Document:

Exhibit 10.3

 

 

ADMINISTRATION AGREEMENT

 

among

 

HARLEY-DAVIDSON MOTORCYCLE TRUST
2006-2,

 

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 May 1, 2006

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
   

  	
  DUTIES OF THE
  ADMINISTRATOR

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  RECORDS

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  COMPENSATION

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  ADDITIONAL
  INFORMATION TO BE FURNISHED TO THE ISSUER

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  INDEPENDENCE OF THE
  ADMINISTRATOR

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  NO JOINT VENTURE

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  OTHER ACTIVITIES OF
  ADMINISTRATOR

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  TERM OF AGREEMENT;
  RESIGNATION AND REMOVAL OF ADMINISTRATOR

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  ACTION UPON
  TERMINATION, RESIGNATION OR REMOVAL

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  NOTICES

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  AMENDMENTS

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
   

  	
  SUCCESSORS AND
  ASSIGNS

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
   

  	
  HEADINGS

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
   

  	
  COUNTERPARTS

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
   

  	
  SEVERABILITY

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
   

  	
  NOT APPLICABLE TO
  HARLEY-DAVIDSON CREDIT IN OTHER CAPACITIES

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
   

  	
  LIMITATION OF
  LIABILITY OF OWNER TRUSTEE AND INDENTURE TRUSTEE

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 19.

  	
   

  	
  THIRD-PARTY
  BENEFICIARY

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 20.

  	
   

  	
  SURVIVABILITY

  	
   

  	
  43

  

 

 

This Administration Agreement, dated as of May  1, 2006, among Harley-Davidson Motorcycle
Trust 2006-2 (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 5.36% Harley-Davidson Motorcycle Contract Backed Notes,
Class A-1 Notes, 5.35% Harley-Davidson Motorcycle Contract Backed Notes, Class
A-2 Notes and 5.58% 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);

 

(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);

 

3

 

(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 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);

 

4

 

(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);

 

(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;

 

5

 

(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.

 

(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

 

6

 

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.

 

(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.

 

7

 

(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) 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.

 

8

 

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.

 

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

 

9

 

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.

 

(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 

 

10

 

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 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 

 

11

 

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.

 

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 

 

12

 

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.

 

[signature page follows]

 

13

 

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

  
	
   

  	
  2006-2

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  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

  
	
   

  	
   

  	
   

  
	
   

  	
  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 ,  a Assistant Vice President,  on behalf of itself and of Harley-Davidson
Motorcycle Trust 2006-2 (the “Trust”) as
Issuer under the Administration Agreement, dated as of May  1, 2006 (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 31st day of May, 2006.

 

 

	
   

  	
  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 May 23, 2006 before me,

  	
  Bethany J. Taylor

  	
   

  
	
   

  	
  [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/ BETHANY J. TAYLOR

  	
   

  
	
   

  	
   

  	
  [SEAL]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Notary Public, State of Delaware

  	
   

  
	
   

  	
   

  	
  My Comm. Expires Oct. 20, 2007Exhibit 10.4

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2006-2

 

$450,000,000 5.36% HARLEY-DAVIDSON MOTORCYCLE CONTRACT

BACKED NOTES, CLASS A-1

$302,000,000 5.35% HARLEY-DAVIDSON MOTORCYCLE CONTRACT

BACKED NOTES, CLASS A-2

$48,000,000 5.58% HARLEY-DAVIDSON MOTORCYCLE CONTRACT

BACKED NOTES, CLASS B

 

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.

Trust Depositor

 

HARLEY-DAVIDSON CREDIT CORP.

Seller and Servicer

 

UNDERWRITING AGREEMENT

 

May 23, 2006

 

J.P. Morgan Securities
Inc.

ABN AMRO Incorporated

BNP Paribas Securities
Corp.

Citigroup Global Markets
Inc.

Wachovia Capital Markets,
LLC

c/o J.P. Morgan
Securities Inc.

270 Park Avenue

New York, New York  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 2006-2 (the “Trust”) to
issue and sell to you (the “Underwriters”) $450,000,000 principal amount of its
5.36% Harley-Davidson Motorcycle Contract Backed Notes, Class A-1 (the “Class A-1
Notes”), $302,000,000 principal amount of its 5.35% Harley-Davidson Motorcycle
Contract Backed Notes, Class A-2 (the “Class A-2 Notes” and, together
with the Class A-1 Notes, the “Class A Notes”) and $48,000,000
principal amount of its 5.58% Harley-Davidson Motorcycle Contract Backed Notes,
Class B (the “Class B Notes” and, together with the Class A
Notes, the “Notes”). The assets of the Trust will include a pool of motorcycle
conditional sales contracts (the “Initial 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 May 12, 2006 (the “Initial Cutoff
Date”), all insurance proceeds and liquidation proceeds 

 

 

with respect thereto,
security interests in the motorcycles financed thereby, the related Initial
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
Pre-Funding Account, the Interest Reserve Account and certain other property. The
Initial Contracts will be serviced for the Trust by Harley-Davidson. The Notes
will be issued pursuant to the Indenture to be dated as of May 1, 2006 (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 May 2,
2006 (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 Initial Contracts from the Trust Depositor pursuant to a Sale and
Servicing Agreement to be dated as of May 1, 2006 (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 May 1, 2006 (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 Initial Contracts from Harley-Davidson on the
Closing Date (as defined herein) pursuant to a Transfer and Sale Agreement to
be dated as of May 1, 2006 (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.

 

On the Closing
Date, $296,724,733.64 will be deposited in the Pre-Funding Account. It is
intended that additional motorcycle conditional sales contracts, including all
rights to receive payments thereon after their related Subsequent Cutoff Dates
and security interests in the Harley-Davidson, Inc., Buell and certain
other manufacturers’ motorcycles financed thereby (such contracts, together
with all such rights and interests, the “Subsequent Contracts” and, together
with the Initial Contracts, the “Contracts”), will be purchased by the Trust
Depositor from Harley-Davidson pursuant to one or more related Subsequent
Purchase Agreements and further transferred and assigned by the Trust Depositor
to the Trust and pledged by the Trust to the Indenture Trustee pursuant to one
or more related Subsequent Transfer Agreements from funds on deposit in the
Pre-Funding Account from time to time on or before the date which is 90 days
from and including the Closing Date.

 

In connection with
the sale of the Offered Securities, the Trust Depositor and Harley-Davidson
will prepare a Prospectus Supplement to be dated May 23, 2006 which will
supplement the Base Prospectus dated as of May 19, 2006. The Prospectus
sets forth certain 

 

2

 

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 2:55 p.m. on May 23,
2006 (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 May 19, 2006 (the “Preliminary
Prospectus Supplement”) to the base prospectus dated May 19, 2006 (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 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 May 23, 2006 (together with information referred to under
the caption “Static Pool Data” therein regardless of whether it is deemed a part of
the Registration Statement or Prospectus, the “Prospectus Supplement”) to the
prospectus dated May 19, 2006 (the “Base Prospectus”), relating to the
Offered Securities and the method of distribution 

 

3

 

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 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 

 

4

 

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].

 

(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 

 

5

 

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, each Subsequent Purchase Agreement,
the Indenture or each Subsequent Transfer Agreement, 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, the Indenture, each
Subsequent Purchase Agreement or each Subsequent Transfer Agreement.

 

(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 

 

6

 

Offered Securities, the Sale and Servicing Agreement,
the Transfer and Sale Agreement, the Trust Agreement, the Administration
Agreement, the Indenture, or the Lockbox Agreement, each Subsequent Purchase
Agreement or each Subsequent Transfer 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 (and on or before each Subsequent Transfer Date in the case of
Subsequent Contracts being transferred to the Trust).

 

(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 (or each Subsequent Transfer Date in the
case of Subsequent Contracts being transferred to the Trust), 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, the Lockbox Agreement,
each Subsequent Purchase Agreement and each Subsequent Transfer 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, the
Transfer and Sale Agreement, each Subsequent Purchase Agreement and each
Subsequent Transfer Agreement will be true and correct at the time made and on
and as of the Closing Date (and on each Subsequent Transfer Date in the case of
Subsequent Contracts being transferred to the Trust) as if set forth herein.

 

(n)                                 The Initial Contracts conveyed to the
Trust had aggregate outstanding balances determined as of the Initial 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, the Transfer and Sale Agreement, each Subsequent
Purchase Agreement and each Subsequent Transfer 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, the Transfer and Sale Agreement, each Subsequent
Purchase Agreement and each Subsequent Transfer 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 

 

7

 

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.

 

(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)                                  In relation to the Offered Securities
which have a maturity of one year or more, during the period up to but
excluding the date on which Directive 2003/71/EC is implemented in the United
Kingdom (the “Implementation Date”), it has not offered or sold and will not
offer or sell any such Offered Securities to persons in the United Kingdom
except to persons whose ordinary activities involve them in acquiring, holding,
managing or disposing of investments (as principal or agent) for the purposes
of their businesses or otherwise in circumstances which have not resulted and
will not result in an offer to the public in the United Kingdom within the
meaning of the Public Offers of Securities Regulations 1995, as amended.

 

(b)                                 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.

 

(c)                                  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 May 31,
2006, or such later date (not later than June 14, 2006) 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”).

 

8

 

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.

 

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 

 

9

 

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 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.

 

10

 

(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.

 

(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 

 

11

 

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)                                 The Trust Depositor and Harley-Davidson
will cause Winston & Strawn LLP to deliver to the Underwriters or
on before each Subsequent Transfer Date, one or more opinions, addressed to the
Underwriters, with respect to the transfer of Subsequent Contracts
substantially in the form of the opinions delivered by Winston &
Strawn LLP on the Closing Date with respect to the transfer of the Initial Contracts.

 

(p)                                 The Trust Depositor will deliver to the
Underwriters on or before each Subsequent Transfer Date each Officer’s
Certificate required to be furnished to the Indenture Trustee pursuant to Section 2.04(b) of
the Sale and Servicing Agreement.

 

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).

 

12

 

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 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 

 

13

 

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 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;

 

14

 

(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;

 

(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 

 

15

 

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 Prospectus and the 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 Prospectus and the
Prospectus under the headings “Description of the Notes” and “Certain
Information Regarding the Securities”, 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;

 

(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 

 

16

 

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
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; and

 

(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 

 

17

 

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).

 

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.

 

(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 

 

18

 

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 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 

 

19

 

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  — Material Federal Income Tax Consequences” and “Material
Federal Income Tax Consequences” accurately describe the material federal
income tax consequences to holders of the Offered Securities. 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;

 

20

 

(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;

 

(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, 

 

21

 

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 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 

 

22

 

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 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 perfected security
interest by the Trust Depositor to the Trust and the conveyance 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 

 

23

 

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;

 

(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 

 

24

 

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 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 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.

 

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

 

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

 

(w)                               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.

 

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 

 

25

 

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
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 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 or in any computer tape
or other information in respect of the Notes, the Contracts or other Trust
Property furnished by the Trust Depositor or Harley-Davidson to any
Underwriter.

 

(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 

 

26

 

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 or the Prospectus
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 or (iii) in any computer
tape or other information in respect of the Notes, the Contracts or other Trust
Property furnished by the Trust Depositor or Harley-Davidson to any Underwriter.
This indemnity agreement will be in addition to any liability that an
Underwriter may otherwise have.

 

(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.

 

27

 

(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 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 

 

28

 

(other than Underwriter
Information) and (2) information in the Preliminary Prospectus provided by
the Trust Depositor or Harley-Davidson that is used to calculate or create any
Derived Information.

 

“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 (1) 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 information regarding the Offered Securities
that is disseminated by any Underwriter to a potential investor) or (2) 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.

 

(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, (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 

 

29

 

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:

 

(i)                                     any Free Writing Prospectus that is included in
the Time of Sale 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 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 

 

30

 

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
the 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 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 in a
prominent manner 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 affirmatively agree to purchase the
Offered Securities on the terms described in the Corrected Prospectus.

 

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 

 

31

 

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.

 

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, New York 10017, Attention: North
American ABS; 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.

 

32

 

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.

 

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/ PERRY A. GLASSGOW

  
	
   

  	
   

  	
  Name:

  	
  Perry A. Glassgow

  
	
   

  	
   

  	
  Title:

  	
  Vice President-
  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CREDIT CORP.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PERRY A. GLASSGOW

  
	
   

  	
   

  	
  Name:

  	
  Perry A. Glassgow

  
	
   

  	
   

  	
  Title:

  	
  Vice President-
  Treasurer

  
						

 

 

The foregoing Agreement
is hereby

confirmed and accepted as
of the

date first above written.

 

 

J.P. MORGAN SECURITIES
INC.

ABN
AMRO INCORPORATED

BNP PARIBAS SECURITIES CORP.

CITIGROUP
GLOBAL MARKETS INC.

WACHOVIA
CAPITAL MARKETS, LLC

 

By: J.P. MORGAN
SECURITIES INC.

 

	
  By:

  	
  /s/ JOHN CHO

  	
   

  
	
   

  	
  Name: John Cho

  
	
   

  	
  Title: Managing
  Director

  

 

 

SCHEDULE I

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2006-2

 

	
  OFFERED SECURITY

  	
   

  	
  PRINCIPAL AMOUNT

  	
   

  	
  PRICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-1
  Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
  99.84856

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
  99.84856

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
  99.84856

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
  99.84856

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
  99.84856

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-2
  Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  60,400,000

  	
   

  	
  99.80453

  	
  %

  
	
  ABN AMRO Incorporated

  	
   

  	
  $

  	
  60,400,000

  	
   

  	
  99.80453

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  60,400,000

  	
   

  	
  99.80453

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  60,400,000

  	
   

  	
  99.80453

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  60,400,000

  	
   

  	
  99.80453

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class B
  Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan Securities
  Inc.

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.64503

  	
  %

  
	
  ABN AMRO
  Incorporated

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.64503

  	
  %

  
	
  BNP Paribas
  Securities Corp.

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.64503

  	
  %

  
	
  Citigroup Global
  Markets Inc.

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.64503

  	
  %

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.64503

  	
  %

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