<SEC-DOCUMENT>0001140361-15-045978.txt : 20151230
<SEC-HEADER>0001140361-15-045978.hdr.sgml : 20151230
<ACCEPTANCE-DATETIME>20151230171115
ACCESSION NUMBER:		0001140361-15-045978
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20151222
FILED AS OF DATE:		20151230
DATE AS OF CHANGE:		20151230

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			APPFOLIO INC
		CENTRAL INDEX KEY:			0001433195
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		50 CASTILIAN DRIVE
		CITY:			GOLETA
		STATE:			CA
		ZIP:			93117
		BUSINESS PHONE:		8053646093

	MAIL ADDRESS:	
		STREET 1:		50 CASTILIAN DRIVE
		CITY:			GOLETA
		STATE:			CA
		ZIP:			93117

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			HUGHES JASON F
		CENTRAL INDEX KEY:			0001279755

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		151314143

	MAIL ADDRESS:	
		STREET 1:		PO BOX 5609
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93150

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Hughes Family Trust dated 8/7/03
		CENTRAL INDEX KEY:			0001646443
		STATE OF INCORPORATION:			CA

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		151314144

	BUSINESS ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108
		BUSINESS PHONE:		805-699-6028

	MAIL ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Steven L. Karan Revocable Trust dated the 29th day of October, 2014
		CENTRAL INDEX KEY:			0001646441
		STATE OF INCORPORATION:			CA

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		151314145

	BUSINESS ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108
		BUSINESS PHONE:		415-937-7530

	MAIL ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			KARAN STEVEN L
		CENTRAL INDEX KEY:			0001279767

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		151314146

	MAIL ADDRESS:	
		STREET 1:		PO BOX 5609
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93150

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Meadowridge Ventures, L.P.
		CENTRAL INDEX KEY:			0001646467
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		151314147

	BUSINESS ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108
		BUSINESS PHONE:		805-699-6028

	MAIL ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Clarity Ventures, Inc.
		CENTRAL INDEX KEY:			0001661441
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		151314149

	BUSINESS ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108
		BUSINESS PHONE:		805-699-6028

	MAIL ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Clarity Ventures, L.P.
		CENTRAL INDEX KEY:			0001646465
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		151314148

	BUSINESS ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108
		BUSINESS PHONE:		805-699-6028

	MAIL ADDRESS:	
		STREET 1:		1482 EAST VALLEY ROAD
		STREET 2:		SUITE 300
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93108
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 3
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0206</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2015-12-22</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001433195</issuerCik>
        <issuerName>APPFOLIO INC</issuerName>
        <issuerTradingSymbol>APPF</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001661441</rptOwnerCik>
            <rptOwnerName>Clarity Ventures, Inc.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1482 EAST VALLEY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 300</rptOwnerStreet2>
            <rptOwnerCity>SANTA BARBARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001646465</rptOwnerCik>
            <rptOwnerName>Clarity Ventures, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1482 EAST VALLEY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 300</rptOwnerStreet2>
            <rptOwnerCity>SANTA BARBARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001646467</rptOwnerCik>
            <rptOwnerName>Meadowridge Ventures, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1482 EAST VALLEY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 300</rptOwnerStreet2>
            <rptOwnerCity>SANTA BARBARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001279767</rptOwnerCik>
            <rptOwnerName>KARAN STEVEN L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1482 EAST VALLEY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 300</rptOwnerStreet2>
            <rptOwnerCity>SANTA BARBARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001646441</rptOwnerCik>
            <rptOwnerName>Steven L. Karan Revocable Trust dated the 29th day of October, 2014</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1482 EAST VALLEY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 300</rptOwnerStreet2>
            <rptOwnerCity>SANTA BARBARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001646443</rptOwnerCik>
            <rptOwnerName>Hughes Family Trust dated 8/7/03</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1482 EAST VALLEY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 300</rptOwnerStreet2>
            <rptOwnerCity>SANTA BARBARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001279755</rptOwnerCik>
            <rptOwnerName>HUGHES JASON F</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1482 EAST VALLEY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 300</rptOwnerStreet2>
            <rptOwnerCity>SANTA BARBARA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93108</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>CLASS A COMMON STOCK</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>12890</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>CLASS A COMMON STOCK</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>175025</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>CLASS A COMMON STOCK</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>5700</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F3"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>CLASS A COMMON STOCK</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>5000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F4"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>CLASS B COMMON STOCK</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F5"/>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F5"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>CLASS A COMMON STOCK</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>26577</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F6"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>CLASS B COMMON STOCK</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F5"/>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F5"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>CLASS A COMMON STOCK</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>118740</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F7"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>CLASS B COMMON STOCK</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F5"/>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F5"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>CLASS A COMMON STOCK</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>45264</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F8"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>CLASS B COMMON STOCK</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F5"/>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F5"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>CLASS A COMMON STOCK</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>557654</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F9"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">These shares are directly owned by Jason F. Hughes (&quot;Mr. Hughes&quot;), who is a member of a &quot;group&quot; (the &quot;Group&quot;) with the other reporting persons herein for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.  These shares are held in the Jason F. Hughes Roth IRA.</footnote>
        <footnote id="F2">These shares are directly owned by Steven L. Karan (&quot;Mr. Karan&quot;), who is a member of the Group.  These shares are held in the Steven L. Karan Roth IRA.</footnote>
        <footnote id="F3">These shares are directly owned by Meadowridge Ventures, L.P. (&quot;Meadowridge&quot;), which is a member of the Group.  These shares are indirectly owned by Clarity Ventures, Inc. (&quot;Clarity GP&quot;), as the general partner of Meadowridge.  These shares are also indirectly owned by Mr. Hughes, as an authorized officer of Clarity GP, and by Mr. Karan, as the President and 100% owner of Clarity GP.</footnote>
        <footnote id="F4">These shares are directly owned by Clarity Ventures, L.P. (&quot;Clarity LP&quot;), which is a member of the Group.  These shares are indirectly owned by Clarity GP, as the general partner of Clarity LP.  These shares are also indirectly owned by Mr. Hughes, as an authorized officer of Clarity GP, and by Mr. Karan, as the President and 100% owner of Clarity GP.</footnote>
        <footnote id="F5">These shares are convertible into shares of AppFolio, Inc.'s Class A Common Stock on a one-for-one basis at any time, and the conversion has no expiration date.  All outstanding shares of AppFolio's Class B Common Stock will convert automatically into shares of AppFolio Class A Common Stock on the date when the number of the outstanding shares of Class B Common Stock represents less than 10% of the sum of AppFolio's outstanding Class A Common Stock and Class B Common Stock.  In addition, each share of Class B Common Stock will convert automatically upon any transfer of such shares, except for certain permitted transfers.</footnote>
        <footnote id="F6">These shares are directly owned by Mr. Hughes and are held in the Jason F. Hughes Roth IRA.</footnote>
        <footnote id="F7">These shares are directly owned by Mr. Karan and are held in the Steven L. Karan Roth IRA.</footnote>
        <footnote id="F8">These shares are directly owned by the Hughes Family Trust dated 8/7/03 (&quot;HFT&quot;), which is a member of the Group.  These shares are indirectly owned by Mr. Hughes, as a Co-Trustee of the HFT.</footnote>
        <footnote id="F9">These shares are directly owned by the Steven L. Karan Revocable Trust dated the 29th day of October, 2014 (&quot;Karan Trust&quot;), which is a member of the Group.  These shares are indirectly owned by Mr. Karan, as Trustee of the Karan Trust.</footnote>
    </footnotes>

    <remarks>The reporting persons herein collectively form a Section 13(d) &quot;group&quot; as described in a Schedule 13G filed with the Securities and Exchange Commission on December 30, 2015.

Exhibit List:
Exhibit 24 ? Confirming Statement</remarks>

    <ownerSignature>
        <signatureName>/s/ Jason F. Hughes, attorney-in-fact</signatureName>
        <signatureDate>2015-12-30</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24
<SEQUENCE>2
<FILENAME>poa.htm
<TEXT>
<html>
<head>
<title></title>
<!--Licensed to: K&L Gates LLP
    Document created using EDGARfilings PROfile 3.6.1.0
    Copyright 1995 - 2015 Summit Financial Printing, LLC.  All rights reserved.-->
</head>
<body style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" bgcolor="#ffffff" text="#000000">
<div style="TEXT-ALIGN: right">&#160;</div>

<div style="TEXT-ALIGN: right">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">Confirming Statement</div>

<div><br />
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">This statement confirms that the undersigned have authorized and designated Jason F. Hughes to execute and file on behalf of the undersigned all forms that the undersigned may be required to file with the U.S. Securities and Exchange Commission under Section 16 of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), as a result of the undersigned&#8217;s ownership of or transactions in securities of AppFolio, Inc.&#160; The authority granted under this statement shall continue until the undersigned is no longer required to file forms under Section 16 of the Exchange Act with respect to the ownership of or transactions in the securities of AppFolio, Inc., unless earlier revoked in writing.</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">&#160;</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">
<div><br />
</div>

<table id="8aa5f65221b54475b4c4a7dff134dc8b" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0" border="0">
<tr style="HEIGHT: 12px">
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Clarity Ventures, Inc.</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160; </td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By:&#160; <font style="FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u><font style="FONT-SIZE: 10pt">/s/ Steven L. Karan</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 6pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;</font></u></font></div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 15%; VERTICAL-ALIGN: top; FONT-WEIGHT: normal; FONT-STYLE: normal">

<div style="TEXT-ALIGN: justify"><u>12/30/15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;</u></div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Name:&#160; Steven L. Karan</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date</div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Title:&#160; President</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr style="HEIGHT: 17px">
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Clarity Ventures, L.P.</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">By:&#160; Clarity Ventures, Inc., General Partner</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By:&#160; <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u>/s/ Steven L. Karan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 15%; VERTICAL-ALIGN: top; FONT-WEIGHT: normal; FONT-STYLE: normal">

<div style="TEXT-ALIGN: justify"><u>12/30/15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Name:&#160; Steven L. Karan</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date</div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Title:&#160; President</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify">Meadowridge Ventures, L.P.</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By:&#160; Clarity Ventures, Inc., General Partner</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By:&#160; <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u>/s/ Steven L. Karan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></font></div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 15%; VERTICAL-ALIGN: top; FONT-WEIGHT: normal; FONT-STYLE: normal">

<div style="TEXT-ALIGN: justify"><u>12/30/15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Name:&#160; Steven L. Karan</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date</div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Title:&#160; President</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 830px; VERTICAL-ALIGN: top" colspan="3">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Steven L. Karan Revocable Trust dated the 29th day of October, 2014</div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By:&#160; <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u>/s/ Steven L. Karan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></font></div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 15%; VERTICAL-ALIGN: top; FONT-WEIGHT: normal; FONT-STYLE: normal">

<div style="TEXT-ALIGN: justify"><u>12/30/15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></div>
</td>
</tr>

<tr style="HEIGHT: 12px">
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Name:&#160; Steven L. Karan</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date</div>
</td>
</tr>

<tr>
<td style="WIDTH: 47.34%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 33.69%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Title:&#160; Trustee</div>
</td>
<td style="WIDTH: 4%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 15%; VERTICAL-ALIGN: top">&#160;</td>
</tr>
</table>

<div><br />
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-STYLE: italic; TEXT-ALIGN: center">&#160;</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-STYLE: italic; TEXT-ALIGN: center">&#160;</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-STYLE: italic; TEXT-ALIGN: center">[Signature Page to Confirming Statement]</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade" />
</div>
</div>

<div style="MARGIN-BOTTOM: 10pt"><br />
</div>

<table id="5538b31676e2481ab2c89868a23524d3" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify">Hughes Family Trust dated 8/7/03</div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 29.46%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 17.13%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 29.46%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 17.13%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By: By:&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u> /s/ Jason F. Hughes&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></font></div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 22.74%; VERTICAL-ALIGN: top; FONT-WEIGHT: normal; FONT-STYLE: normal">

<div style="TEXT-ALIGN: justify"><u>12/30/15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></div>
</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Name:&#160; Jason F. Hughes</div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date</div>
</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Title:&#160; Co-Trustee</div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 29.46%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 17.13%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 29.46%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 17.13%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 29.46%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Individuals</div>
</td>
<td style="WIDTH: 17.13%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By:&#160; <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u>/s/ Steven L. Karan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></font></div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 22.74%; VERTICAL-ALIGN: top; FONT-WEIGHT: normal; FONT-STYLE: normal">

<div style="TEXT-ALIGN: justify"><u>12/30/15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></div>
</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Name:&#160; Steven L. Karan</div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date</div>
</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 29.46%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 17.13%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr style="HEIGHT: 16px">
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 29.46%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 17.13%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">By:&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u> /s/ Jason F. Hughes&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></font></div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 22.74%; VERTICAL-ALIGN: top; FONT-WEIGHT: normal; FONT-STYLE: normal">

<div style="TEXT-ALIGN: justify"><u>12/30/15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></div>
</td>
</tr>

<tr>
<td style="WIDTH: 25.03%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 46.59%; VERTICAL-ALIGN: top" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Name:&#160; Jason F. Hughes</div>
</td>
<td style="WIDTH: 5.64%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 22.74%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date</div>
</td>
</tr>
</table>

<div style="MARGIN-BOTTOM: 10pt">&#160;</div>

<div><br />
</div>

<div><br />
</div>

<div><br />
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-STYLE: italic; TEXT-ALIGN: center">[Signature Page to Confirming Statement]</div>
</div>
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
