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An employee equipment agreement is a legally binding contract between an employer and an employee concerning the use of company-owned equipment. It specifies the company's expectations for employees regarding the maintenance and return of the equipment, particularly when they leave the company. Key points include employee responsibilities for regular upkeep outside of normal wear and tear and guidelines for taking equipment offsite. The agreement typically covers common office equipment that falls under these policies, emphasizing permissions and responsibilities related to its use. The video will explain these elements in greater detail.