Document:

EXHIBIT 10.3

 

 

 

 

ADMINISTRATION
AGREEMENT

 

among

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2005-3,

 

as
Issuer,

 

HARLEY-DAVIDSON
CREDIT CORP.,

 

as
Administrator,

 

HARLEY-DAVIDSON
CUSTOMER FUNDING CORP.,

 

as
Trust Depositor,

 

and

 

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

 

as
Indenture Trustee

 

 

Dated
as of August 1, 2005

 

 

 

 

TABLE
OF CONTENTS

 

	
  SECTION
  1. DUTIES OF THE ADMINISTRATOR

  	
  3

  
	
   

  	
   

  
	
  SECTION
  2. RECORDS

  	
  9

  
	
   

  	
   

  
	
  SECTION
  3. COMPENSATION

  	
  9

  
	
   

  	
   

  
	
  SECTION
  4. ADDITIONAL INFORMATION TO BE FURNISHED TO THE ISSUER

  	
  9

  
	
   

  	
   

  
	
  SECTION
  5. INDEPENDENCE OF THE ADMINISTRATOR

  	
  9

  
	
   

  	
   

  
	
  SECTION
  6. NO JOINT VENTURE

  	
  9

  
	
   

  	
   

  
	
  SECTION
  7. OTHER ACTIVITIES OF ADMINISTRATOR

  	
  9

  
	
   

  	
   

  
	
  SECTION
  8. TERM OF AGREEMENT; RESIGNATION AND REMOVAL OF ADMINISTRATOR

  	
  10

  
	
   

  	
   

  
	
  SECTION
  9. ACTION UPON TERMINATION, RESIGNATION OR REMOVAL

  	
  11

  
	
   

  	
   

  
	
  SECTION
  10.  NOTICES

  	
  11

  
	
   

  	
   

  
	
  SECTION
  11.  AMENDMENTS

  	
  11

  
	
   

  	
   

  
	
  SECTION
  12.  SUCCESSORS AND ASSIGNS

  	
  12

  
	
   

  	
   

  
	
  SECTION
  13.  GOVERNING LAW

  	
  12

  
	
   

  	
   

  
	
  SECTION
  14.  HEADINGS

  	
  13

  
	
   

  	
   

  
	
  SECTION
  15.  COUNTERPARTS

  	
  13

  
	
   

  	
   

  
	
  SECTION
  16.  SEVERABILITY

  	
  13

  
	
   

  	
   

  
	
  SECTION
  17.  NOT APPLICABLE TO HARLEY-DAVIDSON
  CREDIT IN OTHER CAPACITIES

  	
  13

  
	
   

  	
   

  
	
  SECTION
  18.  LIMITATION OF LIABILITY OF OWNER
  TRUSTEE AND INDENTURE TRUSTEE

  	
  13

  
	
   

  	
   

  
	
  SECTION
  19.  THIRD-PARTY BENEFICIARY

  	
  14

  
	
   

  	
   

  
	
  SECTION
  20.  SURVIVABILITY

  	
  14

  

 

 

This Administration Agreement, dated as of August 1,
2005, among Harley-Davidson Motorcycle Trust 2005-3 (the “Issuer”), Harley-Davidson Credit Corp.
(together with its successors and assigns “Harley-Davidson
Credit”) in its capacity as administrator, the “Administrator”), Harley-Davidson Customer
Funding Corp. (the “Trust Depositor”)
and The Bank of New York Trust Company, N.A., not in its individual capacity
but solely as Indenture Trustee (together with its successors and assigns, the “Indenture Trustee”).

 

W I
T N E S S E T H:

 

WHEREAS, the Issuer is issuing 4.30% Harley-Davidson
Motorcycle Contract Backed Notes, Class A-1 Notes, 4.41% Harley-Davidson
Motorcycle Contract Backed Notes, Class A-2 Notes and 4.60% Harley-Davidson
Motorcycle Contract Backed Notes, Class B Notes (collectively, the “Notes”) pursuant to the Indenture, dated
as of the date hereof (the “Indenture”),
between the Issuer and the Indenture Trustee (capitalized terms used herein
that are not otherwise defined shall have the meanings ascribed thereto in the
Indenture);

 

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

 

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

 

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

 

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

 

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

 

2

 

Section 1.              Duties
of the Administrator.

 

(a)           Duties with respect to the Indenture.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Q)          the monitoring of the
Issuer’s obligations as to the satisfaction and discharge of the Indenture and
the preparation of an Officer’s Certificate and the

 

4

 

obtaining of the Opinion of Counsel and the
Independent Certificate relating thereto (Section 4.01);

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

(FF)         the appointment of a
successor Indenture Trustee.

 

(ii)           The Administrator will:

 

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

 

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

 

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

 

6

 

(b)           Additional
Duties.

 

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

 

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

 

(iii)          Notwithstanding anything
in this Agreement or the Transaction Documents to the contrary, the Administrator
shall be responsible for performance of the duties of the Owner Trustee set
forth in Section 5.03(a), (b), (c) and (d), the penultimate sentence of Section
5.03 and Section 5.04(a) of the Trust Agreement with respect to, among other
things, accounting and reports to the Owner; provided,
however, that the Owner Trustee shall retain responsibility for the
distribution of information forms necessary to enable the Owner to prepare its
federal and state income tax returns.

 

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

 

7

 

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

 

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

 

(c)           Non-Ministerial
Matters.

 

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

 

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

 

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

 

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

 

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

 

(E)           the removal of the
Indenture Trustee.

 

(ii)           Notwithstanding anything
to the contrary in this Agreement, the Administrator shall not be obligated to,
and shall not, (A) make any payments to the Noteholders under the Transaction
Documents, (B) sell the Collateral pursuant to clause (iv)

 

8

 

of Section 5.04 of the Indenture, (C) take any other
action that the Issuer directs the Administrator not to take on its behalf or
(D) take any other action which may be construed as having the effect of
varying the investment of the Holders.

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 11.            Amendments.  This Agreement may be amended from time to
time by a written amendment duly executed and delivered by the parties hereto,
with the written consent of the Owner Trustee but without the consent of the
Noteholders, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement

 

11

 

or of
modifying in any manner the rights of the Noteholders; provided that such
amendment will not, in the Opinion of Counsel satisfactory to the Indenture
Trustee, materially and adversely affect the interest of any Noteholder.  This Agreement may also be amended by the
parties hereto with the written consent of the Owner Trustee and the Required
Holders for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of Noteholders; provided,
however, that no such amendment may (i) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, collections of
payments on the Contracts or distributions that are required to be made for the
benefit of the Noteholders or (ii) reduce the aforesaid percentage of the
holders of Notes which are required to consent to any such amendment, without
the consent of the holders of all outstanding Notes.  Notwithstanding the foregoing, the Administrator
may not amend this Agreement without the permission of the Trust Depositor,
which permission shall not be unreasonably withheld.

 

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

 

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

 

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

 

12

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

[signature page follows]

 

14

 

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

 

	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE TRUST

  
	
   

  	
  2005-3

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wilmington
  Trust Company, not in its

  
	
   

  	
   

  	
  individual
  capacity but solely as Owner

  
	
   

  	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  ANITA E. DALLAGO

  	
   

  
	
   

  	
   

  	
  Printed Name: Anita E. Dallago

  
	
   

  	
   

  	
  Title: Senior Financial Services Officer

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING

  
	
   

  	
  CORP.,
  as Trust Depositor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  PERRY A. GLASSGOW

  	
   

  
	
   

  	
   

  	
  Printed Name:  Perry A. Glassgow

  
	
   

  	
   

  	
  Title:   Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
  THE
  BANK OF NEW YORK TRUST

  
	
   

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

  
	
   

  	
  but
  solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  CYNTHIA L. DAVIS

  	
   

  
	
   

  	
   

  	
  Printed Name: Cynthia L. Davis

  
	
   

  	
   

  	
  Title:  Vice
  President

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CREDIT CORP.,

  
	
   

  	
  as
  Administrator

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  PERRY A. GLASSGOW

  	
   

  
	
   

  	
   

  	
  Printed Name: Perry A. Glassgow

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

  

 

 

Signature Page to Administration Agreement

 

 

LIMITED
POWER OF ATTORNEY

 

	
  State of Illinois

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.

  
	
  County of Cook

  	
  )

  	
   

  

 

KNOW ALL PERSONS BY THESE PRESENTS, that Wilmington
Trust Company, a Delaware banking corporation (the “Owner Trustee”), whose principal executive office is
located at Wilmington Trust Company, Rodney Square North, 1100 North Market
Street, Wilmington, Delaware Attention: 
Trust Administration, by and through its duly elected and authorized
officer, Joann A. Rozell, an Assistant Vice
President, on behalf of itself and of Harley-Davidson Motorcycle Trust 2005-3
(the “Trust”) as Issuer under the
Administration Agreement, dated as of August 1, 2005 (the “Administration Agreement”), among the
Trust, Harley-Davidson Customer Funding Corp., The Bank of New York Trust
Company, N.A., as Indenture Trustee, and Harley-Davidson Credit Corp., as Administrator,
does hereby nominate, constitute and appoint Harley-Davidson Credit Corp., a
Nevada corporation, each of its officers from time to time and each of its
employees authorized by it from time to time to act hereunder, jointly and each
of them severally, together or acting alone, its true and lawful
attorney-in-fact, for the Owner Trustee and the Issuer in their name, place and
stead, in the sole discretion of such attorney-in-fact, to perform such
calculations and prepare or cause the preparation by other appropriate persons
of, and to execute on behalf of the Issuer or the Owner Trustee, all such
documents, reports, filings, instruments, certificates and opinions that the
Issuer or the Owner Trustee is required to prepare, file or deliver pursuant to
the Administration Agreement, and to take any and all other action, as such
attorney-in-fact may deem necessary or desirable in accordance with the
directions of the Owner Trustee and in connection with its duties as
Administrator or successor Administrator under the Administration
Agreement.  Capitalized terms used herein
that are not otherwise defined shall have the meanings ascribed thereto in the
Administration Agreement.

 

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

 

 

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

 

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

 

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

 

Executed as of this 30th day of August, 2005.

 

 

	
   

  	
  Wilmington
  Trust Company, not in its individual

  
	
   

  	
  capacity
  but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  JOANN A. ROZELL

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
    Printed
  Name: Joann A. Rozell

  
	
   

  	
   

  
	
   

  	
   

  	
     Title:
  Assistant Vice President

  

 

 

CERTIFICATE
OF ACKNOWLEDGMENT OF

 

NOTARY
PUBLIC

 

	
  State of Delaware

  	
  )

  
	
   

  	
  )  SS.

  
	
  County of New Castle

  	
  )

  

 

	
   

  	
  On August 24, 2005 before me,

  	
  Amanda E. Burger

  	
   

  
	
   

  	
   

  	
  [Insert name and title of
  notary]

  
	
   

  	
  personally appeared

  	
  Joann A. Rozell

  	
   .

  
	
   

  	
   

  
	
  ý

  	
  personally known to me, or

  
	
   

  	
   

  
	
  o

  	
  proved to me on the basis of satisfactory evidence
  to be the person(s) whose name(s) is/are

  
	
   

  	
   

  
	
  subscribed to the within instrument and
  acknowledged to me that he/she/they executed the same in his/her/their
  authorized capacity(ties), and that by his/her/their signature(s) on the
  instrument the person(s), or the entity upon behalf of which person(s) acted,
  executed the instrument.

  
						

 

	
   

  	
  WITNESS
  my hand and official seal.

  
	
   

  
	
   

  
	
  Signature: 

  	
    /s/
  AMANDA E. BURGER

  	
   

  
	
   

  
	
   

  	
  [SEAL]

  
	
   

  
	
  Notary Public, State of Delaware

  
	
   

  
	
  My Comm. Expires Mar. 7, 2007EXHIBIT 10.1

 

QUANEX
CORPORATION

SUMMARY OF
NON-EMPLOYEE DIRECTOR COMPENSATION

 

1.                                       Non-employee
directors are paid in cash for their services with a deferral option.

 

2.                                       Unless
and until a recommendation is made by the Nominating & Corporate
Governance Committee and approval of the Board, the amount of cash compensation
for non-employee directors is as follows: 
Retainer - $40,000/year; Board meeting fee - $1,250/meeting for
telephonic and $1,500 for in person; Committee meeting fee - $1,250/meeting;
Committee chairman fee - $2,500/year; and reimbursement for all travel and
living expenses associated with meeting attendance.

 

3.                                       Unless
and until a recommendation is made by the Nominating & Corporate
Governance Committee and approval of the Board, new non-employee directors
receive a one-time non-incentive stock option grant of 5,000 shares after one
year of service.

 

4.                                       Unless
and until a recommendation is made by the Nominating & Corporate
Governance Committee and approval of the Board, on the last business day of the
fiscal year, non-employee directors receive an annual non-incentive stock
option grant of $50,000 in value.

 

5.                                       Unless
and until a recommendation is made by the Nominating & Corporate
Governance Committee and approval of the Board, on the last business day of the
fiscal year, non-employee directors receive an annual restricted stock award of
$25,000 in value of the Company’s common stock during service as a non-employee
director.

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