Document:

Exhibit
4.1

 

Execution
Copy

 

 

TRUST AGREEMENT

 

by and between

 

HARLEY-DAVIDSON
CUSTOMER FUNDING CORP.,

as Trust
Depositor,

 

and

 

WILMINGTON TRUST
COMPANY,

as Owner Trustee

 

 

Dated as of June 15, 2009

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE
  ONE

  	
  DEFINITIONS

  	
  1

  
	
  Section 1.01.

  	
  Capitalized Terms

  	
  1

  
	
  Section 1.02.

  	
  Other Definitional Provisions

  	
  3

  
	
  Section 1.03.

  	
  Usage of Terms

  	
  3

  
	
  Section 1.04.

  	
  Section References

  	
  3

  
	
  Section 1.05.

  	
  Accounting Terms

  	
  3

  
	
  ARTICLE
  TWO

  	
  ORGANIZATION

  	
  4

  
	
  Section 2.01.

  	
  Name

  	
  4

  
	
  Section 2.02.

  	
  Office

  	
  4

  
	
  Section 2.03.

  	
  Purposes and Powers

  	
  4

  
	
  Section 2.04.

  	
  Appointment of Owner Trustee

  	
  5

  
	
  Section 2.05.

  	
  Initial Capital Contribution of Owner Trust
  Estate

  	
  5

  
	
  Section 2.06.

  	
  Declaration of Trust

  	
  5

  
	
  Section 2.07.

  	
  Liability of Trust Depositor

  	
  5

  
	
  Section 2.08.

  	
  Title to Trust Property

  	
  5

  
	
  Section 2.09.

  	
  Situs of Trust

  	
  6

  
	
  Section 2.10.

  	
  Representations and Warranties of the Trust
  Depositor

  	
  6

  
	
  Section 2.11.

  	
  Federal Income Tax Treatment

  	
  7

  
	
  Section 2.12.

  	
  Texas State Tax Matters

  	
  7

  
	
  ARTICLE
  THREE

  	
  TRUST CERTIFICATES AND
  TRANSFER OF INTERESTS

  	
  8

  
	
  Section 3.01.

  	
  Initial Ownership

  	
  8

  
	
  Section 3.02.

  	
  The Trust Certificate

  	
  8

  
	
  Section 3.03.

  	
  Authentication and Delivery of Trust Certificates

  	
  8

  
	
  Section 3.04.

  	
  Registration of Transfer and Exchange of Trust
  Certificates

  	
  8

  
	
  Section 3.05.

  	
  Mutilated, Destroyed, Lost or Stolen Trust
  Certificates

  	
  9

  
	
  Section 3.06.

  	
  Person Deemed Owner

  	
  10

  
	
  Section 3.07.

  	
  Access to List of Certificateholders’ Name and
  Address

  	
  10

  
	
  Section 3.08.

  	
  Maintenance of Office or Agency

  	
  10

  
	
  Section 3.09.

  	
  Trust Certificate

  	
  10

  
	
  Section 3.10.

  	
  Appointment of Paying Agent

  	
  10

  
	
  Section 3.11.

  	
  Ownership by Trust Depositor of Trust Certificate

  	
  11

  
	
  Section 3.12.

  	
  Repayment of Trust Certificates

  	
  11

  
	
  ARTICLE
  FOUR

  	
  ACTIONS BY OWNER
  TRUSTEE AND CERTIFICATEHOLDERS

  	
  11

  
	
  Section 4.01.

  	
  Prior Notice to Owner with Respect to Certain
  Matters

  	
  11

  
	
  Section 4.02.

  	
  Action by Owner with Respect to Certain Matters

  	
  12

  
	
  Section 4.03.

  	
  Action by Owners with Respect to Bankruptcy

  	
  12

  
	
  Section 4.04.

  	
  Restrictions on Owners’ Power

  	
  12

  
	
  Section 4.05.

  	
  Majority of the Trust Certificates Control

  	
  12

  
	
  ARTICLE
  FIVE

  	
  APPLICATION OF TRUST
  FUNDS; CERTAIN DUTIES

  	
  12

  
	
  Section 5.01.

  	
  Application of Trust Funds

  	
  12

  
	
  Section 5.02.

  	
  Method of Payment

  	
  13

  
	
  Section 5.03.

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

  	
  13

  
	
  Section 5.04.

  	
  Signature on Returns; Tax Matters Partner

  	
  14

  
	
  ARTICLE
  SIX

  	
  AUTHORITY AND DUTIES OF
  OWNER TRUSTEE

  	
  14

  
	
  Section 6.01.

  	
  General Authority

  	
  14

  
	
  Section 6.02.

  	
  General Duties

  	
  14

  
	
  Section 6.03.

  	
  Action Upon Instruction

  	
  14

  
	
  Section 6.04.

  	
  No
  Duties Except as Specified in this Agreement or in Instructions

  	
  15

  

 

 

	
  Section 6.05.

  	
  No Action Except Under Specified Documents or
  Instructions

  	
  16

  
	
  Section 6.06.

  	
  Restrictions

  	
  16

  
	
  Section 6.07.

  	
  Pennsylvania Motor Vehicle Sales Finance Act
  Licenses

  	
  16

  
	
  ARTICLE
  SEVEN

  	
  CONCERNING THE OWNER
  TRUSTEE

  	
  16

  
	
  Section 7.01.

  	
  Acceptance of Trusts and Duties

  	
  16

  
	
  Section 7.02.

  	
  Furnishing of Documents

  	
  17

  
	
  Section 7.03.

  	
  Representations and Warranties

  	
  17

  
	
  Section 7.04.

  	
  Reliance; Advice of Counsel

  	
  18

  
	
  Section 7.05.

  	
  Not Acting in Individual Capacity

  	
  18

  
	
  Section 7.06.

  	
  Owner Trustee Not Liable for Trust Certificate,
  Notes or Contracts

  	
  18

  
	
  Section 7.07.

  	
  Owner Trustee May Own Trust Certificate and
  Notes

  	
  19

  
	
  ARTICLE
  EIGHT

  	
  COMPENSATION OF OWNER
  TRUSTEE

  	
  19

  
	
  Section 8.01.

  	
  Owner Trustee’s Fees and Expenses

  	
  19

  
	
  Section 8.02.

  	
  Indemnification

  	
  19

  
	
  Section 8.03.

  	
  Payments to the Owner Trustee

  	
  19

  
	
  ARTICLE
  NINE

  	
  TERMINATION OF TRUST
  AGREEMENT

  	
  20

  
	
  Section 9.01.

  	
  Termination of Trust Agreement

  	
  20

  
	
  ARTICLE
  TEN

  	
  SUCCESSOR OWNER
  TRUSTEES AND ADDITIONAL OWNER TRUSTEES

  	
  20

  
	
  Section 10.01.

  	
  Eligibility Requirements for Owner Trustee

  	
  20

  
	
  Section 10.02.

  	
  Resignation or Removal of Owner Trustee

  	
  21

  
	
  Section 10.03.

  	
  Successor Owner Trustee

  	
  21

  
	
  Section 10.04.

  	
  Merger or Consolidation of Owner Trustee

  	
  22

  
	
  Section 10.05.

  	
  Appointment of Co-Trustee or Separate Trustee

  	
  22

  
	
  ARTICLE
  ELEVEN

  	
  MISCELLANEOUS

  	
  23

  
	
  Section 11.01.

  	
  Supplements and Amendments

  	
  23

  
	
  Section 11.02.

  	
  No Legal Title to Trust Estate in Owner

  	
  24

  
	
  Section 11.03.

  	
  Limitations on Rights of Others

  	
  24

  
	
  Section 11.04.

  	
  Notices

  	
  24

  
	
  Section 11.05.

  	
  Severability of Provisions

  	
  25

  
	
  Section 11.06.

  	
  Counterparts

  	
  25

  
	
  Section 11.07.

  	
  Successors and Assigns

  	
  25

  
	
  Section 11.08.

  	
  Covenants of the Trust Depositor

  	
  25

  
	
  Section 11.09.

  	
  No Petition

  	
  25

  
	
  Section 11.10.

  	
  No Recourse

  	
  26

  
	
  Section 11.11.

  	
  Headings

  	
  26

  
	
  Section 11.12.

  	
  Governing Law

  	
  26

  
	
  Section 11.13.

  	
  Trust Certificate Transfer Restrictions

  	
  26

  
	
  Section 11.14.

  	
  Trust Depositor Payment Obligation

  	
  26

  
	
  Section 11.15.

  	
  Certificateholder’s TALF-Related Signing
  Authority

  	
  26

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
  Exhibit A -
  Form of Certificate of Trust

  	
  A-1

  
	
  Exhibit B -
  Form of Trust Certificate

  	
  B-1

  

 

ii

 

TRUST AGREEMENT dated as
of June 15, 2009, 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 initial 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 July 1,
2009, 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 an employee benefit
plan’s or a plan’s investment in the entity.

 

“Certificate
Distribution Account” means the account established and maintained
as such pursuant to Section 5.01.

 

“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 a Trust Certificate is registered in the
Certificate Register.

 

1

 

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

 

“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 July 1,
2009 between the Trust and The Bank of New York Mellon Trust Company, N.A.

 

“Owner”
means each Holder of a 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 1100 North Market Street, Wilmington, Delaware 19890-1605
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.

 

“Qualified
Institutional Buyer” means a “qualified institutional buyer” as
defined in Rule 144A under the Securities Act.

 

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

 

“Sale and
Servicing Agreement”  means the Sale
and Servicing Agreement, dated as of July 1, 2009, among the Trust, as
Issuer, the Trust Depositor, Harley-Davidson Credit, as servicer, and The Bank
of New York Mellon Trust Company, N.A., as Indenture Trustee, as the same may
be amended or supplemented from time to time.

 

2

 

“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 a trust certificate evidencing the beneficial
equity interest of an Owner in the Trust, 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 the Certificate Distribution Account, 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.

 

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.

 

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.

 

3

 

ARTICLE TWO

 

ORGANIZATION

 

Section 2.01.        Name.  The Trust
created hereby shall be known as “Harley-Davidson Motorcycle
Trust 2009-2”, 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 Owners 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 Owners, 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 Certificates pursuant
to this Agreement and to sell the Notes;

 

(ii)           with
the proceeds of the sale of the Notes, to purchase the Contracts, to fund the
Reserve Fund 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 Owners 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
enter into derivative transactions in connection with the Notes or otherwise;

 

(vi)          to
execute and deliver and, as applicable, enter into and perform its obligations
under, one or more certifications as to TALF eligibility, one or more indemnity
undertakings and other documents, certificates, notices, press releases, agreements
and instruments contemplated thereby or related thereto or otherwise necessary
or incidental to qualifying the Class A Notes as “eligible collateral”
under the Federal Reserve Bank of New York’s Term Asset-Backed Securities Loan
Facility;

 

(vii)         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

 

4

 

(viii)        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 Owners 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 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.  Notwithstanding Section 2.03(a)(iii) above,
the Trust shall not assign, sell or transfer the Contracts except as
contemplated or permitted by the Indenture or the Sale and Servicing Agreement,
without the prior consent of the Trust Depositor.

 

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.  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 Owners, 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, no Certificateholder shall 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 

 

5

 

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 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, and where the failure to so qualify or
obtain such licenses and approvals would have a material adverse effect on the
Trust, the Contracts, the operations or business of the Servicer, or the
ability of the Trust Depositor to perform its obligations under this Agreement.

 

(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; which breach, default, conflict, Lien or violation in any case
would have a material adverse effect 

 

6

 

on
the Trust, the Contracts, the operations or business of the Servicer, or the
ability of the Trust Depositor to perform its obligations under this Agreement.

 

(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 Certificates, (B) seeking
to prevent the issuance of the Trust Certificates 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 Certificates or (D) involving the Trust
Depositor and which would adversely affect the federal income tax or other
federal, state or local tax attributes of the Trust Certificates.

 

Section 2.11.        Tax Treatment.

 

It is the intention of
the Trust Depositor that (i) so long as there is only one
Certificateholder, 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 (and, in such case, 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 sole Trust Certificate) as the sole Certificateholder and (ii) if
there is more than one Certificateholder, the Issuer shall be treated as a
partnership for federal income, state and local income and single business tax
and any other income taxes.  The parties
agree that, unless otherwise required by appropriate tax authorities, the Trust
will file or cause to be filed annual or other necessary returns, reports and
other forms consistent with the characterization of the Trust as provided in
the preceding sentence for such tax purposes.

 

Section 2.12.        Texas State Tax Matters.

 

For purposes of Texas
franchise taxes, it is the intention of the parties that the Trust be
classified (i) as a passive entity within the meaning of Sections 171.0002
through 171.0004 of the Texas Tax Code, and (ii) not as a “business trust”
within the meaning of Treasury Regulations Section 301.7701-4(b).  The Trust Depositor and each
Certificateholder, by acceptance of a Certificate, agree to treat the Trust
consistent with such intention, unless otherwise required by law.  Notwithstanding anything to the contrary
contained herein, nothing in this Agreement should be read to imply that the
Trust is doing business in Texas or has sufficient nexus with Texas in order
for the Texas franchise tax to apply to the Trust.

 

7

 

ARTICLE THREE

 

TRUST CERTIFICATES AND TRANSFER OF INTERESTS

 

Section 3.01.        Initial Ownership.  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 Certificates, the Trust Depositor shall be
the sole beneficiary of the Trust.

 

Section 3.02.        The Trust Certificates. 
The Trust Certificates shall be issued in minimum denominations of
$100,000 and integral multiples thereof; provided, however, that one Trust
Certificate may be issued in such denomination as required to include any
residual amount.  The Trust Certificates
shall be substantially in the form of Exhibit B
hereto.  The Trust Certificates 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. 
A 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.  Each Trust Certificate
shall be dated the date of its authentication.

 

Section 3.03.        Authentication and Delivery of Trust Certificates. 
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.  No Trust
Certificate shall 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 Certificates
will be entitled to the benefits of this Agreement.

 

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

 

(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 Certificates and transfers and
exchanges of the Trust Certificates as provided herein.  The Owner Trustee is hereby initially
appointed Certificate Registrar for the purpose of registering the Trust
Certificates and transfers and exchanges of the Trust Certificates 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.

 

8

 

(b)           Upon surrender for registration of transfer of a 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, a new
Trust Certificate having the same aggregate 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.

 

(d)           No transfer of a 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 a Trust Certificate unless prior to such
transfer the Owner Trustee shall have received an Opinion of Counsel that (x) the
transfer of such Trust Certificate is being made pursuant to an effective
registration under the Securities Act of 1933 or is exempt from the
registration requirements of the Securities Act of 1933 and (y) such transfer
will not cause the Trust to be treated as an association (or a publicly traded
partnership) taxable as a corporation for federal income tax purposes. 
Any transferee of a Trust Certificate must be either an Affiliate of the
Trust Depositor or a Qualified Institutional Buyer.

 

Notwithstanding anything
else to the contrary herein, any purported transfer of a Trust Certificate to
or on behalf of a Benefit Plan or utilizing the assets of a Benefit Plan shall
be void and of no effect.  The Owner
Trustee shall not be obligated to register any transfer of a Trust Certificate
unless each of the transferor and the transferee have certified to the Owner
Trustee that such transfer does not violate any of the transfer restrictions
stated herein.  The Owner Trustee shall
not be liable to any Person for registering any transfer based on such
certifications.

 

(e)           No service charge shall be made for any registration
of transfer or exchange of a 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 a Trust Certificate.

 

(f)            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
Certificates.  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.

 

9

 

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 Certificateholders’ 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.  If
three or more Certificateholders or one or more Holders of Certificates
evidencing, in the aggregate, not less than 25% of the Certificate Balance
apply in writing to the Owner Trustee, and such application states that the
applicants desire to communicate with other Certificateholders with respect to
their rights under this Agreement or under the Certificates and such
application is accompanied by a copy of the communication that such applicants
propose to transmit, then the Owner Trustee shall, within five Business Days
after the receipt of such application, afford such applicants access during
normal business hours to the current list of Certificateholders.  Each Certificateholder, by receiving and holding
a 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 such 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 Certificates 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 Certificates 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.

 

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

 

Section 3.10.        Appointment of Paying Agent. 
The Paying Agent shall make distributions to the Certificateholders from
the Certificate Distribution Account pursuant to Section 5.01(a) and
shall report the amounts of such distributions to the Owner Trustee.  The Paying Agent initially shall be
Wilmington 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 Wilmington 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 

 

10

 

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 Initial Trust
Certificates.  The Trust Depositor shall on the Closing Date
hold the 100% of the Trust Certificates.

 

Section 3.12.        Repayment of Trust Certificates. 
In the event of an optional purchase pursuant to Section 7.10 of
the Sale and Servicing Agreement, the Trust Certificates will be prepaid in
whole, but not in part, at an aggregate prepayment price equal to the aggregate
Certificate Balance of all the Trust Certificates.

 

ARTICLE FOUR

 

ACTIONS BY OWNER
TRUSTEE AND CERTIFICATEHOLDERS

 

Section 4.01.        Prior Notice to Owners 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 Certificateholders in writing of the proposed action,
the Indenture Trustee shall have consented to such action in the event any Notes
are outstanding and the Owners shall not have notified the Owner Trustee in
writing prior to the 30th day after such notice is given that such Owners have
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);

 

(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 Owners;

 

(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 Owners; or

 

11

 

(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 Owners 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
Owners, 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 Owners.

 

Section 4.03.        Action by Owners 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
all Owners (including the Trust Depositor) and the delivery to the Owner
Trustee by each such Owner of a certificate certifying that such Owner
reasonably believes that the Trust is insolvent.

 

Section 4.04.        Restrictions on Owners’ Power. 
The Owners 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.

 

Section 4.05.        Majority of the Trust Certificates Control. 
Except as otherwise expressly provided herein, any action that may be
taken by the Certificateholders under this Agreement may be taken by the
Holders of the Trust Certificates evidencing not less than a majority of the
Certificate Balance.  Except as expressly
provided herein, any written notice of the Certificateholders delivered
pursuant to this Agreement shall be effective if signed by Holders of the Trust
Certificates evidencing not less than a majority of the Certificate Balance at
the time of the delivery of such notice.

 

ARTICLE FIVE

 

APPLICATION OF
TRUST FUNDS;

CERTAIN DUTIES

 

Section 5.01.        Establishment of Trust Account; Application of
Trust Funds.

 

(a)           On or before the Distribution Date on which the Notes
have been paid in full, the Owner Trustee, for the benefit of the
Certificateholders, shall establish and maintain (or shall cause to be
established and maintained) in the name of the Issuer an Eligible Account (the “Certificate Distribution Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Certificateholders.

 

12

 

The Issuer shall possess all right, title and interest
in funds on deposit from time to time in the Certificate Distribution Account
and in the proceeds thereof.  Except as
otherwise expressly provided herein, the Certificate Distribution Account shall
be under the sole dominion and control of the Owner Trustee for the benefit of
the Certificateholders. If, at any time, the Certificate Distribution Account
ceases to be an Eligible Account, the Owner Trustee (or the Depositor on behalf
of the Owner Trustee, if the Certificate Distribution Account is not then held
by the Owner Trustee or an Affiliate thereof) shall within ten Business Days
establish a new Certificate Distribution Account as an Eligible Account and
shall transfer any cash and/or any investments to such new Certificate
Distribution Account. Monies on deposit in the Certificate Distribution Account
may be invested in Eligible Investments upon the terms set forth in Section 5.05
of the Sale and Servicing Agreement, as if the Certificate Distribution Account
were a “Trust Account”.

 

(b)           On each Distribution Date, the Paying Agent will
distribute to the Certificateholders from amounts on deposit in the Certificate
Distribution Account, on a pro rata basis in accordance with their Certificate
Balance, amounts received pursuant to Section 7.05 of the Sale and
Servicing Agreement with respect to such Distribution Date.

 

(c)           On each Distribution Date, the Paying Agent shall send
to the Certificateholders 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.

 

(d)           In the event that any withholding tax is imposed on
the Trust’s payment (or allocation of income) to the Certificateholders, such
tax shall reduce the amount otherwise distributable to the Certificateholders
in accordance with this Section.  The
Paying Agent is hereby authorized and directed to retain from amounts otherwise
distributable to the Owners 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 any 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 Certificates, distributions
required to be made to the Certificateholders of record on the related Record
Date shall be made by check mailed to such Certificateholders at the address of
such Holders appearing in the Certificate Register.

 

Section 5.03.        Accounting and Reports to the Certificateholders,
Owners, 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 Owners, as may be required by the Code and applicable Treasury
Regulations, such information as may be required to enable each 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 

 

13

 

accordance with Section 5.01(c) with respect
to income or distributions to Owners. 
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 Trust Depositor shall be designated the “tax matters
partner” of the Trust pursuant to Section 6231(a)(7)(A) of
the Code and applicable Treasury Regulations.

 

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 Owners may by written instruction direct
the Owner Trustee in the management of the Trust.

 

14

 

(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
Owners 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 Owners 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 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 Owners, 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
Owners 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 Owners, 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.

 

15

 

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 Owners shall not direct the Owner Trustee
to take actions that would violate the provisions of this Section.

 

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;

 

16

 

(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 Certificates, 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 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 any Owner, unless such 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 Owners 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 Owners 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 

 

17

 

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 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 Certificates (other than the signature and countersignature of the Owner
Trustee and the certificate of authentication on the Trust Certificates) 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 Certificates (other than the signature and
countersignature of the Owner Trustee and the certificate of authentication on
the Trust Certificates) 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 

 

18

 

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 Certificateholders under this Agreement or the Noteholders
under the Indenture or the Sale and Servicing Agreement, 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 a Trust Certificate or Notes
and 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.

 

19

 

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. 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 Certificateholders shall surrender their Trust
Certificates to the Paying Agent for payment of the final distribution and
cancellation, shall be given by the Owner Trustee by letter to the
Certificateholders 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 Certificates shall be made upon
presentation and surrender of the Trust Certificates 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 Certificates 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
Certificateholders.  Upon presentation
and surrender of a Trust Certificate, the Paying Agent shall cause to be
distributed to the Certificateholders 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 

 

20

 

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.

 

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 

 

21

 

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 Certificateholders, 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.

 

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 

 

22

 

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 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
Certificateholders, 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 Certificateholders.

 

(b)           This Agreement may also be amended from time to time
by the Trust Depositor, and the Owner Trustee, with the consent of the Required
Holders and the Holders of Trust Certificates evidencing not less than a majority
of the Certificate Balance, 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
Certificateholders; 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

 

23

 

the Noteholders or the Certificateholders, or (ii) eliminate
the Certificateholders’ 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 Trust
Certificates affected thereby.

 

(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
any Certificateholder, the 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 obtaining such
consents (and any other consents of the Certificateholders provided for in this
Agreement or in any other Transaction Document) and of evidencing the
authorization of the execution thereof by the Certificateholders 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 Owners. 
No Owner shall have legal title to any part of the Trust Estate.  The Owners 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 Owners 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 Owners,
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 

 

24

 

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 Certificates 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.

 

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 Certificates, 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 

 

25

 

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

 

Section 11.10.      No Recourse.  Each
Certificateholder by accepting a 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
Certificates 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 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. 
No Trust Certificate may be acquired by or for the account of a Benefit
Plan.  By accepting and holding a Trust
Certificate, the Holder thereof shall be required 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.

 

Section 11.15.      Certificateholder’s TALF-Related Signing Authority. 
In connection with the Federal Reserve Bank of New York’s Term
Asset-Backed Securities Loan Facility (“TALF”), the
Trust Depositor shall be authorized to execute and deliver on behalf of the
Trust and cause the Trust to perform (i) any Term Asset-Backed Securities
Loan Facility Undertaking, (ii) any Certification as to TALF Eligibility, (iii) any
Indemnity Undertaking and (iv) any other documents, certificates,
agreements and instruments contemplated thereby or related thereto or otherwise
necessary or incidental to qualifying under TALF.  Any action taken on behalf of the Trust by
the Trust Depositor prior to the date hereof with respect to TALF, including
execution of any Indemnity Undertaking and Certificate as to TALF Eligibility,
is hereby ratified.

 

[signature page follows]

 

26

 

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: Acting
  President, Vice President,

  
	
   

  	
   

  	
   Treasurer and
  Assistant Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.
  Christopher Murphy

  
	
   

  	
  Printed Name: J.
  Christopher Murphy

  
	
   

  	
  Title: Financial Services Officer

  

 

Signature
Page to Trust

Agreement

 

 

EXHIBIT A

 

FORM OF
CERTIFICATE OF TRUST OF

Harley-Davidson
Motorcycle Trust 2009-2

 

This Certificate of Trust
of Harley-Davidson Motorcycle Trust 2009-2 (the “Trust”),
dated
                              ,
2009, 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 2009-2.

 

2.             Delaware Trustee.  The name and business address of the Owner
Trustee of the Trust in the State of Delaware is Wilmington Trust Company, 1100
North Market Street, Wilmington, Delaware l9890-1605.

 

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 A 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.

 

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE
ACQUIRED OR HELD BY OR FOR THE ACCOUNT OF OR WITH THE ASSETS OF (A) AN
EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)), THAT IS SUBJECT
TO TITLE I OF ERISA, (B) A PLAN SUBJECT TO SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED OR (C) ANY ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF AN EMPLOYEE BENEFIT PLAN’S
OR A PLAN’S INVESTMENT IN THE ENTITY (A “BENEFIT PLAN”).

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2009-2 CERTIFICATE

 

	
  NO.

  	
   

  	
  Initial Certificate Balance
  $[                  ]

  

 

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 2009-2 (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 June 15, 2009 (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 July 1,
2009 (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 The Bank of New York
Mellon Trust Company, N.A., as Indenture Trustee (the “Indenture Trustee”)

 

 

or (iii) the
Indenture, dated as of July 1, 2009 (the “Indenture”),
between the Trust and the Indenture Trustee.

 

This Trust Certificate is
the duly authorized Trust Certificate designated as “Harley-Davidson
Motorcycle Trust 2009-2 Certificate”   (the “Trust Certificate”).  Issued under the Indenture are four classes
of notes designated as “[    ]% Motorcycle
Contract Backed Notes, Class A-1”, “[    ]% Motorcycle Contract Backed Notes, Class A-2”, “[    ]% Motorcycle
Contract Backed Notes, Class A-3”  and
“[    ]% Motorcycle Contract
Backed Notes, Class A-4”  (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
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), any debt insurance policy 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 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
such 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 Certificateholders that, in the event there is only
one Certificateholder, 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 Depositor and the Certificateholders agree 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.

 

Solely in the event the
Trust Certificates are held by more than a single Certificateholder, it is the
intent of the Trust Depositor, the Servicer and the Certificateholders that,
solely for purposes of federal income, state and local income and single
business tax and any other income taxes, the Trust will be treated as a
partnership and the Certificateholders will be treated as partners in the
partnership.  The purchaser hereof and
the other Certificateholders, by acceptance of a Trust Certificate, agree to
treat, and to take no action inconsistent with the treatment of, the Trust
Certificates for such tax purposes as partnership interests in the Issuer.

 

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]

 

This 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 Certificateholders under the Trust Agreement at any time by the
Trust Depositor and the Owner Trustee with the consent of the Holders of
Trust Certificates evidencing not less than a majority of the Certificate
Balance and the Required Holders.  Any such consent by the
Holder of this Trust Certificate shall be conclusive and binding on such Holder
and on all future Holders 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 Holders of any of the Trust Certificates.

 

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 one or more new Trust Certificates 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 Certificateholders 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.  The Servicer 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 Certificates; 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 Pool
Balance on the Cutoff Date.

 

This Trust Certificate
may not be acquired by a Benefit Plan.  The
Holder hereof, by accepting a beneficial interest in this Trust Certificate,
shall be required 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 2009-2

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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 a 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
4.2

 

Execution Copy

 

 

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2009-2,

as Issuer,

 

 

and

 

 

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

not in its individual capacity but solely in its capacity

as Indenture Trustee

 

 

 

 

INDENTURE

 

Dated as of July 1, 2009

 

 

 

 

Motorcycle Contract Backed Notes

 

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  	
   

  	
  Indenture

  	
   

  
	
  Section

  	
   

  	
  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

 

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE
  ONE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  DEFINITIONS

  	
  2

  
	
  SECTION 1.02.

  	
  INCORPORATION
  BY REFERENCE OF TRUST INDENTURE ACT

  	
  8

  
	
  SECTION 1.03.

  	
  RULES
  OF CONSTRUCTION

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  FORM

  	
  9

  
	
  SECTION 2.02.

  	
  EXECUTION,
  AUTHENTICATION AND DELIVERY

  	
  9

  
	
  SECTION 2.03.

  	
  TEMPORARY
  NOTES

  	
  10

  
	
  SECTION 2.04.

  	
  REGISTRATION;
  REGISTRATION OF TRANSFER AND EXCHANGE

  	
  10

  
	
  SECTION 2.05.

  	
  MUTILATED,
  DESTROYED, LOST OR STOLEN NOTES

  	
  12

  
	
  SECTION 2.06.

  	
  PERSONS
  DEEMED OWNER

  	
  13

  
	
  SECTION 2.07.

  	
  PAYMENT
  OF PRINCIPAL AND INTEREST; DEFAULTED INTEREST

  	
  13

  
	
  SECTION 2.08.

  	
  CANCELLATION

  	
  13

  
	
  SECTION 2.09.

  	
  BOOK-ENTRY
  NOTES

  	
  14

  
	
  SECTION 2.10.

  	
  NOTICES
  TO CLEARING AGENCY

  	
  14

  
	
  SECTION 2.11.

  	
  DEFINITIVE
  NOTES

  	
  14

  
	
  SECTION 2.12.

  	
  RELEASE
  OF COLLATERAL

  	
  15

  
	
  SECTION 2.13.

  	
  TAX
  TREATMENT

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  PAYMENT
  OF PRINCIPAL AND INTEREST

  	
  15

  
	
  SECTION 3.02.

  	
  MAINTENANCE
  OF OFFICE OR AGENCY

  	
  16

  
	
  SECTION 3.03.

  	
  MONEY
  FOR PAYMENTS TO BE HELD IN TRUST

  	
  16

  
	
  SECTION 3.04.

  	
  EXISTENCE

  	
  17

  
	
  SECTION 3.05.

  	
  PROTECTION
  OF COLLATERAL

  	
  17

  
	
  SECTION 3.06.

  	
  OPINIONS
  AS TO COLLATERAL

  	
  18

  
	
  SECTION 3.07.

  	
  PERFORMANCE
  OF OBLIGATIONS; SERVICING OF CONTRACTS

  	
  18

  
	
  SECTION 3.08.

  	
  NEGATIVE
  COVENANTS

  	
  19

  
	
  SECTION 3.09.

  	
  ANNUAL
  STATEMENT AS TO COMPLIANCE

  	
  19

  
	
  SECTION 3.10.

  	
  ISSUER
  MAY CONSOLIDATE, ETC. ONLY ON CERTAIN TERMS

  	
  20

  
	
  SECTION 3.11.

  	
  SUCCESSOR
  OR TRANSFEREE

  	
  21

  
	
  SECTION 3.12.

  	
  NO
  OTHER BUSINESS

  	
  21

  
	
  SECTION 3.13.

  	
  NO
  BORROWING

  	
  21

  
	
  SECTION 3.14.

  	
  SERVICER’S
  OBLIGATIONS

  	
  22

  
	
  SECTION 3.15.

  	
  GUARANTEES,
  LOANS ADVANCES AND OTHER LIABILITIES

  	
  22

  
	
  SECTION 3.16.

  	
  CAPITAL
  EXPENDITURES

  	
  22

  
	
  SECTION 3.17.

  	
  RESTRICTED
  PAYMENTS

  	
  22

  
	
  SECTION 3.18.

  	
  NOTICE
  OF EVENTS OF DEFAULT

  	
  22

  
	
  SECTION 3.19

  	
  FURTHER
  INSTRUMENTS AND ACTS

  	
  22

  

 

ii

 

	
  SECTION 3.20.

  	
  COMPLIANCE
  WITH LAWS

  	
  22

  
	
  SECTION 3.21.

  	
  AMENDMENTS
  OF SALE AND SERVICING AGREEMENT AND TRUST AGREEMENT

  	
  22

  
	
  SECTION 3.22.

  	
  REMOVAL
  OF ADMINISTRATOR

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  SATISFACTION
  AND DISCHARGE OF INDENTURE

  	
  23

  
	
  SECTION 4.02.

  	
  APPLICATION
  OF TRUST MONEY

  	
  24

  
	
  SECTION 4.03.

  	
  REPAYMENT
  OF MONEYS HELD BY PAYING AGENT

  	
  24

  
	
  SECTION 4.04.

  	
  RELEASE
  OF COLLATERAL

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REMEDIES

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  EVENTS
  OF DEFAULT

  	
  24

  
	
  SECTION 5.02.

  	
  RIGHTS
  UPON EVENT OF DEFAULT

  	
  25

  
	
  SECTION 5.03.

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

  	
  25

  
	
  SECTION 5.04.

  	
  REMEDIES

  	
  27

  
	
  SECTION 5.05.

  	
  OPTIONAL
  PRESERVATION OF THE CONTRACTS

  	
  28

  
	
  SECTION 5.06.

  	
  PRIORITIES

  	
  28

  
	
  SECTION 5.07.

  	
  LIMITATION
  OF SUITS

  	
  28

  
	
  SECTION 5.08. 

  	
  UNCONDITIONAL RIGHTS OF
  NOTEHOLDERS TO RECEIVE  PRINCIPAL AND INTEREST 

  	
  29 

  
	
  SECTION 5.09.

  	
  RESTORATION
  OF RIGHTS AND REMEDIES

  	
  29

  
	
  SECTION 5.10.

  	
  RIGHTS
  AND REMEDIES CUMULATIVE

  	
  29

  
	
  SECTION 5.11.

  	
  DELAY
  OR OMISSION NOT A WAIVER

  	
  30

  
	
  SECTION 5.12.

  	
  CONTROL
  BY NOTEHOLDERS

  	
  30

  
	
  SECTION 5.13.

  	
  WAIVER
  OF PAST DEFAULTS

  	
  30

  
	
  SECTION 5.14.

  	
  UNDERTAKING
  FOR COSTS

  	
  30

  
	
  SECTION 5.15.

  	
  WAIVER
  OF STAY OR EXTENSION LAWS

  	
  31

  
	
  SECTION 5.16.

  	
  ACTION
  ON NOTES

  	
  31

  
	
  SECTION 5.17.

  	
  PERFORMANCE
  AND ENFORCEMENT OF CERTAIN OBLIGATIONS

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  
	
   

  	
   

  	
   

  
	
  THE INDENTURE TRUSTEE

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  DUTIES
  OF INDENTURE TRUSTEE

  	
  32

  
	
  SECTION 6.02.

  	
  RIGHTS
  OF INDENTURE TRUSTEE

  	
  33

  
	
  SECTION 6.03.

  	
  INDIVIDUAL
  RIGHTS OF INDENTURE TRUSTEE

  	
  34

  
	
  SECTION 6.04.

  	
  INDENTURE
  TRUSTEE’S DISCLAIMER

  	
  34

  
	
  SECTION 6.05.

  	
  NOTICE
  OF DEFAULTS

  	
  34

  
	
  SECTION 6.06.

  	
  REPORTS
  BY INDENTURE TRUSTEE TO HOLDERS

  	
  34

  
	
  SECTION 6.07.

  	
  COMPENSATION
  AND INDEMNITY

  	
  34

  
	
  SECTION 6.08.

  	
  REPLACEMENT
  OF INDENTURE TRUSTEE

  	
  35

  
	
  SECTION 6.09.

  	
  SUCCESSOR
  INDENTURE TRUSTEE BY MERGER

  	
  36

  
	
  SECTION 6.10.

  	
  APPOINTMENT
  OF CO-INDENTURE TRUSTEE OR SEPARATE INDENTURE TRUSTEE

  	
  36

  
	
  SECTION 6.11.

  	
  ELIGIBILITY

  	
  37

  
	
  SECTION 6.12.

  	
  PENNSYLVANIA
  MOTOR VEHICLE SALES FINANCE ACT LICENSES

  	
  38

  
	
  SECTION 6.13.

  	
  PREFERENTIAL COLLECTION OF CLAIMS AGAINST
  ISSUER

  	
  38

  

 

iii

 

	
  SECTION 6.14.

  	
  REPRESENTATIONS AND WARRANTIES OF INDENTURE
  TRUSTEE

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  SEVEN

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NOTEHOLDERS’
  LISTS AND REPORTS

  	
  39

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  ISSUER TO FURNISH INDENTURE TRUSTEE NAMES AND
  ADDRESSES OF NOTEHOLDERS

  	
  39

  
	
  SECTION 7.02.

  	
  PRESERVATION OF INFORMATION: COMMUNICATION TO
  NOTEHOLDERS

  	
  39

  
	
  SECTION 7.03.

  	
  REPORTS BY ISSUER

  	
  40

  
	
  SECTION 7.04.

  	
  REPORTS BY INDENTURE TRUSTEE

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  EIGHT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCOUNTS,
  DISBURSEMENTS AND RELEASES

  	
  40

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  COLLECTION OF MONEY

  	
  40

  
	
  SECTION 8.02.

  	
  TRUST ACCOUNTS

  	
  41

  
	
  SECTION 8.03.

  	
  GENERAL PROVISIONS REGARDING ACCOUNTS

  	
  41

  
	
  SECTION 8.04.

  	
  RELEASE OF COLLATERAL

  	
  42

  
	
  SECTION 8.05.

  	
  OPINION OF COUNSEL

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  NINE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES 

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
  NOTEHOLDERS

  	
  43

  
	
  SECTION 9.02.

  	
  SUPPLEMENTAL INDENTURES WITH CONSENT OF
  NOTEHOLDERS

  	
  44

  
	
  SECTION 9.03.

  	
  EXECUTION OF SUPPLEMENTAL INDENTURES

  	
  45

  
	
  SECTION 9.04.

  	
  EFFECT OF SUPPLEMENTAL INDENTURE

  	
  45

  
	
  SECTION 9.05.

  	
  CONFORMITY WITH TRUST INDENTURE ACT

  	
  45

  
	
  SECTION 9.06.

  	
  REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REDEMPTION
  OF NOTES

  	
  45

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  REDEMPTION

  	
  45

  
	
  SECTION 10.02.

  	
  FORM OF REDEMPTION NOTICE

  	
  46

  
	
  SECTION 10.03.

  	
  NOTES PAYABLE ON REDEMPTION DATE

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  ELEVEN

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  COMPLIANCE CERTIFICATES AND OPINIONS, ETC.

  	
  47

  
	
  SECTION 11.02.

  	
  FORM OF DOCUMENTS DELIVERED TO INDENTURE
  TRUSTEE

  	
  48

  
	
  SECTION 11.03.

  	
  ACTS OF NOTEHOLDERS

  	
  49

  
	
  SECTION 11.04.

  	
  NOTICES

  	
  49

  
	
  SECTION 11.05.

  	
  NOTICES TO NOTEHOLDERS; WAIVER

  	
  49

  
	
  SECTION 11.06.

  	
  ALTERNATE PAYMENT AND NOTICE PROVISIONS

  	
  50

  
	
  SECTION 11.07.

  	
  EFFECT OF HEADINGS AND TABLE OF CONTENTS

  	
  50

  
	
  SECTION 11.08.

  	
  SUCCESSORS AND ASSIGNS

  	
  50

  
	
  SECTION 11.09.

  	
  SEPARABILITY

  	
  50

  
	
  SECTION 11.10.

  	
  BENEFITS OF INDENTURE

  	
  50

  
	
  SECTION 11.11.

  	
  LEGAL HOLIDAYS

  	
  50

  

 

iv

 

	
  SECTION 11.12.

  	
  GOVERNING LAW

  	
  51

  
	
  SECTION 11.13.

  	
  COUNTERPARTS

  	
  51

  
	
  SECTION 11.14.

  	
  RECORDING OF INDENTURE

  	
  51

  
	
  SECTION 11.15.

  	
  TRUST OBLIGATION

  	
  51

  
	
  SECTION 11.16.

  	
  NO PETITION

  	
  51

  
	
  SECTION 11.17.

  	
  INSPECTION

  	
  51

  
	
  SECTION 11.18.

  	
  CONFLICT WITH TRUST INDENTURE ACT

  	
  52

  
	
  SECTION 11.19.

  	
  DISCLAIMER AND SUBORDINATION

  	
  52

  

 

EXHIBITS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Exhibit A-1
  -

  	
  Form of
  Class A-1 Note

  	
  A-1-1

  
	
  Exhibit A-2
  -

  	
  Form of
  Class A-2 Note

  	
  A-2-1

  
	
  Exhibit A-3
  -

  	
  Form of
  Class A-3 Note

  	
  A-3-1

  
	
  Exhibit A-4
  -

  	
  Form of
  Class A-4 Note

  	
  A-4-1

  
	
  Exhibit B
  -

  	
  Form of
  Assignment

  	
  B-1

  
	
  Exhibit C
  -

  	
  Form of
  Note Depository Agreement

  	
  C-1

  

 

v

 

INDENTURE

 

Indenture,
dated as of July 1, 2009 (this “Indenture”), between Harley-Davidson
Motorcycle Trust 2009-2, a Delaware statutory trust (the “Issuer”) and The Bank
of New York Mellon Trust Company, N.A., 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 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, debt 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, 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.

 

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

 

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

 

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

 

2

 

“Class A-2
Final Distribution Date” 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 A-2.

 

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

 

“Class A-3
Final Distribution Date” has the meaning set forth in the Sale and
Servicing Agreement.

 

“Class A-3
Notes” means the Class A-3 Notes , substantially in the form of Exhibit A-3.

 

“Class A-3
Rate” has the meaning set forth in the Sale and Servicing Agreement.

 

“Class A-4 Final Distribution Date” has the meaning set forth
in the Sale and Servicing Agreement.

 

“Class A-4
Notes” means the Class A-4 Notes, substantially in the form of Exhibit A-4.

 

“Class A-4
Rate” has the meaning set forth in the Sale and Servicing Agreement.

 

“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.

 

“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 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 Indenture 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.

 

3

 

“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.

 

“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.

 

4

 

“Indenture Securities” means the Notes.

 

“Indenture Security Holder” means a Noteholder.

 

“Indenture
Trustee” means The Bank of New York Mellon Trust Company,
N.A., 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 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
Rate” means the Class A-1 Rate, the Class A-2 Rate, the Class A-3
Rate and/or the Class A-4 Rate, as applicable.

 

“Issuer” means
Harley-Davidson Motorcycle Trust 2009-2 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, a Class A-3 Note or a Class A-4 Note.

 

“Note
Depository Agreement” means one or more agreements dated as of the
Closing Date, between the Issuer and DTC, as the initial Clearing Agency,
relating to the Notes, substantially in the form of Exhibit C
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 

 

5

 

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:

 

(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.

 

6

 

“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.

 

“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
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.

 

“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.

 

7

 

“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 Indenture 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
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.

 

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:

 

“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;

 

8

 

(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.

 

ARTICLE
TWO

 

THE
NOTES

 

Section 2.01.        Form.  The 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 the Notes for original issue in the Classes and aggregate principal
amounts as set forth below:

 

	
  Class

  	
   

  	
  Aggregate
  Principal Amount

  
	
  Class A-1

  	
   

  	
  $

  	
  150,000,000

  
	
  Class A-2

  	
   

  	
  $

  	
  210,000,000

  
	
  Class A-3

  	
   

  	
  $

  	
  260,000,000

  
	
  Class A-4

  	
   

  	
  $

  	
  80,000,000

  

 

9

 

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 $100,000 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 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.

 

10

 

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 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 or a beneficial interest in a Note shall be
required to represent, or in the case of a Book Entry Note, 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 or a beneficial interest in 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
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
Indenture 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 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 

 

11

 

Participants owning or representing, respectively, such required
percentage of the beneficial interest in the Notes and has delivered such
instructions to the Indenture Trustee; and

 

(iv)          without the consent of the
Issuer and the Indenture 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 Indenture
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 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 or 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.

 

12

 

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 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 

 

13

 

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;

 

(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 applicable Note Depository Agreement, and (B) Indenture
Trustee or the Administrator is unable to locate a qualified successor, (ii) the
Administrator or the Owner 

 

14

 

Trustee, as applicable, notifies
the Clearing Agency of its intent to terminate the book-entry system through
the Clearing Agency and requests a withdrawal of the Book-Entry Notes held by the
Clearing Agency, and after receipt by the Clearing Agency Participants of an
important notice issued by the Clearing Agency notifying the Clearing Agency
Participants of such withdrawal request, the Clearing Agency Participants
holding beneficial interests in the Book-Entry Notes agree to initiate such
termination, or (iii) after the occurrence of an Event of Default, the
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.

 

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 for all federal, state, local, and foreign income and franchise
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, (iii) for the benefit of the Class A-3
Notes, to the Class A-3 Noteholders, and (iv) for the benefit of the Class A-4
Notes, to the Class A-4 Noteholders. 
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.

 

15

 

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, 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 or the Note
Distribution Account pursuant to Section 8.02(b) and 8.03 shall be
made on behalf of the Issuer by the Indenture Trustee or by another Paying
Agent, and no amounts so withdrawn from such accounts 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 under the Notes, 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.

 

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 

 

16

 

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 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;

 

17

 

(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 financing statements on Form UCC1.  All financing statements filed or to be filed
against the Issuer in favor of the Indenture Trustee in connection herewith
describing the Collateral shall contain a statement to the following
effect:  “A purchase of or security
interest in any collateral described in this financing statement, except as
permitted in the Indenture, will violate the rights of the Secured Party.”  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; provided,
however, that the Indenture Trustee
shall have no obligation to monitor or file any financing statements,
continuation statements, financing statement amendments or any other
instrument.

 

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 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.

 

18

 

(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)          except as may be expressly permitted
hereby, (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 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 March 31 of each year commencing March 31,
2010, 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 

 

19

 

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 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 

 

20

 

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;

 

(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 

 

21

 

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 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.

 

22

 

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.

 

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;

 

23

 

(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;

 

(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;

 

24

 

(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 Issuer by the Indenture Trustee or by the
Holders of at least 25% of the Outstanding Amount of the 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 Required Holders may declare the
principal 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.

 

25

 

(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.

 

(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 

 

26

 

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 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.

 

(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 

 

27

 

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 or (C) there has been an Event of Default described in Section 5.01(i) or
(ii) and the Indenture Trustee determines that the 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.

 

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) 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 

 

28

 

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;

 

(ii)                                  the Holders of
not less than 25% of the Outstanding Amount of the 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 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 this
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, 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 

 

29

 

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. 
Prior to the time a judgment or decree for payment of money due has been
obtained as described in Section 5.03, the Required Holders may waive any
past Default or Event of Default and its consequences, except a Default (i) in
payment of principal or interest on any of the Notes or (ii) in respect of
a covenant or provision hereof that cannot be modified or amended without the
consent of all Noteholders.  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 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 

 

30

 

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 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
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 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 or
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 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.

 

31

 

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.

 

(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 

 

32

 

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.

 

(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 

 

33

 

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.

 

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

 

34

 

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 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.

 

35

 

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 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 

 

36

 

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 Indenture 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 Indenture 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 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.  The
Indenture Trustee or its parent shall have a long term unsecured debt rating of
at least Baa3 by Moody’s and shall have a combined capital and surplus of at
least $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.

 

37

 

(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 the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes, the Issuer shall appoint a successor Indenture Trustee for one or more
Classes of Notes so that there will be separate Indenture Trustees for the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes.  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.

 

(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.

 

Section 6.14.                         Representations and Warranties of Indenture Trustee.  The Indenture Trustee hereby represents and warrants to the Issuer as
follows:

 

(a)                                  Organization. It has been
duly organized and is validly existing as a national banking association
organized under the laws of the United States and has the power to conduct its
business and affairs as a trustee.

 

38

 

(b)                                 Authorization;
Binding Obligations. It has the corporate power and authority to
perform the duties and obligations of Trustee under this Indenture. It has
taken all necessary corporate action to authorize the execution, delivery and
performance of each Transaction Document to which it is a party, and all of the
documents required to be executed by it pursuant hereto. Upon execution and
delivery by the Issuer, this Indenture will constitute the legal, valid and
binding obligation of it enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, insolvency, fraudulent
conveyance, moratorium, and similar laws affecting the rights of creditors and
subject to equitable principles (whether enforcement is sought in a legal or
equitable proceeding).

 

(c)                                  No
Conflict. Neither the execution, delivery and performance of
any Transaction Document to which it is a party, nor the consummation of the
transactions contemplated thereby, (i) is prohibited by, or requires it to
obtain any consent, authorization, approval or registration under, any law,
statute, rule, regulation, judgment, order, writ, injunction or decree that is
binding upon it or any of its properties or assets or (ii) will violate
any provision of, result in any default or acceleration of any obligations
under, result in the creation or imposition of any lien pursuant to, or require
any consent under, any agreement to which it is a party or by which it or any
of its property is bound.

 

(d)                                 No
Proceedings. There are no proceedings pending, or to the best
of its knowledge, threatened against it before any federal, state, provincial
or other governmental agency, authority, administrator or regulatory body,
arbitrator, court or other tribunal, foreign or domestic, that could reasonably
be expected to have a material adverse effect on the Collateral or the
Noteholders or any action taken or to be taken by it under any Transaction
Document to which it is a party.

 

(e)                                  Eligible
Trustee. It is an eligible trustee under the TIA as of the Closing Date.

 

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.

 

39

 

(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).

 

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; and

 

(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, 2010, 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 

 

40

 

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 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,
as applicable.  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 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 

 

41

 

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

 

42

 

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 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;
and

 

(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.

 

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.

 

43

 

Section 9.02.                         Supplemental Indentures With
Consent of Noteholders.

 

(a)                                  The Issuer and
the Indenture Trustee, when authorized by an Issuer Order, may, with prior
notice to each Rating Agency and 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;

 

(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.

 

(b)                                 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.

 

44

 

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 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 Servicer 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.  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 

 

45

 

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 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.

 

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.

 

46

 

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 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 as to the
fair value (within 90 days of such deposit) 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

 

47

 

this Indenture, the Issuer shall also furnish to the Indenture Trustee
an Officer’s 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 December 31, 2009, 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.

 

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.

 

48

 

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
the date transmitted by legible telecopier or electronic mail 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 its 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 

 

49

 

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 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, 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 

 

50

 

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 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 

 

51

 

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 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]

 

52

 

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
  2009-2

  
	
   

  	
   

  
	
   

  	
  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/ J. Christopher Murphy

  
	
   

  	
  Printed
  Name: J. Christopher Murphy

  
	
   

  	
  Title:
  Financial Services Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  BANK OF NEW YORK MELLON TRUST COMPANY, N.A., not in its individual capacity
  but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Hill

  
	
   

  	
  Printed
  Name: David H. Hill

  
	
   

  	
  Title: Assistant Vice President

  
				

 

 

	
  STATE
  OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS

  
	
  COUNTY OF COOK

  	
  )

  	
   

  

 

On July 13, 2009

 

before me, Michelle Kallick

 

personally appeared David H. Hill,

 

	
   

  	
   

  	
  personally known to me, or

  
	
   

  	
   

  	
   

  
	
  XXX

  	
   

  	
  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

  	
  /s/
  Michelle Kallick

  	
   

  
	
   

  	
   

  
	
  Notary
  Public, State of Illinois

  	
   

  
	
  My
  Commission Expires 10/13/09

  	
  [Seal]

  
			

 

 

	
  STATE OF DELAWARE

  	
  )

  	
   

  
	
   

  	
  ) SS

  	
   

  
	
  COUNTY OF NEW CASTLE

  	
  )

  	
   

  

 

On July 14, 2009

 

before me, Erik E. Overcash

 

personally appeared J. Christopher Murphy,

 

	
  XXX

  	
   

  	
  personally known to me, or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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

  	
  /s/
  Erik E. Overcash

  	
   

  
	
  Notary
  Public, State of Delaware

  	
   

  
	
  My
  Comm. Expires Aug. 14, 2009

  	
  [Seal]

  

 

 

EXHIBIT A-1

 

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 2009-2

 

[        ]% MOTORCYCLE CONTRACT
BACKED NOTES, CLASS A-1

 

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.

  

 

Harley-Davidson Motorcycle Trust 2009-2, 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
[                            ]
(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 during the related Interest Period and will be computed for
the actual number of days elapsed in the related Interest Period based on a
360-day year.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

 

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. 

 

A-1-1

 

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.

 

A-1-2

 

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 2009-2

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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:

  	
   

  
						

 

A-1-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

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

  
	
   

  	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

A-1-4

 

[REVERSE OF CLASS A-1
NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [        ]% Motorcycle Contract Backed
Notes, Class A-1 (the “Class A-1 Notes”), all issued under an
Indenture, dated as of July 1, 2009 (the “Indenture”), between the Issuer
and The Bank of New York Mellon Trust Company, N.A., 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.

 

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 Servicer, on any
Distribution Date on or after the date on which the Pool Balance is less than
10% of the Pool Balance as of the Cutoff Date.

 

A-1-5

 

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-1
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.  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.

 

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 

 

A-1-6

 

under the Indenture at any time by the Issuer and the 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.

 

A-1-7

 

EXHIBIT A-2

 

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 2009-2

 

[        ]% MOTORCYCLE CONTRACT
BACKED NOTES,

CLASS A-2

 

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP
  No.

  

 

Harley-Davidson
Motorcycle Trust 2009-2, 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 [                      ]
(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 during the related Interest Period and
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.

 

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.  

 

A-2-1

 

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.

 

A-2-2

 

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 2009-2

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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:

  	
   

  
						

 

A-2-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

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

  
	
   

  	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

A-2-4

 

[REVERSE OF CLASS A-2 NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [        ]% Motorcycle Contract
Backed Notes, Class A-2 (the “Class A-2 Notes”), all issued under an
Indenture, dated as of July 1, 2009 (the “Indenture”), between the Issuer
and The Bank of New York Mellon Trust Company, N.A., 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.

 

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 Servicer, on any
Distribution Date on or after the date on which the Pool Balance is less than
10% of the Pool Balance as of the Cutoff Date.

 

A-2-5

 

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.  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.

 

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

 

A-2-6

 

Notes
under the Indenture at any time by the Issuer and the consent of the 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.

 

A-2-7

 

EXHIBIT A-3

 

FORM OF CLASS A-3
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 2009-2

 

[        ]% MOTORCYCLE CONTRACT
BACKED NOTES,

CLASS A-3

 

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP
  No.

  

 

Harley-Davidson
Motorcycle Trust 2009-2, 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 [                      ]
(the “Class A-3 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-3
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 during the related Interest Period and
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.

 

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.  

 

A-3-1

 

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.

 

A-3-2

 

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 2009-2

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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:

  	
   

  
						

 

A-3-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

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

  
	
   

  	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

A-3-4

 

[REVERSE OF CLASS A-3 NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [        ]% Motorcycle Contract
Backed Notes, Class A-3 (the “Class A-3 Notes”), all issued under an
Indenture, dated as of July 1, 2009 (the “Indenture”), between the Issuer
and The Bank of New York Mellon Trust Company, N.A., 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-3 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-3 Notes will be payable on the earlier of the Class A-3
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-3 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-3
Notes shall be made pro rata to the Class A-3 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-3
Rate to the extent lawful.

 

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 Servicer, on any
Distribution Date on or after the date on which the Pool Balance is less than
10% of the Pool Balance as of the Cutoff Date.

 

A-3-5

 

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-3
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.  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.

 

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

 

A-3-6

 

Notes
under the Indenture at any time by the Issuer and the consent of the 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.

 

A-3-7

 

EXHIBIT A-4

 

FORM OF CLASS A-4
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 2009-2

 

[        ]% MOTORCYCLE CONTRACT
BACKED NOTES,

CLASS A-4

 

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.

  

 

Harley-Davidson
Motorcycle Trust 2009-2, 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 [                      ]
(the “Class A-4 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-4
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 during the related Interest Period and
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.

 

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.  

 

A-4-1

 

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.

 

A-4-2

 

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
  2009-2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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:

  	
   

  

 

A-4-3

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	
   

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

  
	
   

  	
  not
  in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

A-4-4

 

[REVERSE OF CLASS A-4 NOTE]

 

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [        ]% Motorcycle Contract
Backed Notes, Class A-4 (the “Class A-4 Notes”), all issued under an
Indenture, dated as of July 1, 2009 (the “Indenture”), between the Issuer
and The Bank of New York Mellon Trust Company, N.A., 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-4 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-4 Notes will be payable on the earlier of the Class A-4
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-4 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-4
Notes shall be made pro rata to the Class A-4 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-4
Rate to the extent lawful.

 

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 Servicer, on any
Distribution Date on or after the date on which the Pool Balance is less than
10% of the Pool Balance as of the Cutoff Date.

 

A-4-5

 

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-4
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.  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.

 

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

 

A-4-6

 

Notes
under the Indenture at any time by the Issuer and the consent of the 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.

 

A-4-7

 

EXHIBIT C

 

FORM OF NOTE DEPOSITORY
AGREEMENT

 

C-1

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