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An employee equipment agreement is a legally binding contract between an employer and employee regarding company-owned equipment for work use. It outlines the employer's expectations regarding the employee's handling of this equipment. The video covers employee permissions and responsibilities, including the requirement for regular maintenance and the obligation to return equipment if the employee leaves the company. The agreement also specifies policies on using company equipment, particularly concerning taking it off the premises. Common office equipment typically covered under this agreement includes various devices essential for job performance.