Cognos Exhibit 10.25









Exhibit 10.25 



Attention!  There may be tax
consequences associated with the acceptance or exercising of options granted under this
agreement.  Tax laws vary by jurisdiction. You should consult with your tax
professional before accepting or exercising these options. 








STOCK OPTION AGREEMENT  



        THIS
AGREEMENT is made as of the ____ day of _______, 200__, by and between: 




	COGNOS INCORPORATED, a company 	 		 	First and Last name of Employee  	 
	incorporated under the laws of Canada	 	- and - 	 
	(hereinafter called the "Company") 	 		 	(hereinafter called the "Employee") 	 




WHEREAS the Employee is an employee
of the Company or a subsidiary of the Company; 



AND WHEREAS the Company has agreed to
grant a stock option to the Employee pursuant to the Company’s 2003-2008 Stock Option
Plan (Incentive and Non-Qualified) (the “Plan”) upon the exercise of which the
Employee may acquire common shares (hereinafter called “Common Shares”) in the
capital stock of the Company as constituted at the date hereof; 



AND WHEREAS the purchase price per
Optioned Share (as hereafter defined) is not less than the fair market value of the Common
Shares on the date hereof; 



AND WHEREAS the stock option
evidenced by this Agreement is subject to all of the terms and conditions of the Plan
which shall govern in the event of a conflict with the terms and conditions of this
Agreement. 



NOW THEREFORE the parties agree as
follows: 



	1.  	  	        The
Company hereby grants to the Employee, as of the date hereof, subject to the
          terms and conditions set out herein and in the Plan, an option to
          purchase Common Shares (hereinafter called the “Optioned
          Shares”) at a price of $XX.XX CDN per share, the said option to
          terminate at 5:00 p.m. Ottawa time on the dates indicated below (hereinafter
          called the “Expiry Date(s)”) and in the meantime being
          exercisable on the dates indicated below (hereinafter called the
          “Exercise Date(s)”):  






		OPTIONED 	  	OPTION 	  	EXERCISE 	  	EXPIRY 	  
		SHARES  	   	TYPE  	   	DATE(S)  	   	DATE(S)  	 










	  	
If,
at any time between the Exercise Date and the Expiry Date, the employee does not exercise
his/her option as to all of the Optioned Shares in respect of which the option is
exercisable on such date, then the Employee will be entitled at any subsequent time or
times up to the Expiry Date to purchase such Optioned Shares in respect of which the
option has not been exercised.  






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	2.  	  	          If
before the Expiry Date, the Employee’s employment with the Company or           one
of its subsidiaries is terminated for “cause” as defined in the           Plan,
the Employee’s options shall terminate on the last day of employment           with
the Company and shall thereafter not be exercisable. If before the Expiry           date,
the Employee’s employment with the Company or one of its subsidiaries           is
terminated for reasons other than “cause” (as defined in the Plan),
          or if before the Expiry Date the Employee resigns from the Company or one of
its           subsidiaries, then the Employee, within thirty (30) days after the date of
such           termination or resignation (but in no event later than the specified
expiration           date), can exercise the option as if he/she had continued to be an
employee of           the Company and to the extent that he/she had a right under
Paragraph 1 of this           Agreement to exercise the option at the date of such
termination or resignation.           At the end of such thirty (30) day period, this
option shall cease and terminate           and be of no further force or effect
whatsoever.  






	3.(a)  	  	      In
the event of the death of the Employee, all options granted to the Employee
          shall become exercisable immediately prior to the death of the Employee, and
          his/her estate, personal legal representative or beneficiary who has acquired
          the options by will or by the laws of descent and distribution, may exercise
the           options to the extent that the Employee could have exercised them, at any
time           on or before the earlier of (i) the first (1st) anniversary of
the           date of the Employee’s death if the Employee is an executive officer,
(b)           the second (2nd) anniversary of the date of the Employee’s
death           for all other cases, or (c) the specified expiration date of the option.
At the           end of the applicable period, the option hereby granted shall forthwith
cease           and terminate and be of no further force or effect.  






	3.(b)  	  	         If
an Employee ceases to be employed by the Company by reason of his or her
          retirement (as defined in the Plan), no further installments of an option will
          become exercisable and such Employee shall have the right to exercise any
option           held by him or her on the date of retirement from employment, to the
extent           otherwise exercisable on that date, any time on or before the earlier of
(i) the           second (2nd) anniversary of that date, and (ii) the
specified           expiration date of the option. If the Employee dies or is
incapacitated during           that period, then the Employee’s personal
representative may exercise the           foregoing rights.  






	4.  	  	      The
option hereby granted is non-transferable and shall be exercisable only by           the
Employee or his/her personal representative from time to time, by giving           notice
in writing to the Company referring to this Agreement and setting forth           the
number of Optioned Shares in respect of which the option is then being
          exercised, and such notice shall be accompanied by cash or a certified cheque
          payable to the Company in the full amount of the purchase price for the
Optioned           Shares being purchased. Such notice shall specify the address to which
the share           certificate or certificates shall be sent, and any such share
certificate or           certificates shall be sufficiently sent if mailed postage
prepaid in an envelope           addressed to the Employee at such address.  






	5.  	  	      In
the event of any subdivision of the Common Shares of the Company, as those
          shares are now constituted, into a greater number of shares at any time while
          this option is outstanding and in the case of the issue of shares of the
Company           to the holders of its outstanding Common Shares by way of stock
dividend or           dividends (other than an issue of shares to shareholders pursuant
to their           exercise of options to receive dividends in the form of shares of the
Company in           lieu of cash dividends declared payable in the ordinary course by
the Company on           its Common Shares), the Company shall thereafter deliver at the
time of purchase           of shares pursuant to the exercise of the option hereby
granted, in lieu of the           number of Common Shares in respect of which the option
to purchase is being           exercised as provided for herein, such greater number and
such other class of           shares of the Company as the Employee would have been
entitled as a result of           such subdivision, or such stock dividend had the option
been exercised before           such subdivision or stock dividend.  






	6.  	  	          In
the event of any consolidation of the Common Shares of the Company into a
          lesser number of shares at any time while this option is outstanding, the
          Company shall thereafter deliver and the Employee shall accept, at the time of
          any purchase of shares pursuant to the exercise of the option hereby granted,
in           lieu of the number of Common Shares in respect of which the option to
purchase           is being exercised as provided herein, such lesser number of shares of
the           Company as the Employee would have been entitled as a result of such
          consolidation had the option been exercised before such consolidation.  






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	7.  	  	         In
the event of any reclassification of the Common Shares of the Company at any
          time while this option is outstanding, the Company shall thereafter deliver and
          the Employee shall accept, at the time of purchase of shares pursuant to the
          exercise of the option hereby granted, in lieu of the number of Common Shares
in           respect of which the option to purchase is being exercised as provided for
          herein, the number of shares of the Company of the appropriate class or classes
          as the Employee would have been entitled as a result of such reclassification.  






	8.  	  	       Other
than the right to receive the Optioned Shares on the exercise of the           option in
accordance herewith, the Employee shall have no rights as a           shareholder in
respect of the Optioned Shares until after the exercise.  






	9.  	  	          The
Employee acknowledges that the Company’s obligation to issue and           deliver
Optioned Shares is subject to (a) completion of such registration or           other
qualification of such shares or obtaining approval of such government           authority
as the Company shall determine to be necessary or advisable in           connection with
the authorization, issuance or sale thereof; (b) the admission           of such shares
to listing on any stock exchange on which the Company’s           Common Shares may
then be listed; and (c) the receipt from the Employee of such           representations,
agreements and undertakings as to future dealings in such           shares as the Company
determines to be necessary or advisable in order to           safeguard against the
violation of the securities laws of any jurisdiction. In           this connection, the
Employee agrees that (a) no sale or transfer of any or all           of the Optioned
Shares will be made except pursuant to an opinion of counsel           satisfactory to
the Company to the effect that such sale or transfer will not           result in the
violation of applicable securities laws; and (b) the Company may           cause the
certificates representing the Optioned Shares to bear a legend           referring to the
foregoing restriction on transfer and that the Company may           issue to its
transfer agent “stop transfer” instructions with respect           to the
Optioned Shares.  






	10.  	  	        The
Employee acknowledges that all decisions and interpretations of the Board of
          Directors respecting this stock option or the Plan shall be conclusive and
          binding on all holders of options granted thereunder.  






	11.  	  	         The
Employee shall not be entitled to assign this Agreement, any of the rights           or
benefits provided for herein except as provided for in the Plan. Time shall           be
the essence of this Agreement. This Agreement shall be binding upon any
          successor or successors of the Company.  







	COGNOS INCORPORATED 	 	)	 
		 	)	 	 	 
		 	)	 
		 	)	 
	Per: ____________________________	 	)	 	________________________________	 
	        W. John Jussup	 	)	 	First and Last Name of Employee	 
	        Vice-President,	 	)	 
	        Chief Legal Officer & Secretary	 	)	 







	  	
Attention! There
may be tax consequences associated with the acceptance or exercising of options granted
under this agreement.  Tax laws vary by jurisdiction. You should consult with
your tax professional before accepting or exercising these options  







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