SC 13G/A 1 sc13ga.txt AMENDMENT NO.2 TO SCHEDULE 13G 1 ---------------------------- OMB APPROVAL ---------------------------- OMB Number: 3235-0145 Expires: August 31, 1999 Estimated average burden hours per response....14.90 ---------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------- SCHEDULE 13G (Rule 13d-102) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13d-1(b)(c), AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(b) (Amendment No. 2)* THE PATHWAYS GROUP, INC. -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, par value $0.01 per share -------------------------------------------------------------------------------- (Title of Class of Securities) 70321D106 -------------------------------------------------------------------------------- (CUSIP Number) June 30, 2000 -------------------------------------------------------------------------------- (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which the Schedule is filed. [ ] Rule 13d-1(b). [X] Rule 13d-1(c). [ ] Rule 13d-1(d). *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). 2 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 2 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Joseph A. Jolson -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: United States Citizen -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 3,053,899 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 3,053,899 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,053,899 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 16.36% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON IN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 3 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 3 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Jolson Merchant Partners Group LLC, 94-3326326 -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 2,808,424 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 2,808,424 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,808,424 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 15.14% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON OO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 4 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 4 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Mitchum, Jones & Templeton Group, Inc. -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 470,624 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 470,624 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 470,624 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 2.91% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON CO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 5 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 5 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Mitchum, Jones & Templeton, Inc. -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Colorado -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 320,624 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 320,624 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 320,624 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 2.00% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON CO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 6 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 6 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) JMP Asset Management LLC (94-3342119) -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 2,313,300 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 2,313,300 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,313,300 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 12.78% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON OO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 7 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 7 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Harvest Opportunity Partners I, LLC -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 2,282,000 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 2,282,000 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,282,000 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 12.61% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON OO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 8 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 8 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Harvest Opportunity Partners II, LLC -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 31,300 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 31,300 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 31,300 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 0.20% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON OO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 9 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 9 of 19 Pages --------------------------------- ------------------------------ ================================================================================ 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Joseph A. Jolson 1991 Trust, ###-##-#### -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: California -------------------------------------------------------------------------------- 5. SOLE VOTING POWER NUMBER OF SHARES 245,475 BENEFICIALLY ----------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER EACH REPORTING None PERSON ----------------------------------------------------------- WITH 7. SOLE DISPOSITIVE POWER 245,475 ----------------------------------------------------------- 8. SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 245,475 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 9 EXCLUDES CERTAIN SHARES* [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 1.54% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON OO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT 10 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 10 of 19 Pages --------------------------------- ------------------------------ ITEM 1. (a) NAME OF ISSUER: The Pathways Group, Inc. (b) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES: 14201 N.E. 200th Street Woodinville, WA 98072 ITEM 2(a) NAME OF PERSON FILING: ITEM 2(b) ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE: ITEM 2(c) CITIZENSHIP: Joseph A. Jolson One Embarcadero Center Suite 2150 San Francisco, California 94111 (United States citizen) Jolson Merchant Partners Group LLC One Embarcadero Center Suite 2150 San Francisco, California 94111 (Delaware limited liability company) Mitchum, Jones & Templeton Group, Inc. One Embarcadero Center Suite 2150 San Francisco, California 94111 (Delaware corporation) Mitchum, Jones & Templeton, Inc. One Embarcadero Center Suite 2150 San Francisco, California 94111 (Colorado corporation) JMP Asset Management LLC One Embarcadero Center Suite 2150 San Francisco, California 94111 (Delaware limited liability company) 11 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 11 of 19 Pages --------------------------------- ------------------------------ Harvest Opportunity Partners I, LLC One Embarcadero Center Suite 2150 San Francisco, California 94111 (Delaware limited liability company) Harvest Opportunity Partners II, LLC One Embarcadero Center Suite 2150 San Francisco, California 94111 (Delaware limited liability company) Joseph A. Jolson 1991 Trust One Embarcadero Center Suite 2150 San Francisco, California 94111 (California trust) (d) TITLE OF CLASS OF SECURITIES: Common Stock, par value $0.01 per share (e) CUSIP NUMBER: 70321D106 ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(b), OR 13D-2(b) OR (c), CHECK WHETHER THE PERSON FILING IS A: (a) [ ] Broker or dealer registered under Section 15 of the Exchange Act (15 U.S.C. 78o); (b) [ ] Bank as defined in Section 3(a)(6) of the Exchange Act (15 U.S.C. 78c); (c) [ ] Insurance company as defined in section 3(a)(19) of the Exchange Act (15 U.S.C. 78c); (d) [ ] Investment company registered under Section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8); (e) [ ] Investment Adviser in accordance with Rule 13d-1(b)(1) (ii)(E); (f) [ ] Employee benefit plan or endowment fund in accordance with Rule 13d-1(b)(1)(ii)(F); (g) [ ] Parent holding company or control person in accordance with Rule 13d-1(b)(1)(ii)(G) (Note: See Item 7); (h) [ ] A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) [ ] A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1949 (15 U.S.C. 80a-3); (h) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J). If this statement is filed pursuant to Rule 13d-1(c), check this box.[X] 12 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 12 of 19 Pages --------------------------------- ------------------------------ ITEM 4. OWNERSHIP: JOSEPH A. JOLSON (a) AMOUNT BENEFICIALLY OWNED: 3,053,899 (see exhibit A for description of beneficial ownership) (b) PERCENT OF CLASS: 16.36% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 3,053,899 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 3,053,899 (iv) Shared power to dispose or to direct the disposition of: 0

JOLSON MERCHANT PARTNERS GROUP LLC (a) AMOUNT BENEFICIALLY OWNED: 2,808,424 (see Exhibit A for description of beneficial ownership) (b) PERCENT OF CLASS: 15.14% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 2,808,424 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 2,808,424 (iv) Shared power to dispose or to direct the disposition of: 0

13 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 13 of 19 Pages --------------------------------- ------------------------------ MITCHUM, JONES & TEMPLETON GROUP, INC. (a) AMOUNT BENEFICIALLY OWNED: 470,624 (see Exhibit A for description of beneficial ownership) (b) PERCENT OF CLASS: 2.91% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 470,624 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 470,624 (iv) Shared power to dispose or to direct the disposition of: 0

MITCHUM, JONES & TEMPLETON, INC. (a) AMOUNT BENEFICIALLY OWNED: 320,624 (b) PERCENT OF CLASS: 2.00% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 320,624 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 320,624 (iv) Shared power to dispose or to direct the disposition of: 0

14 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 14 of 19 Pages --------------------------------- ------------------------------ JMP ASSET MANAGEMENT LLC (a) AMOUNT BENEFICIALLY OWNED: 2,313,300 (see Exhibit A for description of beneficial ownership) (b) PERCENT OF CLASS: 12.78% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 2,313,300 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 2,313,300 (iv) Shared power to dispose or to direct the disposition of: 0

HARVEST OPPORTUNITY PARTNERS I, LLC (a) AMOUNT BENEFICIALLY OWNED: 2,282,000 (see Exhibit A for description of beneficial ownership) (b) PERCENT OF CLASS: 12.61% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 2,282,000 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 2,282,000 (iv) Shared power to dispose or to direct the disposition of: 0

15 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 15 of 19 Pages --------------------------------- ------------------------------ HARVEST OPPORTUNITY PARTNERS II, LLC (a) AMOUNT BENEFICIALLY OWNED: 31,300 (b) PERCENT OF CLASS: 0.20% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 31,300 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 31,300 (iv) Shared power to dispose or to direct the disposition of: 0

JOSEPH A. JOLSON 1991 TRUST (a) AMOUNT BENEFICIALLY OWNED: 245,475 (see Exhibit A for description of beneficial ownership) (b) PERCENT OF CLASS: 1.54% (c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: (i) Sole power to vote or to direct the vote: 245,475 (ii) Shared power to vote or to direct the vote: 0 (iii) Sole power to dispose or to direct the disposition of: 245,475 (iv) Shared power to dispose or to direct the disposition of: 0

ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS: If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following [ ]. ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON: Not Applicable. 16 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 16 of 19 Pages --------------------------------- ------------------------------ ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY: Not Applicable. ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP: Not Applicable. ITEM 9. NOTICE OF DISSOLUTION OF GROUP: Not Applicable. ITEM 10. CERTIFICATIONS: (b) Because this statement is filed pursuant to Rule 13d-1(c), the following certification is included: By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: August 2, 2000 JOSEPH A. JOLSON By: /s/ Joseph A. Jolson --------------------------------- Joseph A. Jolson JOLSON MERCHANT PARTNERS GROUP LLC By: /s/ Joseph A. Jolson --------------------------------- Joseph A. Jolson Manager 17 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 17 of 19 Pages --------------------------------- ------------------------------ MITCHUM, JONES & TEMPLETON GROUP, INC. By: /s/ Glenn A. Okun ----------------------------------- Glenn A. Okun Authorized Signatory MITCHUM, JONES & TEMPLETON, INC. By: /s/ Glenn A. Okun ----------------------------------- Glenn A. Okun Authorized Signatory JMP ASSET MANAGEMENT LLC By: Jolson Merchant Partners Group LLC Its: Managing Member By: /s/ Joseph A. Jolson ----------------------------------- Joseph A. Jolson Manager HARVEST OPPORTUNITY PARTNERS I, LLC By: JMP Asset Management LLC Its: Managing Member By: Jolson Merchant Partners Group LLC Its: Managing Member By: /s/ Joseph A. Jolson ----------------------------------- Joseph A. Jolson Manager HARVEST OPPORTUNITY PARTNERS II, LLC By: JMP Asset Management LLC Its: Managing Member By: Jolson Merchant Partners Group LLC Its: Managing Member By: /s/ Joseph A. Jolson ----------------------------------- Joseph A. Jolson Manager 18 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 18 of 19 Pages --------------------------------- ------------------------------ JOSEPH A. JOLSON 1991 TRUST By: /s/ Joseph A. Jolson ----------------------------------- Joseph A. Jolson Trustee for the Benefit of the Joseph A. Jolson 1991 Trust A Joint Filing Agreement between the filing parties was filed as Exhibit B to Amendment No. 1 to this Schedule 13G, filed February 17, 2000. ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001) 19 --------------------------------- ------------------------------ CUSIP NO. 70321D106 13G Page 19 of 19 Pages --------------------------------- ------------------------------ EXHIBIT A DESCRIPTION OF BENEFICIAL OWNERSHIP The following chart depicts the relationships among, and holdings of, the reporting persons: ---------------- JOSEPH A. JOLSON ---------------- | | | | Manager | | Trustee | | | | ------------------------------- ----------------------------- JOLSON MERCHANT PARTNERS JOSEPH A. JOLSON 1991 TRUST GROUP LLC 137,100 common shares 24,500 common shares 108,375 warrants ------------------------------- ----------------------------- | | | | Sole Shareholder | | Sole Member | | | | -------------------- -------------------------------------- MITCHUM, JONES & JMP ASSET MANAGEMENT LLC TEMPLETON GROUP, INC. -------------------------------------- 150,000 warrants | | -------------------- | | | | | | | | | Sole Shareholder | Manager | Manager | | | | | | -------------------- --------------------- --------------------- MITCHUM, JONES & HARVEST OPPORTUNITY HARVEST OPPORTUNITY TEMPLETON, INC. PARTNERS I, LLC PARTNERS II, LLC 24,624 common shares 2,282,000 warrants 31,300 common shares 300,000 warrants --------------------- --------------------- ------------------- We have reported beneficial ownership in accordance with the rules of the Securities and Exchange Commission. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, we treated the underlying shares of common stock subject to warrants held by that person or entities controlled by that person as though they were outstanding, but we have not included those underlying shares for purposes of computing percentage ownership of any other person. Percentage ownership is otherwise based on a total of 15,821,762 common shares outstanding as reported in The Pathways Group's definitive proxy statement filed on June 16, 2000.

PATHWAYS GROUP INC SC 13G/A