Common use of Practice Expenses Clause in Contracts

Practice Expenses. The term "Practice Expenses" shall mean (a) all reasonable non-shareholder Professionals' salaries, benefits, payroll taxes and other direct costs related to their services at the Office (including reasonable and customary professional dues, subscriptions, continuing education expenses, severance payments, (b) the cost of medical supplies (including, but not limited to, optical supplies, drugs, pharmaceuticals, products, substances, items or medical devices), (c) reasonable and customary professional liability insurance expenses of Professionals, (d) travel costs for continuing education and necessary business travel for non-shareholder Professionals, and (e) costs of goods sold in any optical business of the Practice. Notwithstanding the foregoing, the term Practice Expenses shall specifically exclude (i) business travel requested by Business Manager, which shall be an Office Expense, (ii) any and all compensation or expenses attributable to Shareholders, which shall be a Shareholder Expense (except reasonable and customary expenses for malpractice insurance which shall be a Practice Expense), (iii) "tail" insurance coverage for Shareholders, which shall be a Shareholder Expense, or (iv) such other items agreed to in advance in writing by the Parties hereto. During this Agreement, for so long as a current Shareholder of the Practice is an employee of, or contractor to, or Shareholder of the Practice, such Shareholder shall be deemed to be a Shareholder for the purposes of this definition. Such expenses are to be approved annually in the Budget. Practice Expenses are more specifically described in attached Exhibit "1.18."