Document:

Exhibit 4.2

  
	
   

  	
   

  	
   

  
	
  An
  8.375% Series O Cumulative

  	
   

  	
  1,100,000 Shares

  
	
  Redeemable Preferred
  Shares

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number

  	
   

  	
  CUSIP 264411 661              

  
	
  1

  	
   

  	
  See Reverse for
  Certain       

  
	
   

  	
   

  	
  Definitions and
  Restrictions

  

 

DUKE REALTY CORPORATION

 

Incorporated under
the Laws of the State of Indiana

 

This Certifies that

 

American Stock Transfer &
Trust Co., as Preferred Share Depositary

 

is the owner of one
million one hundred thousand (1,100,000) fully paid and non-assessable 8.375%
SERIES O CUMULATIVE REDEEMABLE PREFERRED SHARES, $0.01 par value ($250.00 liquidation preference), of
Duke Realty Corporation transferable on the books of the Corporation by the
holder hereof in person or by duly authorized attorney upon surrender of this
Certificate properly endorsed. This Certificate and the shares represented
hereby are issued and shall be subject to all of the provisions of the Third Amended and
Restated Articles of Incorporation and the Third Amended and
Restated By-Laws of the Corporation, each as from time to time amended (copies
of which are on file with the Transfer Agent), to all of which the holder by
acceptance hereof assents. This Certificate is not valid until countersigned
and registered by the Transfer Agent and Registrar.

 

Witness the signatures of
its duly authorized officers.

Dated: February 22,
2008

 

 

 

	
  Authorized Signatures:

  	
   

  	
   

  	
   

  
	
   

  	
  Dennis D. Oklak

  	
   

  	
  Doug Greer

  
	
   

  	
  Chairman and Chief
  Executive Officer

  	
   

  	
  Vice President, Legal and Assistant Secretary

  

 

 

Countersigned and
Registered:

American Stock Transfer &
Trust Company

Transfer Agent and
Registrar

 

	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 

DUKE REALTY CORPORATION

 

If
necessary to effect compliance by the Corporation with requirements of the
Internal Revenue Code relating to real estate investment trusts, rights of the
holder of the Shares represented by this certificate may be restricted by the
Corporation and/or the transfer thereof may be prohibited upon the terms and
conditions set forth in the Third Restated Articles of Incorporation, as
amended from time to time. The Corporation will furnish a copy of such terms
and conditions and a statement of all the powers, designations, participating,
optional or other special rights of each class of stock issued by the
Corporation and the qualifications, limitations or restrictions of such
preferences and/or rights, to the registered holder of this certificate upon
request and without charge.

 

The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

 

	
  TEN COM

  	
  —

  	
   

  	
  as tenants in common

  	
   

  	
  UNIF GIFT MIN ACT —
                
  

  	
  Custodian

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
  (Minor)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TEN ENT

  	
  —

  	
   

  	
  as tenants by the
  entireties

  	
   

  	
  under Uniform Gifts to
  Minors Act                                      
  

  	
  (State)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JT TEN

  	
  —

  	
   

  	
  as joint tenants with
  right of survivorship

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  and not as tenants in
  common

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
											

 

For
value received,                                     
hereby sell, assign and transfer unto                     
(Please insert social security or other identifying number of assignee)                                                                                                                                       
(Please print or typewrite name and address, including zip code, of assignee)                                                         
shares of the capital stock represented by the within Certificate, and do
hereby irrevocably constitute and appoint                                                             
Attorney to transfer the said stock on the books of the within named
Corporation with full power of substitution in the premises.

 

	
  Dated

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:

  	
   

  	
  The
  signature to this assignment must correspond with the name as written upon
  the face of the certificate in every particular, without alteration or
  enlargement or any change whatever.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature(s) Guaranteed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  The
  signature(s) should be guaranteed by an eligible guarantor institution
  (banks, stockbrokers, savings and loan associations and credit unions with
  membership in an approved signature guarantee medallion program), pursuant to
  S.E.C. Rule 17Ad-15.

  

 

KEEP
THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR
DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO
THE ISSUANCE OF A REPLACEMENT CERTIFICATE.Exhibit 4.1

 

TRUST AGREEMENT

 

by and between

 

HARLEY-DAVIDSON
CUSTOMER FUNDING CORP.,

as Trust
Depositor,

 

and

 

WILMINGTON TRUST
COMPANY,

as Owner Trustee

 

Dated as of January 1, 2008

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  ONE

  	
   

  	
  DEFINITIONS

  	
  1 

  
	
  Section 1.01.

  	
   

  	
  Capitalized
  Terms

  	
  1

  
	
  Section 1.02.

  	
   

  	
  Other
  Definitional Provisions

  	
  3

  
	
  Section 1.03.

  	
   

  	
  Usage
  of Terms

  	
  3

  
	
  Section 1.04.

  	
   

  	
  Section References

  	
  3

  
	
  Section 1.05.

  	
   

  	
  Accounting
  Terms

  	
  3

  
	
  ARTICLE
  TWO

  	
   

  	
  ORGANIZATION

  	
  3 

  
	
  Section 2.01.

  	
   

  	
  Name

  	
  3

  
	
  Section 2.02.

  	
   

  	
  Office

  	
  4

  
	
  Section 2.03.

  	
   

  	
  Purposes
  and Powers

  	
  4

  
	
  Section 2.04.

  	
   

  	
  Appointment
  of Owner Trustee

  	
  4

  
	
  Section 2.05.

  	
   

  	
  Initial
  Capital Contribution of Owner Trust Estate

  	
  5

  
	
  Section 2.06.

  	
   

  	
  Declaration
  of Trust

  	
  5

  
	
  Section 2.07.

  	
   

  	
  Liability
  of Trust Depositor

  	
  5

  
	
  Section 2.08.

  	
   

  	
  Title
  to Trust Property

  	
  5

  
	
  Section 2.09.

  	
   

  	
  Situs
  of Trust

  	
  5

  
	
  Section 2.10.

  	
   

  	
  Representations
  and Warranties of the Trust Depositor

  	
  5

  
	
  Section 2.11.

  	
   

  	
  Federal
  Income Tax Treatment

  	
  6

  
	
  Section 2.12.

  	
   

  	
  Texas
  State Tax Matters

  	
  7

  
	
  ARTICLE
  THREE

  	
   

  	
  TRUST
  CERTIFICATE AND TRANSFER OF INTERESTS

  	
  7 

  
	
  Section 3.01.

  	
   

  	
  Initial
  Ownership

  	
  7

  
	
  Section 3.02.

  	
   

  	
  The
  Trust Certificate

  	
  8

  
	
  Section 3.03.

  	
   

  	
  Authentication
  and Delivery of Trust Certificate

  	
  8

  
	
  Section 3.04.

  	
   

  	
  Registration
  of Transfer and Exchange of Trust Certificate

  	
  8

  
	
  Section 3.05.

  	
   

  	
  Mutilated,
  Destroyed, Lost or Stolen Trust Certificate

  	
  9

  
	
  Section 3.06.

  	
   

  	
  Person
  Deemed Owner

  	
  9

  
	
  Section 3.07.

  	
   

  	
  Access
  to List of Certificateholder’s Name and Address

  	
  9

  
	
  Section 3.08.

  	
   

  	
  Maintenance
  of Office or Agency

  	
  9

  
	
  Section 3.09.

  	
   

  	
  Trust
  Certificate

  	
  10

  
	
  Section 3.10.

  	
   

  	
  Appointment
  of Paying Agent

  	
  10

  
	
  Section 3.11.

  	
   

  	
  Ownership
  by Trust Depositor of Trust Certificate

  	
  10

  
	
  ARTICLE
  FOUR

  	
   

  	
  ACTIONS
  BY OWNER TRUSTEE

  	
  10 

  
	
  Section 4.01.

  	
   

  	
  Prior
  Notice to Owner with Respect to Certain Matters

  	
  10

  
	
  Section 4.02.

  	
   

  	
  Action
  by Owner with Respect to Certain Matters

  	
  11

  
	
  Section 4.03.

  	
   

  	
  Action
  by Owner with Respect to Bankruptcy

  	
  11

  
	
  Section 4.04.

  	
   

  	
  Restrictions
  on Owner’s Power

  	
  11

  
	
  ARTICLE
  FIVE

  	
   

  	
  APPLICATION
  OF TRUST FUNDS; CERTAIN DUTIES

  	
  11 

  
	
  Section 5.01.

  	
   

  	
  Application
  of Trust Funds

  	
  11

  
	
  Section 5.02.

  	
   

  	
  Method
  of Payment

  	
  12

  
	
  Section 5.03.

  	
   

  	
  Accounting
  and Reports to the Certificateholder, Owner, the Internal Revenue Service and
  Others

  	
  12

  
	
  Section 5.04.

  	
   

  	
  Signature
  on Returns; Tax Matters Partner

  	
  12

  
	
  ARTICLE
  SIX

  	
   

  	
  AUTHORITY
  AND DUTIES OF OWNER TRUSTEE

  	
  13 

  
	
  Section 6.01.

  	
   

  	
  General
  Authority

  	
  13

  
	
  Section 6.02.

  	
   

  	
  General
  Duties

  	
  13

  
	
  Section 6.03.

  	
   

  	
  Action
  Upon Instruction

  	
  13

  
	
  Section 6.04.

  	
   

  	
  No
  Duties Except as Specified in this Agreement or in Instructions

  	
  14

  
	
  Section 6.05.

  	
   

  	
  No
  Action Except Under Specified Documents or Instructions

  	
  14

  
	
  Section 6.06.

  	
   

  	
  Restrictions

  	
  14

  

 

 

 

	
  Section 6.07.

  	
   

  	
  Pennsylvania
  Motor Vehicle Sales Finance Act Licenses

  	
  15

  
	
  ARTICLE SEVEN

  	
   

  	
  CONCERNING THE OWNER TRUSTEE

  	
  15 

  
	
  Section 7.01.

  	
   

  	
  Acceptance
  of Trusts and Duties

  	
  15

  
	
  Section 7.02.

  	
   

  	
  Furnishing
  of Documents

  	
  16

  
	
  Section 7.03.

  	
   

  	
  Representations
  and Warranties

  	
  16

  
	
  Section 7.04.

  	
   

  	
  Reliance;
  Advice of Counsel

  	
  16

  
	
  Section 7.05.

  	
   

  	
  Not
  Acting in Individual Capacity

  	
  17

  
	
  Section 7.06.

  	
   

  	
  Owner
  Trustee Not Liable for Trust Certificate, Notes or Contracts

  	
  17

  
	
  Section 7.07.

  	
   

  	
  Owner
  Trustee May Own Trust Certificate and Notes

  	
  17

  
	
  ARTICLE EIGHT

  	
   

  	
  COMPENSATION OF OWNER TRUSTEE

  	
  18 

  
	
  Section 8.01.

  	
   

  	
  Owner
  Trustee’s Fees and Expenses

  	
  18

  
	
  Section 8.02.

  	
   

  	
  Indemnification

  	
  18

  
	
  Section 8.03.

  	
   

  	
  Payments
  to the Owner Trustee

  	
  18

  
	
  ARTICLE NINE

  	
   

  	
  TERMINATION OF TRUST AGREEMENT

  	
  18 

  
	
  Section 9.01.

  	
   

  	
  Termination
  of Trust Agreement

  	
  18

  
	
  ARTICLE TEN

  	
   

  	
  SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER
  TRUSTEES

  	
  19 

  
	
  Section 10.01.

  	
   

  	
  Eligibility
  Requirements for Owner Trustee

  	
  19

  
	
  Section 10.02.

  	
   

  	
  Resignation
  or Removal of Owner Trustee

  	
  20

  
	
  Section 10.03.

  	
   

  	
  Successor
  Owner Trustee

  	
  20

  
	
  Section 10.04.

  	
   

  	
  Merger
  or Consolidation of Owner Trustee

  	
  21

  
	
  Section 10.05.

  	
   

  	
  Appointment
  of Co-Trustee or Separate Trustee

  	
  21

  
	
  ARTICLE ELEVEN

  	
   

  	
  MISCELLANEOUS

  	
  22 

  
	
  Section 11.01.

  	
   

  	
  Supplements
  and Amendments

  	
  22

  
	
  Section 11.02.

  	
   

  	
  No
  Legal Title to Trust Estate in Owner

  	
  23

  
	
  Section 11.03.

  	
   

  	
  Limitations
  on Rights of Others

  	
  23

  
	
  Section 11.04.

  	
   

  	
  Notices

  	
  23

  
	
  Section 11.05.

  	
   

  	
  Severability
  of Provisions

  	
  23

  
	
  Section 11.06.

  	
   

  	
  Counterparts

  	
  24

  
	
  Section 11.07.

  	
   

  	
  Successors
  and Assigns

  	
  24

  
	
  Section 11.08.

  	
   

  	
  Covenants
  of the Trust Depositor

  	
  24

  
	
  Section 11.09.

  	
   

  	
  No
  Petition

  	
  24

  
	
  Section 11.10.

  	
   

  	
  No
  Recourse

  	
  24

  
	
  Section 11.11.

  	
   

  	
  Headings

  	
  25

  
	
  Section 11.12.

  	
   

  	
  Governing
  Law

  	
  25

  
	
  Section 11.13.

  	
   

  	
  Trust
  Certificate Transfer Restrictions

  	
  25

  
	
  Section 11.14.

  	
   

  	
  Trust
  Depositor Payment Obligation

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A - Form of Certificate of Trust

  	
  A-1 

  
	
  Exhibit B - Form of Trust Certificate

  	
  B-1 

  
					

 

 

ii

 

TRUST AGREEMENT dated as
of January 1, 2008, between HARLEY-DAVIDSON CUSTOMER FUNDING CORP., a
Nevada corporation, as Trust Depositor (the “Trust Depositor”),
and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as owner trustee
(the “Owner Trustee”).

 

WHEREAS, in connection
herewith, the Trust Depositor is willing to assume certain obligations pursuant
hereto; and

 

WHEREAS, in connection
herewith, the Trust Depositor is willing to purchase the Trust Certificate (as
defined herein) to be issued pursuant to this Agreement and to assume certain
obligations pursuant hereto;

 

NOW, THEREFORE, the
parties hereto hereby agree as follows:

 

ARTICLE ONE

DEFINITIONS

 

Section 1.01.        Capitalized Terms. 
Except as otherwise provided in this Agreement, whenever used in this
Agreement the following words and phrases, unless the context otherwise
requires, shall have the following meanings:

 

“Administration  Agreement” means the Administration Agreement, dated as of February 15,
2008, among the Trust, the Trust Depositor, the Indenture Trustee and
Harley-Davidson Credit, as administrator.

 

“Agreement” means this Trust Agreement, as the same
may be amended and supplemented from time to time.

 

“Benefit Plan” means (i) an employee benefit plan
(as such term is defined in Section 3(3) of ERISA) that is subject to
the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code or (iii) any entity whose underlying assets include plan assets
by reason of a plan’s investment in the entity.

 

“Certificate of Trust” means the Certificate of Trust filed for
the Trust pursuant to Section 3810(a) of the Statutory Trust Statute,
substantially in the form of Exhibit A
hereto.

 

“Certificate Register” and “Certificate Registrar”
mean the register maintained and the registrar (or any successor thereto)
appointed pursuant to Section 3.04.

 

“Certificateholder” or “Holder” means
with respect to a Trust Certificate the Person in whose name the Trust
Certificate is registered in the Certificate Register.

 

“Clearing Agency” means an organization registered as a “Clearing
Agency” pursuant to Section 17A of the Exchange Act.

 

 

1

 

“Code” means the Internal Revenue Code of 1986,
as amended.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended.

 

“Exchange
Act” means the
Securities Exchange Act of 1934, as amended.

 

“Expenses” shall have the meaning assigned to such
term in Section 8.02.

 

“Harley-Davidson
Credit” means
Harley-Davidson Credit Corp., a Nevada corporation.

 

“Indemnified Parties” shall have the meaning assigned to such
term in Section 8.02.

 

“Indenture” 
means the Indenture dated as of February 15, 2008 between the Trust
and The Bank of New York Trust Company, N.A.

 

“Owner” means the Holder of the Trust
Certificate.

 

“Owner Trustee” means Wilmington Trust Company, a
Delaware corporation, not in its individual capacity but solely as owner
trustee under this Agreement, and any successor Owner Trustee hereunder.

 

“Owner Trustee Corporate Trust
Office” means the
office of the Owner Trustee at which its corporate trust business shall be
administered, which initially shall be Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890-0001 Attn: Corporate Trust Administration,
or such other office at such other address as the Owner Trustee may designate
from time to time by notice to the Certificateholder, the Servicer, the
Indenture Trustee, the Trust Depositor and Harley-Davidson Credit.

 

“Paying Agent” means any paying agent or co-paying
agent appointed pursuant to Section 3.10.

 

“Person” means any individual, corporation,
estate, partnership, joint venture, association, joint stock company, trust
(including any beneficiary thereof) unincorporated organization or government
or any agency or political subdivision thereof.

 

“Record Date” means, with respect to any Distribution
Date, the last Business Day of the preceding calendar month.

 

“Sale and Servicing Agreement” means the Sale and Servicing Agreement,
dated as of February 15, 2008, among the Trust, as Issuer, the Trust
Depositor, Harley-Davidson Credit, as servicer, and The Bank of New York Trust
Company, N.A., as Indenture Trustee, as the same may be amended or supplemented
from time to time.

 

“Secretary of State” means the Secretary of State of the State
of Delaware.

 

“Statutory Trust Statute” means Chapter 38 of Title 12 of the
Delaware Code, 12 Del. Code § 3801 et seq., as the same may be amended from time to time.

 

“Tax Matters Partner” shall have the meaning provided in Section 5.04(b) hereof.

 

 

2

 

“Treasury Regulations” means regulations, including proposed or
temporary regulations, promulgated under the Code.  References herein to specific provisions of
proposed or temporary regulations shall include analogous provisions of final
Treasury Regulations or other successor Treasury Regulations.

 

“Trust” means the trust established by this
Agreement.

 

“Trust Certificate” means the trust certificate evidencing
the beneficial equity interest of  the
Owner, substantially in the form of Exhibit B
hereto.

 

“Trust Depositor” means Harley-Davidson Customer Funding
Corp. in its capacity as Trust Depositor hereunder, and its successors.

 

“Trust
Estate” means all right, title and interest of the Trust in and to the
property and rights assigned to the Trust pursuant to Article Two of the
Sale and Servicing Agreement, all funds on deposit from time to time in the
Trust Accounts, the proceeds of the Interest Rate Swap Agreement and all other
property of the Trust from time to time, including any rights of the Owner
Trustee and the Trust pursuant to the Sale and Servicing Agreement and the
Administration Agreement.

 

Section 1.02.        Other Definitional Provisions. 
Capitalized terms used that are not otherwise defined herein shall have
the meanings ascribed thereto in the Sale and Servicing Agreement or, if not
defined therein, in the Indenture.

 

Section 1.03.        Usage of Terms. 
With respect to all terms in this Agreement, the singular includes the
plural and the plural the singular; words importing any gender include the
other genders; references to “writing”
include printing, typing, lithography and other means of reproducing words in a
visible form; references to agreements and other contractual instruments
include all amendments, modifications and supplements thereto or any changes
therein entered into in accordance with their respective terms and not
prohibited by this Agreement; references to Persons include their permitted successors
and assigns; and the term “including” means “including without limitation”.

 

Section 1.04.        Section References. 
All section references, unless otherwise indicated, shall be to Sections
in this Agreement.

 

Section 1.05.        Accounting Terms. 
All accounting terms used but not specifically defined herein shall be
construed in accordance with generally accepted accounting principles in the
United States.

 

ARTICLE TWO

ORGANIZATION

 

Section 2.01.        Name.  The Trust
created hereby shall be known as “Harley-Davidson  Motorcycle Trust 2008-1”, in which
name the Owner Trustee may conduct the activities of the Trust, make and
execute contracts and other instruments on behalf of the Trust and sue and be
sued.

 

 

3

 

Section 2.02.        Office.  The office of
the Trust shall be in care of the Owner Trustee at the Owner Trustee Corporate
Trust Office or at such other address in Delaware as the Owner Trustee may
designate by written notice to the Owner and the Trust Depositor.

 

Section 2.03.        Purposes and Powers.

 

(a)           The sole purpose of the Trust is to
manage the Trust Estate and collect and disburse the periodic income therefrom
for the use and benefit of the Owner, and in furtherance of such purpose to
engage in the following ministerial activities:

 

(i)            to
issue the Notes pursuant to the Indenture and the Trust Certificate pursuant to
this Agreement and to sell the Notes;

 

(ii)           with
the proceeds of the sale of the Notes, to purchase the Contracts, to fund the
Reserve Fund and to pay the organizational, start-up and transactional expenses
of the Trust and to pay the balance to the Trust Depositor pursuant to the Sale
and Servicing Agreement;

 

(iii)          to
assign, grant, transfer, pledge, mortgage and convey the Trust Estate pursuant
to the Indenture and to hold, manage and distribute to the Owner pursuant to
the Sale and Servicing Agreement any portion of the Trust Estate released from
the Lien of, and remitted to the Trust pursuant to, the Indenture;

 

(iv)          to
enter into and perform its obligations under the Transaction Documents to which
it is to be a party;

 

(v)           to
enter into interest rate swaps in connection with the Notes;

 

(vi)          to
engage in those activities, including entering into agreements, that are
necessary, suitable or convenient to accomplish the foregoing or are incidental
thereto or connected therewith; and

 

(vii)         subject
to compliance with the Transaction Documents, to engage in such other
activities as may be required in connection with conservation of the Trust
Estate and the making of distributions to the Owner, the Noteholders and the
Swap Counterparty.

 

The Trust shall not engage in any activities other
than in connection with the foregoing. 
Nothing contained herein shall be deemed to authorize the Owner Trustee
to engage in any business operations or any activities other than those set
forth in the introductory sentence of this Section.  Specifically, the Owner Trustee shall have no
authority to engage in any business operations, or acquire any assets other
than those specifically included in the Trust Estate under Section 1.01,
or otherwise vary the assets held by the Trust. 
Similarly, the Owner Trustee shall have no discretionary duties other
than performing those ministerial acts set forth above necessary to accomplish
the purpose of this Trust as set forth in the introductory sentence of this
Section.

 

Section 2.04.        Appointment of Owner Trustee. 
The Trust Depositor hereby appoints the Owner Trustee as trustee of the
Trust effective as of the date hereof, to have all the rights, powers and
duties set forth herein, and the Owner Trustee hereby accepts such appointment.

 

 

4

 

Section 2.05.        Initial Capital Contribution of Owner
Trust Estate.  The Trust Depositor hereby sells, assigns,
transfers, conveys and sets over to the Owner Trustee, as of the date hereof,
the sum of $1.  The Owner Trustee hereby
acknowledges receipt in trust from the Trust Depositor, as of the date hereof,
of the foregoing contribution, which shall constitute the initial Trust
Estate.  The Trust Depositor shall pay
organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

 

Section 2.06.        Declaration of Trust. 
The Owner Trustee hereby declares that it will hold the Trust Estate in
trust upon and subject to the conditions set forth herein for the sole purpose
of conserving the Trust Estate and collecting and disbursing the periodic
income therefrom for the use and benefit of the Owner, subject to the
obligations of the Trust under the Transaction Documents.  It is the intention of the parties hereto
that the Trust constitute a statutory trust under the Statutory Trust Statute and
that this Agreement constitute the governing instrument of such statutory
trust.  Effective as of the date hereof,
the Owner Trustee shall have all rights, powers and duties set forth herein and
in the Statutory Trust Statute for the sole purpose and to the extent necessary
to accomplish the purpose of this Trust as set forth in the introductory
sentence of Section 2.03.

 

Section 2.07.        Liability of Trust Depositor.

 

(a)           All liabilities of the Trust, to the
extent not paid by a third party, are and shall be obligations of the Trust and
when due and payable shall be satisfied out of the Trust Estate.

 

(b)           Except as provided in the Statutory
Trust Statute, the Certificateholder shall not be personally liable for any
liability of the Trust.

 

Section 2.08.        Title to Trust Property. 
Legal title to the Trust Estate shall be vested at all times in the
Trust as a separate legal entity except where applicable law in any
jurisdiction requires title to any part of the Trust Estate to be vested in an  Owner Trustee or Owner Trustees, in which
case title shall be deemed to be vested in the Owner Trustee, a co-trustee
and/or a separate trustee, as the case may be.

 

Section 2.09.        Situs of Trust. 
The Trust will be located and administered in the State of
Delaware.  All bank accounts maintained
by the Owner Trustee on behalf of the Trust shall be located in the State of
Illinois or the State of Delaware.  The
Trust shall not have any employees in any state other than Delaware; provided, however, that nothing herein shall restrict or
prohibit the Owner Trustee from having employees within or without the State of
Delaware.  Payments will be received by
the Trust only in Delaware and payments will be made by the Trust only from
Delaware.  The only office of the Trust
will be at the Owner Trustee Corporate Trust Office.

 

Section 2.10.        Representations and Warranties of the
Trust Depositor.

 

The Trust Depositor
hereby represents and warrants to the Owner Trustee that:

 

(i)            The
Trust Depositor is duly organized and validly existing as a corporation
organized and existing and in good standing under the laws of the State of
Nevada, with power and authority to own its properties and to conduct its
business and had at all relevant times, and has, power, authority and legal
right to acquire and own the Contracts.

 

 

5

 

(ii)           The
Trust Depositor is duly qualified to do business as a foreign corporation in
good standing and has obtained all necessary licenses and approvals in all
jurisdictions in which the ownership or lease of property or the conduct of its
business requires such qualifications.

 

(iii)          The
Trust Depositor has the power and authority to execute and deliver this
Agreement and to carry out its terms; the Trust Depositor has full power and
authority to sell and assign the property to be sold and assigned to and
deposited with the Owner Trustee on behalf of the Trust as part of the Trust
Estate and has duly authorized such sale and assignment and deposit with the
Owner Trustee on behalf of the Trust by all necessary corporate action; and the
execution, delivery and performance of this Agreement have been duly authorized
by the Trust Depositor by all necessary corporate action.

 

(iv)          The
consummation of the transactions contemplated by this Agreement and the
fulfillment of the terms hereof do not conflict with, result in any breach of
any of the terms and provisions of, nor constitute (with or without notice or
lapse of time) a default under, the articles of incorporation or bylaws of the Trust
Depositor, or any indenture, agreement or other instrument to which the Trust
Depositor is a party or by which it is bound; nor result in the creation or
imposition of any Lien upon any of the properties of the Trust Depositor
pursuant to the terms of any such indenture, agreement or other instrument
(other than pursuant to the Transaction Documents); nor violate any law or any
order, rule or regulation applicable to the Trust Depositor of any court
or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Trust Depositor or
its properties.

 

(v)           There
are no proceedings or investigations pending, or to the Trust Depositor’s best
knowledge threatened, before any court, regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Trust
Depositor or its properties: (A) asserting the invalidity of this
Agreement, any of the other Transaction Documents or the Trust Certificate, (B) seeking
to prevent the issuance of the Trust Certificate or the consummation of any of
the transactions contemplated by this Agreement or any of the other Transaction
Documents, (C) seeking any determination or ruling that might materially
and adversely affect the performance by the Trust Depositor of its obligations
under, or the validity or enforceability of, this Agreement, any of the other
Transaction Documents or the Trust Certificate or (D) involving the Trust
Depositor and which might adversely affect the federal income tax or other
federal, state or local tax attributes of the Trust Certificate.

 

Section 2.11.        Federal Income Tax Treatment.

 

It is the intention of
the Trust Depositor that the Trust be disregarded as a separate entity pursuant
to Treasury Regulations Section 301.7701-3(b)(1)(ii) as in effect for
periods after January 1, 1997.  The
Trust Certificate constitutes the sole equity interest in the Trust and must at
all times be held by either the Trust Depositor or its transferee as sole
owner.  The Trust Depositor agrees not to
take any action inconsistent with such intended federal income tax
treatment.  Because for federal income
tax purposes the Trust will be disregarded as a separate entity, Trust items of
income, gain, loss and deduction for any month as determined for federal income
tax purposes shall be allocated entirely to the Trust Depositor (or subsequent
purchaser of the Trust Certificate) as the sole Certificateholder.

 

 

6

 

Section 2.12.        Texas State Tax Matters.

 

For purposes of Texas
franchise taxes, it is the intention of the parties that the Trust be
classified (i) as a passive entity within the meaning of Sections 171.0002
through 171.0004 of the Texas Tax Code, and (ii) not as a “business trust”
within the meaning of Treasury Regulations Section 301.7701-4(b).  The Trust Depositor and the
Certificateholder, by acceptance of a Certificate, agree to treat the Trust
consistent with such intention, unless otherwise required by law.  Notwithstanding anything to the contrary
contained herein, nothing in this Agreement should be read to imply that the
Trust is doing business in Texas or has sufficient nexus with Texas in order
for the Texas franchise tax to apply to the Trust.

 

ARTICLE THREE

 

TRUST CERTIFICATE AND TRANSFER OF INTERESTS

 

Section 3.01.        Initial
Ownership.

 

(a)           Upon the formation of the Trust by
the contribution by the Trust Depositor pursuant to Section 2.05 and until
the issuance of the Trust Certificate, the Trust Depositor shall be the sole
beneficiary of the Trust.  The Trust
Certificate must at all times be held by either the Trust Depositor or its
transferee as sole owner.

 

(b)           No transfer of the Trust Certificate
shall be made unless such transfer is made in a transaction which does not
require registration or qualification under the Securities Act of 1933 or
qualification under any state securities or “Blue Sky” laws.  Neither the Owner Trustee nor the Certificate
Registrar shall effect the registration of any transfer of the Trust
Certificate unless, (i) prior to such transfer the Owner Trustee shall
have received an opinion of counsel to the Owner Trustee that the transfer
of the Trust Certificate is being made pursuant to an effective
registration under the Securities Act of 1933 or is exempt from the
registration requirements of the Securities Act of 1933, and (ii) following
such transfer, there would be no more than one holder of the Trust Certificate
and the holder of the Trust Certificate would not be a Foreign Person, a partnership,
Subchapter S corporation or grantor trust.

 

 

7

 

Section 3.02.                                The Trust Certificate.  The Trust Certificate shall be substantially in the
form of Exhibit B hereto.  The Trust Certificate shall be executed by
the Owner Trustee on behalf of the Trust by manual or facsimile signature of an
authorized officer of the Owner Trustee and shall be deemed to have been
validly issued when so executed.  The
Trust Certificate bearing the manual or facsimile signature of individuals who
were, at the time when such signatures were affixed, authorized to sign on
behalf of the Owner Trustee shall be a valid and binding obligation of the
Trust, notwithstanding that such individuals or any of them have ceased to be
so authorized prior to the authentication and delivery of such Trust
Certificate or did not hold such offices at the date of such Trust
Certificate.  The Trust Certificate shall
be dated the date of its authentication.

 

Section 3.03.                                Authentication and Delivery of
Trust Certificate.  The Owner Trustee shall cause to be
authenticated and delivered upon the order of the Trust Depositor, in exchange
for the Contracts and the other Trust Assets, simultaneously with the sale,
assignment and transfer to the Trust of the Contracts and other Trust Assets,
and the constructive delivery to the Owner Trustee of the Contract Files and
the other Trust Assets, a Trust Certificate duly authenticated by the Owner
Trustee, evidencing the entire ownership of the Trust, and Notes issued by the
Owner Trustee and authenticated by the Indenture Trustee in aggregate principal
amount of, in the case of (i) Class A-1 Notes, $93,000,000, (ii) Class A-2
Notes, $197,000,000, (iii) Class A-3a Notes, $55,000,000, (iv) Class A-3b
Notes, $70,000,000, (v) Class A-4 Notes, $71,000,000, (vi) Class B
Notes, $37,800,000 and (vii) Class C Notes, $16,200,000 or be valid
for any purpose, unless there appears on such Trust Certificate a certificate
of authentication substantially in the form set forth in the form of Trust
Certificate attached hereto as Exhibit B,
executed by the Owner Trustee or its authenticating agent, by manual signature,
and such certificate upon any Trust Certificate shall be conclusive evidence,
and the only evidence, that such Trust Certificate has been duly authenticated
and delivered hereunder.  Upon issuance,
authorization and delivery pursuant to the terms hereof, the Trust Certificate
will be entitled to the benefits of this Agreement.

 

Section 3.04.                                Registration of Transfer and
Exchange of Trust Certificate.

 

(a)           The Certificate Registrar shall keep
or cause to be kept, a Certificate Register, subject to such reasonable
regulations as it may prescribe.  The
Certificate Register shall provide for the registration of the Trust
Certificate and transfers and exchanges of the Trust Certificate as provided
herein.  The Owner Trustee is hereby
initially appointed Certificate Registrar for the purpose of registering the
Trust Certificate and transfers and exchanges of the Trust Certificate as
herein provided.  In the event that,
subsequent to the Closing Date, the Owner Trustee notifies the Servicer that it
is unable to act as Certificate Registrar, the Servicer shall appoint another
bank or trust company, having an office or agency located in the City of
Chicago, Illinois, agreeing to act in accordance with the provisions of this
Agreement applicable to it, and otherwise acceptable to the Owner Trustee, to
act as successor Certificate Registrar hereunder.

 

(b)           Upon surrender for registration of
transfer of the Trust Certificate at the Owner Trustee Corporate Trust Office,
the Owner Trustee shall execute, authenticate and deliver (or shall cause its
authenticating agent to authenticate and deliver), in the name of the
designated transferee, the new Trust Certificate having the same aggregate
principal amount.

 

(c)           Every Trust Certificate presented or
surrendered for registration of transfer shall be accompanied by a written
instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar duly executed by the Holder thereof or his attorney duly
authorized in writing.

 

8

 

(d)           No service charge shall be made for
any registration of transfer or exchange of the Trust Certificate, but the
Owner Trustee may require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer of the
Trust Certificate.

 

(e)           All Trust Certificates surrendered
for registration of transfer shall be canceled and subsequently destroyed by
the Owner Trustee.

 

Section 3.05.                                Mutilated, Destroyed, Lost or
Stolen Trust Certificate.  If (i) any mutilated
Trust Certificate is surrendered to the Certificate Registrar, or the
Certificate Registrar receives evidence to its satisfaction of the destruction,
loss or theft of any Trust Certificate, and (ii) there is delivered to the
Certificate Registrar and the Owner Trustee such security or indemnity as may
be required by them to save each of them harmless, then, in the absence of
notice that such Trust Certificate has been acquired by a bona fide purchaser,
the Owner Trustee on behalf of the Trust shall execute and the Owner Trustee or
its authenticating agent shall authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Trust Certificate, a new
Trust Certificate of like tenor and fractional undivided interest.  In connection with the issuance of any new
Trust Certificate under this Section, the Owner Trustee may require the payment
by the Holder of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto. 
Any duplicate Trust Certificate issued pursuant to this Section shall
constitute complete and indefeasible evidence of ownership in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Trust
Certificate shall be found at any time.

 

Section 3.06.                                Person Deemed Owner. 
Prior to due presentation of a Trust Certificate for registration of
transfer, the Owner Trustee, the Certificate Registrar and any of their
respective agents may treat the Person in whose name any Trust Certificate is
registered as the owner of such Trust Certificate for the purpose of receiving
distributions pursuant to Section 5.01 and for all other purposes
whatsoever, and none of the Owner Trustee, the Certificate Registrar, any
Paying Agent or any of their respective agents shall be affected by any notice
of the contrary.

 

Section 3.07.                                Access to List of
Certificateholder’s Name and Address.  The Owner
Trustee shall furnish or cause to be furnished to the Servicer and the Trust
Depositor, within 15 days after receipt by the Certificate Registrar of a
written request therefor from the Servicer or the Trust Depositor, the name and
address of the Certificateholder as of the most recent Record Date in such form
as the Servicer or the Trust Depositor may reasonably require.  The Certificateholder, by receiving and
holding the Trust Certificate, agrees with the Servicer, the Trust Depositor
and the Owner Trustee that none of the Servicer, the Trust Depositor or the
Owner Trustee shall be held accountable by reason of the disclosure of any such
information as to the name and address of the Certificateholder hereunder,
regardless of the source from which such information was derived.

 

Section 3.08.                                Maintenance of Office or Agency. 
The Owner Trustee shall maintain in Wilmington, Delaware, an office or
offices or agency or agencies where the Trust Certificate may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Owner Trustee in respect of the Trust Certificate and this Agreement
may be served.  The Owner Trustee hereby
designates the Owner Trustee Corporate Trust Office as its office for such
purposes.  The Owner Trustee shall give
prompt written notice to the Trust Depositor, the Servicer and to the
Certificateholder of any change in the location of the Certificate Register or
any such office or agency.

 

9

 

Section 3.09.                                Trust Certificate. 
The Owner Trustee, on behalf of the Trust, shall execute, authenticate
and deliver, a Trust Certificate.

 

Section 3.10.                                Appointment of Paying Agent. 
The Paying Agent shall make distributions to the Certificateholder
pursuant to Section 5.01(a) and shall report the amounts of such
distributions to the Owner Trustee.  The
Paying Agent initially shall be The Bank of New York Trust Company, N.A., and
any co-paying agent chosen by the Paying Agent that is acceptable to the Owner
Trustee.  Each Paying Agent shall be
permitted to resign as Paying Agent upon 30 days’ written notice to the Owner
Trustee.  In the event that The Bank of
New York Trust Company, N.A. shall no longer be the Paying Agent, the Owner
Trustee shall appoint a successor to act as Paying Agent (which shall be a bank
or trust company).  The Owner Trustee
shall cause such successor Paying Agent or any additional Paying Agent
appointed by the Owner Trustee to execute and deliver to the Owner Trustee an
instrument in which such successor Paying Agent or additional Paying Agent
shall agree with the Owner Trustee that, as Paying Agent, such successor Paying
Agent or additional Paying Agent will hold all sums, if any, held by it for
payment to the Certificateholder in trust for the benefit of the
Certificateholder entitled thereto until such sums shall be paid to such
Certificateholder.  The Paying Agent
shall return all unclaimed funds to the Owner Trustee and upon removal of a
Paying Agent such Paying Agent shall also return all funds in its possession to
the Owner Trustee.  The provisions of Sections
7.01, 7.03, 7.04 and 8.01 shall apply to the Owner Trustee also in its role as
Paying Agent, for so long as the Owner Trustee shall act as Paying Agent and,
to the extent applicable, to any other paying agent appointed hereunder.  Any reference in this Agreement to the Paying
Agent shall include any co-paying agent unless the context requires otherwise.

 

Section 3.11.                                Ownership by Trust Depositor of
Trust Certificate.  The Trust Depositor shall on the Closing Date
hold the Trust Certificate.

 

ARTICLE FOUR

ACTIONS BY OWNER TRUSTEE

 

Section 4.01.                                Prior Notice to Owner with
Respect to Certain Matters.  Subject to
the provisions and limitation of Section 4.04, with respect to the
following matters, the Owner Trustee shall not take action unless at least 30
days before the taking of such action, the Owner Trustee shall have notified
the Certificateholder in writing of the proposed action, the Indenture Trustee
shall have consented to such action in the event any Notes are outstanding and
the Owner shall not have notified the Owner Trustee in writing prior to the
30th day after such notice is given that the Owner has withheld consent or
provided alternative direction:

 

(a)           the initiation of any claim or
lawsuit by the Trust (except claims or lawsuits brought in connection with the
collection of the Contracts) and the compromise of any action, claim or lawsuit
brought by or against the Trust (except with respect to the aforementioned
claims or lawsuits for collection of the Contracts);

 

(b)           the election by the Trust to file an
amendment to the Certificate of Trust (unless such amendment is required to be
filed under the Statutory Trust Statute);

 

10

 

(c)           the amendment of the Indenture by a
supplemental indenture in circumstances where the consent of any Noteholder or
the Swap Counterparty is required;

 

(d)           the amendment of the Indenture by a
supplemental indenture in circumstances where the consent of any Noteholder or
the Swap Counterparty is not required and such amendment materially and
adversely affects the interest of the Owner;

 

(e)           the amendment, change or modification
of the Administration Agreement, except to cure any ambiguity or to amend or
supplement any provision in a manner or add any provision that would not
materially and adversely affect the interests of the Owner; or

 

(f)            the appointment pursuant to the
Indenture of a successor Note Registrar or Indenture Trustee or pursuant to
this Agreement of a successor Certificate Registrar, or the consent to the
assignment by the Note Registrar, Indenture Trustee or Certificate Registrar of
its obligations under the Indenture or the Agreement, as applicable.

 

Section 4.02.                                Action by Owner with Respect to
Certain Matters.  Subject to the provisions and limitations of Section 4.04,
the Owner Trustee shall not have the power, except upon the direction of the
Owner, to (a) remove the Administrator pursuant to Section 8 of the
Administration Agreement, (b) appoint a successor Administrator pursuant
to Section 8 of the Administration Agreement, (c) except as expressly
provided in the Transaction Documents, sell the Contracts or other Trust Assets
after the termination of the Indenture, (d) initiate any claim, suit or
proceeding by the Trust or compromise any claim, suit or proceeding brought by
or against the Trust, (e) authorize the merger or consolidation of the
Trust with or into any other statutory trust or entity (other than in
accordance with Section 3.10 of the Indenture) or (f) amend the
Certificate of Trust.  The Owner Trustee
shall take the actions referred to in the preceding sentence only upon written
instructions assigned by the Owner.

 

Section 4.03.                                Action by Owner with Respect to
Bankruptcy.  The Owner Trustee shall not have the power to
commence a voluntary proceeding in a bankruptcy relating to the Trust without
the prior approval of Owner and the delivery to the Owner Trustee by such Owner
of a certificate certifying that such Owner reasonably believes that the Trust
is insolvent.

 

Section 4.04.                                Restrictions on Owner’s Power. 
The Owner shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any
obligation of the Trust or the Owner Trustee under this Agreement or any of the
Transaction Documents or would be contrary to the purpose of this Trust as set
forth in Section 2.03, nor shall the Owner Trustee be obligated to follow
any such direction, if given.

 

ARTICLE FIVE

APPLICATION OF TRUST FUNDS;

CERTAIN DUTIES

 

Section 5.01.                                Application of Trust Funds.

 

(a)           On each Distribution Date, the Paying
Agent will distribute to the Certificateholder amounts received pursuant to Section 7.05
of the Sale and Servicing Agreement with respect to such Distribution Date.

 

11

 

(b)           On each Distribution Date, the Paying
Agent shall send to the Certificateholder the statement or statements provided
to the Owner Trustee by the Servicer pursuant to Section 9.01 of the Sale
and Servicing Agreement with respect to such Distribution Date.

 

(c)           In the event that any withholding tax
is imposed on the Trust’s payment (or allocation of income) to the
Certificateholder, such tax shall reduce the amount otherwise distributable to
the Certificateholder  in accordance with
this Section.  The Paying Agent is hereby
authorized and directed to retain from amounts otherwise distributable to the
Owner sufficient funds for the payment of any tax that is legally owed by the
Trust (but such authorization shall not prevent the Owner Trustee from
contesting any such tax in appropriate proceedings, and withholding payment of
such tax, if permitted by law, pending the outcome of such proceedings).  The amount of any withholding tax imposed
with respect to the Certificateholder shall be treated as cash distributed to
such Certificateholder at the time it is withheld by the Trust and remitted to
the appropriate taxing authority.  If
there is a possibility that withholding tax is payable with respect to a
distribution, the Paying Agent may in its sole discretion withhold such amounts
in accordance with the paragraph (c).

 

Section 5.02.                                Method of Payment. 
Subject to Section 9.01(c) respecting the final payment upon
retirement of the Trust Certificate, distributions required to be made to the
Certificateholder of record on the related Record Date shall be made by check
mailed to such Certificateholder at the address of such Holder appearing in the
Certificate Register.

 

Section 5.03.                                Accounting and Reports to the
Certificateholder, Owner, the Internal Revenue Service and Others. 
The Administrator shall (a) maintain (or cause to be maintained)
the books of the Trust on a calendar year basis and the accrual method of
accounting, (b) deliver to the Owner, as may be required by the Code and
applicable Treasury Regulations, such information as may be required to enable
the Owner to prepare its federal and state income tax returns, (c) file
such tax returns relating to the Trust and make such elections as from time to
time may be required or appropriate under any applicable state or federal
statute or any rule or regulation thereunder so as to maintain the federal
income tax treatment for the Trust as set forth in Section 2.11, (d) cause
such tax returns to be signed in the manner required by law and (e) collect
or cause to be collected any withholding tax as described in and in accordance
with Section 5.01(c) with respect to income or distributions to
Owner.  The Owner Trustee shall elect
under Section 1278 of the Code to include in income currently any market
discount that accrues with respect to the Contracts.  If applicable, the Owner Trustee shall not
make the election provided under Section 754 or Section 761 of the
Code.

 

Section 5.04.                                Signature on Returns; Tax Matters
Partner.

 

(a)           The Trust Depositor shall sign on
behalf of the Trust the tax returns of the Trust.

 

(b)           If subchapter K of the Code should be
applicable to the Trust, the Certificateholder shall be designated the “tax matters partner” of the Trust pursuant to Section 6231(a)(7)(A) of
the Code and applicable Treasury Regulations.

 

12

 

ARTICLE SIX

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

Section 6.01.                                General Authority. 
Subject to the provisions and limitations of Sections 2.03 and 2.06, the
Owner Trustee is authorized and directed to execute and deliver the Transaction
Documents to which the Trust is to be a party and each certificate or other
document attached as an exhibit to or contemplated by the Transaction Documents
to which the Trust is to be a party and any amendment or other agreement, as
evidenced conclusively by the Owner Trustee’s execution thereof.  In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required
of the Trust pursuant to the Transaction Documents.  The Owner Trustee is further authorized from
time to time to take such action as the Administrator recommends with respect
to the Transaction Documents.

 

Section 6.02.                         General Duties. 
Subject to the provisions and limitations of Sections 2.03 and 2.06, it
shall be the duty of the Owner Trustee to discharge (or cause to be discharged
through the Administrator) all of its responsibilities pursuant to the terms of
this Agreement and the Transaction Documents to which the Trust is a party and
to administer the Trust in the interest of the Owner, subject to the
Transaction Documents and in accordance with the provisions of this
Agreement.  Without limiting the
foregoing, the Owner Trustee shall on behalf of the Trust file and prove any
claim or claims that may exist against Harley-Davidson Credit in connection
with any claims paying procedure as part of an insolvency or receivership
proceeding involving Harley-Davidson Credit. 
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the Transaction
Documents to the extent the Administrator has agreed in the Administration
Agreement to perform any act or to discharge any duty of the Owner Trustee
hereunder or under any Transaction Document, and the Owner Trustee shall not be
held liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement.

 

Section 6.03.                                Action Upon Instruction.

 

(a)           Subject to Article Four, in
accordance with the terms of the Transaction Documents the Owner may by written
instruction direct the Owner Trustee in the management of the Trust.

 

(b)           The Owner Trustee shall not be
required to take any action hereunder or under any other Transaction Document
if the Owner Trustee shall have reasonably determined, or shall have been
advised by counsel, that such action is likely to result in liability on the
part of the Owner Trustee or is contrary to the terms hereof or of any other
Transaction Document or is otherwise contrary to law.

 

(c)           Whenever the Owner Trustee is unable
to decide between alternative courses of action permitted or required by the
terms of this Agreement or under any other Transaction Document, the Owner Trustee
shall promptly give notice (in such form as shall be appropriate under the
circumstances) to the Owner requesting instruction as to the course of action
to be adopted, and to the extent the Owner Trustee acts in good faith in
accordance with any written instruction of the Owner received, the Owner
Trustee shall not be liable on account of such action to any Person.  If the Owner Trustee shall not have received
appropriate instruction within ten days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be
necessary under the 

 

13

 

circumstances) it may, but shall be under no duty to,
take or refrain from taking such action not inconsistent with this Agreement
and the other Transaction Documents, as it shall deem to be in the best
interests of the Owner, and shall have no liability to any Person for such
action or inaction.

 

(d)           In the event that the Owner Trustee
is unsure as to the applicability of any provision of this Agreement or any
other Transaction Document or any such provision is ambiguous as to its
application, or is, or appears to be, in conflict with any other applicable
provision, or in the event that this Agreement permits any determination by the
Owner Trustee or is silent or is incomplete as to the course of action that the
Owner Trustee is required to take with respect to a particular set of facts,
the Owner Trustee may give notice (in such form as shall be appropriate under
the circumstances) to the Owner requesting instruction and, to the extent that
the Owner Trustee acts or refrains from acting in good faith in accordance with
any such instruction received, the Owner Trustee shall not be liable, on
account of such action or inaction, to any Person.  If the Owner Trustee shall not have received
appropriate instruction within ten days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action not inconsistent with this Agreement or the other
Transaction Documents, as it shall deem to be in the best interests of the
Owner, and shall have no liability to any Person for such action or inaction.

 

Section 6.04.                                No Duties Except as Specified in
this Agreement or in Instructions.  The Owner
Trustee shall not have any duty or obligation to manage, make any payment with
respect to, register, record, sell, dispose of or otherwise deal with the Trust
Estate, or to otherwise take or refrain from taking any action under, or in
connection with, any document contemplated hereby to which the Owner Trustee is
a party, except as expressly provided by the terms of this Agreement or any
document or written instruction received by the Owner Trustee pursuant to Section 6.03;
and no implied duties or obligations shall be read into this Agreement or any
other Transaction Document against the Owner Trustee.  The Owner Trustee shall have no
responsibility for filing any financing or continuation statement in any public
office at any time or to otherwise perfect or maintain the perfection of any
security interest or lien granted to it hereunder or to prepare or file any
Commission filing for the Trust or to record this Agreement or any other
Transaction Document.  The Owner Trustee
nevertheless agrees that it will, at its own cost and expense, promptly take
all action as may be necessary to discharge any liens on any part of the Trust
Estate that result from actions by, or claims against, the Owner Trustee that
are not related to the ownership or the administration of the Trust Estate.

 

Section 6.05.                                No Action Except Under Specified
Documents or Instructions.  The Owner Trustee shall not
manage, control, use, sell, dispose of or otherwise deal with any part of the
Trust Estate except (i) in accordance with the powers granted to and the
authority conferred upon the Owner Trustee pursuant to this Agreement, (ii) in
accordance with the other Transaction Documents and (iii) in accordance
with any document or instruction delivered to the Owner Trustee pursuant to Section 6.03.

 

Section 6.06.                                Restrictions. 
The Owner Trustee shall not take any action (i) that is
inconsistent with the purposes of the Trust set forth in Section 2.03 or (ii) that,
to the actual knowledge of the Owner Trustee, would result in the Trust’s
becoming taxable as a corporation for federal or state income tax
purposes.  The Owner shall not direct the
Owner Trustee to take actions that would violate the provisions of this
Section.

 

14

 

Section 6.07.                         Pennsylvania Motor Vehicle Sales
Finance Act Licenses.  The Owner Trustee shall use its best
efforts to maintain the effectiveness of all licenses required under the
Pennsylvania Motor Vehicle Sales Finance Act in connection with the
transactions contemplated by the Transaction Documents until the lien and
security interest of the Indenture shall no longer be in effect in accordance
with its terms.

 

ARTICLE SEVEN

CONCERNING THE OWNER TRUSTEE

 

Section 7.01.                                Acceptance of Trusts and Duties. 
The Owner Trustee accepts the trusts hereby created and agrees to
perform its duties hereunder with respect to such trusts but only upon the
terms of this Agreement.  The Owner
Trustee also agrees to disburse all moneys actually received by it constituting
part of the Trust Estate upon the terms of the Transaction Documents and this
Agreement.  The Owner Trustee shall not
be answerable or accountable hereunder or under any other Transaction Document
under any circumstances, except (i) for its own willful misconduct or
negligence or (ii) in the case of the inaccuracy of any representation or
warranty contained in Section 7.03 expressly made by the Owner
Trustee.  In particular, but not by way
of limitation (and subject to the exceptions set forth in the preceding
sentence):

 

(a)           the Owner Trustee shall not be liable
for any error of judgment made by a responsible officer of the Owner Trustee;

 

(b)           the Owner Trustee shall not be liable
with respect to any action taken or omitted to be taken by it in accordance
with the instructions of the Administrator or any Owner;

 

(c)           no provision of this Agreement or any
other Transaction Document shall require the Owner Trustee to expend or risk
funds or otherwise incur any financial liability in the performance of any of
its rights or powers hereunder or under any Transaction Document if the Owner
Trustee shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured or provided to it;

 

(d)           under no circumstances shall the
Owner Trustee be liable for indebtedness evidenced by or arising under any of
the Transaction Documents, including the principal of and interest on the
Notes;

 

(e)           the Owner Trustee shall not be
responsible for or in respect of the validity or sufficiency of this Agreement
or for the due execution hereof by the Trust Depositor or for the form,
character, genuineness, sufficiency, value or validity of any of the Trust
Estate, or for or in respect of the validity or sufficiency of the Transaction
Documents, other than the certificate of authentication on the Trust
Certificate, and the Owner Trustee shall in no event assume or incur any liability,
duty, or obligation to any Noteholder, the Swap Counterparty or to any Owner,
other than as expressly provided for herein or expressly agreed to in the
Transaction Documents;

 

(f)            the Owner Trustee shall not be
liable for the default or misconduct of the Administrator, the Trust Depositor,
the Indenture Trustee or the Servicer under any of the Transaction 

 

15

 

Documents or otherwise and the Owner Trustee shall
have no obligation or liability to perform the obligations of the Trust under
this Agreement or the other Transaction Documents that are required to be
performed by the Administrator under the Administration Agreement, the
Indenture Trustee under the Indenture, or the Servicer or the Trust Depositor
under the Sale and Servicing Agreement; and

 

(g)           the Owner Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by the
Agreement, or to institute, conduct or defend any litigation under this
Agreement or otherwise or in relation to this Agreement or any other
Transaction Document, at the request, order or direction of the Owner, unless
the Owner has offered to the Owner Trustee security or indemnity satisfactory
to it against the costs, expenses and liabilities that may be incurred by the
Owner Trustee therein or thereby.  The
right of the Owner Trustee to perform any discretionary act enumerated in this
Agreement or in any other Transaction Document shall not be construed as a duty,
and the Owner Trustee shall not be answerable for other than its negligence or
willful misconduct in the performance of any such act.

 

Section 7.02.                                Furnishing of Documents. 
The Owner Trustee shall furnish to the Owner promptly upon receipt of a
written request therefor, duplicates or copies of all reports, notices,
requests, demands, certificates, financial statements and any other instruments
furnished to the Owner Trustee under the Transaction Documents.

 

Section 7.03.        Representations and Warranties. 
The Owner Trustee hereby represents and warrants to the Trust Depositor
and the Owner that:

 

(a)           It is a banking corporation duly
organized and validly existing in good standing under the laws of the State of
Delaware.  It has all requisite corporate
power and authority to execute, deliver and perform its obligations under this
Agreement.

 

(b)           It has taken all corporate action
necessary to authorize the execution and delivery by it of this Agreement, and
this Agreement will be executed and delivered by one of its officers who is
duly authorized to execute and deliver this Agreement on its behalf.

 

(c)           Neither the execution nor the
delivery by it of this Agreement, nor the consummation by it of the
transactions contemplated hereby nor compliance by it with any of the terms or
provisions hereof will contravene any federal or Delaware law, governmental rule or
regulation governing the banking or trust powers of the Owner Trustee or any
judgment or order binding on it, or constitute any default under its charter
documents or bylaws or any indenture, mortgage, contract, agreement or
instrument to which it is a party or by which any of its properties may be
bound or result in the creation or imposition of any lien, charge or
encumbrance on the Trust Estate resulting from actions by or claims against the
Owner Trustee individually which are unrelated to this Agreement or the other
Transaction Documents.

 

Section 7.04.                                Reliance; Advice of Counsel.

 

(a)           The Owner Trustee shall incur no
liability to anyone in acting upon any signature, instrument, notice, resolution,
request, consent, order, certificate, report, opinion, bond or other document
or paper believed by it to be genuine and believed by it to be signed by the
proper party or parties.  The Owner
Trustee may accept a certified copy of a resolution of the board of directors
or other 

 

16

 

governing body of any corporate party as conclusive
evidence that such resolution has been duly adopted by such body and that the
same is in full force and effect.  As to
any fact or matter the method of determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer
or other authorized officers of the relevant party, as to such fact or matter
and such certificate shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance
thereon.

 

(b)           In the exercise or administration of
the trusts hereunder and in the performance of its duties and obligations under
this Agreement or the other Transaction Documents, the Owner Trustee (i) may
act directly or through its agents or attorneys pursuant to agreements entered
into by any of them, and the Owner Trustee shall not be liable for the conduct
or misconduct of such agents or attorneys as shall have been selected by the
Owner Trustee with reasonable care, and (ii) may consult with counsel,
accountants and other skilled persons to be selected with reasonable care and
employed by it.   The Owner Trustee shall
not be liable for anything done, suffered or omitted in good faith by it in
accordance with the written opinion or advice of any such counsel, accountants
or other such persons.

 

Section 7.05.        Not Acting in Individual Capacity. 
Except as provided in this Article Seven, in accepting the trusts
hereby created, Wilmington Trust Company acts solely as Owner Trustee hereunder
and not in its individual capacity, and all Persons having any claim against
the Owner Trustee by reason of the transactions contemplated by this Agreement
or any other Transaction Document shall look only to the Trust Estate for
payment or satisfaction thereof.

 

Section 7.06.        Owner Trustee Not Liable for Trust
Certificate, Notes or Contracts.  The recitals
contained herein and in the Trust Certificate (other than the signature and
countersignature of the Owner Trustee and the certificate of authentication on
the Trust Certificate) shall be taken as the statements of the Trust Depositor,
and the Owner Trustee assumes no responsibility for the correctness
thereof.  The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, any other
Transaction Document or the Trust Certificate (other than the signature and
countersignature of the Owner Trustee and the certificate of authentication on
the Trust Certificate) or the Notes, or of any Contract or related
documents.  The Owner Trustee shall at no
time have any responsibility or liability for or with respect to the legality,
validity and enforceability of any Contract, or the perfection and priority of
any security interest created by any Contract in any Motorcycle or the
maintenance of any such perfection and priority, or for or with respect to the
sufficiency of the Trust Estate or its ability to generate the payments to be
distributed to the Certificateholder under this Agreement or the Noteholders or
the Swap Counterparty under the Indenture or the Sale and Servicing Agreement,
including, without limitation, the existence, condition and ownership of any
Motorcycle; the existence and enforceability of any insurance thereon; the
existence and contents of any Contract on any computer or other record thereof;
the validity of the assignment of any Contract to the Trust or of any
intervening assignment; the completeness of any Contract; the performance or
enforcement of any Contract; the compliance by the Trust Depositor or the
Servicer with any warranty or representation made under any Transaction Document
or in any related document or the accuracy of any such warranty or
representation; or any action of the Administrator, the Indenture Trustee or
the Servicer or any subservicer taken in the name of the Owner Trustee.

 

Section 7.07.        Owner Trustee May Own Trust
Certificate and Notes.  The Owner Trustee in its
individual or any other capacity may become the owner or pledgee of the Trust
Certificate or Notes and 

 

17

 

may deal with the Trust Depositor, the Administrator,
the Indenture Trustee and the Servicer in banking transactions with the same
rights as it would have if it were not Owner Trustee.

 

ARTICLE EIGHT

COMPENSATION OF OWNER TRUSTEE

 

Section 8.01.                                Owner Trustee’s Fees and Expenses. 
The Owner Trustee shall receive as compensation for its services
hereunder such fees as have been separately agreed upon between the Owner
Trustee and the Trust Depositor. 
Additionally, the Owner Trustee shall be entitled to be reimbursed by
the Trust Depositor for its other reasonable expenses hereunder, including the
reasonable compensation, expenses and disbursements of such agents,
representatives, experts and counsel as the Owner Trustee may employ in
connection with the exercise and performance of its rights and its duties
hereunder.

 

Section 8.02.                                Indemnification. 
The Trust Depositor shall be liable as primary obligor for, and shall
indemnify the Owner Trustee and its successors, assigns and servants
(collectively, the “Indemnified Parties”) from and
against, any and all liabilities, obligations, losses, damages, taxes, claims,
actions and suits, and any and all reasonable costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature
whatsoever (collectively, “Expenses”)
which may at any time be imposed on, incurred by or asserted against the Owner
Trustee or any Indemnified Party in any way relating to or arising out of this
Agreement, the other Transaction Documents, the Trust Estate, the
administration of the Trust Estate or the action or inaction of the Owner
Trustee hereunder, except only that the Trust Depositor shall not be liable for
or required to indemnify an Indemnified Party from and against Expenses arising
or resulting from any of the matters described in the third sentence of Section 7.01.  The indemnities contained in this Section shall
survive the resignation or termination of the Owner Trustee or the termination
of this Agreement.  In the event of any
claim, action or proceeding for which indemnity will be sought pursuant to this
Section, the Owner Trustee’s choice of legal counsel shall be subject to the
approval of the Trust Depositor, which approval shall not be unreasonably
withheld.

 

Section 8.03.                                Payments to the Owner Trustee. 
Any amounts paid to the Owner Trustee pursuant to this Article shall
be deemed not to be a part of the Trust Estate immediately after such payment.

 

ARTICLE NINE

TERMINATION OF TRUST AGREEMENT

 

Section 9.01.                                Termination of Trust Agreement.

 

(a)           This Agreement (other than Article Eight)
and the Trust shall terminate and be of no further force or effect upon the
earlier of (i) final distribution by the Owner Trustee of all moneys or
other property or proceeds of the Trust Estate in accordance with the terms of
the Indenture, the Sale and Servicing Agreement and Article Five and (ii) the
expiration of 21 years from the death of the survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.

 

18

 

James’s, living on the date hereof.  The bankruptcy, liquidation, dissolution,
death or incapacity of any Owner shall not (i) operate to terminate this
Agreement or the Trust, (ii) entitle such Owner’s legal representatives or
heirs to claim an accounting or to take any action or proceeding in any court
for a partition or winding up of all or any part of the Trust or Trust Estate
or (iii) otherwise affect the rights, obligations and liabilities of the
parties hereto.

 

(b)           Except as provided in Section 9.01(a),
neither the Trust Depositor nor any Holder shall be entitled to revoke or
terminate the Trust.

 

(c)           Notice of any termination of the
Trust, specifying the Distribution Date upon which the Certificateholder shall
surrender the Trust Certificate to the Paying Agent for payment of the final
distribution and cancellation, shall be given by the Owner Trustee by letter to
the Certificateholder mailed within five Business Days of receipt of notice of
such termination from the Servicer given pursuant to Section 10.01 of the
Sale and Servicing Agreement, stating (i) the Distribution Date upon or
with respect to which final payment of the Trust Certificate shall be made upon
presentation and surrender of the Trust Certificate at the office of the Paying
Agent therein designated, (ii) the amount of any such final payment and (iii) that
the Record Date otherwise applicable to such Distribution Date is not
applicable, payments being made only upon presentation and surrender of the
Trust Certificate at the office of the Paying Agent therein specified.  The Owner Trustee shall give such notice to
the Certificate Registrar (if other than the Owner Trustee) and the Paying
Agent at the time such notice is given to the Certificateholder.  Upon presentation and surrender of the Trust
Certificate, the Paying Agent shall cause to be distributed to the
Certificateholder amounts distributable on such Distribution Date pursuant to Section 5.01.

 

(d)           Upon the winding up of the Trust and
its termination, the Owner Trustee shall cause the Certificate of Trust to be
canceled by filing a certificate of cancellation with the Secretary of State in
accordance with the provisions of Section 3810 of the Statutory Trust
Statute.

 

ARTICLE TEN

 

SUCCESSOR OWNER
TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

Section 10.01.                         Eligibility Requirements for
Owner Trustee.  The Owner Trustee shall at all times be a
corporation satisfying the provisions of Section 3807(a) of the
Statutory Trust  Statute; authorized to
exercise corporate trust powers; and (a) having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
federal or state authorities; and having (or having a parent that has) a rating
of at least Baa3 by Moody’s; or (b) which the Rating Agencies have
otherwise indicated in writing is an entity acceptable to act as Owner Trustee
hereunder.  If such corporation shall
publish reports of condition at least annually pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. 
In case at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Owner Trustee shall resign
immediately in the manner and with the effect specified in Section 10.02.

 

 

19

 

Section 10.02.                         Resignation or Removal of Owner
Trustee.  The Owner Trustee may at any time resign and
be discharged from the trusts hereby created by giving written notice thereof
to the Administrator.  Upon receiving
such notice of resignation, the Administrator shall promptly appoint a
successor Owner Trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Owner Trustee and one copy to
the successor Owner Trustee.  If no
successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee may petition any court of competent jurisdiction for
the appointment of a successor Owner Trustee.

 

If at any time the Owner
Trustee shall cease to be eligible in accordance with the provisions of Section 10.01
and shall fail to resign after written request therefor by the Administrator,
or if at any time the Owner Trustee shall be legally unable to act, or shall be
adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its
property shall be appointed or any public officer shall take charge or control
of the Owner Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Administrator, may remove
the Owner Trustee.  If the Administrator
shall remove the Owner Trustee under the authority of the immediately preceding
sentence, the Administrator shall promptly appoint a successor Owner Trustee by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the outgoing Owner Trustee so removed and one copy to the
successor Owner Trustee, and shall pay all fees owed to the outgoing Owner
Trustee.

 

Any resignation or
removal of the Owner Trustee and appointment of a successor Owner Trustee
pursuant to any of the provisions of this Section shall not become
effective until acceptance of appointment by the successor Owner Trustee
pursuant  to Section 10.03 and
payment of all fees and expenses owed to the outgoing Owner Trustee.  The Administrator shall provide notice of
such resignation or removal of the Owner Trustee to each Rating Agency.

 

Section 10.03.                         Successor Owner Trustee. 
Any successor Owner Trustee appointed pursuant to Section 10.02
shall execute, acknowledge and deliver to the Administrator, and to its
predecessor Owner Trustee an instrument accepting such appointment under this
Agreement, and thereupon the resignation or removal of the predecessor Owner
Trustee shall become effective, and such successor Owner Trustee, without any
further act, deed or conveyance, shall become fully vested with all the rights,
powers, duties and obligations of its predecessor under this Agreement, with
like effect as if originally named as Owner Trustee.  The predecessor Owner Trustee shall upon
payment of its fees and expenses deliver to the successor Owner Trustee all
documents and statements and monies held by it under this Agreement; and the
Administrator and the predecessor Owner Trustee shall execute and deliver such
instruments and do such other things as may reasonably be required for fully
and certainly vesting and confirming in the successor Owner Trustee all such
rights, powers, duties and obligations.

 

No successor Owner
Trustee shall accept appointment as provided in this Section unless at the
time of such acceptance such successor Owner Trustee shall be eligible pursuant
to Section 10.01.

 

Upon acceptance of
appointment by a successor Owner Trustee pursuant to this Section, the Administrator
shall mail notice thereof to the Certificateholder, the Indenture Trustee, the
Noteholders, the Swap Counterparty and each Rating Agency.  If the Administrator shall fail to mail such
notice within ten days after acceptance of such appointment by the successor
Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed
at the expense of the Administrator.

 

20

 

Section 10.04.                         Merger or Consolidation of Owner
Trustee.  Any corporation into which the Owner Trustee
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Owner Trustee shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of the Owner Trustee, shall
be the successor of the Owner Trustee hereunder, without the execution or
filing of any instrument or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding; provided,
that such corporation shall be eligible pursuant to Section 10.01 and, provided, further, that the Owner Trustee shall mail notice
of such merger or consolidation to each Rating Agency.

 

Section 10.05.                         Appointment of Co-Trustee or
Separate Trustee.  Notwithstanding any other provisions of this
Agreement, at any time, for the purpose of meeting any legal requirements of
any jurisdiction in which any part of the Trust Estate or any financed
Motorcycle may at the time be located, the Administrator and the Owner Trustee
acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Administrator and
Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or as
separate trustee or separate trustees, of all or any part of the Trust Estate,
and to vest in such Person, in such capacity, such title to the Trust or any
part thereof and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Administrator and the Owner
Trustee may consider necessary or desirable. 
If the Administrator shall not have joined in such appointment within 15
days after the receipt by it of a request so to do, the Owner Trustee alone
shall have the power to make such appointment. 
No co-trustee or separate trustee under this Agreement shall be required
to meet the terms of eligibility as a successor Owner Trustee pursuant to Section 10.01
and no notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 10.03.

 

Each separate trustee and
co-trustee shall, to the extent permitted by law, be appointed and act subject
to the following provisions and conditions:

 

(a)           all
rights, powers, duties and obligations conferred or imposed upon the Owner
Trustee shall be conferred upon and exercised or performed by the Owner Trustee
and such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the
Owner Trustee joining in such act), except to the extent that under any law of
any jurisdiction in which any particular act or acts are to be performed, the
Owner Trustee shall be incompetent or unqualified to perform such act or acts,
in which event such rights, powers, duties and obligations (including the
holding of title to the Trust Estate or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Owner Trustee;

 

(b)           no
trustee under this Agreement shall be personally liable by reason of any act or
omission of any other trustee under this Agreement; and

 

(c)           the
Administrator and the Owner Trustee acting jointly may at any time accept the
resignation of or remove any separate trustee or co-trustee.

 

Any notice, request or
other writing given to the Owner Trustee shall be deemed to have been given to
each of the then separate trustees and co-trustees, as effectively as if given
to each of them.  Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article.  Each
separate trustee and co-trustee, upon its acceptance of the trusts 

 

21

 

conferred, shall
be vested with the estates or property specified in its instrument of
appointment, either jointly with the Owner Trustee or separately, as may be
provided therein, subject to all the provisions of this Agreement, specifically
including every provision of this Agreement relating to the conduct of,
affecting the liability of or affording protection to, the Owner Trustee.  Each such instrument shall be filed with the Owner
Trustee and a copy thereof given to the Administrator.

 

Any separate trustee or
co-trustee may at any time appoint the Owner Trustee as its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by
law, to do any lawful act under or in respect of this Agreement on its behalf
and in its name.  If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be exercised
by the Owner Trustee, to the extent permitted by law, without the appointment
of a new or successor co-trustee or separate trustee.

 

ARTICLE ELEVEN

MISCELLANEOUS

 

Section 11.01.                         Supplements and Amendments.

 

(a)           The Agreement may be amended by the
Trust Depositor, and the Owner Trustee, without the consent of any of the
Noteholders, the Swap Counerparty or the Certificateholder, to cure any
ambiguity, to correct or supplement any provisions in this Agreement or to add
any other provisions with respect to matters or questions arising under this
Agreement that shall not be inconsistent with the provisions of this Agreement; provided, however, that any such action shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect
the interests of any Noteholder, the Swap Counterparty or Certificateholder.

 

(b)           This Agreement may also be amended
from time to time by the Trust Depositor, and the Owner Trustee, 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 Noteholders,
the Swap Counterparty or the Certificateholder; provided,
however, that no such amendment shall increase or reduce in any
manner the amount of, or accelerate or delay the timing of, (i) collections
of payments on Contracts or distributions that shall be required to be made for
the benefit of the Noteholders, the Swap Counterparty or the Certificateholder,
or (ii) eliminate the Certificateholder consent or reduce the aforesaid
percentage of the Outstanding Amount of the Notes required to consent to any
such amendment, without the consent of the Holder of all outstanding Notes and
the Trust Certificate.

 

(c)           Prior to the execution of any such
amendment or consent, the Trust Depositor shall furnish written notification of
the substance of such amendment or consent, together with a copy thereof, to
the Indenture Trustee, the Administrator and each Rating Agency.

 

(d)           Promptly after the execution of any
such amendment or consent, the Owner Trustee shall furnish written notification
of the substance of such amendment or consent to each Certificateholder.  It shall not be necessary for the consent of
any Certificateholder, the Swap 

 

22

 

Counterparty, the Noteholders or the Indenture Trustee
pursuant to this Section to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve
the substance thereof.  The manner of
obtaining such consents (and any other consents of the Certificateholder
provided for in this Agreement or in any other Transaction Document) and of
evidencing the authorization of the execution thereof by the Certificateholder
shall be subject to such reasonable requirements as the Owner Trustee may
prescribe.

 

(e)           Promptly after the execution of any
amendment to the Certificate of Trust, the Owner Trustee shall cause the filing
of such amendment with the Secretary of State.

 

(f)            Prior to the execution of any
amendment to this Agreement or the Certificate of Trust, the Owner Trustee
shall be entitled to receive and rely upon an Opinion of Counsel stating that
the execution of such amendment is authorized or permitted by this Agreement.  The Owner Trustee may, but shall not be
obligated to, enter into any such amendment that affects the Owner Trustee’s
own rights, duties or immunities under this Agreement or otherwise.

 

Section 11.02.                         No Legal Title to Trust Estate in
Owner.  The Owner shall not have legal title to any
part of the Trust Estate.  The Owner
shall be entitled to receive distributions with respect to their undivided
ownership interest herein only in accordance with Articles Five and Nine.  No transfer, by operation of law or
otherwise, of any right, title or interest of the Owner to and in their
ownership interest in the Trust Estate shall operate to terminate this
Agreement or the trusts hereunder or entitle any transferee to an accounting or
to the transfer to it of legal title to any part of the Trust Estate.

 

Section 11.03.                         Limitations on Rights of Others. 
Except for Section 2.07, the provisions of this Agreement are
solely for the benefit of the Owner Trustee, the Trust Depositor, the Owner,
the Administrator and, to the extent expressly provided herein, the Indenture
Trustee, the Swap Counterparty and the Noteholders, and nothing in this
Agreement (other than Section 2.07), whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

 

Section 11.04.                         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 11.05.                         Severability of Provisions. 
If any one or more of the covenants, agreements, provisions, or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, 

 

23

 

agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions
of this Agreement or of the Trust Certificate or the rights of the Holder  thereof.

 

Section 11.06.                         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
instrument.

 

Section 11.07.                         Successors and Assigns. 
All covenants and agreements contained herein shall be binding upon, and
inure to the benefit of, each of the Trust Depositor, and the Owner Trustee and
their respective successors and permitted assigns and each Owner and its
successors and permitted assigns, all as herein provided.  Any request, notice, direction, consent,
waiver or other instrument or action by an Owner shall bind the successors and
assigns of such Owner.

 

Section 11.08.                         Covenants of the Trust Depositor. 
In the event that any litigation with claims in excess of $1,000,000 to
which the Trust Depositor is a party which shall be reasonably likely to result
in a material judgment against the Trust Depositor that the Trust Depositor
will not be able to satisfy shall be commenced, during the period beginning
immediately following the commencement of such litigation and continuing until
such litigation is dismissed or otherwise terminated (and, if such litigation has
resulted in a final judgment against the Trust Depositor, such judgment has
been satisfied), the Trust Depositor shall not pay any dividend to the
Servicer, or make any distribution on or in respect of its capital stock to the
Servicer, or repay the principal amount of any indebtedness of the Trust
Depositor held by the Servicer, unless (i) after giving effect to such
payment, distribution or repayment, the Trust Depositor’s liquid assets shall
not be less than the amount of actual damages claimed in such litigation or (ii) the
Rating Agencies shall not downgrade the then existing rating on the Certificate
with respect to any such payment, distribution or repayment.

 

Section 11.09.                         No Petition.

 

(a)           The Trust Depositor will not at any
time institute against the Trust any bankruptcy proceedings under any United
States federal or state bankruptcy or similar law in connection with any
obligations relating to the Trust Certificate, the Notes, this Agreement or any
of the other Transaction Documents.

 

(b)           The Owner Trustee, by entering into
this Agreement, each Certificateholder, by accepting a Trust Certificate, and
the Indenture Trustee, the Swap Counterparty and each Noteholder, by accepting
the benefits of this Agreement, hereby covenant and agree that they will not at
any time institute against the Trust Depositor or the Trust, or join in any
institution against the Trust Depositor, or the Trust of, any bankruptcy
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Trust Certificate, the
Notes, this Agreement or any of the other Transaction Documents.

 

Section 11.10.                         No Recourse. 
The Certificateholder by accepting the Trust Certificate acknowledges
that such Certificateholder’s Trust Certificate represents beneficial interests
in the Trust only and does not represent interests in or obligations of the
Trust Depositor, the Servicer, the Seller, the Administrator, the Owner
Trustee, the Indenture Trustee or any of the respective Affiliates (other than
the Trust) and no recourse may be had against such parties or their assets,
except as may be expressly set forth or contemplated in this Agreement, the
Trust Certificate or the other Transaction Documents.

 

24

 

Section 11.11.                         Headings. 
The headings of the various Articles and Sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

 

Section 11.12.                         Governing Law. 
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, 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 11.13.                         Trust Certificate Transfer
Restrictions.  The Trust Certificate may not be acquired by
or for the account of a Benefit Plan.  By
accepting and holding a Trust Certificate, the Holder thereof shall be deemed
to have represented and warranted that it is not a Benefit Plan and that it is
not acquiring and will not hold such Trust Certificate for the account of, or
with plan assets of, a Benefit Plan.

 

Section 11.14.                         Trust Depositor Payment
Obligation.  The Trust Depositor shall be responsible for
payment of the Administrator’s compensation pursuant to Section 3 of the
Administration Agreement and shall reimburse the Administrator for all expenses
and liabilities of the Administrator incurred thereunder.

 

[signature page follows]

 

25

 

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

 

	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING

  
	
   

  	
  CORP., as Trust
  Depositor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Perry A
  Glassgow

  
	
   

  	
  Printed Name: 

  	
  Perry A.
  Glassgow

  
	
   

  	
  Title: 

  	
  Vice President and
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ J.
  Christopher Murphy

  
	
   

  	
  Printed Name: 

  	
  J. Christopher
  Murphy

  
	
   

  	
  Title: 

  	
  Financial Services
  Officer

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page to Trust

Agreement

 

 

EXHIBIT A

 

FORM OF
CERTIFICATE OF TRUST OF

Harley-Davidson
Motorcycle Trust 2008-1

 

This Certificate of Trust
of Harley-Davidson Motorcycle Trust 2008-1 (the “Trust”),
dated                               ,
2008, is being duly executed and filed by Wilmington Trust Company, a Delaware
banking corporation, as Owner Trustee, to form a statutory trust under the
Delaware Statutory Trust Act (12 Del. Code, §
3801 et seq.).

 

1.             Name.  The name of the statutory trust formed hereby
is Harley-Davidson Motorcycle Trust 2008-1.

 

2.             Delaware Trustee.  The name and business address of the Owner
Trustee of the Trust in the State of Delaware is Wilmington Trust Company,
Rodney Square North, 1100 North Market Street, Wilmington, Delaware l9890.

 

IN WITNESS WHEREOF, the
undersigned, being the sole Owner Trustee of the Trust, has executed this
Certificate of Trust as of the date first above written.

 

 

	
   

  	
  WILMINGTON TRUST
  COMPANY

  
	
   

  	
  not in its individual
  capacity but solely as

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Printed Name: 

  	
   

  
	
   

  	
  Title: 

  	
   

  

 

 

 

EXHIBIT B

 

FORM OF TRUST
CERTIFICATE

 

THIS TRUST CERTIFICATE REPRESENTS THE BENEFICIAL
INTEREST IN THE TRUST (AS DEFINED BELOW) AND IS ENTITLED TO PAYMENTS AS
DESCRIBED IN THE SALE AND SERVICING AGREEMENT AND INDENTURE REFERRED TO HEREIN.

 

THIS TRUST CERTIFICATE DOES NOT REPRESENT AN
OBLIGATION OF OR AN INTEREST IN HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,
HARLEY-DAVIDSON CREDIT CORP. OR ANY AFFILIATE THEREOF, EXCEPT TO THE EXTENT SET
FORTH IN THE TRUST AGREEMENT.  THIS TRUST
CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY
STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR PLEDGED UNLESS
THE CONDITIONS SET FORTH IN SECTIONS 3.01, 3.04 AND 11.13 OF THE TRUST
AGREEMENT HAVE BEEN COMPLIED WITH.

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2008-1 CERTIFICATE

 

	
  NO.                                              

  	
   

  	
  Initial Trust
  Certificate

  
	
   

  	
   

  	
  Fractional Interest
  100%

  

 

 

THIS CERTIFIES THAT
Harley-Davidson Customer Funding Corp. is the registered owner of  100% of the non-assessable, fully-paid,
fractional undivided beneficial interest in the Harley-Davidson Motorcycle
Trust 2008-1 (the “Trust”) formed by
Harley-Davidson Customer Funding Corp., a Nevada corporation (the “Trust Depositor”).

 

The Trust was created
pursuant to a Trust Agreement, dated as of January 1, 2008 (as amended and
supplemented from time to time, the “Trust Agreement”),
between the Trust Depositor, and Wilmington Trust Company, as owner trustee
(the “Owner Trustee”), a summary of certain
of the pertinent provisions of which is set forth below.  To the extent not otherwise defined herein,
the capitalized terms used herein have the meanings assigned to them in (i) the
Trust Agreement, (ii) the Sale and Servicing Agreement, dated as of February 15,
2008 (the “Sale and Servicing Agreement”), among
the Trust, the Trust Depositor, Harley-Davidson Credit Corp. (“Harley-Davidson Credit”), as Servicer (in such capacity,
the “Servicer”) and The Bank of New York
Trust Company, N.A., as Indenture Trustee (the “Indenture
Trustee”) or (iii) the Indenture, dated as of February 15,
2008 (the “Indenture”), between the Trust and the
Indenture Trustee.

 

This Trust Certificate is
the duly authorized Trust Certificate designated as “Harley-Davidson
Motorcycle Trust 2008-1 Certificate”  (the “Trust Certificate”).  Issued under the Indenture are six classes of
notes designated as “3.1713% Motorcycle
Contract Backed Notes, Class A-1”, “Floating Rate Motorcycle Contract
Backed Notes, Class A-2”, “4.25% Motorcycle Contract Backed Notes, Class A-3a”,
“Floating Rate Motorcycle Contract Backed Notes, Class A-3b”,”4.90%
Motorcycle Contract Backed Notes, Class A-4”, “6.34% Motorcycle Contract Backed Notes, Class B” and “7.55% Motorcycle Contract Backed Notes, Class C” (collectively,
the “Notes”).  This Trust Certificate is issued under and 

 

 

is subject to the
terms, provisions and conditions of the Trust Agreement, to which Trust
Agreement the Holder of this Trust Certificate by virtue of its acceptance
hereof assents and by which such Holder is bound.  The property of the Trust includes, among
other things, (i) all the right, title and interest of the Trust Depositor
in and to the Contracts listed on the List of Contracts delivered on the
Closing Date (including, without limitation, all security interests and all
rights to receive payments which are collected pursuant thereto after the
Cutoff Date, including any liquidation proceeds therefrom, but excluding any
rights to receive payments which were collected pursuant thereto on or prior to
the Cutoff Date), (ii) all rights of the Trust Depositor under any
physical damage or other individual insurance policy (and rights under a “forced placed” policy, if any), any debt insurance policy
or any debt cancellation agreement 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 (but not the obligations) of the Trust Depositor
under any related motorcycle dealer agreements between dealers (i.e., the
originators of such Contracts) and Harley-Davidson Credit, (vi) all rights
of the Trust Depositor in the Lockbox, the Lockbox Account and related Lockbox
Agreement to the extent they relate to such Contracts, (vii) all rights
(but not the obligations) of the Trust Depositor under the Transfer and Sale
Agreement, including but not limited to the Trust Depositor’s rights under Article V
thereof, (viii) the remittances, deposits and payments made into the Trust
Accounts from time to time and amounts in the Trust Accounts from time to time
(and any investments of such amounts), (ix) all rights of the Trust
Depositor to certain rebates of premiums and other amounts relating to
insurance policies, debt cancellation agreements, extended service contracts or
other repair agreements and other items financed under such Contracts and (x) all
proceeds and products of the foregoing.

 

Under the Trust
Agreement, there will be distributed on the fifteenth day of each month or if
such day is not a Business Day the next succeeding Business Day commencing March 17,
2008 (each, a “Distribution Date”) to the
person in whose name this Trust Certificate is registered as of the last
Business Day immediately preceding the calendar month in which such
Distribution Date occurs (each, a “Record Date”),
such Certificateholder’s fractional undivided beneficial interest in the amount
to be distributed to the Certificateholder on such Distribution Date.

 

The holder of this Trust
Certificate acknowledges and agrees that its rights to receive distributions in
respect of this Trust Certificate are subordinated to the rights of the
Noteholders and the Swap Counterparty to the extent described in the Sale and
Servicing Agreement and the Indenture.

 

It is the intention of
Harley-Davidson Credit, the Servicer, the Trust Depositor, Owner Trustee,
Indenture Trustee and the Certificateholder that the Trust be disregarded as a
separate entity pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii) as
in effect for periods after January 1, 1997.  The Trust Certificate constitutes the sole
equity interest in the Trust and must at all times be held by either the Trust
Depositor or its transferee as sole owner. 
The Trust Depositor agrees not to take any action inconsistent with such
intended federal income tax treatment. 
Because for federal income tax purposes the Trust will be disregarded as
a separate entity, Trust items of income, gain, loss and deduction for any
month as determined for federal income tax purposes shall be allocated entirely
to the Trust Depositor (or subsequent purchaser of the Trust Certificate) as
the sole Certificateholder.

 

Each Certificateholder,
by its acceptance of a Trust Certificate or 
beneficial interest in a Trust Certificate, covenants and agrees that
such Certificateholder will not at any time institute against the Trust or the
Trust Depositor, or join in any institution against the Trust or the Trust
Depositor, Harley-Davidson 

 

 

Credit or the
Servicer any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Trust Certificate, the Notes, the Trust Agreement or any of the other
Transaction Documents.

 

Distributions on this
Trust Certificate will be made as provided in the Sale and Servicing Agreement
by wire transfer or check mailed to the Certificateholder of record in the
Certificate Register without the presentation or surrender of this Trust
Certificate or the making of any notation hereon.  Except as otherwise provided in the Trust
Agreement and notwithstanding the above, the final distribution on this Trust
Certificate will be made after due notice by the Owner Trustee of the pendency
of such distribution and only upon presentation and surrender of this Trust
Certificate at the office or agency maintained for that purpose by the Owner
Trustee in the City of Wilmington, Delaware.

 

Reference is hereby made
to the further provisions of this Trust Certificate set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

Unless the certificate of
authentication hereon shall have been executed by an authorized officer of the
Owner Trustee, by manual signature, this Trust Certificate shall not entitle
the holder hereof to any benefit under the Trust Agreement or any other
Transaction Document or be valid for any purpose.

 

THIS TRUST CERTIFICATE
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
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.

 

[REVERSE OF
CERTIFICATE]

 

 

The Trust Certificate
does not represent an obligation of, or an interest in the Trust Depositor,
Harley-Davidson Credit, as the Seller or Servicer, the Owner Trustee, the
Indenture Trustee or any of their respective Affiliates (other than the Trust)
and no recourse may be had against such parties or their assets, except as
expressly set forth or contemplated herein or in the Trust Agreement or the
other Transaction Documents.  In
addition, this Trust Certificate is not guaranteed by any governmental agency
or instrumentality and is limited in right of payment to certain collections
and recoveries with respect to the Contracts and certain other amounts, in each
case as more specifically set forth herein and in the Sale and Servicing
Agreement.  A copy of each of the Sale
and Servicing Agreement and the Trust Agreement may be examined by any
Certificateholder upon written request during normal business hours at the
principal office of the Trust Depositor and at such other places, if any,
designated by the Trust Depositor.

 

The Trust Agreement
permits, with certain exceptions therein provided, the amendment thereof and
the modification of the rights and obligations of the Trust Depositor and the
rights of the Certificateholder under the Trust Agreement at any time by the
Trust Depositor and the Owner Trustee with the consent of the Holder of the
Trust Certificate and the Modified Required Holders.  Any such consent by the Holder of this Trust
Certificate shall be conclusive and binding on such Holder and on all future
Holders of this Trust Certificate and of any Trust Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent is made upon this Trust Certificate.  The Trust Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holder of any of the Trust Certificate.

 

As provided in the Trust
Agreement and subject to certain limitations therein set forth, the transfer of
this Trust Certificate is registerable in the Certificate Register upon
surrender of this Trust Certificate for registration of transfer at the offices
or agencies of the Certificate Registrar, accompanied by a written instrument
of transfer in form satisfactory to the Owner Trustee and the Certificate
Registrar duly executed by the Holder hereof or such Holder’s attorney duly
authorized in writing, and thereupon the new Trust Certificate of authorized
denominations evidencing the same aggregate interest in the Trust will be
issued to the designated transferee.  The
initial Certificate Registrar appointed under the Trust Agreement is the Owner
Trustee.

 

The Owner Trustee, the
Certificate Registrar and any of their respective agents may treat the Person
in whose name this Trust Certificate is registered as the owner hereof for all
purposes, and none of the Owner Trustee, the Certificate Registrar or any such
agent shall be affected by any notice to the contrary.

 

The obligations and
responsibilities created by the Trust Agreement and the Trust created thereby
shall terminate upon the payment to the Certificateholder of all amounts
required to be paid to it pursuant to the Trust Agreement and the Sale and
Servicing Agreement and the disposition of all property held as part of the
Trust Estate.  Harley-Davidson Credit may
at its option purchase the Trust Estate at a price specified in the Sale and
Servicing Agreement, and such purchase of the Contracts and other property of the
Trust will affect early retirement of the Trust Certificate; however, such
right of purchase is exercisable only as of any Distribution Date on which the
Pool Balance has declined to less than 10% of the Pool Balance on the Cutoff
Date.

 

 

 

 

The Trust Certificate may
not be acquired by a Benefit Plan.  The
Holder hereof, by accepting a beneficial interest in this Trust Certificate,
shall be deemed to have represented and warranted that it is not a Benefit Plan
and is not acquiring this Trust Certificate or an interest therein for the
account of, or with plan assets of, a Benefit Plan.

 

 

 

 

IN WITNESS WHEREOF, the
Owner Trustee, on behalf of the Trust and not in its individual capacity, has
caused this Trust Certificate to be duly executed.

 

	
  Dated:

  	
  Harley-Davidson
  Motorcycle Trust 2008-1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST
  COMPANY, not in its individual capacity but solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is the Trust
Certificate referred to in the within-mentioned Trust Agreement.

 

WILMINGTON TRUST COMPANY,

not in its individual
capacity but solely

as Owner Trustee

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

ASSIGNMENT

 

 

FOR VALUE RECEIVED
the undersigned hereby sells, assigns and transfers unto

 

PLEASE INSERT SOCIAL
SECURITY OR

OTHER IDENTIFYING NUMBER
OF ASSIGNEE

 

 

 

 

	
  (Please print or type name and address, including
  postal zip code, of assignee)

  
	
   

   

  
	
  the within Trust Certificate, and all rights
  thereunder, hereby irrevocably constituting and appointing

  
	
   

   

  
	
  to transfer said Trust Certificate on the books of
  the Certificate Registrar, with full power of substitution in the premises.

  

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  

 

 

 

	
   

  	
   

  	
   

  
	
  NOTICE:
  Signature(s) must be guaranteed by an eligible guarantor institution.

  	
   

  	
  NOTICE: The signature
  to this assignment must correspond with the name of the registered owner as
  it appears on the face of the within Trust Certificate in every particular,
  without alteration or enlargement or any change whatever.

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