Document:

Letter Agreement--James G. Clark, dated January 4, 2005

 Exhibit 10.4 
  
 [On Education Lending Group, Inc. Letterhead] 
  
 January 4, 2005 
  
 Mr. James G. Clark 
 3525 Del Mar Heights Road, Suite 615 
 San Diego, CA 92130 
  
 Dear Jim: 
  
 This letter is being written to you
in connection with the execution of an Agreement and Plan of Merger (the “Merger Agreement”) between and among Education Lending Group, Inc. (“EDLG”), CIT Group Inc. (“CIT”), and a wholly-owned subsidiary of CIT. You
and we have agreed that if the acquisition of EDLG by CIT in the manner contemplated by the Merger Agreement occurs, you will continue in your current position as Executive Vice President and Chief Financial Officer of EDLG on the terms and
conditions specified in your current employment agreement which was entered into between you and EDLG, under its former name, Direct III Marketing, on September 15, 2001 (the “Employment Agreement”), with the amendments made below in this
letter. Assuming you agree that this letter correctly sets forth the matters we have agreed upon, you should countersign both original copies of this letter in the place provided, retain one fully executed copy for your records and return the other
copy to me. 
  
 If the acquisition of EDLG by CIT in the manner contemplated by
the Merger Agreement occurs, the following additional terms will apply to your employment by EDLG from and after the date (the “Acquisition Date”) of the purchase of shares in the Offer (as defined in the Merger Agreement): 
  
 1. Term. The term of your employment will continue from the Effective Time (as
defined in the Merger Agreement) through the date (the “End Date”) that is exactly five calendar months after the Effective Time. Assuming your employment with EDLG has not otherwise been terminated before the End Date, your employment
will terminate on the End Date. 
  
 2. Compensation. 
  
 (a) 2004 Bonus. You will be entitled to payment of your 2004 bonus on
the terms and conditions generally applicable to continuing employees of EDLG, without regard to whether you remain in the employ of EDLG at the time that bonus becomes payable. 
  
 (b) 2005 Compensation. For the period from January 1, 2005 through the End Date, you will be paid base salary at a
rate equal to 104% of the rate that was in effect during 2004 and, in addition, you will be paid, in lieu of an annual bonus for 2005, an amount equal to 104% of your 2004 bonus multiplied by a fraction, the numerator of which is the number of days
from January 1, 2005 through the End Date, inclusive, and the denominator of which is 365. The base salary component will be paid to you in accordance with CIT’s normal payroll practices. The payment in lieu of bonus will be paid to you not
later than the End Date. 
  

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 3. Effect of Transaction and Termination. EDLG acknowledges that the purchase of shares in the Offer constitutes a
Change of Control for purposes of your Employment Agreement and that, absent this letter, you would be entitled to all of the payments and benefits specified in Section 10(e) of the Employment Agreement if you chose to terminate your employment with
EDLG on or after the Acquisition Date. EDLG therefore agrees that, in consideration of your agreement to remain in the full-time employ of EDLG through the End Date, upon termination of your employment with EDLG at any time on or after the
Acquisition Date for any reason whatsoever (including, without limitation, death, disability, for Cause, or without Cause), your employment with EDLG will be deemed to have been terminated by EDLG without Cause during the two year period beginning
on the date of a Change of Control with the result that you will be entitled to the payments and benefits specified in Section 10(e) of the Employment Agreement. 
  
 4. No Other Changes to Employment Agreement. Except as specifically modified by this letter, all of the terms in your Employment
Agreement continue in full force and effect. 
  
 Jim, we appreciate your
willingness to continue working with us during the five months after the Effective Time. 
  
 Sincerely, 
  
 Education Lending Group, Inc.

  

			
	By	 	 /s/ Douglas L. Feist

	 	 	Douglas L. Feist
	 	 	EVP and Secretary
	
	Agreed this 4th day of January,
2005:
	
	 /s/ James G. Clark

	JAMES G. CLARK

  

 2Amendment Agreement--Douglas L. Feist, dated January 4, 2005

 Exhibit 10.5 
  
 Amendment Agreement 
  
 Amendment Agreement (the “Amendment Agreement”), effective as of January 4, 2005, by and between Educational Lending Group, Inc.,
formerly known as Direct III Marketing, Inc. (“EDLG”) and Douglas L. Feist (“Executive”). 
  
 WHEREAS, EDLG, CIT Group, Inc. (“CIT”) and a wholly-owned subsidiary of CIT have entered into an Agreement and Plan of Merger, effective
as of the date first set forth above (the “Merger Agreement”); 
  
 WHEREAS, EDLG and Executive are parties to an Employment Agreement, dated as of September 15, 2001 (the “Agreement”); and 
  
 WHEREAS, EDLG and Executive now desire to amend the Agreement in the manner contemplated below, effective upon the
acquisition of EDLG by CIT in the manner contemplated by the Merger Agreement; 
  
 NOW, THEREFORE, the parties hereby agree as follows: 
  
 1. Effective Date. The amendments set forth below shall be effective as of the Effective Time (as such term is defined in the Merger Agreement), and such amendments are expressly made conditional upon the
acquisition of EDLG by CIT as contemplated by the Merger Agreement. If EDLG is not acquired by CIT as contemplated by the Merger Agreement, this Amendment Agreement shall be of no force and effect. 
  
 2. Term. As of the Effective Time, Section 1 of the Agreement is
hereby amended to provide that the Employment Period shall cease to be “evergreen” but shall instead be a fixed period (without further extension, unless subsequently agreed to in writing by the parties) commencing at the Effective Time
and ending on the third anniversary of the Effective Time, unless terminated earlier in accordance with the provisions of Section 9 of the Agreement. Accordingly, the Agreement is further amended to delete the last sentence of Section 9(d).

  
 3. Duties and Responsibilities. As of the Effective
Time, Section 2 of the Agreement and all related provisions thereof are hereby amended (i) to eliminate all requirements that Executive be a member of the Board of Directors of EDLG and (ii) to provide that, in addition to reporting to the Board of
Directors of EDLG, Executive shall also report to such individual officer or officers of CIT as CIT may from time to time specify to Executive (the “CIT Officers”). All references under the Agreement to Board of Directors shall also
include a reference to such CIT Officers, unless the context clearly requires otherwise. 
  
 4. Compensation and Benefits. The provisions of Section 3(c) of the Agreement shall cease to apply for periods on and after the Effective Time. On and after the Effective Time, Executive shall be eligible to
participate in any retention or CIT equity arrangement made available to executive officers of EDLG generally, subject to the terms and provisions of each such arrangement. 
  

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 5. Good Reason. As of the Effective Time, the definition of “Good Reason” in Section
9(f) of the Agreement is deleted in its entirety and replaced with the following: 
  
 Executive shall be deemed to have “Good Reason” to terminate Executive’s employment under this Agreement if, at any time during the two (2) year period beginning on the date of a Change in Control, (i)
Executive is demoted from the position of General Counsel of EDLG, except that it shall not be an event of Good Reason if Executive ceases to be General Counsel but is assigned to another senior executive position within the Company that is
reasonably acceptable to Executive, (ii) Executive’s base salary is reduced below its level as in effect immediately before the occurrence of the Change in Control (such salary to be calculated without regard to any minimum guaranteed bonus) or
(iii) Executive is advised by EDLG that his principal place of employment is being relocated without his consent to a site more than thirty (30) miles from Executive’s principal place of employment immediately before the occurrence of the
Change in Control. Notwithstanding the above, Executive shall have no right to resign for Good Reason as a result of (x) any change to his position, duties or responsibilities as a result of the occurrence of the transactions contemplated by the
Merger Agreement, (y) Executive ceasing to be a member of the Board of Directors or (z) any change to Executive’s position, duties or responsibilities resulting from EDLG ceasing to be a public company in connection with the consummation of the
transactions contemplated by the Merger Agreement. For all purposes of the Agreement, no transaction occurring after the Effective Time shall constitute a Change in Control, and the provisions of Section 14 shall not apply to any such transaction
occurring after the Effective Time. 
  
 6. Protective
Covenants. As of the Effective Time, Sections 11(b), 11(c) and 11(d) of the Agreement are deleted in their entirety and replaced with the following: 
  
 (b) Non-Solicitation. During the Restricted Period (as defined below), Executive shall not (i) solicit, divert or take away, or
attempt to divert or take away, either directly or indirectly, any of EDLG’s customers or clients, members or patrons or any other person with whom Executive knows or has reason to know then has a business or prospective business relationship
with EDLG or (ii) recruit or solicit any individual who is then an employee or other service provider to EDLG or any individual who was an employee or service provider to EDLG within the then most recent three-month period for employment or
retention with Executive or any person or entity other than the EDLG with whom Executive is then associated. For purposes of clause (ii) of the previous sentence, “recruit or solicit” means directly or indirectly to initiate
correspondence, a telephone call, e-mail or other form of oral, written or electronic communication or a personal meeting with respect to the retention of such individual or to facilitate any of the foregoing by a third party. 
  
 (c) Non-Competition. During the Restricted Period,
Executive shall not, directly or indirectly, without the prior written consent of the CIT Officers, own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be connected as an officer, employee,
partner, stockholder, consultant or otherwise, in any business or organization 

  

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that directly or indirectly competes with the Company’s Business (as hereinafter defined), except that Executive shall be permitted to make a passive
investment in the stock of a publicly traded company in the manner contemplated by Section 2(c) of the Agreement. The “Business” shall mean student loan origination, servicing, purchasing, selling, and securitization; providing or
marketing student loan products, services, or solutions to students, parents, schools, alumni associations or similar groups; originating or purchasing guaranteed student loans or consolidation loans; offering or purchasing alternative supplemental
loans guaranteed by third-party guarantors; selling originated loans to the secondary market; earning revenue by interest income or otherwise on any of the foregoing loans; offering consolidation loan products; or any other business activity in
which EDLG is engaged during the Restricted Period or any business or activity materially related to any of the foregoing. 
  
 (d) Equitable Relief. In addition to other remedies provided by law or equity, notwithstanding Section 13 of the Agreement, upon
breach by Executive of any of the restrictions contained in this Section 11, EDLG shall be entitled to seek through a court a temporary or permanent injunction against Executive prohibiting any further breach of any such restrictions. 
  
 (e) Definitions. Anything in the Agreement to the
contrary notwithstanding, for purposes of this Section 11, (i) “EDLG” shall include EDLG and each direct or indirect subsidiary thereof, and (ii) “Restricted Period” shall mean the Employment Period or the period
ending on the third anniversary of the Effective Time, whichever period ends earlier. 
  
 7. Miscellaneous. 
  
 (a)
The Agreement and this Amendment Agreement shall constitute a single agreement among the parties with respect to the subject matter thereof and shall be construed and interpreted accordingly; however, in the event of any conflict between the terms
of the Agreement and the Amendment Agreement, the Amendment Agreement shall control. 
  
 (b) Section 15 of the Agreement shall refer to the Agreement as amended by the Amendment Agreement. 
  
 (c) This Amendment Agreement shall be governed by the laws of the State of Delaware. 
  
 (d) Following the Effective Time, a copy of any notice from Executive to EDLG shall also be sent to the General Counsel of
CIT. 
  
 (e) This Amendment Agreement may be amended only by a
writing signed by the parties hereto. 
  
 IN WITNESS WHEREOF, the
parties have signed this Amendment Agreement as of the day and year first written above. 
  

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	EDLG:	 	 	 	Executive:
			
	 EDUCATION LENDING GROUP, INC.,
 a Delaware
corporation
	 	 	 	 
				
	By:	 	 /s/ James G. Clark

	 	 	 	 /s/ Douglas L. Feist

	Name:	 	James G. Clark	 	 	 	DOUGLAS L. FEIST
	Title:	 	EVP and Chief Financial Officer	 	 	 	 

  

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