Exhibit 10.1

INTELLECTUAL PROPERTY SECURITY AGREEMENT

This Intellectual Property Security Agreement ("Agreement"), dated as of April
3, 2015, is made and entered into by and between Axiom Corp, a Colorado
corporation, (“Grantor”)  and Delta Paper, Inc., a Pennsylvania corporation
("Secured Party"). 

WHEREAS, Grantor, through its wholly-owned subsidiary, PaperNuts Corporation,,
an Ontario corporation, and Secured Party entered into  a certain letter
agreement dated June 6, 2014 (the “Underlying Agreement”) in which Secured Party
sold Grantor a certain Patent for a product known as “PaperNuts,” (See Schedule
“A”)  the registered trademark “PaperNuts™” (See Schedule “B”) and the website
with the domain name “PaperNuts (See Schedule “C”) (collectively, the
“Intellectual Property”). 

WHEREAS, as a condition to such sale, and under the terms of the Underlying
Agreement, Grantor has granted Secured Party a lien on the Intellectual Property
as security for Grantor’s payment obligations whereby, pursuant to the
Underlying Agreement, Grantor will pay 2% royalty on all sales of PaperNuts
products until the total royalty payment reaches $100,000 (US$), at which time
this Agreement shall terminate, and all obligations from Grantor to Security
Holder shall be satisfied.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, hereby agree as follows:

1.                  Grant of Security Interest. Grantor hereby pledges and
grants to Secured Party a lien upon and a security interest in and to all of the
right, title and interest of Grantor in, to and under the following, wherever
located, and whether now existing or hereafter arising or acquired from time to
time (the "IP Collateral"): :    

(a)                the PaperNuts patent set forth in Schedule “A” hereto and all
reissues, divisions, continuations, continuations-in-part, renewals, extensions
and reexaminations thereof and amendments thereto (the "Patents") 

(b)               the trademark registration for PaperNuts™ set forth in
Schedule “B” hereto, together with the goodwill connected with the use of and
symbolized thereby and all extensions and renewals thereof (the "Trademarks"); 

(c)                the PpaperNuts™ website set forth in Schedule “C” hereto (the
“Website”) 

 

 

 

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(d)               all rights of any kind whatsoever of Grantor accruing under
any of the foregoing provided by applicable law of any jurisdiction, by
international treaties and conventions and otherwise throughout the world,
including without limitation all domain names;

(e)                any and all royalties, fees, income, payments and other
proceeds now or hereafter due or payable with respect to any and all of the
foregoing; and

(f)                any and all claims and causes of action, with respect to any
of the foregoing, whether occurring before, on or after the date hereof,
including all rights to and claims for damages, restitution and injunctive and
other legal and equitable relief for past, present and future infringement,
dilution, misappropriation, violation, misuse, breach or default, with the right
but no obligation to sue for such legal and equitable relief and to collect, or
otherwise recover, any such damages.

2.                  Termination. Upon payment and performance in full of all
obligations under the Underlying Agreement, the security interests created by
this Agreement shall terminate and Secured Party shall promptly execute and
deliver to Grantor such documents and instruments reasonably requested by
Grantor as shall be necessary to evidence termination of all such security
interests given by Grantor to Secured Party hereunder, including cancellation of
this Agreement by written notice from Secured Party.

3.                  UCC and PPSA. This Security Agreement is intended to
constitute a security interest under the Uniform Commercial Code in effect in
the State of New Jersey, United States and under the Personal Property Security
Act in effect in Ontario Province, Canada.

4.                  Recordation. Grantor authorizes the Commissioner for Patents
and Trademarks, the Registrar in Ontario, Canada the Secretary of State in the
State of Colorado and any other government officials to record and register this
Security Agreement, or any appropriate form, upon request by the Secured Party.

5.                  Execution in Counterparts. This Security Agreement may be
executed in counterparts, each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. Delivery of an
executed counterpart of a signature page to this Security Agreement by facsimile
or in electronic (i.e., "pdf" or "tif" format) shall be effective as delivery of
a manually executed counterpart of this Security Agreement.

6.                  Successors and Assigns. This Security Agreement will be
binding on and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

 

 

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7.                  Amendment; Conflict. This Agreement is subject to
modification only by a writing signed by the parties, except as provided herein.
To the extent that any provision of this Agreement conflicts with any provision
of the Underlying Agreement, the provision under this Agreement shall control.

8.                  Notices.  Any notice required or permitted to be given under
this Agreement shall be in writing and sent by United States mail, registered or
certified mail, postage prepaid, return receipt requested, or reputable
overnight courier or electronic mail, with conformation of delivery, and shall
be deemed to have been given upon the date of delivery (or refusal to accept
delivery) as indicated on the return receipt, or, in the case of overnight
courier, on the guaranteed date of delivery, or in the case of electronic mail,
on the date of delivery if delivered during normal business hours (Mon-Fri,
9:00am-5:00pm local time  of the recipient), or the next business day mail if
mailed after business hours.

9.                  Governing Law. This Security Agreement and any claim,
controversy, dispute or cause of action (whether in contract or tort or
otherwise) based upon, arising out of or relating to this Security Agreement and
the transactions contemplated hereby and thereby shall be governed by, and
construed in accordance with, the laws of the United States and the State of New
Jersey without giving effect to any choice or conflict of law provision or rule
(whether of the State of New Jersey or any other jurisdiction).

 

 

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IN WITNESS WHEREOF, the parties have caused this Security Agreement to be duly
executed and delivered by its officer thereunto duly authorized as of the date
first above written.

 

 

 

Axiom Corp.

 

 

 

By: /s/ Tyler Pearson

Name: Tyler Pearson

Title: CEO

 

Address for Notices:

 

380 Vansickle Road, Unit 600,

St. Catharines, Ontario, Canada

L2S 0B5

 

Email:

 

 

Delta Paper, Inc.

 

 

By: Jeff Bergman

Name: Jeff Bregman

Title: President

 

Address for Notices:

 

8295 National Hwy

Pennsauken Township, NJ

Email: jbregman@deltapaper.com

 

 

 

 

 

 

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SCHEDULE A

PATENT

 

US Patent No. 5,698,293 SCHEDULE B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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TRADEMARK

 

 

PAPERNUTS             Reg. No. 3,170,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SCHEDULE C

WEBSITE DOMAIN NAME

 

www.papernuts.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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