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                                                                   EXHIBIT 10.16

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT ("Agreement") is effective as of November 1,
2003 (the "Effective Date") between International Steel Group Inc., a Delaware
corporation (the "Company"), and Mitchell A. Hecht ("Executive").

         WHEREAS, prior to the Effective Date, Executive was the Vice President
- External Affairs & Public Policy of the Company, and as of the Effective Date,
executive desires to resign his position as Vice President - External Affairs &
Public Policy and continue to be an employee of the Company and represent the
Company in government affairs out of Washington, D.C.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         1.       Certain Definitions. Certain words or phrases used herein with
initial capital letters shall have the meanings set forth in paragraph 8 hereof.

         2.       Employment. The Company shall employ Executive, and Executive
accepts employment with the Company as of the Effective Date, upon the terms and
conditions set forth in this Agreement for the period beginning on the Effective
Date and ending as provided in paragraph 5 hereof (the "Employment Period").

         3.       Position and Duties.

                  (a)      Executive hereby resigns his title of Vice President
         - External Affairs & Public Policy as of the Effective Date. Executive
         further resigns from any other directorship, office, or position of the
         Company or any entity that is a subsidiary of, or is otherwise related
         to or affiliated with, the Company to which he has been elected by the
         Board of Directors of the Company (the "Board") (or to which he has
         otherwise been appointed). During the Employment Period, Executive
         shall continue to be an employee of the Company and shall represent the
         Company in government affairs in Washington D.C.

                  (b)      Executive shall report to the Chief Executive Officer
         of the Company or such other officer of the Company as is designated by
         the Chief Executive Officer.

                  (c)      During the Employment Period, Executive shall devote
         Executive's best efforts and Executive's full business time and
         attention (except for permitted vacation periods and reasonable periods
         of illness or other incapacity) to the business and affairs of the
         Company, its subsidiaries and affiliates. Executive shall perform
         Executive's duties and responsibilities to the best of Executive's
         abilities in a diligent, trustworthy, businesslike and efficient
         manner.

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         4.       Compensation and Benefits.

                  (a)      Salary. The Company agrees to pay Executive a salary
         during the Employment Period in installments based on the Company's
         practices as may be in effect from time to time. Executive's salary
         shall be at the rate of $150,000 per year (the "Base Salary").

                  (b)      Stock Options. (i) Executive was granted 154 stock
         options pursuant to the Company's 2002 Stock Option Plan and the
         agreement entered into between the Company and Executive with respect
         to such stock options effective as of June 28, 2002 (collectively the
         "Stock Option Plan"). With respect to Executive's stock options, (A)
         38.5 of Executive's stock options vested on April 12, 2003, (B) 23.5 of
         Executive's stock options shall vest on the date following the
         expiration of the revocation period set forth in subparagraph
         9(b)(iii)(D) hereof if Executive has not exercised his right of
         revocation pursuant to such paragraph prior to such date and (C) 10 of
         Executive's stock options shall vest on January 1, 2004 if Executive
         remains an employee of the Company until such date (collectively, the
         "Vested Options"). The Vested Options shall remain outstanding until
         the termination of such options in accordance with the terms of the
         Stock Option Plan. Executive's remaining 82 stock options that were
         granted under the Stock Option Plan (the "Forfeited Options") shall
         immediately terminate as of the Effective Date and shall not be
         exercisable as of the Effective Date.

                           (ii)     In consideration of the cancellation of the
                  Forfeited Options, the Company shall pay Executive a cash
                  payment of $412,500. Such amount will be payable to Executive
                  as follows: (A) $200,000 shall be payable to Executive as a
                  lump sum as soon as practicable following Executive's
                  execution of this Agreement and the expiration of the
                  revocation period set forth in subparagraph 9(b)(iii)(D)
                  hereof without Executive having exercised his right of
                  revocation and (B) $212,500 shall be payable to Executive as a
                  lump sum on January 1, 2004.

                  (c)      Additional Payment. The Company shall pay Executive a
         cash payment equal to $58,543 (the "Additional Payment") in a lump sum
         as soon as practicable following Executive's execution of this
         Agreement and the expiration of the revocation period set forth in
         subparagraph 9(b)(iii)(D) hereof without Executive having exercised his
         right of revocation. Executive acknowledges that his Base Salary to be
         received during the Employment Period (or in accordance with paragraph
         6(b) hereof) and the Additional Payment will satisfy the Company's
         obligation to pay any guaranteed payment under any contract or
         agreement, whether written or oral, between the Company and Executive.

                  (d)      Benefits. Executive shall be eligible during the
         Employment Period to participate, on the same basis as other similarly
         situated employees of the Company, in those benefit plans and programs
         (including insurance, vacation and other benefits, but excluding, the
         Company's Executive Severance Pay Plan and any other severance pay
         program or policy of the Company) for which other similarly situated
         employees of the Company are from time to time generally eligible, as
         determined from time to time by the Board.

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         5.       Employment Period.

                  (a)      Except as hereinafter provided, the Employment Period
         and Executive's employment with the Company shall continue until, and
         shall end upon, the second anniversary of the Effective Date.

                  (b)      Notwithstanding (a) above, the Employment Period
         shall end early upon the first to occur of any of the following events:

                           (i)      Executive's death;

                           (ii)     a Termination For Cause;

                           (iii)    a Termination Without Cause; or

                           (iv)     a Voluntary Termination.

         6.       Post-Employment Period Payments.

                  (a)      At the end of the Employment Period for any reason,
         Executive shall cease to have any rights to salary, equity awards or
         other benefits and Executive shall be entitled to (i) any Base Salary
         which has accrued but is unpaid and any unexpired vacation days which
         have accrued under the Company's vacation policy but are unused, as of
         the end of the Employment Period, (ii) any option rights or plan
         benefits which by their terms extend beyond termination of Executive's
         employment (but only to the extent provided in any option theretofore
         granted to Executive or any other benefit plan in which Executive has
         participated as an employee of the Company and excluding, except as
         hereinafter provided in subparagraph 6(b), any severance pay program or
         policy of the Company) and (iii) any benefits to which Executive is
         entitled under Part 6 of Subtitle B of Title I of the Employee
         Retirement Income Security Act of 1974, as amended ("COBRA"). In
         addition, Executive shall be entitled to the additional benefits and
         amounts described in subparagraph 6(b), in the circumstances described
         in such subparagraph.

                  (b)      If the Employment Period ends early pursuant to
         paragraph 5 on account of a Termination Without Cause, the Company
         shall pay Executive the unpaid Base Salary to which he would have been
         entitled if the Employment Period had continued until the second
         anniversary of the Effective Date. Such payment shall be made in a lump
         sum as soon as practicable following the Termination Without Cause. In
         addition, if the Employment Period ends early pursuant to paragraph 5
         on account of a Termination Without Cause prior to January 1, 2004, the
         10 stock options described in paragraph 4(b)(i)(C) above shall vest on
         the date of such Termination Without Cause and such stock options shall
         remain outstanding until the termination of such options in accordance
         with the terms of the Stock Option Plan.

         7.       Restrictive Covenant. Executive will be bound by the following
restrictive covenant. If Executive fails to abide by the following covenant, the
Company may cease any remaining payments or benefits payable to Executive
hereunder. Except as otherwise required

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by law or an order or decree issued by a court of competent jurisdiction,
Executive will keep in strict confidence, and will not, directly or indirectly,
at any time during or after Executive's employment with the Company or any
Controlled Group member, disclose, furnish, disseminate, make available or,
except in the course of performing Executive's duties of employment hereunder,
use any trade secrets or confidential business and technical information of the
Company or any Controlled Group member or their customers or vendors, including
without limitation as to when or how Executive may have acquired such
information. Such confidential information shall include, without limitation,
the Company's and any Controlled Group member's unique selling, manufacturing
and servicing methods and business techniques, training, service and business
manuals, promotional materials, training courses and other training and
instructional materials, vendor and product information, customer and
prospective customer lists, other customer and prospective customer information
and other business information. Executive specifically acknowledges that all
such confidential information, whether reduced to writing, maintained on any
form of electronic media, or maintained in Executive's mind or memory and
whether compiled by the Company, any Controlled Group member and/or Executive,
derives independent economic value from not being readily known to or
ascertainable by proper means by others who can obtain economic value from its
disclosure or use, that reasonable efforts have been made by the Company and the
Controlled Group members to maintain the secrecy of such information, that such
information is the sole property of the Company or the Controlled Group members
and that any retention and use of such information by Executive during
Executive's employment with the Company or any Controlled Group member (except
in the course of performing Executive's duties of employment hereunder) or after
the termination of Executive's employment shall constitute a misappropriation of
the Company's or any Controlled Group member's trade secrets.

         8.       Definitions.

                  (a)      "Controlled Group" means the Company and any other
         entity which is a member of the Company's controlled group (as such
         term is defined in Sections 414(b) or 414(c) of the Internal Revenue
         Code).

                  (b)      "Termination For Cause" means the termination by the
         Company or any subsidiary of Executive's employment with the Company or
         any subsidiary as a result of (i) the commission by Executive of a
         felony or a fraud, (ii) conduct by Executive that brings the Company or
         any subsidiary or affiliate of the Company into substantial public
         disgrace or disrepute, (iii) gross negligence or gross misconduct by
         Executive with respect to the Company or any subsidiary or affiliate of
         the Company or (iv) Executive's violation of paragraph 7 of this
         Agreement.

                  (c)      "Termination Without Cause" means the termination by
         the Company or any subsidiary of Executive's employment with the
         Company or any subsidiary for any reason other than a Termination for
         Cause.

                  (d)      "Voluntary Termination" means Executive's termination
         of Executive's employment with the Company or any subsidiary for any
         reason.

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         9.       Release by Executive. In exchange for the Company's payment to
Executive for Executive's Forfeited Options and the continuation of Executive's
employment during the Employment Period:

                  (a)      Upon his termination of employment at the end of the
         Employment Period, Executive agrees that he will execute a release of
         all current or future claims, known or unknown, arising during the
         Employment Period against the Company, its subsidiaries and its
         officers, in a form approved by the Company; and

                  (b)      (i)      Executive for himself and his dependents,
         successors, assigns, heirs, executors and administrators (and his and
         their legal representatives of every kind), hereby releases, dismisses,
         remisses and forever discharges the Company from any and all
         arbitrations, claims (including claims for attorney's fees), demands,
         damages, suits, proceedings, actions and/or causes of action of any
         kind and every description, whether known or unknown, which Executive
         now has as of the Effective Date or may have had prior to the Effective
         Date for, upon, or by reason of any cause whatsoever, against the
         Company ("claims"), including but not limited to:

                           (A)      any and all claims, directly or indirectly,
                                    arising out of or relating to: (i)
                                    Executive's employment or service with the
                                    Company prior to the Effective Date; (ii)
                                    Executive's resignation as Vice President -
                                    External Affairs & Public Policy of the
                                    Company and any other position described in
                                    paragraph 3 of this Agreement and (iii) the
                                    termination of Executive's employment on the
                                    second anniversary of the Effective Date.

                           (B)      any and all claims of discrimination,
                                    including but not limited to claims of
                                    discrimination on the basis of sex, race,
                                    age, national origin, marital status,
                                    religion or disability, including,
                                    specifically, but without limiting the
                                    generality of the foregoing, any claims
                                    under the Age Discrimination in Employment
                                    Act, as amended (the "ADEA"), Title VII of
                                    the Civil Rights Act of 1964, as amended,
                                    the Americans with Disabilities Act of 1990,
                                    the Family and Medical Leave Act of 1993 and
                                    Ohio Revised Code Chapter 4112;

                           (C)      any and all claims of wrongful or unjust
                                    discharge or breach of any contract or
                                    promise, express or implied; and

                           (D)      any and all claims under or relating to any
                                    and all employee compensation, employee
                                    benefit, employee severance or employee
                                    incentive bonus plans and arrangements, all
                                    of which Executive agrees are forfeited upon
                                    his resignation; provided that he shall
                                    remain entitled to the amounts and benefits
                                    described in paragraph 4 or 6 above.
                                    Executive agrees that he intends to release
                                    any and all workers compensation claims he
                                    may have against the Company by this
                                    Agreement, and further agrees to execute any

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                                    documentation as may be reasonably required
                                    to perfect such release when presented to
                                    him by the Company.

                           (ii)     Executive understands and acknowledges that
                  the Company does not admit any violation of law, liability or
                  invasion of any of his rights and that any such violation,
                  liability or invasion is expressly denied. The consideration
                  provided under this Agreement is made for the purpose of
                  settling and extinguishing all claims and rights (and every
                  other similar or dissimilar matter) that Executive ever had or
                  now may have against the Company to the extent provided in
                  this paragraph 9(b). Executive further agrees and acknowledges
                  that no representations, promises or inducements have been
                  made by the Company other than as appear in this Agreement.

                           (iii)    Executive further understands and
                  acknowledges that:

                           (A)      The release provided for in this paragraph
                                    9(b), including claims under the ADEA to and
                                    including the Effective Date, is in exchange
                                    for the additional consideration provided
                                    for in this Agreement, to which
                                    consideration he was not heretofore
                                    entitled;

                           (B)      He has been advised by the Company to
                                    consult with legal counsel prior to
                                    executing this Agreement and the release
                                    provided for in this paragraph 9(b), has had
                                    an opportunity to consult with and to be
                                    advised by legal counsel of his choice,
                                    fully understands the terms of this
                                    Agreement, and enters into this Agreement
                                    freely, voluntarily and intending to be
                                    bound;

                           (C)      He has been given a period of twenty-one
                                    days to review and consider the terms of
                                    this Agreement, and the release contained
                                    herein, prior to its execution and that he
                                    may use as much of the twenty-one day period
                                    as he desires; and

                           (D)      He may, within seven days after execution,
                                    revoke the release set forth in this
                                    paragraph 9(b). Revocation shall be made by
                                    delivering a written notice of revocation to
                                    the Corporate Manager of Human Resources at
                                    the Company. For such revocation to be
                                    effective, written notice must be actually
                                    received by the Corporate Manager of Human
                                    Resources at the Company no later than the
                                    close of business on the seventh day after
                                    Executive executes this Agreement. If
                                    Executive does exercise his right to revoke
                                    this release, all of the terms and
                                    conditions of the Agreement shall be of no
                                    force and effect and the Company shall have
                                    no obligation to satisfy the terms or make
                                    any payment to Executive as set forth in
                                    paragraph 4 or 6 of this Agreement.

                           (iv)     Executive will never file a lawsuit or other
                  complaint asserting any claim that is released in this
                  paragraph 9(b).

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                           (v)      Executive and the Company acknowledge that
                  his resignation is by mutual agreement between the Company and
                  Executive, and that Executive waives and releases any claim
                  that he has or may have to reemployment other than as
                  described in this Agreement.

                           (vi)     For purposes of the above provisions of this
                  paragraph 9(b), the "Company" shall include its present and
                  former predecessors, subsidiaries, divisions, related or
                  affiliated companies, officers, directors, stockholders,
                  members, employees, heirs, successors, assigns,
                  representatives, agents, accountants and counsel.

         10.      Lockup Agreement. Notwithstanding any other provision of this
Agreement to the contrary, the Company shall not be required to take any action
or make any payment under this Agreement if such action or payment would result
in a violation of the terms of that certain lockup agreement, by and among
Goldman, Sachs & Co., UBS Securities LLC and Executive, dated as of September
30, 2003.

         11.      Withholding of Taxes. The Company may withhold from any
amounts payable under this Agreement all federal, state, city or other taxes as
the Company is required to withhold pursuant to any applicable law, regulation
or ruling.

         12.      Notices. Any notice provided for in this Agreement shall be in
writing and shall be either personally delivered, sent by reputable overnight
carrier or mailed by first class mail, return receipt requested, to the
recipient at the address below indicated:

                  Notices to Executive:

                           Mitchell A. Hecht
                           152 Eckford Street
                           Brooklyn, NY  11222

                  Notices to the Company:

                           International Steel Group Inc.
                           Attn: Karen A. Smith, Corporate Manager of Human
                           Resources
                           3250 Interstate Drive
                           Richfield, Ohio 44286

or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement will be deemed to have been given when so delivered,
sent or mailed.

         13.      Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be
reformed,

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construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.

         14.      Prevailing Party's Litigation Expenses. In the event of
litigation between the Company and Executive related to this Agreement, the
non-prevailing party shall reimburse the prevailing party for any costs and
expenses (including, without limitation, attorneys' fees) reasonably incurred by
the prevailing party in connection therewith.

         15.      Complete Agreement. This Agreement embodies the complete
agreement and understanding between the parties with respect to the subject
matter hereof and effective as of its date supersedes and preempts any prior
understandings, agreements or representations by or between the parties, written
or oral (including, without limitation, the Executive Severance Pay Plan, any
employment agreement between Executive and the Company, whether written or oral,
and the Officer Cash and Stock Bonus Plan), which may have related to the
subject matter hereof in any way.

         16.      Counterparts. This Agreement may be executed in separate
counterparts, each of which shall be deemed to be an original and both of which
taken together shall constitute one and the same agreement.

         17.      Successors and Assigns. This Agreement shall bind and inure to
the benefit of and be enforceable by Executive, the Company and their respective
heirs, executors, personal representatives, successors and assigns, except that
neither party may assign any rights or delegate any obligations hereunder
without the prior written consent of the other party. Executive hereby consents
to the assignment by the Company of all of its rights and obligations hereunder
to any successor to the Company by merger or consolidation or purchase of all or
substantially all of the Company's assets, provided such transferee or successor
assumes the liabilities of the Company hereunder.

         18.      Choice of Law. This Agreement shall be governed by the
internal law, and not the laws of conflicts, of the State of Ohio.

         19.      Amendment and Waiver. The provisions of this Agreement may be
amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                         [SIGNATURES ON FOLLOWING PAGE]

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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth below.

                                                  INTERNATIONAL STEEL GROUP INC.

                                                  By:/s/ Rodney B. Mott
                                                     ---------------------------
                                                  Name:  Rodney B. Mott
                                                  Title: President and CEO

                                                  Date:  November 12, 2003

                                                  /s/ Mitchell A. Hecht
                                                  ------------------------------
                                                  MITCHELL A. HECHT

                                                  Date: November 14, 2003

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