The use of cognitive radios (CR) and cooperative communications techniques may assist in interference mitigation via sensing of the environment and dynamically altering communications parameters through the use of various mechanisms - one of which is the overlay technique. This report provides a performance analysis of an interference channel with a cognitive transceiver operating in an overlay configuration to evaluate the gains from using cognition. As shown in this report, a cognitive transceiver can simultaneously share spectrum while enhancing performance of non-cognitive nodes via knowledge of the communications channel as well as knowledge of neighboring users' modulation and coding schemes.