Common use of PAYMENTS AND ROYALTY Clause in Contracts

PAYMENTS AND ROYALTY. In consideration for CSM's grant above and in consideration of the other terms and conditions of this Agreement, Atlas agrees to make the payment and to pay the following consideration: 3.1 At the execution of this Agreement Atlas will issue 400,000 shares of Atlas Mining Company common stock in favor of CSM. Said stock will be restricted in nature, and subject to the rules of section 144 of the Securities Exchange Commission. 3.2 If the Agreement remains in effect, on or before the yearly anniversary of the date herein, and on every anniversary thereafter, Atlas will issue 100,000 shares of Atlas Mining Company common stock to the favor of CSM for a one year extension of the Agreement. 3.3 If Atlas sells any product from the Dragon Mine during the period of the Agreement, then Atlas will pay to CSM a 3% royalty of the gross sales. All sales royalties are payable in cash and will be paid within thirty (30) days after receipt of payment to Atlas. Any royalties not timely paid, shall bear interest at the Bank of America prime rate then in effect plus 2%. 3.4 If Atlas sales of any product from the Dragon Mine should reach One Million Dollars ($1,000,000.00) during any one year period of this Agreement, then Atlas may purchase the Dragon Mine from CSM for Five hundred Thousand Dollars ($500,000.00).