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ERISA -- In conjunction with its offering of Nationwide ProAccount to participants in retirement plans subject <br /> to ERISA, NIA acts as an "investment manager" within the meaning of Section 3(38) of ERISA and the Internal <br /> Revenue Code of 1986, as amended (the "Code"), and is a fiduciary within the meaning of Section 3(21) of <br /> ERISA and Section 4975(e)(3)of the Code. <br /> Investment Limitations-- <br /> In its development of portfolios for ProAccount Clients, the IFE does not consider whether the ProAccount <br /> Client has assets invested in self-directed brokerage accounts, individual stocks, employer stock, guaranteed <br /> certificate funds, collective investment funds, Nationwide fixed contracts, or employer-directed monies, which <br /> may otherwise be available through a ProAccount Client's plan or the Nationwide Retirement Program and <br /> NRS Retirement Program. The IFE may use the Nationwide fixed contract when developing portfolios for use <br /> in the NRS Retirement Program. In addition, consistent with the Department of Labor's guidance on the <br /> requirements of Qualified Default Investment Alternatives under the Pension Protection Act of 2006, mutual <br /> fund investment options that charge redemption fees to participants in retirement plans subject to ERISA are <br /> not eligible for consideration by the IFE. <br /> Since Nationwide ProAccount is designed to be a comprehensive investment solution, ProAccount Clients must <br /> allocate their entire available retirement plan account balance (i.e., all unrestricted assets eligible for <br /> investment) to Nationwide ProAccount. Once enrolled in Nationwide ProAccount, NIA implements the IFE's <br /> investment advice and ProAccount Clients are not permitted to make investment allocation changes to their <br /> retirement plan account assets managed through Nationwide ProAccount, including fund-to-fund transfers, <br /> changes to fund allocation, or utilization of automatic rebalancing. NIA will have no responsibility or liability <br /> for investment allocation changes ProAccount Clients make to their retirement plan account assets managed <br /> through Nationwide ProAccount in violation of this restriction. ProAccount Clients retain full inquiry access to <br /> their retirement plan accounts and may still request and be approved for loans (as applicable) and take <br /> applicable distributions. <br /> NIA does not have any duty, responsibility or liability for retirement plan assets that are not part of the <br /> ProAccount Client's retirement plan account being managed through Nationwide ProAccount. <br /> Total Client Assets under NIA manaaement <br /> The below amounts include the assets for all NIA advisory programs. <br /> Amount of Client assets under NIA discretionary management as of December 31, 2012: $2.673 billion. <br /> Amount of Client assets under NIA non-discretionary management as of December 31, 2012: $0. <br /> Item 5 Fees and Compensation <br /> Nationwide Large Cap Growth Portfolio <br /> NIA earns an annual management fee of up to 0.50%of LCG Portfolio daily net assets, which is deducted from <br /> the LCG Portfolio on a monthly basis. Sub-adviser fees are paid out of NIA's management fee. The <br /> management fee is in addition to any custodial, administrative, or transactional fees that the LCG Portfolio <br /> may incur. <br /> Point in Time Non-Discretionary Advice <br /> NIA does not charge the Client a separate fee for its non-discretionary investment advisory services. Any costs <br /> associated with NIA's services are included in the general costs of the Client's deferred compensation plan. <br /> Advice Program for Plan Sponsors of Trustee Directed Retirement Plans <br /> Plans participating in the Advice Program are charged a maximum annual fee of 0.50%("Advice Program Fee"). <br /> The Advice Program Fee is calculated daily based on the market value of the plan's advisory account and <br /> 7 <br />