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                                                                    Exhibit 10.1


                      AMENDMENT TO AGREEMENT OF EMPLOYMENT


         THIS AMENDMENT TO AGREEMENT OF EMPLOYMENT is made and entered into as
of September 1, 1999 by and between BALDWIN PIANO & ORGAN COMPANY, a Delaware
corporation having its principal office at 4680 Parkway Drive, Suite 200,
Mason, Ohio 45040-7198 (the "Company") and KAREN L. HENDRICKS (the "Employee").

                              W I T N E S S E T H :

         WHEREAS, the Employee is currently employed as the Company's Chairman
of the Board of Directors, Chief Executive Officer and President pursuant to an
Agreement of Employment dated as of June 19, 1997 (the "Employment Agreement");
and

         WHEREAS, the Company and the Employee mutually desire to continue the
employment of the Employee as the Company's Chairman of the Board of Directors,
Chief Executive Officer and President; and

         WHEREAS, the Company and the Employee mutually desire to make certain
amendments to the Agreement to set forth the mutual understandings as to the
terms and conditions of the Employee's continued employment by the Company.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties agree to amend the existing Employment Agreement
in the following respects:

1.       AMENDMENT TO SECTION 3 - TERM.

         The existing Section 3 shall be deleted in its entirety and replaced
         with the following:

         3.       TERM. Employee's term of employment with the Company pursuant
                  to this Agreement shall begin as of September 1, 1999 (the
                  "Commencement Date") and shall continue through August 31,
                  2002, and, thereafter, without a specified term, until
                  terminated by the Company or Employee pursuant to Section 5
                  hereof.

2.       AMENDMENT TO SUBSECTION 4.4 - RESTRICTED STOCK.

         The existing subsection 4.4(e) shall be deleted in its entirety and
replaced with the following:

         (e)      By grant dated March 29, 1999, the Employee was awarded 10,000
                  additional shares of Restricted Stock, which vest on January
                  2, 2002. In the discretion of the Committee, the Employee may
                  receive additional grants of Restricted Stock. All restricted
                  stock grants, whether currently outstanding or made in the
                  future, shall be included within the term "Restricted Stock"
                  for the purposes of subsections 4.4(b), (c) and (d) hereof.


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3.       AMENDMENT TO SUBSECTION 5.1 - TERMINATION OF AGREEMENT- WITHOUT CAUSE.

         The existing Subsection 5.1 shall be deleted in its entirety and
         replaced with the following:

         5.1      Without Cause. The Company may terminate Employee's employment
                  at any time, whether or not for cause (as "cause" is defined
                  in Section 5.2. below). In the event the Company terminates
                  Employee's employment without cause, as severance, the Company
                  will continue to pay Employee her normal monthly salary for
                  thirty-six (36) months following Employees' termination, less
                  required withholdings and deductions, provided, however, that
                  at the option of the Employee, the payments to be provided for
                  hereunder shall be paid in a single lump sum payment, to be
                  paid not later than thirty (30) days after the Employee's
                  termination of employment, provided further, that the amount
                  of such lump sum payment shall be determined by taking the
                  severance payments to be made and discounting them to their
                  Present Value, as defined in Employee's Change in Control
                  Agreement. In the event the Company terminates Employee's
                  employment without cause, the Company shall also pay the cost
                  of out-placement services for Employee, up to an amount equal
                  to 15% of Employee's annual bases salary at the time of
                  Employee's termination of employment. The Company shall have
                  no further obligation to the Employee beyond the above
                  payments.

4.       AMENDMENT TO SUBSECTION 5.5.

         The existing Subsection 5.5 shall be deleted in its entirety and
         replaced with the following:

         5.5      (a) By Employee Prior to December 1, 2001. If Employee
                  terminates her employment with the Company for any reason,
                  other than pursuant to all provisions described in Section
                  5.5(b) hereof, Employee shall receive her salary through the
                  effective date of termination and all incentive payments
                  earned but not yet paid to Employee prior to such date, and
                  the Company shall have no further obligation to Employee other
                  than as set forth in Section 4.4 hereof. Such amounts shall be
                  paid by the Company within thirty (30) days from the effective
                  date of such termination.

         5.5      (b) By Employee Subsequent to December 1, 2001 with Notice. If
                  Employee terminates her employment with the Company for any
                  reason:

                           (i) pursuant to a written notice delivered to the
                           Board of Directors on or after December 1, 2001; and

                           (ii) such termination is effective on a date no less
                           than nine (9) months after the receipt by the Board
                           of Directors of such written notice; and

                           (iii) no circumstances which would consititute
                           "cause" as defined in Section 5.6 hereof exist prior
                           to the effective date of the termination of
                           employment; and


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                           (iv) Employee continues to devote her full-time
                           efforts to her responsibilities, as provided in
                           Section 1 hereof, during the time between delivery of
                           the written notice and the effective date of the
                           termination of employment; and

                           (v) Employee cooperates with the Board of Directors
                           in good faith to recruit a qualified successor and,
                           if recruited, to accomplish an effective transition;

                  then, within ten (10) days of the effective date of
                  termination of employment, the Company shall pay Employee the
                  same severance benefit as is provided in Section 5.1 hereof.

5.       REFERENCES TO THIS AGREEMENT AND OTHER AGREEMENTS.

         Any reference to this Agreement or Employment Agreement shall mean the
         Employment Agreement, as amended by this amendment. Any references to
         the Change in Control Agreement, as defined in Section 5.6, shall refer
         to such Change in Control Agreement, as amended.

6.       REAFFIRMATION.

         Except as expressly modified in this Amendment, the Company and the
         Executive hereby ratify and confirm each and every provision of the
         Employment Agreement.

7.       SEVERABILITY.

         If any provision of the Employment Agreement, as amended by this
         Amendment, is held to be unenforceable for any reason, the remainder of
         this Employment Agreement shall, nevertheless, remain in full force and
         effect.

8.       ENTIRE AGREEMENT.

         The terms and provision of the Employment Agreement and this Amendment
         constitute the entire agreement between the Company and the Executive
         with respect to the subject matter hereof. This Amendment may be
         amended or modified only by a written instrument executed by the
         Company and the Executive.

9.       GOVERNING LAW.

         This Amendment shall be governed in all respects by the law of the
         State of Ohio.


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         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

                                             BALDWIN PIANO & ORGAN COMPANY


                                             By: /s/ William Connell
                                                ------------------------

                                             Printed Name: William Connell
                                                          --------------

                                             Title: Director
                                                   ---------------------



                                             EMPLOYEE

                                                 /s/ Karen L. Hendricks
                                                ------------------------
                                                     KAREN L. HENDRICKS


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