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  AND EXCHANGE COMMISSION</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
  DC 20549</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">FORM
  8-K</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
  REPORT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PURSUANT
  TO SECTION 13 OR 15(D) OF THE</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
  EXCHANGE ACT OF 1934</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
  of Report (Date of earliest event reported)&#160;&#160;June 5, 2008</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">Communication
  Intelligence Corporation</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
  Name of Registrant as Specified in its Charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Delaware</font></div>
              </td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td valign="top" width="24%">
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              </td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">94-2790442</font></div>
              </td>
            </tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
        or Other Jurisdiction</font></div>
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              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Commission
        File Number)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(I.R.S.
        Employer</font></div>
              </td>
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              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">of
        Incorporation)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td valign="top" width="24%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Identification
        No.)</font></div>
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            </tr>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">275
  Shoreline Drive, Suite 500</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Redwood
  Shores, CA 94065</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
  of Principal Executive Offices)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
  Code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(650)
  802-7888</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
  Telephone Number, Including Area Code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
  Applicable</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
  name or former address, if changed from last report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Check
  the appropriate box below if the Form 8-K filing is intended to simultaneously
  satisfy the filing obligation of the registrant under any of the following
  provisions (<font style="DISPLAY: inline; FONT-STYLE: italic">see </font>General
  Instruction A.2. below):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline;" face="Wingdings">o</font> Written communication
  pursuant to Rule&#160;425 under the Securities Act (17 CFR 230.425)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline;" face="Wingdings">o</font> Soliciting material
  pursuant to Rule&#160;14a-12 under the Exchange Act (17 CFR
  240.14a-12)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline;" face="Wingdings">o</font> Pre-commencement
  communications pursuant to Rule&#160;14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline;" face="Wingdings">o</font> Pre-commencement
  communications pursuant to Rule&#160;13e-4(c) under the Exchange Act (17 CFR
  240.13e-4c))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
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          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
  </font></div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
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        </div>
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  </font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
  1.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Entry
  into a Material Definitive Agreement</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
  1.02&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Termination
  of a Material Definitive Agreement</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
  2.03&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Creation
  of a Direct Financial Obligation or an Obligation under anOff- Balance Sheet
  Arrangement of a Registrant</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
  3.02&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Unregistered
  Sales of Equity Securities</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On June
  5, 2008, Communications Intelligence Corporation (the &#8220;Company&#8221;) executed
  documents and closed a financing transaction under which the Company raised
  capital through the issuance of new secured indebtedness and equity and
  restructured a portion of the Company&#8217;s existing debt (collectively, the
  &#8220;Financing Transaction&#8221;).</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
  Financing Transaction, the Company entered into a Credit Agreement (the &#8220;Credit
  Agreement&#8221;) and a Pledge and Security Agreement (the &#8220;Pledge Agreement&#8221;), each
  dated as of June 5, 2008, with Phoenix Venture Fund LLC (&#8220;Phoenix&#8221;), Michael
  Engmann and Ronald Goodman (collectively with Phoenix, the &#8220;Creditors,&#8221; and each
  individually a &#8220;Creditor&#8221;).&#160;&#160;As noted below, the Company has a
  pre-existing relationship with each Creditor.&#160;&#160;Under the terms of the
  Credit Agreement, the Company received an aggregate of three million dollars
  ($3,000,000) and refinanced $637,500 of existing indebtedness and accrued
  interest on that indebtedness (individually, a &#8220;Loan&#8221; and collectively, the
  &#8220;Loans&#8221;).&#160;&#160;The Loans, which are represented by secured promissory
  notes (each a &#8220;Note&#8221; and collectively, the &#8220;Notes&#8221;), bear interest at eight
  percent (8%) per annum which, at the option of the Company, may be paid in cash
  or in kind and mature two (2) years from issue date.&#160;&#160;The Company may
  use the proceeds from the Loans to pay the Company&#8217;s existing indebtedness and
  accrued interest on that indebtedness that was not exchanged for preferred stock
  as described below, for working capital and general corporate purposes, in each
  case in the ordinary course of business; and to pay fees and expenses in
  connection with the Financing Transaction, which are expected to be
  approximately $475,000.&#160;&#160;Additionally, a portion of the proceeds of
  the Loans will be used to repay a short term loan from a Company employee in the
  amount of $125,000, plus accrued interest of $611, that was made prior to and in
  anticipation of the closing of the financing.&#160;&#160;Under the terms of the
  Pledge Agreement, the Company and its subsidiary, CIC Acquisition Corp., granted
  the Creditors a first priority security interest in and lien upon the
  collateral, as set forth in the Pledge Agreement, and the Company granted to
  Creditors a pledge of all outstanding shares capital stock of CIC Acquisition
  Corp.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
  terms of the Credit Agreement and in partial consideration for the Creditors&#8217;
  respective Loans made pursuant to the terms of the Credit Agreement as described
  above, the Company issued to each Creditor a warrant to purchase up to the
  number of shares of the Company&#8217;s common stock (&#8220;Common Stock&#8221;) obtained by
  dividing the amount of such Creditor&#8217;s Loan by 0.14 (each a &#8220;Warrant&#8221; and
  collectively, the &#8216;Warrants&#8221;).&#160;&#160;A total of 25,982,143 shares of the
  Company&#8217;s Common Stock may be issued upon exercise of the
  Warrants.&#160;&#160;The warrants are exercisable beginning any time after the
  Company obtains stockholder approval to increase the number of authorized shares
  of Common Stock sufficient to allow exercise of all Warrants, until June 30,
  2011, with an exercise price of fourteen cents ($0.14) per share. Additional
  Warrants may be issued if the Company exercises its option to make interest
  payments on the Loans in kind.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
  connection with the closing of the Financing Transaction, the Company also
  entered into a Securities Purchase Agreement (the &#8220;Purchase Agreement&#8221;) and a
  Registration Rights Agreement (the &#8220;Registration Rights Agreement&#8221;) each dated
  as of June 5, 2008.&#160;&#160;Under the Purchase Agreement, in exchange for the
  cancellation of $995,000 in principal amount and $45,000 of interest accrued
  thereon of the Company&#8217;s aggregate outstanding $2.071 million in existing debt
  and interest accrued thereon through May&#160;31,&#160;2008, the Company issued
  to the holders of such debt (each an &#8220;Investor&#8221; and collectively, the
  &#8220;Investors&#8221;) an aggregate of<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>1,040,000 shares of the
  Company&#8217;s Series A Cumulative Convertible Preferred Stock (the &#8220;Preferred
  Shares&#8221;).&#160;&#160;The Preferred Shares carry an eight percent (8%) annual
  dividend, payable quarterly in arrears in cash or in additional Preferred
  Shares, have a liquidation preference over Common Stock of one dollar ($1.00)
  per share and are convertible into shares of Common Stock at the conversion
  price of fourteen cents ($0.14) per share.&#160;&#160;The shares of Preferred
  Stock are convertible any time after the Company obtains stockholder approval to
  increase the number of authorized shares of Common Stock sufficient to allow
  conversion of all shares of Preferred Stock.</font></div>
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  -</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
  Company intends to seek stockholder approval to increase the number of
  authorized shares of Common Stock sufficient to allow conversion of all shares
  of Preferred Stock and exercise of all Warrants at its annual meeting of
  stockholders to be held on June&#160;30,<font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;</font>2008.&#160;&#160;The
  Company&#8217;s proxy statement issued in connection with this meeting was mailed to
  stockholders on or about May&#160;27,&#160;2008.&#160;&#160;In the event that
  the stockholders do not approve the increase in the number of authorized shares
  of Common Stock as requested by the Company in the proxy statement, the Company
  will be required to make a rescission offer to the Investors, which, if
  accepted, will require the Company to redeem the Preferred Shares in exchange
  for a promissory note with identical terms to the original note exchanged for
  the Preferred Shares. In addition, it will be an event of default under the
  Credit Agreement, which would permit the Creditors to accelerate the
  Loans.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
  terms of the Registration Rights Agreement, the Company is obligated to prepare
  and file with the Securities and Exchange Commission (the &#8220;Commission&#8221;) a
  registration statement under the Securities Act of 1933, as amended (the
  Securities Act&#8221;) covering the resale of the shares of Common Stock issued upon
  conversion of the shares of Preferred Stock and exercise of the Warrants as
  described above.&#160;&#160;The Company must also use its reasonable best
  efforts to keep the registration statement continuously effective under the
  Securities Act until the earlier of the date that is two years after its
  Effective Date or until the date that all shares purchased under the Purchase
  Agreement have been sold or can be sold publicly under Rule 144.&#160;&#160;The
  Company is obligated to pay the costs and expenses of such
  registration.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The offer
  and sale of the Notes, Warrants and Preferred Shares as detailed above,
  including the Common Stock issuable upon exercise or conversion thereof, was
  made in reliance upon exemptions from registration afforded by Section 4(2) of
  the Securities Act and Rule 506 of Regulation D, as promulgated by the
  Commission under the Securities Act.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
  parties to the Financing Transactions have a pre-existing relationship with the
  Company and, with respect to such parties, the Financing Transactions may be
  considered related party transactions.&#160;&#160;In August 2007, the Company
  entered into a Securities Purchase and Registration Rights Agreement (the &#8220;2007
  Purchase Agreement&#8221;) and related agreements and documents with Phoenix Venture
  Fund LLC (&#8220;Purchaser&#8221;), one of the Creditors.&#160;&#160;Under the terms of that
  transaction, the Company issued 21,500,000 shares of the Company&#8217;s common stock
  at a price per share of approximately $0.14, for an aggregate purchase price of
  $3,000,000. An advisory fee of $250,000 was paid to the managing member of the
  Purchaser for services rendered in connection with the transaction. The Company
  was permitted under the terms of the 2007 Purchase Agreement to use up to
  $1,400,000 of the net proceeds to repay outstanding indebtedness.&#160;&#160;As
  of the date hereof, the Purchaser, directly or through one or more affiliate,
  owns 21,500,000 shares of Common Stock.&#160;&#160;Pursuant to the terms of the
  2007 Purchase Agreement, the Purchaser has the right to appoint two Board
  observers.&#160;&#160;Phillip Sassower, a principal of the Purchaser, has been
  appointed by the Purchaser as an observer.&#160;&#160;The Company is prohibited
  from selling or otherwise disposing of material properties, assets or rights of
  the Company without the consent of the Creditors holding a majority of the
  aggregate principal amount of the Loans, and the Purchaser by itself holds such
  an amount.&#160;&#160;In addition to the securities noted above, in connection
  with the Financing Transactions, the Purchaser received a fee of $100,000 and
  the Company paid approximately $225,000 in legal fees to Phoenix&#8217;s law
  firm.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
  Engmann, and certain of his affiliates, and Ronald Goodman each are holders of
  the Company&#8217;s debt. A portion of the debt held by Mr. Engmann, and all of the
  debt held by Mr. Engmann&#8217;s affiliates, including accrued and unpaid interest
  through May 31, 2008, was exchanged for Preferred Shares. The remainder of the
  debt held by Mr. Engmann, and all of the debt held by Mr. Goodman, including
  accrued and unpaid interest through May 31, 2008, was refinanced pursuant to the
  Credit Agreement, as described above.&#160;&#160;The debt being so exchanged or
  refinanced was originally issued in four transactions between August 2006 and
  June 2007 pursuant to certain Note and Warrant Purchase Agreements. The debt
  being so exchanged, and the related Note and Warrant Purchase Agreements, will
  be terminated in connection with the Financing Transactions.&#160;&#160;In
  addition to the debt held by Messrs. Engmann and Goodman, they hold warrants to
  acquire up to 7,938,098 shares in the aggregate.&#160;&#160;These warrants are
  exercisable until June 30, 2010 and include piggyback registration rights for
  the underlying shares to participate in certain future registrations of the
  Company&#8217;s common stock. In connection with the Financing Transactions, Mr.
  Engmann and Mr. Goodman each received Warrants as described above.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">-&#160;3
  -</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
  7.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Regulation
  FD Disclosure</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On June
  6, 2008 the Company issued a press release announcing closing of the Financing
  Transaction.&#160;&#160;A copy of the press release is furnished as Exhibit 99.1
  to this Current Report on Form 8-K and incorporated by reference herein. In
  accordance with General Instruction B.2 of Form 8-K, Exhibit 99.1 hereto shall
  not be deemed to be &#8220;filed&#8221; for purposes of Section 18 of the Securities
  Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), or otherwise subject to
  the liabilities of that section, and shall not be incorporated by reference into
  any registration statement or other document filed under the Securities Act or
  the Exchange Act, except as shall be expressly set forth by specific reference
  in such filing.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
  9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial
  Statements and Exhibits</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits</font></div>
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      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Pursuant
  to the requirements of the Securities Exchange Act of 1934, the registrant has
  duly caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
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        </font></td>
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        </font></td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="30%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
            </tr>
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              <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="30%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
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        </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="30%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:
        &#160;&#160;&#160;&#160;&#160;June 6, 2008</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" colspan="3" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Communication
        Intelligence Corporation</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="30%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
            </tr>
            <tr>
              <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
              </td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
        Frank Dane</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="30%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
            </tr>
            <tr>
              <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Frank
        Dane</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
        Financial and Legal Officer</font></div>
              </td>
            </tr>
        </table>
      </div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
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  </font></div>
        </div>
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        </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit&#160;Index</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
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              <td align="left" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="bottom" width="56%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
            </tr>
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              <td align="left" valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td valign="bottom" width="56%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Description</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
            </tr>
            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
        99.1</font></div>
              </td>
              <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
        </font></td>
              <td align="left" valign="top" width="56%">
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        Release dated June 6, 2008</font></div>
              </td>
            </tr>
        </table>
      </div>
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metadata_filer: {"company-data": {"conformed-name": "COMMUNICATION INTELLIGENCE CORP", "cik": "0000727634", "assigned-sic": "3577", "irs-number": "942790442", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-19301", "film-number": "08885570"}, "business-address": {"street1": "275 SHORELINE DR", "street2": "STE 500", "city": "REDWOOD SHORES", "state": "CA", "zip": "94065", "phone": "6508027888"}, "mail-address": {"street1": "275 SHORELINE DR", "street2": "STE 500", "city": "REDWOOD SHORES", "state": "CA", "zip": "94065"}}
text: phoenix8-k.htm
  SECURITIES
  AND EXCHANGE COMMISSION
  Washington,
  DC 20549
  FORM
  8-K
  CURRENT
  REPORT
  PURSUANT
  TO SECTION 13 OR 15(D) OF THE
  SECURITIES
  EXCHANGE ACT OF 1934
  Date
  of Report (Date of earliest event reported)  June 5, 2008
  Communication
  Intelligence Corporation
  (Exact
  Name of Registrant as Specified in its Charter)
  Delaware
  0-19301
  94-2790442
  (State
        or Other Jurisdiction
  (Commission
        File Number)
  (I.R.S.
        Employer
  of
        Incorporation)
  Identification
        No.)
  275
  Shoreline Drive, Suite 500
  Redwood
  Shores, CA 94065
  (Address
  of Principal Executive Offices)
  (Zip
  Code)
  (650)
  802-7888
  (Registrant's
  Telephone Number, Including Area Code)
  Not
  Applicable
  (Former
  name or former address, if changed from last report)
  Check
  the appropriate box below if the Form 8-K filing is intended to simultaneously
  satisfy the filing obligation of the registrant under any of the following
  provisions (
  see
  General
  Instruction A.2. below):
  o
  Written communication
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  o
  Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR
  240.14a-12)
  o
  Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))
  o
  Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4c))
  Item
  1.01                      Entry
  into a Material Definitive Agreement
  Item
  1.02                      Termination
  of a Material Definitive Agreement
  Item
  2.03                      Creation
  of a Direct Financial Obligation or an Obligation under anOff- Balance Sheet
  Arrangement of a Registrant
  Item
  3.02                      Unregistered
  Sales of Equity Securities
  On June
  5, 2008, Communications Intelligence Corporation (the "Company") executed
  documents and closed a financing transaction under which the Company raised
  capital through the issuance of new secured indebtedness and equity and
  restructured a portion of the Company's existing debt (collectively, the
  "Financing Transaction").
  Under the
  Financing Transaction, the Company entered into a Credit Agreement (the "Credit
  Agreement") and a Pledge and Security Agreement (the "Pledge Agreement"), each
  dated as of June 5, 2008, with Phoenix Venture Fund LLC ("Phoenix"), Michael
  Engmann and Ronald Goodman (collectively with Phoenix, the "Creditors," and each
  individually a "Creditor").  As noted below, the Company has a
  pre-existing relationship with each Creditor.  Under the terms of the
  Credit Agreement, the Company received an aggregate of three million dollars
  ($3,000,000) and refinanced $637,500 of existing indebtedness and accrued
  interest on that indebtedness (individually, a "Loan" and collectively, the
  "Loans").  The Loans, which are represented by secured promissory
  notes (each a "Note" and collectively, the "Notes"), bear interest at eight
  percent (8%) per annum which, at the option of the Company, may be paid in cash
  or in kind and mature two (2) years from issue date.  The Company may
  use the proceeds from the Loans to pay the Company's existing indebtedness and
  accrued interest on that indebtedness that was not exchanged for preferred stock
  as described below, for working capital and general corporate purposes, in each
  case in the ordinary course of business; and to pay fees and expenses in
  connection with the Financing Transaction, which are expected to be
  approximately $475,000.  Additionally, a portion of the proceeds of
  the Loans will be used to repay a short term loan from a Company employee in the
  amount of $125,000, plus accrued interest of $611, that was made prior to and in
  anticipation of the closing of the financing.  Under the terms of the
  Pledge Agreement, the Company and its subsidiary, CIC Acquisition Corp., granted
  the Creditors a first priority security interest in and lien upon the
  collateral, as set forth in the Pledge Agreement, and the Company granted to
  Creditors a pledge of all outstanding shares capital stock of CIC Acquisition
  Corp.
  Under the
  terms of the Credit Agreement and in partial consideration for the Creditors'
  respective Loans made pursuant to the terms of the Credit Agreement as described
  above, the Company issued to each Creditor a warrant to purchase up to the
  number of shares of the Company's common stock ("Common Stock") obtained by
  dividing the amount of such Creditor's Loan by 0.14 (each a "Warrant" and
  collectively, the 'Warrants").  A total of 25,982,143 shares of the
  Company's Common Stock may be issued upon exercise of the
  Warrants.  The warrants are exercisable beginning any time after the
  Company obtains stockholder approval to increase the number of authorized shares
  of Common Stock sufficient to allow exercise of all Warrants, until June 30,
  2011, with an exercise price of fourteen cents ($0.14) per share. Additional
  Warrants may be issued if the Company exercises its option to make interest
  payments on the Loans in kind.
  In
  connection with the closing of the Financing Transaction, the Company also
  entered into a Securities Purchase Agreement (the "Purchase Agreement") and a
  Registration Rights Agreement (the "Registration Rights Agreement") each dated
  as of June 5, 2008.  Under the Purchase Agreement, in exchange for the
  cancellation of $995,000 in principal amount and $45,000 of interest accrued
  thereon of the Company's aggregate outstanding $2.071 million in existing debt
  and interest accrued thereon through May 31, 2008, the Company issued
  to the holders of such debt (each an "Investor" and collectively, the
  "Investors") an aggregate of
  1,040,000 shares of the
  Company's Series A Cumulative Convertible Preferred Stock (the "Preferred
  Shares").  The Preferred Shares carry an eight percent (8%) annual
  dividend, payable quarterly in arrears in cash or in additional Preferred
  Shares, have a liquidation preference over Common Stock of one dollar ($1.00)
  per share and are convertible into shares of Common Stock at the conversion
  price of fourteen cents ($0.14) per share.  The shares of Preferred
  Stock are convertible any time after the Company obtains stockholder approval to
  increase the number of authorized shares of Common Stock sufficient to allow
  conversion of all shares of Preferred Stock.
  - 2
  -
  The
  Company intends to seek stockholder approval to increase the number of
  authorized shares of Common Stock sufficient to allow conversion of all shares
  of Preferred Stock and exercise of all Warrants at its annual meeting of
  stockholders to be held on June 30,
  2008.  The
  Company's proxy statement issued in connection with this meeting was mailed to
  stockholders on or about May 27, 2008.  In the event that
  the stockholders do not approve the increase in the number of authorized shares
  of Common Stock as requested by the Company in the proxy statement, the Company
  will be required to make a rescission offer to the Investors, which, if
  accepted, will require the Company to redeem the Preferred Shares in exchange
  for a promissory note with identical terms to the original note exchanged for
  the Preferred Shares. In addition, it will be an event of default under the
  Credit Agreement, which would permit the Creditors to accelerate the
  Loans.
  Under the
  terms of the Registration Rights Agreement, the Company is obligated to prepare
  and file with the Securities and Exchange Commission (the "Commission") a
  registration statement under the Securities Act of 1933, as amended (the
  Securities Act") covering the resale of the shares of Common Stock issued upon
  conversion of the shares of Preferred Stock and exercise of the Warrants as
  described above.  The Company must also use its reasonable best
  efforts to keep the registration statement continuously effective under the
  Securities Act until the earlier of the date that is two years after its
  Effective Date or until the date that all shares purchased under the Purchase
  Agreement have been sold or can be sold publicly under Rule 144.  The
  Company is obligated to pay the costs and expenses of such
  registration.
  The offer
  and sale of the Notes, Warrants and Preferred Shares as detailed above,
  including the Common Stock issuable upon exercise or conversion thereof, was
  made in reliance upon exemptions from registration afforded by Section 4(2) of
  the Securities Act and Rule 506 of Regulation D, as promulgated by the
  Commission under the Securities Act.
  Certain
  parties to the Financing Transactions have a pre-existing relationship with the
  Company and, with respect to such parties, the Financing Transactions may be
  considered related party transactions.  In August 2007, the Company
  entered into a Securities Purchase and Registration Rights Agreement (the "2007
  Purchase Agreement") and related agreements and documents with Phoenix Venture
  Fund LLC ("Purchaser"), one of the Creditors.  Under the terms of that
  transaction, the Company issued 21,500,000 shares of the Company's common stock
  at a price per share of approximately $0.14, for an aggregate purchase price of
  $3,000,000. An advisory fee of $250,000 was paid to the managing member of the
  Purchaser for services rendered in connection with the transaction. The Company
  was permitted under the terms of the 2007 Purchase Agreement to use up to
  $1,400,000 of the net proceeds to repay outstanding indebtedness.  As
  of the date hereof, the Purchaser, directly or through one or more affiliate,
  owns 21,500,000 shares of Common Stock.  Pursuant to the terms of the
  2007 Purchase Agreement, the Purchaser has the right to appoint two Board
  observers.  Phillip Sassower, a principal of the Purchaser, has been
  appointed by the Purchaser as an observer.  The Company is prohibited
  from selling or otherwise disposing of material properties, assets or rights of
  the Company without the consent of the Creditors holding a majority of the
  aggregate principal amount of the Loans, and the Purchaser by itself holds such
  an amount.  In addition to the securities noted above, in connection
  with the Financing Transactions, the Purchaser received a fee of $100,000 and
  the Company paid approximately $225,000 in legal fees to Phoenix's law
  firm.
  Michael
  Engmann, and certain of his affiliates, and Ronald Goodman each are holders of
  the Company's debt. A portion of the debt held by Mr. Engmann, and all of the
  debt held by Mr. Engmann's affiliates, including accrued and unpaid interest
  through May 31, 2008, was exchanged for Preferred Shares. The remainder of the
  debt held by Mr. Engmann, and all of the debt held by Mr. Goodman, including
  accrued and unpaid interest through May 31, 2008, was refinanced pursuant to the
  Credit Agreement, as described above.  The debt being so exchanged or
  refinanced was originally issued in four transactions between August 2006 and
  June 2007 pursuant to certain Note and Warrant Purchase Agreements. The debt
  being so exchanged, and the related Note and Warrant Purchase Agreements, will
  be terminated in connection with the Financing Transactions.  In
  addition to the debt held by Messrs. Engmann and Goodman, they hold warrants to
  acquire up to 7,938,098 shares in the aggregate.  These warrants are
  exercisable until June 30, 2010 and include piggyback registration rights for
  the underlying shares to participate in certain future registrations of the
  Company's common stock. In connection with the Financing Transactions, Mr.
  Engmann and Mr. Goodman each received Warrants as described above.
  - 3
  -
  Item
  7.01                      Regulation
  FD Disclosure
  On June
  6, 2008 the Company issued a press release announcing closing of the Financing
  Transaction.  A copy of the press release is furnished as Exhibit 99.1
  to this Current Report on Form 8-K and incorporated by reference herein. In
  accordance with General Instruction B.2 of Form 8-K, Exhibit 99.1 hereto shall
  not be deemed to be "filed" for purposes of Section 18 of the Securities
  Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
  the liabilities of that section, and shall not be incorporated by reference into
  any registration statement or other document filed under the Securities Act or
  the Exchange Act, except as shall be expressly set forth by specific reference
  in such filing.
  Item
  9.01                      Financial
  Statements and Exhibits
  (d)           Exhibits
  99.1           Press
  Release dated June 6, 2008.
  SIGNATURES
  Pursuant
  to the requirements of the Securities Exchange Act of 1934, the registrant has
  duly caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.
  Date:
             June 6, 2008
  Communication
        Intelligence Corporation
  By:
  /s/
        Frank Dane
  Frank
        Dane
  Chief
        Financial and Legal Officer
  - 4
  -
  Exhibit Index
  Exhibit
  Description
  Exhibit
        99.1
  Press
        Release dated June 6, 2008
  - 5 -