X0202 4 2004-06-01 0 0000853971 STANDARD MANAGEMENT CORP SMAN 0001035367 KNIESER MARTIAL R 10689 N. PENNSYLVANIA ST. INDIANAPOLIS IN 46280 0 1 0 0 President of wholly owned subs Employee Stock Option (right to buy) 3.7 2004-06-01 4 J 0 100000 3.7 A 2004-06-01 2014-06-01 Common Stock 100000 396355 D (1) The Option shall become exercisable with respect to 33,333 of the aggregate number of shares subject to the Option on June 01,2004, with respect to an additional 33,333 of the aggregate number of shares subject to the Option on June 1, 2005, and with respect to all of the remaining shares subject o the Option on June 1, 2006. Martial R. Knieser, M.D. 2004-06-30