Document:

<PAGE>

                                                                   EXHIBIT 10.10

                             REIMBURSEMENT AGREEMENT

         This REIMBURSEMENT AGREEMENT, dated as of December 22, 2003 (as
amended, supplemented and otherwise modified from time to time, the
"Agreement"), is entered into among WASTE MANAGEMENT, INC., a Delaware
corporation ("Waste Management"), WASTE MANAGEMENT HOLDINGS, INC., a Delaware
corporation and wholly-owned subsidiary of Waste Management ("Holdings")
(executing this Agreement for the limited purposes set forth in Article VIII
hereof), OAKMONT ASSET TRUST, a Delaware statutory trust (the "Trust"), and THE
BANK OF NEW YORK (DELAWARE), as owner trustee (the "Owner Trustee") of the
Trust.

                             PRELIMINARY STATEMENTS:

         WHEREAS, Waste Management has heretofore and may from time to time
hereafter request Fleet National Bank (the "Fleet"), to issue from time to time
certain letters of credit ("Fleet Letters of Credit") for or on behalf of Waste
Management and its subsidiaries and other affiliates.

         WHEREAS, as a condition to Fleet issuing the Fleet Letters of Credit,
Fleet requires that Waste Management deliver an irrevocable master letter of
credit identifying Fleet as beneficiary thereunder and covering all unreimbursed
amounts drawn under the Fleet Letters of Credit designated as Designated Letters
of Credit (as defined below).

         WHEREAS, Waste Management has requested the Trust to issue such
irrevocable master letter of credit, in substantially the form of Exhibit A
attached hereto (such letter of credit being the "Master Letter of Credit"), in
the amount of $352,000,000.

         NOW, THEREFORE, in consideration of the premises and in order to induce
the Trust to issue the Master Letter of Credit, the parties hereto agree as
follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.01. Certain Defined Terms. The following terms used in this
Agreement shall have the following meanings, applicable both to the singular and
the plural forms of the terms defined:

         "Administration Agreement" shall mean the Administrative Services
Agreement dated as of the date hereof executed and delivered by the Trust and
the Administrator, as the same may be amended, supplemented and otherwise
modified from time to time.

         "Administrator" shall mean AMACAR Northwest, Inc., a Delaware
corporation.

<PAGE>

          "Agreement" shall have the meaning ascribed to such term in the
preamble hereof.

         "Allocated Amount" shall mean, with respect to a Designated Letter of
Credit, the amount indicated as such on the Schedule to the Designation
Certificate with respect to such Designated Letter of Credit, as such amount may
be reduced from time to time in accordance with the provisions of the Master
Letter of Credit. The maximum aggregate amount available to be drawn with
respect to a Designated Letter of Credit shall be the Allocated Amount of such
Designated Letter of Credit.

         "Applicable Interest Rate" shall mean a per annum rate equal to LIBOR
minus 0.10%.

         "Attributable Debt" shall mean, as of any particular time, the present
value, discounted at a rate per annum equal to (i) the implied lease rate of or
(ii) if the implied lease rate is not known to Waste Management or Holdings,
then the interest rate of the securities issued under the Senior Debt Indenture
compounded semi-annually, in either case, of the obligation of a lessee for
rental payments during the remaining term of any lease (including any period for
which such lease has been extended or may, at the option of the lessor, be
extended); the net amount of rent required to be paid for any such period shall
be the total amount of the rent payable by the lessee with respect to such
period but may exclude amounts required to be paid on account of maintenance and
repairs, insurance, taxes, assessments, water rates and similar charges; and, in
the case of any lease which is terminable by the lessee upon the payment of a
penalty, such net amount shall also include the amount of such penalty, but no
rent shall be considered as required to be paid under such lease subsequent to
the first date upon which it may be so terminated.

         "Bankruptcy Code" shall mean Title 11 of the United States Code (11
U.S.C. Sections 101 et seq.), as amended from time to time, and any successor
statute.

         "Board of Directors" shall mean either the board of directors of Waste
Management or any duly authorized committee of that board.

         "Business Day" shall mean a day which is not a Saturday or Sunday or a
legal holiday and on which banks or trust companies are not required or
authorized by law or other governmental action to close in New York, New York.

         "Cash Collateral Account" shall have the meaning ascribed to such term
in the Master Letter of Credit.

         "Certificateholder" means the person in whose name the certificate
representing the entire beneficial ownership of the Trust is registered;
provided that the sole initial Certificateholder shall be AMACAR GP, Inc.

         "Closing Date" shall mean the date on which the conditions precedent
set forth in Sections 3.01 and 3.02 hereof have been satisfied.

         "Consolidated Net Tangible Assets" shall mean, at any date of
determination, the total amount of assets of Waste Management after deducting
therefrom: (i) all the current liabilities

                                       2
<PAGE>

(excluding (a) any current liabilities that by their terms are extendible or
renewable at the option of the obligor thereon to a time more than twelve months
after the time as of which the amount thereof is being computed, and (b) current
maturities of long term debt) and (ii) the value (net of any applicable
reserves) of all intangible assets such as excess of cost over net assets of
acquired businesses, customer lists, covenants not to compete, licenses, and
permits, all as set forth on the consolidated balance sheet of Waste Management
and its consolidated Subsidiaries for Waste Management's most recently completed
fiscal quarter, prepared in accordance with GAAP.

         "Designated Letters of Credit" shall mean those Fleet Letters of Credit
identified as a "Designated Letter of Credit" in a properly presented
Designation Certificate under the Master Letter of Credit and as otherwise
provided for in the Master Letter of Credit.

         "Designation Certificate" shall mean a notice, substantially in the
form of Annex C to the Master Letter of Credit, executed and delivered by the
Administrator (on behalf of the Trust), Waste Management and Fleet identifying
those Fleet Letters of Credit that are Designated Letters of Credit.

         "Disclosure Documents" shall mean filings that have been made prior to
the date hereof by Waste Management with the Securities and Exchange Commission
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended.

         "Drawing Certificate" shall mean a certificate, substantially in the
form of Annex A-1 or A-2 to the Master Letter of Credit.

         "Drawn Principal Amount" shall mean the aggregate amount of the
Reimbursable Payments.

         "Event of Default" shall have the meaning ascribed to such term in
Section 6.01 hereof.

         "Expense Payment Account" shall have the meaning ascribed to such term
in the Indenture.

         "Final Drawing Certificate" shall have the meaning ascribed to such
term in the Master Letter of Credit.

         "Fixed Rate Notes" shall mean the Fixed Rate Notes due December 22,
2008 in the Principal Amount issued by the Trust pursuant to the Indenture.

         "Fixed Rate Payment Date" shall have the meaning ascribed to such term
in the Indenture.

         "Fleet" shall have the meaning ascribed to such term in the Preliminary
Statements.

         "Fleet Collateral" shall mean the Fleet Note, the Cash Collateral
Account (as defined in the Fleet Security Agreement), including all sums
credited to the Cash Collateral Account and all proceeds of the Fleet Note
(other than the actual cash payments paid by Fleet to the Trust that are

                                       3
<PAGE>

deposited into a Segregated Account) or the Cash Collateral Account or any and
all sums from time to time credited to the Cash Collateral Account.

         "Fleet Letters of Credit" shall mean letters of credit, denominated in
United States dollars and issued directly or indirectly for the account of Waste
Management or any of its subsidiaries or affiliates by Fleet.

         "Fleet Lien" shall mean the first priority Lien of Fleet in the Fleet
Collateral securing the Fleet Obligations.

         "Fleet Note" means a five-year term note issued by Fleet to the Trust
in an amount initially equal to the amount of the proceeds from the sale of the
Fixed Rate Notes, and due on December 21, 2008, or if such day is not a Business
Day on the immediately preceding Business Day.

         "Fleet Obligations" shall mean the "obligations" as defined in the
Fleet Security Agreement.

         "Fleet Security Agreement" shall mean the Security Agreement dated as
of December 22, 2003 between the Trust and Fleet pursuant to which the Trust
grants to Fleet a first priority Lien in the Fleet Collateral.

         "GAAP" shall mean generally accepted accounting principles set forth in
the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants Standards Board or in such
other statements by such other entity as may be in general use by significant
segments of the accounting profession as in effect on the date of the most
recent audited financial statements of Waste Management.

         "Governmental Authority" shall mean any nation or government, any
federal, state, local or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

         "Guaranteed Obligations" shall have the meaning ascribed to such term
in Section 8.01 hereof.

         "Guaranty" shall mean any agreement, undertaking or arrangement by
which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to
provide funds for payment, to supply funds to, or otherwise to invest in, a
debtor, or otherwise to assure a creditor against loss) the debt, payment or
other financial obligation or liability of any other Person (other than by
endorsements of instruments in the course of collection), or guarantees the
payment of dividends or other distributions upon the shares of any other Person.
The amount of the obligor's obligation under any Guaranty shall (subject to any
limitation set forth therein) be deemed to be the amount of such other Person's
debt, payment or other financial obligation or other liability or the amount of
such dividends or other distributions guaranteed.

         "Holdings" shall have the meaning ascribed to such term in the preamble
hereof.

                                       4
<PAGE>

         "Holdings Guaranty" shall have the meaning ascribed to such term in
Section 8.01 hereof.

         "Improperly Extended Letter of Credit" shall mean any letter of credit
which either (i) has an expiration date that has been extended by Fleet
subsequent to the fifth Business Day after the receipt by Fleet of a Notice of
No Further Designation if Fleet had the contractual right not to extend such
expiration date or (ii) is a so-called evergreen letter of credit and Fleet did
not exercise any right it had to terminate, cancel or otherwise not renew such
letter of credit subsequent to the fifth Business Day after the receipt of a
Notice of No Further Designation, to the extent that Fleet had the contractual
ability to do so.

         "Indebtedness" shall mean, with respect to any Person:

                  (a) all obligations of such Person for borrowed money
         (including, without limitation, all notes payable and drafts accepted
         representing extension of credit and all obligations evidenced by
         bonds, debentures, notes or other similar instruments) or on which
         interest charges are customarily paid, all as shown on a balance sheet
         of such Person as of the date at which Indebtedness is to be
         determined;

                  (b) all other items which, in accordance with GAAP, would be
         included as liabilities on the liability side of a balance sheet of
         such Person as of the date at which Indebtedness is to be determined;
         and

                  (c) whether or not so included as liabilities in accordance
         with GAAP, (i) all indebtedness (excluding, however, prepaid interest
         thereon) secured by a Security Interest in property owned or being
         purchased by such Person (including, without limitation, indebtedness
         arising under conditional sales or other title retention agreements)
         whether or not such indebtedness shall have been assumed by such
         Person, and (ii) all Guaranties of such Person.

         "Indenture" shall mean the Trust Indenture dated as of December 22,
2003 among the Trust and the Indenture Trustee.

         "Indenture Trustee" shall mean The Bank of New York, as trustee, under
the Indenture.

         "Interest Payment Obligation" shall have the meaning ascribed to such
term in Section 2.04 hereof.

         "Interest Period" shall mean the period commencing with the immediately
preceding Reimbursement Payment Date (or the Closing Date for the first Interest
Period) to (but not including) the immediately succeeding Reimbursement Payment
Date.

         "Letter of Credit Fee" shall have the meaning ascribed to such term in
Section 2.05 hereof.

                                       5
<PAGE>

         "LIBOR" shall mean, as of the relevant LIBOR Determination Date, the
annual rate for a three month period for deposits in United States dollars which
appears on Telerate Page 3750 as of 11:00 a.m., London time, on such date. If
such rate does not appear on Telerate Page 3750, the rate for that LIBOR
Determination Date will be an annualized rate determined on the basis of the
rates at which deposits in United States dollars are offered by the Reference
Banks at approximately 11:00 a.m., London time, on that day to prime banks in
the London inter-bank market for a three month period. The LIBOR Calculation
Agent will request the principal London office of each of the Reference Banks to
provide a quotation of its rate. If at least two such quotations are provided,
the rate for the LIBOR Determination Date will be an annualized rate equal to
the arithmetic mean of the quotations. If fewer than two quotations are provided
as requested, the rate for that LIBOR Determination Date will be the arithmetic
mean of the rates quoted by three major banks in New York City, selected by the
LIBOR Calculation Agent, at approximately 11:00 a.m., New York City time, on
that day for loans in United States dollars to leading European banks for a
three month period.

         "LIBOR Calculation Agent" shall mean the Indenture Trustee.

         "LIBOR Determination Date" shall mean the second London Banking Day
immediately preceding the beginning of each Interest Period.

         "Lien" shall mean, with respect to any Person, any interest granted by
such Person in any real or personal property, asset or other right owned or
being purchased or acquired by such Person which secures payment or performance
of any obligation and shall include any mortgage, lien, encumbrance, charge or
other security interest of any kind, whether arising by contract, as a matter of
law, by judicial process or otherwise.

         "LOC Fee Accrual Period" shall mean the period commencing with the
immediately preceding LOC Fee Payment Date (or the Closing Date for the first
LOC Fee Accrual Period) to (but not including) the immediately succeeding LOC
Fee Payment Date.

         "LOC Fee Payment Date" shall mean the 21st day of each June and
December of each year commencing on June 21, 2004. If any LOC Fee Payment Date
is not a Business Day then that date will nevertheless by a LOC Fee Payment Date
but the payment of the Letter of Credit Fee will be made on the immediately
preceding Business Day.

         "London Banking Day" shall mean any business day on which dealings in
deposits in United States dollars are transacted in the London interbank market.

         "Majority" means holders holding the Fixed Rate Notes the aggregate
principal amount of which is more than 50% of the principal amount of all Fixed
Rate Notes.

         "Master Letter of Credit" shall have the meaning ascribed to such term
in the Preliminary Statements.

         "Material Subsidiary" shall mean a Subsidiary of Waste Management
having assets, revenues or liabilities of $50,000,000 or more.

                                       6
<PAGE>

         "Maturity Date" shall mean December 21, 2008 or, if such day is not a
Business Day, the immediately preceding Business Day..

         "Note Interest Payment Account" shall mean the deposit account in the
name of the Indenture Trustee at The Bank of New York, ABA #021-000-018,
GLA-111-565, For further credit to: TAS #718550, Ref: Oakmont Asset Trust (Note
Interest Payment Account), Attention: Jon Farber.

         "Note Principal Payment Account" shall mean the deposit account in the
name of the Indenture Trustee at The Bank of New York, ABA #021-000-018,
GLA-111-565, For further credit to: TAS #718552, Ref: Oakmont Asset Trust (Note
Principal Payment Account), Attention: Jon Farber.

         "Notice of No Further Designation" shall mean a notice, substantially
in the form of Annex E to the Master Letter of Credit, sent by the Administrator
(on behalf of the Trust) to Fleet advising Fleet that the Trust has terminated
Waste Management's right to designate additional Designated Letters of Credit.
No additional Designated Letters of Credit will be covered by the Master Letter
of Credit.

         "Obligations" shall mean all obligations, liabilities, debts,
Reimbursement Obligations, Interest Payment Obligation owing by Waste Management
to the Trust of any kind or nature, present or future, whether or not evidenced
by any note, guaranty or other instrument, arising under this Agreement. This
term includes, without limitation, all interest, charges, expenses, fees,
attorney fees and disbursements, indemnities, obligations to cash collateralize
and any other sum chargeable to Waste Management under this Agreement.

         "Officers' Certificate" shall mean a certificate signed by any
Executive or Senior Vice President and by the Treasurer, an Assistant Treasurer,
the Secretary or an Assistant Secretary, of Waste Management and delivered to
the Owner Trustee.

         "Owner Trustee" shall have the meaning ascribed to such term in the
preamble hereof.

         "Person" shall mean any natural person, corporation, limited
partnership, general partnership, joint stock company, joint venture,
association, company, trust, bank, trust company, land trust, business trust,
limited liability company or other organization, whether or not a legal entity,
and any Governmental Authority.

         "Principal Amount" shall mean $350,000,000.

         "Principal Property" shall mean any waste processing, waste disposal or
resource recovery plant or similar facility located within the United States
(other than its territories and possessions and Puerto Rico) or Canada and owned
by, or leased to, Waste Management or any Restricted Subsidiary, except (a) any
such plant or facility (i) owned or leased jointly or in common with one or more
persons other than Waste Management and its Restricted Subsidiaries in which the
interest of Waste Management and its Restricted Subsidiaries does not exceed
50%, or (ii) which the Board of Directors determines in good faith is not of
material importance to the

                                       7
<PAGE>

total business conducted, or assets owned, by Waste Management and its
Subsidiaries as an entirety, or (b) any portion of such plant or facility which
the Board of Directors determines in good faith not to be of material importance
to the use or operation thereof.

         "Rating Agency Condition" shall have the meaning ascribed to such term
in the Indenture.

         "Reference Banks" shall mean four major banks in the London interbank
market selected by the LIBOR Calculation Agent.

         "Reimbursable Payment" shall mean each setoff and reduction made by
Fleet with respect to the principal amount owing under the Fleet Note including
the amount of set-off and reduction made by Fleet with respect to the
presentation of the Final Drawing Certificate.

         "Reimbursement Payment Date" shall mean the 21st day of each March,
June, September and December of each year or, if such day is not a Business Day,
on the immediately preceding Business Day, commencing on March 21, 2004.

         "Reimbursement Obligations" shall mean the aggregate non-contingent
reimbursement or repayment obligations of Waste Management with respect to the
Reimbursable Payments.

         "Related Documents" shall have the meaning ascribed to such term in
Section 2.07 hereof.

         "Removal Certificate" shall mean a Certificate, substantially in the
form of Annex G to the Master Letter of Credit, executed and delivered by the
Administrator (on behalf of the Trust), Fleet and Waste Management, identifying
those Designated Letters of Credit that should no longer be entitled to the
benefits of the Master Letter of Credit.

         "Restricted Subsidiary" shall mean any Subsidiary (other than a
Subsidiary of which Waste Management owns directly or indirectly less than all
of the outstanding Voting Stock) (a) principally engaged in, or whose principal
assets consist of property used by Waste Management or any Restricted Subsidiary
in, the storage, collection, transfer, interim processing or disposal of waste
within the United States of America or Canada, or (b) which Waste Management
shall designate as a Restricted Subsidiary in an Officers' Certificate delivered
to the Owner Trustee.

         "Sale and Leaseback" shall have the meaning ascribed to such term in
Section 5.03 hereof.

         "Security Instrument" shall mean any security agreement, chattel
mortgage, assignment, financing or similar statement or notice, continuation
statement, other agreement or instrument, or amendment or supplement to any
thereof, providing for, evidencing or perfecting any Security Interest or lien.

         "Security Interest" shall mean any interest in any real or personal
property or fixture which secures payment or performance of an obligation and
shall include any mortgage, lien,

                                       8
<PAGE>

encumbrance, charge or other security interest of any kind, whether arising
under a Security Instrument or as a matter of law, judicial process or
otherwise.

         "Senior Debt Indenture" shall mean the Indenture dated as of September
10, 1997 between Waste Management and JP Morgan Chase Bank, as trustee.

         "Stated Termination Date" shall have the meaning ascribed to such term
in the Master Letter of Credit.

         "Subsidiary" shall mean a corporation or other business entity, more
than 50% of the outstanding equity or voting interests of which is owned,
directly or indirectly, by Waste Management or by one or more other
Subsidiaries, or by Waste Management and one or more other Subsidiaries.

         "Swap Agreement" shall mean the obligation of the Swap Counterparties
to provide for the payment of a fixed interest rate against receipt from the
Trust, unconditionally guaranteed by the Swap Guarantor, of a floating interest
rate on a specified notional principal amount, documented pursuant to an ISDA
Master Agreement (1992 Multicurrency-Cross Border version) in the form published
by the International Swaps and Derivatives Association, Inc. and the schedule
attached thereto and any confirmation relating thereto.

         "Swap Counterparties" shall mean (1) ABN AMRO Bank N.V., (2) The Bank
of Nova Scotia, (3) Deutsche Bank AG, New York Branch, (4) Fleet National Bank,
(5) Lehman Brothers Special Financing Inc., and (6) PNC Bank, National
Association.

         "Swap Guarantor" shall mean Waste Management and Holdings.

         "Swap Payment Account" shall mean the deposit account in the name of
the Indenture Trustee at The Bank of New York, ABA #021-000-018, GLA-111-565,
For further credit to: TAS #718553, Ref: Oakmont Asset Trust (Swap Payment
Agreement), Attention: Jon Farber.

         "Tax Matters Partner" shall mean AMACAR Northwest, Inc.

         "Telerate Page 3750" shall mean the display page currently so
designated on the Dow Jones Market Service or any successor service (or such
other page as may replace that page on that service or any successor service for
the purpose of displaying comparable rates or prices).

         "Termination Certificate" shall mean a Certificate, substantially in
the form of Annex F to the Master Letter of Credit, executed and delivered by
the Administrator (on behalf of the Trust), Fleet and Waste Management,
identifying those Designated Letters of Credit that as of the date which shall
be no earlier than the thirtieth day, nor later than the fifth Business Day,
immediately preceding the Stated Termination Date (as defined in the Master
Letter of Credit) will no longer be designated as a "Designated Letter of
Credit" under the Master Letter of Credit.

         "Transaction Documents" shall mean this Agreement, the Swap Agreements,
the Indenture, the Master Letter of Credit, the Fleet Note, the Fleet Security
Agreement, the Administration

                                       9
<PAGE>

Agreement, the Trust Agreement and all documents, instruments and agreements
delivered in connection therewith.

         "Trust" shall have the meaning ascribed to such term in the preamble
hereof.

         "Trust Agreement" means the Amended and Restated Trust Agreement of the
Trust, dated December 22, 2003, between Waste Management, as Depositor, and the
Owner Trustee.

         "Undrawn Principal Amount" shall mean the Principal Amount minus the
Drawn Principal Amount.

         "Voting Stock" shall mean stock which ordinarily has voting power for
the election of directors, whether at all times or only so long as no senior
class of stock has such voting power by reason of any contingency.

         "Waste Management" shall have the meaning ascribed to such term in the
preamble hereof.

         SECTION 1.02. Computation of Time Periods. In this Agreement, in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding". Periods of days referred to in this Agreement shall be
counted in calendar days unless Business Days are expressly prescribed. Any
period determined hereunder by reference to a month or months or year or years
shall end on the day in the relevant calendar month in the relevant year, if
applicable, immediately preceding the date numerically corresponding to the
first day of such period, provided that if such period commences on the last day
of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month during which such period is to end), such period
shall, unless otherwise expressly required by the other provisions of this
Agreement, end on the last day of the calendar month.

         SECTION 1.03. Accounting Terms. For purposes of this Agreement, all
accounting terms not otherwise defined herein shall have the meanings assigned
to them in conformity with GAAP.

         SECTION 1.04. Other Definitional Provisions. References to the
"preamble", "Articles", "Sections", "subsections", "Schedules" and "Exhibits"
shall be to the preamble, Articles, Sections, subsections, Schedules and
Exhibits, respectively, of this Agreement unless otherwise specifically
provided. The words "hereof", "herein", and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement.

                                   ARTICLE II

                      AMOUNT AND TERMS OF LETTER OF CREDIT

                                       10
<PAGE>

         SECTION 2.01. The Master Letter of Credit. The Trust agrees, on the
terms and conditions hereinafter set forth, to issue the Master Letter of Credit
to Fleet on the Closing Date in the amount of up to $352,000,000. Under the
Master Letter of Credit, the Trust will pay to Fleet the amount of each
unreimbursed draw under a Designated Letter of Credit in accordance with the
Master Letter of Credit.

         SECTION 2.02. Designating/Removing Fleet Letters of Credit.

         (a)      Fleet Letters of Credit may be designated as Designated
Letters of Credit by delivery to Fleet of a Designation Certificate executed and
delivered by the Administrator on behalf of the Trust, Waste Management and
Fleet. Such notice shall specify for each Fleet Letter of Credit to be
designated a Designated Letter of Credit the Allocated Amount with respect
thereto. No Fleet Letter of Credit shall be designated a Designated Letter of
Credit and entitled to the benefits of the Master Letter of Credit until the
Designation Certificate has been executed by all parties thereto and delivered
to Fleet.

         (b)      Designated Letters of Credit may be removed from the coverage
of the Master Letter of Credit by delivery to the Trust of a Removal Certificate
or Termination Certificate executed by Fleet, Waste Management and the
Administrator on behalf of the Trust. After a Removal Certificate or Termination
Certificate has been delivered to the Trust, those Designated Letters of Credit
identified in such Removal Certificate or the Termination Certificate, as the
case may be, shall no longer be entitled to the benefits of the Master Letter of
Credit.

         (c)      If a Notice of No Further Designation has been delivered by
the Trust to Fleet, no Improperly Extended Letter of Credit shall constitute a
Designated Letter of Credit.

         SECTION 2.03. Reimbursement of the Reimbursable Payments. On the
Maturity Date, Waste Management shall pay to the Trust by depositing into the
Note Principal Payment Account, for the ratable benefit of the holders of the
Fixed Rate Notes, the aggregate principal amount of all Reimbursable Payments
outstanding at such time.

         SECTION 2.04. Interest. Interest shall accrue on each Reimbursable
Payment during the period commencing on the date Fleet is deemed to have made a
setoff or reduction with respect to the principal amount owing under the Fleet
Note as set forth in the Master Letter of Credit and the Fleet Security
Agreement to the date such Reimbursable Payment is paid in full under Section
2.03 at the Applicable Interest Rate. On each Reimbursement Payment Date, Waste
Management shall pay to the Indenture Trustee, for the ratable benefit of the
holders of the Fixed Rate Notes, interest at the Applicable Interest Rate on
each Reimbursable Payment outstanding or deemed to be outstanding as set forth
in the Master Letter of Credit and the Fleet Security Agreement during the
immediately preceding Interest Period (calculated based on the actual number of
days occurring in the Interest Period divided by 360). In the event that Fleet
draws under the Master Letter of Credit by presenting a Drawing Certificate in
the form of Annex A-2 during any Interest Period, Waste Management agrees to pay
to the Indenture Trustee, for the ratable benefit of the holders of the Fixed
Rate Notes, on the Reimbursement Payment Date the amount of such draw (all
amounts payable by Waste Management under this

                                       11
<PAGE>

Section 2.04 collectively referred to as the "Interest Payment Obligation").
Waste Management is hereby directed to deposit such Interest Payment Obligation
paid by Waste Management into the Swap Payment Account.

         SECTION 2.05. Letter of Credit Fee. Waste Management shall pay to the
Indenture Trustee for the benefit of the holders of the Fixed Rate Notes a
letter of credit fee (the "Letter of Credit Fee") on the Principal Amount from
the Closing Date until the Maturity Date in an amount equal to the Fixed Rate
Principal Amount times the rate of 1.13011428571429% per annum (calculated based
on 30 days divided by 360) over the LOC Fee Accrual Period, payable
semi-annually in arrears on each LOC Fee Payment Date. If the LOC Fee Payment
Date is not a Business Day, the Letter of Credit Fee will be paid on the
immediately preceding Business Day; however, the LOC Fee Accrual Period will not
be adjusted. In addition, Waste Management shall pay, only on the first LOC Fee
Payment Date, an additional fee in an amount equal to $43,886.12. Waste
Management is hereby directed to deposit such Letter of Credit Fees and
additional fee paid by Waste Management under this Section 2.05 into the Notes
Interest Payment Account.

         SECTION 2.06. Payments and Computations. Waste Management and Holdings
shall make each payment hereunder not later than by 12:30 p.m. (New York City
time) on the day when due in lawful money of the United States of America in
immediately available funds to the Indenture Trustee at its office in New York,
New York unless otherwise indicated herein..

         SECTION 2.07. Obligations Absolute. The obligations of Waste Management
under this Agreement shall be unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all circumstances,
including, without limitation, the following circumstances:

                  (i) any lack of validity or enforceability of this Agreement,
         the Master Letter of Credit and the Designated Letters of Credit
         (collectively the "Related Documents");

                  (ii) any change in the time, manner or place of payment of,
         all or any of the obligations of Waste Management in respect of the
         Master Letter of Credit or any other amendment or waiver of or any
         consent to departure from all or any of the Related Documents, provided
         that any such change, amendment, waiver or consent is made in
         compliance with the Related Documents;

                  (iii) the existence of any claim, set-off, defense or other
         right that Waste Management may have at any time against Fleet or any
         other beneficiary or any transferee of the Master Letter of Credit (or
         any persons or entities for whom Fleet, any such beneficiary or any
         such transferee may be acting), the Trust, the Swap Counterparties or
         any other Person, whether in connection with this Agreement, the
         transactions contemplated hereby or by the Related Documents or any
         unrelated transaction;

                  (iv) any statement or any other document presented under the
         Master Letter of Credit proving to be forged, fraudulent, invalid or
         insufficient in any respect or any

                                       12
<PAGE>

         statement therein being untrue or inaccurate in any respect (unless due
         to the gross negligence or willful misconduct of the Trust or Fleet);

                  (v) payment by the Trust under the Master Letter of Credit
         against presentation of a draft or certificate which does not comply
         with the terms of the Master Letter of Credit;

                  (vi) any exchange, release or non-perfection of any
         collateral, or any release or amendment or waiver of or consent to
         departure from any guarantee, for all or any of the obligations of
         Waste Management in respect of the Master Letter of Credit; or

                  (vii) any other circumstance that might otherwise constitute a
         defense available to, or a discharge of, Waste Management.

                                   ARTICLE III

                             CONDITIONS TO ISSUANCE

         SECTION 3.01. Condition Precedent to Issuance of the Master Letter of
Credit. The obligation of the Trust to issue the Master Letter of Credit is
subject to the condition precedent that the Owner Trustee shall have received on
or before the date of the issuance of the Master Letter of Credit the following,
each dated such date, in form and substance satisfactory to the Owner Trustee:

                  (a) An original of this Agreement executed and delivered by
         the parties hereto.

                  (b) A certified copy of the resolutions of the Board of
         Directors of Waste Management approving this Agreement, the form and
         content of the Master Letter of Credit and the other matters
         contemplated hereby, and of all other documents evidencing any other
         necessary corporate action.

                  (c) Originals (or copies certified to be true copies by an
         appropriate officer of Waste Management and Holdings) of all
         governmental and regulatory approvals, if any, necessary for Waste
         Management and Holdings with respect to this Agreement and the
         transactions contemplated hereby.

                  (d) A certificate of the Secretary or an Assistant Secretary
         of Waste Management and Holdings certifying the names and true
         signatures of the officers of Waste Management and Holdings authorized
         to sign this Agreement and the other documents to be delivered by it
         hereunder.

                  (f) An opinion of John S. Tsai, Esq., counsel for Waste
         Management and Holdings, substantially in the form of Exhibit B
         attached hereto.

                  (g) An executed copy (or a duplicate thereof) of the
         Indenture.

                                       13
<PAGE>

                  (h) The Owner Trustee shall have received a certificate signed
         by a duly authorized officer of Waste Management and by a duly
         authorized officer of Holdings, dated the date of the issuance of the
         Master Letter of Credit, stating that:

                           (i) The representations and warranties contained in
                  Section 4.01 of this Agreement are true and correct on and as
                  of the date of issuance of the Master Letter of Credit, before
                  and after giving effect to such issuance; and

                           (ii) No event has occurred and is continuing, or
                  would result from such issuance, which constitutes an Event of
                  Default or would constitute an Event of Default but for the
                  requirement that notice be given or time elapse or both.

         SECTION 3.02. Conditions Precedent to the Designation of Fleet Letters
of Credit. The obligation of the Trust to designate any Fleet Letter of Credit
as a Designated Letter of Credit shall be subject to the conditions precedent
that on the date of the designation of a Fleet Letter of Credit the Owner
Trustee and the Administrator shall have received a certificate signed by a duly
authorized officer of Waste Management and by a duly authorized officer of
Holdings, dated the date of such designation, stating that:

                  (i) The representations and warranties contained in Section
         4.01 of this Agreement are true and correct on and as of the date of
         designation of each Fleet Letter of Credit, before and after giving
         effect to such designation, as though made on and as of such date; and

                  (ii) No event has occurred and is continuing, or would result
         from such issuance, which constitutes an Event of Default or would
         constitute an Event of Default but for the requirement that notice be
         given or time elapse or both.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         SECTION 4.01. Representations and Warranties. In order to induce the
Trust to enter into this Agreement and to issue the Master Letter of Credit and
to designate the Designated Letters of Credit, each of Waste Management and
Holdings represents and warrants as follows:

         (a)      Waste Management is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Delaware and has
all requisite power and authority to own, operate and encumber its assets and to
conduct its business as presently conducted. Holdings is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware and has all requisite power and authority to own, operate and
encumber its assets and to conduct its business as presently conducted.

                                       14
<PAGE>

         (b)      Each of Waste Management and Holdings has the requisite power
and authority to execute, deliver and perform this Agreement and each of the
Related Documents to which it is a party.

         (c)      The execution, delivery and performance by each of Waste
Management and Holding of this Agreement and the Related Documents to which it
is a party are within its corporate powers, have been duly authorized by all
necessary corporate action, and do not contravene (i) Waste Management's or
Holdings' charter or by-laws or (ii) law or any contractual restriction binding
on or affecting Waste Management or Holdings, and do not result in or require
the creation of any lien, security interest or other charge or encumbrance upon
or with respect to any of its properties.

         (d)      No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body is required for
the due execution, delivery and performance by Waste Management or Holdings of
this Agreement or any Related Document to which it is a party.

         (e)      This Agreement has been executed and delivered by Waste
Management and Holdings and constitutes the legal, valid and binding obligation
of Waste Management and Holdings enforceable against Waste Management and
Holdings in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws or equity affecting the enforcement of creditor's rights
generally.

         (f)      Except as disclosed in the Disclosure Documents, there is no
pending or threatened action or proceeding affecting Waste Management or any of
its Subsidiaries before any court, governmental agency or arbitrator which may
materially adversely affect the financial condition or operations of Waste
Management and its Subsidiaries, taken as a whole, or which purports to affect
the legality, validity or enforceability of this Agreement or any Related
Document.

                                    ARTICLE V

                                    COVENANTS

         SECTION 5.01. Mergers; Consolidations; Sales of Assets. Waste
Management shall not consolidate with or merge into any other Person or convey,
transfer or lease its properties and assets substantially as an entirety to any
Person, unless:

                  (i) the Person formed by such consolidation or into which
         Waste Management is merged or the Person which acquires by conveyance
         or transfer, or which leases, the properties and assets of Waste
         Management substantially as an entirety shall be a corporation,
         partnership or trust and shall expressly assume, by satisfactory
         documentation (it being expressly understood that any documentation
         with respect to the assumption of the Obligations shall be deemed to be
         satisfactory if the obligations of Waste Management under the Senior
         Debt Indenture are expressly assumed pursuant to

                                       15
<PAGE>

         documentation satisfactory to JP Morgan Chase Bank as trustee under the
         Senior Debt Indenture), the due and punctual payment of the
         Reimbursement Obligations and any premium and interest thereon and all
         other amounts owing hereunder and the performance or observance of
         every other covenant of this Agreement on the part of Waste Management
         to be performed or observed;

                  (ii) immediately after giving effect to such transaction and
         treating any indebtedness which becomes an obligation of Waste
         Management or a Subsidiary as a result of such transaction as having
         been incurred by Waste Management or such Subsidiary at the time of
         such transaction, no Event of Default, and no event which, after notice
         or lapse of time or both, would become an Event of Default, shall have
         happened and be continuing; and

                  (iii) Waste Management has delivered to the Owner Trustee an
         Officers' Certificate and an opinion of counsel, each stating that such
         consolidation, merger, conveyance, transfer or lease and such
         documentation relating thereto comply with this Section 5.01 and that
         all conditions precedent herein provided for relating to such
         transaction have been complied with.

         SECTION 5.02. Limitation on Security Interests. (a) Waste Management
will not, and will not permit any of its Restricted Subsidiaries to, create,
incur, assume or suffer to exist, directly or indirectly, any Indebtedness
secured by a Security Interest upon any Principal Property of Waste Management
or of a Restricted Subsidiary, whether owned as of the date of this Agreement or
hereafter acquired, without making effective provision (and Waste Management
hereby covenants that in any such case it shall make or cause to be made
effective provision) whereby the Obligations shall be secured by such Security
Interest equally and ratably with any and all other Indebtedness of Waste
Management or any Restricted Subsidiary thereby secured for so long as any such
other Indebtedness of Waste Management or any Restricted Subsidiary shall be so
secured; provided that nothing in this Section 5.02 shall prevent, restrict or
apply to Indebtedness secured by:

                  (1) (a) Any Security Interest upon property or assets which is
         created prior to or contemporaneously with, or within 360 days after,
         (i) in the case of the acquisition of such property or assets, the
         completion of such acquisition and (ii) in the case of the
         construction, development or improvement of such property or assets,
         the later to occur of the completion of such construction, development
         or improvement or the commencement of operation or use of the property
         or assets, which Security Interest secures or provides for the payment,
         financing or refinancing, directly or indirectly, of all or any part of
         the acquisition cost of such property or assets or the cost of
         construction, development or improvement thereof; or (b) any Security
         Interest upon property or assets existing at the time of the
         acquisition thereof, which Security Interest secures obligations
         assumed by Waste Management or any Restricted Subsidiary; or (c) any
         conditional sales agreement or other title retention agreement with
         respect to any property or assets acquired by Waste Management or any
         Restricted Subsidiary; or (d) any Security Interest existing on the
         property or assets or shares of stock of a corporation or firm at the
         time such corporation or firm is merged into or consolidated with Waste
         Management or any

                                       16
<PAGE>

         Restricted Subsidiary or at the time of a sale, lease or other
         disposition of the property or assets of such corporation or firm as an
         entirety or substantially as an entirety to Waste Management or any
         Restricted Subsidiary or at the time such corporation becomes a
         Restricted Subsidiary; or (e) any Security Interest existing on the
         property, assets or shares of stock of any successor which shall have
         become Waste Management in accordance with the provisions of Section
         5.01 hereof; provided, in each case, that any such Security Interest
         described in the foregoing clauses (b), (c), (d) or (e) does not attach
         to or affect property or assets owned by Waste Management or any
         Restricted Subsidiary prior to the event referred to in such clauses;
         or

                  (2) Mechanics', materialmen's, carriers' or other like liens
         arising in the ordinary course of business (including construction of
         facilities) in respect of obligations which are not due or which are
         being contested in good faith; or

                  (3) Any Security Interest arising by reason of deposits with,
         or the giving of any form of security to, any governmental agency or
         any body created or approved by law or governmental regulation, which
         is required by law or governmental regulation as a condition to the
         transaction of any business or the exercise of any privilege, franchise
         or license (including, without limitation, any Security Interest
         arising by reason of one or more letters of credit in connection with
         any international waste management contract to be performed by Waste
         Management or any of its Subsidiaries or their respective affiliates);
         or

                  (4) Security Interests for taxes, assessments or governmental
         charges or levies not yet delinquent or Security Interests for taxes,
         assessments or governmental charges or levies already delinquent but
         the validity of which is being contested in good faith; or

                  (5) Security Interests (including judgment liens) arising in
         connection with legal proceedings so long as such proceedings are being
         contested in good faith and, in the case of judgment liens, execution
         thereon is stayed; or

                  (6) Landlords' liens on fixtures located on premises leased by
         Waste Management or any Restricted Subsidiary in the ordinary course of
         business; or

                  (7) Any Security Interest in favor of any governmental
         authority in connection with the financing of the cost of construction
         or acquisition of property; or

                  (8) Any Security Interest arising by reason of deposits to
         qualify Waste Management or any Restricted Subsidiary to conduct
         business, to maintain self-insurance, or to obtain the benefit of, or
         comply with, laws; or

                  (9) Any Security Interest that secures any Indebtedness of a
         Restricted Subsidiary owing to Waste Management or another Restricted
         Subsidiary or by Waste Management to a Restricted Subsidiary; or

                                       17
<PAGE>

                  (10) Any Security Interest incurred in connection with
         pollution control, sewage or solid waste disposal, industrial revenue
         or similar financing; or

                  (11) Any Security Interest created by any program providing
         for the financing, sale or other disposition of trade or other
         receivables qualified as current assets in accordance with GAAP entered
         into by Waste Management or by any Restricted Subsidiary, provided that
         such program is on terms comparable for similar transactions, or any
         document executed by Waste Management or any Restricted Subsidiary in
         connection therewith, and provided that such Security Interest is
         limited to the trade or other receivables in respect of which such
         program is created or exists and the proceeds thereof; or

                  (12) Any extension, renewal or refunding (or successive
         extensions, renewals or refundings) in whole or in part of any
         Indebtedness secured by any Security Interest referred to in the
         foregoing clauses (1) through (11), inclusive, provided that the
         Security Interest securing such Indebtedness shall be limited to the
         property or assets which, immediately prior to such extension, renewal
         or refunding, secured such Indebtedness and additions to such property
         or assets.

         Notwithstanding the foregoing provisions of this Section 5.02(a), Waste
Management or any of its Restricted Subsidiaries may create, incur, assume or
suffer to exist any Indebtedness secured by a Security Interest without so
securing the Obligations if, at the time such Security Interest becomes a
Security Interest upon any Principal Property of Waste Management or such
Restricted Subsidiary and after giving effect thereto, the aggregate outstanding
principal amount of all Indebtedness of Waste Management and its Restricted
Subsidiaries secured by Security Interests permitted by this sentence (excluding
Indebtedness secured by a Security Interest existing as of the date of this
Agreement, but including the Attributable Debt in respect of Sale and Leaseback
Transactions, other than Sale and Leaseback Transactions which, if the
Attributable Debt in respect thereof had been Indebtedness secured by a Security
Interest, would have been permitted by clause (1)(a) above, other Sale and
Leaseback Transactions the proceeds of which have been applied or committed to
be applied in accordance with Section 5.03(b) or Section 5.03(c) and other than
Sale and Leaseback Transactions between Waste Management and any Restricted
Subsidiary) does not exceed 15% of Consolidated Net Tangible Assets.

         (b) If, upon any consolidation or merger of any Restricted Subsidiary
with or into any other corporation, or upon any consolidation or merger of any
other corporation with or into Waste Management or any Restricted Subsidiary or
upon any sale or conveyance of the Principal Property of any Restricted
Subsidiary as an entirety or substantially as an entirety to any other Person,
or upon any acquisition by Waste Management or any Restricted Subsidiary by
purchase or otherwise of all or any part of the Principal Property of any other
Person, any Principal Property theretofore owned by Waste Management or such
Restricted Subsidiary would thereupon become subject to any Security Interest
not permitted by the terms of this Section 5.02, Waste Management, prior to such
consolidation, merger, sale or conveyance, or acquisition, will, or will cause
such Restricted Subsidiary to, secure payment of the principal of and interest,
if any, on the Obligations (equally and ratably with or prior to any other
Indebtedness of Waste Management or such Restricted Subsidiary then entitled
thereto) by a

                                       18
<PAGE>

direct lien on all such Principal Property prior to all liens other than any
liens theretofore existing thereon by supplemental indenture hereto or
otherwise.

         (c) If at any time Waste Management or any Restricted Subsidiary shall
create, incur, assume or suffer to exist any Indebtedness secured by any
Security Interest not permitted by this Section 5.02, to which the covenant in
the first paragraph of Section 5.02(a) or Section 5.02(b) is applicable, Waste
Management will promptly deliver to the Owner Trustee (1) an Officers'
Certificate stating that the covenant of Waste Management contained in the first
paragraph of Section 5.02(a) or Section 5.02(b) has been complied with; and (2)
an opinion of counsel to the effect that such covenant has been complied with,
and that any instruments executed by Waste Management in the performance of such
covenant comply with the requirements of such covenant.

         (d) In the event that Waste Management or any Restricted Subsidiary
shall hereafter secure the Obligations equally and ratably with or prior to any
other obligation or indebtedness pursuant to the provisions of this Section
5.02, the Owner Trustee is hereby authorized to enter into an indenture or
agreement supplemental hereto in accordance with Section 9.04 of the Indenture
and Section 11.01 of the Trust Agreement and to take such action, if any, as it
may deem advisable to enable it to enforce effectively the rights of the Trust
so secured, equally and ratably with or prior to such other obligations or
indebtedness.

         SECTION 5.03. Limitations On Sale And Leaseback Transactions. Waste
Management will not, and will not permit any Restricted Subsidiary to, enter
into any arrangement with any Person (other than with any Restricted Subsidiary)
providing for the leasing to Waste Management or any Restricted Subsidiary of
any Principal Property owned or hereafter acquired by Waste Management or such
Restricted Subsidiary (except for temporary leases for a term, including any
renewal thereof, of not more than three years and except for leases between
Waste Management and a Restricted Subsidiary or between Restricted
Subsidiaries), which Principal Property has been or is to be sold or transferred
by Waste Management or such Restricted Subsidiary to such person (herein
referred to as a "Sale and Leaseback Transaction") unless (a) Waste Management
or such Restricted Subsidiary would be entitled, pursuant to the provisions of
(i) clause (1)(a) of Section 5.02(a) or (ii) the second paragraph of Section
5.02(a), to incur Indebtedness secured by a Security Interest on the property to
be leased without equally and ratably securing the Obligations, or (b) Waste
Management shall, and in any such case Waste Management covenants that it will,
within 180 days after the effective date of any such arrangement, deliver to the
Owner Trustee, cash collateral for deposit in a cash collateral account in an
amount equal to the fair value (as determined by the Board of Directors) of such
property (such deposit to be held by the Indenture Trustee as security for, and
to provide for the payment of, the Obligations), or (c) Waste Management shall
within 180 days after entering into the Sale and Leaseback Transaction, enter
into a bona fide commitment or commitments to expend for the acquisition or
capital improvement of a Principal Property an amount at least equal to the fair
value (as determined by the Board of Directors) of such property.
Notwithstanding the foregoing, Waste Management may, and may permit any
Restricted Subsidiary to, effect any Sale and Leaseback Transaction that is not
acceptable pursuant to clauses (a) through (c), inclusive, of this Section 5.03,
provided that the Attributable Debt associated with such Sale and Leaseback
Transaction, together with the aggregate principal amount of outstanding debt
secured

                                       19
<PAGE>

by Security Interests upon Principal Property not acceptable pursuant to clauses
(1) through (12) of Section 5.02, inclusive, do not exceed 15% of Consolidated
Net Tangible Assets.

         SECTION 5.04. Reporting Requirements. Waste Management and Holdings
shall furnish to the Owner Trustee and the Administrator the following:

                  (a) as soon as possible, and in any event within five days
         after the occurrence of each Event of Default or each event which, with
         the giving of notice or lapse of time, or both, would constitute an
         Event of Default, continuing on the date of such statement, a statement
         of the chief financial officer, the chief executive or the treasurer of
         Waste Management setting forth details of such Event of Default or
         event and the action which Waste Management has taken and proposes to
         take with respect thereto;

                  (b) as soon as available and in any event within 60 days
         following the end of each fiscal quarter of Waste Management, a copy of
         Waste Management's Quarterly Reports on Form 10-Q, together with a
         certificate of the chief financial officer of Waste Management stating
         that no Event of Default, or event which, with notice or lapse of time
         or both, would constitute an Event of Default, has occurred and is
         continuing or, if an Event of Default or such event has occurred and is
         continuing, a statement as to the nature thereof and the action which
         Waste Management has taken and proposes to take with respect thereto;

                  (c) as soon as available and in any event within 120 days
         following the end of each fiscal year of Waste Management and Holdings,
         a copy of Waste Management's audited Annual Reports on Form l0-K,
         together with a certificate of the chief financial officer of Waste
         Management stating that no Event of Default, or event which, with
         notice or lapse of time or both, would constitute an Event of Default,
         has occurred and is continuing or, if an Event of Default or such event
         has occurred and is continuing, a statement as to the nature thereof
         and the action which Waste Management has taken and proposes to take
         with respect thereto; and

                  (d) as soon as available and in any event within five Business
         Days of the delivery of a Designation Certificate signed by Waste
         Management, the Administrator on behalf of the Trust and Fleet and
         delivered by the Administrator to Fleet, an updated list identifying
         all Designated Letters of Credit (with such information as may have
         been originally scheduled for such Designated Letters of Credit
         including, in any event the LOC identifying number and the Allocated
         Amount).

         SECTION 5.05. Best Efforts. Waste Management agrees to use its best
efforts to remove all of the Designated Letters of Credit from the benefits of
the Master Letter of Credit during the period from the thirtieth day preceding
the Stated Termination Date to the fifth Business Day preceding the Stated
Termination Date.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

                                       20
<PAGE>

         SECTION 6.01. Events of Default. The occurrence of any of the following
events shall be an "Event of Default" hereunder:

                  (a)      Waste Management shall fail to pay any Reimbursement
         Obligations when due and payable; or

                  (b)      Waste Management shall fail to pay any interest, fees
         or other obligations hereunder when the same becomes due and payable
         and such failure shall continue for a period of thirty days; or

                  (c)      Any representation or warranty made, or deemed made,
         by Waste Management or Holdings herein shall prove to have been
         incorrect in any material respect when made or deemed made; or

                  (d)      Waste Management shall fail to perform or observe any
         term, covenant or agreement contained in this Agreement and such
         failure shall remain unremedied for a period of sixty days after there
         has been given, by registered or certified mail, to Waste Management,
         the Trust and the Indenture Trustee by holders of at least 25% of the
         principal amount of the Fixed Rate Notes a written notice specifying
         such failure and requiring it to be remedied; or

                  (e)      Waste Management or any of its Subsidiaries shall
         fail to pay when due any Indebtedness in an aggregate principal amount
         greater than $50,000,000 (excluding Obligations under this Agreement),
         when the same becomes due and payable (whether by scheduled maturity,
         required prepayment, acceleration, demand or otherwise), and such
         failure shall continue after the applicable grace period, if any,
         specified in the agreement or instrument relating to such Indebtedness;
         or any other event shall occur or condition shall exist under any
         agreement or instrument relating to any such Indebtedness and shall
         continue after the applicable grace period, if any, specified in such
         agreement or instrument, if the effect of such event or condition is to
         accelerate, or to permit the acceleration of, the maturity of such
         Indebtedness; or any such Indebtedness shall be declared to be due and
         payable, or required to be prepaid (other than by a regularly scheduled
         required prepayment), redeemed, purchased or defeased, or an offer to
         prepay, redeem, purchase or defease such Indebtedness shall be required
         to be made, in each case prior to the stated maturity thereof; or

                  (f)      Waste Management or any Material Subsidiary shall
         generally not pay its debts as such debts become due, or shall admit in
         writing its inability to pay its debts generally, or shall make a
         general assignment for the benefit of creditors; or any proceeding
         shall be instituted by or against Waste Management or any Material
         Subsidiary seeking to adjudicate it as bankrupt or insolvent, or
         seeking liquidation, winding up, reorganization, arrangement,
         adjustment, protection, relief, or composition of it or its debts under
         any law relating to bankruptcy, insolvency or reorganization or relief
         of debtors, or seeking the entry of an order for relief or the
         appointment of a receiver, trustee, custodian or other similar official
         for it or for any substantial part of its property

                                       21
<PAGE>

         and, in the case of any such proceeding instituted against it (but not
         instituted by it), either such proceeding shall remain undismissed or
         unstayed for a period of sixty days, or any of the actions sought in
         such proceeding (including, without limitation, the entry of an order
         for relief against, or the appointment of a receiver, trustee,
         custodian or other similar official for, it or for any substantial part
         of its property) shall occur; or Waste Management or any Material
         Subsidiary shall take any corporate action to authorize any of the
         actions set forth above in this subsection (f).

         SECTION 6.02. Acceleration and Termination. If any Event of Default
shall have occurred and be continuing, the Owner Trustee shall, at the written
direction of the Majority, (i) declare the obligation of the Trust to increase
the amounts drawable under the Master Letter of Credit by designating additional
Fleet Letters of Credit as Designated Letters of Credit and to renew current
Designated Letters of Credit to be terminated, and send to Waste Management and
Fleet a Notice of No Further Designation, and (ii) declare all outstanding
Reimbursement Obligations, all Interest Payment Obligations and all other
amounts payable hereunder to be forthwith due and payable, whereupon such
Reimbursement Obligations, all such Interest Payment Obligations and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest, or further notice of any kind, all of which are hereby
expressly waived by Waste Management; provided, however, that in the event of an
actual or deemed entry of an order for relief with respect to Waste Management
or any of its Subsidiaries under the Bankruptcy Code, (A) the obligation of the
Trust to increase the amounts drawable under the Master Letter of Credit by
designating additional Fleet Letters of Credit as Designated Letters of Credit
or to renew Interest Payment Obligations existing Designated Letters of Credit
shall automatically be terminated and (B) the outstanding Reimbursement
Obligations, all Interest Payment Obligations and all such amounts shall
automatically become and be due and payable, without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
Waste Management. The Owner Trustee shall not be deemed to have knowledge of an
Event of Default unless it receives written notice thereof.

         SECTION 6.03 Deposit for Master Letter of Credit. In addition, after
the occurrence and during the continuance of an Event of Default, Waste
Management shall, promptly upon demand by the Owner Trustee at the direction of
the Majority, deliver to the Owner Trustee, cash collateral for deposit in a
cash collateral account in an amount equal to the aggregate Allocated Amounts
for all Designated Letters of Credit existing at such time plus any outstanding
Reimbursement Obligations and Interest Payment Obligation. Such deposit shall be
held by the Indenture Trustee as security for, and to provide for the payment
of, the Reimbursement Obligations and the Interest Payment Obligations.

                                   ARTICLE VII

                                  MISCELLANEOUS

         SECTION 7.01. Amendments. No amendment or waiver of any provision of
this Agreement, nor consent to any departure by Waste Management therefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Owner Trustee and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for

                                       22
<PAGE>

which given; provided, however, that (i) if any Fixed Rate Notes are outstanding
and have a rating, the Rating Agency Condition with respect to such amendment,
waiver or consent must be satisfied in order for such amendment, waiver or
consent to be effective and (ii) any amendment or waiver of Section 2.04 or
Section 7.04 shall not be effective unless consented to in writing by the Swap
Counterparties.

         SECTION 7.02. Notices. Any notice or other communication herein
required or permitted to be given shall be in writing and may be personally
served, telecopied, telexed or sent by courier service or United States
certified mail and shall be deemed to have been given when delivered in person
or by courier service, upon receipt of a telecopy or telex or four (4) Business
Days after deposit in the United States mail with postage prepaid and properly
addressed. For the purposes hereof, the addresses of the parties hereto (until
notice of a change thereof is delivered as provided in this Section 7.02) shall
be as set forth on Schedule 1 attached hereto, or, as to each party, at such
other address as may be designated by such party in a written notice to all of
the other parties to this Agreement. With respect to each notice and
communication sent to the Trust or the Owner Trustee on behalf of the Trust, a
copy of such notice or communication shall be sent to the Administrator at its
address on Schedule 1 attached hereto.

         SECTION 7.03. No Waiver; Remedies. No failure on the part of the Owner
Trustee 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 7.04. Indemnification. Waste Management hereby indemnifies and
holds harmless the Owner Trustee, the Administrator, the Indenture Trustee, the
Trust and their respective agents, officers, directors, trustees, agents,
attorneys and service providers (including the Certificateholder and the Tax
Matters Partner) (collectively, the "Indemnitees") from and against any and all
claims, actions, suits, damages, losses, liabilities, costs or expenses of any
kind and nature whatsoever which any Indemnitee may incur or which may be
claimed against any Indemnitee by any person or entity by reason of or in
connection with (i) the Indenture; (ii) the Fleet Note and the Fleet Security
Agreement; (iii) the Swap Agreements; (iv) the Trust Agreement, (v) the
Administration Agreement, (vi) the Master Letter of Credit or honoring or
failing to honor any draft or certificate presented thereunder, and (vii) any
other Transaction Document (clauses (i) through (vi) collectively referred to as
the "Indemnified Matters"); provided, however, that Waste Management shall not
be required to indemnify any Indemnitee pursuant to this Section 7.04 in
connection with any Indemnified Matter to the extent caused by such Indemnitee's
willful misconduct or gross negligence. Waste Management agrees to reimburse the
Trust for any obligations owing by the Trust to the Indenture Trustee pursuant
to Section 7.07 of the Indenture and to the Owner Trustee pursuant to Sections
8.01 and 8.02 of the Trust Agreement. Nothing in this Section 7.04 is intended
to limit the obligations of Waste Management contained in Article II. Without
prejudice to the survival of any other obligation of Waste Management hereunder,
the indemnities and obligations of Waste Management contained in this Section
7.04 shall survive the payment in full of amounts payable pursuant to Article
II, the termination of the Master Letter of Credit and the termination of the
Trust. The Owner Trustee, the Indenture Trustee, the Trust and their respective
agents, officers, directors, trustees,

                                       23
<PAGE>

agents, attorneys and service providers (including the Certificateholder and the
Tax Matters Partner) shall be deemed to be third party beneficiaries with
respect to this Section 7.04. All amounts payable by Waste Management under this
Section 7.04 shall be paid by depositing such amounts directly into the Expense
Payment Account.

         SECTION 7.05. No Liability of the Owner Trustee, the Administrator and
the Trust. Waste Management assumes all risks of the acts or omissions of Fleet
and any other beneficiary or transferee of the Master Letter of Credit with
respect to its use of the Master Letter of Credit. None of the Owner Trustee,
the Administrator, the Trust nor any of their respective officers or directors
shall be liable or responsible for: (a) the use which may be made of the Master
Letter of Credit or any acts or omissions of Fleet and any other beneficiary or
transferee in connection therewith; (b) the validity, sufficiency or genuineness
of documents, or of any endorsement thereon, even if such documents should prove
to be in any or all respects invalid, insufficient, fraudulent or forged; (c)
payment by the Owner Trustee or the Trust against presentation of documents that
do not comply with the terms of the Master Letter of Credit; or (d) any other
circumstances whatsoever in making or failing to make payment or honoring any
drafts or certificates under the Master Letter of Credit, except that Waste
Management shall have a claim against the Trust, the Administrator and/or the
Owner Trustee, to the extent of any direct, but not consequential, damages
suffered by Waste Management which Waste Management proves were caused by (i)
the Owner Trustee's, the Administrator's or the Trust's willful misconduct or
gross negligence in determining whether documents presented under the Master
Letter of Credit comply with the terms of the Master Letter of Credit or (ii)
the Owner Trustee's, the Administrator's or the Trust's willful failure to make
lawful payment under the Master Letter of Credit after the presentation to it by
Fleet of a draft and certificate strictly complying with the terms and
conditions of the Master Letter of Credit. In furtherance and not in limitation
of the foregoing, the Owner Trustee, the Administrator and the Trust may accept
documents that appear on their face to be in order, without responsibility for
further investigation.

         SECTION 7.06. Costs, Expenses and Taxes. Waste Management agrees to pay
on demand all costs and expenses in connection with the preparation, execution,
delivery, filing, recording, administration, modification and amendment of this
Agreement or any other Transaction Document, any of the other Transaction
Documents and any other documents which may be delivered in connection
therewith, including, without limitation, the fees and out-of-pocket expenses of
counsel for the Owner Trustee, the Administrator, the Indenture Trustee, the
Trust and their respective agents, officers, directors, trustees, agents,
attorneys and service providers (including the Certificateholder and the Tax
Matters Partner) and Fleet with respect thereto and with respect to advising the
Owner Trustee, the Administrator and the Trust as to their rights and
responsibilities under this Agreement. Waste Management further agrees to pay on
demand all costs and expenses (including counsel fees and expenses) in
connection with (i) the enforcement (whether through negotiations, legal
proceedings or otherwise) of this Agreement or any other Transaction Document
and such other documents which may be delivered in connection with this
Agreement, including, without limitation, counsel fees and expenses in
connection with the enforcement of rights under this Section 7.06, or (ii) any
action or proceeding relating to a court order, injunction, or other process or
decree restraining or seeking to restrain the Owner Trustee, the Administrator
or the Trust from paying any amount under the Master Letter of Credit. In
addition, Waste Management shall pay any and all stamp

                                       24
<PAGE>

and other taxes and fees payable or determined to be payable in connection with
the execution, delivery, filing and recording of this Agreement or the Master
Letter of Credit or the other Transaction Documents or any such other documents,
and agrees to save the Owner Trustee, the Administrator and the Trust harmless
from and against any and all liabilities with respect to or resulting from any
delay in paying or omission to pay such taxes and fees. The Owner Trustee, the
Administrator, the Indenture Trustee, the Trust and their respective agents,
officers, directors, trustees, agents, attorneys and service providers
(including the Certificateholder and the Tax Matters Partner) and Fleet shall be
deemed to be third party beneficiaries with respect to this Section 7.06. All
amounts payable by Waste Management under this Section 7.06 shall be paid by
depositing such amounts directly into the Expense Payment Account.

         SECTION 7.07. Binding Effect. This Agreement shall become effective
when it shall have been executed by Waste Management, Holdings and the Owner
Trustee and thereafter shall be binding upon and inure to the benefit of Waste
Management, Holdings and the Trust and their respective successors and assigns,
except that Waste Management and Holdings shall not have the right to assign its
rights hereunder or any interest herein without the prior written consent of the
Owner Trustee. The Trust and the Owner Trustee may assign all or any part of, or
any interest (undivided or divided) in, their rights and benefits under this
Agreement, and to the extent of that assignment such assignee shall assume all
obligations and have the same rights and benefits against Waste Management and
Holdings hereunder as it would have had if such assignee were the Trust or Owner
Trustee hereunder.

         SECTION 7.08. Severability. Any provision of this Agreement which is
prohibited, unenforceable or not authorized in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or non-authorization without invalidating the remaining
provisions hereof or affecting the validity, enforceability or legality of such
provision in any other jurisdiction.

         SECTION 7.09. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

         SECTION 7.10. Headings. Section headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.

         SECTION 7.11. Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall constitute an original but both or all of
which, when taken together, shall constitute but one instrument, and shall
become effective when copies hereof which, when taken together, bear the
signatures of each of the parties hereto shall be delivered to the Owner Trustee
and Waste Management.

         SECTION 7.12. Waivers. Each of Waste Management and Holdings hereby
agrees not to challenge or contest directly or indirectly (i) the validity,
extent or enforceability of the Master Letter of Credit or (ii) the priority,
validity, extent, perfection or enforceability of the Fleet Lien. Each of Waste
Management and Holdings hereby agrees that they will not, prior to the date
which is one year and one day (or, if longer, the applicable preference period
then in effect plus

                                       25
<PAGE>

one day) after termination of the Master Letter of Credit, institute against, or
join any other Person in instituting against the Trust any bankruptcy,
reorganization, arrangement, insolvency, moratorium or liquidation proceedings,
or other proceedings under Federal or State bankruptcy or similar laws of any
jurisdiction.

         SECTION 7.13. Limitation of Liability. It is expressly understood and
agreed by the parties hereto that (a) this Agreement is executed and delivered
by The Bank of New York (Delaware), not individually or personally but solely as
Owner Trustee of the Trust, in the exercise of the powers and authority
conferred and vested in it as trustee, (b) each of the representations,
undertakings and agreements herein made on the part of the Trust is made and
intended not as personal representations, undertakings and agreements by The
Bank of New York (Delaware) but is made and intended for the purpose for binding
only the Trust, (c) nothing herein contained shall be construed as creating any
liability on The Bank of New York (Delaware), individually or personally, to
perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties hereto and by any
Person claiming by, through or under the parties hereto and (d) under no
circumstances shall The Bank of New York (Delaware) be personally liable for the
payment of any indebtedness or expenses of the Trust or be liable for the breach
or failure of any obligation, representation, warranty or covenant made or
undertaken by the Trust under this Agreement or any other Transaction Document.

                                  ARTICLE VIII

                                HOLDINGS GUARANTY

         SECTION 8.01. Guaranty. For value received and hereby acknowledged and
as an inducement to the Trust to issue the Master Letter of Credit and enter
into this Agreement, Holdings hereby unconditionally and irrevocably guarantees
(a) the full punctual payment when due, whether at stated maturity, by
acceleration or otherwise, of all Obligations of Waste Management now or
hereafter existing whether for principal, interest, fees, expenses or otherwise,
and (b) the strict performance and observance by Waste Management of all
agreements, warranties and covenants applicable to Waste Management in this
Agreement and the Related Documents and (c) the obligations of Waste Management
under the Related Documents (all of such obligations collectively being
hereafter referred to as the "Guaranteed Obligations"). The foregoing guaranty
is a guaranty of payment and not of collection. For purposes of this Article
VIII, the obligations of Holdings under this Article VIII are referred to as the
"Holdings Guaranty."

         SECTION 8.02. Guaranty Absolute. Holdings guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms
hereof, regardless of any law, regulation or order now or hereafter in effect in
any jurisdiction affecting any of such terms or the rights of the Trust. The
liability of Holdings under the Holdings Guaranty with regard to the Guaranteed
Obligations shall be absolute and unconditional irrespective of:

         (a)      any change in the time, manner or place of payment of, or in
any other term of, all or any of its Guaranteed Obligations or any other
amendment or waiver of or any consent to

                                       26
<PAGE>

departure from this Agreement or any other Related Documents (with regard to
such Guaranteed Obligations);

         (b)      any release or amendment or waiver of or consent to departure
from any other guaranty for all or any of its Guaranteed Obligations;

         (c)      any change in ownership of Waste Management;

         (d)      any acceptance of any partial payment(s) from Waste Management
or Holdings; or

         (e)      any other circumstance similar or dissimilar to the foregoing
which might otherwise constitute a defense available to, or a discharge of,
Waste Management in respect of its Obligations under this Agreement.

         The Holdings Guaranty shall continue to be effective or be reinstated,
as the case may be, if at any time any payment of any Guaranteed Obligation is
rescinded or must otherwise be returned by the Trust upon the insolvency,
bankruptcy or reorganization of Waste Management or otherwise, all as though
such payment had not been made.

         SECTION 8.03. Effectiveness; Enforcement. No invalidity, irregularity
or unenforceability by reason of any bankruptcy or similar law, or any law or
order of any government or agency thereof purporting to reduce, amend or
otherwise affect any liability of Waste Management, and no defect in or
insufficiency or want of powers of Waste Management or irregular or improperly
recorded exercise thereof, shall impair, affect, be a defense to or claim
against such guaranty. The Holding Guaranty is a continuing guaranty and shall
(a) survive any termination of this Agreement, and (b) remain in full force and
effect until payment in full of, and performance of, all Guaranteed Obligations
and all other amounts payable under this Agreement. The Holdings Guaranty is
made for the benefit of the Trust and its successors and assigns, and may be
enforced from time to time as often as occasion therefor may arise and without
requirement on the part of the Trust first to exercise any rights against Waste
Management, or to resort to any other source or means of obtaining payment of
any of the said obligations or to elect any other remedy.

         SECTION 8.04. Waiver. Except as otherwise specifically provided to the
contrary, Holdings hereby waives promptness, diligence, protest, notice of
protest, all suretyship defenses, notice of acceptance and any other notice with
respect to any of its Guaranteed Obligations and the Holdings Guaranty and any
requirement that the Trust protect, secure, perfect any security interest or
lien or any property subject thereto or exhaust any right or take any action
against Waste Management or any other Person. Holdings also irrevocably waives,
to the fullest extent permitted by law, all defenses which at any time may be
available to it in respect of its Guaranteed Obligations by virtue of any
statute of limitations, valuation, stay, moratorium law or other similar law now
or hereafter in effect.

         SECTION 8.05. Expenses. Holdings hereby promises to reimburse the Trust
(a) for all out-of-pocket fees and disbursements (including all attorney's
fees), incurred or expended in connection with the preparation, filing or
recording, or interpretation of the Holdings Guaranty, any Related Documents to
which Holdings is a party, or any amendment, modification, approval,

                                       27
<PAGE>

consent or waiver hereof or thereof, and (b) for all out-of-pocket fees and
disbursements (including attorney's fees), incurred or expended in connection
with the enforcement of its Guaranteed Obligations (whether or not legal
proceedings are instituted).

         SECTION 8.06. Concerning Joint and Several Liability of Holdings.

         (a)      Holdings hereby irrevocably and unconditionally accepts, not
merely as a surety but also as a co-debtor, joint and several liability with
Waste Management, with respect to the payment and performance of all of its
Guaranteed Obligations (including, without limitation, any Guaranteed
Obligations arising under this Article VIII), it being the intention of the
parties hereto that all such Guaranteed Obligations shall be the joint and
several Guaranteed Obligations of Holdings and Waste Management without
preferences or distinction among them.

         (b)      If and to the extent that Waste Management shall fail to make
any payment with respect to any of its Obligations as and when due or to perform
any of its Guaranteed Obligations in accordance with the terms thereof, then in
each such event Holdings will make such payment with respect to, or perform,
such Guaranteed Obligation.

         (c)      The Guaranteed Obligations of Holdings under the provisions of
this Article VIII constitute full recourse obligations of Holdings enforceable
against Holdings to the full extent of its properties and assets, irrespective
of the validity, regularity or enforceability of this Agreement or any other
circumstance whatsoever.

         (d)      Except as otherwise expressly provided in this Agreement,
Holdings hereby waives notice of acceptance of its joint and several liability,
notice of any action at any time taken or omitted by the Trust under or in
respect of any of the Guaranteed Obligations, and, generally, to the extent
permitted by applicable law, all demands, notices and other formalities of every
kind in connection with this Agreement. Holdings hereby assents to, and waives
notice of, any extension or postponement of the time for the payment of any of
the Guaranteed Obligations, the acceptance of any payment of any of the
Guaranteed Obligations, the acceptance of any partial payment thereon, any
waiver, consent or other action or acquiescence by Trust at any time or times in
respect of any Event of Default by Waste Management or Holdings in the
performance or satisfaction of any term, covenant, condition or provision of
this Agreement or any other Related Document, any and all other indulgences
whatsoever by the Trust in respect of any of the Guaranteed Obligations, and the
taking, addition, substitution or release, in whole or in part, at any time or
times, of any security for any of the Guaranteed Obligations or the addition,
substitution or release, in whole or in part, of Waste Management or Holdings.
Without limiting the generality of the foregoing, Holdings assents to any other
action or delay in acting or failure to act on the part of the Trust with
respect to the failure by Waste Management or Holdings to comply with its
respective Obligations or Guaranteed Obligations, including, without limitation,
any failure strictly or diligently to assert any right or to pursue any remedy
or to comply fully with applicable laws or regulations thereunder, which might,
but for the provisions of this Article VIII, afford grounds for terminating,
discharging or relieving Holdings, in whole or in part, from any of the
Guaranteed Obligations under this Article VIII, it being the intention of
Holdings that, so long as any of the Guaranteed Obligations hereunder remain
unsatisfied, the Guaranteed Obligations of Holdings under this Article VIII
shall not be discharged except by performance and then only to the extent of
such performance. The

                                       28
<PAGE>

Guaranteed Obligations of Holdings under this Article VIII shall not be
diminished or rendered unenforceable by any winding up, reorganization,
arrangement, liquidation, reconstruction or similar proceeding with respect to
Waste Management, Holdings or the Trust. The joint and several liability of
Holdings hereunder shall continue in full force and effect notwithstanding any
absorption, merger, consolidation, amalgamation or any other change whatsoever
in the name, membership, constitution or place of formation of Waste Management
or Holdings, the Trust or the Trust.

         (e)      Holdings shall be liable under this Article VIII only for the
maximum amount of such liabilities that can be incurred under applicable law
without rendering this Article VIII voidable under applicable law relating to
fraudulent conveyance and fraudulent transfer, and not for any greater amount.
Accordingly, if any obligation under any provision under this Article VIII shall
be declared to be invalid or unenforceable in any respect or to any extent, it
is the stated intention and agreement of Holdings, the Trust and the Owner
Trustee that any balance of the obligation created by such provision and all
other obligations of Holdings under this Article VIII to the Trust shall remain
valid and enforceable, and that all sums not in excess of those permitted under
applicable law shall remain fully collectible by the Trust from Waste Management
or Holdings, as the case may be.

         (f)      The provisions of this Article VIII are made for the benefit
of the Trust and its successors and assigns, and may be enforced in good faith
by it from time to time against Holdings as often as occasion therefor may arise
and without requirement on the part of the Trust first to marshal any of their
claims or to exercise any of their rights against Waste Management or Holdings
or to exhaust any remedies available to them against Waste Management or
Holdings or to resort to any other source or means of obtaining payment of any
of the obligations hereunder or to elect any other remedy. The provisions of
this Article VIII shall remain in effect until all of the Guaranteed Obligations
shall have been paid in full or otherwise fully satisfied, and all Guaranteed
Obligations shall have been paid in accordance with their terms. If at any time,
any payment, or any part thereof, made in respect of any of the Guaranteed
Obligations, is rescinded or must otherwise be restored or returned by the Trust
upon the insolvency, bankruptcy or reorganization of Waste Management or
Holdings, or otherwise, the provisions of this Article VIII will forthwith be
reinstated in effect, as though such payment had not been made.

         SECTION 8.07. Final Payment and Performance. Until the final payment
and performance in full of all of the Obligations, Holdings shall not exercise
and Holdings hereby waives any rights Holdings may have against Waste Management
arising as a result of payment by Holdings hereunder, by way of subrogation,
reimbursement, restitution, contribution or otherwise, and will not prove any
claim in competition with the Trust in respect of any payment hereunder in any
bankruptcy, insolvency or reorganization case or proceedings of any nature;
Holdings will not claim any setoff, recoupment or counterclaim against Waste
Management in respect of any liability of Waste Management to Holdings; and
Holdings waives any benefit of and any right to participate in any collateral
security which may be held by the Trust.

         SECTION 8.08. Subrogation; Subordination. The payment of any amounts
due with respect to any indebtedness of Waste Management for money borrowed or
credit received now or hereafter owed to Holdings is hereby subordinated to the
prior payment in full of all of the Obligations. Holdings agrees that, after the
occurrence of any default in the payment or

                                       29
<PAGE>

performance of any of the Obligations, Holdings will not demand, sue for or
otherwise attempt to collect any such indebtedness of Waste Management to
Holdings until all of the Obligations shall have been paid in full. If,
notwithstanding the foregoing sentence, Holdings shall collect, enforce or
receive any amounts in respect of such indebtedness while any Obligations are
still outstanding, such amounts shall be collected, enforced and received by
Holdings as trustee for the Trust and be paid over to the Trust upon an Event of
Default on account of the Obligations without affecting in any manner the
liability of Holdings under the other provisions hereof.

         SECTION 8.09. Release of Guaranty. The Trust and the Owner Trustee
hereby agree that the foregoing Holdings Guaranty shall remain in full force and
effect until the occurrence of either (a) the consolidation or merger of
Holdings into Waste Management or its successors, (b) the consolidation or
merger of Waste Management or its successors into Holdings, or (c) the release
of Holdings from all other guarantees of Waste Management's obligations under
Waste Management's existing credit facilities or other senior indebtedness, at
which time the foregoing Holdings Guaranty shall be concurrently released
without any further action on the part of the Trust or the Owner Trustee.

                                       30
<PAGE>

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

                                 WASTE MANAGEMENT, INC.

                                 By: /s/Waste Management, Inc.
                                     -------------------------

                                 WASTE MANAGEMENT HOLDINGS, INC.
                                 (for the limited purpose of Article VIII)

                                 By: /s/ Waste Management Holdings, Inc.
                                     -----------------------------------

                                 OAKMONT ASSET TRUST
                                 By: The Bank of New York (Delaware) not in its
                                 individual capacity but solely as Owner Trustee

                                 By: /s/ The Bank of New York (Delaware)
                                     -----------------------------------

                                       31<PAGE>

                                                                   EXHIBIT 10.30

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into on
this 31st day of October, 2003 by and between Waste Management, Inc. (the
"Company"), and RICK L WITTENBRAKER (the "Executive").

         1.       EMPLOYMENT AND TERMINATION OF PREVIOUS EMPLOYMENT AGREEMENT.

         The Company shall employ Executive, and Executive shall be employed by
the Company upon the terms and subject to the conditions set forth in this
Agreement.

         2.       TERM OF EMPLOYMENT.

         The period of Executive's employment under this Agreement shall
commence on November 10, 2003 ("Employment Date"), and shall continue for a
period of two (2) years thereafter, and shall automatically be renewed for
successive one (1) year periods thereafter, unless Executive's employment is
terminated in accordance with Section 5 below. The period during which Executive
is employed hereunder shall be referred to as the "Employment Period." This
offer is subject to the successful completion of background check and drug
screen.

         3.       DUTIES AND RESPONSIBILITIES.

         (a)      Executive shall serve as the Senior Vice President, General
Counsel & Chief Compliance Officer. In such capacity, Executive shall perform
such duties and have the power, authority, and functions commensurate with such
position in similarly-sized public companies, and have and possess such other
authority and functions consistent with such position as may be assigned to
Executive from time to time by the Chief Executive Officer, President, Chief
Administrative Officer, or the Board of Directors.

         (b)      Executive shall devote substantially all of his working time,
attention and energies to the business of the Company, and its affiliated
entities. Executive may make and manage his personal investments (provided such
investments in other activities do not violate, in any material respect, the
provisions of Section 8 of this Agreement), be involved in charitable and
professional activities, and, with the prior written consent of the Board of
Directors, serve on boards of other for profit entities, provided such
activities do not materially interfere with the performance of his duties
hereunder (however, the Board does not typically allow officers to serve on more
than one public company board at a time).

         4.       COMPENSATION AND BENEFITS.

         (a)      BASE SALARY. During the Employment Period, the Company shall
pay Executive a base salary at the annual rate of FOUR HUNDRED THOUSAND DOLLARS
($400,000.00) per year, or such higher rate as may be determined from time to
time by the Company ("Base Salary"). Such Base Salary shall be paid in
accordance with the Company's standard payroll practice for its executive
officers. Once increased, Base Salary shall not be reduced.

<PAGE>

         (b)      ANNUAL BONUS. During the Employment Period, Executive will be
entitled to participate in an annual incentive compensation plan of the Company,
as established by the Compensation Committee of the Board of Directors from time
to time. The Executive's target annual bonus will be Seventy-Five percent (75%)
of his Base Salary in effect for such year (the "Target Bonus"), and his actual
annual bonus may range from 0% to 150% (two times Target Bonus), and will be
determined based upon (i) the achievement of certain corporate performance
goals, as may be established and approved from time to time by the Compensation
Committee of the Board of Directors, and (ii) the achievement of personal
performance goals as may be established by the Company's Chief Executive
Officer, President, Chief Administrative Officer, or the Board of Directors.
Executive's bonus for 2003 will not be prorated, and will be calculated as if
Executive was employed during the full year of 2003.

         (c)      STOCK OPTIONS. Effective on or about the Employment Date,
Executive shall be granted a stock option for One Hundred Thousand (100,000)
shares of common stock of Waste Management, Inc., with one-fourth (1/4) of such
options vesting on each of the next four (4) anniversaries of the grant date,
subject to the approval of the Compensation Committee of the Board of Directors.
The exercise price shall be the fair market value on the date of grant of the
option.

         The award, vesting, and exercise of all options shall be subject to and
governed by the provisions of the applicable Waste Management, Inc. Stock
Incentive Plan. Executive shall be eligible to considered for additional stock
option grants under the Company's annual stock option award program as
administered by, and at the discretion of, the Compensation Committee of the
Board of Directors.

         (d)      BENEFIT PLANS AND VACATION. Subject to the terms of such
plans, Executive shall be eligible to participate in or receive benefits under
any pension plan, profit sharing plan, salary deferral plan, medical and dental
benefits plan, life insurance plan, short-term and long-term disability plans,
or any other health, welfare or fringe benefit plan, generally made available by
the Company to similarly-situated executive employees. The Company shall not be
obligated to institute, maintain, or refrain from changing, amending, or
discontinuing any benefit plan, or perquisite, so long as such changes are
similarly applicable to similarly situated employees generally. Executive will
be eligible to participate in the Company's 401(k) Plan and health and welfare
benefit plans after ninety (90) days of employment. Executive will be entitled
to be reimbursed for COBRA expenses incurred by Executive to continue the
current health insurance for himself and his family at his existing employer
from the date of commencement of employment through the initial ninety (90) day
waiting period.

         During the Employment Period, Executive shall be entitled to vacation
each year in accordance with the Company's policies in effect from time to time,
but in no event less than four (4) weeks paid vacation per calendar year.

         (e)      EXPENSE REIMBURSEMENT. The Company shall promptly reimburse
Executive for the ordinary and necessary business expenses incurred by Executive
in the performance of the duties hereunder in accordance with the Company's
customary practices applicable to its executive officers.

                                        2

<PAGE>

         (f)      OTHER PERQUISITES. Executive shall be entitled to all
perquisites provided to Senior Vice Presidents of the Company as approved by the
Compensation Committee of the Board of Directors, and as they may exist from
time to time, including the following:

                  1. Automobile allowance at the annual rate of Twelve Thousand
Dollars ($12,000.00), payable in accordance with the Company's standard payroll
practice for its executive officers and prorated in any year that Executive does
not work a full calendar year;

                  2. Financial planning services at actual cost, and not to
exceed Fifteen Thousand Dollars ($15,000.00) annually;

                  3. Social Organization Initiation Fees and Dues with a benefit
of a one time initiation fee at actual cost but not to exceed ten percent (10%)
of Executive's Base Salary, and dues at actual cost but not to exceed $500 per
month; and

                  4. An annual physical examination on a program designated by
the Company.

         5.       TERMINATION OF EMPLOYMENT.

         Executive's employment hereunder may be terminated during the
Employment Period under the following circumstances:

         (a)      DEATH. Executive's employment hereunder shall terminate upon
Executive's death.

         (b)      TOTAL DISABILITY. The Company may terminate Executive's
employment hereunder upon Executive becoming "Totally Disabled." For purposes of
this Agreement, Executive shall be considered "Totally Disabled" if Executive
has been physically or mentally incapacitated so as to render Executive
incapable of performing the essential functions of Executive's position with or
without reasonable accommodation. Executive's receipt of disability benefits
under the Company's long-term disability plan or receipt of Social Security
disability benefits shall be deemed conclusive evidence of Total Disability for
purpose of this Agreement; provided, however, that in the absence of Executive's
receipt of such long-term disability benefits or Social Security benefits, the
Company's Board of Directors may, in its reasonable discretion (but based upon
appropriate medical evidence), determine that Executive is Totally Disabled.

         (c)      TERMINATION BY THE COMPANY FOR CAUSE. The Company may
terminate Executive's employment hereunder for "Cause" at any time after
providing a Notice of Termination for Cause to Executive.

         (i)      For purposes of this Agreement, the term "Cause" means any of
                  the following: (A) willful or deliberate and continual refusal
                  to perform Executive's employment duties reasonably requested
                  by the Company after receipt of written notice to Executive of
                  such failure to perform, specifying such failure (other than
                  as a result of Executive's sickness, illness or injury) and
                  Executive fails to cure such nonperformance within ten (10)
                  days of receipt of said written notice; (B) breach

                                        3

<PAGE>

                  of any statutory or common law duty of loyalty to the Company;
                  (C) has been convicted of, or pleaded nolo contendre to, any
                  felony; (D) willfully or intentionally caused material injury
                  to the Company, its property, or its assets; (E) disclosed to
                  unauthorized person(s) proprietary or confidential information
                  of the Company; or (F) breach of any of the covenants set
                  forth in Section 8 hereof.

         (ii)     For purposes of this Agreement, the phrase "Notice of
                  Termination for Cause" shall mean a written notice that shall
                  indicate the specific termination provision in Section 5(c)(i)
                  relied upon, and shall set forth in reasonable detail the
                  facts and circumstances which provide the basis for
                  termination for Cause. Further, a Notification of Termination
                  for Cause shall be required to include a copy of a resolution
                  duly adopted by at least two-thirds (2/3) of the entire
                  membership of the Board of Directors at a meeting of the Board
                  which was called for the purpose of considering such
                  employment termination, and at which Executive and his
                  representative had the right to attend and address the Board,
                  finding that, in the good faith belief of the Board, Executive
                  engaged in conduct set forth in Section 5(c)(i) herein and
                  specifying the particulars thereof in reasonable detail. The
                  date of termination for Cause shall be the date indicated in
                  the Notice of Termination for Cause. Any purported termination
                  for Cause which is held by an arbitrator not to have been
                  based on the grounds set forth in this Agreement or not to
                  have followed the procedures set forth in this Agreement shall
                  be deemed a termination by the Company without Cause.

         (d)      VOLUNTARY TERMINATION BY EXECUTIVE. Executive may terminate
his employment hereunder with or without Good Reason at any time upon written
notice to the Company.

         (i)      A termination for "Good Reason" means a resignation of
                  employment by Executive by written notice ("Notice of
                  Termination for Good Reason") given to the Company's Chief
                  Executive Officer within ninety (90) days after the occurrence
                  of the Good Reason event, unless such circumstances are
                  substantially corrected prior to the date of termination
                  specified in the Notice of Termination for Good Reason. For
                  purposes of this Agreement, "Good Reason" shall mean the
                  occurrence or failure to cause the occurrence, as the case may
                  be, without Executive's express written consent, of any of the
                  following circumstances: (A) the Company substantially changes
                  Executive's core duties or removes Executive's responsibility
                  for those core duties, so as to effectively cause Executive to
                  no longer be performing the duties of his position (except in
                  each case in connection with the termination of Executive's
                  employment for Cause or Total Disability or as a result of
                  Executive's death, or temporarily as a result of Executive's
                  illness or other absence); provided that if the Company
                  becomes a fifty percent or more subsidiary of any other
                  entity, Executive shall be deemed to have a substantial change
                  in the core duties of his position unless he is also Senior
                  Vice-President of the ultimate parent entity; (B) removal or
                  the non-reelection of the Executive from the officer position
                  with the Company specified herein, or removal of the Executive
                  from any of his then officer positions; (C) any material
                  breach by the Company of any provision of this Agreement,
                  including without

                                        4

<PAGE>

                  limitation Section 10 hereof; or (D) failure of any successor
                  to the Company (whether direct or indirect and whether by
                  merger, acquisition, consolidation or otherwise) to assume in
                  a writing delivered to Executive upon the assignee becoming
                  such, the obligations of the Company hereunder; or (E) the
                  reassignment of Executive to a geographic location more than
                  fifty (50) miles from his then business office location.

         (ii)     A "Notice of Termination for Good Reason" shall mean a notice
                  that shall indicate the specific termination provision relied
                  upon and shall set forth in reasonable detail the facts and
                  circumstances claimed to provide a basis for Termination for
                  Good Reason. The failure by Executive to set forth in the
                  Notice of Termination for Good Reason any facts or
                  circumstances which contribute to the showing of Good Reason
                  shall not waive any right of Executive hereunder or preclude
                  Executive from asserting such fact or circumstance in
                  enforcing his rights hereunder. The Notice of Termination for
                  Good Reason shall provide for a date of termination not less
                  than ten (10) nor more than sixty (60) days after the date
                  such Notice of Termination for Good Reason is given, provided
                  that in the case of the events set forth in Sections
                  5(d)(i)(A) or (B), the date may be five (5) business days
                  after the giving of such notice.

         (e)      TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may
terminate Executive's employment hereunder without Cause at any time upon
written notice to Executive.

         (f)      EFFECT OF TERMINATION. Upon any termination of employment for
any reason, Executive shall immediately resign from all Board memberships and
other positions with the Company or any of its subsidiaries held by him at such
time.

         6.       COMPENSATION FOLLOWING TERMINATION OF EMPLOYMENT.

         In the event that Executive's employment hereunder is terminated,
Executive shall be entitled to the following compensation and benefits upon such
termination:

         (a)      TERMINATION BY REASON OF DEATH. In the event that Executive's
employment is terminated by reason of Executive's death, the Company shall pay
the following amounts to Executive's beneficiary or estate:

         (i)      Any accrued but unpaid Base Salary for services rendered to
                  the date of death, any accrued but unpaid expenses required to
                  be reimbursed under this Agreement, any vacation accrued to
                  the date of termination, any earned but unpaid bonuses for any
                  prior period, and, to the extent not otherwise paid, a
                  pro-rata bonus or incentive compensation payment to the extent
                  payments are awarded to senior executives of the Company and
                  paid at the same time as senior executives are paid.

         (ii)     Any benefits to which Executive may be entitled pursuant to
                  the plans, policies and arrangements (including those referred
                  to in Section 4(d) hereof), as determined and paid in
                  accordance with the terms of such plans, policies and

                                        5

<PAGE>

                  arrangements.

         (iii)    An amount equal to the Base Salary (at the rate in effect as
                  of the date of Executive's death) which would have been
                  payable to Executive if Executive had continued in employment
                  for two additional years. Said payments will be paid to
                  Executive's estate or beneficiary at the same time and in the
                  same manner as such compensation would have been paid if
                  Executive had remained in active employment.

         (iv)     As of the date of termination by reason of Executive's death,
                  stock options previously awarded to Executive as of the date
                  of death shall be fully vested, and Executive's estate or
                  beneficiary shall have up to one (1) year from the date of
                  death to exercise all such previously-awarded options,
                  provided that in no event will any option be exercisable
                  beyond its term. No stock options contemplated by this
                  Agreement, but not yet awarded to Executive as of the time of
                  his death, shall be granted.

         (b)      TERMINATION BY REASON OF TOTAL DISABILITY. In the event that
Executive's employment is terminated by reason of Executive's Total Disability
as determined in accordance with Section 5(b), the Company shall pay the
following amounts to Executive:

         (i)      Any accrued but unpaid Base Salary for services rendered to
                  the date of termination, any accrued but unpaid expenses
                  required to be reimbursed under this Agreement, any vacation
                  accrued to the date of termination, and any earned but unpaid
                  bonuses for any prior period. Executive shall also be eligible
                  for a pro-rata bonus or incentive compensation payment to the
                  extent such awards are made to senior executives of the
                  Company for the year in which Executive is terminated, and to
                  the extent not otherwise paid to the Executive.

         (ii)     Any benefits to which Executive may be entitled pursuant to
                  the plans, policies and arrangements (including those referred
                  to in Section 4(d) hereof) shall be determined and paid in
                  accordance with the terms of such plans, policies and
                  arrangements.

         (iii)    An amount equal to the Base Salary (at the rate in effect as
                  of the date of Executive's Total Disability) which would have
                  been payable to Executive if Executive had continued in active
                  employment for two years following termination of employment,
                  less any payments under any long-term disability plan or
                  arrangement paid for by the Company. Payment shall be made at
                  the same time and in the same manner as such compensation
                  would have been paid if Executive had remained in active
                  employment until the end of such period.

         (iv)     As of the date of termination by reason of Executive's Total
                  Disability, stock options previously awarded to Executive as
                  of the date of termination shall be fully vested, and
                  Executive or his legal guardian shall have up to one (1) year
                  from the date of termination to exercise all such
                  previously-awarded options, provided that in no event will any
                  option be exercisable beyond its term. No

                                        6

<PAGE>

                  stock options contemplated by this Agreement, but not yet
                  awarded to Executive as of the time of his employment
                  termination, shall be granted.

         (c)      TERMINATION FOR CAUSE. In the event that Executive's
employment is terminated by the Company for Cause, the Company shall pay the
following amounts to Executive:

         (i)      Any accrued but unpaid Base Salary for services rendered to
                  the date of termination, any accrued but unpaid expenses
                  required to be reimbursed under this Agreement, any vacation
                  accrued to the date of termination, and any earned but unpaid
                  bonuses for any prior period.

         (ii)     Any benefits to which Executive may be entitled pursuant to
                  the plans, policies and arrangements (including those referred
                  to in Section 4(d) hereof up to the date of termination) shall
                  be determined and paid in accordance with the terms of such
                  plans, policies and arrangements.

         (iii)    All options, whether vested or not vested prior to the date of
                  such termination of employment shall be automatically
                  cancelled on the date of employment termination. However, it
                  is expressly understood and agreed that Executive would have
                  no obligation to repay or otherwise reimburse the Company for
                  funds received as a result of Executive's having exercised any
                  previously-vested stock options prior to his employment
                  termination.

         (d)      VOLUNTARY TERMINATION BY EXECUTIVE. In the event that
Executive voluntarily terminates employment other than for Good Reason, the
Company shall pay the following amounts to Executive:

         (i)      Any accrued but unpaid Base Salary for services rendered to
                  the date of termination, any accrued but unpaid expenses
                  required to be reimbursed under this Agreement, any vacation
                  accrued to the date of termination, and any earned but unpaid
                  bonuses for any prior period.

         (ii)     Any benefits to which Executive may be entitled pursuant to
                  the plans, policies and arrangements (including those referred
                  to in Section 4(d) hereof up to the date of termination) shall
                  be determined and paid in accordance with the terms of such
                  plans, policies and arrangements.

         (iii)    Any stock options that have not then vested shall be
                  automatically cancelled as of that date, and Executive shall
                  have ninety (90) days following the date of termination of
                  employment to exercise any previously vested but unexercised
                  options; provided that in no event will any option be
                  exercisable beyond its term. No stock options contemplated by
                  this Agreement, but not yet awarded to Executive as of the
                  time of his employment termination, shall be granted.

         (e)      TERMINATION BY THE COMPANY WITHOUT CAUSE; TERMINATION BY
EXECUTIVE FOR GOOD REASON. In the event that Executive's employment is
terminated by the Company for

                                        7

<PAGE>

reasons other than death, Total Disability or Cause, or Executive terminates his
employment for Good Reason, the Company shall pay the following amounts to
Executive:

         (i)      Any accrued but unpaid Base Salary for services rendered to
                  the date of termination, any accrued but unpaid expenses
                  required to be reimbursed under this Agreement, any vacation
                  accrued to the date of termination, and any earned but unpaid
                  bonuses for any prior period.

         (ii)     Any benefits to which Executive may be entitled pursuant to
                  the plans, policies and arrangements referred to in Section
                  4(d) hereof shall be determined and paid in accordance with
                  the terms of such plans, policies and arrangements.

         (iii)    An amount equal to two times the sum of Executive's Base
                  Salary plus his Target Annual Bonus (in each case as then in
                  effect), of which one-half shall be paid in a lump sum within
                  ten (10) days after such termination and one-half shall be
                  paid during the two (2) year period beginning on the date of
                  Executive's termination and shall be paid at the same time and
                  in the same manner as Base Salary would have been paid if
                  Executive had remained in active employment until the end of
                  such period.

         (iv)     The Company at its expense will continue for Executive and
                  Executive's spouse and dependents, all health benefit plans,
                  programs or arrangements, whether group or individual,
                  disability, and other benefit plans, in which Executive was
                  entitled to participate at any time during the twelve-month
                  period prior to the date of termination, until the earliest to
                  occur of (A) two years after the date of termination; (B)
                  Executive's death (provided that benefits provided to
                  Executive's spouse and dependents shall not terminate upon
                  Executive's death); or (C) with respect to any particular
                  plan, program or arrangement, the date Executive becomes
                  eligible to participate in a comparable benefit provided by a
                  subsequent employer. In the event that Executive's continued
                  participation in any such Company plan, program, or
                  arrangement is prohibited, the Company will arrange to provide
                  Executive with benefits substantially similar to those which
                  Executive would have been entitled to receive under such plan,
                  program, or arrangement, for such period on a basis which
                  provides Executive with no additional after tax cost.

         (v)      Executive shall be eligible for a bonus or incentive
                  compensation payment, at the same time, on the same basis, and
                  to the same extent payments are made to senior executives of
                  the Company, pro-rated for the fiscal year in which the
                  Executive is terminated.

         (vi)     Executive shall continue to vest in all stock option awards or
                  restricted stock awards over the two (2) year period
                  commencing on the date of such termination. Executive shall
                  have two (2) years and six (6) months after the date of
                  termination to exercise all options to the extent then vested,
                  provided that in no event may any option be exercisable beyond
                  its term.

                                        8

<PAGE>

         (f)      NO OTHER BENEFITS OR COMPENSATION. Except as may be provided
under this Agreement, under the terms of any incentive compensation, employee
benefit, or fringe benefit plan applicable to Executive at the time of
Executive's termination or resignation of employment, Executive shall have no
right to receive any other compensation, or to participate in any other plan,
arrangement or benefit, with respect to future periods after such termination or
resignation.

         (g)      NO MITIGATION; NO SET-OFF. In the event of any termination of
employment hereunder, Executive shall be under no obligation to seek other
employment, and there shall be no offset against any amounts due Executive under
this Agreement on account of any remuneration attributable to any subsequent
employment that Executive may obtain. The amounts payable hereunder shall not be
subject to setoff, counterclaim, recoupment, defense or other right which the
Company may have against the Executive or others, except upon obtaining by the
Company of a final non-appealable judgment against Executive.

         7.       RESIGNATION BY EXECUTIVE FOR GOOD REASON AND COMPENSATION
PAYABLE FOLLOWING CHANGE IN CONTROL.

         (a)      RESIGNATION FOR GOOD REASON FOLLOWING CHANGE IN CONTROL. In
the event a "Change in Control" occurs and Executive terminates his employment
for Good Reason thereafter, or the Company terminates Executive's employment
other than for Cause, or such termination for Good Reason or without Cause
occurs in contemplation of such Change in Control (any termination within six
(6) months prior to such Change in Control being presumed to be in contemplation
unless rebutted by clear and demonstrable evidence to the contrary), the Company
shall pay the following amounts to Executive:

         (i)      The payments and benefits provided for in Section 6(e), except
                  that (A) the amount and period with respect to which severance
                  is calculated pursuant to Section 6(e)(iii) will be three (3)
                  years and the amount shall be paid in a lump-sum and (B) the
                  benefit continuation period in Section 6(e)(iv) shall be for
                  three (3) years.

         (ii)     In lieu of Section 6(e)(vi), Executive will be 100% vested in
                  all benefits, awards, and grants (including stock option
                  grants and all other stock awards, all of such stock options
                  being exercisable for three (3) years following Termination,
                  provided that in no event will any option be exercisable
                  beyond its term) accrued but unpaid as of the date of
                  termination under any non-qualified pension plan, supplemental
                  and/or incentive compensation or bonus plans, in which
                  Executive was a participant as of the date of termination.
                  Executive shall also receive a bonus or incentive compensation
                  payment (the "bonus payment"), payable at 100% of the maximum
                  bonus available to Executive, pro-rated as of the effective
                  date of the termination. The bonus payment shall be payable
                  within five (5) days after the effective date of Executive's
                  termination. Except as may be provided under this Section 7 or
                  under the terms of any incentive compensation, employee
                  benefit, or fringe benefit plan applicable to Executive at the
                  time of Executive's termination of employment, Executive shall
                  have no right to receive any other

                                        9

<PAGE>

                  compensation, or to participate in any other plan, arrangement
                  or benefit, with respect to future periods after such
                  resignation or termination.

         (b)      CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

         (i)      In the event that the Executive shall become entitled to
                  payments and/or benefits provided by this Agreement or any
                  other amounts in the "nature of compensation" (whether
                  pursuant to the terms of this Agreement or any other plan,
                  arrangement or agreement with the Company, any person whose
                  actions result in a change of ownership or effective control
                  covered by Section 280G(b)(2) of the Code or any person
                  affiliated with the Company or such person) as a result of
                  such change in ownership or effective control (collectively
                  the "Company Payments"), and such Company Payments will be
                  subject to the tax (the "Excise Tax") imposed by Section 4999
                  of the Code (and any similar tax that may hereafter be imposed
                  by any taxing authority) the Company shall pay to the
                  Executive at the time specified in subsection (iv) below an
                  additional amount (the "Gross-up Payment") such that the net
                  amount retained by the Executive, after deduction of any
                  Excise Tax on the Company Payments and any U.S. federal,
                  state, and for local income or payroll tax upon the Gross-up
                  Payment provided for by this Section 7(b), but before
                  deduction for any U.S. federal, state, and local income or
                  payroll tax on the Company Payments, shall be equal to the
                  Company Payments.

         (ii)     For purposes of determining whether any of the Company
                  Payments and Gross-up Payments (collectively the "Total
                  Payments") will be subject to the Excise Tax and the amount of
                  such Excise Tax, (x) the Total Payments shall be treated as
                  "parachute payments" within the meaning of Section 280G(b)(2)
                  of the Code, and all "parachute payments" in excess of the
                  "base amount" (as defined under Code Section 280G(b)(3) of the
                  Code) shall be treated as subject to the Excise Tax, unless
                  and except to the extent that, in the opinion of the Company's
                  independent certified public accountants appointed prior to
                  any change in ownership (as defined under Code Section
                  280G(b)(2)) or tax counsel selected by such accountants (the
                  "Accountants") such Total Payments (in whole or in part)
                  either do not constitute "parachute payments," represent
                  reasonable compensation for services actually rendered within
                  the meaning of Section 280G(b)(4) of the Code in excess of the
                  "base amount" or are otherwise not subject to the Excise Tax,
                  and (y) the value of any non-cash benefits or any deferred
                  payment or benefit shall be determined by the Accountants in
                  accordance with the principles of Section 280G of the Code.

         (iii)    For purposes of determining the amount of the Gross-up
                  Payment, the Executive shall be deemed to pay U.S. federal
                  income taxes at the highest marginal rate of U.S. federal
                  income taxation in the calendar year in which the Gross-up
                  Payment is to be made and state and local income taxes at the
                  highest marginal rate of taxation in the state and locality of
                  the Executive's residence for the calendar year in which the
                  Company Payment is to be made, net of the maximum reduction in
                  U.S. federal income taxes which could be obtained from
                  deduction of such state and local taxes if paid in such year.
                  In the event that the Excise Tax is

                                       10

<PAGE>

                  subsequently determined by the Accountants to be less than the
                  amount taken into account hereunder at the time the Gross-up
                  Payment is made, the Executive shall repay to the Company, at
                  the time that the amount of such reduction in Excise Tax is
                  finally determined, the portion of the prior Gross-up Payment
                  attributable to such reduction (plus the portion of the
                  Gross-up Payment attributable to the Excise Tax and U.S.
                  federal, state and local income tax imposed on the portion of
                  the Gross-up Payment being repaid by the Executive if such
                  repayment results in a reduction in Excise Tax or a U.S.
                  federal, state and local income tax deduction), plus interest
                  on the amount of such repayment at the rate provided in
                  Section 1274(b)(2)(B) of the Code. Notwithstanding the
                  foregoing, in the event any portion of the Gross-up Payment to
                  be refunded to the Company has been paid to any U.S. federal,
                  state and local tax authority, repayment thereof (and related
                  amounts) shall not be required until actual refund or credit
                  of such portion has been made to the Executive, and interest
                  payable to the Company shall not exceed the interest received
                  or credited to the Executive by such tax authority for the
                  period it held such portion. The Executive and the Company
                  shall mutually agree upon the course of action to be pursued
                  (and the method of allocating the expense thereof) if the
                  Executive's claim for refund or credit is denied.

                  In the event that the Excise Tax is later determined by the
                  Accountant or the Internal Revenue Service to exceed the
                  amount taken into account hereunder at the time the Gross-up
                  Payment is made (including by reason of any payment the
                  existence or amount of which cannot be determined at the time
                  of the Gross-up Payment), the Company shall make an additional
                  Gross-up Payment in respect of such excess (plus any interest
                  or penalties payable with respect to such excess) at the time
                  that the amount of such excess is finally determined.

         (iv)     The Gross-up Payment or portion thereof provided for in
                  subsection (iii) above shall be paid not later than the
                  thirtieth (30th) day following an event occurring which
                  subjects the Executive to the Excise Tax; provided, however,
                  that if the amount of such Gross-up Payment or portion thereof
                  cannot be finally determined on or before such day, the
                  Company shall pay to the Executive on such day an estimate, as
                  determined in good faith by the Accountant, of the minimum
                  amount of such payments and shall pay the remainder of such
                  payments (together with interest at the rate provided in
                  Section 1274(b)(2)(B) of the Code), subject to further
                  payments pursuant to subsection (iii) hereof, as soon as the
                  amount thereof can reasonably be determined, but in no event
                  later than the ninetieth day after the occurrence of the event
                  subjecting the Executive to the Excise Tax. In the event that
                  the amount of the estimated payments exceeds the amount
                  subsequently determined to have been due, such excess shall
                  constitute a loan by the Company to the Executive, payable on
                  the fifth day after demand by the Company (together with
                  interest at the rate provided in Section 1274(b)(2)(B) of the
                  Code).

         (v)      In the event of any controversy with the Internal Revenue
                  Service (or other taxing authority) with regard to the Excise
                  Tax, the Executive shall permit the Company to control issues
                  related to the Excise Tax (at its expense), provided that such
                  issues do not potentially materially adversely affect the
                  Executive, but the

                                       11

<PAGE>

                  Executive shall control any other issues. In the event the
                  issues are interrelated, the Executive and the Company shall
                  in good faith cooperate so as not to jeopardize resolution of
                  either issue, but if the parties cannot agree the Executive
                  shall make the final determination with regard to the issues.
                  In the event of any conference with any taxing authority as to
                  the Excise Tax or associated income taxes, the Executive shall
                  permit the representative of the Company to accompany the
                  Executive, and the Executive and the Executive's
                  representative shall cooperate with the Company and its
                  representative.

         (vi)     The Company shall be responsible for all charges of the
                  Accountant.

         (vii)    The Company and the Executive shall promptly deliver to each
                  other copies of any written communications, and summaries of
                  any verbal communications, with any taxing authority regarding
                  the Excise Tax covered by this Section 7(b).

         (c)      CHANGE IN CONTROL. For purposes of this Agreement, "Change in
Control" means the occurrence of any of the following events:

         (i)      any Person is or becomes the Beneficial Owner, directly or
                  indirectly, of securities of the Company (not including in the
                  securities beneficially owned by such person any securities
                  acquired directly from the Company or its Affiliates)
                  representing twenty-five percent (25%) or more of the combined
                  voting power of the Company's then outstanding voting
                  securities;

         (ii)     the following individuals cease for any reason to constitute a
                  majority of the number of directors then serving: individuals
                  who, on the Employment Date, constitute the Board and any new
                  director (other than a director whose initial assumption of
                  office is in connection with an actual or threatened election
                  contest, including but not limited to a consent solicitation,
                  relating to the election of directors of the Company) whose
                  appointment or election by the Board or nomination for
                  election by the Company's stockholders was approved or
                  recommended by a vote of the at least two-thirds (2/3rds) of
                  the directors then still in office who either were directors
                  on the Employment Date or whose appointment, election or
                  nomination for election was previously so approved or
                  recommended;

         (iii)    there is a consummated merger or consolidation of the Company
                  or any direct or indirect subsidiary of the Company with any
                  other corporation, other than (A) a merger or consolidation
                  which would result in the voting securities of the Company
                  outstanding immediately prior thereto continuing to represent
                  (either by remaining outstanding or by being converted into
                  voting securities of the surviving or parent entity) more than
                  fifty percent (50%) of the combined voting power of the voting
                  securities of the Company or such surviving or parent entity
                  outstanding immediately after such merger or consolidation or
                  (B) a merger or consolidation effected to implement a
                  recapitalization of the Company (or similar transaction) in
                  which no Person, directly or indirectly, acquired twenty-five
                  percent (25%) or more of the combined voting power of the
                  Company's then

                                       12

<PAGE>

                  outstanding securities (not including in the securities
                  beneficially owned by such person any securities acquired
                  directly from the Company or its Affiliates); or

         (iv)     the stock holders of the Company approve a plan of complete
                  liquidation of the Company or there is consummated an
                  agreement for the sale or disposition by the Company of all or
                  substantially all of the Company's assets (or any transaction
                  having a similar effect), other than a sale or disposition by
                  the Company of all or substantially all of the Company's
                  assets to an entity, at least fifty percent (50%) of the
                  combined voting power of the voting securities of which are
                  owned by stockholders of the Company in substantially the same
                  proportions as their ownership of the Company immediately
                  prior to such sale.

         For purposes of this Section 7(c), the following terms shall have the
following meanings:

                  (i) "Affiliate" shall mean an affiliate of the Company, as
                  defined in Rule 12b-2 promulgated under Section 12 of the
                  Securities Exchange Act of 1934, as amended from time to time
                  (the "Exchange Act");

                  (ii) "Beneficial Owner" shall have the meaning set forth in
                  Rule 13d-3 under the Exchange Act;

                  (iii) "Person" shall have the meaning set forth in Section
                  3(a)(9) of the Exchange Act, as modified and used in Sections
                  13(d) and 14(d) thereof, except that such term shall not
                  include (1) the Company, (2) a trustee or other fiduciary
                  holding securities under an employee benefit plan of the
                  Company, (3) an underwriter temporarily holding securities
                  pursuant to an offering of such securities or (4) a
                  corporation owned, directly or indirectly, by the stockholders
                  of the Company in substantially the same proportions as their
                  ownership of shares of Common Stock of the Company.

         8.       COVENANTS

         (a)      COMPANY PROPERTY. All written materials, records, data, and
other documents prepared or possessed by Executive during Executive's employment
with the Company are the Company's property. All information, ideas, concepts,
improvements, discoveries, and inventions that are conceived, made, developed,
or acquired by Executive individually or in conjunction with others during
Executive's employment (whether during business hours and whether on the
Company's premises or otherwise) which relate to the Company's business,
products, or services are the Company's sole and exclusive property. All
memoranda, notes, records, files, correspondence, drawings, manuals, models,
specifications, computer programs, maps, and all other documents, data, or
materials of any type embodying such information, ideas, concepts, improvements,
discoveries, and inventions are the Company's property. At the termination of
Executive's employment with the Company for any reason, Executive shall return
all of the Company's documents, data, or other Company property to the Company.

         (b)      CONFIDENTIAL INFORMATION; NON-DISCLOSURE. Executive
acknowledges that the business of the Company is highly competitive and that the
Company has agreed to provide and

                                       13

<PAGE>

immediately will provide Executive with access to "Confidential Information"
relating to the business of the Company and its affiliates.

         For purposes of this Agreement, "Confidential Information" means and
includes the Company's confidential and/or proprietary information and/or trade
secrets that have been developed or used and/or will be developed and that
cannot be obtained readily by third parties from outside sources. Confidential
Information includes, by way of example and without limitation, the following
information regarding customers, employees, contractors, and the industry not
generally known to the public; strategies, methods, books, records, and
documents; technical information concerning products, equipment, services, and
processes; procurement procedures and pricing techniques; the names of and other
information concerning customers, investors, and business affiliates (such as
contact name, service provided, pricing for that customer, type and amount of
services used, credit and financial data, and/or other information relating to
the Company's relationship with that customer); pricing strategies and price
curves; positions, plans, and strategies for expansion or acquisitions; budgets;
customer lists; research; weather data; financial and sales data; trading
methodologies and terms; evaluations, opinions, and interpretations of
information and data; marketing and merchandising techniques; prospective
customers' names and marks; grids and maps; electronic databases; models;
specifications; computer programs; internal business records; contracts
benefiting or obligating the Company; bids or proposals submitted to any third
party; technologies and methods; training methods and training processes;
organizational structure; personnel information, including salaries of
personnel; payment amounts or rates paid to consultants or other service
providers; and other such confidential or proprietary information. Information
need not qualify as a trade secret to be protected as Confidential Information
under this Agreement, and the authorized and controlled disclosure of
Confidential Information to authorized parties by Company in the pursuit of its
business will not cause the information to lose its protected status under this
Agreement. Executive acknowledges that this Confidential Information constitutes
a valuable, special, and unique asset used by the Company or its affiliates in
their businesses to obtain a competitive advantage over their competitors.
Executive further acknowledges that protection of such Confidential Information
against unauthorized disclosure and use is of critical importance to the Company
and its affiliates in maintaining their competitive position.

         Executive also will have access to, or knowledge of, Confidential
Information of third parties, such as actual and potential customers, suppliers,
partners, joint venturers, investors, financing sources, and the like, of the
Company and its affiliates.

         The Company also agrees to provide Executive with one or more of the
following: access to Confidential Information; specialized training regarding
the Company's methodologies and business strategies, and/or support in the
development of goodwill such as introductions, information and reimbursement of
customer development expenses consistent with Company policy. The foregoing is
not contingent on continued employment, but is contingent upon Executive's use
of the Confidential Information access, specialized training, and goodwill
support provided by Company for the exclusive benefit of the Company and upon
Executive's full compliance with the restrictions on Executive's conduct
provided for in this Agreement.

         In addition to the requirements set forth in Section 5(c)(i), Executive
agrees that Executive will not after Executive's employment with the Company,
make any unauthorized

                                       14

<PAGE>

disclosure of any then Confidential Information or specialized training of the
Company or its affiliates, or make any use thereof, except in the carrying out
of his employment responsibilities hereunder. Executive also agrees to preserve
and protect the confidentiality of third party Confidential Information to the
same extent, and on the same basis, as the Company's Confidential Information.

         (c)      UNFAIR COMPETITION RESTRICTIONS. Upon Executive's Employment
Date, the Company agrees to and shall provide Executive with immediate access to
Confidential Information. Ancillary to the rights provided to Executive
following employment termination, the Company's provision of Confidential
Information, specialized training, and/or goodwill support to Executive, and
Executive's agreements, regarding the use of same, and in order to protect the
value of the above-referenced stock options, any restricted stock, training,
goodwill support and/or the Confidential Information described above, the
Company and Executive agree to the following provisions against unfair
competition. Executive agrees that for a period of two (2) years following the
termination of employment for any reason ("Restricted Term"), Executive will
not, directly or indirectly, for Executive or for others, anywhere in the United
States (including all parishes in Louisiana, and Puerto Rico) (the "Restricted
Area") do the following, unless expressly authorized to do so in writing by the
Chief Executive Officer of the Company:

                  Engage in, or assist any person, entity, or business engaged
                  in, the selling or providing of products or services that
                  would displace the products or services that (i) the Company
                  is currently in the business of providing and was in the
                  business of providing, or was planning to be in the business
                  of providing, at the time Executive was employed with the
                  Company, and (ii) that Executive had involvement in or
                  received Confidential Information about in the course of
                  employment; the foregoing is expressly understood to include,
                  without limitation, the business of the collection, transfer,
                  recycling and resource recovery, or disposal of solid waste,
                  hazardous or other waste, including the operation of
                  waste-to-energy facilities.

         It is further agreed that during the Restricted Term, Executive cannot
engage in any of the enumerated prohibited activities in the Restricted Area by
means of telephone, telecommunications, satellite communications,
correspondence, or other contact from outside the Restricted Area. Executive
further understands that the foregoing restrictions may limit his ability to
engage in certain businesses during the Restricted Term, but acknowledges that
these restrictions are necessary to protect the Confidential Information the
Company has provided to Executive.

         A failure to comply with the foregoing restrictions will create a
presumption that Executive is engaging in unfair competition. Executive agrees
that this Section defining unfair competition with the Company does not prevent
Executive from using and offering the skills that Executive possessed prior to
receiving access to Confidential Information, confidential training, and
knowledge from the Company. This Agreement creates an advance approval process,
and nothing herein is intended, or will be construed as, a general restriction
against the pursuit of

                                       15

<PAGE>

lawful employment in violation of any controlling state or federal laws.
Executive shall be permitted to engage in activities that would otherwise be
prohibited by this covenant if such activities are determined in the sole
discretion of the Chief Executive Officer of the Company to be no material
threat to the legitimate business interests of the Company.

         (d)      NON-SOLICITATION OF CUSTOMERS. For a period of two (2) years
following the termination of employment for any reason, Executive will not call
on, service, or solicit competing business from customers of the Company or its
affiliates whom Executive, within the previous twelve (12) months, (i) had or
made contact with, or (ii) had access to information and files about, or induce
or encourage any such customer or other source of ongoing business to stop doing
business with Company.

         (e)      NON-SOLICITATION OF EMPLOYEES. During Executive's employment,
and for a period of two (2) years following the termination of employment for
any reason, Executive will not, either directly or indirectly, call on, solicit,
encourage, or induce any other employee or officer of the Company or its
affiliates whom Executive had contact with, knowledge of, or association within
the course of employment with the Company to terminate his or her employment,
and will not assist any other person or entity in such a solicitation.

         (f)      NON-DISPARAGEMENT. Executive covenants and agrees that
Executive shall not engage in any pattern of conduct that involves the making or
publishing of written or oral statements or remarks (including, without
limitation, the repetition or distribution of derogatory rumors, allegations,
negative reports or comments) which are disparaging, deleterious or damaging to
the integrity, reputation or good will of the Company, its management, or of
management of corporations affiliated with the Company.

         9.       ENFORCEMENT OF COVENANTS.

         (a)      TERMINATION OF EMPLOYMENT AND FORFEITURE OF COMPENSATION.
Executive agrees that any breach by Executive of any of the covenants set forth
in Section 8 hereof during Executive's employment by the Company, shall be
grounds for immediate dismissal of Executive for Cause pursuant to Section
5(c)(i), which shall be in addition to and not exclusive of any and all other
rights and remedies the Company may have against Executive.

         (b)      RIGHT TO INJUNCTION. Executive acknowledges that a breach of
the covenants set forth in Section 8 hereof will cause irreparable damage to the
Company with respect to which the Company's remedy at law for damages will be
inadequate. Therefore, in the event of breach or anticipatory breach of the
covenants set forth in this section by Executive, Executive and the Company
agree that the Company shall be entitled to seek the following particular forms
of relief, in addition to remedies otherwise available to it at law or equity:
(A) injunctions, both preliminary and permanent, enjoining or restraining such
breach or anticipatory breach and Executive hereby consents to the issuance
thereof forthwith and without bond by any court of competent jurisdiction; and
(B) recovery of all reasonable sums as determined by a court of competent
jurisdiction expended and costs, including reasonable attorney's fees, incurred
by the Company to enforce the covenants set forth in this section.

                                       16

<PAGE>

         (c)      SEPARABILITY OF COVENANTS. The covenants contained in Section
8 hereof constitute a series of separate but ancillary covenants, one for each
applicable State in the United States and the District of Columbia, and one for
each applicable foreign country. If in any judicial proceeding, a court shall
hold that any of the covenants set forth in Section 8 exceed the time,
geographic, or occupational limitations permitted by applicable laws, Executive
and the Company agree that such provisions shall and are hereby reformed to the
maximum time, geographic, or occupational limitations permitted by such laws.
Further, in the event a court shall hold unenforceable any of the separate
covenants deemed included herein, then such unenforceable covenant or covenants
shall be deemed eliminated from the provisions of this Agreement for the purpose
of such proceeding to the extent necessary to permit the remaining separate
covenants to be enforced in such proceeding. Executive and the Company further
agree that the covenants in Section 8 shall each be construed as a separate
agreement independent of any other provisions of this Agreement, and the
existence of any claim or cause of action by Executive against the Company
whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of any of the covenants of Section 8.

         10.      INDEMNIFICATION.

         The Company shall indemnify and hold harmless Executive to the fullest
extent permitted by Delaware law for any action or inaction of Executive while
serving as an officer and director of the Company or, at the Company's request,
as an officer or director of any other entity or as a fiduciary of any benefit
plan. This provision includes the obligation and undertaking of the Executive to
reimburse the Company for any fees advanced by the Company on behalf of the
Executive should it later be determined that Executive was not entitled to have
such fees advanced by the Company under Delaware law. The Company shall cover
the Executive under directors and officers liability insurance both during and,
while potential liability exists, after the Employment Period in the same amount
and to the same extent as the Company covers its other officers and directors.

         11.      DISPUTES AND PAYMENT OF ATTORNEY'S FEES.

         If at any time during the term of this Agreement or afterwards there
should arise any dispute as to the validity, interpretation or application of
any term or condition of this Agreement, the Company agrees, upon written demand
by Executive (and Executive shall be entitled upon application to any court of
competent jurisdiction, to the entry of a mandatory injunction, without the
necessity of posting any bond with respect thereto, compelling the Company) to
promptly provide sums sufficient to pay on a current basis (either directly or
by reimbursing Executive) Executive's costs and reasonable attorney's fees
(including expenses of investigation and disbursements for the fees and expenses
of experts, etc.) incurred by Executive in connection with any such dispute or
any litigation, provided that Executive shall repay any such amounts paid or
advanced if Executive is not the prevailing party with respect to at least one
material claim or issue in such dispute or litigation. The provisions of this
Section 11, without implication as to any other section hereof, shall survive
the expiration or termination of this Agreement and of Executive's employment
hereunder.

                                       17

<PAGE>

         12.      WITHHOLDING OF TAXES.

         The Company may withhold from any compensation and benefits payable
under this Agreement all applicable federal, state, local, or other taxes.

         13.      SOURCE OF PAYMENTS.

         All payments provided under this Agreement, other than payments made
pursuant to a plan which provides otherwise, shall be paid from the general
funds of the Company, and no special or separate fund shall be established, and
no other segregation of assets made, to assure payment. Executive shall have no
right, title or interest whatever in or to any investments which the Company may
make to aid the Company in meeting its obligations hereunder. To the extent that
any person acquires a right to receive payments from the Company hereunder, such
right shall be no greater than the right of an unsecured creditor of the
Company.

         14.      ASSIGNMENT.

         Except as otherwise provided in this Agreement, this Agreement shall
inure to the benefit of and be binding upon the parties hereto and their
respective heirs, representatives, successors and assigns. This Agreement shall
not be assignable by Executive (but any payments due hereunder which would be
payable at a time after Executive's death shall be paid to Executive's
designated beneficiary or, if none, his estate) and shall be assignable by the
Company only to any financially solvent corporation or other entity resulting
from the reorganization, merger or consolidation of the Company with any other
corporation or entity or any corporation or entity to or with which the
Company's business or substantially all of its business or assets may be sold,
exchanged or transferred, and it must be so assigned by the Company to, and
accepted as binding upon it by, such other corporation or entity in connection
with any such reorganization, merger, consolidation, sale, exchange or transfer
in a writing delivered to Executive in a form reasonably acceptable to Executive
(the provisions of this sentence also being applicable to any successive such
transaction).

         15.      ENTIRE AGREEMENT; AMENDMENT.

         This Agreement shall supersede any and all existing oral or written
agreements, representations, or warranties between Executive and the Company or
any of its subsidiaries or affiliated entities relating to the terms of
Executive's employment by the Company. It may not be amended except by a written
agreement signed by both parties.

         16.      GOVERNING LAW.

         This Agreement shall be governed by and construed in accordance with
the laws of the State of Texas applicable to agreements made and to be performed
in that State, without regard to its conflict of laws provisions.

                                       18

<PAGE>

         17.      REQUIREMENT OF TIMELY PAYMENTS.

         If any amounts which are required, or determined to be paid or payable,
or reimbursed or reimbursable, to Executive under this Agreement (or any other
plan, agreement, policy or arrangement with the Company) are not so paid
promptly at the times provided herein or therein, such amounts shall accrue
interest, compounded daily, at an 8% annual percentage rate, from the date such
amounts were required or determined to have been paid or payable, reimbursed or
reimbursable to Executive, until such amounts and any interest accrued thereon
are finally and fully paid, provided, however, that in no event shall the amount
of interest contracted for, charged or received hereunder, exceed the maximum
non-usurious amount of interest allowed by applicable law.

         18.      NOTICES.

         Any notice, consent, request or other communication made or given in
connection with this Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by registered or certified mail, return
receipt requested, or by facsimile or by hand delivery, to those listed below at
their following respective addresses or at such other address as each may
specify by notice to the others:

                  To the Company:  Waste Management, Inc.
                                   1001 Fannin, Suite 4000
                                   Houston, Texas 77002
                                   Attention: Corporate Secretary

                  To Executive:    At the address for Executive set forth below.

         19.      MISCELLANEOUS.

         (a)      WAIVER. The failure of a party to insist upon strict adherence
to any term of this Agreement on any occasion shall not be considered a waiver
thereof or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement.

         (b)      SEPARABILITY. Subject to Section 9 hereof, if any term or
provision of this Agreement is declared illegal or unenforceable by any court of
competent jurisdiction and cannot be modified to be enforceable, such term or
provision shall immediately become null and void, leaving the remainder of this
Agreement in full force and effect.

         (c)      HEADINGS. Section headings are used herein for convenience of
reference only and shall not affect the meaning of any provision of this
Agreement.

         (d)      RULES OF CONSTRUCTION. Whenever the context so requires, the
use of the singular shall be deemed to include the plural and vice versa.

                                       19

<PAGE>

         (e)      COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, and
such counterparts will together constitute but one Agreement.

         IN WITNESS WHEREOF, this Agreement is EXECUTED and EFFECTIVE as of the
day set forth above.

                                      RICK L WITTENBRAKER
                                      ("Executive")

                                        /s/ Rick L Wittenbraker
                                      ------------------------------------------
                                      Rick L Wittenbraker

                                      __________________________________________

                                      __________________________________________

                                      WASTE MANAGEMENT, INC.
                                      (The "Company")

                                      By: /s/ Lawrence O'Donnell, III
                                          --------------------------------------
                                          Lawrence O'Donnell, III
                                          Executive Vice President, Operations
                                          Support & Chief Administrative Officer

                                       20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]