(1) Any pension and any annuity derived from sources within one
of the Contracting States by an individual who is a resident of the
other Contracting State and subject to tax in that other State in
respect thereof shall be exempt from tax in the first-mentioned
(2) The term `annuity` means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.