Document:

Exhibit 10.2

EMPLOYMENT
AGREEMENT

This
Employment Agreement (this “Agreement”) is
entered into as of the 29th day of August,
2007, by and between Steinway Musical Instruments, Inc., a Delaware corporation
(the “Company”), and Dana D. Messina (the “Executive”).

WHEREAS, the Executive and the
Company entered into an employment agreement dated January, 1999 (the “1999
Agreement”), and

WHEREAS, the initial Term of the
1999 Agreement ended on December 31, 2006, which term was subject to extension,
and

WHEREAS, the Company offered to
renew the Executive’s employment agreement by letter dated December 19, 2006,
and

WHEREAS, the Executive has
accepted the offer to renew, and

WHEREAS, the Company and
Executive wish to make certain modifications to the agreement as set forth
herein.

NOW THEREFORE, in consideration
of the mutual covenants contained herein, and other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

1.                                       Term
of Employment.                               The
Company agrees to continue to employ the Executive, and the Executive hereby
agrees to continue performing his duties and responsibilities until December
31, 2008, unless otherwise terminated in accordance with the terms set forth in
paragraph 7 of this Agreement (including
any extensions, the “Term”).

2.                                       Duties
and Responsibilities.  The Executive
shall be employed as the President and Chief Executive Officer of the Company,
and shall perform such duties as are from time to time assigned to him by the
Board of Directors of the Company (the “Board”) and
that are normally associated with such position.

3.                                       Compensation.

a.                                       For
all services to be performed by the Executive during the Term, the Company
shall pay to him, together with other compensation as hereinafter provided, an
annual salary of $500,000 (subject to such deductions and withholdings as may
be required by law or by further agreement with the Executive), payable in
arrears biweekly.

b.                                      Without
limiting and in addition to the foregoing, each year the Executive shall be
eligible to receive an annual bonus determined in the sole and absolute
discretion of the Board.

c.                                       On
his annual review date, the Executive shall be eligible to 

receive salary
increases, based on his performance of his duties, but any such increases shall
be in the sole and absolute discretion of the Board.

4.                                       Benefits.  In addition to any other items of
compensation provided for in this Agreement, the Executive shall be entitled to
the following benefits (the “Benefits”):

a.                                       The
Executive shall be entitled to participate in any retirement (including the
Company’s Supplemental Executive Retirement Plan), life insurance, health,
medical, disability or other plans or benefits, whether insured or
self-insured, which the Company in its sole and absolute discretion may make
available generally from time to time to its executives.  The Company shall also reimburse the
Executive for all medical expenses incurred which are not otherwise covered by
an existing benefit plan and shall pay the premium for additional life
insurance up to the maximum coverage available under the Company’s policy.

a.                                       The
Executive shall be entitled to vacation in accordance with the Company’s
current vacation policy during each year of this Agreement.

5.                                       Reimbursement
of Expenses.  The Executive shall be
entitled to be reimbursed for all reasonable travel and entertainment expenses
that are (a) incurred by him in the performance of his duties hereunder and (b)
evidenced by appropriate documentation. 
In addition, the Executive shall be entitled to an annual,
non-accountable expense allowance of $10,000.

6.                                       Restrictive
Covenants.  The Executive
acknowledges that certain of the Company’s products and services are
proprietary in nature and have been manufactured, assembled and marketed
through the use of customer lists, supplier lists, trade secrets, methods of
operation and other confidential information possessed by the Company and
disclosed in confidence to the Executive (the “Trade
Secrets”), which may not be easily accessible to other persons in
the trade.  The Executive also  acknowledges that he will have substantial
and ongoing contact with the Company’s customers and suppliers and will thereby
gain knowledge of customer needs and references, sources of equity funding,
sources of supply, methods of assembly and other valuable information necessary
for the success of the Company’s business. 
Therefore, except as provided in subparagraphs (a) and (d)
below, and except as provided in paragraph 8,
during the time the Executive is employed under the provisions of this
Agreement and until the date of the second anniversary of the termination of
the executive’s employment, the Executive shall not, without the prior written
consent of the Company:

a.                                       During
the Term, engage in any business activity that competes with the Company in the
manufacturing of musical instruments or other business in which the Company is
engaged, or exploits or utilizes any of the Trade Secrets; provided,
however, that the Executive may invest in any publicly-traded
company that is similar in nature to the business in which the Company is
engaged, provided that such investment shall not exceed 5% of the equity
interest in such company on a fully diluted basis;

b.                                      Solicit
any person employed by the Company or any affiliate of the Company, appointed
as a representative of the Company, or any affiliate of the Company, to join
him as a partner, co-venturer, employee, investor or otherwise, in any
substantial business activity whatsoever;

c.                                       Intentionally
disclose or reveal any Trade Secrets or other confidential information of the
Company to anyone which disclosure results in harm to the Company; or

d.                                      Become
employed by or associated with, any entity that owns, operates, manages or has
a substantial interest in any business activity that competes with the Company
in the manufacturing of musical instruments or other significant business in
which the Company is engaged, or exploits or utilizes any of the Trade Secrets;
provided, however, if the Executive’s employment
is terminated by the Company other than for Cause (as defined herein), said
period for the purposes of this subparagraph d
shall be reduced to one year after the termination of his employment.

7.                                       Termination.

a.                                       The
Company shall have the option to terminate the Executive’s employment for “Cause”, which shall be defined as follows:  (i) any felony committed by the Executive in
connection with the performance of the Executive’s duties to the Company that
causes damage to the Company or any of its properties, assets or businesses;
(ii) any fraud, misappropriation or embezzlement by the Executive involving
properties, assets or funds of the Company; (iii) a conviction of the
Executive, or plea of nolo contendere
by the Executive, to any crime or offense involving monies or other property of
the Company; or (iv) the violation by the Executive of any non-competition or
confidentiality agreement with the Company. 
In the event of termination of the Executive’s employment for Cause, any
obligation of the Company to provide any compensation and Benefits to him, as
herein set forth, shall cease immediately except as provided in paragraph 10.

b.                                      In
the event of termination of the Executive’s employment by reason of death or
permanent disability, he and/or his estate shall be entitled to his salary and
Benefits under the terms of this Agreement for a period of six months following
the date of his death or the date upon which he becomes permanently disabled,
in addition to any other benefits provided by the Company.

c.                                       In
the event of termination of the Executive’s employment by reason of his resignation,
written notice of which shall be given by him to the Company at least sixty
days prior thereto, he shall be entitled to his salary and Benefits hereunder
up to the date of such termination, subject to extension of Benefits required
by any governmental laws and regulations.

8.                                       Renewal

a.                                       The
Term shall automatically renew on an annual basis unless the Company provides
the Executive with written notice of its intent not to renew at least sixty
(60) days prior to the expiration of the then current Term.

b.                                      If
this Agreement is not renewed, then the terms of paragraph
6(d) shall not apply and the Company shall pay to the Executive a
severance benefit on the date of the non-renewal equal to two times his latest
annual salary plus bonus in consideration for which the Executive agrees that
he will not become employed by or associated with any entity which owns,
operates, manages, or has a substantial interest in any business activity that
competes with the Company as a manufacturer of musical instruments for a period
of two years after the date of the non-renewal.

9.                                       Indemnification.   The Company agrees to indemnify the
Executive to the same extent that the Company agrees to indemnify other
officers and directors of the Company in their capacity as such.  The Company further agrees that such
indemnification shall survive the Executive’s resignation, termination or
expiration of this Agreement, with respect to actions taken by him during his
employment with the Company, unless such actions could have been grounds for
termination for Cause.

10.                                 Employment
Benefits to Continue After Termination. 
If the Executive’s employment is terminated by the Company with or
without Cause, or by resignation, he shall be entitled to continue to
participate in any health and medical plans maintained by the Company at his
employee rate if he so elects and pays the premium cost of such insurer in
advance to the Company until such time as he becomes a participant in another
plan or for an additional period of time in accordance with governmental laws
and regulations.  The Company is not
obligated to maintain any such benefit plans under this Agreement.

11.                                 Limitation
on Assignment.   The Company agrees
that if the assets of the business are transferred to any other entity the
Executive shall have the right to have this contract assigned to such entity.

12.                                 Entire
Agreement.  This Agreement
constitutes the entire understanding between the parties in connection with the
subject matter hereof and supersedes any and all prior agreements or
understandings between the parties.  
This Agreement may only be changed by a written instrument duly executed
by each party.

13.                                 Binding
Nature of Agreement Assignment.            This
Agreement shall be binding upon the parties hereto, the heirs and legal
representatives of the Executive and the successors and assigns of the Company.

14.                                 Governing
Law.            This Agreement shall
be construed and enforced in accordance with the laws of the Commonwealth of
Massachusetts, without giving effect to the conflict of laws principles
thereof.

15.                                 Construction
and Jurisdiction.

a.                                       If
any legal action relating to or other proceeding is brought by any party for
the enforcement of this Agreement, or because of an alleged dispute, breach or
default in connection with any provisions of this Agreement, such action shall
be commenced in the Commonwealth of Massachusetts, and the parties hereto agree
that such Commonwealth shall have exclusive jurisdiction thereof; provided, however, if any court in said Commonwealth shall
decline to afford injunctive relief to the Company on account of the breach or
threatened breach of this Agreement by the Executive, the Company shall be
entitled to seek such relief from any other court of competent jurisdiction,
wherever located.

b.                                      The prevailing party shall be entitled to
recover reasonably attorney’s fees and other reasonable costs incurred in such
action or proceeding in addition to any other relief to which it may be
entitled.

c.                                       The parties hereby further agree that, in
connection therewith, service of  process
by registered or certified mail or in person shall confer jurisdiction over
them.

16.                                 Serverability.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the other provisions hereof, and this Agreement shall be construed in
all respects as if such invalid or unenforceable provision or provisions were
omitted.

17.                                 Section Headings.  The
section headings herein have been inserted for convenience of reference only
and shall in no way modify or restrict any of the terms or provisions hereof.

18.                                 Waiver of Breach.  The
waiver by any party hereto of a breach of any provision of this Agreement shall
not operate or be construed as a waiver by said party of any other or
subsequent breach.

19.                                 Notices.  All notices
and other communications required or permitted to be given under the terms of
this Agreement shall be given in writing and shall be deemed to have been duly
given (a) when delivered personally, (b) if sent by telecopy, when receipt
thereof is acknowledged at the telecopy number listed below for the receiving
party, (b) the day following the day on which the same has been delivered
prepaid for overnight delivery to a national air courier service or (d) three
days following deposit in the United States mail, registered or certified,
postage prepaid, in each case addressed as follows (or to such other addresses
that may have been designated by the respective parties hereto for this
purpose):

If to the Company:

Steinway Musical
Instruments, Inc.

800 South Street,
Suite 305

Waltham,
Massachusetts  02453-1472

Fax: (781)
894-9803

Attention:                                         Dennis M. Hanson

With a copy to:

Milbank, Tweed,
Hadley & McCloy

601 South Figueroa
Street, 30th Floor

Los Angeles,
California  90017

Fax: (213)
629-5063

Attention:                                         Neil Wertlieb

If to the Executive:

Dana D. Messina

11150 Santa Monica
Blvd, Suite 700

Los Angeles, California  90025

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

	
  

  	
  Steinway Musical
  Instruments, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Dennis M.
  Hanson

  	
   

  
	
   

  	
  Dennis M. Hanson

  
	
   

  	
  Sr. Executive
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Dana D.
  Messina

  	
   

  
	
   

  	
  Dana D. MessinaExhibit 10.3

EMPLOYMENT
AGREEMENT

This
Employment Agreement (this “Agreement”) is
entered into as of the 29th day of August,
2007, by and between Steinway Musical Instruments, Inc., a Delaware corporation
(the “Company”), and Dennis M. Hanson (the “Executive”).

WHEREAS, the Executive entered
into an employment agreement with Steinway Musical Properties, Inc. (“SMP”)
dated May 1, 1995, (the “Agreement”) and

WHEREAS, the Agreement was
assigned from SMP to the Company in accordance with paragraph 12, thereof, and

WHEREAS, the Company and
Executive have previously amended the Agreement, and

WHEREAS, the Company and
Executive wish to make further changes to the Agreement.

NOW THEREFORE, in consideration
of the mutual covenants contained herein, and other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

1.                                       Term
of Employment.  The Company agrees to
continue to employ the Executive, and the Executive hereby agrees to continue
performing his duties and responsibilities until December 31, 2008, unless
otherwise terminated in accordance with the terms set forth in paragraph 7 of this Agreement (including any extensions, the
“Term”).

2.                                       Duties
and Responsibilities.

a.                                       The
Executive shall be employed as the General Counsel, Sr. Executive Vice
President and Chief Financial Officer of the Company, and shall perform such
duties as are from time to time assigned to him by the Board of Directors of
the Company (the “Board”) or the President of the
Company and that are normally associated with such positions.  The Executive shall report to the President
of the Company.

b.                                      In
addition, the Executive’s duties and responsibilities shall include those
ordinarily and customarily performed by a person holding such position, and
shall include primary responsibility for all financial matters of the
Company.  The Executive shall be entitled
to office and support staff consistent with such position.

c.                                       During
the period of his employment hereunder, the Executive agrees to devote his
entire business time, attention, energies and his best efforts to the
performance of his duties.

3.                                       Compensation.

a.                                       For
all services to be performed by the Executive during the Term, the Company
shall pay to him, together with other compensation as hereinafter provided, an
annual salary of $390,000 (subject to such deductions and withholdings as may
be required by law or by further agreement with the Executive), payable in
arrears biweekly.

b.                                      Without
limiting and in addition to the foregoing, each year the Executive shall be
eligible to receive an annual bonus determined in the sole and absolute
discretion of the Board.

c.                                       On
his annual review date, the Executive shall be eligible to receive salary
increases, based on his performance of his duties, but any such increases shall
be in the sole and absolute discretion of the Board.

4.                                       Benefits.  In addition to any other items of
compensation provided for in this Agreement, the Executive shall be entitled to
the following benefits (the “Benefits”):

a.                                       The
Executive shall be entitled to participate in any retirement, (including the
Company’s Supplemental Executive Retirement Plan), life insurance, health,
medical, disability or other plans or benefits, whether insured or
self-insured, which the Company in its sole and absolute discretion may make
available generally from time to time to its executives.  The Company shall pay the premium for
additional life insurance up to the maximum coverage available under the
Company’s policy.

a.                                       The
Executive shall be entitled to vacation in accordance with the Company’s
current vacation policy during each year of this Agreement.

c.                                       The
Executive shall be entitled to a leased automobile and all out-of-pocket
expenses for the upkeep and maintenance of the automobile.  The Executive’s personal use thereof shall be
deemed additional compensation and, therefore, subject to income tax to
him.  Any such income taxes shall be the
sole responsibility of the Executive.

5.                                       Reimbursement
of Expenses.  The Executive shall be
entitled to be reimbursed for all reasonable travel and entertainment expenses
that are (a) incurred by him in the performance of his duties hereunder and (b)
evidenced by appropriate documentation. 
In addition, the Executive shall be entitled to an annual,
non-accountable expense allowance of $10,000.

6.                                       Restrictive
Covenants.  The Executive
acknowledges that certain of the Company’s products and services are
proprietary in nature and have been manufactured, assembled and marketed
through the use of customer lists, supplier lists, trade secrets, methods of
operation and other confidential information possessed by the Company and
disclosed in confidence to the Executive (the “Trade
Secrets”), which may not be easily accessible to other persons in the
trade.  The Executive also  acknowledges that he will have substantial
and ongoing contact with the Company’s customers and suppliers and will thereby
gain knowledge of customer needs and references, sources of equity funding,
sources of supply, methods of assembly and other valuable information necessary
for the success of the Company’s business. 
Therefore, except as provided in subparagraphs (a) and (d)
below, and except as provided in paragraph 8,
during the time the Executive is employed under the provisions of this
Agreement and until the date of the second anniversary of the termination of
the executive’s employment, the Executive shall not, without the prior written
consent of the Company:

a.                                       During
the Term, engage in any business activity that competes with the 

Company in the
manufacturing of musical instruments or other business in which the Company is
engaged, or exploits or utilizes any of the Trade Secrets; provided,
however, that the Executive may invest in any publicly-traded
company that is similar in nature to the business in which the Company is
engaged, provided that such investment shall not exceed 5% of the equity
interest in such company on a fully diluted basis;

b.                                      Solicit
any person employed by the Company or any affiliate of the Company, appointed
as a representative of the Company, or any affiliate of the Company, to join
him as a partner, co-venturer, employee, investor or otherwise, in any
substantial business activity whatsoever;

c.                                       Intentionally
disclose or reveal any Trade Secrets or other confidential information of the
Company to anyone which disclosure results in harm to the Company; or

d.                                      Become
employed by or associated with, any entity that owns, operates, manages or has
a substantial interest in any business activity that competes with the Company
in the manufacturing of musical instruments or other significant business in
which the Company is engaged, or exploits or utilizes any of the Trade Secrets;
provided, however, if the Executive’s
employment is terminated by the Company other than for Cause (as defined
herein), said period for the purposes of this subparagraph
d shall be reduced to one year after the termination of his
employment.

7.                                       Termination.

a.                                       The
Company shall have the option to terminate the Executive’s employment for “Cause”, which shall be defined as follows:  (i) any felony committed by the Executive in
connection with the performance of the Executive’s duties to the Company that
causes damage to the Company or any of its properties, assets or businesses;
(ii) any fraud, misappropriation or embezzlement by the Executive involving
properties, assets or funds of the Company; (iii) a conviction of the
Executive, or plea of nolo contendere
by the Executive, to any crime or offense involving monies or other property of
the Company; or (iv) the violation by the Executive of any non-competition or
confidentiality agreement with the Company. 
In the event of termination of the Executive’s employment for Cause, any
obligation of the Company to provide any compensation and Benefits to him, as
herein set forth, shall cease immediately except as provided in paragraph 10.

b.                                      In
the event of termination of the Executive’s employment by reason of death or
permanent disability, he and/or his estate shall be entitled to his salary and
Benefits under the terms of this Agreement for a period of six months following
the date of his death or the date upon which he becomes permanently disabled,
in addition to any other benefits provided by the Company.

c.                                       In
the event of termination of the Executive’s employment by reason of his resignation,
written notice of which shall be given by him to the Company at least sixty
days prior thereto, he shall be entitled to his salary and Benefits hereunder
up to the date of such termination, subject to extension of Benefits required
by any governmental laws and regulations.

8.                                       Renewal.

a.                                       The
Term shall automatically renew on an annual basis unless the

Company provides
the Executive with written notice of its intent not to renew at least sixty
(60) days prior to the expiration of the then current Term.

b.                                      If
this Agreement is not renewed, then the terms of paragraph
6(d) shall not apply and the Company shall pay to the Executive a
severance benefit on the date of the non-renewal equal to his latest annual
salary plus bonus in consideration for which the Executive agrees that he will
not become employed by or associated with any entity which owns, operates,
manages, or has a substantial interest in any business activity that competes
with the Company as a manufacturer of musical instruments for a period of two
years after the date of the non-renewal.

9.                                       Indemnification.   The Company agrees to indemnify the
Executive to the same extent that the Company agrees to indemnify other
officers and directors of the Company in their capacity as such.  The Company further agrees that such
indemnification shall survive the Executive’s resignation, termination or
expiration of this Agreement, with respect to actions taken by him during his
employment with the Company, unless such actions could have been grounds for
termination for Cause.

10.                                 Employment
Benefits to Continue After Termination. 
If the Executive’s employment is terminated by the Company with or
without Cause, or by resignation, he shall be entitled to continue to
participate in any health and medical plans maintained by the Company at his
employee rate if he so elects and pays the premium cost of such insurer in
advance to the Company until such time as he becomes a participant in another
plan or for an additional period of time in accordance with governmental laws
and regulations.  The Company is not
obligated to maintain any such benefit plans under this Agreement.

11.                                 Limitation
on Assignment.   The Company
agrees that if the assets of the business are transferred to any other entity
the Executive shall have the right to have this contract assigned to such
entity.

12.                                 Entire
Agreement.                                                This
Agreement constitutes the entire understanding between the parties in
connection with the subject matter hereof and supersedes any and all prior
agreements or understandings between the parties. This Agreement may only be
changed by a written instrument duly executed by each party.

13.                                 Binding
Nature of Agreement Assignment.            This
Agreement shall be binding upon the parties hereto, the heirs and legal
representatives of the Executive and the successors and assigns of the Company.

14.                                 Governing
Law.            This Agreement shall
be construed and enforced in accordance with the laws of the Commonwealth of
Massachusetts, without giving effect to the conflict of laws principles
thereof.

15.                                 Construction
and Jurisdiction.

a.                                       If
any legal action relating to or other proceeding is brought by any party for
the enforcement of this Agreement, or because of an alleged dispute, breach or
default in connection with any provisions of this Agreement, such action shall
be commenced in the Commonwealth of Massachusetts, and the parties hereto agree
that such Commonwealth shall have exclusive jurisdiction thereof; provided, however, if any court in said Commonwealth shall
decline to afford injunctive relief to the Company on account of the breach or
threatened breach 

of this Agreement
by the Executive, the Company shall be entitled to seek such relief from any
other court of competent jurisdiction, wherever located.

b.                                      The prevailing party shall be entitled to
recover reasonably attorney’s fees and other reasonable costs incurred in such
action or proceeding in addition to any other relief to which it may be
entitled.

c.                                       The
parties hereby further agree that, in connection therewith, service of  process by registered or certified mail or in
person shall confer jurisdiction over them.

16.                                 Serverability.                          The invalidity or unenforceability of any provision of
this Agreement shall not affect the other provisions hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable
provision or provisions were omitted.

17.                                 Section Headings.                                               The section headings herein have been
inserted for convenience of reference only and shall in no way modify or
restrict any of the terms or provisions hereof.

18.                                 Waiver of Breach.                                                The waiver by any party hereto of a
breach of any provision of this Agreement shall not operate or be construed as
a waiver by said party of any other or subsequent breach.

19.                                 Notices.    All notices and other communications
required or permitted to be given under the terms of this Agreement shall be
given in writing and shall be deemed to have been duly given (a) when delivered
personally, (b) if sent by telecopy, when receipt thereof is acknowledged at
the telecopy number listed below for the receiving party, (b) the day following
the day on which the same has been delivered prepaid for overnight delivery to
a national air courier service or (d) three days following deposit in the
United States mail, registered or certified, postage prepaid, in each case
addressed as follows (or to such other addresses that may have been designated
by the respective parties hereto for this purpose):

If to the Company:

Steinway Musical
Instruments, Inc.

c/o Kirkland
Messina, Inc.

11150 Santa Monica
Blvd., Suite 700

Los Angeles,
CA  90025

Fax: (310) 445-6522

Attention:                                         Dana D. Messina

With a copy to:

Milbank, Tweed,
Hadley & McCloy

601 South Figueroa
Street, 30th Floor

Los Angeles, California  90017

Fax: (213)
629-5063

Attention:                                         Neil Wertlieb

If to the Executive:

Dennis M. Hanson

Unit 11,
Constellation Wharf

Pier 7, Ninth Street

Charlestown, MA 
02129

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

	
  

  	
  Steinway Musical
  Instruments, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dana D. Messina

  	
   

  
	
   

  	
  President &
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Dennis M.
  Hanson

  	
   

  
	
   

  	
  Dennis M. Hanson

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