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NIA may also provide financial compensation to Solicitors for activities not related to the solicitation or <br /> distribution of Nationwide ProAccount. These activities include, but are not limited to, certain marketing <br /> events sponsored by the Solicitors and educational conferences presented to invited guests of the Solicitors. <br /> NIA's provision of financial compensation for these activities is not dependent upon the Solicitors committing <br /> to NIA any specific amount of business. <br /> Compensation from Mutual Funds -- To the extent permitted by applicable law or regulation, companies <br /> affiliated with NIA(collectively, "Nationwide") may receive the following types of payments from mutual funds <br /> selected by the IFE for inclusion in Nationwide ProAccount portfolios: <br /> • Rule 12b-1 fees,which are deducted from mutual fund assets; <br /> • Sub-transfer agent fees or fees paid under administrative service plans adopted by the mutual fund, <br /> which may be deducted from mutual fund assets; and <br /> • Payments by a mutual fund's adviser or sub-adviser(or its affiliates). These payments may be derived, <br /> in whole or in part,from the advisory fee that is deducted from mutual fund assets and reflected in the <br /> mutual fund charges. <br /> The amount of compensation that Nationwide receives from mutual funds selected for Nationwide ProAccount <br /> portfolios may vary by fund. Moreover, the IFE may select mutual funds that are affiliated with Nationwide, in <br /> which case certain companies affiliated with NIA (collectively referred to as the "Nationwide Funds Group") <br /> will also receive compensation from the mutual funds for investment advisory, administrative,transfer agency, <br /> distribution, or other services. Accordingly, Nationwide may receive more revenue with respect to affiliated <br /> mutual funds than unaffiliated mutual funds. <br /> Nationwide's receipt of varying amounts of compensation from affiliated and unaffiliated mutual funds <br /> selected for Nationwide ProAccount portfolios presents a conflict of interest. Nationwide seeks to mitigate <br /> this conflict of interest by employing an IFE to develop and maintain the program's investment methodology, <br /> which NIA cannot influence or modify. Under Nationwide ProAccount, the IFE is solely responsible for <br /> selecting the mutual funds included in the portfolios. The IFE's fees for services provided under Nationwide <br /> ProAccount are not related to the mutual funds it selects or otherwise influenced by the revenue NIA or its <br /> affiliates may receive from such mutual funds. <br /> Please see Item 10 for additional information regarding NIA's relationships with other Nationwide affiliates, <br /> including the Nationwide Funds Group. <br /> Nationwide ProAccount in the NRS Retirement Program <br /> ProAccount Clients in the NRS Retirement Program will be charged a maximum annual fee of 1.00% of their <br /> Nationwide ProAccount assets ("Nationwide ProAccount Fee"), according to the pricing grid in the Nationwide <br /> ProAccount investment advisory agreement between NIA and each ProAccount Client. The Nationwide <br /> ProAccount Fee is subject to change and is in addition to any underlying fund,trustee,custodial, asset, service, <br /> administrative or transactional fees that the retirement plan or participant may incur through the NRS <br /> Retirement Program. The Nationwide ProAccount Fee is calculated daily based on the market value of <br /> Nationwide ProAccount assets and payable at the end of each quarter. <br /> The Nationwide ProAccount Fee is negotiable at the plan level, and NIA may offer certain plans discounted <br /> Nationwide ProAccount Fees or other promotional pricing. Factors NIA considers when negotiating the <br /> Nationwide ProAccount Fee with plan sponsors typically include: <br /> • Amount of assets in the plan; <br /> • Number of participants in the plan; <br /> • Resource and field coverage considerations(e.g., number and location of employee work sites to be <br /> serviced); <br /> • Extent of Nationwide's overall business opportunity with the plan; and <br /> • Competitive forces in the market. <br /> 10 <br />