Document:

Exhibit 4.1

 

 

TRUST AGREEMENT

by and between

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,

as Trust Depositor,

and

WILMINGTON TRUST COMPANY,

as Owner Trustee

 

Dated as of January 1, 2007

 

 

  TABLE OF CONTENTS
  	  
  	   
  	   
  	   
  	  Page
  
	  ARTICLE ONE
  	   
  	  DEFINITIONS
  	   
  	  1
  
	  Section
  1.01.
  	   
  	  Capitalized Terms
  	   
  	  1
  
	  Section
  1.02.
  	   
  	  Other Definitional Provisions
  	   
  	  3
  
	  Section
  1.03.
  	   
  	  Usage of Terms
  	   
  	  3
  
	  Section
  1.04.
  	   
  	  Section References
  	   
  	  3
  
	  Section
  1.05.
  	   
  	  Accounting Terms
  	   
  	  3
  
	  ARTICLE TWO
  	   
  	  ORGANIZATION
  	   
  	  3
  
	  Section
  2.01.
  	   
  	  Name
  	   
  	  3
  
	  Section
  2.02.
  	   
  	  Office
  	   
  	  4
  
	  Section
  2.03.
  	   
  	  Purposes and Powers
  	   
  	  4
  
	  Section
  2.04.
  	   
  	  Appointment of Owner Trustee
  	   
  	  4
  
	  Section
  2.05.
  	   
  	  Initial Capital Contribution of Owner Trust
  Estate
  	   
  	  5
  
	  Section
  2.06.
  	   
  	  Declaration of Trust
  	   
  	  5
  
	  Section
  2.07.
  	   
  	  Liability of Trust Depositor
  	   
  	  5
  
	  Section
  2.08.
  	   
  	  Title to Trust Property
  	   
  	  5
  
	  Section
  2.09.
  	   
  	  Situs of Trust
  	   
  	  5
  
	  Section
  2.10.
  	   
  	  Representations and Warranties of the Trust
  Depositor
  	   
  	  5
  
	  Section
  2.11.
  	   
  	  Federal Income Tax Treatment
  	   
  	  6
  
	  Section
  2.12.
  	   
  	  Texas State Tax Matters
  	   
  	  7
  
	  ARTICLE THREE
  	   
  	  TRUST CERTIFICATE AND TRANSFER OF INTERESTS
  	   
  	  7
  
	  Section
  3.01.
  	   
  	  Initial Ownership
  	   
  	  7
  
	  Section
  3.02.
  	   
  	  The Trust Certificate
  	   
  	  8
  
	  Section
  3.03.
  	   
  	  Authentication and Delivery of Trust Certificate
  	   
  	  8
  
	  Section
  3.04.
  	   
  	  Registration of Transfer and Exchange of Trust
  Certificate
  	   
  	  8
  
	  Section
  3.05.
  	   
  	  Mutilated, Destroyed, Lost or Stolen Trust
  Certificate
  	   
  	  9
  
	  Section
  3.06.
  	   
  	  Person Deemed Owner
  	   
  	  9
  
	  Section
  3.07.
  	   
  	  Access to List of Certificateholder’s Name and
  Address
  	   
  	  9
  
	  Section
  3.08.
  	   
  	  Maintenance of Office or Agency
  	   
  	  9
  
	  Section
  3.09.
  	   
  	  Trust Certificate
  	   
  	  10
  
	  Section
  3.10.
  	   
  	  Appointment of Paying Agent
  	   
  	  10
  
	  Section
  3.11.
  	   
  	  Ownership by Trust Depositor of Trust Certificate
  	   
  	  10
  
	  ARTICLE FOUR
  	   
  	  ACTIONS BY OWNER TRUSTEE
  	   
  	  10
  
	  Section
  4.01.
  	   
  	  Prior Notice to Owner with Respect to Certain
  Matters
  	   
  	  10
  
	  Section
  4.02.
  	   
  	  Action by Owner with Respect to Certain Matters
  	   
  	  11
  
	  Section
  4.03.
  	   
  	  Action by Owner with Respect to Bankruptcy
  	   
  	  11
  
	  Section
  4.04.
  	   
  	  Restrictions on Owner’s Power
  	   
  	  11
  
	  ARTICLE FIVE
  	   
  	  APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
  	   
  	  12
  
	  Section
  5.01.
  	   
  	  Application of Trust Funds
  	   
  	  12
  
	  Section
  5.02.
  	   
  	  Method of Payment
  	   
  	  12
  
	  Section
  5.03.
  	   
  	  Accounting and Reports to the Certificateholder,
  Owner, the Internal Revenue Service and Others
  	   
  	  12
  
	  Section
  5.04.
  	   
  	  Signature on Returns; Tax Matters Partner
  	   
  	  12
  
	  ARTICLE SIX
  	   
  	  AUTHORITY AND DUTIES OF OWNER TRUSTEE
  	   
  	  13
  
	  Section
  6.01.
  	   
  	  General Authority
  	   
  	  13
  
	  Section
  6.02.
  	   
  	  General Duties
  	   
  	  13
  
	  Section
  6.03.
  	   
  	  Action Upon Instruction
  	   
  	  13
  
	  Section
  6.04.
  	   
  	  No Duties Except as Specified in this Agreement
  or in Instructions
  	   
  	  14
  
	  Section
  6.05.
  	   
  	  No Action Except Under Specified Documents or
  Instructions
  	   
  	  14
  
	  Section
  6.06.
  	   
  	  Restrictions
  	   
  	  14
  
						

   

     
  	  Section 6.07.
  	   
  	  Pennsylvania Motor Vehicle Sales Finance Act
  Licenses
  	   
  	  15
  
	  ARTICLE SEVEN
  	   
  	  CONCERNING THE OWNER TRUSTEE
  	   
  	  15
  
	  Section
  7.01.
  	   
  	  Acceptance of Trusts and Duties
  	   
  	  15
  
	  Section
  7.02.
  	   
  	  Furnishing of Documents
  	   
  	  16
  
	  Section
  7.03.
  	   
  	  Representations and Warranties
  	   
  	  16
  
	  Section
  7.04.
  	   
  	  Reliance; Advice of Counsel
  	   
  	  16
  
	  Section
  7.05.
  	   
  	  Not Acting in Individual Capacity
  	   
  	  17
  
	  Section
  7.06.
  	   
  	  Owner Trustee Not Liable for Trust Certificate,
  Notes or Contracts
  	   
  	  17
  
	  Section
  7.07.
  	   
  	  Owner Trustee May Own Trust Certificate and Notes
  	   
  	  17
  
	  ARTICLE EIGHT
  	   
  	  COMPENSATION OF OWNER TRUSTEE
  	   
  	  18
  
	  Section
  8.01.
  	   
  	  Owner Trustee’s Fees and Expenses
  	   
  	  18
  
	  Section
  8.02.
  	   
  	  Indemnification
  	   
  	  18
  
	  Section
  8.03.
  	   
  	  Payments to the Owner Trustee
  	   
  	  18
  
	  ARTICLE NINE
  	   
  	  TERMINATION OF TRUST AGREEMENT
  	   
  	  18
  
	  Section
  9.01.
  	   
  	  Termination of Trust Agreement
  	   
  	  18
  
	  ARTICLE TEN
  	   
  	  SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER
  TRUSTEES
  	   
  	  19
  
	  Section
  10.01.
  	   
  	  Eligibility Requirements for Owner Trustee
  	   
  	  19
  
	  Section
  10.02.
  	   
  	  Resignation or Removal of Owner Trustee
  	   
  	  20
  
	  Section
  10.03.
  	   
  	  Successor Owner Trustee
  	   
  	  20
  
	  Section
  10.04.
  	   
  	  Merger or Consolidation of Owner Trustee
  	   
  	  21
  
	  Section
  10.05.
  	   
  	  Appointment of Co-Trustee or Separate Trustee
  	   
  	  21
  
	  ARTICLE ELEVEN
  	   
  	  MISCELLANEOUS
  	   
  	  22
  
	  Section
  11.01.
  	   
  	  Supplements and Amendments
  	   
  	  22
  
	  Section
  11.02.
  	   
  	  No Legal Title to Trust Estate in Owner
  	   
  	  23
  
	  Section
  11.03.
  	   
  	  Limitations on Rights of Others
  	   
  	  23
  
	  Section
  11.04.
  	   
  	  Notices
  	   
  	  23
  
	  Section
  11.05.
  	   
  	  Severability of Provisions
  	   
  	  23
  
	  Section
  11.06.
  	   
  	  Counterparts
  	   
  	  23
  
	  Section
  11.07.
  	   
  	  Successors and Assigns
  	   
  	  24
  
	  Section
  11.08.
  	   
  	  Covenants of the Trust Depositor
  	   
  	  24
  
	  Section
  11.09.
  	   
  	  No Petition
  	   
  	  24
  
	  Section
  11.10.
  	   
  	  No Recourse
  	   
  	  24
  
	  Section
  11.11.
  	   
  	  Headings
  	   
  	  24
  
	  Section
  11.12.
  	   
  	  Governing Law
  	   
  	  24
  
	  Section
  11.13.
  	   
  	  Trust Certificate Transfer Restrictions
  	   
  	  25
  
	  Section
  11.14.
  	   
  	  Trust Depositor Payment Obligation
  	   
  	  25
  
	   
  	   
  	   
  	   
  	   
  
	  EXHIBITS
  	   
  	   
  
	   
  	   
  	   
  	   
  	   
  
	  Exhibit A - Form of Certificate of Trust
  	   
  	  A-1
  
	  Exhibit B - Form of Trust Certificate
  	   
  	  B-1
  
						

   

 ii

TRUST AGREEMENT dated as of January 1, 2007, between
HARLEY-DAVIDSON CUSTOMER FUNDING CORP., a Nevada corporation, as Trust
Depositor (the “Trust Depositor”), and
WILMINGTON TRUST COMPANY, a Delaware banking corporation, as owner trustee (the “Owner Trustee”).

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

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

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

ARTICLE ONE

DEFINITIONS

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

“Administration 
Agreement”
means the Administration Agreement, dated as of January 15, 2007, among the
Trust, the Trust Depositor, the Indenture Trustee and Harley-Davidson Credit,
as administrator.

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

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

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

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

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

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

 1
 

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

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

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

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

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

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

“Indenture”  means the
Indenture dated as of January 15, 2007 between the Trust and The Bank of New
York Trust Company, N.A.

“Owner” means the Holder of the
Trust Certificate.

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

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

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

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

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

“Sale and Servicing Agreement” means the Sale and Servicing Agreement,
dated as of January 15, 2007, among the Trust, as Issuer, the Trust Depositor,
Harley-Davidson Credit, as servicer, and The Bank of New York Trust Company,
N.A., as Indenture Trustee, as the same may be amended or supplemented from
time to time.

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

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

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

 2
 

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

“Trust” means the trust
established by this Agreement.

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

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

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

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

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

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

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

ARTICLE TWO

ORGANIZATION

Section 2.01.                         Name.  The Trust created hereby shall be known as “Harley-Davidson 
Motorcycle Trust 2007-1”, in which name the Owner Trustee may
conduct the activities of the Trust, make and execute contracts and other
instruments on behalf of the Trust and sue and be sued.

 3
 

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

Section 2.03.                         Purposes
and Powers.

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

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

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

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

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

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

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

The Trust shall not engage in any activities other
than in connection with the foregoing. 
Nothing contained herein shall be deemed to authorize the Owner Trustee
to engage in any business operations or any activities other than those set
forth in the introductory sentence of this Section.  Specifically, the Owner Trustee shall have no
authority to engage in any business operations, or acquire any assets other
than those specifically included in the Trust Estate under Section 1.01, or
otherwise vary the assets held by the Trust. 
Similarly, the Owner Trustee shall have no discretionary duties other
than performing those ministerial acts set forth above necessary to accomplish
the purpose of this Trust as set forth in the introductory sentence of this
Section.

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

 4
 

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

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

Section 2.07.                         Liability
of Trust Depositor.

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

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

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

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

Section 2.10.                         Representations
and Warranties of the Trust Depositor.

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

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

 5
 

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

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

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

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

Section 2.11.                         Federal
Income Tax Treatment.

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

 6
 

Section 2.12.                         Texas State Tax Matters.

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

ARTICLE THREE

TRUST CERTIFICATE AND TRANSFER OF INTERESTS

Section 3.01.                         Initial
Ownership.

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

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

 7
 

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

Section 3.03.                         Authentication
and Delivery of Trust Certificate. 
The Owner Trustee shall cause to be authenticated and delivered upon the
order of the Trust Depositor, in exchange for the Contracts and the other Trust
Assets, simultaneously with the sale, assignment and transfer to the Trust of
the Contracts and other Trust Assets, and the constructive delivery to the
Owner Trustee of the Contract Files and the other Trust Assets, a Trust
Certificate duly authenticated by the Owner Trustee, evidencing the entire
ownership of the Trust, and Notes issued by the Owner Trustee and authenticated
by the Indenture Trustee in aggregate principal amount of, in the case of (i)
Class A-1 Notes, $141,000,000, (ii) Class A-2 Notes, $290,000,000, (iii) Class
A-3 Notes, $158,000,000, (iv) Class A-4 Notes, $143,000,000, (v) Class B
Notes, $48,000,000 and (vi) Class C Notes, $20,000,000, or be valid for any
purpose, unless there appears on such Trust Certificate a certificate of
authentication substantially in the form set forth in the form of Trust
Certificate attached hereto as Exhibit B,
executed by the Owner Trustee or its authenticating agent, by manual signature,
and such certificate upon any Trust Certificate shall be conclusive evidence,
and the only evidence, that such Trust Certificate has been duly authenticated
and delivered hereunder.  Upon issuance,
authorization and delivery pursuant to the terms hereof, the Trust Certificate
will be entitled to the benefits of this Agreement.

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

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

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

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

 8
 

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

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

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

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

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

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

 9
 

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

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

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

ARTICLE FOUR

ACTIONS BY OWNER TRUSTEE

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

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

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

 10
 

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

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

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

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

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

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

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

 11
 

ARTICLE FIVE

APPLICATION OF TRUST FUNDS;

CERTAIN DUTIES

 

Section 5.01.                         Application
of Trust Funds.

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

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

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

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

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

Section 5.04.                         Signature
on Returns; Tax Matters Partner.

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

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

 12
 

ARTICLE SIX

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

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

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

Section 6.03.                         Action
Upon Instruction.

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

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

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

 13
 

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

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

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

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

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

 14
 

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

ARTICLE SEVEN

CONCERNING THE OWNER TRUSTEE

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

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

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

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

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

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

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

 15
 

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

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

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

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

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

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

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

Section 7.04.                         Reliance;
Advice of Counsel.

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

 16

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

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

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

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

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

 17
 

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

ARTICLE EIGHT

COMPENSATION OF OWNER TRUSTEE

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

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

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

ARTICLE NINE

TERMINATION OF TRUST AGREEMENT

Section 9.01.                         Termination
of Trust Agreement.

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

 18
 

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

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

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

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

ARTICLE TEN

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

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

 19
 

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

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

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

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

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

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

 20
 

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

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

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

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

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

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

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

 21
 

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

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

ARTICLE ELEVEN

MISCELLANEOUS

Section 11.01.                  Supplements and
Amendments.

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

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

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

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

 22
 

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

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

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

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

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

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

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

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

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

 23
 

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

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

Section 11.09.                  No Petition.

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

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

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

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

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

 24
 

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

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

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

[signature page follows]

 25

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

	
   

  	
   

  	
  HARLEY-DAVIDSON CUSTOMER FUNDING

  
	
   

  	
   

  	
  CORP., as Trust Depositor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Perry A. Glassgow

  	
   

  
	
   

  	
   

  	
  Printed Name: 
  Perry A. Glassgow

  
	
   

  	
   

  	
  Title:  Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
   

  	
  as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michele C. Harra

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
  Michele C. Harra

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Financial Services Officer

  	
   

  
										

 

EXHIBIT A

 

FORM OF CERTIFICATE OF TRUST OF

Harley-Davidson Motorcycle Trust 2007-1

This Certificate of Trust of Harley-Davidson
Motorcycle Trust 2007-1 (the “Trust”), dated
                       ,
2007, is being duly executed and filed by Wilmington Trust Company, a Delaware
banking corporation, as Owner Trustee, to form a statutory trust under the
Delaware Statutory Trust Act (12 Del. Code, §
3801 et seq.).

1.             Name. 
The name of the statutory trust formed hereby is Harley-Davidson
Motorcycle Trust 2007-1.

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

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

	
   

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
  not in its individual capacity but solely as

  
	
   

  	
  Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

EXHIBIT B

 

FORM OF TRUST CERTIFICATE

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

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

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-1 CERTIFICATE

	
  NO.

  	
   

  	
  Initial Trust Certificate

  
	
   

  	
   

  	
  Fractional Interest 100%

  

 

THIS CERTIFIES THAT Harley-Davidson Customer Funding
Corp. is the registered owner of  100% of
the non-assessable, fully-paid, fractional undivided beneficial interest in the
Harley-Davidson Motorcycle Trust 2007-1 (the “Trust”)
formed by Harley-Davidson Customer Funding Corp., a Nevada corporation (the “Trust Depositor”).

The Trust was created pursuant to a Trust Agreement,
dated as of January 1, 2007 (as amended and supplemented from time to time, the
“Trust Agreement”), between the Trust
Depositor, and Wilmington Trust Company, as owner trustee (the “Owner Trustee”), a summary of certain of the pertinent
provisions of which is set forth below. 
To the extent not otherwise defined herein, the capitalized terms used
herein have the meanings assigned to them in (i) the Trust Agreement, (ii) the
Sale and Servicing Agreement, dated as of January 15, 2007 (the “Sale and Servicing Agreement”), among the Trust, the Trust
Depositor, Harley-Davidson Credit Corp. (“Harley-Davidson Credit”),
as Servicer (in such capacity, the “Servicer”) and
The Bank of New York Trust Company, N.A., as Indenture Trustee (the “Indenture Trustee”) or (iii) the
Indenture, dated as of January 15, 2007 (the “Indenture”),
between the Trust and the Indenture Trustee.

This Trust Certificate is the duly authorized Trust
Certificate designated as “Harley-Davidson
Motorcycle Trust 2007-1 Certificate”  (the “Trust Certificate”).  Issued under the Indenture are five classes
of notes designated as “[    ]%
Motorcycle Contract Backed Notes, Class A-1”, “[    ]%
Motorcycle Contract Backed Notes, Class A-2”, “[    ]%
Motorcycle Contract Backed Notes, Class A-3”, “[    ]%  Motorcycle Contract Backed Notes, Class A-4”,
“[    ]% Motorcycle Contract Backed Notes, Class B”
and “[    ]% Motorcycle Contract
Backed Notes, Class C” (collectively, the “Notes”).  This Trust Certificate is issued under and is
subject to the terms, provisions and conditions of the Trust

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

Under the Trust Agreement, there will be distributed
on the fifteenth day of each month or if such day is not a Business Day the
next succeeding Business Day commencing February 15, 2007 (each, a “Distribution Date”) to the person in whose name this Trust
Certificate is registered as of the last Business Day immediately preceding the
calendar month in which such Distribution Date occurs (each, a “Record Date”), such Certificateholder’s fractional
undivided beneficial interest in the amount to be distributed to the
Certificateholder on such Distribution Date.

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

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

Each Certificateholder, by its acceptance of a Trust
Certificate or  beneficial interest in a
Trust Certificate, covenants and agrees that such Certificateholder will not at
any time institute against the Trust or the Trust Depositor, or join in any
institution against the Trust or the Trust Depositor, Harley-Davidson

Credit or the Servicer
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Trust Certificate, the Notes, the Trust Agreement or any of the other
Transaction Documents.

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

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

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

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

[REVERSE OF CERTIFICATE]

 

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

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

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

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

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

the sum of (i) the
initial Pool Balance on the Initial Cutoff Date and (ii) the aggregate
Principal Balance of the Subsequent Contracts as of their related Subsequent
Cutoff Dates.

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

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

	
  Dated:

  	
  Harley-Davidson Motorcycle Trust 2007-1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,
  not in its individual

  capacity but solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  
						

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
  Wilmington Trust Company,

  
	
  not in its individual capacity but solely

  
	
  as Owner Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

ASSIGNMENT

 

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

PLEASE
INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

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

 

 

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

 

 

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

	
  Dated:

  	
   

  	
   

  

 

Signature
Guaranteed:

 

	
   

  	
   

  	
   

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

  	
   

  	
  NOTICE: The signature to this assignment must
  correspond with the name of the registered owner as it appears on the face of
  the within Trust Certificate in every particular, without alteration or
  enlargement or any change whatever.Exhibit
4.2

 

 

HARLEY-DAVIDSON
MOTORCYCLE TRUST 2007-1,

as Issuer,

 

 

and

 

 

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

not in its individual capacity but solely in its capacity

as Indenture Trustee

 

 

 

 

INDENTURE

 

Dated as of January 15,
2007

 

 

 

 

Motorcycle Contract
Backed Notes

 

  CROSS-REFERENCE
TABLE
  	  TIA
  	   
  	  Indenture
  
	  Section
  	   
  	  Section
  
	  310(a)(1)
  	   
  	  6.11
  
	  (a)(2)
  	   
  	  6.11
  
	  (a)(3)
  	   
  	  6.10
  
	  (a)(4)
  	   
  	  N.A.
  
	  (a)(5)
  	   
  	  6.11
  
	  (b)
  	   
  	  6.08; 6.11; 11.04
  
	  (c)
  	   
  	  N.A.
  
	  311(a)
  	   
  	  6.13
  
	  (b)
  	   
  	  6.13
  
	  (c)
  	   
  	  N.A.
  
	  312(a)
  	   
  	  7.01; 7.02
  
	  (b)
  	   
  	  7.02
  
	  (c)
  	   
  	  7.02
  
	  313(a)
  	   
  	  7.04
  
	  (b)
  	   
  	  7.04
  
	  (c)
  	   
  	  7.04
  
	  (d)
  	   
  	  7.04
  
	  314(a)
  	   
  	  7.03
  
	  (b)
  	   
  	  3.06
  
	  (c)(1)
  	   
  	  2.02; 6.02; 11.01
  
	  (c)(2)
  	   
  	  11.01
  
	  (c)(3)
  	   
  	  11.01
  
	  (d)
  	   
  	  11.01
  
	  (e)
  	   
  	  11.01
  
	  (f)
  	   
  	  N.A.
  
	  315(a)
  	   
  	  6.01
  
	  (b)
  	   
  	  6.05
  
	  (c)
  	   
  	  6.01
  
	  (d)
  	   
  	  5.12; 6.01
  
	  (e)
  	   
  	  5.14
  
	  316(a)(1)(A)
  	   
  	  5.12
  
	  (a)(1)(B)
  	   
  	  5.02
  
	  (a)(2)
  	   
  	  N.A.
  
	  (b)
  	   
  	  5.08
  
	  (c)
  	   
  	  N.A.
  
	  317(a)
  	   
  	  5.03; 5.04
  
	  (b)
  	   
  	  3.03
  
	  318(a)
  	   
  	  11.18
  

   
  

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

 i
 

    TABLE OF CONTENTS
  	  
  	   
  	   
  	   
  	  Page
  
	   
  	   
  	   
  
	  ARTICLE ONE DEFINITIONS AND INCORPORATION BY
  REFERENCE
  	   
  	  2
  
	   
  	   
  	   
  
	  Section 1.01.
  	   
  	  Definitions
  	   
  	  2
  
	  Section 1.02.
  	   
  	  Incorporation by Reference of
  Trust Indenture Act
  	   
  	  10
  
	  Section 1.03.
  	   
  	  Rules of Construction
  	   
  	  10
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE TWO THE NOTES
  	   
  	  11
  
	   
  	   
  	   
  
	  Section 2.01.
  	   
  	  Form
  	   
  	  11
  
	  Section 2.02.
  	   
  	  Execution, Authentication and
  Delivery
  	   
  	  11
  
	  Section 2.03.
  	   
  	  Temporary Notes
  	   
  	  12
  
	  Section 2.04.
  	   
  	  Registration; Registration of
  Transfer and Exchange
  	   
  	  12
  
	  Section 2.05.
  	   
  	  Mutilated, Destroyed, Lost or
  Stolen Notes
  	   
  	  14
  
	  Section 2.06.
  	   
  	  Persons Deemed Owner
  	   
  	  15
  
	  Section 2.07.
  	   
  	  Payment of Principal and
  Interest; Defaulted Interest
  	   
  	  15
  
	  Section 2.08.
  	   
  	  Cancellation
  	   
  	  16
  
	  Section 2.09.
  	   
  	  Book-Entry Notes
  	   
  	  17
  
	  Section 2.10.
  	   
  	  Notices to Clearing Agency
  	   
  	  17
  
	  Section 2.11.
  	   
  	  Definitive Notes
  	   
  	  17
  
	  Section 2.12.
  	   
  	  Release of Collateral
  	   
  	  18
  
	  Section 2.13.
  	   
  	  Tax Treatment
  	   
  	  18
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE THREE COVENANTS
  	   
  	  19
  
	   
  	   
  	   
  
	  Section 3.01.
  	   
  	  Payment of Principal and
  Interest
  	   
  	  19
  
	  Section 3.02.
  	   
  	  Maintenance of Office or Agency
  	   
  	  19
  
	  Section 3.03.
  	   
  	  Money for Payments to be Held
  in Trust
  	   
  	  19
  
	  Section 3.04.
  	   
  	  Existence
  	   
  	  21
  
	  Section 3.05.
  	   
  	  Protection of Collateral
  	   
  	  21
  
	  Section 3.06.
  	   
  	  Opinions as to Collateral
  	   
  	  22
  
	  Section 3.07.
  	   
  	  Performance of Obligations;
  Servicing of Contracts
  	   
  	  22
  
	  Section 3.08.
  	   
  	  Negative Covenants
  	   
  	  23
  
	  Section 3.09.
  	   
  	  Annual Statement as to
  Compliance
  	   
  	  23
  
	  Section 3.10.
  	   
  	  Issuer May Consolidate, etc.
  Only on Certain Terms
  	   
  	  24
  
	  Section 3.11.
  	   
  	  Successor or Transferee
  	   
  	  25
  
	  Section 3.12.
  	   
  	  No Other Business
  	   
  	  26
  
	  Section 3.13.
  	   
  	  No Borrowing
  	   
  	  26
  
	  Section 3.14.
  	   
  	  Servicer’s Obligations
  	   
  	  26
  
	  Section 3.15.
  	   
  	  Guarantees, Loans Advances and
  Other Liabilities
  	   
  	  26
  
	  Section 3.16.
  	   
  	  Capital Expenditures
  	   
  	  26
  
	  Section 3.17.
  	   
  	  Restricted Payments
  	   
  	  26
  
	  Section 3.18.
  	   
  	  Notice of Events of Default
  	   
  	  27
  
	  Section 3.19.
  	   
  	  Further Instruments and Acts
  	   
  	  27
  
	  Section 3.20.
  	   
  	  Compliance with Laws
  	   
  	  27
  

 ii
 

     
  	  Section 3.21.
  	   
  	  Amendments of Sale and
  Servicing Agreement and Trust Agreement
  	   
  	  27
  
	  Section 3.22.
  	   
  	  Removal of Administrator
  	   
  	  27
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE FOUR SATISFACTION
  AND DISCHARGE
  	   
  	  27
  
	   
  	   
  	   
  
	  Section 4.01.
  	   
  	  Satisfaction and Discharge of
  Indenture
  	   
  	  27
  
	  Section 4.02.
  	   
  	  Application of Trust Money
  	   
  	  28
  
	  Section 4.03.
  	   
  	  Repayment of Moneys Held by
  Paying Agent
  	   
  	  29
  
	  Section 4.04.
  	   
  	  Release of Collateral
  	   
  	  29
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE FIVE REMEDIES
  	   
  	  29
  
	   
  	   
  	   
  
	  Section 5.01.
  	   
  	  Events of Default
  	   
  	  29
  
	  Section 5.02.
  	   
  	  Rights Upon Event of Default
  	   
  	  30
  
	  Section 5.03.
  	   
  	  Collection of Indebtedness and
  Suits for Enforcement by Indenture Trustee; Authority of Indenture Trustee
  	   
  	  30
  
	  Section 5.04.
  	   
  	  Remedies
  	   
  	  33
  
	  Section 5.05.
  	   
  	  Optional Preservation of the
  Contracts
  	   
  	  33
  
	  Section 5.06.
  	   
  	  Priorities
  	   
  	  34
  
	  Section 5.07.
  	   
  	  Limitation of Suits
  	   
  	  34
  
	  Section 5.08.
  	   
  	  Unconditional Rights of
  Noteholders to Receive Principal and Interest
  	   
  	  35
  
	  Section 5.09.
  	   
  	  Restoration of Rights and
  Remedies
  	   
  	  35
  
	  Section 5.10.
  	   
  	  Rights and Remedies Cumulative
  	   
  	  35
  
	  Section 5.11.
  	   
  	  Delay or Omission Not a Waiver
  	   
  	  35
  
	  Section 5.12.
  	   
  	  Control by Noteholders
  	   
  	  35
  
	  Section 5.13.
  	   
  	  Waiver of Past Defaults
  	   
  	  36
  
	  Section 5.14.
  	   
  	  Undertaking for Costs
  	   
  	  36
  
	  Section 5.15.
  	   
  	  Waiver of Stay or Extension
  Laws
  	   
  	  36
  
	  Section 5.16.
  	   
  	  Action on Notes
  	   
  	  37
  
	  Section 5.17.
  	   
  	  Performance and Enforcement of
  Certain Obligations
  	   
  	  37
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE SIX THE INDENTURE
  TRUSTEE
  	   
  	  37
  
	   
  	   
  	   
  
	  Section 6.01.
  	   
  	  Duties of Indenture Trustee
  	   
  	  37
  
	  Section 6.02.
  	   
  	  Rights of Indenture Trustee
  	   
  	  39
  
	  Section 6.03.
  	   
  	  Individual Rights of Indenture
  Trustee
  	   
  	  40
  
	  Section 6.04.
  	   
  	  Indenture Trustee’s Disclaimer
  	   
  	  40
  
	  Section 6.05.
  	   
  	  Notice of Defaults
  	   
  	  40
  
	  Section 6.06.
  	   
  	  Reports by Indenture Trustee to
  Holders
  	   
  	  40
  
	  Section 6.07.
  	   
  	  Compensation and Indemnity
  	   
  	  40
  
	  Section 6.08.
  	   
  	  Replacement of Indenture
  Trustee
  	   
  	  41
  
	  Section 6.09.
  	   
  	  Successor Indenture Trustee by
  Merger
  	   
  	  42
  
	  Section 6.10.
  	   
  	  Appointment of Co-Indenture
  Trustee or Separate Indenture Trustee
  	   
  	  43
  
	  Section 6.11.
  	   
  	  Eligibility
  	   
  	  44
  
	  Section 6.12.
  	   
  	  Pennsylvania Motor Vehicle
  Sales Finance Act Licenses
  	   
  	  45
  
	  Section 6.13.
  	   
  	  Preferential Collection of
  Claims Against Issuer
  	   
  	  45
  
	  Section 6.14.
  	   
  	  Representations and Warranties
  of Indenture Trustee
  	   
  	  45
  

 iii
 

     
  	  ARTICLE SEVEN NOTEHOLDERS’ LISTS AND REPORTS
  	   
  	  46
  
	   
  	   
  	   
  
	  Section 7.01.
  	   
  	  Issuer to Furnish Indenture
  Trustee Names and Addresses of Noteholders
  	   
  	  46
  
	  Section 7.02.
  	   
  	  Preservation of Information:
  Communication to Noteholders
  	   
  	  46
  
	  Section 7.03.
  	   
  	  Reports by Issuer
  	   
  	  47
  
	  Section 7.04.
  	   
  	  Reports by Indenture Trustee
  	   
  	  47
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE EIGHT ACCOUNTS,
  DISBURSEMENTS AND RELEASES
  	   
  	  48
  
	   
  	   
  	   
  
	  Section 8.01.
  	   
  	  Collection of Money
  	   
  	  48
  
	  Section 8.02.
  	   
  	  Trust Accounts
  	   
  	  48
  
	  Section 8.03.
  	   
  	  General Provisions Regarding
  Accounts
  	   
  	  48
  
	  Section 8.04.
  	   
  	  Release of Collateral
  	   
  	  49
  
	  Section 8.05.
  	   
  	  Opinion of Counsel
  	   
  	  49
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE NINE SUPPLEMENTAL
  INDENTURES
  	   
  	  50
  
	   
  	   
  	   
  
	  Section 9.01.
  	   
  	  Supplemental Indentures Without
  Consent of Noteholders
  	   
  	  50
  
	  Section 9.02.
  	   
  	  Supplemental Indentures With
  Consent of Noteholders
  	   
  	  51
  
	  Section 9.03.
  	   
  	  Execution of Supplemental
  Indentures
  	   
  	  52
  
	  Section 9.04.
  	   
  	  Effect of Supplemental
  Indenture
  	   
  	  53
  
	  Section 9.05.
  	   
  	  Conformity With Trust Indenture
  Act
  	   
  	  53
  
	  Section 9.06.
  	   
  	  Reference in Notes to Supplemental
  Indentures
  	   
  	  53
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE TEN REDEMPTION OF
  NOTES
  	   
  	  53
  
	   
  	   
  	   
  
	  Section 10.01.
  	   
  	  Redemption
  	   
  	  53
  
	  Section 10.02.
  	   
  	  Form of Redemption Notice
  	   
  	  54
  
	  Section 10.03.
  	   
  	  Notes Payable on Redemption
  Date
  	   
  	  54
  
	   
  	   
  	   
  	   
  	   
  
	  ARTICLE ELEVEN
  MISCELLANEOUS
  	   
  	  55
  
	   
  	   
  	   
  
	  Section 11.01.
  	   
  	  Compliance Certificates and
  Opinions, etc.
  	   
  	  55
  
	  Section 11.02.
  	   
  	  Form of Documents Delivered to
  Indenture Trustee
  	   
  	  57
  
	  Section 11.03.
  	   
  	  Acts of Noteholders
  	   
  	  57
  
	  Section 11.04.
  	   
  	  Notices
  	   
  	  58
  
	  Section 11.05.
  	   
  	  Notices to Noteholders; Waiver
  	   
  	  58
  
	  Section 11.06.
  	   
  	  Alternate Payment and Notice
  Provisions
  	   
  	  59
  
	  Section 11.07.
  	   
  	  Effect of Headings and Table of
  Contents
  	   
  	  59
  
	  Section 11.08.
  	   
  	  Successors and Assigns
  	   
  	  59
  
	  Section 11.09.
  	   
  	  Separability
  	   
  	  59
  
	  Section 11.10.
  	   
  	  Benefits of Indenture
  	   
  	  59
  
	  Section 11.11.
  	   
  	  Legal Holidays
  	   
  	  59
  
	  Section 11.12.
  	   
  	  Governing Law
  	   
  	  59
  
	  Section 11.13.
  	   
  	  Counterparts
  	   
  	  60
  
	  Section 11.14.
  	   
  	  Recording of Indenture
  	   
  	  60
  
	  Section 11.15.
  	   
  	  Trust Obligation
  	   
  	  60
  
	  Section 11.16.
  	   
  	  No Petition
  	   
  	  60
  
	  Section 11.17.
  	   
  	  Inspection
  	   
  	  60
  
	  Section 11.18.
  	   
  	  Conflict with Trust Indenture
  Act
  	   
  	  61
  
	  Section 11.19.
  	   
  	  Disclaimer and Subordination
  	   
  	  61
  

 iv
 

     
  	  EXHIBITS
  	   
  	  Page
  
	   
  	   
  	   
  	   
  
	  Exhibit A-1 -
  	  Form of Class A-1 Note
  	   
  	  A-1-1
  
	  Exhibit A-2 -
  	  Form of Class A-2 Note
  	   
  	  A-2-1
  
	  Exhibit A-3 -
  	  Form of Class A-3 Note
  	   
  	  A-3-1
  
	  Exhibit A-4 -
  	  Form of Class A-4 Note
  	   
  	  A-4-1
  
	  Exhibit A-5 -
  	  Form of Class B Note
  	   
  	  A-5-1
  
	  Exhibit A-6 -
  	  Form of Class C Note
  	   
  	  A-6-1
  
	  Exhibit B -
  	  Form of Assignment
  	   
  	  B-1
  
	  Exhibit C -
  	  Form of Note Depository Agreement
  	   
  	  C-1
  

   

 v

INDENTURE

Indenture,
dated as of January 15, 2007 (this “Indenture”), between Harley-Davidson
Motorcycle Trust 2007-1, a Delaware statutory trust (the “Issuer”) and The Bank
of New York Trust Company, N.A., in its capacity as indenture trustee (the “Indenture
Trustee”) and not in its individual capacity.

Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Issuer’s Notes.

GRANTING CLAUSE

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

The
foregoing Grant is made in trust to secure the payment of principal of and
interest on, and any other amounts owing in respect of, the Notes, equally and
ratably

without prejudice,
priority or distinction, except for the subordination of the Class B Notes and
Class C Notes provided herein and all other sums owing by the Issuer hereunder
or under any other Transaction Document, and to secure compliance with the
provisions of this Indenture, all as provided in this Indenture.

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

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.        Definitions.

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

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

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

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

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

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

 2
 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 3
 

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

“Class B Notes” means the Class B
Notes, substantially in the form of Exhibit A-5.

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

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

“Class C Notes” means the Class C
Notes, substantially in the form of Exhibit A-6.

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

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

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

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

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

“Commission” means the Securities
and Exchange Commission.

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

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

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

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

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

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

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

 4
 

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

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

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

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

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

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

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

 5
 

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

“Indenture Securities” means the
Notes.

“Indenture Security Holder” means
a Noteholder.

“Indenture Trustee” means The
Bank of New York Trust Company, N.A., as Indenture Trustee under this
Indenture, or any successor Indenture Trustee under this Indenture.

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

“Independent Certificate” means a
certificate or opinion to be delivered to the Indenture Trustee under the
circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.01, made by an Independent appraiser or other expert
appointed by an Issuer Order and approved by the Indenture Trustee in the
exercise of reasonable care, and such opinion or certificate shall state that
the signer has read the definition of “Independent”
in this Indenture and that the signer is Independent within the meaning
thereof.

“Interest Rate” means the Class
A-1 Rate, the Class A-2 Rate, the Class A-3 Rate, the Class A-4 Rate, the Class
B Rate and/or the Class C Rate, as applicable.

“Issuer” means Harley-Davidson
Motorcycle Trust 2007-1 until a successor replaces it and, thereafter, means
the successor and, for purposes of any provision contained herein and required
by the TIA, each other obligor on the Notes.

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

“Note” means, as the context
requires, a Class A-1 Note, a Class A-2 Note, a Class A-3 Note, a Class A-4
Note, a Class B Note or a Class C Note.

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

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

 6
 

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

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

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

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

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

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

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

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

 7
 

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

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

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

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

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

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

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

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

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

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

“Redemption Date” means
(a) in the case of a redemption of the Notes pursuant to Section 10.01(a)
or a payment to Noteholders pursuant to Section 10.01(b), the Distribution Date
specified by the Servicer or the Issuer pursuant to Section 10.01(a) or
10.01(b), as the case may be and (b) in the case of a redemption of Notes
pursuant to Section 10.01(c), the Distribution Date specified in
Section 7.07 of the Sale and Servicing Agreement on which the Indenture
Trustee shall withdraw any amount remaining in the Pre-Funding Account and
deposit the applicable amount in the Note Distribution Account.

 8
 

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

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

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

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

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

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

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

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

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

“Trust Agreement” means the Trust
Agreement, dated as of January 1, 2007, between the Trust Depositor and the
Owner Trustee.

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

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

 9
 

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

“United States” means the United
States of America.

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

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

“Commission” means the Securities
and Exchange Commission.

“indenture securities” means the
Notes.

“indenture security holder” means
a Noteholder.

“indenture to be qualified” means
this Indenture.

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

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

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

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

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

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

(iii)          “or”
is not exclusive;

(iv)          “including”
means including without limitation;

 10
 

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

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

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

ARTICLE TWO

THE NOTES

Section 2.01.        Form. The Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class
B Notes and the Class C Notes, in each case together with the Indenture Trustee’s
certificate of authentication, shall be in substantially the forms set forth as
Exhibits to this Indenture with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture
and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may, consistently herewith, be
determined by the officers executing such Notes, as evidenced by their
execution of the Notes. Any portion of the text of any Note may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the
Note.

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

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

The Indenture Trustee shall, upon receipt of an Issuer
Order, authenticate and deliver for original issue (i) Class A-1 Notes in an
aggregate principal amount of $141,000,000, (ii) Class A-2 Notes in an
aggregate principal amount of $290,000,000, (iii) Class A-3 Notes in an
aggregate principal amount of $158,000,000, (iv) Class A-4 Notes in an
aggregate principal amount of $143,000,000, (v) Class B Notes in an aggregate
principal amount of

 11
 

$48,000,000 and (vi)
Class C Notes in an aggregate principal amount of $20,000,000. The aggregate
principal amount of such Classes of Notes Outstanding at any time may not
exceed such respective amounts, except as otherwise provided in Section 2.05.

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

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

Section 2.03.        Temporary Notes. Pending
the preparation of Book-Entry Notes or Definitive Notes, the Issuer may
execute, and upon receipt of an Issuer Order the Indenture Trustee shall
authenticate and deliver, temporary Notes that are printed, lithographed,
typewritten, mimeographed or otherwise produced, of the tenor of the definitive
Notes in lieu of which they are issued and with such variations not
inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

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

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

If a Person other than the Indenture Trustee is
appointed by the Issuer as Note Registrar, the Issuer will give the Indenture
Trustee prompt written notice of the appointment of such Note Registrar and of
the location, and any change in the location, of the Note Register, and the
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times and to obtain copies thereof, and the Indenture Trustee shall
have the

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right to rely upon a
certificate executed on behalf of the Note Registrar by an Executive Officer
thereof as to the names and addresses of the Holders of the Notes and the
principal amounts and the amounts and number of such Notes.

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

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

All Notes issued upon any registration of transfer or
exchange of Notes shall be the valid obligations of the Issuer, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the Notes
surrendered upon such registration of transfer or exchange.

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

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

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

The Notes may not be purchased with the assets of a
Plan if the Issuer, the Indenture Trustee, the Owner Trustee, the Servicer or
the Underwriters or any of their affiliates has

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investment or
administrative discretion with respect to those Plan assets; has authority or
responsibility to give, or regularly gives, investment advice with respect to
those Plan assets for a fee and pursuant to an agreement or understanding that
the advice will serve as a primary basis for investment decisions with respect
to those Plan assets and will be based on the particular investment needs for
the Plan; or is an employer maintaining or contributing to the Plan.

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

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

(ii)           the
rights of Noteholders will be exercised only through the Clearing Agency and
will be limited to those established by law and agreements between such
Noteholders and the Clearing Agency and/or the Clearing Agency Participants
pursuant to the Depository Agreement;

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

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

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

Section 2.05.        Mutilated, Destroyed, Lost
or Stolen Notes. If (i) any mutilated Note is surrendered to the Indenture
Trustee, or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by them to hold
the Issuer and the Indenture Trustee harmless, then, in the absence of notice
to the Issuer, the Note Registrar or the Indenture Trustee that such Note has
been acquired by a protected purchaser, within the meaning of § 8-303 of the
UCC, the Issuer shall execute and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any

 14
 

such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class
and denomination; provided, however, that if any such destroyed, lost or stolen
Note, but not a mutilated Note, shall have become or within seven days shall be
due and payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
so due or payable or upon the Redemption Date without surrender thereof. If,
after the delivery of such replacement Note or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding sentence, a protected
purchaser, within the meaning of § 8-303 of the UCC, of the original Note
in lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer, and the Indenture Trustee shall be entitled to
recover such replacement Note (or such payment) from the Person to whom it was
delivered or any Person taking such replacement Note from such Person to whom
such replacement Note was delivered or any assignee of such Person, except a
protected purchaser, within the meaning of § 8-303 of the UCC, and shall
be entitled to recover upon the security or indemnity provided therefor to the
extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee in connection therewith.

Upon the issuance of any replacement Note under this
Section, the Issuer or the Indenture Trustee may require the payment by the
Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other reasonable
expenses (including the fees and expenses of the Indenture Trustee or the Note
Registrar) connected therewith.

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

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

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

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

(a)           Each Class of Notes shall accrue interest at
the related Interest Rate, and such interest shall be payable on each
Distribution Date as specified therein, subject to Section 3.01. Any
installment of interest or principal, if any, payable on any Note which is
punctually paid or duly provided for by the Issuer on the applicable
Distribution Date shall

 15
 

be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date, by wire transfer in
immediately available funds to the account designated by such nominee and
except for the final installment of principal payable with respect to such Note
on a Distribution Date or on the related Final Distribution Date, as the case
may be (and except for the Redemption Price for any Note called for redemption
pursuant to Section 10.01(a)), which shall be payable as provided below. The
funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.03.

(b)           The principal of each Note shall be payable
on each Distribution Date to the extent provided in the form of the related
Note set forth as an Exhibit hereto. Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable, if not
previously paid, on the date on which the maturity of the Notes has been
accelerated in the manner provided in Section 5.02. All principal payments on
each Class of Notes shall be made pro rata to the Noteholders of such Class
entitled thereto. The Indenture Trustee shall notify the Person in whose name a
Note is registered at the close of business on the Record Date preceding the
Distribution Date on which the Issuer expects that the final installment of
principal of and interest on such Note will be paid. Such notice shall be
mailed within five Business Days of receipt of notice of termination of the
Trust pursuant to Section 9.01(c) of the Trust Agreement and shall specify that
such final installment will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section
10.02.

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

Section 2.08.        Cancellation. All
Notes surrendered for payment, registration of transfer, exchange or redemption
shall, if surrendered to any Person other than the Indenture Trustee, be
delivered to the Indenture Trustee and shall be promptly cancelled by the
Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee
for cancellation any Notes previously authenticated and delivered hereunder
which the Issuer may have acquired in any manner whatsoever, and all Notes so
delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall
be authenticated in lieu of or in exchange for any Notes cancelled as provided
in this Section, except as expressly permitted by this Indenture. All cancelled
Notes may be held or disposed of by the Indenture Trustee in accordance with
its standard retention or disposal policy as in effect at the time unless the
Issuer shall direct by an Issuer Order that they be destroyed or returned to
it; provided that

 16

such Issuer Order is timely and the Notes have not been previously
disposed of by the Indenture Trustee.

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

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

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

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

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

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

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

Section 2.11.        Definitive Notes. If
(i)(A) the Administrator advises the Indenture Trustee in writing that the
Clearing Agency is no longer willing or able to properly discharge its
responsibilities as described in the Note Depository Agreement, and

 17
 

(B) Indenture Trustee or the Administrator is unable to locate a
qualified successor, (ii) the Administrator or the Owner Trustee, as
applicable, notifies the Clearing Agency of its intent to terminate the
book-entry system through the Clearing Agency and requests a withdrawal of the
Book-Entry Notes held by the Clearing Agency, and after receipt by the Clearing
Agency Participants of an important notice issued by the Clearing Agency
notifying the Clearing Agency Participants of such withdrawal request, the
Clearing Agency Participants holding beneficial interests in the Book-Entry
Notes agree to initiate such termination, or (iii) after the occurrence of an
Event of Default, the Modified Required Holders advise the Indenture Trustee and
the Clearing Agency through the Clearing Agency Participants in writing that
the continuation of a book-entry system through the Clearing Agency is no
longer in the best interests of the related Noteholders, then the Indenture
Trustee shall notify all Noteholders of the related Class or Classes of Notes,
through the Clearing Agency, of the occurrence of any such event and of the
availability of Definitive Notes of the related Class of Notes to Noteholders
requesting the same. Upon surrender to the Indenture Trustee of the Note or
Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by
registration instructions, the Issuer shall execute and the Indenture Trustee
shall authenticate the Definitive Notes in accordance with the instructions of
the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture
Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions. Upon
the issuance of Definitive Notes of a Class, the Indenture Trustee shall
recognize the Noteholders of the Definitive Notes as Noteholders hereunder.

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

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

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

 18
 

ARTICLE
THREE

COVENANTS

Section 3.01.        Payment of Principal and
Interest. The Issuer will duly and punctually pay the principal of and
interest, if any, on the Notes in accordance with the terms of the Notes and
this Indenture. Without limiting the foregoing, subject to Section 8.02(c), the
Issuer and the Indenture Trustee will cause to be deposited into the Note
Distribution Account amounts allocated pursuant to Section 7.05 of the Sale and
Servicing Agreement, and cause to be distributed all such amounts on a
Distribution Date as deposited therein (i) for the benefit of the Class A-1
Notes, to the Class A-1 Noteholders, (ii) for the benefit of the Class A-2
Notes, to the Class A-2 Noteholders, (iii) for the benefit of the Class A-3
Notes, to the Class A-3 Noteholders, (iv) for the benefit of the Class A-4
Notes, to the Class A-4 Noteholders, (v) for the benefit of the Class B Notes,
to the Class B Noteholders and (vi) for the benefit of the Class C Notes, to
the Class C Noteholders, in each case as further specified herein. Amounts
properly withheld under the Code by any Person from a payment to any Noteholder
of interest and/or principal shall be considered as having been paid by the
Issuer to such Noteholder for all purposes of this Indenture.

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

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

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

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

 19
 

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

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

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

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

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

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

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

 20
 

Issuer. The Indenture
Trustee may also adopt and employ, at the expense of the Issuer, any other
reasonable means of notification of such repayment (including, but not limited
to, mailing notice of such repayment to Holders whose Notes have been called
but not have not been surrendered for redemption or whose right to or interest
in moneys due and payable but not claimed is determinable from the records of
the Indenture Trustee or of any Paying Agent, at the last address of record for
each such Holder).

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

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

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

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

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

(iv)          enforce any of the
Collateral;

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

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

The Issuer shall file the
initial financing statements on Form UCC1. All financing statements filed or to
be filed against the Issuer in favor of the Indenture Trustee in connection
herewith describing the Collateral shall contain a statement to the following
effect: “A purchase of or security interest in any collateral described in this
financing statement, except as permitted in the Indenture, will violate the
rights of the Secured Party.”

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The Issuer hereby authorizes the Indenture Trustee to
file all continuation statements or other instruments required to be executed
pursuant to this Section and hereby designates the Indenture Trustee its agent
and attorney-in-fact for such purpose; provided, however, that the Indenture
Trustee shall have no obligation to monitor or file any financing statements,
continuation statements, financing statement amendments or any other
instrument.

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

Section 3.07.        Performance of
Obligations; Servicing of Contracts.

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

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

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

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

 22
 

Agencies of such appointment, specifying in such notice the name and
address of such Successor Servicer.

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

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

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

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

(iii)          (A) permit the validity or effectiveness of
this Indenture to be impaired, or permit the lien created by this Indenture to
be amended, hypothecated, subordinated, terminated or discharged, or permit any
Person to be released from any covenant; or obligations with respect to the
Notes under this Indenture except as may be expressly permitted hereby, (B)
permit any lien, charge, excise, claim, security interest, mortgage or other
encumbrance (other than the lien of this Indenture) to be created on or extend
to or otherwise arise upon or burden the Collateral or any part thereof or any
interest therein or the proceeds thereof (other than tax liens, mechanics’ liens
and other liens that arise by operation of law, in each case on a Motorcycle
and arising solely as a result of an action or omission of the related
Obligor), (C) permit the lien created by this Indenture not to constitute a
valid first priority (other than with respect to any such tax, mechanics’ or
other lien) security interest in the Collateral, or (D) amend, modify or fail
to comply with the provisions of the Transaction Documents without the prior
written consent of the Indenture Trustee, except where the Transaction
Documents allow for amendment or modification without the consent or approval
of the Indenture Trustee;

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

(v)           change
its name or state of formation.

Section 3.09.        Annual Statement as to Compliance.
The Issuer will deliver to the Indenture Trustee, on or before January 31
of each year commencing January 31, 2008, an Officer’s Certificate stating, as
to the Authorized Officer signing such Officer’s Certificate, that:

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

 23
 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Section 3.11.        Successor or Transferee.

(a)           Upon any consolidation or merger of the
Issuer in accordance with Section 3.10(a), the Person formed by or surviving
such consolidation or merger (if other than the Issuer) shall succeed to, and
be substituted for, and may exercise every right and power of,

 25
 

the Issuer under this Indenture with same effect as if such Person has
been named as the Issuer herein.

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

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

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

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

Section 3.15.        Guarantees, Loans Advances
and Other Liabilities. Except as otherwise contemplated by the Transaction
Documents, the Issuer shall not make any loan or advance or credit to, or
guarantee (directly or indirectly or by an instrument having the effect of
assuming another’s payment or performance on any obligation or capability of so
doing or otherwise), endorse or otherwise become contingently liable, directly
or indirectly, in connection with the obligations, stocks or dividends of, or
own, purchase, repurchase or acquire (or agree contingently to do so) any
stock, obligations, assets or securities of, any other interest in, or make any
capital contribution to, any other Person.

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

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

 26
 

Servicing Agreement or the Trust Agreement and (B) payments to the
Indenture Trustee and the Owner Trustee pursuant to Section 1(a)(ii) of the
Administration Agreement. The Issuer will not, directly or indirectly, make
payments to or distributions from the Collection Account except in accordance
with this Indenture and the other Transaction Documents.

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

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

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

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

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

ARTICLE
FOUR

SATISFACTION AND DISCHARGE

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

 27
 

(A)          either

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

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

(i)            have become due and
payable, or

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

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

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

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

Section 4.02.        Application of Trust Money.
All moneys deposited with the Indenture Trustee pursuant to Section 4.01
shall be held in trust and applied by it, in accordance with the provisions of
the Notes and this Indenture, to the payment, either directly or through any
Paying Agent, as the Indenture Trustee may determine, to the Holders of the
particular Notes for the payment or redemption of which such moneys have been
deposited with the Indenture Trustee, of all sums due and to become due thereon
for principal and interest; but

 28
 

such moneys need not be segregated from other funds except to the
extent required herein or in the Sale and Servicing Agreement or required by
law.

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

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

ARTICLE
FIVE

REMEDIES

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

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

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

(iii)          default in the observance or performance of
any covenant or agreement of the Issuer made in this Indenture (other than a
covenant or agreement, a default in the observance or performance of which is
elsewhere in this Section specifically dealt with) which default has a material
adverse effect on the Noteholders, or any representation or warranty of the
Issuer made in this Indenture or in any certificate or other writing delivered
pursuant hereto or in connection herewith proving to have been incorrect in any
material respect as of the time when the same shall have been made, and such
default shall continue or not be cured, or the circumstance or condition in
respect of which such misrepresentation or warranty was incorrect shall not
have been eliminated or otherwise cured, for a period of 30 days after there
shall have been given, by registered or certified

 29
 

mail, to the Issuer by
the Indenture Trustee or by the Holders of at least 25% of the Outstanding
Amount of the Controlling Class a written notice specifying such default or
incorrect representation or warranty and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder;

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

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

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

Section 5.02.        Rights Upon Event of
Default. If an Event of Default shall have occurred and be continuing,
other than an Event of Default described in Section 5.01(iv) or (v) above, the
Indenture Trustee or the Modified Required Holders may declare the principal
amount of the Notes immediately due and payable at par. At any time after such
declaration of acceleration of maturity has been made and before a judgment or
decree for payment of the money due has been obtained by the Indenture Trustee
as hereinafter in this Article Five, provided,
the Required Holders may rescind such declaration if (i) the Issuer has made
all payments of principal of and interest on all Notes when the same becomes
due and payable and (ii) the Issuer has paid all amounts due and payable to the
Indenture Trustee. If an Event of Default described in Section 5.01(iv) or (v)
shall have occurred and be continuing, the principal amount of the Notes shall
become immediately due and payable.

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

(a)           The Issuer covenants that if the Notes are
accelerated following the occurrence of an Event of Default, the Issuer will,
upon demand of the Indenture Trustee, pay to it, for the benefit of the Holders
of the Notes, the whole amount then due and payable

 30
 

on such Notes for principal and interest, with interest upon the
overdue principal, and, to the extent payment at such rate of interest shall be
legally enforceable, upon overdue installments of interest, at the applicable
Interest Rate and in addition thereto such further amount as shall be
sufficient to cover costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel.

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

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

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

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

 31
 

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

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

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

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

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

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

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

 32

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

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

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

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

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

(iv)          sell
the Collateral or any portion thereof or rights or interest therein, at one or
more public or private sales called and conducted in any manner permitted by
law; provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Collateral following an Event of Default, unless (A) the Holders
of 100% of the Outstanding Amount of the Notes, consent thereto, (B) the
proceeds of such sale or liquidation distributable to the Noteholders are
sufficient to discharge in full all amounts then due and unpaid upon such Notes
for principal and interest or (C) there has been an Event of Default described
in Section 5.01(i) or (ii) and the Indenture Trustee determines that the
Collateral will not continue to provide sufficient funds for the payment of
principal of and interest on the Notes as they would have become due if the
Notes had not been declared due and payable, and the Indenture Trustee provides
prior written notice to each Rating Agency and obtains the consent of the
Required Holders. In determining such sufficiency or insufficiency with respect
to clauses (B) and (C), the Indenture Trustee may, but need not, obtain and
rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such purpose.

Section 5.05.        Optional Preservation of
the Contracts. Following an Event of Default and if such Event of Default
has not been rescinded and annulled, the Indenture Trustee may, but need not,
elect to maintain possession of the Collateral. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the
payment of principal and interest on the Notes, and the Indenture Trustee shall
take such desire into account when determining whether or not to maintain
possession of the Collateral. In determining whether to maintain possession of
the Collateral, the Indenture

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Trustee may,
but need not, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Collateral for such purpose.

Section 5.06.        Priorities.

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

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

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

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

(ii)           the Holders of not less
than 25% of the Outstanding Amount of the Controlling Class have made written
request to the Indenture Trustee to institute such Proceeding in respect of
such Event of Default in its own name as Indenture Trustee hereunder;

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

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

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

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

In the event the Indenture Trustee shall receive
conflicting or inconsistent requests and indemnity from two or more groups of
Holders of Notes of the Controlling Class, each representing less than a
majority of the Outstanding Amount of the Controlling Class, the

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Indenture Trustee in its
sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

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

Section 5.09.        Restoration of Rights and
Remedies. If the Indenture Trustee or any Noteholder has instituted any
Proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason or has been determined
adversely to the Indenture Trustee or to such Noteholder, then and in every
such case the Indenture Trustee and the Noteholders shall, subject to any
determination in such Proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

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

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

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

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

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

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

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

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

Section 5.13.        Waiver of Past Defaults. In
the case of any waiver of an Event of Default, the Issuer, the Indenture
Trustee and the Holders of the Notes shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend
to any subsequent or other Event of Default or impair any right consequent thereto.
Upon any such waiver, such Event of Default shall cease to exist and be deemed
to have been cured and not to have occurred, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereto.

Section 5.14.        Undertaking for Costs. All
parties to this Indenture agree, and each Holder of any Note by such Holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Indenture Trustee for any
action taken, suffered or omitted by it as Indenture Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to (i) any
suit instituted by the Indenture Trustee, (ii) any suit instituted by any
Noteholder, or group of Noteholders, in each case holding in the aggregate more
than 10% of the Outstanding Amount of the Controlling Class or (iii) any suit
instituted by any Noteholder for the enforcement of the payment of principal of
or interest on any Note on or after the respective due dates expressed in such
Note and in this Indenture (or, in the case of redemption, on or after the
Redemption Date).

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

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

Section 5.17.        Performance and
Enforcement of Certain Obligations.

(a)           Promptly following a request from the
Indenture Trustee to do so and at the Administrator’s expense, the Issuer shall
take all such lawful action as the Indenture Trustee may request to compel or
secure the performance and observance by the Trust Depositor and the Servicer,
as applicable, of each of their obligations to the Issuer under or in
connection with the Sale and Servicing Agreement in accordance with the terms
thereof, and to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Sale and Servicing
Agreement to the extent and in the manner directed by the Indenture Trustee,
including the transmission of notices of default on the part of the Trust
Depositor or the Servicer thereunder and the institution of legal of
administrative actions or proceedings to compel or secure performance by the
Trust Depositor or the Servicer of each of their obligations under the Sale and
Servicing Agreement.

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

ARTICLE
SIX

THE INDENTURE TRUSTEE

Section 6.01.        Duties of Indenture
Trustee.

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

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

 37
 

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

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

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

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

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

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

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

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

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

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

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

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

Section 6.02.        Rights of Indenture
Trustee.

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

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

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

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

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

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

(g)           The Indenture Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper or document, unless so requested by the
Holders of Notes evidencing not less than 25% of the Outstanding Amount of the
Notes; provided, however, that if the payment within a reasonable time to the
Indenture Trustee of the costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion of the Indenture
Trustee, not reasonably

 39
 

assured to the Indenture Trustee by the security afforded to it by the
terms of this Indenture or the Sale and Servicing Agreement, the Indenture
Trustee may require reasonable indemnity against such cost, expense or
liability as a condition to so proceeding; the reasonable expense of every such
examination shall be paid by the Person making such request, or, if paid by the
Indenture Trustee, shall be reimbursed by the Person making such request upon
demand.

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

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

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

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

Section 6.07.        Compensation and Indemnity.
The Issuer shall pay or shall cause the Administrator to pay to the
Indenture Trustee from time to time reasonable compensation for its services. The
Indenture Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Issuer shall or shall cause
the Administrator to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection,
in addition to the compensation for its services. Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee’s agents, counsel, accountants and experts. The Issuer shall
indemnify or shall cause the Administrator to indemnify the Indenture Trustee
against any and all loss, liability or expense (including attorneys’ fees)
incurred by it in connection with the administration of this trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Issuer and the Administrator

 40
 

promptly of any claim for which it may seek indemnity. Failure by the
Indenture Trustee to so notify the Issuer and the Administrator shall not
relieve the Issuer or the Administrator of its obligations hereunder. The
Issuer shall defend or shall cause the Administrator to defend any such claim,
and the Indenture Trustee may have separate counsel and the Issuer shall pay or
shall cause the Administrator to pay the fees and expenses of such counsel. Neither
the Issuer nor the Administrator need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Indenture Trustee
through the Indenture Trustee’s own willful misconduct, negligence or bad
faith.

The Issuer’s payment obligations and indemnification
to the Indenture Trustee pursuant to this Section shall survive the resignation
or removal of the Indenture Trustee and the termination and discharge of this
Indenture; provided that the Indenture Trustee shall be entitled only to
compensation for its services for the period prior to the date of such
resignation or removal of the Indenture Trustee. When the Indenture Trustee
incurs expenses after the occurrence of an Event of Default specified in
Section 5.01(iv) or (v) with respect to the Issuer, the expenses are intended
to constitute expenses of administration under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or similar
law.

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

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

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

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

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

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

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

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

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

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

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

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

(a)           Notwithstanding any other provision of this
Indenture, at any time, for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the Collateral may at the time be located,
the Indenture Trustee and the Administrator acting jointly shall have the power
and may execute and deliver all instruments to appoint one or more Persons to
act as a co-Indenture Trustee or co-Indenture Trustees, jointly with the
Indenture Trustee, or separate Indenture Trustee or separate Indenture
Trustees, of all or any part of the Trust, and to vest in such Person or
Persons, in such capacity and for the benefit of the Noteholders, such title to
the Collateral, or any part hereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Indenture Trustee and the Administrator may consider necessary or desirable. If
the Administrator shall not have joined in such appointment within 15 days
after the receipt by it of a request so to do, the Indenture Trustee alone
shall have the power to make such appointment. No co-Indenture Trustee or
separate Indenture Trustee hereunder shall be required to meet the terms of
eligibility of a successor Indenture Trustee under Section 6.11 and no notice
to Noteholders of the appointment of any co-Indenture Trustee or separate
Indenture Trustee shall be required under Section 6.08.

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

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

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

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

(c)           Any notice, request or other writing given
to the Indenture Trustee shall be deemed to have been given to each of the then
separate Indenture Trustees and co-Indenture Trustees, as effectively as if
given to each of them. Every instrument appointing any separate Indenture
Trustee or co-Indenture Trustee shall refer to this Indenture and the
conditions of this Article. Each separate Indenture Trustee and co-Indenture
Trustee, upon its acceptance of the trusts conferred, shall be vested with the
estates or property specified in its instrument of co-appointment, either
jointly with the Indenture Trustee or separately, as

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may be provided therein, subject to all the provisions of this
Indenture, specifically including every provision of this Indenture relating to
the conduct of, affecting the liability of or affording protection to, the
Indenture Trustee. Every such instrument shall be filed with the Indenture
Trustee and a copy thereof given to the Administrator.

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

Section 6.11.        Eligibility.

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

(b)           If a Default occurs and is continuing and
the Indenture Trustee is deemed to have a “conflicting interest” (as defined in
the TIA) as a result of acting as trustee for the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, the Class B Notes and
the Class C Notes, the Issuer shall appoint a successor Indenture Trustee for
the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes, a successor Indenture Trustee for the Class B Notes and a successor
Indenture Trustee for the Class C Notes so that there will be separate
Indenture Trustees for the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, for the Class B Notes and for the Class C Notes.
No such event shall alter the voting rights of the Noteholders under this
Indenture or under any of the other Transaction Documents.

(c)           In the case of an appointment hereunder of a
successor Indenture Trustee with respect to any Class of Notes, the Issuer, the
retiring Indenture Trustee and the successor Indenture Trustee with respect to
such Class of Notes shall execute and deliver an indenture supplement hereto
wherein the successor Indenture Trustee shall accept such appointment and which
(i) shall contain such provisions as shall be necessary or desirable to

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

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

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

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

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

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

(b)           Authorization; Binding Obligations. It has the corporate power and authority to
perform the duties and obligations of Trustee under this Indenture. It has
taken all necessary corporate action to authorize the execution, delivery and
performance of each Transaction Document to which it is a party, and all of the
documents required to be executed by it pursuant hereto. Upon execution and
delivery by the Issuer, this Indenture will constitute the legal, valid and
binding obligation of it enforceable against it in

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accordance
with its terms, subject to applicable bankruptcy, reorganization, insolvency,
fraudulent conveyance, moratorium, and similar laws affecting the rights of
creditors and subject to equitable principles (whether enforcement is sought in
a legal or equitable proceeding).

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

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

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

ARTICLE
SEVEN

NOTEHOLDERS’ LISTS AND REPORTS

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

Section 7.02.        Preservation of
Information: Communication to Noteholders.

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

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

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

Section 7.03.        Reports by Issuer.

(a)           The Issuer shall:

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

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

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

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

Section 7.04.        Reports by Indenture
Trustee. If required by TIA §313(a), within 60 days after each January 31st beginning with January 31, 2008, the Indenture
Trustee shall mail to each Noteholder as required by TIA §313(c) a brief report
dated as of such date that complies with TIA §313(a). The Indenture Trustee
also shall comply with TIA §313(b).

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

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ARTICLE
EIGHT

ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01.        Collection of Money. Except
as otherwise expressly provided herein, the Indenture Trustee may demand payment
or delivery of, and shall receive and collect, directly and without
intervention or assistance of any fiscal agent or other intermediary, all money
and other property payable to or receivable by the Indenture Trustee pursuant
to this Indenture and the Sale and Servicing Agreement. The Indenture Trustee
shall apply all such money received by it as provided in this Indenture and the
Sale and Servicing Agreement. Except as otherwise expressly provided in this
Indenture, if any default occurs in the making of any payment or performance
under any agreement or instrument that is part of the Collateral, the Indenture
Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim a
Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article Five.

Section 8.02.        Trust Accounts.

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

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

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

Section 8.03.        General Provisions
Regarding Accounts.

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

 48

to make any such investment or sale, if requested by the Indenture
Trustee, the Issuer shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect.

(b)           Subject to Section 6.01(c), the Indenture
Trustee shall not in any way be held liable by reason of any insufficiency in
any of the Trust Accounts resulting from any loss on any Eligible Investment
included therein except for losses attributable to the Indenture Trustee’s
failure to make payments on such Eligible Investments issued by the Indenture
Trustee, in its commercial capacity as principal obligor and not as Indenture
Trustee, in accordance with their terms.

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

Section 8.04.        Release of Collateral.

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

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

Section 8.05.        Opinion of Counsel. The
Indenture Trustee shall receive at least seven days notice when requested by
the Issuer to take any action pursuant to Section 8.04(a), accompanied by
copies of any instruments involved, and the Indenture Trustee shall

 49
 

also require, as a condition to such action, an Opinion of Counsel, in
form and substance satisfactory to the Indenture Trustee, stating the legal
effect of any such action, outlining the steps required to complete the same,
and concluding that all conditions precedent to the taking of such action have
been complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the
provisions for this Indenture; provided, however, that such Opinion of Counsel
shall not be required to express an opinion as to the fair value of the
Collateral. Counsel rendering any such opinion may rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

ARTICLE
NINE

SUPPLEMENTAL INDENTURES

Section 9.01.        Supplemental Indentures
Without Consent of Noteholders.

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

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

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

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

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

(v)           to cure any ambiguity,
to correct or supplement any provision herein or in any supplemental indenture
which may be inconsistent with any other provision herein, in any supplemental
indenture, in the Transaction Documents or in the Prospectus or to add any
other provisions with respect to matters or questions arising under this
Indenture, in any supplemental indenture, in the Transaction

 50
 

Documents or in
the Prospectus; provided that such action shall not adversely affect the
interests of the Holders of the Notes;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 52
 

obligated to, enter into any such supplemental indenture that affects
the Indenture Trustee’s own rights, duties, liabilities or immunities under
this Indenture or otherwise.

Section 9.04.        Effect of Supplemental
Indenture. Upon the execution of any supplemental indenture pursuant to the
provisions hereof, this Indenture shall be and be deemed to be modified and
amended in accordance therewith with respect to the Notes affected thereby, and
the respective rights, limitations of rights, obligations, duties, liabilities
and immunities under this Indenture of the parties hereto and the Holders of
the Notes shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

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

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

ARTICLE
TEN

REDEMPTION OF NOTES

Section 10.01.      Redemption.

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

 53
 

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

(c)           If (x) the Pre-Funded Amount has not been
reduced to zero on the Distribution Date on which the Funding Period ends (or,
if the Funding Period does not end on a Distribution Date, on the first
Distribution Date following the end of the Funding Period) or (y) the
Pre-Funded Amount has been reduced to $150,000 or less on any Distribution
Date, in either case after giving effect to any reductions in the Pre-Funded
Amount on such Distribution Date pursuant to Section 7.07 of the Sale and
Servicing Agreement, one or more classes of Notes then outstanding will be
redeemed, in whole or in part, as described in Section 7.07(c) of the Sale
and Servicing Agreement, in a principal amount described therein.

Section 10.02.      Form of Redemption Notice.

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

All notices of redemption shall state:

(i)            the Redemption Date;

(ii)           the Redemption Date
Amount; and

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

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

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

Section 10.03.      Notes Payable on Redemption
Date. The Notes or portions thereof to be redeemed shall, following notice
of redemption (if any) as required by Section 10.02, on the Redemption Date
become due and payable at the Redemption Date Amount and (unless the Issuer
shall default in the payment of the Redemption Date Amount) no interest shall

 54
 

accrue on the Redemption Date Amount for any period after the date to
which accrued interest is calculated for purposes of calculating the Redemption
Date Amount.

ARTICLE
ELEVEN

MISCELLANEOUS

Section 11.01.      Compliance Certificates and
Opinions, etc.

(a)           Upon any application or request by the
Issuer to the Indenture Trustee to take any action under any provision of this
Indenture, the Issuer shall furnish to the Indenture Trustee (i) an Officer’s
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with, (ii) an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, and (iii) (if required
by the TIA as so stated in the Opinion of Counsel) an Independent Certificate
from a firm of certified public accountants meeting the applicable requirements
of this Section and TIA §314(c), except that, in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished. No additional certificate or opinion
need be furnished.

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

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

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

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

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

(b)           (i)            Prior
to the deposit of any Collateral or other property or securities with the
Indenture Trustee that is to be made the basis for authentication and delivery
of the Notes or the release of any property subject to the lien created by this
Indenture, the Issuer shall, in addition to any obligation imposed in Section
11.01(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the

 55
 

opinion of the signer thereof as to the fair value (within 90 days of
such deposit) of the Collateral or other property or securities to be so
deposited.

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

(iii)          Other than with respect
to any release described in clause (A) or (B) of Section 11.01(b)(v), whenever
any property or securities are to be released from the lien created by this
Indenture, the Issuer shall also furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days of such release) of the
property or securities proposed to be released and stating that in the opinion
of such person the proposed release will not impair the security created by
this Indenture in contravention of the provisions hereof.

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

(v)           Notwithstanding any
other provision of this Section, the Issuer may, without compliance with the
other provisions of this Section, (A) collect, liquidate, sell or otherwise
dispose of the Contracts as and to the extent permitted or required by the
Transaction Documents, and (B) make cash payments out of the Trust Accounts as
and to the extent permitted or required by the Transaction Documents, so long
as the Issuer shall deliver to the Indenture Trustee every six months,
commencing June 1, 2007, an Officer’s Certificate stating that all the
dispositions of Collateral described in clauses (A) or (B) that occurred during
the preceding six calendar months were in the ordinary course of the Issuer’s
business and that the proceeds thereof were applied in accordance with the
Transaction Documents.

 56
 

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

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

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

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

Section 11.03.      Acts of Noteholders.

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

 57
 

to Section 6.01) conclusive in favor of the Indenture Trustee and the
Issuer, if made in the manner provided in this Section.

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

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

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

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

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

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

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

 58
 

Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee
shall be deemed to be a sufficient giving of such notice.

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

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

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

Section 11.08.      Successors and Assigns. All
covenants and agreements in this Indenture and the Notes by the Issuer shall
bind its successors and assigns, whether so expressed or not. All agreements of
the Indenture Trustee in this Indenture shall bind its successors, co-Indenture
Trustees and agents.

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

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

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

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

 59
 

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

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

Section 11.15.      Trust Obligation. No
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
Indenture or any certificate or other writing delivered in connection herewith
or therewith, against (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficiary interest in the Issuer or (iii)
any partner, owner, beneficiary, agent, officer, director, employee or agent of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity. For all purposes of this Indenture, in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Article Six, Seven and
Eight of the Trust Agreement.

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

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

 60
 

treatment are unavailing) and except to the extent that the Indenture
Trustee may reasonably determine that such disclosure is consistent with its
obligations hereunder.

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

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

Section 11.19.      Disclaimer and Subordination.
Each Noteholder by accepting a Note acknowledges and agrees that such Note
represents a debt obligation of the Trust Depositor only and does not represent
an interest in any assets (other than the Trust Assets) of the Trust Depositor
(including by virtue of any deficiency claim in respect of obligations not paid
or otherwise satisfied from the Trust Assets and proceeds thereof). In
furtherance of and not in derogation of the foregoing, each Noteholder by
accepting a Note acknowledges and agrees that it shall have no right, title or
interest in or to any assets (or interests therein) (other than Trust Assets)
conveyed or purported to be conveyed by the Trust Depositor to another
securitization trust (i.e., other than the Issuer) or other Person or Persons
in connection therewith (whether by way of a sale, capital contribution or by
virtue of the granting of a Lien) (“Other Assets”). To the extent that,
notwithstanding the agreements and provisions contained in the preceding
sentences of this Section 11.19, any Noteholder either (i) asserts an interest
in or claim to, or benefit from, Other Assets, whether asserted against or
through the Trust Depositor or any other Person owned by the Trust Depositor,
or (ii) is deemed to have any such interest, claim or benefit in or from Other
Assets, whether by operation of law, legal process, pursuant to applicable
provisions of any applicable insolvency laws or otherwise (including without
limitation by virtue of Section 1111(b) of the federal Bankruptcy Code or any
successor provision having similar effect under the Bankruptcy Code or any
successor provision having similar effect under the Bankruptcy Code), and
whether deemed asserted against or through the Trust Depositor or any other
Person owned by the Trust Depositor, then each Noteholder by accepting a Note
further acknowledges and agrees that any such interest, claim or benefit in or
from Other Assets is and shall be expressly subordinated to the indefeasible
payment in full of all obligations and liabilities of the Trust Depositor
which, under the terms of the relevant documents relating to the securitization
of such Other Assets, are entitled to be paid from, entitled to the benefits
of, or otherwise secured by such Other Assets (whether or not any such
entitlement or security interest is legally perfected or otherwise entitled to
a priority of distribution or application under applicable law, including any
applicable insolvency laws, and whether asserted against the Trust Depositor or
any other Person owned by the Depositor), including, without limitation, the
payment of post-petition interest on such other obligations and liabilities. This
subordination agreement shall be deemed a subordination agreement within the
meaning of Section 510(a) of the Bankruptcy Code. Each Noteholder further
acknowledges and agrees that no adequate remedy at law exists for a breach of
this Section

 61
 

11.19 and that the terms and provisions of this Section 11.19 may be
enforced by an action for specific performance.

[signature page
follows]

 62

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

	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2007-1

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY, not in

  its individual capacity but solely on behalf of

  the Issuer as Owner Trustee under the Trust

  Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michele C. Harra

  	
   

  
	
   

  	
  Printed Name: Michele C. Harra

  	
   

  
	
   

  	
  Title: Financial Services Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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

  	
   

  
					

 

	
  STATE OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS

  
	
  COUNTY
  OF COOK

  	
  )

  	
   

  

 

On
1/25/07

[insert date]

before me, J.
Christopher Murphy

[Insert name and title of notary]

personally
appeared Michele C. Harra,

o            personally
known to me, or

o                                    proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument,

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

WITNESS
my hand and official seal.

 

	
  Signature

  	
  /s/
  J. Christopher Murphy

  	
  [Seal]

  

 

	
  STATE
  OF DELAWARE

  	
  )

  
	
   

  	
  )
  SS

  
	
  COUNTY
  OF NEW CASTLE

  	
  )

  

 

On
1/26/07

[insert date]

before me, Michelle
Kallick, Paralegal

[Insert name and title of notary]

personally
appeared Cynthia L. Davis,

o            personally
known to me, or

o                                    proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument,

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

WITNESS
my hand and official seal.

 

	
  Signature

  	
  /s/
  Michelle Kallick

  	
   

  	
  [Seal]

  

 

EXHIBIT A-1

FORM OF CLASS A-1
NOTE

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

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

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

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-1

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

	
  REGISTERED

  	
  $

  
	
   

  	
   

  
	
  No. R-

  	
  CUSIP No.           

  

 

Harley-Davidson
Motorcycle Trust 2007-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to [                ],
or registered assigns, the principal sum of                           
($        ) payable on the earlier of
the Distribution Date occurring in [                            ]
(the “Class A-1 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse hereof.

The
Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on the
preceding Distribution Date), subject to certain limitations contained in
Section 3.01 of the Indenture. Interest on this Note will accrue for each
Distribution Date during the related Interest Period and will be computed for
the actual number of days elapsed in the related Interest Period based on a
360-day year.

 A-1-1
 

Such principal of
and interest on this Note shall be paid in the manner specified on the reverse
hereof.

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

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

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

 A-1-2
 

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

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2007-1

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
									

 A-1-3
 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

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

	
  

  	
  THE BANK OF NEW YORK TRUST

  
	
   

  	
  COMPANY, N.A.

  not in its individual capacity but solely as

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 A-1-4
 

[REVERSE OF CLASS
A-1 NOTE]

This Note is one of a duly authorized issue of Notes
of the Issuer, designated as its [      ]%
Motorcycle Contract Backed Notes, Class A-1 (the “Class A-1 Notes”), all issued
under an Indenture, dated as of January 15, 2007 (the “Indenture”), between the
Issuer and The Bank of New York Trust Company, N.A., as Indenture Trustee (the “Indenture
Trustee”), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
The Class A-1 Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended,
shall have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

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

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

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

 A-1-5
 

Trustee or at the office
of the Indenture Trustee’s agent appointed for such purposes located in the
City of Chicago, Illinois.

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

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Servicer, on any Distribution Date on or after the date on which the Pool
Balance is less than 10% of the sum of (i) the Pool Balance as of the Initial
Cutoff Date and (ii) the aggregate Principal Balance of the Subsequent
Contracts as of their related Subsequent Cutoff Dates.

As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
his attorney duly authorized in writing, with such signature guaranteed by an eligible
guarantor institution which is a participant in the Securities Transfer Agent’s
Medallion Program (STAMP) or similar signature guarantee program, and such
other documents as the Indenture Trustee may require, and thereupon one or more
new program, and such other documents as the Indenture Trustee may require, and
thereupon one or more new Class A-1 Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee
or transferees. No service charge will be charged for any registration of
transfer or exchange of this Note, but the transferor may be required to pay a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any such registration of transfer or exchange.

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

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

 A-1-6
 

bankruptcy or similar law
in connection with any obligations relating to the Notes, the Indenture or the
Transaction Documents.

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

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

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

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

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

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

 A-1-7
 

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

 A-1-8

EXHIBIT A-2

FORM OF CLASS A-2 NOTE

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

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

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

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-1

[      ]%
MOTORCYCLE CONTRACT BACKED NOTES,

CLASS A-2

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.            

  

 

Harley-Davidson Motorcycle Trust 2007-1, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the “Issuer”), for value received, hereby promises to pay to [                     ],
or registered assigns, the principal sum of                       
($                        )
payable on the earlier of the Distribution Date occurring in [                   ]
(the “Class A-2 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.  No payments of principal of the
Class A-2 Notes shall be made until the principal on the Class A-1 Notes have
been paid in full.

The Issuer will pay interest on this Note at the rate
per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), subject to
certain limitations contained in Section 3.01 of the Indenture.  Interest on this Note will 

 A-2-1
 

accrue for each
Distribution Date during the related Interest Period and will be computed on
the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

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

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

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

 A-2-2
 

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

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2007-1

  
	
   

  	
   

  
	
   

  	
  By:

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

 A-2-3
 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
  

  	
  THE BANK OF NEW YORK TRUST 

  
	
   

  	
  COMPANY, N.A.,

  
	
   

  	
  not in its individual capacity but solely as 

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 A-2-4
 

[REVERSE OF CLASS
A-2 NOTE]

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [       ]% Motorcycle Contract Backed
Notes, Class A-2 (the “Class A-2 Notes”), all issued under an Indenture, dated
as of January 15, 2007 (the “Indenture”), between the Issuer and The Bank of
New York Trust Company, N.A., as Indenture Trustee (the “Indenture Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes.  The Notes are subject to all terms of the Indenture.  All terms used in this Note that are defined
in the Indenture, as supplemented or amended, shall have the meanings assigned
to them in or pursuant to the Indenture, as so supplemented or amended.

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

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

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

 A-2-5
 

Office or at the
office of the Indenture Trustee’s agent appointed for such purposes located in
the City of Chicago, Illinois.

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

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Servicer, on any Distribution Date on or after the date on which the Pool
Balance is less than 10% of the sum of (i) the Pool Balance as of the Initial
Cutoff Date and (ii) the aggregate Principal Balance of the Subsequent
Contracts as of their related Subsequent Cutoff Dates.

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

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

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against the Trust
Depositor or the Issuer, or join in any institution against the Trust Depositor
or the Issuer of any bankruptcy, reorganization, 

 A-2-6
 

arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the Transaction Documents.

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

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

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

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

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

 A-2-7
 

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

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

 A-2-8

EXHIBIT A-3

FORM OF CLASS A-3 NOTE

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

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

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

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-1

[      ]%
MOTORCYCLE CONTRACT BACKED NOTES,

CLASS A-3

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.          

  

 

Harley-Davidson Motorcycle Trust 2007-1, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the “Issuer”), for value received, hereby promises to pay to [                    ],
or registered assigns, the principal sum of                       
($                  )
payable on the earlier of the Distribution Date occurring in [                      ]
(the “Class A-3 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.  No payments of principal of the
Class A-3 Notes shall be made until the principal on the Class A-1 Notes have
been paid in full.

The Issuer will pay interest on this Note at the rate
per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), subject to
certain limitations contained in Section 3.01 of the Indenture.  Interest on this Note will 

 A-3-1
 

accrue for each
Distribution Date during the related Interest Period and will be computed on
the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

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

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

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

 A-3-2
 

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

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2007-1

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

 A-3-3
 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
  

  	
  THE BANK OF NEW YORK TRUST 

  
	
   

  	
  COMPANY, N.A.,

  
	
   

  	
  not in its individual capacity but solely as 

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 A-3-4
 

[REVERSE OF CLASS
A-3 NOTE]

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [       ]% Motorcycle Contract Backed
Notes, Class A-3 (the “Class A-3 Notes”), all issued under an Indenture, dated
as of January 15, 2007 (the “Indenture”), between the Issuer and The Bank of
New York Trust Company, N.A., as Indenture Trustee (the “Indenture Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes.  The Notes are subject to all terms of the
Indenture.  All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented
or amended.

The
Class A-3 Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture subject to
the priorities of allocations as to interest and principal payments as
described in the Sale and Servicing Agreement.

Principal
of the Class A-3 Notes will be payable on the earlier of the Class A-3 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.01(a)
or 10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A-3 Notes shall be due and payable on the date on which following the
occurrence of an Event of Default on which the maturity of the Notes shall have
been accelerated in the manner provided in the Indenture.  All principal payments on the Class A-3 Notes
shall be made pro rata to the Class A-3 Noteholders entitled thereto.

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

 A-3-5
 

Office or at the
office of the Indenture Trustee’s agent appointed for such purposes located in
the City of Chicago, Illinois.

The
Issuer shall pay interest on overdue installments of interest at the Class A-3
Rate to the extent lawful.

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Servicer, on any Distribution Date on or after the date on which the Pool
Balance is less than 10% of the sum of (i) the Pool Balance as of the Initial
Cutoff Date and (ii) the aggregate Principal Balance of the Subsequent
Contracts as of their related Subsequent Cutoff Dates.

As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new program, and such other
documents as the Indenture Trustee may require, and thereupon one or more new
Class A-3 Notes of authorized denomination and in the same aggregate principal
amount will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

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

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against the Trust
Depositor or the Issuer, or join in any institution against the Trust Depositor
or the Issuer of any bankruptcy, reorganization, 

 A-3-6
 

arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the Transaction Documents.

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

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

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

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

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

 A-3-7
 

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

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

 A-3-8

EXHIBIT A-4

FORM OF CLASS A-4 NOTE

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

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

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

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-1

[       ]%
MOTORCYCLE CONTRACT BACKED NOTES,

CLASS A-4

	
  REGISTERED

  	
  $

  
	
   

  	
   

  
	
  No. R-

  	
  CUSIP No.               

  

 

Harley-Davidson Motorcycle Trust 2007-1, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the “Issuer”), for value received, hereby promises to pay to [                   ],
or registered assigns, the principal sum of                        
($                 )
payable on the earlier of the Distribution Date occurring in [                      ]
(the “Class A-4 Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse
hereof.  No payments of principal of the
Class A-4 Notes shall be made until the principal on the Class A-1 Notes have
been paid in full.

The Issuer will pay interest on this Note at the rate
per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), subject to
certain limitations contained in Section 3.01 of the Indenture.  Interest on this Note will 

 A-4-1
 

accrue for each
Distribution Date during the related Interest Period and will be computed on
the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

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

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

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

 A-4-2
 

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

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2007-1

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

 A-4-3
 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
  

  	
  THE BANK OF NEW YORK TRUST 

  
	
   

  	
  COMPANY, N.A.,

  
	
   

  	
  not in its individual capacity but solely as 

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 A-4-4
 

[REVERSE OF CLASS
A-4 NOTE]

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [       ]% Motorcycle Contract Backed
Notes, Class A-4 (the “Class A-4 Notes”), all issued under an Indenture, dated
as of January 15, 2007 (the “Indenture”), between the Issuer and The Bank of
New York Trust Company, N.A., as Indenture Trustee (the “Indenture Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes.  The Notes are subject to all terms of the
Indenture.  All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented
or amended.

The
Class A-4 Notes and the other Classes of Notes described in the Indenture
(collectively, the “Notes”) are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture subject to
the priorities of allocations as to interest and principal payments as
described in the Sale and Servicing Agreement.

Principal
of the Class A-4 Notes will be payable on the earlier of the Class A-4 Final
Distribution Date and the Redemption Date, if any, pursuant to Section 10.01(a)
or 10.01(b) of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A-4 Notes shall be due and payable on the date on which following the
occurrence of an Event of Default on which the maturity of the Notes shall have
been accelerated in the manner provided in the Indenture.  All principal payments on the Class A-4 Notes
shall be made pro rata to the Class A-4 Noteholders entitled thereto.

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

 A-4-5
 

Office or at the
office of the Indenture Trustee’s agent appointed for such purposes located in
the City of Chicago, Illinois.

The
Issuer shall pay interest on overdue installments of interest at the Class A-4
Rate to the extent lawful.

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Servicer, on any Distribution Date on or after the date on which the Pool
Balance is less than 10% of the sum of (i) the Pool Balance as of the Initial
Cutoff Date and (ii) the aggregate Principal Balance of the Subsequent
Contracts as of their related Subsequent Cutoff Dates.

As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Note Register upon surrender
of this Note for registration of transfer at the office or agency designated by
the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
with such signature guaranteed by an eligible guarantor institution which is a
participant in the Securities Transfer Agent’s Medallion Program (STAMP) or
similar signature guarantee program, and such other documents as the Indenture
Trustee may require, and thereupon one or more new program, and such other
documents as the Indenture Trustee may require, and thereupon one or more new
Class A-4 Notes of authorized denomination and in the same aggregate principal
amount will be issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

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

Each
Noteholder, by acceptance of a Note or a beneficial interest in a Note
covenants and agrees that by accepting the benefits of the Indenture and such
Note that such Noteholder will not at any time institute against the Trust Depositor
or the Issuer, or join in any institution against the Trust Depositor or the
Issuer of any bankruptcy, reorganization, 

 A-4-6
 

arrangement,
insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the Transaction Documents.

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

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

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

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

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

 A-4-7
 

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

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

 A-4-8

EXHIBIT A-5

FORM OF CLASS B NOTE

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

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

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

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-1

[      ]%
MOTORCYCLE CONTRACT BACKED NOTES,

CLASS B

	
  REGISTERED

  	
  $

  
	
   

  	
   

  
	
  No. R-

  	
  CUSIP No.                    

  

 

Harley-Davidson Motorcycle Trust 2007-1, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the “Issuer”), for value received, hereby promises to pay to [                    ],
or registered assigns, the principal sum of                       
($                  )
payable on the earlier of the Distribution Date occurring in [                        ]
(the “Class B Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse hereof.

The Issuer will pay interest on this Note at the rate
per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), subject to
certain limitations contained in Section 3.01 of the Indenture.  Interest on this Note will accrue for each
Distribution Date during the related Interest Period and will be computed on 

 A-5-1
 

the basis of a 360-day
year of twelve 30-day months.  Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

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

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

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

 A-5-2
 

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

	
  Date:

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
  TRUST 2007-1

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

 A-5-3
 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
  

  	
  THE BANK OF NEW YORK TRUST 

  
	
   

  	
  COMPANY, N.A.,

  
	
   

  	
  not in its individual capacity but solely as 

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 A-5-4
 

[REVERSE OF CLASS
B NOTE]

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [      ]% Motorcycle Contract, Class B (the “Class
B Notes”), all issued under an Indenture, dated as of January 15, 2007 (the “Indenture”),
between the Issuer and The Bank of New York Trust Company, N.A., as Indenture Trustee
(the “Indenture Trustee”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes.  The Notes are subject to all
terms of the Indenture.  All terms used
in this Note that are defined in the Indenture, as supplemented or amended,
shall have the meanings assigned to them in or pursuant to the Indenture, as so
supplemented or amended.

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

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

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

 A-5-5
 

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

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Servicer, on any Distribution Date on or after the date on which the Pool
Balance is less than 10% of the sum of (i) the Pool Balance as of the Initial
Cutoff Date and (ii) the aggregate Principal Balance of the Subsequent
Contracts as of their related Subsequent Cutoff Dates.

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

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

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

 A-5-6
 

bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Transaction Documents.

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

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

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

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

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

 A-5-7
 

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

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

 A-5-8

EXHIBIT A-6

FORM OF CLASS C NOTE

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

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

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

HARLEY-DAVIDSON MOTORCYCLE TRUST 2007-1

[          ]%
MOTORCYCLE CONTRACT BACKED NOTES,

CLASS C

	
  REGISTERED

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  No. R-

  	
   

  	
  CUSIP No.             

  

 

Harley-Davidson Motorcycle Trust 2007-1, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the “Issuer”), for value received, hereby promises to pay to [                     ],
or registered assigns, the principal sum of                      
($                     )
payable on the earlier of the Distribution Date occurring in [                     ]
(the “Class C Final Distribution Date”) and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture referred to on the reverse hereof.

The Issuer will pay interest on this Note at the rate
per annum shown above on each Distribution Date until the principal of this
Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all
payments of principal made on the preceding Distribution Date), subject to
certain limitations contained in Section 3.01 of the Indenture.  Interest on this Note will accrue for each
Distribution Date during the related Interest Period and will be computed on

 A-6-1
 

the basis of a 360-day
year of twelve 30-day months.  Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

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

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

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

 A-6-2
 

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

	
  Date: 

  	
   

  	
   

  	
   

  	
  HARLEY-DAVIDSON MOTORCYCLE

  
	
   

  	
   

  	
  TRUST 2007-1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WILMINGTON TRUST
  COMPANY,

  not in its individual capacity but solely

  on behalf of the Issuer as Owner

  Trustee, under the Trust Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
   

  
	
   

  	
   

  	
  Title: 

  	
   

  
								

 

 A-6-3
 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	
   

  	
  THE BANK OF NEW YORK TRUST 

  COMPANY, N.A.,

  
	
   

  	
  not in its individual capacity but solely as 

  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 A-6-4
 

[REVERSE OF CLASS
C NOTE]

This
Note is one of a duly authorized issue of Notes of the Issuer, designated as
its [       ]% Motorcycle Contract, Class C
(the “Class C Notes”), all issued under an Indenture, dated as of January 15,
2007 (the “Indenture”), between the Issuer and The Bank of New York Trust
Company, N.A., as Indenture Trustee (the “Indenture Trustee”), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Notes.  The Notes are subject to all terms of the
Indenture.  All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented
or amended.

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

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

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

 A-6-5
 

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

As
provided in the Indenture, the Notes may be redeemed pursuant to Section
10.01(a) of the Indenture, in whole, but not in part, at the option of the
Servicer, on any Distribution Date on or after the date on which the Pool
Balance is less than 10% of the sum of (i) the Pool Balance as of the Initial
Cutoff Date and (ii) the aggregate Principal Balance of the Subsequent
Contracts as of their related Subsequent Cutoff Dates.

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

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

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

 A-6-6
 

bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Transaction Documents.

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

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

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

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

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

 A-6-7
 

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

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

 A-6-8

EXHIBIT B

FORM OF ASSIGNMENT

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

PLEASE INSERT
SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
   

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

  
	
   

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

  
	
   

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

  
	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Signature Guaranteed:

  
	
   

  
	
   

  
	
   

  	
   

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

  	
   

  
	
   

  
	
   

  	
   

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

  	
   

  
	
   

  
	
   

  	
   

  
	
  (Authorized Officer)

  

 

 B-1

EXHIBIT C

FORM OF NOTE DEPOSITORY AGREEMENT

 C-1

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