Employment Agreement - Salon.com and Bob O'Callahan

June 26, 2000

Bob O'Callahan

Dear Bob,

I am pleased to offer you a position with Salon as Senior Vice President & Chief
Financial Officer reporting to Michael O'Donnell CEO & President in our San
Francisco office. Your start date will be effective July 17, 2000. Here's a
summary of the compensation package:

     .    You will receive a monthly salary of $14,583.33 (equivalent to
          $175,000 on an annualized basis) which will be paid semi-monthly in
          accordance with Salon's normal payroll procedures.

     .    Bonus:  $25,000 (based on MBO's determined during first 30 days)

     .    You will be granted 100,000 employee incentive options (4 year
          vesting) in accordance with the company's stock option plan, subject
          to approval by the company's Board of Directors.

In case of a Salon.com merger, sale or reorganization, and your position is
eliminated, relocated or reduced you would receive one year's worth of
compensation and 1 year's accelerated vesting (in addition to the current year).
 
As a Salon employee you will also be eligible to receive certain employee
benefits including:

     .    An Insurance program consisting of medical, dental, vision, short term
          and long term disability and life insurance
     .    12 days paid vacation and the standard 12 Salon paid holidays
     .    401K Savings Plan
     .    Salon Employee Stock Purchase Plan
 
Please contact Michele Alcantara, our Employment Manager, if you have any
additional questions. She can be reached at (415) 645-9267 or at
malcantara@salon.com. The second page of this letter contains important
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information about the terms of your employment at Salon. Please read it
carefully, sign the bottom and return it to Michele. We're excited to have you
join us and we look forward to a mutually successful relationship.


Michael O'Donnell
Chief Executive Officer
Salon.com

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Terms of Employment

This offer is contingent on Salon receiving satisfactory responses from your
references. If you choose to accept this offer, your employment with Salon will
be voluntarily entered into and will be for no specified period. As a result,
you will be free to resign at any time, for any reason or for no reason, as you
deem appropriate. Salon will have a similar right and may conclude its
employment relationship with you at any time, with or without cause.

For purposes of federal immigration law, you will be required to provide Salon
with documentary evidence of your identity and eligibility for employment in the
United States. Such documentation must be provided to us within three (3)
business days of your date of hire, or our employment relationship with you may
be terminated.

Salon reserves the right to change or alter as it sees fit and at its sole
discretion the terms of your employment including but not limited to employee
benefits, your job title, rate of pay and job classification.

     In the event of any dispute or claim relating to or arising out of our
employment relationship, this agreement, or the termination of our employment
relationship (including, but not limited to, any claims of wrongful termination
or age, sex, disability, race or other discrimination), you and Salon agree that
all such disputes shall be fully, finally and exclusively resolved by binding
arbitration conducted by the American Arbitration Association in San Jose,
California. However, we agree that this arbitration provision shall not apply to
any disputes or claims relating to or arising out of the misuse or
misappropriation of Salon's trade secrets or proprietary information.

To indicate your acceptance of Salon's offer, please sign and date this letter
in the space provided below and return it to me. You will also be required to
sign an Employee Inventions and Proprietary Rights Assignment Agreement as a
condition of your employment. This offer letter and the Terms of Employment,
along with any agreements relating to proprietary rights between you and Salon,
set forth the terms of your employment with Salon and supersede any prior
representations or agreements, whether written or oral. This letter may not be
modified or amended except by a written agreement, signed by Salon and by you.

Salon.com                           Agreed to and Accepted



_______________________   ______    ______________________        _______
Michael O'Donnell         date      Bob O'Callahan                date
Chief Executive Officer

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