Ex-(d)(iv)
November 12, 2007
Xxxxxxx X. Xxxx
President and Chief Executive Officer
Schwab Investments
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Re: Schwab Investments
Dear Xx. Xxxx:
This letter will confirm our agreement to limit net operating expenses of the
following funds, as noted in the table below and described in the funds'
registration statements filed with the Securities and Exchange Commission.
NET OPERATING GUARANTEED
FUND EXPENSE LIMIT THROUGH
SCHWAB YIELDPLUS FUND INVESTOR 58 bps n/a
SHARES
SCHWAB YIELDPLUS FUND 43 bps n/a
SELECT SHARES
SCHWAB SHORT-TERM BOND 55 bps 11/14/09
MARKET FUND
SCHWAB TOTAL BOND 53 bps n/a
MARKET FUND
SCHWAB GNMA FUND 74 bps 11/14/09
INVESTOR SHARES
SCHWAB GNMA 55 bps 11/14/09
SELECT SHARES
SCHWAB INFLATION PROTECTED FUND 65 bps 11/14/09
INVESTOR SHARES
SCHWAB INFLATION PROTECTED FUND 50 bps 11/14/09
SELECT SHARES
Ex-(d)(iv)
With respect to the following Schwab Funds, Schwab and the investment adviser
have agreed to limit the fund's "net operating expenses" (excluding interest,
taxes, and certain non-routine expenses) to 0.49% for so long as the investment
adviser serves as the adviser to the fund. This agreement may only be amended or
terminated with the approval of the fund's Board of Trustees.
Schwab Tax-Free YieldPlus Fund
Xxxxxx Tax-Free Bond Fund
Schwab California Tax-Free YieldPlus Fund
Schwab California Tax-Free Bond Fund
Sincerely,
/s/ Xxxxxx Xxxxxxx /s/ Xxxxxxx Xxxxxxx
------------------------- ---------------------------------------
Xxxxxx Xxxxxxx Xxxxxxx Xxxxxxx
Senior Vice President and Vice President
Chief Financial Officer Product Strategy and Product Management
Xxxxxxx Xxxxxx Investment Xxxxxxx Xxxxxx & Co., Inc.
Management, Inc.
cc: Xxxxxxx, Xxxxxxx
Xxxxxx, Xxxx
Xxx, Xxxxxxx
Xxxxxx, Xxxxx
Xxxxxx, Xxxxxxxx
Xxxx, Xxxxxxx
Xxxxxxx, Xxxxx
Xxxxxxxxx, Xxxxx
Xxxxxxx, Xxxxxx
Xxxxxx, Xxx
Xxxxxxx, Xxxxxxx
Xxxxxxx, Xxxxxx
