251 ANNUAL REPORT 2010 Reverse repurchase agreement  is a purchase of securities with  the agreement to resell them at a later specified date and price. Security lending  involves a loan of a security from one party  to another.  Settlement date  is the date that a financial asset is delivered  to the entity that purchased it. Sovereign exposures  are AAA rated government bonds, or  lower rated government bonds if purchased in local currency  by a reporting unit. Spot exchange rate  is the exchange rate for immediate  delivery. Spread  is the difference between the current bid and the  current ask or offered price of a given security. Stochastic modeling  is a statistical process that uses  probability and random variables to predict a range of probable  investment performances.  Temporary differences  are differences between the carrying  amount of an asset or liability in the balance sheet and its tax  base that will reverse over time. Trade date  is the date that an entity commits itself to purchase  or sell an asset. Transaction costs  are incremental costs that are directly  attributable to the acquisition, issue or disposal of a financial  asset or liability. Trust pass-through securities  are securities through which  the holders participate in a trust. The assets of these trusts  consist of debentures issued by an AEGON Group company. Unlocking  of DPAC and VOBA refers to the process of updating  the DPAC or the VOBA amortization schedule to reflect changes  between the past and current expectations of key assumptions  used in the projection of future gross profits.  Value of business acquired (VOBA)  the difference between the  fair value and the carrying amount of the insurance liabilities  recognized when a portfolio of insurance contracts is acquired  (directly from another insurance company or as part of a  business combination). SHARPENING OUR FOCUS