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Chloe answers her cell to Daniel who tells her they have to meet now. When the two meet at his apartment, a fire alarm goes off in the hall, but Daniel tells Chloe that it's just broken. After Daniel calls for maintenance and the superintendent fixes the alarm, he accidentally kicks and loosens the gas heater valve outside of Daniel's apartment. Unaware of the danger, Daniel tells Chloe that Kate is in remission. He and Chloe can now tell Kate and Lucas the truth about their relationship. Chloe tells him about her meeting with the priest and that Daniel's call was a sign that she belongs with him. Daniel gets a page from the hospital, has to go, but promises to be back soon so they can tell Kate and Lucas the truth. Meanwhile, Lucas, still completely drunk, decides to confront Daniel about sleeping with Chloe. He passes out at the bar before he can go, and Maggie runs out to get her car to drive him home. But when she returns, he's gone. She goes to Daniel at the hospital, demanding to know where Lucas is. At the same time, Lucas has gone to Daniel's to confront him about the affair. Chloe is about to let him in, when suddenly there's an explosion! Stephanie sees Philip and Melanie kissing and confronts them. Torn, Philip lies that he's in love with Melanie. Crushed, Stephanie leaves and confides in Chelsea who reminds her it takes two to tango. Philip "bares" his heart to Melanie who doesn't believe him, and knows he was playing her. She kicks him out. Philip vows not to lose to EJ and heads off. Later, Melanie, thinking Philip has returned, opens the door to Stephanie who slaps her. Going off of what Dr. Baker told her, Nicole asks Brady if he's in love with her. Brady says he does love her, but only as a friend, and is not in love with her. Nicole feels the same way about Brady and they confirm they'll keep their secret from EJ about the baby, completely unaware that Philip has overheard them. Meanwhile, Stefano worries Melanie will screw over the DiMeras regarding the fuels project. EJ assures Stefano he's got Melanie on a tight leash, and claims that once he's married to Nicole, she'll be put on a tighter one.