Sec Form 4 Filing - NICHOLSON LONNIE P @ KIMBALL INTERNATIONAL INC - 2016-06-30

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person NICHOLSON LONNIE P 2. Issuer Name and Ticker or Trading Symbol KIMBALL INTERNATIONAL INC [ KBAL] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) VICE PRESIDENT (Last) (First) (Middle) 1600 ROYAL STREET 3. Date of Earliest Transaction (MM/DD/YY) 06/30/2016 (Street) JASPER, IN47549 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price CLASS B COMMON STOCK 06/30/2016 M 812 A $ 0 28,762 D CLASS B COMMON STOCK 06/30/2016 A 16 ( 1 ) A $ 0 28,778 D CLASS B COMMON STOCK 06/30/2016 F 261 ( 2 ) D $ 11.1675 28,517 D CLASS B COMMON STOCK 2,004 I SPOUSE

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares RESTRICTED STOCK UNITS ( 3 ) 06/30/2016 M 812 ( 4 ) ( 4 ) CLASS B COMMON STOCK 812 $ 0 1,624 D RESTRICTED STOCK UNITS ( 3 ) 07/01/2016 A 3,480 ( 5 ) ( 6 ) CLASS B COMMON STOCK 3,480 $ 0 ( 7 ) 5,104 ( 8 ) D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other NICHOLSON LONNIE P 1600 ROYAL STREET JASPER, IN47549 VICE PRESIDENT Signatures James M. Krodel, Attorney-in-Fact and Agent 07/05/2016 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Represents shares of Class B Common Stock acquired pursuant to the Restricted Stock Unit Award Agreement between the reporting person and Kimball International Inc. (the "Company"), determined by dividing the accumulated phantom cash dividends credited to the restricted stock units by the closing sales price of one share of Class B Common Stock on the vest date. ( 2 )Represents shares withheld by the Company to satisfy tax withholding obligations on the vesting of the restricted stock units. ( 3 )The Restricted Stock Units convert on a one-for-one basis into shares of Class B Common Stock. ( 4 )Represents Restricted Stock Units granted in prior years and vest on 6/30/16 (812 shares). ( 5 )Represents Restricted Stock Units granted on 7/1/16 and vest on 6/30/19 (3,480 shares). ( 6 )The Restricted Stock Units expire if the reporting person ceases employment for any reason other than death, retirement or total permanent disability. ( 7 )Not Applicable. ( 8 )Represents Restricted Stock Units which vest on 6/30/17 (812 shares), 6/30/18 ( 812 shares) and 6/30/19 (3,480 shares).

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

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