Okay, so it was around the Diamonds & Pearls ear - when Prince was still sporting a typhoon and things were still smooth with Warners - I heard somewhere that Prince signed a deal to be guaranteed something like $10 million per album for the next 5 albums. I also heard he was getting a job as a chairman at Warner Brothers.

How much of this is true? I don't know that any of it was true, but it is a FACT that I did hear that back then.

I think I remember hearing something like that also back then but considering how things turned out, I'm going to go with it not being true.

It was totally true!!! I don't remember the exact amount of money he get. He became also vice-president i think of Warner at that time.

That's about right. According to The Vault:

31 Aug 1992
Prince signs a new recording contract with Warners. His existing contract was extended and the reconfigured contract called for $10 million in advances per record, with a royalty rate of around 20%, a figure that placed Prince near the top of the music industry artists. However, the deal was structured so that if an album doesn't sell 5 million copies worldwide, he won't receive $10 million for his following album. As part of the deal PP Records became a joint venture with Warners.

--

It then goes on to talk briefly about how the partnership between P and WB re: PP Records would change the duties and expenditure of video and promotional activities, the two new publishing agreements, including one that would seek to discover "new talents", the extension of Controversy Music as a separate publishing agreement, and how Prince was hired as a VP of Warner Records, with an office in L.A. chiefly to supervise his labels and advice Warners on other artists (the reason for this being Prince wanted Time-Warner stock options "according to a source").

I guess that answered that then!

I remember the ground breaking deal of the time. It then only took a few months to pass and he killed off Prince.