Bill Wilson's Royalty Agreement with AAWS, Inc.
AGREEMENT made this 29th day of April, 1963, by and between WILLIAM G. WILSON, residing at Steppingstones, Bedford Hills, New York (herein called "WILSON") and ALCOHOLICS ANONYMOUS WORLD SERVICES, INC., a membership corporation organized and existing under and by virtue of the laws of the State of New York and having its principal place of business at 305 East 45th St., New York, N.Y. (herein called "A.A.");
W I T N E S S E T H :
WHEREAS, A.A.'s predecessor has heretofore assigned to A.A. all of its assets and properties subject to its liabilities; and
WHEREAS, WILSON has theretofore prepared for publication the books entitled "Alcoholics Anonymous", "Twelve Steps and Twelve Traditions", and "A.A. Comes of Age" all of which have heretofore been published by A.A.'s predecessor (which books are herein collectively referred to as "previously published works"); and
WHEREAS, each of the previously published works has been copyrighted in the name of A.A.'s predecessor as the copy-right owner thereof, which copyrights are now the property of A.A.; and
WHEREAS, A.A.'s predecessor has heretofore agreed by various written and oral agreements to pay to WILSON certain royalties computed on the sales of the previously pub-lished works (which agreements are herein collectively re-ferred to as the "previous agreements"); and
WHEREAS, the previous agreements are now the property of A.A.; and
WHEREAS, the parties hereto desire to consolidate herein the terms of the previous agreements as amended and to provide for the rights of A.A. with respect to any books or other material of which WILSON may hereafter be the author,
1. As of the date hereof, this agreement shall supersede the previous agreements.
2. WILSON hereby confirms and agrees that all right, title and interest in and to the previously published works belonged to A.A.'s predecessor and now belongs to A.A. by reason of the assignment thereof by A.A.'s predecessor to A.A. including but not limited to any copyrights thereof, as well as the right to apply for a renewal of the same. In this connection, WILSON agrees that he, his personal repre-sentatives or assigns will, if necessary, or if required by A.A., apply for a renewal of any of the copyrights on the previously published works upon the expiration of the first term thereof and that he, his personal representatives or assigns will assign to A.A. the sole and exclusive right to publish the previously published works during the full term of any renewal of the copyright thereof if such assignment is requested by A.A.
3. A.A. and WILSON agree respectively to use all reasonable diligence in applying for copyrights and renewal of copyrights on covered works to the extent permitted by the copyright laws of the United States and to execute in con-nection therewith any and all documents required for the same. The obligations herein contained shall be binding not only on WILSON but upon the personal representatives and assignees of WILSON.
4. The terms of this agreement shall be deemed to commence
on the date hereof and shall continue as long as A.A. is obligated to pay
royalties pursuant to the terms
5. During the term hereof, WILSON shall not pub-lish or furnish to any other publisher any written material coming within the definition of future works unless and until he shall have offered in writing such material to A.A. which shall have an irrevocable option to be exercised within one hundred twenty (120) days thereafter to acquire the sole and exclusive world-wide publication rights therein. Said option shall be exercised within such one hundred twenty day period by A.A. giving notice to WILSON of its election to exercise such option. In the event that A.A. exercises such option:
b) A.A. shall pay to WILSON the royalty pay ments hereinafter provided.
c) WILSON agrees that he, his personal representatives or assigns will, if necessary or required by A.A., apply for renewals of the copyright thereon upon
the expiration of the first term thereof and that such renewals of copyright will be assigned to A.A. during the full term thereof.
d) A.A. shall publish such written material coming within the definition of future works within one year after its exercise of its option at a retail price to be mutually agreed upon by A.A. and WILSON.
6. While a covered work is included within the terms of this agreement, A.A. shall pay to WILSON a royalty of fifteen (15%) per cent of the retail price for each copy thereof sold and paid for. No royalties shall be paid on copies furnished gratis by A.A. nor on foriegn language edi-tions of a covered work. The obligation of A.A. to pay royal-ties to WILSON with respect to any covered work included within the terms of this agreement shall expire upon the happening of any one of the following events whichever shall first occur:
b) Upon WILSON's death, all royalties provided for herein shall lapse either wholly or to the extent that such royalties are not validly disposed of by the Last Will and Testament of WILSON (herein referred to as "WILSON'S Will") as hereinafter provided in sub-paragraph "6 c)" infra, or validly assigned under Section "13" infra.
c) WILSON shall have the right in WILSON'S Will to bequeath to his wife LOIS WILSON (herein referred to as "WILSON'S wife") and any other person or persons selected by him who are then living at the time of his death (herein referred to as "approved beneficiaries") a life interest in all or any part of the royalties payable to him hereunder. Upon the death of any approved bene-ficiary other than WILSON'S wife, the life interest in the royalties payable to such approved beneficiary shall lapse and revert to A.A. With respect to any life interest in the royalties payable hereunder bequeathed to WILSON'S wife, WILSON shall have the right to provide in WILSON'S Will that such life interest shall, upon the death of WILSON'S wife, be divided among any persons selected by WILSON who are living at the time of his death in such proportions as he may designate. WILSON shall also have the right in WILSON'S will to grant to WILSON'S wife the right to designate in her Last Will and Testament duly admitted to probate (herein referred to as "WILSON'S wife's Will") persons selected by her who are then living at the time of her death who shall be entitled to receive a life interest after her death in all or part of the royalties payable to her during her life as provided in WILSON'S Will, and any such beneficiary designated by WILSON'S wife's will shall be deemed an approved beneficiary designated in WILSON'S will with the same force and effect as if specially listed therein. On the death of any approved
8. In the event that during the term of this agreement either the retail selling price of any previously pub-lished works is hereafter reduced by A.A., or the retail sell-ing price of any future work included within the terms of this agreement is reduced by A.A. subsequent to the date of pub-lication thereof, and as a result thereof, WILSON'S aggregate amount of royalties payable hereunder during the full calen-dar year next succeeding such reduction (herein referred to as the "succeeding year") fall below the average annual amount of royalties paid WILSON by A.A. during the five calendar years immediately preceding the year in which such reduction occurs (herein referred to as the "8" base yearly royalty"), A.A. shall be required thereafter and until such reduction or reductions are restored to elect either to:
b) Increase the dollar amount of the royalty payable for each copy of a covered work as provided for
It is agreed that the provisions of this Section "8" are only applicable to a covered work during the period that A.A. is obligated to pay royalties as provided hereunder with respect to such covered work.
ii) Increase the royalty payable to WILSON so that the aggregate yearly amount thereof shall have the same purchasing power as the average yearly amount of royalties paid to WILSON during the Section "9" base period.
ii) Decrease the royalty payable to WILSON so that the aggregate yearly amount thereof shall have the same purchasing power as the average yearly amount of royalties paid to WILSON during the Section "9" base period.
11. WILSON will at all times execute, acknowledge and deliver or will cause to be acknowledged, executed or delivered to A.A. all such further documents, assurances and papers as A.A. may reasonably require for carrying into ef-fect the intended purpose of this agreement.
12. This agreement contains the entire understand-ing of the parties and cannot be varied or discharged except by an instrument in writing signed by both of the parties and shall be governed by the laws of the State of New York.
13. This contract shall bind the ex-
IN WITNESS WHEREOF, the parties hereto have caused this agreement
to be executed as of the date and year first above written.
signed WILLIAM G. WILSON
ALCOHOLICS ANONYMOUS WORLD