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In this tutorial, Matthew explains how to create a non-compete agreement using legal templates. He shares a link to these templates and navigates to the section for business forms. Matthew demonstrates selecting the non-compete agreement option and choosing Texas as the state for the document. He fills out details including the company's name, address, and representative's information, using "MK Tips" as the company name and "Mr. Ed" as the employee. He also mentions inputting the employee's position and employment status before proceeding to the next steps in the template process.