Employee Benefits Guide - Advancing the New Vision

1 Employee Benefits Guide 2017 PLAN YEAR. Dear Colleagues: Here at Akorn we take a total rewards perspective. In addition to the financial components that you receive, our Benefits package is a key element in our total rewards program. Just as we are dedicated to improving patients' lives through the quality, availability and affordability of our products, we have the same focus on the Benefits that we provide to our employees. For 2017, our Benefits offerings are the same as in 2016. We are maintaining our current providers across the various health and welfare Benefits ( medical, dental, Vision and pharmacy) and will continue to offer our longer term retirement program through our Fidelity Smart Choice! 401(k). Additionally, we have a broad range of voluntary programs such as the Employee Stock Purchase Plan, additional group life and accident insurance and pet insurance to name a few.

2 The vendors we utilize are of high quality and our plans are structured to allow you to get care in or out of the different networks. We all recognize that healthcare costs continue to go up. In looking at 2017, we have projected a significant increase here at Akorn. To better manage costs and maintain affordability of our plans to all employees, we are very pleased to announce that we have changed our Employee premium contribution strategy. We are establishing Employee premium contributions based on three salary tiers. In 2017, 87% of our employees will find their contributions have either been reduced or are increasing by only 3%. We also value our employees' wellness and will again have higher Employee premium contributions for those employees who choose not to engage in our biometric screenings and healthcare assessments.

3 However, these non-participating rates will not be applied until March 1, 2017 (or 60 days after you enroll in Benefits as a new hire). We hope that you find this 2017 Employee Benefit Guide helpful as you make your initial benefit choices, but also as a reference throughout the year. If you have any questions, please feel free to contact the providers or your Human Resources Representative. Whether you are a long-term Akorn Employee or just getting started with us, we want to thank you for what you do in making Akorn the vibrant pharmaceutical company that we are today and will continue to be in the future. Gregory P. Lawless Chief Human Resources Officer 2. Benefits at a Glance Benefit If You Are Eligible You May Take This Action See Page Enroll in one of two options through Blue Cross Blue Shield of Illinois Medical and or waive coverage.

4 Prescription drug Benefits are included through 7-9. Prescription Drug CVS/caremark. If you elect the Accountable Care medical plan, Akorn contributes Health Savings $500 or $1,000 to your HSA depending whether or not your 10. Account (HSA). dependents are covered under the plan. Teladoc You are automatically enrolled if you elect a medical plan. 11. Vision You are automatically enrolled if you elect a medical plan. 12. Dental Choose to enroll or waive coverage in the Delta Dental Plan. 13. Akorn provides full-time employees with group life and accidental Company Paid Life and death and dismemberment (AD&D) insurance and pays the full cost 14. AD&D Insurance this benefit. Visit ADP to update your beneficiary information as needed. You are eligible for Short Term Disability and Long Term Disability Company Paid Insurance, which pays you a percentage of your earnings in the event 14.

5 Disability Insurance you need a medical leave of absence from work. Flexible Spending With the Healthcare FSA, Dependent Care FSA, and/or Commuter 15. Accounts (FSAs) Plan, you can save money on expenses using pre-tax dollars. Upon hire, you are automatically enrolled in the 401K Plan. If you choose not to participate, you can enroll anytime to begin saving 401(k) Retirement Plan 16. money for your retirement. Akorn also provides a generous employer matching contribution. Employee Assistance No enrollment necessary for this Company-paid and fully confidential 17. Program (EAP) resource for helping you manage personal issues. Personal Services You have a variety of resources offered to you free of charge to assist 17. through Unum you with everyday life; Financial, Legal, Travel and more.

6 Apply for additional term life and AD&D insurance for you and your Voluntary Life and eligible dependents through the Voluntary Life and AD&D Insurance 18. AD&D Insurance Plan. This plan is available to all employees and their dependents. If you Aflac Group Accident elect the Accountable Care medical plan, Akorn automatically pays 19. Insurance Employee Only accident coverage through Aflac. You can purchase pet insurance for your dog, cat, bird, and/or exotics Pet Insurance 19. through payroll deductions at discounted group rates. Employee Stock Purchase Plan, Education Assistance Program, Other Benefits and Adoption Assistance Program, Paid Time Off, Contribution Rates, 20-23. Information Contact Information, and Company Paid Holidays. 3. Who Is Eligible?

7 You may participate in the group benefit plans if you are an eligible full-time Employee working a minimum of 30 hours or more a week. If you enroll, you may also enroll your eligible spouse and children. Eligible dependents include: Your legal spouse Your children up to age 26, including your natural born children, stepchildren, any children who are under your legal guardianship, who are in your custody under an interim court order of adoption, or who are placed with you for adoption Your children, of any age, who are physically or mentally disabled and incapable of supporting themselves, and can be claimed as a dependent on your federal income tax return When to Enroll Hourly employees will become eligible for Benefits on the 1st of the month following their 60 day waiting period.

8 Salary employees will become eligible 1st of the month following date of hire. Turn your enrollment forms to your local Human Resources department 30 days before your effective date to ensure you receive your ID cards by your effective date. ( Employee can only enroll on-line at ADP there is no enrollment form). How to Enroll As a new hire, please make sure your Human Resources Department provides you with your registration code. Once you have your code, you are ready to begin. Click First Time Users Register Here. Click the Register Now button. There are 5 steps: Step 1: Enter the registration passcode that identifies you as one of our employees. Step 2: Enter your personal information to identify you as a valid user. Step 3: Enter your contact information, including your email address.

9 Step 4: This is where you will create your User ID and password so you can securely log on. Only you can see your information with this password, so it is important to keep your password in a secure place. Step 5: You will be prompted for security questions that will be used if you forget your password. This will save you from contacting Human Resources to reset your password. Log on to ADP's portal at to elect your Benefits . You will need to confirm your personal information (such as address and phone number) and your dependents information including their social security numbers. Once you have made your elections, you will not be able to change them until the next open enrollment period or unless you have a qualifying event. 4. Changing Elections/Adding Dependents after You Enroll After your initial elections, you will not be able to change your benefit elections until the next open enrollment period unless you have a qualifying change in family status.

10 These include the following: Your marriage, divorce or legal separation The birth, adoption or placement for adoption of a child Your child becomes eligible or ineligible for coverage Death of a dependent A court issued Qualified Medical Child Support Order (QMCSO) requiring the plan to provide medical coverage The gain or loss of coverage Involuntarily losing previously held health insurance coverage You must make any changes to your benefit elections or add dependents after a qualifying change in status within 31 days of the event. The change must be consistent with the status change. For example, if you have a baby, you can add the baby as a dependent, but you could not drop coverage for your spouse. Working Spouse Surcharge If your spouse has access to medical coverage through their employer and you choose to cover them under an Akorn medical plan, you will need to pay a surcharge of $100 per month.