Document:

EXHIBIT 4.2.4
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                          SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (this "Agreement") is made as of
September 13, 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
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     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 through one or more intermediaries controls or is controlled by or is
under common control with Purchaser.

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     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 60th 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

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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).

<PAGE>

     7. CONDITIONS TO CLOSING.

           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 n 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:_________________________

                                         PURCHASER

                                         By:____________________________

                                         Name:__________________________

                                         Title:_________________________EXHIBIT 4.2.5
                                                                   -------------

                           SECURITIES RIGHTS AGREEMENT

            This SECURITIES RIGHTS AGREEMENT (this "Agreement") is entered into
as of September 13, 2001 by and among Salon Media Group, Inc., a Delaware
corporation (the "Company"), and the undersigned purchasers of Series A
Preferred Stock of the Company and the holders of Warrants to purchase Common
Stock (the "Purchasers") listed on EXHIBITS A AND B hereto. The Company and such
holders are sometimes referred to herein collectively as the "Parties" or each
individually as a "Party."

                                    RECITALS
                                    --------

            WHEREAS, certain stockholders and warrant holders of the Company
hold registration rights pursuant to that certain Fourth Amended and Restated
Rights Agreement dated January 12, 2000 (the "Current Rights Agreement");

            WHEREAS, the Securities Purchase Agreement dated September 13, 2001
(the "Purchase Agreement") between the Company and the Purchasers provides that
a condition to the Purchasers' obligations thereunder is that such Purchasers
shall enter into this Agreement which grants Purchasers certain registration
rights consistent with but subordinate to the registration rights granted under
the Current Rights Agreement; and

            WHEREAS, in order to induce the Company and the Purchasers to enter
into the Purchase Agreement, the parties hereto desire to enter into this
Agreement.

                                    AGREEMENT

            In consideration of the foregoing and of the mutual promises and
covenants contained herein, the Parties agree as follows:

            1. Registration Rights.

               1.1 Certain Definitions. As used in this Agreement, the following
terms shall have the following respective meanings:

                  (a) "Commission" shall mean the Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act.

                  (b) "Holder" means any person or persons to whom Registrable
Securities were originally issued or permitted transferees under Section 1.11
hereof who hold Registrable Securities.

                  (c) "Registrable Securities" means (i) the shares of the
Company's Series A Preferred Stock issued and sold by the Company pursuant to
the Purchase Agreement and Common Stock issued or issuable upon conversion of
such Series A Preferred Stock, and

                                       1
<PAGE>

(ii) the Warrant Stock identified on EXHIBIT B and (iii) stock issued in respect
of the stock referred to in (i) and (ii) as a result of a stock split, stock
dividend, recapitalization or the like, which have not been sold to the public.
Except for subsections 1.3, 1.4, 1.9 and 2.4 of this Agreement or as otherwise
provided herein, Registrable Securities shall also mean shares of Common Stock
identified on EXHIBIT B hereto. Notwithstanding anything herein to the contrary,
securities held by a Holder shall not be Registrable Securities in the event
such Holder would be able to sell all such Registrable Securities on an
unrestricted basis and without volume limitation pursuant to Rule 144
promulgated under the Securities Act (or any successor rule).

                  (d) The terms "register," "registered" and "registration"
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act, and the declaration or ordering
of the effectiveness of such registration statement.

                  (e) "Registration Expenses" shall mean all expenses, except as
otherwise stated below, incurred by the Company in complying with Sections 1.2,
and 1.3 hereof, including, without limitation, all registration, qualification
and filing fees, printing expenses, escrow fees, fees and disbursements of
counsel for the Company, blue sky fees and expenses, the expense of any special
audits incident to or required by any such registration (but excluding the
compensation of regular employees of the Company which shall be paid in any
event by the Company) and including the reasonable fees and costs of one special
counsel for the Holders whose shares are being registered.

                  (f) "Securities Act" shall mean the Securities Act of 1933, as
amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

                  (g) "Selling Expenses" shall mean all underwriting discounts,
selling commissions and stock transfer taxes applicable to the securities
registered by the Holders and all reasonable fees and disbursements of counsel
for the selling Holders (other than those included in Registration Expenses).

                  (h) "Warrant Stock" means the shares of the Company's capital
stock issuable upon exercise of outstanding warrants issued to the Purchasers
listed on EXHIBIT B.

               1.2 Company Registration.

                  (a) Notice of Registration. If, at any time prior to June 23,
2004, the Company shall determine to register any of its securities, either for
its own account or the account of a security holder or holders, other than (i) a
registration relating solely to employee benefit plans, (ii) a registration
relating solely to a transaction under Rule 145 under the Securities Act, or
(iii) a registration effected pursuant to Section 1.3 hereof, the Company will:

                     (i) promptly give to each Holder written notice thereof;
and

                     (ii) include in such registration (and any related
qualification under blue sky laws or other compliance), and in any underwriting
involved therein, all the Registrable Securities specified in a written request
or requests, made within twenty (20) days after receipt of such written notice
from the Company, by any Holder.

                                       2
<PAGE>

                  (b) Underwriting. If the registration of which the Company
gives notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 1.2(a)(i). In such event the right of any Holder to
registration pursuant to Section 1.2 shall be conditioned upon such Holder's
participation in such underwriting to the extent provided herein. All Holders
proposing to distribute their securities through such underwriting shall
(together with the Company and the other Holders distributing their securities
through such underwriting) enter into an underwriting agreement in customary
form with the managing underwriter selected for such underwriting by the
Company, but subject to the reasonable approval of Holders holding a majority of
the Registrable Securities to be included in such registration. Notwithstanding
any other provision of this Section 1.2, if the managing underwriter determines
in its good faith judgment that marketing factors require limitation of the
number of shares to be underwritten, the managing underwriter may limit the
Registrable Securities to be included in such registration. The Company shall so
advise all Holders and the number of shares of securities that may be included
in the registration and underwriting (other than in behalf of the Company) shall
first be allocated on a pro rata basis among all Holders in proportion to the
respective amounts of the Registrable Securities held by all Holders and then,
if additional Registrable Securities may be included, among all other Holders,
in each case in proportion, as nearly as practicable, to the respective amounts
of Registrable Securities held by such Holders; provided, however, unless
otherwise agreed upon by the holders of a majority of the shares desiring to
participate in the offering, in no event shall the amount of Registrable
Securities of the Holders included in the offering be reduced below twenty
percent (20%) of the total amount of securities included in such offering. No
securities of the Company held by parties other than the Holders or the Company
shall be included in any registration and underwriting to which this Section
applies if the number of Registrable Securities that would otherwise have been
included in such registration and underwriting will thereby be limited. If any
Holder disapproves of the terms of any such underwriting, he may elect to
withdraw therefrom by written notice to the Company and the managing
underwriter.

               1.3 Registration on Form S-3.

                  (a) If any Holder or Holders holding in the aggregate not less
than ten percent of the then outstanding Registrable Securities (the "Initiating
Holders"), request that the Company file a registration statement on Form S-3
(or any successor form to Form S-3) for a public offering of shares of the
Registrable Securities the reasonably anticipated aggregate price to the public
of which would exceed $500,000, and the Company is a registrant entitled to use
Form S-3 to register the Registrable Securities for such an offering, the
Company shall use its best efforts to cause such Registrable Securities to be
registered for the offering on such form and to cause such Registrable
Securities to be qualified in such jurisdictions as the Holder or Holders may
reasonably request; provided, however, that the Company shall not be required to
effect more than one registration pursuant to this Section 1.3(a) in any six
month period.

                  (b) Notwithstanding the foregoing, the Company shall not be
obligated to take any action pursuant to Section 1.3(a):

                                       3
<PAGE>

                     (i) in any particular jurisdiction in which the Company
would be required to execute a general consent to service of process in
effecting such registration, qualification or compliance unless the Company is
already subject to service in such jurisdiction and except as may be required by
the Securities Act;

                     (ii) within 180 days after the effective date of any
registration of the Company under the Securities Act, other than a registration
relating solely to employee benefit plans or a registration relating solely to a
transaction under Rule 145 under the Securities Act; or

                     (iii) if the Company shall furnish to such Holder a
certificate signed by the President of the Company stating that in good faith
judgment of the Board of Directors it would be seriously detrimental to the
Company or its shareholders for registration statements to be filed in the near
future, then the Company's obligation to use its best efforts to file a
registration statement shall be deferred for a period not to exceed ninety days
from the receipt of the request to file such registration by such Holder,
provided that the Company may not use this right more than once in any twelve
month period.

                  (c) Underwriting. In the event that a registration pursuant to
Section 1.3 is for a registered public offering involving an underwriting, the
Company shall so advise the Holders by promptly giving written notice of the
proposed registration to all other Holders. In such event, the right of any
Holder to participate in such registration shall be conditioned upon such
Holder's participation in the underwriting arrangements required by this Section
1.3, and the inclusion of such Holder's Registrable Securities in the
underwriting to the extent requested shall be limited to the extent provided
herein.

            The Company shall (together with all Holders proposing to distribute
their securities through such underwriting) enter into an underwriting agreement
in customary form with the managing underwriter selected for such underwriting
by a majority in interest of the Initiating Holders, as applicable, but subject
to the Company's reasonable approval. Notwithstanding any other provision of
this Section 1.3, if the managing underwriter advises the Initiating Holders, in
writing that, in its good faith judgment, marketing factors require a limitation
of the number of shares to be underwritten, then the Company shall so advise all
participating Holders and the number of shares of Registrable Securities that
may be included in the registration and underwriting shall be allocated among
all Holders thereof in proportion, as nearly as practicable, to the respective
amounts of Registrable Securities held by such Holders at the time of filing the
registration statement. No Registrable Securities excluded from the underwriting
by reason of the underwriter's marketing limitation shall be included in such
registration. If the underwriter has not limited the number of Registrable
Securities to be underwritten, the Company may include securities for its own
account (or for the account of other shareholders) in such registration if the
underwriter so agrees and if the number of Registrable Securities that would
otherwise have been included in such registration and underwriting will not
thereby be limited.

            If the number of Registrable Securities excluded from the
underwriting exceeds fifty percent (50%) of the total Registrable Securities
requested to be included in such underwriting by the Holders, then Holders of a
majority of the Registrable Securities requested to be included

                                       4
<PAGE>

in such underwriting may elect to terminate the registration and underwriting
and such terminated registration shall not count as a registration effected
under this Section 1.3.

            If any Holder of Registrable Securities disapproves of the terms of
the underwriting, such person may elect to withdraw therefrom by written notice
to the Company, the managing underwriter and the Initiating Holders.

               1.4 Expenses of Registration. All Registration Expenses shall be
borne by the Company. All Selling Expenses relating to securities registered on
behalf of the Holders shall be borne by the Holders of such securities pro rata
on the basis of the number of shares so registered.

               1.5 Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant to this Section 1,
the Company will keep each Holder advised in writing as to the initiation of
each registration and such amendment thereof and as to the completion thereof.
At its expense the Company will:

                  (a) Prepare and file with the Commission a registration
statement with respect to such securities and use its best efforts to cause such
registration statement to become and remain effective for at least one hundred
twenty days or until the distribution described in the Registration Statement
has been completed;

                  (b) Furnish to the Holders participating in such registration
and to the underwriters of the securities being registered such reasonable
number of copies of the registration statement, preliminary prospectus, final
prospectus and such other documents as such Holders or underwriters may
reasonably request in order to facilitate the public offering of such
securities.

                  (c) Prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement.

                  (d) Use its best efforts to register and qualify the
securities covered by such registration statement under such other securities or
blue sky laws of such jurisdictions as shall be reasonably requested by the
Holders, provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent
to service of process in any such states or jurisdictions.

                  (e) In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

                  (f) Notify each Holder of Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a

                                       5
<PAGE>

material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the
circumstances then existing.

                  (g) Use its best efforts to furnish, at the request of any
Holder requesting registration of Registrable Securities pursuant to this
Section 1, on the date that such Registrable Securities are delivered to the
underwriters for sale in connection with a registration pursuant to this Section
1, if such securities are being sold through underwriters, or, if such
securities are not being sold through underwriters, on the date that the
registration statement with respect to such securities becomes effective, (i) an
opinion, dated such date, of the counsel representing the Company for the
purposes of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering, addressed to the underwriters,
if any, and to the Holders requesting registration of Registrable Securities and
(ii) a letter dated such date, from the independent certified public accountants
of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities.

               1.6 Indemnification.

                  (a) The Company will indemnify each Holder, each of its
officers and directors and partners, and each person controlling such person
within the meaning of Section 15 of the Securities Act, with respect to which
registration, qualification or compliance has been effected pursuant to this
Section 1, and each underwriter, if any, and each person who controls any
underwriter within the meaning of Section 15 of the Securities Act, against all
expenses, claims, losses, damages or liabilities (or actions in respect
thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus, offering circular or other document, or any
amendment or supplement thereto, incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances in which they were made,
not misleading, or any violation by the Company of the Securities Act or any
Rule or regulation promulgated under the Securities Act applicable to the
Company in connection with any such registration, qualification or compliance,
and the Company will reimburse each such Holder, each of its officers and
directors, and each person controlling such Holder, each such underwriter and
each person who controls any such underwriter, for any legal and any other
expenses reasonably incurred in connection with investigating, preparing or
defending any such claim, loss, damage, liability or action, provided that the
Company will not be liable to any such person in any such case to the extent
that any such claim, loss, damage, liability or expense arises out of or is
based on any untrue statement or omission (or alleged untrue statement or
omission), made in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Holder,
controlling person or underwriter and stated to be specifically for use therein
or the preparation thereby.

                  (b) Each Holder will, if Registrable Securities held by such
Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify the Company, each of
its directors and officers, each underwriter, if any, of

                                       6
<PAGE>

the Company's securities covered by such a registration statement, each person
who controls the Company or such underwriter within the meaning of Section 15 of
the Securities Act, and each other such Holder, each of its officers and
directors and each person controlling such Holder within the meaning of Section
15 of the Securities Act, against all claims, losses, damages and liabilities
(or actions in respect thereof) arising out of any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, persons, underwriters or
control persons for any legal or any other expenses reasonably incurred in
connection with investigating, preparing or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Holder and
stated to be specifically for use therein or the preparation thereby.
Notwithstanding the foregoing, the liability of each Holder under this
subsection (b) shall be limited to an amount equal to the aggregate proceeds
received by such Holder from the sale of Registrable Securities in such
registration.

                  (c) Each party entitled to indemnification under this Section
1.8 (the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such
party's expense, and provided further that the failure of any Indemnified Party
to give notice as provided herein shall not relieve the Indemnifying Party of
its obligations under this Section 1 unless the failure to give such notice is
materially prejudicial to an Indemnifying Party's ability to defend such action
and provided further, that the Indemnifying Party shall not assume the defense
for matters as to which there is a conflict of interest or separate and
different defenses. No Indemnifying Party, in the defense of any such claim or
litigation, shall, except with the consent of each Indemnified Party, consent to
entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation. Notwithstanding the foregoing, if (i) the Company and the
Indemnified Party have mutually agreed in writing to the retention of such
counsel or (ii) the named parties in any such action, suit or proceeding
(including impleaded parties) include the Company and the Indemnified Party, and
representation of the Company and the Indemnified Party by the same counsel
would, in the opinion of counsel to the Indemnified Party, create a conflict;
provided further that, unless otherwise agreed by the Company, if the Company is
obligated to pay the fees and expenses of such counsel, the Company shall be
obligated to pay only the fees and expenses associated with one attorney or law
firm, as applicable, for the Indemnified Party, as well as the fees and expenses
associated with local counsel.

                                       7
<PAGE>

               1.7 Information by Holder. The Holders of securities included in
any registration shall furnish to the Company such information regarding such
Holders, the Registrable Securities held by them and the distribution proposed
by such Holders as the Company may reasonably request in writing and as shall be
required in connection with any registration, qualification or compliance
referred to in this Section 1.

               1.8 Rule 144 Reporting. With a view to making available the
benefits of certain rules and regulations of the Commission which may at any
time permit the sale of the Registrable Securities to the public without
registration, after such time as a public market exists for the Common Stock of
the Company, the Company agrees to use its best efforts to:

                  (a) Make and keep public information available, as those terms
are understood and defined in Rule 144 under the Securities Act, at all times
after the effective date that the Company becomes subject to the reporting
requirements of the Securities Act or the Securities Exchange Act of 1934 (the
"Exchange Act").

                  (b) Use its best efforts to file with the Commission in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act (at any time after it has become subject to
such reporting requirements);

                  (c) So long as a Holder owns any Registrable Securities to
furnish to the Holder forthwith upon request a written statement by the Company
as to its compliance with the reporting requirements of said Rule 144 (at any
time after ninety days after the effective date of the first registration
statement filed by the Company for an offering of its securities to the general
public), and of the Securities Act and the Exchange Act (at any time after it
has become subject to such reporting requirements), a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents
of the Company and other information in the possession of or reasonably
obtainable by the Company as a Holder may reasonably request in availing itself
of any Rule or regulation of the Commission allowing a Holder to sell any such
securities without registration. The Company will take action reasonably
requested by a Holder to facilitate the transfer of Registrable Securities
pursuant to Rule 144 of the Securities Act of 1933.

               1.9 Transfer of Registration Rights. The rights to cause the
Company to register securities granted to the Holders under this Agreement may
be assigned to a transferee or assignee in connection with any transfer or
assignment of Registrable Securities by a Holder provided that: (i) such
assignment or transfer may otherwise be effected in accordance with applicable
securities laws, (ii) such assignee or transferee agrees to be bound by the
terms and conditions of this Agreement, and (iii) either (A) such assignee or
transferee acquires at least 100,000 shares of Registrable Securities
(appropriately adjusted for stock splits, combinations, dividends, distributions
and recapitalizations) not sold to the public, or (B) such assignee or
transferee is a partner or limited partner, shareholder, subsidiary, affiliate,
family member, family trust or the estate of the Holder.

               1.10 Rights Subordinate to the Current Rights Agreement. Pursuant
to Section 1.5 of the Current Rights Agreement, the Company and the undersigned
Holders, agree that all rights and obligations under this Agreement are
subordinate to the rights and obligations as between the Company and the parties
thereto in the Current Rights Agreement.

                                       8
<PAGE>

            2. Affirmative Covenants of the Company and Purchasers.

               2.1 Cooperation of Other Purchasers. Each Purchaser agrees to
cooperate with the Company in all reasonable respects in complying with the
terms and provisions of the letter agreement between the Company and Wasserstein
SBIC Ventures II, L.P. ("WSV"), a copy of which is attached hereto as EXHIBIT C,
regarding small business matters (the "Small Business Sideletter"), including
without limitation, voting to approve amending the Company's Certificate of
Incorporation, the Company's bylaws or this Agreement in a manner reasonably
acceptable to the Purchasers and WSV or any Regulated Holder (as defined in the
Small Business Sideletter) entitled to make such request pursuant to the Small
Business Sideletter in order to remedy a Regulatory Problem (as defined in the
Small Business Sideletter). Anything contained in this Section 2 to the contrary
notwithstanding, no Investor shall be required under this Section 2 to take any
action that would adversely affect in any material respect such Investor's
rights under this Agreement or as an Investor of the Company.

               2.2 Covenant Not to Amend. The Company and each Purchaser agrees
not to vote in favor of or take any action relating to the Series A Preferred
Stock of the Company, or amend or waive the voting or other provisions of the
Company's Certificate of Incorporation, the Company's bylaws, this Agreement or
the other agreements delivered in connection with the issuance and sale of the
Series A Preferred Stock of the Company if such action, amendment or waiver
would cause any Regulated Holder to have a Regulatory Problem (as defined in the
Small Business Sideletter). WSV agrees to notify the Company if it would have a
Regulatory Problem promptly after it has notice of such action, amendment or
waiver.

            3. Miscellaneous.

               3.1 Governing Law. This Agreement shall be governed in all
respects by the laws of the State of California as applied to transactions
taking place between California residents and wholly within the State of
California

               3.2 Survival. The representations, warranties, covenants and
agreements made herein shall survive any investigation made by any Preferred
Holder and the closing of the transactions contemplated hereby.

               3.3 Successors and Assigns. Except as otherwise 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.

               3.4 Entire Agreement; Amendment. This Agreement constitutes the
full and entire understanding and agreement between the parties with regard to
the subjects hereof, and no party shall be liable or bound to any other party in
any manner by any warranties, representations or covenants except as
specifically set forth herein. With the written consent of the Company and
beneficial Holders of at least two-thirds of the then outstanding Registrable
Securities, the obligations of the Company and the rights of the Holders of the
Registrable Securities under this Agreement may be waived (either generally or
in a particular instance, either retroactively or prospectively, and either for
a specified period of time or indefinitely), and with the same consent the
Company, when authorized by resolution of its Board of Directors,

                                       9
<PAGE>

may enter into a supplementary agreement for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement; provided, however, that no such modification, amendment or
waiver shall reduce the aforesaid percentage of Registrable Securities without
the consent of all of the Holders of the Registrable Securities. Upon the
effectuation of each such waiver, consent, agreement of amendment or
modification, the Company shall promptly give written notice thereof to the
record holders of the Registrable Securities who have not previously consented
thereto in writing. This Agreement or any provision hereof may be changed,
waived, discharged of terminated only by a statement in writing signed by the
party against which enforcement of the change, waiver, discharge or termination
is sought, except to the extent provided in this Section 2.4

               3.5 Notices, etc. All notices and other communications required
or permitted hereunder shall be in writing and shall be delivered personally,
mailed by certified or registered mail, postage prepaid, return receipt
requested, or by courier, addressed (a) if to any Preferred Holder or Holder, at
such Holder's address as set forth in the Company's records, or at such other
address as such Holder shall have furnished to the Company in writing, or (b) if
to the Company, at 22nd Fourth Street, 16th Floor, San Francisco, CA 94103, or
at such other address as the Company shall have furnished to such Holders in
writing. Notices that are mailed shall be deemed to have been given five days
after deposit in the United States mail and notices delivered personally or by
courier shall be deemed to have been given upon delivery to recipient's address.

               3.6 Delays or Omissions. Except as expressly provided herein, no
delay or omission to exercise any right, power or remedy accruing to any Holder,
upon any breach or default of the Company under this Agreement, shall impair any
such right, power or remedy of such Holder nor shall it be construed to be a
waiver of any such breach or default, or an acquiescence therein, or of or in
any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any Holder of any breach or default under
this Agreement, or any waiver on the part of any Holder of any provisions or
conditions of this agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any Holder, shall be
cumulative and not alternative.

               3.7 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.

            Severability. If any provision of this Agreement, or the application
thereof, shall for any reason and to any extent be invalid or unenforceable the
remainder of this Agreement and application of such provision to persons or
circumstances shall be interpreted so as best to reasonably effect the intent of
the parties hereto, the parties further agree to replace such void or
unenforceable provision of this Agreement with a valid and enforceable provision
which will achieve to the extent possible, the economic, business and other
purposes of the void or unenforceable provision.

                                       10
<PAGE>

             IN WITNESS WHEREOF, the parties hereto have executed this
Securities Rights Agreement as of the date first written above.

                                          SALON MEDIA GROUP, INC.

                                          By:
                                              ----------------------------------
                                              Michael O'Donnell, President

                                              HOLDER:

                                          By:
                                              ----------------------------------
                                          Name:
                                                --------------------------------
                                          Title:
                                                 -------------------------------

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