Steinway Musical Instruments (LVB)

Payment of Indebtedness.

Pay, discharge or otherwise satisfy at or before maturity (subject, where applicable, to specified grace periods and, in the case of trade payables, to normal payment practices) all of its obligations and liabilities of whatsoever nature, except when the amount or validity thereof is currently being contested in good faith by appropriate proceedings and it shall have provided for such reserves: (a) prior to any Event of Default which is continuing, and provided that the amount in controversy is $500,000 or less, as it may reasonably deem proper or necessary; and (b) subsequent to any Event of Default which is continuing, or in the event that the amount in controversy is $100,000 or more, as the Administrative Agent may reasonably deem proper and necessary. The foregoing exception shall not apply, however, with respect to any Indebtedness to any of the following Persons: any Dealer Note Purchase Party, if applicable, the Senior Notes Trustee, the Senior Note Holders, NYCIDA, and/or any Person who such Borrower is obligated to cause to enter into an Intercreditor Agreement with the Lender.