U.S. Home Systems, Inc. (the "Company") is filing this amendment to its Current Report on Form 8-K filed on February 4, 2009, which reported the resignation of Peter T. Bulger as President and Chief Operating Officer of the Company. At the time of such report, no determination had been made as to the terms of the separation agreement between the Company and Mr. Bulger.

On February 17, 2009 (effective as of February 24, 2009) the Company and Mr. Bulger entered into a Separation Agreement and General Release of Claims ("Agreement"). The foregoing description of the Agreement is qualified in its entirety by reference to the Agreement itself, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

The material terms of the Agreement are as follows:

The Company shall pay Mr. Bulger a total of $383,250 payable as follows:

(1) $50,000 payable on February 24, 2009 in consideration of the release and waiver of claims as defined in the Agreement;

(2) $33,250 payable on February 24, 2009 to Mr. Bulger for his consulting services through February 2, 2010; and

(3) $300,000 payable $25,000 per month beginning March 2, 2009 and ending on February 2, 2010 in consideration of certain restrictive covenants agreed to by Mr. Bulger.

Mr. Bulger will be engaged by the Company as a consultant until February 2, 2010 to assist the Company with litigation matters, to provide assistance with the transition of his duties and responsibilities to other Company employees and to provide information and advice as requested by the Company relating to his former position with the Company and its ongoing business operations. If Mr. Bulger's consulting services exceed 120 hours during the one year consulting period the Company will pay him $200 per hour for each additional hour over the 120 hour maximum.

Mr. Bulger has agreed that he will not engage in any activities which are in competition with the business of the Company during the period from February 2, 2009 to February 2, 2010. Mr. Bulger is also subject to confidentiality, non-solicitation and non-disparagement restrictions. The Company will reimburse Mr. Bulger for health insurance premiums he pays under COBRA for up to 12 months. The Company's reimbursement obligation shall end upon his coverage under a new employer's insurance plan.

(d) Exhibits.

The following exhibit is filed with this report:

Exhibit
Number       Description of Exhibit
10.1         Separation Agreement and General Release of Claims effective as of
             February 24, 2009 between U.S. Home Systems, Inc., U.S. Remodelers,
             Inc. and Peter T. Bulger.