Document:

Exhibit 10.3

 

 

 

ADMINISTRATION AGREEMENT

 

among

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2006-3,

 

as Issuer,

 

HARLEY-DAVIDSON CREDIT CORP.,

 

as Administrator,

 

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,

 

as Trust Depositor,

 

and

 

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

 

as Indenture Trustee

 

 

Dated as of August 1, 2006

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1. DUTIES OF THE
  ADMINISTRATOR

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 2. RECORDS

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 3. COMPENSATION

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 4. ADDITIONAL
  INFORMATION TO BE FURNISHED TO THE ISSUER

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 5. INDEPENDENCE OF
  THE ADMINISTRATOR

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 6. NO JOINT
  VENTURE

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 7. OTHER
  ACTIVITIES OF ADMINISTRATOR

  	
  9

  
	
   

  	
   

  	
   

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

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 9. ACTION UPON
  TERMINATION, RESIGNATION OR REMOVAL

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  NOTICES

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  AMENDMENTS

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  SUCCESSORS AND ASSIGNS

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  GOVERNING LAW

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
  HEADINGS

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
  COUNTERPARTS

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
  SEVERABILITY

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
  NOT APPLICABLE TO
  HARLEY-DAVIDSON CREDIT IN OTHER CAPACITIES

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
  LIMITATION OF LIABILITY OF
  OWNER TRUSTEE AND INDENTURE TRUSTEE

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 19.

  	
  THIRD-PARTY BENEFICIARY

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 20.

  	
  SURVIVABILITY

  	
  12

  

 

 

This
Administration Agreement, dated as of August 1, 2006, among Harley-Davidson
Motorcycle Trust 2006-3 (the “Issuer”),
Harley-Davidson Credit Corp. (together with its successors and assigns “Harley-Davidson Credit”) in its capacity
as administrator, the “Administrator”),
Harley-Davidson Customer Funding Corp. (the “Trust
Depositor”) and The Bank of New York Trust Company, N.A., not in its
individual capacity but solely as Indenture Trustee (together with its
successors and assigns, the “Indenture
Trustee”).

 

W I T N E S S E T H:

 

WHEREAS,
the Issuer is issuing 5.37% Harley-Davidson Motorcycle Contract Backed Notes,
Class A-1 Notes, 5.42% Harley-Davidson Motorcycle Contract Backed Notes, Class
A-2 Notes, 5.24% Harley-Davidson Motorcycle Contract Backed Notes, Class A-3
Notes, 5.22% Harley-Davidson Motorcycle Contract Backed Notes, Class A-4 Notes
and 5.43% Harley-Davidson Motorcycle Contract Backed Notes, Class B Notes
(collectively, the “Notes”)
pursuant to the Indenture, dated as of the date hereof (the “Indenture”), between the Issuer and the
Indenture Trustee (capitalized terms used herein that are not otherwise defined
shall have the meanings ascribed thereto in the Indenture);

 

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

 

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

 

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

 

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

 

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

 

Section 1.              Duties
of the Administrator.

 

(a)           Duties with respect to the Indenture.

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Q)          the monitoring of the Issuer’s
obligations as to the satisfaction and discharge of the Indenture and the
preparation of an Officer’s Certificate and the obtaining of the Opinion of
Counsel and the Independent Certificate relating thereto (Section 4.01);

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(FF)         the appointment of a successor
Indenture Trustee.

 

(ii)           The Administrator will:

 

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

 

5

 

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

 

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

 

(b)           Additional
Duties.

 

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

 

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

 

(iii)          Notwithstanding anything in this
Agreement or the Transaction Documents to the contrary, the Administrator shall
be responsible for performance of the duties of the Owner Trustee set forth in
Section 5.03(a), (b), (c) and (d), the penultimate sentence of Section 5.03 and
Section 5.04(a) of the Trust Agreement with respect to, among other things,
accounting and 

 

6

 

reports to the Owner; provided, however, that the Owner Trustee
shall retain responsibility for the distribution of information forms necessary
to enable the Owner to prepare its federal and state income tax returns.

 

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

 

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

 

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

 

(c)           Non-Ministerial
Matters.

 

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

 

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

 

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

 

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

 

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

 

(E)           the removal of the Indenture Trustee.

 

(ii)           Notwithstanding anything to the
contrary in this Agreement, the Administrator shall not be obligated to, and
shall not, (A) make any payments to the Noteholders under the 

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 9.              Action
upon Termination, Resignation or Removal. Promptly upon the effective date of
termination of this Agreement pursuant to Section 8 or the resignation or
removal of the Administrator pursuant to Section 8(a), (b) or (c) respectively,
the Administrator shall be entitled to be paid all fees and reimbursable
expenses accruing to it to the date of such termination, resignation or removal.
The Administrator shall forthwith upon such termination pursuant to Section 8
deliver to the 

 

9

 

Issuer all property and
documents of or relating to the Collateral then in the custody of the
Administrator. In the event of the resignation or removal of the Administrator
pursuant to Section (a), (b) or (c), respectively, the Administrator shall
cooperate with the Issuer and take all reasonable steps requested to assist the
Issuer in making an orderly transfer of the duties of the Administrator.

 

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

 

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

 

Section 11.            Amendments.
This Agreement may be
amended from time to time by a written amendment duly executed and delivered by
the parties hereto, with the written consent of the Owner Trustee but without
the consent of the Noteholders, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Noteholders; provided that such
amendment will not, in the Opinion of Counsel satisfactory to the Indenture
Trustee, materially and adversely affect the interest of any Noteholder. This
Agreement may also be amended by the parties hereto with the written consent of
the Owner Trustee and the Required Holders for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of Noteholders; provided, however, that no such amendment
may (i) increase or reduce in any manner the amount of, or accelerate or delay
the timing of, collections of payments on the Contracts or distributions that
are required to be made for the benefit of the Noteholders or (ii) reduce the
aforesaid percentage of the holders of Notes which are required to consent to
any such amendment, without the consent of the holders of all outstanding Notes.
Notwithstanding the foregoing, the Administrator may not amend this Agreement
without the permission of the Trust Depositor, which permission shall not be
unreasonably withheld.

 

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

 

10

 

the Administrator is bound
hereunder. Subject to the foregoing, this Agreement shall bind any successors
or assigns of the parties hereto.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

[signature page follows]

 

12

 

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

 

	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE
  TRUST

  
	
   

  	
  2006-3

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Wilmington Trust Company,
  not in its

  
	
   

  	
   

  	
  individual capacity but
  solely as Owner

  
	
   

  	
   

  	
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Perkins

  
	
   

  	
   

  	
  Printed
  Name:

  	
  Robert J. Perkins

  
	
   

  	
   

  	
  Title:

  	
  Sr. Financial Services
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON CUSTOMER
  FUNDING

  
	
   

  	
  CORP., as Trust Depositor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Perry A. Glassgow 

  
	
   

  	
   

  	
  Printed
  Name:   Perry A. Glassgow

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST

  
	
   

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

  
	
   

  	
  but solely as Indenture
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Cynthia L. Davis 

  
	
   

  	
   

  	
  Printed
  Name:  Cynthia L. Davis

  
	
   

  	
   

  	
  Title:
   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON CREDIT
  CORP.,

  
	
   

  	
  as Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Perry A. Glassgow 

  
	
   

  	
   

  	
  Printed
  Name: Perry A. Glassgow

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  
					

 

Signature Page to
Administration Agreement

 

 

LIMITED POWER OF ATTORNEY

 

	
  State of Illinois )

  	
   

  	
   

  
	
   

  	
  )

  	
  SS.

  
	
  County of Cook )

  	
   

  	
   

  

 

KNOW
ALL PERSONS BY THESE PRESENTS, that Wilmington Trust Company, a Delaware
banking corporation (the “Owner Trustee”),
whose principal executive office is located at Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware Attention:  Trust Administration, by and through its duly
elected and authorized officer, Robert J. Perkins,  a Senior Financial Services Officer, on
behalf of itself and of Harley-Davidson Motorcycle Trust 2006-3 (the “Trust”) as Issuer under the
Administration Agreement, dated as of August 1, 2006 (the “Administration Agreement”), among the
Trust, Harley-Davidson Customer Funding Corp., The Bank of New York Trust
Company, N.A., as Indenture Trustee, and Harley-Davidson Credit Corp., as
Administrator, does hereby nominate, constitute and appoint Harley-Davidson
Credit Corp., a Nevada corporation, each of its officers from time to time and
each of its employees authorized by it from time to time to act hereunder,
jointly and each of them severally, together or acting alone, its true and
lawful attorney-in-fact, for the Owner Trustee and the Issuer in their name,
place and stead, in the sole discretion of such attorney-in-fact, to perform
such calculations and prepare or cause the preparation by other appropriate
persons of, and to execute on behalf of the Issuer or the Owner Trustee, all
such documents, reports, filings, instruments, certificates and opinions that
the Issuer or the Owner Trustee is required to prepare, file or deliver
pursuant to the Administration Agreement, and to take any and all other action,
as such attorney-in-fact may deem necessary or desirable in accordance with the
directions of the Owner Trustee and in connection with its duties as
Administrator or successor Administrator under the Administration Agreement. Capitalized
terms used herein that are not otherwise defined shall have the meanings
ascribed thereto in the Administration Agreement.

 

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

 

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

 

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

 

 

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

 

Executed
as of this 25th day of August, 2006.

 

 

	
   

  	
   

  	
  Wilmington Trust Company,
  not in its individual

  
	
   

  	
   

  	
  capacity but solely as
  Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert J. Perkins

  	
   

  
	
   

  	
   

  	
  Printed
  Name:

  	
  Robert J. Perkins

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Sr. Financial Services
  Officer

  	
   

  
							

 

 

CERTIFICATE OF ACKNOWLEDGMENT OF

NOTARY PUBLIC

 

	
  State of Delaware

  	
  )

  
	
   

  	
  ) SS.

  
	
  County of New Castle

  	
  )

  

 

	
   

  	
  On August 22, 2006 before
  me,

  	
  Amanda Gamble, Sales
  Associate

  	
   

  
	
   

  	
  [Insert name and title of
  notary]

  
	
   

  	
  personally appeared

  	
  Robert J. Perkins

  	
  .

  
	
   

  	
   

  
	
   

  	
   

  
	
  x

  	
  personally known to me, or

  
	
   

  	
   

  
	
  o

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

  
						

 

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

 

	
   

  	
   

  	
  WITNESS my hand and
  official seal.

  
	
   

  	
   

  	
   

  
	
   

  	
  Amanda
  E. Gamble

  	
   

  
	
  Signature:

  	
  Amanda
  E. Burger

  	
   

  
	
   

  	
  [SEAL]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Amanda E. Gamble

  	
   

  
	
   

  	
  Amanda E. Burger

  	
   

  
	
   

  	
  Notary Public - State of Delaware

  	
   

  
	
   

  	
  My Comm. Expires March 7, 2007Exhibit 10.4

 

EXECUTION COPY

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2006-3

 

$100,000,000 5.37% MOTORCYCLE CONTRACT BACKED NOTES, CLASS A-1

$228,000,000 5.42% MOTORCYCLE CONTRACT BACKED NOTES, CLASS A-2

$264,000,000 5.24% MOTORCYCLE CONTRACT BACKED NOTES, CLASS A-3

$160,000,000 5.22% MOTORCYCLE CONTRACT BACKED NOTES, CLASS A-4

$48,000,000 5.43% MOTORCYCLE CONTRACT BACKED NOTES, CLASS B

 

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.

Trust Depositor

 

HARLEY-DAVIDSON CREDIT CORP. 

Seller and Servicer

 

UNDERWRITING AGREEMENT

 

August 17, 2006

 

Citigroup
Global Markets Inc.

Wachovia Capital Markets, LLC

ABN AMRO Incorporated

BNP Paribas Securities Corp.

J.P. Morgan Securities Inc.

c/o Citigroup Global Markets Inc.

390 Greenwich Street

New York, New York 10013

 

Ladies and
Gentlemen:

 

Harley-Davidson
Customer Funding Corp., a Nevada corporation (the “Trust Depositor”) and a
wholly-owned subsidiary of Harley-Davidson Credit Corp., a Nevada corporation (“Harley-Davidson”),
proposes to cause Harley-Davidson Motorcycle Trust 2006-3 (the “Trust”) to
issue and sell to you (the “Underwriters”) $100,000,000 principal amount of its
5.37% Motorcycle Contract Backed Notes, Class A-1 (the “Class A-1 Notes”),
$228,000,000 principal amount of its 5.42% Motorcycle Contract Backed Notes,
Class A-2 (the “Class A-2 Notes”), $264,000,000 principal amount of its 5.24%
Motorcycle Contract Backed Notes, Class A-3 (the “Class A-3 Notes”),
$160,000,000 principal amount of its 5.22% Motorcycle Contract Backed Notes,
Class A-4 (the “Class A-4 Notes” and, together with the Class A-1 Notes, the
Class A-2 Notes and the Class A-3 Notes, the “Class A Notes”) and $48,000,000
principal amount of its 5.43% Motorcycle Contract Backed Notes, Class B (the “Class
B Notes” and, together with the Class A Notes, the “Notes”). The assets of the
Trust will include a pool of motorcycle conditional sales contracts (the “Initial
Contracts”) relating to motorcycles manufactured by one or more subsidiaries of
Harley-Davidson, Inc. (including Buell Motorcycle Company, LLC (“Buell”), a
wholly-owned subsidiary of Harley-Davidson, Inc.), and certain other motorcycle

 

 

manufacturers,
certain monies received thereon after August 14, 2006 (the “Initial Cutoff Date”),
all insurance proceeds and liquidation proceeds with respect thereto, security
interests in the motorcycles financed thereby, the related Initial Contracts
files, the Trust Accounts, proceeds of the foregoing, certain rights with
respect to funds on deposit from time to time in the Reserve Fund, the
Pre-Funding Account, the Interest Reserve Account and certain other property.
The Initial Contracts will be serviced for the Trust by Harley-Davidson. The
Notes will be issued pursuant to the Indenture to be dated as of August 1, 2006
(as amended and supplemented from time to time, the “Indenture”) between the
Trust and The Bank of New York Trust Company, N.A., as indenture trustee (the “Indenture
Trustee”). The Notes will be secured by the assets of the Trust pursuant to the
Indenture. The Notes are hereinafter referred to as the “Offered Securities”.

 

A certificate
(the “Certificate”) will be issued pursuant to a Trust Agreement dated as of
August 1, 2006 (as amended and supplemented from time to time, the “Trust
Agreement”), between the Trust Depositor and Wilmington Trust Company, as owner
trustee (the “Owner Trustee”). The Certificate will be retained by the Trust
Depositor and will not be offered pursuant to the Preliminary Prospectus (as
defined herein) or the Prospectus (as defined herein).

 

The Trust will
acquire the Initial Contracts from the Trust Depositor pursuant to a Sale and
Servicing Agreement to be dated as of August 1, 2006 (as amended and
supplemented from time to time, the “Sale and Servicing Agreement”), among the
Trust, the Trust Depositor, Harley-Davidson, as servicer, and The Bank of New
York Trust Company, N.A., as Indenture Trustee. Harley-Davidson will also agree
to perform certain administrative functions on behalf of the Trust pursuant to
an Administration Agreement to be dated as of August 1, 2006 (as amended and
supplemented from time to time, the “Administration Agreement”) among Harley-Davidson,
as administrator, the Trust and the Indenture Trustee. The Trust Depositor will
acquire the Initial Contracts from Harley-Davidson on the Closing Date (as
defined herein) pursuant to a Transfer and Sale Agreement to be dated as of
August 1, 2006 (as amended and supplemented from time to time, the “Transfer
and Sale Agreement”) among the Trust Depositor, as purchaser, and
Harley-Davidson, as seller. All of the assets conveyed to the Trust pursuant to
the Sale and Servicing Agreement are referred to herein as the “Trust Property”.
Capitalized terms that are used and not otherwise defined herein shall have the
respective meanings assigned thereto in the Sale and Servicing Agreement.

 

On the Closing
Date, $254,586,195.07 will be deposited in the Pre-Funding Account. It is
intended that additional motorcycle conditional sales contracts, including all
rights to receive payments thereon after their related Subsequent Cutoff Dates
and security interests in the Harley-Davidson, Inc., Buell and certain other
manufacturers’ motorcycles financed thereby (such contracts, together with all
such rights and interests, the “Subsequent Contracts” and, together with the
Initial Contracts, the “Contracts”), will be purchased by the Trust Depositor
from Harley-Davidson pursuant to one or more related Subsequent Purchase
Agreements and further transferred and assigned by the Trust Depositor to the
Trust and pledged by the Trust to the Indenture Trustee pursuant to one or more
related Subsequent Transfer Agreements from funds on deposit in the Pre-Funding
Account from time to time on or before the date which is 90 days from and
including the Closing Date.

 

2

 

In connection
with the sale of the Offered Securities, the Trust Depositor and Harley-Davidson
will prepare a Prospectus Supplement to be dated August 17, 2006 which will
supplement the Base Prospectus dated as of August 16, 2006. The Prospectus sets
forth certain information concerning the Trust Depositor, Harley-Davidson, the
Trust and the Offered Securities. The Trust Depositor and Harley-Davidson
hereby confirm that they have authorized the use of the Prospectus, and any
amendment or supplement thereto, in connection with the offer and sale of the
Offered Securities by the Underwriters. Unless stated to the contrary, all
references herein to the Prospectus are to the Prospectus as defined herein and
are not meant to include any amendment or supplement thereto.

 

At or prior to
the time when sales to purchasers of the Offered Securities were first made to
investors by the Underwriters, which was approximately 2:00 p.m. on August 17,
2006 (the “Time of Sale”), the Trust Depositor and Harley-Davidson had prepared
the following information (collectively, the “Time of Sale Information”): the
preliminary prospectus supplement dated August 16, 2006 (the “Preliminary
Prospectus Supplement”) to the base prospectus dated August 16, 2006 (the “Preliminary
Base Prospectus”) (together, along with information referred to under the
caption “Appendix A—Static Pool Information” therein regardless of whether it
is deemed a part of the Registration Statement or Prospectus, the “Preliminary
Prospectus”). If, subsequent to the Time of Sale and prior to the Closing Date,
such information included an untrue statement of material fact or omitted to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, and as a
result investors in the Offered Securities may terminate their prior “Contracts
of Sale” (within the meaning of Rule 159 under the Securities Act of 1933, as
amended (the “Act”)) for any Offered Securities and the Underwriters enter into
new Contracts of Sale with investors in the Offered Securities, then “Time of
Sale Information” will refer to the information conveyed to investors at the
time of entry into the first such new Contract of Sale, in an amended Preliminary
Prospectus approved by the Trust Depositor, Harley-Davidson and the
Underwriters that corrects such material misstatements or omissions (a “Corrected
Prospectus”) and “Time of Sale” will refer to the time and date on which such
new Contracts of Sale were entered into.

 

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

 

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

 

The Trust
Depositor proposes to file with the Commission pursuant to Rule 424(b) of the
rules and regulations of the Commission under the Act (the “Rules and
Regulations”) a prospectus supplement dated August 17, 2006 (together with
information referred to under the caption “Appendix A – Static Pool Information”

 

3

 

therein
regardless of whether it is deemed a part of the Registration Statement or
Prospectus, the “Prospectus Supplement”) to the prospectus dated August 16,
2006 (the “Base Prospectus”), relating to the Offered Securities and the method
of distribution thereof. Such registration statement, including exhibits
thereto, and such prospectus, as amended or supplemented to the date hereof,
and as further supplemented by the Prospectus Supplement, are hereinafter
referred to as the “Registration Statement” and the “Prospectus,” respectively.
Any reference herein to the terms “amend,” “amendment” or “supplement” with
respect to the Registration Statement, the Base Prospectus or the Prospectus
Supplement shall include, without limitation, any document filed under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Base
Prospectus and the Prospectus Supplement, as the case may be, deemed to be
incorporated therein pursuant to the Act.

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

The Indenture
has been qualified under the Trust Indenture Act.

 

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

 

(d)           [Reserved].

 

(e)           [Reserved].

 

5

 

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

 

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

 

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

 

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

 

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

 

6

 

(k)           All
consents, approvals, authorizations, orders, filings, registrations or qualifications
of or with any court or any other governmental agency, board, commission,
authority, official or body required in connection with the execution and
delivery by the Trust Depositor and Harley-Davidson of this Agreement, the
Offered Securities, the Sale and Servicing Agreement, the Transfer and Sale
Agreement, the Trust Agreement, the Administration Agreement, the Indenture, or
the Lockbox Agreement, each Subsequent Purchase Agreement or each Subsequent
Transfer Agreement, or to the consummation of the transactions contemplated
hereunder and thereunder, or to the fulfillment of the terms hereof and
thereof, have been or will have been obtained on or before the Closing Date
(and on or before each Subsequent Transfer Date in the case of Subsequent
Contracts being transferred to the Trust).

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

4.             Delivery
and Payment. Delivery of and payment for the Offered Securities shall be
made at the office of Winston & Strawn LLP, 35 Wacker Drive, Chicago, Illinois, at 10:00 A.M.,
Chicago time, on August 25, 2006, or such later date (not later than September
8, 2006) as the Underwriters shall designate, which date and time may be
postponed by agreement among the Underwriters and the Trust Depositor (such
date and time of delivery and payment for the Offered Securities being herein
called the “Closing Date”).

 

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

 

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

 

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

 

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

 

(b)           During
the period when a prospectus is required by the Act or the Exchange Act to be
delivered in connection with sales of the Offered Securities (the “Prospectus
Delivery Period”), Harley-Davidson will notify you promptly, and confirm the
notice in writing, of (i) the effectiveness of any post-effective amendment to
the Registration Statement or the filing of any supplement or amendment to the
Prospectus, (ii) the receipt of any comments from the Commission, (iii) any
request by the Commission for any amendment to the Registration Statement or
any amendment or supplement to the Prospectus or any document incorporated by
reference therein or otherwise deemed to be a part thereof or for additional
information, (iv) the issuance by the Commission of any

 

9

 

stop order
suspending the effectiveness of the Registration Statement or of any order
preventing or suspending the use of any Preliminary Prospectus, or of the
suspension of the qualification of the Offered Securities for offering or sale
in any jurisdiction, or of the initiation or threatening of any proceedings for
any of such purposes and (v) the happening of any event which makes the
Registration Statement or the Prospectus contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein not misleading.
Harley-Davidson will make every reasonable effort to prevent the issuance of
any stop order and, if any stop order is issued, to obtain as soon as possible
the lifting thereof.

 

(c)           If
during the Prospectus Delivery Period any event shall occur or condition shall
exist as a result of which it is necessary to amend the Registration Statement
or amend or supplement the Prospectus in order that the Prospectus will not
include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or if it shall be necessary during
the Prospectus Delivery Period to amend the Registration Statement or amend or
supplement the Prospectus in order to comply with the requirements of the Act
or the Rules and Regulations, Harley-Davidson will promptly notify you and will
promptly prepare and file with the Commission, subject to the review and
approval provisions afforded to you described in Section 6(a), such amendment
or supplement as may be necessary to correct such statement or omission or to
make the Registration Statement, the Preliminary Prospectus or the Prospectus
comply with such requirements. Harley-Davidson will use its best efforts to
have such amendment or new registration statement declared effective as soon as
practicable, and Harley-Davidson will furnish to the Underwriters, without
charge, such number of copies of such amendment or supplement as the
Underwriters may reasonably request. Any such filing shall not operate as a
waiver or limitation of any right of any Underwriter hereunder.

 

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

 

(e)           Prior
to the availability of the Prospectus, Harley-Davidson will deliver to the
Underwriters, without charge, as many copies of the Preliminary Prospectus as
the Underwriters may reasonably request, and Harley-Davidson and the Trust
Depositor hereby consent to the use of such copies for purposes permitted by
the Act. Harley-Davidson will furnish to the Underwriters, without charge,
during

 

10

 

the Prospectus
Delivery Period, such number of copies of the Prospectus as the Underwriters
may reasonably request. The Prospectus and any amendments or supplements
thereto furnished to the Underwriters will be identical to any electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR, except
to the extent permitted by Regulation S-T under the Act. Harley-Davidson will
pay the expenses of printing or other production of all documents relating to
the offering.

 

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

 

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

 

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

 

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

 

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

 

(k)           To
the extent, if any, that the rating provided with respect to the Offered
Securities by Moody’s Investors Service, Inc. (“Moody’s”) or Standard &
Poor’s Ratings Services, a division of the McGraw-Hill Companies, (“S&P”
and together

 

11

 

with Moody’s,
the “Rating Agencies”) is conditional upon the furnishing of documents or the
taking of any actions by the Trust Depositor, the Trust Depositor shall furnish
such documents and take such actions.

 

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

 

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

 

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

 

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

 

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

 

7.             Payment
of Expenses, Etc. If the transactions contemplated by this Agreement are
consummated or this Agreement is terminated pursuant to Section 13, the Trust
Depositor will pay all expenses incident to the performance of its obligations
under this Agreement, including (i) the printing and filing of the Registration
Statement as originally filed and of each amendment thereto, (ii) the printing
of the Preliminary Prospectus, the Prospectus and each amendment thereto, (iii)
the fees of the Trustee and its counsel, (iv) the preparation, issuance and
delivery of the Offered Securities to the Underwriters, (v) the fees and
disbursements of the Trust Depositor’s accountants, (vi) the qualification of
the Offered Securities under securities laws in accordance with the provisions
of Section 6(g), including filing fees in connection therewith, (vii) the
printing and delivery to the Underwriters of copies of the Registration
Statement as originally filed and of each amendment thereto, (viii) the
printing and delivery to the Underwriters of copies of the Preliminary
Prospectus, the Prospectus and of each amendment thereto, (ix) the printing and
delivery to the Underwriters of copies of any blue sky or legal

 

12

 

investment
survey prepared in connection with the Offered Securities, (x) any fees charged
by Rating Agencies for the rating of the Offered Securities and (xi) the costs
and expenses (including any damages or other amounts payable in connection with
legal and contractual liability) associated with reforming any Contracts for
Sale of the Offered Securities made by the Underwriters caused by a Defective
Prospectus or a breach of any representation in Section 1(b) or Section 1(c).

 

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

 

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

 

(b)           Each
of the Preliminary Prospectus, the Prospectus and any supplements thereto shall
have been filed with the Commission in the manner and within the applicable
time period required under Rule 424(b) under the Act (without reference to Rule
424(b)(8)) in accordance with the Rules and Regulations and Section 6(a)
hereof, and prior to the Closing Date, no stop order suspending the
effectiveness of the Registration Statement shall have been issued and no
proceedings for that purpose shall have been instituted or, to the knowledge of
the Trust Depositor or you, shall be contemplated by the Commission or by any
authority administering any state securities or blue sky law; and any requests
for additional information from the Commission with respect to the Registration
Statement shall have been complied with.

 

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

 

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

 

13

 

to do business as a foreign corporation and is in good standing under
the laws of the State of Illinois;

 

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

 

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

 

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

 

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

 

(vi) none of the sale of the Contracts by Harley-Davidson to the Trust
Depositor pursuant to the Transfer and Sale Agreement, the sale of the Trust
Property to the Trust pursuant to the Sale and Servicing Agreement, the pledge
of the Trust Property to the Indenture Trustee, the issue and sale of the
Notes, the execution and delivery of this Agreement, the Sale and Servicing
Agreement, the Transfer and Sale Agreement, the Trust Agreement or the
Indenture, the consummation of any other of the transactions herein or therein
contemplated or the fulfillment of the terms hereof or thereof will conflict
with, result in a breach or violation of, or constitute a default under, any
law binding on the Trust

 

14

 

Depositor or
the charter or bylaws of the Trust Depositor or the terms of any indenture or
other agreement or instrument known to such counsel and to which the Trust
Depositor is a party or by which it is bound, or any judgment, order or decree
known to such counsel to be applicable to the Trust Depositor of any court,
regulatory body, administrative agency, governmental body or arbitrator having
jurisdiction over the Trust Depositor;

 

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

 

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

 

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

 

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

 

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

 

(xii)          the form UCC-1 financing
statements naming (A) Harley-Davidson as seller and the Trust Depositor as
purchaser, (B) the Trust Depositor as seller and the Trust as purchaser and (C)
the Trust, as debtor, and the Indenture Trustee, as secured party are in
appropriate form for filing with the Secretary of

 

15

 

State of the
State of Nevada; the interest of the Indenture Trustee in the Contracts and the
proceeds thereof and, to the extent that the filing of a financing statement is
effective to perfect an interest in the other Trust Property under Article 9 of
the Nevada Uniform Commercial Code, the other Trust Property will be perfected
upon the filing of such financing statements in such filing offices; and no
other interest of any other purchaser from or creditor of Harley-Davidson, the
Trust Depositor or the Trust is equal or prior to the interest of the Trustee
in the Contracts and such other Trust Property;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

by” an “investment
company” within the meaning of the Investment Company Act;

 

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

 

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

 

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

 

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

 

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

 

(xxv) such counsel has examined the Registration Statement, the Time of
Sale Information and the Prospectus and nothing has come to such counsel’s
attention that would lead such counsel to believe that (a) the Registration
Statement, at the time it initially became effective, at the time
Post-Effective

 

17

 

Amendment No.
2 thereto became effective and at each deemed effective date with respect to
the Underwriters pursuant to Rule 430B(f)(2) under the Act, contained any
untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, (b)
the Preliminary Prospectus, at the Time of Sale, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading or (c) the Prospectus,
at the date thereof and at the Closing Date, included or includes any untrue
statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading (in each of clauses
(a), (b) and (c), except for the financial statements and related schedules or
other financial or statistical data included or incorporated by reference
therein and that part of the Registration Statement which shall constitute the
Statement of Eligibility and Qualification (Form T-1) of the Indenture Trustee under
the Trust Indenture Act, as to which such counsel will not be called upon to
express a belief); and

 

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

 

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

 

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

 

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

 

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

 

(ii) none of the execution and delivery of this Agreement or the
Transfer and Sale Agreement, the consummation of any of the transactions
therein

 

18

 

contemplated
or the fulfillment of the terms thereof will conflict with, result in a breach
or violation of, or constitute a default under, any law or the charter or
bylaws of Harley-Davidson or the terms of any indenture or other agreement or
instrument known to such counsel and to which Harley-Davidson or the Trust
Depositor is a party or by which it is bound or any judgment, order or decree known
to such counsel to be applicable to Harley-Davidson or the Trust Depositor of
any court, regulatory body, administrative agency, governmental body, or
arbitrator having jurisdiction over Harley-Davidson or the Trust Depositor.

 

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

 

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

 

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

 

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

 

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

 

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

 

(v) no consent, approval, authorization or order of, or filing with,
any court or governmental agency or body is required for the consummation of
the transactions contemplated herein or in any Basic Document, except such as
may be required under the blue sky or securities laws of any jurisdiction in
connection with the purchase and sale of the Offered Securities by the
Underwriters, the

 

19

 

filing of the
UCC-1 financing statements relating to the conveyance of the Contracts by
Harley-Davidson to the Trust Depositor pursuant to the Transfer and Sale
Agreement and of the Contracts and other Trust Property to the Trust and of the
Contracts and other Trust Property to the Indenture Trustee for the benefit of
the Noteholders pursuant to the Sale and Servicing Agreement, the Trust
Agreement and the Indenture, and such other approvals (which shall be specified
in such opinion) as have been obtained and filings as have been made or are in
the process of being made; and

 

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

 

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

 

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

 

(f)            The
Underwriters shall have received an opinion addressed to them from Winston
& Strawn LLP, in its
capacity as federal tax counsel for the Trust Depositor, to the effect that the
statements in the Preliminary Prospectus and the Prospectus under the headings “Prospectus
Supplement Summary — Tax Status” and “Material Federal Income Tax Consequences”
accurately describe the material federal income tax consequences to holders of
the Offered Securities. Winston & Strawn LLP, in its capacity as special ERISA counsel to the Trust
Depositor, shall have delivered an opinion to the effect that the statements in
the Preliminary Prospectus and the Prospectus under the headings “Prospectus
Supplement Summary — ERISA Considerations” and “ERISA Considerations”, to the
extent that they constitute statements of matters of law or legal conclusions
with respect thereto, have been prepared or reviewed by such counsel and
accurately describe the material consequences to holders of the Offered
Securities under ERISA.

 

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

 

20

 

counsel such
documents as they request for the purpose of enabling them to pass upon such
matters.

 

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

 

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

 

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

 

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

 

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

 

(v) to the knowledge of such counsel, no litigation, investigation or
proceeding of or before any arbitrator, court, tribunal or governmental
authority is pending or threatened by or against the Trust or the Trust Company
(a) with respect to any of the Transaction Documents or any of the transactions
contemplated thereby, or (b) which if determined adversely against the Trust or
the Trust Company, as the case may be, individually or in the aggregate, would

 

21

 

materially and
adversely affect the Trust Estate or the validity of, or the right, power or
authority of the Trust to enter into or perform its obligations under, the
Transaction Documents;

 

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

 

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

 

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

 

(ix) under 12 Del. C. § 3805(b), no creditor of the Certificateholder
(including creditors of the Trust Depositor, as the Certificateholder) shall
have any right to obtain possession of, or otherwise exercise legal or
equitable remedies with respect to, the property of the Trust; and

 

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

 

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

 

22

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

23

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(o)           The
Underwriters shall have received a certificate dated the Closing Date of any of
the Chairman of the Board, the President, the Executive Vice President, any
Vice President, the Treasurer, any Assistant Treasurer, the principal financial
officer or the principal accounting officer of Harley-Davidson in which such

 

24

 

officer shall
state that, to the best of his or her knowledge after reasonable investigation:

 

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

 

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

 

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

 

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

 

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

 

(q)           At
or prior to the Time of Sale and at the Closing Date, Ernst & Young LLP
shall have furnished to the Underwriters a letter or letters, dated
respectively as of the date of the Time of Sale and as of the Closing Date,
substantially in the forms of the drafts to which the Underwriters have
previously agreed and otherwise in form and substance satisfactory to the
Underwriters concerning the Time of Sale Information and the Prospectus.

 

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

 

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

 

25

 

(t)            The
Class B Notes shall have been rated at least “A” by S&P and “A3” by Moody’s.

 

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

 

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

 

(w)          Prior to the Closing Date, the Trust
Depositor shall have furnished to the Underwriters such further information,
certificates and documents as the Underwriters may reasonably request.

 

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

 

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

 

10.           Indemnification
and Contribution. (a) The Trust Depositor and Harley-Davidson, jointly and
severally, agree to indemnify and hold harmless each Underwriter, the
directors, officers, employees and agents of each Underwriter and each person
who controls each Underwriter within the meaning of either the Act or the
Exchange Act against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the Act, the
Exchange Act or other federal or state statutory law or regulation, at common
law or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact contained in the Registration
Statement, the Preliminary Prospectus, the Prospectus, any Trust Free Writing
Prospectus, the Time of Sale Information, the Issuer Information or any
information provided by the Trust Depositor or Harley-Davidson to any
Underwriter or any holder or prospective purchaser of Offered Securities or in
any amendment thereof or supplement thereto, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably

 

26

 

incurred by
them in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the Trust Depositor and Harley-Davidson will
not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon any such untrue statement or
alleged untrue statement or omission or alleged omission made (x) in the
Preliminary Prospectus, the Prospectus, any Trust Free Writing Prospectus or
the Time of Sale Information, or in any amendment thereof or supplement
thereto, in reliance upon and in conformity with the Underwriter Information or
(y) in any Derived Information (as defined in Section 11 below) unless such
untrue statement or alleged untrue statement or omission or alleged omission
made in any Derived Information results from an error or omission in the
Preliminary Prospectus, the Prospectus or any Issuer Information.

 

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

 

(c)           Upon
receipt by an indemnified party under this Section 10 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 10,
promptly notify the indemnifying party in writing of the commencement thereof;
but the failure so to notify the indemnifying party (i) will not relieve it
from liability under paragraph (a) or (b) above unless and to the extent it did
not otherwise learn of such action and such failure results in the forfeiture
by the indemnifying party of substantial rights and defenses and (ii) will not,
in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint
counsel of the indemnifying party’s choice at the indemnifying party’s expense
to represent the indemnified party in any action for which indemnification is
sought (in which case the indemnifying party shall not thereafter be
responsible for the fees and expenses of any separate counsel retained by the
indemnified party or parties except as set forth below); provided,
however, that such counsel shall be
satisfactory to the indemnified party. Notwithstanding the indemnifying party’s
election to appoint counsel to represent the indemnified party in an action,
the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest, (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified
parties and the indemnifying party and the indemnified parties shall have
reasonably concluded that there may be legal defenses available to them and/or
other indemnified parties that are different from or additional to those

 

27

 

available to
the indemnifying party, (iii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of the institution of such action
or (iv) the indemnifying party shall authorize the indemnified party to employ
separate counsel at the expense of the indemnifying party. An indemnifying
party shall not, without the prior written consent of the indemnified party,
effect any settlement of any pending or threatened proceeding in respect of
which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party, unless such settlement
(x) does not include a statement as to, or admission of, fault, culpability or
a failure to act by or on behalf of any such indemnified party, and (y)
includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such proceeding.

 

(d)           In
the event that the indemnity provided in paragraph (a) or (b) of this Section
10 is unavailable to or insufficient to hold harmless an indemnified party for
any reason, the Trust Depositor, Harley-Davidson and each Underwriter agree to
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively “Losses”) to which the Trust Depositor,
Harley-Davidson and the several Underwriters may be subject in such proportion
as is appropriate to reflect the relative benefits received by the Trust
Depositor and Harley-Davidson on the one hand and by the several Underwriters
on the other from the offering of the Offered Securities; provided,
however, that in no case shall any
Underwriter be responsible for any amount in excess of the purchase discount or
commission applicable to the Offered Securities purchased by such Underwriter
hereunder. If the allocation provided by the immediately preceding sentence is
unavailable for any reason, the Trust Depositor, Harley-Davidson and each
Underwriter shall contribute in such proportion as is appropriate to reflect
not only such relative benefits but also the relative fault of the Trust
Depositor and Harley-Davidson on the one hand and of the several Underwriters
on the other in connection with the statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. Benefits
received by the Trust Depositor and Harley-Davidson shall be deemed to be equal
to the total net proceeds from the offering (before deducting expenses), and
benefits received by any Underwriter shall be deemed to be equal to the total
purchase discounts and commissions received by such Underwriter from the Trust
Depositor in connection with the purchase of the Offered Securities hereunder.
Relative fault shall be determined by reference to whether any alleged untrue
statement or omission relates to information provided by the Trust Depositor
and Harley-Davidson on the one hand or the several Underwriters on the other.
The Trust Depositor, Harley-Davidson and the several Underwriters agree that it
would not be just and equitable if contribution were determined by pro rata
allocation or any other method of allocation that does not take account of the
equitable considerations referred to above. Notwithstanding the provisions of
this paragraph (d), no person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section 10, each person who controls any Underwriter within
the meaning of either the Act or the Exchange Act and each director, officer,
employee and agent of such Underwriter shall have the same rights to
contribution as such Underwriter, and each person who controls the Trust
Depositor or Harley-Davidson within the meaning of either the Act or the
Exchange Act and each officer and director of the Trust Depositor or
Harley-Davidson shall have the same rights to contribution as the Trust

 

28

 

Depositor or
Harley-Davidson, subject in each case to the applicable terms and conditions of
this paragraph (d).

 

11.           Free
Writing Prospectuses.

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)           Each
Underwriter represents, warrants, covenants and agrees with the Trust Depositor
that, other than the Preliminary Prospectus and the Prospectus, it has not
made, used, prepared, authorized, approved or referred to and will not prepare,
make, use, authorize, approve or refer to any “written communication” (as
defined in Rule 405 under the Act) that constitutes an offer to sell or
solicitation of an offer to buy the Offered Securities, including but not
limited to any “ABS informational and computational materials” as defined in
Item 1101(a) of Regulation AB under the Act; provided, however,
that (i) each Underwriter may prepare and convey one or more “written
communications” (as defined in Rule 405 under the Act) containing

 

29

 

no more than
the following: (1) information included in the previously filed Preliminary
Prospectus, (2) information relating to the class, size, rating, price, CUSIP
numbers, coupon, yield, spread, benchmark, pricing prepayment speed and clean
up call information, status and/or legal maturity date of the Offered
Securities, any credit enhancement expected to be provided with respect to the
Offered Securities or the Contracts, any derivatives expected to be entered
into in connection with the Offered Securities or the Contracts, the weighted
average life, expected final payment date, trade date, settlement date and
payment window of one or more classes of Offered Securities, the names of any
underwriters for one or more classes of Offered Securities and the names of any
credit enhancement or derivative providers, (3) the eligibility of the Offered
Securities to be purchased by ERISA plans and (4) syndicate structure and a
column or other entry showing the status of the subscriptions for the Offered Securities
(both for the issuance as a whole and for each Underwriter’s retention) and/or
expected pricing parameters of the Offered Securities (each such written
communication, an “Underwriter Free Writing Prospectus”); (ii) each Underwriter
shall provide the Trust Depositor with a true and accurate copy of each Free
Writing Prospectus conveyed by it of the type referred to in Rule 433(d)(5)(ii)
under the Act no later than the close of business on the date of first use and
in any event not less than one business day prior to the required date of
filing with the Commission; and (iii) each Underwriter is permitted to provide
information customarily included in confirmations of sales of securities and
notices of allocations and information delivered in compliance with Rule 134 of
the Act.

 

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

 

(i) any Free Writing Prospectus that is included in the Time of Sale
Information (any such Free Writing Prospectus, a “Trust Free Writing Prospectus”);

 

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

 

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

 

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

 

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

 

The issuer has
filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you

 

30

 

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

 

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

 

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

 

(j)            Prior
to entering into any Contract of Sale, each Underwriter shall convey the Time
of Sale Information to the prospective investor. Each Underwriter shall
maintain sufficient records to document its conveyance of the Time of Sale
Information to the potential investor prior to the formation of the related
Contract of Sale and shall maintain such records as required by the Rules and
Regulations.

 

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

 

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

 

31

 

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

 

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

 

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

 

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

 

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

 

32

 

contemplated
hereby or other matters relating to such transactions will be performed solely
for the benefit of the Underwriters and shall not be on behalf of
Harley-Davidson or the Trust Depositor.

 

17.           Notices.
All communications hereunder will be in writing and effective only on receipt,
and, if sent to the Underwriters, will be mailed, delivered or telegraphed and
confirmed to them c/o Citigroup Global Markets Inc., 390 Greenwich Street, 6th
Floor, New York, New York 10013, Attention: North American ABS; or if sent to
the Trust Depositor, will be mailed, delivered or telegraphed and confirmed to
it at Harley-Davidson Customer Funding Corp., 3850 Arrowhead Drive, Carson
City, Nevada 89706, Attention: President; or if sent to Harley-Davidson, will
be mailed, delivered, telegraphed and confirmed to it at Harley-Davidson Credit
Corp., 3850 Arrowhead Drive, Carson City, Nevada 89706, Attention: President.

 

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

 

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

 

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

 

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

 

33

 

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

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CUSTOMER FUNDING

  
	
   

  	
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By :

  	
  /s/ Perry A.
  Glassgow

  	
   

  
	
   

  	
   

  	
  Name: Perry
  A. Glassgow

  
	
   

  	
   

  	
  Title: Vice
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HARLEY-DAVIDSON
  CREDIT CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Perry A.
  Glassgow

  	
   

  
	
   

  	
   

  	
  Name: Perry
  A. Glassgow

  
	
   

  	
   

  	
  Title: Vice
  President and Treasurer

  

 

 

The foregoing
Agreement is hereby

confirmed and
accepted as of the

date first
above written.

 

 

CITIGROUP
GLOBAL MARKETS INC.

WACHOVIA
CAPITAL MARKETS, LLC

ABN AMRO
INCORPORATED

BNP PARIBAS
SECURITIES CORP.

J.P. MORGAN
SECURITIES INC.

 

By: CITIGROUP
GLOBAL MARKETS INC.

 

	
   

  
	
  By:

  	
  /s/ Christopher
  D’Onofrio

  	
   

  
	
   

  	
  Name:
  Christopher D’Onofrio

  
	
   

  	
  Title: Vice
  President

  

 

 

SCHEDULE I

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2006-3

 

	
  OFFERED SECURITY

  	
   

  	
  PRINCIPAL AMOUNT

  	
   

  	
  PRICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-1 Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  99.90000

  	
  %

  
	
  Wachovia Capital Markets, LLC

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  99.90000

  	
  %

  
	
  ABN AMRO Incorporated

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  99.90000

  	
  %

  
	
  BNP Paribas Securities Corp.

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  99.90000

  	
  %

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  99.90000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-2 Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  	
  $

  	
  45,600,000

  	
   

  	
  99.85984

  	
  %

  
	
  Wachovia Capital Markets, LLC

  	
   

  	
  $

  	
  45,600,000

  	
   

  	
  99.85984

  	
  %

  
	
  ABN AMRO Incorporated

  	
   

  	
  $

  	
  45,600,000

  	
   

  	
  99.85984

  	
  %

  
	
  BNP Paribas Securities Corp.

  	
   

  	
  $

  	
  45,600,000

  	
   

  	
  99.85984

  	
  %

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  $

  	
  45,600,000

  	
   

  	
  99.85984

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-3 Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  	
  $

  	
  52,800,000

  	
   

  	
  99.81266

  	
  %

  
	
  Wachovia Capital Markets, LLC

  	
   

  	
  $

  	
  52,800,000

  	
   

  	
  99.81266

  	
  %

  
	
  ABN AMRO Incorporated

  	
   

  	
  $

  	
  52,800,000

  	
   

  	
  99.81266

  	
  %

  
	
  BNP Paribas Securities Corp.

  	
   

  	
  $

  	
  52,800,000

  	
   

  	
  99.81266

  	
  %

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  $

  	
  52,800,000

  	
   

  	
  99.81266

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class A-4 Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  	
  $

  	
  32,000,000

  	
   

  	
  99.77849

  	
  %

  
	
  Wachovia Capital Markets, LLC

  	
   

  	
  $

  	
  32,000,000

  	
   

  	
  99.77849

  	
  %

  
	
  ABN AMRO Incorporated

  	
   

  	
  $

  	
  32,000,000

  	
   

  	
  99.77849

  	
  %

  
	
  BNP Paribas Securities Corp.

  	
   

  	
  $

  	
  32,000,000

  	
   

  	
  99.77849

  	
  %

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  $

  	
  32,000,000

  	
   

  	
  99.77849

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class B Notes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.66628

  	
  %

  
	
  Wachovia Capital Markets, LLC

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.66628

  	
  %

  
	
  ABN AMRO Incorporated

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.66628

  	
  %

  
	
  BNP Paribas Securities Corp.

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.66628

  	
  %

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  $

  	
  9,600,000

  	
   

  	
  99.66628

  	
  %

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]