Ted Karkus Named CEO of The Quigley Corporation; Robert V. Cuddihy, Jr. Named Chief Operati...(M&A restructurings and divestitures....),Health

The Board of Directors offered, and Mr. Karkus accepted, the position of CEO at a salary of $750,000 (plus customary employee benefits). The Board also offered, and Mr. Cuddihy accepted, the position of COO at a base salary of $275,000 (plus customary employee benefits) as well as an annual grant of $50,000 in the Company's common stock. Mr. Karkus was formerly the interim CEO and Mr. Cuddihy was formerly a financial consultant to the Company while the Board was reviewing the Company's operations.

The Company does not have a currently effective equity compensation plan. Accordingly, neither Mr. Karkus nor the current board members may receive stock options or stock grants unless and until such time as an equity incentive plan is adopted by shareholders.

Recent resignations of senior executives and further reductions of head count have reduced the Company's overall payroll expense by approximately $1.75 million per year, compared to 2008 levels, even after the hiring of Mr. Karkus and Mr. Cuddihy.

The Compensation Committee of the Board of Directors was assisted by Buck Consultants in formulating the CEO compensation arrangement and has been engaged as the compensation consultant to the Compensation Committee.

Buck Consultants, a wholly owned subsidiary of ACS, began in 1916 and has grown into a diversified firm that provides consulting services to both public and private entities, large and small, covering the entire employee benefit, compensation and broader human resource management fields. Today, Buck is one of the leading benefit and compensation consulting and actuarial services firms in the world with more than 1,500 professionals worldwide.

About The Quigley Corporation

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