"Hello Damon," Katherine said sweetly, "May I come in?" Before Damon could react, she stepped over the threshold. "It's so nice to be able to walk into places without an invitation, isn't it?"

"She's been invited in?" Alaric demanded, frowning in Damon's direction.

"Do you honestly think—"

"This is a vampire's residence," Katherine cut in smoothly. "No invitation necessary." She heaved a sigh, "Though, if you had been smarter, you would have signed the ownership of the boarding house over to a human. Without that...well, us vampires can just come and go as we please, can't we John?"

John muttered something, but didn't come inside.

Katherine turned to glare at him, "Why don't you join us?"

"Where's Stefan?" Damon asked abruptly.

"He's outside Elena's house," Katherine answered promptly. "Next question?"

"And what is he doing there?" Damon hissed through gritted teeth.

Katherine pretended to ponder, "Well, he's not doing much of anything really. He was there to watch over Elena, but obviously that was a failure on his part."

Alaric stepped forward, his gaze darting between Katherine and John. "What do you mean? What did you do to him?"

"Nothing much," Katherine replied breezily. "Just dosed him up with some vervain, he should be out cold for the next hour or so."

"An hour?" Damon bellowed. "Good god, how much vervain did you give him?"

Katherine's gaze was steely, "Enough to keep him out of the way."

She turned then and walked past John to rummage with something on the ground outside. Damon froze as the scent of human blood hit him again.

"I brought you a little treat," Katherine called to him, and she moved with lightning speed to deposit two bodies at Damon's feet.

He looked down in horror.

Elena and Bonnie lay on the ground; cold, unmoving.

"Oh my god," Alaric rushed forward, and knelt down to find a pulse. "What did you do to them! How did you—" he broke off, breathing a sigh of relief. "It's okay, they're still alive..." He looked up at Damon, and was shocked to see his expression.

Damon didn't move.

He didn't even blink.

"Damon?" Alaric said uncertainly, more than a little unnerved. "Did you hear me? I said they were still breathing..." Faster than he could blink, Damon suddenly had Katherine pinned to the wall, his hands clutching her throat. "You cold hearted bitch," Damon growled, his fangs protruding in his rage. "How dare you come into my town and—"

Katherine merely laughed, and she made a kissing noise with her lips before pouting. "Aw, no kiss this time, lover?"

Damon let go of her just as suddenly and he backed away, his face twisted with fury. "How did you get your hands on the witch?" he demanded. "She has powers, she would have used them against you—"

"Yes, she would have," Katherine agreed, "Too bad she couldn't." Katherine grinned and reached into pocket, pulling out a long silver chain. A large red jewel hung at the end of it. Damon frowned as he stared at it...it looked familiar...

"This used to belong to Pearl," Katherine explained, walking forward slowly and holding it out to Damon. The minute it passed over Bonnie, it glowed red. "It has the power to hinder a witch's powers to be completely useless," Katherine smiled widely. "And of course, Elena was easy enough to capture. I have been invited into her home, as you very well know."

"Your own daughter?" Alaric said in disbelief to John. "You let her to do this to your own flesh and blood?"

"He didn't have a choice," Katherine said coldly, watching as Damon leant over Elena and Bonnie protectively. "I created him, after all..."

Elena stirred suddenly, and everyone froze. "Not my family..." she mumbled. "Not Jeremy.." Her eyes flew open, and she gasped. "NO! I WON'T LET YOU—"

"Shh, shh," Damon said desperately, cradling Elena in his arms. "Hey, look at me. You're safe now, okay? Elena, can you hear me? I won't let anything happen to you..."

Katherine scowled.

"Damon?" Elena clutched onto Damon's arm. "You have to help them! Katherine, she—" Elena chose this moment to look at the body lying next to her. "Bonnie! Oh my god, is she—?"

"She's alive," Katherine interrupted, watching as Elena grasped Damon even more tightly in fear. "But, just barely." She grinned and blurred, picking up Bonnie and slipping the necklace over her ahead. Without a second glance, she dropped Bonnie back onto the floor behind her. "The longer that necklace stays around her neck, the sooner her powers will deteriorate."

John shifted slightly, but when Alaric looked at him, his face was expressionless.

Elena struggled to stand up, and Damon protectively kept his arms around her. "Why are you doing this?"

"Because I have a proposition for you, Damon," Katherine smiled seductively, her eyes glistening. "And if you don't agree to it, then I'll make you all watch as the witch dies..."