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EXHIBIT (g)(xvi)
November 1, 1998
SCHWAB ANNUITY PORTFOLIOS
RE: Custodian Services Fees
Ladies and Gentlemen:
This letter constitutes our agreement with respect to compensation to be paid to
PNC Bank, National Association ("PNC") under the terms of a Custodian Services
Agreement (the "Agreement") dated March 29, 1994 between Schwab Annuity
Portfolios ("you" or the "Trust"), on behalf of the Fund listed on the attached
Schedule 1, as amended from time to time (the "Funds"), and PNC. Pursuant to the
terms of the Agreement, the Trust, on behalf of the Fund, will pay PNC, for the
services that PNC will provide to the Fund as follows:
1. The Fund shall pay an asset based fee of .009% on the first $200
million of average daily gross assets; .008% on the next $200 million
of average daily gross assets; .007% on the next $200 million of
average daily gross assets; .003% on the next $200 million of average
daily gross assets; .0025% on the next $200 million of average daily
gross assets and .002% on average daily gross assets in excess of $1
billion; exclusive of out-of-pocket expenses and transaction charges.
The fee shall be calculated daily and paid monthly. The fee for the
period from the date hereof until the end of that year shall be
pro-rated according to the proportion which such period bears to the
full annual period.
2. The Fund shall pay transaction charges of $16.50 for each physical
delivery; $8.25 for each fed book entry transaction; $6.50 for each
depository eligible transaction; $10.00 for each GNMA depository
transaction, $7.50 for each repo with PNC (per round-trip piece of
collateral); $30.00 for each options contract
and $50.00 for each futures contract.
A transaction includes Buys, Sells, Maturities, Free Deliveries, Free Receipts,
Exercised or Expired Options.
Out-of-pocket expenses include but are not limited to, postage, overnight
express charges, report transmission charges, microfiche/microfilm, Federal
Reserve wire fees, wire fees for receipt and disbursement, record
retention/storage, custody transfer/registration fees ($10.00 per item); and
cost of independent pricing services.
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PNC accepts the payment to it hereunder as full payment with respect to
services provided to the Funds under the terms of the Agreement. This Agreement
supersedes all previous Agreements concerning compensation for services to be
provided to the Trust on behalf of the Fund with respect to the Agreement.
Very truly yours,
PNC BANK, NATIONAL ASSOCIATION
By: /s/ Xxxxxx X. Xxxxxxxx
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Name: Xxxxxx X. Xxxxxxxx
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Title: Vice President
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Accepted:
SCHWAB ANNUITY PORTFOLIOS
on behalf of the Fund listed on the attached Schedule I, as amended from time to
time.
By: /s/ Tai-Xxxx Xxxx
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Name: Xxx-Xxxx Xxxx
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Title: Treasurer and Principal Financial Officer
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SCHEDULE I
Custodian Services Fees
Fund
Schwab S & P 500 Portfolio
PNC BANK, NATIONAL ASSOCIATION
By: /s/ Xxxxxx X. Xxxxxxxx
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Name: Xxxxxx X. Xxxxxxxx
--------------------------------
Title: Vice President
--------------------------------
SCHWAB ANNUITY PORTFOLIOS
By: /s/ Tai-Xxxx Xxxx
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Name: Xxx-Xxxx Xxxx
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Title: Treasurer and Principal Financial Officer
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November 1, 1998
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SCHEDULE A
Custodian and Accounting Services Fees
Portfolio
Schwab Money Market Portfolio
SCHWAB ANNUITY PORTFOLIO On
behalf of each of the Funds
listed above.
By: /s/ Tai-Xxxx Xxxx
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Name: Tai-Xxxx Xxxx
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Title: Treasurer and Principal
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Financial Officer
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PNC BANK, NATIONAL ASSOCIATION
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------
Name: Xxxxxx X. Xxxxxxxx
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Title: Vice President
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PFPC INC.
By: /s/ Xxxxxx X. Xxxxxxxx
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Name: Xxxxxx X. Xxxxxxxx
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Title: Senior Vice President
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November 1, 1998
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SCHEDULE A
Accounting Services Agreement
Date
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Schwab Money Market Portfolio March 29, 1994
SCHWAB ANNUITY PORTFOLIO On behalf of each of the Funds listed above.
By: /s/ Tai-Xxxx Xxxx
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Name: Xxx-Xxxx Xxxx
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Title: Treasurer and Principal Financial Officer
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PFPC INC.
By: /s/ Xxxxxx X. Xxxxxxxx
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Name: Xxxxxx X. Xxxxxxxx
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Title: Senior Vice President
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November 1, 1998
