<PAGE>

                                                                   EXHIBIT 4.2.1
                         SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (this "Agreement") is made as of August
__, 2001 between Salon Media Group, Inc., a Delaware corporation (the
"Company"), and each of the undersigned purchasers (collectively "Purchasers"
 -------                                                          ----------
and individually a "Purchaser") listed on the Schedule of Purchasers attached
                    ---------
hereto as Exhibit A. The parties hereby agree as follows:
          ---------

                                    RECITAL
                                    -------

     A.   On the terms and subject to the conditions set forth herein,
Purchasers are willing to purchase from the Company and the Company is willing
to sell to Purchasers, shares of the Company's Series A Preferred Stock and
Warrants in amounts set forth opposite each Purchaser's name on the Schedule of
Purchasers (each, an "Amount").

     B.   Rule 4350(i)(1)(D) of the NASDAQ Marketplace Rules provides that the
Company cannot sell and issue more than 20% of its current outstanding common
stock (or securities convertible into common stock) or 20% or more of the
outstanding voting power without first obtaining Stockholder Approval; the
Company and the Purchasers have therefore agreed that the Purchasers will
purchase the shares of the Company's Series A Preferred Stock, as set forth on
Exhibit A attached hereto; such shares of Series A Preferred Stock will be non-
---------
convertible and non-voting, but will automatically become convertible and be
granted voting power following Stockholder Approval (defined herein) of the
transactions contemplated hereby or upon the occurrence of certain other events.

                                   AGREEMENT
                                   ---------

     NOW, THEREFORE, in consideration of the foregoing, and the
representations, warranties, and conditions set forth below, the parties hereto,
intending to be legally bound, hereby agree as follows:

     1.   Sale and Issuance of the Shares; Consideration.  Subject to the terms
          ----------------------------------------------
and conditions hereof, at the Closing (as defined below), the Company will issue
and sell to the Purchasers and the Purchasers will purchase from the Company up
to 1,000 shares of the Company's Series A Preferred Stock, $.001 par value, (the
"Shares") at a purchase price of $4,000 per share, or an aggregate purchase
price of up to $4,000,000.  In consideration for the Shares, the Purchaser at
the Closing will pay the appropriate purchase price by delivery of a check,
payable to the order of the Company, or by wire transfer at such Closing.

     The Purchaser shall not sell or transfer any of the Shares other than to an
affiliate of Purchaser prior to the first anniversary of the Closing Date.  Any
such affiliate shall be subject to such restriction on transfer.  For the
purposes of this Agreement, an "affiliate" shall mean any partner, limited
partner or member of Purchaser or any person or entity that directly or
indirectly
<PAGE>

through one or more intermediaries controls or is controlled by or is under
common control with Purchaser.


     2.   Warrants.  The Company agrees to issue, sell and deliver to each
          --------
Purchaser, a warrant to purchase stock in substantially the form attached hereto
as Exhibit B (each, a "Warrant" and collectively, the "Warrants") to purchase
   ---------
that number of shares of the Company's Common Stock as indicated in Exhibit A
                                                                    ---------
attached hereto.

     3.   Agreement of the Company and Purchasers.  The Company and the
          ---------------------------------------
Purchasers, having adverse interests and as a result of arm's length bargaining,
agree that:

               (1)  Neither the Purchaser nor any affiliated company has
rendered any services to the Company in connection with this Agreement;

               (2)  The Warrants are not being issued as compensation;

               (3)  The aggregate fair market value of the Shares, if issued
apart from the Warrants and the aggregate fair market value of the Warrants, if
issued apart from the Shares, are set forth on Exhibit A hereto; and
                                               ---------

               (4)  All tax returns and other information returns of each party
relative to this Agreement and Warrants issued pursuant hereto shall
consistently reflect the matters agreed to in (1) through (3) above.

     4.   Closing; Delivery.
          -----------------

          4.1  Closing.  The initial closing of the sale and purchase of the
               --------
Shares and Warrants (the "Initial Closing") shall take place at the offices of
Gray Cary Ware & Freidenrich LLP, 400 Hamilton Avenue, Palo Alto, California
94301on August __, 2001 or such later date as shall be mutually acceptable to
the Company and the Purchasers (the "Initial Closing Date").  At any time on or
before the 60/th/ day following the Initial Closing, the Company shall have the
right to sell additional Shares and Warrants pursuant to this Agreement at one
or more subsequent closings (the "Subsequent Closings"), and to add additional
entities and persons as Purchasers hereunder and as parties hereto.  Each
Subsequent Closing shall take place at the offices of Gray Cary Ware &
Freidenrich LLP, 400 Hamilton Avenue, Palo Alto, California 94301, on a date or
dates determined by mutual agreement of the Company and the Purchasers
purchasing additional Shares and Warrants at such Subsequent Closing (each such
date, a "Subsequent Closing Date").  The Initial Closing and each Subsequent
Closing shall constitute and be treated as a "Closing" hereunder, and the
Initial Closing Date and each Subsequent Closing Date shall constitute and be
treated as a "Closing Date" hereunder.  Each purchaser of Shares at any
Subsequent Closing will become a party to this Agreement and to the Securities
Rights Agreement in the form attached hereto as Exhibit C (the "Rights
                                                ---------
Agreement") and will be a "Purchaser," and such purchaser's shares will be
"Shares," for all purposes of this Agreement after such Subsequent Closing.

          4.2  Delivery.  At each Closing, on the terms and subject to the
               --------
conditions hereof, each applicable Purchaser shall pay to the Company, by check
or wire transfer of
<PAGE>

immediately available funds, by delivery of evidence of the indebtedness of the
Company to be cancelled, such Purchaser's Share Purchase Price as indicated on
the Schedule of Purchasers, and in exchange for and upon receipt or confirmation
of such payment, the Company will issue and deliver to each applicable Purchaser
a stock certificate representing the number of Shares purchased by such
Purchaser and a Warrant for the number of Conversion Shares for such Purchaser.

     5.   Representations and Warranties of the Company.  The Company hereby
          ---------------------------------------------
represents and warrants to the Purchaser that:

          5.1  Organization and Standing.  The Company is a corporation duly
               -------------------------
organized, validly existing and in good standing under the laws of the State of
Delaware and has all requisite corporate power and authority to carry on its
businesses as now conducted and as proposed to be conducted.

          5.2  Corporate Power.  The Company has all requisite corporate power
               ---------------
necessary for the authorization, execution and delivery of this Agreement, the
Rights Agreement and the Warrants, to sell and issue the Shares hereunder, and
to carry out and perform all of its obligations under the terms of this
Agreement, the Rights Agreement, the Warrants and the Certificate of Designation
of Preferences and Rights of the Series A Preferred Stock (the "Certificate of
Designation") and to carry on its business as presently conducted and as
presently proposed to be conducted, and such other agreements and instruments.
Each of the Agreement, the Rights Agreement and the Warrants is a valid and
binding obligation of the Company, enforceable in accordance with its terms,
except as the same may be limited by bankruptcy, insolvency, moratorium, and
other laws of general application affecting the enforcement of creditors'
rights.

          5.3  Capitalization.  As of August 3, 2001, the authorized capital
               --------------
stock of the Company is Fifty million (50,000,000) shares of Common Stock and
Five million (5,000,000) shares of Preferred Stock, and there are issued and
outstanding (i) 14,155,276 shares of the Common Stock, (ii) no shares of
Preferred Stock and (iii) options to purchase 4,008,720 shares of Common Stock
granted to employees pursuant to the Company's 1995 Stock Option Plan.  All such
issued and outstanding shares have been duly authorized and validly issued, are
fully paid and nonassessable, and were issued in compliance with all applicable
state and federal laws concerning the issuance of securities.  Since August 3,
2001, the Company has not issued any shares of capital stock, nor granted any
options to purchase shares of Common Stock.

          5.4  Authorization.
               -------------

               (1)  Corporate Action. All corporate action on the part of the
                    ----------------
Company, its officers, directors and stockholders necessary for the sale and
issuance of the Shares and the authorization, execution and performance of the
Company's obligations hereunder and under the Warrant has been taken.

               (2)  Valid issuance. The Shares and the Warrants, any shares of
                    --------------
stock issued upon conversion or exercise of the Warrants (collectively the
"Securities"), when issued in compliance with the provisions of this Agreement
will be validly issued, fully paid and
<PAGE>

nonassessable and will be free of restrictions on transfer other than
restrictions under the Warrants and under applicable federal and state
securities laws.

          5.5  No Preemptive Rights.  No person has any right of first refusal
               --------------------
or any preemptive rights in connection with the issuance of the Securities or
any future issuances of securities by the Company.

          5.6  Compliance with Other Instruments.  The execution, delivery and
               ---------------------------------
performance of and compliance with this Agreement or the Warrants by the
Company, and the issuance and sale of Shares will not result in any violation of
the Certificate of Incorporation or Bylaws of the Company or in any violation of
or default in any material respect under the terms of any mortgage, indenture,
contract, agreement, instrument, judgment or decree.

          5.7  Consents.  No consent, approval or authorization of or
               --------
designation, declaration or filing with any governmental authority or other
third party on the part of the Company is required in connection with: (a) the
valid execution and delivery of the Warrants; or (b) the offer, sale or issuance
of Securities.

          5.8  Offering.  In reliance on the representations and warranties of
               --------
the Purchaser in Section 6 hereof, the offer, sale and issuance of Securities in
conformity with the terms of this Agreement and the Warrants will not result in
a violation of the Securities Act of 1933, as amended (the "Securities Act"), or
                                                            --------------
any state securities laws, including the qualification or registration
requirements of applicable blue sky laws.

          5.9  Company Reports; Disclosure.
               ----------------------------

                    (a) Company Reports. For the purposes of this Agreement, the
                        ---------------
term "Company Reports" shall mean, collectively, each registration statement,
      ---------------
report, proxy statement or information statement filed with the Securities and
Exchange Commission (the "SEC" since January 1, 1999, in the form (including
                          ---
exhibits, annexes and any amendments thereto) filed with the SEC. As of their
respective dates, the Company Reports complied in all material respects with the
requirements of the Securities Act and the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), and did not contain any untrue statement of a
              ------------
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances in
which they were made, not misleading. Nothing has occurred since June 30, 2001
which would require the filing of any additional report or of any amendment to
any of the Company Reports with the SEC, or which would cause any of the Company
Reports to contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
made therein, in light of the circumstances in which they were made, not
misleading.

                    (b)  Disclosure. No representation or warranty by the
                         ----------
Company in this Agreement, or in any document or certificate furnished or to be
furnished to the Purchaser pursuant hereto or in connection with the
transactions contemplated hereby, when taken together, contains or will contain
any untrue statement of a material fact or omits or will omit to state a
material fact necessary to make the statements made herein and therein, in the
light of the circumstances under which they were made herein and therein, in the
light of the circumstances
<PAGE>

under which they were made, not misleading. The Company has either filed with
the SEC or fully provided the Purchaser with all the information necessary for
the Purchaser to decide whether to purchase the Shares.

          5.10 Small Business Concern.  The Company is a "small business"
               ----------------------
within the meaning of the Small Business Investment Act of 1958, as amended (the
"Small Business Act" or "SBA").  The information delivered by the Company on
 ------------------      ---
Small Business Administration Forms 480, 652 and 1031 in connection herewith is
accurate and complete.  The Company is not ineligible for financing by any
Federal licensee (under the Small Business Act) pursuant to Section 107.720 of
Title 13 of the Federal Regulation.  The Company acknowledges that Wasserstein
SBIC Ventures II, L.P. is a Federal licensee under the Small Business Act.

     6.   Representations and Warranties of the Purchaser and Restrictions on
          -------------------------------------------------------------------
transfer Imposed by the Securities Act.  Each Purchaser represents and warrants
--------------------------------------
to the Company as to itself as follows:

          6.1  Power.  Purchaser has all requisite corporate power necessary for
               -----
the authorization, execution and delivery of the Agreement and Warrants to which
it is a party.  Each of the Agreement and the Warrants to which the Purchaser is
a party is a valid and binding obligation of the Purchaser, enforceable against
the Purchaser in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, moratorium, and other laws of general application
affecting the enforcement of creditors' rights.

          6.2  Authorization.  All corporate action on the part of the
               -------------
Purchaser, its officers, directors and stockholders necessary for the
authorization, execution and performance of the Purchaser's obligations
hereunder and under the Warrants to which it is a party have been taken.

          6.3  Compliance with Other Instruments.  The execution, delivery and
               ---------------------------------
performance of and compliance with this Agreement and the Warrant to which
Purchaser is a party will not result in any violation of or default in any
material respect under the terms of any mortgage, indenture, contract,
agreement, instrument, judgment or decree to which the Purchaser is a party or
is otherwise subject.

          6.4  Consents.  No consent, approval or authorization of or
               --------
designation, declaration or filing with any governmental authority or other
third party on the part of the Purchaser is required in connection with the
valid execution and delivery of the Warrant to which it is a party.

          6.5  Investment Intent.  This Agreement is made with the Purchaser in
               -----------------
reliance upon the Purchaser's representation to the Company, evidenced by the
Purchaser's execution of this Agreement, that the Purchaser is acquiring the
Shares for investment for the Purchaser's own account, and not with a view to,
or for resale in connection with, any distribution or public offering thereof
within the meaning of the Securities Act.

          6.6  Shares Not Registered.  The Purchaser understands and
               ---------------------
acknowledges that the offering of the Shares pursuant to this Agreement will not
be registered under the Securities
<PAGE>

Act or qualified under applicable blue sky laws on the grounds that the offering
and sale of securities contemplated by this Agreement are exempt from
registration under the Securities Act and exempt from qualifications available
under applicable blue sky laws, and that the Company's reliance upon such
exemptions is predicated upon the Purchaser's representations set forth in this
Agreement. The Purchaser acknowledges and understands that, except for transfers
to Affiliates of the Purchaser, the Shares must be held for at least 12 months
after Closing and thereafter indefinitely unless the Shares are registered under
the Securities Act and qualified under applicable blue sky laws or an exemption
from such registration and such qualification is available.

          6.7  Knowledge and Experience.  The Purchaser (i) has such knowledge
               ------------------------
and experience in financial and business matters as to be capable of evaluating
the merits and risks of the Purchaser's prospective investment in the Shares;
(ii) has the ability to bear the economic risks of the Purchaser's prospective
investment; and (iii) has not been offered the Shares by any form of
advertisement, article, notice or other communication published in any
newspaper, magazine, or similar media or broadcast over television or radio, or
any seminar or meeting whose attendees have been invited by any such media.

          6.8  Accredited Investor.  The Purchaser is an "accredited investor"
               -------------------
as that term is defined in Rule 501(a) under the Securities Act.

          6.9  Legends.  Each certificate representing the Shares may be
               -------
endorsed with the following legends:

        (1)    Federal Legend. THE SECURITIES REPRESENTED BY THIS CERTIFICATE
               --------------
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT") AND ARE "RESTRICTED SECURITIES" AS DEFINED IN RULE 144 PROMULGATED UNDER
THE ACT. THE SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE
DISTRIBUTED EXCEPT (i) IN CONJUNCTION WITH AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SHARES UNDER THE ACT OR (ii) IN COMPLIANCE WITH RULE 144, OR (iii)
PURSUANT TO AN OPINION OF COUNSEL, THAT SUCH REGISTRATION OR COMPLIANCE IS NOT
REQUIRED AS TO SAID SALE, OFFER OR DISTRIBUTION.

        (2)    Other Legends. Any other legends required by applicable state
               -------------
blue sky laws. The Company need not register a transfer of legended Shares, and
may also instruct its transfer agent not to register the transfer of the Shares,
unless the conditions specified in each of the foregoing legends are satisfied.

   6.10 Removal of Legend and Transfer Restrictions.  Any legend endorsed
               -------------------------------------------
on a certificate pursuant to subsection 6.9(1) and the stop transfer
instructions with respect to such legend Shares shall be removed, and the
Company shall issue a certificate without such legend to the holder of such
Shares if such Shares are registered under the Securities Act and a prospectus
meeting the requirements of Section 10 of the Securities Act is available or if
such holder satisfies the requirements of Rule 144(k).

     7.   Conditions to Closing.
          ---------------------
<PAGE>

          7.1  Conditions to the Purchaser's Obligations.  The obligation of the
               -----------------------------------------
Purchaser to purchase the Securities at the Closing is subject to the
fulfillment to the Purchaser's satisfaction, on or prior to the Closing Date, of
the following conditions, any of which may be waived by the Purchaser.

               (1)  Representations and Warranties Correct; Performance of
                    ------------------------------------------------------
Obligations. The representations and warranties made by the Company in Section 6
-----------
hereof shall be true and correct when made, and shall be true and correct in all
material respects on the Closing Date with the same force and effect as if they
had been made on and as of said date (except to the extent any such
representation or warranty expressly speaks of an earlier date). The Company
shall have performed in all material respects all obligations and conditions
herein required to be performed or observed by it on or prior to the Closing
Date.

               (2)  Warrants.  The Company shall have executed each of the the
                    --------
Warrants.

               (3)  Officer's Certificate.  The Company shall have delivered a
                    ---------------------
Certificate, executed on behalf of the Company by its President, dated the
Closing Date, certifying to the fulfillment of the conditions specified in
subsection (1) of this Section 7.1.

               (4)  Secretary's Certificate. The Company shall have delivered
                    -----------------------
a Certificate, executed on behalf of the Company by its Secretary, dated the
Closing Date, certifying the Board of Directors resolutions approving the
Warrants and the issuance of the Shares, the Company's Certificate of
Designation and the Company's Bylaws.

               (5)  Nasdaq Notice.  Pursuant to Rule 4310(c)(17) of the Nasdaq
                    -------------
Marketplace Rules, the Company shall have notified Nasdaq of the issuance of
securities contemplated by this Agreement and the Warrants.

               (6)  Securities Rights Agreement. The Company and the Purchasers
                    ---------------------------
shall have entered into the Rights Agreement in the form attached hereto as
Exhibit C.
---------

               (7)  SBA Forms. The Company shall have completed, executed and
                    ---------
delivered to each Purchaser that is a "Small Business Investment Company" under
the Small Business Act, a Size Status Declaration on SBA Form 480, an Assurance
of Compliance on SBA Form 652 and the SBA Sideletter, and shall have completed
and delivered to each such Purchaser Parts A and B of a Portfolio Financing
Report on SBA Form 1031.

     7.2  Conditions to Constellation Ventures' Obligations.  The obligation of
          -------------------------------------------------
Constellation Ventures, a Purchaser listed on Exhibit A, to purchase the
Securities at the Closing is subject to the Company having received from other
Purchasers at least an aggregate of two million two hundred fifty thousand
dollars ($2,250,000) in payment for 562 Shares.  Such condition may, however, be
waived by Constellation Ventures.

     8.   Conditions to Obligations of the Company.  The Company's obligation to
          ----------------------------------------
sell and issue the shares at the Closing is subject to the fulfillment to the
satisfaction of the Company on or prior to the Closing Date of the following
condition, which may be waived by the Company:
<PAGE>

          8.1  Representations and Warranties Correct.  The representations and
               --------------------------------------
warranties made by the Purchaser in Section 6 hereof shall be true and correct
when made, and shall be true and correct on the Closing Date with the same force
and effect as if they had been made on and as of said date (except to the extent
any such representation or warranty expressly speaks of an earlier date). The
Purchaser shall have performed in all material respects all obligations and
conditions herein required to be performed or observed by it on or prior to the
Closing Date.

     9.   Affirmative Covenants of the Company.
          ------------------------------------

          9.1  Preliminary Proxy Statement.  The Company hereby covenants and
               ---------------------------
agrees that it will file a Preliminary Proxy Statement prior to August 17, 2001,
containing, amongst other things, a request for stockholder approval required
under Rule 4350(i) of the Nasdaq Marketplace Rules for the transactions
contemplated hereby (the "Stockholder Approval"); and will hold the Stockholder
Meeting no later than September 30, 2001.

          9.2  Hiring. The Company shall use its best efforts to identify and
               ------
hire an executive vice president for the Company, within 90 days of the Closing.

          9.3  Budget. The Company shall use its best efforts to limit its cash
               ------
expense budget to one million six hundred sixty thousand dollars ($1,660,000)
for the quarter beginning September 1, 2001, and ending December 31, 2001.

     10.  Miscellaneous.
          -------------

          10.1 Governing Law.  This Agreement shall be governed in all respects
               -------------
by the laws of the State of Delaware.

          10.2 Survival.  The representations, warranties, covenants and
               --------
agreements made herein shall survive the Closing of the transactions
contemplated hereby, notwithstanding any investigation made by the Purchaser.
All statements as to factual matters contained in any certificates or other
instrument delivered by or on behalf of the Company pursuant hereto or in
connection with the transactions contemplated hereby shall be deemed to be
representations and warranties by the Company hereunder as of the date of such
certificate or instrument.

          10.3 Successors and Assigns.  Except as otherwise expressly provided
               ----------------------
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the
parties hereto.

          10.4 Entire Agreement.  This Agreement and the other documents
               ----------------
delivered pursuant hereto constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof and
they supersede, merge and render void every other prior written and/or oral
understanding or agreement among or between the parties hereto.

          10.5 Notices, etc.  All notices and other communications required or
               -------------
permitted hereunder shall be in writing and shall be delivered personally,
mailed by first class mail, postage prepaid, or delivered by courier or
overnight delivery, addressed (a) if to the Purchaser, to the address such
Purchaser shall have furnished to the Company in writing or (b) if to the
<PAGE>

Company, at 22 Fourth Street, 16th Floor, San Francisco, CA 94103 Attention:
Chief Financial Officer, or at such other address as the Company shall have
furnished to the Purchaser in writing. Notices that are mailed shall be deemed
received five days after deposit in the United States mail.

          10.6  Severability.  In case any provision of this Agreement shall be
                ------------
found by a court of law to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not in any way be affected or impaired thereby.

          10.7  Finder's Fees and Other Fees.
                ----------------------------

                (1)  The Company (i) represents and warrants that it has
retained no finder or broker in connection with the transactions contemplated by
this Agreement and, (ii) hereby agrees to indemnify and to hold the Purchaser
harmless from and against any liability for commission or compensation in the
nature of a finder's fee to any broker or other person or firm (and the costs
and expenses of defending against such liability or asserted liability) for
which the Company, or any of its employees or representatives, are responsible.

                (2)  Each Purchaser (i) represents and warrants that it has
retained no finder or broker in connection with the transactions contemplated by
this Agreement and (ii) hereby agrees to indemnify and to hold the Company
harmless from and against any liability for any commission or compensation in
the nature of a finder's fee to any broker or other person or firm (and the
costs and expenses of defending against such liability or asserted liability)
for which such Purchaser, or any of its employees or representatives, are
responsible.

          10.8  Expenses.  The Company and each Purchaser shall each bear their
                --------
own expenses and legal fees in connection with the consummation of this
transaction; however, the Company shall pay the reasonable fees and expenses of
Morgan Lewis & Bockius LLP, not to exceed  $20,000, in connection with the
negotiation, execution, delivery and performance of this Agreement.

          10.9  Titles and Subtitles.  The titles of the sections and
                --------------------
subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

          10.10 Non-Recourse.  No partner, limited partner, member, officer,
                ------------
director, shareholder, employee or agent or other holder of an ownership
interest in any party to this Agreement or the Rights Agreement shall have any
liability in respect of any such party's obligations under this Agreement or the
Rights Agreement by reason of his or her status as such partner, limited
partner, member, officer, director, shareholder, employee or agent or other
holder of an ownership interest in any party to this Agreement or the Rights
Agreement. The obligations under this Agreement and the Rights Agreement shall
be limited to the assets of each of the Purchasers and shall not exceed the
Purchase Price set forth in Exhibit A hereto.
                            ---------

          10.11 Counterparts.  This Agreement may be executed in any number of
                ------------
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.
<PAGE>

          10.12  Delays or Omissions.  No delay or omission to exercise any
                 -------------------
right, power or remedy accruing to the Company or to any holder of any
securities issued or to be issued hereunder shall impair any such right, power
or remedy of the Company or such holder, nor shall it be construed to be a
waiver of any breach or default under this Agreement, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any delay or omission to exercise any right, power or remedy or any waiver
of any single breach or default be deemed a waiver of any other right, power or
remedy or breach or default theretofore or thereafter occurring.  All remedies,
either under this Agreement, or by law otherwise afforded to the Company or any
holder, shall be cumulative and not alternative.

          10.13  Attorneys' Fees.  If any action at law or in equity is
                 ---------------
necessary to enforce or interpret the terms of any of the Transaction
Agreements, the prevailing party shall be entitled to reasonable attorneys'
fees, costs and disbursements in addition to any other relief to which such
party may be entitled.

          10.14  Venue.  The parties hereby irrevocably submit to the
                 -----
jurisdiction of the courts of the State of California and the Federal courts of
the United States of America located in the State of California solely in
respect of the interpretation and enforcement of the provisions of the Warrants,
and in respect of the transactions contemplated hereby, and hereby waive, and
agree not to assert, as a defense in any action, suit or proceeding for the
interpretation or enforcement hereof or of any such document, that it is not
subject thereto or that such action, suit or proceeding may not be brought or is
not maintainable in said courts or that the venue thereof may not be appropriate
or that the Warrants may not be enforced in or by such courts, and the parties
hereto irrevocably agree that all claims with respect to such action or
proceeding shall be heard and determined in such a California state or Federal
court.  The parties hereby consent to and grant any such court jurisdiction over
the person of such parties and over the subject matter of such dispute and agree
that mailing of process or other papers in connection with any such action or
proceeding in the manner provided in Section 10.5 hereof shall be valid ad
sufficient service thereof.

     IN WITNESS WHEREOF, the parties hereto have executed this Stock and Warrant
Purchase Agreement as of the date first written above.


                                               SALON MEDIA GROUP, INC.


                                               By: _____________________________
                                               Title: __________________________

<PAGE>

                                               PURCHASER


                                               By: _____________________________
                                               Name: ___________________________
                                               Title: __________________________