PROMISSORY NOTE

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                                                                    EXHIBIT 10.3

                                 PROMISSORY NOTE

$500,000.00                                               Date: February 23, 2006

      FOR VALUE RECEIVED, STANDARD MANAGEMENT CORPORATION, a corporation duly
organized and validly existing under the laws of the State of Indiana, promises
to pay to the order of SAM SCHMIDT AND SHEILA SCHMIDT the sum of Five Hundred
Thousand Dollars ($500,000.00), at 2202 Chatsworth Court, Henderson, Nevada
89074 or at such other place as the holder hereof may direct in writing, with
nine and one half percent (9.5%) interest thereon. This Promissory Note and all
accrued interest thereon is payable on or before May 1, 2006.

      In the event of default of payment, penalties and interest at the rate of
twelve per centum (12%) per annum will be applied to the unpaid balance.

      No delay or om