X0306 4 2017-08-22 0 0000922521 FALCONSTOR SOFTWARE INC FALC 0001477025 ESW Capital, LLC 401 CONGRESS AVE., SUITE 2650 AUSTIN TX 78701 0 0 1 0 0001295389 LIEMANDT JOSEPH 401 CONGRESS AVE., SUITE 2650 AUSTIN TX 78701 0 0 1 0 Common Stock 2017-08-22 4 P 0 1032943 0.3587 A 6049420 D Common Stock 2017-08-23 4 P 0 349941 0.3885 A 6399361 D These shares are held directly by ESW Capital, LLC ("ESW"). Joseph Liemandt is the sole voting member of ESW and may be deemed to have beneficial ownership, for purposes of Section 13(d) of the Securities Exchange Act of 1934, of the shares held by ESW. Mr. Liemandt disclaims Section 16 beneficial ownership of the shares held by ESW, except to the extent, if any, of his pecuniary interest therein. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $0.33 to $0.40, inclusive. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $0.38 to $0.40, inclusive. /s/ Andrew Price, Chief Financial Officer of ESW Capital, LLC 2017-08-28 /s/ Andrew Price, Attorney-in-Fact for Mr. Joseph Liemandt 2017-08-28