Section One is breached and a directory containing files on all Section operatives is stolen. Michael travels to Prague to bid on the directory. Section make the winning bid and they set up a meet with the man who currently has the directory, a terrorist called Harding.
Before meeting with Michael, Harding is chased down by gunmen. He escapes onto a bus. He gets off the bus and walks toward Michael but is gunned down by terrorists. There is a shootout and after Michael and a Section team kill the terrorists, Michael discovers that Harding doesn't have the directory.
Section comes to the conclusion that Harding left the directory with a random passenger on the bus, Gray Wellman. Gray is brought into questioning whilst Nikita and Michael search his apartment. They find nothing.
Nikita goes undercover and starts seeing Gray, protecting him from Benko, a terrorist who wants the directory. Nikita is abducted by Benko and has a necklace placed on her which is full of explosives.
Section stage Nikita's death by blowing up a mannequin which looks like her. Nikita grabs Benko and encourages him to hand over the detonator for the necklace. Benko is taken into custody and Nikita has the necklace removed. The directory is still at large but hopefully it won't fall into enemy hands.
Later, Nikita reveals to Madeline that she is still seeing Gray and goes over to his home for dinner. Unknown to Nikita, Michael is watching them from outside...