Statement of Financial Condition

UBS Securities LLC Notes to the Statement of Financial Condition (continued) (In Thousands) 9. Equity Participation and Other Compensation Plans (continued) The amount of non-vested awards for all plans not yet recognized in 2021, was $188,083 which is expected to be recognized over a weighted average period of 2.61 years. 10. Members' Equity At December 31, 2021, members' equity reported on the statement of financial condition includes Class A Interests, Class B Interests and Preferred Interest all of which were held as specified in Note 1. The Preferred Interest is non-voting and has preference over the payment of dividends of the Company's Class A Interest and Class B Interests. Dividends on the Preferred Interest is cumulative and payable quarterly at the Forward Transfer Pricing Rate ("FTP"). During 2021, the Company paid Preferred Interest dividends in the amount of $2,320 and Class B shares dividends in the amount of $300,000. The Company, with prior written approval of FINRA, may redeem at any time, any or all of the Preferred Interest at par value plus an amount equal to accrued and unpaid dividends through redemption date. 11. Subordinated Borrowings The Company has subordinated loans with UBS Americas Holding LLC, consisting of term loans of $825 million maturing on November 30, 2022; $800 million maturing on May 30, 2023; $825 million maturing on November 30, 2023; $800 million maturing on May 30, 2024; and $825 million maturing on November 30, 2024; and $800 million maturing on May 30, 2025. Loans with UBS Americas Holding LLC bear interest at rates that reset at variable intervals as determined by the Parent, based upon similar funding costs, which approximated one month LIBOR plus a spread based on UBS external rates. Effective June 30, 2021, the agreements were amended to bear interest at rates based upon SOFR plus an agreed upon spread. These subordinated borrowings are available in computing regulatory net capital. See Note 15. 12. Risk Management The Company's risk management policies and related procedures are aligned with those of the Parent. The Company's risk governance framework operates along three lines of defense. The first line of defense, business management, owns respective risk exposures and is required to maintain effective processes and systems to manage its risks, including robust and comprehensive internal controls and documented procedures. Business management has appropriate supervisory controls and review processes in place designed to identify control weaknesses and inadequate processes. The second line of defense, the control functions, provides independent oversight of risks, including assisting in setting risk limits and protecting against non-compliance with applicable laws and regulations. 29

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