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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 sets clear expectations for employees when handling this equipment. The video tutorial discusses employee permissions and responsibilities, emphasizing that employees must regularly maintain equipment and return it upon leaving the company. It also outlines policies regarding the use of company equipment, particularly when taking it off-site. The agreement typically covers common office equipment that falls under these regulations, ensuring that both parties understand their rights and obligations related to the equipment's usage and maintenance.