exv4w2



 





Exhibit 4.2




WASTE MANAGEMENT, INC.

Officers’ Certificate Delivered Pursuant to

Section 301 of the Indenture dated as of September 10, 1997




     The undersigned, the Vice President — Finance and Treasurer, and the Corporate Secretary of
Waste Management, Inc. (the “Company”), hereby certify that:



     1. This Certificate is delivered to The Bank of New York Trust Company, N.A. (the current
successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), pursuant to
Sections 102 and 301 of the Indenture dated as of September 10, 1997 between the Company, formerly
known as USA Waste Services, Inc., and the Trustee in connection with the Company Order dated March
  , 2008 (the “Order”) for the authentication and delivery by the Trustee of $600,000,000 aggregate
principal amount of 6.10% Notes due 2018 (“Notes”).



     2. The undersigned have read Sections 102, 103, 301 and 303 of the Indenture and the
definitions in the Indenture relating thereto.



     3. The statements made herein are based either upon the personal knowledge of the persons
making this Certificate or on information, data and reports furnished to such persons by the
officers, counsel, department heads or employees of the Company who have knowledge of the facts
involved.



     4. The undersigned have examined the Order, and they have examined the covenants, conditions
and provisions of the Indenture relating thereto.



     5. In the opinion of the persons making this Certificate, they have made such examination or
investigation as is necessary to enable them to express an informed opinion as to whether or not
all conditions provided for in the Indenture with respect to the Order have been complied with.



     6. All conditions precedent provided in the Indenture to the authentication by
the Trustee of $600,000,000 aggregate principal amount of Notes have been complied with, and such Notes
may be delivered in accordance with the Order as provided in the Indenture.



     7. The terms of the Notes (including the Form of Note) as set forth in Annex A to this
Officers’ Certificate have been approved by officers of the Company as duly authorized by
resolutions of the Board of Directors of the Company as of August 25, 2006 and such resolutions,
copies of which are attached hereto as Annex B, are in full force and effect as of the date hereof.



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     IN WITNESS WHEREOF,
the undersigned has hereunto executed this Certificate as of March   ,
2008.



	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Cherie C. Rice 	 
	 	Vice President - Finance and Treasurer 	 
	 
	 	 	 
	 	
 	 
	 	Linda J. Smith 	 
	 	Corporate Secretary 	 



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Annex A




Terms of the Notes





     Pursuant to authority granted by the Board of Directors of the Company on August 25, 2006 and
the Sole Director of Waste Management Holdings, Inc. on February 22, 2008, the Company has approved
the establishment, issuance, execution and delivery of a new series of Securities (as defined in
the Indenture) to be issued under the Indenture dated as of September 10, 1997 (the “Indenture”),
between the Company, formerly known as USA Waste Services, Inc., and The Bank of New York Trust
Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the
“Trustee”), the terms of which are set forth below. Capitalized terms used but not defined herein
are used herein as defined in the Indenture.




	(1)	 	The title of the series of Securities shall be “6.10% Senior Notes due 2018” (the “Notes”).
	 
	(2)	 	The Notes shall be general unsecured, senior obligations of the Company.
	 
	(3)	 	The initial aggregate principal amount of the Notes that may be authenticated and delivered
under the Indenture shall be $600,000,000 (except for Notes authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to
Section 304, 305, 306, 907 or 1107 of the Indenture); provided, however, that the authorized
aggregate principal amount of such series may be increased before or after the issuance of any
Notes of such series by a Board Resolution (or action pursuant to a Board Resolution) to such
effect.
	 
	(4)	 	The principal amount of each Note shall be payable on March 15, 2018.
	 
	(5)	 	Each Note shall bear interest from March 6, 2008 at the fixed rate of 6.10% per annum; the
Interest Payment Dates on which such interest shall be payable shall be March 15 and September
15, of each year, commencing September 15, 2008, until maturity unless such date falls on a
day that is not a Business Day, in which case, such payment shall be made on the next day that
is a Business Day. The Regular Record Date for the determination of Holders to whom interest
is payable shall be March 1 or September 1, respectively, immediately preceding such date, as
the case may be.
	 
	(6)	 	If a “Change of Control Triggering Event” (as defined in the Notes) occurs, each Holder of
the Notes may require us to purchase all or a portion of such Holder’s Notes at a price equal
to 101% of the principal amount, plus accrued interest, if any, to the date of purchase, on
the terms and subject to the conditions set forth in the Notes.
	 
	(7)	 	The Notes are to be issued as Registered Securities only. Each Note is to be issued as a
book-entry note (“Book-Entry Note”) but in certain circumstances may be represented by Notes
in definitive form. The Book-Entry Notes shall be issued, in whole or in part, in the form of
one or more Notes in global form as contemplated by Section 203 of the Indenture. The
Depositary with respect to the Book-Entry Notes shall be The Depository Trust Company, New
York, New York.




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	(8)	 	Payments of principal of, premium, if any, and interest due on the Notes representing
Book-Entry Notes on any Interest Payment Date or at maturity will be made available to the
Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which
is not a Business Day, in which case such payments will be made available to the Trustee by
11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the
Trustee will make such payments to the Depositary.
	 
	(9)	 	The Notes will be redeemable, at the option of the Company, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of (i) 100% of the principal
amount of the Notes to be redeemed or (ii) the sum of the present value of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation
of the Redemption Price) thereon (exclusive of interest accrued to the Redemption Date (as
defined in the Note)) discounted to the Redemption Date on a semiannual basis (assuming a 360
day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in
the Notes) plus 40 basis points; plus, in either case, accrued interest to the Redemption
Date.
	 
	(10)	 	The Company shall have no obligation to redeem, purchase or repay the Notes pursuant to any
mandatory redemption, sinking fund or analogous provisions or at the option of a Holder
thereof.
	 
	(11)	 	The Notes will be subject to defeasance and discharge as contemplated by Section 1302 of the
Indenture and to covenant defeasance under Section 1303 of the Indenture.
	 
	(12)	 	The Notes shall be entitled to the benefit of the covenants contained in Sections 1008 and
1009 of the Indenture.
	 
	(13)	 	The Trustee shall serve initially as Security Registrar for the Notes.
	 
	(14)	 	The Notes shall be substantially in the form of Exhibit A hereto.
	 
	(15)	 	The Notes will be fully and unconditionally guaranteed on a senior basis by the Company’s
wholly-owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions
of a Guarantee Agreement dated March 6, 2008 (the “Guarantee”). The amount of the Guarantee
will be limited to the extent required under applicable fraudulent conveyance laws to cause
the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in
full force and effect for the benefit of holders of the Notes until release thereof as set
forth in Section 6 of the Guarantee.




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Exhibit
A

Form of Note




BOOK-ENTRY SECURITY




     THIS SECURITY IS A BOOK-ENTRY SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A
NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF
THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.



     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION FOR TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR 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.



			
	 
	RGN-
	 	Principal Amount






U.S.
$                  ,

which may be decreased

by the Schedule of

Exchanges of Definitive

Security attached hereto




WASTE MANAGEMENT, INC.




6.10% SENIOR NOTES DUE 2018




CUSIP                   




     WASTE MANAGEMENT, INC., a Delaware corporation (the “Company,” which term includes any
successors under the Indenture hereinafter referred to), for value received, hereby promises to pay
to CEDE & CO. or registered assigns, at the office or agency of the Company, the principal sum of
                  
($                  ) U.S. dollars, or such lesser principal sum as is shown on the
attached Schedule of Exchanges of Definitive Security, on March 15, 2018 in such coin or currency
of the United States of America as at the time of payment shall be legal tender for the payment of
public and private debts, and to pay interest at an annual rate of 6.10% payable on March 15 and
September 15 of each year, to the person in whose name this Security is registered at the close of
business on the record date for such interest, which shall be



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the preceding March 1 or September 1, respectively, payable commencing September 15, 2008, with
interest consisting of interest accrued from March   , 2008.




     Reference is made to the further provisions of this Security set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.



     The statements in the legends set forth above are an integral part of the terms of this
Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound
by, the terms and provisions set forth in each such legend.



     This Security is issued in respect of a series of Securities of an initial aggregate of U.S.
$600,000,000 in principal amount designated as the 6.10% Senior Notes due 2018 of the Company and
is governed by the Indenture dated as of September 10, 1997, duly executed and delivered by the
Company, formerly known as USA Waste Services, Inc., to The Bank of New York Trust Company N.A.
(the current successor to Texas Commerce Bank National Association) as trustee (the “Trustee”), as
supplemented by Board Resolutions (as defined in the Indenture) (such Indenture and Board
Resolutions, collectively, the “Indenture”). The terms of the Indenture are incorporated herein by
reference. This Security shall in all respects be entitled to the same benefits as definitive
Securities under the Indenture.



     If and to the extent that any provision of the Indenture limits, qualifies or conflicts with
any other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended, such required provision shall control.



     The Company hereby irrevocably undertakes to the Holder hereof to exchange this Security in
accordance with the terms of the Indenture without charge.



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     This Security shall not be valid or become obligatory for any purpose until the Certificate of
Authentication hereon shall have been manually signed by the Trustee under the Indenture.



     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.



	 	 	 	 	 
	Dated: March   , 2008 	WASTE MANAGEMENT, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Cherie C. Rice 	 
	 	 	Vice President and Treasurer 	 
	 
	 	Attest:

 	 
	 	By:  	 	 
	 	 	Rick L Wittenbraker 	 
	 	 	Assistant Secretary 	 
	 



CERTIFICATE OF AUTHENTICATION





     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.



	 	 	 	 	 
	Date of Authentication: March   , 2008 	The Bank of New York Trust Company N.A.,

as Trustee

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 



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REVERSE OF BOOK-ENTRY SECURITY




WASTE MANAGEMENT, INC.




6.10% SENIOR NOTES DUE 2018





     This Security is one of a duly authorized issue of unsecured debentures, notes or other
evidences of indebtedness of the Company (the “Debt Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture
reference is hereby made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the Holders of the Debt
Securities. The Debt Securities may be issued in one or more series, which different series may be
issued in various aggregate principal amounts, may mature at different times, may bear interest (if
any) at different rates, may be subject to different sinking, purchase or analogous funds (if any)
and may otherwise vary as provided in the Indenture. This Security is one of a series designated as
the 6.10% Senior Notes due 2018 of the Company, in initial aggregate principal amount of
$                    (the “Securities”).



     1. Interest.



     The Company promises to pay interest on the principal amount of this Security at the rate of
6.10% per annum.



     The Company will pay interest semi-annually on March 15 and September 15 of each year (each an
“Interest Payment Date”), commencing September 15, 2008. Interest on the Securities will accrue
from the most recent date to which interest has been paid or, if no interest has been paid on the
Securities, from March   , 2008. Interest will be computed on the basis of a 360-day year consisting
of twelve 30-day months. The Company shall pay interest (including post-petition interest in any
proceeding under any applicable bankruptcy laws) on overdue installments of interest (without
regard to any applicable grace period) and on overdue principal and premium, if any, from time to
time on demand at the rate of 6.10% per annum, in each case to the extent lawful.



     2. Method of Payment.



     The Company shall pay interest on the Securities (except Defaulted Interest) to the persons
who are the registered Holders at the close of business on the Regular Record Date immediately
preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for
(“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of
business on a Special Record Date for the payment of such Defaulted Interest, or in any other
lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. Except as provided below, the Company shall pay principal
and interest in such coin or currency of the United States of America as at the time of payment
shall be legal tender for payment of public and private debts (“U.S. Legal Tender”). Payments in
respect of a Book-Entry Security (including principal, premium, if any, and interest) will be made
by wire transfer of immediately available funds to the accounts



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specified by the Depository. Payments in respect of Securities in definitive form (including
principal, premium, if any, and interest) will be made at the office or agency of the Company
maintained for such purpose within the Borough of Manhattan, the City of New York, which initially
will be at the corporate trust office of The Bank of New York located at 101 Barclay Street, Floor
21W, New York, New York, 10286 or at the option of the Company, payment of interest may be made by
check mailed to the Holders on the Regular Record Date or on the Special Record Date at their
addresses set forth in the Security Register of Holders.




     3. Paying Agent and Registrar.



     Initially, The Bank of New York will act as Paying Agent and Registrar. The Company may change
any Paying Agent, Registrar or co-Registrar at any time upon notice to the Trustee and the Holders.
The Company or any of its Subsidiaries may, subject to certain exceptions, act as Paying Agent,
Registrar or co-Registrar.



     4. Indenture.



     This Security is one of a duly authorized issue of Debt Securities of the Company issued and
to be issued in one or more series under the Indenture.



     Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Indenture and all indentures supplemental
thereto, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended, as in effect on the date of the Indenture, and those terms stated in the Officers’
Certificate to the Trustee, duly authorized by resolutions of the Board of Directors of the Company
on August 25, 2006 (the “Resolutions”) and the written consent of the sole Director of Waste
Management Holdings, Inc. on February 22, 2008 (the “Consent”). The Securities are subject to all
such terms, and Holders of Securities are referred to the Indenture, all indentures supplemental
thereto, said Act, said Resolutions and said Consent and Officers’ Certificate for a statement of
them. The Securities of this series are general unsecured obligations of the Company limited with
an initial aggregate principal amount of $600,000,000.



     5. Redemption.



     The Securities will be redeemable, at the option of the Company, at any time in whole, or from
time to time in part, at a Redemption Price (the “Make-Whole Price”) equal to the greater of: (i)
100% of the principal amount of the Securities to be redeemed; or (ii) the sum of the present
values of the remaining scheduled payments of principal and interest (at the rate in effect on the
date of calculation of the Redemption Price) on the Securities (exclusive of interest accrued to
the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the applicable Treasury Yield plus 40 basis points;
plus, in either case, accrued interest to the Redemption Date.



     Securities called for redemption become due on the Redemption Date. Notices of redemption will
be mailed at least 30 but not more than 60 days before the Redemption Date to each holder of record
of the Securities to be redeemed at its registered address. The notice of redemption for the
Securities will state, among other things, the amount of Securities to be redeemed, the Redemption
Date, the manner of determining the Make-Whole Price and the



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place(s) that payment will be made upon presentation and surrender of Securities to be redeemed.
Unless the Company defaults in payment of the Make-Whole Price, interest will cease to accrue on
any Securities that have been called for redemption at the Redemption Date. If less than all the
Securities are redeemed at any time, the Trustee will select the Securities to be redeemed on a pro
rata basis or by any other method the Trustee deems fair and appropriate.




     For purposes of determining the Make-Whole Price, the following definitions are applicable:



     “Treasury Yield” means, with respect to any Redemption Date applicable to the Securities, the
rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third
Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming
a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the applicable Comparable Treasury Price for such Redemption Date.



     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of the Securities.



     “Independent Investment Banker” means any of Banc of America Securities LLC, J.P. Morgan
Securities Inc. and Greenwich Capital Markets, Inc. (and their respective successors), or, if all
of such firms are unwilling or unable to select the applicable Comparable Treasury Issue, an
independent investment banking institution of national standing appointed by the Trustee and
reasonably acceptable to the Company.



     “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the bid price for
the Comparable Treasury Issue (expressed as a percentage of its principal amount) at 4:00 p.m., New
York City time, on the third Business Day preceding such Redemption Date, as set forth on “Telerate
Page 500” (or such other page as may replace Telerate Page 500), or (ii) if such page (or any
successor page) is not displayed or does not contain such bid prices at such time (a) the average
of the Reference Treasury Dealer Quotations obtained by the Trustee for such Redemption Date, after
excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (b) if
the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all
Reference Treasury Dealer Quotations obtained by the Trustee.



     “Reference Treasury Dealer” means (i) each of Banc of America Securities LLC, J.P. Morgan
Securities Inc. and Greenwich Capital Markets, Inc. (and their respective successors), unless any
of them ceases to be a primary U.S. Government securities dealer in New York City
(a “Primary Treasury Dealer”), in which case the Company will substitute therefor another Primary
Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the Company.



     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date for the Securities, an average, as determined by the Trustee, of



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the bid and asked prices for the Comparable Treasury Issue for the Securities (expressed in each
case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such
Redemption Date.




     Except as set forth above, the Securities will not be redeemable prior to their Stated
Maturity and will not be entitled to the benefit of any sinking fund.



     The Securities may be redeemed in part in a minimum principal amount of $2,000, or any
integral of $1,000 in excess thereof.



     Any such redemption will also comply with Article Eleven of the Indenture.



     6. Change of Control Offer



     If a Change of Control Triggering Event occurs, unless the Company has exercised its option to
redeem the Securities as described in Section 5, the Company
shall make an offer (a
“Change of Control Offer”) to each Holder of the Securities to repurchase all or any part (equal to
$2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Securities on the
terms set forth herein. In a Change of Control Offer, the Company shall offer payment
in cash equal to 101% of the aggregate principal amount of Securities repurchased (a “Change of
Control Payment”), plus accrued and unpaid interest, if any, on the Securities repurchased to the
date of repurchase, subject to the right of holders of record on the applicable record date to
receive interest due on the next Interest Payment Date.



     Within 30 days following any Change of Control Triggering Event or, at the Company’s option,
prior to any Change of Control, but after public announcement of the transaction that constitutes
or may constitute the Change of Control, the Company shall mail a notice to Holders of the
Securities describing the transaction that constitutes or may constitute the Change of Control
Triggering Event and offer to repurchase such Securities on the date specified in the applicable
notice, which date shall be no earlier than 30 days and no later than 60 days from the date such
notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the date
of consummation of the Change of Control, state that the Change of Control Offer is conditioned on
the Change of Control Triggering Event occurring on or prior to the applicable Change of Control
Payment Date.



     Upon the Change of Control Payment Date, the Company shall, to the extent lawful:




	 	•	 	accept for payment all Securities or portions of Securities properly tendered and not
withdrawn pursuant to the Change of Control Offer;
	 
	 	•	 	deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Securities or portions of Securities properly tendered; and
	 
	 	•	 	deliver or cause to be delivered to the Trustee the Securities properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Securities
or portions of Securities being repurchased.




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     The
Company need not make a Change of Control Offer upon the occurrence of a
Change of Control Triggering Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Company and the third
party repurchases all Securities properly tendered and not withdrawn under its offer. In addition,
the Company shall not repurchase any Securities if there has occurred and is continuing on the
Change of Control Payment Date an Event of Default under the Indenture, other than a default in the
payment of the Change of Control Payment upon a Change of Control Triggering Event.



     The Company will comply with the applicable requirements of Rule 14e-1 under the
Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’), and any other securities
laws and regulations thereunder to the extent those laws and regulations are applicable in
connection with the repurchase of the Securities as a result of a Change of Control Triggering
Event. To the extent that the provisions of any securities laws or regulations conflict with the
Change of Control Offer provisions of this Security, the Company may comply with those securities laws
and regulations and, if so, will not be deemed to have breached its obligations under the Change of
Control Offer provisions of this Security by virtue of any such conflict.



     For purposes of the Change of Control Offer provisions of the Securities, the following terms
are applicable:



     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or more series of related transactions, of all or substantially all of the
Company’s assets and the assets of its Subsidiaries, taken as a whole, to any person, other than
the Company or one of its Subsidiaries; (2) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any person becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of more than 50% of the outstanding Voting Stock of the Company or other Voting Stock
into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured
by voting power rather than number of shares; (3) the Company consolidates with, or merges with or
into, any person, or any person consolidates with, or merges with or into, the Company, in any such
event pursuant to a transaction in which any of the outstanding Voting Stock of the Company or the
Voting Stock of such other person is converted into or exchanged for cash, securities or other
property, other than any such transaction where the shares of the Voting Stock of the Company
outstanding immediately prior to such transaction constitute, or are converted into or exchanged
for, a majority of the Voting Stock of the surviving person or any direct or indirect parent
company of the surviving person, measured by voting power rather than number of shares, immediately
after giving effect to such transaction; (4) the first day on which a majority of the members of
the Board of Directors of the Company are not Continuing Directors; or (5) the adoption of a plan
relating to the liquidation or dissolution of the Company.



     Notwithstanding the preceding, a transaction will not be deemed to involve a Change of Control
under clause (2) above if (i) the Company becomes a direct or indirect wholly-owned subsidiary of a
holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such holding
company immediately following that transaction are substantially the same as the holders of Voting
Stock of the Company immediately prior to that transaction or (B) immediately following that
transaction no person (other than a holding company satisfying the requirements of this sentence)
is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such
holding company. The term ‘‘person,’’ as used in this definition, has the meaning given thereto in
Section 13(d)(3) of the Exchange Act.



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     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Rating Event.



     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who (1) was a member of such Board of Directors on the date the Securities
were issued or (2) was nominated for election, elected or appointed to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such Board of Directors
at the time of such nomination, election or appointment (either by a specific vote or by approval
of the Company’s proxy statement in which such member was named as a nominee for election as a
director, without objection to such nomination).






     “Fitch” means Fitch Inc. and its successors.



     “Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by
Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by
the Company.



     “Moody’s” means Moody’s Investors Service, Inc. and its successors.



     “Rating Agencies” means (1) each of Fitch, Moody’s and S&P and (2) if any of Fitch, Moody’s or
S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available
for reasons outside of the Company’s control, a ‘‘nationally recognized statistical rating
organization’’ within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by
the Company (as certified by a resolution of our Board of Directors) as a replacement agency for
Fitch, Moody’s or S&P, or all of them, as the case may be.



     “Rating Event” means the rating on the Securities is lowered by at least two of the three
Rating Agencies and the Securities are rated below an Investment Grade Rating by at least two of
the three Rating Agencies, in any case on any day during the period (which period will be extended
so long as the rating of the Securities is under publicly announced consideration for a possible
downgrade by any of the rating agencies) commencing 60 days prior to the first public notice of the
occurrence of a Change of Control or the Company’s intention to effect a Change of Control and
ending 60 days following consummation of such Change of Control.



     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
and its successors.



     “Voting Stock” means, with respect to any specified ‘‘person’’ (as that term is used in
Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at
the time entitled to vote generally in the election of the board of directors of such person.



     7. Denominations; Transfer; Exchange.



     The Securities are issued in registered form, without coupons, in a minimum denomination of
$2,000 and integral multiples of $1,000 in excess thereof. A Holder may



A-9







 







register the transfer of, or exchange, Securities in accordance with the Indenture. The Securities
Registrar may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.



     8. Person Deemed Owners.



     The registered Holder of a Security may be treated as the owner of it for all purposes.



     9. Amendment; Supplement; Waiver.



     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the Outstanding Securities of each series affected. Without
consent of any Holder, the parties thereto may amend or supplement the Indenture or the Securities
to, among other things, cure any ambiguity, defect or inconsistency, or make any other change that
does not adversely affect the interests of any Holder of a Security. Any such consent or waiver by
the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such Holder and upon all future Holders and owners of this Security and any Securities
which may be issued in exchange or substitution herefor, irrespective of whether or not any
notation thereof is made upon this Security or such other Securities.



     10. Defaults and Remedies.



     If an Event of Default with respect to the Securities occurs and is continuing, then in every
such case the Trustee or the Holders of not less than 25% in principal amount of the Securities
then Outstanding may declare the principal amount of all the Securities to be due and payable
immediately in the manner and with the effect provided in the Indenture. Notwithstanding the
preceding sentence, however, if at any time after such a declaration of acceleration has been made
and before judgment or decree for payment of the money due has been obtained by the Trustee as
provided in the Indenture, the Holders of a majority in principal amount of the Outstanding
Securities, by written notice to the Company and to the Trustee, may rescind and annul such
declaration and its consequences if (1) the Company has paid or deposited with the Trustee a sum
sufficient to pay (A) all overdue interest on all Securities, (B) the principal of (and premium, if
any, on) any Securities which has become due otherwise than by such declaration of acceleration and
any interest thereon at the rate prescribed therefor herein, (C) to the extent that payment of such
interest is lawful, interest upon overdue interest at the rate prescribed therefor herein, and (D)
all sums paid or advanced by the Trustee and the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel and (2) all Events of Default under the
Indenture with respect to the Securities, other than the nonpayment of the principal of Securities
which has become due solely by such declaration acceleration, shall have been cured or shall have
been waived. No such rescission shall affect any subsequent Event of Default or shall impair any
right consequent thereon. Holders of Securities may not enforce the Indenture or the Securities
except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the Securities then outstanding may direct the Trustee in its
exercise of any trust or power.



A-10









 







     11. Trustee Dealings with Company.



     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company and its Affiliates and any subsidiary of
the Company’s Affiliates, and may otherwise deal with the Company and its Affiliates as if it were
not the Trustee.



     12. Authentication.



     This Security shall not be valid until the Trustee or authenticating agent signs the
certificate of authentication on the other side of this Security.



     13. Abbreviations and Defined Terms.



     Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such
as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with
right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts
to Minors Act).



     14. CUSIP Numbers.



     Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the accuracy of such number as
printed on the Securities and reliance may be placed only on the other identification numbers
printed hereon.



     15. Absolute Obligation.



     No reference herein to the Indenture and no provision of this Security or the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of, premium, if any, and interest on this Security in the manner, at the respective
times, at the rate and in the coin or currency herein prescribed.



     16. No Recourse.



     No recourse under or upon any obligation, covenant or agreement contained in the Indenture or
in any Security, or because of any indebtedness evidenced thereby, shall be had against any
incorporator, past, present or future stockholder, officer or director, as such of the Company or
of any successor, either directly or through the Company or of any successor, either directly or
through the Company or any successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance of the Security by the Holder and
as part of the consideration for the issue of the Security.



A-11









 







     17. Governing Law.



     This Security shall be construed in accordance with and governed by the laws of the State of
New York.



     18. Guarantee.



     The Securities will be fully and unconditionally guaranteed on a senior basis by the Company’s
wholly-owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a
Guarantee Agreement dated March 6, 2008 (the “Guarantee”). The amount of the Guarantee will be
limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee
to be enforceable. The terms and conditions of the Guarantee shall continue in full force and
effect for the benefit of holders of the Securities until release thereof as set forth in Section 6
of the Guarantee.



A-12









 







SCHEDULE OF EXCHANGES OF DEFINITIVE SECURITY




     The following exchanges of a part of this Book-Entry Security for definitive Securities have
been made:



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	 	Amount of increase	 	 	Principal Amount	 	 	 	 
	 	 	 	 	decrease in	 	 	in Principal	 	 	of this Book-Entry	 	 	Signature of	 
	 	 	 	 	Principal Amount	 	 	Amount of this	 	 	Security following	 	 	authorized officer	 
	 	 	 	 	of this Book-Entry	 	 	Book-Entry	 	 	such decrease (or	 	 	of Trustee or	 
	Date of Exchange	 	 	Security	 	 	Security	 	 	increase)	 	 	Security Custodian	 





A-13









 





Annex B




WASTE MANAGEMENT, INC.




Resolutions Adopted by the Board of Directors

August 25, 2006




     WHEREAS, in July 2005, the Securities and Exchange Commission (the “SEC”) issued
final rules known as the “Securities Offering Reform,” such rules to be effective as of
December 1, 2005;



     WHEREAS, the Securities Offering Reform provides for a new form of registration
statement known as an “automatic shelf registration statement” that, among other
things, facilitates offerings of securities by issuers eligible to use such form by
providing for automatic effectiveness of the registration statement and any
post-effective amendments thereto;



     WHEREAS,
Waste Management, Inc., a Delaware Corporation (the
“Company”) has previously filed with the SEC a universal shelf
registration statement on Form S-3, which registered the offer and sale by the Company
of up to an aggregate of $3 billion of senior and subordinated debt and common stock;
and



     WHEREAS, the Company desires, and finds it in the best interests of the Company,
to file a registration statement on Form S-3 that will be designated as an “automatic
shelf registration statement” in order to facilitate any future offerings of securities
by the Company or any selling security holders and, pursuant to Rule 457(p) of the
Securities Act of 1933, as amended (the “Securities Act”), apply the unused amount of
filing fees paid in connection with the universal shelf registration statement to the
registration of the automatic shelf.



     NOW, THEREFORE, BE IT RESOLVED, that the Company is hereby authorized to prepare
and file with the SEC an automatic shelf registration statement on Form S-3 (the
“Automatic Shelf”), pursuant to the Securities Act and the rules and regulations
promulgated thereunder, which Automatic Shelf may cover, among other things, unsecured
senior or subordinated debentures, notes or other evidences of indebtedness of the
Company (collectively “Debt Securities”); shares of common stock, par value $0.01 per
share, of the Company (the “Common Stock”); warrants to purchase shares of Common
Stock; shares of preferred stock in such series with such designations, powers,
preferences and relative and other special rights and qualifications, limitations and
restrictions as the Board of Directors may from time to time authorize; guarantees of
securities by Waste Management Holdings, Inc., a wholly-owned subsidiary of the
Company; and any units consisting of one or more of the foregoing (the Debt Securities,
Common Stock, warrants, preferred stock, guarantees and units collectively referred to
herein as the “Securities”), to be issued from time to time at the discretion of any of
the proper officers (as established pursuant to these resolutions), to be offered from
time to time by the Company, the initial offering prices of which Securities may not,
without approval of the Board of Directors,



 









 







exceed the amount of Debt Securities and Common Stock remaining available for issuance
under the Company’s Registration Statement on Form S-3 Registration No. 333-97697 on
the date of the filing of the Automatic Shelf with the SEC;



     RESOLVED FURTHER, that the proper officers and the authorized employees (as
established pursuant to these resolutions) be, and each of them hereby is, authorized,
in the name and on behalf of the Company, to execute and cause to be filed with the SEC
any and all amendments (including, without limitation, post-effective amendments) or
supplements to the Automatic Shelf and any prospectus included therein and any
additional documents which such officer or employee may deem necessary or desirable
with respect to the registration and offering of the Securities, and such amendments,
supplements, registration statements and documents to be in such form as the officer or
employee executing the same may approve, as conclusively evidenced by his execution
thereof;



     RESOLVED FURTHER, that the General Counsel of the Company be, and he hereby is,
designated and appointed the agent for service of process on the Company under the
Securities Act in connection with the Automatic Shelf and any and all amendments and
supplements thereto, with all powers incident to such appointment;



     RESOLVED FURTHER, that the proper officers and authorized employees be and hereby
are authorized and directed in the name and on behalf of the Company to take any and
all action which they may deem necessary or advisable in order to effect the
registration or qualification of all or part of the Securities to be registered under
the Securities Act, for offer and sale under the securities or Blue Sky laws of the
states of the United States of America, and in connection therewith, to execute,
acknowledge, verify, deliver, file and publish all such applications, reports, issuer’s
covenants, resolutions, consents to service of process, or appointments of governmental
officials for the purpose of receiving and accepting service of process on the laws,
and to take any and all further action which they may deem necessary or advisable in
order to maintain any such registration or qualification for as long as they deem the
same to be in the best interest of the Company;



     RESOLVED FURTHER, that the form of any additional resolutions required in
connection with the appropriate qualification or registration of the Securities for
offer and sale under such securities or Blue Sky laws, be and hereby is approved and
adopted, provided the appropriate officers of the Company, on the advice of counsel,
consider the adoption thereof necessary or advisable, in which case the Secretary or
any Assistant Secretary of the Company is hereby directed to insert as an appendix
hereto a copy of such resolutions, which shall thereupon be deemed to have been adopted
by this Board with the same force and effect as if set out verbatim herein;



 









 





     RESOLVED FURTHER, that any of the proper officers or authorized employees be, and
each of them hereby is, authorized to approve at any time and from time to time, one or
more forms of underwriting agreements (and related terms agreement) and agency
agreement (and related purchase agreement) and any other agreement or agreements any of
such persons may deem necessary or appropriate in connection with the arrangements for
the purchase of any of the Securities, and that such persons be, and each of them
hereby is, authorized to execute and deliver, in the name and on behalf of the Company,
any such agreement or agreements in substantially the form approved by any of them,
with such changes therein as the person executing the same may approve, as conclusively
evidenced by the execution and delivery thereof, it being understood that, in the case
of any terms agreement or purchase agreement referred to above, it shall not be
necessary for any of the proper officers to approve any individual agreement pursuant
to which Securities are to be sold if the form thereof has previously been approved as
provided in this resolution;



     RESOLVED FURTHER, that any of the proper officers be, and each of them hereby is,
authorized, at any time and from time to time, on behalf of the Company, (i) to
determine, within any limits that may be set by the Board of Directors, the number of
shares of Common Stock, preferred stock or other equity securities to be offered and
sold by the Company pursuant to the Automatic Shelf, including any shares underlying
warrants or convertible Debt Securities, (ii) to authorize the reserve and issuance of
such shares and (iii) to take any and all action and to do or cause to be done any and
all things which may appear to any of the proper officers to be necessary or advisable
in order to authorize, offer, issue, and sell such shares of Common Stock, pursuant to
the Automatic Shelf and the applicable purchase agreement, which action could be taken
or which things could be done by the Board of Directors of the Company;



     RESOLVED FURTHER, that any of the proper officers may, at any time and from time
to time, on behalf of the Company, authorize the issuance of one or more series of
Securities under the Company’s indentures, within any limits that may be set by the
Board of Directors, and in connection therewith establish, or, if all of the Securities
of such series may not be originally issued at one time, to the extent deemed
appropriate, prescribe the manner of determining, within any limitations established by
any of the proper officers and subject in either case to the limitations set forth in
these resolutions, all of the terms of such Securities;



     RESOLVED FURTHER, that, in connection with any such series of Securities (but
without limiting the authority hereinafter in these resolutions conferred with respect
to the issuance of Securities of a series which may not all be originally issued at one
time), any of the proper officers is authorized at any time or from time to time to
determine the price or prices to be received by the Company in any offering or sale of
Securities of such series, any public offering price or prices thereof, any discounts
to be allowed or commissions to be paid to any agent, dealer or underwriter and any
other terms of offering or sale of



 









 







Securities of such series and to sell Securities of such series in accordance with any
applicable purchase agreement or other agreement(s);



     RESOLVED FURTHER, that, in connection with the issuance of Securities of any
series which may not be originally issued at one time (except as may be inconsistent
with any action taken by any of the proper officers, as hereinabove provided, in
connection with such series), any of the proper officers may delegate any of its
authority pursuant to these resolutions to any officer of the Company, including
authority to fix the terms of such Securities;



     RESOLVED FURTHER, that, in connection with any such series of Securities, any of
the proper officers is authorized to approve any amendment, modification or supplement
to the Company’s indentures and that any proper officer be, and each of them hereby is,
authorized to execute and deliver, in the name and on behalf of the Company, any such
amendment, modification or supplement, substantially in the form approved by any proper
officer;



     RESOLVED FURTHER, that the proper officers and authorized employees be, and each
of them hereby is, authorized, in the name and on behalf of the Company, to execute and
deliver such other agreements (including indemnity agreements), documents,
certificates, orders, requests and instruments as may be contemplated by the Company’s
indentures or required by the trustee thereunder, the security registrar or any other
agent of the Company under such indentures in connection therewith or as may be
necessary or appropriate in connection with the issuance and sale of Securities
thereunder;



     RESOLVED FURTHER, that the proper officers be, and each of them hereby is,
authorized, subject to and in accordance with the Company’s indentures and any action
taken by any of the proper officers in connection therewith, from time to time to
appoint or designate on behalf of the Company one or more security registrars, paying
agents and transfer agents for each series of Securities, to rescind on behalf of the
Company any such appointment or designation and to approve on behalf of the Company any
change in the location of any office through which any such security registrar, paying
agent or transfer agent acts, and in connection therewith to take such action and to
make, execute and deliver, or cause to be made, executed and delivered, such
agreements, instruments and other documents as any such officer may deem necessary or
appropriate;



     RESOLVED FURTHER, that the proper officers and authorized employees be, and each
of them hereby is, authorized, in the name and on behalf of the Company, to make
application to such securities exchange or exchanges as the persons acting shall deem
necessary or appropriate for the listing thereof of any of the Securities (including
any Common Stock or preferred stock underlying any convertible Securities) and in
connection therewith to appoint one or more listing agents and to prepare, or cause to
be prepared, execute and file, or cause to be filed, an application or applications for
such listing and any and all



 









 







amendments thereto and any additional certificates, documents, letters and other
instruments which any such officer may deem necessary or desirable; that such officers,
or such other person as any such officer may designate in writing, be, and each of them
hereby is, authorized to appear before any official or officials or before any body of
any such exchange, with authority to make such changes in such application, amendments,
certificates, documents, letters and other instruments and to execute and deliver such
agreements relative thereto, including, without limitation, listing agreements, fee
agreements and indemnity agreements relating to the use of facsimile signatures as
they, or any one of them, may deem necessary or appropriate in order to comply with the
requirements of any such exchange or to effect such listing;



     RESOLVED FURTHER, that the proper officers be, and each of them hereby is,
authorized, in the name and on behalf of the Company, to make application to the SEC
for registration of any series of the Securities under Section 12 or other applicable
section of the Securities Exchange Act of 1934, and the proper officers and authorized
employees are hereby authorized to prepare or cause to be prepared, and to execute and
file, or cause to be filed, with the SEC and any securities exchange an application or
applications for such registration and any and all amendments thereto and any
additional certificates, documents, letters and other instruments which any such
officer may deem necessary or desirable;



     RESOLVED FURTHER, that the officers and authorized employees of the Company be, and
each of them hereby is, authorized to take, or cause to be taken, any and all action
which any such officer may deem necessary or desirable in order to carry out the purpose
and intent of the foregoing resolutions or in order to perform, or cause to be
performed, the obligations of the Company under the Securities and any Shelf Indenture,
purchase agreement, shelf registration statement, Automatic Shelf or other agreement
referred to herein, and, in connection therewith, to make, execute and deliver, or cause
to be made, executed and delivered, all agreements, undertakings, documents,
certificates, orders, requests or instruments in the name and on behalf of the Company
as each such officer may deem necessary or appropriate;



     RESOLVED FURTHER, that for purposes of these resolutions, the term “proper
officer” shall mean any or all of the Chief Executive Officer, the Chief Financial
Officer, the General Counsel, the Secretary, the Chief Accounting Officer and the
Treasurer of the Company and the term “authorized employees” shall mean either or both
of the Vice President and Assistant General Counsel – Corporate and Securities and the
Corporate Counsel of the Company;



     RESOLVED FURTHER, that the form of any additional resolutions required in
connection with the foregoing resolutions be and hereby is approved and adopted,
provided the proper officers of the Company, on the advice of counsel, consider the
adoption thereof necessary or advisable, in which case the



 









 







Secretary or any Assistant Secretary of the Company is hereby directed to insert as an
appendix hereto a copy of such resolutions, which shall, upon execution, be deemed to
have been adopted by this Board with the same force and effect as if set out verbatim
herein; and



     RESOLVED FURTHER, that any officer of the Company is hereby authorized and
directed to make, provide, execute, and deliver any and all statements, applications,
certificates, representations, payments, notices, receipts, and other instruments and
documents and take any and all other actions which in the opinion of such officer is or
may be necessary or appropriate in connection with or to consummate any of the matters
covered by the foregoing resolutions.