NOTE 37  PROFIT SHARING AND REBATES  NOTE 38  COMMISSIONS AND EXPENSES  Included in administration expenses above is depreciation  amounting to EUR 88 million (2009: EUR 90 million; 2008:  EUR 84 million) that relates to equipment, software and real  estate held for own use. The direct operating expenses relating  to investments in real estate that generated rental income was  EUR 83 million (2009: EUR 72 million; 2008: EUR 59 million).  Minimum lease payments recognized as expense amounted to  EUR 7 million (2009: EUR 6 million; 2008: EUR 6 million).  Included in employee expenses is EUR 29 million (2009:  EUR 27 million; 2008: EUR 26 million) regarding defined  contribution expenses. Included in the amortization of deferred expenses and VOBA is  EUR (27) million (2009: EUR 78 million; 2008: EUR 14 million)  that is classified for segment reporting purposes as non  underlying earnings as an offset against realized gains and  losses and impairments on financial investments. Included in  employee expenses is EUR 74 million that is classified for  segment reporting purposes as non underlying earnings (2009  and 2008: nil). Senior executives of AEGON companies, as well as other  AEGON employees, have been offered both share appreciation  rights and share options. These share appreciation rights and  share options have been granted at an exercise price equal to  the market price of the shares at the date of the grant. The  rights and options granted in 2004 - 2008 vest after three  years and can only be exercised during the four years after the  vesting date. The rights and options granted in 2003 vest after  two years and can only be exercised during the five years after  the vesting date. Vesting and exercisability depend on  continuing employment of the individual employee to whom the  rights and options have been granted. Option plans are settled  in equity, whilst stock appreciation rights are settled in cash or  provide the employee with the choice of settlement. SHARPENING OUR FOCUS SHARE APPRECIATION RIGHTS AND SHARE OPTIONS Employee expenses 2010 2009 2008 Salaries 1,368 1,311 1,285 Post-employment benefi t costs 258 281 180 Social security charges 134 150 146 Other personnel costs 390 287 303 Share appreciation rights and share options 1 6 (15) TOTAL  2,151 2,035 1,899 2010 2009 2008 Commissions 2,802 2,764 3,072 Employee expenses 2,151 2,035 1,899 Administration expenses 1,182 1,227 1,373 Deferred expenses  (1,611) (1,613) (1,792) Amortization of deferred expenses 1,306 1,212 1,332 Amortization of VOBA and future servicing rights 204 358 225 TOTAL  6,034 5,983 6,109 2010 2009 2008 Amortization of interest rate rebates 47 46 50 Surplus interest bonuses 9 10 10 Profit appropriated to policyholders 27 61 38 TOTAL  83 117 98 199 ANNUAL REPORT 2010