Charm School. Percy and Michael brood in the ops room. The operation isn't going so well. Percy thinks it would be "swell" if they could get their men out and take Nikita at the same time. Michael scowls and schemes.
Back at the cultural center's basement, Nikita fiddles with the walkie until she gets the NYPD commander stationed outside. She gives him the lowdown about the hostages and the gunmen. As soon as she gets Erik and Leela out, she says the gunmen will surrender. About this time, Michael and a handful of other Division agents show up disguised as FBI. Michael takes the walkie. "Hello, Nikita," he greets her. She recognizes that gravelly voice. They have a conversation of dual meanings, about doing what they have to do, and how messy things can be. But he won't negotiate. "Some prince, huh?" she says to Erik. Erik looks sad for her.
Michael contacts Steven in the security room. Alex sneakily presses a button so that their conversation plays over the PA, alerting Nikita to their plans. Kristina's tired of this bullshit, so she gets Leela into the security room and has her talk to Erik. "Erik, I'm sorry," she says in a shaky voice. Then, stronger: "Sorry you were forced to marry psychopath!" Kristina whacks her across the face. Steven tells Erik to pick a house phone or he'll shoot Leela, but Nikita warns him away. It will reveal their location and then both Erik and Leela will be killed. Nikita calls Steven's bluff; he doesn't shoot. Kristina wants her dead, anyway, so Alex intervenes and breaks one of Leela's fingers. It makes her look like a baddie, but it also lets Nikita know that the situation is about to get worse. Nikita grabs the phone. Steven goes down to confront her. Alex talks to her and gives her a message that sounds like a threat but is actually a heads up. Alex tells Kristina to get back to her people and says she'll "take care" of Leela herself.
Steven and two agents head into the basement. Nikita drops down on them from above like a particularly shiny spider. Guns go off. The two redshirts drop. Michael, outside, hears the ruckus and orders his men inside. Erik, proving himself handy with a gun, takes care of Steven. Alex sets Leela free, then rejoins the other Division agents in the main exhibition hall. They "surrender" to the phony FBI tactical team. Kristina slaps Alex, sneering, "That was for my country." Alex hauls off and punches her in the face. Michael escorts Alex away. "She was just selling the act," he whispers. "So was I," Alex says innocently. Heh.