We begin with an impressive sight a group of knights walking through the forest, setting up camp, and engaging in a ritual of prayer. All this is seen through the eyes of a one eyed bandit named Siward.
Meanwhile, we see the merry men in a new camp practicing archery, whilst Robin and Will have a heart to heart in which Robin gives him (and the viewers) a sort of state of the union speech, answering the questions we and Will surly have, such as why hasn't he killer Gisburne when given the chance (answer: Gisburne is a good adversary. Stupid and the people hate him, thus will turn to Robin.). Soon, Siward appears, and with him, he's brought the knights.
A horse's neigh alerts the group of the Templar's presence. , after which they are attacked! The group loses one of the newcomers and take Much as a hostage. When Robin Hood leads the rest to safety, the Templars retreat and set up camp in a nearby village. They speak French and German showing us that they're foreigners, and Much looks completely lost and baffled, as do the villagers. The merry men arrive at the edge of the forest where they have a good view of the village, and Robin declares his intent to single-handedly attempt a rescue of Much.
Before anything can happen, the Sheriff, Gisburne and a group of soldiers arrive at that very village in order to collect taxes. They too, like everyone else, are puzzled by their presence. The Sheriff uses his tact and political ability, whilst Gisburne uses nothing but his sword. Yet, Gisburne is good for something, as he spots Much, and alerts the Sheriff of his connection to Robin Hood. The Sheriff then informs the Templars of who Robin Hood is, and the Templars reply that they have sworn to destroy all the merry men because of an outrage that has been committed against the order, although what that is, they do not say. Glad to have someone else do his work for him, the Sheriff is happy to back away and let the Templars dispose of Robin Hood.
Next we are witness to yet another ceremony. The burning of a pyre on which lies the effigy of a Knight Templar. During this ritual Robin attempts a rescue of Much, but is spotted by a Templar and surrounded. After a small sword fight, Robin ends up on the ground with six swords pointed at him. Accused of theft then lying, he is put on trial: trial by battle. Due to his opponent's weapon breaking, Robin gets a chance to deal a devastating blow, allowing him a chance to run away, back into the forest. Robin informs the others that the Templars believe they have stolen something sacred from them. Then it dawns on him... Siward took it. Just then, a Templar rides up and calls to the forest that he (Robin) has until dawn... and then they must hang Much.
So it's off to Nottingham to find the one-eyed Siward. We see him being chased through the market, and then arrested for stealing a man's purse. They search him and find an icon... the banner crest, a symbol of the Knights Templar. The Sheriff explains its importance to Gisburne (and to us) and muses over the fact that Robin and the band will be killed for it. Robin meets an informer, a potter, who tells him that he too had an encounter with Siward as well, and at last reveals that he's been taken to the Sheriff, but not to worry. The Sheriff is away at Leaford, Marion's birthplace. With Marion's encyclopedic knowledge of the grange, their recovery mission of the crest is textbook.
The next morning we are given the full pre-hanging atmosphere. Just at the last moment, whilst Much contemplates whether death is painful or not, Robin appears with the crest. Much is set free and the crest returned, but when Robin asks for his sword to be returned, he is once more called a thief and dismissed. As Robin and Much return to the forest, warily looking back, they see the Templars fulfilling their promise to destroy them, and are charging down on them.
Robin, ever brilliant, has prepared and with one swoop (trap) they swing a rope down and dismount the lot of them. Finally he gets his sword, and the crest they melt down, whilst sending the two speaking-role Templars off on one horse, just as the symbol of the crest shows.
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