AB 2020 Form 10-K

Expense Support and Conditional Reimbursement Agreement will automatically terminate in the event of (a) the termination of the Advisory Agreement, or (b) the Board makes a determination to dissolve or liquidate the Fund. Upon termination of the Expense Support and Conditional Reimbursement Agreement, the Fund will be required to fund any Expense Payments, subject to the aforementioned requirements per the Expense Support and Conditional Reimbursement Agreement that have not been reimbursed by the Fund to the Adviser. As of December 31, 2020, the amount of Expense Payments provided by the Adviser since inception is $4,874,139. The following table reflects the Expense Payments that may be subject to reimbursement pursuant to the Expense Agreement: For the Quarters Ended Amount of Expense Support Amount of Reimbursement Payment Amount of Unreimbursed Expense Support Effective Rate of Distribution per Share (1) Reimbursement Eligibility Expiration Percentage Limit (2) September 30, 2017 $1,002,147 $ 1,002,147 $ — n/a September 30, 2020 1.5% December 31, 2017 1,027,398 1,027,398 — n/a December 31, 2020 1.5% March 31, 2018 503,592 503,592 — n/a March 31, 2021 1.5% June 30, 2018 1,086,482 13,879 1,072,603 4.787% June 30, 2021 1.0% September 30, 2018 462,465 — 462,465 4.715% September 30, 2021 1.0% December 31, 2018 254,742 — 254,742 6.762% December 31, 2021 1.0% March 31, 2019 156,418 — 156,418 5.599% March 31, 2022 1.0% June 30, 2019 259,263 — 259,263 6.057% June 30, 2022 1.0% September 30, 2019 31,875 — 31,875 5.154% September 30, 2022 1.0% December 31, 2019 — — — 6.423% December 31, 2022 1.0% March 31, 2020 89,757 — 89,757 10.17% March 31, 2023 1.0% June 30, 2020 — — — 5.662% June 30, 2023 1.5% September 30, 2020 — — — 6.063% September 30, 2023 1.5% December 31, 2020 — — — 6.266% December 31, 2023 1.5% Total $4,874,139 $ 2,547,016 $ 2,327,123 (1) The effective rate of distribution per share is expressed as a percentage equal to the projected annualized distribution amount as of the end of the applicable period (which is calculated by annualizing the regular quarterly cash distributions per share as of such date without compounding), divided by the Fund’s gross offering price per share as of such date. (2) Represents the actual percentage of Operating Expenses paid by the Fund in any quarter after deducting any Expense Payment, as a percentage of the Fund’s average quarterly gross assets. Expense Reimbursement Agreement and Administration Agreement On September 29, 2017, the Fund and the Administrator entered into the Administration Agreement. Pursuant to the Administration Agreement, the Administrator will perform, or oversee the performance of, the Fund’s required administrative services except those that are provided by the Adviser or an affiliate of the Adviser, and which includes being responsible for the financial records which the Fund is required to maintain and preparing reports to its stockholders and reports filed with the SEC. In addition, the Administrator will assist the Fund in determining and publishing its net asset value, overseeing the preparation and filing of the Fund’s tax returns and the printing and dissemination of reports to the Fund’s stockholders, and generally overseeing the payment of the Fund’s expenses and the performance of administrative and professional services rendered to the Fund by others. Payments under the Administration Agreement will be determined based on arms-length negotiations with the Administrator and will be based upon expenses incurred by the Administrator in performing its obligations under the Administration Agreement. Also on September 29, 2017, the Fund and the Adviser entered into the Expense Reimbursement Agreement. Payments under the Expense Reimbursement Agreement will be based upon the compensation of the Fund’s Chief Financial Officer and Chief Compliance Officer and other staff of the Adviser providing administrative services to the Fund as well as the Fund’s allocable portion of overhead expenses. In accordance with the terms of the Administration Agreement and the Expense Reimbursement Agreement, the Fund expects that overhead and other administrative expenses will be generally allocated between the Fund and the Adviser by reference to the relative time spent by personnel in performing administrative and similar functions on the Fund’s behalf as compared to performing investment advisory or administrative functions on behalf of the Adviser. The Administration Agreement and the Expense Reimbursement Agreement may be terminated by each party thereto without penalty upon 60 days’ written notice to the other party. The Administration Agreement provides that absent negligence or willful misconduct, the Administrator and its directors, officers, employees and agents shall be held harmless from all loss, cost, damage and expense, including reasonable fees and expenses for counsel, incurred by the Administrator in connection with the Administrator’s performance of its duties under the Administration 14