Nicholas Varsi arrives at the airport and goes to a locker but finds it empty. An enemy agent approaches him and demands to see his passport for identification purposes. Coleman then gives him new identity papers. They’re interrupted when a government agent, Ben Nelson, arrests them both. Varsi fingers the other man and says he’s here to defect with a lot of information.
Jim approaches a rooftop TV repairman and after exchanging sign and countersign, the man leaves Jim his briefing. He’s informed that Nicholas Varsi, an assassin, was captured eight days ago and has asked for asylum, but refuses to give away his assignment until he has guarantees. Nelson with the Federal Intelligent Service is holding Varsi for interrogation. The IMF must determine if Varsi is telling the truth about defecting.
The usual team, with Andrea subbing as Casey is in Europe, go over the hotel where Varsi is being held. The IMF is aware that there’s a deep-cover enemy agent in the FIS so they can’t work with them. Jim notes Varsi gets his orders from Colonel Kemmer of the KGN, who has never been seen. Casey has got them the KGN codes so Jim will be impersonating one of their agents sent to interrogate Varsi. Barney reveals he has a stress-analyzer and four smoke bombs ready, but Andrea warns that a trained agent can fool the machine.
Varsi is still locked up and tries to negotiate with Nelson, who demands proof that Varsi is sincere. Varsi refuses and is willing to wait them out. Barney walks outside and sets off an arson charge in the ground floor of the hotel, and Jim and Willy arrive as policemen to investigate. They spread out to search the place and plant the four smoke bombs, then go upstairs and claim that one of Nelson’s men sent them up. Nelson suspects a trap and tells them to stay while they investigate. Then they break into Varsi’s room and drug him unconscious, then put a mask of Willy on him. Willy sneaks out and goes down to the squad car and hides in the back.
Nelson returns back upstairs as the smoke grenades go off, and Jim claims that “Willy” was shot and he’s called an ambulance. After checking “Willy’s” (fake) wound, Nelson lets Jim get him out to where Barney and Andrea are waiting as ambulance drivers. They drive off with Varsi just as Nelson realizes he’s been fooled, while Jim and Willy head off the other way. He sends his man Coleman to chase them but Jim and Willy circle around and Willy cuts off Coleman with some prepared oil drums.
Varsi wakes up in an abandoned winery and demands answers from Barney and Willy, who take him to see Jim. Jim gives the proper KGN code signs and demands to know why he defected. Varsi says he pretended to defect and refuses to tell Jim anything further since he’s still on his original assignment. Varsi demands time to think and they lead him away, where he hears Andrea sobbing in an interrogation room.
Nelson works with the police to search the area, while Andrea is thrown in with Varsi. She claims to be an FIS agent who was captured at the same time and is equally suspect in the eyes of their superiors. Varsi disables one bug, unaware of the other, and he and Andrea spar, since he figures she may be a KGN plant. He claims he really plans to defect, then they flirt and kiss. Barney can’t determine if Varsi is lying or not with his machine, so they go with the next step in the plan. Jim declares that Varsi passed the lie detector test but must prove his loyalty and sever his chances of defecting by killing FIS agent Andrea. Jim gives him a gun and Varsi shoots her: it’s loaded with blanks. Jim then agrees to help him carry out his assignment.
Nelson has narrowed the search down to four square blocks, while Varsi asks to take Andrea along as a hostage. They follow Varsi’s car using an electronic bug and he stops off at an electronic shop. Varsi locks her in the trunk and goes in to get a detection device. He finds a bug planted on him and leaves it there while they drive off. The guys figure he’s on the move and start following again. Varsi pulls into a gas station while Andrea activates a second tracking device. However, the attendant notices Varsi’s device and toys with it, revealing the second bug. He realizes Andrea is in on it and destroys the second bug.
Varsi takes Andrea to a hotel across from the city courthouse and ties Andrea up, then waits for Colonel Kemmer to arrive. Varsi demanded that Kemmer himself come to get him out as a guarantee on his services. He then puts Andrea in the bedroom and prepares a sniper rifle. Andrea manages to get to a phone, call Jim, and tap out the room number. She then gets back to the bed just as Varsi comes back in, but he doesn’t notice the phone is slightly off the hook.
There’s a knock on the door and Kemmer arrives: FIS agent Nelson, who is really the KGN deep-cover spy. Varsi holds him at gunpoint and plans to turn him in as he really planned to defect. However, Kemmer reveals he disabled the firing pin on the sniper rifle, then wounds Varsi. He has Andrea tie Varsi up, then prepares to shoot the government officer, then dispose of Varsi as a FIS and claim he was acting as an enemy agent.
Jim and Willy arrive and Jim spots Kemmer preparing to take the shot. Jim climbs the wall up to the room while Varsi and Andrea working together knock over a table and distract Kemmer. Jim comes in the window and with some help with Willy knocks Kemmer out. Varsi is taken away in an ambulance after he and Andrea exchange some last flirting comments.
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