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An employee equipment agreement is a legally binding contract between an employer and employee concerning the use of company-owned equipment. It specifies the employer's expectations for the employee's handling of this equipment. Key points include the employee's responsibility for regular maintenance, beyond normal wear and tear, and the obligation to return equipment upon leaving the company. The agreement outlines policies for using company equipment, particularly regarding removing it from the primary location to field sites or employees' homes. The video discusses common office equipment covered under this agreement, emphasizing the importance of clear permissions and responsibilities.