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Exhibit 4.1(d)    
    

THIRD SUPPLEMENTAL INDENTURE  

        This Third Supplemental Indenture, dated as of October 2, 2007 (this "Third Supplemental Indenture"), among
Terramina LLC (the "New Guarantor"), Kimball Hill, Inc. (together with its successors and assigns, the
"Company"), each other existing Guarantor under the Indenture referred to below (the "Existing
Guarantors"), and U.S. Bank National Association (the "Trustee"), as Trustee under the Indenture referred to below. Capitalized
terms used and not defined herein shall have the same meanings given in the Indenture unless otherwise indicated. 

W I T N E S S E T H:  

        WHEREAS, the Company and the Trustee have heretofore executed and delivered an Indenture, dated as of December 19, 2005 (as amended, supplemented, waived
or otherwise modified, the "Indenture"), providing for the issuance of 101/2% Senior Subordinated Notes due 2012 of the Company (the
"Notes"); 

        WHEREAS,
pursuant to Section 4.13 of the Indenture, if the Company acquires or creates any additional Subsidiary which is a Restricted Subsidiary, each such Subsidiary shall
execute and deliver a supplemental indenture pursuant to which such Subsidiary shall unconditionally guarantee the Company's obligations under the Notes and the Indenture; 

        WHEREAS,
the New Guarantor is a Restricted Subsidiary of the Company; 

        WHEREAS,
the Company and the Trustee desire to have the New Guarantor enter into this Third Supplemental Indenture and agree to guarantee the obligations of the Company under the
Indenture and the Notes and the
New Guarantor desires to enter into this Third Supplemental Indenture and to guarantee the obligations of the Company under the Indenture and the Notes as of such date; 

        WHEREAS,
Section 8.01 of the Indenture provides that the Company, the Existing Guarantors and the Trustee may, without the written consent of the Holders of the outstanding Notes,
amend the Indenture as provided herein; 

        WHEREAS,
by entering into this Third Supplemental Indenture, the Company and the Trustee have consented to amend the Indenture in accordance with the terms and conditions herein; 

        WHEREAS,
each Existing Guarantor hereby acknowledges and consents to amend the Indenture in accordance with the terms and conditions herein; and 

        WHEREAS,
all acts and things prescribed by the Certificate of Formation and Amended and Restated Limited Liability Company Agreement of the New Guarantor (as now in effect) necessary to
make this Third Supplemental Indenture a valid instrument legally binding on the New Guarantor for the purposes herein expressed, in accordance with its terms, have been duly done and performed. 

        NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Guarantor, the Company and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 

        Section 1.    Agreement to be Bound.    The New Guarantor hereby becomes a party to the Indenture as a
Guarantor and as such will have all of the rights and be subject to all of the obligations and agreements of a Guarantor under the Indenture. The New Guarantor agrees to be bound by all of the
provisions of the Indenture applicable to a Guarantor and to perform all of the obligations and agreements of a Guarantor under the Indenture. 

        Section 2.    Compliance with and Fulfillment of Condition of Section 4.13.    The execution and
delivery of this Third Supplemental Indenture and the Notation of Guarantee by the New Guarantor (along with such documentation relating thereto as the Trustee shall require) fulfills the obligations
of the Company under Section 4.13 of the Indenture. 

        Section 3.    Ratification of Indenture; Supplemental Indenture Part of Indenture; Trustee's
Disclaimer.    Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall
remain in full force and effect. This Third Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and
delivered shall be 

1

 

bound
hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Third Supplemental Indenture. 

        Section 4.    Governing Law.    THIS THIRD SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK. 

        Section 5.    No Adverse Interpretation of Other Agreements.    This Third Supplemental Indenture may not be
used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries (other than the Indenture). No such indenture, loan or debt agreement may be used to interpret this
Third Supplemental Indenture or the Indenture. 

        Section 6.    Successors.    This Third Supplemental Indenture shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns. 

        Section 7.    Separability.    Each provision of this Third Supplemental Indenture shall be considered
separable and if for any reason any provision which is not essential to the effectuation of the basic purpose of this Third Supplemental Indenture or the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        Section 8.    Counterpart Originals.    The parties may sign multiple counterparts of this Third Supplemental
Indenture. Each signed counterpart shall be deemed an original, but all of them together represent one and the same agreement. 

        Section 9.    Headings, etc.    The headings of the Sections of this Third Supplemental Indenture have been
inserted for convenience of reference only, are not to be considered a part of this Third Supplemental Indenture and shall in no way modify or restrict any of the terms or provisions hereof. 

*    *    *    *    * 

2

        IN
WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the date Third above written. 

	

 	
 	
TERRAMINA LLC, as a Guarantor
	

 	
 	

By:	
 	

Kimball Hill Homes Nevada, Inc., its Manager
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman and Chief Executive Officer
	

 	
 	
KIMBALL HILL, INC.
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman, Chief Executive Officer and Director

Signature Page to Third Supplemental Indenture  

	

 	
 	
CACTUS HILLS, LLC

KIMBALL HILL HOMES TEXAS INVESTMENTS, L.L.C.

KIMBALL HILL HOMES TEXAS OPERATIONS, L.L.C.

KIMBALL HILL TEXAS INVESTMENT COMPANY, L.L.C.

KIMBALL HILL FAR EAST DETROIT, LLC

KH FINANCIAL HOLDING COMPANY

KHH TEXAS TRADING COMPANY L.P.

KIMBALL HILL HOMES AUSTIN, L.P.

KIMBALL HILL HOMES CALIFORNIA, INC.

KIMBALL HILL HOMES DALLAS, L.P.

KIMBALL HILL HOMES FLORIDA, INC.

KIMBALL HILL HOMES HOUSTON, L.P.

KIMBALL HILL HOMES ILLINOIS, LLC

KIMBALL HILL HOMES NEVADA, INC.

KIMBALL HILL HOMES OHIO, INC.

KIMBALL HILL HOMES OREGON, INC.

KIMBALL HILL HOMES REALTY FLORIDA, INC.

KIMBALL HILL HOMES SAN ANTONIO, L.P.

KIMBALL HILL HOMES TEXAS, INC.

KIMBALL HILL HOMES WASHINGTON, INC.

KIMBALL HILL HOMES WISCONSIN, INC.

NATIONAL CREDIT AND GUARANTY CORPORATION

RIVER OAKS REALTY, L.P.

18TH AND PEORIA, LLC

KIMBALL HILL SUBURBAN CENTERS, L.L.C.

KIMBALL HILL URBAN CENTERS, L.L.C.

KIMBALL HILL URBAN CENTERS CHICAGO ONE, L.L.C.

KIMBALL HILL URBAN CENTERS CHICAGO TWO, L.L.C.
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman and Chief Executive Officer
	

 	
 	
STONEHILL SQUARE LLC, as a Guarantor
	

 	
 	

By:	
 	

Kimball Hill, Inc., its Sole Member
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman, Chief Executive Officer and Director

	

 	
 	
EAST LAKE PARK, INC.

KIMBALL HILL STATEWAY, INC.
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    President
	

 	
 	
KIMBALL HILL BELLEVUE RANCH, LLC

KIMBALL HILL REFLECTIONS, LLC

KIMBALL HILL SHELDON LAKES, LLC

KIMBALL HILL VILLAGES, LLC
	

 	
 	

By:	
 	

Kimball Hill Homes California, Inc., its manager
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman Chief Executive Officer
	

 	
 	
KIMBALL HILL TX PROPERTIES, LLC
	

 	
 	

By:	
 	

Kimball Hill Homes Houston, L.P., its manager
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman and Chief Executive Officer
	

 	
 	
THE HAMILTON PLACE PARTNERSHIP
	

 	
 	

By:	
 	

Kimball Hill Homes Illinois, LLC, its general partner
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman and Chief Executive Officer

	

 	
 	
KH INGHAM PARK SOUTH, LLC

KH SRAV II, LLC
	

 	
 	

By:	
 	

Kimball Hill Homes Illinois, LLC, its manager
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman and Chief Executive Officer
	

 	
 	
RIVER OAKS HOMES, LLP
	

 	
 	

By:	
 	

Kimball Hill Homes Texas, Inc., its manager
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman and Chief Executive Officer

	

 	
 	
BRIDLE RIDGE LIMITED PARTNERSHIP

PARKVIEW LIMITED PARTNERSHIP

RIVER POINTE LIMITED PARTNERSHIP

SONATA AT MORADA RANCH LIMITED PARTNERSHIP

WINDMILL PARK LIMITED PARTNERSHIP

KIMBALL HILL CHADWICK FARMS LIMITED PARTNERSHIP

KIMBALL WEST FRISCO LIMITED PARTNERSHIP

KIMBALL HILL CALUSA PALMS LIMITED PARTNERSHIP

KIMBALL HILL MARBELLA ESTATES LIMITED PARTNERSHIP

INDIAN TRAILS LIMITED PARTNERSHIP

ASTOR PLACE LIMITED PARTNERSHIP

BOLINGBROOK LIMITED PARTNERSHIP

EDGEWATER LIMITED PARTNERSHIP

HUNTINGTON CHASE LIMITED PARTNERSHIP

LEGEND LAKES LIMITED PARTNERSHIP

WATERFORD LIMITED PARTNERSHIP

WHISPERING MEADOW LIMITED PARTNERSHIP

WHITE OAK LIMITED PARTNERSHIP

KIMBALL HILL CENTENNIAL HEIGHTS LIMITED PARTNERSHIP

KIMBALL HILL HEATHERS/CAPAROLA LIMITED PARTNERSHIP

KIMBALL MOUNTAIN FIRST LIMITED PARTNERSHIP

KIMBALL COVE LIMITED PARTNERSHIP

GABLES AT HIDDENBROOK LIMITED PARTNERSHIP

PARK SHORE, L.L.C.

KIMBALL HILL URBAN CENTERS SPECIAL PURPOSES, L.L.C.
	

 	
 	

By:	
 	

/s/ David K. Hill
 Name: David K. Hill

Title:    Chairman Chief Executive Officer
	

 	
 	
U.S. BANK NATIONAL ASSOCIATION, as Trustee
	

 	
 	

By:	
 	

/s/ Richard Prokosch
 Name: Richard Prokosch

Title:    Vice President

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Exhibit 10.11    
    

[LETTERHEAD] 

October 2,
2006 

Mr. Robert
J. Ryan

5350 Wind Point Road

Racine, WI 53402 

Dear
Bob: 

        Confirming
our discussions of last week, I am pleased to offer you the opportunity to join Kimball Hill, Inc. as our Senior Vice President of Human Resources. In that capacity, you will
be responsible for overseeing and managing the human resources function for our dynamic and diverse organization. Your base salary will be $300,000 per year (payable on a semi-monthly basis) and will
be subject to annual review. In addition, you will be eligible for an annual bonus, payable after the close of our fiscal year (which presently ends September 30). The amount of your bonus
generally will be based on two factors: (1) company performance, measured by achievement of the company's annual business plan and other company goals; and (2) your individual
performance, based upon your achievement of goals and targets to be mutually established between us. Nevertheless, for our 2007 fiscal year (ending September 30, 2007), your bonus will be
guaranteed at $150,000. 

        You
will be eligible to participate in the company's employee benefits programs that are available to all employees from time to time, in accordance with the specific terms of each plan
or program. Specifically: 

	•
	Eligibility
to participate in the company-paid life insurance program.

	•
	Eligibility
for health and dental coverage.

	•
	Eligibility
to enroll in the company's Section 401(k) plan.

	•
	Eligibility
to enroll in flexible spending accounts and other voluntary benefits, including short-term disability, group term life insurance and critical care coverage.

	•
	Nine
and one half company-paid holidays per year. 

        You
will be eligible for annual vacation. Although our normal annual vacation allowance for new employees is two weeks, you will be given credit for prior service and accordingly will be
entitled to 20 days of annual vacation. Your vacation time will be accrued on a monthly basis in accordance with the company's established procedures. 

        In
addition, the company will pay your moving costs and other relocation expenses that you incur in moving your family from your present residence in Wisconsin to the Chicagoland area,
subject to a maximum reimbursement of $50,000. Please review your relocations expenses with me before you incur them so that we can be sure that they fall within the company's established guidelines. 

        As
you know, Kimball Hill, Inc. does not have a long-term incentive compensation program, and there is no assurance that one will be implemented in the future. However, if the company
decides to implement a long-term incentive compensation program, you will be eligible as a member of the company's senior management team to participate on the same basis as other members of senior
management. 

        You
recognize that Kimball Hill, Inc. is an at-will employer and that no contract or guarantee of continued employment is expressed with this offer. Nevertheless, should the Company
elect to terminate your employment, at any time within five years after commencement of your employment for reasons other than "good cause," you will be entitled to severance compensation equal to
nine months of your then current base salary. "Good cause" shall include, among other things, material misconduct by you in performing your duties, commission of fraud or other breach of your
fiduciary duties to the company, a material violation of company policies, or a continuing and material failure to perform your duties. 

        Bob,
on a personal note, I would like you to know how delighted Dave and I would be for you to join our company. Your background and experience are well-suited for the challenges you
will face here. What most impressed Dave and me are your personal qualities, which will dovetail with the type of organization that we are trying to develop and nuture. 

        Our
target date for you to join Kimball Hill, Inc. is October 23. Accordingly, we would appreciate a prompt response, preferably no later than the end of this week. However, if
that should create any problems, please call me. 

	 	 	Sincerely,
	

 	
 	

/s/ C. Kenneth Love
	

 	
 	

C. Kenneth Love

Vice Chairman and President

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Exhibit 10.11

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