EXHIBIT 10.2

REVOLVING NOTE

$5,000,000.00
Chicago, Illinois
February 6, 2009

On the Revolving Loan Maturity Date or on such earlier date as required by the
Loan Agreement (as defined below), FOR VALUE RECEIVED, the undersigned (the
“Borrowers”), jointly and severally, promise to pay to the order of The
PrivateBank and Trust Company (the “Lender”) at Lender’s office at 120 South
LaSalle Street, Chicago, Illinois 60603, or such other place as Lender may
designate from time to time hereafter, the principal amount of Five Million and
00/100 Dollars ($5,000,000.00) or, if less, the aggregate unpaid principal
amount of all Loans made by Lender under the Revolving Loan pursuant to that
certain Loan and Security Agreement dated of even date herewith by and among
Borrowers and Lender (herein, as the same may be amended, modified or
supplemented, the “Loan Agreement”) as shown on the Lender’s books and records.
All capitalized terms used herein without definition shall have the same
meanings herein as such terms are given in the Loan Agreement.

This Note evidences those certain Loans under the Revolving Loan Commitment made
from time to time to Borrowers by Lender under the Loan Agreement, and Borrowers
hereby promise to pay interest at the office described above on the Loans
evidenced hereby at the rates and at the times and in the manner specified
therefor in the Loan Agreement.

Repayments of principal hereon shall be recorded by the Lender on the Lender’s
books and records.  Borrowers agree that in any action or proceeding instituted
to collect or enforce collection of this Note, the entries so recorded on a
schedule to this Note or recorded on the books and records of the Lender shall,
absent demonstrable error, be conclusive evidence of the amount of the Loans
made by Lender to Borrowers and the interest and payments thereon.

This Note is issued by Borrowers under the terms and provisions of the Loan
Agreement and is secured by, among other things, the Collateral and the Loan
Documents and this Note and the holder hereof is entitled to all of the benefits
and security provided for thereby or referred to therein, to which reference is
hereby made for a statement thereof.  This Note may be declared to be, or be and
become, due prior to its expressed maturity, voluntary prepayments may be made
hereon, and certain prepayments are required to be made hereon, all in the
events, on the terms and with the effects provided in the Loan Agreement.

All of Lender’s rights and remedies are cumulative and non-exclusive.  The
acceptance by Lender of any partial payment made hereunder after the time when
any of the Obligations hereunder become due and payable will not establish a
custom, or waive any rights of Lender to enforce prompt payment
thereof.  Lender’s failure to require strict performance by Borrowers of any
provision of this Note shall not waive, affect or diminish any right of Lender
thereafter to demand strict compliance and performance therewith.  Any waiver of
an Event of Default hereunder shall not suspend, waive or affect any other Event
of Default hereunder.  Except as provided in the Loan Agreement, each Borrower
and every endorser waives presentment, demand and protest and notice of
presentment, protest, default, non-payment, maturity, release,
 
A-1

--------------------------------------------------------------------------------

compromise, settlement, extension or renewal of this Note.  Except as provided
in the Loan Agreement, each Borrower further waives any and all notice or demand
to which such Borrower might be entitled with respect to this Note by virtue of
any applicable statute or law (to the extent permitted by law)

THIS NOTE SHALL BE DELIVERED AND ACCEPTED IN AND SHALL BE DEEMED TO BE CONTRACTS
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS (BUT
GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS) APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES.

ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH
THIS NOTE OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS OR IN THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN
THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE LENDER FROM BRINGING SUIT
OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION.  EACH OF THE BORROWERS
HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF
THE STATE OF ILLINOIS AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH
ABOVE.  EACH OF THE BORROWERS FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR
WITHOUT THE STATE OF ILLINOIS.  EACH OF THE BORROWERS HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

THE LENDER AND EACH OF THE BORROWERS, AFTER CONSULTING OR HAVING HAD THE
OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS NOTE, THE LOAN AGREEMENT
OR ANY OTHER LOAN DOCUMENT, ANY OF THE OTHER OBLIGATIONS, THE COLLATERAL, OR ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR NOTE DELIVERED OR WHICH MAY IN THE FUTURE BE
DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING
RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF
CONDUCT OR COURSE OF DEALING IN WHICH THE LENDER AND ANY OF THE BORROWERS ARE
ADVERSE PARTIES, AND EACH AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THIS PROVISION IS A MATERIAL
 
A-2

--------------------------------------------------------------------------------

INDUCEMENT FOR THE LENDER GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWERS.

[signature page attached]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
A-3

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, this Revolving Note has been duly executed as of the day and
year first written above.

 
LIFEWAY FOODS, INC.

By:   /s/ Julie Smolyansky

--------------------------------------------------------------------------------

Title:   President and CEO

--------------------------------------------------------------------------------

 
FRESH MADE, INC.

By:   /s/ Edward Smolyansky

--------------------------------------------------------------------------------

Title:    President

--------------------------------------------------------------------------------

 
LFI ENTERPRISES, INC.

By:   /s/ Julie Smolyansky

--------------------------------------------------------------------------------

Title:   President and CEO

--------------------------------------------------------------------------------

 
HELIOS NUTRITION LIMITED

By:   /s/ Julie Smolyansky

--------------------------------------------------------------------------------

Title:   President and CEO

--------------------------------------------------------------------------------

 
PRIDE OF MAIN STREET DAIRY, LLC

By:   /s/ Julie Smolyansky

--------------------------------------------------------------------------------

Title:   President and CEO

--------------------------------------------------------------------------------

 
STARFRUIT, LLC

By:   /s/ Julie Smolyansky

--------------------------------------------------------------------------------

Title:   President and CEO

--------------------------------------------------------------------------------

 
 
 

 

 
 
A-4

--------------------------------------------------------------------------------