Document:

Exhibit 10.6

     THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON CONVERSION OF THIS NOTE HAVE
NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR ANY STATE
SECURITIES  LAWS.  THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF
THIS NOTE MAY NOT BE SOLD,  OFFERED  FOR SALE,  PLEDGED OR  HYPOTHECATED  IN THE
ABSENCE OF AN  EFFECTIVE  REGISTRATION  STATEMENT AS TO THIS NOTE UNDER SAID ACT
AND ANY APPLICABLE  STATE  SECURITIES  LAWS OR AN OPINION OF COUNSEL  REASONABLY
SATISFACTORY TO SYNERGY BRANDS INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

                          SECURED CONVERTIBLE TERM NOTE

     FOR VALUE  RECEIVED,  SYNERGY  BRANDS  INC.,  a Delaware  corporation  (the
"Borrower"),  hereby  promises  to pay to  LAURUS  MASTER  FUND,  LTD.,  c/o M&C
Corporate Services Limited,  P.O. Box 309 GT, Ugland House, South Church Street,
George Town, Grand Cayman,  Cayman Islands,  Fax: 345-949-8080 (the "Holder') or
its  registered  assigns or  successors in interest,  on order,  the sum of FIVE
HUNDRED  THOUSAND  Dollars  ($500,000),  together  with any  accrued  and unpaid
interest hereon, on June 21, 2008 (the "Maturity Date") if not sooner paid.

     Capitalized  terms used herein without  definition  shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the date hereof between the Borrower and the Holder (the "Purchase Agreement").

     The following terms shall apply to this Note:

                                    ARTICLE I
                             INTEREST & AMORTIZATION

     1.1(a)  Interest  Rate.  Subject to Sections 4.10 and 5.6 hereof,  interest
payable on this Note  shall  accrue at a rate per annum  (the  "Interest  Rate")
equal to the "prime  rate"  published  in The Wall Street  Journal  from time to
time,  plus three (3%).  The prime rate shall be  increased  or decreased as the
case may be for each  increase or decrease in the prime rate in an amount  equal
to such  increase or decrease in the prime rate;  each change to be effective as
of the day of the change in such rate.  Subject to Section  1.1(b)  hereof,  the
Interest Rate shall not be less than eight  percent  (8.0%) and shall not exceed
twelve percent (12%). Interest shall be (i) calculated on the basis of a 360 day
year, (ii) payable  monthly,  in arrears,  commencing on July 1, 2005 and on the
first  business day of each  consecutive  calendar  month  thereafter  until the
Maturity Date (and on the Maturity  Date),  whether by acceleration or otherwise
(each, a "Repayment Date").  Notwithstanding  anything to the contrary contained
in Section  1.1(a) or (b), in no event shall the Interest Rate be less than zero
percent (0%).

     1.1 (b) Interest Rate Adjustment.  The Interest Rate shall be calculated on
the last  business day of each month  hereafter  until the Maturity Date (each a
"Determination Date") and shall be subject to adjustment as set forth herein. If
(i) the Borrower shall have registered the shares of the Borrower's common stock
underlying each of the conversion of the Note and that certain warrant issued to
Holder on a  registration  statement  declared  effective by the  Securities and
Exchange  Commission (the "SEC"), and (ii) the market price (the "Market Price")
of the Common Stock as reported by Bloomberg,  L.P. on the Principal  Market (as
defined  below)  for  the  five  (5)  trading  days   immediately   preceding  a
Determination  Date exceeds the then  applicable  Fixed  Conversion  Price by at
least twenty five percent (25%),  the Interest Rate for the succeeding  calendar
month shall  automatically be reduced by 200 basis points (200 b.p.) (2.0.%) for
each  incremental  twenty five percent (25%) increase in the Market Price of the
Common  Stock  above the then  applicable  Fixed  Conversion  Price.  If (i) the
Borrower shall not have  registered  the shares of the  Borrower's  common stock
underlying the conversion of the Note and that certain  warrant issued to Holder
on a  registration  statement  declared  effective by the SEC and which  remains
effective,  and (ii)  the  Market  Price of the  Common  Stock  as  reported  by
Bloomberg,  L.P.  on  the  principal  market  for  the  five  (5)  trading  days
immediately  preceding a Determination  Date exceeds the then  applicable  Fixed
Conversion  Price by at least twenty five percent  (25%),  the Interest Rate for
the  succeeding  calendar  month shall  automatically  be decreased by 100 basis
points  (100 b.p.)  (1.0.%)  for each  incremental  twenty  five  percent  (25%)
increase in the Market Price of the Common Stock above the then applicable Fixed
Conversion Price.

     1.2  Minimum  Monthly  Principal  Payments.   Amortizing  payments  of  the
aggregate  principal  amount  outstanding  under  this  Note  at any  time  (the
"Principal Amount") shall begin on December 1, 2005 and shall recur on the first
business day of each succeeding  month thereafter until the Maturity Date (each,
an  "Amortization  Date").  Subject to Article 3 below,  beginning  on the first
Amortization  Date,  the Borrower  shall make monthly  payments to the Holder on
each Repayment Date, each in the amount of $16,666.67, together with any accrued
and unpaid interest to date on such portion of the Principal Amount plus any and
all other  amounts  which are then owing  under this Note but have not been paid
(collectively,   the  "Monthly  Amount").  Any  Principal  Amount  that  remains
outstanding on the Maturity Date shall be due and payable on the Maturity Date.

<PAGE>

                                   ARTICLE II
                              CONVERSION REPAYMENT

     2.1 (a) Payment of Monthly  Amount in Cash or Common  Stock.  Each month by
the tenth  (10th)  business  day prior to each  Amortization  Date (the  "Notice
Date"),  the Holder  shall  deliver to Borrower a written  notice in the form of
Exhibit B attached  hereto  converting  the Monthly  Amount  payable on the next
Repayment Date in either cash or Common Stock, or a combination of both (each, a
"Repayment Notice").  If a Repayment Notice is not delivered by the Holder on or
before the  applicable  Notice Date for such Repayment  Date,  then the Borrower
shall pay the Monthly  Amount due on such Repayment Date in cash. Any portion of
the Monthly Amount paid in cash on a Repayment Date, shall be paid to the Holder
an amount equal to 103% of the principal  portion of the Monthly  Amount due and
owing to Holder on the Repayment  Date. If the Holder  converts all or a portion
of the Monthly Amount in shares of Common Stock as provided  herein,  the number
of such shares to be issued by the Borrower to the Holder on such Repayment Date
shall be the number determined by dividing (x) the portion of the Monthly Amount
to be  paid  in  shares  of  Common  Stock,  by (y) the  then  applicable  Fixed
Conversion  Price. For purposes  hereof,  the initial "Fixed  Conversion  Price"
means $3.00.

     (b) Monthly Amount Conversion Guidelines.  Subject to Sections 2.1(a), 2.2,
and 3.2 hereof,  the Holder shall convert all or a portion of the Monthly Amount
due on each  Repayment  Date in shares of Common  Stock if the  average  closing
price of the Common Stock as reported by Bloomberg, L.P. on the Principal Market
for the five (5) trading days  immediately  preceding  such  Repayment  Date was
greater than 115% of the Fixed Conversion Price,  provided,  however,  that such
conversions  shall not exceed twenty five percent (25%) of the aggregate  dollar
trading  volume  of the  Common  Stock  for  the  five  (5) day  trading  period
immediately  preceding  delivery of a Notice of Conversion to the Borrower.  Any
part of the  Monthly  Amount  due on a  Repayment  Date that the  Holder has not
converted  into shares of Common  Stock shall be paid by the Borrower in cash on
such  Repayment  Date. Any part of the Monthly Amount due on such Repayment Date
which must be paid in cash (as a result of the closing price of the Common Stock
on one or more of the five (5) trading days preceding the  applicable  Repayment
Date being less than 115% of the Fixed  Conversion  Price) shall be paid in cash
at the rate of 103% of the Monthly Amount  otherwise due on such Repayment Date,
within three (3) business days of the applicable Repayment Date.

     2.2 No  Effective  Registration.  Notwithstanding  anything to the contrary
herein,  none of the Borrower's  obligations to the Holder may be converted into
Common Stock unless (i) either (x) an effective current  Registration  Statement
(as defined in the Registration  Rights Agreement) covering the shares of Common
Stock to be issued in connection with  satisfaction of such obligations  exists,
or (y) an  exemption  from  registration  of the Common  Stock is  available  to
pursuant  to Rule 144 of the  Securities  Act,  and  (ii) no  Event  of  Default
hereunder exists and is continuing, unless such Event of Default is cured within
any  applicable  cure period or is otherwise  waived in writing by the Holder in
whole or in part at the Holder's option.

     Any amounts  converted by the Holder  pursuant to this Section 2.2 shall be
deemed to  constitute  payments of  outstanding  fees,  interest  and  principal
arising in connection with Monthly Amounts for the remaining Repayment Dates, in
chronological order.

     2.4  Optional  Redemption  in Cash.  The  Borrower  will have the option of
prepaying  this Note  ("Optional  Redemption")  by paying to the Holder a sum of
money equal to one hundred twenty percent (120%) of the principal amount of this
Note  together  with accrued and unpaid  interest  thereon and any and all other
sums due,  accrued  or  payable to the  Holder  arising  under  this  Note,  the
Securities  Purchase  Agreement,  or  any  Related  Agreement  (the  "Redemption
Amount")  outstanding  on the day written  notice of redemption  (the "Notice of
Redemption") is given to the Holder.  The Notice of Redemption shall specify the
date for such Optional  Redemption  (the  "Redemption  Payment Date") which date
shall be seven (7) business days after the date of the Notice of Redemption (the
"Redemption Period"). A Notice of Redemption shall not be effective with respect
to any  portion  of this Note for which the  Holder  has a pending  election  to
convert  pursuant to Section  3.1, or for  conversions  initiated or made by the
Holder  pursuant to Section 3.1 during the  Redemption  Period.  The  Redemption
Amount shall be  determined as if such  Holder's  conversion  elections had been
completed  immediately  prior to the date of the  Notice of  Redemption.  On the
Redemption Payment Date, the Redemption Amount must be paid in good funds to the
Holder.  In the event the  Borrower  fails to pay the  Redemption  Amount on the
Redemption Payment Date as set forth herein, then such Redemption Notice will be
null and void.

<PAGE>

                                   ARTICLE III
                                CONVERSION RIGHTS

     3.1. Holder's  Conversion  Rights. The Holder shall have the right, but not
the obligation,  to convert all or any portion of the then aggregate outstanding
principal amount of this Note,  together with interest and fees due hereon, into
shares of Common  Stock  subject to the terms and  conditions  set forth in this
Article III. The Holder may exercise such right by delivery to the Borrower of a
written  notice of  conversion  not less than one (1) day prior to the date upon
which such conversion  shall occur.  The date upon which such  conversion  shall
occur is (the "Conversion Date").

     3.2 Conversion Limitation. Notwithstanding anything contained herein to the
contrary,  the Holder shall not be entitled to convert  pursuant to the terms of
this Note an amount that would be  convertible  into that  number of  Conversion
Shares which would exceed the difference  between the number of shares of Common
Stock  beneficially  owned by such Holder or issuable  upon exercise of warrants
held by such Holder and 4.99% of the  outstanding  shares of Common Stock of the
Borrower.  For the purposes of the immediately  preceding  sentence,  beneficial
ownership  shall be determined in accordance  with Section 13(d) of the Exchange
Act and Regulation  13d-3  thereunder.  The Holder may void the Conversion Share
limitation  described  in this  Section  3.2 upon 75 days  prior  notice  to the
Borrower  or  without  any  notice   requirement   upon  an  Event  of  Default.
Notwithstanding  anything contained herein to the contrary, the number of shares
of Common Stock issuable by the Borrower and acquirable by the Holder at a price
below $2.48 per share pursuant to the terms of this Note, the Purchase Agreement
or any Related  Agreement,  when  aggregated with (i) the shares of Common Stock
issuable  upon  conversion  of all or a portion of the Note  referred  to in the
January  2005  Purchase  Agreement  (as  defined  below) plus (ii) the shares of
Common  Stock  issuable  upon  exercise of all or a portion of the Warrant  plus
(iii) the shares of Common Stock  issuable  upon exercise of all or a portion of
the  Warrant  issued  on the  Closing  Date  under  the  January  2005  Purchase
Agreement,  shall not exceed an  aggregate of 436,012  shares of the  Borrower's
Common  Stock  (subject  to  appropriate  adjustment  for  stock  splits,  stock
dividends, or other similar  recapitalizations  affecting the Common Stock) (the
"Maximum  Common Stock  Issuance"),  unless the issuance of shares  hereunder in
excess of the  Maximum  Common  Stock  Issuance  shall  first be approved by the
Borrower's  shareholders.  If at any  point in time  and  from  time to time the
number of shares of Common Stock issued  pursuant to the terms of this Note, the
Purchase Agreement or any Related Agreement,  together with the number of shares
of Common Stock that would then be issuable by the Borrower to the Holder in the
event of a  conversion  or  exercise  pursuant  to the terms of this  Note,  the
Purchase  Agreement or any Related  Agreement,  would exceed the Maximum  Common
Stock  Issuance but for this Section 3.2,  the Borrower  shall  promptly  call a
shareholders  meeting to solicit  shareholder  approval  for the issuance of the
shares of Common Stock hereunder in excess of the Maximum Common Stock Issuance.

     3.3  Mechanics  of  Holder's  Conversion.  (a) In the event that the Holder
elects to convert this Note into Common  Stock,  the Holder shall give notice of
such  election by  delivering  an executed and  completed  notice of  conversion
("Notice of  Conversion")  to the Borrower and such Notice of  Conversion  shall
provide a  breakdown  in  reasonable  detail of the  Principal  Amount,  accrued
interest  and fees being  converted.  On each  Conversion  Date (as  hereinafter
defined) and in accordance with its Notice of Conversion,  the Holder shall make
the appropriate reduction to the Principal Amount,  accrued interest and fees as
entered in its records and shall provide  written notice thereof to the Borrower
within two (2) business  days after the  Conversion  Date.  Each date on which a
Notice of  Conversion  is delivered or  telecopied to the Borrower in accordance
with the provisions  hereof shall be deemed a Conversion  Date (the  "Conversion
Date").  A form of Notice of  Conversion to be employed by the Holder is annexed
hereto as Exhibit A.

<PAGE>

     (b) Pursuant to the terms of the Notice of  Conversion,  the Borrower  will
issue  instructions  to the transfer agent  accompanied by an opinion of counsel
within two (2)  business  days of the date of the  delivery  to  Borrower of the
Notice  of  Conversion  and shall  cause  the  transfer  agent to  transmit  the
certificates  representing the Conversion  Shares to the Holder by crediting the
account of the Holder's  designated broker with the Depository Trust Corporation
("DTC") through its Deposit  Withdrawal Agent Commission  ("DWAC") system within
three  (3)  business  days  after  receipt  by the  Borrower  of the  Notice  of
Conversion (the "Delivery  Date"). In the case of the exercise of the conversion
rights set forth herein the  conversion  privilege  shall be deemed to have been
exercised  and the  Conversion  Shares  issuable upon such  conversion  shall be
deemed to have been  issued  upon the date of  receipt  by the  Borrower  of the
Notice of Conversion. The Holder shall be treated for all purposes as the record
holder of such Common  Stock,  unless the Holder  provides the Borrower  written
instructions to the contrary.

     3.4 Conversion Mechanics.

     (a) The number of shares of Common Stock to be issued upon each  conversion
of this Note shall be  determined  by dividing that portion of the principal and
interest  and  fees  to be  converted,  if any,  by the  then  applicable  Fixed
Conversion  Price.  In the event of any  conversions  of  outstanding  principal
amount under this Note in part  pursuant to this Article III,  such  conversions
shall be  deemed to  constitute  conversions  of  outstanding  principal  amount
applying to Monthly Amounts for the remaining  Repayment Dates in  chronological
order.

     (b) The  Fixed  Conversion  Price  and  number  and kind of shares or other
securities to be issued upon  conversion  is subject to adjustment  from time to
time upon the occurrence of certain events, as follows:

     A. Stock Splits,  Combinations and Dividends. If the shares of Common Stock
are  subdivided or combined into a greater or smaller number of shares of Common
Stock,  or if a dividend is paid on the Common Stock in shares of Common  Stock,
the Fixed Conversion Price or the Conversion Price, as the case may be, shall be
proportionately  reduced in case of  subdivision  of shares or stock dividend or
proportionately  increased in the case of  combination  of shares,  in each such
case by the ratio which the total number of shares of Common  Stock  outstanding
immediately after such event bears to the total number of shares of Common Stock
outstanding immediately prior to such event.

     B. During the period the conversion right exists, the Borrower will reserve
from its authorized and unissued  Common Stock a sufficient  number of shares to
provide for the issuance of Common Stock upon the full  conversion of this Note.
The Borrower represents that upon issuance, such shares will be duly and validly
issued, fully paid and non-assessable.  The Borrower agrees that its issuance of
this Note shall constitute full authority to its officers,  agents, and transfer
agents who are charged with the duty of executing and issuing stock certificates
to execute and issue the necessary  certificates for shares of Common Stock upon
the conversion of this Note.

<PAGE>

     C. Share  Issuances.  Subject to the provisions of this Section 3.4, if the
Borrower  shall at any time prior to the  conversion or repayment in full of the
Principal Amount issue any shares of Common Stock or securities convertible into
Common  Stock  to a person  other  than  the  Holder  (except  (i)  pursuant  to
Subsections  A  or B  above;  (ii)  pursuant  to  options,  warrants,  or  other
obligations  to issue  shares  outstanding  on the date hereof,  which  options,
warrants  or other  obligations  are  either (i) set forth in the  Exchange  Act
Filings,  (ii) set forth in a Schedule to the  Purchase  Agreement  and/or (iii)
disclosed  in writing to the Holder);  or (iii)  pursuant to options that may be
issued under any employee  incentive  stock option  and/or any  qualified  stock
option plan adopted by the Borrower) for a  consideration  per share (the "Offer
Price")  less  than the  Fixed  Conversion  Price in  effect at the time of such
issuance,  then the Fixed  Conversion  Price shall be immediately  reset to such
lower Offer Price at the time of issuance of such securities.

     D.   Reclassification,   etc.  If  the  Borrower  at  any  time  shall,  by
reclassification  or  otherwise,  change  the  Common  Stock  into the same or a
different  number of  securities  of any class or classes,  this Note, as to the
unpaid Principal Amount and accrued interest thereon, shall thereafter be deemed
to evidence the right to purchase an adjusted number of such securities and kind
of  securities  as would have been  issuable  as the result of such  change with
respect to the Common Stock immediately prior to such  reclassification or other
change.

     3.5 Issuance of New Note.  Upon any partial  conversion of this Note, a new
Note  containing the same date and provisions of this Note shall, at the request
of the Holder, be issued by the Borrower to the Holder for the principal balance
of this Note and  interest  which  shall not have been  converted  or paid.  The
Borrower will pay no costs,  fees or any other  consideration  to the Holder for
the production and issuance of a new Note.

                                   ARTICLE IV
                                EVENTS OF DEFAULT

     Upon the  occurrence  and  continuance  of an Event of  Default  beyond any
applicable grace period, the Holder may make all sums of principal, interest and
other fees then remaining unpaid hereon and all other amounts payable  hereunder
immediately due and payable.  In the event of such an acceleration,  within five
(5) days after written notice from Holder to Borrower (each  occurrence  being a
"Default Notice Period") the amount due and owing to the Holder shall be 120% of
the outstanding  principal  amount of the Note (plus accrued and unpaid interest
and fees,  if any) (the  "Default  Payment").  If, with  respect to any Event of
Default,  the Borrower cures the Event of Default,  the Event of Default will be
deemed to no longer  exist and any rights and remedies of Holder  pertaining  to
such Event of Default will be of no further force or effect. The Default Payment
shall be applied  first to any fees due and  payable to Holder  pursuant  to the
Note or the Related  Agreements,  then to accrued and unpaid interest due on the
Note and then to outstanding principal balance of the Note.

<PAGE>

     The  occurrence  of any of the  following  events set forth in Sections 4.1
through 4.10, inclusive, is an "Event of Default":

     4.1 Failure to Pay Principal, Interest or other Fees. The Borrower fails to
pay when due any  installment  of  principal,  interest  or other fees hereon in
accordance  herewith , and in any such case,  such failure shall  continue for a
period of five (5) days following the date upon which any such payment was due.

     4.2 Breach of  Covenant.  The  Borrower  breaches any covenant or any other
term  or  condition  of this  Note or the  Purchase  Agreement  in any  material
respect,  or the Borrowers or any of its  Subsidiaries  breaches any covenant or
any other term or  condition of any Related  Agreement  in any material  respect
and, any such case, such breach,  if subject to cure,  continues for a period of
twenty (20) days after the occurrence thereof.

     4.3  Breach  of  Representations  and  Warranties.  Any  representation  or
warranty made by the Borrower in this Note or the Purchase Agreement,  or by the
Borrower or any of its Subsidiaries in any Related Agreement, shall, in any such
case,  be false or  misleading  in any  material  respect  on the date that such
representation or warranty was made or deemed made.

     4.4 Receiver or Trustee. The Borrower or any of its Subsidiaries shall make
an  assignment  for the  benefit  of  creditors,  or apply for or consent to the
appointment  of a receiver  or trustee for it or for a  substantial  part of its
property  or  business;  or  such a  receiver  or  trustee  shall  otherwise  be
appointed.

     4.5 Judgments.  Any money judgment,  writ or similar final process shall be
entered or filed against the Borrower or any of its Subsidiaries or any of their
respective  property or other assets for more than $150,000 in the aggregate for
all such money  judgments,  writs or similar final  processes,  and shall remain
unvacated, unbonded or unstayed for a period of forty five (45) days.

     4.6  Bankruptcy.  Bankruptcy,  insolvency,  reorganization  or  liquidation
proceedings  or other  proceedings or relief under any bankruptcy law or any law
for the relief of debtors  shall be instituted by or against the Borrower or any
of its Subsidiaries.

     4.7  Stop  Trade.  An SEC stop  trade  order or  Principal  Market  trading
suspension of the Common Stock shall be in effect for five (5) consecutive  days
or five (5) days during a period of ten (10) consecutive days,  excluding in all
cases a  suspension  of all trading on a  Principal  Market,  provided  that the
Borrower shall not have been able to cure such trading  suspension within thirty
(30) days of the notice  thereof or list the Common  Stock on another  Principal
Market  within sixty (60) days of such notice.  The  "Principal  Market" for the
Common Stock shall include the NASD OTC Bulletin Board,  NASDAQ SmallCap Market,
NASDAQ  National  Market  System,  American  Stock  Exchange,  or New York Stock
Exchange  (whichever  of the  foregoing  is at the  time the  principal  trading
exchange or market for the Common Stock).

<PAGE>

     4.8 Failure to Deliver Common Stock or Replacement Note. The Borrower shall
fail (i) to timely  deliver  Common  Stock to the Holder  pursuant to and in the
form  required by this Note,  and Section 9 of the Purchase  Agreement,  if such
failure  to timely  deliver  Common  Stock  shall not be cured  within  five (5)
business  days or (ii) to deliver a  replacement  Note to Holder within ten (10)
business days  following  the required  date of such  issuance  pursuant to this
Note, the Purchase  Agreement or any Related  Agreement (to the extent  required
under such agreements).

     4.9 Default Under Related  Agreements or Other  Agreements.  The occurrence
and  continuance of (I) any Event of Default  (under,  and as defined in (i) the
Purchase  Agreement,  (ii) any Related Agreement,  (iii) that certain Securities
Purchase Agreement, dated as of April 2, 2004, by and between the Holder and the
Borrower (as amended,  modified or  supplemented  from time to time,  the "April
2004 Purchase  Agreement"),  (iv) any Related Agreement (as defined in the April
2004 Purchase Agreement),  (v) that certain Securities Purchase Agreement, dated
as of January 25, 2005,  by and between the Holder and the Borrower (as amended,
modified  or  supplemented  from  time  to  time,  the  "January  2005  Purchase
Agreement")  or (vi) any  Related  Agreement  (as  defined in the  January  2005
Purchase  Agreement))  or (II) any event of default (or similar  term) under any
agreement or document  relating to any indebtedness  incurred by the Borrower or
any of its Subsidiaries from IIG Capital LLC or any of its affiliates.

     4.10 Change in Control.  Any "person" or "group" (as such terms are used in
Sections  13(d) and 14(d) of the  Securities  Exchange Act of 1934),  other than
Lloyd Miller or Mair Faibish,  shall hold 40% or more of the outstanding  voting
equity interests of the Borrower (on a fully diluted basis).

     4.11 [Good  Standing.  The Borrower  shall fail to provide,  on or prior to
March  31,  2005,  evidence  satisfactory  to the  Purchaser  that it is in good
standing  under the laws of the State of  Delaware.][Discuss;  is the Company in
good standing?]

                           DEFAULT RELATED PROVISIONS

     4.12 Payment Grace Period.  Following the occurrence and  continuance of an
Event of Default beyond any applicable cure period hereunder, the Borrower shall
pay the Holder a default  interest  rate of four  percent  (4%) per annum on all
amounts due and owing under the Note,,  which default  interest shall be payable
upon demand.

     4.13 Conversion Privileges.  The conversion privileges set forth in Article
III shall remain in full force and effect  immediately  from the date hereof and
until this Note is paid in full.

     4.14 Cumulative Remedies. The remedies under this Note shall be cumulative.

<PAGE>

                                    ARTICLE V
                                  MISCELLANEOUS

     5.1 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.

     5.2 Notices.  Any notice herein  required or permitted to be given shall be
in writing and shall be deemed  effectively given: (a) upon personal delivery to
the party notified, (b) when sent by confirmed telex or facsimile if sent during
normal  business hours of the recipient,  if not, then on the next business day,
(c) five days after having been sent by  registered  or certified  mail,  return
receipt  requested,  postage  prepaid,  or (d)  one  day  after  deposit  with a
nationally  recognized  overnight  courier,  specifying next day delivery,  with
written  verification  of  receipt.  All  communications  shall  be  sent to the
Borrower  at  the  address  provided  in  the  Purchase  Agreement  executed  in
connection  herewith,  and to the Holder at the address provided in the Purchase
Agreement  for such  Holder,  with a copy to John E.  Tucker,  Esq.,  825  Third
Avenue,  14th Floor, New York, New York 10022,  facsimile number (212) 541-4434,
or at such other address as the Borrower or the Holder may designate by ten days
advance written notice to the other parties hereto. A Notice of Conversion shall
be deemed given when made to the Borrower pursuant to the Purchase Agreement.

     5.3 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 or supplemented, then as so amended or supplemented, and any
successor instrument issued pursuant to Section 3.5 hereof, as it may be amended
or supplemented.

     5.4  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 Purchase  Agreement.  This Note shall not be assigned by the
Borrower without the consent of the Holder.

     5.5  Governing  Law.  This  Note  shall be  governed  by and  construed  in
accordance with the laws of the State of New York,  without regard to principles
of  conflicts  of laws.  Any action  brought by either  party  against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the state of
New York.  Both  parties and the  individual  signing this Note on behalf of the
Borrower  agree to submit to the  jurisdiction  of such courts.  The  prevailing
party  shall  be  entitled  to  recover  from the  other  party  its  reasonable
attorney's  fees and  costs.  In the event  that any  provision  of this Note is
invalid or unenforceable  under any applicable statute or rule of law, then such
provision  shall  be  deemed  inoperative  to the  extent  that it may  conflict
therewith  and shall be deemed  modified to conform with such statute or rule of
law. Any such provision which may prove invalid or  unenforceable  under any law
shall  not  affect  the  validity,  unenforceability  or  meaning  of any  other
provision of this Note . Nothing  contained herein shall be deemed or operate to
preclude the Holder from bringing suit or taking other legal action  against the
Borrower in any other  jurisdiction to collect on the Borrower's  obligations to
Holder, to realize on any collateral or any other security for such obligations,
or to enforce a judgment or other court in favor of the Holder.

<PAGE>

     5.6 Maximum Payments. Nothing contained herein shall be deemed to establish
or require the  payment of a rate of interest or other  charges in excess of the
maximum  permitted  by  applicable  law.  In the event that the rate of interest
required to be paid or other charges  hereunder exceed the maximum  permitted by
such law,  any  payments in excess of such  maximum  shall be  credited  against
amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

     5.7 Security Interest and Guarantee. The Holder has been granted a security
interest in certain  assets of the Borrower and its  Subsidiaries  as more fully
described  in the 2004  Master  Security  Agreement  and the 2004  Stock  Pledge
Agreement  in each  case  dated as of  April 2,  2004.  The  obligations  of the
Borrower under this Note are guaranteed by certain  Subsidiaries of the Borrower
pursuant to the 2004 Subsidiary Guaranty dated as of April 2, 2004.

     5.8   Construction.   Each  party   acknowledges  that  its  legal  counsel
participated in the preparation of this Note and, therefore, stipulates that the
rule of construction  that  ambiguities are to be resolved  against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against the other.

     5.9 Cost of Collection. If default is made in the payment of this Note, the
Borrower  shall  pay  to  Holder  reasonable  costs  of  collection,   including
reasonable attorney's fees.

       [Balance of page intentionally left blank; signature page follows.]

<PAGE>

     IN WITNESS  WHEREOF,  the Borrower has caused this Convertible Term Note to
be signed in its name effective as of this 21st day of June 2005.

                                      SYNERGY BRANDS INC.

                                      By:________________________________
                                      Name:______________________________
                                      Title:_______________________________

WITNESS:

_______________________________

<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

     (To be  executed  by the Holder in order to convert all or part of the Note
into Common Stock

[Name and Address of Holder]

     The Undersigned hereby converts $_________ of the principal due on [specify
applicable  Repayment  Date] under the  Convertible  Term Note issued by SYNERGY
BRANDS INC. dated June __, 2005 by delivery of Shares of Common Stock of SYNERGY
BRANDS INC. on and  subject to the  conditions  set forth in Article III of such
Note.

1.       Date of Conversion         _______________________

2.       Shares To Be Delivered:    _______________________

                                    By:_______________________________
                                    Name:_____________________________
                                    Title:______________________________

<PAGE>

                                    EXHIBIT B

                                CONVERSION NOTICE

     (To be  executed by the Holder in order to convert all or part of a Monthly
Amount into Common Stock)

[Name and Address of Holder]

     Holder hereby  converts  $_________  of the Monthly  Amount due on [specify
applicable  Repayment  Date] under the  Convertible  Term Note issued by SYNERGY
BRANDS INC. dated June __, 2005 by delivery of Shares of Common Stock of SYNERGY
BRANDS INC. on and  subject to the  conditions  set forth in Article III of such
Note.

1.       Fixed Conversion Price:    $_______________________

2.       Amount to be paid:         $_______________________

3.       Shares To Be Delivered (2 divided by 1):    __________________

4.       Cash payment to be made by Borrower :       $_____________________

Date: ____________                       LAURUS  MASTER FUND, LTD.

                                         By:_______________________________
                                         Name:_____________________________
                                         Title:______________________________EXHIBIT 10.7

                                    AMENDMENT

     This AMENDMENT  (this  "Amendment")  is entered into by and between SYNERGY
BRANDS INC., a Delaware  corporation  (the  "Company"),  and LAURUS MASTER FUND,
LTD., a Cayman Islands  company  ("Laurus") as of June 21, 2005, for the purpose
of amending the terms of (i) that certain Secured  Convertible  Term Note, dated
April 2,  2004  issued  by the  Company  to  Laurus  (as  amended,  modified  or
supplemented from time to time,  the "April 2004 Term Note"),  (ii) that certain
Secured  Convertible  Term Note, dated January 25, 2005 issued by the Company to
Laurus (as amended,  modified or  supplemented  from time to time,  the "January
2005 Term Note"), (iii) that certain Securities Purchase Agreement,  dated as of
January 25, 2005, by and between the Company and Laurus (as amended, modified or
supplemented   from  time  to  time,  the  "January  2005  Securities   Purchase
Agreement") and (iv) that certain  Registration  Rights  Agreement,  dated as of
January 25, 2005 by and between the Company and Laurus (as amended,  modified or
supplemented from time to time, the "January 2005 Registration Rights Agreement"
and, together with the January 2005 Securities Purchase  Agreement,  the January
2005  Term Note and the  April  2004 Term  Note,  the  "Documents"  and each,  a
"Document").  Capitalized  terms used herein without  definition  shall have the
meanings  ascribed to such terms in the April 2004 Term Note,  the January  2005
Term Note, the January 2005  Securities  Purchase  Agreement or the January 2005
Registration Rights Agreement, as applicable.

     WHEREAS,  the Company and Laurus have agreed to make certain changes to the
April 2004 Term Note, the January 2005 Term Note and the January 2005 Securities
Purchase Agreement as set forth herein;

     NOW,  THEREFORE,  in  consideration  of the  above,  and for other good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

<PAGE>

     1. The  definition  of "Fixed  Conversion  Price"  set forth in each of the
April 2004 Term Note and the  January  2005 Term Note is hereby  amended to mean
$3.00 per share of Common Stock of the Company (subject to further adjustment as
provided by the terms of each of the April 2004 Term Note and the  January  2005
Term Note, respectively).

     2. The Company  hereby agrees to, on or prior to June 30, 2005, if required
by  applicable  law,  file  a  Rule  424(b)   supplement  (the   "Post-Effective
Supplement")  to its  Registration  Statement  (as  defined in the  Registration
Rights Agreement referred to in the Purchase Agreement defined in the Note) with
the Securities and Exchange  Commission  (the "SEC")  relating to the April 2004
Term  Note and the  warrants  issued  in  connection  therewith  (the  "Existing
Registration  Statement"),  which  Post-Effective  Supplement  states  the Fixed
Conversion  Price  applicable to the April 2004 Term Note after giving effect to
this Amendment.

     3.  Section  4.9 of the April 2004 Term Note is hereby  amended by deleting
Section 4.9 thereof and inserting new following new Section 4.9 in lieu thereof:

     "4.9 Default Under Related  Agreements or Other Agreements.  The occurrence
and  continuance  of (A) any Event of Default under and as defined in any of (i)
the  Purchase  Agreement,  (ii)  any  Related  Agreement,   (iii)  that  certain
Securities Purchase Agreement,  dated as of January 25, 2005, by and between the
Borrower and the Holder (as amended, modified or supplemented from time to time,
the "January 2005 Securities  Purchase  Agreement"),  (iv) any Related Agreement
(as defined in the January 2005 Securities Purchase Agreement), (v) that certain
Securities  Purchase  Agreement,  dated as of June 21, 2005,  by and between the
Borrower and the Holder (as amended, modified or supplemented from time to time,
the "June 2005 Securities  Purchase  Agreement"),  or (vi) any Related Agreement
(as defined in the June 2005 Securities  Purchase Agreement) or (B) any event of
default  (or  similar  term) under any  agreement  or  document  relating to any
indebtedness  incurred  by the  Borrower  or any of its  Subsidiaries  from  IIG
Capital LLC or any of its affiliates."

     4. Section 4.9 of the January 2005 Term Note is hereby  amended by deleting
Section 4.9 thereof and inserting new following new Section 4.9 in lieu thereof:

     "4.9 Default Under Related  Agreements or Other Agreements.  The occurrence
and  continuance  of (A) any Event of Default under and as defined in any of (i)
the  Purchase  Agreement,  (ii)  any  Related  Agreement,   (iii)  that  certain
Securities  Purchase  Agreement,  dated as of April 2, 2004,  by and between the
Borrower and the Holder (as amended, modified or supplemented from time to time,
the "April 2004 Securities Purchase Agreement"),  (iv) any Related Agreement (as
defined in the April  2004  Securities  Purchase  Agreement),  (v) that  certain
Securities  Purchase  Agreement,  dated as of June 21, 2005,  by and between the
Borrower and the Holder (as amended, modified or supplemented from time to time,
the "June 2005 Securities  Purchase  Agreement"),  or (vi) any Related Agreement
(as defined in the June 2005 Securities  Purchase Agreement) or (B) any event of
default  (or  similar  term) under any  agreement  or  document  relating to any
indebtedness  incurred  by the  Borrower  or any of its  Subsidiaries  from  IIG
Capital LLC or any of its affiliates."

<PAGE>

     5.  Section  4.12 of each of the April 2004 Term Note and the January  2004
Term Note is hereby  amended by deleting  the text "two  percent (2%) per month"
appearing  therein and  inserting the text "four percent (4%) per month" in lieu
thereof.

     6. Section 4.1 of the January 2005 Securities  Purchase Agreement is hereby
amended by deleting  clause (iii) thereof and inserting the following new clause
(iii) in lieu thereof:

     "(iii) the Registration  Rights Agreement  relating to the Securities dated
as of the date  hereof  between  the  Company  and the  Purchaser  (as  amended,
modified  or  supplemented   from  time  to  time,  the   "Registration   Rights
Agreement")"

     7.  The  definition  of  "Filing  Date"  set  forth  in  the  January  2005
Registration  Rights  Agreement is hereby amended by deleting said definition in
its entirety and inserting the following new definition in lieu thereof:

     "Filing Date" means, with respect to (i) the initial Registration Statement
required to be filed hereunder, a date no later than July 21, 2005 and (ii) with
respect  to  shares  of  Common  Stock  issuable  to the  Holder  as a result of
adjustments  to the Fixed  Conversion  Price made pursuant to Section 3.4 of the
Secured Convertible Term Note or adjustments to the Exercise Price made pursuant
to Section 4 of the Warrant or other  adjustments to the Fixed  Conversion Price
or Exercise Price,  thirty (30) days after the occurrence such event or the date
of any such adjustment.

     8. This  Amendment  shall be effective as of the date hereof  following the
execution of same by each of the Company and Laurus.

     9. Except as specifically  set forth in this Amendment,  there are no other
amendments  to any of the  Documents,  and all of the  other  forms,  terms  and
provisions of each of the Documents shall remain in full force and effect.

     10. The Company  hereby  represents  and  warrants to Laurus that as of the
date hereof all  representations,  warranties  and covenants  made by Company in
connection  with the  Documents  and the  agreement  related  thereto  are true,
correct and  complete and all of Company's  covenant  requirements  set forth in
such Documents and the agreements related thereto have been met.

     11.  This  Amendment  shall be binding  upon the  parties  hereto and their
respective  successors  and permitted  assigns and shall inure to the benefit of
and be  enforceable  by each  of the  parties  hereto  and  its  successors  and
permitted assigns.  THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH AND GOVERNED BY THE LAW OF THE STATE OF  NEW YORK.  This  Amendment  may be
executed in any number of counterparts,  each of which shall be an original, but
all of which shall constitute one instrument.

               [The remainder of this page is intentionally blank]

<PAGE>

     IN  WITNESS  WHEREOF,  each of the  Company  and  Laurus  has  caused  this
Amendment to be signed in its name effective as of this 21st day of June 2005.

                                                     SYNERGY BRANDS INC.

                                                     By:_________________
                                                          Name:
                                                          Title:

                                                     LAURUS MASTER FUND, LTD.

                                                     By:__________________
                                                     Name:
                                                     Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]