Item 1.01 Entry into a Material Definitive Agreement.

On March 27, 2009, following a review of credit requirements by Flexsteel Industries, Inc. (the "Company"), the Company entered into amended credit facility agreements with JP Morgan Chase Bank, N.A. The Company's short-term credit facility was increased from $12 million to $15 million and extended to June 30, 2010. The long-term credit facility was reduced from $20 million to $10 million and expires September 30, 2011.

The Company pledged accounts receivable and inventory as security under the amended credit facility agreements. The amount of credit available to the Company will be based on eligible accounts receivable and inventory as defined in the amended agreements. One operating covenant will remain, which is an interest coverage ratio. The ratio is computed as net income plus amortization, depreciation, interest expense, income taxes and the aggregate of all expenses related to stock options ("EBITDA") divided by interest expense, which will vary by quarter over the term of the agreement. The Company believes that the available credit under the amended agreements is sufficient to support its financing needs.

Copies of the agreements amending the credit facilities are attached to this Current Report on Form 8-K as Exhibits 10.1, 10.2, 10.3 and 10.4.

Item 9.01 Financial Statements and Exhibits.

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits

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Exhibit No. Description

Exhibit 10.1 Amendment to Credit Agreement dated March 27, 2009 between Flexsteel Industries, Inc. and JPMorgan Chase Bank, N.A.

Exhibit 10.2 Continuing Security Agreement dated March 27, 2009 between Flexsteel Industries, Inc. and JPMorgan Chase Bank, N.A.

Exhibit 10.3 Line of Credit Note ("Facility A") dated March 27, 2009 between Flexsteel Industries, Inc. and JPMorgan Chase Bank, N.A.

Exhibit 10.4 Line of Credit Note ("Facility B") dated March 27, 2009 between Flexsteel Industries, Inc. and JPMorgan Chase Bank, N.A.