Document:

Purchase Agreement

 Exhibit 10.1 
 PURCHASE AGREEMENT 
 PURCHASE AGREEMENT, dated as of March 30, 2006 (the
“Agreement”), by and between Nationwide Financial Services, Inc. (the “Issuer”), and UBS AG, London Branch (“UBS”) acting through UBS Securities LLC (“Agent”) as agent. 
 W I T N E S S E T H 
 WHEREAS, the Issuer has publicly announced its intention to repurchase shares of its Class A common stock, par value $0.01 per share
(the “Common Stock”), from time to time (the “Repurchase Program”); and 
 WHEREAS, the Issuer desires to
enter into the Agreement with UBS in order to effect the Repurchase Program; 
 NOW, THEREFORE, in consideration of the
premises, the covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 Section 1. Definitions. 
 As used herein the following terms shall have the meanings set forth below: 
 “Announcement Date” means in respect of a Merger Event, the date of the first public announcement of a firm intention to merge or to make an offer that leads to the Merger Event, as determined by the Calculation Agent. 

“Bankruptcy” means the Issuer is dissolved (other than pursuant to a consolidation, amalgamation or merger);
(2) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (3) makes a general assignment, arrangement or composition with or for the benefit of its
creditors; (4) institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition
is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (A) results in a judgment of insolvency or bankruptcy or the entry of an order
for relief or the making of an order for its winding-up or liquidation or (B) is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (5) has a resolution passed for its
winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee,
custodian or other similar official for it or for all or substantially all its assets; (7) has a secured party take 

 
possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on
or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; (8) causes or is subject to any event
with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (7) (inclusive); or (9) takes any action in furtherance of, or indicating its consent
to, approval of, or acquiescence in, any of the foregoing acts. 
 “Bloomberg Screen Volume at Price Page” shall
mean the display designated as page “NFS Equity AQR” on the Bloomberg Financial Service or such page as may replace the Volume at Price page on that service for the purpose of displaying daily volume and volume-weighted trading prices of
equity securities during the normal trading hours of 9:30 a.m. to 4:00 p.m., New York Time or, if such service does not then publish daily volume and volume-weighted trading prices of the Common Stock, such other page and services selected by the
Calculation Agent that reports daily volume and weighted trading prices of the Common Stock. 
 “Borrowed Shares”
means, as of any date, the number of Shares borrowed by UBS in connection with this Transaction, as determined in good faith by the Calculation Agent. 
 “Calculation Agent” shall mean UBS Securities LLC. 
 “Calculation Date”
means the first Trading Day after the Last Averaging Date. 
 “Closing Price” of the Common Stock on any day shall
mean the last reported sales price regular way on such day or, in case no such sales price is reported on such day, the average of the reported closing bid and asked prices regular way of the Common Stock, in each case on the New York Stock
Exchange, or if not then traded on the New York Stock Exchange the principal securities exchange or quotation system on which the Common Stock is then listed or admitted to trading, or if not then listed or admitted to trading on a securities
exchange or quotation system, the average of the closing bid and asked prices of the Common Stock in the over-the-counter market on the day in question as reported by the National Quotations Bureau Incorporated, or a similarly generally accepted
reporting service, or, if not so available in such manner, as furnished by any New York Stock Exchange member firm selected in good faith by the Calculation Agent. 
 “Combined Consideration” means New Shares in combination with Other Consideration. 
 “Cross Default” means the occurrence or existence of (1) a default, event of default or other similar condition or event (however described) in respect of the Issuer under one or more agreements or
instruments relating to the payment of money in an aggregate amount of not less than $50 million which has resulted in such agreement or instrument becoming, or becoming capable at such time of being declared, due and payable before it would
otherwise have been due and payable (after giving effect to any applicable notice requirement or 

  

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grace period) or (2) a default by the Issuer in making one or more payments on the due date thereof in an aggregate amount of not less than $50 million
under such agreements or instruments (after giving effect to any applicable notice requirement or grace period). 
 “Determined Amount” has the meaning ascribed to it in Section 3(d). 
 “Discount” means
$0.46. 
 “Dividend Event” means the payment of an ordinary or extraordinary dividend of distribution by the Issuer
in any of the time periods specified below with a value, as determined by the Calculation Agent in good faith, that exceeds the amount specified below for such period by $0.01 or more. 
  

				
	 Period
	  	Dividend Amount
	 March 30, 2006 through and including June 30, 2006
	  	$	0.23
	 July 1, 2006 through and including September 30, 2006
	  	$	0.23
	 October 1, 2006 through and including the Last Averaging Date, if later than October 1, 2006
	  	$	0.00

 “Excess Shares” means the number of Shares (if any) equal to (a)(i) the
Settlement Amount divided by (ii) the Reference Price minus (b) the Determined Amount. 
 “Execution
Period” shall mean the period commencing on the First Averaging Date and ending on the earlier of (i) the Last Averaging Date of the last Tranche, (ii) the Merger Event Termination Date or (iii) the Termination Event Termination
Date. 
 “Failure to Pay or Deliver” means failure by the Issuer to make, when due, any payment under this
Agreement or any delivery of Shares under this Agreement required to be made by it if such failure is not remedied on or before the third Trading Day after notice of such failure is given to the Issuer by UBS or the Agent. 
 “Final VWAP-Minus Price” means, in respect of each Tranche, (i) the arithmetic average of daily volume-weighted average
prices of Shares in each Trading Day from the First Averaging Date up to and including the Last Averaging Date in respect of such Tranche, as listed on Bloomberg Screen Volume at Price Page, minus (ii) the Discount. 
 “First Averaging Date” means, with respect to each Tranche, April 3, 2006. 
 “Hedge Account Shares” means, as of any date, the Number of Shares minus the Borrowed Shares. 
  

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 “Last Averaging Date” means a trading day determined by UBS that is no later
than the Latest Completion Date and no earlier than: 
  

	 	 -
	 April 13, 2006 in the case of Tranche One 

  

	 	 -
	 April 21, 2006 in the case of Tranche Two 

  

	 	 -
	 April 28, 2006 in the case of Tranche Three 

  

	 	 -
	 May 5, 2006 in the case of Tranche Four 

  

	 	 -
	 May 12, 2006 in the case of Tranche Five 

  

	 	 -
	 May 19, 2006 in the case of Tranche Six 

 Notice of the Last Averaging Date shall be given by UBS not later than 8:00 pm New York time on the business day following the Last Averaging Date. Notice shall be irrevocable once provided to Issuer. If no notice is
provided, then the Last Averaging Date with respect to each Tranche shall be October 3, 2006. 
 “Latest Completion
Date” means October 3, 2006. 
 “Material Subsidiary” means Nationwide Life Insurance Company, Nationwide
Life and Annuity Insurance Company and Nationwide Life Insurance Company of America. 
 “Merger Event” means, in
respect of any relevant Shares, any (i) reclassification or change of such Shares that results in a transfer of or an irrevocable commitment to transfer all of such Shares outstanding, (ii) consolidation, amalgamation or merger of the
Issuer with or into another entity (other than a consolidation, amalgamation or merger in which such Issuer is the continuing entity and which does not result in any such reclassification or change of all of such Shares outstanding) or
(iii) other takeover offer for such Shares that results in a transfer or an irrevocable commitment to transfer all such Shares (other than such Shares owned or controlled by the offeror), in each case if the Merger Date is on or before the Last
Averaging Date. 
 “Net Share Settlement” shall mean settlement by the Issuer of its obligations hereunder in
accordance with Section 3(c). 
 “New Shares” means shares of the offeror or a third party in connection with
a Merger Event. 
 “Number of Shares” means the quotient of (i) $120,000,000 divided by (ii) the Closing
Price of the Common Stock on March 30, 2006. 
 “Other Consideration” means cash and/or any securities (other
than New Shares) or assets (whether of the offeror or a third party). 
 “Payment Date” has the meaning ascribed to
it in Section 3(b). 
  

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 “Principal Account” means the notional principal account referred to in
Section 3(a). 
 “Purchase Price” has the meaning ascribed to it in Section 2(a) below. 
 “Purchasing Date” means any Trading Day during the Execution Period. 
 “Reference Price” means the Closing Price of the Common Stock on the last Trading Day of the Execution Period . 
 “Settlement Amount” shall mean (i) in the case of the Issuer, the amount of any negative balance in the Principal Account
as of the Calculation Date, and (ii) in the case of UBS, the amount of any positive balance in the Principal Account as of the Calculation Date, in each case as determined by the Calculation Agent, and as adjusted by the Calculation Agent to
reflect the accrual of interest thereon at the rate set forth for that day opposite the caption “Open” under the caption “Federal Funds” as displayed on Bloomberg Page BTMM, from and excluding the third Trading Day following the
Calculation Date hereunder to and including the actual Payment Date, if the Payment Date occurs following the third Trading Day following the Calculation Date hereunder. 
 “Share-for-Combined” means, in respect of a Merger Event, that the consideration for the relevant Shares consists of Combined Consideration. 
 “Share-for-Other” means, in respect of a Merger Event, that the consideration for the relevant Shares consists solely of Other
Consideration. 
 “Share-for-Share” means, in respect of a Merger Event, that the consideration for the relevant
Shares consists (or, at the option of the holder of such Shares, may consist) solely of New Shares. 
 “Shelf
Registration” means a registration statement in form and substance reasonably acceptable to UBS for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act, registering UBS’s resale, in any manner or
manners designated by UBS, of all the Settlement Shares, any Make-Whole Shares, and any other Shares held by UBS in connection with this transaction which, in the opinion of counsel to UBS, are required to be included in the Shelf Registration to be
resold by UBS to the public. 
 “Short Squeeze” shall mean a situation where (i) UBS has determined, in its
judgment, that it is unable to hedge its exposure to the transaction contemplated hereby because of the lack of sufficient shares of Common Stock being made available for borrowing from lenders, including without limitation UBS’ being required
to redeliver shares of Common Stock to any lender at the demand of such lender and not being able to meet such obligation in full in a timely manner by reasonable efforts to borrow shares of Common Stock from another lender, or (ii) UBS would
incur a cost to borrow shares of Common Stock to hedge its exposure to the transaction contemplated hereby that is greater than a rate equal to 50 basis points per annum. 
  

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 “Stock Settlement Amount” shall mean (i) in the case that the Issuer is
required to pay the Settlement Amount to UBS and has elected to pay the Settlement Amount by delivery of shares of Common Stock to UBS pursuant to Section 3(c), an amount, determined by the Calculation Agent, equal to the Settlement Amount to
be paid by the Issuer pursuant to Section 3(a), divided by the Reference Price, and (ii) in the case that UBS is required to pay the Settlement Amount to the Issuer and the Issuer has elected to require UBS to satisfy the obligation by
delivery of shares of Common Stock to the Issuer pursuant to Section 3(h), an amount, determined by the Calculation Agent, equal to the Settlement Amount to be paid by UBS pursuant to Section 3(a), divided by the weighted average price per
share actually paid by UBS to purchase such Stock Settlement Shares. 
 “Stock Settlement Shares” shall mean such
whole number of shares equal to the Stock Settlement Amount. 
 “Termination Event” shall mean the occurrence of a
(i) Bankruptcy, (ii) Cross Default, (iii) Failure to Pay or Deliver, (iv) Short Squeeze or (v) Dividend Event. 
 “Termination Event Termination Date” has the meaning ascribed to it in Section 8 below. 
 “Trading Day” shall mean any day on which the Common Stock is traded on the New York Stock Exchange or, if not then traded on the New York Stock Exchange, the principal securities exchange or
quotation system on which such securities are then traded or, if not then traded on a securities exchange or quotation system, in the over-the-counter market. 
 “Tranche” shall have the meaning ascribed to it in Section 2. 
 Section 2. Purchase and Sale. 
 Subject to the terms and conditions set forth herein, UBS agrees
to sell to the Issuer, and the Issuer agrees to purchase from UBS, shares of Common Stock (the “Shares”) in an amount equal to the Number of Shares for an aggregate purchase price of $120,000,000 (the “Purchase Price”) At 4:00
P.M. on April 4, 2006, UBS shall deliver or cause to be delivered the Shares through the facilities of The Depository Trust Company to the Issuer (the “Settlement Date”), against payment by the Issuer of the Purchase Price, by wire
transfer of immediately available funds. The parties understand and agree that the delivery of the Shares by or on behalf of UBS upon the payment of the Purchase Price by the Issuer is irrevocable and that as of the Settlement Date the Issuer will
be the sole beneficial owner of the Shares for all purposes. The Number of Shares shall be divided into six equal tranches (each, a “Tranche”), which shall be designated, successively, Tranche One, Tranche Two, Tranche Three, Tranche Four,
Tranche Five and Tranche Six. 
 As compensation to UBS for its commitment and services hereunder, the Issuer on the
Settlement Date will pay to UBS by wire transfer of immediately available funds (i) a 

  

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commission equal to $0.025 per share for the Shares to be delivered by UBS hereunder on the Settlement Date and (ii) a transaction fee of $330,165.00
(collectively, the “Contract Fees”). The Contract Fees shall not be subject to refund. 
 Section 3.
Settlement. 
 (a) On the Settlement Date, the Calculation Agent shall establish a notional Principal Account in an
amount equal to the Purchase Price. 
 (i) The Principal Account shall be reduced on the third day following the Last
Averaging Date in respect of each Tranche in an amount equal to the product of (x) the quotient of (i) the Number of Shares divided by (ii) six, and (y) the Final VWAP-Minus Price with respect of such Tranche (the “Final
Tranche Amount”). The parties acknowledge that more than one Tranche may have the same Last Averaging Date; and 
 (ii)
Following the Last Averaging Date in respect of each Tranche, the Principal Account shall be increased each day in order to reflect the accrual of interest on the Final Tranche Amount in respect of such Tranche at the rate set forth for that day
opposite the caption “Open” under the caption “Federal Funds” as displayed on Bloomberg Page BTMM, from and excluding the third Trading Day following the Last Averaging Date in respect of such Tranche, to and including the
Calculation Date. 
 On the first Trading Day immediately following the last day of the Execution Period, the Calculation Agent will
calculate the Settlement Amount and, if applicable, the Stock Settlement Amount, notify (the “Settlement Amount Notification”) the Issuer of the Settlement Amount and, if applicable, the Stock Settlement Amount and provide a schedule of
its calculations thereof. The Calculation Agent shall respond promptly to all questions raised by the Issuer relating to such calculations. If the Issuer objects to the calculation of the Settlement Amount and, if applicable, the Stock Settlement
Amount, the Issuer shall promptly notify the Calculation Agent, and the Issuer and UBS agree to use their good faith best efforts to reach an agreement as to the Settlement Amount and, if applicable, the Stock Settlement Amount. In the further event
that the Issuer and UBS are not able to reach an agreement, the Issuer and UBS shall appoint a third party with sufficient expertise to determine the calculation of the Settlement Amount and, if applicable, the Stock Settlement Amount, and such
calculations shall be binding on both parties. The fees and expenses of such expert shall be shared equally by the Issuer and UBS. 
 (b) On the third Trading Day immediately following the Calculation Date (the “Payment Date”), if the Settlement Amount is positive, UBS shall pay the Settlement Amount to the Issuer and, if the Settlement Amount is negative, the
Issuer shall pay the absolute value of such Settlement Amount to UBS. Except as provided in paragraphs (c) and (d) of this Section, all payments to be made under this Section 3 shall be made on the Payment Date by wire transfer of
immediately available funds. 
  

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 (c) If the Issuer is required to pay the Settlement Amount to UBS pursuant to paragraph
(b) of this Section, the Issuer may, at its option, satisfy the obligation by the delivery to UBS of a number of whole shares of Common Stock (and a payment of cash in lieu of fractional shares, if any) equal to the Stock Settlement Amount. In
order to exercise this option, the Issuer must (each, a “Condition on Net Share Settlement”) (i) notify UBS of its election to have any Settlement Amount payable in shares of Common Stock no later than three days following the Last
Averaging Date in respect of the last Tranche (the “Stock Election Notice”), (ii) enter into a registration rights agreement with UBS in form and substance acceptable to UBS (the “Registration Rights Agreement”) not later
than the 10 days following the Last Averaging Date in respect of the last Tranche, which agreement will contain, among other things, customary representations and warranties and indemnification and other rights, including rights to customary
opinions of counsel and accountant’s “comfort letters,” relating to the registration of the Stock Settlement Shares, the Make-whole Shares and any additional shares of Common Stock as to which UBS is named as a selling securityholder
in the Shelf Registration (the “Registered Shares”); (iii) the Shelf Registration shall have been declared effective by the Securities and Exchange Commission (the “SEC”) not less than fifteen days following the Last
Averaging Date in respect of the last Tranche; and (iv) the Issuer shall use its reasonable best efforts to maintain the effectiveness of the Shelf Registration until all Registered Shares have been sold by UBS. Subject to paragraph 3(g) below,
if any of the conditions in the preceding sentence are not met, the provisions of this paragraph (c) shall be inoperative and the Issuer shall be obligated to pay any applicable Settlement Amount by wire transfer of immediately available funds.
If the Issuer complies with all of its obligations under this paragraph (c), then at 9:30 A.M. on the Payment Date, the Issuer shall deliver to UBS (x) a certificate or certificates representing the fully paid and nonassessable Stock Settlement
Shares, in such denominations and in such names as UBS may specify and (y) the cash payment, if any, in lieu of fractional shares by wire transfer of immediately available funds. The parties understand and agree that the deliveries made
pursuant to the preceding sentence shall be irrevocable and shall satisfy in full the Issuer’s obligations under this Section 3. 
 If the Issuer delivers Stock Settlement Shares to UBS pursuant to this paragraph (c) and within ten Trading Days after the Payment Date, UBS resells all or any portion of the Stock Settlement Shares and the net proceeds received by UBS
upon resale of such shares exceeds the Settlement Amount (or if less than all of the Stock Settlement Shares are resold, the applicable pro rata portion of the Settlement Amount), UBS shall promptly refund in cash such difference to the Issuer;
provided that UBS may, at its option, satisfy its obligation under this sentence by returning to the Issuer any portion of the Stock Settlement Shares that would, if sold, have resulted in net proceeds in excess of the Settlement Amount. In the
event that such net proceeds are less than the Settlement Amount (or if less than all of the Stock Settlement Shares are resold, the applicable pro rata portion of the Settlement Amount), the Issuer shall pay in cash or additional shares of Common
Stock (the “Make-whole Shares”) such difference (the “Make-whole Amount”) to UBS promptly after receipt of notice thereof. In the event that Issuer elects to pay the Make-whole Amount in additional shares of Common Stock, the
requirements set forth in this paragraph (c) with respect to payment of the Settlement Amount in Shares, including Make-whole requirements, shall apply, such that UBS shall pay to the Issuer any such excess and the Issuer shall pay to UBS in
cash or Make-Whole Shares any additional 

  

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Make-Whole Amount. In calculating the net proceeds from the resale of any Stock Settlement Shares there shall be deducted from such proceeds any amount equal
to the customary underwriting discount or commission for underwritten offerings of common stock by companies comparable to the Issuer multiplied by the total number of Shares sold for the account of UBS pursuant to a Shelf Registration. 

(d) Notwithstanding any other provision in this Agreement, if Issuer exercises its right pursuant to Section 3(c) above,
Issuer shall not be obliged to deliver, in connection with this Agreement, in excess of 30 million shares of Common Stock, as recalculated from time to time (the “Determined Amount”). 
 (e) Issuer hereby represents and warrants that it will: 
 (i) calculate the Determined Amount based on the maximum amount able to be calculated in accordance with EITF 00-19 or any successor financial statement guidance; and 
 (ii) in respect of all equity derivative transactions in respect of which Issuer’s equity securities constitute (all or part of) the
instruments underlying such transactions (the “Derivative Trades”), use the same methodology to derive the Determined Amount (howsoever described) applicable to each Derivative Trade as is used to derive the Determined Amount for this
Agreement. 
 (f) UBS agrees that, in respect of any obligations Issuer has duly elected be satisfied pursuant to
Section 3(c) above, in the event of Issuer’s bankruptcy, UBS shall not have rights in bankruptcy that rank senior to the rights in bankruptcy of common shareholders of Issuer. 
 (g) If the Issuer has used its reasonable best efforts to satisfy the Conditions on Net Share Settlement but has been unable to because
the Shelf Registration is not declared effective by the SEC within the time set out in paragraph 3(c) (or, where UBS has previously agreed to extend such period based on a request by the Issuer pursuant to paragraph 3(g)(ii), within
such period as extended pursuant to paragraph 3(g)(ii)), then the Issuer may elect to: 
 (i) deliver
the relevant number of Shares to UBS in which case: 
 (A) the day on which the Issuer makes such an election
to deliver such Shares is the “Issuer Election Date”, and 
 (B) Issuer shall withdraw any
Registration Statement filed with the SEC in connection with the Shares, and 
  

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 (C) Issuer will enter into a private placement purchase agreement with
UBS in form and substance reasonably acceptable to UBS no later than the next Trading Day following the Issuer Election Date, and 
 (D) Issuer shall deliver to UBS such Shares on the Settlement Date which, for the purposes of this paragraph 3(g)(i)(D), shall be the third Trading Day following the Issuer Election Date, and 
 (E) in addition to any Make-whole Amount payable by Issuer pursuant to paragraph 3(c) herein, Issuer shall deliver to UBS
such additional Shares until UBS has realized actual net proceeds upon resale of such Shares equal to the Settlement Amount. At its election, UBS may by a written notice to Issuer retain a number of Shares delivered by Issuer pursuant to this
paragraph 3(g)(i). If UBS so elects, UBS shall be deemed to have sold each such retained Share for an amount equal to the price per Share obtained by UBS in the last Share sold by UBS prior to sending written notice of its intention to retain Shares
to Issuer. In no event will UBS be obligated to exercise its right to retain Shares; or 
 (ii) request UBS to
extend the period within which the Registration Statement is to be declared effective by the SEC for a further period specified in writing by UBS at the time of such extension. 
 (h) If UBS is required to pay the Settlement Amount to the Issuer pursuant to paragraph (b) of this Section, the Issuer may, at its option, elect that UBS satisfy the obligation by the
delivery to the Issuer of a number of whole shares of Common Stock (and a payment of cash in lieu of fractional shares, if any) equal to the Stock Settlement Amount. In order to exercise this option, the Issuer must notify UBS of its election to
have any Settlement Amount payable in shares of Common Stock no later than 15 days prior to the Payment Date (the “Stock Election Notice”). If the condition in the preceding sentence is not met, the provisions of this paragraph
(h) shall be inoperative and UBS shall be obligated to pay any applicable Settlement Amount by wire transfer of immediately available funds. If the Issuer complies with all of its obligations under this paragraph (h), then at 9:30 A.M. on the
Payment Date, UBS shall deliver to the Issuer (i) a certificate or certificates representing the fully paid and nonassessable Stock Settlement Shares, and (ii) the cash payment, if any, in lieu of fractional shares by wire transfer of
immediately available funds. The parties understand and agree that the deliveries made pursuant to the preceding sentence shall be irrevocable and shall satisfy in full UBS’ obligations under this Section 3. 
 Section 4. Anti-dilution Adjustments. 
 (a) Subdivisions and Combinations of Common Stock. In the event that the outstanding shares of the Common Stock shall be subdivided or split into a greater number of shares of Common Stock
where the effective date of such subdivision or the record date for such split occurs during the Execution Period, the number of shares of Common Stock referred to herein shall be deemed to be proportionately increased and the Final VWAP-Minus Price
and Discount shall be deemed to be proportionately decreased; conversely, in case outstanding shares of Common Stock shall each be combined into a smaller number of shares of Common Stock through a combination of shares of Common Stock or a reverse
stock split where the 

  

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effective date of such combination or the record date for such reverse stock split occurs during the Execution Period, the number of shares of Common Stock
referred to herein shall be deemed to be proportionately decreased and the Final VWAP-Minus Price and Discount shall be deemed to be proportionately increased. Any adjustment pursuant to this paragraph (a) shall become effective (i) in the
case of a subdivision or combination of the Common Stock, at the close of business on the record date for such subdivision or combination or (ii) in the case of a stock split or reverse stock split, at the split, at the close of business on the
record date for such stock split or reverse stock split. 
 (b) Merger Events. In respect of each Merger Event, UBS
and the Issuer or the person formed by such consolidation or resulting from such merger or which acquired such assets or which acquires the Issuer’s Common Stock, as the case may be, shall negotiate in good faith to amend this Agreement to give
appropriate effect to such transaction. [In the event that the parties are unable to reach an agreement ten (10) Trading Days prior to the effective date of such transaction (the “Merger Event Termination Date”), (i) the
Execution Period shall terminate on the Merger Event Termination Date, (ii) the Principal Account shall be reduced on such date by an amount equal to the product of (x) an amount equal to the cash and fair market value (as determined by
the Issuer’s Board of Directors whose good faith determination shall be conclusive and binding) of the securities and/or property payable or distributable upon such transaction in respect of one share of Common Stock and (y) the number of
Borrowed Shares as of such date, and (iii) the Settlement Amount shall be further adjusted by the Calculation Agent by the amount that the Calculation Agent reasonably determines in good faith to be UBS’s total losses and costs in
connection with the early termination of this Agreement, including any loss of option value, cost of funding, or loss or cost incurred as a result of its terminating, liquidating, obtaining or reestablishing any hedge or related trading position.

 If payment is required of Issuer in connection with a Merger Event, the Issuer shall have the right, in its sole discretion, to elect (the
“Extraordinary Transaction Election”) to satisfy any such payment obligation by Net Share Settlement of this Transaction PROVIDED THAT, in connection with a “Share-for-Combined” Merger Event or “Share-for-Other” Merger
Event, the Extraordinary Transaction Election is available to satisfy only the percentage of such payment obligation equal to the percentage of the non-cash consideration over the total Combined Consideration (in the case of a
“Share-for-Combined” Merger Event) or total Other Consideration (in the case of a “Share-for-Other” Merger Event). The remaining percentage of such payment obligation must be satisfied in cash. The Issuer shall make any election
to settle the Transaction by way of Net Share Settlement within two Trading Days of the Announcement Date but in any event not less than twenty Trading Days prior to the effective date of such merger. 
 (c) Tender Offers. In the event that an offer is made to the holders of Common Stock to tender shares of Common Stock for cash
(other than an offer constituting a Merger Event), UBS may, in its discretion (i) accelerate the Last Averaging Date or (ii) adjust the Number of Shares. UBS shall notify the Issuer in writing as to the terms of any adjustment made
pursuant to this Section 4(c) no later than 5 days after the tender offer is made. 
  

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 (d) Other Events. In the event of any corporate event of the Issuer not
specifically addressed in subsections (a), (b) or (c) of this Section 4 or in the event that UBS, in its good faith judgment, determines that the adjustments described in subsections (a), (b) or (c) of this Section 4
will not result in an equitable adjustment of the terms of the transaction described herein, and provided that, in each case, such corporate event impacts the rights or obligations of a holder of Common Stock, the terms of the transaction described
herein shall be subject to adjustment by UBS (including, without limitation, the First Averaging Date, the Last Averaging Date and the Number of Shares) as in the exercise of its good faith judgment it deems appropriate under the circumstances in
order to result in an equitable adjustment to this transaction. In the event that the Issuer objects to the adjustments in this Section 4, the Issuer shall promptly so notify UBS, and the Issuer and UBS agree to use their good faith best
efforts to reach an agreement as to the adjustment. In the further event that the Issuer and UBS are not able to reach an agreement, the Issuer and UBS shall appoint a third party with sufficient expertise to determine the adjustment and such
adjustment shall be binding on both parties. The fees and expenses of such expert shall be shared equally by the Issuer and UBS. 
 Section 5. Acknowledgement. 
 The Issuer acknowledges and agrees that it is not relying, and has
not relied, upon UBS or Agent with respect to the legal, accounting, tax or other implications of this Agreement and that it has conducted its own analysis of the legal, accounting, tax and other implications of this Agreement. The Issuer further
acknowledges and agrees that neither UBS nor Agent have acted as its advisor in any capacity in connection with this Agreement or the transactions contemplated by this Agreement. The Issuer acknowledges that neither UBS nor Agent is acting as the
agent for the Issuer in effecting any purchase of Common Stock pursuant to this Agreement. The Issuer understands and acknowledges that UBS and its affiliates may from time to time effect transactions, for their own account or the account of
customers, and hold positions, in securities or options on securities of the Issuer and that UBS and its affiliates may continue to conduct such transactions during the Execution Period. 
 Section 6. Representations and Warranties. 
 (a) The Issuer hereby represents and warrants to UBS that: 
 (i) it has all necessary corporate power and authority to enter into this Agreement and the Registration Rights Agreement and the transactions contemplated hereby and thereby; 
 (ii) this Agreement has been duly authorized, validly executed and delivered by the Issuer and constitutes a valid and
legally binding obligation of the Issuer enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles; 
  

 12 

 (iii) the Registration Rights Agreement, when and if executed and
delivered pursuant to Section 3(c) hereof, shall have been duly authorized, validly executed and delivered by the Issuer and shall constitute a valid and legally binding obligation of the Issuer enforceable in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles; 
 (iv) if Stock Settlement Shares are delivered pursuant to Section 3(c) or Section 3(g), as the case may be, the
Stock Settlement Shares, when delivered to UBS or to the Issuer, as the case may be, will have been duly authorized and will be duly and validly issued, fully paid and nonassessable and free of preemptive and other rights; 
 (v) the transactions contemplated by this Agreement, including the delivery of the Stock Settlement Shares pursuant to
Section 3(c) or Section 3(g), as the case may be, are consistent with the authorization of the Repurchase Program by the Issuer’s Board of Directors; 
 (vi) the Issuer is not entering into this Agreement to facilitate a distribution of the Common Stock (or any security
convertible into or exchangeable for Common Stock) or in connection with a future issuance of securities; 
 (vii) the Issuer is not entering into this Agreement to create actual or apparent trading activity in the Common Stock (or any security convertible into or exchangeable for Common Stock) or to raise or depress the price of the Common Stock
(or any security convertible into or exchangeable for Common Stock); 
 (viii) the repurchase of the Shares by
the Issuer, the compliance by the Issuer with all of the provisions of this Agreement and the consummation of the transactions herein contemplated will not conflict with or result in a breach (each, a “Breach”) of any of the terms or
provisions of, or constitute a default (each a “Default”) under, any indenture, mortgage, deed of trust, loan agreement or any other agreement or instrument to which the Issuer or any of its Material Subsidiaries is a party (collectively,
“Contracts”) or by which the Issuer or any of its Material Subsidiaries is bound or to which any of the property or assets of the Issuer or any of its Material Subsidiaries is subject (except such Breach or Default as would not reasonably
be expected to materially adversely affect the ability of the Issuer to perform its obligations under any Contract), nor will such action result in any violation of the provisions of the Certificate of Incorporation or By-laws of the Issuer, nor
will such action result in any material violation by the Issuer of any applicable statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Issuer or any of its properties; and 
 (ix) no consent, approval, authorization, order, registration or qualification of or with any court or governmental agency
or body having jurisdiction over the Issuer or any of its properties is required for the repurchase of the Shares by the Issuer, the compliance by the Issuer with all the terms of this Agreement, or the consummation by the Issuer of the transactions
contemplated by this Agreement, other than the registration of the 

  

 13 

 
Stock Settlement Shares and any Make-whole Shares under the Securities Act in accordance with the provisions of Section 3(c), which registration shall
be completed not less than fifteen days following the Last Averaging Date in respect of the last Tranche, and such authorizations, orders, registrations and qualifications as may be required under state or securities or blue sky laws in connection
with the resale by UBS of the Registered Shares. 
 (b) UBS hereby represents and warrants to the Issuer: 
 (i) it has all power and authority to enter into this Agreement and the Registration Rights Agreement and the transactions
contemplated hereby and thereby; 
 (ii) this Agreement has been duly authorized, validly executed and
delivered by UBS and constitutes a valid and legally binding obligation of UBS enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general equity principles; and 
 (iii) the Registration Rights Agreement, when and if executed and delivered pursuant to Section 3(c) hereof, shall have been duly authorized, validly executed and delivered by UBS and shall constitute a valid and legally binding
obligation of UBS enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles. 
 Section 7. Indemnification. 
 (a) In the event that UBS becomes involved in any capacity in any action, proceeding or investigation brought by or against any person in
connection with the transactions contemplated by this Agreement, the Issuer periodically will reimburse UBS for its reasonable legal and other expenses (including the reasonable cost of any investigation and preparation) incurred in connection
therewith; provided that such expenses will be promptly refunded to the Issuer to the extent incurred in connection with a matter as to which UBS is not entitled to indemnification under this Section 7. The Issuer also will indemnify and hold
UBS harmless against any losses, claims, damages or liabilities to which UBS may become subject in connection with the transactions contemplated by this Agreement, except to the extent that any such loss, claim, damage or liability results from the
gross negligence or bad faith of UBS in effecting the transactions contemplated by this Agreement. If for any reason the foregoing indemnification is unavailable to UBS or insufficient to hold it harmless, then the Issuer shall contribute to the
amount paid or payable by UBS as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Issuer on the one hand and UBS on the other hand in the transactions
contemplated by this Agreement as well as the relative fault of the Issuer and UBS with respect to such loss, claim, damage or liability and any other relevant equitable considerations. The relative benefits to the Issuer, on the one hand, and UBS,
on the other hand, shall be in the same proportion as the Aggregate Purchase Price bears to the commissions received by UBS pursuant to the last 

  

 14 

 
paragraph of Section 2. The reimbursement, indemnity and contribution obligations of the Issuer under this Section 7 shall be in addition to any
liability which the Issuer may otherwise have, shall extend upon the same terms and conditions to any affiliate of UBS and the partners, directors, officers, agents, employees and controlling persons (if any), as the case may be, of UBS and any such
affiliate and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Issuer, UBS, any such affiliate and any such person. The Issuer also agrees that UBS nor any of such affiliates,
partners, directors, officers, agents, employees or controlling persons shall have any liability to the Issuer for or, in connection with any matter referred to in this Agreement except to the extent that any losses, claims, damages, liabilities or
expenses incurred by the Issuer result from the gross negligence or bad faith of UBS in effecting the transactions that are the subject of this Agreement. The foregoing provisions shall survive any termination or completion of this Agreement.

 (b) Promptly after receipt by UBS or any of its affiliates, partners, directors, agents, employees or controlling persons
entitled to indemnification pursuant to this Section 7 (each, an “Indemnified Party”) of notice of the commencement of any action, such Indemnified Party will, if a claim in respect thereof may be made against the Issuer under this
Section 7, notify the Issuer in writing of the commencement thereof, but the omission so to notify the Issuer will not relieve it from any liability which it may have to any Indemnified Party under this Section 7 except to the extent that
the Issuer’s rights are materially prejudiced as a result of such delay. Upon receipt of such notice, the Issuer shall be entitled to participate at its own expense in the defense, or if it so elects, to assume the defense of such action, in
which event such defense shall be conducted by counsel chosen by the Issuer and reasonably satisfactory to the Indemnified Party or Indemnified Parties who shall be a defendant or defendants in any such action and such defendant or defendants shall
bear the fees and expenses of any additional counsel retained by them; but if the Issuer shall elect not to assume the defense of such action, the Issuer will reimburse such Indemnified Party or Indemnified Parties for the reasonable fees and
expenses of any counsel retained by them; provided however, if the defendants in any such action (including impleaded parties) include both the Indemnified Parties and the Issuer and counsel for the Issuer shall have reasonably
concluded that there may be a conflict of interest involved in the representation by a single counsel of both the Indemnifying Parties and the Issuer, the Indemnified Party or Indemnified Parties shall have the right to select separate counsel,
satisfactory to the Issuer (it being understood, however, that the Issuer shall not be liable for the expenses of more than one separate counsel representing Indemnified Parties who are parties to such action). 
 Section 8. Termination Event. 
 Upon the occurrence of a Termination Event and so long as such Termination Event shall be continuing, UBS may, in its discretion, by notice to the Issuer (the date of such notice and the notice
referred to in the succeeding clause being referred to herein as the “Notice Date”), direct that the Execution Period shall forthwith terminate on the date specified in such notice (the “Termination Event Termination Date”). In
such an event, (i) the Execution Period shall terminate on the Termination Event Termination Date, (ii) the Principal Account shall be reduced on such date by an amount equal to the sum of (A) the product of (x) the number of

  

 15 

 
Hedge Account Shares and (y) the arithmetic average of daily volume-weighted average prices of Shares in each Trading Day from the First Averaging Date
up to and excluding the Notice Date, as listed on Bloomberg Screen Volume at Price Page and (B) the total purchase price paid by UBS for the Shares of Common Stock that are purchased by UBS during the period commencing on and including the
Notice Date to and including the Termination Event Termination Date in order to cover the remaining number of Borrowed Shares, (iii) the Principal Account shall be increased to reflect an appropriate accrual of interest at the Federal Funds
Open Rate, as determined in good faith by the Calculation Agent, to reflect interest earned by UBS in respect of the aggregate Purchase Price received from the Issuer, (iv) the Principal Account shall be decreased to reflect UBS’s actual
cost of borrowing shares of Common Stock to hedge its obligations hereunder as determined reasonably and in good faith by the Calculation Agent, and (v) the Settlement Amount shall be further adjusted by the amount that the Calculation Agent
reasonably determines in good faith to be UBS’ total losses and costs in connection with the early termination of this Agreement, including any loss of bargain, cost of funding, or loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position. In the event that the Issuer objects to any adjustments made pursuant to this Section 8, the Issuer shall promptly notify UBS, and the Issuer and UBS agree to use
their good faith best efforts to reach an agreement as to the adjustment. In the further event that the Issuer and UBS are not able to reach an agreement in respect of any such adjustment, the Issuer and UBS shall appoint a third party with
sufficient expertise to determine the adjustment and such adjustment shall be binding on both parties. The fees and expenses of such expert shall be shared equally by the Issuer and UBS. 
 Section 9. Miscellaneous. 
 (a) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the reminder of the
terms, provisions, covenants and obligations set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
 (b) Assignment. Neither the rights under this Agreement nor the obligations created by this Agreement shall be assignable or delegable, in whole or in part, by either party hereto without
the prior written consent of the other (which consent shall not be unreasonably withheld), and any attempt to assign or delegate any rights or obligations arising under this Agreement without such consent shall be void. 
 (c) Waivers, etc. No failure or delay on the part of either party in exercising any power or right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or
power. No amendment, modification or waiver of any provision of this Agreement nor consent to any departure by either party therefrom shall in any event be effective unless the same shall be in writing and, in the case of a waiver or consent, shall
be effective only in the specific instance and for the purpose for which given. 
  

 16 

 (d) Beneficiaries. This Agreement shall be binding upon, and inure solely to the
benefit of, the Issuer, UBS and, to the extent provided in Section 7 hereof, the affiliates, partners, directors, officers, agents, employees and controlling persons, if any, of UBS, and their respective successors, assigns, heirs and personal
representatives, and no other person shall acquire any rights hereunder. 
 (e) Rights of Set-Off. In addition to any
rights of set-off a party may have as a matter of law or otherwise, upon occurrence of an Event of Default with respect to the Issuer, UBS shall have the right, without prior notice to the Issuer or any other person, to (i) set off any
obligation of the Issuer owing to UBS or any affiliate of UBS against any obligations of UBS or any affiliate of UBS owing to the Issuer, or (ii) for the purpose of cross-currency set-off, convert any obligation to another currency at the
market rate determined by UBS, or (iii) if an obligation is unascertained, in good faith estimate that obligation and set off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained.
Nothing in this Section 9(e) will have the effect of creating a charge or other security interest. 
 (f) Changes of
Law. If, due to any change in applicable law or regulations or the interpretation thereof by any court of law or other body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any
transaction contemplated thereby shall become impracticable or impossible, the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as contemplated by such
provision. 
 (g) Confidentiality. Subject to Section 5(a), to any contrary requirement of law and to the right
of each party to enforce its rights hereunder in any legal action, each party shall keep strictly confidential and shall cause its employees and agents to keep strictly confidential the terms of this Agreement and any information of or concerning
the other party which it or any of its agents or employees may acquire pursuant to, or in the course of performing its obligations under, any provision of this Agreement. In the event disclosure is permitted pursuant to the preceding sentence, the
disclosing party shall (i) provide prior notice of such disclosure to the other party, (ii) use its best efforts to minimize the extent of such disclosure and (iii) comply with all reasonable requests of the other party to minimize
the extent of such disclosure. This Section 9(g) shall not prevent either party from disclosing information as necessary to third-party advisors in connection with the transactions contemplated hereby provided that such advisors agree in
writing to be bound by this Section 9(g) as if a party hereto. UBS hereby consents to the issuance of a press release by the Issuer announcing its entry into this Agreement and the filing with the SEC of a copy of this Agreement. 
 (h) Agent. UBS Securities LLC shall act as “agent” for UBS and the Issuer within the meaning of Rule 15a-6 under the
Exchange Act. The Agent is not a principal to this Agreement and shall have no responsibility or liability to UBS or the Issuer in respect of this Agreement, including, without limitation, in respect of the failure of UBS or the Issuer to pay or
perform under this Agreement. Each of UBS and the Issuer agrees to proceed solely against the other to collect or recover any securities or money owing to it in connection with or 

  

 17 

 
as a result of this Agreement. The Agent shall otherwise have no liability in respect of this Agreement, except for its gross negligence or willful
misconduct in performing its duties as Agent hereunder. As a broker-dealer registered with the SEC, UBS Securities LLC, in its capacity as agent, will be responsible for (i) effecting the transaction contemplated in this Agreement,
(ii) issuing all required notices, confirmations and statements to Buyer and Seller and (iii) maintaining books and records relating to this Agreement. 
 (i) Headings. Descriptive headings herein are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement. 
 (j) Counterparts. This Agreement may be executed by the parties hereto in counterparts, and each such executed counterpart shall
be, and shall be deemed to be, an original instrument and all such counterparts, taken together, shall constitute one and the same instrument. 
 (k) Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein shall be validly given, made or served if in writing and delivered personally, by telegram, by
telecopy or sent by overnight courier, postage prepaid, to: 
  

			
	 UBS AG, London Branch at:
  
 c/o UBS Securities LLC
 677 Washington
Boulevard
 Stamford, CT 06901
 Attention of: Adam Frieman
 Fax Number:  203-719-7031
  
 With a copy to such address to attention of:
 Legal and External Affairs
  

	 the Issuer at:
	  	 One Nationwide Plaza, 1-13-G3
 Columbus, OH 43215

		
	 Attention of:
	  	 Roger W. Green

	 Fax Number:
	  	 614-677-6688

		
	 With a copy to:
	  	 Denise L. Skingle
 Associate General Counsel
 One Nationwide Plaza, 1-35-16
 Columbus, OH 43215

		
	 Fax Number:
	  	 614-249-2418

 or to such other address as any party may, from time to time, designate in a written notice given
in a like manner. Notice given by telegram or telecopy shall be deemed delivered when evidence 

  

 18 

 
of the transmission is received by the sender and shall be confirmed in writing by overnight courier, postage prepaid. Notice given by overnight courier as
set out above shall be deemed delivered the business day after the date the same is mailed. 
 (l) Account Details.

  

			
	 UBS:
  
 Cash Payments for Stock Purchase
 Citibank, New York
 ABA# 021 000 089
 A/C# 4065 2556
 UBS Securities, LLC
  
 Cash Payments for Settlement
 UBS AG Stamford
 f/o UBS AG London Branch
 ABA# 026-007-993
 AC# 101-WA-140007-000
  
 Issuer:

	 Bank: Bank of New York, New York City

	 ABA #:
	  	 021000018

	 Account Name:
	  	 Nationwide Financial Services Inc.

	 Account #:
	  	 8900323973

 (m) Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the state of New York without reference to conflict of law principles. Each party hereto irrevocably submits to the extent permitted under applicable law to the non-exclusive jurisdiction of the federal and
state courts located in the Borough of Manhattan, State of New York. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or proceeding relating to this
Agreement. 
  

 19 

 IN WITNESS WHEREOF, UBS and the Issuer have caused this Agreement to be duly authorized,
executed and delivered as of the date first written above. 
  

			
	 UBS AG, LONDON BRANCH

		
	 By:
	 	 /s/ Akshay Mansukhani

		 	 Name: Akshay Mansukhani

		 	 Title: Associate Director

		
	 By:
	 	 /s/ Dmitriy Mandel

		 	 Name: Dmitriy Mandel

		 	 Title: Executive Director, Equity Risk Management

  

			
	 NATIONWIDE FINANCIAL SERVICES, INC.

		
	 By:
	 	 /s/ Roger W. Green

		 	 Name: Roger W. Green

		 	 Title: Officer, Investor Relations

  

 20Form of NVA Target Award Opportunity and Stock Option Award

 Exhibit 10.2 
  
 THIRD AMENDED AND RESTATED 
 NATIONWIDE FINANCIAL SERVICES, INC. 
 1996 LONG-TERM EQUITY COMPENSATION PLAN 
  
 NVA Target Award Opportunity 
 And Stock Option Award 
  
 Date                         

  
 Name 
 Address 
 Address 
  
 Dear Name: 
  
 Congratulations on your selection as a Participant in the Third Amended and
Restated Nationwide Financial Services, Inc. 1996 Long-Term Equity Compensation Plan (the “Plan”) and your receipt under the Plan of an NVA Target Award Opportunity and a Stock Option Award. 
  
 This agreement, which includes Annexes A and B hereto (the “Award
Agreement”), together with the Plan (available on the Human Resources/Executive Performance and Rewards Services Website), provides a complete detail of your rights with respect to your NVA Target Award Opportunity and your Stock Option Award.
If there is any inconsistency between the terms of this agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms used in this Award Agreement
have the same meaning as in the Plan, unless otherwise defined in this Award Agreement. 
  
 You are being asked to read and understand your rights under the Plan, this Award Agreement (including Annex A and B attached), and the terms and conditions which may limit your rights under your Award Opportunities.

  
 Please sign and return the attached signature page as
acceptance of the terms and conditions hereof and your participation in the Plan by [date], 200[6]. 

 Following are the key terms of your NVA Target Award Opportunity and your Stock Option
Award: 
  

			
	 NVA Target Award Opportunity

	  	 Stock Option Award

	 NVA Performance Period:
  
 Target NVA Award:* $
	  	 Option Type: [Incentive] [Non-Qualified]
  
 Date of Grant:                     ,
200  
  
 Number of Shares:
                    
  
 Exercise Price: $             per share
  
 Option Term:

  
 *This is the amount
that would be credited to your “NVA Award Bank” (described in Annex A) if target levels of NVA (described in Annex A) performance (described in Annex A) are achieved over the NVA Performance Period. As explained below, your NVA Award Bank
will be credited (or debited) based on actual NVA performance and there is no guaranty that the target annual contribution will be achieved. 
  
 ** As described in Annex B hereto, your Stock Option Award may expire sooner if your employment terminates. 
  
 Further terms and conditions applicable to your NVA Target Award Opportunity
and Stock Option Award are set forth in the Plan and Annexes A and B hereto, each of which is an integral part of this Award/Opportunity Agreement. The terms and conditions contained in Annex A hereto supersede the terms and conditions contained in
any prior Award Opportunity documents (including any attached Annexes). 
  
 Please refer any questions you may have regarding your NVA Target Award Opportunity or Stock Option Award to Beth Owens, Director, Compensation and Benefits at (614) 249-3544. Once again, congratulations on receipt of your NVA Target
Award Opportunity and Stock Option Award. 
  
 Sincerely,

  
 Nationwide Financial Services, Inc. 
  
 Terri L. Hill 
 Executive Vice President-Chief Administrative Officer 
  

 2 

 Please acknowledge your agreement to participate in the Plan, to accept your NVA Target Award Opportunity
and Stock Option Award, and to abide by all of the governing terms and conditions of the Plan and this Award Agreement, by signing the following representation: 
  

Agreement to Participate 
  
 By signing a copy of this Award Agreement and returning it to Beth Owens, Compensation and Benefits
(1-26-11), [a] I acknowledge that I have read the Plan and this Award Agreement (including Annexes A and B hereto), and that I fully understand all of my rights under the Plan and this Award Agreement (including Annexes A and B hereto), as well as
all of the terms and conditions which may limit my rights under my NVA Target Award Opportunity and my Stock Option Award; and [b] I consent to the adjustment of my NVA Award Bank balance to reflect the true-up adjustments approved by the Committee
relating to the prior overstatement of NVA performance. I further acknowledge and agree that the Company at its discretion may combine/transfer the NVA Award bank balance under the Plan to my NVA Award Bank under the Third Amended and Restated
Nationwide Financial Services, Inc. Long-Term Equity Plan, as may be further amended from time to time. Without limiting the generality of the preceding sentence, I understand that my rights under my NVA Target Award Opportunity and my Stock Option
Award may be adversely affected if my employment terminates during the Performance Period. 
  

					
	 [Participant’s Name] (please print)
	  	 	 	 Participant’s Signature

  
 Please note: Sign
and return one copy of this Award Agreement to Beth Owens, Compensation and Benefits (1-26-11) and retain one copy for your records. 
  

 3 

 ANNEX A 
  
 NVA Target Award Opportunity 
  
 It is understood and agreed that the NVA Target Award Opportunity evidenced by the Award Agreement to which this is annexed is subject to the following
additional terms and conditions. 
  

	1.	 Overview of Your NVA Target Award Opportunity. As described below, your NVA Target Award Opportunity provides you with an opportunity to have your NVA
Award Bank credited (or debited) based on the Enterprise’s NVA performance over the NVA Performance Period, and to receive a distribution equal to 1/3 of any positive balance in your NVA Award Bank after the close of the NVA Performance Period.

  

	 	a)	 NVA Award Bank. The Company will maintain a bookkeeping account in your name (your “NVA Award Bank”) and, based on the Enterprise’s NVA
performance over the NVA Performance Period, will credit (or debit) your NVA Award Bank as soon as practicable after the last day of the NVA Performance Period in accordance with the following formulas: 

  

	 	i)	 NIACC: 

  
 NIACC  =  50%  x  Target  x   [Actual Return Rate] 
 Cost of Capital * 
  

	 	ii)	 CHANGE IN NIACC: 

  
 CHANGE IN NIACC  =  50%  x  Target  x  [1 + (3 x (change in NIACC - (.5% x Year-End Capital)))] 
 Hurdle Net Income 
  

	 	iii)	 “Actual Return Rate”  =   Adjusted GAAP Net
Income 

 Average CapitalYear1 
  

	 	iv)	 “Hurdle Net Income” = Cost of Capital x Average Capital Year1  

  
 You will be notified of the Enterprise’s NVA and NIACC performance as soon as practicable after the last day of the NVA Performance Period. 
  

	 	b)	 Determination of NVA Performance. NVA performance will be determined by the Committee based on the following metrics: 

  

 4 

	 	i)	 NIACC. NIACC is measured based on the incremental change in Enterprise value created by the current year’s economic results, as follows:

  
 NIACC  =  adjusted
GAAP net income  -  [average adjusted GAAP capital   x  Cost of Capital] 
  
 Target NIACC performance is achieved if NIACC equals zero. 
  

	 	ii)	 CHANGE IN NIACC. Change in NIACC is measured based on the change in NIACC from one year to the next during the NVA Performance Period, as follows:

  
 Change in
NIACC  =  NIACC Year1   -  NIACC Year0 
  
 Target CHANGE IN NIACC is achieved if CHANGE IN NIACC multiplied by three (3) equals one-half of one percent (0.5%) times the
year-end capital. 
  
 * For purposes of
this Award Agreement, Cost of Capital means the expected return for the Enterprise given its risk profile. The Committee shall determine the Cost of Capital at least annually and communicate the Cost of Capital percentage to you within a reasonable
time after the determination is made. 
  

	 	c)	 Distribution. Subject to Section 2 below, you will receive a distribution equal to 1/3 of any positive balance in your NVA Award Bank (less
applicable tax withholding) as soon as practicable after the Committee credits (or debits) your NVA Award Bank pursuant to subsection 1(a) above; provided, however, that such payment shall in all events be made within the calendar year immediately
following the close of the NVA Performance Period. 

  
 No distribution will be made if, after the credit (or debit) is made to your NVA Award Bank pursuant to subsection 1(a) above, your NVA Award Bank has a negative balance; however, in no event will you be obligated to
make a payment to the Company (or repay an amount previously distributed) because of a negative balance in your NVA Award Bank. 
  
 Your NVA Award Bank, reduced by any distribution made pursuant to this subsection 1(c), will be carried forward and added to the next NVA
Target Award Opportunity that you receive. 
  

	2.	 Termination. If your employment terminates prior to the last day of the NVA Performance Period, the Company’s obligation to make a contribution to
your 

  

 5 

 NVA Award Bank pursuant to subsection 1(a) above and your right to receive a distribution
pursuant to subsection 1(c) above shall be as follows: 
  

	 	a)	 Termination of Employment due to Death, Disability or Retirement. If your employment is terminated during the NVA Performance Period by reason of
your death, Disability or Retirement, a pro-rata award for the NVA Performance Period will be credited (or debited) to your NVA Award Bank and you will receive three equal distributions from your NVA Award Bank. Each distribution will be equal to
1/3 of any positive balance in your NVA Award Bank after the prorated amount is credited (or debited) pursuant to the preceding sentence, less applicable tax withholding (the “Termination Distributions”). The Termination Distributions
shall be made at the same time distributions from NVA Award Banks are made to other participants in the three calendar years immediately following the NVA Performance Period for this NVA Award. If distributions are not made to other Participants in
such years, the Termination Distributions shall be made on such dates in the three applicable calendar years as the Committee shall determine. However, payment from the NVA Award Bank may be accelerated if your termination of employment is due to
your death and the beneficiary of your Award is your estate. The executor or other authorized representative of your estate may request acceleration of the distribution method otherwise applicable pursuant to this Award Agreement. For purposes of
clarity, except for prorated credits or debits made pursuant to the first sentence of this Section 2(b), no credits or debits will be made to or from your NVA Bank Award following termination of employment. 

  

	 	b)	 Termination of Employment for Other Reasons. If your employment terminates during the NVA Performance Period for any reason other than death,
Disability or Retirement, your NVA Award Bank shall be forfeited provided, however, that unless your employment is terminated for Cause, the Committee, in its sole discretion, may make a prorated credit (or debit) to your NVA Award Bank and may
allow you to receive a prorated amount of the distribution you would have received in [2007] had your employment not terminated (the “Prorated Distribution”). The proration of any such Prorated Distribution shall be based on the portion of
the NVA Performance Period that you were employed, and shall be paid (subject to applicable tax withholding) at the same time distributions from NVA Award Banks are made to other Participants in [2007]. If distributions are not made to other
Participants in such calendar year, distributions shall be made on such date in [2007] as the Committee shall determine. The remaining portion of your NVA Award Bank shall be forfeited. 

  

	3.	 Retirement. For purposes of your NVA Target Award Opportunity, “Retirement” shall mean termination of your employment with the Company on or
after the date on which you shall have: 

  

	 	a)	 Attained Normal Retirement Age; 

  

 6 

	 	b)	 Attained age 55 and completed 180 Months of Vesting Service; or 

  

	 	c)	 Attained age 62 and completed 60 Months of Vesting Service, whichever is earliest. 

  
 For purposes of this Section 3, Normal Retirement Age
and Months of Vesting Service shall have the meanings assigned to them in the Nationwide Retirement Plan. 
  

	4.	 Cause. For purposes of your NVA Target Award Opportunity, “Cause” shall mean (a) willful misconduct on your part that is materially
detrimental to the Company; or (b) your conviction of a felony or crime involving moral turpitude; provided, however, that if you have entered into an employment agreement that is binding as of the date of employment termination, and if such
employment agreement defines “Cause,” such definition of “Cause” shall apply. “Cause” under either (a) or (b) shall be determined in good faith by the Committee in its sole discretion.

  

	5.	 Tax Withholding. The Company shall have the power and right to deduct or withhold, or require you to remit to the Company, an amount sufficient to satisfy
applicable federal, state, and local tax withholding obligations arising with respect to any payment associated with your NVA Target Award Opportunity. With respect to the minimum statutory tax withholding required in connection with the
distribution of any Shares under your NVA Target Award Opportunity, you may elect to satisfy such withholding requirement by having the Company withhold Shares in accordance with Section 17.2 of the Plan. In addition, Shares having a Fair
Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes) that could be imposed on the transaction shall automatically be withheld from your NVA
Target Award Opportunity if and to the extent you fail to timely remit the Company an amount sufficient to satisfy (or fail to make arrangements with the Company for the timely satisfaction of) applicable tax withholding obligations.

  

	6.	 Section 409A Compliance. To the extent applicable, it is intended that the terms of this NVA Award Opportunity (and any deferral thereof) comply with
the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the
Internal Revenue Service (“Section 409A”). Any provision hereof or in the Plan (and any rights conveyed hereby or thereby) that would cause this NVA Target Award Opportunity and any amounts payable with respect to this NVA Target Award
Opportunity (or any other plan or award) to fail to satisfy Section 409A shall have no force or effect until amended to comply with Section 409A, which amendment may be retroactive to the extent permitted by Section 409A. In addition,
payment of amounts under this Agreement may be delayed for up to six months following termination of your employment if (and to the extent) deemed necessary by the Committee to comply with Section 409A(a)(2)(B) of the Code.

  

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 ANNEX B 
  
 Stock Option Award 
  
 It is understood and agreed that the Stock Option Award evidenced by the Award Agreement to which this is annexed is subject to the following additional
terms and conditions. 
  

	1.	 Vesting and Exercise of Your Stock Option Award. Your Stock Option Award does not provide you with any rights or interest therein until it vests and
becomes exercisable. Your Stock Option Award will vest and become exercisable as follows: 

  

	a)	 [Percentage/ratio/amount] of your Stock Option Award shall become vested and exercisable on [each of the first, second, third] anniversarie(s) of the Date of
Grant, provided you have continued in the employment of the Company or an Affiliate through such anniversary dates; 

  

	b)	 Upon your termination of employment due to death, Disability or Retirement, any unvested portion of your Stock Option Award shall vest and become exercisable;
and 

  

	c)	 At the sole discretion of the Committee, upon your termination of employment by reason of dismissal for the convenience of the Company or an Affiliate or your
termination of employment (other than your Retirement) coincident with the receipt of benefits under a funded or unfunded retirement plan or arrangement of the Company or an Affiliate, any unvested portion of your Stock Option Award shall vest and
become exercisable. 

  

	2.	 How to Exercise. Your Stock Option Award may be exercised by written notice to the Company’s Compensation and Benefits department, specifying the
number of Shares you then desire to purchase, which may not be fewer than twenty-five (25), together with provision for payment of the Exercise Price. Subject to such limitations as the Committee may impose (including prohibition of one or more of
the following payment methods), payment of the Exercise Price may be made by (a) check payable to the order of Nationwide Financial Services, Inc., for an amount in United States dollars equal to the aggregate Exercise Price of such Shares,
(b) tendering to the Company Shares of Common Stock having an aggregate Fair Market Value (as of the trading date immediately preceding the date of exercise) equal to such Exercise Price, (c) broker-assisted exercise, or (d) a
combination of such methods. 

  
 As soon as practicable after receipt of such written notification, payment of the Exercise Price and satisfaction of applicable tax withholding obligations, the Company shall issue or transfer to you the number of Shares with respect to
which your Stock Option Award is exercised and shall deliver to you a certificate or certificate thereof, registered in your name. 
  

 8 

	3.	 Who Can Exercise. During your lifetime, your Stock Option Award shall be exercisable only by you. Your Stock Option Award may not be transferred or
assigned except by will or the laws of descent and distribution. 

  

	4.	 Termination of Your Stock Option Award. If your employment terminates during the Option Term, any portion of your Stock Option Award that is not (and does
not become) vested and exercisable on the date your employment terminates shall immediately terminate and be of no force or effect. Any portion of your Stock Option Award that is (or becomes) vested and exercisable on the date your employment
terminates shall continue to be exercisable until your Stock Option Award terminates in accordance with the following: 

  

	 	a)	 If your employment terminates during the Option Term by reason of death or Disability, the vested portion of your Stock Option Award will terminate and have no
force or effect upon the earlier of one (1) year after the date of death or Disability or the expiration of the Option Term; 

  

	 	b)	 If your employment terminates during the Option Term by reason of Retirement, the vested portion of your Stock Option Award will terminate and have no force or
effect upon the earlier of five (5) years after the date of Retirement or the expiration of the Option Term; 

  

	 	c)	 If your employment terminates during the Option Term due to your dismissal for the convenience of the Company or an Affiliate, the vested portion of your Stock
Option Award will terminate and have no force or effect upon the earlier of three (3) months after the date of termination of employment (or such longer period as may be determined in the sole discretion of the Committee) or the expiration of
the Option Term; 

  

	 	d)	 If your employment terminates during the Option Term for any other reason, the vested portion of your Stock Option Award will terminate and have no force or
effect upon the earlier of three (3) months after the date of termination of employment or the expiration of the Option Term; and 

  

	 	e)	 If you continue in the employ of the Enterprise through the Option Term, the vested portion of your Stock Option Award will terminate and have no force or effect
upon the expiration of the Option Term. 

  

	5.	 Retirement. For purposes of this Stock Option Award, “Retirement” shall mean your termination of employment on or after the date on which you
shall have: 

  

	 	a)	 Attained Normal Retirement Age; 

  

	 	b)	 Attained age 55 and completed 180 Months of Vesting Service; or 

  

	 	c)	 Attained age 62 and completed 60 Months of Vesting Service, whichever is earliest. 

  

 9 

 For purposes of this Section 5, Normal Retirement Age and Months of Vesting Service
shall have the meanings assigned to them in the Nationwide Retirement Plan. 
  

	6.	 Cause. For purposes of this Stock Option Award, “Cause” shall mean (a) willful misconduct on your part that is materially detrimental to
the Company; or (b) your conviction of a felony or crime involving moral turpitude; provided, however, that if you have entered into an employment agreement that is binding as of the date of employment termination, and if such employment
agreement defines “Cause,” such definition of “Cause” shall apply. “Cause” under either (a) or (b) shall be determined in good faith by the Committee in its sole discretion. 

  

	7.	 Tax Withholding. The Company shall have the power and right to deduct or withhold, or require you to remit to the Company, an amount sufficient to satisfy
applicable deferral, state, and local taxes withholding obligations arising with respect to your Stock Option Award. With respect to the minimum statutory tax withholding required in connection with the exercise of your Stock Option Award, you may
elect to satisfy such withholding requirement by having the Company withhold Shares in accordance with Section 17.2 of the Plan. In addition, Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum
statutory withholding rates for federal and state tax purposes, including payroll taxes) that could be imposed shall automatically be withheld upon exercise of your Stock Option Award if and to the extent you fail to timely remit the Company an
amount sufficient to satisfy (or fail to make arrangements with the Company for the timely satisfaction of) applicable tax withholding obligations. 

  

	8.	 Section 409A Compliance. To the extent applicable, it is intended that the terms of this Stock Option Award (and any deferral thereof) comply with
the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the
Internal Revenue Service (“Section 409A”). Any provision hereof or in the Plan (and any rights conveyed hereby or thereby) that would cause this Stock Option Award and any amounts payable with respect to this Stock Option Award (or any
other plan or award) to fail to satisfy Section 409A shall have no force or effect until amended to comply with Section 409A, which amendment may be retroactive to the extent permitted by Section 409A. In addition, payment of
amounts under this Agreement may be delayed for up to six months following termination of your employment if (and to the extent) deemed necessary by the Committee to comply with Section 409A(a)(2)(B) of the Code. 

 

 10

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