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                                                                    Exhibit 10.7
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                           TRANSFER AND SALE AGREEMENT

                                 by and between

                          HARLEY-DAVIDSON CREDIT CORP.,
                                    as Seller

                                       and

                     HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,

                                  as Purchaser

                           Dated as of August 1, 2001

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                                TABLE OF CONTENTS
<Table>
<S>                                                                                                <C>
ARTICLE I  DEFINITION...............................................................................1

   SECTION 1.01.    GENERAL.........................................................................1

ARTICLE II TRANSFER OF CONTRACTS; ASSIGNMENT OF AGREEMENT...........................................1

   SECTION 2.01.    CLOSING.........................................................................1
   SECTION 2.02.    CONDITIONS TO THE CLOSING.......................................................2
   SECTION 2.03.    ASSIGNMENT OF AGREEMENT.........................................................3
   SECTION 2.04.    SUBSEQUENT CONTRACTS............................................................4

ARTICLE III REPRESENTATIONS AND WARRANTIES..........................................................5

   SECTION 3.01.    REPRESENTATIONS AND WARRANTIES REGARDING SELLER.................................6
   SECTION 3.02.    REPRESENTATIONS AND WARRANTIES REGARDING EACH CONTRACT..........................7
   SECTION 3.03.    REPRESENTATIONS AND WARRANTIES REGARDING THE CONTRACTS IN THE AGGREGATE........11
   SECTION 3.04.    REPRESENTATIONS AND WARRANTIES REGARDING THE CONTRACT FILES....................12

ARTICLE IV PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS.............................13

   SECTION 4.01.    CUSTODY OF CONTRACTS...........................................................13
   SECTION 4.02.    FILING.........................................................................13
   SECTION 4.03.     NAME CHANGE OR RELOCATION.....................................................13
   SECTION 4.04.    COSTS AND EXPENSES.............................................................13
   SECTION 4.05.    SALE TREATMENT.................................................................13
   SECTION 4.06.    SEPARATENESS FROM TRUST DEPOSITOR..............................................14

ARTICLE V REMEDIES UPON MISREPRESENTATION..........................................................14

   SECTION 5.01.    REPURCHASES OF CONTRACTS FOR BREACH OF REPRESENTATIONS AND WARRANTIES..........14
   SECTION 5.02.    SELLER'S REPURCHASE OPTION.....................................................14

ARTICLE VI INDEMNITIES.............................................................................15

   SECTION 6.01.    SELLER INDEMNIFICATION.........................................................15
   SECTION 6.02.     LIABILITIES TO OBLIGORS.......................................................15
   SECTION 6.03.    TAX INDEMNIFICATION............................................................15
   SECTION 6.04.    OPERATION OF INDEMNITIES.......................................................16

ARTICLE VII MISCELLANEOUS..........................................................................16

   SECTION 7.01.    PROHIBITED TRANSACTIONS WITH RESPECT TO THE TRUST..............................16
   SECTION 7.02.    MERGER OR CONSOLIDATION........................................................16
   SECTION 7.03.    TERMINATION....................................................................17
   SECTION 7.04.    ASSIGNMENT OR DELEGATION BY SELLER.............................................17
   SECTION 7.05.    AMENDMENT......................................................................17
   SECTION 7.06.    NOTICES........................................................................18
   SECTION 7.07.    MERGER AND INTEGRATION.........................................................18
   SECTION 7.08.    HEADINGS.......................................................................18
   SECTION 7.09.    GOVERNING LAW..................................................................18
</Table>

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<Table>
<Caption>
EXHIBITS
<S>                     <C>
Exhibit A               Form of Assignment
Exhibit B               Form of Officer's Certificate
Exhibit C               Form of Subsequent Purchase Agreement
</Table>

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     THIS AGREEMENT, dated as of August 1, 2001, is made by and between
Harley-Davidson Credit Corp., a Nevada corporation, as seller hereunder
(together with its successors and assigns "HARLEY-DAVIDSON CREDIT" or "SELLER"),
and Harley-Davidson Customer Funding Corp., a Nevada corporation and
wholly-owned subsidiary of Seller (together with its successors and assigns
"TRUST DEPOSITOR"), as purchaser hereunder.

     WHEREAS, in the regular course of its business, Seller purchases and
services motorcycle conditional sales contracts from Harley-Davidson motorcycle
retailers, each of which contracts provides for installment payment obligations
by or on behalf of the retailer's customer/purchaser and grants a security
interest in a Harley-Davidson motorcycle in order to secure such obligations;

     WHEREAS, Seller and Trust Depositor wish to set forth the terms and
conditions pursuant to which Trust Depositor will acquire from time to time the
"CONTRACT ASSETS," as hereinafter defined; and

     WHEREAS, Trust Depositor intends concurrently with its purchases from time
to time of Contract Assets hereunder to convey all right, title and interest in
such Contract Assets to Harley-Davidson Motorcycle Trust 2001-2 (the "TRUST")
pursuant to the Sale and Servicing Agreement dated as of August 1, 2001 by and
among Trust Depositor, Harley-Davidson Credit, as Servicer, Harley-Davidson
Motorcycle Trust 2001-2, as issuer (the "ISSUER") and Bank One, National
Association, as Indenture Trustee (as amended, supplemented or otherwise
modified from time to time, the "SALE AND SERVICING AGREEMENT"), executed
concurrently herewith;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
hereinafter set forth, Seller and Trust Depositor agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.01.   GENERAL. Unless otherwise defined in this Agreement,
capitalized terms used herein (including in the preamble above) shall have the
meanings assigned to them in the Sale and Servicing Agreement.

                                   ARTICLE II

                 TRANSFER OF CONTRACTS; ASSIGNMENT OF AGREEMENT

     SECTION 2.01.   CLOSING. Subject to and upon the terms and conditions set
forth in this Agreement, Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to Trust Depositor, in consideration of Trust Depositor's
payment of $302,227,604.15 in cash as the purchase price therefor, (i) all the
right, title and interest of Seller in and to the Initial Contracts listed on
the initial List of Contracts in effect on the Closing Date (including, without
limitation,

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all security interests and all rights to receive payments which are collected
pursuant thereto on or after the Initial Cutoff Date, including any liquidation
proceeds therefrom, but excluding any rights to receive payments which were
collected pursuant thereto prior to the Initial Cutoff Date), (ii) all rights of
Seller under any physical damage or other individual insurance policy (including
a "FORCED PLACED" policy, if any) relating to any such Contract, an Obligor or a
Motorcycle securing such Contract, (iii) all security interests in each such
Motorcycle, (iv) all documents contained in the related Contract Files, (v) all
rights of Seller in the Lockbox, Lockbox Account and related Lockbox Agreement
to the extent they relate to the Contracts, (vi) all rights (but not the
obligations) of the Seller under any motorcycle dealer agreements between the
dealers (i.e. the originators of the Contracts) and the Seller and (vii) all
proceeds and products of the foregoing (items (i) - (vii), together with the
additional assets referred to in Section 2.04 below which may be transferred
from time to time in respect of Subsequent Contracts, being collectively
referred to herein as the "CONTRACT ASSETS"). Although Seller and Trust
Depositor agree that any such transfer is intended to be a sale of ownership in
the Contract Assets, rather than the mere granting of a security interest to
secure a borrowing, in the event such transfer is deemed to be of a mere
security interest to secure indebtedness, Seller shall be deemed to have granted
Trust Depositor a perfected first priority security interest in such Contract
Assets and this Agreement shall constitute a security agreement under applicable
law. If such transfer is deemed to be the mere granting of a security interest
to secure a borrowing, Trust Depositor may, to secure Trust Depositor's own
borrowing under the Sale and Servicing Agreement (to the extent that the
transfer of the Contract Assets thereunder is deemed to be a mere granting of a
security interest to secure a borrowing) repledge and reassign (i) all or a
portion of the Contract Assets pledged to Trust Depositor and not released from
the security interest of this Agreement at the time of such pledge and
assignment, and (ii) all proceeds thereof. Such repledge and reassignment may be
made by Trust Depositor with or without a repledge and reassignment by Trust
Depositor of its rights under this Agreement, and without further notice to or
acknowledgment from Seller. Seller waives, to the extent permitted by applicable
law, all claims, causes of action and remedies, whether legal or equitable
(including any right of setoff), against Trust Depositor or any assignee of
Trust Depositor relating to such action by Trust Depositor in connection with
the transactions contemplated by the Sale and Servicing Agreement.

     SECTION 2.02.  CONDITIONS TO THE CLOSING. On or before the Closing Date,
Seller shall deliver or cause to be delivered to Trust Depositor each of the
documents, certificates and other items as follows:

            (a)     The initial List of Contracts, certified by the Chairman of
     the Board, President or any Vice President of Seller together with an
     Assignment substantially in the form attached as EXHIBIT A hereto.

            (b)     A certificate of an officer of Seller substantially in the
     form of EXHIBIT B hereto.

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            (c)     An opinion of counsel for Seller substantially in the form
     of EXHIBIT D to the Sale and Servicing Agreement.

            (d)     A letter or letters from Arthur Andersen LLP, or another
     nationally recognized accounting firm, addressed to Trust Depositor and the
     Issuer and the Trustees and stating that such firm has reviewed a sample of
     the Initial Contracts and performed specific procedures for such sample
     with respect to certain contract terms and identifying those Initial
     Contracts which do not so conform.

            (e)     Copies of resolutions of the Board of Directors of Seller or
     of the Executive Committee of the Board of Directors of Seller approving
     the execution, delivery and performance of this Agreement and the
     transactions contemplated hereunder, certified in each case by the
     Secretary or an Assistant Secretary of Seller.

            (f)     Officially certified recent evidence of due incorporation
     and good standing of Seller under the laws of Nevada.

            (g)     Evidence of proper filing with the appropriate office in
     Nevada of a UCC financing statement naming Seller as debtor/seller, naming
     Trust Depositor as secured party/purchaser and the Owner Trust as assignee,
     and listing the Contract Assets as collateral as well as evidence of proper
     filing with the appropriate office in Delaware of a UCC financing statement
     naming the Issuer as debtor, naming the Indenture Trustee, as assignee, and
     listing the Contract Assets as collateral.

            (h)     An Officer's Certificate from Seller confirming that
     Seller's compliance officer has reviewed the original of each Initial
     Contract and each related Contract File, that each Initial Contract and
     related Contract File conforms in all material respects with the initial
     List of Contracts and each such Contract File is complete, that each
     document required be an original, and that the face of each original
     Initial Contract has been stamped with the following notation:

                   "This Contract/Note is subject to a security interest granted
            to Harley-Davidson Motorcycle Trust 2001-2. A UCC1 financing
            statement covering this Contract/Note has been filed with the
            Secretary of State of the State of Nevada. Such lien will be
            released only in connection with appropriate filings in such
            offices. Consequently, potential purchasers of this Contract/Note
            must refer to such filings to determine whether such lien has been
            released."

            (i)     The documents, certificates and other items described in
     Section 2.02 of the Sale and Servicing Agreement, to the extent not already
     described above.

     SECTION 2.03.  ASSIGNMENT OF AGREEMENT. Trust Depositor has the right to
assign its interest under this Agreement to the Issuer as may be required to
effect the purposes of the Sale

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and Servicing Agreement, without further notice to, or consent of, Seller, and
the Issuer shall succeed to such of the rights of Trust Depositor hereunder as
shall be so assigned. Seller acknowledges that, pursuant to the Sale and
Servicing Agreement, Trust Depositor will assign all of its right, title and
interest in and to the Contract Assets and its right to exercise the remedies
created by Section 5.01 hereof for breaches of representations and warranties of
Seller contained in Sections 3.01, 3.02, 3.03 and 3.04 hereof to the Issuer and
the Indenture Trustee for the benefit of the Noteholders. Seller agrees that,
upon such assignment to the Issuer and the Indenture Trustee, such
representations will run to and be for the benefit of the Issuer and the
Indenture Trustee and the Issuer and the Indenture Trustee may enforce directly
without joinder of Trust Depositor, the obligations of Seller set forth herein.

     SECTION 2.04.  SUBSEQUENT CONTRACTS. (a) Subject to and upon the terms
and conditions set forth in paragraph (b) below and in the related Subsequent
Purchase Agreement, Seller hereby agrees to sell, transfer, assign, set over and
otherwise convey to Trust Depositor, in consideration of Trust Depositor's
payment on the related Subsequent Transfer Date of the purchase price therefor
(as set forth in the related Subsequent Purchase Agreement), and Trust Depositor
hereby agrees to purchase, (i) all the right, title and interest of Seller in
and to the Subsequent Contracts listed on the related Subsequent List of
Contracts (including, without limitation, all security interests and all rights
to receive payments which are collected pursuant thereto on or after the
applicable Subsequent Cutoff Date, including any liquidation proceeds therefrom,
but excluding any rights to receive payments which were collected pursuant
thereto prior to such Subsequent Cutoff Date), (ii) all rights of Seller under
any physical damage or other individual insurance policy (including a "FORCED
PLACED" policy, if any) relating to any such Contract, an Obligor or a
Motorcycle securing such Contract, (iii) all security interests in each such
Motorcycle, (iv) all documents contained in the related Contract Files, (v) all
rights of Seller in the Lockbox, Lockbox Account and related Lockbox Agreement
to the extent they relate to the Contracts, (vi) all rights (but not the
obligations) of the Seller under any motorcycle dealer agreements between the
dealers (I.E. the originators of such Subsequent Contracts) and the Seller and
(vii) all proceeds and products of the foregoing (items (i) - (vii), upon
consummation of any above-described purchase, becoming part of the "CONTRACT
ASSETS"). Seller agrees, subject to the terms and conditions herein applicable
to transfers of Subsequent Contracts, to sell an aggregate Principal Balance of
Subsequent Contracts at or prior to the end of the Funding Period equal to the
Pre-Funded Amount on the Closing Date.

            (b)     Seller shall transfer to Trust Depositor, and Trust
Depositor shall purchase, the Subsequent Contracts and related assets to be
transferred on any Subsequent Transfer Date only upon the satisfaction of each
of the following conditions on or prior to the Subsequent Transfer Date:

            (i)     The Seller shall have provided the Trustees, the
     Underwriters and the Rating Agencies with a timely Addition Notice and
     shall have provided any information reasonably requested by any of the
     foregoing with respect to the Subsequent Contracts;

            (ii)    the Funding Period shall not have terminated;

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            (iii)   the Seller shall have delivered to the Trust Depositor a
     duly executed Purchase Agreement and Assignment in substantially the form
     of EXHIBIT C hereto (the "SUBSEQUENT PURCHASE AGREEMENT"), which shall
     include a Subsequent List of Contracts listing the Subsequent Contracts
     being purchased;

            (iv)    as of each Subsequent Transfer Date, neither the Seller nor
     the Trust Depositor was insolvent nor will either of them have been made
     insolvent by such transfer nor is either of them aware of any pending
     insolvency;

            (v)     each Rating Agency shall have notified the Trust Depositor
     and the Trustees in writing that following such transfer, and the transfer
     immediately thereafter of the Subsequent Contracts to the Trust, the Class
     A-1 Notes and the Class A-2 Notes will be rated in the highest rating
     category by such Rating Agency and the Class B Notes will be rated at least
     "A" by Standard & Poor's and "A2" by Moody's;

            (vi)    such addition will not result in a material adverse tax
     consequence to the Issuer or the Noteholders as evidenced by an Opinion of
     Counsel to be delivered by the Seller to the Issuer, the Trustees, and the
     Underwriters;

            (vii)   the Seller shall have delivered to the Rating Agencies and
     to the Underwriters one or more opinions of counsel with respect to the
     transfer of the Subsequent Contracts substantially in the form of the
     opinions of counsel delivered to such Persons on the Closing Date;

            (viii)  the Seller shall have taken any action necessary to maintain
     the first perfected ownership interest of the Trust in the Trust Corpus and
     the first perfected security interest of the Trust Depositor in the
     Contract Assets, the Trust in the Trust Corpus and the Indenture Trustee in
     the Reserve Fund Deposits; and

            (ix)    no selection procedures believed by the Seller to be adverse
     to the interests of the Noteholders shall have been utilized in selecting
     the Subsequent Contracts.

     (c)    Seller agrees to pay all reasonable out-of-pocket expenses in
connection with any request for the conveyance of Subsequent Contracts, whether
or not such conveyance is actually consummated.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

     Seller makes the following representations and warranties, on which Trust
Depositor will rely in purchasing the initial Contract Assets on the Closing
Date (and any Subsequent Contracts on the related Subsequent Transfer Date) and
concurrently reconveying the same to the Trust, and on which the Trust and the
Noteholders will rely under the Sale and Servicing Agreement. Such
representations speak as of the execution and delivery of this Agreement and as
of the

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Closing Date in the case of the Initial Contracts, and as of the applicable
Subsequent Transfer Date in the case of Subsequent Contracts, but shall survive
the sale, transfer and assignment of the Contracts to the Trust and the pledge
of the Contracts to the Indenture Trustee. The repurchase obligation of Seller
set forth in Section 5.01 below and in Section 7.08 of the Sale and Servicing
Agreement constitutes the sole remedy available for a breach of a representation
or warranty of Seller set forth in Section 3.02, 3.03 or 3.04 of this Agreement.

     SECTION 3.01.  REPRESENTATIONS AND WARRANTIES REGARDING SELLER. Seller
represents and warrants, as of the execution and delivery of this Agreement and
as of the Closing Date, in the case of the Initial Contracts, and as of the
applicable Subsequent Transfer Date, in the case of Subsequent Contracts, that:

            (a)     ORGANIZATION AND GOOD STANDING. Seller is a corporation duly
     organized, validly existing and in good standing under the laws of the
     jurisdiction of its organization and has the corporate power to own its
     assets and to transact the business in which it is currently engaged.
     Seller is duly qualified to do business as a foreign corporation and is in
     good standing in each jurisdiction in which the character of the business
     transacted by it or properties owned or leased by it requires such
     qualification and in which the failure so to qualify would have a material
     adverse effect on the business, properties, assets, or condition (financial
     or otherwise) of Seller or Trust Depositor. Seller is properly licensed in
     each jurisdiction to the extent required by the laws of such jurisdiction
     to service the Contracts in accordance with the terms of the Sale and
     Servicing Agreement.

            (b)     AUTHORIZATION; BINDING OBLIGATION. Seller has the power and
     authority to make, execute, deliver and perform this Agreement and the
     other Transaction Documents to which the Seller is a party and all of the
     transactions contemplated under this Agreement and the other Transaction
     Documents to which the Seller is a party, and has taken all necessary
     corporate action to authorize the execution, delivery and performance of
     this Agreement and the other Transaction Documents to which the Seller is a
     party. This Agreement and the other Transaction Documents to which the
     Seller is a party constitute the legal, valid and binding obligation of
     Seller enforceable in accordance with their terms, except as enforcement of
     such terms may be limited by bankruptcy, insolvency or similar laws
     affecting the enforcement of creditors' rights generally and by the
     availability of equitable remedies.

            (c)     NO CONSENT REQUIRED. Seller is not required to obtain the
     consent of any other party or any consent, license, approval or
     authorization from, or registration or declaration with, any governmental
     authority, bureau or agency in connection with the execution, delivery,
     performance, validity or enforceability of this Agreement and the other
     Transaction Documents to which the Seller is a party.

            (d)     NO VIOLATIONS. Seller's execution, delivery and performance
            of this Agreement and the other Transaction Documents to which the
     Seller is a party will not violate any provision of any existing law or
     regulation or any order or decree of any court

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     or the Articles of Incorporation or Bylaws of Seller, or constitute a
     material breach of any mortgage, indenture, contract or other agreement to
     which Seller is a party or by which Seller or any of Seller's properties
     may be bound.

            (e)     LITIGATION. No litigation or administrative proceeding of or
     before any court, tribunal or governmental body is currently pending, or to
     the knowledge of Seller threatened, against Seller or any of its properties
     or with respect to this Agreement or any other Transaction Document to
     which the Seller is a party which, if adversely determined, would in the
     opinion of Seller have a material adverse effect on the business,
     properties, assets or condition (financial or other) of Seller or the
     transactions contemplated by this Agreement or any other Transaction
     Document to which the Seller is a party.

            (f)     STATE OF INCORPORATION; NAME; NO CHANGES. Seller's state of
     incorporation is the State of Nevada. Seller's exact legal name is as set
     forth in the first paragraph of this Agreement. Seller has not changed its
     name whether by amendment of its Articles of Incorporation, by
     reorganization or otherwise, and has not changed its state of
     incorporation, within the four months preceding the Closing Date.

            (g)     OPERATIONS. Approximately 5.0% of the aggregate principal
     balance of contracts financed from time to time by the Seller are secured
     by motorcycles manufactured by Buell.

            (h)     SOLVENCY. The Seller, after giving effect to the conveyances
     made by it hereunder, is Solvent.

     SECTION 3.02.  REPRESENTATIONS AND WARRANTIES REGARDING EACH CONTRACT.
Seller represents and warrants as to each Contract as of the execution and
delivery of this Agreement and as of the Closing Date, in the case of the
Initial Contracts, and as of the applicable Subsequent Transfer Date, in the
case of Subsequent Contracts, that:

            (a)     LIST OF CONTRACTS. The information set forth in the List of
     Contracts (or Subsequent List of Contracts, in the case of Subsequent
     Contracts) is true, complete and correct in all material respects as of the
     Initial Cutoff Date or applicable Subsequent Cutoff Date, as the case may
     be.

            (b)     PAYMENTS. As of the Initial Cutoff Date or applicable
     Subsequent Cutoff Date, as the case may be, the most recent scheduled
     payment with respect to any Contract either had been made or was not
     delinquent for more than 30 days. To the best of Seller's knowledge, all
     payments made on each Contract were made by the respective Obligor.

            (c)     NO WAIVERS. As of the Closing Date (or the applicable
     Subsequent Transfer Date, in the case of Subsequent Contracts), the terms
     of the Contracts have not

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     been waived, altered or modified in any respect, except by instruments or
     documents included in the related Contract File.

            (d)     BINDING OBLIGATION. Each Contract is a legal, valid and
     binding payment obligation of the Obligor thereunder and is enforceable in
     accordance with its terms, except as such enforceability may be limited by
     insolvency, bankruptcy, moratorium, reorganization, or other similar laws
     affecting the enforcement of creditors' rights generally.

            (e)     NO DEFENSES. No Contract is subject to any right of
     rescission, setoff, counterclaim or defense, including the defense of
     usury, and the operation of any of the terms of such Contract or the
     exercise of any right thereunder will not render the Contract unenforceable
     in whole or in part or subject to any right of rescission, setoff,
     counterclaim or defense, including the defense of usury, and no such right
     of rescission, setoff, counterclaim or defense has been asserted with
     respect thereto.

            (f)     INSURANCE. As of the origination date of each Contract (or
     the applicable Subsequent Transfer Date in the case of Subsequent
     Contracts), the related Motorcycle securing each Contract is covered by
     physical damage insurance (i) in an amount not less than the value of the
     Motorcycle at the time of origination of the Contract, (ii) naming Seller
     as a loss payee and (iii) insuring against loss and damage due to fire,
     theft, transportation, collision and other risks covered by comprehensive
     coverage, and all premiums due on such insurance have been paid in full
     from the date of the Contract's origination.

            (g)     ORIGINATION. Each Contract was originated by a Harley-
     Davidson motorcycle dealer in the regular course of its business which
     dealer had all necessary licenses and permits to originate the Contracts in
     the state where such dealer was located, was fully and properly executed by
     the parties thereto, and has been purchased by Seller in the regular course
     of its business. Each Contract was sold by such motorcycle dealer to the
     Seller without any fraud or misrepresentation on the part of such
     motorcycle dealer.

            (h)     LAWFUL ASSIGNMENT. No Contract was originated in or is
     subject to the laws of any jurisdiction whose laws would make the sale,
     transfer and assignment of the Contract under this Agreement or under the
     Sale and Servicing Agreement or the pledge of the Contract under the
     Indenture unlawful, void or voidable.

            (i)     COMPLIANCE WITH LAW. None of the Contracts, the origination
     of the Contracts by the dealers, the purchase of the Contracts by the
     Seller, the sale of the Contracts by the Seller to the Trust Depositor or
     by the Trust Depositor to the Trust, or any combination of the foregoing,
     violated at the time of origination or as of the Closing Date or as of any
     Subsequent Transfer Date, as applicable, any requirement of any federal,
     state or local law and regulations thereunder, including, without
     limitation, usury,

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     truth in lending, motor vehicle installment loan and equal credit
     opportunity laws, applicable to the Contracts and the sale of Motorcycles.
     Seller shall, for at least the period of this Agreement, maintain in its
     possession, available for the Trust Depositor's and the Trustees'
     inspection, and shall deliver to Trust Depositor or the Trustee upon
     demand, evidence of compliance with all such requirements.

            (j)     CONTRACT IN FORCE. As of the Closing Date (or the applicable
     Subsequent Transfer Date in the case of Subsequent Contracts), no Contract
     has been satisfied or subordinated in whole or in part or rescinded, and
     the related Motorcycle securing any Contract has not been released from the
     lien of the Contract in whole or in part.

            (k)     VALID SECURITY INTEREST. Each Contract creates a valid,
     subsisting and enforceable first priority perfected security interest in
     favor of Seller in the Motorcycle covered thereby, and such security
     interest has been assigned by Seller to the Trust Depositor. The original
     certificate of title, certificate of lien or other notification (the "LIEN
     CERTIFICATE") issued by the body responsible for the registration of, and
     the issuance of certificates of title relating to, motor vehicles and liens
     thereon (the "REGISTRAR OF TITLES") of the applicable state to a secured
     party which indicates the lien of the secured party on the Motorcycle is
     recorded on the original certificate of title, and the original certificate
     of title for each Motorcycle, show, or if a new or replacement Lien
     Certificate is being applied for with respect to such Motorcycle the Lien
     Certificate will be received within 180 days of the Closing Date (or the
     applicable Subsequent Transfer Date in the case of Subsequent Contracts)
     and will show, the Seller as original secured party under each Contract as
     the holder of a first priority security interest in such Motorcycle. With
     respect to each Contract for which the Lien Certificate has not yet been
     returned from the Registrar of Titles, the Seller has received written
     evidence from the related dealer that such Lien Certificate showing the
     Seller as lienholder has been applied for. The Seller's security interest
     has been validly assigned by the Seller to the Trust Depositor and by the
     Trust Depositor to the Issuer and Owner Trustee pursuant to this Agreement.
     Immediately after the sale, each Contract will be secured by an enforceable
     and perfected first priority security interest in the Motorcycle in favor
     of the Trust as secured party, which security interest is prior to all
     other liens upon and security interests in such Motorcycle which now exist
     or may hereafter arise or be created (except, as to priority, for any lien
     for taxes, labor, materials or of any state law enforcement agency
     affecting a Motorcycle).

            (l)     CAPACITY OF PARTIES. All parties to any Contract had
     capacity to execute such Contract and all other documents related thereto
     and to grant the security interest purported to be granted thereby.

            (m)     GOOD TITLE. Each Contract was purchased by Seller for value
     and taken into possession prior to the Cutoff Date (or the applicable
     Subsequent Cutoff Date in the case of Subsequent Contracts) in the ordinary
     course of its business, without knowledge that the Contract was subject to
     a security interest. No Contract has been sold, assigned

                                      -9-
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     or pledged to any person other than Trust Depositor and the Trustee as the
     transferee of Trust Depositor, and prior to the transfer of the Contract to
     Trust Depositor, Seller had good and marketable title to each Contract free
     and clear of any encumbrance, equity, loan, pledge, charge, claim or
     security interest and was the sole owner thereof and had full right to
     transfer the Contract to Trust Depositor and to permit Trust Depositor to
     transfer the same to the Issuer and the Owner Trustee, and, as of the
     Closing Date (or the applicable Subsequent Transfer Date in the case of
     Subsequent Contracts), the Issuer and the Owner Trustee will have a first
     priority perfected security interest therein.

            (n)     NO DEFAULTS. As of the Initial Cutoff Date (or the
     applicable Subsequent Cutoff Date in the case of Subsequent Contracts), no
     default, breach, violation or event permitting acceleration existed with
     respect to any Contract and no event had occurred which, with notice and
     the expiration of any grace or cure period, would constitute such a
     default, breach, violation or event permitting acceleration under such
     Contract. Seller has not waived any such default, breach, violation or
     event permitting acceleration, and Seller has not granted any extension of
     payment terms on any Contract. As of the Initial Cutoff Date (or the
     applicable Subsequent Cutoff Date in the case of Subsequent Contracts), no
     Motorcycle had been repossessed.

            (o)     NO LIENS. As of the Closing Date (or the applicable
     Subsequent Transfer Date in the case of Subsequent Contracts) there are, to
     the best of Seller's knowledge, no liens or claims which have been filed
     for work, labor or materials affecting the Motorcycle securing any Contract
     which are or may be liens prior to, or equal with, the lien of such
     Contract.

            (p)     INSTALLMENTS. Each Contract has a fixed Contract Rate and
     provides for monthly payments of principal and interest which, if timely
     made, would fully amortize the loan on a simple-interest basis over its
     term.

            (q)     ENFORCEABILITY. Each Contract contains customary and
     enforceable provisions such as to render the rights and remedies of the
     holder thereof adequate for the realization against the collateral of the
     benefits of the security.

            (r)     ONE ORIGINAL. Each Contract is evidenced by only one
     original executed Contract, which original has been delivered to the Issuer
     and the Owner Trustee or its designee on or before the Closing Date (or the
     applicable Subsequent Transfer Date in the case of Subsequent Contracts).

            (s)     NO GOVERNMENT CONTRACTS. No Obligor is the United States
     government or an agency, authority, instrumentality or other political
     subdivision of the United States government.

            (t)     LOCKBOX BANK. The Lockbox Bank is the only institution
     holding any Lockbox Account for receipt of payments from Obligors, and all
     Obligors, and only such

                                      -10-
<Page>

     Obligors, have been instructed to make payments to the Lockbox Account, and
     no person claiming through or under Seller has any claim or interest in the
     Lockbox Account other than the Lockbox Bank; PROVIDED, HOWEVER, that other
     "Trusts" (as defined in the Lockbox Agreement) shall have an interest in
     certain other collections therein not related to the Contracts.

            (u)     OBLIGOR BANKRUPTCY. At the Cutoff Date (or the applicable
     Subsequent Cutoff Date in the case of Subsequent Contracts), no Obligor was
     subject to a bankruptcy proceeding within the one year preceding such
     Cutoff Date.

            (v)     CHATTEL PAPER. The Contracts constitute tangible chattel
     paper within the meaning of the UCC.

            (w)     NO IMPAIRMENT. Neither the Seller nor the Trust Depositor
     has done anything to convey any right to any Person that would result in
     such Person having a right to payments due under the Contract or otherwise
     to impair the rights of the Trust in any Contract or the proceeds thereof.

            (x)     CONTRACT NOT ASSUMABLE. No Contract is assumable by another
     Person in a manner which would release the Obligor thereof from such
     Obligor's obligations to the Trust Depositor with respect to such Contract.

     SECTION 3.03.  REPRESENTATIONS AND WARRANTIES REGARDING THE CONTRACTS IN
THE AGGREGATE. Seller represents and warrants, as of the execution and delivery
of this Agreement and as of the Closing Date, in the case of the Initial
Contracts, and, if applicable, as of the applicable Subsequent Transfer Date, in
the case of Subsequent Contracts, that:

            (a)     AMOUNTS.  The sum of the aggregate Principal Balances
     payable by Obligors under the Contracts as of the Initial Cutoff Date (or
     the applicable Subsequent Cutoff Date in the case of Subsequent Contracts),
     plus the Pre-Funded Amount as of such date, equals the sum of the principal
     balance of the Class A-1 Notes, the Class A-2 Notes and the Class B Notes
     on the Closing Date or the related Subsequent Transfer Date, as applicable.

            (b)     CHARACTERISTICS. The Initial Contracts have the following
     characteristics: (i) all the Contracts are secured by Motorcycles; (ii) no
     Initial Contract has a remaining maturity of more than 84 months; and (iii)
     the final scheduled payment on the Initial Contract with the latest
     maturity is due no later than August 2008. Approximately 72.03% of the
     Principal Balance of the Initial Contracts as of the Initial Cutoff Date is
     attributable to loans for purchases of new Motorcycles and approximately
     27.97% is attributable to loans for purchases of used Motorcycles. No
     Initial Contract was originated after the Initial Cutoff Date. No Initial
     Contract has a Contract Rate less than 6.50%. The first scheduled payment
     date of the Contracts (including any Subsequent Contracts) is due no later
     than February 2002.

                                      -11-
<Page>

            (c)     MARKING RECORDS. As of the Closing Date (or the applicable
     Subsequent Transfer Date in the case of Subsequent Contracts), Seller has
     caused the Computer Disk relating to the Contracts sold hereunder and
     concurrently reconveyed by Trust Depositor to the Trust and pledged by the
     Trust to the Indenture Trustee to be clearly and unambiguously marked to
     indicate that such Contracts constitute part of the Trust, are owned by the
     Trust and constitute security for the Notes.

            (d)     NO ADVERSE SELECTION. No selection procedures adverse to
     Noteholders have been employed in selecting the Contracts.

            (e)     TRUE SALE. The transaction contemplated by this Agreement
     constitutes a valid sale, transfer and assignment from Seller to Trust
     Depositor and from Trust Depositor to the Trust of all of Seller's right,
     title and interest in the Contract Assets as of the Closing Date and any
     Subsequent Transfer Date, as applicable.

            (f)     ALL FILINGS MADE. All filings (including, without
     limitation, UCC filings) required to be made by any Person and actions
     required to be taken or performed by any Person in any jurisdiction to give
     the Indenture Trustee a first priority perfected lien on, or ownership
     interest in, the Contracts and the proceeds thereof and the rest of the
     Trust Corpus have been made, taken or performed.

            (g)     DELTA LOANS. No more than 11.00% of the Principal Balance of
     the Contracts as of the end of the Funding Period is attributable to Delta
     Loans.

     SECTION 3.04.  REPRESENTATIONS AND WARRANTIES REGARDING THE CONTRACT
FILES. Seller represents and warrants as of the execution and delivery of this
Agreement and as of the Closing Date, in the case of the Initial Contracts, and
as of the applicable Subsequent Transfer Date, in the case of Subsequent
Contracts, that:

            (a)     POSSESSION. Immediately prior to the Closing Date or any
     Subsequent Transfer Date, the Servicer will have possession of each
     original Contract and the related complete Contract File, and there are and
     there will be no custodial agreements relating to the same in effect. Each
     of such documents which is required to be signed by the Obligor has been
     signed by the Obligor in the appropriate spaces. All blanks on any form
     have been properly filled in and each form has otherwise been correctly
     prepared. The complete Contract File for each Contract currently is in the
     possession of the Servicer.

            (b)     BULK TRANSFER LAWS. The transfer, assignment and conveyance
     of the Contracts and the Contract Files by Seller pursuant to this
     Agreement or any Subsequent Purchase Agreement and by Trust Depositor
     pursuant to the Sale and Servicing Agreement is not subject to the bulk
     transfer or any similar statutory provisions in effect in any applicable
     jurisdiction.

                                      -12-
<Page>

                                   ARTICLE IV

           PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

     SECTION 4.01.  CUSTODY OF CONTRACTS. The contents of each Contract File
shall be held in the custody of the Servicer for the benefit of the Trust as the
owner thereof in accordance with the Sale and Servicing Agreement.

     SECTION 4.02.  FILING. On or prior to the Closing Date and each
Subsequent Transfer Date, Seller shall cause the UCC financing statement(s)
referred to in Section 2.02(g) hereof and in Section 2.02(g) of the Sale and
Servicing Agreement to be filed and from time to time Seller shall take and
cause to be taken such actions and execute such documents as are necessary or
desirable or as Trust Depositor or the Trust may reasonably request to perfect
and protect the Trust Depositor's and the Trust's ownership interest in the
Contract Assets against all other persons, including, without limitation, the
filing of financing statements, amendments thereto and continuation statements,
the execution of transfer instruments and the making of notations on or taking
possession of all records or documents of title. The Seller authorizes the Trust
Depositor to file financing statements describing the Contract Assets as
collateral.

     SECTION 4.03.  NAME CHANGE OR RELOCATION. (a) During the term of this
Agreement, Seller shall not change its name, identity or structure or state of
incorporation without first giving at least 30 days' prior written notice to
Trust Depositor and to the Trustees.

            (b)     If any change in Seller's name, identity or structure or
     other action would make any financing or continuation statement or notice
     of ownership interest or lien filed under this Agreement seriously
     misleading within the meaning of applicable provisions of the UCC or any
     title statute, Seller, no later than five days after the effective date of
     such change, shall file such amendments as may be required to preserve and
     protect the Trust Depositor's and the Trust's interests in the Contract
     Assets and proceeds thereof. In addition, Seller shall not change its state
     of incorporation unless it has first taken such action as is advisable or
     necessary to preserve and protect the Trust Depositor's and the Trusts'
     interest in the Contract Assets. Promptly after taking any of the foregoing
     actions, Seller shall deliver to Trust Depositor and the Trustees an
     opinion of counsel stating that, in the opinion of such counsel, all
     financing statements or amendments necessary to preserve and protect the
     interests of the Trustees in the Contract Assets have been filed, and
     reciting the details of such filing.

     SECTION 4.04.  COSTS AND EXPENSES. Seller agrees to pay all reasonable
costs and disbursements in connection with the perfection and the maintenance of
perfection, as against all third parties, of (i) Trust Depositor's and the
Trustees' right, title and interest in and to the Contract Assets (including,
without limitation, the security interest in the Motorcycles related thereto)
and (ii) the security interests provided for in the Indenture.

     SECTION 4.05.  SALE TREATMENT. Each of Seller and Trust Depositor shall
treat the transfer of Contract Assets made hereunder (including in respect of
Subsequent Contracts) for all

                                      -13-
<Page>

purposes (including tax and financial accounting purposes) as a sale and
purchase on all of its relevant books, records, financial statements and other
applicable documents.

     SECTION 4.06.  SEPARATENESS FROM TRUST DEPOSITOR. The Seller agrees to
take or refrain from taking or engaging in with respect to the Trust Depositor
each of the actions or activities specified in the "substantive consolidation"
opinion of Winston & Strawn (or in any related certificate of Seller) delivered
on the Closing Date, upon which the conclusions expressed therein are based.

                                    ARTICLE V

                         REMEDIES UPON MISREPRESENTATION

     SECTION 5.01.  REPURCHASES OF CONTRACTS FOR BREACH OF REPRESENTATIONS
AND WARRANTIES. Seller hereby agrees, for the benefit of the Trustees and the
Trust Depositor, that it shall repurchase a Contract including any Subsequent
Contracts (together with all related Contract Assets), at its Repurchase Price,
not later than two Business Days prior to the first Determination Date after
Seller becomes aware, or should have become aware, or receives written notice
from Trust Depositor, either of the Trustees or the Servicer of any breach of a
representation or warranty of Seller set forth in Article III of this Agreement
that materially adversely affects Trust Depositor's or the Trust's interest in
such Contract (without regard to the benefits of the Reserve Fund) and which
breach has not been cured; PROVIDED, HOWEVER, that with respect to any Contract
incorrectly described on the List of Contracts with respect to unpaid Principal
Balance which Seller would otherwise be required to repurchase pursuant to this
Section 5.01 and Section 7.08 of the Sale and Servicing Agreement, Seller may,
in lieu of repurchasing such Contract, deposit in the Collection Account not
later than two Business Days prior to such Determination Date cash in an amount
sufficient to cure such deficiency or discrepancy; and PROVIDED FURTHER that
with respect to a breach of a representation or warranty relating to the
Contracts in the aggregate and not to any particular Contract, Seller may select
Contracts (without adverse selection) to repurchase such that had such Contracts
not been reconveyed by Trust Depositor and included as part of the Trust there
would have been no breach of such representation or warranty; PROVIDED FURTHER
that (a) the failure of a Contract File to be complete or of the original
certificate of title and evidence of recordation of such certificate to be
included in the Contract File as of 180 days after the Closing Date (or
Subsequent Transfer Date, in the case of Subsequent Contracts), or (b) the
failure to maintain perfection of the security interest in the Motorcycle
securing a Contract in accordance with the Sale and Servicing Agreement, shall
be deemed to be a breach materially and adversely affecting the Trust's interest
in the Contracts or in the related Contract Assets. Notwithstanding any other
provision of this Agreement, the obligation of Seller under this Section 5.01
and under Section 7.08 of the Sale and Servicing Agreement shall not terminate
upon a Service Transfer pursuant to Article VIII of the Sale and Servicing
Agreement.

     SECTION 5.02.  SELLER'S REPURCHASE OPTION. On written notice to the
Owner Trustee and the Indenture Trustee at least 20 days prior to a Distribution
Date, provided the Pool Balance is then less than 10% of the Aggregate Principal
Balance as of the Closing Date, Seller may (but is

                                      -14-
<Page>

not required to) repurchase from the Trust on that Distribution Date all
outstanding Contracts (and related Contract Assets) at a price equal to the
outstanding principal balance of the Notes on the previous Distribution Date
plus the Note Interest Distributable Amount for the current Distribution Date as
well as any unreimbursed Service Advances and the accrued and unpaid Monthly
Servicing Fee and Indenture Trustee Fee to the date of such repurchase, provided
the Seller is in receipt of a valuation letter by the Seller's financial advisor
that the Seller's repurchase is for fair and adequate consideration. Such price
will be deposited in the Collection Account not later than one Business Day
before such Distribution Date, against the Trustees' release of the Contracts
and Contract Files as described in Section 7.10 of the Sale and Servicing
Agreement.

                                   ARTICLE VI

                                   INDEMNITIES

     SECTION 6.01.  SELLER INDEMNIFICATION. Seller will defend and indemnify
Trust Depositor, the Trust, the Trustees, any agents of the Trustees and the
Noteholders against any and all costs, expenses, losses, damages, claims and
liabilities, joint or several, including reasonable fees and expenses of counsel
and expenses of litigation arising out of or resulting from (i) this Agreement
or the use, ownership or operation of any Motorcycle by Seller or the Servicer
or any Affiliate of either, (ii) any representation or warranty or covenant made
by Seller in this Agreement being untrue or incorrect (subject to the second
sentence of the preamble to Article III of this Agreement above), and (iii) any
untrue statement or alleged untrue statement of a material fact contained in the
Prospectus or in any amendment thereto or the omission or alleged omission to
state therein a material fact necessary to make the statements therein, in light
of the circumstances in which they were made, not misleading, in each case to
the extent, but only to the extent, that such untrue statement or alleged untrue
statement was made in conformity with information furnished to Trust Depositor
by Seller specifically for use therein. Notwithstanding any other provision of
this Agreement, the obligation of Seller under this Section 6.01 shall not
terminate upon a Service Transfer pursuant to Article VIII of the Sale and
Servicing Agreement and shall survive any termination of that agreement or this
Agreement.

     SECTION 6.02.  LIABILITIES TO OBLIGORS. No obligation or liability to any
Obligor under any of the Contracts is intended to be assumed by the Trustees,
the Trust or the Noteholders under or as a result of this Agreement and the
transactions contemplated hereby.

     SECTION 6.03.  TAX INDEMNIFICATION. Seller agrees to pay, and to
indemnify, defend and hold harmless the Trust Depositor, the Trust, the Trustees
or the Noteholders from, any taxes which may at any time be asserted with
respect to, and as of the date of, the transfer of the Contracts to Trust
Depositor hereunder and the concurrent reconveyance to the Trust and the further
pledge by the Trust to the Indenture Trustee, including, without limitation, any
sales, gross receipts, general corporation, personal property, privilege or
license taxes (but not including any federal, state or other taxes arising out
of the creation of the Trust and the issuance of the Notes) and costs, expenses
and reasonable counsel fees in defending against the same,

                                      -15-
<Page>

whether arising by reason of the acts to be performed by Seller under this
Agreement or the Servicer under the Sale and Servicing Agreement or imposed
against the Trust, a Noteholder or otherwise. Notwithstanding any other
provision of this Agreement, the obligation of Seller under this Section 6.03
shall not terminate upon a Service Transfer pursuant to Article VIII of the Sale
and Servicing Agreement and shall survive any termination of this Agreement.

     SECTION 6.04.  OPERATION OF INDEMNITIES. Indemnification under this
Article VI shall include, without limitation, reasonable fees and expenses of
counsel and expenses of litigation. If Seller has made any indemnity payments to
Trust Depositor or the Trustees pursuant to this Article VI and Trust Depositor
or the Trustees thereafter collects any of such amounts from others, Trust
Depositor or the Trustees will repay such amounts collected to Seller, except
that any payments received by Trust Depositor or the Trustees from an insurance
provider as a result of the events under which the Seller's indemnity payments
arose shall be repaid prior to any repayment of the Seller's indemnity payment.

                                   ARTICLE VII

                                  MISCELLANEOUS

     SECTION 7.01.  PROHIBITED TRANSACTIONS WITH RESPECT TO THE TRUST. Seller
shall not:

            (a)     Provide credit to any Noteholder for the purpose of enabling
     such Noteholder to purchase Notes;

            (b)     Purchase any Notes in an agency or trustee capacity; or

            (c)     Except in its capacity as Servicer as provided in the Sale
     and Servicing Agreement, lend any money to the Trust.

     SECTION 7.02.  MERGER OR CONSOLIDATION. (a) Except as otherwise provided
in this Section 7.02, Seller will keep in full force and effect its existence,
rights and franchises as a Nevada corporation, and will obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement and of any of the Contracts and to perform its
duties under this Agreement.

     (b)     Any person into which Seller may be merged or consolidated, or any
corporation or other entity resulting from such merger or consolidation to which
Seller is a party, or any person succeeding to the business of Seller, shall be
the successor to Seller hereunder, without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding.

     (c)     Upon the merger or consolidation of the Seller as described in this
Section 7.02, the Seller shall provide Standard & Poor's and Moody's notice of
such merger or consolidation within thirty (30) days after completion of the
same.

                                      -16-
<Page>

     SECTION 7.03.  TERMINATION. This Agreement shall terminate (after
distribution of any Note Distributable Amount due pursuant to Section 7.05 of
the Sale and Servicing Agreement) on the Distribution Date on which the
principal balance of the Class A-1 Notes, Class A-2 Notes and the Class B Notes
is reduced to zero; PROVIDED, that Seller's representations and warranties and
indemnities by Seller shall survive termination.

     SECTION 7.04.  ASSIGNMENT OR DELEGATION BY SELLER. Except as specifically
authorized hereunder, Seller may not convey and assign or delegate any of its
rights or obligations hereunder absent the prior written consent of Trust
Depositor and the Trustees, and any attempt to do so without such consent shall
be void.

     SECTION 7.05.  AMENDMENT. (a) This Agreement may be amended from time to
time by Seller and Trust Depositor, with notice to the Rating Agencies, but
without the consent of the Trustees or any of the Noteholders, to correct
manifest error, to cure any ambiguity, to correct or supplement any provisions
herein or therein which may be inconsistent with any other provisions herein or
therein, as the case may be, or to add any other provisions with respect to
matters or questions arising under this Agreement which shall not be
inconsistent with the provisions of this Agreement; PROVIDED, HOWEVER, that such
action shall not, as evidenced by an opinion of Counsel for Seller acceptable to
the Trustees, adversely affect the interests of any Noteholder.

     (b)     This Agreement may also be amended from time to time by Seller and
Trust Depositor, with the consent of the Modified Required Holders, for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Indenture Trustee for the benefit of Noteholders; PROVIDED, HOWEVER, that no
such amendment or waiver shall (a) reduce in any manner the amount of, or delay
the timing of, collections of payments on the Contracts or distributions which
are required to be made on any Note or (b) reduce the aforesaid percentage
required to consent to any such amendment, without the consent of the holders of
all Notes then outstanding.

     (c)     Promptly after the execution of any amendment or consent pursuant
to this Section 7.05, Trust Depositor shall furnish written notification of the
substance of such amendment and a copy of such amendment to each Trustee and
each Rating Agency.

     (d)     It shall not be necessary for the consent of Noteholders under this
Section 7.05 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Noteholders shall be subject to such reasonable
requirements as the Trustees may prescribe.

     (e)     Upon the execution of any amendment or consent pursuant to this
Section 7.05, this Agreement shall be modified in accordance therewith, and such
amendment or consent shall form a part of this Agreement for all purposes, and
every holder of Notes theretofore or thereafter issued hereunder shall be bound
thereby.

                                      -17-
<Page>

     SECTION 7.06.  NOTICES. All notices, demands, certificates, requests and
communications hereunder ("notices") shall be in writing and shall be effective
(a) upon receipt when sent through the U.S. mails, registered or certified mail,
return receipt requested, postage prepaid, with such receipt to be effective the
date of delivery indicated on the return receipt, or (b) one Business Day after
delivery to an overnight courier, or (c) on the date personally delivered to an
Authorized Officer of the party to which sent, or (d) on the date transmitted by
legible telecopier transmission with a confirmation of receipt, in all cases
addressed to the recipient at the address for such recipient set forth in the
Sale and Servicing Agreement.

Each party hereto may, by notice given in accordance herewith to each of the
other parties hereto, designate any further or different address to which
subsequent notices shall be sent.

     All communications and notices pursuant hereto to Noteholders shall be in
writing and delivered or mailed at the address shown in the Note Register.

     SECTION 7.07.  MERGER AND INTEGRATION. Except as specifically stated
otherwise herein, this Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof, and all prior understandings,
written or oral, are superseded by this Agreement. This Agreement may not be
modified, amended, waived, or supplemented except as provided herein.

     SECTION 7.08.  HEADINGS. The headings herein are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof.

     SECTION 7.09.  GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws of the State of
Illinois.

     SECTION 7.10.  NO BANKRUPTCY PETITION. The Seller covenants and agrees
that, prior to the date that is one year and one day after the payment in full
of all amounts owing in respect of all outstanding Securities, as well as any
other amounts distributable or payable from the Trust Estate, together with any
other amounts owing in respect of obligations of the Trust Depositor, it will
not institute against, or solicit or join in or cooperate with or encourage any
Person to institute against, the Trust Depositor or the Trust, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceedings under the laws of the United State or any State of the
United States. This Section 7.10 shall survive termination of this Agreement.

                                      -18-
<Page>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the date
first written above.

                                    HARLEY-DAVIDSON CUSTOMER FUNDING CORP.


                                    By:  /s/  Perry A. Glassgow
                                         --------------------------------
                                              Printed Name:  Perry A. Glassgow
                                              Title: Treasurer


                                    HARLEY-DAVIDSON CREDIT CORP.


                                    By:  /s/  Perry A. Glassgow
                                         --------------------------------
                                              Printed Name:  Perry A. Glassgow
                                              Title: Treasurer

                       Signature Page to Transfer and Sale
                                    Agreement

<Page>

                                                                       Exhibit A
                                                               Transfer and Sale
                                                                       Agreement

                               FORM OF ASSIGNMENT

     In accordance with the Transfer and Sale Agreement (the "AGREEMENT") dated
as of August 1, 2001 made by and between the undersigned, as seller thereunder
("SELLER"), and Harley-Davidson Customer Funding Corp., a Nevada corporation and
wholly-owned subsidiary of Seller ("TRUST DEPOSITOR"), as purchaser thereunder,
the undersigned does hereby sell, transfer, convey and assign, set over and
otherwise convey to Trust Depositor (i) all the right, title and interest of
Seller in and to the Initial Contracts listed on the initial List of Contracts
in effect on the Closing Date (including, without limitation, all security
interests and all rights to receive payments which are collected pursuant
thereto on or after the Initial Cutoff Date, including any liquidation proceeds
therefrom, but excluding any rights to receive payments which were collected
pursuant thereto prior to the Initial Cutoff Date), (ii) all rights of Seller
under any physical damage or other individual insurance policy (including a
"FORCED PLACED" policy, if any) relating to any such Contract, an Obligor or a
Motorcycle securing such Contract, (iii) all security interests in each such
Motorcycle, (iv) all documents contained in the related Contract Files, (v) all
rights of Seller in the Lockbox, Lockbox Account and related Lockbox Agreement
to the extent they relate to the Contracts, (vi) all rights (but not the
obligations) of the Seller under any motorcycle dealer agreements between the
dealers (i.e. the originators of the Contracts) and the Seller and (vii) all
proceeds and products of the foregoing

     This Assignment is made pursuant to and in reliance upon the representation
and warranties on the part of the undersigned contained in Article III of the
Agreement and no others.

     Capitalized terms used herein but not otherwise defined shall have the
meanings assigned to such terms in the Sale and Servicing Agreement dated as of
August 1, 2001 made by and among the undersigned, as servicer, the Trust
Depositor, Harley-Davidson Motorcycle Trust 2001-2, as issuer, and Bank One,
National Association, as indenture trustee.

                                   A-1
<Page>

     IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly
executed this ___ day of August, 2001.

                                        HARLEY-DAVIDSON CREDIT CORP.


                                        By:
                                           ------------------------------
                                             Printed Name:  Perry A. Glassgow
                                             Title: Treasurer

                                      A-2
<Page>

                                                                       Exhibit B
                                                               Transfer and Sale
                                                                       Agreement

                          FORM OF OFFICER'S CERTIFICATE
               (See Exhibit C to the Sale and Servicing Agreement)

                                 B-1
<Page>

                                                                      Exhibit C
                                                              Transfer and Sale
                                                                      Agreement


                      FORM OF SUBSEQUENT PURCHASE AGREEMENT


     SUBSEQUENT PURCHASE AGREEMENT (the "AGREEMENT"), dated as of ____________,
_______, by and among Harley-Davidson Customer Funding Corp., a Nevada
corporation (the "TRUST DEPOSITOR"), and Harley-Davidson Credit Corp., a Nevada
corporation (the "SELLER"), pursuant to the Transfer and Sale Agreement referred
to below.

                                   WITNESSETH:

     WHEREAS, the Trust Depositor and the Seller are parties to the Transfer and
Sale Agreement, dated as of August __, 2001 (the "TRANSFER AND SALE AGREEMENT");

     WHEREAS, pursuant to the Transfer and Sale Agreement, the Seller wishes to
sell the Subsequent Contracts to the Trust Depositor, and the Trust Depositor
wishes to purchase the same, for the purchase price set forth in SECTION 3
below; and

     WHEREAS, the Seller has timely delivered an Addition Notice related to such
conveyance as required in the Sale and Servicing Agreement dated as of August
__, 2001 among the Seller (in the capacity of Servicer thereunder), the Trust
Depositor and the Trustee as defined therein (the "SALE AND SERVICING
AGREEMENT").

     NOW, THEREFORE, the Trust Depositor and the Seller hereby agree as follows:

     SECTION 1.     Capitalized terms used herein shall have the meanings
ascribed to them in the Sale and Servicing Agreement unless otherwise defined
herein.

                    "SUBSEQUENT CUTOFF DATE" shall mean, with respect to the
            Subsequent Contracts transferred hereby, [_________].

                    "SUBSEQUENT CONTRACTS" shall mean, for purposes of this
            Agreement, the Subsequent Contracts listed in the Subsequent List of
            Contracts attached hereto as Exhibit A.

                    "SUBSEQUENT TRANSFER DATE" shall mean, with respect to the
            Subsequent Contracts transferred hereby, [__________].

     SECTION 2.     SUBSEQUENT LIST OF CONTRACTS. The Subsequent List of
Contracts attached hereto as Exhibit A is a supplement to the initial List of
Contracts attached as EXHIBIT H to the Sale and Servicing Agreement. The
Contracts listed in the Subsequent List of Contracts

                                      C-1
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constitute the Subsequent Contracts to be transferred pursuant to this Agreement
on the subsequent Transfer Date.

     SECTION 3.     TRANSFER OF SUBSEQUENT CONTRACTS. Subject to and upon the
terms and conditions set forth in Section 2.04(b) of the Transfer and Sale
Agreement and this Agreement, Seller hereby sells, transfers, assigns, sets over
and otherwise conveys to Trust Depositor, in consideration of Trust Depositor's
payment of $[_______] as the purchase price therefor, (i) all the right, title
and interest of Seller in and to the Subsequent Contracts listed on the related
Subsequent List of Contracts (including, without limitation, all security
interests and all rights to receive payments which are collected pursuant
thereto on or after the applicable Subsequent Cutoff Date, including any
liquidation proceeds therefrom, but excluding any rights to receive payments
which were collected pursuant thereto prior to such Subsequent Cutoff Date),
(ii) all rights of Seller under any physical damage or other individual
insurance policy (including a "FORCED PLACED" policy, if any) relating to any
such Contract, an Obligor or a Motorcycle securing such Contract, (iii) all
security interests in each such Motorcycle, (iv) all documents contained in the
related Contract Files, (v) all rights of Seller in the Lockbox, Lockbox Account
and related Lockbox Agreement to the extent they relate to the Contracts, (vi)
all rights (but not the obligations) of the Seller under any motorcycle dealer
agreements between the dealers (I.E. the originators of such Subsequent
Contracts) and the Seller and (vii) all proceeds and products of the foregoing.
It is the intention of the Seller and the Trust Depositor that the transfer
contemplated by this Agreement shall constitute a sale of the Subsequent
Contracts from the Seller to the Trust Depositor, conveying good title thereto
free and clear of any Liens, and that the Subsequent Contracts shall not be part
of the Seller's estate in the event of the filing of a bankruptcy petition by or
against Seller under any bankruptcy or similar law.

     SECTION 4.     REPRESENTATIONS AND WARRANTIES OF THE SELLER. (a) Seller
hereby represents and warrants to the Trust Depositor that the representations
and warranties of Seller in Section 3.01 of the Transfer and Sale Agreement are
true and correct as of the Subsequent Transfer Date.

     (b)  Seller hereby repeats and remakes with respect to the Subsequent
Contracts as of the Subsequent Transfer Date (i) the representations and
warranties of Seller in Sections 3.02, 3.03 and 3.04 of the Transfer and Sale
Agreement, except that, with respect to subsection (b) of Section 3.03, (A)
approximately _____% of the Principal Balance of the Contracts as of the
Subsequent Cutoff Date is attributable to loans for purchases of new Motorcycles
and approximately ___% is attributable to loans for purchases of used
Motorcycles, and (B) no Contract was originated after the Subsequent Cutoff
Date, as well as (ii) covenants to provide the certificate required by Section
2.02(h) (solely with respect to the Subsequent Contracts).

     (c)  Seller hereby represents and warrants that (a) the aggregate Principal
Balance of the Subsequent Contracts listed on the Subsequent List of Contracts
and conveyed to the Trust Depositor pursuant to this Agreement is $[    ] as of
the Subsequent Cutoff Date, and (b) the conditions set forth in Section 2.04(b)
of the Transfer and Sale Agreement have been satisfied as of the Subsequent
Transfer Date.

                                      C-2
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     SECTION 5.     RATIFICATION OF AGREEMENT. As supplemented by this
Agreement, the Transfer and Sale Agreement is in all respects ratified and
confirmed and, as so supplemented by this Agreement, shall be read, taken and
construed as one and the same instrument.

     SECTION 6.     COUNTERPARTS. This Agreement may be executed in two or
more counterparts (and by different parties in separate counterparts), each of
which shall be an original but all of which together shall constitute one and
the same instrument.

     SECTION 7.     GOVERNING LAW. This Agreement shall be construed in
accordance with the laws of the State of Illinois, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

                                      C-3
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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the date
first written above.


                                    HARLEY-DAVIDSON CUSTOMER FUNDING CORP.


                                    By:
                                        -----------------------------------
                                            Printed Name: Perry A. Glassgow
                                            Title: Treasurer


                                    HARLEY-DAVIDSON CREDIT CORP.

                                    By:
                                        -----------------------------------
                                            Printed Name: Perry A. Glassgow
                                            Title: Treasurer