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Exhibit 99.2
AMENDED AND RESTATED ADMINISTRATION AGREEMENT
This Administration Agreement is amended and restated as of March ___,
2001 between GMO TRUST, a Massachusetts business trust (the "Trust") on behalf
of its Class M 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 "Administrator").
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 ADMINISTRATOR TO THE TRUST.
(a) The Administrator will, at its expense, provide administrative support
service to shareholders of Shares of each Fund set forth on Exhibit 1 hereto,
such services to include, without limitation, processing aggregated master
account purchase and redemption orders, coordinating operation of the National
Security Clearing Corporation's Fund/SERV system with intermediary platforms,
providing information about and processing dividend payments, assisting with
distribution of shareholder communications such as proxies, shareholder reports,
dividend and tax notices, updating prospectuses, establishing and maintaining
certain information about the Shares on the Administrator's internet site,
recordkeeping, providing reports to various regulatory agencies, providing
reports to the Trustees of the Trust regarding the administrative support
services provided to the intermediary platform, administering contracts on
behalf of Class M Shares of each Fund, providing direct client service,
maintenance and reporting to platform sponsors and other recordholders of Class
M Shares, and otherwise maintaining the relationship with the platform sponsors.
The Administrator may provide these services directly or may contract with third
party service providers ("Third Party Servicers") to provide any or all of these
services.
(b) The Administrator 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 Administrator 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 Administrator, and in any person
controlled by or under common control with the Administrator, and that the
Administrator and any person controlled by or under common control with the
Administrator may have an interest in the Trust. It is also understood that the
Administrator and persons controlled by or under common control with the
Administrator may have advisory, servicing, distribution or other contracts with
other organizations and persons, and may have other interests and businesses.
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3. COMPENSATION TO BE PAID BY THE TRUST TO THE ADMINISTRATOR.
The Shares of each Fund will pay to the Administrator as compensation for
the Administrator's services rendered and for the expenses borne by the
Administrator 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 Administrator may elect to pay all or any portion of such fee to any Third
Party Servicers performing any services listed in Section 1 hereof for the
Funds. No compensation paid by the Trust hereunder shall be for services
primarily intended to result in the sale of Shares.
If the Administrator shall serve for less than the whole of a month (or
other interval), the foregoing compensation shall be prorated.
4. AMENDMENTS.
This Contract shall not be amended unless such amendment is approved by
the vote of a majority of the Trustees of the Trust.
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, except that either party
hereto may at any time terminate this Contract (or this Contract's application
to one or more Funds) by not more than sixty days' written notice delivered or
mailed by registered mail, postage prepaid, to the other party.
Termination of this Contract pursuant to this Section 5 shall be without
the payment of any penalty.
6. CERTAIN DEFINITIONS.
For the purposes of this Contract, the terms "affiliated person",
"control" and "interested person" 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.
7. NONLIABILITY OF ADMINISTRATOR.
In the absence of willful misfeasance, bad faith or gross negligence on
the part of the Administrator, or reckless disregard of its obligations and
duties hereunder, the Administrator
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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_______________________________________
Title:
GRANTHAM, MAYO, VAN OTTERLOO
& CO. LLC
By_______________________________________
Title:
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EXHIBIT I
GMO U.S. Core Fund
GMO Value Fund
GMO Intrinsic Value Fund
GMO Growth Fund
GMO Small Cap Value Fund
GMO REIT Fund
GMO Tax-Managed U.S. Equities Fund
GMO Foreign Fund
GMO Foreign Small Companies Fund
GMO Emerging Markets Fund
GMO Evolving Countries Fund
GMO Domestic Bond Fund
GMO Global Bond Fund
GMO International Bond Fund
GMO Emerging Country Debt Share Fund
GMO Inflation Indexed Bond Fund
GMO Global Balanced Allocation Fund
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ADMINISTRATION FEE SCHEDULE EXHIBIT II
CLASS M SHARES
FUND SERVICE FEE
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GMO U.S. Core Fund 0.20%
GMO Value Fund 0.20%
GMO Intrinsic Value Fund 0.20%
GMO Growth Fund 0.20%
GMO Small Cap Value Fund 0.20%
GMO REIT Fund 0.20%
GMO Tax-Managed U.S. Equities Fund 0.20%
GMO Foreign Fund 0.20%
GMO Foreign Small Companies Fund 0.20%
GMO Emerging Markets Fund 0.20%
GMO Evolving Countries Fund 0.20%
GMO Domestic Bond Fund 0.20%
GMO Global Bond Fund 0.20%
GMO International Bond Fund 0.20%
GMO Emerging Country Debt Share Fund 0.20%
GMO Inflation Indexed Bond Fund 0.20%
GMO Global Balanced Allocation Fund 0.05%
