Exhibit (d)(xviii)
May 20, 2005
Xxxxxx Xxxxxxxx,
President and Chief Executive Officer,
Schwab Capital Trust
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Re: Schwab Target Retirement Funds
Dear Xx. Xxxxxxxx:
This letter will confirm our agreement to limit the net operating expenses of
each of the above-named funds as noted in the table below and described in the
fund's registration statement to be filed with the Securities and Exchange
Commission.
NET
OPERATING
EXPENSE GUARANTEED
FUND LIMIT THROUGH:
SCHWAB TARGET 2010 0.06% 2/27/06
FUND
SCHWAB TARGET 2020 0.04%
FUND 2/27/06
SCHWAB TARGET 2030 0.03% 2/27/06
FUND
SCHWAB TARGET 2040 0.01% 2/27/06
FUND
SCHWAB RETIREMENT 0.10% 2/27/06
INCOME FUND
Sincerely,
/s/ Xxxxxxx X. Xxxx /s/ Xxxxxxx Xxxxxxx
------------------- -------------------
Xxxxxxx X. Xxxx Xxxxxxx Xxxxxxx,
Senior Vice President and Chief Vice President, Schwab Product
Investment Xxxxxxx, Xxxxxxx Management
Schwab Investment Management, Inc. Xxxxxxx Xxxxxx & Co., Inc.
cc:
Xxxx Xxxxxx
Xxxxxxx Xxxxxxx
Xxxxxx Xxxxxxx
Xxx-Xxx Xxx
Xxxxxxx X. Hand
