Company: ELSE
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0000897101-25-000161
Chunk: 9

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 9
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 new members.                                                      |

The Nominating Committee
will consider the attributes of the candidates and the needs of the Board and will review all candidates in the same manner. The
Nominating Committee seeks to nominate candidates with a diverse range of knowledge, experience, skills, expertise, and other qualities
that will contribute to the overall effectiveness of the Board.

A shareholder who wishes
to recommend one or more directors must provide a written recommendation to the Company at the address below by November 20, 2025. Notice of a recommendation must include the name and address of the shareholder and number of shares the shareholder
owns. The shareholder should include the nominee’s name, age, business address, residence address, current principal occupation,
five-year employment history with employer names and a description of the employer’s business, the number of shares beneficially
owned by the nominee, whether the nominee can read and understand basic financial statements, and other Board memberships, if any.

<div align='center'>Electro-Sensors, Inc.

Attn: Chair, Nominating
Committee

6111 Blue Circle Drive

Minnetonka, MN 55343-9108</div>

The recommendation
must be accompanied by a written consent of the nominee to stand for election at the Annual Meeting if nominated by the Nominating
Committee and to serve if elected by the shareholders. The Company may require any nominee to furnish additional information that
may be needed to determine the eligibility of the nominee and whether the nominee has the attributes the Board believes are important
in its composition.

<div align='center'>5</div>

Special Committee

Due to the focus on
the business development and strategic alternatives process being led by the special committee, the Nominating Committee believes
that retaining the current composition of the Board through the pendency of this process is in the best interests of Electro-Sensors
and its shareholders. The Nominating Committee believes that the current Board has a diversity of talent and experience to draw
upon, is able to staff the special committee and other committees of the Board and is able to engage in Board and committee service,
all while maintaining efficient function and communication among members. The Nominating Committee also believes that active recruitment
of new Board members during a strategic alternative process would be more difficult and be less likely to result in qualified and
interested candidates due to the unique challenges presented by an ongoing business development and strategic alternatives process.

<div align='center'>6

ELECTION OF DIRECTORS

Proposals #1 and