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In this video, Scott from Cruise Consulting discusses a sample convertible note agreement, emphasizing that while a template is provided for informational purposes, it's best to use a law firm's version for official documentation. Key elements highlighted include the loan amount, repayment terms, and valuation cap, which are critical for structuring the deal. The video also notes the importance of understanding whether the note will convert to common or preferred shares, with a tendency toward preferred shares, especially with institutional venture capitalists. Viewers are encouraged to review the convertible note template for a better understanding of its components.