In the West Coast Avengers training lab, Captain America is testing out his new shield. He came to Tony to manufacture him a new one. He is pleased with the craftsmanship and gets ready to leave.
Tony goes down to the flight testing line to get Rhodey's attention. He asks to speak to him in private and notifies him of their next "target"--the Guardsmen. Captain America somehow overhears them and asks Tony, as a friend, not to attack the Guardsmen. They disperse and go their separate ways.
Tony leaves upset, he doesn't know what to do, Go after the Guardians and get his technology back or go against one of his good friend's advice. He takes a few days to think of a way where he can achieve both goals.
A few days later, Electro is attacking a city. The Guardians are moving into contain and apprehend him. Without much trouble they are able to capture "Electro" and put him in a containment cell. During nightfall, Rhodey strips off the Electro costume and walks out of the energy cell unharmed. He heads for the generator and shuts it down allowing Iron Man to enter. Right behind Iron Man, Captain America follows him inside the jail house. Iron Man gives Rhodey a gas mask and triggers the PC-2 Gas release. This gas knocks everyone out in the building save it be a few of the guardians. Iron Man manages to take out 4 of them while Rhodey is working on another single-handed.
Iron Man and Rhodey work on disabling all of the Guardians. They get down to the final one when Captain America shows up and tries to put a stop to it. Captain America passes out from a lack of oxygen and tony destroys the armor. Iron Man and Rhodey leave the premises.