2005        

Nationwide^® Variable Account-10

December 31, 2005

Annual Report    

Nationwide Life Insurance Company

Home Office: Columbus, Ohio

SPC–4740–12/05

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2005

Assets:
Investments at fair value:
American Century VP – Income & Growth Fund – Class I (ACVPIncGr) 7,920 shares (cost $54,952)	$	59,478
American Century VP – International Fund – Class I (ACVPInt) 7,710 shares (cost $57,655)		63,455
American Century VP – Value Fund – Class I (ACVPVal) 12,496 shares (cost $95,040)		102,467
Credit Suisse Trust – Large Cap Value Portfolio (CSLCapV) 341 shares (cost $4,197)		4,909
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class (DrySmCapIxS) 217 shares (cost $3,508)		3,621
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx) 8,331 shares (cost $254,203)		265,100
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro) 2,764 shares (cost $91,336)		72,098
Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVIFApp) 354 shares (cost $12,389)		13,133
Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd) 4,264 shares (cost $48,276)		48,184
Fidelity® VIP – Equity-Income Portfolio: Service Class (FidVIPEIS) 3,500 shares (cost $77,215)		88,862
Fidelity® VIP – Growth Portfolio: Service Class (FidVIPGrS) 4,243 shares (cost $156,387)		142,396
Fidelity® VIP – High Income Portfolio: Service Class (FidVIPHIS) 1,063 shares (cost $7,059)		6,528
Fidelity® VIP – Overseas Portfolio: Service Class (FidVIPOvS) 1,960 shares (cost $31,548)		40,214
Fidelity® VIP II – Contrafund® Portfolio: Service Class (FidVIPConS) 5,128 shares (cost $125,011)		158,603
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class (FidVIPGrOpS) 1,009 shares (cost $17,549)		17,479
Fidelity® VIP III – Value Strategies Portfolio: Service Class (FidVIPVaIS) 477 shares (cost $6,497)		6,662
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I (GVITDMidCapI) 5,062 shares (cost $72,215)		87,871
Gartmore GVIT – Emerging Markets Fund: Class I (GVITEmMrkts) 3,404 shares (cost $35,185)		44,527
Gartmore GVIT – Federated High Income Bond Fund: Class I (GVITFHiInc) 3,941 shares (cost $30,604)		30,619
Gartmore GVIT – Global Health Sciences Fund: Class I (GVITGlHlth) 624 shares (cost $6,419)		6,453

(Continued)

2

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Gartmore GVIT – Global Technology and Communications Fund: Class I (GVITGlTech) 723 shares (cost $2,755)	$	2,784
Gartmore GVIT – Global Utilities Fund: Class I (GVITGlUtl1) 718 shares (cost $8,094)		7,276
Gartmore GVIT – Government Bond Fund: Class I (GVITGvtBd) 7,528 shares (cost $89,570)		86,874
Gartmore GVIT – Growth Fund – Class I (GVITGrowth) 3,102 shares (cost $42,354)		35,513
Gartmore GVIT – International Growth Fund: Class I (GVITIntGro) 1,091 shares (cost $8,831)		10,044
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I (GVITJPBal) 5,515 shares (cost $51,874)		55,319
Gartmore GVIT – Mid Cap Growth Fund: Class I (GVITSMdCpGr) 638 shares (cost $17,852)		17,320
Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt) 127,840 shares (cost $127,840)		127,840
Gartmore GVIT – Nationwide® Fund: Class I (GVITNWFund) 8,303 shares (cost $85,896)		98,385
Gartmore GVIT – Small Cap Growth Fund: Class I (GVITSmCapGr) 1,063 shares (cost $15,232)		16,899
Gartmore GVIT – Small Cap Value Fund: Class I (GVITSmCapVal) 13,165 shares (cost $128,697)		151,792
Gartmore GVIT – Small Company Fund: Class I (GVITSmComp) 5,618 shares (cost $114,854)		127,985
Gartmore GVIT – U.S. Growth Leaders Fund: Class I (GVITUSGro) 1,149 shares (cost $12,255)		12,401
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I (GVITVKMultiSec) 5,621 shares (cost $55,733)		54,914
Gartmore GVIT – Van Kampen Value Fund – Class I (GVITCVal) 4,907 shares (cost $53,036)		56,573
Gartmore GVIT – Worldwide Leaders Fund: Class I (GVITWLead) 1,038 shares (cost $10,364)		13,230
Janus AS – Forty Portfolio – Service Shares (JanCapAp) 6,765 shares (cost $170,048)		185,710
Janus AS – Global Technology Portfolio – Service Shares (JanGlTech) 8,728 shares (cost $38,719)		34,561
Janus AS – International Growth Portfolio – Service Shares (JanIntGro) 3,398 shares (cost $91,811)		119,495
Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBAMTGuard) 479 shares (cost $6,888)		8,379
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares (NBAMTMCGr) 2,550 shares (cost $43,280)		51,723
Neuberger Berman AMT – Partners Portfolio® – I Class Shares (NBAMTPart) 3,517 shares (cost $61,576)		75,296

(Continued)

3

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class (OppAggGro) 1,522 shares (cost $78,696)	$	75,184
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class (OppCapAp) 3,481 shares (cost $138,761)		134,078
Oppenheimer Funds – Global Securities Fund/VA – Initial Class (OppGlSec) 2,848 shares (cost $73,915)		95,078
Oppenheimer Funds – Main Street Fund®/VA – Initial Class (OppMSFund) 9,468 shares (cost $196,883)		206,302
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt) 298 shares (cost $4,640)		5,942
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs) 732 shares (cost $10,044)		20,294
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKEmMkt) 303 shares (cost $2,644)		2,741
Van Kampen UIF – Mid Cap Growth Portfolio – Class I (VKMidCapG) 246 shares (cost $2,128)		2,992
Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUSRealEst) 3,266 shares (cost $47,635)		75,373
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT (StOpp2) 3,653 shares (cost $74,349)		88,474
Total Investments		3,319,430
Accounts Receivable		1,045
Total Assets		3,320,475
Accounts Payable		363
Contract Owners Equity (note 5)	$	3,320,112

See accompanying notes to financial statements.

4

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS

Year Ended December 31, 2005

Investment activity:	Total			ACVPIncGr		ACVPInt		ACVPVal		CSLCapV		DrySmCapIxS		DryStkIx		DrySRGro
Reinvested dividends	$	34,662		1,258		792		794		36		–		4,266		–
Mortality and expense risk charges (note 2)		(44,940	)	(886	)	(912	)	(1,310	)	(66	)	(96	)	(3,706	)	(1,098	)
Net investment income (loss)		(10,278	)	372		(120	)	(516	)	(30	)	(96	)	560		(1,098	)
Proceeds from mutual fund shares sold		800,171		12,010		25,636		14,586		67		16,423		37,236		13,172
Cost of mutual fund shares sold		(815,498	)	(12,078	)	(34,300	)	(12,519	)	(60	)	(16,791	)	(42,100	)	(21,037	)
Realized gain (loss) on investments		(15,327	)	(68	)	(8,664	)	2,067		7		(368	)	(4,864	)	(7,865	)
Change in unrealized gain (loss) on investments		192,091		1,580		15,825		(6,863	)	328		(477	)	12,886		10,710
Net gain (loss) on investments		176,764		1,512		7,161		(4,796	)	335		(845	)	8,022		2,845
Reinvested capital gains		62,908		–		–		9,192		–		48		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	229,394		1,884		7,041		3,880		305		(893	)	8,582		1,747
Investment activity:	DryVIFApp			FedQualBd		FidVIPEIS		FidVIPGrS		FidVIPHIS		FidVIPOvS		FidVIPConS		FidVIPGrOpS
Reinvested dividends	$	2		1,552		1,636		584		1,258		218		270		160
Mortality and expense risk charges (note 2)		(226	)	(658	)	(1,426	)	(2,014	)	(110	)	(530	)	(1,960	)	(276	)
Net investment income (loss)		(224	)	894		210		(1,430	)	1,148		(312	)	(1,690	)	(116	)
Proceeds from mutual fund shares sold		6,296		19,410		41,312		34,606		7,691		20,407		31,783		11,413
Cost of mutual fund shares sold		(6,750	)	(19,369	)	(40,662	)	(49,612	)	(7,159	)	(22,308	)	(27,183	)	(14,355	)
Realized gain (loss) on investments		(454	)	41		650		(15,006	)	532		(1,901	)	4,600		(2,942	)
Change in unrealized gain (loss) on investments		1,076		(1,261	)	(375	)	21,489		(1,741	)	7,915		17,850		3,859
Net gain (loss) on investments		622		(1,220	)	275		6,483		(1,209	)	6,014		22,450		917
Reinvested capital gains		–		266		3,784		–		–		196		24		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	398		(60	)	4,269		5,053		(61	)	5,898		20,784		801

(Continued)

5

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	FidVIPVaIS			GVITDMidCapI		GVITEmMrkts		GVITFHiInc		GVITGlHlth		GVITGlTech		GVITGlUtl1		GVITGvtBd
Reinvested dividends	$	–		886		242		2,020		–		–		132		3,080
Mortality and expense risk charges (note 2)		(114	)	(1,222	)	(550	)	(344	)	(90	)	(36	)	(70	)	(1,136	)
Net investment income (loss)		(114	)	(336	)	(308	)	1,676		(90	)	(36	)	62		1,944
Proceeds from mutual fund shares sold		7,862		38,449		5,663		606		2,244		38		69		19,053
Cost of mutual fund shares sold		(8,400	)	(28,303	)	(3,241	)	(614	)	(2,202	)	(41	)	(70	)	(19,475	)
Realized gain (loss) on investments		(538	)	10,146		2,422		(8	)	42		(3	)	(1	)	(422	)
Change in unrealized gain (loss) on investments		(613	)	(6,855	)	5,504		(1,240	)	(272	)	(15	)	(817	)	(126	)
Net gain (loss) on investments		(1,151	)	3,291		7,926		(1,248	)	(230	)	(18	)	(818	)	(548	)
Reinvested capital gains		490		5,116		3,690		–		706		–		1,002		142
Net increase (decrease) in contract owners’ equity resulting from operations	$	(775	)	8,071		11,308		428		386		(54	)	246		1,538
Investment activity:	GVITGrowth			GVITIntGro		GVITJPBal		GVITSMdCpGr		GVITMyMkt		GVITNWFund		GVITLead		GVITSmCapGr
Reinvested dividends	$	26		18		1,186		–		3,402		952		12		–
Mortality and expense risk charges (note 2)		(474	)	(30	)	(856	)	(230	)	(1,790	)	(1,494	)	(18	)	(330	)
Net investment income (loss)		(448	)	(12	)	330		(230	)	1,612		(542	)	(6	)	(330	)
Proceeds from mutual fund shares sold		477		30		11,748		5,547		76,078		27,762		2,588		13,899
Cost of mutual fund shares sold		(650	)	(29	)	(11,899	)	(6,435	)	(76,078	)	(28,687	)	(2,487	)	(15,597	)
Realized gain (loss) on investments		(173	)	1		(151	)	(888	)	–		(925	)	101		(1,698	)
Change in unrealized gain (loss) on investments		2,320		1,213		418		2,242		–		7,534		–		2,908
Net gain (loss) on investments		2,147		1,214		267		1,354		–		6,609		101		1,210
Reinvested capital gains		–		22		–		–		–		–		102		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,699		1,224		597		1,124		1,612		6,067		197		880

(Continued)

6

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	GVITSmCapVal			GVITSmComp		GVITUSGro		GVITVKMultiSec		GVITCVal		GVITWLead		JanCapAp		JanGlTech
Reinvested dividends	$	100		–		–		1,756		752		62		14		–
Mortality and expense risk charges (note 2)		(2,080	)	(1,654	)	(194	)	(596	)	(620	)	(110	)	(2,430	)	(508	)
Net investment income (loss)		(1,980	)	(1,654	)	(194	)	1,160		132		(48	)	(2,416	)	(508	)
Proceeds from mutual fund shares sold		16,271		6,672		8,035		16,838		9,567		111		10,288		8,082
Cost of mutual fund shares sold		(13,096	)	(5,456	)	(7,637	)	(16,117	)	(8,796	)	(105	)	(12,650	)	(15,777	)
Realized gain (loss) on investments		3,175		1,216		398		721		771		6		(2,362	)	(7,695	)
Change in unrealized gain (loss) on investments		(17,079	)	(2,013	)	(1,707	)	(2,039	)	(540	)	1,567		22,762		11,393
Net gain (loss) on investments		(13,904	)	(797	)	(1,309	)	(1,318	)	231		1,573		20,400		3,698
Reinvested capital gains		17,418		15,074		2,070		298		1,422		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,534		12,623		567		140		1,785		1,525		17,984		3,190
Investment activity:	JanIntGro			NBAMTGuard		NBAMTPart		NBAMTMCGr		OppAggGro		OppCapAp		OppGlSec		OppMSFund
Reinvested dividends	$	1,016		12		624		–		–		1,144		828		2,650
Mortality and expense risk charges (note 2)		(1,278	)	(112	)	(792	)	(742	)	(1,076	)	(1,804	)	(1,122	)	(2,788	)
Net investment income (loss)		(262	)	(100	)	(168	)	(742	)	(1,076	)	(660	)	(294	)	(138	)
Proceeds from mutual fund shares sold		2,687		112		856		21,418		13,850		17,971		10,020		21,215
Cost of mutual fund shares sold		(2,877	)	(98	)	(692	)	(22,132	)	(22,126	)	(23,531	)	(10,986	)	(24,157	)
Realized gain (loss) on investments		(190	)	14		164		(714	)	(8,276	)	(5,560	)	(966	)	(2,942	)
Change in unrealized gain (loss) on investments		26,596		625		8,534		7,494		17,304		10,886		11,282		11,573
Net gain (loss) on investments		26,406		639		8,698		6,780		9,028		5,326		10,316		8,631
Reinvested capital gains		–		–		14		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	26,144		539		8,544		6,038		7,952		4,666		10,022		8,493

(Continued)

7

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	VEWrldEMkt			VEWrldHAs		VKEmMkt		VKMidCapG		VKUSRealEst		StOpp2
Reinvested dividends	$	42		50		–		–		830		–
Mortality and expense risk charges (note 2)		(68	)	(228	)	(8	)	(40	)	(1,334	)	(1,298	)
Net investment income (loss)		(26	)	(178	)	(8	)	(40	)	(504	)	(1,298	)
Proceeds from mutual fund shares sold		7,900		904		1,060		422		89,866		31,865
Cost of mutual fund shares sold		(5,094	)	(435	)	(1,034	)	(327	)	(56,560	)	(35,324	)
Realized gain (loss) on investments		2,806		469		26		95		33,306		(3,459	)
Change in unrealized gain (loss) on investments		(1,092	)	6,583		97		382		(25,269	)	9,750
Net gain (loss) on investments		1,714		7,052		123		477		8,037		6,291
Reinvested capital gains		–		–		–		–		1,832		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,688		6,874		115		437		9,365		4,993

See accompanying notes to financial statements.

8

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2005 and 2004

	Total					ACVPIncGr				ACVPInt				ACVPVal
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(10,278	)	(13,360	)	372		–		(120	)	(526	)	(516	)	(284	)
Realized gain (loss) on investments		(15,327	)	(50,855	)	(68	)	(79	)	(8,664	)	(1,601	)	2,067		148
Change in unrealized gain (loss) on investments		192,091		354,301		1,580		6,759		15,825		9,917		(6,863	)	7,851
Reinvested capital gains		62,908		33,996		–		–		–		–		9,192		500
Net increase (decrease) in contract owners’ equity resulting from operations		229,394		324,082		1,884		6,680		7,041		7,790		3,880		8,215
Equity transactions:
Purchase payments received from contract owners (note 3)		38,262		44,746		–		–		–		–		–		3,048
Transfers between funds		–		–		(5,238	)	38		(3,700	)	1,492		28,552		5,648
Surrenders (note 3)		(202,540	)	(101,188	)	(2,184	)	–		(2,276	)	(275	)	(5,570	)	–
Death Benefits (note 4)		(29,068	)	(64,300	)	–		–		(5,416	)	–		–		–
Deductions for surrender charges (note 2)		(7,602	)	(6,873	)	(174	)	–		(198	)	–		(380	)	–
Adjustments to maintain reserves		(86	)	2,169		(9	)	16		(4	)	21		(3	)	21
Net equity transactions		(201,034	)	(125,446	)	(7,605	)	54		(11,594	)	1,238		22,599		8,717
Net change in contract owners’ equity		28,360		198,636		(5,721	)	6,734		(4,553	)	9,028		26,479		16,932
Contract owners’ equity beginning of period		3,291,752		3,093,116		65,211		58,477		68,027		58,999		76,005		59,073
Contract owners’ equity end of period	$	3,320,112		3,291,752		59,490		65,211		63,474		68,027		102,484		76,005
CHANGES IN UNITS:
Beginning units		321,598		343,783		6,392		6,386		7,430		7,302		4,822		4,225
Units purchased		27,096		26,604		341		6		17		357		1,832		597
Units redeemed		(46,456	)	(48,789	)	(1,081	)	–		(1,239	)	(229	)	(376	)	–
Ending units		302,238		321,598		5,652		6,392		6,208		7,430		6,278		4,822

(Continued)

9

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	CSLCapV					DrySmCapIxS				DryStkIx				DrySRGro
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(30	)	(38	)	(96	)	6		560		1,070		(1,098	)	(788	)
Realized gain (loss) on investments		7		1		(368	)	479		(4,864	)	(1,307	)	(7,865	)	(1,894	)
Change in unrealized gain (loss) on investments		328		448		(477	)	591		12,886		23,318		10,710		6,370
Reinvested capital gains		–		–		48		332		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		305		411		(893	)	1,408		8,582		23,081		1,747		3,688
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		–		–		–		–		–
Transfers between funds		–		–		(13,318	)	17,774		(3,792	)	4,322		(6,124	)	(948	)
Surrenders (note 3)		–		–		–		(1,086	)	(7,818	)	(2,185	)	(5,508	)	–
Death Benefits (note 4)		–		–		–		–		(4,702	)	–		–		–
Deductions for surrender charges (note 2)		–		–		–		(268	)	(614	)	(493	)	(440	)	–
Adjustments to maintain reserves		–		10		(20	)	27		(25	)	14		7		6
Net equity transactions		–		10		(13,338	)	16,447		(16,951	)	1,658		(12,065	)	(942	)
Net change in contract owners’ equity		305		421		(14,231	)	17,855		(8,369	)	24,739		(10,318	)	2,746
Contract owners’ equity beginning of period		4,610		4,189		17,855		–		273,463		248,724		82,430		79,684
Contract owners’ equity end of period	$	4,915		4,610		3,624		17,855		265,094		273,463		72,112		82,430
CHANGES IN UNITS:
Beginning units		420		419		1,438		–		29,210		28,983		11,256		11,395
Units purchased		–		1		33		1,548		526		516		–		71
Units redeemed		–		–		(1,195	)	(110	)	(2,306	)	(289	)	(1,618	)	(210	)
Ending units		420		420		276		1,438		27,430		29,210		9,638		11,256

(Continued)

10

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	DryVIFApp					FedQualBd				FidVIPEIS				FidVIPGrS
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(224	)	60		894		1,088		210		(18	)	(1,430	)	(1,956	)
Realized gain (loss) on investments		(454	)	(24	)	41		254		650		(60	)	(15,006	)	(6,760	)
Change in unrealized gain (loss) on investments		1,076		616		(1,261	)	(776	)	(375	)	8,814		21,489		11,389
Reinvested capital gains		–		–		266		368		3,784		320		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		398		652		(60	)	934		4,269		9,056		5,053		2,673
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		–		–		–		–		–
Transfers between funds		(5,918	)	738		13,740		(3,596	)	(314	)	6,998		(15,548	)	(9,776	)
Surrenders (note 3)		–		–		(6,554	)	–		(16,428	)	(416	)	(1,206	)	–
Death Benefits (note 4)		–		–		–		–		–		–		(5,124	)	–
Deductions for surrender charges (note 2)		–		–		(620	)	–		(864	)	–		–		–
Adjustments to maintain reserves		3		19		3		26		2		8		(28	)	16
Net equity transactions		(5,915	)	757		6,569		(3,570	)	(17,604	)	6,590		(21,906	)	(9,760	)
Net change in contract owners’ equity		(5,517	)	1,409		6,509		(2,636	)	(13,335	)	15,646		(16,853	)	(7,087	)
Contract owners’ equity beginning of period		18,670		17,261		41,706		44,342		102,215		86,569		159,248		166,335
Contract owners’ equity end of period	$	13,153		18,670		48,215		41,706		88,880		102,215		142,395		159,248
CHANGES IN UNITS:
Beginning units		1,908		1,827		3,176		3,450		8,558		7,960		19,908		21,172
Units purchased		10		81		1,049		2		1,419		635		–		3
Units redeemed		(612	)	–		(549	)	(276	)	(2,841	)	(37	)	(2,824	)	(1,267	)
Ending units		1,306		1,908		3,676		3,176		7,136		8,558		17,084		19,908

(Continued)

11

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPHIS					FidVIPOvS				FidVIPConS				FidVIPGrOpS
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	1,148		1,436		(312	)	(176	)	(1,690	)	(1,202	)	(116	)	(246	)
Realized gain (loss) on investments		532		800		(1,901	)	(309	)	4,600		(286	)	(2,942	)	(123	)
Change in unrealized gain (loss) on investments		(1,741	)	(1,424	)	7,915		5,153		17,850		15,340		3,859		1,836
Reinvested capital gains		–		–		196		–		24		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(61	)	812		5,898		4,668		20,784		13,852		801		1,467
Equity transactions:
Purchase payments received from contract owners (note 3)		–		4,064		54		–		14,004		3,048		–		–
Transfers between funds		(6,036	)	(10,742	)	(7,188	)	8,462		23,204		10,894		(11,136	)	–
Surrenders (note 3)		(1,546	)	–		(548	)	(557	)	(13,642	)	(4,928	)	–		–
Death Benefits (note 4)		–		–		–		–		–		–		–		–
Deductions for surrender charges (note 2)		–		–		(18	)	–		(550	)	(984	)	–		–
Adjustments to maintain reserves		8		7		(6	)	26		(9	)	10		10		(2	)
Net equity transactions		(7,574	)	(6,671	)	(7,706	)	7,931		23,007		8,040		(11,126	)	(2	)
Net change in contract owners’ equity		(7,635	)	(5,859	)	(1,808	)	12,599		43,791		21,892		(10,325	)	1,465
Contract owners’ equity beginning of period		14,177		20,036		42,036		29,437		114,819		92,927		27,815		26,350
Contract owners’ equity end of period	$	6,542		14,177		40,228		42,036		158,610		114,819		17,490		27,815
CHANGES IN UNITS:
Beginning units		1,494		2,279		4,418		3,462		9,550		8,790		3,660		3,660
Units purchased		–		428		382		1,020		2,386		1,484		–		–
Units redeemed		(812	)	(1,213	)	(1,196	)	(64	)	(486	)	(724	)	(1,516	)	–
Ending units		682		1,494		3,604		4,418		11,450		9,550		2,144		3,660

(Continued)

12

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPVaIS					GVITDMidCapI				GVITEmMrkts				GVITFHiInc
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(114	)	(284	)	(336	)	(692	)	(308	)	(124	)	1,676		1,190
Realized gain (loss) on investments		(538	)	(154	)	10,146		1,126		2,422		2,961		(8	)	81
Change in unrealized gain (loss) on investments		(613	)	(243	)	(6,855	)	9,678		5,504		(2,946	)	(1,240	)	508
Reinvested capital gains		490		48		5,116		2,380		3,690		1,664		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(775	)	(633	)	8,071		12,492		11,308		1,555		428		1,779
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		4,584		–		3,048		–		644
Transfers between funds		6,382		9,418		(9,592	)	18,768		17,024		(250	)	11,488		–
Surrenders (note 3)		(7,750	)	(7,681	)	(11,230	)	(2,069	)	(3,622	)	(11,659	)	(234	)	(3,381	)
Death Benefits (note 4)		–		–		–		–		–		–		–		–
Deductions for surrender charges (note 2)		–		(134	)	(246	)	(511	)	(468	)	–		(8	)	(194	)
Adjustments to maintain reserves		6		15		(18	)	39		11		8		(14	)	(650	)
Net equity transactions		(1,362	)	1,618		(21,086	)	20,811		12,945		(8,853	)	11,232		(3,581	)
Net change in contract owners’ equity		(2,137	)	985		(13,015	)	33,303		24,253		(7,298	)	11,660		(1,802	)
Contract owners’ equity beginning of period		8,822		7,837		100,905		67,602		20,295		27,593		18,963		20,765
Contract owners’ equity end of period	$	6,685		8,822		87,890		100,905		44,548		20,295		30,623		18,963
CHANGES IN UNITS:
Beginning units		678		677		6,170		4,717		1,542		2,496		1,494		1,776
Units purchased		–		53		–		1,613		1,406		231		917		51
Units redeemed		(170	)	(52	)	(1,308	)	(160	)	(360	)	(1,185	)	(21	)	(333	)
Ending units		508		678		4,862		6,170		2,588		1,542		2,390		1,494

(Continued)

13

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITGlHlth					GVITGlTech				GVITGlUtl1			GVITGvtBd
Investment activity:	2005			2004		2005		2004		2005		2004	2005		2004
Net investment income (loss)	$	(90	)	(64	)	(36	)	(238	)	62		–	1,944		3,250
Realized gain (loss) on investments		42		(152	)	(3	)	(569	)	(1	)	–	(422	)	882
Change in unrealized gain (loss) on investments		(272	)	408		(15	)	284		(817	)	–	(126	)	(3,483	)
Reinvested capital gains		706		26		–		–		1,002		–	142		1,410
Net increase (decrease) in contract owners’ equity resulting from operations		386		218		(54	)	(523	)	246		–	1,538		2,059
Equity transactions:
Purchase payments received from contract owners (note 3)		–		2,032		–		–		–		–	10,642		–
Transfers between funds		354		3,402		–		(26,386	)	7,028		–	(10,666	)	(22,714	)
Surrenders (note 3)		–		(1,939	)	–		(8,157	)	–		–	–		–
Death Benefits (note 4)		–		–		–		–		–		–	–		–
Deductions for surrender charges (note 2)		–		–		–		–		–		–	–		–
Adjustments to maintain reserves		13		26		–		1		27		–	(38	)	35
Net equity transactions		367		3,521		–		(34,542	)	7,055		–	(62	)	(22,679	)
Net change in contract owners’ equity		753		3,739		(54	)	(35,065	)	7,301		–	1,476		(20,620	)
Contract owners’ equity beginning of period		5,733		1,994		2,839		37,904		–		–	85,402		106,022
Contract owners’ equity end of period	$	6,486		5,733		2,785		2,839		7,301		–	86,878		85,402
CHANGES IN UNITS:
Beginning units		484		179		944		12,962		–		–	6,538		8,264
Units purchased		214		477		–		–		516		–	1,065		704
Units redeemed		(186	)	(172	)	–		(12,018	)	–		–	(1,071	)	(2,430	)
Ending units		512		484		944		944		516		–	6,532		6,538

(Continued)

14

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITGrowth					GVITIntGro				GVITJPBal				GVITSMdCpGr
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(448	)	(400	)	(12	)	(28	)	330		352		(230	)	(192	)
Realized gain (loss) on investments		(173	)	(2,787	)	1		240		(151	)	(94	)	(888	)	(149	)
Change in unrealized gain (loss) on investments		2,320		5,478		1,213		(134	)	418		4,068		2,242		2,174
Reinvested capital gains		–		–		22		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,699		2,291		1,224		78		597		4,326		1,124		1,833
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		–		–		–		–		–
Transfers between funds		–		(1,482	)	8,818		(2,208	)	(10,304	)	2,554		1,310		–
Surrenders (note 3)		–		(3,824	)	–		–		(372	)	(388	)	(230	)	(231	)
Death Benefits (note 4)		–		–		–		–		–		–		–		–
Deductions for surrender charges (note 2)		–		(480	)	–		–		(12	)	–		(8	)	–
Adjustments to maintain reserves		(3	)	6		14		(5	)	(13	)	20		11		(1	)
Net equity transactions		(3	)	(5,780	)	8,832		(2,213	)	(10,701	)	2,186		1,083		(232	)
Net change in contract owners’ equity		1,696		(3,489	)	10,056		(2,135	)	(10,104	)	6,512		2,207		1,601
Contract owners’ equity beginning of period		33,823		37,312		–		2,135		65,429		58,917		15,123		13,522
Contract owners’ equity end of period	$	35,519		33,823		10,056		–		55,325		65,429		17,330		15,123
CHANGES IN UNITS:
Beginning units		6,428		7,562		–		329		6,450		6,213		1,900		1,932
Units purchased		–		1		1,072		–		20		277		762		–
Units redeemed		–		(1,135	)	–		(329	)	(1,076	)	(40	)	(650	)	(32	)
Ending units		6,428		6,428		1,072		–		5,394		6,450		2,012		1,900

(Continued)

15

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITMyMkt					GVITNWFund				GVITLead				GVITNStrVal
Investment activity:	2005			2004		2005		2004		2005		2004		2005	2004
Net investment income (loss)	$	1,612		(1,294	)	(542	)	(146	)	(6	)	(6	)	–	(20	)
Realized gain (loss) on investments		–		–		(925	)	(1,957	)	101		594		–	284
Change in unrealized gain (loss) on investments		–		–		7,534		10,091		–		(533	)	–	8
Reinvested capital gains		–		–		–		–		102		–		–	–
Net increase (decrease) in contract owners’ equity resulting from operations		1,612		(1,294	)	6,067		7,988		197		55		–	272
Equity transactions:
Purchase payments received from contract owners (note 3)		–		192		–		–		–		–		–	–
Transfers between funds		30,266		(7,942	)	(8,856	)	(7,316	)	(200	)	(3,978	)	–	–
Surrenders (note 3)		(63,392	)	(6,732	)	(8,642	)	–		–		–		–	(4,422	)
Death Benefits (note 4)		–		(38,766	)	–		–		–		–		–	–
Deductions for surrender charges (note 2)		(988	)	(436	)	(688	)	–		–		–		–	–
Adjustments to maintain reserves		(27	)	(33	)	(20	)	16		3		(1	)	–	(2	)
Net equity transactions		(34,141	)	(53,717	)	(18,206	)	(7,300	)	(197	)	(3,979	)	–	(4,424	)
Net change in contract owners’ equity		(32,529	)	(55,011	)	(12,139	)	688		–		(3,924	)	–	(4,152	)
Contract owners’ equity beginning of period		160,341		215,352		110,527		109,839		–		3,924		–	4,152
Contract owners’ equity end of period	$	127,812		160,341		98,388		110,527		–		–		–	–
CHANGES IN UNITS:
Beginning units		15,118		20,183		10,992		11,821		–		379		–	377
Units purchased		196		4,962		815		16		–		–		–	–
Units redeemed		(3,410	)	(10,027	)	(2,571	)	(845	)	–		(379	)	–	(377	)
Ending units		11,904		15,118		9,236		10,992		–		–		–	–

(Continued)

16

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITSmCapGr					GVITSmCapVal				GVITSmComp				GVITUSGro
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(330	)	(390	)	(1,980	)	(2,566	)	(1,654	)	(1,408	)	(194	)	(274	)
Realized gain (loss) on investments		(1,698	)	(1,312	)	3,175		13,399		1,216		1,817		398		1,315
Change in unrealized gain (loss) on investments		2,908		4,746		(17,079	)	4,116		(2,013	)	3,478		(1,707	)	103
Reinvested capital gains		–		–		17,418		11,404		15,074		12,378		2,070		826
Net increase (decrease) in contract owners’ equity resulting from operations		880		3,044		1,534		26,353		12,623		16,265		567		1,970
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		576		–		6,700		–		–
Transfers between funds		(13,568	)	(3,842	)	(10,818	)	(65,296	)	5,886		2,896		–		(8,532	)
Surrenders (note 3)		–		–		(3,290	)	(13,575	)	(1,000	)	–		(7,842	)	(1,310	)
Death Benefits (note 4)		–		–		–		–		–		(5,986	)	–		–
Deductions for surrender charges (note 2)		–		–		–		(1,267	)	(96	)	–		–		–
Adjustments to maintain reserves		(12	)	28		9		(707	)	1		379		17		4
Net equity transactions		(13,580	)	(3,814	)	(14,099	)	(80,269	)	4,791		3,989		(7,825	)	(9,838	)
Net change in contract owners’ equity		(12,700	)	(770	)	(12,565	)	(53,916	)	17,414		20,254		(7,258	)	(7,868	)
Contract owners’ equity beginning of period		29,612		30,382		164,394		218,310		110,587		90,333		19,678		27,546
Contract owners’ equity end of period	$	16,912		29,612		151,829		164,394		128,001		110,587		12,420		19,678
CHANGES IN UNITS:
Beginning units		2,538		2,912		8,304		12,754		6,382		6,118		1,452		2,253
Units purchased		–		2		–		1		367		646		–		–
Units redeemed		(1,178	)	(376	)	(758	)	(4,451	)	(79	)	(382	)	(622	)	(801	)
Ending units		1,360		2,538		7,546		8,304		6,670		6,382		830		1,452

(Continued)

17

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITVKMultiSec					GVITCVal				GVITWLead				JanCapAp
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	1,160		842		132		30		(48	)	(80	)	(2,416	)	(2,268	)
Realized gain (loss) on investments		721		809		771		(78	)	6		(11	)	(2,362	)	(10,102	)
Change in unrealized gain (loss) on investments		(2,039	)	(201	)	(540	)	4,449		1,567		883		22,762		37,804
Reinvested capital gains		298		–		1,422		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		140		1,450		1,785		4,401		1,525		792		17,984		25,434
Equity transactions:
Purchase payments received from contract owners (note 3)		–		636		–		5,080		–		–		–		–
Transfers between funds		33,856		362		22,528		18,712		5,282		–		(7,866	)	(2,022	)
Surrenders (note 3)		(1,874	)	(4,329	)	(4,686	)	–		–		–		–		(5,456	)
Death Benefits (note 4)		–		–		–		–		–		–		–		(4,088	)
Deductions for surrender charges (note 2)		(178	)	(277	)	(626	)	–		–		–		–		(648	)
Adjustments to maintain reserves		23		(759	)	2		24		9		(1	)	(17	)	287
Net equity transactions		31,827		(4,367	)	17,218		23,816		5,291		(1	)	(7,883	)	(11,927	)
Net change in contract owners’ equity		31,967		(2,917	)	19,003		28,217		6,816		791		10,101		13,507
Contract owners’ equity beginning of period		22,976		25,893		37,594		9,377		6,424		5,633		175,611		162,104
Contract owners’ equity end of period	$	54,943		22,976		56,597		37,594		13,240		6,424		185,712		175,611
CHANGES IN UNITS:
Beginning units		1,714		2,029		3,900		1,127		724		724		24,508		26,317
Units purchased		2,507		29		2,374		2,773		544		–		–		3
Units redeemed		(153	)	(344	)	(562	)	–		–		–		(1,158	)	(1,812	)
Ending units		4,068		1,714		5,712		3,900		1,268		724		23,350		24,508

(Continued)

18

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	JanGlTech					JanIntGro				NBAMTGuard				NBAMTPart
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(508	)	(578	)	(262	)	(456	)	(100	)	(92	)	(168	)	(452	)
Realized gain (loss) on investments		(7,695	)	(12,046	)	(190	)	(10,197	)	14		1		164		8
Change in unrealized gain (loss) on investments		11,393		12,106		26,596		23,634		625		1,064		8,534		5,450
Reinvested capital gains		–		–		–		–		–		–		14		–
Net increase (decrease) in contract owners’ equity resulting from operations		3,190		(518	)	26,144		12,981		539		973		8,544		5,006
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		(1,038	)	–		–		13,566		–
Transfers between funds		(6,348	)	678		9,462		(3,186	)	–		–		9,870		22,224
Surrenders (note 3)		(1,150	)	(3,474	)	–		(2,895	)	–		–		–		–
Death Benefits (note 4)		–		(2,524	)	–		(4,014	)	–		–		–		–
Deductions for surrender charges (note 2)		(78	)	(461	)	–		(176	)	–		–		–		–
Adjustments to maintain reserves		(2	)	127		(1	)	1,001		–		2		14		6
Net equity transactions		(7,578	)	(5,654	)	9,461		(10,308	)	–		2		23,450		22,230
Net change in contract owners’ equity		(4,388	)	(6,172	)	35,605		2,673		539		975		31,994		27,236
Contract owners’ equity beginning of period		38,953		45,125		83,898		81,225		7,841		6,866		43,325		16,089
Contract owners’ equity end of period	$	34,565		38,953		119,503		83,898		8,380		7,841		75,319		43,325
CHANGES IN UNITS:
Beginning units		11,626		13,356		11,970		13,563		648		648		3,574		1,557
Units purchased		–		206		1,135		1		–		–		1,764		2,018
Units redeemed		(2,248	)	(1,936	)	(1	)	(1,594	)	–		–		–		(1	)
Ending units		9,378		11,626		13,104		11,970		648		648		5,338		3,574

(Continued)

19

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBAMTMCGr					OppAggGro				OppCapAp				OppGlSec
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(742	)	(722	)	(1,076	)	(990	)	(660	)	(1,294	)	(294	)	(90	)
Realized gain (loss) on investments		(714	)	(6,649	)	(8,276	)	(8,975	)	(5,560	)	(3,398	)	(966	)	(824	)
Change in unrealized gain (loss) on investments		7,494		14,012		17,304		21,755		10,886		10,757		11,282		12,064
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		6,038		6,641		7,952		11,790		4,666		6,065		10,022		11,150
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		–		–		(450	)	(4	)	–
Transfers between funds		(5,366	)	278		(7,498	)	(886	)	10,088		23,736		18,584		(2,346	)
Surrenders (note 3)		–		–		(2,494	)	–		–		(1,936	)	(8,810	)	–
Death Benefits (note 4)		(4,106	)	(5,840	)	–		(3,082	)	(4,222	)	–		–		–
Deductions for surrender charges (note 2)		–		–		(200	)	–		–		(126	)	–		–
Adjustments to maintain reserves		(13	)	646		(33	)	313		11		421		20		15
Net equity transactions		(9,485	)	(4,916	)	(10,225	)	(3,655	)	5,877		21,645		9,790		(2,331	)
Net change in contract owners’ equity		(3,447	)	1,725		(2,273	)	8,135		10,543		27,710		19,812		8,819
Contract owners’ equity beginning of period		55,167		53,442		77,454		69,319		123,553		95,843		75,299		66,480
Contract owners’ equity end of period	$	51,720		55,167		75,181		77,454		134,096		123,553		95,111		75,299
CHANGES IN UNITS:
Beginning units		5,436		6,039		8,638		9,130		11,544		9,442		7,178		7,446
Units purchased		–		30		291		60		948		2,472		1,246		1
Units redeemed		(892	)	(633	)	(1,359	)	(552	)	(402	)	(370	)	(380	)	(269	)
Ending units		4,544		5,436		7,570		8,638		12,090		11,544		8,044		7,178

(Continued)

20

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	OppMSFund					VEWrldEMkt				VEWrldHAs				VKEmMkt
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(138	)	(1,152	)	(26	)	(38	)	(178	)	(120	)	(8	)	(22	)
Realized gain (loss) on investments		(2,942	)	(3,841	)	2,806		27		469		153		26		51
Change in unrealized gain (loss) on investments		11,573		20,546		(1,092	)	987		6,583		2,369		97		(175	)
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		8,493		15,553		1,688		976		6,874		2,402		115		(146	)
Equity transactions:
Purchase payments received from contract owners (note 3)		–		(694	)	–		–		–		–		–		–
Transfers between funds		(5,792	)	392		(756	)	–		516		5,254		3,676		(3,304	)
Surrenders (note 3)		(942	)	(7,549	)	–		–		–		–		(960	)	–
Death Benefits (note 4)		–		–		–		–		–		–		–		–
Deductions for surrender charges (note 2)		(32	)	(418	)	–		–		–		–		(92	)	–
Adjustments to maintain reserves		(30	)	593		(23	)	29		(26	)	31		35		4
Net equity transactions		(6,796	)	(7,676	)	(779	)	29		490		5,285		2,659		(3,300	)
Net change in contract owners’ equity		1,697		7,877		909		1,005		7,364		7,687		2,774		(3,446	)
Contract owners’ equity beginning of period		204,606		196,729		5,041		4,036		12,937		5,250		–		3,446
Contract owners’ equity end of period	$	206,303		204,606		5,950		5,041		20,301		12,937		2,774		–
CHANGES IN UNITS:
Beginning units		21,368		22,174		322		320		772		383		–		188
Units purchased		681		44		47		2		40		389		174		–
Units redeemed		(1,431	)	(850	)	(77	)	–		(2	)	–		(48	)	(188	)
Ending units		20,618		21,368		292		322		810		772		126		–

(Continued)

21

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	VKMidCapG					VKUSRealEst			StOpp2
Investment activity:	2005			2004		2005		2004	2005		2004
Net investment income (loss)	$	(40	)	(24	)	(504	)	346	(1,298	)	(1,292	)
Realized gain (loss) on investments		95		23		33,306		587	(3,459	)	(1,157	)
Change in unrealized gain (loss) on investments		382		482		(25,269	)	35,507	9,750		16,805
Reinvested capital gains		–		–		1,832		2,340	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		437		481		9,365		38,780	4,993		14,356
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		6,638	–		6,638
Transfers between funds		(282	)	2,358		(78,500	)	18,544	(13,190	)	810
Surrenders (note 3)		–		–		(10,026	)	–	(714	)	(734	)
Death Benefits (note 4)		–		–		–		–	(5,498	)	–
Deductions for surrender charges (note 2)		–		–		–		–	(24	)	–
Adjustments to maintain reserves		12		–		37		23	–		4
Net equity transactions		(270	)	2,358		(88,489	)	25,205	(19,426	)	6,718
Net change in contract owners’ equity		167		2,839		(79,124	)	63,985	(14,433	)	21,074
Contract owners’ equity beginning of period		2,839		–		154,557		90,572	102,917		81,843
Contract owners’ equity end of period	$	3,006		2,839		75,433		154,557	88,484		102,917
CHANGES IN UNITS:
Beginning units		416		–		6,456		5,088	9,750		9,038
Units purchased		–		416		–		1,368	–		1,009
Units redeemed		(36	)	–		(3,726	)	–	(1,870	)	(297	)
Ending units		380		416		2,730		6,456	7,880		9,750

See accompanying notes to financial statements.

22

NATIONWIDE VARIABLE ACCOUNT-10

NOTES TO FINANCIAL STATEMENTS

December 31, 2005 and 2004

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide Variable Account-10 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on March 31, 1999. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers tax qualified and non-tax qualified Individual Deferred Variable Annuity Contracts through the Account. The primary distribution for the contracts is through the brokerage community; however, other distributors are utilized.

(b) The Contracts

Only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees, are offered for purchase. See note 2 for a discussion of contract expenses.

Contract owners in either the accumulation or payout phase may invest in the following:

Portfolios of the American Century Variable Portfolios, Inc. (American Century VP);

    American Century VP – Income & Growth Fund – Class I (ACVPIncGr)

    American Century VP – International Fund – Class I (ACVPInt)

    American Century VP – Ultra^® Fund – Class I (ACVPUltra)*

    American Century VP – Value Fund – Class I (ACVPVal)

Portfolios of the Credit Suisse Trust (Credit Suisse Trust);

    Credit Suisse Trust – Global Small Cap Portfolio (CSGPVen)*

        (formerly Credit Suisse Trust – Global Post-Venture Capital Portfolio)

    Credit Suisse Trust – International Focus Portfolio (CSIntFoc)*

    Credit Suisse Trust – Large Cap Value Portfolio (CSLCapV)

Funds of the Dreyfus Investment Portfolios (Dreyfus IP);

    Dreyfus IP – Small Cap Stock Index Portfolio – Service Class (DrySmCapIxS)

Portfolios of Dreyfus Investor Inc. (Dreyfus Investor, Inc.);

    Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx)

    Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)

Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);

    Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVIFApp)

Portfolios of the Federated Insurance Series (Federated IS);

    Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd)

Portfolios of the Fidelity^® Variable Insurance Products (Fidelity^® VIP);

    Fidelity^® VIP – Equity-Income Portfolio: Service Class (FidVIPEIS)

    Fidelity^® VIP – Growth Portfolio: Service Class (FidVIPGrS)

    Fidelity^® VIP – High Income Portfolio: Service Class (FidVIPHIS)

    Fidelity^® VIP – Overseas Portfolio: Service Class (FidVIPOvS)

Portfolios of the Fidelity^® Variable Insurance Products (Fidelity^® VIP II);

    Fidelity^® VIP II – Contrafund^® Portfolio: Service Class (FidVIPConS)

Portfolios of the Fidelity^® Variable Insurance Products (Fidelity^® VIP III);

    Fidelity^® VIP III – Growth Opportunities Portfolio: Service Class (FidVIPGrOpS)

    Fidelity^® VIP III – Value Strategies Portfolio: Service Class (FidVIPVaIS)

(Continued)

23

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

Funds of the Gartmore Variable Insurance Trust (Gartmore GVIT)

(Gartmore is an affiliate of the Company);

    Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I (GVITDMidCapI)

    Gartmore GVIT – Emerging Markets Fund: Class I (GVITEmMrkts)

    Gartmore GVIT – Federated High Income Bond Fund: Class I (GVITFHiInc)

    Gartmore GVIT – Global Financial Services Fund: Class I (GVITGlFin1)*

    Gartmore GVIT – Global Health Sciences Fund: Class I (GVITGlHlth)

    Gartmore GVIT – Global Technology and Communications Fund: Class I (GVITGlTech)

    Gartmore GVIT – Global Utilities Fund: Class I (GVITGlUtl1)

    Gartmore GVIT – Government Bond Fund: Class I (GVITGvtBd)

    Gartmore GVIT – Growth Fund – Class I (GVITGrowth)

    Gartmore GVIT – International Growth Fund: Class I (GVITIntGro)

    Gartmore GVIT – J.P. Morgan Balanced Fund – Class I (GVITJPBal)

    Gartmore GVIT – Mid Cap Growth Fund: Class I (GVITSMdCpGr)

    Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt)

    Gartmore GVIT – Nationwide^® Fund: Class I (GVITNWFund)

    Gartmore GVIT – Nationwide^® Leaders Fund: Class I (GVITLead)*

    Gartmore GVIT – Small Cap Growth Fund: Class I (GVITSmCapGr)

    Gartmore GVIT – Small Cap Value Fund: Class I (GVITSmCapVal)

    Gartmore GVIT – Small Company Fund: Class I (GVITSmComp)

    Gartmore GVIT – U.S. Growth Leaders Fund: Class I (GVITUSGro)

    Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I (GVITVKMultiSec)

    Gartmore GVIT – Van Kampen Value Fund – Class I (GVITCVal)

    Gartmore GVIT – Worldwide Leaders Fund: Class I (GVITWLead)

Portfolios of the Janus Aspen Series (Janus AS);

    Janus AS – Forty Portfolio – Service Shares (JanCapAp)

        (formerly Janus Aspen Series – Capital Appreciation Portfolio – Service Shares)

    Janus AS – Global Technology Portfolio – Service Shares (JanGlTech)

    Janus AS – International Growth Portfolio – Service Shares (JanIntGro)

Portfolios of the Neuberger Berman Advisers Management Trust (Neuberger Berman AMT);

    Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBAMTGuard)

    Neuberger Berman AMT – Partners Portfolio^® – I Class Shares (NBAMTPart)

    Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares (NBAMTMCGr)

Portfolios of the Oppenheimer Funds (Oppenheimer Funds);

    Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class (OppAggGro)

    Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class (OppCapAp)

    Oppenheimer Funds – Global Securities Fund/VA – Initial Class (OppGlSec)

    Oppenheimer Funds – Main Street Fund^®/VA – Initial Class (OppMSFund)

Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);

    Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt)

    Van Eck WIT – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs)

Funds of Van Kampen Universal Institutional Funds, Inc. (Van Kampen UIF);

    Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKEmMkt)

    Van Kampen UIF – Mid Cap Growth Portfolio – Class I (VKMidCapG)

    Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUSRealEst)

Portfolios of the Wells Fargo Advantage Variable Trust Funds^SM (Wells Fargo Advantage VTF^SM);

    Wells Fargo VTF^SM – Wells Fargo Advantage Opportunity Fund VT (StOpp2)

        (formerly Strong Variable Insurance Funds, Inc. – Strong Opportunity Fund II, Inc.)

At December 31, 2005, contract owners were invested in all of the above funds except for those indicated with an asterisk (*). The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see note 2).

(Continued)

24

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

The accompanying financial statements include only contract owners’ purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company.

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

Some of the underlying mutual funds have been established by investment advisers which manage publicly traded mutual funds having similar names and investment objectives. While some of the underlying mutual funds may be similar to, and may in fact be modeled after, publicly traded mutual funds, the underlying mutual funds are not otherwise directly related to any publicly traded mutual fund. Consequently, the investment performance of publicly traded mutual funds and any corresponding underlying mutual funds may differ substantially.

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued on the closing net asset value per share at December 31, 2005 of such funds, which value their investment securities at fair value. Fund purchases and sales are accounted for on the trade date (date the order to buy or sell is executed). The cost of investments sold is determined on a specific identification basis, and dividends (which include capital gain distributions) are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code.

The Company does not provide for income taxes within the Account. Taxes are the responsibility of the contract owner upon termination or withdrawal.

(e) Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S generally accepted accounting principles may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(2) Expenses

The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is surrendered, the company will, with certain exceptions, deduct from a contract owners’ contract value a contingent deferred sales charge not to exceed 8% of purchase payments surrendered. After 5 years, such charge will decline 1% per year. After the purchase payment has been held in the contract for 13 years, the charge is 0%. No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the Company.

The Company deducts a mortality and expense risk charge assessed through the daily unit value calculation equal to an annualized rate of 1.40%.

(Continued)

25

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

(3) Related Party Transactions

The Company performs various services on behalf of the Mutual Fund Companies in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, preparation, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company.

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. These transfers are the result of the contract owner executing fund exchanges. Fund exchanges from the Account to the fixed account are included in surrenders, and fund exchanges from the fixed account to the Account are included in purchase payments received from contact owners, as applicable, on the accompanying Statements of Change in Contract Owners’ Equity.

For the periods ended December 31, 2005 and 2004, total transfers into the Account from the fixed account were $38,190 and $44,880, respectively, and total transfers from the Account to the fixed account were $120,613 and $34,630, respectively.

(4) Death Benefits

Death benefit proceeds result in a redemption of the contract value from the Account and payment of those proceeds, less any policy charges, to the legal beneficiary. In the event that the guaranteed death benefit exceeds the contract value on the date of death, the excess is paid by the Company’s general account.

(Continued)

26

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

(5) Financial Highlights

The following is a summary of units, unit fair values and contract owners’ equity outstanding for variable annuity contracts as of the end of the periods indicated, and the contract expense rate, investment income ratio and total return for each period in the five year period ended December 31, 2005.

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP – Income & Growth Fund – Class I
2005	1.40%	5,652	$	10.525484	$	59,490	1.99%	3.17%
2004	1.40%	6,392		10.202044		65,211	1.40%	11.41%
2003	1.40%	6,386		9.157113		58,477	1.53%	27.54%
2002	1.40%	9,108		7.179590		65,392	1.08%	-20.50%
2001	1.40%	9,269		9.031047		83,709	0.88%	-9.64%
American Century VP – International Fund – Class I
2005	1.40%	6,208		10.224538		63,474	1.22%	11.67%
2004	1.40%	7,430		9.155754		68,027	0.56%	13.32%
2003	1.40%	7,302		8.079877		58,999	0.92%	22.77%
2002	1.40%	12,849		6.581398		84,564	0.78%	-21.49%
2001	1.40%	12,788		8.382669		107,198	0.10%	-30.17%
American Century VP – Value Fund – Class I
2005	1.40%	6,278		16.324353		102,484	0.85%	3.57%
2004	1.40%	4,822		15.762031		76,005	0.97%	12.73%
2003	1.40%	4,225		13.981741		59,073	0.93%	27.15%
2002	1.40%	3,324		10.995838		36,550	1.14%	-13.84%
2001	1.40%	3,962		12.762833		50,566	0.00%	11.23%
Credit Suisse Trust – Large Cap Value Portfolio
2005	1.40%	420		11.703385		4,915	0.78%	6.63%
2004	1.40%	420		10.975290		4,610	0.54%	9.78%
2003	1.40%	419		9.997094		4,189	0.77%	23.41%
2002	1.40%	419		8.100504		3,394	1.02%	-24.17%
2001	1.40%	419		10.682924		4,476	0.00%	-0.48%
Dreyfus IP – European Equity Portfolio
2001	1.40%	523		8.783001		4,594	0.72%	-29.14%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	1.40%	276		13.130152		3,624	0.00%	5.75%
2004	1.40%	1,438		12.416593		17,855	1.48%	20.19%
2002	1.40%	509		7.603573		3,870	0.31%	-23.96%	05/01/02
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	1.40%	27,430		9.664366		265,094	1.61%	3.23%
2004	1.40%	29,210		9.361970		273,463	1.82%	9.09%
2003	1.40%	28,983		8.581727		248,724	1.49%	26.57%
2002	1.40%	32,559		6.780318		220,760	1.34%	-23.45%
2001	1.40%	30,781		8.857475		272,642	1.45%	-13.42%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	1.40%	9,638		7.482082		72,112	0.00%	2.17%
2004	1.40%	11,256		7.323241		82,430	0.40%	4.72%
2003	1.40%	11,395		6.992920		79,684	0.11%	24.24%
2002	1.40%	13,880		5.628516		78,124	0.22%	-29.94%
2001	1.40%	13,983		8.034090		112,341	0.07%	-23.67%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	1.40%	1,306		10.071157		13,153	0.02%	2.92%
2004	1.40%	1,908		9.785354		18,670	1.74%	3.58%
2003	1.40%	1,827		9.447547		17,261	0.84%	19.47%
2002	1.40%	4,480		7.907593		35,426	1.09%	-17.88%
2001	1.40%	4,671		9.629488		44,979	0.95%	-10.59%

(Continued)

27

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Federated IS – Quality Bond Fund II – Primary Shares
2005	1.40%	3,676	$	13.116237	$	48,215	3.26%	-0.12%
2004	1.40%	3,176		13.131591		41,706	4.02%	2.17%
2003	1.40%	3,450		12.852793		44,342	4.88%	3.18%
2002	1.40%	11,566		12.456595		144,073	3.14%	7.78%
2001	1.40%	9,786		11.557776		113,104	2.65%	6.49%
Fidelity® VIP – Equity-Income Portfolio: Service Class
2005	1.40%	7,136		12.455145		88,880	1.62%	4.28%
2004	1.40%	8,558		11.943782		102,215	1.38%	9.82%
2003	1.40%	7,960		10.875446		86,569	1.56%	28.40%
2002	1.40%	7,940		8.470071		67,252	1.68%	-18.16%
2001	1.40%	7,182		10.349678		74,331	1.44%	-6.43%
Fidelity® VIP – Growth Portfolio: Service Class
2005	1.40%	17,084		8.335000		142,395	0.40%	4.20%
2004	1.40%	19,908		7.999204		159,248	0.17%	1.82%
2003	1.40%	21,172		7.856387		166,335	0.19%	30.92%
2002	1.40%	21,165		6.000703		127,005	0.15%	-31.18%
2001	1.40%	22,131		8.719157		192,964	0.00%	-18.89%
Fidelity® VIP – High Income Portfolio: Service Class
2005	1.40%	682		9.592754		6,542	12.14%	1.09%
2004	1.40%	1,494		9.489161		14,177	12.43%	7.94%
2003	1.40%	2,279		8.791518		20,036	3.12%	25.19%
2002	1.40%	1,450		7.022305		10,182	11.21%	2.17%
2001	1.40%	1,699		6.873318		11,678	16.19%	-13.14%
Fidelity® VIP – Overseas Portfolio: Service Class
2005	1.40%	3,604		11.161905		40,228	0.58%	17.31%
2004	1.40%	4,418		9.514784		42,036	0.91%	11.90%
2003	1.40%	3,462		8.502985		29,437	0.75%	41.20%
2002	1.40%	3,686		6.021853		22,197	0.68%	-21.46%
2001	1.40%	4,667		7.667226		35,783	4.49%	-22.38%
Fidelity® VIP II – Contrafund® Portfolio: Service Class
2005	1.40%	11,450		13.852399		158,610	0.19%	15.22%
2004	1.40%	9,550		12.022889		114,819	0.24%	13.73%
2003	1.40%	8,790		10.571894		92,927	0.36%	26.56%
2002	1.40%	9,529		8.353442		79,600	0.75%	-10.69%
2001	1.40%	9,921		9.353696		92,798	0.79%	-13.60%
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class
2005	1.40%	2,144		8.157700		17,490	0.82%	7.34%
2004	1.40%	3,660		7.599714		27,815	0.47%	5.56%
2003	1.40%	3,660		7.199376		26,350	0.63%	27.85%
2002	1.40%	3,807		5.631197		21,438	0.90%	-23.01%
2001	1.40%	3,807		7.314276		27,845	0.26%	-15.64%
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	1.40%	508		13.158776		6,685	0.00%	1.13%
2004	1.40%	678		13.011385		8,822	0.00%	12.40%
2003	1.40%	677		11.575660		7,837	0.00%	55.60%
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	1.40%	4,862		18.076864		87,890	1.00%	10.53%
2004	1.40%	6,170		16.354103		100,905	0.57%	14.11%
2003	1.40%	4,717		14.331619		67,602	0.48%	32.77%
2002	1.40%	4,334		10.794460		46,783	0.36%	-16.49%
2001	1.40%	4,929		12.926038		63,712	0.68%	-2.70%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	1.40%	2,588		17.213353		44,548	0.62%	30.79%
2004	1.40%	1,542		13.161389		20,295	0.85%	19.05%
2003	1.40%	2,496		11.054993		27,593	0.61%	62.95%
2002	1.40%	2,130		6.784099		14,450	0.22%	-16.42%
2001	1.40%	1,004		8.116661		8,149	1.20%	-6.52%

(Continued)

28

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	1.40%	2,390	$	12.813161	$	30,623	8.15%	0.95%
2004	1.40%	1,494		12.692461		18,963	7.35%	8.56%
2003	1.40%	1,776		11.692144		20,765	7.51%	20.56%
2002	1.40%	1,751		9.698125		16,981	8.97%	1.78%
2001	1.40%	1,489		9.528493		14,188	14.75%	2.75%
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	1.40%	512		12.667193		6,486	0.00%	6.94%
2004	1.40%	484		11.845553		5,733	0.00%	6.36%
2003	1.40%	179		11.137212		1,994	0.00%	34.80%
2002	1.40%	441		8.262252		3,644	0.00%	-17.38%
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	1.40%	944		2.950302		2,785	0.00%	-1.91%
2004	1.40%	944		3.007625		2,839	0.00%	2.85%
2003	1.40%	12,962		2.924207		37,904	0.00%	53.06%
2002	1.40%	1,514		1.910471		2,892	0.67%	-43.58%
2001	1.40%	1,514		3.386452		5,127	0.00%	-43.53%
Gartmore GVIT – Global Utilities Fund: Class I
2005	1.40%	516		14.149889		7,301	1.93%	4.91%
Gartmore GVIT – Government Bond Fund: Class I
2005	1.40%	6,532		13.300351		86,878	3.76%	1.82%
2004	1.40%	6,538		13.062379		85,402	5.18%	1.82%
2003	1.40%	8,264		12.829335		106,022	3.31%	0.57%
2002	1.40%	21,004		12.756340		267,934	4.41%	9.43%
2001	1.40%	14,698		11.657054		171,335	6.35%	5.75%
Gartmore GVIT – Growth Fund – Class I
2005	1.40%	6,428		5.525723		35,519	0.08%	5.01%
2004	1.40%	6,428		5.261896		33,823	0.30%	6.64%
2003	1.40%	7,562		4.934135		37,312	0.02%	30.88%
2002	1.40%	10,487		3.769867		39,535	0.00%	-29.72%
2001	1.40%	10,377		5.364127		55,664	0.00%	-29.15%
Gartmore GVIT – International Growth Fund: Class I
2005	1.40%	1,072		9.380789		10,056	0.77%	28.39%
2003	1.40%	329		6.489005		2,135	0.00%	33.73%
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I
2005	1.40%	5,394		10.256808		55,325	1.95%	1.11%
2004	1.40%	6,450		10.144108		65,429	1.98%	6.97%
2003	1.40%	6,213		9.482905		58,917	1.77%	16.76%
2002	1.40%	6,348		8.121890		51,558	2.59%	-13.54%
2001	1.40%	4,320		9.393922		40,582	3.89%	-5.03%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	1.40%	2,012		8.613187		17,330	0.00%	8.21%
2004	1.40%	1,900		7.959694		15,123	0.00%	13.72%
2003	1.40%	1,932		6.999166		13,522	0.00%	38.18%
2002	1.40%	2,044		5.065409		10,354	0.00%	-37.90%
2001	1.40%	5,127		8.156718		41,819	0.00%	-31.29%
Gartmore GVIT – Money Market Fund – Class I
2005	1.40%	11,904		10.736889		127,812	2.66%	1.23%
2004	1.40%	15,118		10.605947		160,341	0.75%	-0.60%
2003	1.40%	20,183		10.669965		215,352	0.63%	-0.78%
2002	1.40%	23,287		10.754184		250,433	1.12%	-0.21%
2001	1.40%	37,457		10.776329		403,649	3.02%	2.15%
Gartmore GVIT – Nationwide® Fund: Class I
2005	1.40%	9,236		10.652647		98,388	0.90%	5.94%
2004	1.40%	10,992		10.055179		110,527	1.27%	8.21%
2003	1.40%	11,821		9.291859		109,839	0.56%	25.73%
2002	1.40%	12,545		7.390371		92,712	0.87%	-18.51%
2001	1.40%	12,848		9.069269		116,522	1.00%	-13.06%

(Continued)

29

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2003	1.40%	379	$	10.353389	$	3,924	0.06%	23.64%
Gartmore GVIT – Nationwide® Strategic Value Fund – Class I
2003	1.40%	377		11.012816		4,152	0.04%	36.87%
2002	1.40%	377		8.046365		3,033	0.03%	-26.41%
2001	1.40%	377		10.933371		4,122	0.47%	-4.62%
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	1.40%	1,360		12.435369		16,912	0.00%	6.58%
2004	1.40%	2,538		11.667420		29,612	0.00%	11.83%
2003	1.40%	2,912		10.433337		30,382	0.00%	32.39%
2002	1.40%	2,912		7.880865		22,949	0.00%	-34.22%
2001	1.40%	4,240		11.981329		50,801	0.00%	-12.10%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	1.40%	7,546		20.120403		151,829	0.07%	1.63%
2004	1.40%	8,304		19.796908		164,394	0.00%	15.66%
2003	1.40%	12,754		17.116946		218,310	0.00%	54.66%
2002	1.40%	8,918		11.067332		98,698	0.01%	-28.18%
2001	1.40%	9,815		15.410765		151,257	0.04%	26.47%
Gartmore GVIT – Small Company Fund: Class I
2005	1.40%	6,670		19.190538		128,001	0.00%	10.75%
2004	1.40%	6,382		17.327879		110,587	0.00%	17.36%
2003	1.40%	6,118		14.765146		90,333	0.00%	39.04%
2002	1.40%	7,826		10.619233		83,106	0.00%	-18.49%
2001	1.40%	8,221		13.027737		107,101	0.12%	-8.02%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2002	1.40%	516		2.141179		1,105	0.00%	-43.66%
2001	1.40%	1,668		3.800451		6,339	0.00%	-39.89%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	1.40%	830		14.963360		12,420	0.00%	10.41%
2004	1.40%	1,452		13.552459		19,678	0.00%	10.85%
2003	1.40%	2,253		12.226343		27,546	0.00%	50.03%
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	1.40%	4,068		13.506165		54,943	4.10%	0.75%
2004	1.40%	1,714		13.405165		22,976	4.83%	5.04%
2003	1.40%	2,029		12.761661		25,893	5.41%	10.55%
2002	1.40%	2,053		11.544091		23,700	5.32%	5.71%
2001	1.40%	2,130		10.920881		23,261	7.13%	2.72%
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	1.40%	5,712		9.908509		56,597	1.67%	2.79%
2004	1.40%	3,900		9.639397		37,594	1.52%	15.85%
2003	1.40%	1,127		8.320258		9,377	1.32%	29.59%
2002	1.40%	1,127		6.420208		7,236	1.27%	-26.19%
2001	1.40%	839		8.698632		7,298	1.74%	-13.39%
Gartmore GVIT – Worldwide Leaders Fund: Class I
2005	1.40%	1,268		10.441294		13,240	0.78%	17.67%
2004	1.40%	724		8.873195		6,424	0.00%	14.05%
2003	1.40%	724		7.780309		5,633	0.00%	34.16%
2002	1.40%	863		5.799437		5,005	1.20%	-26.44%
2001	1.40%	863		7.883471		6,803	3.25%	-19.95%
Janus AS – Forty Portfolio – Service Shares
2005	1.40%	23,350		7.953387		185,712	0.01%	11.00%
2004	1.40%	24,508		7.165447		175,611	0.02%	16.33%
2003	1.40%	26,317		6.159668		162,104	0.24%	18.56%
2002	1.40%	27,048		5.195269		140,522	0.31%	-17.10%
2001	1.40%	29,207		6.266779		183,034	0.95%	-22.92%

(Continued)

30

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Janus AS – Global Technology Portfolio – Service Shares
2005	1.40%	9,378	$	3.685735	$	34,565	0.00%	10.00%
2004	1.40%	11,626		3.350546		38,953	0.00%	-0.83%
2003	1.40%	13,356		3.378652		45,125	0.00%	44.44%
2002	1.40%	23,431		2.339124		54,808	0.00%	-41.75%
2001	1.40%	23,812		4.015999		95,629	0.53%	-38.20%
Janus AS – International Growth Portfolio – Service Shares
2005	1.40%	13,104		9.119582		119,503	1.10%	30.11%
2004	1.40%	11,970		7.009034		83,898	0.83%	17.04%
2003	1.40%	13,563		5.988741		81,225	0.99%	32.66%
2002	1.40%	14,399		4.514191		65,000	0.65%	-26.79%
2001	1.40%	14,723		6.166223		90,785	0.80%	-24.50%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	1.40%	648		12.931987		8,380	0.15%	6.88%
2004	1.40%	648		12.099735		7,841	0.13%	14.19%
2003	1.40%	648		10.595804		6,866	0.71%	29.92%
2002	1.40%	942		8.155738		7,683	0.79%	-27.48%
2001	1.40%	1,273		11.246113		14,316	0.23%	-2.90%
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares
2005	1.40%	4,544		11.381961		51,720	0.00%	12.15%
2004	1.40%	5,436		10.148514		55,167	0.00%	14.68%
2003	1.40%	6,039		8.849433		53,442	0.00%	26.28%
2002	1.40%	6,789		7.007798		47,576	0.00%	-30.33%
2001	1.40%	8,072		10.058649		81,193	0.00%	-25.71%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	1.40%	5,338		14.110055		75,319	1.11%	16.40%
2004	1.40%	3,574		12.122204		43,325	0.01%	17.31%
2003	1.40%	1,557		10.333462		16,089	0.00%	33.20%
2002	1.40%	1,350		7.757913		10,473	0.57%	-25.21%
2001	1.40%	1,636		10.372420		16,969	0.43%	-4.20%
Oppenheimer Funds – Aggressive Growth Fund/VA - Initial Class
2005	1.40%	7,570		9.931444		75,181	0.00%	10.76%
2004	1.40%	8,638		8.966685		77,454	0.00%	18.10%
2003	1.40%	9,130		7.592423		69,319	0.00%	23.83%
2002	1.40%	13,157		6.131117		80,667	0.67%	-28.80%
2001	1.40%	13,940		8.611534		120,045	1.25%	-32.24%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	1.40%	12,090		11.091470		134,096	0.89%	3.63%
2004	1.40%	11,544		10.702809		123,553	0.32%	5.44%
2003	1.40%	9,442		10.150676		95,843	0.46%	29.11%
2002	1.40%	13,977		7.861902		109,886	0.60%	-27.88%
2001	1.40%	14,674		10.901827		159,973	0.75%	-13.81%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	1.40%	8,044		11.823860		95,111	1.02%	12.71%
2004	1.40%	7,178		10.490302		75,299	1.27%	17.50%
2003	1.40%	7,446		8.928255		66,480	0.68%	41.02%
2002	1.40%	6,802		6.331165		43,065	0.57%	-23.23%
2001	1.40%	6,429		8.246547		53,017	1.50%	-13.28%
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	1.40%	20,618		10.005945		206,303	1.33%	4.50%
2004	1.40%	21,368		9.575362		204,606	0.82%	7.93%
2003	1.40%	22,174		8.872059		196,729	0.98%	24.95%
2002	1.40%	23,246		7.100693		165,063	0.76%	-19.94%
2001	1.40%	23,752		8.868722		210,650	0.61%	-11.43%

(Continued)

31

NATIONWIDE VARIABLE ACCOUNT-10 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	1.40%	292	$	20.377122	$	5,950	0.91%	30.15%
2004	1.40%	322		15.656055		5,041	0.55%	24.13%
2003	1.40%	320		12.612719		4,036	0.07%	52.03%
2002	1.40%	172		8.296039		1,427	0.18%	-4.26%
2001	1.40%	97		8.665393		841	0.00%	-3.19%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	1.40%	810		25.062407		20,301	0.31%	49.56%
2004	1.40%	772		16.757883		12,937	0.21%	22.49%
2003	1.40%	383		13.708625		5,250	0.82%	43.05%
2002	1.40%	4,018		9.583147		38,505	0.74%	-4.19%
2001	1.40%	3,018		10.002743		30,188	1.14%	-11.71%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	1.40%	126		22.014894		2,774	0.00%	10.68%
2003	1.40%	188		18.328077		3,446	0.00%	26.08%
Van Kampen UIF – Mid Cap Growth Portfolio – Class I
2005	1.40%	380		7.911472		3,006	0.00%	15.93%
2004	1.40%	416		6.824496		2,839	0.00%	19.89%
2001	1.40%	587		5.999237		3,522	0.00%	-30.31%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	1.40%	2,730		27.631171		75,433	0.87%	15.42%
2004	1.40%	6,456		23.940083		154,557	1.69%	34.49%
2003	1.40%	5,088		17.801092		90,572	0.00%	35.59%
2002	1.40%	5,607		13.128753		73,613	4.62%	-2.18%
2001	1.40%	2,010		13.420828		26,976	6.58%	8.30%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	1.40%	7,880		11.228889		88,484	0.00%	6.38%
2004	1.40%	9,750		10.555564		102,917	0.00%	16.57%
2003	1.40%	9,038		9.055451		81,843	0.08%	35.09%
2002	1.40%	9,051		6.703248		60,671	0.37%	-27.84%
2001	1.40%	9,952		9.290050		92,455	0.66%	-5.06%
Contract Owners’ Equity Total By Year
2005					$	3,320,112
2004					$	3,291,752
2003					$	3,093,116
2002					$	2,940,894
2001					$	3,686,330

*	This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are assessed through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.
**	This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, if any, that result in direct reductions to the contractholder accounts either through reductions in unit values or redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.
***	This represents the total return for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit value for expenses assessed. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the Account. The total return is calculated for the period indicated or from the effective date through the end of the period.

32

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

    Contract Owners of Nationwide Variable Account-10:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide Variable Account-10 (comprised of the sub-accounts listed in note 1(b)) (collectively, “the Account”) as of December 31, 2005, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for the periods indicated herein. These financial statements and financial highlights are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2005, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Account as of December 31, 2005, and the results of its operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Columbus, Ohio

March 8, 2006

33

NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY	PRSRT STD
HOME OFFICE: ONE NATIONWIDE PLAZA • COLUMBUS, OHIO 43215-2220	U.S. POSTAGE
	PAID
	NATIONWIDE

Nationwide^® is a registered federal service mark of Nationwide Mutual Insurance Company.