Document:

<PAGE>

Exhibit 10.3

                          REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of September 28,
                                          ---------
2001, is made and entered into by and between Dauphin Technology, Inc., an
Illinois corporation (the "Company"), and Crescent International Ltd., an entity
                           -------
organized and existing under the laws of Bermuda (the "Investor").
                                                       --------

WHEREAS, the Company and the Investor have entered into that certain Securities
Purchase Agreement, dated as of September 28, 2001, as amended by Amendment to
Securities Purchase Agreement, dated as of September 28, 2001 (the "Securities
                                                                    ----------
Purchase Agreement"), pursuant to which the Company will issue, from time to
------------------
time, to the Investor and the Investor shall purchase up to $10,000,000 worth of
securities of the Company including (i) common stock, par value $0.001 per
share, of the Company (the "Common Stock"), (ii) a convertible note in the
                            ------------
principal amount of $2,500,000 (the "Initial Convertible Note"), and (iii)
                                     ------------------------
Subsequent Convertible Notes (as defined in the Securities Purchase Agreement).

WHEREAS, pursuant to the terms of and in partial consideration for the Investor
entering into the Securities Purchase Agreement, the Company is required to
issue to the Investor (i) an initial incentive warrant, exercisable from time to
time within five years following the date of issuance (the "Initial Incentive
                                                            -----------------
Warrant") for the purchase of a number of shares of Common Stock at a price to
-------
be determined as described in such Initial Incentive Warrant, and (ii) under
certain circumstances, a subsequent incentive warrant, exercisable from time to
time within five years following the date of issuance (the "Subsequent Incentive
                                                            --------------------
Warrant and, together with the Initial Incentive Warrant, the Incentive
-------                                                       ---------
Warrants") for the purchase of a number of shares of Common Stock at a price to
--------
be determined as described in such Subsequent Incentive Warrant;

WHEREAS, pursuant to the terms of and in partial consideration for the Investor
entering into the Securities Purchase Agreement, the Company may be required to
issue protective warrants to the Investor, each of which may become exercisable
from time to time as described in such warrants and in the Securities Purchase
Agreement (collectively, the "Protective Warrants" and together with the
Incentive Warrants and any new or replacement warrants issued in accordance with
the terms of the Protective Warrants and the Incentive Warrants, the "Warrants")
for the purchase of a number of shares of Common Stock at a price to be
determined as described in each such Protective Warrant;

WHEREAS, pursuant to the terms of, and in partial consideration for, the
Investor's agreement to enter into the Securities Purchase Agreement, the
Company has agreed to provide the Investor with certain registration rights as
described herein;

NOW, THEREFORE, in consideration of the premises, the representations,
warranties, covenants and agreements contained herein, in the Warrants, in the
Convertible Notes and in the Securities Purchase Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, intending to be legally bound hereby, the parties hereto agree as
follows (capitalized terms used herein and not defined herein shall have the
respective meanings ascribed to them in the Securities Purchase Agreement):

<PAGE>

                                    ARTICLE I
                               REGISTRATION RIGHTS

Section 1.1 REGISTRATION STATEMENTS.

          (a)  Filing of Registration Statements. The Company shall register for
               ---------------------------------
          resale all Commitment Shares issued or issuable to the Investor
          pursuant to the Securities Purchase Agreement and the Convertible
          Notes and all Warrant Shares issued or issuable upon full exercise of
          the Warrants. Subject to the terms and conditions of this Agreement,
          the Company shall effect such registration in the manner provided
          below:

               (i)  First Registration Statement. On or before the end of the 20
                    ----------------------------
               calendar day period immediately following the Subscription Date,
               the Company shall file with the SEC a registration statement (the
               "First Registration Statement") on Form S-3 if such form is then
                ----------------------------
               available to the Company and, if not, on such form promulgated by
               the SEC for which the Company qualifies, that counsel for the
               Company shall deem appropriate and which form shall be available
               for the sale of all Note Conversion Shares into which the Initial
               Convertible Note may be converted and the Incentive Warrant
               Shares relating to the Initial Incentive Warrant in accordance
               with the intended method of distribution of such securities. The
               aggregate number of shares of Common Stock to be registered under
               the First Registration Statement shall be 4,000,000;

               (ii) Subsequent Registration Statements.
                    -----------------------------------

                        (1)If the Company elects to exercise its right with
                        respect to any Subsequent Sale for which the Sale Shares
                        (or, in the case of a Subsequent Note Sale, the
                        applicable Note Conversion Shares), on the applicable
                        Closing Date, have not been previously registered and
                        are not covered by an effective Registration Statement
                        filed with the SEC which is not a Failed Registration
                        Statement (as hereinafter defined) (an "Unregistered
                                                                ------------
                        Sale"), then on or before the end of a 20 calendar day
                        ----
                        period immediately following each Closing Date relating
                        to each such Subsequent Sale, the Company shall file
                        with the SEC a registration statement (each a
                        "Subsequent Registration Statement," and together with
                         ---------------------------------
                        the First Registration Statement and any other
                        registration statement covering Registrable Securities
                        or otherwise required to be filed by the Company with
                        the SEC as provided in this Agreement, the "Registration
                                                                    ------------
                        Statements" or each, a "Registration Statement") on Form
                        ----------              ----------------------
                        S-3 if such form is then available to the Company and,
                        if not, on such form promulgated by the SEC for which
                        the Company qualifies, that counsel for the Company
                        shall

<PAGE>

                        deem appropriate and which form shall be available for
                        the sale of the Sale Shares purchased by the Investor or
                        the Note Conversion Shares into which the applicable
                        Subsequent Convertible Note may be converted and any
                        Commitment Shares and Warrant Shares that have not been
                        previously registered, in accordance with the intended
                        method of distribution of such securities. The aggregate
                        number of shares to be registered under each Subsequent
                        Registration Statement shall be equal to (w) with
                        respect to a Subsequent Share Sale, the number of Sale
                        Shares purchased by the Investor on the applicable
                        Closing Date or, with respect to a Subsequent Note Sale,
                        the number of Note Conversion Shares into which the
                        applicable Subsequent Convertible Note may be converted
                        assuming a conversion price of $0.75, plus (x) a number
                        of Protective Warrant Shares equal to the number of Sale
                        Shares purchased by the Investor on the applicable
                        Closing Date plus (y) with respect to any prior
                        Convertible Notes and any previous Subsequent Share
                        Sales, any Commitment Shares not previously registered
                        plus (z) any Warrant Shares not previously registered;

                        (2)Prior to any Subsequent Sale which is not an
                        Unregistered Sale, the Company shall file with the SEC a
                        Registration Statement on Form S-3 if such form is then
                        available to the Company and, if not, on such form
                        promulgated by the SEC for which the Company qualifies,
                        that counsel for the Company shall deem appropriate and
                        which form shall be available for the sale of the Sale
                        Shares to be purchased by the Investor or the Note
                        Conversion Shares into which the applicable Subsequent
                        Convertible Note may be converted assuming a conversion
                        price of $0.75 and any Warrant Shares and Commitment
                        Shares which have not previously been registered, in
                        accordance with the intended method of distribution of
                        such securities. The aggregate number of shares to be
                        registered under such Registration Statement shall be
                        determined by the Company.

          (b)  Effectiveness of the Registration Statements. The following
               --------------------------------------------
conditions for effectiveness shall apply to the Registration Statements required
to be filed by the Company with the SEC pursuant to paragraph (a) above, without
limiting the Company's obligation to file such Registration Statements. The
Company shall use its best efforts: (i) to have the First Registration Statement
declared effective by the SEC in no event later than 90 calendar days after the
Closing Date relating to the Initial Convertible Note, and (ii) to have each
Subsequent Registration Statement declared effective by the SEC in no event
later than 60 calendar days

<PAGE>

          after the Closing Date relating to each Unregistered Sale, and in any
          event prior to any further Subsequent Sales. The Company shall ensure
          that each Registration Statement and any amendments thereto remain in
          effect until the later of (1) one day following the date of expiration
          of the Incentive Warrant Exercise Period for the Initial Incentive
          Warrant (as such term is defined in the Initial Incentive Warrant) or,
          if the Subsequent Incentive Warrant has been issued, one day following
          the date of expiration of the Incentive Warrant Exercise Period for
          the Subsequent Incentive Warrant (as such term is defined in the
          Subsequent Incentive Warrant), if such Incentive Warrant has not been
          exercised in full and if such Registration Statement covers the
          Warrant Shares issuable under such Incentive Warrant, and (2) the date
          the Registrable Securities covered by such Registration Statement and
          issued or issuable to the Investor pursuant to the Securities Purchase
          Agreement, the Convertible Notes and the Warrants may be sold by the
          Investor without registration and without any time, volume or manner
          limitations pursuant to Rule 144(k) (or any similar provision then in
          effect) under the Securities Act or have otherwise been sold; provided
          that such period shall be extended one day for ------ each day after
          the applicable Effective Date that any Registration Statement covering
          Registrable Securities is not effective during the period such
          Registration Statement is required to be effective pursuant to this
          Agreement.

          (c)  Failure to Obtain or Maintain Effectiveness of Registration
               -----------------------------------------------------------
               Statements.
               ----------

               (i)  In the event the Company fails for any reason to obtain the
               effectiveness of any Registration Statement within the time
               periods set forth in Section 1.1(b) (a "Tardy Registration
                                                       ------------------
               Statement") or in the event that the Company fails for any reason
               ---------
               to maintain the effectiveness of any Registration Statement (or
               the underlying prospectus) covering Registrable Securities for
               the time period set forth in Section 1.1(b) (an "Ineffective
                                                                -----------
               Registration Statement" together with a Tardy Registration
               ----------------------
               Statement, a "Failed Registration Statement") or upon the
                             -----------------------------
               occurrence of any event of the kind described in Section
               2.1(g)(iv) hereof (unless the Registrable Securities covered by
               such Registration Statement shall have become freely tradable
               pursuant to Rule 144(k) of the Securities Act or have been
               otherwise sold), then, in either event an amount equal to two
               percent (2.0%) of the aggregate Purchase Price of all of the
               Registrable Securities covered by any such Failed Registration
               Statement then held by the Investor for each calendar month and
               for each portion of a calendar month, pro rata, (the "Failed
                                                                     ------
               Registration Statement Fee") during any period of such
               --------------------------
               ineffectiveness or, in the case of the occurrence of an event of
               the kind described in Section 2.1(g)(iv) hereof, until the
               Investor shall have received copies of the supplemental or
               amended prospectus contemplated by Section 2.1(g)(iv) hereof (an
               "Ineffective Period"), shall become due and payable to Investor.
                ------------------

               (ii) If Failed Registration Statement Fees accrue with respect to
               any Ineffective Registration Statement, payment of such Failed
               Registration

<PAGE>

               Statement Fees shall be made on the first Trading Day after
               the earlier to occur of (1) the expiration of the applicable
               Ineffective Period and (2) the last day of each calendar month
               during an Ineffective Period.

          (d)  Restricted Period. While in possession of material non-public
               -----------------
          information received from the Company (a "Restricted Period"), the
                                                    -----------------
          Investor shall not dispose of any Registrable Securities until such
          information is disclosed to the public; provided that, if such
          Restricted Period exceeds 120 days, the liquidated damages described
          in Section 1.1(c) hereof shall be increased to three percent (3.0%)
          until such Restricted Period shall have elapsed.

          (e)  Failure to Register Sufficient Number of Shares. If the number of
               -----------------------------------------------
          Note Conversion Shares and Warrant Shares included in the First
          Registration Statement or each Subsequent Registration Statement is
          insufficient to permit the conversion in full of the applicable
          Convertible Note or the exercise in full of the applicable Warrant
          (such deficit in the number of shares is referred to herein as the
          "Deficit Shares"), then (i) the Company shall immediately amend such
           --------------
          Registration Statement (or file a new Registration Statement) to cover
          the Deficit Shares (such amended or new Registration Statement is
          referred to herein as a "Deficit Shares Registration Statement") and
                                   -------------------------------------
          (ii) the Company shall pay to the Investor in immediately available
          funds into an account designated by the Investor an amount equal to
          2.0% of the product of (x) the number of Deficit Shares multiplied by
          (y) the Bid Price of the Common Stock on the applicable Effective
          Date, for each calendar month and for each portion of a calendar
          month, pro rata, during the period from the Effective Date of the
          applicable Registration Statement to the Effective Date of the
          applicable Deficit Shares Registration Statement.

          (f)  Liquidated Damages. The Company and the Investor hereby
               ------------------
          acknowledge and agree that the sums payable under subsections 1.1(c),
          1.1(d) and 1.1(e) hereof shall constitute liquidated damages and not
          penalties. The parties further acknowledge that (i) the amount of loss
          or damages likely to be incurred is incapable or is difficult to
          estimate precisely, (ii) the amounts specified in such subsections
          bear a reasonable proportion and are not plainly or grossly
          disproportionate to the probable loss likely to be incurred in
          connection with any failure by the Company to obtain or maintain the
          effectiveness of a Registration Statement, (iii) one of the reasons
          for the Company and the Investor reaching an agreement as to such
          amounts was the uncertainty and cost of litigation regarding the
          question of actual damages, and (iv) the Company and the Investor are
          sophisticated business parties and have been represented by
          sophisticated and able legal and financial counsel and negotiated this
          Agreement at arm's length.

          (g)  Piggyback Registrations. If the Company shall determine to
               -----------------------
          register for sale with the SEC any of its Common Stock or securities
          convertible into, or exchangeable or exercisable for, shares of its
          Common Stock other than for resale by the Investor (a "Piggyback
                                                                 ---------
          Registration"), the Company shall give the Investor written notice
          ------------
          thereof (a "Notice of Piggyback Registration") 30 calendar days
                      --------------------------------

<PAGE>

            prior to the filing of a registration statement relating to such
            Piggyback Registration, which notice shall include a description of
            (i) the intended method of distribution of such Common Stock and
            such other securities, (ii) the number of shares of Common Stock and
            such other securities the Company intends to register, and (iii)
            such other Persons who will or have a right to participate in the
            Piggyback Registration. Upon the written request of the Investor
            made within 20 days after receipt of a Notice of Piggyback
            Registration (which request shall specify the Registrable Securities
            intended to be disposed of by the Investor and the intended method
            of distribution thereof), the Company shall include in the
            registration statement relating to such Piggyback Registration all
            Registrable Securities that the Company has been so requested to
            register by the Investor. If the Piggyback Registration for which
            the Company gives a Notice of Piggyback Registration is a registered
            public offering involving an underwriting, and the underwriters
            selected by the Company advise the Company in writing that marketing
            factors require a limitation on the number of shares of Common Stock
            or other securities to be underwritten, the Company shall reduce the
            number of shares of Common Stock or other securities included in
            such registration (1) first, by reducing the number of shares of
            Common Stock or other securities to be registered for resale by all
            Persons other than the Investor, allocated among such Persons in
            accordance with the priorities then existing among the Company and
            such Persons and (2) second, by reducing on a pro rata basis the
            number of shares of Registrable Securities requested to be included
            by the Investor. Any other shares of Common Stock, Registrable
            Securities, or other securities of the Company so excluded shall be
            withdrawn from and shall not be included in such Piggyback
            Registration.

                                   ARTICLE II
                             REGISTRATION PROCEDURES

Section 2.1 FILINGS; INFORMATION. The Company will effect the registration of
the Registrable Securities in accordance with the intended methods of
disposition thereof as furnished to the Company by any proposed seller of such
Registrable Securities prior to the filing of a Registration Statement therefor.
Without limiting the foregoing, the Company in each such case will do the
following as expeditiously as possible, but in no event later than the deadline,
if any, prescribed therefor in this Agreement:

            a. The Company shall (i) prepare and file with the SEC the
               Registration Statement(s) covering the shares as described in
               subsection 1.1(a) above; (ii) use its best efforts to cause such
               filed Registration Statement(s) to become and remain effective
               (pursuant to Rule 415 under the Securities Act or otherwise) for
               the period prescribed by Section 1.1(b); (iii) prepare and file
               with the SEC such amendments and supplements to each Registration
               Statement and the prospectus used in connection therewith as may
               be necessary to keep each Registration Statement effective for
               the time period prescribed by Section 1.1(b); and (iv) comply
               with the provisions of the Securities Act with respect to the
               disposition of all securities covered by each Registration
               Statement

<PAGE>

               during such period in accordance with the intended methods of
               disposition by the Investor set forth in each Registration
               Statement.

            b. The Company shall file all necessary amendments to each
               Registration Statement in order to effectuate the purpose of this
               Agreement, the Securities Purchase Agreement, the Convertible
               Notes and the Warrants.

            c. Five Trading Days prior to filing each Registration Statement or
               prospectus, or any amendment or supplement thereto (excluding
               amendments deemed to result from the filing of documents
               incorporated by reference therein), the Company shall deliver to
               the Investor and one firm of counsel representing the Investor,
               in accordance with the notice provisions of Section 4.8, copies
               of such Registration Statement as proposed to be filed, together
               with exhibits thereto, which documents will be subject to review
               and comment by the Investor and such counsel, and thereafter
               deliver to the Investor and such counsel, in accordance with the
               notice provisions of Section 4.8, such number of copies of such
               Registration Statement, each amendment and supplement thereto (in
               each case including all exhibits thereto), the prospectus
               included in such Registration Statement (including each
               preliminary prospectus) and such other documents or information
               as the Investor or counsel may reasonably request in order to
               facilitate the disposition of the Registrable Securities.

            d. The Company shall deliver, in accordance with the notice
               provisions of Section 4.8, to each broker as directed by the
               Investor such number of conformed copies of such Registration
               Statement and of each amendment and supplement thereto (in each
               case including all exhibits and documents incorporated by
               reference), such number of copies of the prospectus contained in
               such Registration Statement (including each preliminary
               prospectus and any summary prospectus) and any other prospectus
               filed under Rule 424 promulgated under the Securities Act
               relating to the Registrable Securities, and such other documents,
               as may be reasonably requested to facilitate the disposition of
               the Registrable Securities.

            e. After the filing of each Registration Statement, the Company
               shall promptly notify the Investor of any stop order issued or
               threatened by the SEC in connection therewith and take all
               commercially reasonable actions required to prevent the entry of
               such stop order or to remove it if entered.

            f. The Company shall use its best efforts to (i) register or qualify
               the Registrable Securities under such other securities or blue
               sky laws of such jurisdictions in the United States as the
               Investor may reasonably (in light of its intended plan of
               distribution) request, and (ii) cause the Registrable Securities
               to be registered with or approved by such other governmental
               agencies or authorities in the United States as may be necessary
               by virtue of the business and operations of the Company and do
               any and all other acts and things that may be reasonably
               necessary or advisable to enable the Investor to consummate the
               disposition of the Registrable Securities; provided, however,
                                                          --------  -------

<PAGE>

               that the Company will not be required to qualify generally to do
               business in any jurisdiction where it would not otherwise be
               required to qualify but for this paragraph (f), subject itself to
               taxation in any such jurisdiction, or consent or subject itself
               to general service of process in any such jurisdiction.

            g. The Company shall immediately notify the Investor upon the
               occurrence of any of the following events in respect of a
               Registration Statement or related prospectus in respect of an
               offering of Registrable Securities: (i) receipt of any request
               for additional information by the SEC or any other federal or
               state governmental authority during the period of effectiveness
               of the Registration Statement or amendments or supplements to the
               Registration Statement or related prospectus; (ii) the issuance
               by the SEC or any other federal or state governmental authority
               of any stop order suspending the effectiveness of a Registration
               Statement or the initiation of any proceedings for that purpose;
               (iii) receipt of any notification with respect to the suspension
               of the qualification or exemption from qualification of any of
               the Registrable Securities for sale in any jurisdiction or the
               initiation or threatening of any proceeding for such purpose;
               (iv) the happening of any event that makes any statement made in
               such Registration Statement or related prospectus or any document
               incorporated or deemed to be incorporated therein by reference
               untrue in any material respect or that requires the making of any
               changes in the Registration Statement, related prospectus or
               documents so that, in the case of a Registration Statement, it
               will not contain any untrue statement of a material fact or omit
               to state any material fact required to be stated therein or
               necessary to make the statements therein not misleading, and that
               in the case of the related prospectus, it will not contain any
               untrue statement of a material fact or omit to state any material
               fact required to be stated therein or necessary to make the
               statements therein, in the light of the circumstances under which
               they were made, not misleading; (v) the declaration by the SEC of
               the effectiveness of a Registration Statement; and (vi) the
               Company's reasonable determination that a post-effective
               amendment to the Registration Statement would be appropriate, and
               the Company promptly shall make available to the Investor any
               such supplement or amendment to the related prospectus.

            h. The Company shall enter into customary agreements and take such
               other actions as are reasonably required in order to expedite or
               facilitate the disposition of such Registrable Securities
               (whereupon the Investor, at its option, may require that any or
               all of the representations, warranties and covenants of the
               Company also be made to and for the benefit of the Investor).

            i. The Company shall make available to the Investor (and will
               deliver to Investor's counsel), subject to restrictions imposed
               by the United States government or any agency or instrumentality
               thereof, copies of all correspondence between the SEC and the
               Company, concerning any Registration Statement, and also will
               make available for inspection by the Investor and any attorney,
               accountant or other professional retained by the Investor
               (collectively, the "Inspectors"), all financial and other
                                   ----------
               records,

<PAGE>

               pertinent corporate documents and properties of the Company
               (collectively, the "Records") as shall be reasonably necessary to
                                   -------
               enable them to exercise their due diligence responsibility, and
               cause the Company's officers and employees to supply all
               information reasonably requested by any Inspectors in connection
               with any Registration Statement. Records that the Company
               determines, in good faith, to be confidential and that it
               notifies the Inspectors are confidential shall not be disclosed
               by the Inspectors unless (i) the disclosure of such Records is
               necessary to avoid or correct a misstatement or omission in any
               Registration Statement or (ii) the disclosure or release of such
               Records is requested or required pursuant to oral questions,
               interrogatories, requests for information or documents or a
               subpoena or other order from a court of competent jurisdiction or
               other process; provided, however, that prior to any disclosure or
                              --------  -------
               release pursuant to clause (ii), the Inspectors shall provide the
               Company with prompt notice of any such request or requirement so
               that the Company may seek an appropriate protective order or
               waive such Inspectors' obligation not to disclose such Records;
               and, provided, further, that if failing the entry of a protective
                    --------  -------
               order or the waiver by the Company permitting the disclosure or
               release of such Records, the Inspectors, upon advice of counsel,
               are compelled to disclose such Records, the Inspectors may
               disclose that portion of the Records that counsel has advised the
               Inspectors that the Inspectors are compelled to disclose. The
               Investor agrees that information obtained by it solely as a
               result of such inspections (not including any information
               obtained from a third party who, insofar as is known to the
               Investor after reasonable inquiry, is not prohibited from
               providing such information by a contractual, legal or fiduciary
               obligation to the Company) shall be deemed confidential and, if
               material non-public information, the Investor shall not while in
               possession of such information engage in market transactions in
               the securities of the Company or its Affiliates unless and until
               such information is made generally available to the public. The
               Investor further agrees that upon learning that disclosure of
               such Records is sought in a court of competent jurisdiction, it
               will give notice to the Company and allow the Company, at its
               expense, to undertake appropriate action to prevent disclosure of
               the Records deemed confidential.

            j. To the extent required by law or reasonably necessary to effect a
               sale of Registrable Securities in accordance with prevailing
               business practices at the time of any sale of Registrable
               Securities pursuant to a Registration Statement, the Company
               shall deliver to the Investor a signed counterpart, addressed to
               the Investor, of (1) an opinion or opinions of counsel to the
               Company and (2) a comfort letter or comfort letters from the
               Company's independent public accountants, each in customary form
               and covering such matters of the type customarily covered by
               opinions of comfort letters, as the case may be, as the Investor
               therefor reasonably requests.

            k. The Company otherwise shall comply with all applicable rules and
               regulations of the SEC, including, without limitation, compliance
               with applicable reporting requirements under the Exchange Act.

<PAGE>

            l. The Company may require the Investor to furnish promptly in
               writing to the Company such information as may be legally
               required in connection with any registration including, without
               limitation, all such information as may be requested by the SEC
               or the National Association of Securities Dealers, Inc. (the
               "NASD"). The Investor agrees to provide such information
                ----
               requested in connection with any registration within ten Trading
               Days after receiving such written request and the Company shall
               not be responsible for any delays in obtaining or maintaining the
               effectiveness of a Registration Statement caused by the
               Investor's failure to timely provide such information. Each
               seller of Registrable Securities shall notify the Company as
               promptly as practicable of any inaccuracy or change in
               information previously furnished by such seller to the Company or
               of the occurrence of any event, in either case as a result of
               which any prospectus relating to the Registrable Securities
               contains or would contain an untrue statement of a material fact
               regarding such seller or its intended method of disposition of
               such Registrable Securities or omits to state any material fact
               regarding such seller or such seller's intended method of
               disposition of such Registrable Securities required to be stated
               therein or necessary to make the statements therein, in the light
               of the circumstances under which they were made, not misleading,
               and promptly furnish to the Company any additional information
               required to correct and update any previously furnished
               information or required so that such prospectus shall not
               contain, with respect to such seller or the disposition of such
               Registrable Securities, an untrue statement of a material fact or
               omit to state a material fact required to be stated therein or
               necessary to make the statements therein, in the light of the
               circumstances under which they were made, not misleading.

         Section 2.2.  REGISTRATION EXPENSES.

            a. In connection with each Registration Statement, the Company shall
               pay all registration expenses incurred in connection with the
               registration thereunder (the "Registration Expenses"), including,
                                             ---------------------
               without limitation: (i) all registration, filing, securities
               exchange listing and fees required by the NASD, (ii) all
               registration, filing, qualification and other fees and expenses
               of compliance with securities or blue sky laws (including
               reasonable fees and disbursements of counsel in connection with
               blue sky qualifications of the Registrable Securities required
               hereby), (iii) all of the Company's word processing, duplicating,
               printing, messenger and delivery expenses, (iv) the Company's
               internal expenses (including, without limitation, all salaries
               and expenses of its officers and employees performing legal or
               accounting duties), (v) the fees and expenses incurred by the
               Company in connection with the listing of the Registrable
               Securities, (vi) subject to paragraph (b) below, reasonable fees
               and disbursements of counsel for the Company and the Investor and
               customary fees and expenses for independent certified public
               accountants retained by the Company (including the expenses of
               any special audits or comfort letters or costs associated with
               the delivery by independent certified public accountants of such
               special audit(s) or comfort letter(s) requested pursuant to
               Section 2.1(j) hereof), (vii) the fees and expenses of any

<PAGE>

               special experts retained by the Company in connection with such
               registration, (viii) premiums and other costs of policies of
               insurance purchased at the discretion of the Company against
               liabilities arising out of any public offering of the Registrable
               Securities being registered, and (ix) any fees and disbursements
               of underwriters customarily paid by issuers or sellers of
               securities, but excluding underwriting fees, discounts, transfer
               taxes or commissions, if any, attributable to the sale of
               Registrable Securities, which shall be payable by each holder of
               Registrable Securities pro rata on the basis of the number of
               Registrable Securities of each such holder that are included in a
               registration under this Agreement.

            b. The Company shall pay all reasonable fees and expenses of counsel
               for the Investor incurred in connection with the review, and
               assistance in preparation, of each Registration Statement up to
               $10,000 per Registration Statement, unless a greater amount is
               required due to the nature of the review performed by Investor's
               counsel or the extent of assistance provided by Investor's
               counsel (an estimate of such greater fees and expenses of such
               firm of counsel to the Investor shall be provided to the Company
               prior to the undertaking of such counsel's additional review or
               assistance).

<PAGE>

                                   ARTICLE III

                        INDEMNIFICATION AND CONTRIBUTION

     Section 3.1.   INDEMNIFICATION

            a. The Company agrees to indemnify and hold harmless the Investor,
               its partners, Affiliates, officers, directors, employees and duly
               authorized agents, and each Person or entity, if any, who
               controls the Investor within the meaning of Section 15 of the
               Securities Act or Section 20 of the Exchange Act, together with
               the partners, Affiliates, officers, directors, employees and duly
               authorized agents of such controlling Person or entity
               (collectively, the "Investor Controlling Persons"), from and
                                   ----------------------------
               against any and all losses, claims, damages, liabilities, costs
               and expenses (including, without limitation, any and all
               reasonable attorneys' fees and disbursements and costs and
               expenses of investigating and defending any such claim and any
               and all amounts paid in settlement of, any action, suit or
               proceeding between any of the indemnified parties and any
               indemnifying parties or between any indemnified party and any
               third party, or otherwise, or any claim asserted) (collectively,
               "Damages"), joint or several, and any action or proceeding in
                -------
               respect thereof to which the Investor, its partners, Affiliates,
               officers, directors, employees and duly authorized agents, and
               any Investor Controlling Person, becomes subject to under the
               Securities Act, the Exchange Act or other federal or state
               statutory law or regulation, at common law or otherwise, as and
               when incurred, insofar as such Damages (or actions or proceedings
               in respect thereof) (i) arise out of, or are based upon, any
               untrue statement or alleged untrue statement of a material fact
               contained in any Registration Statement, or in any preliminary
               prospectus, final prospectus, summary prospectus, documents filed
               under the Exchange Act and deemed to be incorporated by reference
               into any Registration Statement, application or other document
               executed by or on behalf of the Company or based on written
               information furnished by or on behalf of the Company filed in any
               jurisdiction in order to qualify the Registrable Securities under
               the securities or blue sky laws thereof or filed with the SEC,
               amendment or supplement relating to the Registrable Securities or
               (ii) arise out of, or are based upon, any omission or alleged
               omission to state therein a material fact required to be stated
               therein or necessary to make the statements therein not
               misleading, and shall reimburse the Investor, its partners,
               Affiliates, officers, directors, employees and duly authorized
               agents, and each such Investor Controlling Person, for any legal
               and other expenses reasonably incurred by the Investor, its
               partners, Affiliates, officers, directors, employees and duly
               authorized agents, or any such Investor Controlling Person, as
               incurred, in investigating or defending or preparing to defend
               against any such Damages or actions or proceedings; provided,
                                                                   --------
               however, that the Company shall not be liable to the extent that
               -------
               any such Damages arise out of the Investor's failure to send or
               give a copy of the final prospectus or supplement at or prior to
               the written confirmation of the sale of Registrable Securities to
               the persons asserting an untrue statement or alleged

<PAGE>

            untrue statement or omission or alleged omission at or prior to the
            written confirmation of the sale of Registrable Securities to such
            person if such statement or omission was corrected in such final
            prospectus or supplement, and provided that the Investor had been
                                          --------
            obligated under applicable law to deliver such final prospectus or
            supplement to such person; provided, further, that the Company shall
                                       --------  -------
            not be liable to the extent that any such Damages arise out of or
            are based upon an untrue statement or alleged untrue statement or
            omission or alleged omission made in such Registration Statement, or
            any such preliminary prospectus, final prospectus, summary
            prospectus, amendment or supplement in reliance upon and in
            conformity with written information furnished to the Company by the
            Investor or any other person who participates as a seller or as an
            underwriter in the offering or sale of such securities, in either
            case, in any questionnaire or other request by the Company, or
            otherwise specifically stating that it is for use in the preparation
            thereof, and provided that such written information furnished to the
                         --------
            Company by the Investor, or any other person who participates as a
            seller or as an underwriter in the offering or sale of such
            securities, is not materially altered by the Company.

       b.   The Investor agrees to indemnify and hold harmless the Company, its
            Affiliates, officers, directors, employees, and duly authorized
            agents from and against any and all Damages, joint or several, and
            any action in respect thereof to which the Company, its Affiliates,
            officers, directors, employees, and duly authorized agents becomes
            subject to under the Securities Act, the Exchange Act or other
            federal or state statutory law or regulation, at common law or
            otherwise, as and when incurred, insofar as such Damages (or actions
            or proceedings in respect thereof) arise out of, or are based upon,
            any untrue statement or alleged untrue statement or omission or
            alleged omission made in a Registration Statement, or any
            preliminary prospectus, final prospectus, summary prospectus,
            amendment or supplement in reliance upon and in conformity with
            written information furnished to the Company by the Investor in any
            questionnaire or other request by the Company, or otherwise
            specifically stating that it is for use in the preparation thereof;
            provided, however, that such written information furnished to the
            --------  -------
            Company by the Investor is not materially altered by the Company.
            Notwithstanding the foregoing, the Investor shall in no event be
            required to indemnify the Company for any amount in excess of the
            amount by which the total price at which the Registrable Securities
            of the Investor were sold to the public (less underwriting discounts
            and commissions) exceeds the amount actually paid by the Investor
            under the Securities Purchase Agreement for such Registrable
            Securities sold to the public.

       c.   All claims for indemnification shall be asserted and resolved as set
            forth in Section 9.2 of the Securities Purchase Agreement.

     Section 3.2. ARBITRATION. Any controversy, claim or dispute arising out of
or in connection with this Agreement, including any question regarding its
existence, validity,

<PAGE>

interpretation, breach, or termination, shall be referred to and finally
resolved in accordance with Section 9.3 of the Securities Purchase Agreement.

     Section 3.3. OTHER INDEMNIFICATION. Indemnification similar to that
specified in the preceding paragraphs of this Article III (with appropriate
modifications) shall be given by the Company with respect to any required
registration or other qualification of securities under any federal or state law
or regulation of any governmental authority other than the Securities Act. The
provisions of this Article III shall be in addition to any other rights to
indemnification, contribution or other remedies which an Indemnified Party may
have pursuant to law, equity, contract or otherwise.

     Section 3.4. CONTRIBUTION. If the indemnification and reimbursement
obligations provided for in any section of this Article III is unavailable or
insufficient to hold harmless the Indemnified Parties in respect of any Damages
referred to herein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Damages as between the Company on the one
hand and the Investor or seller on the other, in such proportion as is
appropriate to reflect the relative fault of the Company and of the Investor or
seller in connection with such statements or omissions, as well as other
equitable considerations. The relative fault of the Company on the one hand and
of the Investor or seller on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by such party, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

The Company and the Investor agree that it would not be just and equitable if
contribution pursuant to this Section 3.4 were determined by pro rata allocation
or by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an Indemnified Party as a result of the Damages referred to
in the immediately preceding paragraph shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses reasonably incurred
by such Indemnified Party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 3.4, the
Investor or seller shall in no event be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities of the Investor or seller were sold to the public (less underwriting
discounts and commissions) and less the amount actually paid by the Investor
under the Securities Purchase Agreement for such Registrable Securities sold to
the public exceeds the amount of any damages which the Investor or seller has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

<PAGE>

                                   ARTICLE IV

                                  MISCELLANEOUS

         Section 4.1. OUTSTANDING REGISTRATION RIGHTS. Except as set forth on
Schedule 4.1, the Company represents and warrants to the Investor that there is
not in effect on the date hereof any agreement by the Company pursuant to which
any holders of securities of the Company have a right to cause the Company to
register or qualify such securities under the Securities Act or any securities
or blue sky laws of any jurisdiction. The Company hereby covenants and agrees
that until 270 calendar days after the Registration Statement has been declared
effective by the SEC it will not, without the prior written consent of the
Investor, enter into or amend any agreement by the Company pursuant to which any
holders of securities of the Company have a right to cause the Company to
register or qualify securities under the Securities Act or any securities or
blue sky laws of any jurisdiction; provided, however, that the foregoing shall
not apply to a Third Party Sale (as such term is defined in the Securities
Purchase Agreement) for which the Investor has elected not to exercise its right
of first refusal pursuant to Section 6.12 of the Securities Purchase Agreement.

         Section 4.2. TERM. The registration rights provided to the holders of
Registrable Securities hereunder shall terminate at such time as all Registrable
Securities have been issued and have ceased to be Registrable Securities.
Notwithstanding the foregoing, paragraphs (c) and (d) of Section 1.1, Article
III, Section 4.8, and Section 4.9 shall survive the termination of this
Agreement.

         Section 4.3. RULE 144. If the Company is required to file reports under
the Exchange Act, the Company will file in a timely manner, information,
documents and reports in compliance with the Securities Act and the Exchange Act
and will, at its expense, promptly take such further action as holders of
Registrable Securities reasonably may request to enable such holders of
Registrable Securities to sell Registrable Securities without registration under
the Securities Act within the limitation of the exemptions provided by (a) Rule
144 under the Securities Act ("Rule 144"), as such Rule may be amended from time
                               --------
to time, or (b) any similar rule or regulation hereafter adopted by the SEC. If
at any time the Company is not required to file such reports, it will, at its
expense, forthwith upon the written request of any holder of Registrable
Securities who intends to make a sale under Rule 144, make available adequate
current public information with respect to the Company within the meaning of
paragraph (c)(2) of Rule 144 or such other information as necessary to permit
sales pursuant to Rule 144. Upon the request of the Investor, the Company will
deliver to the Investor a written statement, signed by the Company's principal
financial officer, as to whether it has complied with such requirements. This
Section 4.3 shall terminate at the same time as the registration rights as
provided in Section 4.2.

         Section 4.4. CERTIFICATE. The Company will, at its expense, forthwith
upon the request of any holder of Registrable Securities, deliver to such holder
a certificate, signed by the Company's principal financial officer, stating (a)
the Company's name, address and telephone number (including area code), (b) the
Company's Internal Revenue Service identification number, (c) the Company's SEC
file number, (d) the number of shares of each class of stock outstanding as
shown by the most recent report or statement published by the Company, and (e)
whether the Company has filed the reports required to be filed under the
Exchange Act for a

<PAGE>

period of at least ninety (90) days prior to the date of such certificate and in
addition has filed the most recent annual report required to be filed
thereunder.

         Section 4.5. AMENDMENT AND MODIFICATION. Any provision of this
Agreement may be waived, provided that such waiver is set forth in a writing
executed by both parties to this Agreement. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company has obtained the written consent of the
holders of a majority of the then outstanding Registrable Securities.
Notwithstanding the foregoing, the waiver of any provision hereof with respect
to a matter that relates exclusively to the rights of holders of Registrable
Securities whose securities are being sold pursuant to a Registration Statement
and does not directly or indirectly affect the rights of other holders of
Registrable Securities may be given by holders of at least a majority of the
Registrable Securities being sold by such holders; provided that the provisions
of this sentence may not be amended, modified or supplemented except in
accordance with the provisions of the immediately preceding sentence. No course
of dealing between or among any Person having any interest in this Agreement
will be deemed effective to modify, amend or discharge any part of this
Agreement or any rights or obligations of any person under or by reason of this
Agreement.

         Section 4.6. SUCCESSORS AND ASSIGNS; ENTIRE AGREEMENT. This Agreement
and all of the provisions hereof shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns. The Investor
may assign its rights under this Agreement to any subsequent holder the
Registrable Securities, provided that the Company shall have the right to
require any holder of Registrable Securities to execute a counterpart of this
Agreement and agree to be bound by the provisions of this Agreement as a
condition to such holder's claim to any rights hereunder. This Agreement,
together with the Securities Purchase Agreement, the Convertible Note, the
Warrants and the exhibits and schedules to such agreements together set forth
the entire agreement and understanding between the parties as to the subject
matter hereof and merges and supersedes all prior discussions, agreements and
understandings of any and every nature among them.

         Section 4.7. SEVERABILITY. In the event that any provision of this
Agreement or the application of any provision hereof is declared to be illegal,
invalid or otherwise unenforceable by a court of competent jurisdiction, the
remainder of this Agreement shall not be affected except to the extent necessary
to delete such illegal, invalid or unenforceable provision unless that provision
held invalid shall substantially impair the benefits of the remaining portions
of this Agreement.

         Section 4.8. NOTICES. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and shall be (i) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (ii) delivered by reputable air courier
service with charges prepaid, or (iii) transmitted by hand delivery, telegram or
facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other
communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at the address or
number designated below (if delivered on a business day during normal business

<PAGE>

hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the third business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses and facsimile numbers for such communications
shall be:

         If to the Company:

                                            Dauphin Technology, Inc.
                                            800 E. Northwest Highway
                                            Suite 950
                                            Palatine, IL  60067
                                            Attention: Christopher L. Geier
                                            Telephone: (847) 358-4406
                                            Facsimile: (847) 358-4407

         with a copy (which shall not constitute notice) to:

                                            Rieck & Crotty, P.C.
                                            55 West Monroe Street, Suite 3390
                                            Chicago, IL  60603-5062
                                            Attention:  Ronald Duplack, Esq.
                                            Telephone: (312) 726-4646
                                            Facsimile: (312) 726-0647
         if to the Investor:

                                            Crescent International Ltd.
                                            c/o GreenLight (Switzerland) SA
                                            84, av Louis-Casai
                                            1216 Geneva, Cointrin
                                            Switzerland
                                            Attention:  Mel Craw/Maxi Brezzi
                                            Telephone: +41 22 791 71 69
                                            Facsimile: +41 22 929 53 94

<PAGE>

         with a copy (which shall not constitute notice) to:

                                            Clifford Chance Rogers & Wells LLP
                                            200 Park Avenue
                                            New York, NY  10166
                                            Attention: Earl S. Zimmerman, Esq.
                                            Telephone: (212)  878-8000
                                            Facsimile: (212)  878-8375

             Either party hereto may from time to time change its address or
facsimile number for notices under this Section 4.8 by giving at least 10 days'
prior written notice of such changed address or facsimile number to the other
party hereto.

        Section 4.9. GOVERNING LAW. This Agreement shall be construed under the
laws of the State of New York.

        Section 4.10 HEADINGS. The headings in this Agreement are for
convenience of reference only and shall not constitute a part of this Agreement,
nor shall they affect their meaning, construction or effect.

        Section 4.11. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be an original instrument and all
of which together shall constitute one and the same instrument.

        Section 4.12. FURTHER ASSURANCES. Each party shall cooperate and take
such action as may be reasonably requested by another party in order to carry
out the provisions and purposes of this Agreement and the transactions
contemplated hereby.

        Section 4.13. ABSENCE OF PRESUMPTION. This Agreement shall be construed
without regard to any presumption or rule requiring construction or
interpretation against the party drafting or causing any instrument to be
drafted.

        Section 4.14. REMEDIES. In the event of a breach or a threatened breach
by any party to this Agreement of its obligations under this Agreement, any
party injured or to be injured by such breach will be entitled to specific
performance of its rights under this Agreement or to injunctive relief, in
addition to being entitled to exercise all rights provided in this Agreement and
granted by law. The parties agree that the provisions of this Agreement shall be
specifically enforceable, it being agreed by the parties that the remedy at law,
including monetary damages, for breach of any such provision may be inadequate
compensation for any loss.

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be executed by the undersigned, thereunto duly authorized,
as of the date first set forth above.

                                CRESCENT INTERNATIONAL LTD.

                                By:
                                   ---------------------------------------------
                                   Name:
                                   Title:

                                DAUPHIN TECHNOLOGY, INC.

                                By:
                                   ---------------------------------------------
                                   Name:  Christopher L. Geier
                                   Title: Executive Vice President<PAGE>

Exhibit 10.4

                                INCENTIVE WARRANT

              THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR ANY OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE
UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
SUCH OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A
TRANSACTION WHICH IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE
HOLDER OF THIS CERTIFICATE IS THE BENEFICIARY OF CERTAIN OBLIGATIONS OF DAUPHIN
TECHNOLOGY, INC. SET FORTH IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF
SEPTEMBER 28, 2001, AS AMENDED BY AMENDMENT TO SECURITIES PURCHASE AGREEMENT,
DATED AS OF SEPTEMBER 28, 2001, BETWEEN DAUPHIN TECHNOLOGY, INC. AND CRESCENT
INTERNATIONAL LTD. A COPY OF THE PORTION OF THE AFORESAID AGREEMENT EVIDENCING
SUCH OBLIGATIONS MAY BE OBTAINED FROM DAUPHIN TECHNOLOGY, INC.'S EXECUTIVE
OFFICES.

                                                              September 28, 2001

Warrant to Purchase 700,000 shares of Common Stock of Dauphin Technology, Inc.
(hereinafter, the "Incentive Warrant").
                   -----------------

Dauphin Technology, Inc., an entity organized and existing under the laws of the
State of Illinois (the "Company"), hereby agrees that Crescent International
                        -------
Ltd. (the "Investor") or any other Warrant Holder is entitled, on the terms and
           --------
conditions set forth below, to purchase from the Company at any time during the
Exercise Period (as defined below) 700,000 fully paid and nonassessable shares
of Common Stock, par value $0.001 per share, of the Company (the "Common
                                                                  ------
Stock"), as the same may be adjusted from time to time pursuant to Section 6
-----
hereof, at the Exercise Price (as defined below), as the same may be adjusted
pursuant to Section 6 hereof. The resale of the shares of Common Stock or other
securities issuable upon exercise or exchange of this Incentive Warrant is
subject to the provisions of the Registration Rights Agreement (as defined
below).

Section 1.    Definitions.
              -----------

              "Aggregate Exercise Price" shall mean, with respect to any
               ------------------------
exercise (in whole or in part) of this Incentive Warrant the Exercise Price
multiplied by the total number of shares of Common Stock for which this
Incentive Warrant is being exercised.

              "Agreement" shall mean the Securities Purchase Agreement, dated as
               ---------
of September 28, 2001, between the Company and the Investor, as amended by
Amendment to Securities Purchase Agreement, dated as of September 28, 2001.

<PAGE>

              "Exercise Date" shall mean, with respect to any exercise (in whole
               -------------
or in part) of this Incentive Warrant the date the Exercise Notice is sent by
facsimile to the Company.

              "Exercise Notice" shall mean, with respect to any exercise (in
               ---------------
whole or in part) of this Incentive Warrant the exercise form attached hereto as
Exhibit A, duly executed by the Warrant Holder.

              "Exercise Period" shall mean the period beginning on the date
               ---------------
hereof and continuing until the expiration of the five-year period thereafter;
provided that such period shall be extended one day for each day after the date
hereof, that the Registration Statement covering (i) Commitment Shares purchased
by the Investor, (ii) the Protective Warrant Shares, if any, related to any
Subsequent Sales and (iii) the Incentive Warrant Shares purchasable through
exercise of this Incentive Warrant, is not effective during the period such
Registration Statement is required to be effective pursuant to the Registration
Rights Agreement.

              "Exercise Price" as of the date hereof shall mean $1.3064 per
               --------------
share of Common Stock, subject to the adjustments provided for in Section 6 of
this Incentive Warrant.

              "Per Share Warrant Value" shall mean, with respect to any exercise
               -----------------------
(in whole or in part) of this Incentive Warrant the difference resulting from
subtracting the Exercise Price from the Bid Price of one share of Common Stock
on the Trading Day immediately preceding the Exercise Date.

              "Registration Rights Agreement" shall mean the registration rights
               -----------------------------
agreement, dated as of September 28, 2001, between the Company and the Investor.

              "Warrant Holder" shall mean the Investor or any assignee or
               --------------
transferee of all or any portion of this Incentive Warrant.

              Other capitalized terms used but not defined herein shall have
their respective meanings set forth in the Agreement.

Section 2.    Exercise; Cashless Exercise.
              ---------------------------

(a)  Method of Exercise. This Incentive Warrant may be exercised in whole or in
     ------------------
     part (but not as to a fractional share of Common Stock), at any time and
     from time to time during the Exercise Period, by the Warrant Holder by the
     delivery by facsimile of an executed and completed Exercise Notice to the
     Company and delivery to the Company within five Trading Days thereafter of
     this Incentive Warrant, the original Exercise Notice and the Aggregate
     Exercise Price.

(b)  Payment of Aggregate Exercise Price. Subject to paragraph (c) below,
     -----------------------------------
     payment of the Aggregate Exercise Price shall be made by wire transfer of
     immediately available funds to an account designated by the Company. If the
     amount of the payment received by the Company is less than the Aggregate
     Exercise Price, the Warrant Holder will be notified of the deficiency and
     shall make payment in that amount within 5 Trading Days of such notice. In
     the event the payment exceeds the Aggregate Exercise Price, the Company
     will refund the excess to the Warrant Holder within 3 Trading Days of both
     the receipt of such payment and the knowledge of such excess.

<PAGE>

           Cashless Exercise. As an alternative to payment of the Aggregate
           -----------------
              Exercise Price in accordance with Section 2(b) above, the arrant
              Holder may elect to effect a cashless exercise, if permissible
              under this Section 2(c), by so indicating on the Exercise Notice
              and including a calculation of the number of shares of Common
              Stock to be issued upon such exercise in accordance with the terms
              hereof (a "Cashless Exercise"). The Warrant Holder may elect to
                         -----------------
              effect a Cashless Exercise upon the occurrence or continuation of
              any of the events described in Section 2.1(g) (ii), (iii), and
              (iv) of the Registration Rights Agreement (whether the Company has
              or has not notified the Warrant Holder of any such event) in
              respect of one or more Registration Statements (as defined in the
              Registration Rights Agreement) covering the shares of Common Stock
              issuable upon exercise of this Incentive Warrant, or upon the
              delisting of the Common Stock from the Principal Market.
              Additionally, the Warrant Holder may elect to effect a Cashless
              Exercise upon the occurrence, and continuation for a period
              exceeding 22 Trading Days from such occurrence, of any event
              described in Section 2.1(g)(vi) of the Registration Rights
              Agreement (whether the Company has or has not notified the Warrant
              Holder of any such event) in respect of one or more Registration
              Statements (as defined in the Registration Rights Agreement)
              covering the shares of Common Stock issuable upon exercise of this
              Incentive Warrant. In the event of a Cashless Exercise, the
              Warrant Holder shall surrender this Incentive Warrant for that
              number of shares of Common Stock determined by (i) multiplying the
              number of Incentive Warrant Shares for which this Incentive
              Warrant is being exercised by the Per Share Warrant Value and (ii)
              dividing the product by the Bid Price of one share of the Common
              Stock on the Trading Day immediately preceding the Exercise Date.

           Replacement Warrant. In the event that the Incentive Warrant is not
           -------------------
              exercised in full, the number of Incentive Warrant Shares shall be
              reduced by the number of such Incentive Warrant Shares for which
              this Incentive Warrant is exercised, and the Company, at its
              expense, shall forthwith issue and deliver to the Warrant Holder a
              new Incentive Warrant of like tenor in the name of the Warrant
              Holder or as the Warrant Holder may request, reflecting such
              adjusted number of Incentive Warrant Shares.

Section 3.    Ten Percent Limitation. At no time may the Warrant Holder exercise
              ----------------------
     this Incentive Warrant such that the number of Incentive Warrant Shares to
     be received pursuant to such exercise aggregated with all other shares of
     Common Stock then owned by the Warrant Holder beneficially or deemed
     beneficially owned (as such term is defined in Rule 13(d) under the
     Exchange Act) by the Warrant Holder and its affiliates would result in the
     Warrant Holder and its affiliates owning more than 9.9% of all of such
     Common Stock as would be outstanding on such Exercise Date, as determined
     in accordance with Section 13(d) of the Exchange Act and the rules and
     regulations promulgated thereunder.

Section 4.    Delivery of Stock Certificates.
              ------------------------------

(a) Subject to the terms and conditions of this Incentive Warrant, as soon as
    practicable after the exercise of this Incentive Warrant in full or in part,
    and in any event within five (5) Trading

<PAGE>

     Days thereafter, the Company at its expense (including, without limitation,
     the payment by it of any applicable issue taxes) will cause to be issued in
     the name of and delivered to the Warrant Holder, or as the Warrant Holder
     lawfully may direct, a certificate or certificates for the number of
     validly issued, fully paid and non-assessable Incentive Warrant Shares to
     which the Warrant Holder shall be entitled on such exercise, together with
     any other stock or other securities or property (including cash, where
     applicable) to which the Warrant Holder is entitled upon such exercise in
     accordance with the provisions hereof; provided, however, that any such
                                            --------  -------
     delivery to a location outside of the United States also shall be made
     within five Trading Days after the exercise of this Incentive Warrant in
     full or in part.

(b)  This Incentive Warrant may not be exercised as to fractional shares of
     Common Stock. In the event that the exercise of this Incentive Warrant, in
     full or in part, would result in the right to acquire any fractional share
     of Common Stock, then in such event such fractional share shall be
     considered a whole share of Common Stock and shall be added to the number
     of Incentive Warrant Shares issuable to the Investor upon exercise of this
     Incentive Warrant.

Section 5.   Representations, Warranties and Covenants of the Company.
             --------------------------------------------------------

(a)  The Company shall take all necessary action and proceedings as may be
     required and permitted by applicable law, rule and regulation for the legal
     and valid issuance of this Incentive Warrant and the Incentive Warrant
     Shares to the Warrant Holder.

(b)  At all times during the Exercise Period, the Company shall take all steps
     reasonably necessary and within its control to insure that the Common Stock
     remains listed or quoted on the Principal Market.

(c)  The Incentive Warrant Shares, when issued in accordance with the terms
     hereof, will be duly authorized and, when paid for or issued in accordance
     with the terms hereof, shall be validly issued, fully paid and
     non-assessable.

(d)  The Company has authorized and reserved for issuance to the Warrant Holder
     the requisite number of shares of Common Stock to be issued pursuant to
     this Incentive Warrant. The Company at all times shall reserve and keep
     available, solely for issuance and delivery as Incentive Warrant Shares
     hereunder, such shares of Common Stock as from time to time shall be
     issuable as Incentive Warrant Shares, and accordingly shall adjust the
     number of such shares of Common Stock promptly upon the occurrence of any
     of the events specified in Section 6 hereof.

Section 6.   Adjustment of the Exercise Price. The Exercise Price and,
             --------------------------------
     accordingly, the number of Incentive Warrant Shares issuable upon exercise
     of the Incentive Warrant, shall be subject to adjustment from time to time
     upon the happening of certain events as follows:

(a)  Reclassification, Consolidation, Merger; Mandatory Share Exchange; Sale
     -----------------------------------------------------------------------
     Transfer or Lease of Assets. If the Company, at any time while this
     ---------------------------
     Incentive Warrant is unexpired and not exercised in full, (i) reclassifies
     or changes its Outstanding Capital Shares (other than a change in par
     value, or from par value to no par value per share, or from no par value
     per share to par value or as a result of a subdivision or combination of
     outstanding securities issuable upon exercise of this Incentive Warrant)
     or (ii) consolidates, merges or effects a

<PAGE>

     mandatory share exchange (x) with or into another corporation (other than a
     merger or mandatory share exchange with another corporation in which the
     Company is a continuing corporation and that does not result in any
     reclassification or change, other than a change in par value, or from par
     value to no par value per share, or from no par value per share to par
     value, or (y) as a result of a subdivision or combination of Outstanding
     Capital Shares issuable upon exercise of the Incentive Warrant) or (iii)
     sells, transfers or leases all or substantially all of its assets, then in
     any such event the Company, or such successor or purchasing corporation, as
     the case may be, shall, without payment by the Warrant Holder of any
     additional consideration therefor, amend this Incentive Warrant or issue a
     new warrant providing that the Warrant Holder shall have rights not less
     favorable to the Warrant Holder than those then applicable to this
     Incentive Warrant and to receive upon exercise under such amendment of this
     Incentive Warrant or new warrant, in lieu of each share of Common Stock
     theretofore issuable upon exercise of this Incentive Warrant hereunder, the
     kind and amount of shares of stock, other securities, money or property
     receivable upon such reclassification, change, consolidation, merger,
     mandatory share exchange, lease, sale or transfer by the holder of one
     share of Common Stock issuable upon exercise of the Incentive Warrant had
     this Incentive Warrant been exercised immediately prior to such
     reclassification, change, consolidation, merger, mandatory share exchange
     or sale or transfer (without giving effect to the limitation on ownership
     set forth in Section 3 hereof), and an appropriate provision for the
     foregoing shall be made by the Company as part of any such event. Such
     amended Incentive Warrant or new warrant shall provide for adjustments that
     shall be as nearly equivalent as may be practicable to the adjustments
     provided for in this Section 6. The provisions of this Section 6(a) shall
     similarly apply to successive reclassifications, changes, consolidations,
     mergers, mandatory share exchanges, sales, transfers and leases.

(b)  Subdivision or Combination of Shares; Stock Dividends. If the Company, at
     -----------------------------------------------------
     any time while this Incentive Warrant is unexpired and not exercised in
     full, shall subdivide its Common Stock, combine its Common Stock, pay a
     dividend in its Capital Shares, or make any other distribution of its
     Capital Shares, then the Exercise Price shall be adjusted, as of the date
     the Company shall take a record of the holders of its Capital Shares for
     the purpose of effecting such subdivision, combination or dividend or other
     distribution (or if no such record is taken, as of the effective date of
     such subdivision, combination, dividend or other distribution), to that
     price determined by multiplying the Exercise Price in effect immediately
     prior to such subdivision, combination, dividend or other distribution by a
     fraction:

(i)  the numerator of which shall be the total number of Outstanding Capital
     Shares immediately prior to such subdivision, combination, dividend or
     other distribution, and

(ii) the denominator of which shall be the total number of Outstanding Capital
     Shares immediately after such subdivision, combination, dividend or other
     distribution. The provisions of this Section 6(b) shall not apply under any
     of the circumstances for which an adjustment is made pursuant to Section
     6(a).

(c)  Liquidating Dividends, Etc. If the Company, at any time while this
     ---------------------------
     Incentive Warrant is unexpired and not exercised in full, makes a
     distribution of its assets or evidences of indebtedness to the holders of
     its Capital Shares as a dividend in liquidation or by way of return of
     capital or other than as a dividend payable out of earnings or surplus
     legally

<PAGE>

     available for dividends under applicable law or any distribution to such
     holders made in respect of the sale of all or substantially all of the
     Company's assets, or any spin-off of any of the Company's lines of
     business, divisions or subsidiaries (other than under the circumstances
     provided for in the foregoing subsections (a) and (b)), then the Warrant
     Holder shall be entitled to receive upon such exercise of the Incentive
     Warrant in addition to the Incentive Warrant Shares receivable in
     connection therewith, and without payment of any consideration other than
     the Exercise Price, an amount in cash equal to the value of such
     distribution per Capital Share multiplied by the number of Incentive
     Warrant Shares that, on the record date for such distribution, are issuable
     upon such exercise of the Incentive Warrant (without giving effect to the
     limitation on ownership set forth in Section 3 hereof), and an appropriate
     provision therefor shall be made by the Company as part of any such
     distribution. The value of a distribution that is paid in other than cash
     shall be determined in good faith by the Board of Directors of the Company.

(d)  Adjustment of Number of Shares. Upon each adjustment of the Exercise Price
     ------------------------------
     pursuant to any provisions of this Section 6, the number of Incentive
     Warrant Shares issuable hereunder at the option of the Warrant Holder shall
     be calculated, to the nearest one hundredth of a whole share, multiplying
     the number of Incentive Warrant Shares issuable prior to an adjustment by a
     fraction:

(i)  the numerator of which shall be the Exercise Price before any adjustment
     pursuant to this Section 6; and

(ii) the denominator of which shall be the Exercise Price after such adjustment.

(e)  Other Action Affecting Capital Shares. In the event after the date hereof
     -------------------------------------
     the Company shall take any action affecting the number of Outstanding
     Capital Shares, other than an action specifically described in any of the
     foregoing subsections (a) through (c) hereof, inclusive (including, without
     limitation, a subdivision or combination of Common Stock, or the payment of
     a dividend in its Capital Shares or any other distribution), that in the
     reasonable opinion of the Warrant Holder would have a materially adverse
     effect upon the rights of the Warrant Holder at the time of exercise of the
     Incentive Warrant, the Exercise Price shall be adjusted in such manner and
     at such time as the Board of Directors on the advice of the Company's
     independent public accountants shall in good faith determine to be
     equitable in the circumstances.

(f)  Notice of Certain Actions. In the event the Company shall, at a time while
     -------------------------
     the Incentive Warrant is unexpired and outstanding, take any action
     pursuant to subsections (a) through (e) of this Section 6 that may result
     in an adjustment of the Exercise Price, the Company shall notify the
     Warrant Holder of such action 10 days in advance of its effective date in
     order to afford to the Warrant Holder an opportunity to exercise the
     Incentive Warrant prior to such action becoming effective.

(g)  Notice of Adjustments. Whenever the Exercise Price or number of Incentive
     ---------------------
     Warrant Shares shall be adjusted pursuant to Section 6 hereof, the Company
     shall promptly deliver by facsimile, with the original delivered by express
     courier service in accordance with Section 11 hereof, a certificate, which
     shall be signed by the Company's President or a Vice

<PAGE>

     President and by its Treasurer or Assistant Treasurer or its Secretary or
     Assistant Secretary, setting forth in reasonable detail the event requiring
     the adjustment, the amount of the adjustment, the method by which such
     adjustment was calculated (including a description of the basis on which
     the Company's Board of Directors made any determination hereunder), and the
     Exercise Price and number of Incentive Warrant Shares purchasable at that
     Exercise Price after giving effect to such adjustment.

Section 7.  No Impairment. The Company will not, by amendment of its Certificate
            -------------
     or By-Laws or through any reorganization, transfer of assets,
     consolidation, merger, dissolution, issue or sale of securities or any
     other voluntary action, avoid or seek to avoid the observance or
     performance of any of the terms of this Incentive Warrant, but will at all
     times in good faith assist in the carrying out of all such terms and in the
     taking of all such action as may be necessary or appropriate in order to
     protect the rights of the Warrant Holder against impairment. Without
     limiting the generality of the foregoing, the Company (a) will not increase
     the par value of any Incentive Warrant Shares above the amount payable
     therefor on such exercise, and (b) will take all such action as may be
     reasonably necessary or appropriate in order that the Company may validly
     and legally issue fully paid and nonassessable Incentive Warrant Shares on
     the exercise of this Incentive Warrant.

Section 8.  Rights As Stockholder. Prior to exercise of this Incentive Warrant
            ---------------------
     and except as provided in Section 6 hereof, the Warrant Holder shall not be
     entitled to any rights as a stockholder of the Company with respect to the
     Incentive Warrant Shares, including (without limitation) the right to vote
     such shares, receive dividends or other distributions thereon or be
     notified of stockholder meetings. However, in the event of any taking by
     the Company of a record of the holders of any class of securities for the
     purpose of determining the holders thereof who are entitled to receive any
     dividend (other than a cash dividend) or other distribution, any right to
     subscribe for, purchase or otherwise acquire any shares of stock of any
     class or any other securities or property, or to receive any other right,
     the Company shall mail to each Warrant Holder, at least 10 days prior to
     the date specified therein, a notice specifying the date on which any such
     record is to be taken for the purpose of such dividend, distribution or
     right, and the amount and character of such dividend, distribution or
     right.

Section 9.  Replacement of Incentive Warrant. Upon receipt of evidence
            --------------------------------
     reasonably satisfactory to the Company of the loss, theft, destruction or
     mutilation of the Incentive Warrant and, in the case of any such loss,
     theft or destruction of the Incentive Warrant, upon delivery of an
     indemnity agreement or security reasonably satisfactory in form and amount
     to the Company or, in the case of any such mutilation, on surrender and
     cancellation of such Incentive Warrant, the Company at its expense will
     execute and deliver, in lieu thereof, a new Incentive Warrant of like
     tenor.

Section 10. Restricted Securities.
            ---------------------

(a)  Registration or Exemption Required. This Incentive Warrant has been issued
     ----------------------------------
     in a transaction exempt from the registration requirements of the
     Securities Act in reliance upon Section 4(2) of the Securities Act. This
     Incentive Warrant and the Incentive Warrant Shares issuable upon exercise
     of this Incentive Warrant may not be resold except pursuant to an effective

<PAGE>

     registration statement or an exemption to the registration requirements of
     the Securities Act and applicable state laws.

(b)  Legend. Any replacement Incentive Warrants issued pursuant to Section 2
     ------
     hereof and any Incentive Warrant Shares issued upon exercise hereof, shall
     bear the following legend:

                  "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
                  (THE "SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES
                  LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM
                  THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
                  OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST
                  OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
                  TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE
                  DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
                  STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A
                  TRANSACTION WHICH IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
                  REGISTRATION. THE HOLDER OF THIS CERTIFICATE IS THE
                  BENEFICIARY OF CERTAIN OBLIGATIONS OF DAUPHIN TECHNOLOGY, INC.
                  SET FORTH IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF
                  SEPTEMBER 28, 2001, AS AMENDED BY AMENDMENT TO SECURITIES
                  PURCHASE AGREEMENT, DATED AS OF SEPTEMBER 28, 2001, BETWEEN
                  DAUPHIN TECHNOLOGY, INC. AND CRESCENT INTERNATIONAL LTD. A
                  COPY OF THE PORTION OF THE AFORESAID AGREEMENT EVIDENCING SUCH
                  OBLIGATIONS MAY BE OBTAINED FROM DAUPHIN TECHNOLOGY, INC.'S
                  EXECUTIVE OFFICES."

                  Removal of such legend shall be in accordance with the legend
removal provisions in the Agreement.

(c)  No Other Legend or Stock Transfer Restrictions. No legend other than the
     ----------------------------------------------
     one specified in paragraph (b) of this Section 10 has been or shall be
     placed on the share certificates representing the Incentive Warrant Shares
     and no instructions or "stop transfer orders," so called, "stock transfer
                             --------------------               --------------
     restrictions" or other restrictions have been or shall be given to the
     ------------
     Company's transfer agent with respect thereto other than as expressly set
     forth in this Section 10.

(d)  Assignment. Assuming the conditions of Section 10(a) above regarding
     ----------
     registration or exemption have been satisfied, the Warrant Holder may sell,
     transfer, assign, pledge or otherwise dispose of this Incentive Warrant, in
     whole or in part. The Warrant Holder shall deliver a written notice to the
     Company substantially in the form of the assignment form attached hereto as
     Exhibit B (the "Assignment Notice") indicating the person or persons to
                     -----------------
     whom this Incentive Warrant shall be assigned and the respective number of
     warrants to be assigned to each assignee. The Company shall effect the
     assignment within ten days of receipt of such Assignment Notice, and shall
     deliver to the assignee(s) designated by the

<PAGE>

     Warrant Holder a Incentive Warrant or Incentive Warrants of like tenor and
     terms for the specified number of shares.

(e)  Investor's Compliance. Nothing in this Section 10 shall affect in any way
     ---------------------
     the Investor's  obligations under any agreement to comply with all
     applicable securities laws upon resale of the Common Stock.

Section 11. Notices. All notices, demands, requests, consents, approvals, and
            -------
     other communications required or permitted hereunder shall be in writing
     and shall be deemed duly given (i) upon delivery if hand delivered at the
     address designated below (if delivered on a business day during normal
     business hours where such notice is to be received), or the first business
     day following such delivery (if delivered other than on a business day
     during normal business hours where such notice is to be received), (ii) on
     the fifth business day after deposit into the mail, if deposited in the
     mail, registered or certified, return receipt requested, postage prepaid,
     addressed to the address designated below, (iii) upon delivery if delivered
     by reputable express courier service to the address designated below, or
     (iv) upon confirmation of transmission if transmitted by facsimile to the
     facsimile number designated below (if delivered on a business day during
     normal business hours where such notice is to be received), or the first
     business day following such delivery (if delivered other than on a business
     day during normal business hours where such notice is to be received). The
     addresses and facsimile numbers for such communications shall be:

         if to the Company:

                       Dauphin Technology, Inc.
                       800 E. Northwest Highway
                       Suite 950
                       Palatine, IL 60067
                       Attention: Christopher L. Geier
                       Telephone: (847) 358-4406
                       Facsimile: (847) 358-4407

         with a copy (which shall not constitute notice) to:

                       Rieck & Crotty, P.C.
                       55 West Monroe Street, Suite 3390
                       Chicago, IL 60603-5062
                       Attention: Ronald P. Duplack, Esq.
                       Telephone: (312) 726-4646
                       Facsimile: (312) 726-0647

<PAGE>

         if to the Investor:

                        Crescent International Ltd.
                        c/o GreenLight (Switzerland) SA
                        84, av Louis-Casai
                        P.O. Box 42
                        1216 Geneva, Cointrin
                        Switzerland
                        Attention: Mel Craw/Maxi Brezzi
                        Telephone: +41 22 791 71 69
                        Facsimile: +41 22 929 53 94

         with a copy (which shall not constitute notice) to:

                        Clifford Chance Rogers & Wells LLP
                        200 Park Avenue
                        New York, NY 10166
                        Attention: Earl S. Zimmerman, Esq.
                        Telephone: (212) 878-8000
                        Facsimile: (212) 878-8375

            Either party hereto may from time to time change its address or
facsimile number for notices under this Section 11 by giving at least ten (10)
days' prior written notice of such changed address or facsimile number to the
other party hereto.

Section 12. Miscellaneous. This Incentive Warrant and any term hereof may be
            -------------
    changed, waived, discharged or terminated only by an instrument in writing
    signed by the party against which enforcement of such change, waiver,
    discharge or termination is sought. The headings in this Incentive Warrant
    are for purposes of reference only, and shall not limit or otherwise affect
    any of the terms hereof. The invalidity or unenforceability of any
    provision hereof shall in no way affect the validity or enforceability of
    any other provision.

            IN WITNESS WHEREOF, this Incentive Warrant was duly executed by the
undersigned, thereunto duly authorized, as of the date first set forth above.

DAUPHIN TECHNOLOGY, INC.

By: ______________________________________
    Name:  Christopher L. Geier
    Title: Executive Vice President

Attested:

By: ______________________________________
    Name:
    Title: Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}]]