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An employee equipment agreement is a binding contract between an employer and an employee concerning the use of company-owned equipment. It outlines the expectations for employees regarding the upkeep and return of this equipment. Key points include the responsibilities of employees to maintain equipment beyond normal wear and tear and to return it upon leaving the company. The agreement also specifies policies for using company equipment, including permissions for taking it off-site. Common office equipment covered under such agreements typically includes essential tools used in various work environments. The video discusses these permissions, responsibilities, and equipment types in greater detail.