Note 27 Operating Lease Commitments

At 31 December 2006, UBS was obligated under a number of non-cancellable operating leases for premises and equipment used primarily for banking purposes. The significant premises leases usually include renewal options and escalation clauses in line with general office rental market conditions as well as rent adjustments based on price indices. However, the lease agreements do not contain contingent rent payment clauses and purchase options. The leases also do not impose any restrictions on UBS's ability to pay dividends, engage in debt financing transactions or enter into further lease agreements.

The minimum commitments for non-cancellable leases of premises and equipment are presented as follows:

Operating lease contracts include non-cancellable long-term leases of office buildings in most UBS locations. At 31 December 2006, the minimum lease commitments for sixteen office locations each exceeded CHF 100 million. Non-cancellable minimum lease commitments for four office locations in New Jersey, London, Zurich and New York each exceeded CHF 500 million.