Document:

EXHIBIT 4.2.26
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                       NOTE AND WARRANT PURCHASE AGREEMENT
                       -----------------------------------

     This Note and Warrant Purchase Agreement, dated as of April 10, 2003 (the
"Agreement"), is entered into by and among Salon Media Group, Inc., a Delaware
corporation (the "Company"), and each of the undersigned purchasers
(collectively the "Purchasers" and individually a "Purchaser") listed on the
Schedule of Purchasers attached hereto as Exhibit A.

                                     RECITAL

     On the terms and subject to the conditions set forth herein, the Purchasers
are willing to purchase from the Company and the Company is willing to sell to
the Purchasers, Convertible Promissory Notes (individually a "Note", and
collectively, the "Notes") and warrants to purchase common stock (individually,
a "Warrant", and collectively, the "Warrants") to be issued by the Company in
the principal amounts and for the number of shares, respectively, set forth
opposite each Purchaser's name on the Schedule of Purchasers.

                                    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. NOTES AND WARRANTS.

     (a) ISSUANCE OF NOTES AND WARRANTS. In reliance upon the representations,
warranties and covenants of the parties set forth herein, the Company agrees to
issue, sell and deliver to the Purchasers, and the Purchasers agree to purchase
from the Company, the Notes and Warrants. The purchase price for the Notes and
Warrants shall be payable in immediately available funds.

     (b) TERMS OF THE NOTES AND WARRANTS. The terms and conditions of the Notes
and Warrants are set forth in the forms of Note and Warrant attached hereto as
Exhibit C and Exhibit D, respectively. Capitalized terms not otherwise defined
herein shall have the meaning set forth in Exhibit C or Exhibit D.

     (c) DELIVERY. The Company will deliver to each Purchaser a Note and Warrant
to be purchased by such Purchaser against receipt by the Company of the purchase
price for such Note.

     2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to the Purchaser that:

     (a) 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.

<PAGE>

     (b) CORPORATE POWER. The Company has all requisite corporate power
necessary for the authorization, execution and delivery of this Agreement, and
the Warrants, to sell and issue the Notes hereunder, to carry out and perform
all of its obligations under the terms of this Agreement, 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 Notes 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.

     (c) CAPITALIZATION. As of March 31, 2003, 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) 819 shares of Series
A Preferred Stock, (iii) 125 shares of Series B Preferred Stock (iv) warrants to
purchase an aggregate of 10,793,053 shares of Common Stock, (v) options to
purchase an aggregate of 6,142,766 shares of Common Stock granted to employees
pursuant to the Company's 1995 Stock Option Plan, and (vi) an aggregate of
16,125,960 shares of Common Stock reserved for issuance upon conversion of the
Series A Preferred Stock and Series B Preferred Stock. The 16,125,960 shares of
Common Stock reserved for issuance upon conversion of the Series A Preferred
Stock and Series B Preferred Stock may increase according to anti-dilution
provisions to approximately 35,000,000 common shares on an "as converted" basis
should a Series C and D Preferred Round of approximately $4 million close with a
conversion ratio equaling $0.05 per common share. Bridge financing in the gross
amount of $1,214,039 and $500,000 has been received designated for conversion to
Series C Preferred Stock and Series D Preferred Stock, respectively, and may
represent approximately 34 million shares of common stock, on an "as converted"
basis. 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. From the period between March 31, 2003 and the date hereof, the
Company has not issued any shares of capital stock, nor granted any warrants or
options to purchase shares of Common Stock.

     (d) AUTHORIZATION.

          (i) CORPORATE ACTION. All corporate action on the part of the Company,
its officers, directors and stockholders necessary for the sale and issuance of
the Notes and the authorization, execution and performance of the Company's
obligations hereunder and under the Warrants has been taken.

          (ii) VALID ISSUANCE. The Notes, the Warrants, and any shares of common
or preferred stock issued upon conversion or exercise of the Notes or Warrants
(the "Conversion Securities"), when issued in compliance with the provisions of
this Agreement will be validly issued, fully paid and nonassessable and will be
free of restrictions on transfer other than restrictions under the Warrants and
under applicable federal and state securities laws.

     (e) NO PREEMPTIVE RIGHTS. No person has any right of first refusal or any
preemptive rights in connection with the issuance of the Notes, the Warrants or
Conversion Securities or any future issuances of securities by the Company.

<PAGE>

     (f) COMPLIANCE WITH OTHER INSTRUMENTS. The execution, delivery and
performance of and compliance with this Agreement, the Notes or the Warrants by
the Company, and the issuance and sale of the Conversion Securities, 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.

     (g) OFFERING. In reliance on the representations and warranties of the
Purchaser in Section 3 hereof, the offer, sale and issuance of the Notes and the
Warrants in conformity with the terms of this Agreement, the Notes 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.

     (h) COMPANY REPORTS; DISCLOSURE.

          (i) 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 February 14,
2003 (the date of filing of the Company's Form 10-Q reporting the period ending
December 31, 2002) 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.

          (ii) 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 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 Note.

     3. REPRESENTATIONS AND WARRANTIES BY THE PURCHASER. The Purchaser
represents and warrants to the Company as of the time of issuance of the Notes
and Warrants as follows:

     (a) INVESTMENT INTENT: AUTHORITY. This Agreement is made with the Purchaser
in reliance upon such Purchaser's representation to the Company, evidenced by
Purchaser's execution of this Agreement, that Purchaser is acquiring the Note
and Warrant, including the

<PAGE>

Conversion Securities, for investment for such Purchaser's own account, not as
nominee or agent, for investment 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. Purchaser has the full right, power, authority and
capacity to enter into and perform this Agreement and this Agreement will
constitute a valid and binding obligation upon Purchaser, except as the same may
be limited by bankruptcy, insolvency, moratorium, and other laws of general
application affecting the enforcement of creditors' rights.

     (b) SECURITIES NOT REGISTERED. The Purchaser understands and acknowledges
that the offering of the Notes, the Warrants and the Conversion Securities
pursuant to this Agreement will not be registered under the Securities 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 the Note, the Warrant and the
Conversion Securities must be held for at least 12 months after Closing and
thereafter indefinitely unless they are registered under the Securities Act and
qualified under applicable blue sky laws or an exemption from such registration
and such qualification is available.

     (c) NO TRANSFER. Purchaser covenants that in no event will it transfer the
Note, the Warrant or the Conversion Securities other than (i) in conjunction
with an effective registration statement for the Securities under the Securities
Act or pursuant to an exemption therefrom, or in compliance with Rule 144
promulgated under the Securities Act, or (ii) to a partner, former partner,
limited partner, member, former member, stockholder or other entity affiliated
with Purchaser or, in the case of a Purchaser who is an individual, to a spouse,
lineal descendant or ancestor, or any trust for any of the foregoing, by
transfer by gift, will or intestate succession; provided that in each of the
foregoing cases the transferee agrees in writing to be subject to the terms of
this Agreement to the same extent as if the transferee were the original
Purchaser hereunder.

     (d) KNOWLEDGE AND EXPERIENCE. Purchaser (i) has such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of Purchaser's prospective investment in the Note, the Warrant
and the Conversion Securities; (ii) has the ability to bear the economic risks
of Purchaser's prospective investment; (iii) has had access to such information
as Purchaser has considered necessary to make a determination to purchase the
Note, the Warrant and the Conversion Securities together with such additional
information as is necessary to verify the accuracy of the information supplied;
and (iv) has not been offered the Note, the Warrant or the Conversion Securities
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.

     (e) ACCREDITED INVESTOR. Purchaser is an "accredited investor" as that term
is defined in Rule 501(a) under the Securities Act.

<PAGE>

     (f) LEGENDS. Each certificate representing the Notes, the Warrants and the
Conversion Securities may be endorsed with the following legends:

          (i) 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.

          (ii) Other Legends. Any other legends required by applicable state
blue sky laws. The Company need not register a transfer of any legended Note,
Warrant or Conversion Securities, and may also instruct its transfer agent not
to register the transfer of the Notes, Warrants or Conversion Securities, unless
the conditions specified in each of the foregoing legends are satisfied.

     (g) REMOVAL OF LEGEND AND TRANSFER RESTRICTIONS. Any legend endorsed on a
certificate pursuant to subsection 3(f) and the stop transfer instructions with
respect to such legend shall be removed, and the Company shall issue a
certificate without such legend to the holder of such Note, Warrant or
Conversion Securities if such Note, Warrant or Conversion Securities 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).

     4. SECURITY INTEREST. The Company hereby grants to the Purchasers a
security interest in all of the Company's right, title and interest in presently
existing and hereafter acquired assets (the "Collateral"), as more fully
described in Exhibit B attached hereto, of the Company to secure the payment of
indebtedness under the Note. The Company agrees to prepare and file any UCC
financing statements and other documentation as may be necessary, and to take
such reasonable actions as may be requested by Purchasers, to perfect
Purchasers' security interest. Pre-existing apparently perfected security
interests, as further described in Exhibit E attached hereto, may be in
existence and may be senior in interest to the security interest granted to
Purchasers hereby. The security interest evidenced by the Note is junior certain
liens arising under or related to the Note and Warrant Purchase Agreement, dated
as of various dates among Salon Media Group, Inc. and the Purchasers identified
therein.

     5. SUBORDINATION. The indebtedness evidenced by the Notes ("Subordinated
Indebtedness") is hereby expressly subordinated, to the extent and in the manner
hereinafter set forth, in right of payment to the prior payment in full of all
of the Company's Senior Indebtedness (as defined below).

     (a) DEFINITION OF SENIOR INDEBTEDNESS. "SENIOR INDEBTEDNESS" shall mean the
principal of (and premium, if any), unpaid interest on and amounts reimbursed,
fees, expenses, costs of enforcement and other amounts due in connection with
any indebtedness of the

<PAGE>

Company to a commercial bank lender Silicon Valley Bank ("Bank"), which may be
incurred from time to time pursuant to an agreement between the Company and
Bank, which credit facility shall not exceed $1,000,000 ("Senior Indebtedness").

     (b) PAYMENT AND REMEDIES BLOCKAGE. Other than payouts made by the Company
so as to avoid issuing fractional shares upon conversion of the Notes, Purchaser
will not demand or receive from Company (and Company will not pay to Purchaser)
all or any part of the Subordinated Indebtedness by way of payment, prepayment,
setoff, lawsuit or otherwise, nor will Purchaser exercise any remedy with
respect to the Collateral, nor will Purchaser commence, or cause to commence,
prosecute or participate in any administrative, legal or equitable action
against the Company for so long as any portion of the Senior Indebtedness
remains outstanding. Notwithstanding the foregoing, (i) Purchaser may accept,
and the Company may pay, regularly scheduled interest payments in accordance
with the terms of the Notes provided an Event of Default does not exist under
any document executed in connection with the Senior Indebtedness or would exist
after giving effect to such payment, (ii) in the event that the stockholders of
the Company have not approved the Notes and Warrants, the Company shall repay
any and all Senior Indebtedness then outstanding so as to allow the Company to
pay the Purchasers any and all amounts of principal and accrued interest owing
under the Notes, and (iii) nothing in this Section 5 shall prevent or otherwise
restrict Purchaser from converting the Note into equity securities in accordance
with its terms.

     (c) LIEN SUBORDINATION. The security interest granted in this Agreement is
subordinate to the security interest that Bank or its successor or assignee may
hold from time to time in the Collateral. Notwithstanding the respective dates
of attachment or perfection of the security interest of Purchaser and the
security interest of Bank, the security interest of Bank shall at all time be
prior to the security interest of Purchaser.

     (d) BANKRUPTCY, INSOLVENCY. If there shall occur any receivership,
insolvency, assignment for the benefit of creditors, bankruptcy, reorganization,
or arrangements with creditors (whether or not pursuant to bankruptcy or other
insolvency laws), sale of all or substantially all of the assets, dissolution,
liquidation, or any other marshaling of the assets and liabilities of the
Company, no amount shall be paid by the Company in respect of the principal of,
interest on or other amounts due with respect to this Note at the time
outstanding, unless and until the principal of and interest on the Senior
Indebtedness then outstanding shall be paid in full.

     (e) SUBROGATION. Subject to the payment in full of all Senior Indebtedness,
the holder of the Notes shall be subrogated to the rights of the holder(s) of
such Senior Indebtedness (to the extent of the payments or distributions made to
the holder(s) of such Senior Indebtedness pursuant to the provisions of this
Section 5) to receive payments and distributions of assets of the Company
applicable to the Senior Indebtedness. No such payments or distributions
applicable to the Senior Indebtedness shall, as between the Company and its
creditors, other than the holders of Senior Indebtedness and the Purchaser, be
deemed to be a payment by the Company to or on account of the Notes; and for
purposes of such subrogation, no payments or distributions to the holders of
Senior Indebtedness to which the Purchaser would be entitled except for the
provisions of this Section 5 shall, as between the Company and its creditors,
other

<PAGE>

than the holders of Senior Indebtedness and the Purchasers, be deemed to be a
payment by the Company to or on account of the Senior Indebtedness.

     (f) NO IMPAIRMENT. Nothing contained in this Section 5 shall impair, as
between the Company and Purchasers, the obligation of Company, subject to the
terms and conditions hereof, to pay to the Purchaser the principal hereof and
interest hereon as and when the same become due and payable, or shall prevent
the Purchasers of the Notes, upon default hereunder, from exercising all rights,
powers and remedies otherwise provided herein or by applicable law.

     (g) RELIANCE OF PURCHASERS OF SENIOR INDEBTEDNESS. Purchaser, by its
acceptance hereof, shall be deemed to acknowledge and agree that the foregoing
subordination provisions are, and are intended to be, an inducement to and a
consideration of each holder of Senior Indebtedness, whether such Senior
Indebtedness was created or acquired before or after the creation of the
indebtedness evidenced by this Note, and each such holder of Senior Indebtedness
shall be deemed conclusively to have relied on such subordination provisions in
acquiring and holding, or in continuing to hold, such Senior Indebtedness. No
amendment of this Agreement, the Notes or any other agreements relating to the
Subordinated Indebtedness shall modify the provision of this Section 5 in a way
that could reasonably be expected to impair the subordination of the security
interest or lien that Purchaser may have in the Collateral or the subordination
of any payment rights under the Subordinated Indebtedness. At any time and from
time to time, without notice to Purchaser, Bank may take such actions with
respect to the Senior Indebtedness as Bank, in its sole discretion, may deem
appropriate, including without limitation terminating advances to the Company,
increasing the principal amount up to $1,000,000, extending the time of payment,
increasing applicable interest rates, compromising or otherwise amending the
terms of any documents affecting the Senior Indebtedness, and enforcing or
failing to enforce any rights against the Company or any other person.

     6. MISCELLANEOUS.

     (a) WAIVERS AND AMENDMENTS. Any provision of this Agreement other than the
principal amount of the Notes and the number of shares subject to the Warrants
may be amended, waived or modified upon the written consent of the Company and
the Purchasers providing a majority of the aggregate principal amounts provided
pursuant to this Agreement.

     (b) GOVERNING LAW. This Agreement shall be governed in all respects by the
laws of the State of Delaware.

     (c) ENTIRE AGREEMENT. This Agreement together with the Notes and Warrants
constitutes the full and entire understanding and agreement between the parties
with regard to the subjects hereof and thereof.

     (d) NOTICES. Any notice, request or other communication required or
permitted hereunder shall be in writing and shall be duly given upon receipt if
personally delivered or mailed by registered or certified mail, postage prepaid,
or by recognized overnight courier or personal delivery, addressed (i) if to a
Purchaser, at the address or facsimile number of such Purchaser set forth below
such party's name on Exhibit A, or at such other address or

<PAGE>

number as such Purchaser shall have furnished to the Company in writing, or (ii)
if to Company, at 22 Fourth Street, 16th Floor, San Francisco, CA 94103,
Attention: Chief Financial Officer or at such other address as Company shall
furnish to the Purchaser in writing.

     (e) VALIDITY. If any provision of this Agreement, the Notes or the Warrants
shall be judicially determined to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     (f) COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall be deemed to constitute one instrument.

<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered by their proper and duly authorized officers as of the
date and year first written above.

                                                      COMPANY:

                                                      SALON MEDIA GROUP, INC.
                                                      a Delaware corporation

                                                      By:

                                                      Name: Michael O'Donnell

                                                      Title: President / CEO

PURCHASER:

[  ]

By:
   --------------------------------

                                    EXHIBIT A

                             SCHEDULE OF PURCHASERS

------------------------------------------------ ------------------------------
Ironstone Group, Inc., a Delaware corporation               $100,000
------------------------------------------------ ------------------------------
John Warnock                                                $100,000
------------------------------------------------ ------------------------------EXHIBIT 4.2.27
                                                                  --------------

THIS NOTE AND ANY SHARES ACQUIRED UPON CONVERSION OF THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT COVERING THIS NOTE, THE SALE IS MADE IN
ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF
COUNSEL FOR THE HOLDER OF THIS NOTE REASONABLY SATISFACTORY TO THE COMPANY,
STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

                             SALON MEDIA GROUP, INC.

                           CONVERTIBLE PROMISSORY NOTE
                           ---------------------------

$100,000                                                          April 10, 2003

     Salon Media Group, Inc., a Delaware corporation (the "Company"), for value
received, hereby promises to pay to [ ], ("Holder"), the principal sum of One
Hundred Thousand Dollars ($100,000) with interest as provided below.

     1. PAYMENT.

     (a) PAYMENT. Subject to the provisions of Section 3 hereof relating to the
conversion of this Note, principal and accrued interest hereof shall be payable
on the earlier of (i) the date of the next meeting of the Company's stockholders
at which a proposal seeking the approval of the sale of the Bridge Notes (as
defined below) is voted upon and is not approved by the Company's stockholders,
or (ii) September 30, 2003 (the "Maturity Date"). Payments hereunder shall be
made by the Company to the Holder, at the address as provided to the Company by
the Holder in writing, in lawful money of the United States of America. Interest
shall accrue with respect to the unpaid principal amount of the loan from the
date of this Note until such principal is paid or converted as provided in
Section 3 hereof at a rate of six percent (6%) per annum (computed on the basis
of a 365-day year).

     (b) PREPAYMENT. The Company shall have the right at any time and without
penalty to prepay, in whole or in part, the principal outstanding and/or the
interest accrued hereunder.

     2. CERTAIN DEFINITIONS.

     (a) "BRIDGE NOTES" shall mean the series of notes, of which this Note is a
part, dated on or about the date hereof, each of which are identical, other than
the date of the Note, identity of the Holder and principal amount of this Note.

<PAGE>

     (b) "FINANCING" shall mean the first closing of the proposed Series D
Preferred Stock.

     (c) "FINANCING SECURITIES" shall mean the shares of equity securities of
the Company sold in the Financing.

     (d) "OBLIGATIONS" shall mean all outstanding principal and accrued interest
due hereunder.

     3. CONVERSION.

     (a) AUTOMATIC CONVERSION UPON FINANCING. This Note shall automatically
convert into the Financing Securities upon the closing of the Financing.

     (b) AUTOMATIC CONVERSION ABSENT FINANCING BY SEPTEMBER 30, 2003. If no
Financing shall have occurred by the close of business on September 30, 2003,
then this Note shall automatically convert into shares of Common Stock.

     (c) CONVERSION PRICE UPON FINANCING. In the event of an automatic
conversion pursuant to subsection 3(a) hereof, the number of shares of the
Financing Securities to be issued upon conversion of the Obligations shall equal
the aggregate amount of the Obligations divided by the price per share of the
Financing Securities issued and sold in the Financing.

     (d) CONVERSION PRICE ABSENT FINANCING BY SEPTEMBER 30, 2003. In the event
of an automatic conversion pursuant to subsection 3(b) hereof, the number of
shares of the Common Stock to be issued upon conversion of this Note shall equal
the aggregate amount of the Obligations divided by the average closing price of
the Common Stock over the sixty (60) trading days ending on September 30, 2003,
as reported on such market(s) and/or exchange(s) where the Common Stock has
traded during such sixty trading days.

     (e) NOTICE REGARDING FINANCING. Written notice shall be delivered to the
Holder of this Note pursuant to Section 7 below notifying the Holder of the
terms and conditions of the Financing, the applicable conversion price, the date
on which any automatic conversion occurred and calling upon such Holder to
surrender the Note to the Company for cancellation and conversion in the manner
and at the place designated.

     (f) MECHANICS AND EFFECT OF CONVERSION. No fractional shares of Financing
Securities or Common Stock shall be issued upon conversion of this Note.
Notwithstanding any other provision of this Note or the Note and Warrant
Purchase Agreement, upon the conversion of the Obligations under this Note, in
lieu of the Company issuing any fractional shares to the Holder, the Company
shall pay to the Holder in cash the amount of the Obligations that is not so
converted. Upon conversion of this Note pursuant hereto, the Holder shall
surrender this Note, duly endorsed, at the principal office of the Company and
shall execute such documents as are reasonably required to be executed by all
purchasers of the Financing Securities. The Company shall, as soon as
practicable thereafter, issue and deliver to such Holder at such principal
office a certificate or certificates for the number of shares of the Financing
Securities or Common Stock to which the Holder shall be entitled upon such
conversion (bearing such legends as are required

<PAGE>

by applicable state and federal securities laws in the opinion of counsel to the
Company), together with any other securities and property to which the Holder is
entitled upon such conversion under the terms of this Note. Upon full conversion
of this Note pursuant to the terms hereof, the Company shall be forever released
from all its obligations and liabilities under this Note. Upon conversion of
this Note into Financing Securities or Common Stock, the Holder shall be
entitled to all rights and privileges afforded by the Company to other holders
of such Financing Securities or Common Stock.

     4. EVENTS OF DEFAULT. The occurrence of any of the following shall
constitute an "Event of Default" under this Note and the Note and Warrant
Purchase Agreement of even date herewith (the "Purchase Agreement"):

     (a) FAILURE TO PAY. The Company shall fail to pay (i) when due any
principal payment on the due date hereunder or (ii) any interest or other
payment required under the terms of this Note on the date due and such payment
shall not have been made within fifteen (15) days of Company's receipt of
Holder's written notice to the Company of such failure to pay; or

     (b) VOLUNTARY BANKRUPTCY OR INSOLVENCY PROCEEDINGS. The Company shall (i)
apply for or consent to the appointment of a receiver, trustee, liquidate or
custodian of itself or of all or a substantial part of its property, (ii) make a
general assignment for the benefit of its or any of its creditors, (iii) be
dissolved or liquidated in full or in part, (iv) commence a voluntary case or
other proceeding seeking liquidation, reorganization or other relief with
respect to itself or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect or consent to any such relief or to the
appointment of or taking possession of its property by any official in an
involuntary case or other proceeding commenced against it, or (v) take any
action for the purpose of effecting any of the foregoing; or

     (c) INVOLUNTARY BANKRUPTCY OR INSOLVENCY PROCEEDINGS. Proceedings for the
appointment of a receiver, trustee, liquidator or custodian of the Company or of
all or a substantial part of the property thereof, or an involuntary case or
other proceedings seeking liquidation, reorganization or other relief with
respect to the Company or the debts thereof under any bankruptcy, insolvency or
other similar law or hereafter in effect shall be commenced and an order for
relief entered or such proceeding shall not be dismissed or discharged within
thirty (30) days of commencement.

     5. RIGHTS OF HOLDER UPON DEFAULT. Subject to the provisions set forth in
Sections 5 and 6 of the Purchase Agreement, upon the occurrence or existence of
any Event of Default (other than an Event of Default referred to in Paragraphs
4(c) and 4(d)) and at any time thereafter during the continuance of such Event
of Default, Holder may declare all outstanding Obligations payable by Company
hereunder to be immediately due and payable without presentment, demand, protest
or any other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in the Purchase Agreement to the contrary
notwithstanding. Upon the occurrence or existence of any Event of Default
described in Paragraphs 4(c) and 4(d), immediately and without notice, all
outstanding Obligations payable by Company hereunder shall automatically become
immediately due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived, anything contained
herein or in the Purchase Agreement to the contrary notwithstanding. In addition
to the

<PAGE>

foregoing remedies, upon the occurrence or existence of any Event of Default and
subject to the provisions of Sections 5 and 6 of the Purchase Agreement, Holder
may exercise any other right, power or remedy granted to it by the Purchase
Agreement or otherwise permitted to it by law, either by suit in equity or by
action at law, or both.

     6. SECURITY INTEREST. The satisfaction of the Obligations hereunder are
secured by a security interest in favor of the Purchasers in all of the
Company's right, title and interest in presently existing and hereafter acquired
assets as provided for in Section 4 of the Purchase Agreement.

     7. MISCELLANEOUS.

     (a) AMENDMENT PROVISIONS. Any provision of this Note other than the
principal amount and identity of the Holder may be amended, waived or modified
upon the written consent of the Company and the parties providing at least a
majority of the aggregate principal amounts provided pursuant to the Bridge
Notes.

     (b) SEVERABILITY. If any provision of this Note is determined to be
invalid, illegal or unenforceable, in whole or in part, the validity, legality
and enforceability of any of the remaining provisions or portions of this Note
shall not in any way be affected or impaired thereby and this Note shall
nevertheless be binding between the Company and the Holder.

     (c) GOVERNING LAW. This Note shall be governed by and construed in
accordance with the laws of the State of Delaware.

     (d) BINDING EFFECT. This Note shall be binding upon, and shall inure to the
benefit of, the Company and the Holder and their respective successors and
assigns; provided, however, that the Company may not assign its obligations
hereunder without the Holder's prior written consent.

     (e) ENFORCEMENT COSTS. The Company agrees to pay all costs and expenses,
including, without limitation, reasonable attorneys' fees and expenses, the
Holder expends or incurs in connection with the enforcement of this Note, the
collection of any sums due hereunder, any actions for declaratory relief in any
way related to this Note, or the protection or preservation of any rights of the
Holder hereunder.

     (f) NOTICES. Any notice, request or other communication required or
permitted hereunder shall be in writing and shall be duly given upon receipt if
personally delivered or mailed by registered or certified mail, postage prepaid,
or by recognized overnight courier or personal delivery, addressed (i) if to
Holder, at the address or facsimile number of such Holder as set forth below
such party's name on Exhibit A to the Purchase Agreement, or at such other
address or number as such Holder shall have furnished to the Company in writing,
or (ii) if to Company, at 22 Fourth Street, 16th Floor, San Francisco, CA 94103,
Attention: Chief Financial Officer or at such other address as Company shall
furnish to the Purchaser in writing.

     (g) PAYMENT. Payment shall be made in lawful tender of the United States.

<PAGE>

     (h) TRANSFER OF NOTE OR SECURITIES ISSUABLE ON CONVERSION HEREOF. This Note
or the securities issuable on conversion hereof may not be transferred in
violation of any restrictive legend set forth hereon or thereon. Each new Note
issued upon transfer of this Note, and each security issuable on conversion
hereof, shall bear the restrictive legend set forth below, unless in the opinion
of counsel for Company such legend is not required in order to ensure compliance
with the Act:

         "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR
         OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
         STATEMENT FILED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM
         REGISTRATION UNDER SUCH ACT."

The Company may issue stop transfer instructions to its transfer agent in
connection with such restrictions. Subject to the foregoing, transfers of this
Note shall be registered upon registration books maintained for such purpose by
or on behalf of the Company as provided in the Purchase Agreement. Prior to
presentation of this Note for registration of transfer, the Company shall treat
the registered holder hereof as the owner and holder of this Note for the
purpose of receiving all payments of principal and interest hereon and for all
other purposes whatsoever, whether or not this Note shall be overdue and Company
shall not be affected by notice to the contrary.

     (i) HEADINGS. Section headings used in this Note have been set forth herein
for convenience of reference only. Unless the contrary is compelled by the
context, everything contained in each section hereof applies equally to this
entire Note.

     IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the
date first written above.

                                                    Salon Media Group, Inc.

                                                    By:

                                                    Name: Michael O'Donnell

                                                    Title: President / CEO

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