sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13d-1(a) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13d-2(a)
(Amendment No. 3)1
FALCONSTOR SOFTWARE, INC.
--------------------------------------------------------------------------------
(Name of issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
--------------------------------------------------------------------------------
(Title of class of securities)
306137 10 0
--------------------------------------------------------------------------------
(CUSIP number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
--------------------------------------------------------------------------------
(Name, address and telephone number of person
authorized to receive notices and communications)
January 15, 2002
--------------------------------------------------------------------------------
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule
13G to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /.
NOTE. The Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. SEE Rule
13d-7(b) for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 32 Pages)
--------
1 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 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).
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 2 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 484,051 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
41,008 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
484,051 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
41,008 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
525,059 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 3 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Foreign Partners, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 41,008 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
484,051 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
41,008 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
484,051 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
525,059 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 4 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners II, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 180,089 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
180,089 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
180,089 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 5 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOXIF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,370,015 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
592,821 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,370,015 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
592,821 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,962,836 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 6 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Foreign Partners III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 293,012 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
1,669,824 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
293,012 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,669,824 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,962,836 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 7 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Associates III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 299,809 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
1,663,027 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
299,809 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,663,027 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,962,836 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 8 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Irwin Lieber
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,934,705 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
2,667,984 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,934,705 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,667,984 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,602,689 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 9 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Fingerhut
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 332,180 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
2,667,984 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
332,180 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,667,984 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,000,164 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 10 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Nancy Casey
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
2,057,580 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,057,580 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,057,580 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 11 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Applegreen Partners
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 259,868 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
259,868 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
259,868 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 12 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Seth Lieber
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 86,622 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
2,927,852 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
86,622 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,927,852 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,014,474 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 13 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Jonathan Lieber
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
2,927,852 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,927,852 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,927,852 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 14 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Seneca Ventures
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 642,453 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
642,453 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
642,453 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 15 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Venture Fund
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 743,513 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
743,513 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
743,513 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 16 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Partners
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 692,983 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
692,983 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
692,983 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 17 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Brookwood Partners, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 395,217 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
395,217 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
395,217 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 18 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Rubenstein
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,812,903 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
5,142,150 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,812,903 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,142,150 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,955,053 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 19 of 32 Pages
-------------------------------- --------------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Marilyn Rubenstein
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 8,258 shares
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
2,474,166 shares
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
8,258 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,474,166 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,482,424 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 20 of 32 Pages
-------------------------------- --------------------------------
The following constitutes Amendment No. 3 to the Schedule 13D filed
by the undersigned (the "Schedule 13D"). Except as specifically amended by this
Amendment No. 3, the Schedule 13D remains in full force and effect. Capitalized
terms used in this Amendment No.3 but not defined herein shall have the meaning
set forth in the Schedule 13D.
Item 4 is hereby amended to read in its entirety as follows:
Item 4. Purpose of Transaction.
----------------------
Except as set forth herein, the Reporting Persons presently have no
plans or proposals which would relate to or result in any of the matters set
forth in subparagraphs (a) - (j) of Item 4 of Schedule 13D.
On January 15, 2002 and January 17, 2002, the Company's Board of
Directors released from the lock-up agreement 10% and 15%, respectively, of the
shares of Common Stock held by certain Reporting Persons (and certain other
stockholders of the Issuer) which were issued upon the consummation of the
Merger (the "Released Shares"). For further information relating to the Released
Shares and the lock-up agreement, please see "Item 6. Contracts, Arrangements,
Understanding or Relationships with Respect to Securities of the Issuer." The
Reporting Persons listed in Item 5(c) then sold the shares of Common Stock
released from the lock-up agreement in the open market.
In addition, in December 2001, Barry Rubenstein sold shares of
Common Stock that he owned in the Issuer prior to the merger with Falconstor
Software Inc.
Items 5(a) and (b) are hereby amended to read in their entirety as
follows:
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) The following table sets forth the aggregate number and
percentage (based on 44,758,145 shares of Common Stock outstanding as of
November 8, 2001, as reported by the Issuer in its quarterly report for the
period ending September 30, 2001) of beneficial ownership for each of the
Reporting Persons.
Percentage of
Shares of Common Stock Shares of Common Stock
Name Beneficially Owned Beneficially Owned
---- ------------------ ----------------------
Wheatley Partners, L.P.(1) 525,059 1.2%
Wheatley Foreign Partners, L.P.(2) 525,059 1.2%
Wheatley Partners II, L.P. 180,089 0.4%
Wheatley Partners III, L.P.(3) 1,962,836 4.4%
Wheatley Foreign Partners III, L.P.(4) 1,962,836 4.4%
Wheatley Associates III, L.P.(5) 1,962,836 4.4%
Wheatley Partners LLC (6) 525,059 1.2%
Wheatley Partners III LLC(7) 1,962,836 4.4%
Irwin Lieber(8) 4,602,689 10.3%
Barry Fingerhut(9) 3,000,164 6.7%
Nancy Casey(10) 2,057,580 4.6%
Applegreen Partners 259,868 0.6%
Seth Lieber(11) 3,014,474 6.7%
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 21 of 32 Pages
-------------------------------- --------------------------------
Jonathan Lieber(12) 2,927,852 6.5%
Seneca Ventures 642,453 1.4%
Woodland Venture Fund 743,513 1.7%
Woodland Partners 692,983 1.5%
Brookwood Partners, L.P. 395,217 0.9%
Woodland Services Corp.(13) 1,385,966 3.1%
Barry Rubenstein(14) 6,955,053 15.5%
Marilyn Rubenstein(15) 2,482,424 5.5%
----------------------
(1) Consists of (a) 484,051 shares of Common Stock held by Wheatley and
(b) 41,008 shares of Common Stock held by Wheatley Foreign. Wheatley
disclaims beneficial ownership of the securities held by Wheatley
Foreign.
(2) Consists of (a) 41,008 shares of Common Stock held by Wheatley Foreign
and (b) 484,051 shares of Common Stock held by Wheatley. Wheatley
Foreign disclaims beneficial ownership of the securities held by
Wheatley.
(3) Consists of (a) 1,370,015 shares of Common Stock held by Wheatley III,
(b) 293,012 shares of Common Stock held by Wheatley Foreign III and
(c) 299,809 shares of Common Stock held by Wheatley Associates.
Wheatley III disclaims beneficial ownership of the securities held by
Wheatley Foreign III and Wheatley Associates.
(4) Consists of (a) 293,012 shares of Common Stock held by Wheatley
Foreign III, (b) 1,370,015 shares of Common Stock held by Wheatley III
and (c) 299,809 shares of Common Stock held by Wheatley Associates.
Wheatley Foreign III disclaims beneficial ownership of the securities
held by Wheatley III and Wheatley Associates.
(5) Consists of (a) 299,809 shares of Common Stock held by Wheatley
Associates, (b) 1,370,015 shares of Common Stock held by Wheatley III
and (c) 293,012 shares of Common Stock held by Wheatley Foreign III.
Wheatley Associates disclaims beneficial ownership of the securities
held by Wheatley III and Wheatley Foreign III.
(6) Consists of (a) 484,051 shares of Common Stock held by Wheatley and
(b) 41,008 shares of Common Stock held by Wheatley Foreign. Wheatley
LLC disclaims beneficial ownership of the securities held by Wheatley
and Wheatley Foreign, except to the extent of its respective equity
interests therein.
(7) Consists of (a) 1,370,015 shares of Common Stock held by Wheatley III,
(b) 293,012 shares of Common Stock held by Wheatley Foreign III and
(c) 299,809 shares of Common Stock held by Wheatley Associates.
Wheatley III LLC disclaims beneficial ownership of the securities held
by Wheatley III, Wheatley Foreign III and Wheatley Associates, except
to the extent of its respective equity interests therein.
(8) Consists of (a) 1,934,705 shares of Common Stock held by Irwin Lieber,
(b) 484,051 shares of Common Stock held by Wheatley, (c) 41,008 shares
of Common Stock held by Wheatley Foreign, (d) 180,089 shares of Common
Stock held by Wheatley II, (e) 1,370,015 shares of Common Stock held
by Wheatley III, (f) 293,012 shares of Common Stock held by Wheatley
Foreign III, and (g) 299,809 shares of Common Stock held by Wheatley
Associates. Mr. Lieber disclaims beneficial ownership of the
securities held by Wheatley, Wheatley Foreign, Wheatley II, Wheatley
III, Wheatley Foreign III and Wheatley Associates, except to the
extent of his respective equity interests therein.
(9) Consists of (a) 332,180 shares of Common Stock held by Barry
Fingerhut, (b) 484,051 shares of Common Stock held by Wheatley, (c)
41,008 shares of Common Stock held by Wheatley Foreign, (d) 180,089
shares of Common Stock held by Wheatley II, (e) 1,370,015 shares of
Common Stock held by Wheatley III, (f) 293,012 shares of Common Stock
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 22 of 32 Pages
-------------------------------- --------------------------------
held by Wheatley Foreign III, and (g) 299,809 shares of Common Stock
held by Wheatley Associates. Mr. Fingerhut disclaims beneficial
ownership of the securities held by Wheatley, Wheatley Foreign,
Wheatley II, Wheatley III, Wheatley Foreign III and Wheatley
Associates, except to the extent of his respective equity interests
therein.
(10) Consists of (a) 94,744 shares of Common Stock held by Nancy Casey and
her husband, as joint tenants, (b) 1,370,015 shares of Common Stock
held by Wheatley III, (c) 293,012 shares of Common Stock held by
Wheatley Foreign III, and (d) 299,809 shares of Common Stock held by
Wheatley Associates. Ms. Casey disclaims beneficial ownership of the
securities held by Wheatley III, Wheatley Foreign III and Wheatley
Associates, except to the extent of her respective equity interests
therein.
(11) Consists of (a) 86,622 shares of Common Stock held by Seth Lieber, (b)
484,051 shares of Common Stock held by Wheatley, (c) 41,008 shares of
Common Stock held by Wheatley Foreign, (d) 180,089 shares of Common
Stock held by Wheatley II, (e) 1,370,015 shares of Common Stock held
by Wheatley III, (f) 293,012 shares of Common Stock held by Wheatley
Foreign III, and (g) 299,809 shares of Common Stock held by Wheatley
Associates and (h) 259,868 shares of Common Stock held by Applegreen.
Mr. Lieber disclaims beneficial ownership of the securities held by
Wheatley, Wheatley Foreign, Wheatley II, Wheatley III, Wheatley
Foreign III, Wheatley Associates and Applegreen, except to the extent
of his respective equity interests therein.
(12) Consists of (a) 484,051 shares of Common Stock held by Wheatley, (b)
41,008 shares of Common Stock held by Wheatley Foreign, (c) 180,089
shares of Common Stock held by Wheatley II, (d) 1,370,015 shares of
Common Stock held by Wheatley III, (e) 293,012 shares of Common Stock
held by Wheatley Foreign III, (f) 299,809 shares of Common Stock held
by Wheatley Associates and (g) 259,868 shares of Common Stock held by
Applegreen. Mr. Lieber disclaims beneficial ownership of the
securities held by Wheatley, Wheatley Foreign, Wheatley II, Wheatley
III, Wheatley Foreign III, Wheatley Associates and Applegreen, except
to the extent of his respective equity interests therein.
(13) Consists of (a) 642,453 shares of Common Stock held by Seneca and (b)
743,513 shares of Common Stock held by Woodland Venture. Woodland
Services disclaims beneficial ownership of the securities held by
Seneca and Woodland Venture, except to the extent of its respective
equity interests therein.
(14) Consists of (a) 1,812,903 shares of Common Stock held by Barry
Rubenstein, (b) 484,051 shares of Common Stock held by Wheatley, (c)
41,008 shares of Common Stock held by Wheatley Foreign, (d) 180,089
shares of Common Stock held by Wheatley II, (e) 1,370,015 shares of
Common Stock held by Wheatley III, (f) 293,012 shares of Common Stock
held by Wheatley Foreign III, (g) 299,809 shares of Common Stock held
by Wheatley Associates, (h) 642,453 shares of Common Stock held by
Seneca, (i) 743,513 shares of Common Stock held by Woodland Venture,
(j) 692,983 shares of Common Stock held by Woodland Partners and (k)
395,217 shares of Common Stock held by Brookwood. Mr. Rubenstein
disclaims beneficial ownership of the securities held by Wheatley,
Wheatley Foreign, Wheatley II, Wheatley III, Wheatley Foreign III,
Wheatley Associates, Seneca, Woodland Venture, Woodland Partners and
Brookwood, except to the extent of his respective equity interests
therein.
(15) Consists of (a) 8,258 shares of Common Stock held by Marilyn
Rubenstein, (b) 642,453 shares of Common Stock held by Seneca, (c)
743,513 shares of Common Stock held by Woodland Venture, (d) 692,983
shares of Common Stock held by Woodland Partners and (e) 395,217
shares of Common Stock held by Brookwood. Mrs. Rubenstein disclaims
beneficial ownership of the securities held by Seneca, Woodland
Venture, Woodland Partners and Brookwood, except to the extent of her
respective equity interests therein.
(b) Wheatley has sole power to vote and dispose of 484,051 shares of
Common Stock, representing approximately 1.1% of the outstanding shares of
Common Stock and may be deemed to have shared power to vote and dispose of
41,008 shares of Common Stock, representing approximately 0.1% of the
outstanding shares of Common Stock.
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 23 of 32 Pages
-------------------------------- --------------------------------
Wheatley Foreign has sole power to vote and dispose of 41,008 shares
of Common Stock, representing approximately 0.1% of the outstanding shares of
Common Stock and may be deemed to have shared power to vote and dispose of
484,051 shares of Common Stock, representing approximately 1.1% of the
outstanding shares of Common Stock.
By virtue of being the general partner of Wheatley and a general
partner in Wheatley Foreign, Wheatley LLC may be deemed to have shared power to
vote and dispose of 525,059 shares of Common Stock, representing approximately
1.2% of the outstanding shares of Common Stock.
Wheatley II has sole power to vote and dispose of 180,089 shares of
Common Stock, representing approximately 0.4% of the outstanding shares of
Common Stock.
Wheatley III has sole power to vote and dispose of 1,370,015 shares
of Common Stock, representing approximately 3.1% of the outstanding shares of
Common Stock and may be deemed to have shared power to vote and dispose of
592,281 shares of Common Stock, representing approximately 1.3% of the
outstanding shares of Common Stock.
Wheatley Foreign III has sole power to vote and dispose of 293,012
shares of Common Stock, representing approximately 0.7% of the outstanding
shares of Common Stock and may be deemed to have shared power to vote and
dispose of 1,669,824 shares of Common Stock, representing approximately 3.7% of
the outstanding shares of Common Stock.
Wheatley Associates has sole power to vote and dispose of 299,809
shares of Common Stock, representing approximately 0.7% of the outstanding
shares of Common Stock and may be deemed to have shared power to vote and
dispose of 1,663,027 shares of Common Stock, representing approximately 3.7% of
the outstanding shares of Common Stock.
By virtue of being the general partner of Wheatley III, Wheatley
Foreign III and Wheatley Associates, Wheatley III LLC may be deemed to have
shared power to vote and dispose of 1,962,836 shares of Common Stock,
representing approximately 4.4% of the outstanding shares of Common Stock.
Irwin Lieber has sole power to vote and dispose of 1,934,705 shares
of Common Stock, representing approximately 4.3% of the outstanding shares of
Common Stock. By virtue of being a member and an officer of Wheatley LLC and
Wheatley III LLC and a general partner of Wheatley II, Irwin Lieber may be
deemed to have shared power to vote and dispose of 2,667,984 shares of Common
Stock, representing approximately 6.0% of the outstanding shares of Common
Stock.
Barry Fingerhut has sole power to vote and dispose of 332,180 shares
of Common Stock, representing approximately 0.7% of the outstanding shares of
Common Stock. By virtue of being a member and an officer of Wheatley LLC and
Wheatley III LLC and a general partner of Wheatley II, Mr. Fingerhut may be
deemed to have shared power to vote and dispose of 2,667,984 shares of Common
Stock, representing approximately 6.0% of the outstanding shares of Common
Stock.
Nancy Casey has shared power to vote and dispose of 94,744 shares of
Common Stock, representing approximately 0.2% of the outstanding shares of
Common Stock. By virtue of being a member and an officer of Wheatley III LLC,
Ms. Casey may also be deemed to have shared power to vote and dispose of
1,962,836 shares of Common Stock, representing approximately 4.4% of the
outstanding shares of Common Stock.
Applegreen has sole power to vote and dispose of 259,868 shares of
Common Stock, representing approximately 0.6% of the outstanding shares of
Common Stock.
Seth Lieber has sole power to vote and dispose of 86,622 shares of
Common Stock, each representing 0.2% of the outstanding shares of Common Stock.
By virtue of being a member and an officer of Wheatley LLC and Wheatley III LLC
and a general partner of Wheatley II and Applegreen, Seth Lieber may be deemed
to have shared power to vote and dispose of 2,927,852 shares of Common Stock,
representing approximately 6.5% of the outstanding shares of Common Stock.
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 24 of 32 Pages
-------------------------------- --------------------------------
By virtue of being a member and an officer of Wheatley LLC and
Wheatley III LLC, a general partner of Wheatley II and the managing general
partner of Applegreen, Jonathan Lieber may be deemed to have shared power to
vote and dispose of 2,927,852 shares of Common Stock, representing approximately
6.5% of the outstanding shares of Common Stock.
Seneca has sole power to vote and dispose of 642,453 shares of
Common Stock, representing approximately 1.4% of the outstanding shares of
Common Stock.
Woodland Venture has sole power to vote and dispose of 743,513
shares of Common Stock, representing approximately 1.7% of the outstanding
shares of Common Stock.
Woodland Partners has sole power to vote and dispose of 692,983
shares of Common Stock, representing 1.5% of the outstanding shares of Common
Stock.
Brookwood has sole power to vote and dispose of 395,217 shares of
Common Stock, representing 0.9% of the outstanding shares of Common Stock.
By virtue of being a general partner of Seneca and Woodland Venture,
Woodland Services may be deemed to have shared power to vote and dispose of
1,385,966 shares of Common Stock, representing approximately 3.1% of the
outstanding shares of Common Stock.
Barry Rubenstein has sole power to vote and dispose of 1,812,903
shares of Common Stock, representing approximately 4.1% of the outstanding
shares of Common Stock. By virtue of being a member and an officer of Wheatley
LLC and Wheatley III LLC and a general partner of Wheatley II, Seneca, Woodland
Venture, Woodland Partners and Brookwood, Mr. Rubenstein may be deemed to have
shared power to vote and dispose of 5,142,150 shares of Common Stock,
representing approximately 11.5% of the outstanding shares of Common Stock. Does
not include securities held by Marilyn Rubenstein, the wife of Mr. Rubenstein.
Marilyn Rubenstein has sole power to vote and dispose of 8,258
shares of Common Stock, representing less than one percent of the outstanding
shares of Common Stock. By virtue of being a general partner of Woodland
Partners and Brookwood and an officer of Woodland Services, Mrs. Rubenstein may
be deemed to have shared power to vote and dispose of 2,474,166 shares of Common
Stock, representing approximately 5.5% of the outstanding shares of Common
Stock. Does not include securities held by Barry Rubenstein, the husband of Mrs.
Rubenstein.
Item 5(c) is amended in its entirety to read as follows:
(c) The following table sets forth a description of all transactions
in shares of Common Stock of the Issuer by the Reporting Persons identified in
Item 2 of this Schedule 13D effected during the past sixty days, which consists
of the following open-market sales:
Sale Number of Shares Sales Price
Name of Stockholder Date Sold per Share($)
------------------- ---- ----- ------------
Barry Rubenstein 12/27/01 264,500(1) 8.60
Brookwood Partners 1/15/02 52,696 10.25
1/17/02 79,043 8.96
Applegreen Partners 1/15/02 34,649 10.25
1/17/02 51,974 8.96
Jonathan Lieber 1/15/02 2,527 10.25
1/17/02 22,738 8.96
Seth Lieber 1/15/02 11,550 10.25
1/17/02 17,325 8.96
Nancy Casey 1/15/02 12,633 10.25
1/23/02 18,948 8.06
------------------------
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 25 of 32 Pages
-------------------------------- --------------------------------
(1) These shares were owned by Mr. Rubenstein prior to the Merger.
Item 6 is amended in its entirety to read as follows:
Item 6. Contracts, Arrangements, Understandings or Relationships With
Respect to Securities of the Issuer.
Prior to the Merger, the Reporting Persons and the stockholders of
the Issuer who received shares of Common Stock in the Merger executed a lock-up
agreement (the "Lock-up Agreement") which provided that the sale of the shares
of Common Stock they acquired in the Merger were subject to a lock-up until
August 22, 2002. In January 2002, certain of the stockholders subject to the
Lock-up Agreement, including but not limited to all of the Reporting Persons
listed in Item 5(c), agreed to extend their lock-up until April 30, 2003 (the
"Extended Lock-up"). In connection with the Extended Lock-up, the Board of
Directors obtained the approval of certain principal stockholders of the Issuer,
including ReiJane Huai, the President and Chief Executive of the Issuer, Barry
Fingerhut, Marilyn Rubenstein, Irwin Lieber, Barry Rubenstein, and certain
investment partnerships affiliated with Messrs. Lieber and Rubenstein who
directly own shares of Common stock being Seneca Ventures, Woodland Venture
Fund, Woodland Partners, Wheatley Partners, L.P., Wheatley Foreign Partners,
L.P., Wheatley Partners II, L.P., Wheatley Partners III, L.P., Whatley Foreign
Partners III, L.P., and Wheatley Associates III, L.P. (collectively, the
"Principal Stockholders") to provide that in the event that the Board of
Directors releases shares of Common Stock from the Lock-up Agreement prior to
April 30, 2003, that the shares held by the Principal Stockholders will not be
released from the Lock-up Agreement until all other stockholders subject to the
Lock-up Agreement have been given the opportunity to elect to have all of their
shares of Common Stock subject to the Lock-up Agreement released by the Issuer
for sale (the "Additional Lock-up").
No shares of Common Stock held by the Principal Stockholders were
released from the Additional Lock-up. However, shares of Common Stock held by
the following Reporting Persons are not considered to be shares held by the
Principal Stockholders by the Issuer for purposes of the Additional Lock-up and
accordingly such Reporting Persons had the right and sold Released Shares: (i)
Nancy Casey; (ii) Seth and Jonathan Lieber, adult children of Mr. Irwin Lieber;
(iii) Applegreen Partners, a limited partnership managed by Seth and Jonathan
Lieber; and (iv) Brookwood Partners, L.P., a partnership for the benefit of the
adult children of Mr. Rubenstein.
Item 7 is amended to include the following:
Item 7. Materials to be Filed as Exhibits.
---------------------------------
The following documents are filed herewith:
(c) Form of Lock-Up Agreement dated January 2002 by and
among the Issuer and certain stockholders of the Issuer.
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 26 of 32 Pages
-------------------------------- --------------------------------
SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: January 24, 2002 WHEATLEY PARTNERS, L.P.
By: Wheatley Partners LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY FOREIGN PARTNERS, L.P.
By: Wheatley Partners LLC, a General
Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY PARTNERS II, L.P.
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, a General Partner
WHEATLEY PARTNERS III, L.P.
By: Wheatley Partners III LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY FOREIGN PARTNERS III, L.P.
By: Wheatley Partners III LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY ASSOCIATES III, L.P.
By: Wheatley Partners III LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
/s/ Irwin Lieber
----------------------------------------
Irwin Lieber
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 27 of 32 Pages
-------------------------------- --------------------------------
/s/ Barry Fingerhut
----------------------------------------
Barry Fingerhut
/s/ Nancy Casey
----------------------------------------
Nancy Casey
/s/ Seth Lieber
----------------------------------------
Seth Lieber
APPLEGREEN PARTNERS
By: /s/ Jonathan Lieber
------------------------------------
Jonathan Lieber,
Managing General Partner
/s/ Jonathan Lieber
----------------------------------------
Jonathan Lieber
SENECA VENTURES
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, a General Partner
WOODLAND VENTURE FUND
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, a General Partner
WOODLAND PARTNERS
By: /s/ Barry Rubenstein
-----------------------------------
Barry Rubenstein, a General Partner
BROOKWOOD PARTNERS, L.P.
By: /s/ Barry Rubenstein
-----------------------------------
Barry Rubenstein, a General Partner
/s/ Barry Rubenstein
---------------------------------------
Barry Rubenstein
/s/ Marilyn Rubenstein
----------------------------------------
Marilyn Rubenstein
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 28 of 32 Pages
-------------------------------- --------------------------------
Exhibit Index
The following document is filed herewith:
(a) Form of Lock-Up Agreement dated January 2002 by and among
the Issuer and certain stockholders of the Issuer.
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 29 of 32 Pages
-------------------------------- --------------------------------
EXHBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the Statement on Schedule 13D,
Amendment No. 3 dated January 24, 2002 with respect to the shares of common
stock, $0.01 par value, of Falconstor Software, Inc. and any further amendments
thereto executed by each or any of us shall be filed on behalf of each of us
pursuant to and in accordance with the provisions of Rule 13d-1(f) under the
Securities Exchange Act of 1934, as amended.
9 This Agreement may be executed in separate counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same instrument.
Dated: January 24, 2002 WHEATLEY PARTNERS, L.P.
By: Wheatley Partners LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY FOREIGN PARTNERS, L.P.
By: Wheatley Partners LLC, a General
Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY PARTNERS II, L.P.
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, a General Partner
WHEATLEY PARTNERS III, L.P.
By: Wheatley Partners III LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY FOREIGN PARTNERS III, L.P.
By: Wheatley Partners III LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
WHEATLEY ASSOCIATES III, L.P.
By: Wheatley Partners III LLC,
the General Partner
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, President
/s/ Irwin Lieber
----------------------------------------
Irwin Lieber
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 30 of 32 Pages
-------------------------------- --------------------------------
/s/ Barry Fingerhut
----------------------------------------
Barry Fingerhut
/s/ Nancy Casey
----------------------------------------
Nancy Casey
/s/ Seth Lieber
----------------------------------------
Seth Lieber
APPLEGREEN PARTNERS
By: /s/ Jonathan Lieber
------------------------------------
Jonathan Lieber,
Managing General Partner
/s/ Jonathan Lieber
----------------------------------------
Jonathan Lieber
SENECA VENTURES
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, a General Partner
WOODLAND VENTURE FUND
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, a General Partner
WOODLAND PARTNERS
By: /s/ Barry Rubenstein
-----------------------------------
Barry Rubenstein, a General Partner
BROOKWOOD PARTNERS, L.P.
By: /s/ Barry Rubenstein
-----------------------------------
Barry Rubenstein, a General Partner
/s/ Barry Rubenstein
---------------------------------------
Barry Rubenstein
/s/ Marilyn Rubenstein
----------------------------------------
Marilyn Rubenstein
-------------------------------- --------------------------------
CUSIP No. 306137 10 0 13D Page 31 of 32 Pages
-------------------------------- --------------------------------
Exhibit (a)
FALCONSTOR SOFTWARE, INC. LOCK-UP AGREEMENT
As of January 7, 2002
Stockholder
To Whom It May Concern:
Pursuant to an Agreement and Plan of Merger and Reorganization,
dated as of May 4, 2001 (the "Agreement"), Empire Acquisition Corp., a wholly
owned subsidiary of Network Peripherals Inc. ("NPI"), merged with and into
FalconStor, Inc. (the "Merger"), with the surviving entity called FalconStor
Software, Inc. (the "Company"). To induce NPI to enter into the Agreement, the
undersigned, during the period that commenced on August 22, 2001 and ends on
August 22, 2002 (the "Lock-Up Period"):
(i) agreed not to, directly or indirectly sell, offer to sell,
contract to sell (including, without limitation, any short sale),
grant any option to purchase or otherwise transfer or dispose of
(other than to donees who agree to be similarly bound) any
securities received by the undersigned in connection with the
Merger; and
(ii) acknowledged that following August 22, 2001, the
Company's Board of Directors may, in its sole discretion, release
any or all of the shares held by the undersigned from the
obligations of this letter prior to the expiration of the Lock-Up
Period.
As set forth in the attached letter, the Board of Directors believes
it would be beneficial for all stockholders to extend the Lock-Up Period until
April 30, 2003. By executing this letter, you agree to extend the Lock-Up Period
(the "Lock-Up Extension") until and including April 30, 2003, and you
acknowledge the beneficial benefits to you of this extension.
Furthermore, the Lock-Up Extension will not be effective unless 100%
of all stockholders subject to the Lock-Up Period agree to the extension.
Finally, in order to facilitate an orderly sale of stock subject to the lock-up,
if the Board of Directors decides to release any shares before the expiration of
the Lock-Up Extension, the undersigned will be required and agrees to use either
HD Brous & Co., Inc., Ladenberg, Thalman & Co., Inc., Wien Securities
Corp. or Janney Montgomery Scott LLC, as the undersigned indicates below. You
can sell shares though such brokers during the limited time period of the
release. Any release of shares not sold during such period shall remain subject
to the Lock-Up Extension.
The undersigned hereby represents and warrants that the undersigned
has full power and authority to execute this letter and enter the agreements set
forth herein, and that, upon request, the undersigned will execute any
additional documents necessary or desirable in connection with the enforcement
hereof.
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CUSIP No. 306137 10 0 13D Page 32 of 32 Pages
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All authority herein conferred or agreed to be conferred shall
survive the death or incapacity of the undersigned and any obligations of the
undersigned shall be binding upon the heirs, personal representatives,
successors, and assigns of the undersigned.
Very truly yours,
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Stockholder's Signature
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Name and Address Stockholder
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Social Security or Taxpayer Identification No.
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Number of shares of FalconStor Software, Inc. Common
Stock owned beneficially or of record:
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Certificate Numbers:
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Broker choice (if you are already a registered broker-
dealer, please provide the name of your brokerage firm):
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E-mail address:
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Facsimile number:
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Telephone No. (Day):
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Telephone No. (Night):
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Cellular Telephone No.
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