Statement of Purpose for Extension of Credit between Deutsche Bank Securities, Inc. and Salon Media Group, Inc.

Summary

Deutsche Bank Securities, Inc. is extending a $1,000,000 loan, plus interest, to Salon Media Group, Inc. The borrower certifies that the funds will be used solely for working capital and not for purchasing, carrying, or trading in securities. The agreement is formalized through a Federal Reserve Form T-4, and the borrower affirms the accuracy of the stated purpose. No securities are involved in the transaction, and the borrower acknowledges legal obligations under Federal Reserve regulations.

EX-10.32 2 salon_8k-ex1032.txt STATEMENT OF PURPOSE FOR AN EXTENSION OF CREDIT EXHIBIT 10.32 FR T-4 OMB No. 7100-0019 Approval expires March 31, 2008 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Statement of Purpose for an Extension of Credit by a Creditor (Federal Reserve Form T-4) Deutsche Bank Securities, Inc. - -------------------------------------------------------------------------------- Name of Creditor This report is required by law (15 Public reporting burden for this U.S.C. 78g and 78w; 12 CFR 220). collection of information is estimated to average 10 minutes per The Federal Reserve may not conduct response, including the time to or sponsor, and an organization (or a gather and maintain data in the person) is not required to respond required form and to review to, a collection of information instructions and complete the unless it displays a currently valid information collection. Send comments OMB control number. regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N.W., Washington, DC 20551; and to the Office of Management and Budget, Paperwork Reduction Project (7100-0019), Washington, DC 20503. Instructions 1. This form must be completed only if the purpose of the credit being extended is not to purchase, carry, or trade in securities and the credit is in excess of that otherwise permitted under Regulation T. (See ss. 220.6(e)(2)). 2. Please print or type (if space is inadequate, attach separate sheet). Part I To be completed by customer(s) 1. What is the amount of the credit being extended? $1,000,000 plus interest ---------------------------- 2. The borrower acknowledges that no part of this credit will be used to purchase, carry, or trade in securities. The purpose of the credit is described in detail as follows: Working Capital - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. Are any of the securities listed in Part II to be delivered, or have any such securities been delivered from a bank, broker, dealer, or other person on a "delivery against payment" basis? |_| Yes |X| No I (We) have read this form and certify that to the best of my (our) knowledge and belief the information given is true, accurate, and complete. Signed: Signed: /s/ Conrad Lowry 5/24/07 - --------------------------------------- --------------------------------------- Borrower's signature Date Borrower's signature Date Salon Media Group, Inc. - --------------------------------------- --------------------------------------- Print or type name Print or type name This form should not be signed if blank. A borrower who falsely certifies the purpose of a credit on this form or otherwise willfully or intentionally evades the provisions of Regulation T will also violate Federal Reserve Regulation X, "Borrowers of Securities Credit."