EXHIBIT 6
AMENDED AND RESTATED SERVICING AGREEMENT
The Servicing Agreement executed as of May 30, 1996 between GMO TRUST,
a Massachusetts business trust (the "Trust") on behalf of each of its Class II,
Class III, Class IV, Class V and Class VI (each a "Class" and collectively the
"Classes") Shares (the "Shares") of each Fund listed on Exhibit I hereto
(collectively, the "Funds"), and GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC, a
Massachusetts limited liability company (the "Shareholder Servicer"), is hereby
amended and restated effective June 3, 2004:
W I T N E S S E T H:
That in consideration of the mutual covenants herein contained, it is
agreed as follows:
1. SERVICES TO BE RENDERED BY SERVICING AGENT TO THE TRUST.
(a) The Shareholder Servicer will, at its expense, provide direct
client service, maintenance and reporting to shareholders of each Class of
Shares of each Fund set forth on Exhibit 1 hereto, such services and reporting
to include, without limitation, professional and informative reporting, client
account information, personal and electronic access to Fund information, access
to analysis and explanations of Fund reports, and assistance in the correction
and maintenance of client-related information.
(b) The Shareholder Servicer shall not be obligated under this
agreement to pay any expenses of or for the Trust or of or for the Fund not
expressly assumed by the Shareholder Servicer pursuant to this Section 1.
2. OTHER AGREEMENTS, ETC.
It is understood that any of the shareholders, Trustees, officers and
employees of the Trust may be a partner, shareholder, director, officer or
employee of, or be otherwise interested in, the Shareholder Servicer, and in any
person controlled by or under common control with the Shareholder Servicer, and
that the Shareholder Servicer and any person controlled by or under common
control with the Shareholder Servicer may have an interest in the Trust. It is
also understood that the Shareholder Servicer and persons controlled by or under
common control with the Shareholder Servicer may have advisory, servicing,
distribution or other contracts with other organizations and persons, and may
have other interests and businesses.
3. COMPENSATION TO BE PAID BY THE TRUST TO THE SERVICING AGENT.
Each Class of Shares of each Fund will pay to the Shareholder Servicer
as compensation for the Shareholder Servicer's services rendered and for the
expenses borne by the Shareholder Servicer with respect to such Class of Shares
of such Fund pursuant to Section 1, a fee, computed and
accrued daily, and paid monthly or at such other intervals as the Trustees shall
determine, at the annual rate of such Class' average daily net asset value set
forth on the Fee Rate Schedule attached as Exhibit II hereto. Such fee shall be
payable for each month (or other interval) within five (5) business days after
the end of such month (or other interval). The Shareholder Servicer, as
reflected in Exhibit II or otherwise by notice to the Trust, may determine to
temporarily or permanently reduce or waive part or all of the compensation it is
entitled to receive pursuant to this Contract with respect to one or more Funds
or Classes.
If the Servicing Agent shall serve for less than the whole of a month
(or other interval), the foregoing compensation shall be prorated.
4. ASSIGNMENT TERMINATES THIS CONTRACT; AMENDMENTS OF THIS CONTRACT.
This Contract shall automatically terminate, without the payment of any
penalty, in the event of its assignment; provided, however, in the event of
consolidation or merger in which the Shareholder Servicer is not the surviving
corporation or which results in the acquisition of substantially all the
Shareholder Servicer's outstanding stock by a single person or entity or by a
group of persons and/or entities acting in concert, or in the event of the sale
or transfer of substantially all the Shareholder Servicer's assets, the
Shareholder Servicer may assign any such agreement to such surviving entity,
acquiring entity, assignee or purchaser, as the case may be. This Contract shall
not be amended unless such amendment is approved by votes of a majority of both
(a) the Trustees of the Trust, and (b) the Independent Trustees.
5. EFFECTIVE PERIOD AND TERMINATION OF THIS CONTRACT.
This Contract shall become effective upon its execution, and shall
remain in full force and effect continuously thereafter (unless terminated
automatically as set forth in Section 4) until terminated as follows:
(a) Either party hereto may at any time terminate this Contract (or
this Contract's application to one or more Classes or Funds) by not more than
sixty days' written notice delivered or mailed by registered mail, postage
prepaid, to the other party, or
(b) If a majority of both (i) the Trustees of the Trust, and (ii) a
majority of the Independent Trustees, do not specifically approve at least
annually the continuance of this Contract, then this Contract shall
automatically terminate at the close of business on the second anniversary of
its execution, or upon the expiration of one year from the effective date of the
last such continuance, whichever is later.
Termination of this Contract pursuant to this Section 5 shall be
without the payment of any penalty.
6. CERTAIN DEFINITIONS.
For purposes of this Contract, (a) the term "Independent Trustees"
shall mean those Trustees of the Trust who are not interested persons of the
Trust or the Shareholder Servicer, and have no
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direct or indirect financial interest in this Agreement, (b) the terms
"affiliated person", "control", "interested person" and "assignment" shall have
their respective meanings defined in the Investment Company Act of 1940 and the
rules and regulations thereunder, subject, however, to such exemptions as may be
granted by the Securities and Exchange Commission under said Act; and (c) the
phrase "specifically approve at least annually" shall be construed in a manner
consistent with the Investment Company Act of 1940 and the rules and regulations
thereunder.
7. NONLIABILITY OF SERVICING AGENT.
In the absence of willful misfeasance, bad faith or gross negligence on
the part of the Shareholder Servicer, or reckless disregard of its obligations
and duties hereunder, the Shareholder Servicer shall not be subject to any
liability to the Trust, or to any shareholder of the Trust, for any act or
omission in the course of, or connected with, rendering services hereunder.
8. LIMITATION OF LIABILITY OF THE TRUSTEES AND SHAREHOLDERS.
A copy of the Agreement and Declaration of Trust of the Trust is on
file with the Secretary of The Commonwealth of Massachusetts, and notice is
hereby given that this instrument is executed on behalf of the Trustees of the
Trust as Trustees and not individually and that the obligations of this
instrument are not binding upon any of the Trustees or shareholders individually
but are binding only upon the assets and property of the Fund.
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IN WITNESS WHEREOF, GMO TRUST and GRANTHAM, MAYO, VAN OTTERLOO & CO.
LLC have each caused this instrument to be signed in duplicate on its behalf by
its duly authorized representative, all as of the day and year first above
written.
GMO TRUST
By /S/ XXXXXX X. XXXXXXXX
----------------------
Title: Vice President
GRANTHAM, MAYO, VAN OTTERLOO
& CO. LLC
By /S/ XXXXXXX X. XXXXX
--------------------
Title: Member, General Counsel
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EXHIBIT I
GMO U.S. Core Fund
GMO Tobacco-Free Core Fund
GMO U.S. Quality Equity Fund
GMO Value Fund
GMO Intrinsic Value Fund
GMO Growth Fund
GMO Small Cap Value Fund
GMO Small Cap Growth Fund
GMO Real Estate Fund
GMO Tax-Managed U.S. Equities Fund
GMO Tax-Managed Small Companies Fund
GMO Real Asset Fund
GMO International Disciplined Equity Fund
GMO International Intrinsic Value Fund
GMO International Growth Fund
GMO Currency Hedged International Equity Fund
GMO Global Growth Fund
GMO Foreign Fund
GMO Foreign Small Companies Fund
GMO International Small Companies Fund
GMO Emerging Markets Fund
GMO Emerging Countries Fund
GMO Asia Fund
GMO Tax-Managed International Equities Fund
GMO Domestic Bond Fund
GMO Core Plus Bond Fund
GMO International Bond Fund
GMO Currency Hedged International Bond Fund
GMO Global Bond Fund
GMO Emerging Country Debt Fund
GMO Short-Duration Investment Fund
GMO Global Hedged Equity Fund
GMO Inflation Indexed Bond Fund
GMO Emerging Country Debt Share Fund
GMO Benchmark-Free Allocation Fund
GMO International Equity Allocation Fund
GMO Global Balanced Asset Allocation Fund
GMO Global (U.S.+) Equity Allocation Fund
GMO U.S. Sector Fund
GMO Global Equity Allocation Fund
GMO U.S. Equity Allocation Fund
GMO Taiwan Fund
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SERVICE FEE SCHEDULE EXHIBIT II (cont'd)
CLASS II SHARES
FUND SERVICE FEE
---- -----------
GMO U.S. Core Fund 0.22%
GMO Real Asset Fund 0.22%
GMO International Intrinsic Value Fund 0.22%
GMO Global Growth Fund 0.22%
GMO Foreign Fund 0.22%
CLASS III SHARES
FUND SERVICE FEE
---- -----------
GMO U.S. Core Fund 0.15%
GMO Tobacco-Free Core Fund 0.15%
GMO U.S. Quality Equity Fund 0.15%
GMO Value Fund 0.15%
GMO Intrinsic Value Fund 0.15%
GMO Growth Fund 0.15%
GMO Small Cap Value Fund 0.15%
GMO Small Cap Growth Fund 0.15%
GMO Real Estate Fund 0.15%
GMO Tax-Managed U.S. Equities Fund 0.15%
GMO Tax-Managed Small Companies Fund 0.15%
GMO Real Asset Fund 0.15%
GMO International Disciplined Equity Fund 0.15%
GMO International Intrinsic Value Fund 0.15%
GMO International Growth Fund 0.15%
GMO Currency Hedged International Equity Fund 0.15%
GMO Global Growth Fund 0.15%
GMO Foreign Fund 0.15%
GMO Foreign Small Companies Fund 0.15%
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SERVICE FEE SCHEDULE EXHIBIT II (cont'd)
FUND SERVICE FEE
---- -----------
GMO International Small Companies Fund 0.15%
GMO Emerging Markets Fund 0.15%
GMO Emerging Countries Fund 0.15%
GMO Asia Fund 0.15%
GMO Tax-Managed International Equities Fund 0.15%
GMO Domestic Bond Fund 0.15%
GMO Core Plus Bond Fund 0.15%
GMO Short-Duration Investment Fund 0.15%
GMO Global Hedged Equity Fund 0.15%
GMO International Bond Fund 0.15%
GMO Currency Hedged International Bond Fund 0.15%
GMO Global Bond Fund 0.15%
GMO Emerging Country Debt Fund 0.15%
GMO Inflation Indexed Bond Fund 0.15%
GMO U.S. Sector Fund 0.15%
GMO Emerging Country Debt Share Fund 0.00%
GMO Benchmark-Free Allocation Fund 0.00%
GMO International Equity Allocation Fund 0.00%
GMO Global Balanced Asset Allocation Fund 0.00%
GMO Global (U.S.+) Equity Allocation Fund 0.00%
GMO Global Equity Allocation Fund 0.00%
GMO U.S. Equity Allocation Fund 0.00%
GMO Taiwan Fund 0.15%
CLASS IV SHARES
FUND SERVICE FEE
---- -----------
GMO U.S. Core Fund 0.13% (with reduction: 0.105%)*
GMO Tobacco-Free Core Fund 0.13% (with reduction: 0.105%)*
GMO U.S. Quality Equity Fund 0.13% (with reduction: 0.105%)*
GMO Intrinsic Value Fund 0.13% (with reduction: 0.105%)*
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SERVICE FEE SCHEDULE EXHIBIT II (cont'd)
CLASS IV SHARES
FUND SERVICE FEE
---- -----------
GMO Real Asset Fund 0.13% (with reduction: 0.105%)*
GMO International Disciplined Equity Fund 0.13% (with reduction: 0.09%)*
GMO International Intrinsic Value Fund 0.13% (with reduction: 0.09%)*
GMO Global Growth Fund 0.13% (with reduction: 0.105%)*
GMO Foreign Fund 0.13% (with reduction: 0.09%)*
GMO Foreign Small Companies Fund 0.13% (with reduction: 0.10%)*
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SERVICE FEE SCHEDULE EXHIBIT II (cont'd)
FUND SERVICE FEE
---- -----------
GMO Emerging Markets Fund 0.13% (with reduction: 0.105%)*
GMO Emerging Country Debt Fund 0.13% (with reduction: 0.10%)*
CLASS V SHARES
FUND SERVICE FEE
---- -----------
GMO U.S. Core Fund 0.12% (with reduction: 0.085%)*
GMO Emerging Markets Fund 0.12% (with reduction: 0.085%)*
CLASS VI SHARES
FUND SERVICE FEE
---- -----------
GMO U.S. Core Fund 0.10% (with reduction: 0.055%)*
GMO Emerging Markets Fund 0.10% (with reduction: 0.055%)*
* Notwithstanding the higher maximum annual service fee rate provided for in the
Trust's Amended and Restated Service Plan, GMO has agreed permanently to reduce
the annual service fee it receives from Class IV, Class V and Class VI shares of
these Funds to the rate noted in the tables. This "reduced" fee rate may not be
increased without prior approval by the Trustees in the manner provided for the
amendment of this Agreement in Section 4 hereof.
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