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In this video tutorial, the presenter demonstrates how to edit a contract template using Remote Pass. To start, open a pending contract and click on the "edit template" button. The smart editor allows customization by adding or editing sections using the blue text areas. Users can access a list of placeholders for creating dynamic templates and search for them using the "add" sign. Sections can be deleted or reordered as needed. Once editing is complete, save the changes, name the template, and click "save." The modifications will apply to the contract, and users can preview or download it as a PDF. The updated template will be available for future contract creation.