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Despite her protestations, Elena returns to Toronto for her photography opening accompanied by Clay (there to offer protection). Despite Elena's claims that Clay is her cousin, Philip suspects there is something deeper between them (the smoldering looks don't help things). Philip, wanting to get to the bottom of the relationship, offers to let Clay stay with them.
Cut to Victor Olson, the creepy Danny Bonaduce-looking guy that molested Elena as a child. We learn (as many suspected) that Pack enemy Daniel Santos had his right hand man Zachary Cain turn Victor into a werewolf (back in Episode #5) in order to target Elena, whom he blames for sending him to prison. Victor shows up at Elena's art opening, but Philip - realizing who he is (remember how Elena confided in Philip about Victor) starts beating Victor up. Outside, Clay spots Daniel Santos and nearly chokes him to death when Diane, Philip's sister (who is crushing on Clay) interrupts. Santos and Victor get away.
Back home, Philip confronts Elena on the true nature of her relationship with Clay. He can tell they are more than just cousins. Elena admits that her "family" is not her blood family - and that someone is targeting them. That's why Clay is here - her "adoptive father" Jeremy sent him to protect her. Philip surmises that she and Clay have a romantic past and asks Elena if she's done with him. Elena can't answer him, so Philip storms off.
Earlier, Clay dug through Philip's files and found the video of wolf Elena and Logan from Episode #1 (the video that Philip was later commissioned to turn into an ad campaign - see Episode #5) along with the name "James Williams" (the executive that hired Philip for the campaign). Later, Diane tells Clay that a "James Williams" funded Elena's art show and insisted on the location. Clay runs and tells Elena that some dude named James Williams is after them - he clearly engineered the location so Santos/Victor would show up, and he's connected to Philip!
Upstate, Logan arrives at Stately Stonehaven Manor and confesses to Nick that his girlfriend is pregnant - with a boy. Pack law mandates that Logan take the boy away from its mother and raise him with the Pack, but Logan doesn't want to do that. Surprisingly, Nick agrees with Pack law. Logan struggles with whether to tell Jeremy, because once he does, Jeremy will enforce the law.
Joey Stillwell, son of Pack ally Dennis Stillwell (the guy whose eyes got gouged out in Episode #6), places a frantic call to Stately Stonehaven Manor and reveals the he just escaped captivity. He was kidnapped by Daniel Santos and Zachary Cain! He arrives at Stonehaven and reveals some vague details about where he was being held. Nick pieces together a location - an old distillery - so Jeremy, Joey, Nick and Logan head there, hoping to catch Santos. There, they find photos of Elena, Logan with his girlfriend Rachel and Jeremy's dead dad's ring. Jeremy mentions that someone would have had to "pry it from his dead hand." The Pack realizes they've been watched, and possibly their loved ones are targeted. Freaked, Logan admits that Rachel is pregnant and he needs to go protect her. Jeremy agrees.