Document:

Exhibit
4.2

 

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2005-2,

as Issuer,

 

 

and

 

 

THE BANK OF NEW
YORK TRUST COMPANY, N.A.,

not in its
individual capacity but solely in its capacity

as Indenture
Trustee

 

 

INDENTURE

 

Dated as of May 1,
2005

 

 

$487,000,000          3.79% 
Harley-Davidson Motorcycle Contract Backed Notes, Class A-1

 

$251,180,000          4.07% 
Harley-Davidson Motorcycle Contract Backed Notes, Class A-2

 

$36,820,000            4.27%  Harley-Davidson Motorcycle Contract Backed
Notes, Class B

 

 

 

CROSS-REFERENCE
TABLE

 

	
  TIA

  	
   

  	
  Indenture

  
	
  Section

  	
   

  	
  Section

  
	
  310(a)(1)

  	
   

  	
  6.11

  
	
  (a)(2)

  	
   

  	
  6.11

  
	
  (a)(3)

  	
   

  	
  6.10

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  6.11

  
	
  (b)

  	
   

  	
  6.08; 6.11; 11.04

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
  6.13

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  7.01; 7.02

  
	
  (b)

  	
   

  	
  7.02

  
	
  (c)

  	
   

  	
  7.02

  
	
  313(a)

  	
   

  	
  7.04

  
	
  (b)

  	
   

  	
  7.04

  
	
  (c)

  	
   

  	
  7.04

  
	
  (d)

  	
   

  	
  7.04

  
	
  314(a)

  	
   

  	
  7.03

  
	
  (b)

  	
   

  	
  3.06

  
	
  (c)(1)

  	
   

  	
  2.02; 6.02; 11.01

  
	
  (c)(2)

  	
   

  	
  11.01

  
	
  (c)(3)

  	
   

  	
  11.01

  
	
  (d)

  	
   

  	
  11.01

  
	
  (e)

  	
   

  	
  11.01

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  6.01

  
	
  (b)

  	
   

  	
  6.05

  
	
  (c)

  	
   

  	
  6.01

  
	
  (d)

  	
   

  	
  5.12; 6.01

  
	
  (e)

  	
   

  	
  5.14

  
	
  316(a)(1)(A)

  	
   

  	
  5.12

  
	
  (a)(1)(B)

  	
   

  	
  5.02

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  5.08

  
	
  (c)

  	
   

  	
  N.A.

  
	
  317(a)

  	
   

  	
  5.03; 5.04

  
	
  (b)

  	
   

  	
  3.03

  
	
  318(a)

  	
   

  	
  11.18

  

 

*           N.A. means Not
Applicable

*           This Cross-Reference
Table shall not, for any purpose, be deemed to be a part of the Indenture.

 

i

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE

  	
  DEFINITIONS AND INCORPORATION BY
  REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  DEFINITIONS

  	
   

  
	
  SECTION 1.02.

  	
  INCORPORATION BY REFERENCE OF TRUST
  INDENTURE ACT

  	
   

  
	
  SECTION 1.03.

  	
  RULES OF CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  FORM

  	
   

  
	
  SECTION 2.02.

  	
  EXECUTION, AUTHENTICATION AND
  DELIVERY

  	
   

  
	
  SECTION 2.03.

  	
  TEMPORARY NOTES

  	
   

  
	
  SECTION 2.04.

  	
  REGISTRATION; REGISTRATION OF
  TRANSFER AND EXCHANGE

  	
   

  
	
  SECTION 2.05.

  	
  MUTILATED, DESTROYED, LOST OR STOLEN
  NOTES

  	
   

  
	
  SECTION 2.06.

  	
  PERSONS DEEMED OWNER

  	
   

  
	
  SECTION 2.07.

  	
  PAYMENT OF PRINCIPAL AND INTEREST;
  DEFAULTED INTEREST.

  	
   

  
	
  SECTION 2.08.

  	
  CANCELLATION

  	
   

  
	
  SECTION 2.09.

  	
  BOOK-ENTRY NOTES

  	
   

  
	
  SECTION 2.10.

  	
  NOTICES TO CLEARING AGENCY

  	
   

  
	
  SECTION 2.11.

  	
  DEFINITIVE NOTES

  	
   

  
	
  SECTION 2.12.

  	
  RELEASE OF COLLATERAL

  	
   

  
	
  SECTION 2.13.

  	
  TAX TREATMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  PAYMENT OF PRINCIPAL AND INTEREST

  	
   

  
	
  SECTION 3.02.

  	
  MAINTENANCE OF OFFICE OR AGENCY

  	
   

  
	
  SECTION 3.03.

  	
  MONEY FOR PAYMENTS TO BE HELD IN
  TRUST

  	
   

  
	
  SECTION 3.04.

  	
  EXISTENCE

  	
   

  
	
  SECTION 3.05.

  	
  PROTECTION OF COLLATERAL

  	
   

  
	
  SECTION 3.06.

  	
  OPINIONS AS TO COLLATERAL

  	
   

  
	
  SECTION 3.07.

  	
  PERFORMANCE OF OBLIGATIONS;
  SERVICING OF CONTRACTS

  	
   

  
	
  SECTION 3.08.

  	
  NEGATIVE COVENANTS

  	
   

  
	
  SECTION 3.09.

  	
  ANNUAL STATEMENT AS TO COMPLIANCE

  	
   

  
	
  SECTION 3.10.

  	
  ISSUER MAY CONSOLIDATE, ETC.
  ONLY ON CERTAIN TERMS

  	
   

  
	
  SECTION 3.11.

  	
  SUCCESSOR OR TRANSFEREE

  	
   

  
	
  SECTION 3.12.

  	
  NO OTHER BUSINESS

  	
   

  
	
  SECTION 3.13.

  	
  NO BORROWING

  	
   

  
	
  SECTION 3.14.

  	
  SERVICER’S OBLIGATIONS

  	
   

  
	
  SECTION 3.15.

  	
  GUARANTEES, LOANS ADVANCES AND OTHER
  LIABILITIES

  	
   

  
	
  SECTION 3.16.

  	
  CAPITAL EXPENDITURES

  	
   

  
	
  SECTION 3.17.

  	
  RESTRICTED PAYMENTS

  	
   

  
	
  SECTION 3.18.

  	
  NOTICE OF EVENTS OF DEFAULT

  	
   

  
	
  SECTION 3.19.

  	
  FURTHER INSTRUMENTS AND ACTS

  	
   

  
	
  SECTION 3.20.

  	
  COMPLIANCE WITH LAWS

  	
   

  
				

 

ii

 

	
  SECTION 3.21.

  	
  AMENDMENTS OF SALE AND SERVICING AGREEMENT
  AND TRUST AGREEMENT

  	
   

  
	
  SECTION 3.22.

  	
  REMOVAL OF ADMINISTRATOR

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  SATISFACTION AND DISCHARGE OF
  INDENTURE

  	
   

  
	
  SECTION 4.02.

  	
  APPLICATION OF TRUST MONEY

  	
   

  
	
  SECTION 4.03.

  	
  REPAYMENT OF MONEYS HELD BY PAYING
  AGENT

  	
   

  
	
  SECTION 4.04.

  	
  RELEASE OF COLLATERAL

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  EVENTS OF DEFAULT

  	
   

  
	
  SECTION 5.02.

  	
  RIGHTS UPON EVENT OF DEFAULT

  	
   

  
	
  SECTION 5.03.

  	
  COLLECTION OF INDEBTEDNESS AND SUITS
  FOR ENFORCEMENT BY INDENTURE TRUSTEE; AUTHORITY OF INDENTURE TRUSTEE

  	
   

  
	
  SECTION 5.04.

  	
  REMEDIES

  	
   

  
	
  SECTION 5.05.

  	
  OPTIONAL PRESERVATION OF THE
  CONTRACTS

  	
   

  
	
  SECTION 5.06.

  	
  PRIORITIES

  	
   

  
	
  SECTION 5.07.

  	
  LIMITATION OF SUITS

  	
   

  
	
  SECTION 5.08.

  	
  UNCONDITIONAL RIGHTS OF NOTEHOLDERS
  TO RECEIVE PRINCIPAL AND INTEREST

  	
   

  
	
  SECTION 5.09.

  	
  RESTORATION OF RIGHTS AND REMEDIES

  	
   

  
	
  SECTION 5.10.

  	
  RIGHTS AND REMEDIES CUMULATIVE

  	
   

  
	
  SECTION 5.11.

  	
  DELAY OR OMISSION NOT A WAIVER

  	
   

  
	
  SECTION 5.12.

  	
  CONTROL BY NOTEHOLDERS

  	
   

  
	
  SECTION 5.13.

  	
  WAIVER OF PAST DEFAULTS

  	
   

  
	
  SECTION 5.14.

  	
  UNDERTAKING FOR COSTS

  	
   

  
	
  SECTION 5.15.

  	
  WAIVER OF STAY OR EXTENSION LAWS

  	
   

  
	
  SECTION 5.16.

  	
  ACTION ON NOTES

  	
   

  
	
  SECTION 5.17.

  	
  PERFORMANCE AND ENFORCEMENT OF
  CERTAIN OBLIGATIONS.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
  THE INDENTURE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  DUTIES OF INDENTURE TRUSTEE

  	
   

  
	
  SECTION 6.02.

  	
  RIGHTS OF INDENTURE TRUSTEE

  	
   

  
	
  SECTION 6.03.

  	
  INDIVIDUAL RIGHTS OF INDENTURE
  TRUSTEE

  	
   

  
	
  SECTION 6.04.

  	
  INDENTURE TRUSTEE’S DISCLAIMER

  	
   

  
	
  SECTION 6.05.

  	
  NOTICE OF DEFAULTS

  	
   

  
	
  SECTION 6.06.

  	
  REPORTS BY INDENTURE TRUSTEE TO
  HOLDERS

  	
   

  
	
  SECTION 6.07.

  	
  COMPENSATION AND INDEMNITY

  	
   

  
	
  SECTION 6.08.

  	
  REPLACEMENT OF INDENTURE TRUSTEE

  	
   

  
	
  SECTION 6.09.

  	
  SUCCESSOR INDENTURE TRUSTEE BY
  MERGER

  	
   

  
	
  SECTION 6.10.

  	
  APPOINTMENT OF CO-INDENTURE TRUSTEE
  OR SEPARATE INDENTURE TRUSTEE

  	
   

  
	
  SECTION 6.11.

  	
  ELIGIBILITY

  	
   

  
	
  SECTION 6.12.

  	
  PENNSYLVANIA MOTOR VEHICLE SALES
  FINANCE ACT LICENSES

  	
   

  
	
  SECTION 6.13.

  	
  PREFERENTIAL COLLECTION OF CLAIMS
  AGAINST ISSUER

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  	
  NOTEHOLDERS’ LISTS AND REPORTS

  	
   

  
				

 

iii

 

	
  SECTION 7.01.

  	
  ISSUER TO FURNISH INDENTURE TRUSTEE
  NAMES AND ADDRESSES OF NOTEHOLDERS

  	
   

  
	
  SECTION 7.02.

  	
  PRESERVATION OF INFORMATION:
  COMMUNICATION TO NOTEHOLDERS

  	
   

  
	
  SECTION 7.03.

  	
  REPORTS BY ISSUER

  	
   

  
	
  SECTION 7.04.

  	
  REPORTS BY INDENTURE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
  ACCOUNTS, DISBURSEMENTS AND RELEASES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  COLLECTION OF MONEY

  	
   

  
	
  SECTION 8.02.

  	
  TRUST ACCOUNTS

  	
   

  
	
  SECTION 8.03.

  	
  GENERAL PROVISIONS REGARDING
  ACCOUNTS

  	
   

  
	
  SECTION 8.04.

  	
  RELEASE OF COLLATERAL

  	
   

  
	
  SECTION 8.05.

  	
  OPINION OF COUNSEL

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  	
  SUPPLEMENTAL INDENTURES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  SUPPLEMENTAL INDENTURES WITHOUT
  CONSENT OF NOTEHOLDERS

  	
   

  
	
  SECTION 9.02.

  	
  SUPPLEMENTAL INDENTURES WITH CONSENT
  OF NOTEHOLDERS

  	
   

  
	
  SECTION 9.03.

  	
  EXECUTION OF SUPPLEMENTAL INDENTURES

  	
   

  
	
  SECTION 9.04.

  	
  EFFECT OF SUPPLEMENTAL INDENTURE

  	
   

  
	
  SECTION 9.05.

  	
  CONFORMITY WITH TRUST INDENTURE ACT

  	
   

  
	
  SECTION 9.06.

  	
  REFERENCE IN NOTES TO SUPPLEMENTAL
  INDENTURES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
  REDEMPTION OF NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  REDEMPTION

  	
   

  
	
  SECTION 10.02.

  	
  FORM OF REDEMPTION NOTICE

  	
   

  
	
  SECTION 10.03.

  	
  NOTES PAYABLE ON REDEMPTION DATE

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  COMPLIANCE CERTIFICATES AND
  OPINIONS, ETC

  	
   

  
	
  SECTION 11.02.

  	
  FORM OF DOCUMENTS DELIVERED TO
  INDENTURE TRUSTEE

  	
   

  
	
  SECTION 11.03.

  	
  ACTS OF NOTEHOLDERS

  	
   

  
	
  SECTION 11.04.

  	
  NOTICES

  	
   

  
	
  SECTION 11.05.

  	
  NOTICES TO NOTEHOLDERS; WAIVER

  	
   

  
	
  SECTION 11.06.

  	
  ALTERNATE PAYMENT AND NOTICE
  PROVISIONS

  	
   

  
	
  SECTION 11.07.

  	
  EFFECT OF HEADINGS AND TABLE OF
  CONTENTS

  	
   

  
	
  SECTION 11.08.

  	
  SUCCESSORS AND ASSIGNS

  	
   

  
	
  SECTION 11.09.

  	
  SEPARABILITY

  	
   

  
	
  SECTION 11.10.

  	
  BENEFITS OF INDENTURE

  	
   

  
	
  SECTION 11.11.

  	
  LEGAL HOLIDAYS

  	
   

  
	
  SECTION 11.12.

  	
  GOVERNING LAW

  	
   

  
	
  SECTION 11.13.

  	
  COUNTERPARTS

  	
   

  
	
  SECTION 11.14.

  	
  RECORDING OF INDENTURE

  	
   

  
	
  SECTION 11.15.

  	
  TRUST OBLIGATION

  	
   

  
	
  SECTION 11.16.

  	
  NO PETITION

  	
   

  
	
  SECTION 11.17.

  	
  INSPECTION

  	
   

  
	
  SECTION 11.18.

  	
  CONFLICT WITH TRUST INDENTURE ACT

  	
   

  
	
  SECTION 11.19.

  	
  DISCLAIMER AND SUBORDINATION

  	
   

  
					

 

iv

 

	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  Exhibit A
  - Reserved

  	
   

  
	
  Exhibit B - Form of
  Class A-1 Note

  	
   

  
	
  Exhibit C - Form of
  Class A-2 Note

  	
   

  
	
  Exhibit D - Form of
  Class B Note

  	
   

  
	
  Exhibit E - Form of Assignment

  	
   

  
	
  Exhibit F - Form of Note
  Depository Agreement

  	
   

  

 

v

 

INDENTURE

 

Indenture, dated as of May 1,
2005 (this “Indenture”), between Harley-Davidson Motorcycle Trust 2005-2,
a Delaware statutory trust (the “Issuer”) and The Bank of New York Trust
Company, N.A., in its capacity as indenture trustee (the “Indenture Trustee”)
and not in its individual capacity.

 

Each party agrees as
follows for the benefit of the other parties and for the equal and ratable
benefit of the Holders of the Issuer’s 3.79% Harley-Davidson Motorcycle
Contract Backed Notes, Class A-1 (the “Class A-1 Notes”),
4.07% Harley-Davidson Motorcycle Contract Backed Notes, Class A-2
(the “Class A-2 Notes”) and 4.27% Harley-Davidson Motorcycle
Contract Backed Notes, Class B (the “Class B Notes”) and, together
with the Class A-1 Notes and the Class B Notes, the “Notes”):

 

GRANTING CLAUSE

 

The Issuer hereby grants,
transfers, assigns and otherwise conveys to the Indenture Trustee on the
Closing Date, on behalf of and for the benefit of the Holders of the Notes,
without recourse, all of the Issuer’s right, title and interest (exclusive of
the amount, if any, allocable to any rebatable insurance premium financed by
any Contract) in, to and under: (i) the Initial Contracts and Subsequent
Contracts secured by the Motorcycles (which Contracts shall be listed in the
List of Contracts and Subsequent List of Contracts); (ii) certain monies
due under the Initial Contracts and Subsequent Contracts after the Initial
Cutoff Date and Subsequent Cutoff Date, respectively, including, without
limitation, all payments of principal and interest with respect to any Motorcycles
to which a Contract relates received after the Initial Cutoff Date or
Subsequent Cutoff Date and all other proceeds received on or in respect of such
Contracts (other than payments of principal and interest due on or prior to the
Initial Cutoff Date or Subsequent Cutoff Date); (iii) security interests
in the Motorcycles; (iv) amounts on deposit in the Collection Account, the
Note Distribution Account, the Reserve Fund, the Pre-Funding Account and the
Interest Reserve Account, including all Eligible Investments therein and all
income from the investment of funds therein and all proceeds therefrom; (v) proceeds
from claims under certain insurance policies, debt insurance policies or debt
cancellation agreements in respect of individual Motorcycles or obligors under
the Contracts; (vi) its rights under the Sale and Servicing Agreement; (vii) the
protective security interest in certain of the above-described property granted
by the Trust Depositor in favor of the Issuer; (viii) all present and
future claims, demands, causes of and choses in action in respect of any or all
of the foregoing; (ix) all rights 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 payments on or under and all proceeds of every kind
and nature whatsoever in respect of any or all of the foregoing, including all
proceeds of the conversion, voluntary or involuntary, into cash of other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at

 

 

any time constitute all or part of or are included in the proceeds of
any of the foregoing (as each such defined term is defined in Section 1.01)
(collectively, the “Collateral”).

 

The foregoing Grant is
made in trust to secure the payment of principal of and interest on, and any
other amounts owing in respect of, the Notes, equally and ratably without
prejudice, priority or distinction, except for the subordination of the Class B
Notes provided herein and all other sums owing by the Issuer hereunder or under
any other Transaction Document, and to secure compliance with the provisions of
this Indenture, all as provided in this Indenture.

 

The Indenture Trustee, as
Indenture Trustee on behalf of the Holders of the Notes, acknowledges such
Grant, accepts the trust under this Indenture in accordance with the provisions
of this Indenture and agrees to perform its duties required in this Indenture
in accordance with its terms and the terms of the other Transaction Documents
to which it is a party.

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.        Definitions.

 

(a)           Except
as otherwise specified herein or as the context may otherwise require, the
following terms have the respective meanings set forth below for all purposes
of this Indenture.

 

“Act” shall have
the meaning specified in Section 11.03(a).

 

“Administration Agreement” means
the Administration Agreement, dated as of the date hereof, among the
Administrator, the Issuer, the Trust Depositor and the Indenture Trustee.

 

“Administrator” means
Harley-Davidson Credit Corp. or any successor Administrator under the
Administration Agreement.

 

“Affiliate” means, with respect
to any specified Person, any other Person controlling or controlled by or under
common control with such specified Person. 
For the purposes of this definition, “control” when
used with respect to any Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Authorized Officer” means, with
respect to the Issuer, any officer of the Owner Trustee who is authorized to
act for the Owner Trustee in matters relating to the Issuer and who is
identified on the list of Authorized Officers delivered by the Owner Trustee to
the Indenture Trustee on the Closing Date (as such list may be modified or
supplemented from time to time thereafter) and, so long as the Administration
Agreement is in effect, any Vice

 

2

 

President or more senior officer of the Administrator
who is authorized to act for the Administrator in matters relating to the
Issuer and to be acted upon by the Administrator pursuant to the Administration
Agreement and who is identified on the list of Authorized Officers delivered by
the Administrator to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter).

 

“Book Entry Notes” means a
beneficial interest in the Notes, ownership and transfers of which shall be
made through book entries by a Clearing Agency as described in Section 2.09.

 

“Business Day” means any day
other than a Saturday, Sunday or other day on which banking institutions in the
city of Chicago, Illinois, Wilmington, Delaware or New York, New York are
authorized or obligated by law, executive order or governmental decree to be
closed.

 

“Certificate of Trust” means the
Certificate of Trust of the Issuer substantially in the form of Exhibit A to the Trust Agreement.

 

“Class” means all Notes whose
form is identical except for variation in denomination, principal amount or
owner.

 

“Class A-1 Final Distribution Date”
has the meaning set forth in the Sale and Servicing Agreement.

 

“Class A-1 Rate” has
the meaning set forth in the Sale and Servicing Agreement.

 

 “Class A-1
Notes” means the Class A-1 Notes, substantially in
the form of Exhibit B.

 

“Class A-2 Final Distribution Date”
has the meaning set forth in the Sale and Servicing Agreement.

 

“Class A-2 Rate” has
the meaning set forth in the Sale and Servicing Agreement.

 

“Class A-2 Notes”
means the Class A-2 Notes, substantially in the form of Exhibit C.

 

“Class B Final Distribution Date”
has the meaning set forth in the Sale and Servicing Agreement.

 

“Class B Rate” has the
meaning set forth in the Sale and Servicing Agreement.

 

“Class B Notes” means the Class B
Notes, substantially in the form of Exhibit D.

 

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

 

3

 

“Clearing Agency Participant”
means a broker, dealer, bank, other financial institution or other Person for
whom from time to time a Clearing Agency effects book-entry transfers and
pledges of securities deposited with the Clearing Agency.

 

“Closing Date”
has the meaning set forth in the Sale and Servicing Agreement.

 

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

 

“Collateral”
means the Collateral Granted to the Indenture Trustee under this Indenture,
including all proceeds thereof.

 

“Commission”
means the Securities and Exchange Commission.

 

“Corporate Trust Office” means
the office of the Indenture Trustee at which at any particular time its
corporate trusts business shall be administered which office at date of the
execution of this Agreement is located at 2 North LaSalle Street, Suite 1020,
Chicago, Illinois 60602, Attention: Corporate Trust Administration; or at such
other address as the Indenture Trustee may designate from time to time by
notice to the Noteholders and the Issuer, or the principal corporate trust
office of any successor Indenture Trustee (the address of which the successor
Indenture Trustee will notify the Noteholders and the Issuer).

 

“Default” means any occurrence
that is, or with notice or the lapse of time or both would become, an Event of
Default.

 

“Definitive
Notes” shall have the meaning specified in Section 2.09.

 

“Distribution Date” has the
meaning set forth in the Sale and Servicing Agreement.

 

“DTC”
means The Depository Trust Company, and its successors and assigns.

 

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

 

“Event of
Default” shall have the meaning specified in Section 5.01.

 

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

 

“Executive Officer” means, with
respect to any corporation, the Chief Executive Officer, Chief Operating
Officer, Chief Financial Officer, President, Executive Vice President, any Vice
President, the Secretary or the Treasurer of such corporation; and with respect
to any partnership, any general partner thereof.

 

 “Grant”
means mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create and grant a lien upon and a security interest
in and right of set-off against, deposit, set over and confirm pursuant to this
Indenture.  A Grant of the Collateral or
of any other agreement or instrument shall include all rights, powers and
options (but none of the obligations) of the granting party thereunder,
including the immediate and continuing right to claim for, collect, receive and
give receipt for principal

 

4

 

and interest payments in respect of the Collateral and
all other moneys payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and
options, to bring Proceedings in the name of the granting party or otherwise
and generally to do and receive anything that the granting party is or may be
entitled to do or receive thereunder or with respect thereto.

 

“Harley-Davidson Credit” means
Harley-Davidson Credit Corp., and its successors and assigns.

 

“Holder” or “Noteholder”
or “Note Owner” means, with respect to a
Book-Entry Note, the Person who is the owner of such Book-Entry Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly as a Clearing Agency
participant or as an indirect participant, in each case in accordance with the rules of
such Clearing Agency) and with respect to a Definitive Note the Person in whose
name a Note is registered on the Note Register.

 

“Indebtedness” means, with
respect to any Person at any time, (i) indebtedness or liability of such
Person for borrowed money whether or not evidenced by bonds, debentures, notes
or other instruments, or for the deferred purchase price of property or
services (including trade obligations); (ii) obligations of such Person as
lessee under leases which should have been or should be, in accordance with
generally accepted accounting principles, recorded as capital leases; (iii) current
liabilities of such Person in respect of unfunded vested benefits under plans
covered by Title IV of ERISA; (iv) obligations issued for or liabilities
incurred on the account of such Person; (v) obligations or liabilities of
such Person arising under acceptance facilities; (vi) obligations of such
Person under any guaranties, endorsements (other than for collection or deposit
in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (vii) obligations of such
Person secured by any lien on property or assets of such Person, whether or not
the obligations have been assumed by such Person; or (viii) obligations of
such Person under any interest rate or currency exchange agreement.

 

“Indenture” means this Indenture,
as amended or supplemented from time to time.

 

“Indenture
Securities” means the Notes.

 

“Indenture
Security Holder” means a Noteholder.

 

“Indenture Trustee” means The
Bank of New York Trust Company, N.A., as Indenture Trustee under this
Indenture, or any successor Indenture Trustee under this Indenture.

 

“Independent” means, when used
with respect to any specified Person, that the Person (i) is in fact
independent of the Issuer, any other obligor upon the Notes, the Trust
Depositor, the Seller and any of their respective Affiliates, (ii) does
not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Seller or any of their
respective Affiliates, and (iii) is not connected with the Issuer, any
such other obligor, the Seller or any Affiliate of any of the foregoing Persons
as

 

5

 

an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

 

“Independent Certificate” means a
certificate or opinion to be delivered to the Indenture Trustee under the
circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.01, made by an Independent appraiser or other
expert appointed by an Issuer Order and approved by the Indenture Trustee in
the exercise of reasonable care, and such opinion or certificate shall state
that the signer has read the definition of “Independent”
in this Indenture and that the signer is Independent within the meaning
thereof.

 

“Interest Period” means, with
respect to any Distribution Date and any Class of Notes, the period from
and including the fifteenth day of the month of the Distribution Date
immediately preceding such Distribution Date (or, in the case of the first
Distribution Date, from and including the Closing Date) to but excluding the
fifteenth day of the month of such Distribution Date.

 

“Interest Rate” means the Class A-1
Rate, the Class A-2 Rate and the Class B Rate, as applicable.

 

“Issuer” means Harley-Davidson
Motorcycle Trust 2005-2 until a successor replaces it and, thereafter,
means the successor and, for purposes of any provision contained herein and
required by the TIA, each other obligor on the Notes.

 

“Issuer Order” and “Issuer Request” means a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to
the Indenture Trustee.

 

“Note”
means, as the context requires, a Class A-1 Note, a Class A-2
Note or a Class B Note.

 

“Note Depository Agreement” means
the agreement dated as of the Closing Date, among the Issuer, the
Administrator, the Indenture Trustee and DTC, as the initial Clearing Agency,
relating to the Notes, substantially in the form of Exhibit F
hereto.

 

“Note Register” and “Note Registrar” have the respective meanings specified in Section 2.04.

 

“Officer’s Certificate” means a
certificate signed by any Authorized Officer of the Issuer, under the
circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.01, and delivered to, the Indenture
Trustee.  Unless otherwise specified, any
reference in this Indenture to an Officer’s Certificate shall be to an Officer’s
Certificate of any Authorized Officer of the Issuer.

 

“Opinion of Counsel” means one or
more written opinions of counsel who may, except as otherwise expressly
provided in this Indenture, be employees of or counsel to the Issuer and who
shall be satisfactory to the Indenture Trustee and which shall comply with

 

6

 

any applicable requirements of Section 11.01, and
shall be in form and substance satisfactory to the Indenture Trustee.

 

“Outstanding” means, as of the
date of determination, all Notes theretofore authenticated and delivered under
this Indenture except:

 

(i)            Notes theretofore cancelled by the
Note Registrar or delivered to the Note Registrar for cancellation;

 

(ii)           Notes or portions thereof the payment
for which money in the necessary amount has been theretofore deposited with the
Indenture Trustee or any Paying Agent in trust for the Holders of such Notes (provided, however, that if such Notes are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture or
provision for such notice has been made, satisfactory to the Indenture Trustee,
has been made); and

 

(iii)          Notes in exchange for or in lieu of
other Notes which have been authenticated and delivered pursuant to this
Indenture unless proof satisfactory to the Indenture Trustee is presented that
any such Notes are held by a protected purchaser, within the meaning of § 8-303
of the UCC;

 

provided, however, that in
determining whether the Holders of the requisite Outstanding Amount have given
any request, demand, authorization, direction, notice, consent or waiver
hereunder or under any other Transaction Document, Notes owned by the Issuer,
any other obligor upon the Notes, the Trust Depositor, Harley-Davidson Credit
or any of their respective Affiliates shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Indenture Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes that the Indenture Trustee knows to be so
owned shall be so disregarded.  Notes so
owned that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s
right so to act with respect to such Notes and that the pledgee is not the
Issuer, any other obligor upon the Notes, the Trust Depositor, Harley-Davidson
Credit or any of their respective Affiliates.

 

“Outstanding Amount” means the
aggregate principal amount of all Notes of one Class or of all Classes, as
the case may be, Outstanding at the date of determination.

 

“Owner Trustee” means Wilmington
Trust Company, not in its individual capacity but solely as Owner Trustee under
the Trust Agreement, or any successor trustee under the Trust Agreement.

 

“Paying Agent” means the
Indenture Trustee or any other Person that meets the eligibility standards for
the Indenture Trustee specified in Section 6.11 and is authorized by the
Issuer to make the distributions from the Note Distribution Account, including
payment of principal of or interest on the Notes on behalf of the Issuer.

 

7

 

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

 

“Plan” means an employee benefit
plan, as defined in Section 3(3) of ERISA, that is subject to Title I
of ERISA or a plan, as defined in Section 4975(e)(1) of the Code.

 

“Predecessor Note” means, with
respect to any particular Note, every previous Note evidencing all or a portion
of the same debt as that evidenced by such particular Note; and for the purpose
of this definition, any Note authenticated and delivered under Section 2.05
in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Note.

 

“Proceeding” means any suit in
equity, action at law or other judicial or administrative proceeding.

 

“Rating
Agency” means each of Moody’s and Standard & Poor’s.

 

“Rating Agency Condition” means,
with respect to any action, that each Rating Agency shall have been given ten
days (or such shorter period as is acceptable to each Rating Agency) prior
notice thereof and that each Rating Agency shall have notified the Trust
Depositor, the Servicer and the Issuer in writing that such action will not
result in a qualification, reduction or withdrawal of its then-current rating
of any Class of Notes.

 

“Rating Event” means the
qualification, reduction or withdrawal by either Rating Agency of its
then-current rating of any Class of Notes.

 

“Record Date” means, with respect
to a Redemption Date, the close of business on the last Business Day of the
immediately preceding month and, with respect to a Distribution Date, the close
of business on the day immediately preceding such date.

 

“Redemption Date” means (a) in
the case of a redemption of the Notes pursuant to Section 10.01(a) or
a payment to Noteholders pursuant to Section 10.01(b), the Distribution
Date specified by the Servicer or the Issuer pursuant to Section 10.01(a) or
10.01(b), as the case may be and (b) in the case of a redemption of Notes
pursuant to Section 10.01(c), the Distribution Date specified in Section 7.07
of the Sale and Servicing Agreement on which the Indenture Trustee shall
withdraw any amount remaining in the Pre-Funding Account and deposit the
applicable amount in the Note Distribution Account.

 

“Redemption Date Amount” means (i) in
the case of a redemption of the Notes pursuant to Section 10.01(a), an
amount equal to the unpaid principal amount of the Notes redeemed plus accrued
and unpaid interest thereon at the weighted average of the Interest Rate for
each Class of Notes being so redeemed to but excluding the Redemption
Date, or (ii) in the case of a payment made to Noteholders pursuant to Section 10.01(b),
the amount on deposit in the Note Distribution Account, but not in excess of
the amount specified in clause (i) above.

 

8

 

“Registered Holder” means the
Person in whose name a Note is registered on the Note Register on the
applicable Record Date.

 

“Responsible Officer” means, with
respect to the Indenture Trustee, any officer within the Corporate Trust Office
(or any successor group of the Indenture Trustee), including any Vice
President, assistant secretary or other officer or assistant officer of the
Indenture Trustee customarily performing functions similar to those performed
by the people who at such time shall be officers, respectively, or to whom any
corporate trust matter is referred at the Corporate Trust Office of the
Indenture Trustee because of his knowledge of and familiarity with the
particular subject.

 

“Sale and Servicing Agreement”
means the Sale and Servicing Agreement, dated as of the date hereof, among the
Issuer, the Trust Depositor, the Indenture Trustee and the Servicer.

 

“Seller”  means Harley-Davidson Credit, in its capacity
as Seller under the Transfer and Sale Agreement, and any successors and
assigns.

 

“Servicer” means Harley-Davidson
Credit, in its capacity as Servicer under the Sale and Servicing Agreement, and
any Successor Servicer thereunder.

 

“Similar Law” means any foreign,
federal, state or local law with provisions substantially similar to Title I of
ERISA or Section 4975 of the Code.

 

“State” means any one of the 50 states
of the United States or any of its territories, or the District of Columbia.

 

“Termination Date” means the date
on which the Indenture Trustee shall have received payment and performance of
all amounts and obligations which the Issuer may owe to or on behalf of the
Indenture Trustee for the benefit of the Noteholders under this Indenture or
the Notes.

 

“Trust Agreement” means the Trust
Agreement, dated as of April 29, 2005, between the Trust Depositor and the
Owner Trustee.

 

“Trust Depositor” shall mean
Harley-Davidson Customer Funding Corp., in its capacity as trust depositor
under the Sale and Servicing Agreement.

 

“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended.

 

“UCC” means the Uniform
Commercial Code as in effect on the date hereof and from time to time in the
State of Illinois, provided that if by reason of mandatory provisions of
law, the perfection or the effect of perfection or non-perfection or priority
of the security interests in any collateral or the availability of any remedy
hereunder is governed by the Uniform Commercial Code as in effect on or after
the date hereof in any other jurisdiction, “UCC” means the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such perfection or effect of perfection or
non-perfection or priority or availability of such remedy.

 

9

 

 “United States” means the
United States of America.

 

(b)           Except
as otherwise specified herein or as the context may otherwise require,
capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in the Sale and Servicing Agreement.

 

Section 1.02.        Incorporation by Reference of Trust
Indenture Act. 
Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

 

“Commission”
means the Securities and Exchange Commission.

 

“indenture
securities” means the Notes.

 

“indenture
security holder” means a Noteholder.

 

“indenture
to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Indenture Trustee.

 

“obligor” on the indenture
securities means the Issuer and any other obligor on the indenture securities.

 

All other TIA terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
Commission rule have the meaning assigned to them by such definitions.

 

Section 1.03.        Rules of Construction.  Unless the
context otherwise requires:

 

(i)            a
term has the meaning assigned to it;

 

(ii)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time
to time;

 

(iii)          “or” is not exclusive;

 

(iv)          “including” means including without limitation;

 

(v)           words
in the singular include the plural and words in the plural include the
singular;

 

(vi)          any
agreement, instrument or statute defined or referred to herein or in any
instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; references to
a Person are also to its permitted successors and assigns; and

 

10

 

(vii)         the
words “hereof,”  “herein”
and “hereunder” and words of similar import
when used in this Indenture shall refer to this Indenture as a whole and not to
any particular provision of this Indenture; Section and subsection references
contained in this Indenture are references to Sections and subsections in or to
this Indenture unless otherwise specified.

 

ARTICLE TWO

THE NOTES

 

Section 2.01.        Form.  The Class A-1 Notes, the Class A-2
Notes and the Class B Notes, in each case together with the Indenture
Trustee’s certificate of authentication, shall be in substantially the forms
set forth as Exhibits to this Indenture with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. 
Any portion of the text of any Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Note.

 

Each Note shall be dated the date of its
authentication.  The terms of the Notes
set forth in Exhibits hereto are part of the terms of this Indenture.

 

Section 2.02.        Execution, Authentication and Delivery.  The Notes
shall be executed on behalf of the Issuer by any of its Authorized
Officers.  The signature of any such
Authorized Officer on the Notes may be manual or facsimile.  Notes bearing the manual or facsimile
signature of individuals who were at any time Authorized Officers of the Issuer
shall bind the Issuer, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of
such Notes or did not hold such offices at the date of such Notes.

 

The Indenture Trustee shall, upon receipt of an Issuer
Order, authenticate and deliver for original issue (i) Class A-1
Notes in an aggregate principal amount of $487,000,000, (ii) Class A-2
Notes in an aggregate principal amount of $251,180,000 and (iii) Class B
Notes in an aggregate principal amount of $36,820,000.  The aggregate principal amount of such
Classes of Notes Outstanding at any time may not exceed such respective
amounts, except as otherwise provided in Section 2.05.

 

Each Note shall be dated the date of its
authentication.  The Notes shall be
issuable as registered Notes in the minimum denomination of $1,000 and in
integral multiples of $1,000 in excess thereof.

 

No Note shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose, unless there appears on
such Note a certificate of authentication substantially in the form provided
for herein by the Indenture Trustee by the manual signature of one of its authorized
signatories, and such certificate upon any Note shall be

 

11

 

conclusive evidence, and the only evidence, that such
Note has been duly authenticated and delivered hereunder.

 

Section 2.03.        Temporary Notes.  Pending the preparation of
Book-Entry Notes or Definitive Notes, the Issuer may execute, and upon receipt
of an Issuer Order the Indenture Trustee shall authenticate and deliver,
temporary Notes that are printed, lithographed, typewritten, mimeographed or
otherwise produced, of the tenor of the definitive Notes in lieu of which they
are issued and with such variations not inconsistent with the terms of this
Indenture as the officers executing such Notes may determine, as evidenced by
their execution of such Notes.

 

If temporary Notes are issued, the Issuer will cause
Book-Entry Notes or Definitive Notes to be prepared without unreasonable
delay.  After the preparation of
Book-Entry Notes or Definitive Notes, the temporary Notes shall be exchangeable
for Book-Entry Notes or Definitive Notes upon surrender of the temporary Notes
at the office or agency of the Issuer to be maintained as provided in Section 3.02,
without charge to the Holder.  Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like tenor and principal amount of definitive Notes of authorized
denominations.  Until so exchanged, the temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as Book-Entry Notes or Definitive Notes.

 

Section 2.04.        Registration; Registration of Transfer
and Exchange. 
The Issuer shall cause to be kept a register (the “Note Register”) in
which, subject to such reasonable regulations as it may prescribe, the Note
Registrar shall provide for the registration of Notes and the registration of
transfers of Notes.  The Indenture
Trustee shall be “Note Registrar” for the purpose of registering Notes and
transfers of Notes as herein provided. 
Upon any resignation of any Note Registrar, the Issuer shall promptly
appoint a successor or, if it elects not to make such an appointment, assume
the duties of Note Registrar.

 

If a Person other than the Indenture Trustee is
appointed by the Issuer as Note Registrar, the Issuer will give the Indenture
Trustee prompt written notice of the appointment of such Note Registrar and of
the location, and any change in the location, of the Note Register, and the
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times and to obtain copies thereof, and the Indenture Trustee shall
have the right to rely upon a certificate executed on behalf of the Note
Registrar by an Executive Officer thereof as to the names and addresses of the
Holders of the Notes and the principal amounts and the amounts and number of
such Notes.

 

Upon surrender for registration of transfer of any
Note at the office or agency of the Issuer to be maintained as provided in Section 3.02,
the Issuer shall execute, and the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes of the same Class in
any authorized denominations, of a like aggregate principal amount.

 

At the option of the Holder, Notes may be exchanged
for other Notes of the same Class in any authorized denominations, of a
like aggregate principal amount, upon surrender

 

12

 

of the Notes to be exchanged at such office or
agency.  Whenever any Notes are so
surrendered for exchange, the Issuer shall execute, and the Indenture Trustee
shall authenticate and the Noteholder shall obtain from the Indenture Trustee,
the Notes which the Noteholder making the exchange is entitled to receive.

 

All Notes issued upon any registration of transfer or
exchange of Notes shall be the valid obligations of the Issuer, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the Notes
surrendered upon such registration of transfer or exchange.

 

Every Note presented or surrendered for registration
of transfer or exchange shall be duly endorsed by, or be accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder thereof or such Holder’s attorney duly authorized
in writing, with such signature guaranteed by a commercial bank or trust
company located, or having a correspondent located in the city in which the
Corporate Trust Office is located, or by a member firm of a national securities
exchange, and such other documents as the Indenture Trustee may require.

 

No service charge shall be made to a Holder for any
registration of transfer or exchange of Notes, but the Issuer or the Indenture
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of
transfer or exchange of Notes, other than exchanges pursuant to Section 2.03
not involving any transfer.

 

Each Person that acquires a Note shall be required to
represent, or in the case of a Note in book-entry form, will be deemed to
represent by its acceptance of the Note, that (i) it is not, and is not
acquiring the Note on behalf of or with “plan assets” (as determined under
Department of Labor Regulation Section 2510.3-101 or otherwise) of a
Plan, or any employee benefit plan subject to Similar Law, or (ii) its
acquisition and holding of the Note do not give rise to a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code,
or any Similar Law.  Any transfer with
respect to which the representation in clause (i) or (ii) above is
not true shall be void ab initio.

 

The Notes may not be purchased with the assets of a
Plan if the Issuer, the Indenture Trustee, the Owner Trustee, the Servicer or
the Underwriters or any of their affiliates has investment or administrative
discretion with respect to those Plan assets; has authority or responsibility to
give, or regularly gives, investment advice with respect to those Plan assets
for a fee and pursuant to an agreement or understanding that the advice will
serve as a primary basis for investment decisions with respect to those Plan
assets and will be based on the particular investment needs for the Plan; or is
an employer maintaining or contributing to the Plan.

 

The preceding provisions of this Section notwithstanding,
the Issuer shall not be required to make and the Note Registrar need not
register transfers or exchanges of Notes selected for redemption or of any Note
for a period of 15 days preceding the due date for any payment with respect to
the Note.

 

13

 

(i)            the
Note Registrar and the Indenture Trustee will be entitled to deal with the
Clearing Agency for all purposes of this Indenture (including the payment of
principal of and interest on the Notes and the giving of instructions or
directions hereunder) as the sole holder of the Notes, and shall have no
obligation to the Noteholders;

 

(ii)           the
rights of Noteholders will be exercised only through the Clearing Agency and
will be limited to those established by law and agreements between such
Noteholders and the Clearing Agency and/or the Clearing Agency Participants
pursuant to the Depository Agreement;

 

(iii)          whenever
this Indenture requires or permits actions to be taken based upon instructions
or directions of Holders of Notes evidencing a specified percentage of the
Outstanding Amount of the Notes, the Clearing Agency will be deemed to
represent such percentage only to the extent that it has received instructions
to such effect from Noteholders and/or Clearing Agency Participants owning or
representing, respectively, such required percentage of the beneficial interest
in the Notes and has delivered such instructions to the Indenture Trustee; and

 

(iv)          without
the consent of the Issuer and the Indenture Trustee, no such Note may be
transferred by the Depository except to a successor Depository that agrees to
hold such Note for the account of the Owners or except upon the election of the
Owner thereof or a subsequent transferee to hold such Note in physical form.

 

Neither the Indenture Trustee nor the Registrar shall
have any responsibility to monitor or restrict the transfer of beneficial
ownership in any Note an interest in which is transferable through the
facilities of the Depository.

 

Section 2.05.        Mutilated, Destroyed, Lost or Stolen
Notes. 
If (i) any mutilated Note is surrendered to the Indenture Trustee,
or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by them to hold
the Issuer and the Indenture Trustee harmless, then, in the absence of notice
to the Issuer, the Note Registrar or the Indenture Trustee that such Note has
been acquired by a protected purchaser, within the meaning of § 8-303
of the UCC, the Issuer shall execute and upon its request the Indenture Trustee
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class and
denomination; provided, however, that if any such destroyed, lost or stolen
Note, but not a mutilated Note, shall have become or within seven days shall be
due and payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
so due or payable or upon the Redemption Date without surrender thereof.  If, after the delivery of such replacement
Note or payment of a destroyed, lost or stolen Note pursuant to the proviso to
the preceding sentence, a protected purchaser, within the meaning of § 8-303
of the UCC, of the original Note in lieu of which such replacement Note was
issued presents for payment such original Note, the Issuer, and the Indenture
Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered or any
assignee of such Person,

 

14

 

except
a protected purchaser, within the meaning of § 8-303 of the UCC, and
shall be entitled to recover upon the security or indemnity provided therefor
to the extent of any loss, damage, cost or expense incurred by the Issuer or
the Indenture Trustee in connection therewith.

 

Upon the issuance of any replacement Note under this
Section, the Issuer or the Indenture Trustee may require the payment by the
Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other reasonable expenses
(including the fees and expenses of the Indenture Trustee or the Note
Registrar) connected therewith.

 

Every replacement Note issued pursuant to this Section in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute
an original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

 

The provisions of this Section are exclusive and
shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Notes.

 

Section 2.06.        Persons Deemed Owner.  Prior to due
presentment for registration of transfer of any Note, the Issuer, the Indenture
Trustee, and any of their respective agents may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if
any, on such Note and for all other purposes whatsoever, whether or not such
Note be overdue, and none of the Issuer, the Indenture Trustee nor any of their
respective agents shall be affected by notice to the contrary.

 

Section 2.07.        Payment of Principal and Interest;
Defaulted Interest.

 

(a)           Each
Class of Notes shall accrue interest at the related Interest Rate, and
such interest shall be payable on each Distribution Date as specified therein,
subject to Section 3.01.  Any
installment of interest or principal, if any, payable on any Note which is
punctually paid or duly provided for by the Issuer on the applicable
Distribution Date shall be paid to the Person in whose name such Note (or one
or more Predecessor Notes) is registered on the Record Date, by wire transfer
in immediately available funds to the account designated by such nominee and
except for the final installment of principal payable with respect to such Note
on a Distribution Date or on the related Final Distribution Date, as the case
may be (and except for the Redemption Price for any Note called for redemption
pursuant to Section 10.01(a)), which shall be payable as provided
below.  The funds represented by any such
checks returned undelivered shall be held in accordance with Section 3.03.

 

(b)           The
principal of each Note shall be payable on each Distribution Date to the extent
provided in the form of the related Note set forth as an Exhibit hereto.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due

 

15

 

and payable, if
not previously paid, on the date on which the maturity of the Notes has been
accelerated in the manner provided in Section 5.02.  All principal payments on each Class of
Notes shall be made pro rata to the Noteholders of such Class entitled
thereto.  The Indenture Trustee shall
notify the Person in whose name a Note is registered at the close of business
on the Record Date preceding the Distribution Date on which the Issuer expects
that the final installment of principal of and interest on such Note will be
paid.  Such notice shall be mailed within
five Business Days of receipt of notice of termination of the Trust pursuant to
Section 9.01(c) of the Trust Agreement and shall specify that such
final installment will be payable only upon presentation and surrender of such
Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment. 
Notices in connection with redemptions of Notes shall be mailed to
Noteholders as provided in Section 10.02.

 

(c)           If
the Issuer defaults in a payment of interest on the Notes, the Issuer shall pay
defaulted interest (plus interest on such defaulted interest to the extent
lawful) at the applicable Interest Rate in any lawful manner.  The Issuer may pay such defaulted interest to
the Persons who are Noteholders on a subsequent special record date, which date
shall be at least five Business Days prior to the related payment date.  The Issuer shall fix or cause to be fixed any
such special record date and payment date and, at least 15 days before any such
special record date, the Issuer shall mail to the Indenture Trustee and each
Noteholder a notice that states the special record date, the payment date and
the amount of defaulted interest to be paid.

 

Section 2.08.        Cancellation.  All Notes surrendered for
payment, registration of transfer, exchange or redemption shall, if surrendered
to any Person other than the Indenture Trustee, be delivered to the Indenture
Trustee and shall be promptly cancelled by the Indenture Trustee.  The Issuer may at any time deliver to the
Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee.  No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section, except as expressly permitted by this Indenture.  All cancelled Notes may be held or disposed
of by the Indenture Trustee in accordance with its standard retention or
disposal policy as in effect at the time unless the Issuer shall direct by an
Issuer Order that they be destroyed or returned to it; provided that such
Issuer Order is timely and the Notes have not been previously disposed of by
the Indenture Trustee.

 

Section 2.09.        Book-Entry Notes.  The Notes, upon original issuance,
will be issued in the form of a typewritten Note or Notes representing the
Book-Entry Notes, to be delivered to DTC, the initial Depository, by, or on
behalf of, the Issuer.  Such Notes shall
initially be registered on the Note Register in the name of Cede &
Co., the nominee of the initial Clearing Agency, and no Noteholder will receive
a Definitive Note representing such Noteholder’s interest in such Note, except
as provided in Section 2.11.  Unless
and until definitive, fully registered Notes (the “Definitive Notes”) have been
issued to Noteholders pursuant to Section 2.11:

 

(i)            the provisions of this Section shall
be in full force and effect;

 

16

 

(ii)           the Note Registrar and the Indenture
Trustee shall be entitled to deal with the Clearing Agency for all purposes of
this Indenture (including the payment of principal of and interest on the Notes
and the giving of instructions or directions hereunder) as the sole holder of
the Notes, and shall have no obligation to the Noteholders;

 

(iii)          to the extent that the provisions of
this Section conflict with any other provisions of this Indenture, the
provisions of this Section shall control;

 

(iv)          the rights of Noteholders shall be
exercised only through the Clearing Agency and shall be limited to those
established by law and agreements between such Noteholders and the Clearing
Agency and/or the Clearing Agency Participants. 
Pursuant to the Note Depository Agreement, unless and until Definitive
Notes are issued pursuant to Section 2.11, the Clearing Agency will make
book-entry transfers among the Clearing Agency Participants and receive and
transmit payments of principal of and interest on the Notes to such Clearing
Agency Participants; and

 

(v)           whenever this Indenture requires or
permits actions to be taken based upon instructions or directions of
Noteholders evidencing a specified percentage of the Outstanding Amount, the
Clearing Agency shall be deemed to represent such percentage only to the extent
that it has received instructions to such effect from Noteholders and/or
Clearing Agency Participants owning or representing, respectively, such
required percentage of the beneficial interest in the Notes and has delivered
such instructions to the Indenture Trustee.

 

Section 2.10.        Notices to Clearing Agency.  Whenever a
notice or other communication to the Noteholders is required under this
Indenture, unless and until Definitive Notes shall have been issued to
Noteholders pursuant to Section 2.11, the Indenture Trustee shall give all
such notices and communications specified herein to be given to Noteholders of
the Notes to the Clearing Agency, and shall have no obligation to the
Noteholders.

 

Section 2.11.        Definitive Notes.  If (i)(A) the
Administrator advises the Indenture Trustee in writing that the Clearing Agency
is no longer willing or able to properly discharge its responsibilities as
described in the Note Depository Agreement, and (B) Indenture Trustee or
the Administrator is unable to locate a qualified successor, (ii) the
Administrator or the Owner Trustee, as applicable, notifies the Clearing Agency
of its intent to terminate the book-entry system through the Clearing Agency
and requests a withdrawal of the Book-Entry Notes held by the Clearing Agency,
and after receipt by the Clearing Agency Participants of an important notice
issued by the Clearing Agency notifying the Clearing Agency Participants of
such withdrawal request, the Clearing Agency Participants holding beneficial
interests in the Book-Entry Notes agree to initiate such termination, or (iii) after
the occurrence of an Event of Default, the Modified Required Holders advise the
Indenture Trustee and the Clearing Agency through the Clearing Agency
Participants in writing that the continuation of a book-entry system through
the Clearing Agency is no longer in the best interests of the related
Noteholders, then the Indenture Trustee shall notify all Noteholders of the
related Class or Classes of Notes, through the Clearing Agency, of the
occurrence of any such event and of the availability of Definitive Notes of the
related Class

 

17

 

of
Notes to Noteholders requesting the same. 
Upon surrender to the Indenture Trustee of the Note or Notes
representing the Book-Entry Notes by the Clearing Agency, accompanied by
registration instructions, the Issuer shall execute and the Indenture Trustee
shall authenticate the Definitive Notes in accordance with the instructions of
the Clearing Agency.  None of the Issuer,
the Note Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. 
Upon the issuance of Definitive Notes of a Class, the Indenture Trustee
shall recognize the Noteholders of the Definitive Notes as Noteholders
hereunder.

 

The Indenture Trustee shall not be liable if the
Indenture Trustee or the Administrator is unable to locate a qualified
successor Clearing Agency.  The
Definitive Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the officers executing such Notes, as evidenced
by their execution of such Notes.

 

Section 2.12.        Release of Collateral.  Subject to
Sections 4.04, 8.04 and 11.01 and the terms of the Transaction Documents, the
Indenture Trustee shall release property from the lien of this Indenture only
upon receipt of an Issuer Request accompanied by an Officer’s Certificate.

 

Section 2.13.        Tax Treatment.  The Issuer and the purchasers
of the Notes intend, and will take all actions consistent with the intention,
that the Notes be treated as indebtedness for all federal, state, local, and
foreign income and franchise tax purposes and that, pursuant to Treasury
Regulations Section 301.7701-3(b)(1)(ii) as in effect for
periods after January 1, 1997, the Trust be disregarded as a separate
entity from the Trust Depositor for federal income tax purposes.  The Issuer, by entering into this Indenture,
and each Noteholder, by its acceptance of its Note agree to treat the Notes for
federal, state and local income, single business and franchise tax purposes as
indebtedness of the Issuer.

 

ARTICLE THREE

COVENANTS

 

Section 3.01.        Payment of Principal and Interest.  The Issuer
will duly and punctually pay the principal of and interest, if any, on the
Notes in accordance with the terms of the Notes and this Indenture.  Without limiting the foregoing, subject to Section 8.02(c),
the Issuer and the Indenture Trustee will cause to be deposited into the Note
Distribution Account amounts allocated pursuant to Section 7.05 of the
Sale and Servicing Agreement, and cause to be distributed all such amounts on a
Distribution Date as deposited therein (i) for the benefit of the Class A-1
Notes, to the Class A-1 Noteholders, (ii) for the benefit of
the Class A-2 Notes, to the Class A-2 Noteholders and (iii) for
the benefit of the Class B Notes, to the Class B Noteholders, in each
case as further specified herein. 
Amounts properly withheld under the Code by any Person from a payment to
any Noteholder of interest and/or principal shall be considered as having been
paid by the Issuer to such Noteholder for all purposes of this Indenture.

 

18

 

Section 3.02.        Maintenance of Office or Agency.  The Issuer
will maintain in Wilmington, Delaware, an office or agency where Notes may be
surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served.  The Issuer hereby initially
appoints the Indenture Trustee to serve as its agent for the foregoing
purposes.  The Issuer will give prompt
written notice to the Indenture Trustee of the location, and of any change in
the location, of any such office or agency. 
If at any time the Issuer shall fail to maintain any such office or
agency or shall fail to furnish the Indenture Trustee with the address thereof,
such surrenders, notices and demands may be made or served at the Corporate
Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent
to receive all such surrenders, notices and demands.

 

Section 3.03.        Money for Payments to be Held in Trust.  As provided
in Section 8.02, all payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Collection
Account and the Note Distribution Account pursuant to Section 8.02(b) shall
be made on behalf of the Issuer by the Indenture Trustee or by another Paying
Agent, and no amounts so withdrawn from the Collection Account and the Note
Distribution Account for payments of Notes shall be paid over to the Issuer
except as provided in this Section.

 

On or before the Business Day immediately preceding
each Distribution Date and Redemption Date, the Issuer shall deposit or cause
to be deposited in the Note Distribution Account an aggregate sum sufficient to
pay the amounts then becoming due, such sum to be held in trust for the benefit
of the Persons entitled thereto and (unless the Paying Agent is the Indenture
Trustee) shall promptly notify the Indenture Trustee of its action or failure
so to act.

 

The Issuer will cause each Paying Agent other than the
Indenture Trustee to execute and deliver to the Indenture Trustee an instrument
in which such Paying Agent shall agree with the Indenture Trustee (and if the
Indenture Trustee acts as Paying Agent, it hereby so agrees), subject to the
provisions of this Section, that such Paying Agent will:

 

(i)            hold all sums held by it for the
payment of amounts due with respect to the Notes in trust for the benefit of
the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and pay such sums to such Persons as
herein provided;

 

(ii)           give the Indenture Trustee notice of
any default by the Issuer (or any other obligor upon the Notes) in the making
of any payment required to be made with respect to the Notes;

 

(iii)          at any time during the continuance of
any such default, upon the written request of the Indenture Trustee, forthwith
pay to the Indenture Trustee all sums so held in trust by such Paying Agent;

 

(iv)          immediately resign as a Paying Agent
and forthwith pay to the Indenture Trustee all sums held by it in trust for the
payment of Notes if at any time it ceases

 

19

 

to meet the standards required to be met by a Paying Agent at the time
of its appointment; and

 

(v)           comply with all requirements of the
Code with respect to the withholding from any payments made by it on any Notes
of any applicable withholding taxes imposed thereon and with respect to any
applicable reporting requirements in connection therewith.

 

The Issuer may at any time, for the purpose of
obtaining the satisfaction and discharge of this Indenture or for any other
purpose, by Issuer Order direct any Paying Agent to pay to the Indenture
Trustee all sums held in trust by such Paying Agent, such sums to be held by
the Indenture Trustee upon the same trusts as those upon which the sums were
held by such Paying Agent; and upon such payment by any Paying Agent to the
Indenture Trustee, such Paying Agent shall be released from all further
liability with respect to such money.

 

Subject to applicable laws with respect to escheat of
funds, any money held by the Indenture Trustee or any Paying Agent in trust for
the payment of any amount due with respect to any Note and remaining unclaimed
for two years after such amount has become due and payable shall be discharged
from such trust and upon receipt of an Issuer Request shall be deposited by the
Indenture Trustee in the Collection Account; and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof, and all liability of the Indenture Trustee or such Paying
Agent with respect to such trust money shall thereupon cease; provided, however, that if such money or any portion thereof
had been previously deposited by the Issuer with the Indenture Trustee for the
payment of principal or interest on the Notes; and provided,
further, that the Indenture Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Issuer cause
to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in The
City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to or for the account of the Issuer. 
The Indenture Trustee may also adopt and employ, at the expense of the
Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to Holders
whose Notes have been called but not have not been surrendered for redemption
or whose right to or interest in moneys due and payable but not claimed is
determinable from the records of the Indenture Trustee or of any Paying Agent,
at the last address of record for each such Holder).

 

Section 3.04.        Existence.  The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the United States,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and enforceability
of this Indenture, the Notes, the Collateral and each other instrument or
agreement included in the Collateral.

 

20

 

Section 3.05.        Protection of Collateral.  The Issuer
intends the security interest Granted pursuant to this Indenture in favor of
the Indenture Trustee on behalf of the Noteholders to be prior to all other
liens in respect of the Collateral, and the Issuer shall take all actions
necessary to obtain and maintain, for the benefit of the Indenture Trustee on
behalf of the Noteholders, a first lien on and a first priority, perfected
security interest in the Collateral.  The
Issuer will from time to time execute and deliver all such supplements and
amendments hereto and all such financing statements, continuation statements,
instruments of further assurance and other instruments, all as prepared by the
Servicer and delivered to the Issuer, and will take such other action necessary
or advisable to:

 

(i)            Grant more effectively all or any
portion of the Collateral;

 

(ii)           maintain or preserve the lien and
security interest (and the priority thereof) created by this Indenture or carry
out more effectively the purposes hereof;

 

(iii)          perfect, publish notice of or protect
the validity of any Grant made or to be made by this Indenture;

 

(iv)          enforce any of the Collateral;

 

(v)           preserve and defend title to the
Collateral and the rights of the Indenture Trustee and the Noteholders in such
Collateral against the claims of all persons and parties; and

 

(vi)          pay all taxes or assessments levied or
assessed upon the Collateral when due.

 

The Issuer shall file the
initial financing statements on Form UCC1. 
All financing statements filed or to be filed against the Issuer in
favor of the Indenture Trustee in connection herewith describing the Collateral
shall contain a statement to the following effect:  “A purchase of or security interest in any
collateral described in this financing statement, except as permitted in the
Indenture, will violate the rights of the Secured Party.”  The Issuer hereby authorizes the Indenture
Trustee to file all continuation statements or other instruments required to be
executed pursuant to this Section and hereby designates the Indenture
Trustee its agent and attorney-in-fact for such purpose.

 

Section 3.06.        Opinions as to Collateral.  On the Closing Date, the Issuer shall furnish to the Indenture Trustee
an Opinion of Counsel to the effect that, in the opinion of such counsel,
either (i) all financing statements and continuation statements have been
executed and filed that are necessary to create and continue the Indenture
Trustee’s first priority perfected security interest in the Collateral for the
benefit of the Noteholders, and reciting the details of such filings or (ii) no
such action shall be necessary to perfect such security interest.

 

Section 3.07.        Performance of Obligations; Servicing of
Contracts.

 

(a)           The
Issuer will not take any action and will use its best efforts not to permit any
action to be taken by others that would release any Person from any such Person’s

 

21

 

material covenants
or obligations under any instrument or agreement included in the Collateral or
that would result in the amendment, hypothecation, subordination, termination
or discharge of, or impair the validity or effectiveness of, any such
instrument or agreement, except as expressly provided in the Transaction
Documents or such other instrument or agreement.

 

(b)           The
Issuer may contract with other Persons to assist it in performing its duties
and obligations under this Indenture, and any performance of such duties by a
Person identified to the Indenture Trustee in an Officer’s Certificate shall be
deemed to be action taken by the Issuer. 
The Indenture Trustee shall not be responsible for the action or
inaction of the Servicer or the Administrator. 
Initially, the Issuer has contracted with the Servicer and the
Administrator to assist the Issuer in performing its duties under this
Indenture.

 

(c)           The
Issuer will punctually perform and observe all of its obligations and
agreements contained in this Indenture, the other Transaction Documents and in
the instruments and agreements included in the Collateral, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture and
the Sale and Servicing Agreement in accordance with and within the time periods
provided for herein and therein.  Except
as otherwise expressly provided therein, the Issuer shall not waive, amend,
modify, supplement or terminate any Transaction Document or any provision
thereof without the consent of the Indenture Trustee or the Required Holders.

 

(d)           If
the Issuer shall have knowledge of the occurrence of an Event of Termination,
the Issuer shall promptly notify the Indenture Trustee and each Rating Agency
thereof.  Upon any termination of the
Servicer’s rights and powers pursuant to the Sale and Servicing Agreement, the
Issuer shall promptly notify the Indenture Trustee.  As soon as a Successor Servicer is appointed,
the Issuer shall notify the Indenture Trustee and the Rating Agencies of such
appointment, specifying in such notice the name and address of such Successor
Servicer.

 

(e)           The
Issuer agrees that it will not waive timely performance or observance by the
Servicer or the Seller of their respective duties under the Transaction
Documents if the effect thereof would adversely affect the Holders of the
Notes.

 

Section 3.08.        Negative Covenants.  Until the
Termination Date, the Issuer shall not:

 

(i)            except
as expressly permitted by the Transaction Documents, sell, transfer, exchange
or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Collateral, unless directed to do so by the
Indenture Trustee;

 

(ii)           claim
any credit on, or make any deduction from the principal or interest payable in
respect of, the Notes (other than amounts properly withheld from such payments
under the Code or applicable state law) or assert any claim against any present
or former Noteholder by reason of the payment of the taxes levied or assessed
upon any part of the Collateral;

 

22

 

(iii)          (A) 
permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien created by this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released
from any covenant; or obligations with respect to the Notes under this Indenture
except as may be expressly permitted hereby, (B) permit any lien, charge,
excise, claim, security interest, mortgage or other encumbrance (other than the
lien of this Indenture) to be created on or extend to or otherwise arise upon
or burden the Collateral or any part thereof or any interest therein or the
proceeds thereof (other than tax liens, mechanics’ liens and other liens that
arise by operation of law, in each case on a Motorcycle and arising solely as a
result of an action or omission of the related Obligor), (C) permit the
lien created by this Indenture not to constitute a valid first priority (other
than with respect to any such tax, mechanics’ or other lien) security interest
in the Collateral, or (D) amend, modify or fail to comply with the
provisions of the Transaction Documents without the prior written consent of
the Indenture Trustee, except where the Transaction Documents allow for
amendment or modification without the consent or approval of the Indenture
Trustee;

 

(iv)          dissolve
or liquidate in whole or in part; or

 

(v)           change
its name or state of formation.

 

Section 3.09.        Annual Statement as to Compliance.  The Issuer
will deliver to the Indenture Trustee, on or before January 31 of each
year commencing January 31, 2006, an Officer’s Certificate stating, as to
the Authorized Officer signing such Officer’s Certificate, that:

 

(i)            a
review of the activities of the Issuer during the prior calendar year and of
performance under this Indenture has been made under such Authorized Officer’s
supervision; and

 

(ii)           to
the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has complied with all conditions and covenants under this Indenture
throughout such year, or, if there has been a default in the compliance of any
such condition or covenant, specifying each such default known to such
Authorized Officer and the nature and status thereof.

 

Section 3.10.        Issuer May Consolidate, etc. Only
on Certain Terms.

 

(a)           The
Issuer shall not consolidate or merge with or into any other Person, unless:

 

(i)            the Person (if other than the
Issuer) formed by or surviving such consolidation or merger shall be a Person
organized and existing under the laws of the United States or any State and
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Indenture Trustee, in form and substance satisfactory to the
Indenture Trustee, the due and punctual payment of the principal of and
interest on all Notes and the performance or observance of every agreement and covenant
of this Indenture and each other Transaction Document on the part of the Issuer
to be performed or observed, all as provided herein;

 

23

 

(ii)           immediately after giving effect to
such transaction, no Default or Event of Default shall have occurred and be
continuing;

 

(iii)          the Rating Agency Condition shall have
been satisfied with respect to such transaction;

 

(iv)          the Issuer shall have received an
Opinion of Counsel which shall be delivered to and shall be satisfactory to the
Indenture Trustee to the effect that such transaction will not have any
material adverse tax consequence to the Trust, any Noteholder or any
Certificateholder;

 

(v)           any action as is necessary to
maintain the lien and security interest created by this Indenture shall have
been taken;

 

(vi)          the Issuer shall have delivered to the
Indenture Trustee an Officer’s Certificate and an Opinion of Counsel (which
shall describe the actions taken as required by clause (v) above or that
no such actions will be taken) each stating that such consolidation or merger
and such supplemental indenture comply with this Article Three and that
all conditions precedent herein provided for relating to such transaction have
been complied with; and

 

(vii)         the Person (if other than the Issuer)
formed by or surviving such consolidation or merger has a net worth,
immediately after such consolidation or merger, that is (A) greater than
zero and (B) not less than the net worth of the Issuer immediately prior
to giving effect to such consolidation or merger.

 

(b)           The
Issuer shall not convey or transfer all or substantially all of its properties
or assets, including those included in the Collateral, to any Person (except as
expressly permitted by the Transaction Documents), unless:

 

(i)            the
Person that acquires by conveyance or transfer the properties and assets of the
Issuer shall (A) be a United States citizen or a Person organized and
existing under the laws of the United States or any State, (B) expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Indenture Trustee, in form and substance satisfactory to the Indenture Trustee,
the due and punctual payment of the principal of and interest on all Notes and
the performance or observance of every agreement and covenant of this Indenture
and each other Transaction Document on the part of the Issuer to be performed
or observed, all as provided herein, (C) expressly agree by means of such
supplemental indenture that all right, title and interest so conveyed or
transferred shall be subject and subordinate to the rights of Holders of the
Notes and (D) unless otherwise provided in such supplemental indenture,
expressly agree to indemnify, defend and hold harmless the Issuer against and
from any loss, liability or expense arising under or related to this Indenture
and the Notes.

 

(ii)           immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing;

 

24

 

(iii)          the
Rating Agency Condition shall have been satisfied with respect to such
transaction;

 

(iv)          the
Issuer shall have received an Opinion of Counsel which shall be delivered to
and shall be satisfactory to the Indenture Trustee to the effect that such
transaction will not have any material adverse tax consequence to the Trust,
any Noteholder or any Certificateholder;

 

(v)           any
action as is necessary to maintain the lien and security interest created by
this Indenture shall have been taken;

 

(vi)          the
Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
and an Opinion of Counsel (which shall describe the actions taken as required
by clause (v) above or that no such actions will be taken) each stating
that such conveyance or transfer and such supplemental indenture comply with
this Article Three and that all conditions precedent herein provided for
relating to such transaction have been complied with (including any filings
required by Exchange Act); and

 

(vii)         the
Issuer has a net worth, immediately after such conveyance or transfer, that is (A) greater
than zero and (B) not less than the net worth of the Issuer immediately
prior to giving effect to such conveyance or transfer.

 

Section 3.11.        Successor or Transferee.

 

(a)           Upon
any consolidation or merger of the Issuer in accordance with Section 3.10(a),
the Person formed by or surviving such consolidation or merger (if other than
the Issuer) shall succeed to, and be substituted for, and may exercise every
right and power of, the Issuer under this Indenture with same effect as if such
Person has been named as the Issuer herein.

 

(b)           Upon
a conveyance or transfer of all or substantially all the assets or properties
of the Issuer pursuant to Section 3.10(b), the Issuer will be released
from every covenant and agreement of this Indenture to be observed or performed
on the part of the Issuer with respect to the Notes immediately upon the
delivery of written notice to the Indenture Trustee stating that the Issuer is
to be so released.

 

Section 3.12.        No Other Business.  The Issuer shall not engage in
any business other than financing, purchasing, owning, selling and managing the
Contracts in the manner contemplated by this Indenture and the other
Transaction Documents and activities incidental thereto.

 

Section 3.13.        No Borrowing.  The Issuer shall not issue,
incur, assume, guarantee or otherwise become liable, directly or indirectly,
for any Indebtedness except for (i) the Notes and (ii) any other
Indebtedness permitted by or arising under the other Transaction
Documents.  The proceeds of the Notes
shall be used exclusively to fund the Issuer’s purchase of the Contracts and
the other assets specified in the Sale and Servicing Agreement, to fund the
Reserve Fund and to pay the transactional expenses of the Issuer.

 

25

 

Section 3.14.        Servicer’s Obligations.  The Issuer
shall cause the Servicer to comply with Article Five and Article Nine
of its obligations under the Sale and Servicing Agreement.

 

Section 3.15.        Guarantees, Loans Advances and Other
Liabilities. 
Except as otherwise contemplated by the Transaction Documents, the
Issuer shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuming another’s
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, any other interest in, or make any
capital contribution to, any other Person.

 

Section 3.16.        Capital Expenditures.  The Issuer
shall not make any expenditure (by long-term or operating lease or otherwise)
for capital assets (either realty or personalty).

 

Section 3.17.        Restricted Payments.  Except as
permitted by the Transaction Documents, the Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer or to the Servicer, (ii) redeem, purchase,
retire or otherwise acquire for value any such ownership or equity interest or
security or (iii) set aside or otherwise segregate any amounts for any
such purpose; provided, however, that the Issuer may make, or cause to be made,
(A) distributions to the Servicer, the Owner Trustee and the
Certificateholder as contemplated by, and to the extent funds are available for
such purpose under, the Sale and Servicing Agreement or the Trust Agreement and
(B) payments to the Indenture Trustee and the Owner Trustee pursuant to Section 1(a)(ii) of
the Administration Agreement.  The Issuer
will not, directly or indirectly, make payments to or distributions from the
Collection Account except in accordance with this Indenture and the other
Transaction Documents.

 

Section 3.18.        Notice of Events of Default.  The Issuer
agrees to give the Indenture Trustee and each Rating Agency prompt written
notice of each Event of Default hereunder and an Event of Termination under the
Sale and Servicing Agreement.

 

Section 3.19.        Further Instruments and Acts.  Upon request
of the Indenture Trustee, the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purpose of this Indenture.

 

Section 3.20.        Compliance with Laws.  The Issuer
shall comply with the requirements of all applicable laws, the non-compliance
with which would, individually or in the aggregate, materially and adversely
affect the ability of the Issuer to perform its obligations under the Notes,
this Indenture or any other Transaction Document.

 

Section 3.21.        Amendments of Sale and Servicing
Agreement and Trust Agreement.  The Issuer shall not agree to any amendment
to Section 11.01 of the Trust Agreement to

 

26

 

eliminate
the requirements thereunder that the Indenture Trustee or the Holders of the
Notes consent to amendments thereto as provided therein.

 

Section 3.22.        Removal of Administrator.  So long as
any Notes are issued and outstanding, the Issuer shall not remove the
Administrator without cause unless the Rating Agency Condition shall have been
satisfied in connection with such removal.

 

ARTICLE FOUR

SATISFACTION AND DISCHARGE

 

Section 4.01.        Satisfaction and Discharge of Indenture.  This
Indenture shall cease to be of further effect with respect to the Notes except
as to (i) rights of registration of transfer and exchange, (ii) substitution
of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders
to receive payments of principal thereof and interest thereon, (iv) Sections
3.01, 3.03, 3.04, 3.05, 3.07, 3.08, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the
rights, obligations and immunities of the Indenture Trustee hereunder
(including the rights of the Indenture Trustee under Section 6.07 and the
obligations of the Indenture Trustee under Section 4.02) and (vi) the
rights of Noteholders as beneficiaries hereof with respect to the property so
deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, when

 

(A)          either

 

(1)           all
Notes therefore authenticated and delivered (other than (i) Notes that
have been destroyed, lost or stolen and that have been replaced or paid as
provided in Section 2.05 and (ii) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Indenture Trustee for
cancellation;

 

(2)           all
Notes not theretofore delivered to the Indenture Trustee for cancellation

 

(i)            have
become due and payable, or

 

(ii)           will
become due and payable at their respective final Distribution Dates within one
year, or

 

(iii)          are
to be called for redemption within one year under arrangements satisfactory to
the Indenture Trustee for the giving of notice of redemption by the Indenture
Trustee in the name, and at the expense, of the Issuer, and the Issuer, in the
case of (i), (ii) or (iii) above, has irrevocably deposited or caused
to be irrevocably deposited with the Indenture Trustee

 

27

 

cash or direct obligations of or obligations
guaranteed by the United States (which will mature prior to the date such
amounts are payable), in trust in an Eligible Account for such purpose, in an
amount sufficient to pay and discharge the entire indebtedness on such Note not
theretofore delivered to the Indenture Trustee for cancellation when due to the
final scheduled Distribution Date (if Notes shall have been called for
redemption pursuant to Section 10.01(a)), as the case may be;

 

(B)           the Issuer has paid or performed or
caused to be paid or performed all amounts and obligations which the Issuer may
owe to or on behalf of the Indenture Trustee for the benefit of the Noteholders
under this Indenture or the Notes; and

 

(C)           the Issuer has delivered to the
Indenture Trustee an Officer’s Certificate and an Opinion of Counsel and (if
required by the TIA or the Indenture Trustee) an Independent Certificate from a
firm of certified public accountants, each meeting the applicable requirements
of Section 11.01(a) and, subject to Section 11.02, stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with and the Rating Agency
Condition has been satisfied.

 

Section 4.02.        Application of Trust Money.  All moneys
deposited with the Indenture Trustee pursuant to Section 4.01 shall be
held in trust and applied by it, in accordance with the provisions of the Notes
and this Indenture, to the payment, either directly or through any Paying
Agent, as the Indenture Trustee may determine, to the Holders of the particular
Notes for the payment or redemption of which such moneys have been deposited
with the Indenture Trustee, of all sums due and to become due thereon for
principal and interest; but such moneys need not be segregated from other funds
except to the extent required herein or in the Sale and Servicing Agreement or
required by law.

 

Section 4.03.        Repayment of Moneys Held by Paying Agent.  In
connection with the satisfaction and discharge of this Indenture with respect
to the Notes, all moneys then held by any Paying Agent other than the Indenture
Trustee under the provisions of this Indenture with respect to such Notes
shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held
and applied according to Section 3.03 and thereupon such Paying Agent
shall be released from all further liability with respect to such moneys.

 

Section 4.04.        Release of Collateral.  Subject to Section 11.01
and the terms of the Transaction Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer’s Certificate and an Opinion of Counsel and
Independent Certificates in accordance with TIA §§314(c) and 314(d)(1) or
an Opinion of Counsel in lieu of such Independent Certificates to the effect
that the TIA does not require any such Independent Certificates.

 

28

 

ARTICLE FIVE

REMEDIES

 

Section 5.01.        Events of Default.  “Event of Default,” wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by operation
of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(i)            default in the payment of any interest on any Note when the
same becomes due and payable, and such default shall continue for a period of
five days;

 

(ii)           default in the payment of the principal of or any
installment of the principal of any Note when the same becomes due and payable;

 

(iii)          default
in the observance or performance of any covenant or agreement of the Issuer
made in this Indenture (other than a covenant or agreement, a default in the
observance or performance of which is elsewhere in this Section specifically
dealt with) which default has a material adverse effect on the Noteholders, or
any representation or warranty of the Issuer made in this Indenture or in any
certificate or other writing delivered pursuant hereto or in connection
herewith proving to have been incorrect in any material respect as of the time
when the same shall have been made, and such default shall continue or not be
cured, or the circumstance or condition in respect of which such
misrepresentation or warranty was incorrect shall not have been eliminated or
otherwise cured, for a period of 30 days after there shall have been given, by
registered or certified mail, to the Indenture Trustee by the Holders of at
least 25% of the Outstanding Amount of the Class A-1 Notes and the Class A-2
Notes, taken together as a single class, or, if there are no Class A-1
Notes or Class A-2 Notes Outstanding, by the Holders of at least 25%
of the Outstanding Amount of the Class B Notes a written notice specifying
such default or incorrect representation or warranty and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder;

 

(iv)          the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of the Issuer or any substantial part of the Collateral in
an involuntary case under any applicable federal or state bankruptcy, insolvency
or other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of
the Issuer or for any substantial part of the Collateral, or ordering the
winding-up or liquidation of the Issuer’s affairs, and such decree or order
shall remain unstayed and in effect for a period of 60 consecutive days; or

 

(v)           the
commencement by the Issuer of a voluntary case under any applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect,
or the consent by the Issuer to the entry of an order for relief in an
involuntary case under any such law, or the consent by the Issuer to the
appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any
substantial part of the Collateral, or the making by the Issuer of any general

 

29

 

assignment
for the benefit of creditors, or the failure by the Issuer generally to pay its
debts as such debts become due, or the taking of action by the Issuer in
furtherance of any of the foregoing.

 

The Issuer shall deliver to the Indenture Trustee
within five days after obtaining knowledge of the occurrence thereof, written
notice in the form of an Officer’s Certificate of any event which with the
giving of notice and the lapse of time would become an Event of Default under
clause (iii) above, its status and what action the Issuer is taking or
proposes to take with respect thereto.

 

Section 5.02.        Rights Upon Event of Default.  If an Event
of Default shall have occurred and be continuing, other than an Event of
Default described in Section 5.01(iv) or (v) above, the
Indenture Trustee or the Modified Required Holders may declare the principal
amount of the Notes immediately due and payable at par.  At any time after such declaration of
acceleration of maturity has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article Five, provided, the Required Holders may rescind such declaration if (i) the
Issuer has made all payments of principal of and interest on all Notes when the
same becomes due and payable and (ii) the Issuer has paid all amounts due
and payable to the Indenture Trustee.  If
an Event of Default described in Section 5.01(iv) or (v) shall
have occurred and be continuing, the principal amount of the Notes shall become
immediately due and payable.

 

Section 5.03.        Collection of Indebtedness and Suits for
Enforcement by Indenture Trustee; Authority of Indenture Trustee.

 

(a)           The
Issuer covenants that if the Notes are accelerated following the occurrence of
an Event of Default, the Issuer will, upon demand of the Indenture Trustee, pay
to it, for the benefit of the Holders of the Notes, the whole amount then due
and payable on such Notes for principal and interest, with interest upon the
overdue principal, and, to the extent payment at such rate of interest shall be
legally enforceable, upon overdue installments of interest, at the applicable
Interest Rate and in addition thereto such further amount as shall be
sufficient to cover costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel.

 

(b)           The
Indenture Trustee following the occurrence of an Event of Default,
shall have full right, power and authority to take, or defer from taking, any
and all acts with respect to the administration, maintenance or disposition of
the Collateral.

 

(c)           If
an Event of Default occurs and is continuing, the Indenture Trustee may in its
discretion (except as provided in Section 5.03(d)), proceed to protect and
enforce its rights and the rights of the Noteholders, by such appropriate
Proceedings as the Indenture Trustee shall deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy or legal or equitable right
vested in the Indenture Trustee by this Indenture or by law.

 

30

 

(d)           Notwithstanding
anything to the contrary contained in this Indenture, if an Event of Default
shall have occurred and be continuing and if the Issuer fails to perform its
obligations under Section 10.01(b) when and as due, the Indenture
Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the Noteholders by such appropriate Proceedings as the Indenture
Trustee shall deem most effective to protect and enforce any such rights,
whether for specific performance of any covenant or agreement in this Indenture
or in aid of the exercise of any power granted herein, or to enforce any other
proper remedy or legal or equitable right vested in the Indenture Trustee by
this Indenture or by law, provided that the Indenture Trustee shall only be
entitled to take any such actions to the extent such actions (i) are taken
only to enforce the Issuer’s obligations to redeem the principal amount of
Notes, and (ii) are taken only against the Collateral any investments
therein and any proceeds thereof.

 

(e)           In
case there shall be pending, relative to the Issuer or any other obligor upon
the Notes or any Person having or claiming an ownership interest in the
Collateral, Proceedings under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or other similar law, or in
case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee
shall have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

 

(i)            to
file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Notes and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee (including any claim for reasonable compensation to the
Indenture Trustee and each predecessor Indenture Trustee, and their respective
agents, attorneys and counsel, and for reimbursement of all expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee, except as a result of negligence or bad faith)
and of the Noteholders allowed in such Proceedings;

 

(ii)  unless prohibited by applicable law and
regulations, to vote on behalf of the Holders of Notes in any election of a
trustee, a standby trustee or Person performing similar functions in any such
Proceedings;

 

(iii)  to collect and receive any moneys or other
property payable or deliverable on any such claims and to distribute all
amounts received with respect to the claims of the Noteholders and of the
Indenture Trustee on their behalf; and

 

(iv)  to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the
claims of the Indenture Trustee or

 

31

 

the
Holders of Notes allowed in any judicial proceedings relative to the Issuer,
its creditors and its property;

 

and any trustee,
receiver, liquidator, custodian or other similar official in any such
Proceeding is hereby authorized by each of such Noteholders to make payments to
the Indenture Trustee, and, in the event that the Indenture Trustee shall
consent to the making of payments directly to such Noteholders, to pay to the
Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

 

(f)            Nothing
herein contained shall be deemed to authorize the Indenture Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Noteholder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof or to authorize the
Indenture Trustee to vote in respect of the claim of any Noteholder in any such
proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar Person.

 

(g)           All
rights of action and of asserting claims under this Indenture or under any of
the Notes, may be enforced by the Indenture Trustee without the possession of
any of the Notes or the production thereof in any trial or other Proceedings
relative thereto, and any such action or Proceedings instituted by the
Indenture Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Notes.

 

(h)           In
any Proceedings brought by the Indenture Trustee (including any Proceedings
involving the interpretation of any provision of this Indenture), the Indenture
Trustee shall be held to represent all of the Holders of the Notes, and it shall
not be necessary to make any Noteholder a party to any such proceedings.

 

Section 5.04.        Remedies.  If an Event
of Default shall have occurred and be continuing, the Indenture Trustee
(subject to Section 5.05) may, and shall if so directed by the Required
Holders in writing:

 

(i)            institute
Proceedings in its own name and as or on behalf of a trustee of an express
trust for the collection of all amounts then payable on the Notes or under this
Indenture with respect thereto, whether by declaration or otherwise, enforce
any judgment obtained, and collect from the Issuer and any other obligor upon
such Notes moneys adjudged due;

 

(ii)           institute Proceedings from time to time for the complete or
partial foreclosure of this Indenture with respect to the Collateral;

 

(iii)          exercise any remedies of a secured party under the UCC and
any other remedy available to the Indenture Trustee and take any other
appropriate action to

 

32

 

protect
and enforce the rights and remedies of the Indenture Trustee on behalf of the
Noteholders under this Indenture or the Notes; and

 

(iv)          sell
the Collateral or any portion thereof or rights or interest therein, at one or
more public or private sales called and conducted in any manner permitted by
law; provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Collateral following an Event of Default, unless (A) the
Holders of 100% of the Outstanding Amount of the Notes, consent thereto, (B) the
proceeds of such sale or liquidation distributable to the Noteholders are
sufficient to discharge in full all amounts then due and unpaid upon such Notes
for principal and interest, (C) there has been an Event of Default
described in Section 5.01(i) or (ii) and (D) the Indenture
Trustee determines that the Collateral will not continue to provide sufficient
funds for the payment of principal of and interest on the Notes as they would
have become due if the Notes had not been declared due and payable, and the
Indenture Trustee provides prior written notice to each Rating Agency and
obtains the consent of the Required Holders. 
In determining such sufficiency or insufficiency with respect to clauses
(B) and (C), the Indenture Trustee may, but need not, obtain and rely upon
an opinion of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such purpose; provided, however, upon the
occurrence of an Event of Default described in Section 5.01(iv) or
(v), caused solely from an event described in such subparagraphs occurring with
respect to the Trust Depositor, the Collateral will be liquidated by the
Indenture Trustee and the Trust will be terminated 90 days after the date of
such Insolvency Event, unless, before the end of such 90-day period, the
related Trustee shall have received written instructions from the Required
Holders, to the effect that such Required Holders disapprove of the liquidation
of such Collateral and termination of such Trust.

 

Section 5.05.        Optional Preservation of the Contracts.  Following an Event of Default and if such
Event of Default has not been rescinded and annulled, the Indenture Trustee
may, but need not, elect to maintain possession of the Collateral.  It is the desire of the parties hereto and
the Noteholders that there be at all times sufficient funds for the payment of
principal and interest on the Notes, and the Indenture Trustee shall take such
desire into account when determining whether or not to maintain possession of
the Collateral.  In determining whether
to maintain possession of the Collateral, the Indenture Trustee may, but need
not, obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Collateral for such purpose.

 

Section 5.06.        Priorities.

 

(a)           If
the Indenture Trustee collects any money or property pursuant to this Article Five,
it shall pay out the money or property in the order and priority set forth in Section 7.05(b) or
(c) of the Sale and Servicing Agreement.

 

(b)           The
Indenture Trustee may fix a record date and payment date for any payment to
Noteholders pursuant to this Section.  At
least 15 days before such record date,

 

33

 

the
Issuer shall mail to each Noteholder and the Indenture Trustee a notice that
states the record date, the payment date and the amount to be paid.

 

Section 5.07.        Limitation of Suits.  No Holder of any Note shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless (and in all events subject to Section 11.16
hereof):

 

(i)            such Holder
has previously given written notice to the Indenture Trustee of a continuing
Event of Default;

 

(ii)           the Holders of not less than 25% of
the Outstanding Amount of the Class A-1 Notes and the Class A-2
Notes, or, if there are no Class A-1 Notes or Class A-2
Notes Outstanding, Holders of not less than 25% of the Outstanding Amount of
the Class B Notes have made written request to the Indenture Trustee to
institute such Proceeding in respect of such Event of Default in its own name
as Indenture Trustee hereunder;

 

(iii)          such Holder
or Holders have offered to the Indenture Trustee reasonable indemnity against
the costs, expenses and liabilities to be incurred in complying with such
request;

 

(iv)          the Indenture Trustee for 60 days
after its receipt of such notice, request and offer of indemnity has failed to
institute such Proceedings; and

 

(v)           no direction
inconsistent with such written request has been given to the Indenture Trustee
during such 60-day period by the Required Holders.

 

It is understood and
intended that no one or more Holders of Notes shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holders of
Notes or to obtain or to seek to obtain priority or preference over any other
Holders or to enforce any right under this Indenture, except in the manner
herein provided.

 

In the event the Indenture Trustee shall receive
conflicting or inconsistent requests and indemnity from two or more groups of
Holders of Notes, each representing less than a majority of the Outstanding
Amount of the Class A-1 Notes and the Class A-2 Notes or
the Class B Notes, as the case may be, the Indenture Trustee shall act at the
direction of the group of Holders of Notes with the greater Outstanding Amount
of Class A-1 Notes, Class A-2 Notes, or Class B
Notes, as the case may be; provided, however, if the Indenture Trustee receives
conflicting or inconsistent requests and indemnity from two or more groups of
Holders of Notes representing an equal Outstanding Amount of the Class A-1
Notes, Class A-2 Notes or Class B Notes, the Indenture Trustee
in its sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

 

Section 5.08.        Unconditional Rights of Noteholders to
Receive Principal and Interest. 
Notwithstanding any other provisions in the Indenture, the Holder of any
Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest on such Note on or after the
respective due dates thereof expressed in such

 

34

 

Note or
in this Indenture (or, in the case of redemption, on or after the Redemption
Date) and to institute suit for the enforcement of any such payment, and such
right shall not be impaired without the consent of such Holder.

 

Section 5.09.        Restoration of Rights and Remedies.  If the Indenture Trustee or any Noteholder
has instituted any Proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason
or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Indenture Trustee and the
Noteholders shall, subject to any determination in such Proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Indenture Trustee and the Noteholders shall
continue as though no such Proceeding had been instituted.

 

Section 5.10.        Rights and Remedies Cumulative.  No right or remedy herein conferred upon or
reserved to the Indenture Trustee or to the Noteholders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

Section 5.11.        Delay or Omission Not a Waiver.  No delay or omission of the Indenture Trustee
or any Holder of any Note to exercise any right or remedy accruing upon any
Default of Event of Default shall impair any such right or remedy or constitute
a waiver of any such Default or Event of Default or an
acquiescence therein.  Every right
and remedy given by this Article Five or by law to the Indenture Trustee
or to the Noteholders may be exercised from time to time, and as often as may
be deemed expedient, by the Indenture Trustee or by the Noteholders, as the
case may be.

 

Section 5.12.        Control by Noteholders.  The Required Holders shall have the right to
direct the time, method and place of conducting any Proceeding for any remedy
available to the Indenture Trustee with respect to the Notes or exercising any
trust or power conferred on the Indenture Trustee; provided that:

 

(i)            such
direction shall not be in conflict with any rule of law or with this
Indenture;

 

(ii)           subject to
the terms of Section 5.04, any direction to the Indenture Trustee to sell
or liquidate the Collateral shall be by the Holders of Notes representing not
less than 100% of the Outstanding Amount of the Notes;

 

(iii) if the
conditions set forth in Section 5.05 have been satisfied and the Indenture
Trustee elects to retain the Collateral pursuant to such Section, then any
direction to the Indenture Trustee by Holders of Notes representing less than
100% of the Outstanding Amount of the Notes to sell or liquidate the Collateral
shall be of no force and effect; and

 

(iv) the Indenture Trustee may take any other action deemed
proper by the Indenture Trustee that is not inconsistent with such direction.

 

35

 

Notwithstanding the
rights of Noteholders set forth in this Section, subject to Section 6.01,
the Indenture Trustee need not take any action that it determines might involve
it in liability or might materially and adversely affect the rights of any
Noteholders not consenting to such action.

 

Section 5.13.        Waiver of Past Defaults.  In the case of any waiver of an Event of
Default, the Issuer, the Indenture Trustee and the Holders of the Notes shall
be restored to their former positions and rights hereunder, respectively; but
no such waiver shall extend to any subsequent or other Event of Default or
impair any right consequent thereto. 
Upon any such waiver, such Event of Default shall cease to exist and be
deemed to have been cured and not to have occurred, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereto.

 

Section 5.14.        Undertaking for Costs.  All parties to this Indenture agree, and each
Holder of any Note by such Holder’s acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (i) any suit instituted
by the Indenture Trustee, (ii) any suit instituted by any Noteholder, or
group of Noteholders, in each case holding in the aggregate more than 10% of
the Outstanding Amount of the Class A-1 Notes and the Class A-2
Notes, or, if there are no Class A-1 Notes, Class A-2
Notes Outstanding, any Noteholder or group of Noteholders holding in the
aggregate 10% of the Outstanding Amount of the Class B Notes or (iii) any
suit instituted by any Noteholder for the enforcement of the payment of
principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture (or, in the case of redemption, on
or after the Redemption Date).

 

Section 5.15.        Waiver of Stay or Extension Laws.  The Issuer covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead or in
any manner whatsoever, claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Issuer (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantages of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Indenture Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

 

Section 5.16.        Action on Notes.  The Indenture Trustee’s right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture.  Neither the lien of
this Indenture nor any rights or remedies of the Indenture Trustee or the
Noteholders shall be impaired by the recovery of any judgment by the Indenture
Trustee against the Issuer or by

 

36

 

the levy of any execution under such judgment upon any
portion of the Collateral or upon any of the assets of the Issuer.  Any money or property collected by the
Indenture Trustee shall be applied in accordance with Section 5.06.

 

Section 5.17.        Performance and Enforcement of Certain
Obligations.

 

(a)           Promptly
following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer shall take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and
observance by the Trust Depositor and the Servicer, as applicable, of each of
their obligations to the Issuer under or in connection with the Sale and
Servicing Agreement in accordance with the terms thereof, and to exercise any
and all rights, remedies, powers and privileges lawfully available to the
Issuer under or in connection with the Sale and Servicing Agreement to the
extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Trust Depositor or the
Servicer thereunder and the institution of legal of administrative actions or
proceedings to compel or secure performance by the Trust Depositor or the
Servicer of each of their obligations under the Sale and Servicing Agreement.

 

(b)           If
an Event of Default has occurred and is continuing, the Indenture Trustee may,
and at the direction (which direction shall be in writing, including facsimile)
of the Modified Required Holders shall exercise all rights, remedies, powers,
privileges and claims of the Issuer against the Trust Depositor or the Servicer
under or in connection with the Sale and Servicing Agreement, including the
right or power to take any action to compel or secure performance or observance
by the Trust Depositor or the Servicer of each of their obligations to the
Issuer thereunder and to give any consent, request, notice, direction,
approval, extension or waiver under the Sale and Servicing Agreement, and any
right of the Issuer to take such action shall be suspended.

 

ARTICLE SIX

THE INDENTURE TRUSTEE

 

Section 6.01.        Duties of Indenture Trustee.

 

(a)           If
an Event of Default has occurred and is continuing, the Indenture Trustee shall
exercise the rights and powers vested in it by this Indenture and in the same
degree of care and skill in their exercise as a prudent person would exercise
or use under the circumstances in the conduct of such person’s own affairs.

 

(b)           Except
during the continuance of an Event of Default:

 

(i)            the
Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Indenture Trustee;
and

 

37

 

(ii)           in
the absence of bad faith on its part, the Indenture Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Indenture
Trustee and conforming to the requirements of this Indenture; however, the Indenture
Trustee shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture and the other Transaction
Documents to which the Indenture Trustee is a party.

 

(c)           The
Indenture Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:

 

(i)            this paragraph does not limit the effect of Section 6.01(b);

 

(ii)           the
Indenture Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer unless it is proved that the Indenture Trustee
was negligent in ascertaining the pertinent facts; and

 

(iii)          the Indenture Trustee shall not be liable with respect to
any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 5.12.

 

(d)           Every
provision of this Indenture that in any way relates to the Indenture Trustee is
subject to paragraphs (a), (b) and (c) of this Section.

 

(e)           The
Indenture Trustee shall not be liable for interest on any money received by it
except as the Indenture Trustee may agree in writing with the Issuer.

 

(f)            Money
held in trust by the Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this Indenture or the Sale
and Servicing Agreement.

 

(g)           No
provision of this Indenture shall require the Indenture Trustee to expend or
risk its own funds or otherwise incur financial liability in the performance of
any of its duties hereunder or in the exercise of any of its rights or powers,
if it shall have reasonable grounds to believe that repayments of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

 

(h)           The
Indenture 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 this Indenture.

 

(i)            Every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Indenture Trustee shall be subject to the
provisions of this section and to the provisions of the TIA.

 

38

 

Section 6.02.        Rights of Indenture Trustee.

 

(a)           The
Indenture Trustee may rely on any document believed by it to be genuine and to
have been signed or presented by the proper person. The Indenture Trustee need
not investigate any fact or matter stated in the document.

 

(b)           Before
the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate (with respect to factual matters) or an Opinion of Counsel, as
applicable.  The Indenture Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on the Officer’s Certificate or Opinion of Counsel.

 

(c)           The
Indenture Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through Affiliates, agents or
attorneys or a custodian or nominee, and the Indenture Trustee shall not be
responsible for any misconduct or negligence on the part of, or for the
supervision of, any such agent, attorney, custodian or nominee appointed with
due care by it hereunder.

 

(d)           The
Indenture Trustee shall not be liable for any action it takes or omits to take
in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Indenture Trustee’s conduct does not
constitute willful misconduct, negligence or bad faith.

 

(e)           The
Indenture Trustee may consult with counsel, and the advice of such counsel or
any Opinion of Counsel with respect to legal matters relating to this Indenture
and the Notes shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder
in good faith and in accordance with such advice or Opinion of Counsel.

 

(f)            The
Indenture Trustee shall be under no obligation to institute, conduct or defend
any litigation under this Indenture or in relation to this Indenture, at the
request, order or direction of any of the Holders of Notes, pursuant to the
provisions of this Indenture, unless such Holders of Notes shall have offered
to the Indenture Trustee reasonable security or indemnity against the costs,
expenses and liabilities that may be incurred therein or thereby; provided,
however, that the Indenture Trustee shall, upon the occurrence of an Event of
Default (that has not been cured), exercise the rights and powers vested in it
by this Indenture in a manner consistent with Section 6.01.

 

(g)           The
Indenture Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document, unless so requested by the Holders of Notes evidencing not less
than 25% of the Outstanding Amount of the Notes; provided, however, that if the
payment within a reasonable time to the Indenture Trustee of the costs, expenses  or liabilities likely to be incurred by it in
the making of such investigation is, in the opinion of the Indenture Trustee,
not reasonably assured to the Indenture Trustee by the security afforded to it
by the terms of this Indenture or the Sale and Servicing Agreement, the
Indenture Trustee may require reasonable indemnity against such cost, expense
or liability as a condition to so proceeding; the reasonable expense of every
such examination shall be paid by the Person making such

 

39

 

request,
or, if paid by the Indenture Trustee, shall be reimbursed by the Person making
such request upon demand.

 

Section 6.03.        Individual Rights of Indenture Trustee.  The Indenture Trustee in its individual or
any other capacity may become the owner or pledgee of Notes and may otherwise
deal with the Issuer or its Affiliates with the same rights it would have if it
were not Indenture Trustee.  Any Paying
Agent, Note Registrar, co-registrar or co-paying agent may do the same with
like rights.  However, the Indenture
Trustee is required to comply with Section 6.11.

 

Section 6.04.        Indenture Trustee’s Disclaimer.  The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture, the Collateral or the Notes, it shall not be accountable for
the Issuer’s use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Issuer in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee’s certificate of authentication.

 

Section 6.05.        Notice of Defaults.  If a Default occurs and is continuing and if
it is known to a Responsible Officer of the Indenture Trustee, the Indenture
Trustee shall mail to each Noteholder notice of the Default within 90 days
after it occurs.  Except in the case of a
Default in payment of principal of or interest on any Note (including payments
pursuant to the redemption of such Notes), the Indenture Trustee may withhold
the notice if and so long as a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interests of
Noteholders.

 

Section 6.06.        Reports by Indenture Trustee to Holders.  Within the prescribed period of time for tax
reporting purposes after the end of each calendar year during the term of this
Indenture, the Indenture Trustee shall deliver to each Noteholder such
information, including without limitation, IRS Form 1099, as may be
required by applicable law to enable such holder to prepare its federal and
state income tax returns.

 

Section 6.07.        Compensation and Indemnity.  The Issuer shall pay or shall cause the
Administrator to pay to the Indenture Trustee from time to time reasonable
compensation for its services.  The
Indenture Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Issuer shall or shall cause the Administrator to reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services.  Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee’s agents, counsel, accountants and experts.  The Issuer shall indemnify or shall cause the
Administrator to indemnify the Indenture Trustee against any and all loss,
liability or expense (including attorneys’ fees) incurred by it in connection
with the administration of this trust and the performance of its duties
hereunder.  The Indenture Trustee shall
notify the Issuer and the Administrator promptly of any claim for which it may
seek indemnity.  Failure by the Indenture
Trustee to so notify the Issuer and the Administrator shall not relieve the
Issuer or the Administrator of its obligations hereunder.  The Issuer shall defend or shall cause the
Administrator to defend any such claim, and the Indenture Trustee may have
separate counsel and the Issuer shall

 

40

 

pay or shall cause the Administrator to pay the fees and
expenses of such counsel.  Neither the
Issuer nor the Administrator need reimburse any expense or indemnify against
any loss, liability or expense incurred by the Indenture Trustee through the
Indenture Trustee’s own willful misconduct, negligence or bad faith.

 

The Issuer’s payment obligations and indemnification
to the Indenture Trustee pursuant to this Section shall survive the
resignation or removal of the Indenture Trustee and the termination and
discharge of this Indenture; provided that the Indenture Trustee shall be
entitled only to compensation for its services for the period prior to the date
of such resignation or removal of the Indenture Trustee.  When the Indenture Trustee incurs expenses
after the occurrence of an Event of Default specified in Section 5.01(iv) or
(v) with respect to the Issuer, the expenses are intended to constitute
expenses of administration under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or similar law.

 

Section 6.08.        Replacement of Indenture Trustee.  The Indenture Trustee may resign at any time
by so notifying the Issuer and the Servicer. 
The Issuer shall remove the Indenture Trustee if:

 

(i)            the
Indenture Trustee fails to comply with Section 6.11;

 

(ii)           a court having jurisdiction in the
premises in respect of the Indenture Trustee in an involuntary case or
proceeding under federal or state banking or bankruptcy laws, as now or
hereafter constituted, or any other applicable federal or state bankruptcy,
insolvency or other similar law, shall have entered a decree or order granting
relief or appointing a receiver, liquidator, assignee, custodian, trustee,
conservator, sequestrator (or similar official) for the Indenture Trustee or
for any substantial part of the Indenture Trustee’s property, or ordering the
winding-up or liquidation of the Indenture Trustee’s affairs, provided any such
decree or order shall have continued unstayed and in effect for a period of 30
consecutive days;

 

(iii)          the Indenture Trustee commences a
voluntary case under any federal or state banking or bankruptcy laws, as now or
hereafter constituted, or any other applicable federal or state bankruptcy, insolvency
or other similar law, or consents to the appointment of or taking possession by
a receiver, liquidator, assignee, custodian, trustee, conservator, sequestrator
or other similar official for the Indenture Trustee or for any substantial part
of the Indenture Trustee’s property, or makes any assignment for the benefit of
creditors or fails generally to pay its debts as such debts become due or takes
any corporate action in furtherance of any of the foregoing; or

 

(iv)          the Indenture
Trustee otherwise becomes incapable of acting.

 

If the Indenture Trustee resigns or is removed, the
Issuer shall promptly appoint a successor Indenture Trustee.  A successor Indenture Trustee shall deliver a
written acceptance of its appointment to the retiring Indenture Trustee and to
the Issuer.  Thereupon the resignation or
removal of the retiring Indenture Trustee shall become effective, and the
successor Indenture Trustee shall have all the rights, powers and duties of the
Indenture

 

41

 

Trustee under this
Indenture.  The
Issuer or the successor Indenture Trustee shall mail a notice of its succession
to Noteholders.  The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

 

If a successor Indenture Trustee does not take office
within 60 days after the retiring Indenture Trustee resigns or is removed, the
retiring Indenture Trustee, the Issuer or the Holders of a majority in
Outstanding Amount of the Notes may appoint or petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee.

 

If the Indenture Trustee fails to comply with Section 6.11,
any Noteholder may petition any court of competent jurisdiction for the removal
of the Indenture Trustee and the appointment of a successor Indenture Trustee.

 

Any resignation or removal of the Indenture Trustee
and appointment of a successor Indenture Trustee pursuant to any of the
provisions of this Section shall not become effective until acceptance of
appointment by the successor Indenture Trustee pursuant to this Section and
payment of all fees and expenses owed to the outgoing Indenture Trustee.  Notwithstanding the replacement of the
Indenture Trustee pursuant to this Section, the retiring Indenture Trustee
shall be entitled to payment or reimbursement of such amounts as such Person is
entitled pursuant to Section 6.07.

 

Section 6.09.        Successor Indenture Trustee by Merger.  If the Indenture Trustee consolidates with,
merges or converts into, or transfers all or substantially all its corporate
trust business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee; provided, that such corporation or banking
association shall be otherwise qualified and eligible under Section 6.11.  The Indenture Trustee shall provide each
Rating Agency prompt notice of any such transaction.

 

In case at the time such successor or successors by
merger, conversion or consolidation to the Indenture Trustee shall succeed to
the trusts created by this Indenture, any of the Notes shall have been
authenticated but not delivered, any such successor to the Indenture Trustee
may adopt the certificate of authentication of any predecessor Indenture
Trustee, and deliver such Notes so authenticated; and in case at that time any
of the Notes shall not have been authenticated, any successor to the Indenture
Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Indenture Trustee; and in all
such cases such certificates shall have the full force which it is anywhere in
the Notes or in this Indenture provided that the certificate of the Indenture
Trustee shall have.

 

Section 6.10.        Appointment of Co-Indenture Trustee or
Separate Indenture Trustee.

 

(a)           Notwithstanding
any other provision of this Indenture, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which any part of the Collateral
may at the time be located, the Indenture Trustee and the Administrator acting
jointly shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-Indenture Trustee or co-Indenture
Trustees, jointly with the

 

42

 

Indenture Trustee,
or separate Indenture Trustee or separate Indenture Trustees, of all or any
part of the Trust, and to vest in such Person or Persons, in such capacity and
for the benefit of the Noteholders, such title to the Collateral, or any part
hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Indenture Trustee and the
Administrator 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 Indenture Trustee alone shall have the power to make such appointment.  No co-Indenture Trustee or separate Indenture
Trustee hereunder shall be required to meet the terms of eligibility of a
successor Indenture Trustee under Section 6.11 and no notice to
Noteholders of the appointment of any co-Indenture Trustee or separate
Indenture Trustee shall be required under Section 6.08.

 

(b)           Every
separate Indenture Trustee and co-Indenture Trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

 

(i)            all
rights, powers, duties and obligations conferred or imposed upon the Indenture
Trustee shall be conferred or imposed upon and exercised or performed by the
Indenture Trustee and such separate Indenture Trustee or co-Indenture Trustee
jointly (it being understood that such separate Indenture Trustee or
co-Indenture Trustee is not authorized to act separately without the Indenture
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
Indenture 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 or any portion thereof in any such jurisdiction)
shall be exercised and performed singly by such separate Indenture Trustee or
co-Indenture Trustee, but solely at the direction of the Indenture Trustee;

 

(ii)           no Indenture Trustee hereunder shall be personally liable by
reason of any act or omission of any other Indenture Trustee hereunder; and

 

(iii)          the Indenture Trustee and the Administrator may at any time
accept the resignation of or remove any separate Indenture Trustee or
co-Indenture Trustee.

 

(c)           Any
notice, request or other writing given to the Indenture Trustee shall be deemed
to have been given to each of the then separate Indenture Trustees and
co-Indenture Trustees, as effectively as if given to each of them.  Every instrument appointing any separate
Indenture Trustee or co-Indenture Trustee shall refer to this Agreement and the
conditions of this Article.  Each
separate Indenture Trustee and co-Indenture Trustee, upon its acceptance of the
trusts conferred, shall be vested with the estates or property specified in its
instrument of co-appointment, either jointly with the Indenture Trustee or
separately, as may be provided therein, subject to all the provisions of this
Indenture, specifically including every provision of this Indenture relating to
the conduct of, affecting the liability of or affording protection to, the
Indenture Trustee.  Every such instrument
shall be filed with the Indenture Trustee and a copy thereof given to the
Administrator.

 

43

 

(d)           Any
separate Indenture Trustee or co-Indenture Trustee may at any time constitute
the Indenture Trustee, 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 Indenture Trustee or co-Indenture
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 Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor Indenture Trustee.  Notwithstanding anything to the contrary in
this Indenture, the appointment of any separate Indenture Trustee or
co-Indenture Trustee shall not relieve the Indenture Trustee of its obligations
and duties under this Indenture.

 

Section 6.11.        Eligibility.

 

(a)           The
Indenture Trustee shall at all times satisfy the requirements of TIA
§310(a).  The Indenture Trustee hereunder
shall at all times be a financial institution organized and doing business
under the laws of the United States of America or any state, authorized under
such laws to exercise corporate trust powers. 
The Indenture Trustee or its parent shall have a long term unsecured
debt rating of at least Baa3 by Moody’s and shall have a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
federal or state authority, provided that the Indenture Trustee’s separate
capital and surplus shall at all times be at least the amount required by Section 310(a)(2) of the TIA. 
If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of a supervising or examining authority,
then for the purposes of this Section 6.ll, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published.

 

(b)           If
a Default occurs and is continuing and the Indenture Trustee is deemed to have
a “conflicting interest” (as defined in the TIA) as a result of acting as trustee
for both the Class A-1 Notes and the Class A-2 Notes and
the Class B Notes, the Issuer shall appoint a successor Indenture Trustee
for the Class A-1 Notes and the Class A-2 Notes and a
successor Indenture Trustee for the Class B Notes so that there will be
separate Indenture Trustees for the Class A-1 Notes and the Class A-2
Notes on the one hand, and for the Class B Notes on the other hand.  No such event shall alter the voting rights
of the Noteholders under this Indenture or under any of the other Transaction
Documents.

 

(c)           In
the case of an appointment hereunder of a successor Indenture Trustee with
respect to any Class of Notes, the Issuer, the retiring Indenture Trustee
and the successor Indenture Trustee with respect to such Class of Notes
shall execute and deliver an indenture supplement hereto wherein the successor
Indenture Trustee shall accept such appointment and which (i) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, the successor Indenture Trustee all rights, powers,
trusts and duties of the retiring Indenture Trustee with respect to the Notes
of such Class as to which the appointment of such Indenture Trustee
relates, (ii) if the retiring Indenture Trustee is not retiring with
respect to all Classes of Notes, shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Indenture Trustee with respect to the Notes of each Class as
to which the retiring Indenture Trustee is not retiring shall continue to be
vested in the retiring

 

44

 

Indenture Trustee
and (iii) shall add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Indenture Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such
Indenture Trustees co-trustees of the same trust and that each such Indenture
Trustee; and upon execution and delivery of such supplemental indenture the
resignation or removal of the retiring Indenture Trustee shall become effective
to the extent provided therein.

 

(d)           In
case at any time the Indenture Trustee shall cease to be eligible in accordance
with the provisions of this Section 6.11, the Indenture Trustee shall
resign immediately in the manner and with the effect specified in Section 6.08.  The Indenture Trustee shall comply with TIA
§310(b); provided, however, that there shall be excluded from the operation of
TIA §310(b)(1) any indenture or indentures under which other securities of
the Issuer are outstanding if the requirements for such exclusion set forth in
TIA §310(b)(1) are met.

 

Section 6.12.        Pennsylvania Motor Vehicle Sales Finance Act Licenses.  The
Indenture 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 this Indenture and the transactions contemplated hereby until
the lien and security interest of this Indenture shall no longer be in effect
in accordance with the terms hereof.

 

Section 6.13.        Preferential Collection of Claims Against
Issuer. 
The Indenture Trustee shall comply with TIA §311(a), excluding any
creditor relationship listed in TIA §311(b). 
An Indenture Trustee who has resigned or been removed shall be subject
to TIA §311(a) to the extent indicated.

 

ARTICLE SEVEN

 

NOTEHOLDERS’ LISTS AND
REPORTS

 

Section 7.01.        Issuer to Furnish Indenture Trustee Names
and Addresses of Noteholders.  The Issuer
will furnish or cause to be furnished to the Indenture Trustee (i) not
more than five days after the earlier of (a) each Record Date and (b) three
months after the last Record Date, a list, in such form as the Indenture
Trustee may reasonably require, of the names and addresses of the Noteholders
as of such Record Date and (ii) at such other times as the Indenture
Trustee may request in writing, within 30 days after receipt by the Issuer of
any such request, a list of similar form and content as of a date not more than
ten days prior to the time such list is furnished; provided, however, that so
long as the Indenture Trustee is the Note Registrar, no such list shall be
required to be furnished.

 

Section 7.02.        Preservation of Information: Communication to Noteholders.

 

(a)           The
Indenture Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Noteholders contained in the most
recent list furnished to the Indenture Trustee as provided in Section 7.01
and the names and addresses of Noteholders received by the Indenture Trustee in
its capacity as Note Registrar and shall

 

45

 

otherwise
comply with TIA §312(a).  The Indenture
Trustee may destroy any list furnished to it as provided in such Section 7.01
upon receipt of a new list so furnished.

 

(b)           Noteholders
may communicate pursuant to TIA § 312(b) with other Noteholders with
respect to their rights under this Indenture or under the Notes.

 

(c)           The
Issuer, the Indenture Trustee and the Note Registrar shall have the protection
of TIA § 312(c).

 

Section 7.03.        Reports by Issuer.

 

(a)           The
Issuer shall:

 

(i)            file
with the Indenture Trustee, within 15 days after the Issuer is required (if at
all) to file the same with the Commission, copies of the annual reports and of
the information, documents and other reports (or copies of such portions of any
of the foregoing as the Commission may from time to time by rules and
regulations prescribe) that the Issuer may be required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act;

 

(ii)           file
with the Indenture Trustee and the Commission in accordance with rules and
regulations prescribed from time to time by the Commission such additional
information, documents and reports with respect to compliance by the Issuer
with the conditions and covenants of this Indenture as may be required from
time to time by such rules and regulations;

 

(iii)          supply
to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to
all Noteholders described in TIA §313(c)) such summaries of any information,
documents and reports required to be filed by the Issuer pursuant to clauses (i) and
(ii) of this Section 7.03(a) and by rules and regulations
prescribed from time to time by the Commission.

 

(b)           Unless
the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31
of each year.

 

Section 7.04.        Reports by Indenture Trustee.  If required by TIA §313(a), within 60 days
after each January 31st beginning with January 31, 2006,
the Indenture Trustee shall mail to each Noteholder as required by TIA §313(c) a
brief report dated as of such date that complies with TIA §313(a).  The Indenture Trustee also shall comply with
TIA §313(b).

 

A copy of each report at the time of its mailing to
Noteholders shall be filed by the Indenture Trustee with the Commission and
each stock exchange, if any, on which the Notes are listed.  The Issuer shall notify the Indenture Trustee
if and when the Notes are listed on any stock exchange.

 

46

 

ARTICLE EIGHT

ACCOUNTS, DISBURSEMENTS AND RELEASES

 

Section 8.01.        Collection of Money.  Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect, directly and without intervention or assistance of any
fiscal agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture and the Sale and
Servicing Agreement.  The Indenture
Trustee shall apply all such money received by it as provided in this Indenture
and the Sale and Servicing Agreement. 
Except as otherwise expressly provided in this Indenture, if any default
occurs in the making of any payment or performance under any agreement or
instrument that is part of the Collateral, the Indenture Trustee may take such
action as may be appropriate to enforce such payment or performance, including
the institution and prosecution of appropriate Proceedings.  Any such action shall be without prejudice to
any right to claim a Default or Event of Default under this Indenture and any
right to proceed thereafter as provided in Article Five.

 

Section 8.02.        Trust Accounts.

 

(a)           On
or prior to the Closing Date, the Issuer shall cause the Servicer to establish
and maintain, in the name of the Indenture Trustee, for the benefit of the
Noteholders and the Certificateholders, the Trust Accounts as provided in Section 5.05
of the Sale and Servicing Agreement.

 

(b)           All
Available Monies with respect to each Due Period will be deposited in the
Collection Account as provided in Section 5.05 of the Sale and Servicing
Agreement.  On or before each Distribution
Date, all amounts required to be deposited in the Note Distribution Account
with respect to the preceding Due Period pursuant to Section 7.05 of the
Sale and Servicing Agreement will be transferred from the Collection Account
and/or the Reserve Account to the Note Distribution Account.

 

(c)           On
each Distribution Date, the Indenture Trustee shall distribute all amounts on
deposit in the Note Distribution Account to Noteholders in respect of the Notes
to the extent of amounts due and unpaid on the Notes for principal and interest
in the order and priority set forth in Section 7.05 of the Sale and
Servicing Agreement.

 

Section 8.03.        General Provisions Regarding Accounts.

 

(a)           So
long as no Default or Event of Default shall have occurred and be continuing,
all or a portion of the funds in the Trust Accounts shall be invested in
accordance with the provisions of Section 5.05 of the Sale and Servicing
Agreement.  Except as otherwise provided
in Section 5.05 of the Sale and Servicing Agreement, all income or other
gain from investments of moneys deposited in such Trust Accounts (other than
the Reserve Fund and the Pre-Funding Account) shall be deposited by the
Indenture Trustee in the Collection Account, and any loss resulting from such
investments shall be charged to the related Trust Account.  The Issuer will not direct the Indenture
Trustee to

 

47

 

make any
investment of any funds or to sell any investment held in any of the Trust
Accounts unless the security interest granted and perfected in such account
will continue to be perfected in such investment or the proceeds of such sale,
in either case without any further action by any Person, and, in connection
with any direction to the Indenture Trustee to make any such investment or
sale, if requested by the Indenture Trustee, the Issuer shall deliver to the
Indenture Trustee an Opinion of Counsel, acceptable to the Indenture Trustee,
to such effect.

 

(b)           Subject
to Section 6.01(c), the Indenture Trustee shall not in any way be held
liable by reason of any insufficiency in any of the  Trust Accounts resulting from any loss
on any Eligible Investment included therein except for losses attributable to
the Indenture Trustee’s failure to make payments on such Eligible Investments
issued by the Indenture Trustee, in its commercial capacity as principal
obligor and not as Indenture Trustee, in accordance with their terms.

 

(c)           If (i) the
Issuer shall have failed to give investment directions for any funds on deposit
in the Trust Accounts to the Indenture Trustee by 11:00 a.m., New York
City time (or such other time as may be agreed by the Issuer and Indenture
Trustee), on any Business Day or (ii) a Default or Event of Default shall
have occurred and be continuing with respect to the Notes but the Notes shall
not have been declared due and payable pursuant to Section 5.02 or (iii) if
such Notes shall have been declared due and payable following an Event of
Default, but amounts collected or receivable from the Collateral are being
applied in accordance with Section 5.05 as if there had not been such a
declaration, then the Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Trust Accounts in one or more
Eligible Investments satisfying the requirements of clause (d) of the
definition thereof.

 

Section 8.04.        Release of Collateral.

 

(a)           Subject
to the payment of its fees and expenses pursuant to Section 6.07, the
Indenture Trustee may, and when required by the provisions of this Indenture or
the Sale and Servicing Agreement shall, execute instruments to release property
from the lien of this Indenture, or convey the Indenture Trustee’s interest in
the same, in a manner and under circumstances that are not inconsistent with
the provisions of this Indenture.  No
party relying upon an instrument executed by the Indenture Trustee as provided
in this Article shall be bound to ascertain the Indenture Trustee’s
authority, inquire into the satisfaction of any conditions precedent or see to
the application of any moneys.

 

(b)           The
Indenture Trustee shall, at such time as there are no Notes Outstanding and all
sums due the Indenture Trustee pursuant to Section 6.07 have been paid,
release any remaining portion of the Collateral that secured the Notes from the
lien of this Indenture and release to the Issuer or any other Person entitled
thereto any funds then on deposit in the Trust Accounts.  The Indenture Trustee shall release property
from the lien of this Indenture pursuant to this Section 8.04(b) only
upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an
Opinion of Counsel and (if required by the TIA as so stated in the Opinion of
Counsel) Independent Certificates in accordance with TIA §§314(c) and
314(d)(1) meeting the applicable requirements of Section 11.01.

 

48

 

Section 8.05.        Opinion of Counsel.  The Indenture Trustee shall receive at least
seven days notice when requested by the Issuer to take any action pursuant to Section 8.04(a),
accompanied by copies of any instruments involved, and the Indenture Trustee
shall also require, as a condition to such action, an Opinion of Counsel, in
form and substance satisfactory to the Indenture Trustee, stating the legal
effect of any such action, outlining the steps required to complete the same,
and concluding that all conditions precedent to the taking of such action have
been complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the
provisions for this Indenture; provided, however, that such Opinion of Counsel
shall not be required to express an opinion as to the fair value of the
Collateral.  Counsel rendering any such
opinion may rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.

 

ARTICLE NINE

SUPPLEMENTAL INDENTURES

 

Section 9.01.        Supplemental Indentures Without Consent
of Noteholders.

 

(a)           Without
the consent of the Holders of any Notes and with prior notice to each Rating
Agency, the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, and the other parties hereto at any time from time to time, may enter
into one or more indentures supplemental hereto (which shall conform to the
provisions of the TIA as in force at the date of the execution thereof), in
form satisfactory to the Indenture Trustee, for any of the following purposes:

 

(i)            to
correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the
Indenture Trustee any property subject or required to be subjected to the lien
created by this Indenture, or to subject additional property to the lien
created by this Indenture;

 

(ii)           to evidence the succession, in compliance with the
applicable provisions hereof, of another Person to the Issuer, and the
assumption by any such successor of the covenants of the Issuer herein and in
the Notes contained;

 

(iii)          to add to the covenants of the Issuer, for the benefit of
the Holders of the Notes, or to surrender any right or power herein conferred
upon the Issuer;

 

(iv)          to convey, transfer, assign, mortgage or pledge any property
to or with the Indenture Trustee;

 

(v)           to
cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision
herein, in any supplemental indenture, in the Transaction Documents or in

 

49

 

the Prospectus or to add any other provisions with
respect to matters or questions arising under this Indenture, in any
supplemental indenture, in the Transaction Documents or in the Prospectus;
provided that such action shall not adversely affect the interests of the
Holders of the Notes;

 

(vi)          to
evidence and provide for the acceptance of the appointment hereunder by a
successor Indenture Trustee with respect to the Notes and to add to or change
any of the provisions of this Indenture as shall be necessary to facilitate the
administration of the trusts hereunder by more than one Indenture Trustee,
pursuant to the requirements of Article Six;

 

(vii)         to
modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the TIA
or under any similar federal statute hereafter enacted and to add to this
Indenture such other provisions as may be expressly required by the TIA; and

 

(viii)        to elect into the FASIT provisions of the Code, provided an
Opinion of Counsel to the effect that such election will not adversely affect
the Noteholders, is delivered to the Issuer and Indenture Trustee.

 

The Indenture Trustee is hereby authorized to join in
the execution of any such supplemental indenture and to make any further
appropriate agreements and stipulations that may be therein contained.

 

(b)           The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes and with prior notice to
each Rating Agency, enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided,
however, that such action shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Noteholder.

 

Section 9.02.        Supplemental Indentures With Consent
of Noteholders. 
The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, with the consent of the Required Holders, by Act of such Holders
delivered to the Issuer and the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Note affected thereby:

 

(i)            change the date of payment of any
installment of principal of or interest on any Note, or reduce the principal
amount thereof, the interest rate thereon or the Redemption Date Amount with
respect thereto, change the provisions of this Indenture relating to the
application of collections on, or the proceeds of the sale of, the Collateral
to payment of principal of or interest on the Notes, or change any place of
payment where, or the coin or currency in which, any Note or the interest
thereon is payable, or impair the right

 

50

 

to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article Five, to the payment of any such amount
due on the Notes on or after the respective due dates thereof (or, in the case
of redemption, on or after the 
Redemption Date);

 

(ii)           reduce the percentage of the
Outstanding Amount of the Notes, the consent of the Holders of which is
required for any such supplemental indenture, or the consent of the Holders of
which is required for any waiver of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences provided for in
this Indenture;

 

(iii)          modify or
alter the provisions of the second proviso to the definition of the term “Outstanding”;

 

(iv)          reduce the percentage of the
Outstanding Amount of the Notes required to direct the Indenture Trustee to
sell or liquidate the Collateral pursuant to Section 5.04 or amend the
provisions of this Article which specify the percentage of the Outstanding
Amount of the Notes required to amend this Indenture or the other Transaction
Documents;

 

(v)           modify any provision of this Section except
to increase any percentage specified herein or to provide that certain
additional provisions of this Indenture or the other Transaction Documents
cannot be modified or waived without the consent of the Holder of each
Outstanding Note affected thereby; or

 

(vi)          permit the creation of any lien
ranking prior to or on a parity with the lien created by this Indenture with
respect to any part of the Collateral or, except as otherwise permitted or
contemplated herein, terminate the lien created by this Indenture on any
property at any time subject hereto or deprive the Holder of any Note of the security
provided by the lien created by this Indenture.

 

The Indenture Trustee may in its discretion determine
whether or not any Notes would be affected by any supplemental indenture and
any such determination shall be conclusive upon the Holders of the Notes,
whether theretofore or thereafter authenticated and delivered hereunder.  The Indenture Trustee shall not be liable for
any such determination made in good faith.

 

It shall not be necessary for any Act of Noteholders
under this Section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

 

Promptly after the execution by the parties hereto of
any supplemental indenture pursuant to this Section, the Indenture Trustee
shall mail to the Holders of the Notes to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture.  Any failure of
the Indenture Trustee to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

 

51

 

Section 9.03.        Execution of Supplemental Indentures.  In executing, or permitting the additional
trusts created by, any supplemental indenture permitted by this Article or
the modifications thereby of the trusts created by this Indenture, the
Indenture Trustee shall be entitled to receive, and subject to Sections 6.01
and 6.02 shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture.  The
Indenture Trustee may, but shall not be obligated to, enter into any such
supplemental indenture that affects the Indenture Trustee’s own rights, duties,
liabilities or immunities under this Indenture or otherwise.

 

Section 9.04.        Effect of Supplemental Indenture.  Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be
deemed to be modified and amended in accordance therewith with respect to the
Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the parties
hereto and the Holders of the Notes shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

 

Section 9.05.        Conformity With Trust Indenture Act.  Every
amendment of this Indenture and every supplemental indenture executed pursuant
to this Article shall conform to the requirements of the Trust Indenture
Act as then in effect so long as this Indenture shall then be qualified under
the Trust Indenture Act.

 

Section 9.06.        Reference in Notes to Supplemental
Indentures.  Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture
Trustee as to any matter provided for in such supplemental indenture.  If the Issuer or the Indenture Trustee shall
so determine, new notes so modified as to conform, in
the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

 

ARTICLE TEN

REDEMPTION OF NOTES

 

Section 10.01.      Redemption.

 

(a)           In
the event that the Seller pursuant to Section 7.10 of the Sale and
Servicing Agreement purchases the corpus of the Trust, the Notes are subject to
redemption in whole, but not in part, on the Distribution Date on which such
repurchase occurs, for a purchase price equal to the outstanding principal, and
accrued interest on the Notes; provided, however, that the Issuer has available
funds sufficient to pay such amounts. 
Seller, the Servicer or the Issuer shall

 

52

 

furnish
each Rating Agency notice of such redemption. 
If the Notes are to be redeemed pursuant to this Section 10.01(a),
the Servicer or the Issuer shall furnish notice of such election to the
Indenture Trustee not later than 20 days prior to the Redemption Date and the
Issuer shall deposit with the Indenture Trustee in the Note Distribution
Account the Redemption Price of the Notes to be redeemed whereupon all such
Notes shall be due and payable on the Redemption Date upon the furnishing of a
notice complying with Section 10.02 to each Holder of the Notes.

 

(b)           In
the event that the assets of the Trust are sold pursuant to Section 5.03(b) of
this Indenture, the proceeds of such sale shall be distributed as provided in Section 5.06.  If amounts are to be paid to Noteholders
pursuant to this Section 10.01(b), the Servicer or the Issuer shall, to
the extent practicable, furnish notice of such event to the Indenture Trustee
not later than 20 days prior to the Redemption Date whereupon all such amounts
shall be payable on the Redemption Date.

 

(c)           If
(x) the Pre-Funded Amount has not been reduced to zero on the Distribution Date
on which the Funding Period ends (or, if the Funding Period does not end on a
Distribution Date, on the first Distribution Date following the end of the
Funding Period) or (y) the Pre-Funded Amount has been reduced to $150,000
or less on any Distribution Date, in either case after giving effect to any
reductions in the Pre-Funded Amount on such Distribution Date pursuant to Section 7.07
of the Sale and Servicing Agreement, one or more classes of Notes then
outstanding will be redeemed, in whole or in part, as described in Section 7.07(c) of
the Sale and Servicing Agreement, in a principal amount described therein.

 

Section 10.02.      Form of Redemption Notice.

 

(a)           Notice
of redemption under Section 10.01(a) shall be given by the Indenture
Trustee by first-class mail, postage prepaid, mailed not less than five days
prior to the applicable Redemption Date to each Holder of Notes, as of the
close of business on the Record Date preceding the applicable Redemption Date,
at such Holder’s address appearing in the Note Register.

 

All notices of redemption shall state:

 

(i)            the
Redemption Date;

 

(ii)           the
Redemption Date Amount; and

 

(iii) the place where such Notes are to be surrendered for payment
of the Redemption Date Amount (which shall be the office or agency of the
Issuer to be maintained as provided in Section 3.02).

 

Notice of redemption of the Notes shall be given by
the Indenture Trustee in the name and at the expense of the Issuer.  Failure to give notice of redemption, or any
defect therein, to any Holder of any Note shall not impair or affect the
validity of the redemption of any other Note.

 

(b)           Prior
notice of redemption under Section 10.01(b) or 10.01(c) is not
required to be given to Noteholders.

 

53

 

Section 10.03.      Notes Payable on Redemption Date.  The Notes or portions thereof to be redeemed
shall, following notice of redemption (if any) as required by Section 10.02,
on the Redemption Date become due and payable at the Redemption Date Amount and
(unless the Issuer shall default in the payment of the Redemption Date Amount)
no interest shall accrue on the Redemption Date Amount for any period after the
date to which accrued interest is calculated for purposes of calculating the
Redemption Date Amount.

 

ARTICLE ELEVEN

 

MISCELLANEOUS

 

Section 11.01.      Compliance Certificates
and Opinions, etc.

 

(a)           Upon
any application or request by the Issuer to the Indenture Trustee to take any
action under any provision of this Indenture, the Issuer shall furnish to the
Indenture Trustee (i) an Officer’s Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in
the opinion of such counsel all such conditions precedent, if any, have been
complied with, and (iii) (if required by the TIA as so stated in the
Opinion of Counsel) an Independent Certificate from a firm of certified public
accountants meeting the applicable requirements of this Section and TIA
§314(c), except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture, no additional certificate or opinion need be
furnished.  No additional certificate or
opinion need be furnished.

 

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

 

(i)            a statement that each signatory of such certificate or
opinion has read or has caused to be read such covenant or condition and the
definitions herein relating thereto;

 

(ii)           a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

 

(iii)          a
statement that, in the opinion of each such signatory, such signatory has made
such examination or investigation as is necessary to enable such signatory to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 

(iv)          a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with.

 

54

 

(b)           (i)            Prior to the deposit of any
Collateral or other property or securities with the Indenture Trustee that is
to be made the basis for authentication and delivery of the Notes or the
release of any property subject to the lien created by this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.01(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of the signer thereof such
certificate as to the fair value (within 90 days of such deposit) to the Issuer
of the Collateral or other property or securities to be so deposited.

 

(ii)           Whenever the Issuer is required to
furnish to the Indenture Trustee an Officer’s Certificate certifying or stating
the opinion of any signer thereof as to 
the matters described in clause (i) above, the Issuer shall also
deliver to the Indenture Trustee an Independent Certificate as to the named
matters, if the fair value to the Issuer of the property to be so deposited and
of all other such property made the basis of any such withdrawal or release
since the commencement of the then-current fiscal year of the Issuer, as set
forth in the certificates delivered pursuant to clause (i) above and this
clause (ii), is 10% or more of the Outstanding Amount of the Notes, but such a
certificate need not be furnished with respect to any property so deposited, if
the fair value thereof to the Issuer as set forth in the related Officer’s
Certificate is less than $25,000 or less than one percent of the Outstanding
Amount of the Notes.

 

(iii)          Other than with respect to any release
described in clause (A) or (B) of Section 11.01(b)(v), whenever
any property or securities are to be released from the lien created by this
Indenture, the Issuer shall also furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days of such release) of the
property or securities proposed to be released and stating that in the opinion
of such person the proposed release will not impair the security created by
this Indenture in contravention of the provisions hereof.

 

(iv)          Whenever the Issuer is required to
furnish to the Indenture Trustee an Officer’s Certificate certifying or stating
the opinion of any signer thereof as to the matters described in clause (iii) above,
the Issuer shall also furnish to the Indenture Trustee an Independent
Certificate as to the same matters if the fair value of the property or
securities and of all other property or securities (other than property
described in clauses (A) or (B) of Section 11.01(b)(v)) released
from the lien created by this Indenture since the commencement of the then
current fiscal year, as set forth in the certificates required by clause (iii) above
and this clause (iv), equals 10% or more of the Outstanding Amount of the
Notes, but such certificate need not be furnished in the case of any release of
property or securities if the fair value thereof as set forth in the related
Officer’s Certificate is less than $25,000 or less than one percent of the then
Outstanding Amount of the Notes.

 

(v)           Notwithstanding any other provision
of this Section, the Issuer may, without compliance with the other provisions
of this Section, (A) collect, liquidate, sell or otherwise dispose of the
Contracts as and to the extent permitted or required by the Transaction
Documents, and (B) make cash payments out of the Trust Accounts as and to
the extent permitted or required by the Transaction Documents, so long as the
Issuer shall deliver to the Indenture Trustee every six months, commencing November 1,
2005, an Officer’s Certificate stating that all the dispositions of Collateral
described in clauses (A) or

 

55

 

(B) that occurred during
the preceding six calendar months were in the ordinary course of the Issuer’s
business and that the proceeds thereof were applied in accordance with the
Transaction Documents.

 

Section 11.02.      Form of Documents Delivered to Indenture Trustee.  In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Person as to other matters, and any such Person may certify or given an
opinion as to such matters in one or several documents.

 

Any certificate or opinion of an Authorized Officer of
the Issuer may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. 
Any such certificate of an Authorized Officer or Opinion of Counsel may
be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Servicer, the
Seller or the Issuer, stating that the information with respect to such factual
matters is in the possession of the Servicer, the Seller or the Issuer, unless
such counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

 

Where any Person is required to make, give or execute
two or more applications, requests, consents, certificates, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

 

Whenever in this Indenture, in connection with any
application or certificate or report to the Indenture Trustee, it is provided that
the Issuer shall deliver any document as a condition of the granting of such
application, or as evidence of the Issuer’s compliance with any term hereof, it
is intended that the truth and accuracy, at the time of the granting of such
application or at the effective date of such certificate or report (as the case
may be), of the facts and opinions stated in such document shall in such case
be conditions precedent to the right of the Issuer to have such application
granted or to the sufficiency of such certificate or report.  The foregoing shall not, however, be
construed to affect the Indenture Trustee’s right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article Six.

 

Section 11.03.      Acts of Noteholders.

 

(a)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Noteholders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in
writing; and except as herein otherwise expressly provided such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly

 

56

 

required,
to the Issuer.  Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Noteholders signing such instrument
or instruments.  Proof of execution of
any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 6.01)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section.

 

(b)           The
fact and date of the execution by any person of any such instrument or writing
may be proved in any manner that the Indenture Trustee deems sufficient.

 

(c)           The
ownership of Notes shall be proved by the Note Register.

 

(d)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Notes shall bind the Holder of every Note issued
upon the registration thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Indenture
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

 

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 specified in the Sale and Servicing Agreement
for such recipient.  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.      Notices to Noteholders; Waiver.  Where this Indenture provides for notice to
Noteholders of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and mailed, first-class,
postage prepaid to each Noteholder affected by such event, at his address as it
appears on the Note Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice.  In any case where notice to Noteholders is
given by mail, neither the failure to mail such notice nor any defect in any
notice so mailed to any particular Noteholder shall affect the sufficiency of
such notice with respect to other Noteholders, and any notice that is mailed in
the manner herein provided shall conclusively be presumed to have been duly
given.

 

Where this Indenture provides for notice in any
manner, such notice may be waived in writing by any Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice.  Waivers of
notice by Noteholders shall be filed with the Indenture Trustee but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such a waiver.

 

57

 

In case, by reason of the suspension of regular mail
service as a result of a strike, work stoppage or similar activity, it
shall be impractical to mail notice of any event of Noteholders when such
notice is required to be given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be satisfactory to the Indenture
Trustee shall be deemed to be a sufficient giving of such notice.

 

Where this Indenture provides for notice to the Rating
Agencies, failure to give such notice shall not affect any other rights or
obligations created hereunder, and shall not under any circumstance constitute
a Default or Event of Default.

 

Section 11.06.      Alternate Payment and Notice Provisions.  Notwithstanding any provisions
of this Indenture or any of the Notes to the contrary, the Issuer may enter
into any agreement with any Holder of a Note providing for a method of payment,
or notice by the Indenture Trustee or any Paying Agent to such Holder, that is
different from the methods provided for in this Indenture for such payments or
notices.  The Issuer will furnish to the
Indenture Trustee a copy of each such agreement and the Indenture Trustee will
cause payments to be made and notices to be given in accordance with such
agreements.

 

Section 11.07.      Effect of Headings and Table of Contents.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

Section 11.08.      Successors and Assigns.  All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not.  All
agreements of the Indenture Trustee in this Indenture shall bind its
successors, co-Indenture Trustees and agents.

 

Section 11.09.      Separability.  In case any
provision in this Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

Section 11.10.      Benefits of Indenture.  Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder, and the Noteholders, and any other party secured
hereunder, and any other Person with an ownership interest in any part of the
Collateral, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

 

Section 11.11.      Legal Holidays.  In any case
where the date on which any payment is due shall not be a Business Day, then
(notwithstanding any other provision of the Notes or this Indenture) payment
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the date on which nominally
due, and no interest shall accrue for the period from and after any such
nominal date.

 

Section 11.12.      Governing Law.  THIS
INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES UNDER THE
AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

58

 

Section 11.13.      Counterparts.  This
Indenture 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 11.14.      Recording of Indenture.  If this Indenture is subject to recording in
any appropriate public recording offices, such recording is to be effected by
the Issuer and at its expense accompanied by an Opinion of Counsel (which may
be counsel to the Indenture Trustee or any other counsel reasonably acceptable
to the Indenture Trustee) to the effect that such recording is necessary either
for the protection of the Noteholders or any other Person secured hereunder or
for the enforcement of any right or remedy granted to the Indenture Trustee
under this Indenture.

 

Section 11.15.      Trust Obligation.  No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficiary interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee
or of any successor or assign of the Indenture Trustee or the Owner Trustee in
its individual capacity, except as any such Person may have expressly agreed
(it being understood that the Indenture Trustee and the Owner Trustee have no
such obligations in their individual capacity) and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such
entity.  For all purposes of this
Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article Six, Seven and Eight of the Trust
Agreement.

 

Section 11.16.      No Petition.  The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note or a beneficial interest in
a Note, hereby covenant and agree that they will not at any time institute
against the Trust Depositor or the Issuer, or join in any institution against
the Trust Depositor or the Issuer of, 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 Notes, this Indenture or any of the other
Transaction Documents.

 

Section 11.17.      Inspection.  The Issuer
agrees that, on reasonable prior notice, it will permit any representative of
the Indenture Trustee, during the Issuer’s normal business hours, to examine
all the books of account, records, reports and other papers of the Issuer, to
make copies and extracts therefrom, to cause such books to be audited by
independent certified public accountants, and to discuss the Issuer’s affairs,
finances and accounts with the Issuer’s officers, employees and independent
certified public accountants, all at such reasonable times and as often as may
be reasonably requested, the Indenture Trustee shall and shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential

 

59

 

treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

 

Section 11.18.      Conflict with Trust Indenture Act.  If any provision hereof limits, qualifies or
conflicts with another provision hereof that is required to be included in this
Indenture by any of the provisions of the Trust Indenture Act, such required
provision shall control.

 

The provisions of TIA §§310 through 317 that impose
duties on any person (including the provisions automatically deemed included
herein unless expressly excluded by this Indenture) are a part of and govern
this Indenture, whether or not physically contained herein.

 

Section 11.19.      Disclaimer and Subordination.  Each Noteholder by accepting a Note
acknowledges and agrees that such Note represents a debt obligation of the
Trust Depositor only and does not represent an interest in any assets (other
than the Trust Assets) of the Trust Depositor (including by virtue of any
deficiency claim in respect of obligations not paid or otherwise satisfied from
the Trust Assets and proceeds thereof). 
In furtherance of and not in derogation of the foregoing, each
Noteholder by accepting a Note acknowledges and agrees that it shall have no
right, title or interest in or to any assets (or interests therein) (other than
Trust Assets) conveyed or purported to be conveyed by the Trust Depositor to
another securitization trust (i.e., other than the Issuer) or other Person or
Persons in connection therewith (whether by way of a sale, capital contribution
or by virtue of the granting of a Lien) (“Other Assets”).  To the extent that, notwithstanding the
agreements and provisions contained in the preceding sentences of this Section 11.19,
any Noteholder either (i) asserts an interest in or claim to, or benefit
from, Other Assets, whether asserted against or through the Trust Depositor or
any other Person owned by the Trust Depositor, or (ii) is deemed to have
any such interest, claim or benefit in or from Other Assets, whether by
operation of law, legal process, pursuant to applicable provisions of any
applicable insolvency laws or otherwise (including without limitation by virtue
of Section 1111(b) of the federal Bankruptcy Code or any successor
provision having similar effect under the Bankruptcy Code or any successor
provision having similar effect under the Bankruptcy Code), and whether deemed
asserted against or through the Trust Depositor or any other Person owned by
the Trust Depositor, then each Noteholder by accepting a Note further
acknowledges and agrees that any such interest, claim or benefit in or from
Other Assets is and shall be expressly subordinated to the indefeasible payment
in full of all obligations and liabilities of the Trust Depositor which, under
the terms of the relevant documents relating to the securitization of such
Other Assets, are entitled to be paid from, entitled to the benefits of, or
otherwise secured by such Other Assets (whether or not any such entitlement or
security interest is legally perfected or otherwise entitled to a priority of
distribution or application under applicable law, including any applicable
insolvency laws, and whether asserted against the Trust Depositor or any other
Person owned by the Depositor), including, without limitation, the payment of
post-petition interest on such other obligations and liabilities.  This subordination agreement shall be deemed
a subordination agreement within the meaning of Section 510(a) of the
Bankruptcy Code.  Each Noteholder further
acknowledges and agrees that no adequate remedy at law exists for a breach of
this Section

 

60

 

11.19 and that the terms and provisions of this Section 11.19
may be enforced by an action for specific performance.

 

[signature page follows]

 

61

 

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

 

	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  TRUST 2005-2

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY, not in

  its individual capacity but solely on behalf of

  the Issuer as Owner Trustee under the Trust

  Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ JANEL R. HAVRILLA

  
	
   

  	
  Printed Name: Janel R. Havrilla

  
	
   

  	
  Title:

  	
  Financial Services Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY,

  N.A., not in its individual capacity but solely as

  Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ CYNTHIA L. DAVIS

  
	
   

  	
  Printed Name:   Cynthia Davis

  
	
   

  	
  Title:   Vice President

  
					

 

 

	
  STATE OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS

  
	
  COUNTY OF COOK

  	
  )

  	
   

  

 

	
  On

  	
  May 26, 2005

  	
   

  
	
   

  	
  [insert date]

  	
   

  
	
   

  	
   

  
	
  before me,

  	
  Michelle Kallick, Paralegal

  	
   

  
	
   

  	
  [Insert name and title
  of notary]

  	
   

  
	
   

  	
   

  
	
  personally appeared 

  	
  Cynthia Davis

  	
  ,

  
					

 

ý            personally known to me, or

 

o            proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument,

 

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

 

WITNESS
my hand and official seal.

 

 

	
  Signature

  	
  /s/ MICHELLE KALLICK

  	
         [Seal]

  
	
   

  	
   

  	
   

  
	
  My commission expires
  8/27/05

  

 

 

	
  STATE OF DELAWARE

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS

  
	
  COUNTY OF NEW CASTLE

  	
  )

  	
   

  
				

 

	
  On

  	
  May 24, 2005

  	
   

  
	
   

  	
  [insert date]

  	
   

  
	
   

  	
   

  
	
  before me,

  	
  Amanda Burger,
  Administrative Assistant

  	
   

  
	
   

  	
  [Insert name and title
  of notary]

  	
   

  
	
   

  	
   

  
	
  personally appeared 

  	
  Janel R. Havrilla

  	
  ,

  
					

 

ý            personally known to me, or

 

o            proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument,

 

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

 

WITNESS
my hand and official seal.

 

	
  Signature

  	
  /s/ AMANDA E. BURGER

  	
         [Seal]

  
	
   

  	
   

  	
   

  
	
  Amanda E. Burger

  	
   

  
	
  Notary Public - State of Delaware

  	
   

  
	
  My Comm. Expires Mar. 7, 2007

  	
   

  

 

 

EXHIBIT A

 

[RESERVED]

 

A-1

 

EXHIBIT B

 

FORM OF CLASS A-1
NOTE

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE 
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SECURITY IS NOT A
SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY
OR FUND OF THE UNITED STATES.

 

THE PRINCIPAL OF THIS
NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

 

HARLEY-DAVIDSON MOTORCYCLE
TRUST 2005-2

 

   %
HARLEY-DAVIDSON MOTORCYCLE CONTRACT BACKED NOTES, CLASS A-1

 

	
  REGISTERED

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.            

  	
   

  

 

Harley-Davidson
Motorcycle Trust 2005-2, a statutory trust organized and existing under
the laws of the State of Delaware (herein referred to as the “Issuer”), for
value received, hereby promises to pay to [        ],
or registered assigns, the principal sum of 
            ($     )
payable on the earlier of the Distribution Date occurring in January 2010
(the “Class A-1 Final Distribution Date”) and the Redemption Date,
if any, pursuant to Section 10.01 of the Indenture referred to on the
reverse hereof.

 

The Issuer will pay
interest on this Note at the rate per annum shown above on each Distribution
Date until the principal of this Note is paid or made available for payment, on
the principal amount of this Note outstanding on the preceding Distribution Date
(after giving effect to all payments of principal made on the preceding
Distribution Date), subject to certain limitations contained in Section 3.01
of the Indenture.  Interest on this Note
will accrue for each Distribution Date from the most recent Distribution Date
on which interest

 

B-1

 

has been paid to but excluding such Distribution  Date or, if no interest has yet been paid,
from the Closing Date.  Interest will be
computed on the basis of a 360-day year of twelve 30-day
months.  Such principal of and interest
on this Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and
interest on this Note are payable in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and
private debts.  All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of this
Note.

 

Reference is made to the
further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.

 

Unless the certificate of
authentication hereon has been executed by the Indenture Trustee whose name
appears below by manual signature, this Note shall not be entitled to any benefit
under the indenture referred to on the reverse hereof, or be valid or obligatory
for any purpose.

 

B-2

 

IN WITNESS WHEREOF, the
Issuer has caused this instrument to be signed, manually or in facsimile, by an
Authorized Officer, as of the date set forth below.

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2005-2

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

B-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes
designated above and referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK TRUST

  COMPANY, N.A.

  
	
   

  	
  not in its individual capacity but solely as

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

B-4

 

[REVERSE OF CLASS A-1
NOTE]

 

This Note is one of a duly authorized issue of Notes
of the Issuer, designated as its    % Harley-Davidson Motorcycle
Contract Backed Notes, Class A-1 (the “Class A-1 Notes”),
all issued under an Indenture, dated as of May 1, 2005 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Class A-1
Notes are subject to all terms of the Indenture.  All terms used in this Note that are defined
in the Indenture, as supplemented or amended, shall have the meanings assigned
to them in or pursuant to the Indenture, as so supplemented or amended.

 

The Class A-1 Notes and the other Classes
of Notes described in the Indenture (collectively, the “Notes”) are and will be
equally and ratably secured by the collateral pledged as security therefor as
provided in the Indenture subject to the priorities of allocations as to
interest and principal payments as described in the Sale and Servicing
Agreement.

 

Principal of the Class A-1 Notes will be
payable on the earlier of the Class A-1 Final Distribution Date and
the Redemption Date, if any, selected pursuant to the Indenture.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Class A-1 Notes shall be due and
payable on the date following the occurrence of an Event of Default on which
the maturity of the Notes shall have been accelerated in the manner provided in
the Indenture.  All principal payments on
the Class A-1 Notes shall be made pro rata to the Class A-1
Noteholders entitled thereto.

 

Payments of interest on this Note due and payable on
each Distribution Date shall be made by wire transfer to the account of the
Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date except that with respect to Notes registered on the Record Date in
the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee.  Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment.  Any
reduction in the principal amount of this Note (or any one or more Predecessor
Notes) affected by any payments made on any Distribution Date shall be binding
upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted hereon.  If funds
are expected to be available, as provided in the Indenture, for payment in full
of the then remaining unpaid principal amount of this Note on a Distribution
Date, then the Indenture Trustee, in the name of and on behalf of the Issuer,
will notify the Person who was the Registered Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed within five days of such
Distribution Date and the amount then due and payable shall be payable only
upon presentation and surrender of this Note at the Corporate Trust Office of
the Indenture

 

B-5

 

Trustee or at the office of the Indenture Trustee’s
agent appointed for such purposes located in the City of Chicago, Illinois.

 

The Issuer shall pay interest on overdue installments
of interest at the Class A-1 Rate to the extent lawful.

 

As provided in the
Indenture, the Notes may be redeemed pursuant to Section 10.01(a) of
the Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date on or after the date on which the Pool Balance is less than
10% of the sum of the Pool Balance as of the Initial Cutoff Date plus the
Pre-Funded Amount as of the Closing Date.

 

As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
his attorney duly authorized in writing, with such signature guaranteed by an
eligible guarantor institution which is a participant in the Securities
Transfer Agent’s Medallion Program (STAMP) or similar signature guarantee
program, and such other documents as the Indenture Trustee may require, and
thereupon one or more new program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new Class A-1 Notes
of authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

 

Each Noteholder by acceptance of a Note or a
beneficial interest in a Note covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer,
the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture
or any certificate or other writing delivered in connection therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or
the Owner Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed and
except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity.

 

Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note covenants and agrees that by accepting the
benefits of the Indenture and such Note that such Noteholder will not at any
time institute against the Trust Depositor or the Issuer, or join in any
institution against the Trust Depositor or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any
United States federal or state

 

B-6

 

bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Transaction Documents.

 

The Issuer has entered into the Indenture, and this
Note is issued with the intention that, for federal, state and local income,
single business and franchise tax purposes, the Notes will qualify as
indebtedness secured by the Collateral and that the Issuer will be disregarded
as a separate entity for federal income tax purposes pursuant to Treasury
Regulations Section 301.7701-3(b)(1)(ii).  Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness of the
Issuer.

 

Prior to the due presentment for registration of
transfer of this Note, the Issuer and the Indenture Trustee and any agent of
the Issuer and the Indenture Trustee may treat the Person in whose name this
Note (as of the day of determination or as of such other date as may be
specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Noteholders under the Indenture
at any time by the Issuer and the Modified Required Holders.  The Indenture also contains provisions
permitting the Noteholders representing specified percentages of the
Outstanding Amount of the Notes, on behalf of the Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences.  Any such consent or waiver by the Noteholder  (or any one of more Predecessor Notes) shall
be conclusive and binding upon such Holders and upon all future
Noteholders  and of any Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the
Indenture without the consent of Noteholders issued thereunder.

 

Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note is deemed to represent that (i) it is not,
and is not acquiring a Note or a beneficial interest in a Note on behalf of or
with “plan assets” (as determined under Department of Labor Regulation Section 2510.3-101
or otherwise) of a Plan, or any employee benefit plan subject to Similar Law,
or (ii) its acquisition and holding of a Note or a beneficial interest in
a Note do not give rise to a nonexempt prohibited transaction under Section 406
of ERISA or Section 4975 of the Code, or any Similar Law.  Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note is deemed to make one of the foregoing
representations.

 

The Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations
therein set forth.

 

This Note and the Indenture shall be construed in
accordance with the laws of the State of Illinois, and the obligations, rights
and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

 

B-7

 

No reference herein to the Indenture and no provision
of this Note or of the Indenture shall alter or impair the obligation of the
Issuer, which is absolute and unconditional, to pay the principal of and
interest on this Note at the times, place, and rate, and in the coin or
currency herein prescribed.

 

B-8

 

EXHIBIT C

 

FORM OF CLASS A-2
NOTE

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE  ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND
IT IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED
STATES.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS
AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2005-2

 

   %
HARLEY-DAVIDSON MOTORCYCLE CONTRACT BACKED NOTES,

CLASS A-2

 

	
  REGISTERED

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.          

  	
   

  

 

Harley-Davidson Motorcycle Trust 2005-2, a
statutory trust organized and existing under the laws of the State of Delaware
(herein referred to as the “Issuer”), for value received, hereby promises to
pay to [           ], or
registered assigns, the principal sum of 
            ($          )
payable on the earlier of the Distribution Date occurring in February 2012
(the “Class A-2 Final Distribution Date”) and the Redemption Date,
if any, pursuant to Section 10.01 of the Indenture referred to on the
reverse hereof.  No payments of principal
of the Class A-2 Notes shall be made until the principal on the Class A-1
Notes have been paid in full.

 

The Issuer will pay interest on this Note at the rate
per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), subject to certain
limitations contained in Section 3.01 of the Indenture.  Interest on this Note will

 

C-1

 

accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, if no interest has yet been paid, from the Closing
Date.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Note are payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect
to this Note shall be applied first to interest due and payable on this Note as
provided above and then to the unpaid principal of this Note.

 

Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note.

 

Unless the certificate of authentication hereon has
been executed by the Indenture Trustee whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

 

C-2

 

IN WITNESS WHEREOF, the
Issuer has caused this instrument to be signed, manually or in facsimile, by an
Authorized Officer, as of the date set forth below.

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE 

  
	
   

  	
  TRUST 2005-2

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

C-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes
designated above and referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK TRUST

  COMPANY, N.A.,

  
	
   

  	
  not in its individual capacity but solely as

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

C-4

 

[REVERSE OF CLASS A-2
NOTE]

 

This Note is one of a
duly authorized issue of Notes of the Issuer, designated as its    %
Harley-Davidson Motorcycle Contract Backed Notes, Class A-2 (the “Class A-2
Notes”), all issued under an Indenture, dated as of May 1, 2005 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Notes are
subject to all terms of the Indenture. 
All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or
pursuant to the Indenture, as so supplemented or amended.

 

The Class A-2
Notes and the other Classes of Notes described in the Indenture (collectively,
the “Notes”) are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture subject to the
priorities of allocations as to interest and principal payments as described in
the Sale and Servicing Agreement.

 

Principal of the Class A-2
Notes will be payable on the earlier of the Class A-2 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.01(a) or
10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A-2 Notes shall be due and payable on the date on which
following the occurrence of an Event of Default on which the maturity of the
Notes shall have been accelerated in the manner provided in the Indenture.  All principal payments on the Class A-2
Notes shall be made pro rata to the Class A-2 Noteholders entitled
thereto.

 

Payments of interest on
this Note due and payable on each Distribution Date shall be made by wire
transfer to the account of the Person whose name appears as the Registered
Holder of this Note (or one or more Predecessor Notes) on the Note Register as
of the close of business on each Record Date, except that with respect to Notes
registered on the Record Date in the name of nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee.  Such checks shall be mailed to
the Person entitled thereto at the address of such Person as it appears on the
Note Register as of the applicable Record Date without requiring that this Note
be submitted for notation of payment. 
Any reduction in the principal amount of this Note (or any one or more
Predecessor Notes) affected by any payments made on any Distribution Date shall
be binding upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted hereon.  If funds
are expected to be available, as provided in the Indenture, for payment in full
of the then remaining unpaid principal amount of this Note on a Distribution
Date, then the Indenture Trustee, in the name of and on behalf of the Issuer,
will notify the Person who was the Registered Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed within five days of such
Distribution Date and the amount then due and payable shall be payable only
upon presentation and surrender of this Note at the Indenture Trustee’s
principal Corporate Trust

 

C-5

 

Office or at the office of the Indenture Trustee’s agent appointed for
such purposes located in the City of Chicago, Illinois.

 

The Issuer shall pay
interest on overdue installments of interest at the Class A-2 Rate
to the extent lawful.

 

As provided in the
Indenture, the Notes may be redeemed pursuant to Section 10.01(a) of
the Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date on or after the date on which the Pool Balance is less than
10% of the sum of the Pool Balance as of the Initial Cutoff Date plus the
Pre-Funded Amount as of the Closing Date.

 

As provided in the
Indenture and subject to certain limitations set forth therein, the transfer of
this Note may be registered on the Note Register upon surrender of this Note
for registration of transfer at the office or agency designated by the Issuer
pursuant to the Indenture, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder hereof or his attorney duly authorized in writing, with
such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new program, and such other
documents as the Indenture Trustee may require, and thereupon one or more new Class A-2
Notes of authorized denomination and in the same aggregate principal amount
will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

 

Each Noteholder, by
acceptance of a Note or  a beneficial
interest in a Note covenants and agrees that no recourse may be taken, directly
or indirectly, with respect to the obligations of the Issuer, the Owner Trustee
or the Indenture Trustee on the Notes or under the Indenture or any certificate
or other writing delivered in connection therewith, against (i) the
Indenture Trustee or the Owner Trustee in their individual capacities, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or
the Owner Trustee in their individual capacities, any holder of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in their
individual capacities, except as any such Person may have expressly agreed and
except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity.

 

Each Noteholder, by
acceptance of a Note or a beneficial interest in a Note covenants and agrees that
by accepting the benefits of the Indenture and such Note that such Noteholder
will not at any time institute against the Trust Depositor or the Issuer, or
join in any institution against the Trust Depositor or the Issuer of any
bankruptcy, reorganization,

 

C-6

 

arrangement, insolvency or liquidation proceedings under any United
States federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Transaction Documents.

 

The Issuer has entered
into the Indenture, and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes,
the Notes will qualify as indebtedness secured by the Collateral and that the
Issuer will be disregarded as a separate entity for federal income tax purposes
pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii).  Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness of the
Issuer.

 

Prior to the due
presentment for registration of transfer of this Note, the Issuer and the
Indenture Trustee and any agent of the Issuer, the Indenture Trustee may treat
the Person in whose name this Note (as of the day of determination or as of
such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Note be overdue, and neither
the Issuer, the Indenture Trustee nor any such agent shall be affected by
notice to the contrary.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the
Holders of the Notes under the Indenture at any time by the Issuer and the
consent of the Modified Required Holders. 
The Indenture also contains provisions permitting the Holders of Notes
representing specified percentages of the Outstanding Amount of the Notes, on
behalf of the Holders of all the Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences.  Any
such consent or waiver by the Holder of this Note (or any one of more
Predecessor Notes) shall be conclusive and binding upon such Holders and upon
all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Note.  The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the
Indenture without the consent of Holders of the Notes issued thereunder.

 

Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note is deemed to represent that (i) it is not,
and is not acquiring a Note or a beneficial interest in a Note on behalf of or
with “plan assets” (as determined under Department of Labor Regulation Section 2510.3-101
or otherwise) of a Plan, or any employee benefit plan subject to Similar Law,
or (ii) its acquisition and holding of a Note or a beneficial interest in
a Note do not give rise to a nonexempt prohibited transaction under Section 406
of ERISA or Section 4975 of the Code, or any Similar Law.  Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note is deemed to make one of the foregoing
representations.

 

The Notes are issuable
only in registered form in denominations as provided in the Indenture, subject
to certain limitations therein set forth.

 

C-7

 

This Note and the
Indenture shall be construed in accordance with the laws of the State of
Illinois, and the obligations, rights and remedies of the parties hereunder and
thereunder shall be determined in accordance with such laws.

 

No reference herein to
the Indenture and no provision of this Note or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to
pay the principal of and interest on this Note at the times, place, and rate,
and in the coin or currency herein prescribed.

 

C-8

 

EXHIBIT D

 

FORM OF CLASS B
NOTE

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE  ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

THIS SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND
IT IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED
STATES.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS
AS SET FORTH HEREIN.  ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2005-2

 

   %
HARLEY-DAVIDSON MOTORCYCLE CONTRACT BACKED NOTES,

CLASS B

 

	
  REGISTERED

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.          

  	
   

  

 

Harley-Davidson Motorcycle Trust 2005-2, a
statutory trust organized and existing under the laws of the State of Delaware
(herein referred to as the “Issuer”), for value received, hereby promises to
pay to [           ], or
registered assigns, the principal sum of 
            ($          )
payable on the earlier of the Distribution Date occurring in February 2013
(the “Class B Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.

 

The Issuer will pay interest on this Note at the rate
per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), subject to
certain limitations contained in Section 3.01 of the Indenture.  Interest on this Note will accrue for each
Distribution Date from the most recent Distribution Date on which interest has
been paid to but excluding such Distribution Date or, if no interest has yet
been paid,

 

D-1

 

from the Closing Date. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.  Such principal of
and interest on this Note shall be paid in the manner specified on the reverse
hereof.

 

The principal of and interest on this Note are payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect
to this Note shall be applied first to interest due and payable on this Note as
provided above and then to the unpaid principal of this Note.

 

Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note.

 

Unless the certificate of authentication hereon has
been executed by the Indenture Trustee whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the indenture referred
to on the reverse hereof, or be valid or obligatory for any purpose.

 

D-2

 

IN WITNESS WHEREOF, the
Issuer has caused this instrument to be signed, manually or in facsimile, by an
Authorized Officer, as of the date set forth below.

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2005-2

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

D-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes
designated above and referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK TRUST

  COMPANY, N.A.,

  
	
   

  	
  not in its individual capacity but solely as

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

D-4

 

[REVERSE OF CLASS B
NOTE]

 

This Note is one of a
duly authorized issue of Notes of the Issuer, designated as its    %
Harley-Davidson Motorcycle Contract, Class B (the “Class B Notes”),
all issued under an Indenture, dated as of May 1, 2005 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Notes are
subject to all terms of the Indenture. 
All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or
pursuant to the Indenture, as so supplemented or amended.

 

The Class B Notes
and the other Classes of Notes described in the Indenture (collectively, the “Notes”)
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture subject to the priorities of
allocations as to interest and principal payments as described in the Sale and
Servicing Agreement.

 

Principal of the Class B
Notes will be payable on the earlier of the Class B Final Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01(a) or
10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class B Notes shall be due and payable on the date on which following the
occurrence of an Event of Default on which the maturity of the Notes shall have
been accelerated in the manner provided in the Indenture.  All principal payments on the Class B
Notes shall be made pro rata to the Class B Noteholders entitled thereto.

 

Payments of interest on
this Note due and payable on each Distribution Date shall be made by wire
transfer to the account of the Person whose name appears as the Registered
Holder of this Note (or one or more Predecessor Notes) on the Note Register as
of the close of business on each Record Date, except that with respect to Notes
registered on the Record Date in the name of nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee.  Such checks shall be mailed to
the Person entitled thereto at the address of such Person as it appears on the
Note Register as of the applicable Record Date without requiring that this Note
be submitted for notation of payment. 
Any reduction in the principal amount of this Note (or any one or more
Predecessor Notes) affected by any payments made on any Distribution Date shall
be binding upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted hereon.  If funds
are expected to be available, as provided in the Indenture, for payment in full
of the then remaining unpaid principal amount of this Note on a Distribution
Date, then the Indenture Trustee, in the name of and on behalf of the Issuer,
will notify the Person who was the Registered Holder hereof as of the Record
Date preceding such Distribution Date by notice mailed within five days of such
Distribution Date and the amount then due and payable shall be payable only
upon presentation and surrender of this Note at the Indenture Trustee’s
principal Corporate Trust

 

D-5

 

Office or at the office of the Indenture Trustee’s agent appointed for
such purposes located in the City of Chicago, Illinois.

 

The Issuer shall pay
interest on overdue installments of interest at the Class B Rate to the
extent lawful.

 

As provided in the
Indenture, the Notes may be redeemed pursuant to Section 10.01(a) of
the Indenture, in whole, but not in part, at the option of the Seller, on any
Distribution Date on or after the date on which the Pool Balance is less than
10% of the sum of the Pool Balance as of the Initial Cutoff Date plus the
Pre-Funded Amount as of the Closing Date.

 

As provided in the
Indenture and subject to certain limitations set forth therein, the transfer of
this Note may be registered on the Note Register upon surrender of this Note
for registration of transfer at the office or agency designated by the Issuer
pursuant to the Indenture, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder hereof or his attorney duly authorized in writing, with
such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new program, and such other
documents as the Indenture Trustee may require, and thereupon one or more new Class B
Notes of authorized denomination and in the same aggregate principal amount
will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

 

Each Noteholder, by
acceptance of a Note or  a beneficial
interest in a Note covenants and agrees that no recourse may be taken, directly
or indirectly, with respect to the obligations of the Issuer, the Owner Trustee
or the Indenture Trustee on the Notes or under the Indenture or any certificate
or other writing delivered in connection therewith, against (i) the
Indenture Trustee or the Owner Trustee in their individual capacities, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or
the Owner Trustee in their individual capacities, any holder of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in their
individual capacities, except as any such Person may have expressly agreed and
except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity.

 

Each Noteholder, by
acceptance of a Note or a beneficial interest in a Note covenants and agrees
that by accepting the benefits of the Indenture and such Note that such
Noteholder will not at any time institute against the Trust Depositor or the
Issuer, or join in any institution against the Trust Depositor or the Issuer of
any bankruptcy, reorganization,

 

D-6

 

arrangement, insolvency or liquidation proceedings under any United
States federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Transaction Documents.

 

The Issuer has entered
into the Indenture, and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes,
the Notes will qualify as indebtedness secured by the Collateral and that the
Issuer will be disregarded as a separate entity for federal income tax purposes
pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii).  Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note, agrees to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness of the
Issuer.

 

Prior to the due
presentment for registration of transfer of this Note, the Issuer and the
Indenture Trustee and any agent of the Issuer, the Indenture Trustee may treat
the Person in whose name this Note (as of the day of determination or as of
such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Note be overdue, and neither
the Issuer, the Indenture Trustee nor any such agent shall be affected by
notice to the contrary.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the
Holders of the Notes under the Indenture at any time by the Issuer and the
consent of the Modified Required Holders. 
The Indenture also contains provisions permitting the Holders of Notes
representing specified percentages of the Outstanding Amount of the Notes, on
behalf of the Holders of all the Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences.  Any
such consent or waiver by the Holder of this Note (or any one of more
Predecessor Notes) shall be conclusive and binding upon such Holders and upon
all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Note.  The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the
Indenture without the consent of Holders of the Notes issued thereunder.

 

Each Noteholder, by acceptance of a Note or a beneficial
interest in a Note is deemed to represent that (i) it is not, and is not
acquiring a Note or a beneficial interest in a Note on behalf of or with “plan
assets” (as determined under Department of Labor Regulation Section 2510.3-101
or otherwise) of a Plan, or any employee benefit plan subject to Similar Law,
or (ii) its acquisition and holding of a Note or a beneficial interest in
a Note do not give rise to a nonexempt prohibited transaction under Section 406
of ERISA or Section 4975 of the Code, or any Similar Law.  Each Noteholder, by acceptance of a Note or a
beneficial interest in a Note is deemed to make one of the foregoing
representations.

 

The Notes are issuable
only in registered form in denominations as provided in the Indenture, subject
to certain limitations therein set forth.

 

D-7

 

This Note and the
Indenture shall be construed in accordance with the laws of the State of
Illinois, and the obligations, rights and remedies of the parties hereunder and
thereunder shall be determined in accordance with such laws.

 

No reference herein to
the Indenture and no provision of this Note or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to
pay the principal of and interest on this Note at the times, place, and rate,
and in the coin or currency herein prescribed.

 

D-8

 

EXHIBIT E

 

FORM OF
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 Note, and all rights thereunder, hereby
  irrevocably constituting and appointing

  	
   

  
	
   

  	
   

  
	
  to transfer said Note on the books kept for
  registration thereof, with full power of substitution in the premises.

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature must be guaranteed by an eligible
  guarantor institution which is a participant in the Securities Transfer
  Agent’s Medallion Program (STAMP) or similar signature guarantee program.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Notice: The signature(s) on this assignment must
  correspond with the name(s) as it appears on the face of the within Note in
  every particular, without alteration or enlargement or any change whatsoever.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Authorized Officer)

  	
   

  	
   

  

 

E-1

 

EXHIBIT F

 

FORM OF NOTE
DEPOSITORY AGREEMENT

 

F-1Exhibit
10.1

 

 

 

TRANSFER AND SALE AGREEMENT

 

 

by and between

 

HARLEY-DAVIDSON CREDIT CORP.,

as Seller

 

 

and

 

 

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,

 

 

as Purchaser

 

 

Dated as of May 1, 2005

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  DEFINITION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  GENERAL

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II
  TRANSFER OF CONTRACTS; ASSIGNMENT OF AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  CLOSING

  	
   

  
	
  SECTION 2.02.

  	
  CONDITIONS
  TO THE CLOSING

  	
   

  
	
  SECTION 2.03.

  	
  ASSIGNMENT
  OF AGREEMENT

  	
   

  
	
  SECTION 2.04.

  	
  SUBSEQUENT
  CONTRACTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING SELLER

  	
   

  
	
  SECTION 3.02.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING EACH CONTRACT

  	
   

  
	
  SECTION 3.03.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING THE CONTRACTS IN THE AGGREGATE

  	
   

  
	
  SECTION 3.04.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING THE CONTRACT FILES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  CUSTODY
  OF CONTRACTS

  	
   

  
	
  SECTION 4.02.

  	
  FILING

  	
   

  
	
  SECTION 4.03.

  	
  NAME
  CHANGE OR RELOCATION

  	
   

  
	
  SECTION 4.04.

  	
  COSTS
  AND EXPENSES

  	
   

  
	
  SECTION 4.05

  	
  SALE
  TREATMENT

  	
   

  
	
  SECTION 4.06

  	
  SEPARATENESS
  FROM TRUST DEPOSITOR

  	
   

  
	
  SECTION 4.07

  	
  PROTECTION
  OF SECURITY INTERESTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  REMEDIES UPON MISREPRESENTATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  REPURCHASES
  OF CONTRACTS FOR BREACH OF REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  SECTION 5.02.

  	
  SELLER’S
  REPURCHASE OPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  INDEMNITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  SELLER INDEMNIFICATION

  	
   

  
	
  SECTION 6.02.

  	
  LIABILITIES
  TO OBLIGORS

  	
   

  
	
  SECTION 6.03.

  	
  TAX
  INDEMNIFICATION

  	
   

  
	
  SECTION 6.04.

  	
  OPERATION
  OF INDEMNITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  PROHIBITED
  TRANSACTIONS WITH RESPECT TO THE TRUST

  	
   

  
	
  SECTION 7.02.

  	
  MERGER
  OR CONSOLIDATION

  	
   

  
	
  SECTION 7.03.

  	
  TERMINATION

  	
   

  
	
  SECTION 7.04.

  	
  ASSIGNMENT
  OR DELEGATION BY SELLER

  	
   

  
	
  SECTION 7.05.

  	
  AMENDMENT

  	
   

  
	
  SECTION 7.06.

  	
  NOTICES

  	
   

  
	
  SECTION 7.07.

  	
  MERGER
  AND INTEGRATION

  	
   

  
	
  SECTION 7.08.

  	
  HEADINGS

  	
   

  
	
  SECTION 7.09.

  	
  GOVERNING
  LAW

  	
   

  

 

i

 

EXHIBITS

 

	
  Exhibit A

  	
  Form of
  Assignment

  	
   

  
	
  Exhibit B

  	
  Form of
  Officer’s Certificate

  	
   

  
	
  Exhibit C

  	
  Form of
  Subsequent Purchase Agreement

  	
   

  

 

ii

 

THIS AGREEMENT, dated as of May 1, 2005, is made by and between
Harley-Davidson Credit Corp., a Nevada corporation, as seller hereunder
(together with its successors and assigns “Harley-Davidson Credit” or “Seller”), and Harley-Davidson Customer Funding Corp., a
Nevada corporation and wholly-owned subsidiary of Seller (together with its
successors and assigns “Trust Depositor”),
as purchaser hereunder.

 

WHEREAS, in the regular course of its business, Seller
purchases and services (i) motorcycle conditional sales contracts from
Harley-Davidson motorcycle retailers and (ii) motorcycle promissory note
and security agreements from Eaglemark Savings Bank, each of which contracts
provides for installment payment obligations by or on behalf of the retailer’s
customer/purchaser and grants a security interest in the related motorcycle in
order to secure such obligations;

 

WHEREAS, Seller and Trust Depositor wish to set forth the terms
and conditions pursuant to which Trust Depositor will acquire from time to time
the “Contract Assets,” as hereinafter
defined; and

 

WHEREAS, Trust Depositor intends concurrently with its
purchases from time to time of Contract Assets hereunder to convey all right,
title and interest in such Contract Assets to Harley-Davidson Motorcycle Trust
2005-2 (the “Trust”) pursuant to the Sale and
Servicing Agreement dated as of May 1, 2005 by and among Trust Depositor,
Harley-Davidson Credit, as Servicer, the Trust, as issuer (the “Issuer”) and The Bank of New York Trust Company, N.A., as
Indenture Trustee (as amended, supplemented or otherwise modified from time to
time, the “Sale and Servicing Agreement”), executed
concurrently herewith;

 

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

 

ARTICLE I

 

DEFINITIONS

 

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

 

ARTICLE II

 

TRANSFER OF CONTRACTS; ASSIGNMENT
OF AGREEMENT

 

Section 2.01.                         Closing. 
Subject to and upon the terms and conditions set forth in this
Agreement, Seller hereby sells, transfers, assigns, sets over and otherwise
conveys to Trust Depositor, in consideration of Trust Depositor’s payment of
$539,659,874.89 in cash as the purchase price therefor, (i) all the right,
title and interest of Seller in and to the Initial Contracts

 

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)                                 An
Officer’s Certificate from Seller certifying that the Seller, on or prior to
the Closing Date, has indicated in its computer files, in accordance with its
customary standards, policies and procedures, that the Contracts have been
conveyed to the Trust Depositor pursuant to this Agreement.

 

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

 

Section 2.03.                         Assignment
of Agreement.  Trust Depositor has the right to assign its
interest under this Agreement to the Issuer as may be required to effect the
purposes of the Sale and Servicing Agreement, without further notice to, or
consent of, Seller, and the Issuer shall succeed to such of the rights of Trust
Depositor hereunder as shall be so assigned. 
Seller acknowledges that, pursuant to the Sale and Servicing Agreement,
Trust Depositor will assign all of its right, title and interest in and to the
Contract Assets and its right to exercise the remedies created by Section 5.01
hereof for breaches of representations and warranties of Seller contained in
Sections 3.01, 3.02, 3.03 and 3.04 hereof to the Issuer and the Indenture
Trustee for the benefit of the Noteholders. 
Seller agrees that, upon such assignment to the Issuer and the Indenture

 

3

 

Trustee, such representations will run to and be for
the benefit of the Issuer and the Indenture Trustee and the Issuer and the
Indenture Trustee may enforce directly without joinder of Trust Depositor, the
obligations of Seller set forth herein.

 

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

 

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

 

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

 

(ii)                                  the Funding Period shall not have terminated;

 

(iii)                               the
Seller shall have delivered to the Trust Depositor a duly executed Purchase
Agreement in substantially the form of Exhibit C
hereto (the “Subsequent

 

4

 

Purchase
Agreement”), which shall include a Subsequent List of
Contracts listing the Subsequent Contracts being purchased;

 

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

 

(v)                                 each
Rating Agency shall have notified the Trust Depositor and the Trustees that
following such transfer, and the transfer immediately thereafter of the
Subsequent Contracts to the Trust, the Class A-1 Notes and the Class A-2
Notes will be rated in the highest rating category by such Rating Agency and
the Class B Notes will be rated at least “A” by Standard & Poor’s
and “A3” by Moody’s;

 

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

 

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

 

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

 

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

 

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

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

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

 

5

 

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

 

Section 3.01.                         Representations
and Warranties Regarding Seller.  Seller
represents and warrants, as of the execution and delivery of this Agreement and
as of the Closing Date, in the case of the Initial Contracts, and as of the
applicable Subsequent Transfer Date, in the case of Subsequent Contracts, that:

 

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

 

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

 

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

 

(d)                                 No
Violations.  Seller’s execution,
delivery and performance of this Agreement and the other Transaction Documents
to which the Seller is a party will not violate any provision of any existing
law or regulation or any order or decree of any court or the Articles of
Incorporation or Bylaws of Seller, or constitute a material breach of any

 

6

 

mortgage, indenture, contract or
other agreement to which Seller is a party or by which Seller or any of Seller’s
properties may be bound.

 

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

 

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

 

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

 

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

 

Section 3.02.                         Representations
and Warranties Regarding Each Contract.  Seller
represents and warrants as to each Contract as of the execution and delivery of
this Agreement and as of the Closing Date, in the case of the Initial
Contracts, and as of the applicable Subsequent Transfer Date, in the case of
Subsequent Contracts, that:

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

(g)                                 Origination.  Either (i) Contracts were originated by
a Harley-Davidson motorcycle dealer in the regular course of its business which
dealer had all necessary licenses and permits to originate the Contracts in the
state where such dealer was located, was fully and properly executed by the
parties thereto, and has been purchased by Seller in the regular course of its
business, or (ii) Contracts were originated by Eaglemark Savings Bank in
the regular course of its business which had all necessary licenses and permits
to originate the Contracts in the state where it was located, was fully and
properly executed by the parties thereto, and has been purchased by Seller in
the regular course of its business.  Each
Contract was sold by such motorcycle dealer or Eaglemark Savings Bank, as the
case may be, to the Seller without any fraud or misrepresentation on the part
of such motorcycle dealer or Eaglemark Savings Bank.

 

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

 

(i)                                     Compliance
with Law.  None of the Contracts, the
origination of the Contracts by the dealers or Eaglemark Savings Bank, the
purchase of the Contracts by the

 

8

 

Seller,
the sale of the Contracts by the Seller to the Trust Depositor or by the Trust
Depositor to the Trust, or any combination of the foregoing, violated at the
time of origination or as of the Closing Date or as of any Subsequent Transfer
Date, as applicable, any requirement of any federal, state or local law and
regulations thereunder, including, without limitation, usury, truth in lending,
motor vehicle installment loan and equal credit opportunity laws, applicable to
the Contracts and the sale of Motorcycles. 
Seller shall, for at least the period of this Agreement, maintain in its
possession, available for the Trust Depositor’s and the Trustees’  inspection, and shall deliver to Trust
Depositor or  the Trustee  upon demand, evidence of compliance with all
such requirements.

 

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

 

(k)                                  Valid
Security Interest.  Each Contract
creates a valid, subsisting and enforceable first priority perfected security
interest in favor of Seller or Eaglemark Savings Bank (as the case may be) in
the Motorcycle covered thereby, and such security interest has been assigned by
Eaglemark Savings Bank to Seller (where applicable) and by Seller to the Trust
Depositor.  The original certificate of
title, certificate of lien or other notification or evidence (the “Lien Certificate”) issued by the body responsible for the
registration of, and the issuance of certificates of title or evidence relating
to, motor vehicles and liens thereon (the “Registrar of Titles”)
of the applicable state shows Seller or Eaglemark Savings Bank (as the case may
be) as original secured party under each Contract and as the holder of a first
priority security interest in such Motorcycle. 
With respect to each Contract for which a written Lien Certificate is
provided and has not yet been returned from the Registrar of Titles, the Seller
has received written evidence that such Lien Certificate showing Seller or
Eaglemark Savings Bank as lienholder has been applied for.  Eaglemark Savings Bank’s security interest
has been validly assigned by Eaglemark Savings Bank to Seller.  Seller’s security interest has been validly
assigned by the Seller to the Trust Depositor pursuant to this Agreement and by
the Trust Depositor to the Issuer pursuant to the Sale and Servicing
Agreement.  Immediately after the sale,
each Contract will be secured by an enforceable and perfected first priority
security interest in the Motorcycle in favor of the Trust as secured party,
which security interest is prior to all other liens upon and security interests
in such Motorcycle which now exist or may hereafter arise or be created
(except, as to priority, for any lien for taxes, labor, materials or of any
state law enforcement agency affecting a Motorcycle).

 

(1)                                  Capacity
of Parties.  All parties to any
Contract had the capacity to execute such Contract and all other documents
related thereto and to grant the security interest purported to be granted
thereby.

 

9

 

(m)                               Good
Title.  Each Contract was purchased
by Seller for value and taken into possession prior to the Initial Cutoff Date
(or the applicable Subsequent Cutoff Date in the case of Subsequent Contracts)
in the ordinary course of its business, without knowledge that the Contract was
subject to a security interest.  No
Contract has been sold, assigned or pledged to any person other than Trust
Depositor and the Issuer as the transferee of Trust Depositor, and prior to the
transfer of the Contract to Trust Depositor, Seller had good and marketable
title to each Contract free and clear of any encumbrance, equity, loan, pledge,
charge, claim or security interest and was the sole owner thereof and had full
right to transfer the Contract to Trust Depositor and to permit Trust Depositor
to transfer the same to the Issuer, and, as of the Closing Date (or the
applicable Subsequent Transfer Date in the case of Subsequent Contracts), the
Issuer will have a first priority perfected security interest therein.

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

(t)                                    Lockbox
Bank.  The Lockbox Bank is the only
institution holding any Lockbox Account for receipt of payments from Obligors,
and all Obligors have been instructed to make payments to the Lockbox Account
(either directly by remitting payments to the Lockbox, or indirectly by making
payments through direct debit, the telephone or the internet to an account of
the Servicer which payments will be subsequently transferred from such account
to one or more Lockbox Banks), and no person claiming through or under Seller
has any claim or interest in the Lockbox Account other than the Lockbox Bank; provided, however, that other “Trusts” (as defined in the
Lockbox Agreement) shall have an interest in certain other collections therein
not related to the Contracts.

 

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

 

(v)                                 Chattel
Paper.  The Contracts constitute
tangible chattel paper within the meaning of the UCC.

 

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

 

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

 

Section 3.03.                         Representations
and Warranties Regarding the Contracts in the Aggregate. 
Seller represents and warrants, as of the execution and delivery of this
Agreement and as of the Closing Date, in the case of the Initial Contracts,
and, if applicable, as of the applicable Subsequent Transfer Date, in the case
of Subsequent Contracts, that:

 

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

 

11

 

(b)                                 Characteristics.  The Initial Contracts have the following
characteristics: (i) all the Contracts are secured by Motorcycles; (ii) no
Initial Contract has a remaining maturity of more than 84 months; and (iii) the
final scheduled payment on the Initial Contract with the latest maturity is due
no later than May 2012.   
Approximately 79.84% of the Principal Balance of the Initial Contracts
as of the Initial Cutoff Date is attributable to loans for purchases of new
Motorcycles and approximately 20.16% is attributable to loans for purchases of
used Motorcycles.  No Initial Contract
was originated after the Initial Cutoff Date. 
No Initial Contract has a Contract Rate less than 3.987%.  The last scheduled payment date of the
Contracts (including any Subsequent Contracts) is due no later than August 2012.  Approximately 98.22% of the Principal Balance
of the Initial Contracts as of the Initial Cutoff Date is attributable to loans
for purchases of Motorcycles manufactured by Harley-Davidson or Buell and
approximately 1.78% of the Principal Balance of the Initial Contracts as of the
Initial Cutoff Date is attributable to loans for purchases of Motorcycles not
manufactured by Harley-Davidson or Buell.

 

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

 

(d)                                 No
Adverse Selection.  No selection
procedures adverse to Noteholders have been employed in selecting the
Contracts.

 

(e)                                  True
Sale.  The transactions contemplated
by this Agreement and the Sale and Servicing Agreement constitute valid sales,
transfers and assignments from Seller to Trust Depositor and from Trust
Depositor to the Trust of all of Seller’s right, title and interest in the
Contract Assets as of the Closing Date and any Subsequent Transfer Date, as
applicable.

 

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

 

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

 

Section 3.04.                         Representations
and Warranties Regarding the Contract Files. 
Seller represents and warrants as of the execution and delivery of this
Agreement and as of the Closing Date, in the case of the Initial Contracts, and
as of the applicable Subsequent Transfer Date, in the case of Subsequent
Contracts, that:

 

12

 

(a)                                  Possession.  Immediately prior to the Closing Date or any
Subsequent Transfer Date, the Servicer, or its custodian, will have possession
of each original Contract and the related complete Contract File.  Each of such documents which is required to be signed by the Obligor has been signed by
the Obligor in the appropriate spaces. 
All blanks on any form have been properly filled in and each form has
otherwise been correctly prepared.  The
complete Contract File for each Contract currently is in the possession of the
Servicer, or its custodian.

 

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

 

ARTICLE IV

 

PERFECTION OF TRANSFER AND
PROTECTION OF SECURITY INTERESTS

 

Section 4.01.                         Custody
of Contracts.  The contents of each Contract File shall be
held by the Servicer, or its custodian, for the benefit of the Trust as the
owner thereof in accordance with the Sale and Servicing Agreement.

 

Section 4.02.                         Filing. 
On or prior to the Closing Date and each Subsequent Transfer Date,
Seller shall cause the UCC financing statement(s) referred to in Section 2.02(g) hereof
and in Section 2.02(g) of the Sale and Servicing Agreement to be
filed and from time to time Seller shall take and cause to be taken such
actions and execute such documents as are necessary or desirable or as Trust
Depositor or the Trust may reasonably request to perfect and protect the Trust
Depositor’s and the Trust’s ownership interest in the Contract Assets against
all other persons, including, without limitation, the filing of financing
statements, amendments thereto and continuation statements, the execution of
transfer instruments and the making of notations on or taking possession of all
records or documents of title.  The
Seller authorizes the Trust Depositor to file financing statements describing
the Contract Assets as collateral.  All
financing statements filed or to be filed against the Seller in favor of the
Trust Depositor or the Trust in connection herewith describing the Contract
Assets as collateral shall contain a statement to the following effect: “A
purchase of or security interest in any collateral described in this financing
statement, except as permitted in the Transfer and Sale Agreement or Sale and
Servicing Agreement, will violate the rights of the Secured Party.”

 

Section 4.03.                       Name Change or Relocation.  (a) During
the term of this Agreement, Seller shall not change its name, identity or
structure or state of incorporation without first giving at least 30 days’
prior written notice to Trust Depositor and to the Trustees.

 

(b)                                 If any change in Seller’s name, identity
or structure or other action would make any financing or continuation statement
or notice of ownership interest or lien filed under this

 

13

 

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

 

Section 4.04.                         Costs and
Expenses. 
Seller agrees to pay all reasonable costs and disbursements in
connection with the perfection and the maintenance of perfection, as against
all third parties, of (i) Trust Depositor’s, the Issuer’s and the
Indenture Trustee’s right, title and interest in and to the Contract Assets
(including, without limitation, the security interest in the Motorcycles
related thereto) and (ii) the security interests provided for in the
Indenture.

 

Section 4.05                            Sale Treatment. 
Each of Seller and Trust Depositor shall treat the transfer of Contract
Assets made hereunder (including in respect of Subsequent Contracts) for all
purposes (including tax and financial accounting purposes) as a sale and
purchase on all of its relevant books, records, financial statements and other
applicable documents.

 

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

 

Section 4.07                            Protection of Security Interests. 
The Seller agrees to deliver an Officer’s Certificate to the Owner
Trustee and the Indenture Trustee, as promptly as practicable after the Closing
Date (or Subsequent Transfer Date, as the case may be), and in any event within
60 days thereof, certifying that the Seller’s compliance officer has reviewed
the original of each Initial Contract and each related Contract File, that each
Initial Contract and related Contract File conforms in all material respects
with the initial List of Contracts and each such Contract File is complete and
that each document required be an original.

 

ARTICLE V

 

REMEDIES UPON MISREPRESENTATION

 

Section 5.01.                         Repurchases
of Contracts for Breach of Representations and Warranties. 
Seller hereby agrees, for the benefit of the Issuer, the Indenture
Trustee and the Trust Depositor, that it shall repurchase a Contract including
any Subsequent Contracts (together with all related Contract Assets), at its
Repurchase Price, not later than two Business Days prior to the first

 

14

 

Determination Date after Seller becomes aware, or
should have become aware, or receives written notice from Trust Depositor,
either of the Trustees or the Servicer of any breach of a representation or
warranty of Seller set forth in Article III of this Agreement that
materially adversely affects Trust Depositor’s or the Trust’s interest in such
Contract (without regard to the benefits of the Reserve Fund) and which breach
has not been cured; provided, however,
that with respect to any Contract described on the List of Contracts with
respect to an incorrect unpaid Principal Balance which Seller would otherwise
be required to repurchase pursuant to this Section 5.01 and Section 7.08
of the Sale and Servicing Agreement, Seller may, in lieu of repurchasing such
Contract, deposit in the Collection Account not later than two Business Days
prior to such Determination Date cash in an amount sufficient to cure any
deficiency or discrepancy; and provided further
that with respect to a breach of a representation or warranty relating to the Contracts
in the aggregate and not to any particular Contract, Seller may select
Contracts (without adverse selection) to repurchase such that had such
Contracts not been reconveyed by Trust Depositor and included as part of the
Trust there would have been no breach of such representation or warranty; provided further that the failure to maintain perfection of
the security interest in the Motorcycle securing a Contract in accordance with
the Sale and Servicing Agreement, shall be deemed to be a breach materially and
adversely affecting the Trust’s interest in the Contracts or in the related
Contract Assets.  Notwithstanding any
other provision of this Agreement, the obligation of Seller under this Section 5.01
and under Section 7.08 of the Sale and Servicing Agreement shall not
terminate upon a Service Transfer pursuant to Article VIII of the Sale and
Servicing Agreement.

 

Section 5.02.                         Seller’s Repurchase Option. 
On written notice to the Owner Trustee and the Indenture Trustee at
least 20 days prior to a Distribution Date, provided the Pool Balance is then
less than 10% of the Aggregate Principal Balance as of the Closing Date, Seller
may (but is not required to) repurchase from the Trust on that Distribution
Date all outstanding Contracts (and related Contract Assets) at a price equal
to the aggregate unpaid principal balance of the Notes on the previous
Distribution Date plus the aggregate of the Note Interest Distributable Amount
for the current Distribution Date, the Reimbursement Amount (if any) as well as
accrued and unpaid Monthly Servicing Fees and Indenture Trustee Fee to the date
of such repurchase.  Such price will be
deposited in the Collection Account not later than one Business Day before such
Distribution Date, against the Trustees’ release of the Contracts and Contract
Files as described in Section 7.10 of the Sale and Servicing Agreement.

 

ARTICLE VI

 

INDEMNITIES

 

Section 6.01.                         Seller
Indemnification.  Seller will defend and
indemnify Trust Depositor, the Trust, the Trustees, any agents of the Trustees
and the Noteholders against any and all costs, expenses, losses, damages,
claims and liabilities, joint or several, including reasonable fees and
expenses of counsel and expenses of litigation arising out of or resulting from
(i) this Agreement or the use, ownership or operation of any Motorcycle by
Seller or the Servicer or any Affiliate of either, (ii) any representation
or warranty or covenant made by Seller in this Agreement being

 

15

 

untrue or incorrect (subject to the second sentence of
the preamble to Article III of this Agreement above), and (iii) any
untrue statement or alleged untrue statement of a material fact contained in
the Prospectus or in any amendment thereto or the omission or alleged omission
to state therein a material fact necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading, in each
case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement was made in conformity with information furnished to
Trust Depositor by Seller specifically for use therein.  Notwithstanding any other provision of this
Agreement, the obligation of Seller under this Section 6.01 shall not
terminate upon a Service Transfer pursuant to Article VIII of the Sale and
Servicing Agreement and shall survive any termination of that agreement or this
Agreement.

 

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

 

Section 6.03.                         Tax
Indemnification.  Seller agrees to pay, and to
indemnify, defend and hold harmless the Trust Depositor, the Trust, the
Trustees or the Noteholders from, any taxes which may at any time be asserted
with respect to, and as of the date of, the transfer of the Contracts to Trust
Depositor hereunder and the concurrent reconveyance to the Trust and the
further pledge by the Trust to the Indenture Trustee, including, without
limitation, any sales, gross receipts, general corporation, personal property,
privilege or license taxes (but not including any federal, state or other taxes
arising out of the creation of the Trust and the issuance of the Notes) and
costs, expenses and reasonable counsel fees in defending against the same,
whether arising by reason of the acts to be performed by Seller under this
Agreement or the Servicer under the Sale and Servicing Agreement or imposed
against the Trust, a Noteholder or otherwise. 
Notwithstanding any other provision of this Agreement, the obligation of
Seller under this Section 6.03 shall not terminate upon a Service Transfer
pursuant to Article VIII of the Sale and Servicing Agreement and shall
survive any termination of this Agreement.

 

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

 

16

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.01.                         Prohibited
Transactions with Respect to the Trust.  Seller shall
not:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 7.04.                         Assignment
or Delegation by Seller.  Except as
specifically authorized hereunder, Seller may not convey and assign or delegate
any of its rights or obligations hereunder absent the prior written consent of
Trust Depositor and the Trustees, and any attempt to do so without such consent
shall be void.

 

Section 7.05.                         Amendment.  (a) This
Agreement may be amended from time to time by Seller and Trust Depositor, with
notice to the Rating Agencies, but without the consent of the Trustees or any
of the Noteholders to correct manifest error, to cure any ambiguity, to correct
or supplement any provisions herein or therein which may be inconsistent with
any other provisions herein, therein or in the Prospectus, as the case may be,
or to add any other provisions with respect to matters or questions arising
under this Agreement which shall not be inconsistent with the provisions of
this Agreement or the Prospectus; provided, however,
that such action shall not,

 

17

 

as evidenced by an Opinion of Counsel for
Seller acceptable to the Trustees, adversely affect the interests of any
Noteholder.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

Section 7.09.                         Governing
Law.  This Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws of the State of
Illinois.

 

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

 

[signature
page follows]

 

19

 

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

 

 

	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PERRY A
  GLASSGOW

  	
   

  
	
   

  	
   

  	
  Printed
  Name:  Perry A. Glassgow

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CREDIT CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PERRY A
  GLASSGOW

  	
   

  
	
   

  	
   

  	
  Printed
  Name:  Perry A. Glassgow

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  

 

 

Signature Page to
Transfer and

Sale Agreement

 

 

Exhibit A

Transfer and Sale

Agreement

 

FORM OF ASSIGNMENT

 

In accordance with the Transfer and Sale Agreement
(the “Agreement”) dated as of May 1, 2005
made by and between the undersigned, as seller thereunder (“Seller”), and Harley-Davidson Customer Funding Corp., a
Nevada corporation and wholly-owned subsidiary of Seller (“Trust
Depositor”), as purchaser thereunder, the undersigned does hereby
sell, transfer, convey and assign, set over and otherwise convey to Trust
Depositor (i) all the right, title and interest of Seller in and to the
Initial Contracts listed on the initial List of Contracts in effect on the
Closing Date (including, without limitation, all security interests and all
rights to receive payments which are collected pursuant thereto after the
Initial Cutoff Date, including any liquidation proceeds therefrom, but
excluding any rights to receive payments which were collected pursuant thereto
on or prior to the Initial Cutoff Date), (ii) all rights of Seller under
any physical damage or other individual insurance policy (including a “forced placed” policy, if any), 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 of Seller in the Lockbox, Lockbox Account and
related Lockbox Agreement to the extent they relate to the Contracts, (vi) all
rights (but not the obligations) of the Seller under any motorcycle dealer
agreements between the dealers (i.e. originators of certain Contracts) and the
Seller, (vii) all rights of Seller 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 (viii) all proceeds and products of the foregoing

 

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

 

Capitalized terms used herein but not otherwise
defined shall have the meanings assigned to such terms in the Sale and
Servicing Agreement dated as of May 1, 2005 made by and among the
undersigned, as servicer, the Trust Depositor, Harley-Davidson Motorcycle Trust
2005-2, as issuer, and The Bank of New York Trust Company, N.A., as indenture
trustee.

 

A-1

 

IN WITNESS WHEREOF, the undersigned has caused this
Assignment to be duly executed this        day of
May, 2005.

 

	
   

  	
  HARLEY-DAVIDSON
  CREDIT CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Printed
  Name:  Perry A. Glassgow

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  

 

A-2

 

Exhibit B

Transfer and Sale

Agreement

 

FORM OF OFFICER’S CERTIFICATE

 

(See Exhibit C to the Sale and Servicing Agreement)

 

B-1

 

Exhibit C

Transfer and Sale

Agreement

 

FORM OF SUBSEQUENT PURCHASE AGREEMENT

 

SUBSEQUENT PURCHASE AGREEMENT (the “Agreement”), dated as of                         ,               ,
by and among Harley-Davidson Customer Funding Corp., a Nevada corporation (the “Trust Depositor”), and Harley-Davidson Credit Corp., a  Nevada corporation (the “Seller”),
pursuant to the Transfer and Sale Agreement referred to below.

 

WITNESSETH:

 

WHEREAS, the Trust Depositor and the Seller are
parties to the Transfer and Sale Agreement, dated as of May 1, 2005 (the “Transfer and Sale Agreement”);

 

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

 

WHEREAS, the Seller has timely delivered an Addition
Notice related to such conveyance as required in the Sale and Servicing
Agreement dated as of May 1, 2005 among the Seller (in the capacity of
Servicer thereunder), the Issuer as defined therein, the Trust Depositor and
the Indenture Trustee as defined therein (the “Sale and Servicing
Agreement”).

 

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

 

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

 

“Subsequent Cutoff Date” shall
mean, with respect to the Subsequent Contracts transferred hereby, [                  ].

 

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

 

“Subsequent Transfer Date” shall
mean, with respect to the Subsequent Contracts transferred hereby, [                    ].

 

Section 2.                                          Subsequent
List of Contracts.  The Subsequent List of Contracts attached hereto as Exhibit A
is a supplement to the initial List of Contracts attached as Exhibit H to the Sale and Servicing Agreement.  The Contracts listed in the Subsequent List
of Contracts

 

C-1

 

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

 

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

 

Section 4.                                          Representations
and Warranties of the Seller.  (a) Seller
hereby represents and warrants to the Trust Depositor that the representations
and warranties of Seller in Section 3.01 of the Transfer and Sale
Agreement are true and correct as of the Subsequent Transfer Date.

 

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

 

C-2

 

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

 

Section 5.                                          Ratification
of Agreement.  As supplemented by this Agreement, the
Transfer and Sale Agreement is in all respects ratified and confirmed and, as
so supplemented by this Agreement, shall be read, taken and construed as one
and the same instrument.

 

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

 

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

 

C-3

 

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

 

 

	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Printed
  Name:   Perry A. Glassgow

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CREDIT CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Printed
  Name:   Perry A. Glassgow

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

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