**SUMMARYOF DIRECTOR AND NAMED EXECUTIVE OFFICER COMPENSATION**

This summary sets forth the compensation of the Directors of KimballInternational, Inc. (the "Company"). The summary also includes compensation of theChief Executive Officer, Chief Financial Officer, and three most highly compensated executive officers of the Company as of the fiscal year ended June 30,2010 (the "Named Executive Officers").

For a detailed description of the compensation arrangements that theDirectors and Named Executive Officers participate in, refer to the Company'smost recent Proxy Statement filed with the Securities and Exchange Commission.

**Director Compensation**All Outside (non-employee) Directors receive annual compensation of $40,000 forthe year for service as Directors. The Chairperson of the Audit Committee of theBoard of Directors receives $5,000 per committee meeting, and other AuditCommittee members receive $3,500 per committee meeting. The Chairperson of theCompensation and Governance Committee receives $3,500 per committee meeting, andother members of the Compensation and Governance Committee receive $2,000 percommittee meeting.  Members of the Strategic Planning Committee receive $3,500 per committee meeting.

The Directors can elect to receive all of their annual retainer and/ormeeting fees in shares of Class B Common Stock under the Company's 2003 StockOption and Incentive Plan.   Directors are also reimbursed for travelexpenses incurred in connection with Board and Committee meeting attendance.

An Outside Director is a director who is not an employee of the Companyor one of its subsidiaries.  James C. Thyen, President and Chief ExecutiveOfficer, and Douglas A. Habig, Chairman of the Board, are Directors of theCompany but do not receive compensation for their services as Directors.

**Named Executive Officers**

**Base Pay**Periodically,the Compensation and Governance Committee of the Board of Directors reviews andapproves the salaries that are paid to the Company's executiveofficers. The following are the current annualized base salaries for theCompany's Named Executive Officers:

|  |      James C. Thyen, President and Chief Executive Officer$879,996
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group$520,728
     Robert F. Schneider, Executive Vice President, Chief Financial Officer$421,564 
     John H. Kahle,		Executive Vice President, General Counsel, Secretary$354,120 
     Gary W. Schwartz,		Executive Vice President, Chief Information Officer$284,180
**Cash Incentive Compensation**Each of the Named Executive Officers was eligible to participate in the Company's2005 Profit Sharing Incentive Bonus Plan (the "Plan") for fiscal year2010. A long-standing component of the Company's profit sharing incentivebonus plan is that it is linked to the performance of the Company whichautomatically lowers total compensation expense when profits are down. Under thePlan, cash incentives are accruedannually and paid in five installments over the succeeding fiscal year. Exceptfor provisions relating to retirement, death, permanent disability, and certainother circumstances described in a participant's employment agreement,participants must be actively employed on each payment date to be eligible toreceive any unpaid cash incentive installment. The total amount of cashincentives accrued andauthorized to be paid to the Named Executive Officers based on the Company'sfiscal year 2010 results is listed below. The Named Executive Officers receivedan installment of 50% of the payment in August 2010,and the remaining portions will be paid in equal installments in September 2010,January 2011, April 2011, and June 2011.

     James C. Thyen, President and Chief Executive Officer$  		64,867
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group $		138,239
     Robert F. Schneider, Executive Vice President, Chief Financial Officer$  		33,159 
     John H. Kahle,		Executive Vice President, General Counsel, Secretary$  		27,854 
     Gary W. Schwartz,		Executive Vice President, Chief Information Officer$  		22,353
Donald D. Charron, Robert F. Schneider, JohnH. Kahle, and Gary W. Schwartz were awarded additional discretionary cashcompensation of  $10,000; $33,000; $27,000; and$22,000, respectively, for fiscalyear 2010.

**Stock Compensation**The Named Executive Officers may also receive a variety of stock incentivebenefits under the 2003 Stock Option and Incentive Plan consisting of: restrictedstock, restricted share units, unrestricted share grants, incentive stockoptions, nonqualified stock options, stock appreciation rights, performanceshares, and performance units.  The only form of award granted to NamedExecutive Officers for fiscalyear 2010 was performance shares.  Performance shares include both anannual performance share ("APS") award and a long-term performance share ("LTPS")award with one-fifth (1/5) of the LTPS award vesting annually over the succeedingfive-year period.  No other form of award has been granted to the NamedExecutive Officerssince July 2005. 

The following table summarizes the performance shares issued in Class ACommon Stock during August 2010 to the Company's Named Executive Officerspursuant to their fiscal year 2010performance share awards:
APS AwardLTPS Award(number of				shares issued) (1)(number of				shares issued) (1)
     James C. Thyen, President and Chief Executive Officer11,44020,104
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group 		2,025 		5,956
     Robert F. Schneider, Executive Vice President, Chief Financial Officer   		600 		4,316
     John H. Kahle,		Executive Vice President, General Counsel, Secretary   		600 		4,316
     Gary W. Schwartz,		Executive Vice President, Chief Information Officer   		600 		4,316
(1) Shares have not been reduced by the number of shareswithheld to satisfy tax withholding obligations.

The following table summarizes the maximum number of performance shares awardedin August 2010 to the Company's Named Executive Officers for fiscal year 2011:  
APS AwardLTPS Award(number of shares)(number of shares)
     James C. Thyen, President and Chief Executive Officer143,000183,000
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group  		7,500 26,300
     Robert F. Schneider, Executive Vice President, Chief Financial Officer  		7,500 30,300
     John H. Kahle,		Executive Vice President, General Counsel, Secretary  		7,500 29,300
     Gary W. Schwartz,		Executive Vice President, Chief Information Officer  		7,500 28,300
The number of shares to be issued will be dependent upon the percentage payoutunder the Plan.  Refer to the Company's Proxy Statement for furtherdetails.

The following table summarizes shares issued in Class A CommonStock during January 2010 to the Company's Named Executive Officers pursuant totheir Restricted Share Unit Awards (RSU) that were awarded January 21, 2005, andvested January 21, 2010:
		RSU Awards		Accumulated Dividends 		on RSUs(number of				shares issued) (1)(number of				shares issued) (2)
     James C. Thyen, President and Chief Executive Officer47,40015,454
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group13,400 4,369
     Robert F. Schneider, Executive Vice President, Chief Financial Officer13,400 4,369
     John H. Kahle,		Executive Vice President, General Counsel, Secretary13,400 4,369
     Gary W. Schwartz,		Executive Vice President, Chief Information Officer13,400 4,369 
(1) Shares have not been reduced by the		number of shares withheld to satisfy tax withholding obligations.
(2) Represents shares of Class A Common		Stock issued pursuant to the RSU Agreement determined by dividing the		accumulated phantom cash dividends credited to the RSU by the ten-day		average close price ending on the day preceding the vest date. Shares		have not been reduced by the number of shares withheld to satisfy tax		withholding obligations.
**Retirement Plans**The Named Executive Officers participate in a definedcontribution, participant-directed retirement plan with a 401(k) provision thatall domestic employees are eligibleto participate in (the "Retirement Plan"). The Retirement Plan provides forvoluntary employee contributions as well as a discretionary annual Companycontribution based on a percent of net income with certain minimum and maximumlimits as determined annually by the Board of Directors. Each eligible employee's Companycontribution is defined as a percent of eligible compensation, the percent beingidentical for all eligible employees, including Named Executive Officers.Participant contributions are fully vested immediately, and Company contributionsare fully vested after five years of participation. All Named Executive Officersare fully vested. The RetirementPlan is fully funded. For those eligible employees who, under the 1986 TaxReform Act, are deemed to be highly compensated, their individual Companycontribution under the Retirement Plan is reduced. For employees who areeligible, including all Named Executive Officers, there is a nonqualified,Supplemental Employee Retirement Plan (SERP) in which the Company contributes tothe account of each individual an amount equal to the reduction in thecontribution under the Retirement Plan arising from the provisions of the 1986Tax Reform Act. The SERP investment is primarily composed of employeecontributions. 

**Other**The Named ExecutiveOfficers receive nominal benefits such as financial counseling, medicalreimbursement, executive preventive healthcare program, taxpreparation, and othermiscellaneous items.  The Named Executive Officers may use the Companyaircraft for transportation related to the executive preventive healthcareprogram and for limited personal reasons.  The exact amounts received from these benefits arenot predetermined and are disclosed annually in the Company's Proxy Statement.  |
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