Coming face to face with Jerry Seinfeld reminded Howard of an infamous gaffe by Howard TV's Mike Gange 22 years ago.
If you don't know the story, Howard's daughter's teacher, a big Seinfeld fan, was on her deathbed, so Howard thought it would be anice gesture to send her some Seinfeld episodes on tape. Gange was in charge of recording the episodes and didn't bother to ensure that the tape he was using was blank, which it wasn't.
Gange had actually taped over a pornographic movie... only not all the way. The sick teacher was horrified and, of course, naturally assumed this was Howard's idea of a joke.
In any other company, Gange would've been fired immediately, but here he's now second-in-command at Howard TV.