Summary Term Sheet

Instrument:

Mandatory Convertible Notes (the “Notes”)

Issue Price

100%

Coupon:

9.00% p.a., payable annually

Payment Date:

5 business days in Zurich after the EGM

Reference Price:

The average of (i) CHF 57.2 and (ii) the average of the three daily VWAPs on virt-x for the three days prior to the EGM, subject to a minimum of CHF 51.48 and a maximum of CHF 62.92.

Maximum Conversion Price:

117% of the Reference Price

Early Conversion:

The Notes contain market-standard provisions allowing for early conversion at the option of either the Issuer or the holders

Reset Adjustment:

If UBS AG issues in excess of CHF 5 billion Shares, other equity securities or equity-linked securities at a sale price below the Reference Price, or additional mandatory convertible notes or equivalent instruments with a payment rate higher than the Coupon on these Notes or a Maximum Conversion Price below the Maximum Conversion Price of these Notes, during the one year period following the announcement of the issuance of these Notes, the Maximum Conversion Price may be reduced, but to no less than the Minimum Conversion Price.