definiens: shall mean PAR 's Net Sales of the Product minus PAR 's Cost of Goods to manufacture and package the Product . shall mean : a. ) NORTEC 's transfer price to PAR to supply the Product to PAR under the Supply Agreement outlined in Article 9.1, plus ; b. ) PAR 's direct out - of­pocket costs for all pack(9 · raw materials needed to package the Product for commercial sale, plus ; c 25«Y < of a. ) and b. ) above in respect of PAR 's cost of direct labor for packag uality assurance, quality control, release of the Product, administrative costs and overhead, plus ; d. ) PAR 's direct out - of - pocket costs for all active pharmaceutical and excipient raw material ingredients contained in the un - packaged Product . In no event shall the Gross Profit computation and royalty cap outlined in this Article 3.2 cause the minimum 5 royalty payable to NORTEC to be lower th<:.1;;;l of the royalty amounts listed in the Royalty Payment Schedule for each ; ~ share level as outlined in this Article 3.2