Exhibit 10.1


 


SECOND AMENDMENT TO CREDIT AGREEMENT


 


 


THIS AMENDMENT TO CREDIT AGREEMENT (this “Amendment”)
is entered into as of May 11, 2012, by and between FLEXSTEEL INDUSTRIES, INC., a Minnesota Corporation (“Borrower”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”).


 


RECITALS


 


WHEREAS, Borrower is currently indebted to Bank
pursuant to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of April 14, 2010, as
amended from time to time (“Credit Agreement”).


 


WHEREAS, Bank and Borrower have agreed to certain
changes in the terms and conditions set forth in the Credit Agreement and have agreed to amend the Credit Agreement to reflect
said changes.


 


NOW, THEREFORE, for valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Credit Agreement shall be amended
as follows:


 


1.        Section 1.1. (a) is hereby amended by
deleting “June 30, 2012” as the last day on which Bank will make advances under the Line of Credit, and by substituting
for said date “June 30, 2013,” with such change to be effective upon the execution and delivery to Bank of a promissory
note dated as of May 11, 2012 (which promissory note shall replace and be deemed the Line of Credit Note defined in and made pursuant
to the Credit Agreement) and all other contracts, instruments and documents required by Bank to evidence such change.


 


2.        Section 7.2 is hereby deleted in its entirety,
and the following substituted therefor:


 


   “SECTION 7.2.   NOTICES.
All notices, requests and demands which any party is required or may desire to give to any other party under any provision of this
Agreement must be in writing delivered to each party at the following address:


 


	 	BORROWER:    	FLEXSTEEL INDUSTRIES, INC.
	 	 	Chief Financial Officer
	 	 	3400 Jackson Street
	 	 	Dubuque, IA  52001
	 	 	 
	 	 	 
	 	BANK:	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	666 Walnut Street, 2nd Floor
	 	 	Des Moines, IA  50309


 


or to such other address as any party may designate by written notice
to all other parties. Each such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand delivery,
upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail,
first class and postage prepaid; and (c) if sent by telecopy, upon receipt.”


 


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3.        Except as specifically provided herein,
all terms and conditions of the Credit Agreement remain in full force and effect, without waiver or modification. All terms defined
in the Credit Agreement shall have the same meaning when used in this Amendment. This Amendment and the Credit Agreement shall
be read together, as one document.


 


4.        Borrower hereby remakes all representations
and warranties contained in the Credit Agreement and reaffirms all covenants set forth therein. Borrower further certifies that
as of the date of this Amendment there exists no Event of Default as defined in the Credit Agreement, nor any condition, act or
event which with the giving of notice or the passage of time or both would constitute any such Event of Default.


 


5.        Borrower acknowledges receipt of a copy
of this Amendment signed by the parties hereto.


 


IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD
BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN
CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE ALSO
APPLIES TO ANY OTHER CREDIT AGREEMENTS NOW IN EFFECT BETWEEN YOU AND THIS LENDER.


 


IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be executed as of the day and year first written above.


 


	FLEXSTEEL INDUSTRIES, INC.	 	WELLS FARGO BANK, NATIONAL ASSOCIATION	 
	 	 	 	 	 	 
	By:  	/s/ Timothy E. Hall	 	By:  	/s/ James Hilgenberg	 
	 	Timothy E. Hall, Sr. VP Finance	 	 	James Hilgenberg, Relationship Manager	 
	 	CFO, Secretary, Treasurer	 	 	 	 
	 	 	 	 	 	 


 


 


 


 


 


 


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