Exhibit 4.18

Additional Tier 1 capital (Basel III-compliant) 

Issuer 

UBS Group AG, or other employing entities of the UBS group 

ISIN 

- 

Issue Date 

16.02.2024

1

Currency 

USD

Nominal 

2

(million) 

Coupon Rate 

8.30% / 4.60%

3

Maturity Date 

perpetual

4

First Call Date

1 March 2029

5

1

Issuance date which corresponds to grant date for employees.

2

For information on the outstanding amount, refer to the table “Capital and total loss-absorbing capacity

instruments of UBS Group AG (consolidated), UBS AG and Credit Suisse AG (both consolidated and

standalone) - Key features”.

3

 Applicable to USD-denominated and CHF-denominated issues, respectively, and not payable to

EU/UK MRTs and SMFs, both as defined within this document.

4

 Subject to forfeiture and vesting provisions.

5

 For SMFs, as defined within this document, partly on 1 March 2030 and 1 March 2031.

Deferred Contingent Capital Plan 2023/24 (DCCP) 

Summary description of the terms and conditions of DCCP as a capital instrument

Overview

Issues under the DCCP are made by UBS Group AG or certain other employing

entities to key contributors at UBS Group AG or any of its subsidiaries (together,

the "Group"). Eligibility is determined by the Issuer and issues are granted at its

sole discretion.

Issuer

UBS Group AG or certain other employing entities of the UBS group

Type of in-

strument

Non-transferable contingent right against the Issuer to receive

(i)

discretionary annual interest equivalent payments on the nominal

value of a hypothetical perpetual Additional Tier 1 ("AT1") security

notionally issued by UBS Group AG at grant (the "Notional Bond"),

and

(i)

at redemption, as determined by the Issuer in its sole discretion, ei-

ther the value of the Notional Bond in cash or perpetual AT1 secu-

rities issued or guaranteed by UBS Group AG or any other member

of the Group of equivalent value (in each case net of any applica-

ble taxes and social security contributions to the employee's ac-

count).

For DCCP awarded to EU/UK Material Risk Takers (MRT)

1

 and individuals per-

forming designated UK Senior Management Functions (SMF)

2

 there will be no

contingent right to receive discretionary annual interest payments; only a non-

transferable contingent right against the Issuer to receive the amount indicated

under (ii) above.

Conditional In-

terest Equiva-

lents

Subject to (i) the conditions set out under "Trigger Event or Viability Event" and

"Forfeiture and Vesting Provisions" and (ii) the discretionary and mandatory inter-

est cancellation provisions as set out below, interest equivalents will be payable

annually in arrears on the nominal value of the Notional Bond at a rate of 4.60%

for CHF-denominated issues and 8.30% for USD-denominated issues. 

The Issuer may, at its discretion, elect to cancel any interest equivalent that is

otherwise scheduled to be paid on any interest payment date. In addition, without

limitation to the foregoing, payments of interest equivalents will not be made un-

less sufficient distributable items (i.e., net profits carried forward and freely dis-

tributable reserves) of UBS Group AG are available.

Maturity date

Issues under the DCCP have no scheduled maturity date. 

Notwithstanding the foregoing, but subject to the conditions set out under "Trigger

Event or Viability Event" and "Forfeiture and Vesting Provisions", issues to US

taxpayers will mature and be settled on or about 1 March 2029 (the "First Call

Date"), or for US-based SMFs on 1 March 2030 and 1 March 2031 as mentioned

below. The Notional Bond underlying such issues will have no scheduled maturity

date.

1

Based on relevant European Banking Authority's ("EBA") Regulatory Technical Standards (RTS) for EU MRTs,

and for UK MRTs, based on the EBA RTS and the UK Prudential Regulation Authority's and Financial Conduct Au-

thority's rules.

2

As defined by the UK’s Prudential Regulation Authority and Financial Conduct Authority.

Trigger Event

or Viability

Event

All outstanding issuances under the DCCP (or, in case of a Trigger Event (as de-

fined below), all outstanding awards under the DCCP in relation to which a Trig-

ger Event has occurred) will be automatically and permanently written down to

zero, no further amounts will be due or paid thereunder and such awards will be

permanently cancelled, if:

a)

 the reported Common Equity Tier 1 ratio of the Group set forth in UBS

Group AG 's quarterly financial accounts, results, the annual report, or in

any reviewed interim measurement published upon the instruction of the

Swiss Financial Market Supervisory Authority FINMA ("FINMA"), falls be-

low 7% or, with respect to grants awarded to Group Executive Board

members, 10%, as of the relevant balance sheet date (each, a "Trigger

Event");

b)

 FINMA provides UBS Group AG with written notice of its determination

that amounts outstanding under the DCCP are required to be written

down to prevent the insolvency, bankruptcy or failure of UBS Group AG;

or

c)

 UBS Group AG has received a commitment of direct or indirect extraordi-

nary support from the public sector that FINMA has determined and con-

firmed in writing to UBS Group AG is necessary to prevent the insolven-

cy, bankruptcy or failure of UBS Group AG (an event described in clause

(b) or (c), a "Viability Event").

Conditional

Redemption

Subject to the conditions set out under "Trigger Event or Viability Event" and "For-

feiture and Vesting Provisions" and except as mentioned below, the Issuer may,

at its sole discretion, redeem any issuance by way of either a cash payment or

delivery of AT1 securities on the First Call Date, provided that, where the Issuer

has elected to redeem an issuance by way of a cash payment, a redemption will

not occur until FINMA has approved it.

DCCP issuances to SMFs may be redeemed by the Issuer on the same basis, in

equal quantities on 1 March 2030 and 1 March 2031. However, the following

exceptions will apply:

a)

 For SMFs who are members of the Group Executive Board, the DCCP Is-

suances may be redeemed on the same basis with 13% redeemed on 1

March 2030 and 87% redeemed on 1 March 2031;

b)

 For certain designated below-GEB SMFs, the DCCP Issuances may be

redeemed on the same basis with 20% redeemed on 1 March 2030 and

80% redeemed on 1 March 2031.

In case of a redemption by way of delivery of securities, the securities will be per-

petual AT1 securities issued or guaranteed by UBS or any other member of the

Group with substantially the same terms and provisions consistent with the No-

tional Bond, including but not limited to, the same Trigger and Viability Events.

Furthermore, the aggregate value of the AT1 securities shall, subject to rounding,

equal the value of the Notional Bond (net of any applicable taxes and social secu-

rity contributions).

For issuances granted to US taxpayers, redemption will be on the First Call Date,

or for US-based SMFs on 1 March 2030 and 1 March 2031 as mentioned above,

such that if FINMA approval for any cash settlement has not been given at the

applicable point in time, issuances must be settled by delivery of AT1 securities,

on or about that date. Any AT1 securities delivered at settlement shall be market-

able subordinated UBS Group AG debt instruments in the AT1 category having

such terms and provisions consistent with the Notional Bond terms and provisions

as determined by UBS Group AG in its sole discretion on or prior to the Grant

Date.

Forfeiture and

Vesting Provi-

sions

Subject to the conditions set out under "Trigger Event or Viability Event", issu-

ances under the DCCP will vest after a minimum of five years.

An outstanding unvested issuance under the DCCP will generally be forfeited and

cancelled, and no further interest equivalents will generally be due or paid, due to

termination of employment or harmful acts by the employee. In certain circum-

stances, vesting of outstanding awards under the DCCP may be subject to condi-

tions relating to the performance of the Group and/or the employee's business di-

vision and similar conditions. In addition, with respect to any award granted to

Group Executive Board members, if the Group does not generate an adjusted

pre-tax profit with respect to any financial year ending during or after the year of

grant, but prior to the relevant vesting date, the nominal amount of such award

will be reduced by 20% (for each year the Group does not generate an adjusted

pre-tax profit) of the nominal amount of such award on the relevant grant date.

In case of death (in or out of service) or disability, an outstanding unvested issu-

ance under the DCCP will vest on the date that the employee's employment con-

tract terminates due to death or disability or any other date as determined by the

Issuer.

Vesting may be accelerated, and forfeiture provisions may be relaxed, in case of

early termination of the DCCP by, or change of control in, UBS Group AG.

Status

In the event of the liquidation or winding up of the Issuer under circumstances

that do not coincide with the occurrence of a Trigger Event or a Viability Event,

the holder will have a claim ranking junior to all rights and claims of priority credi-

tors of the Issuer (i.e., claims in respect of obligations of the Issuer (i) that are un-

subordinated or (ii) that are subordinated (including Tier 2 instruments) and do

not, or are expressly not stated to, rank pari passu with, or junior to, the Issuer's

obligations under the DCCP or any of the Issuer's obligations ranking pari passu

with the Issuer's obligations under the DCCP).

Governing

Law

Swiss law / in certain cases, New York law