Document:

Exhibit
10.4

Execution
Copy

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2007-3

$120,000,000 MOTORCYCLE
CONTRACT BACKED NOTES, CLASS A-1

$65,000,000 MOTORCYCLE
CONTRACT BACKED NOTES, CLASS A-2a

$120,000,000 MOTORCYCLE
CONTRACT BACKED NOTES, CLASS A-2b

$230,000,000 MOTORCYCLE
CONTRACT BACKED NOTES, CLASS A-3

$174,660,000 MOTORCYCLE
CONTRACT BACKED NOTES, CLASS A-4

$50,832,000 MOTORCYCLE
CONTRACT BACKED NOTES, CLASS B

$21,508,000
MOTORCYCLE CONTRACT BACKED NOTES, CLASS C

HARLEY-DAVIDSON CUSTOMER
FUNDING CORP.

Trust
Depositor

HARLEY-DAVIDSON CREDIT
CORP.

Seller
and Servicer

UNDERWRITING
AGREEMENT

August 23, 2007

J.P. Morgan
Securities Inc.

Citigroup Global
Markets Inc.

ABN AMRO
Incorporated

BNP Paribas
Securities Corp.

Wachovia Capital
Markets, LLC

c/o J.P. Morgan
Securities Inc.

270 Park Avenue,
10th Floor

New York, NY 10017

Ladies and Gentlemen:

Harley-Davidson Customer
Funding Corp., a Nevada corporation (the “Trust Depositor”) and a wholly-owned
subsidiary of Harley-Davidson Credit Corp., a Nevada corporation (“Harley-Davidson”),
proposes to cause Harley-Davidson Motorcycle Trust 2007-3 (the “Trust”) to
issue and sell to you (the “Underwriters”) $120,000,000 principal amount of its
5.59420% Motorcycle Contract Backed Notes, Class A-1 (the “Class A-1 Notes”),
$65,000,000 principal amount of its 5.34% Motorcycle Contract Backed Notes,
Class A-2a (the “Class A-2a Notes”), $120,000,000 principal amount of its
1-month LIBOR + 0.25% Motorcycle Contract Backed Notes, Class A-2b (the “Class
A-2b Notes”), $230,000,000 principal amount of its 1-month LIBOR + 0.35%
Motorcycle Contract Backed Notes, Class A-3 (the “Class A-3 Notes”), $174,660,000
principal amount of its 5.52% Motorcycle Contract Backed Notes, Class A-4 (the “Class
A-4 Notes” and, together with the Class A-1 Notes, the Class A-2a Notes, the
Class A-2b Notes and the Class A-3 Notes, the “Class A Notes”), $50,832,000
principal amount of its 6.04%

Motorcycle Contract Backed Notes, Class B (the “Class
B Notes”) and $21,508,000 principal amount of its 6.91% Motorcycle Contract
Backed Notes, Class C (the “Class C Notes” and, together with the Class A Notes
and the Class B Notes, the “Notes”).  The
assets of the Trust will include a pool of motorcycle conditional sales
contracts (the “Contracts”) relating to motorcycles manufactured by one or more
subsidiaries of Harley-Davidson, Inc. (including Buell Motorcycle Company, LLC
(“Buell”), a wholly-owned subsidiary of Harley-Davidson, Inc.), and certain
other motorcycle manufacturers, certain monies received thereon after August 12,
2007 (the “Cutoff Date”), all insurance proceeds and liquidation proceeds with
respect thereto, security interests in the motorcycles financed thereby, the
related Contracts files, the Trust Accounts, proceeds of the foregoing, certain
rights with respect to funds on deposit from time to time in the Reserve Fund,
the Yield Supplement Account and certain other property.  The Contracts will be serviced for the Trust
by Harley-Davidson.  The Notes will be
issued pursuant to the Indenture to be dated as of August 15, 2007 (as amended
and supplemented from time to time, the “Indenture”) between the Trust and The
Bank of New York Trust Company, N.A., as indenture trustee (the “Indenture
Trustee”).  The Notes will be secured by
the assets of the Trust pursuant to the Indenture.  The Notes are hereinafter referred to as the
“Offered Securities”.

A certificate (the “Certificate”) will be issued
pursuant to a Trust Agreement dated as of August 1, 2007 (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”).  The Certificate will be
retained by the Trust Depositor and will not be offered pursuant to the
Preliminary Prospectus (as defined herein) or the Prospectus (as defined
herein).

The Trust will acquire the Contracts from the Trust
Depositor pursuant to a Sale and Servicing Agreement to be dated as of August
15, 2007 (as amended and supplemented from time to time, the “Sale and
Servicing Agreement”), among the Trust, the Trust Depositor, Harley-Davidson,
as servicer, and The Bank of New York Trust Company, N.A., as Indenture
Trustee.  Harley-Davidson will also agree
to perform certain administrative functions on behalf of the Trust pursuant to
an Administration Agreement to be dated as of August 15, 2007 (as amended and
supplemented from time to time, the “Administration Agreement”) among
Harley-Davidson, as administrator, the Trust and the Indenture Trustee.  The Trust Depositor will acquire the
Contracts from Harley-Davidson on the Closing Date (as defined herein) pursuant
to a Transfer and Sale Agreement to be dated as of August 15, 2007 (as amended
and supplemented from time to time, the “Transfer and Sale Agreement”) among
the Trust Depositor, as purchaser, and Harley-Davidson, as seller.  All of the assets conveyed to the Trust
pursuant to the Sale and Servicing Agreement are referred to herein as the
“Trust Property”.  Capitalized terms that
are used and not otherwise defined herein shall have the respective meanings
assigned thereto in the Sale and Servicing Agreement.

In connection with the issuance of the Class A-2b and
Class A-3 Notes, the Trust will enter into an ISDA Master Agreement (including
the Schedule thereto), to be dated as of the Closing Date (the “ISDA Master
Agreement”), between the Trust and JPMorgan Chase Bank, National Association
(the “Swap Counterparty”) and confirmations of interest rate swap transactions
relating to the Class A-2b and Class A-3 Notes, respectively, to be dated as of
the Closing Date (the “Confirmations” and together with the ISDA Master
Agreement, the “Swap Agreement”), between the Trust and the Swap Counterparty.

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In connection with the sale of the Offered Securities,
the Trust Depositor and Harley-Davidson will prepare a Prospectus Supplement to
be dated August 23, 2007 which will supplement the Base Prospectus dated as of
August 22, 2007.  The Prospectus sets
forth certain information concerning the Trust Depositor, Harley-Davidson, the
Trust and the Offered Securities.  The
Trust Depositor and Harley-Davidson hereby confirm that they have authorized
the use of the Prospectus, and any amendment or supplement thereto, in
connection with the offer and sale of the Offered Securities by the
Underwriters.  Unless stated to the
contrary, all references herein to the Prospectus are to the Prospectus as
defined herein and are not meant to include any amendment or supplement
thereto.

At or prior to the time when sales to purchasers of
the Offered Securities were first made to investors by the Underwriters, which
was approximately 4:50 p.m. on August 23, 2007 (the “Time of Sale”), the Trust
Depositor and Harley-Davidson had prepared the following information
(collectively, the “Time of Sale Information”): the preliminary prospectus
supplement dated August 22, 2007 (the “Preliminary Prospectus Supplement”) to
the base prospectus dated August 22, 2007 (the “Preliminary Base Prospectus”)
(together, along with information referred to under the caption “Appendix
A—Static Pool Information” therein regardless of whether it is deemed a part of
the Registration Statement or Prospectus, the “Preliminary Prospectus”).  If, subsequent to the Time of Sale and prior
to the Closing Date, such information included an untrue statement of material
fact or omitted to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, and as a result investors in the Offered Securities may
terminate their prior “Contracts of Sale” (within the meaning of Rule 159 under
the Securities Act of 1933, as amended (the “Act”)) for any Offered Securities
and the Underwriters enter into new Contracts of Sale with investors in the
Offered Securities, then “Time of Sale Information” will refer to the
information conveyed to investors at the time of entry into the first such new
Contract of Sale, in an amended Preliminary Prospectus approved by the Trust
Depositor, Harley-Davidson and the Underwriters that corrects such material misstatements
or omissions (a “Corrected Prospectus”) and “Time of Sale” will refer to the
time and date on which such new Contracts of Sale were entered into.

1.                                       Representations
and Warranties of Harley-Davidson and the Trust Depositor.  Harley-Davidson and the Trust Depositor
jointly and severally represent and warrant to each Underwriter as set forth
below in this Section 1:

(a)                                  A
registration statement on Form S-3 (No. 333-124935) relating to asset backed
notes, including the Offered Securities, has been filed by the Trust Depositor
with the Securities and Exchange Commission (the “Commission”) and has become
effective within the three years prior to the Closing Date, has been amended by
various post-effective amendments, the last of which is Post-Effective
Amendment No. 2 that became effective on April 13, 2006, and is still effective
as of the date hereof under the Act.

The Trust
Depositor proposes to file with the Commission pursuant to Rule 424(b) of the
rules and regulations of the Commission under the Act (the “Rules and
Regulations”) a prospectus supplement dated August 23, 2007 (together with
information referred to under the caption “Appendix A – Static Pool
Information”

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therein regardless
of whether it is deemed a part of the Registration Statement or Prospectus, the
“Prospectus Supplement”) to the prospectus dated August 22, 2007 (the “Base
Prospectus”), relating to the Offered Securities and the method of distribution
thereof.  Such registration statement, including
exhibits thereto, and such prospectus, as amended or supplemented to the date
hereof, and as further supplemented by the Prospectus Supplement, are
hereinafter referred to as the “Registration Statement” and the “Prospectus,”
respectively.  Any reference herein to
the terms “amend,” “amendment” or “supplement” with respect to the Registration
Statement, the Base Prospectus or the Prospectus Supplement shall include,
without limitation, any document filed under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), the Base Prospectus and the Prospectus
Supplement, as the case may be, deemed to be incorporated therein pursuant to
the Act.

The conditions to
the use of a registration statement on Form S-3 under the Act have been
satisfied.  The Trust Depositor has filed
the Preliminary Prospectus and it has done so within the applicable period of
time required under the Act and the Rules and Regulations.

(b)                                 The
Registration Statement, at the time it became effective, any post-effective
amendment thereto, at the time it became effective, the Preliminary Prospectus,
as of its date, and the Prospectus, as of the date of the Prospectus
Supplement, complied and on the Closing Date will comply in all material
respects with the applicable requirements of the Act and the Rules and Regulations
and the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”),
and the rules and regulations of the Commission thereunder.

The Registration
Statement, as of the most recent effective date as to each part of the
Registration Statement and any amendment thereto pursuant to Rule 430B(f)(2)
under the Act, did not include any untrue statement of a material fact and did
not omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading.

The Preliminary
Prospectus, as of its date and as of the Time of Sale, did not contain an
untrue statement of a material fact and did not omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

The Prospectus, as
of the date of the Prospectus Supplement and as of the Closing Date, does not
and will not contain any untrue statement of a material fact and did not and
will not omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

The
representations and warranties in the three preceding paragraphs do not apply
to (i) that part of the Registration Statement which shall constitute the
Statement of Eligibility and Qualification (Form T-1) of the Indenture Trustee
under the

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Trust Indenture
Act or (ii) information contained in or omitted from the Registration
Statement, the Preliminary Prospectus or the Prospectus (or any supplement
thereto) in reliance upon and in conformity with information furnished in
writing to the Trust Depositor by any Underwriter through J.P. Morgan
Securities Inc. specifically for use in connection with preparation of the
Registration Statement, the Preliminary Prospectus or the Prospectus (or any
supplement thereto), it being agreed that the only such information consists of
the statements in the second and third paragraphs (concerning initial offering
prices, concessions and reallowances) and in the fourth and fifth paragraphs
(concerning overallotment, stabilizing transactions and syndicate covering
transactions) under the heading “Underwriting” in the Preliminary Prospectus
Supplement and the Prospectus Supplement (such information, the “Underwriter
Information”).

The documents
incorporated by reference in the Registration Statement, the Preliminary
Prospectus and the Prospectus, when they became effective under the Act or were
filed with the Commission under the Exchange Act, as the case may be, conformed
in all material respects to the requirements of the Act or the Exchange Act, as
applicable, and the rules and regulations of the Commission thereunder; and any
further documents so filed and incorporated by reference in the Registration
Statement or the Prospectus, when such documents are filed with the Commission,
will conform in all material respects to the requirements of the Act or the
Exchange Act, as applicable, and the rules and regulations of the Commission
thereunder.

Since the
respective dates as of which information is given in the Preliminary Prospectus
there has not been any material adverse change, or any development involving a
prospective material adverse change, in or affecting the condition, financial
or otherwise, earnings, business or operations of the Trust Depositor or
Harley-Davidson, and their respective subsidiaries, taken as a whole, except as
set forth in the Preliminary Prospectus.

The Indenture has
been qualified under the Trust Indenture Act.

(c)                                  The
Time of Sale Information, at the Time of Sale, did not, and at the Closing Date
will not, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that
neither the Trust Depositor nor Harley-Davidson makes any representation and
warranty with respect to any statements or omissions made in reliance upon and
in conformity with the Underwriter Information. 
As of the Time of Sale, the Trust Depositor was not and as of the
Closing Date is not, an “ineligible issuer,” as defined in Rule 405 under the
Act.

(d)                                 [Reserved].

(e)                                  [Reserved].

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(f)                                    Neither
the Trust Depositor nor the Trust is, and neither the issuance and sale of the
Offered Securities nor the activities of the Trust pursuant to the Indenture or
the Trust Agreement will cause the Trust Depositor or the Trust to be, an
“investment company” or under the “control” of an “investment company” as such terms
are defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”).

(g)                                 This
Agreement has been duly authorized, executed and delivered by Harley-Davidson
and the Trust Depositor.

(h)                                 None
of Harley-Davidson, the Trust Depositor, any of their Affiliates or anyone
acting on behalf of Harley-Davidson, the Trust Depositor or any of their
Affiliates has taken any action that would require qualification of the Trust
Agreement under the Trust Indenture Act or registration of the Trust Depositor
under the Investment Company Act, nor will Harley-Davidson, the Trust Depositor
or any of their Affiliates act, nor have they authorized or will they authorize
any person to act, in such manner.

(i)                                     Neither
the Trust Depositor nor Harley-Davidson is in violation of any provision of any
existing law or regulation or in default in the performance or observance of
any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan agreement, note, lease or other
instrument to which it is a party or by which it is bound or to which any of
its property is subject, which violations or defaults separately or in the
aggregate would have a material adverse effect on the Trust Depositor,
Harley-Davidson or the Trust.

(j)                                     Neither
the issuance and sale of the Offered Securities, nor the execution and delivery
by the Trust Depositor or Harley-Davidson of this Agreement, the Offered
Securities, the Sale and Servicing Agreement, the Transfer and Sale Agreement,
the Trust Agreement, the Administration Agreement, the Lockbox Agreement or the
Indenture, nor the incurrence by the Trust Depositor or Harley-Davidson of the
obligations herein and therein set forth, nor the consummation of the
transactions contemplated hereunder or thereunder, nor the fulfillment of the
terms hereof or thereof does or will (i) violate any existing law or
regulation, applicable to it or its properties or by which it or its properties
are or may be bound or affected, (ii) conflict with, or result in a breach of,
or constitute a default under, any material indenture, contract, agreement,
deed, lease, mortgage or instrument to which it is a party or by which it or
its properties are bound or (iii) result in the creation or imposition of any
lien upon any of its property or assets, except for those encumbrances created
under the Transfer and Sale Agreement, the Sale and Servicing Agreement, the
Trust Agreement or the Indenture.

(k)                                  All
consents, approvals, authorizations, orders, filings, registrations or
qualifications of or with any court or any other governmental agency, board,
commission, authority, official or body required in connection with the
execution and delivery by the Trust Depositor and Harley-Davidson of this
Agreement, the

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Offered Securities,
the Sale and Servicing Agreement, the Transfer and Sale Agreement, the Trust
Agreement, the Administration Agreement, the Indenture or the Lockbox
Agreement, or to the consummation of the transactions contemplated hereunder
and thereunder, or to the fulfillment of the terms hereof and thereof, have
been or will have been obtained on or before the Closing Date.

(l)                                     All
actions required to be taken by the Trust Depositor and Harley-Davidson as a
condition to the offer and sale of the Offered Securities as described herein
or the consummation of any of the transactions described in the Preliminary
Prospectus and the Prospectus have been or, prior to the Closing Date, will be
taken.

(m)                               The
representations and warranties of each of the Trust Depositor and
Harley-Davidson in (or incorporated in) the Sale and Servicing Agreement, the
Transfer and Sale Agreement, the Trust Agreement, the Indenture, the
Administration Agreement and the Lockbox Agreement, and made in any Officer’s
Certificate of the Trust Depositor or Harley-Davidson delivered pursuant to the
Sale and Servicing Agreement, the Indenture and the Transfer and Sale Agreement
will be true and correct at the time made and on and as of the Closing Date as
if set forth herein.

(n)                                 The
Contracts conveyed to the Trust had aggregate outstanding balances determined
as of the Cutoff Date in the amount set forth in the Preliminary Prospectus and
the Prospectus.

(o)                                 Each
of the Trust Depositor and Harley-Davidson agrees it shall not grant, assign,
pledge or transfer to any Person a security interest in, or any other right,
title or interest in, the Contracts, except as provided in the Sale and
Servicing Agreement, the Trust Agreement, the Indenture and the Transfer and
Sale Agreement and each agrees to take all action necessary in order to
maintain the security interest in the Contracts granted pursuant to the Sale
and Servicing Agreement, the Trust Agreement, the Indenture and the Transfer
and Sale Agreement.

(p)                                 There
are no actions, proceedings or investigations pending, or to the best knowledge
of either the Trust Depositor or Harley-Davidson, threatened against the Trust
Depositor or Harley-Davidson before any court or before any governmental
authority of arbitration board or tribunal which, if adversely determined,
could materially and adversely affect, either in the individual or in the
aggregate, the financial position, business, operations or prospects of the
Trust Depositor or Harley-Davidson.

(q)                                 For
Illinois income, franchise and excise tax purposes, under the provisions of
Illinois law as of the Closing Date, the Trust will not be classified as an
association taxable as a corporation.

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(r)                                    Under
generally accepted accounting principles, Harley-Davidson will report its
transfer of the Contracts to the Trust Depositor pursuant to the Transfer and
Sale Agreement as a sale of the Contracts.

2.                                       Representations
and Warranties of the Underwriters. 
Each Underwriter, severally and not jointly, represents and warrants to,
and agrees with, the Trust Depositor that:

(a)                                  It
has only communicated or caused to be communicated and it will only communicate
or cause to be communicated any invitation or inducement to engage in
investment activity (within the meaning of Section 21 of the Financial Services
and Markets Act 2000 of the United Kingdom (“FSMA”)) received by it in
connection with the issue or sale of any Offered Securities in circumstances in
which Section 21(1) of the FSMA does not apply to the Trust.

(b)                                 It
has complied and will comply with all applicable provisions of the FSMA with
respect to anything done by it in relation to any Offered Securities in, from
or otherwise involving the United Kingdom.

3.                                       Purchase
and Sale.  Subject to the terms and
conditions and in reliance upon the representations and warranties herein set
forth, the Trust Depositor agrees to cause the Trust to sell to each
Underwriter, and each Underwriter agrees, severally and not jointly, to
purchase from the Trust, each of the Offered Securities in the principal
amounts and at the purchase prices set forth opposite its name in Schedule I
hereto.

4.                                       Delivery
and Payment.  Delivery of and payment
for the Offered Securities shall be made at the office of Winston & Strawn
LLP, 35 Wacker Drive, Chicago, Illinois, at 10:00 A.M., Chicago time,
on August 30, 2007, or such later date (not later than September 13, 2007) as
the Underwriters shall designate, which date and time may be postponed by
agreement among the Underwriters and the Trust Depositor (such date and time of
delivery and payment for the Offered Securities being herein called the
“Closing Date”).

Each class of the Offered Securities will be
represented initially by one or more definitive global certificates in
registered form which will be deposited by or on behalf of the Trust with The
Depository Trust Company (“DTC”) or, on DTC’s behalf, with DTC’s designated
nominee or custodian and duly endorsed to DTC or in blank by an effective
endorsement.  The Trust will transfer the
Offered Securities in book-entry form to the account of each Underwriter,
against payment by the Underwriters of the purchase price therefor by wire
transfer payable to the order of Harley-Davidson in federal (same day) funds
(to such account or accounts as Harley-Davidson shall designate), by causing
DTC to credit the Offered Securities to the account of each Underwriter at
DTC.  Harley-Davidson will cause the
global certificates referred to above to be made available to the Underwriters
for checking at least 24 hours prior to the Closing Date at the office of DTC or
its designated custodian.

5.                                       Offering
by the Underwriters.  It is
understood that the several Underwriters propose to offer the Offered
Securities for sale to the public (which may include selected dealers), as set
forth in the Prospectus.

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6.                                       Agreements.  The Trust Depositor and Harley-Davidson,
jointly and severally, agree with the Underwriters that:

(a)                                  Prior
to the termination of the offering of the Offered Securities, the Trust
Depositor will not file any amendment to the Registration Statement or any
amendment, supplement or revision to either the Preliminary Prospectus or to
the Prospectus, unless the Trust Depositor has furnished you a copy for your
review prior to such proposed filing or use, as the case may be, and will not
file or use any such document to which you shall reasonably object.  Subject to the foregoing sentence, the Trust
Depositor will effect the filings required under Rule 424(b) under the Act in
the manner and within the time period required by Rule 424(b) (without reliance
on Rule 424(b)(8)), and will provide evidence satisfactory to you of such
timely filing.

(b)                                 During
the period when a prospectus is required by the Act or the Exchange Act to be
delivered in connection with sales of the Offered Securities (the “Prospectus
Delivery Period”), Harley-Davidson will notify you promptly, and confirm the
notice in writing, of (i) the effectiveness of any post-effective amendment to
the Registration Statement or the filing of any supplement or amendment to the
Prospectus, (ii) the receipt of any comments from the Commission, (iii) any
request by the Commission for any amendment to the Registration Statement or
any amendment or supplement to the Prospectus or any document incorporated by
reference therein or otherwise deemed to be a part thereof or for additional
information, (iv) the issuance by the Commission of any stop order suspending
the effectiveness of the Registration Statement or of any order preventing or
suspending the use of any Preliminary Prospectus, or of the suspension of the
qualification of the Offered Securities for offering or sale in any
jurisdiction, or of the initiation or threatening of any proceedings for any of
such purposes and (v) the happening of any event which makes the Registration
Statement or the Prospectus contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading.  Harley-Davidson will make every reasonable
effort to prevent the issuance of any stop order and, if any stop order is
issued, to obtain as soon as possible the lifting thereof.

(c)                                  If
during the Prospectus Delivery Period any event shall occur or condition shall
exist as a result of which it is necessary to amend the Registration Statement
or amend or supplement the Prospectus in order that the Prospectus will not
include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it shall be
necessary during the Prospectus Delivery Period to amend the Registration
Statement or amend or supplement the Prospectus in order to comply with the
requirements of the Act or the Rules and Regulations, Harley-Davidson will
promptly notify you and will promptly prepare and file with the Commission,
subject to the review and approval provisions afforded to you described in
Section 6(a), such amendment or supplement as may be necessary to correct such
statement or omission or to make

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the Registration
Statement, the Preliminary Prospectus or the Prospectus comply with such
requirements.  Harley-Davidson will use
its best efforts to have such amendment or new registration statement declared
effective as soon as practicable, and Harley-Davidson will furnish to the
Underwriters, without charge, such number of copies of such amendment or
supplement as the Underwriters may reasonably request.  Any such filing shall not operate as a waiver
or limitation of any right of any Underwriter hereunder.

(d)                                 Upon
request, Harley-Davidson will deliver to the Underwriters and counsel for the
Underwriters, without charge, photocopies of the signed Registration Statement
at the time it originally became effective (the “Original Registration
Statement”) and of each amendment thereto (including exhibits filed therewith)
prior to the Closing Date.  The copies of
the Original Registration Statement and each amendment thereto furnished to the
Underwriters will be identical to the electronically transmitted copies thereof
filed with the Commission pursuant to its Electronic Data Gathering, Analysis
and Retrieval system (“EDGAR”), except to the extent permitted by Regulation
S-T under the Act.

(e)                                  Prior
to the availability of the Prospectus, Harley-Davidson will deliver to the
Underwriters, without charge, as many copies of the Preliminary Prospectus as
the Underwriters may reasonably request, and Harley-Davidson and the Trust
Depositor hereby consent to the use of such copies for purposes permitted by
the Act.  Harley-Davidson will furnish to
the Underwriters, without charge, during the Prospectus Delivery Period, such
number of copies of the Prospectus as the Underwriters may reasonably request.  The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to any
electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T under the Act.  Harley-Davidson will pay the expenses of
printing or other production of all documents relating to the offering.

(f)                                    The
Trust Depositor will comply with the Act and the Rules and Regulations, the
Exchange Act and the rules and regulations thereunder and the Trust Indenture
Act and the rules and regulations thereunder so as to permit the completion of
the distribution of the Offered Securities as contemplated in this Agreement,
the Basic Documents, the Registration Statement and the Prospectus.

(g)                                 The
Trust Depositor will arrange for the qualification of the Offered Securities
for sale by the Underwriters under the laws of such jurisdictions as the
Underwriters may designate and will maintain such qualifications in effect so
long as required for the sale of the Offered Securities.  The Trust Depositor will promptly advise the
Underwriters of the receipt by the Trust Depositor of any notification with
respect to the suspension of the qualification of the Offered Securities for
sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose.

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(h)                                 The
Trust Depositor and Harley-Davidson will cooperate with the Underwriters and
use their best efforts to permit the Offered Securities to be eligible for
clearance and settlement through DTC.

(i)                                     For
a period from the date of this Agreement until the retirement of the Offered
Securities, the Servicer will deliver to you the monthly servicing reports, the
annual statements of compliance, annual assessments of compliance with
servicing criteria and accountants’ attestations in respect of such assessments
furnished to the Indenture Trustee or the Owner Trustee pursuant to the Sale
and Servicing Agreement, the Indenture, the Trust Agreement or the
Administration Agreement, as soon as such statements and reports are furnished
to the Indenture Trustee or the Owner Trustee.

(j)                                     So
long as any of the Offered Securities is outstanding, Harley-Davidson will
furnish to you (i) as soon as practicable after the end of the fiscal year all
documents required to be distributed to holders of Offered Securities or filed
with the Commission pursuant to the Exchange Act or any order of the Commission
thereunder and (ii) from time to time, any other information concerning
Harley-Davidson or the Trust Depositor filed with any government or regulatory
authority that is otherwise publicly available, as you may reasonably request.

(k)                                  To
the extent, if any, that the rating provided with respect to the Offered
Securities by Moody’s Investors Service, Inc. (“Moody’s”) or Standard &
Poor’s Ratings Services, a division of the McGraw-Hill Companies, (“S&P”
and together with Moody’s, the “Rating Agencies”) is conditional upon the
furnishing of documents or the taking of any actions by the Trust Depositor,
the Trust Depositor shall furnish such documents and take such actions.

(l)                                     Until
30 days following the Closing Date, neither the Trust Depositor nor any trust
or other entity originated, directly or indirectly, by the Trust Depositor or
Harley-Davidson will, without the prior written consent of the Underwriters,
offer, sell or contract to sell, or otherwise dispose of, directly or
indirectly, or announce the offering of, any asset-backed securities
collateralized by motorcycle contracts originated in the United States (other
than the Offered Securities).

(m)                               The
Trust Depositor will enter into the Trust Agreement, Harley-Davidson will enter
into the Administration Agreement, the Trust Depositor, Harley-Davidson, the
Indenture Trustee and the Trust will enter into the Sale and Servicing
Agreement and Harley-Davidson and the Trust Depositor will enter into the
Transfer and Sale Agreement on or prior to the Closing Date.

(n)                                 In
accordance with Section 11, Harley-Davidson will cause any Trust Free Writing
Prospectus (as defined in Section 11 hereof) with respect to the Offered
Securities to be filed with the Commission to the extent required by Rule 433
under the Act.

(o)                                 [Reserved].

 11
 

(p)                                 [Reserved].

7.                                       Payment
of Expenses, Etc.  If the
transactions contemplated by this Agreement are consummated or this Agreement
is terminated pursuant to Section 13, the Trust Depositor will pay all expenses
incident to the performance of its obligations under this Agreement, including
(i) the printing and filing of the Registration Statement as originally filed
and of each amendment thereto, (ii) the printing of the Preliminary Prospectus,
the Prospectus and each amendment thereto, (iii) the fees of the Trustee and
its counsel, (iv) the preparation, issuance and delivery of the Offered
Securities to the Underwriters, (v) the fees and disbursements of the Trust
Depositor’s accountants, (vi) the qualification of the Offered Securities under
securities laws in accordance with the provisions of Section 6(g), including
filing fees in connection therewith, (vii) the printing and delivery to the
Underwriters of copies of the Registration Statement as originally filed and of
each amendment thereto, (viii) the printing and delivery to the Underwriters of
copies of the Preliminary Prospectus, the Prospectus and of each amendment
thereto, (ix) the printing and delivery to the Underwriters of copies of any
blue sky or legal investment survey prepared in connection with the Offered
Securities, (x) any fees charged by Rating Agencies for the rating of the
Offered Securities and (xi) the costs and expenses (including any damages or
other amounts payable in connection with legal and contractual liability)
associated with reforming any Contracts for Sale of the Offered Securities made
by the Underwriters caused by a Defective Prospectus or a breach of any
representation in Section 1(b) or Section 1(c).

8.                                       Conditions
to the Obligation of the Underwriters. 
The obligation of the Underwriters to purchase the Offered Securities
shall be subject to the accuracy of the representations and warranties on the
part of the Trust Depositor and Harley-Davidson contained herein at the date
and time that this Agreement is executed and delivered by the parties hereto
(the “Execution Time”) and the Closing Date, to the accuracy of the statements
of the Trust Depositor and Harley-Davidson made in any certificates pursuant to
the provisions hereof, to the performance by the Trust Depositor and
Harley-Davidson of their respective obligations hereunder and to the following
additional conditions:

(a)                                  If
the Registration Statement has not become effective prior to the Execution
Time, unless the Underwriters agree in writing to a later time, the
Registration Statement shall have become effective not later than (i) 6:00 P.M.
New York City time on the date of determination of the public offering price,
if such determination occurs at or prior to 3:00 P.M. New York City
time on such date or (ii) 12:00 noon New York City time on the business day
following the day on which the public offering price was determined, if such
determination occurs after 3:00 P.M. New York City time on such date.

(b)                                 Each
of the Preliminary Prospectus, the Prospectus and any supplements thereto shall
have been filed with the Commission in the manner and within the applicable
time period required under Rule 424(b) under the Act (without reference to Rule
424(b)(8)) in accordance with the Rules and Regulations and Section 6(a)
hereof, and prior to the Closing Date, no stop order suspending the
effectiveness of the Registration Statement shall have been issued and no
proceedings for that purpose shall have been instituted or, to the knowledge of
the

 12
 

Trust Depositor or
you, shall be contemplated by the Commission or by any authority administering
any state securities or blue sky law; and any requests for additional
information from the Commission with respect to the Registration Statement
shall have been complied with.

(c)                                  The
Trust Depositor shall have furnished to the Underwriters the opinions of
Winston & Strawn LLP, counsel for the Trust Depositor, and with respect to
Nevada opinions, Hale Lane Peek Dennison and Howard, special Nevada counsel,
each dated the Closing Date and satisfactory in form and substance to the
Underwriters, to the effect that:

(i)  the Trust Depositor has been duly
incorporated and is validly existing as a corporation in good standing under
the laws of the State of Nevada, with full corporate power and authority to own
its properties and conduct its business as described in the Preliminary
Prospectus and the Prospectus, and is duly qualified to do business as a
foreign corporation and is in good standing under the laws of the State of
Illinois;

(ii)  each of the Transfer and Sale Agreement, the
Sale and Servicing Agreement and the Trust Agreement have been duly authorized,
executed and delivered by the Trust Depositor, and constitutes a legal, valid
and binding obligation of the Trust Depositor enforceable against the Trust
Depositor in accordance with its terms (subject, as to the enforcement of
remedies, to applicable bankruptcy, reorganization, insolvency, moratorium or
other laws affecting creditors’ rights generally from time to time in effect);

(iii)  this Agreement has been duly authorized,
executed and delivered by the Trust Depositor;

(iv)  the direction by the Trust Depositor to the
Indenture Trustee to authenticate the Notes has been duly authorized by the
Trust Depositor and, when the Notes have been duly executed and delivered by
the Owner Trustee and when authenticated by the Indenture Trustee in accordance
with the Indenture and delivered and paid for pursuant to this Agreement, the
Notes will constitute legal, valid and binding obligations of the Trust
(subject, as to enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting creditor’s
rights generally from time to time in effect) and will be entitled to the
benefits of the Indenture;

(v)  no consent, approval, authorization or order
of, or filing with, any court or governmental agency or body is required for
the consummation of the transactions contemplated herein or in the Transfer and
Sale Agreement, the Sale and Servicing Agreement, and the Indenture
(collectively, the “Basic Documents”), except such as may be required under the
blue sky or securities laws of any jurisdiction in connection with the purchase
and sale of the Offered Securities by the Underwriters, the filing of the UCC-1
financing statements relating to the conveyance of the Contracts by
Harley-Davidson to the Trust

 13
 

Depositor and of
the Contracts and the other Trust Property by the Trust Depositor to the Trust
and by the Trust to the Indenture Trustee on behalf of the Noteholders, and
such other approvals (which shall be specified in such opinion) as have been
obtained and filings as have been made or are in the process of being made;

(vi)  none of the sale of the Contracts by
Harley-Davidson to the Trust Depositor pursuant to the Transfer and Sale
Agreement, the sale of the Trust Property to the Trust pursuant to the Sale and
Servicing Agreement, the pledge of the Trust Property to the Indenture Trustee,
the issue and sale of the Notes, the execution and delivery of this Agreement,
the Sale and Servicing Agreement, the Transfer and Sale Agreement, the Trust
Agreement or the Indenture, the consummation of any other of the transactions
herein or therein contemplated or the fulfillment of the terms hereof or
thereof will conflict with, result in a breach or violation of, or constitute a
default under, any law binding on the Trust Depositor or the charter or bylaws
of the Trust Depositor or the terms of any indenture or other agreement or
instrument known to such counsel and to which the Trust Depositor is a party or
by which it is bound, or any judgment, order or decree known to such counsel to
be applicable to the Trust Depositor of any court, regulatory body,
administrative agency, governmental body or arbitrator having jurisdiction over
the Trust Depositor;

(vii)  there are no actions, proceedings or
investigations pending or, to the best of such counsel’s knowledge after due
inquiry, threatened before any court, administrative agency or other tribunal
(A) asserting the invalidity of any of the Basic Documents, (B) seeking to
prevent the consummation of any of the transactions contemplated by any of the
Basic Documents or the execution and delivery thereof or (C) that might
materially and adversely affect the performance by the Trust Depositor of its
obligations under, or the validity or enforceability of, this Agreement or any
Basic Document;

(viii)  to the best knowledge of such counsel and
except as set forth in the Preliminary Prospectus and the Prospectus, no
default exists and no event has occurred which, with notice, lapse of time or
both, would constitute a default in the due performance and observance of any
term, covenant or condition of any agreement to which the Trust Depositor is a
party or by which it is bound, which default is or would have a material
adverse effect on the financial condition, earnings, prospects, business or
properties of the Trust Depositor, taken as a whole;

(ix)   the provisions of the Transfer and Sale
Agreement are effective to transfer to the Trust Depositor all right, title and
interest of Harley-Davidson in and to the Contracts, and to the knowledge of
such counsel, the other Trust Property will be owned by the Trust Depositor
free and clear of any Lien except for the Lien of the Sale and Servicing
Agreement and the Indenture;

 14
 

(x)   the provisions of the Sale and Servicing
Agreement are effective to transfer to the Trust all right, title and interest
of the Trust Depositor in and to the Collateral and the Contracts and to the
knowledge of such counsel, the other Collateral, will be owned by the Trust
free and clear of any Lien except for the Lien of the Indenture;

(xi)   the provisions of the Indenture are
effective to create, in favor of the Indenture Trustee for the benefit of the
Noteholders as security for the Trust’s obligations under the Notes, a valid
security interest in the Contracts and that portion of the other Collateral
which is subject to Article 9 of the Illinois Uniform Commercial Code (the “UCC
Collateral”) and the proceeds thereof;

(xii)   the form UCC-1 financing statements naming
(A) Harley-Davidson as seller and the Trust Depositor as purchaser, (B) the
Trust Depositor as seller and the Trust as purchaser and (C) the Trust, as
debtor, and the Indenture Trustee, as secured party are in appropriate form for
filing with the Secretary of State of the State of Nevada; the interest of the
Indenture Trustee in the Contracts and the proceeds thereof and, to the extent
that the filing of a financing statement is effective to perfect an interest in
the other Trust Property under Article 9 of the Nevada Uniform Commercial Code,
the other Trust Property will be perfected upon the filing of such financing
statements in such filing offices; and no other interest of any other purchaser
from or creditor of Harley-Davidson, the Trust Depositor or the Trust is equal
or prior to the interest of the Trustee in the Contracts and such other Trust
Property;

(xiii)  the Contracts are “tangible chattel paper”
under Article 9 of the Illinois Uniform Commercial Code and the Nevada Uniform
Commercial Code;

(xiv)  the Basic Documents conform in all material
respects with the descriptions thereof contained in the Preliminary Prospectus
and the Prospectus;

(xv)   the statements in the Preliminary Base
Prospectus and the Base Prospectus under the headings “Risk Factors” and “Legal
Aspects of the Contracts”, to the extent they constitute matters of law or
legal conclusions with respect thereto, have been reviewed by such counsel and
are correct in all material respects;

(xvi)  the statements contained in the Preliminary
Base Prospectus and the Base Prospectus under the headings “Description of the
Notes and Indenture” and “Information Regarding the Notes” and in the
Preliminary Prospectus Supplement and the Prospectus Supplement under the
headings “Description of the Notes” and “Certain Information Regarding the
Notes”, insofar as such statements constitute a summary of the Offered
Securities and the Basic Documents, constitute a fair summary of such
documents;

(xvii)  the Indenture has been duly qualified under
the Trust Indenture Act of 1939, as amended;

 15
 

(xviii)  the Indenture, the Sale and Servicing
Agreement and the Administration Agreement have been duly authorized and, when
duly executed and delivered by the Owner Trustee, will constitute the legal,
valid and binding obligations of the Trust, enforceable against the Trust in
accordance with their terms, except (A) the enforceability thereof may be
subject to bankruptcy, insolvency, reorganization, moratorium or other similar
laws now or hereafter in effect relating to creditors’ rights and (B) the
remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought;

(xix)  the Trust Depositor is not, nor will the
Trust Depositor become as a result of the offer and sale of the Offered
Securities as contemplated in the Preliminary Prospectus, the Prospectus and
the Basic Documents, an “investment company” as defined in the Investment
Company Act or a company “controlled by” an “investment company” within the
meaning of the Investment Company Act;

(xx)   to the best knowledge of such counsel, the
Trust Depositor has obtained all material licenses, permits and other
governmental authorizations that are necessary to the conduct of its business;
such licenses, permits and other governmental authorizations are in full force
and effect, and the Trust Depositor is in all material respects complying
therewith; and the Trust Depositor is otherwise in compliance with all laws,
rules, regulations and statutes of any jurisdiction to which it is subject,
except where non-compliance would not have a material adverse effect on the
Trust Depositor;

(xxi)  all actions required to be taken, and all
filings required to be made, by the Trust Depositor or Harley-Davidson under
the Act and the Exchange Act prior to the sale of the Offered Securities have
been duly taken or made;

(xxii)  to the best of such counsel’s knowledge and
information, there are no legal or governmental proceedings pending or
threatened that are required to be disclosed in the Registration Statement,
other than those disclosed therein;

(xxiii)  to the best of such counsel’s knowledge and
information, there are no contracts, indentures, mortgages, loan agreements,
notes, leases or other instruments required to be described or referred to in
the Registration Statement or to be filed as exhibits thereto other than those
described or referred to therein or filed or incorporated by reference as
exhibits thereto, the descriptions thereof or references thereto are correct,
and no default exists in the due performance or observance of any material
obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, loan agreement, note, lease or other instrument so
described, referred to, filed or incorporated by reference;

(xxiv)  the Registration Statement has become
effective under the Act, any required filings of the Preliminary Prospectus and
the Prospectus, and any

 16

supplements
thereto, pursuant to Rule 424(b) under the Act have been made in the manner and
within the time period required by Rule 424(b) (without reference to Rule
424(b)(8)), and, to the best knowledge of such counsel, no stop order
suspending the effectiveness of the Registration Statement has been issued, and
no proceedings for that purpose have been instituted or are pending or
contemplated under the Act, and the Registration Statement, Preliminary
Prospectus and the Prospectus, and each amendment or supplement thereto, as of
their respective effective or issue dates, complied as to form in all material
respects with the requirements of the Act, the Exchange Act, the Trust
Indenture Act and the Rules and Regulations;

(xxv)  such counsel has examined the Registration
Statement, the Time of Sale Information and the Prospectus and nothing has come
to such counsel’s attention that would lead such counsel to believe that (a)
the Registration Statement, at the time it initially became effective, at the
time Post-Effective Amendment No. 2 thereto became effective and at each deemed
effective date with respect to the Underwriters pursuant to Rule 430B(f)(2)
under the Act, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, (b) the Preliminary Prospectus, at the Time of Sale,
contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading or (c) the Prospectus, at the date thereof and at the Closing Date,
included or includes any untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading (in each of clauses (a), (b) and (c), except for the financial
statements and related schedules or other financial or statistical data
included or incorporated by reference therein and that part of the Registration
Statement which shall constitute the Statement of Eligibility and Qualification
(Form T-1) of the Indenture Trustee under the Trust Indenture Act, as to which
such counsel will not be called upon to express a belief); and

(xxvi)  the Class A-1 Notes are “eligible securities”
within the meaning of Rule 2a-7 of the Investment Company Act.

In rendering such opinion, such counsel may rely (A)
as to matters involving the application of laws of any jurisdiction other than
the State of Illinois, the State of New York, the State of Delaware or the
United States, to the extent such counsel deems proper and specifies in such
opinion, upon the opinion of other counsel of good standing whom such counsel
believes to be reliable and who are satisfactory to the Underwriters and (B) as
to matters of fact, to the extent such counsel deems proper, on certificates of
responsible officers of the Trust Depositor and public officials.

All references in this Section 8(c) to the Prospectus
shall be deemed to include any amendment or supplement thereto at the Closing
Date.

 17
 

(d)                                 The
Underwriters shall have received the opinion of Linda J. Dunn, General Counsel
for Harley-Davidson, dated the Closing Date and satisfactory in form and
substance to the Underwriters, to the effect that:

(i)  Harley-Davidson has obtained all material
licenses, permits and other governmental authorizations that are necessary to
the conduct of its business; such licenses, permits and other governmental
authorizations are in full force and effect, and Harley-Davidson is in all
material respects complying therewith and Harley-Davidson is otherwise in
compliance with all laws, rules, regulations and statutes of any jurisdiction
to which it is subject, except where non-compliance would not have a material
adverse effect on Harley-Davidson; and

(ii)  none of the execution and delivery of this
Agreement or the Transfer and Sale Agreement, the consummation of any of the
transactions therein contemplated or the fulfillment of the terms thereof will
conflict with, result in a breach or violation of, or constitute a default
under, any law or the charter or bylaws of Harley-Davidson or the terms of any
indenture or other agreement or instrument known to such counsel and to which
Harley-Davidson or the Trust Depositor is a party or by which it is bound or
any judgment, order or decree known to such counsel to be applicable to
Harley-Davidson or the Trust Depositor of any court, regulatory body,
administrative agency, governmental body, or arbitrator having jurisdiction
over Harley-Davidson or the Trust Depositor.

In rendering such opinion, such counsel may rely (A)
as to matters involving the application of laws of any jurisdiction other than
the State of Illinois or the United States, to the extent such counsel deems
proper and specifies in such opinion, upon the opinion of other counsel of good
standing whom such counsel believes to be reliable and who are satisfactory to
the Underwriters and (B) as to matters of fact, to the extent such counsel
deems proper, on certificates of responsible officers of Harley-Davidson and
public officials.

(e)                                  The
Underwriters shall have received the opinion of Winston & Strawn LLP,
counsel for Harley-Davidson, dated the Closing Date and satisfactory in form
and substance to the Underwriters, to the effect that:

(i)  Harley-Davidson has been duly incorporated and
is validly existing as a corporation in good standing under the laws of the
State of Nevada, with full corporate power and authority to own its properties
and conduct its business as described in the Preliminary Prospectus and the
Prospectus;

(ii)  this Agreement has been duly authorized,
executed and delivered by Harley-Davidson;

(iii)  the Sale and Servicing Agreement has been
duly authorized, executed and delivered by Harley-Davidson and constitutes a
legal, valid and binding obligation of Harley-Davidson, enforceable against
Harley-Davidson in accordance with its terms (subject, as to the enforcement of
remedies, to

 18
 

applicable
bankruptcy, reorganization, insolvency, moratorium, or other laws affecting
creditors’ rights generally from time to time in effect);

(iv)  the Transfer and Sale Agreement has been duly
authorized, executed and delivered by Harley-Davidson and constitutes a legal,
valid and binding obligation of Harley-Davidson, enforceable against
Harley-Davidson in accordance with its terms (subject, as to the enforcement of
remedies, to applicable bankruptcy, reorganization, insolvency, moratorium, or
other laws affecting creditors’ rights generally from time to time in effect);

(v)  no consent, approval, authorization or order
of, or filing with, any court or governmental agency or body is required for
the consummation of the transactions contemplated herein or in any Basic
Document, except such as may be required under the blue sky or securities laws
of any jurisdiction in connection with the purchase and sale of the Offered
Securities by the Underwriters, the filing of the UCC-1 financing statements
relating to the conveyance of the Contracts by Harley-Davidson to the Trust
Depositor pursuant to the Transfer and Sale Agreement and of the Contracts and
other Trust Property to the Trust and of the Contracts and other Trust Property
to the Indenture Trustee for the benefit of the Noteholders pursuant to the
Sale and Servicing Agreement, the Trust Agreement and the Indenture, and such
other approvals (which shall be specified in such opinion) as have been
obtained and filings as have been made or are in the process of being made; and

(vi)  none of the execution and delivery of this
Agreement, the Sale and Servicing Agreement, the Transfer and Sale Agreement,
the consummation of any of the transactions therein contemplated or the
fulfillment of the terms thereof will conflict with, result in a breach or
violation of, or constitute a default under, the charter or bylaws of
Harley-Davidson.

In rendering such opinion, such counsel may rely (A)
as to matters involving the application of laws of any jurisdiction other than
the State of New York, the State of Delaware, the State of Illinois or the
United States, to the extent such counsel deems proper and specifies in such
opinion, upon the opinion of other counsel of good standing whom such counsel
believes to be reliable and who are satisfactory to the Underwriters and (B) as
to matters of fact, to the extent such counsel deems proper, on certificates of
responsible officers of Harley-Davidson and public officials.

All references in this Section 8(e) to the Prospectus
shall be deemed to include any amendment or supplement thereto at the Closing
Date.

(f)                                    The
Underwriters shall have received an opinion addressed to them from Winston
& Strawn LLP, in its capacity as federal tax counsel for the Trust
Depositor, to the effect that the statements in the Preliminary Prospectus and
the Prospectus under the headings “Prospectus Supplement Summary — Tax Status” and
“Material Federal Income Tax Consequences” accurately describe the material
federal income tax consequences to holders of the Offered Securities.

 19
 

Winston &
Strawn LLP, in its capacity as special ERISA counsel to the Trust Depositor,
shall have delivered an opinion to the effect that the statements in the
Preliminary Prospectus and the Prospectus under the headings “Prospectus
Supplement Summary — ERISA Considerations” and “ERISA Considerations”, to the
extent that they constitute statements of matters of law or legal conclusions
with respect thereto, have been prepared or reviewed by such counsel and
accurately describe the material consequences to holders of the Offered
Securities under ERISA.

(g)                                 The
Underwriters shall have received from Sidley Austin LLP such opinion or opinions, dated the Closing Date, with
respect to the issuance and sale of the Offered Securities, the Preliminary
Prospectus, the Prospectus (as amended or supplemented at the Closing Date) and
other related matters as the Underwriters may reasonably require, and the Trust
Depositor shall have furnished to such counsel such documents as they request
for the purpose of enabling them to pass upon such matters.

(h)                                 The
Underwriters shall have received an opinion addressed to the Underwriters, the
Trust Depositor and the Servicer of Morris, James, Hitchens & Williams,
counsel to Wilmington Trust Company (the “Trust Company”) and special Delaware
counsel for the Trust, dated the Closing Date and satisfactory in form and
substance to the Underwriters, to the effect that:

(i)  the Trust has been duly organized and is
validly existing in good standing as a “statutory trust” within the meaning of
the Delaware Statutory Trust Act, 12 Del. C. c.38;

(ii)  the Trust Company is a Delaware banking
corporation, duly organized and validly existing in good standing under the
laws of the State of Delaware and has all necessary power and authority to
enter into, to deliver and perform its obligations under the Trust Agreement
and to act as the Owner Trustee and to enter into, deliver and perform its
obligations as Owner Trustee under each of the other Transaction Documents to
which the Trust or the Owner Trustee, as the case may be, is a party;

(iii)  the execution, delivery and performance by
the Trust of each of the Transaction Documents to which it is a party (i) has
been duly authorized by the Trust Agreement, and (ii) does not require the
consent or approval of, or the giving of notice to, the registration with, or
the taking of any other action in respect of any governmental authority or
agency of the United States federal government or the State of Delaware
regulating the banking and trust powers of the Trust Company, other than the
filing with the Secretary of State of a certificate of trust pursuant to 12 Del.
C. § 3810, which filing has been made. 
Upon the due execution and delivery of the Trust Agreement by the Trust
Company, the Trust Agreement duly authorizes the Trust Company, acting alone,
to execute and deliver, on behalf of the Trust, each of the Transaction
Documents;

 20
 

(iv)  the Trust Agreement and each other
Transaction Document to which the Trust is a party have been duly authorized,
executed and delivered by the Trust, and the Trust Agreement and each such
other Transaction Document to the extent entered into by the Trust constitutes
a legal, valid and binding obligation of the Trust, enforceable against the
Trust in accordance with the terms thereof. 
The Trust Agreement constitutes the legal, valid and binding obligation
of the Trust Company enforceable against the Trust Company in accordance with
its terms;

(v)  to the knowledge of such counsel, no
litigation, investigation or proceeding of or before any arbitrator, court,
tribunal or governmental authority is pending or threatened by or against the
Trust or the Trust Company (a) with respect to any of the Transaction Documents
or any of the transactions contemplated thereby, or (b) which if determined
adversely against the Trust or the Trust Company, as the case may be,
individually or in the aggregate, would materially and adversely affect the
Trust Estate or the validity of, or the right, power or authority of the Trust
to enter into or perform its obligations under, the Transaction Documents;

(vi)  to the knowledge of such counsel, there exist
no liens affecting the interests of the Trust in and to the Trust Estate
resulting from acts or omissions to act of or claims against the Trust, except
liens created by the Transaction Documents;

(vii)  neither the execution and delivery by the
Trust Company or the Trust, as the case may be, of the Transaction Documents,
nor the fulfillment of or compliance by the Trust Company or the Trust, as the
case may be, with the respective provisions thereof, conflicts with, or results
in a breach of the terms, conditions or provisions of, or constitutes a default
under, or results in a violation of, the charter or by-laws of the Trust
Company, any law of the State of Delaware or any federal law of the United
States of America governing the banking and trust powers of the Trust Company
or, to the best knowledge of such counsel, any agreement, indenture,
instrument, order, judgment or decree to which the Trust Company, the Trust or
any of their respective properties is subject;

(viii)  to the extent that Article 9 of the Delaware
Uniform Commercial Code is applicable (without regard to conflict of laws
principles), and assuming that the security interest in the Trust’s rights in
the Contracts and the proceeds thereof that may be perfected under the UCC
solely by the filing of a financing statement with the Secretary of State of
Delaware (the “Trust Collateral”), has been duly created and has attached, upon
the filing of the Trust Financing Statement with the Secretary of State of
Delaware, the Indenture Trustee will have a perfected security interest in all
right, title and interest of the Trust in the Trust Collateral;

(ix)  under 12 Del. C. § 3805(b), no creditor of
the Certificateholder (including creditors of the Trust Depositor, as the
Certificateholder) shall have

 21
 

any right to
obtain possession of, or otherwise exercise legal or equitable remedies with
respect to, the property of the Trust; and

(x)  the Certificate has been duly authorized,
executed and authenticated by the Owner Trustee on behalf of the Trust and, when
the Certificate has been issued and delivered in accordance with the
instructions of the Trust Depositor, the Certificate will be validly issued and
entitled to the benefits of the Trust Agreement.

(i)                                     The
Underwriters shall have received an opinion addressed to the Underwriters and
the Trust Depositor of Chapman and Cutler LLP,
counsel to The Bank of New York Trust Company, N.A. (the “Bank”), dated the
Closing Date and satisfactory in form and substance to the Underwriters, to the
effect that:

(i)  the Bank is duly organized and validly
existing as a national banking association under the laws of the United States
of America;

(ii)  the Bank has the full corporate power to
accept the office of Indenture Trustee under the Indenture and to enter into
and perform its obligations under the Indenture and the Sale and Servicing
Agreement;

(iii)  the execution and delivery of the Indenture,
the Sale and Servicing Agreement and the performance by the Bank of its
obligations under the Indenture and the Sale and Servicing Agreement have been
duly authorized by all necessary corporate action of the Bank and each has been
duly executed and delivered by the Bank;

(iv)  the Indenture and the Sale and Servicing
Agreement constitute valid and binding obligations of the Bank enforceable
against the Bank in accordance with their terms under the laws of the State of
Illinois and the federal law of the United States;

(v)  the execution and delivery by the Bank of the
Indenture and the Sale and Servicing Agreement do not require any consent,
approval or authorization of, or any registration or filing with, any Illinois
or United States federal governmental authority;

(vi)  each of the Notes has been duly authenticated
by the Bank, as Indenture Trustee;

(vii)  neither the consummation by the Bank of the
transactions contemplated in the Indenture or the Sale and Servicing Agreement
nor the fulfillment of the terms thereof by the Bank will conflict with, result
in a breach or violation of, or constitute a default under, any law or the
charter, bylaws or other organizational documents of the Bank, or the terms of
any indenture or other agreement or instrument and to which the Bank or any of
its subsidiaries is a party or by which it is bound, or any judgment, order or
decree to be applicable to the Bank or any of its subsidiaries of any court,
regulatory body, administrative

 22
 

agency,
governmental body or arbitrator having jurisdiction over the Bank or any of its
subsidiaries;

(viii)  there is no action, suit or proceeding
pending or threatened against the Bank (as Indenture Trustee under the
Indenture or in its individual capacity) before or by any governmental
authority that, if adversely decided, would materially and adversely affect the
ability of the Bank to perform its obligations under the Indenture or the Sale
and Servicing Agreement; and

(ix)  the execution and delivery by the Bank of,
and the performance by the Bank of its obligations under, the Indenture and the
Sale and Servicing Agreement will not subject any of the property or assets of
the Trust, or any portion thereof, to any lien created by or arising under the
Bank that are unrelated to the transactions contemplated in such Agreements.

(j)                                     The
Underwriters shall have received such opinions, addressed to the Underwriters and
dated the Closing Date, as are delivered to the Rating Agencies.

(k)                                  The
Underwriters shall have received an opinion from Winston & Strawn LLP,
counsel for the Trust Depositor, dated the Closing Date and satisfactory in
form and substance to the Underwriters regarding 1) the true-sale of the
Contracts by Harley-Davidson to the Trust Depositor and 2) the first priority
perfected security interest of the Trust and the pledge by the Trust of the
Contracts and other Trust Property to the Indenture Trustee for the benefit of
the Noteholders.

(l)                                     The
Underwriters shall have received an opinion from Winston & Strawn LLP,
counsel for the Trust Depositor, dated the Closing Date and satisfactory in
form and substance to the Underwriters regarding substantive consolidation.

(m)                               The
Underwriters shall have received an opinion from Hale Lane Peek Dennison and
Howard, special Nevada counsel to Eaglemark Savings Bank, dated the Closing
Date and reasonably satisfactory in form and substance to the Underwriters
regarding Eaglemark Savings Bank and related matters.

(n)                                 The
Underwriters shall have received a certificate dated the Closing Date of any of
the Chairman of the Board, the President, the Executive Vice President, any
Vice President, the Treasurer, any Assistant Treasurer, the principal financial
officer or the principal accounting officer of the Trust Depositor in which
such officer shall state that, to the best of his or her knowledge after
reasonable investigation:

(i)  the representations and warranties of the Trust
Depositor contained in this Agreement and the Basic Documents are true and
correct;

 23
 

(ii)  the Trust Depositor has complied with all
agreements and satisfied all conditions on its part to be performed or
satisfied under such agreements at or prior to the Closing Date;

(iii)  since the date of the Preliminary Prospectus,
no material adverse change, or any development involving a prospective material
adverse change, in or affecting particularly the business or properties of the
Trust Depositor has occurred; and

(iv)  no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceedings for that purpose
have been instituted or are contemplated by the Commission.

(o)                                 The
Underwriters shall have received a certificate dated the Closing Date of any of
the Chairman of the Board, the President, the Executive Vice President, any
Vice President, the Treasurer, any Assistant Treasurer, the principal financial
officer or the principal accounting officer of Harley-Davidson in which such
officer shall state that, to the best of his or her knowledge after reasonable
investigation:

(i)  the representations and warranties of
Harley-Davidson contained in this Agreement and the Basic Documents are true
and correct;

(ii)  Harley-Davidson has complied with all
agreements and satisfied all conditions on its part to be performed or
satisfied under such agreements at or prior to the Closing Date;

(iii)  since the date of the most recent financial
information included in the Preliminary Prospectus, no material adverse change,
or any development involving a prospective material adverse change, in or
affecting particularly the business or properties of Harley-Davidson has
occurred; and

(iv)  no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceedings for that purpose
have been instituted or are contemplated by the Commission.

(p)                                 The
Underwriters shall have received evidence satisfactory to them that, on or
before the Closing Date, UCC-1 financing statements have been or are being
filed in the offices of the Secretary of State of the State of Nevada and the
Secretary of State of the State of Delaware reflecting the sale of the
Contracts by Harley-Davidson to the Trust Depositor and of the Contracts and
other Trust Property by the Trust Depositor to the Trust and the pledge by the
Trust of the contracts and other Trust Property to the Indenture Trustee for
the benefit of the Noteholders.

(q)                                 At
or prior to the Time of Sale and at the Closing Date, Ernst & Young LLP
shall have furnished to the Underwriters a letter or letters, dated
respectively as of the date of the Time of Sale and as of the Closing Date,
substantially in the

 24
 

forms of the
drafts to which the Underwriters have previously agreed and otherwise in form
and substance satisfactory to the Underwriters concerning the Time of Sale
Information and the Prospectus.

(r)                                    Subsequent
to the Execution Time or, if earlier, the dates as of which information is
given in the Preliminary Prospectus, there shall not have been any change or
any development involving a prospective change in or affecting the business or
properties of Harley-Davidson or the Trust Depositor the effect of which is, in
the judgment of the Underwriters, so material and adverse as to make it
impractical or inadvisable to market the Offered Securities as contemplated by
the Preliminary Prospectus.

(s)                                  The
Class A-1 Notes shall have been rated “Prime-1” by Moody’s and “A-1+” by
S&P.  The Class A-2, Class A-3 and
Class A-4 Notes shall have been rated “Aaa” by Moody’s and “AAA” by S&P.

(t)                                    The
Class B Notes shall have been rated at least “A” by S&P and “Aa3” by
Moody’s.

(u)                                 The
Class C Notes shall have been rated at least “BBB” by S&P and “Baa2” by
Moody’s.

(v)                                 On
or prior to the Closing Date, the Offered Securities shall have been accepted
for settlement through the facilities of DTC.

(w)                               On
the Closing Date, the Certificate shall have been issued and delivered to the
Trust Depositor.

(x)                                   Prior
to the Closing Date, the Trust Depositor shall have furnished to the
Underwriters such further information, certificates and documents as the
Underwriters may reasonably request, including without limitation, certificates
and opinions in respect of the Swap Agreement and the Swap Counterparty.

If any of the conditions specified in this Section 8
shall not have been fulfilled in all material respects when and as provided in
this Agreement, or if any of the opinions and certificates mentioned above or
elsewhere in this Agreement shall not be in all material respects reasonably
satisfactory in form and substance to the Underwriters, this Agreement and all
obligations of the Underwriters hereunder may be canceled at, or at any time
prior to, the Closing Date by the Underwriters. 
Notice of such cancellation shall be given to the Trust Depositor in
writing or by telephone or telegraph confirmed in writing.

9.                                       Reimbursement
of Expenses.  If the sale of the
Offered Securities provided for herein is not consummated because any condition
to the obligation of the Underwriters set forth in Section 8 hereof is not
satisfied, because of any refusal, inability or failure on the part of
Harley-Davidson or the Trust Depositor to perform any agreement herein or to
comply with any provision hereof other than by reason of a default by the
Underwriters in payment for the Offered Securities on the Closing Date,
Harley-Davidson and the Trust Depositor will reimburse the Underwriters upon
demand for all out-of-pocket expenses (including reasonable fees and

 25
 

disbursements of counsel) that shall have been
incurred by them in connection with the proposed purchase and sale of the
Offered Securities.

10.                                 Indemnification
and Contribution.  (a)  The Trust Depositor and Harley-Davidson,
jointly and severally, agree to indemnify and hold harmless each Underwriter,
the directors, officers, employees and agents of each Underwriter and each
person who controls each Underwriter within the meaning of either the Act or
the Exchange Act against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the Act, the
Exchange Act or other federal or state statutory law or regulation, at common
law or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact contained in the Registration
Statement, the Preliminary Prospectus, the Prospectus, any Trust Free Writing
Prospectus, the Time of Sale Information, the Issuer Information or any
information provided by the Trust Depositor or Harley-Davidson to any
Underwriter or any holder or prospective purchaser of Offered Securities or in
any amendment thereof or supplement thereto, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however, that the Trust
Depositor and Harley-Davidson will not be liable in any such case to the extent
that any such loss, claim, damage or liability arises out of or is based upon
any such untrue statement or alleged untrue statement or omission or alleged
omission made (x) in the Preliminary Prospectus, the Prospectus, any Trust Free
Writing Prospectus or the Time of Sale Information, or in any amendment thereof
or supplement thereto, in reliance upon and in conformity with the Underwriter
Information or (y) in any Derived Information (as defined in Section 11 below)
unless such untrue statement or alleged untrue statement or omission or alleged
omission made in any Derived Information results from an error or omission in
the Preliminary Prospectus, the Prospectus, the Time of Sale Information or any
Issuer Information.

(b)                                 Each
Underwriter, severally and not jointly, agrees to indemnify and hold harmless
the Trust Depositor and Harley-Davidson, their directors, their officers and
each person who controls the Trust Depositor or Harley-Davidson within the
meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Trust Depositor and Harley-Davidson to each
Underwriter, but only with reference to untrue statements or omissions or
alleged untrue statements or omissions made in (x) the Registration Statement,
the Preliminary Prospectus, the Prospectus or the Time of Sale Information or
in any amendment thereof or supplement thereto in reliance upon and in
conformity with the Underwriter Information or (y) any Derived Information; provided, however, that the indemnity with
respect to clause (y) above shall not apply to any untrue statement or alleged
untrue statement or omission or alleged omission made in any Derived
Information that results from an error or omission in (i) the Preliminary
Prospectus, (ii) the Prospectus, (iii) the Time of Sale Information or (iv) any
Issuer Information.  This indemnity
agreement will be in addition to any liability that an Underwriter may
otherwise have.

 26
 

(c)                                  Upon
receipt by an indemnified party under this Section 10 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 10,
promptly notify the indemnifying party in writing of the commencement thereof;
but the failure so to notify the indemnifying party (i) will not relieve it
from liability under paragraph (a) or (b) above unless and to the extent it did
not otherwise learn of such action and such failure results in the forfeiture by
the indemnifying party of substantial rights and defenses and (ii) will not, in
any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above.  The
indemnifying party shall be entitled to appoint counsel of the indemnifying
party’s choice at the indemnifying party’s expense to represent the indemnified
party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and
expenses of any separate counsel retained by the indemnified party or parties
except as set forth below); provided,
however, that such counsel shall be satisfactory to the indemnified
party.  Notwithstanding the indemnifying
party’s election to appoint counsel to represent the indemnified party in an
action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest, (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified
parties and the indemnifying party and the indemnified parties shall have
reasonably concluded that there may be legal defenses available to them and/or
other indemnified parties that are different from or additional to those
available to the indemnifying party, (iii) the indemnifying party shall not
have employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of the institution of
such action or (iv) the indemnifying party shall authorize the indemnified
party to employ separate counsel at the expense of the indemnifying party.  An indemnifying party shall not, without the
prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is
or could have been a party and indemnity could have been sought hereunder by
such indemnified party, unless such settlement (x) does not include a statement
as to, or admission of, fault, culpability or a failure to act by or on behalf
of any such indemnified party, and (y) includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such proceeding.

(d)                                 In
the event that the indemnity provided in paragraph (a) or (b) of this Section
10 is unavailable to or insufficient to hold harmless an indemnified party for
any reason, the Trust Depositor, Harley-Davidson and each Underwriter agree to
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively “Losses”) to which the Trust Depositor,
Harley-Davidson and the several Underwriters may be subject in such proportion
as is appropriate to reflect the relative benefits received by the Trust
Depositor and Harley-Davidson on the one hand and by the several Underwriters
on the other from the offering of the Offered Securities; provided, however, that in no case shall
any Underwriter be responsible for any amount in excess of the purchase
discount or commission applicable to the Offered Securities purchased by such
Underwriter hereunder.  If the allocation
provided by the immediately preceding sentence is unavailable for any reason,
the Trust Depositor, Harley-Davidson and each Underwriter shall contribute in
such proportion as is appropriate to reflect not only such relative

 27
 

benefits but also the relative fault of the Trust
Depositor and Harley-Davidson on the one hand and of the several Underwriters
on the other in connection with the statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations.  Benefits received by the Trust Depositor and
Harley-Davidson shall be deemed to be equal to the total net proceeds from the
offering (before deducting expenses), and benefits received by any Underwriter
shall be deemed to be equal to the total purchase discounts and commissions
received by such Underwriter from the Trust Depositor in connection with the
purchase of the Offered Securities hereunder. 
Relative fault shall be determined by reference to whether any alleged
untrue statement or omission relates to information provided by the Trust
Depositor and Harley-Davidson on the one hand or the several Underwriters on
the other.  The Trust Depositor,
Harley-Davidson and the several Underwriters agree that it would not be just
and equitable if contribution were determined by pro rata allocation or any
other method of allocation that does not take account of the equitable
considerations referred to above. 
Notwithstanding the provisions of this paragraph (d), no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.  For
purposes of this Section 10, each person who controls any Underwriter within
the meaning of either the Act or the Exchange Act and each director, officer,
employee and agent of such Underwriter shall have the same rights to
contribution as such Underwriter, and each person who controls the Trust
Depositor or Harley-Davidson within the meaning of either the Act or the
Exchange Act and each officer and director of the Trust Depositor or
Harley-Davidson shall have the same rights to contribution as the Trust
Depositor or Harley-Davidson, subject in each case to the applicable terms and
conditions of this paragraph (d).

11.                                 Free
Writing Prospectuses.

(a)                                  The
following terms have the specified meanings for purposes of this Agreement:

“Free
Writing Prospectus” means and includes any information relating to the
Offered Securities disseminated by the Trust Depositor or any Underwriter that
constitutes a “free writing prospectus” within the meaning of Rule 405 under
the Act.

“Issuer
Information” means (1) the information contained in any Underwriter Free
Writing Prospectus which information is also included in the Preliminary
Prospectus or the Prospectus (other than Underwriter Information), (2)
information in the Preliminary Prospectus or the Prospectus provided by the
Trust Depositor or Harley-Davidson that is used to calculate or create any
Derived Information and (3) any computer tape or other information in respect of
the Offered Securities, the Contracts or other Trust Property furnished by the
Trust Depositor or Harley-Davidson to any Underwriter.

“Derived
Information” means such written information regarding the Offered
Securities as is disseminated by any Underwriter to a potential investor, which
information is neither (A) Issuer Information nor (B) contained in the
Registration Statement, the Preliminary Prospectus, the Prospectus Supplement,
the Prospectus or any amendment or supplement to any of them, taking into
account information incorporated therein by reference (other than information
incorporated by reference from any

 28
 

information
regarding the Offered Securities that is disseminated by any Underwriter to a
potential investor).

(b)                                 Neither
the Trust Depositor nor any Underwriter shall disseminate or file with the
Commission any information relating to the Offered Securities in reliance on
Rule 167 or 426 under the Act, nor shall the Trust Depositor or any Underwriter
disseminate any Underwriter Free Writing Prospectus (as defined below) “in a
manner reasonably designed to lead to its broad unrestricted dissemination”
within the meaning of Rule 433(d) under the Act.

(c)                                  The
Trust Depositor shall not disseminate to any potential investor any information
relating to the Offered Securities that constitutes a “written communication”
within the meaning of Rule 405 under the Act, other than the Time of Sale
Information and the Prospectus, unless the Trust Depositor has obtained the
prior consent of J.P. Morgan Securities Inc.

(d)                                 Each
Underwriter represents, warrants, covenants and agrees with the Trust Depositor
that, other than the Preliminary Prospectus and the Prospectus, it has not
made, used, prepared, authorized, approved or referred to and will not prepare,
make, use, authorize, approve or refer to any “written communication” (as
defined in Rule 405 under the Act) that constitutes an offer to sell or
solicitation of an offer to buy the Offered Securities, including but not
limited to any “ABS informational and computational materials” as defined in
Item 1101(a) of Regulation AB under the Act; provided, however,
that (i) each Underwriter may prepare and convey one or more “written
communications” (as defined in Rule 405 under the Act) containing no more than
the following: (1) information included in the previously filed Preliminary
Prospectus (including a cdi file based on such information), (2) information
relating to the class, size, rating, price, CUSIP numbers, coupon, yield,
spread, benchmark, pricing prepayment speed and clean up call information,
status and/or legal maturity date of the Offered Securities, any credit
enhancement expected to be provided with respect to the Offered Securities or
the Contracts, any derivatives expected to be entered into in connection with
the Offered Securities or the Contracts, the weighted average life, expected
final payment date, trade date, settlement date and payment window of one or
more classes of Offered Securities, the names of any underwriters for one or
more classes of Offered Securities and the names of any credit enhancement or
derivative providers, (3) the eligibility of the Offered Securities to be
purchased by ERISA plans and (4) syndicate structure and a column or other
entry showing the status of the subscriptions for the Offered Securities (both
for the issuance as a whole and for each Underwriter’s retention) and/or
expected pricing parameters of the Offered Securities (each such written
communication, an “Underwriter Free Writing Prospectus”); (ii) each Underwriter
shall provide the Trust Depositor with a true and accurate copy of each Free
Writing Prospectus conveyed by it of the type referred to in Rule 433(d)(5)(ii)
under the Act no later than the close of business on the date of first use and
in any event not less than one business day prior to the required date of
filing with the Commission; and (iii) each Underwriter is permitted to provide
information customarily included in confirmations of sales of securities and
notices of allocations and information delivered in compliance with Rule 134 of
the Act.

(e)                                  Harley-Davidson
agrees to file with the Commission when required under the Rules and
Regulations the following:

 29
 

(i)  any Free Writing Prospectus that includes
Issuer Information (any such Free Writing Prospectus, a “Trust Free Writing
Prospectus”);

(ii)   subject to the Underwriters’ compliance with
Section 11(d), any Underwriter Free Writing Prospectus at the time required to
be filed; and

(iii)  any Free Writing Prospectus for which the
Trust Depositor or any person acting on its behalf, including, without
limitation, Harley-Davidson, provided, authorized or approved information that
is prepared and published or disseminated by a person unaffiliated with the
Trust Depositor or any other offering participant that is in the business of
publishing, radio or television broadcasting or otherwise disseminating
communications.

(f)                              Notwithstanding
the provisions of Section 11(e), Harley-Davidson will not be required to file
any Free Writing Prospectus that does not contain substantive changes from or
additions to a Free Writing Prospectus previously filed with the Commission.

(g)                           The
Trust Depositor and the Underwriters each agree that any Free Writing
Prospectuses prepared by it will contain a legend substantially similar to the
following legend:

The issuer has
filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. 
Before you invest, you should read the prospectus in that registration
statement and other documents the issuer has filed with the SEC for more
complete information about the issuer and this offering.  You may get these documents for free by
visiting EDGAR on the SEC website at www.sec.gov.  Alternatively, the issuer, any underwriter or
any dealer participating in the offering will arrange to send you the
prospectus if you request it by calling toll-free 1-8[xx-xxx-xxxx].

(h)                           In the
event the Trust Depositor or Harley-Davidson becomes aware that, as of the Time
of Sale, any Time of Sale Information contains or contained any untrue
statement of material fact or omits or omitted to state a material fact
necessary in order to make the statements contained therein (when read in
conjunction with all Time of Sale Information) in light of the circumstances
under which they were made, not misleading (a “Defective Prospectus”),
Harley-Davidson shall promptly notify the Underwriters of such untrue statement
or omission no later than one business day after discovery and Harley-Davidson
shall, if requested by the Underwriters, prepare and deliver to the
Underwriters a Corrected Prospectus.

(i)                               In
disseminating information to prospective investors, each Underwriter has
complied and will continue to comply fully with all applicable Rules and
Regulations, including but not limited to Rules 164 and 433 under the Act and
the requirements thereunder for filing and retention of Free Writing
Prospectuses, including retaining any Free Writing Prospectuses it has used but
which are not required to be filed for the required period.

(j)                               Prior
to entering into any Contract of Sale, each Underwriter shall convey the Time
of Sale Information to the prospective investor.  Each Underwriter shall maintain sufficient
records to document its conveyance of the Time of Sale Information to the
potential

 30
 

investor prior to the
formation of the related Contract of Sale and shall maintain such records as
required by the Rules and Regulations.

(k)                                  If
a Defective Prospectus has been corrected with a Corrected Prospectus, each Underwriter
shall (A) deliver the Corrected Prospectus to each investor with whom it
entered into a Contract of Sale and that received the Defective Prospectus from
it prior to entering into a new Contract of Sale with such investor, (B) notify
such investor that the prior Contract of Sale with the investor, if any, has
been terminated and of the investor’s rights as a result of such agreement and
(C) provide such investor with an opportunity to agree to purchase the Offered
Securities on the terms described in the Corrected Prospectus, in each case as
consistent with the Underwriter’s good faith interpretation of the requirements
of Commission Release No. 33-8591.

12.                                 Defaults
of the Underwriters.  If any
Underwriter defaults in its obligation to purchase the Offered Securities
hereunder on the Closing Date and arrangements satisfactory to the
nondefaulting Underwriters and the Trust Depositor for the purchase of such
Offered Securities by other persons are not made within 36 hours after such
default, this Agreement will terminate without liability on the part of the
nondefaulting Underwriters, Harley-Davidson or the Trust Depositor, except as
provided in Section 15.  Nothing herein
will relieve a defaulting Underwriter from liability for its default.  The term “Underwriter” includes any person
substituted for an Underwriter under this Section.

In the event of any such default that does not result
in a termination of this Agreement, any of the nondefaulting Underwriters or
the Trust Depositor shall have the right to postpone the Closing Date for a
period not exceeding seven days in order to effect any required change in the
Registration Statement or Prospectus or in any other documents or arrangements.

13.                                 Termination.  This Agreement shall be subject to termination
in the absolute discretion of the Underwriters, by notice given to the Trust
Depositor prior to delivery of and payment for the Offered Securities, if prior
to such time (i) trading in securities generally on the New York Stock Exchange
or the Nasdaq Stock Market’s National Market shall have been suspended or
limited or minimum prices shall have been established on either such exchange,
(ii) a banking moratorium shall have been declared either by federal or New
York State authorities or (iii) there shall have occurred any outbreak or
escalation of hostilities, declaration by the United States of a national
emergency or war, or other calamity or crisis the effect of which on financial
markets is such as to make it, in the judgment of the Underwriters, impracticable
or inadvisable to proceed with the offering or delivery of the Offered
Securities as contemplated by the Prospectus.

14.                                 No
Bankruptcy Petition.  Each
Underwriter covenants and agrees that, prior to the date which is one year and
one day after the payment in full of all securities issued by the Trust
Depositor or by a trust for which the Trust Depositor was the depositor, which
securities were rated by any nationally recognized statistical rating
organization, it will not institute against, or join any other Person in
instituting against, the Trust Depositor any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other proceedings under
any federal or state bankruptcy or similar law.

 31
 

15.                                 Representations
and Indemnities to Survive.  The
respective agreements, representations, warranties, indemnities and other
statements of the Trust Depositor and Harley-Davidson and their respective
officers and of the several Underwriters set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation
made by or on behalf of any Underwriter, the Trust Depositor or Harley-Davidson
or any of the officers, directors or controlling persons referred to in Section
13 hereof, and will survive delivery of and payment for the Offered
Securities.  The provisions of Sections
9, 10 and 16 hereof shall survive the termination or cancellation of this
Agreement.

16.                                 Relationship
Among Parties.  Harley-Davidson and
the Trust Depositor acknowledge and agree that the Underwriters are acting
solely in the capacity of an arm’s length contractual counterparty to
Harley-Davidson and the Trust Depositor with respect to the offering of the
Offered Securities contemplated hereby (including in connection with determining
the terms of the offering) and not as a financial advisor or a fiduciary to, or
an agent of, Harley-Davidson, the Trust Depositor or any other person.  Additionally, none of the Underwriters are
advising Harley-Davidson, the Trust Depositor or any other person as to any
legal, tax, investment, accounting or regulatory matters in any
jurisdiction.  Harley-Davidson and the
Trust Depositor shall consult with their own advisors concerning such matters
and shall be responsible for making their own independent investigation and
appraisal of the transactions contemplated hereby, and the Underwriters shall
have no responsibility or liability to Harley-Davidson or the Trust Depositor
with respect to any legal, tax, investment, accounting or regulatory matters.
Any review by the Underwriters of Harley-Davidson, the Trust Depositor, the
transactions contemplated hereby or other matters relating to such transactions
will be performed solely for the benefit of the Underwriters and shall not be
on behalf of Harley-Davidson or the Trust Depositor.

17.                                 Notices.  All communications hereunder will be in
writing and effective only on receipt, and, if sent to the Underwriters, will
be mailed, delivered or telegraphed and confirmed to them c/o J.P. Morgan
Securities Inc., 270 Park Avenue, 10th Floor, New York, NY 10017, Attention:
John Cho; or if sent to the Trust Depositor, will be mailed, delivered or
telegraphed and confirmed to it at Harley-Davidson Customer Funding Corp., 3850
Arrowhead Drive, Carson City, Nevada 89706, Attention:  President; or if sent to Harley-Davidson,
will be mailed, delivered, telegraphed and confirmed to it at Harley-Davidson
Credit Corp., 3850 Arrowhead Drive, Carson City, Nevada 89706, Attention: President.

18.                                 Successors.  This Agreement will inure to the benefit of
and be binding upon the parties hereto and their respective successors and the
officers and directors and controlling persons referred to in Section 10
hereof, and, except as expressly set forth herein, no other person will have any
right or obligation hereunder.

19.                                 Applicable
Law.  This Agreement will be governed
by and construed in accordance with the laws of the State of New York.

20.                                 Business
Day.  For purposes of this Agreement,
“business day” means each Monday, Tuesday, Wednesday, Thursday and Friday that
is not a day on which national banking associations in the cities of Chicago,
Illinois or New York, New York are authorized or obligated by law, executive
order or regulation to close.

 32
 

21.                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original, but all such
counterparts will together constitute one and the same agreement.

 33

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this Agreement and your acceptance shall represent
a binding agreement among the Trust Depositor, Harley-Davidson and the several
Underwriters.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING

  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence G.
  Hund

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Lawrence G. Hund

  
	
   

  	
   

  	
  Title:

  	
  Vice President,
  Chief Financial Officer &

  
	
   

  	
   

  	
   

  	
  Assistant
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CREDIT CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence G.
  Hund

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Lawrence G. Hund

  
	
   

  	
   

  	
  Title:

  	
  Vice President,
  Chief Financial Officer &

  
	
   

  	
   

  	
   

  	
  Assistant
  Secretary

  
					

 

The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.

J.P. MORGAN
SECURITIES INC.

CITIGROUP GLOBAL
MARKETS INC.

ABN AMRO
INCORPORATED

BNP PARIBAS
SECURITIES CORP.

WACHOVIA CAPITAL MARKETS, LLC

By: J.P. MORGAN SECURITIES INC.

	
  By:

  	
  /s/ John Cho

  	
   

  
	
   

  	
  Name:

  	
  John Cho

  
	
   

  	
  Title:

  	
  Managing
  Director

  
				

 

HDMOT
2007-3 Underwriting Agreement

SCHEDULE I

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2007-3

	
  OFFERED SECURITY

  	
   

  	
  PRINCIPAL AMOUNT

  	
   

  	
  PRICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-1 Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.900000

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.900000

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.900000

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.900000

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.900000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-2a Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  13,000,000

  	
   

  	
  99.854939

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  13,000,000

  	
   

  	
  99.854939

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  13,000,000

  	
   

  	
  99.854939

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  13,000,000

  	
   

  	
  99.854939

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  13,000,000

  	
   

  	
  99.854939

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-2b Notes

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.860000

  	
  %

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.860000

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.860000

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.860000

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.860000

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  24,000,000

  	
   

  	
  99.860000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-3 Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  46,000,000

  	
   

  	
  99.830000

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  46,000,000

  	
   

  	
  99.830000

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  46,000,000

  	
   

  	
  99.830000

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  46,000,000

  	
   

  	
  99.830000

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  46,000,000

  	
   

  	
  99.830000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-4 Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  34,932,000

  	
   

  	
  99.779082

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  34,932,000

  	
   

  	
  99.779082

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  34,932,000

  	
   

  	
  99.779082

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  34,932,000

  	
   

  	
  99.779082

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  34,932,000

  	
   

  	
  99.779082

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class B Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  25,416,000

  	
   

  	
  99.689277

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  25,416,000

  	
   

  	
  99.689277

  	
  %

  

 

 

	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  0

  	
   

  	
  99.689277

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  0

  	
   

  	
  99.689277

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  0

  	
   

  	
  99.689277

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class C Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  10,754,000

  	
   

  	
  99.620091

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  10,754,000

  	
   

  	
  99.620091

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  0

  	
   

  	
  99.620091

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  0

  	
   

  	
  99.620091

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  0

  	
   

  	
  99.620091

  	
  %

  

 

 36Exhibit 10.5

(Multicurrency—Cross Border)

ISDAÒ

International Swap
Dealers Association, Inc.

MASTER
AGREEMENT

dated as of August
30, 2007

	
  

  

  JPMorgan Chase Bank, N.A.

  	
  

  and

  	
  Harley-Davidson
  Motorcycle 

  Trust 2007-3 

  (“Counterparty”)

  
	
  (“Party A”)

  	
   

  	
  (“Party B”)

  

 

have entered and/or
anticipate entering into one or more transactions (each a “Transaction”) that
are or will be governed by this Master Agreement, which includes the schedule
(the “Schedule”), and the documents and other confirming evidence (each a “Confirmation”)
exchanged between the parties confirming those Transactions.

Accordingly, the parties
agree as follows:—

1.                                      Interpretation

(a)                                  Definitions. The terms defined in
Section 14 and in the Schedule will have the meanings therein specified for the
purpose of this Master Agreement.

(b)                                 Inconsistency. In the event of any
inconsistency between the provisions of the Schedule and the other provisions
of this Master Agreement, the Schedule will prevail.  In the event of any inconsistency between the
provisions of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant
Transaction.

(c)                                  Single Agreement. All Transactions
are entered into in reliance on the fact that this Master Agreement and all
Confirmations form a single agreement between the parties (collectively
referred to as this “Agreement”), and the parties would not otherwise enter
into any Transactions.

2.                                      Obligations

(a)                                  General Conditions.

(i)             Each party will make
each payment or delivery specified in each Confirmation to be made by it,
subject to the other provisions of this
Agreement.

(ii)          Payments under this
Agreement will be made on the due date for value on that date in the place of
the account specified in the relevant Confirmation or otherwise pursuant to
this Agreement, in freely transferable funds and in the manner customary for
payments in the required currency. Where settlement is by delivery (that is,
other than by payment), such delivery will be made for receipt on the due date
in the manner customary for the relevant obligation unless otherwise specified
in the relevant Confirmation or elsewhere in this Agreement.

(iii)       Each obligation of each
party under Section 2(a)(i) is subject to (1) the condition precedent that no
Event of Default or Potential Event of Default with respect to the other party
has occurred and is continuing, (2) the condition precedent that no Early
Termination Date in respect of the relevant Transaction has occurred or been
effectively designated and (3) each other applicable condition precedent
specified in this Agreement.

Copyright © 1992
by International Swap Dealers Association, Inc.

(b)                                 Change of Account.  Either party may
change its account for receiving a payment or delivery by giving notice to the
other party at least five Local Business Days prior to the scheduled date for
the payment or delivery to which such change applies unless such other party
gives timely notice of a reasonable objection to such change.

(c)                                  Netting.  If on any date amounts would otherwise be
payable:—

(i)                                     in
the same currency; and

(ii)                                  in
respect of the same Transaction,

by each party to the
other, then, on such date, each party’s obligation to make payment of any such
amount will be automatically satisfied and discharged and, if the aggregate
amount that would otherwise have been payable by one party exceeds the
aggregate amount that would otherwise have been payable by the other party,
replaced by an obligation upon the party by whom the larger aggregate amount
would have been payable to pay to the other party the excess of the larger
aggregate amount over the smaller aggregate amount.

The parties may elect in
respect of two or more Transactions that a net amount will be determined in
respect of all amounts payable on the same date in the same currency in respect
of such Transactions, regardless of whether such amounts are payable in respect
of the same Transaction.  The election
may be made in the Schedule or a Confirmation by specifying that subparagraph
(ii) above will not apply to the Transactions identified as being subject to
the election, together with the starting date (in which case subparagraph (ii)
above will not, or will cease to, apply to such Transactions from such date).  This election may be made separately for
different groups of Transactions and will apply separately to each pairing of
Offices through which the parties make and receive payments or deliveries.

(d)                                 Deduction or Withholding for Tax.

(i)                                     Gross-Up.  All payments under this Agreement will be
made without any deduction or withholding for or on account of any Tax unless
such deduction or withholding is required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, then in effect.  If a party is so required to deduct or
withhold, then that party (“X”) will:—

(1)          promptly
notify the other party (“Y”) of such requirement;

(2)          pay
to the relevant authorities the full amount required to be deducted or withheld
(including the full amount required to be deducted or withheld from any
additional amount paid by X to Y under this Section 2(d)) promptly upon
the earlier of determining that such deduction or withholding is required or
receiving notice that such amount has been assessed against Y;

(3)          promptly
forward to Y an official receipt (or a certified copy), or other documentation
reasonably acceptable to Y, evidencing such payment to such authorities; and

(4)          if
such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
Y is otherwise entitled under this Agreement, such additional amount as is
necessary to ensure that the net amount actually received by Y (free and clear
of Indemnifiable Taxes, whether assessed against X or Y) will equal the full
amount Y would have received had no such deduction or withholding been
required.  However, X will not be
required to pay any additional amount to Y to the extent that it would not be
required to be paid but for:—

(A)            the failure by Y to
comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d); or

(B)              the failure of a
representation made by Y pursuant to Section 3(f) to be accurate and true
unless such failure would not have occurred but for (I) any action taken by a
taxing authority, or brought in a court of competent jurisdiction, on or after
the date on which a Transaction is entered into (regardless of whether such
action is taken or brought with respect to a party to this Agreement) or (II) a
Change in Tax Law.

ISDA ® 1992

(ii)                                  Liability.  If:—

(1)          X
is required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect
of which X would not be required to pay an additional amount to Y under Section
2(d)(i)(4);

(2)          X
does not so deduct or withhold; and

(3)          a
liability resulting from such Tax is assessed directly against X,

then, except to the
extent Y has satisfied or then satisfies the liability resulting from such Tax,
Y will promptly pay to X the amount of such liability (including any related
liability for interest, but including any related liability for penalties only
if Y has failed to comply with or perform any agreement contained in Section
4(a)(i), 4(a)(iii) or 4(d)).

(e)                                  Default Interest; Other Amounts.  Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party that defaults in the performance of any payment obligation
will, to the extent permitted by law and subject to Section 6(c), be required
to pay interest (before as well as after judgment) on the overdue amount to the
other party on demand in the same currency as such overdue amount, for the
period from (and including) the original due date for payment to (but
excluding) the date of actual payment, at the Default Rate.  Such interest will be calculated on the basis
of daily compounding and the actual number of days elapsed.  If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party defaults in the performance of any obligation required to
be settled by delivery, it will compensate the other party on demand if and to
the extent provided for in the relevant Confirmation or elsewhere in this
Agreement.

3.                                      Representations

Each party represents to
the other party (which representations will be deemed to be repeated by each
party on each date on which a Transaction is entered into and, in the case of
the representations in Section 3(f), at all times until the termination of this
Agreement) that:—

(a)                                  Basic Representations.

(i)                                     Status.  It is duly organised and validly existing
under the laws of the jurisdiction of its organisation or incorporation and, if
relevant under such laws, in good standing;

(ii)                                  Powers.  It has the power to execute this Agreement
and any other documentation relating to this Agreement to which it is a party,
to deliver this Agreement and any other documentation relating to this
Agreement that it is required by this Agreement to deliver and to perform its
obligations under this Agreement and any obligations it has under any Credit
Support Document to which it is a party and has taken all necessary action to
authorise such execution, delivery and performance;

(iii)                               No
Violation or Conflict. 
Such execution, delivery and performance do not violate or conflict with
any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it
or any of its assets or any contractual restriction binding on or affecting it
or any of its assets;

(iv)                              Consents.  All governmental and other consents that are
required to have been obtained by it with respect to this Agreement or any
Credit Support Document to which it is a party have been obtained and are in
full force and effect and all conditions of any such consents have been
complied with; and

(v)                                 Obligations Binding.  Its obligations under this Agreement and any
Credit Support Document to which it is a party constitute its legal, valid and
binding obligations, enforceable in accordance with their respective terms
(subject to applicable bankruptcy, reorganisation, insolvency, moratorium or
similar laws affecting creditors’ rights generally and subject, as to
enforceability, to equitable principles of general application (regardless of
whether enforcement is sought in a proceeding in equity or at law)).

(b)                                 Absence of Certain Events.  No Event of Default or Potential Event of
Default or, to its knowledge, Termination Event with respect to it has occurred
and is continuing and no such event or circumstance would occur as a result of
its entering into or performing its obligations under this Agreement or any
Credit Support Document to which it is a party.

(c)                                  Absence of Litigation.  There is not pending or, to its knowledge,
threatened against it or any of its Affiliates any action, suit or proceeding
at law or in equity or before any court, tribunal, governmental body, agency or
official or any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

(d)                                 Accuracy of Specified Information.  All applicable information that is furnished
in writing by or on behalf of it to the other party and is identified for the
purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

(e)                                  Payer Tax Representation.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(e) is accurate and true.

(f)                                    Payee Tax Representations.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(f) is accurate and true.

4.                                      Agreements

Each party agrees with
the other that, so long as either party has or may have any obligation under
this Agreement or under any Credit Support Document to which it is a party:—

(a)                                  Furnish Specified Information.  It will deliver to the other party or, in
certain cases under subparagraph (iii) below, to such government or taxing
authority as the other party reasonably directs:

(i)                   any
forms, documents or certificates relating to taxation specified in the Schedule
or any Confirmation;

(ii)                any
other documents specified in the Schedule or any Confirmation; and

(iii)             upon reasonable demand by such other
party, any form or document that may be required or reasonably requested in
writing in order to allow such other party or its Credit Support Provider to
make a payment under this Agreement or any applicable Credit Support Document
without any deduction or withholding for or on account of any Tax or with such
deduction or withholding at a reduced rate (so long as the completion,
execution or submission of such form or document would not materially prejudice
the legal or commercial position of the party in receipt of such demand), with
any such form or document to be accurate and completed in a manner reasonably
satisfactory to such other party and to be executed and to be delivered with
any reasonably required certification,

in each case by the date
specified in the Schedule or such Confirmation or, if none is specified, as
soon as reasonably practicable.

(b)                                 Maintain Authorisations.  It will use all reasonable efforts to
maintain in full force and effect all consents of any governmental or other
authority that are required to be obtained by it with respect to this Agreement
or any Credit Support Document to which it is a party and will use all
reasonable efforts to obtain any that may become necessary in the future.

(c)                                  Comply with Laws.  It will comply in all material respects with
all applicable laws and orders to which it may be subject if failure so to
comply would materially impair its ability to perform its obligations under
this Agreement or any Credit Support Document to which it is a party.

(d)                                 Tax Agreement.  It will give notice of any failure of a
representation made by it under Section 3(f) to be accurate and true promptly
upon learning of such failure.

(e)                                  Payment of Stamp Tax.  Subject to Section 11, it will pay any Stamp
Tax levied or imposed upon it or in respect of its execution or performance of
this Agreement by a jurisdiction in which it is incorporated, organised,
managed and controlled, or considered to have its seat, or in which a branch or
office through 

which it is acting for
the purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will
indemnify the other party against any Stamp Tax levied or imposed upon the
other party or in respect of the other party’s execution or performance of this
Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax
Jurisdiction with respect to the other party.

5.                                      Events
of Default and Termination Events

(a)                                  Events of Default.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any of the following events constitutes an
event of default (an “Event of Default”) with respect to such party:—

(i)             Failure
to Pay or Deliver. 
Failure by the party to make, when due, any payment under this Agreement
or delivery under Section 2(a)(i) or 2(e) required to be made by it if such
failure is not remedied on or before the third Local Business Day after notice
of such failure is given to the party;

(ii)          Breach
of Agreement.  Failure by
the party to comply with or perform any agreement or obligation (other than an
obligation to make any payment under this Agreement or delivery under Section
2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or
obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or
performed by the party in accordance with this Agreement if such failure is not
remedied on or before the thirtieth day after notice of such failure is given
to the party;

(iii)       Credit
Support Default.

(1)          Failure by the party or
any Credit Support Provider of such party to comply with or perform any
agreement or obligation to be complied with or performed by it in accordance
with any Credit Support Document if such failure is continuing after any
applicable grace period has elapsed;

(2)          the expiration or
termination of such Credit Support Document or the failing or ceasing of such
Credit Support Document to be in full force and effect for the purpose of this
Agreement (in either case other than in accordance with its terms) prior to the
satisfaction of all obligations of such party under each Transaction to which
such Credit Support Document relates without the written consent of the other
party; or

(3)          the
party or such Credit Support Provider disaffirms, disclaims, repudiates or
rejects, in whole or in part, or challenges the validity of, such Credit
Support Document;

(iv)      Misrepresentation.  A representation (other than a representation
under Section 3(e) or (f)) made or repeated or deemed to have been made or
repeated by the party or any Credit Support Provider of such party in this
Agreement or any Credit Support Document proves to have been incorrect or
misleading in any material respect when made or repeated or deemed to have been
made or repeated;

(v)         Default
under Specified Transaction. 
The party, any Credit Support Provider of such party or any applicable
Specified Entity of such party (1) defaults under a Specified Transaction and,
after giving effect to any applicable notice requirement or grace period, there
occurs a liquidation of, an acceleration of obligations under, or an early termination
of, that Specified Transaction, (2) defaults, after giving effect to any
applicable notice requirement or grace period, in making any payment or
delivery due on the last payment, delivery or exchange date of, or any payment
on early termination of, a Specified Transaction (or such default continues for
at least three Local Business Days if there is no applicable notice requirement
or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in whole
or in part, a Specified Transaction (or such action is taken by any person or
entity appointed or empowered to operate it or act on its behalf);

(vi)      Cross
Default.  If “Cross
Default” is specified in the Schedule as applying to the party, the occurrence
or existence of (1) a default, event of default or other similar condition or
event (however

described) in respect of such party, any Credit Support Provider of
such party or any applicable Specified Entity of such party under one or more
agreements or instruments relating to Specified Indebtedness of any of them
(individually or collectively) in an aggregate amount of not less than the
applicable Threshold Amount (as specified in the Schedule) which has resulted
in such Specified Indebtedness becoming, or becoming capable at such time of
being declared, due and payable under such agreements or instruments, before it
would otherwise have been due and payable or (2) a default by such party, such
Credit Support Provider or such Specified Entity (individually or collectively)
in making one or more payments on the due date thereof in an aggregate amount
of not less than the applicable Threshold Amount under such agreements or
instruments (after giving effect to any applicable notice requirement or grace
period);

(vii)   Bankruptcy.  The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party:—

(1)    is
dissolved (other than pursuant to a consolidation, amalgamation or merger); (2)
becomes insolvent or is unable to pay its debts or fails or admits in writing
its inability generally to pay its debts as they become due; (3) makes a
general assignment, arrangement or composition with or for the benefit of its
creditors; (4) institutes or has instituted against it a proceeding seeking a
judgment of insolvency or bankruptcy or any other relief under any bankruptcy
or insolvency law or other similar law affecting creditors’ rights, or a
petition is presented for its winding-up or liquidation, and, in the case of
any such proceeding or petition instituted or presented against it, such
proceeding or petition (A) results in a judgment of insolvency or bankruptcy or
the entry of an order for relief or the making of an order for its winding-up
or liquidation or (B) is not dismissed, discharged, stayed or restrained in
each case within 30 days of the institution or presentation thereof; (5) has a
resolution passed for its winding-up, official management or liquidation (other
than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes
subject to the appointment of an administrator, provisional liquidator,
conservator, receiver, trustee, custodian or other similar official for it or
for all or substantially all its assets; (7) has a secured party take
possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured party maintains
possession, or any such process is not dismissed, discharged, stayed or
restrained, in each case within 30 days thereafter; (8) causes or is subject to
any event with respect to it which, under the applicable laws of any
jurisdiction, has an analogous effect to any of the events specified in clauses
(1) to (7) (inclusive); or (9) takes any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the
foregoing acts; or

(viii)      Merger
Without Assumption.  The
party or any Credit Support Provider of such party consolidates or amalgamates
with, or merges with or into, or transfers all or substantially all its assets
to, another entity and, at the time of such consolidation, amalgamation, merger
or transfer:—

(1)          the resulting, surviving
or transferee entity fails to assume all the obligations of such party or such
Credit Support Provider under this Agreement or any Credit Support Document to
which it or its predecessor was a party by operation of law or pursuant to an
agreement reasonably satisfactory to the other party to this Agreement; or

(2)          the benefits of any
Credit Support Document fail to extend (without the consent of the other party)
to the performance by such resulting, surviving or transferee entity of its
obligations under this Agreement.

(b)                                 Termination Events.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any event specified below constitutes an
Illegality if the event is specified in (i) below, a Tax Event if the event is
specified in (ii) below or a Tax Event Upon Merger if the event is specified in
(iii) below, and, if specified to be applicable, a Credit Event

Upon Merger if the event
is specified pursuant to (iv) below or an Additional Termination Event if the
event is specified pursuant to (v) below:—

(i)                                     Illegality.  Due to the adoption of, or any change in, any
applicable law after the date on which a Transaction is entered into, or due to
the promulgation of, or any change in, the interpretation by any court,
tribunal or regulatory authority with competent jurisdiction of any applicable
law after such date, it becomes unlawful (other than as a result of a breach by
the party of Section 4(b)) for such party (which will be the Affected Party):—

(1)          to
perform any absolute or contingent obligation to make a payment or delivery or
to receive a payment or delivery in respect of such Transaction or to comply
with any other material provision of this Agreement relating to such
Transaction; or

(2)          to
perform, or for any Credit Support Provider of such party to perform, any
contingent or other obligation which the party (or such Credit Support
Provider) has under any Credit Support Document relating to such Transaction;

(ii)                                  Tax Event.  Due to (x) any action taken by a taxing
authority, or brought in a court of competent jurisdiction, on or after the
date on which a Transaction is entered into (regardless of whether such action
is taken or brought with respect to a party to this Agreement) or (y) a Change
in Tax Law, the party (which will be the Affected Party) will, or there is a
substantial likelihood that it will, on the next succeeding Scheduled Payment
Date (1) be required to pay to the other party an additional amount in respect
of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an
amount is required to be deducted or withheld for or on account of a Tax
(except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no
additional amount is required to be paid in respect of such Tax under Section
2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B));

(iii)                               Tax
Event Upon Merger.  The
party (the “Burdened Party”) on the next succeeding Scheduled Payment Date will
either (1) be required to pay an additional amount in respect of an
Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under
Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount
has been deducted or withheld for or on account of any Indemnifiable Tax in
respect of which the other party is not required to pay an additional amount
(other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a
result of a party consolidating or amalgamating with, or merging with or into,
or transferring all or substantially all its assets to, another entity (which
will be the Affected Party) where such action does not constitute an event
described in Section 5(a)(viii);

(iv)                              Credit Event Upon Merger.  If “Credit Event Upon Merger” is specified in
the Schedule as applying to the party, such party (“X”), any Credit Support
Provider of X or any applicable Specified Entity of X consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all
its assets to, another entity and such action does not constitute an event
described in Section 5(a)(viii) but the creditworthiness of the resulting,
surviving or transferee entity is materially weaker than that of X, such Credit
Support Provider or such Specified Entity, as the case may be, immediately
prior to such action (and, in such event, X or its successor or transferee, as
appropriate, will be the Affected Party); or

(v)                                 Additional Termination Event.  If any “Additional Termination Event” is
specified in the Schedule or any Confirmation as applying, the occurrence of
such event (and, in such event, the Affected Party or Affected Parties shall be
as specified for such Additional Termination Event in the Schedule or such
Confirmation).

(c)                                  Event of Default and Illegality.  If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an
Event of Default.

6.                                      Early
Termination

(a)                                  Right to Terminate Following Event of Default.  If at any time an Event of Default with
respect to a party (the “Defaulting Party”) has occurred and is then
continuing, the other party (the “Non-defaulting Party”) may, by not more than
20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective as
an Early Termination Date in respect of all outstanding Transactions.  If, however, “Automatic Early Termination” is
specified in the Schedule as applying to a party, then an Early Termination
Date in respect of all outstanding Transactions will occur immediately upon the
occurrence with respect to such party of an Event of Default specified in
Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8),
and as of the time immediately preceding the institution of the relevant
proceeding or the presentation of the relevant petition upon the occurrence
with respect to such party of an Event of Default specified in Section 5(a)(vii)(4)
or, to the extent analogous thereto, (8).

(b)                                 Right to Terminate Following Termination Event.

(i)                                     Notice.  If a Termination Event occurs, an Affected
Party will, promptly upon becoming aware of it, notify the other party,
specifying the nature of that Termination Event and each Affected Transaction
and will also give such other information about that Termination Event as the
other party may reasonably require.

(ii)                                  Transfer to Avoid Termination Event.  If either an Illegality under Section 5(b)(i)(1)
or a Tax Event occurs and there is only one Affected Party, or if a Tax Event
Upon Merger occurs and the Burdened Party is the Affected Party, the Affected
Party will, as a condition to its right to designate an Early Termination Date
under Section 6(b)(iv), use all reasonable efforts (which will not require such
party to incur a loss, excluding immaterial, incidental expenses) to transfer
within 20 days after it gives notice under Section 6(b)(i) all its rights and
obligations under this Agreement in respect of the Affected Transactions to
another of its Offices or Affiliates so that such Termination Event ceases to
exist.

If the Affected Party is
not able to make such a transfer it will give notice to the other party to that
effect within such 20 day period, whereupon the other party may effect such a
transfer within 30 days after the notice is given under Section 6(b)(i).

Any such transfer by a
party under this Section 6(b)(ii) will be subject to and conditional upon the
prior written consent of the other party, which consent will not be withheld if
such other party’s policies in effect at such time would permit it to enter
into transactions with the transferee on the terms proposed.

(iii)                               Two
Affected Parties.  If an
Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there are two
Affected Parties, each party will use all reasonable efforts to reach agreement
within 30 days after notice thereof is given under Section 6(b)(i) on action to
avoid that Termination Event.

(iv)                              Right to Terminate.  If:—

(1)          a
transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii),
as the case may be, has not been effected with respect to all Affected
Transactions within 30 days after an Affected Party gives notice under Section
6(b)(i); or

(2)          an
Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an
Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the
Burdened Party is not the Affected Party,

either party in the case
of an Illegality, the Burdened Party in the case of a Tax Event Upon Merger,
any Affected Party in the case of a Tax Event or an Additional Termination
Event if there is more than one Affected Party, or the party which is not the
Affected Party in the case of a Credit Event Upon Merger or an Additional
Termination Event if there is only one Affected Party may, by not more than 20
days notice to the other party and provided that the relevant Termination Event
is then

continuing, designate a
day not earlier than the day such notice is effective as an Early Termination
Date in respect of all Affected Transactions.

(c)                                  Effect of Designation.

(i)                                     If
notice designating an Early Termination Date is given under Section 6(a)
or (b), the Early Termination Date will occur on the date so designated,
whether or not the relevant Event of Default or Termination Event is then
continuing.

(ii)                                  Upon
the occurrence or effective designation of an Early Termination Date, no
further payments or deliveries under Section 2(a)(i) or 2(e) in respect of the
Terminated Transactions will be required to be made, but without prejudice to
the other provisions of this Agreement. 
The amount, if any, payable in respect of an Early Termination Date
shall be determined pursuant to Section 6(e).

(d)                                 Calculations.

(i)                                     Statement.  On or as soon as reasonably practicable
following the occurrence of an Early Termination Date, each party will make the
calculations on its part, if any, contemplated by Section 6(e) and will provide
to the other party a statement (1) showing, in reasonable detail, such
calculations (including all relevant quotations and specifying any amount
payable under Section 6(e)) and (2) giving details of the relevant account to
which any amount payable to it is to be paid. 
In the absence of written confirmation from the source of a quotation
obtained in determining a Market Quotation, the records of the party obtaining
such quotation will be conclusive evidence of the existence and accuracy of
such quotation.

(ii)                                  Payment Date.  An amount calculated as being due in respect
of any Early Termination Date under Section 6(e) will be payable on the day
that notice of the amount payable is effective (in the case of an Early
Termination Date which is designated or occurs as a result of an Event of
Default) and on the day which is two Local Business Days after the day on which
notice of the amount payable is effective (in the case of an Early Termination
Date which is designated as a result of a Termination Event).  Such amount will be paid together with (to
the extent permitted under applicable law) interest thereon (before as well as
after judgment) in the Termination Currency, from (and including) the relevant
Early Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate.  Such interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed.

(e)                                  Payments on Early Termination.  If an Early Termination Date occurs, the
following provisions shall apply based on the parties’ election in the Schedule
of a payment measure, either “Market Quotation” or “Loss”, and a payment
method, either the “First Method” or the “Second Method”.  If the parties fail to designate a payment
measure or payment method in the Schedule, it will be deemed that “Market
Quotation” or the “Second Method”, as the case may be, shall apply.  The amount, if any, payable in respect of an
Early Termination Date and determined pursuant to this Section will be subject
to any Set-off.

(i)                                     Events of Default.  If the Early Termination Date results from an
Event of Default:—

(1)          First Method and Market Quotation.  If the First Method and Market Quotation
apply, the Defaulting Party will pay to the Non-defaulting Party the excess, if
a positive number, of (A) the sum of the Settlement Amount (determined by the
Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid
Amounts owing to the Defaulting Party.

(2)          First Method and Loss. 
If the First Method and Loss apply, the Defaulting Party will pay to the
Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss in
respect of this Agreement.

(3)          Second Method and Market Quotation.  If the Second Method and Market Quotation
apply, an amount will be payable equal to (A) the sum of the Settlement Amount
(determined by the

Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid
Amounts owing to the Defaulting Party. 
If that amount is a positive number, the Defaulting Party will pay it to
the Non-defaulting Party; if it is a negative number, the Non-defaulting Party
will pay the absolute value of that amount to the Defaulting Party.

(4)          Second Method and Loss. 
If the Second Method and Loss apply, an amount will be payable equal to
the Non-defaulting Party’s Loss in respect of this Agreement.  If that amount is a positive number, the
Defaulting Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that amount to
the Defaulting Party.

(ii)                                  Termination Events.  If the Early Termination Date results from a
Termination Event:—

(1)          One Affected Party. 
If there is one Affected Party, the amount payable will be determined in
accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section
6(e)(i)(4), if Loss applies, except that, in either case, references to the
Defaulting Party and to the Non-defaulting Party will be deemed to be
references to the Affected Party and the party which is not the Affected Party,
respectively, and, if Loss applies and fewer than all the Transactions are
being terminated, Loss shall be calculated in respect of all Terminated
Transactions.

(2)          Two Affected Parties. 
If there are two Affected Parties:—

(A)                                                      if
Market Quotation applies, each party will determine a Settlement Amount in
respect of the Terminated Transactions, and an amount will be payable equal to
(I) the sum of (a) one-half of the difference between the Settlement Amount of
the party with the higher Settlement Amount (“X”) and the Settlement Amount of
the party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination
Currency Equivalent of the Unpaid Amounts owing to Y; and

(B)                                                        if
Loss applies, each party will determine its Loss in respect of this Agreement
(or, if fewer than all the Transactions are being terminated, in respect of all
Terminated Transactions) and an amount will be payable equal to one-half of the
difference between the Loss of the party with the higher Loss (“X”) and the
Loss of the party with the lower Loss (“Y”).

If the amount payable is a positive number, Y will pay it to X; if it
is a negative number, X will pay the absolute value of that amount to Y.

(iii)       Adjustment for Bankruptcy.  In circumstances where an Early Termination
Date occurs because “Automatic Early Termination” applies in respect of a
party, the amount determined under this Section 6(e) will be subject to such
adjustments as are appropriate and permitted by law to reflect any payments or
deliveries made by one party to the other under this Agreement (and retained by
such other party) during the period from the relevant Early Termination Date to
the date for payment determined under Section 6(d)(ii).

(iv)       Pre-Estimate.  The parties agree that if Market Quotation
applies an amount recoverable under this Section 6(e) is a reasonable
pre-estimate of loss and not a penalty. 
Such amount is payable for the loss of bargain and the loss of
protection against future risks and except as otherwise provided in this
Agreement neither party will be entitled to recover any additional damages as a
consequence of such losses.

7.                                      Transfer

Subject to Section
6(b)(ii), neither this Agreement nor any interest or obligation in or under
this Agreement may be transferred (whether by way of security or otherwise) by
either party without the prior written consent of the other party, except
that:—

(a)                                  a
party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

(b)                                 a
party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

Any purported transfer
that is not in compliance with this Section will be void.

8.                                      Contractual
Currency

(a)                                  Payment in the Contractual Currency.  Each payment under this Agreement will be
made in the relevant currency specified in this Agreement for that payment (the
“Contractual Currency”).  To the extent
permitted by applicable law, any obligation to make payments under this
Agreement in the Contractual Currency will not be discharged or satisfied by
any tender in any currency other than the Contractual Currency, except to the
extent such tender results in the actual receipt by the party to which payment
is owed, acting in a reasonable manner and in good faith in converting the
currency so tendered into the Contractual Currency, of the full amount in the
Contractual Currency of all amounts payable in respect of this Agreement.  If for any reason the amount in the
Contractual Currency so received falls short of the amount in the Contractual
Currency payable in respect of this Agreement, the party required to make the
payment will, to the extent permitted by applicable law, immediately pay such
additional amount in the Contractual Currency as may be necessary to compensate
for the shortfall.  If for any reason the
amount in the Contractual Currency so received exceeds the amount in the
Contractual Currency payable in respect of this Agreement, the party receiving
the payment will refund promptly the amount of such excess.

(b)                                 Judgments.  To the extent permitted by applicable law, if
any judgment or order expressed in a currency other than the Contractual
Currency is rendered (i) for the payment of any amount owing in respect of this
Agreement, (ii) for the payment of any amount relating to any early termination
in respect of this Agreement or (iii) in respect of a judgment or order of
another court for the payment of any amount described in (i) or (ii) above, the
party seeking recovery, after recovery in full of the aggregate amount to which
such party is entitled pursuant to the judgment or order, will be entitled to
receive immediately from the other party the amount of any shortfall of the
Contractual Currency received by such party as a consequence of sums paid in
such other currency and will refund promptly to the other party any excess of
the Contractual Currency received by such party as a consequence of sums paid
in such other currency if such shortfall or such excess arises or results from
any variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such
judgment or order and the rate of exchange at which such party is able, acting
in a reasonable manner and in good faith in converting the currency received
into the Contractual Currency, to purchase the Contractual Currency with the
amount of the currency of the judgment or order actually received by such
party.  The term “rate of exchange”
includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the Contractual Currency.

(c)                                  Separate Indemnities.  To the extent permitted by applicable law,
these indemnities constitute separate and independent obligations from the
other obligations in this Agreement, will be enforceable as separate and
independent causes of action, will apply notwithstanding any indulgence granted
by the party to which any payment is owed and will not be affected by judgment
being obtained or claim or proof being made for any other sums payable in
respect of this Agreement.

(d)                                 Evidence of Loss.  For the purpose of this Section 8, it will be
sufficient for a party to demonstrate that it would have suffered a loss had an
actual exchange or purchase been made.

9.                                      Miscellaneous

(a)                                  Entire Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties with respect to its subject matter
and supersedes all oral communication and prior writings with respect thereto.

(b)                                 Amendments.  No amendment, modification or waiver in
respect of this Agreement will be effective unless in writing (including a
writing evidenced by a facsimile transmission) and executed by each of the
parties or confirmed by an exchange of telexes or electronic messages on an
electronic messaging system.

(c)                                  Survival of Obligations.  Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

(d)                                 Remedies Cumulative.  Except as provided in this Agreement, the rights,
powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law.

(e)                                  Counterparts and Confirmations.

(i)       This
Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission),
each of which will be deemed an original.

(ii)    The
parties intend that they are legally bound by the terms of each Transaction
from the moment they agree to those terms (whether orally or otherwise).  A Confirmation shall he entered into as soon
as practicable and may he executed and delivered in counterparts (including by
facsimile transmission) or be created by an exchange of telexes or by an exchange
of electronic messages on an electronic messaging system, which in each case
will be sufficient for all purposes to evidence a binding supplement to this
Agreement.  The parties will specify
therein or through another effective means that any such counterpart, telex or
electronic message constitutes a Confirmation.

(f)                                    No Waiver of Rights.  A failure or delay in exercising any right,
power or privilege in respect of this Agreement will not be presumed to operate
as a waiver, and a single or partial exercise of any right, power or privilege
will not be presumed to preclude any subsequent or further exercise, of that
right, power or privilege or the exercise of any other right, power or
privilege.

(g)                                 Headings.  The headings used in this Agreement are for
convenience of reference only and are not to affect the construction of or to
be taken into consideration in interpreting this Agreement.

10.                               Offices;
Multibranch Parties

(a)                                  If
Section 10(a) is specified in the Schedule as applying, each party that enters
into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office
or jurisdiction of incorporation or organisation of such party, the obligations
of such party are the same as if it had entered into the Transaction through
its head or home office. This representation will be deemed to be repeated by
such party on each date on which a Transaction is entered into.

(b)                                 Neither
party may change the Office through which it makes and receives payments or
deliveries for the purpose of a Transaction without the prior written consent
of the other party.

(c)                                  If
a party is specified as a Multibranch Party in the Schedule, such Multibranch
Party may make and receive payments or deliveries under any Transaction through
any Office listed in the Schedule, and the Office through which it makes and
receives payments or deliveries with respect to a Transaction will be specified
in the relevant Confirmation.

11.                               Expenses

A Defaulting Party will,
on demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred
by such other party by reason of the enforcement and protection of its rights
under this Agreement or any Credit Support Document 

to which the Defaulting
Party is a party or by reason of the early termination of any Transaction,
including, but not limited to, costs of collection.

12.                               Notices

(a)                                  Effectiveness.  Any notice or other communication in respect
of this Agreement may be given in any manner set forth below (except that a
notice or other communication under Section 5 or 6 may not be given by
facsimile transmission or electronic messaging system) to the address or number
or in accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:—

(i)             if in writing and
delivered in person or by courier, on the date it is delivered;

(ii)          if sent by telex, on the
date the recipient’s answerback is received;

(iii)       if sent by facsimile
transmission, on the date that transmission is received by a responsible
employee of the recipient in legible form (it being agreed that the burden of
proving receipt will be on the sender and will not be met by a transmission
report generated by the sender’s facsimile machine);

(iv)      if sent by certified or
registered mail (airmail, if overseas) or the equivalent (return receipt
requested), on the date that mail is delivered or its delivery is attempted; or

(v)                                 if
sent by electronic messaging system, on the date that electronic message is
received,

unless the date of that
delivery (or attempted delivery) or that receipt, as applicable, is not a Local
Business Day or that communication is delivered (or attempted) or received, as
applicable, after the close of business on a Local Business Day, in which case
that communication shall be deemed given and effective on the first following
day that is a Local Business Day.

(b)                                 Change of Addresses.  Either party may by notice to the other
change the address, telex or facsimile number or electronic messaging system
details at which notices or other communications are to be given to it.

13.                               Governing
Law and Jurisdiction

(a)                                  Governing Law.  This Agreement will be governed by and
construed in accordance with the law specified in the Schedule.

(b)                                 Jurisdiction.  With respect to any suit, action or
proceedings relating to this Agreement (“Proceedings”), each party
irrevocably:—

(i)             submits to the
jurisdiction of the English courts, if this Agreement is expressed to be
governed by English law, or to the non-exclusive jurisdiction of the courts of
the State of New York and the United States District Court located in the
Borough of Manhattan in New York City, if this Agreement is expressed to be
governed by the laws of the State of New York; and

(ii)          waives any objection
which it may have at any time to the laying of venue of any Proceedings brought
in any such court, waives any claim that such Proceedings have been brought in
an inconvenient forum and further waives the right to object, with respect to
such Proceedings, that such court does not have any jurisdiction over such
party.

Nothing in this Agreement
precludes either party from bringing Proceedings in any other jurisdiction (outside,
if this Agreement is expressed to be governed by English law, the Contracting
States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act
1982 or any modification, extension or re-enactment thereof for the time being
in force) nor will the bringing of Proceedings in any one or more jurisdictions
preclude the bringing of Proceedings in any other jurisdiction.

(c)                                  Service of Process.  Each party irrevocably appoints the Process
Agent (if any) specified opposite its name in the Schedule to receive, for it
and on its behalf, service of process in any Proceedings.  If for any

reason any party’s
Process Agent is unable to act as such, such party will promptly notify the
other party and within 30 days appoint a substitute process agent acceptable to
the other party.  The parties irrevocably
consent to service of process given in the manner provided for notices in
Section 12.  Nothing in this Agreement
will affect the right of either party to serve process in any other manner
permitted by law.

(d)                                 Waiver of Immunities.  Each party irrevocably waives, to the fullest
extent permitted by applicable law, with respect to itself and its revenues and
assets (irrespective of their use or intended use), all immunity on the grounds
of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any Proceedings.

14.                               Definitions

As used in this
Agreement:—

“Additional
Termination Event” has the meaning specified in Section 5(b).

“Affected
Party”
has the meaning specified in Section 5(b).

“Affected
Transactions”
means (a) with respect to any Termination Event consisting of an Illegality,
Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence
of such Termination Event and (b) with respect to any other Termination Event,
all Transactions.

“Affiliate” means,
subject to the Schedule, in relation to any person, any entity controlled,
directly or indirectly, by the person, any entity that controls, directly or
indirectly, the person or any entity directly or indirectly under common
control with the person.  For this
purpose, “control” of any entity or person means ownership of a majority of the
voting power of the entity or person.

“Applicable Rate” means:—

(a)                                  in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

(b)                                 in
respect of an obligation to pay an amount under Section 6(e) of either party
from and after the date (determined in accordance with Section 6(d)(ii)) on
which that amount is payable, the Default Rate;

(c)                                  in
respect of all other obligations payable or deliverable (or which would have
been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

(d)                                 in
all other cases, the Termination Rate.

“Burdened Party” has the
meaning specified in Section 5(b).

“Change in Tax Law” means the
enactment, promulgation, execution or ratification of, or any change in or
amendment to, any law (or in the application or official interpretation of any
law) that occurs on or after the date on which the relevant Transaction is
entered into.

“consent” includes a
consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Credit Event Upon Merger”
has the meaning specified in Section 5(b).

“Credit Support Document”
means any agreement or instrument that is specified as such in this Agreement.

“Credit Support Provider”
has the meaning specified in the Schedule.

“Default Rate” means a
rate per annum equal to the cost (without proof or evidence of any actual cost)
to the relevant payee (as certified by it) if it were to fund or of funding the
relevant amount plus 1% per annum.

“Defaulting Party” has
the meaning specified in Section 6(a).

“Early Termination Date”
means the date determined in accordance with Section 6(a) or 6(b)(iv).

“Event of Default” has
the meaning specified in Section 5(a) and, if applicable, in the Schedule.

“Illegality” has the
meaning specified in Section 5(b).

“Indemnifiable Tax” means
any Tax other than a Tax that would not be imposed in respect of a payment
under this Agreement but for a present or former connection between the
jurisdiction of the government or taxation authority imposing such Tax and the
recipient of such payment or a person related to such recipient (including,
without limitation, a connection arising from such recipient or related person
being or having been a citizen or resident of such jurisdiction, or being or
having been organised, present or engaged in a trade or business in such
jurisdiction, or having or having had a permanent establishment or fixed place
of business in such jurisdiction, but excluding a connection arising solely
from such recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

“law” includes any
treaty, law, rule or regulation (as modified, in the case of tax matters, by
the practice of any relevant governmental revenue authority) and “lawful” and “unlawful”
will be construed accordingly.

“Local Business Day”
means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits)
(a) in relation to any obligation under Section 2(a)(i), in the place(s)
specified in the relevant Confirmation or, if not so specified, as otherwise
agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2), in the relevant locations for
performance with respect to such Specified Transaction.

“Loss” means, with
respect to this Agreement or one or more Terminated Transactions, as the case
may be, and a party, the Termination Currency Equivalent of an amount that
party reasonably determines in good faith to be its total losses and costs (or
gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions,
as the case may be, including any loss of bargain, cost of funding or, at the
election of such party but without duplication, loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge
or related trading position (or any gain resulting from any of them).  Loss includes losses and costs (or gains) in
respect of any payment or delivery required to have been made (assuming
satisfaction of each applicable condition precedent) on or before the relevant
Early Termination Date and not made, except, so as to avoid duplication, if
Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies.  Loss does not include a party’s legal fees
and out-of-pocket expenses referred to under Section 11.  A party will determine its Loss as of the
relevant Early Termination Date, or, if that is not reasonably practicable, as
of the earliest date thereafter as is reasonably practicable.  A party may (but need not) determine its Loss
by reference to quotations of relevant rates or prices from one or more leading
dealers in the relevant markets.

“Market Quotation” means,
with respect to one or more Terminated Transactions and a party making the
determination, an amount determined on the basis of quotations from Reference
Market-makers.  Each quotation will be
for an amount, if any, that would be paid to such party (expressed as a negative
number) or by such party (expressed as a positive number) in consideration of
an agreement between such party (taking into account any existing Credit
Support Document with respect to the obligations of such party) and the quoting
Reference Market-maker to enter into a transaction (the “Replacement
Transaction”) that would have the effect of preserving for such party the
economic equivalent of any payment or delivery (whether the underlying
obligation was absolute or contingent and assuming the satisfaction of each
applicable condition precedent) by the parties under Section 2(a)(i) in respect
of such Terminated Transaction or group of Terminated Transactions that would,
but for the occurrence of the relevant Early Termination Date, have

been required after that
date.  For this purpose, Unpaid Amounts
in respect of the Terminated Transaction or group of Terminated Transactions
are to be excluded but, without limitation, any payment or delivery that would,
but for the relevant Early Termination Date, have been required (assuming
satisfaction of each applicable condition precedent) after that Early
Termination Date is to be included.  The
Replacement Transaction would be subject to such documentation as such party
and the Reference Market-maker may, in good faith, agree.  The party making the determination (or its
agent) will request each Reference Market-maker to provide its quotation to the
extent reasonably practicable as of the same day and time (without regard to different
time zones) on or as soon as reasonably practicable after the relevant Early
Termination Date.  The day and time as of
which those quotations are to be obtained will be selected in good faith by the
party obliged to make a determination under Section 6(e), and, if each party is
so obliged, after consultation with the other. 
If more than three quotations are provided, the Market Quotation will be
the arithmetic mean of the quotations, without regard to the quotations having
the highest and lowest values.  If
exactly three such quotations are provided, the Market Quotation will be the
quotation remaining after disregarding the highest and lowest quotations.  For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall
be disregarded.  If fewer than three
quotations are provided, it will be deemed that the Market Quotation in respect
of such Terminated Transaction or group of Terminated Transactions cannot be
determined.

“Non-default Rate” means
a rate per annum equal to the cost (without proof or evidence of any actual
cost) to the Non-defaulting Party (as certified by it) if it were to fund the
relevant amount.

“Non-defaulting Party”
has the meaning specified in Section 6(a).

“Office” means a branch
or office of a party, which may be such party’s head or home office.

“Potential Event of Default”
means any event which, with the giving of notice or the lapse of time or both,
would constitute an Event of Default.

“Reference Market-makers”
means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the
highest credit standing which satisfy all the criteria that such party applies
generally at the time in deciding whether to offer or to make an extension of
credit and (b) to the extent practicable, from among such dealers having an
office in the same city.

“Relevant Jurisdiction”
means, with respect to a party, the jurisdictions (a) in which the party is
incorporated, organised, managed and controlled or considered to have its seat,
(b) where an Office through which the party is acting for purposes of this
Agreement is located, (c) in which the party executes this Agreement and (d) in
relation to any payment, from or through which such payment is made.

“Scheduled Payment Date”
means a date on which a payment or delivery is to be made under Section 2(a)(i)
with respect to a Transaction.

“Set-off” means set-off,
offset, combination of accounts, right of retention or withholding or similar
right or requirement to which the payer of an amount under Section 6 is
entitled or subject (whether arising under this Agreement, another contract,
applicable law or otherwise) that is exercised by, or imposed on, such payer.

“Settlement Amount”
means, with respect to a party and any Early Termination Date, the sum of:—

(a)                                  the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

(b)                                 such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the
reasonable belief of the party making the determination) produce a commercially
reasonable result.

“Specified Entity” has
the meanings specified in the Schedule.

“Specified Indebtedness”
means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of
borrowed money.

“Specified Transaction”
means, subject to the Schedule, (a) any transaction (including an agreement
with respect thereto) now existing or hereafter entered into between one party
to this Agreement (or any Credit Support Provider of such party or any
applicable Specified Entity of such party) and the other party to this
Agreement (or any Credit Support Provider of such other party or any applicable
Specified Entity of such other party) which is a rate swap transaction, basis
swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any
option with respect to any of these transactions), (b) any combination of these
transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

“Stamp Tax” means any
stamp, registration, documentation or similar tax.

“Tax” means any present
or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any
government or other taxing authority in respect of any payment under this
Agreement other than a stamp, registration, documentation or similar tax.

“Tax Event” has the
meaning specified in Section 5(b).

“Tax Event Upon Merger”
has the meaning specified in Section 5(b).

“Terminated Transactions”
means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an Event
of Default, all Transactions (in either case) in effect immediately before the
effectiveness of the notice designating that Early Termination Date (or, if “Automatic
Early Termination” applies, immediately before that Early Termination Date).

“Termination Currency”
has the meaning specified in the Schedule.

“Termination Currency Equivalent”
means, in respect of any amount denominated in the Termination Currency, such
Termination Currency amount and, in respect of any amount denominated in a
currency other than the Termination Currency (the “Other Currency”), the amount
in the Termination Currency determined by the party making the relevant
determination as being required to purchase such amount of such Other Currency
as at the relevant Early Termination Date, or, if the relevant Market Quotation
or Loss (as the case may be), is determined as of a later date, that later
date, with the Termination Currency at the rate equal to the spot exchange rate
of the foreign exchange agent (selected as provided below) for the purchase of
such Other Currency with the Termination Currency at or about 11:00 a.m. (in
the city in which such foreign exchange agent is located) on such date as would
be customary for the determination of such a rate for the purchase of such
Other Currency for value on the relevant Early Termination Date or that later
date.  The foreign exchange agent will,
if only one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the
parties.

“Termination Event” means
an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be
applicable, a Credit Event Upon Merger or an Additional Termination Event.

“Termination Rate” means
a rate per annum equal to the arithmetic mean of the cost (without proof or
evidence of any actual cost) to each party (as certified by such party) if it
were to fund or of funding such amounts.

“Unpaid Amounts” owing to
any party means, with respect to an Early Termination Date, the aggregate of
(a) in respect of all Terminated Transactions, the amounts that became payable
(or that would have become payable but for Section 2(a)(iii)) to such party
under Section 2(a)(i) on or prior to such Early Termination Date and which
remain unpaid as at such Early Termination Date and (b) in respect of each
Terminated Transaction, for each obligation under Section 2(a)(i) which was (or
would have been but for Section 2(a)(iii)) required to be settled by delivery
to such party on or prior to such Early Termination Date and which has not been
so settled as at such Early Termination Date, an amount equal to the fair
market

value of that which was
(or would have been) required to be delivered as of the originally scheduled
date for delivery, in each case together with (to the extent permitted under
applicable law) interest, in the currency, of such amounts, from (and
including) the date such amounts or obligations were or would have been
required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days elapsed.
The fair market value of any obligation referred to in clause (b) above shall
be reasonably determined by the party obliged to make the determination under
Section 6(e) or, if each party is so obliged, it shall be the average of the
Termination Currency Equivalents of the fair market  values reasonably determined by both parties.

IN
WITNESS WHEREOF the parties have executed this document on the respective dates
specified below 

	
  

  JPMorgan Chase Bank, N.A.

  	
   

  	
  Harley-Davidson
  Motorcycle Trust 2007-3 

  by: Wilmington Trust Company, not in its

  
	
   

  	
   

  	
  Individual
  capacity but solely as Owner

  
	
   

  	
   

  	
  Trustee
  on behalf of the Trust

  
	
  (“Party A”)

  	
   

  	
  (“Party B”)

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Alexander M. Hunt

  	
   

  	
   

  	
  By:

  	
  /s/ Patricia A. Evans

  
	
  Name:

  	
  Alexander M. Hunt

  	
   

  	
   

  	
  Name:

  	
  Patricia A. Evans

  
	
  Title:

  	
  Managing Director and Associate General Counsel

  	
   

  	
   

  	
  Title:

  	
  Vice President

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