Exhibit (d)(xviii)
May 20, 2005
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇,
President and Chief Executive Officer,
Schwab Capital Trust
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: Schwab Target Retirement Funds
Dear ▇▇. ▇▇▇▇▇▇▇▇:
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/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇ /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇,
Senior Vice President and Chief Vice President, Schwab Product
Investment ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ Management
Schwab Investment Management, Inc. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ & Co., Inc.
cc:
▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇-▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇. Hand