<SEC-DOCUMENT>0000897101-15-000352.txt : 20150318
<SEC-HEADER>0000897101-15-000352.hdr.sgml : 20150318
<ACCEPTANCE-DATETIME>20150318144232
ACCESSION NUMBER:		0000897101-15-000352
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20150422
FILED AS OF DATE:		20150318
DATE AS OF CHANGE:		20150318
EFFECTIVENESS DATE:		20150318

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ELECTRO SENSORS INC
		CENTRAL INDEX KEY:			0000351789
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823]
		IRS NUMBER:				410943459
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09587
		FILM NUMBER:		15709760

	BUSINESS ADDRESS:	
		STREET 1:		6111 BLUE CIRCLE DR
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343-9108
		BUSINESS PHONE:		9529300100

	MAIL ADDRESS:	
		STREET 1:		6111 BLUE CIRCLE DR
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>else151007_def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
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<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 14pt" face="'Times New Roman,serif'">SCHEDULE 14A - <BR>
INFORMATION REQUIRED IN PROXY STATEMENT</FONT></B></H1>
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<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Schedule 14A Information</FONT></B></H1>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="'Times New Roman,serif'"></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'">Proxy Statement Pursuant to Section 14(a) of the <BR>
Securities Exchange Act of 1934 <BR>
(Amendment No.____ ) </FONT></P>
<P style="MARGIN: 6pt 0in 0pt 13.7pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'">Filed by the registrant&nbsp;&nbsp;&nbsp;</FONT><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'MS Mincho'">&#9746;</FONT></P>
<P style="MARGIN: 6pt 0in 0pt 13.7pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'">Filed by a party other than the registrant&nbsp;&nbsp;&nbsp;</FONT><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'MS Mincho'">&#9744;</FONT></P>
<P style="MARGIN: 6pt 0in 0pt 13.7pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'">Check the appropriate box:</FONT></P>
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<P style="MARGIN: 6pt 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 6pt 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9744;</FONT></P>
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<P style="MARGIN: 6pt 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Preliminary Proxy Statement </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9744;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9746;</FONT></P>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="92%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Definitive Proxy Statement </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9744;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Definitive Additional Materials </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9744;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Soliciting Material Under Section 240.14a-12 </FONT></P>
</TD></TR></TABLE></DIV>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'"></FONT></B>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'">ELECTRO-SENSORS, INC.</FONT></B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'"> <BR>
(Name of Registrant as Specified in Its Charter)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'"></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'">N/A <BR>
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'">Payment of Filing Fee (Check the appropriate box):</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9746;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">No fee required </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9744;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(1) </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Title of each class of securities to which transaction applies: </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(2) </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Aggregate number of securities to which transactions applies: </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(3) </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(4) </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Proposed maximum aggregate value of transaction: </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(5) </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Total fee paid: </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9744;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Fee paid previously with preliminary materials. </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'MS Mincho'">&#9744;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. </FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 8pt 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 8pt 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
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<P style="MARGIN: 8pt 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(1) </FONT></P>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="88%">
<P style="MARGIN: 8pt 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Amount Previously Paid: </FONT></P>
</TD></TR>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(2) </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="88%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Form, Schedule or Registration Statement No.: </FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(3) </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="88%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Filing Party: </FONT></P>
</TD></TR>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">&nbsp; </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="4%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">(4) </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="88%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="'Times New Roman,serif'">Date Filed: </FONT></P>
</TD></TR></TABLE></DIV>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face="'Times New Roman,serif'"></FONT>&nbsp;</P>





<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><img src="a151007002_v1.jpg" ALT="(electro sensor logo)"></font></P>

<P ALIGN=CENTER><FONT SIZE=2><B>ELECTRO-SENSORS, INC.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6111 Blue Circle Drive&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minnetonka, Minnesota 55343 <BR>
(952) 930-0100</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P><B>&nbsp;</B></P>


 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS <BR>
To Be Held April 22, 2015</B></FONT></P>

<P><FONT SIZE=2>To the
Shareholders of Electro-Sensors, Inc.:</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice is hereby given that the Annual
Meeting of Shareholders of Electro-Sensors, Inc. will be held at the Sheraton
Minneapolis West Hotel, 12201 Ridgedale Drive, Minnetonka, Minnesota, on
Wednesday, April 22, 2015, at 2:00 pm, Central Time, for the following purposes:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>1.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>To set the
 number of directors at five;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>2.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>To elect
 five directors to serve until the next Annual Meeting of Shareholders;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>3.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>To ratify
 the selection of Boulay PLLP as independent registered public accounting firm
 for the Company for the fiscal year ending December 31, 2015; and</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>4.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>To take
 action upon any other business as may properly come before the meeting or any
 adjournment or postponement thereof.</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accompanying this Notice of Annual
Meeting is a Proxy Statement, Form of Proxy and the Company&#146;s Annual Report on
Form 10-K for the fiscal year ended December 31, 2014.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has fixed the
close of business on February 23, 2015 as the record date for the determination
of shareholders entitled to notice of and to vote at the Annual Meeting of
Shareholders. All shareholders of record are cordially invited to attend the
Annual Meeting in person. However, to ensure a quorum, the Board of Directors
requests that you promptly complete, sign, date and return the enclosed proxy
card, which is solicited by the Board of Directors, whether or not you plan to
attend the Annual Meeting. The proxy is revocable and will not be used if you
attend the Annual Meeting and vote in person or otherwise provide notice of
your revocation. If you have any questions regarding the completion of the
enclosed proxy card or would like directions to the Annual Meeting, please call
the Company at (952) 930-0100.</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>BY ORDER OF
 THE BOARD OF DIRECTORS,</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><img  src="a151007003_v1.jpg" ALT="-s- David L. Klenk"></font></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>David L.
 Klenk</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>President</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Minnetonka,
Minnesota <BR>
Dated: March 16, 2015</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><img src="a151007002_v1.jpg" ALT="(electro sensor logo)"></font></P>

<P ALIGN=CENTER><FONT SIZE=2><B>ELECTRO-SENSORS, INC.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6111 Blue Circle Drive&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minnetonka, Minnesota 55343&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(952) 930-0100</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P>&nbsp;</P>


 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><B>PROXY STATEMENT <BR>
FOR <BR>
ANNUAL MEETING OF SHAREHOLDERS <BR>
To Be Held April 22, 2015</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P>&nbsp;</P>


 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><B>GENERAL INFORMATION</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy
Statement is furnished by the Board of Directors (the &#147;Board of Directors&#148;) of
Electro-Sensors, Inc., a Minnesota corporation (the &#147;Company&#148;), to the
shareholders of the Company in connection with a solicitation of proxies to be
voted at the Annual Meeting of Shareholders (the &#147;Annual Meeting&#148;) to be held
at 2:00 p.m., Central Time, on Wednesday, April 22, 2015, at the Sheraton
Minneapolis West Hotel, 12201 Ridgedale Drive, Minnetonka, Minnesota, and at
any and all adjournments or postponements thereof. This Proxy Statement and the
accompanying materials are first being mailed to shareholders on or about March
18, 2015. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your
shares are registered in the name of a bank or brokerage firm, you may be
eligible to vote your shares electronically via the Internet or telephone. A
large number of banks and brokerage firms are participating in the Broadridge
Investor Communication Services online program. This program provides eligible
shareholders who receive a paper copy of the Annual Report and Proxy Statement
the opportunity to vote via the Internet or telephone. If your bank or
brokerage firm is participating in Broadridge&#146;s program, your voting form will
provide instructions. If your voting form does not refer to Internet or
telephone information, please complete and return the paper proxy card in the
postage paid envelope provided.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any proxy
delivered pursuant to this solicitation is revocable at the option of the
person giving the proxy at any time before it is exercised. A proxy may be
revoked, prior to its exercise, by executing and delivering a later-dated proxy
via the Internet, via telephone or by mail, by delivering written notice of the
revocation of the proxy to the Company&#146;s President prior to the Annual Meeting,
or by attending and voting at the Annual Meeting. Attendance at the Annual
Meeting, in and of itself, will not constitute a revocation of a proxy. The
shares represented by a proxy will be voted in accordance with the
shareholder&#146;s directions if the proxy is duly submitted and not validly revoked
prior to the Annual Meeting. If no directions are specified on a duly submitted
proxy, the shares will be voted, in accordance with the recommendations of the
Board of Directors, FOR approval of the number of directors to be set at five,
FOR the election of the directors nominated by the Board of Directors, FOR the
ratification of the Company&#146;s selection of independent registered public
accounting firm for the fiscal year ending December 31, 2015, and in accordance
with the discretion of the persons appointed as proxies on any other matters
properly brought before the Annual Meeting and any all adjournments or
postponements thereof.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expense
of preparing, printing, and mailing this Proxy Statement and the proxies
solicited hereby will be borne by the Company. The Company will request
brokerage firms, banks, nominees, custodians, and fiduciaries to forward proxy
materials to the beneficial owners of shares of Common Stock of the Company
(&#147;Common Stock&#147;) as of the record date, and will provide reimbursement for the
cost of forwarding the proxy materials in accordance with customary practice.
In addition to the use of the Internet and mail, proxies may be solicited by
officers, directors, and regular employees of the Company, without additional
remuneration, in person or by telephone or facsimile transmission. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Important Notice Regarding the Availability
of Proxy Materials for the Annual Meeting: <BR>
The Proxy Statement, Form of Proxy, and Annual Report on Form 10-K are
available at <BR>
http://www.idelivercommunications.com/proxy/else</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>1</font></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>OUTSTANDING SHARES &amp; VOTING RIGHTS</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
fixed the close of business on February 23, 2015 as the record date for
determining shareholders entitled to notice of and to vote at the Annual
Meeting. At February 23, 2015, the Company had outstanding 3,395,521 shares of
Common Stock, the only outstanding class of capital stock of the Company. Each
share of Common Stock outstanding on the record date entitles the holder
thereof to one vote on each matter to be voted upon by shareholders at the
Annual Meeting. Holders of Common Stock are not entitled to cumulative voting
rights. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, 2015, 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. A properly executed proxy marked
&#147;ABSTAIN&#148; 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.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A majority
of the shares of Common Stock entitled to vote at the Annual Meeting, present
in person or by proxy, constitutes a quorum, which is required for the
transaction of business at the Annual Meeting. Proxies relating to &#147;street
name&#148; 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 (&#147;broker
non-votes&#148;) 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. The Inspector of Election appointed by the Board
of Directors will determine the shares represented at the meeting and the
validity of proxies and ballots, and will count all votes and ballots. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>CORPORATE GOVERNANCE</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
business affairs of the Company are conducted under the direction of the Board
of Directors in accordance with the Minnesota Business Corporation Act and our
Articles of Incorporation and Bylaws. The Board of Directors currently has five
members: David L. Klenk, Jeffrey D. Peterson, Joseph A. Marino, Scott A.
Gabbard, and Michael C. Zipoy. Members of the Board of Directors are informed
of our business through discussions with management, by reviewing materials
provided to them and by participating in meetings of the Board of Directors and
its committees, among other activities. The corporate governance practices that
we follow are summarized below.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Board Leadership
Structure and Risk Management</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors believes that independent director Joseph A. Marino is best
suited to serve as Chairman of the Board due to his extensive familiarity with
the Company&#146;s business and industry as well as his proven track record of
leading dynamic and growing organizations. Additionally, the Board believes Mr.
Marino is most capable of effectively identifying strategic priorities and
leading the discussion and execution of strategy. The Board believes having an
independent director as chairman provides for good governance and effectively
balances the roles of internal and external directors. Mr. Marino and the
Company&#146;s other independent directors bring experience, oversight and expertise
from outside the company and industry, while Mr. David L. Klenk, as Chief
Executive Officer and Chief Financial Officer, brings company-specific
experience and expertise. The Board believes that Mr. Klenk&#146;s participation on
the board in his role of Chief Executive Officer promotes strategy development
and execution, and facilitates information flow between management and the
Board, which are essential to effective governance. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
of the key Board responsibilities is to hold management accountable for the
execution of strategy once it is developed. The Board believes that its
independent directors work together effectively to serve this oversight
function, with no individual director serving as a &#147;lead&#148; independent director.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors believes that oversight of the Company&#146;s risk management
efforts is another key responsibility that is shared by the entire Board. The
Board regularly reviews risk management information regarding the Company&#146;s
liquidity and operations. Board members receive regular financial statements,
which are discussed at quarterly meetings of the Board. In addition, Mr. Klenk
frequently has informal discussions with board members regarding key business
issues and risk management.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>2</font></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2><B>Independence</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board
of Directors has determined that Messrs. Marino, Gabbard, and Zipoy are
independent directors as defined by the
listing standards of the Nasdaq Stock Market, since 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. Marino, Gabbard,
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. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For several
years, Jeffrey Peterson was precluded from being considered independent by
Nasdaq Stock Market rules because his father served as an executive officer of
the Company until his death in January 2011. As a result of a purchase of the
Company&#146;s stock in November 2013, Nancy Peterson, the mother of Jeffrey
Peterson, is the beneficial owner of, and has voting and dispositive control
over, 51.7% of the Company&#146;s common stock. As the majority shareholder of the
Company, Nancy Peterson has the ability to elect all directors of the Company.
Nancy Peterson and the Company do not have a formal agreement with respect to
the designation or election of Jeffrey Peterson, or any other person, as a
director of the Company. The Board intends to review all the facts and
circumstances related to ownership of the Company&#146;s common stock, and then
determine if Jeffrey Peterson can qualify as an independent director under
Nasdaq Stock Market rules.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board
of Directors has determined that each member of the Company&#146;s Audit Committee,
Compensation Committee and Nominating Committee are independent in accordance
with the listing standards of the Nasdaq Stock Market. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Code of Ethics and Business Conduct</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
has adopted the Electro-Sensors Code of Ethics and Business Conduct (the &#147;Code
of Conduct&#148;), a code of conduct that applies to all of our directors, officers
and employees. A copy of the Code of Conduct was provided with the Proxy
Statement for the 2004 Annual Meeting of Shareholders or 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. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Director Attendance at Annual Meeting</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors&#146;
attendance at Annual Meetings can provide our shareholders with an opportunity
to communicate with directors about issues affecting the Company; thus, all
directors are expected to attend the Annual Meeting of Shareholders. All
incumbent directors attended the 2014 Annual Meeting of Shareholders. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Communications with
the Board</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
may communicate directly with the Board of Directors. 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 it is intended
for the Board of Directors 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:</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Board of Directors <BR>
Attention: Chairman, Audit Committee <BR>
Electro-Sensors, Inc. <BR>6111 Blue Circle Drive <BR>
Minnetonka, Minnesota 55343-9108</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Committees and Meetings of the Board of
Directors</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The present
standing committees of the Board of Directors are described below. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Board Meetings</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board
of Directors met five times during the last fiscal year. Each incumbent member
of the Board of Directors attended at least 75% of the total number of meetings
held by the Board of Directors and the committees on which he served. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Director Compensation</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors
who are not employees of the Company receive $1,250 per board meeting for their
services on the Board, and received equity awards in 2013 and 2014. See
&#147;Director Compensation&#148; below.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>3</font></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><B>Audit Committee</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Messrs.
Marino, Gabbard, and Zipoy currently serve as members of the Audit Committee.
This committee met twice during 2014. The Audit Committee is responsible for
selecting the Company&#146;s independent registered public accounting firm, and for
assisting the Board of Directors in its oversight of corporate accounting and
internal controls, reporting practices of the Company and the quality and
integrity of the financial reports of the Company. The Audit Committee Charter
specifies the composition and responsibilities of the committee. For more
information concerning the Audit Committee, see the Report of the Audit
Committee on page 11 and the Audit Committee Charter posted on our corporate
website under &#147;Investor Information - Corporate Governance.&#148; Given his
significant experience as a Chief Financial Officer, the Board has named Scott
Gabbard as the &#147;audit committee financial expert&#148; as defined by Item
407(d)(5)(ii) of Regulation S-K under the Securities Act of 1933. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>Compensation Committee</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Messrs.
Marino, Gabbard, and Zipoy currently serve as members of the Compensation/Stock
Option Committee (the &#147;Compensation Committee&#148;). The Compensation Committee
acts pursuant to a charter and met once during 2014. In February 2014, the
Board of Directors adopted a compensation committee charter, which is posted on
our corporate website under &#147;Corporate Governance.&#148; The Compensation Committee
is responsible for making recommendations to the Board of Directors concerning
compensation of the Company&#146;s employees, officers, and directors, and is
authorized to determine the compensation of the Company&#146;s executive officers.
The Compensation Committee is authorized to administer the various incentive
plans of the Company and has all powers of the attendant thereto, including the
power to grant employee stock options. </FONT></P>

<P><FONT SIZE=2><B>Nominating Committee </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Messrs.
Marino, Gabbard, and Zipoy currently serve as members of the Nominating
Committee. The Nominating Committee met
once during fiscal year 2014. The Nominating Committee is responsible
for evaluating and nominating or recommending candidates for the Company&#146;s
Board of Directors. A copy of the Nominating Committee Charter, which has been
adopted by the Company&#146;s Board of Directors, is posted on our corporate website
under &#147;Corporate Governance.&#148;</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>4</font></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><B>Nominating
Policy</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Nominating Committee will consider candidates for nomination as a director
recommended by shareholders, directors, third party search firms and other
sources. The Nominating Committee believes that candidates for directors should
have certain minimum qualifications, including being able to read and
understand basic financial statements, being over 18 years of age, having
familiarity with the Company&#146;s business and industry, having high moral
character and mature judgment, being able to work collegially with others, and
not currently serving on more than three Boards of public companies. The
Nominating Committee may modify these minimum qualifications from time to time.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
evaluating director nominees who meet the Company&#146;s minimum qualifications, the
Nominating Committee considers the following factors and qualifications, among
others:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="94%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>the
 appropriate size and the diversity of the Company&#146;s Board of Directors; </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>the needs of
 the Board with respect to the particular talents and experience of its
 directors; </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>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; </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>familiarity
 with domestic and international business matters; </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>age and
 legal and regulatory requirements; </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>experience
 with accounting rules and practices; </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>appreciation
 of the relationship of the Company&#146;s business to the changing needs of
 society; and </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P STYLE="text-align: justify"><FONT SIZE=2>the desire
 to balance the considerable benefit of continuity with the periodic injection
 of the fresh perspective provided by new members. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Nominating Committee will consider the attributes of the candidates and the
needs of the Board, and will review all candidates in the same manner. The
Nominating Committee does not have a diversity policy; however, as summarized
above, the Nominating Committee seeks to nominate candidates with a diverse
range of knowledge, experience, skills, expertise, and other qualities that
will contribute to the overall effectiveness of the Board of Directors.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
shareholder who wishes to recommend one or more directors must provide a
written recommendation to the Company at the address below by November 18,
2015. Notice of a recommendation must include the name and address of the
shareholder and the class and number of shares such shareholder owns. With
respect to the nominee, the shareholder should include the nominee&#146;s name, age,
business address, residence address, current principal occupation, five-year
employment history with employer names and a description of the employer&#146;s
business, the number of shares beneficially owned by the nominee, whether such
nominee can read and understand basic financial statements, and other Board
memberships, if any.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Electro-Sensors, Inc. <BR>
Attn: Chairman, Nominating Committee <BR>
6111 Blue Circle Drive <BR>
Minnetonka, MN 55343-9108</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
recommendation must be accompanied by a written consent of the nominee to stand
for election at the Annual Meeting if nominated by the Nominating Committee and
to serve if elected by the shareholders. The Company may require any nominee to
furnish additional information that may be needed to determine the eligibility
of the nominee and whether the nominee has the attributes the Board believes
are important in its composition.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>5</font></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ELECTION OF DIRECTORS<BR>
Proposals #1 and #2</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bylaws
of the Company provide that the shareholders at each Annual Meeting shall
determine the number of directors, which shall not be less than one. The
Nominating Committee and the Board of Directors recommends that the number of
directors be set at five and that five directors be elected at the Annual
Meeting to serve until the next Annual Meeting or until their successors are
duly elected and qualified. Under applicable Minnesota law and the Bylaws of
the Company, approval of the proposal to set the number of directors at five
requires the affirmative vote of the holders of a majority of the voting power
of the shares represented in person or by proxy at the Annual Meeting with
authority to vote on such matter.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Nominating Committee recommended and the Board of Directors selected the
persons named below for election to the Board of Directors. All nominees are
currently directors of the Company. If, prior to the Annual Meeting, it should become
known that any of the following individuals will be unable to serve as a
director after the Annual Meeting by reason of death, incapacity or other
unexpected occurrence, the proxies will be voted for such substitute nominee as
is selected by the Board of Directors. The Board of Directors has no reason to
believe that any of the following nominees will be unable to serve. The Bylaws
of the Company provide that directors will
be elected by a plurality of the votes cast by holders of shares present in person
or by proxy and entitled to vote on the election of directors at a meeting at
which a quorum is present.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth the principal occupations (for at least the last
five years) and directorships of the nominees:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="15%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="62%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="7%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="12%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P><FONT SIZE=1><B>Name</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P><FONT SIZE=1><B>&nbsp;</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P><FONT SIZE=1><B>Principal
 Occupation and Directorships</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B>Age</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B>Director Since</B></FONT></P>


 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=2>David L.
 Klenk</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=2>President,
 CEO, and CFO of the Company since 2013, President and director of Harland
 Medical System, Inc. (a medical technology company) from 2007 to 2013</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>50</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>2013</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Joseph A.
 Marino</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>President
 and CEO of Cardia, Inc. (a medical equipment manufacturer) since 1998</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>63</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>1994</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=2>Scott A.
 Gabbard</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=2>CFO of
 Magenic Technologies, Inc. (a software consulting organization) since 2006</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>48</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>2013</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Jeffrey D.
 Peterson</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Private
 investor since 1998. Previously employed by John G. Kinnard and Company, a
 regional brokerage firm. </FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>58</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>2011</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=2>Michael C.
 Zipoy</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=2>Investment
 executive with Feltl and Company (brokerage and investment banking firm)
 since 2005 </FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>67</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>2012</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
considering whether the nominees have the experience, qualifications,
attributes and skills, taken as a whole, to enable the Board of Directors to
satisfy its oversight responsibilities effectively in light of the Company&#146;s
business and structure, the Nominating Committee and the Board of Directors
focused on the biographical information set forth in the table above as well as
considering other relevant individual experiences that may be valuable to the
Company. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
particular with regard to Mr. Marino, the Board of Directors considered his
executive leadership experience in building both private and public companies,
including strategy formulation, execution, and investor relations. With regards
to Mr. Zipoy, the Board of Directors considered his investment experience in
small and micro cap companies and his participation in public and private
equity financing. With regards to Mr. Peterson, the Board of Directors
considered his significant experience in the investment industry and personal connections
with many regional businesses. With regards to Mr. Gabbard, the Board of
Directors considered his extensive management experience, expertise, and
background with regard to strategic, accounting and financial matters for both
public and private companies. With regard to Mr. Klenk, the Board of Directors
considered his years of leadership experience with emerging technology
companies, his high levels of customer and employee focus, and his demonstrated
ability to lead companies through significant growth cycles. </FONT></P>

<P align=center><FONT SIZE=2>6</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>SECURITY OWNERSHIP OF CERTAIN<BR>
BENEFICIAL OWNERS AND MANAGEMENT</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information, as of March 16, 2015, regarding the
beneficial ownership of the outstanding shares of Common Stock by persons known
by the Company to beneficially own more than 5% of the outstanding shares of
Common Stock, by directors and director nominees, by the executive officers
named in the Summary Compensation Table, and by the Company&#146;s current directors
and executive officers as a group.</FONT></P>



<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="51%" VALIGN=TOP>
 <P  STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD WIDTH="30%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="18%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=bottom STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1>Common Stock</FONT></P>


 </TD>
 </TR>
 <TR>
 <TD VALIGN=bottom STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'><FONT SIZE=1>Name and
 Address<BR>
 of Beneficial Owner</FONT></P>


 </TD>
 <TD VALIGN=bottom STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1>Number of Shares <BR>
 Beneficially Owned<SUP>(1)</SUP></FONT></P>


 </TD>
 <TD VALIGN=bottom STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1>Percent <BR>
 of Class</FONT></P>


 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Nancy Peterson. <BR>
 805 Main Street <BR>
 Hopkins, MN 55343</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>1,754,464 (2)</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>51.7%</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>David L. Klenk <BR>
 6111 Blue Circle Dr <BR>
 Minnetonka, MN 55343</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>50,000 (3)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>1.5%</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Joseph A. Marino <BR>
 2900 Lone Oak Parkway, Suite 130 <BR>
 Eagan, MN 55121</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>22,500 (3)</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Scott A. Gabbard <BR>
 6111 Blue Circle Dr<BR>
 Minnetonka, MN 55343</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>20,000 (3)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Jeffrey D. Peterson<BR>
 6111 Blue Circle Dr <BR>
 Minnetonka, MN 55343</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>22,500 (3)</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Michael C. Zipoy <BR>
 10900 Wayzata Blvd Suite 200 <BR>
 Minnetonka, MN 55305</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>27,500 (4)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Officers and Directors as a Group (5
 persons)</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>137,500</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>4.0%</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Indicates
ownership of less than one percent (1.0%).</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="95%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(1)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Except as otherwise indicated, each person named or included in the
 group has the sole power to vote and sole power to direct the disposition of
 all shares listed as beneficially owned by him or her. Beneficial ownership
 information is based on information furnished by the specified persons and is
 determined in accordance with Rule 13d-3 under the Securities Exchange Act of
 1934 (the &#147;Exchange Act&#148;), as required for purposes of this Proxy Statement.
 Accordingly, it includes shares of Common Stock that are issuable upon the exercise
 of stock options exercisable within 60 days of March 16, 2015. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(2)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Includes 499,313 shares held in an IRA Plan. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(3)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Represents shares issuable upon the exercise of stock options
 exercisable within 60 days.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(4)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Includes 22,500 shares issuable upon the exercise of stock options
 exercisable within 60 days.</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><B>TRANSACTIONS WITH RELATED PERSONS,<BR>
PROMOTERS AND CERTAIN CONTROL PERSONS</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
was not a party to any transactions with related persons, promoters or control
persons during the last fiscal year, nor are any such transactions currently
being contemplated by the Company. </FONT></P>

<P align=center><FONT SIZE=2>7</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>EXECUTIVE COMPENSATION</B></FONT></P>

<P><FONT SIZE=2><B>Compensation Summary</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table summarizes information concerning the compensation awarded or
paid to, or earned by, the Company&#146;s Named Executive Officer during 2014. Mr.
Klenk was the only person who served as an executive officer in 2014. David L.
Klenk became Chief Executive Officer and Chief Financial Officer on July 17,
2013.</FONT></P>

<div ALIGN=CENTER><FONT SIZE=2><B>Summary Compensation Table</B></FONT></div>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 STYLE='BORDER-COLLAPSE:COLLAPSE;BORDER:NONE' width=80% align=center>
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="1%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="20%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="9%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="18%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="11%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="13%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="12%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="13%" VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  SOLID BLACK .5PT;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:NONE'>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>Name
 and <BR>
 principal <BR>
 position</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>Year</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>Salary<BR>
 ($)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>Bonus<BR>
 ($)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>Option
 <BR>
 awards <BR>
 ($)</FONT></P>
 </TD>
 <TD nowrap VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>All
 <BR>
 other <BR>
 compensation<BR>
 ($)(2)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>Total
 <BR>
 ($)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-top:NONE;BORDER-left:  SOLID BLACK .5PT;BORDER-bottom:SOLID BLACK .5PT'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-RIGHT:SOLID BLACK .5PT;BORDER-bottom:SOLID BLACK .5PT;BORDER-top:SOLID BLACK .5PT'>
 <P><FONT SIZE=2>David
 L. Klenk, <BR>
 President, CEO, <BR>
 CFO</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>2014<BR>
 2013</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>152,884<BR>
 62,885</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>50,000<BR>
 20,833</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>0<BR>
 89,302(1)</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>18,156<BR>
 7,367</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>221,040<BR>
 180,387</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr. Klenk
was awarded 50,000 stock options upon his appointment as President. Those
options were fully vested when granted. The option value shown is the grant
date fair value computed in accordance with FASB ASC Topic 718.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts
reflect allocations to individual&#146;s account of Company contributions to the
ESOP, 401(k) Plan, and standard employee benefit plans. The Company matches
100% of the first 2% of employee 401(k) Plan contributions and 50% of the next
4% of employee contributions.</FONT></P>

<P><FONT SIZE=2><B>Compensation of Executive Officer</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Mr. Klenk does not have a written employment agreement with the
Company. As of November 11, 2014 he receives an annual salary at the rate of
$175,000 per year, and is eligible to receive bonuses as determined by either
the Board of Directors or the Compensation Committee. The 2014 and 2013 bonuses
were paid at the discretion of the Board.</FONT></P>

<P><FONT SIZE=2><B>Outstanding Equity Awards as of December 31,
2014 </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The following table sets forth certain information concerning equity
awards outstanding to the Named Executive Officer at December 31, 2014:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=80% align=center>
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="16%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="19%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="20%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="21%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="21%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=6 VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B>Outstanding Equity Awards at Fiscal Year-End</B></FONT></P>


 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B>Option Awards</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P><FONT SIZE=1><B>&nbsp;</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P><FONT SIZE=1><B>&nbsp;</B></FONT></P>


 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B><BR>
 <BR>
 <BR>
 <BR>
 Name</B></FONT></P>


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B>Number of<BR>
 securities<BR>
 underlying<BR>
 unexercised options<BR>
 (#)exercisable</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B><BR>
 Number of securities<BR>
 underlying unexercised<BR>
 options (#)<BR>
 unexercisable</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B><BR>
 <BR>
 Option <BR>
 Exercise Price <BR>
 ($)</B></FONT></P>


 </TD>
 <TD VALIGN=TOP STYLE="BORDER-BOTTOM:SOLID BLACK 1PX">
 <P ALIGN=CENTER><FONT SIZE=1><B><BR>
 <BR>
 Option <BR>
 Expiration <BR>
 Date</B></FONT></P>


 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=2>Mr. Klenk</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>50,000</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>None</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>4.21</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8">
 <P ALIGN=CENTER><FONT SIZE=2>7/23/2023</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>2015 Management Incentive Bonus Plan</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>On March 5, 2015, the Compensation Committee approved the 2015
Management Incentive Plan (the &#147;2015 Plan&#148;) for the Company&#146;s President and
Chief Financial Officer, David L. Klenk. The 2015 Plan has both annual
financial performance goals as well as a discretionary component. The financial
performance goals are primarily related to the achievement of specified revenue
levels, with additional amounts available for exceeding certain levels. The
discretionary component is related to the achievement of strategic initiatives
as identified by the Compensation Committee and/or Board of Directors. The
Company has allocated 75% of the potential bonus to financial performance and
25% to strategic initiatives. If the Company achieves the specified goals the
incentive cash payment to Mr. Klenk will equal approximately 28.5% of his base
salary. Furthermore, the Committee retains discretion under the 2015 Plan to
make incentive plan cash payments in amounts higher or lower than would
otherwise be required under the 2015 Plan.</FONT></P>

<P align=center><FONT SIZE=2>8</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P align=center><FONT SIZE=2><B>DIRECTOR COMPENSATION</B></FONT></P>
<P ><FONT SIZE=2><B>Compensation Summary</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table summarizes information concerning the compensation awarded or
paid to, or earned by, the Company&#146;s non-employee directors during the last
fiscal year. Directors who are not employees of the Company receive $1,250 per
board meeting for their services on the Board. Mr. Gabbard received 25,000
stock options during 2014. </FONT></P>

<div ALIGN=CENTER><FONT SIZE=2><B>Director Compensation Table</B></FONT></div>

<TABLE BORDER=1 CELLSPACING=0 CELLPADDING=0 STYLE='BORDER-COLLAPSE:COLLAPSE;BORDER:NONE' width=80% align=center>
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="28%" VALIGN=TOP STYLE='BORDER:NONE;BORDER-BOTTOM:SOLID BLACK .5PT'>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="44%" VALIGN=TOP STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="13%" VALIGN=TOP STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="13%" VALIGN=TOP STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM STYLE='BORDER:SOLID BLACK .5PT;BORDER-TOP:NONE'>
 <P ALIGN=CENTER><FONT SIZE=1><B>Director Name</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1><B>Fees earned <BR>
 or paid in <BR>
 cash ($)</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1><B>Option<BR>
 awards<BR>
 ($) (1)</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1><B>Total<BR>
 ($)</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER:SOLID BLACK .5PT;BORDER-TOP:NONE;BACKGROUND:#D6F3E8'>
 <P><FONT SIZE=2>Joseph A. Marino</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>6,250</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>6,250</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP STYLE='BORDER:SOLID BLACK .5PT;BORDER-TOP:NONE'>
 <P><FONT SIZE=2>Scott A. Gabbard</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=2>6,250</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=2>35,137</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=2>41,387</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER:SOLID BLACK .5PT;BORDER-TOP:NONE;BACKGROUND:#D6F3E8'>
 <P><FONT SIZE=2>Jeffrey D. Peterson</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>6,250</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#D6F3E8" STYLE='BORDER-TOP:  NONE;BORDER-LEFT:NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT;BACKGROUND:#D6F3E8'>
 <P ALIGN=CENTER><FONT SIZE=2>6,250</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP STYLE='BORDER:SOLID BLACK .5PT;BORDER-TOP:NONE'>
 <P><FONT SIZE=2>Michael C. Zipoy</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=2>6,250</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER-TOP:NONE;BORDER-LEFT:  NONE;BORDER-BOTTOM:SOLID BLACK .5PT;BORDER-RIGHT:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=2>6,250</FONT></P>
 </TD>
 </TR>
</TABLE>

<P align=justify STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-17.65PT'><FONT  SIZE=2>(1) &nbsp;&nbsp;Mr.
Gabbard received a grant of options to purchase 25,000 shares as a portion of
his 2014 board compensation. The grant vested 20% upon the date of grant and
will fully vest in four years. The option value shown is the grant date fair
value computed in accordance with FASB ASC Topic 718.</FONT></P>


<P ALIGN=CENTER><FONT SIZE=2><B>SECTION 16(a) BENEFICIAL OWNERSHIP<BR>
REPORTING COMPLIANCE</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Pursuant to Section 16(a) of the Exchange Act, the Company&#146;s directors,
its executive officers, and any persons who beneficially own more than 10% of
the Company&#146;s Common Stock are required to report their initial ownership of
Common Stock and subsequent changes in that ownership to the Securities and
Exchange Commission. Specific due dates for those reports have been
established, and the Company is required to disclose in this Proxy Statement
any failure to file by those due dates during fiscal 2014. Based upon a review
of such reports furnished to the Company, or written representations that no
reports were required, the Company believes that all of those filing
requirements were satisfied with respect to fiscal 2014.</FONT></P>

<P align=center><FONT SIZE=2>9</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=CENTER><FONT SIZE=2><B>RATIFICATION OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM<BR>
Proposal #3</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors retained Boulay PLLP as its principal independent
registered public accounting firm for the year ended December&nbsp;31, 2014 and
has selected Boulay PLLP to serve as the Company&#146;s independent registered
public accounting firm for the year ending December&nbsp;31, 2015. The Board of
Directors desires that the selection of this independent registered public
accounting firm be submitted to the shareholders for ratification, which
ratification requires 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. If the selection is not ratified, the Board of Directors
will reconsider its decision.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
representative of Boulay PLLP is expected to be present at the Annual Meeting,
will have an opportunity to make a statement if he or she desires to do so and
will be available to respond to appropriate questions.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>DISCLOSURE OF FEES PAID TO INDEPENDENT
AUDITORS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following fees were paid to Boulay PLLP in 2014 and 2013:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="60%" STYLE="BORDER-COLLAPSE:COLLAPSE;BORDER:NONE" ALIGN="CENTER">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="25%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN="TOP" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="7%" VALIGN="TOP" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="9%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="9%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="BORDER:NONE">
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER:NONE'>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER:NONE'>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1><B>2014</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1><B>2013</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>Audit Fees</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BORDER-TOP:SOLID BLACK .5PT;BACKGROUND:#d6f3e8'>
 <P ALIGN=RIGHT><FONT SIZE=2>67,000</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BACKGROUND:#d6f3e8'>
 <P ALIGN=RIGHT><FONT SIZE=2>67,800</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=2>Audit-Related fees</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>Tax Fees</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BACKGROUND:#d6f3e8'>
 <P ALIGN=RIGHT><FONT SIZE=2>7,412</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BACKGROUND:#d6f3e8'>
 <P ALIGN=RIGHT><FONT SIZE=2>6,448</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=2>All Other Fees</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=RIGHT><FONT SIZE=2>1,765</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P ALIGN=RIGHT><FONT SIZE=2>830</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM STYLE='BORDER:NONE;BORDER-BOTTOM:  SOLID BLACK .5PT'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>Total</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BORDER-BOTTOM:DOUBLE BLACK 1.5PT;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BORDER-BOTTOM:DOUBLE BLACK 1.5PT;BACKGROUND:#d6f3e8'>
 <P ALIGN=RIGHT><FONT SIZE=2>76,177</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:NONE;BORDER-BOTTOM:DOUBLE BLACK 1.5PT;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BORDER-BOTTOM:DOUBLE BLACK 1.5PT;BACKGROUND:#d6f3e8'>
 <P ALIGN=RIGHT><FONT SIZE=2>75,078</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#d6f3e8" STYLE='BORDER:  NONE;BORDER-BOTTOM:DOUBLE BLACK 1.5PT;BACKGROUND:#d6f3e8'>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit
Fees</B> were for professional services rendered for the
audit of the Company&#146;s consolidated financial statements and review of the
interim consolidated financial statements included in quarterly reports and
services in connection with statutory and regulatory filings or engagements. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit-Related
Fees</B> consist of the review of and discussion with
management regarding certain accounting treatment.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Tax Fees</B> were for professional services
rendered for preparation of the Company&#146;s annual tax return, quarterly
estimates, and state returns. Tax examination consulting is also included.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Other Fees</B> represent fees for any professional
services not included in the first three categories listed above.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to
its written charter, the Audit Committee is required to pre-approve all audit
services, as well as all non-audit services performed by the Company&#146;s
independent registered public accounting firm in order to ensure that the
provision of these non-audit services does not impair the auditor&#146;s
independence. Unless a particular service has received general pre-approval by
the Audit Committee in accordance with the Audit Committee&#146;s pre-approval policy,
each service provided must be specifically pre-approved. Any proposed services
exceeding pre-approved costs levels will require specific pre-approval by the
Audit Committee. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of
the Company&#146;s annual engagement agreement with its independent registered
public accounting firm, the Audit Committee pre-approves the following audit
services to be provided by the independent auditor: statutory and financial
audits for the Company and any of its subsidiaries and affiliates, audit
services associated with SEC registration statements, periodic reports and
other documents filed with the SEC, production of other documents issued by the
independent registered public accounting firm in connection with securities
offerings (e.g., comfort letters, consents), and assistance in responding to
SEC comment letters. The Audit Committee also provides pre-approval in the
annual engagement of consulting services provided by the independent registered
public accounting firm related to the accounting or disclosure treatment of
transactions or events and the actual or potential impact of final or proposed
rules, standards or interpretations by the SEC, FASB, or other regulatory or
standard-setting bodies. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit
Committee has also provided the Company&#146;s independent registered public
accounting firm with a general pre-approval of certain non-audit services,
primarily tax services. The Audit Committee does not believe that performance
of these tax services impairs the auditor&#146;s independence. Specifically, the
Audit Committee has given the independent registered public accounting firm
pre-approval for U.S. federal, state, and local tax planning and advice, U.S.
federal, state, and local tax compliance, international tax planning and
advice, international tax compliance, and tax planning and advice related to
merger and acquisition activities. The Company&#146;s independent registered public
accounting firm must inform the Audit Committee whenever a pre-approved service
is provided. The aggregate amount of fees for these pre-approved tax services
may not exceed $8,000 without additional explicit approval by the Audit
Committee. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </FONT></P>

 <P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>REPORT OF THE AUDIT COMMITTEE</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee of the Board of Directors is comprised of three
directors who are independent of the Company and management as required by the
NASDAQ corporate governance listing standards and by SEC rules. The Audit
Committee operates under a written charter adopted by the Board of Directors. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee oversees the Company&#146;s financial reporting process
on behalf of the Board of Directors. Management is responsible for the
Company&#146;s financial statements and the financial reporting process, including
implementing and maintaining effective internal control over financial
reporting and for the assessment of, and reporting on, the effectiveness of
internal control over financial reporting. The independent auditors are
responsible for expressing an opinion on the conformity of those audited
financial statements with accounting principles generally accepted in the
United States. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fulfilling its oversight responsibilities, the Audit Committee has
reviewed and discussed with management and the independent auditors the
Company&#146;s audited financial statements for the year ended December&nbsp;31,
2014, and discussed with management the effectiveness of the Company&#146;s internal
control over financial reporting as of December&nbsp;31, 2014 contained in the
Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2014,
including a discussion of the reasonableness of significant judgments and the
clarity of disclosures in the financial statements. The Audit Committee also
reviewed and discussed with management and the independent auditors the
disclosures made in &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; included in the Company&#146;s 2014 Annual
Report to Shareholders and its Annual Report on Form 10-K for the year ended
December&nbsp;31, 2014. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee has discussed with the independent auditors the
matters required to be discussed by Public Company Accounting Oversight Board
(&#147;PCAOB&#148;) Auditing Standards AU Section&nbsp;380, Communication With Audit
Committees. In addition, the Audit Committee has discussed with the independent
auditors the auditor&#146;s independence from the Company and its management,
including the matters in the written disclosures and the letter provided by the
independent auditors to the Audit Committee as required by applicable
requirements of the PCAOB regarding the independent auditor&#146;s communications
with the Audit Committee concerning independence, and has considered the
compatibility of non-audit services with the auditor&#146;s independence. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee discussed with the Company&#146;s independent auditors the
overall scope and plans for their integrated audit. The Committee meets with
the independent auditors, with and without management present, to discuss the
results of their examinations, their evaluations of the Company&#146;s internal
controls and the overall quality of the Company&#146;s financial reporting. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the reviews and discussions referred to above, the Audit
Committee recommended to the Board of Directors, and the Board has approved,
that the audited financial statements for the year ended December&nbsp;31, 2014
be included in the Company&#146;s Annual Report on Form 10-K for the year ended
December&nbsp;31, 2014 for filing with the SEC. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Audit Committee<BR></B><I>Scott A. Gabbard, Chair</I><BR>
<I>Joseph A.
Marino</I><BR>
<I>Michael
C. Zipoy</I></FONT></P>
 <P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>OTHER MATTERS</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board
of Directors knows of no other matters to be brought before the Annual Meeting.
However, if any other matters are properly brought before the Annual Meeting,
it is the intention of the persons named in the accompanying proxy to vote in
accordance with their judgment on such matters.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>SHAREHOLDER PROPOSALS</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder
proposals for the proxy statement for the 2016 Annual Meeting of Shareholders
of the Company must be received no later than November 18, 2015 at the
Company&#146;s principal executive offices, 6111 Blue Circle Drive, Minnetonka,
Minnesota 55343, directed to the attention of the Chairman of the Audit
Committee, or the Chairman of the Nominating Committee if the proposal relates
to the nomination of a director, in order to be considered by the Board of
Directors for inclusion in next year&#146;s Annual Meeting proxy material under the
SEC&#146;s proxy rules. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, if a
shareholder proposal intended to be presented at the next Annual Meeting but
not included in the Company&#146;s proxy statement and proxy is received by the
Company after February 1, 2016, then management named in the Company&#146;s proxy
form for the next Annual Meeting will have discretionary authority to vote
shares represented by such proxies on the shareholder proposal, if presented at
the meeting, without including information about the proposal in the Company&#146;s
proxy material.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>FORM 10-K</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of
the Company&#146;s Annual Report to the Securities and Exchange Commission on Form
10-K for the fiscal year ended December 31, 2014 has been provided with this
Proxy Statement. The Company will furnish to any shareholder, upon written
request, any exhibit described in the list accompanying the Form 10-K upon the
payment, in advance, of reasonable fees related to the Company&#146;s furnishing
such exhibits(s). Any such request should include a representation that the
shareholder was the beneficial owner of shares of Electro-Sensors Common Stock
on February 23, 2015, the record date for the 2015 Annual Meeting, and should
be directed to Mr. David Klenk, Chief Executive Officer, at the Company&#146;s
principal address.</FONT></P>

<P><FONT SIZE=2><B>The foregoing Notice of Annual Meeting and
Proxy Statement are sent by order of the Board of Directors.</B></FONT></P>

<P><FONT SIZE=2>David L. Klenk</FONT></P>

<P><FONT SIZE=2>President<BR>
March 16, 2015</FONT></P>
 <P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P align=center><FONT size=3 face=ARIAL><B>ANNUAL MEETING OF SHAREHOLDERS
OF</B></FONT></P>
<P align=center><FONT size=6 face=ARIAL><B>ELECTRO-SENSORS, INC.</B></FONT></P>
<P align=center><FONT size=3 face=ARIAL><B>April 22, 2015</B></FONT></P>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="58%" align=center>

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="1%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="38%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="1%">
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P align=center><FONT size=1 face=ARIAL><B>GO GREEN</B></FONT></P></TD>
    <TD vAlign=top>
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=justify><FONT size=1 face=ARIAL>e-Consent makes it easy to go
      paperless. With e-Consent, you can quickly access your proxy material,
      statements and other eligible documents online, while reducing costs,
      clutter and paper waste. Enroll today via www.amstock.com to enjoy online
      access. </FONT></P></TD>
    <TD vAlign=top>
      <P>&nbsp;</P></TD></TR></TABLE>
<P align=center><FONT size=2 face=ARIAL><U><B>IMPORTANT NOTICE REGARDING THE
AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING</B></U>:<B><BR></B>The
Proxy Statement, Form of Proxy, and Annual Report on Form 10-K <BR>are available
at http://www.idelivercommunications.com/proxy/else</FONT></P><BR><BR>
<P align=center><FONT size=5 face=ARIAL>Please sign, date and mail<BR>your proxy
card in the<BR>envelope provided as soon<BR>as possible.</FONT></P><BR>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="25%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="50%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="25%">
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt dotted">
       <P align=right><FONT SIZE=2><img src="a151007001a_v1.jpg" alt="(GRAPHIC)"></FONT></P>
</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt dotted">
      <P align=center><FONT size=1 face=ARIAL>Please detach along perforated
      line and mail in the envelope provided.</FONT></P></TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt dotted">
       <P><FONT SIZE=2><img src="a151007001a_v1.jpg" alt="(GRAPHIC)"></FONT></P>
</TD></TR></TABLE><BR>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="4%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="46%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="50%">
      <P align=center>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
       <P><FONT SIZE=2><img src="a151007001_v1.jpg" alt="(GRAPHIC)"></FONT></P>
      </TD>
    <TD vAlign=top>
      <P><FONT size=3
      face=ARIAL>20533000000000000000&nbsp;&nbsp;&nbsp;4</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=3
face=ARIAL>042215</FONT></P></TD></TR></TABLE><BR>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%" align=center>

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="100%">
      <P align=center>&nbsp;</P></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: black 1px solid; BORDER-TOP: black 1px solid"
    vAlign=top>
      <P align=center><FONT STYLE="font: xx-small ARIAL"><B>THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED OR, IF
NO DIRECTION IS GIVEN FOR A PARTICULAR PROPOSAL, <BR>
WILL BE VOTED FOR SUCH PROPOSAL AND FOR THE ELECTION OF EACH DIRECTOR <BR>
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE&nbsp;</B> &#9746;</FONT></P></TD></TR></TABLE>
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    <TD vAlign=top>
      <P><FONT size=1 face=ARIAL>2.</FONT></P></TD>
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      <P
      style="TEXT-INDENT: -3.65pt; MARGIN-LEFT: 3.65pt; MARGIN-RIGHT: 0in"><FONT
      size=1 face=ARIAL>&nbsp;To elect five directors to serve until the next
      annual meeting of shareholders:</FONT></P></TD>
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      <P><FONT size=1 face=ARIAL><BR><B>NOMINEES:</B></FONT></P></TD>
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      <P>&#9744;</P></TD>
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      <P><FONT size=1 face=ARIAL><B>FOR ALL NOMINEES</B> </FONT></P></TD>
    <TD vAlign=bottom>
      <P align=left><FONT size=4>&#9675;&nbsp;</FONT></P></TD>
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      <P><FONT size=1 face=ARIAL>David L. Klenk</FONT></P></TD>
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      <P align=left><FONT size=4>&#9675;&nbsp;</FONT></P></TD>
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      <P><FONT size=1 face=ARIAL>Jeffrey D. Peterson</FONT></P></TD>
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      <P>&#9744;</P></TD>
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      <P><FONT size=1 face=ARIAL><B>WITHHOLD AUTHORITY<BR>FOR ALL
      NOMINEES</B></FONT></P></TD>
    <TD vAlign=Middle>
      <P align=left><FONT size=4>&#9675;&nbsp;</FONT></P></TD>
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      <P><FONT size=1 face=ARIAL>Scott A. Gabbard</FONT></P></TD>
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    <TD vAlign=top>
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      <P><FONT size=1 face=ARIAL>Joseph A. Marino</FONT></P></TD>
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    <TD vAlign=top>
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      <P><FONT size=1 face=ARIAL>Michael C. Zipoy</FONT></P></TD>
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      <P>&#9744;</P></TD>
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      <P><FONT size=1 face=ARIAL><B>FOR ALL EXCEPT</B><BR>(See instructions
      below) </FONT></P></TD>
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      <P><FONT size=1 face=ARIAL><U><B>INSTRUCTIONS:</B></U>&nbsp;
</FONT></P></TD>
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      <P><FONT STYLE="font: xx-small ARIAL">To withhold authority to vote for any individual nominee(s), mark &ldquo;<B>FOR ALL EXCEPT&rdquo;
</B>and fill in the circle next to each nominee you wish to withhold, as shown here: <FONT size=4 face=ARIAL>&#9679;</FONT></FONT></P></TD>
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    <TD vAlign=top>&nbsp; </TD>
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      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD style="BORDER-RIGHT: black 1px solid" vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=7>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid; BORDER-RIGHT: black 1px solid"
    vAlign=top>
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=7>
      <P align=justify><FONT size=1 face=ARIAL>To change the address on your
      account, please check the box at right and indicate your new address in
      the address space above. Please note that changes to the registered
      name(s) on the account may not be submitted via this method.</FONT></P></TD>
    <TD colSpan=2>
      <P align=right><FONT STYLE="font-size: 12pt">&#9744;</FONT></P></TD>
    <TD style="BORDER-RIGHT: black 1px solid" vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid" vAlign=top colSpan=7>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid" vAlign=top>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: black 1px solid; BORDER-RIGHT: black 1px solid"
    vAlign=top>
      <P>&nbsp;</P></TD></TR></TABLE></DIV>
<DIV style="POSITION: relative; MARGIN: 0%; WIDTH: 47%; FLOAT: right">
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="5%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="50%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="6%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="6%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="6%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="6%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="6%">
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt" face=ARIAL>FOR</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL>AGAINST</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL>ABSTAIN</FONT></P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1 face=ARIAL>1.</FONT></P></TD>
    <TD vAlign=top colSpan=2>
      <P align=justify><FONT size=1 face=ARIAL>To set the number of directors at
      five.</FONT></P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center>&#9744;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center>&#9744;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center>&#9744;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1 face=ARIAL>3.</FONT></P></TD>
    <TD vAlign=top colSpan=2>
      <P align=justify><FONT size=1 face=ARIAL>To ratify the appointment of
      Boulay P.L.L.P as Independent Registered Public Accounting Firm for the
      fiscal year ending December 31, 2015.</FONT></P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center>&#9744;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center>&#9744;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center>&#9744;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT style="FONT-SIZE: 6pt"
    face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1 face=ARIAL>4.</FONT></P></TD>
    <TD vAlign=top colSpan=8>
      <P align=justify><FONT size=1 face=ARIAL>To transact such other business
      as may properly come before the meeting or any adjournment or postponement
      thereof.</FONT></P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=9>
      <P align=justify><FONT size=1 face=arial><B>THIS PROXY WHEN PROPERLY
      EXECUTED WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN FOR A
      PARTICULAR PROPOSAL, WILL BE VOTED FOR SUCH PROPOSAL AND FOR THE ELECTION
      OF EACH DIRECTOR.</B></FONT></P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1 face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=justify><FONT size=1 face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=3 face=WINGDINGS></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=3 face=WINGDINGS></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=3 face=WINGDINGS></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=3 face=WINGDINGS></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1 face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=8>
      <P align=justify><FONT size=1 face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=8>
      <P align=justify><FONT size=1 face=ARIAL></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR></TABLE></DIV><BR clear=all>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%" align=center>

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="10%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="16%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="1%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="10%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="8%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="16%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="10%">
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=bottom noWrap>
      <P><FONT size=1 face=ARIAL>&nbsp;&nbsp;Signature of
      Shareholder&nbsp;</FONT></P></TD>
    <TD
    style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 1px solid"
    vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P><FONT size=1 face=ARIAL>Date:&nbsp;</FONT></P></TD>
    <TD
    style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 1px solid"
    vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=bottom noWrap>
      <P><FONT size=1 face=ARIAL>&nbsp;Signature of
    Shareholder&nbsp;</FONT></P></TD>
    <TD
    style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 1px solid"
    vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P><FONT size=1 face=ARIAL>&nbsp;&nbsp;Date:&nbsp;</FONT></P></TD>
    <TD
    style="BORDER-BOTTOM: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 1px solid"
    vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR></TABLE>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%" align=center>

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="4%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="90%">
      <P>&nbsp;</P></TD>
    <TD vAlign=top width="2%">
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1
      face=ARIAL><B>&nbsp;&nbsp;&nbsp;Note:&nbsp;&nbsp;</B></FONT></P></TD>
    <TD vAlign=top rowSpan=3>
      <P style="MARGIN-RIGHT: 10px" align=justify><FONT size=1 face=ARIAL>Please
      sign exactly as your name or names appear on this proxy. When shares are
      held jointly, each holder should sign. When signing as executor,
      administrator, attorney, trustee or guardian, please give full title as
      such. If the signer is a corporation, please sign full corporate name by
      duly authorized officer, giving full title as such. If signer is a
      partnership, please sign in partnership name by authorized
      person.</FONT></P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
       <P><FONT SIZE=2><img src="a151007001_v1.jpg" alt="(GRAPHIC)"></FONT></P></td>
    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>

    <TD vAlign=top>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
             <P><FONT SIZE=2><img src="a151007001_v1.jpg" alt="(GRAPHIC)"></FONT></P>
      </TD></TR></TABLE><BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%" align=center>

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="3%">
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=top width="94%">
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=top width="3%">
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P align=right><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top>
      <P align=right><FONT size=1>&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
      size=1>&nbsp;</FONT></P></TD>
    <TD vAlign=top>
             <P align=right><FONT SIZE=2><IMG SRC="a151007001_v1.jpg" ALT="(GRAPHIC)" STYLE="width: 15px; height: 13px"></FONT></P></TD></TR></TABLE><BR><BR><BR><BR>
<P style="LINE-HEIGHT: 25px" align=center><FONT size=4
face=ARIAL><B>ELECTRO-SENSORS, INC.</B> </FONT><BR><FONT size=4
face=ARIAL><B>THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF
DIRECTORS<BR>PROXY FOR ANNUAL MEETING</B> </FONT><BR><FONT size=3
face=ARIAL><B>April 22, 2015</B> </FONT></P>
<P align=justify><FONT size=2
face=ARIAL>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby appoints DAVID L. KLENK, with full power of substitution, as
his or her Proxy to represent and vote, as designated below, all shares of the
Common Stock of Electro-Sensors Inc. registered in the name of the undersigned
at the Annual Meeting of Shareholders of the Company to be held at the Sheraton
Minneapolis West Hotel, 12201 Ridgedale Drive, Minnetonka, Minnesota, at 2:00
p.m. local time, on April 22, 2015, and at any adjournment thereof. The
undersigned hereby revokes all proxies previously granted with respect to such
meeting.</FONT></P>
<P align=center><FONT size=3 face=ARIAL><B>(Continued and to be signed on the
reverse side)</B> </FONT></P><BR><BR>
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%" align=center>

  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="3%">
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=top width="6%">
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=top width="82%">
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=top width="6%">
      <P align=right>&nbsp;</P></TD>
    <TD vAlign=top width="3%">
      <P>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
       <P><FONT SIZE=2><img src="a151007001_v1.jpg" alt="(GRAPHIC)"></FONT></P></td>
    <TD vAlign=top>
      <P align=left><FONT size=2 face=ARIAL>1.1</FONT></P></TD>
    <TD vAlign=top>
      <P align=center><FONT size=1 face=ARIAL></FONT>&nbsp;</P></TD>
    <TD Align=center>
      <P align=right><FONT size=2 face=ARIAL>14475&nbsp;&nbsp;</FONT></P></TD>
    <TD vAlign=top>
       <P align=right><FONT SIZE=2><img src="a151007001_v1.jpg" alt="(GRAPHIC)"></FONT></P></TD></TR>
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