Document:

EXHIBIT
10.3

 

 

ADMINISTRATION AGREEMENT

 

among

 

HARLEY-DAVIDSON MOTORCYCLE TRUST
[        ],

 

as Issuer,

 

HARLEY-DAVIDSON CREDIT CORP.,

 

as Administrator,

 

HARLEY-DAVIDSON CUSTOMER FUNDING
CORP.,

 

as Trust Depositor,

 

and

 

[       ],

 

as Indenture Trustee

 

Dated as of
[       ]

 

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DUTIES OF THE
  ADMINISTRATOR

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  RECORDS

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  COMPENSATION

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  ADDITIONAL
  INFORMATION TO BE FURNISHED TO THE ISSUER

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  INDEPENDENCE OF
  THE ADMINISTRATOR

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  NO JOINT VENTURE

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  OTHER ACTIVITIES
  OF ADMINISTRATOR

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  TERM OF
  AGREEMENT; RESIGNATION AND REMOVAL OF ADMINISTRATOR

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  ACTION UPON
  TERMINATION, RESIGNATION OR REMOVAL

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  NOTICES

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  AMENDMENTS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  SUCCESSORS AND
  ASSIGNS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  GOVERNING LAW

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
  HEADINGS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
  COUNTERPARTS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
  SEVERABILITY

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
  NOT APPLICABLE
  TO HARLEY-DAVIDSON CREDIT IN OTHER CAPACITIES

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
  LIMITATION OF
  LIABILITY OF OWNER TRUSTEE AND INDENTURE TRUSTEE

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 19.

  	
  THIRD-PARTY
  BENEFICIARY

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 20.

  	
  SURVIVABILITY

  	
   

  	
  13

  

 

 

This Administration Agreement, dated as of [          ],
among Harley-Davidson Motorcycle Trust [          ]
(the “Issuer”), Harley-Davidson Credit Corp.
(together with its successors and assigns “Harley-Davidson Credit”)
in its capacity as administrator, the “Administrator”),
Harley-Davidson Customer Funding Corp. (the “Trust Depositor”)
and [          ],
not in its individual capacity but solely as Indenture Trustee (together with
its successors and assigns, the “Indenture Trustee”).

 

W I T N E S S E T H:

 

WHEREAS, the Issuer is issuing Notes pursuant to the
Indenture, dated as of the date hereof (the “Indenture”),
between the Issuer and the Indenture Trustee (capitalized terms used herein
that are not otherwise defined shall have the meanings ascribed thereto in the
Indenture or the Sale and Servicing Agreement);

 

WHEREAS, the Issuer has entered into certain
agreements in connection with the issuance of the Notes including (i) a
Sale and Servicing Agreement, dated as of the date hereof (the “Sale and Servicing Agreement”), among the Issuer, the
Indenture Trustee, the Trust Depositor and Harley-Davidson Credit, as servicer
(in such capacity, the “Servicer”),
and (ii) the Indenture (collectively referred to hereinafter as the “Transaction Documents”);

 

WHEREAS, pursuant to the Transaction Documents, the
Issuer and the Owner Trustee are required to perform certain duties in
connection with (i) the Notes and the collateral therefor pledged pursuant
to the Indenture (the “Collateral”)
and (ii) the beneficial ownership interest in the Issuer (the registered
holder of such interest being referred to herein as the “Owner”);

 

WHEREAS, the Issuer and the Owner Trustee desire to
have the Administrator perform certain of the duties of the Issuer and the
Owner Trustee referred to in the preceding clause and to provide such
additional services consistent with the terms of this Agreement and the
Transaction Documents as the Issuer and the Owner Trustee may from time to time
request; and

 

WHEREAS, the Administrator has the capacity to provide
the services required hereby and is willing to perform such services for the
Issuer and the Owner Trustee on the terms set forth herein;

 

NOW, THEREAFTER, in consideration of the mutual
covenants contained herein, and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:

 

2

 

Section 1.              Duties of the Administrator.

 

(a)           Duties with respect to the Indenture.

 

(i)            The
Administrator agrees to perform all its duties as Administrator and the duties
of the Issuer and the Owner Trustee under the Transaction Documents.  In addition, the Administrator shall consult
with the Owner Trustee regarding the duties of the Issuer or the Owner Trustee
under the Indenture.  The Administrator
shall monitor the performance of the Issuer and shall advise the Owner Trustee
when action is necessary to comply with the respective duties of the Issuer and
the Owner Trustee under the Indenture. 
The Administrator shall prepare for execution by the Issuer or shall
cause the preparation by other appropriate persons of, all such documents,
reports, filings, instruments, certificates and opinions that it shall be the
duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to
the Indenture.  In furtherance of the
foregoing, the Administrator shall take all appropriate action that the Issuer
or the Owner Trustee is required to take pursuant to the Indenture including,
without limitation, such of the foregoing as are required with respect to the
following matters under the Indenture (references are to Sections of the
Indenture):

 

(A)          the duty to cause the Note Register to be kept and to give
the Indenture Trustee notice of any appointment of a new Note Registrar and the
location, or change in location, of the Note Register (Section 2.04);

 

(B)           the notification of Noteholders of the final principal
payment on their Notes (Section 2.07(b));

 

(C)           the fixing or causing to be fixed of any special record
date and the notification of the Indenture Trustee and Noteholders with respect
to special payment dates, if any (Section 2.07(c));

 

(D)          the preparation of or obtaining of the documents and
instruments required for execution and authentication of the Notes and delivery
of the same to the Indenture Trustee (Section 2.02);

 

(E)           the preparation, obtaining or filing of the instruments,
opinions and certificates and other documents required for the release of
Collateral (Section 2.12);

 

(F)           the maintenance of an office in the City of
[          ], for
registration of transfer or exchange of Notes (Section 3.02);

 

(G)           the duty to cause newly appointed Paying Agents, if any,
to deliver to the Indenture Trustee the instrument specified in the Indenture
regarding funds held in trust (Section 3.03);

 

3

 

(H)          the direction to the Indenture Trustee to deposit monies
with Paying Agents, if any, other than the Indenture Trustee (Section 3.03);

 

(I)            the obtaining and preservation of the Issuer’s
qualification to do business in each jurisdiction in which such qualification
is or shall be necessary to protect the validity and enforceability of the
Indenture, the Notes, the Collateral and each other instrument and agreement
included in the Collateral (Section 3.04);

 

(J)            the preparation of all supplements and amendments to the
Indenture and all financing statements, continuation statements, instruments of
further assurance and other instruments and the taking of such other action as
is necessary or advisable to protect the Collateral other than as prepared by
the Servicer (Section 3.05);

 

(K)          the delivery of the Opinion of Counsel on the Closing Date
and certain other statements as to compliance with the Indenture (Sections 3.06
and 3.09);

 

(L)           the identification to the Indenture Trustee in an Officer’s
Certificate of a Person with whom the Issuer has contracted to perform its
duties under the Indenture (Section 3.07(b));

 

(M)         the notification of the Indenture Trustee and each Rating
Agency of an Event of Termination under the Sale and Servicing Agreement;

 

(N)          the duty to cause the Servicer to comply with Article Five
and Article Nine of the Sale and Servicing Agreement (Section 3.14);

 

(O)          the preparation and obtaining of documents and instruments
required for the release of the Issuer from its obligations under the Indenture
(Section 3.10(b) and Section 3.11(b));

 

(P)           the delivery of written notice to the Indenture Trustee
and each Rating Agency of each Event of Default under the Indenture and each
Event of Termination by the Servicer under the Sale and Servicing Agreement (Section 3.18);

 

(Q)          the monitoring of the Issuer’s obligations as to the
satisfaction and discharge of the Indenture and the preparation of an Officer’s
Certificate and the obtaining of the Opinion of Counsel and the Independent
Certificate relating thereto (Section 4.01);

 

(R)           the compliance with any written directive of the Indenture
Trustee with respect to the sale of the Collateral in a commercially reasonable
manner if an Event of Default shall have occurred and be continuing (Section 5.04);

 

4

 

(S)           the preparation and delivery of notice to Noteholders and
the Swap Counterparty of the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee (Section 6.08);

 

(T)           the preparation of any written instruments required to
confirm more fully the authority of any co-trustee or separate trustee and any
written instruments necessary in connection with the resignation or removal of
the Indenture Trustee or any co-trustee or separate trustee (Sections 6.08 and
6.10);

 

(U)          the furnishing of the Indenture Trustee with the names and
addresses of Noteholders during any period when the Indenture Trustee is not
the Note Registrar (Section 7.01);

 

(V)           the opening of one or more accounts in the Indenture
Trustee’s name, the preparation and delivery of Issuer Orders, Officer’s
Certificates and Opinions of Counsel and all other actions necessary with
respect to investment and reinvestment of funds in the Trust Accounts (Sections
8.02 and 8.03);

 

(W)         the preparation of an Issuer Request and Officer’s
Certificate and the obtaining of an Opinion of Counsel and Independent
Certificates, if necessary, for the release of the Collateral (Sections 8.04
and 8.05);

 

(X)          the preparation of Issuer Orders and the obtaining of
Opinions of Counsel with respect to the execution of supplemental indentures
and the mailing to the Noteholders and the Swap Counterparty of notices with
respect to such supplemental indentures (Sections 9.01, 9.02 and 9.03);

 

(Y)           the execution and delivery of new Notes conforming to any
supplemental indenture (Section 9.06);

 

(Z)           the duty to notify Noteholders and the Swap Counterparty
of redemption of the Notes or to cause the Indenture Trustee to provide such
notification (Section 10.02);

 

(AA)       the preparation and delivery of all Officer’s Certificates,
Opinions of Counsel and Independent Certificates with respect to any requests
by the Issuer to the Indenture Trustee to take any action under the Indenture (Section 11.01(a));

 

(BB)        the preparation and delivery of Officer’s Certificates and
the obtaining of Independent Certificates, if necessary, for the release of
property from the lien of the Indenture (Section 11.01(b));

 

5

 

(CC)        the notification of the Rating Agencies, upon the failure of
the Issuer, the Owner Trustee or the Indenture Trustee to provide notification;

 

(DD)       the preparation and delivery to Noteholders and the Indenture
Trustee of any agreements with respect to alternate payment and notice
provisions (Section 11.06);

 

(EE)         the recording of the Indenture, if applicable (Section 11.14);
and

 

(FF)         the appointment of a successor Indenture Trustee.

 

(ii)           The
Administrator will:

 

(A)          except as otherwise expressly provided in the Indenture,
pay the Indenture Trustee’s fees and reimburse the Indenture Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or
made by the Indenture Trustee in accordance with any provision of the Indenture
(including the reasonable compensation, expenses and disbursements of its
agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith;

 

(B)           indemnify the Indenture Trustee and its agents for, and
hold them harmless against, any loss, liability or expense incurred without
negligence or bad faith on their part, arising out of or in connection with the
acceptance or administration of the transactions contemplated by the Indenture,
including the reasonable costs and expenses of defending themselves against any
claim or liability in connection with the exercise or performance of any of
their powers or duties under the Indenture; and

 

(C)           indemnify the Owner Trustee and its agents for, and hold
them harmless against, any loss, liability or expense incurred without
negligence or bad faith on their part, arising out of or in connection with the
acceptance or administration of the transactions contemplated by the Trust
Agreement, including the reasonable costs and expenses of defending themselves
against any claim or liability in connection with the exercise or performance
of any of their powers or duties under the Trust Agreement.

 

(b)           Additional Duties.

 

(i)            In
addition to the duties set forth in Section 1(a)(i), the Administrator
shall perform such calculations and shall prepare or shall cause the
preparation by other appropriate persons of, and shall execute on behalf of the
Issuer or the Owner Trustee, all such documents, reports, filings, instruments,
certificates and opinions that the Issuer or the Owner Trustee are required to
prepare, file or deliver pursuant to the Transaction Documents or under Section 5.03
of the Trust Agreement, and at the request of the Owner Trustee shall take all
appropriate action that the Issuer or the Owner Trustee are

 

6

 

required
to take pursuant to the Transaction Documents. 
In furtherance thereof, the Owner Trustee shall, on behalf of the
Issuer, execute and deliver to the Administrator and to each successor
Administrator appointed pursuant to the terms hereof, one or more powers of attorney
substantially in the form of Exhibit A
hereto, appointing the Administrator the attorney-in-fact of the Issuer for the
purpose of executing on behalf of the Owner Trustee and the Issuer all such
documents, reports, filings, instruments, certificates and opinions.  Subject to Section 5, and in accordance
with the directions of the Issuer, the Administrator shall administer, perform
or supervise the performance of such other activities in connection with the
Collateral (including the Transaction Documents) as are not covered by any of
the foregoing provisions and as are expressly requested by the Issuer and are
reasonably within the capability of the Administrator.

 

(ii)           Notwithstanding
anything in this Agreement or the Transaction Documents to the contrary, the
Administrator shall be responsible for promptly notifying the Owner Trustee in
the event that any withholding tax is imposed on the Trust’s payments (or
allocations of income) to the Owner as contemplated in Section 5.01(c) of
the Trust Agreement.  Any such notice
shall specify the amount of any withholding tax required to be withheld by the
Owner Trustee pursuant to such provision.

 

(iii)          Notwithstanding
anything in this Agreement or the Transaction Documents to the contrary, the
Administrator shall be responsible for performance of the duties of the Owner
Trustee set forth in Section 5.03(a), (b), (c) and (d), the
penultimate sentence of Section 5.03 and Section 5.04(a) of the
Trust Agreement with respect to, among other things, accounting and reports to
the Owner; provided, however, that the Owner
Trustee shall retain responsibility for the distribution of information forms
necessary to enable the Owner to prepare its federal and state income tax
returns.

 

(iv)          The
Administrator shall satisfy its obligations with respect to clauses (ii) and
(iii) above by retaining, at the expense of the Trust payable by the
Administrator, a firm of independent public accountants (the “Accountants”) acceptable to the Owner Trustee, which shall
perform the obligations of the Administrator thereunder.

 

(v)           The
Administrator shall perform the duties of the Administrator specified in Section 10.02
of the Trust Agreement required to be performed in connection with the
resignation or removal of the Owner Trustee, and any other duties expressly
required to be performed by the Administrator under the Trust Agreement.

 

(vi)          In
carrying out the foregoing duties or any of its other obligations under this
Agreement, the Administrator may enter into transactions or otherwise deal with
any of its Affiliates; provided, however,
that the terms of any such transactions or dealings shall be in accordance with
any directions received from the Issuer and shall be, in the

 

7

 

Administrator’s
opinion, no less favorable to the Issuer than would be available from
unaffiliated parties.

 

(c)           Non-Ministerial Matters.

 

(i)            With
respect to matters that in the reasonable judgment of the Administrator are
non-ministerial, the Administrator shall not take any action unless within a
reasonable time before the taking of such action, the Administrator shall have
notified the Owner Trustee of the proposed action and the Owner Trustee shall
not have withheld consent or provided an alternative direction.  For the purpose of the preceding sentence, “non-ministerial matters” shall include, without limitation:

 

(A)          the amendment of or any supplement to the Indenture;

 

(B)           the initiation of any claim or lawsuit by the Issuer and
the compromise of any action, claim or lawsuit brought by or against the Issuer
(other than in connection with the collection of the Contracts);

 

(C)           the amendment, change or modification of any other
Transaction Documents;

 

(D)          the appointment of successor Note Registrars, successor
Paying Agents and successor Indenture Trustees pursuant to the Indenture or the
appointment of successor Administrators or a successor Servicer, or the consent
to the assignment by the Note Registrar, Paying Agent or Indenture Trustee of
its obligations under the Indenture;

 

(E)           the removal of the Indenture Trustee;

 

(F)           the provision of copies of any amendment or supplement to
the Interest Rate Swap Agreement to the Rating Agencies; and

 

(G)           the notification to the Swap Counterparty of any proposed
amendment or supplement to any of the Transaction Documents.

 

(ii)           Notwithstanding
anything to the contrary in this Agreement, the Administrator shall not be
obligated to, and shall not, (A) make any payments to the Noteholders or
the Swap Counterparty under the Transaction Documents, (B) sell the
Collateral pursuant to clause (iv) of Section 5.04 of the Indenture, (C) take
any other action that the Issuer directs the Administrator not to take on its
behalf or (D) take any other action which may be construed as having the
effect of varying the investment of the Holders.

 

Section 2.              Records.   The Administrator shall maintain appropriate
books of account and records relating to services performed hereunder, which
books of account and records shall be

 

8

 

accessible for inspection by the
Issuer and the Owner Trustee at any time during normal business hours.

 

Section 3.              Compensation.  As compensation for the performance of the
Administrator’s obligations under this Agreement and as reimbursement for its
expenses related thereto, the Administrator shall be entitled to a monthly fee
which shall be solely an obligation of the Trust Depositor and shall be in an
amount as shall be agreeable to the Trust Depositor and the Administrator.

 

Section 4.              Additional Information to be
Furnished to the Issuer. 
The Administrator shall furnish to the Issuer from time to time such
additional information regarding the Collateral as the Issuer shall reasonably
request.

 

Section 5.              Independence of the Administrator.  For all purposes of this Agreement, the
Administrator shall be an independent contractor and shall not be subject to
the supervision of the Issuer or the Owner Trustee with respect to the manner
in which it accomplishes the performance of its obligations hereunder.  Unless expressly authorized by the Issuer,
the Administrator shall have no authority to act for or represent the Issuer or
the Owner Trustee in any way and shall not otherwise be deemed an agent of the
Issuer or the Owner Trustee.

 

Section 6.              No Joint Venture.  Nothing contained in this Agreement (i) shall
constitute the Administrator and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) shall be construed
to impose any liability as such on any of them or (iii) shall be deemed to
confer on any of them any express, implied or apparent authority to incur any
obligation or liability on behalf of the others.

 

Section 7.              Other Activities of Administrator.  Nothing herein shall prevent the
Administrator or its Affiliates from engaging in other business or, in its sole
discretion, from acting in a similar capacity as an administrator for any other
Person or entity even though such person or entity may engage in business
activities similar to those of the Issuer, the Owner Trustee or the Indenture
Trustee.

 

Section 8.              Term of Agreement; Resignation and
Removal of Administrator. 
This Agreement shall continue in force until the termination of the
Issuer, upon which event this Agreement shall automatically terminate.

 

(a)           Subject
to Section 8(d) and Section 8(e), the Administrator may resign
its duties hereunder by providing the Issuer with at least 60 days’ prior
written notice.

 

9

 

(b)           Subject
to Section 8(d) and Section 8(e), the Issuer may remove the
Administrator without cause by providing the Administrator with at least 60
days’ prior written notice.

 

(c)           Subject
to Section 8(d) and Section 8(e), at the sole option of the
Issuer, the Administrator may be removed immediately upon written notice of
termination from the Issuer to the Administrator if any of the following events
shall occur:

 

(i)            the
Administrator shall default in the performance of any of its duties under this
Agreement and, after notice of such default, shall not cure such default within
ten days (or, if such default cannot be cured in such time, shall not give
within ten days such assurance of cure as shall be reasonably satisfactory to
the Issuer);

 

(ii)           a court
having jurisdiction in the premises shall enter a decree or order for relief,
and such decree or order shall not have been vacated within 60 days, in respect
of the Administrator in any involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect or appoint a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for the Administrator or any substantial part of its property or order
the winding-up or liquidation of its affairs; or

 

(iii)          the
Administrator shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, shall consent to
the entry of an order for relief in an involuntary case under any such law, or
shall consent to the appointment of a receiver, liquidator, assignee, trustee,
custodian, sequestrator or similar official for the Administrator or any
substantial part of its property, shall consent to the taking of possession by
any such official of any substantial part of its property, shall make any
general assignment for the benefit of creditors or shall fail generally to pay
its debts as they become due.

 

The Administrator agrees that if any of the events
specified in clauses (ii) or (iii) above shall occur, it shall give
written notice thereof to the Issuer and the Indenture Trustee within seven
days after the occurrence of such event.

 

(d)           No
resignation or removal of the Administrator pursuant to this Section shall
be effective until (i) a successor Administrator shall have been appointed
by the Issuer and (ii) such successor Administrator shall have agreed in
writing to be bound by the terms of this Agreement in the same manner as the
Administrator is bound hereunder.

 

(e)           The
appointment of any successor Administrator shall be effective only after the
satisfaction of the Rating Agency Condition with respect to the proposed
appointment.

 

(f)            Subject
to Section 8(d) and 8(e), the Administrator acknowledges that upon
the appointment of a Successor Servicer pursuant to the Sale and Servicing
Agreement, the

 

10

 

Administrator shall immediately resign and such Successor
Servicer shall automatically become the Administrator under this Agreement.

 

Section 9.              Action upon Termination,
Resignation or Removal.  Promptly upon the
effective date of termination of this Agreement pursuant to Section 8 or
the resignation or removal of the Administrator pursuant to Section 8(a), (b) or
(c) respectively, the Administrator shall be entitled to be paid all fees
and reimbursable expenses accruing to it to the date of such termination,
resignation or removal.  The
Administrator shall forthwith upon such termination pursuant to Section 8
deliver to the Issuer all property and documents of or relating to the
Collateral then in the custody of the Administrator.  In the event of the resignation or removal of
the Administrator pursuant to Section (a), (b) or (c), respectively,
the Administrator shall cooperate with the Issuer and take all reasonable steps
requested to assist the Issuer in making an orderly transfer of the duties of
the Administrator.

 

Section 10.            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.

 

Section 11.            Amendments.  This Agreement may be amended from time to
time by a written amendment duly executed and delivered by the parties hereto,
with the written consent of the Owner Trustee but without the consent of the
Noteholders or the Swap Counterparty (but with prior written notice to the Swap
Counterparty), 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 Noteholders; provided that such amendment will
not, in the Opinion of Counsel satisfactory to the Indenture Trustee,
materially and adversely affect the interest of any Noteholder or the Swap
Counterparty.  This Agreement may also be
amended by the parties hereto with the written consent of the Owner
Trustee,  the Required Holders and the
Swap Counterparty 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 Noteholders and/or the Swap Counterparty;
provided, however, that no such
amendment may (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on the Contracts or
distributions that are required to be made for the benefit of the

 

11

 

Noteholders or (ii) reduce the
aforesaid percentage of the holders of Notes which are required to consent to
any such amendment, without the consent of the holders of all outstanding
Notes; provided, further, that such amendment
shall not materially and adversely affect the rights and obligations of the
Swap Counterparty or the Issuer under the Interest Rate Swap Agreement unless
the Swap Counterparty shall have consented in writing to such amendment (such
consent not to be unreasonably withheld or delayed).  Notwithstanding the foregoing, the
Administrator may not amend this Agreement without the permission of the Trust Depositor,
which permission shall not be unreasonably withheld.

 

Section 12.            Successors and Assigns.  This Agreement may not be assigned
by the Administrator unless such assignment is previously consented to in
writing by the Issuer, the Indenture Trustee and the Owner Trustee and subject
to the satisfaction of the Rating Agency Condition in respect thereof.  An assignment with such consent and
satisfaction, if accepted by the assignee, shall bind the assignee hereunder in
the same manner as the Administrator is bound hereunder.  Notwithstanding the foregoing, this Agreement
may be assigned by the Administrator without the consent of the Issuer or the
Owner Trustee to a corporation or other organization that is a successor (by
merger, consolidation or purchase of assets) to the Administrator; provided
that such successor organization executes and delivers to the Issuer, the Owner
Trustee and the Indenture Trustee an agreement, in form and substance
reasonably satisfactory to the Owner Trustee and the Indenture Trustee, in
which such corporation or other organization agrees to be bound hereunder by
the terms of said assignment in the same manner as the Administrator is bound
hereunder.  Subject to the foregoing,
this Agreement shall bind any successors or assigns of the parties hereto.

 

Section 13.            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.

 

Section 14.            Headings.  The section and subsection headings hereof
have been inserted for convenience of reference only and shall not be construed
to affect the meaning, construction or effect of this Agreement.

 

Section 15.            Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same agreement.

 

Section 16.            Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and any such prohibition or

 

12

 

unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

Section 17.            Not Applicable to Harley-Davidson
Credit in Other Capacities. 
Nothing in this Agreement shall affect any obligation Harley-Davidson
Credit may have in any other capacity.

 

Section 18.            Limitation of Liability of Owner
Trustee and Indenture Trustee.

 

(a)           Notwithstanding
anything contained herein to the contrary, this instrument has been
countersigned by [          ] not in its individual capacity but solely in its
capacity as Owner Trustee of the Issuer and in no event shall [          ] in its individual capacity or any beneficial owner
of the Issuer have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder, as to all
of which recourse shall be had solely to the assets of the Issuer.  For all purposes of this Agreement, in the
performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Articles Six, Seven and Eight of the Trust Agreement.

 

(b)           Notwithstanding
anything contained herein to the contrary, this Agreement has been
countersigned by [          ] not in its individual capacity but solely as
Indenture Trustee and in no event shall [          ] have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer.

 

Section 19.            Third-party Beneficiary.  The Owner Trustee is a third-party
beneficiary to this Agreement and is entitled to the rights and benefits
hereunder and may enforce the provisions hereof as if it were a party
hereto.  The Swap Counterparty shall be a
third-party beneficiary to the provisions of this Agreement to the extent of
any rights specified in this Agreement and may enforce the provisions hereof to
such extent as if it were a party hereto.

 

Section 20.            Survivability.  The obligations of the Administrator
described in Section 1(a)(ii) hereof shall survive termination of
this Agreement.

 

Section 21.            Limitation of Rights.  All of the rights of the Swap Counterparty
in, to and under this Agreement, if any, shall terminate upon the termination
of the Interest Rate Swap Agreement in accordance with the terms thereof and
the payment in full of all amounts owing to the Swap Counterparty under the
Interest Rate Swap Agreement.

 

[signature page follows]

 

13

 

                                IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first above written.

 

	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE TRUST

  
	
   

  	
  [          ]

  
	
   

  	
   

  
	
   

  	
  By: [          ],
  not in its

  
	
   

  	
     individual capacity but solely as
  Owner

  
	
   

  	
     Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON CUSTOMER FUNDING CORP., as Trust
  Depositor

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  [      ], not in

  
	
   

  	
  its individual capacity but solely as Indenture

  
	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON CREDIT CORP., as Administrator

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  
	
   

  	
  Title:

  
					

 

Signature Page to
Administration Agreement

 

 

LIMITED
POWER OF ATTORNEY

 

	
  State of Illinois

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  )

  	
  SS.

  	
   

  
	
   

  	
   

  	
   

  
	
  County of Cook

  	
  )

  	
   

  
				

 

KNOW ALL PERSONS BY THESE PRESENTS, that [          ],
a [          ]
(the “Owner Trustee”), whose principal
executive office is located at [          ]
Attention:  [          ], by
and through its duly elected and authorized officer,
                                                ,  a
                                      ,  on behalf of itself and of Harley-Davidson
Motorcycle Trust [          ]
(the “Trust”) as Issuer under the
Administration Agreement, dated as of [          ]
(the “Administration Agreement”), among the
Trust, Harley-Davidson Customer Funding Corp., [          ], as
Indenture Trustee, and Harley-Davidson Credit Corp., as Administrator, does
hereby nominate, constitute and appoint Harley-Davidson Credit Corp., a Nevada
corporation, each of its officers from time to time and each of its employees
authorized by it from time to time to act hereunder, jointly and each of them
severally, together or acting alone, its true and lawful attorney-in-fact, for
the Owner Trustee and the Issuer in their name, place and stead, in the sole
discretion of such attorney-in-fact, to perform such calculations and prepare
or cause the preparation by other appropriate persons of, and to execute on
behalf of the Issuer or the Owner Trustee, all such documents, reports,
filings, instruments, certificates and opinions that the Issuer or the Owner
Trustee is required to prepare, file or deliver pursuant to the Administration
Agreement, and to take any and all other action, as such attorney-in-fact may
deem necessary or desirable in accordance with the directions of the Owner
Trustee and in connection with its duties as Administrator or successor
Administrator under the Administration Agreement.  Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in the
Administration Agreement.

 

The Owner Trustee hereby ratifies and confirms the
execution, delivery and performance (whether before or after the date hereof)
of the above-mentioned documents, reports, filings, instruments, certificates
and opinions, by the attorney-in-fact and all that the attorney-in-fact shall
lawfully do or cause to be done by virtue hereof.

 

The Owner Trustee hereby agrees that no person or
other entity dealing with the attorney-in-fact shall be bound to inquire into
such attorney-in-fact’s power and authority 

 

 

hereunder and any such
person or entity shall be fully protected in relying on such power of
authority.

 

This Limited Power of Attorney may not be assigned
without the prior written consent of the Owner Trustee.  It is effective immediately and will continue
until it is revoked.

 

This Limited Power of Attorney shall be governed and
construed in accordance with the laws of the State of Illinois without
reference to principles of conflicts of law.

 

Executed as of this
       day of [          ].

 

 

	
   

  	
  [          ], not
  in its individual

  
	
   

  	
   

  
	
   

  	
  capacity but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
    Printed Name:

  	
   

  
	
   

  	
    Title:

  	
   

  
					

 

 

CERTIFICATE
OF ACKNOWLEDGMENT OF

 

NOTARY
PUBLIC

 

	
  State of Delaware

  	
  )

  
	
   

  	
   

  
	
   

  	
  )

  	
  SS.

  
	
   

  	
   

  
	
  County of New Castle

  	
  )

  

 

	
   

  	
     On [          ]
  before me,

  
	
   

  	
  [Insert name and title of notary]

  
	
   

  	
     personally appeared
                                                  .

  	
   

  

 

 ̈            personally
known to me, or

 

 ̈            proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are

 

subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ties), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which person(s) acted, executed the instrument.

 

	
   

  	
  WITNESS my hand and official seal.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]Exhibit 10.2

 

ADAMS COUNTY NATIONAL BANK OF GETTYSBURG, PA

AMENDED AND RESTATED SALARY CONTINUATION AGREEMENT

 

THIS
AGREEMENT is made this 30th day of December, 2008, by and between Adams
County National Bank of Gettysburg, Pennsylvania (the “Company”) and                         
(the “Executive”).

 

INTRODUCTION

 

To
encourage the Executive to remain an employee of the Company, the Company is
willing to provide salary continuation benefits to the Executive. The Company
will pay the benefits from its general assets.

 

The
Company and the Executive executed a Salary Continuation Agreement on May 14,
1996, as amended on March 27, 1998.

 

The
Company and the Executive wish to amend the Salary Continuation Agreement to
comply with Section 409A of the Code.

 

AGREEMENT

 

The
Executive and the Company, intending to be legally bound, agree as follows:

 

Article 1

 

Definitions

 

1.1           Definitions.  Whenever used in this Agreement, the following
words and phrases shall have the meanings specified:

 

1.1.1        “Change of Control”
means the transfer of 51% or more of the Company’s or ACNB Corporation’s
outstanding voting common stock followed within twelve (12) months by
replacement of fifty percent (50%) or more of the members of the Company’s
Board of Directors (for reasons other than death or disability).

 

1

 

1.1.2        “Code” means the
Internal Revenue Code of 1986, as amended. References to a Code section shall
be deemed to be to that section as it now exists and to any successor provision.

 

1.1.3        “Company” means
Adams County National Bank of Gettysburg, Pennsylvania, and any successor
thereto.

 

1.1.4        “Normal Retirement Date” means the Executive attaining age     , or his/her
actual retirement date if after age     .

 

1.1.4a      “Specified Employee”
means an employee who at the time of Termination of Employment is a key
employee of the Company, if any stock of the Company or ACNB Corporation is
publicly traded on an established securities market or otherwise. For purposes
of this Agreement, an employee is a key employee if the employee meets the
requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied
in accordance with the regulations thereunder and disregarding Section 416(i)(5))
at any time during the twelve (12) month period ending on December 31 (the
“Identification Period”). If the employee is a key employee during an
Identification Period, the employee is treated as a key employee for purposes
of this Agreement during the twelve (12) month period that begins on the first
day of April following the close of the Identification Period.

 

1.1.5        “Termination of Employment” means termination of the Executive’s employment with the Company for
reasons other than death. Whether a termination of employment has occurred is
determined based on whether the facts and circumstances indicate that the
Company and the Executive reasonably anticipated that no further services would
be performed after a certain date or that the level of bona fide services the
Executive would perform after such date (whether as an employee or as an
independent contractor) would permanently decrease to no more than twenty
percent (20%) of the average level of bona fide services performed (whether as
an employee or an independent contractor) over the immediately preceding
thirty-six (36) month period (or the full period of services to the Company if
the Executive has been providing services to the Company less than thirty­six
(36) months).

 

2

 

1.1.6        “Plan Year” means
each twelve (12) month period from the effective date of this Agreement.

 

Article 2

 

Retirement Benefits

 

2.1           Normal Retirement Benefit.  If the Executive terminates
employment on or after the Normal Retirement Date for reasons other than death,
the Company shall pay to the Executive the benefit described in this Section 2.1.

 

2.1.1        Amount of Benefit.  The benefit under this Section 2.1 is $            .

 

2.1.2        Payment of Benefit.  The Company shall pay the benefit to the
Executive on the first day of each month commencing with the month following
the Executive’s Normal Retirement Date and continuing for 179 additional
months.

 

2.2           Early Retirement Benefit.  If the Executive terminates
employment before the Normal Retirement Date, and for reasons other than death or
following a Change of Control, the Company shall pay to the Executive the
benefit described in this Section 2.2.

 

2.2.1        Amount of Benefit.  The benefit under this Section 2.2 is the
benefit determined under Schedule A based on the date of the Executive’s
Termination of Employment.

 

2.2.2        Payment of Benefit.  The Company shall pay the annual benefit to
the Executive in twelve (12) equal monthly installments payable on the first
day of each month commencing with the month following Termination of Employment
and continuing for 179 additional months.

 

2.3           Change of Control Benefit.  Upon a Change in Control
followed by a Termination of Employment, the Company shall pay to the Executive
the benefit described in this Section 2.3 in lieu of any other benefit under
this Agreement.

 

2.3.1        Amount of Benefit.  The benefit under this Section 2.3 is the
Normal Retirement Benefit described in Section 2.1.1.

 

3

 

2.3.2        Payment of Benefit.  The Company shall pay the annual benefit to
the Executive in twelve (12) equal monthly installments payable on the first
day of each month commencing with the month following Termination of Employment
and continuing for 179 additional months.

 

2.4           Restriction on Timing of Distributions.  Notwithstanding
any provision of this Agreement to the contrary, if the Executive is considered
a Specified Employee, the provisions of this Section 2.4 shall govern all
distributions hereunder. If benefit distributions which would otherwise be made
to the Executive due to a Termination of Employment are limited because the
Executive is a Specified Employee, then such distributions shall not be made
during the first six (6) months following Termination of Employment.
Rather, any distribution which would otherwise be paid to the Executive during
such period shall be accumulated and paid to the Executive in a lump sum on the
first day of the seventh month following the Termination of Employment. All
subsequent distributions shall be paid in the manner specified.

 

2.5           Distributions Upon Income Inclusion Under Section 409A of the Code.  If,
pursuant to Code Section 409A, the Federal Insurance Contributions Act or
other state, local or foreign tax, the Executive becomes subject to tax on the
amounts deferred hereunder, then the Company may make a limited distribution to
the Executive in accordance with the provisions of Treasury Regulations Section 1.409A-3(j)(vi),
(vii) and (xi).

 

2.6           Change in Form or Timing of Distributions.  All
changes in the form or timing of distributions hereunder must comply with the
following requirements. The changes:

 

(a)           may not accelerate the time or schedule of any distribution, except as
provided in Section 409A of the Code and the regulations thereunder;

 

(b)           must, for benefits distributable under Sections 2.1, 2.2 and 2.3, delay
the commencement of distributions for a minimum of five (5) years from the
date the first distribution was originally scheduled to be made; and,

 

(c)           must take effect not less than twelve (12) months after the election is
made.

 

4

 

Article 3

 

Survivor Benefits

 

3.1           Death During Active Service.  If the Executive dies while in
the active service of the Company, the Company shall pay to the Executive’s
beneficiary the benefit described in this Section 3.1.

 

3.1.1        Amount of Benefit.  The benefit under Section 3.1 is the
lifetime benefit that would have been paid to the Executive under Section 2.1
calculated as if the date of the Executive’s death were the Normal Retirement
Date.

 

3.1.2        Payment of Benefit.  The Company shall pay the benefit to the beneficiary
on the first day of each month commencing with the month following the
Executive’s death and continuing for 179 additional months.

 

3.2           Death During Benefit Period.  If the Executive dies after
benefit payments have commenced under this Agreement but before receiving all
such payments, the Company shall pay the remaining benefits to the Executive’s
beneficiary at the same time and in the same amounts they would have been paid
to the Executive had the Executive survived.

 

3.3           Death Following Active Service Before Benefits Commence.  If
the Executive is entitled to benefit payments under this Agreement, but dies
prior to receiving said benefit payments, the Company shall pay the Executive’s
beneficiary the benefit described in this Section 3.3.

 

3.3.1        Amount of Benefit.  The benefit under Section 3.3 is the
vested benefit that would have been paid to the Executive pursuant to Schedule
A.

 

3.3.2        Payment of Benefit.  The Company shall pay the benefit to the beneficiary
on the first day of each month commencing with the month following the
Executive’s death and continuing for 179 additional months.

 

5

 

3.4           Death After Change of Control.  If Executive dies following a
Change of Control, provided Executive was in active service at the time of the
Change of Control, the Company shall pay the Executive’s beneficiary the
benefit described in this Section 3.4.

 

3.4.1        Amount of Benefit.  The benefit under Section 3.4 is the
lifetime benefit that would have been paid to the Executive under Section 2.1
calculated as if the date of the Executive’s death were the Normal Retirement
Date.

 

3.4.2        Payment of Benefit.  The Company shall pay the benefit to the beneficiary
on the first day of each month commencing with the month following the
Executive’s death and continuing for 179 additional months.

 

Article 4

 

Beneficiaries

 

4.1           Beneficiary Designations.  The Executive shall designate
a beneficiary by filing a written designation with the Company. The Executive
may revoke or modify the designation at any time by filing a new designation.
However, designations will only be effective if signed by the Executive and
accepted by the Company during the Executive’s lifetime. The Executive’s
beneficiary designation shall be deemed automatically revoked if the
beneficiary predeceases the Executive, or if the Executive names a spouse as
beneficiary and the marriage is subsequently dissolved. If the Executive dies
without a valid beneficiary designation, all payments shall be made to the
Executive’s surviving spouse, if any, and, if none, to the Executive’s
surviving children and the descendants of any deceased child by right of
representation, and if no children or descendants survive, to the Executive’s
estate.

 

4.2           Facility of Payment.
 If a benefit is payable to a minor, to a
person declared incapacitated (prior Pennsylvania law referred to such a person
as incompetent), or to a person incapable of handling the disposition of his or
her property, the Company may pay such benefit to the guardian, legal
representative or person having the care or custody of such minor,
incapacitated person or incapable person. The Company may require proof of
incapacity, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the
Company from all liability with respect to such benefit.

 

6

 

Article 5

 

General Limitations

 

Notwithstanding
any provision of this Agreement to the contrary, the Company shall not pay any
benefit under this Agreement:

 

5.1           Excess Parachute Payment.  To the extent the benefit
would be an excess parachute payment under Section 280G of the Code.

 

5.2           Termination for Cause.
 If the Company terminates the Executive’s
employment for:

 

5.2.1        Gross negligence or gross neglect of duties;

 

5.2.2        Commission of a felony or of a gross misdemeanor involving moral turpitude;
or,

 

5.2.3        Executive’s bankruptcy, fraud, disloyalty, dishonesty or willful
violation of any law or significant Company policy committed in connection with
the Executive’s employment which is inimical to the best interest of the Bank
monetarily or otherwise.

 

5.3           Competition After Termination of Employment.  No
benefits shall be payable; except for benefits paid due to a Change of Control,
if the Executive, without the prior written consent of the Company, engages in,
becomes interested in, directly or indirectly, as a sole proprietor, as a
partner in a partnership, or as a substantial shareholder in a corporation, or
becomes associated with, in the capacity of employee, director, officer,
principal, agent, trustee or in any other capacity whatsoever, any enterprise
conducted in the trading area (a fifty mile radius) of the business of the
Company which enterprise is, or may deemed to be, competitive with any business
carried on by the Company as of the date of termination of the Executive’s
employment or retirement.

 

5.4           Suicide or Misstatement.
 No benefits shall be payable if the
Executive commits suicide within two (2) years after the original date of
this Agreement, May 14, 1996, or if the

 

7

 

Executive
has made any material misstatement of fact on any application for life
insurance purchased by the Company.

 

Article 6

 

Claims and Review Procedures

 

6.1           Claims Procedure.  The Company shall notify the Executive’s
beneficiary in writing, within ninety (90) days of his or her written
application for benefits, of his or her eligibility or noneligibility for
benefits under the Agreement. If the Company determines that the beneficiary is
not eligible for benefits or full benefits, the notice shall set forth (1) the
specific reasons for such denial, (2) a specific reference to the
provisions of the Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the
claimant to perfect his or her claim, and a description of why it is needed,
and (4) an explanation of the Agreement’s claims review procedure and
other appropriate information as to the steps to be taken if the beneficiary
wishes to have the claim reviewed. If the Company determines that there are
special circumstances requiring additional time to make a decision, the Company
shall notify the beneficiary of the special circumstances and the date by which
a decision is expected to be made, and may extend the time for up to an
additional ninety (90) day period.

 

6.2           Review Procedure.  If the beneficiary is determined by the
Company not to be eligible for benefits, or if the beneficiary believes that he
or she is entitled to greater or different benefits, the beneficiary shall have
the opportunity to have such claim reviewed by the Company by filing a petition
for review with the Company within sixty (60) days after receipt of the notice
issued by the Company. Said petition shall state the specific reasons which the
beneficiary believes entitle him or her to benefits or to greater or different
benefits. Within sixty (60) days after receipt by the Company of the petition,
the Company shall afford the beneficiary (and counsel, if any) an opportunity
to present his or her position to the Company orally or in writing, and the
beneficiary (or counsel) shall have the right to review the pertinent
documents. The Company shall notify the beneficiary of its decision in writing
within the sixty (60) day period, stating specifically the basis of its
decision, written in a manner calculated to be understood by the beneficiary
and the specific provisions of the Agreement on which the decision is based.
If, because of the need for a hearing, the sixty (60) day period is not
sufficient, the decision may be deferred for up to another sixty (60) day
period at the election of the Company, but notice of this deferral shall be
given to the beneficiary.

 

8

 

Article 7

 

Amendments and Termination

 

7.1           Amendments.  This Agreement may be amended only by a
written agreement signed by the Company and the Executive. However, the Company
may unilaterally amend this Agreement to conform with written directives to the
Company from its auditors or banking regulators or to comply with legislative
changes or tax law, including without limitation Section 409A of the Code
and any and all Treasury Regulations and guidance promulgated thereunder.

 

7.2           Plan Termination Generally.  This Agreement may be
terminated only by a written agreement signed by the Company and the Executive.
The benefit hereunder shall be the amount the Company has accrued with respect
to the obligations hereunder as of the date the Agreement is terminated. Except
as provided in Section 7.3, the termination of this Agreement shall not
cause a distribution of benefits under this Agreement. Rather, after such
termination, benefit distributions will be made at the earliest distribution
event permitted under Article 2 or Article 3.

 

7.3           Plan Terminations Under Section 409A.  Notwithstanding
anything to the contrary in Section 7.2, if this Agreement terminates in
the following circumstances:

 

(a)           Within
thirty (30) days before, or twelve (12) months after a change in the ownership
or effective control of the Company, or in the ownership of a substantial
portion of the assets of the Company as described in Section 409A(2)(A)(v) of
the Code, provided that all distributions are made no later than twelve (12)
months following such termination of the Agreement and further provided that
all the Company’s arrangements which are substantially similar to the Agreement
are terminated so the Executive and all participants in the similar
arrangements are required to receive all amounts of compensation deferred under
the terminated arrangements within twelve (12) months of the termination of the
arrangements;

 

(b)           Upon
the Company’s dissolution or with the approval of a bankruptcy court provided
that the amounts deferred under the Agreement are included in the Executive’s
gross income in the latest of (i) the calendar 

 

9

 

year
in which the Agreement terminates; (ii) the calendar year in which the
amount is no longer subject to a substantial risk of forfeiture; or (iii) the
first calendar year in which the distribution is administratively practical; or,

 

(c)           Upon
the Company’s termination of this and all other arrangements that would be
aggregated with this Agreement pursuant to Treasury Regulations Section 1.409A-l
(c) if the Executive participated in such arrangements (“Similar
Arrangements”), provided that (i) the termination and liquidation does not
occur proximate to a downturn in the financial health of the Company, (ii) all
termination distributions are made no earlier than twelve (12) months and no
later than twenty-four (24) months following such termination, and (iii) the
Company does not adopt any new arrangement that would be a Similar Arrangement
for a minimum of three (3) years following the date the Company takes all
necessary action to irrevocably terminate and liquidate the Agreement;

 

the
Company may distribute the amount accrued by the Company with respect to the
Company’s obligations hereunder, determined as of the date of the termination
of the Agreement, to the Executive in a lump sum subject to the above terms.

 

Article 8

 

Miscellaneous

 

8.1           Binding Effect.  This Agreement shall bind the Executive and
the Company, and their beneficiaries, survivors, executors, successors,
administrators and transferees.

 

8.2           No Guaranty of Employment.  This Agreement is not an
employment policy or contract. It does not give the Executive the right to
remain an employee of the Company, nor does it interfere with the Company’s
right to discharge the Executive. It also does not require the Executive to
remain an employee nor interfere with the Executive’s right to terminate
employment at any time.

 

8.3           Non-Transferability.
 Benefits under this Agreement cannot be
sold, transferred, assigned, pledged, attached or encumbered in any manner.

 

10

 

8.4           Tax Withholding.  The Company shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement.

 

8.5           Applicable Law.  The Agreement and all rights hereunder shall
be governed by the laws of Pennsylvania, except to the extent preempted by the
laws of the United States of America.

 

8.6           Unfunded Arrangement.
 The Executive and beneficiary are
general unsecured creditors of the Company for the payment of benefits under
this Agreement. The benefits represent the mere promise by the Company to pay
such benefits. The rights to benefits are not subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors. Any insurance on the Executive’s life
is a general asset of the Company to which the Executive and beneficiary have
no preferred or secured claim.

 

8.7           Compliance with Section 409A.  This Agreement shall at all
times be administered and the provisions of this Agreement shall be interpreted
consistent with the requirements of Section 409A of the Code and any and
all regulations thereunder, including such regulations as may be promulgated
after the effective date of this Agreement.

 

IN
WITNESS WHEREOF, the Executive and a duly authorized Company officer have
signed this Agreement.

 

 

	
  EXECUTIVE:

  	
   

  	
  COMPANY:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adams
  County National Bank

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
					

 

11

 

ADAMS COUNTY NATIONAL BANK OF GETTYSBURG, PA

SALARY CONTINUATION AGREEMENT

BENEFICIARY DESIGNATION

 

	
  I,

  	
   

  	
  ,
  designate the following as beneficiary of any death benefits under the Salary
  

  

Continuation
Agreement:

 

Primary:

	
   

  	
   

  	
   

  	
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Contingent:

	
   

  	
   

  	
   

  	
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Note:      To name a trust as beneficiary, please provide the name of the
trustee(s) and the exact date of the trust agreement.

 

I
understand that I may change these beneficiary designations by filing a new
written designation with the Company.  I
further understand that the designations will be automatically revoked if the
beneficiary predeceases me, or, if I have named my spouse as beneficiary, in
the event of the dissolution of our marriage.

 

	
  Signature

  	
   

  	
   

  
	
   

  
	
  Date

  	
   

  	
   

  
				

 

	
  Accepted
  by the Company this

  	
   

  	
  day
  of

  	
   

  	
  .

  

 

	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  	
   

  

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]