Company: ELSE
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0000897101-25-000161
Chunk: 6

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 6
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, and Zipoy are independent directors as defined by the listing standards
of the Nasdaq Stock Market, because none of them are believed to have any relationships that, in the opinion of the Board of Directors,
would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. If Messrs. Gabbard,
Marino, Peterson, and Zipoy are all elected at the Annual Meeting, they will constitute a majority of the Board of Directors. Mr.
Klenk is precluded from being considered independent by Nasdaq rules since he currently serves as an executive officer of the Company.

The Board has determined
that all members of the Company’s Audit Committee, Compensation Committee and Nominating Committee are independent under
listing standards of the Nasdaq Stock Market.

Code of Ethics and Business Conduct

The Company has adopted
the Electro-Sensors Code of Ethics and Business Conduct (the “Code of Conduct”), which applies to all of our directors,
officers and employees. A copy of the Code of Conduct may be obtained upon written request to the Chief Executive Officer. If we
make any substantive amendments to the Code of Conduct or grant any waiver, including any implicit waiver from a provision of the
Code of Conduct to our directors or executive officers, we will disclose the nature of the amendments or waiver on our website.

Director Attendance at Annual Meeting

We expect all directors
to attend the Annual Meeting of Shareholders. The 2024 Annual Meeting was held virtually and all five of the directors attended
the Meeting.

Communications with the Board

Shareholders may communicate
directly with the Board. All communications should be directed to the Chairman of our Audit Committee at the address below and
should prominently indicate on the outside of the envelope that the communication is intended for the Board or for non-management
directors. If no director is specified, the communication will be forwarded to the entire Board. Shareholder communications to
the Board should be sent to:

<div align='center'>Board of Directors

Attention: Chairman, Audit Committee

Electro-Sensors, Inc.

6111 Blue Circle Drive

Minnetonka, Minnesota 55343-9108</div>

Committees and Meetings of the Board
of Directors

Information about the
Board and its Committees are set forth below.

Board Meetings

The Board met five
times during 2024. Each Board member attended all of the meetings of the Board and committees on which he served.

Director Compensation

The compensation of
directors who are not Company employees is