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The Blind Trust Agreement is essential in situations where individuals need to eliminate potential conflicts of interest by completely separating themselves from their investment decisions. This document is particularly relevant for public officials, corporate executives, or investment professionals who must demonstrate independence from their financial interests. Under German law, while traditional common law trusts are not recognized, these arrangements are structured through Treuhand relationships, combining elements of contract and property law. The agreement details the complete transfer of asset management authority to an independent trustee, establishing strict information barriers, communication protocols, and reporting requirements. It includes comprehensive provisions for trustee powers, investment guidelines, confidentiality obligations, and termination conditions, all while ensuring compliance with German regulatory requirements including banking regulations (KWG), investment laws (KAGB), and data protection regulations (BDSG).

1. Parties: Identification of the settlor (transferring the assets), the trustee (managing the assets), and any protector or supervisor if applicable

2. Background: Context for the agreement's creation, including the settlor's desire to avoid conflicts of interest and establish independent asset management

3. Definitions: Key terms used throughout the agreement, including 'Trust Assets', 'Blind Trust', 'Investment Decisions', 'Confidential Information', etc.

4. Establishment of Trust: Creation of the trust relationship, transfer of assets, and declaration of the blind trust structure

5. Independence Requirements: Provisions ensuring complete separation between settlor and investment decisions, including communication restrictions

6. Trustee Powers and Duties: Comprehensive outline of trustee's authority, investment powers, and fiduciary responsibilities

7. Investment Guidelines: General parameters for investment decisions while maintaining blind status

8. Confidentiality Obligations: Strict provisions regarding information barriers and confidentiality requirements

9. Reporting Requirements: Specifications for permitted communications and required reports, maintaining blind status

10. Compensation: Trustee fees, expense reimbursement, and payment terms

11. Term and Termination: Duration of the trust, circumstances for termination, and process for trust dissolution

12. Liability and Indemnification: Trustee liability limitations and indemnification provisions

13. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

14. Amendment Provisions: Procedures for modifying the agreement while maintaining blind status