Exhibit (d)(iii)
April 29, 2008
▇▇▇▇▇▇▇ ▇. ▇▇▇▇,
President and Chief Executive Officer,
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Portfolios
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: Schwab Annuity Portfolios
Dear ▇▇. ▇▇▇▇:
This letter will confirm our agreement to limit net operating expenses of the
following portfolios, as noted in the table below and described in the
portfolios' registration statement filed with the Securities and Exchange
Commission.
NET OPERATING GUARANTEED
PORTFOLIO EXPENSE LIMIT LIMIT
--------- ------------- -----
SCHWAB MONEY MARKET PORTFOLIO 50 bp expires 4/29/2009
SCHWAB MARKETTRACK GROWTH PORTFOLIO II 50 bp expires 4/29/2009
SCHWAB S&P 500 PORTFOLIO 28 bp expires 4/29/2009
Sincerely,
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇,
Chief Financial Officer, Vice President Schwab Funds
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Investment Management, Inc.
CC: ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇
Zuogang ▇▇▇
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