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                                                                    EXHIBIT 10.2

                 SECOND AMENDED AND RESTATED SECURITY AGREEMENT

      This SECOND AMENDED AND RESTATED SECURITY AGREEMENT ("AGREEMENT") is
entered into as of the 19th day of June, 2001 by and among COMMUNICATION
INTELLIGENCE CORPORATION, a Delaware corporation (the "BORROWER") CICI Limited,
a wholly-owned subsidiary of Borrower ("CICI") and CIC Acquisition Corp., a
wholly-owned subsidiary of Borrower ("CIC ACQUISITION" and together with CICI,
and Borrower the "DEBTORS" and individually a "DEBTOR") in favor of THE PHILIP
S. SASSOWER 1996 CHARITABLE REMAINDER ANNUITY TRUST (the "SECURED PARTY").

      This Agreement amends and restates in its entirety that certain security
agreement dated October 20, 1999 between the Debtor and the Secured Party (the
"AMENDED AND RESTATED SECURITY AGREEMENT") and such Amended and Restated
Security Agreement shall no longer be in effect.

      All terms used herein but not defined herein shall have the meaning
ascribed to them in the Uniform Commercial Code as in effect in the State of New
York from time to time (the "UCC").

      Section 1.  CREATION OF SECURITY INTEREST

            1.1   GRANT OF SECURITY INTEREST. (a) Each Debtor, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, hereby grants to Secured Party a continuing, first priority
security interest in and lien on (the "SECURITY INTEREST") the Collateral (as
defined in Section 2 hereof) of such Debtor to secure performance and payment of
(i) that certain convertible note of even date herewith made by the Secured
Party in favor of Borrower in the aggregate principal amount of $3,000,000 (the
"NOTE"); (ii) all renewals and extensions of the Note; (iii) all other
obligations any Debtors under this Agreement and the Note; and (iv) all other
obligations and indebtedness of any Debtor to Secured Party of whatever kind and
whenever or however created or incurred, whether absolute or contingent, matured
or unmatured, direct or indirect (all of the foregoing described in this Section
1 being the "Secured Indebtedness").

                  (b) The Security Interest granted herein shall continue in
full force and effect until all of the Secured Indebtedness has been discharged.

            1.2   PRIORITY. The Secured Indebtedness shall be the senior
obligation of each Debtor, secured by a first priority Security Interest in the
Collateral.

      Section 2.  COLLATERAL

      As used herein, the term "COLLATERAL" shall mean all of a Debtor's right,
title and interest in and to all tangible and intangible property, now owned or
hereafter acquired by such Debtor, wherever located, whether real, personal or
mixed. The Collateral includes, without limitation, all goods (including all
Equipment, Inventory, consumer goods and farm products), Fixtures, Accounts
Receivable, other receivables, general intangibles, patents and patent
applications, including those listed on EXHIBIT A annexed hereto, Trademarks,
Licenses, Trade Secrets (each as hereinafter defined), service marks, all other
intellectual property, contract rights, rights to

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receive payments of every kind, all goodwill (including all goodwill associated
with the Trademarks, Licenses, Trade Secrets, service marks and all other
intellectual property referred to above), documents, instruments and chattel
paper, each as now owned or hereafter acquired by such Debtor, together with all
proceeds of the foregoing, including without limitation, all proceeds of the
foregoing consisting of goods and intangible personal property. As used herein,
the following terms shall have the meanings indicated:

                  (a) "TRADEMARKS" shall mean all of the following now or
hereafter owned by a Debtor: (i) all trademarks, service marks, trade names,
corporate names, company names, indicia, business source identifiers, business
names, fictitious business names, trade styles, trade dress, logos, other source
or business identifiers, prints and labels on which any of the foregoing have
appeared or appear, designs and general intangibles of like nature, now existing
or hereafter adopted or acquired, all registrations and recordings thereof, and
all applications in connection therewith, including, without limitation,
registrations, recordings and applications in the United States Patent and
Trademark Office (the "USPTO") listed on EXHIBIT B annexed hereto, any State of
the United States or any other country or any political subdivision thereof,
(ii) all goodwill associated therewith arising in or relating to the ordinary
course of business of such Debtor, (iii) all extensions or renewals thereof, and
(iv) the right to sue for past, present and future infringement of the
foregoing.

                  (b) "LICENSE" shall mean any written agreement, now executed
or to be executed hereafter by a Debtor, granting to any third party any right
to use any Patent or Trademark now or hereafter owned by a Debtor, or granting
to a Debtor any right to use any Patent or Trademark now or hereafter owned by
any third party.

                  (c) "TRADE SECRETS" shall mean all trade secrets and other
confidential or proprietary, technical or business information, now or
hereinafter owned by a Debtor, as any of the foregoing may be amended or
supplemented from time to time, and any improvements thereon or changes thereto.

      Section 3.  PAYMENT OF OBLIGATIONS OF DEBTORS

            3.1   DIRECT OBLIGATIONS. Borrower shall pay to Secured Party any
sum or sums due or which may become due pursuant to the Note, or any extensions
or renewals thereof, or under this Agreement or the Note.

            3.2   EXPENSES. Each Debtor shall be liable to promptly pay to
Secured Party on demand all expenses and expenditures, including reasonable
attorneys' fees and other legal expenses incurred or paid by Secured Party in
exercising or protecting its interests, rights and remedies under the Note or
this Agreement plus interest thereon at the maximum non-usurious rate permitted
by applicable law. Such expenses and expenditures shall be part of the Secured
Indebtedness.

            3.3   ACCELERATION. Debtor shall pay immediately, without notice,
the entire unpaid Secured Indebtedness of Debtor to Secured Party, whether
created or incurred pursuant to this Agreement, the Note or otherwise, upon the
occurrence of an Event of Default as described

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in Section 5 of this Agreement and acceleration of said Secured Indebtedness as
provided for in the Note.

      Section 4.  DEBTORS' REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS

      Each Debtor represents, warrants, covenants and agrees that:

            4.1   VALID ACCOUNTS. Each Account Receivable will represent the
valid and legally enforceable indebtedness of a bona fide customer ("CUSTOMER")
arising from the sale or lease of goods or rendition by Debtor of services and
will be subject to no set-offs, counterclaims or defenses; such goods or
services will have been delivered to or performed for, and accepted by, the
Customer, and the amount shown as to each account on Debtor's books will be the
true and undisputed amount owing and unpaid thereon, payable in full at the time
referred to in the invoice, or if no time is specified within at least ninety
(90) days from the date of the particular invoice, and none of the Debtors has
any knowledge of any fact or circumstance that would impair the validity or
enforceability of any Accounts Receivable. As used herein, the term "ACCOUNTS
RECEIVABLE" shall mean all of a Debtor's accounts, contract rights, chattel
paper, instruments, general intangibles and rights to payment of every kind, now
or at any time hereafter arising.

            4.2   TITLE; AUTHORITY. (a) Except for the Security Interest granted
hereby and except as set forth on EXHIBIT C attached hereto, each Debtor is, and
as to Collateral acquired after the date hereof shall be, the absolute owner and
holder of, and has good and, with respect to real property, marketable, title
to, the Collateral, free and clear of all liens, security interests, charges,
mortgages or encumbrances of any kind or nature whatsoever (collectively,
"LIENS"). All instruments, documents and chattel paper pertaining to the
Accounts Receivable are or, with respect to Accounts Receivable arising after
the date hereof, will be, valid and genuine and free from all Liens, except for
the security interests granted hereby or as otherwise disclosed on EXHIBIT C.

                  (b) Each Debtor has full power and authority to grant to
Secured Party the Security Interest granted herein, and the execution, delivery
and performance of this Agreement is not in contravention of any charter or
by-law provision of such Debtor, or of any indenture, contract or other
agreement to which such Debtor is a party or by which its properties or assets
are bound.

            4.3   PERFORMANCE OF OBLIGATIONS. Each Debtor will duly perform and
will cause to be performed all obligations with respect to the goods, the sale
or lease of which gave rise to each of the Accounts Receivable.

            4.4   INFORMATION. To the knowledge of Debtors, all information
supplied and statements made by each Debtor or any guarantor in any financial,
credit or accounting statement or application for credit prior to,
contemporaneously with or subsequent to the execution of this Agreement are and
shall be true, correct, complete, valid and genuine.

            4.5   PLACE OF BUSINESS; RECORDS. (a) The chief place of business of
each Debtor is the address shown on EXHIBIT D attached to this Agreement. Each
Debtor will

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immediately notify Secured Party in writing of any change in such Debtor's chief
place of business.

                  (b) Each Debtor will (i) keep such books and records
pertaining to the Collateral at such chief place of business, and at such office
or offices of each Debtor as shall be approved in writing by Secured Party; (ii)
mark its books and records in such fashion as to indicate the Security Interest
granted hereby; (iii) permit officers, employees, or other representatives of
Secured Party at all reasonable times to inspect the Collateral and inspect and
make abstracts from the books and records of such Debtor pertaining to the
Collateral; and (iv) furnish to Secured Party such reasonable information and
reports regarding the Collateral as Secured Party may from time to time require.

                  (c) The Secured Party's right to take possession of any
Debtor's books and records after the occurrence of and during an Event of
Default shall be enforceable at law, by action of replevin or by any other
appropriate remedy at law or in equity and, to the extent permitted by law, each
Debtor consents to the entry of judicial orders or injunctions enforcing such
rights without any notice to such Debtor or opportunity to be heard.

            4.6   TAXES. Each Debtor will promptly pay any and all taxes,
assessments and governmental charges upon the Collateral prior to the date
penalties are attached thereto, except to the extent otherwise permitted by
Secured Party.

            4.7   NOTICE TO CUSTOMERS. Upon an Event of Default and upon Secured
Party's request, each Debtor will give such notice in writing as Secured Party
may reasonably require at any time to any or all Customers indebted on all or
any of the Accounts Receivable and, if Secured Party shall so request, deliver
to Secured Party copies of any and all such notices and, in addition Secured
Party, or its agents or representatives may (1) transmit to any or all Customers
at any time or times such notice of Secured Party's interest in any such
Accounts Receivable as Secured Party may determine (but Secured Party shall not
be required to give any such notice and any failure to give such notice by
Secured Party shall in no way affect Secured Party's rights and interest
hereunder or under any Accounts Receivable); (2) request from Customers at any
time or times information concerning the amount owing under any or all Accounts
Receivable; (3) request from Customers that Accounts Receivable be paid directly
to Secured Party or to a post office box address over which Secured Party has
control; or (4) enforce payment of and collect, by legal proceedings or
otherwise, all Accounts Receivable.

            4.8   INFORMATION TO SECURED PARTY REGARDING COLLATERAL. Each Debtor
will transmit to Secured Party all information that it may have or receive with
respect to the Collateral or with respect to Customers indebted on the Accounts
Receivable which might in any way adversely affect the value of the Collateral
or Secured Party's rights or remedies with respect thereto, including, but not
limited to (i) rejection of goods or services by a Customer, (ii) assertion of
claims, counterclaims or set-offs by a Customer, and (iii) information of
financial difficulties of a Customer of which such Debtor has or obtains
knowledge.

            4.9   NO ADDITIONAL SECURITY INTERESTS OR LIENS. No Debtor will
pledge, mortgage or otherwise encumber, or create or suffer a security interest
or Lien to exist in any of the Collateral to or in favor of any person other
than Secured Party, except as otherwise

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authorized pursuant to this Agreement or the Note. Each Debtor will defend the
Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein senior or pari passu to that of Secured Party.

            4.10  ADDITIONAL DOCUMENTATION. Each Debtor will execute, alone or
with Secured Party, any financing statement or other document or procure any
document reasonably required, and pay all costs necessary or desirable to
protect the Security Interest, rights and remedies created by, provided in or
emanating from this Agreement. Each Debtor shall use its best efforts to furnish
to Secured Party, if requested, a landlord's waiver of all liens with respect to
any Collateral covered by this Agreement that is or that may be located upon
leased premises. Such landlord's waiver is to be in such form and upon such
terms as is acceptable to Secured Party.

            4.11  PROTECTIVE ACTION. Each Debtor will, at its own expense, do,
make, procure, execute and deliver all acts, things, writing and assurances as
Secured Party may at any time reasonably request to protect, assure or enforce
its interests, rights and remedies created by, provided in or emanating from
this Agreement.

            4.12  NO LEASES, LICENSES OR ENCUMBRANCES. None of the Debtors will
lend, rent, lease, license or otherwise dispose of its respective Collateral or
any interest therein except as authorized in this Agreement or in writing by
Secured Party or in the ordinary course of Debtor's business consistent with
past practices, and each Debtor shall keep its respective Collateral, including
the proceeds from any disposition thereof, free from unpaid charges, including
taxes, and from all Liens.

            4.13  COLLATERAL LOCATIONS. The Collateral shall remain in the
respective Debtor's possession or control at its address shown in this Agreement
or at such other locations as Secured Party may approve in writing, and shall
not be removed except for temporary removal in the ordinary course of Debtor's
business from those locations.

            4.14  INSURANCE. Each Debtor will have and maintain or cause to be
maintained insurance at all times with respect to its respective Collateral
against risks of fire, theft and such other risks as Secured Party may
reasonably require. Such insurance policies shall contain such terms and be
written by companies reasonably satisfactory to Secured Party. Such insurance
policies shall also contain, if requested by Secured Party, a standard
mortgagee's endorsement providing for payment of any loss to Secured Party. All
policies of insurance shall provide for a minimum of thirty (30) days written
cancellation notice to Secured Party. Each Debtor shall furnish Secured Party
with certificates or other evidence satisfactory to Secured Party of compliance
with the foregoing insurance provisions. Each Debtor hereby irrevocably appoints
Secured Party as attorney for such Debtor in obtaining, adjusting, settling and
canceling such insurance and endorsing any drafts drawn by insurers of the
Collateral, which power is coupled with an interest; PROVIDED, HOWEVER, that
Secured Party shall not be required to obtain, adjust, settle or cancel such
insurance or endorse such drafts and any failure to do so by Secured Party shall
in no way affect Secured Party's rights and interest hereunder or in any of the
Collateral. In the event of loss and the payment of insurance proceeds, all
monies shall be payable to Secured Party for the accounts of Secured Party and
the Debtors, as their interests may appear. At the option of Secured Party, all
monies so received, from less than an actual or constructive total loss

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shall be applied (i) to the Note secured thereby, (ii) to repair of the damage
in respect of which the insurance loss was paid, or (iii) in reimbursements for
monies theretofore so applied by such Debtor with the consent of the Secured
Party. In the event of actual or constructive total loss of the Collateral, the
insurance proceeds for such loss shall, unless otherwise agreed by Secured
Party, be applied as follows: (i) to the payment of the costs of collecting such
insurance, if any, (ii) to the payment of all indebtedness, principal, interest
and other sums owed by such Debtor to Secured Party secured hereby, and (iii)
the balance, if any to such Debtor.

            4.15  SEGREGATION OF RETURNED GOODS. Returned or repossessed goods
arising from or relating to any accounts included within the Collateral shall,
if requested by Secured Party, be held separate and apart from any other
property of such Debtor.

            4.16  ACCOUNTS AS PROCEEDS. All accounts that are proceeds of the
inventory included within the Collateral shall be subject to the security
interest granted hereby and all of the other terms and provisions hereof.

            4.17  CERTIFICATES OF TITLE. If certificates of title or similar
documents are issued or outstanding or become issued and outstanding with
respect to any of the Collateral, each Debtor will promptly advise Secured Party
thereof and will immediately cause the interest of Secured Party to be properly
noted thereon and said certificates are to be delivered to Secured Party.

            4.18  BUSINESS USE. The Collateral is and will be used for the sole
purpose of conducting the respective Debtor's business in the ordinary course,
unless otherwise agreed to in writing by Secured Party.

            4.19  NO MISUSE; DUTY TO MAINTAIN. The Collateral will not be
misused or abused, wasted or allowed to deteriorate, except for the ordinary
wear and tear of its intended primary use, and will not be used in violation of
any statute, regulation or ordinance. Each Debtor agrees to maintain and use the
Collateral in a careful and proper manner and in conformity with all applicable
statutes, laws, ordinances and regulations and with all permits and licenses.
None of the Debtors will use the Collateral in any manner which exposes the
Collateral to unusual risk or to penalty, forfeiture or capture. Each Debtor
shall maintain, service and repair the Collateral so as to keep the Collateral
in good operating condition.

            4.20  COLLATERAL AFFIXED TO REAL ESTATE. If the Collateral is or is
to be wholly or partly affixed to real estate or other goods, a description of
the real estate or other goods shall be promptly delivered to Secured Party and
become a part of this Agreement, and shall specify the location and record owner
of such real estate or other goods. If requested by Secured Party, each Debtor
shall use its best efforts to furnish disclaimers or waivers of all parties
having an interest in the real estate or other goods to which the Collateral is
or is to be attached to any interest in the Collateral.

            4.21  NO FINANCING STATEMENTS. Except as otherwise set forth on
EXHIBIT E attached hereto, there is no financing statement or similar filing now
on file in any public office covering any part of the Collateral which has not
been discharged nor is there any filing with the USPTO for the purpose of
perfecting, confirming, continuing, enforcing or protecting any

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security interest granted by any Debtor in the Collateral, and none of the
Debtors will execute and there will not be on file in any public office any
financing statement or similar filing, except the financing statements filed or
to be filed in favor of Secured Party and the filing of this Agreement with the
USPTO, or as otherwise specifically permitted by this Agreement.

            4.22  PATENTS AND TRADEMARKS. (a) Each Debtor (either itself or
through licensees) will, for each Trademark material to the conduct of such
Debtor's business, (i) to the extent consistent with past practice, continue to
use such Trademark on each and every trademark class of goods applicable to its
current line of business in order to maintain such Trademark in full force free
from any claim of abandonment for nonuse, (ii) maintain as in the past the
quality of products and services offered under such Trademark, (iii) employ such
Trademark with the notice of Federal registration, and (iv) not (and not permit
any licensee or sublicensee thereof to) do any act or knowingly omit to do any
act whereby such Trademark may become abandoned or invalidated.

                  (b) In no event shall any Debtor, either itself or through any
agent, employee, licensee or designee, file an application for any patent or
Trademark with the USPTO, or any similar office or agency in any other country
or any political subdivision thereof or enter into a License, unless it promptly
informs Secured Party, and, upon request of Secured Party, executes and delivers
any and all agreements, instruments, documents and papers as Secured Party may
reasonably request to evidence Secured Party's security interest in such patent,
Trademark or License, and the goodwill and general intangibles of such Debtor
relating thereto or represented thereby.

                  (c) Each Debtor will take all necessary steps that are
consistent with the practice in any proceeding before the USPTO, or any similar
office or agency in any other country or any political subdivision thereof, to
maintain and pursue each material application relating to any patent or
Trademark (and to obtain the relevant grant or registration) and to maintain
each registration of any patent or Trademark which is material to the conduct of
such Debtor's business, including, without limitation, filing of application for
renewal, affidavits of use, affidavits of incontestability and maintenance fees,
and, where appropriate, to initiate opposition, interference and cancellation
proceedings against third parties.

            4.23  In the event that any Collateral consisting of a patent or
Trademark material to the conduct of any Debtor's business is believed
infringed, misappropriated or diluted by a third party, such Debtor shall notify
Secured Party in writing within fifteen (15) days after it learns thereof and
shall, if consistent with good business practice, promptly sue for infringement,
misappropriation or dilution and to recover any and all damages for such
infringement, misappropriation or dilution, and take such other actions as is
appropriate under the circumstances to protect such Collateral.

            4.24  Each Debtor shall use its best efforts to cause all UCC
financing statements and liens with respect to the Collateral existing as of the
date hereof, other than those relating to the Secured Party, to be terminated.

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      Section 5.  EVENTS OF DEFAULT

      Each Debtor shall be in default under this Agreement upon the happening of
an Event of Default under the terms and conditions of the Note (herein called an
"EVENT OF DEFAULT").

      Section 6.  SECURED PARTY'S RIGHTS AND REMEDIES

            6.1   SECURED PARTY'S RIGHTS.

                  (a)   This Agreement, Secured Party's rights hereunder or the
Secured Indebtedness may be assigned by Secured Party, at any time and from time
to time, and in any such case the assignee shall be entitled to all of the
rights, privileges and remedies granted in this Agreement to Secured Party;
PROVIDED, HOWEVER, that prior to the time an Event of Default has occurred,
Secured Party shall not make any such assignment to any party in the same or
similar business to that of any Debtor.

                  (b)   Each Debtor hereby appoints the Secured Party as its
true and lawful attorney, with full power of substitution, for the purpose of
carrying out the provisions of this Agreement and taking any action and
executing any instrument which Secured Party may deem necessary or advisable to
accomplish the purposes hereof. The power of attorney granted herein shall be
deemed to be coupled with an interest, shall be irrevocable, shall survive the
death, disability, dissolution, liquidation or other termination of such Debtor,
shall be binding upon all heirs, legal representatives, successors and assigns
of such Debtor, and shall inure to the benefit of Secured Party and its
successors and assigns. If an Event of Default shall occur, without limiting the
generality of the foregoing, Secured Party shall have the right to receive,
collect and endorse all checks made payable to any Debtor or its order
representing any proceeds in respect of the Collateral or any part thereof and
to give full discharge therefor. If an Event of Default shall occur, Secured
Party may, but is not obligated to, exercise at any time and from time to time
all or any of the rights of any Debtor including, but not limited to, the
following powers, with respect to all or any of the Collateral:

                        (i) to demand, sue for, collect, receive and give
acquittance for any and all monies due or to become due upon or by virtue
thereof;

                        (ii) to receive, take, endorse, assign and deliver any
and all checks, notes, drafts, documents and other negotiable and non-negotiable
instruments and chattel paper taken or received by Secured Party in connection
therewith;

                        (iii) to settle, compromise, compound, prosecute or
defend any action or proceeding with respect thereto;

                        (iv) to sell, transfer, assign or otherwise deal in or
with the same or the proceeds or avails thereof or the relative goods, as fully
and effectually as if Secured Party were the absolute owner thereof; and

                        (v) to extend the time of payment of any or all thereof
and to make any allowance and other adjustments with reference thereto,
including without limitation,

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arrangement for payment in installments, other modifications of the payment
terms thereof, or release thereof;

PROVIDED, HOWEVER, that the exercise by Secured Party of or failure to so
exercise any such authority shall in no manner affect or discharge any Debtor's
liability to Secured Party hereunder or under the Note or under any other
instrument evidencing or securing any of the Secured Indebtedness; PROVIDED,
FURTHER, Secured Party shall be under no obligation, responsibility or duty to
exercise any of the powers hereby conferred upon it and it shall be without
liability for any act or failure to act in connection with any of the
Collateral. Secured Party shall not be required to take any steps necessary to
preserve the rights of the Collateral, except as required by law. If an Event of
Default shall occur, Secured Party shall at all times have the right to apply
the proceeds of any of the accounts or other property in which Secured Party has
been granted a Security Interest herein towards payment of the Note and other
Secured Indebtedness immediately upon receipt or collection of such proceeds.

                  (c)   Secured Party or any of its employees, agents or
representatives may enter upon any Debtor's premises at any reasonable time to
inspect such Debtor's records pertaining to the Collateral and Debtor shall
assist such parties in making such inspections.

                  (d)   Secured Party may execute, sign, endorse, transfer or
deliver in the name of any Debtor notes, checks, drafts or other instruments for
the payment of money and receipts, certificates of origin, applications for
certificates of title or any other documents necessary to evidence, perfect or
realize upon the security interest and obligations created by this Agreement.

            6.2   RIGHTS IN EVENT OF DEFAULT. (a) Upon the occurrence and during
the continuance of an Event of Default, in addition to the rights granted
pursuant to Section 6.1, the Secured Party may, without notice to any Debtor
(except as otherwise specified herein), do any or all of the following, all of
which rights and remedies are cumulative, and the exercise of any one or more of
the remedies provided for herein shall not be construed as a waiver of any of
the other remedies of Secured Party:

                        (i) Secured Party may declare the Secured Indebtedness
immediately due and payable and may exercise any of the rights and remedies
available to a secured party under the UCC or otherwise available to Secured
Party by agreement, at law or in equity, and under all other applicable laws of
each state having jurisdiction over the Collateral or any part thereof,
including without limitation thereto, the right to sell, lease or otherwise
dispose of any or all of the Collateral and the right to take possession of the
Collateral, and for that purpose Secured Party may, with or without notice or
process of any kind, enter upon any premises on which the Collateral or any part
thereof may be situated and remove the Collateral or books and records
evidencing same, or may require any Debtor to assemble the Collateral and make
it available to Secured Party at a place to be designated by Secured Party which
is reasonably convenient to both parties. Unless the Collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market, Secured Party will send each Debtor reasonable notice of the
time and place of any public sale thereof or of the time after which any private
sale or other disposition thereof is to be made. The requirement of sending
reasonable notice shall be met if such notice is mailed, postage prepaid, to
such Debtor at the

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address designated in this Agreement at least ten (10) days before the time of
the sale or disposition. Expenses of retaking, holding, preparing for sale,
selling or the like shall include Secured Party's reasonable attorneys' fees and
legal expenses, plus interest thereon at the maximum non-usurious rate permitted
by applicable law with respect to such Debtor and shall constitute part of the
Secured Indebtedness. Secured Party may apply the proceeds of any disposition of
Collateral available for satisfaction of the Secured Indebtedness in any order
of preference which Secured Party, in its sole discretion, chooses. Each Debtor
shall remain liable for any deficiency.

                        (ii) Secured Party may retain all books and records of
any Debtor.

                        (iii) Secured Party may complete any uncompleted
Inventory in the process of construction or completion.

                        (iv) Secured Party may notify any of Debtor's lessees,
consignees, renters and/or debtors to make all payments directly to the Secured
Party and to surrender, at the termination of any such lease, rental agreement
or consignment, the item or items leased, rented or consigned, directly to the
Secured Party.

                        (v) Secured Party may cure any default in any reasonable
manner and add the cost of such cure to the Secured Indebtedness.

                  (b)   Upon the occurrence and during the continuance of an
Event of Default, Secured Party may remedy any default and may waive any default
without waiving the default remedied or without waiving any other prior or
subsequent default.

                  (c)   Upon the occurrence and during the continuance of an
Event of Default, Secured Party may enforce its rights under this Agreement
without resort to prior judicial process or judicial hearing, and each Debtor
expressly waives, renounces and knowingly relinquishes any legal right which
might otherwise require Secured Party to enforce its rights by judicial process.
In so providing for a non-judicial remedy, each Debtor recognizes and concedes
that such a remedy is consistent with the usage of the trade, is responsive to
commercial necessity and is the result of bargaining at arms length. Nothing in
this Agreement is intended to prevent any Debtor or the Secured Party from
resorting to judicial process at such party's option.

                  (d)   Each Debtor agrees that in performing any act required
of such Debtor under this Agreement that time shall be of the essence and that
Secured Party's acceptance of a partial or delinquent payment or payments, or
the failure of Secured Party to exercise any right or remedy shall not be a
waiver of any obligation of any Debtor or any right of Secured Party or
constitute a waiver of any other similar default subsequently occurring.

                  (e)   Upon the occurrence and during the continuance of an
Event of Default, Secured Party may at any time demand, sue for, collect or make
any compromise or settlement with reference to the Collateral as Secured Party,
in its sole discretion, chooses. Secured Party may delay exercising or omit to
exercise any right or remedy under this

                                      -10-
<PAGE>

Agreement without waiving that or any other past, present or future right or
remedy, except in writing signed by Secured Party.

      Section 7.  ADDITIONAL AGREEMENTS

            7.1 SUCCESSORS AND ASSIGNS. Subject to the provisions of Section
6.1(a), this Agreement shall be binding upon and shall inure to the benefit of
the parties, their successors, endorsers, representatives, receivers, trustees
and assigns; PROVIDED, HOWEVER, that nothing contained herein shall be construed
to permit any Debtor to assign this Agreement or any of its rights or
obligations hereunder, without obtaining the prior written approval of the
Secured Party.

            7.2 WAIVER AND INDEMNITY. Each Debtor hereby waives and releases all
relief from any and all appraisement, stay or exemption laws of any state now in
force or hereinafter enacted. Each Debtor hereby waives presentment, notice of
dishonor and protest of all instruments included in or evidencing the Collateral
and any and all notices and demand whatsoever, whether or not relating to such
instruments.

            7.3 SECTION HEADINGS. The section headings appearing in this
instrument have been inserted for convenience only and shall be given no
substantive meaning or significance whatever in construing the terms and
provisions of this instrument.

            7.4 APPLICABLE LAW. The law governing this secured transaction shall
be that of the State of New York in force at the date of this instrument.

            7.5 NOTICES. All notices, requests, demands and other communications
required or permitted hereunder shall be in writing and may be personally served
or sent by telecopier, mail or the express mail service of the United States
Postal Service, Federal Express or other equivalent overnight or expedited
delivery service and (i) if given by personal service, or telecopier (confirmed
by telephone), it shall be deemed to have been given upon receipt, (ii) if sent
by mail, it shall be deemed to have been given upon receipt and (iii) if sent by
Federal Express, the Express Mail Service of the United States Postal Service or
other equivalent overnight or expedited delivery service, it shall be deemed
given twenty-four (24) hours after delivery to such overnight or expedited
delivery service, delivery charges prepaid and properly addressed to Debtor or
Secured Party as the case may be. For purposes hereof, the addresses of Debtors
and Secured Party shall be as follows:

      DEBTORS:

            Communication Intelligence Corporation
            275 Shoreline Drive
            Redwood Shores, CA  94065-1413
            Attention:  President

            CICI Limited
            275 Shoreline Drive
            Redwood Shores, CA  94065-1413
            Attention:  President

                                      -11-
<PAGE>

            CIC Acquisition Corp.
            275 Shoreline Drive
            Redwood Shores, CA  94065-1413
            Attention:  President

            with a copy to:

            Communication Intelligence Corporation
            275 Shoreline Drive
            Redwood Shores, CA  94065-1413
            Attention:  Chief Financial Officer

      SECURED PARTY:

            The Philip S. Sassower 1996 Charitable Remainder
            Annuity Trust
            135 East 57th Street
            New York, New York  10022
            Attn:  Mr. Philip Sassower, Trustee
            Tel: (212) 759-1909
            Fax: (212) 319-4930

            with a copy to:

            Baer Marks & Upham LLP
            805 Third Avenue
            New York, NY  10022-7513
            Attn:  Jonathan J. Russo, Esq.
            Tel:  (212) 702-5700
            Fax:  (212) 702-5941

Any party may, by proper written notice hereunder to the other party, change the
address to which notices shall thereafter be sent to it.

            7.6 SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable, such provision shall be fully severable, and
the remaining provisions of this Agreement shall be in full force and effect.

            7.7 SAVINGS CLAUSE. Notwithstanding any provision to the contrary
herein, or in any of the documents evidencing the Secured Indebtedness, no such
provision shall require the payment or permit the collection of interest in
excess of the maximum permitted by applicable usury laws. If any such excessive
interest is so provided for, then in such event (i) the provisions of this
paragraph shall govern and control, (ii) none of the Debtor's nor their
representatives, successors or assigns or any other party liable for the payment
thereof, shall be obligated to pay the amount of such interest to the extent
that is in excess of the maximum non-usurious interest rate permitted by
applicable law, (iii) any such excess interest that may have been collected
shall be, at the option of the holder of the instrument evidencing the Secured
Indebtedness, either applied as a credit against the then unpaid principal
amount thereof or refunded to the maker

                                      -12-
<PAGE>

thereof, and (iv) the effective rate of interest shall be automatically reduced
to the maximum non-usurious interest rate permitted under the applicable usury
laws as now or hereafter construed by courts having jurisdiction.

            7.8 PRONOUNS. The pronouns used in this instrument are in the
masculine gender but shall be construed as feminine or neuter as occasions may
require.

            7.9 PRIOR AGREEMENT. This Agreement amends and restates in its
entirety the Amended and Restated Security Agreement and such agreement shall no
longer be in effect.

EXECUTED as of the date set forth above.

                                           DEBTORS:

                                           COMMUNICATION INTELLIGENCE
                                             CORPORATION

                                           By: /s/ Guido DiGregorio
                                              ----------------------------------
                                              Name: Guido DiGregorio
                                              Title:  President

                                           CICI LIMITED

                                           By:  /s/ Guido DiGregorio
                                              ----------------------------------
                                              Name: Guido DiGregorio
                                              Title:  President

                                           CIC ACQUISITION CORP.

                                           By:  /s/ Guido DiGregorio
                                              ----------------------------------
                                              Name:  Guido DiGregorio
                                              Title:  President

                                           SECURED PARTY:

                                           THE PHILIP S. SASSOWER 1996
                                                CHARITABLE REMAINDER
                                                ANNUITY TRUST

                                           By:  /s/ Philip S. Sassower
                                              ----------------------------------
                                              Name:  Philip S. Sassower
                                              Title:  Trustee

                                      -13-
<PAGE>

                                    EXHIBIT A

                           TRADEMARKS AND APPLICATIONS

COMMUNICATION INTELLIGENCE CORPORATION

<TABLE>
<CAPTION>

------------------------------------------------------------------------------
      TRADEMARK         COUNTRY     CLASS(ES)      APPL. NO        REG NO.
                                                  FILING DATE    ISSUE DATE
------------------------------------------------------------------------------
<S>                   <C>          <C>             <C>            <C>
CIC DESIGN            US           009;             456805         1306886
                                                   12/12/83       11/27/84
------------------------------------------------------------------------------
CIC Logo              JP           11              30777/84        1979471
                                                   03/28/84       08/19/87
------------------------------------------------------------------------------
HAND-WRITER           US           009;                            1251563
                                                                  09/20/83
------------------------------------------------------------------------------
HANDWRITER            DE           9              C43046/9WZ       2057970
                                                   01/29/92       02/25/94
------------------------------------------------------------------------------
HANDWRITER            ES           9                1682610        1682610
                                                   02/07/92       10/05/92
------------------------------------------------------------------------------
HANDWRITER            FR           9               92421079       92421079
                                                   06/02/92
------------------------------------------------------------------------------
HANDWRITER            GB           9                1488780       B1488780
                                                   01/24/92       07/15/94
------------------------------------------------------------------------------
HANDWRITER            IT           9              MI92C000573      639696
                                                   01/28/92       12/27/94
------------------------------------------------------------------------------
HANDWRITER            US           009;             455588         1308756
                                                   12/05/83       12/11/84
------------------------------------------------------------------------------
INKSENTRY             US           009;            75/114460       2073729
                                                   06/05/96       06/24/97
------------------------------------------------------------------------------
INKSHRINK             DE           9              C45710/9WZ       2071642
                                                   09/30/93       07/15/94
------------------------------------------------------------------------------
INKSHRINK             FR           9               93/489492      93/489492
                                                   10/26/93       04/08/94
------------------------------------------------------------------------------
INKSHRINK             GB           9                1549138        1549138
                                                   09/30/93       11/04/94
------------------------------------------------------------------------------
INKSHRINK             IT           9              MI93C006790      677464
                                                   10/06/93       05/14/96
------------------------------------------------------------------------------
INKSHRINK             JP           9              99680/1993       3199505
                                                   09/30/93       09/30/96
------------------------------------------------------------------------------
INKSHRINK             US           009;             607828         1931730
                                                   12/07/94       10/31/95
------------------------------------------------------------------------------
INKSNAP               US           009;            76/227340
                                                   03/20/01
------------------------------------------------------------------------------
INKTOOLS              US           009;            75/114459       2152968
                                                   06/05/96       04/21/98
------------------------------------------------------------------------------
ISIGN                 US           009;            75/923089
                                                   02/18/00
------------------------------------------------------------------------------
JOT                   US           009;            75/157916       2219350
                                                   08/29/96       01/19/99
------------------------------------------------------------------------------

                                       A-1
<PAGE>

<CAPTION>

------------------------------------------------------------------------------
      TRADEMARK         COUNTRY     CLASS(ES)      APPL. NO        REG NO.
                                                  FILING DATE    ISSUE DATE
------------------------------------------------------------------------------
<S>                   <C>          <C>             <C>            <C>
MACHANDWRITER         DE           9              C43045/9WZ       2027414
                                                   01/29/92       12/30/92
------------------------------------------------------------------------------
MACHANDWRITER         ES           9                1682611        1682611
                                                   02/07/92       10/05/92
------------------------------------------------------------------------------

MACHANDWRITER         FR           9               92418221       92418221
                                                   05/07/92
------------------------------------------------------------------------------
MacHandwriter         GB           9                1488781       B1488781
                                                   01/24/92       08/26/94
------------------------------------------------------------------------------
MACHANDWRITER         IT           9              MI92C000574      639697
                                                   01/28/92       12/27/94
------------------------------------------------------------------------------
MACHANDWRITER         JP           11              114044/91
                                                   11/01/91
------------------------------------------------------------------------------
MACHANDWRITER         JP           9               19528/96        4074160
                                                   02/27/96       10/24/97
------------------------------------------------------------------------------
MACHANDWRITER         US           009;            74/136449       1721067
                                                   02/05/91       09/29/92
------------------------------------------------------------------------------
PENDOS                DE           9              C43044/9WZ       2027413
                                                   01/29/92       12/30/92
------------------------------------------------------------------------------
PENDOS                ES           9                1682613        1682613
                                                   02/07/92       10/05/92
------------------------------------------------------------------------------
PENDOS                FR           9               92/407612
                                                   02/27/92
------------------------------------------------------------------------------
PENDOS                JP           11              9541/1992       2666994
                                                   02/03/92       05/31/94
------------------------------------------------------------------------------
PENDOS                JP           26
                                                   02/03/92
------------------------------------------------------------------------------
PENDOS                US           009;            75/267373       2149333
                                                   04/01/97       04/07/98
------------------------------------------------------------------------------
PENLABS               DE           16  41         C43047/9WZ       2034773
                                                   01/29/92       04/20/93
------------------------------------------------------------------------------
PENLABS               ES           16               1682614        1682614
                                                   02/07/92       10/05/92
------------------------------------------------------------------------------
PENLABS               ES           41               1682612        1682612
                                                   02/07/92       11/02/93
------------------------------------------------------------------------------
PENLABS               FR           16  41          92/407613
                                                   02/27/92
------------------------------------------------------------------------------
PENLABS               JP           26              9540/1992       2651452
                                                   02/03/92       04/28/94
------------------------------------------------------------------------------
PENMAC                US           009;             606623         1930050
                                                   12/05/94       10/24/95
------------------------------------------------------------------------------
PROFICIENT            CA                            606101         368517
                                                   05/02/88       05/11/90
------------------------------------------------------------------------------
PROFICIENT            US           009;             682379         1486811
                                                   09/03/87       05/03/88
------------------------------------------------------------------------------
QUICKNOTES            US           009;            75/206691
                                                   12/02/96
------------------------------------------------------------------------------
RECOECHO              US           009;            76/227341
                                                   03/20/01
------------------------------------------------------------------------------
SIGCHECK              US           009;            75/114457
                                                   06/05/96
------------------------------------------------------------------------------
SIGN-IT               DE           9              39634957.9      39634957
                                                   08/09/96       04/22/97
------------------------------------------------------------------------------
SIGN-IT               ES           9                2044039        2044039
                                                   08/12/96       10/06/97
------------------------------------------------------------------------------
SIGN-IT               FR           9               96/637456      96/637456
                                                   08/05/96       08/05/96
------------------------------------------------------------------------------
</TABLE>

                                       A-2
<PAGE>

<TABLE>
<CAPTION>

------------------------------------------------------------------------------
      TRADEMARK         COUNTRY     CLASS(ES)      APPL. NO        REG NO.
                                                  FILING DATE    ISSUE DATE
------------------------------------------------------------------------------
<S>                   <C>          <C>             <C>            <C>
SIGN-IT               GB           9                2107049        2107049
                                                   08/05/96       02/07/97
------------------------------------------------------------------------------
SIGN-IT               IT           9              MI96C007329      763200
                                                   08/05/96       04/22/99
------------------------------------------------------------------------------
SIGN-IT               JP           9               92319/96
                                                   08/16/96
------------------------------------------------------------------------------
SIGN-IT               US           009;            75/122341       2319643
                                                   06/19/96       02/15/00
------------------------------------------------------------------------------
SIGN-ON               US           009;            75/778488
                                                   08/16/99
------------------------------------------------------------------------------
SIGVIEW               US           009;            75/114458       2152967
                                                   06/05/96       04/21/98
------------------------------------------------------------------------------
THE CREATIVITY TOOL   US           009;             440887         1951744
                                                   09/27/93       01/23/96
------------------------------------------------------------------------------
THE POWER TO SIGN     US           009;            76/181986
ONLINE                                             12/14/00
------------------------------------------------------------------------------
WORDCOMPLETE          US           009;            75/777613       2422343
                                                   08/13/99       01/16/01
------------------------------------------------------------------------------
YPAD                  US           009;            75/178202       2065304
                                                   05/29/96       05/27/97
------------------------------------------------------------------------------
</TABLE>

CIC ACQUISITION CORP.

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------
                                                                         RENEWAL
  COUNTRY         MARK         CLASS    APP. NO.  REG. NO.    STATUS      DUE
---------------------------------------------------------------------------------
<S>         <C>              <C>       <C>        <C>      <C>         <C>
   Japan    PENOP            9         8-17357    4316551  Registered  2006/02/23
---------------------------------------------------------------------------------
   Japan    Triangle Logo    16        8-17356    4224839  Registered  2004/11/30
---------------------------------------------------------------------------------
   Japan    Triangle Logo    9         8-17355    4117371  Registered  2008/02/20
                                                           1998/02/20
---------------------------------------------------------------------------------
   USA      GRAVITY PROMPT   9 & 16               2256203  Registered  2009/06/29
---------------------------------------------------------------------------------
   USA      PENOP            9                    1798571  Registered  2003/10/12
---------------------------------------------------------------------------------
   USA      Triangle Logo    9 & 16               2315145  Registered  2010/02/08
---------------------------------------------------------------------------------
   USA      CEREMONY         9 & 16    75/470,328          Application
                                                           filed
                                                           1998/04/20
---------------------------------------------------------------------------------
   USA      READY TO SIGN    to be     78/007746           Application
                             determined                    filed
                                                           5/11/2000
---------------------------------------------------------------------------------
   USA      DIGITAL EVIDENCE to be     78/008994           Application
                             determined                    filed
                                                           5/19/2000
---------------------------------------------------------------------------------
</TABLE>

                                       A-3
<PAGE>

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------
                                                                         RENEWAL
  COUNTRY         MARK         CLASS    APP. NO.  REG. NO.    STATUS      DUE
---------------------------------------------------------------------------------
<S>         <C>              <C>       <C>        <C>       <C>         <C>
   USA      Signatureone     9 & 42    75/708,790           Pending;
                                       &                    application
                                       75/708,537           filed May
                                                            18, 1999
---------------------------------------------------------------------------------
   USA      CHEQUEMATCH      9         75/030,621           Pending -
                                                            status not
                                                            verified
---------------------------------------------------------------------------------
   UK       BIOMETRIC TOKEN  9 & 16               2048515   Registered  2005/12/13
---------------------------------------------------------------------------------
   UK       GRAVITY PROMPT    9 & 16              2048519   Registered  2005/12/13
---------------------------------------------------------------------------------
   UK       PENOP            9                    1550038   Registered. 2000/10/08
---------------------------------------------------------------------------------
   UK       TRIANGLE LOGO    9 & 16               2048521   Registered  2005/12/13
---------------------------------------------------------------------------------
   UK       Countermatch     9                    1570030   Registered
                                                            1994/04/23
---------------------------------------------------------------------------------
   UK       Countermatch     16                   1570031   Registered
                                                            1994/04/23
---------------------------------------------------------------------------------
   UK       Chequematch      9                    2027654   Registered
                                                            1995/07/20
---------------------------------------------------------------------------------
   UK       AUTHOSIGN        9                    2136421   Registered
                                                            1997/06/20
---------------------------------------------------------------------------------
   EC       CEREMONY         9 & 16    000766550 000766550  Registered  2008/4/27
---------------------------------------------------------------------------------
   EC       AUTHOSIGN        9         000707588            Filed
                                                            1997/12/16
---------------------------------------------------------------------------------
   Brazil   COUNTERMATCH     9.40 & 9.55         8187719922 Accepted
                                                            1995/09/14
---------------------------------------------------------------------------------
</TABLE>

                                       A-4
<PAGE>

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------
                                                                         RENEWAL
  COUNTRY         MARK         CLASS    APP. NO.  REG. NO.    STATUS      DUE
---------------------------------------------------------------------------------
<S>         <C>              <C>       <C>        <C>      <C>         <C>
   France   CHEQUEMATCH      9                   96/605351 Registered
                                                           1996/01/11
---------------------------------------------------------------------------------
   Italy    CHEQUEMATCH      9         T096C000141         Pending
---------------------------------------------------------------------------------
  Benelux   CHEQUEMATCH      9                    587117   Registered
                                                           1995/12/04
---------------------------------------------------------------------------------
  Germany   CHEQUEMATCH      9                   395506840 Registered
                                                           1995/12/04
---------------------------------------------------------------------------------
Switzerland CHEQUEMATCH      9                    438781   Registered
                                                           1995/12/04
---------------------------------------------------------------------------------
</TABLE>

CICI LIMITED

None

                                       A-5
<PAGE>

                                    EXHIBIT B

                            PATENTS AND APPLICATIONS

COMMUNICATION INTELLIGENCE CORPORATION

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------
PATENT                   INVENTOR(S)         COUNTRY     APPLICATION    APPLICATION
                                                             ISSUE      ISSUE DATE
                                                                             NO.
----------------------------------------------------------------------------------------
<S>                      <C>                 <C>           <C>          <C>
Method for Dynamic       John S. Ostrem      USA           5,933,514    08/03/1999
Reconstruction of        Norman A. Austin
Handwritten Data         Hewitt D. Crane
----------------------------------------------------------------------------------------
Keyless Flat Panel       James Dao           USA           5,049,862    09/17/1991
Portable Computer -      David C. Foyt
Computer Aided Notebook  Jeffrey J. Dao
                         Kenneth R. Allen
----------------------------------------------------------------------------------------
Method for               Hewitt D. Crane     USA           4,531,231    07/23/1985
Distinguishing           John S. Ostrem
Between Complex          Peter K. Edberg
Character Sets
----------------------------------------------------------------------------------------
Confusion Grouping of    Hewitt D. Crane     USA           4,573,196    02/25/1986
Strokes in Pattern       John S. Ostrem
Recognition Method
and System
----------------------------------------------------------------------------------------
Process and Apparatus    Hewitt D. Crane     USA           4,718,102    01/05/1988
Involving Pattern        John S. Ostrem
Recognition
----------------------------------------------------------------------------------------
Complex Pattern          Hewitt D. Crane     USA           4,561,105    12/24/1985
Recognition Method and   John S. Ostrem
System

----------------------------------------------------------------------------------------
</TABLE>

CIC ACQUISITION CORP. - UNITED STATES PATENTS AND APPLICATIONS

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------
  APPLICATION       U.S.     FILING DATE ISSUE DATE      TITLE            STATUS
   SERIAL NO.    PATENT NO.
------------------------------------------------------------------------------------
<S>              <C>        <C>          <C>        <C>                   <C>
   08/298,991    5,544,255  August 31,   August 6,  Method and System     Granted
                               1994        1996     for the Capture,
                                                    Storage, Transport
                                                    and Authentication
                                                    of Handwritten
                                                    Signatures
------------------------------------------------------------------------------------
   08/644,084    5,647,017  May 9, 1996   July 8,   Method and System     Granted
                                           1997     for the Verification
                                                    of Handwritten
                                                    Signatures
------------------------------------------------------------------------------------
   08/859,626    5,818,955    May 20,   October 6,  Document and          Granted
                               1997        1998     Signature
                                                    Verification System
                                                    and Method
------------------------------------------------------------------------------------
</TABLE>

                                      B-1
<PAGE>

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------
  APPLICATION       U.S.     FILING DATE ISSUE DATE      TITLE            STATUS
   SERIAL NO.    PATENT NO.
------------------------------------------------------------------------------------
<S>              <C>        <C>          <C>        <C>                   <C>
   09/024,835    6,091,835   February    July 18,   Method and System     Granted
                             17, 1998      2000     for Transcribing
                                                    Electronic
                                                    Affirmations
------------------------------------------------------------------------------------
   09/112,224    6,064,751    July 8,     May 16,   Document and          Granted
                               1998        2000     Signature Data
                                                    Capture System and
                                                    Method
------------------------------------------------------------------------------------
   09/477,462        -      January 4,       -      Method and System     Pending
                               2000                 for the Capture,
                                                    Storage, Transport
                                                    and Authentication
                                                    of Handwritten
                                                    Signatures
------------------------------------------------------------------------------------
   09/505,495        -       February        -      Method and System     Pending
                             17, 2000               for Transcribing
                                                    Electronic
                                                    Affirmations
------------------------------------------------------------------------------------
</TABLE>

CIC ACQUISITION CORP. - FOREIGN PATENTS AND APPLICATIONS

<TABLE>
<CAPTION>

------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
APPLICATION SERIAL NO.    PATENT NO.      COUNTRY        FILING DATE     ISSUE DATE              TITLE               STATUS
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
<S>                         <C>          <C>            <C>              <C>          <C>                            <C>
       34614/95             688589       Australia      February 25,     August 13,   Method and System for the      Granted
                                                            1997            1998      Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
       71860/98               -          Australia      June 12, 1998        -        Method and System for the      Pending
                                                                                      Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
        2198845               -            Canada       February 28,         -        Method and System for the      Pending
                                                            1997                      Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
      95195333.8              -            China       March 27, 1997        -        Method and System for the      Pending
                                                                                      Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
      95931027.7              -            Europe      March 10, 1997        -        Method and System for the      Pending
                                                        (unofficial)                  Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
</TABLE>

                                      B-2
<PAGE>

<TABLE>
<CAPTION>

------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
APPLICATION SERIAL NO.    PATENT NO.      COUNTRY        FILING DATE     ISSUE DATE              TITLE               STATUS
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
<S>                         <C>          <C>            <C>              <C>          <C>                            <C>
       8-508954               -            Japan        February 17,         -        Method and System for the      Pending
                                                            1997                      Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
       97-701353              -            Korea        February 28,         -        Method and System for the      Pending
                                                            1997                      Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
        292439              292439      New Zealand     February 20,      February    Method and System for the      Granted
                                                            1997          10, 1999    Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
       9700897-3              -          Singapore      February 20,         -        Method and System for the      Pending
                                                            1995                      Capture, Storage,
                                                                                      Transport and
                                                                                      Authentication of
                                                                                      Handwritten Signatures
------------------------ ------------- --------------- ---------------- ------------- ---------------------------- ------------
</TABLE>

CICI LIMITED

None

                                      B-3
<PAGE>

                                    EXHIBIT C

                                LEASED COLLATERAL
<TABLE>
<CAPTION>

---------------------------------------------------------------------------------
LEASING COMPANY             LEASE NUMBER               PRODUCT LEASED
---------------------------------------------------------------------------------

---------------------------------------------------------------------------------
<S>                         <C>                        <C>
Xerox                       950329631                  Photo Copier
                                                       Serial # 6W6-311599
---------------------------------------------------------------------------------
Dell Financial Services     0017336519001              Dell File Server
                                                       PowerEdge 2300 Server
---------------------------------------------------------------------------------
Dell Financial Services     0017336519002              Dell Hard Drives for
                                                       PowerEdge 2300 Server
---------------------------------------------------------------------------------
Dell Financial Services     0017336519003              Dell Dimension XPST
---------------------------------------------------------------------------------
Dell Financial Services     0017336519004              Dell Dimension XPST (2)
---------------------------------------------------------------------------------
</TABLE>

                                      C-1
<PAGE>

                                    EXHIBIT D

                        DEBTORS' CHIEF PLACE OF BUSINESS

Communication Intelligence Corporation
275 Shoreline Drive
Redwood Shores, CA  94065-1413

CICI Limited
275 Shoreline Drive
Redwood Shores, CA  94065-1413

CIC Acquisition Corp.
275 Shoreline Drive
Redwood Shores, CA  94065-1413

                                      D-1
<PAGE>

                                    EXHIBIT E

                              TO SECURITY AGREEMENT

                              FINANCING STATEMENTS

<TABLE>
<CAPTION>

          SECURED PARTY                    DEBTOR              FILE NUMBER/       DATE OF FILING     JURISDICTION OF
          -------------                    ------              ------------       --------------     ---------------
                                                                   TYPE                                   FILING
                                                                   ----                                   ------
<S>                                     <C>                <C>                      <C>             <C>
Philip S. Sassower 1996                 Communication          199917660895/        06/22/1999         California -
Charitable Remainder Annuity Trust      Intelligence             Original                           Secretary of State
                                         Corporation

Philip S. Sassower 1996                 Communication          1999319C0459/        11/09/1999         California -
Charitable Remainder Annuity Trust      Intelligence           Amendment to                         Secretary of State
                                         Corporation           199917660895

Philip S. Sassower 1996                 Communication          1999-111587/         06/30/1999         California -
Charitable Remainder Annuity Trust      Intelligence             Original                            San Mateo County
                                         Corporation

Philip S. Sassower 1996                 Communication          1999-192870/         11/22/1999         California -
Charitable Remainder Annuity Trust      Intelligence           Amendment to                          San Mateo County
                                         Corporation            1999-111587
</TABLE>

                                      E-1<PAGE>

                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is made and
entered into as of June 19, 2001, between Communication Intelligence
Corporation, a Delaware corporation (the "COMPANY"), and The Philip S. Sassower
1996 Charitable Remainder Annuity Trust (the "TRUST").

            WHEREAS, the Company has issued and sold to the Trust a convertible
note in the original principal amount of $3,000,000 (the "NOTE");

            WHEREAS, the Note is convertible into shares of Common Stock of the
Company at the conversion price set forth in the Note;

            WHEREAS, the Company desires to grant registration rights with
respect to the shares of Common Stock issuable upon conversion of the Note.

            NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants, agreements and conditions contained
herein, the sufficiency of which is hereby acknowledged, the Company and the
Trust hereby agree as follows:

            1.    DEFINITIONS. Capitalized terms used and not otherwise defined
herein shall have the meanings given such terms in the Note. As used in this
Agreement, the following terms shall have the following meanings:

                  "AFFILIATE" means, with respect to any Person, any other
Person that directly or indirectly controls or is controlled by or under common
control with such Person. For purposes of this definition, "CONTROL," when used
with respect to any Person, means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms "AFFILIATED," "CONTROLLING" and "CONTROLLED" have
meanings correlative to the foregoing.

                  "BOARD" shall have the meaning set forth in Section 3(n).

                  "BUSINESS DAY" means any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State of New York generally are authorized or required by law or other
government actions to close.

                  "COMMISSION" means the Securities and Exchange Commission.

                  "COMMON STOCK" means the Company's Common Stock, par value
$.01 per share.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

<PAGE>

                  "HOLDER" or "HOLDERS" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "INDEMNIFIED PARTY" shall have the meaning set forth in
Section 5(c).

                  "INDEMNIFYING PARTY" shall have the meaning set forth in
Section 5(c).

                  "LOSSES" shall have the meaning set forth in Section 5(a).

                  "PERSON" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or political
subdivision thereof) or other entity of any kind.

                  "PROCEEDING" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

                  "PROSPECTUS" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference in such Prospectus.

                  "REGISTRABLE SECURITIES" means (i) the shares of Common Stock
issuable to the holder of the Note upon conversion of the Note pursuant to its
terms, and (ii) any other dividend or other distribution with respect to,
conversion or exchange of, or in replacement of, the foregoing.

                  "REGISTRATION STATEMENT" means the registration statement and
any additional registration statements contemplated by Section 2, including (in
each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference in such
registration statement.

                  "RULE 144" means Rule 144 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar Rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "RULE 158" means Rule 158 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar Rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                                       2
<PAGE>

                  "RULE 415" means Rule 415 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar Rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended.

            2.    REGISTRATION RIGHTS. During the three year period commencing
on the date hereof and ending on June 18, 2004, the holder or the Note may
exercise a demand registration right with respect to the Registrable Securities
by delivering to the Company a written notice (a "DEMAND REGISTRATION NOTICE")
informing the Company of such exercise and specifying the number of Registrable
Securities to be offered by the Holder. Immediately following receipt of a
Demand Registration Notice, the Company will cause to be filed with the
Commission, within 30 days of receipt of such notice, a "shelf" registration
statement covering all Registrable Securities for an offering to be made on a
continuous basis pursuant to Rule 415. Such shelf registration statement shall
be on Form S-3 (except if the Company is not then eligible to register for
resale the Registrable Securities on Form S-3, in which case such registration
shall be on another appropriate Form in accordance herewith).

            The Company shall use its reasonable best efforts to cause the
Registration Statement to be declared effective under the Securities Act as
promptly as possible after the filing thereof, and to keep such Registration
Statement continuously effective under the Securities Act until such date as is
the earlier of (x) the date when all Registrable Securities covered by such
Registration Statement have been sold or (y) the date on which all of the
Registrable Securities may be sold without any restriction pursuant to Rule
144(k) or any successor provision as determined by the counsel to the Company
pursuant to a written opinion letter, addressed to the Company's transfer agent
to such effect (the "EFFECTIVENESS PERIOD"). If the Company is notified orally
or in writing by the Commission that the Commission has no comments with respect
to the Registration Statement (the "COMMISSION NOTICE"), the Company shall use
its reasonable best efforts to cause the Registration Statement to be declared
effective no later than five (5) Business Days after receipt of the Commission
Notice. If an additional Registration Statement is required to be filed because
the actual number of shares of Common Stock into which the Note is convertible
exceeds the number of shares of Common Stock initially registered, the Company
shall have twenty (20) Business Days to file such additional Registration
Statement, and the Company shall use its reasonable best efforts to cause such
additional Registration Statement to be declared effective by the Commission as
soon as possible.

            3.    REGISTRATION PROCEDURES. In connection with the Company's
registration obligations hereunder, the Company shall:

                  (a) Furnish to any Holder copies of all such documents
proposed to be filed and shall use its reasonable best efforts to reflect in
each such document, when so filed with the Commission, such comments as any
Holder may reasonably propose and at the request of any Holder cause its
officers and directors, counsel and independent certified public accountants

                                       3
<PAGE>

to respond to such inquiries as shall be necessary, in the reasonable opinion of
counsel to any Holder, to conduct a reasonable investigation within the meaning
of the Securities Act.

                  (b)(i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and
file with the Commission such amendments in order to register for resale under
the Securities Act all of the Registrable Securities; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement,
and as so supplemented or amended to be filed pursuant to Rule 424 (or any
similar provisions then in force) promulgated under the Securities Act; (iii)
respond as promptly as possible to any comments received from the Commission
with respect to the Registration Statement or any amendment thereto and as
promptly as possible provide any Holder true and complete copies of all
correspondence from and to the Commission relating to the Registration
Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement during the
applicable period in accordance with the intended methods of disposition by any
Holder thereof set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.

                  (c) Notify any Holder as promptly as possible (and, in the
case of (i)(A) below, not less than five (5) Business Days prior to such filing)
and (if requested by any such Person) confirm such notice in writing no later
than one (1) Business Day following the day (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment to the Registration Statement
is proposed to be filed; (B) when the Commission notifies the Company whether
there will be a "review" of such Registration Statement and whenever the
Commission comments in writing on such Registration Statement and (C) with
respect to the Registration Statement or any post-effective amendment thereto,
when the same has become effective; (ii) of any request by the Commission or any
other Federal or state governmental authority for amendments or supplements to
the Registration Statement or Prospectus or for additional information; (iii) of
the issuance by the Commission of any stop order suspending the effectiveness of
the Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event that requires any revisions to
the Registration Statement, Prospectus or other documents so that, in the case
of the Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

                  (d) Use its reasonable best efforts to avoid the issuance of,
or, if issued, obtain the withdrawal of, (i) any order suspending the
effectiveness of the Registration Statement or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

                                       4
<PAGE>

                  (e) If requested by any Holder of the Registrable Securities,
(i) promptly incorporate in a Prospectus supplement or post-effective amendment
to the Registration Statement such information as should be included therein and
(ii) make all required filings of such Prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received
notification of the matters to be incorporated in such Prospectus supplement or
post-effective amendment.

                  (f) Furnish to each Holder, without charge, at least one
conformed copy of each Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or
deemed to be incorporated therein by reference, and all exhibits to the extent
requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission.

                  (g) Promptly deliver to each Holder, without charge, as many
copies of the Prospectus or Prospectuses (including each Form of prospectus) and
each amendment or supplement thereto as such Persons may reasonably request; and
the Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection with the
offering and sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto.

                  (h) Promptly use its reasonable best efforts to register or
qualify or cooperate with the selling Holders in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Holder requests in writing, to keep each such registration or qualification
(or exemption therefrom) effective during the Effectiveness Period and to do any
and all other acts or things necessary or advisable to enable the disposition in
such jurisdictions of the Registrable Securities covered by a Registration
Statement; provided, however, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified
or to take any action that would subject it to general service of process in any
such jurisdiction where it is not then so subject.

                  (i) Cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing the Registrable Securities
to be sold pursuant to a Registration Statement, which certificates shall be
free of all restrictive legends when sold or transferred pursuant to the
Registration Statement, and to enable such Registrable Securities to be in such
denominations and registered in such names as any Holder may request within two
(2) Business Days after such request.

                  (j) Upon the occurrence of any event contemplated by Section
3(c)(v), as promptly as possible, (i) prepare a supplement or amendment,
including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the

                                       5
<PAGE>

circumstances under which they were made, not misleading, and (ii) advise each
Holder as to when they may resume distribution of the Registrable Securities.

                  (k) Use its reasonable best efforts to maintain the listing of
the Common Stock on The Nasdaq SmallCap Market and cause all Registrable
Securities relating to such Registration Statement to be listed on The Nasdaq
SmallCap Market or any such other securities exchange, quotation system, market
or over-the-counter bulletin board, if any, on which the Common Stock is then
listed.

                  (l) Comply in all material respects with all applicable rules
and regulations of the Commission and make generally available to its security
holders earning statements satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is a
fiscal year) commencing on the first day of the first fiscal quarter of the
Company after the effective date of the Registration Statement, which statement
shall conform to the requirements of Rule 158.

                  (m) Request each selling Holder to furnish to the Company
information regarding such Holder and the distribution of such Registrable
Securities as is required by law to be disclosed in the Registration Statement.

                  (n) If (i) there is material non-public information regarding
the Company which the Company's Board of Directors (the "BOARD") reasonably
determines not to be in the Company's best interest to disclose and which the
Company is not otherwise required to disclose, or (ii) there is a significant
business opportunity (including, but not limited to, the acquisition or
disposition of assets (other than in the ordinary course of business) or any
merger, consolidation, tender offer or other similar transaction) available to
the Company which the Board reasonably determines not to be in the Company's
best interest to disclose and which the Company would be required to disclose
under the Registration Statement, then the Company may suspend use of a
registration statement for a period not to exceed twenty (20) consecutive days,
provided that the Company may not suspend its obligation under this Section 3(n)
for more than forty-five (45) days in the aggregate during any 12-month period;
provided, however, that no such suspension shall be permitted for consecutive
twenty (20) day periods, arising out of the same set of facts, circumstances or
transactions; and provided further, that if the Company decides to suspend its
obligation pursuant to this sentence, it shall give written notice of such
suspension to each Holder to that effect. If the Company shall give notice of
the occurrence of any event of the kind described in Section 3(c)(ii),
3(c)(iii), 3(c)(iv) and 3(c)(v) or of the postponement or suspension of the
Registration Statement pursuant to this Section 3(n), then the Effectiveness
Period shall be extended by the number of days during such period from and
including the date of the giving of such notice to and including the date when
each Holder shall have received (i) the copies of the supplement or amendment to
the Registration Statement contemplated by Section 3(j) (if an amended or
supplemental prospectus is required) or (ii) the Advice (as defined below) (if
no supplement or amendment to the Registration Statement is required).

                                       6
<PAGE>

                  (o) Each Holder covenants and agrees that it will comply with
the prospectus delivery requirements of the Securities Act as applicable to them
in connection with sales of Registrable Securities pursuant to the Registration
Statement. Each Holder further agrees by its acquisition of such Registrable
Securities that, upon receipt of a notice from the Company of the occurrence of
any event of the kind described in Section 3(c)(iii), 3(c)(iv), 3(c)(v) or 3(n),
such Holder will forthwith discontinue disposition of such Registrable
Securities under the Registration Statement until such Holder's receipt of the
copies of the supplemented Prospectus and/or amended Registration Statement
contemplated by Section 3(j), or until it is advised in writing (the "ADVICE")
by the Company that the use of the applicable Prospectus may be resumed.

            4.    REGISTRATION EXPENSES. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not the Registration Statement is filed or becomes
effective and whether or not any Registrable Securities are sold pursuant to the
Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with The Nasdaq SmallCap Market and each other securities
exchange or market on which Registrable Securities are required hereunder to be
listed, (B) with respect to filings required to be made with the Commission, (C)
with respect to filings required to be made under the NASD and the NASD
Regulation, Inc. and (D) in compliance with state securities or Blue Sky laws,
(ii) printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities and of printing prospectuses), (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement, including, without limitation, the Company's
independent public accountants (including the expenses of any comfort letters or
costs associated with the delivery by independent public accountants of a
comfort letter or comfort letters). In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit, and the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

            No Holder may participate in any underwritten registration hereunder
unless such person (i) agrees to sell its Registrable Securities on the basis
reasonably provided in any underwriting arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

            5.    INDEMNIFICATION. (a) INDEMNIFICATION BY THE COMPANY. The
Company shall, notwithstanding any termination of this Agreement, indemnify and
hold harmless each Holder, the officers, directors, agents and employees of each
of them, each Person who controls (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) any such Holder and the
officers, directors, agents and employees of each such controlling Person, to

                                       7
<PAGE>

the fullest extent permitted by applicable law, from and against any and all
losses, claims, damages, liabilities, costs (including, without limitation,
reasonable costs of preparation and reasonable attorneys' fees) and expenses
(collectively, "LOSSES"), as incurred, arising out of or relating to any untrue
or alleged untrue statement of a material fact contained in the Registration
Statement, any Prospectus or any Form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein (in the case of any
Prospectus or Form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, except to the extent,
but only to the extent, that such untrue statements or omissions are based
primarily upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, which information was
reasonably relied on by the Company for use therein or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such Form of Prospectus or in any amendment or supplement thereto.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of an Indemnified Party and shall survive the
transfer of the Registrable Securities by the Holders.

                  (b) INDEMNIFICATION BY HOLDERS. Each Holder shall, severally
and not jointly, indemnify and hold harmless the Company, the directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses, as
incurred, arising solely out of or based solely upon any untrue statement of a
material fact contained in the Registration Statement, any Prospectus, or any
Form of prospectus, or arising solely out of or based solely upon any omission
of a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or Form of prospectus or
supplement thereto, in the light of the circumstances under which they were
made) not misleading, to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished in writing by
such Holder to the Company specifically for inclusion in the Registration
Statement or such Prospectus and that such information was reasonably relied
upon by the Company for use in the Registration Statement, such Prospectus or
such Form of prospectus. Notwithstanding anything to the contrary contained
herein, a Holder shall be liable under this Section 5(b) for only that amount as
does not exceed the net proceeds to such Holder as a result of the sale of
Registrable Securities pursuant to such Registration Statement.

                  (c) CONDUCT OF INDEMNIFICATION PROCEEDINGS. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "INDEMNIFIED PARTY"), such Indemnified Party promptly shall notify the
Person from whom indemnity is sought (the "INDEMNIFYING PARTY") in writing, and
the Indemnifying Party may assume the defense thereof, including the employment
of counsel reasonably satisfactory to the Indemnified Party and the payment of
all fees and expenses incurred in connection with defense thereof; provided,
that the failure of any Indemnified Party to give such notice shall not relieve
the Indemnifying

                                       8
<PAGE>

Party of its obligations or liabilities pursuant to this Agreement except to the
extent the Indemnifying Party is actually prejudiced by such failure to give
notice.

            An Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party
or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that an actual or potential conflict of
interest is likely to exist if the same counsel were to represent such
Indemnified Party. In such case, the Indemnified Party's counsel may conduct the
defense of the Indemnified Party to the extent reasonably necessary to protect
the conflict of interest of such party and the Indemnified Party shall be
entitled to indemnification therefor. The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

                  (d) CONTRIBUTION. If a claim for indemnification under Section
5(a) or 5(b) is unavailable or insufficient to an Indemnified Party, then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in this Agreement, any reasonable attorneys' or other reasonable fees or
expenses reasonably incurred by such party in connection with any Proceeding to
the extent such party would have been indemnified for such fees or expenses if
the indemnification provided for in this Section was available to such party in
accordance with its terms. Notwithstanding anything to the contrary contained
herein, none of the Holders shall be liable or required to contribute under this
Section 5(d) for any amount in excess of the net proceeds received by such
Holder as a result of the sale of Registrable Securities pursuant to such
Registration Statement. No party shall be liable for contribution with respect
to any action or claim settled without its written consent; provided however,
that such written consent was not unreasonably withheld.

                                       9
<PAGE>

            The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

            The indemnity and contribution agreements contained in this Section
are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

            6.    RULE 144. As long as any Holder owns any Registrable
Securities, the Company shall timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be
filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of
the Exchange Act and to promptly furnish such Holders with true and complete
copies of all such filings. As long as any Holder owns any Registrable
Securities, if the Company is not required to file reports pursuant to Section
13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders
and make publicly available in accordance with Rule 144(c) promulgated under the
Securities Act annual and quarterly financial statements, together with a
discussion and analysis of such financial statements in form and substance
substantially similar to those that would otherwise be required to be included
in reports required by Section 13(a) or 15(d) of the Exchange Act, as well as
any other information required thereby, in the time period that such filings
would have been required to have been made under the Exchange Act. The Company
further shall take such further action as any Holder may reasonably request, all
to the extent required from time to time to enable such Person to sell the
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 promulgated under the
Securities Act, including providing any legal opinions referred to in the
Purchase Agreement. Upon the written request of any Holder, the Company shall
deliver to such Holder a written certification of a duly authorized officer as
to whether it has complied with such requirements.

            7.    MISCELLANEOUS. (a) REMEDIES. In the event of a breach by the
Company or by a Holder, of any of their obligations under this Agreement, each
Holder or the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law and under this Agreement, including recovery
of damages, will be entitled to specific performance of its rights under this
Agreement. The Company and each Holder agree that monetary damages would not
provide adequate compensation for any losses incurred by reason of a breach by
it of any of the provisions of this Agreement. It is accordingly agreed that the
parties shall be entitled to specific performance of the provisions of this
Agreement in addition to any other remedy to which any of them may be entitled
at law or in equity.

                  (b) NO INCONSISTENT AGREEMENTS. The Company has not, as of the
date hereof entered into any agreement that is currently in effect, nor shall
the Company, on or after the date of this Agreement, enter into any agreement
with respect to its securities that is inconsistent with the rights granted to
the Holders in this Agreement or otherwise conflicts with the provisions hereof.
Without limiting the generality of the foregoing, without the written consent of
each Holder, the Company shall not grant to any Person the right to request the

                                       10
<PAGE>

Company to register any securities of the Company under the Securities Act
unless the rights so granted are subject in all respects to the prior rights in
full of the Holders set forth herein, and are not otherwise in conflict with the
provisions of this Agreement.

                  (c) PIGGY-BACK REGISTRATIONS. If at any time when there is not
an effective Registration Statement covering shares of Common Stock issuable
upon conversion of the Note, the Company shall determine to prepare and file
with the Commission a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or its then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, the Company shall send to each Holder of Registrable Securities
written notice of such determination and, if within thirty (30) days after
receipt of such notice, any such Holder shall so request in writing (which
request shall specify the Registrable Securities intended to be disposed of by
the Holders), the Company will use its reasonable best efforts to cause the
registration under the Securities Act of all Registrable Securities which the
Company has been so requested to register by such Holder, to the extent
necessary to permit the disposition of the Registrable Securities so to be
registered, provided that if at any time after giving written notice of its
intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such
determination to such Holder and, thereupon, (i) in the case of a determination
not to register, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration pursuant to this Section 7(c)
(but not from its obligation to pay expenses in accordance with Section 4
hereof), and (ii) in the case of a determination to delay registering, shall be
permitted to delay registering any Registrable Securities being registered
pursuant to this Section 7(c) for the same period as the delay in registering
such other securities. The Company shall include in such registration statement
all or any part of such Registrable Securities such Holder requests to be
registered; provided, however, that, subject to Section 2 hereof, the Company
shall not be required to register any Registrable Securities pursuant to this
Section 7(c) that are eligible for sale pursuant to Rule 144(k) of the
Securities Act. In the case of an underwritten public offering, if the managing
underwriter should reasonably object to the inclusion of the Registrable
Securities in such registration statement, and reasonably determine that the
inclusion of such Registrable Securities would materially adversely affect the
offering contemplated in such registration statement, and based on such
determination recommends inclusion in such registration statement of fewer or
none of the Registrable Securities of the Holders, then (x) the number of
Registrable Securities of the Holders included in such registration statement
shall be reduced pro-rata among such Holders (based upon the number of
Registrable Securities requested to be included in the registration) if the
underwriter(s) recommends the inclusion of fewer Registrable Securities, or (y)
none of the Registrable Securities of the Holders shall be included in such
registration statement if the underwriter(s) recommends the inclusion of none of
such Registrable Securities; provided, however, that if securities are being
offered for the account of other persons or entities as well as the Company,
such reduction shall not represent a greater fraction of the number of
Registrable Securities intended to be offered by the Holders than the fraction
of similar reductions imposed on such other persons or entities (other than the
Company).

                                       11
<PAGE>

                  (d) CONSENT TO JURISDICTION. The Company (A) hereby
irrevocably submits to the jurisdiction of the United States District Court
sitting in the Southern District of New York and if jurisdiction of such Federal
courts is not available, the state courts of New York, for the purposes of any
suit, action or proceeding arising out of or relating to this Agreement or the
Note and (B) hereby waives, and agrees not to assert in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
such court, that the suit, action or Proceeding is brought in an inconvenient
forum or that the venue of the suit, action or Proceeding is improper. The
Company consents to process being served in any such suit, action or Proceeding
by mailing a copy thereof to such party at the address in effect for notices to
it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing in this Section 7(d)
shall affect or limit any right to serve process in any other manner permitted
by law.

                  (e) AMENDMENTS AND WAIVERS. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and each of the Holders. Notwithstanding the foregoing, a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders and that does not directly or indirectly
affect the rights of any other Holders may be given by Holders to which such
waiver or consent relates; provided, however, that the provisions of this
sentence may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence.

                  (f) NOTICES. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed to have been given on (i) the date of transmission (if
confirmed on such date), if such notice or communication is delivered via
facsimile at the facsimile telephone number specified for notice prior to 5:00
p.m., eastern standard time, on a Business Day, (ii) the Business Day after the
date of transmission, if such notice or communication is delivered via facsimile
at the facsimile telephone number specified for notice later than 5:00 p.m.,
eastern standard time, on any date and earlier than 11:59 p.m., eastern standard
time, on such date (if confirmed on such date), (iii) the second Business Day
following the date of mailing, if sent by nationally recognized overnight
courier service or (iv) actual receipt by the party to whom such notice is
required to be given, whichever shall first occur. The address for such
communications with respect to the Company shall be addressed to:

                        Communication Intelligence
                        Corporation
                        275 Shoreline Drive
                        Redwood Shores, CA  94065-1413
                        Attention:  President
                        Tel: (650) 802-7888
                        Fax: (650) 802-7777

                                       12
<PAGE>

                        with a copy to:

                        Communication Intelligence
                        Corporation
                        275 Shoreline Drive
                        Redwood Shores, CA  94065-1413
                        Attention:  Chief Financial Officer
                        Tel: (650) 802-7888
                        Fax: (650) 802-7777

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have designated in writing to the other parties hereto
by such notice. Copies of notices to any Holder shall be sent to (i) The Philip
S. Sassower 1996 Charitable Remainder Annuity Trust, c/o Mr. Philip Sassower,
135 East 57th Street, New York, New York 10022, Fax: (212) 319-4930 and (ii)
Baer Marks & Upham LLP, 805 Third Avenue, New York, New York 10022, Attention:
Jonathan J. Russo, Esq., Fax: (212) 702-5941.

                  (g) SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and permitted
assigns and shall inure to the benefit of each Holder and its successors and
assigns. The Company may not assign this Agreement or any of its rights or
obligations hereunder without the prior written consent of each Holder.

                  (h) ASSIGNMENT OF REGISTRATION RIGHTS. The rights of each
Holder hereunder, including the right to have the Company register for resale
the Registrable Securities in accordance with the terms of this Agreement, shall
be automatically assignable by each Holder to any transferee of such Holder of
all or a portion of the Registrable Securities if: (i) the Holder agrees in
writing with the transferee or assignee to assign such rights, and a copy of
such agreement is furnished to the Company as promptly as possible after such
assignment, (ii) the Company is, as promptly as possible after such transfer or
assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such
registration rights are being transferred or assigned, (iii) following such
transfer or assignment the further disposition of such securities by the
transferee or assignees is restricted under the Securities Act and applicable
state securities laws, (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this Section, the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
of this Agreement. In addition, each Holder shall have the right to assign its
rights hereunder to any other Person with the prior written consent of the
Company, which consent shall not be unreasonably withheld. Additionally, each
Holder shall have the right to assign its rights hereunder to any Affiliate of
such Holder without the consent to the Company. The rights to assignment shall
apply to the Holders (and to subsequent) successors and assigns.

                  (i) COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and, all of which taken together shall constitute one and the same
Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the

                                       13
<PAGE>

party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof. Notwithstanding anything to the contrary contained herein, no Holder
may assign its rights hereunder to any Person in the same or similar business to
that of the Company.

                  (j) GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

                  (k) CUMULATIVE REMEDIES. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law.

                  (l) SEVERABILITY. If any term, provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable in any respect, the remainder of the terms, provisions, covenants
and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated, and the parties hereto
shall use their reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

                  (m) HEADINGS. The headings herein are for convenience only, do
not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

                  (n) OPINION. Within two (2) Business Days after any
Registration Statement which includes the Registrable Securities is declared
effective by the Commission, the Company shall deliver, or shall cause legal
counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Holders whose Registrable Securities are included
in such Registration Statement) confirmation that such Registration Statement
has been declared effective by the Commission in the Form attached hereto as
EXHIBIT A.

                                       14
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed by their respective authorized persons as
of the date first indicated above.

                                    COMMUNICATION INTELLIGENCE CORPORATION

                                    By: /s/ Marjorie Bailey
                                       ---------------------------------
                                       Name: Marjorie Bailey
                                       Title: Chief Financial Officer

                                    THE PHILIP S. SASSOWER 1996 CHARITABLE
                                    REMAINDER ANNUITY TRUST

                                    By: /s/ Philip S. Sassower
                                        --------------------------------
                                       Name:  Philip S. Sassower
                                       Title:  Trustee

                                       15
<PAGE>

                                    EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

American Stock Transfer
     & Trust Company
59 Maiden Lane
New York, New York  10038
Attention: Diane Strong

            Re:    Communication Intelligence Corporation
                   --------------------------------------

Ladies and Gentlemen:

            We are counsel to Communication Intelligence Corporation, a Delaware
corporation (the "COMPANY"), and have represented the Company in connection with
that certain convertible note (the "NOTE") entered into by the Company in favor
of The Philip S. Sassower 1996 Charitable Remainder Annuity Trust (the "TRUST").
Pursuant to the Note, the Trust (i) made a loan to the Company in the aggregate
principal amount of $3,000,000, which aggregate principal amount was convertible
into shares of the Company's common stock, par value $.01 per share (the "COMMON
STOCK") and (ii) entered into a Registration Rights Agreement with the Trust
(the "REGISTRATION RIGHTS AGREEMENT") pursuant to which the Company agreed,
among other things, to register the Registrable Securities (as defined in the
Registration Rights Agreement) under the Securities Act of 1933, as amended (the
"1933 ACT"). In connection with the Company's obligations under the Registration
Rights Agreement, on ____________ ___, 200_, the Company filed a Registration
Statement on Form (File No. 333-_____________) (the "REGISTRATION STATEMENT")
with the Securities and Exchange Commission (the "SEC") relating to the
Registrable Securities which names each holder of Registrable Securities as a
selling stockholder thereunder.

            In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                    Very truly yours,

                                    [COMPANY'S COUNSEL]

                                      A-1

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