Document:

exv4w1

EXHIBIT
4.1

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 Mellon 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 February 28, 2011 (the “Order”) for the authentication and delivery by the Trustee of
$400,000,000 aggregate principal amount of 4.60% Notes due 2021 (the “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
$400,000,000 aggregate principal amount of the 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 20, 2009 and such resolutions,
copies of which are attached hereto as Annex B, are in full force and effect as of the date
hereof.

[signature page follows]

WASTE MANAGEMENT, INC.

Officers’ Certificate Delivered Pursuant to

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

 

 

     IN WITNESS WHEREOF, the undersigned has hereunto executed as of the date first written
above.

	 	 	 	 	 

	 

	 	 

/s/ Cherie C. Rice
	 	 
	 

	 	 

Cherie C. Rice
	 	 
	 

	 	Vice President — Finance and

Treasurer	 	 
	 
	 	 	 	 
	 

	 	/s/ Linda J. Smith	 	 
	 

	 	 	 	 
	 

	 	Linda J. Smith	 	 
	 

	 	Corporate Secretary	 	 

WASTE MANAGEMENT, INC.

Officers’ Certificate Delivered Pursuant to

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

 

 

Annex A

Terms of the Notes

     Pursuant to authority granted by the Board of Directors of the Company on August 20, 2009 and
the Sole Director of Waste Management Holdings, Inc. on February 22, 2011, 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 Mellon
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 “4.60% Senior Notes due 2021” (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 $400,000,000 (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, 906 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 1, 2021.
	 
	(5)	 	Each Note shall bear interest from February 28, 2011 at the fixed rate of 4.60% per annum;
the Interest Payment Dates on which such interest shall be payable shall be March 1 and
September 1, of each year, commencing September 1, 2011, 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 February 15 or August 15, 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 the Company 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.

 

 

	(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)	 	Before the date that is three months prior to the maturity date, 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
Notes)) 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 20 basis points; plus, in either case, accrued interest to the Redemption Date. On or
after the date that is three months prior to the maturity date, the Notes will be redeemable
and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a
Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus
accrued interest on the Notes to be redeemed 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 Bank of New York Mellon 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 February 28, 2011 (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)

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

	 	WASTE MANAGEMENT, INC.
	 	Principal Amount

U.S. $400,000,000,
 which may be
decreased 
by the Schedule of

Exchanges of Definitive
 Security
attached hereto
	 
	 	 	 	 
	 

	 	4.60% SENIOR NOTES DUE 2021	 	 
	 
	 	 	 	 
	 

	 	 	 	CUSIP 941063AQ2

     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
Four Hundred Million ($400,000,000) U.S. dollars, or such lesser principal sum as is shown on the
attached Schedule of Exchanges of Definitive Security, on March 1, 2021 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 4.60% payable on March 1 and
September 1 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 February 15 or August 15, respectively, payable commencing September 1, 2011, with
interest consisting of interest accrued from February 28, 2011.

     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.
$400,000,000 in principal amount designated as the 4.60% Senior Notes due 2021 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 Mellon 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.

 

 

     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: February 28, 2011 	WASTE MANAGEMENT, INC.,

a Delaware corporation

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

 	 
	 	By:  	 	 
	 	 	Linda J. Smith 	 
	 	 	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: February 28, 2011 	The Bank of New York Mellon

Trust Company N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Marcella Burgess 	 
	 	 	Vice President 	 
	 

 

 

REVERSE OF BOOK-ENTRY SECURITY

WASTE MANAGEMENT, INC.

4.60% SENIOR NOTES DUE 2021

     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 4.60% Senior Notes due 2021 of the Company, in initial aggregate principal amount of
$400,000,000 (the “Securities”).

     1. Interest.

     The Company promises to pay interest on the principal amount of this Security at the rate of
4.60% per annum.

     The Company will pay interest semi-annually on March 1 and September 1 of each year (each an
“Interest Payment Date”), commencing September 1, 2011. 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 February 28, 2011. 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 4.60% 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

 

 

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 Mellon, 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 Mellon 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 20, 2009 (the “Resolutions”) and the written consent of the Sole Director of Waste
Management Holdings, Inc. on February 22, 2011 (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 $400,000,000.

     5. Redemption.

     Before the date that is three months prior to the maturity date, 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 20 basis points; plus, in either case,
accrued interest to the Redemption Date. On or after the date that is three months prior to the
maturity date, the Securities will be redeemable and repayable, at
the option of the Company, at any time in
whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of
the Securities to be redeemed plus accrued interest on the Securities to be redeemed 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 Redemption Price or, if not ascertainable, the manner of determining 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 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 either of Deutsche Bank Securities Inc. and RBS
Securities Inc. (and their respective successors), or, if both 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 Deutsche Bank Securities Inc. and RBS Securities
Inc. (and their respective successors), unless either 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 two other Primary
Treasury Dealers 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 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 multiple 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.

     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.

     “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 Section 3(a)(62) of 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 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.

     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.

     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 February 28, 2011 (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.

 

 

SCHEDULE OF EXCHANGES OF DEFINITIVE SECURITY

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

	 	 	 	 	 	 	 	 	 

	Date of Exchange
	 	Amount of

decrease in

Principal Amount

of this Book-Entry

Security
	 	Amount of increase

in Principal

Amount of this

Book-Entry

Security
	 	Principal Amount

of this Book-Entry

Security following

such decrease (or

increase)
	 	Signature of

authorized officer

of Trustee or

Security Custodian
	 
	 	 
	 	 
	 	 
	 	 

 

 

Annex B

Resolutions of the Board of Directors

of Waste Management, Inc.

     WHEREAS, on September 22, 2006, Waste Management, Inc. (the “Company”) filed with the
Securities Exchange Commission (the “SEC”) an automatic shelf registration statement on Form S-3,
File No. 333-137526 (the “Automatic Shelf”), which registered the offer and sale by the Company
from time to time of common stock; senior and subordinated debt securities; preferred stock;
warrants; units; and guarantees by Waste Management Holdings, Inc., a wholly-owned subsidiary of
the Company (“WMHI”), with respect to debt securities, in one or more classes or series in amounts
as may be determined at the time of any offering; and

     WHEREAS, pursuant to rules and regulations promulgated by SEC, the Automatic Shelf expires, by
its terms, on September 22, 2009, three years after the effective date of the Automatic Shelf; and

     WHEREAS, the Company desires, and finds it in the best interests of the Company, to file a new
automatic shelf registration statement on Form S-3 in order to facilitate any future offerings of
securities by the Company or any selling security holders.

     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 “New Automatic Shelf”), pursuant
to the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder
(the “Securities Act”), which New 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;

     RESOLVED FURTHER, that the proper officers (as established pursuant to these resolutions) be,
and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations
set forth in these resolutions, to cause the Company to offer and sell up to an aggregate of
$3,000,000,000 of Securities without further approval of the Board of Directors;

     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 New 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 New 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
New 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 New 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, the New Automatic Shelf and any indenture, purchase agreement, 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 or authorized
employee 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
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 Senior Counsel — Corporate & Securities 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.exv4w2

EXHIBIT
4.2

GUARANTEE

BY WASTE MANAGEMENT HOLDINGS, INC.

(formerly known as Waste Management, Inc.)

in Favor of The Bank of New York Mellon Trust Company, N.A., as Trustee for the Holders

of Certain Debt Securities of

WASTE MANAGEMENT, INC.

$400,000,000

4.60% Senior Notes due 2021

February 28, 2011

 

 

          GUARANTEE, dated as of February 28, 2011 (as amended from time to time, this “Guarantee”),
made by Waste Management Holdings, Inc. (formerly known as Waste Management, Inc.), a Delaware
corporation (the “Guarantor”), in favor of The Bank of New York Mellon Trust Company, N.A., as
trustee for the holders of the $400 million 4.60% Senior Notes due 2021 (the “Debt Securities”) of
Waste Management, Inc. (formerly known as USA Waste Services, Inc.), a Delaware corporation (the
“Issuer”).

WITNESSETH:

          SECTION 1. Guarantee

               (a) The Guarantor hereby unconditionally guarantees the punctual payment when due, whether at
stated maturity, by acceleration or otherwise, of the principal of, premium, if any, and interest
on the Debt Securities (the “Obligations”), according to the terms of the Debt Securities and as
more fully described in the Indenture (as amended, modified or otherwise supplemented from time to
time, the “Indenture”), dated as of September 10, 1997, between the Issuer, as successor to USA
Waste Services, Inc., and The Bank of New York Mellon Trust Company, N.A. (the current successor to
Texas Commerce Bank National Association), as trustee (the “Trustee”).

               (b) It is the intention of the Guarantor that this Guarantee not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to
this Guarantee. To effectuate the foregoing intention, the amount guaranteed by the Guarantor under
this Guarantee shall be limited to the maximum amount as will, after giving effect to such maximum
amount and all other contingent and fixed liabilities of the Guarantor (other than guarantees of
the Guarantor in respect of subordinated debt) that are relevant under such laws, result in the
Obligations of the Guarantor under this Guarantee not constituting a fraudulent transfer or
conveyance. For purposes hereof, “Bankruptcy Law” means Title 11, U.S. Code, or any similar Federal
or state law for the relief of debtors.

          SECTION 2. Guarantee Absolute. The Guarantor guarantees that the Obligations will be paid strictly in accordance with the terms
of the Indenture, regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of holders of the Debt Securities with
respect thereto. The liability of the Guarantor under this Guarantee shall be absolute and
unconditional irrespective of:

          (i) any lack of validity or enforceability of the Indenture, the Debt Securities or any
other agreement or instrument relating thereto;

          (ii) any change in the time, manner or place of payment of, or in any other term of, all or
any of the Obligations, or any other amendment or waiver of or any consent to departure from the
Indenture;

          (iii) any exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any other guaranty, for all or any of the
Obligations; or

 

 

          (iv) any other circumstance which might otherwise constitute a defense available to, or a
discharge of, the Issuer or a guarantor.

          SECTION 3. Subordination. The Guarantor covenants and agrees that its obligation to make payments of the Obligations
hereunder constitutes an unsecured obligation of the Guarantor ranking (a) pari passu with all
existing and future senior indebtedness of the Guarantor and (b) senior in right of payment to all
existing and future subordinated indebtedness of the Guarantor.

          SECTION 4. Waiver; Subrogation

               (a) The Guarantor hereby waives notice of acceptance of this Guarantee, diligence,
presentment, demand of payment, filing of claims with a court in the event of merger or bankruptcy
of the Issuer, any right to require a proceeding filed first against the Issuer, protest or notice
with respect to the Debt Securities or the indebtedness evidenced thereby and all demands
whatsoever.

               (b) The Guarantor shall be subrogated to all rights of the Trustee or the holders of any Debt
Securities against the Issuer in respect of any amounts paid to the Trustee or such holder by the
Guarantor pursuant to the provisions of this Guarantee; provided, however, that the Guarantor shall
not be entitled to enforce, or to receive any payments arising out of, or based upon, such right of
subrogation until all Obligations shall have been paid in full.

          SECTION 5. No Waiver, Remedies. No failure on the part of the Trustee or any holder of the Debt Securities to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

          SECTION 6. Continuing Guarantee; Transfer of Interest. This Guarantee is a continuing guaranty and shall (i) remain in full force and effect until the
earliest to occur of (A) the date, if any, on which the Guarantor shall consolidate with or merge
into the Issuer or any successor thereto, (B) the date, if any, on which the Issuer or any
successor thereto shall consolidate with or merge into the Guarantor, (C) payment in full of the
Obligations and (D) the release by the lenders under the Revolving Credit Agreement dated June 22,
2010, by and among the Issuer, the Guarantor (as guarantor), Bank of America, N.A., as
administrative agent, J.P. Morgan Securities Inc., Banc of America Securities LLC and Barclays
Capital, as lead arrangers and joint book runners (or under any replacement or new principal credit
facility of the Issuer) of the guarantee of the Guarantor thereunder, (ii) be binding upon the
Guarantor, its successors and

 

 

assigns, and (iii) inure to the benefit of and be enforceable by any holder of Debt Securities, the
Trustee, and by their respective successors, transferees, and assigns.

          SECTION 7. Reinstatement. This Guarantee shall continue to be effective or be reinstated, as the case may be, if at any
time any payment of any of the Obligations is rescinded or must otherwise be returned by any holder
of the Debt Securities or the Trustee upon the insolvency, bankruptcy or reorganization of the
Issuer or otherwise, all as though such payment had not been made.

          SECTION 8. Amendment. The Guarantor may amend this Guarantee at any time for any purpose without the consent of the
Trustee or any holder of the Debt Securities; provided, however, that if such amendment adversely
affects the rights of the Trustee or any holder of the Debt Securities, the prior written consent
of the Trustee shall be required.

          SECTION 9. Governing Law. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO THE PROVISIONS THEREOF RELATING TO CONFLICT OF LAWS.

 

 

          IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly executed and delivered
by its officers thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	WASTE MANAGEMENT HOLDINGS, INC.,

 	 
	 	By:  	
/s/ Cherie C. Rice 	 
	 	 	Cherie C. Rice 	 
	 	 	Vice President — Finance and Treasurer 	 
	 
	 	 	 
	 	By:  	
/s/ Devina Rankin 	 
	 	 	Devina Rankin 	 
	 	 	Assistant Treasurer 	 
	 

Signature Page to Guarantee

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