<PAGE>
                                                                 EXHIBIT 4.12

                          NHANCEMENT TECHNOLOGIES INC.



Issued as of the 7TH DAY                   (1)  Aggregate Price: $51,875.00
of June, 1999                              (2)  Initial Warrant Price:  $1.0375
                                           (3)  Number of Shares Initially
                                           Subject to Warrant: 50,000

NEITHER THIS WARRANT, NOR THE COMMON STOCK TO BE ISSUED UPON EXERCISE HEREOF,
HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("1933
SECURITIES ACT"), OR QUALIFIED OR REGISTERED UNDER CALIFORNIA OR OTHER
APPLICABLE SECURITIES LAWS ("STATE SECURITIES LAWS"), AND THIS WARRANT HAS BEEN,
AND THE COMMON STOCK TO BE ISSUED UPON EXERCISE HEREOF WILL BE, ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH, ANY
DISTRIBUTION THEREOF. NO SUCH SALE OR OTHER DISPOSITION MAY BE MADE WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 SECURITIES ACT AND COMPLIANCE
WITH THE APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL, REASONABLY
SATISFACTORY TO THE ISSUER AND ITS COUNSEL, THAT SAID REGISTRATION IS NOT
REQUIRED UNDER THE 1933 SECURITIES ACT AND THAT APPLICABLE STATE SECURITIES LAWS
HAVE BEEN SATISFIED.


                              COMMON STOCK WARRANT
                            (IMMEDIATELY EXERCISABLE)

         This certifies that James S. Gillespie, ("PURCHASER"), whose address
for notice is located 198 Country Club Drive #35, Incline Village, NV 89451, or
any party to whom this Warrant is assigned in compliance with the terms hereof
(Purchaser and any such assignee being hereinafter sometimes referenced as
"HOLDER"), is entitled to subscribe for and purchase, during the period
commencing at the issue date set forth above and ending at 5:00 p.m.,
California, local time, on the third (3rd) anniversary of such issue date, the
number of shares of fully paid and nonassessable Common Stock ("COMMON STOCK")
of NHANCEMENT TECHNOLOGIES INC, A DELAWARE CORPORATION (the "COMPANY"), that
have an aggregate purchase price equal to the Aggregate Price as defined below.
The purchase price of each such share shall be equal to the Warrant Price, as
defined below.

                                    ARTICLE 1
                                   DEFINITIONS

1.1               "AGGREGATE PRICE" shall be $51,875.00.

1.2               "WARRANT PRICE" shall be $1.0375, as adjusted herein.


                                    ARTICLE 2
                              EXERCISE AND PAYMENT

2.1   CASH EXERCISE. The purchase rights represented by this Warrant may be
exercised by Holder, in whole or in part, by the surrender of this Warrant at
the principal office of the Company, located at the address set forth on the
signature page hereof, accompanied by the form of Notice of Cash Exercise
attached hereto as Exhibit "A-1", and by the payment to the Company, by cash
or by certified, cashier's or other check acceptable to the Company, of an
amount equal to the aggregate Warrant Price of the shares being purchased.

2.2   NET ISSUE EXERCISE. In lieu of exercising this Warrant pursuant to
Section 2.1, Holder may elect to receive shares of Common Stock equal to the
value of this Warrant determined in

<PAGE>
Common Stock Warrant
Page 2

the manner described below (or of any portion thereof remaining unexercised)
by surrender of this Warrant at the principal office of the Company together
with the form of Notice of Cashless Exercise attached hereto as Exhibit"A-2",
in which event the Company shall issue to Holder a number of shares of the
Company's Common Stock computed using the following formula:

                           X = Y (A-B)
                              ---------
                                  A

Where X = the number of shares of Common Stock to be issued to Holder.

           Y = the number of shares of Common Stock purchasable under this
                   Warrant (at the date of such calculation).

           A = the fair market value of one share of the Company's Common
                   Stock (at the date of such calculation).

           B = Warrant Price.

2.3   FAIR MARKET VALUE. For purposes of this Article II, fair market value
of one share of the Company's Common Stock shall mean:

     (i)   The average of the closing bid and asked prices of the Common Stock
     quoted in the Over-The-Counter Market Summary, the last reported sale price
     of the Common Stock or the closing price quoted on the Nasdaq National
     Market System ("NMS") or on any exchange on which the Common Stock is
     listed, whichever is applicable, as published in the Western Edition of The
     Wall Street Journal for the trading day prior to the date of determination
     of fair market value; or

     (ii)  If the Common Stock is not traded Over-The-Counter, on the NMS or on
     an exchange, the per share fair market value of the Common Stock shall be
     as determined by mutual agreement of the Company and the Holder; provided,
     however that if such agreement cannot be reached within twenty (20)
     calendar days, such value shall be determined by an independent appraiser
     appointed in good faith by the Company's Board of Directors. The cost of
     such appraisal shall be borne equally by the Company and the Holder. Such
     appraiser shall meet the following criteria: (a) it shall not be associated
     or affiliated with the Company in any fashion and shall not have previously
     provided services to the Company; (b) the appraiser shall have reasonable
     qualifications to appraise the value of the Common Stock; (c) it is not
     (and none of its affiliates is) a promoter, director or officer of the
     Company or any of its affiliates or an underwriter with respect to any of
     the securities of the Company; and (d) it does not provide any advice or
     opinions of the Company except as an appraiser under this section. In the
     event such an appraisal is required it should be conducted under the
     following procedures: the Company shall select the appraiser within ten
     (10) days of receipt of written notice from the Holder that agreement
     cannot be reached and the Company shall submit the name of such appraiser
     to Holder. Twenty (20) days after selection of the appraiser, the Company
     and the Holder shall each submit to the appraiser a single value
     representing such party's contention as to the fair market value of one
     share of the Company's Common Stock. Within fifteen (15) days after receipt
     of the submission of the Company and the Holder, the appraiser shall select
     one of the two values submitted by the parties, and such value shall be the
     fair market value of one share of the Common Stock for purpose of this
     Warrant. The appraiser shall have no discretion to take any action other
     than selection of one of the two values submitted to the appraiser. The
     parties may submit to the appraiser and one another, at the time they
     submit their respective single values, such supporting documentation as
     they deem necessary or appropriate. The parties shall have the opportunity
     seven (7) business days after receipt of the other party's proposed
     valuation and supporting documentation to provide the appraiser and each
     other with supplemental written information. The appraiser may, in its
     discretion, hold a single six (6) hour hearing on valuation issues. If a
     hearing is held, each party shall be allocated three (3) hours. The
     appraiser may conduct the hearing in

<PAGE>
Common Stock Warrant
Page 3

     accordance with any rules of procedure it deems appropriate. The value
     selected by the appraiser shall be final and binding upon the parties
     without any further right of appeal.

2.4   STOCK CERTIFICATES. In the event of any exercise of the rights
represented by this Warrant, certificates for the shares of Common Stock so
purchased shall be delivered to Holder within a reasonable time and, unless
this Warrant has been fully exercised or has expired, a new Warrant
representing the remaining unexercised Aggregate Price shall also be issued
to Holder at such time.

2.5   AUTOMATIC EXERCISE. To the extent this Warrant is not previously
exercised, and if the fair market value of one share of the Company's Common
Stock is greater than the Warrant Price, as adjusted, this Warrant shall be
deemed automatically exercised in accordance with Section 2.2 hereof (even if
not surrendered) immediately before its expiration. For purposes of such
automatic exercise, the fair market value of one share of the Company's
Common Stock upon such expiration shall be the fair market value determined
pursuant to Section 2.3 above. To the extent this Warrant or any portion
thereof is deemed automatically exercised pursuant to this Section 2.5, the
Company agrees to notify Holder within a reasonable period of time of the
number of shares of the Company's Common Stock, if any, Holder is to receive
by reason of such automatic exercise.

2.6   STOCK FULLY PAID; RESERVATION OF SHARES. The Company covenants and
agrees that all Common Stock which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be fully paid and
nonassessable and free from all taxes, liens and charges with respect to the
issue thereof (excluding taxes based on the income of Holder). The Company
further covenants and agrees that during the period within which the rights
represented by this Warrant may be exercised, the Company will at all times
have authorized and reserved for issuance a sufficient number of shares of
its Common Stock or other securities as would be required upon the full
exercise of the rights represented by this Warrant (including conversion of
all such Common Stock issuable hereunder).

2.7   FRACTIONAL SHARES. No fractional share of Common Stock will be issued
in connection with any exercise hereof; in lieu of a fractional share upon
complete exercise hereof, Holder may purchase a whole share by delivering
payment equal to the appropriate portion of the then effective Warrant Price.


                                    ARTICLE 3
      CERTAIN ADJUSTMENTS OF NUMBER OF SHARES PURCHASABLE AND WARRANT PRICE

      The number and kind of securities purchasable upon the exercise of this
Warrant and the Warrant Price shall be subject to adjustment from time to time
upon the happening of certain events, as follows:

3.1   RECLASSIFICATION, CONSOLIDATION OR MERGER. In case of: (i) any
reclassification or change of outstanding securities issuable upon exercise
of this Warrant; (ii) any consolidation or merger of the Company with or into
another corporation (other than a merger with another corporation in which
the Company is a continuing corporation and which does not result in any
reclassification, change or exchange of outstanding securities issuable upon
exercise of this Warrant); or (iii) any sale or transfer to another
corporation of all, or substantially all, of the property of the Company,
then, and in each such event, the Company or such successor or purchasing
corporation, as the case may be, shall execute a new Warrant of like form,
tenor and effect and which will provide that Holder shall have the right to
exercise such new Warrant and purchase upon such exercise, in lieu of each
share of Common Stock theretofore issuable upon exercise of this Warrant, the
kind and amount of securities, money and property receivable upon such
reclassification, change, consolidation, merger, sale or transfer by a holder
of one share of Common Stock issuable upon exercise of this Warrant had this
Warrant been exercised immediately prior to such reclassification, change,
consolidation, merger, sale or transfer. Such

<PAGE>
Common Stock Warrant
Page 4

new Warrant shall be as nearly equivalent in all substantive respects as
practicable to this Warrant and the adjustments provided in this Article III
and the provisions of this Section 3.1, shall similarly apply to successive
reclassifications, changes, consolidations, mergers, sales and transfers.

3.2   SUBDIVISION OR COMBINATION OF SHARES. If the Company shall at any time
while this Warrant remains outstanding and less than fully exercised: (i)
divide its Company Stock, the Warrant Price shall be proportionately reduced;
or (ii) shall combine shares of its Common Stock, the Warrant Price shall be
proportionately increased.

3.3   STOCK DIVIDENDS. If the Company, at any time while this Warrant is
outstanding and unexpired, shall pay a dividend payable in, or make any other
distribution to holders of, Common Stock (except any distribution described
in Sections 3.1 and 3.2 hereof) then the Warrant Price shall be adjusted to
that price determined by multiplying the Warrant Price then in effect by a
fraction, the numerator of which shall be the total number of shares of
Common Stock outstanding immediately prior to such dividend or distribution,
and the denominator of which shall be the total number of shares of Common
Stock outstanding immediately after such dividend or distribution.

3.4   OTHER ACTION AFFECTING COMMON STOCK. If the Company takes any action
affecting its Common Stock after the date hereof (including dividends and
distributions), other than an action described in any of Sections 3.1 and 3.2
hereof, which would have an adverse effect upon Holder's rights hereunder,
the Warrant Price shall be adjusted downward in such manner and at such time
as the Board of Directors of the Company shall in good faith determine to be
equitable under the circumstances.

3.5   TIME OF ADJUSTMENTS TO THE WARRANT PRICE. All adjustments to the
Warrant Price and the number of shares purchasable hereunder, unless
otherwise specified herein, shall be effective as of the earlier of:

     (i)    the date of issue of the security causing the adjustment;

     (ii)   the date of sale of the security causing the adjustment;

     (iii)  the effective date of a division or combination of shares;

     (iv)   the record date of any action of holders of any class of the
     Company's capital stock taken for the purpose of entitling shareholders to
     receive a distribution or dividend payable in equity securities, provided
     that such division, combination, distribution or dividend actually occurs.

3.6   NOTICE OF ADJUSTMENTS. In each case of an adjustment in the Warrant
Price and the number of shares purchasable hereunder, the Company, at its
expense, shall cause the Chief Financial Officer of the Company to compute
such adjustment and prepare a certificate setting forth such adjustment and
showing in detail the facts upon which such adjustment is based. The Company
shall promptly mail a copy of each such certificate to Holder pursuant to
Section 6.8 hereof.

3.7   DURATION OF ADJUSTED WARRANT PRICE. Following each adjustment of the
Warrant Price, such adjusted Warrant Price shall remain in effect until a
further adjustment of the Warrant Price.

3.8   ADJUSTMENT OF NUMBER OF SHARES. Upon each adjustment of the Warrant
Price pursuant to this Article III, the number of shares of Common Stock
purchasable hereunder shall be adjusted to the nearest whole share, to the
number obtained by dividing the Aggregate Price by the Warrant Price as
adjusted.

<PAGE>
Common Stock Warrant
Page 5

                                    ARTICLE 4
                           TRANSFER, EXCHANGE AND LOSS

4.1   TRANSFER. This Warrant is transferable on the books of the Company at
its principal office by the registered Holder hereof upon surrender of this
Warrant properly endorsed, subject to compliance with federal and state
securities laws. The Company shall issue and deliver to the transferee a new
Warrant or Warrants representing the Warrants so transferred. Upon any
partial transfer, the Company will issue and deliver to Holder a new Warrant
or Warrants with respect to the Warrants not so transferred. Notwithstanding
the foregoing, Holder shall not be entitled to transfer a number of shares or
an interest in this Warrant representing less than five percent (5%) of the
aggregate shares initially covered by this Warrant (as presently constituted,
with appropriate adjustment being made in the event of stock splits,
combinations, reorganizations and the like occurring after the issue date
hereof). Any transferee shall be subject to the same restrictions on transfer
with respect to this Warrant as the Purchaser.

4.2   SECURITIES LAWS. Upon any issuance of shares of Common Stock upon
exercise of this Warrant, it shall be the Company's responsibility to comply
with the requirements of: (1) the Securities Act of 1933, as amended; (2) the
Securities Exchange Act of 1934, as amended; (3) any applicable listing
requirements of any national securities exchange; (4) any state securities
regulation or "Blue Sky" laws; and (5) requirements under any other law or
regulation applicable to the issuance or transfer of such shares. If required
by the Company, in connection with each issuance of shares of Common Stock
upon exercise of this Warrant, the Holder will give: (i) assurances in
writing, satisfactory to the Company, that such shares are not being
purchased with a view to the distribution thereof in violation of applicable
laws, (ii) sufficient information, in writing, to enable the Company to rely
on exemptions from the registration or qualification requirements of
applicable laws, if available, with respect to such exercise, and (iii) its
cooperation to the Company in connection with such compliance.

4.3   EXCHANGE. This Warrant is exchangeable at the principal office of the
Company for Warrants which represent, in the aggregate, the Aggregate Price
hereof; each new Warrant to represent the right to purchase such portion of
the Aggregate Price as Holder shall designate at the time of such exchange.
Each new Warrant shall be identical in form and content to this Warrant,
except for appropriate changes in the number of shares of Common Stock
covered thereby, the percentage stated in Section 4.1 above, and any other
changes which are necessary in order to prevent the Warrant exchange from
changing the respective rights and obligations of the Company and the Holder
as they existed immediately prior to such exchange.

4.4   LOSS OR MUTILATION. Upon receipt by the Company of evidence
satisfactory to it of the ownership of, and the loss, theft, destruction or
mutilation of, this Warrant and (in the case of loss, theft, or destruction)
of indemnity satisfactory to it, and (in the case of mutilation) upon
surrender and cancellation hereof, the Company will execute and deliver in
lieu hereof a new Warrant.


                                    ARTICLE 5
                                  HOLDER RIGHTS

5.1   NO SHAREHOLDER RIGHTS UNTIL EXERCISE. No Holder hereof, solely by
virtue hereof, shall be entitled to any rights as a shareholder of the
Company. Holder shall have all rights of a shareholder with respect to
securities purchased upon exercise hereof at the time: (i) the cash exercise
price for such securities is delivered pursuant to Section 2.1 hereof and
this Warrant is surrendered, (ii) of delivery of notice of cashless exercise
pursuant to Section 2.2 hereof and this Warrant is surrendered, or (iii) of
automatic exercise hereof (even if not surrendered) pursuant to Section 2.5
hereof.

<PAGE>
Common Stock Warrant
Page 6

                                    ARTICLE 6
                                  MISCELLANEOUS

6.1   GOVERNMENTAL APPROVALS. The Company will from time to time take all
action which may be necessary to obtain and keep effective any and all
permits, consents and approvals of governmental agencies and authorities and
securities acts filings under federal and state laws, which may be or become
requisite in connection with the issuance, sale, and delivery of this
Warrant, and the issuance, sale and delivery of the Common Stock or other
securities or property issuable or deliverable upon exercise of this Warrant.

6.2   GOVERNING LAWS. IT IS THE INTENTION OF THE PARTIES HERETO THAT EXCEPT
AS SET FORTH BELOW, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, U.S.A.
(IRRESPECTIVE OF ITS CHOICE OF LAW PRINCIPLES) SHALL GOVERN THE VALIDITY OF
THIS WARRANT, THE CONSTRUCTION OF ITS TERMS, AND THE INTERPRETATION AND
ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HERETO.

6.3   BINDING UPON SUCCESSORS AND ASSIGNS. Subject to, and unless otherwise
provided in, this Warrant, each and all of the covenants, terms, provisions,
and agreements contained herein shall be binding upon, and inure to the
benefit of the permitted successors, executors, heirs, representatives,
administrators and assigns of the parties hereto.

6.4   SEVERABILITY. If any one or more provisions of this Warrant, or the
application thereof, shall for any reason and to any extent be invalid or
unenforceable, the remainder of this Warrant and the application of such
provisions to other persons or circumstances shall be interpreted so as best
to reasonably effect the intent of the parties hereto. The parties further
agree to replace any such void or unenforceable provisions of this Warrant
with valid and enforceable provisions which will achieve, to the extent
possible, the economic, business and other purposes of the void or
unenforceable provisions.

6.5   DEFAULT, AMENDMENT AND WAIVERS. This Warrant may be amended upon the
written consent of the Company and the holders in the aggregate of the right
to purchase a majority of the number of unexercised shares covered by the
Warrant initially issued by the Company pursuant to the Consulting Agreement.
The waiver by a party of any breach hereof for default in payment of any
amount due hereunder or default in the performance hereof shall not be deemed
to constitute a waiver of any other default or any succeeding breach or
default. The failure to cure any breach of any term of this Warrant within
ten (10) days of written notice thereof shall constitute an event of default
under this Warrant.

6.6   NO WAIVER. The failure of any party to enforce any of the provisions
hereof shall not be construed to be a waiver of the right of such party
thereafter to enforce such provisions.

6.7   ATTORNEYS' FEES. Should suit be brought to enforce or interpret any
part of this Warrant, the prevailing party shall be entitled to recover, as
an element of the costs of suit and not as damages, reasonable attorneys'
fees to be fixed by the court (including without limitation, costs, expenses
and fees on any appeal). The prevailing party shall be the party entitled to
recover its costs of suit, regardless of whether such suit proceeds to final
judgment. A party not entitled to recover its costs shall not be entitled to
recover attorneys' fees. No sum for attorneys' fees shall be counted in
calculating the amount of a judgment for purposes of determining if a party
is entitled to recover costs or attorneys' fees.

6.8   NOTICES. Whenever any party hereto desires or is required to give any
notice, demand, or request with respect to this Warrant, each such
communication shall be in writing and shall be effective only if it is
delivered by personal service or mailed, United States certified mail,
postage prepaid, return receipt requested, addressed as follows:

<PAGE>
Common Stock Warrant
Page 7

                  Company:          NHancement Technologies Inc.
                                    39420 Liberty Street
                                    Suite 250
                                    Fremont, California 94538
                                    Attn:  Douglas S. Zorn

                  Holder:           James S. Gillespie
                                    198 Country Club Drive #35
                                    Incline Village, Nevada 89451

Such communications shall be effective when they are received by the
addressee thereof; but if sent by certified mail in the manner set forth
above, they shall be effective three (3) business days after being deposited
in the United States mail. Any party may change its address for such
communications by giving notice thereof to the other party in conformity with
this Section.

6.9   TIME.  Time is of the essence of this Warrant.

6.10  CONSTRUCTION OF AGREEMENT. A reference in this Warrant to any Section
shall include a reference to every Section the number of which begins with
the number of the Section to which reference is specifically made (E.G., a
reference to Section 3 shall include a reference to Sections 3.5 and 3.7).
The titles and headings herein are for reference purposes only and shall not
in any manner affect the interpretation of this Warrant.

6.11  NO ENDORSEMENT. Holder understands that no federal or state securities
administrator has made any finding or determination relating to the fairness
of investment in the Company or purchase of the Common Stock hereunder and
that no federal or state securities administrator has recommended or endorsed
the offering of securities by the Company hereunder.

6.12  PRONOUNS. All pronouns and any variations thereof shall be deemed to
refer to the masculine, feminine or neuter, singular or plural, as the
identity of the person, persons, entity or entities may require.

6.13  FURTHER ASSURANCES. Each party agrees to cooperate fully with the other
parties and to execute such further instruments, documents and agreements and
to give such further written assurances, as may be reasonably requested by
any other party to better evidence and reflect the transactions described
herein and contemplated hereby, and to carry into effect the intents and
purposes of this Warrant.

                           NHancement Technologies Inc., a Delaware corporation


                           By:   /s/ DOUGLAS S. ZORN
                               --------------------------------------------
                                 Douglas S. Zorn, Chief Executive Officer

<PAGE>
Common Stock Warrant
Page 8

                                   EXHIBIT A-1

                   NOTICE OF EXERCISE OF COMMON STOCK WARRANT
                        BY CASH PAYMENT OF WARRANT PRICE

                                DATE: ____________

<TABLE>
<S>                                         <C>
___________________________                 Aggregate Price of Warrant
___________________________                 Before Exercise:  $________________
___________________________                 Aggregate Price
                                            Being Exercised:  $________________
                                            Attention:  Chief Financial Officer

                                            Warrant Price:    $________________per share

                                            Number of Shares of Common Stock to be Issued
                                            Under this Notice:_______________________

                                            Remainder Aggregate
                                            Price (if any) After Issuance:  $___________
</TABLE>


                                  CASH EXERCISE

Gentlemen:

         The undersigned registered Holder of the Common Stock Warrant
delivered herewith ("WARRANT"), hereby irrevocably exercises such Warrant
for, and purchases thereunder, shares of the Common Stock of NHancement
Technologies, Inc., a Delaware corporation, as provided below. Capitalized
terms used herein, unless otherwise defined herein, shall have the meanings
given in the Warrant. The portion of the Aggregate Price (as defined in the
Warrant) to be applied toward the purchase of Common Stock pursuant to this
Notice of Exercise is $______, thereby leaving a remainder Aggregate Price
(if any) equal to $______. Such exercise shall be pursuant to the cash
exercise provisions of Section 2.1 of the Warrant. Therefore, Holder makes
payment with this Notice of Exercise by way of check payable to the Company
in the amount of $______. Such check is payment in full under the Warrant for
______ shares of Common Stock based upon the Warrant Price of $______ per
share, as currently in effect under the Warrant. Holder requests that the
certificates for the purchased shares of Common Stock be issued in the name
of and delivered to "__________________", __________________. To the extent
the foregoing exercise is for less than the full Aggregate Price, a
Replacement Warrant representing the remainder of the Aggregate Price and
otherwise of like form, tenor and effect should be delivered to Holder along
with the share certificates evidencing the Common Stock issued in response to
this Notice of Exercise.

                                           By:
                                              ---------------------------------
                                                            [NAME]

                                      NOTE

         The execution to the foregoing Notice of Exercise must exactly
correspond to the name of the Holder on the Warrant.


<PAGE>
Common Stock Warrant
Page 9

                                   EXHIBIT A-2

                   NOTICE OF EXERCISE OF COMMON STOCK WARRANT
             PURSUANT TO NET ISSUE ("CASHLESS") EXERCISE PROVISIONS

                                     [DATE]

<TABLE>
<S>                                         <C>
___________________________                 Aggregate Price of Warrant
___________________________                 Before Exercise:  $________________
___________________________                 Aggregate Price
Attention:  Chief Financial Officer         Being Exercised:  $________________

                                            Warrant Price:    $________________per share

                                            Number of Shares of Common Stock to be Issued
                                            Under this Notice:_______________________

                                            Remainder Aggregate
                                            Price (if any) After Issuance:  $___________
</TABLE>


                                CASHLESS EXERCISE

Gentlemen:

         The undersigned, registered Holder of the Common Stock Warrant
delivered herewith ("WARRANT", hereby irrevocably exercises such Warrant for,
and purchases thereunder, shares of the Common Stock of NHancement
Technologies Inc., a Delaware corporation, as provided below. Capitalized
terms used herein, unless otherwise defined herein, shall have the meanings
given in the Warrant. The portion of the Aggregate Price (as defined in the
Warrant) to be applied toward the purchase of Common Stock pursuant to this
Notice of Exercise is $_____, thereby leaving a remainder Aggregate Price (if
any) equal to $_____. Such exercise shall be pursuant to the net issue
exercise provisions of Section 2.2 of the Warrant; therefore, Holder makes no
payment with this Notice of Exercise. The number of shares to be issued
pursuant to this exercise shall be determined by reference to the formula in
Section 2.2 of the Warrant which, by reference to Section 2.3, requires the
use of the current per share fair market value of the Company's Common Stock.
The current fair market value of one share of the Company's Common Stock
shall be determined in the manner provided in Section 2.3, which amount has
been determined or agreed to by Holder and the Company to be $_____, which
figure is acceptable to Holder for calculations of the number of shares of
Common Stock issuable pursuant to this Notice of Exercise [SPECIFY ANY
ALTERNATIVE ARRANGEMENTS TO THE FOREGOING, IF NECESSARY OR APPLICABLE].
Holder requests that the certificates for the purchased shares of Common
Stock be issued in the name of and delivered to "__________________",
__________________. To the extent the foregoing exercise is for less than the
full Aggregate Price of the Warrant, a replacement Warrant representing the
remainder of the Aggregate Price (and otherwise of like form, tenor and
effect) shall be delivered to Holder along with the share certificate
evidencing the Common Stock issued in response to this Notice of Exercise.

                                       By:
                                          ---------------------------
                                          [NAME]

                                      NOTE
         The execution to the foregoing Notice of Exercise must exactly
correspond to the name of the Holder on the Warrant.