**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 (the"Named Executive Officers") of the Company as identified in the Company's mostrecent ProxyStatement filed with the Securities and Exchange Commission.  

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 ("the 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$810,836
     Douglas A. Habig, Chairman of the Board$170,040
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group$505,596
     P. Daniel Miller, Executive Vice President, President-Furniture$499,252
     Robert F. Schneider, Executive Vice President, Chief Financial Officer$409,292
**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 year2009 except for Douglas A. Habig. Effective July 1, 2008, Douglas A. Habig no longerparticipates in the Plan. 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 2009 results is listed below. The Named Executive Officers receivedan installment of 50% of the payment in August 2009,12.5% was paid in September 2009, and the remaining portions will be paid in equal installments in January 2010, April 2010, and June 2010.

     James C. Thyen, President and Chief Executive Officer$ 68,699
     Douglas A. Habig, Chairman of the Board$       -0-
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group $		10,370
     P. Daniel Miller, Executive Vice President, President-Furniture$ 78,452
     Robert F. Schneider, Executive Vice President, Chief Financial Officer$ 33,492
**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 2009 to the Company's Named Executive Officerspursuant to their fiscal year 2009performance share awards:
APS AwardLTPS Award(number of				shares issued) (1)(number of				shares issued) (1)
     James C. Thyen, President and Chief Executive Officer6,35612,784
     Douglas A. Habig, Chairman of the Board        -0-  4,152
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group    		80 		3,784
     P. Daniel Miller, Executive Vice President, President-Furniture  		640 		2,144
     Robert F. Schneider, Executive Vice President, Chief Financial Officer  		320 		2,144
(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 2009 to the Company's Named Executive Officers for fiscal year 2010:  
APS AwardLTPS Award(number of shares)(number of shares)
     James C. Thyen, President and Chief Executive Officer143,000183,000
     Douglas A. Habig, Chairman of the Board          -0-          -0-
     Donald D. Charron, Executive Vice President, President-Kimball Electronics Group  		7,500 54,300
     P. Daniel Miller, Executive Vice President, President-Furniture  		7,500 44,300
     Robert F. Schneider, Executive Vice President, Chief Financial Officer  		7,500 54,300
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.

**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 as determined by the Board of Directorswhich automatically lowers total compensation expense when profits are down. 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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