Document:

Exhibit
10.1

 

EXECUTION
COPY

 

AMENDMENT No. 1, dated as of December 9,
2009 (this “Amendment”), to the Second Amended and Restated Credit
Agreement, dated as of June 18, 2007 (the “Credit Agreement”),
among LPL Investment Holdings, Inc., a Delaware corporation (“Holdings”),
LPL Holdings, Inc., a Massachusetts corporation (the “Borrower”),
the lending institutions from time to time parties thereto (the “Lenders”),
Goldman Sachs Credit Partners L.P., as sole lead arranger, sole book runner and
syndication agent, Morgan Stanley Senior Funding, Inc., as Administrative
Agent, and Morgan Stanley & Co., as Collateral Agent. Capitalized
terms used but not defined herein have the meanings provided for in the Credit
Agreement.

 

WHEREAS, Section 13.1
of the Credit Agreement permits the Required Lenders or, with the consent of
the Required Lenders, the Administrative Agent to enter into certain
amendments, supplements or other modifications to the Credit Agreement and the
other Credit Documents with the relevant Credit Parties;

 

WHEREAS, the Credit Parties
desire to amend the Credit Agreement and the other Credit Documents on the
terms set forth herein;

 

NOW, THEREFORE, in
consideration of the premises and covenants contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, agree
as follows:

 

Section 1                                               Amendments.

 

(a)                                  Section 1.1 of the
Credit Agreement is hereby amended by adding the following definitions in
proper alphabetical order:

 

“Additional Lender” shall mean, at any time,
any Person (other than any such Person that is a Lender at such time) that
agrees to provide any portion of an Incremental
Term Loan Commitment, an Additional/Replacement Revolving Credit Commitment or
Incremental Revolving Credit Commitment Increase pursuant to an Incremental
Agreement in accordance with Section 2.14.

 

“Additional/Replacement Revolving Credit
Commitment” shall have the meaning provided in Section 2.14(a).

 

“Additional/Replacement Revolving Credit Facility”
shall mean each tranche of Additional/Replacement Revolving Credit Commitments
made pursuant to Section 2.14.

 

“Additional/Replacement Revolving Credit Loans”
shall mean any loan made to the Borrower under a tranche of
Additional/Replacement Revolving Credit Commitments.

 

“Additional/Replacement Revolving Credit Lender”
shall mean, at any time, any Lender that has an Additional/Replacement
Revolving Credit Commitment.

 

 

“Adjusted Total Additional/Replacement Revolving
Credit Commitment” shall mean, at any time, with respect to any tranche of
Additional/Replacement Revolving Credit Commitments, the Total
Additional/Replacement Revolving Credit Commitment for such tranche less
the aggregate Additional/Replacement Credit Commitments of all Defaulting
Lenders in such tranche.

 

“Amendment No. 1” shall mean Amendment No. 1
to this Agreement, dated as of December 9, 2009.

 

“Contractual Obligation” shall mean, as to
any Person, any provision of any security issued by such Person or of any
agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound other than the Obligations.

 

“Existing Class” shall mean Existing Term
Loan Classes and each Class of Existing Revolving Credit Commitments.

 

“Existing Revolving Credit Commitments” shall
have the meaning provided in Section 2.15(a)(ii).

 

“Existing Revolving Credit Loans” shall have
the meaning provided in Section 2.15(a)(ii).

 

“Existing Term Loan Class” shall have the
meaning provided in Section 2.15(a)(i).

 

“Extended Loans/Commitments” shall mean
Extended Term Loans, Extended Revolving Credit Loans and/or Extended Revolving
Credit Commitments.

 

“Extended Repayment Date” shall have the
meaning provided in Section 2.5(c).

 

“Extended Revolving Credit Commitments” shall
have the meaning provided in Section 2.15(a)(ii).

 

“Extended Revolving Credit Facility” shall
mean each tranche of Extended Revolving Credit Commitments established pursuant
to Section 2.15(a)(ii).

 

“Extended Revolving Credit Loans” shall have
the meaning provided in Section 2.15(a)(ii).

 

“Extended Term Loan Facility” shall mean each
tranche of Extended Term Loans made pursuant to Section 2.15.

 

“Extended Term Loan Repayment Amount” shall
have the meaning provided in Section 2.5(c).

 

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“Extended Term Loans” shall have the meaning
provided in Section 2.15(a)(i).

 

“Extending Lender” shall have the meaning
provided in Section 2.15(b).

 

“Extension Agreement” shall have the meaning
provided in Section 2.15(c).

 

“Extension Election” shall have the meaning
provided in Section 2.15(b).

 

“Extension Request” shall mean Term Loan
Extension Requests and Revolving Credit Extension Requests.

 

“Extension Series” shall mean all Extended
Term Loans and Extended Revolving Credit Commitments that are established
pursuant to the same Extension Agreement (or any subsequent Extension Agreement
to the extent such Extension Agreement expressly provides that the Extended
Term Loans or Extended Revolving Credit Commitments, as applicable, provided
for therein are intended to be a part of any previously established Extension
Series) and that provide for the same interest margins, extension fees, if any,
and amortization schedule.

 

“First Lien Obligations” shall mean the
Obligations and the Permitted Other Debt Obligations (other than any Permitted
Other Debt Obligations that are unsecured or are secured by a Lien ranking
junior to the Lien securing the Obligations), collectively.

 

“First Lien Secured Parties” shall mean the
Secured Parties and the Permitted Other Debt Secured Parties and any
representative on their behalf for such purposes (other than in the case of
Permitted Other Debt Secured Parties whose Permitted Other Debt Obligations are
unsecured or are secured by a Lien ranking junior to the Lien securing the
Obligations, such Permitted Other Debt Secured Parties and any other
representative on their behalf), collectively.

 

“Incremental
Agreement” shall have the meaning set forth in Section 2.14(e).

 

“Incremental
Facility Closing Date” shall have the meaning
provided in Section 2.14(e).

 

“Incremental Limit” shall have the meaning
provided in Section 2.14(b).

 

“Incremental
Revolving Credit Commitment Increase” shall have the meaning provided
in Section 2.14(a).

 

“Incremental
Revolving Credit Commitment Increase Lender” shall have the meaning provided
in Section 2.14(f)(i).

 

3

 

“Incremental
Term Loan Commitment” shall mean the commitment of any lender to
make Incremental Term Loans of a particular tranche pursuant to Section 2.14(a).

 

“Incremental
Term Loan Facility” shall mean each tranche of
Incremental Term Loans made pursuant to Section 2.14.

 

“Incremental Term Loan Maturity Date” shall mean, with respect
to any tranche of Incremental Term Loans made pursuant to Section 2.14,
the final maturity date thereof.

 

“Incremental
Term Loans” shall have the meaning provided in Section 2.14(a).

 

“Permitted Other Debt Documents” shall mean any
document or instrument (including any guarantee, security agreement or mortgage
and which may include any or all of the Credit Documents) issued or executed
and delivered with respect to any Permitted Other Debt by any Credit Party.

 

“Permitted Other Debt Obligations” shall
mean, if any secured Permitted Other Debt is issued or incurred, the collective
reference to (a) the due and punctual payment of (i) the principal of
and premium, if any, and interest at the applicable rate provided in the
Permitted Other Debt Documents (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the
indebtedness outstanding thereunder, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment, redemption or
otherwise and (ii) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of
any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), of the Borrower
or any other Credit Party to any of the Permitted Other Debt Secured Parties
under the Permitted Other Debt Documents and (b) the due and punctual
performance of all covenants, agreements, obligations and liabilities of the
Borrower and each other Credit Party under or pursuant to the Permitted Other
Debt Documents.

 

“Permitted Other Debt Secured Parties” shall
mean the holders from time to time of the secured Permitted Other Debt
Obligations (and any representative on their behalf).

 

“Permitted Other Debt” shall mean senior
secured or senior unsecured, senior subordinated or subordinated debt (which
debt, if secured, may either have the same lien priority as the Obligations or
may be secured by a Lien ranking junior to the Lien securing the Obligations),
in either case issued by any Credit Party, (a) the terms of which do not
provide for any scheduled repayment, mandatory redemption or sinking fund
obligations prior to, at the time of incurrence, of such Permitted Other Debt,
the latest Maturity Date of any Credit Facility outstanding on the date of such
incurrence 

 

4

 

(other than customary offers
to repurchase upon a change of control, asset sale or casualty or condemnation
event and customary acceleration rights after an event of default), (b) the
covenants, events of default, guarantees, collateral and other terms of such
Indebtedness (provided that such Indebtedness shall have interest rates,
fees, funding discounts and redemption or prepayment premiums determined by the
Borrower to be market rates, fees, discounts and premiums at the time of
issuance of such Indebtedness), taken as a whole, are determined by the
Borrower to be market terms on the date of issuance and in any event are not
more restrictive on the Borrower and its Restricted Subsidiaries than the terms
of this Agreement (as in effect on the effective date of Amendment No. 1)
and do not require the maintenance or achievement of any financial performance
standards other than as a condition to the relevant Credit Party’s right to
take specified actions under the relevant Permitted Other Debt Documents; provided
that a certificate of an Authorized Officer of the relevant Credit Party shall
be delivered to the Administrative Agent prior to the pricing (or any similar
commitment event on the part of the Credit Parties) of such Indebtedness,
together with a reasonably detailed description of the material terms and
conditions of such Indebtedness or drafts of the documentation relating
thereto, stating that the Borrower has determined in good faith that such terms
and conditions satisfy the foregoing requirements, (c) if such
Indebtedness is senior subordinated or subordinated Indebtedness, the terms of
such Indebtedness provide for customary subordination of such Indebtedness to the
Obligations, (d) if such Indebtedness is secured, such Indebtedness shall
not be secured by any property or assets other than the Collateral, (e) no
Subsidiary of the Borrower (other than a Guarantor) is an obligor under such
Indebtedness and (f) the Net Cash Proceeds from the issuance of such
Indebtedness shall be applied to repay Term Loans in accordance with the terms
of Section 5.2.

 

“Repayment Amount”  shall mean a Tranche D Term Loan Repayment
Amount, an Extended Term Loan Repayment Amount with respect to any Extension Series and
the amount of any installment of Incremental Term Loans scheduled to be repaid
on any date.

 

“Required Additional/Replacement Revolving Credit
Lenders” shall mean, with respect to each tranche of Additional/Replacement
Revolving Credit Commitments at any date, Non-Defaulting Lenders having or
holding a majority of (a) the Adjusted Total Additional/Replacement
Revolving Credit Commitment of such tranche at such date or (b) if the
Total Additional/Replacement Revolving Credit Commitment of such tranche has
been terminated at such time, the outstanding principal amount of the
Additional/Replacement Revolving Credit Loans of such tranche and the related
letter of credit exposure (excluding the letter of credit exposure of Defaulting
Lenders) in the aggregate at such date.

 

“Revolving Credit Extension Request” shall
have the meaning provided in Section 2.15(a)(ii).

 

“Section 2.15 Additional Agreement”
shall have the meaning provided in Section 2.15(c).

 

5

 

“Specified Existing Revolving Credit Commitment
Class” shall have the meaning provided in Section 2.15(a)(ii).

 

“Term Loan Extension Request” shall have the
meaning provided in Section 2.15(a)(i).

 

“Total Additional/Replacement Revolving Credit
Commitment” shall mean the sum of Additional/Replacement Revolving Credit
Commitments of all the Lenders providing any tranche of Additional/Replacement
Revolving Credit Commitments.

 

“Total Incremental Term Loan Commitment”
shall mean the sum of the Incremental Term Loan Commitments of any tranche of
Incremental Term Loans of all the Lenders providing such tranche of Incremental
Term Loans.

 

(b)                                 Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Borrowing”
contained therein and replacing it with the following:

 

““Borrowing” shall mean and include (a) the
incurrence of Swingline Loans from the Swingline Lender on a given date and (b) the
incurrence of one Class and Type of Loan on a given date (or resulting
from conversions on a given date) having a single Maturity Date and, in the
case of Eurodollar Loans, the same Interest Period (provided that ABR
Loans incurred pursuant to Section 2.10(b) shall be considered part
of any related Borrowing of Eurodollar Loans).”

 

(c)                                  Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Class”
contained therein and replacing it with the following:

 

““Class”,
when used in reference to any Loan or Borrowing, shall refer to whether such
Loan, or the Loans comprising such Borrowing, are Revolving Credit Loans,
Tranche D Term Loans, Incremental Term Loans, Extended Term Loans (of the same
Extension Series), Extended Revolving Credit Loans (of the same Extension
Series), Additional/Replacement Revolving Credit Loans (made pursuant to the
same tranche) or Swingline Loans and, when used in reference to any Commitment,
refers to whether such Commitment is a Revolving Credit Commitment, a Tranche D
Term Loan Commitment, an Incremental Term Loan Commitment, an Extended
Revolving Credit Commitment (of the same Extension Series), an
Additional/Replacement Revolving Credit Commitment (made pursuant to the same
tranche) or a Swingline Commitment.”

 

(d)                                 Section 1.1 of the Credit Agreement is hereby
amended by deleting the definition of “Commitments” contained therein
and replacing it with the following:

 

““Commitments” shall mean, with respect to
each Lender (to the extent applicable), such Lender’s Revolving Credit
Commitment, Tranche D Term Loan Commitment, Incremental Term Loan Commitment,
Extended Revolving Credit Commitment, Additional/Replacement Revolving Credit
Commitment or Swingline Commitment.”

 

6

 

(e)                                  Section 1.1 of the Credit Agreement is hereby
amended by deleting the definition of “Credit Facility” contained
therein and replacing it with the following:

 

““Credit
Facility” shall mean any of the Tranche D Term Loan Facility, any
Incremental Term Loan Facility, any Extended Term Loan Facility, any Extended
Revolving Credit Facility, the Revolving Credit Facility and any
Additional/Replacement Revolving Credit Facility.”

 

(f)                                    Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Debt
Incurrence Prepayment Event” contained therein and replacing it with the
following:

 

““Debt Incurrence Prepayment Event” shall
mean any issuance or incurrence by the Borrower or any of the Restricted
Subsidiaries of any Indebtedness, but excluding Indebtedness permitted to be
issued or incurred under Section 10.1 (other than under Section 10.1(i)(ii),
Section 10.1(v)(i) or pursuant to clause (i) of the proviso to Section 2.14(b)).”

 

(g)                                 Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Eurodollar
Loan” contained therein and replacing it with the following:

 

““Eurodollar Loan” shall mean any Loan
bearing interest at rate determined by reference to the Eurodollar Rate.”

 

(h)                                 Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Interest
Period” contained therein and replacing it with the following:

 

““Interest Period”
shall mean, with respect to any Term Loan, Revolving Credit Loan,
Additional/Replacement Revolving Credit Loan or Extended Revolving Credit Loan,
the interest period applicable thereto, as determined pursuant to Section 2.9.”

 

(i)                                     Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Loan”
and replacing it with the following:

 

““Loan” shall
mean any Revolving Credit Loan, Additional/Replacement Revolving Credit Loan
(including swingline loans made thereunder), Extended Revolving Credit Loan,
Swingline Loan or Term Loan made by any Lender hereunder.”

 

(j)                                     Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Maturity
Date” contained therein and replacing it with the following:

 

“Maturity Date” shall mean the Tranche D Term Loan Maturity
Date, the Revolving Credit Maturity Date, any maturity date related to any
tranche of Additional/Replacement Revolving Credit Commitments, any Incremental
Term Loan Maturity Date, any maturity date related to any Extension Series of
Extended Term Loans and any maturity date related to any Extension Series of
Extended Revolving Credit Commitments.”

 

7

 

(k)                                  Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Required
Lenders” contained therein and replacing it with the following:

 

““Required Lenders” shall mean, at any date, Non-Defaulting
Lenders having or holding a majority of the sum of (a) the outstanding
principal amount of the Term Loans in the aggregate at such date, (b)(i) the
Adjusted Total Revolving Credit Commitment at such date or (ii) if the
Total Revolving Credit Commitment has been terminated or for the purposes of
acceleration pursuant to Section 11, the aggregate outstanding principal
amount of the Revolving Credit Loans and Revolving Credit Exposure (excluding
the Revolving Credit Exposure of Defaulting Lenders) at such time, (c)(i) the
Adjusted Total Additional/Replacement Revolving Credit Commitment of each
tranche of Additional/Replacement Revolving Credit Commitments at such date or (ii) if
the Total Additional/Replacement Revolving Credit Commitment of any tranche of
Additional/Replacement Revolving Credit Commitments has been terminated or for
purposes of acceleration pursuant to Section 11, the outstanding principal
amount of the Additional/Replacement Revolving Credit Loans of such tranche and
the related letter of credit exposure (excluding the letter of credit exposure
of Defaulting Lenders) in the aggregate at such date and (d)(i) the
Extended Revolving Credit Commitments of each Extension Series at such
date or (ii) if the Extended Revolving Credit Commitments of any Extension
Series has been terminated or for the purposes of acceleration pursuant to
Section 11, the outstanding principal amount of the Extended Revolving
Credit Loans of such Extension Series and the related letter of credit
exposure (excluding the letter of credit exposure of Defaulting Lenders) in the
aggregate at such date.”

 

(l)                                     Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Required
Revolving Credit Lenders” contained therein and replacing it with the
following:

 

““Required Revolving Credit
Lenders” shall mean, at any date, Non-Defaulting Lenders having or holding
a majority of (a) the Adjusted Total Revolving Credit Commitment at such
date or (b) if the Total Revolving Credit Commitment has been terminated
or for the purposes of acceleration pursuant to Section 11, the aggregate
outstanding principal amount of the Revolving Credit Loans and Revolving Credit
Exposure (excluding the Revolving Credit Exposure of Defaulting Lenders) at
such time.”

 

(m)                               Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Revolving
Credit Commitment” contained therein and replacing it with the following:

 

““Revolving Credit Commitment” shall mean, (a) with
respect to each Lender that is a Lender on the Closing Date, the amount set
forth opposite such Lender’s name on Schedule 1.1(b) as such Lender’s “Revolving
Credit Commitment”, as such Revolving Credit Commitment may be reduced from
time to time pursuant to the terms hereof, (b) in the case of any Lender
that becomes a Lender after the Closing Date, the amount specified as such
Lender’s “Revolving Credit Commitment” in the Assignment and Acceptance
pursuant to which such Lender assumed a portion of the Total Revolving

 

8

 

Credit Commitment, as such Revolving Credit Commitment may be reduced
from time to time pursuant to the terms hereof and (c) in the case of any
Lender that increases its Revolving Credit Commitment or becomes an Incremental
Revolving Credit Commitment Increase Lender, in each case pursuant to Section 2.14,
the amount specified in the applicable Incremental Agreement, as such Revolving
Credit Commitment may be reduced from time to time pursuant to the terms
hereof.  The aggregate amount of
Revolving Credit Commitments as of the Closing Date was $100,000,000.”

 

(n)                                 Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Security
Documents” contained therein and replacing it with the following:

 

““Security Documents”
shall mean, collectively, (a) the Security Agreement, (b) the Pledge
Agreement, (c) the First Reaffirmation Agreement and the Second
Restatement Reaffirmation Agreement (d) the Mortgages, (e) any
intercreditor agreement executed and delivered pursuant to Section 10.2 and
(f) each other security agreement or other instrument or document executed
and delivered pursuant to Section 9.11, 9.12 or 9.14 or pursuant to any
other such Security Documents or Permitted Other Debt Documents to secure or
perfect the security interest in any or all of the First Lien Obligations.”

 

(o)                                 Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Term Loan”
contained therein and replacing it with the following:

 

““Term Loan” shall mean a Tranche D Term Loan, an Incremental Term Loan or any
Extended Term Loans, as applicable.”

 

(p)                                 Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Total
Commitment” contained therein and replacing it with the following:

 

““Total Commitment”
shall mean the sum of the Total Tranche D Term Loan Commitment, the Total
Incremental Term Loan Commitment, the Total Revolving Credit Commitment and the
Total Additional/Replacement Revolving Credit Commitment.”

 

(q)                                 Section 1.1 of the
Credit Agreement is hereby amended by deleting the definition of “Type”
contained therein and replacing it with the following:

 

““Type” shall mean (a) as
to any Term Loan, its nature as an ABR Loan or a Eurodollar Loan, (b) as
to any Revolving Credit Loan, its nature as an ABR Loan or a Eurodollar Loan
and (c) as to any Additional/Replacement Revolving Credit Loans, its
nature as an ABR Loan or a Eurodollar Loan.”

 

(r)                                    Section 1.1 of the
Credit Agreement is hereby amended by deleting the following definitions
contained therein in their entirety:  “Adjusted
Total New Term Loan Commitment”, “Eurodollar New Term Loan”, “Eurodollar
Revolving Credit Loan”, “Eurodollar Term Loan”, “Eurodollar
Tranche D Term Loan”, “Increased Amount Date”, “Joinder Agreement”,
“New Letter of Credit Exposure”, “New Commitments”, “New Term
Loan 

 

9

 

Commitments”, “New Term Loan Facility”, “New Term
Loan Lender”, “New Term Loans”, “New Term Loan Maturity Date”,
“Revolving Credit Increase Lender”, “Revolving Credit Increase”, “Series”,
“Total New Term Loan Commitment”

 

(s)                                  Clause (iv) of Section 2.1(a) is
hereby amended by deleting such clause contained therein and replacing it with
the foregoing:

 

“(iv) may at the option
of the Borrower be incurred and maintained as, and/or converted into, ABR Loans
or Eurodollar Loans; provided that all such Tranche D Term Loans made by
each of the Tranche D Term Lenders pursuant to the same Borrowing shall, unless
otherwise provided herein, consist entirely of Tranche D Term Loans of the same
Type”

 

(t)                                    Clause (v) of Section 2.1(b) of
the Credit Agreement is hereby amended by deleting such clause in its entirety
and replacing it with the foregoing:

 

“(v) may at the option
of the Borrower be incurred and maintained as, and/or converted into, ABR Loans
or Eurodollar Loans; provided that all Revolving Credit Loans made by
each of the Lenders pursuant to the same Borrowing shall, unless otherwise
specifically provided herein, consist entirely of Revolving Credit Loans of the
same Type”

 

(u)                                 Clauses (ii) and (iii) of
Section 2.3(a) are hereby amended by deleting such clause contained
therein and replacing them with the foregoing:

 

“(ii) the date of the
Borrowing (which shall be (x) in the case of Tranche D Term Loans, the
Effective Date and (y) in the case of Incremental Term Loans, the relevant
Incremental Facility Closing Date) and (iii) whether the Term Loans shall
consist of ABR Loans and/or Eurodollar Loans and, if the Term Loans are to
include Eurodollar Loans, the Interest Period to be initially applicable
thereto.”

 

(v)                                 Clause (i) of Section 2.3(b) of
the Credit Agreement is hereby amended by deleting such clause in its entirety
and replacing it with the foregoing:

 

“(i) prior to 1:00 p.m.
(New York time) at least three Business Days’ prior written notice (or
telephonic notice promptly confirmed in writing) of each Borrowing of
Eurodollar Loans,”

 

(w)                               Clause (iii) of Section 2.3(b) of
the Credit Agreement is hereby amended by deleting such clause in its entirety
and replacing it with the foregoing:

 

“(iii) whether the
respective Borrowing shall consist of ABR Loans or Eurodollar Loans and, if
Eurodollar Loans, the Interest Period to be initially applicable thereto.”

 

(x)                                   Section 2.5(a) of
the Credit Agreement is hereby replaced in its entirety as follows:

 

10

 

“(a)  The Borrower
shall repay to the Administrative Agent, for the benefit of the applicable
Lenders, (i) on the Tranche D Term Loan Maturity Date, all then
outstanding Tranche D Term Loans, (ii) on the relevant maturity date for
any tranche of Incremental Term Loans, all then outstanding Incremental Term
Loans of such tranche, (iii) on the Revolving Credit Maturity Date, all
then outstanding Revolving Credit Loans, (iv) on the relevant maturity
date for any tranche of Additional/Replacement Revolving Credit Commitments,
all then outstanding Additional/Replacement Revolving Credit Loans, (v) on
the relevant maturity date for any Extension Series of Extended Term
Loans, all then outstanding Extended Term Loans of such Extension Series, (vi) on
the relevant maturity date for any Extension Series of Extended Revolving
Credit Commitments, all then outstanding Extended Revolving Credit Loans of
such Extension Series and (vii) on the Swingline Maturity Date, all
then outstanding Swingline Loans.”

 

(y)                                 Section 2.5(c) of
the Credit Agreement is hereby replaced in its entirety as follows:

 

“In the event any Incremental Term Loans are
made, such Incremental Term Loans shall mature and be repaid in amounts (each
such amount, an “Incremental Term Loan Repayment Amount”) and on dates
as agreed between the Borrower and the relevant Lenders of such Incremental
Term Loans in the applicable Incremental Agreement, subject to the requirements
set forth in Section 2.14.  In the
event that any Extended Term Loans are established, such Extended Term Loans
shall, subject to the requirements of Section 2.15, be repaid by the
Borrower in the amounts (each such amount, an “Extended Term Loan Repayment
Amount”) and on the dates (each an “Extended Repayment Date”) set
forth in the applicable Extension Agreement. In the event any Extended
Revolving Credit Commitments are established, such Extended Revolving Credit
Commitments shall, subject to Section 2.15, be terminated (and all
Extended Revolving Credit Loans of the same Extension Series repaid) on
dates set forth in the applicable Extension Agreement.”

 

(z)                                   Section 2.5(e) of
the Credit Agreement is hereby replaced in its entirety as follows:

 

“(e) The Administrative Agent shall maintain
the Register pursuant to Section 13.6(b), and a subaccount for each
Lender, in which Register and subaccounts (taken together) shall be recorded (i) the
amount of each Loan made hereunder, whether such Loan is a Tranche D Term Loan,
an Incremental Term Loan (and the relevant tranche thereof), a Revolving Credit
Loan, an Additional/Replacement Revolving Credit Loan, an Extended Term Loan,
an Extended Revolving Credit Loan or Swingline Loan, as applicable, the Type of
each Loan made and the Interest Period applicable thereto, (ii) the amount
of any principal or interest due and payable or to become due and payable from
the Borrower to each Lender or the Swingline Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder from the
Borrower and each Lender’s share thereof.”

 

(aa)                            Section 2.6(a) of
the Credit Agreement is hereby replaced in its entirety as follows:

 

11

 

“(a) The Borrower shall have the option on any
Business Day to convert all or a portion equal to at least the Minimum
Borrowing Amount of the outstanding principal amount of Term Loans, Revolving
Credit Loans, Additional/Replacement Revolving Credit Loans or Extended
Revolving Credit Loans of one Type into a Borrowing or Borrowings of another
Type and (y) the Borrower shall have the option on any Business Day to
continue the outstanding principal amount of any Eurodollar Loans as Eurodollar
Loans for an additional Interest Period; provided that (i) no
partial conversion of Eurodollar Loans shall reduce the outstanding principal
amount of Eurodollar Loans made pursuant to a single Borrowing to less than the
Minimum Borrowing Amount, (ii) ABR Loans may not be converted into
Eurodollar Loans if a Default or Event of Default is in existence on the date
of the conversion and the Administrative Agent has, or the Required Lenders in
respect of the Credit Facility that is subject to such conversion have,
determined in its or their sole discretion not to permit such conversion, (iii) Eurodollar
Loans may not be continued as Eurodollar Loans for an additional Interest
Period if a Default or Event of Default is in existence on the date of the
proposed continuation and the Administrative Agent has, or the Required Lenders
in respect of the Credit Facility that is subject to such continuation have,
determined in its or their sole discretion not to permit such continuation and (iv) Borrowings
resulting from conversions pursuant to this Section 2.6 shall be limited
in number as provided in Section 2.2. 
Each such conversion or continuation shall be effected by the Borrower
by giving the Administrative Agent at the applicable Administrative Agent’s
Office prior to 1:00 p.m. (New York time) at least (i) three Business
Days’, in the case of a continuation of, or conversion to, Eurodollar Loans or (ii) one
Business Day’s in the case of a conversion into ABR Loans, prior written notice
(or telephonic notice promptly confirmed in writing) (each, a “Notice of
Conversion or Continuation”) specifying the Loans to be so converted or
continued, the Type of Loans to be converted into or continued and, if such
Loans are to be converted into, or continued as, Eurodollar Loans, the Interest
Period to be initially applicable thereto (if no Interest Period is selected,
the Borrower shall be deemed to have selected an Interest Period of one month’s
duration).  The Administrative Agent
shall give each applicable Lender notice as promptly as practicable of any such
proposed conversion or continuation affecting any of its Loans.”

 

(bb)                          The third sentence of Section 2.7
of the Credit Agreement is hereby replaced in its entirety as follows:

 

“Each Borrowing of Incremental Term Loans under this
Agreement shall be granted by the Lenders of the relevant tranche thereof on a
pro rata basis of their then applicable Incremental Term Loan Commitments. Each
borrowing of Additional/Replacement Revolving Credit Loans under the Agreement
shall be granted by the Lenders thereof on a pro rata basis of their then
applicable Additional/Replacement Revolving Credit Commitments for the
applicable tranche.”

 

(cc)                            Section 2.14 of the
Credit Agreement is hereby replaced in its entirety as follows:

 

12

 

“2.14  Incremental Facilities.

 

(a)  The Borrower may, at any time or from time
to time after the Closing Date, by written notice delivered to the
Administrative Agent no later than 10 days prior to the anticipated Incremental
Facility Closing Date (or such shorter period as may be agreed by the
Administrative Agent in its discretion) (whereupon the Administrative Agent
shall promptly deliver a copy to each of the Lenders), request (i) one or
more additional tranches of term loans (the “Incremental Term Loans”), (ii) one
or more increases in the amount of the Revolving Credit Commitments (each such
increase, an “Incremental Revolving Credit Commitment Increase”) or (iii) one
or more additional tranches of revolving credit commitments (the “Additional/Replacement
Revolving Credit Commitments”); provided that both at the time of
any such request and after giving effect to the effectiveness of any
Incremental Agreement referred to below, no Default or Event of Default shall
exist and at the time that any such Incremental Term Loan, Incremental
Revolving Credit Commitment Increase or Additional/Replacement Revolving Credit
Commitments is made or effected (and after giving effect thereto), no Default
or Event of Default shall exist; provided, further, that after giving effect to
the incurrence of such Incremental Term Loans or borrowing under such
Incremental Revolving Credit Commitment Increase or borrowing under such Additional/Replacement Revolving Credit Commitments (and after
giving effect to any investment to be consummated in connection therewith), the
Borrower and the Restricted Subsidiaries shall be in pro forma compliance with
the requirements of Sections 10.9 and 10.10 computed as of the last day of the
most recent Test Period, in each case as if such Incremental Term Loans,
Incremental Revolving Credit Commitment Increase or Additional/Replacement
Revolving Credit Commitments, as applicable, had been outstanding on the last
day of such Test Period for testing compliance therewith.

 

(b)  Each tranche of Incremental Term Loans,
each Incremental Revolving Credit Commitment Increase and each tranche of
Additional/Replacement Revolving Credit Commitments shall be in an aggregate
principal amount that is not less than $25,000,000 (provided that such
amount may be less than $25,000,000 if such amount represents all remaining
availability under the limit set forth below in this Section 2.14(b)) and the aggregate amount of the Incremental
Term Loans, Incremental Revolving Credit Commitment Increases and the Additional/Replacement Revolving Credit Commitments shall not
exceed $150,000,000 (the “Incremental Limit”); provided
that (i) Incremental Term Loans may be incurred without regard to the
Incremental Limit, to the extent that the Net Cash Proceeds from such
Incremental Term Loans are used on the date of incurrence of such Incremental
Term Loans to make the prepayments as required pursuant to Section 5.2(a)(i),
(ii) Additional/Replacement Revolving Credit Commitments may be provided
without regard to the Incremental Limit to the extent that the existing
Revolving Credit Commitments shall be reduced in accordance with Section 5.2(e)(ii) by
an amount equal to the aggregate amount of Additional/Replacement Revolving
Credit Commitments so provided, (iii) in no event shall there be more than
three Classes of revolving credit commitments outstanding at any one time and (iv) in
no event shall there be more than six Classes of Term Loans outstanding at any
one time.

 

(c)  (A) The Incremental Term Loans (i) shall
rank pari passu in right of payment and of security with the Tranche D Term
Loans, (ii) shall not mature earlier than the Tranche D Term Loan Maturity
Date, (iii) shall have all-in pricing (including, without 

 

13

 

limitation, margins, fees,
funding discounts, and premiums) and, subject to clause (ii) above, a
maturity date and amortization schedules determined by the Borrower and the
lenders thereof, (iv) shall have voluntary and mandatory prepayments
subject to the provisions of Section 5.1 and 5.2 and (v) shall
otherwise have terms and conditions substantially similar to those of the
Tranche D Term Loans unless the differences are (x) solely technical in
nature or (y) made for the benefit of the Lenders of the Tranche D Term
Loans.

 

(B) The Incremental Revolving Credit Commitment
Increase shall be treated the same as the Revolving Credit Commitments
(including with respect to maturity date thereof) and shall be considered to be
part of the Revolving Credit Facility.

 

(C) The Additional/Replacement Revolving Credit
Commitments (i) shall rank pari passu in right of payment and of security
with the Revolving Credit Loans, (ii) shall not mature earlier than the
Revolving Credit Maturity Date and shall require no mandatory commitment reduction
prior to the Revolving Credit Maturity Date, (iii) shall have all-in
pricing (including, without limitation, margins, fees, premiums and funding
discounts) determined by the Borrower and the lenders of such commitments; (iv) shall
contain procedures that require Additional/Replacement Revolving Credit Loans
thereunder to be borrowed and repaid (other than in connection with a permanent
repayment and termination of commitments) on a pro rata basis with any
borrowings and repayments of Revolving Credit Loans under the Revolving Credit
Commitments (which procedures may be implemented through the applicable
Incremental Agreement and may include technical changes related to the
borrowing and repayment procedures of the Revolving Credit Facility), (v) shall
have voluntary and mandatory reductions of commitment rights that are subject
to the provisions of Sections 4.2 and 5.2(e)(ii), (vi) may include provisions
relating to swingline loans and/or letters of credit, as applicable, issued
thereunder, which issuances shall be on terms substantially similar (except for
the overall size of such subfacilities, the fees payable in connection
therewith and the identity of the swingline lender and letter of credit issuer,
as applicable, which shall be determined by the Borrower, the lenders of such
commitments and the applicable letter of credit issuers and swingline lenders
and borrowing, repayment and termination of commitment procedures with respect
thereto, in each case which shall be specified in the applicable Incremental
Agreement) to the terms relating to Swingline Loans and Letters of Credit with
respect to the Revolving Credit Commitments or otherwise reasonably acceptable
to the Administrative Agent and (vii) shall otherwise have terms and
conditions substantially similar to those of the Revolving Credit Facility
unless the differences are (x) solely technical in nature or (y) made
for the benefit of the Lenders of the Revolving Credit Commitments.

 

(d)  Each notice
from the Borrower pursuant to this Section 2.14 shall be given in writing
and shall set forth the requested amount and proposed terms of the relevant
Incremental Term Loans, Incremental Revolving Credit Commitment Increases or Additional/Replacement Revolving Credit
Commitments.  Incremental Term Loans may
be made, and Incremental Revolving Credit Commitment
Increases or Additional/Replacement Revolving Credit Commitments may be
provided, subject to the prior written consent of the Borrower (not to be
unreasonably withheld) by any existing 

 

14

 

Lender
(it being understood that (i) each existing Lender may elect or decline,
in its sole discretion, to make a portion of any Incremental Term Loan, (ii) each
existing Lender with a Revolving Credit Commitment may elect or decline, in its
sole discretion, to provide a portion of any Incremental Revolving Credit
Commitment Increase or any Additional/Replacement Revolving Credit Commitment
and (iii) the Borrower shall have simultaneously offered the existing
Lenders the opportunity to provide any such Incremental Term Loans, Incremental
Revolving Credit Commitment Increases or Additional/Replacement Revolving
Commitments) or by any Additional Lender; provided that the
Administrative Agent shall have consented (not to be unreasonably withheld) to
such Lender’s or Additional Lender’s making such Incremental Term Loans or
providing such Incremental Revolving Credit Commitment Increases or
Additional/Replacement Revolving Credit Commitments, if such consent would be
required under Section 13.6(b) for an assignment of Loans or
Commitments, as applicable, to such Lender or Additional Lender.

 

(e)  Commitments in respect of Incremental
Term Loans, Incremental Revolving Credit Commitment Increases and
Additional/Replacement Revolving Credit Commitments shall become Commitments
(or in the case of an Incremental Revolving Credit Commitment Increase to be
provided by an existing Lender with a Revolving Credit Commitment, an increase
in such Lender’s applicable Revolving Credit Commitment) under this Agreement
pursuant to an amendment (an “Incremental Agreement”) to this Agreement
and, as appropriate, the other Credit Documents, executed by Holdings, the
Borrower, each Lender agreeing to provide such Commitment, if any, each
Additional Lender, if any, and the Administrative Agent.  The Incremental Agreement may, subject to Section 2.14(c),
without the consent of any other Lender, effect such amendments to this
Agreement and the other Credit Documents as may be necessary, in the reasonable
opinion of the Administrative Agent and the Borrower, to effect the provisions
of this Section.  The effectiveness of
any Incremental Agreement shall be subject to the satisfaction on the date
thereof (each, an “Incremental Facility Closing Date”) of each of the
conditions set forth in Section 7 (it being understood that all references
to “the date of such Credit Event” or similar language in such Section 7
shall be deemed to refer to the effective date of such Incremental Agreement),
the delivery to the Administrative Agent of legal opinions of counsel
reasonably requested by the Administrative Agent in connection with any such
transaction and such other conditions as the parties thereto shall agree.  The Borrower will use the proceeds of the
Incremental Term Loans, Incremental Revolving Credit Commitment Increases and
Additional/Replacement Revolving Credit Commitments for any purpose not
prohibited by this Agreement; provided, however, that the
proceeds of any Incremental Term Loans incurred, and any Additional/Replacement
Revolving Credit Commitments provided, in either case as described in the
proviso to Section 2.14(b), shall be used in accordance with the terms
thereof.

 

(f) (i) Upon each increase in the
Revolving Credit Commitments pursuant to this Section, each Lender with a
Revolving Credit Commitment immediately prior to such increase will
automatically and without further act be deemed to have assigned to each Lender
providing a portion of the Incremental Revolving Credit Commitment Increase (each,
an “Incremental Revolving Credit Commitment Increase Lender”) in 

 

15

 

respect of such increase,
and each such Incremental Revolving Commitment Increase Lender will
automatically and without further act be deemed to have assumed, a portion of
such Lender’s participations hereunder in outstanding Letters of Credit and
Swingline Loans such that, after giving effect to each such deemed assignment
and assumption of participations, the percentage of the aggregate outstanding (A) participations
hereunder in Letters of Credit and (B) participations hereunder in
Swingline Loans held by each Lender with a Revolving Credit Commitment
(including each such Incremental Revolving Commitment Increase Lender) will
equal the percentage of the aggregate Revolving Credit Commitments of all
Lenders represented by such Lender’s Revolving Credit Commitment.  If, on the date of such increase, there are
any Revolving Credit Loans outstanding, such Revolving Credit Loans shall on or
prior to the effectiveness of such Incremental Revolving Credit Commitment
Increase be prepaid from the proceeds of additional Revolving Credit Loans made
hereunder (reflecting such increase in Revolving Credit Commitments), which
prepayment shall be accompanied by accrued interest on the Revolving Credit
Loans being prepaid and any costs incurred by any Lender in accordance with Section 2.11.  The Administrative Agent and the Lenders
hereby agree that the minimum borrowing, pro rata borrowing and pro rata
payment requirements contained elsewhere in this Agreement shall not apply to
the transactions effected pursuant to the immediately preceding sentence.

 

(ii) Upon each provision of
Additional/Replacement Revolving Credit Commitments pursuant to clause (ii) of
the proviso to Section 2.14(b), each Lender with a Revolving Credit
Commitment immediately prior to the providing of such Additional/Replacement
Revolving Loan Commitments will automatically and without further act be deemed
to have assigned to each Lender providing a portion of such
Additional/Replacement Revolving Credit Commitment in respect of such
provision, and each such Lender will automatically and without further act be
deemed to have assumed, a portion of such Revolving Credit Lender’s participations
hereunder in outstanding Letters of Credit and Swingline Loans such that, after
giving effect to such deemed assignment and assumption of participations, the
percentage of the aggregate outstanding (x) participations hereunder in
Letters of Credit and (y) participations hereunder in Swingline Loans held
by each Lender with a Revolving Credit Commitment and each Lender with an
Additional/Replacement Revolving Credit Commitment will equal the
percentage of the aggregate Revolving Credit Commitments and aggregate
Additional/Replacement Revolving Credit Commitments of all Lenders represented
by such Lender’s Revolving Credit Commitment and Additional/Replacement
Revolving Credit Commitment, as applicable. 
If, on the date of the providing of such Additional/Replacement
Revolving Credit Commitments pursuant to clause (ii) of the proviso to Section 2.14(b),
there are any Revolving Credit Loans outstanding, such Revolving Credit Loans
shall, on or prior to the effectiveness of such Additional/Replacement Revolving
Credit Commitments, be prepaid from the proceeds of Additional/Replacement
Revolving Credit Loans made hereunder (reflecting such Additional/Replacement
Revolving Credit Commitments), which prepayment shall be accompanied by accrued
and unpaid interest on the Revolving Credit Loans being prepaid and any costs
incurred by any Lender in accordance with Section 2.11.  The Administrative Agent and
the Lenders hereby agree that the minimum borrowing, pro rata borrowing and pro
rata payment requirements contained elsewhere in this Agreement 

 

16

 

shall not apply to the
transactions effected pursuant to the immediately preceding sentence.”

 

(dd)                          A new Section 2.15 of
the Credit Agreement is hereby added as follows:

 

“2.15.                  Extensions of Term Loans,
Revolving Credit Loans and Revolving Credit Commitments and
Additional/Replacement Revolving Credit Loans and Additional/Replacement
Revolving Credit Commitments. (a)(i) The Borrower
may at any time and from time to time request that all or a portion of each
Term Loan of any Class (an “Existing Term Loan Class”) be exchanged
to extend the scheduled final maturity date thereof (any such Term Loans which
have been so extended, “Extended Term Loans”) and to provide for other
terms consistent with this Section 2.15. 
Prior to entering into any Extension Agreement with respect to any
Extended Term Loans, the Borrower shall provide written notice to the
Administrative Agent (who shall provide a copy of such notice to each of the
Lenders of the applicable Existing Term Loan Class) (a “Term Loan Extension
Request”) setting forth the proposed terms of the Extended Term Loans to be
established, which terms shall be identical to the Term Loans of the Existing
Term Loan Class from which they are to be extended except (x) the
scheduled final maturity date shall be extended and all or any of the scheduled
amortization payments of all or a portion of any principal amount of such
Extended Term Loans may be delayed to later dates than the scheduled
amortization of principal of the Term Loans of such Existing Term Loan Class (with
any such delay resulting in a corresponding adjustment to the scheduled
amortization payments reflected in Section 2.5 or in the Incremental
Agreement, as the case may be, with respect to the Existing Term Loan Class of
Term Loans from which such Extended Term Loans were extended, in each case as
more particularly set forth Section 2.15(c) below), (y) all-in
pricing (including, without limitation, margins, fees and premiums) with
respect to the Extended Term Loans may be higher or lower than the all-in
pricing (including, without limitation, margins, fees and premiums) for the
Term Loans of such Existing Term Loan Class, in each case, to the extent
provided in the applicable Extension Agreement and (z) the voluntary and
mandatory prepayment rights of the Extended Term Loans shall be subject to the
provisions set forth in Sections 5.1 and 5.2. 
No Lender shall have any obligation to agree to have any of its Term
Loans of any Existing Term Loan Class exchanged into Extended Term Loans
pursuant to any Term Loan Extension Request. 
Any Extended Term Loans of any Extension Series shall constitute a
separate Class of Term Loans from the Existing Term Loan Class of
Term Loans from which they were extended; provided that in no event
shall there be more than six Classes of Term Loans outstanding at any time.

 

(ii) The Borrower may at any time and from time
to time request that all or a portion of the Revolving Credit Commitments
and/or any Additional/Replacement Revolving Credit Commitments (and, in each
case, including any previously extended Revolving Credit Commitments and/or
Additional/Replacement Revolving Credit Commitments) existing at the time of
such request (each, an “Existing Revolving Credit Commitment” and any
related revolving credit loans under any such facility, “Existing Revolving
Credit Loans”) be exchanged to extend the termination date thereof and the
scheduled maturity date(s) of any payment of principal with respect to all
or a portion of 

 

17

 

any principal amount of Existing Revolving Credit
Loans related to such Existing Revolving Credit Commitments (any such Existing
Revolving Credit Commitments which have been so extended, “Extended
Revolving Credit Commitments” and any related revolving credit loans, “Extended
Revolving Credit Loans”) and to provide for other terms consistent with
this Section 2.15.  Prior to
entering into any Extension Agreement with respect to any Extended Revolving
Credit Commitments, the Borrower shall provide a notice to the Administrative
Agent (who shall provide a copy of such notice to each of the Lenders of the
applicable Class of Existing Revolving Credit Commitments) (a “Revolving
Credit Extension Request”) setting forth the proposed terms of the Extended
Revolving Credit Commitments to be established thereunder, which terms shall be
identical to those applicable to the Existing Revolving Credit Commitments from
which they are to be extended (the “Specified Existing Revolving Credit
Commitment Class”) except (x) all or any of the final maturity dates
of such Extended Revolving Credit Commitments may be delayed to later dates
than the final maturity dates of the Existing Revolving Credit Commitments of
the Specified Existing Revolving Credit Commitment Class, (y) the all-in
pricing (including, without limitation, margins, fees and premiums) with
respect to the Extended Revolving Credit Commitments may be higher or lower
than the all-in pricing (including, without limitation, margins, fees and
premiums) for the Existing Revolving Credit Commitments of the Specified
Existing Revolving Credit Commitment Class and (z) the revolving
credit commitment fee rate with respect to the Extended Revolving Credit
Commitments may be higher or lower than the revolving credit commitment fee
rate for Existing Revolving Credit Commitments of the Specified Existing
Revolving Credit Commitment, in each case, to the extent provided in the
applicable Extension Agreement; provided that, notwithstanding anything
to the contrary in this Section 2.15 or otherwise, (1) the borrowing
and repayment (other than in connection with a permanent repayment and
termination of commitments) of the Extended Revolving Credit Loans under any
Extended Revolving Credit Commitments shall be made on a pro rata basis with
any borrowings and repayments of the Existing Revolving Credit Loans (the
mechanics for which may be implemented through the applicable Extension
Agreement and may include technical changes related to the borrowing and
repayment procedures of the Revolving Credit Facility), (2) assignments
and participations of Extended Revolving Credit Commitments and Extended
Revolving Credit Loans shall be governed by the assignment and participation
provisions set forth in Section 13.6 and (3)(I) in the case of Section 4.2,
and clause (ii) of the proviso to Section 2.14(b), no permanent
repayment of Extended Revolving Credit Loans (and corresponding permanent
reduction in the related Extended Revolving Credit Commitments) shall be
permitted unless all Existing Revolving Credit Loans and all Existing Revolving
Credit Commitments of the Specified Existing Revolving Credit Commitment Class,
shall have been repaid in full and terminated, respectively and (II) in
all other cases, no termination of Extended Revolving Credit Commitments and no
repayment of Extended Revolving Credit Loans accompanied by a corresponding
permanent reduction in Extended Revolving Credit Commitments shall be 

 

18

 

permitted unless such termination or repayment (and
corresponding reduction) is accompanied by at least a pro rata termination or
permanent repayment (and corresponding pro rata  permanent
reduction), as applicable, of the Existing Revolving Credit Loans and Existing
Revolving Credit Commitments of the Specified Existing Revolving Credit
Commitment Class (or all Existing Revolving Credit Commitments of such Class and
related Existing Revolving Credit Loans shall have otherwise been terminated
and repaid in full).  Any Extended
Revolving Credit Commitments of any Extension Series shall constitute a
separate Class of revolving credit commitments from Existing Revolving
Credit Commitments of the Specified Existing Revolving Credit Commitment Class and
from any other Existing Revolving Credit Commitments (together with any other
Extended Revolving Credit Commitments so established on such date); provided
that in no event shall there be more than three Classes of revolving credit
commitments outstanding at any one time.

 

(b)                                 The Borrower shall provide
the applicable Extension Request at least ten (10) Business Days prior to
the date on which Lenders under the Existing Class are requested to
respond.  Any Lender (an “Extending
Lender”) wishing to have all or a portion of its Term Loans, Revolving Credit
Commitments or Additional/Revolving Credit Commitments (or any earlier extended
Extended Revolving Credit Commitments) of an Existing Class subject to
such Extension Request exchanged into Extended Loans/Commitments shall notify
the Administrative Agent (an “Extension Election”) on or prior to the
date specified in such Extension Request of the amount of its Term Loans,
Revolving Credit Commitments and/or Additional/Revolving Credit Commitments
(and/or any earlier extended Extended Revolving Credit Commitments) which it
has elected to convert into Extended Loans/Commitments.  In the event that the aggregate amount of
Term Loans, Revolving Credit Commitments and Additional/Revolving Credit
Commitments (and any earlier extended Extended Revolving Credit Commitments)
subject to Extension Elections exceeds the amount of Extended Loans/Commitments
requested pursuant to the Extension Request, Term Loans, Revolving Credit
Commitments and Additional/Revolving Credit Commitments (and any earlier
extended Extended Revolving Credit Commitments) subject to Extension Elections
shall be exchanged to Extended Loans/Commitments on a pro rata basis based on
the amount of Term Loans, Revolving Credit Commitments and Additional/Revolving
Credit Commitments (and any earlier extended Extended Revolving Credit
Commitments) included in each such Extension Election.  Notwithstanding the conversion of any
Existing Revolving Credit Commitment (other than an Additional/Replacement
Revolving Credit Commitment) into an Extended Revolving Credit Commitment, such
Extended Revolving Credit Commitment shall be treated identically to all
Existing Revolving Credit Commitments of the Specified Existing Revolving
Credit Commitment Class for purposes of the obligations of a Revolving
Credit Lender in respect of Swingline Loans under Section 2.1(d) and
Letters of Credit under Section 3, except that the applicable Extension
Agreement may provide that the Swingline Maturity Date and/or the last day for
issuing Letters of Credit may be extended and the related obligations to make
Swingline Loans and issue Letters of Credit may be continued (pursuant to
mechanics set forth in the applicable Extension Agreement) so long as the
Swingline Lender and/or the applicable Letter of Credit Issuer, as applicable,
have 

 

19

 

consented to such extensions (it being understood
that no consent of any other Lender shall be required in connection with any
such extension).  Notwithstanding the
conversion of any Existing Revolving Credit Commitment into an Extended
Revolving Credit Commitment (other than a Revolving Credit Commitment), such
Extended Revolving Credit Commitment shall be treated identically to all
Existing Revolving Credit Commitments of the Specified Existing Revolving
Credit Commitment Class for purposes of the obligations of the lenders
thereof in respect of swingline loans and letters of credit, except that the
applicable Extension Agreement may provide that the applicable swingline
maturity date and/or the last day for issuing letters of credit may be extended
and the related obligations to make swingline loans and issue letters of credit
may be continued so long as the applicable swingline lender and/or the
applicable letter of credit issuer, as applicable, have consented to such
extensions (it being understood that no consent of any other Lender shall be
required in connection with any such extension).

 

(c)                                  Extended Loans/Commitments
shall be established pursuant to an amendment (an “Extension Agreement”)
to this Credit Agreement (which, except to the extent expressly contemplated by
the penultimate sentence of this Section 2.15(c) and notwithstanding
anything to the contrary set forth in Section 13.1, shall not require the
consent of any Lender other than the Extending Lenders with respect to the
Extended Loans/Commitments established thereby) executed by the Credit Parties,
the Administrative Agent and the Extending Lenders.   Notwithstanding anything to the contrary in
this Section 2.15 and without limiting the generality or applicability of Section 13.1
to any Section 2.15 Additional Agreements, any Extension Agreement may
provide for additional terms and/or additional amendments other than those
referred to or contemplated above (any such additional amendment, a “Section 2.15
Additional Agreement”) to this Agreement and the other Credit Documents; provided
that such Section 2.15 Additional Agreements do not become effective prior
to the time that such Section 2.15 Additional Agreements have been
consented to (including, without limitation, pursuant to (1) consents
applicable to holders of Incremental Term Loans, Additional/Replacement
Revolving Credit Commitments and Incremental Revolving Credit Commitment
Increases provided for in any Incremental Agreement and (2) consents
applicable to holders of any Extended Loans/Commitments provided for in any
Extension Agreement) by such of the Lenders, Credit Parties and other parties
(if any) as may be required in order for such Section 2.15 Additional
Agreements to become effective in accordance with Section 13.1.  It is understood and agreed that each Lender
that has consented to Amendment No. 1 has consented, and shall at the
effective time thereof be deemed to consent to each amendment to this Agreement
and the other Credit Documents authorized by this Section 2.15 and the
arrangements described above in connection therewith except that the foregoing
shall not constitute a consent on behalf of any Lender to the terms of any Section 2.15
Additional Agreement.  In connection with
any Extension Agreement, the Borrower shall deliver an opinion of counsel
reasonably acceptable to the Administrative Agent (i) as to the
enforceability of such Extension Agreement, the Credit Agreement as amended
thereby, and such of the other Credit Documents (if any) as may be amended
thereby (in the case of such other Credit Documents as contemplated by the
immediately preceding sentence), (ii) to the effect that such Extension
Agreement, including without limitation, the Extended Loans/Commitments
provided for therein, does not conflict with or violate the terms and 

 

20

 

provisions of Section 13.1 of this Agreement
and (iii) as to any other matter reasonably requested by the
Administrative Agent.”

 

(ee)                            Section 4.2 of the
Credit Agreement is hereby deleted and replaced in its entirety as follows:

 

“Upon at least one Business Day’s prior written
notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent at the Administrative Agent’s Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), the
Borrower shall have the right, without premium or penalty, on any day,
permanently to terminate or reduce the Revolving Credit Commitments and/or any
tranche of Additional/Replacement Revolving Credit Commitments, as determined
by the Borrower, in whole or in part; provided that (a) with
respect to the Revolving Credit Commitments, any such reduction shall apply
proportionately and permanently to reduce the Revolving Credit Commitments of
each of the Revolving Credit Lenders, except that, notwithstanding the
foregoing, in connection with the establishment on any date of any Extended
Revolving Credit Commitments pursuant to Section 2.15, the Revolving
Credit Commitments of any one or more Lenders providing any such Extended
Revolving Credit Commitments on such date shall be reduced in an amount equal
to the amount of Revolving Credit Commitments so extended on such date (provided
that (x) after giving effect to any such reduction and to the repayment of
any Revolving Credit Loans made on such date, the Revolving Credit Exposure of
any such Lender does not exceed the Revolving Credit Commitment thereof (such
Revolving Credit Exposure and Revolving Credit Commitment being determined in
each case, for the avoidance of doubt, exclusive of such Lender’s Extended
Revolving Credit Commitment and any exposure in respect thereof) and (y) for
the avoidance of doubt, any such repayment of Revolving Credit Loans
contemplated by the preceding clause shall be made in compliance with the
requirements of Section 5.3(a) with respect to the ratable allocation
of payments hereunder, with such allocation being determined after giving
effect to any exchange pursuant to Section 2.15 of Revolving Credit
Commitments and Revolving Credit Loans into Extended Revolving Credit
Commitments and Extended Revolving Credit Loans, respectively, and prior to any
reduction being made to the Revolving Credit Commitment of any other Lender), (b) with
respect to any tranche of Additional/Replacement Revolving Credit Commitments,
any such reduction shall apply proportionately and permanently to reduce the
Additional/Replacement Revolving Credit Commitments of each of the
Additional/Replacement Revolving Credit Lenders of such tranche, except that,
notwithstanding the foregoing, in connection with the establishment on any date
of any Extended Revolving Credit Commitments pursuant to Section 2.15, the
Additional/Replacement Revolving Credit Commitments of any one or more Lenders
providing any such Extended Revolving Credit Commitments on such date shall be
reduced in an amount equal to the amount of Additional/Replacement Revolving
Credit Commitments so extended on such date (provided that (x) after
giving effect to any such reduction and to the repayment of any
Additional/Replacement Revolving Credit Loans made on such date, the revolving
credit exposure of any such Lender does not exceed the Additional/Replacement
Revolving Credit Commitment thereof (such revolving credit exposure and
Additional/Replacement Revolving Credit Commitment being determined in each
case, for the avoidance of doubt, exclusive of such Lender’s Extended Revolving

 

21

 

Credit Commitment and any
exposure in respect thereof) and (y) for the avoidance of doubt, any such
repayment of Additional/Replacement Revolving Credit Loans contemplated by the
preceding clause shall be made in compliance with the requirements of Section 5.3(a) with
respect to the ratable allocation of payments hereunder, with such allocation
being determined after giving effect to any exchange pursuant to Section 2.15
of Additional/Replacement Revolving Credit Commitments and
Additional/Replacement Revolving Credit Loans into Extended Revolving Credit
Commitments and Extended Revolving Credit Loans, respectively, and prior to any
reduction being made to the Additional/Replacement Revolving Credit Commitment
of any other Lender), (c) any partial reduction pursuant to this Section 4.2
shall be in the amount of at least $1,000,000, (d) after giving effect to
such termination or reduction and to any prepayments of Revolving Credit Loans
or cancellation or cash collateralization of Letters of Credit made on the date
thereof in accordance with this Agreement, the aggregate amount of the Lenders’
Revolving Credit Exposures shall not exceed the Total Revolving Credit
Commitment and (e) after giving effect to such termination or reduction
and to any prepayments of Additional/Replacement Revolving Credit Loans of any
tranche or cancellation or cash collateralization of letters of credit made on
the date thereof in accordance with this Agreement, the aggregate amount of the
Lenders’ revolving credit exposures shall not exceed the Total
Additional/Replacement Revolving Credit Commitment for such tranche.”

 

(ff)                                Section 4.3(d) of
the Credit Agreement is hereby replaced in its entirety as follows and a new Section 4.3(e) is
added immediately following such Section 4.3(d) as follows:

 

“(d) The Incremental Term Loan Commitment for
any tranche shall, unless otherwise provided in the documentation governing
such Incremental Term Loan Commitment, terminate at 5:00 p.m.
(New York City time) upon the making of the Incremental Term Loans for
such tranche on the Incremental Facility Closing Date for such tranche.”

 

“(e) The
Additional/Replacement Revolving Credit Commitment for any tranche shall
terminate at 5:00 p.m. (New York City time) on the maturity date for such
tranche specified in the documentation governing such tranche.”

 

(gg)                          Section 5.1(a) of
the Credit Agreement is hereby replaced in its entirety as follows:

 

“(a) The Borrower shall have the right
to prepay Term Loans, Revolving Credit Loans, Additional/Replacement Revolving
Credit Loans and Swingline Loans, without premium or penalty, except as set
forth in clause (b) below, in whole or in part from time to time on the
following terms and conditions:  (a) the
Borrower shall give the Administrative Agent at the Administrative Agent’s
Office written notice (or telephonic notice promptly confirmed in writing) of
its intent to make such prepayment, the amount of such prepayment and in the
case of Eurodollar Loans, the specific Borrowing(s) pursuant to which
made, which notice shall be given by the Borrower no later than (i) in the
case of Term Loans, Additional/Replacement Revolving Credit Loans or Revolving
Credit Loans, 1:00 p.m. (New York City time) (x) one Business
Day prior to (in the case 

 

22

 

of ABR Loans) or (y) three
Business Days prior to (in the case of Eurodollar Loans), or (ii) in the
case of Swingline Loans, 1:00 p.m. (New York City time) on, the date of
such prepayment and shall promptly be transmitted by the Administrative Agent
to each of the relevant Lenders or the Swingline Lender, as the case may be; (b) each
partial prepayment of any Borrowing of Term Loans or Revolving Credit Loans
shall be in a multiple of $100,000 and in an aggregate principal amount of at
least $1,000,000 and each partial prepayment of Swingline Loans shall be in a
multiple of $100,000 and in an aggregate principal amount of at least $100,000;
provided that no partial prepayment of Eurodollar Loans made pursuant to
a single Borrowing shall reduce the outstanding Eurodollar Loans made pursuant
to such Borrowing to an amount less than the Minimum Borrowing Amount for
Eurodollar Loans; (c) any prepayment of Eurodollar Loans pursuant to this Section 5.1
on any day other than the last day of an Interest Period applicable thereto
shall be subject to compliance by the Borrower with the applicable provisions
of Section 2.11.  Each such notice
shall specify the date and amount of such prepayment and the Class(es) and Type(s) of
Loans to be prepaid and the payment amount specified in such notice shall be
due and payable on the date specified therein. 
Each prepayment in respect of any tranche of Term Loans pursuant to this
Section 5.1(a) shall be applied to reduce the Repayment Amount in
such order as the Borrower may determine and may be applied to any Class of
Term Loans as directed by the Borrower; provided that the Borrower may
not prepay (i) Extended Term Loans of any Extension Series pursuant
to this Section 5.1(a) unless such prepayment is accompanied by at
least a pro rata prepayment of Term Loans of the Existing Term Loan Class from
which such Extended Term Loans were exchanged (or such Term Loans of the
Existing Term Loan Class have otherwise been repaid in full).  For the avoidance of doubt, the Borrower may
prepay Term Loans of an Existing Term Loan Class pursuant to this Section 5.1(a) without
any requirement to prepay Extended Term Loans that were exchanged from such
Existing Term Loan Class.  In the event
that the Borrower does not specify the order in which to apply prepayments to
reduce Repayment Amounts, the Borrower shall be deemed to have elected that
such proceeds be applied to reduce the Repayment Amounts in direct order of
maturity.  All prepayments under this Section 5.1(a) shall
also be subject to the provisions of Section 5.2(c).  At the Borrower’s election in connection with
any prepayment pursuant to this Section 5.1(a), such prepayment shall not
be applied to any Loan of a Defaulting Lender.”

 

(hh)                          Section 5.2(c) of
the Credit Agreement is hereby deleted and replaced with the following:

 

“(c) Application to Repayment Amounts.  (i) Subject to clause (ii) of this Section 5.2(c),
each prepayment of Term Loans required by Sections 5.2(a)(i) and (ii) shall be applied to reduce
the scheduled Repayment Amounts of any Class of Term Loans in direct order
of maturity; provided that, subject to the pro rata application to
Repayment Amounts within any Class of Term Loans, the Borrower may
allocate such prepayment in its sole discretion among the Class or Classes
of Term Loans as the Borrower may specify, subject only to the following limitations:
(A) the Borrower shall not allocate to Extended Term Loans of any
Extension Series any mandatory prepayment made pursuant to Section 5.2(a)(ii) unless
such prepayment is accompanied by at least a pro rata prepayment, based upon
the applicable remaining Repayment Amounts due in 

 

23

 

respect thereof, of Term
Loans of the Existing Term Loan Class, if any, from which such Extended Term
Loans were exchanged (or such Term Loans of the Existing Term Loan Class have
otherwise been repaid in full); (B) the Borrower may not allocate any mandatory
prepayments (1) made pursuant to Section 5.2(a)(i) (other than
in connection with a Debt Incurrence Prepayment Event) to any Class of
Term Loans unless such prepayment is accompanied by a pro rata repayment, based
upon the applicable remaining Repayment Amounts due in respect thereof, of Term
Loans of the Existing Term Loan Class, if any, from which such Class of
Term Loans was exchanged and Extended Term Loans, if any, that were originally
exchanged from such Class of Term Loans and (2) made pursuant to Section 5.2(a)(i) in
connection with any Debt Incurrence Prepayment Event unless all Existing Term
Loans have been repaid in full; and (C) prepayments within any Class of
Term Loans must be applied (1) pro rata  to Repayment
Amounts within any Class of Term Loans and (2) to reduce the
scheduled Repayment Amounts in direct order of maturity.

 

(ii) With respect to each such prepayment, (A) the
Borrower will, not later than the date specified in Section 5.2(a) for
offering to make such prepayment, give the Administrative Agent telephonic
notice (promptly confirmed in writing) requesting that the Administrative Agent
provide notice of such prepayment to each Lender of Term Loans, (B) the
Administrative Agent shall promptly provide notice of such prepayment to each
Lender of Term Loans, (C) each Lender of Term Loans will have the right to
refuse any such prepayment by giving written notice of such refusal to the
Borrower within fifteen Business Days after such Lender’s receipt of notice
from the Administrative Agent of such prepayment (and the Borrower shall not
prepay any such Term Loans until the date that is specified in the immediately
following clause), (D) the Borrower will make all such prepayments not so
refused upon the earlier of (x) such fifteenth Business Day and (y) such
time as the Borrower has received notice from each Lender that it consents to
or refuses such prepayment and (E) any prepayment so refused may be
retained by the Borrower; provided, that any prepayment so refused that
relates to Net Cash Proceeds from a Debt Incurrence Prepayment Event in respect
of the issuance of Permitted Additional Notes shall be re-allocated to the then
outstanding Term Loans and shall be applied as set forth above in this
paragraph (c).”

 

(ii)                                  Section 5.2(d) of
the Credit Agreement is hereby deleted and replaced with the following:

 

“(d) Application to Term Loans.  With respect to each prepayment of Term Loans
required by Section 5.2(a), the Borrower may designate the Types of Loans
that are to be prepaid and the specific Borrowing(s) pursuant to which
made; provided, that the Borrower pays any amounts, if any, required to
be paid pursuant to Section 2.11 with respect to prepayments of Eurodollar
Loans made on any date other than the last day of the applicable Interest
Period.  In the absence of a designation
by the Borrower as described in the preceding sentence, the Administrative
Agent shall, subject to the above, make such designation in its reasonable
discretion with a view, but no obligation, to minimize breakage costs owing
under Section 2.11.”

 

24

 

(jj)           Section 5.2(e) of
the Credit Agreement is hereby deleted and replaced with the following:

 

“(e) Application to Revolving Credit Loans;
Mandatory Commitment Reductions.  (i) With respect to each prepayment of Revolving Credit
Loans elected by the Borrower pursuant to Section 5.1 or required
by Section 5.2(b), the Borrower may designate (i) the Types of
Loans that are to be prepaid and the specific Borrowing(s) pursuant to
which made and (ii) the Revolving Credit Loans to be prepaid; provided,
that (x) Eurodollar Loans which are Revolving Credit Loans may be
designated for prepayment pursuant to this Section 5.2 only on the
last day of an Interest Period applicable thereto unless all Eurodollar Loans
with Interest Periods ending on such date of required prepayment and all ABR
Loans have been paid in full; (y) each prepayment of any Loans made
pursuant to a Borrowing shall be applied pro rata among such Loans; and (z) notwithstanding
the provisions of the preceding clause (y), no prepayment made pursuant to Section 5.1
or Section 5.2(b) of Revolving Credit Loans shall be applied
to the Revolving Credit Loans of any Defaulting Lender.  In the absence of a designation by the
Borrower as described in the preceding sentence, the Administrative Agent shall,
subject to the above, make such designation in its reasonable discretion with a
view, but no obligation, to minimize breakage costs owing under Section 2.11.

 

(ii)           With
respect to each mandatory reduction and termination of Revolving Credit
Commitments, Additional/Replacement Revolving Credit Commitments (and any
previously extended Extended Revolving Credit Commitments) required by clause (ii) of
the proviso to Section 2.14(b), the Borrower may designate (A) the
Classes of Commitments to be reduced and terminated, which prior to the
Revolving Credit Maturity Date, may not include any tranche of
Additional/Replacement Revolving Credit Commitments and (B) the
corresponding Classes of Loans to be prepaid; provided that (x) any
such reduction and termination shall apply proportionately and permanently to
reduce the Commitments of each of the Lenders within any such Class, (y) no
such reduction and termination of Extended Revolving Credit Commitments (and
prepayment of Extended Revolving Credit Loans accompanying a corresponding
permanent reduction in such Extended Revolving Credit Commitments) shall be
permitted unless all Existing Revolving Credit Commitments of the Specified
Existing Revolving Credit Commitment Class (and Existing Revolving Credit
Loans related to such Commitments) shall have been terminated and repaid in
full and (z) after giving effect to such termination or reduction and to
any prepayments of Loans or cancellation or cash collateralization of letters
of credit made on the date of each such reduction and termination in accordance
with this Agreement, the aggregate amount of such Lenders’ credit exposures
shall not exceed the remaining Commitments of such Lenders’ in respect of the Class reduced
and terminated.”

 

(kk)         Clause
(ii) of the last sentence of Section 9.1(d) of the Credit
Agreement is deleted and replaced with the following:

 

“(ii) a certificate of an Authorized Officer
and the chief legal officer of the Borrower setting forth the information under
“Current Information” in the Perfection Certificate or confirming that there
has been no change in such information since the 

 

25

 

Closing Date or the date of
the most recent certificate delivered pursuant to this subsection (d), as the
case may be.”

 

(ll)           Section 9.12
of the Credit Agreement is hereby deleted and replaced in its entirety as
follows:

 

“Subject to any applicable limitations set forth in
the Pledge Agreement, Holdings and the Borrower will pledge, and, if
applicable, will cause each Domestic Subsidiary (other than any Unrestricted
Subsidiary, any direct or indirect Domestic Subsidiary of a Foreign Subsidiary
or any Excluded Subsidiary) to pledge, to the Collateral Agent for the benefit
of the Secured Parties, (i) all the Capital Stock of each Domestic
Subsidiary (other than any Unrestricted Subsidiary, any direct or indirect
Domestic Subsidiary of a Foreign Subsidiary, PTC Holdings, Inc. or The
Private Trust Company, N.A. or any other Subsidiary, the pledge of which would
be prohibited by any Applicable Laws or Contractual Obligation) and 65% of the
issued and outstanding Capital Stock of each Foreign Subsidiary directly held
by any Credit Party, in each case, formed or otherwise purchased or acquired
after the Effective Date, in each case pursuant to a supplement to the Pledge
Agreement substantially in the form of Annex A thereto, (ii) all evidences
of Indebtedness in excess of $5,000,000 received by any Credit Party in
connection with any disposition of assets pursuant to Section 10.4(d), in
each case pursuant to a supplement to the Pledge Agreement substantially in the
form of Annex A thereto, and (iii) any global promissory notes executed
after the Closing Date evidencing Indebtedness of Holdings and the Borrower and
each of its Subsidiaries that is owing to any Credit Party, in each case
pursuant to a supplement to the Pledge Agreement in the form of Annex A
thereto.”

 

(mm)       Section 10.1
of the Credit Agreement is hereby amended by:

 

(i)            deleting clause (a) in
its entirety and replacing it with the following:

 

“(a)  Indebtedness owing under the Credit
Documents including pursuant to Sections 2.14 and 2.15 hereof;”

 

(ii)           deleting clause (v) in
its entirety and replacing it with the following:

 

“(v)         Indebtedness
in respect of (i) Permitted Other Debt issued or incurred in exchange for,
or which modifies, extends, refinances, renews, replaces or refunds or the Net
Cash Proceeds therefrom are applied to the prepayment of Term Loans in the
manner set forth in Section 5.2(a)(i), and (ii) any refinancing,
refunding, renewal or extension of any Indebtedness specified in subclause (i) above;
provided that, in the case of this clause (ii) except to the extent
otherwise permitted hereunder, (x) the principal amount of any such
Indebtedness is not increased above the principal amount thereof outstanding
immediately prior to such refinancing, refunding, renewal or extension (except
for any original issue discount thereon and the amount of fees, expenses and
premium in connection with such refinancing) and (y) such Indebtedness
otherwise complies with the definition of Permitted Other Debt; and”

 

26

 

(nn)         Section 10.2(a) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(a)         Liens
arising under (i) the Credit Documents securing the Obligations and (ii) the
Security Documents and the Permitted Other Debt Documents securing Permitted
Other Debt Obligations permitted to be incurred under Section 10.1(v); provided
that, (A) in the case of Liens securing Permitted Other Debt Obligations
that constitute First Lien Obligations pursuant to subclause (ii) above
the applicable Permitted Other Debt Secured Parties (or a representative
thereof on behalf of such holders) shall have entered into with the Collateral
Agent an intercreditor agreement on the terms set forth on Exhibit J-1 or
otherwise reasonably acceptable to the Administrative Agent, and (B) in
the case of Liens securing Permitted Other Debt Obligations that do not
constitute First Lien Obligations pursuant to subclause (ii) above, the
applicable Permitted Other Debt Secured Parties (or a representative thereof on
behalf of such holders) shall have entered into an intercreditor agreement on
the terms set forth on Exhibit J-2 or otherwise reasonably acceptable to
the Administrative Agent.  Without any
further consent of the Lenders, the Administrative Agent and the Collateral
Agent shall be authorized to negotiate, execute and deliver on behalf of the
Secured Parties any intercreditor agreement or any amendment (or amendment and
restatement) to the Security Documents contemplated by this Section 10.2(a);”

 

(oo)         The
last sentence of the first paragraph of Section 13.1 is hereby restated in
its entirety as follows:

 

“Notwithstanding the foregoing,
the Administrative Agent and the Borrower may effect such amendments to this
Agreement as may be necessary or appropriate to effect the provisions set forth
in the proviso to the definition of Required Cash.”

 

(pp)         Exhibit I-2
is hereby deleted in its entirety.

 

(qq)         Exhibit J-1
is hereby deleted in its entirety and replaced with the Pari Passu
Intercreditor Agreement Term Sheet in the form attached hereto as Exhibit A.

 

(rr)           Exhibit J-2
is hereby deleted in its entirety and replaced with the First Lien/Second Lien
Intercreditor Agreement Term Sheet in the form attached hereto as Exhibit B.

 

Section 2                Representations and Warranties, No Default.  Each Credit Party represents and warrants to
the Lenders as of the date hereof and as of the date of effectiveness of this
Amendment:

 

(a)           Each Credit Party is
a duly organized and validly existing corporation or other entity in good
standing under the laws of the jurisdiction of its organization and has the
corporate or other organizational power and authority to execute, delivery and
carry out the terms and provisions of this Amendment and has taken all
necessary corporate or other organizational action to authorize the execution,
delivery and performance of this Amendment. 
Each Credit Party has duly executed and delivered this Amendment and
this Amendment constitutes the legal, valid and binding obligation of such
Credit Party enforceable in accordance with its terms, subject to the effects
of bankruptcy, insolvency, 

 

27

 

fraudulent
conveyance, reorganization and other similar laws relating to or affecting
creditors’ rights generally and general principles of equity (whether
considered in a proceeding in equity or law).

 

(b)           The execution,
delivery and performance by each Credit Party of this Amendment, will not (a) contravene any applicable provision of any material law,
statute, rule, regulation, order, writ, injunction or decree of any court or
governmental instrumentality, (b) result in any breach of any of the
terms, covenants, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of (or the obligation to create or
impose) any Lien upon any of the property or assets of any of the Borrower or
any of the Restricted Subsidiaries pursuant to the terms of any material
indenture, loan agreement, lease agreement, mortgage, deed of trust, agreement
or other material instrument to which Holdings, the Borrower or any of their
Restricted Subsidiaries is a party or by which it or any of their property or
assets is bound, or (c) violate any provision of the certificate of
incorporation, By-Laws or other constitutional documents of Holdings, the
Borrower or any of their Restricted Subsidiary.

 

(c)           The representations
and warranties set forth in the Credit Agreement and in the other Credit
Documents are true and correct in all material respects with the same effect as
if made on the date hereof and the date of effectiveness of this Amendment, except
to the extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties shall have been
true and correct in all material respects as of such earlier date.

 

(d)           At the time of and
after giving effect to this Amendment, no Default or Event of Default has occurred
and is continuing.

 

Section 3                Conditions to Effectiveness of Amendment.  This Amendment will become effective upon:

 

(a)           receipt
by the Administrative Agent of executed signature pages to this Amendment from the Required Lenders and each
Credit Party that is party to the Credit Agreement;

 

(b)           payment
by the Borrower of the reasonable costs and expenses of the Administrative
Agent in connection with this Amendment (including the reasonable fees,
disbursements and other charges of Shearman & Sterling LLP as counsel
to the Agents).

 

(c)           payment
from the Borrower of a consent fee payable in Dollars for the account of each
Lender (other than a Defaulting Lender) that has returned an executed signature
page to this Amendment to the Administrative Agent at or prior to 5:00 p.m.,
New York City time on December 8, 2009 (the “Consent Deadline”) in
the amount of 0.05% of the sum of such Lender’s Revolving Credit Commitment and
outstanding Term Loans.

 

Section 4                Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto on separate counterparts, each
of which when so executed and delivered shall be deemed to be an original, but
all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a
signature page of 

 

28

 

this
Amendment by facsimile or other electronic transmission shall be effective as
delivery of a manually executed counterpart hereof.

 

Section 5                Applicable Law.  THIS AMENDMENT SHALL BE
GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

 

Section 6                Headings.  The headings of this Amendment are for
purposes of reference only and shall not limit or otherwise affect the meaning
hereof.

 

Section 7                Effect of
Amendment.  Except as
expressly set forth herein, this Amendment shall not by implication or
otherwise limit, impair, constitute a waiver of or otherwise affect the rights
and remedies of the Lenders or the other Secured Parties under the Credit
Agreement or any other Credit Document, and shall not alter, modify, amend or
in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement or any other provision of either
such agreement or any other Credit Document. 
Each and every term, condition, obligation, covenant and agreement
contained in the Credit Agreement or any other Credit Document is hereby ratified
and re-affirmed in all respects and shall continue in full force and
effect.  Each Credit Party reaffirms its
obligations under the Credit Documents to which it is party and the validity of
the Liens granted by it pursuant to the Security Documents.  From and after the effective date of this
Amendment, all references to the Credit Agreement in any Credit Document shall,
unless expressly provided otherwise, refer to the Credit Agreement as amended
by this Amendment.

 

29

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed as of the date first above written.

 

	
   

  	
  LPL
  INVESTMENT HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Moore

  
	
   

  	
   

  	
  Name:

  	
  Robert
  J. Moore

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LPL
  HOLDINGS, INC., as the Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Moore

  
	
   

  	
   

  	
  Name:

  	
  Robert
  J. Moore

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INDEPENDENT
  ADVISERS GROUP CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Moore

  
	
   

  	
   

  	
  Name:

  	
  Robert
  J. Moore

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GLENOAK,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Moore

  
	
   

  	
   

  	
  Name:

  	
  Robert
  J. Moore

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President, Finance

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LPL
  INSURANCE ASSOCIATES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stephanie L. Brown

  
	
   

  	
   

  	
  Name:

  	
  Stephanie
  L. Brown

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President, Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LPL
  INDEPENDENT ADVISOR SERVICES GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Moore

  
	
   

  	
   

  	
  Name:

  	
  Robert
  J. Moore

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President, Treasurer

  

 

 

	
   

  	
  ASSOCIATED
  FINANCIAL GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Chad D. Perry

  
	
   

  	
   

  	
  Name:

  	
  Chad
  D. Perry

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ASSOCIATED
  PLANNERS INVESTMENT ADVISORY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Chad D. Perry

  
	
   

  	
   

  	
  Name:

  	
  Chad
  D. Perry

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  

 

 

	
   

  	
  MORGAN
  STANLEY SENIOR FUNDING, INC., as Administrative Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James E. Bonetti

  
	
   

  	
   

  	
  Name:

  	
  James
  E. Bonetti

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MORGAN
  STANLEY & CO., as Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James E. Bonetti

  
	
   

  	
   

  	
  Name:

  	
  James
  E. Bonetti

  
	
   

  	
   

  	
  Title:

  	
  Vice PresidentExhibit
4.1

 

EXECUTION
COPY

 

 

TRUST AGREEMENT

 

by and between

 

HARLEY-DAVIDSON
CUSTOMER FUNDING CORP.,

as Trust
Depositor,

 

and

 

WILMINGTON TRUST
COMPANY,

as Owner Trustee

 

 

Dated as of November 1,
2009

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE ONE

  	
  DEFINITIONS

  	
  1

  
	
  Section 1.01.

  	
  Capitalized Terms

  	
  1

  
	
  Section 1.02.

  	
  Other Definitional Provisions

  	
  3

  
	
  Section 1.03.

  	
  Usage of Terms

  	
  3

  
	
  Section 1.04.

  	
  Section References

  	
  3

  
	
  Section 1.05.

  	
  Accounting Terms

  	
  3

  
	
  ARTICLE TWO

  	
  ORGANIZATION

  	
  4

  
	
  Section 2.01.

  	
  Name

  	
  4

  
	
  Section 2.02.

  	
  Office

  	
  4

  
	
  Section 2.03.

  	
  Purposes and Powers

  	
  4

  
	
  Section 2.04.

  	
  Appointment of Owner Trustee

  	
  5

  
	
  Section 2.05.

  	
  Initial Capital Contribution of Owner Trust Estate

  	
  5

  
	
  Section 2.06.

  	
  Declaration of Trust

  	
  5

  
	
  Section 2.07.

  	
  Liability of Trust Depositor

  	
  5

  
	
  Section 2.08.

  	
  Title to Trust Property

  	
  5

  
	
  Section 2.09.

  	
  Situs of Trust

  	
  6

  
	
  Section 2.10.

  	
  Representations and Warranties of the Trust Depositor

  	
  6

  
	
  Section 2.11.

  	
  Federal Income Tax Treatment

  	
  7

  
	
  Section 2.12.

  	
  Texas State Tax Matters

  	
  7

  
	
  ARTICLE THREE

  	
  TRUST CERTIFICATES AND
  TRANSFER OF INTERESTS

  	
  8

  
	
  Section 3.01.

  	
  Initial Ownership

  	
  8

  
	
  Section 3.02.

  	
  The Trust Certificate

  	
  8

  
	
  Section 3.03.

  	
  Authentication and Delivery of Trust Certificates

  	
  8

  
	
  Section 3.04.

  	
  Registration of Transfer and Exchange of Trust
  Certificates

  	
  8

  
	
  Section 3.05.

  	
  Mutilated, Destroyed, Lost or Stolen Trust Certificates

  	
  9

  
	
  Section 3.06.

  	
  Person Deemed Owner

  	
  10

  
	
  Section 3.07.

  	
  Access to List of Certificateholders’ Name and Address

  	
  10

  
	
  Section 3.08.

  	
  Maintenance of Office or Agency

  	
  10

  
	
  Section 3.09.

  	
  Trust Certificate

  	
  10

  
	
  Section 3.10.

  	
  Appointment of Paying Agent

  	
  10

  
	
  Section 3.11.

  	
  Ownership by Trust Depositor of Trust Certificate

  	
  11

  
	
  Section 3.12.

  	
  Repayment of Trust Certificates

  	
  11

  
	
  ARTICLE FOUR

  	
  ACTIONS BY OWNER
  TRUSTEE AND CERTIFICATEHOLDERS

  	
  11

  
	
  Section 4.01.

  	
  Prior Notice to Owner with Respect to Certain Matters

  	
  11

  
	
  Section 4.02.

  	
  Action by Owner with Respect to Certain Matters

  	
  12

  
	
  Section 4.03.

  	
  Action by Owners with Respect to Bankruptcy

  	
  12

  
	
  Section 4.04.

  	
  Restrictions on Owners’ Power

  	
  12

  
	
  Section 4.05.

  	
  Majority of the Trust Certificates Control

  	
  12

  
	
  ARTICLE FIVE

  	
  APPLICATION OF TRUST
  FUNDS; CERTAIN DUTIES

  	
  12

  
	
  Section 5.01.

  	
  Application of Trust Funds

  	
  12

  
	
  Section 5.02.

  	
  Method of Payment

  	
  13

  
	
  Section 5.03.

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

  	
  13

  
	
  Section 5.04.

  	
  Signature on Returns; Tax Matters Partner

  	
  14

  
	
  ARTICLE SIX

  	
  AUTHORITY AND DUTIES OF
  OWNER TRUSTEE

  	
  14

  
	
  Section 6.01.

  	
  General Authority

  	
  14

  
	
  Section 6.02.

  	
  General Duties

  	
  14

  
	
  Section 6.03.

  	
  Action Upon Instruction

  	
  14

  
	
  Section 6.04.

  	
  No Duties Except as Specified in this Agreement or in
  Instructions

  	
  15

  

 

 

	
  Section 6.05.

  	
  No Action Except Under Specified Documents or Instructions

  	
  16

  
	
  Section 6.06.

  	
  Restrictions

  	
  16

  
	
  Section 6.07.

  	
  Pennsylvania Motor Vehicle Sales Finance Act Licenses

  	
  16

  
	
  ARTICLE SEVEN

  	
  CONCERNING THE OWNER
  TRUSTEE

  	
  16

  
	
  Section 7.01.

  	
  Acceptance of Trusts and Duties

  	
  16

  
	
  Section 7.02.

  	
  Furnishing of Documents

  	
  17

  
	
  Section 7.03.

  	
  Representations and Warranties

  	
  17

  
	
  Section 7.04.

  	
  Reliance; Advice of Counsel

  	
  18

  
	
  Section 7.05.

  	
  Not Acting in Individual Capacity

  	
  18

  
	
  Section 7.06.

  	
  Owner Trustee Not Liable for Trust Certificate, Notes or
  Contracts

  	
  18

  
	
  Section 7.07.

  	
  Owner Trustee May Own Trust Certificate and Notes

  	
  19

  
	
  ARTICLE EIGHT

  	
  COMPENSATION OF OWNER
  TRUSTEE

  	
  19

  
	
  Section 8.01.

  	
  Owner Trustee’s Fees and Expenses

  	
  19

  
	
  Section 8.02.

  	
  Indemnification

  	
  19

  
	
  Section 8.03.

  	
  Payments to the Owner Trustee

  	
  19

  
	
  ARTICLE NINE

  	
  TERMINATION OF TRUST
  AGREEMENT

  	
  20

  
	
  Section 9.01.

  	
  Termination of Trust Agreement

  	
  20

  
	
  ARTICLE TEN

  	
  SUCCESSOR OWNER
  TRUSTEES AND ADDITIONAL OWNER TRUSTEES

  	
  20

  
	
  Section 10.01.

  	
  Eligibility Requirements for Owner Trustee

  	
  20

  
	
  Section 10.02.

  	
  Resignation or Removal of Owner Trustee

  	
  21

  
	
  Section 10.03.

  	
  Successor Owner Trustee

  	
  21

  
	
  Section 10.04.

  	
  Merger or Consolidation of Owner Trustee

  	
  22

  
	
  Section 10.05.

  	
  Appointment of Co-Trustee or Separate Trustee

  	
  22

  
	
  ARTICLE ELEVEN

  	
  MISCELLANEOUS

  	
  23

  
	
  Section 11.01.

  	
  Supplements and Amendments

  	
  23

  
	
  Section 11.02.

  	
  No Legal Title to Trust Estate in Owner

  	
  24

  
	
  Section 11.03.

  	
  Limitations on Rights of Others

  	
  24

  
	
  Section 11.04.

  	
  Notices

  	
  24

  
	
  Section 11.05.

  	
  Severability of Provisions

  	
  25

  
	
  Section 11.06.

  	
  Counterparts

  	
  25

  
	
  Section 11.07.

  	
  Successors and Assigns

  	
  25

  
	
  Section 11.08.

  	
  Covenants of the Trust Depositor

  	
  25

  
	
  Section 11.09.

  	
  No Petition

  	
  25

  
	
  Section 11.10.

  	
  No Recourse

  	
  26

  
	
  Section 11.11.

  	
  Headings

  	
  26

  
	
  Section 11.12.

  	
  Governing Law

  	
  26

  
	
  Section 11.13.

  	
  Trust Certificate Transfer Restrictions

  	
  26

  
	
  Section 11.14.

  	
  Trust Depositor Payment Obligation

  	
  26

  
	
  Section 11.15.

  	
  Certificateholder’s TALF-Related Signing Authority

  	
  26

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  Exhibit A -
  Form of Certificate of Trust

  	
  A-1

  
	
  Exhibit B -
  Form of Trust Certificate

  	
  B-1

  

 

ii

 

TRUST AGREEMENT dated as
of November 1, 2009, between HARLEY-DAVIDSON CUSTOMER FUNDING CORP., a
Nevada corporation, as Trust Depositor (the “Trust
Depositor”), and WILMINGTON TRUST COMPANY, a Delaware banking
corporation, as owner trustee (the  “Owner Trustee”).

 

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

 

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

 

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

 

ARTICLE ONE

 

DEFINITIONS

 

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

 

“Administration Agreement” means the
Administration Agreement, dated as of December 1, 2009, among the Trust,
the Trust Depositor, the Indenture Trustee and Harley-Davidson Credit, as
administrator.

 

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

 

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

 

“Certificate Distribution Account” means
the account established and maintained as such pursuant to Section 5.01.

 

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

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Indenture” means the Indenture dated as of
December 1, 2009 between the Trust and The Bank of New York Mellon Trust
Company, N.A.

 

“Owner” means each Holder of a Trust
Certificate.

 

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

 

“Owner Trustee Corporate Trust Office”
means the office of the Owner Trustee at which its corporate trust business
shall be administered, which initially shall be 1100 North Market Street,
Wilmington, Delaware 19890-1605 Attn: Corporate Trust Administration, or such
other office at such other address as the Owner Trustee may designate from time
to time by notice to the Certificateholder, the Servicer, the Indenture
Trustee, the Trust Depositor and Harley-Davidson Credit.

 

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

 

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

 

“Qualified Institutional Buyer” means a “qualified
institutional buyer” as defined in Rule 144A under the Securities Act.

 

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

 

“Sale and Servicing Agreement”  means the Sale and Servicing Agreement,
dated as of December 1, 2009, among the Trust, as Issuer, the Trust
Depositor, Harley-Davidson Credit, as servicer, and The Bank of New York Mellon
Trust Company, N.A., as Indenture Trustee, as the same may be amended or
supplemented from time to time.

 

2

 

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

 

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

 

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

 

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

 

“Trust” means the trust established by this
Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

ARTICLE TWO

ORGANIZATION

 

Section 2.01.         Name.  The Trust
created hereby shall be known as “Harley-Davidson  Motorcycle Trust 2009-4”, in which
name the Owner Trustee may conduct the activities of the Trust, make and
execute contracts and other instruments on behalf of the Trust and sue and be
sued.

 

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

 

Section 2.03.         Purposes and Powers.

 

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

 

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

 

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

 

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

 

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

 

(v)           to enter into derivative transactions in
connection with the Notes or otherwise;

 

(vi)          to execute and deliver and, as applicable,
enter into and perform its obligations under, one or more certifications as to
TALF eligibility, one or more indemnity undertakings and other documents,
certificates, notices, press releases, agreements and instruments contemplated
thereby or related thereto or otherwise necessary or incidental to qualifying
or maintaining the Class A Notes as “eligible collateral” under the
Federal Reserve Bank of New York’s Term Asset-Backed Securities Loan Facility;

 

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

 

4

 

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

 

The Trust shall not engage in any activities other
than in connection with the foregoing. 
Nothing contained herein shall be deemed to authorize the Owner Trustee
to engage in any business operations or any activities other than those set
forth in the introductory sentence of this Section.  Specifically, the Owner Trustee shall have no
authority to engage in any business operations, or acquire any assets other
than those specifically included in the Trust Estate under Section 1.01,
or otherwise vary the assets held by the Trust. 
Similarly, the Owner Trustee shall have no discretionary duties other
than performing those ministerial acts set forth above necessary to accomplish
the purpose of this Trust as set forth in the introductory sentence of this
Section.  Notwithstanding Section 2.03(a)(iii) above,
the Trust shall not assign, sell or transfer the Contracts except as
contemplated or permitted by the Indenture or the Sale and Servicing Agreement,
without the prior consent of the Trust Depositor.

 

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

 

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

 

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

 

Section 2.07.         Liability of Trust Depositor.

 

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

 

(b)           Except as provided in the Statutory Trust Statute, no
Certificateholder shall be personally liable for any liability of the Trust.

 

Section 2.08.        Title to Trust Property. 
Legal title to the Trust Estate shall be vested at all times in the
Trust as a separate legal entity except where applicable law in any
jurisdiction requires title to any 

 

5

 

part of the Trust Estate to be vested in an Owner
Trustee or Owner Trustees, in which case title shall be deemed to be vested in
the Owner Trustee, a co-trustee and/or a separate trustee, as the case may be.

 

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

 

Section 2.10.         Representations and Warranties of the Trust
Depositor.

 

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

 

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

 

(ii)           The Trust Depositor is duly qualified to
do business as a foreign corporation in good standing and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business requires such qualifications,
and where the failure to so qualify or obtain such licenses and approvals would
have a material adverse effect on the Trust, the Contracts, the operations or
business of the Servicer, or the ability of the Trust Depositor to perform its
obligations under this Agreement.

 

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

 

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

 

6

 

on
the Trust, the Contracts, the operations or business of the Servicer, or the
ability of the Trust Depositor to perform its obligations under this Agreement.

 

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

 

Section 2.11.         Tax Treatment.

 

It is the intention of
the Trust Depositor that (i) so long as there is only one
Certificateholder, the Trust be disregarded as a separate entity pursuant to
Treasury Regulations Section 301.7701-3(b)(1)(ii) as in effect for
periods after January 1, 1997 (and, in such case, Trust items of income,
gain, loss and deduction for any month as determined for federal income tax
purposes shall be allocated entirely to the Trust Depositor (or subsequent
purchaser of the sole Trust Certificate) as the sole Certificateholder) and (ii) if
there is more than one Certificateholder, the Issuer shall be treated as a
partnership for federal income, state and local income and single business tax
and any other income taxes.  The parties
agree that, unless otherwise required by appropriate tax authorities, the Trust
will file or cause to be filed annual or other necessary returns, reports and
other forms consistent with the characterization of the Trust as provided in
the preceding sentence for such tax purposes.

 

Section 2.12.         Texas State Tax Matters.

 

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

 

7

 

ARTICLE THREE

TRUST CERTIFICATES AND TRANSFER OF INTERESTS

 

Section 3.01.         Initial Ownership.  Upon the
formation of the Trust by the contribution by the Trust Depositor pursuant to Section 2.05
and until the issuance of the Trust Certificates, the Trust Depositor shall be
the sole beneficiary of the Trust.

 

Section 3.02.         The Trust Certificates. 
The Trust Certificates shall be issued in minimum denominations of
$100,000 and integral multiples thereof; provided, however, that one Trust
Certificate may be issued in such denomination as required to include any
residual amount.  The Trust Certificates
shall be substantially in the form of Exhibit B
hereto.  The Trust Certificates shall be
executed by the Owner Trustee on behalf of the Trust by manual or facsimile
signature of an authorized officer of the Owner Trustee and shall be deemed to
have been validly issued when so executed. 
A Trust Certificate bearing the manual or facsimile signature of
individuals who were, at the time when such signatures were affixed, authorized
to sign on behalf of the Owner Trustee shall be a valid and binding obligation
of the Trust, notwithstanding that such individuals or any of them have ceased
to be so authorized prior to the authentication and delivery of such Trust
Certificate or did not hold such offices at the date of such Trust
Certificate.  Each Trust Certificate
shall be dated the date of its authentication.

 

Section 3.03.         Authentication and Delivery of Trust Certificates. 
The Owner Trustee shall cause to be authenticated and delivered upon the
order of the Trust Depositor, in exchange for the Contracts and the other Trust
Assets, simultaneously with the sale, assignment and transfer to the Trust of
the Contracts and other Trust Assets, and the constructive delivery to the
Owner Trustee of the Contract Files and the other Trust Assets, a Trust
Certificate duly authenticated by the Owner Trustee, evidencing the entire
ownership of the Trust.  No Trust
Certificate shall be valid for any purpose unless there appears on such Trust
Certificate a certificate of authentication substantially in the form set forth
in the form of Trust Certificate attached hereto as Exhibit B,
executed by the Owner Trustee or its authenticating agent, by manual signature,
and such certificate upon any Trust Certificate shall be conclusive evidence,
and the only evidence, that such Trust Certificate has been duly authenticated
and delivered hereunder.  Upon issuance,
authorization and delivery pursuant to the terms hereof, the Trust Certificates
will be entitled to the benefits of this Agreement.

 

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

 

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

 

8

 

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

 

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

 

(d)           No transfer of a Trust Certificate shall be made
unless such transfer is made in a transaction which does not require
registration or qualification under the Securities Act of 1933 or qualification
under any state securities or “Blue Sky” laws. 
Neither the Owner Trustee nor the Certificate Registrar shall effect the
registration of any transfer of a Trust Certificate unless prior to such
transfer the Owner Trustee shall have received an Opinion of Counsel that (x) the
transfer of such Trust Certificate is being made pursuant to an effective
registration under the Securities Act of 1933 or is exempt from the
registration requirements of the Securities Act of 1933 and (y) such transfer
will not cause the Trust to be treated as an association (or a publicly traded
partnership) taxable as a corporation for federal income tax purposes. 
Any transferee of a Trust Certificate must be either an Affiliate of the
Trust Depositor or a Qualified Institutional Buyer.

 

Notwithstanding anything
else to the contrary herein, any purported transfer of a Trust Certificate to
or on behalf of a Benefit Plan or utilizing the assets of a Benefit Plan shall
be void and of no effect.  The Owner
Trustee shall not be obligated to register any transfer of a Trust Certificate
unless each of the transferor and the transferee have certified to the Owner
Trustee that such transfer does not violate any of the transfer restrictions
stated herein.  The Owner Trustee shall
not be liable to any Person for registering any transfer based on such certifications.

 

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

 

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

 

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

 

9

 

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

 

Section 3.07.         Access to List of Certificateholders’ Name and
Address.  The Owner Trustee shall furnish or cause to
be furnished to the Servicer and the Trust Depositor, within 15 days after
receipt by the Certificate Registrar of a written request therefor from the
Servicer or the Trust Depositor, the name and address of the Certificateholder
as of the most recent Record Date in such form as the Servicer or the Trust
Depositor may reasonably require.  If
three or more Certificateholders or one or more Holders of Certificates
evidencing, in the aggregate, not less than 25% of the Certificate Balance
apply in writing to the Owner Trustee, and such application states that the
applicants desire to communicate with other Certificateholders with respect to
their rights under this Agreement or under the Certificates and such
application is accompanied by a copy of the communication that such applicants
propose to transmit, then the Owner Trustee shall, within five Business Days
after the receipt of such application, afford such applicants access during
normal business hours to the current list of Certificateholders.  Each Certificateholder, by receiving and
holding a Trust Certificate, agrees with the Servicer, the Trust Depositor and
the Owner Trustee that none of the Servicer, the Trust Depositor or the Owner
Trustee shall be held accountable by reason of the disclosure of any such
information as to the name and address of such Certificateholder hereunder,
regardless of the source from which such information was derived.

 

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

 

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

 

Section 3.10.         Appointment of Paying Agent. 
The Paying Agent shall make distributions to the Certificateholders from
the Certificate Distribution Account pursuant to Section 5.01(a) and
shall report the amounts of such distributions to the Owner Trustee.  The Paying Agent initially shall be
Wilmington Trust Company and any co-paying agent chosen by the Paying Agent
that is acceptable to the Owner Trustee. 
Each Paying Agent shall be permitted to resign as Paying Agent upon 30
days’ written notice to the Owner Trustee. 
In the event that Wilmington Trust Company shall no longer be the Paying
Agent, the Owner Trustee shall appoint a successor to act as Paying Agent
(which shall be a bank or trust company). 
The Owner Trustee shall cause such successor Paying Agent or any
additional Paying Agent appointed by the Owner Trustee to execute and deliver
to the Owner Trustee an instrument in which such successor Paying Agent or
additional Paying Agent shall agree with the Owner Trustee that, as Paying
Agent, such successor Paying Agent or additional Paying Agent will hold all
sums, if any, held by it for payment to the Certificateholder in trust for the
benefit of the Certificateholder entitled thereto until such sums shall be paid
to such Certificateholder.  The Paying
Agent shall return all unclaimed funds to the 

 

10

 

Owner Trustee and upon removal of a Paying Agent such
Paying Agent shall also return all funds in its possession to the Owner
Trustee.  The provisions of Sections
7.01, 7.03, 7.04 and 8.01 shall apply to the Owner Trustee also in its role as
Paying Agent, for so long as the Owner Trustee shall act as Paying Agent and,
to the extent applicable, to any other paying agent appointed hereunder.  Any reference in this Agreement to the Paying
Agent shall include any co-paying agent unless the context requires otherwise.

 

Section 3.11.         Ownership by Trust Depositor of Initial Trust
Certificates.  The Trust Depositor shall on the Closing Date
hold the 100% of the Trust Certificates.

 

Section 3.12.         Repayment of Trust Certificates. 
In the event of an optional purchase pursuant to Section 7.10 of
the Sale and Servicing Agreement, the Trust Certificates will be prepaid in
whole, but not in part, at an aggregate prepayment price equal to the aggregate
Certificate Balance of all the Trust Certificates.

 

ARTICLE FOUR

ACTIONS BY OWNER TRUSTEE AND CERTIFICATEHOLDERS

 

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

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

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

 

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

 

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

 

Section 4.05.         Majority of the Trust Certificates Control. 
Except as otherwise expressly provided herein, any action that may be
taken by the Certificateholders under this Agreement may be taken by the
Holders of the Trust Certificates evidencing not less than a majority of the
Certificate Balance.  Except as expressly
provided herein, any written notice of the Certificateholders delivered
pursuant to this Agreement shall be effective if signed by Holders of the Trust
Certificates evidencing not less than a majority of the Certificate Balance at
the time of the delivery of such notice.

 

ARTICLE FIVE

 

APPLICATION OF
TRUST FUNDS;

CERTAIN DUTIES

 

Section 5.01.         Establishment of Trust Account; Application of
Trust Funds.

 

(a)           On or before the Distribution Date on which the Notes
have been paid in full, the Owner Trustee, for the benefit of the
Certificateholders, shall establish and maintain (or shall cause to be
established and maintained) in the name of the Issuer an Eligible Account (the “Certificate Distribution Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Certificateholders.

 

12

 

The Issuer shall possess all right, title and interest
in funds on deposit from time to time in the Certificate Distribution Account
and in the proceeds thereof.  Except as
otherwise expressly provided herein, the Certificate Distribution Account shall
be under the sole dominion and control of the Owner Trustee for the benefit of
the Certificateholders. If, at any time, the Certificate Distribution Account
ceases to be an Eligible Account, the Owner Trustee (or the Depositor on behalf
of the Owner Trustee, if the Certificate Distribution Account is not then held
by the Owner Trustee or an Affiliate thereof) shall within ten Business Days
establish a new Certificate Distribution Account as an Eligible Account and
shall transfer any cash and/or any investments to such new Certificate
Distribution Account. Monies on deposit in the Certificate Distribution Account
may be invested in Eligible Investments upon the terms set forth in Section 5.05
of the Sale and Servicing Agreement, as if the Certificate Distribution Account
were a “Trust Account”.

 

(b)           On each Distribution Date, the Paying Agent will
distribute to the Certificateholders from amounts on deposit in the Certificate
Distribution Account, on a pro rata basis in accordance with their Certificate
Balance, amounts received pursuant to Section 7.05 of the Sale and
Servicing Agreement with respect to such Distribution Date.

 

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

 

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

 

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

 

Section 5.03.         Accounting and Reports to the Certificateholders,
Owners, the Internal Revenue Service and Others.  The
Administrator shall (a) maintain (or cause to be maintained) the books of
the Trust on a calendar year basis and the accrual method of accounting, (b) deliver
to the Owners, as may be required by the Code and applicable Treasury
Regulations, such information as may be required to enable each Owner to
prepare its federal and state income tax returns, (c) file such tax
returns relating to the Trust and make such elections as from time to time may
be required or appropriate under any applicable state or federal statute or any
rule or regulation thereunder so as to maintain the federal income tax
treatment for the Trust as set forth in Section 2.11, (d) cause such
tax returns to be signed in the manner required by law and (e) collect or
cause to be collected any withholding tax as described in and in 

 

13

 

accordance with Section 5.01(c) with respect
to income or distributions to Owners. 
The Owner Trustee shall elect under Section 1278 of the Code to
include in income currently any market discount that accrues with respect to
the Contracts.  If applicable, the Owner Trustee
shall not make the election provided under Section 754 or Section 761
of the Code.

 

Section 5.04.         Signature on Returns; Tax Matters Partner.

 

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

 

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

 

ARTICLE SIX

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

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

 

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

 

Section 6.03.         Action Upon Instruction.

 

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

 

14

 

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

 

(c)           Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or under any other Transaction Document, the Owner Trustee shall
promptly give notice (in such form as shall be appropriate under the circumstances)
to the Owners requesting instruction as to the course of action to be adopted,
and to the extent the Owner Trustee acts in good faith in accordance with any
written instruction of the Owners received, the Owner Trustee shall not be
liable on account of such action to any Person. 
If the Owner Trustee shall not have received appropriate instruction
within ten days of such notice (or within such shorter period of time as
reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from
taking such action not inconsistent with this Agreement and the other
Transaction Documents, as it shall deem to be in the best interests of the
Owners, and shall have no liability to any Person for such action or inaction.

 

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

 

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

 

15

 

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

 

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

 

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

 

ARTICLE SEVEN

CONCERNING THE OWNER TRUSTEE

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

(f)            the Owner Trustee shall not be liable for the default
or misconduct of the Administrator, the Trust Depositor, the Indenture Trustee
or the Servicer under any of the Transaction Documents or otherwise and the
Owner Trustee shall have no obligation or liability to perform the obligations
of the Trust under this Agreement or the other Transaction Documents that are
required to be performed by the Administrator under the Administration
Agreement, the Indenture Trustee under the Indenture, or the Servicer or the
Trust Depositor under the Sale and Servicing Agreement; and

 

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

 

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

 

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

 

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

 

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

 

(c)           Neither the execution nor the delivery by it of this
Agreement, nor the consummation by it of the transactions contemplated hereby
nor compliance by it with any of the terms or 

 

17

 

provisions hereof will contravene any federal or
Delaware law, governmental rule or regulation governing the banking or
trust powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or bylaws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound or result in the creation or imposition of
any lien, charge or encumbrance on the Trust Estate resulting from actions by
or claims against the Owner Trustee individually which are unrelated to this
Agreement or the other Transaction Documents.

 

Section 7.04.         Reliance; Advice of Counsel.

 

(a)           The Owner Trustee shall incur no liability to anyone
in acting upon any signature, instrument, notice, resolution, request, consent,
order, certificate, report, opinion, bond or other document or paper believed
by it to be genuine and believed by it to be signed by the proper party or
parties.  The Owner Trustee may accept a
certified copy of a resolution of the board of directors or other governing
body of any corporate party as conclusive evidence that such resolution has
been duly adopted by such body and that the same is in full force and
effect.  As to any fact or matter the
method of determination of which is not specifically prescribed herein, the
Owner Trustee may for all purposes hereof rely on a certificate, signed by the
president or any vice president or by the treasurer or other authorized
officers of the relevant party, as to such fact or matter and such certificate
shall constitute full protection to the Owner Trustee for any action taken or
omitted to be taken by it in good faith in reliance thereon.

 

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

 

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

 

Section 7.06.         Owner Trustee Not Liable for Trust Certificate,
Notes or Contracts.  The recitals contained herein and in the
Trust Certificates (other than the signature and countersignature of the Owner
Trustee and the certificate of authentication on the Trust Certificates) shall
be taken as the statements of the Trust Depositor, and the Owner Trustee
assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as
to the validity or sufficiency of this Agreement, any other Transaction
Document or the Trust Certificates (other than the signature and
countersignature of the Owner Trustee and the certificate of authentication on
the Trust Certificates) or the Notes, or of any Contract or related
documents.  The Owner Trustee shall at no
time have any responsibility or liability for or with respect to the legality,
validity and enforceability of any Contract, or the perfection and priority of
any security interest created by any Contract in any Motorcycle or the
maintenance of any such perfection 

 

18

 

and priority, or for or with respect to the
sufficiency of the Trust Estate or its ability to generate the payments to be
distributed to the Certificateholders under this Agreement or the Noteholders
under the Indenture or the Sale and Servicing Agreement, including, without
limitation, the existence, condition and ownership of any Motorcycle; the
existence and enforceability of any insurance thereon; the existence and
contents of any Contract on any computer or other record thereof; the validity
of the assignment of any Contract to the Trust or of any intervening
assignment; the completeness of any Contract; the performance or enforcement of
any Contract; the compliance by the Trust Depositor or the Servicer with any
warranty or representation made under any Transaction Document or in any
related document or the accuracy of any such warranty or representation; or any
action of the Administrator, the Indenture Trustee or the Servicer or any
subservicer taken in the name of the Owner Trustee.

 

Section 7.07.         Owner Trustee May Own Trust Certificate and
Notes.  The Owner Trustee in its individual or any
other capacity may become the owner or pledgee of a Trust Certificate or Notes
and may deal with the Trust Depositor, the Administrator, the Indenture Trustee
and the Servicer in banking transactions with the same rights as it would have
if it were not Owner Trustee.

 

ARTICLE EIGHT

COMPENSATION OF OWNER TRUSTEE

 

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

 

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

 

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

 

19

 

ARTICLE NINE

TERMINATION OF TRUST AGREEMENT

 

Section 9.01.         Termination of Trust Agreement.

 

(a)           This Agreement (other than Article Eight) and the
Trust shall terminate and be of no further force or effect upon the earlier of (i) final
distribution by the Owner Trustee of all moneys or other property or proceeds
of the Trust Estate in accordance with the terms of the Indenture, the Sale and
Servicing Agreement and Article Five and (ii) the expiration of 21
years from the death of the survivor of the descendants of Joseph P. Kennedy,
the late Ambassador of the United States to the Court of St. James’s, living on
the date hereof.  The bankruptcy,
liquidation, dissolution, death or incapacity of any Owner shall not (i) operate
to terminate this Agreement or the Trust, (ii) entitle such Owner’s legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or Trust Estate or (iii) otherwise affect the rights, obligations
and liabilities of the parties hereto.

 

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

 

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

 

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

 

ARTICLE TEN

 

SUCCESSOR OWNER
TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

Section 10.01.       Eligibility Requirements for Owner Trustee. 
The Owner Trustee shall at all times be a corporation satisfying the
provisions of Section 3807(a) of the Statutory Trust  Statute; authorized to 

 

20

 

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

 

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

 

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

 

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

 

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

 

21

 

such other things as may reasonably be required for
fully and certainly vesting and confirming in the successor Owner Trustee all
such rights, powers, duties and obligations.

 

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

 

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

 

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

 

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

 

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

 

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

 

22

 

Estate or any
portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the direction of
the Owner Trustee;

 

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

 

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

 

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

 

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

 

ARTICLE ELEVEN

MISCELLANEOUS

 

Section 11.01.       Supplements and Amendments.

 

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

 

(b)           This Agreement may also be amended
from time to time by the Trust Depositor, and the Owner Trustee, with the
consent of the Required Holders and the Holders of Trust Certificates evidencing
not less than a majority of the Certificate Balance, for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement, or of modifying in any manner the rights of the
Noteholders or the Certificateholders; provided, however,
that no such amendment shall increase or reduce in any manner the amount of, or
accelerate or delay the timing of, (i) collections of payments on
Contracts or distributions that shall be required to be made for the benefit of

 

23

 

the Noteholders or the Certificateholders, or (ii) eliminate
the Certificateholders’ consent or reduce the aforesaid percentage of the
Outstanding Amount of the Notes required to consent to any such amendment,
without the consent of the Holder of all outstanding Notes and Trust
Certificates affected thereby.

 

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

 

(d)           Promptly after the execution of any
such amendment or consent, the Owner Trustee shall furnish written notification
of the substance of such amendment or consent to each Certificateholder.  It shall not be necessary for the consent of
any Certificateholder, the Noteholders or the Indenture Trustee pursuant to
this Section to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof.  The manner of obtaining such
consents (and any other consents of the Certificateholders provided for in this
Agreement or in any other Transaction Document) and of evidencing the
authorization of the execution thereof by the Certificateholders shall be
subject to such reasonable requirements as the Owner Trustee may prescribe.

 

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

 

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

 

Section 11.02.       No Legal Title to Trust Estate in Owners. 
No Owner shall have legal title to any part of the Trust Estate.  The Owners shall be entitled to receive
distributions with respect to their undivided ownership interest herein only in
accordance with Articles Five and Nine. 
No transfer, by operation of law or otherwise, of any right, title or
interest of the Owners to and in their ownership interest in the Trust Estate
shall operate to terminate this Agreement or the trusts hereunder or entitle
any transferee to an accounting or to the transfer to it of legal title to any
part of the Trust Estate.

 

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

 

Section 11.04.       Notices.  All notices,
demands, certificates, requests and communications hereunder (“notices”) shall be in writing and shall be effective (a) upon
receipt when sent through the U.S. mails, registered or certified mail, return
receipt requested, postage prepaid, with such receipt to be effective the date
of delivery indicated on the return receipt, or (b) one Business Day after
delivery to an overnight courier, or (c) on the date personally delivered
to an Authorized Officer of the party to which sent, or (d) on the date
transmitted by legible telecopier transmission with a confirmation of receipt,
in all 

 

24

 

cases addressed to the recipient at the address for
such recipient set forth in the Sale and Servicing Agreement.

 

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

 

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

 

Section 11.06.       Counterparts. 
This Agreement may be executed in several counterparts, each of which
shall be an original and all of which shall constitute but one and the same
instrument.

 

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

 

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

 

Section 11.09.       No Petition.

 

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

 

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

 

25

 

with any obligations relating to the Trust
Certificates, the Notes, this Agreement or any of the other Transaction
Documents.

 

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

 

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

 

Section 11.12.       Governing Law. 
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

 

Section 11.13.       Trust Certificate Transfer Restrictions. 
No Trust Certificate may be acquired by or for the account of a Benefit
Plan.  By accepting and holding a Trust
Certificate, the Holder thereof shall be required to have represented and
warranted that it is not a Benefit Plan and that it is not acquiring and will
not hold such Trust Certificate for the account of, or with plan assets of, a
Benefit Plan.

 

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

 

Section 11.15.       Certificateholder’s TALF-Related Signing Authority. 
In connection with the Federal Reserve Bank of New York’s Term
Asset-Backed Securities Loan Facility (“TALF”), the
Trust Depositor shall be authorized to execute and deliver on behalf of the
Trust and cause the Trust to perform (i) any Term Asset-Backed Securities
Loan Facility Undertaking, (ii) any Certification as to TALF Eligibility, (iii) any
Indemnity Undertaking and (iv) any other documents, certificates,
agreements and instruments contemplated thereby or related thereto or otherwise
necessary or incidental to qualifying or maintaining the Class A Notes as “eligible
collateral” under TALF.  Any action taken
on behalf of the Trust by the Trust Depositor prior to the date hereof with
respect to TALF, including execution of any Indemnity Undertaking and
Certificate as to TALF Eligibility, is hereby ratified.

 

[signature page follows]

 

26

 

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

 

	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING

  
	
   

  	
  CORP., as Trust
  Depositor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Perry A.
  Glassgow

  
	
   

  	
  Printed Name:

  	
  Perry A.
  Glassgow

  
	
   

  	
  Title:   Vice
  President, Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.
  Christopher Murphy

  
	
   

  	
  Printed Name:

  	
  J. Christopher Murphy

  
	
   

  	
  Title:   Financial
  Services Officer

  
					

 

Signature Page to Trust
Agreement

 

 

EXHIBIT A

 

FORM OF
CERTIFICATE OF TRUST OF

Harley-Davidson
Motorcycle Trust 2009-4

 

This Certificate of Trust
of Harley-Davidson Motorcycle Trust 2009-4 (the “Trust”),
dated
                              ,
2009, is being duly executed and filed by Wilmington Trust Company, a Delaware
banking corporation, as Owner Trustee, to form a statutory trust under the
Delaware Statutory Trust Act (12 Del. Code, §
3801 et seq.).

 

1.             Name.  The name of the statutory trust formed hereby
is Harley-Davidson Motorcycle Trust 2009-4.

 

2.             Delaware Trustee.  The name and business address of the Owner
Trustee of the Trust in the State of Delaware is Wilmington Trust Company, 1100
North Market Street, Wilmington, Delaware l9890-1605.

 

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

 

	
   

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
  not in its
  individual capacity but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

EXHIBIT B

 

FORM OF TRUST
CERTIFICATE

 

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

 

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

 

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE
ACQUIRED OR HELD BY OR FOR THE ACCOUNT OF OR WITH THE ASSETS OF (A) AN
EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)), THAT IS SUBJECT
TO TITLE I OF ERISA, (B) A PLAN SUBJECT TO SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED OR (C) ANY ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF AN EMPLOYEE BENEFIT PLAN’S
OR A PLAN’S INVESTMENT IN THE ENTITY (A “BENEFIT PLAN”).

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2009-4 CERTIFICATE

 

	
  NO.

  	
   

  	
  Initial
  Certificate Balance
  $[                  ]

  

 

THIS CERTIFIES THAT
Harley-Davidson Customer Funding Corp. is the registered owner of  100% of the non-assessable, fully-paid,
fractional undivided beneficial interest in the Harley-Davidson Motorcycle
Trust 2009-4 (the “Trust”) formed
by Harley-Davidson Customer Funding Corp., a Nevada corporation (the  “Trust Depositor”).

 

The Trust was created
pursuant to a Trust Agreement, dated as of November 1, 2009 (as amended
and supplemented from time to time, the “Trust Agreement”),
between the Trust Depositor, and Wilmington Trust Company, as owner trustee
(the “Owner Trustee”), a summary of certain of
the pertinent provisions of which is set forth below.  To the extent not otherwise defined herein,
the capitalized terms used herein have the meanings assigned to them in (i) the
Trust Agreement, (ii) the Sale and Servicing Agreement, dated as of December 1,
2009 (the “Sale and Servicing Agreement”), among
the Trust, the Trust Depositor, Harley-Davidson Credit Corp. (“Harley-Davidson Credit”), as Servicer (in such capacity, the
“Servicer”) and The Bank of New York
Mellon Trust Company, N.A., as Indenture 

 

 

Trustee (the “Indenture
Trustee”) or (iii) the Indenture, dated as of December 1,
2009 (the “Indenture”), between the Trust and the
Indenture Trustee.

 

This Trust Certificate is
a duly authorized Trust Certificate designated as “Harley-Davidson
Motorcycle Trust 2009-4 Certificate”   (the “Trust Certificate”).  Issued under the Indenture are six classes of
notes designated as “[    ]% Motorcycle
Contract Backed Notes, Class A-1”, “[    ]% Motorcycle Contract Backed Notes, Class A-2”, “[    ]% Motorcycle
Contract Backed Notes, Class A-3”,
“[    ]% Motorcycle Contract Backed
Notes, Class A-4”, “[    ]% Motorcycle Contract Backed Notes, Class B” and “[    ]% Motorcycle Contract Backed Notes, Class C”  (collectively, the “Notes”).  This Trust Certificate is issued under and is
subject to the terms, provisions and conditions of the Trust Agreement, to
which Trust Agreement the Holder of this Trust Certificate by virtue of its
acceptance hereof assents and by which such Holder is bound.  The property of the Trust includes, among
other things, (i) all the right, title and interest of the Trust Depositor
in and to the Contracts listed on the List of Contracts delivered on the
Closing Date (including, without limitation, all security interests and all
rights to receive payments which are collected pursuant thereto after the Cutoff
Date, including any liquidation proceeds therefrom, but excluding any rights to
receive payments which were collected pursuant thereto on or prior to the
Cutoff Date), (ii) all rights of the Trust Depositor under any theft,
physical damage, credit life, disability or other individual insurance policy
(and rights under a “forced placed”
policy, if any), any debt insurance policy or any debt cancellation agreement
relating to any such Contract, an Obligor or a Motorcycle securing such
Contract, (iii) all security interests in each such Motorcycle, (iv) all
documents contained in the related Contract Files, (v) all rights (but not
the obligations) of the Trust Depositor under any related motorcycle dealer
agreements between dealers (i.e., the originators of such Contracts) and
Harley-Davidson Credit, (vi) all rights of the Trust Depositor in the
Lockbox, the Lockbox Account and related Lockbox Agreement to the extent they
relate to such Contracts, (vii) all rights (but not the obligations) of
the Trust Depositor under the Transfer and Sale Agreement, including but not
limited to the Trust Depositor’s rights under Article V thereof, (viii) the
remittances, deposits and payments made into the Trust Accounts from time to
time and amounts in the Trust Accounts from time to time (and any investments
of such amounts), (ix) all rights of the Trust Depositor to certain
rebates of premiums and other amounts relating to insurance policies, debt
cancellation agreements, extended service contracts or other repair agreements
and other items financed under such Contracts and (x) all proceeds and
products of the foregoing.

 

Under the Trust
Agreement, there will be distributed on each a Distribution Date to the person
in whose name this Trust Certificate is registered as of the last Business Day
immediately preceding the calendar month in which such Distribution Date occurs
(each, a “Record Date”), such Certificateholder’s
fractional undivided beneficial interest in the amount to be distributed to
such Certificateholder on such Distribution Date.

 

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

 

It is the intention of
Harley-Davidson Credit, the Servicer, the Trust Depositor, Owner Trustee,
Indenture Trustee and the Certificateholders that, in the event there is only
one Certificateholder, the Trust be disregarded as a separate entity pursuant
to Treasury Regulations Section 301.7701-3(b)(1)(ii) as in effect for
periods after January 1, 1997.  The
Trust Depositor and the Certificateholders agree not to 

 

 

take any action
inconsistent with such intended federal income tax treatment.  Because for federal income tax purposes the
Trust will be disregarded as a separate entity, Trust items of income, gain,
loss and deduction for any month as determined for federal income tax purposes
shall be allocated entirely to the Trust Depositor (or subsequent purchaser of
the Trust Certificate) as the sole Certificateholder.

 

Solely in the event the
Trust Certificates are held by more than a single Certificateholder, it is the
intent of the Trust Depositor, the Servicer and the Certificateholders that,
solely for purposes of federal income, state and local income and single
business tax and any other income taxes, the Trust will be treated as a
partnership and the Certificateholders will be treated as partners in the
partnership.  The purchaser hereof and
the other Certificateholders, by acceptance of a Trust Certificate, agree to
treat, and to take no action inconsistent with the treatment of, the Trust
Certificates for such tax purposes as partnership interests in the Issuer.

 

Each Certificateholder,
by its acceptance of a Trust Certificate or beneficial interest in a Trust
Certificate, covenants and agrees that such Certificateholder will not at any
time institute against the Trust or the Trust Depositor, or join in any
institution against the Trust or the Trust Depositor, Harley-Davidson Credit or
the Servicer any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating
to the Trust Certificate, the Notes, the Trust Agreement or any of the other
Transaction Documents.

 

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

 

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

 

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

 

THIS TRUST CERTIFICATE
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

 

 

[REVERSE OF
CERTIFICATE]

 

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

 

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

 

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

 

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

 

The obligations and
responsibilities created by the Trust Agreement and the Trust created thereby
shall terminate upon the payment to the Certificateholders of all amounts
required to be paid to it pursuant to the Trust Agreement and the Sale and
Servicing Agreement and the disposition of all property held as part of the
Trust Estate.  The Servicer may at its
option purchase the Trust Estate at a price specified in the Sale and Servicing
Agreement, and such purchase of the Contracts and other property of the Trust
will affect early retirement of the Trust Certificates; however, such right of
purchase is exercisable only as of 

 

 

any Distribution
Date on which the Pool Balance has declined to less than 10% of the Pool
Balance on the Cutoff Date.

 

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

 

 

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

 

	
  Dated:

  	
  Harley-Davidson
  Motorcycle Trust 2009-4

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
                   Authorized
  Signatory

  
					

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

WILMINGTON TRUST COMPANY,

not in its individual
capacity but solely

as Owner Trustee

 

 

	
  By:

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  

 

 

ASSIGNMENT

 

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

 

PLEASE INSERT SOCIAL
SECURITY OR

OTHER IDENTIFYING NUMBER
OF ASSIGNEE

 

 

 

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

 

 

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

 

 

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

 

	
  Dated:

  	
   

  	
   

  

 

Signature Guaranteed:

 

 

	
   

  	
   

  	
   

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

  	
   

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

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