Originally introduced to Al Swearengen as the bagman for the corrupt territorial magistrate, Clagett, Adams has been recruited into Swearengen's operation. It is Adams who slits the magistrate's throat when the official reneges on his deal with Al to squelch an outstanding murder warrant.
Negotiating the price for the betrayal of Clagett, Adams asks for $20,000; Al offers $2,000. "Take the two," Al says. "You gotta believe you're opening the door to your future."