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Scott from Cruise Consulting discusses a sample convertible note agreement in this tutorial. He advises using a law firm's template for documentation, emphasizing the educational value of reviewing such templates. Key components of the convertible note include the loan amount, repayment terms, and valuation cap, which are crucial for understanding the agreement. He also highlights the importance of whether the note converts to common or preferred stock, noting that institutional VCs typically prefer conversion to preferred stock. Scott encourages viewers to familiarize themselves with the template, as it's straightforward yet essential for grasping convertible notes.