In 2000, in New York City, a 10-year-old Dave Stutler encounters Balthazar in his Manhattan antique store. When Balthazar gives Dave Merlin's dragon figurine, the statue comes to life to form a ring, revealing his status as the Prime Merlinean. As Balthazar retrieves a book meant to teach magic, Dave accidentally opens the Grimhold, releasing Horvath. Balthazar and Horvath battle for possession of the Grimhold and are imprisoned in an ancient Chinese urn with a ten-year lock curse while Dave flees with the ring.