Company: ELSE
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0000897101-25-000161
Chunk: 20

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 20
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 these pre-approved tax services may not exceed $15,000 without  
 additional explicit approval by the Audit Committee.                                                                               |

The term of any pre-approval
is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different term. The Audit Committee
retains the right to periodically revise the above list of pre-approved services.

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ADVISORY VOTE ON EXECUTIVE COMPENSATION

Proposal #4</div>

The Dodd-Frank Wall
Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and Section 14A of the Exchange Act require that we
provide our shareholders the opportunity to vote on a nonbinding, advisory resolution regarding the compensation of our Named Executive
Officers as disclosed in this Proxy Statement in accordance with the compensation disclosure rules of the SEC (commonly referred
to as “Say-on-Pay”).

The Board of Directors
believes that our executive compensation rewards performance, supports our business strategies, and discourages excessive risk
taking. We believe that our executive compensation package is adequate, competitive with the market, and consistent with our objectives
and goals.

The vote on this resolution
is not intended to address any specific element of compensation. Instead, the vote relates to the overall compensation of our Named
Executive Officers, as described in this Proxy Statement in accordance with the compensation disclosure rules of the SEC.

The vote on this proposal
is an advisory vote and is not binding on the Company. Although the vote is non-binding, the Board of Directors and the Compensation
Committee intend to carefully consider the results of the voting on this proposal when making future decisions regarding executive
compensation. To the extent there is any significant vote against the compensation of our Named Executive Officers in this Proposal
#4, the Compensation Committee will evaluate what actions may be necessary to address our shareholders’ concerns.

Vote Required for Approval

The affirmative vote
of the holders of a majority of the shares of Common Stock represented at the Annual Meeting in person or by proxy and entitled
to vote is required for approval of this proposal.

The Board of Directors recommends that shareholders vote FOR the non-binding resolution regarding the compensation of our Named Executive Officers, as disclosed in this Proxy Statement.

<div align='center'>17

ADVISORY VOTE ON THE FREQUENCY OF HOLDING THE SAY-ON-PAY VOTE

Proposal #5</div>

In addition to the
Say-on-Pay vote set forth in Proposal #4, the Dodd-F