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In this video tutorial, Matthew explains how to create an independent contractor agreement using legaltemplates.net. He begins by directing viewers to a specific link that takes them to the website. After navigating to the business forms section and selecting service contracts, he focuses on the independent contractor agreement. Matthew chooses Texas as the state for the agreement and prompts viewers to input general information about the client (Mr. Ed) and the independent contractor. He emphasizes filling out the type of services provided and details regarding compensation and expense reimbursement, guiding viewers through the necessary steps to complete the agreement.