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An employee equipment agreement is a legally binding document between an employer and an employee that governs the use of company-owned work equipment. It outlines the employer's expectations regarding the handling and maintenance of equipment, emphasizing that employees must keep the equipment in good condition beyond normal wear and tear. Employees are also required to return the equipment upon leaving the company. The agreement details policies related to using equipment, especially concerning authorized removal from the main workplace. The video tutorial discusses permissions and responsibilities of employees, as well as common types of office equipment typically covered by this agreement.