Exhibit (d)(xvii)
June 1, 2004
Xxxxxxx X. Xxxx,
President and Chief Executive Officer,
Schwab Capital Trust
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Re: Schwab U.S. MarketMasters Fund - Select Shares
Schwab Balanced MarketMasters Fund - Select Shares
Schwab Small-Cap MarketMasters Fund - Select Shares
Dear Xx. Xxxx:
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.
NET
OPERATING
EXPENSE GUARANTEED
FUND LIMIT THROUGH:
SCHWAB U.S. 1.07% 2/28/06
MARKETMASTERS FUND -
SELECT SHARES
SCHWAB BALANCED 0.95% 2/28/06
MARKETMASTERS FUND -
SELECT SHARES
SCHWAB SMALL-CAP 1.37% 2/28/06
MARKETMASTERS FUND
Sincerely,
/s/ Xxxxxxx X. Xxxx /s/ Xxxxxx Xxxxxxxx
---------------------------- -----------------------
Xxxxxxx X. Xxxx Xxxxxx Xxxxxxxx
Senior Vice President and Chief Senior Vice President, AMPS
Investment Xxxxxxx, Xxxxxxx Xxxxxx Development and Distribution
Investment Management, Inc. Xxxxxxx Xxxxxx & Co., Inc.
cc:
Xxxxxxx Xxxxxxx-Xxxxxx
Xxxxxx Xxxxxxxxx
Xxx-Xxxx Xxxx
Xxx-Xxx Xxx
