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AGREEMENT FOR SUBLEASE Exhibit 10.6
THIS SUBLEASE (the "Sublease") is made as of this 30th day of July, 1997 by
and between WMI Medical Services of Arizona, Inc., an Arizona corporation
("Lessor"), and Stericycle, Inc., a Delaware corporation ("Lessee"), WITNESSETH:
ARTICLE 1
PREMISES AND TERM
Lessor, for and in consideration of the rents herein reserved and the
covenants and agreements herein contained on the part of the Lessee to be kept
observed and performed, has demised and leased, and does by these presents
demise and lease to the Lessee a certain parcel (or parcels) of real estate
located at the address contained in and the legal description described on
Exhibit A attached hereto and made a part hereof.
TO HAVE AND TO HOLD the above described real estate, together with the
buildings and improvements situated thereon and the rights, privileges and
appurtenances thereunto belonging or appertaining (the "Premises"), unto the
Lessee for and during the term of three (3) years, commencing on the 1st day of
September, 1997 and ending on the 31st day of August, 2000, unless said term
shall be sooner terminated as herein provided.
Lessor hereby also leases to Lessee the equipment, furniture, fixtures and
other tangible personal property located on the Premises, which personal
property is listed on the attached Exhibit B (the "Personal Property").
The Lessee may terminate this Sublease, effective as of the last day of any
calendar month, upon six months' prior written notice to the Lessor given at any
time during the term of this Sublease.
ARTICLE 2
RENT
SECTION 2.1 In consideration of the leasing aforesaid, Lessee hereby
covenants and agrees to pay Lessor, in care of Waste Management of Phoenix,
0000 Xxxxx 00xx Xxxxxx, Xxxxxxx, Xxxxxxx 00000 (Attention: Vice
President-Controller), or at such other place as the Lessor may from time to
time designate in writing, aggregate rental [Omitted; filed separately with
the Securities and Exchange Commission] per annum for the term of this Sublease
(sometimes herein referred to as the "rent") payable monthly in installments of
[Omitted; filed separately with the Securities and Exchange Commission] each
on the first day of each and every month of the term hereof beginning September
1, 1997. However, if the term of this Sublease shall commence on a date other
than the first day of a calendar month or end on a day other than the last day
of a calendar month, the first and last month's rent shall be prorated based
upon the ratio that the number of days in the term within such month bears to
the total number of days in such month.
SECTION 2.2 Lessee agrees to pay in addition to the rent herein reserved,
all sums which may become due by reason of the failure of Lessee to comply with
all the covenants of this Sublease and any and all damages, costs, expenses and
impositions which Lessor may suffer or incur by reason of any default of the
Lessee or failure on its part to comply with all the covenants of this Sublease,
and each of them.
SECTION 2.3 Upon the signing of this Sublease, Lessee shall pay to
Lessor the first month's rent and as a security deposit the sum of [Omitted;
filed separately with the Securities and Exchange Commission] which shall
secure the various covenants of Lessee under this Sublease, including payment
of rent. Lessor shall keep such security deposit and shall return the same to
Xxx-
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see within thirty (30) days of the termination of Lessee's tenancy hereunder,
without interest. In the event that Lessee shall breach any provision of this
Sublease which may be cured through the payment of money, or the hiring of
services, Lessor shall be entitled to so cure, using the Lessee's security
deposit, and upon written notice to Lessee, Lessee shall within twenty-one (21)
days replenish the security deposit to the sum set forth above.
ARTICLE 3
NET LEASE
SECTION 3.1 It is the purpose and intent of Lessor and Lessee that the
rental provided in Article 2 during the term of this Sublease shall be net to
Lessor, except for the items noted in Sections 4.2 and 4.4 of this Sublease, and
that, except for such items, all costs, expenses, real estate taxes and
obligations of every kind and nature whatsoever relating to the Premises which
may arise during the term of this Sublease shall be paid by Lessee, and Lessor
shall be indemnified and saved harmless by Lessee against the same.
SECTION 3.2 Lessee shall pay all charges for natural gas, water,
electricity and telephone services used on the Premises during the term of this
Sublease.
ARTICLE 4
USE, MAINTENANCE, REPAIRS AND ACCESS
SECTION 4.1 Lessee and all persons claiming by, through or under Lessee may
use and occupy the Premises for the treatment of medical waste and office
purposes solely in compliance with all federal, state and local laws and
regulations.
SECTION 4.2 Throughout the term of this Sublease, Lessee shall, at its cost
and expense properly, maintain and repair all structures and improvements,
including heating, plumbing, ventilating and air conditioning systems, and all
fixtures, equipment and furnishings; provided however, that Lessor shall be
obligated to make promptly and at its own expense all structural repairs which
are required on the Premises to the extent that the aggregate cost of such
repairs exceed $25,000 in any calendar year; and provided further, however, that
neither Lessor nor Lessee shall repair or replace any capital structures or
improvements without first having obtained the prior written consent of the
other party. Lessee may, in its discretion and at its expense, make any
alterations and changes it deems necessary to the Premises for the purpose of
best serving its business.
SECTION 4.3 Lessor and Lessee agree that any and all fixed improvements
made to the Premises by Lessee shall become the sole property of Lessor upon
termination of this Sublease as long as said improvements do not detract from
the fair market value of the Premises, in which case, Lessee agrees to remove
all of said improvements and return the Premises to Lessor in the same condition
in which the Premises were received on the commencement date of this Sublease,
normal wear and tear excepted. In any case, Lessee shall be allowed to remove
all personal property owned by Lessee from the Premises.
SECTION 4.4 Lessee shall not be responsible for any costs of Lessor under
Lessor's covenants of quiet enjoyment and peaceable possession or Lessor's taxes
due on Lessor's income, gross receipts or other similar items that are not
reasonably considered to be in the nature of real estate taxes.
SECTION 4.5 Lessee may, in its discretion, make any alterations and changes
it deems necessary to the Premises for the purpose of best serving its business.
If Lessee shall alter or change the Premises during the term of this Sublease,
Lessee shall make such alterations in compliance with the Americans with
Disabilities Act of 1990 ("ADA") and all statutes, ordinances, laws, orders,
rules, regulations and requirements of all applicable federal state, county and
other agencies or authorities now in effect with respect to the use, occupation
or alteration of the Premises ("Laws") and, upon request of Lessor, shall
deliver evi-
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dence thereof reasonably satisfactory to Lessor. Lessor hereby represents that
the Premises are currently in compliance with the ADA and all other Laws and
agrees to indemnify Lessee for any damages or expenses (including attorneys'
fees) incurred by Lessee as a result of Lessor's breach of the foregoing
representation.
SECTION 4.6 During the term of this Sublease, Lessee shall keep, afford and
allow access to Lessor to the Premises at all reasonable times. Except in an
emergency, Lessor shall give at least twenty four (24) hours' advance notice,
written or oral of its intent to gain access to the Premises.
SECTION 4.7 Lessee shall vacate and deliver up the Premises upon the
expiration of the term of this Sublease, or any renewal thereof or sooner
termination of the term of this Sublease, in the same condition that the
Premises were in as of the date hereof, reasonable wear and tear excepted.
ARTICLE 5
INDEMNIFICATION
SECTION 5.1 Lessee agrees to defend, indemnify and save Lessor harmless
from and against any and all liability, loss, damage, and Environmental Damages,
as defined herein, and expense (including reasonable attorneys' fees) and from
and against any and all suits, claims and demands of every kind and nature made
by or on behalf of any and all persons, firms or corporations, provided that any
of the foregoing (i) are due to Lessee's negligence, willful misconduct or
breach hereof, (ii) arise out of or are based upon any accident, injury or
damage, however occurring, which happens in, or about the Premises or entrances
thereto during the term of this Sublease, (iii) arise out of or are based upon
Lessee's use, occupation or operation of the Premises or facilities during the
term hereof or (iv) with respect to Environmental Damages, arise out of any
Hazardous Substance located on the Premises during the term of this Sublease or
any event or condition which occurs or exists on the Premises during the term of
this Sublease. Nothing in this Section shall relieve Lessor from, or obligate
Lessee to indemnify Lessor for, liability resulting from Lessors's own
negligence, wilful misconduct or breach of its obligations under this Sublease.
Lessee's indemnification obligations under this Section 5.2 shall extend to Lone
Buttee Industrial Development Corporation and the Gila River Indian Community
and their respective successors and assigns.
SECTION 5.2 Lessor agrees to defend, indemnify and save Lessee harmless
from and against any and all liability, loss, damage, and Environmental Damages,
as defined herein, and expense (including reasonable attorneys' fees) and from
and against any and all suits, claims and demands of every kind and nature made
by or on behalf of any and all persons, firms or corporations, provided that any
of the foregoing (i) are due to Lessor's negligence, wilful misconduct or breach
hereof, (ii) arise out of or are based upon any accident, injury or damage,
however occurring, which happened in or about the Premises or entrances thereto
at any time prior to the term of this Sublease or (iii) with respect to
Environmental Damages, arise out of any Hazardous Substance located on or
adjacent to the Premises prior to the term of this Sublease or any event or
condition which occurred or existed prior to the term of this Sublease. Nothing
in this Section shall relieve Lessee from, or obligate Lessor to indemnify
Lessee for, liability resulting from Lessee's own negligence, wilful misconduct
or breach of its obligations under this Sublease.
SECTION 5.3 Lessor agrees to give Lessee prompt written notice of any
claims or demands against the Lessor arising out of or based upon any of the
liabilities, losses or expenses against which Lessee is bound to defend,
indemnify and save harmless the Lessor. Lessee shall have full control over any
such claim or litigation, and Lessor shall reasonably cooperate with Lessee in
such efforts. Lessee agrees to give Lessor prompt written notice of any claims
or demands against the Lessee arising out of or based upon any of the
liabilities, losses or expenses against which Lessor is bound to defend,
indemnify and save harmless the Lessee. Lessor shall have full control over any
such claim or litigation, and Lessee shall reasonably cooperate with Lessor in
such efforts.
SECTION 5.4 Lessee shall indemnify and save harmless Lessor from and
against all mechanic's liens and notices thereof and all claims thereof on
account of any materials furnished or labor performed in, about or
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in connection with the Premises or the sidewalks and curbs adjacent thereto
except those arising from work undertaken by Lessor. Should any such lien be
filed, Lessee shall promptly bond or otherwise discharge the same.
ARTICLE 6
ENVIRONMENTAL REPRESENTATIONS
SECTION 6.1 As used herein, "Hazardous Substance" means any substance that
is toxic, ignitable, reactive, corrosive or radioactive and that is regulated by
any local government, the state in which the Premises are located or the United
States government. "Hazardous Substance" includes any and all materials or
substances that are now or hereafter defined as "hazardous waste," "extremely
hazardous waste," "toxic substance," or a "hazardous substance" pursuant to
state, federal or local governmental law, including, without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C.
xx.xx. 9601 et seq.) and/or the Resource Conservation and Recovery Act (42
U.S.C. xx.xx. 6901 et seq.). "Hazardous Substance" includes but is not
restricted to friable asbestos, polychlorinated biphenyls ("PCB's"), and
petroleum products.
"Environmental Damages" means all claims, judgments, damages, losses,
penalties, fines, liabilities (including strict liability), encumbrances, liens,
costs and expenses of whatever kind or nature, contingent or otherwise matured
or otherwise matured, foreseeable or unforeseeable, including, without
limitation, reasonable attorneys' and consultants' fees, incurred at any time as
a result of the existence of Hazardous Substance upon, about, or beneath the
Premises or migrating or threatening to migrate to or from the Premises, or the
existence of a violation of any governmental requirement pertaining to the
environment, health or safety arising from the Premises, or the existence of a
violation of any governmental requirement pertaining to the environment, health
or safety arising from or relating to the Property.
The representations and warranties contained in this Article shall survive
the expiration or termination of this Sublease and any transfer of title to the
Premises (whether by sale or otherwise) and shall not be affected by any
investigation by or on behalf of Lessee or by any information which Lessee may
have or obtain with respect thereto.
SECTION 6.2 Except in compliance with all governmental requirements
pertaining to health, safety and the environment, Lessee shall not knowingly
cause or permit any Hazardous Substance to be used, stored, generated, or
disposed of on in or about the Premises by Lessee, Lessee's agents, employees,
contractors, or invitees. If Lessee causes any contamination of the Premises by
a release of such Hazardous Substances for which Lessee is legally liable, in
addition to its obligations contained in Section 5. 1, Lessee shall, upon
request of Lessor, at Lessee's sole expense, take any and all necessary actions
to return the Premises to the condition existing prior to the release of any
such Hazardous Substances on the Premises, including, but not limited to, any
and all clean-up and remedial actions.
ARTICLE 7
CASUALTY
In case of damage to or destruction of all or part of the Premises or all
or part of the fixtures or improvements thereon by fire or other casualty,
Lessee shall promptly at its own expense repair, restore or rebuild the same to
no less than the condition existing immediately prior to the occurrence of such
fire or other casualty and promptly clear away the remaining debris to return
the Premises to a safe condition.
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ARTICLE 8
INSURANCE
SECTION 8.1 Lessee covenants and agrees that it will at all times, at its
sole cost and expense, keep the building or buildings and improvements on the
Premises occupied by Lessee insured under a fire insurance policy with extended
coverage endorsements for not less than its full or their full insurance value
above foundations, and will keep all such insurance in full force and effect
during the entire term of this Sublease. Lessee shall cause Lessor to be named
as an additional insured under such fire insurance policy.
It is covenanted and agreed between the parties hereto that in the event of
loss under any such policy or policies, Lessee shall proceed with the repair and
restoration of the damaged or destroyed improvements occupied by Lessee in
accordance with Article 7 hereof and that the insurance proceeds shall be paid
to and held by Lessee to be paid out for the expense of repairing or rebuilding
the buildings or improvements occupied by Lessee which have been damaged or
destroyed.
SECTION 8.2 Lessor and Lessee release each other and waive any right of
recovery against each other for loss or damage to their respective property
which occurs in or about the Premises (whether due to negligence of either
party, their agents, employees, officers, contractors, licensees, invitees or
otherwise) to the extent that such loss or damage is reimbursed by insurance
proceeds. Lessor and Lessee agree that all policies of insurance obtained by
either of them in connection with the Premises shall contain appropriate waiver
of subrogation clauses.
SECTION 8.3 Lessee covenants and agrees that it will at all times during
the term hereof carry and maintain, for the mutual benefit of Lessor and Lessee,
general public liability insurance against claims for personal injury, death or
property damage, occurring in, on or about the Premises, such insurance to
afford protection to the limit of not less than One Million Dollars ($1,000,000)
per occurrence, for bodily injury and property damage.
Lessee's general public liability insurance shall also be for the benefit
of Lone Butte Industrial Development Corporation and the Gila River Indian
Community, which shall be named as additional insureds. Lessee shall provide
Lone Butte Industrial Development Corporation with a certificate of insurance to
this latter effect and, if requested, a copy of the underlying insurance policy.
ARTICLE 9
CONDEMNATION
SECTION 9.1 If the use, occupancy or title of the entire Premises shall be
taken, requisitioned or sold in, by or on account of any actual or threatened
eminent domain proceeding or other action by any person having the power of
eminent domain (the "Condemnation"), then and in that event the term of this
Sublease shall terminate upon Condemnation, and any award, compensation or
damages shall be divided between Lessor and Lessee in accordance with their
respective interests in and to the Premises.
SECTION 9.2 In the event that a portion (but less than all) of the Premises
or any interest therein, including but not limited to the right of free access
to the Premises, shall be so taken, requisitioned or sold as to render the
remaining portion of the Premises, in the sole opinion of Lessee, unsuitable for
Lessee's use, then the Lessee may, at its option, terminate this Sublease and
the term hereof upon Condemnation, and any award shall be divided between Lessor
and Lessee in the same manner and upon the same conditions as set forth in
Section 9.1. Such option shall be exercised by Lessee by written notice to
Lessor not less than thirty (30) days prior to the date on which possession of
such portion of the Premises shall be taken. If Lessee shall not so elect to
terminate this Sublease and the term hereof then, upon the payment of any award
arising from such Condemnation, the amount received shall be paid to and held by
Lessor and used in defraying the cost and expense of making repairs to and
alterations of the improvements on the Premises
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for the purpose of restoring the same to an economic architectural unit to the
extent that may have been made necessary by such Condemnation, and the balance,
if any, remaining shall be paid to Lessor.
SECTION 9.3 In case the taking of part of the Premises by Condemnation
renders the Premises untenantable in whole or in part, rent shall xxxxx until
the Premises are again fully tenantable. If as a result of any such taking, the
area of the Premises is permanently reduced, basic rent hereunder shall be
reduced in proportion to the reduction in area of the Premises.
ARTICLE 10
SUBORDINATION
This Sublease and Lessee's leasehold estate and all rights of Lessee
hereunder shall be subject and subordinate at all times in all respects to the
lien of any and all mortgages which Lessor may make upon any right, title or
interest of Lessor in the Premises, and to any and all extensions and renewals
and any and all new mortgages made in lieu of or in replacement of any such
mortgage, provided that any such mortgage shall provide that so long as Lessee
shall not be in default in the performance and observance of the terms,
covenants, conditions and limitations in this Sublease contained on the part of
the Lessee to be performed and observed, no foreclosure of the lien of said
mortgage for default thereof shall impair the right of Lessee to enjoy this
Sublease pursuant to its terms. In the event of acquisition of Lessor's interest
in this Sublease by any such mortgagee or anyone claiming through or under such
mortgagee, Lessee will recognize as its lessor such mortgagee or the person
claiming through or under such mortgagee who shall so acquire title to the
Lessor's interest in this Sublease.
ARTICLE 11
ASSIGNMENT AND SUBLETTING
Lessee shall not assign this Sublease or sublease all or any portions of
the Premises without first obtaining Lessor's prior written consent, which
consent shall not be unreasonably withheld.
ARTICLE 12
FIXTURES
SECTION 12.1 Subject to the provisions contained in Section 4.3, all
buildings and improvements on the Premises and all plumbing, heating, fighting,
electrical and air conditioning fixtures and equipment and other articles of
personal property used in the operation of such buildings as such (as
distinguished from operations incident to the business of Lessee) attached to
the Premises (sometimes herein referred to as "Building Fixtures"), shall be and
remain a part of the Premises and shall constitute the property of Lessor.
SECTION 12.2 Lessee may at any time and from time to time at its expense
install its trade fixtures on the Premises. All of Lessee's trade fixtures and
all personal property, fixtures, apparatus, machinery and equipment now or
hereafter located upon the Premises (other than Building Fixtures) and owned by
the Lessee or any other occupants of the Premises, and whether or not the same
are affixed thereto, shall be and remain the personal property of Lessee or such
other occupants and the same are herein sometimes referred to as "Lessee's
Equipment." Lessee's Equipment may be removed from time to time by Lessee or
other occupants of the Premises. Any damage caused by such removal shall be
repaired by Lessee at Lessee's expense.
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ARTICLE 13
NOTICES OR DEMANDS
All notices to or demands upon Lessor or Lessee desired or required to be
given under any of the provisions hereof shall be deemed to have been duly and
sufficiently given if a copy thereof shall have been hand-delivered or mailed by
United States first class mail in an envelope properly stamped and addressed to
Lessee at 0000 Xxxx Xxxx Xxxx, Xxxxx 000, Xxxxxxxxx, Xxxxxxxx 00000, or at such
other address as Lessee may theretofore have furnished by written notice to
Lessor; and any notices or demands from Lessee to Lessor shall be deemed to have
been duly and sufficiently given if a copy thereof shall have been
hand-delivered or mailed by United States first class mail in an envelope
properly stamped and addressed to the Lessor c/o Waste Management, Inc. at 0000
Xxxxxxxxxxx Xxxx, Xxx Xxxxx, Xxxxxxxx 00000, Attention: General Counsel or at
such other address as Lessor may have furnished by written notice to Lessee.
ARTICLE 14
DEFAULT AND REMEDIES UPON DEFAULT
SECTION 14.1 If Lessee shall default in the payment of the rent or any part
thereof when due as herein provided, and such default shall continue for ten
(10) days after notice thereof in writing to Lessee, or if default shall be made
in any of the other covenants, agreements, conditions or undertakings herein
contained to be kept, observed and performed by Lessee, and such default shall
continue for thirty (30) days after notice thereof in writing to Lessee, or if
Lessee shall abandon the Premises, then and in any such event it shall be lawful
for Lessor, at its election to declare the term ended and to take appropriate
legal action to re-enter and regain possession of the Premises. If default shall
be made in any covenant, agreement, condition or undertaking herein contained to
be kept, observed and performed by Lessee, other than the payment of rent as
herein provided, which cannot with due diligence be cured within a period of
thirty (30) days, and if notice thereof in writing shall have been given to
Lessee, and if Lessee prior to the expiration of thirty (30) days from and after
the giving of such notice commences to eliminate the cause of such default and
proceeds diligently and with reasonable dispatch to take all steps and do all
work required to cure such default and does so cure such default, then Lessor
shall not have the right to declare the said term ended by reason of such
default; provided, however, that the curing of any default in such manner shall
not be construed to limit or reduce the right of Lessor to declare said term
ended and enforce all of its rights and remedies hereunder for any default not
so cured.
SECTION 14.2 If a default occurs and is not cured within the time permitted
herein, Lessor shall have the rights and remedies hereinafter set forth, which
shall be distinct, separate and cumulative with and in addition to any other
right or remedy allowed under any law or other provisions of this Sublease:
(a) Lessor may terminate this Sublease, repossess the Premises by detainer
suit or other lawful means, and recover as damages a sum of money equal to (a)
any unpaid rent as of the termination date including interest accruing from the
due date thereof at the rate of twelve percent (12%) per annum, (b) any unpaid
rent which would have accrued after the termination date through the time of
award including interest accruing from the due date thereof at the rate of
twelve percent (12%) per annum, (c) any unpaid rent which would have accrued
after the time of award during the balance of the term discounted to the present
value of such amount, and (d) any other amounts necessary to compensate Lessor
for all detriment or damages proximately caused by Lessee's failure to perform
its obligations under this Sublease including, without limitation, Lessor's
costs of reletting. If applicable law shall require that the amount of unpaid
rent recoverable hereunder be modified to reflect the "worth at the time of
award," computed by allowing or discounting interest at specified rates, or the
"reasonable value" of the rent claimed, or shall require any other specific
modification of the foregoing provisions, such law shall govern and control.
(b) Lessor shall at all times have the rights and remedies (which shall be
cumulative with any other rights of Lessor hereunder or under any law): (i) to
seek any declaratory, injunctive or other equitable re-
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lief and specifically enforce this Sublease or restrain or enjoin a violation or
breach of any provision hereof and (ii) to xxx for and collect any unpaid rent.
Such rights may be exercised at any time and from time to time. Notwithstanding
anything to the contrary contained in this Sublease, to the extent not expressly
prohibited by applicable law, in the event of any default by Lessee not cured
within any applicable time for cure hereunder, Lessor may terminate this
Sublease and accelerate and declare that all rent reserved for the remainder of
the term shall be immediately due and payable; provided, Lessor shall, after
receiving payment of the same from Lessee, be obligated to turn over to Lessee
any actual net reletting proceeds thereafter received during the remainder of
the term, up to the amount so received from Lessee pursuant to this provision.
(c) No re-entry or repossession, repairs, changes, alterations and
additional reletting, acceptance of keys from Lessee, or any other action or
omission by Lessor shall be construed as an election by Lessor to terminate this
Sublease or accept a surrender of the Premises, nor shall the same operate to
release the Lessee in whole or in part from any of the Lessee's obligations
hereunder, unless express written notice of such intention is sent by Lessor or
its agent to Lessee. The times set forth herein for the curing of defaults by
Lessee are of the essence of this Sublease. Lessee hereby irrevocably waives any
right otherwise available under any law to redeem or reinstate this Sublease.
ARTICLE 15
SURRENDER OF POSSESSION
If Lessee shall hold over beyond the expiration of the term herein provided
or any renewal or extension thereof, Lessor may at its election either proceed
to evict Lessee by legal proceedings or treat such holdover tenancy only as a
month-to- month tenancy for 200% of the monthly rental herein specified. If so
elected by Lessor, such holdover tenancy may be terminated by either party
hereto upon thirty days' prior written notice.
ARTICLE 16
PERMITS
Lessee has obtained the necessary regulatory approvals and permits to
operate an incinerator or autoclave at the Premises for the treatment of medical
waste. Upon the termination of this Sublease for any purpose, other than
pursuant to the exercise of Lessee's option pursuant to Article 16 above, the
parties agree to cooperate in good faith with each other so that all of Lessee's
regulatory approvals and permits and approvals are transferred to Lessor.
Lessee hereby agrees to provide Lessor with access to the Premises and to
all records relevant to Lessee's compliance with its regulatory approvals and
permits that Lessee maintains in respect of its operation of an incinerator or
autoclave at the Premises for the treatment of medical waste. Lessee also agrees
to provide copies of any and all correspondence from or to regulatory
authorities regarding Lessee's operations at the Premises and to notify Lessor
as far in advance as possible of any inspections.
Lessee agrees to operate at the Premises in full compliance with all
applicable laws, regulations and the conditions set forth in Lessee's regulatory
approvals and permitst, copies of which have been previously delivered to
Lessor. Lessee agrees to defend, indemnify and hold Lessor and its affiliates
harmless from and against all indemnifiable damages of Lessor. For this purpose,
"indemnifiable damages" of Lessor means the aggregate of all expenses, losses,
costs, deficiencies, liabilities and damages (including attorneys' fees and
court costs) incurred or suffered by Lessor, or any of its directors, agents,
employees or affiliates or its affiliates directors, agents or employees, as a
result of or in connection with Lessee's operations at the Premises.
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ARTICLE 17
BROKER'S COMMISSION
Lessor and Lessee warrant, each to the other, that there are no brokers
involved in this lease transaction. If any other person shall assert a claim to
a fee, commission or other compensation on account of alleged employment as a
broker or finder or for performance of services as a broker or finder in
connection with this Sublease, the party hereto under whom the broker or finder
is claiming shall indemnify and hold harmless the other party against and from
any such claim and all costs, expenses and liabilities incurred in connection
with such claim or any action or proceeding brought thereon.
ARTICLE 18
SUBLEASE PROVISIONS
SECTION 18.1 This Sublease is subject and subordinate to the provisions of
Lease No. B-GR-61 dated November 28, 1968, as amended, between Lone Butte
Industrial Development Corporation ("Lone Butte") and Gila River Indian
Community ("GRIC"), as amended (the "Master Lease") and Lease No. B-GR-61-E-1
dated June 10, 1970, between Lone Butte and the Fillmore Partnership, as amended
(the "Fillmore Sublease"). In the event of any conflict between the provisions
of the Master Lease or the Fillmore Sublease and the provisions of this
Sublease, the provisions of the Master Lease or the Fillmore Sublease, as the
case may be, shall be controlling.
SECTION 18.2 This Sublease is a sublease of Lessor's tenacy in the Premises
under the Sublease Agreement to Lease No. B-GR-61-E, dated November 23, 1988,
between the Fillmore Partnership, as landlord, and Southwest S.T.A.T., an
Arizona corporation, as tenant, as extended in accordance with Resolution EDSC
GR-07-92 of the Economic Development Standing Committee of the Gila River Indian
Community Council (as extended, the "WMI Lease"). In accordance with Section
XIII.E of the WMI Lease, Lessee agrees to perform faithfully and to assume and
be bound by all the terms, covenants, conditions, provisions and provisions of
the WMI Lease during the term of this Sublease.
SECTION 18.3 Lessor will use reasonable efforts to procure the written
consent of the landlord under the Lessor Lease to the sublease of the Premises
under this Sublease substantially in the form attached hereto as Exhibit C.
ARTICLE 19
PERSONAL PROPERTY
Lessor represents and warrants to Lessee that Lessor holds title to the
Personal Property free and clear of all liens, claims and encumbrances,
including any claims by the landlord under the WMI Lease.
ARTICLE 20
MISCELLANEOUS
SECTION 20.1 During the term of this Sublease, Lessee shall pay to Lone
Butte a road maintenance fee of $25.00 per month, plus $1.00 per month for each
employee at the Premises, which shall be paid monthly in advance.
SECTION 20.2 Lessee understands that Lone Butte will provide security
patrol services to inspect the exterior of the improvements on the Premises
periodically throughout each 24-hour period. Lessee shall pay Lone Butte $225
per month for these security services, which shall be paid monthly in advance.
Lessee acknowledges that neither Lone Butte nor GRIC shall be responsible for,
and Lessee hereby waives, any
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claims arising out of any alleged failure by Lone Butte to provide adequate
security patrol services, except for claims against Lone Butee arising out of
its willful misconduct. Lessee understands that Lone Butte may, upon 30 days'
written notice to Lessee, discontinue the security patrol services described in
this Section 21.2. In this event, Lessee shall be relieved of any obligation to
make any further payments under this Section 21.2 (but shall not be relieved of
its obligation to make any delinquent payments).
SECTION 20.3 The captions of this Sublease are for convenience only and are
not to be construed as part of this Sublease and shall not be construed as
defining or limiting in any way the scope or intent of the provisions hereof.
SECTION 20.4 If any term or provision of this Sublease shall to any extent
be held invalid or unenforceable, the remaining terms and provisions of this
Sublease shall not be affected thereby, but each term and provision of this
Sublease shall be valid and be enforced to the fullest extent permitted by law.
SECTION 20.5 This Sublease shall be construed and enforced in accordance
with the laws of the state in which the Premises are located.
SECTION 20.6 Lessor and Lessee agree that this Sublease is not in
consideration for or dependent or contingent in any manner upon any other
contract, lease or agreement between them and that the term, rental and other
provisions of this Sublease are not intended by said parties to be tied in with
any other such contract, lease or agreement; but on the contrary, this Sublease
and all of its provisions are entirely and completely independent of any other
transactions or relationship between the parties.
SECTION 20.7 The failure of Lessor to enforce any term, covenant,
condition, or agreement hereof by reason of its breach by Lessee after notice
hereunder shall not be deemed to avoid or affect the right of Lessor to enforce
the same term, covenant, condition or agreement on the occasion of the
subsequent default or reach.
IN WITNESS WHEREOF, Lessor and Lessee have caused these presents to be
executed as of the day and year first herein above written.
Lessor:
WMI MEDICAL SERVICES OF ARIZONA, INC.
an Arizona corporation
By: /s/ Xxxxxx X. Xxxxxxxxx
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Name: Xxxxxx X. Xxxxxxxxx
Title: Assistant Secretary
Lessee:
STERICYCLE, INC.
a Delaware corporation
By: /s/ Xxxxx X. Xxx
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Name: Xxxxx X. Xxx
Title: Vice President
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EXHIBIT A
LEGAL DESCRIPTION AND ADDRESS
[Omitted]
Commonly known as: 0000 Xxxxx Xxxxxx Xxxxx, Xxxxxxxx Xxxxxxx
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EXHIBIT B
PERSONAL PROPERTY
[Omitted]
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EXHIBIT C
LANDLORD'S CONSENT
[Omitted]
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