Document:

<PAGE>
                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

                  This Employment Agreement (this "AGREEMENT") is entered into
as of June 10, 2005 between Whitehall Jewellers, Inc., a Delaware corporation
(the "COMPANY"), and Robert Evans (the "EXECUTIVE").

                  WHEREAS, the Company desires to employ the Executive to serve
as Executive Vice President - Administration and Chief Information Officer of
the Company, and the Executive desires to be employed by the Company, upon the
terms and subject to the conditions set forth herein.

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements contained herein, the Company and the Executive hereby agree
as follows:

                  1. EMPLOYMENT. The Company hereby agrees to employ the
Executive and the Executive hereby agrees to be employed by the Company upon the
terms and subject to the conditions contained in this Agreement. The term of
employment of the Executive by the Company pursuant to this Agreement shall
commence on June 10, 2005 (the "Effective Date") and shall end on the first
annual anniversary of the Effective Date (such date or any successive date to
which the term thereof has been extended pursuant to the succeeding sentence,
the "EXPIRATION DATE"). Such term shall be automatically extended for successive
one-year periods unless either the Executive or the Company gives notice that
such term shall not be so extended no later than 60 days prior to the then
current Expiration Date or unless earlier terminated pursuant to Section 4
hereof. The term of employment as prescribed in the preceding sentence is
hereinafter called the "Employment Period." From and after the end of the
Employment Period, unless earlier terminated hereunder, the Executive's
employment with the Company shall be at will, not for any specified term and
without any payment guarantees, and either the Executive or the Company may
terminate the employment relationship at any time.

                  2. POSITION AND DUTIES; RESPONSIBILITIES. (a) Position and
Duties. The Company shall employ the Executive during the Employment Period as
its executive vice president, with the title of Executive Vice President -
Administration and Chief Information Officer. During the Employment Period, the
Executive shall perform faithfully and loyally and to the best of the
Executive's abilities the duties assigned to the Executive hereunder and shall
devote the Executive's full business time, attention and effort to the affairs
of the Company and its subsidiaries and shall use the Executive's reasonable
best efforts to promote the interests of the Company and its subsidiaries. The
Executive may engage in charitable, civic or community activities and, with the
prior approval of the Board of Directors of the Company (the "Board"), which may
be granted or denied in its sole discretion, may serve as a director (but not a
member of a committee of a board of directors) of any other business
corporation, provided that such activities or service do not interfere with the
Executive's duties hereunder or violate the terms of any of the covenants
contained in Sections 6, 7 or 8 hereof.

                  (b) RESPONSIBILITIES. Subject to the powers, authority and
responsibilities vested in the Board, the Chairman of the Board and duly
constituted committees of the Board and the Chief Executive Officer, President
and Chief Operating Officer of the Company, the

<PAGE>

Executive shall have the authority and responsibility as Executive Vice
President - Administration and Chief Information Officer of the Company. The
Executive shall also perform such other duties (not inconsistent with the
position of Executive Vice President - Administration and Chief Information
Officer) on behalf of the Company and its subsidiaries as may from time to time
be authorized or directed by the Board, the Chairman, the Chief Executive
Officer, the President or the Chief Operating Officer of the Company.

                  3. COMPENSATION. (a) BASE SALARY. During the Employment
Period, the Company shall pay to the Executive a base salary at the rate of
$200,000 per annum ("Base Salary"), payable in accordance with the Company's
executive payroll policy. Such Base Salary shall be reviewed annually, and shall
be subject to such annual increases, if any, as determined by the Compensation
Committee of the Board (the "COMPENSATION COMMITTEE").

                  (b) ANNUAL BONUS. The Executive shall, in the sole discretion
of the Compensation Committee, be eligible to participate in the Company's
Management Bonus Plan or other bonus plan made available to elected officers of
the Company generally ("ANNUAL BONUS"); provided that the minimum bonus that the
Executive shall receive for the fiscal year ending January 31, 2006 shall be
$10,000.

                  (c) EQUITY-BASED COMPENSATION. The Executive shall, in the
sole discretion of the Compensation Committee, be eligible during the Employment
Period to be granted stock options, restricted stock and/or other equity-based
compensation awards. The Executive shall be granted an option to purchase 30,000
shares of the Corporation's common stock, par value $.001 per share, such
options to be Incentive Stock Options pursuant to the terms of the Company's
1997 Long-Term Incentive Plan, as amended.

                  (d) OTHER BENEFITS. During the Employment Period, the
Executive shall be entitled to participate in the Company's employee benefit
plans generally available to executives of the Company (such benefits, together
with the benefits referred to in (c) above, being hereinafter referred to as the
"Employee Benefits"). The Executive shall be entitled to take time off for
vacation or illness in accordance with the Company's policy for executives and
to receive all other fringe benefits as are from time to time made generally
available to executives of the Company (currently including vacation days,
health benefits, reimbursement of expenses and automobile benefits).

                  (e) EXPENSE REIMBURSEMENT. During the Employment Period, the
Company shall reimburse the Executive, in accordance with the Company's policies
and procedures, for all proper expenses incurred by the Executive in the
performance of the Executive's duties hereunder.

                  (f) RIGHT TO CHANGE PLANS. Nothing in this Agreement shall be
construed to limit, condition or otherwise encumber the rights of the Company to
amend, discontinue, substitute or maintain any benefit plan, program or
perquisite.

                  4. TERMINATION. (a) Death. Upon the death of the Executive,
this Agreement shall automatically terminate and all rights of the Executive and
the Executive's heirs, executors and administrators to compensation and other
benefits under this Agreement

                                       2
<PAGE>

shall cease immediately, except that the Executive's heirs, executors or
administrators, as the case may be, shall be entitled to:

                  (i) accrued Base Salary through and including the Executive's
         date of death;

                  (ii) accrued Annual Bonus through and including the
         Executive's date of death (determined on a pro rata basis for the
         number of days of the fiscal year for which the Executive was employed
         by the Company), such Annual Bonus to be paid following the
         Compensation Committee's determination of the Executive's Annual Bonus,
         if any, for the fiscal year in which the Executive's date of death so
         occurred, which determination may be made at the same time that the
         Compensation Committee determines annual bonuses, if any, for executive
         officers of the Company in general; provided that, if required in order
         that the annual bonus to be paid not be considered deferred
         compensation for purposes of Section 409A of the Internal Revenue Code,
         such accrued annual bonus shall be determined and shall be a paid in
         such shorter period of time as may required in order that such amount
         does not constitute deferred compensation thereunder; and

                  (iii) other Employee Benefits to which the Executive was
         entitled on the date of death in accordance with the terms of the plans
         and programs of the Company.

                  (b) DISABILITY. The Company may, at its option, terminate this
Agreement upon written notice to the Executive if the Executive, because of
physical or mental incapacity or disability, fails to perform the essential
functions of the Executive's position, with or without reasonable accommodation,
required of the Executive hereunder for a continuous period of 120 days or any
180 days within any 12-month period. Upon such termination, all obligations of
the Company hereunder shall cease immediately, except that the Executive shall
be entitled to:

                  (i) accrued Base Salary through and including the effective
         date of the Executive's termination of employment;

                  (ii) accrued Annual Bonus through and including the effective
         date of the Executive's termination of employment (determined on a pro
         rata basis for the number of days of the fiscal year for which the
         Executive was employed by the Company), such Annual Bonus to be paid
         following the Compensation Committee's determination of the Executive's
         Annual Bonus, if any, for the fiscal year in which the Executive's
         termination of employment so occurred, which determination may be made
         at the same time that the Compensation Committee determines annual
         bonuses, if any, for executive officers of the Company in general;
         provided that, if required in order that the annual bonus to be paid
         not be considered deferred compensation for purposes of Section 409A of
         the Internal Revenue Code, such accrued annual bonus shall be
         determined and shall be a paid in such shorter period of time as may
         required in order that such amount does not constitute deferred
         compensation thereunder; and

                  (iii) other Employee Benefits to which the Executive is
         entitled upon termination of employment in accordance with the terms of
         the plans and programs of the Company.

                                       3

<PAGE>

In the event of any dispute regarding the existence of the Executive's
incapacity or disability hereunder, the matter shall be resolved by the
determination of a physician selected by the Board. The Executive shall submit
to appropriate medical examinations for purposes of such determination.

                  (c) CAUSE. (i) The Company may, at its option, terminate the
Executive's employment under this Agreement for Cause (as hereinafter defined)
upon written notice to the Executive (the "CAUSE NOTICE"). Any such termination
for Cause shall be authorized by the Board. The Cause Notice shall state the
action(s) or inaction(s) giving rise to termination for Cause in reasonable
detail. The Executive shall have 5 business days after the Cause Notice is given
to cure the particular action(s) or inaction(s), to the extent a cure is
possible. If the Executive so effects a cure to the satisfaction of the Board,
in its sole discretion, the Cause Notice shall be deemed rescinded and of no
force or effect.

                  (ii) As used in this Agreement, the term "Cause" shall mean
         any one or more of the following:

                           (A) any refusal by the Executive to perform the
                  Executive's duties under this Agreement or to perform specific
                  directives of the Board, the Chairman of the Board or the
                  Chief Executive Officer which are consistent with the scope
                  and nature of the Executive's duties and responsibilities as
                  set forth herein;

                           (B) any intentional act of fraud, embezzlement or
                  theft by the Executive in connection with the Executive's
                  duties hereunder or in the course of the Executive's
                  employment hereunder or any prior employment, or the
                  Executive's admission or conviction of a felony or of any
                  crime involving moral turpitude, fraud, embezzlement, theft or
                  misrepresentation;

                           (C) any use of alcohol by the Executive that
                  interferes with the performance of the Executive's duties or
                  adversely impacts the reputation of the Executive or of the
                  Company or any illegal use of a controlled substance by the
                  Executive;

                           (D) any gross negligence or willful misconduct of the
                  Executive resulting in a loss to the Company or any of its
                  subsidiaries, or damage to the reputation of the Company or
                  any of its subsidiaries;

                           (E) any violation of a written Company policy by the
                  Executive;

                           (F) any breach by the Executive of any one or more of
                  the covenants contained in Section 6, 7 or 8 hereof; or

                           (G) any violation of any statutory or common law duty
                  of loyalty to the Company or any of its subsidiaries.

                  (iii) The exercise of the right of the Company to terminate
         this Agreement pursuant to this Section 4(c) shall not abrogate the
         rights or remedies of the Company in respect of the breach giving rise
         to such termination.

                                       4
<PAGE>

                  (iv) If the Company terminates the Executive's employment for
         Cause, all obligations of the Company hereunder shall cease, except
         that the Executive shall be entitled to the payments and benefits
         specified in Sections 4(b)(i) and 4(b)(iii) hereof.

                  (d) TERMINATION WITHOUT CAUSE. The Company may, at its option,
terminate the Executive's employment under this Agreement upon written notice to
the Executive for a reason other than a reason set forth in Section 4(a), 4(b)
or 4(c). Any such termination shall be authorized by the Board. If the Company
terminates the Executive's employment for any such reason, all obligations of
the Company hereunder shall cease immediately, except that the Executive shall
be entitled to:

                  (i) the payments and benefits specified in Sections 4(b)(i)
         through 4(b)(iii) hereof, inclusive; and

                  (ii) the continuation of payment of amounts equal to the Base
         Salary which otherwise would have been payable hereunder had the
         Executive's employment hereunder not been terminated pursuant to this
         Section 4(d) for a period of 12 months from the date of termination;
         provided that, if required in order that such amounts not be considered
         deferred compensation for purposes of Section 409A of the Internal
         Revenue Code, such amounts shall be a paid over such shorter period of
         time as may required in order that such amounts do not constitute
         deferred compensation thereunder.

Notwithstanding Section 4(d)(ii), the amounts payable to the Executive under
such Section 4(d)(ii) shall be reduced by the amount of salary, bonus or other
compensation which the Executive receives from a subsequent employer during the
period of time that amounts are payable to the Executive under such Section
4(d)(ii). The Executive shall use reasonable efforts to seek other employment
for this purpose.

                  (e) VOLUNTARY TERMINATION. Upon 60 days prior written notice
to the Company (or such shorter period as may be permitted by the Board), the
Executive may voluntarily terminate the Executive's employment with the Company
for any reason. If the Executive voluntarily terminates the Executive's
employment pursuant to this Section 4(e), all obligations of the Company
hereunder shall cease immediately, except that the Executive shall be entitled
to the payments and benefits specified in Sections 4(b)(i) and 4(b)(iii) hereof.

                  5. FEDERAL AND STATE WITHHOLDING. The Company shall deduct
from the amounts payable to the Executive pursuant to this Agreement the amount
of all required federal, state and local withholding taxes in accordance with
the Executive's Form W-4 on file with the Company, and all applicable federal
employment taxes.

                  6. NONCOMPETITION; NONSOLICITATION. (a) General. The Executive
acknowledges that in the course of the Executive's employment with the Company
the Executive has and will become familiar with trade secrets and other
confidential information concerning the Company and its subsidiaries and that
the Executive's services will be of special, unique and extraordinary value to
the Company and its subsidiaries.

                  (b) NONCOMPETITION. The Executive agrees that during the
period of the Executive's employment with the Company, the period, if any,
during which the Executive is

                                       5

<PAGE>

receiving payments from the Company pursuant to Section 4(d), and for a period
of one year after the termination of the Executive's employment pursuant to
Section 4(e) (the "NONCOMPETITION PERIOD") the Executive shall not in any
manner, directly or indirectly, through any person, firm or corporation, alone
or as a member of a partnership or as an officer, director, stockholder,
investor or employee of or consultant to any other corporation or enterprise or
otherwise, engage or be engaged, or assist any other person, firm, corporation
or enterprise in engaging or being engaged, operating retail jewelry stores in
North America.

                  (c) NONSOLICITATION. The Executive further agrees that during
the Noncompetition Period the Executive shall not (i) in any manner, directly or
indirectly, induce or attempt to induce any employee of the Company or any of
its subsidiaries to terminate or abandon his or her employment for any purpose
whatsoever or (ii) in connection with any business to which Section 6(b)
applies, call on, service, solicit or otherwise do business with any customer of
the Company or any of its subsidiaries.

                  (d) EXCEPTIONS. Nothing in this Section 6 shall prohibit the
Executive from being (i) a stockholder in a mutual fund or a diversified
investment company or (ii) an owner of not more than two percent of the
outstanding stock of any class of a corporation, any securities of which are
publicly traded, so long as the Executive has no active participation in the
business of such corporation.

                  (e) REFORMATION. If, at any time of enforcement of this
Section 6, a court or an arbitrator holds that the restrictions stated herein
are unreasonable under circumstances then existing, the parties hereto agree
that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area and that
the court or arbitrator shall be allowed to revise the restrictions contained
herein to cover the maximum period, scope and area permitted by law. This
Agreement shall not authorize a court or arbitrator to increase or broaden any
of the restrictions in this Section 6.

                  7. CONFIDENTIALITY. The Executive shall not, at any time
during the Employment Period or thereafter, make use of or disclose, directly or
indirectly, any (i) trade secret or other confidential or secret information of
the Company or of any of its subsidiaries or (ii) other technical, business,
proprietary or financial information of the Company or of any of its
subsidiaries not available to the public generally or to the competitors of the
Company or to the competitors of any of its subsidiaries ("CONFIDENTIAL
INFORMATION"), except to the extent that such Confidential Information (a)
becomes a matter of public record or is published in a newspaper, magazine or
other periodical or on electronic or other media available to the general
public, other than as a result of any act or omission of the Executive, (b) is
required to be disclosed by any law, regulation or order of any court or
regulatory commission, department or agency, provided that the Executive gives
prompt notice of such requirement to the Company to enable the Company to seek
an appropriate protective order, or (c) is required to be used or disclosed by
the Executive to perform properly the Executive's duties under this Agreement.
Promptly following the termination of the Employment Period, the Executive shall
surrender to the Company all records, memoranda, notes, plans, reports, computer
tapes and software and other documents and data which constitute Confidential
Information which the Executive may then possess or have under the Executive's
control (together with all copies thereof).

                                       6

<PAGE>

                  8. INVENTIONS. The Executive hereby assigns to the Company the
Executive's entire right, title and interest in and to all discoveries and
improvements, patentable or otherwise, trade secrets and ideas, writings and
copyrightable material, which may be conceived by the Executive or developed or
acquired by the Executive during the Employment Period, which may pertain
directly or indirectly to the business of the Company or any of its
subsidiaries. The Executive agrees to disclose fully all such developments to
the Company upon its request, which disclosure shall be made in writing promptly
following any such request. The Executive shall, upon the Company's request,
execute, acknowledge and deliver to the Company all instruments and do all other
acts which are necessary or desirable to enable the Company or any of its
subsidiaries to file and prosecute applications for, and to acquire, maintain
and enforce, all patents, trademarks and copyrights in all countries. In
accordance with the Illinois Employee Patent Act, 765 ILCS 1060, the Executive
is hereby notified by the Company, and understands, that the foregoing
provisions do not apply to an invention for which no equipment, supplies,
facilities or trade secret information of the Company was used and which was
developed entirely on the Executive's own time, unless (i) the invention relates
(A) to the business of the Company or (B) to the Company's actual or
demonstrably anticipated research and development, or (ii) the invention results
from any work performed by the Executive for the Company.

                  9. ENFORCEMENT. The parties hereto agree that the Company and
its subsidiaries would be damaged irreparably in the event that any provision of
Section 6, 7 or 8 of this Agreement were not performed in accordance with its
terms or were otherwise breached and that money damages would be an inadequate
remedy for any such nonperformance or breach. Accordingly, the Company and its
successors and permitted assigns shall be entitled, in addition to other rights
and remedies existing in their favor, to an injunction or injunctions to prevent
any breach or threatened breach of any of such provisions and to enforce such
provisions specifically (without posting a bond or other security). The
Executive agrees that the Executive will submit to the personal jurisdiction of
the courts of the State of Illinois in any action by the Company to enforce an
arbitration award against the Executive or to obtain interim injunctive or other
relief pending an arbitration decision.

                  10. REPRESENTATIONS. The Executive represents and warrants to
the Company that (a) the execution, delivery and performance of this Agreement
by the Executive does not and will not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or decree to
which the Executive is a party or by which the Executive is bound, (b) the
Executive is not a party to or bound by any employment agreement, noncompetition
agreement or confidentiality agreement with any other person or entity and (c)
upon the execution and delivery of this Agreement by the Company, this Agreement
shall be the valid and binding obligation of the Executive, enforceable in
accordance with its terms.

                  11. SURVIVAL. Sections 6, 7, 8 and 9 of this Agreement shall
survive and continue in full force and effect in accordance with their
respective terms, notwithstanding any termination of the Employment Period.

                  12. ARBITRATION. Except as otherwise set forth in Section 9
hereof, any dispute or controversy between the Company and the Executive,
whether arising out of or relating to this Agreement, the breach of this
Agreement, or otherwise, shall be settled by arbitration in Chicago, Illinois
administered by the American Arbitration Association, with any

                                       7

<PAGE>

such dispute or controversy arising under this Agreement being so administered
in accordance with its Commercial Rules then in effect, and judgment on the
award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. The arbitrator shall have the authority to award any remedy or relief
that a court of competent jurisdiction could order or grant, including, without
limitation, the issuance of an injunction. However, either party may, without
inconsistency with this arbitration provision, apply to any court having
jurisdiction over such dispute or controversy and seek interim provisional,
injunctive or other equitable relief until the arbitration award is rendered or
the controversy is otherwise resolved. Except as necessary in court proceedings
to enforce this arbitration provision or an award rendered hereunder, or to
obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior
written consent of the Company and the Executive. The Company and the Executive
acknowledge that this Agreement evidences a transaction involving interstate
commerce. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the
interpretation and enforcement of this arbitration provision.

                  13. NOTICES. All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed given when (a)
delivered personally or by overnight courier to the following address of the
other party hereto (or such other address for such party as shall be specified
by notice given pursuant to this Section) or (b) sent by facsimile to the
following facsimile number of the other party hereto (or such other facsimile
number for such party as shall be specified by notice given pursuant to this
Section), with the confirmatory copy delivered by overnight courier to the
address of such party pursuant to this Section 13:

                  If to the Company, to:

                           Whitehall Jewellers, Inc.
                           155 N. Wacker Drive
                           Chicago, IL  60606
                           Attn:  Secretary

                  If to the Executive, to:

                           Robert Evans
                           7N 251 Westview Court
                           Saint Charles, IL  60175

                  14. SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
the validity, legality or enforceability of any other provision of this
Agreement or the validity, legality or enforceability of such provision in any
other jurisdiction, but this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

                                       8

<PAGE>

                  15. ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement and understanding between the parties with respect to the subject
matter hereof and supersedes and preempts any prior understandings, agreements
or representations by or between the parties, written or oral, which may have
related in any manner to the subject matter hereof.

                  16. SUCCESSORS AND ASSIGNS. This Agreement shall be
enforceable by the Executive and the Executive's heirs, executors,
administrators and legal representatives, and by the Company and its successors
and assigns.

                  17. GOVERNING LAW. This Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Illinois without regard to principles of conflict of laws.

                  18. AMENDMENT AND WAIVER. The provisions of this Agreement may
be amended or waived only by the written agreement of the Company and the
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                  19. COUNTERPARTS. This Agreement may be executed in two
counterparts, each of which shall be deemed to be an original and both of which
together shall constitute one and the same instrument.

                               * * * * * * * * * *

                                       9

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first written above.

                                  WHITEHALL JEWELLERS, INC.

                                  By: /s/ Lucinda M. Baier
                                     ------------------------------------------
                                  Title: Chief Executive Officer, President and
                                         Chief Operating Officer
                                        ---------------------------------------

                                  ROBERT EVANS

                                   /s/ Robert Evans
                                  ---------------------------------------------

                                       10<PAGE>

                                                                 EXHIBIT 4.5(a)

                             SUPPLEMENTAL INDENTURE

         THIS SUPPLEMENTAL INDENTURE (the "Supplemental Indenture") is executed
as of this 7th day of June, 2005, by Standard Management Corporation, an Indiana
corporation ("Standard") and Deutsche Bank Trust Company Americas (successor in
interest to Bankers Trust Company), as Trustee under the indenture referenced
below (the "Trustee").

         WHEREAS, Standard, as issuer, has heretofore entered into an Indenture,
dated as of August 9, 2001 (the "Indenture"), with the Trustee pursuant to which
the Trustee acts as trustee for the Holders of Standard's 10.25% Junior
Subordinated Debentures due 2031 (the "Debentures");

         WHEREAS, SMAN Capital Trust I, a Delaware business trust and a
subsidiary of Standard (the "Trust"), is the Holder of all outstanding
Debentures;

         WHEREAS, Section 9.2 of the Indenture provides that so long as the
Trust is the Holder of Debentures, Standard and the Trustee may amend or
supplement the Indenture with the consent of the Holders of a majority of the
aggregate liquidation amount of the Preferred Securities issued by the Trust,
subject to certain conditions contained therein;

         WHEREAS, pursuant to the Consent Solicitation Statement dated April 8,
2005 (the "Statement"), Standard commenced a solicitation to obtain the consent
of not less than a majority of the aggregate liquidation amount of the Preferred
Securities of the Trust (the "Consent Solicitation") to the proposed amendment
(the "Proposed Amendment") to the Indenture;

         WHEREAS, the Holders of at least a majority of the aggregate
liquidation amount of the Preferred Securities outstanding as of April 4, 2005
have consented to the Proposed Amendment as described in this Supplemental
Indenture; and

         WHEREAS, pursuant to Section 9.2 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

         NOW THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto agree as follows.

         1. Capitalized Terms. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

         2. Amendments to the Indenture. The Indenture is hereby amended by
deleting Article VIII in its entirety and replacing it with the following:

                                  "ARTICLE VIII

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

         Section 8.1. Company May Consolidate, Etc., Only on Certain Terms.

         The Company shall not consolidate with or merge into any other Person,
and no Person shall consolidate with or merge into the Company, unless:

<PAGE>

         (a) if the Company shall consolidate with or merge into another Person,
the entity formed by such consolidation or into which the Company is merged
shall be an entity organized and existing under the laws of the United States of
America or any state thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, the due and punctual payment of
the principal of (and premium, if any), and interest (including any Additional
Interest) on all the Securities of every series and the performance of every
covenant of this Indenture on the part of the Company to be performed or
observed;

         (b) immediately after giving effect to such transaction, no Event of
Default, and no event that, after notice or lapse of time, or both, would
constitute an Event of Default, shall have occurred and be continuing; and

         (c) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that such consolidation or merger and
any such supplemental indenture comply with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied
with and, in the case of a transaction subject to this Section 8.1, an Officer's
Certificate or Opinion of Counsel to the effect that the surviving, resulting or
successor entity is legally bound by the Indenture and the Securities; and the
Trustee, subject to Section 6.1, may rely upon such Officers' Certificates and
Opinions of Counsel as conclusive evidence that such transaction complies with
this Section 8.1.

         Notwithstanding anything herein to the contrary, upon the conveyance,
transfer or lease of the Company's properties and assets substantially as an
entirety to any Person, the Company shall have the right, but not the
obligation, to have its obligations under this Indenture assumed by the Person
that acquires by conveyance or transfer, or that leases, the properties and
assets of the Company substantially as an entirety, so long as the conditions of
Section 8.1(a), (b) and (c) set forth above have been satisfied with respect to
such assumption of the Company's obligations hereunder.

         Section 8.2. Successor Company Substituted.

         (a) Upon any consolidation or merger by the Company with or into any
other Person or the assumption, at the Company's sole option, of the Company's
obligations following any conveyance, transfer or lease by the Company of its
properties and assets substantially as an entirety in accordance with Section
8.1, the successor entity formed by such consolidation or into which the Company
is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor Person
had been named as the Company herein; and in the event of any such conveyance,
transfer or lease the Company shall be discharged from all obligations and
covenants under the Indenture and the Securities.

         (b) Such successor Person may cause to be executed, and may issue
either in its own name or in the name of the Company, any or all of the
Securities issuable hereunder that theretofore shall not have been signed by the
Company and delivered to the Trustee; and, upon the order of such successor
Person instead of the Company and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and
shall deliver any Securities that previously shall have been signed and
delivered by the officers of the Company to the Trustee for authentication
pursuant to such provisions and any Securities that such successor Person
thereafter shall cause to be executed and delivered to the Trustee on its behalf
for the purpose pursuant to such provisions. All the Securities so issued shall
in all respects have the same legal rank and benefit under this Indenture as the
Securities theretofore or thereafter issued in accordance with the terms of this
Indenture.

<PAGE>

         (c) In case of any such consolidation or merger, such changes in
phraseology and form may be made in the Securities thereafter to be issued as
may be appropriate."

         3. Related Definitions and References. Pursuant to the Proposed
Amendments, all definitions used exclusively in, and all references to, the
deleted sections of the Indenture set forth in Section 2 above are also deleted
in their entirety, unless otherwise specified.

         4. Receipt by Trustee. In accordance with Sections 9.2 and 9.3 of the
Indenture, the Trustee acknowledges that it has received (i) a copy of the
resolutions of the Company's Board of Directors authorizing the execution of
this Supplemental Indenture, (ii) satisfactory evidence of the consent of
holders of a majority of the aggregate liquidation amount of the Preferred
Securities issued by the Trust to the execution of this Supplemental Indenture
and (iii) an Officers' Certificate and Opinion of Counsel stating that the
execution of this Supplemental Indenture is permitted by the Indenture and all
conditions precedent and covenants relating to the execution of this
Supplemental Indenture have been satisfied.

         5. Parties. Nothing expressed or mentioned herein is intended or shall
be construed to give any Person other than the Holders and the Trustee, any
legal or equitable right, remedy or claim under or in respect of this
Supplemental Indenture or the Indenture or any provision herein or therein
contained.

         6. Governing Law. This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York, as applied to
contracts made and performed in the State of New York.

         7. Separability. Each provision of this Supplemental Indenture shall be
considered separable and if for any reason any provision which is not essential
to the effectuation of the basic purpose of this Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

         8. Condition to Operative Effect. Pursuant to Section 9.4 of the
Indenture, this Supplemental Indenture shall become effective upon execution
hereof by the Trustee and the Company.

         9. Multiple Counterparts. The parties may sign multiple counterparts of
this Supplemental Indenture. Each signed counterpart shall be deemed an
original, but all of them together represent one and the same agreement.

         10. Effect of Headings. The headings of the sections in this
Supplemental Indenture have been inserted for convenience of reference only, are
not to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.

         11. The Trustee. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity, legality or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Company.

         12. Ratification of Indenture; Supplemental Indenture Part of
Indenture. Except as expressly supplemented hereby, the Indenture is in all
respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect. This Supplemental Indenture shall
form a part of the Indenture for all purposes, and every Holder of Securities
heretofore or hereafter authenticated and delivered shall be bound hereby.

                        [signatures follow on next page]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the date first above
written.

                                      STANDARD MANAGEMENT CORPORATION

                                      By:  /s/ Ronald D. Hunter
                                           ------------------------------------
                                           Ronald D. Hunter
                                           Chairman and Chief Executive Officer

                                      DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                      AS TRUSTEE

                                      By:  /s/ Susan Johnson
                                           ------------------------------------
                                           Name: Susan Johnson
                                           Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]