Yes exactly.
Because PAY is an ERC20-based token, it can be stored together in the same address as ETH.
In fact, within the same address, you can even store multiple types of tokens, as long as they are all ERC20-based (e.g. you can store ETH, PAY, REP, GNT, HMQ, etc. all in the same address).
1 BTC is a respectable amount.
But actually, what I meant was that the rewards payout should be substantial enough before TenX starts paying them out to the PAY holder.
E.g. they should not start sending out any ETH at least until the payout for any particular PAY holder exceeds 0.01 ETH, otherwise if the payout is only 0.001 ETH, for example, then the entire payout is just going to be eaten up by the transaction fees.
So far, they did not specifically explain how this is going to be done, so we don't know the specifics yet.