Document:

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                                                                     Exhibit 4.1

[UBS LOGO]

        Articles of Association
        UBS AG

1 November 2000
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CONTENTS

                  SECTION 1
Page 4            Name, registered office, business object and duration
                  of the Corporation

                  SECTION 2
Page 5            Share capital

                  SECTION 3
                  Corporate bodies
Page 9            A. General Meeting of Shareholders
Page 13           B. Board of Directors
Page 17           C. Group Executive Board
Page 18           D. Statutory and Group Auditors

                  SECTION 4
Page 19           Financial statements and distribution of profit, reserves

                  SECTION 5
Page 20           Notices and jurisdiction

                  SECTION 6
Page 21           Non-cash considerations and contribution in kind

                                                                               3
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SECTION 1
NAME, REGISTERED OFFICE, BUSINESS
OBJECT AND DURATION OF THE CORPORATION

                      ARTICLE 1
NAME AND              A corporation limited by shares under the name of
REGISTERED OFFICE     UBS AG/UBS SA/UBS Ltd. is established with a registered
                      office in Zurich and Basel.

                      ARTICLE 2
BUSINESS OBJECT       1
                      The purpose of the Corporation is the operation of a bank.
                      Its scope of operations extends to all types of banking,
                      financial, advisory, trading and service activities in
                      Switzerland and abroad.
                      2
                      The Corporation may establish branches and representative
                      offices as well as banks, finance companies and other
                      enterprises of any kind in Switzerland and abroad, hold
                      equity interests in these companies, and conduct their
                      management.
                      3
                      The Corporation is authorized to acquire, mortgage and
                      sell real estate and building rights in Switzerland and
                      abroad.

DURATION              ARTICLE 3
                      The duration of the Corporation shall not be limited by
                      time.

4
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SECTION 2
SHARE CAPITAL

                    ARTICLE 4
SHARE CAPITAL       1
                    The share capital of the Corporation is CHF 4,428,931,620
                    (four billion, four hundred and twenty-eight million, nine
                    hundred and thirty-one thousand, six hundred and twenty
                    Swiss francs), divided into 442,893,162 registered shares
                    with a par value of CHF 10 each. The share capital is fully
                    paid up.
                    2
                    Registered shares may be converted into bearer shares and
                    bearer shares into registered shares by resolution of the
                    General Meeting of Shareholders; the Corporation may issue
                    certificates representing multiples of shares.

                    ARTICLE 4a
CONDITIONAL         1
CAPITAL             Warrants related to the 1996 optional dividend of the
                    former Swiss Bank Corporation

                    The share capital will be increased, under exclusion of
                    shareholders' preemptive rights, by a maximum of
                    CHF 8,885,240, corresponding to 888,524 registered
                    shares of CHF 10 par value each (which must be fully
                    paid up) through the exercise of warrants issued in
                    connection with the 1996 optional dividend of the former
                    Swiss Bank Corporation.

                    The subscription ratio, time limits and further details were
                    determined by the Board of Directors of the former Swiss
                    Bank Corporation.

                    The purchase of shares through the exercise of option
                    rights, as well as any subsequent transfer of the shares,
                    are subject to the registration restrictions set out in Art.
                    5 of these Articles of Association.
                    2
                    Employee stock ownership plan of the former Swiss Bank
                    Corporation
                    The share capital will be increased, under exclusion of
                    shareholders' preemptive rights, by a maximum of CHF
                    2,532,620, corresponding to a maximum of 253,262 registered
                    shares of

                                                                               5
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                    CHF 10 par value each (which must be fully paid up) through
                    the exercise of subscription rights granted to employees of
                    the former Swiss Bank Corporation as a means of
                    participation in the Corporation.

                    The purchase of the shares through the exercise of
                    subscription rights within the framework of the employee
                    stock ownership plan, and any subsequent transfer of the
                    shares, are subject to the registration restrictions set
                    out in Art. 5 of these Articles of Association.
                    3
                    Employee stock ownership plan of Paine Webber Group Inc.,
                    New York ("PaineWebber")
                    The share capital will be increased, under exclusion of
                    shareholders' preemptive rights, by a maximum of CHF 170
                    million, corresponding to a maximum of 17 million registered
                    shares of CHF 10 par value each (which must be fully paid
                    up) through the exercise of option rights granted to
                    employees of PaineWebber, which were rolled over according
                    to the merger agreement of 12 July 2000. The subscription
                    ratio, time limits and further details were determined by
                    PaineWebber and taken over by UBS AG. The purchase of shares
                    through the exercise of option rights as well as any
                    subsequent transfer of the shares are subject to the
                    registration restrictions set out in Article 5 of these
                    Articles of Association.

                    ARTICLE 4b
AUTHORIZED          1
CAPITAL             In connection with the acquisition of PaineWebber, the Board
                    of Directors shall increase the share capital, under
                    exclusion of shareholders' preemptive rights, by a maximum
                    of CHF 260 million, corresponding to a maximum of 26 million
                    registered shares of CHF 10 par value each (which must be
                    fully paid up). The Authorized Capital can be utilized until
                    30 June 2001, in part or in whole and on one or more dates.
                    The exchange ratio has been fixed in the merger agreement.
                    The Board of Directors will fix the issue price of the new
                    shares. The new shares will carry dividends from the 4th
                    quarter 2000. They are subject to the registration
                    restrictions set out in Article 5 of the Articles of
                    Association.

6
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                    2
                    The Board of Directors may issue additional portions of the
                    Authorized Capital, as approved under paragraph 1, within
                    three months after the consummation of the merger. These
                    shares will be used to meet delivery obligations vis-a-vis
                    third parties resulting from transactions during the
                    completion of the merger. Shareholders' preemptive rights
                    are excluded in favour of the underwriter of the new shares
                    who guarantees delivery to the rightful third parties.

                    ARTICLE 5
SHARE REGISTER      1
AND NOMINEES        A share register is maintained for the registered shares, in
                    which owners' and usufructuaries' family and given names are
                    entered, with their complete address and nationality (or
                    registered office for legal entities).
                    2
                    If the mailing address of a shareholder changes, the new
                    address must be communicated to the Corporation. As long as
                    this has not been done, all written communications will be
                    sent to the address entered in the share register, this
                    being valid according to the requirements of the law.
                    3
                    Those who acquire registered shares shall be entered in the
                    share register as shareholders with voting rights if they
                    expressly declare that they acquired these registered shares
                    in their own names and for their own account. If the party
                    acquiring the shares is not prepared to provide such a
                    declaration, the Board of Directors may refuse to allow the
                    shares to be entered with voting rights.
                    4
                    The restriction on registration under paragraph 3 above also
                    applies to shares acquired by the exercise of preemptive,
                    option or conversion rights.
                    5
                    The Board of Directors is authorized, after hearing the
                    position of the registered shareholder or nominee affected,
                    to strike the entry of a shareholder with voting rights from

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                    the share register retroactively with effect to the date of
                    the entry, if it was obtained under false pretences. The
                    party affected must be informed of the action immediately.

                    6

                    The Board of Directors formulates general principles
                    relating to the registration of fiduciaries/nominees and
                    issues the necessary regulations to ensure compliance with
                    the above provisions.

                    ARTICLE 6
DEFERRED            1
PRINTING OF         In the case of registered shares, the Corporation may elect
SHARES              not to print and deliver certificates. However, shareholders
                    may at any time request the Corporation to print and
                    deliver certificates free of charge. Particulars are set
                    forth in regulations issued by the Board of Directors.
                    2
                    Uncertificated registered shares may only be transferred by
                    the assignment of all appurtenant rights. The assignment
                    must be reported to the Corporation to be valid. If
                    uncertificated registered shares are held in a custody or
                    portfolio account at a bank, they may only be transferred
                    with the cooperation of that bank. Furthermore, they may
                    only be pledged in favour of that bank, in which case
                    notifying the Corporation is not necessary.

                    ARTICLE 7
EXERCISE OF RIGHTS  1
                    Shares are indivisible. The Corporation recognizes only one
                    representative per share.
                    2
                    Voting rights and associated rights may only be exercised in
                    relation to the Corporation by a party entered in the share
                    register as having the right to vote.

8
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SECTION 3
CORPORATE BODIES
A. GENERAL MEETING OF SHAREHOLDERS

                    ARTICLE 8
AUTHORITY           The General Meeting of Shareholders is the Corporation's
                    supreme corporate body.

                    ARTICLE 9
TYPES OF GENERAL    The Annual General Meeting takes place every year within
MEETINGS            six months after the close of the financial year; the annual
a. ANNUAL GEN-      report and the report of the Auditors must be available for
   ERAL MEETING     inspection by shareholders at the Corporation's registered
                    offices at least twenty days before the meeting.

                    ARTICLE 10
B. EXTRAORDINARY    1
   GENERAL          Extraordinary General Meetings are convened whenever the
   MEETINGS         Board of Directors or the Auditors consider it necessary.
                    2
                    Such a meeting must also be convened if demanded by a
                    resolution of the shareholders in General Meeting or by a
                    written request from one or more shareholders,
                    representing together at least one tenth of the share
                    capital, specifying the items to be included on the agenda
                    and the proposals to be put forward.

                    ARTICLE 11
CONVENING           1
                    The General Meeting shall be called by the Board of Direc-
                    tors, or if need be by the Statutory Auditors, at least
                    twenty days before the meeting is to take place. The
                    meeting is called by publishing a single notice in the
                    publication of record designated by the Corporation. An
                    invitation will be sent to all shareholders registered.
                    2
                    The notice to convene the General Meeting shall specify
                    the agenda with the proposals of the Board of Directors
                    and proposals from shareholders, and in the event of
                    elections the names of the proposed candidates.

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                    ARTICLE 12
PLACING OF ITEMS    1
ON THE AGENDA       Shareholders representing shares with an aggregate par value
                    of one million Swiss francs may submit proposals for matters
                    to be placed on the agenda for consideration by the General
                    Meeting, provided that their proposals are submitted in
                    writing within the deadline published by the Corporation and
                    include the actual motion(s) to be put forward.
                    2
                    No resolutions may be passed concerning matters which have
                    not been duly placed on the agenda, except on a motion put
                    forward at the General Meeting to call an Extraordinary
                    General Meeting or a motion for a special audit to be
                    carried out.

                    ARTICLE 13
CHAIRMANSHIP,       1
TELLERS, MINUTES    The Chairman of the Board of Directors or, if the Chairman
                    cannot attend, a Vice Chairman or another member desig-
                    nated by the Board of Directors, shall preside over the Gen-
                    eral Meeting and appoint a secretary and the necessary
                    tellers.
                    2
                    Minutes are kept of the proceedings and must be signed by
                    the presiding Officer and the Secretary.

                    ARTICLE 14
SHAREHOLDER         1
PROXIES             The Board of Directors issues procedural rules for
                    participation and representation of shareholders at the
                    General Meeting.
                    2
                    A shareholder may only be represented at the General
                    Meeting by his or her legal representative or under a
                    written power of attorney by another shareholder eligible
                    to vote, by a corporate proxy, by the independent proxy
                    or by a custodial proxy.
                    3
                    The presiding Officer decides whether to recognize the
                    power of attorney.

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                    ARTICLE 15
VOTING RIGHT        Each share conveys the right to cast one vote.

                    ARTICLE 16
RESOLUTIONS,        1
ELECTIONS           Resolutions and elections are decided at the General Meeting
                    by an absolute majority of the votes cast, excluding blank
                    and invalid ballots, subject to the compulsory provisions of
                    the law.
                    2
                    A resolution to change Art. 18 of these Articles of
                    Association, to remove one fourth or more of the members of
                    the Board of Directors, or to delete or modify Art. 16
                    paragraph 2 of these Articles of Association, must receive
                    at least two thirds of the votes represented.
                    3
                    Voting on resolutions and elections shall take place with a
                    show of hands, but a written ballot shall be adopted if
                    requested by at least 3% of the votes represented or if the
                    presiding Officer so orders. A written ballot or election
                    may also be conducted electronically.
                    4
                    In the case of written ballots, the presiding Officer may
                    rule that only the ballots of those shareholders shall be
                    collected who choose to abstain or to cast a negative vote,
                    and that all other shares represented at the General Meeting
                    at the time of the vote shall be counted in favour, in order
                    to expedite the counting of the votes.
                    5
                    The presiding Officer may order a vote by show of hands to
                    be repeated in a written ballot if he feels there is any
                    doubt regarding the results. In this case the show of hands
                    vote is deemed not to have taken place.

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                  ARTICLE 17
POWERS            The General Meeting has the following powers:
                  a)  To establish and amend the Articles of Association
                  b)  To elect the members of the Board of Directors, the
                      Statutory Auditors and the Group Auditors
                  c)  To approve the annual report and the consolidated
                      financial statements
                  d)  To approve the annual accounts and to decide upon the
                      appropriation of the net profit shown in the balance
                      sheet
                  e)  To give the members of the Board of Directors and of the
                      Group Executive Board a discharge concerning their
                      administration
                  f)  To take decisions on all matters reserved to the
                      General Meeting by law or by the Articles of
                      Association, or which are placed before it by the
                      Board of Directors.

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CORPORATE BODIES
B. BOARD OF DIRECTORS

                    ARTICLE 18
NUMBER OF BOARD     The Board of Directors shall consist of at least six and no
MEMBERS             more than twelve members.

                    ARTICLE 19
TERM OF OFFICE      1

                    The term of office for members of the Board of Directors is
                    four years, with the interval between two Annual General
                    Meetings being deemed a year for this purpose. The initial
                    term of office for each Director shall be fixed in such a
                    way as to assure that about one fourth of all the members
                    have to be newly elected or re-elected every year.
                    2
                    New Directors elected to replace members who vacate their
                    office before completion of their term shall serve for the
                    remainder of the term of the Directors they are replacing.
                    Members whose term of office has expired are immediately
                    eligible for re-election.

                    ARTICLE 20
ORGANIZATION,       1
CHAIRMAN'S OFFICE   The Board of Directors shall elect a Chairman's Office from
                    among its members. It shall be composed of the Chairman and
                    at least one Vice Chairman.
                    2
                    The Board of Directors shall appoint its secretary, who need
                    not be a member of the Board.

                    ARTICLE 21
CONVENING,          1
PARTICIPATION       The Chairman shall convene the Board of Directors as often
                    as business requires, but at least six times a year.
                    2
                    The Board of Directors shall also be convened if one of its
                    members or the Group Executive Board submits a written
                    request to the Chairman's Office to hold such a meeting.

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                    ARTICLE 22
DECISIONS           1
                    Decisions of the Board of Directors are taken by an
                    absolute majority of the votes cast. In case of a tie, the
                    presiding Officer shall cast the deciding vote.
                    2
                    The number of members who must be present to constitute a
                    quorum, and the modalities for the passing of resolutions
                    shall be laid down by the Board of Directors in the
                    Organization Regulations. No such quorum is required for
                    decisions confirming and amending resolutions relating to
                    capital increases.

                    ARTICLE 23
DUTIES AND          1
POWERS              The Board of Directors has responsibility for the ultimate
                    direction of the Corporation and the supervision and control
                    of its executive management.
                    2
                    The Board of Directors may also take decisions on all
                    matters which are not expressly reserved to the
                    shareholders in General Meeting or to another corporate
                    body by law or by the Articles of Association.

                    ARTICLE 24
ULTIMATE            The ultimate direction of the Corporation comprises in
DIRECTION OF THE    particular:
CORPORATION         a) Preparing of and deciding on proposals to be placed
                       before the General Meeting
                    b) Issuing the regulations necessary for the conduct of
                       business and for the delineation of authority, in
                       particular the Organization Regulations and the
                       regulations governing the Group Internal Audit
                    c) Laying down the principles for the accounting, financial
                       and risk controls and financial planning, in particular
                       the allocation of equity resources and risk capital for
                       business operations

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                    d) Decisions on Group strategy and other matters reserved
                       to the Board of Directors under the Organization Regula-
                       tions
                    e) Appointment and removal of the President (Group Chief
                       Executive Officer) and the members of the Group
                       Executive Board, the members of the Group Managing
                       Board and the head of Group Internal Audit
                    f) Decisions on increasing the share capital, to the
                       extent this falls within the authority of the Board
                       of Directors (Art. 651 paragraph 4 of the Swiss Code
                       of Obligations), on the report concerning an increase
                       in capital (Art. 652e of the Swiss Code of
                       Obligations) and on the ascertainment of capital
                       increases and the corresponding amendments to the
                       Articles of Association.

                    ARTICLE 25
SUPERVISION,        Supervision and control of the business management comprises
CONTROL             in particular the following:
                    a) Review of the annual report, consolidated and parent
                       company financial statements as well as quarterly and
                       half-year financial statements
                    b) Acceptance of regular reports covering the course of
                       business and the position of the Group, the status
                       and development of country, counter-party and market
                       risks and the extent to which equity and risk capital
                       are tied up due to business operations
                    c) Consideration of reports prepared by the Statutory
                       and Group Auditors concerning the annual financial
                       statements.

                    ARTICLE 26
DELEGATION,         The Board of Directors may delegate part of its authority to
ORGANIZATION        one or more of its members subject to Arts. 24 and 25. The
REGULATIONS         allocation of authority and functions shall be defined in
                    the Organization Regulations.

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                    ARTICLE 27
SIGNATURES,         1
SEAL, EXCEPTIONAL   In accordance with the Articles of Association the company's
MEASURES            external representation and the manner and form of
                    signature shall be defined in the Organization
                    Regulations.
                    2
                    Signing in the name of the company requires two authorized
                    signatures to be binding. Forms and other written documents
                    produced in large quantities in the course of daily business
                    may be distributed with only one or without signature. Such
                    exceptions to the joint signature principle shall be made
                    known in a suitable fashion.
                    3
                    The Board of Directors and those authorized by it to sign
                    on behalf of the Corporation may empower individual
                    persons to execute specific business and legal
                    transactions.
                    4
                    For countries in which law or custom prescribes the use
                    of seals on important or formal documents, a seal may be
                    added to the signature. The Board of Directors shall
                    designate such seals and issue regulations for their
                    use.
                    5
                    To safeguard important interests of the Bank, the Board
                    of Directors, or persons acting on the Board's
                    instructions, may take exceptional measures in emergency
                    situations arising as a result of extraordinary political
                    developments.

                    ARTICLE 28
REMUNERATION        The Board of Directors shall determine the remuneration
                    of its members.

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CORPORATE BODIES
C. GROUP EXECUTIVE BOARD

                    ARTICLE 29
ORGANIZATION        The Group Executive Board is composed of the Group Chief
                    Executive Officer, the Chief Financial Officer and at least
                    three other members with important group functions.

                    ARTICLE 30
FUNCTIONS,          1
AUTHORITIES         The Group Executive Board is responsible for the management
                    of the Group. It is the supreme executive body as defined
                    by the Swiss Federal Law on Banks and Savings Banks. It
                    implements the Group strategy decided by the Board of
                    Directors and ensures the execution of the decisions of the
                    Board of Directors and the Chairman's Office. It is
                    responsible for the Group's results.

                    2
                    The Group Executive Board has the following principal
                    responsibilities:

                    a) Preparing and proposing Group strategy and the funda-
                       mental policy decisions necessary for their
                       implementation, the Organization Regulations and the
                       basic organizational structure of the Group
                    b) Exercising such functions and authorities as shall be
                       assigned to it by the Organization Regulations
                    c) Regularly informing the Board of Directors, as prescribed
                       by Art. 25, item b of these Articles of Association, and
                       submitting the documents in accordance with Art. 25,
                       items a and c of these Articles of Association
                    3
                    The functions and authorities of the Group Executive Board
                    and other management units designated by the Board of
                    Directors are to be defined by the Organization Regulations.

                                                                              17
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CORPORATE BODIES
D. STATUTORY AND GROUP AUDITORS

                    ARTICLE 31
TERM OF OFFICE,     1
AUTHORITY AND       An auditing company is to be appointed as Statutory and
DUTIES              Group Auditors.
                    2
                    The shareholders in General Meeting shall elect the
                    Statutory and Group Auditors for a term of one year. The
                    rights and duties of the Statutory and Group Auditors are
                    determined by the provisions of the law.
                    3
                    The General Meeting may appoint Special Auditors for a
                    term of three years, who provide the attestations required
                    for capital increases.

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SECTION 4
FINANCIAL STATEMENTS AND
APPROPRIATION OF PROFIT, RESERVES

                    ARTICLE 32
FINANCIAL YEAR      The consolidated and parent company financial accounts are
                    closed on December 31 of each year.

                    ARTICLE 33
APPROPRIATION OF    1
DISPOSABLE PROFIT   At least 5% of the profit for the year is allocated to the
                    general statutory reserve until such time as said reserve
                    amounts to 20% of the share capital.
                    2
                    The remaining profit is, subject to the provisions of the
                    Swiss Code of Obligations and of the Federal Banking law,
                    at the disposal of the shareholders in General Meeting
                    who may also use it for the formation of free or special
                    reserves.

                    ARTICLE 34
RESERVES            The shareholders in General Meeting determine the
                    utilization of the general reserve in accordance with
                    the legal provisions acting upon the recommendations of
                    the Board of Directors.

                                                                              19
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SECTION 5
NOTICES AND JURISDICTION

                    ARTICLE 35
OFFICIAL PUBLICA-   Public notices appear in the Swiss official commercial
TION MEDIA          gazette (in French <<Feuille Officielle Suisse du
                    Commerce>>, or German <<Schweizerisches Handelsamtsblatt>>).
                    The Board of Directors may designate other publications as
                    well.

                    ARTICLE 36
JURISDICTION        Jurisdiction for any disputes arising out of the corporate
                    relationship shall be at both the registered offices of the
                    Corporation, with the exception of legal actions in
                    connection with the contestation or nullity of decisions of
                    the shareholders' meeting or the nullity of Board of
                    Directors' decisions, where jurisdiction shall exclusively
                    be with the courts of Zurich.

20
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SECTION 6
NON-CASH CONSIDERATIONS
AND CONTRIBUTION IN KIND

                    ARTICLE 37
NON-CASH            1
CONSIDERATIONS      The Corporation acquires Schweizerische Bankgesellschaft
                    (SBG) in Zurich by merger through the capital increase of
                    April 30/May 19, 1998. Assets of CHF 426,820,619,609.52
                    and liabilities of CHF 408,302,595,203.66 pursuant to the
                    merger balance sheet of September 30, 1997 shall be
                    transferred by universal succession to the Corporation; the
                    amount of the capital increase has been paid in accordance
                    with the merger agreement. The shareholders of the company
                    acquired receive 128,750,000 fully paid-up registered shares
                    of the acquiring company each with a par value of CHF 20.
                    2
                    The Corporation acquires Schweizerischer Bankverein (SBV)
                    in Basel by merger through the capital increase of April
                    29/May 18, 1998. Assets of CHF 352,252,889,332.69 and
                    liabilities of CHF 338,770,039,294.46 pursuant to the
                    merger balance sheet of September 30, 1997 shall be
                    transferred by universal succession to the Corporation; the
                    amount of the capital increase has been paid in accordance
                    with the merger agreement. The shareholders of the company
                    acquired receive 85,623,491 fully paid-up registered shares
                    of the acquiring company each with a par value of CHF 20.

                    ARTICLE 38
CONTRIBUTION        The Corporation, in connection with the capital increase of
IN KIND             1 November 2000, is acquiring the totality of the shares of
                    Paine Webber Group Inc. (New York, N.Y., USA) from existing
                    shareholders of this listed company through the
                    Corporation's wholly owned subsidiary UBS Americas Inc.
                    (Wilmington, Delaware, USA) by way of a triangular merger
                    under the laws of the State of Delaware (USA). Under the
                    terms of the merger agreement of 12 July 2000, the total
                    consideration for these shares will take the form of a cash
                    component of not more than USD 6,350,000,000 plus a share
                    component of not more than 42,800,000 shares of UBS AG,
                    i.e. (assuming an exchange rate of CHF/USD 1.80 and a price
                    of CHF 250 per UBS share)

                                                                              21
<PAGE>   21
                    CHF 22,130,000,000, and of not less than USD 5,520,000,000
                    plus not less than 37,150,000 shares of UBS AG, i.e. (based
                    on the foregoing assumptions) CHF 19,223,500,000, this
                    including the 12,000,000 shares resulting from the capital
                    increase of 1 November 2000.

                    UBS AG
                    For the Board of Directors:

                    Alex Krauer                   Alberto Togni
                    Chairman                      Vice Chairman

22
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[UBS LOGO]

UBS AG
Board of Directors
P.O. Box, CH-8098 Zurich<PAGE>   1
                                                                     EXHIBIT 4.2

ab

   ORGANIZATION REGULATIONS
   OF UBS AG

   Based on art. 716b of the Swiss Code of Obligations and art. 24 of the
   Articles of Association of UBS AG, the Board of Directors has issued the
   following Organization Regulations on September 14, 2000.

--------------------------------------------------------------------------------

   The "Appendix" (Authorities) is an integrated part of these Organization
   Regulations
<PAGE>   2
I. THE BOARD OF DIRECTORS

Art. 1  Constitution

(1)The Board of Directors constitutes itself in the last meeting preceding the
Annual General Meeting of Shareholders (subject to approval of elections at the
AGM).

(2)The Board elects its Chairman and at least one Vice Chairman, and appoints
its Secretary.

Art. 2  Meetings and invitations to convene

(1)The Board meets as prescribed by art. 21 of the Articles of Association.

(2)Except in urgent cases the invitations to the meeting, together with the
agenda, are sent to the directors at least one week before the date of the
meeting.

(3)As a rule, the members of the Group Executive Board participate in board
meetings in an advisory capacity. The presiding director decides where
exceptions will be made. Together with the President of the Group Executive
Board (President), the presiding director determines whether other persons may
attend.

Art. 3  Decisions and minutes

The Board takes its decisions as prescribed by art. 22 of the Articles of
Association. As an exception, directors may participate in meetings via
telephone or video. They are counted as present in such cases.

(2)In urgent cases decisions may be taken via circular mail. Such decisions are
only valid when all directors are sent the text of the resolution, when more
than two thirds of the directors cast a vote, and when the absolute majority of
directors voting approve the resolution submitted to them. Any dissenting
director is entitled to request a meeting to be convened. In such a case the
decision via circular mail is not valid.

(3)Minutes are kept of decisions taken by the Board and are signed by the
presiding director and the Secretary. They shall be made available for
inspection before the next board meeting and shall be approved at this meeting.

(4)Any member of the Board may demand that his/her dissenting vote be noted in
the minutes. Directors are any time entitled to examine the minutes.

Art. 4  Functions and authorities

(1)The functions and authorities of the Board are based on the provisions
contained in arts. 23 - 28 of the Articles of Association. All details are
governed in the "Appendix".

Art. 5  Right to information and examination

(1)At a meeting, any member of the Board is entitled to demand information on
any matter relating to the Group regardless of what is on the agenda. The other
directors and any members of the Group Executive Board that are present shall
provide such information to the best of their knowledge.

(2)If a director has the matter on which he or she is seeking information placed
on the agenda, the Chairman's Office shall arrange through the President of the
Group Executive Board for a knowledgeable member of staff to provide
comprehensive information on this matter.
<PAGE>   3
(3)Where it is imperative for compliance with his/her duties any director may
request information outside of meetings from members of the Group Executive
Board concerning the Group's business development. Requests to examine books and
files must be made in writing to the Chairman's Office. The director who makes
such a request must examine the documents in person. Where the Chairman's Office
rejects a request to examine books and files, the director making the request
may submit it to the Board.

Art. 6  Term of office, end of active service

(1)A director who has reached the age of seventy automatically retires from the
Board with effect from the next Annual General Meeting of Shareholders.

(2)A director who has ended his or her active involvement in the company or
organization of which he or she used to be a representative shall offer to
vacate his or her directorship. The Board decides whether a resignation is to be
submitted or whether the director may exercise the mandate until completion of
his/her term of office.

II. THE CHAIRMAN'S OFFICE

Art. 7  Composition

The Board of Directors establishes a Chairman's Office, composed of the Chairman
and at least one Vice Chairman.

Art. 8  Meetings

(1)As a rule the Chairman's Office meets four to six times a year to deal with
the issues of its authority. The President participates at these meetings in an
advisory capacity. Other members of the Group Executive Board may be invited to
participate for special purposes.

(2)The Chairman and/or the full-time Vice Chairman participate in the meetings
of the Group Executive Board. Such participation serves to ensure that the Board
is apprised of current developments and permits the exercise of its supervisory
and control functions. The Chairman and the full-time Vice Chairman participate
in these meetings in an advisory capacity.

Art. 9  Decisions and minutes

(1)The presence of the Chairman and one Vice Chairman is required for
resolutions to be passed at meetings of the Chairman's Office.

(2)Minutes are kept on the resolutions passed and are signed by the Chairman and
the Secretary. The minutes are sent to the members of the Chairman's Office and
the President. They are then made available for perusal at the following Board
of Directors' meeting.

Art. 10  Functions and authorities

(1)The authorities of the Chairman's Office are governed in detail in the
"Appendix". In addition it has responsibility for preparing proposals to be
submitted to the Board of Directors and for monitoring the implementation of the
Board of Directors' decisions.

(2)As an exception, urgent decisions falling within the authority of the Board
of Directors may be taken by the Chairman's Office. Such decisions are to be
brought to the attention of the Board of Directors at
<PAGE>   4
its next meeting. This regulation shall not apply to such functions and duties
of the Board of Directors which, pursuant to art. 716a of the Swiss Code of
Obligations, are non-transferable and inalienable.

(3)The credit approval authorities of the Chairman's Office can be delegated to
the full-time Vice Chairman who brings his decisions to the next meeting of the
Chairman's Office for information. Extraordinary cases will be submitted to
circular approval by all members of the Chairman's Office.

Art. 11  The Chairman's Office as Audit Supervisory Board

(1)The Chairman's Office performs the duties as Audit Supervisory Board as
defined in the Federal Banking Commission's circular letter on internal auditing
dated 14 December 1995. In this function, the Chairman's Office shall convene
four times a year for special meetings with the Head of Group Internal Audit. In
at least one of the meetings the representatives of the External Auditors shall
participate.

(2)At these meetings, the objectives for the year and the activity report of the
Head of Group Internal Audit will be discussed. The meetings also serve to
discuss matters of general policy and to inform the Chairman's Office of
important findings made by Group Internal Audit.

Art. 12  The Chairman's Office as Compensation Committee

The Chairman's Office performs the duties as Compensation Committee for the
Group Executive Board and the Group Managing Board. Its authorities are governed
in detail in the "Appendix".

III. THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

Art. 13  Functions and authorities

The Board of Directors appoints an Audit Committee of three of its part-time
members to control the functional quality and the performance adequacy of the
Group and Statutory Auditors as well as their interaction with Group Internal
Audit. Authorities, duties and procedures are governed in a special regulation
issued by the Board of Directors.

IV. THE CHAIRMAN OF THE BOARD OF DIRECTORS

Art. 14  Functions

(1)The Chairman - or in his/her absence one of the Vice Chairmen - presides over
the meetings of the Board of Directors and the General Meeting of Shareholders.

(2)The Chairman of the Board of Directors, together with the full-time Vice
Chairman, exercises ongoing supervision over the Group Executive Board on behalf
of the Board of Directors. The Chairman and the full-time Vice Chairman are
responsible for providing information to the Chairman's Office and the Board of
Directors that is relevant to their function.

(3)Group Internal Audit directly reports to the Chairman of the Board of
Directors.

Art. 15  Authorities
<PAGE>   5
The Chairman of the Board of Directors and the full-time Vice Chairman may
demand information about any matters relating to the Group, and examine reports,
proposals and minutes of meetings of the Group Executive Board, the Functional
Areas of the Corporate Center, the Business Groups and the Divisions.

V. THE GROUP EXECUTIVE BOARD

Art. 16  Composition

The Group Executive Board consists of its President (Group Chief Executive
Officer), the Chief Financial Officer and at least three other members with
important Group functions.

Art. 17  Meetings, decisions, minutes

(1)As a rule, the Group Executive Board meets at least once every month.
Extraordinary meetings will be held as required or at the request of a member.

(2)A quorum is constituted when at least three members of the Group Executive
Board are present, or can be reached for discussion and voting. For voting on
matters of fundamental importance, however, two thirds of the members, including
the member responsible for the area concerned, must attend.

(3)Decisions are taken by the absolute majority of the members present. In case
of a tie the presiding officer has the casting vote.

(4)Minutes are kept of decisions taken by the Group Executive Board and are
signed by the presiding officer and the recording secretary. They are taken as
approved if no comment is made on them in the next meeting. They shall be sent
to the members of the Chairman's Office and the Group Executive Board.

Art. 18  Functions and authorities

(1)The Group Executive Board is the Group's supreme executive body within the
meaning of the Swiss Banking Law. It ensures cooperation and unity within the
Group across Business Group lines and is responsible for the Group's
performance.

(2)The authorities of the Group Executive Board are governed in detail in the
"Appendix", based on article 30 of the Articles of Association. The Group
Executive Board prepares the proposals which have to be submitted to the
Chairman's Office and the Board of Directors for approval and supports them in
their decision making process. It regularly informs the Board of Directors on
the Group's business development.

(3)The Group Executive Board may wholly or partially delegate approval
authorities to one of its members.

Art. 19  The Group Executive Board as Risk Council

The Group Executive Board assumes the responsibilities of a Risk Council. It is
responsible for implementing the Risk Management and Control Principles, for
approving the core risk policies as proposed by the Group Chief Risk Officer
and/or the Group Chief Credit Officer, for allocating risk limits to the
Business Groups within the overall approved framework and for managing the risk
profile of the Bank as a whole.

<PAGE>   6
Art. 20  The President

(1)The President is responsible for the overall executive management of the
Group; he heads the Group Executive Board and presides over its meetings.

(2)He ensures that matters relating to the Group are dealt with, supervises the
management of the Business Groups and ensures that the Business Groups work
together. He is responsible for ensuring that decisions are taken in a timely
fashion and for supervising their implementation.

(3)He is responsible for Human Resources, Management Development and Corporate
Communications and - in consultation with the Chairman of the Board of Directors
- for the image of the Group as a whole.

(4)He ensures that the Chairman's Office and the Board of Directors are informed
in a timely and appropriate manner.

(5)The President has an all-encompassing right to information and examination
regarding all matters handled by the Corporate Center and by the Business
Groups. He has veto power over any decisions taken by any management body. A
veto has the effect of suspending the decision until the matter is decided by
the Group Executive Board.

Art. 21  The Chief Financial Officer

The Group Chief Financial Officer is responsible for the Group's financial
management, for the implementation of group-wide independent risk control and
for group-wide controlling processes. The Group Chief Risk Officer and the Group
Chief Credit Officer have group-wide responsibility for the Risk functions. The
Group Controller has group-wide responsibility for financial control functions.

Art. 22  Special committees

Matters of common interest to the Group are dealt with in special committees
presided over by the President, the CFO or another member of Senior Management
appointed to this function by the Group Executive Board.

VI. THE BUSINESS GROUPS

Art. 23  Organization of business activities

(1)The Group's business activities are organized into Business Groups, which in
turn are broken down into Divisions and/or Business Areas.

(2)The structure and assignment of activities are reflected in the basic
organizational structure of the Group. Details about responsibilities, functions
and authorities are governed in the "Appendix" to these Organization Regulations
and in the Business Group Regulations.

Art. 24  The CEO of the Business Group

(1)The CEO of the Business Group is responsible for the implementation of the
business strategy within his Business Group and for the implementation of the
decisions taken by the Board of Directors, the Chairman's Office and the Group
Executive Board.

(2)He has overall responsibility for the Business Group and its management and
is accountable for its results.
<PAGE>   7
Art. 25  Responsibilities

(1)The Business Groups are responsible for the management of the business, of
resources, logistics and all risks within their respective area of
responsibility. At shared locations the Group Executive Board assigns all or
part of logistics and resources responsibilities to the most suitable Business
Group.

(2)Management structure, responsibilities and accountability in the areas of
risk management, reporting, communication, internal and external information,
human resources, legal and compliance issues are governed in the Business Group
Regulations, based strictly on the principles established by the Group.

VII. THE CORPORATE CENTER

Art. 26  Functions and organization

(1)The Corporate Center works with the Business Groups to ensure long-term
maximization of shareholder value.

(2)It assumes responsibility in the financial management of the Group, in
maintaining an appropriate balance between risk and returns, in managing
effective communication with all stakeholders, in positioning the Group as
employer of choice and in coordinating activities critical for the Group's
reputation.

Art. 27  Functional directive and controlling authority

The heads of the Functional Areas of the Corporate Center have functional
directive and functional controlling authority throughout the Group.

VIII. REGION AND COUNTRY HEADS REPRESENTATIVES AND PERMANENT ADVISORS

Art. 28  Appointment

Upon recommendation of the Business Groups, the Group Executive Board appoints
Region and Country Heads, Representatives who assume functions for more than one
Business Group, as well as the permanent advisors of the Group.

IX. GROUP INTERNAL AUDIT

Art. 29  Organization

(1)Group Internal Audit performs the Group's internal audits.

(2)The guidelines for the activities of Group Internal Audit are contained in a
special set of regulations.

(3)The Chairman's Office may order special audits to be conducted. Individual
members of the Board of Directors may submit requests for such audits to the
Chairman's Office. If there is any doubt about whether such a request is
justified, the question is submitted to the Board of Directors by the presiding
director.
<PAGE>   8
(4)The members of the Group Executive Board, with the agreement of the Chairman
of the Board of Directors, may instruct Group Internal Audit to conduct special
audits.

Art. 30  Functions and authorities

(1)Group Internal Audit monitors compliance with the legal and regulatory
requirements and with the provisions of the Articles of Association, as well as
with internal directives and guidelines within the organizational units of the
parent company and the group companies. In doing so, it specifically verifies or
assesses whether the internal controls are commensurate with the risks and are
working effectively, whether activities within the Group are being conducted and
recorded properly, correctly and fully, and whether the organization of
operations, including information technology, is efficient and the information
is reliable.

(2)Group Internal Audit possesses unrestricted auditing rights within the parent
company and the group companies; it has access at all times to all accounts,
books and records. It must be provided with all information and data needed to
fulfill its auditing duties.

Art. 31  Reports

(1)Group Internal Audit is independent in its reporting and is not subject to
any instructions.

(2)Group Internal Audit addresses its reports with major issues ultimately to
the Chairman of the Board of Directors. The procedure employed for this and the
list of other recipients of its audit reports are described in the regulations
governing Group Internal Audit.

(3)Audit issues of less significant importance are brought to the attention of
the appropriate level of management.

(4)The Chairman of the Board of Directors and the President shall inform the
Chairman's Office and the Board of Directors in an appropriate manner of any
findings of Group Internal Audit which raise questions of fundamental importance
or reveal serious weaknesses.

(5)The Chairman of the Board of Directors shall also inform the Board of
Directors of the results of special audits performed at the request of
individual board members.

(6)The members of the Board of Directors and of the Group Executive Board shall
receive the annual activity report of the Head of Group Internal Audit for
review. This report is to be discussed at a meeting of the Board of Directors.

X. SIGNATURES

Art. 32  Authority to sign for the parent company

(1)The following persons are authorized to sign, jointly with another authorized
signatory:

a)   The members of the Chairman's Office

b)   The members of the Group Executive Board

c)   The members of the Group Managing Board

d)   Managing Directors, Executive Directors and Directors (Senior Management)

e)   Associate Directors, in Division Private and Corporate Clients
     Chefprokuristen, Prokuristen and Handlungsbevollmachtigte.

(2)The authority to sign encompasses:
<PAGE>   9
a)   all branches of UBS AG worldwide for the members of the Chairman's
     Office, the Group Executive Board and the Group Managing Board

b)   the respective Business Area and jurisdiction for all other signatories.

(3)The Group Executive Board may extend the authority to sign for individual
signatories beyond their respective jurisdiction. The Business Groups may extend
the authority to sign for individual signatories beyond their respective
Business Area.

(4)Members of Senior Management may, in individual cases, authorize an internal
or external person to bind the parent company with legal effect by his or her
sole signature for acts which can only be performed outside the business
premises, such as the signing of contracts. The authorization is only possible
for matters on which decisions have been made by the competent body of the
parent company.

(5)The Group Executive Board may rule that forms and other written documents
produced in large quantities in the course of daily business may be distributed
with only one or without signature. Such exceptions to the joint signature
principle shall be made known in a suitable fashion giving details of the
relevant maximum authorized amounts.

Art. 33  Form of signature

All authorized signatories sign by adding their signature to the Corporation's
name.

XI. GENERAL PROVISIONS

Art. 34  Abstention

In the decision making process, members of the Board of Directors, the Group
Executive Board, the Business Group Boards and executive managements are obliged
to abstain from discussions and decisions on transactions or other matters
involving a potential conflict of interest. Rules for abstention in individual
transactions will be established by the Business Groups.

XII. AMENDMENTS

Art. 35  Amendments

The members of the Board of Directors must be notified in writing of any
proposals for the amendment of the Organization Regulations at least one week
before the proposals are to be discussed.

XIII. ENTRY INTO FORCE, IMPLEMENTING PROVISIONS

Art. 36  Entry into force, implementing provisions

(1)These Organization Regulations entered into force on 14 September 2000.

(2)The Group Executive Board shall enact rules for the implementation of these
regulations if deemed necessary.
<PAGE>   10
UBS AG

Alex Krauer                                              Alberto Togni
Chairman of the                                          Vice Chairman of the
Board of Directors                                       Board of Directors
<PAGE>   11
ab

APPENDIX TO THE ORGANIZATION REGULATIONS
AUTHORITIES

This "Appendix" is an integrated part of the Organization Regulations.
It has been approved by the Board of Directors of UBS AG on September 14, 2000
<PAGE>   12
                                                                               2

TABLE OF CONTENTS

1. Organization

2. Strategy

3. Planning and Reporting

4. Capitalization and Funding

5. Risk Management and Control

6. Personnel and Compensation

7. Participations / Investments

8. Group Companies

9. Auditing

10. Other Matters

ABBREVIATIONS

A               Approval
AD              Associate Director
AGM             Annual General Meeting of Shareholders
AoA             Articles of Association
BoD             Board of Directors
CRE             Corporate Real Estate
D               Director
ED              Executive Director
GCCO            Group Chief Credit Officer
GCFO            Group Chief Financial Officer
GCRO            Group Chief Risk Officer
GEB             Group Executive Board
GC              Group Companies
GMB             Group Managing Board
I               Information
MD              Managing Director
OR              Organization Regulations
P               Proposal
PCE             Potential Credit Exposure
VaR             Value at Risk
X               Authority
<PAGE>   13
                                                                               3

1. ORGANIZATION

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>
1.1. LEGAL STRUCTURE

1.1.1. Articles of Association        A*                                                                   *) to be submitted
                                                                                                           to the AGM for approval
1.1.2. Organization Regulations
       and Appendix delineating
       authorities                    A                           P

1.1.3. Business Group
     Regulations  and
     Regulations of Corporate
     Center                                         A             P             P              P

1.1.4. Business Regulations of
       Divisions and Business
       Units / Business Areas                                     A             P              P

1.2. ORGANIZATIONAL STRUCTURE

1.2.1. Election of the
       Chairman's Office and of
       the Secretary to the Board
       of Directors                   X

1.2.2. Election of the Chairman
       and the members of the
       Audit Committee                A             P
</TABLE>
<PAGE>   14
                                                                               4

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>
1.2.3. Basic organizational                                                                              Definition of
       structure of the Group         A                           P                                    basic structure
                                                                                                         (Business Groups)
1.2.4. Organizational structure
       of the Business Groups and
       the Corporate Center                                       A             P              P

1.2.5. Special Committees for
       Group purposes
       Definition of mission and
       appointment of members                                     A             P              P

1.2.6. Other structures                                                         A              A
</TABLE>
<PAGE>   15
                                                                               5

2. STRATEGY

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>
2.1. GROUP STRATEGY                     A                           P

2.2. BUSINESS GROUP AND
    CORPORATE CENTER STRATEGIES                                     A             P              P
</TABLE>
<PAGE>   16
                                                                               6

3. PLANNING AND REPORTING

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>
3.1. PLANNING

3.1.1. Mid-term financial and
       business planning,
       definition of targets and
       Terms of Reference             I                           A            P: CFO          P

3.1.2. Annual budget of the Group     A                           P

3.2. REPORTING

3.2.1. Consolidated and parent
       company annual financial
       statements                     A                           P

3.2.2. Annual Report
       Concept, general guidelines                  A             P
       Editing                                                    A            P:CFO
       Sign-off                       A                           P

3.2.3. Half-year and quarterly
       financial statements           A                           P

3.2.4. Half-year and quarterly
       reports                        I                           A            P: CFO

3.2.5. Monthly financial
       statements                     I                           A            P: CFO

3.2.6. Quarterly Risk Report          A                           P
</TABLE>
<PAGE>   17
                                                                               7

4. CAPITALIZATION AND FUNDING

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>
4.1. SHARE CAPITAL AND UBS
     SHARES

4.1.1. Increase, decrease of
       share capital, creation of                                                                          *) to be submitted
       conditional and authorized                                                                          to the  AGM for approval
       capital                        A*                          P                                        (amendment of AoA)

4.1.2. Use of authorized and
       conditional capital
       (through rights issues,
       employee share schemes etc.)   A                           P

4.1.3. Listing and delisting of
       UBS shares                     A                           P

4.2. TREASURY SHARES

4.2.1. Treasury stock policy          A                           P

4.2.2. Sale, purchase of own
       shares as treasury stock
       (incl. derivatives)                                        I            CEO and CFO
</TABLE>
<PAGE>   18
                                                                               8
<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>
4.3. REGULATORY CAPITAL

4.3.1. Issue of tier 1 capital
       (other than common stock
       and Bearer Participation
       Certificates) issued by the
       parent company                                             A           P: CFO

4.3.2. Repurchase and redemption
       of tier 1 capital (other
       than common stock and
       Bearer Participation
       Certificates) issued by the
       parent company)                                                         CFO

4.3.3. Issue, repurchase and
       redemption of tier 2 and 3
       capital                                                                 CFO

4.4. ALLOCATION OF CAPITAL

4.4.1. Capital determination and
       allocation method                                                       CFO

4.4.2. Allocation to Business
       Groups                                                     A           P: CFO

4.4.3. Allocation within
       Business Groups                                                        I: CFO           A           Proposal by
                                                                                                           Business Groups /
                                                                                                           Divisions
4.5. INTERNAL LEGAL LENDING
      LIMIT

4.5.1. Setting of legal lending
       limit (Group and parent
       bank)                                                      A           P: CFO/CCO

4.5.2. Setting of available
       excess capital (Group)                                     A           P: CFO/CCO
</TABLE>
<PAGE>   19
                                                                               9

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>
4.5.3. Release of available
       excess capital (Group)                       I             A           P: CFO/CCO

4.6. DEBT ISSUES

4.6.1.Conditions for debt
      capital market issues
      (annual issue volumes,
      guarantees)                     I                           A           P: CFO

4.6.2. Management and
       coordination of the Group's
       funding activities                                                      CFO

4. 6.3. Establishment and
        structural changes (e.g.
        increase) of debt programs
        and CD-/CP-programs
        (including eventual parent
        guarantee)                                                             CFO

4.6.4. Issue, repurchase, early                                                                            Raising of debt through
       redemption of notes, bonds                                                                          the parent company or
       and other securities with                                                                           other Group companies.
       similar characteristics(1) on                                                                       In case of issues
       a stand-alone basis as well                                                                         through subsidiaries the
       as under debt programs                                                  CFO                         authority also covers an
                                                                                                           eventual parent guarantee

4.6.5. Issue of asset backed
       securities through group
       companies                                                      A       P: CFO
</TABLE>

--------
(1) Including e.g. notes and bonds with conversion rights or warrants
attached on already issued UBS shares or on securities of other companies; notes
and bonds linked (coupon and/or redemption amount variable) to the performance
of an index, a stock, a currency or the credit of a company ("CLN") etc.
<PAGE>   20
                                                                              10

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>           <C>

4.7. GROUP FOREIGN EXCHANGE
    MANAGEMENT

4.7.1. Group foreign exchange
       policy (non-trading FX
       exposures)                     I                           A           P: CFO

4.7.2. Setting limits                                             A           P: CFO

4.7.3. Management and reporting                                                CFO

4.8. GROUP LIQUIDITY MANAGEMENT

4.8.1. Group liquidity policy         I                           A           P: CFO

4.8.2. Setting limits                                             A           P: CFO

4.8.3. Management and reporting                                                CFO

4.9. GROUP INTEREST RATE
     MANAGEMENT

4.9.1. Group interest rate
       policy (non-trading
       interest rate exposures)       I                           A           P: CFO

4.9.2. Setting limits                                             A           P: CFO

4.9.3. Management and reporting                                                CFO
</TABLE>
<PAGE>   21
                                                                              11

5. RISK MANAGEMENT AND CONTROL

<TABLE>
<CAPTION>
                                     BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>             <C>          <C>            <C>        <C>

5.1. RISK PHILOSOPHY AND RISK
     GUIDELINES

5.1.1. Risk management and
       control principles             A                           P

5.1.2. Risk capacity                  A                           P                                      Applies for
                                                                                                         quantifiable risks
                                                                                                         and is expressed
                                                                                                         as stress loss
                                                                                                         limits

5.2. RISK MANAGEMENT AND CONTROL

5.2.1. Implementation of risk
       management and control
       principles                                                 X

5.2.2. Risk measurement methods                                   A          P: CRO/CCO

5.2.3. Risk identification                                                    CRO / CCO

5.2.4. Risk reductions                                            A          P: CRO/CCO

5.2.5. Development and
       concentration of risks
       -  monitoring                                                          CRO/CCO
       -  reporting                   I                           X
</TABLE>
<PAGE>   22
                                                                              12

<TABLE>
<CAPTION>
All amounts in CHF millions          BoD         Chairman's       GEB         Corporate      Business      Remarks
                                                 Office                       Center         Groups
<S>                                  <C>         <C>              <C>         <C>          <C>           <C>
5.3.  MARKET RISK MANAGEMENT AND
     CONTROL

5.3.1. Definition and allocation                                                                           e.g. VaR limits,
     of limits to Business Groups                                 A            P: CRO                      Risk Factor Stress
                                                                                                           limit
5.3.2. Allocation of specific                                                                              e.g. operational
     limits to Business Groups                                                  CRO            P           limits, stop-loss,
                                                                                                           proprietary etc.

5.3.3. Setting Policy for
     underwriting debt and
     equity instruments
     (including levels of
     authority)                       I             A             P

5.3.4. Issuer risk policy             I             A             P                                        Including the setting
                                                                                                           of standard limits per
                                                                                                           issuer for liquid
                                                                                                           securities and
                                                                                                           determination of
                                                                                                           securities exempt from
                                                                                                           issuer risk limits.
                                                                                                           Credit Authority for
                                                                                                           issuer risk
                                                                                                           concentrations
                                                                                                           exceeding the standard
                                                                                                           limits and/or for
                                                                                                           illiquid securities in
                                                                                                           accordance with section
                                                                                                           5.4.

5.3.5. Annual turnover limits                                                              [UBS Warburg]
       for banknote trading with                                                           50 and more     Guideline of Swiss
       non-banks                                                                                           Federal Banking
                                                                                                           Commission

5.3.6. Risk controlling process                                                 CRO
</TABLE>
<PAGE>   23
                                                                              13

<TABLE>
<CAPTION>
All amounts in CHF millions       BoD         Chairman's   GCEO or     GCCO        CEO UBS      CEO UBS        Remarks
                                              Office       GCFO or                 Warburg      Switzerland
                                                           GEB(2)
<S>                              <C>          <C>          <C>         <C>         <C>          <C>            <C>
                                                                                                               All authorities
5.4. CREDIT RISK MANAGEMENT                                                                                    are subject to
     AND CONTROL (1)                                                                                           Credit Risk
                                                                                                               Policies as
                                                                                                               approved by the
                                                                                                               GEB and/or the
                                                                                                               GCCO and as
                                                                                                               published on
                                                                                                               BankWeb

5.4.1. Global ceiling for                                                                                      Once a Global
       counterparty                                                                                            Ceiling is
       groups                                                                                                  approved, all
       Nominal amount                                      GEB:                                                subsequent
                                              > 3,500      3,500       2,500                                   decisions within
                                                                                                               this ceiling are
                                                                                                               in the GCCO's
                                                                                                               authority. This
                                                                                                               authority can be
                                                                                                               delegated.
5.4.2. Corporates, brokers,
       investment banks, funds,
       insurance companies, public
       finance and structured
       transactions

5.4.2.1. Credit and
         underwriting exposure

a)       Take and Hold Fin.
         Risk & PCE Limits
            Rating C1 - C2
            Rating C3 - C4                    >3,500       3,500       2,500       2,000         750
            Rating C5 - C6                    >2,500       2,500       2,000       1,500         500
            Rating C7 - C9                    >1,500       1,500       1,000         500         300
            Rating D0 - D1                    >  750         750         400         150         150
            Rating D2 - D4                    >  250         250         100          75          75
                                              >  100         100          50          25          25
</TABLE>

--------
(1) The GCCO and the Business Group CEOs may delegate their credit authority to
a deputy in their absence. Such nomination must be approved by the GEB.
Transactions approved by the GCEO or GCFO are to be reported to the GEB on a
regular basis.

(2) In the absence of the GCEO and the GCFO two GEB members may sign off
transactions on behalf of the GEB.
<PAGE>   24
                                                                              14

<TABLE>
<CAPTION>
All amounts in CHF millions       BoD   Chairman's   GCEO or     GCCO        CEO UBS      CEO UBS        Remarks
                                        Office       GCFO or                 Warburg      Switzerland
                                                     GEB(2)
<S>                              <C>    <C>          <C>         <C>         <C>          <C>            <C>
b)    Temporary Exposures                                                                                The Credit Authority is
      (incl. above take and                                                                              expressed as nominal
      hold, PCE Limits, Bridge &                                                                         value; the quantum varies
      Loan Underwriting                                                                                  with the internal credit
      Commitment subject to sell                                                                         rating of the
      down in 6 months and                                                                               counterparty, resp. the
      Tradable Assets)                                                                                   transaction rating where
                                                                                                         applicable. When the
            Rating C1 - C2                >7,500       7,500       5,000       4,000        1,500        counterparty is part of a
            Rating C3 - C4                >5,000       5,000       4,000       3,000        1,000        group, the average group
            Rating C5 - C6                >3,000       3,000       2,500       1,500          500        credit rating, weighted by
            Rating C7 - C9                >2,500       2,500       2,000         750          250        UBS limits for each
            Rating D0 - D1                >1,500       1,500       1,000         300          100        counterparty (resp.
            Rating D2 - D4                >  500         500         300         150           50        transaction) will
                                                                                                         determine the authority
5.4.2.2. Settlement exposure                                                                             level. For counterparties
         (nominal amount)                                                                                in emerging markets, the
                                                                                                         worse of counterparty or
            Rating C1 - C4                > 2,500       2,500       1,500       1,000         750        country rating will
            Rating C5 - C6                > 2,000       2,000       1,000         750         500        determine credit
            Rating C7                     > 1,000       1,000         500         250         100        authority.
            Rating C8                      >  500         500         250         100          50
            Rating C9                      >  250         250         100          50          25        * One-off authority is
            Rating D0 - D2                 >  100         100          50           0           0        only applicable for
                                                                                                         individual intraday and
            One-off approval *               na          na       unlimited   unlimited    unlimited     overnight excesses. If
                                                                                                         excess occur for a
                                                                                                         counterparty on a regular
                                                                                                         basis the respective limit
                                                                                                         adjustment has to be
                                                                                                         submitted.
</TABLE>
<PAGE>   25
                                                                              15

<TABLE>
<CAPTION>
All amounts in CHF millions       BoD         Chairman's   GCEO or     GCCO        CEO UBS      CEO UBS       Remarks
                                              Office       GCFO or                 Warburg      Switzerland
                                                           GEB(2)
<S>                              <C>          <C>          <C>         <C>         <C>          <C>           <C>
5.4.3. Regulated Savings and
       Commercial Banks

5.4.3.1. Credit and
         underwriting exposure

a)     Take and Hold Fin.
       Risk & PCE Limits

            Rating C1 - C2                    > 3,500       3,500       2,500       2,000         500
            Rating C3 - C4                    > 2,500       2,500       2,000       1,500         250
            Rating C5 - C6                    > 1,500       1,500       1,000         750         100
            Rating C7 - C9                     >  750         750         400         200           0
            Rating D0 - D1                     >  250         250         100          75           0
            Rating D2 - D4                     >  100         100          50          25           0

b)     Temporary Exposures
       (incl. above take and
       hold, PCE Limits, Bridge &
       Loan Underwriting
       Commitment subject to sell
       down in 6 months and
       Tradable Assets)

            Rating C1 - C2                     > 7,500       7,500       5,000       4,000         500
            Rating C3 - C4                     > 5,000       5,000       4,000       3,000         250
            Rating C5 - C6                     > 2,000       2,000       1,500       1,000         100
            Rating C7 - C9                     > 1,000       1,000         750         400           0
            Rating D0 - D1                       > 500         500         250         100           0
            Rating D2 - D4                       > 200         200         100          50           0
</TABLE>
<PAGE>   26
                                                                              16

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's   GCEO or     GCCO        CEO UBS     CEO UBS     Remarks
                                                Office       GCFO or                 Warburg     Switzer-
                                                             GEB(2)                              land
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>         <C>
5.4.3.2. Settlement exposure (nominal                                                                        * One-off authority is
         amount)                                                                                             only applicable for
         Rating C1 - C4                                                                                      individual intraday and
         Rating C5 - C6                             >7,000       7,000       5,000       4,000       1,000   overnight excesses. If
         Rating C7                                  >4,500       4,500       3,000       2,500         750   excess occur for a
         Rating C8                                  >1,500       1,500       1,000         750         200   counterparty on a
         Rating C9                                  >  750         750         500         250          50   regular basis the
         Rating D0 - D2                             >  400         400         250          50           0   respective limit
                                                    >  100         100          25          10           0   adjustment has to be
                                                                                                             submitted.
         One-off approval *                          na           na     unlimited   unlimited   unlimited

------------------------------------------------------------------------------------------------------------------------------------
5.4.4. Private Individuals and                                                                               *Non-marketable
       privately owned Investment                                                                            eligible collateral
       Companies                                                                                             includes single-stock,
                                                                                                             Standby Letter of
5.4.4.1. Lending and margin limits                                                                           Credit, covered
          - unsecured                               >   50          50          20          15          15   guarantees and
          - against marketable                                                                               repurchase value of
            eligible collateral                     >  500         500         400         300         300   life insurance policies
          - against non-marketable
            eligible collateral*                    >  250         250         200         150         150

5.4.4.2. Lending against
          - owner occupied
            residential Real Estate                 >   50          50          25          15          15
          - other Real Estate                       >  250         250         200         150         150

------------------------------------------------------------------------------------------------------------------------------------
5.4.5. Principal Finance (Nominal                                                                            Authorities subject to
       Amounts)                                                                                              Principal Finance
       - Individual, single asset                   >1,000       1,000         500         250           0   Credit Risk Policy and
       - Pooled assets                              >3,000       3,000       1,500         750           0   to market risk approval

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   27
                                                                              17

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's   GCEO or     GCCO        CEO UBS     CEO UBS     Remarks
                                                Office       GCFO or                 Warburg     Switzer-
                                                             GEB(2)                              land
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>         <C>
5.4.6. Impaired Assets(Recovery
       portfolio)                                                                                            The Chairman's Office
                                                                                                             has to be informed
5.4.6.1. Valuation/provisioning                                                                              about important new
          -  Cumulative provision for               >   50          50          25          20          20   recovery positions
             credit exposures
          -  Cumulative provision for               >   50          50          25          20          20
             Other Real Estate Owned
             (OREO)

5.4.6.2. New facilities(exposure
         increase)
          - Additional and/or new                   >   50          50          25          20          20
            loans
          - Loan purchase                           >   50          50          25          20          20

5.4.6.3. Exposure extensions
          - Credit renewals                       >7 years     7 years     5 years     3 years     3 years
          - Stand-still agreements                >7 years     7 years     5 years     3 years     3 years   *Includes possibility
                                                                                                             to swap from senior to
5.4.6.4. Investments                                                                                         subordinated and/or
          Improvements in OREO                      >   30          30          15          10          10   from secured to
                                                                                                             unsecured debt
5.4.6.5. Within approved and
          established financial                                                                              **Write-off authority
          provisions/allowances                                                                              only applies within
          - Equity participation from                                                                        existing Loan Loss
            restructuring                           >   50          50          25          20          20   Provisions Write-Offs
          - Debt forgiveness *                      >   50          50          25          20          20   above CHF 25 mio must
          - Write-offs**                          >75 Info    >50 Info    >25 Info          25          25   be notified to the
                                                                                                             Group CCO and beyond
                                                                                                             depending on Info-
                                                                                                             Requirement

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   28
                                                                              18

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's   GCEO or     GCCO        CEO UBS     CEO UBS     Remarks
                                                Office       GCFO or                 Warburg     Switzer-
                                                             GEB(2)                              land
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>        <C>         <C>         <C>         <C>
5.4.7. Country risk
       Nominal exposures

       S0 - S2                                   No limits   No limits   No limits
       S3 - S4                                      >3,000       3,000       1,000
       S5 - S7                                      >2,000       2,000         750
       S8 - S14                                     >1,000       1,000         500                           not to be delegated

       Definition of countries with                  A           P
       no limits (below S2)

------------------------------------------------------------------------------------------------------------------------------------
5.5. CONSEQUENTIAL RISK MANAGEMENT                                                                           Definition according to
     AND CONTROL                                                                                             the guidelines to the
                                                                                                             risk management and
                                                                                                             control principles

------------------------------------------------------------------------------------------------------------------------------------
5.5.1. Risk Controlling Process                                             CRO

------------------------------------------------------------------------------------------------------------------------------------
5.5.2. Corporate Security                                                   CRO

------------------------------------------------------------------------------------------------------------------------------------
5.5.3. Insurance coverage                                                   CRO

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   29
                                                                              19

6. PERSONNEL AND COMPENSATION

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                         BoD    Chairman's    GEB        Corporate   Business    Remarks
                                                Office                   Center      Groups
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>         <C>
6.1.  APPOINTMENTS, REMOVALS AND
      TITLE RATIFICATION

------------------------------------------------------------------------------------------------------------------------------------

6.1.1. Appointments and removals for
       senior management functions:

6.1.1.1. Group Executive Board             A        P                      P:CEO

6.1.1.2. Group Managing Board              A                      P

6.1.1.3. Non-GMB Members of Business
         Group and Divisional Boards                              A                      P

6.1.1.4. Members of Business Area
         Managements                                                         A           A

------------------------------------------------------------------------------------------------------------------------------------
6.1.2. New Hire, title ratification
       and removal (firing) for MD

       Hiring (including assurance of
       rank) and removal                                                     A           A

       Title ratification/promotion                               A          P           P

------------------------------------------------------------------------------------------------------------------------------------
6.1.3  New hire and removal/firing
       ED, D and other management                                            A           A       Can be further delegated

       Title ratification/promotions                                         A           A       Can be further delegated

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   30
                                                                              20

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                         BoD    Chairman's    GEB        Corporate   Business    Remarks
                                                Office                   Center      Groups
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>         <C>
6.1.4. Appointment and removal of
       Head of  Group Internal Audit       A        P

       Appointment and promotions of
       Senior Management of Group
       Internal Audit                               A

------------------------------------------------------------------------------------------------------------------------------------
6.1.5. Appointment of region and
       country heads, representatives
       and permanent advisors
       according to art. 28 OR                                   A                      P

------------------------------------------------------------------------------------------------------------------------------------

6.2. COMPENSATION

------------------------------------------------------------------------------------------------------------------------------------
6.2.1. Compensation policy                 A                     P

------------------------------------------------------------------------------------------------------------------------------------
6.2.2. Compensation system BoD             A        P

------------------------------------------------------------------------------------------------------------------------------------
6.2.3. Compensation BoD members                      X

------------------------------------------------------------------------------------------------------------------------------------
6.2.4. Compensation system for GEB
       and GMB members                              A                      P:CEO

------------------------------------------------------------------------------------------------------------------------------------
6.2.5. Compensation for GEB and GMB
       members                                      A                      P:CEO
------------------------------------------------------------------------------------------------------------------------------------
6.2.6. Compensation for direct
       reports of GEB members                                   A:CEO        P          P

------------------------------------------------------------------------------------------------------------------------------------
6.2.7. Compensation Head of Group
       Internal Audit                               X

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   31
                                                                              21

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                         BoD    Chairman's    GEB        Corporate   Business    Remarks
                                                Office                   Center      Groups
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>
6.2.8. Bonus

6.2.8.1. Setting of bonus pools for
         Business Groups                                        A:CEO      P:CFO       P:CEO

6.2.8.2. Bonus for GEB and GMB                      A           P:CEO
         members

6.2.8.3. Bonus for other members of
         Business Group and
         Divisional Boards                                      A:CEO      P:CFO       P:CEO

6.2.8.4. Overall bonus for MD, ED, D,
         AD and employees within
         approved pools
                                                                             X          X
------------------------------------------------------------------------------------------------------------------------------------
6.2.9. Other compensation                                                    X          X        May be further delegated

------------------------------------------------------------------------------------------------------------------------------------

6.3. RETIREMENT BENEFIT PLANS

------------------------------------------------------------------------------------------------------------------------------------
6.3.1. Setting Group retirement
       benefit plans                                A            P

------------------------------------------------------------------------------------------------------------------------------------
6.3.2. Appointment of the Board
       members (employer's
       representatives) of the
       pension trusts                               A            P

------------------------------------------------------------------------------------------------------------------------------------
6.3.3. Approval of principles
       governing retirement benefit
       plans                                        A            P

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   32
                                                                              22

7. PARTICIPATIONS/INVESTMENTS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's    GEB        Corporate   Business    Business    Remarks
                                                Office                   Center      Groups      Areas
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>         <C>
7.1. EQUITY PARTICIPATIONS/
       FINANCIAL INVESTMENTS

------------------------------------------------------------------------------------------------------------------------------------
7.1.1. Policy for equity
       participations/financial
       investments                         I                      A      P: CFO

------------------------------------------------------------------------------------------------------------------------------------
7.1.2. Purchase, sale, increase,                                                                             *only for real estate
       decrease of equity                                                                                    companies for bank
       participations/financial                                                                              purposes after project
       investments as well as use of                                                                         approval through
       subscription rights                          >500           500     CFO:50        10*                 Corporate Center(CRE)

------------------------------------------------------------------------------------------------------------------------------------

7.2. PRIVATE EQUITY(1)

------------------------------------------------------------------------------------------------------------------------------------
7.2.1. Overall limit                       A                     P

------------------------------------------------------------------------------------------------------------------------------------
7.2.2. Taking positions                                                               CEO UBSW    CEO UBS
                                                                                                  Capital    *Information of GEB
7.2.2.1. Underwriting                               >500           500                     400        300    required in cases which
                                                                                                             are likely to provoke
7.2.2.2. Final hold position                        >400           400                     300        200*   publicity

------------------------------------------------------------------------------------------------------------------------------------
7.2.3. Sales                                                      I                    I:UBSW        X

------------------------------------------------------------------------------------------------------------------------------------
7.2.4. Write-offs
       (specific to individual
       investments)                                 >50            50                 25          20

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

--------
(1) In urgent cases, where GEB approval is required, the CEO of UBS Capital
together with the Group CEO or CFO and the CEO of UBS Warburg may act on behalf
of the GEB. The GEB is to be informed at its next meeting.
<PAGE>   33
                                                                              23

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's    GEB        Corporate   Business    Remarks
                                                Office                   Center      Groups
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>
7.3. REAL ESTATE

------------------------------------------------------------------------------------------------------------------------------------
7.3.1. Annual investment budget            A                     P

------------------------------------------------------------------------------------------------------------------------------------
7.3.2. Bank properties                                                     (CFO)

7.3.2.1. Release of projects included
         in budget

         - Purchase, sale,
           construction of new and
           alterations to existing
           buildings                                           >50             50         10

         - Liabilities arising from                            >100            100        10*   *) Corporate Center(CRE) to be
           lease and building rights                           >5 p.a.      5 p.a.   1.25 p.a.   informed
           contracts

7.3.2.2. Valuation/provisioning                     >50            50          25

7.3.2.3. Divergence to project release              >10%           10%          5%    CEO:5%**   **) of approved annual budget

7.3.2.4. Projects not included in the
         budget Financial release
         (adding to the Group
         budget)***                                 >10%           10%     CFO:5%     CEO:5%**   ***) Each project has to be
                                                                                                 released with the same approval as
                                                                                                 for projects included in budget

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   34
                                                                              24

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's    GEB        Corporate   Business    Remarks
                                                Office                   Center      Groups
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>
7.3.3. Other properties

7.3.3.1. Release of projects included
         in budget
         Purchase, sale, construction
         of new and alterations to
         existing buildings                                   >50             50

7.3.3.2. Projects not included in                                                                *) Project release: same approval
         budget
         Financial release (adding                                                               as for projects included in budget
         to the Group budget)*                      >10%       10%             5%

------------------------------------------------------------------------------------------------------------------------------------
7.3.4. Pledged properties                                                               PCC
       Setting purchase and sale
       limits for pledged properties                >100           100     CFO:50           25

------------------------------------------------------------------------------------------------------------------------------------

7.4. IT HARDWARE AND SOFTWARE

------------------------------------------------------------------------------------------------------------------------------------
7.4.1. Annual investment budget            A                    P

------------------------------------------------------------------------------------------------------------------------------------
7.4.2. Purchase and sale of IT and
       telecommunications equipment
       and software                                                                              Reporting required to the Head of
       not included in the budget                   >10%           10%     CFO:5%      CEO:5%    the IT Committee

------------------------------------------------------------------------------------------------------------------------------------
7.4.3. Liabilities relating to
       external IT and
       telecommunications assignments                                                            Reporting required to the Head of
       not included in the budget                   >10%           10%          5%     CEO:5%    the IT Committee

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   35
                                                                              25

8. GROUP COMPANIES(GCS)

(GCs are consolidated companies which are either wholly or majority, directly or
indirectly owned or otherwise controlled by UBS AG)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's    GEB        Corporate   Business    Remarks
                                                Office                   Center      Groups
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>

8.1. STRATEGY AND GOVERNANCE

------------------------------------------------------------------------------------------------------------------------------------
8.1.1. Purchase, increase, decrease
       and sale of majority
       shareholdings in financial
       services firms; purchase and
       sale of businesses                >500    500         250        CFO:25

------------------------------------------------------------------------------------------------------------------------------------
8.1.2. Formation of operative or
       non-operative GCs with equity
       of                                       >500         500        CFO:100

------------------------------------------------------------------------------------------------------------------------------------
8.1.3. Establishment and closure of
       -  branches and representative
          offices
          - of the parent company
            outside Switzerland                                   A          P           P
          - of GCs                                                         A:CFO         P
       -  branches in Switzerland                                                      X:PCC

------------------------------------------------------------------------------------------------------------------------------------
8.1.4. Change of external auditors
       for
       -  GCs in Switzerland                        A             P
       -  branches and GCs
          outside Switzerland                       A             P

------------------------------------------------------------------------------------------------------------------------------------
8.1.5. Election of Boards and                                                                    Details are governed by
       appointment of management of                                                              "Regulations governing the
       GCs                                                                   A           A       management of the group companies"

------------------------------------------------------------------------------------------------------------------------------------
8.1.6. Allocation of market and
       credit risk limits                                                 CRO/CCO

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   36
                                                                              26

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions              BoD    Chairman's    GEB        Corporate   Business    Remarks
                                                Office                   Center      Groups
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>    <C>          <C>         <C>         <C>         <C>

8.2. FUNDING AND FINANCIAL MANAGEMENT
     OF GCS

------------------------------------------------------------------------------------------------------------------------------------
8.2.1. Capital increase, individual
       or cumulative p.a. per company               >500           500    CFO:100

------------------------------------------------------------------------------------------------------------------------------------
8.2.2. Capital reduction and
       redemption, merger or
       liquidation of operative or
       non-operative GCs                            >500           500    CFO:100

------------------------------------------------------------------------------------------------------------------------------------
8.2.3. Equity-like lendings to GCs                  >500           500    CFO:100

------------------------------------------------------------------------------------------------------------------------------------
8.2.4. Credit limits for internal
       engagements                                              >2,500   CFO:2,500
-----------------------------------------------------------------------------------------------------------------------------------
8.2.5. Parent guarantees on behalf of
       GCs                                                      >2,500   CFO:2,500

------------------------------------------------------------------------------------------------------------------------------------
8.2.6. Approval of annual financial
       statements including
       distribution of profit                                               CFO

------------------------------------------------------------------------------------------------------------------------------------
8.3. SPECIAL PURPOSE ENTITIES (SPEs)

------------------------------------------------------------------------------------------------------------------------------------
8.3.1. Setting rules governing the
       use of SPEs                                                A        P:CFO
------------------------------------------------------------------------------------------------------------------------------------
8.3.2. Functional management and
       monitoring of SPEs                                                    X           X

------------------------------------------------------------------------------------------------------------------------------------
8.3.3. Formation, purchase, sale,                                                                Legal Structure Committee sign-off
       liquidation or merger of                                                                  required
       non-consolidating SPEs                                                            X

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   37
                                                                              27

9. AUDITING

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                      BoD        Chairman's       GEB        Corporate      Business     Remarks
                                                  Office                       Center        Groups
-----------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>       <C>              <C>         <C>            <C>          <C>
9.1. EXTERNAL AUDIT

-----------------------------------------------------------------------------------------------------------------------------
9.1.1. Appointment of Group and                                                                          *) Proposal to be
       Statutory auditors               A*                          P                                    submitted to the
                                                                                                         AGM for approval.
                                                                                                         Preparation of the
                                                                                                         nomination
                                                                                                         supported by GEB,
                                                                                                         Audit Committee
                                                                                                         and Group Internal
                                                                                                         Audit
-----------------------------------------------------------------------------------------------------------------------------
9.1.2. Approval of Group and                                                                             Preparation for
       Statutory Reports on             A                           P                                    submission to AGM
       financial statements

-----------------------------------------------------------------------------------------------------------------------------

9.2. INTERNAL AUDIT

-----------------------------------------------------------------------------------------------------------------------------
9.2.1. Appointment of the Head
       of Group Internal Audit          A             P
       (GIA)

-----------------------------------------------------------------------------------------------------------------------------
9.2.2. Determination of GIA                           X             I
       activities

-----------------------------------------------------------------------------------------------------------------------------
9.2.3. GIA activity report              A             P             I

-----------------------------------------------------------------------------------------------------------------------------
9.2.4. Individual internal audit                      X             X             X              X       Circulation among
       reports                                                                                           units/persons
                                                                                                         involved/concerned

-----------------------------------------------------------------------------------------------------------------------------

9.3. AUDIT COMMITTEE

-----------------------------------------------------------------------------------------------------------------------------
9.3.1. Regulations on Audit             A             P
       Committee

-----------------------------------------------------------------------------------------------------------------------------
9.3.2. Appointment of members
       and Chairman of Audit            A         Chairman
       Committee                                   BoD: P

-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   38
                                                                              28

10. OTHER MATTERS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions           BoD        Chairman's       GEB        Corporate      Business     Remarks
                                                  Office                       Center        Groups
-----------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>       <C>              <C>         <C>            <C>          <C>

10.1. LITIGATION / SETTLEMENTS

-----------------------------------------------------------------------------------------------------------------------------
10.1.1. Notification about                                                                               Information of
     litigations initiated                                                                               other Bodies
     against the Group and                          >25            25                           10       (e.g. BoD)
     claims lodged                                                                                       required,
                                                                                                         irrespective of
                                                                                                         amounts claimed,
                                                                                                         in cases with high
                                                                                                         reputational risk
-----------------------------------------------------------------------------------------------------------------------------
10. 1.2. Authorization to
      initiate litigations and        >100          100            50         CEO or            20
      to conclude settlements                                                CFO: 20

-----------------------------------------------------------------------------------------------------------------------------
                                                                                                         * Political
10.2. EXTERNAL MANDATES*                                                                                 mandates and
                                                                                                         mandates on a
                                                                                                         private basis do
                                                                                                         not require
                                                                                                         approval, but
                                                                                                         notification
                                                                                                         (Group regulation
                                                                                                         CF/-/006)
-----------------------------------------------------------------------------------------------------------------------------

10.2.1.  of members of the
         Chairman's Office              A

10.2.2.  of members of the BoD                       I

10.2.3.  of members of the GEB                       A

10.2.4.  of members of the GMB                                     A

10.2.5.  of other staff                                                       A: CEO/CFO        A
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   39
                                                                              29

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
All amounts in CHF millions           BoD        Chairman's       GEB        Corporate      Business     Remarks
                                                  Office                       Center        Groups
-----------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>       <C>              <C>         <C>            <C>          <C>
10.3. EQUIPMENT AND MATERIAL

-----------------------------------------------------------------------------------------------------------------------------
10.3.1.  Annual budget for the
         purchase and sale of other
         equipment, fittings and       A                           P
         movables

-----------------------------------------------------------------------------------------------------------------------------
10.3.2.  Purchase and sale of
         other equipment, fittings                                                                       Percentage of
         and movables not included                  >10%           10%        CEO or            5%       approved budget
         in the budget                                                        CFO: 5%

-----------------------------------------------------------------------------------------------------------------------------

10.4. INITIATION OF BANK PROJECTS

-----------------------------------------------------------------------------------------------------------------------------
10.4.1.  Initiation of bank
         projects with projected
         aggregate costs
         (investment, internal and
         external expenses,
         including operating                       >100           100         CFO: 50          50
         expenses for the first
         year of operation)
         amounting to

-----------------------------------------------------------------------------------------------------------------------------

10.5. INDIVIDUAL MANDATES TO
      EXTERNAL CONSULTING FIRMS                                   >2             2              2

-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   40
                                                                              30

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                      BoD        Chairman's       GEB        Corporate      Business     Remarks
                                                  Office                       Center        Groups
-----------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>       <C>              <C>         <C>            <C>          <C>

10.6. PURCHASE AND SALE OF
       BROKER LICENSES                                             A

-----------------------------------------------------------------------------------------------------------------------------

10.7. WARRANT ISSUES ON UBS
     SHARES                                                                                  CEO UBSW

-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

UBS AG

Alex Krauer                           Alberto Togni
Chairman of the Board of Directors      Vice Chairman of the Board of Directors

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]