Knowt Equipment Buy-Out Agreement — Mohamad Abboushi

Agreement Overview

• Written acknowledgment by employee Mohamad Abboushi regarding company-issued equipment.
• Equipment in question: Restored Apple iPad mini 4 (Wi-Fi, 128 GB) – Space Gray.
• Document functions as a conditional purchase agreement that activates upon termination of employment.
• Covers both voluntary and involuntary termination scenarios.
• Establishes that the equipment remains property of Knowt until purchased by the employee.

Financial Terms

• Original cost of the iPad: (104.99\ \text{USD}).
• Employee buy-out rate: 80\% of the original price.
  • Calculation: 0.8 \times 104.99 = 83.992 \approx 83.99\ \text{USD}.
  • Rounded, contractual purchase price: (83.99\ \text{USD}).
• No return option: once employment ends, employee must purchase; refunds or returns are explicitly disallowed.

Employee Obligations

• Prompt completion of purchase: Abboushi must pay 83.99 quickly upon employment termination.
• Proper care & handling: responsible for maintaining device condition during tenure.
• Lawful use only: equipment use restricted to legal activities.
• Must accept that ownership transfers only after payment, even if employee possessed device during employment.

Company Obligations & Rights

• Knowt retains full ownership until payment is received.
• Company may require purchase "as otherwise advised," giving it unilateral discretion (e.g., policy changes).
• No stated duty for Knowt to refund, replace, or repair equipment once purchased by employee.

Duration & Effective Date

• Agreement effective beginning of employment and stays active until either:
  • Abboushi buys the iPad, or
  • Company issues alternate written instruction.
• Document date noted as 06/12/25 (interpretable as June 12, 2025, unless context uses day-month-year).

Signatures & Formalities

• Employee name printed: Mohamad Abboushi.
• Signature line provided but unsigned in transcript.
• Date reflects employee’s acknowledgment timeline.
• Agreement operates as a binding internal contract; absence of employer signature implies policy is company-issued.

Practical & Ethical Implications

• Asset management: Helps company track and monetize hardware given to staff.
• Equity vs. liability: Employee retains partial financial liability (80%) instead of full retail replacement.
• Incentivizes care: Knowledge of mandatory purchase may encourage responsible handling.
• Employment leverage: Could be controversial if employee feels coerced; raises questions about fairness in involuntary termination cases.
• Potential taxation concerns: Purchased below market value—could be treated as a fringe benefit in some jurisdictions.

Related Concepts & Real-World Relevance

• Similar to loan-to-own or lease-to-own models in consumer electronics.
• Echoes “Bring Your Own Device” (BYOD) plus company-subsidized ownership trends, balancing security with convenience.
• May intersect with data protection laws (e.g., wiping corporate data before ownership transfer).

Key Definitions

• Voluntary termination – employee resigns.
• Involuntary termination – termination initiated by the company (layoff, firing, redundancy, etc.).
• Original cost – invoice price paid by company.
• Purchase price – \text{Original cost} \times 0.8.