Company: ELSE
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0000897101-25-000161
Chunk: 4

Company: ELECTRO SENSORS INC
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 4
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 are not entitled to cumulative voting
rights.

For the election of
directors, each shareholder will be entitled to vote for five nominees and the five nominees with the greatest number of votes
will be elected. With respect to the proposal to set the number of directors at five, ratification of our independent registered
public accounting firm for the fiscal year ending December 31, 2025, the advisory Say-on-Pay vote, and any other matter that properly
comes before the meeting, the affirmative vote of the holders of a majority of the shares of Common Stock represented in person
or by proxy and entitled to vote on the proposal will be required for approval. With respect to the advisory vote on the frequency
of future Say-on-Pay votes, the shareholders will be deemed to have selected the frequency option that receives the most votes.
A properly executed proxy marked “ABSTAIN” with respect to any proposal will not be voted, although it will be counted
for purposes of determining whether there is a quorum. Accordingly, an abstention will have the effect of a negative vote with
respect to all proposals other than the advisory vote on the frequency of future Say-on-Pay votes, on which an abstention will
have no effect.

A majority of the shares
of Common Stock entitled to vote at the Annual Meeting, present in person or by proxy, constitutes a quorum that is required for
the transaction of business at the Annual Meeting. Proxies relating to “street name” shares that are voted by brokers
on some matters, but not on other matters as to which authority to vote is withheld from the broker (“broker non-votes”)
absent voting instructions from the beneficial owner, will be treated as shares present for purposes of determining the presence
or absence of a quorum but will not be deemed to be represented at the meeting for purposes of determining the approval of any
matter submitted to the shareholders for which voting authority is withheld. Brokers are not permitted to cast votes on non-routine
matters, or nondiscretionary matters, which include election of directors, approval of “say-on-pay” or “say-on-pay
frequency” resolutions, therefore broker non-votes will have no impact on Proposals 1, 4, and 5. Conversely, Proposals 2
and 3 are considered routine matters and therefore are eligible for broker discretionary voting. The Inspector of Election appointed
by the Board will determine the shares represented at the meeting and the validity of proxies and ballots and