Document:

Exhibit 4.2

 

 

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2008-1,

as Issuer,

 

 

and

 

 

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

not in its individual capacity but solely in its capacity

as Indenture Trustee

 

 

 

 

INDENTURE

 

Dated as of February 15, 2008

 

 

 

 

Motorcycle Contract Backed Notes

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  	
   

  	
  Indenture

  
	
  Section

  	
   

  	
  Section

  
	
  310(a)(1)

  	
   

  	
  6.11

  
	
        (a)(2)

  	
   

  	
  6.11

  
	
        (a)(3)

  	
   

  	
  6.10

  
	
        (a)(4)

  	
   

  	
  N.A.

  
	
        (a)(5)

  	
   

  	
  6.11

  
	
        (b)

  	
   

  	
  6.08; 6.11; 11.04

  
	
        (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  6.13

  
	
        (b)

  	
   

  	
  6.13

  
	
        (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  7.01; 7.02

  
	
        (b)

  	
   

  	
  7.02

  
	
        (c)

  	
   

  	
  7.02

  
	
  313(a)

  	
   

  	
  7.04

  
	
        (b)

  	
   

  	
  7.04

  
	
        (c)

  	
   

  	
  7.04

  
	
        (d)

  	
   

  	
  7.04

  
	
  314(a)

  	
   

  	
  7.03

  
	
        (b)

  	
   

  	
  3.06

  
	
        (c)(1)

  	
   

  	
  2.02; 6.02; 11.01

  
	
        (c)(2)

  	
   

  	
  11.01

  
	
        (c)(3)

  	
   

  	
  11.01

  
	
        (d)

  	
   

  	
  11.01

  
	
        (e)

  	
   

  	
  11.01

  
	
        (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  6.01

  
	
        (b)

  	
   

  	
  6.05

  
	
        (c)

  	
   

  	
  6.01

  
	
        (d)

  	
   

  	
  5.12; 6.01

  
	
        (e)

  	
   

  	
  5.14

  
	
  316(a)(1)(A)

  	
   

  	
  5.12

  
	
        (a)(1)(B)

  	
   

  	
  5.02

  
	
        (a)(2)

  	
   

  	
  N.A.

  
	
        (b)

  	
   

  	
  5.08

  
	
        (c)

  	
   

  	
  N.A.

  
	
  317(a)

  	
   

  	
  5.03; 5.04

  
	
        (b)

  	
   

  	
  3.03

  
	
  318(a)

  	
   

  	
  11.18

  

*           N.A. means Not
Applicable

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

 

 

i

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
  2 

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  DEFINITIONS

  	
  2

  
	
  SECTION 1.02.

  	
  INCORPORATION BY REFERENCE OF TRUST INDENTURE
  ACT

  	
  9

  
	
  SECTION 1.03.

  	
  RULES OF CONSTRUCTION

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  	
   

  	
  10 

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  FORM

  	
  10

  
	
  SECTION 2.02.

  	
  EXECUTION, AUTHENTICATION AND DELIVERY

  	
  11

  
	
  SECTION 2.03.

  	
  TEMPORARY NOTES

  	
  11

  
	
  SECTION 2.04.

  	
  REGISTRATION; REGISTRATION OF TRANSFER AND
  EXCHANGE

  	
  12

  
	
  SECTION 2.05.

  	
  MUTILATED, DESTROYED, LOST OR STOLEN NOTES

  	
  14

  
	
  SECTION 2.06.

  	
  PERSONS DEEMED OWNER

  	
  14

  
	
  SECTION 2.07.

  	
  PAYMENT OF PRINCIPAL AND INTEREST; DEFAULTED
  INTEREST

  	
  14

  
	
  SECTION 2.08.

  	
  CANCELLATION

  	
  15

  
	
  SECTION 2.09.

  	
  BOOK-ENTRY NOTES

  	
  15

  
	
  SECTION 2.10.

  	
  NOTICES TO CLEARING AGENCY

  	
  16

  
	
  SECTION 2.11.

  	
  DEFINITIVE NOTES

  	
  16

  
	
  SECTION 2.12.

  	
  RELEASE OF COLLATERAL

  	
  17

  
	
  SECTION 2.13.

  	
  TAX TREATMENT

  	
  17

  
	
  SECTION 2.14.

  	
  CALCULATION AGENT

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  	
  22 

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  PAYMENT OF PRINCIPAL AND INTEREST

  	
  22

  
	
  SECTION 3.02.

  	
  MAINTENANCE OF OFFICE OR AGENCY

  	
  23

  
	
  SECTION 3.03.

  	
  MONEY FOR PAYMENTS TO BE HELD IN TRUST

  	
  23

  
	
  SECTION 3.04.

  	
  EXISTENCE

  	
  24

  
	
  SECTION 3.05.

  	
  PROTECTION OF COLLATERAL

  	
  25

  
	
  SECTION 3.06.

  	
  OPINIONS AS TO COLLATERAL

  	
  25

  
	
  SECTION 3.07.

  	
  PERFORMANCE OF OBLIGATIONS; SERVICING OF
  CONTRACTS

  	
  26

  
	
  SECTION 3.08.

  	
  NEGATIVE COVENANTS

  	
  26

  
	
  SECTION 3.09.

  	
  ANNUAL STATEMENT AS TO COMPLIANCE

  	
  27

  
	
  SECTION 3.10.

  	
  ISSUER MAY CONSOLIDATE, ETC. ONLY ON
  CERTAIN TERMS

  	
  27

  
	
  SECTION 3.11.

  	
  SUCCESSOR OR TRANSFEREE

  	
  29

  
	
  SECTION 3.12.

  	
  NO OTHER BUSINESS

  	
  29

  
	
  SECTION 3.13.

  	
  NO BORROWING

  	
  29

  
	
  SECTION 3.14.

  	
  SERVICER’S OBLIGATIONS

  	
  29

  
	
  SECTION 3.15.

  	
  GUARANTEES, LOANS ADVANCES AND OTHER
  LIABILITIES

  	
  29

  
	
  SECTION 3.16.

  	
  CAPITAL EXPENDITURES

  	
  29

  
	
  SECTION 3.17.

  	
  RESTRICTED PAYMENTS

  	
  29

  
	
  SECTION 3.18.

  	
  NOTICE OF EVENTS OF DEFAULT

  	
  30

  

 

 

ii

 

 

	
  SECTION 3.19.

  	
   

  	
  FURTHER INSTRUMENTS AND ACTS

  	
   

  	
  30

  	
   

  
	
  SECTION 3.20.

  	
   

  	
  COMPLIANCE WITH LAWS

  	
   

  	
  30

  	
   

  
	
  SECTION 3.21.

  	
   

  	
  AMENDMENTS OF SALE AND SERVICING AGREEMENT AND
  TRUST AGREEMENT

  	
   

  	
  30

  	
   

  
	
  SECTION 3.22.

  	
   

  	
  REMOVAL OF ADMINISTRATOR

  	
   

  	
  30

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  	
  30 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  SATISFACTION AND DISCHARGE OF INDENTURE

  	
   

  	
  30

  	
   

  
	
  SECTION 4.02.

  	
   

  	
  APPLICATION OF TRUST MONEY

  	
   

  	
  31

  	
   

  
	
  SECTION 4.03.

  	
   

  	
  REPAYMENT OF MONEYS HELD BY PAYING AGENT

  	
   

  	
  31

  	
   

  
	
  SECTION 4.04.

  	
   

  	
  RELEASE OF COLLATERAL

  	
   

  	
  32

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REMEDIES

  	
   

  	
   

  	
   

  	
  32 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  32

  	
   

  
	
  SECTION 5.02.

  	
   

  	
  RIGHTS UPON EVENT OF DEFAULT

  	
   

  	
  33

  	
   

  
	
  SECTION 5.03.

  	
   

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

  	
   

  	
  33

  	
   

  
	
  SECTION 5.04.

  	
   

  	
  REMEDIES

  	
   

  	
  35

  	
   

  
	
  SECTION 5.05.

  	
   

  	
  OPTIONAL PRESERVATION OF THE CONTRACTS

  	
   

  	
  36

  	
   

  
	
  SECTION 5.06.

  	
   

  	
  PRIORITIES

  	
   

  	
  36

  	
   

  
	
  SECTION 5.07.

  	
   

  	
  LIMITATION OF SUITS

  	
   

  	
  36

  	
   

  
	
  SECTION 5.08.

  	
   

  	
  UNCONDITIONAL RIGHTS OF NOTEHOLDERS TO RECEIVE
  PRINCIPAL AND INTEREST

  	
   

  	
  37

  	
   

  
	
  SECTION 5.09.

  	
   

  	
  RESTORATION OF RIGHTS AND REMEDIES

  	
   

  	
  37

  	
   

  
	
  SECTION 5.10.

  	
   

  	
  RIGHTS AND REMEDIES CUMULATIVE

  	
   

  	
  37

  	
   

  
	
  SECTION 5.11.

  	
   

  	
  DELAY OR OMISSION NOT A WAIVER

  	
   

  	
  37

  	
   

  
	
  SECTION 5.12.

  	
   

  	
  CONTROL BY NOTEHOLDERS

  	
   

  	
  37

  	
   

  
	
  SECTION 5.13.

  	
   

  	
  WAIVER OF PAST DEFAULTS

  	
   

  	
  38

  	
   

  
	
  SECTION 5.14.

  	
   

  	
  UNDERTAKING FOR COSTS

  	
   

  	
  38

  	
   

  
	
  SECTION 5.15.

  	
   

  	
  WAIVER OF STAY OR EXTENSION LAWS

  	
   

  	
  38

  	
   

  
	
  SECTION 5.16.

  	
   

  	
  ACTION ON NOTES

  	
   

  	
  38

  	
   

  
	
  SECTION 5.17.

  	
   

  	
  PERFORMANCE AND ENFORCEMENT OF CERTAIN
  OBLIGATIONS

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE INDENTURE TRUSTEE

  	
   

  	
  39 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  DUTIES OF INDENTURE TRUSTEE

  	
   

  	
  39

  	
   

  
	
  SECTION 6.02.

  	
   

  	
  RIGHTS OF INDENTURE TRUSTEE

  	
   

  	
  40

  	
   

  
	
  SECTION 6.03.

  	
   

  	
  INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE

  	
   

  	
  41

  	
   

  
	
  SECTION 6.04.

  	
   

  	
  INDENTURE TRUSTEE’S DISCLAIMER

  	
   

  	
  41

  	
   

  
	
  SECTION 6.05.

  	
   

  	
  NOTICE OF DEFAULTS

  	
   

  	
  41

  	
   

  
	
  SECTION 6.06.

  	
   

  	
  REPORTS BY INDENTURE TRUSTEE TO HOLDERS

  	
   

  	
  42

  	
   

  
	
  SECTION 6.07.

  	
   

  	
  COMPENSATION AND INDEMNITY

  	
   

  	
  42

  	
   

  
	
  SECTION 6.08.

  	
   

  	
  REPLACEMENT OF INDENTURE TRUSTEE

  	
   

  	
  42

  	
   

  
	
  SECTION 6.09.

  	
   

  	
  SUCCESSOR INDENTURE TRUSTEE BY MERGER

  	
   

  	
  43

  	
   

  
	
  SECTION 6.10.

  	
   

  	
  APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE
  INDENTURE TRUSTEE

  	
   

  	
  44

  	
   

  
	
  SECTION 6.11.

  	
   

  	
  ELIGIBILITY

  	
   

  	
  45

  	
   

  
	
  SECTION 6.12.

  	
   

  	
  PENNSYLVANIA MOTOR VEHICLE SALES FINANCE ACT
  LICENSES

  	
   

  	
  46

  	
   

  
	
  SECTION 6.13.

  	
   

  	
  PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER

  	
   

  	
  46

  	
   

  

 

 

iii

 

 

 

	
  SECTION 6.14.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES OF INDENTURE
  TRUSTEE

  	
   

  	
  46

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOTEHOLDERS’ LISTS AND REPORTS 

  	
   

  	
  47 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  ISSUER TO FURNISH INDENTURE TRUSTEE NAMES AND
  ADDRESSES OF NOTEHOLDERS

  	
   

  	
  47

  	
   

  
	
  SECTION 7.02.

  	
   

  	
  PRESERVATION OF INFORMATION: COMMUNICATION TO
  NOTEHOLDERS

  	
   

  	
  47

  	
   

  
	
  SECTION 7.03.

  	
   

  	
  REPORTS BY ISSUER

  	
   

  	
  47

  	
   

  
	
  SECTION 7.04.

  	
   

  	
  REPORTS BY INDENTURE TRUSTEE

  	
   

  	
  48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCOUNTS, DISBURSEMENTS AND RELEASES

  	
   

  	
  48 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  COLLECTION OF MONEY

  	
   

  	
  48

  	
   

  
	
  SECTION 8.02.

  	
   

  	
  TRUST ACCOUNTS

  	
   

  	
  48

  	
   

  
	
  SECTION 8.03.

  	
   

  	
  GENERAL PROVISIONS REGARDING ACCOUNTS

  	
   

  	
  49

  	
   

  
	
  SECTION 8.04.

  	
   

  	
  RELEASE OF COLLATERAL

  	
   

  	
  49

  	
   

  
	
  SECTION 8.05.

  	
   

  	
  OPINION OF COUNSEL

  	
   

  	
  50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  	
  50 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
  NOTEHOLDERS

  	
   

  	
  50

  	
   

  
	
  SECTION 9.02.

  	
   

  	
  SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS
  AND THE SWAP COUNTERPARTY

  	
   

  	
  51

  	
   

  
	
  SECTION 9.03.

  	
   

  	
  EXECUTION OF SUPPLEMENTAL INDENTURES

  	
   

  	
  53

  	
   

  
	
  SECTION 9.04.

  	
   

  	
  EFFECT OF SUPPLEMENTAL INDENTURE

  	
   

  	
  53

  	
   

  
	
  SECTION 9.05.

  	
   

  	
  CONFORMITY WITH TRUST INDENTURE ACT

  	
   

  	
  53

  	
   

  
	
  SECTION 9.06.

  	
   

  	
  REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES

  	
   

  	
  53

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION OF NOTES

  	
   

  	
  53 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
   

  	
  REDEMPTION

  	
   

  	
  53

  	
   

  
	
  SECTION 10.02.

  	
   

  	
  FORM OF REDEMPTION NOTICE

  	
   

  	
  54

  	
   

  
	
  SECTION 10.03.

  	
   

  	
  NOTES PAYABLE ON REDEMPTION DATE

  	
   

  	
  54

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  	
   

  	
  54 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
   

  	
  COMPLIANCE CERTIFICATES AND OPINIONS, ETC.

  	
   

  	
  54

  	
   

  
	
  SECTION 11.02.

  	
   

  	
  FORM OF DOCUMENTS DELIVERED TO INDENTURE
  TRUSTEE

  	
   

  	
  56

  	
   

  
	
  SECTION 11.03.

  	
   

  	
  ACTS OF NOTEHOLDERS AND THE SWAP COUNTERPARTY

  	
   

  	
  57

  	
   

  
	
  SECTION 11.04.

  	
   

  	
  NOTICES

  	
   

  	
  57

  	
   

  
	
  SECTION 11.05.

  	
   

  	
  NOTICES TO NOTEHOLDERS; WAIVER

  	
   

  	
  57

  	
   

  
	
  SECTION 11.06.

  	
   

  	
  ALTERNATE PAYMENT AND NOTICE PROVISIONS

  	
   

  	
  58

  	
   

  
	
  SECTION 11.07.

  	
   

  	
  EFFECT OF HEADINGS AND TABLE OF CONTENTS

  	
   

  	
  58

  	
   

  
	
  SECTION 11.08.

  	
   

  	
  SUCCESSORS AND ASSIGNS

  	
   

  	
  58

  	
   

  
	
  SECTION 11.09.

  	
   

  	
  SEPARABILITY

  	
   

  	
  58

  	
   

  
	
  SECTION 11.10.

  	
   

  	
  BENEFITS OF INDENTURE

  	
   

  	
  58

  	
   

  
	
  SECTION 11.11.

  	
   

  	
  LEGAL HOLIDAYS

  	
   

  	
  58

  	
   

  

 

 

iv

 

 

	
  SECTION 11.12.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  59

  	
   

  
	
  SECTION 11.13.

  	
   

  	
  COUNTERPARTS

  	
   

  	
  59

  	
   

  
	
  SECTION 11.14.

  	
   

  	
  RECORDING OF INDENTURE

  	
   

  	
  59

  	
   

  
	
  SECTION 11.15.

  	
   

  	
  TRUST OBLIGATION

  	
   

  	
  59

  	
   

  
	
  SECTION 11.16.

  	
   

  	
  NO PETITION

  	
   

  	
  59

  	
   

  
	
  SECTION 11.17.

  	
   

  	
  INSPECTION

  	
   

  	
  59

  	
   

  
	
  SECTION 11.18.

  	
   

  	
  CONFLICT WITH TRUST INDENTURE ACT

  	
   

  	
  60

  	
   

  
	
  SECTION 11.19.

  	
   

  	
  DISCLAIMER AND SUBORDINATION

  	
   

  	
  60

  	
   

  
	
  SECTION 11.20.

  	
   

  	
  LIMITATION OF RIGHTS

  	
   

  	
  60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A-1 - 

  	
  Form of
  Class A-1 Note

  	
   

  	
  A-1-1 

  	
   

  
	
  Exhibit A-2 - 

  	
  Form of
  Class A-2 Note

  	
   

  	
  A-2-1 

  	
   

  
	
  Exhibit A-3a - 

  	
  Form of
  Class A-3a Note

  	
   

  	
  A-3a-1 

  	
   

  
	
  Exhibit A-3b - 

  	
  Form of
  Class A-3b Note

  	
   

  	
  A-3b-1 

  	
   

  
	
  Exhibit A-4 - 

  	
  Form of
  Class A-4 Note

  	
   

  	
  A-4-1 

  	
   

  
	
  Exhibit A-5 - 

  	
  Form of Class B
  Note

  	
   

  	
  A-5-1 

  	
   

  
	
  Exhibit A-6 - 

  	
  Form of Class C
  Note

  	
   

  	
  A-6-1 

  	
   

  
	
  Exhibit B -

  	
  Form of Assignment

  	
   

  	
  B-1 

  	
   

  
	
  Exhibit C - 

  	
  Form of Note
  Depository Agreement

  	
   

  	
  C-1 

  	
   

  
	
  Exhibit D - Form of
  Regulation S Transfer Certificate

  	
   

  	
  D-1 

  	
   

  
	
  Exhibit E - Form of
  Rule 144A Transfer Certificate

  	
   

  	
  E-1 

  	
   

  
	
  Exhibit F - Form of
  Non-U.S. Certificate

  	
   

  	
  F-1 

  	
   

  
	
  Exhibit G - Form of
  Regulation S Certificate

  	
   

  	
  G-1 

  	
   

  

 

 

v

 

 

INDENTURE

 

Indenture,
dated as of February 15, 2008 (this “Indenture”), between Harley-Davidson
Motorcycle Trust 2008-1, a Delaware statutory trust (the “Issuer”) and The Bank
of New York Trust Company, N.A., in its capacity as indenture trustee (the “Indenture
Trustee”) and not in its individual capacity.

 

Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Issuer’s Notes.

 

GRANTING CLAUSE

 

The
Issuer hereby grants, transfers, assigns and otherwise conveys to the Indenture
Trustee on the Closing Date, on behalf of and for the benefit of the Holders of
the Notes, without recourse, all of the Issuer’s right, title and interest
(exclusive of the amount, if any, allocable to any rebatable insurance premium
financed by any Contract) in, to and under: (i) the Contracts secured by
the Motorcycles (which Contracts shall be listed in the List of Contracts); (ii) certain
monies due under the Contracts after the Cutoff Date, including, without
limitation, all payments of principal and interest with respect to any
Motorcycles to which a Contract relates received after the Cutoff Date and all
other proceeds received on or in respect of such Contracts (other than payments
of principal and interest due on or prior to the Cutoff Date); (iii) security
interests in the Motorcycles; (iv) amounts on deposit in the Collection
Account, the Note Distribution Account and the Reserve Fund, including all
Eligible Investments therein and all income from the investment of funds
therein and all proceeds therefrom; (v) proceeds from claims under certain
insurance policies, debt insurance policies or debt cancellation agreements in
respect of individual Motorcycles or obligors under the Contracts; (vi) its
rights under the Sale and Servicing Agreement; (vii) the protective
security interest in certain of the above-described property granted by the
Trust Depositor in favor of the Issuer; (viii) all present and future
claims, demands, causes of and choses in action in respect of any or all of the
foregoing; (ix) all rights to certain rebates of premiums and other
amounts relating to insurance policies, debt cancellation agreements, extended
service contracts or other repair agreements and other items financed under
such Contracts, (x) all rights of the Issuer under the Interest Rate Swap
Agreement, and (xi) all payments on or under and all proceeds of every kind and
nature whatsoever in respect of any or all of the foregoing, including all
proceeds of the conversion, voluntary or involuntary, into cash of other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing (as each such defined term is defined in Section 1.01)
(collectively, the “Collateral”).

 

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

 

The
Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes
and the Swap Counterparty, acknowledges such Grant, accepts the trust under
this Indenture in accordance 

 

 

 

 

 

with
the provisions of this Indenture and agrees to perform its duties required in
this Indenture in accordance with its terms and the terms of the other
Transaction Documents to which it is a party.

 

ARTICLE
ONE

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01.        Definitions.

 

Except as otherwise
specified herein or as the context may otherwise require, capitalized terms
used but not otherwise defined herein shall have the meanings ascribed thereto
in the Sale and Servicing Agreement and the following terms have the respective
meanings set forth below for all purposes of this Indenture.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

2

 

 

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

 

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

 

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

 

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

 

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

 

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

 

“Class A-3
Final Distribution Date” has the meaning set forth in the Sale and
Servicing Agreement.

 

“Class A-3
Notes” means the Class A-3a Notes and the Class A-3b Notes.

 

“Class A-3a
Notes” means the Class A-3a Notes, substantially in the form of Exhibit A-3a.

 

“Class A-3a
Rate” has the meaning set forth in the Sale and Servicing Agreement.

 

“Class A-3b
Notes” means the Class A-3b Notes, substantially in the form of Exhibit A-3b.

 

“Class A-3b
Rate” has the meaning set forth in the Sale and Servicing Agreement.

 

 “Class A-4 Final Distribution Date” has the
meaning set forth in the Sale and Servicing Agreement.

 

“Class A-4
Notes” means the Class A-4 Notes, substantially in the form of Exhibit A-4.

 

“Class A-4
Rate” has the meaning set forth in the Sale and Servicing Agreement.

 

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

 

“Class B
Notes” means the Class B Notes, substantially in the form of Exhibit A-5.

 

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

 

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

 

“Class C
Notes” means the Class C Notes, substantially in the form of Exhibit A-6.

 

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

 

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

 

 

3

 

 

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

 

“Clearstream” means
Clearstream Banking, société anonyme,
and its successors in interest.

 

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

 

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

 

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

 

“Commission” means the Securities and Exchange Commission.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Euroclear” means
Euroclear Bank S.A./N.V., as operator of the Euroclear System, or any successor
thereto in such capacity.

 

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

 

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

 

“Exchange Date” shall have the meaning specified in Section 2.09.

 

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

 

“Floating Rate Notes” has the meaning set forth
in the Sale and Servicing Agreement.

 

 

4

 

 

“Global Note” means either a Rule 144A Global Note or
a Regulation S Global Note, as the case may be.

 

“Grant” means
mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
assign, transfer, create and grant a lien upon and a security interest in and
right of set-off against, deposit, set over and confirm pursuant to this
Indenture.  A Grant of the Collateral or
of any other agreement or instrument shall include all rights, powers and
options (but none of the obligations) of the granting party thereunder,
including the immediate and continuing right to claim for, collect, receive and
give receipt for principal and interest payments in respect of the Collateral
and all other moneys payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and
options, to bring Proceedings in the name of the granting party or otherwise
and generally to do and receive anything that the granting party is or may be
entitled to do or receive thereunder or with respect thereto.

 

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

 

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

 

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

 

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

 

“Indenture Securities” means the Notes.

 

“Indenture Security Holder” means a Noteholder.

 

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

 

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

 

 

5

 

indirect financial interest in the Issuer, any such other obligor, the
Seller or any of their respective Affiliates, and (iii) is not connected
with the Issuer, any such other obligor, the Seller or any Affiliate of any of
the foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

 

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

 

“Interest
Rate” means the Class A-1 Rate, the Class A-2 Rate, the Class A-3a
Rate, the Class A-3b Rate, the Class A-4 Rate, the Class B Rate
and/or the Class C Rate, as applicable.

 

“Issuer” means
Harley-Davidson Motorcycle Trust 2008-1 until a successor replaces it and,
thereafter, means the successor and, for purposes of any provision contained
herein and required by the TIA, each other obligor on the Notes.

 

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

 

“Non-Offered Note” means, as the context requires, a Class B
Note or a Class C Note.

 

“Note” means, as the context requires, a Class A-1
Note, a Class A-2 Note, a Class A-3a Note, a Class A-3b Note, a Class A-4
Note, a Class B Note or a Class C Note.

 

“Note
Depository Agreement” means one or more agreements dated as of the
Closing Date, between the Issuer and DTC, as the initial Clearing Agency,
relating to the Notes, substantially in the form of Exhibit C
hereto.

 

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

 

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

 

“Opinion
of Counsel” means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be employees of
or counsel to the Issuer and who shall be satisfactory to the Indenture Trustee
and which shall comply with any applicable requirements of Section 11.01,
and shall be in form and substance satisfactory to the Indenture Trustee.

 

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

 

 

6

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

mutilated, lost, destroyed or stolen Note shall be deemed to evidence
the same debt as the mutilated, lost, destroyed or stolen Note.

 

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

 

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

 

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

 

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

 

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

 

“Redemption
Date” means, in the case of a redemption of the Notes pursuant to Section 10.01(a) or
a payment to Noteholders pursuant to Section 10.01(b), the Distribution
Date specified by the Servicer or the Issuer pursuant to Section 10.01(a) or
10.01(b), as the case may be.

 

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

 

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

 

“Regulation
S” means Regulation S under the Securities Act.

 

“Regulation
S Global Legend” shall have the meaning specified in Section 2.15(b).

 

“Regulation
S Global Note” shall have the meaning specified in Section 2.09.

 

“Regulation
S Legend” shall have the meaning specified in Section 2.15(b).

 

“Regulation
S Transfer Certificate” shall have the meaning specified in Section 2.04.

 

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

 

“Restrictive
Legend” shall have the meaning specified in Section 2.15(a).

 

“Rule 144A” means Rule 144A
under the Securities Act.

 

8

 

“Rule 144A
Global Note” shall have the meaning specified in Section 2.09.

 

“Rule 144A
Transfer Certificate” shall have the meaning specified in Section 2.04.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Transfer
Certificate” shall have the meaning specified in Section 2.04.

 

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

 

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

 

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

 

“United States” means the United States of America.

 

“US Person” shall have the meaning set forth in Regulation S.

 

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

 

“Commission” means the Securities and Exchange Commission.

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Noteholder.

 

9

 

“indenture to be qualified” means this Indenture.

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)          “or” is not
exclusive;

 

(iv)          “including”
means including without limitation;

 

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

 

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

 

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

 

ARTICLE
TWO

THE NOTES

 

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

 

10

 

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

 

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

 

The
Indenture Trustee shall, upon receipt of an Issuer Order, authenticate and
deliver the Notes for original issue in the Classes and aggregate principal
amounts as set forth below:

 

	
  Class

  	
   

  	
  Aggregate Principal Amount

  	
   

  
	
  Class A-1

  	
   

  	
  $

  	
  93,000,000

  	
   

  
	
  Class A-2

  	
   

  	
  $

  	
  197,000,000

  	
   

  
	
  Class A-3a

  	
   

  	
  $

  	
  55,000,000

  	
   

  
	
  Class A-3b

  	
   

  	
  $

  	
  70,000,000

  	
   

  
	
  Class A-4

  	
   

  	
  $

  	
  71,000,000

  	
   

  
	
  Class B

  	
   

  	
  $

  	
  37,800,000

  	
   

  
	
  Class C

  	
   

  	
  $

  	
  16,200,000

  	
   

  

 

The
aggregate principal amount of such Classes of Notes Outstanding at any time may
not exceed such respective amounts, except as otherwise provided in Section 2.05.

 

Each
Note shall be dated the date of its authentication.  The Notes shall be issuable as registered
Notes in the minimum denomination of $100,000 and in integral multiples of
$1,000 in excess thereof.

 

No
Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose, unless there appears on such Note a certificate of
authentication substantially in the form provided for herein by the Indenture
Trustee by the manual signature of one of its authorized signatories, and such
certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder.

 

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

 

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

 

11

 

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

 

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

 

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

 

At
the option of the Holder, Notes may be exchanged for other Notes of the same Class in
any authorized denominations, of a like aggregate principal amount, upon
surrender of the Notes to be exchanged at such office or agency.  Whenever any Notes are so surrendered for
exchange, the Issuer shall execute, and the Indenture Trustee shall
authenticate and the Noteholder shall obtain from the Indenture Trustee, the
Notes which the Noteholder making the exchange is entitled to receive.

 

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

 

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

 

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

 

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

 

12

 

transfer with respect to which the representation in clause (i) or
(ii) above is not true shall be void ab
initio.

 

Each
purchaser (including any transferee) of a Non-Offered Note (other than the
Trust Depositor or an Affiliate thereof) must satisfy the transfer restrictions
as set forth herein and in the applicable transfer certificate attached hereto
as Exhibit D (the “Regulation S Transfer Certificate”) and Exhibit E (the “Rule 144A
Transfer Certificate” and, together with the Regulation S Transfer
Certificate, the “Transfer Certificates”) and, in the case of such a purchaser
taking delivery in the form of an interest in a Rule 144A Global Note or a
Regulation S Global Note, as the case may be, by its acceptance of a beneficial
interest in the Notes, shall be deemed to have made the representations and
warranties set forth in the applicable Transfer Certificate.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)           Each Class of Notes shall accrue
interest at the related Interest Rate, and such interest shall be payable on
each Distribution Date as specified therein, subject to Section 3.01.  Any installment of interest or principal, if
any, payable on any Note which is punctually paid or duly 

 

14

 

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

 

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

 

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

 

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

 

Section 2.09.        Book-Entry
Notes.

 

(a)           The Notes, upon original issuance,
will be issued in the form of a typewritten Note or Notes representing the
Book-Entry Notes, to be delivered to DTC, the initial Depository, by, or on
behalf of, the Issuer.  Such Notes shall
initially be registered on the Note Register in the name of Cede &
Co., the nominee of the initial Clearing Agency, and no Noteholder will receive
a Definitive 

 

15

 

Note representing such
Noteholder’s interest in such Note, except as provided in Section 2.11.  Unless and until definitive, fully registered
Notes (the “Definitive Notes”) have been issued to Noteholders pursuant to Section 2.11:

 

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

 

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

 

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

 

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

 

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

 

(b)           The Non-Offered Notes issued to the
Trust Depositor will be represented by one or more permanent global notes in
definitive, fully registered form without interest coupons (each, a “Rule 144A
Global Note”).  Each Rule 144A
Global Note shall be deposited with the Indenture Trustee, as custodian for
DTC, and shall be registered in the name of DTC or its nominee.  The aggregate principal amount of a Rule 144A
Global Note may from time to time be increased or decreased by adjustments made
on the records of the Indenture Trustee (as custodian for DTC), DTC, or its
nominee, as herein provided, which adjustments shall be conclusive as to the
Outstanding Amount of such Rule 144A Global Note.

 

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

 

Section 2.11.        Definitive
Notes.  If (i)(A) the
Administrator advises the Indenture Trustee in writing that the Clearing Agency
is no longer willing or able to properly discharge its responsibilities as
described in the applicable Note Depository Agreement, and (B) Indenture
Trustee or the Administrator is unable to locate a qualified successor, (ii) the
Administrator or the Owner Trustee, as applicable, notifies the Clearing Agency
of its intent to terminate the book-entry system through the Clearing Agency
and requests a withdrawal of the Book-Entry Notes held by the Clearing Agency,
and after receipt by the Clearing Agency Participants of an important notice
issued 

 

16

 

by the Clearing Agency notifying
the Clearing Agency Participants of such withdrawal request, the Clearing
Agency Participants holding beneficial interests in the Book-Entry Notes agree
to initiate such termination, or (iii) after the occurrence of an Event of
Default, the Modified Required Holders advise the Indenture Trustee and the
Clearing Agency through the Clearing Agency Participants in writing that the
continuation of a book-entry system through the Clearing Agency is no longer in
the best interests of the related Noteholders, then the Indenture Trustee shall
notify all Noteholders of the related Class or Classes of Notes, through
the Clearing Agency, of the occurrence of any such event and of the
availability of Definitive Notes of the related Class of Notes to
Noteholders requesting the same.  Upon
surrender to the Indenture Trustee of the Note or Notes representing the
Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency.  None of the Issuer, the
Note Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. 
Upon the issuance of Definitive Notes of a Class, the Indenture Trustee
shall recognize the Noteholders of the Definitive Notes as Noteholders
hereunder.

 

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

 

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

 

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

 

Section 2.14.        Transfer Provisions; Enforcement of Transfer Restrictions.

 

(a)           Until
the Issuer (or the Administrator on behalf of the Issuer) and the Indenture
Trustee determine that other procedures are appropriate and consistent with applicable law, the Non-Offered Notes may be sold, pledged,
or otherwise transferred subject to compliance with the applicable legends set forth on the Non-Offered Notes as
follows:

 

(i)          Rule 144A
Global Note to Rule 144A Global Note.  All or a portion of an interest in a Rule 144A
Global Note may be transferred to an Affiliate of the Trust Depositor or to a
Person taking delivery in the form of an interest in a Rule 144A Global
Note that is a QIB, purchasing for its own account or for the account of one or
more Persons each of which is a QIB, in accordance with the applicable
procedures of DTC (in addition to those under this Indenture), and only in a
denomination greater than or equal to the required minimum denomination for
each account; provided that any remaining
principal amount of the transferor’s interest in the Rule 144A Global Note
will either equal zero or meet the required minimum denomination, provided, further, that the transferee by purchase of such
interest shall be deemed to have made all acknowledgements, 

 

17

 

representations and warranties applicable to such
transfer or purchase of an interest in a Rule 144A Global Note as set
forth in the Rule 144A Transfer Certificate.

 

(ii)           Rule 144A Global Note
to Regulation S Global Note.  All or a portion of an interest in a Rule 144A
Global Note may be transferred to non-U.S. Persons in offshore
transactions in reliance on Regulation S under the Securities Act represented
by one or more global notes in definitive, fully registered form without
interest coupons (each, a “Regulation S Global Note”)
or exchanged for an interest in a Regulation S Global Note only in accordance
with the applicable procedures of the Depository and, as applicable, Clearstream
or Euroclear (in addition to those under this Indenture) and subject to the
receipt by the Indenture Trustee of a Regulation S Transfer Certificate from
the transferee (in the case of a transfer) or the holder (in the case of an
exchange) to the effect that, among other things, the transfer or exchange is
being made to a Person that is not a U.S. Person, purchasing for its own
account or one or more accounts with respect to which it exercises complete
investment discretion, each of which is not a U.S. Person, in an offshore
transaction in accordance with Regulation S and only in a denomination greater
than or equal to the required minimum denomination for each account; provided that any remaining principal amount of the interest
of the transferor or the holder making the exchange in the Rule 144A
Global Note will either equal zero or meet the required minimum denomination.
Any interest in a Rule 144A Global Note that is transferred to a Person
taking delivery in the form of an interest in a Regulation S Global Note shall,
upon transfer, cease to be an interest in such Rule 144A Global Note and
become an interest in the Regulation S Global Note and, accordingly, will
thereafter be subject to all transfer restrictions and other procedures
applicable to interests in a Regulation S Global Note for as long as it remains
such an interest.

 

Each Regulation S Global Note initially shall be issued,
and until the Exchange Date (as defined below) shall remain, in the form of a
temporary Regulation S Global Note, which shall be deposited with the Indenture
Trustee, as custodian for DTC, and registered in the name of DTC or its nominee
for the respective accounts of Euroclear or Clearstream, as the case may
be.  On and after the first Business Day
following the 40th day after the later of the Closing Date and
the commencement of the offering of the Notes (the “Exchange Date”), beneficial interests
in a temporary Regulation S Global Note will be exchangeable for interests in
one or more permanent Regulation S Global Notes upon written certification from
DTC, together with copies of certificates substantially in the form of Exhibit F
from Euroclear and Clearstream, certifying that they have received written
certification substantially in the form of Exhibit G that the beneficial
interests in 100% of the Outstanding Amount of such temporary Regulation S
Global Note (except to the extent of any Noteholders who will take delivery of
beneficial interests in a Rule 144A Global Note, as contemplated by Section 2.14(a)(iv))
are owned by Persons who are not U.S. Persons. 
Each permanent Regulation S Global Note shall be deposited with the
Indenture Trustee, as custodian for DTC, and registered in the name of DTC or
its nominee for the respective accounts of Euroclear and Clearstream, as the
case may be.  Simultaneously with the authentication of the permanent Regulation S
Global Notes, the Indenture Trustee shall cancel the temporary Regulation S
Global Notes.  The Outstanding
Amount of a temporary or permanent Regulation S Global Note may from time to
time be increased or decreased by adjustments made on the Note Register and the
records of the Indenture Trustee (as custodian for DTC) and DTC, or its
nominee, as herein provided, which adjustments shall be conclusive as to the
Outstanding Amount of such Regulation S Global Note.

 

(iii)          Regulation S Global Note to
Regulation S Global Note.  All or a portion of an interest in a
Regulation S Global Note may be transferred to a Person that is not a U.S.
Person taking delivery in the form of an interest in a Regulation S Global Note
in accordance with the applicable procedures of the Depository and, as
applicable, Clearstream or Euroclear (in addition to those under this
Indenture) in an offshore transaction in accordance with Regulation S, and only
in a 

 

18

 

denomination greater than or equal to the required
minimum denomination for each account; provided  that any remaining principal amount of the
transferor’s interest in the Regulation S Global Note will either equal zero or
meet the required minimum denomination. Interests in a Regulation S Global Note
may be held only through Euroclear or Clearstream and may not be held by a U.S.
Person at any time, provided, further,
that the transferee or purchaser of such interest shall be deemed to have made
all acknowledgements, representations and warranties applicable to such
transfer or purchase of an interest in a Regulation S Global Note as set forth
in the Regulation S Transfer Certificate.

 

(iv)          Regulation S Global Note to Rule 144A
Global Note.  All or a portion of an interest in a
Regulation S Global Note may be transferred to a Person taking delivery in the
form of an interest in a Rule 144A Global Note or exchanged for an
interest in a Rule 144A Global Note only in accordance with the applicable
procedures of the Depository and, as applicable, Clearstream or Euroclear (in
addition to those under this Indenture) and subject to the receipt by the
Indenture Trustee of a Rule 144A Transfer Certificate from the transferee
(in the case of a transfer) or the holder (in the case of an exchange) to the
effect that, among other things, the transfer or exchange is to a Person that
is a QIB, purchasing for its own account or one or more accounts with respect
to which it exercises complete investment discretion, each of which is a QIB,
and only in a denomination greater than or equal to the required minimum
denomination for each account; provided that
any remaining principal amount of the interest of the transferor or the holder
making the exchange in the Regulation S Global Note will either equal zero or
meet the required minimum denomination. 
Any interest in a Regulation S Global Note that is transferred to a
Person taking delivery in the form of an interest in a Rule 144A Global
Note shall, upon transfer, cease to be an interest in such Regulation S Global
Note and become an interest in the Rule 144A Global Note and, accordingly,
will thereafter be subject to all transfer restrictions and other procedures applicable
to interests in a Rule 144A Global Note for as long as it remains such an
interest.

 

In connection with any transfers under this Section 2.14(a),
transferee and transferor of such notes shall furnish such other information as
the Indenture Trustee shall reasonably request.

 

If
the conditions to transfer set forth
in Section 2.14(a) are not fully satisfied or if the Note Registrar
receives written notice or a Responsible Officer of the Note Registrar
otherwise obtains actual knowledge that (i) a transfer or attempted or
purported transfer of any interest in any Non-Offered Note was consummated on
the basis of an incorrect form or certification from the transferor regarding
the transfer or purported transferee or (ii) the holder of any interest in
a Note is in breach of any deemed representation or agreement of such holder,
the Note Registrar will not register such attempted or purported transfer and
if a transfer has been registered, such transfer shall be absolutely null and void ab initio and shall vest no rights in
the purported transferee (such purported transferee, a “Disqualified Transferee”)
and the last preceding Noteholder of such Non-Offered Note that was not a
Disqualified Transferee shall be restored to all rights as a Noteholder thereof
retroactively to the date of transfer of such Non-Offered Note by such
Noteholder.  In furtherance of the
foregoing, the Indenture Trustee shall be entitled to force a transferee of
Non-Offered Notes or any related beneficial interest therein that acquired such
Non-Offered Notes or related beneficial interest therein in violation of the
provisions of this Indenture to sell such Non-Offered Notes or related
beneficial interest therein to a person that satisfies the requirements of this
Indenture at the then-current market price therefor, and if the transferee does
not comply with such demand within 30 days thereof, the Indenture Trustee may
sell or cause such transferee to sell such Non-Offered Notes or related
beneficial interest therein to a permitted transferee under this Indenture on
such terms as the Indenture Trustee may choose. 
Nothing herein shall be deemed to imply for the Indenture Trustee and
the Note Registrar any duty of investigation or monitoring subsequent to the
date of any transfer.

 

19

 

No payments will be made on the Notes from the date
notice of the sale requirement is sent to the date on which the interest is
sold.

 

For the avoidance of doubt, the Issuer (or the
Administrator on its behalf) may determine that the transfer restrictions in
this Section 2.14 shall no longer be applicable with respect to the
Non-Offered Notes upon delivery of written notice to the Indenture Trustee.

 

Section 2.15.        Legends on Notes.

 

(a)           Restrictive Legend.  Each Non-Offered Note shall, unless the
Issuer (or the Administrator on its behalf) determines otherwise in compliance
with applicable law, bear on its face a legend (the “Restrictive Legend”) in substantially
the following form:

 

“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER RELEVANT JURISDICTION AND MAY BE
RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED (A)(1) TO A PERSON WHO IS A
“QUALIFIED INSTITUTIONAL BUYER” (A “QIB”) WITHIN THE MEANING OF RULE 144A UNDER
THE SECURITIES ACT (“RULE 144A”), PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE
ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES COMPLETE INVESTMENT DISCRETION,
EACH OF WHICH IS A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QIB, (2) OUTSIDE
THE UNITED STATES TO CERTAIN PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”)) PURCHASING FOR ITS OWN
ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES COMPLETE
INVESTMENT DISCRETION, EACH OF WHICH IS NOT A U.S. PERSON, IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF
REGULATION S, IN EACH CASE IN A PRINCIPAL AMOUNT OF NOT LESS THAN U.S.$100,000
AND INTEGRAL MULTIPLES OF U.S.$1,000 IN EXCESS THEREOF FOR THE PURCHASER AND
FOR EACH ACCOUNT FOR WHICH  IT IS ACTING
OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, (B) IN
COMPLIANCE WITH THE CERTIFICATION AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE
REFERRED TO HEREIN AND (C) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER RELEVANT
JURISDICTION.  EACH PURCHASER OR
TRANSFEREE OF THIS NOTE WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS
SET FORTH IN THE INDENTURE.

 

NO SALE OR TRANSFER OF THIS NOTE MAY BE
MADE TO A PURCHASER WHO IS (A) ACTING ON BEHALF, OR USING ANY “PLAN
ASSETS,” OF AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF 

 

20

 

SECTION 3(3) OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN WITHIN THE
MEANING OF SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”), AN ENTITY WHICH IS DEEMED TO HOLD THE ASSETS OF ANY SUCH
PLAN PURSUANT TO 29 C.F.R. SECTION 2510.3-101 OR OTHERWISE UNDER ERISA,
WHICH PLAN OR ENTITY IS SUBJECT TO TITLE I OF ERISA OR SECTION 4975 OF THE
CODE, OR A GOVERNMENTAL OR CHURCH PLAN WHICH IS SUBJECT TO ANY FEDERAL, STATE,
OR LOCAL LAW (EACH, A “SIMILAR LAW’) THAT IS SIMILAR TO THE PROHIBITED
TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE
CODE (COLLECTIVELY, A “PLAN”) AND (B) ACQUIRING OR HOLDING SUCH NOTE IN A
MANNER THAT IS NOT ELIGIBLE FOR AN EXEMPTION GRANTED BY UNITED STATES
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, OR A SIMILAR EXEMPTION, OR, IN
THE CASE OF A PLAN SUBJECT TO SIMILAR LAW, THAT WOULD EITHER CONSTITUTE OR
RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION.

 

NO TRANSFER OF THIS NOTE (OR ANY INTEREST
HEREIN) MAY BE MADE (AND NEITHER THE INDENTURE TRUSTEE NOR THE NOTE
REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER) IF SUCH TRANSFER WOULD BE MADE TO A
PERSON THAT IS OTHERWISE UNABLE TO MAKE THE CERTIFICATIONS AND REPRESENTATIONS
DEEMED TO BE MADE BY SUCH PERSON IN THE INDENTURE REFERRED TO HEREIN.  ACCORDINGLY, TRANSFER OF THIS NOTE IS
RESTRICTED, AND AN INVESTOR IN THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC
RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD OF TIME OR UNTIL MATURITY.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING
WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO,
AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE
NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE
TRUSTEE OR ANY INTERMEDIARY.  EACH
TRANSFEROR OF THIS NOTE AGREES TO PROVIDE NOTICE OF THE TRANSFER RESTRICTIONS
SET FORTH HEREIN AND IN THE INDENTURE TO THE TRANSFEREE.  IN ADDITION TO THE FOREGOING, THE ISSUER
MAINTAINS THE RIGHT TO RESELL ANY INTEREST IN THIS NOTE PREVIOUSLY TRANSFERRED
TO AN IMPERMISSIBLE HOLDER IN ACCORDANCE WITH AND SUBJECT TO THE TERMS OF THE
INDENTURE.”

 

21

 

 

(b)           Regulation S Note Legends.  Each Non-Offered Note sold in accordance with
Regulation S shall, in addition to the Restrictive Legend and unless the
Issuer  (or the Administrator on its
behalf) determines otherwise in compliance with applicable law, bear on its
face a legend (the “Regulation S Legend”) in substantially the following form:

 

“AN INTEREST IN THIS NOTE MAY NOT BE
HELD BY A PERSON THAT IS A U.S. PERSON (AS DEFINED IN REGULATION S) AT ANY
TIME.”

 

Each
Regulation S Global Note shall, in addition to the Restrictive Legend and the
Regulation S Legend and unless the Issuer (or the Administrator on its behalf)
determines otherwise in compliance with applicable law, bear on its face a
legend (the “Regulation
S Global Legend”) in substantially the following form:

 

“THIS
REGULATION S GLOBAL NOTE IS A GLOBAL NOTE WHICH IS EXCHANGEABLE FOR INTERESTS
IN OTHER GLOBAL NOTES AND DEFINITIVE NOTES SUBJECT TO THE TERMS AND CONDITIONS
SET FORTH HEREIN AND IN THE INDENTURE. IN ADDITION, AN INTEREST IN THIS REGULATION
S GLOBAL NOTE MAY ONLY BE HELD THROUGH EUROCLEAR OR CLEARSTREAM AT ANY
TIME.”

 

Section 2.16.        Calculation
Agent.

 

(a)           The Issuer agrees that for so long as any of the Floating
Rate Notes are Outstanding there will at all times be an agent appointed to calculate
LIBOR in respect of each Interest Period (the “Calculation
Agent”).  The Issuer appoints
The Bank of New York Trust Company, N.A., as the initial Calculation Agent for
purposes of determining LIBOR for each Interest Period and The Bank of New York
Trust Company, N.A. accepts such appointment. 
On each Interest Determination Date, the Calculation Agent will
calculate the interest rate with respect to the Floating Rate Notes.  All determinations of interest by the
Calculation Agent shall, in the absence of manifest error, be conclusive for
all purposes and binding on the Noteholders.

 

(b)           The Calculation Agent may be removed
by the Issuer at any time.  If the
Calculation Agent is unable or unwilling to act as such or is removed by the
Issuer, the Issuer will promptly appoint as a replacement Calculation Agent a
leading bank which is engaged in transactions in Eurodollar deposits in the
international Eurodollar market and which does not control or is not controlled
by or under common control with the Issuer or its Affiliates.  The Calculation Agent may not resign its
duties without a successor having been duly appointed; provided,
however,  that upon the
appointment of a successor Indenture Trustee pursuant to Section 6.09, The
Bank of New York Trust Company, N.A., as initial Calculation Agent, may
immediately resign and such successor Indenture Trustee shall automatically
become the Calculation Agent under this Indenture.

 

(c)           The Calculation Agent shall be
entitled to the same rights, protections, indemnities and immunities as the
Indenture Trustee, as set forth in Article VI of this Indenture.

 

ARTICLE THREE

COVENANTS

 

Section 3.01.        Payment
of Principal and Interest.  The Issuer will duly and punctually pay the
principal of and interest, if any, on the Notes in accordance with the terms of
the Notes and this 

 

22

 

Indenture.  Without limiting the foregoing, subject to Section 8.02(c),
the Issuer and the Indenture Trustee will cause to be deposited into the Note
Distribution Account amounts allocated pursuant to Section 7.05 of the
Sale and Servicing Agreement, and cause to be distributed all such amounts on a
Distribution Date as deposited therein (i) for the benefit of the Class A-1
Notes, to the Class A-1 Noteholders, (ii) for the benefit of the Class A-2
Notes, to the Class A-2 Noteholders, (iii) for the benefit of the Class A-3
Notes, to the Class A-3 Noteholders, (iv) for the benefit of the Class A-4
Notes, to the Class A-4 Noteholders, (v) for the benefit of the Class B
Notes, to the Class B Noteholders, (vi) for the benefit of the Class C
Notes, to the Class C Noteholders, in each case as further specified
herein and (vii) for the benefit of and to the Swap Counterparty.  Amounts properly withheld under the Code by
any Person from a payment to any Noteholder of interest and/or principal shall
be considered as having been paid by the Issuer to such Noteholder for all
purposes of this Indenture.

 

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

 

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

 

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

 

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

 

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

 

23

 

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

 

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

 

(iv)          immediately resign as a Paying Agent
and forthwith pay to the Indenture Trustee all sums held by it in trust for the
payment of Notes or in respect of the Interest Rate Swap Agreement if at any
time it ceases to meet the standards required to be met by a Paying Agent at
the time of its appointment; and

 

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

 

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

 

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

 

Section 3.04.        Existence.  The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the United States,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business 

 

24

 

in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Collateral.

 

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

 

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

 

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

 

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

 

(iv)          enforce any of the Collateral;

 

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

 

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

 

The
Issuer shall file the financing statements on Form UCC1.  All financing statements filed or to be filed
against the Issuer in favor of the Indenture Trustee in connection herewith describing
the Collateral shall contain a statement to the following effect:  “A purchase of or security interest in any
collateral described in this financing statement, except as permitted in the
Indenture, will violate the rights of the Secured Party.”  The Issuer hereby authorizes the Indenture
Trustee to file all continuation statements or other instruments required to be
executed pursuant to this Section and hereby designates the Indenture
Trustee its agent and attorney-in-fact for such purpose; provided,
however, that the Indenture Trustee
shall have no obligation to monitor or file any financing statements,
continuation statements, financing statement amendments or any other
instrument.

 

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

 

25

 

Section 3.07.         Performance
of Obligations; Servicing of Contracts.

 

(a)           The Issuer will not take any action
and will use its best efforts not to permit any action to be taken by others
that would release any Person from any such Person’s material covenants or
obligations under any instrument or agreement included in the Collateral or
that would result in the amendment, hypothecation, subordination, termination
or discharge of, or impair the validity or effectiveness of, any such
instrument or agreement, except as expressly provided in the Transaction
Documents or such other instrument or agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)          except as may be expressly permitted
hereby, (A)  permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien created by this Indenture to be amended,
hypothecated, subordinated, terminated or discharged, or permit any Person to
be released from any covenant; or obligations with respect to the Notes under
this Indenture except as may be expressly permitted hereby, (B) permit any
lien, charge, excise, claim, security interest, mortgage or other encumbrance
(other than the lien of this Indenture) to be created on or extend to or
otherwise 

 

26

 

arise upon or burden the Collateral or any part thereof or any interest
therein or the proceeds thereof (other than tax liens, mechanics’ liens and
other liens that arise by operation of law, in each case on a Motorcycle and
arising solely as a result of an action or omission of the related Obligor), (C) permit
the lien created by this Indenture not to constitute a valid first priority
(other than with respect to any such tax, mechanics’ or other lien) security
interest in the Collateral, or (D) amend, modify or fail to comply with
the provisions of the Transaction Documents without the prior written consent
of the Indenture Trustee, except where the Transaction Documents allow for
amendment or modification without the consent or approval of the Indenture
Trustee;

 

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

 

(v)           change its name or state of
formation.

 

Section 3.09.         Annual
Statement as to Compliance.  The Issuer will deliver to the Indenture
Trustee and the Swap Counterparty, on or before March 31 of each year
commencing March 31, 2009, an Officer’s Certificate stating, as to the
Authorized Officer signing such Officer’s Certificate, that:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

27

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

28

 

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

 

Section 3.11.         Successor
or Transferee.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 3.17.         Restricted
Payments. 
Except as permitted by the Transaction Documents, the Issuer shall not,
directly or indirectly, (i) pay any dividend or make any distribution (by
reduction of capital or otherwise), whether in cash, property, securities or a
combination thereof, to the Owner Trustee or any owner of a beneficial interest
in the Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer or to the Servicer, (ii) redeem, purchase,
retire or otherwise acquire for value any such ownership or equity interest or
security or (iii) set aside or otherwise segregate any amounts for any
such purpose; provided, however,
that the Issuer may make, or cause to be made, (A) distributions to the
Servicer, the Owner Trustee and the Certificateholder as 

 

29

 

contemplated by, and to the extent
funds are available for such purpose under, the Sale and Servicing Agreement or
the Trust Agreement and (B) payments to the Indenture Trustee and the
Owner Trustee pursuant to Section 1(a)(ii) of the Administration
Agreement.  The Issuer will not, directly
or indirectly, make payments to or distributions from the Collection Account
except in accordance with this Indenture and the other Transaction Documents.

 

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

 

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

 

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

 

Section 3.21.        Amendments
of Sale and Servicing Agreement and Trust Agreement.  The Issuer shall not agree to any amendment
to Section 11.01 of the Trust Agreement to eliminate the requirements
thereunder that the Indenture Trustee or the Holders of the Notes consent to
amendments thereto as provided therein.

 

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

 

ARTICLE
FOUR

 

SATISFACTION
AND DISCHARGE

 

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

 

(A)         either

 

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

 

30

 

repaid to the Issuer or
discharged from such trust, as provided in Section 3.03) have been
delivered to the Indenture Trustee for cancellation;

 

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

 

(i)            have become due and payable, or

 

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

 

(iii)          are to be called for redemption within one year under
arrangements satisfactory to the Indenture Trustee for the giving of notice of
redemption by the Indenture Trustee in the name, and at the expense, of the
Issuer, and the Issuer, in the case of (i), (ii) or (iii) above, has
irrevocably deposited or caused to be irrevocably deposited with the Indenture
Trustee cash or direct obligations of or obligations guaranteed by the United
States (which will mature prior to the date such amounts are payable), in trust
in an Eligible Account for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Note not theretofore delivered to the
Indenture Trustee for cancellation when due to the final scheduled Distribution
Date (if Notes shall have been called for redemption pursuant to Section 10.01(a)),
as the case may be;

 

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

 

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

 

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

 

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

 

31

 

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

 

 

ARTICLE FIVE

REMEDIES

 

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

 

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

 

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

 

(iii)          default in the observance or
performance of any covenant or agreement of the Issuer made in this Indenture
(other than a covenant or agreement, a default in the observance or performance
of which is elsewhere in this Section specifically dealt with) which
default has a material adverse effect on the Noteholders, or any representation
or warranty of the Issuer made in this Indenture or in any certificate or other
writing delivered pursuant hereto or in connection herewith proving to have
been incorrect in any material respect as of the time when the same shall have
been made, and such default shall continue or not be cured, or the circumstance
or condition in respect of which such misrepresentation or warranty was
incorrect shall not have been eliminated or otherwise cured, for a period of 30
days after there shall have been given, by registered or certified mail, to the
Issuer by the Indenture Trustee or by the Holders of at least 25% of the
Outstanding Amount of the Controlling Class a written notice specifying
such default or incorrect representation or warranty and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder;

 

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

 

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

 

32

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)           Notwithstanding anything to the
contrary contained in this Indenture, if an Event of Default shall have
occurred and be continuing and if the Issuer fails to perform its obligations
under Section 10.01(b) when and as due, the Indenture Trustee may in
its discretion proceed to protect and enforce its rights and the rights of the
Noteholders and the Swap Counterparty by such appropriate Proceedings as the
Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for specific performance of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable 

 

33

 

right vested in the
Indenture Trustee by this Indenture or by law, provided that the Indenture
Trustee shall only be entitled to take any such actions to the extent such
actions (i) are taken only to enforce the Issuer’s obligations to redeem
the principal amount of Notes, and (ii) are taken only against the
Collateral any investments therein and any proceeds thereof.

 

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

 

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

 

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

 

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

 

(iv)          to file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Indenture
Trustee or the Holders of Notes allowed in any judicial proceedings relative to
the Issuer, its creditors and its property;

 

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

 

(f)            Nothing herein contained shall be
deemed to authorize the Indenture Trustee to authorize or consent to or vote
for or accept or adopt on behalf of any Noteholder or the Swap Counterparty any
plan of reorganization, arrangement, adjustment or composition affecting the
Notes 

 

34

 

or the rights of any Holder
thereof or to authorize the Indenture Trustee to vote in respect of the claim
of any Noteholder or the Swap Counterparty in any such proceeding except, as
aforesaid, to vote for the election of a trustee in bankruptcy or similar
Person.

 

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

 

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

 

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

 

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

 

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

 

(iii)          exercise any remedies of a secured
party under the UCC and any other remedy available to the Indenture Trustee and
take any other appropriate action to protect and enforce the rights and
remedies of the Indenture Trustee on behalf of the Noteholders and the Swap
Counterparty under this Indenture or the Notes; and

 

(iv)          sell the Collateral or any portion
thereof or rights or interest therein, at one or more public or private sales
called and conducted in any manner permitted by law; provided,
however, that the Indenture Trustee may
not sell or otherwise liquidate the Collateral following an Event of Default,
unless (A) the Holders of 100% of the Outstanding Amount of the Notes,
consent thereto, (B) the proceeds of such sale or liquidation
distributable to the Noteholders and the Swap Counterparty are sufficient to
discharge in full all amounts then due and unpaid upon such Notes for principal
and interest and all payments due in respect of the Interest Rate Swap
Agreement or (C) there has been an Event of Default described in Section 5.01(i) or
(ii) and the Indenture Trustee determines that the Collateral will not
continue to provide sufficient funds for the payment of principal of and
interest on the Notes and all amounts due to the Swap Counterparty under the
Interest Rate Swap Agreement as they would have become due if the Notes had not
been declared due and payable, and the Indenture Trustee provides prior written
notice to each Rating Agency and obtains the consent of the Required
Holders.  In determining such sufficiency
or insufficiency with respect to clauses (B) and (C), the Indenture
Trustee may, but need not, obtain and rely upon an 

 

35

 

opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such purpose.

 

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

 

Section 5.06.        Priorities.

 

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

 

(b)           The Indenture Trustee may fix a
record date and payment date for any payment to Noteholders pursuant to this
Section.  At least 15 days before such
record date, the Issuer shall mail to each Noteholder and the Indenture Trustee
a notice that states the record date, the payment date and the amount to be
paid.

 

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

 

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

 

(ii)           the Holders of not
less than 25% of the Outstanding Amount of the Controlling Class have made
written request to the Indenture Trustee to institute such Proceeding in
respect of such Event of Default in its own name as Indenture Trustee
hereunder;

 

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

 

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

 

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

 

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

 

36

 

                In the event the
Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes of the Controlling Class,
each representing less than a majority of the Outstanding Amount of the
Controlling Class, the Indenture Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of
this Indenture.

 

Section 5.08.        Unconditional Rights of Noteholders to
Receive Principal and Interest.  Notwithstanding any other provisions in this
Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest on such Note
on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and
to institute suit for the enforcement of any such payment, and such right shall
not be impaired without the consent of such Holder.

 

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

 

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

 

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

 

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

 

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

 

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

 

37

 

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

 

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

 

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

 

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

 

Section 5.14.        Undertaking for Costs.  All parties to this Indenture agree, and each
Holder of any Note by such Holder’s acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (i) any suit instituted
by the Indenture Trustee, (ii) any suit instituted by any Noteholder, or
group of Noteholders, in each case holding in the aggregate more than 10% of
the Outstanding Amount of the Controlling Class or (iii) any suit
instituted by any Noteholder for the enforcement of the payment of principal of
or interest on any Note on or after the respective due dates expressed in such
Note and in this Indenture (or, in the case of redemption, on or after the
Redemption Date).

 

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

 

Section 5.16.        Action on Notes.  The Indenture Trustee’s right to seek and
recover judgment on the Notes or the Interest Rate Swap Agreement under this
Indenture shall not be affected by the seeking, obtaining or application of any
other relief under or with respect to this Indenture.  Neither the lien of this Indenture nor any
rights or remedies of the Indenture Trustee, the Noteholders or the Swap
Counterparty shall be impaired by the recovery of any judgment by the Indenture
Trustee against the Issuer or by the levy of any execution under such judgment
upon any portion of the Collateral or upon any of the assets of the
Issuer.  Any money or property collected
by the Indenture Trustee shall be applied in accordance with Section 5.06.

 

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Section 5.17.        Performance and Enforcement of Certain
Obligations.

 

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

 

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

 

 

ARTICLE
SIX

 

THE
INDENTURE TRUSTEE

 

Section 6.01.        Duties of Indenture Trustee.

 

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

 

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

 

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

 

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

 

39

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)           The Indenture Trustee shall have no
discretionary duties other than performing those ministerial acts set forth
above necessary to accomplish the purpose of this Trust as set forth in this
Indenture.

 

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

 

Section 6.02.        Rights of Indenture Trustee.

 

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

 

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

 

(c)           The Indenture Trustee may execute any
of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through Affiliates, agents or attorneys or a custodian or
nominee, and the Indenture Trustee shall not be responsible for any misconduct
or negligence on the 

 

40

 

part of, or for the
supervision of, any such agent, attorney, custodian or nominee appointed with
due care by it hereunder.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

41

 

committee of its Responsible
Officers in good faith determines that withholding the notice is in the
interests of Noteholders and the Swap Counterparty, as applicable.

 

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

 

Section 6.07.        Compensation and Indemnity.  The Issuer shall pay or shall cause the
Administrator to pay to the Indenture Trustee from time to time reasonable
compensation for its services.  The
Indenture Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Issuer shall or shall cause the Administrator to reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services.  Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee’s agents, counsel, accountants and experts.  The Issuer shall indemnify or shall cause the
Administrator to indemnify the Indenture Trustee against any and all loss,
liability or expense (including attorneys’ fees) incurred by it in connection
with the administration of this trust and the performance of its duties
hereunder.  The Indenture Trustee shall
notify the Issuer and the Administrator promptly of any claim for which it may
seek indemnity.  Failure by the Indenture
Trustee to so notify the Issuer and the Administrator shall not relieve the
Issuer or the Administrator of its obligations hereunder.  The Issuer shall defend or shall cause the
Administrator to defend any such claim, and the Indenture Trustee may have
separate counsel and the Issuer shall pay or shall cause the Administrator to
pay the fees and expenses of such counsel. 
Neither the Issuer nor the Administrator need reimburse any expense or
indemnify against any loss, liability or expense incurred by the Indenture
Trustee through the Indenture Trustee’s own willful misconduct, negligence or
bad faith.

 

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

 

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

 

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

 

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

 

42

 

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

 

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

 

If
the Indenture Trustee resigns or is removed, the Issuer shall promptly appoint
a successor Indenture Trustee.  A
successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, the Swap Counterparty and to the
Issuer.  Thereupon the resignation or
removal of the retiring Indenture Trustee shall become effective, and the
successor Indenture Trustee shall have all the rights, powers and duties of the
Indenture Trustee under this Indenture. 
The Issuer or the successor Indenture Trustee shall mail a notice of its
succession to Noteholders and the Swap Counterparty.  The retiring Indenture Trustee shall promptly
transfer all property held by it as Indenture Trustee to the successor
Indenture Trustee.

 

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

 

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

 

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

 

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

 

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

 

43

 

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

 

(a)                                  Notwithstanding
any other provision of this Indenture, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which any part of the Collateral
may at the time be located, the Indenture Trustee and the Administrator acting
jointly shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-Indenture Trustee or co-Indenture
Trustees, jointly with the Indenture Trustee, or separate Indenture Trustee or
separate Indenture Trustees, of all or any part of the Trust, and to vest in
such Person or Persons, in such capacity and for the benefit of the
Noteholders, such title to the Collateral, or any part hereof, and, subject to
the other provisions of this Section, such powers, duties, obligations, rights
and trusts as the Indenture Trustee and the Administrator may consider
necessary or desirable.  If the
Administrator shall not have joined in such appointment within 15 days after
the receipt by it of a request so to do, the Indenture Trustee alone shall have
the power to make such appointment.  No
co-Indenture Trustee or separate Indenture Trustee hereunder shall be required
to meet the terms of eligibility of a successor Indenture Trustee under Section 6.11
and no notice to Noteholders or the Swap Counterparty of the appointment of any
co-Indenture Trustee or separate Indenture Trustee shall be required under Section 6.08.

 

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

 

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

 

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

 

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

 

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

 

44

 

(d)                                 Any separate
Indenture Trustee or co-Indenture Trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect
of this Indenture on its behalf and in its name.  If any separate Indenture Trustee or
co-Indenture Trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall vest
in and be exercised by the Indenture Trustee, to the extent permitted by law,
without the appointment of a new or successor Indenture Trustee.  Notwithstanding anything to the contrary in
this Indenture, the appointment of any separate Indenture Trustee or
co-Indenture Trustee shall not relieve the Indenture Trustee of its obligations
and duties under this Indenture.

 

Section 6.11.                         Eligibility.

 

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

 

(b)                                 If a Default
occurs and is continuing and the Indenture Trustee is deemed to have a “conflicting
interest” (as defined in the TIA) as a result of acting as trustee for the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes, the Class B Notes and the Class C Notes, the Issuer shall
appoint a successor Indenture Trustee for the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes, a successor
Indenture Trustee for the Class B Notes and a successor Indenture Trustee
for the Class C Notes so that there will be separate Indenture Trustees
for the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, for the Class B Notes and for the Class C
Notes.  No such event shall alter the
voting rights of the Noteholders under this Indenture or under any of the other
Transaction Documents.

 

(c)                                  In the case of
an appointment hereunder of a successor Indenture Trustee with respect to any Class of
Notes, the Issuer, the retiring Indenture Trustee and the successor Indenture
Trustee with respect to such Class of Notes shall execute and deliver an
indenture supplement hereto wherein the successor Indenture Trustee shall
accept such appointment and which (i) shall contain such provisions as
shall be necessary or desirable to transfer and confirm to, and to vest in, the
successor Indenture Trustee all rights, powers, trusts and duties of the
retiring Indenture Trustee with respect to the Notes of such Class as to
which the appointment of such Indenture Trustee relates, (ii) if the
retiring Indenture Trustee is not retiring with respect to all Classes of
Notes, shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the retiring
Indenture Trustee with respect to the Notes of each Class as to which the
retiring Indenture Trustee is not retiring shall continue to be vested in the
retiring Indenture Trustee and (iii) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Indenture Trustee,
it being understood that nothing herein or in such supplemental indenture shall
constitute such Indenture Trustees co-trustees of the same trust and that each
such Indenture Trustee; and upon execution and delivery of such supplemental
indenture the resignation or removal of the retiring Indenture Trustee shall become
effective to the extent provided therein.

 

45

 

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

 

Section 6.12.                         Pennsylvania Motor Vehicle
Sales Finance Act Licenses.  The Indenture Trustee shall use its best
efforts to maintain the effectiveness of all licenses required under the
Pennsylvania Motor Vehicle Sales Finance Act in connection with this Indenture
and the transactions contemplated hereby until the lien and security interest
of this Indenture shall no longer be in effect in accordance with the terms
hereof.

 

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

 

Section 6.14.                         Representations and Warranties of Indenture Trustee.  The Indenture Trustee hereby represents and warrants to the Issuer as
follows:

 

(a)                                  Organization. It has been
duly organized and is validly existing as a national banking association
organized under the laws of the United States and has the power to conduct its
business and affairs as a trustee.

 

(b)                                 Authorization;
Binding Obligations. It has the corporate power and authority to
perform the duties and obligations of Trustee under this Indenture. It has
taken all necessary corporate action to authorize the execution, delivery and
performance of each Transaction Document to which it is a party, and all of the
documents required to be executed by it pursuant hereto. Upon execution and
delivery by the Issuer, this Indenture will constitute the legal, valid and
binding obligation of it enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, insolvency, fraudulent
conveyance, moratorium, and similar laws affecting the rights of creditors and
subject to equitable principles (whether enforcement is sought in a legal or
equitable proceeding).

 

(c)                                  No
Conflict. Neither the execution, delivery and performance of
any Transaction Document to which it is a party, nor the consummation of the
transactions contemplated thereby, (i) is prohibited by, or requires it to
obtain any consent, authorization, approval or registration under, any law,
statute, rule, regulation, judgment, order, writ, injunction or decree that is
binding upon it or any of its properties or assets or (ii) will violate
any provision of, result in any default or acceleration of any obligations
under, result in the creation or imposition of any lien pursuant to, or require
any consent under, any agreement to which it is a party or by which it or any
of its property is bound.

 

(d)                                 No
Proceedings. There are no proceedings pending, or to the best
of its knowledge, threatened against it before any federal, state, provincial
or other governmental agency, authority, administrator or regulatory body,
arbitrator, court or other tribunal, foreign or domestic, that could reasonably
be expected to have a material adverse effect on the Collateral or the
Noteholders or any action taken or to be taken by it under any Transaction
Document to which it is a party.

 

(e)                                  Eligible
Trustee. It is an eligible trustee under the TIA as of the Closing Date.

 

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ARTICLE
SEVEN

NOTEHOLDERS’ LISTS AND REPORTS

 

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

 

Section 7.02.                         Preservation of Information:
Communication to Noteholders.

 

(a)                                  The Indenture
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of the Noteholders contained in the most recent list
furnished to the Indenture Trustee as provided in Section 7.01 and the
names and addresses of Noteholders received by the Indenture Trustee in its
capacity as Note Registrar and shall otherwise comply with TIA §312(a).  The Indenture Trustee may destroy any list
furnished to it as provided in such Section 7.01 upon receipt of a new
list so furnished.

 

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

 

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

 

Section 7.03.                         Reports by Issuer.

 

(a)                                  The Issuer
shall:

 

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

 

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

 

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

 

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

 

Section 7.04.                         Reports by Indenture Trustee.  If required by TIA §313(a), within 60 days
after each January 31st beginning with January 31, 2009,
the Indenture Trustee shall mail to each Noteholder as required by TIA §313(c) a
brief report dated as of such date that complies with TIA §313(a).  The Indenture Trustee also shall comply with
TIA §313(b).

 

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

 

ARTICLE EIGHT

 

ACCOUNTS, DISBURSEMENTS AND RELEASES

 

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

 

Section 8.02.                         Trust Accounts.

 

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

 

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

 

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

 

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Section 8.03.                         General
Provisions Regarding Accounts.

 

(a)                                  So long as no
Default or Event of Default shall have occurred and be continuing, all or a
portion of the funds in the Trust Accounts and the Swap Collateral Account
shall be invested in accordance with the provisions of Section 5.05 of the
Sale and Servicing Agreement.  Except as
otherwise provided in Section 5.05 of the Sale and Servicing Agreement,
all income or other gain from investments of moneys deposited in such Trust
Accounts (other than the Reserve Fund) shall be deposited by the Indenture
Trustee in the Collection Account and all income or other gain from investments
of moneys deposited into the Swap Collateral Account shall be deposited into
the Swap Collateral Account, and any loss resulting from such investments shall
be charged to the related Trust Account or Swap Collateral Account, as
applicable.  The Issuer will not direct
the Indenture Trustee to make any investment of any funds or to sell any
investment held in any of the Trust Accounts unless the security interest granted
and perfected in such account will continue to be perfected in such investment
or the proceeds of such sale, in either case without any further action by any
Person, and, in connection with any direction to the Indenture Trustee to make
any such investment or sale, if requested by the Indenture Trustee, the Issuer
shall deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

 

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

 

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

 

Section 8.04.                         Release of Collateral.

 

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

 

(b)                                 The Indenture
Trustee shall, at such time as there are no Notes Outstanding and all sums due
the Indenture Trustee pursuant to Section 6.07 have been paid, and all
sums due to the Swap Counterparty have been paid pursuant to the Interest Rate
Swap Agreement, release any remaining portion of the Collateral that secured
the Notes from the lien of this Indenture and release to the Issuer or any
other Person entitled thereto any funds then on deposit in the Trust Accounts.  

 

49

 

The Indenture Trustee shall
release property from the lien of this Indenture pursuant to this Section 8.04(b) only
upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an
Opinion of Counsel and (if required by the TIA as so stated in the Opinion of
Counsel) Independent Certificates in accordance with TIA §§314(c) and
314(d)(1) meeting the applicable requirements of Section 11.01.

 

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

 

ARTICLE
NINE

 

SUPPLEMENTAL
INDENTURES

 

Section 9.01.                         Supplemental Indentures
Without Consent of Noteholders.

 

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

 

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

 

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

 

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

 

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

 

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

 

50

 

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

 

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

 

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

 

(viii)                        to modify or
remove the restrictions on transfer of the Non-Offered Notes.

 

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

 

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

 

Section 9.02.                         Supplemental Indentures With
Consent of Noteholders and the Swap Counterparty.

 

(a)                                  The Issuer and
the Indenture Trustee, when authorized by an Issuer Order, may, with prior
notice to each Rating Agency and the Swap Counterparty and with the consent of
the Required Holders, by Act of such Holders delivered to the Issuer and the
Indenture Trustee, enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

 

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

 

51

 

the payment of any such amount due on the Notes on or after the
respective due dates thereof (or, in the case of redemption, on or after
the  Redemption Date);

 

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

 

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

 

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

 

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

 

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

 

(b)                                 The Issuer and
the Indenture Trustee, when authorized by an Issuer Order, also may, with prior
written notice to the Rating Agencies and with the consent in writing of the
Swap Counterparty to such action (which consent shall not be unreasonably
withheld or delayed), enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Swap Counterparty.

 

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

 

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

 

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

 

52

 

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

 

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

 

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

 

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

 

ARTICLE
TEN

 

REDEMPTION
OF NOTES

 

Section 10.01.                  Redemption.

 

(a)                                  In the event
that the Servicer pursuant to Section 7.10 of the Sale and Servicing
Agreement purchases the corpus of the Trust, the Notes are subject to
redemption in whole, but not in part, on the Distribution Date on which such
repurchase occurs, for a purchase price equal to the outstanding principal, and
accrued interest on the Notes; provided, however, that the Issuer has available funds sufficient to
pay such amounts.  The Servicer or the
Issuer shall furnish each Rating Agency notice of such redemption.  If the Notes are to be redeemed pursuant to
this Section 10.01(a), the Servicer or the Issuer shall furnish notice of
such election to the Indenture Trustee not later than 20 days prior to the
Redemption Date and the Issuer shall deposit with the Indenture Trustee in the
Note Distribution Account the Redemption Price to be redeemed whereupon all
such Notes shall be due and payable on the Redemption Date upon the furnishing
of a notice complying with Section 10.02 to each Holder of the Notes.

 

53

 

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

 

Section 10.02.                  Form of Redemption Notice.

 

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

 

All
notices of redemption shall state:

 

(i)                                     the Redemption
Date;

 

(ii)                                  the Redemption
Date Amount; and

 

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

 

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

 

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

 

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

 

ARTICLE
ELEVEN

 

MISCELLANEOUS

 

Section 11.01.                  Compliance Certificates and Opinions, etc.

 

(a)                                  Upon any
application or request by the Issuer to the Indenture Trustee to take any
action under any provision of this Indenture, the Issuer shall furnish to the
Indenture Trustee (i) an Officer’s Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in
the opinion of such counsel all such conditions precedent, if any, have been
complied with, and (iii) (if required by the TIA as so stated in the
Opinion of Counsel) an Independent Certificate from a 

 

54

 

firm of certified public
accountants meeting the applicable requirements of this Section and TIA
§314(c), except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture, no additional certificate or opinion need be
furnished.  No additional certificate or
opinion need be furnished.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

55

 

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

 

(v)                                 Notwithstanding
any other provision of this Section, the Issuer may, without compliance with
the other provisions of this Section, (A) collect, liquidate, sell or
otherwise dispose of the Contracts as and to the extent permitted or required by
the Transaction Documents, and (B) make cash payments out of the Trust
Accounts as and to the extent permitted or required by the Transaction
Documents, so long as the Issuer shall deliver to the Indenture Trustee every
six months, commencing June 1, 2008, an Officer’s Certificate stating that
all the dispositions of Collateral described in clauses (A) or (B) that
occurred during the preceding six calendar months were in the ordinary course
of the Issuer’s business and that the proceeds thereof were applied in
accordance with the Transaction Documents.

 

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

 

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

 

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

 

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

 

56

 

however, be construed to affect the Indenture Trustee’s right to rely
upon the truth and accuracy of any statement or opinion contained in any such
document as provided in Article Six.

 

Section 11.03.                  Acts of Noteholders and the Swap Counterparty.

 

(a)                                  Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Noteholders and/or the Swap
Counterparty may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Noteholders or the Swap Counterparty, as the case
may be, in person or by agents duly appointed in writing; and except as herein
otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee, and, where it
is hereby expressly required, to the Issuer. 
Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders
and/or the Swap Counterparty, as applicable, signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01) conclusive
in favor of the Indenture Trustee and the Issuer, if made in the manner
provided in this Section.

 

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

 

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

 

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

 

Section 11.04.                  Notices.  All notices, demands, certificates, requests
and communications hereunder (“notices”) shall be in writing and shall be
effective (a) upon receipt when sent through the U.S. mails, registered or
certified mail, return receipt requested, postage prepaid, with such receipt to
be effective the date of delivery indicated on the return receipt, or (b) one
Business Day after delivery to an overnight courier, or (c) on the date
personally delivered to an Authorized Officer of the party to which sent, or (d) on
the date transmitted by legible telecopier or electronic mail transmission with
a confirmation of receipt, in all cases addressed to the recipient at the
address specified in the Sale and Servicing Agreement for such recipient.  Each party hereto may, by notice given in
accordance herewith to each of the other parties hereto, designate any further
or different address to which subsequent notices shall be sent.

 

Section 11.05.                  Notices to Noteholders; Waiver.  Where this Indenture provides for notice to
Noteholders of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and mailed, first-class,
postage prepaid to each Noteholder affected by such event, at its address as it
appears on the Note Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice.  In any case where notice to Noteholders is
given by mail, neither the failure to mail such notice nor any defect in any
notice so mailed to any particular Noteholder shall affect the sufficiency of
such notice with respect to other Noteholders, and any notice that is mailed in
the manner herein provided shall conclusively be presumed to have been duly
given.

 

57

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

58

 

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

 

Section 11.13.                  Counterparts.  This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

 

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

 

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

 

Section 11.16.                  No Petition.  The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note or a beneficial interest in
a Note, hereby covenant and agree that they will not at any time institute
against the Trust Depositor or the Issuer, or join in any institution against
the Trust Depositor or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Notes, this Indenture or any of the other
Transaction Documents.

 

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

 

59

 

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

 

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

 

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

 

Section 11.20.                  Limitation of Rights.  All of the rights of the Swap Counterparty
in, to and under this Indenture or any other Transaction Document (including,
but not limited to, all of the Swap Counterparty’s rights as a third-party
beneficiary of this Indenture and all of the Swap Counterparty’s rights to
receive notice of any action hereunder or under any other Transaction Document
and to give or withhold consent to any action hereunder or under any other Transaction
Document) 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 such Interest Rate Swap Agreement.

 

[signature page follows]

 

60

 

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

 

	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
  TRUST
  2008-1

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its individual capacity but solely on behalf of the
  Issuer as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Erik E. Overcash

  
	
   

  	
  Printed
  Name: Erik E. Overcash

  
	
   

  	
  Title:
  Financial Services Officer

  
	
   

  	
   

  
	
   

  	
  THE
  BANK OF NEW YORK TRUST COMPANY, N.A., not in its individual capacity but
  solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Corine D. Twin

  
	
   

  	
  Printed
  Name: Corine D. Twin

  
	
   

  	
  Title: Assistant Vice President

  
				

 

 

 

	
  STATE
  OF ILLINOIS

  	
  )

  
	
   

  	
  )                                            SS

  
	
  COUNTY OF COOK

  	
  )

  

 

	
  On

  	
  February 19,
  2008

  	
   

  
	
   

  	
   

  	
  [insert date]

  	
   

  	
   

  
	
   

  	
   

  
	
  before me,

  	
  Michelle
  Kallick, Paralegal

  	
   

  
	
   

  	
   

  	
  [Insert name
  and title of notary]

  	
   

  	
   

  
	
   

  	
   

  
	
  personally appeared

  	
  Corine D.
  Twin

  	
  ,

  	
   

  
									

 

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 such person(s) acted, executed the instrument.

 

WITNESS my hand and official seal.

 

	
  Signature

  	
   /s/ Michelle Kallick

  	
  [Seal]

  	
   

  

 

 

 

	
  STATE OF DELAWARE

  	
  )

  
	
   

  	
  ) SS

  
	
  COUNTY OF NEW CASTLE

  	
  )

  

 

	
  On

  	
  February 15,
  2008

  	
   

  
	
   

  	
   

  	
  [insert date]

  	
   

  	
   

  
	
   

  	
   

  
	
  before me,

  	
  Amanda Gamble,
  Sales Associate

  	
   

  
	
   

  	
   

  	
  [Insert name
  and title of notary]

  	
   

  	
   

  
	
   

  	
   

  
	
  personally appeared

  	
  Erik Overcash

  	
  ,

  	
   

  
									

 

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 such person(s) acted, executed the instrument.

 

WITNESS my hand and official seal.

 

	
  Signature

  	
  /s/ Amanda E. Gamble

  	
  [Seal]

  	
   

  

 

 

 

EXHIBIT A-1

 

FORM OF CLASS A-1 NOTE

 

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

 

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

 

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

 

HARLEY-DAVIDSON MOTORCYCLE
TRUST 2008-1

 

[        ]% MOTORCYCLE
CONTRACT BACKED NOTES, CLASS A-1

 

 

	
  REGISTERED

  	
   

  	
   

  	
  $

  	
   

  

 

	
  No. R-

  	
   

  	
  CUSIP No.

  	
   

  	
   

  

 

Harley-Davidson Motorcycle Trust 2008-1, a statutory trust organized
and existing under the laws of the State of Delaware (herein referred to as the
“Issuer”), for value received, hereby promises to pay to [                ],
or registered assigns, the principal sum of 
                      
($          ) payable
on the earlier of the Distribution Date occurring in [                            ]
(the “Class A-1 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.

 

The Issuer will pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or
made available for payment, on the principal amount of this Note outstanding on
the preceding Distribution Date (after giving effect to all payments of
principal made on the preceding Distribution Date), subject to certain
limitations contained in Section 3.01 of the Indenture.  Interest on this Note will accrue for each
Distribution Date during the related Interest Period and will be computed for
the actual number of days elapsed in the related Interest Period based on a
360-day year.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

 

The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. 

 

A-1-1

 

All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

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

 

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

 

A-1-2

 

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

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
   

  	
  TRUST
  2008-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its individual capacity but solely on behalf of the
  Issuer as Owner Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Printed
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

A-1-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

 

	
   

  	
   

  	
   

  	
  THE
  BANK OF NEW YORK TRUST

  
	
   

  	
   

  	
   

  	
  COMPANY,
  N.A.

  
	
   

  	
   

  	
   

  	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signatory

  

 

A-1-4

 

[REVERSE OF CLASS A-1
NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [        ]% Motorcycle
Contract Backed Notes, Class A-1 (the “Class A-1 Notes”), all issued
under an Indenture, dated as of February 15, 2008 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Class A-1
Notes are subject to all terms of the Indenture.  All terms used in this Note that are defined
in the Indenture, as supplemented or amended, shall have the meanings assigned
to them in or pursuant to the Indenture, as so supplemented or amended.

 

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

 

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

 

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

 

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

 

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

 

A-1-5

 

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

 

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

 

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

 

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

 

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

 

A-1-6

 

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

 

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

 

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

 

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

 

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

 

A-1-7

 

EXHIBIT A-2

 

FORM OF CLASS A-2
NOTE

 

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

 

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

 

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

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2008-1

 

[        ]% MOTORCYCLE
CONTRACT BACKED NOTES,

 

CLASS A-2

 

	
  REGISTERED

  	
   

  	
   

  	
  $

  

 

	
  No. R-

  	
   

  	
  CUSIP No.

  	
   

  

 

Harley-Davidson
Motorcycle Trust 2008-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to [                      ],
or registered assigns, the principal sum of 
                      
($                    )
payable on the earlier of the Distribution Date occurring in [                      ]
(the “Class A-2 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.  No payments of principal of the Class A-2
Notes shall be made until the principal on the Class A-1 Notes have been
paid in full.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in Section 3.01
of the Indenture.  Interest on this Note
will accrue for each Distribution Date during the related Interest Period and
will be computed for the actual number of days elapsed in the related Interest
Period based on a 360-day year.  Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.  

 

A-2-1

 

All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

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

 

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

 

A-2-2

 

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

 

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
   

  	
  TRUST
  2008-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its individual capacity but solely on behalf of the
  Issuer as Owner Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Printed
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
								

 

A-2-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signatory

  

 

A-2-4

 

[REVERSE OF CLASS A-2 NOTE]

 

                This Note is one of a duly
authorized issue of Notes of the Issuer, designated as its [        ]%
Motorcycle Contract Backed Notes, Class A-2 (the “Class A-2 Notes”),
all issued under an Indenture, dated as of February 15, 2008 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Notes are
subject to all terms of the Indenture. 
All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or
pursuant to the Indenture, as so supplemented or amended.

 

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

 

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

 

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

 

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

 

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

 

 

 

A-2-5

 

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

 

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

 

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

 

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

 

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

 

A-2-6

 

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

 

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

 

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

 

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

 

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

 

A-2-7

 

EXHIBIT A-3a

 

FORM OF CLASS A-3a
NOTE

 

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

 

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

 

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

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2008-1

 

[        ]% MOTORCYCLE
CONTRACT BACKED NOTES,

 

CLASS A-3a

 

REGISTERED                                                                                                                                                        $

 

No. R-                                                                                                                                     CUSIP
No.                             

 

Harley-Davidson
Motorcycle Trust 2008-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to [                      ],
or registered assigns, the principal sum of 
                      
($                    )
payable on the earlier of the Distribution Date occurring in [                      ]
(the “Class A-3 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.  No payments of principal of the Class A-3a
Notes shall be made until the principal on the Class A-1 Notes have been
paid in full.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in Section 3.01
of the Indenture.  Interest on this Note
will accrue for each Distribution Date during the related Interest Period and
will be computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.  

 

A-3a-1

 

All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

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

 

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

 

A-3a-2

 

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

 

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
   

  	
  TRUST
  2008-1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
   

  	
   

  	
   

  	
  not in its individual
  capacity but solely on 

  
	
   

  	
   

  	
   

  	
   

  	
  behalf
  of the Issuer as Owner Trustee, 

  
	
   

  	
   

  	
   

  	
   

  	
  under
  the Trust Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name: 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  

 

A-3a-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  THE
  BANK OF NEW YORK TRUST

  COMPANY, N.A.,

  not in its individual capacity but solely as Indenture

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Authorized Signatory

  

 

A-3a-4

 

[REVERSE OF CLASS A-3a NOTE]

 

                This Note is one of a duly
authorized issue of Notes of the Issuer, designated as its [        ]%
Motorcycle Contract Backed Notes, Class A-3a (the “Class A-3a Notes”),
all issued under an Indenture, dated as of February 15, 2008 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Notes are
subject to all terms of the Indenture. 
All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant
to the Indenture, as so supplemented or amended.

 

                The Class A-3a Notes and
the other Classes of Notes described in the Indenture (collectively, the “Notes”)
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture subject to the priorities of
allocations as to interest and principal payments as described in the Sale and
Servicing Agreement.

 

                Principal of the Class A-3a
Notes will be payable on the earlier of the Class A-3 Final Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01(a) or
10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A-3a Notes shall be due and payable on the date on which following
the occurrence of an Event of Default on which the maturity of the Notes shall
have been accelerated in the manner provided in the Indenture.  All principal payments on the Class A-3a
Notes shall be made pro rata to the Class A-3a Noteholders entitled
thereto.

 

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

 

                The Issuer shall pay interest on
overdue installments of interest at the Class A-3a Rate to the extent
lawful.

 

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

 

A-3a-5

 

                As provided in the Indenture and
subject to certain limitations set forth therein, the transfer of this Note may
be registered on the Note Register upon surrender of this Note for registration
of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Indenture Trustee duly executed by, the Holder
hereof or his attorney duly authorized in writing, with such signature
guaranteed by an eligible guarantor institution which is a participant in the
Securities Transfer Agent’s Medallion Program (STAMP) or similar signature
guarantee program, and such other documents as the Indenture Trustee may
require, and thereupon one or more new program, and such other documents as the
Indenture Trustee may require, and thereupon one or more new Class A-3a
Notes of authorized denomination and in the same aggregate principal amount
will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

 

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

 

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

 

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

 

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

 

A-3a-6

 

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

 

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

 

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

 

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

 

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

 

A-3a-7

 

EXHIBIT A-3b

 

FORM OF CLASS A-3b
NOTE

 

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

 

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

 

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

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2008-1

 

FLOATING RATE MOTORCYCLE CONTRACT BACKED NOTES,

 

CLASS A-3b

 

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
  CUSIP No.

  	
   

  

 

 

Harley-Davidson
Motorcycle Trust 2008-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to [                      ],
or registered assigns, the principal sum of                       
($                    )
payable on the earlier of the Distribution Date occurring in [                      ]
(the “Class A-3 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.  No payments of principal of the Class A-3b
Notes shall be made until the principal on the Class A-1 Notes have been
paid in full.

 

The
Issuer will pay interest on this Note at a rate based on LIBOR determined in
accordance with the terms of the Sale and Servicing Agreement plus [      ]%
per annum until the principal of this Note is paid or made available for
payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in Section 3.01
of the Indenture.  Interest on this Note
will accrue for each Distribution Date during the related Interest Period and
will be computed for the actual number of days elapsed in the related Interest
Period based on a 360-day year.  Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

 

A-3b-1

 

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

 

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

 

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

 

A-3b-2

 

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

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
   

  	
  TRUST
  2008-1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  WILMINGTON TRUST
  COMPANY, not

  in its individual capacity but solely on

  behalf of the Issuer as Owner Trustee,

  under the Trust Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name: 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  

 

A-3b-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

  	
  THE
  BANK OF NEW YORK TRUST 

  
	
   

  	
  COMPANY,
  N.A.,

  
	
   

  	
  not
  in its individual capacity but solely as Indenture

  
	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Authorized Signatory

  

 

A-3b-4

 

[REVERSE OF CLASS A-3b NOTE]

 

                This Note is one of a duly
authorized issue of Notes of the Issuer, designated as its Floating Rate
Motorcycle Contract Backed Notes, Class A-3b (the “Class A-3b Notes”),
all issued under an Indenture, dated as of February 15, 2008 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Notes are
subject to all terms of the Indenture. 
All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or
pursuant to the Indenture, as so supplemented or amended.

 

                The Class A-3b Notes and
the other Classes of Notes described in the Indenture (collectively, the “Notes”)
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture subject to the priorities of
allocations as to interest and principal payments as described in the Sale and
Servicing Agreement.

 

                Principal of the Class A-3b
Notes will be payable on the earlier of the Class A-3 Final Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01(a) or
10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A-3b Notes shall be due and payable on the date on which following
the occurrence of an Event of Default on which the maturity of the Notes shall
have been accelerated in the manner provided in the Indenture.  All principal payments on the Class A-3b
Notes shall be made pro rata to the Class A-3b Noteholders entitled
thereto.

 

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

 

                The Issuer shall pay interest on
overdue installments of interest at the Class A-3b Rate to the extent
lawful.

 

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

 

A-3b-5

 

                As provided in the Indenture and
subject to certain limitations set forth therein, the transfer of this Note may
be registered on the Note Register upon surrender of this Note for registration
of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Indenture Trustee duly executed by, the Holder
hereof or his attorney duly authorized in writing, with such signature
guaranteed by an eligible guarantor institution which is a participant in the
Securities Transfer Agent’s Medallion Program (STAMP) or similar signature
guarantee program, and such other documents as the Indenture Trustee may
require, and thereupon one or more new program, and such other documents as the
Indenture Trustee may require, and thereupon one or more new Class A-3b
Notes of authorized denomination and in the same aggregate principal amount
will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

 

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

 

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

 

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

 

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

 

A-3b-6

 

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

 

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

 

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

 

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

 

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

 

A-3b-7

 

EXHIBIT A-4

 

FORM OF CLASS A-4
NOTE

 

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

 

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

 

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

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2008-1

 

[        ]% MOTORCYCLE
CONTRACT BACKED NOTES,

 

CLASS A-4

 

 

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
  CUSIP No.

  	
   

  

 

Harley-Davidson
Motorcycle Trust 2008-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to [                      ],
or registered assigns, the principal sum of 
                      
($                    )
payable on the earlier of the Distribution Date occurring in [                      ]
(the “Class A-4 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.  No payments of principal of the Class A-4
Notes shall be made until the principal on the Class A-1 Notes have been
paid in full.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in Section 3.01
of the Indenture.  Interest on this Note
will accrue for each Distribution Date during the related Interest Period and
will be computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.

 

A-4-1

 

All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

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

 

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

 

A-4-2

 

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

 

                                                                                                                                                                                

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
   

  	
  TRUST
  2008-1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  WILMINGTON TRUST
  COMPANY, not

  in its individual capacity but solely on

  behalf of the Issuer as Owner Trustee,

  under the Trust Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name: 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  

 

A-4-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

 

	
   

  	
  THE
  BANK OF NEW YORK TRUST 

  
	
   

  	
  COMPANY,
  N.A.,

  
	
   

  	
  not
  in its individual capacity but solely as Indenture

  
	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 

 

A-4-4

[REVERSE OF CLASS A-4 NOTE]

 

                This Note is one of a duly
authorized issue of Notes of the Issuer, designated as its [        ]%
Motorcycle Contract Backed Notes, Class A-4 (the “Class A-4 Notes”),
all issued under an Indenture, dated as of February 15, 2008 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture
Trustee (the “Indenture Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes.  The Notes are
subject to all terms of the Indenture. 
All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or
pursuant to the Indenture, as so supplemented or amended.

 

                The Class A-4 Notes and the
other Classes of Notes described in the Indenture (collectively, the “Notes”)
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture subject to the priorities of
allocations as to interest and principal payments as described in the Sale and
Servicing Agreement.

 

                Principal of the Class A-4
Notes will be payable on the earlier of the Class A-4 Final Distribution
Date and the Redemption Date, if any, pursuant to Section 10.01(a) or
10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A-4 Notes shall be due and payable on the date on which following
the occurrence of an Event of Default on which the maturity of the Notes shall
have been accelerated in the manner provided in the Indenture.  All principal payments on the Class A-4
Notes shall be made pro rata to the Class A-4 Noteholders entitled
thereto.

 

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

 

                The Issuer shall pay interest on
overdue installments of interest at the Class A-4 Rate to the extent
lawful.

 

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

 

A-4-5

 

                As provided in the Indenture and
subject to certain limitations set forth therein, the transfer of this Note may
be registered on the Note Register upon surrender of this Note for registration
of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Indenture Trustee duly executed by, the Holder
hereof or his attorney duly authorized in writing, with such signature
guaranteed by an eligible guarantor institution which is a participant in the
Securities Transfer Agent’s Medallion Program (STAMP) or similar signature
guarantee program, and such other documents as the Indenture Trustee may
require, and thereupon one or more new program, and such other documents as the
Indenture Trustee may require, and thereupon one or more new Class A-4
Notes of authorized denomination and in the same aggregate principal amount
will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

 

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

 

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

 

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

 

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

 

A-4-6

 

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

 

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

 

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

 

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

 

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

 

A-4-7

 

EXHIBIT A-5

 

FORM OF CLASS B
NOTE

 

[REGULATION S GLOBAL NOTE] [RULE 144A GLOBAL NOTE]

 

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

 

[TEMPORARY REGULATION S GLOBAL NOTE LEGEND] [THIS NOTE IS
A TEMPORARY REGULATION S GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
SECURITIES ACT (AS DEFINED BELOW). 
NEITHER THIS TEMPORARY REGULATION S GLOBAL NOTE NOR ANY INTEREST HEREIN MAY BE
OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO
BELOW.  NO BENEFICIAL OWNERS OF THIS
TEMPORARY REGULATION S GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN
DELIVERED PURSUANT TO THE TERMS OF THE INDENTURE.]

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR
ANY OTHER RELEVANT JURISDICTION AND MAY BE RESOLD, PLEDGED, OR OTHERWISE
TRANSFERRED (A)(1) TO A PERSON WHO IS A “QUALIFIED INSTITUTIONAL BUYER” (A
“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”),
PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH IT
EXERCISES COMPLETE INVESTMENT DISCRETION, EACH OF WHICH IS A PERSON THAT THE
SELLER REASONABLY BELIEVES IS A QIB, (2) OUTSIDE THE UNITED STATES TO
CERTAIN PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT (“REGULATION S”)) PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE
ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES COMPLETE INVESTMENT DISCRETION,
EACH OF WHICH IS NOT A U.S. PERSON, IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S OR (3) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT, IN EACH CASE IN A PRINCIPAL AMOUNT OF
NOT LESS THAN U.S.$100,000 AND INTEGRAL MULTIPLES OF U.S.$1,000 IN EXCESS
THEREOF FOR THE PURCHASER AND 

 

A-5-1

 

FOR
EACH ACCOUNT FOR WHICH IT IS ACTING, (B) IN COMPLIANCE WITH THE
CERTIFICATION AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED TO
HEREIN AND (C) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES AND ANY OTHER RELEVANT JURISDICTION.  EACH PURCHASER OR TRANSFEREE OF THIS NOTE
WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE
INDENTURE.

 

NO
SALE OR TRANSFER OF THIS NOTE MAY BE MADE TO A PURCHASER WHO IS (A) ACTING
ON BEHALF, OR USING ANY “PLAN ASSETS,” OF AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING
OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED (“ERISA”), A PLAN WITHIN THE MEANING OF SECTION 4975(e)(1) OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHICH IS
DEEMED TO HOLD THE ASSETS OF ANY SUCH PLAN PURSUANT TO 29 C.F.R. SECTION 2510.3-101
OR OTHERWISE UNDER ERISA, WHICH PLAN OR ENTITY IS SUBJECT TO TITLE I OF ERISA
OR SECTION 4975 OF THE CODE, OR A GOVERNMENTAL OR CHURCH PLAN WHICH IS
SUBJECT TO ANY FEDERAL, STATE, OR LOCAL LAW (EACH, A “SIMILAR LAW’) THAT IS
SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE (COLLECTIVELY, A “PLAN”) AND (B) ACQUIRING
OR HOLDING SUCH NOTE IN A MANNER THAT IS NOT ELIGIBLE FOR AN EXEMPTION GRANTED
BY UNITED STATES DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
(“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, OR A SIMILAR
EXEMPTION, OR, IN THE CASE OF A PLAN SUBJECT TO SIMILAR LAW, THAT WOULD EITHER
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION.

 

NO
TRANSFER OF THIS NOTE (OR ANY INTEREST HEREIN) MAY BE MADE (AND NEITHER
THE INDENTURE TRUSTEE NOR THE NOTE REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER)
IF SUCH TRANSFER WOULD BE MADE TO A PERSON THAT IS OTHERWISE UNABLE TO MAKE THE
CERTIFICATIONS AND REPRESENTATIONS DEEMED TO BE MADE BY SUCH PERSON IN THE
INDENTURE REFERRED TO HEREIN. 
ACCORDINGLY, TRANSFER OF THIS NOTE IS RESTRICTED, AND AN INVESTOR IN
THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME OR UNTIL MATURITY.

 

ANY
TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE
VOID AB INITIO, AND WILL NOT OPERATE TO
TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE NOTWITHSTANDING ANY INSTRUCTIONS
TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY.  EACH TRANSFEROR OF THIS NOTE AGREES TO
PROVIDE NOTICE OF THE TRANSFER RESTRICTIONS SET FORTH HEREIN AND IN THE
INDENTURE TO THE TRANSFEREE.  IN ADDITION
TO THE FOREGOING, THE ISSUER 

 

A-5-2

 

MAINTAINS
THE RIGHT TO RESELL ANY INTEREST IN THIS NOTE PREVIOUSLY TRANSFERRED TO AN
IMPERMISSIBLE HOLDER IN ACCORDANCE WITH AND SUBJECT TO THE TERMS OF THE
INDENTURE.

 

[REGULATION S LEGEND] [AN INTEREST IN THIS NOTE MAY NOT
BE HELD BY A PERSON THAT IS A U.S. PERSON (AS DEFINED IN REGULATION S) AT ANY
TIME.]

 

[REGULATION S GLOBAL LEGEND] [THIS
REGULATION S GLOBAL NOTE IS A GLOBAL NOTE WHICH IS EXCHANGEABLE FOR INTERESTS
IN OTHER GLOBAL NOTES AND DEFINITIVE NOTES SUBJECT TO THE TERMS AND CONDITIONS
SET FORTH HEREIN AND IN THE INDENTURE. IN ADDITION, AN INTEREST IN THIS
REGULATION S GLOBAL NOTE MAY ONLY BE HELD THROUGH EUROCLEAR OR CLEARSTREAM
AT ANY TIME.]

 

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

 

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

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2008-1

 

[        ]% MOTORCYCLE
CONTRACT BACKED NOTES,

CLASS B

 

	
  REGISTERED

  	
   

  	
  $        

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.                

  

 

Harley-Davidson
Motorcycle Trust 2008-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to [                      ],
or registered assigns, the principal sum of                       
($                    )
payable on the earlier of the Distribution Date occurring in [                          ]
(the “Class B Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in Section 3.01
of the Indenture.  Interest on this Note
will accrue for each Distribution Date during the related Interest Period and
will be computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.  

 

A-5-3

 

All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

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

 

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

 

[For Global Notes only] [On any
redemption, purchase, exchange or cancellation of any of the Notes represented
by this Global Note, details of such redemption, purchase, exchange or cancellation
shall be entered by the Note Registrar in the Schedule of Exchanges in Global
Note attached hereto recording any such redemption, purchase, exchange or
cancellation.  Upon any such redemption,
purchase, exchange or cancellation, the principal amount of this Global Note
and the Notes represented by this Global Note shall be reduced or increased, as
appropriate, by the principal amount so redeemed, purchased, exchanged or
cancelled.]

 

[For temporary Regulation S Global Note only] [On or after
the Exchange Date, this temporary Regulation S Global Note may be exchanged, in
whole or in part (free of charge), for a permanent Regulation S Global Note
upon certification of non-U.S. beneficial ownership substantially in the form
set out in Exhibit F of the Indenture. 
The permanent Regulation S Global Note shall be so issued and delivered
in exchange for only that portion of 
this temporary Regulation S Global Note in respect of which there shall
have been presented to the Note Registrar by Euroclear or Clearstream, as
applicable, a certificate substantially in the form set out in Exhibit G
to the Indenture.]

 

A-5-4

 

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

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  	
   

  
	
   

  	
  TRUST
  2008-1

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY, not in its individual capacity but solely
  on behalf of the Issuer as Owner Trustee, under the Trust Agreement

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
										

 

A-5-5

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

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

  
	
   

  	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

A-5-6

 

[REVERSE OF CLASS B NOTE]

 

                This Note is one of a duly
authorized issue of Notes of the Issuer, designated as its [        ]%
Motorcycle Contract, Class B (the “Class B Notes”), all issued under
an Indenture, dated as of February 15, 2008 (the “Indenture”), between the
Issuer and The Bank of New York Trust Company, N.A., as Indenture Trustee (the “Indenture
Trustee”), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.  The Notes are subject to all terms of the
Indenture.  All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented
or amended.

 

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

 

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

 

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

 

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

 

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

 

A-5-7

 

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

 

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

 

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

 

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

 

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

 

A-5-8

 

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

 

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

 

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

 

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

 

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

 

A-5-9

 

SCHEDULE OF EXCHANGES IN GLOBAL NOTE

 

The following exchanges of a part of this
Global Note have been made:

 

	
  Date
  of 

  Exchange

  	
   

  	
  Amount of

  Decrease in Principal

  Amount of this Global Note

  	
   

  	
  Amount of 

  Increase in Principal Amount of this Global Note

  	
   

  	
  Principal Amount of this Global Note following such Decrease or
  Increase

  	
   

  	
  Signature of authorized officer of Indenture Trustee or securities
  custodian

  

 

A-5-10

 

EXHIBIT A-6

 

FORM OF CLASS C
NOTE

 

[REGULATION S GLOBAL NOTE] [RULE 144A GLOBAL NOTE]

 

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

 

[TEMPORARY REGULATION S GLOBAL NOTE LEGEND] [THIS NOTE IS
A TEMPORARY REGULATION S GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
SECURITIES ACT (AS DEFINED BELOW). 
NEITHER THIS TEMPORARY REGULATION S GLOBAL NOTE NOR ANY INTEREST HEREIN MAY BE
OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO
BELOW.  NO BENEFICIAL OWNERS OF THIS
TEMPORARY REGULATION S GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN
DELIVERED PURSUANT TO THE TERMS OF THE INDENTURE.]

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR
ANY OTHER RELEVANT JURISDICTION AND MAY BE RESOLD, PLEDGED, OR OTHERWISE
TRANSFERRED (A)(1) TO A PERSON WHO IS A “QUALIFIED INSTITUTIONAL BUYER” (A
“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”),
PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH IT
EXERCISES COMPLETE INVESTMENT DISCRETION, EACH OF WHICH IS A PERSON THAT THE
SELLER REASONABLY BELIEVES IS A QIB, (2) OUTSIDE THE UNITED STATES TO
CERTAIN PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT (“REGULATION S”)) PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE
ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES COMPLETE INVESTMENT DISCRETION,
EACH OF WHICH IS NOT A U.S. PERSON, IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S OR (3) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT, IN EACH CASE IN A PRINCIPAL AMOUNT OF
NOT LESS THAN U.S.$100,000 AND INTEGRAL MULTIPLES OF U.S.$1,000 IN EXCESS
THEREOF FOR THE PURCHASER AND 

 

A-6-1

 

FOR
EACH ACCOUNT FOR WHICH IT IS ACTING, (B) IN COMPLIANCE WITH THE
CERTIFICATION AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED TO
HEREIN AND (C) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES AND ANY OTHER RELEVANT JURISDICTION.  EACH PURCHASER OR TRANSFEREE OF THIS NOTE
WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE
INDENTURE.

 

NO
SALE OR TRANSFER OF THIS NOTE MAY BE MADE TO A PURCHASER WHO IS (A) ACTING
ON BEHALF, OR USING ANY “PLAN ASSETS,” OF AN EMPLOYEE BENEFIT PLAN WITHIN THE
MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED (“ERISA”), A PLAN WITHIN THE MEANING OF SECTION 4975(e)(1) OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHICH IS
DEEMED TO HOLD THE ASSETS OF ANY SUCH PLAN PURSUANT TO 29 C.F.R. SECTION 2510.3-101
OR OTHERWISE UNDER ERISA, WHICH PLAN OR ENTITY IS SUBJECT TO TITLE I OF ERISA
OR SECTION 4975 OF THE CODE, OR A GOVERNMENTAL OR CHURCH PLAN WHICH IS
SUBJECT TO ANY FEDERAL, STATE, OR LOCAL LAW (EACH, A “SIMILAR LAW’) THAT IS
SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE (COLLECTIVELY, A “PLAN”) AND (B) ACQUIRING
OR HOLDING SUCH NOTE IN A MANNER THAT IS NOT ELIGIBLE FOR AN EXEMPTION GRANTED
BY UNITED STATES DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
(“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, OR A SIMILAR
EXEMPTION, OR, IN THE CASE OF A PLAN SUBJECT TO SIMILAR LAW, THAT WOULD EITHER
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION.

 

NO
TRANSFER OF THIS NOTE (OR ANY INTEREST HEREIN) MAY BE MADE (AND NEITHER
THE INDENTURE TRUSTEE NOR THE NOTE REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER)
IF SUCH TRANSFER WOULD BE MADE TO A PERSON THAT IS OTHERWISE UNABLE TO MAKE THE
CERTIFICATIONS AND REPRESENTATIONS DEEMED TO BE MADE BY SUCH PERSON IN THE
INDENTURE REFERRED TO HEREIN. 
ACCORDINGLY, TRANSFER OF THIS NOTE IS RESTRICTED, AND AN INVESTOR IN
THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME OR UNTIL MATURITY.

 

ANY
TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE
VOID AB INITIO, AND WILL NOT OPERATE TO
TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE NOTWITHSTANDING ANY
INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY
INTERMEDIARY.  EACH TRANSFEROR OF THIS
NOTE AGREES TO PROVIDE NOTICE OF THE TRANSFER RESTRICTIONS SET FORTH HEREIN AND
IN THE INDENTURE TO THE TRANSFEREE.  IN
ADDITION TO THE FOREGOING, THE ISSUER 

 

A-6-2

 

MAINTAINS
THE RIGHT TO RESELL ANY INTEREST IN THIS NOTE PREVIOUSLY TRANSFERRED TO AN
IMPERMISSIBLE HOLDER IN ACCORDANCE WITH AND SUBJECT TO THE TERMS OF THE
INDENTURE.

 

[REGULATION S LEGEND] [AN INTEREST IN THIS NOTE MAY NOT
BE HELD BY A PERSON THAT IS A U.S. PERSON (AS DEFINED IN REGULATION S) AT ANY
TIME.]

 

[REGULATION S GLOBAL LEGEND] [THIS
REGULATION S GLOBAL NOTE IS A GLOBAL NOTE WHICH IS EXCHANGEABLE FOR INTERESTS
IN OTHER GLOBAL NOTES AND DEFINITIVE NOTES SUBJECT TO THE TERMS AND CONDITIONS
SET FORTH HEREIN AND IN THE INDENTURE. IN ADDITION, AN INTEREST IN THIS
REGULATION S GLOBAL NOTE MAY ONLY BE HELD THROUGH EUROCLEAR OR CLEARSTREAM
AT ANY TIME.]

 

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

 

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

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2008-1

 

[        ]% MOTORCYCLE
CONTRACT BACKED NOTES,

CLASS C

 

	
  REGISTERED

  	
  $

  

 

	
  No. R-

  	
   

  	
  CUSIP No.                   

  

 

Harley-Davidson
Motorcycle Trust 2008-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to [                      ],
or registered assigns, the principal sum of 
                      
($                    )
payable on the earlier of the Distribution Date occurring in [                          ]
(the “Class C Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in Section 3.01
of the Indenture.  Interest on this Note
will accrue for each Distribution Date during the related Interest Period and
will be computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.

 

A-6-3

 

All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

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

 

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

 

[For Global Notes only] [On any
redemption, purchase, exchange or cancellation of any of the Notes represented
by this Global Note, details of such redemption, purchase, exchange or
cancellation shall be entered by the Note Registrar in the Schedule of
Exchanges in Global Note attached hereto recording any such redemption,
purchase, exchange or cancellation.  Upon
any such redemption, purchase, exchange or cancellation, the principal amount
of this Global Note and the Notes represented by this Global Note shall be
reduced or increased, as appropriate, by the principal amount so redeemed,
purchased, exchanged or cancelled.]

 

[For temporary Regulation S Global Note only] [On or after
the Exchange Date, this temporary Regulation S Global Note may be exchanged, in
whole or in part (free of charge), for a permanent Regulation S Global Note
upon certification of non-U.S. beneficial ownership substantially in the form
set out in Exhibit F of the Indenture. 
The permanent Regulation S Global Note shall be so issued and delivered
in exchange for only that portion of 
this temporary Regulation S Global Note in respect of which there shall
have been presented to the Note Registrar by Euroclear or Clearstream, as
applicable, a certificate substantially in the form set out in Exhibit G
to the Indenture.]

 

A-6-4

 

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

 

	
  Date:                                        

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
  TRUST
  2008-1

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its individual capacity but solely on behalf of the
  Issuer as Owner Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

A-6-5

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

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

  
	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Authorized
  Signatory

  

 

A-6-6

 

[REVERSE OF CLASS C NOTE]

 

                This Note is one of a duly
authorized issue of Notes of the Issuer, designated as its [        ]%
Motorcycle Contract, Class C (the “Class C Notes”), all issued under
an Indenture, dated as of February 15, 2008 (the “Indenture”), between the
Issuer and The Bank of New York Trust Company, N.A., as Indenture Trustee (the “Indenture
Trustee”), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the
Notes.  The Notes are subject to all
terms of the Indenture.  All terms used
in this Note that are defined in the Indenture, as supplemented or amended,
shall have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

 

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

 

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

 

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

 

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

 

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

 

A-6-7

 

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

 

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

 

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

 

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

 

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

 

A-6-8

 

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

 

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

 

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

 

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

 

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

 

A-6-9

 

SCHEDULE OF EXCHANGES IN GLOBAL NOTE

 

The following exchanges of a part of this Global
Note have been made:

 

	
  Date of 

  Exchange

  	
   

  	
  Amount of

  Decrease in Principal

  Amount of this Global

  Note

  	
   

  	
  Amount of 

  Increase in Principal

  Amount of this

  Global Note

  	
   

  	
  Principal Amount of

  this Global Note

  following such

  Decrease or Increase

  	
   

  	
  Signature of

  authorized officer

  of Indenture

  Trustee or

  securities

  custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-6-10

 

EXHIBIT B

 

FORM OF ASSIGNMENT

 

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

 

PLEASE INSERT SOCIAL SECURITY OR

OTHER
IDENTIFYING NUMBER OF ASSIGNEE

 

 

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

  
	
   

  
	
  the
  within Note, and all rights thereunder, hereby irrevocably constituting and
  appointing

  
	
   

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

  
	
   

  
	
  Dated:

  	
   

  	 

 

Signature Guaranteed:

 

 

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

  
	
   

  
	
   

  
	
  Notice: The
  signature(s) on this assignment must correspond with the name(s) 

  as it appears on the face of the within Note in every particular, without
  alteration or enlargement or any change whatsoever.

  
	
   

  
	
   

  
	
  (Authorized
  Officer)

  

 

B-1

 

EXHIBIT
C

 

FORM OF NOTE DEPOSITORY
AGREEMENT

 

C-1

 

EXHIBIT
D

 

FORM OF REGULATION S
TRANSFER CERTIFICATE

 

[Date]

 

	
  Harley-Davidson
  Motorcycle Trust 2008-1

  c/o Wilmington Trust Company

  Rodney Square North

  1100 North Market Street

  Wilmington, Delaware 19890-0001

   

  	
   

  
	
  Harley-Davidson
  Credit Corp.

  222 West Adams Street, Suite 2000

  Chicago, Illinois 60606

   

  	
   

  
	
  Harley-Davidson
  Customer Funding Corp.

  3850
  Arrowhead Drive

  Carson City, Nevada 89706

   

  	
   

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

  2 North LaSalle Street

  Suite 1020

  Chicago, Illinois 60602

   

  	
   

  

 

Re:                               Harley-Davidson Motorcycle
Trust 2008-1 

Motorcycle Contract Backed Notes, Class [    ] (the
“Notes”)

 

Ladies and Gentlemen:

 

Reference is hereby made to the Indenture,
dated as of February 15, 2008 (as amended, supplemented, or otherwise
modified from time to time, the “Indenture”), among Harley-Davidson
Motorcycle Trust 2008-1, as Issuer (the “Issuer”) and The Bank of New York Trust
Company, N.A., as indenture trustee (the “Indenture Trustee”). Capitalized terms
used but not defined herein shall have the meanings assigned to such terms in
the Indenture and, if not defined in the Indenture, then such terms shall have
the meanings assigned to them in Regulation S (“Regulation S”) or Rule 144A (“Rule 144A”)
under the United States Securities Act of 1933, as amended (the “Securities Act”),
and the rules promulgated thereunder.

 

This letter relates to the transfer of U.S.$                              
aggregate principal amount of the Notes being transferred for an equivalent
beneficial interest in a Regulation S Global Note in the name of                                                   
(the “Purchaser”).

 

In connection with such request, the Purchaser hereby certifies that
such transfer has been effected in accordance with the transfer restrictions
set forth in the Indenture and hereby represents, warrants, and agrees for the
benefit of the Issuer, Harley-Davidson Credit Corp. (the 

D-1

 

“Seller”), Harley-Davidson Customer Funding
Corp. (the “Depositor”),
and the Indenture Trustee as follows:

 

(1)           No Registration.  The Purchaser understands and acknowledges
that the Notes have not been registered under the Securities Act of 1933, as
amended (the “Securities
Act”), or any other applicable securities law, and may not be offered,
sold or otherwise transferred except in compliance with the registration
requirements of the Securities Act or pursuant to an exemption therefrom and in
accordance with the provisions of the Indenture and the legend on the
Regulation S Global Note.

 

(2)           Non-U.S. Person Status.  The Purchaser, which is taking delivery in
the form of an interest in a Regulation S Global Note, is a non-U.S. Person
purchasing for its own account or one or more accounts, each of which is a
non-U.S. Person, and as to each of which the Purchaser exercises complete
investment discretion, in an offshore transaction in accordance with Regulation
S, and is aware that the sale of the Notes to it is being made in reliance on
the exemption from registration provided by Regulation S.

 

(3)           Form of Regulation S
Global Note.  The Purchaser is
aware that, except as otherwise provided in the Indenture, the Notes being sold
to it, if any, in reliance on Regulation S will be represented either (A) on
or before the Exchange Date, by one or more temporary Regulation S Global Notes
or (B) after the Exchange Date, by one or more permanent Regulation S
Global Notes and that in each case beneficial interests therein may be held only
through Euroclear or Clearstream.

 

(4)           Temporary Regulation S
Global Note.  The Purchaser
understands that if it is a holder of a beneficial interest in a temporary
Regulation S Global Note it must provide Euroclear or Clearstream or the
participant organization through which it holds such interest, as the case may
be, with a certificate certifying that the beneficial owner of the interest in
the temporary Regulation S Global Note is a non-U.S. Person, and Euroclear or
Clearstream, as the case may be, must provide to the Indenture Trustee a
certificate to such effect, prior to (i) the payment of interest or
principal with respect to such holder’s beneficial interest in the temporary
Regulation S Global Note and (ii) any exchange of such beneficial interest
for a beneficial interest in a permanent Regulation S Global Note.

 

(5)           Additional Legends under
Regulation S.  The Purchaser,
which is taking delivery in the form of an interest in a Regulation S Global
Note, understands and agrees that additional legends in substantially the
following forms will be placed on each certificate representing such Note,
unless the Issuer determines otherwise in compliance with applicable law:

 

“AN INTEREST IN THIS NOTE MAY NOT
BE HELD BY A PERSON THAT IS A U.S. PERSON (AS DEFINED IN REGULATION S) AT ANY
TIME.”

 

“THIS REGULATION S GLOBAL NOTE IS A GLOBAL NOTE WHICH IS
EXCHANGEABLE FOR INTERESTS IN OTHER GLOBAL NOTES AND DEFINITIVE NOTES SUBJECT
TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE INDENTURE. IN ADDITION,
AN INTEREST IN THIS REGULATION S GLOBAL NOTE MAY ONLY BE HELD THROUGH
CLEARSTREAM OR EUROCLEAR AT ANY TIME.”

 

(6)           Limitation on Resale of
Interests in Regulation S Global Note.  The Purchaser understands and agrees that
before a Note in the form of an interest in the Regulation S Global 

 

D-2

 

Note may be offered, sold, pledged or otherwise
transferred to a transferee that takes delivery in the form of the Rule 144A
Global Note, the transferee will be required to provide the Indenture Trustee
with a transfer certificate in the form provided in the Indenture to the effect
that the transferee is a QIB which is acquiring the interest in the Note in the
form of the Rule 144A Global Note in a transaction meeting the requirements
of Rule 144A and in accordance with any applicable securities laws of any
state of the United States or any other relevant jurisdiction.

 

(7)           Securities Law Limitation
on Resale.  The Purchaser
agrees, on its own behalf and on behalf of any investor account for which it is
purchasing the Notes, to offer, sell or otherwise transfer such Notes only (i) in
the required minimum denominations and (ii) (a) in the form of an
interest in the Rule 144A Global Note to a Person that the Purchaser
reasonably believes is a QIB, purchasing for its own account or one or more
accounts, each of which is a Person that the Purchaser reasonably believes is a
QIB, in accordance with Rule 144A, or (b) outside the United States
in the form of an interest in the Regulation S under the Securities Act.  The Purchaser understands and agrees that a
U.S. Person may not hold an interest in a Note in the form of the Regulation S
Global Note at any time.  The Purchaser
agrees to provide written notice of such transfer restrictions to any
subsequent transferee.

 

(8)           Required Sale if Not a QIB.  The Purchaser understands that the Indenture
permits the Issuer to require any holder of a Rule 144A Global Note who is
determined not to have been the Depositor or an Affiliate thereof a QIB at the
time of acquisition of the Note, to sell such interest to a Person that is a
QIB in a transaction meeting the requirements of Rule 144A or to a Person
that is not a U.S. Person in a transaction meeting the requirements of
Regulation S.

 

(9)           No Governmental
Approval.  The Purchaser
understands that the Notes have not been approved or disapproved by the SEC or
any other governmental authority or agency of any jurisdiction, nor has the SEC
or any other governmental authority or agency passed upon the accuracy or
adequacy of the [describe offering document]. 
Any representation to the contrary is a criminal offense.

 

(10)         Minimum Denomination.  The Purchaser agrees that no Note (or any
interest therein) may be sold, pledged or otherwise transferred in a denomination
of less than $100,000 and integral multiples of $1,000 in excess thereof.

 

(11)         Limited
Liquidity.  The Purchaser
understands that there is currently no secondary market for the Notes, and
there can be no assurance  as to the
liquidity of any market that may develop for the Notes, and the ability of the
beneficial owners to sell their Notes or at what price beneficial owners of the
Notes will be able to sell their Notes. 
The Purchaser understands that no assurance can be given as to the
liquidity of or trading market for the Notes, and it may be difficult or
uneconomic for a beneficial owner of the Notes to sell its Notes at any
time.  The Purchaser is prepared to hold
its interest in the Notes for an indefinite period of time or until maturity.

 

(12)         ERISA.  The
Purchaser represents and warrants that, at all times that it owns a beneficial
interest in any Note, either (i) it is not acting on behalf of or using
any “plan assets” of an employee benefit plan within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), a
plan within the meaning of Section 4975(e)(1) of the Code, an entity
which is deemed to hold the assets of any such plan pursuant to 29 C.F.R. Section 2510.3-101
or otherwise under ERISA, which plan or entity is subject to Title I of ERISA
or Section 4975 of the Code, or a governmental or church plan which is
subject to any federal, state or local law (“Similar Law”)  that
is similar to the prohibited transaction provisions of Section 406 of
ERISA or Section 4975 of the Code (collectively, a “Plan”), or (ii) 

 

D-3

 

its acquisition and holding of such Note are
eligible for the exemption granted by U.S. Department of Labor Prohibited Transaction
Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a
similar exemption, or, in the case of a Plan subject to Similar Law, will not
constitute or result in a non-exempt prohibited transaction.

 

(13)         Certain Transfers Void.  The Purchaser agrees that (i) any sale,
pledge or other transfer of a Note (or any interest therein) made in violation
of the transfer restrictions contained in the [describe offering document]
and the Indenture, or made based upon any
false or inaccurate representation made by the Purchaser to the Issuer, the
Indenture Trustee or the Note Registrar will be void and of no force or effect
and (ii) none of the Issuer, the Indenture Trustee or the Note Registrar
has any obligation to recognize any sale, pledge or other transfer of a Note
(or any interest therein) made in violation of any such transfer restriction or
made based upon any such false or inaccurate representation.

 

(14)         Restrictive Legend.  The Purchaser understands and agrees that a
legend in substantially the following form will be placed on each certificate
representing each Note unless the Issuer determines otherwise in compliance
with applicable law:

 

“THIS NOTE HAS NOT BEEN, AND WILL NOT BE, REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER RELEVANT
JURISDICTION AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (A)(1) TO
A PERSON WHO IS A “QUALIFIED INSTITUTIONAL BUYER” (A “QIB”) WITHIN THE MEANING
OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), PURCHASING FOR ITS OWN
ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES COMPLETE
INVESTMENT DISCRETION, EACH OF WHICH IS A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QIB, OR (2) OUTSIDE THE UNITED STATES TO CERTAIN PERSONS WHO
ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT (“REGULATION
S”)) PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO
WHICH IT EXERCISES COMPLETE INVESTMENT DISCRETION, EACH OF WHICH IS NOT A U.S.
PERSON, IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS
APPLICABLE) OF REGULATION S, IN EACH CASE IN A PRINCIPAL AMOUNT OF NOT LESS
THAN $100,000 AND INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF FOR THE
PURCHASER AND FOR EACH ACCOUNT FOR WHICH IT IS ACTING, (B) IN COMPLIANCE
WITH THE CERTIFICATION AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE
REFERRED TO HEREIN AND (C) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER RELEVANT JURISDICTION.

 

NO SALE OR TRANSFER OF THIS NOTE MAY BE MADE TO A
PURCHASER WHO IS (A) ACTING ON BEHALF, OR USING ANY “PLAN ASSETS,” OF AN
EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN
WITHIN THE MEANING OF SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHICH IS DEEMED TO HOLD THE 

 

D-4

 

ASSETS OF ANY SUCH PLAN PURSUANT TO 29 C.F.R. SECTION 2510.3-101
OR OTHERWISE UNDER ERISA, WHICH PLAN OR ENTITY IS SUBJECT TO TITLE I OF ERISA
OR SECTION 4975 OF THE CODE, OR A GOVERNMENTAL OR CHURCH PLAN WHICH IS
SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW (EACH, A “SIMILAR LAW”) THAT IS
SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE (COLLECTIVELY, A “PLAN”) AND (B) ACQUIRING
OR HOLDING SUCH NOTE IN A MANNER THAT IS NOT ELIGIBLE FOR AN EXEMPTION GRANTED
BY THE DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”)
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, OR A SIMILAR EXEMPTION,
OR, IN THE CASE OF A PLAN SUBJECT TO SIMILAR LAW, THAT WOULD EITHER CONSTITUTE
OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION.

 

NO TRANSFER OF THIS NOTE (OR ANY INTEREST HEREIN) MAY BE
MADE (AND NEITHER THE INDENTURE TRUSTEE NOR THE NOTE REGISTRAR WILL RECOGNIZE
ANY SUCH TRANSFER) IF SUCH TRANSFER WOULD BE MADE TO A PERSON THAT IS OTHERWISE
UNABLE TO MAKE THE CERTIFICATIONS AND REPRESENTATIONS DEEMED TO BE MADE BY SUCH
PERSON IN THE INDENTURE REFERRED TO HEREIN. 
ACCORDINGLY, TRANSFER OF THIS NOTE IS RESTRICTED, AND AN INVESTOR IN
THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME OR UNTIL MATURITY.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO
FORCE AND EFFECT, WILL BE VOID AB INITIO, AND
WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE
NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE
TRUSTEE OR ANY INTERMEDIARY.”

 

(15)         Certain Tax Matters.  The Purchaser understands that as a condition
to the payment of principal of and interest on any Note without U.S. federal
back-up withholding, the Issuer shall require the delivery of properly
completed and signed applicable U.S. federal income tax certifications
(generally, an Internal Revenue Service Form W-9 (or applicable successor
form) in the case of a Person that is a “United States person” within the
meaning of Section 7701(a)(30) of the Code or an Internal Revenue Service Form W-8BEN
or W-8ECI (or applicable successor forms) in the case of a Person that is not a
“United States person” within the meaning of Section 7701(a)(30) of the
Code).  Additionally, the Purchaser
understands that the Issuer may require such other certifications acceptable to
it (A) to permit the Issuer to make payments to it without, or at a
reduced rate of, withholding or (B) to enable the Issuer to qualify for a
reduced rate of withholding in any jurisdiction from or through which the
Issuer receives payments on its assets. 
The Purchaser agrees to provide any such additional certification that
is requested by the Issuer.

 

(16)         Notes as Indebtedness.  The Purchaser agrees to treat the Notes as
indebtedness for all foreign, federal, state and local tax purposes.

 

(17)         Reliance on
Representations, etc.  The
Purchaser acknowledges that the Issuer, the Seller, the Depositor, the
Indenture Trustee and others will rely upon the truth and accuracy of 

 

D-5

 

the foregoing acknowledgements, representations and
agreements.  If it is acquiring any Notes
as a fiduciary or agent for one or more investor accounts, it represents that
it has complete investment discretion with respect to each such account and
that it has full power to make the foregoing acknowledgments, representations
and agreements on behalf of each such account.

 

(18)         Not Affiliate.  The Purchaser represents to the Indenture Trustee
that it is not (a) an Affiliate of any of the Issuer, the Seller or the
Depositor or (b) a “related person” (within the meaning of Section 414(b) or
(c) of the Code) of the Issuer, the Seller or the Depositor or any of
their Affiliates.  For purposes of this
paragraph, a Person is an “Affiliate”  of another
Person if such Person controls, is controlled by or is under common control
with such other Person, with the term “control” meaning the power, direct or
indirect, (i) to vote 10% or more of any class of voting securities of
such other Person or (ii) to direct or cause the direction of the
management and policies of such other Person, whether by contract or otherwise.

 

(19)         Purchaser Sophistication;
Non-Reliance.  In connection
with the purchase of the Notes, the Purchaser acknowledges that: (A) none
of the Issuer, the Seller, the Depositor, the Indenture Trustee or any of their
respective affiliates is acting as a fiduciary or financial or investment
adviser for the Purchaser; (B) the Purchaser is not relying (for purposes
of making any investment decision or otherwise) upon any advice, counsel or
representations (whether written or oral) of the Issuer, the Seller, the
Depositor or the Indenture Trustee other than any statements in the [describe
offering document]; (C) the Purchaser has consulted with its own legal,
regulatory, tax, business, investment, financial and accounting advisers to the
extent it has deemed necessary and has made its own investment decisions
(including decisions regarding the suitability of any transaction pursuant to
the Indenture) based upon its own judgment and upon any advice from such
advisers as it has deemed necessary and not upon any view expressed by the
Issuer, the Seller, the Depositor or the Indenture Trustee; and (D) the
Purchaser is a sophisticated investor and is purchasing the Notes with a full
understanding of all the terms, conditions and risks thereof and is capable of
assuming and willing to assume those risks.

 

Capitalized terms used and
not defined herein shall have the meanings assigned thereto in the Sale and
Servicing Agreement, dated as of February 15, 2008, among the Seller, the
Depositor, the Issuer and the Indenture Trustee or the Indenture, as
applicable.

 

In connection with the
foregoing representations, warranties, and covenants, the undersigned Purchaser
hereby agrees to indemnify the Issuer, the Seller, the Depositor and the
Indenture Trustee against any liability that may result or arise from such
undersigned Purchaser’s breach or default of the foregoing representations,
warranties, and covenants.

 

You are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceedings
or official inquiry with respect to the matters covered hereby.

 

D-6

 

IN WITNESS WHEREOF, the
undersigned Purchaser has caused this Transfer Certificate to be duly executed
by its officer or attorney-in-fact, as the case may be, thereunto duly
authorized, as of this         th
day of                                   ,
20      .

 

[PURCHASER]

 

 

	
  By:

  	
   

  
	
  Name:

  
	
  Title:

  
	
  Date:

  

 

	
  Aggregate
  amount

  	 

	
  of
  Notes: U.S.$

  	
   

  	 

	
  Taxpayer
  identification number:

  	 

	 
	
  Address
  for notices:

  	
  Wire
  transfer information for payments:

  
	 
	
  Telephone:

  Facsimile:

  Attention:

  	
  Bank:

  Address:

  Bank ABA#:

  Account #:

  FAO:

  Attention:

  
	 
	
  Registered
  name:

  	
   

  
					

 

D-7

EXHIBIT E

 

FORM OF RULE 144A
TRANSFER CERTIFICATE

 

	
  [Date]

  	
   

  	
   

  

 

 

Harley-Davidson
Motorcycle Trust 2008-1

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

 

Harley-Davidson
Credit Corp.

222 West Adams Street, Suite 2000

Chicago, Illinois 60606

 

Harley-Davidson
Customer Funding Corp.

3850
Arrowhead Drive

Carson City, Nevada 89706

 

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

2 North LaSalle Street

Suite 1020

Chicago, Illinois 60602

 

Re:                               Harley-Davidson Motorcycle
Trust 2008-1 

Motorcycle Contract Backed Notes, Class [    ]
(the “Notes”)

 

Ladies and Gentlemen:

 

Reference is hereby made to
the Indenture, dated as of February 15, 2008 (as amended, supplemented, or
otherwise modified from time to time, the “Indenture”), among Harley-Davidson
Motorcycle Trust 2008-1, as Issuer (the “Issuer”) and The Bank of New York Trust
Company, N.A., as indenture trustee (the “Indenture Trustee”). Capitalized terms
used but not defined herein shall have the meanings assigned to such terms in
the Indenture and, if not defined in the Indenture, then such terms shall have
the meanings assigned to them in Regulation S (“Regulation S”) or Rule 144A (“Rule 144A”)
under the United States Securities Act of 1933, as amended (the “Securities Act”),
and the rules promulgated thereunder.

 

This letter relates to the
transfer of U.S.$                              
aggregate principal amount of the Notes being transferred for an equivalent
beneficial interest in a Rule 144A Global Note in the name of                                                   
(the “Purchaser”).

 

In connection with such request, the Purchaser hereby
certifies that such transfer has been effected in accordance with the transfer
restrictions set forth in the Indenture and hereby 

 

E-1

 

represents,
warrants, and agrees for the benefit of the Issuer, Harley-Davidson Credit
Corp. (the “Seller”),
Harley-Davidson Customer Funding Corp. (the “Depositor”) and the Indenture Trustee
as follows:

 

(1)   No Registration.  The Purchaser understands and acknowledges
that the Notes have not been registered under the Securities Act of 1933, as
amended (the “Securities
Act”), or any other applicable securities law, and may not be offered,
sold or otherwise transferred except in compliance with the registration
requirements of the Securities Act or pursuant to an exemption therefrom and in
accordance with the provisions of the Indenture and the legend on the Rule 144A
Global Note.

 

(2)   QIB.  The Purchaser
is purchasing the Note for its own account or one or more accounts with respect
to which it exercises complete investment discretion, in each case in the
required minimum denominations, and both it and each such account (if any) (i) is
a “qualified institutional buyer” as defined in Rule 144A
promulgated under the Securities Act (a “QIB”) and (ii) is aware that any sale of the Notes to it will be made in
reliance on Rule 144A.

 

(3)   Securities Law Limitation
on Resale.  The Purchaser
agrees, on its own behalf and on behalf of any investor account for which it is
purchasing the Notes, to offer, sell or otherwise transfer such Notes only (i) in
the required minimum denominations and (ii) (a) in the form of an
interest in the Rule 144A Global Note to a Person that the Purchaser
reasonably believes is a QIB, purchasing for its own account or one or more
accounts, each of which is a Person that the Purchaser reasonably believes is a
QIB, in accordance with Rule 144A, or (b) outside the United States
in the form of an interest in the Regulation S under the Securities Act.  The Purchaser understands and agrees that a
U.S. Person may not hold an interest in a Note in the form of the Regulation S
Global Note at any time.  The Purchaser
agrees to provide written notice of such transfer restrictions to any
subsequent transferee.

 

(4)   Required Sale if Not a QIB.  The Purchaser understands that the Indenture
permits the Issuer to require any holder of a Rule 144A Global Note who is
determined not to have been the Depositor or an Affiliate thereof a QIB at the
time of acquisition of the Note, to sell such interest to a Person that is a
QIB in a transaction meeting the requirements of Rule 144A or to a Person
that is not a U.S. Person in a transaction meeting the requirements of
Regulation S.

 

(5)   No
Governmental Approval.  The
Purchaser understands that the Notes have not been approved or disapproved by
the SEC or any other governmental authority or agency of any jurisdiction, nor
has the SEC or any other governmental authority or agency passed upon the
accuracy or adequacy of the [describe offering document].  Any representation to the contrary is a
criminal offense.

 

(6)   Minimum Denomination.  The Purchaser agrees that no Note (or any
interest therein) may be sold, pledged or otherwise transferred in a
denomination of less than $100,000 and integral multiples of $1,000 in excess
thereof.

 

(7)   Limited
Liquidity.  The Purchaser
understands that there is currently no secondary market for the Notes, and
there can be no assurance  as to the
liquidity of any market that may develop for the Notes, and the ability of the
beneficial owners to sell their Notes or at what price beneficial owners of the
Notes will be able to sell their Notes. 
The Purchaser understands that no assurance can be given as to the
liquidity of or trading market for the Notes, and it may be difficult or
uneconomic for a beneficial owner of the Notes to sell its Notes at any
time.  The Purchaser is prepared to hold
its interest in the Notes for an indefinite period of time or until maturity.

 

E-2

 

(8)           ERISA.  The
Purchaser represents and warrants that, at all times that it owns a beneficial
interest in any Note, either (i) it is not acting on behalf of or using any
“plan assets” of an employee benefit plan within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), a
plan within the meaning of Section 4975(e)(1) of the Code, an entity
which is deemed to hold the assets of any such plan pursuant to 29 C.F.R. Section 2510.3-101
or otherwise under ERISA, which plan or entity is subject to Title I of ERISA
or Section 4975 of the Code, or a governmental or church plan which is
subject to any federal, state or local law (“Similar Law”)  that
is similar to the prohibited transaction provisions of Section 406 of
ERISA or Section 4975 of the Code (collectively, a “Plan”), or (ii) its
acquisition and holding of such Note are eligible for the exemption granted by
U.S. Department of Labor Prohibited Transaction Class Exemption (“PTCE”)
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption,
or, in the case of a Plan subject to Similar Law, will not constitute or result
in a non-exempt prohibited transaction.

 

(9)           Certain Transfers Void.  The Purchaser agrees that (i) any sale,
pledge or other transfer of a Note (or any interest therein) made in violation
of the transfer restrictions contained in the [describe offering document]
and the Indenture, or made based upon any
false or inaccurate representation made by the Purchaser to the Issuer, the
Indenture Trustee or the Note Registrar will be void and of no force or effect
and (ii) none of the Issuer, the Indenture Trustee or the Note Registrar
has any obligation to recognize any sale, pledge or other transfer of a Note
(or any interest therein) made in violation of any such transfer restriction or
made based upon any such false or inaccurate representation.

 

(10)         Restrictive Legend.  The Purchaser understands and agrees that a
legend in substantially the following form will be placed on each certificate
representing each Note unless the Issuer determines otherwise in compliance
with applicable law:

 

“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER RELEVANT JURISDICTION AND MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (A)(1) TO A PERSON WHO IS A “QUALIFIED
INSTITUTIONAL BUYER” (A “QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”), PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE
ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES COMPLETE INVESTMENT DISCRETION,
EACH OF WHICH IS A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB, (2) OUTSIDE
THE UNITED STATES TO CERTAIN PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”)) PURCHASING FOR ITS OWN
ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES COMPLETE INVESTMENT
DISCRETION, EACH OF WHICH IS NOT A U.S. PERSON OR (3) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT, IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S, IN EACH CASE IN A
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND INTEGRAL MULTIPLES OF $1,000 IN
EXCESS THEREOF FOR THE PURCHASER AND FOR EACH ACCOUNT FOR WHICH IT IS ACTING, (B) IN
COMPLIANCE WITH THE CERTIFICATION AND OTHER REQUIREMENTS SPECIFIED IN THE
INDENTURE REFERRED TO HEREIN AND (C) IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES 

 

E-3

 

LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER
RELEVANT JURISDICTION.

 

NO SALE OR TRANSFER OF THIS NOTE MAY BE MADE TO A
PURCHASER WHO IS (A) ACTING ON BEHALF, OR USING ANY “PLAN ASSETS,” OF AN
EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN
WITHIN THE MEANING OF SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHICH IS DEEMED TO HOLD THE ASSETS
OF ANY SUCH PLAN PURSUANT TO 29 C.F.R. SECTION 2510.3-101 OR OTHERWISE
UNDER ERISA, WHICH PLAN OR ENTITY IS SUBJECT TO TITLE I OF ERISA OR SECTION 4975
OF THE CODE, OR A GOVERNMENTAL OR CHURCH PLAN WHICH IS SUBJECT TO ANY FEDERAL,
STATE OR LOCAL LAW (EACH, A “SIMILAR LAW”) THAT IS SIMILAR TO THE PROHIBITED
TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE
CODE (COLLECTIVELY, A “PLAN”) AND (B) ACQUIRING OR HOLDING SUCH NOTE IN A
MANNER THAT IS NOT ELIGIBLE FOR AN EXEMPTION GRANTED BY THE DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 90-1, PTCE
91-38, PTCE 95-60, PTCE 96-23, OR A SIMILAR EXEMPTION, OR, IN THE CASE OF A
PLAN SUBJECT TO SIMILAR LAW, THAT WOULD EITHER CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION.

 

NO TRANSFER OF THIS NOTE (OR ANY INTEREST HEREIN) MAY BE
MADE (AND NEITHER THE INDENTURE TRUSTEE NOR THE NOTE REGISTRAR WILL RECOGNIZE
ANY SUCH TRANSFER) IF SUCH TRANSFER WOULD BE MADE TO A PERSON THAT IS OTHERWISE
UNABLE TO MAKE THE CERTIFICATIONS AND REPRESENTATIONS DEEMED TO BE MADE BY SUCH
PERSON IN THE INDENTURE REFERRED TO HEREIN. 
ACCORDINGLY, TRANSFER OF THIS NOTE IS RESTRICTED, AND AN INVESTOR IN
THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME OR UNTIL MATURITY.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO
FORCE AND EFFECT, WILL BE VOID AB INITIO, AND
WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE
NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE INDENTURE
TRUSTEE OR ANY INTERMEDIARY.”

 

(11)         Certain Tax Matters.  The Purchaser understands that as a condition
to the payment of principal of and interest on any Note without U.S. federal
back-up withholding, the Issuer shall require the delivery of properly
completed and signed applicable U.S. federal income tax certifications
(generally, an Internal Revenue Service Form W-9 (or applicable successor
form) in the case of a Person that is a “United States person” within the
meaning of Section 7701(a)(30) of the Code or an Internal Revenue Service Form W-8BEN
or W-8ECI (or applicable successor forms) in the case of a Person that is not a
“United States person” within the meaning of Section 7701(a)(30) of the
Code).  Additionally, the Purchaser
understands that the Issuer may require such other certifications acceptable to
it (A) to permit the Issuer to make payments to it without, or at a
reduced rate of, withholding or (B) to enable the Issuer to qualify 

 

E-4

 

for a reduced rate of withholding in any
jurisdiction from or through which the Issuer receives payments on its
assets.  The Purchaser agrees to provide
any such additional certification that is requested by the Issuer.

 

(12) Notes as Indebtedness.  The Purchaser agrees to treat the Notes as
indebtedness for all foreign, federal, state and local tax purposes.

 

(13) Reliance on Representations, etc.  The Purchaser acknowledges that the Issuer,
the Seller, the Depositor, the Indenture Trustee and others will rely upon the
truth and accuracy of the foregoing acknowledgements, representations and
agreements.  If it is acquiring any Notes
as a fiduciary or agent for one or more investor accounts, it represents that
it has complete investment discretion with respect to each such account and
that it has full power to make the foregoing acknowledgments, representations
and agreements on behalf of each such account.

 

(14) Not Affiliate.  The Purchaser represents to the Indenture
Trustee that it is not (a) an Affiliate of any of the Issuer, the Seller
or the Depositor or (b) a “related person” (within the meaning of Section 414(b) or
(c) of the Code) of the Issuer, the Seller or the Depositor or any of
their Affiliates.  For purposes of this
paragraph, a Person is an “Affiliate”  of another
Person if such Person controls, is controlled by or is under common control
with such other Person, with the term “control” meaning the power, direct or
indirect, (i) to vote 10% or more of any class of voting securities of
such other Person or (ii) to direct or cause the direction of the
management and policies of such other Person, whether by contract or otherwise.

 

(15) Purchaser Sophistication; Non-Reliance.  In connection with the purchase of
the Notes, the Purchaser acknowledges that: (A) none of the Issuer, the
Seller, the Depositor, the Indenture Trustee or any of their respective
affiliates is acting as a fiduciary or financial or investment adviser for the
Purchaser; (B) the Purchaser is not relying (for purposes of making any
investment decision or otherwise) upon any advice, counsel or representations
(whether written or oral) of the Issuer, the Seller, the Depositor or the Indenture
Trustee other than any statements in the [describe offering document]; (C) the
Purchaser has consulted with its own legal, regulatory, tax, business,
investment, financial and accounting advisers to the extent it has deemed
necessary and has made its own investment decisions (including decisions
regarding the suitability of any transaction pursuant to the Indenture) based
upon its own judgment and upon any advice from such advisers as it has deemed
necessary and not upon any view expressed by the Issuer, the Seller, the
Depositor or the Indenture Trustee; and (D) the Purchaser is a
sophisticated investor and is purchasing the Notes with a full understanding of
all the terms, conditions and risks thereof and is capable of assuming and
willing to assume those risks.

 

Capitalized terms used and
not defined herein shall have the meanings assigned thereto in the Sale and
Servicing Agreement, dated as of February 15, 2008, among the Seller, the
Depositor, the Issuer and the Indenture Trustee or the Indenture, as
applicable.

 

In connection with the
foregoing representations, warranties, and covenants, the undersigned Purchaser
hereby agrees to indemnify the Issuer, the Seller, the Depositor and the
Indenture Trustee against any liability that may result or arise from such
undersigned Purchaser’s breach or default of the foregoing representations,
warranties, and covenants.

 

E-5

 

You are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceedings
or official inquiry with respect to the matters covered hereby.

 

E-6

 

IN WITNESS WHEREOF, the
undersigned Purchaser has caused this Transfer Certificate to be duly executed
by its officer or attorney-in-fact, as the case may be, thereunto duly
authorized, as of this         th
day of                                   ,
20      .

 

	
   

  	
   

  	
  [PURCHASER]

  

 

	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
  Date:

  

 

Aggregate
amount

	
  of Notes: U.S.

  	
  $

  	
   

  	
   

  

Taxpayer
identification number:

	
  Address
  for notices:

  	
   

  	
  Wire
  transfer information for payments:

  
	
   

  	
   

  	
  Bank:
  

  
	
   

  	
   

  	
  Address:
  

  
	
   

  	
   

  	
  Bank
  ABA#: 

  
	
  Telephone:
  

  	
   

  	
  Account#:
  

  
	
  Facsimile:
  

  	
   

  	
  FAO:
  

  
	
  Attention:

  	
   

  	
  Attention:

  
	
  Registered
  name:

  	
   

  	
   

  

 

E-7

 

EXHIBIT F

 

FORM OF NON-U.S. CERTIFICATE

 

Re:                               Harley-Davidson
Motorcycle Trust 2008-1

Motorcycle Contract Backed Notes, Class [    ]

 

 

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

as Note Registrar

 

 

This is to certify that, based solely on certifications we have
received in writing, by tested telex or by electronic transmission from member organizations appearing in our records as
Persons being entitled to a portion
of the principal amount of the Notes set forth below (our “Member
Organizations”) substantially to the effect set forth in the Indenture,
dated as of February 15, 2008 (the “Indenture”), between Harley-Davidson
Motorcycle Trust 2008-1, a Delaware statutory trust, as Issuer and The Bank of New York Trust Company, N.A.,
as Indenture Trustee, U.S.$                                  
initial aggregate principal amount of the Motorcycle Contract Backed Notes, Class [    ]
(the “Notes”)
held by us or on our behalf are beneficially owned by non-U.S. person(s).  As used in this paragraph, the term “U.S. person”
has the meaning given to it by Regulation S under the United States Securities
Act of 1933, as amended.  Capitalized
terms used herein and not otherwise defined have the meanings set forth in the
Indenture.

 

We further certify that as of the date hereof we have not received any
notification from any of our Member Organizations to the effect that the
statements made by such Member Organizations with respect to any interest in
the Series 2008-1 Notes identified above are no longer true and cannot be
relied upon as of the date hereof.

 

[On the Exchange Date:  We hereby
acknowledge that no portion of the temporary Regulation S Global Note shall be exchanged for an interest in the permanent
Regulation S Global Note with respect to the portion thereof for which we have
not received the applicable certifications from our Member Organization.](1)

 

[On [insert applicable
Payment Date] and upon any other payments under the temporary Regulation S
Global Note:  We hereby agree to hold
(and return to the Paying Agent upon request) any payments received by us on
the temporary Regulation S Global Note with respect to the portion thereof for
which we have not received the applicable certifications from our Member
Organizations.](2)

(1)   Select
as applicable.

 

(2)   Select
as applicable.

 

F-1

 

We understand that this certification is required in connection with
certain securities laws of the United States of America.  In connection therewith, if administrative or
legal proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification to any interested party in such proceedings.

 

	
  Dated:

  	
   

  	
  **

  

 

	
   

  	
   

  	
  [EUROCLEAR BANK S.A./N.V., as

  
	
   

  	
   

  	
  Operator of the Euroclear System]

  
	
   

  	
   

  	
  Or

  
	
   

  	
   

  	
  [CLEARSTREAM BANKING, société anonyme]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

**   Insert Exchange Date or applicable Payment Date,
as the case may be.

 

F-2

 

EXHIBIT G

 

FORM OF REGULATION S CERTIFICATE

 

Re:                               Harley-Davidson
Motorcycle Trust 2008-1

Motorcycle Contract Backed Notes, Class [    ]

 

[Euroclear Bank S.A./N.V., as operator of the Euroclear
System] 

[Clearstream Banking, société anonyme]

 

Notes, CUSIP No. [·], ISIN No. [·]

 

 

Reference is hereby made to the Indenture, dated as of February 15,
2008 (the “Indenture”), between
Harley-Davidson Motorcycle Trust 2008-1, a Delaware statutory trust, as Issuer
and The Bank of New York Trust Company, N.A., as Indenture Trustee.  Capitalized terms used herein and not
otherwise defined have the meanings set forth in the Indenture.

 

[For purposes of acquiring a beneficial interest in the permanent Regulation
S Global Note upon the occurrence of the Exchange Date,] [For purposes of
receiving payments under the temporary Regulation S Global Note,](3) the
undersigned holder of a beneficial interest in the temporary Regulation S
Global Note issued under the Indenture certifies that it is not a U.S. person
as defined by Regulation S under the Securities Act of 1933, as amended.

 

We undertake to advise you promptly by telex on or prior to the date on
which you intend to submit your corresponding certification relating to the
Notes held by you if any applicable statement herein is not correct on such
date, and in the absence of any such notification it may be assumed that this
certificate applies as of such date.

(3)   Select as applicable.

 

G-1

 

We understand that this certificate is required in connection with
certain securities laws of the United States. 
In connection therewith, if administrative or legal proceedings are
commenced or threatened in connection with which this certificate is or would
be relevant, we irrevocably authorize you to produce this certificate to any
interested party in such proceeding.

 

 

	
   

  	
   

  	
  Dated:

  	
                                 

  	
  ,

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  as, or as agent for, the holder of a beneficial interest in the Notes
  to which this certificate relates

  

 

G-2Exhibit 10.1

 

 

TRANSFER AND SALE AGREEMENT

 

by and between

 

HARLEY-DAVIDSON CREDIT CORP.,

 

as Seller

 

and

 

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,

 

as Purchaser

 

Dated as of February 15, 2008

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITION

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  GENERAL

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II TRANSFER OF CONTRACTS; ASSIGNMENT OF AGREEMENT

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  CLOSING

  	
  1

  
	
  SECTION 2.02.

  	
  CONDITIONS TO
  THE CLOSING

  	
  2

  
	
  SECTION 2.03.

  	
  ASSIGNMENT OF
  AGREEMENT

  	
  3

  
	
  SECTION 2.04.

  	
  [INTENTIONALLY
  OMITTED]

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND WARRANTIES

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING SELLER

  	
  4

  
	
  SECTION 3.02.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING EACH CONTRACT

  	
  5

  
	
  SECTION 3.03.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING THE CONTRACTS IN THE AGGREGATE

  	
  8

  
	
  SECTION 3.04.

  	
  REPRESENTATIONS
  AND WARRANTIES REGARDING THE CONTRACT FILES

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV PERFECTION OF TRANSFER AND PROTECTION OF
  SECURITY INTERESTS

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  CUSTODY OF
  CONTRACTS

  	
  9

  
	
  SECTION 4.02.

  	
  FILING

  	
  9

  
	
  SECTION 4.03.

  	
  NAME CHANGE OR
  RELOCATION

  	
  9

  
	
  SECTION 4.04.

  	
  COSTS AND
  EXPENSES

  	
  10

  
	
  SECTION 4.05

  	
  SALE TREATMENT

  	
  10

  
	
  SECTION 4.06

  	
  SEPARATENESS
  FROM TRUST DEPOSITOR

  	
  10

  
	
  SECTION 4.07

  	
  PROTECTION OF
  SECURITY INTERESTS

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE V REMEDIES UPON MISREPRESENTATION

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  REPURCHASES OF
  CONTRACTS FOR BREACH OF REPRESENTATIONS AND WARRANTIES

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI INDEMNITIES

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  SELLER
  INDEMNIFICATION

  	
  11

  
	
  SECTION 6.02.

  	
  LIABILITIES TO
  OBLIGORS

  	
  11

  
	
  SECTION 6.03.

  	
  TAX
  INDEMNIFICATION

  	
  11

  
	
  SECTION 6.04.

  	
  OPERATION OF
  INDEMNITIES

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  PROHIBITED
  TRANSACTIONS WITH RESPECT TO THE TRUST

  	
  12

  
	
  SECTION 7.02.

  	
  MERGER OR
  CONSOLIDATION

  	
  12

  
	
  SECTION 7.03.

  	
  TERMINATION

  	
  13

  
	
  SECTION 7.04.

  	
  ASSIGNMENT OR
  DELEGATION BY SELLER

  	
  13

  
	
  SECTION 7.05.

  	
  AMENDMENT

  	
  13

  
	
  SECTION 7.06.

  	
  NOTICES

  	
  14

  
	
  SECTION 7.07.

  	
  MERGER AND
  INTEGRATION

  	
  14

  
	
  SECTION 7.08.

  	
  HEADINGS

  	
  14

  
	
  SECTION 7.09.

  	
  GOVERNING LAW

  	
  14

  

 

i

 

	
  EXHIBITS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Assignment

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of Officer’s Certificate

  	
   

  

 

ii

 

THIS
AGREEMENT, dated as of February 15, 2008, is made by and
between Harley-Davidson Credit Corp., a Nevada corporation, as seller hereunder
(together with its successors and assigns “Harley-Davidson Credit” or “Seller”), and Harley-Davidson Customer Funding Corp., a
Nevada corporation and wholly-owned subsidiary of Seller (together with its
successors and assigns “Trust Depositor”),
as purchaser hereunder.

 

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

 

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

 

WHEREAS, Trust
Depositor intends concurrently with its purchase of Contract Assets hereunder
to convey all right, title and interest in such Contract Assets to
Harley-Davidson Motorcycle Trust 2008-1 (the “Trust”)
pursuant to the Sale and Servicing Agreement dated as of February 15, 2008
by and among Trust Depositor, Harley-Davidson Credit, as Servicer, the Trust,
as issuer (the “Issuer”) and The Bank of New
York Trust Company, N.A., as Indenture Trustee (as amended, supplemented or
otherwise modified from time to time, the “Sale and Servicing
Agreement”), executed concurrently herewith;

 

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

 

ARTICLE I

 

DEFINITIONS

 

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

 

ARTICLE II

 

TRANSFER OF CONTRACTS; ASSIGNMENT OF AGREEMENT

 

Section 2.01.        Closing.  Subject to and upon the terms and conditions
set forth in this Agreement, Seller hereby sells, transfers, assigns, sets over
and otherwise conveys to Trust Depositor, in consideration of Trust Depositor’s
payment of $486,000,000 (less fees and expenses in connection with the offering
and sale of the Class A Notes and certain deposits to the Reserve Fund on
the Closing Date) in cash as the purchase price therefor, (i) all the
right, title and interest of Seller in and to the Contracts listed on the List
of Contracts in effect on the Closing Date (including, without limitation, all
security interests and all rights to receive payments which are collected
pursuant thereto after the 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
Seller under any physical damage or other individual insurance policy
(including a “forced placed” policy, if any),
any debt insurance policy or any debt cancellation agreement relating to any
such Contract, an Obligor or a 

 

 

Motorcycle securing such Contract, (iii) all
security interests in each such Motorcycle, (iv) all documents contained
in the related Contract Files, (v) all rights of Seller in the Lockbox,
Lockbox Account and related Lockbox Agreement to the extent they relate to the
Contracts, (vi) all rights (but not the obligations) of the Seller under
any motorcycle dealer agreements between the dealers (i.e. originators of
certain Contracts) and the Seller, (vii) all rights of Seller to certain
rebates of premiums and other amounts relating to insurance policies, debt
cancellation agreements, extended service contracts or other repair agreements
and other items financed under such Contracts and (viii) all proceeds and
products of the foregoing (items (i) - (viii), being collectively referred
to herein as the “Contract Assets”).  Although Seller and Trust Depositor agree
that any such transfer is intended to be a sale of ownership in the Contract
Assets, rather than the mere granting of a security interest to secure a
borrowing, in the event such transfer is deemed to be of a mere security
interest to secure indebtedness, Seller shall be deemed to have granted Trust
Depositor a perfected first priority security interest in such Contract Assets
and this Agreement shall constitute a security agreement under applicable
law.  If such transfer is deemed to be
the mere granting of a security interest to secure a borrowing, Trust Depositor
may, to secure Trust Depositor’s own borrowing under the Sale and Servicing
Agreement (to the extent that the transfer of the Contract Assets thereunder is
deemed to be a mere granting of a security interest to secure a borrowing)
repledge and reassign (i) all or a portion of the Contract Assets pledged
to Trust Depositor and not released from the security interest of this
Agreement at the time of such pledge and assignment, and (ii) all proceeds
thereof.  Such repledge and reassignment
may be made by Trust Depositor with or without a repledge and reassignment by
Trust Depositor of its rights under this Agreement, and without further notice
to or acknowledgment from Seller.  Seller
waives, to the extent permitted by applicable law, all claims, causes of action
and remedies, whether legal or equitable (including any right of setoff),
against Trust Depositor or any assignee of Trust Depositor relating to such
action by Trust Depositor in connection with the transactions contemplated by
the Sale and Servicing Agreement.  To the
extent the cash purchase price for the Contract Assets sold by the Seller to the
Trust Depositor is less than the principal balance of the Contracts as of the
Cutoff Date, the difference shall be deemed to be a capital contribution by the
Seller to the Trust Depositor.

 

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

 

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

 

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

 

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

 

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

 

(e)           Copies of
resolutions of the Board of Directors of Seller or of the Executive Committee
of the Board of Directors of Seller approving the execution, delivery and
performance 

 

2

 

of
this Agreement and the transactions contemplated hereunder, certified in each
case by the Secretary or an Assistant Secretary of Seller.

 

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

 

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

 

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

 

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

 

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

 

Section 2.04.        [Intentionally Omitted].

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

Seller
makes the following representations and warranties, on which Trust Depositor
will rely in purchasing the Contract Assets on the Closing Date and
concurrently reconveying the same to the Trust, and on which the Trust, the
Indenture Trustee and the Noteholders will rely under the Sale and Servicing
Agreement.  Such representations speak as
of the execution and delivery of this Agreement and as of the Closing Date, but
shall survive the sale, transfer and assignment of the Contracts to the Trust
and the pledge of the Contracts to the Indenture Trustee.  The repurchase obligation of Seller set forth
in Section 5.01 below and in Section 7.08 of the Sale and Servicing
Agreement constitutes the sole remedy available for a breach of a
representation or warranty of Seller set forth in Section 3.02, 3.03 or
3.04 of this Agreement.

 

3

 

Section 3.01.        Representations and Warranties Regarding
Seller.  Seller represents and warrants,
as of the execution and delivery of this Agreement and as of the Closing Date,
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
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 

 

4

 

reorganization or otherwise, and has not changed its state of
incorporation, within the four months preceding the Closing Date.

 

(g)           Operations. 
Approximately 5.00% of the aggregate principal balance of contracts
financed from time to time by the Seller are secured by motorcycles
manufactured by Buell.

 

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

 

Section 3.02.        Representations and Warranties Regarding
Each Contract.  Seller
represents and warrants as to each Contract as of the execution and delivery of
this Agreement and as of the Closing Date 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.

 

(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 

 

5

 

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.

 

(l)            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, 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.

 

6

 

(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.

 

(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
3.000%.  Each Contract amortizes the
amount financed 

 

7

 

over an original term no greater than 84 months.  Each Contract has a Principal Balance of at
least $500.00 as of the Cutoff Date.

 

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

 

(a)           Amounts. 
The sum of 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 no
later than May 2015.  Approximately
78.54% of the Principal Balance of the Contracts as of the Cutoff Date is
attributable to loans for purchases of new Motorcycles and approximately 21.46%
is attributable to loans for purchases of used Motorcycles.  No Contract was originated after the Cutoff
Date.  Approximately 99.11% 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 0.89% 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, are owned by the Trust and constitute
security for the Notes.

 

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

 

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

 

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

 

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

 

Section 3.04.        Representations and Warranties Regarding
the Contract Files.  Seller
represents and warrants as of the execution and delivery of this Agreement and
as of the Closing Date that:

 

8

 

(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 this Agreement and
by Trust Depositor pursuant to the Sale and Servicing Agreement is not subject
to the bulk transfer or any similar statutory provisions in effect in any
applicable jurisdiction.

 

ARTICLE IV

 

PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

 

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

 

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

 

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

 

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

 

9

 

financing statements or amendments necessary to preserve and protect
the interests of the Trust Depositor and the Trust in the Contract Assets have
been filed, and reciting the details of such filing.

 

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

 

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

 

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

 

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

 

ARTICLE V

 

REMEDIES UPON MISREPRESENTATION

 

Section 5.01.        Repurchases of Contracts for Breach of
Representations and Warranties.  Seller hereby agrees, for the benefit of the
Issuer, the Indenture Trustee and the Trust Depositor, that it shall repurchase
a Contract (together with all related Contract Assets), at its Repurchase
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 Trust Depositor, either of the Trustees or the
Servicer of any breach of a representation or warranty of Seller set forth in Article III
of this Agreement that materially adversely affects Trust Depositor’s or the
Trust’s interest in such Contract (without regard to the benefits of the
Reserve Fund) and which breach has not been cured; provided,
however, that with respect to any Contract described on the List of
Contracts with respect to an incorrect unpaid Principal Balance which Seller
would otherwise be required to repurchase pursuant to this Section 5.01
and Section 7.08 of the Sale and Servicing Agreement, Seller may, in lieu
of repurchasing such Contract, deposit in the Collection Account not later than
one Business Day prior to such Distribution Date cash in an amount sufficient
to cure any deficiency or discrepancy; and provided further
that with respect to a breach of a representation or warranty relating to the
Contracts in the aggregate and not to any particular Contract, Seller may
select Contracts (without adverse selection) to repurchase such that had such
Contracts not been reconveyed by Trust Depositor and included as part of the
Trust there would have been no breach of such representation or warranty; provided further that the failure to maintain perfection of
the security interest in the Motorcycle securing a Contract in accordance with
the Sale and Servicing Agreement, shall be deemed to be a breach materially and
adversely affecting the Trust’s interest in the Contracts or in the 

 

10

 

related Contract Assets.  Notwithstanding any other provision of this
Agreement, the obligation of Seller under this Section 5.01 and under Section 7.08
of the Sale and Servicing Agreement shall not terminate upon a Service Transfer
pursuant to Article VIII of the Sale and Servicing Agreement.

 

ARTICLE VI

 

INDEMNITIES

 

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

 

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

 

Section 6.03.        Tax Indemnification.  Seller covenants and agrees to pay, and to
indemnify, defend and hold harmless the Trust Depositor, the Trust, the
Trustees or the Noteholders from, 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 not
including any federal, state or other taxes arising out of the creation of the
Trust and the issuance of the Notes) and costs, expenses and reasonable counsel
fees in defending against the same, whether arising by reason of the acts to be
performed by Seller under this Agreement or the Servicer under the Sale and
Servicing Agreement or imposed against the Trust Depositor, the Trust, a
Noteholder or otherwise.  Notwithstanding
any other provision of this Agreement, the obligation of Seller under this Section 6.03
shall not terminate upon a Service Transfer pursuant to Article VIII of
the Sale and Servicing Agreement and shall survive any termination of this
Agreement.

 

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

 

11

 

ARTICLE VII

 

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12

 

provided, however, that such
action shall not, as evidenced by an Opinion of Counsel for Seller acceptable
to the Trustees, adversely affect the interests of any Noteholder.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

[signature page follows]

 

14

 

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

 

	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING CORP.

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Perry A Glassgow

  
	
   

  	
  Printed Name: 

  	
  Perry
  A. Glassgow

  
	
   

  	
  Title: 

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
  HARLEY-DAVIDSON
  CREDIT CORP.

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Perry A Glassgow

  
	
   

  	
  Printed Name: 

  	
  Perry
  A. Glassgow

  
	
   

  	
  Title: 

  	
  Vice
  President and Treasurer

  

 

Signature
Page to Transfer and Sale Agreement

 

 

Exhibit A

Transfer and Sale

Agreement

 

FORM OF ASSIGNMENT

 

In
accordance with the Transfer and Sale Agreement (the “Agreement”)
dated as of February 15, 2008 made by and between the undersigned, as
seller thereunder (“Seller”), and
Harley-Davidson Customer Funding Corp., a Nevada corporation and wholly-owned
subsidiary of Seller (“Trust Depositor”),
as purchaser thereunder, the undersigned does hereby sell, transfer, convey and
assign, set over and otherwise convey to Trust Depositor (i) all the
right, title and interest of Seller in and to the Contracts listed on the List
of Contracts in effect on the Closing Date (including, without limitation, all
security interests and all rights to receive payments which are collected
pursuant thereto after the 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
Seller under any physical damage or other individual insurance policy
(including a “forced placed” policy, if any),
any debt insurance policy or any debt cancellation agreement relating to any
such Contract, an Obligor or a Motorcycle securing such Contract, (iii) all
security interests in each such Motorcycle, (iv) all documents contained
in the related Contract Files, (v) all rights of Seller in the Lockbox,
Lockbox Account and related Lockbox Agreement to the extent they relate to the
Contracts, (vi) all rights (but not the obligations) of the Seller under
any motorcycle dealer agreements between the dealers (i.e. originators of
certain Contracts) and the Seller, (vii) all rights of Seller to certain
rebates of premiums and other amounts relating to insurance policies, debt
cancellation agreements, extended service contracts or other repair agreements
and other items financed under such Contracts and (viii) all proceeds and
products of the foregoing

 

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

 

Capitalized
terms used herein but not otherwise defined shall have the meanings assigned to
such terms in the Sale and Servicing Agreement dated as of February 15,
2008 made by and among the undersigned, as servicer, the Trust Depositor,
Harley-Davidson Motorcycle Trust 2008-1, as issuer, and The Bank of New York
Trust Company, N.A., as indenture trustee.

 

A-1

 

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

 

	
  HARLEY-DAVIDSON CREDIT
  CORP.

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Printed
  Name:

  
	
   

  	
  Title:

  

 

A-2

 

Exhibit B

Transfer and Sale

Agreement

 

FORM OF OFFICER’S
CERTIFICATE

 

(See Exhibit C to the Sale and Servicing Agreement)

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