Control4 Corporation
CONTROL4 CORP (Form: DEF 14A, Received: 04/23/2014 16:32:18)

Use these links to rapidly review the document
Table of Contents

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.          )

Filed by the Registrant ý

Filed by a Party other than the Registrant o

Check the appropriate box:

o

 

Preliminary Proxy Statement

o

 

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

ý

 

Definitive Proxy Statement

o

 

Definitive Additional Materials

o

 

Soliciting Material under §240.14a-12

 

CONTROL4 CORPORATION

(Name of Registrant as Specified In Its Charter)

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

ý

 

No fee required.

o

 

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
    (1)   Title of each class of securities to which transaction applies:
        
 
    (2)   Aggregate number of securities to which transaction applies:
        
 
    (3)   Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
        
 
    (4)   Proposed maximum aggregate value of transaction:
        
 
    (5)   Total fee paid:
        
 

o

 

Fee paid previously with preliminary materials.

o

 

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

 

(1)

 

Amount Previously Paid:
        
 
    (2)   Form, Schedule or Registration Statement No.:
        
 
    (3)   Filing Party:
        
 
    (4)   Date Filed:
        
 

Table of Contents

LOGO

April 18, 2014

Dear Control4 Stockholder:

        I am pleased to invite you to attend the 2014 Annual Meeting of Stockholders (the "Annual Meeting") of Control4 Corporation ("Control4" or the "Company") to be held on Wednesday, May 14, 2014 at 2:00 p.m. Mountain Time at Control4's corporate offices located at 11734 S. Election Road, Salt Lake City, Utah 84020.

        At this year's Annual Meeting, our stockholders will be asked to: (1) elect the two nominees for Class I director who are named in the Proxy Statement; (2) ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2014; and (3) transact any other business that properly comes before the Annual Meeting (including adjournments and postponements thereof).

        Details regarding the meeting and the business to be conducted are more fully described in the accompanying Notice of 2014 Annual Meeting of Stockholders (the "Notice") and the Proxy Statement. Our board of directors recommends that you vote "FOR" each of the proposals listed above. You should carefully read the accompanying Proxy Statement, which contains detailed information concerning each of these proposals.

        Your vote is important.     Whether or not you plan to attend the Annual Meeting, I hope you will vote as soon as possible. You may vote over the Internet or in person at the Annual Meeting or, if you receive your proxy materials by U.S. mail, you also may vote by mailing a proxy card or voting by telephone. Please review the instructions on the Notice or on the proxy card regarding your voting options.

        Thank you for your ongoing support of and continued interest in Control4. We look forward to seeing you at our Annual Meeting.

Sincerely,    


GRAPHIC

 

 

Martin Plaehn
President, Chief Executive Officer and
Chairman of the Board

 

 


YOUR VOTE IS IMPORTANT

        In order to ensure your representation at the meeting, whether or not you plan to attend the Annual Meeting, please vote your shares as promptly as possible over the Internet by following the instructions on your Notice or, if you receive your proxy materials by U.S. mail, by following the instructions on your proxy card. Your participation will help to ensure the presence of a quorum at the meeting and save Control4 the extra expense associated with additional solicitation. If you hold your shares through a broker, your broker is not permitted to vote on your behalf in the election of directors, unless you provide specific instructions to the broker by completing and returning any voting instruction form that the broker provides (or following any instructions that allow you to vote your broker-held shares via telephone or the Internet). For your vote to be counted, you will need to communicate your voting decision before the date of the Annual Meeting. Voting your shares in advance will not prevent you from attending the Annual Meeting, revoking your earlier submitted proxy or voting your stock in person.


Table of Contents

LOGO

CONTROL4 CORPORATION

11734 S. Election Road
Salt Lake City, Utah 84020

NOTICE OF THE 2014 ANNUAL MEETING OF STOCKHOLDERS
To Be Held on May 14, 2014

        Notice is hereby given that Control4 Corporation will hold its 2014 Annual Meeting of Stockholders (the "Annual Meeting") on May 14, 2014 at 2:00 p.m. Mountain Time at Control4 Corporation's corporate offices located at 11734 S. Election Road, Salt Lake City, Utah 84020, to accomplish the following purposes:

        The Annual Meeting will begin promptly at 2:00 p.m. Mountain Time, and check-in will begin at 1:30 p.m. Mountain Time. Only stockholders of record at the close of business on April 15, 2014 are entitled to notice of and to vote at the Annual Meeting as set forth in the Proxy Statement. If you plan to attend the Annual Meeting in person, you should be prepared to present photo identification such as a valid driver's license and verification of stock ownership for admittance. You are entitled to attend the Annual Meeting only if you were a stockholder as of the close of business on April 15, 2014 or hold a valid proxy for the Annual Meeting. If you are a stockholder of record, your ownership as of the record date will be verified prior to admittance into the meeting. If you are not a stockholder of record but hold shares through a broker, trustee, or nominee, you must provide proof of beneficial ownership as of the record date, such as an account statement or similar evidence of ownership. Please allow ample time for the admittance process.

        Your vote is important.     Whether or not you plan to attend the Annual Meeting, I encourage you to read the Proxy Statement and submit your proxy or voting instructions as soon as possible. Please review the instructions on the proxy card regarding your voting options. You may vote in person at the Annual Meeting, via the Internet, by mail or by telephone.

By Order of the Board of Directors,

GRAPHIC

Greg Bishop
General Counsel, Chief Compliance Officer and Corporate Secretary

Salt Lake City, Utah
April 18, 2014


Table of Contents


Table of Contents

Letter to Control4 Stockholders from Martin Plaehn, CEO of Control4

     

Notice of the 2014 Annual Meeting of Shareholders

     

Proxy Statement

    1  

General Information

    1  

Proposal One: Election of Directors

    5  

Number of Directors; Board Structure

    5  

Nominees

    5  

Recommendation of the Board of Directors

    6  

Nominees for Election for a Three-Year Term Ending at the 2017 Annual Meeting

    6  

Director Continuing in Office Until the 2015 Annual Meeting

    7  

Directors Continuing in Office Until the 2016 Annual Meeting

    7  

Executive Officers

    8  

Corporate Governance

    10  

Meetings of the Board of Directors

    10  

Code of Business Conduct and Ethics

    10  

Independence of the Board of Directors

    10  

Identifying and Evaluating Director Nominees

    10  

Minimum Qualifications

    11  

Stockholder Recommendations

    11  

Stockholder Communications

    11  

Board Leadership Structure

    12  

Board's Role in Risk Oversight

    12  

Risks Related to Compensation Policies and Practices

    13  

Board Committees

    13  

Audit Committee

    13  

Compensation Committee

    13  

Nominating and Corporate Governance Committee

    14  

Director Compensation

    15  

2013 Director Compensation

    16  

Proposal Two: Ratification of the Appointment of Our Independent Registered Public Accounting Firm

    17  

Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm

    17  

Audit Fees

    18  

Recommendation of the Board of Directors

    18  

Report of the Audit Committee of the Board of Directors

    18  

Security Ownership of Certain Beneficial Owners and Management

    20  

Section 16(a) Beneficial Ownership Reporting Compliance

    23  

Equity Compensation Plan Information

    23  

Executive Compensation

    24  

Summary Compensation Table

    24  

Outstanding Equity Awards at Fiscal Year-End

    26  

Benefits

    27  

Employment Arrangements with Our Named Executive Officers

    27  

Compensation Committee Interlocks and Insider Participation

    28  

Report of the Compensation Committee of the Board of Directors

    29  

Related Party Transactions

    30  

Certain Relationships and Transactions

    30  

Procedures for Approval of Related Party Transactions

    30  

Transaction of Other Business

    30  

Additional Information

    30  

Procedures for Submitting Stockholder Proposals

    30  

Table of Contents

LOGO

PROXY STATEMENT

FOR THE 2014 ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD MAY 14, 2014


GENERAL INFORMATION

        Our board of directors solicits your proxy on our behalf for the 2014 Annual Meeting of Stockholders (the "Annual Meeting") and at any postponement or adjournment of the Annual Meeting for the purposes set forth in this Proxy Statement and the accompanying Notice of the 2014 Annual Meeting of Stockholders (the "Notice"). The Annual Meeting will be held at 2:00 p.m. Mountain Time on May 14, 2014 at our corporate offices located at 11734 S. Election Road, Salt Lake City, Utah 84020. We made this Proxy Statement available to stockholders beginning on April 18, 2014.

        In this Proxy Statement the terms "Control4," the "Company," "we," "us," and "our" refer to Control4 Corporation. The mailing address of our principal executive offices is Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020.

Record Date   April 15, 2014.

Quorum

 

A majority of the shares of all issued and outstanding stock entitled to vote on the record date must be present in person or represented by proxy to constitute a quorum.

Shares Outstanding

 

23,598,817 shares of common stock outstanding as of April 15, 2014.

Voting

 

There are four ways a stockholder of record can vote:

 

 

(1)

 

By Internet: You may vote over the Internet by following the instructions provided in the Notice or, if you receive your proxy materials by U.S. mail, by following the instructions on the proxy card.

 

 

(2)

 

By Telephone: If you receive your proxy materials by U.S. mail, you may vote by telephone by following the instructions on the proxy card.

 

 

(3)

 

By Mail: If you receive your proxy materials by U.S. mail, you may complete, sign and return the accompanying proxy card in the postage-paid envelope provided.

 

 

(4)

 

In Person: If you are a stockholder as of the record date, you may vote in person at the meeting. Submitting a proxy will not prevent stockholders from attending the Annual Meeting, revoking their earlier-submitted proxy, and voting in person.

1


Table of Contents

    In order to be counted, proxies submitted by telephone or Internet must be received by 11:59 p.m. Mountain Time on May 13, 2014. Proxies submitted by U.S. mail must be received before the start of the Annual Meeting.

 

 

If you hold your shares through a bank or broker, please follow their instructions.

Revoking Your Proxy

 

Stockholders of record may revoke their proxies by attending the Annual Meeting and voting in person, by filing an instrument in writing revoking the proxy or by filing another duly executed proxy bearing a later date with our Secretary before the vote is counted or by voting again using the telephone or Internet before the cutoff time (your latest telephone or Internet proxy is the one that will be counted). If you hold shares through a bank or broker, you may revoke any prior voting instructions by contacting that firm.

Votes Required to Adopt Proposals

 

Each share of our common stock outstanding on the record date is entitled to one vote on any proposal presented at the Annual Meeting:

 

 

For Proposal One, the election of directors, the two nominees receiving the plurality of votes entitled to vote and cast will be elected as directors.

 

 

For Proposal Two, a majority of the votes properly cast is required to ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2014.

Effect of Abstentions and Broker Non-Votes

 

Votes withheld from any nominee, abstentions, and "broker nonvotes" ( i.e. , where a broker has not received voting instructions from the beneficial owner and for which the broker does not have discretionary power to vote on a particular matter) are counted as present for purposes of determining the presence of a quorum. Shares voting "withheld" have no effect on the election of directors. Abstentions have no effect on the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2014.

2


Table of Contents

    Under the rules that govern brokers holding shares for their customers, brokers who do not receive voting instructions from their customers have the discretion to vote uninstructed shares on routine matters, but do not have discretion to vote such uninstructed shares on non-routine matters. Only Proposal Two, the ratification of the appointment of Ernst & Young LLP, is considered a routine matter where brokers are permitted to vote shares held by them without instruction. If your shares are held through a broker, those shares will not be voted in the election of directors unless you affirmatively provide the broker instructions on how to vote.

Voting Instructions

 

If you complete and submit your proxy voting instructions, the persons named as proxies will follow your instructions. If you submit proxy voting instructions but do not direct how your shares should be voted on each item, the persons named as proxies will vote for the election of the nominees for director and for the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm. The persons named as proxies will vote on any other matters properly presented at the Annual Meeting in accordance with their best judgment, although we have not received timely notice of any other matters that may be properly presented for voting at the Annual Meeting.

Voting Results

 

We will announce preliminary results at the Annual Meeting. We will report final results by filing a Form 8-K within four business days after the Annual Meeting. If final results are not available at that time, we will provide preliminary voting results in the Form 8-K and will provide the final results in an amendment to the Form 8-K as soon as they become available.

Additional Solicitation/Costs

 

We are paying for the distribution of the proxy materials and solicitation of the proxies. As part of this process, we reimburse brokerage houses and other custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for forwarding proxy and solicitation materials to our stockholders. Proxy solicitation expenses that we will pay include those for preparation, mailing, returning and tabulating the proxies. Our directors, officers, and employees may also solicit proxies on our behalf in person, by telephone, email or facsimile, but they do not receive additional compensation for providing those services.

3


Table of Contents

Emerging Growth Company   We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 and, as such, have elected to comply with certain reduced public company reporting requirements. These reduced reporting requirements include reduced disclosure about our executive compensation arrangements and no non-binding advisory votes on executive compensation. We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of our initial public offering, (b) in which we have total annual gross revenue of at least $1.0 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior June 30 th , and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

Householding

 

If you are a beneficial owner of our common stock and there are multiple beneficial owners at the same address, you may receive fewer Notices or fewer paper copies of the Proxy Statement and the Annual Report on Form 10-K than the number of beneficial owners at that address. The rules of the Securities and Exchange Commission (the "SEC") permit American Stock Transfer & Trust Company, LLC, the Company's transfer agent ("AST"), to deliver only one Notice, Proxy Statement and Annual Report on Form 10-K to multiple beneficial owners sharing an address, unless we receive contrary instructions from any beneficial owner at the same address.

 

 

If you receive your proxy materials through AST and (1) you currently receive only one copy of the proxy materials at a shared address but you wish to receive an additional copy of this Proxy Statement and the Annual Report, or any future proxy statement or annual report or (2) you share an address with other beneficial owners who also receive their separate proxy materials through AST and you wish to request delivery of a single copy of the Annual Report on Form 10-K or the proxy statement to the shared address in the future, please contact Investor Relations at Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020 or call 888-400-4070 (toll free) or 801-523-3100.

4


Table of Contents


PROPOSAL ONE

ELECTION OF DIRECTORS

Number of Directors; Board Structure

        Our amended and restated certificate of incorporation and bylaws provide that the number of our directors shall be fixed from time to time by a resolution of the majority of our board of directors. Immediately prior to the Annual Meeting our board of directors will consist of seven members. Our board of directors is divided into three staggered classes of directors as nearly equal in number as possible. One class is elected each year at the annual meeting of stockholders for a term of three years. The term of the Class I directors expires at the Annual Meeting. The term of the Class II directors expires at the 2015 annual meeting and the term of the Class III directors expires at the 2016 annual meeting. After the initial terms expire, directors are expected to be elected to hold office for a three-year term or until the election and qualification of their successors in office.

        The following presents our current directors, their respective term on the board of directors, ages and positions and as of April 15, 2014:

Name
  Age   Position

Directors whose terms will expire at the 2014 Annual Meeting

         

Len Jordan(2)

    47   Director

Scott Petty(1)*

    50   Director

Steven Vassallo(2)

    42   Director

Directors whose terms will expire at the 2015 Annual Meeting

   
 
 

 

Rob Born(1)(3)

    46   Director

Directors whose terms will expire at the 2016 Annual Meeting

   
 
 

 

David C. Habiger(2)(3)

    45   Director

Christopher B. Paisley(1)(3)

    61   Director

Martin Plaehn

    56   President, Chief Executive
Officer and Chairman

(1)
Member of the Audit Committee

(2)
Member of the Compensation Committee

(3)
Member of the Nominating and Corporate Governance Committee

*
Mr. Petty will not stand for re-election at the 2014 Annual Meeting.


Nominees

        Based on the recommendation of the nominating and corporate governance committee of our board of directors, our board of directors has nominated Messrs. Len Jordan and Steven Vassallo for election as directors to serve for a three-year term ending at the 2017 annual meeting or until their successors are elected and qualified. Each of the nominees is a current member of our board of directors and has consented to serve if elected. Scott Petty will not stand for re-election at this Annual Meeting.

        Unless you direct otherwise through your proxy voting instructions, the persons named as proxies will vote all proxies received "for" the election of each nominee. If any nominee is unable or unwilling to serve at the time of the Annual Meeting, the persons named as proxies may vote for a substitute nominee chosen by the present board of directors. In the alternative, the proxies may vote only for the remaining nominees, leaving a vacancy on the board of directors. The board of directors may fill such

5


Table of Contents

vacancy at a later date or reduce the size of the board of directors. We have no reason to believe that any of the nominees will be unwilling or unable to serve if elected as a director.


Recommendation of the Board of Directors

THE BOARD RECOMMENDS THAT YOU VOTE "FOR" THE ELECTION OF EACH OF THE FOLLOWING NOMINEES.

        The biographies of each of the nominees and continuing directors below contain information regarding each such person's service as a director, business experience, director positions held currently or at any time during the last five years and the experiences, qualifications, attributes or skills that caused the nominating and corporate governance committee to determine that the person should serve as a director of the Company. In addition to the information presented below regarding each such person's specific experience, qualifications, attributes and skills that led the board of directors and its nominating and corporate governance committee to the conclusion that he or she should serve as a director, we also believe that each of our directors has a reputation for integrity, honesty and adherence to high ethical standards. Each of our directors has demonstrated business acumen and an ability to exercise sound judgment, as well as a commitment of service to our company and our board of directors. Finally, we value our directors' experience in relevant areas of business management and on other boards of directors and board committees.

        Our corporate governance guidelines also dictate that a majority of the board of directors be comprised of independent directors whom the board of directors has determined have no material relationship with the Company and who are otherwise "independent" directors under the published listing requirements of The NASDAQ Stock Market LLC (the "NASDAQ"). The Company has determined with the exception of Mr. Martin Plaehn, our President, Chief Executive Officer and Chairman, all of our other directors qualify as "independent" directors.


Nominees for Election for a Three-Year Term Ending at the 2017 Annual Meeting:

         Len Jordan has been a member of our board of directors since June 2004. Mr. Jordan has served as the managing director of Madrona Venture Group since 2012 and joined Madrona Venture Group in 2010. Additionally, Mr. Jordan served as a general partner of Frazier Technology Ventures since 2004. Prior to joining Frazier Technology Ventures, Mr. Jordan served as a senior vice president at RealNetworks, Inc. Mr. Jordan currently serves on the boards of several private companies. Mr. Jordan holds Bachelors of Science in finance and economics from the Eccles School of Business at the University of Utah.

        We believe that Mr. Jordan is qualified to serve as a director based on his experience as a seasoned investor and a current and former director of many companies and his knowledge of the industry in which we operate.

         Steven Vassallo has served as a member of our board of directors since March 2011. Mr. Vassallo joined Foundation Capital in 2007 and has been a general partner since 2011. Prior to that, Mr. Vassallo helped launch Ning, a consumer Internet service, from 2004 to 2006. Prior to that, Mr. Vassallo was director of engineering at Immersion Corporation, from 1999 to 2002. Mr. Vassallo earned a Bachelor of Science in mechanical engineering from Worcester Polytechnic Institute, a Master of Science in mechanical engineering from Stanford University and a Master of Business Administration from the Stanford Graduate School of Business.

        We believe that Mr. Vassallo is qualified to serve as a director based on his experience as a seasoned investor and a current and former director of many companies and his knowledge of the industry in which we operate.

6


Table of Contents


Director Continuing in Office Until the 2015 Annual Meeting

         Rob Born has been a member of our board of directors of directors since June 2011. From 2001 to 2014, Mr. Born served as a partner atThomas Weisel Venture Partners, an early stage technology venture capital fund. Mr. Born has served on the boards of several private companies in the past. Mr. Born also holds a Bachelor of Arts in English literature from Amherst College and a Master of Business Administration and a Juris Doctorate from Duke University. Mr. Born is also a member of the California State Bar.

        We believe that Mr. Born is qualified to serve as a director based on his experience as a seasoned investor and a current and former director of many companies and his knowledge of the industry in which we operate.


Directors Continuing in Office Until the 2016 Annual Meeting

         David C. Habiger has served as a member of our board of directors since September 2012. Mr. Habiger has served as a senior advisor to Silver Lake Partners and a venture partner at the Pritzker Group since 2013. From 2011 to 2012, Mr. Habiger served as chief executive officer of NDS Group Ltd., a provider of video software and content security solutions, and served in that role until shortly prior to the time that the NDS business was acquired by Cisco Systems. Prior to that, Mr. Habiger served as chief executive officer of Sonic Solutions, a provider of software for digital media prior to its sale to Rovi Corporation, from 2005 to 2011. Mr. Habiger currently serves as a member of the board of directors of three other public companies, RealD, a 3D and other visual technologies company, Echo Global Logistics, a provider of technology-enabled transportation and supply chain management solutions, and Textura, a software company for the commercial construction industry, as well as several private companies. Mr. Habiger holds a Bachelor of Business Administration from St. Norbert College and a Master of Business Administration from the University of Chicago.

        We believe that Mr. Habiger is qualified to serve as a director based on his service on other public company boards, his prior executive leadership and his experience in and knowledge of the industry in which we operate.

         Christopher B. Paisley has served as a member of our board of directors since May 2006. Mr. Paisley has served as the Dean's Executive Professor of Accounting and Finance at the Leavey School of Business at Santa Clara University since 2001. Mr. Paisley served as Chief Financial Officer of 3Com Corporation, a computer networking company, from 1985 to 2000. Mr. Paisley also serves on the boards of directors of Ambarella, a developer of video compression and image processing semiconductors; Bridge Capital Holdings, a bank holding company, Equinix, a provider of network colocation and managed services; Fortinet, a provider of unified threat management solutions; and YuMe, a digital media advertising company. He also served as Chairman of the Board of Volterra Semiconductor, a provider of power management semiconductors, and 3Par, a provider of utility storage solutions, during the past five years. Mr. Paisley holds a Bachelor of Arts in business economics from the University of California at Santa Barbara and a Master of Business Administration from the Anderson School at the University of California at Los Angeles.

        We believe that Mr. Paisley is qualified to serve as a director based on his expertise in finance, including accounting and financial reporting, as a chief financial officer and in other finance roles and as a professor in the field of accounting and finance and his service on other public company boards.

         Martin Plaehn has served as our President and Chief Executive Officer, and a member of our board of directors since September 2011, and as chairperson of the board of directors since January 1, 2014. Prior to joining our company, Mr. Plaehn served as senior vice president of product and service development at RealNetworks, Inc., a provider of Internet media delivery software and services, from 2010 to 2011. Prior to that, Mr. Plaehn served as an advisor to chief executive officers, executive teams

7


Table of Contents

and investors for technology companies from 2008 to 2010. Prior to that, Mr. Plaehn served as the president and chief executive officer at Bungee Labs, a cloud computing and platform-as-a-service company, from 2006 to 2008. Prior to that, Mr. Plaehn served as executive vice president of technology products and services at RealNetworks, Inc., from 1999 through 2004, and then led RealNetworks, Inc.'s casual games division from 2004 to 2005. Prior to that, Mr. Plaehn served as chairman and chief executive officer of Viewpoint Digital, which was acquired by CA, Inc., an information technology management company, in 1998. Mr. Plaehn holds a Bachelor of Arts in mathematics from the University of California, San Diego and is a graduate of the Executive Program for Scientists and Engineers at the University of California, San Diego.

        We believe that Mr. Plaehn is qualified to serve as a director based on the perspective and experience he brings as our President and Chief Executive Officer and his experience as a seasoned executive.


Executive Officers

        The following presents our current executive officers, their respective ages and positions and as of April 15, 2014:

Name
  Age   Position

Martin Plaehn

    56   President, Chief Executive Officer and Chairman

Dan Strong

    55   Chief Financial Officer

Eric Anderson

    55   Senior Vice President, Products

James B. Arnold

    57   Senior Vice President, Sales

Greg Bishop

    55   General Counsel, Chief Compliance Officer and Corporate Secretary

Susan Cashen

    53   Senior Vice President, Marketing

Jeff Dungan

    42   Senior Vice President, Supply Chain Operations and Senior Vice President, Business Development

         Dan Strong has served as our Chief Financial Officer since January 2008. Prior to joining our company, Mr. Strong served as the chief financial officer at iBAHN, a hospitality networking company, from 2004 to 2008. Prior to joining iBAHN, Mr. Strong served as vice president of financial planning and analysis, vice president and corporate controller, and interim chief financial officer at Iomega Corporation, a producer of storage hardware, from 1996 to 2004. Mr. Strong has also held executive-level corporate finance positions at Campus Pipeline, Inc., a developer of software for colleges and universities. Mr. Strong holds a Bachelor of Science in accounting from the Eccles School of Business at the University of Utah.

         Eric Anderson has served as our Senior Vice President, Products, since June 2012. Prior to joining our company, Mr. Anderson was vice president, product management at NetIQ Corporation, a software company, from 2011 to 2012. Prior to that, Mr. Anderson held various executive positions at Novell, Inc., a security management software company, from 2006 to 2011, including chief technology officer and vice president of product management. Prior to that, Mr. Anderson, served in various management positions at BMC Software, Inc., a business service management software company, and Compaq Computer Corporation. Mr. Anderson holds a Bachelor of Science in marketing and a Master of Business Administration from Brigham Young University.

         James B. Arnold has served as our Senior Vice President, Sales, since February 2007. Prior to joining our company, Mr. Arnold served as senior vice president of sales and distribution at DIRECTV, Inc. from 2002 to 2006. Mr. Arnold holds a Bachelor of Arts in psychology and sociology from Washington University in St. Louis.

         Greg Bishop has served as our Vice President and General Counsel since March 2008, and as our Chief Compliance Officer and Corporate Secretary since January 2013. Prior to joining our company,

8


Table of Contents

Mr. Bishop operated his own legal consulting firm, Outsourced GC, PLLC, from 2004 to 2008. Prior to that, Mr. Bishop was general counsel of Murex S.A. in Paris, France, a developer of software solutions for large financial institutions, from 2002 to 2004. Prior to that, Mr. Bishop held executive-level legal positions at Campus Pipeline, Inc., a developer of a software platform for colleges and universities, and Iomega Corporation, a producer of storage hardware. Prior to that, Mr. Bishop worked as legal counsel for Corning, Incorporated, and prior to that, Mr. Bishop worked for eight years as a commercial litigation associate for three law firms in Washington, D.C. Mr. Bishop holds a Bachelor of Arts in English literature, a Master of Business Administration and a Juris Doctorate from Brigham Young University.

         Susan Cashen has served as our Senior Vice President, Marketing, since June 2010. Prior to that, Ms. Cashen managed marketing for our company's energy business unit from 2009 to 2010. Prior to joining our company, Ms. Cashen served as vice president of marketing at MyWaves, a mobile video service, from 2006 to 2009. Prior to that, Ms. Cashen served as the vice president of communications and vice president of marketing at TiVo Inc. from 2000 to 2005. Ms. Cashen holds a Bachelor of Arts in Russian studies from Hamilton College.

         Jeff Dungan has served as our Senior Vice President, Business Development, since April 2010, and our Senior Vice President, Supply Chain/Manufacturing, since June 2006. Prior to joining our company, Mr. Dungan held positions of senior director of information technology operations and general and administrative business solutions for BEA Systems, an enterprise infrastructure software products company, from 2001 to 2006. Mr. Dungan holds a Bachelor of Science in computer and electrical engineering from Colorado State University.

9


Table of Contents


CORPORATE GOVERNANCE

Meetings of the Board of Directors

        Our board of directors held ten (10) regular and special meetings in 2013. During their respective terms of service, each director attended at least 75% of all meetings of the board of directors and the committees on which they served, which were held during 2013. Under our corporate governance guidelines, directors are expected to be active and engaged in discharging their duties and to keep themselves informed about our business and operations. Directors are also expected to try to attend our annual meeting of stockholders, all meetings of the board of directors and all meetings of the committees on which they serve.


Code of Business Conduct and Ethics

        We are committed to the highest standards of integrity and ethics in the way we conduct our business. In 2013, our board of directors adopted a Code of Business Conduct and Ethics, which applies to all of our employees, officers and directors, including our chief executive officer, our chief financial officer, and our other executive and senior officers. Our Code of Business Conduct and Ethics establishes our policies and expectations with respect to a wide range of business conduct, including the preparation and maintenance of our financial and accounting information, our compliance with laws, and possible conflicts of interest.

        Under our Code of Business Conduct and Ethics, each of our directors and employees is required to report suspected or actual violations to the extent permitted by law. In addition, we have adopted separate procedures concerning the receipt and investigations of complaints relating to accounting or audit matters. These procedures have been adopted by the board of directors and are administered by our audit committee.

        A copy of our Code of Business Conduct and Ethics is available on our Internet website at www.control4.com by clicking through "Company," "Investor Relations," and "Corporate Governance," and may also be obtained without charge by contacting our Corporate Secretary at Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020. We intend to post any amendments to or waivers from our Code of Business Conduct and Ethics (to the extent applicable to our chief executive officer, principal financial officer or principal accounting officer) on our website.


Independence of the Board of Directors

        Consistent with our corporate governance guidelines and NASDAQ rules, our board of directors has determined that, as of the date of this Proxy Statement, six out of the seven members of our board of directors are "independent," the non-independent member being Martin Plaehn, our President, Chief Executive Officer and Chairman. In addition, all members of the audit, compensation and nominating and corporate governance committees satisfy the applicable independence criteria of the Securities and Exchange Commission and NASDAQ.


Identifying and Evaluating Director Nominees

        The board of directors is responsible for selecting its own members. The board of directors delegates the selection and nomination process to the nominating and corporate governance committee, with the expectation that other members of the board of directors, and management, will be requested to take part in the process as appropriate.

        Generally, the nominating and corporate governance committee identifies candidates for director nominees in consultation with management, through the use of search firms or other advisors, through the recommendations submitted by stockholders or through such other methods as the nominating and corporate governance committee deems to be helpful to identify candidates. Once candidates have been

10


Table of Contents

identified, the nominating and corporate governance committee confirms that the candidates meet all of the minimum qualifications for director nominees established by the nominating and corporate governance committee. The nominating and corporate governance committee may gather information about the candidates through interviews, detailed questionnaires, comprehensive background checks or any other means that the nominating and corporate governance committee deems to be appropriate in the evaluation process. The nominating and corporate governance committee then meets as a group to discuss and evaluate the qualities and skills of each candidate, both on an individual basis and taking into account the overall composition and needs of the board of directors. Based on the results of the evaluation process, the nominating and corporate governance committee recommends candidates for the board of directors' approval as director nominees for election to the board of directors.


    Minimum Qualifications

        The nominating and corporate governance committee will consider, among other things, the following qualifications, skills and attributes when recommending candidates for the board of directors' selection as nominees for the board of directors and as candidates for appointment to the board of directors' committees. The nominee shall have the highest personal and professional integrity, shall have demonstrated exceptional ability and judgment, and shall be most effective, in conjunction with the other nominees to the board of directors, in collectively serving the long-term interests of the stockholders.

        In evaluating proposed director candidates, the nominating and corporate governance committee may consider, in addition to the minimum qualifications and other criteria for board of directors membership approved by the board of directors from time to time, all facts and circumstances that it deems appropriate or advisable, including, among other things, the skills of the proposed director candidate, his or her depth and breadth of professional experience or other background characteristics, his or her independence and the needs of the board of directors.


    Stockholder Recommendations

        Stockholders may submit recommendations for director candidates to the nominating and corporate governance committee by sending the individual's name and qualifications to our Secretary at Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020, who will forward all recommendations to the nominating and corporate governance committee. The nominating and corporate governance committee will evaluate any candidates recommended by stockholders against the same criteria and pursuant to the same policies and procedures applicable to the evaluation of candidates proposed by directors or management.


Stockholder Communications

        The board of directors provides to every stockholder the ability to communicate with the board of directors, as a whole, and with individual directors on the board of directors through an established process for stockholder communication. For a stockholder communication directed to the board of directors as a whole, stockholders may send such communication to the attention of the Chairman of the Board via U.S. Mail or Expedited Delivery Service to: Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020, Attn: Chairman of the Board.

        For a stockholder communication directed to an individual director in his or her capacity as a member of the board of directors, stockholders may send such communication to the attention of the individual director via U.S. Mail or Expedited Delivery Service to:Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020, Attn: [Name of Individual Director].

        We will forward by U.S. Mail any such stockholder communication to each director, and the Chairman of the Board in his or her capacity as a representative of the board of directors, to whom

11


Table of Contents

such stockholder communication is addressed to the address specified by each such director and the Chairman of the Board, unless there are safety or security concerns that mitigate against further transmission.


Board Leadership Structure

        Our board of directors currently believes that our company is best served by combining the roles of chairman of the board and chief executive officer, coupled with a lead independent director. Our board of directors believes that as chief executive officer, Mr. Plaehn is the director most familiar with our business and industry and most capable of effectively identifying strategic priorities and leading discussion and execution of strategy. Our independent directors bring experience, oversight and expertise from outside the Company, while our chief executive officer brings company-specific experience and expertise. Our board of directors believes that the combined role of chairman and chief executive officer is the best leadership structure for us at the current time as it promotes the efficient and effective development and execution of our strategy and facilitates information flow between management and our board of directors. The board of directors recognizes, however, that no single leadership model is right for all companies at all times. Our corporate governance guidelines provide that the board of directors should be free to choose a chairperson of the board based upon the board's view of what is in the best interests of the Company. Accordingly, the board of directors periodically reviews its leadership structure.

        In December 2013, our board of directors appointed Chris Paisley as lead independent director. As the lead independent director, Mr. Paisley is responsible for coordinating the activities of the independent directors. Among other things, the lead independent director has the following specific responsibilities:

    Call special meetings of the independent directors and chair meetings of independent directors;

    Act as the principal liaison between the non-employee directors and the chairperson of the board on sensitive issues;

    Work with the chairperson of the board to develop a schedule of meetings for the board of directors and provide input with respect to meeting agendas for the board of directors and its committees;

    Advise the chairperson of the board with respect to the quality, quantity and timeliness of the flow of information from Company management;

    Coordinate and moderate executive sessions of the independent directors; and

    Perform such other duties as the board of directors may from time to time delegate to the lead independent director.


Board's Role in Risk Oversight

        The board of directors' role in overseeing the management of our risks is conducted primarily through committees of the board of directors, as disclosed in the charters of each of the committees. The full board of directors (or the appropriate board of directors committee in the case of risks that are under the purview of a particular committee) discusses with management our major risk exposures, their potential impact on our company, and the steps we take to manage them. When a board of directors committee is responsible for evaluating and overseeing the management of a particular risk or risks, the chairman of the relevant committee reports on the discussion to the full board of directors during the committee reports portion of the next board of directors meeting. This enables to the board of directors and its committees to coordinate the risk oversight role, particularly with respect to risk interrelationships.

12


Table of Contents


Risks Related to Compensation Policies and Practices

        When determining our compensation policies and practices, our compensation committee and board of directors considered various matters relative to the development of a reasonable and prudent compensation program, including whether the policies and practices were reasonably likely to have a material adverse effect on us. We believe that the mix and design of our executive compensation plans and policies do not encourage management to assume excessive risks and are not reasonably likely to have a material adverse effect on us for the following reasons: we offer an appropriate balance of short- and long-term incentives and fixed and variable amounts; our variable compensation is based on a balanced mix of criteria; and our compensation committee has the authority to adjust variable compensation as appropriate.


Board Committees

        Our board of directors has an audit committee, a compensation committee and a nominating and corporate governance committee, each of which has the composition and responsibilities described below. The audit committee, compensation committee and nominating and corporate governance committee all operate under charters approved by our board of directors (copies of which can be found on our website by visiting www.control4.com and clicking through "Company," "Investor Relations," and "Corporate Governance"). Our board of directors may from time to time establish other committees.


        Audit Committee.     Our audit committee oversees our corporate accounting and financial reporting process and assists the board of directors in monitoring our financial systems and our legal and regulatory compliance. Our audit committee will also:

    Oversee the work of our independent auditors;

    Approve the hiring, discharging and compensation of our independent auditors;

    Approve engagements of the independent auditors to render any audit or permissible non-audit services;

    Review the qualifications and independence of the independent auditors;

    Monitor the rotation of partners of the independent auditors on our engagement team as required by law;

    Review our financial statements and review our critical accounting policies and estimates;

    Review the adequacy and effectiveness of our internal controls; and

    Review and discuss with management and the independent auditors the results of our annual audit and our quarterly financial statements.

        The members of our audit committee are Messrs. Born, Paisley and Petty. Mr. Paisley is our audit committee chairperson. Our board of directors has concluded that the composition of our audit committee meets the requirements for independence under, and the functioning of our audit committee complies with, the current requirements of applicable SEC and NASDAQ rules, and that Mr. Paisley is our audit committee financial expert as defined under applicable SEC rules. Mr. Petty will not stand for re-election at this Annual Meeting. The audit committee held four meetings during 2013.


        Compensation Committee.     Our compensation committee oversees our corporate compensation programs. The compensation committee's responsibilities include:

    Reviewing and approving corporate goals and objectives relevant to compensation of our chief executive officer;

13


Table of Contents

    Evaluating the performance of our chief executive officer in light of established goals and objectives, and determining the compensation of our chief executive officer;

    Reviewing and approving compensation of our other executive officers;

    Reviewing and establishing our overall management compensation, philosophy and policy;

    Overseeing and administering our compensation and similar plans;

    Evaluating and assessing potential and current compensation advisors in accordance with the independence standards in the applicable NASDAQ rules;

    Retaining and approving the compensation of any compensation advisers;

    Reviewing and approving our policies and procedures for the grant of equity-based awards;

    Reviewing and making recommendations to the board of directors with respect to the compensation of our directors;

    Preparing the compensation committee report required by SEC rules to be included in our annual proxy statement or Annual Report on Form 10-K; and

    Reviewing and discussing with management the compensation disclosure required to be included in our annual proxy statement or Annual Report on Form 10-K.

        In reviewing and approving these matters, our compensation committee considers such matters as it deems appropriate, including our financial and operating performance, the alignment of interests of our executive officers and our stockholders and our ability to attract and retain qualified individuals. For executive compensation decisions, our compensation committee typically considers the recommendations of our chief executive officer other than with respect to decisions related to his own compensation.

        Our compensation committee has not established any formal policies or guidelines for allocating compensation between current and long-term equity compensation, or between cash and non-cash compensation. In determining the amount and mix of compensation elements and whether each element provides the correct incentives and rewards for performance consistent with our short-term and long-term goals and objectives, our compensation committee relies on its judgment about each individual's performance in a rapidly changing business environment rather than adopting a formulaic approach to compensatory decisions that are too narrowly responsive to short-term changes in business performance. In making determinations about performance, our compensation committee does not solely rely on formal goals or metrics, but rather takes into account input from appropriate members of management with respect to an individual's performance, as well as its own observations.

        Our compensation committee has the authority under its charter to engage the services of a consulting firm or other outside advisor to assist it in designing our compensation programs and in making compensation decisions but has not engaged the services of a compensation consultant to date.

        The members of our compensation committee are Messrs. Habiger, Jordan and Vassallo. Mr. Habiger is the chairperson of our compensation committee. Our board of directors has determined that each member of our compensation committee is independent under the applicable NASDAQ rules and SEC rules and regulations, is an "outside director" for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended, and is a "non-employee director" for purposes of Section 16 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The compensation committee held three meetings during 2013.


        Nominating and Corporate Governance Committee.     Our nominating and corporate governance committee oversees and assists our board of directors in reviewing and recommending corporate

14


Table of Contents

governance policies and nominees for election to our board of directors. The nominating and corporate governance committee will also:

    Evaluate and make recommendations regarding the organization and governance of the board of directors and its committees;

    Assess the performance of members of the board of directors and make recommendations regarding committee and chair assignments;

    Recommend desired qualifications for board of directors membership and conduct searches for potential members of the board of directors; and

    Review and make recommendations with regard to our corporate governance guidelines.

        The members of our nominating and corporate governance committee are Messrs. Born, Habiger and Paisley. Mr. Born is the chairperson of our nominating and corporate governance committee. Our board of directors has determined that each member of our nominating and corporate governance committee is independent under the applicable NASDAQ rules. The nominating and corporate governance committee held two meetings during 2013.


Director Compensation

        Upon our initial public offering, we implemented a director compensation policy. We believe that a combination of cash and equity compensation is appropriate to attract and retain the individuals we desire to serve on our board of directors and that this approach is comparable to the policies of our peers. More specifically, our cash compensation policies are designed to encourage frequent and active interaction between directors and our executives both during and between formal meetings as well as compensate our directors for their time and effort. Further, we believe it is important to align the long-term interests of our non-employee directors with those of the Company and its stockholders and that awarding equity compensation to, and thereby increasing ownership of our common stock by, our non-employee directors is an appropriate means to achieve this alignment.

        In March 2014, our board of directors amended our director compensation policy regarding cash compensation and grants of equity compensation for "Qualifying Directors." To meet the requirements of being a "Qualifying Director," a director (A) cannot be an employee or officer of the Company or any of its subsidiaries, and (B) cannot have the ability to influence or direct investment decisions concerning the ownership of Company securities for an investment fund, venture capital fund, partnership or similar entity.

        Our Qualifying Directors receive an annual cash retainer for board and committee service in addition to equity compensation, as set forth in further detail in the table below.

Cash Compensation

        Qualifying Directors are entitled to receive the following annual cash compensation for their services:

Retainer

  $ 36,000  

Additional retainer for audit committee chairperson

  $ 22,000  

Additional retainer for other audit committee members

  $ 12,000  

Additional retainer for compensation committee chairperson

  $ 12,000  

Additional retainer for other compensation committee members

  $ 6,000  

Additional retainer for nominating and corporate governance chairperson

  $ 9,000  

Additional retainer for other nominating and corporate governance members

  $ 6,000  

Additional retainer for chairperson of the board of directors

  $ 24,000  

15


Table of Contents

Equity Compensation

        Each Qualifying Director who first joins our board of directors, and each existing director who subsequently meets the requirements of a Qualifying Director for the first time, will be granted stock options and/or restricted stock units ("RSUs"), at the Company's option, with a combined value of $140,000 (such options and/or RSUs to vest in equal annual installments over a three year period from the date of grant). In addition, each Qualifying Director who has served as a Qualifying Director of the Company for a minimum of nine months prior to the Company's annual meeting of stockholders will be granted additional stock options and/or RSUs, at the Company's option, with a combined value of $75,000 (such options and/or RSUs to vest in equal quarterly installments over a one year period from the date of grant).


2013 Director Compensation

        The following table sets forth information concerning compensation paid or accrued for services rendered to us by the non-employee members of our board of directors for the fiscal year ended December 31, 2013. The compensation received during 2013 by Mr. Plaehn and Mr. West for their service as employees is reflected under "Executive Compensation—Summary Compensation Table" below.

Name
  Paid
in Cash
($)
  Option
Awards
($)(1)
  Total
($)
 

Rob Born

             

David C. Habiger(2)

    22,500         22,500  

Len Jordan

             

Thomas R. Kuhn(3)

             

Christopher B. Paisley(4)

    26,667         26,667  

Scott Petty

             

Steven Vassallo

             

(1)
The amounts reported in the Option Awards column represent the grant date fair value of the stock options granted to the non-employee directors during 2013, computed in accordance with ASC Topic 718. The assumptions used in calculating the grant date fair value of the stock options reported in the Option Awards column are set forth in Note 1 in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013. The amounts reported in this column reflect the accounting cost for these stock-based awards, and do not correspond to the actual economic value that may be received by the non-employee directors from the awards.

(2)
As of December 31, 2013, Mr. Habiger held an option to purchase 23,076 shares of our common stock.

(3)
As of December 31, 2013, Mr. Kuhn held an option to purchase 46,834 shares of our common stock. Mr. Kuhn resigned from our board of directors effective on February 28, 2013.

(4)
As of December 31, 2013, Mr. Paisley held options to purchase 35,193 shares of our common stock.

16


Table of Contents


PROPOSAL TWO

RATIFICATION OF THE APPOINTMENT OF
OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

        We have appointed Ernst & Young LLP as our independent registered public accounting firm to perform the audit of our consolidated financial statements for the fiscal year ending December 31, 2014, and we are asking you and other stockholders to ratify this appointment. Ernst & Young LLP has served as our independent registered public accounting firm since the inception of the Company in 2003.

        The audit committee annually reviews the independent registered public accounting firm's independence, including reviewing all relationships between the independent registered public accounting firm and us and any disclosed relationships or services that may impact the objectivity and independence of the independent registered public accounting firm, and the independent registered public accounting firm's performance. As a matter of good corporate governance, the board of directors determined to submit to stockholders for ratification the appointment of Ernst & Young LLP. A majority of the votes properly cast is required in order to ratify the appointment of Ernst & Young LLP. In the event that a majority of the votes properly cast do not ratify this appointment of Ernst & Young LLP, we will review our future appointment of Ernst & Young LLP.

        We expect that a representative of Ernst & Young LLP will attend the Annual Meeting and the representative will have an opportunity to make a statement if he or she so chooses. The representative will also be available to respond to appropriate questions from stockholders.


Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm

        In connection with our initial public offering, we adopted a policy under which the audit committee must pre-approve all audit and permissible non-audit services to be provided by the independent registered public accounting firm. These services may include audit services, audit-related services, tax services and other services. Pre-approval would generally be requested annually, with any pre-approval detailed as to the particular service, which must be classified in one of the four categories of services listed below. The audit committee may also, on a case-by-case basis, pre-approve particular services that are not contained in the annual pre-approval request. In connection with this pre-approval policy, the audit committee also considers whether the categories of pre-approved services are consistent with the rules on accountant independence of the SEC and the Public Company Accounting Oversight Board.

        In addition, in the event time constraints require pre-approval prior to the audit committee's next scheduled meeting, the audit committee has authorized its Chairperson to pre-approve services. Engagements so pre-approved are to be reported to the audit committee at its next scheduled meeting.

17


Table of Contents


Audit Fees

        The following table sets forth the fees billed by Ernst & Young LLP for audit, audit-related, tax and all other services rendered for 2013 and 2012:

Fee Category
  2013   2012  

Audit Fees

  $ 1,293,065   $ 111,995  

Audit-Related Fees

         

Tax Fees

        4,461  

All Other Fees

    2,355      
           

Total Fees

  $ 1,295,420   $ 116,456  
           
           

        Audit Fees.     Consist of aggregate fees for professional services provided in connection with the annual audit of our consolidated financial statements, the review of our quarterly condensed consolidated financial statements, consultations on accounting matters directly related to the audit, and comfort letters, consents and assistance with and review of documents filed with the SEC.

        Audit-Related Fees.     Consist of aggregate fees for accounting consultations and other services that were reasonably related to the performance of audits or reviews of our consolidated financial statements and were not reported above under "Audit Fees".

        Tax Fees.     Consist of aggregate fees for tax compliance, tax advice and tax planning services including the review and preparation of our federal and state income tax returns.

        All Other Fees.     Consist of aggregate fees billed for products and services provided by the independent registered public accounting firm other than those disclosed above. These fees consisted of an amount paid for the use of an online accounting research tool.

        The audit committee pre-approved all services performed since the pre-approval policy was adopted.


Recommendation of the Board of Directors

THE BOARD RECOMMENDS THAT YOU VOTE "FOR" RATIFICATION OF THE APPOINTMENT OF ERNST & YOUNG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2014.


Report of the Audit Committee of the Board of Directors

        The information contained in this audit committee report shall not be deemed to be (1) "soliciting material," (2) "filed" with the SEC, (3) subject to Regulations 14A or 14C of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or (4) subject to the liabilities of Section 18 of the Exchange Act. No portion of this audit committee report shall be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, through any general statement incorporating by reference in its entirety the Proxy Statement in which this report appears, except to the extent that Control4 Corporation (the "Company") specifically incorporates this report or a portion of it by reference. In addition, this report shall not be deemed filed under either the Securities Act or the Exchange Act.

        This report is submitted by the audit committee of the board of directors of the Company (the "Board"). The audit committee consists of the three directors whose names appear below. None of the members of the audit committee is an officer or employee of the Company, and the Board has determined that each member of the audit committee is "independent" for audit committee purposes as that term is defined under Rule 10A-3 of the Exchange Act, and the applicable rules of The

18


Table of Contents

NASDAQ Stock Exchange LLC ("NASDAQ"). Each member of the audit committee meets the requirements for financial literacy under the applicable rules and regulations of the SEC and NASDAQ. The Board has designated Mr. Paisley as an "audit committee financial expert," as defined under the applicable rules of the SEC. The audit committee operates under a written charter adopted by the Board.

        The audit committee's general role is to assist the Board in monitoring our financial reporting process and related matters. Its specific responsibilities are set forth in its charter.

        The audit committee has reviewed the Company's consolidated financial statements for 2013 and met with management, as well as with representatives of Ernst & Young LLP, the Company's independent registered public accounting firm, to discuss the consolidated financial statements. The audit committee also discussed with members of Ernst & Young LLP the matters required to be discussed by the Statement on Auditing Standards No. 61, as amended (AICPA Professional Standards  Vol. 1. AU Section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T.

        In addition, the audit committee received the written disclosures and the letter from Ernst & Young LLP required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant's communications with the audit committee concerning independence, and discussed with members of Ernst & Young LLP its independence.

        Based on these discussions, the financial statement review and other matters it deemed relevant, the audit committee recommended to the Board that the Company's audited consolidated financial statements for 2013 be included in its Annual Report on Form 10-K for 2013.

19


Table of Contents


SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

        The following table sets forth certain information known to us regarding the beneficial ownership of our common stock as of March 1, 2014, for:

        Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Except as noted by footnote, and subject to community property laws where applicable, we believe, based on the information provided to us, that the persons and entities named in the table below have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them.

        The table lists applicable percentage ownership based on 23,546,219 shares of common stock outstanding as of March 1, 2014. Options to purchase shares of our common stock that are exercisable within 60 days of March 1, 2014, are deemed to be beneficially owned by the persons holding these options for the purpose of computing percentage ownership of that person, but are not treated as outstanding for the purpose of computing any other person's ownership percentage. Unless otherwise indicated, the address for each beneficial owner is c/oControl4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020.

 
  Shares Beneficially
Owned
 
Name and Address of Beneficial Owner
  Shares   Percentage  

5% Stockholders:

             

Entities affiliated with Foundation Capital(1)

    3,577,358     15.2 %

Entities affiliated with Thomas Weisel Venture Partners(2)

    2,277,886     9.7  

Frazier Technology Ventures II, L.P.(3)

    2,188,168     9.3  

Entities affiliated with Signal Peak Ventures(4)

    2,164,751     9.2  

Cisco Systems, Inc.(5)

    1,689,396     7.2  

T. Rowe Price Associates, Inc.(6)

    1,408,310     6.0  

Named Executive Officers and Directors:

   
 
   
 
 

Martin Plaehn(7)

    449,299     1.9  

Greg Bishop(8)

    71,011     *  

Susan Cashen(9)

    83,009     *  

Rob Born(10)

    2,277,940     9.7  

David C. Habiger(11)

    12,179     *  

Len Jordan(12)

    2,188,168     9.3  

Christopher B. Paisley(13)

    78,223     *  

Scott Petty(14)

    2,164,751     9.2  

Steven Vassallo(15)

    243,016     1.0  

William B. West(16)

    686,695     2.9  

All executive officers and directors as a group (14 persons)(17)

    8,805,664     35.0  

*
Represents beneficial ownership of less than 1%.

(1)
Consists of (i) 37,559 shares held of record by FC IV Active Advisors Fund, LLC ("FC Active Advisors"); (ii) 40,364 shares held of record by Foundation Capital IV Principals Fund, LLC

20


Table of Contents

    ("Foundation IV Principals"); (iii) 3,256,419 shares held of record by Foundation Capital IV, L.P. ("Foundation IV"); (iv) 2,684 shares held of record by Foundation Capital VI Principals Fund L.L.C. ("Foundation VI Principals"); and (v) 240,332 shares held of record by Foundation Capital VI, L.P. ("Foundation VI"). Foundation Capital Management Co. IV, LLC ("FC4M") serves as the sole manager of Foundation IV, Foundation IV Principals and FC Active Advisors. William Elmore, Kathryn Gould, Paul Koontz, Mike Schuh, Paul Holland and Warren Weiss are managing members of FC4M. FC4M exercises sole voting and investment power over the shares held by Foundation IV, Foundation IV Principals and FC Active Advisors. As managing members of FC4M, Ms. Gould and Messrs. Elmore, Koontz, Schuh, Holland and Weiss may be deemed to share voting and investment power over the shares held by Foundation IV, Foundation IV Principals and FC Active Advisors. Each of the managing members of FC4M disclaims beneficial ownership of the securities held by Foundation IV, Foundation IV Principals and FC Active Advisors, except to the extent of his or her pecuniary interest therein. Foundation Capital Management Co. VI, LLC ("FC6M") serves as the sole manager of Foundation VI and Foundation VI Principals. William Elmore, Paul Koontz, Mike Schuh, Paul Holland, Richard Redelfs, AshmeetSidana, Charles Moldow, Steve Vassallo, one of our directors, and Warren Weiss are managing members of FC6M. FC6M exercises sole voting and investment power over the shares held by Foundation VI and Foundation VI Principals. As managing members of FC6M, Messrs. Elmore, Koontz, Schuh, Holland, Redelfs, Sidana, Moldow, Vassallo and Weiss may be deemed to share voting and investment power over the shares held by Foundation VI and Foundation VI Principals. Each of the managing members of FC6M disclaims beneficial ownership of the reported securities, except to the extent of his pecuniary interest therein. The address for these entities is 250 Middlefield Road, Menlo Park, California 94025.

(2)
Consists of (i) 2,226,754 shares held of record by Thomas Weisel Venture Partners, L.P. ("TWVP"); (ii) 18,476 shares held of record by Thomas Weisel Venture Partners Employee Fund, L.P. ("TWVP Employee Fund"); (iii) 197 shares held by Thomas Weisel Capital Management LLC ("TWCM"); and (iv) 32,459 shares held by Thomas Weisel Venture Partners LLC ("TWVP LLC"). TWVP LLC is the sole general partner of TWVP and TWCM is the sole general partner of TWVP Employee Fund. Rob Born, one of our directors, was the fund manager for TWVP, TWVP Employee Fund, TWCM and TWVP LLC as of March 1, 2014 (but resigned from such role as of March 21, 2014), and may be deemed to have voting and dispositive power of the shares held by TWVP and TWVP Employee Fund. The address for these entities is Thomas Weisel Venture Partners, One Montgomery Street, 37 th  Floor, San Francisco, California 94104.

(3)
All shares are held of record by Frazier Technology Ventures II, L.P. ("Frazier"). FTVM II, L.P. ("FTVM") is the sole general partner of Frazier, and Frazier Technology Management, L.L.C. ("Frazier Tech Management") is the sole general partner of FTVM. Frazier Tech Management exercises sole voting and investment power over the shares held by Frazier. Each of Scott Darling, Paul Bialek, Frazier Management LLC and Len Jordan, one of our directors, is a managing member of Frazier Tech Management and may be deemed to share voting and investment power of the shares held by Frazier. The address for Frazier is 601 Union Street, Suite 3200, Seattle, Washington 98101.

(4)
Consists of (i) 41,752 shares held of record by vSpring III D, L.P. ("vSpring III D"); (ii) 149,039 shares held of record by vSpring III, L.P. ("vSpring III"); (iii) 826 shares held of record by vSpring Partners III, L.P. ("vSpring Partners"); and (iv) 1,973,134 shares held of record by vSpring SBIC, L.P. ("vSpring SBIC"). vSpring Management III D, L.L.C. ("vSpring Management III D") is the sole general partner of vSpring III D. vSpring Management III D exercises sole voting and investment power over the shares held by vSpring III D. Each of Scott Petty, one of our directors, Dinesh Patel, Ron Heinz and Brandon Tidwell is a managing member of vSpring

21


Table of Contents

    Management III D and may be deemed to share voting and investment power over the shares held by vSpring III D. vSpring Management III, L.L.C. ("vSpring Management III") is the sole general partner of vSpring III and vSpring Partners. vSpring Management III exercises sole voting and investment power over the shares held by vSpring III and vSpring Partners. Each of Scott Petty, Dinesh Patel, Ron Heinz and Brandon Tidwell is a managing member of vSpring Management III and may be deemed to share voting and investment power over the shares held by vSpring III and vSpring Partners. vSpring SBIC Management, L.L.C. ("vSpring SBIC Management") is the sole general partner of vSpring SBIC. vSpring SBIC Management exercises sole voting and investment power over the shares held by vSpring SBIC. Each of Scott Petty and Dinesh Patel is a managing member of vSpring SBIC Management and may be deemed to share voting and investment power over the shares held by vSpring SBIC. The address for these entities is 2795 E. Cottonwood Parkway, Suite 360, Salt Lake City, Utah 84121.

(5)
Based solely on information reported on a Schedule 13G filed with the SEC on February 13, 2014, by Cisco Systems International B.V. and affiliated entities ("Cisco").Cisco has sole voting and dispositive power over these securities. The address for Cisco is 170 West Tasman Drive, San Jose, California 95134.

(6)
Based solely on information reported on a Schedule 13G filed with the SEC on February 12, 2014, by T. Rowe Price Associates, Inc., consists of 1,408,310 shares beneficially held by T. Rowe Price Associates Inc., 152,800 shares for which T. Rowe Price Associates, Inc. possesses sole voting power and 1,408,310 shares for which T. Rowe Price Associates, Inc. possess sole dispositive power. The principal address for T. Rowe Price Associates, Inc. is 100 E. Pratt Street, Baltimore, Maryland 21202.

(7)
Consists of options to purchase 449,299 shares exercisable within 60 days of March 1, 2014.

(8)
Consists of options to purchase 71,011 shares exercisable within 60 days of March 1, 2014.

(9)
Consists of options to purchase 83,009 shares exercisable within 60 days of March 1, 2014.

(10)
Consists of (i) 54 shares held of record by Mr. Born and (ii) the shares held of record by TWVP, TWVP Employee Fund, TWCM, and TWVP LLC as disclosed in footnote (2) above. Mr. Born was a fund manager for TWVP, TWVP Employee Fund, TWCM, and TWVP LLC as of March 1, 2014, but resigned from such role as of March 21, 2014, and may be deemed to share voting and dispositive power of the shares held by TWVP, TWVP Employee Fund, TWCM, and TWVP LLC as of March 1, 2014.

(11)
Consists of options to purchase 12,179 shares exercisable within 60 days of March 1, 2014.

(12)
Consists of the shares held of record by Frazier as disclosed in footnote (4) above. Mr. Jordan is a managing member of Frazier Tech Management and may be deemed to share voting and dispositive power of the shares held by Frazier.

(13)
Consists of: (i) 48,079 shares held of record by Mr. Paisley; and (ii) options to purchase 30,144 shares exercisable within 60 days of March 1, 2014.

(14)
Consists of the shares held of record by vSpring III D, vSpring III, vSpring Partners and vSpring SBIC as disclosed in footnote (3) above. Mr. Petty is a managing member of vSpring Management III D, the sole general partner of vSpring III D, and may be deemed to share voting and investment power over the shares held by vSpring III D. Mr. Petty is a managing member of vSpring Management III, the sole general partner of vSpring III and vSpring Partners, and may be deemed to share voting and investment power over the shares held by vSpring III and vSpring Partners. Mr. Petty is a managing member of vSpring SBIC Management, the sole general partner of vSpring SBIC, and may be deemed to share voting and investment power over the shares held by vSpring SBIC.

22


Table of Contents

(15)
Consists of the shares held of record by Foundation VI Principals and Foundation VI as disclosed in footnote (1) above. Mr. Vassallo is a managing member of FC6M, the sole general partner of Foundation VI and Foundation VI Principals, and may be deemed to have shared voting and investment power over the shares held by Foundation VI and Foundation VI Principals. Mr. Vassallo disclaims beneficial ownership of the securities held by Foundation VI and Foundation VI Principals, except to the extent of his pecuniary interest therein.

(16)
Consists of: (i) 273,076 shares held of record by Mr. West; and (ii) options to purchase 413,619 shares exercisable within 60 days of March 1, 2014. Mr. West resigned as our Chief Strategy Officer on December 31, 2013.

(17)
Consists of: (i) 7,195,030 shares held of record by our current executive officers and directors; and (ii) options to purchase 1,610,634 shares exercisable within 60 days of March 1, 2014.


Section 16(a) Beneficial Ownership Reporting Compliance

        Section 16(a) of the Exchange Act requires our directors and executive officers and persons who own more than 10% of our common stock, to file with the SEC initial reports of beneficial ownership and reports of changes in beneficial ownership. Officers, directors and greater than 10% stockholders are required by SEC regulations to furnish us with copies of all such reports.

        To our knowledge, based solely on a review of the copies of such reports furnished to us and written representations that no other reports were required, we believe that for 2013, all required reports were filed on a timely basis under Section 16(a).


Equity Compensation Plan Information

        The following table sets forth information as of December 31, 2013 regarding shares of common stock that may be issued under the our equity compensation plans, consisting of our 2013 Stock Option and Incentive Plan and our 2003 Equity Incentive Plan. We do not have any non-stockholder approved equity compensation plans.

Plan Category
  Number of Shares of
Common Stock to be
Issued Upon Exercise
of Outstanding
Options, Warrants and
Rights (a) (#)
  Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights (b) ($)
  Number of Shares of
Common Stock
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected in
Column (a)) (c)
 

Equity compensation plans approved by stockholders

    4,916,929   $ 6.33     2,422,071  

23


Table of Contents


EXECUTIVE COMPENSATION

        Our named executive officers in 2013 were:

        In December 2013, Mr. West's employment with us ended and he resigned from our board of directors. On December 21, 2013, Mr. West entered into a separation agreement with us (the "Separation Agreement") in connection with his resignation, the material terms of which are described below under the heading "Employment Arrangements with Our Named Executive Officers—Separation Agreement with Mr. West."


Summary Compensation Table

        The following table provides information regarding the compensation of our named executive officers as required by Item 402(m)(2) of Regulation S-K during our fiscal year ended December 31, 2013.

Name and Principal Position
  Year   Salary
($)
  Option
Awards(1)($)
  Non-Equity
Incentive Plan
Compensation(2)($)
  All Other
Compensation
($)
  Total
($)
 
Martin Plaehn     2013     360,000     1,025,328     46,625         1,431,953  

President, CEO

    2012     360,000         25,571         385,571  

and Chairman

                                     

Susan Cashen

 

 

2013

 

 

217,500

 

 

154,971

 

 

28,175

 

 

697

(3)

 

401,343

 

Senior Vice President,

                                     

Marketing

                                     

Greg Bishop

 

 

2013

 

 

215,000

 

 

154,971

 

 

27,850

 

 

3,327

(3)

 

401,148

 

General Counsel and
Chief Compliance
Officer

                                     

William B. West

 

 

2013

 

 

300,000

 

 

93,271

(5)

 

38,850

 

 

318,792

(6)

 

750,912

 

Former Chief Strategy
Officer and Former
Chairman of the Board(4)

                                     

(1)
Amounts shown in this column represent the aggregate grant date fair value of the option award calculated in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation—Stock Compensation, as amended ("ASC 718"), without regard to estimated forfeitures. The assumptions used in calculating the grant date fair value of the stock options reported in the Option Awards column are set forth in Note 8 in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2013. Note that the amounts reported in this column reflect the accounting cost for these stock options, and do not correspond to the actual economic value that may be received by the named executive officers from the options.

(2)
Amount represents a cash bonus earned in 2013 and paid in 2014, and earned in 2012 and paid in 2013, as applicable, based on the achievement of company performance objectives and other

24


Table of Contents

    criteria deemed important by our Board. Our 2012 and 2013 company performance objectives were related to the attainment of revenue, gross margin and net income targets.

(3)
Represents the value of beta equipment provided to our named executive officers in 2013.

(4)
Mr. West resigned as Chief Strategy Officer and a member of the Board effective December 31, 2013.

(5)
In December 2013, we entered into the Separation Agreement with Mr. West in connection with his resignation. Pursuant to the Separation Agreement, the Company accelerated the vesting of 24,039 shares of common stock underlying a stock option granted to Mr. West on August 21, 2011. This number represents the accelerated accounting expense related to the acceleration of such award.

(6)
This amount includes $626 in beta equipment provided to Mr. West during 2013 and the following payments and benefits to which Mr. West is entitled under the terms of the Separation Agreement(i)$300,000 in base salary continuation for 12 months following termination of his employment, (ii) $17,051for reimbursement for insurance and COBRA premium payments for a period of 12 months following the date of Mr. West's termination of employment and (iii) $1,114 attributable to perquisites provided by us to Mr. West following the termination of his employment.

25


Table of Contents


Outstanding Equity Awards at Fiscal Year-End

        The following table presents certain information concerning equity awards held by our named executive officers as of December 31, 2013.

 
  Option Awards  
Name
  Securities
Underlying
Unexercised
Options (#)
Exercisable
  Securities
Underlying
Unexercised
Options (#)
Unexercisable
  Equity Incentive Plan
Awards: Securities
Underlying
Unexercised Unearned
Options (#)
  Option
Exercise Price
($)
  Option
Grant Date
  Option
Expiration
Date
 

Martin Plaehn

    339,896     264,364       (1)   6.14     9/29/2011     9/29/2021  

    48,976           58,747 (2)   6.14     9/29/2011     9/29/2021  

          96,153       (3)   11.28     6/11/2013     6/11/2023  

Greg Bishop

   
43,269
   
   
(4)
 
4.89
   
5/22/2008
   
5/22/2018
 

    1,923           (4)   4.89     12/19/2008     12/19/2018  

    4,807           (4)   4.89     1/15/2010     1/15/2020  

    10,817     3,606       (4)   6.14     5/26/2011     5/26/2021  

    3,846     3,846       (4)   6.34     12/29/2011     12/29/2021  

    3,605     10,818       (4)   9.93     12/26/2012     12/26/2022  

        15,384       (4)   11.28     6/11/2013     6/11/2023  

Susan Cashen

   
45,192
   
   
(4)
 
4.89
   
9/1/2009
   
9/1/2019
 

    1,923           (4)   4.89     1/15/2010     1/15/2020  

    17,227     2,003       (4)   7.49     7/9/2010     7/9/2020  

    8,652     2,885       (4)   6.14     5/26/2011     5/26/2021  

    3,846     3,846       (4)   6.34     12/29/2011     12/29/2021  

    2,403     7,211       (4)   9.93     12/26/2012     12/26/2022  

        15,384       (4)   11.28     6/11/2013     6/11/2023  

William West

   
103,706
         
(5)
 
1.98
   
3/24/2006
   
12/31/2014
 

    59,754             (5)   3.59     12/11/2007     12/31/2014  

    28,845             (5)   4.89     3/19/2009     12/31/2014  

    141,186             (5)   4.89     1/15/2010     12/31/2014  

    80,128             (5)   6.14     8/22/2011     12/31/2014  

(1)
The shares underlying the option vest as follows: 25% of the shares underlying the option vested on September 29, 2012 and the remaining 75% of the shares vest in equal monthly installments over the following three years. If Mr. Plaehn's employment is terminated by us without Cause (as defined in his offer letter) or by Mr. Plaehn for Good Reason (as defined in his offer letter) within 90 days prior to or 12 months after a Change of Control (as defined in his offer letter), 100% of the unvested shares underlying this option will immediately vest and become exercisable.

(2)
The shares underlying this option vest as follows: provided that certain milestones agreed upon by Mr. Plaehn and our Board are achieved, then 25% of the shares underlying the option vest on September 29, 2012 and the remaining 75% of the shares vest quarterly over the following three years. If Mr. Plaehn's employment is terminated by us without Cause or by Mr. Plaehn for Good Reason within 90 days prior to or 12 months after a Change of Control, the greater of: (1) 50% of the unvested shares underlying this option; and (2) 25% of the total number of shares of underlying this option shall immediately vest and become exercisable.

(3)
The shares underlying this option do not begin vesting until September 30, 2015, and vest as follows: 25% of the shares underlying the option vest on September 29, 2016 and the remaining 75% of the shares vest in equal monthly installments over the following three years, subject to

26


Table of Contents

    Mr. Plaehn's continued service to us through each vesting date. If Mr. Plaehn's employment is terminated by us without Cause or by Mr. Plaehn for Good Reason within 90 days prior to or 12 months after a Change of Control, 100% of the unvested shares underlying this option will immediately vest and become exercisable.

(4)
The shares underlying these options vest as follows: 25% of the shares underlying the option vest on the one-year anniversary of the hire date or grant date, as applicable, and the remaining 75% of the shares vest in equal monthly installments over the following three years.

(5)
The shares underlying these options vest as follows: 25% of the shares underlying the option vest on the one-year anniversary of the hire date or grant date, as applicable, and the remaining 75% of the shares vest in equal monthly installments over the following three years. In December 2013, we entered into the Separation Agreement with Mr. West in connection with his resignation. Pursuant to the Separation Agreement, the Company accelerated the vesting of 24,039 shares of common stock underlying a stock option granted to Mr. West on August 21, 2011. Pursuant to the Separation Agreement, Mr. West has until December 31, 2014 to exercise his stock options.


Benefits

        We provide the following benefits to our named executive officers, generally on the same basis provided to all of our employees:

    Medical, dental and vision insurance;

    401(k) plan;

    Employee assistance program;

    Disability, life insurance, accidental death and dismemberment insurance; and

    Health and dependent care flexible spending accounts.

        We also allow our vice presidents and officers, including our named executive officers, to receive our beta equipment at no cost up to certain annual limits.


Employment Arrangements with Our Named Executive Officers

        We have entered into an offer letter with each of Messrs. Plaehn and Bishop and Ms. Cashen and an employment agreement with Mr. West in connection with his or her employment with us. These offer letters and the employment agreement provide for "at will" employment. Pursuant to his offer letter, Mr. Plaehnis, and pursuant to his employment agreement Mr. West was, eligible to receive certain payments and benefits in the event in the event of a termination of his employment by us without Cause (as defined in the offer letter or employment agreement, as applicable) or in the event he terminates his employment with us for Good Reason (as defined in the offer letter or employment agreements, as applicable). In December 2013, in connection with his resignation, we entered into the Separation Agreement with Mr. West, which superseded the terms of his employment agreement.

    Offer Letter with Mr. Plaehn

        In the event that Mr. Plaehn's employment is terminated by our Company without Cause or by him for Good Reason, he will be entitled to receive (1) continued payment of his base salary for six months (provided that if such termination occurs within 90 days prior to or 12 months after a Change of Control, he will be entitled to receive such continued payment for 12 months) following termination, (2) continued Company-paid medical, dental and vision coverage for him and his dependents for 12 months following termination, and (3) earned but unpaid salary, bonuses and unreimbursed business expenses. In addition, if such termination occurs within 90 days prior to or within 12 months after a

27


Table of Contents

Change of Control, Mr. Plaehn is entitled to accelerated vesting of 100% of the unvested shares underlying an option to purchase shares of our common stock granted to him pursuant to the terms of his offer letter, as well as accelerated vesting of the greater of: (1) 50% of the then unvested portion of the an additional option to purchase shares of our common stock subject to both time and performance-based vesting granted to him pursuant to the terms of his offer letter; and (2) 25% of the total number of shares of common stock subject to such stock option.

        In addition, in the event Mr. Plaehn's employment with us is terminated by us without Cause or by Mr. Plaehn for Good Reason within 90 days prior to or within 12 months after a Change of Control, then 100% of the then unvested shares subject to the option granted to Mr. Plaehn on June 11, 2013 will vest and become exercisable.

    Separation Agreement with Mr. West

        On December 21, 2013, we entered into the Separation Agreement with Mr. West that provides for the following payments and benefits, in accordance with the terms of the employment agreement we entered into with Mr. West: (1) continued payment of his base salary for 12 months following termination; (2) reimbursement for payments under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") for a period of 12 months following termination, provided that Mr. West exercises his right under COBRA to continue participation in our group medical, dental and vision insurance plan and timely makes all proper elections with respect to the same; (3) accelerated vesting of the portion of the unvested shares of common stock underlying the option granted to Mr. West on August 21, 2011 under the Company's 2003 Equity Incentive Plan that would have otherwise vested over the 12-month period immediately following his termination; and (4) an extension of the post-termination exercise period for all of Mr. West's outstanding options to 12 months following the date of termination. Pursuant to the Separation Agreement, Mr. West also received a lump-sum bonus payment for fiscal year 2013 payable on the date that bonus awards were paid to our executive officers under our bonus plan, in an amount determined by us in our discretion after considering our bonus plan and the achievement of applicable milestones. In addition, the Separation Agreement provides for the following benefits not contemplated under Mr. West's employment agreement (1) participation in our dealer training class in 2014 and participation, on an ongoing basis, in any online and other training provided by us for the purpose of programming and configuring his own home, (2) ongoing personal access to Composer-Pro for the sole purpose of programming and configuring his own home, provided that we continue to provide access to Composer Pro to dealers and/or other end-customers and that Mr. West complies with the applicable license agreement and terms of use, (3) ongoing access to our online dealer forums for the sole purpose of supporting his use of Company products in his own home, provided that we provide access to such forums to dealers and/or other end-customers and (4) for the two-year period immediately following his termination, continued participation in our special accommodation program for discounted purchase of product for his own personal use at his residence. In exchange for these payments and benefits, Mr. West provided us with a fully effective release of all claims against us and our affiliates and agreed to continue to comply with, among other things, the restrictions related to non-solicitation and non-competition set forth in his employment agreement.

        Except as described above, there are currently no severance agreements or arrangements in place for our named executive officers.


Compensation Committee Interlocks and Insider Participation

        During 2013, Messrs. David C. Habiger, Len Jordan and Steven Vassallo served as members of our compensation committee. No member of the compensation committee was an employee or officer of Control4 during 2013, is a former officer of Control4, or had any other relationship with us requiring disclosure herein.

28


Table of Contents

        During the last fiscal year, none of our executive officers served as: (1) a member of the compensation committee (or other committee of the board of directors performing equivalent functions or, in the absence of any such committee, the entire board of directors) of another entity, one of whose executive officers served on our compensation committee; (2) a director of another entity, one of whose executive officers served on our compensation committee; or (3) a member of the compensation committee (or other committee of the board of directors performing equivalent functions or, in the absence of any such committee, the entire board of directors) of another entity, one of whose executive officers served on our board of directors.


Report of the Compensation Committee of the Board of Directors

        The information contained in this compensation committee report shall not be deemed to be (1) "soliciting material," (2) "filed" with the SEC, (3) subject to Regulations 14A or 14C of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or (4) subject to the liabilities of Section 18 of the Exchange Act. No portion of this compensation committee report shall be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, through any general statement incorporating by reference in its entirety the Proxy Statement in which this report appears, except to the extent that Control4 Corporation (the "Company") specifically incorporates this report or a portion of it by reference. In addition, this report shall not be deemed filed under either the Securities Act or the Exchange Act.

        The compensation committee has reviewed and discussed the foregoing executive compensation section with management. Based on the review and discussions, the compensation committee recommended to the board of directors of the Company that such executive compensation section be included in this Proxy Statement.

29


Table of Contents


RELATED PARTY TRANSACTIONS

Certain Relationships and Transactions

        In 2013, there was not, and there is not currently proposed, any transaction or series of similar transactions to which we were or will be a party for which the amount involved exceeds or will exceed $120,000 and in which any director, executive officer, holder of 5% or more of any class of our capital stock or any member of their immediate family had or will have a direct or indirect material interest except for the Separation Agreement with Mr. West. For more information regarding the Separation Agreement see "Employment Arrangements with Our Named Executive Officers—Separation Agreement with Mr. West."


Procedures for Approval of Related Party Transactions

        Our board of directors reviews and approves transactions with directors, officers and holders of 5% or more of our capital stock and their affiliates, each of whom we refer to as a related party. We have adopted a written related party transaction approval policy that governs the review of related party transactions. Pursuant to this policy, our audit committee shall review the material facts of all related party transactions. The audit committee shall take into account, among other factors that it deems appropriate, whether the related party transaction is on terms no less favorable to us than terms generally available in a transaction with an unrelated third party under the same or similar circumstances and the extent of the related party's interest in the related party transaction. Further, when stockholders are entitled to vote on a transaction with a related party, the material facts of the related party's relationship or interest in the transaction are disclosed to the stockholders, who must approve the transaction in good faith.


TRANSACTION OF OTHER BUSINESS

        The board of directors knows of no other matters that will be presented for consideration at the Annual Meeting. If any other matters are properly brought before the Annual Meeting, the persons appointed in the accompanying proxy intend to vote the shares represented thereby in accordance with their best judgment on such matters, under applicable laws.


ADDITIONAL INFORMATION

Procedures for Submitting Stockholder Proposals

        Requirements for Stockholder Proposals to be Brought Before the Annual Meeting.     Our bylaws provide that, for nominations of persons for election to our board of directors or other proposals to be considered at an annual meeting of stockholders, a stockholder must give written notice to our Secretary at Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah 84020, not later than the close of business 90 days, nor earlier than the close of business 120 days, prior to the first anniversary of the date of the preceding year's annual meeting. However, the bylaws also provide that in the event the date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date, notice must be delivered not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made. Any nomination must include all information relating to the nominee that is required to be disclosed in solicitations of proxies for election of directors in election contests or is otherwise required under Regulation 14A of the Exchange Act, the person's written consent to be named in the Proxy Statement and to serve as a director if elected and such information as we might reasonably require to determine the eligibility of the person to serve as a director. As to other business, the notice must include a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting, and any material interest of such stockholder (and the beneficial owner) in the proposal. The proposal must be a proper subject for

30


Table of Contents

stockholder action. In addition, to make a nomination or proposal, the stockholder must be of record at the time the notice is made and must provide certain information regarding itself (and the beneficial owner), including the name and address, as they appear on our books, of the stockholder proposing such business, the number of shares of our capital stock which are, directly or indirectly, owned beneficially or of record by the stockholder proposing such business or its affiliates or associates (as defined in Rule 12b-2 promulgated under the Exchange Act) and certain additional information.

        The advance notice requirements for the Annual Meeting, which is the first annual meeting following the initial public offering of our common stock, are as follows: a stockholder's notice shall be timely if delivered to our Secretary at the address set forth above not later than the close of business on the later of the 90th day prior to the scheduled date of the Annual Meeting or the 10th day following the day on which public announcement of the date of the Annual Meeting is first made or sent by us.

        Requirements for Stockholder Proposals to be Considered for Inclusion in the Company's Proxy Materials.     In addition to the requirements stated above, any stockholder who wishes to submit a proposal for inclusion in our proxy materials must comply with Rule 14a-8 promulgated under the Exchange Act. For such proposals to be included in our proxy materials relating to our 2015 annual meeting of stockholders, all applicable requirements of Rule 14a-8 must be satisfied and we must receive such proposals no later than December 14, 2014. Such proposals must be delivered to our Secretary, c/o Control4 Corporation, 11734 S. Election Road, Salt Lake City, Utah

31


ANNUAL MEETING OF STOCKHOLDERS OF CONTROL4 CORPORATION May 14, 2014 Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be held May 14, 2014 The proxy statement and our Annual Report on Form 10-K are available at http://www.astproxyportal.com/ast/18463/ Please sign, date and mail your proxy card in the envelope provided as soon as possible. Signature of Stockholder Date: Signature of Stockholder Date: Note: Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person. To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. 1. To elect the following Class I Director Nominees O Len Jordan O Steven Vassallo 2. To ratify the appointment of Ernst & Young LLP as Control4's independent registered public accounting firm for the fiscal year ending December 31, 2014 NOTE: The proxies are authorized to vote on such other business as may properly come before the meeting or any adjournment thereof. FOR AGAINST ABSTAIN FOR ALL NOMINEES WITHHOLD AUTHORITY FOR ALL NOMINEES FOR ALL EXCEPT (See instructions below) INSTRUCTIONS: To withhold authority to vote for any individual nominee(s), mark “FOR ALL EXCEPT” and fill in the circle next to each nominee you wish to withhold, as shown here: NOMINEES: THE BOARD OF DIRECTORS RECOMMENDS YOU VOTE "FOR" ALL THE NOMINEES LISTED IN PROPOSAL 1 AND "FOR" PROPOSAL 2. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE x Please detach along perforated line and mail in the envelope provided. --------------- ---------------- 20230000000000001000 9 051414 MARK “X” HERE IF YOU PLAN TO ATTEND THE MEETING. GO GREEN e-Consent makes it easy to go paperless. With e-Consent, you can quickly access your proxy material, statements and other eligible documents online, while reducing costs, clutter and paper waste. Enroll today via www.amstock.com to enjoy online access.

 

 

0 --------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---------------- 14475 CONTROL4 CORPORATION THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF CONTROL4 CORPORATION The undersigned hereby appoints Martin Plaehn, Dan Strong and Greg Bishop, as proxies and attorneys-in-fact of the undersigned, each with the power to act without the other and with the power of substitution, and hereby authorizes them to represent and vote all shares of common stock of Control4 Corporation (the "Company") standing in the name of the undersigned on April 15, 2014, with all powers which the undersigned would possess if present at the 2014 Annual Meeting of Stockholders of the Company to be held on May 14, 2014 or at any adjournment or postponement thereof. Receipt of the Notice of the 2014 Annual Meeting of Stockholders and Proxy Statement and the 2013 Annual Report is hereby acknowledged. (Continued and to be signed on the reverse side.)

 

 

Signature of Stockholder Date: Signature of Stockholder Date: Note: Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person. To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. 1. To elect the following Class I Director Nominees O Len Jordan O Steven Vassallo 2. To ratify the appointment of Ernst & Young LLP as Control4's independent registered public accounting firm for the fiscal year ending December 31, 2014 NOTE: The proxies are authorized to vote on such other business as may properly come before the meeting or any adjournment thereof. FOR AGAINST ABSTAIN FOR ALL NOMINEES WITHHOLD AUTHORITY FOR ALL NOMINEES FOR ALL EXCEPT (See instructions below) INSTRUCTIONS: To withhold authority to vote for any individual nominee(s), mark “FOR ALL EXCEPT” and fill in the circle next to each nominee you wish to withhold, as shown here: JOHN SMITH 1234 MAIN STREET APT. 203 NEW YORK, NY 10038 NOMINEES: ANNUAL MEETING OF STOCKHOLDERS OF CONTROL4 CORPORATION May 14, 2014 INTERNET - Access “www.voteproxy.com” and follow the on-screen instructions or scan the QR code with your smartphone. Have your proxy card available when you access the web page. TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) in the United States or 1-718-921-8500 from foreign countries from any touch-tone telephone and follow the instructions. Have your proxy card available when you call. Vote online/phone until 11:59 PM EST the day before the meeting. MAIL - Sign, date and mail your proxy card in the envelope provided as soon as possible. IN PERSON - You may vote your shares in person by attending the Annual Meeting. GO GREEN - e-Consent makes it easy to go paperless. With e-Consent, you can quickly access your proxy material, statements and other eligible documents online, while reducing costs, clutter and paper waste. Enroll today via www.amstock.com to enjoy online access. PROXY VOTING INSTRUCTIONS Please detach along perforated line and mail in the envelope provided IF you are not voting via telephone or the Internet. THE BOARD OF DIRECTORS RECOMMENDS YOU VOTE "FOR" ALL THE NOMINEES LISTED IN PROPOSAL 1 AND "FOR" PROPOSAL 2. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE x --------------- ---------------- 20230000000000001000 9 051414 COMPANY NUMBER ACCOUNT NUMBER Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be held May 14, 2014 The proxy statement and our Annual Report on Form 10-K are available at http://www.astproxyportal.com/ast/18463/ MARK “X” HERE IF YOU PLAN TO ATTEND THE MEETING.