Document:

Registration Rights Agreement

                                                                      Exhibit
    10.35

    

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this "Agreement")
      is
      made and entered into as of June 15, 2007, by and among Communication
      Intelligence Corporation, a Delaware corporation (the "Company"),
      and
      the purchasers listed on Schedule
      I
      hereto
      (the "Purchasers").
      

    

    This
      Agreement is being entered into pursuant to the Note and Warrant Purchase
      Agreement dated June 15, 2007 between and among the Company and the Purchasers
      (the "Purchase
      Agreement").

    

    The
      Company and the Purchasers hereby agree as follows:

    

    1. Definitions.

    

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

    

      "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 California 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 $0.01 per share.

    

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

    

      "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 4(c).

    

      "Indemnifying
      Party"
      shall
      have the meaning set forth in Section 4(c).

     

    "Losses"
      shall
      have the meaning set forth in Section 4(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
      the shares of Common Stock issuable upon exercise of the Warrants. 

    

    "Registration
      Statement"
      means
      the registration statements 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
      145”
means
      Rule 145 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. Company
      Registration.

    

    (a) Notice
      of
      Registration.
      If at
      any time or from time to time the Company shall determine to register any of
      its
      equity securities (including as a result of any demand registration) other
      than
      (i) a registration relating solely to employee benefit plans or (ii) a
      registration relating solely to a Rule 145 transaction, the Company
      will:

    

    (i) promptly
      give to each Purchaser written notice thereof but not less than fifteen (15)
      days prior to filing of such registration statement; and

    

    (ii) include
      in such registration (and any related qualifications including compliance with
      applicable state securities laws), and in any underwriting involved therein,
      all
      the Registrable Securities specified in a written request or requests, made
      within twenty (20) days after the date of such written notice from the Company,
      by any Purchaser. If a Purchaser decides not to include all of its Registrable
      Securities in any registration statement thereafter filed by the Company, such
      Purchaser shall nevertheless continue to have the right to include any
      Registrable Securities in any subsequent registration statement or registration
      statements as may be filed by the Company with respect to offerings of its
      securities, all upon the terms and conditions set forth herein.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) Underwriting.
      If the
      registration of which the Company gives notice is for a registered public
      offering involving an underwriting, the Company shall so advise the Purchasers
      as a part of the written notice given pursuant to Section 2(a)(i). In such
      event, the right of any Purchaser to registration pursuant to Section 2 shall
      be
      conditioned upon such Purchaser’s participation in such underwriting, and the
      inclusion of Registrable Securities in the underwriting shall be limited to
      the
      extent provided herein.

    All
      Purchasers proposing to distribute their securities through such underwriting
      shall (together with the Company and the other Purchasers distributing their
      securities through such underwriting) enter into an underwriting agreement
      in
      customary form with the managing underwriter selected for such underwriting
      by
      the Company. Notwithstanding any other provision of this Section 2, if the
      managing underwriter determines that marketing factors require a limitation
      of
      the number of shares to be underwritten, the number of shares that may be
      included in the underwriting shall be allocated, first, to the Company; second,
      to those holders of registration rights under agreements relating thereto in
      existence immediately prior to the date hereof; third, to Purchasers of
      Registrable Securities who possess registration rights pursuant to this
      Agreement; and third, to any stockholder of the Company (other than a Purchaser
      and other than a stockholder holding registration rights under agreements
      relating thereto in existence immediately prior to the date hereof). The Company
      shall so advise all Purchasers requesting to be included in the registration
      and
      underwriting, and the number of shares of Registrable Securities that may be
      included in the registration and underwriting shall be allocated among all
      the
      Purchasers requesting to be included in the registration and underwriting in
      proportion, as nearly as practicable, to the respective amounts of Registrable
      Securities sought to be included by them. To facilitate the allocation of shares
      in accordance with the above provisions, the Company or the underwriters may
      round the number of shares allocated to any Purchaser to the nearest 100 shares.
      If any Purchaser disapproves of the terms of any such underwriting, such person
      may elect to withdraw therefrom by written notice to the Company. For any
      Purchaser which is a partnership or corporation, the partners, retired partners
      and shareholders of such Purchaser, or the estates and family members of any
      such partners and retired partners and any trusts for the benefit of any of
      the
      foregoing persons, shall be deemed to be a single “Purchasers,” and any pro rata
      reduction with respect to such “Purchasers” shall be based upon the aggregate
      amount of shares carrying registration rights owned by all entities and
      individuals included in such “Purchasers,” as defined in this sentence.

    

    (c) Right
      to
      Terminate Registration.
      The
      Company shall have the right to terminate or withdraw any registration initiated
      by it under this Section 2 prior to the effectiveness of such registration
      whether or not any Purchaser has elected to include securities in such
      registration. The registration expenses of such withdrawn registration shall
      be
      borne by the Company in accordance with Section 3 hereof.

    

    (d) Agreement
      Not to Sell.
      Each
      Purchaser covenants and agrees that (i) it will not sell any Registrable
      Securities under the Registration Statement until it has received copies of
      the
      Prospectus as then amended or supplemented and notice from the Company that
      such
      Registration Statement and any post-effective amendments thereto have become
      effective and (ii) it and its officers, directors or Affiliates, if any, 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.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3. Registration
      Expenses.

    

    All
      fees
      and expenses incident to the performance of or compliance with this Agreement
      by
      the Company, except as and to the extent specified in this Section 3, 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 OTC Bulletin Board and each other
      securities exchange or market on which Registrable Securities are required
      hereunder to be listed, (B) with respect to filing fees required to be paid
      to
      the National Association of Securities Dealers, Inc. and the NASD Regulation,
      Inc. and (C) in compliance with state securities or Blue Sky laws (including,
      without limitation, fees and disbursements in connection with Blue Sky
      qualifications of the Registrable Securities and determination of the
      eligibility of the Registrable Securities for investment under the laws of
      such
      jurisdictions), (ii) printing expenses (including, without limitation, expenses
      of printing certificates for Registrable Securities and of printing
      prospectuses, if any, (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, the fees and expenses incurred in connection with the listing
      of the Registrable Securities on any securities exchange as required
      hereunder.

    

      4. Indemnification.

    

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Purchaser, the officers, directors, agents, brokers
      (including brokers who offer and sell Registrable Securities as principal as
      a
      result of a pledge or any failure to perform under a margin call of Common
      Stock), investment advisors and employees of each of them, each Person who
      controls any such Purchaser (within the meaning of Section 15 of the Securities
      Act or Section 20 of the Exchange Act) and the officers, directors, agents
      and
      employees of each such controlling Person, to the fullest extent permitted
      by
      applicable law, from and against any and all losses, claims, damages,
      liabilities, costs (including, without limitation, costs of preparation and
      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 (i)
      such untrue statements or 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

      omissions
        are based solely upon information regarding such Purchaser or such other
        Indemnified Party furnished in writing to the Company by such Purchaser
        expressly for use therein and (ii) that the foregoing indemnity agreement
        is
        subject to the condition that, insofar as it relates to any untrue statement,
        allegedly untrue statement, omission or alleged omission made in any preliminary
        prospectus but eliminated or remedied in the final prospectus (filed pursuant
        to
        Rule 424 of the Securities Act), such indemnity agreement shall not inure
        to the
        benefit of any Purchaser, underwriter, broker or other Person acting on behalf
        of holders of the Registrable Securities, from whom the Person asserting
        any
        loss, claim, damage, liability or expense purchased the Registrable Securities
        which are the subject thereof, if a copy of such final prospectus had been
        made
        available to such Person and such Purchaser, underwriter, broker or other
        Person
        acting on behalf of holders of the Registrable Securities and such final
        prospectus was not delivered to such Person with or prior to the written
        confirmation of the sale of such Registrable Securities to such Person. The
        Company shall notify the Purchasers promptly of the institution, threat or
        assertion of any Proceeding of which the Company is aware in connection with
        the
        transactions contemplated by this Agreement.

    

    

    (b) Indemnification
      by Purchasers.
      Each
      Purchaser shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents and employees
      of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses (as determined by a court of competent jurisdiction
      in a final judgment not subject to appeal or review), 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
      Purchasers or other Indemnifying Party to the Company specifically for inclusion
      in the Registration Statement or such Prospectus. Notwithstanding anything
      to
      the contrary contained herein, each Purchaser shall be liable under this Section
      4(b) for only that amount as does not exceed the net proceeds to such Purchaser
      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 shall 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 Party of its obligations or liabilities
      pursuant to this Agreement, except (and only) to the extent that it shall be
      finally determined by a court of competent jurisdiction (which determination
      is
      not subject to appeal or further review) that such failure shall have
      proximately and materially adversely prejudiced the Indemnifying
      Party.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    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 (which shall be reasonably acceptable to the Indemnifying Party)
      that
      a conflict of interest is likely to exist if the same counsel were to represent
      such Indemnified Party and the Indemnifying Party (in which case, if such
      Indemnified Party notifies the Indemnifying Party in writing that it elects
      to
      employ separate counsel at the expense of the Indemnifying Party, the
      Indemnifying Party shall not have the right to assume the defense thereof and
      such counsel shall be at the expense of the Indemnifying Party). 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 or delayed. 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.

    

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten (10) Business Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided,
      that the Indemnifying Party may require such Indemnified Party to undertake
      to
      reimburse all such fees and expenses to the extent it is finally judicially
      determined that such Indemnified Party is not entitled to indemnification
      hereunder).

    

    (d) Contribution.
      If a
      claim for indemnification under Section 4(a) or 4(b) is unavailable to an
      Indemnified Party because of a failure or refusal of a governmental authority
      to
      enforce such indemnification in accordance with its terms (by reason of public
      policy or otherwise), 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 benefits received by the Indemnifying Party
      on the one hand and the Indemnified Party on the other from the offering of
      the
      Notes and Warrants. If, but only if, the allocation provided by the foregoing
      sentence is not permitted by applicable law, the allocation of contribution
      shall be made in such proportion as is appropriate to reflect not only the
      relative benefits referred to in the foregoing sentence but also the relative
      fault, as applicable, 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 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    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 Section 4(c), any reasonable attorneys' or other
      reasonable fees or expenses 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.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 4(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. Notwithstanding anything to the contrary contained herein, the
      Purchasers shall be liable under this Section 4(d) for only that amount as
      does
      not exceed the net proceeds to such Purchasers as a result of the sale of
      Registrable Securities pursuant to such Registration Statement.

     

    5. Rule
      144.

    

    As
      long
      as any Purchaser owns any Warrant Shares, the Company covenants to 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. As long as any Purchaser
      owns any Warrant Shares, 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 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
      covenants that it will take such further action as any Purchaser may reasonably
      request in writing, all to the extent required from time to time to enable
      such
      Person to sell the Warrant Shares 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 relating to such
      sale
      pursuant to Rule 144. 

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    6. Miscellaneous.

    

    (a) Remedies.
      In the
      event of a breach by the Company or by a Purchaser, of any of their obligations
      under this Agreement, each Purchaser 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 Purchaser 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 and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall waive the
      defense that a remedy at law would be adequate.

    

    (b) No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has, as of the date hereof entered
      into
      and currently in effect, nor shall the Company or any of its subsidiaries,
      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 Purchasers in
      this Agreement or otherwise conflicts with the provisions hereof. 

    

    (c) No
      Piggyback on Registrations.
      Neither
      the Company nor any of its security holders (other than the Purchasers in such
      capacity pursuant hereto or as disclosed on Schedule
      2.1(c)
      of the
      Purchase Agreement) may include securities of the Company in the Registration
      Statement, and the Company shall not after the date hereof enter into any
      agreement providing such right to any of its securityholders, unless the right
      so granted is subject in all respects to the prior rights in full of the
      Purchasers set forth herein, and is not otherwise in conflict with the
      provisions of this Agreement.

    

    (d) 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 the Purchasers of a majority of the Registrable
      Securities outstanding.

    

    (e) 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 given and effective
      on the earlier of (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile telephone number specified for
      notice prior to 5:00 p.m., Pacific 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., Pacific Time, on any date and earlier than 11:59 p.m.,
      Pacific Time, on such date, (iii) the 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. The
      addresses for such communications shall be with respect to each Purchaser at
      its
      address set forth under its name on Schedule
      I
      attached
      hereto, or with respect to the Company, addressed to:

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Communication
      Intelligence Corporation

    275
      Shoreline Drive, Suite 500

    Redwood
      Shores, California 94065

    Attention:
      Frank Dane

    Tel.
      No.:
      (650) 802-7888

    Fax
      No.:
      (650) 802-7777

    

    

    with
      copies (which copies 

    shall
      not
      constitute notice 

    to
      the
      Company) to:  Davis
      Wright Tremaine LLP

    1300
      S.W.
      Fifth Ave., 23rd
      Floor

    Portland,
      Oregon 97201

    Attention:
      Michael C. Phillips, Esq.    

    Tel.
      No.:
      (503) 241-2300

    Fax
      No.:
      (503) 778-5299

    

    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 Purchasers shall be sent to their respective street
      or email addresses indicated in the attached Schedule I.

    

    (f) 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
      Purchaser and its successors and assigns. 

    

    (g) 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 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.

    

    (h) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of California, without giving effect to any of the conflicts
      of law principles which would result in the application of the substantive
      law
      of another jurisdiction. This Agreement shall not be interpreted or construed
      with any presumption against the party causing this Agreement to be
      drafted.

    

      (i) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (j) 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.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

      (h) 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.

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    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/ Frank Dane    
                                            

    Name:
      Frank Dane

    Title:
      Chief Financial and Legal Officer

     

    PURCHASER:
      

    

    

    By: 
      /s/ Michael
      Engmann                                     
 

    Name: 
      Michael Engmann

    Title:
      

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Schedule
      I

    List
      of Purchasers 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    12Form of Promissory Note

     

                                                                        
 Exhibit
      10.36

    FORM OF NOTE

     

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      "ACT"), OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED,
      OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY
      THE
      MAKER OF AN OPINION OF COUNSEL IN THE FORM, SUBSTANCE AND SCOPE REASONABLY
      SATISFACTORY TO THE MAKER THAT THIS NOTE MAY BE SOLD, TRANSFERRED, OR OTHERWISE
      DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND SUCH STATE
      SECURITIES LAWS.

    

    

    COMMUNICATION
      INTELLIGENCE CORPORATION

    

    Non-Negotiable
      Promissory Note

    due
      _____, 200x

    

    Dated:
      ____________, 2007$XXX

    

    For
      value
      received, Communication Intelligence Corporation, a Delaware corporation (the
      "Maker"),
      hereby promises to pay to the order of __________ (together with its successors,
      representatives, and permitted assigns, the "Holder"),
      in
      accordance with the terms hereinafter provided, the principal amount of up
      to
      _____________ Dollars ($_______), together with interest thereon. 

     

    1.  Payments.
      All
      payments under or pursuant to this Note shall be made in United States Dollars
      in immediately available funds to the Holder at
      such
      address as the Holder may designate from time to time in writing to the Maker
      (which shall initially be the address set forth for Maker in Section
      10)
      or by
      wire transfer of funds to the Holder's account, instructions for which are
      to be
      provided by Holder. The
      outstanding principal balance of this Note, plus all accrued but unpaid
      interest, shall be due and payable on ____________, 200X (the "Maturity Date")
      or at such earlier time as provided herein.

     

    2.   Note
      and Warrant Purchase Agreement.
      This
      Note has been executed and delivered pursuant to the Note and Warrant Purchase
      Agreement dated as of June 15, 2007 (the "Purchase
      Agreement”)
      by and
      between the Maker
      and the
      Holder. Capitalized terms used and not otherwise defined herein shall have
      the
      meanings set forth for such terms in the Purchase Agreement. 

     

    3.  -Interest;
      Payment of Interest. Beginning on the issuance date of this Note (the “Issuance
      Date”), the outstanding principal balance of this Note shall bear interest, in
      arrears, at a rate per annum equal to Fifteen Percent (15%). Interest shall
      be
      computed on the basis of a 360-day year of twelve (12) 30-day months and shall
      accrue commencing on the Issuance Date. Accrued
      interest shall be payable quarterly in arrears.

     

    4.  Transfer.
      This Note may not be transferred, sold, pledged, hypothecated or otherwise
      granted as security by the Holder.

     

    
      
        
        

      

      
        
           

        

        
          

        

      

      
        
        

      

    

    5.  -Replacement.
      Upon receipt of a duly executed, notarized and unsecured written statement
      from
      the Holder with respect to the loss, theft or destruction of this Note (or
      any
      replacement hereof), and without requiring an indemnity bond or other security,
      or, in the case of a mutilation of this Note, upon surrender and cancellation
      of
      such Note, the Maker shall issue a new Note, of like tenor and amount, in lieu
      of such lost, stolen, destroyed or mutilated Note.

     

    6.  -Events
      of Default; Remedies. The occurrence of any of the following events shall be
      an
      "Event of Default" under this Note:

     

    6.1.  the
      Maker
      shall fail to make the payment of any amount of principal outstanding on the
      Maturity Date hereunder; or

     

    6.2.  the
      Maker
      shall fail to make any payment of accrued interest when due hereunder;
      or

     

    6.3.  default
      shall be made in the performance or observance of any material covenant,
      condition or agreement contained in this Note or the Purchase Agreement and
      such
      default is not fully cured within ten (10) days after the occurrence thereof;
      or

     

    6.4.  any
      material representation or warranty made by the Maker herein or in the Purchase
      Agreement shall prove to have been false or incorrect or breached in a material
      respect on the date as of which made; or

     

    6.5.  the
      Maker
      shall (i) apply for or consent to the appointment of, or the taking of
      possession by, a receiver, custodian, trustee or liquidator of itself or of
      all
      or a substantial part of its property or assets, (ii) make a general assignment
      for the benefit of its creditors, (iii) commence a voluntary case under the
      United States Bankruptcy Code (as now or hereafter in effect) or under the
      comparable laws of any jurisdiction (foreign or domestic), (iv) file a petition
      seeking to take advantage of any bankruptcy, insolvency, moratorium,
      reorganization or other similar law affecting the enforcement of creditors'
      rights generally, (v) acquiesce in writing to any petition filed against it
      in
      an involuntary case under United States Bankruptcy Code (as now or hereafter
      in
      effect) or under the comparable laws of any jurisdiction (foreign or domestic),
      (vi) issue a notice of bankruptcy or winding down of its operations or issue
      a
      press release regarding same, or (vii) take any action under the laws of any
      jurisdiction (foreign or domestic) analogous to any of the foregoing; or

     

    6.6.  a
      proceeding or case shall be commenced in respect of the Maker, without its
      application or consent, in any court of competent jurisdiction, seeking (i)
      the
      liquidation, reorganization, moratorium, dissolution, winding up, or composition
      or readjustment of its debts, (ii) the appointment of a trustee, receiver,
      custodian, liquidator or the like of it or of all or any substantial part of
      its
      assets in connection with the liquidation or dissolution of the Maker or (iii)
      similar relief in respect of it under any law providing for the relief of
      debtors, and such proceeding or case described in clause (i), (ii) or (iii)
      shall continue undismissed, or unstayed and in effect, for a period of sixty
      (60) days or any order for relief shall be entered in an involuntary case under
      United States Bankruptcy Code (as now or hereafter in effect) or under the
      comparable laws of any jurisdiction (foreign or domestic) against the Maker
      or
      action under the laws of any jurisdiction (foreign or domestic) analogous to
      any
      of the foregoing shall be taken with respect to the Maker and shall continue
      undismissed, or unstayed and in effect for a period of sixty (60)
      days.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    7.  -Remedies
      Upon an Event of Default.
      If an
      Event of Default shall have occurred and shall be continuing, the Holder of
      this
      Note may at any time at its option declare the entire unpaid principal balance
      of this Note, together with all interest accrued thereon, due and payable,
      and
      thereupon, the same shall be accelerated and so due and payable, without
      presentment, demand, protest, or notice, all of which are hereby waived by
      the
      Maker. No course of delay on the part of the Holder shall operate as a waiver
      thereof or otherwise prejudice the right of the Holder. No remedy conferred
      hereby shall be exclusive of any other remedy referred to herein or now or
      hereafter available at law, in equity, by statute or otherwise.

     

    8.  Prepayment.
      Notwithstanding anything to the contrary contained herein, the Maker shall
      have
      the right, at such Maker's option, to prepay any amounts due hereunder,
      including the entire unpaid principal or any partial amount thereof and any
      accrued but unpaid interest, at any time prior to the Maturity Date, with no
      prepayment penalties. 

     

    9.  No
      Rights as Shareholder.
      Nothing
      contained in this Note shall be construed as conferring upon the Holder the
      right to vote or to receive dividends or to consent or to receive notice as
      a
      shareholder in respect of any meeting of shareholders for the election of
      directors of the Maker or of any other matter, or any other rights as a
      shareholder of the Maker.

    

    10.  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 given and effective
      on the earliest of (i) the business day following the date of mailing, if sent
      by U.S. nationally recognized overnight courier service, or (ii) upon actual
      receipt by the party to whom such notice is required to be given. The address
      for such notices and communications shall be as follows:

    

    If
      to the
      Maker:  Communication
      Intelligence Corporation

    275
      Shoreline Drive, Suite 500

    Redwood
      Shores, California 94065

    Attention:
      Frank Dane

    Tel.
      No.:
      (650) 802-7888

    Fax
      No.:
      (650) 802-7777

    with
      copies (which copies 

    shall
      not
      constitute notice 

    to
      Maker)
      to:    Davis
      Wright Tremaine LLP

    1300
      S.W.
      Fifth Ave., 23rd
      Floor

    Portland,
      Oregon 97201

    Attention:
      Michael C. Phillips, Esq.

    Tel.
      No.
      (503) 241-2300

    Fax
      No.:
      (503) 778-5299 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    If
      to the
      Holder: [Insert
      name, address, phone and fax number.

     

    

    With
      a
      copy to: [Insert
      name, address, phone and fax number]

    

    11.  Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the internal laws
      of
      the State of California, without giving effect to any of the conflicts of law
      principles which would result in the application of the substantive law of
      another jurisdiction. This Note shall not be interpreted or construed with
      any
      presumption against the party causing this Note to be drafted.

     

    12.  -Headings.
      Article and section headings in this Note are included herein for purposes
      of
      convenience of reference only and shall not constitute a part of this Note
      for
      any other purpose.

     

    13.  Remedies.
      The remedies provided in this Note shall be cumulative and in addition to all
      other remedies available under this Note, at law or in equity, and no remedy
      contained herein shall be deemed a waiver of compliance with the provisions
      giving rise to such remedy. 

     

    14.  -Assignment.
      Holder may not assign any of its rights or obligations under this Note without
      obtaining the prior written consent of Maker.

     

    15.  Amendments.
      This Note may not be modified or amended in any manner except in writing
      executed by the Maker and the Holder.

     

    16.  -Compliance
      with Securities Laws. The Holder of this Note acknowledges that this Note is
      being acquired solely for the Holder's own account and not as a nominee for
      any
      other party, and for investment, and that the Holder shall not offer, sell
      or
      otherwise dispose of this Note. This Note and any Note issued in substitution
      or
      replacement therefor shall be stamped or imprinted with a legend in
      substantially the following form:

     

    "THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      "ACT"), OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED
      IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE MAKER OF AN OPINION OF
      COUNSEL IN THE FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE MAKER
      THAT THIS NOTE MAY BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED
      OF,
      UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES
      LAWS."

    

    17.  Attorneys’
      Fees and Expenses.
      Each of
      the Maker and the Holder hereby agree that the prevailing party in any suit,
      action or proceeding arising out of or relating to this Note shall be entitled
      to reimbursement for reasonable legal fees (including reasonably incurred
      attorneys’ fees) and costs from the non-prevailing party.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    18.  -Parties
      in Interest. This Note shall be binding upon, inure to the benefit of, and
      be
      enforceable by the Maker, the Holder and their respective successors and
      permitted assigns.

     

    19.  -Failure
      or Indulgence Not Waiver. No failure or delay on the part of the Holder in
      the
      exercise of any power, right or privilege hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise of any such power, right
      or
      privilege preclude other or further exercise thereof or of any other right,
      power or privilege. 

     

    This
      Note
      has been delivered as of the date set forth at the top of the first page
      hereof.

    

    MAKER:

    COMMUNICATION
      INTELLIGENCE CORPORATION

    

    By:
      ______________________________

    Name:
      Frank Dane

    Its:
      Chief Financial and Legal Officer

    

     

    

     

     

     

     

     

     

     

    5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]