EX-99.(D)(IV) 4 f34365exv99wxdyxivy.txt EXHIBIT 99.(D)(IV) Ex-(d)(iv) November 12, 2007 Randall W. Merk President and Chief Executive Officer Schwab Investments 101 Montgomery Street San Francisco, CA 94104 Re: Schwab Investments Dear Mr. Merk: 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 Schwab Tax-Free Bond Fund Schwab California Tax-Free YieldPlus Fund Schwab California Tax-Free Bond Fund Sincerely, /s/ George Pereira /s/ Carolyn Stewart ------------------------- --------------------------------------- George Pereira Carolyn Stewart Senior Vice President and Vice President Chief Financial Officer Product Strategy and Product Management Charles Schwab Investment Charles Schwab & Co., Inc. Management, Inc. cc: Clinton, Michael Felton, Koji Gao, Zuogang Giblin, James Hafner, Jennifer Hand, Gregory Maddock, Keith Passaglia, Donna Pereira, George Pierce, Jim Stewart, Carolyn Schantz, Steven