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In this tutorial, Scott from Cruise Consulting discusses a sample convertible note agreement, highlighting its significance for understanding the document. He recommends using templates provided by law firms, as they will facilitate proper documentation of the deal. Key elements of the agreement include the amount of investment, the repayment term or extension conditions, and the valuation cap. Scott emphasizes the importance of these components and mentions the conversion preferences, noting that institutional VCs typically favor preferred shares. He encourages viewers to review the convertible note template for better comprehension.