Document:

EXHIBIT
4.19

 

 

 

TRUST AGREEMENT

 

by and between

 

HARLEY-DAVIDSON
CUSTOMER FUNDING CORP.,

as Trust
Depositor,

 

and

 

WILMINGTON TRUST
COMPANY,

as Owner Trustee

 

 

Dated as of
October 1, 2003

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE

  	
  DEFINITIONS

  	
   

  
	
   

  	
  Section
  1.01.

  	
   

  	
  Capitalized
  Terms

  
	
   

  	
  Section
  1.02.

  	
   

  	
  Other
  Definitional Provisions

  
	
   

  	
  Section
  1.03.

  	
   

  	
  Usage
  of Terms

  
	
   

  	
  Section
  1.04.

  	
   

  	
  Section
  References

  
	
   

  	
  Section
  1.05.

  	
   

  	
  Accounting
  Terms

  
	
  ARTICLE TWO

  	
  ORGANIZATION

  
	
   

  	
  Section
  2.01.

  	
   

  	
  Name

  
	
   

  	
  Section
  2.02.

  	
   

  	
  Office

  
	
   

  	
  Section
  2.03.

  	
   

  	
  Purposes
  and Powers

  
	
   

  	
  Section
  2.04.

  	
   

  	
  Appointment
  of Owner Trustee

  
	
   

  	
  Section
  2.05.

  	
   

  	
  Initial
  Capital Contribution of Owner Trust Estate

  
	
   

  	
  Section
  2.06.

  	
   

  	
  Declaration
  of Trust

  
	
   

  	
  Section
  2.07.

  	
   

  	
  Liability
  of Trust Depositor

  
	
   

  	
  Section
  2.08.

  	
   

  	
  Title
  to Trust Property

  
	
   

  	
  Section
  2.09.

  	
   

  	
  Situs
  of Trust

  
	
   

  	
  Section
  2.10.

  	
   

  	
  Representations
  and Warranties of the Trust Depositor

  
	
   

  	
  Section
  2.11.

  	
   

  	
  Federal
  Income Tax Treatment

  
	
  ARTICLE THREE

  	
  TRUST CERTIFICATE
  AND TRANSFER OF INTERESTS

  
	
   

  	
  Section
  3.01.

  	
   

  	
  Initial
  Ownership

  
	
   

  	
  Section
  3.02.

  	
   

  	
  The
  Trust Certificate

  
	
   

  	
  Section
  3.03.

  	
   

  	
  Authentication
  and Delivery of Trust Certificate

  
	
   

  	
  Section
  3.04.

  	
   

  	
  Registration
  of Transfer and Exchange of Trust Certificate

  
	
   

  	
  Section
  3.05.

  	
   

  	
  Mutilated,
  Destroyed, Lost or Stolen Trust Certificate

  
	
   

  	
  Section
  3.06.

  	
   

  	
  Person
  Deemed Owner

  
	
   

  	
  Section
  3.07.

  	
   

  	
  Access
  to List of Certificateholder’s Name and Address

  
	
   

  	
  Section
  3.08.

  	
   

  	
  Maintenance
  of Office or Agency

  
	
   

  	
  Section
  3.09.

  	
   

  	
  Trust
  Certificate

  
	
   

  	
  Section
  3.10.

  	
   

  	
  Appointment
  of Paying Agent

  
	
   

  	
  Section
  3.11.

  	
   

  	
  Ownership
  by Trust Depositor of Trust Certificate

  
	
  ARTICLE FOUR

  	
  ACTIONS BY OWNER TRUSTEE

  
	
   

  	
  Section
  4.01.

  	
   

  	
  Prior
  Notice to Owner with Respect to Certain Matters

  
	
   

  	
  Section
  4.02.

  	
   

  	
  Action
  by Owner with Respect to Certain Matters

  
	
   

  	
  Section
  4.03.

  	
   

  	
  Action
  by Owner with Respect to Bankruptcy

  
	
   

  	
  Section
  4.04.

  	
   

  	
  Restrictions
  on Owner’s Power

  
	
  ARTICLE FIVE

  	
  APPLICATION OF TRUST
  FUNDS; CERTAIN DUTIES

  
	
   

  	
  Section
  5.01.

  	
   

  	
  Application
  of Trust Funds

  
	
   

  	
  Section
  5.02.

  	
   

  	
  Method
  of Payment

  
	
   

  	
  Section
  5.03.

  	
   

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

  
	
   

  	
  Section
  5.04.

  	
   

  	
  Signature
  on Returns; Tax Matters Partner.

  
	
  ARTICLE SIX

  	
  AUTHORITY AND DUTIES OF
  OWNER TRUSTEE

  
	
   

  	
  Section
  6.01.

  	
   

  	
  General
  Authority

  
	
   

  	
  Section
  6.02.

  	
   

  	
  General
  Duties

  
	
   

  	
  Section
  6.03.

  	
   

  	
  Action
  Upon Instruction

  
	
   

  	
  Section
  6.04.

  	
   

  	
  No
  Duties Except as Specified in this Agreement or in Instructions

  
	
   

  	
  Section
  6.05.

  	
   

  	
  No
  Action Except Under Specified Documents or Instructions

  
	
   

  	
  Section
  6.06.

  	
   

  	
  Restrictions

  
	
   

  	
  Section
  6.07.

  	
   

  	
  Pennsylvania
  Motor Vehicle Sales Finance Act Licenses

  
					

 

 

	
  ARTICLE SEVEN

  	
  CONCERNING THE OWNER
  TRUSTEE

  
	
   

  	
  Section
  7.01.

  	
   

  	
  Acceptance
  of Trusts and Duties

  
	
   

  	
  Section
  7.02.

  	
   

  	
  Furnishing
  of Documents

  
	
   

  	
  Section
  7.03.

  	
   

  	
  Representations
  and Warranties

  
	
   

  	
  Section
  7.04.

  	
   

  	
  Reliance;
  Advice of Counsel

  
	
   

  	
  Section
  7.05.

  	
   

  	
  Not
  Acting in Individual Capacity

  
	
   

  	
  Section
  7.06.

  	
   

  	
  Owner
  Trustee Not Liable for Trust Certificate, Notes or Contracts

  
	
   

  	
  Section
  7.07.

  	
   

  	
  Owner
  Trustee May Own Trust Certificate and Notes

  
	
  ARTICLE EIGHT

  	
  COMPENSATION OF
  OWNER TRUSTEE

  
	
   

  	
  Section
  8.01.

  	
   

  	
  Owner
  Trustee’s Fees and Expenses

  
	
   

  	
  Section
  8.02.

  	
   

  	
  Indemnification

  
	
   

  	
  Section
  8.03.

  	
   

  	
  Payments
  to the Owner Trustee

  
	
  ARTICLE NINE

  	
  TERMINATION OF TRUST
  AGREEMENT

  
	
   

  	
  Section
  9.01.

  	
   

  	
  Termination
  of Trust Agreement

  
	
  ARTICLE TEN

  	
  SUCCESSOR OWNER TRUSTEES
  AND ADDITIONAL OWNER TRUSTEES

  
	
   

  	
  Section
  10.01.

  	
   

  	
  Eligibility
  Requirements for Owner Trustee

  
	
   

  	
  Section
  10.02.

  	
   

  	
  Resignation
  or Removal of Owner Trustee

  
	
   

  	
  Section
  10.03.

  	
   

  	
  Successor
  Owner Trustee

  
	
   

  	
  Section
  10.04.

  	
   

  	
  Merger
  or Consolidation of Owner Trustee

  
	
   

  	
  Section
  10.05.

  	
   

  	
  Appointment
  of Co-Trustee or Separate Trustee

  
	
  ARTICLE
  ELEVEN

  	
  MISCELLANEOUS

  
	
   

  	
  Section
  11.01.

  	
   

  	
  Supplements
  and Amendments

  
	
   

  	
  Section
  11.02.

  	
   

  	
  No
  Legal Title to Trust Estate in Owner

  
	
   

  	
  Section
  11.03.

  	
   

  	
  Limitations
  on Rights of Others

  
	
   

  	
  Section
  11.04.

  	
   

  	
  Notices

  
	
   

  	
  Section
  11.05.

  	
   

  	
  Severability
  of Provisions

  
	
   

  	
  Section
  11.06.

  	
   

  	
  Counterparts

  
	
   

  	
  Section
  11.07.

  	
   

  	
  Successors
  and Assigns

  
	
   

  	
  Section
  11.08.

  	
   

  	
  Covenants
  of the Trust Depositor

  
	
   

  	
  Section
  11.09.

  	
   

  	
  No
  Petition

  
	
   

  	
  Section
  11.10.

  	
   

  	
  No
  Recourse

  
	
   

  	
  Section
  11.11.

  	
   

  	
  Headings

  
	
   

  	
  Section
  11.12.

  	
   

  	
  Governing
  Law

  
	
   

  	
  Section
  11.13.

  	
   

  	
  Trust
  Certificate Transfer Restrictions

  
	
   

  	
  Section
  11.14.

  	
   

  	
  Trust
  Depositor Payment Obligation

  
	
   

  	
   

  	
   

  	
  [signature page follows]

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  Exhibit
  A  - 
  Form of Certificate of Trust

  
	
  Exhibit
  B  - 
  Form of Trust Certificate

  

 

ii

 

TRUST AGREEMENT dated as of October 1, 2003, between
HARLEY-DAVIDSON CUSTOMER FUNDING CORP., a Nevada corporation, as Trust
Depositor (the “Trust Depositor”), and WILMINGTON TRUST COMPANY, a Delaware
banking corporation, as owner trustee (the “Owner Trustee”).

 

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

 

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

 

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

 

 

ARTICLE ONE

 

DEFINITIONS

 

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

 

“Administration  Agreement” means the Administration Agreement, dated as of
October 1, 2003, among the Trust, the Trust Depositor, the Indenture Trustee
and Harley-Davidson Credit, as administrator.

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

“Closing Date”
shall have the meaning assigned to such term in the Sale and Servicing
Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Indenture” 
means the Indenture dated as of October 1, 2003 between the Trust and
BNY Midwest Trust Company.

 

“Note
Depository Agreement” means the Agreement dated as of the Closing Date among the Trust, the
Indenture Trustee, the Administrator and DTC, as the Clearing Agency, relating
to the Notes, as the same may be amended and supplemented from time to time.

 

“Notes” means the Class A-1 Notes, the Class A-2
Notes and the Class B Notes, in each case issued pursuant to the Indenture.

 

“Owner” means the
Holder of the Trust Certificate.

 

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

 

“Owner
Trustee Corporate Trust Office” means the office of the Owner Trustee at which its
corporate trust business shall be administered, which initially shall be Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001 Attn:
Corporate Trust Administration, or such other office at such other address as
the Owner Trustee may designate from time to time by notice to the
Certificateholder, the Servicer, the Indenture Trustee, the Trust Depositor and
Harley-Davidson Credit.

 

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

 

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

 

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

 

2

 

“Sale
and Servicing Agreement” means the Sale and Servicing Agreement, dated as of October 1, 2003,
among the Trust, as Issuer, the Trust Depositor, Harley-Davidson Credit, as
servicer, and BNY Midwest Trust Company, as Indenture Trustee, as the same may
be amended or supplemented from time to time.

 

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

 

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

 

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

 

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

 

“Trust” means the
trust established by this Agreement.

 

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

 

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

 

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

 

“Underwriters” shall have the
meaning set forth in the Sale and Servicing Agreement.

 

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

 

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

 

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

 

3

 

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

 

 

ARTICLE TWO

 

ORGANIZATION

 

Section 2.01.        Name.  The Trust
created hereby shall be known as “Harley-Davidson 
Motorcycle Trust 2003-4”, in which name the Owner Trustee may
conduct the activities of the Trust, make and execute contracts and other
instruments on behalf of the Trust and sue and be sued.

 

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

 

Section 2.03.        Purposes and Powers.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

The Trust shall not engage in any activities other than in connection
with the foregoing.  Nothing contained
herein shall be deemed to authorize the Owner Trustee to engage in any business
operations or

 

4

 

any activities other than those set forth in the introductory sentence
of this Section.  Specifically, the
Owner Trustee shall have no authority to engage in any business operations, or
acquire any assets other than those specifically included in the Trust Estate
under Section 1.01, or otherwise vary the assets held by the Trust.  Similarly, the Owner Trustee shall have no discretionary
duties other than performing those ministerial acts set forth above necessary
to accomplish the purpose of this Trust as set forth in the introductory
sentence of this Section.

 

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

 

Section 2.05.        Initial Capital Contribution of Owner
Trust Estate.  The Trust Depositor hereby sells, assigns,
transfers, conveys and sets over to the Owner Trustee, as of the date hereof,
the sum of $1,000.  The Owner Trustee
hereby acknowledges receipt in trust from the Trust Depositor, as of the date hereof,
of the foregoing contribution, which shall constitute the initial Trust
Estate.  The Trust Depositor shall pay
organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

 

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

 

Section 2.07.        Liability of Trust Depositor.

 

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

 

(b)           Except
as provided in the Statutory Trust Statute, the Certificateholder shall not be
personally liable for any liability of the Trust.

 

Section 2.08.        Title to Trust Property. 
Legal title to the Trust Estate shall be vested at all times in the
Trust as a separate legal entity except where applicable law in any
jurisdiction requires title to any part of the Trust Estate to be vested in
an  Owner Trustee or Owner Trustees, in
which case title shall be deemed to be vested in the Owner Trustee, a
co-trustee and/or a separate trustee, as the case may be.

 

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

 

5

 

in
Delaware and payments will be made by the Trust only  from Delaware.  The only
office of the Trust will be at the Owner Trustee Corporate Trust Office.

 

Section 2.10.        Representations and Warranties of the
Trust Depositor.

 

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

 

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

 

(ii)           The Trust Depositor is duly qualified
to do business as a foreign corporation in good standing and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business requires such qualifications.

 

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

 

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

 

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

 

6

 

Section 2.11.        Federal Income Tax Treatment.

 

It is the intention of the Trust Depositor that the
Trust be disregarded as a separate entity pursuant to Treasury Regulations
Section 301.7701-3(b)(1)(ii) as in effect for periods after January 1,
1997.  The Trust Certificate constitutes
the sole equity interest in the Trust and must at all times be held by either
the Trust Depositor or its transferee as sole owner.  The Trust Depositor agrees not to take any action inconsistent
with such intended federal income tax treatment.  Because for federal income tax purposes the Trust will be
disregarded as a separate entity, Trust items of income, gain, loss and
deduction for any month as determined for federal income tax purposes shall be
allocated entirely to the Trust Depositor (or subsequent purchaser of the Trust
Certificate) as the sole Certificateholder.

 

ARTICLE THREE

 

TRUST CERTIFICATE AND
TRANSFER OF INTERESTS

 

Section
3.01.        Initial
Ownership.

 

(a)           Upon
the formation of the Trust by the contribution by the Trust Depositor pursuant
to Section 2.05 and until the issuance of the Trust Certificate, the Trust
Depositor shall be the sole beneficiary of the Trust.  The Trust Certificate must at all times be held by either the
Trust Depositor or its transferee as sole owner.

 

(b)           No
transfer of the Trust Certificate shall be made unless such transfer is made in
a transaction which does not require registration or qualification under the
Securities Act of 1933 or qualification under any state securities or “Blue
Sky” laws.  Neither the Owner Trustee
nor the Certificate Registrar shall effect the registration of any transfer of
the Trust Certificate unless, (i) prior to such transfer the Owner Trustee
shall have received a Tax Opinion, and (ii) following such transfer, there
would be no more than one holder of the Trust Certificate and the holder of the
Trust Certificate would not be a Foreign Person, a partnership, Subchapter S
corporation or grantor trust.

 

7

 

Section
3.02.        The
Trust Certificate.  The Trust Certificate shall be substantially
in the form of Exhibit B hereto. 
The Trust Certificate shall be executed by the Owner Trustee on behalf
of the Trust by manual or facsimile signature of an authorized officer of the
Owner Trustee and shall be deemed to have been validly issued when so
executed.  The Trust Certificate bearing
the manual or facsimile signature of individuals who were, at the time when
such signatures were affixed, authorized to sign on behalf of the Owner Trustee
shall be a valid and binding obligation of the Trust, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
authentication and delivery of such Trust Certificate or did not hold such
offices at the date of such Trust Certificate. 
The Trust Certificate shall be dated the date of its authentication.

 

Section
3.03.        Authentication
and Delivery of Trust Certificate.  The Owner
Trustee shall cause to be authenticated and delivered upon the order of the
Trust Depositor, in exchange for the Contracts and the other Trust Assets,
simultaneously with the sale, assignment and transfer to the Trust of the
Contracts and other Trust Assets, and the constructive delivery to the Owner
Trustee of the Contract Files and the other Trust Assets, a Trust Certificate
duly authenticated by the Owner Trustee, evidencing the entire ownership of the
Trust, and Notes issued by the Owner Trustee and authenticated by the Indenture
Trustee in aggregate principal amount of, in the case of (i) Class A-1 Notes,
$187,000,000, (ii) Class A-2 Notes, $98,000,000 and (iii) Class B Notes,
$15,000,000, or be valid for any purpose, unless there appears on such Trust
Certificate a certificate of authentication substantially in the form set forth
in the form of Trust Certificate attached hereto as Exhibit B, executed by the
Owner Trustee or its authenticating agent, by manual signature, and such
certificate upon any Trust Certificate shall be conclusive evidence, and the
only evidence, that such Trust Certificate has been duly authenticated and
delivered hereunder.  Upon issuance,
authorization and delivery pursuant to the terms hereof, the Trust Certificate
will be entitled to the benefits of this Agreement.

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

Section 3.07.        Access to List of Certificateholder’s
Name and Address.  The Owner Trustee shall furnish or cause to
be furnished to the Servicer and the Trust Depositor, within 15 days after
receipt by the Certificate Registrar of a written request therefor from the
Servicer or the Trust Depositor, the name and address of the Certificateholder
as of the most recent Record Date in such form as the Servicer or the Trust
Depositor may reasonably require.  The
Certificateholder, by receiving and holding the Trust Certificate, agrees with
the Servicer, the Trust Depositor and the Owner Trustee that none of the Servicer,
the Trust Depositor or the Owner Trustee shall be held accountable by reason of
the disclosure of any such information as to the name and address of the
Certificateholder hereunder, regardless of the source from which such
information was derived.

 

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

 

9

 

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

 

Section 3.10.        Appointment of Paying Agent. 
The Paying Agent shall make distributions to the Certificateholder
pursuant to Section 5.01(a) and shall report the amounts of such distributions
to the Owner Trustee.  The Paying Agent
initially shall be BNY Midwest Trust Company, and any co-paying agent chosen by
the Paying Agent that is acceptable to the Owner Trustee.  Each Paying Agent shall be permitted to
resign as Paying Agent upon 30 days’ written notice to the Owner Trustee.  In the event that BNY Midwest Trust Company
shall no longer be the Paying Agent, the Owner Trustee shall appoint a
successor to act as Paying Agent (which shall be a bank or trust company).  The Owner Trustee shall cause such successor
Paying Agent or any additional Paying Agent appointed by the Owner Trustee to
execute and deliver to the Owner Trustee an instrument in which such successor
Paying Agent or additional Paying Agent shall agree with the Owner Trustee
that, as Paying Agent, such successor Paying Agent or additional Paying Agent
will hold all sums, if any, held by it for payment to the Certificateholder in
trust for the benefit of the Certificateholder entitled thereto until such sums
shall be paid to such Certificateholder. 
The Paying Agent shall return all unclaimed funds to the Owner Trustee
and upon removal of a Paying Agent such Paying Agent shall also return all
funds in its possession to the Owner Trustee. 
The provisions of Sections 7.01, 7.03, 7.04 and 8.01 shall apply to the
Owner Trustee also in its role as Paying Agent, for so long as the Owner
Trustee shall act as Paying Agent and, to the extent applicable, to any other
paying agent appointed hereunder.  Any
reference in this Agreement to the Paying Agent shall include any co-paying
agent unless the context requires otherwise.

 

Section 3.11.        Ownership by Trust Depositor of Trust
Certificate.  The Trust Depositor shall on the Closing
Date hold the Trust Certificate.

 

ARTICLE FOUR

 

ACTIONS BY OWNER TRUSTEE

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11

 

ARTICLE FIVE

 

APPLICATION OF TRUST FUNDS;

CERTAIN DUTIES

 

Section 5.01.        Application of Trust Funds.

 

(a)           On
each Distribution Date, the Paying Agent will distribute to the
Certificateholder amounts received pursuant to Section 7.05 of the Sale and
Servicing Agreement with respect to such Distribution Date.

 

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

 

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

 

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

 

Section 5.03.        Accounting and Reports to the
Certificateholder, Owner, the Internal Revenue Service and Others. 
The Administrator shall (a) maintain (or cause to be maintained) the
books of the Trust on a calendar year basis and the accrual method of
accounting, (b) deliver to the Owner, as may be required by the Code and applicable
Treasury Regulations, such information as may be required to enable the Owner
to prepare its federal and state income tax returns, (c) file such tax returns
relating to the Trust and make such elections as from time to time may be
required or appropriate under any applicable state or federal statute or any
rule or regulation thereunder so as to maintain the federal income tax
treatment for the Trust as set forth in Section 2.11, (d) cause such tax
returns to be signed in the manner required by law and (e) collect or cause to
be collected any withholding tax as described in and in accordance with Section
5.01(c) with respect to income or distributions to Owner.  The Owner Trustee shall elect under Section
1278 of the Code to include in income currently any market discount that
accrues with respect to the Contracts. 
If applicable, the Owner Trustee shall not make the election provided
under Section 754 or Section 761 of the Code.

 

Section 5.04.        Signature on Returns; Tax Matters
Partner.

 

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

 

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

 

12

 

ARTICLE SIX

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

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

 

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

 

Section 6.03.        Action Upon Instruction.

 

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

 

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

 

(c)           Whenever
the Owner Trustee is unable to decide between alternative courses of action
permitted or required by the terms of this Agreement or under any other
Transaction Document, the Owner Trustee shall promptly give notice (in such
form as shall be appropriate under the circumstances) to the Owner requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee acts in good faith in accordance with any written instruction of
the Owner received, the Owner Trustee shall not be liable on account of such
action to any Person.  If the Owner
Trustee shall not have received appropriate instruction within ten days of such
notice (or within such shorter period of time as reasonably may be specified in
such notice or may be necessary under the

 

13

 

circumstances)
it may, but shall be under no duty to, take or refrain from taking such action
not inconsistent with this Agreement and the other Transaction Documents, as it
shall deem to be in the best interests of the Owner, and shall have no
liability to any Person for such action or inaction.

 

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

 

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

 

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

 

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

 

14

 

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

 

ARTICLE SEVEN

 

CONCERNING THE OWNER TRUSTEE

 

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

 

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

 

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

 

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

 

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

 

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

 

(f)            the
Owner Trustee shall not be liable for the default or misconduct of the
Administrator, the Trust Depositor, the Indenture Trustee or the Servicer under
any of the Transaction

 

15

 

Documents
or otherwise and the Owner Trustee shall have no obligation or liability to
perform the obligations of the Trust under this Agreement or the other
Transaction Documents that are required to be performed by the Administrator
under the Administration Agreement, the Indenture Trustee under the Indenture,
or the Servicer or the Trust Depositor under the Sale and Servicing Agreement;
and

 

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

 

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

 

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

 

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

 

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

 

(c)           Neither
the execution nor the delivery by it of this Agreement, nor the consummation by
it of the transactions contemplated hereby nor compliance by it with any of the
terms or provisions hereof will contravene any federal or Delaware law,
governmental rule or regulation governing the banking or trust powers of the
Owner Trustee or any judgment or order binding on it, or constitute any default
under its charter documents or bylaws or any indenture, mortgage, contract,
agreement or instrument to which it is a party or by which any of its
properties may be bound or result in the creation or imposition of any lien,
charge or encumbrance on the Trust Estate resulting from actions by or claims
against the Owner Trustee individually which are unrelated to this Agreement or
the other Transaction Documents.

 

Section 7.04.        Reliance; Advice of Counsel.

 

(a)           The
Owner Trustee shall incur no liability to anyone in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond or other document or paper believed by it to be genuine and
believed by it to be signed by the proper party or parties.  The Owner Trustee may accept a certified
copy of a resolution of the board of directors or other

 

16

 

governing
body of any corporate party as conclusive evidence that such resolution has
been duly adopted by such body and that the same is in full force and
effect.  As to any fact or matter the
method of determination of which is not specifically prescribed herein, the
Owner Trustee may for all purposes hereof rely on a certificate, signed by the
president or any vice president or by the treasurer or other authorized
officers of the relevant party, as to such fact or matter and such certificate
shall constitute full protection to the Owner Trustee for any action taken or
omitted to be taken by it in good faith in reliance thereon.

 

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

 

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

 

Section 7.06.        Owner Trustee Not Liable for Trust
Certificate, Notes or Contracts.  The recitals
contained herein and in the Trust Certificate (other than the signature and
countersignature of the Owner Trustee and the certificate of authentication on
the Trust Certificate) shall be taken as the statements of the Trust Depositor,
and the Owner Trustee assumes no responsibility for the correctness
thereof.  The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, any other
Transaction Document or the Trust Certificate (other than the signature and
countersignature of the Owner Trustee and the certificate of authentication on
the Trust Certificate) or the Notes, or of any Contract or related
documents.  The Owner Trustee shall at
no time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Contract, or the perfection and
priority of any security interest created by any Contract in any Motorcycle or
the maintenance of any such perfection and priority, or for or with respect to
the sufficiency of the Trust Estate or its ability to generate the payments to
be distributed to the Certificateholder under this Agreement or the Noteholders
under the Indenture, including, without limitation, the existence, condition
and ownership of any Motorcycle; the existence and enforceability of any insurance
thereon; the existence and contents of any Contract on any computer or other
record thereof; the validity of the assignment of any Contract to the Trust or
of any intervening assignment; the completeness of any Contract; the
performance or enforcement of any Contract; the compliance by the Trust
Depositor or the Servicer with any warranty or representation made under any
Transaction Document or in any related document or the accuracy of any such
warranty or representation; or any action of the Administrator, the Indenture
Trustee or the Servicer or any subservicer taken in the name of the Owner
Trustee.

 

Section 7.07.        Owner Trustee May Own Trust Certificate
and Notes.  The Owner Trustee in its individual or any
other capacity may become the owner or pledgee of the Trust Certificate or
Notes and

 

17

 

may
deal with the Trust Depositor, the Administrator, the Indenture Trustee and the
Servicer in banking transactions with the same rights as it would have if it
were not Owner Trustee.

 

ARTICLE EIGHT

 

COMPENSATION OF OWNER TRUSTEE

 

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

 

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

 

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

 

ARTICLE NINE

 

TERMINATION OF TRUST AGREEMENT

 

Section 9.01.        Termination of Trust Agreement.

 

(a)           This
Agreement (other than Article Eight) and the Trust shall terminate and be of no
further force or effect upon the earlier of (i) final distribution by the Owner
Trustee of all moneys or other property or proceeds of the Trust Estate in
accordance with the terms of the Indenture, the Sale and Servicing Agreement
and Article Five and (ii) the expiration of 21 years from the death of the
survivor of the descendants of Joseph P. Kennedy, the late Ambassador of the
United States to the Court of St.

 

18

 

James’s,
living on the date hereof.  The
bankruptcy, liquidation, dissolution, death or incapacity of any Owner shall
not (i) operate to terminate this Agreement or the Trust, (ii) entitle such
Owner’s legal representatives or heirs to claim an accounting or to take any
action or proceeding in any court for a partition or winding up of all or any
part of the Trust or Trust Estate or (iii) otherwise affect the rights,
obligations and liabilities of the parties hereto.

 

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

 

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

 

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

 

ARTICLE TEN

 

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

Section 10.01.      Eligibility Requirements for Owner Trustee. 
The Owner Trustee shall at all times be a corporation satisfying the
provisions of Section 3807(a) of the Statutory Trust  Statute; authorized to exercise corporate trust powers; and (a)
having a combined capital and surplus of at least $50,000,000 and subject to
supervision or examination by federal or state authorities; and having (or
having a parent that has) a rating of at least Baa3 by Moody’s; or
(b) which the Rating Agencies have otherwise indicated in writing is an
entity acceptable to act as Owner Trustee hereunder.  If such corporation shall publish reports of condition at least
annually pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purpose of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  In case at any time the Owner Trustee shall
cease to be eligible in accordance with the provisions of this Section, the
Owner Trustee shall resign immediately in the manner and with the effect
specified in Section 10.02.

 

19

 

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

 

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

 

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

 

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

 

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

 

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

 

20

 

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

 

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

 

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

 

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

 

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

 

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

 

Any notice, request or other writing given to the
Owner Trustee shall be deemed to have been given to each of the then separate
trustees and co-trustees, as effectively as if given to each of them.  Every instrument appointing any separate
trustee or co-trustee shall refer to this Agreement and the conditions of this
Article.  Each separate trustee and
co-trustee, upon its acceptance of the trusts

 

21

 

conferred, shall be
vested with the estates or property specified in its instrument of appointment,
either jointly with the Owner Trustee or separately, as may be provided
therein, subject to all the provisions of this Agreement, specifically
including every provision of this Agreement relating to the conduct of,
affecting the liability of or affording protection to, the Owner Trustee.  Each such instrument shall be filed with the
Owner Trustee and a copy thereof given to the Administrator.

 

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

 

ARTICLE ELEVEN

 

MISCELLANEOUS

 

Section 11.01.      Supplements and Amendments.

 

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

 

(b)           This
Agreement may also be amended from time to time by the Trust Depositor, and the
Owner Trustee, with the consent of the Modified 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 the
Noteholders or the Certificateholder; provided, however, that no such amendment
shall increase or reduce in any manner the amount of, or accelerate or delay
the timing of, (i) collections of payments on Contracts or distributions that
shall be required to be made for the benefit of the Noteholders or the
Certificateholder, or (ii) eliminate the Certificateholder consent or reduce
the aforesaid percentage of the Outstanding Amount of the Notes required to
consent to any such amendment, without the consent of the Holder of all
outstanding Notes and the Trust Certificate.

 

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

 

(d)           Promptly
after the execution of any such amendment or consent, the Owner Trustee shall
furnish written notification of the substance of such amendment or consent to
each Certificateholder.  It shall not be
necessary for the consent of Certificateholder, Noteholders or the Indenture
Trustee pursuant to this Section to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve
the substance thereof.  The manner of

 

22

 

obtaining
such consents (and any other consents of the Certificateholder provided for in
this Agreement or in any other Transaction Document) and of evidencing the
authorization of the execution thereof by the Certificateholder shall be
subject to such reasonable requirements as the Owner Trustee may prescribe.

 

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

 

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

 

Section 11.02.      No Legal Title to Trust Estate in Owner. 
The Owner shall not have legal title to any part of the Trust
Estate.  The Owner shall be entitled to
receive distributions with respect to their undivided ownership interest herein
only in accordance with Articles Five and Nine.  No transfer, by operation of law or otherwise, of any right,
title or interest of the Owner to and in their ownership interest in the Trust
Estate shall operate to terminate this Agreement or the trusts hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Trust Estate.

 

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

 

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

 

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

 

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

 

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

 

23

 

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

 

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

 

Section 11.09.      No Petition.

 

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

 

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

 

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

 

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

 

Section 11.12.      Governing Law. 
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO

 

24

 

ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 11.13.      Trust Certificate Transfer Restrictions. 
The Trust Certificate may not be acquired by or for the account of a
Benefit Plan.  By accepting and holding
a Trust Certificate, the Holder thereof shall be deemed to have represented and
warranted that it is not a Benefit Plan and that it is not acquiring and will
not hold such Trust Certificate for the account of, or with plan assets of, a
Benefit Plan.

 

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

 

[signature page follows]

 

25

 

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

 

	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING

  CORP.,

  
	
   

  	
  as Trust Depositor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Perry A. Glassgow

  	
   

  
	
   

  	
  Printed  Name: 
  Perry A. Glassgow

  
	
   

  	
  Title:  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anita E. Dallago

  	
   

  
	
   

  	
  Printed  Name: 
  Anita E.  Dallago

  
	
   

  	
  Title:  Senior Financial Services Officer

  

 

Signature Page to Trust

Agreement

 

 

EXHIBIT A

 

FORM OF
CERTIFICATE OF TRUST OF

Harley-Davidson
Motorcycle Trust 2003-4

 

This Certificate of Trust of Harley-Davidson
Motorcycle Trust 2003-4 (the “Trust”), dated
                     ,
2003, is being duly executed and filed by Wilmington Trust Company, a Delaware
banking corporation, as Owner Trustee, to form a statutory trust under the
Delaware Statutory Trust Act (12 Del. Code, § 3801 et seq.).

 

1.             Name.  The name of the statutory trust formed
hereby is Harley-Davidson Motorcycle Trust 2003-4.

 

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

 

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

 

	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
  not in its individual
  capacity but solely as

  Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

EXHIBIT B

 

FORM OF TRUST
CERTIFICATE

 

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

 

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

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2003-4 CERTIFICATE

 

	
  NO.
                  

  	
   

  	
   

  	
  Initial Trust
  Certificate

  
	
   

  	
   

  	
   

  	
  Fractional Interest
  100%

  

 

THIS CERTIFIES THAT Harley-Davidson Customer Funding
Corp. is the registered owner of  100%
of the non-assessable, fully-paid, fractional undivided beneficial interest in
the Harley-Davidson Motorcycle Trust 2003-4 (the “Trust”) formed by
Harley-Davidson Customer Funding Corp., a Nevada corporation (the “Trust
Depositor”).

 

The Trust was created pursuant to a Trust Agreement,
dated as of October 1, 2003 (as amended and supplemented from time to time, the
“Trust
Agreement”), between the Trust Depositor, and Wilmington Trust
Company, as owner trustee (the “Owner Trustee”), a summary of certain of
the pertinent provisions of which is set forth below.  To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in (i) the Trust Agreement, (ii)
the Sale and Servicing Agreement, dated as of October 1, 2003 (the “Sale and
Servicing Agreement”), among the Trust, the Trust Depositor,
Harley-Davidson Credit Corp. (“Harley-Davidson Credit”), as Servicer (in
such capacity, the “Servicer”) and BNY Midwest Trust Company,
as Indenture Trustee (the “Indenture
Trustee”) or (iii) the Indenture, dated as of October 1, 2003 (the “Indenture”),
between the Trust and the Indenture Trustee.

 

This Trust Certificate is the duly authorized Trust
Certificate designated as “Harley-Davidson Motorcycle Trust 2003-4 Certificate”
 (the “Trust Certificate”).  Issued under the Indenture are three classes
of notes designated as “1.47% Harley-Davidson Motorcycle Contract Backed
Notes, Class A-1”, “2.69% Harley-Davidson Motorcycle Contract Backed Notes,
Class A-2” and “2.19% Harley-Davidson Motorcycle Contract Backed
Notes, Class B” (collectively, the “Notes”).  This Trust Certificate is issued under and
is subject to the terms, provisions and conditions of the Trust Agreement, to
which Trust Agreement the Holder of this Trust Certificate by virtue of its
acceptance hereof assents and by which

 

 

such Holder is
bound.  The property of the Trust
includes, among other things, (i) all the right, title and interest of the
Trust Depositor in and to the Contracts listed on the initial List of Contracts
delivered on the Closing Date (including, without limitation, all security
interests and all rights to receive payments which are collected pursuant
thereto after the Cutoff Date, including any liquidation proceeds therefrom,
but excluding any rights to receive payments which were collected pursuant
thereto on or prior to the Cutoff Date), (ii) all rights of the Trust Depositor
under any physical damage or other individual insurance policy (and rights
under a “forced
placed” policy, if any) or any debt cancellation agreement relating
to any such Contract, an Obligor or a Motorcycle securing such Contract, (iii)
all security interests in each such Motorcycle, (iv) all documents contained in
the related Contract Files, (v) all rights (but not the obligations) of the
Trust Depositor under any related motorcycle dealer agreements between dealers
(i.e., the originators of such Contracts) and Harley-Davidson Credit, (vi) all
rights of the Trust Depositor in the Lockbox, the Lockbox Account and related
Lockbox Agreement to the extent they relate to such Contracts, (vii) all rights
(but not the obligations) of the Trust Depositor under the Transfer and Sale
Agreement, including but not limited to the Trust Depositor’s rights under
Article V thereof, (viii) the remittances, deposits and payments made into the
Trust Accounts from time to time and amounts in the Trust Accounts from time to
time (and any investments of such amounts), (ix) all rights of the Trust
Depositor to certain rebates of premiums and other amounts relating to
insurance policies, debt cancellation agreements, extended service contracts or
other repair agreements and other items financed under such Contracts and (x)
all proceeds and products of the foregoing.

 

Under the Trust Agreement, there will be distributed
on the fifteenth day of each month or if such day is not a Business Day the
next succeeding Business Day commencing November 17, 2003 (each, a “Distribution
Date”) to the person in whose name this Trust Certificate is
registered as of the last Business Day immediately preceding the calendar month
in which such Distribution Date occurs (each, a “Record Date”), such
Certificateholder’s fractional undivided beneficial interest in the amount to
be distributed to the Certificateholder on such Distribution Date.

 

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

 

It is the intention of Harley-Davidson Credit, the
Servicer, the Trust Depositor, Owner Trustee, Indenture Trustee and the
Certificateholder that the Trust be disregarded as a separate entity pursuant
to Treasury Regulations Section 301.7701-3(b)(1)(ii) as in effect for periods
after January 1, 1997.  The Trust
Certificate constitutes the sole equity interest in the Trust and must at all
times be held by either the Trust Depositor or its transferee as sole
owner.  The Trust Depositor agrees not
to take any action inconsistent with such intended federal income tax
treatment.  Because for federal income
tax purposes the Trust will be disregarded as a separate entity, Trust items of
income, gain, loss and deduction for any month as determined for federal income
tax purposes shall be allocated entirely to the Trust Depositor (or subsequent
purchaser of the Trust Certificate) as the sole Certificateholder.

 

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

 

 

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

 

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

 

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

 

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

 

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

 

 

[REVERSE OF CERTIFICATE]

 

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

 

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

 

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

 

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

 

The obligations and responsibilities created by the
Trust Agreement and the Trust created thereby shall terminate upon the payment
to the Certificateholder of all amounts required to be paid to it pursuant to
the Trust Agreement and the Sale and Servicing Agreement and the disposition of
all property held as part of the Trust Estate. 
Harley-Davidson Credit may at its option purchase the Trust Estate at a
price specified in the Sale and Servicing Agreement, and such purchase of the
Contracts and other property of the Trust will affect early retirement of the
Trust Certificate; however, such right of purchase is exercisable only as of
any Distribution Date on which the Pool Balance has declined to less than 10%
of the initial Pool Balance on the Cutoff Date.

 

 

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

 

 

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

 

	
  Dated:

  	
  Harley-Davidson
  Motorcycle Trust 2003-4

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its individual

  capacity but solely as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  
					

 

OWNER TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

WILMINGTON
TRUST COMPANY,

not in its individual
capacity but solely

as Owner Trustee

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

 

ASSIGNMENT

 

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

 

PLEASE INSERT SOCIAL
SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

 

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

 

 

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

 

 

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

 

	
  Dated:

  	
   

  	
   

  
	
   

  
	
  Signature Guaranteed:

  

 

 

	
   

  	
   

  	
   

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

  	
   

  	
  NOTICE:  The signature to this assignment must
  correspond with the name of the registered owner as it appears on the face of
  the within Trust Certificate in every particular, without alteration or
  enlargement or any change whatever.EXHIBIT 4.20

 

 

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2003-4,

as Issuer,

 

 

and

 

 

BNY MIDWEST TRUST COMPANY,

not in its individual capacity but solely in its capacity

as Indenture Trustee

 

 

INDENTURE

 

Dated as of October 1, 2003

 

 

$187,000,000 1.47%  Harley-Davidson
Motorcycle Contract Backed Notes, Class A-1

 

$98,000,000 2.69% 
Harley-Davidson Motorcycle Contract Backed Notes, Class A-2

 

$15,000,000 2.19% 
Harley-Davidson Motorcycle Contract Backed Notes, Class B

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
  310(a)(1)

  	
   

  	
  6.11

  
	
  (a)(2)

  	
   

  	
  6.11

  
	
  (a)(3)

  	
   

  	
  6.10

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  6.11

  
	
  (b)

  	
   

  	
  6.08;
  6.11; 11.04

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
  6.13

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  7.01;
  7.02

  
	
  (b)

  	
   

  	
  7.02

  
	
  (c)

  	
   

  	
  7.02

  
	
  313(a)

  	
   

  	
  7.04

  
	
  (b)

  	
   

  	
  7.04

  
	
  (c)

  	
   

  	
  7.04

  
	
  (d)

  	
   

  	
  7.04

  
	
  314(a)

  	
   

  	
  7.03

  
	
  (b)

  	
   

  	
  3.06

  
	
  (c)(1)

  	
   

  	
  2.02;
  6.02; 11.01

  
	
  (c)(2)

  	
   

  	
  11.01

  
	
  (c)(3)

  	
   

  	
  11.01

  
	
  (d)

  	
   

  	
  11.01

  
	
  (e)

  	
   

  	
  11.01

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  6.01

  
	
  (b)

  	
   

  	
  6.05

  
	
  (c)

  	
   

  	
  6.01

  
	
  (d)

  	
   

  	
  5.12;
  6.01

  
	
  (e)

  	
   

  	
  5.14

  
	
  316(a)(1)(A)

  	
   

  	
  5.12

  
	
  (a)(1)(B)

  	
   

  	
  5.02

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  5.08

  
	
  (c)

  	
   

  	
  N.A.

  
	
  317(a)

  	
   

  	
  5.03;
  5.04

  
	
  (b)

  	
   

  	
  3.03

  
	
  318(a)

  	
   

  	
  11.18

  

 

*           N.A. means Not Applicable

*           This Cross-Reference Table shall not, for any
purpose, be deemed to be a part of the Indenture.

 

i

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE

  	
   

  	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  DEFINITIONS

  
	
  SECTION 1.02.

  	
   

  	
  INCORPORATION
  BY REFERENCE OF TRUST INDENTURE ACT

  
	
  SECTION
  1.03.

  	
   

  	
  RULES OF CONSTRUCTION

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  	
  THE NOTES

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  FORM

  
	
  SECTION 2.02.

  	
   

  	
  EXECUTION,
  AUTHENTICATION AND DELIVERY

  
	
  SECTION 2.03.

  	
   

  	
  TEMPORARY NOTES

  
	
  SECTION 2.04.

  	
   

  	
  REGISTRATION;
  REGISTRATION OF TRANSFER AND EXCHANGE

  
	
  SECTION 2.05.

  	
   

  	
  MUTILATED,
  DESTROYED, LOST OR STOLEN NOTES

  
	
  SECTION
  2.06.

  	
   

  	
  PERSONS DEEMED OWNER

  
	
  SECTION 2.07.

  	
   

  	
  PAYMENT
  OF PRINCIPAL AND INTEREST; DEFAULTED INTEREST.

  
	
  SECTION 2.08.

  	
   

  	
  CANCELLATION

  
	
  SECTION 2.09.

  	
   

  	
  BOOK-ENTRY NOTES

  
	
  SECTION
  2.10.

  	
   

  	
  NOTICES TO CLEARING AGENCY

  
	
  SECTION 2.11.

  	
   

  	
  DEFINITIVE NOTES

  
	
  SECTION
  2.12.

  	
   

  	
  RELEASE OF COLLATERAL

  
	
  SECTION 2.13.

  	
   

  	
  TAX TREATMENT

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  SECTION
  3.01.

  	
   

  	
  PAYMENT OF PRINCIPAL
  AND INTEREST

  
	
  SECTION
  3.02.

  	
   

  	
  MAINTENANCE OF OFFICE
  OR AGENCY

  
	
  SECTION
  3.03.

  	
   

  	
  MONEY FOR
  PAYMENTS TO BE HELD IN TRUST

  
	
  SECTION 3.04.

  	
   

  	
  EXISTENCE

  
	
  SECTION
  3.05.

  	
   

  	
  PROTECTION OF COLLATERAL

  
	
  SECTION
  3.06.

  	
   

  	
  OPINIONS AS TO COLLATERAL

  
	
  SECTION 3.07.

  	
   

  	
  PERFORMANCE
  OF OBLIGATIONS; SERVICING OF CONTRACTS

  
	
  SECTION 3.08.

  	
   

  	
  NEGATIVE COVENANTS

  
	
  SECTION
  3.09.

  	
   

  	
  ANNUAL STATEMENT AS
  TO COMPLIANCE

  
	
  SECTION
  3.10.

  	
   

  	
  ISSUER
  MAY CONSOLIDATE, ETC. ONLY ON CERTAIN TERMS

  
	
  SECTION
  3.11.

  	
   

  	
  SUCCESSOR OR TRANSFEREE

  
	
  SECTION 3.12.

  	
   

  	
  NO OTHER BUSINESS

  
	
  SECTION 3.13.

  	
   

  	
  NO BORROWING

  
	
  SECTION
  3.14.

  	
   

  	
  SERVICER’S OBLIGATIONS

  
	
  SECTION 3.15.

  	
   

  	
  GUARANTEES,
  LOANS ADVANCES AND OTHER LIABILITIES

  
	
  SECTION
  3.16.

  	
   

  	
  CAPITAL EXPENDITURES

  
	
  SECTION
  3.17.

  	
   

  	
  RESTRICTED PAYMENTS

  
	
  SECTION
  3.18.

  	
   

  	
  NOTICE OF EVENTS OF DEFAULT

  
	
  SECTION
  3.19.

  	
   

  	
  FURTHER INSTRUMENTS AND
  ACTS

  
	
  SECTION
  3.20.

  	
   

  	
  COMPLIANCE WITH LAWS

  

 

ii

 

	
  SECTION 3.21.

  	
   

  	
  AMENDMENTS
  OF SALE AND SERVICING AGREEMENT AND TRUST AGREEMENT

  
	
  SECTION
  3.22.

  	
   

  	
  REMOVAL OF ADMINISTRATOR

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  SATISFACTION
  AND DISCHARGE OF INDENTURE

  
	
  SECTION
  4.02.

  	
   

  	
  APPLICATION OF TRUST MONEY

  
	
  SECTION 4.03.

  	
   

  	
  REPAYMENT OF
  MONEYS HELD BY PAYING AGENT

  
	
  SECTION
  4.04.

  	
   

  	
  RELEASE OF COLLATERAL

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  	
  REMEDIES

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  EVENTS OF DEFAULT

  
	
  SECTION
  5.02.

  	
   

  	
  RIGHTS UPON EVENT OF
  DEFAULT

  
	
  SECTION 5.03.

  	
   

  	
  COLLECTION
  OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY INDENTURE TRUSTEE; AUTHORITY OF
  INDENTURE TRUSTEE

  
	
  SECTION 5.04.

  	
   

  	
  REMEDIES

  
	
  SECTION 5.05.

  	
   

  	
  OPTIONAL
  PRESERVATION OF THE CONTRACTS

  
	
  SECTION 5.06.

  	
   

  	
  PRIORITIES

  
	
  SECTION 5.07.

  	
   

  	
  LIMITATION OF SUITS

  
	
  SECTION 5.08.

  	
   

  	
  UNCONDITIONAL
  RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL AND INTEREST

  
	
  SECTION
  5.09.

  	
   

  	
  RESTORATION OF
  RIGHTS AND REMEDIES

  
	
  SECTION
  5.10.

  	
   

  	
  RIGHTS AND REMEDIES
  CUMULATIVE

  
	
  SECTION
  5.11.

  	
   

  	
  DELAY OR OMISSION NOT A
  WAIVER

  
	
  SECTION
  5.12.

  	
   

  	
  CONTROL BY NOTEHOLDERS

  
	
  SECTION
  5.13.

  	
   

  	
  WAIVER OF PAST DEFAULTS

  
	
  SECTION
  5.14.

  	
   

  	
  UNDERTAKING FOR COSTS

  
	
  SECTION
  5.15.

  	
   

  	
  WAIVER OF STAY OR
  EXTENSION LAWS

  
	
  SECTION 5.16.

  	
   

  	
  ACTION ON NOTES

  
	
  SECTION 5.17.

  	
   

  	
  PERFORMANCE
  AND ENFORCEMENT OF CERTAIN OBLIGATIONS

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  	
  THE INDENTURE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.01.

  	
   

  	
  DUTIES OF INDENTURE
  TRUSTEE.

  
	
  SECTION
  6.02.

  	
   

  	
  RIGHTS OF INDENTURE TRUSTEE.

  
	
  SECTION 6.03.

  	
   

  	
  INDIVIDUAL
  RIGHTS OF INDENTURE TRUSTEE

  
	
  SECTION
  6.04.

  	
   

  	
  INDENTURE TRUSTEE’S
  DISCLAIMER

  
	
  SECTION 6.05.

  	
   

  	
  NOTICE OF DEFAULTS

  
	
  SECTION 6.06.

  	
   

  	
  REPORTS BY
  INDENTURE TRUSTEE TO HOLDERS

  
	
  SECTION
  6.07.

  	
   

  	
  COMPENSATION AND INDEMNITY

  
	
  SECTION
  6.08.

  	
   

  	
  REPLACEMENT OF
  INDENTURE TRUSTEE

  
	
  SECTION 6.09.

  	
   

  	
  SUCCESSOR
  INDENTURE TRUSTEE BY MERGER

  
	
  SECTION 6.10.

  	
   

  	
  APPOINTMENT
  OF CO-INDENTURE TRUSTEE OR SEPARATE INDENTURE TRUSTEE

  
	
  SECTION 6.11.

  	
   

  	
  ELIGIBILITY

  
	
  SECTION 6.12.

  	
   

  	
  PENNSYLVANIA
  MOTOR VEHICLE SALES FINANCE ACT LICENSES

  
	
  SECTION 6.13.

  	
   

  	
  PREFERENTIAL
  COLLECTION OF CLAIMS AGAINST ISSUER

  

 

iii

 

	
  ARTICLE SEVEN

  	
   

  	
  NOTEHOLDERS’ LISTS AND REPORTS

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  ISSUER
  TO FURNISH INDENTURE TRUSTEE NAMES AND ADDRESSES OF NOTEHOLDERS

  
	
  SECTION 7.02.

  	
   

  	
  PRESERVATION
  OF INFORMATION: COMMUNICATION TO NOTEHOLDERS

  
	
  SECTION 7.03.

  	
   

  	
  REPORTS BY ISSUER

  
	
  SECTION
  7.04.

  	
   

  	
  REPORTS BY INDENTURE
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  	
  ACCOUNTS, DISBURSEMENTS AND RELEASES

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  COLLECTION OF MONEY

  
	
  SECTION 8.02.

  	
   

  	
  TRUST ACCOUNTS

  
	
  SECTION 8.03.

  	
   

  	
  GENERAL
  PROVISIONS REGARDING ACCOUNTS.

  
	
  SECTION 8.04.

  	
   

  	
  RELEASE OF COLLATERAL

  
	
  SECTION 8.05.

  	
   

  	
  OPINION OF COUNSEL

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  	
   

  	
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  SUPPLEMENTAL
  INDENTURES WITHOUT CONSENT OF NOTEHOLDERS

  
	
  SECTION 9.02.

  	
   

  	
  SUPPLEMENTAL
  INDENTURES WITH CONSENT OF NOTEHOLDERS

  
	
  SECTION 9.03.

  	
   

  	
  EXECUTION OF
  SUPPLEMENTAL INDENTURES

  
	
  SECTION
  9.04.

  	
   

  	
  EFFECT OF SUPPLEMENTAL
  INDENTURE

  
	
  SECTION
  9.05.

  	
   

  	
  CONFORMITY WITH
  TRUST INDENTURE ACT

  
	
  SECTION 9.06.

  	
   

  	
  REFERENCE
  IN NOTES TO SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  	
  REDEMPTION OF NOTES

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
   

  	
  REDEMPTION.

  
	
  SECTION
  10.02.

  	
   

  	
  FORM OF REDEMPTION NOTICE.

  
	
  SECTION
  10.03.

  	
   

  	
  NOTES PAYABLE ON
  REDEMPTION DATE

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
   

  	
  COMPLIANCE
  CERTIFICATES AND OPINIONS, ETC

  
	
  SECTION 11.02.

  	
   

  	
  FORM
  OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE

  
	
  SECTION
  11.03.

  	
   

  	
  ACTS OF NOTEHOLDERS.

  
	
  SECTION 11.04.

  	
   

  	
  NOTICES

  
	
  SECTION
  11.05.

  	
   

  	
  NOTICES TO NOTEHOLDERS;
  WAIVER

  
	
  SECTION 11.06.

  	
   

  	
  ALTERNATE
  PAYMENT AND NOTICE PROVISIONS

  
	
  SECTION 11.07.

  	
   

  	
  EFFECT OF
  HEADINGS AND TABLE OF CONTENTS

  
	
  SECTION 11.08.

  	
   

  	
  SUCCESSORS AND ASSIGNS

  
	
  SECTION 11.09.

  	
   

  	
  SEPARABILITY

  
	
  SECTION
  11.10.

  	
   

  	
  BENEFITS OF INDENTURE

  
	
  SECTION 11.11.

  	
   

  	
  LEGAL HOLIDAYS

  
	
  SECTION 11.12.

  	
   

  	
  GOVERNING LAW

  
	
  SECTION 11.13.

  	
   

  	
  COUNTERPARTS

  
	
  SECTION
  11.14.

  	
   

  	
  RECORDING OF INDENTURE

  
	
  SECTION 11.15.

  	
   

  	
  TRUST OBLIGATION

  
	
  SECTION 11.16.

  	
   

  	
  NO PETITION

  
	
  SECTION 11.17.

  	
   

  	
  INSPECTION

  
	
  SECTION
  11.18.

  	
   

  	
  CONFLICT WITH TRUST
  INDENTURE ACT

  
	
  SECTION
  11.19.

  	
   

  	
  DISCLAIMER AND
  SUBORDINATION

  

 

iv

 

EXHIBITS

 

	
  Exhibit A - Reserved

  
	
  Exhibit B - Form of Class
  A-1 Note

  
	
  Exhibit C - Form of Class
  A-2 Note

  
	
  Exhibit D - Form of Class B
  Note

  
	
  Exhibit E - Form of
  Assignment

  
	
  Exhibit F - Form of Note
  Depository Agreement

  

 

v

 

INDENTURE

 

Indenture,
dated as of October 1, 2003 (this “Indenture”), between Harley-Davidson
Motorcycle Trust 2003-4, a Delaware statutory trust (the “Issuer”) and BNY
Midwest Trust Company, in its capacity as indenture trustee (the “Indenture
Trustee”) and not in its individual capacity.

 

Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Issuer’s 1.47% Harley-Davidson
Motorcycle Contract Backed Notes, Class A-1 (the “Class A-1 Notes”), 2.69%
Harley-Davidson Motorcycle Contract Backed Notes, Class A-2 (the “Class A-2
Notes”) and 2.19% Harley-Davidson Motorcycle Contract Backed Notes, Class B
(the “Class B Notes”) and, together with the Class A-1 Notes and the Class B
Notes, the “Notes”):

 

GRANTING CLAUSE

 

The
Issuer hereby grants, transfers, assigns and otherwise conveys to the Indenture
Trustee on the Closing Date, on behalf of and for the benefit of the Holders of
the Notes, without recourse, all of the Issuer’s right, title and interest
(exclusive of the amount, if any, allocable to any rebatable insurance premium
financed by any Contract) in, to and under: (i) the Contracts secured by the
Motorcycles (which Contracts shall be listed in the List of Contracts); (ii)
certain monies due under the Contracts after the Cutoff Date, including,
without limitation, all payments of principal and interest with respect to any
Motorcycles to which a Contract relates received after the Cutoff Date and all
other proceeds received on or in respect of such Contracts (other than payments
of principal and interest due on or prior to the Cutoff Date); (iii) security
interests in the Motorcycles; (iv) amounts on deposit in the Collection
Account, the Note Distribution Account and the Reserve Fund, including all
Eligible Investments therein and all income from the investment of funds
therein and all proceeds therefrom; (v) proceeds from claims under certain
insurance policies or debt cancellation agreements in respect of individual
Motorcycles or obligors under the Contracts; (vi) its rights under the Sale and
Servicing Agreement; (vii) the protective security interest in certain of the
above-described property granted by the Trust Depositor in favor of the Issuer;
(viii) all present and future claims, demands, causes of and choses in action
in respect of any or all of the foregoing; (ix) all rights to certain rebates
of premiums and other amounts relating to insurance policies, debt cancellation
agreements, extended service contracts or other repair agreements and other
items financed under such Contracts and (x) all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all of the
foregoing, including all proceeds of the conversion, voluntary or involuntary,
into cash of other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and receivables, instruments and
other property which at any time constitute all or part of or are included in
the proceeds of any of the foregoing (as each such defined term is defined in
Section 1.01) (collectively, the “Collateral”).

 

 

The
foregoing Grant is made in trust to secure the payment of principal of and
interest on, and any other amounts owing in respect of, the Notes, equally and
ratably without prejudice, priority or distinction, except for the
subordination of the Class B Notes provided herein and all other sums owing by
the Issuer hereunder or under any other Transaction Document, and to secure
compliance with the provisions of this Indenture, all as provided in this
Indenture.

 

The
Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes,
acknowledges such Grant, accepts the trust under this Indenture in accordance
with the provisions of this Indenture and agrees to perform its duties required
in this Indenture in accordance with its terms and the terms of the other
Transaction Documents to which it is a party.

 

ARTICLE ONE

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01.        Definitions.

 

(a)           Except as otherwise
specified herein or as the context may otherwise require, the following terms
have the respective meanings set forth below for all purposes of this
Indenture.

 

“Act” shall have the meaning specified in
Section 11.03(a).

 

“Administration Agreement” means the Administration Agreement, dated as
of the date hereof, among the Administrator, the Issuer, the Trust Depositor
and the Indenture Trustee.

 

“Administrator” means Harley-Davidson Credit Corp. or any
successor Administrator under the Administration Agreement.

 

“Affiliate” means, with respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified
Person.  For the purposes of this
definition, “control” when used
with respect to any Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to
the foregoing.

 

“Authorized Officer” means, with respect to the Issuer, any
officer of the Owner Trustee who is authorized to act for the Owner Trustee in
matters relating to the Issuer and who is identified on the list of Authorized
Officers delivered by the Owner Trustee to the Indenture Trustee on the Closing
Date (as such list may be modified or supplemented from time to time
thereafter) and, so long as the Administration Agreement is in effect, any Vice
President or more senior officer of the Administrator who is authorized to act
for the Administrator in matters relating to the Issuer and to be acted upon by
the Administrator pursuant to the Administration Agreement and who is
identified on the list of Authorized

 

2

 

Officers delivered by the Administrator to
the Indenture Trustee on the Closing Date (as such list may be modified or
supplemented from time to time thereafter).

 

“Book Entry Notes” means a beneficial interest in the Notes,
ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.09.

 

“Business Day” means any day other than a Saturday, Sunday
or other day on which banking institutions in the city of Chicago, Illinois,
Wilmington, Delaware or New York, New York are authorized or obligated by law,
executive order or governmental decree to be closed.

 

“Certificate of Trust” means the Certificate of Trust of the Issuer
substantially in the form of Exhibit A
to the Trust Agreement.

 

“Class” means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

 

“Class A-1 Final Distribution Date” has the meaning set forth in the Sale and
Servicing Agreement.

 

“Class A-1 Rate” has the meaning set forth in the Sale and
Servicing Agreement.

 

 “Class A-1
Notes” means the
Class A-1 Notes, substantially in the form of Exhibit
B.

 

“Class A-2 Final Distribution Date” has the meaning set forth in the Sale and
Servicing Agreement.

 

“Class A-2 Rate” has the meaning set forth in the Sale and
Servicing Agreement.

 

“Class A-2 Notes” means the Class A-2 Notes, substantially in
the form of Exhibit C.

 

“Class B Final Distribution Date” has the meaning set forth in the Sale and
Servicing Agreement.

 

“Class B Rate” has the meaning set forth in the Sale and
Servicing Agreement.

 

“Class B Notes” means the Class B Notes, substantially in
the form of Exhibit D.

 

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

 

“Clearing Agency Participant” means a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing Agency
effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

 

“Closing Date” has the meaning set forth in
the Sale and Servicing Agreement.

 

3

 

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

 

“Collateral” means the Collateral Granted
to the Indenture Trustee under this Indenture, including all proceeds thereof.

 

“Commission” means the Securities and Exchange Commission.

 

“Corporate Trust Office” means the principal office of the Indenture
Trustee at which at any particular time its corporate trusts business shall be
administered which office at date of the execution of this Agreement is located
at 2 North LaSalle Street, Suite 1020, Chicago, Illinois 60602, Attention:
Corporate Trust Administration; or at such other address as the Indenture
Trustee may designate from time to time by notice to the Noteholders and the
Issuer, or the principal corporate trust office of any successor Indenture
Trustee (the address of which the successor Indenture Trustee will notify the
Noteholders and the Issuer).

 

“Default” means any occurrence that is, or with notice or the lapse of time or
both would become, an Event of Default.

 

“Definitive Notes” shall have the meaning specified in Section
2.09.

 

“Distribution Date” has the meaning set forth in the Sale and
Servicing Agreement.

 

“DTC” means The Depository Trust Company, and its successors and assigns.

 

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

 

“Event of Default” shall have the meaning specified in Section
5.01.

 

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

 

“Executive Officer” means, with respect to any corporation, the
Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Executive Vice President, any Vice President, the Secretary or the
Treasurer of such corporation; and with respect to any partnership, any general
partner thereof.

 

 “Grant” means mortgage, pledge, bargain, sell,
warrant, alienate, remise, release, convey, assign, transfer, create and grant
a lien upon and a security interest in and right of set-off against, deposit,
set over and confirm pursuant to this Indenture.  A Grant of the Collateral or of any other agreement or instrument
shall include all rights, powers and options (but none of the obligations) of
the granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest
payments in respect of the Collateral and all other moneys payable thereunder,
to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the
name of the granting party or otherwise and generally to do and receive
anything that the granting party is or may be entitled to do or receive
thereunder or with respect thereto.

 

4

 

“Harley-Davidson Credit” means Harley-Davidson Credit Corp., and its
successors and assigns.

 

“Holder” or “Noteholder” or “Note Owner” means, with respect to a
Book-Entry Note, the Person who is the owner of such Book-Entry Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly as a Clearing Agency
participant or as an indirect participant, in each case in accordance with the
rules of such Clearing Agency) and with respect to a Definitive Note the Person
in whose name a Note is registered on the Note Register.

 

“Indebtedness” means, with respect to any Person at any
time, (i) indebtedness or liability of such Person for borrowed money whether
or not evidenced by bonds, debentures, notes or other instruments, or for the
deferred purchase price of property or services (including trade obligations);
(ii) obligations of such Person as lessee under leases which should have been
or should be, in accordance with generally accepted accounting principles,
recorded as capital leases; (iii) current liabilities of such Person in respect
of unfunded vested benefits under plans covered by Title IV of ERISA; (iv)
obligations issued for or liabilities incurred on the account of such Person;
(v) obligations or liabilities of such Person arising under acceptance
facilities; (vi) obligations of such Person under any guaranties, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (vii) obligations of such Person secured by any lien on property or
assets of such Person, whether or not the obligations have been assumed by such
Person; or (viii) obligations of such Person under any interest rate or
currency exchange agreement.

 

“Indenture” means this Indenture, as amended or supplemented from time to time.

 

“Indenture Securities” means the Notes.

 

“Indenture Security Holder” means a Noteholder.

 

“Indenture Trustee” means BNY Midwest Trust Company, as Indenture
Trustee under this Indenture, or any successor Indenture Trustee under this
Indenture.

 

“Independent” means, when used with respect to any
specified Person, that the Person (i) is in fact independent of the Issuer, any
other obligor upon the Notes, the Trust Depositor, the Seller and any of their
respective Affiliates, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Seller or any of their respective Affiliates, and (iii) is not connected with
the Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

 

“Independent Certificate” means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.01, made by
an Independent appraiser or other expert appointed by an Issuer Order and
approved by the Indenture Trustee in the exercise of

 

5

 

reasonable care, and such opinion or
certificate shall state that the signer has read the definition of “Independent” in this Indenture and that
the signer is Independent within the meaning thereof.

 

“Interest Period” means, with respect to any Distribution Date
and any Class of Notes, the period from and including the fifteenth day of the
month of the Distribution Date immediately preceding such Distribution Date
(or, in the case of the first Distribution Date, from and including the Closing
Date) to but excluding the fifteenth day of the month of such Distribution
Date.

 

“Interest Rate” means the Class A-1 Rate, the Class A-2 Rate
and the Class B Rate, as applicable.

 

“Issuer” means Harley-Davidson Motorcycle Trust 2003-4 until a successor
replaces it and, thereafter, means the successor and, for purposes of any
provision contained herein and required by the TIA, each other obligor on the
Notes.

 

“Issuer Order” and “Issuer
Request” means a written order or request signed in the name of the
Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

 

“Note” means, as the context requires, a Class A-1 Note, a Class A-2 Note or
a Class B Note.

 

“Note Depository Agreement” means the agreement dated as of the Closing
Date, among the Issuer, the Administrator, the Indenture Trustee and DTC, as
the initial Clearing Agency, relating to the Notes, substantially in the form
of Exhibit F hereto.

 

“Note Register” and “Note
Registrar” have the respective meanings specified in Section 2.04.

 

“Officer’s Certificate” means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to,
the Indenture Trustee.  Unless otherwise
specified, any reference in this Indenture to an Officer’s Certificate shall be
to an Officer’s Certificate of any Authorized Officer of the Issuer.

 

“Opinion of Counsel” means one or more written opinions of
counsel who may, except as otherwise expressly provided in this Indenture, be
employees of or counsel to the Issuer and who shall be satisfactory to the
Indenture Trustee and which shall comply with any applicable requirements of
Section 11.01, and shall be in form and substance satisfactory to the Indenture
Trustee.

 

“Outstanding” means, as of the date of determination, all
Notes theretofore authenticated and delivered under this Indenture except:

 

6

 

(i)            Notes theretofore cancelled by the
Note Registrar or delivered to the Note Registrar for cancellation;

 

(ii)           Notes or portions thereof the payment
for which money in the necessary amount has been theretofore deposited with the
Indenture Trustee or any Paying Agent in trust for the Holders of such Notes (provided, however, that if such Notes are
to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision for such notice has been made, satisfactory to the
Indenture Trustee, has been made); and

 

(iii)          Notes in exchange for or in lieu of
other Notes which have been authenticated and delivered pursuant to this
Indenture unless proof satisfactory to the Indenture Trustee is presented that
any such Notes are held by a protected purchaser, within the meaning of § 8-303
of the UCC;

 

provided, however, that in determining whether the Holders of the requisite Outstanding
Amount have given any request, demand, authorization, direction, notice,
consent or waiver hereunder or under any other Transaction Document, Notes
owned by the Issuer, any other obligor upon the Notes, the Trust Depositor,
Harley-Davidson Credit or any of their respective Affiliates shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Notes that the Indenture Trustee knows to be so owned shall be so
disregarded.  Notes so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Indenture Trustee the pledgee’s right so
to act with respect to such Notes and that the pledgee is not the Issuer, any
other obligor upon the Notes, the Trust Depositor, Harley-Davidson Credit or
any of their respective Affiliates.

 

“Outstanding Amount” means the aggregate principal amount of all
Notes of one Class or of all Classes, as the case may be, Outstanding at the
date of determination.

 

“Owner Trustee” means Wilmington Trust Company, not in its
individual capacity but solely as Owner Trustee under the Trust Agreement, or
any successor trustee under the Trust Agreement.

 

“Paying Agent” means the Indenture Trustee or any other
Person that meets the eligibility standards for the Indenture Trustee specified
in Section 6.11 and is authorized by the Issuer to make the distributions from
the Note Distribution Account, including payment of principal of or interest on
the Notes on behalf of the Issuer.

 

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

 

“Plan” means an employee benefit plan, as defined in Section 3(3) of ERISA,
that is subject to Title I of ERISA or a plan, as defined in Section 4975(e)(1)
of the Code.

 

7

 

“Predecessor Note” means, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that evidenced
by such particular Note; and for the purpose of this definition, any Note
authenticated and delivered under Section 2.05 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

 

“Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding.

 

“Rating Agency” means each of Moody’s and Standard &
Poor’s.

 

“Rating Agency Condition” means, with respect to any action, that each
Rating Agency shall have been given ten days (or such shorter period as is
acceptable to each Rating Agency) prior notice thereof and that each Rating
Agency shall have notified the Trust Depositor, the Servicer and the Issuer in
writing that such action will not result in a qualification, reduction or
withdrawal of its then-current rating of any Class of Notes.

 

“Rating Event” means the qualification, reduction or
withdrawal by either Rating Agency of its then-current rating of any Class of
Notes.

 

“Record Date” means, with respect to a Redemption Date, the
close of business on the last Business Day of the immediately preceding month
and, with respect to a Distribution Date, the close of business on the day
immediately preceding such date.

 

“Redemption Date” means in the case of a redemption of the
Notes pursuant to Section 10.01(a) or a payment to Noteholders pursuant to
Section 10.01(b), the Distribution Date specified by the Servicer or the Issuer
pursuant to Section 10.01(a) or 10.01(b), as the case may be.

 

“Redemption Date Amount” means (i) in the case of a redemption of the
Notes pursuant to Section 10.01(a), an amount equal to the unpaid principal
amount of the Notes redeemed plus accrued and unpaid interest thereon at the
weighted average of the Interest Rate for each Class of Notes being so redeemed
to but excluding the Redemption Date, or (ii) in the case of a payment made to
Noteholders pursuant to Section 10.01(b), the amount on deposit in the Note
Distribution Account, but not in excess of the amount specified in clause (i)
above.

 

“Registered Holder” means the Person in whose name a Note is
registered on the Note Register on the applicable Record Date.

 

“Responsible Officer” means, with respect to the Indenture
Trustee, any officer within the Corporate Trust Office (or any successor group
of the Indenture Trustee), including any Vice President, assistant secretary or
other officer or assistant officer of the Indenture Trustee customarily
performing functions similar to those performed by the people who at such time
shall be officers, respectively, or to whom any corporate trust matter is
referred at the Corporate Trust Office of the Indenture Trustee because of his
knowledge of and familiarity with the particular subject.

 

8

 

“Sale and Servicing Agreement” means the Sale and Servicing Agreement,
dated as of the date hereof, among the Issuer, the Trust Depositor, the
Indenture Trustee and the Servicer.

 

“Seller”  means Harley-Davidson Credit,
in its capacity as Seller under the Transfer and Sale Agreement, and any
successors and assigns.

 

“Servicer” means Harley-Davidson Credit, in its capacity as Servicer under the
Sale and Servicing Agreement, and any Successor Servicer thereunder.

 

“Similar Law” means any foreign, federal, state or local
law with provisions substantially similar to Title I of ERISA or Section 4975
of the Code.

 

“State” means any one of the 50 states of the United States or any of its
territories, or the District of Columbia.

 

“Termination Date” means the date on which the I7ndenture
Trustee shall have received payment and performance of all amounts and
obligations which the Issuer may owe to or on behalf of the Indenture Trustee
for the benefit of the Noteholders under this Indenture or the Notes.

 

“Trust Agreement” means the Trust Agreement, dated as of
October 1, 2003, between the Trust Depositor and the Owner Trustee.

 

“Trust Depositor” shall mean Harley-Davidson Customer Funding
Corp., in its capacity as trust depositor under the Sale and Servicing
Agreement.

 

“Trust Indenture Act” or “TIA”
means the Trust Indenture Act of 1939, as amended.

 

“UCC” means the Uniform Commercial Code as in effect on the date hereof and
from time to time in the State of Illinois, provided that if by reason of
mandatory provisions of law, the perfection or the effect of perfection or
non-perfection or priority of the security interests in any collateral or the
availability of any remedy hereunder is governed by the Uniform Commercial Code
as in effect on or after the date hereof in any other jurisdiction, “UCC” means the Uniform Commercial Code as
in effect in such other jurisdiction for purposes of the provisions hereof
relating to such perfection or effect of perfection or non-perfection or
priority or availability of such remedy.

 

“United States” means the United States of America.

 

(b)           Except as otherwise
specified herein or as the context may otherwise require, capitalized terms
used herein that are not otherwise defined shall have the meanings ascribed thereto
in the Sale and Servicing Agreement.

 

Section 1.02.        Incorporation by Reference of Trust
Indenture Act.  Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a
part of this Indenture.  The following
TIA terms used in this Indenture have the following meanings:

 

9

 

“Commission” means the Securities and Exchange Commission.

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional
trustee” means the Indenture Trustee.

 

“obligor” on the indenture securities means the Issuer and any other obligor on
the indenture securities.

 

All
other TIA terms used in this Indenture that are defined by the TIA, defined by
TIA reference to another statute or defined by Commission rule have the meaning
assigned to them by such definitions.

 

Section 1.03.        Rules of Construction.  Unless the context otherwise
requires:

 

(i)              a term has the
meaning assigned to it;

 

(ii)             an accounting
term not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles as in effect from time to time;

 

(iii)            “or”
is not exclusive;

 

(iv)            “including” means including without limitation;

 

(v)             words in the
singular include the plural and words in the plural include the singular;

 

(vi)            any agreement,
instrument or statute defined or referred to herein or in any instrument or
certificate delivered in connection herewith means such agreement, instrument
or statute as from time to time amended, modified or supplemented and includes
(in the case of agreements or instruments) references to all attachments
thereto and instruments incorporated therein; references to a Person are also
to its permitted successors and assigns; and

 

(vii)           the words “hereof,”  “herein”
and “hereunder” and words of
similar import when used in this Indenture shall refer to this Indenture as a
whole and not to any particular provision of this Indenture; Section and
subsection references contained in this Indenture are references to Sections
and subsections in or to this Indenture unless otherwise specified.

 

10

 

ARTICLE TWO

 

THE NOTES

 

Section 2.01.        Form.  The Class A-1 Notes, the Class
A-2 Notes and the Class B Notes, in each case together with the Indenture
Trustee’s certificate of authentication, shall be in substantially the forms
set forth as Exhibits to this Indenture with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may, consistently
herewith, be determined by the officers executing such Notes, as evidenced by
their execution of the Notes.  Any
portion of the text of any Note may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Note.

 

Each
Note shall be dated the date of its authentication.  The terms of the Notes set forth in Exhibits hereto are part of
the terms of this Indenture.

 

Section 2.02.        Execution, Authentication and
Delivery.  The
Notes shall be executed on behalf of the Issuer by any of its Authorized
Officers.  The signature of any such
Authorized Officer on the Notes may be manual or facsimile.  Notes bearing the manual or facsimile signature
of individuals who were at any time Authorized Officers of the Issuer shall bind
the Issuer, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Notes or did
not hold such offices at the date of such Notes.

 

The
Indenture Trustee shall, upon receipt of an Issuer Order, authenticate and
deliver for original issue (i) Class A-1 Notes in an aggregate principal amount
of $187,000,000, (ii) Class A-2 Notes in an aggregate principal amount of
$98,000,000 and (iii) Class B Notes in an aggregate principal amount of
$15,000,000.  The aggregate principal
amount of such Classes of Notes Outstanding at any time may not exceed such
respective amounts, except as otherwise provided in Section 2.05.

 

Each
Note shall be dated the date of its authentication.  The Notes shall be issuable as registered Notes in the minimum
denomination of $1,000 and in integral multiples of $1,000 in excess thereof.

 

No
Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose, unless there appears on such Note a certificate of
authentication substantially in the form provided for herein by the Indenture
Trustee by the manual signature of one of its authorized signatories, and such
certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder.

 

Section 2.03.        Temporary Notes.  Pending the preparation of
Book-Entry Notes or Definitive Notes, the Issuer may execute, and upon receipt
of an Issuer Order the Indenture Trustee shall authenticate and deliver,
temporary Notes that are printed, lithographed, typewritten, mimeographed or
otherwise produced, of the tenor of the definitive Notes in

 

11

 

lieu of which they are issued
and with such variations not inconsistent with the terms of this Indenture as
the officers executing such Notes may determine, as evidenced by their
execution of such Notes.

 

If
temporary Notes are issued, the Issuer will cause Book-Entry Notes or Definitive
Notes to be prepared without unreasonable delay.  After the preparation of Book-Entry Notes or Definitive Notes,
the temporary Notes shall be exchangeable for Book-Entry Notes or Definitive
Notes upon surrender of the temporary Notes at the office or agency of the
Issuer to be maintained as provided in Section 3.02, without charge to the
Holder.  Upon surrender for cancellation
of any one or more temporary Notes, the Issuer shall execute and the Indenture
Trustee shall authenticate and deliver in exchange therefor a like tenor and
principal amount of definitive Notes of authorized denominations.  Until so exchanged, the temporary Notes
shall in all respects be entitled to the same benefits under this Indenture as
Book-Entry Notes or Definitive Notes.

 

Section 2.04.        Registration; Registration of
Transfer and Exchange.  The Issuer shall cause to be
kept a register (the “Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Note Registrar shall provide for the
registration of Notes and the registration of transfers of Notes.  The Indenture Trustee shall be “Note
Registrar” for the purpose of registering Notes and transfers of Notes as
herein provided.  Upon any resignation
of any Note Registrar, the Issuer shall promptly appoint a successor or, if it
elects not to make such an appointment, assume the duties of Note Registrar.

 

If
a Person other than the Indenture Trustee is appointed by the Issuer as Note
Registrar, the Issuer will give the Indenture Trustee prompt written notice of
the appointment of such Note Registrar and of the location, and any change in
the location, of the Note Register, and the Indenture Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee shall have the right to rely upon a
certificate executed on behalf of the Note Registrar by an Executive Officer
thereof as to the names and addresses of the Holders of the Notes and the
principal amounts and the amounts and number of such Notes.

 

Upon
surrender for registration of transfer of any Note at the office or agency of
the Issuer to be maintained as provided in Section 3.02, the Issuer shall
execute, and the Indenture Trustee shall authenticate and the Noteholder shall
obtain from the Indenture Trustee, in the name of the designated transferee or
transferees, one or more new Notes of the same Class in any authorized
denominations, of a like aggregate principal amount.

 

At
the option of the Holder, Notes may be exchanged for other Notes of the same
Class in any authorized denominations, of a like aggregate principal amount,
upon surrender of the Notes to be exchanged at such office or agency.  Whenever any Notes are so surrendered for exchange,
the Issuer shall execute, and the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, the Notes which the
Noteholder making the exchange is entitled to receive.

 

All
Notes issued upon any registration of transfer or exchange of Notes shall be the
valid obligations of the Issuer, evidencing the same debt, and entitled to the
same benefits

 

12

 

under this Indenture, as the Notes
surrendered upon such registration of transfer or exchange.

 

Every
Note presented or surrendered for registration of transfer or exchange shall be
duly endorsed by, or be accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder thereof or
such Holder’s attorney duly authorized in writing, with such signature
guaranteed by a commercial bank or trust company located, or having a
correspondent located in the city in which the Corporate Trust Office is
located, or by a member firm of a national securities exchange, and such other
documents as the Indenture Trustee may require.

 

No
service charge shall be made to a Holder for any registration of transfer or
exchange of Notes, but the Issuer or the Indenture Trustee may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of Notes,
other than exchanges pursuant to Section 2.03 not involving any transfer.

 

Each
Person that acquires a Note shall be required to represent, or in the case of a
Note in book-entry form, will be deemed to represent by its acceptance of the
Note, that (i) it is not, and is not acquiring the Note on behalf of or with
“plan assets” (as determined under Department of Labor Regulation Section
2510.3-101 or otherwise) of a Plan, or any employee benefit plan subject to
Similar Law, or (ii) its acquisition and holding of the Note do not give rise
to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code, or any Similar Law. 
Any transfer with respect to which the representation in clause (i) or
(ii) above is not true shall be void ab
initio.

 

The
Notes may not be purchased with the assets of a Plan if the Issuer, the
Indenture Trustee, the Owner Trustee, the Servicer or the Underwriters or any
of their affiliates has investment or administrative discretion with respect to
those Plan assets; has authority or responsibility to give, or regularly gives,
investment advice with respect to those Plan assets for a fee and pursuant to
an agreement or understanding that the advice will serve as a primary basis for
investment decisions with respect to those Plan assets and will be based on the
particular investment needs for the Plan; or is an employer maintaining or
contributing to the Plan.

 

The
preceding provisions of this Section notwithstanding, the Issuer shall not be
required to make and the Note Registrar need not register transfers or
exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for any payment with respect to the Note.

 

(i)            the Note Registrar and the Trustee
will be entitled to deal with the Clearing Agency for all purposes of this
Indenture (including the payment of principal of and interest on the Notes and
the giving of instructions or directions hereunder) as the sole holder of the
Notes, and shall have no obligation to the Noteholders;

 

(ii)           the rights of Noteholders will be
exercised only through the Clearing Agency and will be limited to those
established by law and agreements between such Noteholders

 

13

 

and the Clearing Agency and/or the Clearing
Agency Participants pursuant to the Depository Agreement;

 

(iii)          whenever this Indenture requires or
permits actions to be taken based upon instructions or directions of Holders of
Notes evidencing a specified percentage of the Outstanding Amount of the Notes,
the Clearing Agency will be deemed to represent such percentage only to the
extent that it has received instructions to such effect from Noteholders and/or
Clearing Agency Participants owning or representing, respectively, such
required percentage of the beneficial interest in the Notes and has delivered
such instructions to the Trustee; and

 

(iv)          without the consent of the Issuer and
the Trustee, no such Note may be transferred by the Depository except to a
successor Depository that agrees to hold such Note for the account of the
Owners or except upon the election of the Owner thereof or a subsequent transferee
to hold such Note in physical form.

 

Neither
the Trustee nor the Registrar shall have any responsibility to monitor or
restrict the transfer of beneficial ownership in any Note an interest in which
is transferable through the facilities of the Depository.

 

Section 2.05.        Mutilated, Destroyed, Lost or Stolen
Notes.  If (i) any mutilated Note is surrendered to
the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is
delivered to the Indenture Trustee such security or indemnity as may be
required by them to hold the Issuer and the Indenture Trustee harmless, then,
in the absence of notice to the Issuer, the Note Registrar or the Indenture
Trustee that such Note has been acquired by a protected purchaser, within the
meaning of § 8-303 of the UCC, the Issuer shall execute and upon its request
the Indenture Trustee shall authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note
of the same Class and denomination; provided, however, that if any such
destroyed, lost or stolen Note, but not a mutilated Note, shall have become or
within seven days shall be due and payable, or shall have been called for redemption,
instead of issuing a replacement Note, the Issuer may pay such destroyed, lost
or stolen Note when so due or payable or upon the Redemption Date without
surrender thereof.  If, after the
delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, a protected purchaser,
within the meaning of § 8-303 of the UCC, of the original Note in lieu of which
such replacement Note was issued presents for payment such original Note, the Issuer,
and the Indenture Trustee shall be entitled to recover such replacement Note
(or such payment) from the Person to whom it was delivered or any Person taking
such replacement Note from such Person to whom such replacement Note was
delivered or any assignee of such Person, except a protected purchaser, within
the meaning of § 8-303 of the UCC, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Issuer or the Indenture Trustee in connection
therewith.

 

Upon
the issuance of any replacement Note under this Section, the Issuer or the
Indenture Trustee may require the payment by the Holder of such Note of a sum
sufficient to

 

14

 

cover any tax or other governmental charge
that may be imposed in relation thereto and any other reasonable expenses
(including the fees and expenses of the Indenture Trustee or the Note
Registrar) connected therewith.

 

Every
replacement Note issued pursuant to this Section in replacement of any
mutilated, destroyed, lost of stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

 

The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

 

Section 2.06.        Persons Deemed Owner.  Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, and
any of their respective agents may treat the Person in whose name any Note is
registered (as of the day of determination) as the owner of such Note for the
purpose of receiving payments of principal of and interest, if any, on such
Note and for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Issuer, the Indenture Trustee nor any of their
respective agents shall be affected by notice to the contrary.

 

Section 2.07.        Payment of Principal and Interest;
Defaulted Interest.

 

(a)           Each Class of Notes
shall accrue interest at the related Interest Rate, and such interest shall be
payable on each Distribution Date as specified therein, subject to Section
3.01.  Any installment of interest or
principal, if any, payable on any Note which is punctually paid or duly
provided for by the Issuer on the applicable Distribution Date shall be paid to
the Person in whose name such Note (or one or more Predecessor Notes) is
registered on the Record Date, by wire transfer in immediately available funds
to the account designated by such nominee and except for the final installment
of principal payable with respect to such Note on a Distribution Date or on the
related Final Distribution Date, as the case may be (and except for the
Redemption Price for any Note called for redemption pursuant to Section
10.01(a)), which shall be payable as provided below.  The funds represented by any such checks returned undelivered
shall be held in accordance with Section 3.03.

 

(b)           The principal of
each Note shall be payable on each Distribution Date to the extent provided in
the form of the related Note set forth as an Exhibit hereto.  Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable, if not
previously paid, on the date on which the maturity of the Notes has been
accelerated in the manner provided in Section 5.02.  All principal payments on each Class of Notes shall be made pro
rata to the Noteholders of such Class entitled thereto.  The Indenture Trustee shall notify the
Person in whose name a Note is registered at the close of business on the
Record Date preceding the Distribution Date on which the Issuer expects that
the final installment of principal of and interest on such Note will be paid.  Such notice shall be mailed within five
Business Days of receipt of notice of termination of the Trust

 

15

 

pursuant to Section 9.01(c)
of the Trust Agreement and shall specify that such final installment will be
payable only upon presentation and surrender of such Note and shall specify the
place where such Note may be presented and surrendered for payment of such
installment.  Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section
10.02.

 

(c)           If the Issuer
defaults in a payment of interest on the Notes, the Issuer shall pay defaulted
interest (plus interest on such defaulted interest to the extent lawful) at the
applicable Interest Rate in any lawful manner. 
The Issuer may pay such defaulted interest to the Persons who are
Noteholders on a subsequent special record date, which date shall be at least
five Business Days prior to the related payment date.  The Issuer shall fix or cause to be fixed any such special record
date and payment date and, at least 15 days before any such special record
date, the Issuer shall mail to the Indenture Trustee and each Noteholder a
notice that states the special record date, the payment date and the amount of
defaulted interest to be paid.

 

Section 2.08.        Cancellation.  All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee.  The Issuer may at any time deliver to the
Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly cancelled by the Indenture
Trustee.  No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section, except as expressly permitted by this Indenture.  All cancelled Notes may be held or disposed
of by the Indenture Trustee in accordance with its standard retention or
disposal policy as in effect at the time unless the Issuer shall direct by an
Issuer Order that they be destroyed or returned to it; provided that such
Issuer Order is timely and the Notes have not been previously disposed of by
the Indenture Trustee.

 

Section 2.09.        Book-Entry Notes.  The Notes, upon original
issuance, will be issued in the form of a typewritten Note or Notes
representing the Book-Entry Notes, to be delivered to DTC, the initial
Depository, by, or on behalf of, the Issuer. 
Such Notes shall initially be registered on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no
Noteholder will receive a Definitive Note representing such Noteholder’s
interest in such Note, except as provided in Section 2.11.  Unless and until definitive, fully
registered Notes (the “Definitive Notes”) have been issued to Noteholders
pursuant to Section 2.11:

 

(i)                 the
provisions of this Section shall be in full force and effect;

 

(ii)                the
Note Registrar and the Indenture Trustee shall be entitled to deal with the
Clearing Agency for all purposes of this Indenture (including the payment of
principal of and interest on the Notes and the giving of instructions or directions
hereunder) as the sole holder of the Notes, and shall have no obligation to the
Noteholders;

 

16

 

(iii)               to
the extent that the provisions of this Section conflict with any other
provisions of this Indenture, the provisions of this Section shall control;

 

(iv)              the
rights of Noteholders shall be exercised only through the Clearing Agency and
shall be limited to those established by law and agreements between such
Noteholders and the Clearing Agency and/or the Clearing Agency
Participants.  Pursuant to the Note
Depository Agreement, unless and until Definitive Notes are issued pursuant to
Section 2.11, the Clearing Agency will make book-entry transfers among the
Clearing Agency Participants and receive and transmit payments of principal of
and interest on the Notes to such Clearing Agency Participants; and

 

(v)               whenever
this Indenture requires or permits actions to be taken based upon instructions
or directions of Noteholders evidencing a specified percentage of the
Outstanding Amount, the Clearing Agency shall be deemed to represent such
percentage only to the extent that it has received instructions to such effect
from Noteholders and/or Clearing Agency Participants owning or representing,
respectively, such required percentage of the beneficial interest in the Notes
and has delivered such instructions to the Indenture Trustee.

 

Section 2.10.        Notices to Clearing Agency.  Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Noteholders pursuant to
Section 2.11, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Noteholders of the Notes to the
Clearing Agency, and shall have no obligation to the Noteholders.

 

Section 2.11.        Definitive Notes.  If (i)(A) the Administrator
advises the Indenture Trustee in writing that the Clearing Agency is no longer
willing or able to properly discharge its responsibilities as described in the
Note Depository Agreement, and (B) Indenture Trustee or the Administrator is
unable to locate a qualified successor, (ii) the Administrator at its option
advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency, or (iii) after the occurrence of
an Event of Default, the Modified Required Holders advise the Indenture Trustee
and the Clearing Agency through the Clearing Agency Participants in writing
that the continuation of a book-entry system through the Clearing Agency is no
longer in the best interests of the related Noteholders, then the Indenture
Trustee shall notify all Noteholders of the related Class or Classes of Notes,
through the Clearing Agency, of the occurrence of any such event and of the
availability of Definitive Notes of the related Class of Notes to Noteholders
requesting the same.  Upon surrender to
the Indenture Trustee of the Note or Notes representing the Book-Entry Notes by
the Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Clearing Agency.  None of the Issuer, the Note Registrar or
the Indenture Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying
on, such instructions.  Upon the
issuance of Definitive Notes of a Class, the Indenture Trustee shall recognize
the Noteholders of the Definitive Notes as Noteholders hereunder.

 

17

 

The
Indenture Trustee shall not be liable if the Indenture Trustee or the
Administrator is unable to locate a qualified successor Clearing Agency.  The Definitive Notes shall be typewritten,
printed, lithographed or engraved or produced by any combination of these
methods (with or without steel engraved borders), all as determined by the
officers executing such Notes, as evidenced by their execution of such Notes.

 

Section 2.12.        Release of Collateral.  Subject to Sections 4.04,
8.04 and 11.01 and the terms of the Transaction Documents, the Indenture
Trustee shall release property from the lien of this Indenture only upon
receipt of an Issuer Request accompanied by an Officer’s Certificate.

 

Section 2.13.        Tax Treatment.  The Issuer and the purchasers of the Notes
intend, and will take all actions consistent with the intention, that the Notes
be treated as indebtedness which is solely secured by the Collateral for all
federal, state, local, and foreign income and franchise tax purposes and that,
pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii) as in effect for
periods after January 1, 1997, the Trust be disregarded as a separate entity
from the Trust Depositor for federal income tax purposes.  The Issuer, by entering into this Indenture,
and each Noteholder, by its acceptance of its Note agree to treat the Notes for
federal, state and local income, single business and franchise tax purposes as
indebtedness of the Issuer.

 

ARTICLE THREE

 

COVENANTS

 

Section 3.01.        Payment of Principal and Interest.  The
Issuer will duly and punctually pay the principal of and interest, if any, on
the Notes in accordance with the terms of the Notes and this Indenture.  Without limiting the foregoing, subject to
Section 8.02(c), the Issuer and the Indenture Trustee will cause to be
deposited into the Note Distribution Account amounts allocated pursuant to
Section 7.05 of the Sale and Servicing Agreement, and cause to be distributed
all such amounts on a Distribution Date as deposited therein (i) for the
benefit of the Class A-1 Notes, to the Class A-1 Noteholders, (ii) for the
benefit of the Class A-2 Notes, to the Class A-2 Noteholders and (iii) for the
benefit of the Class B Notes, to the Class B Noteholders, in each case as
further specified herein.  Amounts
properly withheld under the Code by any Person from a payment to any Noteholder
of interest and/or principal shall be considered as having been paid by the
Issuer to such Noteholder for all purposes of this Indenture.

 

Section 3.02.        Maintenance of Office or Agency.  The
Issuer will maintain in Wilmington, Delaware, an office or agency where Notes
may be surrendered for registration of transfer or exchange, and where notices
and demands to or upon the Issuer in respect of the Notes and this Indenture
may be served.  The Issuer hereby
initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes.  The Issuer will
give prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency.  If at any time the Issuer shall fail to maintain any such office
or agency or shall fail to furnish the Indenture Trustee with the address
thereof,

 

18

 

such surrenders, notices and
demands may be made or served at the Corporate Trust Office, and the Issuer
hereby appoints the Indenture Trustee as its agent to receive all such
surrenders, notices and demands.

 

Section 3.03.        Money for Payments to be Held in Trust.  As
provided in Section 8.02, all payments of amounts due and payable with respect
to any Notes that are to be made from amounts withdrawn from the Collection
Account and the Note Distribution Account pursuant to Section 8.02(b) shall be
made on behalf of the Issuer by the Indenture Trustee or by another Paying
Agent, and no amounts so withdrawn from the Collection Account and the Note
Distribution Account for payments of Notes shall be paid over to the Issuer except
as provided in this Section.

 

On
or before the Business Day immediately preceding each Distribution Date and
Redemption Date, the Issuer shall deposit or cause to be deposited in the Note
Distribution Account an aggregate sum sufficient to pay the amounts then
becoming due, such sum to be held in trust for the benefit of the Persons
entitled thereto and (unless the Paying Agent is the Indenture Trustee) shall
promptly notify the Indenture Trustee of its action or failure so to act.

 

The
Issuer will cause each Paying Agent other than the Indenture Trustee to execute
and deliver to the Indenture Trustee an instrument in which such Paying Agent
shall agree with the Indenture Trustee (and if the Indenture Trustee acts as
Paying Agent, it hereby so agrees), subject to the provisions of this Section,
that such Paying Agent will:

 

(i)            hold all sums held by it for the
payment of amounts due with respect to the Notes in trust for the benefit of
the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and pay such sums to such Persons as
herein provided;

 

(ii)           give the Indenture Trustee notice of
any default by the Issuer (or any other obligor upon the Notes) in the making
of any payment required to be made with respect to the Notes;

 

(iii)          at any time during the continuance of
any such default, upon the written request of the Indenture Trustee, forthwith
pay to the Indenture Trustee all sums so held in trust by such Paying Agent;

 

(iv)          immediately resign as a Paying Agent
and forthwith pay to the Indenture Trustee all sums held by it in trust for the
payment of Notes if at any time it ceases to meet the standards required to be
met by a Paying Agent at the time of its appointment; and

 

(v)           comply with all requirements of the
Code with respect to the withholding from any payments made by it on any Notes
of any applicable withholding taxes imposed thereon and with respect to any
applicable reporting requirements in connection therewith.

 

19

 

The
Issuer may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, by Issuer Order direct
any Paying Agent to pay to the Indenture Trustee all sums held in trust by such
Paying Agent, such sums to be held by the Indenture Trustee upon the same
trusts as those upon which the sums were held by such Paying Agent; and upon
such payment by any Paying Agent to the Indenture Trustee, such Paying Agent
shall be released from all further liability with respect to such money.

 

Subject
to applicable laws with respect to escheat of funds, any money held by the
Indenture Trustee or any Paying Agent in trust for the payment of any amount
due with respect to any Note and remaining unclaimed for two years after such
amount has become due and payable shall be discharged from such trust and upon
receipt of an Issuer Request shall be deposited by the Indenture Trustee in the
Collection Account; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuer for payment thereof, and
all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided,
however, that if such money or any portion thereof had been
previously deposited by the Issuer with the Indenture Trustee for the payment
of principal or interest on the Notes; and provided,
further, that the Indenture Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Issuer
cause to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in The
City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to or for the account of the Issuer. 
The Indenture Trustee may also adopt and employ, at the expense of the
Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to Holders
whose Notes have been called but not have not been surrendered for redemption
or whose right to or interest in moneys due and payable but not claimed is
determinable from the records of the Indenture Trustee or of any Paying Agent,
at the last address of record for each such Holder).

 

Section 3.04.        Existence.  The
Issuer will keep in full effect its existence, rights and franchises as a
statutory trust under the laws of the State of Delaware (unless it becomes, or
any successor Issuer hereunder is or becomes, organized under the laws of any
other state or of the United States, in which case the Issuer will keep in full
effect its existence, rights and franchises under the laws of such other
jurisdiction) and will obtain and preserve its qualification to do business in
each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Indenture, the Notes, the
Collateral and each other instrument or agreement included in the Collateral.

 

Section 3.05.        Protection of Collateral.  The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Indenture
Trustee on behalf of the Noteholders to be prior to all other liens in respect
of the Collateral, and the Issuer shall take all actions necessary to obtain
and maintain, for the benefit of the Indenture Trustee on behalf of the
Noteholders, a first lien on and a first priority, perfected security interest
in the Collateral.  The Issuer will from
time to time execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments

 

20

 

of further assurance and
other instruments, all as prepared by the Servicer and delivered to the Issuer,
and will take such other action necessary or advisable to:

 

(i)            Grant more effectively all or any
portion of the Collateral;

 

(ii)           maintain or preserve the lien and
security interest (and the priority thereof) created by this Indenture or carry
out more effectively the purposes hereof;

 

(iii)          perfect, publish notice of or protect
the validity of any Grant made or to be made by this Indenture;

 

(iv)          enforce any of the Collateral;

 

(v)           preserve and defend title to the
Collateral and the rights of the Indenture Trustee and the Noteholders in such
Collateral against the claims of all persons and parties; and

 

(vi)          pay all taxes or assessments levied or
assessed upon the Collateral when due.

 

The
Issuer shall file the initial financing statements on Form UCC1.  The Issuer hereby authorizes the Indenture
Trustee to file all continuation statements or other instruments required to be
executed pursuant to this Section and hereby designates the Indenture Trustee
its agent and attorney-in-fact for such purpose.

 

Section 3.06.        Opinions as to Collateral.  On the Closing Date, the Issuer shall furnish to the Indenture Trustee
an Opinion of Counsel to the effect that, in the opinion of such counsel,
either (i) all financing statements and continuation statements have been
executed and filed that are necessary to create and continue the Indenture
Trustee’s first priority perfected security interest in the Collateral for the
benefit of the Noteholders, and reciting the details of such filings or (ii) no
such action shall be necessary to perfect such security interest.

 

Section 3.07.        Performance of Obligations;
Servicing of Contracts.

 

(a)           The Issuer will not
take any action and will use its best efforts not to permit any action to be
taken by others that would release any Person from any such Person’s material
covenants or obligations under any instrument or agreement included in the
Collateral or that would result in the amendment, hypothecation, subordination,
termination or discharge of, or impair the validity or effectiveness of, any
such instrument or agreement, except as expressly provided in the Transaction
Documents or such other instrument or agreement.

 

(b)           The Issuer may
contract with other Persons to assist it in performing its duties and
obligations under this Indenture, and any performance of such duties by a
Person identified to the Indenture Trustee in an Officer’s Certificate shall be
deemed to be action taken by the Issuer. 
The Indenture Trustee shall not be responsible for the action or
inaction

 

21

 

of the Servicer or the
Administrator.  Initially, the Issuer
has contracted with the Servicer and the Administrator to assist the Issuer in
performing its duties under this Indenture.

 

(c)           The Issuer will
punctually perform and observe all of its obligations and agreements contained
in this Indenture, the other Transaction Documents and in the instruments and
agreements included in the Collateral, including but not limited to filing or
causing to be filed all UCC financing statements and continuation statements
required to be filed by the terms of this Indenture and the Sale and Servicing
Agreement in accordance with and within the time periods provided for herein
and therein.  Except as otherwise
expressly provided therein, the Issuer shall not waive, amend, modify,
supplement or terminate any Transaction Document or any provision thereof
without the consent of the Indenture Trustee or the Required Holders.

 

(d)           If the Issuer shall
have knowledge of the occurrence of an Event of Termination, the Issuer  shall promptly notify the Indenture Trustee
and each Rating Agency thereof.  Upon
any termination of the Servicer’s rights and powers pursuant to the Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee.  As soon as a Successor Servicer is
appointed, the Issuer shall notify the Indenture Trustee and the Rating
Agencies of such appointment, specifying in such notice the name and address of
such Successor Servicer.

 

(e)           The Issuer agrees
that it will not waive timely performance or observance by the Servicer or the
Seller of their respective duties under the Transaction Documents if the effect
thereof would adversely affect the Holders of the Notes.

 

Section 3.08.        Negative Covenants.  Until the Termination Date,
the Issuer shall not:

 

(i)            except as expressly permitted by the
Transaction Documents, sell, transfer, exchange or otherwise dispose of any of
the properties or assets of the Issuer, including those included in the
Collateral, unless directed to do so by the Indenture Trustee;

 

(ii)           claim any credit on, or make any
deduction from the principal or interest payable in respect of, the Notes
(other than amounts properly withheld from such payments under the Code or
applicable state law) or assert any claim against any present or former
Noteholder by reason of the payment of the taxes levied or assessed upon any
part of the Collateral;

 

(iii)          (A) 
permit the validity or effectiveness of this Indenture to be impaired,
or permit the lien created by this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released
from any covenant; or obligations with respect to the Notes under this
Indenture except as may be expressly permitted hereby, (B) permit any lien,
charge, excise, claim, security interest, mortgage or other encumbrance (other
than the lien of this Indenture) to be created on or extend to or otherwise
arise upon or burden the Collateral or any part thereof or any interest therein
or the proceeds thereof (other than tax liens, mechanics’ liens and other liens
that arise by operation of law, in each case on a Motorcycle and arising solely
as a result of an action or omission of the related Obligor), (C) permit the
lien created by this Indenture not

 

22

 

to constitute a valid first priority (other
than with respect to any such tax, mechanics’ or other lien) security interest
in the Collateral, or (D) amend, modify or fail to comply with the provisions
of the Transaction Documents without the prior written consent of the Indenture
Trustee, except where the Transaction Documents allow for amendment or
modification without the consent or approval of the Indenture Trustee;

 

(iv)          dissolve or liquidate in whole or in
part; or

 

(v)           change its name or state of
formation.

 

Section 3.09.        Annual Statement as to Compliance.  The
Issuer will deliver to the Indenture Trustee, on or before January 31 of each
year commencing January 31, 2004, an Officer’s Certificate stating, as to the
Authorized Officer signing such Officer’s Certificate, that:

 

(i)            a review of the activities of the
Issuer during the prior calendar year and of performance under this Indenture
has been made under such Authorized Officer’s supervision; and

 

(ii)           to the best of such Authorized
Officer’s knowledge, based on such review, the Issuer has complied with all
conditions and covenants under this Indenture throughout such year, or, if
there has been a default in the compliance of any such condition or covenant,
specifying each such default known to such Authorized Officer and the nature
and status thereof.

 

Section 3.10.        Issuer May Consolidate, etc. Only on
Certain Terms.

 

(a)           The Issuer shall not
consolidate or merge with or into any other Person, unless:

 

(i)            the Person (if other than the
Issuer) formed by or surviving such consolidation or merger shall be a Person
organized and existing under the laws of the United States or any State and
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Indenture Trustee, in form and substance satisfactory to the
Indenture Trustee, the due and punctual payment of the principal of and
interest on all Notes and the performance or observance of every agreement and
covenant of this Indenture and each other Transaction Document on the part of
the Issuer to be performed or observed, all as provided herein;

 

(ii)           immediately after giving effect to
such transaction, no Default or Event of Default shall have occurred and be
continuing;

 

(iii)          the Rating Agency Condition shall have
been satisfied with respect to such transaction;

 

(iv)          the Issuer shall have received an
Opinion of Counsel which shall be delivered to and shall be satisfactory to the
Indenture Trustee to the effect that such

 

23

 

transaction will not have any material
adverse tax consequence to the Trust, any Noteholder or any Certificateholder;

 

(v)           any action as is necessary to
maintain the lien and security interest created by this Indenture shall have
been taken;

 

(vi)          the Issuer shall have delivered to the
Indenture Trustee an Officer’s Certificate and an Opinion of Counsel (which
shall describe the actions taken as required by clause (v) above or that no
such actions will be taken) each stating that such consolidation or merger and
such supplemental indenture comply with this Article Three and that all
conditions precedent herein provided for relating to such transaction have been
complied with; and

 

(vii)         the Person (if other than the Issuer)
formed by or surviving such consolidation or merger has a net worth,
immediately after such consolidation or merger, that is (A) greater than zero
and (B) not less than the net worth of the Issuer immediately prior to giving
effect to such consolidation or merger.

 

(b)           The Issuer shall not
convey or transfer all or substantially all of its properties or assets,
including those included in the Collateral, to any Person (except as expressly
permitted by the Transaction Documents), unless:

 

(i)            the Person that acquires by
conveyance or transfer the properties and assets of the Issuer shall (A) be a
United States citizen or a Person organized and existing under the laws of the
United States or any State, (B) expressly assume, by an indenture supplemental
hereto, executed and delivered to the Indenture Trustee, in form and substance
satisfactory to the Indenture Trustee, the due and punctual payment of the
principal of and interest on all Notes and the performance or observance of
every agreement and covenant of this Indenture and each other Transaction Document
on the part of the Issuer to be performed or observed, all as provided herein,
(C) expressly agree by means of such supplemental indenture that all right,
title and interest so conveyed or transferred shall be subject and subordinate
to the rights of Holders of the Notes and (D) unless otherwise provided in such
supplemental indenture, expressly agree to indemnify, defend and hold harmless
the Issuer against and from any loss, liability or expense arising under or
related to this Indenture and the Notes.

 

(ii)           immediately after giving effect to
such transaction, no Default or Event of Default shall have occurred and be
continuing;

 

(iii)          the Rating Agency Condition shall have
been satisfied with respect to such transaction;

 

(iv)          the Issuer shall have received an
Opinion of Counsel which shall be delivered to and shall be satisfactory to the
Indenture Trustee to the effect that such transaction will not have any
material adverse tax consequence to the Trust, any Noteholder or any
Certificateholder;

 

24

 

(v)           any action as is necessary to
maintain the lien and security interest created by this Indenture shall have
been taken;

 

(vi)          the Issuer shall have delivered to the
Indenture Trustee an Officer’s Certificate and an Opinion of Counsel (which
shall describe the actions taken as required by clause (v) above or that no
such actions will be taken) each stating that such conveyance or transfer and
such supplemental indenture comply with this Article Three and that all
conditions precedent herein provided for relating to such transaction have been
complied with (including any filings required by Exchange Act); and

 

(vii)        the Issuer has a net worth, immediately after
such conveyance or transfer, that is (A) greater than zero and (B) not less
than the net worth of the Issuer immediately prior to giving effect to such
conveyance or transfer.

 

Section 3.11.        Successor or Transferee.

 

(a)           Upon any
consolidation or merger of the Issuer in accordance with Section 3.10(a), the
Person formed by or surviving such consolidation or merger (if other than the
Issuer) shall succeed to, and be substituted for, and may exercise every right
and power of, the Issuer under this Indenture with same effect as if such
Person has been named as the Issuer herein.

 

(b)           Upon a conveyance or
transfer of all or substantially all the assets or properties of the Issuer
pursuant to Section 3.10(b), the Issuer will be released from every covenant
and agreement of this Indenture to be observed or performed on the part of the
Issuer with respect to the Notes immediately upon the delivery of written
notice to the Indenture Trustee stating that the Issuer is to be so released.

 

Section 3.12.        No Other Business.  The Issuer shall not engage
in any business other than financing, purchasing, owning, selling and managing
the Contracts in the manner contemplated by this Indenture and the other
Transaction Documents and activities incidental thereto.

 

Section 3.13.        No Borrowing.  The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes and (ii) any other Indebtedness permitted
by or arising under the other Transaction Documents.  The proceeds of the Notes shall be used exclusively to fund the
Issuer’s purchase of the Contracts and the other assets specified in the Sale
and Servicing Agreement, to fund the Reserve Fund and to pay the transactional
expenses of the Issuer.

 

Section 3.14.        Servicer’s Obligations.  The Issuer shall cause the
Servicer to comply with Article Five and Article Nine of its obligations under
the Sale and Servicing Agreement.

 

Section 3.15.        Guarantees, Loans Advances and Other
Liabilities.  Except as otherwise contemplated by the
Transaction Documents, the Issuer shall not make any loan or advance or credit
to, or guarantee (directly or indirectly or by an instrument having the effect
of assuming another’s payment or performance on any obligation or capability of
so

 

25

 

doing or otherwise), endorse
or otherwise become contingently liable, directly or indirectly, in connection
with the obligations, stocks or dividends of, or own, purchase, repurchase or
acquire (or agree contingently to do so) any stock, obligations, assets or
securities of, any other interest in, or make any capital contribution to, any
other Person.

 

Section 3.16.        Capital Expenditures.  The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

 

Section 3.17.        Restricted Payments.  Except as permitted by the
Transaction Documents, the Issuer shall not, directly or indirectly, (i) pay
any dividend or make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the Owner
Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer or
to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; provided, however, that
the Issuer may make, or cause to be made, (A) distributions to the Servicer,
the Owner Trustee and the Certificateholder as contemplated by, and to the
extent funds are available for such purpose under, the Sale and Servicing
Agreement or the Trust Agreement and (B) payments to the Indenture Trustee and
the Owner Trustee pursuant to Section 1(a)(ii) of the Administration
Agreement.  The Issuer will not,
directly or indirectly, make payments to or distributions from the Collection
Account except in accordance with this Indenture and the other Transaction Documents.

 

Section 3.18.        Notice of Events of Default.  The Issuer agrees to give the
Indenture Trustee and each Rating Agency prompt written notice of each Event of
Default hereunder and an Event of Termination under the Sale and Servicing
Agreement.

 

Section 3.19.        Further Instruments and Acts.  Upon request of the Indenture
Trustee, the Issuer will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

 

Section 3.20.        Compliance with Laws.  The Issuer shall comply with
the requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability
of the Issuer to perform its obligations under the Notes, this Indenture or any
other Transaction Document.

 

Section 3.21.        Amendments of Sale and Servicing
Agreement and Trust Agreement.  The Issuer shall not agree to
any amendment to Section 11.01 of the Trust Agreement to eliminate the
requirements thereunder that the Indenture Trustee or the Holders of the Notes
consent to amendments thereto as provided therein.

 

Section 3.22.        Removal of Administrator.  So long as any Notes are
issued and outstanding, the Issuer shall not remove the Administrator without
cause unless the Rating Agency Condition shall have been satisfied in
connection with such removal.

 

26

 

ARTICLE FOUR

 

SATISFACTION
AND DISCHARGE

 

Section 4.01.        Satisfaction and Discharge of
Indenture. 
This Indenture shall cease to be of further effect with respect to the
Notes except as to (i) rights of registration of transfer and exchange, (ii)
substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of 
principal thereof and interest thereon, (iv) Sections 3.01, 3.03, 3.04,
3.05, 3.07, 3.08, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations
and immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.07 and the obligations of the Indenture
Trustee under Section 4.02) and (vi) the rights of Noteholders as beneficiaries
hereof with respect to the property so deposited with the Indenture Trustee
payable to all or any of them, and the Indenture Trustee, on demand of and at
the expense of the Issuer, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture with respect to the Notes, when 

 

(A)          either

 

(1)           all
Notes therefore authenticated and delivered (other than (i) Notes that have
been destroyed, lost or stolen and that have been replaced or paid as provided
in Section 2.05 and (ii) Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust, as provided in Section
3.03) have been delivered to the Indenture Trustee for cancellation;

 

(2)           all
Notes not theretofore delivered to the Indenture Trustee for cancellation

 

(i)            have
become due and payable, or

 

(ii)           will
become due and payable at their respective final Distribution Dates within one
year, or

 

(iii)          are
to be called for redemption within one year under arrangements satisfactory to
the Indenture Trustee for the giving of notice of redemption by the Indenture
Trustee in the name, and at the expense, of the Issuer, and the Issuer, in the
case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
irrevocably deposited with the Indenture Trustee cash or direct obligations of
or obligations guaranteed by the United States (which will mature prior to the
date such amounts are payable), in trust in an Eligible Account for such
purpose, in an amount sufficient to pay and discharge the entire indebtedness
on such Note not theretofore delivered to the Indenture Trustee for
cancellation when due to the final scheduled Distribution Date (if Notes shall
have been called for redemption pursuant to Section 10.01(a)), as the case may
be;

 

27

 

(B)           the Issuer has paid or performed or
caused to be paid or performed all amounts and obligations which the Issuer may
owe to or on behalf of the Indenture Trustee for the benefit of the Noteholders
under this Indenture or the Notes; and

 

(C)           the Issuer has delivered to the
Indenture Trustee an Officer’s Certificate and an Opinion of Counsel and (if
required by the TIA or the Indenture Trustee) an Independent Certificate from a
firm of certified public accountants, each meeting the applicable requirements
of Section 11.01(a) and, subject to Section 11.02, stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of
this Indenture have been complied with and the Rating Agency Condition has been
satisfied.

 

Section 4.02.        Application of Trust Money.  All moneys deposited with the
Indenture Trustee pursuant to Section 4.01 shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to
the payment, either directly or through any Paying Agent, as the Indenture
Trustee may determine, to the Holders of the particular Notes for the payment
or redemption of which such moneys have been deposited with the Indenture
Trustee, of all sums due and to become due thereon for principal and interest;
but such moneys need not be segregated from other funds except to the extent
required herein or in the Sale and Servicing Agreement or required by law.

 

Section 4.03.        Repayment of Moneys Held by Paying
Agent.  In
connection with the satisfaction and discharge of this Indenture with respect
to the Notes, all moneys then held by any Paying Agent other than the Indenture
Trustee under the provisions of this Indenture with respect to such Notes
shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held
and applied according to Section 3.03 and thereupon such Paying Agent shall be
released from all further liability with respect to such moneys.

 

Section 4.04.        Release of Collateral.  Subject to Section 11.01 and
the terms of the Transaction Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer’s Certificate and an Opinion of Counsel and
Independent Certificates in accordance with TIA §§314(c) and 314(d)(1) or an
Opinion of Counsel in lieu of such Independent Certificates to the effect that
the TIA does not require any such Independent Certificates.

 

ARTICLE FIVE

 

REMEDIES

 

Section 5.01.        Events of Default.  “Event
of Default,” wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

(i)            default in the payment of any interest on any
Note when the same becomes due and payable, and such default shall continue for
a period of five days;

 

28

 

(ii)           default in the payment of the
principal of or any installment of the principal of any Note when the same
becomes due and payable;

 

(iii)          default in the observance or
performance of any covenant or agreement of the Issuer made in this Indenture
(other than a covenant or agreement, a default in the observance or performance
of which is elsewhere in this Section specifically dealt with) which default
has a material adverse effect on the Noteholders, or any representation or
warranty of the Issuer made in this Indenture or in any certificate or other
writing delivered pursuant hereto or in connection herewith proving to have
been incorrect in any material respect as of the time when the same shall have
been made, and such default shall continue or not be cured, or the circumstance
or condition in respect of which such misrepresentation or warranty was
incorrect shall not have been eliminated or otherwise cured, for a period of 30
days after there shall have been given, by registered or certified mail, to the
Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of
the Class A-1 Notes and the Class A-2 Notes, taken together as a single class,
or, if there are no Class A-1 Notes or Class A-2 Notes Outstanding, by the
Holders of at least 25% of the Outstanding Amount of the Class B Notes a
written notice specifying such default or incorrect representation or warranty
and requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder;

 

(iv)          the filing of a decree or order for
relief by a court having jurisdiction in the premises in respect of the Issuer
or any substantial part of the Collateral in an involuntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official of the Issuer or for any substantial
part of the Collateral, or ordering the winding-up or liquidation of the
Issuer’s affairs, and such decree or order shall remain unstayed and in effect
for a period of 60 consecutive days; or

 

(v)           the commencement by the Issuer of a
voluntary case under any applicable federal or state bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by the Issuer to
the entry of an order for relief in an involuntary case under any such law, or
the consent by the Issuer to the appointment or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Issuer or for any substantial part of the Collateral, or the
making by the Issuer of any general assignment for the benefit of creditors, or
the failure by the Issuer generally to pay its debts as such debts become due,
or the taking of action by the Issuer in furtherance of any of the foregoing.

 

The
Issuer shall deliver to the Indenture Trustee within five days after obtaining
knowledge of the occurrence thereof, written notice in the form of an Officer’s
Certificate of any event which with the giving of notice and the lapse of time
would become an Event of Default under clause (iii) above, its status and what
action the Issuer is taking or proposes to take with respect thereto.

 

Section 5.02.        Rights Upon Event of Default.  If an Event of Default shall have occurred
and be continuing, other than an Event of Default described in Section 5.01(iv)
or (v) above, the Indenture Trustee or the Modified Required Holders may
declare the principal

 

29

 

amount of the Notes
immediately due and payable at par.  At
any time after such declaration of acceleration of maturity has been made and
before a judgment or decree for payment of the money due has been obtained by
the Indenture Trustee as hereinafter in this Article Five, provided, the Required Holders may rescind such
declaration if (i) the Issuer has made all payments of principal of and
interest on all Notes when the same becomes due and payable and (ii) the Issuer
has paid all amounts due and payable to the Indenture Trustee.  If an Event of Default described in Section
5.01(iv) or (v) shall have occurred and be continuing, the principal amount of
the Notes shall become immediately due and payable.

 

Section 5.03.        Collection of Indebtedness and Suits
for Enforcement by Indenture Trustee; Authority of Indenture Trustee.

 

(a)           The Issuer covenants
that if the Notes are accelerated following the occurrence of an Event of
Default, the Issuer will, upon demand of the Indenture Trustee, pay to it, for
the benefit of the Holders of the Notes, the whole amount then due and payable
on such Notes for principal and interest, with interest upon the overdue
principal, and, to the extent payment at such rate of interest shall be legally
enforceable, upon overdue installments of interest, at the applicable Interest
Rate and in addition thereto such further amount as shall be sufficient to
cover costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee and its agents
and counsel.

 

(b)           The Indenture
Trustee following the occurrence of an Event of Default, shall have full right,
power and authority to take, or defer from taking, any and all acts with
respect to the administration, maintenance or disposition of the Collateral.

 

(c)           If an Event of
Default occurs and is continuing, the Indenture Trustee may in its discretion
(except as provided in Section 5.03(d)), proceed to protect and enforce its
rights and the rights of the Noteholders, by such appropriate Proceedings as
the Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

 

(d)           Notwithstanding
anything to the contrary contained in this Indenture, if an Event of Default shall
have occurred and be continuing and if the Issuer fails to perform its
obligations under Section 10.01(b) when and as due, the Indenture Trustee may
in its discretion proceed to protect and enforce its rights and the rights of
the Noteholders by such appropriate Proceedings as the Indenture Trustee shall
deem most effective to protect and enforce any such rights, whether for
specific performance of any covenant or agreement in this Indenture or in aid
of the exercise of any power granted herein, or to enforce any other proper
remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law, provided that the Indenture Trustee shall only be entitled
to take any such actions to the extent such actions (i) are taken only to enforce
the Issuer’s obligations to redeem the principal amount of Notes, and (ii) are
taken only against the Collateral any investments therein and any proceeds
thereof.

 

30

 

(e)           In case there shall
be pending, relative to the Issuer or any other obligor upon the Notes or any
Person having or claiming an ownership interest in the Collateral, Proceedings
under Title 11 of the United States Code or any other applicable federal or
state bankruptcy, insolvency or other similar law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator
or similar official shall have been appointed for or taken possession of the
Issuer or its property or such other obligor or Person, or in case of any other
comparable judicial Proceedings relative to the Issuer or other obligor upon
the Notes, or to the creditors or property of the Issuer or such other obligor,
the Indenture Trustee, irrespective of whether the principal of any Notes shall
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Indenture Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such Proceedings or otherwise:

 

(i)            to
file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Notes and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee (including any claim for reasonable compensation to the
Indenture Trustee and each predecessor Indenture Trustee, and their respective
agents, attorneys and counsel, and for reimbursement of all expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee, except as a result of negligence or bad faith)
and of the Noteholders allowed in such Proceedings;

 

(ii)  unless
prohibited by applicable law and regulations, to vote on behalf of the Holders
of Notes in any election of a trustee, a standby trustee or Person performing
similar functions in any such Proceedings;

 

(iii)  to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute all amounts received with respect to the claims
of the Noteholders and of the Indenture Trustee on their behalf; and

 

(iv)  to file
such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the Holders
of Notes allowed in any judicial proceedings relative to the Issuer, its
creditors and its property;

 

and
any trustee, receiver, liquidator, custodian or other similar official in any
such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor
Indenture Trustee except as a result of negligence or bad faith.

 

31

 

(f)            Nothing herein
contained shall be deemed to authorize the Indenture Trustee to authorize or
consent to or vote for or accept or adopt on behalf of any Noteholder any plan
of reorganization, arrangement, adjustment or composition affecting the Notes
or the rights of any Holder thereof or to authorize the Indenture Trustee to
vote in respect of the claim of any Noteholder in any such proceeding except,
as aforesaid, to vote for the election of a trustee in bankruptcy or similar
Person.

 

(g)           All rights of action
and of asserting claims under this Indenture or under any of the Notes, may be
enforced by the Indenture Trustee without the possession of any of the Notes or
the production thereof in any trial or other Proceedings relative thereto, and
any such action or Proceedings instituted by the Indenture Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment, subject to the payment of the expenses, disbursements and
compensation of the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents and attorneys, shall be for the ratable benefit of the
Holders of the Notes.

 

(h)           In any Proceedings
brought by the Indenture Trustee (including any Proceedings involving the
interpretation of any provision of this Indenture), the Indenture Trustee shall
be held to represent all of the Holders of the Notes, and it shall not be
necessary to make any Noteholder a party to any such proceedings.

 

Section 5.04.        Remedies.  If
an Event of Default shall have occurred and be continuing, the Indenture
Trustee (subject to Section 5.05) may, and shall if so directed by the Required
Holders in writing:

 

(i)               institute Proceedings in its own
name and as or on behalf of a trustee of an express trust for the collection of
all amounts then payable on the Notes or under this Indenture with respect
thereto, whether by declaration or otherwise, enforce any judgment obtained,
and collect from the Issuer and any other obligor upon such Notes moneys
adjudged due;

 

(ii)              institute Proceedings from time to
time for the complete or partial foreclosure of this Indenture with respect to
the Collateral;

 

(iii)             exercise any remedies of a secured
party under the UCC and any other remedy available to the Indenture Trustee and
take any other appropriate action to protect and enforce the rights and
remedies of the Indenture Trustee on behalf of the Noteholders under this
Indenture or the Notes; and

 

(iv)             sell
the Collateral or any portion thereof or rights or interest therein, at one or
more public or private sales called and conducted in any manner permitted by
law; provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Collateral following an Event of Default, unless (A) the Holders
of 100% of the Outstanding Amount of the Notes, consent thereto, (B) the
proceeds of such sale or liquidation distributable to the Noteholders are
sufficient to discharge in full all amounts then due and unpaid upon such Notes
for principal and interest, (C) there has been an Event of Default described in
Section 5.01(i) or (ii) and (D) the Indenture Trustee determines that the

 

32

 

Collateral will not continue to provide
sufficient funds for the payment of principal of and interest on the Notes as
they would have become due if the Notes had not been declared due and payable,
and the Indenture Trustee provides prior written notice to each Rating Agency
and obtains the consent of the Required Holders.  In determining such sufficiency or insufficiency with respect to
clauses (B) and (C), the Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such purpose; provided, however, upon the
occurrence of an Event of Default described in Section 5.01(iv) or (v), caused
solely from an event described in such subparagraphs occurring with respect to
the Trust Depositor, the Collateral will be liquidated by the Indenture Trustee
and the Trust will be terminated 90 days after the date of such Insolvency
Event, unless, before the end of such 90-day period, the related Trustee shall
have received written instructions from the Required Holders, to the effect
that such Required Holders disapprove of the liquidation of such Collateral and
termination of such Trust.

 

Section 5.05.        Optional Preservation of the
Contracts. 
Following an Event of Default and if such Event of Default has not been
rescinded and annulled, the Indenture Trustee may, but need not, elect to
maintain possession of the Collateral. 
It is the desire of the parties hereto and the Noteholders that there be
at all times sufficient funds for the payment of principal and interest on the
Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Collateral.  In determining whether to maintain
possession of the Collateral, the Indenture Trustee may, but need not, obtain
and rely upon an opinion of an Independent investment banking or accounting
firm of national reputation as to the feasibility of such proposed action and
as to the sufficiency of the Collateral for such purpose.

 

Section 5.06.        Priorities.

 

(a)           If the Indenture
Trustee collects any money or property pursuant to this Article Five, it shall
pay out the money or property in the order and priority set forth in Section
7.05(b) or (c) of the Sale and Servicing Agreement.

 

(b)           The Indenture
Trustee may fix a record date and payment date for any payment to Noteholders
pursuant to this Section.  At least 15
days before such record date, the Issuer shall mail to each Noteholder and the
Indenture Trustee a notice that states the record date, the payment date and
the amount to be paid.

 

Section 5.07.        Limitation of Suits.  No Holder of any Note shall
have any right to institute any Proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless (and in all events subject to Section 11.16
hereof):

 

(i)            such Holder has previously given
written notice to the Indenture Trustee of a continuing Event of Default;

 

33

 

(ii)           the Holders of not less than 25% of
the Outstanding Amount of the Class A-1 Notes and the Class A-2 Notes, or, if
there are no Class A-1 Notes or Class A-2 Notes Outstanding, Holders of not
less than 25% of the Outstanding Amount of the Class B Notes have made written
request to the Indenture Trustee to institute such Proceeding in respect of
such Event of Default in its own name as Indenture Trustee hereunder;

 

(iii)          such Holder or Holders have offered to
the Indenture Trustee reasonable indemnity against the costs, expenses and
liabilities to be incurred in complying with such request;

 

(iv)          the Indenture Trustee for 60 days
after its receipt of such notice, request and offer of indemnity has failed to
institute such Proceedings; and

 

(v)           no direction inconsistent with such
written request has been given to the Indenture Trustee during such 60-day
period by the Required Holders.

 

It
is understood and intended that no one or more Holders of Notes shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holders
of Notes or to obtain or to seek to obtain priority or preference over any
other Holders or to enforce any right under this Indenture, except in the
manner herein provided.

 

In
the event the Indenture Trustee shall receive conflicting or inconsistent
requests and indemnity from two or more groups of Holders of Notes, each
representing less than a majority of the Outstanding Amount of the Class A-1
Notes and the Class A-2 Notes or the Class B Notes, as the case may be, the
Indenture Trustee shall act at the direction of the group of Holders of Notes
with the greater Outstanding Amount of Class A-1 Notes, Class A-2 Notes, or
Class B Notes, as the case may be; provided, however, if the Indenture Trustee
receives conflicting or inconsistent requests and indemnity from two or more
groups of Holders of Notes representing an equal Outstanding Amount of the
Class A-1 Notes, Class A-2 Notes or Class B Notes, the Indenture Trustee in its
sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

 

Section 5.08.        Unconditional Rights of Noteholders
to Receive Principal and Interest.  Notwithstanding any other
provisions in the Indenture, the Holder of any Note shall have the right, which
is absolute and unconditional, to receive payment of the principal of and
interest on such Note on or after the respective due dates thereof expressed in
such Note or in this Indenture (or, in the case of redemption, on or after the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder.

 

Section 5.09.        Restoration of Rights and Remedies.  If
the Indenture Trustee or any Noteholder has instituted any Proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason or has been determined adversely to
the Indenture Trustee or to such Noteholder, then and in every such case the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder,

 

34

 

and thereafter all rights
and remedies of the Indenture Trustee and the Noteholders shall continue as
though no such Proceeding had been instituted.

 

Section 5.10.        Rights and Remedies Cumulative.  No
right or remedy herein conferred upon or reserved to the Indenture Trustee or
to the Noteholders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

Section 5.11.        Delay or Omission Not a Waiver.  No delay or omission of the
Indenture Trustee or any Holder of any Note to exercise any right or remedy
accruing upon any Default of Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein.  Every right and
remedy given by this Article Five or by law to the Indenture Trustee or to the
Noteholders may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

 

Section 5.12.        Control by Noteholders.  The Required Holders shall
have the right to direct the time, method and place of conducting any
Proceeding for any remedy available to the Indenture Trustee with respect to
the Notes or exercising any trust or power conferred on the Indenture Trustee;
provided that:

 

(i)            such direction shall not be in
conflict with any rule of law or with this Indenture;

 

(ii)           subject to the terms of Section 5.04,
any direction to the Indenture Trustee to sell or liquidate the Collateral
shall be by the Holders of Notes representing not less than 100% of the
Outstanding Amount of the Notes;

 

(iii)          if the conditions set forth in Section
5.05 have been satisfied and the Indenture Trustee elects to retain the
Collateral pursuant to such Section, then any direction to the Indenture
Trustee by Holders of Notes representing less than 100% of the Outstanding
Amount of the Notes to sell or liquidate the Collateral shall be of no force
and effect; and

 

(iv)          the Indenture Trustee may take any
other action deemed proper by the Indenture Trustee that is not inconsistent
with such direction.

 

Notwithstanding
the rights of Noteholders set forth in this Section, subject to Section 6.01,
the Indenture Trustee need not take any action that it determines might involve
it in liability or might materially and adversely affect the rights of any
Noteholders not consenting to such action.

 

Section 5.13.        Waiver of Past Defaults.  In the case of any waiver of
an Event of Default, the Issuer, the Indenture Trustee and the Holders of the
Notes shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other Event
of Default or impair any right consequent thereto.  Upon any

 

35

 

such waiver, such Event of
Default shall cease to exist and be deemed to have been cured and not to have
occurred, for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or Event of Default or impair any right consequent
thereto.

 

Section 5.14.        Undertaking for Costs.  All parties to this Indenture
agree, and each Holder of any Note by such Holder’s acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in any
suit against the Indenture Trustee for any action taken, suffered or omitted by
it as Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (i) any suit instituted by the
Indenture Trustee, (ii) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Class A-1 Notes and the Class A-2 Notes, or, if there
are no Class A-1 Notes, Class A-2 Notes Outstanding, any Noteholder or group of
Noteholders holding in the aggregate 10% of the Outstanding Amount of the Class
B Notes or (iii) any suit instituted by any Noteholder for the enforcement of
the payment of principal of or interest on any Note on or after the respective
due dates expressed in such Note and in this Indenture (or, in the case of
redemption, on or after the Redemption Date).

 

Section 5.15.        Waiver of Stay or Extension Laws.  The
Issuer covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, or plead or in any manner whatsoever, claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance
of this Indenture; and the Issuer (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantages of any such law, and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

Section 5.16.        Action on Notes.  The Indenture Trustee’s right
to seek and recover judgment on the Notes or under this Indenture shall not be
affected by the seeking, obtaining or application of any other relief under or
with respect to this Indenture.  Neither
the lien of this Indenture nor any rights or remedies of the Indenture Trustee
or the Noteholders shall be impaired by the recovery of any judgment by the
Indenture Trustee against the Issuer or by the levy of any execution under such
judgment upon any portion of the Collateral or upon any of the assets of the
Issuer.  Any money or property collected
by the Indenture Trustee shall be applied in accordance with Section 5.06.

 

Section 5.17.        Performance and Enforcement of
Certain Obligations.

 

(a)        Promptly
following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer shall take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and
observance by the Trust Depositor and

 

36

 

the Servicer, as applicable,
of each of their obligations to the Issuer under or in connection with the Sale
and Servicing Agreement in accordance with the terms thereof, and to exercise
any and all rights, remedies, powers and privileges lawfully available to the
Issuer under or in connection with the Sale and Servicing Agreement to the
extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Trust Depositor or the
Servicer thereunder and the institution of legal of administrative actions or
proceedings to compel or secure performance by the Trust Depositor or the
Servicer of each of their obligations under the Sale and Servicing Agreement.

 

(b)           If an Event of
Default has occurred and is continuing, the Indenture Trustee may, and at the
direction (which direction shall be in writing, including facsimile) of the
Modified Required Holders shall exercise all rights, remedies, powers,
privileges and claims of the Issuer against the Trust Depositor or the Servicer
under or in connection with the Sale and Servicing Agreement, including the
right or power to take any action to compel or secure performance or observance
by the Trust Depositor or the Servicer of each of their obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Sale and Servicing Agreement, and any right of
the Issuer to take such action shall be suspended.

 

ARTICLE SIX

 

THE
INDENTURE TRUSTEE

 

Section 6.01.        Duties of Indenture Trustee.

 

(a)        If
an Event of Default has occurred and is continuing, the Indenture Trustee shall
exercise the rights and powers vested in it by this Indenture and in the same
degree of care and skill in their exercise as a prudent person would exercise
or use under the circumstances in the conduct of such person’s own affairs.

 

(b)        Except
during the continuance of an Event of Default:

 

(i)            the
Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Indenture Trustee;
and

 

(ii)           in
the absence of bad faith on its part, the Indenture Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Indenture
Trustee and conforming to the requirements of this Indenture; however, the
Indenture Trustee shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture and the other
Transaction Documents to which the Indenture Trustee is a party.

 

37

 

(c)           The Indenture
Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

 

(i)            this
paragraph does not limit the effect of Section 6.01(b);

 

(ii)           the
Indenture Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer unless it is proved that the Indenture Trustee
was negligent in ascertaining the pertinent facts; and

 

(iii)          the
Indenture Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it
pursuant to Section 5.12.

 

(d)           Every provision of
this Indenture that in any way relates to the Indenture Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

 

(e)           The Indenture Trustee
shall not be liable for interest on any money received by it except as the
Indenture Trustee may agree in writing with the Issuer.

 

(f)            Money held in trust
by the Indenture Trustee need not be segregated from other funds except to the
extent required by law or the terms of this Indenture or the Sale and Servicing
Agreement.

 

(g)           No provision of this
Indenture shall require the Indenture Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties
hereunder or in the exercise of any of its rights or powers, if it shall have
reasonable grounds to believe that repayments of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(h)           The Indenture
Trustee shall have no discretionary duties other than performing those
ministerial acts set forth above necessary to accomplish the purpose of this
Trust as set forth in this Indenture.

 

(i)            Every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Indenture Trustee shall be subject to the
provisions of this section and to the provisions of the TIA.

 

Section 6.02.        Rights of Indenture Trustee.

 

(a)           The Indenture
Trustee may rely on any document believed by it to be genuine and to have been
signed or presented by the proper person. The Indenture Trustee need not
investigate any fact or matter stated in the document.

 

(b)           Before the Indenture
Trustee acts or refrains from acting, it may require an Officer’s Certificate
(with respect to factual matters) or an Opinion of Counsel, as applicable.  The Indenture Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on the
Officer’s Certificate or Opinion of Counsel.

 

38

 

(c)           The Indenture
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through Affiliates, agents or attorneys or a
custodian or nominee, and the Indenture Trustee shall not be responsible for
any misconduct or negligence on the part of, or for the supervision of, any
such agent, attorney, custodian or nominee appointed with due care by it
hereunder.

 

(d)           The Indenture
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers;
provided, however, that the Indenture Trustee’s conduct does not constitute
willful misconduct, negligence or bad faith.

 

(e)           The Indenture Trustee
may consult with counsel, and the advice of such counsel or any Opinion of
Counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with such advice or Opinion of Counsel.

 

(f)            The Indenture
Trustee shall be under no obligation to institute, conduct or defend any
litigation under this Indenture or in relation to this Indenture, at the
request, order or direction of any of the Holders of Notes, pursuant to the
provisions of this Indenture, unless such Holders of Notes shall have offered
to the Indenture Trustee reasonable security or indemnity against the costs,
expenses and liabilities that may be incurred therein or thereby; provided,
however, that the Indenture Trustee shall, upon the occurrence of an Event of
Default (that has not been cured), exercise the rights and powers vested in it
by this Indenture in a manner consistent with Section 6.01.

 

(g)           The Indenture
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond or other paper or document,
unless so requested by the Holders of Notes evidencing not less than 25% of the
Outstanding Amount of the Notes; provided, however, that if the payment within
a reasonable time to the Indenture Trustee of the costs, expenses  or liabilities likely to be incurred by it
in the making of such investigation is, in the opinion of the Indenture
Trustee, not reasonably assured to the Indenture Trustee by the security
afforded to it by the terms of this Indenture or the Sale and Servicing
Agreement, the Indenture Trustee may require reasonable indemnity against such
cost, expense or liability as a condition to so proceeding; the reasonable
expense of every such examination shall be paid by the Person making such
request, or, if paid by the Indenture Trustee, shall be reimbursed by the
Person making such request upon demand.

 

Section 6.03.        Individual Rights of Indenture
Trustee.  The
Indenture Trustee in its individual or any other capacity may become the owner
or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates
with the same rights it would have if it were not Indenture Trustee.  Any Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights.  However, the Indenture Trustee is required
to comply with Section 6.11.

 

39

 

Section 6.04.        Indenture Trustee’s Disclaimer.  The
Indenture Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture, the Collateral or the Notes, it
shall not be accountable for the Issuer’s use of the proceeds from the Notes,
and it shall not be responsible for any statement of the Issuer in this
Indenture or in any document issued in connection with the sale of the Notes or
in the Notes other than the Indenture Trustee’s certificate of authentication.

 

Section 6.05.        Notice of Defaults.  If a Default occurs and is
continuing and if it is known to a Responsible Officer of the Indenture
Trustee, the Indenture Trustee shall mail to each Noteholder notice of the
Default within 90 days after it occurs. 
Except in the case of a Default in payment of principal of or interest
on any Note (including payments pursuant to the redemption of such Notes), the
Indenture Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders.

 

Section 6.06.        Reports by Indenture Trustee to
Holders. 
Within the prescribed period of time for tax reporting purposes after
the end of each calendar year during the term of this Indenture, the Indenture
Trustee shall deliver to each Noteholder such information, including without
limitation, IRS Form 1099, as may be required by applicable law to enable such
holder to prepare its federal and state income tax returns.

 

Section 6.07.        Compensation and Indemnity.  The Issuer shall pay or shall
cause the Administrator to pay to the Indenture Trustee from time to time
reasonable compensation for its services. 
The Indenture Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Issuer shall or shall cause the Administrator to reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services.  Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee’s agents, counsel, accountants and experts.  The Issuer shall indemnify or shall cause
the Administrator to indemnify the Indenture Trustee against any and all loss,
liability or expense (including attorneys’ fees) incurred by it in connection
with the administration of this trust and the performance of its duties
hereunder.  The Indenture Trustee shall
notify the Issuer and the Administrator promptly of any claim for which it may
seek indemnity.  Failure by the
Indenture Trustee to so notify the Issuer and the Administrator shall not
relieve the Issuer or the Administrator of its obligations hereunder.  The Issuer shall defend or shall cause the
Administrator to defend any such claim, and the Indenture Trustee may have
separate counsel and the Issuer shall pay or shall cause the Administrator to
pay the fees and expenses of such counsel. 
Neither the Issuer nor the Administrator need reimburse any expense or
indemnify against any loss, liability or expense incurred by the Indenture
Trustee through the Indenture Trustee’s own willful misconduct, negligence or
bad faith.

 

The
Issuer’s payment obligations and indemnification to the Indenture Trustee
pursuant to this Section shall survive the resignation or removal of the
Indenture Trustee and the termination and discharge of this Indenture; provided
that the Indenture Trustee shall be entitled only to compensation for its
services for the period prior to the date of such resignation or removal of the
Indenture Trustee.  When the Indenture
Trustee incurs

 

40

 

expenses after the occurrence of an Event of
Default specified in Section 5.01(iv) or (v) with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11
of the United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.

 

Section 6.08.        Replacement
of Indenture Trustee.  The
Indenture Trustee may resign at any time by so notifying the Issuer and the
Servicer.  The Issuer shall remove the
Indenture Trustee if:

 

(i)            the Indenture Trustee fails to
comply with Section 6.11;

 

(ii)           a court having jurisdiction in the
premises in respect of the Indenture Trustee in an involuntary case or
proceeding under federal or state banking or bankruptcy laws, as now or
hereafter constituted, or any other applicable federal or state bankruptcy,
insolvency or other similar law, shall have entered a decree or order granting
relief or appointing a receiver, liquidator, assignee, custodian, trustee,
conservator, sequestrator (or similar official) for the Indenture Trustee or
for any substantial part of the Indenture Trustee’s property, or ordering the
winding-up or liquidation of the Indenture Trustee’s affairs, provided any such
decree or order shall have continued unstayed and in effect for a period of 30
consecutive days;

 

(iii)          the Indenture Trustee commences a
voluntary case under any federal or state banking or bankruptcy laws, as now or
hereafter constituted, or any other applicable federal or state bankruptcy, insolvency
or other similar law, or consents to the appointment of or taking possession by
a receiver, liquidator, assignee, custodian, trustee, conservator, sequestrator
or other similar official for the Indenture Trustee or for any substantial part
of the Indenture Trustee’s property, or makes any assignment for the benefit of
creditors or fails generally to pay its debts as such debts become due or takes
any corporate action in furtherance of any of the foregoing; or

 

(iv)          the Indenture Trustee otherwise becomes
incapable of acting.

 

If
the Indenture Trustee resigns or is removed, the Issuer shall promptly appoint
a successor Indenture Trustee.  A
successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer.  Thereupon the resignation or removal of the
retiring Indenture Trustee shall become effective, and the successor Indenture
Trustee shall have all the rights, powers and duties of the Indenture Trustee
under this Indenture.  The Issuer or the
successor Indenture Trustee shall mail a notice of its succession to
Noteholders.  The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

 

If
a successor Indenture Trustee does not take office within 60 days after the
retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Holders of a majority in Outstanding Amount of the
Notes may appoint or petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

 

41

 

If
the Indenture Trustee fails to comply with Section 6.11, any Noteholder may
petition any court of competent jurisdiction for the removal of the Indenture
Trustee and the appointment of a successor Indenture Trustee.

 

Any
resignation or removal of the Indenture Trustee and appointment of a successor
Indenture Trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor Indenture
Trustee pursuant to this Section and payment of all fees and expenses owed to
the outgoing Indenture Trustee. 
Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the retiring Indenture Trustee shall be entitled to payment or
reimbursement of such amounts as such Person is entitled pursuant to Section
6.07.

 

Section 6.09.        Successor Indenture Trustee by Merger.  If
the Indenture Trustee consolidates with, merges or converts into, or transfers
all or substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
corporation without any further act shall be the successor Indenture Trustee;
provided, that such corporation or banking association shall be otherwise
qualified and eligible under Section 6.11. 
The Indenture Trustee shall provide each Rating Agency prompt notice of
any such transaction.

 

In
case at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture, any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor Indenture Trustee, and deliver such Notes
so authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this
Indenture provided that the certificate of the Indenture Trustee shall have.

 

Section 6.10.        Appointment of Co-Indenture Trustee
or Separate Indenture Trustee.

 

(a)           Notwithstanding any
other provision of this Indenture, at any time, for the purpose of meeting any
legal requirement of any jurisdiction in which any part of the Collateral may
at the time be located, the Indenture Trustee and the Administrator acting
jointly shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-Indenture Trustee or co-Indenture
Trustees, jointly with the Indenture Trustee, or separate Indenture Trustee or
separate Indenture Trustees, of all or any part of the Trust, and to vest in
such Person or Persons, in such capacity and for the benefit of the
Noteholders, such title to the Collateral, or any part hereof, and, subject to
the other provisions of this Section, such powers, duties, obligations, rights
and trusts as the Indenture Trustee and the Administrator may consider
necessary or desirable.  If the
Administrator shall not have joined in such appointment within 15 days after
the receipt by it of a request so to do, the Indenture Trustee alone shall have
the power to make such appointment.  No
co-Indenture Trustee or separate Indenture Trustee hereunder shall be required
to meet the terms of eligibility of a successor Indenture Trustee under Section
6.11 and no notice to

 

42

 

Noteholders of the
appointment of any co-Indenture Trustee or separate Indenture Trustee shall be
required under Section 6.08.

 

(b)           Every separate
Indenture Trustee and co-Indenture Trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

 

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

 

(ii)           no
Indenture Trustee hereunder shall be personally liable by reason of any act or
omission of any other Indenture Trustee hereunder; and

 

(iii)          the
Indenture Trustee and the Administrator may at any time accept the resignation
of or remove any separate Indenture Trustee or co-Indenture Trustee.

 

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

 

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

 

43

 

appointment of any separate
Indenture Trustee or co-Indenture Trustee shall not relieve the Indenture
Trustee of its obligations and duties under this Indenture.

 

Section 6.11.        Eligibility.  

 

(a)           The Indenture
Trustee shall at all times satisfy the requirements of TIA §310(a).  The Indenture Trustee hereunder shall at all
times be a financial institution organized and doing business under the laws of
the United States of America or any state, authorized under such laws to
exercise corporate trust powers, whose long term unsecured debt is rated at
least Baa3 by Moody’s and shall have a combined capital and surplus of at least
$50,000,000 or shall be a member of a bank holding system the aggregate
combined capital and surplus of which is $50,000,000 and subject to supervision
or examination by federal or state authority, provided that the Indenture
Trustee’s separate capital and surplus shall at all times be at least the
amount required by Section 310(a)(2) of the TIA.  If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of a supervising or examining authority,
then for the purposes of this Section 6.ll, the combined capital and surplus of
such Person shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

 

(b)           If a Default occurs
and is continuing and the Indenture Trustee is deemed to have a “conflicting
interest” (as defined in the TIA) as a result of acting as trustee for both the
Class A-1 Notes and the Class A-2 Notes and the Class B Notes, the Issuer shall
appoint a successor Indenture Trustee for the Class A-1 Notes and the Class A-2
Notes and a successor Indenture Trustee for the Class B Notes so that there
will be separate Indenture Trustees for the Class A-1 Notes and the Class A-2
Notes on the one hand, and for the Class B Notes on the other hand.  No such event shall alter the voting rights
of the Noteholders under this Indenture or under any of the other Transaction
Documents.

 

(c)           In the case of an
appointment hereunder of a successor Indenture Trustee with respect to any
Class of Notes, the Issuer, the retiring Indenture Trustee and the successor
Indenture Trustee with respect to such Class of Notes shall execute and deliver
an indenture supplement hereto wherein the successor Indenture Trustee shall
accept such appointment and which (i) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, the
successor Indenture Trustee all rights, powers, trusts and duties of the
retiring Indenture Trustee with respect to the Notes of such Class as to which
the appointment of such Indenture Trustee relates, (ii) if the retiring
Indenture Trustee is not retiring with respect to all Classes of Notes, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Indenture
Trustee with respect to the Notes of each Class as to which the retiring
Indenture Trustee is not retiring shall continue to be vested in the retiring
Indenture Trustee and (iii) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Indenture Trustee, it
being understood that nothing herein or in such supplemental indenture shall
constitute such Indenture Trustees co-trustees of the same trust and that each
such Indenture Trustee; and upon execution and delivery of such supplemental
indenture the resignation or removal of the retiring Indenture Trustee shall
become effective to the extent provided therein.

 

44

 

(d)           In case at any time
the Indenture Trustee shall cease to be eligible in accordance with the
provisions of this Section 6.11, the Indenture Trustee shall resign immediately
in the manner and with the effect specified in Section 6.08.  The Indenture Trustee shall comply with TIA
§310(b); provided, however, that there shall be excluded from the operation of
TIA §310(b)(1) any indenture or indentures under which other securities of the
Issuer are outstanding if the requirements for such exclusion set forth in TIA
§310(b)(1) are met.

 

Section 6.12.        Pennsylvania Motor Vehicle Sales
Finance Act Licenses.  The Indenture Trustee shall use its best
efforts to maintain the effectiveness of all licenses required under the
Pennsylvania Motor Vehicle Sales Finance Act in connection with this Indenture
and the transactions contemplated hereby until the lien and security interest
of this Indenture shall no longer be in effect in accordance with the terms
hereof.

 

Section 6.13.        Preferential Collection of Claims
Against Issuer.  The Indenture Trustee shall comply with TIA
§311(a), excluding any creditor relationship listed in TIA §311(b).  An Indenture Trustee who has resigned or
been removed shall be subject to TIA §311(a) to the extent indicated.

 

ARTICLE SEVEN

 

NOTEHOLDERS’
LISTS AND REPORTS

 

Section 7.01.        Issuer to Furnish Indenture Trustee
Names and Addresses of Noteholders.  The Issuer will furnish or
cause to be furnished to the Indenture Trustee (i) not more than five days
after the earlier of (a) each Record Date and (b) three months after the last
Record Date, a list, in such form as the Indenture Trustee may reasonably
require, of the names and addresses of the Noteholders as of such Record Date
and (ii) at such other times as the Indenture Trustee may request in writing,
within 30 days after receipt by the Issuer of any such request, a list of
similar form and content as of a date not more than ten days prior to the time
such list is furnished; provided, however, that so long as the Indenture
Trustee is the Note Registrar, no such list shall be required to be furnished.

 

Section 7.02.        Preservation of Information:
Communication to Noteholders.

 

(a)           The Indenture
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of the Noteholders contained in the most recent list
furnished to the Indenture Trustee as provided in Section 7.01 and the names
and addresses of Noteholders received by the Indenture Trustee in its capacity
as Note Registrar and shall otherwise comply with TIA §312(a).  The Indenture Trustee may destroy any list
furnished to it as provided in such Section 7.01 upon receipt of a new
list so furnished.

 

(b)           Noteholders may
communicate pursuant to TIA § 312(b) with other Noteholders with respect to
their rights under this Indenture or under the Notes.

 

(c)           The Issuer, the
Indenture Trustee and the Note Registrar shall have the protection of TIA §
312(c).

 

45

 

Section 7.03.        Reports by Issuer.

 

(a)           The Issuer shall:

 

(i)            file
with the Indenture Trustee, within 15 days after the Issuer is required (if at
all) to file the same with the Commission, copies of the annual reports and of
the information, documents and other reports (or copies of such portions of any
of the foregoing as the Commission may from time to time by rules and
regulations prescribe) that the Issuer may be required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act;

 

(ii)           file
with the Indenture Trustee and the Commission in accordance with rules and
regulations prescribed from time to time by the Commission such additional
information, documents and reports with respect to compliance by the Issuer
with the conditions and covenants of this Indenture as may be required from
time to time by such rules and regulations;

 

(iii)          supply
to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to
all Noteholders described in TIA §313(c)) such summaries of any information,
documents and reports required to be filed by the Issuer pursuant to clauses
(i) and (ii) of this Section 7.03(a) and by rules and regulations prescribed
from time to time by the Commission.

 

(b)           Unless the Issuer
otherwise determines, the fiscal year of the Issuer shall end on December 31 of
each year.

 

Section 7.04.        Reports by Indenture Trustee.  If required by TIA §313(a),
within 60 days after each January 31st beginning with January 31,
2004, the Indenture Trustee shall mail to each Noteholder as required by TIA
§313(c) a brief report dated as of such date that complies with TIA
§313(a).  The Indenture Trustee also
shall comply with TIA §313(b).

 

A
copy of each report at the time of its mailing to Noteholders shall be filed by
the Indenture Trustee with the Commission and each stock exchange, if any, on
which the Notes are listed.  The Issuer
shall notify the Indenture Trustee if and when the Notes are listed on any
stock exchange.

 

ARTICLE EIGHT

 

ACCOUNTS,
DISBURSEMENTS AND RELEASES

 

Section 8.01.        Collection of Money.  Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture and the Sale
and Servicing Agreement.  The Indenture
Trustee shall apply all such money received by it as provided in this Indenture
and the Sale and Servicing Agreement. 
Except as otherwise expressly provided in this Indenture, if any default
occurs in the making

 

46

 

of any payment or
performance under any agreement or instrument that is part of the Collateral,
the Indenture Trustee may take such action as may be appropriate to enforce
such payment or performance, including the institution and prosecution of
appropriate Proceedings.  Any such
action shall be without prejudice to any right to claim a Default or Event of
Default under this Indenture and any right to proceed thereafter as provided in
Article Five.

 

Section 8.02.        Trust Accounts.

 

(a)           On or prior to the
Closing Date, the Issuer shall cause the Servicer to establish and maintain, in
the name of the Indenture Trustee, for the benefit of the Noteholders and the
Certificateholders, the Trust Accounts as provided in Section 5.05 of the Sale
and Servicing Agreement.

 

(b)           All Available Monies
with respect to each Due Period will be deposited in the Collection Account as
provided in Section 5.05 of the Sale and Servicing Agreement.  On or before each Distribution Date, all
amounts required to be deposited in the Note Distribution Account with respect
to the preceding Due Period pursuant to Section 7.05 of the Sale and Servicing
Agreement will be transferred from the Collection Account and/or the Reserve
Account to the Note Distribution Account.

 

(c)           On each Distribution
Date, the Indenture Trustee shall distribute all amounts on deposit in the Note
Distribution Account to Noteholders in respect of the Notes to the extent of
amounts due and unpaid on the Notes for principal and interest in the order and
priority set forth in Section 7.05 of the Sale and Servicing Agreement.

 

Section 8.03.        General Provisions Regarding
Accounts.

 

(a)           So long as no
Default or Event of Default shall have occurred and be continuing, all or a
portion of the funds in the Trust Accounts shall be invested in accordance with
the provisions of Section 5.05 of the Sale and Servicing Agreement.  Except as otherwise provided in Section 5.05
of the Sale and Servicing Agreement, all income or other gain from investments
of moneys deposited in such Trust Accounts (other than the Reserve Fund) shall
be deposited by the Indenture Trustee in the Collection Account, and any loss
resulting from such investments shall be charged to the related Trust
Account.  The Issuer will not direct the
Indenture Trustee to make any investment of any funds or to sell any investment
held in any of the Trust Accounts unless the security interest granted and
perfected in such account will continue to be perfected in such investment or
the proceeds of such sale, in either case without any further action by any
Person, and, in connection with any direction to the Indenture Trustee to make
any such investment or sale, if requested by the Indenture Trustee, the Issuer
shall deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

 

(b)           Subject to Section
6.01(c), the Indenture Trustee shall not in any way be held liable by reason of
any insufficiency in any of the  Trust
Accounts resulting from any loss on any Eligible Investment included therein
except for losses attributable to the Indenture Trustee’s failure to make
payments on such Eligible Investments issued by the Indenture

 

47

 

Trustee, in its commercial
capacity as principal obligor and not as Indenture Trustee, in accordance with
their terms.

 

(c)           If (i) the Issuer
shall have failed to give investment directions for any funds on deposit in the
Trust Accounts to the Indenture Trustee by 11:00 a.m., New York City time (or
such other time as may be agreed by the Issuer and Indenture Trustee), on any
Business Day or (ii) a Default or Event of Default shall have occurred and be
continuing with respect to the Notes but the Notes shall not have been declared
due and payable pursuant to Section 5.02 or (iii) if such Notes shall have been
declared due and payable following an Event of Default, but amounts collected
or receivable from the Collateral are being applied in accordance with Section
5.05 as if there had not been such a declaration, then the Indenture Trustee
shall, to the fullest extent practicable, invest and reinvest funds in the
Trust Accounts in one or more Eligible Investments satisfying the requirements
of clause (d) of the definition thereof.

 

Section 8.04.        Release of Collateral.

 

(a)           Subject to the
payment of its fees and expenses pursuant to Section 6.07, the Indenture
Trustee may, and when required by the provisions of this Indenture or the Sale
and Servicing Agreement shall, execute instruments to release property from the
lien of this Indenture, or convey the Indenture Trustee’s interest in the same,
in a manner and under circumstances that are not inconsistent with the
provisions of this Indenture.  No party
relying upon an instrument executed by the Indenture Trustee as provided in
this Article shall be bound to ascertain the Indenture Trustee’s authority,
inquire into the satisfaction of any conditions precedent or see to the
application of any moneys.

 

(b)           The Indenture
Trustee shall, at such time as there are no Notes Outstanding and all sums due
the Indenture Trustee pursuant to Section 6.07 have been paid, release any
remaining portion of the Collateral that secured the Notes from the lien of
this Indenture and release to the Issuer or any other Person entitled thereto
any funds then on deposit in the Trust Accounts.  The Indenture Trustee shall release property from the lien of
this Indenture pursuant to this Section 8.04(b) only upon receipt of an Issuer
Request accompanied by an Officer’s Certificate, an Opinion of Counsel and (if
required by the TIA as so stated in the Opinion of Counsel) Independent
Certificates in accordance with TIA §§314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01.

 

Section 8.05.        Opinion
of Counsel.  The Indenture Trustee shall receive at least
seven days notice when requested by the Issuer to take any action pursuant to
Section 8.04(a), accompanied by copies of any instruments involved, and the
Indenture Trustee shall also require, as a condition to such action, an Opinion
of Counsel, in form and substance satisfactory to the Indenture Trustee,
stating the legal effect of any such action, outlining the steps required to
complete the same, and concluding that all conditions precedent to the taking
of such action have been complied with and such action will not materially and
adversely impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions for this Indenture; provided, however, that
such Opinion of Counsel shall not be required to express an opinion as to the
fair value of the Collateral.  Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy

 

48

 

and validity of any
certificate or other instrument delivered to the Indenture Trustee in
connection with any such action.

 

ARTICLE NINE

 

SUPPLEMENTAL
INDENTURES

 

Section 9.01.        Supplemental Indentures Without
Consent of Noteholders.

 

(a)           Without the consent
of the Holders of any Notes and with prior notice to each Rating Agency, the
Issuer and the Indenture Trustee, when authorized by an Issuer Order, and the
other parties hereto at any time from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the
TIA as in force at the date of the execution thereof), in form satisfactory to
the Indenture Trustee, for any of the following purposes:

 

(i)            to
correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the
Indenture Trustee any property subject or required to be subjected to the lien
created by this Indenture, or to subject additional property to the lien
created by this Indenture;

 

(ii)           to
evidence the succession, in compliance with the applicable provisions hereof,
of another Person to the Issuer, and the assumption by any such successor of
the covenants of the Issuer herein and in the Notes contained;

 

(iii)          to
add to the covenants of the Issuer, for the benefit of the Holders of the
Notes, or to surrender any right or power herein conferred upon the Issuer;

 

(iv)          to
convey, transfer, assign, mortgage or pledge any property to or with the
Indenture Trustee;

 

(v)           to
cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision
herein, in any supplemental indenture, in the Transaction Documents or in the
Prospectus or to add any other provisions with respect to matters or questions
arising under this Indenture, in any supplemental indenture, in the Transaction
Documents or in the Prospectus; provided that such action shall not adversely
affect the interests of the Holders of the Notes;

 

(vi)          to
evidence and provide for the acceptance of the appointment hereunder by a
successor Indenture Trustee with respect to the Notes and to add to or change
any of the provisions of this Indenture as shall be necessary to facilitate the
administration of the trusts hereunder by more than one Indenture Trustee,
pursuant to the requirements of Article Six;

 

49

 

(vii)         to
modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the TIA
or under any similar federal statute hereafter enacted and to add to this
Indenture such other provisions as may be expressly required by the TIA; and

 

(viii)        to
elect into the FASIT provisions of the Code, provided an Opinion of Counsel to
the effect that such election will not adversely affect the Noteholders, is
delivered to the Issuer and Indenture Trustee.

 

The
Indenture Trustee is hereby authorized to join in the execution of any such
supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

 

(b)           The Issuer and the
Indenture Trustee, when authorized by an Issuer Order, may, also without the
consent of any of the Holders of the Notes and with prior notice to each Rating
Agency, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel, adversely
affect in any material respect the interests of any Noteholder.

 

Section 9.02.        Supplemental Indentures With Consent
of Noteholders.  The Issuer and the Indenture Trustee, when
authorized by an Issuer Order, may, with the consent of the Required Holders,
by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

 

(i)            change the date of payment of any installment
of principal of or interest on any Note, or reduce the principal amount
thereof, the interest rate thereon or the Redemption Date Amount with respect
thereto, change the provisions of this Indenture relating to the application of
collections on, or the proceeds of the sale of, the Collateral to payment of
principal of or interest on the Notes, or change any place of payment where, or
the coin or currency in which, any Note or the interest thereon is payable, or
impair the right to institute suit for the enforcement of the provisions of
this Indenture requiring the application of funds available therefor, as
provided in Article Five, to the payment of any such amount due on the Notes on
or after the respective due dates thereof (or, in the case of redemption, on or
after the  Redemption Date);

 

(ii)           reduce the percentage of the Outstanding Amount of the Notes, the
consent of the Holders of which is required for any such supplemental
indenture, or the consent of the Holders of which is required for any waiver of
compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences provided for in this Indenture;

 

50

 

(iii)          modify or alter the provisions of the
second proviso to the definition of the term “Outstanding”;

 

(iv)          reduce the percentage of the
Outstanding Amount of the Notes required to direct the Indenture Trustee to
sell or liquidate the Collateral pursuant to Section 5.04 or amend the
provisions of this Article which specify the percentage of the Outstanding
Amount of the Notes required to amend this Indenture or the other Transaction
Documents;

 

(v)           modify any provision of this Section
except to increase any percentage specified herein or to provide that certain
additional provisions of this Indenture or the other Transaction Documents
cannot be modified or waived without the consent of the Holder of each
Outstanding Note affected thereby; or

 

(vi)          permit the creation of any lien
ranking prior to or on a parity with the lien created by this Indenture with
respect to any part of the Collateral or, except as otherwise permitted or
contemplated herein, terminate the lien created by this Indenture on any
property at any time subject hereto or deprive the Holder of any Note of the
security provided by the lien created by this Indenture.

 

The
Indenture Trustee may in its discretion determine whether or not any Notes
would be affected by any supplemental indenture and any such determination
shall be conclusive upon the Holders of the Notes, whether theretofore or
thereafter authenticated and delivered hereunder.  The Indenture Trustee shall not be liable for any such
determination made in good faith.

 

It
shall not be necessary for any Act of Noteholders under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

 

Promptly
after the execution by the parties hereto of any supplemental indenture
pursuant to this Section, the Indenture Trustee shall mail to the Holders of
the Notes to which such amendment or supplemental indenture relates a notice
setting forth in general terms the substance of such supplemental indenture.  Any failure of the Indenture Trustee to mail
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture.

 

Section 9.03.        Execution of Supplemental Indentures.  In
executing, or permitting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Indenture Trustee shall be entitled to receive,
and subject to Sections 6.01 and 6.02 shall be fully protected in relying upon,
an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture. 
The Indenture Trustee may, but shall not be obligated to, enter into any
such supplemental indenture that affects the Indenture Trustee’s own rights,
duties, liabilities or immunities under this Indenture or otherwise.

 

Section 9.04.        Effect of Supplemental Indenture. 
Upon the execution of any supplemental indenture pursuant to the
provisions hereof, this Indenture shall be and be deemed to be modified and
amended in accordance therewith with respect to the Notes

 

51

 

affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the parties hereto and the Holders of the
Notes shall thereafter be determined, exercised and enforced hereunder subject
in all respects to such modifications and amendments, and all the terms and
conditions of any such supplemental indenture shall be and be deemed to be part
of the terms and conditions of this Indenture for any and all purposes.

 

Section 9.05.        Conformity With Trust Indenture Act. 
Every amendment of this Indenture and every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust
Indenture Act as then in effect so long as this Indenture shall then be
qualified under the Trust Indenture Act.

 

Section 9.06.        Reference in Notes to Supplemental
Indentures.  Notes authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and if
required by the Indenture Trustee shall, bear a notation in form approved by
the Indenture Trustee as to any matter provided for in such supplemental
indenture.  If the Issuer or the
Indenture Trustee shall so determine, new notes so modified as to conform, in
the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

 

ARTICLE TEN

 

REDEMPTION
OF NOTES

 

Section 10.01.      Redemption.

 

(a)           In the event that
the Seller pursuant to Section 7.10 of the Sale and Servicing Agreement purchases
the corpus of the Trust, the Notes are subject to redemption in whole, but not
in part, on the Distribution Date on which such repurchase occurs, for a
purchase price equal to the outstanding principal, and accrued interest on the
Notes; provided, however, that the Issuer has available funds sufficient to pay
such amounts.  Seller, the Servicer or
the Issuer shall furnish each Rating Agency notice of such redemption.  If the Notes are to be redeemed pursuant to
this Section 10.01(a), the Servicer or the Issuer shall furnish notice of such
election to the Indenture Trustee not later than 20 days prior to the
Redemption Date and the Issuer shall deposit with the Indenture Trustee in the
Note Distribution Account the Redemption Price of the Notes to be redeemed
whereupon all such Notes shall be due and payable on the Redemption Date upon
the furnishing of a notice complying with Section 10.02 to each Holder of the
Notes.

 

(b)           In the event that
the assets of the Trust are sold pursuant to Section 5.03(b) of this Indenture,
the proceeds of such sale shall be distributed as provided in Section
5.06.  If amounts are to be paid to
Noteholders pursuant to this Section 10.01(b), the Servicer or the Issuer
shall, to the extent practicable, furnish notice of such event to the Indenture
Trustee not later than 20 days prior to the Redemption Date whereupon all such
amounts shall be payable on the Redemption Date.

 

52

 

Section 10.02.      Form of Redemption Notice.

 

(a)           Notice of redemption under Section 10.01(a) shall be given by the
Indenture Trustee by first-class mail, postage prepaid, mailed not less than
five days prior to the applicable Redemption Date to each Holder of Notes, as
of the close of business on the Record Date preceding the applicable Redemption
Date, at such Holder’s address appearing in the Note Register.

 

All
notices of redemption shall state:

 

(i)            the Redemption Date;

 

(ii)           the Redemption Date Amount; and

 

(iii)          the place where such Notes are to be
surrendered for payment of the Redemption Date Amount (which shall be the
office or agency of the Issuer to be maintained as provided in Section 3.02).

 

Notice
of redemption of the Notes shall be given by the Indenture Trustee in the name
and at the expense of the Issuer. 
Failure to give notice of redemption, or any defect therein, to any
Holder of any Note shall not impair or affect the validity of the redemption of
any other Note.

 

(b)           Prior notice of redemption under Section 10.01(b) is not required to be
given to Noteholders.

 

Section 10.03.      Notes Payable on Redemption Date.  The
Notes or portions thereof to be redeemed shall, following notice of redemption
(if any) as required by Section 10.02, on the Redemption Date become due and
payable at the Redemption Date Amount and (unless the Issuer shall default in
the payment of the Redemption Date Amount) no interest shall accrue on the
Redemption Date Amount for any period after the date to which accrued interest
is calculated for purposes of calculating the Redemption Date Amount.

 

ARTICLE ELEVEN

 

MISCELLANEOUS

 

Section 11.01.      Compliance Certificates and
Opinions, etc.

 

(a)           Upon any application or request by the Issuer to the Indenture Trustee
to take any action under any provision of this Indenture, the Issuer shall
furnish to the Indenture Trustee (i) an Officer’s Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any, have
been complied with, and (iii) (if required by the TIA as so stated in the
Opinion of

 

53

 

Counsel) an Independent
Certificate from a firm of certified public accountants meeting the applicable
requirements of this Section and TIA §314(c), except that, in the case of any
such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished. 
No additional certificate or opinion need be furnished.

 

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

 

(i)            a
statement that each signatory of such certificate or opinion has read or has
caused to be read such covenant or condition and the definitions herein
relating thereto;

 

(ii)           a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based;

 

(iii)          a
statement that, in the opinion of each such signatory, such signatory has made
such examination or investigation as is necessary to enable such signatory to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 

(iv)          a
statement as to whether, in the opinion of each such signatory, such condition
or covenant has been complied with.

 

(b)           (i)            Prior to the deposit of any
Collateral or other property or securities with the Indenture Trustee that is
to be made the basis for authentication and delivery of the Notes or the
release of any property subject to the lien created by this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.01(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of the signer thereof such
certificate as to the fair value (within 90 days of such deposit) to the Issuer
of the Collateral or other property or securities to be so deposited.

 

(ii)           Whenever the Issuer is required to
furnish to the Indenture Trustee an Officer’s Certificate certifying or stating
the opinion of any signer thereof as to 
the matters described in clause (i) above, the Issuer shall also deliver
to the Indenture Trustee an Independent Certificate as to the named matters, if
the fair value to the Issuer of the property to be so deposited and of all
other such property made the basis of any such withdrawal or release since the
commencement of the then-current fiscal year of the Issuer, as set forth in the
certificates delivered pursuant to clause (i) above and this clause (ii), is
10% or more of the Outstanding Amount of the Notes, but such a certificate need
not be furnished with respect to any property so deposited, if the fair value
thereof to the Issuer as set forth in the related Officer’s Certificate is less
than $25,000 or less than one percent of the Outstanding Amount of the Notes.

 

(iii)          Other than with respect to any release
described in clause (A) or (B) of Section 11.01(b)(v), whenever any property or
securities are to be released from the lien created by this Indenture, the
Issuer shall also furnish to the Indenture Trustee an Officer’s

 

54

 

Certificate certifying or stating the opinion
of each person signing such certificate as to the fair value (within 90 days of
such release) of the property or securities proposed to be released and stating
that in the opinion of such person the proposed release will not impair the
security created by this Indenture in contravention of the provisions hereof.

 

(iv)          Whenever the Issuer is required to
furnish to the Indenture Trustee an Officer’s Certificate certifying or stating
the opinion of any signer thereof as to the matters described in clause (iii)
above, the Issuer shall also furnish to the Indenture Trustee an Independent
Certificate as to the same matters if the fair value of the property or
securities and of all other property or securities (other than property
described in clauses (A) or (B) of Section 11.01(b)(v)) released from the lien
created by this Indenture since the commencement of the then current fiscal
year, as set forth in the certificates required by clause (iii) above and this
clause (iv), equals 10% or more of the Outstanding Amount of the Notes, but
such certificate need not be furnished in the case of any release of property
or securities if the fair value thereof as set forth in the related Officer’s
Certificate is less than $25,000 or less than one percent of the then
Outstanding Amount of the Notes.

 

(v)           Notwithstanding any other provision
of this Section, the Issuer may, without compliance with the other provisions
of this Section, (A) collect, liquidate, sell or otherwise dispose of the
Contracts as and to the extent permitted or required by the Transaction
Documents, and (B) make cash payments out of the Trust Accounts as and to the
extent permitted or required by the Transaction Documents, so long as the
Issuer shall deliver to the Indenture Trustee every six months, commencing
April 1, 2004, an Officer’s Certificate stating that all the dispositions of
Collateral described in clauses (A) or (B) that occurred during the preceding
six calendar months were in the ordinary course of the Issuer’s business and
that the proceeds thereof were applied in accordance with the Transaction
Documents.

 

Section 11.02.      Form of Documents Delivered to
Indenture Trustee.  In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the
opinion of, only one such Person, or that they be so certified or covered by
only one document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Person as to other matters,
and any such Person may certify or given an opinion as to such matters in one
or several documents.

 

Any
certificate or opinion of an Authorized Officer of the Issuer may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous.  Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer, the Seller or the Issuer, stating that the
information with respect to such factual matters is in the possession of the
Servicer, the Seller or the Issuer, unless such counsel knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

 

55

 

Where
any Person is required to make, give or execute two or more applications,
requests, consents, certificates, opinions or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument.

 

Whenever
in this Indenture, in connection with any application or certificate or report
to the Indenture Trustee, it is provided that the Issuer shall deliver any
document as a condition of the granting of such application, or as evidence of
the Issuer’s compliance with any term hereof, it is intended that the truth and
accuracy, at the time of the granting of such application or at the effective
date of such certificate or report (as the case may be), of the facts and
opinions stated in such document shall in such case be conditions precedent to
the right of the Issuer to have such application granted or to the sufficiency
of such certificate or report.  The
foregoing shall not, however, be construed to affect the Indenture Trustee’s
right to rely upon the truth and accuracy of any statement or opinion contained
in any such document as provided in Article Six.

 

Section 11.03.      Acts of Noteholders.

 

(a)           Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except
as herein otherwise expressly provided such action shall become effective when
such instrument or instruments are delivered to the Indenture Trustee, and,
where it is hereby expressly required, to the Issuer.  Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the “Act” of the
Noteholders signing such instrument or instruments.  Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.01) conclusive in favor of the Indenture Trustee and
the Issuer, if made in the manner provided in this Section.

 

(b)           The fact and date of
the execution by any person of any such instrument or writing may be proved in
any manner that the Indenture Trustee deems sufficient.

 

(c)           The ownership of
Notes shall be proved by the Note Register.

 

(d)           Any request, demand,
authorization, direction, notice, consent, waiver or other action by the Holder
of any Notes shall bind the Holder of every Note issued upon the registration thereof
or in exchange therefor or in lieu thereof, in respect of anything done,
omitted or suffered to be done by the Indenture Trustee or the Issuer in
reliance thereon, whether or not notation of such action is made upon such
Note.

 

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

 

56

 

the date transmitted by
legible telecopier transmission with a confirmation of receipt, in all cases
addressed to the recipient at the address specified in the Sale and Servicing
Agreement for such recipient.  Each
party hereto may, by notice given in accordance herewith to each of the other
parties hereto, designate any further or different address to which subsequent
notices shall be sent.

 

Section 11.05.      Notices to Noteholders; Waiver. 
Where this Indenture provides for notice to Noteholders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at his address as it appears on the Note
Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice.  In any case where notice to Noteholders is given by mail, neither
the failure to mail such notice nor any defect in any notice so mailed to any
particular Noteholder shall affect the sufficiency of such notice with respect
to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

 

Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by any Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Noteholders shall be
filed with the Indenture Trustee but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such a waiver.

 

In
case, by reason of the suspension of regular mail service as a result of a
strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event of Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be
a sufficient giving of such notice.

 

Where
this Indenture provides for notice to the Rating Agencies, failure to give such
notice shall not affect any other rights or obligations created hereunder, and
shall not under any circumstance constitute a Default or Event of Default.

 

Section 11.06.      Alternate Payment and Notice
Provisions. 
Notwithstanding any provisions of this Indenture or any of the Notes to
the contrary, the Issuer may enter into any agreement with any Holder of a Note
providing for a method of payment, or notice by the Indenture Trustee or any
Paying Agent to such Holder, that is different from the methods provided for in
this Indenture for such payments or notices. 
The Issuer will furnish to the Indenture Trustee a copy of each such
agreement and the Indenture Trustee will cause payments to be made and notices
to be given in accordance with such agreements.

 

Section 11.07.      Effect of Headings and Table of
Contents.  The
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

 

Section 11.08.      Successors
and Assigns.  All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns, whether
so

 

57

 

expressed or not.  All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-Indenture Trustees and agents.

 

Section 11.09.      Separability.  In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 11.10.      Benefits of Indenture.  Nothing in this Indenture or
in the Notes, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, and the Noteholders, and any
other party secured hereunder, and any other Person with an ownership interest
in any part of the Collateral, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

 

Section 11.11.      Legal Holidays.  In any case where the date on
which any payment is due shall not be a Business Day, then (notwithstanding any
other provision of the Notes or this Indenture) payment need not be made on
such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on the date on which nominally due, and no interest
shall accrue for the period from and after any such nominal date.

 

Section 11.12.      Governing Law.  THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS AND THE OBLIGATIONS, RIGHTS,
AND REMEDIES OF THE PARTIES UNDER THE AGREEMENT SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

 

Section 11.13.      Counterparts.  This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

 

Section 11.14.      Recording of Indenture.  If this Indenture is subject
to recording in any appropriate public recording offices, such recording is to
be effected by the Issuer and at its expense accompanied by an Opinion of
Counsel (which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

 

Section 11.15.      Trust Obligation.  No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the
Owner Trustee or the Indenture Trustee on the Notes or under Indenture or any
certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficiary interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Indenture Trustee or the Owner Trustee in its individual capacity, any holder
of a beneficial interest in the Issuer, the Owner Trustee or the Indenture
Trustee or of any successor or assign of the Indenture Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee have

 

58

 

no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. 
For all purposes of this Indenture, in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Article Six, Seven and
Eight of the Trust Agreement.

 

Section 11.16.      No Petition.  The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note or a beneficial interest in
a Note, hereby covenant and agree that they will not at any time institute
against the Trust Depositor or the Issuer, or join in any institution against
the Trust Depositor or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Notes, this Indenture or any of the other
Transaction Documents.

 

Section 11.17.      Inspection.  The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer’s normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by independent certified public accountants,
and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s
officers, employees and independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested, the Indenture
Trustee shall and shall cause its representatives to hold in confidence all
such information except to the extent disclosure may be required by law (and
all reasonable applications for confidential treatment are unavailing) and
except to the extent that the Indenture Trustee may reasonably determine that
such disclosure is consistent with its obligations hereunder.

 

Section 11.18.      Conflict with Trust Indenture Act.  If
any provision hereof limits, qualifies or conflicts with another provision
hereof that is required to be included in this Indenture by any of the
provisions of the Trust Indenture Act, such required provision shall control.

 

The
provisions of TIA §§310 through 317 that impose duties on any person (including
the provisions automatically deemed included herein unless expressly excluded
by this Indenture) are a part of and govern this Indenture, whether or not
physically contained herein.

 

Section 11.19.      Disclaimer and Subordination. 
Each Noteholder by accepting a Note acknowledges and agrees that such
Note represents a debt obligation of the Trust Depositor only and does not
represent an interest in any assets (other than the Trust Assets) of the Trust
Depositor (including by virtue of any deficiency claim in respect of
obligations not paid or otherwise satisfied from the Trust Assets and proceeds
thereof).  In furtherance of and not in
derogation of the foregoing, each Noteholder by accepting a Note acknowledges
and agrees that it shall have no right, title or interest in or to any assets
(or interests therein) (other than Trust Assets) conveyed or purported to be
conveyed by the Trust Depositor to another securitization trust (i.e., other
than the Issuer) or other Person or Persons in connection therewith (whether by
way of a sale, capital contribution or by virtue of the

 

59

 

granting of a Lien) (“Other
Assets”).  To the extent that,
notwithstanding the agreements and provisions contained in the preceding
sentences of this Section 11.19, any Noteholder either (i) asserts an interest
in or claim to, or benefit from, Other Assets, whether asserted against or
through the Trust Depositor or any other Person owned by the Trust Depositor,
or (ii) is deemed to have any such interest, claim or benefit in or from Other
Assets, whether by operation of law, legal process, pursuant to applicable
provisions of any applicable insolvency laws or otherwise (including without
limitation by virtue of Section 1111(b) of the federal Bankruptcy Code or any
successor provision having similar effect under the Bankruptcy Code or any
successor provision having similar effect under the Bankruptcy Code), and
whether deemed asserted against or through the Trust Depositor or any other
Person owned by the Trust Depositor, then each Noteholder by accepting a Note
further acknowledges and agrees that any such interest, claim or benefit in or
from Other Assets is and shall be expressly subordinated to the indefeasible
payment in full of all obligations and liabilities of the Trust Depositor which,
under the terms of the relevant documents relating to the securitization of
such Other Assets, are entitled to be paid from, entitled to the benefits of,
or otherwise secured by such Other Assets (whether or not any such entitlement
or security interest is legally perfected or otherwise entitled to a priority
of distribution or application under applicable law, including any applicable
insolvency laws, and whether asserted against the Trust Depositor or any other
Person owned by the Depositor), including, without limitation, the payment of
post-petition interest on such other obligations and liabilities.  This subordination agreement shall be deemed
a subordination agreement within the meaning of Section 510(a) of the
Bankruptcy Code.  Each Noteholder further
acknowledges and agrees that no adequate remedy at law exists for a breach of
this Section 11.19 and that the terms and provisions of this Section 11.19 may
be enforced by an action for specific performance.

 

[signature page follows]

 

60

 

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

 

	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  TRUST 2003-4

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in

  its individual capacity but solely on behalf of

  the Issuer as Owner Trustee under the Trust

  Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anita E. Dallago

  
	
   

  	
  Printed
  Name: Anita E. Dallago

  
	
   

  	
  Title:
  Senior Financial Services Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNY
  MIDWEST TRUST COMPANY, not in its

  individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Cynthia Davis

  
	
   

  	
  Printed
  Name: Cynthia Davis

  
	
   

  	
  Title:  Assistant Vice President

  
				

 

 

	
  STATE
  OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS

  
	
  COUNTY
  OF COOK

  	
  )

  	
   

  

 

	
  On

  
	
  [insert date]

  
	
   

  
	
  before
  me,

  
	
  [Insert name and title of notary]

  
	
   

  
	
  personally
  appeared                                                             ,

  

 

o            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 such person(s)
acted, executed the instrument.

 

WITNESS
my hand and official seal.

 

 

	
  Signature

  	
   

  	
  [Seal]

  

 

 

	
  STATE
  OF DELAWARE

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS

  
	
  COUNTY
  OF NEW CASTLE

  	
  )

  	
   

  

 

	
  On

  
	
  [insert date]

  
	
   

  
	
  before
  me,

  
	
  [Insert name and title of notary]

  
	
   

  
	
  personally
  appeared                                                             ,

  

 

o            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 such person(s)
acted, executed the instrument.

 

WITNESS
my hand and official seal.

 

 

	
  Signature
  

  	
   

  	
  [Seal]

  

 

 

EXHIBIT A

 

[RESERVED]

 

A-1

 

EXHIBIT B

 

FORM OF CLASS A-1 NOTE

 

UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE  ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

 

THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL
AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2003-4

 

      % HARLEY-DAVIDSON MOTORCYCLE
CONTRACT BACKED NOTES, CLASS A-1

 

	
  REGISTERED

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No.
  R-

  	
   

  	
   

  	
   

  	
  CUSIP
  No. 

  

 

Harley-Davidson
Motorcycle Trust 2003-4, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to
[            ], or
registered assigns, the principal sum of 
                    
($          ) payable on the
earlier of the Distribution Date occurring in April 2008 (the “Class A-1 Final
Distribution Date”) and the Redemption Date, if any, pursuant to Section 10.01
of the Indenture referred to on the reverse hereof.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in
Section 3.01 of the Indenture.  Interest
on this Note will accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution  Date or, if no interest
has yet been paid, from the Closing Date. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

 

B-1

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts. 
All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

Reference
is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this
Note.

 

Unless
the certificate of authentication hereon has been executed by the Indenture
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

 

B-2

 

IN
WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
or in facsimile, by an Authorized Officer, as of the date set forth below.

 

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
   

  	
  TRUST
  2003-4

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its
 individual capacity but solely on
  behalf of the
 Issuer as Owner Trustee, under the
  Trust
 Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
											

 

B-3

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This
is one of the Notes designated above and referred to in the within-mentioned
Indenture.

 

	
   

  	
  BNY
  MIDWEST TRUST COMPANY,

  
	
   

  	
  not
  in its individual capacity but solely as Indenture

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

B-4

 

[REVERSE OF CLASS A-1 NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its       % Harley-Davidson Motorcycle Contract
Backed Notes, Class A-1 (the “Class A-1 Notes”), all issued under an Indenture,
dated as of October 1, 2003 (the “Indenture”), between the Issuer and BNY
Midwest Trust Company, as Indenture Trustee (the “Indenture Trustee”), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Notes.  The Class A-1 Notes are subject to all terms of the
Indenture.  All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented
or amended.

 

The
Class A-1 Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture subject to
the priorities of allocations as to interest and principal payments as
described in the Sale and Servicing Agreement.

 

Principal
of the Class A-1 Notes will be payable on the earlier of the Class A-1 Final
Distribution Date and the Redemption Date, if any, selected pursuant to the
Indenture.  Notwithstanding the
foregoing, the entire unpaid principal amount of the Class A-1 Notes shall be
due and payable on the date following the occurrence of an Event of Default on
which the maturity of the Notes shall have been accelerated in the manner
provided in the Indenture.  All
principal payments on the Class A-1 Notes shall be made pro rata to the Class
A-1 Noteholders entitled thereto.

 

Payments
of interest on this Note due and payable on each Distribution Date shall be
made by wire transfer to the account of the Person whose name appears as the
Registered Holder of this Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date except that with
respect to Notes registered on the Record Date in the name of the nominee of
the Clearing Agency (initially, such nominee to be Cede & Co.), payments
will be made by wire transfer in immediately available funds to the account
designated by such nominee.  Such checks
shall be mailed to the Person entitled thereto at the address of such Person as
it appears on the Note Register as of the applicable Record Date without
requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) affected by any payments made
on any Distribution Date shall be binding upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon.  If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Distribution Date, then the Indenture
Trustee, in the name of and on behalf of the Issuer, will notify the Person who
was the Registered Holder hereof as of the Record Date preceding such
Distribution Date by notice mailed within five days of such Distribution Date
and the amount then due and payable shall be payable only upon presentation and
surrender of this Note at the Corporate Trust Office of the Indenture Trustee
or at the office of the Indenture Trustee’s agent appointed for such purposes
located in the City of Chicago, Illinois.

 

The
Issuer shall pay interest on overdue installments of interest at the Class A-1
Rate to the extent lawful.

 

B-5

 

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Seller, on any Distribution Date on or after the date on which the Pool Balance
is less than 10% of the Aggregate Principal Balance as of the Cutoff Date.

 

As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new program, and such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

 

Each
Noteholder by acceptance of a Note or a beneficial interest in a Note covenants
and agrees that no recourse may be taken, directly or indirectly, with respect
to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner Trustee
in its individual capacity, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in its individual
capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Indenture Trustee
or the Owner Trustee in its individual capacity, except as any such Person may
have expressly agreed and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

 

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against the Trust
Depositor or the Issuer, or join in any institution against the Trust Depositor
or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Transaction Documents.

 

The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness secured by the
Collateral and that the Issuer will be disregarded as a separate entity for
federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3(b)(1)(ii).  Each Noteholder,
by acceptance of a Note or a beneficial interest in a Note, agrees to treat the
Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

 

B-6

 

Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer and the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Noteholders under the Indenture at any time by the Issuer and
the Modified Required Holders.  The
Indenture also contains provisions permitting the Noteholders representing
specified percentages of the Outstanding Amount of the Notes, on behalf of the Noteholders,
to waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Noteholder  (or any one of more Predecessor Notes) shall
be conclusive and binding upon such Holders and upon all future
Noteholders  and of any Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the
Indenture without the consent of Noteholders issued thereunder.

 

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note is deemed
to represent that (i) it is not, and is not acquiring a Note or a beneficial
interest in a Note on behalf of or with “plan assets” (as determined under
Department of Labor Regulation Section 2510.3-101 or otherwise) of a Plan, or
any employee benefit plan subject to Similar Law, or (ii) its acquisition and
holding of a Note or a beneficial interest in a Note do not give rise to a
nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of
the Code, or any Similar Law.  Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note is
deemed to make one of the foregoing representations.

 

The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

 

This
Note and the Indenture shall be construed in accordance with the laws of the
State of Illinois, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed.

 

B-7

 

EXHIBIT C

 

FORM OF CLASS A-2 NOTE

 

UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE  ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

 

THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL
AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2003-4

 

     % HARLEY-DAVIDSON MOTORCYCLE CONTRACT
BACKED NOTES,

CLASS A-2

 

	
  REGISTERED

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No.
  R-

  	
   

  	
   

  	
   

  	
  CUSIP
  No. 

  

 

Harley-Davidson
Motorcycle Trust 2003-4, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to
[                     ],
or registered assigns, the principal sum of
                        
($                )
payable on the earlier of the Distribution Date occurring in April 2011 (the
“Class A-2 Final Distribution Date”) and the Redemption Date, if any, pursuant
to Section 10.01 of the Indenture referred to on the reverse hereof.  No payments of principal of the Class A-2
Notes shall be made until the principal on the Class A-1 Notes have been paid
in full.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in
Section 3.01 of the Indenture.  Interest
on this Note will accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, if no interest has yet been paid, from the Closing
Date.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

 

C-1

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts. 
All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

Reference
is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this
Note.

 

Unless
the certificate of authentication hereon has been executed by the Indenture
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

 

C-2

 

IN
WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
or in facsimile, by an Authorized Officer, as of the date set forth below.

 

	
  Date:
  

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
  TRUST
  2003-4

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its individual capacity but solely on behalf of the
  Issuer as Owner Trustee, under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
												

 

C-3

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This
is one of the Notes designated above and referred to in the within-mentioned
Indenture.

 

	
   

  	
  BNY
  MIDWEST TRUST COMPANY,

  
	
   

  	
  not
  in its individual capacity but solely as Indenture

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

C-4

 

[REVERSE OF CLASS A-2 NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its      % Harley-Davidson Motorcycle Contract Backed
Notes, Class A-2 (the “Class A-2 Notes”), all issued under an Indenture, dated
as of October 1, 2003 (the “Indenture”), between the Issuer and BNY Midwest
Trust Company, as Indenture Trustee (the “Indenture Trustee”), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Notes.  The Notes are subject to all terms of the Indenture.  All terms used in this Note that are defined
in the Indenture, as supplemented or amended, shall have the meanings assigned
to them in or pursuant to the Indenture, as so supplemented or amended.

 

The
Class A-2 Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture subject to
the priorities of allocations as to interest and principal payments as
described in the Sale and Servicing Agreement.

 

Principal
of the Class A-2 Notes will be payable on the earlier of the Class A-2 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.01(a)
or 10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A-2 Notes shall be due and payable on the date on which following the
occurrence of an Event of Default on which the maturity of the Notes shall have
been accelerated in the manner provided in the Indenture.  All principal payments on the Class A-2
Notes shall be made pro rata to the Class A-2 Noteholders entitled thereto.

 

Payments
of interest on this Note due and payable on each Distribution Date shall be
made by wire transfer to the account of the Person whose name appears as the
Registered Holder of this Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Notes registered on the Record Date in the name of nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee.  Such checks
shall be mailed to the Person entitled thereto at the address of such Person as
it appears on the Note Register as of the applicable Record Date without
requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) affected by any payments made
on any Distribution Date shall be binding upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon.  If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Distribution Date, then the Indenture
Trustee, in the name of and on behalf of the Issuer, will notify the Person who
was the Registered Holder hereof as of the Record Date preceding such
Distribution Date by notice mailed within five days of such Distribution Date
and the amount then due and payable shall be payable only upon presentation and
surrender of this Note at the Indenture Trustee’s principal Corporate Trust
Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located in the City of Chicago, Illinois.

 

The
Issuer shall pay interest on overdue installments of interest at the Class A-2
Rate to the extent lawful.

 

C-5

 

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Seller, on any Distribution Date on or after the date on which the Pool Balance
is less than 10% of the Aggregate Principal Balance as of the Cutoff Date.

 

As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new program, and such other
documents as the Indenture Trustee may require, and thereupon one or more new
Class A-2 Notes of authorized denomination and in the same aggregate principal
amount will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

 

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the
Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Indenture
Trustee or the Owner Trustee in their individual capacities, (ii) any owner of
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Indenture Trustee or the Owner
Trustee in their individual capacities, any holder of a beneficial interest in
the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or
assign of the Indenture Trustee or the Owner Trustee in their individual
capacities, except as any such Person may have expressly agreed and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

 

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against the Trust
Depositor or the Issuer, or join in any institution against the Trust Depositor
or the Issuer of any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Transaction Documents.

 

The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness secured by the
Collateral and that the Issuer will be disregarded as a separate entity for
federal income tax purposes pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii).  Each Noteholder, by acceptance of a Note or
a beneficial interest in a Note, agrees to treat the Notes for

 

C-6

 

federal, state and local income, single
business and franchise tax purposes as indebtedness of the Issuer.

 

Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer, the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Holders of the Notes under the Indenture at any time by the Issuer
and the consent of the Modified Required Holders.  The Indenture also contains provisions permitting the Holders of
Notes representing specified percentages of the Outstanding Amount of the
Notes, on behalf of the Holders of all the Notes, to waive compliance by the
Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. 
Any such consent or waiver by the Holder of this Note (or any one of
more Predecessor Notes) shall be conclusive and binding upon such Holders and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the
Indenture without the consent of Holders of the Notes issued thereunder.

 

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note is deemed
to represent that (i) it is not, and is not acquiring a Note or a beneficial
interest in a Note on behalf of or with “plan assets” (as determined under
Department of Labor Regulation Section 2510.3-101 or otherwise) of a Plan, or
any employee benefit plan subject to Similar Law, or (ii) its acquisition and
holding of a Note or a beneficial interest in a Note do not give rise to a
nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of
the Code, or any Similar Law.  Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note is
deemed to make one of the foregoing representations.

 

The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

 

This
Note and the Indenture shall be construed in accordance with the laws of the
State of Illinois, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed.

 

C-7

 

EXHIBIT D

 

FORM OF CLASS B NOTE

 

UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE  ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS
SECURITY IS NOT A SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE
UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES.

 

THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL
AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2003-4

 

      % HARLEY-DAVIDSON MOTORCYCLE
CONTRACT BACKED NOTES,

CLASS B

 

	
  REGISTERED

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No.
  R-

  	
   

  	
   

  	
   

  	
  CUSIP
  No. 

  

 

Harley-Davidson
Motorcycle Trust 2003-4, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to
[                     ],
or registered assigns, the principal sum of 
                      
($                  )
payable on the earlier of the Distribution Date occurring in April 2011 (the
“Class B Final Distribution Date”) and the Redemption Date, if any, pursuant to
Section 10.01 of the Indenture referred to on the reverse hereof.

 

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in
Section 3.01 of the Indenture.  Interest
on this Note will accrue for each Distribution Date from the most recent Distribution
Date on which interest has been paid to but excluding such Distribution Date
or, if no interest has yet been paid, from the Closing Date.  Interest will be computed on the basis of a
360-day year of twelve 30-day months. 
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

 

D-1

 

The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts. 
All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and
then to the unpaid principal of this Note.

 

Reference
is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this
Note.

 

Unless
the certificate of authentication hereon has been executed by the Indenture
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

 

D-2

 

IN
WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
or in facsimile, by an Authorized Officer, as of the date set forth below.

 

	
  Date:
  

  	
   

  	
   

  	
  HARLEY-DAVIDSON
  MOTORCYCLE

  
	
   

  	
   

  	
  TRUST
  2003-4

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON
  TRUST COMPANY, not in its

  individual capacity but solely on behalf of the 

  Issuer as Owner Trustee, under the Trust 

  Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
												

 

D-3

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This
is one of the Notes designated above and referred to in the within-mentioned
Indenture.

 

	
   

  	
  BNY
  MIDWEST TRUST COMPANY,

  
	
   

  	
  not
  in its individual capacity but solely as Indenture

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

D-4

 

[REVERSE OF CLASS B NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its       % Harley-Davidson Motorcycle Contract,
Class B (the “Class B Notes”), all issued under an Indenture, dated as of
October 1, 2003 (the “Indenture”), between the Issuer and BNY Midwest Trust
Company, as Indenture Trustee (the “Indenture Trustee”), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. 
The Notes are subject to all terms of the Indenture.  All terms used in this Note that are defined
in the Indenture, as supplemented or amended, shall have the meanings assigned
to them in or pursuant to the Indenture, as so supplemented or amended.

 

The
Class B Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture subject to
the priorities of allocations as to interest and principal payments as
described in the Sale and Servicing Agreement.

 

Principal
of the Class B Notes will be payable on the earlier of the Class B Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.01(a)
or 10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class B Notes shall be due and payable on the date on which following the
occurrence of an Event of Default on which the maturity of the Notes shall have
been accelerated in the manner provided in the Indenture.  All principal payments on the Class B Notes
shall be made pro rata to the Class B Noteholders entitled thereto.

 

Payments
of interest on this Note due and payable on each Distribution Date shall be
made by wire transfer to the account of the Person whose name appears as the
Registered Holder of this Note (or one or more Predecessor Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Notes registered on the Record Date in the name of nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will
be made by wire transfer in immediately available funds to the account
designated by such nominee.  Such checks
shall be mailed to the Person entitled thereto at the address of such Person as
it appears on the Note Register as of the applicable Record Date without
requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) affected by any payments made
on any Distribution Date shall be binding upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon.  If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Distribution Date, then the Indenture
Trustee, in the name of and on behalf of the Issuer, will notify the Person who
was the Registered Holder hereof as of the Record Date preceding such
Distribution Date by notice mailed within five days of such Distribution Date
and the amount then due and payable shall be payable only upon presentation and
surrender of this Note at the Indenture Trustee’s principal Corporate Trust
Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located in the City of Chicago, Illinois.

 

The
Issuer shall pay interest on overdue installments of interest at the Class B
Rate to the extent lawful.

 

D-5

 

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Seller, on any Distribution Date on or after the date on which the Pool Balance
is less than 10% of the Aggregate Principal Balance as of the Cutoff Date.

 

As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new program, and such other
documents as the Indenture Trustee may require, and thereupon one or more new
Class B Notes of authorized denomination and in the same aggregate principal
amount will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

 

Each
Noteholder, by acceptance of a Note or 
a beneficial interest in a Note covenants and agrees that no recourse
may be taken, directly or indirectly, with respect to the obligations of the
Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in their
individual capacities, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in their individual capacities, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in their individual capacities, except as any such Person may
have expressly agreed and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

 

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against the Trust
Depositor or the Issuer, or join in any institution against the Trust Depositor
or the Issuer of any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Transaction Documents.

 

The
Issuer has entered into the Indenture, and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness secured by the
Collateral and that the Issuer will be disregarded as a separate entity for
federal income tax purposes pursuant to Treasury Regulations Section
301.7701-3(b)(1)(ii).  Each Noteholder,
by acceptance of a Note or a beneficial interest in a Note, agrees to treat the
Notes for

 

D-6

 

federal, state and local income, single
business and franchise tax purposes as indebtedness of the Issuer.

 

Prior
to the due presentment for registration of transfer of this Note, the Issuer
and the Indenture Trustee and any agent of the Issuer, the Indenture Trustee
may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Note be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and
the rights of the Holders of the Notes under the Indenture at any time by the
Issuer and the consent of the Modified Required Holders.  The Indenture also contains provisions
permitting the Holders of Notes representing specified percentages of the
Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to
waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and
binding upon such Holders and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange hereof or
in lieu hereof whether or not notation of such consent or waiver is made upon
this Note.  The Indenture also permits
the Indenture Trustee to amend or waive certain terms and conditions set forth
in the Indenture without the consent of Holders of the Notes issued thereunder.

 

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note is
deemed to represent that (i) it is not, and is not acquiring a Note or a
beneficial interest in a Note on behalf of or with “plan assets” (as determined
under Department of Labor Regulation Section 2510.3-101 or otherwise) of a
Plan, or any employee benefit plan subject to Similar Law, or (ii) its
acquisition and holding of a Note or a beneficial interest in a Note do not
give rise to a nonexempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code, or any Similar Law. 
Each Noteholder, by acceptance of a Note or a beneficial interest in a
Note is deemed to make one of the foregoing representations.

 

The
Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

 

This
Note and the Indenture shall be construed in accordance with the laws of the
State of Illinois, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such laws.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place, and rate, and in the coin or currency herein prescribed.

 

D-7

 

EXHIBIT E

 

FORM OF ASSIGNMENT

 

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

 

PLEASE
INSERT SOCIAL SECURITY OR

OTHER
IDENTIFYING NUMBER OF ASSIGNEE

 

 

 

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

 

 

the
within Note, and all rights thereunder, hereby irrevocably constituting and
appointing

 

 

to
transfer said Note on the books kept for registration thereof, with full power
of substitution in the premises.

 

Dated:

 

	
  Signature
  Guaranteed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  must be guaranteed by an eligible guarantor institution which is a
  participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
  similar signature guarantee program.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Notice:  The signature(s) on this assignment must
  correspond with the name(s) as it appears on the face of the within Note in
  every particular, without alteration or enlargement or any change whatsoever.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Authorized
  Officer)

  	
   

  

 

E-1

 

EXHIBIT F

 

FORM OF NOTE DEPOSITORY AGREEMENT

 

 

F-1

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