Document:

<PAGE>

                                                                    Exhibit 10.2

                         Amendment and Waiver Agreement

     This Amendment and Waiver Agreement (this "Agreement"), dated as of July
26, 2002, is by and among Stericycle, Inc., a Delaware corporation ("Company"),
and the Persons whose names are set forth on the attached Schedule I
(collectively, the "Investors").

     RECITALS:

     WHEREAS, each of the Investors holds shares of the Company's Series A
Convertible Preferred Stock, par value $0.01 per share (the "Preferred Shares"),
acquired pursuant to that certain Amended and Restated Series A Convertible
Preferred Stock Purchase Agreement, dated September 26, 1999 (the "Purchase
Agreement");

     WHEREAS, the Company and the Investors are the parties currently bound by
that certain Registration Rights Agreement, dated as of November 12, 1999 (the
"1999 Registration Rights Agreement"), which was entered into at the closing of
the transactions contemplated by the Purchase Agreement;

     WHEREAS, the Company and the Investors are the parties currently bound by
that certain Corporate Governance Agreement, dated as of November 12, 1999 (the
"1999 Corporate Governance Agreement"), which was entered into at the closing of
the transactions contemplated by the Purchase Agreement;

     WHEREAS, the powers, designations, preferences and relative, participating,
optional and other rights, and qualifications, limitations and restrictions
applicable to the Preferred Shares are set forth in that certain Certificate of
Designation of the Company filed with the Office of the Secretary of State of
the State of Delaware on November 4, 1999 (the"1999 Certificate of
Designation");

     WHEREAS, the Purchase Agreement, the 1999 Registration Rights Agreement,
the 1999 Corporate Governance and the 1999 Certificate of Designation are
referred to herein collectively as "1999 Investment Documents";

     WHEREAS, the Company and the Investors find it mutually desirable, and are
willing, to amend the 1999 Investment Documents, subject to the terms and
conditions of this Agreement; and

     WHEREAS, terms used and not otherwise defined herein shall have the
respective meanings ascribed to such terms in the Purchase Agreement;

     NOW, THEREFORE, in consideration of the foregoing and the agreements,
promises and covenants set forth below, and for other good and valuable
consideration the receipt and

<PAGE>

sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     Section 1.  Waiver of Certain Prospective Dividends; Amendment to 1999
                 Certificate of Designation.

          (a)  Filing of First Amendment to Certificate of Designation.

          The Investors hereby consent to, and the Company agrees to cause
     (promptly after approval by the Company's stockholders in accordance with
     (S) 242 of the Delaware General Corporation Law), the filing of an
     amendment to the Company's Certificate of Designation in the form of
     Exhibit A attached hereto (the "First Amendment to Certificate of
     Designation") with the Office of the Secretary of State of the State of
     Delaware for the purpose of waiving any further right to accrual of
     dividends from and after June 1, 2002 on any outstanding Preferred Shares,
     except for the revival (if any) of such accrual of dividends as may occur
     in accordance with the terms and conditions of the First Amendment to
     Certificate of Designation (in the form attached hereto). The Investors
     acknowledge that the Company may not obtain stockholder approval of the
     First Amendment to Certificate of Designation until the Company's 2003
     annual meeting of stockholders. The Company and the Investors (for
     themselves and their Permitted Transferees, as defined in the Restated
     Corporate Governance Agreement) agree that pending stockholder approval and
     filing of the First Amendment to Certificate of Designation, the Company
     and the Investors shall proceed vis-a-vis one another as if the First
     Amendment to Certificate of Designation had been approved by the Company's
     stockholders and filed with the Office of the Secretary of State of
     Delaware. The Investors agree to vote in favor of the First Amendment to
     Certificate of Designation at any regular or special meeting of the
     Company's stockholders at which the First Amendment to Certificate of
     Designation is submitted for stockholder approval.

          (b)  Limited Waiver of Prospective Dividends.

          The Investors hereby waive any further right to accrual of dividends
     from and after June 1, 2002 on any outstanding Preferred Shares, except for
     the revival (if any) of such accrual of dividends as may occur in
     accordance with the terms and conditions of the First Amendment to
     Certificate of Designation (in the form attached hereto). The foregoing
     waiver is limited expressly to the accrual of dividends for the stated
     period from and after June 1, 2002 and shall not suspend, waive or affect
     any other provision of (or breach of or default under) the Company's
     Certificate of Incorporation or Certificate of Designation or any of the
     other 1999 Investment Documents, whether the same has occurred prior hereto
     or occurs subsequent hereto.

     Section 2.  Amendment of Other Agreements.

          (a)  Reaffirmation of Purchase Agreement.

          The Purchase Agreement is not amended or modified hereby and remains
     in full force and effect. Each party hereto hereby ratifies and reaffirms
     its obligations and duties under the Purchase Agreement to the fullest
     extent such obligations and duties remain surviving in accordance with the
     original terms of the Purchase Agreement.

          (b)  Amendment of 1999 Registration Rights Agreement.

          Each of the parties hereto shall, simultaneously with the consummation
     of the transactions contemplated hereby, enter into an agreement in the
     form of Exhibit B attached hereto (the "2002 Registration Rights
     Agreement") for the purpose of amending and restating the 1999 Registration
     Rights Agreement.

                                       -2-

<PAGE>

          (c)  Amendment of 1999 Corporate Governance Agreement.

          Each of the parties hereto shall, simultaneously with the consummation
     of the transactions contemplated hereby, enter into an agreement in the
     form of Exhibit C attached hereto (the "2002 Corporate Governance
     Agreement") for the purpose of amending and restating the 1999 Corporate
     Governance Agreement.

     Section 3.  Representations and Warranties.

     Each Investor (to induce the Company to enter into this Agreement) and the
Company (to induce each Investor to enter into the Agreement) represents and
warrants to the other that:

          (a)  No Breach or Default.

          Such Person has not breached and is not in default of any of its
     obligations or duties under any of the 1999 Investment Documents, as in
     effect immediately prior to the effectiveness of this Agreement; and

          (b)  Requisite Authority, etc

          (i) The execution, delivery and performance by such Person of this
     Agreement and of each of the other agreements and documents referred to
     herein is within its corporate, partnership or limited liability company
     powers, as applicable, and has been duly authorized by all necessary
     corporate, partnership or limited liability company action on its part, as
     applicable, (ii) this Agreement and each of the other agreements and
     documents referred to herein is the legal, valid and binding obligation of
     such Person enforceable against such Person in accordance with its terms
     and (iii) neither the execution, delivery or performance by such Person of
     this Agreement (1) violates any law or regulation, or any other or decree
     of any governmental body, (2) conflicts with or results in the breach or
     termination of, constitutes a default under or accelerates any performance
     required by, any indenture, mortgage, deed of trust, lease, agreement or
     other instrument to which such Person is a party or by which such Person or
     any of its property is bound, (3) violates or conflicts with the
     certificate of incorporation, partnership or limited liability company
     agreement, or other organizational documents of such Person, or (4)
     requires the consent, approval or authorization of, or declaration or
     filing with, any Person, except for those already duly obtained.

     Section 4   Conditions Precedent.

     The effectiveness of this Agreement is subject to the following conditions
precedent:

          (a)  Representations and Warranties.

          The representations and warranties of the Company contained herein
     shall be true and correct as of the date hereof.

                                       -3-

<PAGE>

          (b)  Execution and Delivery of Documents.

          The following agreements and documents shall have been duly
     authorized, executed and delivered by the Company:

               (i)   the 2002 Registration Rights Agreement;

               (ii)  the 2002 Corporate Governance Agreement; and

               (iii) a Certificate of the Secretary of the Company certifying as
          to the validity of the resolutions of the Company's board of directors
          authorizing the execution, delivery and performance by the Company of
          this Agreement and each of the other agreements and documents referred
          to herein.

     Section 5.   Effect on the Company's Certificate of Incorporation and
                  Certificate of Designation.

          (a)  Ratification and Reaffirmation.

          The Company's Certificate of Incorporation (as amended prior to the
     date hereof) and the Company's Certificate of Designation (except as
     specifically amended in accordance with Section 1 above) remain in full
     force and effect. The Company hereby ratifies and reaffirms its Certificate
     of Incorporation and Certificate of Designation (as the latter will be
     amended in accordance with the terms of this Agreement) and all of its
     obligations and duties thereunder.

          (b)  Limitation of Waiver.

          The execution, delivery and effectiveness of this Agreement shall not
     operate as a waiver of any right, power or remedy of the Investors under
     the Company's Certificate of Incorporation or Certificate of Designation or
     under the General Corporation Law of the State of Delaware, except to the
     limited extent set forth in Section 1 above. Notwithstanding anything
     contained herein, the terms of this Agreement are not intended to and do
     not effect an amendment or waiver of any provision of the Company's
     Certificate of Incorporation or Certificate of Designation with respect to
     any matter other than the accrual of dividends from and after June 1, 2002.
     For avoidance of doubt, the

                                       -4-

<PAGE>

     Company hereby acknowledges and agrees that no portion of the dividends
     that have accrued and/or accumulated on the outstanding Preferred Shares
     from and after their issuance and through and including May 31, 2002 are
     waived, affected or diminished by this Agreement (or any of the other
     agreements or documents referred to herein), and all such dividends shall
     remain so accrued and/or accumulated following the effectiveness hereof.

     Section 6    Miscellaneous.

          (a)  Successors and Assigns.

          This Agreement shall be binding on and shall inure to the benefit of
     Company, the Investors and their respective successors and assigns
     (including, without limitation, the Investors' Permitted Transferees (as
     defined in the Restated Corporate Governance Agreement)).

          (b)  Entire Agreement.

          This Agreement, together with the agreements and documents referred to
     herein, constitutes the entire agreement of the parties hereto with respect
     to the subject matter hereof and (except to the extent of the ratifications
     and reaffirmations of the 1999 Investment Documents set forth herein)
     supersedes all other understandings, oral or written, with respect to the
     subject matter hereof.

          (c)  Headings.

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

          (d)  Severability.

          Wherever possible, each provision of this Agreement shall be
     interpreted in such a manner as to be effective and valid under applicable
     law, but if any provision of this Agreement shall be prohibited by or
     invalid under applicable law, such provision shall be ineffective to the
     extent of such prohibition or invalidity, without invalidating the
     remainder of such provision or the remaining provisions of this Agreement.

          (e)  Counterparts.

          This Agreement may be executed in any number of separate original
     counterparts (or telecopied counterparts with original execution copy to
     follow) and by the different parties on separate counterparts, each of
     which shall be deemed to be an original, but all of such counterparts shall
     together constitute one agreement.

                                       -5-

<PAGE>

          (f) Expenses.

          Each party hereto shall pay its own fees and expenses in connection
     with the negotiation and preparation of this Agreement and the consummation
     of the transactions contemplated hereby, with the exception that the
     Company shall pay or reimburse the Investors for up to $15,000 of the
     Investors' reasonable attorneys' fees and expenses in connection this
     Agreement and the matters contemplated hereby.

                            (Signature page follows)

                                       -6-

<PAGE>

                Signature Page to Amendment and Waiver Agreement

   Delivered at Chicago, Illinois, as of the day and year first above written.

                             Company:

                               Stericycle, Inc.

                               By:  /s/ Mark C. Miller
                                  ---------------------------------------------
                                        President and Chief Executive Officer

                             MDP Entities:

                               Madison Dearborn Capital Partners III, L.P.

                               By:  Madison Dearborn Partners III, L.P.
                               Its: General partner

                               By:  Madison Dearborn Partners, LLC
                               Its: General Partner

                               By:  /s/ Thomas R. Reusche
                                  ----------------------------------------------
                                        A Managing Director

                               Madison Dearborn Special Equity III, L.P.

                               By:  Madison Dearborn Partners III, L.P.
                               Its: General partner

                               By:  Madison Dearborn Partners, LLC
                               Its: General Partner

                               By:  /s/ Thomas R. Reusche
                                  ---------------------------------------------
                                        A Managing Director

                               Madison Dearborn Capital Partners III, L.P.

                               By:  Madison Dearborn Partners III, L.P.
                               Its: General partner

                               By:  Madison Dearborn Partners, LLC
                               Its: General Partner

                               By:  /s/ Thomas R. Reusche
                                  ----------------------------------------------
                                        A Managing Director

                                       -7-

<PAGE>

                          Bain Entities:

                             Bain Capital Fund VI, L.P.

                             By:  Bain Capital Partners VI, L.P.
                             Its: General Partner

                             By:  Bain Capital Investors, LLC
                             Its: General Partner

                             By:  /s/ Paul Edgerly
                                ------------------------------------------------
                                      A Managing Director

                             BCIP Associates II

                             By:  Bain Capital Investors, LLC
                             Its: Managing General Partner

                             By:  /s/ Paul Edgerly
                                ------------------------------------------------
                                     Name:
                                     Title:

                             BCIP Associates II-B

                             By:  Bain Capital Investors, LLC
                             Its: Managing General Partner

                             By:  /s/ Paul Edgerly
                                ------------------------------------------------
                                     Name:
                                     Title:

                             BCIP Associates II-C

                             By:  Bain Capital Investors, LLC
                             Its: Managing General Partner

                             By:  /s/ Paul Edgerly
                                ------------------------------------------------
                                     Name:
                                     Title:

                                       -8-

<PAGE>

                              BCIP Trust Associates II

                              By:  Bain Capital Investors, LLC
                              Its: Managing General Partner

                              By:  /s/ Paul Edgerly
                                 ---------------------------------------------
                                      Name:
                                      Title:

                              BCIP Trust Associates II-B

                              By:  Bain Capital Investors, LLC
                              Its: Managing General Partner

                              By:  /s/ Paul Edgerly
                                 ---------------------------------------------
                                      Name:
                                      Title:

                              Pep Investments Pty. Limited

                              By:  Bain Capital Investors, LLC
                              Its: Attorney-in-Fact

                              By:
                                 ---------------------------------------------
                                      Name:
                                      Title:

                              Brookside Capital Partners Fund, L.P.

                              By:  /s/ Ed Brakeman
                                 ---------------------------------------------
                                      Name: Ed Brakeman
                                      Title: Managing Director

                              Sankaty High Yield Asset Partners, L.P.

                              By:  /s/ Kristin Mugford
                                 ---------------------------------------------
                                      Name: Kristin Mugford
                                      Title: Managing Director

                              Sankaty High Yield Partners II, L.P.

                              By:  /s/ Kristin Mugford
                                   ---------------------------------------------
                                      Name: Kristin Mugford
                                      Title: Managing Director

                                       -9-

<PAGE>

                                   Schedule I

                                    Investors

           MDP Entities

                    Madison Dearborn Capital Partners III, L.P.
                    Madison Dearborn Special Equity III, L.P.
                    Special Advisors Fund I, LLC

           Bain Entities

                    Bain Capital Fund VI, L.P.
                    BCIP Associates II
                    BCIP Associates II-B
                    BCIP Associates II-C
                    BCIP Trust Associates
                    BCIP Trust Associates II-B
                    PEP Investments Pty. Limited
                    Brookside Capital Partners Fund L.P.
                    Sankaty High Yield Asset Partners, L.P.
                    Sankaty High Yield Partners II, L.P.

                                       -10-

<PAGE>

                                                                       Exhibit A

                                Stericycle, Inc.

--------------------------------------------------------------------------------

                               First Amendment to
                     Certificate of Designation Relating to
         Series A Convertible Preferred Stock, Par Value $.01 Per Share

--------------------------------------------------------------------------------

         Pursuant to Section 242 of the General Corporation Law of the State of
Delaware, Stericycle, Inc., a Delaware corporation (the "Corporation"), hereby
certifies that:

                (a) pursuant to the authority contained in Article Four of the
         Corporation's Amended and Restated Certificate of Incorporation filed
         on August 19, 1996, as amended by a First Certificate of Amendment
         filed on November 4, 1999, a Certificate of Designation Relating to
         Series A Convertible Preferred Stock, Par Value $.01 Per Share, filed
         on November 4, 1999, and a Second Certificate of Amendment filed on May
         17, 2002 (the Corporation's Amended and Restated Certificate of
         Incorporation as so amended, the "Restated Certificate of
         Incorporation"), and

                (b) in accordance with the provisions of Section 242 of the
         General Corporation Law of the State of Delaware,

the following resolution was duly adopted by the Corporation's Board of
Directors:

         RESOLVED, that the Corporation's Certificate of Designation Relating to
Series A Convertible Preferred Stock, Par Value $.01 Per Share, filed on
November 4, 1999 (the "Series A Preferred Stock Certificate of Designation"), is
amended as follows:

         1.     Amendment of Section 1 ("Dividends")

         Section 1 ("Dividends") of the Series A Preferred Stock Certificate of
Designation is deleted in its entirety and the following is substituted in its
place:

<PAGE>

                1.    Dividends.

                      1A. Preferential Dividends.

                Subject to Section 1B, preferential dividends on each share of
         Series A Preferred Stock shall accrue daily (whether or not there are
         profits or surplus available therefor) at the rate of 3.375% per annum
         of the Liquidation Preference thereof from the date of issuance of such
         share until the earliest of (i) the date on which the Liquidation Value
         of such share of Series A Preferred Stock is paid to the holder thereof
         in connection with the liquidation of the Corporation or the
         Corporation's redemption of such share of Series A Preferred Stock,
         (ii) the date on which such share of Series A Preferred Stock is
         converted into shares of Common Stock or (iii) the date on which such
         share of Series A Preferred Stock is otherwise acquired by the
         Corporation. Accrued preferential dividends on each share of Series A
         Preferred Stock shall accumulate annually on the anniversary of the
         date of initial issuance of such share. When and as declared,
         preferential dividends shall be paid only by the issuance of additional
         shares of Series A Preferred Stock (including fractional shares
         thereof) having an aggregate Liquidation Value at the time of such
         payment equal to the amount of the dividend to be paid. If and when any
         shares of Series A Preferred Stock are issued under this Section 1A for
         the payment of accumulated dividends and accrued dividends which have
         not yet been accumulated, such shares of Series A Preferred Stock shall
         be deemed to be validly issued and outstanding and fully paid and
         nonassessable.

                1B.   Cessation of Accrual of Dividends.

                Preferential dividends payable under Section 1A on shares of
         Series A Preferred Stock shall be deemed to have ceased to accrue after
         May 31, 2002, and there shall be no accrual after May 31, 2002 of
         preferential dividends on shares of Series A Preferred Stock unless:

                      (a) the Corporation breaches or for any reason fails to
                perform or comply with any of its obligations in respect of the
                exercise of any rights of holders of Series A Preferred Stock
                under any one or more of the Transaction Documents, and

                      (b) the breach or failure continues for 10 days following
                the Corporation's receipt of written notice of its breach or
                failure from or on behalf of any one or more of the affected
                holders of Series A Preferred Stock.

         In this event, preferential dividends shall resume accruing daily on
         the shares of Series A Preferred Stock held by all affected holders, at
         the rate of 3.375% per annum of the Liquidation Preference of their
         shares, beginning on the 11th day after the Corporation's receipt of
         written notice of its breach or failure and continuing through the date
         on which the Corporation has fully performed or complied with its
         obligations under the Transaction Documents in respect of the exercise
         of the rights in question of the affected holders of Series A Preferred
         Stock.

                                       -2-

<PAGE>

                Nothing in this Section 1B shall operate as a forfeiture or
         reduction in any respect in any preferential dividends payable under
         Section 1A on shares of Series A Preferred Stock that accrued or
         accumulated prior to June 1, 2002, all of which shall remain so accrued
         or accumulated without modification.

                1C.   Participating Dividends.

                In addition to preferential dividends payable under Section 1A,
         holders of Series A Preferred Stock shall share pro rata with holders
         of Common Stock, on the basis of the number of shares of Common Stock
         which each holder of Preferred Stock would be entitled to receive upon
         conversion of the holders Preferred Stock into Common Stock as of the
         record date for the dividend or distribution, in all other dividends
         and distributions, if any, that the Corporation's board of directors
         may declare from time to time.

         2.     Amendment of Section 3 ("Voting Rights")

         Section 3 ("Voting Rights") of the Series A Preferred Stock Certificate
of Designation is deleted in its entirety and the following is substituted in
its place:

                3.    Voting Rights.

                3A.   Ordinary Voting.

                Except as otherwise required by law, the Corporation's Restated
         Certificate of Incorporation or this Certificate of Designation,
         holders of Series A Preferred Stock shall be entitled to vote with
         holders of Common Stock as a single class on each matter submitted to a
         vote of the Corporation's stockholders. Each share of Series A
         Preferred Stock shall have a number of votes equal to the number of
         votes possessed by the number of shares of Common Stock into which the
         share of Series A Preferred Stock is convertible as of the record date
         for determining the stockholders entitled to vote on the matter. Any
         fractional voting rights that result (after aggregating, in the case of
         each holder of Series A Preferred Stock, all shares of Common Stock
         into which all of the holder's shares of Series A Preferred Stock could
         be converted) shall be rounded upwards or downwards to the nearest
         whole number (with one-half being rounded upwards).

                3B.   Election of Directors.

                So long as the members of a Group hold at least 25% of the
         Underlying Common Stock (determined as of the date of the initial
         issuance of Series A Preferred Stock), holders of Series A Preferred
         Stock who are members of the Group, voting separately as a single
         class, to the exclusion of all other classes of the Corporation's
         capital stock and all other shares of Series A Preferred Stock held by
         members of the other Group, with each share of Series A Preferred Stock
         entitled to one vote, shall be entitled, in the election of directors
         of the Corporation, to elect one director to serve on the

                                       -3-

<PAGE>

         Corporation's board of directors. Each director so elected shall serve
         until his successor is duly elected by the Group's holders of Series A
         Preferred Stock or he is removed from office by the Group's holders of
         Series A Preferred Stock. If a Group's holders of Series A Preferred
         Stock for any reason fail to elect anyone to fill any such
         directorship, the position shall remain vacant until such time as the
         Group's holders of Series A Preferred Stock elect a director to fill
         the position, and it shall not be filled by resolution or vote of the
         Corporation's board of directors or its other stockholders. In the
         event that the members of a Group cease to hold at least 25% of the
         Underlying Common Stock (determined as of the date of the initial
         issuance of Series A Preferred Stock), the right and power provided to
         the Group's holders of Series A Preferred Stock by this Section 3B
         shall terminate.

         3.     Amendment of Section 4B ("Conversion Price")

         Section 4B ("Conversion Price") of the Series A Preferred Stock
Certificate of Designation is deleted in its entirety and the following is
substituted in its place:

                4B.   Conversion Price.

                The conversion price for Series A Preferred Stock (the
         "Conversion Price") was $17.50 initially and, in accordance with
         Section 4C, is now $8.75 by reason of the Corporation's 2-for-1 split
         of its Common Stock in the form a stock dividend of one share payable
         on May 31, 2002 on each share of Common Stock outstanding on May 16,
         2002. In order to prevent dilution of the conversion rights granted
         under Section 4A, the Conversion Price for Series A Preferred Stock
         shall be subject to adjustment from time to time pursuant to Sections
         4C, 4D, 4E and 4F.

         3.     Amendment of Section 13 ("Definitions")

         Section 13 ("Definitions") of the Series A Preferred Stock Certificate
of Designation is amended to add the following definitions:

                      Corporate Governance Agreement means the Amended and
                Restated Corporate Governance Agreement, dated July 26, 2002,
                entered into by the Corporation and the holders of Series A
                Preferred Stock, as it may be amended.

                Group means either:

                      (a) the group consisting of (i) the initial purchasers of
                Series A Preferred Stock associated with Bain Capital Partners,
                Inc. (now known as "Bain Capital Partners, LLC") and (ii) their
                Permitted Transferees; or

                      (b) the group consisting of (i) the initial purchasers of
                Series A Preferred Stock associated with Madison Dearborn
                Partners, Inc. (now known as "Madison Dearborn Partners, LLC")
                and (ii) their Permitted Transferees.

                                       -4-

<PAGE>

                Permitted Transferees is defined in the Corporate Governance
                Agreement.

                Transaction Documents means the following:

                      (a) this Certificate of Designation, as it has been and
                may be amended in accordance with Section 11:

                      (b) the Corporate Governance Agreement;

                      (c) the Amended and Restated Registration Rights
                Agreement, dated July 26, 2002, entered into by the Corporation
                and the holders of Series A Preferred Stock, as it may be
                amended;

                      (d) the Amended and Restated Preferred Stock Purchase
                Agreement, dated as of September 26, 1999, entered into by the
                Company and the initial purchasers of Series A Preferred Stock,
                as it may be amended; and

                      (e) the Amendment and Waiver Agreement, dated July 26,
                2002, entered into by the Corporation and the holders of Series
                A Preferred Stock, as it may be amended.

                                       -5-

<PAGE>

     In witness, the Corporation has caused this First Certificate of
Designation to be signed by its President and Chief Executive Officer, Mark C.
Miller, on [date]. His signature below constitutes his affirmation and
acknowledgement, under penalties of perjury, that this instrument is the
Corporation's act and deed and that the facts stated in this instrument are
true.

                                 Stericycle, Inc.

                                 By
                                     -------------------------------------------
                                           Mark C. Miller
                                           President and Chief Executive Officer

                                       -6-<PAGE>

                                                                    Exhibit 10.3

                              Amended and Restated
                         Corporate Governance Agreement

     This Agreement is entered into as of July 26, 2002 by Stericycle, Inc., a
Delaware corporation (the "Company"), and the Persons whose names are set forth
on the attached Schedule I (collectively, the "Investors").

     A. The Company and the Investors are the parties currently bound by that
certain Registration Rights Agreement, dated as of November 12, 1999 (the "1999
Registration Rights Agreement"), which was entered into at the closing of that
certain concurrently closing an Amended and Restated Preferred Stock Purchase
Agreement (the "Purchase Agreement"), pursuant to the terms and conditions of
which the Company issued and sold to the purchasers and the purchasers purchased
from the Company, 75,000 shares of the Company's Series A Convertible Preferred
Stock (the "Preferred Shares").

     B. The Company and the Investors desire to amend and restate the 1999
Corporate Governance Agreement as set out in this Agreement.

     C. This Agreement is entered into pursuant to the Amendment and Waiver
Agreement, dated as of the same date as this Agreement (the "Waiver Agreement"),
entered into by the Company and the Investors. The execution and delivery of
this Agreement by the Company and the Investors is a condition of the Waiver
Agreement becoming effective.

     The Company and the Investors agree that the 1999 Corporate Governance
Agreement is amended and restated as follows, effective as of June 1, 2002:

     1. Definitions.

     Capitalized terms which are used in this Agreement without being defined
have the same meanings that they are given in the Purchase Agreement. In
addition, the following terms have these meanings:

     Board of Directors or Board means the Company's board of directors.

     Converted Shares means the shares of Common Stock actually received by an
Investor or a Permitted Transferee upon conversion of some or all of the Current
Preferred Shares.

     Current Preferred Shares means the shares of Preferred Stock listed under
the caption "Preferred Shares" on the attached Schedule I.

     Group means either:

<PAGE>

          (a)  the group (the "Bain Group") consisting of

               (1) the Investors listed under the caption "Bain Entities" on the
          attached Schedule I (for as long as each such Investor continues to be
          the beneficial owner of Shares), and

               (2) the Permitted Transferees of such Investors (for as long as
          each such Permissible Transferee continues to be the beneficial owner
          of Shares); or

          (b)  the group (the "MDP Group") consisting of

               (1) the Investors listed under the caption "MDP Entities" on the
          attached Schedule I (for as long as each such Investor continues to be
          the beneficial owner of Shares), and

               (2) the Permitted Transferees of such Investors (for as long as
          each such Permissible Transferee continues to be the beneficial owner
          of Shares).

     Initial Interest means, in respect of a Group, the aggregate number of
shares of Common Stock into which the Group's Preferred Shares were convertible
as of Closing of the Purchase Agreement on November 12, 1999, as adjusted for
the 2-for-1 stock split in the Company's Common Stock in the form of a dividend
of one share payable on May 31, 2002. As so adjusted, the Initial Interest of
each Group was 4,285,715 shares of Common Stock (rounding the resulting
fractional upwards to a whole share).

     Investor Nominee means any person nominated by a Group's Permitted Owners
to serve as a director of the Company pursuant to this Agreement.

     Permitted Owner means, in respect of a Group, (i) an Investor who is a
member of the Group, for as long as the Investor continues to be the beneficial
owner of Shares, and (ii) each Permitted Transferee of an Investor who is a
member of the Group, for as long as the Permitted Transferee continues to be the
beneficial owner of Shares.

     Permitted Transferee means:

          (a) any Affiliate (including any partner) of any Investor to whom an
     Investor or another Affiliate of the Investor or any other Investor who is
     a member of the same Group Transfers Current Preferred Shares or Converted
     Shares;

          (b) any other Person to whom an Investor or an Affiliate of the
     Investor or any other Investor who is a member of the same Group Transfers
     Current Preferred Shares or Converted Shares with the prior written consent
     of the Board of Directors; and

          (c) any Person to whom a transferee described in clause (b) Transfers
     Current Preferred Shares or Converted Shares with the prior written consent
     of the Board of

                                       -2-

<PAGE>

     Directors.

     In no event shall any Person who acquires Converted Shares pursuant to a
Rule 144 Sale or an offering registered under the Securities Act be considered a
Permitted Transferee. No Transfer otherwise permissible shall be effective
unless the transferee agrees in writing expressly for the Company's benefit to
be bound by the provisions of this Agreement, and in this event, the transferor
shall not be liable for the transferee's performance of its obligations under
this Agreement.

     Rule 144 Sale means a transaction exempt from registration pursuant to Rule
144 under the Securities Act.

     Shares means, at any time, the aggregate number of (i) Converted Shares
then held by the Investors and Permitted Transferees and (ii) Converted Shares
that the Investors and Permitted Transferees then have the right to receive upon
a conversion of all Current Preferred Shares then held by them.

     Transfer means to sell, assign, transfer (voluntarily or involuntarily),
exchange (by merger or otherwise) or otherwise dispose of or to grant a lien,
encumbrance, pledge or other form of security interest.

     2.  Corporate Governance.

     2A. Appointment of Investor Nominees.

     Each Group currently has an Investor Nominee serving on the Board of
Directors: John P. Connaughton serves as the Investor Nominee of the Bain Group,
and Thomas R. Reusche serves as the Investor Nominee of the MDP Group. An
Investor Nominee serves and shall continue to serve on each committee of the
Board.

     2B. Maintenance of Directorships.

     (a) For as long as Shares representing at least 25% in the aggregate of a
Group's Initial Interest are beneficially owned by the Group's Permitted Owners,
the Group's Permitted Owners shall continue to have the right to nominate one
person for election to the Company's Board of Directors. The Company shall
nominate the person so designated and shall use reasonable efforts to have the
nominee elected to its Board of Directors. (The Company's obligations under this
Section 2B(a) shall be deemed satisfied if a person designated by the Group is
elected to the Board by holders of Preferred Shares pursuant to the Certificate
of Designation.)

     (b) If at any time Shares representing at least 25% in the aggregate of a
Group's Initial Interest cease to be beneficially owned by the Group's Permitted
Owners, the Group's Permitted Owners shall cease to be entitled to nominate one
person for election to the Company's Board of Directors, and the Group's
Investor Nominee currently serving as a director shall immediately resign upon
the Company's written request.

                                       -3-

<PAGE>

     2C. Removal and Replacement.

     (a) If at any time a Group's Permitted Owners notify the Board of Directors
of their wish to remove the Group's incumbent Investor Nominee as a director,
the Board shall vote to remove the Investor Nominee (if his or her removal is
permitted under the Company's bylaws and the Delaware General Corporation Law).
Removal of a Group's incumbent Investor Nominee by the Board otherwise than at
the request of the Group's Permitted Owners shall require their prior written
consent unless the removal is based upon the Investor Nominee's willful
misconduct.

     (b) If at any time a vacancy is created on Board of Directors by reason of
the incapacity, death, removal or resignation of a Group's incumbent Investor
Nominee, the Group's Permitted Owners shall designate a person to fill the
vacancy (who promptly shall be appointed by the incumbent directors). If a
Group's Permitted Owners nominate an Investor Nominee for election to the Board
of Directors and the Company's stockholders fail to elect him or her to office,
the Group's Permitted Owners shall be entitled to designate a substitute
Investor Nominee to fill the resulting vacancy (who promptly shall be appointed
by the incumbent directors).

     (c) At each meeting of stockholders of the Company at which directors are
elected, the nominees for directors proposed by the Company shall include the
Investor Nominee or Nominees required pursuant to this Agreement.

     2D. Investor Nominee.

     Each incumbent Investor Nominee shall receive notice of each meeting of the
Board of Directors at the same time and in the same manner as other members of
the Board. Each incumbent Investor Nominee shall be entitled to indemnification
rights, travel and expense reimbursement and compensation substantially similar
to those of other non-employee directors of the Company. The Company shall at
all times maintain a directors and officer insurance policy covering each
incumbent Investor Nominee that provides in the aggregate substantially the same
coverage as the policy covering the current directors of the Company as of the
date of this Agreement.

     2E. Actions by Permitted Owners.

     Any action by a Group's Permitted Owners under this Section 2 shall be by
majority vote of the Permitted Owners, with each Preferred Share having a number
of votes equal to the number of Converted Shares into which it may then be
converted, and each Converted Share having one vote.

     3.  Certain Actions of the Company.

     3A. Actions.

     Subject to Section 3B, the Company shall not do any of the following
(whether in one or

                                       -4-

<PAGE>

a series of related actions or transactions) without the approval of holders of
a majority of the Shares then beneficially owned by Permitted Owners:

     (1) declare or pay any dividend or other payment to holders of Common Stock
or any other securities junior in right of payment to the Preferred Shares;

     (2) increase the size of the Company's Board (other than pursuant to
Section 2A);

     (3) merge or consolidate with, or permit any Subsidiary to merge or
consolidate with, any Person (other than a merger or consolidation between the
Company and a wholly-owned Subsidiary or between one wholly-owned Subsidiary and
another), or acquire, or permit any Subsidiary to acquire, any interest in any
Person or business (whether by purchase of assets, purchase of stock, merger or
otherwise), involving an aggregate consideration (including assumed liabilities)
exceeding $20,000,000 in any one transaction or series of related transactions
or exceeding $50,000,000 in any 12-month period;

     (4) divest or dispose of, or permit any Subsidiary to divest or dispose of,
any business or other assets (other than obsolete or worn-out assets), whether
by sale of assets, sale of stock, merger or otherwise, involving an aggregate
consideration exceeding $20,000,000 in any one transaction or series of related
transactions or exceeding $50,000,000 in any 12-month period;

     (5) become subject to or permit any Subsidiary to become subject to, or
amend, any Contract which by its terms would restrict the Company's right to
perform the provisions of this Agreement, the Registration Agreement, the
Certificate of Designation, the Company's certificate of incorporation and the
Company's bylaws that benefit the Investors;

     (6) enter into or amend, or permit any Subsidiary to enter into or amend,
any Contract, transaction or arrangement with any of its or any Subsidiary's
officers, directors, employees, stockholders or Affiliates, except for (i)
customary employment and director arrangements consistent with past practice,
(ii) benefit programs on reasonable terms consistent with past practice, (iii)
transactions or arrangements between the Company and any wholly-owned Subsidiary
or between one wholly-owned Subsidiary and another (treating 3CI Complete
Compliance Corporation as a wholly-owned Subsidiary for purposes of this clause
(iii)), and (iv) transactions with an Affiliate that arise solely as a result of
owning an equity interest in the Affiliate; or

     (7) directly or indirectly, create, incur, issue, assume, guarantee or
otherwise become directly or indirectly liable, contingently or otherwise, with
respect to (collectively, incur), or permit any Subsidiary to incur, any
Indebtedness (including Acquired Debt), and the Company shall not issue any
Disqualified Stock and will not permit any Subsidiary to issue any shares of
preferred stock; provided, however, that the Company may incur Indebtedness
(including Acquired Debt) or issue Disqualified Stock, and the Company's
Subsidiaries may incur Indebtedness or issue preferred stock, if the Fixed
Charge Coverage Ratio for the Companies most recently ended four full fiscal
quarters for which internal financial statements are available immediately
preceding the date on which such additional Indebtedness is incurred or such

                                       -5-

<PAGE>

Disqualified Stock or preferred stock is issued would have been at least 2.0 to
1.0, determined on a pro forma basis (including a pro forma application of the
net proceeds therefrom), as if the additional Indebtedness had been incurred or
the preferred stock or Disqualified Stock had been issued, as the case may be,
at the beginning of such four-quarter period.

     Capitalized terms used in Section 3A(7) which are not defined elsewhere in
this Agreement have the same meanings that the same or corresponding terms are
given in the Trust Indenture dated as of November 12, 1999 entered into by the
Company in connection with its offering of the Subordinated Notes (the "Trust
Indenture"). The restriction in Section 3A(7) shall not prohibit the incurrence
of any Permitted Debt (as Permitted Debt is defined in connection with the
corresponding covenant by the Company under the Trust Indenture).

     3B. Termination.

     The restriction in Section 3A(1) shall terminate when both Groups'
Permitted Owners, considered together, cease beneficially to own in the
aggregate Preferred Shares representing at least 25% of both Groups' Initial
Interests in the aggregate. The restriction in Section 3A(2) shall terminate
when both Groups' Permitted Owners cease to be entitled under both this
Agreement and the Certificate of Designation to nominate any person for election
to the Company's Board of Directors. The restrictions in each of Sections 3A(3),
(4), (5), (6) and (7) shall terminate when both Groups' Permitted Owners,
considered together, cease beneficially to own in the aggregate Shares
representing at least 20% of both Groups' Initial Interests in the aggregate.

     4.  Restrictions on Transfer.

     4A. Restrictions on Transfer.

     Prior to November 12, 2004, except for Transfers to a Permitted Transferee,
no Permitted Owner shall Transfer any Preferred Shares. This restriction shall
not apply to (i) the Transfer of any Preferred Shares which a Permitted Owner
has a right to have redeemed pursuant to Section 5A of the Certificate of
Designation but which for any reason the Company has failed to redeem within 30
days after the Permitted Owner's exercise of his or its redemption right (ii) or
to the Transfer of any securities other than Preferred Shares. The right of a
Permitted Owner under the preceding sentence shall be in addition to any other
rights and remedies available to the Permitted Owner at law or in equity.

     5.  Miscellaneous.

     5A. Notices.

     All Notices under this Agreement shall be in writing and sent by certified
or registered mail, overnight messenger service, telecopier or personal
delivery, as follows:

                                       -6-

<PAGE>

               (a) if to Stericycle, to:

                                         Stericycle, Inc.
                                         28161 North Keith Drive
                                         Lake Forest, Illinois 60045
                                         Attention:   Mr. Mark C. Miller
                                                      President and Chief
                                                      Executive Officer
                                         Telecopier:  (847) 367-9493

               with a required copy to:

                                         Johnson and Colmar
                                         300 South Wacker Drive
                                         Suite 1000
                                         Chicago, Illinois 60606
                                         Attention:   Craig P. Colmar, Esq.
                                         Telecopier:  (312) 922-9283

               (b) if to an Investor who is a member of the Bain Group, in care
                   of:

                                         Bain Capital Investors, LLC
                                         111 Huntington Avenue
                                         Boston, Massachusetts 02199
                                         Boston, Massachusetts 02116
                                         Attention:   Mr. Stephen G. Pagliuca
                                                      Mr. Robert Gay
                                                      Mr. John P. Connaughton
                                                      Mr. Joe Pretlow
                                         Telecopier:  (617) 516-2010

               (c) if to an Investor who is a member of the MDP Group, in care
                   of:

                                         Madison Dearborn Partners, LLC
                                         Three First National Plaza
                                         Suite 3800
                                         Chicago, Illinois 60602
                                         Attention:   Mr. Thomas R. Reusche
                                         Telecopier:  (312) 895-1156

               with a required copy, in the case of a Notice to any Investor,
               to:

                                         Kirkland & Ellis
                                         200 East Randolph Drive
                                         Chicago, Illinois 60601
                                         Attention:   Jeffrey C. Hammes, P.C.

                                       -7-

<PAGE>

                           Telecopier: (312) 861-2200

     All Notices sent by certified or registered mail shall be considered to
have been given three business days after being deposited in the mail. All
Notices sent by overnight courier service, telecopier or personal delivery shall
be considered to have been given when actually received by the intended
recipient. A Party may change its address for purposes of this Agreement by
Notice in accordance with this Section 5A.

     5B. Waiver.

     The rights and remedies of the Parties are cumulative and not alternative.
Neither the failure nor any delay by any Party in exercising any right, power or
privilege under this Agreement or the documents referred to in this Agreement
shall operate as a waiver of that right, power or privilege, and no single or
partial exercise of any right, power or privilege shall preclude any other or
further exercise of that right, power or privilege or the exercise of any other
right, power or privilege. All waivers shall be in writing signed by the Party
to be charged with the waiver, and no waiver that may be given by a Party shall
be applicable except in the specific instance for which it is given.

     5C. Entire Agreement.

     This Agreement supersedes all prior agreements between the Parties with
respect to its subject matter and constitutes a complete and exclusive statement
of the terms of the agreement between the Parties with respect to its subject
matter. This Agreement may not be amended except by a written agreement signed
by the Party to be charged with the amendment.

     5D. No Third Party Beneficiaries.

     Nothing in this Agreement shall be considered to give any Person other than
the Parties (and Permitted Transferees) any legal or equitable right, claim or
remedy under or in respect of this Agreement or any provision of this Agreement.
This Agreement and all of its provisions are for the sole and exclusive benefit
of the Parties and their respective successors and permitted assigns.

     5E. Equitable Relief.

     In addition to any other remedies which may be available, the Company and
each Permitted Owner shall be entitled to equitable relief, including injunctive
relief and specific performance, in the event of any breach of the provisions of
this Agreement, the Purchase Agreement, the Registration Rights Agreement, as
amended and restated, or the Certificate of Designation, as amended and
restated, by another Party, and neither the Company nor any Permitted Owner nor
the Investor Nominee or Nominees shall oppose the granting of such relief.

                                       -8-

<PAGE>

     5F. Severability.

     If any provision of this Agreement is held invalid or unenforceable by a
court of competent jurisdiction, the other provisions of this Agreement shall
remain in full force and effect. Any provision of this Agreement which is held
invalid or unenforceable only in part shall remain in full force and effect to
the extent not held invalid or unenforceable.

     5G. Captions.

     The captions of sections of this Agreement are for convenience only and
shall not affect this the construction or interpretation of this Agreement.

     5H. Construction.

     All references in this Agreement to Section or Sections refer to the
corresponding section or sections of this Agreement. All words used in this
Agreement shall be construed to be of the appropriate gender or number as the
context requires. Unless otherwise expressly provided, the word including does
not limit the preceding words or terms.

     5I. Counterparts.

     This Agreement may be executed in one or more counterparts, each of which
shall be considered an original copy of this Agreement and all of which, when
taken together, shall be considered to constitute one and the same agreement.

     5J. Governing Law.

     This Agreement shall be governed by the Laws of the State of Illinois
without regard to conflicts of laws principles.

     5K. Binding Effect.

     This Agreement shall apply to, be binding in all respects upon and inure to
the benefit of Parties and their respective successors and permitted assigns.

                                       -9-

<PAGE>

     In witness, the Parties have executed this Agreement.

Company:

                     Stericycle, Inc.

                     By:  /s/ Mark C. Miller
                         ------------------------------------------------------
                              President and Chief Executive Officer

                   MDP Entities:

                     Madison Dearborn Capital Partners III, L.P.

                     By:  Madison Dearborn Partners III, L.P.
                     Its: General partner

                     By:  Madison Dearborn Partners, LLC
                     Its: General Partner

                     By:  /s/ Thomas R. Reusche
                         ------------------------------------------------------
                              A Managing Director

                     Madison Dearborn Special Equity III, L.P.

                     By:  Madison Dearborn Partners III, L.P.
                     Its: General partner

                     By:  Madison Dearborn Partners, LLC
                     Its: General Partner

                     By:  /s/ Thomas R. Reusche
                         ------------------------------------------------------
                              A Managing Director

                     Madison Dearborn Capital Partners III, L.P.

                     By:  Madison Dearborn Partners III, L.P.
                     Its: General partner

                     By:  Madison Dearborn Partners, LLC
                     Its: General Partner

                     By:  /s/ Thomas R. Reusche
                         ------------------------------------------------------
                              A Managing Director

                                       -10-

<PAGE>

                   Bain Entities:

                     Bain Capital Fund VI, L.P.

                     By:  Bain Capital Partners VI, L.P.
                     Its: General Partner

                     By:  Bain Capital Investors, LLC
                     Its: General Partner

                     By:  /s/ Paul Edgerly
                       ------------------------------------------------------
                              A Managing Director

                     BCIP Associates II

                     By:  Bain Capital Investors, LLC
                     Its: Managing General Partner

                     By:  /s/ Paul Edgerly
                        ------------------------------------------------------
                             Name:
                             Title:

                     BCIP Associates II-B

                     By:  Bain Capital Investors, LLC
                     Its: Managing General Partner

                     By:  /s/ Paul Edgerly
                        ------------------------------------------------------
                             Name:
                             Title:

                     BCIP Associates II-C

                     By:  Bain Capital Investors, LLC
                     Its: Managing General Partner

                     By:  /s/ Paul Edgerly
                        ------------------------------------------------------
                             Name:
                             Title:

                                      -11-

<PAGE>

                     BCIP Trust Associates II

                     By:  Bain Capital Investors, LLC
                     Its: Managing General Partner

                     By:  /s/ Paul Edgerly
                        ------------------------------------------------------
                             Name:
                             Title:

                     BCIP Trust Associates II-B

                     By:  Bain Capital Investors, LLC
                     Its: Managing General Partner

                     By:  /s/ Paul Edgerly
                        ------------------------------------------------------
                             Name:
                             Title:

                     Pep Investments Pty. Limited

                     By:  Bain Capital Investors, LLC
                     Its: Attorney-in-Fact

                     By:
                        ------------------------------------------------------
                             Name:
                             Title:

                     Brookside Capital Partners Fund, L.P.

                     By:  /s/ Ed Brakeman
                        ------------------------------------------------------
                             Name: Ed Brakeman
                             Title: Managing Director

                     Sankaty High Yield Asset Partners, L.P.

                     By:  /s/ Kristin Mugford
                        ------------------------------------------------------
                             Name: Kristin Mugford
                             Title: Managing Director

                     Sankaty High Yield Partners II, L.P.

                     By:  /s/ Kristin Mugford
                        ------------------------------------------------------
                             Name: Kristin Mugford
                             Title: Managing Director

                                      -12-

<PAGE>

                                   Schedule I

                                Preferred Shares

                                                                    Preferred
                                                                     Shares

MDP Entities

   Madison Dearborn Capital Partners III, L.P. ................      22,267.55
   Madison Dearborn Special Equity III, L.P. ..................         494.44
   Special Advisors Fund I, LLC ...............................          91.42
                                                                   -----------
     Total ....................................................      22,853.41

Bain Entities

   Bain Capital Fund VI, L.P. .................................      15,437.45
   BCIP Associates II .........................................       2,732.19
   BCIP Associates II-B .......................................         374.57
   BCIP Associates II-C .......................................         802.00
   BCIP Trust Associates ......................................         781.81
   BCIP Trust Associates II-B .................................         124.77
   PEP Investments Pty. Limited ...............................          51.45
   Brookside Capital Partners Fund L.P. .......................       1,123.92
   Sankaty High Yield Asset Partners, L.P. ....................         561.96
   Sankaty High Yield Partners II, L.P. .......................         561.96
                                                                   -----------
     Total ....................................................      22,552.07

Grand Total ...................................................      45,405.47
                                                                   ===========

                                      -13-

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