EXHIBIT 4.7

                                                                  EXECUTION COPY

                    INTELLECTUAL PROPERTY SECURITY AGREEMENT

                  This  INTELLECTUAL  PROPERTY  SECURITY  AGREEMENT (as amended,
amended and restated,  supplemented or otherwise modified from time to time, the
"IP SECURITY  AGREEMENT") dated December 29, 2005, is made by the Persons listed
on the signature pages hereof  (collectively,  the "GRANTORS") in favor of Wells
Fargo Bank, N.A. ("WELLS FARGO") as Collateral  Agent (the  "COLLATERAL  AGENT")
for and  representative  of (in such capacity,  together with its successors and
assigns,  the  "SECURED  PARTY") the Holders  (as defined in the  Indenture  (as
defined below)).

                  WHEREAS,  National Coal Corp., a Florida corporation,  and the
Grantors  have  entered  into an  Indenture  dated as of  December  29, 2005 (as
amended,  amended and restated,  supplemented or otherwise modified from time to
time the "INDENTURE"),  with Wells Fargo, as Collateral Agent.  Terms defined in
the Indenture and not otherwise defined herein are used herein as defined in the
Indenture.

                  WHEREAS, as a condition precedent to the purchase of the Notes
by the Holders,  each Grantor has executed and delivered  that certain  Security
Agreement  dated December 29, 2005 made by the Grantors to the Secured Party (as
amended,  amended and restated,  supplemented or otherwise modified from time to
time, the "SECURITY AGREEMENT").

                  WHEREAS,  under  the  terms  of the  Security  Agreement,  the
Grantors have granted to the Secured  Party a security  interest in, among other
property,  certain intellectual  property of the Grantors,  and have agreed as a
condition  thereof to execute this IP Security  Agreement for recording with the
U.S. Patent and Trademark  Office,  the United States Copyright Office and other
governmental authorities.

                  NOW,  THEREFORE,  for good  and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged, each Grantor agrees as
follows:

1.       GRANT OF SECURITY.  Each Grantor  hereby  grants to the Secured Party a
         security interest in all of such Grantor's right, title and interest in
         and to the following (the "COLLATERAL"):

         (a)      the trademark and service mark  registrations and applications
                  set forth on  SCHEDULE  A hereto  (provided  that no  security
                  interest  shall be  granted  in  United  States  intent-to-use
                  trademark  applications  to the extent that, and solely during
                  the period in which, the grant of a security  interest therein
                  would   impair  the   validity  or   enforceability   of  such
                  intent-to-use  trademark applications under applicable federal
                  law),  together  with the  goodwill  symbolized  thereby  (the
                  "TRADEMARKS");

         (b)      all copyrights,  whether registered or unregistered, now owned
                  or hereafter acquired by such Grantor (the "COPYRIGHTS");

         (c)      all reissues, divisions, continuations, continuations-in-part,
                  extensions,   renewals  and   reexaminations  of  any  of  the
                  foregoing, all rights in the foregoing


<PAGE>


                  provided by international treaties or conventions,  all rights
                  corresponding  thereto  throughout  the  world  and all  other
                  rights  of  any  kind  whatsoever  of  such  Grantor  accruing
                  thereunder or pertaining thereto;

         (d)      any and all claims for damages and injunctive relief for past,
                  present and future infringement,  dilution,  misappropriation,
                  violation,  misuse  or  breach  with  respect  to  any  of the
                  foregoing,  with the right, but not the obligation, to sue for
                  and collect, or otherwise recover, such damages; and

         (e)      any and all proceeds of, collateral for, income, royalties and
                  other  payments now or hereafter  due and payable with respect
                  to, and supporting obligations relating to, any and all of the
                  Collateral of or arising from any of the foregoing.

2.       SECURITY  FOR  OBLIGATIONS.  The grant of a security  interest  in, the
         Collateral by each Grantor under this IP Security Agreement secures the
         payment of all  Obligations  of such Grantor now or hereafter  existing
         under or in  respect  of the  Notes,  the  Indenture,  or the  Security
         Documents,  whether  direct or indirect,  absolute or  contingent,  and
         whether for principal,  reimbursement obligations,  interest, premiums,
         penalties,  fees,  indemnifications,  contract causes of action, costs,
         expenses or otherwise.

3.       RECORDATION.  Each Grantor authorizes and requests that the Register of
         Copyrights and the Commissioner for Trademarks and any other applicable
         U.S. government officer record this IP Security Agreement.

4.       EXECUTION IN COUNTERPARTS.  This IP Security  Agreement may be executed
         in any number of counterparts,  each of which when so executed shall be
         deemed  to be an  original  and  all  of  which  taken  together  shall
         constitute one and the same agreement.

5.       GRANTS,  RIGHTS  AND  REMEDIES.  This IP  Security  Agreement  has been
         entered  into  in  conjunction  with  the  provisions  of the  Security
         Agreement.  Each Grantor does hereby  acknowledge  and confirm that the
         grant  of the  security  interest  hereunder  to,  and the  rights  and
         remedies of, the Secured Party with respect to the  Collateral are more
         fully set forth in the Security Agreement,  the terms and provisions of
         which  are  incorporated  herein  by  reference  as if fully  set forth
         herein.

6.       GOVERNING  LAW.  This IP Security  Agreement  shall be governed by, and
         construed in accordance with, the laws of the State of New York.


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<PAGE>



                  IN WITNESS  WHEREOF,  each Grantor has caused this IP Security
Agreement  to be duly  executed  and  delivered  by its officer  thereunto  duly
authorized as of the date first above written.

                                        NATIONAL COAL CORP.



                                        By: /s/ Jon E. Nix
                                            ------------------------------------
                                        Name:  Jon E. Nix
                                        Title: CEO

                                        Address for Notices:





                                        NATIONAL COAL CORPORATION



                                        By: /s/ Jon E. Nix
                                            ------------------------------------
                                        Name:  Jon E. Nix
                                        Title: CEO

                                        Address for Notices:




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<PAGE>


                                        NC TRANSPORTATION, INC.



                                        By: /s/ Jon E. Nix
                                            ------------------------------------
                                        Name:  Jon E. Nix
                                        Title: CEO

                                        Address for Notices:





                                        NC RAILROAD, INC.



                                        By: /s/ Robert Pardue
                                            ------------------------------------
                                        Name:  Robert Pardue
                                        Title: President

                                        Address for Notices:




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<PAGE>


                                   SCHEDULE A

<TABLE>
<CAPTION>
--------------------------- -------------- ------------ ------------ -------------- ------------ ---------------

          TRADEMARK          FILING DATE     APPL. NO.   ISSUE DATE    REG. NO.       STATUS          OWNER
--------------------------- -------------- ------------ ------------ -------------- ------------ ---------------
<S>                          <C>             <C>         <C>         <C>             <C>          <C>
NCC                            8/4/03                      5/20/04     2,835,601     Effective    National Coal
                                                                                                   Corporation
--------------------------- -------------- ------------ ------------ -------------- ------------ ---------------
NCC                                                      07/07/2003                  Effective    National Coal
(Tennessee Registration)                                                                           Corporation
--------------------------- -------------- ------------ ------------ -------------- ------------ ---------------
N                             1/18/2005      78549105                Not Available    Pending     National Coal
                                                                                                   Corporation
                             (Serial No.)
--------------------------- -------------- ------------ ------------ -------------- ------------ ---------------
</TABLE>


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<PAGE>


           FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT

                  This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this
"IP SECURITY  AGREEMENT  Supplement")  dated  December 29, 2005,  is made by the
Person  listed on the  signature  page hereof (the  "GRANTOR") in favor of Wells
Fargo Bank, N.A. ("WELLS FARGO"),  as Collateral Agent (the "COLLATERAL  AGENT")
for and  representative  of (in such capacity,  together with its successors and
assigns,  the  "SECURED  PARTY") the Holders  (as defined in the  Indenture  (as
defined below)).

                  WHEREAS,  National Coal Corp., a Florida corporation,  and the
Grantors  have  entered  into an  Indenture  dated as of  December  29, 2005 (as
amended,  amended and restated,  supplemented or otherwise modified from time to
time the "INDENTURE"),  with Wells Fargo, as Collateral Agent.  Terms defined in
the Indenture and not otherwise defined herein are used herein as defined in the
Indenture.

                  WHEREAS,  pursuant to the  Indenture,  the Grantor and certain
other Persons have executed and delivered that certain Security  Agreement dated
December 29, 2005 made by the Borrower,  the  Guarantors  and any other Grantors
from time to time party thereto  (collectively,  the "GRANTORS") in favor of the
Secured  Party (as  amended,  amended and  restated,  supplemented  or otherwise
modified  from  time  to  time,  the  "SECURITY  AGREEMENT")  and  that  certain
Intellectual  Property  Security  Agreement  dated December 29, 2005 made by the
Grantors  in favor of the  Secured  Party (as  amended,  amended  and  restated,
supplemented  or  otherwise  modified  from  time  to  time,  the  "IP  SECURITY
AGREEMENT").

                  WHEREAS,  under  the  terms  of the  Security  Agreement,  the
Grantor  has granted to the  Collateral  Agent,  for the ratable  benefit of the
Secured Parties, a security interest in the Additional Collateral (as defined in
SECTION 1 below) of the Grantor and has agreed as a condition thereof to execute
this IP Security  Agreement  Supplement for recording  with the U.S.  Patent and
Trademark Office, the United States Copyright Office and other U.S. governmental
authorities.

                  NOW,  THEREFORE,  for good  and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged,  the Grantor agrees as
follows:

1.       GRANT OF SECURITY.  Each Grantor  hereby  grants to the Secured Party a
         security interest in all of such Grantor's right, title and interest in
         and to the following (the "ADDITIONAL COLLATERAL"):

         (a)      the trademark and service mark  registrations and applications
                  set forth on  SCHEDULE  A hereto  (provided  that no  security
                  interest  shall be  granted  in  United  States  intent-to-use
                  trademark  applications  to the extent that, and solely during
                  the period in which, the grant of a security  interest therein
                  would   impair  the   validity  or   enforceability   of  such
                  intent-to-use  trademark applications under applicable federal
                  law),  together  with the  goodwill  symbolized  thereby  (the
                  "TRADEMARKS");

         (b)      all copyrights,  whether registered or unregistered, now owned
                  or hereafter acquired by such Grantor (the "COPYRIGHTS");


<PAGE>


         (c)      all reissues, divisions, continuations, continuations-in-part,
                  extensions,   renewals  and   reexaminations  of  any  of  the
                  foregoing,   all   rights  in  the   foregoing   provided   by
                  international    treaties   or    conventions,    all   rights
                  corresponding  thereto  throughout  the  world  and all  other
                  rights  of  any  kind  whatsoever  of  such  Grantor  accruing
                  thereunder or pertaining thereto;

         (d)      any and all claims for damages and injunctive relief for past,
                  present and future infringement,  dilution,  misappropriation,
                  violation,  misuse  or  breach  with  respect  to  any  of the
                  foregoing,  with the right, but not the obligation, to sue for
                  and collect, or otherwise recover, such damages; and

         (e)      any and all proceeds of, collateral for, income, royalties and
                  other  payments now or hereafter  due and payable with respect
                  to, and supporting obligations relating to, any and all of the
                  foregoing or arising from any of the foregoing.

2.       SUPPLEMENT  TO  SECURITY  AGREEMENT.   [SCHEDULE  V]  to  the  Security
         Agreement is, effective as of the date hereof,  hereby  supplemented to
         add to such Schedule the Additional Collateral.

3.       SECURITY  FOR  OBLIGATIONS.  The grant of a  security  interest  in the
         Additional  Collateral by the Grantor under this IP Security  Agreement
         Supplement secures the payment of all Obligations of the Grantor now or
         hereafter  existing under or in respect of the Notes,  the Indenture or
         the  Security  Documents,  whether  direct  or  indirect,  absolute  or
         contingent,  and  whether  for  principal,  reimbursement  obligations,
         interest, premiums, penalties, fees, indemnifications,  contract causes
         of action, costs, expenses or otherwise.

4.       RECORDATION.  The Grantor  authorizes and requests that the Register of
         Copyrights  and the  Commissioner  for  Trademarks  and any other  U.S.
         applicable  government  officer to record  this IP  Security  Agreement
         Supplement.

5.       GRANTS, RIGHTS AND REMEDIES.  This IP Security Agreement Supplement has
         been entered into in  conjunction  with the  provisions of the Security
         Agreement.  The Grantor  does hereby  acknowledge  and confirm that the
         grant  of the  security  interest  hereunder  to,  and the  rights  and
         remedies  of,  the  Secured  Party  with  respect  to  the   Additional
         Collateral  are more  fully set forth in the  Security  Agreement,  the
         terms and provisions of which are  incorporated  herein by reference as
         if fully set forth herein.

6.       GOVERNING LAW. This IP Security Agreement  Supplement shall be governed
         by, and  construed  in  accordance  with,  the laws of the State of New
         York.


                                       2
<PAGE>


                  IN WITNESS  WHEREOF,  the  Grantor has caused this IP Security
Agreement  Supplement to be duly executed and delivered by its officer thereunto
duly authorized as of the date first above written.

                                            [ADDITIONAL GRANTOR]



                                            By:
                                                --------------------------------
                                            Name:
                                            Title:

                                            Address for Notices:




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