A more thorough explanation:

An investment-direction agreement is a legal contract between a trustee and a beneficiary of a trust. The agreement allows the beneficiary to direct the trustee on how to invest the trust's assets. The trustee agrees to follow the beneficiary's investment instructions, even if it goes against the trustee's legal obligation to diversify the trust's assets. In return, the beneficiary agrees to hold the trustee harmless for any losses resulting from not diversifying.

John is the beneficiary of a trust that holds $1 million in assets. He believes that investing all the money in a single stock will yield the highest return. However, the trustee is legally obligated to diversify the trust's assets to minimize risk. To achieve his investment goals, John enters into an investment-direction agreement with the trustee. The agreement allows John to direct the trustee to invest all the trust's assets in a single stock. In return, John agrees to hold the trustee harmless for any losses resulting from not diversifying.

Another example could be a beneficiary who wants to invest in a specific industry or sector, such as technology or healthcare. The investment-direction agreement allows the beneficiary to direct the trustee to invest in companies within that industry or sector, even if it goes against the trustee's legal obligation to diversify.

These examples illustrate how an investment-direction agreement can give beneficiaries more control over how their trust's assets are invested, even if it goes against traditional investment strategies.