Interesting parallel lives you had yesterday! I think you handled thing pretty well. I think CEO is being very careful, but he is pushing the line, little by little. He is watching your reactions. He knows "involvement" with someone who works for him would be a very tricky thing. I think at the first sign of negativity he would back off. He strikes me as a careful type. And of course, someone is jealous!
I think "lost" describes your H very well. It has to be really hard on him to live two (at least) lives. I wouldn't think he could keep it up indefinitely, but he seems to be a stubborn one!
