EXHIBIT 99 -- (d)(vii)
May 7, 2007
Xxxxxx Xxxxxxxx
President and Chief Executive Officer
Schwab Investments
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Re: Schwab Tax-Free YieldPlus Fund TM -- Investor Share Class
Schwab California Tax-Free YieldPlus Fund TM -- Investor Share Class
Schwab Long-Term Tax-Free Bond Fund XX
Xxxxxx California Long-Term Tax-Free Bond Fund TM
Dear Xx. Xxxxxxxx:
Effective May 7, 2007, this letter will confirm our agreement to limit the net
operating expenses of the following funds as noted in the table below.
FUND NET OPERATING GUARANTEED
EXPENSE LIMIT THROUGH
Schwab Tax-Free YieldPlus Fund -- Investor Shares 49 bps 8/5/07
Schwab California Tax-Free YieldPlus Fund --
Investor Shares 49 bps 8/5/07
Schwab Long-Term Tax-Free Bond Fund 49 bps *
Schwab California Long-Term Tax-Free Bond Fund 49 bps *
*We have agreed to permanently limit these net operating expenses.
Effective August 6, 2007, this will confirm our agreement with the Schwab
California Tax-Free YieldPlus Fund and the Schwab Tax-Free YieldPlus Fund (the
Investor Share Class and Select Share Class will be combined) to limit the net
operating expenses as noted below.
FUND NET OPERATING GUARANTEED
EXPENSE LIMIT THROUGH
Schwab California Tax-Free YieldPlus Fund 49 bps *
Schwab Tax-Free YieldPlus Fund 49 bps *
*We have agreed to permanently limit these net operating expenses.
This letter agreement will be filed with the Securities and Exchange Commission
as part of the fund's next amendment to its registration statement, currently
anticipated to be filed on or about November 15, 2007.
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 Management, Inc. Xxxxxxx Xxxxxx & Co., Inc.
cc:
Xxxxxxx, Xxxxxxx
Xxxxxx, Xxxx
Xxx, Xxxxxxx
Xxxxxxx, Xxxx
Xxxx, Xxxxxxx
Xxxxxx, Xxx
Xxxxxxx, Xxxxx
Xxxxxxxxx, Xxxxx
Xxxxxxx, Xxxxxx
Xxxxxx, Xxx
Xxxxxxx, Xxxxx
