Madeline has decided that Michael's romantic involvement with Nikita is affecting his performance, and so she sets about putting pressure on Michael to halt the relationship. Soon enough, Michael is no longer in charge of Tactical Oversight (so he loses his office!), and is no longer running missions: he's replaced by Davenport, a decent guy who's now in charge of field operations. Can Michael give up all the power he's earned in Section One for Nikita? And will Nikita let him give it all up, even if he wants to?!
Meanwhile, a sultry operative by the name of Valerie is putting heavy moves on *both* Walter and Birkoff, which soon enough puts a strain on their friendship.