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What is a daemon thread?

Daemon threads are sometimes called "service" threads. These are threads that normally run at a low priority and provide a basic service to a program or programs when activity on a machine is reduced. An example of a daemon thread that is continuously running is the garbage collector thread. This thread is provided by the JVM.

How will you communicate between two Applets?

All the applets on a given page share the same AppletContext.
We obtain this applet context as follows:
AppletContext ac = getAppletContext();
AppletContext provides applets with methods such as getApplet(name),
getApplets(),
getAudioClip,
getImage,
showDocument and
showStatus().