West Virginia Convertible Note Subscription Agreement is a legal document that outlines the terms and conditions of an investment agreement between an investor and a company based in West Virginia. This agreement allows the investor to buy convertible notes, which can later be converted into equity shares in the company. The West Virginia Convertible Note Subscription Agreement typically includes details such as the name and address of the investor and the company, the principal amount of the investment, the interest rate, the maturity date, and the conversion terms. It also outlines the rights and obligations of both parties, including the rights of the investor to convert the notes into equity, participate in future funding rounds, or receive repayment with interest. This agreement can be used by startups or early-stage companies in West Virginia seeking capital to fund their growth or expansion plans. By issuing convertible notes instead of traditional debt or equity, companies can attract investors who are willing to take a higher risk in exchange for the potential of significant returns. Different types of West Virginia Convertible Note Subscription Agreements may include variations in terms and conditions, depending on the specific needs and negotiations between the investor and the company. Some common types include: 1. Early Conversion Agreement: This type of agreement allows the investor to convert their notes into equity shares before the maturity date, usually triggered by certain events such as a new funding round or a specific valuation threshold. 2. Automatic Conversion Agreement: In this case, the notes automatically convert into equity shares at a predetermined conversion ratio or price on a specified date or event. 3. Discretionary Conversion Agreement: This type allows the company to decide whether to convert the notes into equity shares based on certain conditions or milestones. The decision is usually at the company's discretion. 4. Qualified Financing or IPO Conversion Agreement: With this type of agreement, the notes convert automatically into equity shares upon the occurrence of a qualified financing event, such as an initial public offering (IPO) or a large funding round. It is important for both the investor and the company to carefully review and negotiate the terms of the West Virginia Convertible Note Subscription Agreement to ensure their respective rights and obligations are properly addressed and protected. Consulting legal professionals experienced in securities and investment law is highly recommended in order to draft a comprehensive and legally binding agreement.