Nationwide^® Variable Account-10

  December 31, 2007

    

Annual Report

        

Nationwide Life Insurance Company

Home Office: Columbus, Ohio    

APO  –  4740   –  12/07

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2007

Assets:
Investments at fair value:
American Century VP – Income & Growth Fund – Class I (ACVPIncGr)
8,082 shares (cost $69,432)	$	68,374
American Century VP – International Fund – Class I (ACVPInt)
6,918 shares (cost $70,520)		82,050
American Century VP – Value Fund – Class I (ACVPVal)
15,721 shares (cost $136,345)		117,435
Credit Suisse Trust – Large Cap Value Portfolio (CSTLCapV)
458 shares (cost $7,268)		6,179
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap)
227 shares (cost $4,207)		4,004
Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx)
7,775 shares (cost $280,966)		290,788
Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVApp)
274 shares (cost $11,623)		12,301
Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd)
3,745 shares (cost $42,268)		42,463
Fidelity® VIP – Equity-Income Portfolio – Service Class (FidVIPEIS)
4,826 shares (cost $125,013)		114,966
Fidelity® VIP – Growth Portfolio – Service Class (FidVIPGrS)
3,395 shares (cost $122,098)		152,733
Fidelity® VIP – High Income Portfolio – Service Class (FidVIPHIS)
4,477 shares (cost $28,646)		26,637
Fidelity® VIP – Overseas Portfolio – Service Class (FidVIPOvS)
2,089 shares (cost $49,666)		52,693
Fidelity® VIP II – Contrafund® Portfolio – Service Class (FidVIPConS)
7,491 shares (cost $230,540)		208,251
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class (FidVIPGrOpS)
986 shares (cost $17,937)		22,015
Fidelity® VIP III – Value Strategies Portfolio – Service Class (FidVIPVaIS)
770 shares (cost $10,298)		9,658
Janus Aspen Series – Forty Portfolio – Service Shares (JAspForty)
6,046 shares (cost $184,437)		246,666
Janus Aspen Series – Global Technology Portfolio – Service Shares (JAspGlTechS)
8,375 shares (cost $35,726)		43,380
Janus Aspen Series – International Growth Portfolio – Service Shares (JAspIntGroS)
2,881 shares (cost $150,453)		185,830
Nationwide VIT – Federated High Income Bond Fund – Class I (NVITFHiInc)
3,274 shares (cost $26,108)		25,010
Nationwide VIT – Gartmore Emerging Markets Fund – Class I (NVITEmMrkts)
5,087 shares (cost $92,082)		115,023

(Continued)

2

NATIONWIDE VARIABLE ACCOUNT-10

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

Nationwide VIT – Gartmore Global Utilities Fund – Class I (NVITGlUtl) 692 shares (cost $9,029)	$	8,490
Nationwide VIT – Gartmore International Growth Fund – Class I (NVITIntGro) 3,519 shares (cost $42,890)		49,478
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I (NVITWLead) 2,770 shares (cost $44,254)		52,594
Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd) 6,788 shares (cost $77,251)		78,941
Nationwide VIT – Growth Fund – Class I (NVITGrowth) 3,589 shares (cost $43,761)		52,037
Nationwide VIT – J.P. Morgan Balanced Fund – Class I (NVITJPBal) 5,813 shares (cost $64,132)		63,650
Nationwide VIT – Mid Cap Growth Fund – Class I (NVITMdCpGr) 504 shares (cost $15,255)		16,409
Nationwide VIT – Mid Cap Index Fund – Class I (NVITMidCap) 4,816 shares (cost $90,583)		92,372
Nationwide VIT – Money Market Fund – Class I (NVITMyMkt) 47,314 shares (cost $47,314)		47,314
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I (NVITSmCapGr) 1,063 shares (cost $17,453)		19,138
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I (NVITSmCapVal) 15,559 shares (cost $189,858)		153,726
Nationwide VIT – Multi-Manager Small Company Fund – Class I (NVITSmComp) 5,491 shares (cost $137,021)		121,962
Nationwide VIT – Nationwide Fund – Class I (NVITNWFund) 8,629 shares (cost $115,516)		117,261
Nationwide VIT – Van Kampen Comstock Value Fund – Class I (NVITVKVal) 3,390 shares (cost $42,606)		38,986
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I (NVITMltSec) 9,244 shares (cost $90,846)		91,147
Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBTAGuard) 470 shares (cost $9,245)		9,919
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares (NBTAMCGr) 1,903 shares (cost $44,422)		54,248
Neuberger Berman AMT – Partners Portfolio – Class I (NBTAPart) 1,082 shares (cost $22,488)		22,478
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares (OppCapAp) 3,507 shares (cost $145,610)		165,467
Oppenheimer VAF – Global Securities Fund – Non-Service Shares (OppGlSec) 2,392 shares (cost $87,672)		87,531
Oppenheimer VAF – Main Street® – Non-Service Shares (OppMSt) 6,241 shares (cost $154,373)		159,821
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares (OppMidCap) 1,057 shares (cost $53,997)		57,138
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares (DrySRGro) 1,927 shares (cost $55,018)		58,784

(Continued)

3

NATIONWIDE VARIABLE ACCOUNT-10

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

Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class (VEWrldEMkt) 507 shares (cost $12,132)	$	14,058
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class (VEWrldHAs)     880 shares (cost $27,489)		36,250
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKUEmMkt)     816 shares (cost $7,358)		6,960
Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUUSRE)     2,809 shares (cost $81,564)		61,941
Wells Fargo AVT – Opportunity FundSM (WFVOpp)     4,604 shares (cost $109,865)		101,419
Total investments		3,665,975
Accounts receivable – Fidelity® VIP – Growth Portfolio – Service Class (FidVIPGrS)		4,546
Accounts receivable – Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd)		7,377
Accounts receivable – Oppenheimer VAF – Global Securities Fund – Non-Service Shares (OppGlSec)		8,312
Accounts receivable – Oppenheimer VAF – Main Street® – Non-Service Shares (OppMSt)		23,975
Accounts receivable – The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares (DrySRGro)		6,114
Accounts receivable – Van Kampen UIF – Mid Cap Growth Portfolio – Class I (VKUMCpGro)		4,052
Total assets		3,720,351
Liabilities:
Accounts payable – Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx)		5,984
Accounts payable – Fidelity® VIP III – Growth Opportunities Portfolio – Service Class (FidVIPGrOpS)		4,439
Accounts payable – Nationwide VIT – Growth Fund – Class I (NVITGrowth)		8,234
Accounts payable – Nationwide VIT – Mid Cap Growth Fund – Class I (NVITMdCpGr)		3,606
Accounts payable – Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares (OppCapAp)		11,823
Accounts payable – Oppenheimer VAF – Mid Cap Fund – Non-Service Shares (OppMidCap)		21,627
Accounts payable		58
Total liabilities		55,771
Contract owners’ equity (note 4)	$	3,664,580

See accompanying notes to financial statements.

4

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS

Year Ended December 31, 2007

Investment activity:		Total		ACVPIncGr		ACVPInt		ACVPVal		CSTLCapV		DryIPSmCap		DryStkIx		DryVApp
Reinvested dividends	$	47,395		1,276		509		1,912		73		16		5,164		239
Mortality and expense risk charges (note 2)		(51,698	)	(984	)	(1,076	)	(1,726	)	(75	)	(58	)	(4,184	)	(203	)
Net investment income (loss)		(4,303	)	292		(567	)	186		(2	)	(42	)	980		36
Proceeds from mutual fund shares sold		4,368,306		70,061		82,639		99,823		5,208		4,143		333,057		19,072
Cost of mutual fund shares sold		(3,791,599	)	(56,913	)	(61,420	)	(90,083	)	(3,819	)	(4,156	)	(283,884	)	(16,141	)
Realized gain (loss) on investments		576,707		13,148		21,219		9,740		1,389		(13	)	49,173		2,931
Change in unrealized gain (loss) on investments		(418,168	)	(14,461	)	(8,883	)	(29,357	)	(2,500	)	(199	)	(37,580	)	(2,007	)
Net gain (loss) on investments		158,539		(1,313	)	12,336		(19,617	)	(1,111	)	(212	)	11,593		924
Reinvested capital gains		178,898		–		–		9,915		1,076		172		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	333,134		(1,021	)	11,769		(9,516	)	(37	)	(82	)	12,573		960
Investment activity:		FedQualBd		FidVIPEIS		FidVIPGrS		FidVIPHIS		FidVIPOvS		FidVIPConS		FidVIPGrOpS		FidVIPVaIS
Reinvested dividends	$	2,312		2,054		924		2,206		1,903		1,676		–		87
Mortality and expense risk charges (note 2)		(590	)	(1,660	)	(2,065	)	(326	)	(856	)	(2,708	)	(223	)	(137	)
Net investment income (loss)		1,722		394		(1,141	)	1,880		1,047		(1,032	)	(223	)	(50	)
Proceeds from mutual fund shares sold		62,355		148,706		176,739		24,689		90,007		168,029		22,212		9,426
Cost of mutual fund shares sold		(62,791	)	(135,294	)	(178,706	)	(25,422	)	(73,263	)	(137,177	)	(21,354	)	(9,194	)
Realized gain (loss) on investments		(436	)	13,412		(1,967	)	(733	)	16,744		30,852		858		232
Change in unrealized gain (loss) on investments		257		(23,480	)	35,649		(1,173	)	(12,568	)	(52,217	)	2,475		(861	)
Net gain (loss) on investments		(179	)	(10,068	)	33,682		(1,906	)	4,176		(21,365	)	3,333		(629	)
Reinvested capital gains		–		9,654		125		–		4,719		50,047		–		1,049
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,543		(20	)	32,666		(26	)	9,942		27,650		3,110		370

(Continued)

5

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		JAspForty		JAspGlTechS		JAspIntGroS		NVITFHiInc		NVITEmMrkts		NVITGlUtl		NVITIntGro		NVITWLead
Reinvested dividends	$	376		138		753		1,827		637		180		171		197
Mortality and expense risk charges (note 2)		(2,910	)	(557	)	(2,445	)	(365	)	(1,257	)	(96	)	(616	)	(687	)
Net investment income (loss)		(2,534	)	(419	)	(1,692	)	1,462		(620	)	84		(445	)	(490	)
Proceeds from mutual fund shares sold		231,223		37,247		214,618		41,861		59,588		6,371		44,510		45,375
Cost of mutual fund shares sold		(197,724	)	(38,107	)	(139,419	)	(40,788	)	(37,774	)	(5,509	)	(36,088	)	(34,238	)
Realized gain (loss) on investments		33,499		(860	)	75,199		1,073		21,814		862		8,422		11,137
Change in unrealized gain (loss) on investments		30,116		8,521		(33,094	)	(1,840	)	1,764		(1,361	)	(1,678	)	(2,531	)
Net gain (loss) on investments		63,615		7,661		42,105		(767	)	23,578		(499	)	6,744		8,606
Reinvested capital gains		–		–		–		–		9,439		1,575		3,485		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	61,081		7,242		40,413		695		32,397		1,160		9,784		8,116
Investment activity:		NVITGlHlth		NVITGlTech		NVITGvtBd		NVITGrowth		NVITJPBal		NVITMdCpGr		NVITMidCap		NVITMyMkt
Reinvested dividends	$	–		–		3,550		86		1,397		–		1,351		2,631
Mortality and expense risk charges (note 2)		(23	)	(6	)	(1,219	)	(568	)	(892	)	(208	)	(1,400	)	(780	)
Net investment income (loss)		(23	)	(6	)	2,331		(482	)	505		(208	)	(49	)	1,851
Proceeds from mutual fund shares sold		5,591		6,317		116,355		53,343		65,947		27,090		109,392		132,046
Cost of mutual fund shares sold		(5,524	)	(5,782	)	(120,228	)	(56,387	)	(57,187	)	(24,799	)	(87,360	)	(132,046	)
Realized gain (loss) on investments		67		535		(3,873	)	(3,044	)	8,760		2,291		22,032		–
Change in unrealized gain (loss) on investments		(8	)	(335	)	6,228		10,352		(9,062	)	(703	)	(19,685	)	–
Net gain (loss) on investments		59		200		2,355		7,308		(302	)	1,588		2,347		–
Reinvested capital gains		57		–		–		–		1,747		–		3,022		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	93		194		4,686		6,826		1,950		1,380		5,320		1,851

(Continued)

6

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NVITSmCapGr		NVITSmCapVal		NVITSmComp		NVITNWFund		NVITUSGro		NVITVKVal		NVITMltSec		NBTAGuard
Reinvested dividends	$	–		2,067		117		1,235		–		787		3,405		27
Mortality and expense risk charges (note 2)		(254	)	(2,489	)	(1,745	)	(1,621	)	(156	)	(640	)	(1,155	)	(135	)
Net investment income (loss)		(254	)	(422	)	(1,628	)	(386	)	(156	)	147		2,250		(108	)
Proceeds from mutual fund shares sold		17,383		195,495		128,621		112,593		32,617		69,816		114,055		9,506
Cost of mutual fund shares sold		(15,281	)	(161,653	)	(113,268	)	(87,610	)	(29,433	)	(64,077	)	(114,719	)	(7,000	)
Realized gain (loss) on investments		2,102		33,842		15,353		24,983		3,184		5,739		(664	)	2,506
Change in unrealized gain (loss) on investments		(510	)	(70,040	)	(30,620	)	(22,844	)	(13	)	(8,866	)	1,041		(1,843	)
Net gain (loss) on investments		1,592		(36,198	)	(15,267	)	2,139		3,171		(3,127	)	377		663
Reinvested capital gains		–		22,701		17,071		5,517		–		1,832		4		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,338		(13,919	)	176		7,270		3,015		(1,148	)	2,631		555
Investment activity:		NBTAMCGr		NBTAPart		OppCapAp		OppGlSec		OppMSt		OppMidCap		DrySRGro		VEWrldEMkt
Reinvested dividends	$	–		141		351		1,227		1,874		–		390		39
Mortality and expense risk charges (note 2)		(765	)	(314	)	(2,063	)	(1,381	)	(2,822	)	(677	)	(996	)	(159	)
Net investment income (loss)		(765	)	(173	)	(1,712	)	(154	)	(948	)	(677	)	(606	)	(120	)
Proceeds from mutual fund shares sold		68,995		45,856		150,626		137,111		287,085		102,114		96,388		8,449
Cost of mutual fund shares sold		(53,254	)	(44,216	)	(144,320	)	(105,170	)	(247,681	)	(95,727	)	(107,213	)	(5,505	)
Realized gain (loss) on investments		15,741		1,640		6,306		31,941		39,404		6,387		(10,825	)	2,944
Change in unrealized gain (loss) on investments		(4,410	)	(2,221	)	12,603		(31,342	)	(31,181	)	(1,624	)	16,399		(1,012	)
Net gain (loss) on investments		11,331		(581	)	18,909		599		8,223		4,763		5,574		1,932
Reinvested capital gains		–		2,213		–		4,462		–		–		–		1,549
Net increase (decrease) in contract owners’ equity resulting from operations	$	10,566		1,459		17,197		4,907		7,275		4,086		4,968		3,361

(Continued)

7

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		VEWrldHAs		VKUEmMkt		VKUMCpGro		VKUUSRE		WFVOpp
Reinvested dividends	$	47		376		–		1,046		621
Mortality and expense risk charges (note 2)		(591	)	(47	)	(57	)	(1,296	)	(1,435	)
Net investment income (loss)		(544	)	329		(57	)	(250	)	(814	)
Proceeds from mutual fund shares sold		55,103		260		3,352		120,728		99,113
Cost of mutual fund shares sold		(41,329	)	(285	)	(2,481	)	(88,310	)	(84,490	)
Realized gain (loss) on investments		13,774		(25	)	871		32,418		14,623
Change in unrealized gain (loss) on investments		(1,364	)	(397	)	(113	)	(56,239	)	(23,351	)
Net gain (loss) on investments		12,410		(422	)	758		(23,821	)	(8,728	)
Reinvested capital gains		4,593		161		–		8,168		14,545
Net increase (decrease) in contract owners’ equity resulting from operations	$	16,459		68		701		(15,903	)	5,003

See accompanying notes to financial statements.

8

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2007 and 2006

		Total				ACVPIncGr				ACVPInt				ACVPVal
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(4,303	)	(2,836	)	292		246		(567	)	131		186		68
Realized gain (loss) on investments		576,707		63,540		13,148		61		21,219		(267	)	9,740		3,259
Change in unrealized gain (loss) on investments		(418,168	)	283,264		(14,461	)	8,877		(8,883	)	14,613		(29,357	)	3,020
Reinvested capital gains		178,898		85,132		–		–		–		–		9,915		9,159
Net increase (decrease) in contract owners’ equity resulting from operations		333,134		429,100		(1,021	)	9,184		11,769		14,477		(9,516	)	15,506
Equity transactions:
Purchase payments received from contract owners (note 3)		(875	)	67,195		(12	)	–		(102	)	–		(2	)	–
Transfers between funds		–		–		1,005		110		(5,172	)	–		41,084		(8,767	)
Redemptions (note 3)		(345,388	)	(132,550	)	(100	)	(238	)	(75	)	(2,269	)	(6,012	)	(16,426	)
Contingent deferred sales charges (note 2)		–		(3,918	)	–		–		–		–		–		(863	)
Adjustments to maintain reserves		(1,962	)	(268	)	(37	)	(9	)	(45	)	(2	)	(68	)	9
Net equity transactions		(348,225	)	(69,541	)	856		(137	)	(5,394	)	(2,271	)	35,002		(26,047	)
Net change in contract owners’ equity		(15,091	)	359,559		(165	)	9,047		6,375		12,206		25,486		(10,541	)
Contract owners’ equity beginning of period		3,679,671		3,320,112		68,537		59,490		75,680		63,474		91,943		102,484
Contract owners’ equity end of period	$	3,664,580		3,679,671		68,372		68,537		82,055		75,680		117,429		91,943
CHANGES IN UNITS:
Beginning units		298,772		302,238		5,640		5,652		6,004		6,208		4,814		6,278
Conversion units (note 1(a))		69,038		–		1,179		–		1,627		–		4,395		–
Units purchased		29,246		15,906		137		11		–		–		3,991		–
Units redeemed		(62,456	)	(19,372	)	(50	)	(23	)	(520	)	(204	)	(618	)	(1,464	)
Ending units		334,600		298,772		6,906		5,640		7,111		6,004		12,582		4,814

(Continued)

9

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		CSTLCapV				DryIPSmCap				DryStkIx				DryVApp
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(2	)	(21	)	(42	)	(115	)	980		764		36		18
Realized gain (loss) on investments		1,389		173		(13	)	78		49,173		(211	)	2,931		(12	)
Change in unrealized gain (loss) on investments		(2,500	)	699		(199	)	(118	)	(37,580	)	36,196		(2,007	)	1,940
Reinvested capital gains		1,076		–		172		156		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(37	)	851		(82	)	1		12,573		36,749		960		1,946
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		–		(10	)	–		(5	)	–
Transfers between funds		1,087		–		–		464		(527	)	92		(21	)	(8	)
Redemptions (note 3)		–		(624	)	–		–		(27,790	)	(1,272	)	(3,700	)	–
Contingent deferred sales charges (note 2)		–		(2	)	–		–		–		–		–		–
Adjustments to maintain reserves		(26	)	11		(1	)	–		(91	)	(14	)	(14	)	(8	)
Net equity transactions		1,061		(615	)	(1	)	464		(28,418	)	(1,194	)	(3,740	)	(16	)
Net change in contract owners’ equity		1,024		236		(83	)	465		(15,845	)	35,555		(2,780	)	1,930
Contract owners’ equity beginning of period		5,151		4,915		4,089		3,624		300,649		265,094		15,083		13,153
Contract owners’ equity end of period	$	6,175		5,151		4,006		4,089		284,804		300,649		12,303		15,083
CHANGES IN UNITS:
Beginning units		374		420		276		276		27,316		27,430		1,304		1,306
Conversion units (note 1(a))		137		–		132		–		2,707		–		198		–
Units purchased		102		–		–		–		12		12		8		–
Units redeemed		–		(46	)	–		–		(2,626	)	(126	)	(349	)	(2	)
Ending units		613		374		408		276		27,409		27,316		1,161		1,304

(Continued)

10

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FedQualBd				FidVIPEIS				FidVIPGrS				FidVIPHIS
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,722		1,290		394		1,978		(1,141	)	(1,617	)	1,880		1,019
Realized gain (loss) on investments		(436	)	(47	)	13,412		419		(1,967	)	(857	)	(733	)	30
Change in unrealized gain (loss) on investments		257		30		(23,480	)	1,787		35,649		9,946		(1,173	)	(305	)
Reinvested capital gains		–		–		9,654		13,306		125		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,543		1,273		(20	)	17,490		32,666		7,472		(26	)	744
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		(25	)	–		180		–		–		2,620
Transfers between funds		(7,636	)	–		(15,126	)	27,270		(22,664	)	91		20,450		6,202
Redemptions (note 3)		–		(882	)	(163	)	(3,276	)	(1,622	)	(1,185	)	(9,063	)	(805	)
Contingent deferred sales charges (note 2)		–		–		–		–		–		–		–		(8	)
Adjustments to maintain reserves		(45	)	(5	)	(69	)	2		(52	)	(2	)	(19	)	(5	)
Net equity transactions		(7,681	)	(887	)	(15,383	)	23,996		(24,158	)	(1,096	)	11,368		8,004
Net change in contract owners’ equity		(6,138	)	386		(15,403	)	41,486		8,508		6,376		11,342		8,748
Contract owners’ equity beginning of period		48,601		48,215		130,366		88,880		148,771		142,395		15,290		6,542
Contract owners’ equity end of period	$	42,463		48,601		114,963		130,366		157,279		148,771		26,632		15,290
CHANGES IN UNITS:
Beginning units		3,608		3,676		8,840		7,136		16,960		17,084		1,454		682
Conversion units (note 1(a))		1,261		–		4,175		–		(2,059	)	–		76		–
Units purchased		528		–		136		–		111		12		2,005		852
Units redeemed		(1,300	)	(68	)	(1,669	)	(243	)	(2,416	)	(136	)	(900	)	(80	)
Ending units		4,097		3,608		11,482		8,840		12,596		16,960		2,635		1,454

(Continued)

11

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPOvS				FidVIPConS				FidVIPGrOpS				FidVIPVaIS
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,047		(344	)	(1,032	)	(413	)	(223	)	(136	)	(50	)	(71	)
Realized gain (loss) on investments		16,744		1,601		30,852		6,128		858		(10	)	232		(10	)
Change in unrealized gain (loss)on investments		(12,568	)	6,928		(52,217	)	(3,664	)	2,475		818		(861	)	56
Reinvested capital gains		4,719		344		50,047		12,506		–		–		1,049		1,162
Net increase (decrease) in contract owners’ equity resulting from operations		9,942		8,529		27,650		14,557		3,110		672		370		1,137
Equity transactions:
Purchase payments received from contract owners (note 3)		(62	)	14,781		8		–		114		–		14		–
Transfers between funds		(12,294	)	1,459		35,848		(1,951	)	(3,780	)	–		–		1,476
Redemptions (note 3)		(8,242	)	(1,593	)	(10,208	)	(16,164	)	–		–		–		–
Contingent deferred sales charges (note 2)		–		(19	)	–		(30	)	–		–		–		–
Adjustments to maintain reserves		(35	)	(10	)	(66	)	(11	)	(28	)	(2	)	(39	)	17
Net equity transactions		(20,633	)	14,618		25,582		(18,156	)	(3,694	)	(2	)	(25	)	1,493
Net change in contract owners’ equity		(10,691	)	23,147		53,232		(3,599	)	(584	)	670		345		2,630
Contract owners’ equity beginning of period		63,375		40,228		155,011		158,610		18,160		17,490		9,315		6,685
Contract owners’ equity end of period	$	52,684		63,375		208,243		155,011		17,576		18,160		9,660		9,315
CHANGES IN UNITS:
Beginning units		4,882		3,604		10,170		11,450		2,144		2,144		618		508
Conversion units (note 1(a))		1,490		–		5,345		–		(337	)	–		311		–
Units purchased		492		–		3,440		–		–		12		–		110
Units redeemed		(2,279	)	(157	)	(961	)	(1,280	)	(364	)	–		–		–
Ending units		4,585		4,882		17,994		10,170		1,443		2,144		929		618

(Continued)

12

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		JAspForty				JAspGlTechS				JAspIntGroS				NVITFHiInc
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(2,534	)	(2,332	)	(419	)	(487	)	(1,692	)	614		1,462		1,822
Realized gain (loss) on investments		33,499		(14	)	(860	)	(630	)	75,199		10,373		1,073		118
Change in unrealized gain (loss) on investments		30,116		16,452		8,521		3,291		(33,094	)	40,788		(1,840	)	729
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		61,081		14,106		7,242		2,174		40,413		51,775		695		2,669
Equity transactions:
Purchase payments received from contract owners (note 3)		24		–		25		–		(1,549	)	6,289		12		–
Transfers between funds		1,264		–		–		–		51,078		(1,665	)	(6,763	)	–
Redemptions (note 3)		(15,172	)	(293	)	(305	)	(293	)	(58,041	)	(20,872	)	–		(2,208	)
Contingent deferred sales charges (note 2)		–		–		–		(10	)	–		(1,063	)	–		–
Adjustments to maintain reserves		(56	)	(1	)	(17	)	(4	)	(36	)	1		(14	)	(6	)
Net equity transactions		(13,940	)	(294	)	(297	)	(307	)	(8,548	)	(17,310	)	(6,765	)	(2,214	)
Net change in contract owners’ equity		47,141		13,812		6,945		1,867		31,865		34,465		(6,070	)	455
Contract owners’ equity beginning of period		199,524		185,712		36,432		34,565		153,968		119,503		31,078		30,623
Contract owners’ equity end of period	$	246,665		199,524		43,377		36,432		185,833		153,968		25,008		31,078
CHANGES IN UNITS:
Beginning units		23,314		23,350		9,296		9,378		11,676		13,104		2,224		2,390
Conversion units (note 1(a))		(3,473	)	–		(5,662	)	–		3,729		–		886		–
Units purchased		1,126		–		–		–		4,530		12		351		–
Units redeemed		(2,758	)	(36	)	(28	)	(82	)	(5,203	)	(1,850	)	(999	)	(166	)
Ending units		18,209		23,314		3,606		9,296		14,732		11,676		2,462		2,224

(Continued)

13

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITEmMrkts				NVITGlUtl				NVITIntGro				NVITWLead
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(620	)	(343	)	84		51		(445	)	(110	)	(490	)	(199	)
Realized gain (loss) on investments		21,814		2,282		862		(221	)	8,422		2,179		11,137		126
Change in unrealized gain (loss) on investments		1,764		11,836		(1,361	)	1,640		(1,678	)	7,053		(2,531	)	8,005
Reinvested capital gains		9,439		557		1,575		349		3,485		78		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		32,397		14,332		1,160		1,819		9,784		9,200		8,116		7,932
Equity transactions:
Purchase payments received from contract owners (note 3)		(24	)	–		(1	)	–		(1	)	6,813		–		–
Transfers between funds		24,804		(990	)	1,087		(2,851	)	1,087		15,936		–		23,332
Redemptions (note 3)		–		–		–		–		(2,608	)	(747	)	–		–
Contingent deferred sales charges (note 2)		–		–		–		–		–		(16	)	–		–
Adjustments to maintain reserves		(26	)	(16	)	(11	)	(11	)	(32	)	9		(25	)	1
Net equity transactions		24,754		(1,006	)	1,075		(2,862	)	(1,554	)	21,995		(25	)	23,333
Net change in contract owners’ equity		57,151		13,326		2,235		(1,043	)	8,230		31,195		8,091		31,265
Contract owners’ equity beginning of period		57,874		44,548		6,258		7,301		41,251		10,056		44,505		13,240
Contract owners’ equity end of period	$	115,025		57,874		8,493		6,258		49,481		41,251		52,596		44,505
CHANGES IN UNITS:
Beginning units		2,494		2,588		326		516		3,354		1,072		3,434		1,268
Conversion units (note 1(a))		3,341		–		302		–		775		–		1,034		–
Units purchased		2,246		–		91		–		81		12		–		2,166
Units redeemed		–		(97	)	–		(190	)	(257	)	(116	)	–		–
Ending units		8,081		2,494		719		326		3,953		3,354		4,468		3,434

(Continued)

14

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITGlHlth				NVITGlTech				NVITGvtBd				NVITGrowth
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(23	)	(54	)	(6	)	(39	)	2,331		2,493		(482	)	(506	)
Realized gain (loss) on investments		67		120		535		1		(3,873	)	(144	)	(3,044	)	(653	)
Change in unrealized gain (loss) on investments		(8	)	(25	)	(335	)	306		6,228		(1,356	)	10,352		3,426
Reinvested capital gains		57		–		–		–		–		670		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		93		41		194		268		4,686		1,663		6,826		2,267
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		–		–		21		3,668		2		7,337
Transfers between funds		–		(3,755	)	(3,245	)	–		3,652		5,071		–		494
Redemptions (note 3)		(2,830	)	–		–		–		(18,412	)	(858	)	(7,759	)	(829	)
Contingent deferred sales charges (note 2)		–		–		–		–		–		(9	)	–		(17	)
Adjustments to maintain reserves		(9	)	(26	)	(2	)	–		(44	)	2		(39	)	2
Net equity transactions		(2,839	)	(3,781	)	(3,247	)	–		(14,783	)	7,874		(7,796	)	6,987
Net change in contract owners’ equity		(2,746	)	(3,740	)	(3,053	)	268		(10,097	)	9,537		(970	)	9,254
Contract owners’ equity beginning of period		2,746		6,486		3,053		2,785		96,415		86,878		44,773		35,519
Contract owners’ equity end of period	$	–		2,746		–		3,053		86,318		96,415		43,803		44,773
CHANGES IN UNITS:
Beginning units		214		512		944		944		7,114		6,532		7,740		6,428
Conversion units (note 1(a))		59		–		(637	)	–		2,541		–		(3,251	)	–
Units purchased		–		–		–		–		383		12		–		1,468
Units redeemed		(273	)	(298	)	(307	)	–		(1,855	)	(65	)	(761	)	(156	)
Ending units		–		214		–		944		8,183		7,114		3,728		7,740

(Continued)

15

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITJPBal				NVITMdCpGr				NVITMidCap				NVITMyMkt
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	505		541		(208	)	(265	)	(49	)	(231	)	1,851		2,946
Realized gain (loss) on investments		8,760		352		2,291		(91	)	22,032		503		–		–
Change in unrealized gain (loss) on investments		(9,062	)	5,136		(703	)	2,087		(19,685	)	5,819		–		–
Reinvested capital gains		1,747		–		–		–		3,022		1,259		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,950		6,029		1,380		1,731		5,320		7,350		1,851		2,946
Equity transactions:
Purchase payments received from contract owners (note 3)		(13	)	–		52		3,144		(1	)	–		11		–
Transfers between funds		4,075		2,928		(3,163	)	(3,068	)	4,412		(23	)	(371	)	(40,765	)
Redemptions (note 3)		(3,625	)	(2,986	)	(3,985	)	(582	)	(12,517	)	–		(42,508	)	(1,609	)
Contingent deferred sales charges (note 2)		–		(2	)	–		(15	)	–		–		–		–
Adjustments to maintain reserves		(45	)	9		(19	)	(2	)	(36	)	(23	)	(20	)	(28	)
Net equity transactions		392		(51	)	(7,115	)	(523	)	(8,142	)	(46	)	(42,888	)	(42,402	)
Net change in contract owners’ equity		2,342		5,978		(5,735	)	1,208		(2,822	)	7,304		(41,037	)	(39,456	)
Contract owners’ equity beginning of period		61,303		55,325		18,538		17,330		95,194		87,890		88,356		127,812
Contract owners’ equity end of period	$	63,645		61,303		12,803		18,538		92,372		95,194		47,319		88,356
CHANGES IN UNITS:
Beginning units		5,400		5,394		1,986		2,012		4,860		4,862		7,984		11,904
Conversion units (note 1(a))		737		–		(134	)	–		4,687		–		851		–
Units purchased		396		–		102		–		391		12		–		–
Units redeemed		(353	)	(276	)	(763	)	(68	)	(1,201	)	(2	)	(4,255	)	(3,920	)
Ending units		6,180		5,400		1,191		1,986		8,737		4,860		4,580		7,984

(Continued)

16

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITSmCapGr				NVITSmCapVal				NVITSmComp				NVITNWFund
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(254	)	(235	)	(422	)	(1,553	)	(1,628	)	(1,829	)	(386	)	(313	)
Realized gain (loss) on investments		2,102		13		33,842		1,394		15,353		8,419		24,983		75
Change in unrealized gain (loss) on investments		(510	)	527		(70,040	)	10,814		(30,620	)	2,431		(22,844	)	12,101
Reinvested capital gains		–		–		22,701		13,263		17,071		2,894		5,517		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,338		305		(13,919	)	23,918		176		11,915		7,270		11,863
Equity transactions:
Purchase payments received from contract owners (note 3)		7		–		(80	)	–		(9	)	2,620		105		–
Transfers between funds		725		–		(8,383	)	1,460		7,481		2,422		(371	)	54
Redemptions (note 3)		(34	)	(95	)	(284	)	(710	)	(4,676	)	(24,612	)	–		–
Contingent deferred sales charges (note 2)		–		–		–		(2	)	–		(1,284	)	–		–
Adjustments to maintain reserves		(38	)	13		(95	)	(12	)	(81	)	–		(25	)	(22	)
Net equity transactions		660		(82	)	(8,842	)	736		2,715		(20,854	)	(291	)	32
Net change in contract owners’ equity		1,998		223		(22,761	)	24,654		2,891		(8,939	)	6,979		11,895
Contract owners’ equity beginning of period		17,135		16,912		176,483		151,829		119,062		128,001		110,283		98,388
Contract owners’ equity end of period	$	19,133		17,135		153,722		176,483		121,953		119,062		117,262		110,283
CHANGES IN UNITS:
Beginning units		1,354		1,360		7,584		7,546		5,616		6,670		9,240		9,236
Conversion units (note 1(a))		344		–		10,056		–		6,278		–		1,819		–
Units purchased		61		–		748		–		986		12		–		5
Units redeemed		(3	)	(7	)	(1,645	)	(32	)	(776	)	(1,269	)	(34	)	(1	)
Ending units		1,756		1,354		16,743		7,584		12,104		5,616		11,025		9,240

(Continued)

17

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITUSGro				NVITVKVal				NVITMltSec				NBTAGuard
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(156	)	(140	)	147		162		2,250		2,031		(108	)	(62	)
Realized gain (loss) on investments		3,184		(4	)	5,739		2,670		(664	)	29		2,506		26
Change in unrealized gain (loss) on investments		(13	)	(133	)	(8,866	)	1,710		1,041		79		(1,843	)	1,025
Reinvested capital gains		–		206		1,832		2,101		4		122		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		3,015		(71	)	(1,148	)	6,643		2,631		2,261		555		989
Equity transactions:
Purchase payments received from contract owners (note 3)		–		9		15		7,336		(14	)	2,620		–		–
Transfers between funds		(15,160	)	2,680		1,254		(15,827	)	9,833		28,266		–		–
Redemptions (note 3)		(2,570	)	(294	)	(15,000	)	(822	)	(9,039	)	(290	)	–		–
Contingent deferred sales charges (note 2)		–		(6	)	–		(17	)	–		(6	)	–		–
Adjustments to maintain reserves		(28	)	5		(50	)	(7	)	(62	)	(1	)	(2	)	(1	)
Net equity transactions		(17,758	)	2,394		(13,781	)	(9,337	)	718		30,589		(2	)	(1	)
Net change in contract owners’ equity		(14,743	)	2,323		(14,929	)	(2,694	)	3,349		32,850		553		988
Contract owners’ equity beginning of period		14,743		12,420		53,903		56,597		87,793		54,943		9,368		8,380
Contract owners’ equity end of period	$	–		14,743		38,974		53,903		91,142		87,793		9,921		9,368
CHANGES IN UNITS:
Beginning units		1,002		830		4,760		5,712		6,288		4,068		648		648
Conversion units (note 1(a))		471		–		648		–		2,495		–		287		–
Units purchased		–		–		133		–		2,572		12		–		–
Units redeemed		(1,473	)	(22	)	(1,483	)	(1,707	)	(2,512	)	(22	)	–		–
Ending units		–		1,002		4,058		4,760		8,843		6,288		935		648

(Continued)

18

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NBTAMCGr				NBTAPart				OppCapAp				OppGlSec
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(765	)	(734	)	(173	)	(431	)	(1,712	)	(1,406	)	(154	)	(412	)
Realized gain (loss) on investments		15,741		1,134		1,640		14,167		6,306		(409	)	31,941		186
Change in unrealized gain (loss) on investments		(4,410	)	5,793		(2,221	)	(11,509	)	12,603		10,458		(31,342	)	10,523
Reinvested capital gains		–		–		2,213		3,522		–		–		4,462		5,280
Net increase (decrease) in contract owners’ equity resulting from operations		10,566		6,193		1,459		5,749		17,197		8,643		4,907		15,577
Equity transactions:
Purchase payments received from contract owners (note 3)		14		–		5		–		234		–		(9	)	–
Transfers between funds		(12,192	)	(1,082	)	(12,257	)	(33,696	)	(6,044	)	–		(22,338	)	2,670
Redemptions (note 3)		–		(937	)	–		(14,060	)	–		(404	)	–		–
Contingent deferred sales charges (note 2)		–		(2	)	–		–		–		(2	)	–		–
Adjustments to maintain reserves		(34	)	(1	)	(17	)	(18	)	(51	)	(25	)	(56	)	(19	)
Net equity transactions		(12,212	)	(2,022	)	(12,269	)	(47,774	)	(5,861	)	(431	)	(22,403	)	2,651
Net change in contract owners’ equity		(1,646	)	4,171		(10,810	)	(42,025	)	11,336		8,212		(17,496	)	18,228
Contract owners’ equity beginning of period		55,891		51,720		33,294		75,319		142,308		134,096		113,339		95,111
Contract owners’ equity end of period	$	54,245		55,891		22,484		33,294		153,644		142,308		95,843		113,339
CHANGES IN UNITS:
Beginning units		4,342		4,544		2,132		5,338		12,054		12,090		8,260		8,044
Conversion units (note 1(a))		1,261		–		1,128		–		2,179		–		3,090		–
Units purchased		–		–		–		–		–		12		–		218
Units redeemed		(1,100	)	(202	)	(1,217	)	(3,206	)	(577	)	(36	)	(2,191	)	(2	)
Ending units		4,503		4,342		2,043		2,132		13,656		12,054		9,159		8,260

(Continued)

19

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		OppMSt				OppMidCap				DrySRGro				VEWrldEMkt
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(948	)	(629	)	(677	)	(1,036	)	(606	)	(947	)	(120	)	(56	)
Realized gain (loss) on investments		39,404		381		6,387		(4,848	)	(10,825	)	(561	)	2,944		25
Change in unrealized gain (loss) on investments		(31,181	)	28,277		(1,624	)	7,029		16,399		7,050		(1,012	)	1,637
Reinvested capital gains		–		–		–		–		–		–		1,549		624
Net increase (decrease) in contract owners’ equity resulting from operations		7,275		28,029		4,086		1,145		4,968		5,542		3,361		2,230
Equity transactions:
Purchase payments received from contract owners (note 3)		(103	)	7,337		107		–		158		–		–		–
Transfers between funds		(18,147	)	(7,058	)	(12,441	)	–		–		–		2,647		–
Redemptions (note 3)		(35,764	)	(3,946	)	(22,371	)	(9,679	)	(17,828	)	–		(118	)	–
Contingent deferred sales charges (note 2)		–		(40	)	–		(483	)	–		–		–		–
Adjustments to maintain reserves		(70	)	(20	)	(29	)	(5	)	(48	)	(6	)	(15	)	4
Net equity transactions		(54,084	)	(3,727	)	(34,734	)	(10,167	)	(17,718	)	(6	)	2,514		4
Net change in contract owners’ equity		(46,809	)	24,302		(30,648	)	(9,022	)	(12,750	)	5,536		5,875		2,234
Contract owners’ equity beginning of period		230,605		206,303		66,159		75,181		77,648		72,112		8,184		5,950
Contract owners’ equity end of period	$	183,796		230,605		35,511		66,159		64,898		77,648		14,059		8,184
CHANGES IN UNITS:
Beginning units		20,320		20,618		6,562		7,570		9,638		9,638		292		292
Conversion units (note 1(a))		2,697		–		70		–		(1,875	)	–		525		–
Units purchased		–		–		–		–		–		12		228		–
Units redeemed		(5,197	)	(378	)	(3,236	)	(1,008	)	(1,655	)	–		(9	)	–
Ending units		17,820		20,320		3,396		6,562		6,108		9,638		1,036		292

(Continued)

20

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		VEWrldHAs				VKUEmMkt				VKUMCpGro				VKUUSRE
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(544	)	(397	)	329		(1	)	(57	)	(44	)	(250	)	(222	)
Realized gain (loss) on investments		13,774		3,095		(25	)	115		871		108		32,418		12,970
Change in unrealized gain (loss) on investments		(1,364	)	(126	)	(397	)	(97	)	(113	)	7		(56,239	)	8,878
Reinvested capital gains		4,593		1,140		161		–		–		199		8,168		6,267
Net increase (decrease) in contract owners’ equity resulting from operations		16,459		3,712		68		17		701		270		(15,903	)	27,893
Equity transactions:
Purchase payments received from contract owners (note 3)		29		–		–		–		–		1		–		2,620
Transfers between funds		(14,333	)	10,257		7,106		(2,758	)	–		89		(17,551	)	(8,559	)
Redemptions (note 3)		(156	)	–		(214	)	–		–		–		(1,893	)	–
Contingent deferred sales charges (note 2)		–		–		–		–		–		–		–		–
Adjustments to maintain reserves		(26	)	2		(8	)	(33	)	(8	)	(7	)	(126	)	27
Net equity transactions		(14,486	)	10,259		6,884		(2,791	)	(8	)	83		(19,570	)	(5,912	)
Net change in contract owners’ equity		1,973		13,971		6,952		(2,774	)	693		353		(35,473	)	21,981
Contract owners’ equity beginning of period		34,272		20,301		–		2,774		3,359		3,006		97,414		75,433
Contract owners’ equity end of period	$	36,245		34,272		6,952		–		4,052		3,359		61,941		97,414
CHANGES IN UNITS:
Beginning units		1,114		810		–		126		394		380		2,590		2,730
Conversion units (note 1(a))		2,194		–		–		–		(59	)	–		7,143		–
Units purchased		587		–		685		–		–		12		2,587		–
Units redeemed		(1,453	)	–		(21	)	(126	)	–		(1	)	(4,743	)	(140	)
Ending units		2,442		1,114		664		–		335		394		7,577		2,590

(Continued)

21

NATIONWIDE VARIABLE ACCOUNT-10

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		WFVOpp
Investment activity:		2007		2006
Net investment income (loss)	$	(814	)	(1,280	)
Realized gain (loss) on investments		14,623		(81	)
Change in unrealized gain (loss) on investments		(23,351	)	780
Reinvested capital gains		14,545		9,968
Net increase (decrease) in contract owners’ equity resulting from operations		5,003		9,387
Equity transactions:
Purchase payments received from contract owners (note 3)		10		–
Transfers between funds		–		–
Redemptions (note 3)		(704	)	(690	)
Contingent deferred sales charges
(note 2)		–		(22	)
Adjustments to maintain reserves		(27	)	(20	)
Net equity transactions		(721	)	(732	)
Net change in contract owners’ equity		4,282		8,655
Contract owners’ equity beginning of period		97,139		88,484
Contract owners’ equity end of period	$	101,421		97,139
CHANGES IN UNITS:
Beginning units		7,818		7,880
Conversion units (note 1(a))		1,865		–
Units purchased		–		–
Units redeemed		(66	)	(62	)
Ending units		9,617		7,818

See accompanying notes to financial statements.

22

NATIONWIDE VARIABLE ACCOUNT-10

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(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.

Effective January 1, 2007, the administrative and support services for the contracts were transferred to a new computer system and operations group. As a result of the conversion, the number of units for each contract were recalculated based on the initial unit value utilized by the new system. These conversion units are presented separately for each subaccount in the rollforward of units in the Statements of Changes in Contract Owners’ Equity.

(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 – Global Small Cap Portfolio (CSTGlobSmCp)*

Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)*

Credit Suisse Trust – Large Cap Value Portfolio (CSTLCapV)

Portfolios of the Dreyfus Investment Portfolios (Dreyfus IP);

Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap)

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

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

Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVApp)

Portfolios of the Federated Insurance Series (Federated IS);

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

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

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

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

Portfolios of the Janus Aspen Series;

Janus Aspen Series – Forty Portfolio – Service Shares (JAspForty)

Janus Aspen Series – Global Technology Portfolio – Service Shares (JAspGlTechS)

Janus Aspen Series – International Growth Portfolio – Service Shares (JAspIntGroS)

Portfolios of the Nationwide Variable Insurance Trust (Nationwide VIT)(formerly Gartmore GVIT);

Nationwide VIT – Federated High Income Bond Fund – Class I (NVITFHiInc)

Nationwide VIT – Gartmore Emerging Markets Fund – Class I (NVITEmMrkts)

Nationwide VIT – Gartmore Global Utilities Fund – Class I (NVITGlUtl)

Nationwide VIT – Gartmore International Growth Fund – Class I (NVITIntGro)

Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I (NVITWLead)

Nationwide VIT – Global Financial Services Fund – Class I (NVITGlFin)*

Nationwide VIT – Global Health Sciences Fund – Class I (NVITGlHlth)*

Nationwide VIT – Global Technology and Communications Fund – Class I (NVITGlTech)*

Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd)

Nationwide VIT – Growth Fund – Class I (NVITGrowth)

Nationwide VIT – J.P. Morgan Balanced Fund – Class I (NVITJPBal)

Nationwide VIT – Mid Cap Growth Fund – Class I (NVITMdCpGr)

Nationwide VIT – Mid Cap Index Fund – Class I (NVITMidCap)

Nationwide VIT – Money Market Fund – Class I (NVITMyMkt)

Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I

    (formerly Gartmore GVIT – Small Cap Growth Fund – Class I) (NVITSmCapGr)

Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I

    (formerly Gartmore GVIT – Small Cap Value Fund – Class I) (NVITSmCapVal)

Nationwide VIT – Multi-Manager Small Company Fund – Class I

    (formerly Gartmore GVIT – Small Company Fund – Class I) (NVITSmComp)

Nationwide VIT – Nationwide Fund – Class I (NVITNWFund)

Nationwide VIT – Nationwide Leaders Fund – Class I (NVITNWLead)*

Nationwide VIT – Strategic Value Fund – Class I (NWStratV)*

Nationwide VIT – U.S. Growth Leaders Fund – Class I (NVITUSGro)*

Nationwide VIT – Van Kampen Comstock Value Fund – Class I (NVITVKVal)

Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I (NVITMltSec)

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

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

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

Neuberger Berman AMT – Partners Portfolio – Class I (NBTAPart)

Portfolios of the Oppenheimer Variable Account Funds (Oppenheimer VAF);

Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares (OppCapAp)

Oppenheimer VAF – Global Securities Fund – Non-Service Shares (OppGlSec)

Oppenheimer VAF – Main Street^® – Non-Service Shares (OppMSt)

Oppenheimer VAF – Mid Cap Fund – Non-Service Shares (OppMidCap)

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

Portfolios of the Van Eck Worldwide Insurance Trust;

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

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

Portfolios of the Van Kampen – The Universal Institutional Funds, Inc. (Van Kampen UIF);

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

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

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

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

Wells Fargo AVT – Opportunity Fund^SM (WFVOpp)

At December 31, 2007, 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, 2007 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 First in – First out 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.

(f) New Accounting Pronouncement

In September 2006, the FASB issued SFAS 157, Fair Value Measurements (SFAS 157). SFAS 157 provides enhanced guidance for using fair value to measure assets and liabilities and requires new disclosures about fair value measurements. SFAS 157 also provides guidance regarding the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. For assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to initial recognition, the reporting entity shall disclose information that enables financial statement users to assess the inputs used to develop those measurements. SFAS 157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, with early adoption permitted. The Company will adopt SFAS 157 effective January 1, 2008. SFAS 157 is not expected to have a material impact on the Company’s financial position or results of operations upon adoption.

(Continued)

25

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

(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%.

(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, 2007 and 2006, total transfers into the Account from the fixed account were $0 and $67,195, respectively, and total transfers from the Account to the fixed account were $3,312 and $29,261, respectively.

(Continued)

26

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

(4) Financial Highlights

The following is a summary of units, unit fair values and contract owners’ equity outstanding for variable universal life 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, 2007.

	Contract     Expense     Rate*	Units	Unit     Fair Value		Contract     Owners’ Equity		Investment     Income     Ratio**	Total Return***
American Century VP – Income & Growth Fund – Class I
2007	1.40%	6,906	$	9.900394	$	68,372	1.86%	-1.00% 0	1/03/07
2006	1.40%	5,640		12.151994		68,537	1.78%	15.45%
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%
American Century VP – International Fund – Class I
2007	1.40%	7,111		11.539148		82,055	0.65%	15.39% 0	1/03/07
2006	1.40%	6,004		12.604859		75,680	1.58%	23.28%
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%
American Century VP – Value Fund – Class I
2007	1.40%	12,582		9.333078		117,429	1.83%	-6.67% 0	1/03/07
2006	1.40%	4,814		19.099026		91,943	1.48%	17.00%
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%
Credit Suisse Trust – Large Cap Value Portfolio
2007	1.40%	613		10.072840		6,175	1.29%	0.73% 0	1/03/07
2006	1.40%	374		13.773024		5,151	0.97%	17.68%
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%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	1.40%	408		9.817683		4,006	0.40%	-1.82% 0	1/03/07
2006	1.40%	276		14.814053		4,089	0.28%	12.82%
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%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	1.40%	27,409		10.390881		284,804	1.76%	3.91% 0	1/03/07
2006	1.40%	27,316		11.006315		300,649	1.67%	13.89%
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%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	1.40%	1,161		10.596893		12,303	1.75%	5.97% 0	1/03/07
2006	1.40%	1,304		11.566843		15,083	1.52%	14.85%
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%
Federated IS – Quality Bond Fund II – Primary Shares
2007	1.40%	4,097		10.364499		42,463	5.08%	3.64% 0	1/03/07
2006	1.40%	3,608		13.470373		48,601	4.09%	2.70%
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%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	1.40%	11,482		10.012446		114,963	1.67%	0.12% 0	1/03/07
2006	1.40%	8,840		14.747337		130,366	3.33%	18.40%
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%

(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***
Fidelity® VIP – Growth Portfolio – Service Class
2007	1.40%	12,596	$	12.486462	$	157,279	0.60%	24.86% 0	1/03/07
2006	1.40%	16,960		8.771891		148,771	0.28%	5.24%
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%
Fidelity® VIP – High Income Portfolio – Service Class
2007	1.40%	2,635		10.107127		26,632	10.52%	1.07% 0	1/03/07
2006	1.40%	1,454		10.516122		15,290	13.85%	9.63%
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%
Fidelity® VIP – Overseas Portfolio – Service Class
2007	1.40%	4,585		11.490519		52,684	3.28%	14.91% 0	1/03/07
2006	1.40%	4,882		12.981333		63,375	0.79%	16.30%
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%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	1.40%	17,994		11.572922		208,243	0.92%	15.73% 0	1/03/07
2006	1.40%	10,170		15.242016		155,011	1.12%	10.03%
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%
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2007	1.40%	1,443		12.180481		17,576	0.00%	21.80% 0	1/03/07
2006	1.40%	2,144		8.470207		18,160	0.60%	3.83%
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%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	1.40%	929		10.397846		9,660	0.92%	3.98% 0	1/03/07
2006	1.40%	508		15.078159		7,660	0.45%	14.59%
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%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	1.40%	18,209		13.546325		246,665	0.17%	35.46% 0	1/03/07
2006	1.40%	23,314		8.558108		199,524	0.14%	7.60%
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%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	1.40%	3,606		12.029048		43,377	0.35%	20.29% 0	1/03/07
2006	1.40%	9,296		3.919155		36,432	0.00%	6.33%
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%
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	1.40%	14,732		12.614208		185,833	0.44%	26.14% 0	1/03/07
2006	1.40%	11,676		13.186665		153,968	1.83%	44.60%
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%

(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***
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	1.40%	2,462	$	10.157527	$	25,008	6.51%	1.58% 0	1/03/07
2006	1.40%	2,224		13.973939		31,078	7.31%	9.06%
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%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	1.40%	8,081		14.234055		115,025	0.74%	42.34% 0	1/03/07
2006	1.40%	2,494		23.205358		57,874	0.69%	34.81%
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%
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	1.40%	719		11.811862		8,493	2.44%	18.12% 0	1/03/07
2006	1.40%	326		19.195121		6,258	2.15%	35.66%
2005	1.40%	516		14.149889		7,301	1.93%	4.91%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	1.40%	3,953		12.517354		49,481	0.38%	25.17% 0	1/03/07
2006	1.40%	3,354		12.299092		41,251	1.11%	31.11%
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%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2007	1.40%	4,468		11.771663		52,596	0.41%	17.72% 0	1/03/07
2006	1.40%	3,434		12.960173		44,505	0.90%	24.12%
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%
Nationwide VIT – Global Health Sciences Fund – Class I
2006	1.40%	214		12.829766		2,746	0.00%	1.28%
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%
Nationwide VIT – Global Technology and Communications Fund – Class I
2006	1.40%	944		3.234018		3,053	0.00%	9.62%
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%
Nationwide VIT – Government Bond Fund – Class I
2007	1.40%	8,183		10.548475		86,318	3.89%	5.48% 0	1/03/07
2006	1.40%	7,114		13.552851		96,415	4.21%	1.90%
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%
Nationwide VIT – Growth Fund – Class I
2007	1.40%	3,728		11.749798		43,803	0.19%	17.50% 0	1/03/07
2006	1.40%	7,740		5.784631		44,773	0.06%	4.69%
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%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2007	1.40%	6,180		10.298535		63,645	2.24%	2.99% 0	1/03/07
2006	1.40%	5,400		11.352415		61,303	2.32%	10.68%
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%

(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***
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	1.40%	1,191	$	10.750095	$	12,803	0.00%	7.50% 0	1/03/07
2006	1.40%	1,986		9.334386		18,538	0.00%	8.37%
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%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	1.40%	8,737		10.572487		92,372	1.44%	5.72%	01/03/07
2006	1.40%	4,860		19.587192		95,194	1.14%	8.36%
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%
Nationwide VIT – Money Market Fund – Class I
2007	1.40%	4,580		10.331763		47,319	3.88%	3.32% 0	1/03/07
2006	1.40%	7,984		11.066601		88,356	4.41%	3.07%
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%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	1.40%	1,756		10.895686		19,133	0.00%	8.96% 0	1/03/07
2006	1.40%	1,354		12.654947		17,135	0.00%	1.77%
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%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	1.40%	16,743		9.181264		153,722	1.25%	-8.19% 0	1/03/07
2006	1.40%	7,584		23.270462		176,483	0.45%	15.66%
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%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	1.40%	12,104		10.075421		121,953	0.10%	0.75% 0	1/03/07
2006	1.40%	5,616		21.200579		119,062	0.09%	10.47%
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%
Nationwide VIT – Nationwide Fund – Class I
2007	1.40%	11,025		10.635976		117,262	1.09%	6.36% 0	1/03/07
2006	1.40%	9,240		11.935388		110,283	1.09%	12.04%
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%
Nationwide VIT – Nationwide Leaders Fund – Class I
2003	1.40%	379		10.353389		3,924	0.06%	23.64%
Nationwide VIT Strategic Value Fund – Class I
2003	1.40%	377		11.012816		4,152	0.04%	36.87%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2006	1.40%	1,002		14.713301		14,743	0.32%	-1.67%
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%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	1.40%	4,058		9.604227		38,974	1.69%	-3.96% 0	1/03/07
2006	1.40%	4,760		11.324174		53,903	1.70%	14.29%
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%

(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***
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	1.40%	8,843	$	10.306713	$	91,142	3.81%	3.07% 0	1/03/07
2006	1.40%	6,288		13.961929		87,793	4.59%	3.37%
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%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	1.40%	935		10.611210		9,921	0.28%	6.11% 0	1/03/07
2006	1.40%	648		14.457195		9,368	0.68%	11.79%
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%
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2007	1.40%	4,503		12.046463		54,245	0.00%	20.46% 0	1/03/07
2006	1.40%	4,342		12.872160		55,891	0.00%	13.09%
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%
Neuberger Berman AMT – Partners Portfolio – Class I
2007	1.40%	2,043		11.005439		22,484	0.51%	10.05% 0	1/03/07
2006	1.40%	2,132		15.616140		33,294	0.48%	10.67%
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%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	1.40%	13,656		11.251010		153,644	0.24%	12.51% 0	1/03/07
2006	1.40%	12,054		11.805876		142,308	0.37%	6.44%
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%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	1.40%	9,159		10.464374		95,843	1.17%	4.64% 0	1/03/07
2006	1.40%	8,260		13.721463		113,339	0.99%	16.05%
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%
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	1.40%	17,820		10.314046		183,796	0.90%	3.14% 0	1/03/07
2006	1.40%	20,320		11.348679		230,605	1.10%	13.42%
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%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	1.40%	3,396		10.456810		35,511	0.00%	4.57% 0	1/03/07
2006	1.40%	6,562		10.082202		66,159	0.00%	1.52%
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%
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2007	1.40%	6,108		10.625158		64,898	0.55%	6.25% 0	1/03/07
2006	1.40%	9,638		8.056423		77,648	0.10%	7.68%
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%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	1.40%	1,036		13.570538		14,059	0.35%	35.71% 0	1/03/07
2006	1.40%	292		28.027733		8,184	0.57%	37.55%
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%

(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 Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	1.40%	2,442	$	14.842195	$	36,245	0.13%	48.42% 0	1/03/07
2006	1.40%	1,114		30.765179		34,272	0.05%	22.75%
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%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	1.40%	664		10.470093		6,952	10.82%	4.70% 0	1/03/07
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
2007	1.40%	335		12.096300		4,052	0.00%	20.96% 0	1/03/07
2006	1.40%	394		8.524521		3,359	0.00%	7.75%
2005	1.40%	380		7.911472		3,006	0.00%	15.93%
2004	1.40%	416		6.824496		2,839	0.00%	19.89%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	1.40%	7,577		8.174924		61,941	1.31%	-18.25% 0	1/03/07
2006	1.40%	2,590		37.611460		97,414	1.15%	36.12%
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%
Wells Fargo AVT – Opportunity FundSM
2007	1.40%	9,617		10.546019		101,421	0.63%	5.46% 0	1/03/07
2006	1.40%	7,818		12.425003		97,139	0.00%	10.65%
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%
Contract Owners’ Equity Total By Year
2007 Contract owners’ equity					$	3,664,580
2006 Contract owners’ equity					$	3,679,671
2005 Contract owners’ equity					$	3,320,112
2004 Contract owners’ equity					$	3,291,752
2003 Contract owners’ equity					$	3,093,116

*	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, such as mortality and expense charges or contingent deferred sales charges, that result in direct reductions to the contractholder accounts 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. In 2007, as a result of the contract and unit value conversion, total returns can not be calculated based on the change in fair unit value disclosed in the report between the years 2006 and 2007. The total return is based on the change between the ending unit value and the initial unit values established for the subaccount.

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 Accounts”)) as of December 31, 2007, 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 Accounts’ 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 audits 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, 2007, 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 Accounts as of December 31, 2007, and the results of their 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.

/s/ KPMG LLP

Columbus, Ohio

April 3, 2008

33

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

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