9. "Ludachristmas" - It's time for the annual "Ludachristmas" party for the TGS staff. Tracy is upset because he cannot participate in the party due to a court-ordered alcohol-monitoring bracelet. The Lemon family pay Liz a visits, as does Jack's mom (Elaine Stritch) to him.
10. "Episode 210" - Jack meets a German TV executive who is planning to buy a major cable TV network. Jack gives Liz financial advice, which motivates her to invest in some real estate, but she must appear before a co-op board to buy the apartment she wants. Jack and C.C. continue their long-distance relationship. Tracy buys a cappuccino machine for TGS, which he stations at Kenneth's desk; as a result, Kenneth gets addicted to coffee.
11. "MILF Island" - A TGS staff member tells The New York Post that Jack is a "Class A Moron" as the reality show he developed during the summer, MILF Island, airs its finale. Jack confines the writers to try to make the person who made the statement confess.
12. "Subway Hero" - When Dennis Duffy (Dean Winters), Liz's ex-boyfriend, becomes New York's latest local celebrity, Jack books him to appear on TGS. Dennis tries to win Liz back into his life. Meanwhile, Jack wants to find a young, hip Republican celebrity to appear at a John McCain fundraiser. Jack can only secure Bucky Bright (Emmy Winner Tim Conway), a TV star from the 1940s and 1950s. When Jack rejects him, he befriends Kenneth, who happens to be a fan. Instead of Bucky, Jack tries to convince Tracy to become the celebrity face of the Republican Party.
13. "Succession" - Don Geiss names Jack the new GE chairman over Jack's rival, Devon Banks. Jack then names Liz as his successor, as "Vice President of East Coast Television and Microwave Oven Programming," because she "always has his back." While Liz attempts to adjust to corporate life, Geiss' health puts Jack's promotion in jeopardy. Meanwhile, Tracy, upset that his son did not invite him to Bring Your Dad to School Day, decides to leave his kids a legacy by creating a pornographic video game.
14. "Sandwich Day" - Liz's ex-boyfriend Floyd (Jason Sudeikis) contacts Liz looking for a place to stay. Jack gets demoted to the 12th floor, while Liz is furious that her sandwich is stolen on TGS's Annual Sandwich Day.
15. "Cooter" - Jack gets a job in politics. When the job is not what he expected he schemes with another government employee, Cooter (Matthew Broderick), to get fired. Jack also enlists the help of C.C., his ex-girlfriend. Meanwhile, Liz thinks she may be pregnant. Kenneth aspires to be an NBC page at the Beijing Olympics, but Donny Lawson (Paul Scheer), the head page, is not prepared to let that happen. Tracy's invention is nearly complete.