Damian has a reunion with Lisa and, meanwhile, Luke continues to get all up in Lily's face about her failure to accept him as he is, basically telling her he knows she'd rather have him be miserable and "straight" than happy and gay. And Lily continues to be flaky; after she previously told Damian she wanted to talk to Holden before considering accepting his help, she makes one halfhearted attempt to call Holden on the phone before rushing off to tell Damian she will accept his help after all.
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http://youtu.be/32vqzwiiXNk Hot Bad Dad makes a really good show of appearing supportive, understanding, and accepting. He encourages Luke to look inside himself and try to explain to Lily exactly how he came to realize he's gay. Moments later, he's telling Lily that Luke is very confused and he needs his parents to give him advice and guidance.
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http://youtu.be/JaMhU9raRX0 Holden comes home and is somewhat less than thrilled to see Damian in his house. Holden and Lily talk, and Holden totally has Lily pegged; he accuses her of wanting Damian around because she wants a ally who will help her "fix" Luke. Holden then talks to Luke and, while making it clear that he'd prefer Damian disappear from their lives, he leaves the choice up to Luke as to whether he wants Damian to stick around.
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http://youtu.be/R8sR1R_rTbg