Danone S.A. → Lifeway Foods, Inc. LWAY

Item 4 of the Original Schedule 13D is hereby amended and supplemented to add the following: As previously reported, on December 23, 2024, Julie Smolyansky, the Chairperson, Chief Executive Officer, President and Secretary of the Issuer, disclosed in a filing with the Securities and Exchange Commission that Lifeway issued 283,337 shares of its common stock to Ms. Smolyansky (the "Smolyansky Share Issuance"). In the filing, Ms. Smolyansky conceded that the Smolyansky Share Issuance required the consent of Danone North America PBC under the terms of the Stockholders' Agreement to which Danone North America PBC, the Issuer and members of the Smolyansky family (including Ms. Smolyansky) have been party since 1999 (the "Shareholder Agreement"). However, Ms. Smolyansky stated that the Issuer, of whom Ms. Smolyansky is the Chairperson and Chief Executive Officer, now believes the Shareholder Agreement has always been void as a matter of law and was never effective in the more than 25 years since it was executed, and therefore decided to initiate the Smolyansky Share Issuance to Ms. Smolyansky without seeking or receiving the consent of Danone North America PBC. On March 3, 2025, Danone North America PBC filed a lawsuit against Lifeway and each of the members of its Board of Directors, including Ms. Smolyansky, in the Circuit Court of Cook County, Illinois, Law Division. The lawsuit alleges that the Issuer's directors breached their fiduciary duty of loyalty by choosing to enrich Ms. Smolyansky and entrench themselves as directors by knowingly approving the Smolyansky Share Issuance in violation of the Shareholder Agreement. The lawsuit also alleges that the Issuer and Ms. Smolyansky committed a breach of contract by violating the Shareholder Agreement through the Smolyansky Share Issuance (and, in the alternative, that their conduct was barred by promissory estoppel). As stated in Danone North America PBC's initial notice letter sent to Lifeway following the Smolyansky Share Issuance and previously reported in Amendment No. 7, Danone North America PBC intends to hold Ms. Smolyansky and the Issuer's Board of Directors liable for their breaches of fiduciary duties. The Reporting Persons waive none of their rights under the Shareholder Agreement, and demand that Lifeway and Ms. Smolyansky comply with their respective longstanding, legally required obligations by rescinding the Smolyansky Share Issuance and committing to abide by the Shareholder Agreement. The Reporting Persons intend to continue to vigorously pursue the claims set forth in the lawsuit and any related claims, and to continue to assert and enforce their rights under the Shareholder Agreement. The Reporting Persons may in the future take any actions in connection therewith that they deem appropriate.