Tony is home alone as Y/N is out. Pepper calls him. He answers.

Pepper: Tony?

Obadiah uses the Sonic Taser on Tony.

Pepper: Tony, are you there? Hello?

Obadiah hangs up the phone.

Obadiah: Breathe. Easy, easy. You remember this one, right? It's a shame the government didn't approve it. There's so many applications for causing short-term paralysis. Tony. When I ordered the hit on you, I worried that I was killing the golden goose. But, you see, it was just fate that you survived that.

He pulls out the arc reactor from Tony's chest.

Obadiah: You had one last golden egg to give. Do you really think that just because you have an idea, it belongs to you? Your father, he helped give us the atomic bomb. Now, what kind of world would it be today if he was as selfish as you? Oh, it's beautiful. Tony, this is your Ninth Symphony. What a masterpiece. Look at that. This is your legacy. A new generation of weapons with this at its heart. Weapons that will help steer the world back on course, put the balance of power in our hands. The right hands. I wish you could've seen my prototype. It's not as... Well, not as conservative as yours. Too bad you and Y/N had to involve Pepper in this. I would have preferred that she lived.

Pepper calls Rhodey and tells him everything.

Rhodey: What do you mean, he paid to have Tony and Y/N killed? Pepper, slow down. Why would Obadiah... Okay, where's Tony and Y/N now?

Pepper: I don't know. He's not answering his phone. Please go over there and make sure everything's okay. Thank you, Rhodey. I know a shortcut.

With Tony, Y/N enters and sees Tony.

Y/N: Dad!

Y/N runs over and sees the arc reactor missing.

Y/N: Shit! Think, Y/N, think!

Y/N looks at his arc reactor and pulls it out and slams it into Tony's chest as Y/N falls to the ground. Having regained some control of his body, Tony crawls down to the workshop and sees Y/N's old Arc Reactor. He tries to grab it but fails as Dummy hands it to him.

Tony: Good boy.

Tony breaks the glass. Meanwhile Obadiah puts the Arc Reactor inside a newly made Iron Man suit. Rhodey enters and sees Y/N. He goes over to him.

Rhodey: Y/N! What happened?

He points to the workshop, and he goes down and sees Tony.

Rhodey: Tony? Tony? Tony? Tony? Tony! Tony! You, okay?

Tony hands him the Arc Reactor.

Tony: Get it to Y/N...

Rhodey runs back upstairs with Tony as he puts the old Arc Reactor in Y/N. Y/N slowly gets up.

Tony: Where's Pepper?

Rhodey: She's fine. She's with five agents. They're about to arrest Obadiah.

Tony: That's not going to be enough.

pepper and the agents arrive to arrest Obadiah.

Pepper: Section 16. Section 16. There it is.

Pepper tries her keycard, but it does not work.

Pepper: My key's not working. It's not opening the door.

Coulson used a small bomb on the door.

Pepper: Oh, wow! What's that? It's, like, a little device. It's, like, a thing that's going to pick the lock?

Coulson: You might want to take a few steps back.

The door blows open. Obadiah hears this gets inside the suit. Tony and Y/N get inside their Iron man suits.

Rhodey: That's the coolest thing I've ever seen.

Tony: Not bad, huh? Let's do it.

Rhodey: You need me to do anything else?

Y/N: Yes, keep the skies clear for us.

They then fly off.

Rhodey: Damn!

He then sees Tony's Mark II.

Rhodey: Next time, baby.

Rhodey gets in one of Tony's cars and drives off. Pepper and the others searched for Obadiah and discovered Tony and Y/N's Iron Man armors which they had built and used to escape the cave.

Coulson: Looks like you were right. He was building a suit.

Pepper: I thought it'd be bigger.

They look around until Pepper finds Obadiah in his own highly upgraded and weaponized Iron Monger suit.

Agent: Take him out!

They shoot at the suit, but Obadiah used to attack Pepper and the Agents. Y/N and Tony are flying towards Pepper.

Tony: How do you think the Mark One chest piece is going to hold up?

JARVIS: The suits at 48% power and falling, sir. That chest piece was never designed for sustained flight.

Y/N: Keep us posted.

Tony calls Pepper as Y/N joins the call while Pepper exits the building.

Y/N: Mom!

Pepper: Tony, Y/N! Tony, are you two, okay?

Tony: We're fine. How are-

Pepper: Obadiah, he's gone insane!

Tony: I know. Listen, you'd better get out of there.

Pepper: He built a suit.

Y/N: Get out of there right now!

The ground cracks open as Iron Monger comes out.

Iron Monger: Where do you think you're going? Your services are no longer required.

Before he could kill her Y/N flies in and tackles Iron Monger to the ground and threw Iron Monger into the nearby motorway. A family stops their car as Iron Monger lifts the car.

Iron Monger: I love this suit!

Y/N: Put them down!

Iron Monger: Collateral damage, Y/N.

Y/N: JARVIS, divert power to chest RT.

He blasts him as Tony comes and stops the car from crashing.

Jarvis: Power reduced to 19%.

The woman tries to drive and drive off with Tony.

Tony: Lady! No, no, no, no, no, no!

Tony falls under the car as Iron Monger punches Y/N away next to Tony as he runs at the two. Iron Monger grabbed a passing motorbike, causing the rider to crash, and used the bike to strike Tony. Y/N flies in and punches him as Iron Monger grabs him and throw him to the bus.

Iron Monger: For 30 years, I've been holding you up! I built this company from nothing! Nothing is going to stand in my way.

He throws both Tony and Y/N into the bus. Y/N gets up only to see Iron Monger aim a missile at the bus.

Y/N: Oh, crap...

Iron Monger: Least of all... you two!

He shoots the missile, and the bus explodes as Y/N and Tony go in the air and recovers and hovers above the air.

Iron Monger: Impressive. You've upgraded your armor! I've made some upgrades of my own!

Iron Monger then flies in the air.

JARVIS: Sir, it appears that his suit can fly.

Tony: Duly noted. Take us to maximum altitude.

JARVIS: With only 15% power, the odds of reaching that--

Tony: We know the math! Do it!

They all fly in the air.

Soldier 1: Sir, you're not going to believe this. That thing is back.

Soldier 2: Get me Major Allen. Scramble the jets!

Rhodey: Not necessary, people. Just a training exercise.

Soldier 1: Yes, sir.

Tony and Y/N continue to fly in the air.

JARVIS: Thirteen percent power, sir.

Y/N: Climb!

JARVIS: Eleven percent.

Tony: Keep going!

JARVIS: Seven percent power.

Tony: Just leave it on the screen! Stop telling me!

Iron Monger grabs both Y/N and Tony.

Iron Monger: You had a great idea, Tony, but my suit is more advanced in every way!

Y/N: Oh, then how'd you solve the icing problem?

Iron Monger: Icing problem?

The Iron Monger then shuts down.

Tony: Might want to look into it.

Y/N hits him to the ground.

JARVIS: Two percent. We are now running on emergency backup power.

Tony: Woah!

They fall but softly land on the roof of Stark Industries.

Y/N: Mom!

Pepper: Tony! Y/N! Oh, my God, are you okay?

Tony: We're almost out of power. We've got to get out of this thing. We'll be right there.

Iron Monger land behind them.

Iron Monger: Nice try!

Y/N tried to blast him, but he was missing his armor for his hand.

Y/N: Crap.

Iron Monger smacks him away. Tony punches Iron Monger as he grabs Tony.

Tony: Weapons status?

JARVIS: Repulsors offline. Missiles offline.

Tony: Flares!

Flares are shot out as Iron Monger lets him go.

Iron Monger: Very clever, Tony.

Y/N and Tony hide.

Tony: Potts?

Pepper: Tony!

Tony: This isn't working. We're going to have to overload the reactor and blast the roof.

Pepper: Well, how are you going to do that?

Tony: You're going to do it. Go to the central console, open up all the circuits. When I get clear of the roof, I'll let you know. You're going to hit the master bypass button. It's going to fry everything up here.

Pepper: Okay. I'm going in now.

Tony: Make sure you wait till I clear the roof. I'll buy you some time.

Y/N jumps on Iron Monger's back as Pepper starts overload the reactor.

Y/N: Oooo, what's this?

He pulls out a wire from Obadiah's suit.

Iron Monger throws him next to Tony. Iron Monger mask opens up.

Obadiah: I never had a taste for this sort of thing, but I must admit, I'm deeply enjoying the suit!

He crushes Y/N's helmet and throws it.

Obadiah: You finally outdid yourself, Tony! You'd have made your father proud!

Pepper: It's ready, Tony! Get off the roof! Y/N!

Obadiah shoots at Tony and Y/N as they use the suit to protect themselves. The glass shatters as Y/N and Tony hold on to the ledge.

Obadiah: How ironic, Tony! Trying to rid the world of weapons, you gave it its best one ever!

Tony: Pepper!

Obadiah: And now I'm going to kill you with it!

Obadiah fires a missile but misses.

Obadiah: You ripped out my targeting system!

Y/N: Time to hit the button!

Pepper: You told me not to!

Obadiah: Hold still, you little prick!

He continues to miss.

Tony: Just do it!

Pepper: You'll die!

Y/N: Push it!

Pepper pushes it and the reactor overloads. As a result, the reactor electrocuted Stane to death. His body proceeded to fall into the reactor, resulting in a massive explosion. Y/N and Tony almost died from the lack of power to their Arc Reactors, but J.A.R.V.I.S. managed to keep them alive long enough to be rescued. The next morning Rhodey explains what happened last night.

Rhodey: You've all received the official statement of what occurred at Stark Industries last night. There have been unconfirmed reports that a robotic prototype malfunctioned and caused damage to the arc reactor. Fortunately, a member of Tony Stark's personal security staff...

Tony is reading a newspaper.

Tony Stark: "Iron Man" and "The son of Iron Man." That's kind of catchy. It's got a nice ring to it. I mean, it's not technically accurate. The suit's a gold-titanium alloy, but it's kind of evocative, the imagery, anyway.

Coulson comes in.

Coulson: Here's your alibi.

Tony: Okay?

Coulson: You and Y/N were on your yacht.

Tony: Yeah.

Coulson: We have port papers that put you in Avalon all night, and sworn statements from 50 of your guests.

Tony: See, I was thinking maybe we should say it was just Pepper, Y/N, and me alone on the island.

Coulson: That's what happened.

Tony: All right.

Coulson: Just read it, word for word.

Y/N: There's nothing about Stane here.

Coulson: That's being handled. He's on vacation. Small aircraft have such a poor safety record.

Tony: But what about the whole cover story that it's a bodyguard? He's my... I mean, is that... That's kind of flimsy, don't you think?

Coulson: This isn't my first rodeo, Mr. Stark. Just stick to the official statement, and soon, this will all be behind you. You've got 90 seconds.

Pepper: Agent Coulson? I just wanted to say thank you very much for all of your help.

Coulson: That's what we do. You'll be hearing from us.

Pepper: From the Strategic Homeland...

Coulson: Just call us S.H.I.E.L.D.

Pepper: Right. Let's get this show on the road.

Tony: You know, it's actually not that bad. Even I don't think I'm Iron Man.

Peppe: You're not Iron Man.

Y/N: We are so.

Pepper: You're not.

Tony: All right, suit yourself. You know, if we were Iron Man, I'd have this girlfriend who knew my true identity. She'd be a wreck, 'cause she'd always be worrying that I was going to die, yet so proud of the man I'd become. She'd be wildly conflicted, which would only make her more crazy about me. Tell me you never think about that night.

Pepper: What night?

Tony: You know.

Pepper: Are you talking about the night that we danced and went up on the roof, and then you went downstairs to get me a drink, and you left me there, by myself? Is that the night you're talking about? Thought so. Will that be all, Mr. Stark?

Tony: Yes, that will be all, Miss Potts.

Tony and Y/N enter.

Rhodey: And now, Mr. Stark has prepared a statement. He will not be taking any questions.

Tony: Thank you. Been a while since I was in front of you. I figure I'll stick to the cards this time. There's been speculation that I was involved in the events that occurred on the freeway and the rooftop...

Christine: I'm sorry, Mr. Stark, but do you honestly expect us to believe that that was a bodyguard in a suit that conveniently appeared, despite the fact that you...

Tony: I know that it's confusing. It is one thing to question the official story, and another thing entirely to make wild accusations, or insinuate that me and my son are superheroes.

Christine: I never said you were superheroes.

Tony: Didn't? Well, good, because that would be outlandish and fantastic. I'm just not the hero type. Clearly. With this laundry list of character defects, all the mistakes I've made, largely public.

Rhodey: Just stick to the cards, man.

Tony: Yeah, okay. Yeah. The truth is... Me and my son are Iron Man.

Everyone got up all clamoring at once. Y/N and Tony smile.