X0306 4 2020-07-01 0 0001433195 APPFOLIO INC APPF 0001645662 Investment Group of Santa Barbara, LLC C/O IGSB, INC. 1485 E VALLEY ROAD, SUITE H SANTA BARBARA CA 93108 0 0 1 0 Class B Common Stock 0.00 2020-07-01 4 J 0 300691 0.00 D Class A Common Stock 300691 3554584 I By IGSB IVP III, LLC Class B Common Stock 0.00 Class A Common Stock 993627 I By IGSB Internal Venture Fund III, LLC Investment Group of Santa Barbara, LLC ("IGSB") is the manager of IGSB IVP III, LLC ("IVP III"). On July 1, 2020, the investors in one of the investment funds of IVP III approved the termination of that investment fund and the distribution of all 300,691 shares of AppFolio Class B Common Stock ("Class B Shares") held by that investment fund, pro-rata to the investors. No consideration was paid by the investors for the respective Class B Shares distributed to them. Each Class B Share is convertible, at any time at the option of the holder, into one Class A Share. In addition, Class B Shares that are sold or otherwise transferred will convert automatically, on a one share-for-one share basis, into Class A Shares, except for (i) any transfer by a partnership or limited liability company that was a registered holder of Class B Shares prior to June 30, 2015 that is made to anyone who was a partner or member of any such partnership or limited liability company prior to June 30, 2015, and (ii) any transfer to a "qualified recipient" (as defined in AppFolio's Amended and Restated Certificate of Incorporation). (Continued from Footnote 2) AppFolio's Class B Shares do not have an expiration date. However, all of the outstanding Class B Shares will convert automatically into Class A Shares, on a one share-for-one share basis, on the date when the number of the Company's outstanding Class B Shares represents less than 10% of the sum of AppFolio's outstanding Class A and Class B Shares. IGSB also is the manager of IGSB Internal Venture Fund III, LLC, which holds a total of 993,627 Class B Shares. Investment Group of Santa Barbara, LLC, a California limited liability company, By: Timothy K. Bliss, Member & Vice President, By: /s/ Kimberly Shea, Attorney-in-Fact for Timothy K. Bliss 2020-07-06