Document:

exv4w1

 

Exhibit 4.1

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-1
	 	Principal Amount
	 	 	 
	 	WASTE MANAGEMENT, INC.
	U.S. $350,000,000
	 	 	 
	 	5.00% SENIOR NOTES DUE 2014	 

CUSIP 94106LAR0

     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 Three Hundred Fifty
Million ($350,000,000) U.S. dollars, or such lesser principal sum as is shown
on the attached Schedule of Exchanges of Definitive Security, on March 15, 2014
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 5.00% 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 the
preceding March 1 or September 1, respectively, payable commencing September
15, 2004, with interest consisting of interest accrued from March 5, 2004.

 

 

     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. $350,000,000 in principal amount designated as the 5.00%
Senior Notes due 2014 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 JPMorgan Chase Bank as trustee (the
“Trustee”), as successor to The Chase Manhattan Bank, and successor to Texas
Commerce Bank National Association, 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 5, 2004 	WASTE MANAGEMENT, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Cherie C. Rice 	 
	 	 	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	Attest:

 	 
	 	By:  	 	 
	 	 	Linda J. Smith 	 
	 	 	Corporate 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 5, 2004 	JPMORGAN CHASE BANK,

as Trustee

 	 
	 	By:  	 	 
	 	 	Cary W. Gilliam 	 
	 	 	Vice President and Trust Officer 	 
	 

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REVERSE OF BOOK-ENTRY SECURITY

WASTE MANAGEMENT, INC.

5.00% SENIOR NOTES DUE 2014

     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 5.00% Senior Notes due 2014 of the Company, in initial
aggregate principal amount of $350,000,000 (the “Securities”).

1. Interest.

     The Company promises to pay interest on the principal amount of this
Security at the rate of 5.00% 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, 2004.
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 5, 2004. 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 5.00% 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 Trustee located at 4 New York Plaza Ground Floor
Window, New York, New York, 10004 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, JPMorgan Chase Bank 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 July 18, 2002 and January 30, 2004 (the
“Resolutions”). The Securities are subject to all such terms, and Holders of
Securities are referred to the Indenture, all indentures supplemental thereto,
said Act and said Resolutions 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 $350,000,000.

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 15 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 Make-Whole Price and the place(s) that
payment will be made upon presentation and surrender of Securities to be
redeemed. Unless the Company

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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 Barclays Capital Inc.,
Deutsche Bank Securities Inc. or J.P. Morgan Securities 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. 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 Barclays Capital Inc.,
Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc., or 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 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

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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 multiplies of $1,000 only.

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

6. Denominations; Transfer; Exchange.

     The Securities are issued in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder may 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.

7. Person Deemed Owners.

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

8. 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 Debt 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.

9. 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,

7

 

(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 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.

10. 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
or its Affiliates or any subsidiary of the Company’s Affiliates, and may
otherwise deal with the Company or its Affiliates as if it were not the
Trustee.

11. 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.

12. 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).

13. 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.

14. 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.

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15. 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.

16. Governing Law.

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

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

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

10exv4w2

 

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 and Treasurer, and the Corporate
Secretary of Waste Management, Inc. (the “Company”), hereby certify that:

     1. This Certificate is delivered to JPMorgan Chase Bank, as
successor to Texas Commerce Bank National Association and successor to
The Chase Manhattan Bank, 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 5, 2004 (the
“Order”) for the authentication and delivery by the Trustee of
$350,000,000 aggregate principal amount of 5.00% Notes due 2014
(“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 $350,000,000 aggregate principal amount
of Notes have been complied with, and such Debt Securities 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 July 18, 2002 and January 30, 2004 and
such resolutions, copies of which are attached hereto as Annex B, are in
full force and effect as of the date hereof.

 

 

     IN WITNESS WHEREOF, the undersigned has hereunto executed this Certificate
as of March 5, 2004.

	 	 	 	 	 
	 	 	 
	 	                                    /s/ Cherie C. Rice
 	 
	 	Cherie C. Rice 	 
	 	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                    /s/ Linda J. Smith
 	 
	 	Linda J. Smith 	 
	 	Corporate Secretary 	 
	 

 

 

Annex A

Terms of the Notes

     Pursuant to authority granted by the Board of Directors of the Company on
July 18, 2002 and January 30, 2004, 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 JPMorgan Chase Bank, as successor to The Chase Manhattan Bank, and
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 “5.00% Senior
Notes due 2014” (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
$350,000,000 (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, 2014.
	 
	 	(5)	 	Each Note shall bear interest from March 5, 2004 at the fixed
rate of 5.00% 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, 2004, 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)	 	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.

 

 

	 	(7)	 	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.
	 
	 	(8)	 	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 15 basis points; plus, in either case, accrued interest
to the Redemption Date.
	 
	 	(9)	 	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.
	 
	 	(10)	 	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.
	 
	 	(11)	 	The Notes shall be entitled to the benefit of the covenants
contained in Sections 1008 and 1009 of the Indenture.
	 
	 	(12)	 	The Trustee shall serve initially as Security Registrar for
the Notes.
	 
	 	(13)	 	The Notes shall be substantially in the form of Exhibit A
hereto.
	 
	 	(14)	 	The Notes will be fully and unconditionally guaranteed on a
senior basis by the Company’s wholly-owned subsidiary, Waste
Management Holdings, Inc. (“Holdings”) pursuant to a guarantee
agreement dated March 5, 2004 (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.

 

 

EXHIBIT A

TO

TERMS OF NOTES

(Form of Note)

 

 

Annex B

Resolutions of Board of Directors

     July 18, 2002 Resolution

     WHEREAS, the Company has previously filed with the Securities and Exchange
Commission (the “SEC”) a universal shelf registration statement 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;

     WHEREAS, the Company desires, and finds it in the best interest of the
Company, to file a new universal shelf registration statement, and pursuant to
Rule 429 under the Securities Act of 1933, as amended (the “Securities Act”)
carry forward the amount of securities remaining under the Company’s current
universal shelf registration statement on Form S-3 (Registration Statement No.
333-80063) to the new registration statement.

     NOW THEREFORE, BE IT

     RESOLVED, that the Company is hereby authorized to prepare and file with
the SEC a “Universal Shelf” Registration Statement on Form S-3 (the “Shelf
Registration Statement”), pursuant to the Securities Act and Rule 415
thereunder, which Shelf Registration Statement may cover, among other things,
unsecured senior or subordinated debentures, notes or other evidences of
indebtedness of the Company (collectively, the “Debt Securities”) and shares of
common stock, $.01 par value, of the Company (the “Common Stock” and together
with the Debt Securities, the “Securities”), which may 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 shall not exceed the amount of
Securities remaining available for issuance under the Company’s Registration
Statement No. 333-80063 on the date of filing the Shelf Registration Statement
with the SEC;

     RESOLVED, FURTHER, that the proper officers 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 Shelf Registration Statement
and any prospectus included therein and any additional documents which any such
officer may deem necessary or desirable with respect to the registration and
offering of the Securities, including, without limitation, registration
statements filed pursuant to Rule 462 of the Securities Act relating to up to
such additional amount of Securities as may be provided for in such Rule 462
(such additional registration statements shall be deemed to be a part of the
Shelf Registration Statement for purposes of these resolutions), and such
amendments, supplements, registration statements and documents to be in such
form as the officer executing the same may approve, as conclusively evidenced
by his execution thereof;

 

 

     RESOLVED, FURTHER, that David P. Steiner 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 Shelf Registration Statement and any and
all amendments (including, without limitation, post-effective amendments and
registration statements filed pursuant to Rule 462 of the Securities Act) and
supplements thereto, with all the powers incident to such appointment;

     RESOLVED, FURTHER, that the proper officers 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, together with the
other officers or employees the proper officers may designate, either orally or
in writing, be, and each of them hereby is, authorized to approve at any time
and from time to time, one or more forms of underwriting agreement (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 Shelf
Registration Statement, including any shares underlying 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 Shelf Registration Statement 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, together with any other
officer or employee as any proper officer may designate, either orally or in
writing, 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 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 officers 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 applications, 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 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 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 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, any
Executive Vice President, the Chief Financial Officer, the Senior Vice
President, General Counsel and Secretary, the Vice President and Controller and
the Vice President and Treasurer 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.

January 30, 2004 Resolution

     WHEREAS, by unanimous written consent dated July 18, 2002,
the Board of Directors approved the offering and sale by the
Company from time to time of up to an aggregate of approximately
$1.8 billion of senior and subordinated debt and common and
preferred stock (the “Shelf Offering”), together with all other
actions necessary to effect the Shelf Offering, including the
filing of a Universal Shelf Registration Statement on Form S-3
(the “Universal Shelf”); and

     WHEREAS, at this time, the Company desires to issue up to
$350 million of debt securities off of the Universal Shelf and so
advise the Board;

     NOW, THEREFORE, BE IT RESOLVED, the Board confirms that the
Chief Executive Officer, the Chief Financial Officer, the
Treasurer, and the Secretary of the Company (the “Authorized
Officers”)

 

 

be, and each of them hereby is, authorized, for and on behalf of
the Company, to issue up to $350 million of debt securities, in
such form and upon such terms and conditions as the Authorized
Officers deem appropriate; and

     RESOLVED FURTHER, that the Authorized Officers of the Company
be, and each of them hereby is, authorized and empowered, for and
on behalf of the Company, to take or cause to be taken any and all
such actions and to enter into, execute and deliver any and all
such acknowledgments, agreements, certificates, contracts,
indentures, instruments, notices, statements, powers of attorney
and other documents, or to effect any filings, registrations,
qualifications or applications with any and all appropriate
regulatory authorities, including the Securities and Exchange
Commission, any applicable state securities commission or agency,
the New York Stock Exchange and any credit rating agency, as may
be required or as any such Authorized Officer may deem necessary,
advisable or appropriate to effectuate and carry out the
transactions contemplated by, and the purposes and intent of, the
foregoing resolution; all such actions to be performed in such
manner and all such acknowledgments, agreements, certificates,
contracts, indentures, instruments, notices, statements, powers of
attorney and documents to be executed and delivered in such form
as the officer performing or executing the same shall approve,
such officer’s performance or execution and delivery thereof to be
conclusive evidence of such approval and the approval thereof by
this Board of Directors; and

     RESOLVED FURTHER, that the form of any additional resolutions
required in connection with the borrowings of funds described
above be, and hereby is, approved and adopted, provided the
Authorized Officers, on the advice of counsel, consider the
adoption thereof necessary or advisable, in which case the
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 of Directors with the
same force and effect as if set out verbatim herein; and

     RESOLVED FURTHER, that the Secretary and any Assistant
Secretary of the Company be, and each of them hereby is,
authorized and empowered, for and on behalf of the Company, to
certify and attest any documents that such Secretary or any such
Assistant Secretary may deem necessary, advisable or appropriate
to consummate the transactions contemplated by the documents
heretofore authorized and approved, provided that such attestation
shall not be required for the due authorization, execution and
delivery or validity of the particular document; and

     RESOLVED FURTHER, that the authority granted to the
Authorized Officers of the Company under the foregoing resolutions
shall

 

 

be deemed to include, in the case of each such resolution the
authority to perform such further acts and deeds for and on behalf
of the Company as may be necessary, advisable or appropriate, in
the judgment of any such officer, to carry out the transactions
contemplated thereby, and all acts and deeds previously performed
by any of the officers or counsel to the Company prior to the date
hereof that are within the authority conferred by the foregoing
resolutions be, and each of them hereby is, approved, ratified and
confirmed in all respects as the authorized acts and deeds of the
Company.

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