Document:

Exhibit 10.1 

TRANSITION AGREEMENT 

        AGREEMENT
dated the 6th day of March, 2006 between Harley-Davidson, Inc., a Wisconsin corporation
(the “Corporation”), and Thomas E. Bergmann (the “Executive”). Unless
otherwise indicated, terms used herein and defined in Schedule A shall have the meanings
assigned to them in Schedule A. 

        WHEREAS,
the HDI Group desires to continue to attract and retain skilled and dedicated management
employees, consistent with achieving the best possible price for its stockholders in any
transition period or change in ownership and control of the Corporation; 

        WHEREAS,
the Executive has specific duties and unique talents which are of benefit to the HDI Group
both presently and in any transition period; 

        WHEREAS,
the HDI Group and the Executive desire that the Executive be free of any conflict of
interest with regard to the performance of the Executive’s duties in evaluating any
proposed change in ownership or control; 

        NOW,
THEREFORE, it is agreed as follows  

        1.    
The HDI Group currently employs the Executive as Vice President and Chief Financial
Officer, Harley-Davidson, Inc. upon the terms and conditions currently reflected in the
Executive’s personnel file or in various minutes of the Board.  

        2.              This
Agreement shall become effective on the date hereof and shall terminate on           the
second anniversary of the occurrence of a Change of Control Event; PROVIDED,
          HOWEVER, that no benefits shall be payable or accrue pursuant to this Agreement
          prior to the occurrence of a Change of Control Event.  

        3.              During
the two year period following a Change of Control Event, so long as the
          Executive remains employed by the HDI Group he shall devote his full time,
          attention, and energies to the business of the HDI Group and shall not engage
in           any other business activity whether or not such business activity is pursued
for           gain, profit, or other pecuniary advantage; but this shall not be construed
as           preventing the Executive from (a) investing the Executive’s assets in
such           form or manner as will not materially affect the Executive’s ability
to           perform his duties and obligations to the HDI Group; or (b) continuing to
serve           as a director of any corporation of which he was a director immediately
prior to           the Change of Control Event. The Executive agrees that once a Change
of Control           Event occurs he will not voluntarily terminate his employment with
the HDI Group           until ten days after such Change of Control Event has occurred.  

        4.              The
HDI Group agrees that following a Change of Control Event no termination of           the
Executive’s employment with the HDI Group will be effective, unless it
          provides the Executive ten days prior written notice of such termination;
          PROVIDED, HOWEVER, that any Termination by the Executive shall provide the HDI
          Group Employer with ten days prior written notice. The Executive may waive the
          notice requirement for the HDI Group.  

        5.              The
Executive recognizes and acknowledges that the list of the HDI Group’s
          customers, its product plans, forecasts and financial information, as well as
          other confidential information, as it may exist from time to time, is valuable,
          special, and unique asset of the HDI Group’s business. The Executive will
          not, during or after the term of the Executive’s employment, disclose any
          such information or any part thereof to any person, firm, corporation,
          association, or other entity for any reason or purpose whatsoever. In the event
          of a breach or threatened breach by the Executive of the provisions of this
          section, the HDI Group shall be entitled to an injunction restraining the
          Executive from disclosing, in whole or in part, this information. The HDI Group
          will be free to pursue any other remedies as may in its discretion be deemed
          appropriate under the circumstances.  

        6.              Upon
the happening of a Change of Control Event, the HDI Group agrees, while the
          Executive is employed hereunder, to continue the Compensation of the Executive
          at a level, comparable in the aggregate, to that immediately preceding the
          Change of Control Event.  

        7.              (a)
(i) The Executive shall be entitled to receive upon Termination a lump-sum
          payment equal to the product of three multiplied by the sum of:  

	 	
(A)
           the Executive’s highest annual rate of salary during the five year period
          preceding the Executive’s termination of employment with the HDI Group;  

	 	
(B)
           the highest annual bonus paid to or accrued for the benefit of the Executive
          during the five year period preceding the Executive’s termination of
          employment with the HDI Group under any bonus plan, program, or arrangement of
          the HDI Group which the HDI Group Employer maintains or has adopted; and  

	 	
(C)
            the product of four times the last quarterly payment, prior to the Change of
          Control Event, paid to the Executive by the HDI Group, to the extent such
          payment was paid by the HDI Group in lieu of providing the Executive with
          various fringe benefits (the “Perquisite Payment”).  

In addition, if Executive has
attained age 55 prior to the date of Termination, the Executive shall receive an
additional amount, in lieu of any post-retirement life insurance, equal to his annual base
salary, at its then current rate. 

	 	        (ii)                   In
addition, the HDI Group shall, at the time the 10 day written notice prior to
               Termination is given, cause:  

	 	
(A)              the
Executive to be fully and immediately vested in his accrued benefit and any
               minimum years of service requirement will be deemed to have been satisfied
               under: the Harley-Davidson Retirement Savings Plan for Salaried Employees,
the                Retirement Annuity Plan for Salaried Employees of Harley-Davidson, the
               Harley-Davidson Pension Benefit Restoration Plan, the Harley-Davidson
               Supplemental Executive Retirement Plan, and any other pension or
retirement plan                in which Executive was entitled to participate at the time
of the Change of                Control Event or at any time prior to Termination;  

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(B)               all
restricted stock awards made to the Executive to be fully and immediately
               vested;  

	 	
(C)
             all stock options granted pursuant to the Harley-Davidson, Inc. 2004
Incentive                Stock Plan, as amended, and any successor or predecessor plan,
to be fully                vested and become immediately exercisable;  

	 	
(D)               all
performance or other awards granted to the Executive pursuant to any HDI
               long-term incentive plan to be fully and immediately vested, as if all
               performance requirements have been satisfied; and  

	 	
(E)              the
HDI Group Employer to pay to Executive an amount in respect of any bonus
               under a short-term incentive or other annual bonus plan of the HDI Group
equal                to the higher of (a) Executive’s target bonus for the year of
Termination,                or (b) the bonus Executive received in the year prior to the
Change of Control                Event, which amount shall be pro-rated by a fraction,
the numerator of which is                the number of days elapsed in the HDI Group’s
fiscal year on the date of                Termination and the denominator of which is
365.  

	 	        (iii)                   The
Executive will also receive, for a period of three years from the date of
               Termination:  

	 	
(A)              use
of professional outplacement services by qualified consultants retained at
               the expense of the HDI Group Employer; and  

	 	
(B)            continued
coverage under HDI Group hospital, medical, life, disability insurance                and
other welfare benefit plans.  

	 	        (iv)                 Furthermore,
unless the Perquisite Payment was substituted for the following,                the
Executive shall also receive a cash lump sum payment, calculated so as to
               equal the fair market value of three years of benefits, for:  

	 	
(A)             automobiles
and vehicles (or allowance in respect thereof) to which he was                entitled
either prior to the Change of Control Event or prior to Termination;                and  

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(B)             all
amounts in respect of club, association or similar fees and dues covering
               such Executive to which he was entitled either prior to the Change of
Control                Event or prior to Termination.  

	 	        (v)                   The
Executive shall also be entitled to all amounts earned or accrued through
               the date of Termination but not paid as of such date, including base
salary,                reimbursement for reasonable and necessary expenses incurred by
the Executive on                behalf of the HDI Group during the period ending on the
date of Termination,                vacation pay, and sick leave (collectively, “Accrued
Compensation”).  

	 	        (vi)                   All
amounts payable pursuant to this Section 7(a) of this Agreement shall be
               paid to the Executive within 10 days following the date of Termination and
all                other benefits provided pursuant this Section 7(a) shall be provided
or begun,                as the case may be, on the date of Termination.  

	 	
(b)
                                    In the
event the Executive’s employment shall be terminated due to death
                    within the two year period following a Change of Control Event, for a
period of                     one year following such termination (i) the HDI Group shall
be obligated to make                     payments under then existing employee benefit
programs, including, but not                     limited to, hospital, medical, life and
disability insurance; and (ii) except as                     provided in (i) above, all
payments under this Agreement shall cease, other than                     those payments
which accrued, but were not yet paid, on the date of an event
                    described in this Section 7(b). In addition, Executive shall also be
entitled to                     all Accrued Compensation within 10 days of his date of
termination.  

	 	
(c)
                                            Nothing
in this Agreement shall be construed to prevent the HDI Group Employer
                    or the Board from terminating the Executive’s employment under
this                     Agreement for Cause. Such termination shall relieve the HDI
Group of its                     obligation to make any other payments under this
Agreement, except those that                     may be payable under then existing
employee benefit programs. In order for the                     Executive to be
terminated for Cause, the existence of Cause must be determined                     by a
written resolution adopted by the affirmative vote of not less than
                    two-thirds of all the Continuing Directors, excluding for this
purpose the                     Executive, or in the event there are no Continuing
Directors, by a unanimous                     vote of all the Directors, at a meeting
duly called and held for that purpose                     after reasonable notice to the
Executive and opportunity for the Executive and                     his counsel to be
heard. Any such determination shall require that the                     Continuing
Directors (or the entire Board) find that in their reasonable good
                    faith judgment the conduct which was the basis for the hearing in
fact occurred                     and is sufficient to warrant a termination for Cause.  

        8.              (a)
If the Executive receives any payments under this Agreement from the HDI           Group
which are “excess parachute payments” taxed under Section 4999           of the
Code, the HDI Group Employer will pay, pursuant to subsection (b) below,           an
amount sufficient to offset such tax effects.  

	 	
(b)
                                        (i) In
the event that the Executive becomes entitled to payments in connection
                    with a Change of Control Event under this Agreement or otherwise (“the
                    Payments”), if any of the Payments will be subject to the tax
imposed by                     Section 4999 of the Code (the “Excise Tax”) (or
any similar tax that                     may hereafter be imposed), the HDI Group
Employer shall pay to the Executive an                     additional amount (the “Gross-Up
Payment”) such that the net amount                     retained by the Executive,
after deduction of any Excise Tax on the Payments and                     any federal and
state income or other taxes and Excise Tax upon Gross-Up                     Payments
provided for by this section, shall be equal to the Payment.  

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(ii)
                                     For purposes of determining whether any of the
Payments will be subject to the                     Excise Tax and the amount of such
Excise Tax, (A) any other payments or benefits                     received or to be
received by the Executive in connection with a Change of                     Control
Event shall be treated as “parachute payments” within the
                    meaning of Section 280G(b)(2) of the Code, and all “excess
parachute                     payments” within the meaning of Section 280G(b)(1)
shall be treated as                     subject to the Excise Tax, unless in the opinion
of tax counsel selected by the                     HDI Group’s independent auditors,
and acceptable to the Executive, such                     other payments or benefits (in
whole or in part) do not constitute parachute                     payments, or such “excess
parachute payments” (in whole or in part)                     represent reasonable
compensation for services actually rendered within the                     meaning of
Section 280G(b)(4) of the Code in excess of the base amount within
                    the meaning of Section 280G(b)(3) of the Code, or are otherwise not
subject to                     the Excise Tax, (B) the amount of the Payments which shall
be treated as subject                     to the Excise Tax shall be equal to the lesser
of (1) the total amount of the                     Payments or (2) the amount of excess
parachute payments within the meaning of                     Section 280G(b)(1) of the
Code (after applying clause (A), above), and (C) the                     value of any
non-cash benefits or any deferred payment or benefit shall be
                    determined by the HDI Group’s independent auditors in accordance
with the                     principles of Section 280G(b)(3) and (4) of the Code.  

	 	
(iii)
                             For
purposes of determining the amount of the Gross-Up Payment, the Executive
                    shall be deemed to pay federal and state income taxes at the highest
marginal                     rate of federal and state income taxation in the calendar
year in which the                     Gross-Up Payment is to be made.  

	 	
(iv)
                                  A Gross-Up Payment and Tax Adjustment Amount, if any,
under subsection (v)                     shall be paid not later than the fifth day
following the Executive’s date                     of Termination; PROVIDED,
HOWEVER, that if the amounts of such payment cannot be                     finally
determined on or before such day, the HDI Group Employer shall pay to
                    the Executive on such day an estimate, as determined in good faith by
the HDI                     Group Employer of the minimum amount of such payments and
shall pay the                     remainder of such payment (together with interest at
the rate provided under                     Section 1274(b)(2)(B) of the Code) as soon as
the amount can be determined but                     no later than the thirtieth day
after the Executive’s date of Termination.                     Notwithstanding the
foregoing, a Gross-Up Payment and a Tax Adjustment Amount,                     if any,
shall be paid prior to Termination, if necessary, and the event
                    prompting such payment shall be substituted for “Termination” in
this                     subsection (iv) for purposes of determining the date by which
payments must be                     made.  

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(v)
                                      In
addition to the Gross-Up Payments under this Section 8, the HDI Group
                    Employer shall pay to the Executive an additional amount (the “Tax
                    Adjustment Amount”) in the event any portion of the Payments are
taxed (for                     state or federal income tax purposes) at income tax rates
higher than the                     highest marginal federal and state income tax rates
otherwise applicable to the                     Executive without considering the
Payments (“Base Income Tax Rates”),                     such that the net
amount retained by the Executive, after deduction of state and
                    federal income taxes at their respective actual rates and any state
and federal                     income taxes upon the Tax Adjustment Amount provided by
this subsection (v),                     shall be equal to the Payments less state and
federal income taxes thereon                     calculated at the Base Income Tax Rates.
In the event any payments are required                     under this subsection (v),
they shall be included as “Payments” under                     subsections (a)
and (b) of this Section 8.  

	 	
(vi)
                                      The
Executive shall notify the HDI Group in writing of any claim by the
                    Internal Revenue Service that, if successful, would require the
payment by the                     HDI Group of a Gross-Up Payment. Such notification
shall be given as soon as                     practicable, but no later than 10 business
days after the Executive is informed                     in writing of such claim and
shall apprise the HDI Group of the nature of such                     claim and the date
on which such claim is requested to be paid. The Executive                     shall not
pay such claim prior to the expiration of the 30 day period following
                    the date on which the Executive gives such notice to the HDI Group
(or such                     shorter period ending on the date that any payment of taxes
with respect to such                     claim is due). If the HDI Group notifies the
Executive in writing prior to the                     expiration of such period that it
desires to contest such claim, the Executive                     shall:  

	 	
(A)
                     give the HDI Group any
information reasonably requested by the HDI Group           relating to such claim;  

	 	
(B)
               take such action in connection with contesting such claim as the HDI Group
          shall reasonably request in writing from time to time, including, without
          limitation, accepting legal representation with respect to such claim by an
          attorney reasonably selected by the HDI Group and reasonably satisfactory to
the           Executive;  

	 	
(C)
                 cooperate with the HDI Group in good faith in order to effectively
contest such           claim; and  

	 	
(D)
                   permit the HDI Group to participate in any proceedings related to such
claim;  

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PROVIDED,
HOWEVER, that the HDI Group shall bear and pay directly all costs and expenses (including,
but not limited to, additional interest and penalties and related legal, consulting or
other similar fees) incurred in connection with such contest and shall indemnify and hold
the Executive harmless, on an after-tax basis, for any Excise Tax or other tax (including
interest and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses. 

	 	
(vii)
                                 The HDI
Group shall control all proceedings taken in connection with such
                    contest and, at its sole option, may pursue or forego any and all
administrative                     appeals, proceedings, hearings and conferences with
the taxing authority in                     respect of such claim and may, at its sole
option, either direct the Executive                     to pay the tax claimed and sue
for a refund or contest the claim in any                     permissible manner, and the
Executive agrees to prosecute such contest to a                     determination before
any administrative tribunal, in a court of initial                     jurisdiction and
in one or more appellate courts, as the HDI Group shall                     determine;
PROVIDED, HOWEVER, that if the HDI Group directs the Executive to pay
                    such claim and sue for a refund, the HDI Group shall advance the
amount of such                     payment to the Executive on an interest-free basis,
and shall indemnify and hold                     the Executive harmless, on an after-tax
basis, from any Excise Tax or other tax                     (including interest and
penalties with respect thereto) imposed with respect to                     such advance
or with respect to any imputed income with respect to such advance;
                    and PROVIDED, FURTHER, that if the Executive is required to extend
the statute                     of limitation to enable the HDI Group to contest such
claim, the Executive may                     limit this extension solely to such
contested amount. The HDI Group’s                     control of the contest shall
be limited to issues with respect to which a                     Gross-Up Payment would
be payable hereunder and the Executive shall be entitled                     to settle or
contest, as the case may be, any other issue raised by the Internal
                    Revenue Service or any other taxing authority. In addition, no
position may be                     taken nor any final resolution be agreed to by the
HDI Group without the                     Executive’s consent if such position or
resolution could reasonably be                     expected to adversely affect the
Executive (including any other tax position of                     the Executive
unrelated to the matters covered hereby).  

	 	
(viii)
                                   As a
result of the uncertainty in the application of Section 4999 of the Code,
                    it is possible that Gross-Up Payments and Tax Adjustment Amounts
which will not                     have been made by the HDI Group should have been made
                    (“Underpayment”), consistent with the calculation required
to be made                     hereunder. In the event that the HDI Group exhausts its
remedies and the                     Executive thereafter is required to pay to the
Internal Revenue Service an                     additional amount in respect of any
Excise Tax, the HDI Group shall determine                     the amount of the
Underpayment (including any Tax Adjustment Amount) that has                     occurred
and any such Underpayment shall promptly be paid by the HDI Group to or
                    for the benefit of the Executive.  

7 

	 	
(ix)
                                      If,
after the receipt by the Executive of an amount advanced by the HDI Group
                    in connection with the contest of the Excise Tax claim, the Executive
becomes                     entitled to receive any refund with respect to such claim,
the Executive shall                     promptly pay to the HDI Group the amount of such
refund (together with any                     interest paid or credited thereon after
taxes applicable thereto). If, after the                     receipt by the Executive of
an amount advanced by the HDI Group in connection                     with an Excise Tax
claim, a determination is made that the Executive shall not                     be
entitled to any refund with respect to such claim and the HDI Group does not
                    notify the Executive in writing of its intent to contest the denial
of such                     refund prior to the expiration of 30 days after such
determination, such advance                     shall be forgiven and shall not be
required to be repaid and the amount of such                     advance shall be offset,
to the extent thereof, by the amount of the Gross-Up                     Payment and the
Tax Adjustment Amount.  

        9.              The
Executive agrees that during the term of his employment under this           Agreement,
he shall not, directly or indirectly, engage or participate in any           business
activity that is directly competitive with and likely to have a           material
adverse effect on the business of the HDI Group without prior written           approval
of the Board. In the event that, while employed by the HDI Group, the           Executive
engages in practices that are directly competitive and that are likely           to have
a material adverse effect on the HDI Group and the Executive fails to           cease
such competitive practices within 30 days after written notice is received           from
the Board, Executive shall be treated for purposes of this Agreement as
          terminated for Cause as of such 30th day.  

        10.              Any
dispute or controversy arising under or in connection with this Agreement           shall
be settled exclusively by arbitration in Milwaukee, Wisconsin or, at the           option
of the Executive, in the county where the Executive resides, in           accordance with
the Rules of the American Arbitration Association then in           effect; PROVIDED,
HOWEVER, that if the Executive institutes an action relating           to this Agreement
the Executive may, at his option, bring such action in a court           of competent
jurisdiction. Judgment may be entered on the arbitrator’s           award in any
court having jurisdiction.  

        11.              The
HDI Group shall pay all costs and expenses, including attorneys’ fees           and
disbursements, of the HDI Group and, at least monthly, the Executive, in
          connection with any legal services or proceedings (including, but not limited
          to, arbitration), whether or not instituted by the HDI Group or the Executive,
          relating to the interpretation or enforcement of any provision of this
          Agreement. The HDI Group also agrees to pay prejudgment interest on any money
          judgment obtained by the Executive as a result of such proceedings, calculated
          at the reference rate or prime rate, as the case may be, of First Wisconsin
          National Bank of Milwaukee as in effect from time to time from the date that
          payment should have been made to the Executive under this Agreement.  

        12.              This
Agreement shall be binding upon, inure to the benefit of and be enforceable           by
the HDI Group and the Executive and their respective heirs, legal
          representatives, successors and assigns. If the HDI Group or any member of the
          HDI Group shall be merged into or consolidated with another entity, the
          provisions of this Agreement shall be binding upon and inure to the benefit of
          the entity surviving such merger or resulting from such consolidation. The HDI
          Group will require any successor (whether direct or indirect, by purchase,
          merger, consolidation or otherwise) to all or substantially all of the business
          or assets of the HDI Group or any member of the HDI Group, by agreement in form
          and substance satisfactory to the Executive, to expressly assume and agree to
          perform this Agreement in the same manner and to the same extent that the HDI
          Group would be required to perform it if no such succession had taken place.
The           provisions of this Section 12 shall continue to apply to each subsequent
          employer of the Executive hereunder in the event of any subsequent merger,
          consolidation or transfer of assets of such subsequent employer.  

8 

        13.              The
HDI Group Employer will indemnify the Executive against expenses (including
          attorney’s fees), amounts paid in settlement (whether with or without
court           approval), judgments and fines actually and reasonably incurred by him in
          connection with a threatened or actual action, suit or proceeding if he acted
in           good faith and in a manner he reasonably believed to be in, or not opposed
to,           the best interests of the HDI Group, and with respect to any criminal
action or           proceeding, if he had no reasonable cause to believe that his conduct
was           unlawful, (and the HDI Group Employer will advance expenses for the
Executive)           if he becomes a party or is threatened, pending or completed action,
suit or           proceeding, whether civil, criminal, administrative or investigation
(if not by           or in the right of the HDI Group Employer) by reason of the fact
that he is or           was a director, officer, employee or agent of the HDI Group or is
or was serving           at the request of the HDI Group as a director, officer, employee
or agent or in           any other capacity or in another corporation, or a partnership,
joint venture,           trust or other enterprise, or by reason of any action alleged to
have been taken           or not taken by him while acting in any such capacity, to the
fullest extent           permitted by the HDI Group Employer’s Articles of
Incorporation and           By-Laws.  

        14.              Any
provision of this Agreement which is held to be unenforceable or invalid in           any
respect in any jurisdiction shall be ineffective in such jurisdiction to the
          extent that it in unenforceable or invalid without affecting the remaining
          provisions hereof, which shall continue in full force and effect. The
          unenforceability or invalidity of a provision of this Agreement in one
          jurisdiction shall not invalidate or render unenforceable such provision in any
          other jurisdiction.  

        15.              This
Agreement shall be governed by and construed in accordance with the laws of           the
State of Wisconsin applicable to contracts made and to be performed therein,
          without regard to conflict of law principles.  

        16.              This
instrument contains the entire agreement of the parties, and supersedes any
          earlier agreement between them, relative to a transition period or termination
          in the event of a Change of Control Event. It may not be changed orally but
only           by an agreement in writing signed by the party against whom enforcement of
any           waiver, change, modification, extension, or discharge is sought.
Notwithstanding           anything in this Agreement to the contrary, the Corporation may
unilaterally           amend this Agreement to make changes that the Corporation
reasonably determines           are necessary or appropriate for purposes of causing this
Agreement to comply           with the requirements of Section 409A of the Internal
Revenue Code and           regulations proposed or promulgated thereunder, so long as the
Corporation makes           the same changes to corresponding agreements to which other
Corporation           executives are parties.  

9 

        17.              The
Executive shall not be required to mitigate damages or the amount of any
          payment to the Executive provided for under this Agreement by seeking other
          employment or otherwise, nor shall the amount of any payment provided for under
          this Agreement be reduced by any compensation earned by Executive as a result
of           employment by another employer after Termination.  

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written. 

		HARLEY-DAVIDSON, INC.
	

 	By:  /s/ James L. Ziemer
		        James L. Ziemer
		        President and Chief Executive Officer
	
 	ATTEST:
	

 	/s/ Gail A. Lione
		Gail A. Lione
		Vice President, General Counsel and Secretary
	
 	EXECUTIVE:
	
 	/s/ Thomas E. Bergmann
		Thomas E. Bergmann

10 

Schedule A 

CERTAIN DEFINITIONS  

        As
used in this Agreement, and unless the context requires a different meaning, the following
terms have the meanings indicated: 

“BASE INCOME TAX RATES”
shall have the meaning ascribed to it in Section 8(b)(v) of the Agreement. 

“BOARD” means the
Corporation’s board of directors. 

“CAUSE” means the commission
by the Executive of one or more acts for which the Executive is convicted of a felony
under United States federal, state or local criminal law, or willful and gross misconduct
on the part of the Executive that is materially and demonstrably detrimental to the HDI
Group taken as a whole. 

“CHANGE OF CONTROL EVENT”
means any one of the following: (a) Continuing Directors no longer constitute at least 2/3
of the Directors; (b) any person or group of persons (as defined in Rule 13d-5 under the
Securities Exchange Act of 1934), together with its affiliates, become the beneficial
owner, directly or indirectly, of 20% or more of the Corporation’s then outstanding
Common Stock or 20% of more of the voting power of the Corporation’s then outstanding
securities entitled generally to vote for the election of the Corporation’s
Directors; (c) the approval by the Corporation’s stockholders of the merger or
consolidation of the Corporation with any other corporation, the sale of substantially all
of the assets of the Corporation or the liquidation or dissolution, of the Corporation,
unless, in the case of a merger or consolidation, the then Continuing Directors in office
immediately prior to such merger or consolidation will constitute at least 2/3 of the
Directors of the surviving corporation of such merger or consolidation and any parent (as
such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934) of such
corporation; or (d) at least 2/3 of the then Continuing Directors in office immediately
prior to any other action proposed to be taken by the Corporation’s stockholders or
by the Board determines that such proposed action, if taken, would constitute a change of
control of the Corporation and such action is taken. 

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

“COMPENSATION” means the
sum of all remuneration to which the Executive is entitled, including, but not limited to
salary, participation in HDI Group bonus and benefit plans, programs or arrangements and
awards under any HDI Group bonus plans, long-term incentive compensation plans, stock
option plans, restricted stock plans or any other deferred compensation plans in which the
HDI Group Employer maintained or adopted prior to the Change of Control Event or the value
to the Executive of the use of professional outplacement services by qualified consultants
and use of automobiles or vehicles, (or allowances in respect thereof), and all amounts in
respect of club, association or similar fees and dues covering such Executive. In the
event that the HDI Group cannot provide the Executive with one or more benefits which it
is obligated to provide to the Executive, pursuant to this Agreement, under its employee
benefit plans, programs or arrangements then the HDI Group shall provide the Executive
with equivalent benefits at the expense of the HDI Group Employer. 

11 

“CONTINUING DIRECTOR” means
any individual who is either (i) a member of the Board on the date hereof or (ii) a member
of the Board whose election or nomination to the Board was approved by a vote of at least
two-thirds of the Continuing Directors (other than a person whose election was as a result
of an actual or threatened proxy or other control contest). 

“CORPORATION” means
Harley-Davidson, Inc., a Wisconsin corporation. 

“EXCISE TAX” has the
meaning ascribed to it in Section 8(b)(i) of the Agreement. 

“GROSS-UP PAYMENT” has the
meaning ascribed to it in Section 8(b)(i) of the Agreement. 

“HDI GROUP” means
Harley-Davidson, Inc. and its affiliates. 

“HDI GROUP EMPLOYER” means
the member of the HDI Group that employed the Executive immediately prior to the Change of
Control Event. 

“TAX ADJUSTMENT AMOUNT” has
the meaning ascribed to it in Section 8(b)(v) of the Agreement. 

“TERMINATION” means any
termination of Executive’s employment following the occurrence of any Change of
Control Event, and shall include any voluntary termination by the Executive, any
termination in connection with retirement under any retirement plan of the HDI Group, or
any termination resulting from a disability; PROVIDED, HOWEVER, that such term shall not
include any termination of the Executive’s employment by the Corporation for Cause or
as a result of the death of the Executive. 

“UNDERPAYMENT” has the
meaning ascribed to it in Section 8(b)(viii) of the Agreement. 

12Exhibit 10.2 

HARLEY-DAVIDSON,
INC.
SEVERANCE BENEFITS AGREEMENT  

        THIS
AGREEMENT,  entered into as of the 6th day of March,  2006, by and between
 HARLEY-DAVIDSON, INC., a Wisconsin corporation ("Employer"), and THOMAS E. BERGMANN
("Executive"). 

        WHEREAS,
 Employer  desires to continue to attract and retain  skilled and  dedicated  management
employees; 

        WHEREAS,
Executive is currently employed by Employer in an executive capacity and has unique skills
and abilities that are of benefit to Employer; and 

        WHEREAS,
Employer desires to provide Executive certain assurances regarding severance pay and other
benefits in the event of a Covered Termination (as defined below). 

        NOW,
THEREFORE, in consideration of the premises and other good and valuable consideration, the
parties hereby agree as follows: 

        1.    Not
an Employment Agreement. This Agreement is not an employment           agreement and
shall not change the employment relationship between Employer and           Executive.
Except as expressly provided herein, this Agreement shall not amend           or alter
the terms of, or limit the benefits to Executive under, any existing or           future
employment, transition, change of control or other agreement between           Executive
and Employer. This Agreement shall not be amended by any such future           agreement
unless such future agreement specifically provides that the terms of           this
Agreement shall be amended. Anything in this Agreement to the contrary
          notwithstanding and subject to any existing or future employment or other
          agreement between Employer and Executive, (a) Executive may terminate
          Executive’s employment with Employer at any time and for any reason and
(b)           Employer may terminate Executive’s employment with Employer at any
time and           for any reason.  

        2.     Definitions.  

	 	
a.    Affiliate.
“Affiliate” shall mean any parent, subsidiary or           other affiliate of
Employer.  

	 	
b.    Base
Salary Amount. “Base Salary Amount” shall mean the           Executive’s
average annual base salary immediately prior to the Termination           Date.  

	 	
c.    Benefit
Period. “Benefit Period” shall mean the twelve (12)           consecutive
months immediately following the Termination Date.  

	 	
d.    Cause.
“Cause” shall mean:  

	 	        (1)              the
conviction of Executive of a felony or a crime involving moral turpitude,           theft
or fraud; or  

	 	        (2)              Executive’s
refusal to perform duties as directed in good faith by           Executive’s
supervisor, which failure is not cured within 10 days after           written notice
thereof from Employer to Executive; or  

	 	        (3)              Executive’s
engaging in sexual harassment or any act involving theft or           fraud with respect
to Employer or any of its parents, subsidiaries or other           affiliates, as
determined by the Chief Executive Officer of Employer; or  

	 	        (4)              Executive’s
reckless conduct or willful misconduct which results in           substantial harm (in
relation to Executive’s annual compensation), as           determined by the Chief
Executive Officer of Employer, whether financial,           reputational or otherwise, to
Employer or any of its parents, subsidiaries or           other affiliates.  

	 	
e.    Covered
Termination. “Covered Termination” shall mean           Employer’s
termination of Executive’s employment with Employer other           than (1) for
Cause or (2) in connection with the death or disability of           Executive.
Notwithstanding the foregoing, the transfer of Executive’s           employment to
any Affiliate shall not be a Covered Termination.  

	 	
f.    Disability.
“Disability” shall have the meaning assigned to it           in the long-term
disability insurance policy then provided or made available to           Executive by or
through Employer. If there is then no such policy or such term           is not defined
therein, then “Disability” shall mean Executive’s           incapacity due
to physical or mental illness causing Executive to be absent from           the full-time
performance of Executive’s duties with Employer for sixty           (60) consecutive
days.  

	 	
g.    Stock
Plans. “Stock Plans” shall mean the Employer’s 2004
          Incentive Stock Plan, as amended, and any other existing or future plans for
the           issuance of stock options, stock appreciation rights or restricted stock.  

	 	
h.    Termination
Date. “Termination Date” shall mean the date on           which a Covered
Termination is effective, which date shall not be less than           twenty-five (25)
days after the date the Termination Notice is delivered to           Executive.  

	 	
i.    Termination
Notice Date. “Termination Notice Date” shall mean           the date on
which written notice is delivered by Employer to Executive stating           that the
Executive’s employment is being terminated pursuant to a Covered
          Termination and setting forth the Termination Date.  

        3.    Severance
Benefits. In the event of a Covered Termination and in lieu of           any benefits
or other amounts that would otherwise be payable by Employer to           Executive as a
result of, arising out of or following such Covered Termination,           Executive
shall be entitled to all of the following:  

-2- 

	 	
a.              a
lump sum payment, payable within thirty (30) days following the Termination
          Date, equal to the Base Salary Amount.  

	 	
b.              during
the Benefit Period or the period beginning on the Termination Date and           ending
on the date Executive becomes employed on a substantially full-time           basis,
whichever is shorter, Employer shall make available to Executive coverage           under
Employer’s medical, dental and life insurance plans (but not short or           long
term disability) on the same terms as such plans are made available to           Employer’s
salaried employees generally.  

	 	
c.              during
the Benefit Period or the period beginning on the Termination Date and           ending
on the date Executive becomes employed on a substantially full-time           basis,
whichever is shorter, Employer shall maintain any life insurance on           Executive’s
life owned by Employer and shall pay the premiums (for such           period) due on any
life insurance on Executive’s life owned by Executive.  

	 	
d.              any
other benefits payable pursuant to the terms of the Stock Plans (and           applicable
agreements thereunder) and any incentive compensation (including           STIP),
pension, 401(k), retirement, savings or deferred compensation plans           earned up
to Termination Date.  

	 	
e.              reimbursement
of any expenses incurred by Executive in the ordinary course of           employment
prior to the Termination Date consistent with Employer’s then           existing
expense reimbursement policy.  

        4.    No
Mitigation. Executive shall not be required to mitigate the amount of           any
payment or benefit provided for in Section 3 hereof by seeking other           employment
or otherwise, nor will the amount provided for in Section 3(a) hereof           be
reduced by any compensation earned by Executive as a result of employment by
          another employer after the Termination Date.  

        5.    Exclusivity.  

	 	        a.              The
benefits provided for herein are intended to constitute a minimum, but
          noncumulative, benefit package for Executive in the event of a Covered
          Termination. If Executive has or claims to have any Claims (as defined below),
          Executive may elect to assert such Claims. If, however, Executive does formally
          assert one or more Claims in a writing submitted to Employer, or an appropriate
          body to determine such Claims, for the legal enforcement of such Claims, such
          writing shall constitute an irrevocable waiver and disclaimer of
          Executive’s benefits and rights under this Agreement.  

	 	        b.              As
a condition of receiving the benefits provided for herein, Executive shall be
          required to execute, prior to receiving any benefits hereunder, a release in a
          form reasonably satisfactory to Employer, of all other claims against Employer
          arising out of such Covered Termination (the “Claims”), including but
          not limited to any and all claims arising out of contract (written, oral, or
          implied in law or in fact), tort (including negligent and intentional acts), or
          state, federal or local law (including discrimination on any basis whatsoever);
          a reaffirmation of the Executive’s confidentiality agreement; a
          non-solicitation of other employees; and a non-compete agreement effective
          during the Benefit Period.  

-3- 

	 	        c.              If
Executive has received benefits under this Agreement for a Covered           Termination
and thereafter asserts any Claims, Executive shall, notwithstanding           any other
agreement to the contrary, return to Employer all benefits received           hereunder
as a condition of being allowed to assert any such Claims. If for any           reason
Executive cannot legally be compelled to return such benefits, Employer           shall
be given, to the extent allowed by law, credit for all amounts received by
          Executive under this Agreement against any other amounts otherwise due to
          Executive arising out of any such Claims. Notwithstanding the foregoing, this
          Section 5(c) shall not be construed to limit or otherwise modify the terms of
          any release executed by Executive pursuant to Section 5(b) hereof or otherwise.  

        6.    Other
Termination. In the event Executive’s employment with Employer
          terminates other than pursuant to a Covered Termination, including without
          limitation, a termination for Cause, termination by reason of Executive’s
          death, Disability or retirement or a voluntary termination by Executive,
          Executive shall be entitled to no benefits or rights under this Agreement.  

        7.    Amendment,
Termination and Assignment. This Agreement may be amended,           terminated or
superseded only by a written instrument signed by Executive and           Employer. This
Agreement may not be assigned by Executive. Notwithstanding           anything in this
Agreement to the contrary, Employer may unilaterally amend this           Agreement to
make changes that Employer reasonably determines are necessary or           appropriate
for purposes of causing this Agreement to comply with the           requirements of
Section 409A of the Internal Revenue Code and regulations           proposed or
promulgated thereunder, so long as Employer makes the same changes           to
corresponding agreements to which other Employer executives are parties.  

        8.    Transfer
of Employment. If Executive’s employment is transferred to           any
Affiliate, such Affiliate shall assume Employer’s obligations hereunder
          and following such transfer such Affiliate shall be deemed the           “Employer” for
purposes of this Agreement.  

        9.    Headings.
Headings used herein are for convenience only and shall not           constitute a part
of or affect the meaning or interpretation of this Agreement.  

        10.    Governing
Law; Venue. This Agreement shall be deemed to have been made           and executed
in the State of Wisconsin and the validity, interpretation and           enforcement
hereof shall be governed by the internal laws of the State of           Wisconsin. In the
event of any dispute arising from or in connection with this           Agreement,
Executive consents and agrees to in personam          jurisdiction
and to venue exclusively in either the Circuit Court for Milwaukee           County,
Wisconsin, or the United States District Court for the Eastern District           of
Wisconsin, located in Milwaukee, Wisconsin.  

-4- 

        IN
WITNESS WHEREOF, the parties have executed this Agreement at Milwaukee, Wisconsin as of
the date first above written. 

	EXECUTIVE:	EMPLOYER:
	
 	HARLEY-DAVIDSON, INC.
	

/s/ Thomas E. Bergmann	By:  /s/ James L. Ziemer
	Thomas E. Bergmann	            James L. Ziemer
		            President and Chief Executive Officer

-5-

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