Exhibit 10.1 JAG MEDIA HOLDINGS, INC. 6865 S.W. 18TH STREET, SUITE B13 BOCA RATON, FL. 33433 TEL: 866.300.7410 O FAX: 866.292.4051 August 5, 2005 Cornell Capital Partners 101 Exchange Place Jersey City, NJ 07302 Attention: Mark Angelo Re: $2 Million Promissory Note between Cornell Capital Partners, LP ("Cornell") and JAG Media Holdings, Inc. (the "Company") dated January 25, 2005 ("Promissory Note") Dear Mark: This letter will confirm our mutual understanding that, as permitted under Section 1 of the Promissory Note, the date by which the Company shall pay all amounts due under the Promissory Note is extended for three (3) months. Accordingly, the schedule for puts under the Equity Line Purchase Agreement in connection with the Promissory Note is extended for three (3) months such that the Put Date for the first Put Notice (Put Notice No. LN-01) will now be November 4, 2005, instead of August 5, 2005, and all bi-weekly Put Notices thereafter (Put Notices Nos. LN-02 through LN-36) shall be adjusted accordingly. In connection with these revised Put Notices, the Company will deliver to Cornell revised versions of Put Notices LN-01 through LN-36 reflecting the above referenced extension, along with appropriate revised Joint Disbursement Instructions related to such Put Notices. This letter will also confirm that, as permitted under Section 1 of the Promissory Note, the Company has opted to make three interest payments to Cornell, each in the amount of $20,000.00, which payments shall be made in a single lump sum of $60,000.00 upon execution of this letter. Defined terms used in this letter, which are not otherwise defined herein, shall have the meaning ascribed to them in the Promissory Note. Except for the above-referenced revision of the put schedule and final due date, the Promissory Note shall remain unchanged and in full force and effect. Cornell Capital Partners, LP August 5, 2005 Page -2- - -------------------------------------------------------------------------------- If the foregoing accurately reflects our understanding, please acknowledge your agreement and acceptance by signing this letter where indicated and returning a fully executed copy to my attention. Very truly yours, JAG MEDIA HOLDINGS, INC. By: /s/ Thomas J. Mazzarisi --------------------------------------- Thomas J. Mazzarisi Chairman & Chief Executive Officer AGREED AND ACCEPTED: CORNELL CAPITAL PARTNERS, LP By: Yorkville Advisors, LLC Its: General Partner /s/ Mark A. Angelo - ------------------------------------------- By: Mark A. Angelo Its: Portfolio Manager