September 12, 2006
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
President and Chief Executive Officer
Schwab Investments
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: Schwab Managed Account Portfolios(TM)
Dear ▇▇. ▇▇▇▇▇▇▇▇:
This letter will confirm our agreement to limit net operating expenses of the
above-named fund, as noted in the table below and described in the fund's
registration statement filed with the Securities and Exchange Commission.
TO BE
PROPOSED OER CAP DISCLOSED
FUND AND EXPIRATION DATE EFFECTIVE
---- ------------------- ---------
SCHWAB MANAGED ACCOUNT PORTFOLIOS 0 bps* 9/15/06
Schwab Bond Shares
Schwab Municipal Bond Shares
*The waiver will be permanent for clients of separately managed accounts.
Sincerely,
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
------------------ -------------------
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Senior Vice President and Vice President
Chief Financial Officer Product Strategy and Product Management
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Investment Management, Inc. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ & Co., Inc.
cc:
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇
▇▇▇, ▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇▇▇▇▇▇
▇▇▇, ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇