U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940 [_] Check box if no longer subject of Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). -------------------------------------------------------------------------------- 1. Name and Address of Reporting Person* BALDWIN, III L. THOMAS -------------------------------------------------------------------------------- (Last) (First) (Middle) 141 WEST JACKSON BOULEVARD, SUITE #2850 -------------------------------------------------------------------------------- (Street) CHICAGO IL 60606 -------------------------------------------------------------------------------- (City) (State) (Zip) NHANCEMENT TECHNOLOGIES, INC. (NHAN) -------------------------------------------------------------------------------- 2. Issuer Name and Ticker or Trading Symbol -------------------------------------------------------------------------------- 3. IRS Identification Number of Reporting Person, if an Entity (Voluntary) JANUARY, 2001 -------------------------------------------------------------------------------- 4. Statement for Month/Year -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 5. If Amendment, Date of Original (Month/Year) -------------------------------------------------------------------------------- 6. Relationship of Reporting Person to Issuer (Check all applicable) [X] Director [X] 10% Owner [_] Officer (give title below) [_] Other (specify below) -------------------------------------------------------------------------------- 7. Individual or Joint/Group Filing (Check applicable line) [X] Form filed by one Reporting Person [_] Form filed by more than one Reporting Person -------------------------------------------------------------------------------- ================================================================================ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 6. 4. 5. Owner- Securities Acquired (A) or Amount of ship 3. Disposed of (D) Securities Form: 7. Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of 2. Code ------------------------------- Owned at End (D) or Indirect 1. Transaction (Instr. 8) (A) of Month Indirect Beneficial Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership (Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4) ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCK, $.01 par value 1/11/01 J 1,500,000 D (1) 1,087,675(1)(2) D ------------------------------------------------------------------------------------------------------------------------------------ 1,500,000(1) I By: Baldwin Partners, L.P. ------------------------------------------------------------------------------------------------------------------------------------ 586,490 I By: Rosenthal Collins Group, L.L.C. ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== * If the Form is filed by more than one Reporting Person, see Instruction 4(b)(v). Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (1) On January 11, 2001, 1,500,000 shares were directed to be transferred from this reporting person to Baldwin Partners, L.P., a family limited partnership in which this reporting person has a pecuniary interest. All such shares were transferred at cost. (2) In this reporting person's Form 4 for December, 2000, the total amount of securities owned beneficially at the end of the month was reported on Table I as 3,733,424. This amount included the derivative securities reported on Table II (since they are immediately convertible and exercisable). The amounts reported on this Table I do not include such derivative securities as they are reported on Table II. Other than the transfers to Baldwin Partners, L.P. reported on this Table I and on Table II, the aggregate amounts of securities did not change during January, 2001. (Print or Type Responses) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) ================================================================================ 9. Owner- Number ship of Form 2. Deriv- of Conver- 5. 7. ative Deriv- 11. sion Number of Title and Amount Secur- ative Nature or Derivative 6. of Underlying 8. ities Secur- of Exer- 4. Securities Date Securities Price Bene- ity: In- cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene- 1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner- Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr. (Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4) ------------------------------------------------------------------------------------------------------------------------------------ Series B Common Preferred Stock (1) 10/31/00 P 35,000 (2) Stock 350,000(1) $100 35,000 D ------------------------------------------------------------------------------------------------------------------------------------ Common Stock Common (by Baldwin Warrants (3) $6 01/10/01 J 300,000 (2) 7/31/01 Stock 300,000 Services 300,000 I Partners, L.P.) ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== Explanation of Responses: (1) Conversion price is the lesser of (i) $13.50 per share or (ii) 90% of the average closing bid prices for the 10 trading days immediately preceding the date of conversion; provided, that such conversion price shall not be less than $10.00. Number of underlying shares shown based on closing bid price on 1/31/01. (2) Immediately convertible or exercisable at the election of the holder. (3) On January 10, 2001, these warrants were directed to be transferred from this reporting person to Baldwin Partners, L.P., a family limited partnership in which this reporting person has a pecuniary interest. Such securities were transferred at cost. /s/ L. Thomas Baldwin III 2/09/01 --------------------------------------------- ----------------------- **Signature of Reporting Person Date ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure.