Document:

Exhibit
10.2

Execution
Copy

 

SALE AND SERVICING AGREEMENT

among

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-3,

as Issuer,

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,

as Trust Depositor,

HARLEY-DAVIDSON CREDIT CORP.,

as Servicer

and

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

as Indenture Trustee

Dated as of August 15, 2007

 

Table of Contents

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE One DEFINITIONS

  	
   

  	
  1

  
	
   

  	
  Section 1.01.

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
  Section 1.02.

  	
  Usage of Terms

  	
   

  	
  21

  
	
   

  	
  Section 1.03.

  	
  Section References

  	
   

  	
  21

  
	
   

  	
  Section 1.04.

  	
  Calculations

  	
   

  	
  21

  
	
   

  	
  Section 1.05.

  	
  Accounting Terms

  	
   

  	
  22

  
	
  ARTICLE Two TRANSFER OF CONTRACTS

  	
   

  	
  22

  
	
   

  	
  Section 2.01.

  	
  Closing

  	
   

  	
  22

  
	
   

  	
  Section 2.02.

  	
  Conditions to the Closing

  	
   

  	
  22

  
	
  ARTICLE Three REPRESENTATIONS AND WARRANTIES

  	
   

  	
  24

  
	
   

  	
  Section 3.01.

  	
  Representations and Warranties Regarding the
  Trust Depositor

  	
   

  	
  24

  
	
   

  	
  Section 3.02.

  	
  Representations and Warranties Regarding the
  Servicer

  	
   

  	
  26

  
	
  ARTICLE Four PERFECTION OF TRANSFER AND PROTECTION
  OF SECURITY INTERESTS

  	
   

  	
  27

  
	
   

  	
  Section 4.01.

  	
  Custody of Contracts

  	
   

  	
  27

  
	
   

  	
  Section 4.02.

  	
  Filing

  	
   

  	
  28

  
	
   

  	
  Section 4.03.

  	
  Name Change or Relocation

  	
   

  	
  29

  
	
   

  	
  Section 4.04.

  	
  Costs and Expenses

  	
   

  	
  29

  
	
  ARTICLE Five SERVICING OF CONTRACTS

  	
   

  	
  29

  
	
   

  	
  Section 5.01.

  	
  Responsibility for Contract Administration

  	
   

  	
  29

  
	
   

  	
  Section 5.02.

  	
  Standard of Care

  	
   

  	
  29

  
	
   

  	
  Section 5.03.

  	
  Records

  	
   

  	
  30

  
	
   

  	
  Section 5.04.

  	
  Inspection

  	
   

  	
  30

  
	
   

  	
  Section 5.05.

  	
  Trust Accounts

  	
   

  	
  30

  
	
   

  	
  Section 5.06.

  	
  Enforcement

  	
   

  	
  32

  
	
   

  	
  Section 5.07.

  	
  Trustees to Cooperate

  	
   

  	
  33

  
	
   

  	
  Section 5.08.

  	
  Costs and Expenses

  	
   

  	
  33

  
	
   

  	
  Section 5.09.

  	
  Maintenance of Security Interests in Motorcycles

  	
   

  	
  33

  
	
   

  	
  Section 5.10.

  	
  Successor Servicer/Lockbox Agreements

  	
   

  	
  34

  
	
   

  	
  Section 5.11.

  	
  Separate Entity Existence

  	
   

  	
  34

  
	
  ARTICLE Six THE TRUST DEPOSITOR

  	
   

  	
  34

  
	
   

  	
  Section 6.01.

  	
  Covenants of the Trust Depositor

  	
   

  	
  34

  
	
   

  	
  Section 6.02.

  	
  Liability of Trust Depositor; Indemnities

  	
   

  	
  36

  
	
   

  	
  Section 6.03.

  	
  Merger or Consolidation of, or Assumption of the
  Obligations of, Trust Depositor; Certain Limitations

  	
   

  	
  37

  
	
   

  	
  Section 6.04.

  	
  Limitation on Liability of Trust Depositor and
  Others

  	
   

  	
  38

  
	
   

  	
  Section 6.05.

  	
  Trust Depositor Not to Resign

  	
   

  	
  38

  
	
  ARTICLE Seven DISTRIBUTIONS; RESERVE FUND; YIELD
  SUPPLEMENT ACCOUNT

  	
   

  	
  38

  
	
   

  	
  Section 7.01.

  	
  Monthly Distributions

  	
   

  	
  38

  
	
   

  	
  Section 7.02.

  	
  Fees

  	
   

  	
  39

  
	
   

  	
  Section 7.03.

  	
  Advances

  	
   

  	
  39

  
	
   

  	
  Section 7.04.

  	
  Reserved

  	
   

  	
  39

  
	
   

  	
  Section 7.05.

  	
  Distributions; Priorities

  	
   

  	
  39

  
	
   

  	
  Section 7.06.

  	
  Reserve Fund

  	
   

  	
  43

  
	
   

  	
  Section 7.07.

  	
  Yield Supplement Account

  	
   

  	
  44

  
	
   

  	
  Section 7.08.

  	
  Purchase of Contracts for Breach of
  Representations and Warranties

  	
   

  	
  45

  
	
   

  	
  Section 7.09.

  	
  Reassignment of Reacquired Contracts

  	
   

  	
  45

  
	
   

  	
  Section 7.10.

  	
  Servicer’s Purchase Option

  	
   

  	
  45

  
	
   

  	
  Section 7.11.

  	
  Purchase of Contracts for Breach of Servicing
  Obligations

  	
   

  	
  46

  
	
   

  	
  Section 7.12.

  	
  Interest Rate Swap Agreement

  	
   

  	
  46

  

 

 i
 

 

	
  ARTICLE Eight EVENTS OF TERMINATION; SERVICE
  TRANSFER

  	
   

  	
  48

  
	
   

  	
  Section 8.01.

  	
  Events of Termination

  	
   

  	
  48

  
	
   

  	
  Section 8.02.

  	
  Waiver of Event of Termination

  	
   

  	
  49

  
	
   

  	
  Section 8.03.

  	
  Service Transfer

  	
   

  	
  49

  
	
   

  	
  Section 8.04.

  	
  Successor Servicer to Act; Appointment of
  Successor Servicer

  	
   

  	
  49

  
	
   

  	
  Section 8.05.

  	
  Notification to Securityholders

  	
   

  	
  50

  
	
   

  	
  Section 8.06.

  	
  Effect of Transfer

  	
   

  	
  50

  
	
   

  	
  Section 8.07.

  	
  Database File

  	
   

  	
  50

  
	
   

  	
  Section 8.08.

  	
  Successor Servicer Indemnification

  	
   

  	
  50

  
	
   

  	
  Section 8.09.

  	
  Responsibilities of the Successor Servicer

  	
   

  	
  50

  
	
   

  	
  Section 8.10.

  	
  Limitation of Liability of Servicer

  	
   

  	
  51

  
	
   

  	
  Section 8.11.

  	
  Merger or Consolidation of Servicer

  	
   

  	
  51

  
	
   

  	
  Section 8.12.

  	
  Servicer Not to Resign

  	
   

  	
  51

  
	
   

  	
  Section 8.13.

  	
  Appointment of Subservicer

  	
   

  	
  52

  
	
  ARTICLE Nine REPORTS

  	
   

  	
  52

  
	
   

  	
  Section 9.01.

  	
  Monthly Reports

  	
   

  	
  52

  
	
   

  	
  Section 9.02.

  	
  Officer’s Certificate

  	
   

  	
  52

  
	
   

  	
  Section 9.03.

  	
  Other Data

  	
   

  	
  52

  
	
   

  	
  Section 9.04.

  	
  Report on Assessment of Compliance with Servicing
  Criteria and Attestation; Annual Officer’s Certificate

  	
   

  	
  52

  
	
   

  	
  Section 9.05.

  	
  Monthly Reports to Noteholders and the Swap
  Counterparty

  	
   

  	
  53

  
	
   

  	
  Section 9.06.

  	
  Regulation AB

  	
   

  	
  55

  
	
   

  	
  Section 9.07.

  	
  Information to Be Provided by the Indenture
  Trustee

  	
   

  	
  55

  
	
   

  	
  Section 9.08.

  	
  Exchange Act Reporting

  	
   

  	
  55

  
	
  ARTICLE Ten TERMINATION

  	
   

  	
  56

  
	
   

  	
  Section 10.01.

  	
  Sale of Trust Assets

  	
   

  	
  56

  
	
  ARTICLE Eleven MISCELLANEOUS

  	
   

  	
  56

  
	
   

  	
  Section 11.01.

  	
  Amendment

  	
   

  	
  56

  
	
   

  	
  Section 11.02.

  	
  Protection of Title to Trust

  	
   

  	
  58

  
	
   

  	
  Section 11.03.

  	
  Governing Law

  	
   

  	
  59

  
	
   

  	
  Section 11.04.

  	
  Notices

  	
   

  	
  59

  
	
   

  	
  Section 11.05.

  	
  Severability of Provisions

  	
   

  	
  61

  
	
   

  	
  Section 11.06.

  	
  Assignment

  	
   

  	
  61

  
	
   

  	
  Section 11.07.

  	
  Third Party Beneficiaries

  	
   

  	
  61

  
	
   

  	
  Section 11.08.

  	
  Counterparts

  	
   

  	
  61

  
	
   

  	
  Section 11.09.

  	
  Headings

  	
   

  	
  61

  
	
   

  	
  Section 11.10.

  	
  No Bankruptcy Petition; Disclaimer and
  Subordination

  	
   

  	
  61

  
	
   

  	
  Section 11.11.

  	
  Limitation of Liability of Owner Trustee and
  Indenture Trustee

  	
   

  	
  62

  

 

 ii
 

EXHIBITS

	
  Exhibit A

  	
   

  	
  Form of Assignment

  	
   

  	
  A-1

  
	
  Exhibit B

  	
   

  	
  Form of Closing Certificate of Trust Depositor

  	
   

  	
  B-1

  
	
  Exhibit C

  	
   

  	
  Form of Closing Certificate of Seller/Servicer

  	
   

  	
  C-1

  
	
  Exhibit D

  	
   

  	
  Reserved

  	
   

  	
  D-1

  
	
  Exhibit E 

  	
   

  	
  Servicing Criteria to be Addressed in Indenture
  Trustee’s

  Assessment of Compliance 

  	
   

  	
  E-1 

  
	
  Exhibit F

  	
   

  	
  Form of Indenture Trustee’s Annual Certificate

  	
   

  	
  F-1

  
	
  Exhibit G

  	
   

  	
  Form of Certificate Regarding Reacquired Contracts

  	
   

  	
  G-1

  
	
  Exhibit H

  	
   

  	
  List of Contracts

  	
   

  	
  H-1

  
	
  Exhibit I

  	
   

  	
  Form of Monthly Report to Noteholders and the
  Certificateholder

  	
   

  	
  I-1

  
	
  Exhibit J

  	
   

  	
  Seller’s Representations and Warranties

  	
   

  	
  J-1

  
	
  Exhibit K

  	
   

  	
  Lockbox Bank and Lockbox Account

  	
   

  	
  K-1

  
	
  Exhibit L

  	
   

  	
  Reserved

  	
   

  	
  L-1

  

 

 iii

SALE
AND SERVICING AGREEMENT, dated as of August 15, 2007, among Harley-Davidson
Motorcycle Trust 2007-3 (together with its successors and assigns, the  “Issuer” or the “Trust”), Harley-Davidson Customer Funding Corp. (together
with its successor and assigns, the  “Trust Depositor”), The Bank of New York Trust Company, N.A.
(solely in its capacity as Indenture Trustee together with its successors and
assigns, the “Indenture Trustee”) and
Harley-Davidson Credit Corp. (solely in its capacity as Servicer together with
its successor and assigns, “Harley-Davidson Credit”
or the “Servicer”).

WHEREAS
the Issuer desires to acquire from the Trust Depositor a pool of fixed-rate,
simple interest motorcycle conditional sales contracts and promissory note and
security agreements relating to Harley-Davidson and Buell motorcycles and
motorcycles not manufactured by Harley-Davidson or Buell (collectively, the “Contracts”) purchased by Harley-Davidson Credit and
subsequently sold by Harley-Davidson Credit to the Trust Depositor;

WHEREAS
the Trust Depositor is willing to transfer and assign the Contracts to the
Issuer pursuant to the terms hereof; and

WHEREAS
the Servicer is willing to service the Contracts pursuant to the terms hereof;

NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties hereto agree as follows:

ARTICLE ONE

DEFINITIONS

Section
1.01.        Definitions. 
Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

“Advance” means, with respect to any Distribution Date, the
amounts, if any, deposited by the Servicer in the Collection Account for such
Distribution Date pursuant to Section 7.03.

“Affiliate” of any specified Person means 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 specified 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”
or “controlled” have meanings correlative to
the foregoing.

“Aggregate Principal Balance”  will
equal the sum of the Principal Balances of each outstanding Contract.  At the time of initial issuance of the
Securities, the initial aggregate principal amount of the Securities will be
less than or equal to the Pool Balance.

“Aggregate Principal Balance Decline”
means, with respect to any Distribution Date, the amount by which the Aggregate
Principal Balance as of the close of business on the last day of the Due Period
relating to the Distribution Date immediately preceding such Distribution Date
exceeds the Aggregate Principal Balance as of the close of business on the last
day of the Due Period relating to such Distribution Date.

 1
 

“Agreement”  means this
Sale and Servicing Agreement, as amended, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

“Available Monies” means, with respect to any Distribution
Date, the sum of the Available Interest and the Available Principal for such
Distribution Date.

“Available Interest” means, with respect to any Distribution
Date, the total (without duplication) of the following amounts received by the
Servicer on or in respect of the Contracts during the related Due Period: (i)
all amounts received in respect of interest on the Contracts, (ii) the interest
component of all Net Liquidation Proceeds, (iii) the interest component of the
aggregate of the Purchase Prices for Contracts reacquired by the Trust
Depositor pursuant to Section 7.08, (iv) all Advances made by the Servicer
pursuant to Section 7.03, (v) the interest component of all amounts paid by the
Servicer in connection with an optional purchase of the Contracts pursuant to
Section 7.10, (vi) the interest component of the aggregate of the Purchase
Prices for Contracts purchased by the Servicer pursuant to Section 7.11, (vii)
the Yield Supplement Withdrawal Amount, if any, for the related Distribution
Date, (viii) the Net Swap Receipt, if any, received from the Swap Counterparty
for such Distribution Date, and Swap Termination Payments made by the Swap
Counterparty (less any amounts used to enter into a Replacement Swap Agreement)
and (ix) all amounts received in respect of interest, dividends, gains, income
and earnings on investment of funds in the Trust Accounts as contemplated in
Section 5.05(d).

“Available Principal” means, with respect to any Distribution
Date, the total (without duplication) of the following amounts received by the
Servicer on or in respect of the Contracts during the related Due Period: (i)
all amounts received in respect of principal on the Contracts, (ii) the
principal component of all Net Liquidation Proceeds, (iii) the principal
component of the aggregate of the Purchase Prices for Contracts reacquired by
the Trust Depositor pursuant to Section 7.08, (iv) the principal component of
all amounts paid by the Servicer in connection with an optional purchase of the
Contracts pursuant to Section 7.10, and (v) the principal component of the
aggregate of the Purchase Prices for Contracts purchased by the Servicer
pursuant to Section 7.11.

“Average Delinquency Ratio” means, for any Distribution Date,
the arithmetic average of the Delinquency Ratios for such Distribution Date and
the two immediately preceding Distribution Dates.

 “Average Loss
Ratio” means, for any Distribution Date, the arithmetic average of
the Loss Ratios for such Distribution Date and the two immediately preceding
Distribution Dates.

“Base Prospectus”  means the
Prospectus dated August 22, 2007 relating to the Harley-Davidson Motorcycle
Trusts.

“Buell”
means Buell Motorcycle Company, LLC.

“Business Day” means any day other than a Saturday or a
Sunday, or another 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.

“Calculation Agent” means The Bank of New York Trust Company,
N.A., acting in such capacity under the Indenture.

 2
 

“Certificate”  means the
Trust Certificate (as such term is defined in the Trust Agreement),
representing 100% of the beneficial equity interest in the Trust and issued
pursuant to the Trust Agreement.

“Certificate Register” shall have the meaning specified in
the Trust Agreement.

“Certificateholder”  shall have the
meaning specified in the Trust Agreement.

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

“Class A Noteholder” means the Person in whose name a Class A
Note is registered in the Note Register, as such term is defined in the
Indenture.

“Class A Notes” means, collectively, the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

“Class A-1 Final Distribution Date” means the September 2008
Distribution Date.

“Class A-1 Noteholder” means the Person in whose name a Class
A-1 Note is registered in the Note Register, as such term is defined in the
Indenture.

“Class A-1 Notes” has the meaning set forth in the Indenture.

“Class A-1
Rate”  means 5.5942% per annum
(computed on the basis of the actual number of days elapsed and a 360-day
year).

“Class A-2 Final Distribution Date” means the September 2010
Distribution Date.

“Class A-2 Noteholder” means a Class A-2a Noteholder or a
Class A-2b Noteholder.

“Class A-2 Notes” means, collectively, the Class A-2a Notes
and the Class A-2b Notes.

“Class A-2a Noteholder” means the Person in whose name a
Class A-2a Note is registered in the Note Register.

“Class A-2a Notes” has the meaning set forth in the
Indenture.

“Class A-2a
Rate” means 5.34% per annum (computed on the basis of a 360-day year
of twelve 30-day months).

“Class A-2b Noteholder” means the Person in whose name a
Class A-2b Note is registered in the Note Register.

“Class A-2b Notes” has the meaning set forth in the
Indenture.

“Class A-2b
Rate” means LIBOR plus 0.25% per annum (computed on the basis of the
actual number of days elapsed and a 360-day year).

 3
 

“Class A-3 Final Distribution Date” means the June 2012
Distribution Date.

“Class A-3 Noteholder” means the Person in whose name a Class
A-3 Note is registered in the Note Register.

“Class A-3 Notes” has the meaning set forth in the Indenture.

“Class A-3
Rate” means LIBOR plus 0.35% per annum (computed on the basis of the
actual number of days elapsed and a 360-day year).

“Class A-4 Final Distribution Date” means the November 2013
Distribution Date.

“Class A-4 Noteholder” means the Person in whose name a Class
A-4 Note is registered in the Note Register.

“Class A-4 Notes” has the meaning set forth in the Indenture.

“Class A-4
Rate” means 5.52% per annum (computed on the basis of a 360-day year
of twelve 30-day months).

“Class B Final Distribution Date” means the August 2014
Distribution Date.

“Class B Noteholder” means the Person in whose name a Class B
Note is registered in the Note Register, as such term is defined in the
Indenture.

“Class B Notes” has the meaning set forth in the Indenture.

“Class B Rate”  means 6.04% per annum (computed on the basis of a 360-day
year of twelve 30-day months).

“Class C Final Distribution Date” means the May 2015
Distribution Date.

“Class C Noteholder” means the Person in whose name a Class C
Note is registered in the Note Register, as such term is defined in the
Indenture.

“Class C Notes” has the meaning set forth in the Indenture.

“Class C Rate”  means 6.91% per annum (computed on the basis of a 360-day
year of twelve 30-day months).

“Clearing Agency”
shall have the meaning specified in the Indenture.

“Closing Date”
means August 30, 2007.

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

“Collateral”
shall have the meaning specified in the “granting clause” of the Indenture.

 4
 

“Collection Account” means a trust account as described in
Section 5.05 maintained in the name of the Indenture Trustee and which shall be
an Eligible Account.

“Computer File” means the computer file generated by the
Servicer which provides information relating to the Contracts and which was
used by the Seller in selecting the Contracts sold to the Trust Depositor
pursuant to the Transfer and Sale Agreement and transferred to the Trust by the
Trust Depositor pursuant to this Agreement, and includes the master file and the
history file as well as servicing information with respect to the Contracts.

“Contract Assets”  has the
meaning assigned in Section 2.01 of the Transfer and Sale Agreement.

“Contract File” means, as to each Contract, (a) the original
copy of the Contract, including the executed conditional sales contract or
promissory note and security agreement or other evidence of the obligation of
the Obligor, (b) the original title certificate to the Motorcycle and, where
applicable, the certificate of lien recordation, or, if such title certificate
has not yet been issued, an application for such title certificate, or other
appropriate evidence of a security interest in the covered Motorcycle; (c) the
assignments of the Contract; (d) the original copy of any agreement(s)
modifying the Contract including, without limitation, any extension
agreement(s) and (e) documents evidencing the existence of physical damage
insurance covering such Motorcycle.

“Contract Rate” means, as to any Contract, the annual rate of
interest with respect to such Contract.

“Contracts”  means the
motorcycle conditional sales contracts or promissory note and security
agreements described in the List of Contracts and constituting part of the
Trust Corpus, and includes, without limitation, all related security interests
and any and all rights to receive payments which are collected pursuant thereto
after the Cutoff Date, but excluding any rights to receive payments which are
collected pursuant thereto on or prior to the Cutoff Date.

“Controlling Class” means the Class A Notes (voting together
as a single class, if applicable) for so long as any Class A Notes are
outstanding, then the Class B Notes for so long as any Class B Notes are
outstanding, and then the Class C Notes for so long as any Class C Notes are
outstanding.

“Corporate Trust Office” means the office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
principally administered, which office at the date of the execution of this
Agreement is located at the address set forth in Section 11.04.

“Cram Down Loss” means, with respect to a Contract, if a
court of appropriate jurisdiction in an insolvency proceeding shall have issued
an order reducing the Principal Balance of such Contract, the amount of such
reduction (with a “Cram Down Loss”
being deemed to have occurred on the date of issuance of such order).

“Cumulative Loss Ratio” means, as of any Distribution Date,
the fraction (expressed as a percentage) computed by the Servicer by dividing
(i) the aggregate Net Liquidation Losses for all Contracts since the Cutoff
Date through the end of the related Due Period by (ii) the Principal Balance of
the Contracts as of the Cutoff Date.

“Cutoff Date” means the close of business on August 12, 2007.

 5
 

“Defaulted Contract” means a Contract with respect to which
there has occurred one or more of the following: (i) all or some portion of any
payment under the Contract is 120 days or more delinquent, (ii) repossession
(and expiration of any redemption period) of a Motorcycle securing a Contract
or (iii) the Servicer has determined in good faith that an Obligor is not
likely to resume payment under a Contract.

“Delinquency Amount” means, as of any Distribution Date, the
Principal Balance of all Contracts that were delinquent 60 days or more as of
the end of the related Due Period (including Contracts in respect of which the
related Motorcycles have been repossessed and are still in inventory).

“Delinquent Interest” means, for each Contract and each
Determination Date as to which the full payment due in the related Due Period
has not been paid before the 30th day after the scheduled payment date therefor
(any such payment being “delinquent” for
purposes of this definition), all interest accrued on such Contract from the
Due Date in the Due Period one month prior to the Due Period in which the
payment is delinquent.

“Delinquency Ratio” means, for any Distribution Date, the
fraction (expressed as a percentage) computed by dividing (a) the Delinquency
Amount during the immediately preceding Due Period by (b) the Principal Balance
of the Contracts as of the beginning of the related Due Period.

“Delta Loan” means a loan made by the Seller pursuant to the
program designated as the Delta Program.

“Designated LIBOR Page” means the display on Reuters Screen
LIBOR01 Page or any successor service or any page as may replace the designated
page on that service or any successor service that displays the London
interbank rates of major banks for U.S. dollars.

“Determination Date” means the fourth Business Day following
the conclusion of a Due Period during the term of this Agreement.

“Discount Contract” means any Contract that has a Contract
Rate which is less than the Required Rate.

“Distribution Date” means the fifteenth day of each calendar
month during the term of this Agreement, or if such day is not a Business Day,
the next Business Day, with the first such Distribution Date hereunder being
September 17, 2007.

“Due Date” means, with respect to any Contract, the day of
the month on which each scheduled payment of principal and interest is due on
such Contract, exclusive of days of grace.

“Due Period” means a calendar month during the term of this
Agreement, and the Due Period related to a Determination Date or Distribution
Date shall be the calendar month immediately preceding such date; provided, however, that with respect to the Initial
Determination Date or Initial Distribution Date, the Due Period shall be the
period from the Cutoff Date to and including August 31, 2007.

“Eligible Account” means a segregated deposit account
maintained with the Indenture Trustee, acting in its fiduciary capacity, or a
depository institution or trust company organized under the laws of the United
States of America, or any of the States thereof, or the District of Columbia,
having a certificate

 6
 

of deposit, short-term deposit or commercial paper rating of at
least A-1+ by Standard & Poor’s and P-1 by Moody’s.

“Eligible Investments” mean book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered
form which evidence:

(a)           direct
obligations of, and obligations fully guaranteed as to timely payment by, the
United States of America;

(b)           demand
deposits, time deposits or certificates of deposit of any depository institution
or trust company incorporated under the laws of the United States of America or
any State (or any domestic branch of a foreign bank) and subject to supervision
and examination by Federal or State banking or depository institution
authorities; provided, however, that at the
time of the investment or contractual commitment to invest therein, the
commercial paper or other short-term senior unsecured debt obligations (other
than such obligations the rating of which is based on the credit of a Person other
than such depository institution or trust company) thereof shall have a credit
rating from the Rating Agency in the highest investment category granted
thereby;

(c)           commercial
paper, master notes, promissory notes, demand notes or other short term debt
obligations having, at the time of the investment or contractual commitment to
invest therein, a rating from the Rating Agency in the highest investment
category granted thereby;

(d)           investments
in money market funds having a rating from the Rating Agency in the highest
investment category granted thereby (including funds for which the Indenture
Trustee or the Owner Trustee or any of their respective Affiliates is
investment manager or advisor);

(e)           notes
or bankers’ acceptances issued by any depository institution or trust company
referred to in clause (b);

(f)            Repurchase
and reverse repurchase agreements collateralized by securities issued or
guaranteed by the United States government or any agency, instrumentality or
establishment of the United States government (“Government Securities”), in either case entered into with a
depository institution or trust company (acting as principal) described in clause (b),
or entered into with an entity (acting as principal) which has, or whose parent
has, a credit rating from the Rating Agency in the highest credit category
granted thereby; and

(g)           any
other investment with respect to which the Issuer or the Servicer has received
written notification from the Rating Agencies that the acquisition of such
investment as an Eligible Investment will not result in a withdrawal or
downgrading of the ratings on the Notes.

“Event of
Termination” means an event specified in Section 8.01.

“Excess Amounts” shall mean Available Monies after
distributions made in accordance with Section 7.05.

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

 7
 

“Final Distribution Date” means the Class A-1 Final
Distribution Date, the Class A-2 Final Distribution Date, the Class A-3 Final
Distribution Date, the Class A-4 Final Distribution Date, the Class B Final
Distribution Date or the Class C Final Distribution Date, as the case may be.

“First Priority Principal Distributable Amount”  means, with respect to any Distribution Date, an amount,
not less than zero, equal to the result of (a) the aggregate Outstanding
Amount of the Class A Notes as of the preceding Distribution Date (after
giving effect to any principal payments made on the Class A Notes on that
preceding Distribution Date), minus (b) the Aggregate Principal Balance at the end of Due Period related to
that Distribution Date; provided, however, that the First
Priority Principal Distributable Amount shall not exceed the Outstanding Amount
of the Class A Notes (after giving effect to any principal payments made on the
Class A Notes on that preceding Distribution Date).

“Fixed Rate
Notes” means the Class A-1 Notes, the Class A-2a Notes,
the Class A-4 Notes, the Class B Notes and the Class C Notes.

“Floating Rate
Notes” means the Class A-2b Notes and the Class A-3 Notes.

“Form 10-D Disclosure Item” means with respect to any Person, any litigation or governmental
proceedings pending against such Person, or any of the Issuer, the Seller, the
Indenture Trustee, the Owner Trustee or the Servicer of such Person, or in the
case of the Owner Trustee or Indenture Trustee, a Responsible Officer of such
Person, has actual knowledge thereof, in each case that would be material to
the Noteholders.

“Form 10-K Disclosure Item” means with respect to any Person, (a) any Form 10-D Disclosure Item,
(b) any affiliations between such Person and the Seller, the Servicer, the
Trust Depositor, the Owner Trustee and the Indenture Trustee (each, an “Item
1119 Party”), to the extent such
Person, or in the case of the Owner Trustee or Indenture Trustee, a Responsible
Officer of such Person, has actual knowledge thereof and (c) any relationships
or transactions between such Person and any Item 1119 Party that are outside
the ordinary course of business or on terms other than would be obtained in an
arm’s-length transaction with an unrelated third party, apart from the
transactions contemplated under the Transaction Documents, and that are
material to the investors’ understanding of the Notes, but only to the extent
such Person, or in the case of the Owner Trustee or Indenture Trustee, a
Responsible Officer of such Person, has actual knowledge of such relationships
or transactions.

“Harley-Davidson
Financial”  means Harley-Davidson Financial Services,
Inc., a Delaware corporation.

“Holder” means, with respect to a (i) Certificate, the Person
in whose name such Certificate is registered in the Certificate Register and
(ii) Note, the Person in whose name such Note is registered in the Note
Register.

“Indenture” means the Indenture, dated as of the date hereof,
between the Issuer and the Indenture Trustee.

“Indenture Trustee” means the Person acting as Indenture
Trustee under the Indenture, its successors in interest and any successor
trustee under the Indenture.

 8
 

“Indenture Trustee Fee” means, with respect to any Distribution
Date, one-twelfth of the product of 0.00225% and the Principal Balance of
the Contracts as of the beginning of the related Due Period; provided, however, in no event shall such fee be less than
$200.00 per month.

“Independent” when used with respect to any specified Person,
means such a Person who (i) is in fact independent of the Issuer, the Trust
Depositor or the Servicer, (ii) is not a director, officer or employee of any
Affiliate of the Issuer, the Trust Depositor or the Servicer, (iii) is not a
person related to any officer or director of the Issuer, the Trust Depositor or
the Servicer or any of their respective Affiliates, (iv) is not a holder
(directly or indirectly) of more than 10% of any voting securities of Issuer,
the Trust Depositor or the Servicer or any of their respective Affiliates, and
(v) is not connected with the Issuer, the Trust Depositor or the Servicer as an
officer, employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

“Initial Class
A-1 Note Balance”  means
$120,000,000.

“Initial
Class A-2a Note Balance”  means
$65,000,000.

“Initial
Class A-2b Note Balance”  means
$120,000,000.

“Initial
Class A-3 Note Balance” means $230,000,000

“Initial
Class A-4 Note Balance”  means
$174,660,000.

“Initial
Class B Note Balance”  means
$50,832,000.

“Initial
Class C Note Balance”  means
$21,508,000.

“Insolvency Event” means, with respect to a specified Person,
(i) the entry of a decree or order for relief by a court or regulatory
authority having jurisdiction in respect of such Person in an involuntary case
under the federal bankruptcy laws, as now or hereafter in effect, or any other
present or future, federal or state, bankruptcy, insolvency or similar law, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
or other similar official for such Person or for any substantial part of its
property, or ordering the winding-up or liquidation of such Person’s affairs,
and the continuance of any such decree or order unstayed and in effect for a
period of 60 consecutive days; (ii) the commencement of an involuntary case
under the federal bankruptcy laws, as now or hereinafter in effect, or another
present or future federal or state bankruptcy, insolvency or similar law and
such case is not dismissed within 60 days; or (iii) the commencement by such
Person of a voluntary case under the federal bankruptcy laws, as now or
hereinafter in effect, or any other present or future federal or state,
bankruptcy, insolvency or similar law, or the consent by such Person to the
appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or other similar official for such Person or
for any substantial part of its property, or the making by such Person of an assignment
for the benefit of creditors or the failure by such Person generally to pay its
debts as such debts become due or the taking of corporate action by such Person
in furtherance of any the foregoing.

“Interest Determination Date” means, with respect to any
Interest Period with respect to the Floating Rate Notes, the day that is two
London Business Days prior to the related Interest Reset Date.

 9
 

“Interest Period” means (i) with respect to any Distribution
Date and the Class A-1 Notes and the Floating Rate Notes, the period from and
including 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 such Distribution Date and (ii) with respect to any
Distribution Date and the Fixed Rate Notes (other than the Class A-1 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-2a Rate, the Class A-2b Rate, the Class A-3 Rate,
the Class A-4 Rate, the Class B Rate or the Class C Rate, as applicable.

“Interest
Rate Swap Agreement” means the ISDA Master Agreement, the Schedule
and the Credit Support Annex thereto, each dated as of the Closing Date,
between the Swap Counterparty and the Issuer, and the Confirmations thereto,
each dated as of the Closing Date, and entered into pursuant to such ISDA
Master Agreement, as the same may be amended or supplemented from time to time
in accordance with the terms thereof, and includes any Replacement Interest
Rate Swap Agreement.

“Interest Reset Date” means, with respect to any Interest
Period with respect to each Class of Floating Rate Notes, the first day of such
Interest Period.

“Investment Earnings” means, with respect to any Distribution
Date, the investment earnings (net of losses and investment expenses) on
amounts on deposit in the Trust Accounts to be deposited into the Collection
Account on such Distribution Date pursuant to Section 5.05(b).

“Issuer”  means the Harley-Davidson Motorcycle Trust 2007-3.

“Late Payment Penalty Fees” means any late payment fees paid
by Obligors on Contracts after all sums received have been allocated first to
regular installments due or overdue and all such installments are then paid in
full.

“LIBOR” means (i) in the case of the initial Interest Period,
5.5075%, and (ii) for any Interest Period thereafter, the rate for deposits in
U.S. Dollars having a maturity of one month (commencing on the related Interest
Reset Date) that appears on the Designated LIBOR Page as of 11:00 a.m. London
time, on the applicable Interest Determination Date.  With respect to an Interest Determination
Date on which fewer than two offered rates appear, or no rate appears, as the
case may be, on the Designated LIBOR Page, LIBOR for the applicable Interest
Determination Date will be the rate calculated by the Calculation Agent as the
arithmetic mean of at least two quotations obtained by the Calculation Agent
after requesting the principal London offices of each of four major reference
banks in the London interbank market, which may include the Calculation Agent
and its affiliates, as selected by the Calculation Agent, to provide the
Calculation Agent with its offered quotations for deposits in U.S. Dollars for
the period of one month, commencing on the second London Business Day
immediately following the applicable Interest Determination Date, to prime
banks in the London interbank market at approximately 11:00 a.m., London time,
on such Interest Determination Date and in a principal amount that is
representative of a single transaction in U.S. Dollars in that market at that
time.  If at least two such quotations
are provided, LIBOR determined on the applicable Interest Determination Date
will be the arithmetic mean of the quotations. 
If fewer than two quotations referred to in this paragraph are provided,
LIBOR determined on the applicable Interest Determination Date will be the rate
calculated by the

 10
 

Calculation Agent as the arithmetic mean of the rates quoted at
approximately 11:00 a.m., in New York, New York, on the applicable
Interest Determination Date by three major banks, which may include the
Calculation Agent and its affiliates, in New York, New York selected by the
Calculation Agent for loans in U.S. Dollars to leading European banks in a
principal amount that is representative of a single transaction in U.S. Dollars
in that market at that time.  If the
banks so selected by the Calculation Agent are not quoting as mentioned in this
paragraph, LIBOR for the applicable Interest Determination Date will be LIBOR
in effect on the prior Interest Determination Date.

“London Business Day” means any day on which dealings in
deposits in U.S. Dollars are transacted in the London interbank market.

“Lien” means a security interest, lien, charge, pledge,
equity or encumbrance of any kind, other than tax liens, mechanics’ liens and
any liens that attach to the respective Contract by operation of law.

“Liquidated Contract” means a Contract with respect to which
there has occurred one or more of the following: (i) 90 days have elapsed
following the date of repossession (and expiration of any redemption period)
with respect to the Motorcycle securing such Contract, (ii) the receipt of
proceeds by the Servicer from the sale of a repossessed Motorcycle securing a
Contract, (iii) the Servicer has determined in good faith that all amounts
expected to be recovered have been received with respect to such Contract, or
(iv) all or any portion of any payment is delinquent 150 days or more.

“List of Contracts” means the list identifying each Contract
constituting part of the Trust Corpus, which list (a) identifies each Contract
and (b) sets forth as to each Contract (i) the Principal Balance as of the
applicable Cutoff Date, (ii) the amount of monthly payments due from the
Obligor, (iii) the Contract Rate and (iv) the maturity date, and which list (as
in effect on the Closing Date) is attached to this Agreement as Exhibit H.

“Lockbox” means the Lockbox maintained by a Lockbox Bank
identified on Exhibit K hereto.

“Lockbox Account”  means the account
maintained with the Lockbox Bank and identified on Exhibit K
hereto.

“Lockbox Agreement”  means the
Fifth Amended and Restated Lockbox Administration Agreement dated as of
November 1, 2000 by and among the Lockbox Bank, the Servicer, the Trust Depositor,
Eaglemark Customer Funding Corporation-IV, The Bank of New York
(successor-in-interest to the corporate trust business of Harris Trust and
Savings Bank), BNY Midwest Trust Company, Bank One, National Association and
The Bank of New York Trust Company, National Association, with respect to the
Lockbox Account, unless such agreement shall be terminated in accordance with
its terms, in which event “Lockbox Agreement”
shall mean such other agreement, in form and substance acceptable to the
above-described parties.

“Lockbox Bank”  means the
financial institution maintaining the Lockbox Account and identified on Exhibit K hereto or any successor thereto.

“Loss Ratio” means, for any Distribution Date, the fraction
(expressed as a percentage) derived by dividing (x) Net Liquidation Losses for
all Contracts that became Liquidated Contracts during the immediately preceding
Due Period multiplied by twelve by (y) the outstanding Principal Balances of
all Contracts as of the beginning of the related Due Period.

 11
 

“Maximum Yield Supplement Amount” means with respect to any
Due Period and the related Distribution Date, after giving effect to the Yield
Supplement Amount for that Distribution Date, the maximum amount required to be
on deposit in the Yield Supplement Account on the Distribution Date immediately
succeeding such Distribution Date, which is equal to the present value (using
an interest rate of 1.75%) of the sum of all Yield Supplement Amounts for all
future Distribution Dates, assuming that future scheduled payments on the
Discount Contracts are made on the date on which they are scheduled as being
due.

“Modified Required Holders” means Noteholders evidencing at
least 66 2/3% of the aggregate Outstanding Amount of the Controlling Class.

“Monthly
Report” shall have the meaning specified in Section 9.05.

“Monthly Servicing Fee” means, as to any Distribution Date,
one-twelfth of the product of 1.00% and the Principal Balance of the
Contracts as of the beginning of the related Due Period or, with respect to the
first Distribution Date after the Closing Date, as of the Cutoff Date.

“Moody’s”
means Moody’s Investors Service, Inc. or any successor thereto.

“Motorcycle” means a motorcycle manufactured by a subsidiary
of Harley-Davidson, Inc. (or in certain limited instances Buell or
certain other manufacturers) securing a Contract.

“Net Liquidation Losses” means, as of any Distribution Date,
with respect to all Liquidated Contracts on an aggregate basis, the amount, if
any, by which (a) the outstanding Principal Balance of all Liquidated Contracts
exceeds (b) the Net Liquidation Proceeds for such Liquidated Contracts.

“Net Liquidation Proceeds” means, as to
any Liquidated Contract, the proceeds realized on the sale or other disposition
of the related Motorcycle, including proceeds realized on the repurchase of
such Motorcycle by the originating dealer for breach of warranties, and the
proceeds of any insurance relating to such Motorcycle, after payment of all
reasonable expenses incurred thereby, together, in all instances, with the
expected or actual proceeds of any recourse rights relating to such Contract as
well as any post-disposition proceeds or other amounts in respect of a
Liquidated Contract received by the Servicer.

“Net Swap Payment” means, for any
Distribution Date, the net amount owed by the Issuer to the Swap Counterparty,
if any, on such Distribution Date under the Interest Rate Swap Agreement,
excluding any Swap Termination Payment.

“Net Swap Receipt” means, for any
Distribution Date, the net amount owed by the Swap Counterparty to the Issuer,
if any, on such Distribution Date under the Interest Rate Swap Agreement,
excluding any Swap Termination Payment.

“Noteholder” shall have the meaning
specified in the Indenture.

“Note Depository Agreement” shall have the meaning specified
in the Indenture.

“Note Distributable Amount” means, with respect to any
Distribution Date, the sum of the Note Principal Distributable Amount and the
Note Interest Distributable Amount for such Distribution Date.

 12
 

“Note Distribution Account” means the account established and
maintained as such pursuant to Section 5.05.

“Note Interest Carryover Shortfall” means, with respect to
any Distribution Date and a Class of Notes, the excess, if any, of the sum of
the Note Interest Distributable Amount for such Class for the immediately
preceding Distribution Date plus any outstanding Note Interest Carryover
Shortfall for such Class on such preceding Distribution Date, over the amount
in respect of interest that is actually deposited in the Note Distribution
Account with respect to such Class on such preceding Distribution Date, plus,
interest on such excess to the extent permitted by applicable law, at the
related Interest Rate for the related Interest Period.

“Note Interest Distributable Amount” means, with respect to
any Distribution Date and a Class of Notes, the sum of the Note Monthly
Interest Distributable Amount and the Note Interest Carryover Shortfall for
such Class of Notes with respect to such Distribution Date.

“Note Monthly Interest Distributable Amount” means, with
respect to any Distribution Date for any Class of Notes, interest accrued for
the related Interest Period at the applicable Interest Rate for such Class of
Notes on the outstanding principal amount of the Notes of such Class on the
immediately preceding Distribution Date, after giving effect to all payments of
principal to Noteholders of such Class on or prior to such preceding
Distribution Date (or, in the case of the first Distribution Date, on the
original principal amount of such Class of Notes).

“Note Pool Factor” means with respect to any Class of Notes
as of the close of business on any Distribution Date, a seven-digit decimal
figure equal to the outstanding principal amount of such Class of Notes (after
giving effect to any reductions thereof to be made on such Distribution Date)
divided by the original outstanding principal amount of such Class of Notes.

“Note Principal Carryover Shortfall”  means,
as of the close of any Distribution Date, the excess of the Note Principal Distributable
Amount with respect to such Distribution Date over the amount in respect of
principal that is actually deposited in the Note Distribution Account on such
Distribution Date.

“Note Principal Distributable Amount”  means,
with respect to any Distribution Date, the sum of (x) the Principal
Distributable Amount with respect to such Distribution Date and  (y) the Note Principal Carryover Shortfall as
of the close of the immediately preceding Distribution Date, minus the
aggregate amount of the First Priority Distributable Amount and the Second
Priority Distributable Amount distributed on such Distribution Date; provided, however, that the Note Principal Distributable
Amount shall not exceed the Outstanding Amount of the Notes (after giving
effect to the other amounts to be deposited in the Note Distribution Account in
respect of the First Priority Principal Distributable Amount and the Second
Priority Principal Distributable Amount on such Distribution Date); and provided, further, that the Note Principal Distributable
Amount (i) on the Class A-1 Final Distribution Date shall not be less than the
amount that is necessary (after giving effect to other amounts to be deposited
in the Note Distribution Account for payment on the Class A-1 Notes on such
Distribution Date and allocable to principal) to reduce the Outstanding Amount
of the Class A-1 Notes to zero, (ii) on the Class A-2 Final Distribution Date
shall not be less than the amount that is necessary (after giving effect to
other amounts to be deposited in the Note Distribution Account for payment on
the Class A-2 Notes on such Distribution Date and allocable to principal) to
reduce the Outstanding Amount of the Class A-2 Notes to zero, (iii) on the
Class A-3 Final Distribution Date shall not be less than the amount that is
necessary (after giving effect to other amounts to be deposited in the Note
Distribution Account for payment on the Class A-3

 13
 

Notes on such Distribution Date and allocable to principal) to reduce
the Outstanding Amount of the Class A-3 Notes to zero, (iv) on the Class A-4
Final Distribution Date shall not be less than the amount that is necessary
(after giving effect to other amounts to be deposited in the Note Distribution
Account for payment on the Class A-4 Notes on such Distribution Date and
allocable to principal) to reduce the Outstanding Amount of the Class A-4 Notes
to zero, (v) on the Class B Final Distribution Date shall not be less than the
amount that is necessary (after giving effect to the other amounts to be
deposited in the Note Distribution Account for payment on the Class B Notes on
such Distribution Date and allocable to principal) to reduce the Outstanding
Amount on the Class B Notes to zero, and (vi) on the Class C Final Distribution
Date shall not be less than the amount that is necessary (after giving effect
to the other amounts to be deposited in the Note Distribution Account for
payment on the Class C Notes on such Distribution Date and allocable to
principal) to reduce the Outstanding Amount on the Class C notes to zero.

“Notes”
means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class
A-4 Notes, the Class B Notes and the Class C Notes, in each case as executed
and authenticated in accordance with the Indenture.

“Obligee” means the Person to whom an Obligor is indebted
under a Contract.

“Obligor” means a Motorcycle buyer or other person who owes
payments under a Contract.

“Officer’s Certificate” means a certificate signed by the
Chairman, the President, a Vice President, the Treasurer, an Assistant
Treasurer, the Controller, an Assistant Controller, the Secretary or an
Assistant Secretary of any Person delivering such certificate and delivered to
the Person to whom such certificate is required to be delivered, including any
certificate delivered under any of the Transaction Documents required to be
executed by a Servicing Officer.  In the
case of an Officer’s Certificate of the Servicer, at least one of the signing
officers must be a Servicing Officer. 
Unless otherwise specified, any reference herein to an Officer’s
Certificate shall be to an Officers’ Certificate of the Servicer.

“Opinion of Counsel” means a written opinion of counsel (who
may be counsel to the Trust Depositor or the Servicer) acceptable to the
Indenture Trustee or the Owner Trustee, as the case may be.

“Outstanding Amount” shall have the meaning specified in the
Indenture.

“Owner Trustee” means the Person acting, not in its
individual capacity, but solely  as Owner
Trustee under the Trust Agreement, its successors in interest and any successor
owner trustee under the Trust Agreement.

“Paying Agent” means as described in Section 1.01 of  the Indenture and Section 3.10 of the Trust
Agreement.

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

“Pool Balance” means as of any date, the Principal Balance of
Contracts as of the close of business on such date.

 14
 

“Principal Balance” means (a) with respect to any Contract as
of any date, an amount equal to the unpaid principal balance of such Contract
as of the close of business on the Cutoff Date, reduced by the sum of (x) all
payments received by the Servicer as of such date allocable to principal and
(y) any Cram Down Loss in respect of such Contract; provided,
however, that (i) if (x) a Contract is reacquired by the Seller
pursuant to Section 5.01 of the Transfer and Sale Agreement and Section 7.08
hereof because of a breach of representation or warranty or is purchased by the
Servicer pursuant to Section 7.11 hereof, or if (y) the Servicer gives notice
of its intent to purchase the Contracts in connection with an optional
termination of the Trust pursuant to Section 7.10 hereof, in each case the
Principal Balance of such Contract or Contracts shall be deemed as of the
related Determination Date to be zero for the Due Period in which such event
occurs and for each Due Period thereafter and (ii) from and after the Due
Period in which a Contract becomes a Liquidated Contract, the Principal Balance
of such Contract shall be deemed to be zero; and (b) where the context
requires, the aggregate of the Principal Balances described in clause (a) for
all such Contracts.

“Principal Distributable Amount” means (i) in respect of the
first Distribution Date after the Closing Date, the excess of (x) the
Outstanding Amount of the Notes as of the Closing Date over (y) the Aggregate
Principal Balance as of the last day of the Due Period relating to the first
Distribution Date, and (ii) on any Distribution Date thereafter, the Aggregate
Principal Balance Decline for that Distribution Date.

“Prospectus”
means the Base Prospectus together with the Supplement.

“Purchase
Price” means, with respect to a Contract to be reacquired or
purchased hereunder as of the last day of any Due Period an amount equal to (a)
the Principal Balance of such Contract as of such day, plus (b) accrued and
unpaid interest at the Contract Rate on such Contract through the end of such
Due Period.

“Qualified Eligible Investments” means Eligible Investments
acquired by the Indenture Trustee in its name and in its capacity as Indenture
Trustee, which are held by the Indenture Trustee in any Trust Account and with
respect to which (a) the Indenture Trustee has noted its interest therein on
its books and records, and (b) the Indenture Trustee has purchased such
investments for value without notice of any adverse claim thereto (and, if such
investments are securities or other financial assets or interests therein,
within the meaning of Section 8-102 of the UCC as enacted in Illinois, without
acting in collusion with a securities intermediary in violating such securities
intermediary’s obligations to entitlement holders in such assets, under Section
8-504 of such UCC, to maintain a sufficient quantity of such assets in favor of
such entitlement holders), and (c) either (i) such investments are in the
possession, or are under the control, of the Indenture Trustee, or (ii) such
investments, (A) if certificated securities and in bearer form, have been
delivered to the Indenture Trustee, or in registered form, have been delivered
to the Indenture Trustee and either registered by the issuer thereof in the
name of the Indenture Trustee or endorsed by effective endorsement to the
Indenture Trustee or in blank; (B) if uncertificated securities, the ownership
of which has been registered to the Indenture Trustee on the books of the
issuer thereof (or another person, other than a securities intermediary, either
becomes the registered owner of the uncertified security on behalf of the
Indenture Trustee or, having previously become the registered owner,
acknowledges that it holds for the Indenture Trustee); or (C) if securities
entitlements (within the meaning of Section 8-102 of the UCC as enacted in
Illinois) representing interests in securities or other financial assets (or
interests therein) held by a securities intermediary (within the meaning of
said Section 8-102), a securities intermediary indicates by book entry that a
security or other financial asset has been credited to

 15
 

the Indenture Trustee’s securities account with such securities
intermediary.  Any such Qualified
Eligible Investment may be purchased by or through the Indenture Trustee or any
of its affiliates.

“Rating Agency” means each of Moody’s and Standard & Poor’s,
so long as such Persons maintain a rating on the Notes; and if either Moody’s
or Standard & Poor’s no longer maintains a rating on the Notes, such other
nationally recognized statistical rating organization selected by the Trust
Depositor.

“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.

“Record Date” means, with respect to any Distribution Date,
the close of business on the day immediately preceding such Distribution Date.

“Regulation AB”  means Subpart 229.1100 - Asset Backed
Securities (Regulation AB), 17 C.F.R. Sections 229.1100-229.1123, as amended
from time to time and as clarified and interpreted by the Securities and
Exchange Commission or its staff from time to time.

“Reimbursement
Amount” has the meaning assigned in Section 7.03 hereof.

“Replacement
Interest Rate Swap Agreement” means any ISDA Master Agreement, the
Schedule and Credit Support Annex thereto, each dated after the Closing Date,
between a Replacement Swap Counterparty and the Issuer, and the Confirmations
thereto, each dated after the Closing Date, and entered into pursuant to such
ISDA Master Agreement, and pursuant to the conditions set forth in the Interest
Rate Swap Agreement, as the same may be amended or supplemented from time to
time in accordance with the terms thereof.

“Replacement
Swap Counterparty” means any swap counterparty under a Replacement
Interest Rate Swap Agreement that is an “Eligible Replacement” (as defined in
the Interest Rate Swap Agreement).

“Required Holders” means Noteholders evidencing more than 50%
of the aggregate Outstanding Amount of the Controlling Class.

“Required Rate” means 9.20%.

“Reportable Event” means any event required
to be reported on Form 8-K.

“Reserve Fund” means the Reserve Fund established and
maintained pursuant to Section 7.06 hereof.

“Reserve Fund Deposits” means all moneys deposited in the
Reserve Fund from time to time including, but not limited to, the Reserve Fund
Initial Deposit as well as any monies deposited therein pursuant to
Section 7.05(a), all investments and reinvestments thereof, earnings
thereon, and proceeds of the foregoing, whether now or hereafter existing.

 16

“Reserve Fund
Initial Deposit” means $1,955,000.74.

“Reserve Fund Trigger Event” means the occurrence with
respect to any Distribution Date (i) the Average Delinquency Ratio for such
Distribution Date is equal to or greater than (a) 2.50% with respect to any
Distribution Date which occurs within the period from the Closing Date to, and
inclusive of, the first anniversary of the Closing Date, (b) 3.00% with respect
to any Distribution Date which occurs within the period from the day after the
first anniversary of the Closing Date to, and inclusive of, the second
anniversary of the Closing Date, or (c) 3.50% with respect to any Distribution
Date which occurs within the period from the day after the second anniversary
of the Closing Date to, and inclusive of, the third anniversary of the Closing
Date or (d) 4.00% with respect to any Distribution Date occurring after the
third anniversary of the Closing Date; (ii) the Average Loss Ratio for such
Distribution Date is equal to or greater than (a) 4.00% with respect to any
Distribution Date which occurs within the period from the Closing Date to, and
inclusive of, the second anniversary of the Closing Date or (b) 3.75% with
respect to any Distribution Date which occurs following the second anniversary
of the Closing Date;  or (iii) the
Cumulative Loss Ratio for such Distribution Date is equal to or greater than
(a) 1.75% with respect to any Distribution Date which occurs within the period
from the Closing Date to, and inclusive of, the first anniversary of the
Closing Date, (b) 2.75% with respect to any Distribution Date which occurs
within the period from the day after the first anniversary of the Closing Date
to, and inclusive of, the second anniversary of the Closing Date, (c) 3.75%
with respect to any Distribution Date which occurs within the period from the
day after the second anniversary of the Closing Date to, and inclusive of, the
third anniversary of the Closing Date, or (d) 4.00% with respect to any
Distribution Date occurring after the third anniversary of the Closing Date.

A
Reserve Fund Trigger Event shall be deemed to have terminated with respect to a
Distribution Date if no Reserve Fund Trigger Event shall exist with respect to
three consecutive Distribution Dates (inclusive of the respective Distribution
Date).

“Responsible Officer” means, with respect to the Owner
Trustee, any officer in its Corporate Trust Administration Department (or any
similar group of a successor Owner Trustee) and with respect to the Indenture
Trustee, the chairman and any vice chairman of the board of directors, the
president, the chairman and vice chairman of any executive committee of the
board of directors, every vice president, assistant vice president, the
secretary, every assistant secretary, cashier or any assistant cashier,
controller or assistant controller, the treasurer, every assistant treasurer,
every trust officer, assistant trust officer and every other authorized officer
or assistant officer of the Indenture Trustee customarily performing functions
similar to those performed by persons who at the time shall be such officers,
respectively, or to whom a corporate trust matter is referred because of
knowledge of, familiarity with, and authority to act with respect to a
particular matter.

“Second Priority Principal Distributable Amount”  means, with respect to any Distribution Date, an amount,
not less than zero, equal to the result of (a) the aggregate Outstanding
Amount of the Class A Notes and Class B Notes as of the preceding
Distribution Date (after giving effect to any principal payments made on the
Class A Notes and Class B Notes on that preceding Distribution Date),
minus (b) the sum of (i) the amount of principal distributed in respect of
the First Priority Principal Distributable Amount on such Distribution Date and
(ii) the Aggregate Principal Balance at
the end of Due Period related to that Distribution Date; provided, however,
that the Second Priority Principal Distributable Amount shall not exceed the
Outstanding Amount of the Class A Notes and Class B Notes after giving effect
to the other amounts distributable in respect of principal on the Class A Notes
and Class B Notes to

 17
 

be deposited in the Note Distribution Account in respect of the First
Priority Principal Distributable Amount on such Distribution Date).

“Securities”
means the Notes, or any of them.

“Securities
Act”  means the Securities Act of 1933, as amended.

“Securityholders”
means the Holders of the Notes.

“Seller” means Harley-Davidson Credit Corp., a Nevada
corporation, or its successor, in its capacity as Seller of Contract Assets
under the Transfer and Sale Agreement.

“Senior Swap Termination Payment” means any Swap Termination
Payment owed by the Issuer to the Swap Counterparty under the Interest Rate
Swap Agreement except if the Swap Counterparty is the “defaulting party” or “sole
affected party” (other than in connection with a “tax event” or “illegality”)
under the Interest Rate Swap Agreement.

“Servicer” means Harley-Davidson Credit Corp., a Nevada
corporation, or its successor, until any Service Transfer hereunder and
thereafter means the Successor Servicer appointed pursuant to Article VIII
below with respect to the duties and obligations required of the Servicer under
this Agreement.

“Service
Transfer” has the meaning assigned in Section 8.03(a).

“Servicing Criteria” means the “servicing criteria” set forth
in Item 1122(d) of Regulation AB.

“Servicing Fee” means, on any Determination Date, the sum of
(a) the Monthly Servicing Fee payable on the related Distribution Date, (b)
Late Payment Penalty Fees received by the Servicer during the related Due
Period, and (c) extension fees received by the Servicer during the related Due
Period.

“Servicing Officer” means any officer of the Servicer
involved in, or responsible for, the administration and servicing of Contracts
whose name appears on a list of servicing officers appearing in an Officer’s
Certificate furnished to the Indenture Trustee by the Servicer, as the same may
be amended from time to time.

“Shortfall” means, with respect to a Distribution Date, an
amount equal to the excess (if any) of (a) the sum of the amounts payable
pursuant to (1) clauses (iv) through (x) of Section 7.05(a), (2) clauses (i)
through (vi) of Section 7.05(b) or (3) clauses (i) through (vi) of Section
7.05(c), as applicable, over (b) Available Monies for such Distribution Date
minus the amounts payable pursuant to clauses (i) through (iii) of Section
7.05(a) on such Distribution Date.

“Solvent” means, as to any Person at any time, that (a) the
fair value of the property of such Person is greater than the amount of such
Person’s liabilities (including disputed, contingent and unliquidated
liabilities) as such value is established and liabilities evaluated for
purposes of Section 101(31) of the Bankruptcy Code; (b) the present fair
saleable value of the property of such Person in an orderly liquidation of such
Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured; (c)
such Person is able to realize upon its property and pay its debts and other
liabilities (including disputed, contingent and unliquidated liabilities) as
they mature in the normal course of business; (d) such Person does not intend

 18
 

to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay as such debts and liabilities mature; and
(e) such Person is not engaged in business or a transaction, and is not about
to engage in a business or a transaction, for which such Person’s property
would constitute unreasonably small capital.

“Specified Reserve Fund Balance” means, with respect to any
Distribution Date, an amount equal to the greater of:

(a)                                  1.50% of the
Principal Balance of the Contracts in the Trust as of the last day of the related
Due Period; provided, however, in the event a
Reserve Fund Trigger Event occurs and is continuing for three consecutive
Distribution Dates (inclusive of the respective Distribution Date), the
Specified Reserve Fund Balance shall be equal to 6.00% of the Principal Balance
of the Contracts in the Trust as of the last day of the immediately preceding
Due Period; and

(b)                                 1.00% of the
aggregate of the Initial Class A-1 Note Balance, Initial Class A-2a Note
Balance, Initial Class A-2b Note Balance, Initial Class A-3 Note Balance,
Initial Class A-4 Note Balance, Initial Class B Note Balance and Initial Class
C Note Balance;

provided, however, in no event shall the Specified Reserve
Fund Balance be greater than the aggregate outstanding principal balance of the
Securities.  As of any Distribution Date,
the amount of funds actually on deposit in the Reserve Fund may, in certain
circumstances, be less than the Specified Reserve Fund Balance.

“Standard & Poor’s” means Standard & Poor’s Ratings
Services, a division of The McGraw Hill Companies, Inc., or any successor
thereto.

“Subordinated Swap Termination Payment” means any Swap
Termination Payment owed by the Issuer to the Swap Counterparty under the
Interest Rate Swap Agreement other than a Senior Swap Termination Payment.

“Successor
Servicer” means a servicer described in Section 8.03(b).

“Supplement”
means the Prospectus Supplement dated August 23, 2007.

“Swap
Collateral Account” means a trust account as described in Section
7.12 maintained in the name of the Indenture Trustee and which shall be an
Eligible Account.

“Swap
Counterparty” means JPMorgan Chase Bank, National Association, as
the swap counterparty under the Interest Rate Swap Agreement, or any successor
or replacement swap counterparty from time to time.

“Swap
Replacement Proceeds” means any amounts received from a Replacement
Swap Counterparty in consideration for entering into a Replacement Interest
Rate Swap Agreement for a terminated Interest Rate Swap Agreement.

“Swap
Termination Payment” means the payment due to the Swap Counterparty
by the Trust or to the Trust by the Swap Counterparty under the Interest Rate
Swap Agreement, as applicable, including interest that may accrue thereon,
arising from a termination of the Interest Rate Swap Agreement in

 19
 

connection with the occurrence of an “event of
default” or “termination event” under the Interest Rate Swap Agreement.

“Swap
Termination Payment Account” means an Eligible Account maintained in
the name of the Indenture Trustee pursuant to Section 7.12.

“Transaction Documents” means this Agreement, the Transfer
and Sale Agreement, the Lockbox Agreement, the Indenture, the Trust Agreement,
the Administration Agreement, the Note Depository Agreement and the Interest
Rate Swap Agreement.

“Transfer and Sale Agreement” means the Transfer and Sale
Agreement dated as of the date hereof by and between the Seller and the Trust
Depositor, as amended, supplemented or otherwise modified from time to time.

“Trust” means the trust created by the Trust Agreement, comprised
of the Trust Corpus.

“Trust Accounts” means, collectively, the Collection Account,
the Note Distribution Account, the Reserve Fund, the Yield Supplement Account
and the Swap Termination Payment Account (to the extent established in
accordance with Section 7.12), or any of them.

“Trust Account Property” means the Trust Accounts, all
amounts and investments held from time to time in any Trust Account (whether in
the form of deposit accounts, physical property, book-entry securities,
uncertificated securities or otherwise), including the Reserve Fund Initial
Deposit and the Yield Supplement Initial Deposit, and all proceeds of the
foregoing.

“Trust Agreement” means the Trust Agreement, dated as of
August 1, 2007, between the Trust Depositor and the Owner Trustee.

“Trust Corpus” has the meaning given to such term in Section
2.01(a) hereof.

“Trust Depositor”  has the
meaning assigned such term in the preamble hereunder or any successor thereto.

“Trust Estate”  shall have the meaning specified in the Trust Agreement.

“Trustees”
means the Owner Trustee and the Indenture Trustee.

“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.

“Uncollectible Advance” means with respect to any
Determination Date and any Contract, the amount, if any, advanced by the
Servicer pursuant to Section 7.03  which
the Servicer has as of such Determination Date determined in good faith will
not be ultimately recoverable by the Servicer from

 20
 

insurance policies on the related Motorcycle, the related Obligor or
out of Net Liquidation Proceeds with respect to such Contract.  The determination by the Servicer that it has
made an Uncollectible Advance, or, that any Advance proposed to be made would
be an Uncollectible Advance, shall be evidenced by an Officer’s Certificate
delivered to the Trustees.

“Underwriters” has the meaning set forth in the Underwriting
Agreement.

“Underwriting Agreement” means the Underwriting Agreement, dated
August 23, 2007, by and among the Trust Depositor, the Seller and the
Underwriters.

“United
States” means the United States of America.

“Vice President” of any Person means any vice president of
such Person, whether or not designated by a number or words before or after the
title “Vice President”  who
is a duly elected officer of such Person.

“WTC”
means Wilmington Trust Company, in its individual capacity.

“Yield Supplement Account” means the account designated as
the Yield Supplement Account in, and which is established and maintained
pursuant to, Section 7.07 hereof.

“Yield Supplement Amount” for each Distribution Date means
the sum of the following amounts in respect of each Discount Contract (other
than a Discount Contract which is a Defaulted Contract): the excess, if any, of
(a) 30 days’ interest on the Principal Balance, as of the first day
of the related Due Period, of that Discount Contract at a rate equal to the
Required Rate over (b) 30 days’ interest on the Principal Balance, as
of the first day of the related Due Period, at that Discount Contract’s
Contract Interest Rate.

“Yield
Supplement Initial Deposit” means $27,386,672.85.

“Yield Supplement Withdrawal Amount” means the lesser of (1)
the amount on deposit in the Yield Supplement Account and (2) the sum of (A)
the Yield Supplement Amount, and (B) after giving effect to the withdrawal of
the Yield Supplement Amount, the amount by which the amount on deposit in the
Yield Supplement Account exceeds the Maximum Yield Supplement Amount.

Section 1.02.                         Usage of Terms.  With
respect to all terms in this Agreement, the singular includes the plural and
the plural the singular; words importing any gender include the other genders;
references to “writing” include printing, typing, lithography and other means
of reproducing words in a visible form; references to agreements and other
contractual instruments include all amendments, modifications and supplements
thereto or any changes therein entered into in accordance with their respective
terms and not prohibited by this Agreement; references to Persons include their
permitted successors and assigns; and the term “including” means “including
without limitation.”

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

Section
1.04.                         Calculations. 
Except as otherwise provided herein, all interest rate and basis point
calculations hereunder will be made on the basis of a 360-day year and twelve
30-day months and

 21
 

will be carried out to at least three decimal
places.

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

ARTICLE TWO

TRANSFER OF CONTRACTS

Section
2.01.                         Closing. 
(a)  On the Closing Date, the
Trust Depositor shall transfer, assign, set over and otherwise convey to the
Trust by execution of an assignment substantially in the form of Exhibit A hereto, without recourse other
than as expressly provided herein, (i) all the right, title and interest of the
Trust Depositor in and to the Contracts listed on the List of Contracts
delivered on the Closing Date (including, without limitation, all security
interests and all rights to receive payments which are collected pursuant
thereto after the Cutoff Date, including any liquidation proceeds therefrom,
but excluding any rights to receive payments which were collected pursuant
thereto on or prior to the Cutoff Date), (ii) all rights of the Trust Depositor
under any physical damage or other individual insurance policy (and rights
under a “forced placed” policy,
if any), any debt insurance policy or any debt cancellation agreement relating
to any such Contract, an Obligor or a Motorcycle securing such Contract, (iii)
all security interests in each such Motorcycle, (iv) all documents contained in
the related Contract Files, (v) all rights (but not the obligations) of the
Trust Depositor under any related motorcycle dealer agreements between dealers
(i.e., the originators of certain Contracts) and the Seller, (vi) all rights of
the Trust Depositor in the Lockbox, the Lockbox Account and the related Lockbox
Agreement to the extent they relate to the Contracts, (vii) all rights (but not
the obligations) of the Trust Depositor under the Transfer and Sale Agreement,
including but not limited to the Trust Depositor’s rights under Article V
thereof, (viii) the remittances, deposits and payments made into the Trust
Accounts from time to time and amounts in the Trust Accounts from time to time
(and any investments of such amounts), (ix) all rights of the Trust Depositor
to certain rebates of premiums and other amounts relating to insurance
policies, debt cancellation agreements, extended service contracts or other
repair agreements and other items financed under such Contracts and (x) all
proceeds and products of the foregoing (the property in clauses (i)-(x)
above, being the “Trust Corpus”).  Although the Trust Depositor and the Owner
Trustee agree that such transfer is intended to be a transfer of ownership of
the Trust Corpus, rather than the granting of a security interest to secure a
borrowing, and that the Trust Corpus shall not be property of the Trust
Depositor, in the event such transfer is deemed to be of a mere security
interest to secure a borrowing, the Trust Depositor shall be deemed to have
granted the Trust a perfected first priority security interest in such Trust
Corpus and this Agreement shall constitute a security agreement under
applicable law.

Section 2.02.                         Conditions to the Closing.  On or
before the Closing Date, the Trust Depositor shall deliver or cause to be
delivered the following documents to the Owner Trustee and the Indenture
Trustee:

(a)                               The List of Contracts, certified by the
Chairman of the Board, President or any Vice President of the Trust Depositor,
together with an assignment substantially in the form of Exhibit A
hereto.

 22
 

(b)                                 A certificate of an officer of the Seller
substantially in the form of Exhibit B to
the Transfer and Sale Agreement and of an officer of the Trust Depositor
substantially in the form of Exhibit B
hereto.

(c)                                  Opinions of counsel for the Seller and the
Trust Depositor in form and substance reasonably satisfactory to the
Underwriters (and including as an addressee thereof each Rating Agency).

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

(e)                                  Copies of resolutions of the Board of
Directors of each of the Seller/Servicer and the Trust Depositor or of the
Executive Committee of the Board of Directors of each of the Seller/Servicer
and the Trust Depositor approving the execution, delivery and performance of
this Agreement and the other Transaction Documents to which any of them is a
party, as applicable, and the transactions contemplated hereunder and
thereunder, certified in each case by the Secretary or an Assistant Secretary
of the Seller/Servicer and the Trust Depositor.

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

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

(h)                                 An Officer’s Certificate listing the Servicer’s
Servicing Officers.

(i)                                     Evidence of deposit in the Collection Account
of all funds received with respect to the Contracts after the Cutoff Date to
the Closing Date, together with an Officer’s Certificate from the Trust
Depositor to the effect that such amount is correct.

(j)                                     The Officer’s Certificate of the Seller
specified in Section 2.02(h) of the Transfer and Sale Agreement.

(k)                                  Evidence of deposit in the Reserve Fund of
the Reserve Fund Initial Deposit by the Owner Trustee.

(l)                                     Evidence of deposit in the Yield Supplement
Account of the Yield Supplement Initial Deposit by the Owner Trustee.

 23
 

(m)                               A fully executed Transfer and Sale Agreement.

(n)                                 A fully executed Trust Agreement.

(o)                                 A fully executed Administration Agreement.

(p)                                 A fully executed Indenture.

(q)                                 A fully executed Interest Rate Swap
Agreement.

ARTICLE THREE

REPRESENTATIONS AND WARRANTIES

The
Seller under the Transfer and Sale Agreement has made each of the
representations and warranties set forth in Exhibit J
hereto and has consented to the assignment by the Trust Depositor to the Issuer
of the Trust Depositor’s rights with respect thereto.  Such representations speak as of the
execution and delivery of this Agreement and as of the Closing Date, but shall
survive the transfer and assignment of the Contracts to the Trust.  Pursuant to Section 2.01 of this Agreement,
the Trust Depositor has assigned, transferred and conveyed to the Issuer as
part of the Trust Corpus its rights under the Transfer and Sale Agreement,
including without limitation, the representations and warranties of the Seller
therein as set forth in Exhibit J
attached hereto, together with all rights of the Trust Depositor with respect
to any breach thereof including any right to require the Seller to reacquire
any Contract in accordance with the Transfer and Sale Agreement.  It is understood and agreed that the
representations and warranties set forth or referred to in this Section shall
survive delivery of the Contract Files to the Owner Trustee or any custodian.

The
Trust Depositor hereby represents and warrants to the Trust and the Indenture
Trustee that it has entered into the Transfer and Sale Agreement with the
Seller, that the Seller has made the representations and warranties in the
Transfer and Sale Agreement as set forth in Exhibit J hereto,
that such representations and warranties run to and are for the benefit of the
Trust Depositor, and that pursuant to Section 2.01 of this Agreement the Trust
Depositor has transferred and assigned to the Trust all rights of the Trust
Depositor to cause the Seller under the Transfer and Sale Agreement to
reacquire Contracts in the event of a breach of such representations and
warranties.

Section
3.01.                         Representations and
Warranties Regarding the Trust Depositor.  By its execution of this
Agreement, the Trust Depositor represents and warrants to the Trust, the
Indenture Trustee and the Noteholders that:

(a)                                  Assumption of Seller’s
Representations and Warranties.  The representations and warranties set forth
in Exhibit J are true and correct.

(b)                                 Organization and Good Standing.  The
Trust Depositor 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.  The Trust Depositor
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

 24
 

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
other) of the Trust Depositor or the Trust.

(c)                                  Authorization; Valid Sale;
Binding Obligations.  The Trust Depositor has the power and
authority to make, execute, deliver and perform its obligations under this
Agreement and the other Transaction Documents to which it is a party and all of
the transactions contemplated under this Agreement and the other Transaction
Documents to which it is a party, and to create the Trust and cause it to make,
execute, deliver and perform its obligations under this Agreement and the other
Transaction Documents to which it 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 it is a party and to cause
the Trust to be created.  This Agreement
shall effect a valid transfer and assignment of the Trust Corpus, enforceable
against the Trust Depositor and creditors of and purchasers from the Trust
Depositor.  This Agreement and the other
Transaction Documents to which the Trust Depositor is a party constitute the
legal, valid and binding obligation of the Trust Depositor 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.

(d)                                 No Consent Required.  The
Trust Depositor 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 or the other Transaction Documents to which it is a party.

(e)                                  No Violations.  The
execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party by the Trust Depositor, and the consummation
of the transactions contemplated hereby and thereby, will not violate any
provision of any existing law or regulation or any order or decree of any court
or of any Federal or state regulatory body or administrative agency having
jurisdiction over the Trust Depositor or any of its properties or the Articles
of Incorporation or Bylaws of the Trust Depositor, or constitute a material
breach of any mortgage, indenture, contract or other agreement to which the
Trust Depositor is a party or by which the Trust Depositor or any of the Trust
Depositor’s properties may be bound, or result in the creation or imposition of
any security interest, lien, charge, pledge, preference, equity or encumbrance
of any kind upon any of its properties pursuant to the terms of any such
mortgage, indenture, contract or other agreement, other than as contemplated by
the Transaction Documents.

(f)                                    Litigation.  No
litigation or administrative proceeding of or before any court, tribunal or
governmental body is currently pending, or to the knowledge of the Trust
Depositor threatened, against the Trust Depositor or any of its properties or
with respect to this Agreement, the other Transaction Documents to which it is
a party or the Notes (1) which, if adversely determined, would in the opinion
of the Trust Depositor have a material adverse effect on the business, properties,
assets or condition (financial or otherwise) of the Trust Depositor or the
Trust or the transactions contemplated by this Agreement or the other
Transaction Documents to which the Trust Depositor is a party or (2) seeking to
adversely affect the federal income tax or other federal, state or local tax
attributes of the Certificate or Notes.

 25
 

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

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

Such
representations speak as of the execution and delivery of this Agreement and as
of the Closing Date, but shall survive the transfer and assignment of the
Contracts to the Trust.

Section
3.02.                         Representations and
Warranties Regarding the Servicer.  The Servicer represents and
warrants to the Trust, the Indenture Trustee and the Noteholders that:

(a)                                  Organization and Good Standing.  The
Servicer 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.  The Servicer 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 the Servicer or
the Trust.  The Servicer 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 hereof other
than such licenses the failure to obtain would not have a material adverse
effect on the business, properties, assets, or condition (financial or
otherwise) of the Servicer or on the ability of the Servicer to perform its
obligations hereunder.

(b)                                 Authorization; Binding
Obligations.  The Servicer has the power and authority to
make, execute, deliver and perform this Agreement and the other Transaction
Documents to which the Servicer is a party and all of the transactions
contemplated under this Agreement and the other Transaction Documents to which
the Servicer 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 Servicer is a party.  This Agreement and the other Transaction
Documents to which the Servicer is a party constitute the legal, valid and binding
obligation of the Servicer 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.  The
Servicer 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 Servicer is a party.

(d)                                 No Violations.  The
execution, delivery and performance of this Agreement and the other Transaction
Documents to which the Servicer is a party by the Servicer will not violate any
provisions of any existing law or regulation or any order or decree of any
court or of any

 26
 

Federal or state regulatory body or administrative agency having
jurisdiction over the Servicer or any of its properties or the Articles of
Incorporation or Bylaws of the Servicer, or constitute a material breach of any
mortgage, indenture, contract or other agreement to which the Servicer is a
party or by which the Servicer or any of the Servicer’s properties may be
bound, or result in the creation of or imposition of any security interest,
lien, pledge, preference, equity or encumbrance of any kind upon any of its
properties pursuant to the terms of any such mortgage, indenture, contract or
other agreement, other than this Agreement.

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

ARTICLE FOUR

PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

Section
4.01.                         Custody of Contracts.  (a)
Subject to the terms and conditions of this Section 4.01, the contents of each
Contract File shall be held by the Servicer, or its custodian, for the benefit
of, and as agent for, the Trust as the owner thereof and the Indenture Trustee.

(b)                                 The Servicer
agrees to maintain the related Contract Files at its offices where they are
currently maintained, or at such other offices of the Servicer in the State of
Nevada as shall from time to time be identified to the Trustees  by written notice.  The Servicer may temporarily move individual
Contract Files or any portion thereof without notice as necessary to conduct
collection and other servicing activities in accordance with its customary
practices and procedures; provided, however,
that the Servicer will take all action necessary to maintain the perfection of
the Trust’s interest in the Contracts and the proceeds thereof.  It is intended that, by the Servicer’s
agreement pursuant to Section 4.01(a) above and this Section 4.01(b), the
Trustees  shall be deemed to have
possession of the Contract Files for purposes of Section 9-313 of the
Uniform Commercial Code of the State in which the Contract Files are located.

(c)                                  As custodian,
the Servicer shall have the following powers and perform the following duties:

(i)                                     hold, or cause the Servicer’s custodian to
hold, the Contract Files on behalf of the Trust, maintain accurate records
pertaining to each Contract to enable it to comply with the terms and
conditions of this Agreement, maintain a current inventory thereof and certify
to the Owner Trustee and the Indenture Trustee annually that it, or its
custodian, continues to maintain possession of such Contract Files;

(ii)                                  implement policies and procedures in writing
and signed by a Servicing Officer with respect to persons authorized to have
access to the Contract Files on the Servicer’s premises

 27
 

and the receipting for Contract Files taken from their storage area by
an employee of the Servicer for purposes of servicing or any other purposes;

(iii)                               attend to all details in connection with maintaining custody of the
Contract Files on behalf of the Trust;

(iv)                              at all times maintain, or cause the Servicer’s custodian to maintain,
the original of the fully executed Contract in accordance with its customary
practices and procedures, except as may be necessary to conduct collection and
servicing activities in accordance with its customary practices and procedures;
and

(v)                                 as promptly as practicable after the Closing
Date, and in any event within 60 days thereof, deliver an Officer’s Certificate
to the Owner Trustee and the Indenture Trustee certifying that as of a date no
earlier than the Closing Date it has conducted an inventory of the Contract
Files and that there exists a Contract File for each Contract and stating all
exceptions to such statement, if any.

(d)                                 In performing
its duties under this Section 4.01, the Servicer agrees to act with reasonable
care, using that degree of skill and care that it exercises with respect to
similar contracts for the installment purchase of consumer goods owned and/or
serviced by it, and in any event with no less degree of skill and care than
would be exercised by a prudent servicer of motorcycle conditional sales
contracts and promissory notes and security agreements.  The Servicer shall promptly report to the
Owner Trustee and the Indenture Trustee any failure by it, or its custodian, to
hold the Contract Files as herein provided and shall promptly take appropriate
action to remedy any such failure.  In
acting as custodian of the Contract Files, the Servicer further agrees not to
assert any legal or beneficial ownership interest in the Contracts or the
Contract Files, except as provided in Section 5.06.  The Servicer agrees to indemnify the
Noteholders, the Certificateholder, the Owner Trustee and the Indenture Trustee
for any and all liabilities, obligations, losses, damages, payments, costs, or
expenses of any kind whatsoever which may be imposed on, incurred by or
asserted against the Noteholders, the Certificateholder, the Owner Trustee and
the Indenture Trustee as the result of any act or omission by the Servicer
relating to the maintenance and custody of the Contract Files; provided, however, that the Servicer will not be liable for
any portion of any such amount resulting from the gross negligence or willful
misconduct of any Noteholder, Certificateholder, the Owner Trustee or the
Indenture Trustee.  The Trustees shall
have no duty to monitor or otherwise oversee the Servicer’s performance as
custodian hereunder.

Section
4.02.                         Filing.  On
or prior to the Closing Date, the Servicer shall cause the UCC financing
statement(s) referred to in Section 2.02(g) hereof to be filed and from time to
time the Servicer shall take and cause to be taken such actions and execute
such documents as are necessary or desirable or as the Owner Trustee or
Indenture Trustee may reasonably request to perfect and protect the Trust’s
first priority perfected interest in the Trust Corpus 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.  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.”

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Section
4.03.                         Name Change or Relocation.  (a)
During the term of this Agreement, neither the Seller nor the Trust Depositor
shall change its name, identity or structure or change its state of
incorporation without first giving at least 30 days’ prior written notice to
the Owner Trustee and the Indenture Trustee.

(b)                                 If any change
in either the Seller’s or the Trust Depositor’s name, identity or structure or
other action would make any financing or continuation statement or notice of
lien filed under this Agreement seriously misleading within the meaning of
applicable provisions of the UCC or any title statute, the Servicer, 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’s interests in
the Trust Corpus and the proceeds thereof. 
In addition, neither the Seller nor the Trust Depositor shall change its
state of incorporation unless it has first taken such action as is advisable or
necessary to preserve and protect the Trust’s interest in the Trust
Corpus.  Promptly after taking any of the
foregoing actions, the Servicer shall deliver to the Owner Trustee and the
Indenture Trustee an opinion of counsel reasonably acceptable to the Owner
Trustee and the Indenture Trustee stating that, in the opinion of such counsel,
all financing statements or amendments necessary to preserve and protect the
interests of the Trust in the Trust Corpus and the Indenture Trustee in the
Collateral have been filed, and reciting the details of such filing.

Section
4.04.                         Costs and Expenses.  The
Servicer agrees to pay all reasonable costs and disbursements in connection
with the perfection and the maintenance of perfection, as against all third
parties, of the Trust’s right, title and interest in and to the Contracts
(including, without limitation, the security interest in the Motorcycles granted
thereby).

ARTICLE FIVE

SERVICING OF CONTRACTS

Section
5.01.                         Responsibility for Contract
Administration.  The Servicer will have the sole obligation to
manage, administer, service and make collections on the Contracts and perform
or cause to be performed all contractual and customary undertakings of the
holder of the Contracts to the Obligor. 
The Owner Trustee, at the written request of a Servicing Officer, shall
furnish the Servicer with any powers of attorney or other documents necessary
or appropriate in the opinion of the Owner Trustee to enable the Servicer to
carry out its servicing and administrative duties hereunder.  The Servicer is hereby appointed the servicer
hereunder until such time as any Service Transfer may be effected under Article
VIII.

Section
5.02.                         Standard of Care.  In
managing, administering, servicing and making collections on the Contracts
pursuant to this Agreement, the Servicer will exercise that degree of skill and
care consistent with the skill and care that the Servicer exercises with
respect to similar contracts serviced by the Servicer, and, in any event no
less degree of skill and care than would be exercised by a prudent servicer of
motorcycle conditional sales contracts and promissory note and security
agreements; provided, however,
that notwithstanding the foregoing, the Servicer shall not release or waive the
right to collect the unpaid balance of any Contract except that with respect to
a Contract that has become a Defaulted Contract, the Servicer, consistent with
its collection policies, may release or waive the right to collect the unpaid
balance of such Defaulted Contract in an effort to maximize collections
thereon.

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Section
5.03.                         Records.  The
Servicer shall, during the period it is servicer hereunder, maintain such books
of account and other records as will enable the Owner Trustee and the Indenture
Trustee to determine the status of each Contract.

Section
5.04.                         Inspection.  (a)
At all times during the term hereof, the Servicer shall afford the Owner
Trustee and  the Indenture Trustee and
their respective authorized agents reasonable access during normal business
hours to the Servicer’s records relating to the Contracts and will cause its
personnel to assist in any examination of such records by the Owner Trustee or
the Indenture Trustee, or such authorized agents and allow copies of the same
to be made.  The examination referred to
in this Section will be conducted in a manner which does not unreasonably
interfere with the Servicer’s normal operations or customer or employee
relations.  Without otherwise limiting
the scope of the examination the Owner Trustee or the Indenture Trustee may,
using generally accepted audit procedures, verify the status of each Contract
and review the Computer File and records relating thereto for conformity to
Monthly Reports prepared pursuant to Article IX and compliance with the
standards represented to exist as to each Contract in this Agreement.

(b)                                 At all times
during the term hereof, the Servicer shall keep available a copy of the List of
Contracts at its principal executive office for inspection by the Trustees.

Section
5.05.                         Trust Accounts.  (a)
On or before the Closing Date, the Trust Depositor shall establish the Trust
Accounts, each with and in the name of the Indenture Trustee for the benefit of
the Noteholders and the Swap Counterparty. 
The Indenture Trustee is hereby required to ensure that each of the
Trust Accounts is established and maintained as an Eligible Account.

(b)                                 The Indenture
Trustee shall deposit (or the Servicer shall deposit, with respect to payments
by or on behalf of the Obligors received directly by the Servicer), without
deposit into any intervening account, into the Collection Account as promptly
as practical (but in any case not later than the second Business Day following
the receipt thereof):

(i)                                     With respect to principal and interest on the
Contracts received after the Cutoff Date (which for the purpose of this
paragraph (b)(i) shall include those monies in the Lockbox Account allocable to
principal and interest on the Contracts), all such amounts received by the
Owner Trustee or Servicer;

(ii)                                  All Net Liquidation Proceeds related to the
Contracts;

(iii)                               The aggregate of the Purchase Prices for Contracts reacquired by the
Trust Depositor as described in Section 7.08;

(iv)                              All Advances made by the Servicer pursuant to Section 7.03(a);

(v)                                 All amounts paid by the Servicer in
connection with an optional purchase of the Contracts described in Section
7.10;

(vi)                              The aggregate of the Purchase Prices for Contracts purchased by the
Servicer as described in Section 7.11;

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(viii)                        All amounts received in respect of interest, dividends, gains, income
and earnings on investments of funds in the Trust Accounts (except the Reserve
Fund) as contemplated herein; and

(ix)                                All Net Swap Receipts and Swap Termination Payments received by it
under the Interest Rate Swap Agreement.

(c)                                  Reserved.

(d)                                 The Servicer
shall direct the Indenture Trustee, and the Indenture Trustee shall invest the
amounts in the Trust Accounts in Qualified Eligible Investments that are
payable on demand or that mature not later than one Business Day prior to the
next succeeding Distribution Date.  Once
such funds are invested, the Indenture Trustee shall not change the investment
of such funds.  Any loss on such
investments shall be deposited in the applicable Trust Account by the Servicer
out of its own funds immediately as realized. 
Funds in the Trust Accounts not so invested must be insured to the
extent permitted by law by the Bank Insurance Fund or the Savings Association
Insurance Fund of the Federal Deposit Insurance Corporation.  Subject to the restrictions herein, the
Indenture Trustee may purchase a Qualified Eligible Investment from itself or
an Affiliate.   Subject to the other
provisions hereof, the Indenture Trustee shall have sole control over each such
investment and the income thereon, and any certificate or other instrument
evidencing any such investment, if any, shall be delivered directly to the
Indenture Trustee or its agent, together with each document of transfer, if
any, necessary to transfer title to such investment to the Indenture Trustee in
a manner which complies with this Section 5.05(d).  All interest, dividends, gains upon sale and
other income from, or earnings on, investments of funds in the Trust Accounts
(other than the Reserve Fund) shall be deposited in the Collection Account
pursuant to Section 5.05(b) and distributed on the next Distribution Date
pursuant to Section 7.05.  The Trust
Depositor and the Trust agree and acknowledge that the Indenture Trustee is to
have  “control”
(within the meaning of Section 9-106 of the UCC) of collateral comprised of “Investment Property” (within the meaning of Section 9-102 of
the UCC) for all purposes of this Agreement.

(e)                                  Notwithstanding
anything to the contrary herein, the Servicer may remit payments on the
Contracts and Net Liquidation Proceeds to the Collection Account in next-day
funds or immediately available funds no later than 10:00 a.m., Central time, on
the Business Day prior to the next succeeding Distribution Date, but only for
so long as the short-term debt security rating of the Servicer is at least “Prime-1”
by Moody’s and “A-1” by Standard & Poor’s.

(f)                                    The Servicer
shall apply collections received in respect of a Contract as follows:

(i)                                     First, to
accrued interest with respect to such Contract;

(ii)                                  Second, to pay
any expenses and unpaid late charges or extension fees (if any) due and owing
under such Contract; and

(iii)                               Third, to
principal to the extent due and owing under such Contract.

(g)                                 Any collections
on a Contract remaining after application by the Servicer in accordance with
the provisions of Section 5.05(f) shall constitute an excess payment (an “Excess Payment”). 
Excess Payments constituting prepayments of principal shall be applied
as a prepayment of the Principal Balance of such Contract.  All other Excess Payments shall be permitted
to be retained by the Servicer.

 31
 

(h)                                 The Servicer
will, from time to time as provided herein, be permitted to withdraw or request
the withdrawal from the Collection Account any amount deposited therein that,
based on the Servicer’s good-faith determination, was deposited in error.

Section
5.06.                         Enforcement.  (a)
The Servicer will, consistent with Section 5.02, act with respect to the
Contracts in such manner as will maximize the receipt of all payments called
for under the terms of the Contracts. 
The Servicer acting as agent for the Trust pursuant to the Lockbox
Agreement shall use its best efforts to cause Obligors to make all payments on
the Contracts to the Lockbox Account (either directly by remitting payments to
the Lockbox, or indirectly by making payments through a credit card, direct
debit, the telephone or the internet to an account of the Servicer which
payments will be subsequently transferred from such account to the Lockbox
Account).  The Servicer will act in a
commercially reasonable manner with respect to the repossession and disposition
of a Motorcycle following a default under the related Contract with a view to
realizing proceeds at least equal to the Motorcycle’s fair market value.  If the Servicer determines that eventual
payment in full of a Contract is unlikely, the Servicer will follow its normal
practices and procedures to recover all amounts due upon that Contract,
including repossessing and disposing of the related Motorcycle at a public or
private sale or taking other action permitted by applicable law.  The Servicer will be entitled to recover all
reasonable out-of-pocket expenses incurred by it in liquidating a Contract and
disposing of the related Motorcycle.

(b)                                 The Servicer
may sue to enforce or collect upon Contracts, in its own name, if possible, or
as agent for the Trustees.  If the
Servicer elects to commence a legal proceeding to enforce a Contract, the act
of commencement shall be deemed to be an automatic assignment of the Contract
to the Servicer for purposes of collection only.  If, however, in any enforcement suit or legal
proceeding it is held that the Servicer may not enforce a Contract on the ground
that it is not a real party in interest or a holder entitled to enforce the
Contract, the Owner Trustee (or the Indenture Trustee) on behalf of the Trust
shall, at the Servicer’s expense, take such steps as the Servicer deems
reasonably necessary to enforce the Contract, including bringing suit in its
name or the names of the Noteholders under the Indenture, the Swap Counterparty
and the Certificateholder as owner of the Trust.

(c)                                  The Servicer
shall exercise any rights of recourse against third persons that exist with
respect to any Contract in accordance with the Servicer’s usual practice.  In exercising recourse rights, the Servicer
is authorized on the Trust’s behalf to reassign the Defaulted Contract or the
related Motorcycle to the Person against whom recourse exists at the price set
forth in the document creating the recourse; provided,
however, the Servicer in exercising recourse against any third
persons as described in the immediately preceding sentence shall do so in such
manner as to maximize the aggregate recovery with respect to the Contract; and provided further, however, that notwithstanding the
foregoing the Servicer in its capacity as such may exercise such recourse only
if such Contract (i) was not required to be reacquired by the Seller pursuant
to the Transfer and Sale Agreement or (ii) was required to be reacquired by the
Seller and the Seller has defaulted on such reacquisition obligation.

(d)                                 The Servicer
will not permit any rescission or cancellation of any Contract due to the acts
or omissions of the Trust Depositor.

(e)                                  Subject to
Section 5.02, the Servicer may grant extensions, rebates or adjustments on a
Contract; provided, however, that if the Servicer extends the date for final
payment by the Obligor of any Contract beyond the Class C Final Distribution
Date, it shall promptly purchase such Contract pursuant to Section 7.11.

 32

(f)                                    The Servicer
will not add to the outstanding Principal Balance of any Contract the premium
of any physical damage or other individual insurance on a Motorcycle securing
such Contract it obtains on behalf of the Obligor under the terms of such
Contract, but may create a separate Obligor obligation with respect to such
premium if and as provided by the Contract.

(g)                                 If the Servicer
shall have repossessed a Motorcycle on behalf of the Trust, the Servicer shall
either (i) maintain at its expense physical damage insurance with respect to
such Motorcycle, or (ii) indemnify the Trust against any damage to such
Motorcycle prior to resale or other disposition.  The Servicer shall not allow such repossessed
Motorcycles to be used in an active trade or business, but rather shall dispose
of the Motorcycle in a reasonable time in accordance with the Servicer’s normal
business practices.

Section
5.07.                         Trustees to Cooperate.  Upon
payment in full on any Contract, the Servicer shall (if the Servicer is not
then in possession of the Contracts and Contract Files) notify the Trustees and
request delivery of the Contract and Contract File to the Servicer.  Upon receipt of such notice and request, the
Trustees shall promptly release or cause to be released such Contract and Contract
File to the Servicer.  Upon receipt of
such Contract and Contract File, each of the Trust Depositor and the Servicer
is authorized to execute an instrument in satisfaction of such Contract and to
do such other acts and execute such other documents as the Servicer deems
necessary to discharge the Obligor thereunder and eliminate the security
interest in the Motorcycle related thereto. 
The Servicer shall determine when a Contract has been paid in full; to
the extent that insufficient payments are received on a Contract credited by
the Servicer as prepaid or paid in full and satisfied, the shortfall shall be
paid by the Servicer out of its own funds. 
From time to time as appropriate for servicing and repossession in
connection with any Contract, if the Servicer is not then in possession of the
Contracts and Contract Files, the Indenture Trustee shall, upon written request
of a Servicing Officer and delivery to the Indenture Trustee of a receipt
signed by such Servicing Officer, cause the original Contract and the related
Contract File to be released to the Servicer and shall execute such documents
as the Servicer shall deem reasonably necessary to the prosecution of any such
proceedings.  Such receipt shall obligate
the Servicer to return the original Contract and the related Contract File to
the Indenture Trustee when the need by the Servicer has ceased unless the
Contract shall be reacquired as described in Section 7.10.  Upon request of a Servicing Officer, the Indenture
Trustee shall perform such other acts as reasonably requested by the Servicer
and otherwise cooperate with the Servicer in the enforcement of the
Certificateholder’s rights and remedies with respect to Contracts.

Section
5.08.                         Costs and Expenses.  All
costs and expenses incurred by the Servicer in carrying out its duties
hereunder, fees and expenses of accountants and payments of all fees and
expenses incurred in connection with the enforcement of Contracts (including
enforcement of Defaulted Contracts and repossessions of Motorcycles securing
such Contracts when such Contracts are not reacquired pursuant to Section 7.08)
and all other fees and expenses not expressly stated hereunder to be for the
account of the Trust shall be paid by the Servicer and the Servicer shall not
be entitled to reimbursement hereunder.

Section
5.09.                         Maintenance of Security
Interests in Motorcycles.  The Servicer shall take such steps as are
necessary to maintain continuous perfection and the first priority of the
security interest created by each Contract in the related Motorcycle.  The Owner Trustee and the Indenture Trustee
hereby authorize the Servicer to take such steps as are necessary to perfect
such security interest and to maintain the first priority thereof in the event
of a relocation of a Motorcycle or for any other reason.

 33
 

Section
5.10.                         Successor Servicer/Lockbox
Agreements.  In the event the Servicer shall for any
reason no longer be acting as such, the Successor Servicer shall thereupon
assume all of the rights and obligations of the outgoing servicer under the
Lockbox Agreement; provided, however,
that the Successor Servicer shall not be liable for any acts or obligations of
the Servicer prior to such succession. 
In such event, the Successor Servicer shall be deemed to have assumed
all of the outgoing Servicer’s interest therein and to have replaced the
outgoing Servicer as a party to each such Lockbox Agreement to the same extent
as if such Lockbox Agreement had been assigned to the Successor Servicer,
except that the outgoing Servicer shall not thereby be relieved of any
liability or obligations on the part of the outgoing Servicer to the Lockbox
Bank under such Lockbox Agreement.  The
outgoing Servicer shall, upon the request of the Owner Trustee, but at the
expense of the outgoing Servicer, deliver to the Successor Servicer all
documents and records relating to each such Lockbox Agreement and an accounting
of amounts collected and held by the Lockbox Bank and otherwise use its best
efforts to effect the orderly and efficient transfer of any Lockbox Agreement
to the Successor Servicer.

Section
5.11.                         Separate Entity
Existence.  The Servicer agrees to take or refrain from
taking or engaging in with respect to the Trust Depositor, as applicable, each
of the actions or activities specified in the “substantive consolidation”
opinion of Winston & Strawn LLP (or in any related Certificate of the
Servicer) delivered on the Closing Date, upon which the conclusions expressed
therein are based.

ARTICLE SIX

THE TRUST DEPOSITOR

Section
6.01.                         Covenants of the Trust
Depositor.

(a)                                  Existence.  During the term of this Agreement, the Trust
Depositor will keep in full force and effect its existence, rights and
franchises as a corporation under the laws of the jurisdiction of its
incorporation 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 Agreement, the other
Transaction Documents and each other instrument or agreement necessary or appropriate
to the proper administration of this Agreement and the transactions
contemplated hereby.

(b)                                 Arm’s
Length Transactions.  During the
term of this Agreement, all transactions and dealings between the Trust
Depositor and its Affiliates will be conducted on an arm’s-length basis.

(c)                                  No
Other Business.  The Trust
Depositor shall not engage in any business other than financing, purchasing,
owning, selling and managing the Contracts in the manner contemplated by this
Agreement and the other Transaction Documents and activities incidental
thereto; provided, however, that the Trust
Depositor may purchase and transfer (or grant Liens in respect of) contracts
and/or other related assets similar to the Contracts to other Persons in
securitization or other non-recourse financing transactions involving the
Seller or any of its Affiliates (or with respect to the Contract Assets
themselves, following a release and reconveyance thereof from the Trust), on
terms and conditions (with respect to the liabilities imposed upon the Trust
Depositor by virtue of such transactions, as well as in respect of agreements
or restrictions concerning activities of the Trust Depositor and its relations
or interactions with the Seller or the Servicer or other applicable Affiliate relevant
to “bankruptcy remoteness” or “substantive consolidation” analysis), in each
case substantially similar to such terms and conditions applicable to the Trust
Depositor hereunder and under the other Transaction Documents.

 34
 

(d)                                 No
Borrowing.  The Trust
Depositor shall not issue, incur, assume, guarantee or otherwise become liable,
directly or indirectly, for (i) any Indebtedness except for any Indebtedness
permitted by or arising under the Transaction Documents or (ii) obligations in
connection with transactions described in the proviso of Section 6.01(c), as
limited thereby.  The proceeds of the
Notes shall be used exclusively to fund the Trust Depositor’s purchase of the
Contracts and the other assets specified in this Agreement and to pay the
transactional expenses of the Trust Depositor.

(e)                                  Guarantees,
Loans, Advances and Other Liabilities.  Except as otherwise contemplated by the
Transaction Documents or in connection with transactions described in Section
6.01(c), as limited thereby, the Trust Depositor 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.

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

(g)                                 Restricted
Payments.  Except as
permitted or contemplated by the Transaction Documents, the Trust Depositor
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 any owner of an equity interest in the
Trust Depositor, (ii) redeem, purchase, retire or otherwise acquire for value
any such equity interest or (iii) set aside or otherwise segregate any amounts
for any such purpose; it being understood that the Trust Depositor shall at all
times have the right to distribute funds received pursuant to the Transaction
Documents to its equity owner.

(h)                                 Separate
Entity Existence.   The Trust
Depositor shall:

(i)                                     Maintain its own deposit
account or accounts, separate from those of any Affiliate, with commercial
banking institutions.  The funds of the
Trust Depositor will not be diverted to any other Person or for other than
authorized uses of the Trust Depositor.

(ii)           Ensure
that, to the extent that it shares the same officers or other employees as any
of its members or Affiliates, the salaries of and the expenses related to
providing benefits to such officers and other employees shall be fairly
allocated among such entities, and each such entity shall bear its fair share
of the salary and benefit costs associated with all such common officers and
employees.

(iii)          Ensure
that, to the extent that it jointly contracts with any of its members or
Affiliates to do business with vendors or service providers or to share
overhead expenses, the costs incurred in so doing shall be allocated fairly
among such entities, and each such entity shall bear its fair share of such
costs.  To the extent that the Trust
Depositor contracts or does business with vendors or service providers when the
goods and services provided are partially for the benefit of any other Person,
the costs incurred in so doing shall be fairly allocated to or among such
entities for whose benefit the goods and services are provided, and each such
entity shall bear its fair share of such costs. 
All material transactions between Trust Depositor and any of its
Affiliates shall be only on an arm’s length basis.

 35
 

(iv)          To
the extent that the Trust Depositor and any of its members or Affiliates have
offices in the same location, there shall be a fair and appropriate allocation
of overhead costs among them, and each such entity shall bear its fair share of
such expenses.

(v)           Conduct
its affairs strictly in accordance with its By-laws and Articles of
Incorporation, and observe all necessary, appropriate and customary limited
liability company formalities, including, but not limited to, holding all
regular and special members’ and directors’ meetings appropriate to authorize
all entity action, keeping separate and accurate records of such meetings and
its actions, passing all resolutions or consents necessary to authorize actions
taken or to be taken, and maintaining accurate and separate books, records and
accounts, including, but not limited to, payroll and intercompany transaction
accounts.

(vi)                              Take or refrain from taking
or engaging in, as applicable, each of the actions or activities specified in
the “true sale” and “substantive consolidation” opinions of Winston &
Strawn LLP delivered on the Closing Date (or in any related certificate
delivered in connection therewith), upon which the conclusions expressed
therein are based.

Section
6.02.                         Liability of Trust
Depositor; Indemnities.  The Trust Depositor shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Trust Depositor under this Agreement.

The
Trust Depositor shall indemnify, defend and hold harmless the Issuer, the Owner
Trustee, WTC, the Indenture Trustee and the Servicer from and against any taxes
that may at any time be asserted against any such Person as a result of or
relating to the transactions contemplated herein and in the other Transaction
Documents, including any sales, gross receipts, gross margin, general
corporation, tangible personal property, Illinois personal property replacement
privilege or license taxes (but, in the case of the Issuer, not including any
taxes asserted with respect to, and as of the date of, the transfer of the
Contracts to the Issuer or the issuance and original sale of the Securities, or
federal or other income taxes arising out of distributions on the Certificate
or the Notes) and costs and expenses in defending against the same.

The
Trust Depositor shall indemnify, defend and hold harmless the Issuer, the Owner
Trustee, WTC, the Indenture Trustee and the Securityholders from and against
any loss, liability or expense incurred by reason of the Trust Depositor’s
willful misfeasance, bad faith or negligence (other than errors in judgment) in
the performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement.

The
Trust Depositor shall indemnify, defend and hold harmless the Issuer, the Owner
Trustee, WTC and the Indenture Trustee from and against all costs, expenses,
losses, claims, damages and liabilities arising out of or incurred in
connection with the acceptance or performance of the trusts and duties herein
and, in the case of the Owner Trustee, in the Trust Agreement and, in the case
of the Indenture Trustee, in the Indenture, except to the extent that such
cost, expense, loss, claim, damage or liability 
in the case of (i) the Owner Trustee or WTC, as the case may be, shall
be due to the willful misfeasance, bad faith or negligence of the Owner Trustee
or WTC, as the case may be, or shall arise from the breach by the Owner Trustee
or WTC, as the case may be, of any of its representations or warranties set
forth in Section 7.03 of the Trust Agreement, or (ii) the Indenture Trustee,
shall be due to the willful misfeasance, bad faith or negligence of the
Indenture Trustee.

 36
 

The
Trust Depositor shall be liable directly to and will indemnify any injured
party or any other creditor of the Trust for all losses, claims, damages,
liabilities and expenses of the Trust to the extent that Trust Depositor would
be liable if the Trust were a partnership under the Delaware Revised Uniform
Limited Partnership Act in which Trust Depositor were a general partner; provided, however, that Trust Depositor shall not be liable
for any losses incurred by a Certificateholder in the capacity of an investor
in the Trust Certificate or a Noteholder in the capacity of an investor in the
Notes.  In addition, any third party
creditors of the Trust (other than in connection with the obligations described
in the immediately preceding sentence for which Trust Depositor shall not be
liable) shall be deemed third party beneficiaries of this paragraph.  The obligations of Trust Depositor under this
paragraph shall be evidenced by the Trust Certificate described in the Trust
Agreement.

Indemnification
under this Section shall include, without limitation, reasonable fees and
expenses of counsel and expenses of litigation and shall survive the
termination of the Trust and the resignation or removal of the Trustees.  If the Trust Depositor shall have made any
indemnity payments pursuant to this Section and the Person to or on behalf of
whom such payments are made thereafter shall collect any of such amounts from
others, such Person shall promptly repay such amounts to the Trust Depositor,
without interest.

Notwithstanding
anything to the contrary herein, the obligations of the Trust Depositor under
this Section are solely the corporate obligations of the Trust Depositor and
shall be payable by it solely as provided in this Section.  The Trust Depositor shall only be required to
make such contributions required under this Section, (y) from funds available
to it pursuant to, and in accordance with the payment priorities set forth in
Section 7.05 and (z) only to the extent that it receives additional funds
designated for such purposes or to the extent that it has additional funds
available (other than funds described in the preceding clause (y)) that would
be in excess of amounts that would be necessary to pay the debt and other
obligations of such entity incurred in accordance with its certificate of
incorporation and all financing documents to which it is a party as they come
due.  In addition , no amount owing by the
Trust Depositor hereunder in excess of the liabilities that it is required to
pay in accordance with the preceding sentence shall constitute a “claim” (as
defined in Section 101(5) of the Bankruptcy Code) against it.  No recourse shall be had for the payment of
any amount owing hereunder or any other obligation of, or claim against the
Trust Depositor arising out of or based up on this Section against any
stockholder, employee, officer, agent, director or authorized person of the
Trust Depositor or Affiliate thereof; provided, however, that the foregoing
shall not relieve any such person or entity of any liability they might
otherwise have as a result of fraudulent actions or omissions taken by them.

Section
6.03.                         Merger or Consolidation of,
or Assumption of the Obligations of, Trust Depositor; Certain Limitations.  Notwithstanding any other provision in this Section and any provision
of law, the Trust Depositor shall not do any of the following:

(a)                                  engage in any business or
activity other than as set forth in its Articles of Incorporation;

(b)                                 without the affirmative vote of a majority of
the members of the Board of Directors of the Trust Depositor (which must
include the affirmative vote of at least two duly appointed Independent
directors) (i) dissolve or liquidate, in whole or in part, or institute
proceedings to be adjudicated bankrupt or insolvent, (ii) consent to the
institution of bankruptcy or insolvency proceedings against it, (iii) file a
petition seeking or consent to reorganization or relief under any applicable
federal or state law relating to bankruptcy, (iv) consent to the 

 37
 

appointment of a receiver, liquidator, assignee, trustee, sequestrator
(or other similar official) of the corporation or a substantial part of its
property, (v) make a general assignment for the benefit of creditors, (vi)
admit in writing its inability to pay its debts generally as they become due,
or (vii) take any corporate action in furtherance of the actions set forth in
clauses (i) through (vi) above; provided, however,
that no director may be required by any shareholder of the Trust Depositor to
consent to the institution of bankruptcy or insolvency proceedings against the
Trust Depositor so long as it is solvent; or

(c)                                  merge or consolidate with any other
corporation, company or entity or sell all or substantially all of its assets
or acquire all or substantially all of the assets or capital stock or other
ownership interest of any other corporation, company or entity unless the
Person formed by such consolidation or into which the Trust Depositor has merged
or the Person which acquires by conveyance, transfer or lease substantially all
the assets of the Trust Depositor as an entirety, can lawfully perform the
obligations of the Trust Depositor hereunder and executes and delivers to the
Owner Trustee and the Indenture Trustee an agreement in form and substance
reasonably satisfactory to the Owner Trustee and the Indenture Trustee which
contains an assumption by such successor entity of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by the Trust Depositor under this Agreement; provided
that the Trust Depositor shall provide notice of any merger, consolidation or
succession pursuant to this Section to each Rating Agency and shall receive
from each Rating Agency a letter to the effect that such merger, consolidation
or succession will not result in a qualification, downgrading or withdrawal of
the then-current ratings of each Class of Notes.

Section
6.04.                         Limitation on Liability of
Trust Depositor and Others.  The Trust Depositor and any director or
officer or employee or agent of the Trust Depositor may rely in good faith on
any document of any kind, prima facie properly executed and submitted by any
Person respecting any matters arising hereunder.  The Trust Depositor and any director or
officer or employee or agent of the Trust Depositor shall be reimbursed by the
Owner Trustee or the Indenture Trustee, as the case may be, for any contractual
damages, liability or expense incurred by reason of the Owner Trustee’s or the
Indenture Trustee’s willful misfeasance, bad faith or negligence (except errors
in judgment) in the performance of their respective duties hereunder, or by
reason of reckless disregard of their respective obligations and duties
hereunder.  The Trust Depositor shall not
be under any obligation to appear in, prosecute or defend any legal action that
shall not be incidental to its obligations under this Agreement, and that in
its opinion may involve it in any expense or liability.

Section
6.05.                         Trust Depositor Not to
Resign.  Subject to the provisions of Section 6.03,
the Trust Depositor shall not resign from the obligations and duties hereby
imposed on it as Trust Depositor hereunder.

ARTICLE SEVEN

DISTRIBUTIONS; RESERVE FUND; YIELD SUPPLEMENT ACCOUNT

Section
7.01.                         Monthly Distributions. 
(a)  Each Noteholder and
Certificateholder as of the related Record Date shall be paid on the next
succeeding Distribution Date by check mailed to such Noteholder or Certificateholder
at the address for such Noteholder or Certificateholder appearing on the Note
Register or Certificate Register or by wire transfer if such Noteholder or
Certificateholder provides

 38
 

written instructions to the Indenture Trustee or the
Owner Trustee, respectively, at least ten days prior to such Distribution Date.

(b)                                 The Indenture
Trustee shall serve as the paying agent hereunder (the “Paying Agent”)
and shall make the payments to or on behalf of the Noteholders and the
Certificateholder required hereunder. 
The Indenture Trustee hereby agrees that all amounts held by it for
payment hereunder will be held in trust for the benefit of the Noteholders and
the Certificateholder.

Section
7.02.                         Fees.  The
Indenture Trustee shall be paid the Indenture Trustee Fee and the Servicer
shall be paid the Monthly Servicing Fee, each of which shall be paid solely
from the monies and in accordance with the priorities described in Section
7.05(a).  No recourse may be had to the
Seller, Trust Depositor, Trustees, Servicer, or any of their respective Affiliates
in the event that amounts available under Section 7.05(a) are insufficient for
payment of the Indenture Trustee’s Fee and the Monthly Servicing Fee.

Section
7.03.                         Advances.  (a)
On each Determination Date, the Servicer shall compute the amount of Delinquent
Interest, if any, on the Contracts for the immediately preceding Due
Period.  Not later than each Distribution
Date, the Servicer shall advance (each, an “Advance”)
an amount equal to the Delinquent Interest for such Determination Date by
depositing such amount in the Collection Account; provided, however, that the Servicer shall be obligated to
advance Delinquent Interest only to the extent that the Servicer, in its sole
discretion, expects that such advance will not become an Uncollectible Advance.  The Servicer shall indicate on each Monthly
Report (i) the amount of Delinquent Interest, if any, on the Contracts for the
related Due Period and (ii) the amount of the Advance, if any, made by the
Servicer in respect of the Delinquent Interest pursuant to this Section
7.03.  If the amount of such Advance is
less than the amount of the Delinquent Interest, the relevant Monthly Report
shall be accompanied by a certificate of a Servicing Officer setting forth in
reasonable detail the basis for the determination by the Servicer that the
portion of the Delinquent Interest not advanced would become an Uncollectible
Advance.  By each Determination Date, the
Servicer shall determine the amount of prior unreimbursed Advances for which it
shall be entitled to be reimbursed pursuant to the provisions of this Section
(such amount, the “Reimbursement Amount”).  The Servicer shall be entitled to be
reimbursed for any outstanding Advance with respect to a Contract by means of a
first priority withdrawal from the Collection Account of such Reimbursement
Amount as provided in Section 7.05(a)(i).

Section
7.04.                         Reserved.

Section
7.05.                         Distributions; Priorities.

(a)                                  Except as provided in
Section 7.05(b) or (c), on each Distribution Date, the Indenture Trustee, at
the Servicer’s direction, will make the following allocations and distributions
of Available Monies in the following order of priority:

(i)                                    to the Servicer,
the Reimbursement Amount to the Servicer for Advances previously made;

(ii)                                 to the Servicer, the
Servicing Fee, including any unpaid Servicing Fee with respect to one or more
prior Due Periods;

 39
 

(iii)                              to the Indenture Trustee,
any accrued and unpaid Indenture Trustee Fee with respect to one or more prior
Due Periods;

(iv)                             to the Swap Counterparty,
any Net Swap Payment,

(v)                                pro rata
(i) to the Note Distribution Account, together with any amounts deposited
therein pursuant to Section 7.06, the applicable Note Interest Distributable
Amount with respect to such Distribution Date to the Class A Noteholders; provided, however, that if there are insufficient funds on
deposit in the Note Distribution Account to pay the entire amount of the Note
Interest Distributable Amount for the Class A Notes, then the amount in the
Note Distribution Account shall be applied to the Class A-1 Notes, the Class
A-2 Notes (pro rata, to the Class A-2a Noteholders
and the Class A-2b Noteholders), the Class A-3 Notes and the Class A-4 Notes, pro rata, on
the basis of the Note Interest Distributable Amount for each such Class of
Notes, and (ii) to the Swap Counterparty, any unpaid Senior Swap Termination
Payment;

(vi)                      to the Note Distribution Account,
together with any amounts deposited therein pursuant to Section 7.06, the First
Priority Principal Distributable Amount with respect to such Distribution Date
first, to the Class A-1 Noteholders until the Class A-1 Notes have been paid in
full, second, to the Class A-2 Noteholders (pro rata, to
the Class A-2a Noteholders and the Class A-2b Noteholders) until the Class A-2
Notes have been paid in full, third, to the Class A-3 Noteholders until the
Class A-3 Notes have been paid in full and, fourth, to the Class A-4
Noteholders until the Class A-4 Notes have been paid in full;

(vii)                   to the Note Distribution Account,
together with any amounts deposited therein pursuant to Section 7.06, the Note
Interest Distributable Amount with respect to such Distribution Date to the
Class B Noteholders;

(viii)                to the Note Distribution Account,
together with any amounts deposited therein pursuant to Section 7.06, the Second
Priority Principal Distributable Amount with respect to such Distribution Date,
first, to the Class A-1 Noteholders until the Class A-1 Notes have been paid in
full, second, to the Class A-2 Noteholders (pro rata, to
the Class A-2a Noteholders and the Class A-2b Noteholders) until the Class A-2
Notes have been paid in full, third, to the Class A-3 Noteholders until the
Class A-3 Notes have been paid in full, fourth, to the Class A-4 Noteholders
until the Class A-4 Notes have been paid in full and, fifth, to the Class B
Noteholders until the Class B Notes have been paid in full;

(ix)                        to the Note Distribution
Account, together with any amounts deposited therein pursuant to Section 7.06,
the Note Interest Distributable Amount with respect to such Distribution Date
to the Class C Noteholders;

(x)                           to the Note Distribution
Account, together with any amounts deposited therein pursuant to Section 7.06,
the Note Principal Distributable Amount with respect to such Distribution Date,
first, to the Class A-1 Noteholders until the Class A-1 Notes have been paid in
full, second, to the Class A-2 Noteholders (pro rata, to
the Class A-2a Noteholders and the Class A-2b Noteholders), until the Class A-2
Notes have been paid in full, third, to the Class A-3 Noteholders until the
Class A-3 Notes have been paid in full, fourth, to the Class A-4 Noteholders,
until the Class A-4 Notes have been paid in full, fifth, to the Class B
Noteholders

 40
 

until the Class B Notes have been paid in
full and, sixth, to the Class C Noteholders until the Class C Notes have been
paid in full;

(xi)                               any Excess Amounts to
the Reserve Fund up to the Specified Reserve Fund Balance;

(xii)                            to the Swap Counterparty,
any unpaid Subordinated Swap Termination Payment; and

(xiii)                         to the Holder of the Certificate.

(b)                                 If the Notes
have been declared immediately due and payable as provided in Section 5.02 of
the Indenture following the occurrence of an Event of Default under Section
5.01(iii) of the Indenture, then, until such time as the Notes have been paid
in full, Available Monies shall be allocated and distributed in the following
order of priority after payment of the amounts set forth in Section 7.05(a)(i),
(ii), (iii) and (iv):

(i)                                     pro
rata (i) to the Note Distribution Account, together with any amounts deposited
therein pursuant to Section 7.06, the applicable Note Interest Distributable
Amount with respect to such Distribution Date to the Class A Noteholders; provided, however, that if there are insufficient funds on
deposit in the Note Distribution Account to pay the entire amount of the Note
Interest Distributable Amount for the Class A Notes, then the amount in the
Note Distribution Account shall be applied to the Class A-1 Notes, the Class
A-2 Notes (pro rata, to the Class A-2a Noteholder
and the Class A-2b Noteholders), Class A-3 Notes and the Class A-4 Notes, pro rata, on the basis of the Note Interest Distributable
Amount for each such Class of Notes and (ii) to the Swap Counterparty, any
unpaid Senior Swap Termination Payment;

(ii)                                  to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, the First Priority Principal Distributable Amount with respect to
such Distribution Date first, to the Class A-1 Noteholders until the Class A-1
Notes have been paid in full and, second, to the Class A-2 Noteholders pro rata, to the Class A-2a Noteholders (pro rata, to the Class A-2a Noteholder and the Class A-2b
Noteholders) and the Class A-2b Noteholders, Class A-3 Noteholders and Class
A-4 Noteholders, pro rata,  based on the outstanding principal amount
of the related Classes of Notes, until such Classes of Notes have been paid in
full;

(iii)                               to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, the Note Interest Distributable Amount with respect to such
Distribution Date to the Class B Noteholders;

(iv)                              to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, the Second Priority Principal Distributable Amount with respect
to such Distribution Date first, to the Class A-1 Noteholders until the Class
A-1 Notes have been paid in full, second, to the Class A-2 Noteholders (pro rata, to the Class A-2a Noteholders and the Class A-2b
Noteholders), Class A-3 Noteholders and Class A-4 Noteholders, pro rata,
based on the outstanding principal amount of the related Classes of
Notes, until such Classes of Notes have been paid in full and, third, to the
Class B Noteholders until the Class B Notes have been paid in full;

 41
 

(v)                                 to the Note Distribution
Account, together with any amounts deposited therein pursuant to Section 7.06,
the Note Interest Distributable Amount with respect to such Distribution Date
to the Class C Noteholders;

(vi)                              to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, all amounts remaining after distribution of amounts in clauses
(i), (ii), (iii), (iv) and (v) above shall be allocated in the following order
of priority:

(1)                                  to the Class A
Notes, first, to the Class A-1 Noteholders, until the outstanding principal
balance of the Class A-1 Notes has been paid in full and, second, to the Class
A-2 Noteholders (pro rata, to the Class A-2a
Noteholders and the Class A-2b Noteholders), Class A-3 Noteholders and Class
A-4 Noteholders, pro rata,  based on the outstanding principal amount
of the related Classes of Notes, until the outstanding principal balance of
each such Class of the Notes has been paid in full;

(2)                                  to the Class B
Notes, until the outstanding principal balance of the Class B Notes has been
paid in full; and

(3)                                  to the Class C
Notes, until the outstanding principal balance of the Class C Notes has been
paid in full; and

(vii)                           to the Swap
Counterparty, any unpaid Subordinated Swap Termination Payment; and

(viii)                        to the Holder
of the Certificate.

(c)                                  If the Notes
have been declared immediately due and payable as provided in Section 5.02 of
the Indenture following the occurrence of an Event of Default under Section
5.01(i), (ii), (iv) or (v) of the Indenture, then, until such time as the Notes
have been paid in full, Available Monies shall be allocated and distributed in
the following order of priority after payment of amounts set forth in Section
7.05(a)(i), (ii), (iii) and (iv):

(i)                                     pro
rata (i) to the Note Distribution Account, together with any amounts
deposited therein pursuant to Section 7.06, the applicable Note Interest
Distributable Amount with respect to such Distribution Date to the Class A
Noteholders; provided, however, that if there
are insufficient funds on deposit in the Note Distribution Account to pay the
entire amount of the Note Interest Distributable Amount for the Class A Notes,
then the amount in the Note Distribution Account shall be applied to the Class
A-1 Notes, the Class A-2 Notes (pro rata, to the
Class A-2a Noteholders and the Class A-2b Noteholders), the Class A-3 Notes and
the Class A-4 Notes, pro rata, on
the basis of the Note Interest Distributable Amount for each such Class of
Notes and (ii) to the Swap Counterparty, any unpaid Senior Swap Termination
Payment;

(ii)                                  to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, all amounts remaining after distribution of amounts in clause (i)
above for distribution to the Class A Noteholders first, to the Class A-1
Noteholders until the Class A-1 Notes have been paid in full and, second, to
the Class A-2 Noteholders (pro rata, to
the Class A-2a Noteholders and the Class A-2b Noteholders), Class A-3
Noteholders and Class A-4

 42
 

Noteholders, pro rata, based on the outstanding
principal amount of the related Classes of Notes, until such Classes of Notes
have been paid in full;

(iii)                               to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, the Note Interest Distributable Amount with respect to such
Distribution Date for distribution to the Class B Noteholders;

(iv)                              to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, all amounts remaining after distribution of amounts in clauses
(i), (ii) and (iii) above, for distribution to the Class B Noteholders in
reduction of the outstanding principal balance of the Class B Notes until the
outstanding principal balance of the Class B Notes has been paid in full;

(v)                                 to the Note Distribution
Account, together with any amounts deposited therein pursuant to Section 7.06,
the Note Interest Distributable Amount with respect to such Distribution Date
for distribution to the Class C Noteholders;

(vi)                              to the Note
Distribution Account, together with any amounts deposited therein pursuant to
Section 7.06, all amounts remaining after distribution of amounts in clauses
(i) through (v) above, for distribution to the Class C Noteholders in reduction
of the outstanding principal balance of the Class C Notes until the outstanding
principal balance of the Class C Notes has been paid in full;

(vii)                           to the Swap
Counterparty, any unpaid Subordinated Swap Termination Payment; and

(viii)                        to the Holder
of the Certificate.

Section
7.06.                         Reserve Fund.

(a)                                  On or prior to
the Closing Date, the Indenture Trustee, on behalf of the Trust Depositor shall
deposit the Reserve Fund Initial Deposit into the Reserve Fund from the net
proceeds of the Securities.

(b)                                 The Indenture
Trustee shall determine no later than 10:00 a.m., Chicago, Illinois time, on
the Distribution Date (but after making, and taking into account, the
determination, demand and transfer of funds contemplated in Section 7.05 above)
whether there exists a Shortfall with respect to the upcoming Distribution
Date.  In the event that the Indenture
Trustee determines that there exists a Shortfall, the Indenture Trustee shall
no later than 12:00 noon, Chicago, Illinois time, on such Distribution Date
remit monies from the Reserve Fund in the following order of priority:  first, to the Note Distribution Account the
amount of such Shortfall relating to any unpaid Net Swap Payment, second, to
the Note Distribution Account, the amount of such Shortfall relating to the Note
Interest Distributable Amount and third, to the Note Distribution Account, the
amount of such Shortfall relating to the Note Principal Distributable Amount.

(c)                                  The Indenture
Trustee shall at the written direction of the Servicer invest the funds in the
Reserve Fund in Qualified Eligible Investments. 
Funds in the Reserve Fund shall be invested in investments that are
payable on demand or mature on or before the Business Day prior to each

 43
 

Distribution Date.  Once such
funds are invested, the Indenture Trustee shall not change the investment of
such funds prior to maturity.  Upon any
such investment, the Indenture Trustee shall, consistent with the definition of
Qualified Eligible Investment herein, make an appropriate notation of the
security interest in such Qualified Eligible Investment on the Indenture
Trustee’s records, by book entry or otherwise. 
All income and gain realized from any such investments as well as any
interest earned on Reserve Fund Deposits shall be deposited and retained in the
Reserve Fund (subject to Section 7.06(e)). 
Losses, if any, realized on amounts in the Reserve Fund invested
pursuant to this paragraph shall first be credited against undistributed
investment earnings on amounts in the Reserve Fund invested pursuant to this
paragraph, and shall thereafter be deemed to reduce the amount on deposit in
the Reserve Fund.  Neither the Trust
Depositor nor the Indenture Trustee shall be liable for the amount of any loss
incurred in respect of any investment, or lack of investment, of funds held in
the Reserve Fund.  All income or loss on
funds held in the Reserve Fund shall be taxable to the Trust Depositor.

(d)                                 Any Excess
Amounts will be applied to the Specified Reserve Fund Balance.

(e)                                  On each
Distribution Date on which the amount on deposit in the Reserve Fund (after
giving effect to all deposits thereto and withdrawals therefrom on such
Distribution Date) is greater than the Specified Reserve Fund Balance, the
Indenture Trustee shall release its lien on any remaining amounts to the Trust
Depositor.

Section
7.07.                         Yield Supplement Account.

(a)                                  On or prior to
the Closing Date, (i) the Trust Depositor shall establish with and in the name
of the Indenture Trustee on behalf of the Securityholders, an Eligible Account
designated “Harley-Davidson Customer Funding Corp. Yield Supplement
Account - Harley Davidson Motorcycle Trust 2007-3 — The Bank of New York Trust
Company, N.A., as Indenture Trustee” (such account being the “Yield Supplement Account”) and (ii) the
Indenture Trustee, on behalf of the Trust Depositor shall deposit the Yield
Supplement Initial Deposit into the Yield Supplement Account from the net
proceeds of the Securities.

(b)                                 On each
Determination Date, the Servicer shall determine the Yield Supplement
Withdrawal Amount.  The Indenture Trustee
shall no later than 12:00 noon, Chicago, Illinois time, on the related
Distribution Date remit the Yield Supplement Withdrawal Amount from the Yield
Supplement Account to the Note Distribution Account to be included in the Note
Interest Distributable Amount for such Distribution Date.

(c)                                  The Indenture
Trustee shall at the written direction of the Servicer invest the funds in the
Yield Supplement Account in Qualified Eligible Investments.  Funds in the Yield Supplement Account shall
be invested in investments that are payable on demand or mature on or before
the Business Day prior to each Distribution Date.  Once such funds are invested, the Indenture
Trustee shall not change the investment of such funds prior to maturity.  Upon any such investment, the Indenture
Trustee shall, consistent with the definition of Qualified Eligible Investment
herein, make an appropriate notation of the security interest in such Qualified
Eligible Investment on the Indenture Trustee’s records, by book entry or
otherwise.  All income and gain realized from
any such investments as well as any interest earned on amounts on deposit in
the Yield Supplement Account shall be deposited in to the Collection
Account.  Losses, if any, realized on
amounts in the Yield Supplement Account invested pursuant to this paragraph
shall first be credited against undistributed investment earnings on amounts in
the Yield Supplement Account invested pursuant to this paragraph, and shall
thereafter be deemed to reduce the amount on

 44
 

deposit in the Yield Supplement Account.  Neither the Trust Depositor nor the Indenture
Trustee shall be liable for the amount of any loss incurred in respect of any
investment, or lack of investment, of funds held in the Yield Supplement
Account.  All income or loss on funds
held in the Yield Supplement Account shall be taxable to the Trust Depositor.

Section
7.08.                         Purchase of Contracts for
Breach of Representations and Warranties.

Upon
a discovery by the Servicer, the Trust Depositor or the Trustees of a breach of
a representation or warranty of the Seller as set forth in Exhibit J
hereto that materially adversely affects the Trust’s interest in such Contract
(without regard to the benefits of the Reserve Fund), the party discovering the
breach shall give prompt written notice to the other parties; provided, that the Trustees shall have no duty or obligation
to inquire or to investigate the breach by the Seller of any of such
representations or warranties.  The
Seller, as provided in the Transfer and Sale Agreement and in accordance with
this Section 7.08, shall reacquire a Contract at its Purchase Price, not later
than two Business Days prior to the first Distribution Date after the last day
of the calendar month in which the Seller becomes aware or receives written
notice from the Trustees, the Servicer or the Trust Depositor of any breach of
a representation or warranty of the Seller set forth in Article III of the
Transfer and Sale Agreement that materially and adversely affects such Contract
or the Trust’s interest in such Contract 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 the Seller would otherwise be required to reacquire
under the Transfer and Sale Agreement, the Seller may, in lieu of reacquiring
such Contract, deposit in the Collection Account, not later than one Business
Day prior to the first Distribution Date after the last day of the calendar
month in which the Seller becomes aware of such inaccuracy, cash in an amount
sufficient to cure any deficiency or discrepancy; and provided
further that with respect to a breach of representation or warranty
relating to the Contracts in the aggregate and not to any particular Contract
the Seller may select Contracts (without adverse selection) to reacquire such
that had such Contracts not been included as part of the Trust Corpus 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
Section 5.09, shall be deemed to be a breach materially and adversely affecting
the Trust’s interest in the Contract or in the related Contracts.  Notwithstanding any other provision of this
Agreement, the obligation of the Seller under the Transfer and Sale Agreement
and described in this Section 7.08 shall not terminate or be deemed released by
any party hereto upon a Service Transfer pursuant to Article VIII.  The reacquisition obligation described in
this Section 7.08 is in no way to be satisfied with monies in the Reserve
Fund.  The sole remedy of the Issuer, the
Trustees, the Swap Counterparty and the Noteholders against the Seller with
respect to a breach of a representation or warranty of the Seller shall be to
require the Seller to reacquire the related Contract pursuant to this Section
7.08.

Section
7.09.                         Reassignment of Reacquired
Contracts.  Upon receipt by the Indenture Trustee for
deposit in the Collection Account of the Purchase Price as described in Section
7.08, Section 7.10 or Section 7.11, and upon receipt of a certificate of a
Servicing Officer in the form attached hereto as Exhibit G, the Indenture Trustee shall release its lien on
and the Trust shall assign to the Seller or the Servicer, as applicable, all of
the Trust’s right, title and interest in the reacquired or purchased Contract
without recourse, representation or warranty, except as to the absence of
liens, charges or encumbrances created by or arising as a result of actions of
the Trustees.

Section
7.10.                         Servicer’s Purchase Option.  On
written notice to the Owner Trustee and Indenture Trustee at least 20 days
prior to a Distribution Date, and provided that the Pool Balance is then

 45
 

less than 10% of the Pool Balance as of the Cutoff
Date, the Servicer may (but is not required to) purchase 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 the Indenture Trustee Fee to the date of
such purchase.  Such price shall be
deposited in the Collection Account not later than one (1) Business Day before
such Distribution Date, against the Owner Trustee’s and Indenture Trustee’s
release of the Contracts and the Contract Files to the Servicer.

Section
7.11.                         Purchase of Contracts for Breach
of Servicing Obligations.  Upon a discovery by the Servicer or the
Trustees of a breach of any of the covenants of the Servicer set forth in
Section 5.02, 5.06 or 5.09 that materially adversely affects the Trust’s
interest in a Contract (without regard to the benefits of the Reserve Fund),
the party discovering the breach shall give prompt written notice to the other
parties; provided, that the
Trustees shall have no duty or obligation to inquire or to investigate the
breach by the Servicer of any of such covenants.  The Servicer, in accordance with this Section
7.11, shall purchase such Contract at its Purchase Price, two Business Days
prior to the first Distribution Date after the last day of the calendar month
in which the Servicer becomes aware, or receives written notice from the
Trustees of any breach described in the preceding sentence which breach has not
been cured; provided, however,
that with respect to a breach of any of the covenants of the Servicer set forth
in Section 5.02, 5.06 or 5.09 relating to the Contracts in the aggregate and
not to any particular Contract the Servicer may select Contracts (without
adverse selection) to purchase such that had such Contracts not been included
as part of the Trust Corpus there would have been no breach of such
covenant.  Notwithstanding any other
provision of this Agreement, the obligation of the Servicer described in this
Section 7.11 shall not terminate or be deemed released by any party hereto upon
a Service Transfer pursuant to Article VIII. 
The purchase obligation described in this Section 7.11 is in no way to
be satisfied with monies in the Reserve Fund. 
Upon Servicer’s payment of the Purchase Price of the Contract, any Event
of Termination pursuant to Section 8.01(b) arising as a result of the Servicer’s
breach of any of the covenants set forth in Section 5.02, 5.06 or 5.09 with
respect to such Contract shall be deemed not to have occurred.

Section
7.12.                         Interest Rate Swap
Agreement.

(a)                                  The Issuer
shall enter into the Interest Rate Swap Agreement with the Swap Counterparty on
the Closing Date.  The Issuer shall
deposit Net Swap Receipts into the Note Distribution Account to be included as
Available Monies on the related Distribution Date.  Subject to the requirements of this
Section 7.12, the Issuer may from time to time enter into one or more
Replacement Interest Rate Swap Agreements in the event that the Interest Rate
Swap Agreement is terminated due to any “termination event” or “event of
default” (each as defined in the Interest Rate Swap Agreement) prior to its
scheduled expiration and in accordance with the terms of such Interest Rate
Swap Agreement.  Other than any
Replacement Interest Rate Swap Agreement entered into pursuant to this
Section 7.12(a), the Issuer may not enter into any additional interest
rate swap agreements.

(b)                                 In the event of
any early termination of the Interest Rate Swap Agreement, (i) upon
written direction and notification of such early termination, the Indenture
Trustee shall establish the Swap Termination Payment Account and (ii) any
Swap Termination Payments received from the Swap Counterparty will be remitted
to the Swap Termination Payment Account. 
To the extent not fully paid from Swap Replacement Proceeds, any Swap
Termination Payment owed by the Issuer to the Swap Counterparty under the
Interest Rate Swap Agreement shall be payable to the Swap Counterparty in 

 46
 

installments made on each following Distribution Date until paid in
full in accordance with the order of priority specified in Section 7.05.

(c)                                  Following the
early termination of the Interest Rate Swap Agreement due to an “event of
default” or “termination event” (each as defined in the Interest Rate Swap
Agreement) and in accordance with the terms of such Interest Rate Swap Agreement,
the Issuer shall promptly enter into a Replacement Interest Rate Swap Agreement
to the extent possible and practicable using funds available in the Swap
Termination Payment Account.

(d)                                 To the extent
that the funds available in the Swap Termination Payment Account exceed the
costs of entering into a Replacement Interest Rate Swap Agreement, the amounts
in the Swap Termination Payment Account (other than funds used to pay the costs
of entering into a Replacement Interest Rate Swap Agreement, if applicable)
shall be allocated in accordance with the order of priority specified in
Section 7.05 on the following Distribution Date.  In any other situation, amounts on deposit in
the Swap Termination Payment Account at any time shall be invested in Eligible
Investments and on each Distribution Date after the creation of a Swap
Termination Payment Account, the funds therein shall be used to cover any
shortfalls in the amounts payable under clauses (i) through (x) of
Section 7.05(a), under Section 7.05(b), or under
Section 7.05(c); provided, that
in no event will the amount withdrawn from the Swap Termination Payment Account
on such Distribution Date exceed the amount of Net Swap Receipts that would
have been required to be paid on such Distribution Date under the terminated
Interest Rate Swap Transaction had there been no termination of such
transaction.  Any amounts remaining in
the Swap Termination Payment Account after payment in full of the Class C Notes
shall be included in Available Monies and allocated in accordance with the
order of priority specified in Section 7.05 on the following Distribution
Date.

(e)                                  If the Swap
Counterparty is required to post collateral under the terms of the Interest
Rate Swap Agreement, upon written direction and notification of such
requirement the Indenture Trustee shall establish the Swap Collateral Account
(the “Swap Collateral Account”) over which the
Indenture Trustee shall have exclusive control and the sole right of
withdrawal, and in which no Person other than the Indenture Trustee, the Swap
Counterparty and the Noteholders shall have any legal or beneficial interest.
The Indenture Trustee shall deposit all “Eligible Collateral” (as defined in
the Interest Rate Swap Agreement) received from the Swap Counterparty into the
Swap Collateral Account.  Any and all
funds at any time on deposit in, or otherwise to the credit of, the Swap
Collateral Account shall be held in trust by the Indenture Trustee for the
benefit of the Swap Counterparty and the Noteholders.  The only permitted withdrawal from or
application of funds on deposit in, or otherwise to the credit of, the Swap
Collateral Account shall be (i) to pay any Net Swap Receipts or Swap
Termination Payments owed to the Issuer by the Swap Counterparty in accordance
with the terms of the Interest Rate Swap Agreement or (ii) to return
collateral to the Swap Counterparty when and as required by the Interest Rate
Swap Agreement.

(f)                                    The Issuer
hereby grants to the Indenture Trustee for the benefit of the Noteholders and
the Swap Counterparty a security interest in the Swap Collateral Account and
all funds in the Swap Collateral Account and the proceeds thereof to secure the
payment of interest on and principal of the Notes and the Swap Termination
Payments to the Swap Counterparty under the Interest Rate Swap Agreement, and
the Indenture Trustee shall have all of the rights of a secured party under the
UCC with respect thereto.  If for any
reason the Swap Collateral Account is no longer an Eligible Account, the
Indenture Trustee shall promptly cause the Swap Collateral Account to be moved
to another institution or otherwise changed so that the Swap Collateral Account
becomes an Eligible Account.

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ARTICLE EIGHT

EVENTS OF TERMINATION;
SERVICE TRANSFER

Section
8.01.                         Events of Termination.  “Event
of Termination” means the occurrence of any of the following:

(a)                                  Any failure by
the Servicer to make any payment or deposit required to be made under the Notes
hereunder or in the Transfer and Sale Agreement and the continuance of such
failure for a period of four Business Days after the date on which a Servicing
Officer discovers such failure or the Indenture Trustee provides written notice
of such failure to the Servicer;

(b)                                 Failure on the
Servicer’s part to observe or perform in any material respect any covenant or
agreement in this Agreement or in the Transfer and Sale Agreement (other than a
covenant or agreement, the breach of which is specifically addressed elsewhere
in this Section) which failure shall (i) materially and adversely affect
the rights of Noteholders and (ii) continue unremedied for a period of 60
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given (A) to the Servicer by the Owner Trustee
or the Indenture Trustee or (B) to the Servicer, and to the Indenture Trustee
by the Holders of Notes, evidencing not less than 25% of the Outstanding Amount
of the Notes;

(c)                                  An involuntary
case under any applicable bankruptcy, insolvency or other similar law shall
have been commenced in respect of the Servicer or Trust Depositor and shall not
have been dismissed within 90 days, or a court having jurisdiction in the
premises shall have entered a decree or order for relief in respect of either
the Servicer or Trust Depositor in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of either the Servicer or Trust Depositor, or for any
substantial liquidation or winding up of their respective affairs;

(d)                                 The Servicer or
Trust Depositor shall have commenced a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
shall have consented to the entry of an order for relief in an involuntary case
under any such law, or shall have consented to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian or
sequestrator (or other similar official) of the Servicer or Trust Depositor, as
the case may be, or for any substantial part of their respective property, or
shall have made any general assignment for the benefit of their respective
creditors, or shall have failed to, or admitted in writing its inability to,
pay its debts as they become due, or shall have taken any corporate action in
furtherance of the foregoing;

(e)                                  Any
representation, warranty or statement of the Servicer made in this Agreement or
any certificate, report or other writing delivered pursuant hereto shall prove
to be incorrect in any material respect as of the time when the same shall have
been made and the incorrectness of such representation, warranty or statement
has a material adverse effect on the Trust and, within 30 days after written
notice thereof shall have been given to the Servicer by the Indenture Trustee,
the circumstances or condition in respect of which such representation,
warranty or statement was incorrect shall not have been eliminated or otherwise
cured.

 48

Section
8.02.        Waiver of Event of
Termination.  The Required Noteholders may, by written
notice delivered to the parties hereto, waive any Event of Termination other
than an Event of Termination described in Section 8.01(a).

Section
8.03.        Service Transfer.  (a)  If
an Event of Termination has occurred and is continuing and has not been waived
pursuant to Section 8.02, (x) the Required Holders or (y) the Indenture Trustee
may, by written notice delivered to the parties hereto, terminate all (but not
less than all) of the Servicer’s management, administrative, servicing,
custodial and collection functions hereunder (such termination being herein
called a “Service Transfer”).

(b)           Upon receipt of the notice
required by Section 8.03(a) (or, if later, on a date designated therein), all
rights, benefits, fees, indemnities, authority and power of the Servicer under
this Agreement, whether with respect to the Contracts, the Contract Files or
otherwise, shall pass to and be vested in the Indenture Trustee (the “Successor Servicer”) pursuant to and under this Section
8.03; and, without limitation, the Successor Servicer is authorized and
empowered to execute and deliver on behalf of the Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do any and
all acts or things necessary or appropriate to effect the purposes of such
notice of termination.  The Servicer
agrees to cooperate with the Successor Servicer in effecting the termination of
the responsibilities and rights of the Servicer hereunder, including, without
limitation, the transfer to the Successor Servicer for administration by it of
all cash amounts which shall at the time be held by the Servicer for deposit,
or have been deposited by the Servicer, in the Collection Account, or for its
own account in connection with its services hereafter or thereafter received
with respect to the Contracts.  The
Servicer shall transfer to the Successor Servicer all records held by the
Servicer relating to the Contracts in such electronic form as the Successor
Servicer may reasonably request and (ii) any Contract Files in the Servicer’s
possession.  In addition, the Servicer
shall permit access to its premises (including all computer records and
programs) to the Successor Servicer or its designee, and shall pay the
reasonable transition expenses of the Successor Servicer.  Upon a Service Transfer, the Successor
Servicer shall also be entitled to receive the Monthly Servicing Fee for
performing the obligations of the Servicer.

Section
8.04.        Successor Servicer to Act;
Appointment of Successor Servicer.  On or after a Service Transfer
pursuant to Section 8.03, the Successor Servicer shall be the successor in all
respects to the Servicer in its capacity as servicer under this Agreement and
the transactions set forth or provided for herein and shall be subject to all
the responsibilities, duties and liabilities relating thereto placed on the
Servicer by the terms and provisions hereof, and the terminated Servicer shall
be relieved of such responsibilities, duties and liabilities arising after such
Service Transfer; provided, however,
that (i) the Successor Servicer will not assume any obligations of the Servicer
described in Section 8.08 and (ii) the Successor Servicer shall not be liable
for any acts or omissions of the Servicer occurring prior to such Service
Transfer or for any breach by the Servicer of any of its representations and
warranties contained herein or in any related document or agreement.
Notwithstanding the above, if the Successor Servicer is legally unable or
unwilling to act as Servicer, the Required Holders may appoint a successor
servicer (other than the original Servicer or an Affiliate of the original
Servicer) to act as Servicer.  As compensation
therefor, the successor servicer shall be entitled to receive reasonable
compensation equal to the Monthly Servicing Fee.  The Owner Trustee, Noteholders and the
Indenture Trustee and such successor shall take such action, consistent with
this Agreement, as shall be necessary to effectuate any such succession; provided, however, that the Indenture Trustee shall not be
required to make payment for compensation or any other payment in order to
effectuate such succession.  To the
extent the terminated Servicer has made Advances, it shall be entitled to
reimbursement of the same notwithstanding its termination hereunder, to the
same extent as if it had continued to service the Contracts hereunder.

 49
 

Section
8.05.        Notification to
Securityholders.  (a) 
Promptly following the occurrence of any Event of Termination, the
Servicer shall give written notice thereof to the Trustees, the Trust
Depositor, the Swap Counterparty and each Rating Agency at the addresses
described in Section 11.04 hereof and to the Noteholders at their respective
addresses appearing on the Note Register.

(b)           Within 10 days following any
termination or appointment of a Successor Servicer pursuant to this Article
VIII, the Indenture Trustee shall give written notice thereof to each Rating
Agency and the Trust Depositor at the addresses described in Section 11.04
hereof, and to the Noteholders at their addresses appearing on the Note
Register.

Section
8.06.        Effect of Transfer. 
(a)  After a Service Transfer, the
terminated Servicer shall have no further obligations with respect to the
management, administration, servicing, custody or collection of the Contracts
and the Successor Servicer appointed pursuant to Section 8.04 shall have all of
such obligations, except that the terminated Servicer will transmit or cause to
be transmitted directly to the Successor Servicer for its own account, promptly
on receipt and in the same form in which received, any amounts (properly
endorsed where required for the Successor Servicer to collect them) received as
payments upon or otherwise in connection with the Contracts.

(b)           A Service Transfer shall not
affect the rights and duties of the parties hereunder (including but not
limited to the indemnities of the Servicer) 
other than those relating to the management, administration, servicing,
custody or collection of the Contracts.

Section
8.07.        Database File.  The
Servicer will provide the Successor Servicer with a magnetic tape (in a format
reasonably acceptable to the Indenture Trustee and the Servicer) containing the
database file for each Contract (i) as of the Cutoff Date, (ii) thereafter, as
of the last day of the preceding Due Period on each Determination Date prior to
a Service Transfer and (iii) on and as of the Business Day before the actual
commencement of servicing functions by the Successor Servicer following the
occurrence of a Service Transfer.

Section
8.08.        Successor Servicer
Indemnification.  The Servicer shall defend, indemnify and hold
the Successor Servicer and any officers, directors, employees or agents of the
Successor Servicer harmless against any and all claims, losses, penalties,
fines, forfeitures, legal fees and related costs, judgments and any other
costs, fees, and expenses that the Successor Servicer may sustain in connection
with the claims asserted at any time by third parties against the Successor
Servicer which result from (i) any willful or grossly negligent act taken or
omission by the Servicer or (ii) a breach of any representations of the
Servicer in Section 3.02 hereof.  The indemnification
provided by this Section 8.08 shall survive the termination of this Agreement.

Section
8.09.        Responsibilities of the
Successor Servicer.  The Successor Servicer will not be
responsible for delays attributable to the Servicer’s failure to deliver
information, defects in the information supplied by the Servicer or other
circumstances beyond the control of the Successor Servicer.

The
Successor Servicer will make arrangements with the Servicer for the prompt and
safe transfer of, and the Servicer shall provide to the Successor Servicer, all
necessary servicing files and records, including (as deemed necessary by the
Successor Servicer at such time): (i) microfiche loan documentation, (ii)
servicing system tapes, (iii) Contract payment history, (iv) collections
history and (v) the trial balances, as of the close of business on the day
immediately preceding conversion to the Successor Servicer, reflecting all
applicable loan information.

 50
 

The
Successor Servicer shall have no responsibility and shall not be in default
hereunder nor incur any liability for any failure, error, malfunction or any
delay in carrying out any of its duties under this Agreement if any such
failure or delay results from the Successor Servicer acting in accordance with
information prepared or supplied by a Person other than the Successor Servicer
or the failure of any such Person to prepare or provide such information.  The Successor Servicer shall have no
responsibility, shall not be in default and shall incur no liability (i) for
any act or failure to act by any third party, including the Servicer, the Trust
Depositor or the Trustees or for any inaccuracy or omission in a notice or
communication received by the Successor Servicer from any third party or (ii)
which is due to or results from the invalidity, unenforceability of any
Contract with applicable law or the breach or the inaccuracy of any
representation or warranty made with respect to any Contract.

Section
8.10.        Limitation of Liability of
Servicer.  (a) 
Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Trust, the Owner
Trustee, the Indenture Trustee or the Noteholders, except as provided under
this Agreement, for any action taken or for refraining from the taking of any
action pursuant to this Agreement or for errors in judgment; provided, however, that this provision
shall not protect the Servicer or any such person against any liability that
would otherwise be imposed by reason of willful misfeasance, bad faith or
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement. 
The Servicer and any director, officer, employee or agent of the
Servicer may rely in good faith on the advice of counsel or on any document of
any kind, prima facie properly executed and submitted by any Person respecting
any matters arising under this Agreement.

(b)           Except as provided in this
Agreement, the Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that shall not be incidental to its duties
to service the Contracts in accordance with this Agreement, and that in its
opinion may cause it to incur any expense or liability; provided,
however, that the Servicer may undertake any reasonable action that
it may deem necessary or desirable in respect of the Transaction  Documents and the rights and duties of the
parties to the Transaction Documents and the interests of the Noteholders under
the Indenture.  In such event, the legal
expenses and costs of such action and any liability resulting therefrom shall
be expenses, costs and liabilities of the Servicer and the Servicer will not be
entitled to be reimbursed therefor.

Section
8.11.        Merger or Consolidation of
Servicer.  Any Person into which the Servicer may be
merged or consolidated, or any corporation, or other entity resulting from any
merger conversion or consolidation to which the Servicer shall be a party, or
any Person succeeding to all or substantially all of the business of the
Servicer (which Person assumes the obligations of the Servicer), shall be the
successor of the Servicer 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. 
The Servicer shall give prior written notice of any such merger or
consolidation to which it is a party to the Issuer, the Owner Trustee, the
Indenture Trustee and the Rating Agencies.

Section
8.12.        Servicer Not to Resign. 
Subject to the provisions of Section 8.03, Servicer shall not resign
from the obligations and duties hereby imposed on it as Servicer under this
Agreement except upon determination that the performance of its duties under
this Agreement shall no longer be permissible under applicable law.  Notice of any such determination permitting
the resignation of Servicer shall be communicated to the Owner Trustee and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable
time) and any such determination shall be evidenced by an Opinion of Counsel to
such effect delivered to the Owner Trustee and the Indenture Trustee
concurrently with or promptly after such notice. No such

 51
 

resignation shall become effective until the
Indenture Trustee shall have assumed the responsibilities and rights of the
predecessor Servicer in accordance with Section 8.04.

Section
8.13.        Appointment of Subservicer.  So
long as Harley-Davidson Credit Corp. acts as the Servicer, the Servicer may at
any time without notice or consent perform specific duties as servicer under
this Agreement through other subcontractors; provided,
however, that, in each case, no such delegation or subcontracting
shall relieve the Servicer of its responsibilities with respect to such duties
as to which the Servicer shall remain primarily responsible with respect
thereto.

ARTICLE NINE

REPORTS

Section
9.01.        Monthly Reports.  No
later than 10:00 a.m., Chicago, Illinois time, two Business Days prior to each
Distribution Date, the Servicer shall deliver to the Trustees and each Rating
Agency a  Monthly Report.

Section
9.02.        Officer’s Certificate.  Each
Monthly Report delivered pursuant to Section 9.01 shall be accompanied by a
certificate of a Servicing Officer substantially in the form of Exhibit C, certifying the accuracy of the
Monthly Report and that no Event of Termination or event that with notice or
lapse of time or both would become an Event of Termination has occurred, or if
such event has occurred and is continuing, specifying the event and its status.

Section
9.03.        Other Data.  In
addition, the Trust Depositor and the Servicer shall, upon the request of the
Trustees, Moody’s or Standard & Poor’s, furnish the Trustees, Moody’s or
Standard & Poor’s, as the case may be, such underlying data as may be
reasonably requested.

Section 9.04.        Report on Assessment of
Compliance with Servicing Criteria and Attestation; Annual Officer’s
Certificate.

(a)  The Servicer will:

(i)            deliver to the
Indenture Trustee and each Rating Agency within 90 days after the end of each
calendar year a report on its assessment of compliance with the servicing
criteria applicable to it during the preceding calendar year, including
disclosure of any material instance of non-compliance identified by the
Servicer, as required by Rule 13a-18 and 15d-18 of the Exchange Act and Item
1122 of Regulation AB under the Securities Act;

(ii)           cause a firm of
registered public accountants that is qualified and independent within the
meaning of Rule 2-01 of Regulation S-X under the Securities Act to deliver to
the Indenture Trustee and each Rating Agency within 90 days after the end of
each calendar year an attestation report that satisfies the requirements of
Rule 13a-18 or Rule 15d-18 under the Exchange Act and Item 1122 of Regulation
AB, as applicable, on the Servicer’s assessment of compliance with servicing
criteria with respect to the prior calendar year; and

(iii)          deliver to the
Indenture Trustee and each Rating Agency within 90 days after the end of each
calendar year, an Officer’s Certificate to the effect that (i) a review of the
Servicer’s

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activities during the
immediately preceding calendar year (or, in the case of the first certificate,
since the Closing Date) and of its performance under this Agreement has been
made under the supervision of the officer signing such certificate and (ii) to
the best of such officer’s knowledge, based on such review, the Servicer has
fulfilled in all material respects all of its obligations under this Agreement
throughout such calendar year (or applicable portion of such calendar year),
or, if there has been a failure to fulfill any such obligation in any material
respect, specifying each such failure known to such officer and the nature and
status of such failure.

(b)
          If the Trust is
not required to file periodic reports under the Exchange Act, or otherwise
required by law to file the reports described in clause (a) above, such reports
may be delivered on or before April 30 of each calendar year.  A copy of such reports may be obtained by any
Noteholder by a request in writing to the Indenture Trustee.

Section
9.05.        Monthly Reports to
Noteholders and the Swap Counterparty.  (a)  On or before two Business Days prior to each
Distribution Date, the Servicer shall prepare and, concurrently with each
distribution to Noteholders pursuant to Article VII, deliver to the Indenture
Trustee, in its capacity as Note Registrar and Paying Agent, shall cause to be
delivered and mailed to each Noteholder at the addresses appearing on the Note
Register and the Swap Counterparty a statement as of the related Distribution
Date substantially in the form of Exhibit I
hereto (the “Monthly Report”)
setting forth at least the following information:

(i)           the amount of
Noteholder’s principal distribution;

(ii)          the amount of Noteholder’s
interest distribution;

(iii)         the amount of fees
payable out of the Trust, separately identifying the Monthly Servicing Fee and
the Indenture Trustee Fee;

(iv)         the amount of any Note
Interest Carryover Shortfall and Note Principal Carryover Shortfall on such
Distribution Date and the change in such amounts from those with respect to the
immediately preceding Distribution Date;

(v)          the Note Pool Factor for
each Class of Notes, in each case of such Distribution Date;

(vi)         the amount of the
distributions described in (i) or (ii) above payable pursuant to a claim on the
Reserve Fund or from any other source not constituting Available Monies and the
amount remaining in the Reserve Fund after giving effect to all deposits and
withdrawals from the Reserve Fund on such date;

(vii)        the Yield Supplement
Withdrawal Amount and the amount remaining in the Yield Supplement Account
after giving effect to all withdrawals from the Yield Supplement Account on
such date;

(viii)       the amount of any Net Swap
Payments and Net Swap Receipts;

(ix)         the amount of any unpaid
Senior Swap Termination Payment and Subordinated Swap Termination Payment;

 53
 

(x)          LIBOR for such
Distribution Date and the interest rate on each Class of Floating Rate Notes;

(xi)         the remaining Principal
Balance after giving effect to the distribution of principal to each class of
Notes to be made on such Distribution Date;

(xii)        the number and aggregate
principal balance of Contracts delinquent 30-59 days, 60-89 days
and 90 or more days, computed as of the end of the related Due Period;

(xiii)       the number and aggregate
principal balance of Contracts that became Liquidated Contracts during the
immediately preceding Due Period, the amount of liquidation proceeds for such
Due Period, the amount of liquidation expenses being deducted from liquidation
proceeds for such Due Period, the Net Liquidation Proceeds and the Net
Liquidation Losses for such Due Period;

(xiv)       the Loss Ratio, Average
Loss Ratio, Cumulative Loss Ratio, the Delinquency Ratio and the Average
Delinquency Ratio as of such Distribution Date;

(xv)        the number of Contracts
and the aggregate Principal Balance of such Contracts, as of the first day of
the Due Period relating to such Distribution Date (after giving effect to payments
received during such Due Period);

(xvi)       the aggregate Principal
Balance and number of Contracts that were reacquired by the Seller pursuant to
the Agreement with respect to the related Due Period, identifying the Purchase
Price for such Contracts;

(xvii)      the aggregate Principal
Balance and number of Contracts that were purchased by the Servicer pursuant to
the Agreement with respect to the related Due Period, identifying the Purchase
Price for such Contracts;

(xviii)     the amount otherwise
distributable on the Class B Notes that has instead been distributed to one or
more senior Classes of Notes on such Distribution Date;

(xix)        the amount otherwise
distributable on the Class C Notes that has instead been distributed to one or
more senior Classes of Notes on such Distribution Date;

(xx)         the amount of Advances
made by the Servicer in respect of the related Contracts and the related Due
Period and the amount of unreimbursed Advances in respect of the related
Contracts determined by the Servicer to be Defaulted Contracts; and

(xxi)        such other customary
factual information as is available to the Servicer as the Servicer deems
necessary and can reasonably obtain from its existing data base to enable the
Noteholders and the Certificateholder to prepare their tax returns.

(b)           Within the prescribed period
of time for tax reporting purposes after the end of each calendar year, the
Servicer shall prepare and the Note Registrar shall mail to each Noteholder of
record at any time during such year a report as to the aggregate amounts
reported pursuant to subsections (i), (ii), (iii) and (iv) of this Section,
attributable to such Noteholder.

 54
 

(c)           The Indenture Trustee shall send the Monthly Report to (i) the
initial Clearing Agency under the Note Depository Agreement or any qualified
successor appointed pursuant to Section 2.11 of the Indenture and (ii) each
Securityholder or party to this Agreement.

Section
9.06.        Regulation AB.

The
parties hereto acknowledge that interpretations of the requirements of
Regulation AB may change over time, whether due to interpretive guidance
provided by the Securities and Exchange Commission or its staff, consensus
among participants in the asset backed securities markets, advice of counsel,
or otherwise, and agree to comply with reasonable requests (which are practical
from a timing perspective) made by the Trust Depositor or the Servicer in good
faith for delivery of information under these provisions on the basis of
evolving interpretations of Regulation AB. 
In connection therewith, the Owner Trustee and the Indenture Trustee
shall reasonably cooperate with the Servicer in connection with the
satisfaction of the Trust Depositor’s and the Trust’s reporting requirements
under the Exchange Act, subject to reimbursement of expenses in accordance with
the Transaction Documents.

Section
9.07.        Information to Be Provided by the
Indenture Trustee.

(a)           As soon as available but no
later than March 15 of each calendar year for so long as the Issuer is
required to report under the Exchange Act, commencing in 2008, the Indenture
Trustee shall:

(i)            deliver
to the Servicer a report regarding the Indenture Trustee’s assessment of
compliance with the Servicing Criteria during the immediately preceding
calendar year, as required under paragraph (b) of Rule 13a-18, Rule 15d-18
of the Exchange Act and Item 1122 of Regulation AB. Such report shall be
signed by an authorized officer of the Indenture Trustee, and shall address
each of the Servicing Criteria specified in Exhibit
E or such criteria as mutually agreed upon by the Servicer and the
Indenture Trustee;

(ii)           deliver
to the Servicer a report of a registered public accounting firm that attests
to, and reports on, the assessment of compliance made by the Indenture Trustee
and delivered pursuant to the preceding paragraph. Such attestation shall be in
accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the
Securities Act and the Exchange Act; and

(iii)          deliver
to the Servicer and any other Person that will be responsible for signing the
certification required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act
(pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) (a “Sarbanes Certification”) on behalf of the
Issuer or the Servicer a certification substantially in the form attached
hereto as Exhibit F in such form as mutually
agreed upon by the Servicer and the Indenture Trustee.

The Indenture Trustee acknowledges that the parties
identified in clause (iii) above may rely on the certification provided by
the Indenture Trustee pursuant to such clause in signing a Sarbanes
Certification and filing such with the Securities and Exchange Commission.

Section
9.08.        Exchange Act Reporting.

(a)           Form 10-D Filings.  So long as the Issuer is
required to report under the Exchange Act, no later than each Distribution
Date, each of the Indenture Trustee and the Owner Trustee shall notify the
Servicer of any Form 10-D Disclosure Item with respect to such Person

 55
 

(to the extent there is any Form 10-D Disclosure Item), together with a
description of any such Form 10-D Disclosure Item in form and substance
reasonably acceptable to the Servicer.

(b)           Form
8-K Filings.  So long as the Issuer is required to report
under the Exchange Act, each of the Indenture Trustee and the Owner Trustee
shall promptly notify the Servicer, but in no event later than one (1) Business
Day after its occurrence, of any Reportable Event of which such Person (or in
the case of the Owner Trustee and the Indenture Trustee, a Responsible Officer
of such Person) has actual knowledge. 
Each Person shall have actual knowledge of any such event only to the
extent that it relates to such Person or any action or failure to act by such
Person.

(c)           Form 10-K Filings.  So long as the Issuer is
required to report under the Exchange Act, no later than March 15 of each year,
commencing in 2008, the Indenture Trustee and the Owner Trustee shall notify
the Servicer of any Form 10-K Disclosure Item known to any Responsible Officer
thereof or relating to the Indenture Trustee or Owner Trustee, as applicable,
together with a description of any such Form 10-K Disclosure Item in form and
substance reasonably acceptable to the Servicer.

ARTICLE TEN

TERMINATION

Section
10.01.      Sale of Trust Assets.

(a)           [Intentionally Omitted].

(b)           As described in Article Nine of the Trust Agreement,
notice of any termination of the Trust shall be given by the Servicer to the
Owner Trustee and the Indenture Trustee as soon as practicable after the
Servicer has received notice thereof.

(c)           Following the satisfaction and discharge of the
Indenture and the payment in full of the principal of and interest on the
Notes, the Certificateholder will succeed to the rights of the Noteholders
hereunder and the Owner Trustee will succeed to the rights of, and assume the
obligations of, the Indenture Trustee pursuant to this Agreement.

ARTICLE ELEVEN

MISCELLANEOUS

Section
11.01.      Amendment.

(a)           This Agreement may be amended by the Trust
Depositor, the Servicer, the Indenture Trustee and the Owner Trustee on behalf
of the Issuer, collectively, without the consent of any Securityholders or the
Swap Counterparty, (i) to cure any ambiguity, to correct or supplement any
provisions in this Agreement which are inconsistent with the provisions herein
or in the Prospectus, or to add any other provisions with respect to matters or
questions arising under this Agreement that shall not

 56
 

be inconsistent with the provisions of this Agreement or the
Prospectus, (ii) to add or provide any credit enhancement for any Class of
Notes and (iii) to change any provision applicable for determining the
Specified Reserve Fund Balance or the manner in which the Reserve Fund is
funded; provided, however that any such action
shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Securityholder or the Swap Counterparty
and provided, further, that in connection with any amendment pursuant to clause
(iii) above, the Servicer shall deliver to the Owner Trustee and the Indenture
Trustee a letter from Standard & Poor’s (so long as Standard & Poor’s
is a Rating Agency) and Moody’s (so long as Moody’s is a Rating Agency) to the
effect that such amendment will not cause its then-current rating on any Class
of Notes to be qualified, reduced or withdrawn.

(b)           This Agreement may also be amended from time to time
by the Trust Depositor, the Servicer, the Indenture Trustee and the Owner
Trustee on behalf of the Issuer, with the consent of the Required Holders and,
to the extent the Swap Counterparty is materially and adversely affected thereby,
the Swap Counterparty (which consent shall not be unreasonably withheld or
delayed), for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Noteholders, the Swap Counterparty or the
Certificateholder; provided, however,
that no such amendment shall increase or reduce in any manner the amount of, or
accelerate or delay the timing of (i)(a) collections of payments on the
Contracts or distributions that shall be required to be made on any Note or any
Interest Rate, (b) except as otherwise provided in Section 11.01(a), the
Specified Reserve Fund Balance or the manner in which the Reserve Fund is
funded or (ii) reduce the aforesaid percentage of the Outstanding Amount of the
Notes, the Holders of which are required to consent to any such amendment,
without the consent of the Holders of all Notes of the relevant Class then
outstanding and the Certificate.

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

(d)           Promptly after the execution of any such amendment
or consent, the Owner Trustee and the Indenture Trustee, as the case may be,
shall furnish written notification of the substance of such amendment or
consent to each Noteholder and, if applicable, the Swap Counterparty.  It shall not be necessary for the consent of
Noteholders or the Swap Counterparty pursuant to Section 11.01(b) to approve
the particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof.  The manner of obtaining such consents and of
evidencing the authorization by Noteholders and, if applicable, the Swap
Counterparty of the execution thereof shall be subject to such reasonable
requirements as the Owner Trustee or the Indenture Trustee may prescribe.

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

(f)            Notwithstanding anything to
the contrary in this Section 11.01, the Trust Depositor or the Servicer, acting
on behalf of the Trust Depositor, may request each Rating Agency to approve a
formula for determining the Specified Reserve Fund Balance that is different
from the formula or result determined from the current definition thereof
contained herein so as to result in a decrease in the amount

 57
 

of the Specified Reserve Fund Balance or the manner by which such
Reserve Fund is funded.  If each Rating
Agency delivers to the Indenture Trustee and Owner Trustee a written notice or
letter stating that such action will not result in a reduction or withdrawal of
the rating of any outstanding Class with respect to which a Rating Agency has
previously issued a rating as a result or such action, then the Specified
Reserve Fund Balance will be theretofore determined in accordance with such
changed formula or manner of funding, and an amendment to this Agreement
effecting such change may be executed without the consent of any Securityholder
or the Swap Counterparty.

Section
11.02.      Protection of Title to
Trust.

(a)           The Servicer shall file such
financing statements and cause to be filed such continuation statements, all in
such manner and in such places as may be required by law fully to preserve,
maintain and protect the interest of the Issuer, the Securityholders, the Swap
Counterparty and the Indenture Trustee in the Contracts and in the proceeds
thereof.  The Servicer shall deliver (or
cause to be delivered) to the Owner Trustee and the Indenture Trustee
file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing.  The Trust Depositor authorizes the Trust to
file financing statements describing the Trust Corpus as collateral.

(b)           Neither the Seller, the
Trust Depositor nor the Servicer shall change its name, identity or corporate
structure in any manner that would, could or might make any financing statement
or continuation statement filed in accordance with Section 4.02 seriously
misleading within the meaning of § 9-507 of the UCC, unless it shall have given
the Issuer, the Owner Trustee and the Indenture Trustee at least 30 days’ prior
written notice thereof and shall have promptly filed appropriate amendments to
all previously filed financing statements or continuation statements.

(c)           The Seller and the Trust
Depositor shall give the Issuer, the Owner Trustee and the Indenture Trustee at
least 30 days’ prior written notice of any change in its state of
incorporation.  The Servicer shall at all
times maintain each office from which it shall service Contracts, and its
principal executive office, within the United States.

(d)           The Servicer shall maintain
or cause to be maintained accounts and records as to each Contract accurately
and in sufficient detail to permit (i) the reader thereof to know at any time
the status of such Contract, including payments and recoveries made and
payments owing (and the nature of each) and (ii) reconciliation between
payments or recoveries on (or with respect to) each Contract and the amounts
from time to time deposited in or credited to the Collection Account in respect
of each Contract.

(e)           The Servicer shall maintain
or cause to be maintained its computer systems so that, from and after the time
of transfer under this Agreement of the Contracts, the Servicer’s master
computer records (including any backup archives) that shall refer to a Contract
indicate clearly the interest of the Issuer and the Indenture Trustee in such
Contract and that such Contract is owned by the Issuer and has been pledged to
the Indenture Trustee.  Indication of the
Issuer’s ownership of and the Indenture Trustee’s interest in a Contract shall
be deleted from or modified on the Servicer’s computer systems when, and only
when, the related Contract shall have been paid in full or reacquired or shall
have become a Liquidated Contract.

(f)            If at any time the Trust Depositor or the Servicer
shall propose to sell, grant a security interest in, or otherwise transfer any
interest in motorcycle conditional sales contracts or promissory note and
security agreements to any prospective purchaser, lender or other transferee,
the Servicer shall give or

 58
 

cause to be given to such prospective purchaser, lender or other
transferee computer tapes, records or print-outs (including any restored from
back-up archives) that, if they shall refer in any manner whatsoever to any
Contract, shall indicate clearly that such Contract has been transferred and is
owned by the Issuer and has been pledged to the Indenture Trustee.

(g)           The Servicer shall permit the Owner Trustee and its
agents, at any time during normal business hours, to inspect, audit and make
copies of and abstracts from the Servicer’s records regarding any Contract.

(h)           Upon request, the Servicer shall furnish to the
Owner Trustee and the Indenture Trustee, within five Business Days, a list of
all Contracts then held as part of the Trust Estate, together with a
reconciliation of such list to the List of Contracts and to each of the Monthly
Reports furnished before such request indicating removal of Contracts from the
Trust.

(i)            The Servicer shall deliver to the Owner Trustee, the
Indenture Trustee and each Rating Agency promptly after the execution and
delivery of this Agreement and of each amendment hereto, an Opinion of Counsel
either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements have been executed and filed that are
necessary fully to preserve and protect the interest of the Owner Trustee and
the Indenture Trustee and reciting the details of each filings or referring to
prior Opinions of Counsel in which such details are given, or (B) stating that,
in the opinion of such counsel, no such action shall be necessary to preserve
and protect such interest.

Section 11.03.      Governing Law.  This
Agreement 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, except that the
duties of the Owner Trustee shall be governed by the laws of the State of
Delaware.

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
or electronic mail transmission with a confirmation of receipt, in all cases
addressed to the recipient as follows:

	
   

  	
  (i)

  	
   

  	
  If to the Servicer or Seller:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Harley-Davidson
  Credit Corp.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  222 West Adams Street, Suite 2000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Chicago, Illinois 60606

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention: Lawrence G. Hund

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telecopier No.:  (312) 368-4372

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
   

  	
  If to the Trust Depositor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Harley-Davidson
  Customer Funding Corp.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3850 Arrowhead
  Drive

  	
   

  	
   

  

 

 59
 

 

	
  

  	
   

  	
   

  	
  Carson City,
  Nevada 89706

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention: Lawrence G. Hund

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telecopier
  No.:  (775) 886-3490

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Harley-Davidson
  Credit Corp.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  222 West Adams Street, Suite 2000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Chicago, Illinois 60606

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention: Lawrence G. Hund

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telecopier No.:  (312) 368-4372

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
   

  	
  If to the Indenture Trustee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  The Bank of New
  York Trust Company, N.A.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2 North LaSalle
  Street

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Suite 1020

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Chicago,
  Illinois 60602

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:
  Corporate Trust Administration

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telecopier No.:  (312)
  827-8562

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
   

  	
  If to the Owner Trustee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Wilmington Trust
  Company

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Rodney Square
  North

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  1100 North
  Market Street

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Wilmington,
  Delaware 19890-0001

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:
  Corporate Trust Administration

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telecopier No.:  (302)
  636-4140

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
   

  	
  If to Moody’s:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Moody’s
  Investors Service, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  99 Church Street

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  New York, New
  York 10007

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention: ABS
  Monitoring Department

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telecopier No.: 
  (212) 298-7139

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Email:
  servicerreports@moodys.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
   

  	
  If to Standard & Poor’s:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Standard &
  Poor’s Ratings Services, a

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  division of The McGraw Hill Companies, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  55 Water Street

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  New York, New
  York 10004

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telecopier No.: 
  (212) 438-2657

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 60
 

 

	
  

  	
  (vii)

  	
   

  	
  If to the Underwriters:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  At the address
  set forth in the Underwriting Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (viii)

  	
   

  	
  If to the Swap Counterparty:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  At the address
  set forth in the Interest Rate Swap Agreement

  	
   

  	
   

  

 

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

Section
11.05.      Severability of Provisions.  If
one or more of the covenants, agreements, provisions or terms of this Agreement
shall be for any reason whatsoever held invalid, then such covenants,
agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no
way affect the validity or enforceability of the other provisions of this
Agreement or of the Notes or the Certificate or the rights of the Holders
thereof.

Section
11.06.      Assignment. 
Notwithstanding anything to the contrary contained herein, as provided
in Sections 6.03 and 8.03, this Agreement may not be assigned by the Trust
Depositor or the Servicer without the prior written consent of Securityholders
aggregating not less than 66-2/3% of each Class.

Section
11.07.      Third Party Beneficiaries. 
Except as otherwise specifically provided herein, the parties hereto
hereby manifest their intent that no third party shall be deemed a third party
beneficiary of this Agreement, and specifically that the Obligors are not third
party beneficiaries of this Agreement.

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

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

Section
11.10.      No Bankruptcy Petition;
Disclaimer and Subordination.  (a) Each of the Seller, the Indenture
Trustee, the Servicer, the Owner Trustee and each Holder (by acceptance of the
applicable Securities) 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, it will not institute against the Trust Depositor,
or the Trust, or join any other Person in instituting 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 States or any state of the United States.  This Section 11.10 will survive the
termination of this Agreement.

(b)           The Trust acknowledges and
agrees that the Certificate represents a beneficial interest in the Trust and
Trust Corpus only and the Securities do not represent an interest in any assets
(other than the Trust Corpus) 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, to the extent
that the Trust Depositor enters into other securitization transactions, the
Trust acknowledges and agrees that it shall have no right, title or interest in

 61
 

or to any assets (or interests therein) other than the Trust Assets
conveyed or purported to be conveyed (whether by way of a sale, capital
contribution or by the granting of a Lien) by the Trust Depositor to any Person
other than the Trust (the “Other Assets”).

To
the extent that notwithstanding the agreements contained in this Section, the
Trust or any Securityholder, either (i) asserts an interest in or claim to, or
benefit from any 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 interest, claim or benefit in or from any Other Assets, whether by
operation of law, legal process, pursuant to applicable provisions of
Insolvency Laws or otherwise (including without limitation pursuant to Section
1111(b) of the federal Bankruptcy Code, as amended) and whether deemed asserted
against or through the Trust Depositor or any other Person owned by the Trust
Depositor, then the Trust and each Securityholder by accepting a Note or
Certificate further acknowledges and agrees that any such interest, claim or
benefit in or from the 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 documents relating to the
securitization of the 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 under applicable law, including
Insolvency Laws, and whether asserted against the Trust Depositor or any other
Person owned by the Trust 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 Securityholder is
deemed to have acknowledged and agreed that no adequate remedy at law exists
for a breach of this Section 11.10 and that the terms and provisions of this
Section 11.10 may be enforced by an action for specific performance.

(c)           The provisions of this
Section 11.10 shall be for the third party benefit of those entitled to rely thereon
and shall survive the termination of this Agreement.

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

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

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

[signature page follows]

 62

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

	
  

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-3

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Wilmington Trust Company, not in its

  individual capacity but solely as Owner Trustee

  on behalf of the Trust

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
     /s/
  James P. Lawler

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name:    James P. Lawler

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
     Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HARLEY-DAVIDSON CUSTOMER FUNDING CORP., as 

  Trust Depositor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
     /s/
  Lawrence G. Hund

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name:   Lawrence G. Hund

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President, Chief Financial Officer &
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HARLEY-DAVIDSON CREDIT CORP., as Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
     /s/
  Lawrence G. Hund

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name:   Lawrence G. Hund

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President, Chief Financial Officer &
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
  not in its individual capacity but solely as
  Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
     /s/
  Corine D. Twin

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name:   Corine D. Twin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:   Assistant Vice President

  	
   

  
									

 

Signature Page to
Sale and Servicing Agreement

Exhibit A

[Form of Assignment]

In
accordance with the Sale and Servicing Agreement (the “Sale and
Servicing Agreement”) dated as of August 15, 2007 made by and
between the undersigned, as Trust Depositor 
(“Trust Depositor”), Harley-Davidson
Credit Corp., as Servicer (“HDCC”), The Bank of New York Trust Company, N.A.,
as Indenture Trustee and Harley-Davidson Motorcycle Trust 2007-3 (the “Trust”), as assignee thereunder, the undersigned does hereby
sell, transfer, convey and assign, set over and otherwise convey to the Trust
(i) all the right, title and interest of the Trust Depositor in and to the
Contracts listed on the List of Contracts delivered on the Closing Date
(including, without limitation, all security interests and all rights to
receive payments which are collected pursuant thereto after the Cutoff Date,
including any liquidation proceeds therefrom, but excluding any rights to
receive payments which were collected pursuant thereto on or prior to the
Cutoff Date), (ii) all rights of the Trust Depositor under any physical damage
or other individual insurance policy (and rights under a “forced
placed” policy, if any), any debt insurance policy or any debt
cancellation agreement relating to any such Contract, an Obligor or a
Motorcycle securing such Contract, (iii) all security interests in each such
Motorcycle, (iv) all documents contained in the related Contract Files, (v) all
rights (but not the obligations) of the Trust Depositor under any related
motorcycle dealer agreements between dealers (i.e., the originators of certain
Contracts) and HDCC, (vi) all rights of the Trust Depositor in the Lockbox, the
Lockbox Account and related Lockbox Agreement to the extent they relate to such
Contracts, (vii) all rights (but not the obligations) of the Trust Depositor
under the Transfer and Sale Agreement, including but not limited to the Trust
Depositor’s rights under Article V thereof, (viii) the remittances, deposits
and payments made into the Trust Accounts from time to time and amounts in the
Trust Accounts from time to time (and any investments of such amounts), (ix)
all rights of the Trust Depositor to certain rebates of premiums and other
amounts relating to insurance policies, debt cancellation agreements, extended
service contracts or other repair agreements and other items financed under
such Contracts, and (x) all proceeds and products of the foregoing.

This
Assignment is made pursuant to and in reliance upon the representation and
warranties on the part of the undersigned contained in Article Three of the
Sale and Servicing 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.

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

	
  

  	
   

  	
  HARLEY-DAVIDSON CUSTOMER FUNDING

  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

 A-1

Exhibit
B

[Form of Closing Certificate of Trust Depositor]

Harley-Davidson Customer Funding Corp.

Officer’s Certificate

The undersigned certifies
that he is [                 ]
of Harley-Davidson Customer Funding Corp., a Nevada corporation (the “Trust Depositor”), and that as such is duly authorized to
execute and deliver this certificate on behalf of the Trust Depositor in
connection with the Sale and Servicing Agreement (the “Agreement”)
dated as of August 15, 2007 (the “Effective Date”)
by and among the Trust Depositor, The Bank of New York Trust Company, N.A. (the
“Indenture Trustee”), as Indenture
Trustee,  Harley-Davidson Credit Corp. (“Harley-Davidson Credit”), as Servicer, and Harley-Davidson
Motorcycle Trust 2007-3 (“Issuer”) (all
capitalized terms used herein without definition have the respective meanings
set forth in the Agreement), and further certifies as follows:

(1)           Attached
hereto as Exhibit I is a true and correct copy of
the Articles of Incorporation of the Trust Depositor, together with all
amendments thereto as in effect on the date hereof.

(2)           There
has been no other amendment or other document filed affecting the Articles of
Incorporation of the Trust Depositor since May 12, 2000, and no such amendment
has been authorized by the Board of Directors or shareholders of the Trust
Depositor.

(3)           Attached
hereto as Exhibit II is a Certificate of the
Secretary of State of the State of Nevada dated as of a recent date stating
that the Trust Depositor is duly incorporated under the laws of the State of
Nevada and is in good standing.

(4)           Attached
hereto as Exhibit III is a true and correct copy
of the By-laws of the Trust Depositor, which are in full force and effect
on the date hereof.

(5)           Attached
hereto as Exhibit IV is a true and correct copy of
resolutions adopted pursuant to the unanimous written consent of the Board of
Directors of the Trust Depositor relating to the execution, delivery and
performance of the Agreement, the Transfer and Sale Agreement, the Trust
Agreement; the Administration Agreement and the Underwriting Agreement
(collectively, the “Program Agreements”).  Said resolutions have not been amended,
modified, annulled or revoked, and are on the date hereof in full force and
effect and are the only resolutions relating to these matters which have been
adopted by the Board of Directors.

(6)           No
event with respect to the Trust Depositor has occurred and is continuing which
would constitute an Event of Termination or an event that, with notice or the
passage of time or both, would become an Event of Termination under the
Agreement.  To the best of my knowledge
after reasonable investigation, there has been no material adverse change in
the condition, financial or otherwise, or the earnings, business affairs or
business prospects of the Trust Depositor, whether or not arising in the
ordinary course of business since the respective 

 B-1
 

dates as of which information is given in the Preliminary Prospectus
(as defined in the Underwriting Agreement) or the Prospectus and except as set
forth therein.

(7)           All
federal, state and local taxes of the Trust Depositor due and owing as of the
date hereof have been paid.

(8)           All
representations and warranties of the Trust Depositor contained in the Program
Agreements or any other related documents, or in any document, certificate or
financial or other statement delivered in connection therewith are true and
correct as of the date hereof.

(9)           There
is no action, investigation or proceeding pending or, to our knowledge,
threatened against the Trust Depositor before any court, administrative agency
or other tribunal (a) asserting the invalidity of the Program Agreements; (b)
seeking to prevent the consummation of any of the transactions contemplated by
the Program Agreements; or (c) which is likely materially and adversely to
affect the Trust Depositor’s performance of its obligations under, or the
validity or enforceability of, the Program Agreements.

(10)         No
consent, approval, authorization or order of, and no notice to or filing with,
any governmental agency or body or state or federal court is required to be
obtained by the Trust Depositor for the Trust Depositor’s consummation of the
transactions contemplated by the Program Agreements, except such as have been
obtained or made and such as may be required under the blue sky laws of any
jurisdiction in connection with the issuance and sale of the Certificate.

(11)         The
Trust Depositor is not a party to any agreements or instruments evidencing or
governing indebtedness for money borrowed or by which the Trust Depositor or
its property is bound (other than the Program Agreements).  Neither Harley-Davidson Credit’s transfer and
assignment of the Contract Assets to the Trust Depositor, the Trust Depositor’s
concurrent transfer and assignment of the Trust Corpus to the Trust, nor the
concurrent pledge of the Collateral by the Trust to the Indenture Trustee nor
the issuance and sale of the Certificate and the Notes, nor the execution and
delivery of the Program Agreements, nor the consummation of any other of the
transactions contemplated therein, will violate or conflict with any agreement
or instrument to which the Trust Depositor is a party or by which it is
otherwise bound.

(12)         In
connection with the transfer of Contracts and related collateral contemplated
in the Agreement, (a) the Trust Depositor has not made such transfer with
actual intent to hinder, delay or defraud any creditor of the Trust Depositor,
and (b) the Trust Depositor has not received less than a reasonably equivalent
value in exchange for such transfer, is not on the date thereof insolvent (nor
will become insolvent as a result thereof), is not engaged (or about to engage)
in a business or transaction for which it has unreasonably small capital, and
does not intend to incur or believe it will incur debts beyond its ability to
pay when matured.

(13)         Each
of the agreements and conditions of the Trust Depositor to be performed on or
before the Closing Date pursuant to the Program Agreements have been performed
in all material respects.

*   
*    *    *

 B-2

In Witness Whereof, I have affixed my signature hereto this     
day of                 .

	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  
	
   

  	
  Title:

  

 

Exhibit
C

[Form of Closing Certificate of Servicer/Seller]

HARLEY-DAVIDSON CREDIT CORP.

Officer’s Certificate

The undersigned certifies
that he is [                 ]
of Harley-Davidson Credit Corp. (“Harley-Davidson Credit”),
and that as such is duly authorized to execute and deliver this certificate on
behalf of Harley-Davidson Credit, as Servicer, in connection with the Sale and
Servicing Agreement (the  “Sale and Servicing Agreement”) dated as of August 15, 2007
(the “Effective Date”) by and among Harley-Davidson
Credit, as Servicer, Harley-Davidson Customer Funding Corp. (“CFC”), The Bank of New York Trust Company, N.A., as
Indenture Trustee and Harley-Davidson Motorcycle Trust 2007-3 (“Issuer”), in connection with the Transfer and Sale Agreement
dated as of the Effective Date (the “Transfer and Sale
Agreement”) by and between Harley-Davidson Credit and CFC (all
capitalized terms used herein without definition having the respective meanings
set forth in the Sale and Servicing Agreement), and further certifies as
follows:

(1)           Attached
hereto as Exhibit I is a true and correct copy of
the Articles of Incorporation of Harley-Davidson Credit, together with all
amendments thereto as in effect on the date hereof.

(2)           There
has been no other amendment or other document filed affecting the Articles of
Incorporation of Harley-Davidson Credit since August 9, 1999, and no such
amendment has been authorized by the Board of Directors or shareholders of
Harley-Davidson Credit.

(3)           Attached
hereto as Exhibit II is a Certificate of the
Secretary of State of the State of Nevada dated as of a recent date, stating
that Harley-Davidson Credit is duly incorporated under the laws of the State of
Nevada and is in good standing.

(4)           Attached
hereto as Exhibit III is a true and correct copy
of the By-laws of Harley-Davidson Credit which were in full force and
effect as of August 1999 and at all times subsequent thereto.

(5)           Attached
hereto as Exhibit IV is a true and correct copy of
resolutions adopted pursuant to a unanimous written consent of the Board of
Directors of Harley-Davidson Credit and relating to the authorization,
execution, delivery and performance of the Transfer and Sale Agreement, the
Sale and Servicing Agreement, the Underwriting Agreement and the Administration
Agreement.  Said resolutions have not
been amended, modified, annulled or revoked, and are on the date hereof in full
force and effect and are the only resolutions relating to these matters which
have been adopted by the Board of Directors.

(6)           No
event with respect to Harley-Davidson Credit has occurred and is continuing
which would constitute an Event of Termination or an event that, with notice or
the passage of

 C-1
 

time, would constitute an Event of Termination under the Sale and
Servicing Agreement.  To the best of my
knowledge after reasonable investigation, there has been no material adverse
change in the condition, financial or otherwise, or the earnings, business
affairs or business prospects of Harley-Davidson Credit, whether or not arising
in the ordinary course of business, since the respective dates as of which
information is given in the Preliminary Prospectus (as defined in the
Underwriting Agreement) or the Prospectus and except as set forth therein.

(7)           All
federal, state and local taxes of Harley-Davidson Credit due and owing as of
the date hereof have been paid.

(8)           All
representations and warranties of Harley-Davidson Credit contained in the
Transfer and Sale Agreement, the Sale and Servicing Agreement, the Underwriting
Agreement and the Administration Agreement (collectively, the “Program Agreements”) or in any
document, certificate or financial or other statement delivered in connection
therewith are true and correct as of the date hereof.

(9)           There
is no action, investigation or proceeding pending or, to my knowledge,
threatened against Harley-Davidson Credit before any court, administrative
agency or other tribunal (a) asserting the invalidity of any Program Agreement
to which Harley-Davidson Credit is a party; or (b) which is likely materially and
adversely to affect Harley-Davidson Credit’s performance of its obligations
under, or the validity or enforceability of, the Program Agreements.

(10)         No
consent, approval, authorization or order of, and no notice to or filing with,
any governmental agency or body or state or federal court is required to be
obtained by Harley-Davidson Credit for Harley-Davidson Credit’s consummation of
the transactions contemplated by the Program Agreements, except such as have
been obtained or made and such as may be required under the blue sky laws of
any jurisdiction in connection with the issuance and sale of the Notes or the
Certificate.

(11)         Schedule A hereto contains a complete list of all
material agreements (other than the Transfer and Sale Agreement) or instruments
evidencing or governing indebtedness for money borrowed to which
Harley-Davidson Credit is a party or by which Harley-Davidson Credit or its
property is bound.  Neither
Harley-Davidson Credit’s transfer and assignment of the Contract Assets to CFC,
CFC’s concurrent transfer and assignment of the Trust Corpus to the Trust, nor
the concurrent pledge by the Trust of the Collateral to the Indenture Trustee,
nor the issuance and sale of the Notes or the Certificate or the entering into
of the Program Agreements, nor the consummation of any other of the
transactions contemplated therein, will violate or conflict with any agreement
or instrument to which Harley-Davidson Credit is a party or by which it is
otherwise bound.

(12)         In
connection with the transfers of Contracts and related assets contemplated in
the Transfer and Sale Agreement, (a) Harley-Davidson Credit has not made such
transfer with actual intent to hinder, delay or defraud any creditor of
Harley-Davidson Credit, and (b) Harley-Davidson Credit has not received less
than a reasonably equivalent value in exchange for such transfer, is not on the
date hereof insolvent (nor will Harley-Davidson Credit become insolvent as a
result thereof), is not engaged (or about to engage) in a business or transaction
for which it has

 C-2
 

unreasonably small capital, and does not intend to incur or believe it
will incur debts beyond its ability to pay when matured.

(13)         The
sole shareholder of Harley-Davidson Credit is Harley-Davidson Financial
Services, Inc., a Delaware corporation, which has its chief executive office
and only office in Chicago, Illinois, and has no other offices in any other
state.

(14)         Each
of the agreements and conditions of Harley-Davidson Credit to be performed or
satisfied on or before the Closing Date under the Program Agreements has been
performed or satisfied in all material respects.

(15)         Each
Contract being transferred pursuant to the Transfer and Sale Agreement is
evidenced by a written agreement providing for a repayment obligation as well
as a security interest in the related Motorcycle securing such obligation, and
conforms as to these matters in all material respects with the form of written
Contract provided as Exhibit A
hereto (with such minor variations as to specific terms as may be required or
deemed desirable in respect of the laws or requirements of particular states).

(16)         Harley-Davidson
Credit has not authorized the filing of any UCC financing statements listing
the Contract Assets as collateral other than financing statements relating to
the transactions contemplated in the Transfer and Sale Agreement and in the
agreements listed on Schedule A
hereto.

*  
*   *   *  
*   *

 C-3

In Witness Whereof, I have affixed my signature hereto this     
day of               .

	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  
	
   

  	
  Title:

  

 

Exhibit D

[RESERVED]

 D-1

Exhibit
E

SERVICING CRITERIA TO BE ADDRESSED IN

INDENTURE TRUSTEE’S ASSESSMENT OF COMPLIANCE

The assessment of compliance to be delivered by the Indenture Trustee
shall address, at a minimum, the criteria identified as below as “Applicable
Servicing Criteria” (1):

Servicing
Criteria

	
  Reference

  	
   

  	
  Criteria

  	
   

  	
  Applicable

  Servicing

  Criteria

  
	
   

  	
   

  	
  General
  Servicing Considerations

  	
   

  	
   

  
	
  1122(d)(1)(i)

  	
   

  	
  Policies and procedures are instituted to monitor
  any performance or other triggers and events of default in accordance with
  the transaction agreements.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(1)(ii)

  	
   

  	
  If any material servicing activities are outsourced
  to third parties, policies and procedures are instituted to monitor the third
  party’s performance and compliance with such servicing activities.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(1)(iii)

  	
   

  	
  Any requirements in the transaction agreements to
  maintain a back-up servicer for the pool assets are maintained.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(1)(iv)

  	
   

  	
  A fidelity bond and errors and omissions policy is
  in effect on the party participating in the servicing function throughout the
  reporting period in the amount of coverage required by and otherwise in
  accordance with the terms of the transaction agreements.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cash
  Collection and Administration

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(2)(i)

  	
   

  	
  Payments on pool assets are deposited into the
  appropriate custodial bank accounts and related bank clearing accounts no
  more than two business days following receipt, or such other number of days
  specified in the transaction agreements.

  	
   

  	
  x(2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(2)(ii)

  	
   

  	
  Disbursements made via wire transfer on behalf of an
  obligor or to an investor are made only by authorized personnel.

  	
   

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(2)(iii)

  	
   

  	
  Advances of funds or guarantees regarding
  collections, cash flows or distributions, and any interest or other fees
  charged for such advances, are made, reviewed and approved as specified in
  the transaction agreements.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(2)(iv)

  	
   

  	
  The related accounts for the transaction, such as
  cash reserve accounts or accounts established as a form of
  overcollateralization, are separately maintained (e.g., with respect to commingling
  of cash) as set forth in

  	
   

  	
  x

  

 

 E-1
 

 

	
  

  	
   

  	
  the transaction agreements.

  

 

	
  (1)

  	
   

  	
  Each Assessment of compliance delivered by the
  Indenture Trustee shall be made only toward such portion(s) of servicing
  criteria applicable to the Indenture Trustee and not such other portion(s)
  applicable to other persons.

  
	
  (2)

  	
   

  	
  Solely with regard to deposits made by the Indenture
  Trustee.

  

 

 E-2
 

 

 

	
   

  	
   

  	
  Servicing Criteria

  	
   

  	
  Applicable

  Servicing

  Criteria

  
	
  1122(d)(2)(v)

  	
   

  	
  Each custodial account is maintained at a federally
  insured depository institution as set forth in the transaction agreements.
  For purposes of this criterion, “federally insured depository institution”
  with respect to a foreign financial institution means a foreign financial
  institution that meets the requirements of Rule 13k-1(b)(1) of the Securities
  Exchange Act.

  	
   

  	
  x(3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(2)(vi)

  	
   

  	
  Unissued checks are safeguarded so as to prevent
  unauthorized access.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(2)(vii)

  	
   

  	
  Reconciliations are prepared on a monthly basis for
  all asset-backed securities related bank accounts, including custodial
  accounts and related bank clearing accounts. These reconciliations are (A)
  mathematically accurate; (B) prepared within 30 calendar days after the bank
  statement cutoff date, or such other number of days specified in the
  transaction agreements; (C) reviewed and approved by someone other than the
  person who prepared the reconciliation; and (D) contain explanations for
  reconciling items. These reconciling items are resolved within 90 calendar
  days of their original identification, or such other number of days specified
  in the transaction agreements.

  	
   

  	
  o

  

 

	
  Reference

  	
   

  	
  Criteria

  	
   

  	
   

  
	
   

  	
   

  	
  Investor
  Remittances and Reporting

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(3)(i)

  	
   

  	
  Reports to investors, including those to be filed
  with the Commission, are maintained in accordance with the transaction
  agreements and applicable Commission requirements. Specifically, such reports
  (A) are prepared in accordance with timeframes and other terms set forth in
  the transaction agreements; (B) provide information calculated in accordance
  with the terms specified in the transaction agreements; (C) are filed with
  the Commission as required by its rules and regulations; and (D) agree with
  investors’ or the trustee’s records as to the total unpaid principal balance
  and number of pool assets serviced by the Servicer.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(3)(ii)

  	
   

  	
  Amounts due to investors are allocated and remitted
  in accordance with timeframes, distribution priority and other terms set
  forth in the transaction agreements.

  	
   

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(3)(iii)

  	
   

  	
  Disbursements made to an investor are posted within
  two business days to the Servicer’s investor records, or such other number of
  days specified in the transaction agreements.

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(3)(iv)

  	
   

  	
  Amounts remitted to investors per the investor
  reports agree with cancelled checks, or other form of payment, or custodial
  bank statements.

  	
   

  	
  x

  

 

 E-3
 

 

	
  (3)

  	
   

  	
  Assessment to be given by Indenture Trustee shall be
  only with respect to trust accounts maintained by the Indenture Trustee under
  the Sale and Servicing Agreement

  

 

 E-4
 

 

	
  Pool Asset Administration

  

 

	
  1122(d)(4)(i)

  	
   

  	
  Collateral or security on pool assets is maintained
  as required by the transaction agreements or related asset pool documents.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(ii)

  	
   

  	
  Pool assets and related documents are safeguarded as
  required by the transaction agreements

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(iii)

  	
   

  	
  Any additions, removals or substitutions to the
  asset pool are made, reviewed and approved in accordance with any conditions
  or requirements in the transaction agreements.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(iv)

  	
   

  	
  Payments on pool assets, including any payoffs, made
  in accordance with the related pool asset documents are posted to the
  Servicer’s obligor records maintained no more than two business days after
  receipt, or such other number of days specified in the transaction
  agreements, and allocated to principal, interest or other items (e.g.,
  escrow) in accordance with the related asset pool documents.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(v)

  	
   

  	
  The Servicer’s records regarding the accounts and
  the accounts agree with the Servicer’s records with respect to an obligor’s
  unpaid principal balance.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(vi)

  	
   

  	
  Changes with respect to the terms or status of an
  obligor’s account (e.g., loan modifications or re-agings) are made, reviewed
  and approved by authorized personnel in accordance with the transaction
  agreements and related pool asset documents.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(vii)

  	
   

  	
  Loss mitigation or recovery actions (e.g.,
  forbearance plans, modifications and deeds in lieu of foreclosure,
  foreclosures and repossessions, as applicable) are initiated, conducted and
  concluded in accordance with the timeframes or other requirements established
  by the transaction agreements.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(viii)

  	
   

  	
  Records documenting collection efforts are
  maintained during the period a pool asset is delinquent in accordance with
  the transaction agreements. Such records are maintained on at least a monthly
  basis, or such other period specified in the transaction agreements, and
  describe the entity’s activities in monitoring delinquent pool assets
  including, for example, phone calls, letters and payment rescheduling plans
  in cases where delinquency is deemed temporary (e.g., illness or
  unemployment).

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(ix)

  	
   

  	
  Adjustments to interest rates or rates of return for
  pool assets with variable rates are computed based on the related pool asset
  documents.

  	
  o

  

 

	
  Reference

  	
   

  	
  Criteria

  	
   

  
	
  1122(d)(4)(x)

  	
   

  	
  Regarding any funds held in trust for an obligor
  (such as escrow accounts): 

  	
   

  

 

 E-5
 

 

	
   

  	
   

  	
  (A) such funds are analyzed, in accordance with the
  obligor’s Account documents, on at least an annual basis, or such other
  period specified in the transaction agreements; (B) interest on such funds is
  paid, or credited, to obligors in accordance with applicable Account
  documents and state laws; and (C) such funds are returned to the obligor
  within 30 calendar days of full repayment of the related Accounts, or such
  other number of days specified in the transaction agreements.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(xi)

  	
   

  	
  Payments made on behalf of an obligor (such as tax
  or insurance payments) are made on or before the related penalty or
  expiration dates, as indicated on the appropriate bills or notices for such
  payments, provided that such support has been received by the servicer at
  least 30 calendar days prior to these dates, or such other number of days
  specified in the transaction agreements.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(xii)

  	
   

  	
  Any late payment penalties in connection with any
  payment to be made on behalf of an obligor are paid from the servicer’s funds
  and not charged to the obligor, unless the late payment was due to the
  obligor’s error or omission.

  	
  o

  

 

 

	
  Servicing Criteria

  	
  Applicable

  Servicing

  Criteria

  
	
  1122(d)(4)(xiii)

  	
   

  	
  Disbursements made on behalf of an obligor are
  posted within two business days to the obligor’s records maintained by the
  servicer, or such other number of days specified in the transaction
  agreements.

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
  1122(d)(4)(xiv)

  	
   

  	
  Delinquencies, charge-offs and uncollectible
  accounts are recognized and recorded in accordance with the transaction
  agreements.

  	
  o

  
	
   

  	
   

  	
   

  
	
  1122(d)(4)(xv)

  	
   

  	
  Any external enhancement or other support,
  identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is
  maintained as set forth in the transaction agreements.

  	
  o

  

 

 E-6

Exhibit
F

FORM
OF ANNUAL CERTIFICATION OF THE INDENTURE TRUSTEE

Dated:                       

The Bank of New York Trust
Company, N.A., not in its individual capacity but solely as indenture trustee
(the “Indenture Trustee”), certifies to Harley-Davidson Credit Corp. (the “Servicer”),
its officers and Harley-Davidson Motorcycle Trust 2007-3 (the “Issuer”), with
the knowledge and intent that they will rely upon this certification, that:

(1)   It has reviewed the report on assessment of
the Indenture Trustee’s compliance provided in accordance with Rules 13a-18 and
15d-18 under the Securities Exchange Act of 1934, as amended (the “Securities
Exchange Act”) and Item 1122 of Regulation AB under the Securities Act of 1933,
as amended, and the Securities Exchange Act (the “Servicing Assessment”), that
were delivered by the Indenture Trustee to the Seller pursuant to the Sale and
Servicing Agreement dated as of August 15, 2007, among Harley-Davidson Customer
Funding Corp., the Servicer, the Indenture Trustee and the Issuer
(collectively, the “Indenture Trustee Information”);

(2)   To the best of its knowledge, the Indenture
Trustee Information, taken as a whole, does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in the light of the circumstances under which such statements
were made, not misleading with respect to the period of time covered by the
Indenture Trustee Information (in making such statement, the Indenture Trustee
makes no representation or warranty as to any information prepared or provided
to it by a third person and upon which it relied in preparing our information);
and

(3)   To the best of its knowledge, all of the
Indenture Trustee Information required to be provided by the Indenture Trustee
under the Indenture has been provided to the Servicer.

	
  

  	
  THE BANK OF NEW YORK TRUST

  
	
  

  	
  COMPANY, N.A., as Indenture Trustee

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 F-1

Exhibit
G

[Form of Certificate Regarding Reacquired
Contracts]

Harley-Davidson Credit Corp.

Certificate Regarding Reacquired Contracts

The undersigned certifies
that he is the [           ]
of Harley-Davidson Credit Corp., a Nevada corporation (the  “Servicer”), and that as such is duly authorized to execute
and deliver this certificate on behalf of the Servicer pursuant to Section 7.08
of the Sale and Servicing Agreement (the “Agreement”)
dated as of August 15, 2007 by and among Harley-Davidson Customer Funding
Corp., as Trust Depositor, the Servicer, The Bank of New York Trust Company,
N.A., as Indenture Trustee, and Harley-Davidson Motorcycle Trust 2007-3 (all
capitalized terms used herein without definition having the respective meanings
specified in the Agreement), and further certifies that:

1.                                       The Contracts on the attached schedule are to
be reacquired by the [Seller/Servicer] on the date hereof pursuant to [Section
7.08 of the Agreement and Section 5.01 of the Transfer and Sale
Agreement/Section 7.10 of the Agreement/Section 7.11 of the Agreement.]

2.                                       Upon deposit of the Purchase Price for such
Contracts, such Contracts may, pursuant to Section 7.09 of the Agreement, be
assigned by the Trustee to the Seller[/Servicer].

IN WITNESS WHEREOF, I have
affixed hereunto my signature this              
day of                  .

	
  

  	
  Harley-Davidson Credit Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed Name:

  
	
   

  	
  Title:

  

 

 G-1

Exhibit
H

[List of Contracts]

 H-1

Exhibit
I

[Form of Monthly Report to Noteholders and
the Certificateholder]

[see attached]

 I-1

Exhibit J

[Seller’s Representations and Warranties]

(1)                                  Representations
and Warranties Regarding Seller.  Seller represents and warrants, as of the
execution and delivery of this Agreement and as of the Closing Date, 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 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

 J-1
 

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)                                 Buell. 
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.

(2)                                 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, that:

(a)                                  List of Contracts.  The
information set forth in the List of Contracts is true, complete and correct in
all material respects as of the Cutoff Date.

(b)                                 Payments.  As
of the Cutoff Date, 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, the terms of the Contracts have not 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.  The
Seller, in accordance with its policies and procedures, has determined that, as
of the date of origination of each Contract, the related Obligor had obtained
or agreed to obtain physical damage insurance covering the Motorcycle.  The terms of each Contract require that for
the term of such Contract the Motorcycle securing such Contract will be covered
by physical damage insurance.

 J-2
 

(g)                                 Origination.  Each
Contract (i) was originated by a Harley-Davidson motorcycle dealer or by
Eaglemark Savings Bank, in each case, in the regular course of its business,
(ii) was fully and properly executed by the parties thereto, and (iii) has been
purchased by Seller in the regular course of its business.  Each Contract was sold by Eaglemark Savings
Bank or such motorcycle dealer, as the case may be, to the Seller without any
fraud or misrepresentation on the part of Eaglemark Savings Bank or, to the
knowledge of the Seller, such motorcycle dealer.

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

(i)                                     Compliance with Law.  None
of the Contracts, the origination of the Contracts by Harley-Davidson
motorcycle dealers or Eaglemark Savings Bank, the purchase of the Contracts by
the Seller, the sale of the Contracts by the Seller to the Trust Depositor or
by the Trust Depositor to the Trust, or any combination of the foregoing,
violated at the time of origination or as of the Closing Date, in any material
respect 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.

(j)                                     Contract in Force.  As
of the Closing Date, 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
validly assigned by Eaglemark Savings Bank to Seller (where applicable) and by
Seller to the Trust Depositor.  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 prior to the transfer, assignment and conveyance thereof,
each Contract is secured by a first priority, validly perfected security
interest in the Motorcycle covered thereby in favor of the Seller or Eaglemark
Savings Bank as secured party or all necessary and appropriate actions have
been commenced that would result in a first priority, validly perfected
security interest in the Motorcycle covered thereby in favor of the Seller or
Eaglemark Savings Bank as secured party, except, in each case, as to priority
for any lien for taxes, labor, materials or of any state law enforcement agency
affecting a Motorcycle.

(1)                                  Good Title.  Each
Contract was purchased by Seller for value and taken into possession prior to
the Cutoff Date 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,

 J-3
 

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, immediately
upon the transfer of each Contract by the Seller, the Trust Depositor shall
have good and marketable title to each Contract free and clear of any
encumbrance, equity, loan, pledge, charge, claim or security interest, and, immediately
upon the transfer of each Contract by the Trust Depositor, the Issuer shall
have good and marketable title to each Contract free and clear of any
encumbrance, equity, loan, pledge, charge, claim or security interest.

(m)                               No Defaults.  As
of the Cutoff Date, 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 Cutoff Date, no Motorcycle had been
repossessed.

(n)                                 No Liens.  As
of the Closing Date 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 liens prior to, or equal with, the
lien of such Contract.

(o)                                 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.

(p)                                 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.

(q)                                 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.

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

(s)                                  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.

(t)                                    Obligor Bankruptcy.  At
the Cutoff Date, no Obligor was subject to a bankruptcy proceeding (according
to the records of the Seller) within the one year preceding the Cutoff Date.

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

 J-4
 

(v)                                 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.

(w)                               Selection Criteria.  Each Contract is secured by a new or used Motorcycle.  No Contract has a Contract Rate less than
4.027%.  Each Contract amortizes the
amount financed over an original term no greater than 84 months.  Each Contract has a Principal Balance of at
least $500.00 as of the related Cutoff Date.

(3)                                  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, that:

(a)                                  Amounts.  The
aggregate Principal Balances payable by Obligors under the Contracts as of the
Cutoff Date equals or exceeds the sum of the principal balance of the Notes on
the Closing Date.

(b)                                 Characteristics.  The
Contracts have the following characteristics: (i) all the Contracts are secured
by Motorcycles; (ii) no Contract has a remaining maturity of more than 84
months; and (iii) the final scheduled payment on the Contract with the latest
maturity is due not later than October 2014. 
Approximately 84.42% of the Principal Balance of the Contracts as of the
Cutoff Date is attributable to loans for purchases of new Motorcycles and
approximately 15.58% is attributable to loans for purchases of used Motorcycles.  No Contract was originated after the Cutoff
Date.  No Contract has a Contract Rate
less than 4.027%.  Approximately 99.06%
of the Principal Balance of the Contracts as of the Cutoff Date is attributable
to loans for purchases of Motorcycles manufactured by Harley-Davidson or Buell
and approximately 0.94% of the Principal Balance of the Contracts as of the
Cutoff Date is attributable to loans to purchase Motorcycles not manufactured
by Harley-Davidson or Buell.

(c)                                  Marking Records.  As
of the Closing Date, 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 Corpus, 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 the Transfer and Sale Agreement and this 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.

(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 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.

 J-5
 

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

(4)                                  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 that:

(a)                                  Possession. 
Immediately prior to the Closing 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 the Transfer and Sale 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.

 J-6

Exhibit K

[Lockbox Bank and Lockbox Account]

	
  Lockbox

  
	
   

  
	
   

  	
  Harley-Davidson Credit Corp.

  
	
   

  	
  8529 Innovation Way

  
	
   

  	
  Chicago, Illinois 60682-0085

  
	
   

  	
   

  
	
  Lockbox Bank

  
	
   

  	
   

  
	
   

  	
  LaSalle Bank National Association

  
	
   

  	
  135 South LaSalle Street

  
	
   

  	
  Chicago, Illinois 60674

  

 

 K-1

Exhibit L

RESERVED

 L-1Exhibit 10.3

Execution
Copy

 

ADMINISTRATION
AGREEMENT

among

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2007-3,

as
Issuer,

HARLEY-DAVIDSON
CREDIT CORP.,

as
Administrator,

HARLEY-DAVIDSON
CUSTOMER FUNDING CORP.,

as Trust
Depositor,

and

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

as
Indenture Trustee

Dated as of August 15, 2007

 

 

TABLE OF
CONTENTS

	
  SECTION 1.

  	
  DUTIES OF THE ADMINISTRATOR

  	
  1

  
	
  SECTION 2.

  	
  RECORDS

  	
  7

  
	
  SECTION 3.

  	
  COMPENSATION

  	
  7

  
	
  SECTION 4.

  	
  ADDITIONAL INFORMATION TO BE FURNISHED TO THE
  ISSUER

  	
  7

  
	
  SECTION 5.

  	
  INDEPENDENCE OF THE ADMINISTRATOR

  	
  7

  
	
  SECTION 6.

  	
  NO JOINT VENTURE

  	
  7

  
	
  SECTION 7.

  	
  OTHER ACTIVITIES OF ADMINISTRATOR

  	
  7

  
	
  SECTION 8.

  	
  TERM OF AGREEMENT; RESIGNATION AND REMOVAL OF
  ADMINISTRATOR

  	
  7

  
	
  SECTION 9.

  	
  ACTION UPON TERMINATION, RESIGNATION OR REMOVAL

  	
  9

  
	
  SECTION 10.

  	
  NOTICES

  	
  9

  
	
  SECTION 11.

  	
  AMENDMENTS

  	
  9

  
	
  SECTION 12.

  	
  SUCCESSORS AND ASSIGNS

  	
  10

  
	
  SECTION 13.

  	
  GOVERNING LAW

  	
  10

  
	
  SECTION 14.

  	
  HEADINGS

  	
  10

  
	
  SECTION 15.

  	
  COUNTERPARTS

  	
  10

  
	
  SECTION 16.

  	
  SEVERABILITY

  	
  10

  
	
  SECTION 17.

  	
  NOT APPLICABLE TO HARLEY-DAVIDSON CREDIT IN
  OTHER CAPACITIES

  	
  10

  
	
  SECTION 18.

  	
  LIMITATION OF LIABILITY OF OWNER TRUSTEE AND
  INDENTURE TRUSTEE

  	
  10

  
	
  SECTION 19.

  	
  THIRD-PARTY BENEFICIARY

  	
  11

  
	
  SECTION 20.

  	
  SURVIVABILITY

  	
  11

  
	
  SECTION 21.

  	
  LIMITATION OF RIGHTS

  	
  11

  

 

This Administration
Agreement, dated as of August 15, 2007, among Harley-Davidson Motorcycle Trust
2007-3 (the “Issuer”), Harley-Davidson Credit Corp.
(together with its successors and assigns “Harley-Davidson Credit”)
in its capacity as administrator, the “Administrator”),
Harley-Davidson Customer Funding Corp. (the “Trust Depositor”)
and The Bank of New York Trust Company, N.A., not in its individual capacity
but solely as Indenture Trustee (together with its successors and assigns, the “Indenture Trustee”).

W I T N E
S S E T H:

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

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

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

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

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

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

Section 1.                                          Duties
of the Administrator.

(a)                                  Duties
with respect to the Indenture.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(FF)                          the
appointment of a successor Indenture Trustee.

(ii)                                  The
Administrator will:

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

 4
 

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

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

(b)                                 Additional Duties.

(i)                                   In
addition to the duties set forth in Section 1(a)(i), the Administrator shall
perform such calculations and shall prepare or shall cause the preparation by
other appropriate persons of, and shall execute on behalf of the Issuer or the
Owner Trustee, all such documents, reports, filings, instruments, certificates
and opinions that the Issuer or the Owner Trustee are required to prepare, file
or deliver pursuant to the Transaction Documents or under Section 5.03 of the
Trust Agreement, and at the request of the Owner Trustee shall take all
appropriate action that the Issuer or the Owner Trustee are required to take
pursuant to the Transaction Documents. 
In furtherance thereof, the Owner Trustee shall, on behalf of the
Issuer, execute and deliver to the Administrator and to each successor
Administrator appointed pursuant to the terms hereof, one or more powers of
attorney substantially in the form of Exhibit A
hereto, appointing the Administrator the attorney-in-fact of the Issuer for the
purpose of executing on behalf of the Owner Trustee and the Issuer all such
documents, reports, filings, instruments, certificates and opinions.  Subject to Section 5, and in accordance with
the directions of the Issuer, the Administrator shall administer, perform or
supervise the performance of such other activities in connection with the
Collateral (including the Transaction Documents) as are not covered by any of
the foregoing provisions and as are expressly requested by the Issuer and are
reasonably within the capability of the Administrator.

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

(iii)                               Notwithstanding
anything in this Agreement or the Transaction Documents to the contrary, the
Administrator shall be responsible for performance of the duties of the Owner
Trustee set forth in Section 5.03(a), (b), (c) and (d), the penultimate
sentence of Section 5.03 and Section 5.04(a) of the Trust Agreement with
respect to, among other things, accounting and

 5
 

reports to the Owner; provided, however,
that the Owner Trustee shall retain responsibility for the distribution of
information forms necessary to enable the Owner to prepare its federal and
state income tax returns.

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

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

(vi)                              In
carrying out the foregoing duties or any of its other obligations under this
Agreement, the Administrator may enter into transactions or otherwise deal with
any of its Affiliates; provided, however,
that the terms of any such transactions or dealings shall be in accordance with
any directions received from the Issuer and shall be, in the Administrator’s
opinion, no less favorable to the Issuer than would be available from
unaffiliated parties.

(c)                                  Non-Ministerial Matters.

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

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

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

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

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

(E)                                 the
removal of the Indenture Trustee;

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

 6
 

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

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

Section 2.                                          Records.   The Administrator shall maintain appropriate
books of account and records relating to services performed hereunder, which
books of account and records shall be accessible for inspection by the Issuer
and the Owner Trustee at any time during normal business hours.

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

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

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

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

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

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

 7
 

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

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

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

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

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

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

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

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

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

(f)                                    Subject
to Section 8(d) and 8(e), the Administrator acknowledges that upon the
appointment of a Successor Servicer pursuant to the Sale and Servicing
Agreement, the Administrator shall immediately resign and such Successor
Servicer shall automatically become the Administrator under this Agreement.

 8
 

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

Section 10.                                   Notices.  All notices, demands, certificates, requests
and communications hereunder (“notices”) shall be in writing and shall be
effective (a) upon receipt when sent through the U.S. mails, registered or
certified mail, return receipt requested, postage prepaid, with such receipt to
be effective the date of delivery indicated on the return receipt, or (b) one
Business Day after delivery to an overnight courier, or (c) on the date
personally delivered to an Authorized Officer of the party to which sent, or
(d) on the date transmitted by legible telecopier transmission with a
confirmation of receipt, in all cases addressed to the recipient at the address
for such recipient set forth in the Sale and Servicing Agreement.

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

Section 11.                                   Amendments.  This Agreement may be amended from time to
time by a written amendment duly executed and delivered by the parties hereto,
with the written consent of the Owner Trustee but without the consent of the
Noteholders or the Swap Counterparty, for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this
Agreement or of modifying in any manner the rights of the Noteholders; provided
that such amendment will not, in the Opinion of Counsel satisfactory to the
Indenture Trustee, materially and adversely affect the interest of any
Noteholder or the Swap Counterparty. 
This Agreement may also be amended by the parties hereto with the
written consent of the Owner Trustee, the Required Holders and the Swap
Counterparty for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying
in any manner the rights of Noteholders and/or the Swap Counterparty; provided, however, that no such amendment may (i) increase
or reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on the Contracts or distributions that are required to
be made for the benefit of the Noteholders or (ii) reduce the aforesaid
percentage of the holders of Notes which are required to consent to any such
amendment, without the consent of the holders of all outstanding Notes; provided, further, that such amendment shall not materially
and adversely affect the rights and obligations of the Swap Counterparty or the
Issuer under the Interest Rate Swap Agreement unless the Swap Counterparty
shall have consented in writing to such amendment (and such consent shall be
deemed to have been given if the Swap Counterparty does not object in writing
within ten (10) Business Days after receipt of a written request for such
consent).  Notwithstanding the foregoing,
the Administrator may not amend this Agreement without the permission of the
Trust Depositor, which permission shall not be unreasonably withheld.

 9
 

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

Section 13.                                   Governing
Law.  THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

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

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

Section 16.                               Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

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

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

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

 10
 

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

Section 19.                                   Third-party
Beneficiary.  The Owner Trustee is a
third-party beneficiary to this Agreement and is entitled to the rights and
benefits hereunder and may enforce the provisions hereof as if it were a party
hereto.

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

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

[signature page follows]

 11

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

	
  

  	
  HARLEY-DAVIDSON MOTORCYCLE TRUST

  2007-3

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wilmington Trust Company, not in its

  individual capacity but solely as Owner

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ James P. Lawler

  	
   

  
	
   

  	
  Printed Name:

  	
     James
  P. Lawler

  	
   

  
	
   

  	
  Title:

  	
     Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON CUSTOMER FUNDING

  CORP., as Trust Depositor

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Lawrence G. Hund

  	
   

  
	
   

  	
  Printed Name:

  	
     Lawrence
  G. Hund

  	
   

  
	
   

  	
  Title:

  	
  Vice President, Chief Financial Officer &
  Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST

  COMPANY, N.A., not in its individual capacity

  but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Corine D. Twin

  	
   

  
	
   

  	
  Printed Name:   Corine
  D. Twin

  	
   

  
	
   

  	
  Title:   Assistant Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON CREDIT CORP.,

  as Administrator

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Lawrence G. Hund

  	
   

  
	
   

  	
  Printed Name:   Lawrence
  G. Hund

  	
   

  
	
   

  	
  Title:

  	
  Vice President, Chief Financial Officer &
  Assistant Secretary

  
									

 

 

Signature Page to
Administration Agreement

LIMITED
POWER OF ATTORNEY

State
of Illinois     )

)               SS.

County
of Cook    )

KNOW ALL PERSONS BY THESE PRESENTS, that Wilmington
Trust Company, a Delaware banking corporation (the “Owner
Trustee”), whose principal executive office is located at Wilmington
Trust Company, Rodney Square North, 1100 North Market Street, Wilmington,
Delaware Attention:  Trust
Administration, by and through its duly elected and authorized officer, James
P. Lawler, a Vice President, on behalf of itself and of Harley-Davidson
Motorcycle Trust 2007-3 (the “Trust”) as
Issuer under the Administration Agreement, dated as of August 15, 2007 (the “Administration Agreement”), among the Trust,
Harley-Davidson Customer Funding Corp., The Bank of New York Trust Company,
N.A., as Indenture Trustee, and Harley-Davidson Credit Corp., as Administrator,
does hereby nominate, constitute and appoint Harley-Davidson Credit Corp., a
Nevada corporation, each of its officers from time to time and each of its
employees authorized by it from time to time to act hereunder, jointly and each
of them severally, together or acting alone, its true and lawful
attorney-in-fact, for the Owner Trustee and the Issuer in their name, place and
stead, in the sole discretion of such attorney-in-fact, to perform such
calculations and prepare or cause the preparation by other appropriate persons
of, and to execute on behalf of the Issuer or the Owner Trustee, all such
documents, reports, filings, instruments, certificates and opinions that the
Issuer or the Owner Trustee is required to prepare, file or deliver pursuant to
the Administration Agreement, and to take any and all other action, as such
attorney-in-fact may deem necessary or desirable in accordance with the
directions of the Owner Trustee and in connection with its duties as
Administrator or successor Administrator under the Administration
Agreement.  Capitalized terms used herein
that are not otherwise defined shall have the meanings ascribed thereto in the
Administration Agreement.

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

The Owner Trustee hereby agrees that no person or
other entity dealing with the attorney-in-fact shall be bound to inquire into
such attorney-in-fact’s power and authority hereunder and any such person or
entity shall be fully protected in relying on such power of authority.

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

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

Executed as of this 15th
day of August, 2007.

	
  

  	
  Wilmington Trust Company, not in its individual

  
	
   

  	
  capacity but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ James P. Lawler

  	
   

  
	
   

  	
  Printed Name:

  	
     James P. Lawler

  	
   

  
	
   

  	
  Title:

  	
     Vice President

  	
   

  
									

 

CERTIFICATE
OF ACKNOWLEDGMENT OF

NOTARY
PUBLIC

	
  State of Delaware

  	
  )

  
	
   

  	
   

  
	
   

  	
  ) SS.

  
	
   

  	
   

  
	
  County of New Castle

  	
  )

  

 

On August 23, 2007 before me, Amanda E. Gamble—Sales
Associate

           [Insert name and title of notary]

personally appeared James P. Lawler, Vice President.

x                                  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 person(s) acted, executed the
instrument.

	
  

  	
  WITNESS my hand and official seal.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
     /s/ Amanda E. Gamble

  	
   

  
	
   

  	
  [SEAL]

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