Under the FRG system, benefit amounts are generally computed by multiplying lifetime average indexed earnings times a fixed percentage (1.5% for retirement or total disability benefits, 1% for occupational disability benefits) for every year of coverage.  For example, if a worker retires with average indexed earnings of DM 20,000 (10,225 Euros*) after 40 years of coverage the annual retirement benefit at age 65 would equal DM 20,000 (10,225) X 1.5% X 40 = DM 12,000 (6,135 Euros*).  Paragraph 2 explains how article 7.3 is applied in relation to this benefit formula.  In any case where article 7.3 applies, a period of less than 6 quarters of coverage in the U.S. would be used by the FRG only to increase the percent of final average indexed earnings payable as benefits, but not to increase the amount of the average.  See article 8.3 below for an explanation of the general rule for use of U.S. periods of coverage by the FRG.