FALCONSTOR BOARD COMMITTEES

Audit Committee
The Audit Committee assists the board of directors in monitoring the integrity of the financial statements of the Company, the independent auditor’s qualifications and independence, the performance of the Company’s internal audit function, the integrity of management and information systems and internal controls, and compliance with legal and regulatory requirements.

Compensation Committee
The Compensation and Stock Option Committee approves all plans relating to compensation of the Company’s executives and administers, and approves awards under, the Company’s equity based-compensation plans.

Nominating and Corporate Governance Committee
The Nominating and Corporate Governance Committee assists the board of directors in identifying individuals qualified to become Board members, determines the composition of the board and its committees, and performs a leadership role in shaping the Company’s corporate governance policies, including developing and recommending to the board a set of corporate governance principles.