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

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 14
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have a written employment agreement with the Company. As of January 1, 2025, his annual salary is $271,000 per year, and he is
eligible to receive a bonus as determined by either the Board of Directors or the Compensation Committee. See “2025 Management
Incentive Bonus Plan” and “2024 Management Incentive Bonus Plan” information below.

Outstanding Equity Awards as of December 31, 2024

The following table sets forth certain
information concerning outstanding option equity awards outstanding to the Named Executive Officer at December 31, 2024. There
were no outstanding share awards and therefore, these columns are omitted from the table.

| Outstanding Equity Awards at Fiscal Year-End |     |                     |     |                        |                |            |
| Option Awards                                |     |                     |     |                        |                |            |
| Name                                         |     |           Number of 
          securities 
          underlying 
 unexercised options 
     (#) exercisable |     |   Number of securities 
 underlying unexercised 
            options (#) 
          unexercisable |         Option 
 Exercise Price 
            ($) | Option     
 Expiration 
 Date       |
| Mr. Klenk                                    |     |              50,000 |     |                   None |           3.41 | 2/8/2026   |
| Mr. Klenk                                    |     |              10,000 |     |                 15,000 |           4.25 | 8/27/2033  |

| Stock Awards |     |                      |     |                        |
| Name         |     |     Number of shares 
    or units of stock 
 that have not vested |     | Market value of shares 
               or units 
          of stock that 
        have not vested 
                    ($) |
| Mr. Klenk    |     |               28,000 |     |               $144,704 |

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2024 Management Incentive Bonus Plan

On January 25, 2024,
the Compensation Committee approved the 2024 Management Incentive Plan (the “2024 Plan”) for the Company’s President,
Chief Executive Officer, and Chief Financial Officer David L. Klenk. The 2024 Plan had both annual financial performance and strategic
goals. The financial performance goals were primarily based on the achievement of specified revenue levels, with additional amounts
available for exceeding certain levels. The