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In this video tutorial, Matthew explains how to create a photo licensing agreement using legal templates. He prompts viewers to click the link provided to access business forms and suggests using the search function to locate the photo licensing agreement quickly. Once found, he guides viewers to select the appropriate state and details about the photos, including the client's name (Mr. Ed) and the potential number of clients. Matthew also discusses categorizing the photos (e.g., weddings, parties) and explains the type of license granted, mentioning options like exclusive licenses and the term of the license, such as perpetual until a specified condition.