AGREEMENT

       

      This
        Agreement (“Agreement”)
        is
        entered into this 31sr day of March, 2005, by and between the parties identified
        on the signature pages hereto (each an “Investor”
        and
        collectively “Investors”)
        and
GOLDSPRING,
        INC.,
        a
        Florida corporation (the “Company”).

       

      R
        E C I T A L S

       

       

      1.  WHEREAS,
        the
        parties hereto are also parties to that certain Subscription Agreement dated
        as
        of November 30, 2004 (the “Subscription
        Agreement”)
        whereby the Company issued and sold to the Investors up to $12.0 million
        of
        principal amount of promissory notes of the Company (“Convertible
        Notes”)
        initially convertible into shares of the Company’s common stock, $0.000666 par
        value per share (the “Common
        Stock”)
        and
        warrants to purchase shares of Common Stock; and

       

      2.  WHEREAS,
        during
        December 2004, certain Investors delivered Notices of Conversion to the Company
        (the “Notices
        of Conversion”)
        electing to convert principal and accrued interest into shares of Common
        Stock
        (the “Conversion
        Shares”)
        pursuant to the terms of the Subscription Agreement; and

       

      3.  WHEREAS,
        the
        Company failed to deliver timely the Conversion Shares to certain Investors,
        and
        as a result of such failure, such Investors are entitled to Liquidated Damages
        pursuant to Section 7.1(c) of the Subscription Agreement (the “Liquidated
        Damages”);
        and

       

      4.  WHEREAS,
        the
        Company is currently unable to pay the Liquidated Damages to Investors in
        cash,
        which as of March 18, 2005, totaled an aggregate of $403,175, calculated
        as set
        forth on Exhibit
        A;
        and

       

      5. WHEREAS,
        to
        provide for certain payment and to avoid the expense, inconvenience, and
        uncertainty of further dispute, the parties hereto desire to resolve the
        claims
        and damages that have accrued pursuant to the Subscription Agreement, without
        any admission of liability to any party hereto, on the terms and conditions
        of
        this Agreement.

      


      AGREEMENT

       

      NOW,
        THEREFORE,
        in
        consideration for the mutual promises, various obligations, rights, and
        covenants contained herein and for other consideration, the receipt and
        sufficiency of which are hereby acknowledged, and intending to be legally
        bound,
        the parties hereto agree as follows:

       

      1.  Incorporation
        of Recitals.
        The
        recitals set forth above are true, accurate, and correct, and are incorporated
        in this Agreement by this reference and made a material part of this
        Agreement.

       

      2.  Payment. As
        of even date herewith (the “Settlement
        Date”),
        in
        consideration for various obligations, rights, and covenants contained herein
        and other consideration, and without any admission of liability by any party
        hereto, the Company shall issue to the Investors up to an aggregate of $403,175
        principal amount of Convertible Notes of the Company in identical form as
        issued
        pursuant to the Subscription Agreement, in accordance with the names and
        amounts
        set forth on Exhibit
        B
        attached
        hereto. For purposes of this Agreement, the Convertible Notes and the shares
        of
        Common Stock underlying such Convertible Notes shall be referred to as the
        “Securities.”

       

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

      

      3.  Acknowledgement
        and Release. In
        consideration of the mutual agreements contained herein, the parties to this
        agreement acknowledge that the Securities are being issued in lieu of liquidated
        damages that accrued pursuant to Section 7.1(c) of the Subscription Agreement
        during the period commencing November 30, 2004 and continuing through and
        including the Settlement Date, and each party fully, finally, and forever
        releases from and discharges one another, and each of its officers, directors,
        stockholders, employees, accountants, and agents, of and from any and all
        claims, demands, obligations, actions, causes of action, damages, costs,
        and
        expenses of any nature whatsoever, which either party may now have in connection
        with liquidated damages that accrued during such period. 

       

      4.  Representations
        and Warranties of Company. 

       

      (a)  Authority. Company
        has the power and authority to enter into this Agreement and to carry out
        the
        transactions contemplated hereby. No other proceedings on the part of Company
        are necessary to authorize the execution and delivery by Company of this
        Agreement or the consummation by Company of the transactions contemplated
        hereby. This Agreement has been duly executed and delivered by, and constitutes
        a legal, valid, and binding agreement of Company, enforceable against it
        in
        accordance with its terms, except that (i) such enforcement may be subject
        to
        bankruptcy, insolvency, reorganization, moratorium, or other similar laws
        now or
        hereafter in effect relating to creditors' rights, and (ii) the remedy of
        specific performance and injunctive and other forms of equitable relief may
        be
        subject to equitable defenses and to the discretion of the court before which
        any proceeding therefore may be brought.

       

      (b)  No
        Violation. The
        execution and delivery of this Agreement and the consummation of the
        transactions contemplated hereby will not violate or result in a breach by
        Company of, or constitute a default under, or conflict with, or cause any
        acceleration of any obligation with respect to, (i) any provision or restriction
        of its articles of incorporation, bylaws, or any loan, indenture, or mortgage
        of
        Company, or (ii) any provision or restriction of any lien, lease agreement,
        contract, instrument, order, judgment, award, decree, ordinance, or regulation
        or any other restriction of any kind or character to which any assets or
        properties of Company is subject or by which Company is bound.

       

      (c)  Accuracy
        of Statements. Neither
        this Agreement nor any statement, exhibit, certificate, or other information
        furnished by Company to Investors in connection with this Agreement or any
        of
        the transactions contemplated hereby contains an untrue statement of a material
        fact or omits to state a material fact necessary to make the statements
        contained herein or therein, in light of circumstances in which they are
        made,
        not misleading.

       

      
        
          
          

        

        
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      5.  Investor’s
        Representations and Warranties. Each
        Investor hereby represents and warrants to and agrees with Company only as
        to
        such Investor that:

       

      (a)  Information
        on Company.
        Investor has been furnished with or has had access via the EDGAR system
        maintained by the Commission to Company's Form 10-KSB for the year ended
        December 31, 2004 as filed with the Commission, together with all subsequently
        filed Forms 10-QSB, 8-K, and filings made with the Commission available via
        the
        EDGAR system (hereinafter referred to collectively as the “Reports”).
        In
        addition, the Investor has received in writing from Company such other
        information concerning its operations, financial condition, and other matters
        as
        Investor has requested in writing (such other information is collectively,
        the
“Other
        Written Information”),
        and
        considered all factors Investor deems material in deciding on the advisability
        of investing in the Securities. 

       

      (b)  Information
        on Investor. Investor
        is an “accredited investor”, as such term is defined in Regulation D promulgated
        by the Commission under the 1933 Act, is experienced in investments and business
        matters, has made investments of a speculative nature and has purchased
        securities of U.S. publicly owned companies in private placements in the
        past
        and, with its representatives, has such knowledge and experience in financial,
        tax, and other business matters as to enable Investor to utilize the information
        made available by Company to evaluate the merits and risks of and to make
        an
        informed investment decision with respect to the proposed purchase, which
        represents a speculative investment. Investor has the authority and is duly
        and
        legally qualified to receive and own the Securities. Investor is able to
        bear
        the risk of such investment for an indefinite period and to afford a complete
        loss thereof. The information set forth on the signature page hereto regarding
        Investor is accurate.

       

      (c)  Intent. As
        of the Settlement Date, Investor shall accept the Securities for its own
        account
        for investment only and not with a view toward, or for resale in connection
        with, the public sale or any distribution thereof.

       

      (d)  Compliance
        with Securities Act. Investor
        understands and agrees that the Securities have not been registered under
        the
        Securities Act of 1933, as amended (the “1933
        Act”)
        Act or
        any applicable state securities laws, by reason of their issuance in a
        transaction that does not require registration under the 1933 Act (based
        in part
        on the accuracy of the representations and warranties of Investor contained
        herein), and that the Securities must be held indefinitely unless a subsequent
        disposition is registered under the 1933 Act or any applicable state securities
        laws or is exempt from such registration. 

       

      (e)  Securities
        Legend. The
        Securities shall bear the following or similar legend:

       

      
        
          
          

        

        
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      “THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES MAY NOT BE SOLD, OFFERED
        FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
        STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW
        OR AN
        OPINION OF COUNSEL REASONABLY SATISFACTORY TO GOLDSPRING, INC. THAT SUCH
        REGISTRATION IS NOT REQUIRED.”

       

      (f)  Authority;
        Enforceability. This
        Agreement and other agreements delivered together with this Agreement or
        in
        connection herewith have been duly authorized, executed, and delivered by
        Investor and are valid and binding agreements enforceable against Investor
        in
        accordance with their terms, subject to bankruptcy, insolvency, fraudulent
        transfer, reorganization, moratorium and similar laws of general applicability
        relating to or affecting creditors’ rights generally and to general principles
        of equity; and Investor has full corporate power and authority necessary
        to
        enter into this Agreement and such other agreements and to perform its
        obligations hereunder and under all other agreements entered into by Investor
        relating hereto.

       

      (g)  Restricted
        Securities. Investor
        understands that the Securities have not been registered under the 1933 Act
        and
        such Investor will not sell, offer to sell, assign, pledge, hypothecate,
        or
        otherwise transfer any of such securities unless pursuant to an effective
        registration statement under the 1933 Act. Notwithstanding anything to the
        contrary contained in this Agreement, such Investor may transfer (without
        restriction and without the need for an opinion of counsel) the Securities
        to
        its Affiliates (as defined below) provided that each such Affiliate is an
        “accredited investor” under Regulation D and such Affiliate agrees to be bound
        by the terms and conditions of this Agreement. For the purposes of this
        Agreement, an “Affiliate” of any person or entity means any other person or
        entity directly or indirectly controlling, controlled by or under direct
        or
        indirect common control with such person or entity. For purposes of this
        definition, “control” means the power to direct the management and policies of
        such person or firm, directly or indirectly, whether through the ownership
        of
        voting securities, by contract or otherwise.

       

      (h)  No
        Governmental Review. Each
        Investor understands that no U.S. federal or state agency or any other
        governmental or state agency has passed on or made recommendations or
        endorsement of the Securities or the suitability of the investment in the
        Securities nor have such authorities passed upon or endorsed the merits of
        the
        offering of the Securities.

       

      (i)  Correctness
        of Representations. Each
        Investor represents as to such Investor that the foregoing representations
        and
        warranties are true and correct as of the date hereof and, unless an Investor
        otherwise notifies the Company prior to the Settlement Date shall be true
        and
        correct as of the Settlement Date.

       

      6.  Review
        by Counsel.
        By
        executing this Agreement, the parties acknowledge that this Agreement has
        been
        freely and extensively negotiated and they have fully availed themselves
        of the
        opportunity to consult with counsel of their choice about the consequences
        of
        its terms and provisions. The parties acknowledge that they have read this
        Agreement, that they fully understand it, that they agree to be bound by
        its
        terms and conditions. The parties further acknowledge that such parties are
        not
        relying on any representations or warranties of any of the other parties
        or
        their counsel in entering into this Agreement, except such representations
        or
        warranties as may be expressly set forth in this Agreement.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      7.  Binding
        Effect. This
        Agreement, and every part hereof, shall be effective only upon the Settlement
        Date, and shall be binding upon and shall inure to the benefit of the parties
        hereto, as well as to their respective successors-in-interest, heirs, executors,
        administrators, and assigns.

       

      8.  Further
        Assurances.
        Each
        party hereto agrees to take all actions and cooperate as necessary to and
        further agrees to execute any documents that might be necessary to effect
        the
        transactions contemplated by this Agreement.

       

      9.  Entire
        Agreement. This
        writing (including the Recitals) and the exhibits represent the entire agreement
        and understanding of the parties with respect to the subject matter hereof
        and
        supersedes all prior agreements and understandings of the parties respecting
        the
        same.

       

      10.  Attorneys’
        Fees. In
        the event of a violation of this Agreement or any portion thereof, the
        prevailing party in any litigation arising therefrom shall be entitled to
        recover all reasonable attorneys’ fees and costs.

       

      11.  Amendment;
        Waiver. Neither
        this Agreement nor any term hereof may be amended, waived, discharged, or
        terminated, except by a written instrument signed by Company and holders
        of not
        less than 80% of the outstanding principal amount of Securities, and any
        such
        amendment, waiver, discharge, or termination shall be binding on all the
        Holders.

       

      12.  Governing
        Law. This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        state of New York without regard to principles of conflicts of laws. Any
        action
        brought by either party against the other concerning the transactions
        contemplated by this Agreement shall be brought only in the state courts
        of New
        York or in the federal courts located in the state of New York. The parties
        and
        the individuals executing this Agreement and other agreements referred to
        herein
        or delivered in connection herewith on behalf of the Company agree to submit
        to
        the jurisdiction of such courts and waive trial by jury. In the event that
        any
        provision of this Agreement or any other agreement delivered in connection
        herewith is invalid or unenforceable under any applicable statute or rule
        of
        law, then such provision shall be deemed inoperative to the extent that it
        may
        conflict therewith and shall be deemed modified to conform with such statute
        or
        rule of law. Any such provision which may prove invalid or unenforceable
        under
        any law shall not affect the validity or enforceability of any other provision
        of any agreement.

       

      13.  Delays
        or Omissions.
        No
        delay
        or omission to exercise any right, power, or remedy accruing to any Investor,
        upon any breach or default of Company under this Agreement, shall impair
        any
        such right, power, or remedy, nor shall it be construed to be a waiver of
        any
        such breach or default, or any 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.

       

      
        
          
          

        

        
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      16. Counterparts.
        This
        Agreement may be executed in counterparts, each of which shall be an original,
        but all of which taken together shall constitute one Agreement..

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
        first above written.

       

      COMPANY:

       

      GOLDSPRING,
        INC., a Florida corporation

       

      By:
        _____________________________________     

      Robert
        T.
        Faber, President

      


      INVESTORS:

      


      MERRIMAN
        CURHAN FORD CORPORATION

       

      By:
        _____________________________________

      Name:
        ___________________________________

      Title:
        ____________________________________


      


      A.
        Tod
        Hindin

      


      KENNETH
        R. WERNER REV TST

      DTD
        7/20/96

       

      By:
        _____________________________________

      Name:
        ___________________________________

      Title:
        ____________________________________


      


      ___________________________________
D.
        Jonathan
        Merriman

      


      


      ___________________________________
Brock
        Ganeles

      


      


      ___________________________________
Elise
        Stern

      


      


      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      


      ___________________________________
Carl
        Frankson

      


      


      ___________________________________
Pete
        Marcil

      


      


      ___________________________________
David
        Bain

      


      


      ___________________________________
Gregory
        S.
        Curhan

      


      


      ___________________________________
John
        Hiestand

      


      


      ___________________________________
Robert
        E. Ford

      


      


      ___________________________________
Eric
        Wold

      


      


      ___________________________________
Christopher
        Aguilar

      


      


      ___________________________________
Peter
        A.
        Blackwood

      


      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      EXHIBIT
        A

       

      CALCULATION
        OF LIQUIDATED DAMAGES

       

      


       

      


       

      
        
           

        

        
           

          
            

          

        

        
           

        

      


      EXHIBIT
        B

       

      CONVERTIBLE
        NOTES TO BE ISSUED IN SETTLEMENT