Document:

<PAGE>
                                                                     EXHIBIT 4.2

                     COMMUNICATION INTELLIGENCE CORPORATION
                             1999 STOCK OPTION PLAN

1. PURPOSE

    The purpose of this plan (the "Plan") is to secure for COMMUNICATION
INTELLIGENCE CORPORATION (the "Company") and its stockholders the benefits
arising from capital stock ownership by employees, officers, directors,
consultants and other service providers of the Company or an Affiliate (as that
term is defined in the Plan) who are expected to contribute to the Company's
future growth and success. The Plan is also designed to attract and retain other
persons who will provide services to the Company. Those provisions of the Plan
which make express reference to Section 422 of the Internal Revenue Code of
1986, as amended or replaced from time to time (the "Code"), shall apply only to
Incentive Stock Options (as that term is defined in the Plan).

2. TYPE OF OPTIONS AND ADMINISTRATION

    (a) TYPES OF OPTIONS. Options granted pursuant to the Plan shall be
authorized by action of the Board of Directors (the "Board") of the Company (or
the committee appointed by the Board in accordance with Section 2(b) below) and
may be either incentive stock options ("Incentive Stock Options") intended to
meet the requirements of Section 422 of the Code or non-statutory options which
are not intended to meet the requirements of Section 422 of the Code
("Non-Qualified Options").

    (b) ADMINISTRATION. The Plan will be administered by the Board or by a
committee consisting of two or more directors each of whom shall be a
"non-employee director," within the meaning of Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), or any
successor Rule ("Rule 16b-3"), and an "outside director", within the meaning of
Treasury Regulation Section 1.162-27(e)(3) promulgated under Section 162(m) of
the Code, (the "Committee") appointed by the Board, in each case whose
construction and interpretation of the terms and provisions of the Plan shall be
final, conclusive and binding upon the optionee and all other persons interested
or claiming interests under the Plan. If the Board determines to create a
Committee to administer the Plan, the delegation of powers to the Committee
shall be consistent with applicable laws or regulations (including, without
limitation, applicable state law and Rule 16b-3). The Board or the Committee may
in its sole discretion grant options to purchase shares of the Company's Common
Stock, $0.01 par value per share ("Common Stock"), and issue shares upon
exercise of such options as provided in the Plan. The Board or the Committee
shall have authority, subject to the express provisions of the Plan, to construe
the respective option agreements and the Plan; to prescribe, amend and rescind
rules and regulations relating to the Plan; to determine the terms and
provisions of the respective option agreements, which need not be identical; and
to make all other determinations in the judgment of the Board or the Committee
necessary or desirable for the administration of the Plan. The Board or the
Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any option agreement in the manner and to the
extent it shall deem expedient to carry the Plan into effect and it shall be the
sole and final judge of such expediency. No director or person acting pursuant
to authority delegated by the Board shall be liable for any action or
determination under the Plan made in good faith.

3. ELIGIBILITY

    Options may be granted to persons who are, at the time of grant, employees,
officers, directors, consultants or other service providers of the Company or
any parent or subsidiary of the Company as defined in Sections 424(e) and 424(f)
of the Code ("Affiliate"), provided that Incentive Stock Options may only be
granted to individuals who are employees (within the meaning of Section 3401(c)
of the Code) of the Company or any Affiliate. Options may also be granted to
other persons, provided that such options shall be Non-Qualified Options. A
person who has been granted an option may, if he or she is otherwise eligible,
be granted additional options if the Board or the Committee shall so determine.
Notwithstanding
<PAGE>
anything in the Plan to the contrary, no employee of the Company or an Affiliate
shall be granted options with respect to more than 2,000,000 shares of Common
Stock during any calendar year.

4. STOCK SUBJECT TO PLAN

    The stock subject to options granted under the Plan shall be shares of
authorized but unissued or reacquired Common Stock. Subject to adjustment as
provided in Section 15 below, the maximum number of shares of Common Stock of
the Company which may be issued and sold under the Plan is 2,000,000. If an
option granted under the Plan shall expire, terminate or is cancelled for any
reason without having been exercised in full, the unpurchased shares subject to
such option shall again be available for subsequent option grants under the
Plan.

5. FORMS OF OPTION AGREEMENTS

    As a condition to the grant of an option under the Plan, each recipient of
an option shall execute an option agreement in such form not inconsistent with
the Plan and as may be approved by the Board or the Committee. The terms of such
option agreements may differ among recipients.

6. PURCHASE PRICE

    (a) GENERAL. The purchase price per share of Common Stock issuable upon the
exercise of an option shall be determined by the Board or the Committee at the
time of grant of such option, provided, however, that such exercise price
(i) in the case of Incentive Stock Options, shall not be less than 100% of the
Fair Market Value (as hereinafter defined) of such Common Stock at the time of
grant of such option, and for Incentive Stock Options granted to a "10%
Shareholder" (as defined in Section 11(b)), shall not be less than 110% of such
Fair Market Value, and (ii) in the case of Non-Qualified Options, shall not be
less than 85% of such Fair Market Value. "Fair Market Value" of a share of
Common Stock of the Company as of a specified date for purposes of the Plan
shall mean the closing price of a share of the Common Stock on the principal
securities exchange (including but not limited to the Nasdaq SmallCap Market or
the Nasdaq National Market) on which such shares are traded on the day
immediately preceding the date as of which Fair Market Value is being
determined, or on the next preceding date on which such shares are traded if no
shares were traded on such immediately preceding day, or if the shares are not
traded on a securities exchange, Fair Market Value shall be deemed to be the
average of the high bid and low asked prices of the shares in the
over-the-counter market on the day immediately preceding the date as of which
Fair Market Value is being determined or on the next preceding date on which
such high bid and low asked prices were recorded. If the shares are not publicly
traded, Fair Market Value of a share of Common Stock (including, in the case of
any repurchase of shares, any distributions with respect thereto which would be
repurchased with the shares) shall be determined in good faith by the Board. In
no case shall Fair Market Value be determined with regard to restrictions other
than restrictions which, by their terms, will never lapse.

    (b) PAYMENT OF PURCHASE PRICE. Options granted under the Plan may provide
for the payment of the exercise price by delivery of cash or a check to the
order of the Company in an amount equal to the exercise price of such options,
or by any other means which the Board determines are consistent with the purpose
of the Plan and with applicable laws and regulations (including, without
limitation, the provisions of Rule 16b-3).

7. EXERCISE OPTION PERIOD

    Subject to earlier termination as provided in the Plan, each option and all
rights thereunder shall expire on such date as determined by the Board or the
Committee and set forth in the applicable option agreement, provided that such
date shall not be later than ten (10) years after the date on which the option
is granted, or as prescribed by Section 11(b) hereinbelow.

                                       2
<PAGE>
8. EXERCISE OF OPTIONS

    Each option granted under the Plan shall be exercisable either in full or in
installments at such time or times and during such period as shall be set forth
in the option agreement evidencing such option, subject to the provisions of the
Plan. Subject to the requirements in the immediately preceding sentence, if an
option is not at the time of grant immediately exercisable, the Board or the
Committee may (i) in the agreement evidencing such option, provide for the
acceleration of the exercise date or dates of the subject option upon the
occurrence of specified events and/or (ii) at any time prior to the complete
termination of an option, accelerate the exercise date or dates of such option.

9. NONTRANSFERABILITY OF OPTIONS

    No option granted under this Plan shall be assignable or otherwise
transferable by the optionee, except by will or by the laws of descent and
distribution. An option may be exercised during the lifetime of the optionee
only by the optionee.

10. EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP

    (a) Except as provided in Section 11(d) with respect to Incentive Stock
Options and except as may otherwise be determined by the Board or the Committee
at the date of grant of an option, and subject to the provisions of the Plan, an
optionee may exercise an option at any time within three (3) months following
the termination of the optionee's employment or other relationship with the
Company and its Affiliates or within one (1) year if such termination was due to
the death or disability (within the meaning of Section 22(e)(3) of the Code or
any successor provisions thereto) of the optionee (to the extent such option is
otherwise exercisable at the time of such termination) but in no event later
than the expiration date of the option.

    (b) Notwithstanding the foregoing and except as may otherwise be determined
by the Board or the Committee, if the termination of the optionee's employment
or other relationship with the Company and/or its Affiliate is for cause, the
option shall expire immediately upon such termination. The Board or the
Committee shall have the power to determine, in its sole discretion, what
constitutes a termination for cause, whether an optionee has been terminated for
cause, and the date upon which such termination for cause occurs. Any such
determinations shall be final and conclusive and binding upon the optionee and
all other persons interested or claiming interests under the Plan.

11. INCENTIVE STOCK OPTIONS

    Options granted under the Plan which are intended to be Incentive Stock
Options shall be subject to the following additional terms and conditions:

    (a) EXPRESS DESIGNATION. All Incentive Stock Options granted under the Plan
shall, at the time of grant, be specifically designated as such in the option
agreement covering such Incentive Stock Options.

    (b) 10% SHAREHOLDER. If any employee to whom an Incentive Stock Option is to
be granted under the Plan is, at the time of the grant of such option, the owner
of stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company (after taking into account the attribution of
stock ownership rules of Section 424(d) of the Code), then the following special
provisions shall be applicable to the Incentive Stock Option granted to such
individual:

        (i) the purchase price per share of the Common Stock subject to such
    Incentive Stock Option shall not be less than 110% of the Fair Market Value
    of one share of Common Stock at the time of grant; and

        (ii) the option exercise period shall not exceed five (5) years from the
    date of grant.

                                       3
<PAGE>
    (c) DOLLAR LIMITATION. For so long as the Code shall so provide, options
granted to any employee under the Plan (and any other incentive stock option
plans of the Company) which are intended to constitute Incentive Stock Options
shall not constitute Incentive Stock Options to the extent that such options, in
the aggregate, become exercisable for the first time in any one calendar year
for shares of Common Stock with an aggregate Fair Market Value, as of the
respective date or dates of grant, of more than $100,000.

    (d) TERMINATION OF EMPLOYMENT, DEATH OR DISABILITY. No Incentive Stock
Option may be exercised unless, at the time of such exercise, the optionee is,
and has been continuously since the date of grant of his or her option, employed
by the Company or an Affiliate, except that:

        (i) an Incentive Stock Option may be exercised within the period of
    three (3) months after the date the optionee ceases to be an employee of the
    Company or an Affiliate (or within such lesser period as may be specified in
    the applicable option agreement), to the extent it is otherwise exercisable
    at the time of such cessation,

        (ii) if the optionee dies while in the employ of the Company or an
    Affiliate, or within three (3) months after the optionee ceases to be such
    an employee, the Incentive Stock Option may be exercised by the person to
    whom it is transferred by will or the laws of descent and distribution
    within the period of one (1) year after the date of death (or within such
    lesser period as may be specified in the applicable option agreement), to
    the extent it is otherwise exercisable at the time of the optionee's death,
    and

        (iii) if the optionee becomes disabled (within the meaning of
    Section 22(e)(3) of the Code or any successor provisions thereto) while in
    the employ of the Company or an Affiliate, the Incentive Stock Option may be
    exercised within the period of one (1) year after the date the optionee
    ceases to be such an employee because of such disability (or within such
    lesser period as may be specified in the applicable option agreement), to
    the extent it is otherwise exercisable at the time of such cessation.

For all purposes of the Plan and any option granted hereunder, "employment"
shall be defined in accordance with the provisions of Section 1.421-7(h) of the
Income Tax Regulations (or any successor regulations). Notwithstanding the
foregoing provisions, no Incentive Stock Option may be exercised after its
expiration date.

12. ADDITIONAL PROVISIONS

    (a) ADDITIONAL OPTION PROVISIONS. The Board or the Committee may, in its
sole discretion, include additional provisions in option agreements covering
options granted under the Plan, including without limitation, restrictions on
transfer, repurchase rights, rights of first refusal, commitments to pay cash
bonuses or to make, arrange for or guaranty loans or to transfer other property
to optionees upon exercise of options, or such other provisions as shall be
determined by the Board or the Committee, provided that such additional
provisions shall not be inconsistent with the requirements of applicable law and
such additional provisions shall not cause any Incentive Stock Option granted
under the Plan to fail to qualify as an Incentive Stock Option within the
meaning of Section 422 of the Code.

    (b) ACCELERATION, EXTENSION, ETC. The Board or the Committee may, in its
sole discretion (i) accelerate the date or dates on which all or any particular
option or options granted under the Plan may be exercised, or (ii) extend the
dates during which all, or any particular, option or options granted under the
Plan may be exercised, provided, however, that no such acceleration or extension
shall be permitted if it would (i) cause any Incentive Stock Option granted
under the Plan to fail to qualify as an Incentive Stock Option within the
meaning of Section 422 of the Code, or (ii) cause the Plan or any option granted
under the Plan to fail to comply with Rule 16b-3 (if applicable to the Plan or
such option).

                                       4
<PAGE>
13. GENERAL RESTRICTIONS

    (a) INVESTMENT REPRESENTATIONS. The Board or the Committee may require any
person to whom an option is granted, as a condition of exercising such option or
award, to give written assurances in substance and form satisfactory to the
Board or the Committee to the effect that such person is acquiring the Common
Stock subject to the option or award for his or her own account for investment
and not with any present intention of selling or otherwise distributing the
same, and to such other effects as the Board or the Committee deems necessary or
appropriate in order to comply with applicable federal and state securities
laws, or with covenants or representations made by the Company in connection
with any public offering of its Common Stock, including any "lock-up" or other
restriction on transferability.

    (b) COMPLIANCE WITH SECURITIES LAW. Each option shall be subject to the
requirement that if, at any time, counsel to the Company shall determine that
the listing, registration or qualification of the shares subject to such option
or award upon any securities exchange or automated quotation system or under any
state or federal law, or the consent or approval of any governmental or
regulatory body, or that the disclosure of non-public information or the
satisfaction of any other condition, is necessary as a condition of, or in
connection with the issuance or purchase of shares thereunder, except to the
extent expressly permitted by the Board, such option or award may not be
exercised, in whole or in part, unless such listing, registration,
qualification, consent or approval or satisfaction of such condition shall have
been effected or obtained on conditions acceptable to the Board or the
Committee. Nothing herein shall be deemed to require the Company to apply for or
to obtain such listing, registration, qualification, consent or approval, or to
satisfy such condition. In addition, Common Stock issued upon the exercise of
options may bear such legends as the Company may deem advisable to reflect
restrictions which may be imposed by law, including, without limitation, the
Securities Act of 1933, as amended, any state "blue sky" or other applicable
federal or state securities law.

14. RIGHTS AS A STOCKHOLDER

    The holder of an option shall have no rights as a stockholder with respect
to any shares covered by the option (including, without limitation, any right to
vote or to receive dividends or non-cash distributions with respect to such
shares) until the effective date of exercise of such option and then only to the
extent of the shares of Common Stock so purchased. No adjustment shall be made
for dividends or other rights for which the record date is prior to the date of
exercise.

15. ADJUSTMENT PROVISIONS FOR RECAPITALIZATIONS, REORGANIZATIONS AND RELATED
    TRANSACTIONS

    (a) RECAPITALIZATIONS AND RELATED TRANSACTIONS. If, through or as a result
of any recapitalization, reclassification, stock dividend, stock split, reverse
stock split or other similar transaction (i) the outstanding shares of Common
Stock are increased, decreased or exchanged for a different number or kind of
shares or other securities of the Company, or (ii) additional shares or new or
different shares or other non-cash assets are distributed with respect to such
shares of Common Stock or other securities, an appropriate and proportionate
adjustment shall be made in (x) the maximum number and kind of shares reserved
for issuance under or otherwise referred to in the Plan, (y) the number and kind
of shares or other securities subject to any then-outstanding options under the
Plan, and (z) the price for each share subject to any then-outstanding options
under the Plan, without changing the aggregate purchase price as to which such
options remain exercisable. Notwithstanding the foregoing, no adjustment shall
be made pursuant to this Section 15 if such adjustment (A) would cause any
Incentive Stock Option granted under the Plan to fail to qualify as an Incentive
Stock Option within the meaning of Section 422 of the Code, (B) would cause the
Plan or any option granted under the Plan to fail to comply with Rule 16b-3 (if
applicable to the Plan or such option), or (C) would be considered as the
adoption of a new plan requiring stockholder approval.

                                       5
<PAGE>
    (b) BOARD AUTHORITY TO MAKE ADJUSTMENTS. Any adjustments under this
Section 15 will be made by the Board or the Committee, whose determination as to
what adjustments, if any, will be made and the extent thereof will be final,
binding and conclusive. No fractional shares will be issued under the Plan on
account of any such adjustments.

16. NO EMPLOYMENT RIGHTS

    Nothing contained in the Plan or in any option agreement shall confer upon
any optionee any right with respect to the continuation of his or her employment
or other relationship with the Company or an Affiliate or interfere in any way
with the right of the Company or an Affiliate at any time to terminate such
employment or relationship or to increase or decrease the compensation of the
optionee.

17. AMENDMENT, MODIFICATION OR TERMINATION OF THE PLAN

    (a) The Board may at any time modify, amend or terminate the Plan, provided
that to the extent required by applicable law, any such modification, amendment
or termination shall be subject to the approval of the stockholders of the
Company.

    (b) The modification, amendment or termination of the Plan shall not,
without the consent of an optionee, affect his or her rights under an option
previously granted to him or her. With the consent of the optionee affected, the
Board or the Committee may amend or modify outstanding option agreements in a
manner not inconsistent with the Plan. Notwithstanding the foregoing, the Board
shall have the right (but not the obligation), without the consent of the
optionee affected, to amend or modify (i) the terms and provisions of the Plan
and of any outstanding Incentive Stock Option agreements to the extent necessary
to qualify any or all such options for such favorable federal income tax
treatment (including deferral of taxation upon exercise) as may be afforded
incentive stock options under Section 422 of the Code, (ii) the terms and
provisions of the Plan and the option agreements entered into in connection with
any outstanding options to the extent necessary to ensure the qualification of
the Plan and such options under Rule 16b-3 (if applicable to the Plan and such
options), and (iii) the terms and provisions of the Plan and the option
agreements entered into in connection with any outstanding options to the extent
that the Board determines necessary to preserve the deduction of compensation
paid to certain optionees who are "covered employees," within the meaning of
Treasury Regulation Section 1.162-27(c)(2), as a result of the grant or exercise
of options under the Plan.

18. WITHHOLDING

    (a) The Company shall have the right to deduct and withhold from payments or
distributions of any kind otherwise due to the optionee any federal, state or
local taxes of any kind required by law to be so deducted and withheld with
respect to any shares issued upon exercise of options under the Plan. Subject to
the prior approval of the Company, which may be withheld by the Company in its
sole discretion, the optionee may elect to satisfy such obligations, in whole or
in part by (i) causing the Company to withhold shares of Common Stock otherwise
issuable pursuant to the exercise of an option, (ii) delivering to the Company
shares of Common Stock already owned by the optionee, or (iii) delivering to the
Company cash or a check to the order of the Company in an amount equal to the
amount required to be so deducted and withheld. The shares delivered in
accordance with method (ii) above or withheld in accordance with method
(i) above shall have a Fair Market Value equal to such withholding obligation as
of the date that the amount of tax to be withheld is to be determined. An
optionee who has made (with the Company's approval) an election pursuant to
method (i) or (ii) of this Section 18(a) may only satisfy his or her withholding
obligation with shares of Common Stock which are not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements.

    (b) The acceptance of shares of Common Stock upon exercise of an Incentive
Stock Option shall constitute an agreement by the optionee (i) to notify the
Company if any or all of such shares are disposed

                                       6
<PAGE>
of by the optionee within two (2) years from the date the option was granted or
within one (1) year from the date the shares were issued to the optionee
pursuant to the exercise of the option, and (ii) if required by law, to remit to
the Company, at the time of and in the case of any such disposition, an amount
sufficient to satisfy the Company's federal, state and local withholding tax
obligations with respect to such disposition, whether or not, as to both
(i) and (ii), the optionee is in the employ of the Company or an Affiliate at
the time of such disposition.

19. CANCELLATION AND NEW GRANT OF OPTIONS, ETC.

    The Board or the Committee shall have the authority to effect, at any time
and from time to time, with the consent of the affected optionee(s) the
(i) cancellation of any or all outstanding options under the Plan and the grant
in substitution therefor of new options under the Plan (or any successor stock
option plan of the Company) covering the same or different numbers of shares of
Common Stock and having an option exercise price per share which may be lower or
higher than the exercise price per share of the cancelled options, or
(ii) amendment of the terms of the option agreements entered into in connection
with any and all outstanding options under the Plan to provide an option
exercise price per share which is higher or lower than the then-current exercise
price per share of such outstanding options.

20. EFFECTIVE DATE AND DURATION OF THE PLAN

    (a) EFFECTIVE DATE. The Plan shall become effective when adopted by the
Board, but no Incentive Stock Option granted under the Plan shall become
exercisable unless and until the Plan shall have been approved by the Company's
stockholders. If such stockholder approval is not obtained within twelve
(12) months after the date of the Board's adoption of the Plan, no options
previously granted under the Plan shall be deemed to be Incentive Stock Options
and no Incentive Stock Options shall be granted thereafter. Amendments to the
Plan shall become effective as of the latest of (i) the date of adoption by the
Board, (ii) the date set forth in the amendments or (iii) in the case of any
amendment requiring stockholder approval (as set forth in Section 17), the date
such amendment is approved by the Company's stockholders. Notwithstanding the
foregoing, no Incentive Stock Option granted on or after the effective date of
such amendment shall become exercisable unless and until such amendment shall
have been approved by the Company's stockholders. If such stockholder approval
is not obtained within twelve (12) months of the Board's adoption of such
amendment, no options granted on or after the effective date of such amendment
shall be deemed Incentive Stock Options and no Incentive Stock Options shall be
granted thereafter. Subject to above limitations, options may be granted under
the Plan at any time after the effective date of the Plan and before the date
fixed for termination of the Plan.

    (b) TERMINATION. Unless sooner terminated by the Board, the Plan shall
terminate upon the close of business on the day next preceding the tenth
anniversary of the date of its adoption by the Board. After termination of the
Plan, no further options may be granted under the Plan; provided, however, that
such termination will not affect any options granted prior to termination of the
Plan.

21. GOVERNING LAW

    The provisions of this Plan shall be governed and construed in accordance
with the laws of the State of California without regard to the principles
thereof relating to the conflicts of laws.

22. PROVISION OF INFORMATION TO AWARD RECIPIENTS

    The Company shall annually provide each holder of an Award with the
information required by Section 260.140.46 of the Regulations of the California
Commissioner of Corporations.

                                       7<PAGE>
                                                                     EXHIBIT 4.3

                     COMMUNICATION INTELLIGENCE CORPORATION
                         FORM OF STOCK OPTION AGREEMENT

    1.  GRANT OF OPTION.  Subject to the terms, definitions and provisions
contained herein, Communication Intelligence Corporation (the "Company"), hereby
grants to:
Optionee's Name:
Option to purchase Common Stock of the Company as follows:

        Date of Grant:
       Exercise Price Per Share:
       Total Number of Shares Granted:
       Type of Option:
       Expiration Date:

    TERMINATION PERIOD. This Option may be exercised for ninety days after
    separation from the Company except as set out in Sections 7 and 8 of this
    Option Agreement (but in no event later than the Expiration Date).

    2.  EXERCISE OF OPTION.  This Option shall be exercisable in whole or in
part during its term in accordance with the following Vesting Schedule:

   PLEASE SEE THE STOCK OPTION VESTING SCHEDULE ATTACHED HERETO AS EXHIBIT B

        (i) RIGHT TO EXERCISE.

           (a) This Option may not be exercised for a fraction of a share.

           (b) In the event of Optionee's death, disability or other separation
       from the Company, the exercisability of the Option is governed by
       Sections 6, 7 and 8 below, subject to the limitation contained in
       subsection 2(i)(c).

           (c) In no event may this Option be exercised after the date of
       expiration of the term of this Option as set forth herein.

        (ii) METHOD OF EXERCISE. This Option shall be exercisable by written
    notice delivered to the Secretary of the Company (in the form attached as
    Exhibit A) which shall state the election to exercise the Option, the number
    of Shares in respect of which the Option is being exercised, and such other
    representations and agreements as to the holder's investment intent with
    respect to such shares of Common Stock as may be reasonably required by the
    Company. Such written notice shall be signed by the Optionee and shall be
    delivered in person or by certified mail to the Secretary of the Company.
    The written notice shall be accompanied by payment of the Exercise Price
    pursuant to Section 3 hereof. This Option shall be deemed to be exercised
    upon receipt by the Company of such written notice accompanied by the
    Exercise Price.

    3.  METHOD OF PAYMENT.  Payment of the Exercise Price shall be by check or
delivery of shares of the Company's Common Stock then owned by the Optionee.
Payment may also be made by delivering a properly executed exercise notice to
the Company together with a copy of irrevocable instructions to a broker to
deliver promptly to the Company the amount of sale or loan proceeds to pay the
exercise price.

    4.  RESTRICTIONS ON EXERCISE AND TRADABILITY OF UNDERLYING SHARES.  This
Option may not be exercised if the issuance of such Shares upon such exercise or
the method of payment or consideration for such shares would constitute a
violation of any applicable federal or state securities or other law or
regulation, including any rule under Part 207 of Title 12 of the Code of Federal
Regulations ("Regulation G") as promulgated by the Federal Reserve Board. The
underlying shares to be issued pursuant to this option have not been registered
with the Securities and Exchange Commission and will be subject to trading
restrictions upon issuance.
<PAGE>
    5.  TERMINATION OF RELATIONSHIP.  Should Optionee cease to be an employee or
director, Optionee may, to the extent otherwise so entitled at the date of such
termination (the "Termination Date"), exercise this Option during the
Termination Period set out in Section 1 of this Option. To the extent that
Optionee was not entitled to exercise this Option at the date of such
termination, or if Optionee does not exercise this Option within the time
specified herein, the Option shall terminate.

    6.  DISABILITY OF OPTIONEE.  Notwithstanding the provisions of Section 6
above, in the event of termination of Optionee's status as an employee or a
member of the Board of Directors as a result of total and permanent disability
(as defined in Section 22(e)(3) of the Internal Revenue Code), Optionee may, but
only within twelve (12) months from the date of separation from the Board of
Directors or if separation is due to disability which is not total and
permanent, then within six (6) months of such separation (but in no event later
than the date of expiration of the term of this Option as set forth in
Section 10 below), exercise the Option to the extent otherwise so entitled at
the date of such termination. To the extent that Optionee was not entitled to
exercise the Option at the date of termination, or if Optionee does not exercise
such Option (to the extent otherwise so entitled) within the time specified
herein, the Option shall terminate.

    7.  DEATH OF OPTIONEE.  In the event of the death of Optionee, the Option
may be exercised at any time within twelve (12) months following the date of
death (but in no event later than the date of expiration of the term of this
Option as set forth in Section 10 below), by Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent the Optionee could exercise the Option at the date of death.

    8.  NON-TRANSFERABILITY OF OPTION.  This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by him. The terms of this
Option shall be binding upon the executors, administrators, heirs, successors
and assigns of the Optionee.

    9.  TERM OF OPTION.  This Option may be exercised only within the term set
out in Section 1 of this Option, and may be exercised during such term only in
accordance with the terms of this Option.

    10.  TAX CONSEQUENCES.  OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE
EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

    11.  ADJUSTMENT UPON CHANGES IN CAPITALIZATION.  In the event of any change
in the number of shares of the outstanding common stock of the Company as a
consequence of a stock split, stock dividend, combination or reclassification of
shares, recapitalization, merger or similar event, the number of shares
underlying this Option and the related exercise price shall be adjusted
proportionately.

    Optionee hereby accepts this Option subject to all of the terms and
provisions hereof. Optionee has reviewed this Option in its entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option and
fully understands all provisions of the Option. Optionee hereby agrees to accept
as binding, conclusive and final, all decisions or interpretations of the Board
of Directors or duly appointed or elected committee thereof upon any questions
arising under this option.

<TABLE>
<CAPTION>
                                                            COMMUNICATION INTELLIGENCE
                 ACCEPTED:                                         CORPORATION
<S>                                                <C>
                  Optionee                                     By: Guido DiGregorio

                                                                    President
                  Address                                             Title

            City        State        Zip
</TABLE>

                                       2
<PAGE>
                                   EXHIBIT A
                     COMMUNICATION INTELLIGENCE CORPORATION
                          STOCK OPTION EXERCISE NOTICE

    The undersigned is the holder of an option and wishes to exercise that
option to purchase common stock of Communication Intelligence Corporation as
follows:

<TABLE>
<S>                          <C>
Number of Shares:
                             ----

Exercise Price:
                             ----

Total Purchase Price:
                             ----
</TABLE>

    This Exercise Notice together with payment is to be delivered, either in
person or by certified mail to:

                          The Secretary
                          Communication Intelligence Corporation
                          275 Shoreline Drive, Suite 500
                          Redwood Shores, CA 94065

-------------------------------------------
Dated
-------------------------------------------
Signature
-------------------------------------------
Typed or Printed Name

Please mail my common stock certificate to the address listed below:

               --------------------------------------------------
               --------------------------------------------------
               --------------------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]