Document:

Exhibit 10.2

     THE SECURITY  REPRESENTED  BY THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. ANY
TRANSFER OF SUCH SECURITY WILL BE INVALID UNLESS A REGISTRATION  STATEMENT UNDER
THE ACT AND AS REQUIRED BY BLUE SKY LAWS IS IN EFFECT AS TO SUCH  TRANSFER OR AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

                                 PHS Group Inc.

                             Secured Promissory Note

Note No. 2007-01
$3,250,000.00                                                   January 19, 2007

     FOR VALUE  RECEIVED,  subject to the terms and  conditions  of this Secured
Promissory Note (the "Note"),  PHS GROUP INC., a Pennsylvania  corporation  with
its principal  offices located at 223 Underhill Blvd,  Syosset,  New York, 11971
(the  "Borrower"),  hereby promises to pay to the order of LLOYD I. MILLER,  III
(the "Holder") with his principal  office located at 4550 Gordon Drive,  Naples,
Florida,  34102,  the  principal  sum of THREE  MILLION,  TWO  HUNDRED AND FIFTY
THOUSAND  dollars  ($3,250,000.00)  on January 15, 2012 or, if such day is not a
regular Business Day, on the next Business Day thereafter,  with all accrued but
unpaid interest (as provided below) to such date (the "Maturity Date").  Subject
to the terms and  conditions of this Note,  the Borrower also promises to pay to
the Holder interest  accrued on the outstanding  unpaid  principal amount hereof
until such principal amount is paid at the rate of 11.25% per annum, compounding
quarterly,  from the date hereof.  Said  interest  shall become due quarterly in
arrears and shall be payable on the last day of each calendar  quarter (each, an
"Interest  Payment  Date") in respect  of the  immediately  preceding  completed
calendar  quarter.  The first  Interest  Payment  Date  will be March 31,  2007.
Notwithstanding  the  foregoing,  the  interest  rate set forth  above  shall be
reduced  to a rate of 11.00%  per annum  (the  "Reduced  Rate")  upon the Holder
obtaining  a  first  priority  secured  interest  in all of  the  assets  of the
Borrower,   Synergy  Brands  Inc.  (the  "Parent   Company")  and  Gran  Reserve
Corporation.  In order for the Reduced Rate to be applicable,  the Borrower must
provide  written  notice  to the  Holder  evidencing  that  all  prior  security
interests  granted  to  IIG  Capital  LLC  (the  "IIG  Security  Interests")  in
connection with or related to the IIG Loan Agreement (as such term is defined in
the  Securities  Purchase  Agreement)  have been duly  terminated  and are of no
further  force and  effect.  Such  notice  shall be subject  to the  independent
confirmation  of the  Holder  that  in its  sole  discretion  the  IIG  Security
Interests have been duly terminated and are of no further force and effect. From
and after the date upon which the Holder provides written notice to the Borrower
confirming  that the IIG  Security  Interests  have  been duly  terminated,  the
Secured Notes will begin accruing  interest at the Reduced Rate.  Principal will

                                       1

<PAGE>

be amortized  over ten years and  payable,  as set forth on Schedule A, in equal
monthly  installments  on the last day of each month  beginning  on January  31,
2007, with the balance to be paid in full on the Maturity Date. In the event any
payment is not timely paid when due,  interest shall accrue on such late payment
at a per annum rate of eighteen  percent  (18%) from and  including  the date of
such late payment to (but excluding) the date such late payment is paid in full.
All payments due hereunder  (whether of principal or interest)  shall be payable
in lawful money of the United States in immediately available funds.

     This Note is one of the Notes issued  pursuant to that  certain  Securities
Purchase Agreement dated as of the date hereof,  among the Borrower,  the Parent
Company and the purchasers named therein (the "Securities  Purchase  Agreement")
and shall be entitled to the  benefits  thereof.  The Holder has been  granted a
security interest in certain assets of the Borrower, the Parent Company, and its
Subsidiaries  as more  fully  described  in that  certain  Security,  Pledge and
Guaranty  Agreement (the "Security  Agreement") dated as of the date hereof. The
obligations of the Borrower under this Note have also been guaranteed by certain
Subsidiaries of the Parent Company  pursuant to and as set forth in the Security
Agreement.  The Holder of this Note is also  entitled to the rights and benefits
granted  pursuant to that certain  Subordination  and  Intercreditor  Agreement,
dated as of the date  hereof,  by and among the  Borrower,  the Parent  Company,
certain Subsidiaries thereto,  Laurus Master Fund, Ltd., the Holder and Milfam I
L.P.

     1. Definitions.  Unless the context otherwise requires, the following terms
shall have the following respective meanings:

     "Borrower" has the meaning  ascribed to such term in the first paragraph of
this Note.

     "Business Day" means any day of the week other than Saturday, Sunday or any
other  day of the  week on which  commercial  banks  in New  York,  New York are
authorized or required by law to close.

     "Event of Default" has the meaning ascribed to such term in Section 4(a) of
this Note.

     "Holder"  has the meaning  ascribed to such term in the first  paragraph of
this Note.

     "Maturity  Date"  has  the  meaning  ascribed  to such  term  in the  first
paragraph of this Note.

     "Note" has the meaning ascribed to such term in the first paragraph of this
instrument.

                                       2

<PAGE>

     "Security  Agreement"  has the meaning  ascribed to such term in the second
paragraph of this Note.

     "Securities  Purchase  Agreement" has the meaning  ascribed to such term in
the second paragraph of this Note.

     "Subsidiaries"  has the  meaning  ascribed  to such term in the  Securities
Purchase Agreement.

     2. Accounting Terms. All accounting terms not specifically  defined in this
Note shall be construed in  accordance  with United  States  generally  accepted
accounting  principles and, if applicable,  consistent with those applied in the
preparation of the financial statements of the Borrower.

     3.  Prepayment.  The Note may be paid prior to the Maturity  Date  provided
that prior to such  repayment  the  Borrower  provides  the Holder with five (5)
Business Days' advance written notice.

     4. Events of Default.

     (a) Events Constituting An Event of Default. Any of the events set forth in
Section 1.11 of the Security Purchase  Agreement,  which section is incorporated
herein by reference, shall constitute an "Event of Default" under this Note.

     (b) Consequences of an Event of Default. Upon the occurrence of an Event of
Default or at any time  thereafter,  the Holder may, by notice to the  Borrower,
declare the entire unpaid principal amount of the Note, all interest accrued and
unpaid thereon and all other amounts payable under this Note to be forthwith due
and payable,  whereupon the Note, all such accrued interest and all such amounts
will become and be forthwith due and payable (unless there will have occurred an
Event of Default under Section 1.11(i) of the Securities Purchase Agreement,  in
which case all such amounts will  automatically  become due and payable) without
offset or counterclaim of any kind and without presentment,  demand,  protest or
further  notice of any kind, and without regard to the running of the statute of
limitations, all of which are by this Note expressly waived by the Borrower.

     5. General Matters.

     (a)  Applicable  Law. This Note shall be governed by the internal laws (and
not the law of conflicts) of the State of New York.

     (b) Fees and  Expenses.  In the event that any suit or action is instituted
to enforce any provision  under this Note, the prevailing  party in such dispute
shall be entitled to recover from the losing party all fees,  costs and expenses
of enforcing  any right of such  prevailing  party under or with respect to this
Note,  including  without  limitation,  such  reasonable  fees and  expenses  of

                                       3

<PAGE>

attorneys and accountants,  which shall include,  without limitation,  all fees,
costs and  expenses of appeals.  Notwithstanding  the  foregoing,  the  Borrower
agrees to pay and hold Holder harmless against  liability for the payment of the
reasonable  fees  and  expenses  of  Holder  (including,   without   limitation,
reasonable attorneys' fees and expenses and out of pocket expenses of Holder and
its  representatives,  including,  without  limitation,  fees and  expenses  for
travel, background investigations and outside consultants) arising in connection
with any refinancing or restructuring of the credit arrangements  provided under
this  Note in the  nature of a  "work-out"  or  pursuant  to any  insolvency  or
bankruptcy  proceedings.  If  default is made in the  payment of this Note,  the
Borrower  shall  pay to  Holder's  costs  of  collection,  including  reasonable
attorney's fees.

     (c)  Amendment  or Waiver.  Any term of this Note may be  amended,  and the
observance  of any term of this Note may be  waived  (either  generally  or in a
particular  instance  and either  retroactively  or  prospectively)  only by the
written consent of the Holder.

     (d) Headings.  The headings in this Note are for purposes of convenience of
reference only, and shall not be deemed to constitute a part of this Note.

     (e) Notices.  All  notices,  requests,  consents  and other  communications
required  or  permitted  hereunder  shall be in writing  (including  telecopy or
similar  writing) and shall be sent to the address of the party set forth in the
Securities  Purchase   Agreement.   Any  notice,   request,   consent  or  other
communication  hereunder  shall be deemed to have been given and received on the
day on  which  it is  delivered  (by  any  means  including  personal  delivery,
overnight air courier, United States mail) or telecopied (or, if such day is not
a  Business  Day or if the  notice,  request,  consent or  communication  is not
telecopied  during  business  hours of the intended  recipient,  at the place of
receipt,  on the next following Business Day). Any of the parties hereto may, by
notice given hereunder, designate any further or different address and/or number
to which subsequent  notices or other  communications  shall be sent. Unless and
until such written  notice is received,  the  addresses  and numbers as provided
herein shall be deemed to continue in effect for all purposes hereunder.

     (f) Failure or  Indulgence  Not Waiver.  No failure or delay on the part of
the Holder  hereof in the exercise of any power,  right or  privilege  hereunder
shall operate as a waiver thereof,  nor shall any single or partial  exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other  right,  power or  privilege.  All  rights  and  remedies  existing
hereunder  are  cumulative  to, and not  exclusive  of,  any rights or  remedies
otherwise available.

     (g) Amendment Provision. The term "Note" and all reference thereto, as used
throughout this instrument,  shall mean this instrument as originally  executed,
or if later amended,  supplemented or modified, then as so amended, supplemented
or modified.

                                       4

<PAGE>

     (h)  Assignability.  This Note shall be binding  upon the  Borrower and its
successors  and  assigns,  and shall  inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements  of the  Securities  Purchase  Agreement.  This  Note  shall not be
assigned and none of the obligations related hereunder shall be delegated by the
Borrower without the prior written consent of the Holder.

     (i) Usury  Limitation.  In no event  shall the amount  paid or agreed to be
paid to the Holder for the use or forbearance of money to be advanced  hereunder
exceed the highest lawful rate permissible under the then applicable usury laws.
If it is  hereafter  determined  by a court of competent  jurisdiction  that the
interest  payable  hereunder  is in excess of the  amount  which the  Holder may
legally collect under the then applicable usury laws, such amount which would be
excessive  interest  shall be  applied to the  payment  of the unpaid  principal
balance due  hereunder  and not to the payment of interest or, if all  principal
shall previously have been paid, promptly repaid by the Holder to the Borrower.

     (j) Severability. Every provision of this Note is intended to be severable.
If any term or provision hereof is declared by a court of competent jurisdiction
to be illegal or invalid,  such illegal or invalid  term or provision  shall not
affect  the  balance  of the  terms  and  provisions  hereof,  which  terms  and
provisions shall remain binding and enforceable.

     (k) Certain Borrower  Waivers.  The Borrower and any endorsers of this Note
hereby waive diligence,  presentment,  protest,  demand and notice of every kind
and, to the fullest  extent  permitted by law, the right to plead any statute of
limitations as a defense to any demand hereunder.

                  [Remainder of Page Intentionally Left Blank]

                                       5

<PAGE>

     IN WITNESS WHEREOF,  the Borrower has caused this Note to be executed as of
the day and year first above written.

                                     PHS GROUP INC.,
                                     a Pennsylvania corporation

                                     By:

                                     Name:

                                     Title:

                                       6Exhibit 10.3

     THE SECURITY  REPRESENTED  BY THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. ANY
TRANSFER OF SUCH SECURITY WILL BE INVALID UNLESS A REGISTRATION  STATEMENT UNDER
THE ACT AND AS REQUIRED BY BLUE SKY LAWS IS IN EFFECT AS TO SUCH  TRANSFER OR AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

                                 PHS Group Inc.

                             Secured Promissory Note

Note No. 2007-02
$3,250,000.00                                                   January 19, 2007

     FOR VALUE  RECEIVED,  subject to the terms and  conditions  of this Secured
Promissory Note (the 'Note'),  PHS GROUP INC., a Pennsylvania  corporation  with
its principal  offices located at 223 Underhill Blvd,  Syosset,  New York, 11971
(the  "Borrower"),  hereby  promises  to pay to the order of MILFAM I L.P.  (the
"Holder")  with its  principal  office  located at 4550  Gordon  Drive,  Naples,
Florida,  34102,  the  principal  sum of THREE  MILLION,  TWO  HUNDRED AND FIFTY
THOUSAND  dollars  ($3,250,000.00)  on January 15, 2012 or, if such day is not a
regular Business Day, on the next Business Day thereafter,  with all accrued but
unpaid interest (as provided below) to such date (the 'Maturity Date").  Subject
to the terms and  conditions of this Note,  the Borrower also promises to pay to
the Holder interest  accrued on the outstanding  unpaid  principal amount hereof
until such principal amount is paid at the rate of 11.25% per annum, compounding
quarterly,  from the date hereof.  Said  interest  shall become due quarterly in
arrears and shall be payable on the last day of each calendar  quarter (each, an
"Interest  Payment  Date") in respect  of the  immediately  preceding  completed
calendar  quarter.  The first  Interest  Payment  Date  will be March 31,  2007.
Notwithstanding  the  foregoing,  the  interest  rate set forth  above  shall be
reduced  to a rate of 11.00%  per annum  (the  "Reduced  Rate")  upon the Holder
obtaining  a  first  priority  secured  interest  in all of  the  assets  of the
Borrower,   Synergy  Brands  Inc.  (the  "Parent   Company")  and  Gran  Reserve
Corporation.  In order for the Reduced Rate to be applicable,  the Borrower must
provide  written  notice  to the  Holder  evidencing  that  all  prior  security
interests  granted  to  IIG  Capital  LLC  (the  "IIG  Security  Interests")  in
connection with or related to the IIG Loan Agreement (as such term is defined in
the  Securities  Purchase  Agreement)  have been duly  terminated  and are of no
further  force and  effect.  Such  notice  shall be subject  to the  independent
confirmation  of the  Holder  that  in its  sole  discretion  the  IIG  Security
Interests have been duly terminated and are of no further force and effect. From
and after the date upon which the Holder provides written notice to the Borrower
confirming  that the IIG  Security  Interests  have  been duly  terminated,  the
Secured Notes will begin accruing  interest at the Reduced Rate.  Principal will

<PAGE>

be amortized  over ten years and  payable,  as set forth on Schedule A, in equal
monthly  installments  on the last day of each month  beginning  on January  31,
2007, with the balance to be paid in full on the Maturity Date. In the event any
payment is not timely paid when due,  interest shall accrue on such late payment
at a per annum rate of eighteen  percent  (18%) from and  including  the date of
such late payment to (but excluding) the date such late payment is paid in full.
All payments due hereunder  (whether of principal or interest)  shall be payable
in lawful money of the United States in immediately available funds.

     This Note is one of the Notes issued  pursuant to that  certain  Securities
Purchase Agreement dated as of the date hereof,  among the Borrower,  the Parent
Company and the purchasers named therein (the "Securities  Purchase  Agreement")
and shall be entitled to the  benefits  thereof.  The Holder has been  granted a
security interest in certain assets of the Borrower,  the Parent Company and its
Subsidiaries  as more  fully  described  in that  certain  Security,  Pledge and
Guaranty  Agreement (the "Security  Agreement") dated as of the date hereof. The
obligations of the Borrower under this Note have also been guaranteed by certain
Subsidiaries of the Parent Company  pursuant to and as set forth in the Security
Agreement.  The Holder of this Note is also  entitled to the rights and benefits
granted  pursuant to that certain  Subordination  and  Intercreditor  Agreement,
dated as of the date  hereof,  by and among the  Borrower,  the Parent  Company,
certain Subsidiaries thereto,  Laurus Master Fund, Ltd., the Holder and Lloyd I.
Miller, III.

     1. Definitions.  Unless the context otherwise requires, the following terms
shall have the following respective meanings:

     "Borrower" has the meaning  ascribed to such term in the first paragraph of
this Note.

     "Business Day" means any day of the week other than Saturday, Sunday or any
other  day of the  week on which  commercial  banks  in New  York,  New York are
authorized or required by law to close.

     "Event of Default" has the meaning ascribed to such term in Section 4(a) of
this Note.

     "Holder"  has the meaning  ascribed to such term in the first  paragraph of
this Note.

     "Maturity  Date"  has  the  meaning  ascribed  to such  term  in the  first
paragraph of this Note.

     "Note" has the meaning ascribed to such term in the first paragraph of this
instrument.

                                       2

<PAGE>

     "Security  Agreement" has the meaning  ascribed to such term in the second
paragraph of this Note.

     "Securities  Purchase  Agreement" has the meaning  ascribed to such term in
the second paragraph of this Note.

     "Subsidiaries"  has the  meaning  ascribed  to such term in the  Securities
Purchase Agreement.

     2. Accounting Terms. All accounting terms not specifically  defined in this
Note shall be construed in  accordance  with United  States  generally  accepted
accounting  principles and, if applicable,  consistent with those applied in the
preparation of the financial statements of the Borrower.

     3.  Prepayment.  The Note may be paid prior to the Maturity  Date  provided
that prior to such  repayment  the  Borrower  provides  the Holder with five (5)
Business Days' advance written notice.

     4. Events of Default.

     (a) Events Constituting An Event of Default. Any of the events set forth in
Section 1.11 of the Security Purchase  Agreement,  which section is incorporated
herein by reference, shall constitute an "Event of Default" under this Note.

     (b) Consequences of an Event of Default. Upon the occurrence of an Event of
Default or at any time  thereafter,  the Holder may, by notice to the  Borrower,
declare the entire unpaid principal amount of the Note, all interest accrued and
unpaid thereon and all other amounts payable under this Note to be forthwith due
and payable,  whereupon the Note, all such accrued interest and all such amounts
will become and be forthwith due and payable (unless there will have occurred an
Event of Default under Section 1.11(i) of the Securities Purchase Agreement,  in
which case all such amounts will  automatically  become due and payable) without
offset or counterclaim of any kind and without presentment,  demand,  protest or
further  notice of any kind, and without regard to the running of the statute of
limitations, all of which are by this Note expressly waived by the Borrower.

     5. General Matters.

     (a)  Applicable  Law. This Note shall be governed by the internal laws (and
not the law of conflicts) of the State of New York.

     (b) Fees and  Expenses.  In the event that any suit or action is instituted
to enforce any provision  under this Note, the prevailing  party in such dispute
shall be entitled to recover from the losing party all fees,  costs and expenses
of enforcing  any right of such  prevailing  party under or with respect to this

                                       3

<PAGE>

Note,  including  without  limitation,  such  reasonable  fees and  expenses  of
attorneys and accountants,  which shall include,  without limitation,  all fees,
costs and  expenses of appeals.  Notwithstanding  the  foregoing,  the  Borrower
agrees to pay and hold Holder harmless against  liability for the payment of the
reasonable  fees  and  expenses  of  Holder  (including,   without   limitation,
reasonable attorneys' fees and expenses and out of pocket expenses of Holder and
its  representatives,  including,  without  limitation,  fees and  expenses  for
travel, background investigations and outside consultants) arising in connection
with any refinancing or restructuring of the credit arrangements  provided under
this  Note in the  nature of a  "work-out"  or  pursuant  to any  insolvency  or
bankruptcy  proceedings.  If  default is made in the  payment of this Note,  the
Borrower  shall  pay to  Holder's  costs  of  collection,  including  reasonable
attorney's fees.

     (c)  Amendment  or Waiver.  Any term of this Note may be  amended,  and the
observance  of any term of this Note may be  waived  (either  generally  or in a
particular  instance  and either  retroactively  or  prospectively)  only by the
written consent of the Holder.

     (d) Headings.  The headings in this Note are for purposes of convenience of
reference only, and shall not be deemed to constitute a part of this Note.

     (e) Notices.  All  notices,  requests,  consents  and other  communications
required  or  permitted  hereunder  shall be in writing  (including  telecopy or
similar  writing) and shall be sent to the address of the party set forth in the
Securities  Purchase   Agreement.   Any  notice,   request,   consent  or  other
communication  hereunder  shall be deemed to have been given and received on the
day on  which  it is  delivered  (by  any  means  including  personal  delivery,
overnight air courier, United States mail) or telecopied (or, if such day is not
a  Business  Day or if the  notice,  request,  consent or  communication  is not
telecopied  during  business  hours of the intended  recipient,  at the place of
receipt,  on the next following Business Day). Any of the parties hereto may, by
notice given hereunder, designate any further or different address and/or number
to which subsequent  notices or other  communications  shall be sent. Unless and
until such written  notice is received,  the  addresses  and numbers as provided
herein shall be deemed to continue in effect for all purposes hereunder.

     (f) Failure or  Indulgence  Not Waiver.  No failure or delay on the part of
the Holder  hereof in the exercise of any power,  right or  privilege  hereunder
shall operate as a waiver thereof,  nor shall any single or partial  exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other  right,  power or  privilege.  All  rights  and  remedies  existing
hereunder  are  cumulative  to, and not  exclusive  of,  any rights or  remedies
otherwise available.

     (g) Amendment Provision. The term "Note" and all reference thereto, as used
throughout this instrument,  shall mean this instrument as originally  executed,
or if later amended,  supplemented or modified, then as so amended, supplemented
or modified.

                                       4

<PAGE>

     (h)  Assignability.  This Note shall be binding  upon the  Borrower and its
successors  and  assigns,  and shall  inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements  of the  Securities  Purchase  Agreement.  This  Note  shall not be
assigned and none of the obligations related hereunder shall be delegated by the
Borrower without the prior written consent of the Holder.

     (i) Usury  Limitation.  In no event  shall the amount  paid or agreed to be
paid to the Holder for the use or forbearance of money to be advanced  hereunder
exceed the highest lawful rate permissible under the then applicable usury laws.
If it is  hereafter  determined  by a court of competent  jurisdiction  that the
interest  payable  hereunder  is in excess of the  amount  which the  Holder may
legally collect under the then applicable usury laws, such amount which would be
excessive  interest  shall be  applied to the  payment  of the unpaid  principal
balance due  hereunder  and not to the payment of interest or, if all  principal
shall previously have been paid, promptly repaid by the Holder to the Borrower.

     (j) Severability. Every provision of this Note is intended to be severable.
If any term or provision hereof is declared by a court of competent jurisdiction
to be illegal or invalid,  such illegal or invalid  term or provision  shall not
affect  the  balance  of the  terms  and  provisions  hereof,  which  terms  and
provisions shall remain binding and enforceable.

     (k) Certain Borrower  Waivers.  The Borrower and any endorsers of this Note
hereby waive diligence,  presentment,  protest,  demand and notice of every kind
and, to the fullest  extent  permitted by law, the right to plead any statute of
limitations as a defense to any demand hereunder.

                  [Remainder of Page Intentionally Left Blank]

                                       5

<PAGE>

     IN WITNESS WHEREOF,  the Borrower has caused this Note to be executed as of
the day and year first above written.

                           PHS GROUP INC.,
                           a Pennsylvania corporation

                           By:

                           Name:

                           Title:

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]