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<CONFORMED-NAME>WASTE MANAGEMENT INC
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<STREET1>1001 FANNIN STREET
<STREET2>STE 4000
<CITY>HOUSTON
<STATE>TX
<ZIP>77002
<PHONE>7135126200
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<STREET1>1001 FANNIN STREET
<STREET2>SUITE 4000
<CITY>HOUSTON
<STATE>TX
<ZIP>77002
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<FORMER-CONFORMED-NAME>USA WASTE SERVICES INC
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<DESCRIPTION>WASTE MANAGEMENT, INC. - NOVEMBER 15, 2001
<TEXT>
<PAGE>
================================================================================


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT


                         Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934


                        Date of Report: November 15, 2001


                             WASTE MANAGEMENT, INC.
             (Exact name of registrant as specified in its charter)

<Table>

<S>                                <C>                        <C>
            Delaware                        1-12154                    73-1309529
(State or other jurisdiction of    (Commission File Number)   (I.R.S. Employer Identification
incorporation or organization)                                           Number)
</Table>



     1001 Fannin Street, Suite 4000
          Houston, Texas                                        77002
 (Address of principal executive offices)                     (Zip Code)


                                 (713) 512-6200
              (Registrants' telephone number, including area code)

================================================================================


<PAGE>


ITEM 5.           OTHER EVENTS.

                  On November 15, 2001, Waste Management, Inc. (the "Company")
entered into an underwriting agreement for the public offering of $400 million
of its 6 1/2% Senior Notes due 2008 (the "Notes"). The Notes are to be issued
under an Indenture dated as of September 10, 1997 between the Company and
JPMorgan Chase Bank, as successor to The Chase Manhattan Bank, as Trustee.
Closing of the issuance and sale of the Notes is scheduled for November 20,
2001. Further information is included in Exhibits 1, 4.1 and 4.2.


ITEM 7.           FINANCIAL STATEMENTS AND EXHIBITS.

         (c)      EXHIBITS.

         1        Underwriting Agreement dated November 15, 2001, among Waste
                  Management, Inc., Banc of America Securities LLC, J.P. Morgan
                  Securities Inc., Salomon Smith Barney Inc., ABN AMRO
                  Incorporated, Credit Suisse First Boston Corporation, Fleet
                  Securities, Inc., Goldman, Sachs & Co., Lehman Brothers Inc.,
                  Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan
                  Stanley & Co. Incorporated, and PNC Capital Markets, Inc.

         4.1      Form of Book-Entry Note representing 6 1/2% Senior Notes due
                  2008.

         4.2      Officers' Certificate

         5        Opinion of Baker Botts L.L.P.

         23       Consent of Arthur Andersen LLP.



                                      -2-
<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.



                               WASTE MANAGEMENT, INC.






Date:   November 20, 2001      By: /s/ David P. Steiner
                                  -------------------------------------------
                                       David P. Steiner
                                       Senior Vice President, General Counsel
                                       and Corporate Secretary



                                      -3-
<PAGE>


                                  EXHIBIT INDEX

<Table>
<Caption>

EXHIBIT
NUMBER            DESCRIPTION
-------           -----------
<S>               <C>
  1               Underwriting Agreement dated November 20, 2001, among Waste
                  Management, Inc., Banc of America Securities LLC, J.P. Morgan
                  Securities Inc., Salomon Smith Barney Inc., ABN AMRO
                  Incorporated, Credit Suisse First Boston Corporation, Fleet
                  Securities, Inc., Goldman, Sachs & Co., Lehman Brothers Inc.,
                  Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan
                  Stanley & Co. Incorporated, and PNC Capital Markets, Inc.

  4.1             Form of Book-Entry Note representing 6 1/2% Senior Notes due
                  2008.

  4.2             Officers' Certificate

  5               Opinion of Baker Botts L.L.P.

  23              Consent of Arthur Andersen LLP.
</Table>


                                      -4-



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>3
<FILENAME>h92483ex1.txt
<DESCRIPTION>UNDERWRITING AGREEMENT DATED 11/20/2001
<TEXT>
<PAGE>
                                                                       EXHIBIT 1

                             WASTE MANAGEMENT, INC.

                                  $400,000,000

                          6 1/2% SENIOR NOTES DUE 2008

                             UNDERWRITING AGREEMENT


                                                              New York, New York
                                                               November 15, 2001


To the Representatives named
   in Schedule I hereto of the
   Underwriters named in
   Schedule II hereto

Ladies and Gentlemen:

         Waste Management, Inc., a corporation organized under the laws of
Delaware (the "Company"), proposes to sell to the several underwriters named in
Schedule II hereto (the "Underwriters"), for whom you (the "Representatives")
are acting as representatives, the principal amount of its securities identified
in Schedule I hereto (the "Securities"), to be issued under an indenture (the
"Indenture") dated as of September 30, 1997, between the Company and JPMorgan
Chase Bank, a New York banking corporation (as successor to The Chase Manhattan
Bank, as trustee (the "Trustee"). To the extent there are no additional
Underwriters listed on Schedule I other than you, the term Representatives as
used herein shall mean you, as Underwriters, and the terms Representatives and
Underwriters shall mean either the singular or plural as the context requires.
Any reference herein to the Registration Statement, the Basic Prospectus, any
Preliminary Final Prospectus or the Final Prospectus shall be deemed to refer to
and include the documents incorporated by reference therein pursuant to Item 12
of Form S-3 which were filed under the Exchange Act on or before the Effective
Date of the Registration Statement or the issue date of the Basic Prospectus,
any Preliminary Final Prospectus or the Final Prospectus, as the case may be;
and any reference herein to the terms "amend," "amendment" or "supplement" with
respect to the Registration Statement, the Basic Prospectus, any Preliminary
Final Prospectus or the Final Prospectus shall be deemed to refer to and include
the filing of any document under the Exchange Act after the Effective Date of
the Registration Statement or the issue date of the Basic Prospectus, any
Preliminary Final Prospectus or the Final Prospectus, as the case may be, deemed
to be incorporated therein by reference. Certain terms used herein are defined
in Section 17 hereof.

         1. Representations and Warranties. The Company represents and warrants
to, and agrees with, each Underwriter as set forth below in this Section 1.




<PAGE>


                  (a) The Company meets the requirements for use of Form S-3
         under the Act and has prepared and filed with the Commission a
         registration statement (the file number of which is set forth in
         Schedule I hereto) on Form S-3, including a related basic prospectus,
         for registration under the Act of the offering and sale of the
         Securities. The Company may have filed one or more amendments thereto,
         including a Preliminary Final Prospectus, each of which has previously
         been furnished to you. The Company will next file with the Commission
         one of the following: (1) after the Effective Date of such registration
         statement, a final prospectus supplement relating to the Securities in
         accordance with Rules 430A and 424(b), (2) prior to the Effective Date
         of such registration statement, an amendment to such registration
         statement (including the form of final prospectus supplement) or (3) a
         final prospectus in accordance with Rules 415 and 424(b). In the case
         of clause (1), the Company has included in such registration statement,
         as amended at the Effective Date, all information (other than Rule 430A
         Information) required by the Act and the rules thereunder to be
         included in such registration statement and the Final Prospectus. As
         filed, such final prospectus supplement or such amendment and form of
         final prospectus supplement shall contain all Rule 430A Information,
         together with all other such required information, and, except to the
         extent the Representatives shall agree in writing to a modification,
         shall be in all substantive respects in the form furnished to you prior
         to the Execution Time or, to the extent not completed at the Execution
         Time, shall contain only such specific additional information and other
         changes (beyond that contained in the Basic Prospectus and any
         Preliminary Final Prospectus) as the Company has advised you, prior to
         the Execution Time, will be included or made therein. The Registration
         Statement, at the Execution Time, meets the requirements set forth in
         Rule 415(a)(1)(x).

                  (b) On the Effective Date, the Registration Statement did or
         will, and when the Final Prospectus is first filed (if required) in
         accordance with Rule 424(b) and on the Closing Date (as defined
         herein), the Final Prospectus (and any supplement thereto) will, comply
         in all material respects with the applicable requirements of the Act,
         the Exchange Act and the Trust Indenture Act and the respective rules
         thereunder; on the Effective Date and at the Execution Time, the
         Registration Statement did not or will not contain any untrue statement
         of a material fact or omit to state any material fact required to be
         stated therein or necessary in order to make the statements therein not
         misleading; on the Effective Date and on the Closing Date, the
         Indenture did or will comply in all material respects with the
         applicable requirements of the Trust Indenture Act and the rules
         thereunder; and, on the Effective Date, the Final Prospectus, if not
         filed pursuant to Rule 424(b), will not, and on the date of any filing
         pursuant to Rule 424(b) and on the Closing Date, the Final Prospectus
         (together with any supplement thereto) will not, include any untrue
         statement of a material fact or omit to state a material fact necessary
         in order to make the statements therein, in the light of the
         circumstances under which they were made, not misleading; provided,
         however, that the Company makes no representations or warranties as to
         (i) that part of the Registration Statement which shall constitute the
         Statement of Eligibility and Qualification (Form T-1) under the Trust
         Indenture Act of the Trustee or (ii) the information contained in or
         omitted from the Registration Statement or the Final Prospectus (or any
         supplement thereto) in reliance upon and in conformity with information
         furnished in writing to the Company by or on behalf of any


                                      -2-
<PAGE>


         Underwriter through the Representatives specifically for inclusion in
         the Registration Statement or the Final Prospectus (or any supplement
         thereto).

                  (c) The Indenture has been duly authorized, executed and
         delivered by the Company and, assuming it was duly executed and
         delivered by the Trustee, is a valid and binding agreement of the
         Company, enforceable against the Company in accordance with its terms,
         except as enforcement thereof may be limited by applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and
         similar laws now or hereafter in effect relating to or affecting rights
         and remedies of creditors, and to general principles of equity
         (regardless of whether enforcement is sought in a proceeding at law or
         in equity) and to the discretion of the court before which any
         proceeding therefor may be brought, and the Indenture has been duly
         qualified under the 1939 Act and conforms to the description thereof in
         the Registration Statement and the Final Prospectus.

                  (d) The Securities have been duly authorized and, when
         executed by the Company and authenticated by the Trustee in accordance
         with the Indenture and delivered to you against payment therefor in
         accordance with the terms hereof, will have been validly issued and
         delivered, and will constitute valid and binding obligations of the
         Company entitled to the benefits of the Indenture and enforceable
         against the Company in accordance with their terms, except as
         enforcement thereof may be limited by applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and
         similar laws now or hereafter in effect relating to or affecting rights
         and remedies of creditors, and to general principles of equity
         (regardless of whether enforcement is sought in a proceeding at law or
         in equity) and to the discretion of the court before which any
         proceeding therefor may be brought, and the Securities will conform to
         the description thereof in the Registration Statement and the Final
         Prospectus.

                  (e) The Company is a corporation duly organized and validly
         existing in good standing under the laws of the State of Delaware with
         full corporate power and authority to own, lease and operate its
         properties and to conduct its business as described in the Registration
         Statement and the Final Prospectus, and is duly registered and
         qualified to conduct its business and is in good standing in each
         jurisdiction or place where the nature of its properties or the conduct
         of its business requires such registration or qualification, except
         where the failure so to register or qualify does not have a material
         adverse effect on the condition (financial or other), prospects,
         earnings, business or properties of the Company and its subsidiaries
         taken as a whole, whether or not arising from transactions in the
         ordinary course of business (a "Material Adverse Effect").

                  (f) Each "significant subsidiary" (as such term is defined in
         Regulation S-X under the Exchange Act) of the Company is listed on
         Exhibit 21.1 to the Annual Report on Form 10-K of the Company for the
         year ended December 31, 2000 or is described in the Registration
         Statement as having been acquired after December 31, 2000 (the
         "Subsidiaries"). Each of the Subsidiaries has been duly organized, is
         validly existing and is in good standing in the jurisdiction of its
         incorporation, with full corporate power and authority to own, lease
         and operate its properties and to conduct its business as described in
         the Registration Statement and the Final Prospectus, and is duly
         registered and qualified to conduct its business and is in good
         standing in each jurisdiction or place


                                      -3-
<PAGE>


         where the nature of its properties or the conduct of its business
         requires such registration or qualification, except where the failure
         so to register or qualify does not have a Material Adverse Effect.

                  (g) All of the issued and outstanding shares of capital stock
         of each of the Subsidiaries have been duly authorized and validly
         issued and are owned directly or indirectly by the Company. All such
         shares are fully paid and nonassessable, and, except as disclosed in
         the Final Prospectus, are owned by the Company free and clear of any
         security interest, mortgage, pledge, claim, lien, encumbrance or
         adverse interest of any nature (each, a "Lien"). Except as disclosed in
         the Final Prospectus, there are no outstanding subscriptions, rights,
         warrants, options, calls, convertible or exchangeable securities,
         commitments of sale, or Liens related to or entitling any person to
         purchase or otherwise to acquire any shares of the capital stock of, or
         other ownership interests in, any Subsidiary.

                  (h) This Agreement has been duly and validly authorized,
         executed and delivered by the Company.

                  (i) Except as disclosed in the Final Prospectus, there is no
         action, suit or proceeding before or by any court or governmental
         agency or body or any arbitrator pending against the Company or any of
         its subsidiaries that is required to be disclosed in the Registration
         Statement or the Final Prospectus, or which could reasonably be
         expected to have a Material Adverse Effect, or materially and adversely
         affect the performance of the Company's obligations pursuant to this
         Agreement and, to the best of the Company's knowledge, no such
         proceedings are contemplated or threatened. No action has been taken
         with respect to the Company or any Subsidiary, and no statute, rule or
         regulation or order has been enacted, adopted or issued by any
         governmental agency and no injunction, restraining order or other order
         of any court of competent jurisdiction has been issued with respect to
         the Company or any Subsidiary that prevents the issuance of the
         Securities or suspends the effectiveness of the Registration Statement,
         prevents or suspends the use of any Preliminary Prospectus or the Final
         Prospectus or prevents or suspends the sale of the Securities in any of
         the jurisdictions that you may have specified pursuant to Section 5(e)
         hereof; and every request of the Commission, or any securities
         authority or agency of any jurisdiction, for additional information to
         be included in the Registration Statement or the Final Prospectus or
         otherwise has been complied with in all material respects.

                  (j) Except as disclosed in the Registration Statement or the
         Final Prospectus (or any amendment or supplement thereto), subsequent
         to the respective dates as of which such information is given in the
         Registration Statement and the Final Prospectus (or any amendment or
         supplement thereto), neither the Company nor any of its subsidiaries
         has incurred any liability or obligation, direct or contingent, that is
         material to the Company and its Subsidiaries taken as a whole, or
         entered into any transaction, not in the ordinary course of business,
         that is material to the Company and its subsidiaries taken as a whole,
         and there has not been any material adverse change, or any development
         involving or which may reasonably be expected to involve, a prospective
         material adverse change, in the condition (financial or other),
         prospects, earnings, business or properties of the


                                      -4-
<PAGE>


         Company and its subsidiaries taken as a whole, whether or not arising
         from transactions in the ordinary course of business.

                  (k) Except as otherwise set forth in the Final Prospectus or
         such as would not have a Material Adverse Effect, each of the Company
         and the Subsidiaries has good and marketable title to all property
         (real and personal) described in the Final Prospectus as being owned by
         it, free and clear of all Liens, except Liens for taxes not yet due and
         payable and Liens described in the Registration Statement or the Final
         Prospectus or in a document filed as an exhibit to the Registration
         Statement. All the property described in the Final Prospectus as being
         held under lease by each of the Company and the Subsidiaries is held by
         it under valid, subsisting and enforceable leases, except as would not
         have a Material Adverse Effect.

                  (l) Except as would not have a Material Adverse Effect,
         neither the Company nor any Subsidiary is in violation or default of
         (i) any provision of its charter or bylaws, (ii) the terms of any
         indenture, contract, lease, mortgage, deed of trust, note agreement,
         loan agreement or other agreement, obligation, condition, covenant or
         instrument to which it is a party or bound or to which its property is
         subject, or (iii) any statute, law, rule, regulation, judgment, order
         or decree of any court, regulatory body, administrative agency,
         governmental body, arbitrator or other authority having jurisdiction
         over the Company or such Subsidiary or any of its properties, as
         applicable.

                  (m) The Company has not distributed and, prior to the later to
         occur of (i) the Closing Date and (ii) completion of the distribution
         of the Securities, will not distribute any offering material in
         connection with the offering and sale of the Securities other than the
         Registration Statement, any Preliminary Final Prospectus, the Final
         Prospectus or other materials, if any, permitted by the Act.

                  (n) Except as would not have a Material Adverse Effect, the
         Company and the Subsidiaries own or possess the right to use all
         patents, trademarks, trademark registrations, service marks, service
         mark registrations, trade names, copyrights, licenses, inventions,
         trade secrets and rights described in the Final Prospectus as being
         owned by them or any of them or necessary for the conduct of their
         respective businesses, and the Company is not aware of any claim to the
         contrary or any challenge by any other person to the rights of the
         Company and the Subsidiaries with respect to the foregoing.

                  (o) Neither the Company nor any subsidiary is a "holding
         company" or a "public utility," as such terms are defined in the 1935
         Act.

                  (p) The Company is not and, after giving effect to the
         offering and sale of the Securities and the application of the proceeds
         thereof as described in the Prospectus, will not be an "investment
         company" as defined in the Investment Company Act of 1940, as amended.

                  (q) No consent, approval, authorization, filing with or order
         of any court or governmental agency or body is required in connection
         with the transactions contemplated herein, except such as have been
         obtained under the Act and the Trust


                                      -5-
<PAGE>


         Indenture Act and such as may be required under the blue sky laws of
         any jurisdiction in connection with the purchase and distribution of
         the Securities by the Underwriters in the manner contemplated herein
         and in the Final Prospectus.

                  (r) Neither the issue and sale of the Securities nor the
         consummation of any other of the transactions herein contemplated nor
         the fulfillment of the terms hereof will conflict with, result in a
         breach or violation or imposition of any lien, charge or encumbrance
         upon any property or assets of the Company or any of its subsidiaries
         pursuant to, (i) the charter or by-laws of the Company or any of its
         subsidiaries, (ii) the terms of any indenture, contract, lease,
         mortgage, deed of trust, note agreement, loan agreement or other
         agreement, obligation, condition, covenant or instrument to which the
         Company or any of its subsidiaries is a party or bound or to which its
         or their property is subject, except as would not have a Material
         Adverse Effect, or (iii) any statute, law, rule, regulation, judgment,
         order or decree applicable to the Company or any of its subsidiaries of
         any court, regulatory body, administrative agency, governmental body,
         arbitrator or other authority having jurisdiction over the Company or
         any of its subsidiaries or any of its or their properties.

                  (s) The consolidated historical financial statements and
         schedules of the Company and its consolidated subsidiaries included in
         the Final Prospectus and the Registration Statement present fairly in
         all material respects the financial condition, results of operations
         and cash flows of the Company as of the dates and for the periods
         indicated, comply as to form with the applicable accounting
         requirements of the Act and have been prepared in conformity with
         generally accepted accounting principles applied on a consistent basis
         throughout the periods involved (except as otherwise noted therein).

                  (t) Arthur Andersen LLP, who has certified certain financial
         statements of the Company and its consolidated subsidiaries and
         delivered their report with respect to the audited consolidated
         financial statements and schedules included in the Final Prospectus,
         are independent public accountants with respect to the Company within
         the meaning of the Act and the applicable published rules and
         regulations thereunder.

                  (u) The Company has filed all foreign, federal, state and
         local tax returns that are required to be filed or has requested
         extensions thereof (except in any case in which the failure so to file
         would not have a Material Adverse Effect, and except as set forth or
         incorporated by reference in the Final Prospectus (exclusive of any
         supplement thereto)) and has paid all taxes required to be paid by it
         and any other assessment, fine or penalty levied against it, to the
         extent that any of the foregoing is due and payable, except for any
         such assessment, fine or penalty that is currently being contested in
         good faith or as would not have a Material Adverse Effect, and except
         as set forth or incorporated by reference in the Final Prospectus
         (exclusive of any supplement thereto).

                  (v) No labor problem or dispute with the employees of the
         Company or any of its Subsidiaries exists or is threatened or imminent,
         and the Company is not aware of any existing or imminent labor
         disturbance by the employees of any of its or its Subsidiaries'
         principal suppliers, contractors or customers, that could have a
         Material Adverse Effect,


                                      -6-
<PAGE>


         except as set forth or incorporated by reference in the Final
         Prospectus (exclusive of any supplement thereto).

                  (w) Except as would not have a Material Adverse Effect: the
         Company and each of its Subsidiaries are insured by insurers of
         recognized financial responsibility against such losses and risks and
         in such amounts as are prudent and customary in the businesses in which
         they are engaged; all policies of insurance insuring the Company or any
         of its Subsidiaries or their respective businesses, assets, employees,
         officers and directors are in full force and effect; the Company and
         its Subsidiaries are in compliance with the terms of such policies and
         instruments; there are no claims by the Company or any of its
         Subsidiaries under any such policy or instrument as to which any
         insurance company is denying liability or defending under a reservation
         of rights clause; and neither the Company nor any such Subsidiary has
         been refused any insurance coverage sought or applied for, except in
         each case as set forth or incorporated by reference in the Final
         Prospectus (exclusive of any supplement thereto). Neither the Company
         nor any such Subsidiary has any reason to believe that it will not be
         able to renew its existing insurance coverage as and when such coverage
         expires or to obtain similar coverage from similar insurers as may be
         necessary to continue its business at a cost that would not have a
         Material Adverse Effect, except as set forth or incorporated by
         reference in the Final Prospectus (exclusive of any supplement
         thereto).

                  (x) No Subsidiary is currently prohibited, directly or
         indirectly, from paying any dividends to the Company, from making any
         other distribution on such Subsidiary's capital stock, from repaying to
         the Company any loans or advances to such Subsidiary from the Company
         or from transferring any of such Subsidiary's property or assets to the
         Company or any other Subsidiary of the Company, except as described or
         incorporated by reference in the Final Prospectus (exclusive of any
         supplement thereto).

                  (y) Except as would not have a Material Adverse Effect, the
         Company and its Subsidiaries possess all licenses, certificates,
         permits and other authorizations issued by the appropriate federal,
         state or foreign regulatory authorities necessary to conduct their
         respective businesses, and neither the Company nor any such Subsidiary
         has received any notice of proceedings relating to the revocation or
         modification of any such certificate, authorization or permit which,
         singly or in the aggregate, if the subject of an unfavorable decision,
         ruling or finding, would have a Material Adverse Effect, except as set
         forth or incorporated by reference in the Final Prospectus (exclusive
         of any supplement thereto).

                  (z) The Company and each of its subsidiaries maintain a system
         of internal accounting controls sufficient to provide reasonable
         assurance that (i) transactions are executed in accordance with
         management's general or specific authorizations; (ii) transactions are
         recorded as necessary to permit preparation of financial statements in
         conformity with generally accepted accounting principles and to
         maintain asset accountability; (iii) access to assets is permitted only
         in accordance with management's general or specific authorization; and
         (iv) the recorded accountability for assets is compared with the
         existing assets at reasonable intervals and appropriate action is taken
         with respect to any differences.


                                      -7-
<PAGE>


                  (aa) The Company has not taken, directly or indirectly, any
         action designed to or that would constitute or that might reasonably be
         expected to cause or result in stabilization or manipulation of the
         price of any security of the Company to facilitate the sale or resale
         of the Securities.

                  (bb) The Company and its subsidiaries are (i) in compliance
         with any and all applicable foreign, federal, state and local laws and
         regulations relating to the protection of human health and safety, the
         environment or hazardous or toxic substances or wastes, pollutants or
         contaminants ("Environmental Laws"), (ii) have received and are in
         compliance with all permits, licenses or other approvals required of
         them under applicable Environmental Laws to conduct their respective
         businesses and (iii) have not received notice of any actual or
         potential liability for the investigation or remediation of any
         disposal or release of hazardous or toxic substances or wastes,
         pollutants or contaminants, except where such non-compliance with
         Environmental Laws, failure to receive required permits, licenses or
         other approvals, or liability would not, individually or in the
         aggregate, have a Material Adverse Effect, except as set forth or
         incorporated by reference in the Final Prospectus (exclusive of any
         supplement thereto). The environmental reserves described or
         incorporated by reference in the Final Prospectus reflect in accordance
         with generally accepted accounting principles the known liabilities and
         obligations of the Company and its subsidiaries under Environmental
         Laws.

                  (cc) In the ordinary course of its business, the Company
         periodically reviews the effect of Environmental Laws on the business,
         operations and properties of the Company and its subsidiaries, in the
         course of which it identifies and evaluates associated costs and
         liabilities (including, without limitation, any capital or operating
         expenditures required for clean-up, closure of properties or compliance
         with Environmental Laws, or any permit, license or approval, any
         related constraints on operating activities and any potential
         liabilities to third parties). On the basis of such review, the Company
         has reasonably concluded that such associated costs and liabilities
         would not, singly or in the aggregate, have a Material Adverse Effect,
         except as set forth or incorporated by reference in the Final
         Prospectus (exclusive of any supplement thereto).

                  (dd) Except as would not have a Material Adverse Effect, each
         of the Company and its subsidiaries has fulfilled its obligations, if
         any, under the minimum funding standards of Section 302 of the United
         States Employee Retirement Income Security Act of 1974 ("ERISA") and
         the regulations and published interpretations thereunder with respect
         to each "plan" (as defined in Section 3(3) of ERISA and such
         regulations and published interpretations) in which employees of the
         Company and its Subsidiaries are eligible to participate and each such
         plan is in compliance with the presently applicable provisions of ERISA
         and such regulations and published interpretations. Except as would not
         have a Material Adverse Effect, the Company and its Subsidiaries have
         not incurred any unpaid liability to the Pension Benefit Guaranty
         Corporation (other than for the payment of premiums in the ordinary
         course) or to any such plan under Title IV of ERISA.

                  (ee) No holders of securities of the Company have rights to
         the registration of such securities under the Registration Statement.


                                      -8-
<PAGE>


         Any certificate signed by any officer of the Company and delivered to
the Representatives or counsel for the Underwriters in connection with the
offering of the Securities shall be deemed a representation and warranty by the
Company, as to matters covered thereby, to each Underwriter.

         2. Purchase and Sale. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
agrees to sell to each Underwriter, and each Underwriter agrees, severally and
not jointly, to purchase from the Company, at the purchase price set forth in
Schedule I hereto the principal amount of the Securities set forth opposite such
Underwriter's name in Schedule II hereto.

         3. Delivery and Payment. Delivery of and payment for the Securities
shall be made on the date and at the time specified in Schedule I hereto or at
such time on such later date not more than three Business Days after the
foregoing date as the Representatives shall designate, which date and time may
be postponed by agreement between the Representatives and the Company or as
provided in Section 9 hereof (such date and time of delivery and payment for the
Securities being herein called the "Closing Date"). Delivery of the Securities
shall be made to the Representatives for the respective accounts of the several
Underwriters against payment by the several Underwriters through the
Representatives of the purchase price thereof to or upon the order of the
Company by wire transfer payable in same-day funds to an account specified by
the Company. Delivery of the Securities shall be made through the facilities of
The Depository Trust Company unless the Representatives shall otherwise
instruct.

         4. Offering by Underwriters. It is understood that the several
Underwriters propose to offer the Securities for sale to the public as set forth
in the Final Prospectus.

         5. Agreements. The Company agrees with the several Underwriters that:

                  (a) The Company will use its best efforts to cause the
         Registration Statement, if not effective at the Execution Time, and any
         amendment thereof, to become effective. Prior to the termination of the
         offering of the Securities, the Company will not file any amendment of
         the Registration Statement or supplement (including the Final
         Prospectus or any Preliminary Final Prospectus) to the Basic Prospectus
         or any Rule 462(b) Registration Statement unless the Company has
         furnished you a copy for your review prior to filing and will not file
         any such proposed amendment or supplement to which you reasonably
         object. Subject to the foregoing sentence, if the Registration
         Statement has become or becomes effective pursuant to Rule 430A, or
         filing of the Final Prospectus is otherwise required under Rule 424(b),
         the Company will cause the Final Prospectus, properly completed, and
         any supplement thereto to be filed with the Commission pursuant to the
         applicable paragraph of Rule 424(b) within the time period prescribed
         and will provide evidence satisfactory to the Representatives of such
         timely filing. The Company will promptly advise the Representatives (1)
         when the Registration Statement, if not effective at the Execution
         Time, shall have become effective, (2) when the Final Prospectus, and
         any supplement thereto, shall have been filed (if required) with the
         Commission pursuant to Rule 424(b) or when any Rule 462(b) Registration
         Statement shall have been filed with the Commission, (3) when, prior to
         termination of the offering of the Securities, any amendment to the
         Registration Statement shall have been filed or


                                      -9-
<PAGE>


         become effective, (4) of any request by the Commission or its staff for
         any amendment of the Registration Statement, or any Rule 462(b)
         Registration Statement, or for any supplement to the Final Prospectus
         or for any additional information, (5) of the issuance by the
         Commission of any stop order suspending the effectiveness of the
         Registration Statement or the institution or threatening of any
         proceeding for that purpose and (6) of the receipt by the Company of
         any notification with respect to the suspension of the qualification of
         the Securities for sale in any jurisdiction or the institution or
         threatening of any proceeding for such purpose. The Company will use
         its best efforts to prevent the issuance of any such stop order or the
         suspension of any such qualification and, if issued, to obtain as soon
         as possible the withdrawal thereof.

                  (b) If, at any time when a prospectus relating to the
         Securities is required to be delivered under the Act, any event occurs
         as a result of which the Final Prospectus as then supplemented would
         include any untrue statement of a material fact or omit to state any
         material fact necessary to make the statements therein in the light of
         the circumstances under which they were made not misleading, or if it
         shall be necessary to amend the Registration Statement or supplement
         the Final Prospectus to comply with the Act or the Exchange Act or the
         respective rules thereunder, the Company promptly will (1) notify the
         Representatives of such event, (2) prepare and file with the
         Commission, subject to the second sentence of paragraph (a) of this
         Section 5, an amendment or supplement which will correct such statement
         or omission or effect such compliance and (3) supply any supplemented
         Final Prospectus to you in such quantities as you may reasonably
         request.

                  (c) As soon as practicable, the Company will make generally
         available to its security holders and to the Representatives an
         earnings statement or statements of the Company and its Subsidiaries
         which will satisfy the provisions of Section 11(a) of the Act and Rule
         158 under the Act.

                  (d) The Company will furnish to the Representatives and
         counsel for the Underwriters, without charge, signed or conformed
         copies of the Registration Statement (including exhibits thereto) and
         to each other Underwriter a copy of the Registration Statement (without
         exhibits thereto) and, so long as delivery of a prospectus by an
         Underwriter or dealer may be required by the Act, as many copies of
         each Preliminary Final Prospectus and the Final Prospectus and any
         supplement thereto as the Representatives may reasonably request. The
         Company will pay the expenses of printing or other production of all
         documents relating to the offering.

                  (e) The Company will arrange, if necessary, for the
         qualification of the Securities for sale under the laws of such
         jurisdictions as the Representatives may designate, will maintain such
         qualifications in effect so long as required for the distribution of
         the Securities and will pay any fee of the National Association of
         Securities Dealers, Inc., in connection with its review of the
         offering; provided that in no event shall the Company be obligated to
         qualify to do business in any jurisdiction where it is not now so
         qualified or to take any action that would subject it to tax or service
         of process in suits, other than those arising out of the offering or
         sale of the Securities, in any jurisdiction where it is not now so
         subject.


                                      -10-
<PAGE>


                  (f) The Company will not, without the prior written consent of
         Banc of America Securities LLC, J.P. Morgan Securities Inc. and Salomon
         Smith Barney Inc., offer, sell, contract to sell, pledge, or otherwise
         dispose of, (or enter into any transaction which is designed to, or
         might reasonably be expected to, result in the disposition (whether by
         actual disposition or effective economic disposition due to cash
         settlement or otherwise) by the Company or any affiliate of the Company
         or any person in privity with the Company or any affiliate of the
         Company) directly or indirectly, including the filing (or participation
         in the filing) of a registration statement with the Commission in
         respect of, or establish or increase a put equivalent position or
         liquidate or decrease a call equivalent position within the meaning of
         Section 16 of the Exchange Act, any debt securities (excluding
         commercial paper or bank borrowings) issued or guaranteed by the
         Company (other than the Securities) or publicly announce an intention
         to effect any such transaction, until the Business Day set forth on
         Schedule I hereto.

                  (g) The Company will not take, directly or indirectly, any
         action designed to or that would constitute or that might reasonably be
         expected to cause or result in, under the Exchange Act or otherwise,
         stabilization or manipulation of the price of any security of the
         Company to facilitate the sale or resale of the Securities.

         6. Conditions to the Obligations of the Underwriters. The obligations
of the Underwriters to purchase the Securities shall be subject to the accuracy
of the representations and warranties on the part of the Company contained
herein as of the Execution Time and the Closing Date, to the accuracy of the
statements of the Company made in any certificates pursuant to the provisions
hereof, to the performance by the Company of its obligations hereunder and to
the following additional conditions:

                  (a) If the Registration Statement has not become effective
         prior to the Execution Time, unless the Representatives agree in
         writing to a later time, the Registration Statement will become
         effective not later than (i) 6:00 p.m., New York City time, on the date
         of determination of the public offering price, if such determination
         occurred at or prior to 3:00 p.m., New York City time, on such date or
         (ii) 9:30 a.m. on the Business Day following the day on which the
         public offering price was determined, if such determination occurred
         after 3:00 p.m., New York City time, on such date; if filing of the
         Final Prospectus, or any supplement thereto, is required pursuant to
         Rule 424(b), the Final Prospectus, and any such supplement, will be
         filed in the manner and within the time period required by Rule 424(b);
         and no stop order suspending the effectiveness of the Registration
         Statement shall have been issued and no proceedings for that purpose
         shall have been instituted or threatened.

                  (b) The Company shall have requested and caused Baker Botts
         L.L.P., counsel for the Company, to have furnished to the
         Representatives their opinion, dated the Closing Date and addressed to
         the Representatives, to the effect that:

                           (i) the Company is a corporation duly incorporated
                  and validly existing in good standing under the laws of the
                  State of Delaware;


                                      -11-
<PAGE>


                           (ii) the Company has corporate power and authority to
                  own, lease and operate its properties and to conduct its
                  business as described in the Final Prospectus and to execute
                  and deliver and perform its obligations under this Agreement;

                           (iii) this Agreement has been duly authorized,
                  executed and delivered by the Company;

                           (iv) the Indenture has been duly authorized, executed
                  and delivered by the Company and (assuming the due
                  authorization, execution and delivery thereof by the Trustee)
                  constitutes a valid and binding agreement of the Company,
                  enforceable against the Company in accordance with its terms,
                  except as the enforcement thereof may be limited by
                  bankruptcy, insolvency, fraudulent transfer, reorganization,
                  moratorium or similar laws affecting enforcement of creditors'
                  rights and remedies generally and except as enforcement
                  thereof is subject to general principles of equity (regardless
                  of whether enforcement is considered in a proceeding in equity
                  or at law);

                           (v) the global certificate representing the
                  Securities is in a form authorized by the Indenture, the
                  Securities have been duly authorized by the Company and,
                  assuming the global certificate representing the Securities
                  has been authenticated by the Trustee in the manner provided
                  for in the Indenture and delivered against payment of the
                  consideration therefor specified in this Agreement, the
                  Securities constitute valid and binding obligations of the
                  Company, enforceable against the Company in accordance with
                  their terms, except as the enforcement thereof may be limited
                  by bankruptcy, insolvency, fraudulent transfer,
                  reorganization, moratorium or similar laws affecting
                  enforcement of creditors' rights and remedies generally and
                  except as enforcement thereof is subject to general principles
                  of equity (regardless of whether enforcement is considered in
                  a proceeding in equity or at law), and each registered holder
                  thereof is entitled to the benefits of the Indenture;

                           (vi) the Indenture has been duly qualified under the
                  1939 Act;

                           (vii) the Securities and the Indenture conform as to
                  legal matters in all material respects to the descriptions
                  thereof contained in the Final Prospectus;

                           (viii) the Registration Statement has been declared
                  effective under the Act; any required filing of the Final
                  Prospectus pursuant to Rule 424(b) has been made in the manner
                  and within the time period required by Rule 424(b); and, to
                  the best of such counsel's knowledge, no stop order suspending
                  the effectiveness of the Registration Statement has been
                  issued and no proceedings for that purpose have been
                  instituted or are pending or threatened under the Act;

                           (ix) no authorization, approval, consent or license
                  of any regulatory body or authority (other than under the Act,
                  the 1939 Act and the securities or Blue Sky laws of the
                  various states) and no approval of the stockholders of the


                                      -12-
<PAGE>


                  Company is required for the valid authorization, issuance,
                  sale and delivery of the Securities by the Company, or for the
                  performance of the Indenture;

                           (x) the execution and delivery of the Underwriting
                  Agreement, the consummation of the transactions contemplated
                  in the Underwriting Agreement and compliance with the terms of
                  the Underwriting Agreement and the Indenture do not and will
                  not conflict with or result in a breach of any of the terms or
                  provisions of, or constitute a default under, the charter or
                  by-laws of the Company or its subsidiaries Waste Management
                  Holdings, Inc. and Wheelabrator Technologies, Inc., or any
                  indenture, mortgage or other agreement or instrument to which
                  the Company or such subsidiaries is a party or by which they
                  or any of their property is bound which is filed as an exhibit
                  to the Registration Statement or to any of the documents
                  incorporated by reference in the Final Prospectus, or any
                  existing applicable laws, rule, regulation (excluding any
                  securities or anti-fraud law, rule or regulation);

                           (xi) the Company is not an "investment company" or an
                  entity "controlled" by an "investment company," as such terms
                  are defined in the 1940 Act; and

                           (xii) neither the Company nor any subsidiary is a
                  "holding company" or a "public utility," as such terms are
                  defined in the 1935 Act.

                  Such counsel shall state that the Registration Statement and
         the Final Prospectus, excluding the documents incorporated by reference
         therein and the financial statements and other financial data and
         supporting schedules included therein or omitted therefrom and the
         Trustee's Statement of Eligibility on Form T-1 (the "Form T-1"), as to
         which they need not express a view, as of their respective effective or
         issue dates appear on their face to have been appropriately responsive
         in all material respects with the requirements of the Act. In addition,
         such counsel shall state that they have participated in conferences
         with officers and other representatives of the Company, counsel
         employed by the Company, representatives of the independent public
         accountants of the Company, representatives of the Underwriters and
         counsel to the Underwriters at which the contents of the Registration
         Statement and the Final Prospectus were discussed and, although such
         counsel did not independently verify such information and is not
         passing upon and does not assume any responsibility for the accuracy,
         completeness or fairness of the statements contained in the
         Registration Statement and the Final Prospectus (other than as set
         forth in paragraph (vii) above), on the basis of the foregoing, no
         facts came to such counsel's attention that led such counsel to believe
         that the Registration Statement (other than the financial statements,
         the notes thereto and the auditors' reports thereon and the related
         schedules and the other financial and accounting data included or
         incorporated by reference therein, or omitted therefrom, and the
         exhibits thereto, as to which such counsel need not comment) as of the
         date of the Underwriting Agreement contained an untrue statement of a
         material fact or omitted to state a material fact required to be stated
         therein or necessary in order to make the statements therein not
         misleading, or that the Final Prospectus (other than the financial
         statements, the notes thereto and the auditors' reports thereon and the
         related schedules and the other financial and accounting data included
         or

                                      -13-
<PAGE>
         incorporated by reference therein, or omitted therefrom, as to which
         such counsel need not comment) as of its issue date or the Closing Date
         contained or contains an untrue statement of a material fact or omitted
         or omits to state a material fact necessary in order to make the
         statements therein, in the light of the circumstances under which they
         were made, not misleading.

                  In rendering such opinions, such counsel may rely (A) as to
         matters involving the application of laws of any jurisdiction other
         than the contract law of the State of New York, the General Corporation
         Law of Delaware or the Federal laws of the United States, to the extent
         they deem proper and specified in such opinion, upon the opinion of
         other counsel of good standing whom they believe to be reliable and who
         are satisfactory to counsel for the Underwriters and (B) as to matters
         of fact, to the extent they deem proper, on certificates of responsible
         officers of the Company and public officials. References to the Final
         Prospectus in this paragraph (b) include any supplements thereto at the
         Closing Date.

                  (c) David P. Steiner, Senior Vice President, General Counsel
         and Corporate Secretary of the Company, shall have furnished to the
         Representatives his opinion, dated the Closing Date and addressed to
         the Representatives, to the effect that:

                           (i) each of the corporate Subsidiaries organized
                  under U.S. law is a corporation duly incorporated and validly
                  existing in good standing under the laws of the jurisdiction
                  of its incorporation, has corporate power and authority to
                  own, lease and operate its properties and to conduct its
                  business as described in the Final Prospectus, except as would
                  not have a Material Adverse Effect; except as otherwise
                  disclosed in the Registration Statement or set forth in the
                  opinion, all of the issued and outstanding capital stock of
                  each of the Subsidiaries is validly issued, fully paid and
                  nonassessable and, to the best of such counsel's knowledge, is
                  owned by the Company free and clear of any security interest,
                  mortgage, pledge, lien, encumbrance, claim or equity; none of
                  the outstanding shares of capital stock of the Subsidiaries
                  was issued in violation of the preemptive or similar rights of
                  any security holder thereof;

                           (ii) the documents incorporated by reference in the
                  Final Prospectus (other than the financial statements, other
                  financial data and supporting schedules included therein or
                  omitted therefrom, as to which he need express no opinion, and
                  except to the extent that any statement therein is modified or
                  superseded in the Final Prospectus), as of the dates they
                  became effective or were filed with the Commission, as the
                  case may be, appear on their face to be appropriately
                  responsive in all material respects with the requirements of
                  the Exchange Act;

                           (iii) except as set forth in the Final Prospectus (or
                  incorporated by reference therein), such counsel does not know
                  of any action, suit, proceeding, inquiry or investigation
                  pending or threatened against the Company or any of its
                  Subsidiaries, or to which the property of the Company or any
                  of its Subsidiaries is subject, before or brought by any court
                  or governmental agency or body, domestic or foreign, in which
                  there is a reasonable probability of a Material Adverse
                  Effect;


                                      -14-
<PAGE>


                           (iv) such counsel does not know of any statutes or
                  regulations or any pending or threatened legal or governmental
                  proceedings required to be described in the Final Prospectus
                  which are not described as required, nor of any material
                  contracts or documents of a character required to be described
                  in the Registration Statement or Final Prospectus or to be
                  filed or incorporated as exhibits to the Registration
                  Statement which are not described and filed or incorporated as
                  required;

                           (v) such counsel does not know of any holders of
                  securities of the Company that have rights to the registration
                  of such securities under the Registration Statement; and

                           (vi) the execution and delivery of the Underwriting
                  Agreement, the consummation of the transactions contemplated
                  in the Underwriting Agreement and compliance with the terms of
                  the Underwriting Agreement and the Indenture do not and will
                  not conflict with or result in a breach of any of the terms or
                  provisions of, or constitute a default under, the charter or
                  by-laws of the Company or any of its Subsidiaries, or, to the
                  knowledge of such counsel, any indenture, mortgage or other
                  agreement or instrument to which the Company or its
                  Subsidiaries is a party or by which they or any of their
                  property is bound, or any existing applicable laws, rule,
                  regulation (excluding any securities or anti-fraud law, rule
                  or regulation), or, to the knowledge of such counsel, any
                  judgment, order or decree of any government, governmental
                  instrumentality or court, domestic or foreign, having
                  jurisdiction over the Company or its Subsidiaries or any of
                  their properties, that in any case would have a Material
                  Adverse Effect.

                  (d) The Representatives shall have received from Vinson &
         Elkins L.L.P., counsel for the Underwriters, such opinion or opinions,
         dated the Closing Date and addressed to the Representatives, with
         respect to the issuance and sale of the Securities, the Indenture, the
         Registration Statement, the Final Prospectus (together with any
         supplement thereto) and other related matters as the Representatives
         may reasonably require, and the Company shall have furnished to such
         counsel such documents as they request for the purpose of enabling them
         to pass upon such matters.

                  (e) The Company shall have furnished to the Representatives a
         certificate of the Company, signed by the principal legal officer and
         the principal financial or accounting officer of the Company, dated the
         Closing Date, to the effect that the signers of such certificate have
         carefully examined the Registration Statement, the Final Prospectus,
         any supplements to the Final Prospectus and this Agreement and that:

                           (i) the representations and warranties of the Company
                  in this Agreement are true and correct on and as of the
                  Closing Date with the same effect as if made on the Closing
                  Date and the Company has complied with all the agreements and
                  satisfied all the conditions on its part to be performed or
                  satisfied at or prior to the Closing Date;


                                      -15-
<PAGE>


                           (ii) no stop order suspending the effectiveness of
                  the Registration Statement has been issued and no proceedings
                  for that purpose have been instituted or, to the Company's
                  knowledge, threatened; and

                           (iii) since the date of the most recent financial
                  statements included or incorporated by reference in the Final
                  Prospectus (exclusive of any supplement thereto), there has
                  been no material adverse effect on the condition (financial or
                  otherwise), prospects, earnings, business or properties of the
                  Company and its Subsidiaries, taken as a whole, whether or not
                  arising from transactions in the ordinary course of business,
                  except as set forth or contemplated in the Final Prospectus
                  (exclusive of any supplement thereto).

                  (f) The Company shall have requested and caused Arthur
         Andersen LLP to have furnished to the Representatives, at the Execution
         Time and at the Closing Date, letters (which may refer to letters
         previously delivered to one or more of the Representatives), dated
         respectively as of the Execution Time and as of the Closing Date, in
         form and substance satisfactory to the Representatives, confirming that
         they are independent accountants within the meaning of the Act and the
         Exchange Act and the respective applicable rules and regulations
         adopted by the Commission thereunder and that they have performed a
         review of the unaudited interim financial information of the Company
         for the nine-month period ended September 30, 2001 and as at September
         30, 2001 in accordance with Statement on Auditing Standards No. 71, and
         stating in effect, except as provided in Schedule I hereto, that:

                           (i) in their opinion the audited financial statements
                  and financial statement schedules included or incorporated by
                  reference in the Registration Statement and the Final
                  Prospectus and reported on by them comply as to form in all
                  material respects with the applicable accounting requirements
                  of the Act and the Exchange Act and the related rules and
                  regulations adopted by the Commission;

                           (ii) on the basis of a reading of the latest
                  unaudited financial statements made available by the Company
                  and its subsidiaries; their limited review, in accordance with
                  standards established under Statement on Auditing Standards
                  No. 71, of the unaudited interim financial information for the
                  nine-month period ended September 30, 2001 and as at September
                  30, 2001; carrying out certain specified procedures (but not
                  an examination in accordance with generally accepted auditing
                  standards) which would not necessarily reveal matters of
                  significance with respect to the comments set forth in such
                  letter; a reading of the minutes of the meetings of the
                  stockholders, directors and audit committee of the Company and
                  the subsidiaries; and inquiries of certain officials of the
                  Company who have responsibility for financial and accounting
                  matters of the Company and its subsidiaries as to transactions
                  and events subsequent to September 30, 2001, nothing came to
                  their attention which caused them to believe that:


                                      -16-
<PAGE>


                                    (1) any unaudited financial statements
                           included or incorporated by reference in the
                           Registration Statement and the Final Prospectus do
                           not comply as to form in all material respects with
                           applicable accounting requirements of the Act and
                           with the related rules and regulations adopted by the
                           Commission with respect to financial statements
                           included or incorporated by reference in quarterly
                           reports on Form 10-Q under the Exchange Act; and said
                           unaudited financial statements are not in conformity
                           with generally accepted accounting principles applied
                           on a basis substantially consistent with that of the
                           audited financial statements included or incorporated
                           by reference in the Registration Statement and the
                           Final Prospectus;

                                    (2) with respect to the period subsequent to
                           September 30, 2001, there were any changes, at a
                           specified date not more than five days prior to the
                           date of the letter, in the long-term debt of the
                           Company and its subsidiaries or capital stock of the
                           Company or decreases in consolidated net current
                           assets (working capital) or stockholders' equity of
                           the Company as compared with the amounts shown on the
                           September 30, 2001 consolidated balance sheet
                           included or incorporated by reference in the
                           Registration Statement and the Final Prospectus, or
                           for the period from October 1, 2001 to November 15,
                           2001 there were any decreases, as compared with the
                           corresponding period in the preceding year in
                           consolidated revenues or in net income or earnings
                           per share of the Company and its subsidiaries, except
                           in all instances for changes or decreases set forth
                           in such letter, in which case the letter shall be
                           accompanied by an explanation by the Company as to
                           the significance thereof unless said explanation is
                           not deemed necessary by the Representatives; or

                                    (3) the information included or incorporated
                           by reference in the Registration Statement and Final
                           Prospectus in response to Regulation S-K, Item 301
                           (Selected Financial Data) and Item 503(d) (Ratio of
                           Earnings to Fixed Charges) is not in conformity with
                           the applicable disclosure requirements of Regulation
                           S-K; and

                           (iii) they have performed certain other specified
                  procedures as a result of which they determined that certain
                  information of an accounting, financial or statistical nature
                  (which is limited to accounting, financial or statistical
                  information derived from the general accounting records of the
                  Company and its subsidiaries) set forth in the Registration
                  Statement and the Final Prospectus and in Exhibit 12 to the
                  Registration Statement, the information included or
                  incorporated by reference in Items 1, 2, 6, 7 and 11 of the
                  Company's Annual Report on Form 10-K, incorporated by
                  reference in the Registration Statement and the Final
                  Prospectus, and the information included in the "Management's
                  Discussion and Analysis of Financial Condition and Results of
                  Operations" included or incorporated by reference in the
                  Company's Quarterly Reports on Form 10-Q, incorporated by
                  reference in the Registration Statement and the Final


                                      -17-
<PAGE>


                  Prospectus, agrees with the accounting records of the Company
                  and its subsidiaries, excluding any questions of legal
                  interpretation.

                  References to the Final Prospectus in this paragraph (f)
         include any supplement thereto at the date of the letter.

                  (g) Subsequent to the Execution Time or, if earlier, the dates
         as of which information is given in the Registration Statement
         (exclusive of any amendment thereof) and the Final Prospectus
         (exclusive of any supplement thereto), there shall not have been (i)
         any change or decrease specified in the letter or letters referred to
         in paragraph (f) of this Section 6 or (ii) any change, or any
         development involving a prospective change, in or affecting the
         condition (financial or otherwise), earnings, business or properties of
         the Company and its Subsidiaries, taken as a whole, whether or not
         arising from transactions in the ordinary course of business, except as
         set forth or contemplated in the Final Prospectus (exclusive of any
         supplement thereto) the effect of which, in any case referred to in
         clause (i) or (ii) above, is, in the sole judgment of the
         Representatives, so material and adverse as to make it impractical or
         inadvisable to proceed with the offering or delivery of the Securities
         as contemplated by the Registration Statement (exclusive of any
         amendment thereof) and the Final Prospectus (exclusive of any
         supplement thereto).

                  (h) Subsequent to the Execution Time, there shall not have
         been any decrease in the rating of any of the Company's debt securities
         by any "nationally recognized statistical rating organization" (as
         defined for purposes of Rule 436(g) under the Act) or any notice given
         of any intended or potential decrease in any such rating or of a
         possible change in any such rating that does not indicate the direction
         of the possible change.

                  (i) Prior to the Closing Date, the Company shall have
         furnished to the Representatives such further information, certificates
         and documents as the Representatives may reasonably request.

         If any of the conditions specified in this Section 6 shall not have
been fulfilled in all material respects when and as provided in this Agreement,
or if any of the opinions and certificates mentioned above or elsewhere in this
Agreement shall not be in all material respects reasonably satisfactory in form
and substance to the Representatives and counsel for the Underwriters, this
Agreement and all obligations of the Underwriters hereunder may be canceled at,
or at any time prior to, the Closing Date by the Representatives. Notice of such
cancellation shall be given to the Company in writing or by telephone or
facsimile confirmed in writing.

         The documents required to be delivered by this Section 6 shall be
delivered at the office of Baker Botts L.L.P., counsel for the Company, at One
Shell Plaza, 910 Louisiana Street, Houston, Texas 77002, on the Closing Date.

         7. Reimbursement of Underwriters' Expenses. If the sale of the
Securities provided for herein is not consummated because any condition to the
obligations of the Underwriters set forth in Section 6 hereof is not satisfied,
because of any termination pursuant to Section 10(i) hereof (other than as a
result of the occurrence of the circumstances in Section 10(ii) hereof) or
because of any refusal, inability or failure on the part of the Company to
perform any agreement


                                      -18-
<PAGE>


herein or comply with any provision hereof other than by reason of a default by
any of the Underwriters, the Company will reimburse the Underwriters severally
through Banc of America Securities LLC, J.P. Morgan Securities Inc. and Salomon
Smith Barney Inc. on demand for all out-of-pocket expenses (including reasonable
fees and disbursements of counsel) that shall have been incurred by them in
connection with the proposed purchase and sale of the Securities.

         8. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless each Underwriter, the directors, officers, employees
and agents of each Underwriter and each person who controls any Underwriter
within the meaning of either the Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any
of them may become subject under the Act, the Exchange Act or other Federal or
state statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the registration statement for the registration of
the Securities as originally filed or in any amendment thereof, or in the Basic
Prospectus, any Preliminary Final Prospectus or the Final Prospectus, or in any
amendment thereof or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
agrees to reimburse each such indemnified party, as incurred, for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished to
the Company by or on behalf of any Underwriter through the Representatives
specifically for inclusion therein. This indemnity agreement will be in addition
to any liability which the Company may otherwise have.

                  (b) Each Underwriter severally and not jointly agrees to
indemnify and hold harmless the Company, each of its directors, each of its
officers who signs the Registration Statement, and each person who controls the
Company within the meaning of either the Act or the Exchange Act, to the same
extent as the foregoing indemnity from the Company to each Underwriter, but only
with reference to written information relating to such Underwriter furnished to
the Company by or on behalf of such Underwriter through the Representatives
specifically for inclusion in the documents referred to in the foregoing
indemnity. This indemnity agreement will be in addition to any liability which
any Underwriter may otherwise have. The Company acknowledges that the statements
set forth in the last paragraph of the cover page regarding delivery of the
Securities and, under the heading "Underwriting" or "Plan of Distribution," (i)
the list of Underwriters and their respective participation in the sale of the
Securities, (ii) the sentences related to concessions and reallowances, (iii)
the paragraph related to stabilization, syndicate covering transactions and
penalty bids and (iv) the paragraph relating to internet distribution of the
Securities in any Preliminary Final Prospectus and the Final Prospectus
constitute the only information furnished in writing by or on behalf of the
several Underwriters for inclusion in any Preliminary Final Prospectus or the
Final Prospectus.

                  (c) Promptly after receipt by an indemnified party under this
Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect


                                      -19-
<PAGE>


thereof is to be made against the indemnifying party under this Section 8,
notify the indemnifying party in writing of the commencement thereof; but the
failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraph (a) or (b)
above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party's choice at the indemnifying party's expense to represent the
indemnified party in any action for which indemnification is sought (in which
case the indemnifying party shall not thereafter be responsible for the fees and
expenses of any separate counsel retained by the indemnified party or parties
except as set forth below); provided, however, that such counsel shall be
reasonably satisfactory to the indemnified party. Notwithstanding the
indemnifying party's election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel if (i) the
use of counsel chosen by the indemnifying party to represent the indemnified
party would present such counsel with a conflict of interest, (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, (iii) the indemnifying party shall not have
employed counsel reasonably satisfactory to the indemnified party to represent
the indemnified party within a reasonable time after notice of the institution
of such action or (iv) the indemnifying party shall authorize the indemnified
party to employ separate counsel at the expense of the indemnifying party. An
indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
(i) includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding and (ii) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of an indemnified party. An indemnifying party shall not
be liable under this Section 8 to any indemnified party regarding any settlement
or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent is consented to by such
indemnifying party, which consent shall not be unreasonably withheld.

                  (d) In the event that the indemnity provided in paragraph (a)
or (b) of this Section 8 is unavailable to or insufficient to hold harmless an
indemnified party for any reason, the Company and the Underwriters severally
agree to contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with
investigating or defending same) (collectively, "Losses") to which the Company
and one or more of the Underwriters may be subject in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and by the Underwriters on the other from the


                                      -20-
<PAGE>


offering of the Securities; provided, however, that in no case shall any
Underwriter (except as may be provided in any agreement among underwriters
relating to the offering of the Securities) be responsible for any amount in
excess of the underwriting discount or commission applicable to the Securities
purchased by such Underwriter hereunder. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, the Company and
the Underwriters severally shall contribute in such proportion as is appropriate
to reflect not only such relative benefits but also the relative fault of the
Company on the one hand and of the Underwriters on the other in connection with
the statements or omissions which resulted in such Losses as well as any other
relevant equitable considerations. Benefits received by the Company shall be
deemed to be equal to the total net proceeds from the offering (before deducting
expenses) received by it, and benefits received by the Underwriters shall be
deemed to be equal to the total underwriting discounts and commissions, in each
case as set forth on the cover page of the Final Prospectus. Relative fault
shall be determined by reference to, among other things, whether any untrue or
any alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information provided by the Company
on the one hand or the Underwriters on the other, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. The Company and the Underwriters
agree that it would not be just and equitable if contribution were determined by
pro rata allocation or any other method of allocation which does not take
account of the equitable considerations referred to above. Notwithstanding the
provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters' obligations in this paragraph (d) to
contribute are several in proportion to their respective underwriting
obligations and not joint. For purposes of this Section 8, each person who
controls an Underwriter within the meaning of either the Act or the Exchange Act
and each director, officer, employee and agent of an Underwriter shall have the
same rights to contribution as such Underwriter, and each person who controls
the Company within the meaning of either the Act or the Exchange Act, each
officer of the Company who shall have signed the Registration Statement and each
director of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this
paragraph (d).

         9. Default by an Underwriter. If any one or more Underwriters shall
fail to purchase and pay for any of the Securities agreed to be purchased by
such Underwriter or Underwriters hereunder and such failure to purchase shall
constitute a default in the performance of its or their obligations under this
Agreement, the remaining Underwriters shall be obligated severally to take up
and pay for (in the respective proportions which the principal amount of
Securities set forth opposite their names in Schedule II hereto bears to the
aggregate principal amount of Securities set forth opposite the names of all the
remaining Underwriters) the Securities which the defaulting Underwriter or
Underwriters agreed but failed to purchase; provided, however, that in the event
that the aggregate principal amount of Securities which the defaulting
Underwriter or Underwriters agreed but failed to purchase shall exceed 10% of
the aggregate principal amount of Securities set forth in Schedule II hereto,
the remaining Underwriters shall have the right to purchase all, but shall not
be under any obligation to purchase any, of the Securities, and if such
nondefaulting Underwriters do not purchase all the Securities, this Agreement
will terminate without liability to any nondefaulting Underwriter or the
Company. In the event of a default by any Underwriter as set forth in this
Section 9, the Closing Date shall be


                                      -21-
<PAGE>


postponed for such period, not exceeding five Business Days, as the
Representatives shall determine in order that the required changes in the
Registration Statement and the Final Prospectus or in any other documents or
arrangements may be effected. Nothing contained in this Agreement shall relieve
any defaulting Underwriter of its liability, if any, to the Company and any
nondefaulting Underwriter for damages occasioned by its default hereunder.

         10. Termination. This Agreement shall be subject to termination in the
absolute discretion of the Representatives, by notice given to the Company prior
to delivery of and payment for the Securities, if at any time prior to such time
(i) trading in the Company's Common Stock shall have been suspended by the
Commission, (ii) trading in securities generally on the New York Stock Exchange
shall have been suspended or limited or minimum prices shall have been
established on such Exchange, (iii) a banking moratorium shall have been
declared either by Federal or New York State authorities or (iv) there shall
have occurred any material change in the financial markets or any outbreak or
escalation of hostilities, declaration by the United States of a national
emergency or war, or other calamity or crisis the effect of which on financial
markets is such as to make it, in the sole judgment of the Representatives,
impractical or inadvisable to proceed with the offering or delivery of the
Securities as contemplated by the Final Prospectus (exclusive of any supplement
thereto).

         11. Representations and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Underwriters set forth in or made pursuant to
this Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or the Company or any of
the officers, directors, employees, agents or controlling persons referred to in
Section 8 hereof, and will survive delivery of and payment for the Securities.
The provisions of Sections 7 and 8 hereof shall survive the termination or
cancellation of this Agreement.

         12. Notices. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Representatives, will be mailed,
delivered or telefaxed to Banc of America Securities LLC, Attention: Debt
Capital Markets (fax no.: (704) 388-9939) and confirmed to Banc of America
Securities LLC, at Bank of America Corp. Center, 100 North Tryon Street,
Charlotte, North Carolina 28255, Attention: Debt Capital Markets; J.P. Morgan
Securities Inc., Attention: Debt Capital Markets - 9th Floor (fax no.: (212)
834-6170) and confirmed to J.P. Morgan Securities Inc., at 270 Park Avenue, New
York, New York 10017, Attention: Debt Capital Markets - 9th Floor; Salomon Smith
Barney Inc. General Counsel (fax no.: (212) 816-7912) and confirmed to the
General Counsel, Salomon Smith Barney Inc., at 388 Greenwich Street, New York,
New York 10013, Attention: General Counsel; or, if sent to the Company, will be
mailed, delivered or telefaxed to the Waste Management, Inc. General Counsel
(fax no.: (713) 209-9710) and confirmed to it at 1001 Fannin, Suite 4000,
attention of the Legal Department.

         13. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
officers, directors, employees, agents and controlling persons referred to in
Section 8 hereof, and no other person will have any right or obligation
hereunder.


                                      -22-
<PAGE>


         14. Applicable Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed within the State of New York.

         15. Counterparts. This Agreement may be signed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same agreement.

         16. Headings. The section headings used herein are for convenience only
and shall not affect the construction hereof.

         17. Definitions. The terms which follow, when used in this Agreement,
shall have the meanings indicated.

                  "Act" shall mean the Securities Act of 1933, as amended, and
         the rules and regulations of the Commission promulgated thereunder.

                  "Basic Prospectus" shall mean the prospectus referred to in
         paragraph 1(a) above contained in the Registration Statement at the
         Effective Date including any Preliminary Final Prospectus.

                  "Business Day" shall mean any day other than a Saturday, a
         Sunday or a legal holiday or a day on which banking institutions or
         trust companies are authorized or obligated by law to close in New York
         City or Houston, Texas.

                  "Commission" shall mean the Securities and Exchange
         Commission.

                  "Effective Date" shall mean each date and time that the
         Registration Statement, any post-effective amendment or amendments
         thereto and any Rule 462(b) Registration Statement became or become
         effective.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
         as amended, and the rules and regulations of the Commission promulgated
         thereunder.

                  "Execution Time" shall mean the date and time that this
         Agreement is executed and delivered by the parties hereto.

                  "Final Prospectus" shall mean the prospectus supplement
         relating to the Securities that was first filed pursuant to Rule 424(b)
         after the Execution Time, together with the Basic Prospectus.

                  "1935 Act" shall mean the Public Utility Holding Company Act
         of 1935, as amended.

                  "Preliminary Final Prospectus" shall mean any preliminary
         prospectus supplement to the Basic Prospectus which describes the
         Securities and the offering thereof and is used prior to filing of the
         Final Prospectus, together with the Basic Prospectus.


                                      -23-
<PAGE>


                  "Registration Statement" shall mean the registration statement
         referred to in paragraph 1(a) above, including exhibits and financial
         statements, as amended at the Execution Time (or, if not effective at
         the Execution Time, in the form in which it shall become effective)
         and, in the event any post-effective amendment thereto or any Rule
         462(b) Registration Statement becomes effective prior to the Closing
         Date, shall also mean such registration statement as so amended or such
         Rule 462(b) Registration Statement, as the case may be. Such term shall
         include any Rule 430A Information deemed to be included therein at the
         Effective Date as provided by Rule 430A.

                  "Rule 415," "Rule 424," "Rule 430A" and "Rule 462" refer to
         such rules under the Act.

                  "Rule 430A Information" shall mean information with respect to
         the Securities and the offering thereof permitted to be omitted from
         the Registration Statement when it becomes effective pursuant to Rule
         430A.

                  "Rule 462(b) Registration Statement" shall mean a registration
         statement and any amendments thereto filed pursuant to Rule 462(b)
         relating to the offering covered by the registration statement referred
         to in Section 1(a) hereof.

                  "Trust Indenture Act" shall mean the Trust Indenture Act of
         1939, as amended and the rules and regulations of the Commission
         promulgated thereunder.

         18. Consent to Representation. The Company and the Underwriters
acknowledge that Vinson & Elkins L.L.P., which is acting as counsel to the
Underwriters in connection with the offer and sale of the Securities, also acts
as counsel from time to time to the Company and certain of its affiliates in
connection with unrelated matters. The Company and the Underwriters consent to
Vinson & Elkins L.L.P. so acting as counsel to the Underwriters.



                                      -24-
<PAGE>


         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among the
Company and the several Underwriters.

                                               Very truly yours,

                                               WASTE MANAGEMENT, INC.


                                               By   /s/ WILLIAM L. TRUBECK
                                                 -------------------------------
                                                 Name:  William L. Trubeck
                                                 Title: Executive Vice President
                                                        and Chief Financial
                                                        Officer


THE FOREGOING AGREEMENT IS HEREBY
CONFIRMED AND ACCEPTED AS OF THE DATE
SPECIFIED IN SCHEDULE I HERETO.

BANC OF AMERICA SECURITIES LLC
J.P. MORGAN SECURITIES INC.
SALOMON SMITH BARNEY INC.


BY:      BANC OF AMERICA SECURITIES LLC


By       /s/ LILY CHANG
  ---------------------------------------------------
     Name:   Lily Chang
     Title:  Principal


BY:      J.P. MORGAN SECURITIES INC.


By      /s/ MARIA SRAMEK
  ---------------------------------------------------
     Name:  Maria Sramek
     Title: Vice President


BY:      SALOMON SMITH BARNEY INC.


By      /s/ JOHN SHAFER III
  ---------------------------------------------------
     Name:  John Shafer III
     Title: Vice President

For themselves and the other several Underwriters,
if any, named in Schedule II to the foregoing
Agreement.



                                      -25-
<PAGE>


                                   SCHEDULE I



Underwriting Agreement dated:  November 15, 2001

Registration Statement No.:  333-80063

Representative(s):         Banc of America Securities LLC
                           J.P. Morgan Securities Inc.
                           Salomon Smith Barney Inc.

Title, Purchase Price and Description of Securities:

         Title:  6 1/2% Senior Notes Due 2008

         Principal amount:  $400,000,000

         Purchase price (include accrued
           interest or amortization, if
           any, from November 20, 2001): 98.984%

         Sinking fund provisions:  None

         Redemption provisions:  Make Whole Call + 25bp

         Other provisions:  As provided in the Indenture

Closing Date, Time and Location: November 20, 2001 at 8:30 a.m. CST at the
offices of Baker Botts L.L.P., One Shell Plaza, 910 Louisiana Street, Houston,
Texas 77002

Type of Offering:  Non-delayed

Date referred to in Section 5(f) after which the Company
  may offer or sell debt securities issued or guaranteed
  by the Company without the consent of the Representative(s): December 15, 2001

Modification of items to be covered by the letter from
  Arthur Andersen LLP delivered pursuant to
  Section 6(f) at the Execution Time:  None



<PAGE>


                                   SCHEDULE II

<Table>
<Caption>

                                                               PRINCIPAL AMOUNT
                                                                OF SECURITIES
UNDERWRITERS                                                   TO BE PURCHASED
------------                                                   ----------------
<S>                                                             <C>
Banc of America Securities LLC...............................   $   106,668,000
J.P. Morgan Securities Inc...................................   $   106,666,000
Salomon Smith Barney Inc.....................................   $   106,666,000
ABN AMRO Incorporated........................................   $    10,000,000
Credit Suisse First Boston Corporation.......................   $    10,000,000
Fleet Securities, Inc........................................   $    10,000,000
Goldman, Sachs & Co..........................................   $    10,000,000
Lehman Brothers Inc..........................................   $    10,000,000
Merrill Lynch, Pierce, Fenner & Smith
           Incorporated......................................   $    10,000,000
Morgan Stanley & Co. Incorporated............................   $    10,000,000
PNC Capital Markets, Inc.....................................   $    10,000,000

                  TOTAL......................................   $   400,000,000
                                                                ================
</Table>



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>4
<FILENAME>h92483ex4-1.txt
<DESCRIPTION>FORM OF BOOK-ENTRY NOTE - 6 1/2% SENIOR NOTES
<TEXT>
<PAGE>
                                                                     EXHIBIT 4.1

                               BOOK-ENTRY SECURITY

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

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

RGN-1                                                           Principal Amount

                        WASTE MANAGEMENT, INC. U.S.                 $400,000,000

                          6 1/2% SENIOR NOTES DUE 2008


         WASTE MANAGEMENT, INC., a Delaware corporation (the "Company," which
term includes any successors under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & CO. or registered assigns, at
the office or agency of the Company, the principal sum of Four Hundred Million
($400,000,000) U.S. dollars, or such lesser principal sum as is shown on the
attached Schedule of Exchanges of Definitive Security, on November 15, 2008 in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts, and to pay
interest at an annual rate of 6 1/2% payable on May 15 and November 15 of each
year, to the person in whose name this Security is registered at the close of
business on the record date for such interest, which shall be the preceding May
1 or November 1, respectively, payable commencing May 15, 2002 with interest
consisting of interest accrued from November 20, 2001.


<PAGE>


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

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

         This Security is issued in respect of a series of Securities of an
initial aggregate of U.S. $400,000,000 in principal amount designated as the
6 1/2% Senior Notes due 2008 of the Company and is governed by the Indenture
dated as of September 10, 1997, duly executed and delivered by the Company,
formerly known as USA Waste Services, Inc., to JPMorgan Chase Bank, as successor
to The Chase Manhattan Bank, as trustee (the "Trustee"), as supplemented by
Board Resolutions (as defined in the Indenture) (such Indenture and Board
Resolutions, collectively, the "Indenture"). The terms of the Indenture are
incorporated herein by reference. This Security shall in all respects be
entitled to the same benefits as definitive Securities under the Indenture.

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

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


                                       2
<PAGE>


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

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

Dated:  November 20, 2001                      WASTE MANAGEMENT, INC.,
                                               a Delaware corporation



                                               By:
                                                  ------------------------------
                                                   William L. Trubeck
                                                   Executive Vice President and
                                                   Chief Financial Officer


                                               Attest:

                                               By:
                                                  ------------------------------
                                                  Linda J. Smith
                                                  Assistant Secretary


CERTIFICATE OF AUTHENTICATION

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



Date of Authentication:  November 20, 2001     JPMORGAN CHASE BANK,
                                               as Trustee

                                               By:
                                                  ------------------------------
                                                  Lynda Gunther
                                                  Assistant Vice President and
                                                  Trust Officer

                                       3
<PAGE>


                         REVERSE OF BOOK-ENTRY SECURITY

                             WASTE MANAGEMENT, INC.

                          6 1/2% SENIOR NOTES DUE 2008

         This Security is one of a duly authorized issue of unsecured
debentures, notes or other evidences of indebtedness of the Company (the "Debt
Securities") of the series hereinafter specified, all issued or to be issued
under and pursuant to the Indenture, to which Indenture reference is hereby made
for a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the Debt
Securities. The Debt Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest (if any) at different rates, may be
subject to different sinking, purchase or analogous funds (if any) and may
otherwise vary as provided in the Indenture. This Security is one of a series
designated as the 6 1/2% Senior Notes due 2008 of the Company, in initial
aggregate principal amount of $400,000,000 (the "Securities").

1.       Interest.

         The Company promises to pay interest on the principal amount of this
Security at the rate of 6 1/2% per annum.

         The Company will pay interest semi-annually on May 15 and November 15
of each year (each an "Interest Payment Date"), commencing May 15, 2002.
Interest on the Securities will accrue from the most recent date to which
interest has been paid or, if no interest has been paid on the Securities, from
November 20, 2001. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. The Company shall pay interest (including
post-petition interest in any proceeding under any applicable bankruptcy laws)
on overdue installments of interest (without regard to any applicable grace
period) and on overdue principal and premium, if any, from time to time on
demand at the rate of 6 1/2% per annum, in each case to the extent lawful.

2.       Method of Payment.

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


                                       4
<PAGE>

specified by the Depository. Payments in respect of Securities in definitive
form (including principal, premium, if any, and interest) will be made at the
office or agency of the Company maintained for such purpose within the Borough
of Manhattan, The City of New York, which initially will be at the corporate
trust office of the Trustee located at 55 Water Street, Room 234, New York, New
York, or at the option of the Company, payment of interest may be made by check
mailed to the Holders on the Regular Record Date or on the Special Record Date
at their addresses set forth in the Security Register of Holders.

3.       Paying Agent and Registrar.

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

4.       Indenture.

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

         Capitalized terms herein are used as defined in the Indenture unless
otherwise defined herein. The terms of the Securities include those stated in
the Indenture, all indentures supplemental thereto, those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended, as in
effect on the date of the Indenture, and those terms stated in the Officers'
Certificate to the Trustee, duly authorized by resolutions of the Board of
Directors of the Company on April 30, 1999, May 14, 1999 and November 3, 2001
(the "Resolutions"). The Securities are subject to all such terms, and Holders
of Securities are referred to the Indenture, all indentures supplemental
thereto, said Act and said Resolutions and Officers' Certificate for a statement
of them. The Securities of this series are general unsecured obligations of the
Company limited with an initial aggregate principal amount of $400,000,000.

5.       Redemption.

         The Securities will be redeemable, at the option of the Company, at any
time in whole, or from time to time in part, at a Redemption Price (the
"Make-Whole Price") equal to the greater of: (i) 100% of the principal amount of
the Securities to be redeemed; or (ii) the sum of the present values of the
remaining scheduled payments of principal and interest (at the rate in effect on
the date of calculation of the Redemption Price) on the Securities (exclusive of
interest accrued to the Redemption Date) discounted to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the applicable Treasury Yield plus 25 basis points; plus, in either case,
accrued interest to the Redemption Date.

         Securities called for redemption become due on the Redemption Date.
Notices of redemption will be mailed at least 30 but not more than 60 days
before the Redemption Date to each holder of record of the Securities to be
redeemed at its registered address. The notice of redemption for the Securities
will state, among other things, the amount of Securities to be redeemed, the
Redemption Date, the Make-Whole Price and the place(s) that payment will be made
upon presentation and surrender of Securities to be redeemed. Unless the Company


                                       5
<PAGE>

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

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

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

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

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

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

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

         "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date for the Securities, an
average, as determined by the Trustee, of the bid and asked prices for the
Comparable Treasury Issue for the Securities (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such
Reference


                                       6
<PAGE>

Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding such Redemption Date.

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

         The Securities may be redeemed in part in multiplies of $1,000 only.

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

6.       Denominations; Transfer; Exchange.

         The Securities are issued in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder may register
the transfer of, or exchange, Securities in accordance with the Indenture. The
Securities Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture.

7.       Person Deemed Owners.

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

8.       Amendment; Supplement; Waiver.

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

9.       Defaults and Remedies.

         If an Event of Default with respect to the Securities occurs and is
continuing, then in every such case the Trustee or the Holders of not less than
25% in principal amount of the Securities then Outstanding may declare the
principal amount of all the Securities to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the
preceding sentence, however, if at any time after such a declaration of
acceleration has been made and before judgment or decree for payment of the
money due has been obtained by the Trustee as provided in the Indenture, the
Holders of a majority in principal amount of the Outstanding Securities, by
written notice to the Company and to the Trustee, may rescind and annul such
declaration and its consequences if (1) the Company has paid or deposited with
the Trustee a sum sufficient to pay (A) all overdue interest on all Securities,


                                       7
<PAGE>

(B) the principal of (and premium, if any, on) any Securities which has become
due otherwise than by such declaration of acceleration and any interest thereon
at the rate prescribed therefor herein, (C) to the extent that payment of such
interest is lawful, interest upon overdue interest at the rate prescribed
therefor herein, and (D) all sums paid or advanced by the Trustee and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel and (2) all Events of Default under the Indenture with
respect to the Securities, other than the nonpayment of the principal of
Securities which has become due solely by such declaration acceleration, shall
have been cured or shall have been waived. No such rescission shall affect any
subsequent default or shall impair any right consequent thereon. Holders of
Securities may not enforce the Indenture or the Securities except as provided in
the Indenture. The Trustee may require indemnity satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations,
Holders of a majority in aggregate principal amount of the Securities then
outstanding may direct the Trustee in its exercise of any trust or power.

10.      Trustee Dealings with Company.

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

11.      Authentication.

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

12.      Abbreviations and Defined Terms.

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

13.      CUSIP Numbers.

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

14.      Absolute Obligation.

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



                                       8
<PAGE>

15.      No Recourse.

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

16.      Governing Law.

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


                                       9
<PAGE>


                  SCHEDULE OF EXCHANGES OF DEFINITIVE SECURITY

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

<Table>
<Caption>

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



</Table>


                                       10





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>5
<FILENAME>h92483ex4-2.txt
<DESCRIPTION>OFFICERS' CERTIFICATE
<TEXT>
<PAGE>
                                                                     EXHIBIT 4.2

                             WASTE MANAGEMENT, INC.

                   OFFICERS' CERTIFICATE DELIVERED PURSUANT TO
           SECTION 301 OF THE INDENTURE DATED AS OF SEPTEMBER 10, 1997

                  The undersigned, the Executive Vice President and Chief
Financial Officer, and the Senior Vice President, General Counsel and Corporate
Secretary of Waste Management, Inc. (the "Company"), hereby certify that:

                  1. This Certificate is delivered to JPMorgan Chase Bank, as
         successor to The Chase Manhattan Bank, as trustee (the "Trustee"),
         pursuant to Sections 102 and 301 of the Indenture dated as of September
         10, 1997 between the Company, formerly known as USA Waste Services,
         Inc., and the Trustee in connection with the Company Order dated
         November 20, 2001 (the "Order") for the authentication and delivery by
         the Trustee of $400,000,000 aggregate principal amount of 6 1/2% Notes
         due 2008 ("Notes").

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

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

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

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

                  6. All conditions precedent provided in the Indenture to the
         authentication by the Trustee of $400,000,000 aggregate principal
         amount of Notes have been complied with, and such Debt Securities may
         be delivered in accordance with the Order as provided in the Indenture.

                  7. The terms of the Notes (including the Form of Note) as set
         forth in Annex A to this Officers' Certificate have been approved by
         officers of the Company as duly authorized by resolutions of the Board
         of Directors of the Company as of April 30, 1999, May 14, 1999 and
         November 3, 2001 and such resolutions, copies of which are attached
         hereto as Annex B, are in full force and effect as of the date hereof.

<PAGE>

                  IN WITNESS WHEREOF, the undersigned has hereunto executed this
Certificate as of November 20, 2001.


                                   /s/ WILLIAM L. TRUBECK
                                   ---------------------------------------------
                                   William L. Trubeck
                                   Executive Vice President
                                   and Chief Financial Officer


                                   /s/ DAVID P. STEINER
                                   ---------------------------------------------
                                   David P. Steiner
                                   Senior Vice President, General Counsel
                                   and Corporate Secretary


<PAGE>

                                                                         ANNEX A


                               TERMS OF THE NOTES

         Pursuant to authority granted by the Board of Directors of the Company
on April 30, 1999, May 14, 1999 and November 3, 2001, the Company has approved
the establishment, issuance, execution and delivery of a new series of
Securities (as defined in the Indenture) to be issued under the Indenture dated
as of September 10, 1997 (the "Indenture"), between the Company, formerly known
as USA Waste Services, Inc., and JPMorgan Chase Bank, as successor to The Chase
Manhattan Bank, as trustee (the "Trustee"), the terms of which are set forth
below. Capitalized terms used but not defined herein are used herein as defined
in the Indenture.

         (1)      The title of the series of Securities shall be "6 1/2% Senior
                  Notes due 2008" (the "Notes").

         (2)      The Notes shall be general unsecured, senior obligations of
                  the Company.

         (3)      The initial aggregate principal amount of the Notes which may
                  be authenticated and delivered under the Indenture shall be
                  $400,000,000 (except for Notes authenticated and delivered
                  upon registration of transfer of, or in exchange for, or in
                  lieu of, other Notes pursuant to Section 304, 305, 306, 907 or
                  1107 of the Indenture).

         (4)      The principal amount of each Note shall be payable on November
                  15, 2008.

         (5)      Each Note shall bear interest from November 20, 2001 at the
                  fixed rate of 6 1/2% per annum; the interest payment dates on
                  which such interest shall be payable shall be May 15 and
                  November 15 ("Interest Payment Dates"), of each year,
                  commencing May 15, 2002, until maturity unless such date falls
                  on a day that is not a Business Day, in which case, such
                  payment shall be made on the next day that is a Business Day;
                  the record date for the determination of Holders to whom
                  interest is payable shall be May 1 or November 1,
                  respectively, immediately preceding such date, as the case
                  may be.

         (6)      The Notes are to be issued as Registered Securities. Each Note
                  is to be issued as a book-entry note ("Book-Entry Note") but
                  in certain circumstances may be represented by Notes in
                  definitive form. The Book-Entry Notes shall be issued, in
                  whole or in part, in the form of one or more Notes in global
                  form as contemplated by Section 203 of the Indenture. The
                  Depositary for such Notes shall be The Depository Trust
                  Company, New York, New York.

         (7)      Payments of principal of, premium, if any, and interest due on
                  the Notes representing Book-Entry Notes on any Interest
                  Payment Date or at maturity will be made available to the
                  Trustee by 11:00 a.m., New York

<PAGE>

                  City time, on such date, unless such date falls on a day which
                  is not a Business Day, in which case such payments will be
                  made available to the Trustee by 11:00 a.m., New York City
                  time, on the next Business Day. As soon as possible
                  thereafter, the Trustee will make such payments to the
                  Depositary.

         (8)      The Notes will be redeemable, at the option of the Company, at
                  any time in whole, or from time to time in part, at a
                  Redemption Price equal to the greater of (i) 100% of the
                  principal amount of the Notes to be redeemed or (ii) the sum
                  of the present value of the remaining scheduled payments of
                  principal and interest (at the rate in effect on the date of
                  calculation of the Redemption Price) thereon (exclusive of
                  interest accrued to the Redemption Date) discounted to the
                  Redemption Date on a semiannual basis (assuming a 360 day year
                  consisting of twelve 30-day months) at the applicable Treasury
                  Yield (as defined in the Notes) plus 25 basis points; plus, in
                  either case, accrued interest to the Redemption Date.

         (9)      The Notes shall not be redeemable through the operation of any
                  sinking fund or analogous provision.

         (10)     The Notes will be subject to defeasance and discharge as
                  contemplated by Section 1302 of the Indenture and to covenant
                  defeasance under Section 1303 of the Indenture.

         (11)     The Notes shall be entitled to the benefit of the covenants
                  contained in Sections 1008 and 1009 of the Indenture.

         (12)     The Trustee shall serve initially as Security Registrar for
                  the Notes.

         (13)     The Notes shall be substantially in the form of Exhibit A
                  hereto.



<PAGE>


                                    EXHIBIT A

                                       TO

                                 TERMS OF NOTES

                           [FORM OF BOOK-ENTRY NOTE]


<PAGE>
                                                                         ANNEX B

                       RESOLUTIONS OF BOARD OF DIRECTORS


                  WHEREAS, on September 7, 2001, the Board of Directors
         previously adopted resolutions authorizing certain officers of the
         Company to effect borrowings or securities offerings up to an aggregate
         of $600 million; and

                  WHEREAS, the Board of Directors desires to increase the
         aggregate amount the Company is authorized to borrow under such
         resolutions; and

                  WHEREAS, the Company anticipates that a portion of the
         financing will be through convertible notes, which may result in
         certain purchasers of such notes selling short or otherwise disposing
         of Company Common Stock (the "Common Stock"); and

                  WHEREAS, the Company desires to offset any imbalance position
         caused by the potential disposal of the Common Stock by implementing a
         stock buy-back program to repurchase shares of Common Stock on the open
         market ("Stock Buy-Back Program"), such repurchase of shares not to
         exceed $100 million in fair market value of the Common Stock and not to
         continue beyond thirty days past the closing of the offering;

                  NOW, THEREFORE, BE IT RESOLVED, that the resolutions adopted
         by the Board of Directors on September 7, 2001, authorizing certain
         officers of the Company to effect borrowings or securities offerings up
         to an aggregate of $600 million be, and they hereby are, superceded and
         rescinded; and

                  RESOLVED FURTHER, that the Chief Executive Officer, the Chief
         Financial Officer, the Treasurer, and the Secretary of the Company (the
         "Authorized Officers") be, and each of them hereby is, authorized, for
         and on behalf of the Company, to issue up to $800 Million (net proceeds
         to the Company) of debt securities, consisting of fixed maturity senior
         unsecured debt and zero coupon, subordinated convertible debt, each
         upon such terms and conditions as the Authorized Officers deem
         necessary or appropriate; and

                  RESOLVED FURTHER, that, for a period of up to thirty days
         subsequent to the closing of any debt offering contemplated hereby, the
         Company take the appropriate action to conduct a Stock Buy-Back Program
         through its stock transfer agent, Mellon Investor Services LLC, or
         through any other financial institution and upon such terms and
         conditions, including price, deemed appropriate by the Authorized


<PAGE>

         Officers, in accordance with applicable law, such repurchase of shares
         not to exceed $100 million in fair market value of the Common Stock;
         and

                  RESOLVED FURTHER, that such shares of Common Stock repurchased
         by the Company shall be retained in the Company's treasury; and

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

                  RESOLVED FURTHER, that the form of any additional resolutions
         required in connection with the borrowings of funds or the Stock
         Buy-Back Program described above be and hereby is approved and adopted,
         provided the Authorized Officers, on the advice of counsel, consider
         the adoption thereof necessary or advisable, in which case the
         Secretary of the Company is hereby directed to insert as an appendix
         hereto a copy of such resolutions, which shall thereupon be deemed to
         have been adopted by this Board of Directors with the same force and
         effect as if set out verbatim herein; and

                  RESOLVED FURTHER, that the Secretary and any Assistant
         Secretary of the Company be, and each of them hereby is, authorized and
         empowered, for and on behalf of the Company, to certify and attest any
         documents that such Secretary or any such Assistant Secretary may deem
         necessary, advisable or appropriate to consummate the transactions

<PAGE>

         contemplated by the documents heretofore authorized and approved,
         provided that such attestation shall not be required for the due
         authorization, execution and delivery or validity of the particular
         document; and

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





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5
<SEQUENCE>6
<FILENAME>h92483ex5.txt
<DESCRIPTION>OPINION OF BAKER BOTTS L.L.P.
<TEXT>
<PAGE>
                                                                       EXHIBIT 5


                        [BAKER BOTTS L.L.P. LETTERHEAD]

November 20, 2001



018484.0200

Banc of America Securities LLC
J.P. Morgan Securities Inc.
Salomon Smith Barney Inc.
ABN AMRO Incorporated
Credit Suisse First Boston Corporation
Fleet Securities, Inc.
Goldman, Sachs & Co.
Lehman Brothers Inc.
Merrill Lynch, Pierce, Fenner & Smith
            Incorporated
Morgan Stanley & Co. Incorporated
PNC Capital Markets, Inc.

c/o J.P. Morgan Securities Inc.
270 Park Avenue
New York, NY 10017

                             WASTE MANAGEMENT, INC.
                          6 1/2% SENIOR NOTES DUE 2008

Gentlemen:

                  This opinion is being furnished pursuant to Section 6(b) of
the Underwriting Agreement dated November 15, 2001 (the "Underwriting
Agreement") by and between Waste Management, Inc., a Delaware corporation (the
"Company"), and Banc of America Securities LLC, J.P. Morgan Securities Inc. and
Salomon Smith Barney Inc., as Representatives of the several Underwriters named
in Schedule II of the Underwriting Agreement (the "Underwriters"), relating to
the issuance and sale by the Company to the Underwriters of $400,000,000
aggregate principal amount of the Company's 6 1/2% Senior Notes due 2008 (the
"Notes") to be issued pursuant to an Indenture (the "Indenture") dated as of
September 10, 1997 between the Company, formerly known as USA Waste Services,
Inc., and JPMorgan Chase Bank, as successor to The Chase Manhattan Bank, as
trustee (the "Trustee"). Capitalized terms used but not defined herein shall
have the meaning ascribed to such terms in the Underwriting Agreement.

                  The Company has prepared and filed with the Securities and
Exchange Commission (the "Commission") a registration statement on Form S-3
(Registration No. 333-80063) for the registration under the Securities Act of
1933, as amended (the "Securities Act"),
<PAGE>
[BAKER BOTTS L.L.P. LETTERHEAD]

                                       2                       November 20, 2001


of the offering and sale of debt securities, including the Notes, from time to
time in accordance with Rule 415 of the rules and regulations under the
Securities Act. For purposes hereof, "Effective Date" means the date and time as
of which Post-Effective Amendment No. 1 to such registration statement was
declared effective by the Commission. Such registration statement, as amended
pursuant to the Securities Act, including all documents incorporated or deemed
incorporated by reference therein, is hereinafter referred to as the
"Registration Statement," and the Company's prospectus dated February 14, 2000,
as supplemented by the Company's prospectus supplement thereto dated November
15, 2001, all as first filed with the Commission pursuant to Rule 424(b) under
the Securities Act, including the documents incorporated by reference therein,
is hereinafter referred to as the "Final Prospectus."

                  We have examined the originals, or copies certified or
otherwise identified, of the Restated Certificate of Incorporation and Bylaws of
the Company, each as amended to date, corporate records of the Company and
certain subsidiaries, including minute books of the Company and certain
subsidiaries, as furnished to us by the Company, certificates of public
officials and of representatives of the Company, statutes and other instruments
and documents, as a basis for the opinions hereinafter expressed. In giving the
opinions set forth below, we have relied upon certificates, statements or other
representations of officers or authorized agents of the Company with respect to
the accuracy of the factual matters contained in or covered by such
certificates, statements or representations. In making our examination, we have
assumed that all signatures on all documents examined by us are genuine, all
documents submitted to us as originals are authentic and complete, all documents
submitted to us as certified or photostatic copies are true and correct copies
of the originals thereof and that all information submitted to us was accurate
and complete.

                  On the basis of the foregoing, and subject to the assumptions,
limitations, qualifications and exceptions set forth herein, we are of the
opinion that:

                  1. The Company is a corporation duly incorporated and validly
         existing in good standing under the laws of the State of Delaware.

                  2. The Company has corporate power and authority to own, lease
         and operate its properties and to conduct its business as described in
         the Final Prospectus and to execute and deliver and perform its
         obligations under the Underwriting Agreement.

                  3. The Underwriting Agreement has been duly authorized,
         executed and delivered by the Company.

                  4. The Indenture has been duly authorized, executed and
         delivered by the Company and (assuming the due authorization, execution
         and delivery thereof by the Trustee) constitutes a valid and binding
         agreement of the Company, enforceable against the Company in accordance
         with its terms, except as the enforcement thereof may be limited by
         bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
         or similar laws affecting enforcement of creditors' rights and remedies
         generally and except as enforcement thereof is subject to general
         principles of equity (regardless of whether enforcement is considered
         in a proceeding in equity or at law).
<PAGE>
[BAKER BOTTS L.L.P. LETTERHEAD]

                                       3                       November 20, 2001


                  5. The global certificate representing the Notes is in a form
         authorized by the Indenture, the Notes have been duly authorized by the
         Company and, assuming the global certificate representing the Notes has
         been authenticated by the Trustee in the manner provided for in the
         Indenture and delivered against payment of the consideration therefor
         specified in the Underwriting Agreement, the Notes constitute valid and
         binding obligations of the Company, enforceable against the Company in
         accordance with their terms, except as the enforcement thereof may be
         limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
         moratorium or similar laws affecting enforcement of creditors' rights
         and remedies generally and except as enforcement thereof is subject to
         general principles of equity (regardless of whether enforcement is
         considered in a proceeding in equity or at law), and each registered
         holder thereof is entitled to the benefits of the Indenture.

                  6. The Indenture has been duly qualified under the 1939 Act.

                  7. The Notes and the Indenture conform as to legal matters in
         all material respects to the descriptions thereof contained in the
         Final Prospectus.

                  8. The Registration Statement has been declared effective
         under the Act; any required filing of the Final Prospectus pursuant to
         Rule 424(b) has been made in the manner and within the time period
         required by Rule 424(b); and, to the best of our knowledge, no stop
         order suspending the effectiveness of the Registration Statement has
         been issued and no proceedings for that purpose have been instituted or
         are pending or threatened under the Act.

                  9. No authorization, approval, consent or license of any
         regulatory body or authority (other than under the Act, the 1939 Act
         and the securities or Blue Sky laws of the various states) and no
         approval of the stockholders of the Company is required for the valid
         authorization, issuance, sale and delivery of the Notes by the Company,
         or performance of the Indenture.

                 10. The execution and delivery of the Underwriting Agreement,
         the consummation of the transactions contemplated in the Underwriting
         Agreement and compliance with the terms of the Underwriting Agreement
         and the Indenture, do not and will not conflict with or result in a
         breach of any of the terms or provisions of, or constitute a default
         under, the charter or by-laws of the Company or its subsidiaries listed
         on Schedule I (the "Subsidiaries"), or any indenture, mortgage or other
         agreement or instrument to which the Company or its Subsidiaries is a
         party or by which they or any of their property is bound that is filed
         as an exhibit to the Registration Statement or to any of the documents
         incorporated by reference in the Final Prospectus, or any existing
         applicable laws, rule, regulation (excluding any securities or
         anti-fraud law, rule or regulation).

                 11. The Company is not an "investment company" or an entity
         "controlled" by an "investment company," as such terms are defined in
         the 1940 Act.
<PAGE>
[BAKER BOTTS L.L.P. LETTERHEAD]

                                       4                       November 20, 2001


                 12. Neither the Company nor any subsidiary is a "holding
         company" or a "public utility," as such terms are defined in the 1935
         Act.

                  On the basis of our review described below, we also advise you
that the Registration Statement and the Final Prospectus, excluding the
documents incorporated by reference therein and the financial statements and
other financial data and supporting schedules included therein or omitted
therefrom and the Trustee's Statement of Eligibility on Form T-1, as to which we
have not been asked to comment, as of the Effective Date and its issue date,
respectively, appear on their face to have been appropriately responsive in all
material respects with the requirements of the Securities Act.

                  In addition, we have participated in conferences with officers
and other representatives of the Company, counsel employed by the Company,
representatives of the independent public accountants of the Company,
representatives of the Underwriters and counsel to the Underwriters at which the
contents of the Registration Statement and the Final Prospectus were discussed
and, although we did not independently verify such information and are not
passing upon and do not assume any responsibility for the accuracy, completeness
or fairness of the statements contained in the Registration Statement and the
Final Prospectus (other than as set forth in paragraph 7 above), on the basis of
the foregoing, no facts came to our attention that led us to believe that the
Registration Statement (other than the financial statements, the notes thereto
and the auditors' reports thereon and the related schedules and the other
financial and accounting data included or incorporated by reference therein, or
omitted therefrom, and the exhibits thereto, as to which we have not been asked
to comment) as of the date of the Underwriting Agreement contained an untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein not
misleading, or that the Final Prospectus (other than the financial statements,
the notes thereto and the auditors' reports thereon and the related schedules
and the other financial and accounting data included or incorporated by
reference therein, or omitted therefrom, as to which we have not been asked to
comment) as of its issue date or the Closing Date contained or contains an
untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

                  The opinions set forth above are limited in all respects to
matters of the laws of the State of Texas, the contract law of the State of New
York, the General Corporation Law of the State of Delaware and applicable
federal law of the United States, each as in effect on the date hereof. The
opinions set forth above are solely for the benefit of the Underwriters in
connection with the transactions consummated on the date hereof pursuant to the
Underwriting Agreement and may be relied upon only by the Underwriters named
therein and may not be relied upon by any other person or for any other purpose.
This opinion speaks as of the date hereof, and we disclaim any obligation to
update this opinion.

                                    Very truly yours,


                                    /s/ BAKER BOTTS L.L.P.

JDK/ERH

<PAGE>
[BAKER BOTTS L.L.P. LETTERHEAD]

                                       5                       November 20, 2001


SCHEDULE I

                           SUBSIDIARIES OF THE COMPANY



Waste Management Holdings, Inc.

Wheelabrator Technologies, Inc.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>7
<FILENAME>h92483ex23.txt
<DESCRIPTION>CONSENT OF ARTHUR ANDERSEN LLP
<TEXT>
<PAGE>
                                                                      EXHIBIT 23


                    CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS


         As independent public accountants, we hereby consent to the
incorporation by reference of our report dated March 7, 2001, included in Waste
Management, Inc.'s Annual Report on Form 10-K for the year ended December 31,
2000, into the Prospectus Supplement dated November 15, 2001 relating to the
Registration Statement on Form S-3 (Registration No. 333-80063) and all
references to our Firm included in the Prospectus Supplement and Registration
Statement.

                                               ARTHUR ANDERSEN LLP

/s/ ARTHUR ANDERSON LLP

Houston, Texas
November 15, 2001

</TEXT>
</DOCUMENT>
</SUBMISSION>
