Key Features Document

Optimisation

May 2011

2yr USD Variable Maturity Range Accrual Note (VMRAN) on Societe Generale, Deutsche Bank and Schlumberger Ltd Key Features Document to be read in conjunction with the attached indicative termsheet

Summary The product is designed for investors who expect flat or slightly negative movement in the share price of Societe Generale, Deutsche Bank and Schlumberger Ltd over the investment term, with a potential for an attractive yield at quarterly observation dates of the Note. The callable feature may shorten the tenor of the Note. Issuer Investment Term Minimum Investment Credit Suisse AG via its Nassau Branch 2 years USD 150,000 or EUR 100,000 equivalent in USD (whichever is greater)

Currency Denomination USD 1,000 Stocks Societe Generale (Bloomberg ticker: GLE FP) Deutsche Bank (Bloomberg ticker (DBK GY) and Schlumberger Ltd (Bloomberg ticker: (SLB UN)

Protection The Note does not offer any principal protection. The investor may be fully exposed to the downside performance of the Stocks. Given the risk to capital, UBS advises that investors should only hold the Notes as part of a properly diversified portfolio.

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Strike Prices The Strike Prices will be the closing levels of each Stock on the Initial Valuation Date (defined in the termsheet as StockjInitial). Barrier Level For each Stock an amount equal to 65% of the Strike Price of that Stock. Coupon Payment All coupons (if applicable) are variable quarterly coupons. On each Coupon Payment Date the investor may receive a coupon of up to [2.70]%*. The coupon will accrue on a daily basis for each of the Scheduled Trading Days the Official closing level of all Stocks is higher than or equal to their Barriers. (*Indicative level only, the maximum variable quarterly coupon will be fixed on the Trade Date and will be no lower than 2.50%). Early Redemption and Redemption Amount at Maturity - Scenario 1: If all the Stocks close at or above 100% of their respective Strike Prices on any Coupon Observation Date, the Note will redeem automatically at 100% of its principal investment on the following Coupon Payment Date or Final Redemption Date as relevant. Redemption Amount at Maturity (assuming no previous redemption) - Scenario 2: The Note has not been redeemed according to Scenario 1 and on the Final Valuation Date all the Stocks close below 100% of their respective Strike Prices but also at or above their respective Barriers the Note will redeem at 100% of the initial principal. - Scenario 3: The Note has not been redeemed according to Scenario 1 or 2 and on the Final Valuation Date at least one of the Stocks closes below its respective Barrier, the investor will receive a number of shares of the Stock with the Lowest Performance, physically delivered. This number of shares per Note is worked out as follows: USD 1,000 divided by the Barrier of the Underlying with the Lowest Performance, the balance of any shares is paid in cash. The Final Redemption Amount to be paid at Final Redemption Date or on a Coupon Payment Date and the quarterly Coupon Payment in different scenarios is illustrated in the table below: Quarter Level of worst performing underlying At or above 100% below 100% 2 At or above 100% below 100% 3 At or above 100% below 100% 4 At or above 100% below 100% Redemption Redemption Amount

Yes No Yes No Yes No Yes No

100% + Coupon* Coupon* 100% + Coupon* Coupon* 100% + Coupon* Coupon* 100% + Coupon* Coupon*

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Quarter Level of worst performing underlying At or above 100% 90% 70% 65% 60% 50% 10% 0% Redemption Redemption Amount

Yes Yes Yes Yes Yes Yes Yes Yes

100% + Coupon* 100% + Coupon* 100% + Coupon* 100% + Coupon* 92.31**% + Coupon* 76.92**% + Coupon* 15.38**% + Coupon* 0.00**% + Coupon*

*The coupon reflects the accrued amount over the last quarterly period. **Defined above. Investor will receive fixed number of Stocks in the event of the Trigger Level being breached at maturity, the balance of any Stocks is paid in cash. Investment suitable for investors who: Expect the Stocks to trade sideways or slightly downwards Wish to have USD exposure. Can commit capital for the investment term. Accept downside risk of the underlying Stocks and do not require capital protection and understand that return of capital is not guaranteed, accept risking a portion or the whole of the principal invested and can withstand such losses. Accept potential physical delivery of one of the underlying Stocks. Comfortable with the credit risk of the Issuer. Hold this Note as part of a properly diversified portfolio and avoid any significant concentration risk in regards to the underlying and/or the Issuer.

Tax Considerations The taxation of these investments is complex and will depend on the particular Note structure and investor tax profile. UK resident clients (including those who are non-domiciled in the UK) should obtain specialist tax advice on the consequences of holding these investments to maturity (including where the investment has been bought on the secondary market) and the consequences of redeeming or selling the investment before maturity. Aspects of the Note structure which need to be considered for tax suitability include, but may not be limited to the fact that: the Note is issued by a non UK issuer, it is a USD denominated Note and it is a global registered Note custodied with a depositary offshore. Investment Risk Considerations The investor should intend to hold the investment until Maturity. The investment will be a debt security issued by Credit Suisse AG via its Nassau Branch. Therefore, the investor will be taking credit risk on Credit Suisse AG which has the following credit ratings: Aa1/A+ by Moody's / S&P. Should the credit rating of the Issuer deteriorate over the life of the investment, the value of the product may be affected. Whilst any fall in value would not impact any redemption amount paid at maturity, it could affect the proceeds of sales in the secondary market.

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The Note is not capital protected and the investor will be risking a portion or the whole of the principal invested. An investor should not enter into this transaction unless prepared to lose some, or all, of the principal invested. Investors may receive one of the Stocks valued at less than the initial investment. Given the risk to capital an investor should only hold the Note as part of a properly diversified portfolio and avoid any significant concentration risk in regards to the underlying and/or the Issuer. The Note may contain terms and conditions that allow for the calculation agent to determine or adjust in its absolute discretion the level/value of the Stocks if certain market disruption events or other circumstances affecting normal activities occur. Such terms and conditions may also allow for the Issuer to redeem the Note early at an amount determined by the Calculation Agent, usually being the fair market value. Should the investor wish to sell their investment prior to maturity, the investor should be aware that there may be no obvious secondary market and should the dealer make a market in this security this may be the only market on which a price is available. The term sheet may state that dealer provides a secondary market under normal market conditions. The assessment of normal market conditions and the provision of a secondary market are at the dealer's absolute discretion. Neither the redemption amount nor any return due through the form of a coupon, based on the performance of the Stocks is assured in the event of early redemption (not referring here to the Early Redemption feature contained in the product). The secondary market value of the product is determined not only by changes in the price of the Stocks, but also a number of other factors. These factors may include the frequency and intensity of price fluctuations (volatility) in the Stocks, as well as the prevailing interest rate. A decline in the value of the product may therefore occur even if the price or level, as the case may be, of the Stocks remains constant. Investors should take note of the details of the Market Disruption Events, as defined in the term sheet which apply during the life of the Note and may trigger early redemption of the Notes. Investors should take note of any additional restrictions imposed on the Note holders during the life of the security as detailed in the term sheet. The Stocks do not reflect the benefit of dividends or other income that may be paid on the index components. The Note also will not participate in upside gains in the Stocks, which is in excess of the Redemption Amount. The product upside is capped by the maximum coupon and hence may underperform a direct investment in the Stocks.

Structuring Payment In order to remunerate us for our role as product distributor, we will receive certain fees and/or non-monetary benefits from the product provider. Non-monetary benefits will typically take the form of research, training, education and sales support offered by product providers to our employees. For further details, please contact your client advisor. Fees generally represent a discount to or a portion of the issue price of such products or may also represent a portion of the annual management fee and typically are within the range set out below: Asset Class Structured Products Range of Fees (in %) 0 - 1.0% pa. paid up front and/or on a recurring basis over the life span of the product to remunerate UBS as product distributor.

Indicative Terms We draw your attention to the fact that your proposed investment is part of a book-building exercise and accordingly execution of the Note is subject to a minimum size requirement being met. As such this is not a commitment for UBS AG Wealth Management division to provide this product on the indicated terms as expressed in this document Please note: These draft product details are based on the term sheet provided by Credit Suisse, are indicative only and may be subject to change when the pricing details are finalised. Applicable terms and conditions of the issue are set out in full in the Final Terms and Base Prospectus available on request. Capitalised, but undefined terms are defined in the term sheet.

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I confirm that I have read this document in relation to the 2yr USD VMRAN on Societe Generale, Deutsche Bank and Sclumberger Ltd in conjunction with the term sheet provided specific to the investment, and understand the risks associated with entering into an investment of this nature.

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Signature

Print Name

... Date

Any tax information provided is based upon our understanding of current tax legislation and applicable rates. These may change in the future and they may not apply to your individual circumstances. UBS does not give tax advice and you should consult your independent tax advisor for specific advice before entering into or refraining from entering into any investment. Please note that the investment described herein does not include the security of capital which is characteristic of a deposit with a bank or building society and consequently is not eligible for the cash element of the Financial Services Compensation Scheme. UBS Wealth Management or its associates may have long or short positions in one or more of the investments described herein. This document is issued by UBS Wealth Management, a business group of UBS AG which is authorised and regulated by the Financial Services Authority. It has been prepared solely for information purposes and is based upon opinions, which reflect our current views but which may be liable to change, and upon sources believed to be reliable. In accordance with FSA requirements, we should point out that with regard to any investments mentioned, values may fall as well as rise. It should be noted that past performance is not an indication of future returns. UBS AG is registered as a branch in England and Wales Branch No. BR004507 (A public company limited by shares, incorporated in Switzerland whose registered offices are at Aeschenvorstadt 1, CH-4051, Basel and Bahnhofstrasse 45, CH-8001 Zurich). Registered Address: 1 Finsbury Avenue, London EC2M 2PP. Authorised and regulated by the Financial Services Authority. A member of the London Stock Exchange. UBS AG, Jersey Branch is regulated by the Jersey Financial Services Commission to carry on investment business and trust company business under the Financial Services (Jersey) Law 1998 (as amended) and to carry on banking business under the Banking Business (Jersey) Law 1991 (as amended).

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