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Scott from Cruise Consulting discusses a sample convertible note agreement and emphasizes the importance of using a law firm's template for documentation. He highlights key components of the agreement, such as the loan amount, repayment terms, and valuation cap. Scott notes that the valuation cap is crucial, and he has previously discussed it in other videos. Additionally, he mentions the section regarding conversion to common or preferred stock, indicating that institutional venture capitalists typically prefer preferred stock. He advises viewers to familiarize themselves with the convertible note template for better understanding.