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Table of Contents

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| SECTION      1. | Defined      Terms                                                      | 1  |
|-----------------|-------------------------------------------------------------------------|----|
| 1.1             | Definitions.                                                            | 1  |
| 1.2             | Other      Definitional Provisions                                      | 5  |
| SECTION      2. | Grant      of Security Interest                                         | 5  |
| SECTION      3. | Representations      and Warranties                                     | 6  |
| 3.1             | Title;      No Other Liens                                              | 6  |
| 3.2             | Perfected      First Priority Liens                                     | 7  |
| 3.3             | Jurisdiction      of Organization; Chief Executive Office               | 7  |
| 3.4             | Farm      Products                                                      | 7  |
| 3.5             | Investment      Property                                                | 7  |
| 3.6             | Receivables.                                                            | 8  |
| 3.7             | Intellectual      Property.                                             | 8  |
| 3.8             | Commercial      Tort Claims.                                            | 8  |
| SECTION      4. | Covenants.                                                              | 9  |
| 4.1             | Delivery      of Instruments, Certificated Securities and Chattel Paper | 9  |
| 4.2             | Maintenance      of Insurance.                                          | 9  |
| 4.3             | Maintenance      of Perfected Security Interest; Further Documentation. | 9  |
| 4.4             | Changes      in Name, etc.                                              | 10 |
| 4.5             | Notices                                                                 | 10 |
| 4.6             | Investment      Property.                                               | 10 |
| 4.7             | Intellectual      Property.                                             | 12 |
| 4.8             | Commercial      Tort Claims                                             | 13 |
| SECTION      5. | Remedial      Provisions.                                               | 13 |
| 5.1             | Certain      Matters Relating to Receivables.                           | 13 |
| 5.2             | Communications      with Obligors; Grantors Remain Liable.              | 14 |
| 5.3             | Pledged      Stock.                                                     | 15 |
| 5.4             | Proceeds      to be Turned Over to Collateral Agent                     | 16 |
| 5.5             | Application      of Proceeds                                            | 16 |
| 5.6             | Code      and Other Remedies                                            | 16 |
| 5.7             | Registration      Rights                                                | 17 |
| 5.8             | Subordination                                                           | 18 |
| 5.9             | Deficiency                                                              | 18 |
| SECTION      6. | The      Collateral Agent.                                              | 18 |
| 6.1             | Collateral      Agent’s Appointment as Attorney-in-Fact, etc.     | 18 |
| 6.2             | Undertaking      of the Collateral Agent.                               | 20 |
| 6.6             | Duty      of Collateral Agent                                           | 24 |

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| 6.7             | Execution      of Financing Statements                     | 24 |
|-----------------|------------------------------------------------------------|----|
| 6.8             | Authority      of Collateral Agent                         | 24 |
| 6.9             | Intercreditor      Arrangements                            | 24 |
| SECTION      7. | Miscellaneous.                                             | 25 |
| 7.1             | Amendments.                                                | 25 |
| 7.2             | Notices                                                    | 25 |
| 7.3             | No      Waiver by Course of Conduct; Cumulative Remedies   | 25 |
| 7.4             | Enforcement      Expenses; Indemnification.                | 26 |
| 7.5             | Security      Interest Absolute                            | 26 |
| 7.6             | Successors      and Assigns                                | 26 |
| 7.7             | Set-Off;      Limitation on Individual Actions.            | 26 |
| 7.8             | Counterparts                                               | 27 |
| 7.9             | Severability                                               | 28 |
| 7.10            | Section      Headings                                      | 28 |
| 7.11            | Integration                                                | 28 |
| 7.12            | GOVERNING      LAW                                         | 28 |
| 7.13            | Submission      To Jurisdiction; Waivers                   | 28 |
| 7.14            | Acknowledgements                                           | 29 |
| 7.15            | Additional      Grantors.                                  | 30 |
| 7.16            | Continuing      Security Interest; Releases of Collateral. | 30 |
| 7.17            | WAIVER      OF JURY TRIAL                                  | 30 |

|   | (ii) |   |
|--------|------|--------|

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|--------|--------|--------|

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|   | COMMUNICATION      INTELLIGENCE CORPORATION, |
|--------|----------------------------------------------|

|   | as      Borrower and as a Grantor |
|--------|-----------------------------------|

|   | By:      /s/ Francis V.      Dane |
|--------|-----------------------------------|

|   | Name:      Francis V. Dane |
|--------|----------------------------|

|   | Title:       Chief Financial Officer |
|--------|-------------------------------------------|

|   | CIC      ACQUISITION CORP., |
|--------|-----------------------------|

|   | as      Grantor |
|--------|-----------------|

|                                  By: /s/ Francis V. Dane  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Name:      Francis V. Dane |
|--------|----------------------------|

|   | Title: |
|--------|--------|

|   | SG      PHOENIX LLC, |
|--------|----------------------|

|   |    as      Collateral Agent |
|--------|--------------------------------------------|

|   | By:       /s/ Andrea      Goren |
|--------|--------------------------------------|

|   | Name:      Andrea Goren |
|--------|-------------------------|

|   | Title:Member |
|--------|--------------|

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|   | Acknowledged      and Agreed to: |
|--------|----------------------------------|

|   | PHOENIX      VENTURE FUND LLC, |
|--------|--------------------------------|

|   |    as      a Secured Party |
|--------|-------------------------------------------|

|   |        By:      SG Phoenix Ventures LLC, |
|--------|-----------------------------------------------------------------------------|

|  By: /s/ Andrea Goren                     |
|------------------------------------------------|
|  Name:   Andrea      Goren |
|  Title:       Member       |