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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 omission on the part of the holder hereof in the exercise of
any right or remedy shall operate as a waiver thereof, and no single or partial
exercise by the holder hereof of any right or remedy shall preclude other or
further exercise thereof or of any other right or remedy.

      Signed and delivered at Indianapolis, Indiana this 23rd day of February,
2006.

                                 STANDARD MANAGEMENT CORPORATION

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

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                            EXTENSION OF PAYMENT DATE
                               OF PROMISSORY NOTE

      For good and valuable consideration, the receipt of which is hereby
acknowledged, Sam Schmidt and Sheila Schmidt hereby extend the due date of that
certain $500,000 Promissory Note dated February 23, 2006 from Standard
Management Corporation, from May 1, 2006 to June 1, 2006. A copy of the
Promissory Note is attached hereto as Exhibit "A."

      Signed and delivered at Indianapolis, Indiana this 12th day of May, 2006
and effective as of May 1, 2006.

   /s/ Sam Schmidt                           /s/ Sheila Schmidt
------------------------------            ----------------------------------
Sam Schmidt                               Sheila Schmidt<PAGE>

                                                                 Exhibit (10)(j)

                                  July 28, 2005

Mr. Greg Geswein
________________
________________

Dear Greg,

As you know from our discussions, we need a highly qualified CFO to provide
strong leadership to help lead our company. You are that person.

To that end, I am pleased to offer you the position of Chief Financial Officer.
Your intelligence, demonstrated record of success, and leadership abilities will
be a major asset to Reynolds. You will certainly have the opportunity to make a
substantial and visible contribution to the success of Reynolds and Reynolds.

The specifics of the offer are outlined as follows:

Base Pay

Your base salary will be $400,000 annually, paid bi-weekly. We will set a start
date next week, having in mind our mutual desire that you participate in the
September 15, 2005 Analyst Day, and have the opportunity to get reasonably
acquainted with our strategies before then.

Incentive Plan

You have two annual incentive plans which, together, target 65% of your annual
base salary.

      Annual Company Component

Under the Incentive Plan you are eligible for an annual component based on
performance against financial targets established by the Compensation Committee.
Your targeted bonus is 55% of your annual salary and you can earn up to 110% of
salary based upon the company's financial performance. The current performance
measures are return on capital and sales growth. This bonus is payable in
November.

      Annual Personal Performance Component

Under the Incentive Plan you are eligible for a personal performance bonus
designed to reward financial and non-financial goals that are agreed upon
between you and the CEO. Your targeted bonus is 10% of your annual salary and
you can earn up to 20% of base salary. The personal performance bonus is an
annual program based upon your personal contribution to the company's overall
success. This bonus is payable in November.

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Bonus Guarantee

For the '05 fiscal year you are guaranteed a total bonus under the Incentive
Plan (including both the company and personal components) of not less than
$60,000 provided you remain continuously employed through the '05 fiscal year.
For the '06 fiscal year you are guaranteed a total bonus (including both the
company and personal components) of not less than $200,000 provided you remain
continuously employed throughout the '06 fiscal year.

Signing Bonus

Within 10 business days of your start date, you will be paid a signing bonus of
$100,000 less all applicable taxes. If you voluntarily terminate within 12
months of your start date, this amount must be repaid to Reynolds.

Stock

The company currently maintains a stock option program which makes one-time
grants to new hires at the executive level. Options are issued at the market
price on the day of grant. Options have a seven year life and vest over a three
year period with 33% of these options becoming exercisable each year. As a
sign-on bonus, we will grant you 150,000 stock options upon your start date.

As a sign-on bonus, we will also award you 25,000 restricted shares on your
start date. The components of the restricted shares are as follows: 12,500 will
have a 3 year time-based restriction and the remaining 12,500 will have both a 3
year time-based restriction and a performance-based restriction. The performance
measurement period begins on October 1 of the fiscal year in which the shares
are awarded and ends on September 30 three years later.

You will also be eligible for annual restricted share awards, as determined by
the Compensation Committee of the Board of Directors.

Stock Ownership Guidelines

The company has established stock ownership guidelines for executives. Under the
guidelines, as a reporting officer of Reynolds, you must meet the annual
ownership requirements in order to receive your full annual stock option grant.
As CFO, you must own 3 x your base salary within a five year period. Note that
your unvested restricted shares count towards this requirement.

Relocation

Your position is based in Dayton and thus we would expect you to make a full
relocation by Sept 30, 2005. The company provides a very comprehensive
relocation package. Please feel free to contact Human Resources at 937-485-8729
for assistance in relocating to the Dayton area.

Car Allowance

You will receive a bi-weekly car allowance in the amount of $358.00 to support
your ownership and operation of a late model car. This is a cash payment made
directly to you in your regular paycheck.

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Miscellaneous Perquisites

As an executive of Reynolds and Reynolds, you will be reimbursed up to $6,000
per year for tax preparation and financial and estate planning. Additionally,
health club fees will be reimbursed up to $1,500 per year for management
committee members. Finally, the company asks each executive to have an annual
physical examination and will pay for the exam up to $1,000.

Supplemental Retirement Plan

As an executive of Reynolds and Reynolds, you will participate in a
non-qualified supplemental benefit plan which provides supplemental retirement
income to you and your family in the event of retirement or death. This base
plan is a two-part benefit. You will also have an enhanced plan that is
described below. To receive payment of Part 1 or Part 2 on the base plan, you
must satisfy all the conditions for payment as defined in the plan document.

Part 1: Salary Continuation

The annual benefit equals 6.5% of your final average earnings (highest five
consecutive years from the last ten years of employment) paid as a monthly
annuity for life. To be vested in this benefit, you must have 15 years of
service with Reynolds and Reynolds. The benefit is reduced by .4% per month for
each month the first payment precedes the date you attain age 60. In the case of
death before payments begin, an equivalent benefit will be paid to your
beneficiary if the above requirements have been met at the time of your death.

Part 2: Basic Supplemental

This benefit is the difference between your actual Qualified Pension Plan
benefit and the Qualified Pension Plan benefit you would have received if it had
been calculated without regard to required IRS compensation limitations. The
benefit is reduced by .4% per month for each month the first payment precedes
the date you attain age 65. If you satisfied the service requirements as of your
date of death, benefit payments will be made to your beneficiary as set forth in
the plan document.

Enhanced SERP

You are also eligible for an enhanced SERP benefit which will, when integrated
with the retirement programs above, provide an annual payment of 4% of your
Average Annual Compensation for each year of service. This benefit is payable at
age 62, however, if you retire prior to age 62, this benefit will be reduced by
4.8% for each year. Included in this enhanced benefit is a guarantee of a
minimum annual benefit from all retirement plans of $170,000 after 5 years of
service and $350,000 after 10 years of service.

Separation following a Change-in-Control

As a key executive of the Reynolds, you will enter into a change-in-control
agreement with the company, under the same terms as applicable to other current
executive officers (other than the CEO), that protects you under specific
circumstances following a change in control (as defined in the agreement). A
copy of this agreement will be forwarded to you upon receipt of this signed
offer letter.

Severance

If you are involuntarily terminated without cause during your first year of
employment, you will be paid a severance benefit of 2 years base salary plus
100% of the targeted company and personal

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bonus less any base salary or bonus amounts previously paid. If you are
involuntarily terminated without cause during the second year of employment, you
will be paid a severance benefit of 12 months base salary plus 100% of the
targeted company and personal bonus. If you are involuntarily terminated without
cause after 2 years of service, your severance benefit will be 12 months of base
salary plus a pro-rated bonus. This severance benefit will not be paid in the
event there is a change in control as described above. Rather, you will only
receive the severance benefits described under the separate change in control
agreement.

Vacation

As an executive of Reynolds and Reynolds, you are entitled to five weeks
vacation annually.

Company-Wide Benefits

All employees participate in a flexible benefit program (options include
medical, dental, vision, life and disability insurance, spending accounts,
etc.), a 401(k) savings plan, and a defined benefit pension plan.

We believe the total compensation package for Reynolds and Reynolds executives,
as approved by the Board of Directors, is very competitive and attractive. This
offer letter and the benefits described herein are subject to the terms and
conditions of the various plans which are fully described in the Company's proxy
statement. In the future, should the Board make any changes in the executives'
compensation program, you will obviously be notified.

This offer is contingent upon satisfactorily passing a company medical exam
including a drug test, which will be arranged for you, any background
verifications which are part of our hiring process, and completion of the
Employment Eligibility Verification (I-9) process required by the Immigration
Department. It is also contingent on you signing the standard Officer Agreement
which contains non compete language.

We have enclosed two copies of the offer letter and we ask that you return one
to acknowledge your acceptance.

We are looking forward to your acceptance of our offer. I am confident that this
is an excellent opportunity for Reynolds and for you. You can have significant
impact at Reynolds! If you have any questions, or if we can provide any
additional information, please let me know.

Best regards,

Finbarr J. O'Neill
President and CEO

ACCEPTANCE

______________________       ______________
Greg Geswein                      Date

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