Wolverine Resources Corp (WOLV)

[DonShimoda]

On January 31, 2007 Wolverine entered into a consulting agreement with Texada Consulting Inc. The contract is for a period of three years and one month ending on February 28, 2010 (the "minimum term"). Under the terms of the agreement Wolverine will pay Texada $10,000 per month plus expenses for consulting services. If a major commercially viable mineral resource deposit is discovered, Wolverine will issue a bonus of 5% of the total common shares outstanding at the date bonus is paid. If Wolverine does terminate the consulting agreement prior to the minimum term without cause, it will have to pay liquidated damages to Texada Consulting Inc.

Since "a major commercially viable mineral resource deposit" is yet to be discovered, I would have thought the 5% "bonus" would have expired in 2010. But it seems that this sweetheart deal was extended indefinitely...how convenient. You can read the language change in the company's most recent filing:

"On January 31, 2007, the Company entered into a consulting agreement with a company whereby it has agreed to pay $10,000 per month. The Company is obligated to issue a bonus of 5% of the Company’s issued and outstanding common shares as of the date of the payment of the bonus upon and only in the event of the discovery of a major commercially viable mineral resource deposit.


So basically the Presidents brother, through Texada Consulting, is getting 10k a month PLUS 5% of the shares outstanding shares. Gee, the more shares the company issues the more stock he gets...how wonderful for him.