Exhibit (d)(iii)
April 29, 2008
Xxxxxxx X. Xxxx,
President and Chief Executive Officer,
Xxxxxx Xxxxxxx Portfolios
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Re: Schwab Annuity Portfolios
Dear Xx. Xxxx:
This letter will confirm our agreement to limit net operating expenses of the
following portfolios, as noted in the table below and described in the
portfolios' registration statement filed with the Securities and Exchange
Commission.
NET OPERATING GUARANTEED
PORTFOLIO EXPENSE LIMIT LIMIT
--------- ------------- -----
SCHWAB MONEY MARKET PORTFOLIO 50 bp expires 4/29/2009
SCHWAB MARKETTRACK GROWTH PORTFOLIO II 50 bp expires 4/29/2009
SCHWAB S&P 500 PORTFOLIO 28 bp expires 4/29/2009
Sincerely,
/s/ Xxxxxx Xxxxxxx /s/ Xxxxxx Xxxxxxxx
--------------------------- ----------------------------
Xxxxxx Xxxxxxx, Xxxxxx Xxxxxxxx,
Chief Financial Officer, Vice President Schwab Funds
Xxxxxxx Xxxxxx Investment Management, Inc.
CC: Xxxxx Xxxxx
Xxxxxxxxxxx Xxxx
Zuogang Xxx
Xxxxx Xxxxxx
