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In this video, Matthew explains how to create an independent contractor agreement using legaltemplates.net. He begins by directing viewers to click a link for business forms on the site. Matthew navigates to the service contracts section and selects the independent contractor agreement option for Texas. He then discusses entering client information and independent contractor details, advising viewers to specify the type of services provided. He also covers the topics of compensation and reimbursement for expenses. The tutorial serves as a step-by-step guide for drafting this essential legal document.