<SEC-DOCUMENT>0001683168-20-001948.txt : 20200615
<SEC-HEADER>0001683168-20-001948.hdr.sgml : 20200615
<ACCEPTANCE-DATETIME>20200615061512
ACCESSION NUMBER:		0001683168-20-001948
CONFORMED SUBMISSION TYPE:	10-K/A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20191231
FILED AS OF DATE:		20200615
DATE AS OF CHANGE:		20200615

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Lifeway Foods, Inc.
		CENTRAL INDEX KEY:			0000814586
		STANDARD INDUSTRIAL CLASSIFICATION:	DAIRY PRODUCTS [2020]
		IRS NUMBER:				363442829
		STATE OF INCORPORATION:			IL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17363
		FILM NUMBER:		20961851

	BUSINESS ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053
		BUSINESS PHONE:		847-967-1010

	MAIL ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LIFEWAY FOODS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K/A
<SEQUENCE>1
<FILENAME>lifeway_10ka1-123119.htm
<DESCRIPTION>AMENDED ANNUAL REPORT
<TEXT>
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<P STYLE="margin: 0"><FONT STYLE="font-size: 7pt"><A HREF="#a_001">Table of Contents</A></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B> Form 10-K/A </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Amendment No. 1</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OF THE SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">For the fiscal year ended December 31, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Commission file number: 000-17363</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LIFEWAY FOODS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>(Name of registrant as specified in its
charter)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Illinois</B></FONT></TD>
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>36-3442829</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>(State or other jurisdiction of</I></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>(IRS Employer</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>incorporation or organization)</I></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Identification No.)</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>6431 West Oakton St., Morton Grove, Illinois
60053</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>(Address of principal executive offices)
(Zip Code)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(847) 967-1010</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>(Registrant&rsquo;s telephone number,
including area code)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities registered under Section 12(b)
of the Exchange Act:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; width: 33%"><B>Title of Each Class</B></TD>
    <TD STYLE="width: 34%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Trading
    Symbol</B></FONT></TD>
    <TD STYLE="width: 33%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name
    of each exchange on which registered</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">Common Stock, No Par Value</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LWAY</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nasdaq Global Market</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities registered under Section 12(g)
of the Exchange Act:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>None</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes </FONT><FONT STYLE="font-family: Wingdings">o
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">No </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes </FONT><FONT STYLE="font-family: Wingdings">o
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">No </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&thorn;
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">No </FONT><FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T(&sect; 232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit such files). Yes&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">No
</FONT><FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of &ldquo;large accelerated filer&rdquo;, &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting company&rdquo; and &ldquo;emerging
growth company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt"></FONT><FONT STYLE="font: 10pt Wingdings">o</FONT></TD>
    <TD STYLE="width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&thorn;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes </FONT><FONT STYLE="font-family: Wingdings">o
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">No </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at
which the stock was last sold as of June 30, 2019 ($3.64 per share as quoted on the Nasdaq Global Market) was $15,486,977.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> As of <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May
31, 2020, 15,559,303 shares of the registrant&rsquo;s common stock, no par value, were outstanding</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_001"></A>Table of Contents</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD COLSPAN="2"><A HREF="#a_029"> EXPLANATORY NOTE </A></TD>
    <TD STYLE="text-align: center"> 1 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 80%">&nbsp;</TD>
    <TD STYLE="width: 10%"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#a_018">PART III</A></B></FONT></TD>
    <TD STYLE="text-align: center"> 2 </TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 10.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_019">Directors, Executive Officers and Corporate Governance</A></FONT></TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 11.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_020">Executive Compensation</A></FONT></TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8</FONT> </TD></TR>
<TR STYLE="background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 12.</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_021">Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">29</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 13.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_022">Certain Relationships and Related Transactions and Director Independence</A></FONT></TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 14.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_023">Principal Accountant Fees and Services</A></FONT></TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#a_025">PART IV</A></B></FONT></TD>
    <TD STYLE="text-align: center"> 32 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 15.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_026">Exhibits, Financial Statement Schedules</A></FONT></TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">32</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_028">Signatures</A></FONT></TD>
    <TD STYLE="text-align: center"> 34 </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <A NAME="a_029"></A><B>EXPLANATORY NOTE</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>&nbsp;</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Unless otherwise noted or as the context otherwise requires,
the term &ldquo;the Company,&rdquo; &ldquo;we,&rdquo; &ldquo;us,&rdquo; or &ldquo;our&rdquo; refers to Lifeway Foods, Inc. and
its subsidiaries. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> This Amendment No. 1 to Form 10&ndash;K (this &ldquo;Amendment&rdquo;)
amends the Company&rsquo;s Annual Report on Form 10&ndash;K of for the fiscal year ended December 31, 2019 (the &ldquo;Original
Filing&rdquo;), originally filed with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) on April 14, 2020. We are
filing this Amendment for the purpose of including the information required by Part III (Items 10, 11, 12, 13 and 14) of Form
10-K. The reference on the cover of the Original Filing to the incorporation by reference to portions of our proxy statement for
our 2020 Annual Meeting of Stockholders into Part III of the Original Filing is hereby deleted. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> As required by Rule 12b-15 under the Securities Exchange
Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), this Amendment includes as exhibits the certifications required of our
principal executive officer and principal financial officer under Section 302 of the Sarbanes-Oxley Act of 2002. We have included
Part IV, Item 15 in this Amendment to reflect the filing of these exhibits with this Amendment, to provide identification of management
agreements and to incorporate by reference certain documents previously filed with the SEC. We are not including certifications
under Section 906 of the Sarbanes-Oxley Act of 2002, as no financial statements are being filed with this Amendment. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> The Original Filing continues to speak as of the date of
the Original Filing. Except as described above and except that we have updated the number of outstanding shares of our common
stock on the cover page of this report, this Amendment does not amend or modify any other information set forth in the Original
Form 10-K and we have not updated or modified disclosures included therein to reflect any events which occurred subsequent to
the filing of the Original Filing. Accordingly, this Amendment should be read in conjunction with the Original Form 10-K and with
our other filings made with the SEC subsequent to the filing of the Original Form 10-K. <B>&nbsp;</B> </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>&nbsp;</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_018"></A>PART III</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><A NAME="a_019"></A>ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <B>Information About Our Directors</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="width: 100%; padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ludmila
    Smolyansky, Founder and Chairperson of the Board</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: #E6E4E2">
    <TD STYLE="vertical-align: top; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Age:</B>&nbsp;70 </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Director Since:</B>&nbsp;2002 </P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 66%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Board Leadership Roles:</B> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> &bull;&thinsp;&thinsp;Chairperson
        of the Board </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> LUDMILA SMOLYANSKY
was appointed as a Director by the Board to fill a vacancy created by an increase of the maximum number of Directors up to seven
and unanimously elected as the Chairperson of the Board in November 2002. Mrs. Smolyansky has been the operator of several independent
delicatessen and gourmet food distributorship businesses, and imported food distributorships, and been a leading force in the
health food market for over 40 years. Mrs. Smolyansky and Michael Smolyansky founded Lifeway and Mrs. Smolyansky served as our
General Manager. In 2010, Mrs. Smolyansky retired as a Lifeway employee. She has continued to serve Lifeway as its Chairperson
of the Board and as a full-time consultant since 2011. Mrs. Smolyansky devotes as much time as necessary to Lifeway&rsquo;s business
and currently holds no other directorships in any other reporting company. Mrs. Smolyansky is the mother of Julie Smolyansky (the
President, Chief Executive Officer, and a Director of the Company) and Edward Smolyansky (the Chief Operating Officer and a Director
of the Company). </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
    Attributes, Experience and Skills:</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> Mrs. Smolyansky
brings many years of food industry experience, historical perspective, and operational expertise to the Board. As Chairperson
of the Board, Mrs. Smolyansky guides the Board in analyzing our strategic development. She brings to bear her historical knowledge
of our business and industry to advise the Board on what strategies have been and can be successful and why. Mrs. Smolyansky&rsquo;s
business acumen allows her to lead the Board in long-term strategic planning. Her significant consumer products experience and
international food industry background provide her with a broad understanding of the operational, financial, and strategic issues
facing public companies like ours. In addition, as a founder and pioneer in cultured dairy, Mrs. Smolyansky has been a recognized
leader in the organic and natural products industry for decades. Her in-depth knowledge about Lifeway, other manufacturers, and
distributors and retailers across varying channels of distribution make her well qualified for service on our Board. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="width: 100%; padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Julie
    Smolyansky, Chief Executive Officer, President, Secretary and Director</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: #E6E4E2">
    <TD STYLE="vertical-align: top; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Age:</B>&nbsp;45 </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Director Since:</B>&nbsp;2002 </P></TD>
    <TD STYLE="border-left: white 1pt solid; vertical-align: bottom; width: 1%; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 66%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Board Leadership Roles:</B> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> &bull;&thinsp;&thinsp;None </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> JULIE SMOLYANSKY
was appointed as a Director and elected President and Chief Executive Officer of Lifeway by the Board of Directors to fill the
vacancies in those positions created by the death of her father, Michael Smolyansky, in June 2002. She was appointed as Secretary
effective as of January 1, 2020. She is a graduate with a bachelor&rsquo;s degree from the University of Illinois at Chicago.
Prior to her appointment, Ms. Smolyansky spent six years as Lifeway&rsquo;s Director of Sales and Marketing. Ms. Smolyansky also
served as Lifeway&rsquo;s Chief Financial Officer and Treasurer from 2002 to 2004. Under her leadership, Lifeway has brought its
products into the mainstream, boosted annual revenues tenfold, and expanded distribution throughout the United States, Mexico,
the UK, and Ireland, as well as portions of Central and South America and the Caribbean. She has been named to Fortune Business&rsquo;s
&lsquo;40 under 40,&rsquo; Fortune&rsquo;s 55 Most Influential Women on Twitter and Fast Company&rsquo;s Most Creative People
in Business 1000. She holds no other directorships in any other reporting company. Ms. Smolyansky is the daughter of Ludmila Smolyansky
(the Chairperson of the Board), and brother of Edward Smolyansky (the Chief Operating Officer and a Director of the Company).
Ms. Smolyansky&rsquo;s family maintains a controlling interest in the Company, and the Board believes it is appropriate to provide
for continuity of the representation of the Smolyansky family on the Board as a component of our succession planning strategy. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
    Attributes, Experience and Skills:</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> Ms. Smolyansky
brings to the Board over twenty years of extensive experience in the dairy and consumer packaged goods industries including advertising;
marketing and communications; public relations; digital, social, and event marketing; and consumer insights. Ms. Smolyansky provides
the Board with unique perspectives and invaluable, in-depth knowledge of Lifeway, including strategic growth opportunities; personnel;
relationships with key customers and suppliers; competitive product positioning; history; company culture; and all other aspects
of Lifeway&rsquo;s operations. As the Chief Executive Officer of a publicly traded company, Ms. Smolyansky brings experience working
with the investor community and financial institutions. In addition, as a member of our founding family, Ms. Smolyansky is a recognized
and prominent visionary and leader in the dairy and probiotic products industry with an in-depth knowledge of manufacturers, distributors,
and retailers across all of our channels of distribution. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="width: 100%; padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Edward
    Smolyansky, Chief Operating Officer</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: #E6E4E2">
    <TD STYLE="vertical-align: top; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Age:</B>&nbsp;40 </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Director Since:</B>&nbsp;2017 </P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 66%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Board Leadership Roles:</B> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> &bull;&thinsp;&thinsp;
        None </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> EDWARD SMOLYANSKY
was elected as a Director in June 2017 and is Lifeway&rsquo;s Chief Operating Officer. Mr. Smolyansky was appointed as Chief Financial
and Accounting Officer and Treasurer of Lifeway in November 2004 and appointed as the Chief Operating Officer and Secretary in
2012. He resigned his titles as Chief Financial Officer on January 1, 2016 and as Chief Accounting Officer on August 8, 2016.
Mr. Smolyansky retained his title of Chief Operating Officer when the Board appointed Mr. Hanson as Treasurer and Mr. Haas as
Secretary on October 4, 2019. He also served as Lifeway&rsquo;s Controller from June 2002 until 2004. He received his bachelor&rsquo;s
degree in finance from Loyola University of Chicago in December 2001. He holds no other directorships in any other reporting company.
Mr. Smolyansky is the brother of President, CEO and Secretary, Julie Smolyansky, and the son of Lifeway&rsquo;s Chairperson of
the Board, Ludmila Smolyansky. Mr. Smolyansky&rsquo;s family maintains a controlling interest in the Company, and the Board believes
it is appropriate to provide for continuity of the representation of the Smolyansky family on the Board as a component of our
succession planning strategy. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
    Attributes, Experience and Skills:</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> Mr. Smolyansky
brings to the Board over fifteen years of extensive financial and operations experience in the dairy and consumer packaged goods
industries, which makes him a valuable contributor to the Board. Under his operational leadership, Lifeway has successfully integrated
several strategic acquisitions and successfully led the development of both manufacturing processes and products. Mr. Smolyansky
provides the Board with unique perspectives and invaluable, in-depth knowledge of Lifeway, including strategic growth opportunities;
personnel; relationships with key customers and suppliers; brand marketing; operations; mergers, acquisitions and divestitures;
competitive product positioning; history; company culture; and all other aspects of Lifeway&rsquo;s operations. As the Chief Operating
Officer and former Chief Financial Officer of a publicly traded company, Mr. Smolyansky brings experience working with the investor
community and financial institutions. In addition, as a member of our founding family, Mr. Smolyansky is a recognized leader in
the dairy and probiotic products industry with an in-depth knowledge of manufacturers, distributors, and retailers across all
our channels of distribution. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="width: 100%; padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pol
    Sikar, Director</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: #E6E4E2">
    <TD STYLE="vertical-align: top; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Age:</B>&nbsp;72 </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Director Since:</B>&nbsp;1986 </P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 66%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Board Leadership Roles:</B> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt; text-indent: -12.25pt"> &bull;&thinsp;&thinsp;Independent
        Director </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> &bull;&thinsp;&thinsp;Member,
        Audit and Corporate Governance Committee </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> POL SIKAR has served as a Lifeway director
since our inception in February 1986. He holds a master&rsquo;s degree from the Odessa State Institute of Civil Engineering in
Russia. For more than 40 years, he has been President and a major shareholder of Montrose Glass &amp; Mirror Co., a company providing
glass and mirror products to the wholesale and retail trade in the greater Chicago area. Mr. Sikar devotes as much time as necessary
to the business of the Company and currently holds no other directorships in any other reporting company. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
    Attributes, Experience and Skills:</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> Mr. Sikar
brings a historical perspective to the Board along with executive and entrepreneurial experiences that provide Lifeway with insights
into operational and strategic planning, and financial matters. His longtime service and institutional knowledge about Lifeway
provide him with a broad understanding of the operational, financial, and strategic issues facing public companies like ours.
His executive, operational, and financial experience make him well qualified for service on our Board. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="width: 100%; padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Renzo
    Bernardi, Director</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: #E6E4E2">
    <TD STYLE="vertical-align: top; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Age:</B>&nbsp;82 </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Director Since:</B>&nbsp;1994 </P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 66%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Board Leadership Roles:</B> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> &bull;&thinsp;&thinsp;Independent
        Director </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> RENZO BERNARDI was elected as a director
of Lifeway in 1994. Mr. Bernardi is the President and founder of Renzo &amp; Sons, Inc., a dairy and food service company which
has been in business since 1969 (formerly, Renzo-Milk Distribution Systems). He has nearly 50 years of experience in the dairy
distribution industry. Mr. Bernardi is a graduate of Instituto Tecnico E Commerciale of Macomer, Sardinia. Mr. Bernardi devotes
as much time as necessary to the business of the Company and currently holds no other directorships in any other reporting company. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
    Attributes, Experience and Skills:</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> Mr. Bernardi
brings nearly half a century of experience in the dairy industry, with a focus on dairy supply and distribution, along with historical
perspective and executive and entrepreneurial experiences to the Board. His background provides Lifeway with insights into operational
and strategic planning, and financial matters. His longtime service and institutional knowledge about Lifeway provide him with
a broad understanding of the operational, financial, and strategic issues facing public companies like ours. His executive, operational,
and financial experience, particularly in the dairy industry, make him well qualified for service on our Board. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="width: 100%; padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Jason
    Scher, Director</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: #E6E4E2">
    <TD STYLE="vertical-align: top; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Age:</B>&nbsp;45 </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Director Since:</B>&nbsp;2012 </P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 66%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="color: Black"><B>Board Leadership Roles:</B></FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt; text-indent: -12.25pt"> <FONT STYLE="color: Black">&bull;&thinsp;&thinsp;
        Lead Independent Director</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> <FONT STYLE="color: Black">&bull;&thinsp;&thinsp;
        Chairperson, Audit and Corporate Governance Committee</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> <FONT STYLE="color: Black">&bull;&thinsp;&thinsp;
        Audit Committee Financial Expert</FONT> </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> JASON SCHER
was elected as a Director of the Company to fill a vacancy on the Board of Directors in July 2012. From 2016 to present Mr. Scher
has been a principle investor and advisor focused on early-stage companies. From 2004 until 2016, Mr. Scher was the Chief Operating
Officer of Vosges Haut-Chocolat, a leading manufacturer of super premium chocolate and confections in the US. From 2006 to 2018
he was a Managing Member of South Shore Developers Group, a real estate development company focused on affordable housing in the
Chicago Area. From 2000 to 2004, Mr. Scher was a principal in RP3 Development, a New York based construction management and development
company that performed work nationwide. Prior to that, Mr. Scher was employed by COSI Sandwich Bar in their real estate and construction
group. Mr. Scher devotes as much time as necessary to the business of the Company and currently holds no other directorships in
any other reporting company. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
    Attributes, Experience and Skills:</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> Mr. Scher
brings manufacturing, financial and strategic experience to the Board, including a record of operational excellence in the food
industry, and strategic experience across multiple industries from real estate to retail to the Board. In addition, he has advised
a private company board; been an operational, team, and project leader; and served as a senior executive for nearly twenty years.
His experience has provided him with a broad understanding of the operational, financial, and strategic issues facing public companies
like ours. His industry, operational, and financial experience makes him well qualified for service on our Board. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="width: 100%; padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Jody
    Levy, Director</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: #E6E4E2">
    <TD STYLE="vertical-align: top; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Age:</B>&nbsp;41 </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt"> <B>Director Since:</B>&nbsp;2018 </P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 66%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Board Leadership Roles:</B> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> &bull;&thinsp;&thinsp;Independent
        Director </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-indent: -12pt"> &bull;&thinsp;&thinsp;Member,
        Audit and Corporate Governance Committee </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Jody Levy was appointed as a director
of Lifeway to fill a vacancy on the Board on February 11, 2020. Ms. Levy, is the founder, Creative Director and Chief Executive
Officer of World Waters, LLC, the parent company of WTRMLN WTR and also a partner in, and advisor to, various brands including
GEM&amp;BOLT Mezcal, Bulletproof, Thrive Market, Parsley Health, The WELL, Inscape, Pinata and more. Ms. Levy has a Bachelor of
Arts from School of the Art Institute of Chicago. Ms. Levy devotes as much time as necessary to Lifeway business and currently
holds no other directorships in any other reporting company. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
    Attributes, Experience and Skills:</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> Ms. Levy&rsquo;s
breadth of experience in manufacture, marketing and sale of consumer packaged goods, specifically health foods, and her financial
expertise and business experience as investor and as Chief Financial Officer make her a valuable addition to our Board. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <B>Information About Our Executive
Officers</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <B>&nbsp;</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <B>Information About Our Executive
Team</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Lifeway&rsquo;s executive officers
are Ms. Julie Smolyansky, President, Chief Executive Officer and Secretary; Mr. Edward Smolyansky, Chief Operating Officer; Mr.
Eric Hanson, Chief Financial and Accounting Officer and Treasurer; and Ms. Amy Feldman, Senior Executive Vice President of Sales.
Douglas A. Hass was the General Counsel and Assistant Secretary through December 31, 2019. Mr. Hass is a Named Executive Officer
for fiscal year 2019 but his position of General Counsel was eliminated as part of Lifeway&rsquo;s ongoing organizational restructuring
effective December 31, 2019. Mr. Hass also resigned as Secretary of the Company, and his employment agreement was terminated,
effective December 31, 2019. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Ms. Smolyansky and Mr. Smolyansky are
also Directors, and we have included their biographical information above in the section &ldquo;Information about our Directors.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> All of our Executive Officers other
than Mr. Smolyansky have or had employment agreements that we have more fully describe below under &ldquo;Employment agreements
and change-in-control arrangements between the Company and Named Executive Officers.&rdquo; Our other Named Executive Officer,
Mr. Smolyansky, does not have an employment agreement. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Eric
    Hanson, Chief Financial and Accounting Officer</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 20%; background-color: #E6E4E2; padding-left: 3.95pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age:</B>&nbsp;46</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; background-color: #E6E4E2; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 39%; background-color: #E6E4E2; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Officer
    Since: </B>2018</FONT> </TD>
    <TD STYLE="vertical-align: top; width: 1%; background-color: transparent; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 39%; background-color: #E6E4E2; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NEO:
    </B>No</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> ERIC HANSON is our Chief Financial
and Accounting Officer and Treasurer. Mr. Hanson has served as our Chief Accounting Officer since May 2018, and as our Corporate
Controller since July 2016. He also served as our interim Chief Financial Officer from May 2018 through August 2018 before we
permanently appointed him to that position in November 2018. Prior to joining Lifeway, he served as Director of External Reporting
for CPG International LLC in Skokie, Illinois from 2014 through July 2016; and as Audit Manager for Deloitte &amp; Touche, LLP
in Chicago, Illinois from 2012 through 2014. He also held various senior financial positions with Crowe Horwath from 2003 through
2012 and has over 20 years of financial reporting experience. Mr. Hanson holds a Bachelor of Science in Finance from the University
of Illinois. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #E6E4E2">
    <TD STYLE="padding-left: 3pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amy
    Feldman, Senior Executive Vice President of Sales</B></FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 20%; background-color: #E6E4E2; padding-left: 3.95pt; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age:</B>&nbsp;43</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-left: white 1pt solid; background-color: #E6E4E2; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 39%; background-color: #E6E4E2; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Officer
    Since: </B>2018</FONT> </TD>
    <TD STYLE="vertical-align: top; width: 1%; background-color: transparent; font-size: 10pt"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 39%; background-color: #E6E4E2; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NEO:
    </B>No</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> AMY FELDMAN
is our Senior Executive Vice President of Sales. Amy previously held the top sales executive position for Lifeway Foods from 2009
through 2011. She returned to Lifeway effective October 31, 2018. Ms. Feldman has spent over 20 years in the food industry building
business, brands, and teams, specifically within the fresh and natural foods arena. From 2017-2018, she served as the Executive
Vice President of Sales at Next Phase Enterprises, a club and mass channel food sales firm. From 2015 through 2017, Ms. Feldman
was Vice President of Sales, Channel Development for Mondelez International&rsquo;s Enjoy Life Foods subsidiary where she was
responsible for developing strategy and introducing the brand through various trade channels such as foodservice, e-commerce,
small format, and international. Prior to joining Enjoy Life, she was the Vice President of Sales, Independent Grocery Channel
for Chicago-based KeHE Distributors from 2011-2015. Amy began her career at Sara Lee and holds a Bachelor in Business Administration
in Food Marketing from Western Michigan University, an MBA from Golden Gate University, and a Culinary Certificate from Kendall
College. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <B>Corporate Governance Guidelines
and Code of Ethics</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <B>&nbsp;</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> We have adopted Corporate Governance
Guidelines and a Code of Ethics applicable to all members of the Board, executive officers, and employees, including our principal
executive officer and principal financial officer. The Corporate Governance Guidelines, the Code of Ethics, and other corporate
governance documents are available on Lifeway&rsquo;s website at www.lifewayfoods.com. Any person may, without charge, request
a copy of the Corporate Governance Guidelines and/or Code of Ethics by contacting Lifeway at (847) 967-1010 or by email at <U>info@lifeway.net.</U> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <B>Delinquent Section 16(a) Reports</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Section 16(a) of the Exchange Act requires
our directors, executive officers, and persons who beneficially own more than 10% of its Common Stock to file reports of ownership
and changes in ownership with the SEC and to furnish us with copies of all such reports they file. Based on our review of the
copies of such forms that we received, or written representations from certain reporting persons, we believe that none of our
directors, executive officers, or persons who beneficially own more than 10% of Lifeway&rsquo;s Common Stock failed to comply
with Section 16(a) reporting requirements in the fiscal year ended December 31, 2019. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Director Nominations by Shareholders</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Consistent with the Board&rsquo;s Corporate
Governance Guidelines, the Board will consider any candidates recommended by shareholders on the same basis that it considers
recommendations from other sources. The recommendation must at a minimum include evidence of the shareholder&rsquo;s ownership
of Lifeway stock, along with the candidate&rsquo;s name and qualifications for service as a Board member, and a document signed
by the candidate indicating the candidate&rsquo;s willingness to serve, if elected. In considering a candidate submitted by shareholders,
the Board will take into consideration the needs of the Board and the qualifications of the candidate. Nevertheless, just as with
recommendations from other sources, the Board may choose not to consider an unsolicited recommendation if no vacancy exists on
the Board and/or the Board does not perceive a need to increase number of directors on the Board. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> In order for any shareholder proposal
submitted pursuant to Rule 14a-8 promulgated under the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;),
to be included in our Proxy Statement to be issued in connection with the 2020 Annual Meeting of Shareholders, including a recommendation
by a shareholder of a candidate for nomination to our Board, we must receive such shareholder proposals no later than July 31,
2020. Any such shareholder proposal submitted, including any accompanying supporting statement, may not exceed 500 words, per
Rule 14a-8(d) of the Exchange Act. All shareholder proposals must be made in writing and addressed to Lifeway&rsquo;s Secretary,
c/o Lifeway Foods, 6430 W. Oakton Street, Morton Grove, IL 60053. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Audit Committee</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>&nbsp;</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Controlled Company Exemption</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Because Ludmila Smolyansky, Julie Smolyansky,
and Edward Smolyansky, acting as a group, (the &ldquo;Smolyansky family&rdquo;) beneficially own a majority of Lifeway&rsquo;s
outstanding Common Stock, we qualify as a &ldquo;controlled company&rdquo; pursuant to Nasdaq Listing Rule 5615. We believe that
having the Smolyansky family as a significant part of a long-term-focused, committed, and engaged stockholder base provides us
with an important strategic advantage, particularly in a business with a mature, well-recognized brand. We desire to remain independent
and family-controlled, and we believe the Smolyansky family shares these interests. As a controlled company, we are exempt from
the requirements to have separate, independent compensation and nominating committees; a majority of independent directors on
our Board; or independent directors comprising a majority of the Board select nominees for director or determine the compensation
of its officers. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> As a result of our use of the controlled
company exemption, our corporate governance practices differ from those of non-controlled companies, which are subject to all
of the Nasdaq corporate governance requirements. Specifically, while we continue to maintain a majority of independent directors
on the Board and to ensure that a committee of those independent directors select director nominees and determine the compensation
of our officers, we have not, in the past, maintained separate compensation or nominating committees. In May, 2020, the Board
of Directors formed a Compensation Committee and adopted a Compensation Committee Charter. Mr. Scher and Ms. Levy were appointed
as members of the newly constituted Compensation Committee. In the event we cease to be a controlled company, we will be required
to comply with all of the corporate governance standards under Nasdaq&rsquo;s rules, subject to applicable transition periods. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Audit and Corporate Governance Committee</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> To eliminate unnecessary redundancies
in our independent committee structure given the size of our company and Board, and in reliance on the controlled company exemptions
described above, we have chosen to combine our audit and nominating committees into an Audit and Corporate Governance Committee.
The Audit and Corporate Governance Committee, which is a separate and independent committee comprised of a majority of the Board&rsquo;s
independent directors, fulfills the Board&rsquo;s delegated audit and nominating duties as a single, integrated committee. The
Audit and Corporate Governance Committee also fulfilled the function of a Compensation Committee until May 2020 when the Board
of Directors formed a Compensation Committee. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> The Board has determined that each
member of the Audit and Corporate Governance Committee (1) is &ldquo;independent&rdquo; as defined by applicable SEC rules and
the listing standards of Nasdaq, (2) has not participated in the preparation of our financial statements or those of any of our
current subsidiaries at any time during the past three years, and (3) is able to read and understand fundamental financial statements,
including a balance sheet, income statement, and cash flow statement. In addition, the Board determined that Mr. Scher was financially
literate and financially sophisticated, as those terms are defined under the rules of Nasdaq, and were &ldquo;audit committee
financial experts,&rdquo; as defined by applicable SEC rules. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><A NAME="a_020"></A>ITEM 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Compensation Discussion
and Analysis</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Although
SEC rules do not require smaller reporting companies to include a Compensation Discussion and Analysis (&ldquo;CD&amp;A&rdquo;)
in their Form 10-K, Lifeway has elected to voluntarily disclose this additional information in order to provide stockholders with
additional information regarding current executive compensation.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">This
CD&amp;A explains our overall compensation philosophy, describes the material components of our executive compensation programs,
and details the determinations made by the Board and our Audit and Corporate Governance Committee in fiscal 2019 for the compensation
awarded to Named Executive Officers (NEOs). Our current executive officers, including our NEOs, are:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 20%; border-bottom: black 1.5pt solid; text-indent: 5.3pt"> <FONT STYLE="font-size: 10pt"><B>Name</B></FONT> </TD>
    <TD STYLE="width: 10%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Age</B></FONT> </TD>
    <TD STYLE="width: 10%; border-bottom: black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Officer<BR>
                                         since</B></FONT> </P></TD>
    <TD STYLE="width: 40%; border-bottom: black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Title</B></FONT> </P></TD>
    <TD STYLE="width: 20%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Named Executive Officer</B></FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Julie Smolyansky</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">45</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">2002</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Chief Executive Officer, President and Secretary</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Yes</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Edward Smolyansky</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">40</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">2004</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Chief Operating Officer</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Yes</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Douglas A. Hass</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">44</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">2016</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Former General Counsel and Assistant Secretary</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">Yes</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Eric Hanson</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">46</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">2018</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Chief Financial and Accounting Officer and Treasurer</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">No</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Amy Feldman</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">43</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">2018</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Senior Executive Vice President of Sales </FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 10pt">No</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Mr. Hass
is an NEO for fiscal year 2019 but his position of General Counsel was eliminated as part of Lifeway&rsquo;s ongoing organizational
restructuring effective December 31, 2019. Mr. Hass also resigned as Secretary of the Company, and his employment agreement was
terminated, effective December 31, 2019.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The tables
that follow this Compensation Discussion and Analysis contain specific data about the compensation earned in 2019 by our NEOs.
The discussion below is intended to help readers understand the detailed information provided in the compensation tables and put
that information into the context of our overall executive compensation program.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt"><B>Executive Compensation
Philosophy</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Our executive compensation
program is based on the following objectives:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Balancing compensation program elements and levels that attract,
    motivate, and retain talented executives with forms of compensation that are performance-based and/or aligned with shareholder
    interests and the promotion of growth in Lifeway business and value;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Setting target total direct compensation (base salary, annual
    incentives, and long-term incentives) and related performance requirements for executives by reference to compensation ranges
    for companies that compete with Lifeway for executive talent, business, and capital, all within the context of an organization
    that has the dual mandate of maintaining efficient and profitable operations while seeking further growth and expansion; and</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 3%"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="width: 94%; text-align: justify"> <FONT STYLE="font-size: 10pt">Appropriately adjusting total direct compensation
    to reflect the performance of each executive over time (as reflected in individual annual goals), as well as our annual performance
    (as reflected in the various corporate financial performance goals authorized under the Lifeway Foods, Inc. 2015 Omnibus Incentive
    Plan (the &ldquo;Omnibus Plan&rdquo;)), and our long-term performance (as reflected in stock appreciation for equity-based
    awards under the Omnibus Plan).</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Board
of Directors recognizes that Lifeway&rsquo;s continued success and growth are a result of the efforts, skill and experience of
our management team, including its executive officers; the experience, knowledge and guidance of the Chairperson of the Board
and Lead Independent Director; and the oversight of the Board of Directors.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Continuity
of personnel across multi-disciplinary functions is critical to the success and continued growth of our business. Furthermore,
since we have relatively few employees, each must perform a broad scope of functions, and there is comparatively less redundancy
in skills than at companies larger than Lifeway. Our unique production process for kefir, which is not widely known, requires
specific knowledge and skills to perform and to support. This, coupled with the multiple functions that our executives perform,
may make it difficult to attract and retain talented executives. We consider our specific challenges and achievements along with
our financial performance and growth when approving executive officer compensation.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In 2019,
the Audit and Corporate Governance Committee was responsible for performing the functions of a compensation committee of the Board.
Pursuant to the powers granted in its charter, the Audit and Corporate Governance Committee adopted a compensation philosophy
that recognizes Lifeway&rsquo;s near-term successes, as well as decision-making that supports our long-term growth. For these
reasons, the Audit and Corporate Governance Committee has designed a compensation plan that incentivizes both near-term and long-term
objectives with both annual and long-term incentive awards. We also believe that a significant portion of our executive compensation
should be dependent on the continued growth and success of our Company so that our executive officers have even stronger motivation
to work toward the long-term interests of our shareholders. Accordingly, the Audit and Corporate Governance Committee designated
a portion of executive compensation to be &ldquo;at risk&rdquo; and therefore dependent on achieving performance goals and
comprised mostly of equity compensation that will appreciate only to the extent that shares held by our shareholders also appreciate.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In May
2020, the Board of Directors formed a Compensation Committee to perform the functions related to compensation formerly performed
by the Audit and Corporate Governance Committee and adopted a Compensation Committee Charter. Mr. Scher and Ms. Levy were appointed
as members of the newly constituted Compensation Committee.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Audit
and Corporate Governance Committee reviewed, and going forward our Compensation Committee will review, our compensation design
and philosophy on an annual basis to ensure that our executive compensation program continues to support our strategy and objectives,
and to align with our shareholders&rsquo; interests.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Compensation Oversight
Role of the Audit and Corporate Governance Committee and Compensation Committee</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Our Audit
and Corporate Governance Committee assisted our Board of Directors in 2019 and through May 2020 by discharging responsibilities
relating to the compensation of our executive officers, including our NEOs. As such, the Audit and Corporate Governance Committee
had responsibility over certain matters relating to the reasonable and competitive compensation of our executives, employees,
and directors (only non-employee directors are compensated as directors) as well as matters relating to equity-based benefit plans.
Each member of our Audit and Corporate Governance Committee was, and each member of our newly formed Compensation Committee is,
independent in accordance with the criteria of independence set forth in Rule 5605(a)(2) of the Nasdaq Listing Rules. We believe
that their independence from management allowed the members of the Audit and Corporate Governance Committee, and will allow the
Compensation Committee, to provide unbiased consideration of various elements that could be included in an executive compensation
program and apply independent judgment about which elements best achieve our compensation objectives.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Pursuant to its charter, the
Audit and Corporate Governance Committee was responsible for, among other things:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Reviewing Lifeway&rsquo;s overall compensation philosophy and strategy;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt 0pt 36.1pt"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Evaluating and setting, in conjunction with management and
    the Committee&rsquo;s independent compensation consultant, the compensation of executive officers;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Reviewing and approving the proxy statement, including the
    Compensation Discussion and Analysis (when it is required or included);</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Evaluating and approving the components and amounts of compensation
    of Lifeway&rsquo;s senior management employees;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Evaluating, considering and approving, in its discretion,
    grants and awards made under Lifeway&rsquo;s equity-based compensation plans, if any, subject to any limitations prescribed
    or authority delegated by the Board to the Committee or any subcommittee;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Evaluating, considering and approving, in its discretion,
    compensation for non-employee members of the Board of Directors; and</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Managing and controlling the operation and administration of Lifeway&rsquo;s equity incentive
    plans.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"> <FONT STYLE="font-size: 10pt">The
Audit and Corporate Governance Committee was, and the Compensation Committee is, authorized to retain and terminate, without Board
or management approval, the services of an independent compensation consultant to provide advice and assistance. The Audit and
Corporate Governance Committee had, and the Compensation Committee has, the sole authority to approve the consultant&rsquo;s fees
and other retention terms. It reviews the independence of the consultant and any other services that the consultant or the consultant&rsquo;s
firm may provide to the company. The Chairperson of the Audit and Corporate Governance Committee (our Lead Independent Director)
reviews, negotiates and executes an engagement letter with the compensation consultant. The Chairperson of the Compensation Committee
will fulfill that role going forward. The compensation consultant reported directly to the Audit and Corporate Governance Committee
and will report directly to the Compensation Committee going forward.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Role of our Compensation
Consultant</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In 2019,
the Audit and Corporate Governance Committee engaged the Lockton Companies (&ldquo;Lockton&rdquo;) as its independent compensation
consultant to advise it on executive officer, senior management and director compensation matters. As part of its engagement in
2019, the Audit and Corporate Governance Committee directed Lockton to work with our General Counsel, our Human Resources department,
and other members of management to obtain information necessary for Lockton to evaluate compensation of executive officers, senior
management and directors.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Lockton
reported directly to the Audit and Corporate Governance Committee, which had the sole power to terminate or replace Lockton. Lockton
met with both the Audit and Corporate Governance Committee and, as necessary, the Board during their regular meetings and in executive
session (where no members of management are present), and with the independent members of the Board outside of the Board&rsquo;s
regular meetings.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">During
2019, Lockton performed no other services for Lifeway. The Audit and Corporate Governance Committee believed that there was no
conflict of interest based on any prior relationship with Lockton. In reaching this conclusion, the Audit and Corporate Governance
Committee considered the factors set forth in the SEC and Nasdaq rules regarding compensation advisor independence.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Audit
and Corporate Governance Committee tasked Lockton with developing a compensation strategy for 2020 built on Lockton&rsquo;s and
the Audit and Corporate Governance Committee&rsquo;s prior work and reflects the compensation philosophy described above. Previously,
in 2018, Lockton reviewed our comparative peer group and suggested several refinements to it, which the Audit and Corporate Governance
Committee approved. Lockton selected companies primarily focused on food/beverage manufacturing or agribusiness based on net sales,
market capitalization, recent and anticipated growth, and similarity of management structure.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Using
the refined peer group, Lockton analyzed the peer group&rsquo;s comparative total direct compensation practices and mix of pay
against Lifeway&rsquo;s executive officer total direct compensation practices generally, as well as for fiscal year 2019 and proposed
recommendations regarding the amount and mix of base and incentive compensation to be delivered to our executive officers, senior
management team and directors for fiscal year 2020.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Lockton&rsquo;s
engagement was terminated in the first quarter of 2020. The newly formed Compensation Committee is undergoing a process to identify
and engage a new independent compensation consultant to assist in a review of the compensation philosophy described above and
the compensation strategies, structures and amounts for 2020 and to propose changes it determines to be beneficial to the goals
of the Company as well as developing a compensation strategy for 2021 and beyond.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt"><B>The Audit and Corporate
Governance Committee&rsquo;s Compensation Program Design</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt"><B>Elements of Compensation</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">To
achieve the compensation objectives described in our philosophy above, we have established three principal components of
executive compensation: long-term equity compensation, an annual cash incentive, and base salary. The Committee seeks to
ensure that total compensation for our executive officers is heavily weighted to variable, performance-based compensation by
delivering a portion of target compensation in the form of long-term equity compensation and annual cash
incentives.</FONT> </P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Committee
chose a mix of equity and cash compensation vehicles based on financial and operational targets that it believes correlate with
operating performance and long-term stock performance. Our executive officers were also eligible to participate in our benefit
programs and received limited perquisites. The table below provides a summary of these key elements and describes why we include
each one.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 23%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;<B>Element</B></FONT> </TD>
    <TD STYLE="vertical-align: top; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 15%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Form</B></FONT> </TD>
    <TD STYLE="vertical-align: top; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: top; width: 60%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Description</B></FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Base Salary</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Cash (Fixed)</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">The fixed amount of compensation for performing day-to-day
    responsibilities.</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: justify"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Executive
        officers are generally eligible for increases annually, depending on their individual performance.</FONT> </P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The
        fixed amount of compensation provides our executive officers with a degree of retention and stability.</FONT> </P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Long Term Incentive Awards</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Equity (Variable)</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The
        Board and shareholders previously approved the Omnibus Plan on October 30, 2015. Each fiscal year, including fiscal year
        2019, the Committee adopts a formalized performance-based incentive award plan that provided all executive officers and
        certain other senior managers with an opportunity to earn Performance Shares under the Omnibus Plan based on achievement
        of critical financial performance goals that were reviewed and approved by the Audit and Corporate Governance Committee.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt"><I>We
        provide more details on this element below.</I></FONT> </P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Short Term Incentive Awards</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Cash and/or Equity (Variable)</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Provides annual incentive awards for achieving corporate
    goals and objectives.</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: justify"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Generally,
        every employee whose terms and conditions of employment are not governed by a collective bargaining agreement is eligible
        to earn an annual incentive award, promoting alignment and pay-for-performance at all levels of the organization. The
        annual awards can be a combination of:</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incentive
        awards based on pre-established goals established by the Committee.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discretionary
        awards based on a range of factors considered by the Committee.</FONT> </P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In
        each fiscal year, including fiscal year 2019, the Audit and Corporate Governance Committee adopted a formalized performance-based
        cash incentive award plan that provides all executive officers and certain other senior managers with an opportunity to
        earn a bonus for each fiscal year based on achievement of critical individual performance goals that were reviewed and
        approved by the Audit and Corporate Governance Committee. These performance goals can be a combination of both objective
        and subjective measures.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt"><I>We
        provide more details on this element below.</I></FONT> </P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Perquisites and Benefits</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Varies</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Provides perquisites to facilitate the operation of our business
    and assist us in recruiting and retaining key executives.</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: justify"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Perquisites
        have in the past included automobile allowances, 401(k) matching, annual comprehensive health screenings, and other items
        discussed below.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt"><I>We
        provide more details on this element below.</I></FONT> </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Long-Term Incentive Awards
and Determinations</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Executive
officers and other key management employees designated by the Audit and Corporate Governance Committee are eligible to receive
awards of long-term incentive awards in the form of Performance Units under the Omnibus Plan, which will result in grants of Performance
Shares, if Lifeway exceeds specified financial performance criteria set by the Committee. The amount and value of the awards depend
on our performance relative to the performance goals approved by the Committee overseeing compensation at the beginning of the
Performance Period. The 2019 Performance Unit cycle has three-year Performance Periods for all executives.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Under
the Performance Unit program, assuming above-threshold performance, Performance Shares will be granted to the eligible participants,
including executive officers, pursuant to the Omnibus Plan and the terms and conditions of the applicable award agreements.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">One half
of any Performance Unit awards earned by eligible participants will vest, if at all, on the one year anniversary of the grant
if performance measurements are met in the first year; one half of the remaining unvested awards earned will vest on the second
anniversary of the grant if performance measurements were met in the second year, and the remainder of unvested earned shares
will vest on the third anniversary of the grant if performance measurements are met in the third year. If in any year performance
measures are attained but are not maintained in a subsequent year, unvested awards equal to the shortfall in that later year will
be forfeited and will not vest. The Audit and Corporate Governance Committee believes that the long term performance period and
long term vesting feature tied to the performance of the Company provides an important mechanism to incentivize management&rsquo;s
focus on continued profitability and achievement of long term business milestones that will drive Lifeway&rsquo;s long term success
and to align their interests with long-term shareholder value.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Unlike
2018, in the first year of the 2019 Performance Period, Lifeway achieved certain Performance Measures previously approved by the
Board&rsquo;s Audit and Corporate Governance Committee under our 2015 Omnibus Plan for which Ms. Smolyansky and Mr. Smolyansky
earned long-term incentive stock awards subject to Danone&rsquo;s consent as discussed further below. The awards to Ms. Smolyansky
and Mr. Smolyansky for the first year of the 2019 Performance Period are subject to a vesting schedule previously approved by
the Board&rsquo;s Audit and Corporate Governance Committee which provided that 50% of unvested shares vest in year one, 50% of
the remaining unvested shares in year two and the remaining unvested shares vest in year three. Please see the detailed information
presented in the Summary Compensation Table below.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Setting a Target Value
of Performance Units</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">As discussed
above, the Audit and Corporate Governance Committee established a target level of total annual equity compensation for each eligible
participant that will be awarded in Performance Units. If our performance meets one or more of the target performance goals, the
percentage of Performance Units assigned to such milestones will be issued, subject to forfeiture of unvested awards equal to
any shortfall in a milestone in any year after one in which such milestone was met.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "> <FONT STYLE="font-size: 10pt"><B>Performance Measures</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The following
table outlines the performance measures that the Audit and Corporate Governance Committee used in fiscal year 2019. The performance
measures used in fiscal year 2018 were used to measure short term performance in connection with the short term incentive program
discussed below. The Audit and Corporate Governance Committee selected these performance measures because they align with expansion
by increasing revenue and profitability through introduction of new products and growth of existing products and ensuring our
leaders are accountable for driving long term profitability and sustainability of the Company. The Committee believes these measures
are key drivers of our long-term success and shareholder value, and directly affected by the decisions of our management team.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; width: 98%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Performance
    Measures</B></FONT> </TD>
    <TD STYLE="width: 2%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from Plantiful product line </FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from 8 oz product line</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from ProBugs (non-plant based)</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from combination 32 oz and 8 oz kefir </FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The likelihood
of our NEOs and other key employees earning nonequity and equity incentive awards in 2020 is dependent on our 2020 financial results
and whether we meet the goals set by the Compensation Committee. This outcome is dependent on many other factors. As demonstrated
by the incentive payouts for 2018 and 2019, we seek to set target financial and personal goals that maintain a consistent level
of difficulty in achieving the full target bonus from year to year. Therefore, over time we expect our NEOs and other key employees
to achieve bonuses in some years and not achieve bonuses in other years.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Performance Unit Mechanics
and Targets</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">To receive
a Performance Unit, at least one of the minimum performance thresholds must be met by 2021. Each of the performance thresholds
is independent and, if any threshold is met, the award is funded with respect to that performance measure in&nbsp;accordance with
the percentages outlined in the table below. If the performance level for any performance measure is not met, then there is no
funding attributable to that performance measure.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The number
of Performance Units awarded is determined by using the percentage of Performance Award allocated to that particular threshold
as set forth below to determine the amount of Performance Award to be granted, subject to Committee-approved variation due to
material events not contemplated at the time the targets were set (such as major acquisitions) and to the Committee&rsquo;s negative
discretion. The Committee converts Performance Units to shares of common stock (Performance Shares under the Omnibus Plan) by
dividing the number of Performance Units awarded by our stock price on the award date.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The following
chart shows the threshold and percentage of the Performance Award allocated to such measurement:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; width: 46%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Performance
    Measure</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; width: 52%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Percentage
    of Maximum Performance Award</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; width: 2%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from Plantiful product line</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">30%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from 8 oz product line</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">30%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from ProBugs (non plant based)</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">20%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue from 8 oz and 32 oz Kefir products</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">20%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Short-Term Incentive Awards
and Determinations</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Short-Term Incentive Awards</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Executive
officers and other key management employees designated by the Audit and Corporate Governance Committee are eligible to receive
annual cash incentive awards under the Omnibus Plan based on a Performance Period set by the Audit and Corporate Governance Committee.
The 2019 cash incentive award cycles had one-year Performance Periods for all executives.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Audit
and Corporate Governance Committee believes that these short-term incentive payouts for executive officers should be tightly linked
to our performance. When defining short-term performance for the eligible participants, the Audit and Corporate Governance Committee
focused solely on the financial performance metrics described below (net revenue and Adjusted EBITDA). The amount and value of
the 2019 awards depended on our performance relative to the performance goals approved by the Audit and Corporate Governance Committee
at the beginning of the Performance Period.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Under
the Short Term Incentive program, assuming above-minimum threshold performance, cash awards were to be granted to the eligible
participants, including executive officers, pursuant to the Omnibus Plan and the terms and conditions of the applicable award
agreements.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Setting a Target Awards</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">As discussed
above, the Audit and Corporate Governance Committee established a target level of total cash compensation for each eligible participant,
including base salary and a cash award under the Short Term Incentive program. If our performance meets the target performance
goals, the target level Short Term Incentive program cash award will be paid. If our performance exceeds or falls short of the
target performance goals, the amount of cash paid will be increased or decreased formulaically.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Performance Measures</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The following
table outlines the performance measures that the Audit and Corporate Governance Committee used in fiscal year 2019. The Audit
and Corporate Governance Committee selected these performance measures because they align with the long-term goals of creating
sustainable revenue growth and ensuring our leaders are accountable for driving profitability through increasing efficiencies
and investments in future opportunities. The Audit and Corporate Governance Committee believed these measures are key drivers
of our long-term success and shareholder value, and directly affected by the decisions of our management team and allow the relevant
Committee to measure short term Company progress toward the long term goals.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; width: 20%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Performance
    Measure</B></FONT> </TD>
    <TD STYLE="width: 2%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 78%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Definition</B></FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Net revenue</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Total net revenue
        from Lifeway&rsquo;s operations</FONT> </P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Adjusted EBITDA<SUP>(1)</SUP></FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">EBITDA before the impact of stock-based compensation, bad debt expense, reserves for
    inventory obsolescence, gains or losses on sales of property and equipment, and deferred revenue.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">(1) &ldquo;Adjusted
EBITDA&rdquo; is not defined under U.S. generally accepted accounting principles (&ldquo;GAAP&rdquo;) and is not a deemed alternative
to measure performance under GAAP. Adjusted EBITDA is a financial metric that we use for incentive compensation purposes, and
it differs from the financial results we report in our earnings releases. Adjusted EBITDA should not be considered as a substitute
for, or superior to, the measures of financial performance we prepare in accordance with GAAP.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Performance Unit Mechanics
and Targets</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">To have
received a 2019 cash award, at least one of the net revenue or Adjusted EBITDA minimum performance thresholds must have been met.
Each of the minimum performance thresholds for net revenue and Adjusted EBITDA was independent and, if either minimum threshold
was met, the award was funded with respect to that performance measure in&nbsp;accordance with the percentages outlined in the
table below. If the minimum performance level for either performance measure was not met, then there was no funding attributable
to that performance measure.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The amount
of cash awarded was determined by comparing our actual 2019 net revenue and Adjusted EBITDA against the threshold, target, and
maximum performance levels and converting the result into a funding percentage which was applied to the maximum possible award
for each eligible participant.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The following
chart shows the threshold, target and maximum funding levels as well as other levels of funding for eligible employees for the
net revenue and Adjusted EBITDA performance measures in 2019:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 37%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Adjusted
    EBITDA (% of Target) </B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 10%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>80%</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>90%</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 15%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>(Target)
    100%</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 11%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>110%</B></FONT> </TD>
    <TD STYLE="vertical-align: top; width: 19%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>120%
    or More</B></FONT> </TD></TR>
<TR STYLE="background-color: rgb(238,238,238)">
    <TD STYLE="white-space: nowrap; vertical-align: bottom"> <FONT STYLE="font-size: 10pt">Award (% of Target Award)</FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">50%</FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">75%</FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">100%</FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">120%</FONT> </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">150%</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 34%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Net
    Revenue (% of Target) </B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 10%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>95
    %</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 15%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>(Target)
    100%</B></FONT> </TD>
    <TD STYLE="vertical-align: top; width: 41%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>100%
    - 109%</B></FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">Award (% of Target Award)</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-size: 10pt">105%</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-size: 10pt">110%</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">+2% of EBITDA Funded Award for every 1% of net revenue increase over the Target</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>Discretionary
Incentive Awards</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Audit
and Corporate Governance Committee had, and the Compensation Committee has, the discretion to approve individual discretionary
bonus amounts for executive officers and other key management employees based on (i) the designee&rsquo;s individual contributions
to our performance (including their individual performance relative to the factors covered by our Omnibus Plan); (ii) the nature
and extent of our accomplishments; (iii) input from management and the Board; (iv) individual contributions, roles, and responsibilities,
which, by their nature, can involve subjective assessments; and (v) other factors the Committee deems significant.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In fiscal
2019, the Committee believed, and continues to believe, that it is appropriate and in the best interests of Lifeway for the Committee
to retain some discretion to use its common sense in determining a portion of the NEOs&rsquo; short-term incentive compensation
based on a subjective view of individual performance. The Committee believes that retaining this discretion provides Lifeway and/or
the Committee with the flexibility to:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">consider a variety of factors in assessing individual contributions
    depending on the nature of an individual&rsquo;s roles and responsibilities within Lifeway;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">evaluate individual goals and payouts in light of unexpected
    events or changes in the industry and related changes in business strategies, thereby minimizing the risk that individuals
    will continue to focus on areas that become less relevant just to achieve a bonus payout;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">reward individuals for superior performances during periods
    when we must react to adverse events that are out of our control; and</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">re-focus employee energy when an unanticipated opportunity
    arises that could lead to long-term benefits, and reward related individual contributions to realizing that opportunity.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Perquisites and Benefits</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Perquisites</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">We provide
executive officers and other key managers with perquisites and other personal benefits not otherwise available to all employees
that the Committee believes are reasonable and consistent with our overall compensation program and philosophy. These benefits
are provided to enable us to attract and retain these executive officers and key managers. The Audit and Corporate Governance
Committee has periodically reviewed, and the Compensation Committee will continue to periodically review, the levels of these
perquisites provided to our executive officers together with management and the relevant Committee&rsquo;s independent compensation
consultant.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Of these
benefits, the most significant ongoing benefit is providing our CEO and COO with a vehicle allowance. In exploring, planning,
and implementing the expansion of Lifeway&rsquo;s product distribution, and in supporting and developing the Lifeway brand, both
our CEO and COO roles serve in the public eye, and the roles require extensive travel, and on-camera and personal appearances.
Accordingly, we provide a vehicle allowance to both Ms. Smolyansky and Mr. Smolyansky. Each of them may use this allowance for
personal vehicle use as well. We treat this vehicle allowance as taxable compensation and do not provide additional compensation
or bonuses to cover, reimburse, or otherwise &ldquo;gross-up&rdquo; any income tax owed on this vehicle allowance.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>Benefits</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">We provide
our executive officers, including NEOs, with certain benefits that the Audit and Corporate Governance Committee believed were
reasonable and consistent with our overall compensation program and philosophy, and that befit a company like Lifeway that promotes
healthy food products and healthy living. The Committee periodically reviewed, and the Compensation Committee will continue to
periodically review, the levels of these benefits provided to our executive officers together with management and the relevant
Committee&rsquo;s independent compensation consultant.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Our executive
officers, including NEOs, are eligible for health, dental, vision, life insurance, short- and long-term disability insurance,
and 401(k) benefits to the same extent and subject to the same conditions as all other salaried employees at Lifeway. Our executive
officers, including NEOs, may also claim executive health examination expenses each year, subject to a cap designed to cover a
majority of the program fees (but not any associated medical expenses) for such executive health programs available in the Chicago,
Illinois area. We treat this health examination expense as taxable compensation and provide a tax gross-up to encourage the use
of this benefit by our executive officers.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>Accounting
and Tax Considerations</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Our ability
to deduct compensation paid to covered employees (as defined in Section 162 of the Internal Revenue Code (&ldquo;Section 162&rdquo;)),
including our NEOs, for tax purposes is limited to $1 million annually. Section 162(m) imposes this annual limit on the amount
of compensation paid to each of the chief executive officer and certain other named executive officers. Prior to the effective
date of the Tax Cuts and Jobs Act of 2017 (the &ldquo;Act&rdquo;), the deduction limit did not apply to performance-based compensation
satisfying the requirements of Section 162(m). Cash and equity awards to our NEOs under the Omnibus Plan in 2016, 2017, and 2018
were subject to one or more performance goals intended to satisfy the requirements of Section 162(m)&rsquo;s performance-based
compensation exemption.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Effective
in fiscal year 2018, the Act eliminated the Section 162(m) provisions exempting performance-based compensation from the $1 million
deduction limit, subject to an exception for remuneration pursuant to a written binding contract that was in effect on November
2, 2017. Based the Act&rsquo;s language and IRS guidance, we believe that some of the remuneration for our CEO and COO under our
Omnibus Plan in fiscal years 2018 and 2019 will qualify for this &ldquo;written binding contract&rdquo; exception. However, interpretations
of the Act and tax laws in general, as well as any changes in those tax laws and other factors beyond our control, may affect
the deductibility of any compensation paid to our employees.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Committee,
in consultation with its outside advisors and management, monitors the tax and other consequences of our executive compensation
program as part of its primary objective of ensuring that compensation paid to our executive officers is appropriate, performance-based,
and consistent with Lifeway&rsquo;s goals and the goals of our shareholders. Accordingly, we view preserving the tax deductibility
of compensation pursuant to Section 162(m) as a consideration in establishing executive compensation, but not our only objective.
In order to maintain flexibility in compensating employees in a manner designed to promote Lifeway&rsquo;s goals, the Audit and
Corporate Governance Committee has not adopted a policy that all compensation must be tax deductible. It retains the discretion
to award nondeductible compensation.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>The Committee&rsquo;s
Process for Setting Executive Compensation</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Benchmarking and Analysis:
Our Peers</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">To set
total compensation guidelines, the Audit and Corporate Governance Committee reviewed market data of companies that are comparable
to Lifeway and that it believed compete with Lifeway for executive talent, business, and capital. The Audit and Corporate Governance
Committee reviewed both specific data from public proxy filings from peer group companies and general industry data for comparable
companies that are included in proprietary third-party surveys. The Compensation Committee will continue this practice going forward.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In identifying
the peer group of surveyed companies, the Audit and Corporate Governance Committee considered market information available through
both Equilar, Inc., a leading executive data solutions company, and the Economic Research Institute, an industry- and region-specific
compensation database, as reference points and to assemble market data on companies having similar industrial characteristics
and revenues to ours. The Committee, together with management and Lockton, review the gathered data for each of our NEO and other
key employee positions and adjusted that data for the scope of each employee&rsquo;s responsibilities at Lifeway as compared to
equivalent responsibilities of positions within companies included in the survey data.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Audit
and Corporate Governance Committee believed that it was necessary to consider this market data in making compensation decisions
to attract and retain talent. The Committee also recognizes that at the executive level, we compete for talent against larger,
global companies, as well as smaller and similar-sized non-public companies. Third-party surveys are beneficial because they contain
benchmarks from hundreds of companies where Lifeway may look to recruit executives, both inside and outside the food and beverage
industry. This data can be adjusted to reflect Lifeway&rsquo;s size and structure. Proxy data is useful as the Committee can review
position-specific compensation details from an industry and public company perspective, while also controlling for size and structure.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In deciding
whether a company should be included in the peer group, the Audit and Corporate Governance Committee generally considered the
following screening criteria:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Revenue;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Market capitalization;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Assets;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Recent growth rates;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Whether the executives have similarly complex day-to-day
    roles and responsibilities;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Whether the company has primary lines of business in Lifeway&rsquo;s
    industry or related industries (such as packaged meats, distillers and vintners, brewers, growers, and beverage manufacturers);</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Whether the company has a recognizable and well-regarded
    brand; and</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Whether we compete with the company for talent.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">For each
member of the peer group below, one or more of the factors listed above was relevant to the reason for inclusion in the group,
and, similarly, one or more of these factors may not have been relevant to the reason for inclusion in the group.</FONT> </P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">To assess
whether the peer group continues to reflect the markets in which we compete for executive talent, the Audit and Corporate Governance
Committee reviewed the peer group at least twice during each fiscal year, and whenever necessary, with the assistance of management
and Lockton. The following companies were removed from Lifeway&rsquo;s peer group for fiscal 2019 compensation planning:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Amplify Snack Brands Inc.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Crystal Rock Holdings</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Golden Enterprises Inc.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Inventure Foods Inc.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Nutraceutical International Corp.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Omega Protein Corp.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">We removed
these companies from our peer group because each of them was acquired by another entity and no longer operates as a separate publicly-traded
company. As part of our ongoing review, we added Alico, Inc., Limoneira Company, S&amp;W Seed Company, The Simply Good Foods Company,
Turning Point Brands, Inc., and Youngevity International to our peer group for fiscal year 2019 compensation planning so that
it consisted of the following companies:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color:  #E6E4E2">
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">Peer
    group used for fiscal year 2019 compensation planning</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; border-left: black 1pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 50%; border-right: black 1pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                         Alico, Inc.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Castle Brands, Inc.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Coffee Holding Co Inc</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Craft Brew Alliance Inc</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Crimson Wine Group, Ltd.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Farmer Bros Co</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Freshpet Inc</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Landec Corp</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Limoneira Company</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                         Medifast Inc</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        MGP Ingredients Inc</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Primo Water Corp</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        S&amp;W Seed Company </FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        The Simply Good Foods Co.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Tootsie Roll Industries Inc</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Turning Point Brands Inc.</FONT> </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.25pt; text-indent: -17.25pt"> <FONT STYLE="font-size: 10pt">&nbsp;&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Youngevity International</FONT> </P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In consultation
with Lockton, the Audit and Corporate Governance Committee found this peer group to be peers from a pay benchmarking perspective.
As noted earlier, not all of Lifeway&rsquo;s competitors are public, and the peer group is intended to be a reasonable representation
of market practice. When considering the competitive market data, the Committee also considers the fact that the data is backward-looking
and does not necessarily reflect those companies&rsquo; current pay practices. While this analysis informed the decisions of the
Audit and Corporate Governance Committee, and the independent Board members generally, on the range of compensation opportunities,
we did not tie executive officer compensation to specific market percentiles.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In making
determinations regarding executive officer compensation, in addition to benchmarking, the Audit and Corporate Governance Committee
considered several other factors such as our financial performance and financial condition, individual executive performance,
tenure, expertise, the importance of the role, potential for future contributions, and comparative pay levels among the members
of the senior executive team, as well as input and recommendations of management and the compensation consultant. The Audit and
Corporate Governance Committee typically followed most of these recommendations; however, the Committee has sole authority for
the final compensation determination and may have set total compensation and incentive opportunities below, at, or above median
amounts.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>The
Audit and Corporate Governance Committee&rsquo;s Process for Setting Compensation Levels</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">The Audit and Corporate Governance
Committee generally followed this process when setting executive compensation levels:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">The Committee usually determines the base salary for our
    executive officers in the fourth quarter prior to the beginning of a fiscal year, but no later than the first quarter after
    that fiscal year begins. Any adjustments to base salary are effective as of dates determined by the Committee. The Committee,
    or management with Committee oversight, may make additional adjustments to base salary during the fiscal year to reflect,
    among other things, changes in title and/or job responsibilities, or changes in our performance or financial condition.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">The Committee typically determines annual incentive compensation
    for our executive officers in the fourth quarter of each fiscal year, but no later than the first quarter after that fiscal
    year ends. It usually certifies long term incentive compensation awards for our executive officers in the first quarter after
    a fiscal year has ended. The Audit and Corporate Governance Committee evaluates each executive officer&rsquo;s performance
    against the performance goals and objectives established for the prior fiscal year and determines the level of incentive compensation
    to be awarded to each executive officer. As part of the evaluation process, the Audit and Corporate Governance Committee solicits
    comments from management and may consult the other disinterested Board members and its independent compensation consultant.
    Additionally, the executive officers have an opportunity to provide input regarding their contributions to Lifeway&rsquo;s
    performance and achievement of any individual goals for the period being assessed. The Audit and Corporate Governance Committee
    also reviews, evaluates, and ultimately certifies Lifeway&rsquo;s achievement of financial performance goals for the prior
    fiscal year. Incentive compensation for executive officers is approved by the Audit and Corporate Governance Committee. </FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">In conjunction with determining incentive compensation awards
    for the prior fiscal year, the Audit and Corporate Governance Committee establishes individual and corporate performance goals
    and objectives for each executive officer for the next fiscal year. Management and the Committee&rsquo;s compensation consultant
    typically provide input and recommendations to the Committee regarding appropriate individual and corporate performance goals
    and objectives for each executive officer. The Audit and Corporate Governance Committee then determines the individual and
    corporate performance goals and objectives for the fiscal year.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">&bull;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">The Audit and Corporate Governance Committee also has the
    discretion to make equity-based and cash-based grants under the Omnibus Plan to eligible individuals for purposes of compensation,
    retention, or promotion, and in connection with commencement of employment. Such equity compensation is generally determined
    during the first quarter of each fiscal year. Additional equity awards may be made during the fiscal year to new hires and
    to reflect, among other things, changes in title and/or job responsibilities, or our performance or financial condition.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>Information
About Our Executive Team</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Information
about our executive team is set forth above in Item 10. Directors, Executive Officers and Corporate Governance.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> <FONT STYLE="font-size: 10pt"><B>Fiscal
Year 2019 Compensation Decisions</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">We awarded our NEOs the following
compensation in fiscal year 2019:</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Fiscal Year 2019 Base
Salaries</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">We did
not increase our CEO&rsquo;s, COO&rsquo;s or General Counsel&rsquo;s base salaries in fiscal year 2019. We believe that their
salary levels continue to be appropriate and reasonable given their capabilities and experience, as well as the limitations that
Danone has imposed on Lifeway issuing our CEO and COO equity compensation. We have described these limitations more fully below
in the section &ldquo;Consent by Danone to Common Stock Issuances.&rdquo;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Fiscal Year 2019 Compensation
Paid to our NEOs</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The following
table sets forth certain information concerning compensation received by Lifeway&rsquo;s NEOs, consisting of our Chief Executive
Officer and the two other most highly paid executive officers for services rendered in all capacities during fiscal year 2018
and 2019.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="27" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Summary Compensation Table </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Name and Principal Position(s) </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Year </TD><TD STYLE="color: Black; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>Salary</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>($)</B></FONT> </P></TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Bonus (1)<BR>
    ($) </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Stock<BR> Awards
    (2)<BR> ($) </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Nonequity incentive
    plan compensation (3) ($) </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> All Other Compensation
    (4) ($) </TD><TD STYLE="color: Black; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>Total</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>($)</B></FONT> </P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left; width: 23%"> Julie Smolyansky </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%; text-align: center"> 2019 </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 9%; text-align: right"> 1,000,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 8%; text-align: right"> 130,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 8%; text-align: right"> 17,534 </TD><TD STYLE="width: 3%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 8%; text-align: right"> 250,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 8%; text-align: right"> 77,460 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 9%; text-align: right"> 1,474,994 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Chief Executive Officer, </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,000,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 200,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 59,113 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,259,113 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <I>President and Secretary</I> </TD><TD> &nbsp; </TD>
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> Edward Smolyansky </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2019 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,000,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 130,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 17,534 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 250,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 62,056 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,459,590 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Chief Operating Officer </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,000,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 200,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 59,800 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,259,800 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> Douglas A. Hass </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2019 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 354,500 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">82,120</FONT> </TD><TD STYLE="text-align: left"> (5) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 37,500 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 374,931 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 849,051 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Former General Counsel </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 354,500 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">11,600 </FONT> </TD><TD STYLE="text-align: left"> (6) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 97,500 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 26,095 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 489,695 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> and Assistant Secretary </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Discretionary bonuses approved for individual NEOs based
    on (i) the NEO&rsquo;s individual contributions to the Company&rsquo;s performance (including their individual performance
    relative to the factors covered by the Omnibus Plan); (ii) the nature and extent of the Company&rsquo;s accomplishments; (iii)
    input from management and the Board with respect to other NEOs; (iv) individual contributions, roles, and responsibilities,
    which, by their nature, can involve subjective assessments; and (v) other factors deemed significant.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(2)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Stock Awards are grants of shares with time-based vesting
    requirements made pursuant to the Omnibus Plan. The amounts reported in this column represent the value consistent with the
    estimate of aggregate compensation cost to be recognized over the service period for the stock awards granted for the relevant
    fiscal year. As discussed below in the section &ldquo;Consent by Danone to Common Stock Issuances,&rdquo; we must obtain Danone&rsquo;s
    consent before issuing these Performance Shares when they vest (if at all).</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(3)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Details about the Bonus, Stock Awards, and Non-equity incentive
    plan compensation columns in the Summary Compensation Table assuming achievement (i) at or below threshold; (ii) at target;
    (ii) at maximum; and comparing those values to the actual value of incentive compensation for our NEOs are set forth in the
    table below.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="21" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Incentive Compensation Awards
    Detail </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"> &nbsp; </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Potential Value of Incentive
    Plan Compensation </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="5" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Actual Value of Total Incentive
    Compensation </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Name and Principal Position(s) </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Year </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Form </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Threshold ($) </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>Target</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>($)</B></FONT> </P></TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>Maximum</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>($)</B></FONT> </P></TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>Total
                                         Earned</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>($)</B></FONT> </P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> % of Total </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left; width: 24%"> Julie Smolyansky </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%; text-align: center"> 2019 </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 11%; text-align: center"> Equity </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 8%; text-align: center"> 0 </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> 500,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> 500,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> 17,534 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%; font-style: italic"> &nbsp; </TD>
    <TD STYLE="width: 8%; font-style: italic; text-align: center"> 4% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Chief Executive Officer, </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Nonequity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 500,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 900,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 250,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 28% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> President and Secretary </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Equity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,725,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 0% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Nonequity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,725,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 200,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 12% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> Edward Smolyansky </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2019 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Equity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 500,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 500,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 17,534 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 4% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Chief Operating Officer </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Nonequity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 500,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 900,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 250,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 28% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Equity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,725,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 0% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Nonequity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,725,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 200,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 12% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> Douglas A. Hass </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2019 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Equity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 0% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Former General Counsel </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Nonequity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 210,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 37,500 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 18% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> and Assistant Secretary </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Equity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 400,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 600,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 11,600 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 2% </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> Nonequity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 0 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 150,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 97,500 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="font-style: italic"> &nbsp; </TD>
    <TD STYLE="font-style: italic; text-align: center"> 65% </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(4)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Details about the amounts in the &ldquo;All Other Compensation&rdquo;
    column are set forth in the table below.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="23" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>All
                                         Other Compensation Details</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Name and Principal Position(s) </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Year </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Retirement
    Plan Contributions (A)<BR> ($) </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Auto Allowance
    (B)<BR> ($) </TD><TD STYLE="color: Black; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>All
                                         Other Perks </B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>($)</B></FONT> </P></TD><TD STYLE="color: Black; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>Other
                                         </B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>($)</B></FONT> </P></TD><TD STYLE="color: Black; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>Total</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>($)</B></FONT> </P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="width: 24%; font-weight: bold; text-align: left"> Julie Smolyansky </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%; text-align: center"> 2019 </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> 11,200 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> 40,407 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> 25,853 </TD><TD STYLE="width: 3%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> &ndash; </TD><TD STYLE="width: 3%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 10%; text-align: right"> 77,460 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Chief Executive Officer, </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 11,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 43,449 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 3,058 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 1,606 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 59,113 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> President and Secretary </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> Edward Smolyansky </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2019 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 39,684 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 22,372 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 62,056 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Chief Operating Officer </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 11,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 44,180 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 4,620 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 59,800 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> Douglas A. Hass </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2019 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 11,200 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 13,731 </TD><TD STYLE="text-align: left"> (C) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 350,000 </TD><TD STYLE="text-align: left"> (D) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 374,931 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> Former General Counsel </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> 2018 </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 11,000 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 15,095 </TD><TD STYLE="text-align: left"> (C) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 26,095 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left"> and Assistant Secretary </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT> </P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(A)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Consists of Lifeway&rsquo;s matching contributions to the
    Lifeway Foods Inc. 401(k) Profit Sharing Plan and Trust on behalf of the NEO</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(B)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Consists of a personal vehicle allowance</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(C)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Consists of an Internet/telecommunications services allowance
    of $3,600 and an allowance for executive health examination benefits</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">(D)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Consists of a severance payment discussed further below under
    &ldquo;Employment agreements, severance, and change-in-control arrangements between Lifeway and Named Executive Officers&rdquo;</FONT> </TD></TR>
</TABLE>

<P STYLE="margin: 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(5)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Consists of discretionary bonuses awarded to Mr. Hass in
    2019 exclusive of any awards under the 2019 Long Term Incentive Plan. </FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">(6)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Mr. Hass elected to receive a portion of his annual bonus
    in shares of common stock, a total of 5,395 shares. The shares vested on March 22, 2019.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Consent by Danone to Common
Stock Issuances</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Lifeway,
members of the Smolyansky family, and Danone signed a Stockholders&rsquo; Agreement dated October 1, 1999. Under this Agreement,
as amended, Danone must give its consent to, among other things, issuances of common stock to our (1) non-employee directors,
(2) our employees, and (3) our CEO and COO, including any performance-based, long-term incentive equity awards to employees including
our CEO and COO pursuant to our Omnibus Plan.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In 2018,
we tried to obtain Danone&rsquo;s consent to equity awards to (1) non-employee directors for the 2018-19 Board year, (2) employees
who had earned incentive stock awards in 2017 that would vest in March 2018, and (3) our CEO and COO, who had earned 32,016 Performance
Shares in 2017 that would vest in March 2018. However, Danone only consented to the first two categories of issuances, while declining
to consent to the awards to our CEO and COO. Therefore, the Board&rsquo;s Audit and Corporate Governance Committee later cancelled
and extinguished the vested portion of our CEO and COO&rsquo;s Performance Share award in exchange for incentive cash payments
to Ms. Smolyansky and Mr. Smolyansky under the Omnibus Plan in the amount of $287,500 each, the value of the vested portion of
the Performance Share award on its vesting date.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In 2019,
Lifeway sought Danone&rsquo;s consent to the issuance of Performance Shares to (1) non-employee directors for the 2019-20 Board
year, (2) employees who had earned incentive or retention stock awards that would vest in March 2019, and (3) our CEO and COO,
who had earned 32,016 Performance Shares in 2017 that would vest in March 2019. However, Danone only consented to the first two
categories of issuances, while again declining to give consent to the awards to our CEO and COO. Therefore, the Board&rsquo;s
Audit and Corporate Governance Committee cancelled and extinguished our CEO and COO&rsquo;s Performance Share award in exchange
for incentive cash payments to Ms. Smolyansky and Mr. Smolyansky in the amount of $68,194 each, the value of the vested portion
of the Performance Share award on its vesting date. The remaining 32,015 shares of the Performance Share awards to Ms. Smolyansky
and Mr. Smolyansky for 2017 Performance Periods will vest, if at all, in 2020 pursuant to the schedule approved by the Board and
will require Danone&rsquo;s consent prior to issuance.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">In 2020,
we tried to obtain Danone&rsquo;s consent to issuance of Performance Shares to our CEO and COO, who had earned 32,015 Performance
Shares in 2017 that would vest in March 2020. However, Danone declined to consent to the awards to our CEO and COO. Therefore,
the Board&rsquo;s Audit and Corporate Governance Committee later cancelled and extinguished the vested portion of our CEO and
COO&rsquo;s Performance Share award in exchange for incentive cash payments to Ms. Smolyansky and Mr. Smolyansky under the Omnibus
Plan in the amount of $58,587 each, the value of the vested portion of the Performance Share award on its vesting date.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Danone&rsquo;s
denials had no impact on the total incentive compensation earned by our CEO and COO in 2018 and 2019. However, the denials served
to eliminate the long-term equity awards due them in favor of non-equity incentive awards. The newly constituted Compensation
Committee is reviewing whether the current levels of equity and non-equity incentive awards to our CEO and COO is appropriate
and in the best interest of our shareholders. As part of our benchmarking and analysis process described above, the Audit and
Corporate Governance Committee determined that all of Lifeway&rsquo;s peers, as well as numerous other publicly traded corporations
led by founders and/or controlling shareholders, make such awards to their named executive officers (even when such NEOs also
hold substantial or controlling stakes in those companies).</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Fiscal Year 2019 Director
Compensation</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The table
below describes the cash and stock award portions of the annual retainer paid to each non-employee director who served in fiscal
year 2019. While directors receive annual retainers based on the June-to-June Board service year, the table below reflects payments
made during fiscal year 2019. Ms. Smolyansky and Mr. Smolyansky received no compensation as directors. We have excluded them from
the table because we fully describe their compensation in the &ldquo;Named Executive Officer Compensation&rdquo; section.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; width: 43%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Name</B></FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Fees
    Earned <BR>
    or Paid <BR>
    in Cash ($)</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: top; width: 12%; border-bottom: black 1.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-size: 10pt"><B>Stock
                                         Awards</B></FONT> </P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-size: 10pt"><B>(1)<BR>
                                         ($)</B></FONT> </P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>All
    Other<BR>
    Compensation<BR>
    ($)</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 3%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Total<BR>
    ($)</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Ludmila Smolyansky</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">1,585,132</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;(2)</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">1,585,132</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Renzo Bernardi</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">27,500</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">30,000</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">57,500</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Pol Sikar</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">57,500</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">33,002</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">90,502</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Jason Scher</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">57,500</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">30,000</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">87,500</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">George Sent (3)</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">95,063</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">73,688</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">168,751</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Jody Levy (4)</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Paul Lee (5)</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Details about the amounts in the &ldquo;Stock Awards&rdquo;
    column are set forth in the table below</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="10" STYLE="border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Stock Awards
    Detail</B></FONT> </TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; width: 42%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Name</B></FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid; text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid; text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: top; width: 12%; border-bottom: black 1.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-size: 10pt"><B>Vested
                                         Stock</B></FONT> </P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-size: 10pt"><B>Award(A)<BR>
                                         ($)</B></FONT> </P></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 1.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-size: 10pt"><B>Restricted
                                         Stock</B></FONT> </P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-size: 10pt"><B>Award(B)<BR>
                                         ($)</B></FONT> </P></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 2%; border-bottom: black 1.5pt solid; text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Total<BR>
    ($)</B></FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Ludmila Smolyansky</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Renzo Bernardi</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">30,000</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">30,000</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Pol Sikar</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">3,002</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">30,000</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">33,002</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Jason Scher</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">30,000</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">30,000</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">George Sent</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">28,688</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">45,000</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">73,688</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Jody Levy</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Paul Lee</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">&ndash;</FONT> </TD>
    <TD STYLE="white-space: nowrap"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 53px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(A)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Pursuant to the Stockholders&rsquo; Agreement dated October
    1, 1999, as amended, among Lifeway, members of the Smolyansky family, and Danone, Danone must give its consent to, among other
    things, issuances of incentive stock awards to our non-employee directors. On June 14, 2018, the Board, with Danone&rsquo;s
    approval, gave each director the option of receiving all or part of their annual retainer in a vested stock award. Mr. Sikar
    elected to receive 5% of his annual retainer in vested shares of common stock, a total of 822 shares. Mr. Sent elected to
    receive 27% of his annual retainer in vested shares of common stock, a total of 6,164 shares.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 53px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(B)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Pursuant to the Stockholders&rsquo; Agreement dated October
    1, 1999, as amended, among Lifeway, members of the Smolyansky family, and Danone, Danone must give its consent to, among other
    things, issuances of incentive stock awards to our non-employee directors. On June 20, 2019, the Board awarded, and Danone
    approved, a time-based restricted stock award to each non-employee director of $30,000, a total of 8,219 shares each. Of such
    time-based restricted stock, 2,740 shares will vest on June 20, 2020; 2,740 will vest on June 20, 2021; and 2,739 will vest
    on June 20, 2022, contingent on the director&rsquo;s continued service on each applicable vesting date. Mr. Sent resigned
    as director on January 24, 2020 and his restricted stock award was forfeited.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(2)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Of the All Other Compensation, (a) $1,000,000 represents
    the annual fees paid to Mrs. Smolyansky for her services as a consultant to Lifeway; and (b) $585,132 represents royalty payments.
    Both relationships are discussed further in the &ldquo;Certain Relationships and Related Party Transactions&rdquo; section
    below. Mrs. Smolyansky did not receive any retainer fees in her capacity as a non-employee director.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(3)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Mr. Sent served as Chairperson of the Audit and Corporate
    Governance Committee and Lead Independent Director until January 24, 2020, the effective date of his resignation. Upon his
    resignation, he forfeited his restricted stock award for fiscal year 2018.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(4)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Ms. Levy was appointed director on February 11, 2020 and
    received no compensation during fiscal year 2019.&nbsp;&nbsp;She has served as a member of the Audit and Corporate Governance
    Committee since February 11, 2020.</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: justify"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">(5)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Mr. Lee served as a member of the Board of Directors and
    the Audit and Corporate Governance Committee through January 11, 2019.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>Committee
Interlocks and Insider Participation</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">During
fiscal year 2019, the Audit and Corporate Governance Committee consisted of Messrs. Scher, Sikar, and Sent or Lee. Effective January
11, 2019, Mr. Sent replaced Mr. Lee on the Committee. None of these members was, at any time during fiscal year 2019, or at any
previous time, a Lifeway officer or employee.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">None
of Lifeway&rsquo;s executive officers served as a member of the board of directors or compensation committee of any other entity
that has one or more of its executive officers serving as a member of Lifeway&rsquo;s Board. No member of the Audit and Corporative
Governance Committee has or had any relationship with us requiring disclosure under Item 404 of Securities and Exchange Commission
Regulation S-K.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt"><B>COMPENSATION
COMMITTEE REPORT</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The following
report does not constitute soliciting material and is not considered filed or incorporated by reference into any other filing
by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The Compensation
Committee has reviewed and discussed with management the Compensation Discussion and Analysis section of this Form 10-K Amendment,
including the related compensation tables, notes, and narrative discussion. Based on its review and discussions with management,
the Compensation Committee recommended to the Board the inclusion of the Compensation Discussion and Analysis in this Form 10-K
Amendment.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Respectfully Submitted,</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>COMPENSATION COMMITTEE
</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Jason Scher, Chairperson</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Jody Levy</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">THE FOREGOING
COMPENSATION COMMITTEE REPORT SHALL NOT BE &ldquo;SOLICITING MATERIAL&rdquo; OR BE DEEMED FILED WITH THE SEC, NOR SHALL SUCH INFORMATION
BE INCORPORATED BY REFERENCE INTO ANY FILING UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE EXCHANGE ACT, EXCEPT TO THE
EXTENT THE COMPANY SPECIFICALLY INCORPORATES IT BY REFERENCE INTO SUCH FILING.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="font-size: 10pt"><B>Employment agreements,
severance, and change-in-control arrangements between Lifeway and Named Executive Officers</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>NEO
Employment Agreements</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Julie
Smolyansky serves Lifeway pursuant to an employment agreement dated as of September 12, 2002. Pursuant to the agreement, Ms. Smolyansky
is entitled to an annual base salary and an annual bonus subject to such incentive bonus targets and plans that Lifeway may adopt
from time to time. In both 2018 and 2019, Ms. Smolyansky was entitled to receive an annual base salary of $1,000,000, an amount
that the Board reviews annually. She is also eligible for certain cash, equity, and other incentive awards based on the satisfaction
of the Board&rsquo;s pre-established performance goals. In 2018 and 2019, the Board set bonus targets for her in compliance with
its Omnibus Plan and applicable IRS regulations governing performance-based compensation for which Ms. Smolyansky is eligible.
In the event that (a) Ms. Smolyansky is terminated other than for Cause (as defined therein) or (b) Ms. Smolyansky terminates
her employment for Good Reason (as defined in the agreement) or due to her death, then Ms. Smolyansky is entitled to a lump sum
payment consisting of (y) twice her then-current base salary and (z) the aggregate of the annual bonus for which she is then eligible
under the agreement and any plans.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Edward
Smolyansky serves as Lifeway&rsquo;s Chief Operating Officer and is not subject to an employment agreement. Pursuant to the terms
of his employment set by the Board, Mr. Smolyansky is entitled to an annual base salary and is also eligible for certain cash,
equity, and other incentive awards based on the satisfaction of the Board&rsquo;s pre-established performance goals. In both 2018
and 2019, Mr. Smolyansky was entitled to receive an annual base salary of $1,000,000, an amount that the Board reviews annually.
In 2018 and 2019, the Board set bonus targets for him in compliance with its Omnibus Plan and applicable IRS regulations governing
performance-based compensation. Mr. Smolyansky is not subject to any severance or change-in-control arrangements.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">Douglas
A. Hass served Lifeway through December 31, 2019 pursuant to an employment agreement dated as of April 21, 2017 and effective
January 1, 2017. Mr. Hass&rsquo; position of General Counsel was eliminated as part of Lifeway&rsquo;s ongoing organizational
restructuring effective December 31, 2019. Mr. Hass also resigned as Secretary of the Company, and his employment agreement was
terminated, effective December 31, 2019. In both 2018 and 2019, Mr. Hass&rsquo;s base salary was $354,000. Pursuant to the agreement,
Mr. Hass was also eligible for certain cash, equity, and other incentive awards based on the satisfaction of the Board&rsquo;s
pre-established performance goals. In 2018 and 2019, the Board set bonus targets for him in compliance with its Omnibus Plan and
applicable IRS regulations governing performance-based compensation. Pursuant to his employment agreement, upon Mr. Hass&rsquo;
resignation he was entitled to, and received, the payments and benefits set forth in the table below.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 16%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 45%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Benefit</B></FONT> </TD>
    <TD STYLE="width: 39%; border-bottom: black 1.5pt solid"> <FONT STYLE="font-size: 10pt"><B>Dollar Amount</B></FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt"><I>Base Salary</I></FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">The remainder of the term or 6 months, whichever is greater</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">$350,000</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt"><I>Bonus Payments</I></FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Greater of (i) bonus for fiscal year of termination date (ii) bonus paid for fiscal year
    prior to termination date</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Common Stock in the amount of $11,598</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt"><I>Outstanding Equity Awards</I></FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Accelerated vesting of all outstanding equity awards</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">All of Mr. Hass&rsquo; unvested equity awards vested as of December 31, 2019</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>Omnibus
Plan Change of Control Provisions</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Pursuant
to Articles 16.1 and 16.2 of the Omnibus Plan, if, prior to the vesting date of an Award under the Omnibus Plan, a Change of Control
occurs and the NEO receives neither (i) a Replacement Award nor (ii) payment for the cancellation and termination of the Award,
then all then-outstanding and unvested Stock Options, Stock Appreciation Rights, and Awards whose vesting depends merely on the
satisfaction of a service obligation by the NEO shall vest in full and be free of vesting restrictions.</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Pursuant
to Article 16.3 of the Omnibus Plan, upon an NEO&rsquo;s termination of employment other than for Cause in connection with or
within two years after a Change of Control, then (i) all Replacement Awards shall become fully vested and (if applicable) exercisable
and free of restrictions, and (ii) all Stock Options and Stock Appreciation Rights held by the NEO on the date of termination
that were held on the date of the Change of Control shall remain exercisable for the term of the Stock Option or Stock Appreciation
Right.</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">Capitalized
terms used in this section but not defined herein have the meanings assigned to them in the Omnibus Plan.</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">There
are no other agreements with the NEOs that provide for payments in connection with resignation, retirement, termination of employment,
or change in control other than the employment agreements described above.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt"><B>Equity
Compensation Plans</B></FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">The following
table sets forth certain information, as of December 31, 2019, regarding the shares of Lifeway&rsquo;s common stock authorized
for issuance under our Omnibus Plan.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Plan category </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>(a)</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>Number
                                         of securities to be issued upon exercise of outstanding options, warrants and rights</B></FONT> </P></TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>(b)</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>Weighted-average
                                         exercise price of outstanding options, warrants and rights</B></FONT> </P></TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>(c)</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>Number
                                         of securities remaining available for</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 10pt; color: Black"><B>future
                                         issuance under equity compensation plans (excluding securities reflected in column (a))</B></FONT> </P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="width: 55%; font-weight: bold; text-align: left"> Equity compensation plans approved by security holders </TD><TD STYLE="width: 2%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 11%; text-align: right"> 40,550 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 2%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 11%; text-align: right"> 10.42 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 2%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 11%; text-align: right"> 3,377,096 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left"> Equity compensation plans not approved by security
    holders </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"> 0 </TD><TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"> $ </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"> 0 </TD><TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"> &ndash; </TD><TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: center"> Total </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 40,550 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 10.42 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 3,377,096 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">On March
29, 2016, Lifeway filed a registration statement on Form S-8 with the Securities and Exchange Commission in connection with the
Omnibus Plan covering 3,500,000 shares of our common stock, as adjusted. We adopted the Omnibus Plan on December 14, 2015. Pursuant
to the Plan, we may issue common stock, options to purchase common stock, stock appreciation rights, restricted stock, restricted
stock units, performance units, performance shares, cash-based awards and other stock-based awards to our employees. A total of
3,377,096 shares were eligible for issuance under the Plan at December 31, 2019. The Compensation Committee has the discretion
to determine the option price, number of shares, grant date, and vesting terms of awards granted under the Plan.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <FONT STYLE="font-size: 10pt"><B>Outstanding
Equity Awards at Fiscal Year End</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">The following
table provides information regarding each unexercised stock option and unvested restricted stock award held by our NEOs as of
December 31, 2019.</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD COLSPAN="9" STYLE="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center"> <FONT STYLE="font-size: 8pt">Option
    awards</FONT> </TD><TD STYLE="padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-size: 8pt"><B>Stock awards</B></FONT> </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-size: 8pt">Name</FONT> </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-size: 8pt">Grant
    Date</FONT> </TD><TD STYLE="color: Black; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>Number
                                         of securities underlying unexercised options exercisable</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>(#)</B></FONT> </P></TD><TD STYLE="color: Black; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>Option</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>exercise
                                         price</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>($)</B></FONT> </P></TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-size: 8pt">Option
    expiration date</FONT> </TD><TD STYLE="color: Black; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>Number
                                         of shares or units of stock that have not vested</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>(#)</B></FONT> </P></TD><TD STYLE="color: Black; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>Market
                                         value of shares of units of stock that have not vested</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>($)
                                         (1)</B></FONT> </P></TD><TD STYLE="color: Black; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>Equity</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>incentive</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>plan
                                         awards: Number of</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>unearned</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>shares,
                                         units or other rights that have not vested</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>(#)</B></FONT> </P></TD><TD STYLE="color: Black; padding-bottom: 1pt"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD COLSPAN="3" STYLE="color: Black; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>Equity</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>incentive</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>plan
                                         awards: Market or payout value of</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>unearned</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>shares,
                                         units or other rights that have not vested</B></FONT> </P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center;"> <FONT STYLE="font-size: 8pt; color: Black"><B>($)
                                         (1)</B></FONT> </P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left; width: 16%"> <FONT STYLE="font-size: 8pt">Julie Smolyansky</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 10%; text-align: center"> <FONT STYLE="font-size: 8pt">8/7/17(2)</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 8%; text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 8%; text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 8%; text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 8%; text-align: right"> <FONT STYLE="font-size: 8pt">32,015</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="width: 8%; text-align: right"> <FONT STYLE="font-size: 8pt">63,710</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 8%; text-align: right"> <FONT STYLE="font-size: 8pt">&ndash;</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="width: 8%; text-align: right"> <FONT STYLE="font-size: 8pt">0</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">3/22/19(3)</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">4,078</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">8,769</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">224,403</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">446,561</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-size: 8pt">Edward Smolyansky</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">8/7/17(2)</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">32,015</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">63,710</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&ndash;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">0</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">3/22/19(3)</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">4,078</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">8,769</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">224,403</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">446,561</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-size: 8pt">Douglas A. Hass</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">7/1/16 (4)</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">150</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">9.57</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-size: 8pt">7/1/26</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"> <FONT STYLE="font-size: 8pt">&nbsp;</FONT> </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="width: 27px"> <FONT STYLE="font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">The market values of these stock awards are calculated by
    multiplying the number of unvested/unearned shares held by the applicable NEO by the closing price of our common stock on
    December 31, 2019, the last trading day of our fiscal year, which was $1.99.</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">(2)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Represents a time-based restricted stock award pursuant to
    Lifeway&rsquo;s 2015 Omnibus Incentive Plan. As discussed above in the section &ldquo;Consent by Danone to Common Stock Issuances,&rdquo;
    these unvested stock awards (Performance Shares) earned for fiscal year 2017 are subject to Danone&rsquo;s consent to issuances
    of performance-based, long-term incentive stock awards for fiscal year 2017 to our CEO and COO.&nbsp;&nbsp;Of such time-based
    restricted stock, 32,015 would have vested on March 12, 2020, but were cancelled, terminated and extinguished pursuant to
    resolutions adopted by our Audit and Corporate Governance Committee in exchange for a cash payment equal to the value of the
    vested shares on their vesting date. </FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">(3)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Represents a time-based restricted stock award pursuant to
    Lifeway&rsquo;s 2015 Omnibus Incentive Plan. As discussed above in the section &ldquo;Consent by Danone to Common Stock Issuances,&rdquo;
    unvested stock awards (Performance Shares) are subject to Danone&rsquo;s consent to issuances of performance-based, long-term
    incentive stock awards for fiscal year 2019 to our CEO and COO.&nbsp;&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">(4)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">The time-based vesting condition has been met and the options
    are fully-vested and exercisable.</FONT> </TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <FONT STYLE="font-size: 10pt">&nbsp;</FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><A NAME="a_021"></A>ITEM 12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> As of May 31, 2020, Lifeway&rsquo;s
directors and Named Executive Officers beneficially own, directly or indirectly, in the aggregate, approximately 51.77% of its
outstanding Common Stock. These shareholders have significant influence over our business affairs, with the ability to control
matters requiring approval by our shareholders including election of directors and matters such as approvals of mergers or other
business combinations. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> The following table sets forth, as
of May 31, 2020, certain information with respect to the beneficial ownership of the Common Stock for (i) each person, or group
of affiliated persons, known by Lifeway to beneficially own more than 5% of the outstanding shares of our Common Stock, (ii) each
of our directors, (iii) each of our Named Executive Officers, and (iv) all of our directors and executive officers as a group. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD ROWSPAN="2" STYLE="border-bottom: Black 1pt solid"> <FONT STYLE="font-size: 10pt; color: Black"><B>Name and Address
    (a)</B></FONT> </TD>
    <TD STYLE="padding-bottom: 1pt"> <FONT STYLE="color: Black">&nbsp;</FONT> </TD>
    <TD COLSPAN="7" STYLE="border-bottom: Black 1pt solid; text-align: center"> <FONT STYLE="font-size: 10pt; color: Black"><B>Shares
    Beneficially Owned (b)</B></FONT> </TD>
    <TD STYLE="padding-bottom: 1pt; white-space: nowrap"> <FONT STYLE="color: Black">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: black 1.5pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt; color: Black"><B>Number</B></FONT> </TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1.5pt solid"> <FONT STYLE="color: Black">&nbsp;</FONT> </TD>
    <TD STYLE="border-bottom: black 1.5pt solid"> <FONT STYLE="color: Black">&nbsp;</FONT> </TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"> <FONT STYLE="font-size: 10pt; color: Black"><B>Percent</B></FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="width: 75%"> <FONT STYLE="font-size: 10pt">Ludmila Smolyansky</FONT> </TD>
    <TD STYLE="width: 1%; text-align: right"> &nbsp; </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 9%; text-align: right"> <FONT STYLE="font-size: 10pt">4,039,641</FONT> </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; width: 3%; text-align: left"> <FONT STYLE="font-size: 10pt">(c)</FONT> </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 7%; text-align: right"> <FONT STYLE="font-size: 10pt">25.96%</FONT> </TD>
    <TD STYLE="white-space: nowrap; width: 1%"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Julie Smolyansky</FONT> </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">2,353,903</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: left"> <FONT STYLE="font-size: 10pt">(d)</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">15.13%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Edward Smolyansky</FONT> </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">2,035,053</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: left"> <FONT STYLE="font-size: 10pt">(e)</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">13.08%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Douglas A. Hass</FONT> </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">37,589</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">*</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Renzo Bernardi</FONT> </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">27,061</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">*</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Jody Levy</FONT> </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">0</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">*</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD> <FONT STYLE="font-size: 10pt">Pol Sikar</FONT> </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">17,929</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">*</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-size: 10pt">Jason Scher</FONT> </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">13,161</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">*</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Danone North America PBC </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> 100 Hillside Avenue </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> White Plains, NY 10603-2861 </P></TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">3,454,756</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: left"> <FONT STYLE="font-size: 10pt">(f)</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">22.2%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> All directors and executive officers as a group </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> (11 persons) </P></TD>
    <TD STYLE="text-align: right"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">8,055,209</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: left"> <FONT STYLE="font-size: 10pt">(g)</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="text-align: right"> <FONT STYLE="font-size: 10pt">51.77%</FONT> </TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> ____________ </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">*</FONT> </TD>
    <TD> <FONT STYLE="font-size: 10pt">Less than 1%</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">(a)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Unless otherwise indicated, the business address of each
    person or entity named in the table is c/o Lifeway Foods, Inc., 6431 Oakton St., Morton Grove, IL 60053.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">(b)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Applicable percentage of ownership is based on 15,559,303
    shares of Common Stock outstanding as of May 31, 2020. Beneficial ownership is determined in accordance with SEC rules and
    includes voting and investment power with respect to shares. Shares of Common Stock subject to options, warrants, or other
    convertible securities exercisable within 60 days after May 31, 2020 are deemed outstanding for computing the percentage ownership
    of the person holding such options, warrants, or other convertible securities, but are not deemed outstanding for computing
    the percentage of any other person. Except as otherwise noted, the named beneficial owner has the sole voting and investment
    power with respect to the shares of Common Stock shown.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">(c)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Includes (i) 4,012,298 shares held by the Ludmila Smolyansky
    Trust 2/1/05, of which Mrs. Smolyansky is the trustee and (ii) 27,343 shares held by The Smolyansky Family Foundation, of
    which Mrs. Smolyansky is the trustee. Includes an aggregate of 1,759,000 shares subject to pledge in accordance with the terms
    and conditions of a full recourse loan agreement with a lender.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">(d)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Includes (i) 22,216 shares held by Ms. Smolyansky on behalf
    of minor children, (ii) 4,636 shares held by Ms. Smolyansky&rsquo;s spouse and (iii) 500,000 shares held by Smolyansky Family
    Holdings, LLC (the &ldquo;Smolyansky LLC&rdquo;) of which Ms. Smolyansky beneficially owns 50%. Ms. Smolyansky shares the
    power to vote and dispose of the shares held by the Smolyansky LLC with Mr. Smolyansky. Ms. Smolyansky disclaims beneficial
    ownership of the shares held by the Smolyansky LLC except to the extent of any pecuniary interest therein.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">(e)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Includes 500,000 shares held by the Smolyansky LLC of which
    Mr. Smolyansky beneficially owns 50%. Mr. Smolyansky shares the power to vote and dispose of the shares held by the Smolyansky
    LLC with Ms. Smolyansky. Mr. Smolyansky disclaims beneficial ownership of the shares held by the Smolyansky LLC except to
    the extent of any pecuniary interest therein.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">(f)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Based on information known to Lifeway.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"> &nbsp; </TD>
    <TD STYLE="width: 24px"> <FONT STYLE="font-size: 10pt">(g)</FONT> </TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-size: 10pt">Includes (i) 4,012,298 shares held by the Ludmila Smolyansky
    Trust 2/1/05, of which Ludmila Smolyansky is the trustee, (ii) 27,343 shares held by The Smolyansky Family Foundation, of
    which Ludmila Smolyansky is the trustee, (iii) 22,216 shares held by Julie Smolyansky on behalf of minor children, (iv) 4,636
    shares held by Julie Smolyansky&rsquo;s spouse and (iii) 500,000 shares held by the Smolyansky LLC of which Julie Smolyansky
    and Edward Smolyansky each beneficially owns 50%.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="a_022"></A>ITEM
13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> We have determined that there were
no related party transactions in excess of $120,000 since January 1, 2019, or currently proposed, involving Lifeway except for
the consulting arrangement and Endorsement Agreement with Ludmila Smolyansky, our Chairperson of the Board, as further discussed
below. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> On March 14, 2016, we entered into
an endorsement agreement (the &ldquo;Endorsement Agreement&rdquo;) with Mrs. Smolyansky that was effective January 1, 2016. Under
the terms and conditions of the Endorsement Agreement, Mrs. Smolyansky grants an unlimited, perpetual, non-exclusive, worldwide
and, except as set forth therein, royalty free, right to use, reuse, publish, reproduce, perform, copy, create derivative works,
exhibit, broadcast and display Mrs. Smolyansky&rsquo;s name, image and likeness in Marketing Materials (as defined in the Agreement).
As consideration for such license, we agree to pay Mrs. Smolyansky a royalty equal to $0.02 for each product or item sold by Lifeway
during each calendar month bearing Mrs. Smolyansky&rsquo;s first name, last name, or other identifying personal characteristics;
provided however that such royalty will not exceed $50,000 in any month and such royalty payments will cease upon the death of
Mrs. Smolyansky. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> On March 18, 2016, Lifeway entered
into a consulting agreement (the &ldquo;Consulting Agreement&rdquo;) with Mrs. Smolyansky that was effective January 1, 2016.
Under the terms and conditions of the Agreement, Mrs. Smolyansky will continue to provide consulting services to us for which
we will pay Mrs. Smolyansky an aggregate of $1,000,000 annually and prorated amounts for periods shorter than a year. The Consulting
Agreement is terminable by either party on ten days&rsquo; prior written notice. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Specifically, in 2019, Mrs. Smolyansky
assisted management with efforts to expand the Company&rsquo;s product portfolio into non-dairy and non-food items. She provided
frequent advice to management about when and where to expand our product portfolio, strategic plans for sales and marketing expenditures
and staffing, and executive succession planning, as well as guidance relating to a roadmap for Lifeway&rsquo;s growth. Mrs. Smolyansky
also assists in the development of recipes and new products and major facility decisions. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> In 2019, Mrs. Smolyansky was paid $1,000,000
pursuant to the Consulting Agreement and $585,132 pursuant to the Endorsement Agreement. Mrs. Smolyansky did not receive any retainer
fees in her capacity as a non-employee director. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B><A NAME="a_023"></A>ITEM
14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRINCIPAL ACCOUNTANT FEES AND SERVICES.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #1F497D"> <FONT STYLE="color: Black"><B>Fees Billed
by Mayer Hoffman McCann P.C.</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> The following table sets forth the
fees for professional audit services rendered by our independent registered public accounting firm Mayer Hoffman McCann P.C. (MHM)
in connection with fiscal years ended December 31, 2019 and 2018 and fees billed for other services rendered by MHM during those
periods: </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="color: Black; font-weight: bold; text-align: center"> Fees Billed by Independent Registered Public
    Accounting Firm </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <FONT STYLE="color: Black"><B>Type
                                         of Fees</B></FONT> </P></TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2019 </TD><TD STYLE="color: Black; font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="3" STYLE="color: Black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2018 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="width: 70%; color: black; text-align: left"> (1) Audit Fees </TD><TD STYLE="width: 2%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 11%; text-align: right"> 597,369 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 2%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 11%; text-align: right"> 594,972 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> (2) Audit-Related Fees </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="text-align: left"> (3) Tax Fees </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &ndash; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"> (4) All Other Fees </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"> &nbsp; </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"> &ndash; </TD><TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD><TD STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"> &nbsp; </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"> &ndash; </TD><TD STYLE="padding-bottom: 1pt; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="padding-bottom: 2.5pt"> &nbsp; </TD><TD STYLE="padding-bottom: 2.5pt"> &nbsp; </TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"> $ </TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> 597,369 </TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"> &nbsp; </TD><TD STYLE="padding-bottom: 2.5pt"> &nbsp; </TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"> $ </TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> 594,972 </TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"> &nbsp; </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> In the above table, in accordance with
the SEC&rsquo;s definitions and rules, &ldquo;audit fees&rdquo; are fees Lifeway paid to its independent registered public accountant
for professional services in connection with the audit of our consolidated financial statements for the fiscal years ended December
31, 2019 and 2018 included in Form 10-K, for <FONT STYLE="background-color: white">the audit of our internal control over financial
reporting,</FONT> for the review of the unaudited financial statements included in Form 10-Qs within those fiscal years, and for
services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements; &ldquo;audit-related
fees&rdquo; are fees for work performed during those fiscal years for assurance and related services that are reasonably related
to the performance of the audit or review of our consolidated financial statements; &ldquo;tax fees&rdquo; are fees for work performed
during those fiscal years for tax compliance, tax advice, and tax planning; and &ldquo;all other fees&rdquo; are fees for work
performed during those fiscal years for any services not included in the first three categories. All of the services set forth
in sections (1) through (4) above were approved by the Audit and Corporate Governance Committee in accordance with its charter. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> For the fiscal years ended December
31, 2019 and 2018, we retained certain firms other than MHM for tax compliance, tax advice, tax planning and other accounting
advice. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #1F497D"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #1F497D"> <FONT STYLE="color: Black"><B>Pre-Approval
of Audit and Non-Audit Services</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Lifeway&rsquo;s Audit and Corporate
Governance Committee has adopted policies and procedures for pre-approving all non-audit work performed by its auditors. The policy
sets forth the procedures and conditions for both pre-approval of audit-related services to be performed by its auditors (assurance
and related services that are reasonably related to the performance of the auditors&rsquo; review of the financial statements
or that are traditionally performed by the independent auditor) and specific pre-approval for all other services for the current
fiscal year consistent with the SEC&rsquo;s rules on auditor independence. The Audit and Corporate Governance Committee is asked
to pre-approve the engagement of the independent auditor and the projected fees for audit services for the current fiscal year
during the first quarter of each year. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Unless a type of service has received
general pre-approval, it will require specific pre-approval by the Audit and Corporate Governance Committee if it is to be provided
by the auditors. Any proposed services exceeding pre-approved cost levels or budgeted amounts will also require specific pre-approval
by the Audit and Corporate Governance Committee. In determining whether to approve a particular audit or permitted non-audit service,
the Audit and Corporate Governance Committee will consider, among other things, whether the service is consistent with maintaining
the independence of the independent registered public accounting firm. The Audit and Corporate Governance Committee will also
consider whether the independent registered public accounting firm is best positioned to provide the most effective and efficient
service to us and whether the service might be expected to enhance our ability to manage or control risk or improve audit quality.
Specifically, the Audit and Corporate Governance Committee has not pre-approved the use of MHM for non-audit services. There was
no non-audit work performed by MHM for the fiscal years ended December 31, 2019 or December 31, 2018. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_025"></A>PART IV</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><A NAME="a_026"></A>ITEM 15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EXHIBITS, FINANCIAL STATEMENT SCHEDULES.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A list of the Financial Statements and Financial Statement Schedules filed as part of this Report is set forth in Part II, Item 8, which list is incorporated herein by reference.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial Statement Schedules &ndash; Separate financial statement schedules have been omitted either because they are not applicable or because the required information is included in the consolidated financial statements</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibits. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: left">No.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Description</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">Form</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">Period Ending</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">Exhibit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">Filing Date</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; width: 6%; text-align: left">3.1</TD><TD STYLE="width: 2%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 42%; text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316818000821/lifeway_10k-ex0301.htm">Amended and Restated Bylaws.</A></TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">10-K</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">12/31/2017</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: center">3.1</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">3/30/2018</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">3.2</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261314000203/exh3-2_17607.htm">Articles of Incorporation, as amended and currently in effect</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12/31/2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">3.2</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">4/2/2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.1</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000095013499008852/0000950134-99-008852.txt">Stock Purchase Agreement dated October 1, 1999 by and among Danone Foods, Inc., Lifeway Foods, Inc., Michael Smolyansky and certain other parties</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">0</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.1</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10/12/1999</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.2</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000095013499008852/0000950134-99-008852.txt">Stockholders&rsquo; Agreement dated October 1, 1999 by and among Danone Foods, Inc., Lifeway Foods, Inc., Michael Smolyansky and certain other parties</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">0</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.11</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10/12/1999</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.3</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000095013400000210/0000950134-00-000210.txt">Letter Agreement dated December 24, 1999</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">0</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.12</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">1/12/2000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.4</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261303000717/exh10-14.txt">Employment Agreement, dated September 12, 2002, between Lifeway Foods, Inc. and Julie Smolyansky +</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10-QSB/A No. 2</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">9/30/2002</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.14</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">4/30/2003</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.5</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261316000724/exh10-23_17915.htm">Consulting Agreement by and between the Company and Ludmila Smolyansky, dated as of March 8, 2016 +</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12/31/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.23</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">3/16/2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.6</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261316000724/exh10-24_17915.htm">Endorsement Agreement by and between the Company and Ludmila Smolyansky, dated as of March 14, 2016</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12/31/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.24</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">3/16/2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.7</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316818001273/lifeway_ex1001.htm">Amended and Restated Loan and Security Agreement dated as of May 7, 2018 among Lifeway Foods, Inc., Fresh Made, Inc., The Lifeway Kefir Shop, LLC, Lifeway Wisconsin, Inc., and CIBC Bank USA, as Lender.</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.1</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">5/11/2018</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left; width: 6%">10.8</TD><TD STYLE="text-align: left; width: 2%">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left; width: 42%"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316818003194/lifeway_8k-ex1001.htm">Employment
    Agreement by and between the Company and Amy Feldman, dated as of October 29, 2018  +</A></TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 11%">8-K</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 11%">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 9%">10.1</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 11%">11/1/2018</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.9</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316819000178/lifeway_ex1001.htm">Employment Agreement by and between the Company and Eric Hanson, dated as of January 18, 2019 +</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">1/23/2019</TD></TR>
</TABLE>

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<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left; width: 6%">10.10</TD><TD STYLE="text-align: left; width: 2%">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left; width: 42%"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316819001051/lifeway_10k-ex1001.htm" STYLE="-sec-extract: exhibit">First Modification to Amended and Restated Loan and Security Agreement dated as of April 10, 2019 among Lifeway Foods, Inc., Fresh Made, Inc., The Lifeway Kefir Shop, LLC, Lifeway Wisconsin, Inc., and CIBC Bank USA, as Lender.</A></TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 11%">10-K</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 11%">12/31/18</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 9%">10.1</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 11%">4/15/2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">10.11</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316819003940/lifeway_8k-ex1001.htm" STYLE="-sec-extract: exhibit">Second Modification to Amended and Restated Loan and Security Agreement, effective as of December 10, 2019 by and among Lifeway Foods, Inc., Fresh Made, Inc., The Lifeway Kefir Shop, LLC, Lifeway Wisconsin, Inc., and CIBC Bank USA, as Lender.</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8-K</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10.1</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12/10/2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>

<TR STYLE="background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">10.12</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261315000502/exh10-2_17887.htm" STYLE="-sec-extract: exhibit">Lifeway
    Foods, Inc. 2015 Omnibus Incentive Plan +</A></FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">8-K</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">10.2</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">12/18/15</FONT> </TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD></TR>
<TR STYLE="background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">10.13</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261315000502/exh10-3_17887.htm" STYLE="-sec-extract: exhibit">Form
    of Notice of Restricted Stock Unit Award +</A></FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">8-K</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">10.3</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">12/18/15</FONT> </TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD></TR>
<TR STYLE="background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">10.14</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261315000502/exh10-4_17887.htm" STYLE="-sec-extract: exhibit">Form
    of Notice of Performance Unit Award +</A></FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">8-K</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">10.4</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">12/18/15</FONT> </TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD></TR>
<TR STYLE="background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">10.15</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261315000502/exh10-5_17887.htm" STYLE="-sec-extract: exhibit">Form
    of Notice of Restricted Stock Award +</A></FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">8-K</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">10.5</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">12/18/15</FONT> </TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD></TR>
<TR STYLE="background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">10.16</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> <FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261315000502/exh10-5_17887.htm" STYLE="-sec-extract: exhibit">Form
    of Notice of Non-Qualified Stock Option Award +</A> </FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">8-K</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">10.6</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> <FONT STYLE="font-size: 10pt">12/18/15</FONT> </TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>

<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">14</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000107261314000203/exh14_17607.htm" STYLE="-sec-extract: exhibit">Code of Conduct and Ethics</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 10-K </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/13 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 14 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/2/2014 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">21</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316820001179/lifeway_ex2100.htm" STYLE="-sec-extract: exhibit">List of Subsidiaries of the Registrant</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 10-K </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/19 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 21 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/14/20 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">23.1</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316820001179/lifeway_ex2301.htm" STYLE="-sec-extract: exhibit">Consent of Mayer Hoffman McCann P.C.</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 10-K </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/19 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 23.1 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/14/20 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">31.1</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316820001179/lifeway_ex3201.htm" STYLE="-sec-extract: exhibit">Rule 13a-14(a)/15d-14(a) Certification of Julie Smolyansky</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"> 10-K </P>


</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/19 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 31.1 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/14/20 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">31.2</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316820001179/lifeway_ex3102.htm" STYLE="-sec-extract: exhibit">Rule 13a-14(a)/15d-14(a) Certification of Eric Hanson</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 10-K </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/19 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 31.2 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/14/20 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left"> 31.3 </TD><TD STYLE="text-align: left"> &nbsp; </TD>
    <TD STYLE="text-decoration: underline; text-align: left"> <A HREF="lifeway_ex3103.htm">Rule 13a-14(a)/15d-14(a) Certification
    of Julie Smolyansky</A> </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"></P>


</TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD>
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left"> 31.4 </TD><TD STYLE="text-align: left"> &nbsp; </TD>
    <TD STYLE="text-decoration: underline; text-align: left"> <A HREF="lifeway_ex3104.htm">Rule 13a-14(a)/15d-14(a) Certification
    of Eric Hanson</A> </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"></TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">32.1</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316820001179/lifeway_ex3201.htm" STYLE="-sec-extract: exhibit">Section 1350 Certification of Julie Smolyansky*</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 10-K </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/19 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 32.1 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/14/20 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">32.2</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: underline; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316820001179/lifeway_ex3202.htm" STYLE="-sec-extract: exhibit">Section 1350 Certification of Eric Hanson*</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 10-K </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/19 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 32.1 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/14/20 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">99.1</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: left"><A HREF="http://www.sec.gov/Archives/edgar/data/814586/000168316820001179/lifeway_ex9901.htm" STYLE="-sec-extract: exhibit">Press release dated April 14, 2020 reporting the Company&rsquo;s financial results for year ended December 31, 2019.</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 10-K </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 12/31/19 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 99.1 </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> 4/14/20 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="vertical-align: top; text-align: left">101</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Interactive Data Files</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"> &nbsp; </TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">+ Indicates a management contract or compensatory plan or arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* This exhibit was previously furnished with the Original Form
10-K, is not deemed filed with the Securities and Exchange Commission, and is not incorporated by reference into any filing of
Lifeway Foods, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made
before or after the date of the Original Form 10-K and irrespective of any general incorporation language contained in such filing.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_028"></A>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> Pursuant to the requirements of Section
13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this this Amendment No. 1 to its Annual Report
on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized. </P>

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    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LIFEWAY FOODS, INC.</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 53%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 30%">&nbsp;</TD>
    <TD STYLE="width: 16%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date: June 15,
    2020 </FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Julie Smolyansky</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Julie Smolyansky</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer, President, and Director</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.3
<SEQUENCE>2
<FILENAME>lifeway_ex3103.htm
<DESCRIPTION>SECTION 302 CERTIFICATION OF CHIEF EXECUTIVE OFFICER
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">Exhibit 31.3</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECTION 302 CERTIFICATION OF CHIEF EXECUTIVE
OFFICER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION
1350,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">I, Julie Smolyansky, certify that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">I have reviewed this Amendment No. 1 to annual report on Form 10-K of Lifeway Foods, Inc.;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date:</FONT></TD>
    <TD STYLE="width: 15%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 54%; border-bottom: black 1pt solid; text-align: justify">/s/ Julie Smolyansky</TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Julie Smolyansky</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Chief Executive Officer, President and
        Director</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(Principal Executive Officer)</P></TD>
    <TD>&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TYPE>EX-31.4
<SEQUENCE>3
<FILENAME>lifeway_ex3104.htm
<DESCRIPTION>SECTION 302 CERTIFICATION OF CHIEF FINANCIAL OFFICER
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit 31.4</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECTION 302 CERTIFICATION OF CHIEF FINANCIAL
OFFICER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION
1350,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">I, Eric Hanson, certify that:</P>

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    <TD STYLE="width: 3%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">I have reviewed this Amendment No. 1 to annual report on Form 10-K of Lifeway Foods, Inc.;</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 3%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date:</FONT></TD>
    <TD STYLE="width: 15%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
15, 2020</FONT></TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; width: 59%">/s/ Eric Hanson</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Eric Hanson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Chief Financial &amp; Accounting Officer</P></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>





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