The Mandarin has trouble with his step-son, Gene Khan, while trying to retrieve the rings. Tony Stark as Iron Man battles one of his inventions, that Obadiah transformed into a weapon. The Mandarin steals the ring of Obadiah, and fights Iron Man. Back in the Mandarin's lair it is revealed that Gene Khan has become the Mandarin.

Iron Man forms an alliance with Blizzard in order to take down Obadiah Stane. Unfortunately, Blizzard isn't what he appears to be.