Document:

<PAGE>   1
EXHIBIT 10.25
-------------

                WAIVER AND SEVENTH AMENDMENT TO CREDIT AGREEMENT

     THIS WAIVER AND SEVENTH AMENDMENT TO CREDIT AGREEMENT ("Seventh Amendment")
dated as of December 3, 1999 is by and among BALDWIN PIANO & ORGAN COMPANY, a
Delaware corporation, (hereinafter, together with its successors in title and
assigns called "Borrower" or "Baldwin"), FIFTH THIRD BANK, an Ohio banking
corporation, as Agent (in such capacity, the "Agent"), FIFTH THIRD BANK ("Fifth
Third"), as a Lender, and BANK ONE, INDIANA, N.A., formerly known as NBD BANK,
N.A., a national banking association, ("Bank One") as a Lender, (Fifth Third and
Bank One are hereinafter collectively the "Lenders" and each individually a
"Lender").

                              PRELIMINARY STATEMENT
                              ---------------------

     WHEREAS, Borrower, Agent and Lenders have entered into a Credit Agreement
dated as of October 16, 1997, as amended by a First Amendment dated as of
October 16, 1997, a Second Amendment dated as of April 27, 1998, a Third
Amendment dated June 19, 1998, a Fourth Amendment dated September 21, 1998, a
Fifth Amendment dated January 29, 1999, and a Sixth Amendment dated July 15,
1999 (collectively, the "Credit Agreement"); and

     WHEREAS, Borrower has requested Agent and Lenders to make various revisions
to the Credit Agreement as set forth herein; and

     WHEREAS, Borrower, Agent and Lenders now wish to amend the Credit Agreement
in accordance with the terms and provisions hereof;

     NOW, THEREFORE, the parties hereto agree to supplement and amend the Credit
Agreement upon such terms and conditions as follows:

     1. CAPITALIZED TERMS. All capitalized terms used herein shall have the
meanings assigned to them in the Credit Agreement unless the context hereof
requires otherwise. Any definitions as capitalized terms set forth herein shall
be deemed incorporated into the Credit Agreement as amended by this Seventh
Amendment.

     2. DEFINITIONS. The following definition contained in Section 1.2 of the
Credit Agreement is hereby amended and restated in its entirety as follows:

     "INTEREST RATE" means the rate of interest per annum equal to the Prime
Rate.

     3. WAIVER. (a) The Agent and the Lenders hereby consent to waive the
application of Section 10.3(a)(iv) of the Credit Agreement solely as it relates
to the four quarter period ending September 30, 1999; PROVIDED, HOWEVER, that
this waiver shall expire on the earlier of (i) the date Lenders shall have
received satisfactory evidence, in form and substance satisfactory to Lenders,
of the sale by Borrower of all of the stock of Keyboard Acceptance Corporation
(f/k/a BPO Finance

<PAGE>   2

                                      -2-

Corporation), a Delaware corporation and a subsidiary of Borrower, pursuant to
that certain Stock Purchase Agreement dated as of December 8, 1999 between
Borrower and Deutsche Financial Services Corporation (the "Purchase Agreement"),
(ii) the failure of Borrower to consummate the transactions contemplated by the
Purchase Agreement, and (iii) February 28, 2000.

     (b) The Agent and the Lenders hereby consent to waive the application of
Section 10.3(a)(iv) of the Credit Agreement solely as it relates to the four
quarter period ending December 31, 1999; PROVIDED, HOWEVER, that this waiver
shall expire on the earlier of (i) the date Lenders shall have received
satisfactory evidence, in form and substance satisfactory to Lenders, of the
sale by Borrower of all of the stock of Keyboard Acceptance Corporation (f/k/a
BPO Finance Corporation), a Delaware corporation and a subsidiary of Borrower,
pursuant to that certain Stock Purchase Agreement dated as of December 8, 1999
between Borrower and Deutsche Financial Services Corporation (the "Purchase
Agreement"), (ii) the failure of Borrower to consummate the transactions
contemplated by the Purchase Agreement, and (iii) February 28, 2000.

     4. Section 3.1 of the Credit Agreement is hereby amended to read in its
entirety as follows:

        "Section 3.1. TOTAL CREDIT FACILITY. In consideration of Baldwin's
     payment and performance of its Obligations and subject to the terms and
     conditions contained in this Credit Agreement, the Lenders agree to
     provide, and Baldwin agrees to accept, an aggregate credit facility of up
     to Thirty-Five Million and 00/100 Dollars ($35,000,000.00) (the "TOTAL
     CREDIT"), subject to the terms and conditions hereof (the "CREDIT
     FACILITY"). No Loans need be made by the Lenders if Baldwin is in Default
     or if there exists any Unmatured Default. This is an agreement regarding
     the extension of credit, and not the provision of goods or services."

     5. ELIGIBLE ACCOUNTS AND ELIGIBLE INVENTORY. Section 3.2(a)(i) and Section
3.2(a)(ii) of the Credit Agreement are hereby amended to in their entirety to
read as follows:

        "(i) ELIGIBLE ACCOUNTS. On receipt of each Borrowing Base Certificate,
     in the form of Exhibit C, together with such supporting information as
     Agent may require from time to time (the "BORROWING BASE CERTIFICATE"),
     Agent will credit Baldwin with the lesser of: (i) eighty-five percent (85%)
     of the net amount of the Eligible Accounts which are, absent error or other
     discrepancy, listed in such Borrowing Base Certificate ("ELIGIBLE ACCOUNT
     AVAILABILITY"); and (ii) Fifteen Million and 00/100 Dollars
     ($15,000,000.00). For purposes hereof, the net amount of Eligible Accounts
     at any time shall be the face amount of such Eligible Accounts LESS any and
     all returns, discounts (which may, at Agent's option, be calculated on
     shortest terms), credits, rebates, allowances, or excise taxes of any
     nature at any time issued, owing, claimed by Account Debtors, granted,
     outstanding, or payable in connection with such Accounts at such time.
<PAGE>   3

                                      -3-

             (ii) ELIGIBLE INVENTORY. On receipt of each Borrowing Base
          Certificate, Agent will credit Baldwin with the lesser of: (i)
          seventy-five percent (75%) of the Value of Eligible Inventory which
          is, absent error or other discrepancy, listed in such Borrowing Base
          Certificate, and (ii) Thirty Million Dollars and 00/100 Dollars
          ($30,000,000.00)."

     6. SALE OR TRANSFER OF ASSETS. Section 10.2(b) of the Term Loan Agreement
is hereby amended in its entirety to read as follows:

        (b) SALE OR TRANSFER OF ASSETS. Except in the ordinary course of
     business or except as consented to in writing by Agent, or except for sales
     to a Lender or any affiliate thereof or except for sales to and by KAC as
     contemplated by the Permitted Securitization Documents, or except for sales
     to Deutsche Financial Services Corporation of finished inventory pursuant
     to the Amended and Restated Inventory Purchase and Consignment Agreement
     entered into by and between Borrower and Deutsche Financial Services
     Corporation as of June 30, 1998, as amended on January 13, 2000 which such
     agreement shall be in form and substance satisfactory to Agent, provided
     that, after giving effect to such sale, Deutsche Financial Services
     Corporation does not own Retail Consigned Goods (as defined therein)
     purchased from Borrower pursuant to this subsection with an aggregate value
     greater than $5,000,000 or Consigned Goods (as defined therein) purchased
     from Borrower pursuant to this subsection with an aggregate value greater
     than $20,000,000, Baldwin and the Subsidiaries will not sell, transfer,
     lease (including sale-leaseback) or otherwise dispose of all or any
     substantial part of their assets; provided, however, that any sales of Sold
     Accounts by Baldwin to KAC under the Permitted Securitization
     Documentation, and sales, contributions or other transfers of Sold Accounts
     under the Permitted Securitization Documentation by KAC, shall be
     permitted. This provision will not apply to any sale if the proceeds of
     such sale pay the Obligations in full.

     7. REAFFIRMATION OF COVENANTS, WARRANTIES AND REPRESENTATIONS. Borrower
hereby agrees and covenants that all representations and warranties in the
Credit Agreement, including without limitation all of those warranties and
representations set forth in Article 9, are true and accurate as of the date
hereof. Borrower further reaffirms all covenants in the Credit Agreement, and
reaffirm each of the affirmative covenants set forth in Section 10.1, the
negative covenants set forth in Section 10.2 and the financial covenants set
forth in Section 10.3 thereof, as if fully set forth herein, except to the
extent modified by this Seventh Amendment.

     8. CONDITIONS PRECEDENT TO CLOSING OF SEVENTH AMENDMENT. On or prior to the
closing of the Seventh Amendment (hereinafter the "Seventh Amendment Closing
Date"), each of the following conditions precedent shall have been satisfied:

          (a) PROOF OF CORPORATE AUTHORITY. Agent shall have received from
     Borrower copies, certified by a duly authorized officer to be true and
     complete on and as of the Seventh Amendment Closing Date, of records of all
     action taken by Borrower to authorize (i) the

<PAGE>   4

                                      -4-

     execution and delivery of this Seventh Amendment and all other
     certificates, documents and instruments to which it is or is to become a
     party as contemplated or required by this Seventh Amendment, and (ii) its
     performance of all of its obligations under each of such documents.

          (b) DOCUMENTS. Each of the documents to be executed and delivered at
     the Seventh Amendment Closing and all other certificates, documents and
     instruments to be executed in connection herewith shall have been duly and
     properly authorized, executed and delivered by Borrower and shall be in
     full force and effect on and as of the Seventh Amendment Closing Date.

          (c) LEGALITY OF TRANSACTIONS. No change in applicable law shall have
     occurred as a consequence of which it shall have become and continue to be
     unlawful (i) for Agent and each Lender to perform any of its agreements or
     obligations under any of the Loan Documents, or (ii) for Borrower to
     perform any of its agreements or obligations under any of the Loan
     Documents.

          (d) PERFORMANCE, ETC. Except as set forth herein, Borrower shall have
     duly and properly performed, complied with and observed each of its
     covenants, agreements and obligations contained in each of the Loan
     Documents. Except as set forth herein, no event shall have occurred on or
     prior to the Seventh Amendment Closing Date, and no condition shall exist
     on the Seventh Amendment Closing Date, which constitutes a Default or an
     Event of Default.

          (e) CHANGES; NONE ADVERSE. Since the date of the most recent balance
     sheets of Borrower delivered to Agent, no changes shall have occurred in
     the assets, liabilities, financial condition, business, operations or
     prospects of Borrower which, individually or in the aggregate, are material
     to Borrower, and Agent shall have completed such review of the status of
     all current and pending legal issues as Agent shall deem necessary or
     appropriate.

     9. MISCELLANEOUS. (a) Borrower shall reimburse Agent for all fees and
disbursements of legal counsel to Agent which shall have been incurred by Agent
in connection with the preparation, negotiation, review, execution and delivery
of this Seventh Amendment and the handling of any other matters incidental
hereto.

        (b) All of the terms, conditions and provisions of the Agreement not
herein modified shall remain in full force and effect. In the event a term,
condition or provision of the Agreement conflicts with a term, condition or
provision of this Seventh Amendment, the latter shall govern.

        (c) This Seventh Amendment shall be governed by and shall be construed
and interpreted in accordance with the laws of the State of Ohio.
<PAGE>   5

                                      -5-

        (d) This Seventh Amendment shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, successors and
assigns.

        (e) This Seventh Amendment may be executed in several counterparts,
each of which shall constitute an original, but all which together shall
constitute one and the same agreement.

      [Remainder of page intentionally left blank. Signature page follows.]

<PAGE>   6

     IN WITNESS WHEREOF, this Seventh Amendment has been duly executed and
delivered by or on behalf of each of the parties as of the day and in the year
first above written.

                                     BALDWIN PIANO & ORGAN COMPANY,
                                     Borrower

                                     By: /s/ Duane Kimble
                                         ----------------------------------
                                     Name: Duane Kimble
                                           --------------------------------
                                     Title: Executive VP, CFO and Secretary
                                            -------------------------------

                                     FIFTH THIRD BANK, Agent

                                     By: /s/ Robert C. Ries
                                         ----------------------------------
                                     Name: Robert C. Ries
                                           --------------------------------
                                     Title: Vice President
                                            -------------------------------

                                     FIFTH THIRD BANK, Lender

                                     By: /s/ Robert C. Ries
                                         ----------------------------------
                                     Name: Robert C. Ries
                                           --------------------------------
                                     Title: Vice President
                                            -------------------------------

                                     BANK ONE, INDIANA, N. A., Lender

                                     By: /s/Edward C. Hathaway
                                         ---------------------------------
                                     Name: Edward C. Hathaway
                                           -------------------------------
                                     Title: First Vice President
                                            ------------------------------

<PAGE>   7

The undersigned, guarantors of the obligations of Baldwin Piano & Organ Company
under the Credit Agreement, hereby acknowledge and accept the above Seventh
Amendment and the terms and conditions therein.

SIGNATURE LEASING COMPANY

By: /s/ Duane Kimble
    ----------------------------------
Name: Duane Kimble
      --------------------------------
Title: Executive Vice President, CFO and Secretary
       -------------------------------------------

BALDWIN TRADING COMPANY

By: /s/ Duane Kimble
    ----------------------------------
Name: Duane Kimble
      --------------------------------
Title: Executive Vice President, CFO and Secretary
       -------------------------------------------

BALDWIN PIANO COMPANY (CANADA) LIMITED

By: /s/ Duane Kimble
    ----------------------------------
Name: Duane Kimble
      --------------------------------
Title: Executive Vice President, CFO and Secretary
       -------------------------------------------

THE WURLITZER COMPANY

By: /s/ Duane Kimble
    ----------------------------------
Name: Duane Kimble
      --------------------------------
Title: Executive Vice President, CFO and Secretary
       -------------------------------------------<PAGE>   1
EXHIBIT 10.26
-------------

                 WAIVER AND EIGHTH AMENDMENT TO CREDIT AGREEMENT

      THIS WAIVER AND EIGHTH AMENDMENT TO CREDIT AGREEMENT ("Eighth Amendment")
dated as of February 28, 2000 is by and among BALDWIN PIANO & ORGAN COMPANY, a
Delaware corporation, (hereinafter, together with its successors in title and
assigns called "Borrower" or "Baldwin"), FIFTH THIRD BANK, an Ohio banking
corporation, as Agent (in such capacity, the "Agent"), FIFTH THIRD BANK ("Fifth
Third"), as a Lender, and BANK ONE, INDIANA, N.A., formerly known as NBD BANK,
N.A., a national banking association, ("Bank One") as a Lender, (Fifth Third and
Bank One are hereinafter collectively the "Lenders" and each individually a
"Lender").

                              PRELIMINARY STATEMENT
                              ---------------------

      WHEREAS, Borrower, Agent and Lenders have entered into a Credit Agreement
dated as of October 16, 1997, as amended by a First Amendment dated as of
October 16, 1997, a Second Amendment dated as of April 27, 1998, a Third
Amendment dated June 19, 1998, a Fourth Amendment dated September 21, 1998, a
Fifth Amendment dated January 29, 1999, and a Sixth Amendment dated July 15,
1999, and a Waiver and Seventh Amendment dated December 3, 1999 (collectively,
the "Credit Agreement"); and

      WHEREAS, Borrower has requested Agent and Lenders to make various
revisions to the Credit Agreement as set forth herein; and

      WHEREAS, Borrower, Agent and Lenders now wish to amend the Credit
Agreement in accordance with the terms and provisions hereof;

      NOW, THEREFORE, the parties hereto agree to supplement and amend the
Credit Agreement upon such terms and conditions as follows:

      1.    CAPITALIZED TERMS. All capitalized terms used herein shall have the
meanings assigned to them in the Credit Agreement unless the context hereof
requires otherwise. Any definitions as capitalized terms set forth herein shall
be deemed incorporated into the Credit Agreement as amended by this Eighth
Amendment.

      2.    EXHIBITS. Effective immediately upon consummation of the Sale (as
defined in Section ), the following Exhibits to the Credit Agreement shall be
amended in their entirety to read as the corresponding Exhibits to this Eighth
Amendment:

            (a)    Exhibit C Form of Borrowing Base Certificate

      3.    Effective immediately upon consummation of the Sale (as defined in
Section 7), Section 3.1 of the Credit Agreement shall be amended to read in its
entirety as follows:
<PAGE>   2

                                      -2-

            "Section 3.1. TOTAL CREDIT FACILITY. In consideration of Baldwin's
      payment and performance of its Obligations and subject to the terms and
      conditions contained in this Credit Agreement, the Lenders agree to
      provide, and Baldwin agrees to accept, an aggregate credit facility of up
      to (i) Twenty Million and 00/100 Dollars ($20,000,000.00) on or before
      March 29, 2000 and (ii) Seventeen Million and 00/100 Dollars
      ($17,000,000.00) after March 29, 2000 (the "TOTAL CREDIT"), subject to the
      terms and conditions hereof (the "CREDIT FACILITY"). No Loans need be made
      by the Lenders if Baldwin is in Default or if there exists any Unmatured
      Default (and such Default or Unmatured Default has not been waived by
      Agent and Lenders). This is an agreement regarding the extension of
      credit, and not the provision of goods or services."

      4.    ELIGIBLE ACCOUNTS AND ELIGIBLE INVENTORY. Effective immediately upon
consummation of the Sale (as defined in Section ), Section 3.2(a)(i) and Section
3.2(a)(ii) of the Credit Agreement shall be amended in their entirety to read as
follows:

                  "(i) ELIGIBLE ACCOUNTS. On receipt of each Borrowing Base
            Certificate, in the form of Exhibit C, together with such
            supporting information as Agent may require from time to time (the
            "BORROWING BASE CERTIFICATE"), Agent will credit Baldwin with the
            lesser of: (i) seventy-five percent (75%) of the net amount of the
            Eligible Accounts which are, absent error or other discrepancy,
            listed in such Borrowing Base Certificate ("ELIGIBLE ACCOUNT
            Availability"); and (ii) Eight Million Five Hundred Thousand and
            00/100 Dollars ($8,500,000.00). For purposes hereof, the net amount
            of Eligible Accounts at any time shall be the face amount of such
            Eligible Accounts LESS any and all returns, discounts (which may, at
            Agent's option, be calculated on shortest terms), credits, rebates,
            allowances, or excise taxes of any nature at any time issued, owing,
            claimed by Account Debtors, granted, outstanding, or payable in
            connection with such Accounts at such time.

                  (ii) ELIGIBLE INVENTORY. On receipt of each Borrowing
            Base Certificate, Agent will credit Baldwin with the lesser of: (i)
            sixty-five percent (65%) of the Value of Eligible Inventory which
            is, absent error or other discrepancy, listed in such Borrowing Base
            Certificate, and (ii) Seventeen Million and 00/100 Dollars
            ($17,000,000.00)."

      5.    LETTERS OF CREDIT. Effective immediately upon consummation of the
Sale (as defined in Section ), Article 4 of the Credit Agreement shall be
amended to add Section 4.9 to read in its entirety as follows:

            "Section 4.9 REQUIREMENTS AFTER TERMINATION OF AGREEMENT.
      Upon termination of the Agreement, whether at stated maturity or by
      acceleration, Borrower shall deposit in a non-interest bearing, blocked
      deposit account at Fifth Third Bank to which only the Agent will have
      access (the "LOC Account"), and Agent is hereby authorized to draw,
      advance or disburse under the Agreement, a sum in immediately available
      funds equal to the aggregate

<PAGE>   3

                                      -3-

      amount of all of the issued and outstanding Letters of Credit. The LOC
      Account will secure solely Borrower's obligations under the Letters of
      Credit and Borrower hereby grants to Agent, for the benefit of the
      Lenders, a security interest in such funds and the LOC Account and all
      interest, income, proceeds, investments and reinvestments thereof.
      Borrower agrees that after the termination of the Notes, Agent is hereby
      authorized to liquidate such account (or any part thereof) and apply the
      proceeds as reimbursement for the amount of such drawing or payment under
      or with respect to the Letters of Credit. The LOC Account shall continue
      until such time as the Letters of Credit shall expire or have been
      terminated . At such time, any part of the funds remaining in the Account
      shall be remitted to Borrower and discharged from the security interest
      granted hereby. Notwithstanding the foregoing provisions of this Section
      4.9, Borrower shall not be required to establish the LOC Account or
      deposit funds therein upon termination of this Agreement with respect to
      any issued and outstanding Letter of Credit that is secured by a letter of
      credit from another financial entity reasonably acceptable to Lenders (it
      being understood that General Electric Capital Corporation or First Union
      National Bank, or affiliates of either such entity which issue letters of
      credit in the ordinary course of business, are acceptable to Lenders)."

      6.    CONTINUATION OF WAIVER. (a) The Agent and the Lenders hereby consent
to waive the application of Section 10.3(a)(iv) of the Credit Agreement solely
as it relates to the four quarter period ending September 30, 1999; PROVIDED,
HOWEVER, that this waiver shall expire on the earlier of (i) March 29, 2000 and
(ii) the date on which good faith negotiations between Borrower and General
Electric Capital Corporation for the refinancing of the Loan shall cease.

            (b)   The Agent and the Lenders hereby consent to waive the
application of Section 10.3(a)(iv) of the Credit Agreement solely as it relates
to the four quarter period ending December 31, 1999; PROVIDED, HOWEVER, that
this waiver shall expire on the earlier of (i) March 29, 2000 and (ii) the date
on which good faith negotiations between Borrower and General Electric Capital
Corporation for the refinancing of the Loan shall cease.

      7.    SALE OF KAC AND SIGNATURE LEASING COMPANY. The Agent and the
Lenders hereby consent to the sale by Borrower of all of the stock of (i)
Keyboard Acceptance Corporation (f/k/a BPO Finance Corporation) a Delaware
corporation and a subsidiary of Borrower, and (ii) Signature Leasing Company, an
Ohio corporation and a subsidiary of Borrower, pursuant to that Stock Purchase
Agreement between Borrower and Duetsche Financial Services Corporation and dated
as of December 8, 1999 (the "Sale"); PROVIDED, HOWEVER, that the proceeds of the
Sale shall first be applied in the inverse order of maturity to the payment of
the remaining installments on the Term Loan, and at any time after the Term Loan
shall have been repaid in full, such proceeds shall be applied in repayment of
the Loan. For purposes of this Section , "Term Loan" shall mean the Obligations
as defined in the Amended and Restated Term Loan Agreement dated as of May 15,
1998, by and among Borrower, Agent and the Lenders thereto, as amended by the
First Amendment thereto dated as of July 15, 1999 and the Waiver and Second
Amendment thereto dated as of December 3, 1999.
<PAGE>   4

                                      -4-

      8.    REAFFIRMATION OF COVENANTS, WARRANTIES AND REPRESENTATIONS. Borrower
hereby agrees and covenants that all representations and warranties in the
Credit Agreement, including without limitation all of those warranties and
representations set forth in Article 9, are true and accurate as of the date
hereof. Borrower further reaffirms all covenants in the Credit Agreement, and
reaffirm each of the affirmative covenants set forth in Section 10.1, the
negative covenants set forth in Section 10.2 and the financial covenants set
forth in Section 10.3 thereof, as if fully set forth herein, except to the
extent modified by this Eighth Amendment.

      9.    CONDITIONS PRECEDENT TO CLOSING OF EIGHTH AMENDMENT. On or prior to
the closing of the Eighth Amendment (hereinafter the "Eighth Amendment Closing
Date"), each of the following conditions precedent shall have been satisfied:

            (a)   PROOF OF CORPORATE AUTHORITY. Agent shall have received from
      Borrower copies, certified by a duly authorized officer to be true and
      complete on and as of the Eighth Amendment Closing Date, of records of all
      action taken by Borrower to authorize (i) the execution and delivery of
      this Eighth Amendment and all other certificates, documents and
      instruments to which it is or is to become a party as contemplated or
      required by this Eighth Amendment, and (ii) its performance of all of its
      obligations under each of such documents.

            (b)   DOCUMENTS. Each of the documents to be executed and delivered
      at the Eighth Amendment Closing and all other certificates, documents and
      instruments to be executed in connection herewith shall have been duly and
      properly authorized, executed and delivered by Borrower and shall be in
      full force and effect on and as of the Eighth Amendment Closing Date.

            (c)   LEGALITY OF TRANSACTIONS. No change in applicable law shall
      have occurred as a consequence of which it shall have become and continue
      to be unlawful (i) for Agent and each Lender to perform any of its
      agreements or obligations under any of the Loan Documents, or (ii) for
      Borrower to perform any of its agreements or obligations under any of the
      Loan Documents.

            (d)   PERFORMANCE, ETC. Except as set forth herein, Borrower shall
      have duly and properly performed, complied with and observed each of its
      covenants, agreements and obligations contained in each of the Loan
      Documents. Except as set forth herein, no event shall have occurred on or
      prior to the Eighth Amendment Closing Date, and no condition shall exist
      on the Eighth Amendment Closing Date, which constitutes a Default or an
      Event of Default.

            (e)   CHANGES; NONE ADVERSE. Since the date of the most recent
      balance sheets of Borrower delivered to Agent, no changes shall have
      occurred in the assets, liabilities, financial condition, business,
      operations or prospects of Borrower which, individually or in the
      aggregate, are material to Borrower, and Agent shall have completed such
      review of the status of all current and pending legal issues as Agent
      shall deem necessary or appropriate.
<PAGE>   5

                                      -5-

            (f)   CLOSING FEE. Agent, for the pro rata benefit of the Lenders,
      shall have received a closing fee in the amount of Twenty Thousand and
      00/100 Dollars ($20,000.00).

      10.    MISCELLANEOUS. (a) Borrower shall reimburse Agent for all fees and
disbursements of legal counsel to Agent which shall have been incurred by Agent
in connection with the preparation, negotiation, review, execution and delivery
of this Eighth Amendment and the handling of any other matters incidental
hereto.

             (b) All of the terms, conditions and provisions of the Agreement
not herein modified shall remain in full force and effect. In the event a term,
condition or provision of the Agreement conflicts with a term, condition or
provision of this Eighth Amendment, the latter shall govern.

             (c) This Eighth Amendment shall be governed by and shall be
construed and interpreted in accordance with the laws of the State of Ohio.

             (d) This Eighth Amendment shall be binding upon and shall inure to
the benefit of the parties hereto and their respective heirs, successors and
assigns.

             (e) This Eighth Amendment may be executed in several counterparts,
each of which shall constitute an original, but all which together shall
constitute one and the same agreement.

      [Remainder of page intentionally left blank. Signature page follows.]

<PAGE>   6

      IN WITNESS WHEREOF, this Eighth Amendment has been duly executed and
delivered by or on behalf of each of the parties as of the day and in the year
first above written.

                                      BALDWIN PIANO & ORGAN COMPANY, Borrower

                                      By: /s/ Duane Kimble
                                          --------------------------------
                                      Name: Duane Kimble
                                            ------------------------------
                                      Title: Executive Vice President
                                             -----------------------------

                                      FIFTH THIRD BANK, Agent

                                      By: /s/ Robert C. Ries
                                          --------------------------------
                                      Name: Robert C. Ries
                                            ------------------------------
                                      Title: Vice President
                                             -----------------------------

                                      FIFTH THIRD BANK, Lender

                                      By: /s/ Robert C. Ries
                                          --------------------------------
                                      Name: Robert C. Ries
                                            ------------------------------
                                      Title: Vice President
                                             -----------------------------

                                      BANK ONE, INDIANA, N. A., Lender

                                      By: /s/ Edward C. Hathaway
                                          --------------------------------
                                      Name: Edward C. Hathaway
                                            ------------------------------
                                      Title: First Vice President
                                             -----------------------------

<PAGE>   7

The undersigned, guarantors of the obligations of Baldwin Piano & Organ Company
under the Credit Agreement, hereby acknowledge and accept the above Eighth
Amendment and the terms and conditions therein.

BALDWIN TRADING COMPANY

By: /s/ Duane Kimble
    --------------------------------
Name: Duane Kimble
      ------------------------------
Title: Executive Vice President
       -----------------------------

BALDWIN PIANO COMPANY (CANADA) LIMITED

By: /s/ Duane Kimble
    --------------------------------
Name: Duane Kimble
      ------------------------------
Title: Executive Vice President
       -----------------------------

THE WURLITZER COMPANY

By: /s/ Duane Kimble
    --------------------------------
Name: Duane Kimble
      ------------------------------
Title: Executive Vice President
       -----------------------------

<PAGE>   8

                                                                      EXHIBIT C

                       FORM OF BORROWING BASE CERTIFICATE
                       ----------------------------------

<TABLE>

<S>                                 <C>                                <C>
BALDWIN PIANO & ORGAN COMPANY       Report #                           Today's date
                                            --------------------                   -------------------------
                                                                                   Accounts Reported as of
                                                                                                           ------------------
                                                                                   Inventory Reported as of
                                                                                                            -----------------

-----------------------------------------------------------------------------------------------------------------------------
I.  ELIGIBLE ACCOUNT AVAILABILITY
-----------------------------------------------------------------------------------------------------------------------------
    A.  ELIGIBLE ACCOUNT AVAILABILITY

1.      Accounts                                                                     $
                                                                                      ----------------
        LESS:

2.      From sales of goods and services > 60 Days from
        date of sale, except Biasco                              --------------

3.      Biasco (other than Biasco Special Account),
        Due > 130 Days from date of sale (3/15/99)               --------------

4.       Biasco Special Account (after 3/1/99)                   --------------

5.       Contract Electronics unpaid > 90 Days
         and others > 120 days                                   --------------

6.       Entire Account, if 50% or more unpaid > 90 Days         --------------

7.       Affiliate Accounts                                      --------------

8.       Consignment Receivables > 120 Days                      --------------

9.       Conditional                                             --------------

10.      Non U.S./Canada                                         --------------

11.      Non Reps & Warr. (per section 9.18 of Credit Agreement) --------------

12.      Demonstration/Loan                                      --------------

13.      Progress/Barter/Contra                                  --------------

14.      Personal/family/household                               --------------

15.      Agent Designated Accounts                               --------------

16.      TOTAL INELIGIBLE (sum lines 2 through 15)                                   (            )
                                                                                      ------------

17.      SUBTOTAL                                                                    --------------

18.      LESS: ELIGIBLE ACCOUNT NET AVAILABILITY                                     (            )
         (25% times Line 17)                                                          ------------

19.      TOTAL ELIGIBLE ACCOUNT  AVAILABILITY                                        $
         (Line 17, Less Line 18)                                                      ============

                                                                                                   ---------------
20.      TOTAL CREDIT FOR ELIGIBLE ACCOUNTS
         (Lesser of Line 19, or $8,500,000)                                                        $
                                                                                                   ---------------

------------------------------------------------------------------------------------------------------------------
II.  ELIGIBLE INVENTORY AVAILABILITY

------------------------------------------------------------------------------------------------------------------
     A.  ELIGIBLE INVENTORY AVAILABILITY

21.  INVENTORY (Wholesale Dealer Cost)
</TABLE>

<PAGE>   9

                                      -2-

<TABLE>

<S>      <C>                                                           <C>            <C>
         LESS:

22.      Work in Progress                                              (        )

23.      Spare Parts/Shipping and Packaging Materials                  (        )

24.      Defective Inventory                                           (        )

25.      Returned or repossessed                                       (        )

26.      Non U.S./Canada                                               (        )

27.      TOTAL INELIGIBLE INVENTORY:                                                  (        )
         (Sum of Lines 22 through 26)

28.      SUBTOTAL

29.      LESS: NET ELIGIBLE INVENTORY                                                 (        )
         (35% times Line 28)

30.      TOTAL ELIGIBLE INVENTORY AVAILABILITY
         (Line  minus Line 29)

                                                                                               ----------------
31.      TOTAL CREDIT FOR ELIGIBLE INVENTORY
         (THE LESSER OF LINE 30, OR $17,000,000)                                               ----------------

---------------------------------------------------------------------------------------------------------------
III.  ELIGIBLE RAW MATERIALS AVAILABILITY
---------------------------------------------------------------------------------------------------------------

         The Sum of:

32.      Value of Raw Materials/electronic (Baldwin's Cost)

33.      Times 10%                                                    X     .10 = $

34.      PLUS: The Value of all other Raw Materials
         (Baldwin's Cost)

35.      Times 50%                                                    X     .50 = $

36.      TOTAL
                                                                                  =============

                                                                                              -----------------
37.      RAW MATERIALS AVAILABILITY
         (Lesser of Line 35 or $         )
                                ---------                                                     -----------------

---------------------------------------------------------------------------------------------------------------
38.      TOTAL BORROWING BASE AVAILABILITY
         (Sum of Lines 20, 31, and 37)                                                        $
---------------------------------------------------------------------------------------------------------------

39.      Lesser of Line 38 and the Total Credit ($20,000,000)                                 -----------------
         as determined by the Credit Agreement
                                                                                              -----------------

40.      LESS:  Outstanding Standby Letters of Credit                                         -----------------
                                                                                              (               )
                                                                                              -----------------

                                                                                              -----------------
41.      LESS:  Outstanding Revolving Credit Balance                                          (               )
                                                                                              -----------------

---------------------------------------------------------------------------------------------------------------
TOTAL AVAILABILITY TO BORROWERS
  (Sum of Lines 39, 40 and 41)                                                                $
---------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   10

                                      -3-

      We certify that the foregoing report is true and correct.

                                         BALDWIN PIANO & ORGAN COMPANY

                                         Name:
                                              ----------------------------
                                         Title:
                                               ---------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]