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Ownership Document
|
| Schema Version: X0306 |
| Document Type: 4 |
| Period of Report: 1/16/20 |
| Not Subject to Section 16: 0 |
| Issuer: |
| Issuer CIK: 922521 |
| Issuer Name: FALCONSTOR SOFTWARE INC |
| Issuer Trading Symbol: FALC |
| Reporting Owner: |
| Reporting Owner ID: |
| | Owner CIK: 1201176 |
| | Owner Name: KELLY MICHAEL P |
| Reporting Owner Address: |
| | Owner Street 1: C/O FALCONSTOR SOFTWARE, INC. |
| | Owner Street 2: 701 BRAZOS STREET, SUITE 400 |
| | Owner City: AUSTIN |
| | Owner State: TX |
| | Owner ZIP Code: 78701 |
| | Owner State Description: |
| Reporting Owner Relationship: |
| | Is Director? Yes |
| | Is Officer? No |
| | Is Ten Percent Owner? No |
| | Is Other? No |
| | Officer Title: |
| | Other Text: |
| Non-Derivative Table: |
| Non-Derivative Transaction: |
| | Security Title: |
| | | Value: Common Stock |
| | Transaction Date: |
| | | Value: 1/16/20 |
| | Deemed Execution Date: |
| | Transaction Coding: |
| | | Transaction Form Type: 4 |
| | | Transaction Code: A |
| | | Equity Swap Involved? No |
| | Transaction Timeliness: |
| | Transaction Amounts: |
| | | Transaction Shares: |
| Value: 44,158 |
| Footnote ID: F1 |
| Footnote ID: F2 |
| | | Transaction Price Per Share: |
| Value: 0 |
| | | Transaction Acquired-Disposed Code: |
| Value: A |
| | Post-Transaction Amounts: |
| | | Shares Owned Following Transaction: |
| Value: 51,797 |
| | Ownership Nature: |
| | | Direct or Indirect Ownership: |
| Value: D |
| Footnotes: |
| Footnote - F1: The restricted shares vest as follows: 2.5% of the shares vested immediately upon grant on January 16, 2020; 2.5% of the shares shall vest on May 31, 2020; 2.5% of the shares shall vest on May 31, 2021; 2.5% of the shares will vest on May 31, 2022; 45% of the shares shall vest upon preferred investors receiving cash proceeds in return on their invested capital in the Issuer; and 45% of the shares shall vest upon a change of control of the Issuer. |
| Footnote - F2: These restricted shares replace the 4,415,838 shares that were forfeited by Mr. Kelly in 2019. |
| Owner Signature: |
| Signature Name: /s/ Michael P. Kelly |
| Signature Date: 1/21/20 |
