Alex has been given a promotion to full agent, with all the perks that entails. She's free to "rejoin the rest of the world", but that's not without a few catches. Along with the nice apartment, her successful cover career, and an new SUV, Alex still has an ID chip implanted in her which allows Division to keep tabs on her.
Alex encounters Nikita, and naturally Nikita wishes to remove that tracking chip and free Alex. Nikita flashes back to when she witnesses Percy test a kill chip which causes a North Korean politician to die on national TV. When Percy suggests that the kill chip technology can be used on the tracking chip, Nikita realizes that Alex may have the kill chip implanted in her as well.
Later Nikita tracks down CIA agent Ryan, and asks him to bring Birkoff in. Meanwhile, Alex speaks with her new next door neighbor Nathan, who invites her to a party.
Birkoff is brought into the CIA field office, and Nikita starts to hack into his laptop while Ryan interrogates Birkoff about his work before he came to Division. Michael and Percy study surveillance footage of Birkoff's kidnapping and realize that the culprits must be CIA.
Alex attends Nathan's party, but attacks a flirtatious partygoer when he starts getting too aggressive. Shocked at her behavior and at all the eyes suddenly on her, Alex leaves. Later, Nathan speaks with Alex, wanting another chance with her, but she refuses him. Nikita gives Alex a computer virus to upload into Division's system to distract them while she hacks into Birkoff's account.
Percy gets in touch with his new contact at the CIA, Barbara, and tries to figure out where Birkoff is, and more importantly, where Ryan is. Barbara admits that, as per her orders, Ryan is off limits. Michael storms into the room where Birkoff is being held and he's captured by the CIA.
Barbara releases Michael and Birkoff from Ryan's custody, and Ryan himself is demoted. However, later on Nikita meets with a dejected Ryan and tells him that she'll eventually make him a hero. Alex decides to meet up with Nathan and his friends for a night out.