Company: ELSE
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0000897101-25-000161
Chunk: 8

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 8
---
 year ended December 31, 2024.

Nominating Committee

Messrs. Marino, Peterson,
and Zipoy (Chair) currently serve as members of the Nominating Committee. The Nominating Committee met once during 2024. The Nominating
Committee is responsible for evaluating and nominating or recommending candidates for the Company’s Board of Directors. A
copy of the Nominating Committee Charter, which has been adopted by the Company’s Board, is posted on our corporate website
under “Investor Information - Corporate Governance.”

Business Development Committee

Messrs. Marino, Gabbard,
and Klenk serve as members of the Business Development Committee. The Business Development Committee meets regularly during the
year and reports to the Board. The Business Development Committee is authorized to explore and pursue business development and
other strategic alternatives for Electro-Sensors.

The members of the committee were selected
for their background and expertise in strategy formulation and execution, as well as their deep understanding of the Electro-Sensors
business, business development opportunities, and potential strategic alternatives. The members of the committee have been active
throughout the year in addition to their other service to Electro-Sensors, its Board and Board committees.

<div align='center'>4</div>

Nominating Policy

The Nominating Committee
will consider candidates for nomination as a director recommended by shareholders. The Nominating Committee believes that director
candidates should have certain minimum qualifications.

In evaluating director
nominees who meet the Company’s minimum qualifications, the Nominating Committee and any search firm, it may retain, considers
the following factors and qualifications, among others:

| ● | the appropriate size of the Company’s Board of Directors; |

| ● | the needs of the Board for the particular talents and experience of its directors; |

| ● | the knowledge, skills and experience of nominees, including experience in technology, business,                                
 finance, administration or public service, in light of prevailing business conditions and the knowledge, skills and experience 
 already possessed by other members of the Board;                                                                               |

| ● | familiarity with domestic and international business matters; |

| ● | legal and regulatory requirements; |

| ● | experience with accounting rules and practices; |

| ● | understanding of basic financial statements; |

| ● | appreciation of the relationship of the Company’s business to the changing needs of society; 
 and                                                                                          |

| ● | the desire to balance the considerable benefit of continuity with the periodic injection of the 
 fresh perspective provided by