Item 1

Annual report, Group and Parent Bank accounts for financial year 2010
Reports of the statutory auditors

1.1. Approval of annual report and Group and Parent Bank accounts

A. Motion
The Board of Directors proposes that the report on the financial year 2010 and the Group and Parent Bank accounts for 2010 be approved.

B. Explanation
The “Financial information” section of UBS's annual report 2010 contains the consolidated financial statements of UBS Group and the financial statements of UBS AG, the Parent Bank. Additional information on the strategy, organization and activities of the Group and the business divisions, as well as on risk management and control, may be found in the sections “Strategy, performance and responsibility,” “UBS business divisions and Corporate Center“ and “Risk and treasury management” of the annual report 2010. Information relating to corporate governance as required by the respective SIX Swiss Exchange Directive on Corporate Governance and the Swiss Code of Obligations can be found in the section “Corporate governance and compensation” of the annual report 2010. The annual report 2010 is also available on the Internet at www.ubs.com/investors. Shareholders registered in the share register in Switzerland will receive the abovementioned reporting as per their individual orders. Shareholders in the US who are registered with BNY Mellon Shareowner Services will receive a copy of the review 2010, which contains the most important information relating to UBS AG's performance in 2010.

1.2. Advisory vote on the compensation report 2010

A. Motion
The Board of Directors proposes that the compensation report 2010 be ratified in a non-binding advisory vote.

B. Explanation
The compensation report 2010 is a chapter in the annual report 2010. It explains the governance and principles behind the compensation structure at UBS AG, including the link between pay and performance and the changes implemented for 2010. It also sets out the compensation of the management and Board of Directors in accordance with all applicable laws and regulations and contains information on the total reward principles for all employees, which were re-affirmed on 15 September 2010 by the Board of Directors' Human Resources and Compensation Committee.

The vote on the compensation report 2010 of UBS AG is non-binding and advisory in nature.