Document:

Cognos Form 10-K Exhibit 10.45

Exhibit 10.45

	  	THIS
INDEMNIFICATION AGREEMENT (the “Agreement”)
is made as of this 1st day of December 2005, between COGNOS INCORPORATED (the
“Corporation”) and ROBERT G. ASHE (the “Indemnified Party”).  

	  	RECITALS:  

	A. 	Certain
of the Corporation’s officers and directors may be subject to           personal
liability due to the nature of the services and activities they           complete on
behalf of the Corporation. 

	B. 	The
Board of Directors of the Corporation (the “Board”) has
          determined that the Corporation should act to assure such officers and
directors           who are at risk of potential personal liability as a result of their
position           with the Corporation, including the Indemnified Party, should be
provided           reasonable protection through indemnification to the extent permitted
by law. 

	  	NOW
THEREFORE the parties agree as follows:  

	1. 	Indemnification.    The
Corporation will indemnify and save harmless the           Indemnified Party and the
heirs and legal representatives of the Indemnified           Party to the fullest extent
permitted by applicable law:  

	  	1.1    
from and against           all Expenses (as defined below) sustained or incurred by the
Indemnified Party           in respect of any civil, criminal, administrative,
investigative or other           Proceeding (as defined below), whether or not brought by
the Corporation, to           which the Indemnified Party is made a party by reason of
being or having been an           officer or director of the Corporation, except for any
Expense attributable to           the Indemnified Party’s gross negligence or
willful misconduct in his           capacity as an officer, or failure to act honestly
and in good faith with a view           to the best interests of the Corporation in his
capacity as director, or in the           case of a criminal or administrative action or
proceeding that is enforced by a           monetary penalty, the Indemnified Party did
not have reasonable grounds for           believing that the Indemnified Party’s
conduct was lawful. 

	  	“Expenses” means
all costs, charges, damages, awards, settlements, liabilities, fines, penalties,
statutory obligations, professional fees, and other expenses of whatever nature or kind,
provided that any costs expenses and professional fees included as Expenses hereunder
shall be reasonable.  

	  	“Proceeding” will
include a claim, demand, suit, proceeding, inquiry, hearing, discovery or investigation,
of whatever nature or kind, whether anticipated, threatened, pending, commenced,
continuing or completed, and any appeal or appeals therefrom.  

	  	The
indemnities in this Agreement also apply to the Indemnified Party in respect of his or
her service at the Corporation’s request as (a) an officer or director of another
corporation, including without limitation, a subsidiary or affiliate of the Corporation
or (b) a similar role with another entity, including a partnership, trust, joint venture
or other unincorporated entity.  

	2. 	
Presumptions/Knowledge  

	  	2.1    
For the purposes of any determination hereunder, the Corporation will have the burden of
establishing the exceptions specified in Section 1.1 on the part of the Indemnified
Party. The termination of any civil, criminal, administrative, investigative or other
proceeding by any judgment, order, settlement or conviction will not, of itself, create a
presumption (a) that the Indemnified Party acted as an officer with gross negligence or
willful misconduct, or (b) that the Indemnified Party acted as a director not in good
faith or not in the best interests of the Corporation, or (c) that, in the case of a
criminal or administrative action or proceeding that is enforced by a monetary penalty,
the Indemnified Party did not have reasonable grounds for believing that the Indemnified
Party’s conduct was lawful.  

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	  	2.2    
The knowledge and/or actions, or failure to act, of any other director, officer, agent or
employee of the Corporation or any other entity will not be imputed to the Indemnified
Party for purposes of determining the right to indemnification under this Agreement.  

	  	2.3    
The Corporation will have the burden of establishing that any Expense it wishes to
challenge is not reasonable. 

	3. 	
Notice by Indemnified Party.    As soon as is practicable, upon the Indemnified Party
becoming aware of any Proceeding which may give rise to indemnification under this
Agreement (other than a Proceeding commenced by the Corporation), the Indemnified Party
will give written notice to the Corporation. Failure to give notice in a timely fashion
will not disentitle the Indemnified Party to indemnification.  

	4. 	Investigation
by Corporation.    The Corporation may conduct any           investigation it considers
appropriate of any Proceeding of which it receives           notice under Section 3, and
will pay all costs of that investigation. Upon           receipt of reasonable notice
from the Corporation, the Indemnified Party will,           acting reasonably, co-operate
fully with the investigation provided that the           Indemnified Party will not be
required to provide assistance that would           materially prejudice: (a) his or her
defence; (b) his or her ability to fulfill           his or her business obligations; or
(c) conduct his or her business and/or           personal affairs. The Indemnified Party
will, for the period of time that s/he           cooperates with the Corporation with
respect to an investigation, be compensated           by the Corporation at the rate of
$2,000 (U.S.) per day (or partial day) plus           reasonable out-of-pocket Expenses
actually incurred provided that the           Indemnified Party will not be entitled to
the per diem if he/she is employed as           an officer of the Corporation when
co-operation is sought. 

	5. 	Payment
for Expenses of a Witness.    Notwithstanding any other provision of           this
Agreement, to the extent that the Indemnified Party is a witness or           participant
other than as a named party in a Proceeding, the Corporation will           pay to the
Indemnified Party all out-of-pocket Expenses actually and reasonably           incurred
by the Indemnified Party or on the Indemnified Party’s behalf in
          connection therewith. The Indemnified Party will also be compensated by the
          Corporation at the rate of $2,000 (U.S.) per day (or partial day) provided that
          the Indemnified Party will not be entitled to the per diem if he/she is
employed           as an officer of the Corporation when co-operation is sought. 

	6. 	Expense
Advances.    The Corporation will, upon request by the Indemnified           Party, make
advances (“Expense Advances”) to the Indemnified           Party of all
amounts for which the Indemnified Party seeks indemnification under           this
Agreement before the final disposition of the relevant Proceeding. Expense
          Advances may include anticipated Expenses. In connection with such requests,
the           Indemnified Party will provide the Corporation with a written affirmation
of the           Indemnified Party’s good faith belief that the Indemnified Party is
legally           entitled to indemnification, along with sufficient particulars of the
Expenses           to be covered by the proposed Expense Advance to enable the
Corporation to make           an assessment of its reasonableness. The Indemnified Party’s
entitlement to           such Expense Advance will include those Expenses incurred in
connection with any           Proceeding by the Indemnified Party against the Corporation
seeking an           adjudication or award pursuant to this Agreement. The Corporation
will make           payment to the Indemnified Party within 20 days after the Corporation
has           received the foregoing information from the Indemnified Party. All Expenses
for           which indemnification is sought must be reasonable and Expense Advances
must           relate to Expenses anticipated within a reasonable time of the request. 

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	  	The
          Indemnified Party will repay to the Corporation all Expense Advances not
          actually required, and all Expense Advances if and to the extent that it is
          determined by a court of competent jurisdiction that the Indemnified Party is
          not entitled to indemnification under this Agreement. 

	7. 	Indemnification
Payments.    With the exception of Expense Advances which           are governed by
Section 6, the Corporation will pay to the Indemnified Party any           amounts to
which the Indemnified Party is entitled hereunder promptly upon the           Indemnified
Party providing the Corporation with reasonable details of the           claim. 

	8. 	
Right to Independent Legal Counsel.    If the Indemnified Party is           named as
a party or a witness to any Proceeding, or the Indemnified Party is           questioned
or any of his or her actions, omissions or activities are in any way
          investigated, reviewed or examined in connection with or in anticipation of any
          actual or potential Proceeding, the Indemnified Party will be entitled to
retain           independent legal counsel at the Corporation’s expense to act on
the           Indemnified Party’s behalf to provide an initial assessment to the
          Indemnified Party of the appropriate course of action for the Indemnified
Party.           The Indemnified Party will be entitled to continued representation by
          independent counsel at the Corporation’s expense beyond the initial
          assessment unless the parties agree that there is no conflict of interest
          between the Corporation and the Indemnified Party that necessitates independent
          representation. A conflict of interest will be deemed to exist if the
          Indemnified Party reasonably believes that his or her legal position or
          reputation could be adversely affected without independent representation.  

	9. 	
Settlement.    The parties will act reasonably in pursuing the settlement of
          any Proceeding. The Corporation may not negotiate or effect a settlement of
          claims against the Indemnified Party without the consent of the Indemnified
          Party, acting reasonably. The Indemnified Party may negotiate and effect a
          settlement without the consent of the Corporation but the Corporation will not
          be liable for any settlement negotiated without its prior written consent,
which           consent will not be unreasonably withheld.  

	10. 	
Directors’ & Officers’ Insurance.    The Corporation will
ensure that its liabilities           under this Agreement, and the potential liabilities
of Indemnified Parties that           are subject to indemnification by the Corporation
pursuant to this Agreement,           are at all times supported by a directors’ and
officers’ liability           insurance policy that has been approved by the Board.
The Corporation will, upon           request, provide to the Indemnified Party a copy of
each policy of insurance           providing the coverages contemplated by this Section
promptly after coverage is           obtained, and will promptly notify the Indemnified
Party if the insurer cancels,           makes material changes to coverage or refuses to
renew coverage (or any part of           the coverage).  

	11. 	
Arbitration.    All disputes, disagreements,           controversies or claims
arising out of or relating to this Agreement, including,           without limitation,
with respect to its formation, execution, validity,           application,
interpretation, performance, breach, termination or enforcement           will be
determined by arbitration before a single arbitrator under the Arbitration Act, 1991 (Ontario).
The arbitrator will determine, based on           the outcome of the arbitration, the
breakdown between the Corporation and the           Indemnified Party of the costs for
conducting the arbitration.  

	12. 	
Tax Adjustment.    Should any payment made pursuant to this Agreement,
including           the payment of insurance premiums or any payment made by an insurer
under an           insurance policy, be deemed to constitute a taxable benefit or
otherwise be or           become subject to any tax or levy, then the Corporation will
pay any amount           necessary to ensure that the amount received by or on behalf of
the Indemnified           Party, after the payment of or withholding for tax, fully
reimburses the           Indemnified Party for the actual cost, expense or liability
incurred by or on           behalf of the Indemnified Party.  

141

	13. 	
Cost of Living Adjustment.    The           $2,000 (U.S.) per diem payable pursuant
to Sections 4 and 5 will be adjusted to           reflect changes from January 1, 2006 in
the All-items Cost of Living Index for           Toronto prepared by Statistics Canada or
any successor index or government           agency.  

	14. 	
Governing Law.    This Agreement will be governed by the laws of           the
Province of Ontario and the federal laws of Canada applicable therein.  

	15. 	
Priority and Term.    This Agreement will supersede any previous agreement
          between the Corporation and the Indemnified Party dealing with this subject
          matter, and will be deemed to be effective as of the date on which the
          Indemnified Party first became an officer of the Corporation.  

	16. 	
Survival.    The obligations of the Corporation under this Agreement, other
          than Section 10, will continue until the later of (a) 15 years after the
          Indemnified Party ceases to be an officer or director of the Corporation or any
          other entity in which he or she serves in a similar capacity at the request of
          the Corporation and (b) one year after the final termination of all Proceedings
          with respect to which the Indemnified Party is entitled to claim
indemnification           hereunder. The obligations of the Corporation under Section 10
of this Agreement           will continue for 6 years after the Indemnified Party
ceases to be an           officer or director of the Corporation or any other entity in
which he or she           serves in a similar capacity at the request of the Corporation. 

	  	
IN
WITNESS WHEREOF the parties hereto have executed this Agreement.  

		COGNOS INCORPORATED
	

		by:    _________________________________________
		Name:
		Title:
	

	_________________________________________	        _________________________________________
	Witness	        Robert G. Ashe
	

	_________________________________________	
	Witness Name

142Cognos Exhibit 10.46 54735

Exhibit 10.46 

Robert G. Ashe 

President and Chief
Executive Officer
FY07 Compensation Plan 

Effective Date: March
1, 2006 to February 28, 2007 

Cash Compensation
Elements (All in US $) 

		 	Annual Base Salary	 	$   575,000	 
		 	Annual Target Incentive @ 100%	 	$   575,000 	 
		 	Annual Total Target Income @ 100%	 	$1,150,000	 

Equity-Based
Compensation Elements 

		 	Stock Option Grant	 	50,000 Options	 
		 	Target Restricted Stock Unit Grant @ 100%	 	50,000 RSUs	 

     

FY07 Executive
Incentive Grid (Share in Success Plan) 

     

The Share In Success Grid appearing
below (“SIS Grid”) is designed to reward achievement based on Operating
Margin and Revenue performance, and to discourage the achievement of one performance
metric at the expense of the other. If threshold performance is not achieved on either
performance metric, the FY07 corporate factor from the SIS Grid will be zero. Otherwise,
the number at the intersection of the results of the two (2) metrics will be multiplied by
the result of the Customer Loyalty Factor appearing in the table below to determine the
“SIS Factor” This will be multiplied by your Annual Target Incentive and
Target Restricted Stock Unit Grant to determine the actual amounts in each case. The
impact of the Customer Loyalty Factor ranges from 90% to 110%. The maximum SIS
Factor is 200%. 

EXECUTIVE INCENTIVE GRID (DESCRIBED
ABOVE) INTENTIONALLY DELETED 

     

FY07 Customer Loyalty
Factor Grid 

     

The Customer Loyalty Factor will be
the average of the quarterly scores from the customer loyalty survey which measures
customer loyalty through repurchase intentions and customer referenceability. 

CUSTOMER LOYALTY FACTOR
GRID (DESCRIBED ABOVE) INTENTIONALLY DELETED 

61 

     

General Terms  

     

This Compensation Plan contains the
details of your compensation for Fiscal Year 2007 (“FY07”). It forms part
of your Employment Agreement with Cognos. All compensation amounts are in United States
Dollars. 

	1)  	  	HRC
Approval.    The Human Resources & Compensation Committee of the Board of
Directors of Cognos Incorporated (“Committee”) approved this
Compensation Plan on April 5, 2006 and it is binding between you and Cognos when
signed
by both parties.  

	2)  	  	FY07
Incentive Payment.    Your FY07 Annual Incentive payment (“FY07
Incentive Payment”) will be determined as set out in the section
above entitled “FY07 Executive Incentive Grid (Share in Success)”.  

	3)  	  	FY07
RSU Grant.    Your FY07 Restricted Stock Unit Grant (“FY07 RSU Grant”)
will be determined as set out in the section above entitled “FY07
Executive Incentive Grid (Share in Success)”.  

	 	
The
restricted share units (“RSUs”), if any, will be granted following the
filing of a Current Report on Form 8-K, releasing Cognos’ audited FY07 financial
results. RSUs will be subject to the terms and conditions of the Cognos Incorporated
2002-2015 Restricted Share Plan (“RSU Plan”). 

	 	
The entire RSU Award will vest
on the 4th anniversary of the RSU Award Date (“Cliff Vesting Date”)
or earlier, in following circumstances:  

          	 	a. 	
               The entire RSU Award will vest in either of the
               following circumstances (x) on the date the CEO’s employment is terminated
               for any reason before the Cliff Vesting Date (unless such termination is for
               good cause based on the CEO’s moral turpitude or criminal misconduct)
               or (y) in the event of any Change of Control as defined in the CEO’s
               employment agreement. 

               

          	 	b. 	
               1⁄4 of the RSU Award will be eligible for immediate
               vesting on the RSU Award Date and on the three subsequent anniversaries of the
               RSU Award Date following the end of FY08, FY09 and FY10. On each of those dates
               vesting will occur if : 

               

          	 	(i) 	
               the Corporation meets or exceeds its dollar-based Operating Margin target for
               the most recently completed fiscal year (being the dollar figure obtained when
               multiplying the revenue and operating margin elements that result in a 100%
               payout under the SIS Grid without giving effect to any additional multipliers or
               factors), and 

               

	  	
COMPETITOR
CLAUSE INTENTIONALLY DELETED 

	 	
Notwithstanding
the terms of the RSU Plan or any other plan or agreement to the contrary, all entitlements
or rights pursuant to any RSUs granted as part of the FY07 RSU Grant shall immediately and
automatically become fully vested in the event that a “Change of Control”, as
defined in your current employment Agreement (“Agreement”), occurs and
all such vested rights shall be exercisable by you at the your sole discretion. 

	 	
If
your employment is terminated by Cognos without “just cause”, as defined in the
Agreement, (including constructive dismissal) or you terminate your employment for any
“good reason”, as defined in the Agreement, then the following provisions shall
apply: 

62 

	  	
(a)
notwithstanding any term of the RSU Plan, all of your entitlements or rights in
          any RSUs already granted as part of the FY07 RSU Grant shall continue to vest
          during the thirty (30) month period following the date of termination, and once
          vested shall be exercisable in accordance with the terms of the RSU Plan; and  

	  	
(b)
you shall also be entitled (if your employment terminates prior to the end of
          fiscal year 2007) to your FY07 RSU Grant, if any, pro-rated for the period up
to           the date of termination of employment (such grant to be determined and made
at           the times that Cognos generally determines and makes such grants to senior
          executives).  

	4)  	  	Stock
Option Grant.    Any stock options granted pursuant to the Stock Option Grant
will be granted at the same time as the annual stock option focal for all
employees. Options will be subject to the terms and conditions of the
Cognos Incorporated 2003-2008 Stock Option Plan. On each anniversary of
the option grant date, twenty-five percent (25%) of the options will vest.  

	5)  	  	Currency
Exchange Rate.    For payroll purposes, your Annual Base Salary and FY07
Incentive Payment, if any, will be converted to Canadian Dollars using the
month-end foreign exchange rate for February 2006. This rate is US $1 =
CDN $ 1.138. Accordingly, your Annual Base Salary for payroll purposes
will be CDN $654,350.  

	6)  	  	Repayment
and Surrender.    The FY07 Incentive Payment, if any, and the FY07 RSU Grant,
if any, are each based on performance measures and will be subject to
recalculation by Cognos and repayment by you in certain circumstances.  

	 	
If
the audited financial statements of Cognos Incorporated in respect of any fiscal year
after Fiscal Year 2006 are, or are required to be, subsequently re-stated in any material
respect, and for reasons that the Human Resources & Compensation Committee of the
Board of Directors of Cognos Incorporated (“Committee”) deems, in its
sole discretion, to be based on error, malfeasance or negligence, then any annual
incentive payment (“Incentive Payment”), including the FY07 Incentive
Payment, and any share-based compensation grant (“Share-Based Grant”),
including the FY07 RSU Grant, based on those audited financial statements will be
recalculated based on the restated financial statements. 

	 	
If
the original Incentive Payment is greater than the recalculated Incentive Payment, you
will immediately pay the difference between such amounts to the employing Cognos
subsidiary (subject to such other repayment terms as may be approved by the Committee). If
the original Incentive Payment is less than the recalculated Incentive Payment, Cognos
will forthwith pay you the difference between such amounts, less any deductions at source
required by applicable law. 

	 	
If
the number of options, RSUs or similar share-based compensation (“Units”)
granted in the original Share-Based Grant is greater than the number to be granted in the
recalculated Share-Based Grant, you will immediately surrender a number of options, RSUs
or Units, as the case may be, equal to the difference between the original Share-Based
Grant and the recalculated Share-Based Grant. If you do not have sufficient options, RSUs
or Units, as the case may be, to surrender to Cognos, you will transfer/deliver to Cognos
an equivalent number of Cognos shares or, with the prior written consent of Cognos, the
cash equivalent for such shares. If the number of options, RSUs or Units granted in the
original Share-Based Grant is less than the number granted in the recalculated Share-Based
Grant, Cognos will, subject to its then current option, RSU and Unit grant
policies/practices and the terms of the relevant share based plan, immediately grant an
additional number of options, RSUs or Units, as the case may be, equal to the difference
between the original Share-Based Grant and the recalculated Share-Based Grant. 

63 

	 	
Any
repayment made by you to Cognos will be net of any taxes originally withheld at source by
Cognos (“Tax Withholding Amount”). Any subsequent refund to you of any
taxes in respect of the original FY07 Incentive Payment will be immediately payable by you
to Cognos upon receipt, up to the Tax Withholding Amount. 

	7)  	  	Stock
Ownership.    Cognos stock ownership guidelines applicable to you are three
(3) times the sum of your Annual Base Salary and Annual Target Incentive
or $3,450,000. At the start of fiscal year 2007 this represented 95,833
shares. Entering fiscal year 2007 you have met the ownership guidelines.
It is expected that you will monitor and maintain this status going
forward.  

AGREED AND ACCEPTED AS OF
JULY 31, 2006:  

	/s/ Robert G. Ashe	 	July 26, 2006
	
	 	

	Robert G. Ashe	 	Date
	President and Chief Executive Officer	 	 

	/s/ John Jussup	 	July 31, 2006
	
	 	

	John Jussup	 	Date
	SVP, Chief Legal Officer and Secretary	 	 

64

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