Document:

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                                                                     EXHIBIT 4.2

                                    FORM OF
                          REGISTRATION RIGHTS AGREEMENT

                                      among

                         INTERNATIONAL STEEL GROUP INC.,

                                       and

                           THE INVESTORS PARTY HERETO

                            Dated as of [    ], 2003

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                                TABLE OF CONTENTS
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                                                                                                               PAGE
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<S>            <C>                                                                                         <C>
Article I         Certain Definitions............................................................................1
Article II        Registration Rights............................................................................3
         2.1      Demand Registration............................................................................3
         2.2      Piggyback Rights...............................................................................5
         2.3      Registration; Filings and Information..........................................................6
         2.4      Registration Expenses..........................................................................9
         2.5      Indemnification by the Company................................................................10
         2.6      Indemnification by Registering Stockholders...................................................10
         2.7      Conduct of Indemnification Proceedings........................................................11
         2.8      Contribution..................................................................................11
         2.9      Participation in Registrations................................................................12
         2.10     Rule 144......................................................................................12
         2.11     Restrictions on Public Sale by Holders of Registrable Shares..................................12

Article III       Termination...................................................................................13
Article IV        Miscellaneous.................................................................................13

         4.1      Successors and Assigns........................................................................13
         4.2      Amendment and Modification; Waiver of Compliance..............................................13
         4.3      Notices.......................................................................................13
         4.4      Inspection....................................................................................14
         4.5      Headings......................................................................................14
         4.6      Recapitalizations, Exchanges, Etc., Affecting Common Stock....................................14
         4.7      Counterparts..................................................................................14
         4.8      Severability..................................................................................14
         4.9      Attorneys' Fees...............................................................................14
         4.10     Integration...................................................................................14
         4.11     Choice of Law.................................................................................15
         4.12     Waivers.......................................................................................15
         4.13     Pronouns and Numbers..........................................................................15
         4.14     Survival of Representations...................................................................15
         4.15     Further Assurances............................................................................15
         4.16     Full Understanding............................................................................15
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                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT dated as of [        ], 2003
(the "Agreement") among International Steel Group Inc., a Delaware corporation
(the "Company"), and the Persons listed on Schedule A hereto, as such schedule
may be updated from time to time (the "Stockholders"), which supercedes and
replaces the Amended and Restated Stockholders Agreement dated as of October 3,
2002 (the "Prior Agreement") among the Company and the Stockholders party
thereto.

                              W I T N E S S E T H:
                              - - - - - - - - - --

                  WHEREAS, the holders of all of the issued and outstanding
Common Stock as of October 3, 2002 entered into the Prior Agreement, which
amended and restated the Stockholders Agreement dated as of April 11, 2002 among
the Company and the Stockholders party thereto.

                  WHEREAS, each of the purchasers of the Company's Class B
Common Stock, par value $0.01 per share, who were not a party to the Prior
Agreement entered into a Joinder Agreement dated as of May 7, 2003 with the
Company to become party to the Prior Agreement.

                  WHEREAS, the Company has consummated the Initial Public
Offering of its Common Stock on the date hereof.

                  WHEREAS, the Company and the Stockholders deem it in the best
interest of the Company in light of the Initial Public Offering of Common Stock
to amend and restate the Prior Agreement to eliminate certain voting and other
restrictions contained in such Prior Agreement.

                  WHEREAS, the Company and at least the requisite number of
Stockholders set forth in Section 8.4 of the Prior Agreement now desire to amend
and restate the Prior Agreement.

                  NOW, THEREFORE, in consideration of the foregoing and the
mutual agreements and understandings set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree that the Prior Agreement shall be
superceded and replaced in its entirety by this Agreement, and the parties
hereto hereby further agree as follows:

                                   ARTICLE I

                               Certain Definitions
                               -------------------

                  As used in this Agreement, the following terms shall have the
following respective meanings:

                  "Affiliate" with respect to a Person, shall mean any other
Person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with such Person. For
the purposes of this definition, "control," when used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such Person, whether
through the ownership of

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voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "Business Day" shall mean any day other than Saturday or
Sunday or any other day on which banks in New York are permitted or required to
close.

                  "Capital Stock" means the Common Stock, the Preferred Stock
and any other class of capital stock of the Company that may be outstanding from
time to time and any Capital Stock Equivalents.

                  "Capital Stock Equivalents" means (without duplication with
any other Capital Stock or Capital Stock Equivalents) rights (including, without
limitation, any rights under any stock bonus plan), warrants and options
(including, without limitation, employee stock options) exercisable for or
convertible or exchangeable into, directly or indirectly, Capital Stock whether
at the time of issuance or upon the passage of time or the occurrence of some
future event.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" shall mean the Company's Common Stock, $.01 par
value per share.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated thereunder.

                  "Initial Public Offering" means the first underwritten public
offering of Common Stock pursuant to an effective registration statement under
the Securities Act, other than pursuant to a registration statement on Form S-4
or Form S-8 or any successor or similar form.

                  "Investors" means those Persons set forth on Schedule A
hereto, other than WLR Funds.

                  "Person" shall mean a corporation, association, partnership,
joint venture, organization, business, individual, trust or any other entity or
organization, including a government or any subdivision or agency thereof.

                  "Preferred Stock" means the Company's Preferred Stock, $.01
par value per share.

                  "Public Offering" means any primary or secondary public
offering of Common Stock of the Company pursuant to an effective registration
statement under the Securities Act, other than pursuant to a registration
statement on Form S-4 or Form S-8 or any successor or similar form.

                  "Registrable Shares" means, with respect to any Person holding
Common Stock of the Company and entitled to registration rights under the terms
of this Agreement or any other agreement with the Company, such shares of Common
Stock and any additional shares of Common Stock ("Additional Shares")
subsequently paid, issued or distributed in respect of such shares by way of
stock dividend or distribution or stock split or in connection with a
combination

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of shares, recapitalization, reorganization, merger, consolidation, pursuant to
the Certificate of Incorporation of the Company, as amended from time to time,
or otherwise. Notwithstanding the foregoing, Registrable Shares will cease to be
Registrable Shares when and to the extent that (i) a registration statement
relating to such securities has been declared effective under the Securities Act
and such Registrable Shares have been disposed of pursuant to such effective
registration statement, (ii) such Registrable Shares have ceased to be
outstanding, or (iii) all such securities owned by a Stockholder may be sold in
a single transaction without registration pursuant to Rule 144 unless a
Stockholder owns 6,516,000 or more Shares in which case all Shares owned by the
Stockholder will continue to be deemed Registrable Securities until the number
of Shares owned is less than 6,516,000.

                  "Registration Expenses" means all (i) registration and filing
fees with the Commission, (ii) fees and expenses of compliance with state
securities or blue sky laws (including without limitation reasonable fees and
disbursements of a qualified independent underwriter, if any, counsel in
connection therewith and the reasonable fees and disbursements of counsel in
connection with blue sky qualifications of the Registrable Shares), (iii)
printing expenses, (iv) internal expenses of the Company (including without
limitation all salaries and expenses of officers and employees performing legal
or accounting duties), (v) fees and expenses of counsel and independent public
accountants for the Company, (vi) fees and expenses of any additional experts
retained by the Company in connection with such registration, (vii) fees and
expenses of listing the Registrable Shares, if any, (viii) transfer taxes, and
(ix) reasonable fees and expenses of one counsel for the Stockholders, which
counsel will be selected by the Stockholders holding a majority of Registrable
Shares held by the Stockholders and included in the registration.

                  "Securities Act" shall mean the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.

                  "Share" means any share of Common Stock of the Company.

                  "WLR Funds" shall mean WLR Recovery Fund L.P. and WLR Recovery
Fund II L.P.

                                   ARTICLE II

                               Registration Rights
                               -------------------

                  2.1 Demand Registration.

                  2.1.1 Subject to paragraphs 2.1.4, 2.1.5 and 2.1.6 of this
Article II, at any time and from time to time following the date that is 180
days after the date of this Agreement, WLR Funds or any Stockholder or group of
Stockholders of no less than an aggregate of 6,516,000 Shares (the "Requesting
Holders") may make a written request for registration under the Securities Act
of all or part of the Requesting Holders' Registrable Shares (a "Demand
Registration"); provided, however, that the right to request a Demand
Registration may be exercised no more than two times by the WLR Funds and three
times by the Investors (provided further, however, it being agreed that no
single Investor may initiate a Demand Registration

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more than one time and that prior to the date that is the first day after the
passage of 12 full calendar months following the date of this Agreement, any or
all of the Investors may only exercise their rights for a Demand Registration
one time, in the aggregate, and the WLR Funds may only exercise their rights for
a Demand Registration two times). Each such request will specify the number of
shares of Registrable Shares proposed to be offered for sale by the Requesting
Holders and will also specify the intended method of disposition thereof. A
registration will not count as a Demand Registration until it has become
effective.

                  2.1.2 If the Requesting Holders elect, the offering of the
Requesting Holders' Registrable Shares pursuant to such Demand Registration will
be in the form of an underwritten Public Offering. Subject to the approval of
the Company, the Requesting Holders will select the managing underwriter and any
additional underwriters in connection with the offering.

                  2.1.3 If, in connection with any Demand Registration that is
to be an underwritten Public Offering, the Company, any other Stockholders or
any other holders of Registrable Shares exercising registration rights also
desire to sell shares of Common Stock and the managing underwriter of such
offering advises the Company, the Requesting Holders and such other Stockholders
in writing that the total number of shares requested to be so included in such
registration exceeds the number of shares of Common Stock which can be sold in
such offering or that the success or pricing of the offering would be materially
and adversely affected by the inclusion of all of the shares of Common Stock
requested to be so included, then the Company will include in such registration
(i) first, the Registrable Shares requested to be included by the Requesting
Holders, such other Stockholders and such other holders exercising registration
rights, allocated pro rata among them in accordance with the number of
Registrable Shares held by each of them so that the total number of Registrable
Shares to be included in such offering for the account of all such Persons will
not exceed the number recommended by such managing underwriter, (ii) second, the
shares of Common Stock the Company proposes to offer for sale, which number of
shares to be registered will be reduced to the extent necessary to reduce the
total number of shares to be included in such offering to the number recommended
by such managing underwriter and (iii) third, such number of other shares of
Common Stock as the holders thereof desire to offer for sale and the Company and
the managing underwriter recommend be included in such offering.

                  2.1.4 Notwithstanding the foregoing provisions of this Section
2.1, the Requesting Holders may not request a Demand Registration (i) if a
registration statement has been filed by the Company with the Commission, unless
such registration statement has been withdrawn or has been effective for a
period of 90 calendar days, or (ii) if an underwritten offering of Common Stock
(whether for the account of the Company or any other security holders) has been
consummated within the preceding nine months; provided, however, the limitations
in clauses (i) and (ii) of this sentence will not apply if the Requesting
Holders were not given the opportunity, in accordance with Section 2.2, to
include its Registrable Shares in the registration statement described in clause
(i) or the underwritten offering described in clause (ii) (as applicable).

                  2.1.5 Notwithstanding the foregoing provisions of this Section
2.1, the Requesting Holders will not have the right to initiate or demand a
registration hereunder unless

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they propose to include therein Registrable Shares which it believes in good
faith to have a value of at least $25,000,000.

                  2.1.6 Notwithstanding the foregoing provisions of this Section
2.1, in the event the Company receives notice of a Demand Registration, the
Company may elect once, but only once, by written notice to the Requesting
Holders within 20 days after receipt of such notice, to proceed with a
registration of Common Stock for the Company's account in lieu of proceeding
with the Demand Registration, in which case the provisions of Section 2.2 (and
not this Section 2.1 ) will apply. If the Company exercises the right described
in the preceding sentence, the Requesting Holders will not be deemed (for
purposes of determining the number of future Demand Registrations that may be
demanded under the terms of this Agreement) to have exercised the right to
request a Demand Registration unless at least 80% of the Registrable Shares that
the Requesting Holders desired to include in such Demand Registration were
included pursuant to Section 2.2.

                  2.1.7 The Requesting Holders shall be permitted to remove all
or any part of the Registrable Shares held by the Requesting Holders from any
Demand Registration at any time prior to the effective date of the registration
statement covering such Registrable Shares; provided, however, if, as a result
of the removal of such Registrable Shares, such registration statement is
withdrawn by the Company, such Demand Registration shall nonetheless count as a
Demand Registration for purposes of determining the number of future Demand
Registrations which can be requested pursuant to Section 2.1 hereof, unless the
Requesting Holders reimburses the Company for all Registration Expenses incurred
by the Company in connection with such withdrawn Demand Registration.

                  2.2 Piggyback Rights.

                  2.2.1 If, other than in connection with an Initial Public
Offering, the Company proposes to file a registration statement under the
Securities Act with respect to an offering of any shares of Common Stock (i) for
its own account (other than a registration statement on Form S-4 or S-8 (or any
substitute form that may be adopted by the Commission)) or (ii) for the account
of any Stockholders pursuant to a Demand Registration requested pursuant to
Section 2.1.1, then the Company will give written notice of such proposed
offering to all Stockholders as soon as practicable (provided that Stockholders
will be given such notice not less than 20 calendar days prior to the deadline
set by the Company for electing to include Registrable Shares in such offering),
and such notice will offer such Stockholders the opportunity, in accordance with
Section 2.2.2, to register such number of shares of Registrable Shares as such
Stockholders may request on the same terms and conditions as the registration of
the Company's or such other holders shares of Common Stock. If the Company so
elects, the offering contemplated by this Section 2.2 will be in the form of an
underwritten offering. The Company will select the managing underwriter and any
additional underwriters in connection with the offering. Any Stockholder
exercising its rights under this Section 3.2 shall have the right to withdraw
such Stockholder's request for inclusion in any registration for the account of
the Company pursuant to this Section 2.3 by giving written notice to the Company
of such withdrawal not later than five Business Days prior to the effective date
of the Company's registration statement.

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                  2.2.2 Whenever the Company proposes to file a registration
statement in accordance with Section 2.2.1, the Company will include in such
registration statement all Registrable Shares which any Stockholder requests to
be included therein; provided, however, that if the managing underwriter of an
underwritten offering under this Section 2.2 advises the Company and such
Stockholders in writing that the total number of shares requested to be included
in such registration exceeds the number of shares of Common Stock which can be
sold in such offering or that the success or pricing of the offering would be
materially and adversely affected by the inclusion of all of the shares of
Common Stock requested to be included, then (except in the case of a Demand
Registration as to which Section 2.1.3 will govern), the Company will include in
such registration (i) first, the shares of Common Stock the Company proposes to
offer for sale for its own account, (ii) second, the Registrable Shares
requested to be included by the Requesting Holders, such other Stockholders and
any other holders of Registrable Shares exercising registration rights,
allocated pro rata among them in accordance with the number of Registrable
Shares held by each of them so that the total number of Registrable Shares to be
included in such offering for the account of all such Persons will not exceed
the number recommended by such managing underwriter, and (iii) third, such
number of other shares of Common Stock as the holders thereof desire to offer
for sale and the Company and the managing underwriter recommend be included in
such offering. Notwithstanding the foregoing, the Company may, at any time,
withdraw or cease proceeding with any registration pursuant to this Section 2.3
if it shall at the same time withdraw or cease proceeding with the registration
of any of the Shares originally proposed to be registered.

                  2.2.3 A request by the Requesting Holders to include
Registrable Shares in a proposed underwritten offering pursuant to this Section
2.2 will not be deemed to be a request for a demand registration pursuant to
Section 2.1.

                  2.3 Registration; Filings and Information. Whenever a
Stockholder (the "Registering Stockholder") requests that any Registrable Shares
be registered pursuant to Section 2.1 or 2.2, the Company will use its
reasonable best efforts to effect the registration of such Registrable Shares to
the extent required by Section 2.1 or 2.2, as promptly as is practicable, and in
connection with any such request the Company:

                  (a) will as expeditiously as possible prepare and file with
         the Commission a registration statement on any form for which the
         Company then qualifies and which counsel for the Company deems
         appropriate and available for the sale of the Registrable Shares to be
         registered thereunder in accordance with the intended method of
         distribution thereof, and use its reasonable best efforts to cause such
         filed registration statement to become and remain effective for a
         period of not less than 90 calendar days or, if less, the period
         required for such Registrable Shares to be sold; provided, however,
         that if the Company furnishes to the Registering Stockholder a
         certificate signed by the Company's Chief Executive Officer stating
         that the Board of Directors has determined that it would be materially
         detrimental or otherwise materially disadvantageous to the Company or
         its stockholders (whether because of any proposed material transaction
         or otherwise) for such a registration statement to be filed as
         expeditiously as possible, the Company will have a period of not more
         than 120 calendar days within which to file such registration Statement
         measured from the date of the Company's receipt of the Registering
         Stockholder's request for registration;

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                  (b) will, if requested, prior to filing such registration
         statement or any amendment or supplement thereto, furnish to the
         Registering Stockholder and each applicable underwriter, if any, copies
         thereof, and thereafter furnish to the Registering Stockholder and each
         such Underwriter, if any, such number of copies of such registration
         statement, amendment and supplement thereto (in each case including all
         exhibits thereto and documents incorporated by reference therein) and
         the prospectus included in such registration statement (including each
         preliminary prospectus) as the Registering Stockholder or each such
         underwriter may reasonably request in order to facilitate the sale of
         the Registrable Shares;

                  (c) after the filing of the registration statement, will
         promptly notify the Registering Stockholder of any stop order issued
         or, to the Company's knowledge, threatened to be issued by the
         Commission or any state securities agency or authority and take all
         reasonable actions required to prevent the entry of such stop order or
         to remove it if entered;

                  (d) will endeavor to qualify the Registrable Shares for offer
         and sale under such other securities or blue sky laws of such
         jurisdictions in the United States as the Registering Stockholder
         reasonably requests; provided, however, that the Company will not be
         required to (i) qualify generally to do business in any jurisdiction
         where it would not otherwise be required to quality but for this
         subsection (d), (ii) subject itself to taxation in any such
         jurisdiction, or (iii) consent to general service of process in any
         such jurisdiction;

                  (e) will as promptly as is practicable notify the Registering
         Stockholder, at any time when a prospectus relating to the sale of the
         Registrable Shares is required by law to be delivered in connection
         with sales by an underwriter or dealer, of the occurrence of any event
         requiring the preparation of a supplement or amendment to such
         prospectus so that, as thereafter delivered to the purchasers of such
         Registrable Shares, such prospectus will not contain an untrue
         statement of a material fact or omit to state any material fact
         required to be stated therein or necessary to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading and promptly make available to the Registering
         Stockholder and to the underwriters any such supplement or amendment.
         The Registering Stockholder agrees that, upon receipt of any notice
         from the Company of the occurrence of any event of the kind described
         in the preceding sentence, the Registering Stockholder will forthwith
         discontinue the offer and sale of Registrable Shares pursuant to the
         registration statement covering such Registrable Shares until receipt
         by the Registering Stockholder and the underwriters of the copies of
         such supplemented or amended prospectus and, if so directed by the
         Company, the Registering Stockholder will deliver to the Company all
         copies, other than permanent file copies then in the Registering
         Stockholder possession, of the most recent prospectus covering such
         Registrable Shares at the time of receipt of such notice. In the event
         the Company gives such notice, the Company will extend the period
         during which such registration statement will be effective as provided
         in Section 2.3(a) by the number of days during the period from and
         including the date of the giving of such notice to the date when the
         Company will make available to the Registering Stockholder such
         supplemented or amended prospectus;

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                  (f) will enter into customary agreements (including in the
         case of an underwritten offering an underwriting agreement in customary
         form) and the Company and its officers will take such other actions as
         are reasonably required in order to expedite or facilitate the sale of
         such Registrable Shares, including participation in a "road show"
         undertaken in connection with such sale.

                  (g) in the case of an underwritten offering, will furnish to
         the Registering Stockholder and to each underwriter a signed
         counterpart, addressed to the Registering Stockholder or such
         underwriter, of (i) an opinion or opinions of counsel to the Company
         and (ii) a comfort letter or comfort letters from the Company's
         independent public accountants, each in customary form and covering
         such matters of the type customarily covered by opinions or comfort
         letters, as the case may be, as the Registering Stockholder or the
         managing underwriter may reasonably request;

                  (h) will make generally available to its security holders, as
         soon as reasonably practicable, an earnings statement covering a period
         of 12 months, beginning within three months after the effective date of
         the registration statement, which earnings statement will satisfy the
         provisions of Section 11(a) of the Securities Act and the rules and
         regulations of the Commission thereunder;

                  (i) will use its reasonable efforts to cause all such
         Registrable Shares to be listed on each securities exchange on which
         securities of the same class issued by the Company are then listed;

                  (j) may require the Registering Stockholder promptly to
         furnish in writing to the Company such information regarding the
         Registering Stockholder, the plan of distribution of the Registrable
         Shares and other information as the Company may from time to time
         reasonably request or as may be legally required in connection with
         such registration. The furnishing of such information will be a
         condition to the Company's obligations hereunder;

                  (k) will notify each Registering Stockholder, its counsel and
         the managing underwriters, if any, as soon as possible and (if
         requested by any such Person) confirm such notice in writing, (i) when
         a prospectus relating to the Registrable Shares or any prospectus
         supplement or post-effective amendment has been filed and, with respect
         to a registration statement relating to the Registrable Shares or any
         post-effective amendment, when the same has become effective, (ii) of
         any request by the Commission for amendments or supplements to a
         registration statement relating to the Registrable Shares or related
         prospectus or for additional information, (iii) of the issuance by the
         Commission of any stop order suspending the effectiveness of a
         registration statement relating to the Registrable Shares or the
         initiation of any proceedings for that purpose, (iv) of the receipt by
         the Company of any notification with respect to the suspension of the
         qualification of any of the Registrable Shares for sale in any
         jurisdiction or the initiation or threatening of any proceeding for
         such purpose, and (v) of the Company's reasonable determination that a
         post-effective amendment to a registration statement relating to the
         Registrable Shares would be appropriate or that there exist
         circumstances

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         not yet disclosed to the public which make further sales under such
         registration statement inadvisable pending such disclosure and
         post-effective amendment;

                  (l) upon the occurrence of any event contemplated by paragraph
         (e) above, promptly prepare a supplement or post-effective amendment to
         the registration statement relating to the Registrable Shares or
         related prospectus or any document incorporated therein by reference or
         file any other required document so that (i) such registration
         statement will not contain any untrue statement of a material fact or
         omit to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading or (ii) as
         thereafter delivered to the purchasers of the Registrable Shares being
         sold thereunder, such prospectus will not include an untrue statement
         of a material fact or omit to state a material fact necessary in order
         to make the statements therein in light of the circumstances under
         which they were made, not misleading; and (iii) will make every
         reasonable effort to obtain the withdrawal of any order suspending the
         effectiveness of a registration statement relating to the Registrable
         Shares, or the lifting of any suspension of the qualification of any of
         the Registrable Shares for sale in any jurisdiction, at the earliest
         possible moment;

                  (m) (i) if reasonably requested by the managing underwriter or
         any Registering Stockholder, promptly incorporate in a prospectus
         supplement or post-effective amendment such information concerning such
         Registering Stockholder, the managing underwriter or underwriters or
         the intended method of distribution as the managing underwriter or
         underwriters or the Registering Stockholder reasonably requests to be
         included therein and as is appropriate in the reasonable judgment of
         the Company including, without limitation, information with respect to
         the number of shares of the Registrable Shares being sold to such
         underwriter or underwriters, the purchase price being paid therefor by
         such underwriter or underwriters, the purchase price being paid
         therefor by such underwriter or underwriters and with respect to any
         other terms of the underwritten (or best efforts underwritten) offering
         of the Registrable Shares to be sold in such offering; and (ii) make
         all required filings of such prospectus supplement or post-effective
         amendment as promptly as practicable after being notified of the
         matters to be incorporated therein;

                  (n) will furnish to each Registering Stockholder and each
         managing underwriter, if any, without charge, one manually signed copy
         of the registration statement relating to the Registrable Shares and
         any post-effective amendments thereto, including financial statements
         and schedules and, upon request, all documents incorporated therein by
         reference and all exhibits (including those incorporated by reference);
         and

                  (o) will provide a transfer agent and registrar for the
         Registrable Shares not later than the effective date of the
         registration statement relating to the Registrable Shares.

                  2.4 Registration Expenses. Registration Expenses incurred in
connection with any registration made or requested to be made pursuant to this
Article II will be borne by the Company, whether or not any such registration
statement becomes effective, to the extent

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permitted by applicable law. The Registering Stockholders will pay, on a pro
rata basis, any underwriting fees, discounts or commissions attributable to the
sale of the Registrable Shares. In addition, but not in duplication of, the
foregoing, each Registering Stockholder shall be entitled to reimbursement from
the Company for any out-of-pocket losses actually incurred in the event, and
only to the extent, that such Registering Stockholder suffers such losses as a
result of such Registering Stockholder's inability to make delivery of sold
Registrable Shares due to the Company's breach of its commitment to provide
timely notice as required by Section 2.3(k)(iii), (iv) or (v).

                  2.5 Indemnification by the Company. The Company agrees to
indemnify and hold harmless each Registering Stockholder, its Officers,
directors, members, managers and agents, and each Person, if any, who controls
each such Registering Stockholder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and all
losses, claims, damages, liabilities and expenses caused by any untrue statement
or alleged untrue statement of a material fact contained in any registration
statement or prospectus relating to the Registrable Shares (as amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto) or any preliminary prospectus, or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages, liabilities or expenses are caused by any such untrue
statement or omission or alleged untrue statement or omission based upon
information furnished in writing to the Company by or on behalf of such
Registering Stockholder or any underwriter expressly for use therein; provided,
however, that the foregoing indemnity agreement with respect to any preliminary
prospectus will not inure to the benefit of any Registering Stockholder if a
copy of the current prospectus was not provided in the manner required by
applicable regulations to the applicable purchaser by such Registering
Stockholder and such current copy of the prospectus would have cured the defect
giving rise to such loss, claim, damage, liability or expenses. The Company also
agrees to indemnify any underwriters of the Registrable Shares, their officers
and directors and each Person who controls such underwriters on substantially
the same basis as that of the indemnification of the Registering Stockholders
provided in this Section 2.5.

                  2.6 Indemnification by Registering Stockholders. Each
Registering Stockholder registering shares pursuant to this Article II agrees,
severally but not jointly, to indemnify and hold harmless the Company, its
officers and Directors and each Person, if any, who controls the Company within
the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the foregoing indemnity from the Company to
such Registering Stockholder, but only with reference to information related to
such Registering Stockholder furnished in writing by or on behalf of such
Registering Stockholder expressly for use in any registration statement or
prospectus relating to the Registrable Shares, or any amendment or supplement
thereto or any preliminary prospectus; provided, however, that in no event will
the liability of any Registering Stockholder under this Section 2.6 be greater
in amount than the dollar amount of the proceeds received by such holder upon
the sale of the Registrable Shares giving rise to such indemnification
obligation. Each such Registering Stockholder also agrees to indemnify and hold
harmless any underwriters of the Registrable Shares, their officers and
directors and each Person who controls such underwriters on such terms as
provided for in underwriting agreement relating to such offering.

                                       10
<PAGE>

                  2.7 Conduct of Indemnification Proceedings. In the case any
proceeding (including any governmental investigation) is instituted involving
any Person in respect of which indemnity may be sought pursuant to Section 2.5
or Section 2.6, such Person will promptly notify the Person against whom such
indemnity may be sought in writing and the indemnifying party upon request of
the indemnified party will retain counsel reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and will pay the fees and
disbursements of such counsel related to the proceeding; provided, however, that
the failure to so notify the indemnifying Person shall not relieve the
indemnifying party from any liability that it may otherwise have to such
indemnified Person, except to the extent the indemnifying Person shall have been
materially prejudiced by such failure. In any such proceeding, any indemnified
party will have the right to retain its own counsel, but the fees and expenses
of such counsel will be at the expense of such indemnified party unless (a) the
indemnifying party and the indemnified party have mutually agreed to the
retention of such counsel or (b) the named parties to any such proceeding
(including any impleaded parties) include both the indemnified party and the
indemnifying party and representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them, in
which case the fees and expenses of such counsel will be paid by the Company. It
is understood that the indemnifying party will not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) at any time for all such indemnified parties, and
that all such reasonable fees and expenses will be reimbursed as they are
incurred. In the case of the retention of any such separate firm for the
indemnified parties, such firm will be designated in writing by the indemnified
parties. The indemnifying party will not be liable for any settlement of any
proceeding effected without its consent, but if settled with such consent, or if
there be a final judgment for the plaintiff, the indemnifying party will
indemnify and hold harmless such indemnified parties from and against any loss
or liability (to the extent stated above) by reason of such settlement or
judgment.

                  2.8 Contribution.

                  (a) If the indemnification provided for herein is for any
         reason unavailable to the indemnified parties in respect of any losses,
         claims, damages or liabilities referred to herein, then each such
         indemnifying party, in lieu of indemnifying such indemnified party,
         will contribute to the amount paid or payable by such indemnified party
         as a result of such losses, claims, damages or liabilities in such
         proportion as is appropriate to reflect the relative fault of the
         Company, the Registering Stockholders and any underwriter in connection
         with the statements or omissions which resulted in such losses, claims,
         damages or liabilities, as well as any other relevant equitable
         considerations. The relative fault of the Company, the Registering
         Stockholders and the underwriter will be determined by reference to,
         among other things, whether the untrue or alleged untrue statement of a
         material fact or the omission or alleged omission to state a material
         fact relates to information supplied by such party, and the parties'
         relative intent, knowledge, access to information and opportunity to
         correct or prevent such statement or omission.

                  (b) The Company and each Registering Stockholder agree that it
         would not be just and equitable if contribution pursuant to this
         Section 2.8 were

                                       11
<PAGE>

                  determined by pro rata allocation (even if the underwriters
                  were treated as one entity for such purpose) or by any other
                  method of allocation which does not take account of the
                  equitable considerations referred to in the immediately
                  preceding subsection. The amount paid or payable by an
                  indemnified party as a result of the losses, claims, damages
                  or liabilities referred to in the immediately preceding
                  subsection will be deemed to include, subject to the
                  limitations set forth above, any legal or other expenses
                  reasonably incurred by such indemnified party in connection
                  with investigating or defending any such action or claim.
                  Notwithstanding the provisions of this Section 2.8, no
                  Registering Stockholder will be required to contribute any
                  amount by reason of such untrue or alleged untrue statement or
                  omission or alleged omission in excess of the amount received
                  by such Registering Stockholder upon the sale of the
                  Registrable Shares giving rise to such contribution
                  obligation. No person guilty of fraudulent misrepresentation
                  (within the meaning of Section 11(f) of the Securities Act)
                  will be entitled to contribution from any person who was not
                  guilty of such fraudulent misrepresentation.

                  2.9 Participation in Registrations. The Company may require
each holder of Registrable Shares as to which any registration is being effected
to furnish the Company all such information regarding the manner of distribution
of such Registrable Shares as the Company may reasonably request in writing and
such other information as may be legally required in connection with such
registration. Notwithstanding any other provision of this Agreement, no Person
may participate in any underwritten registration hereunder unless such Person
(a) agrees to sell such Person's securities on the basis provided in any
reasonable underwriting arrangements, if any, approved by the Company or other
Persons entitled hereunder to approve such arrangements and (b) completes and
executes all customary questionnaires, powers of attorney, indemnities,
underwriting agreements, "lock-up" agreements and other documents reasonably
required under the terms of such underwriting arrangements and these
registration rights.

                  2.10 Rule 144. Upon consummation of the Initial Public
Offering, the Company will file any reports required to be filed by it under the
Securities Act and the Exchange Act and will take such further action as any
Stockholder may reasonably request to the extent required from time to time to
enable the Stockholders to sell Registrable Shares without registration under
the Securities Act within the limitation of the exemptions provided by Rule 144
under the Securities Act, as such Rule may be amended from time to time, or
other appropriate rule or regulation adopted by the Commission. Upon the request
of any Stockholder, the Company will deliver to the Stockholder a written
statement as to whether the Company has complied with such reporting
requirements.

                  2.11 Restrictions on Public Sale by Holders of Registrable
Shares. If and to the extent requested by the managing underwriter or
underwriters in the case of an underwritten Public Offering, each of the
Stockholders agrees not to effect, except as part of such registration, any sale
of the shares of Common Stock or a similar security of the Company, or any
securities convertible into or exchangeable or exercisable for such securities
during such time period (not to exceed 180 days) for which the Company agrees
not to effect any sale of securities in connection therewith, or to which the
Registering Stockholder agrees if the Company does not include any securities
therein. In addition, each of the Stockholders agrees to execute any customary
lock-up agreement reasonably requested by the managing underwriter to confirm
its

                                       12
<PAGE>

agreement in accordance with the preceding sentence, but only if identical
lock-up agreements are required of all Stockholders.

                                  ARTICLE III

                                   Termination
                                   -----------

                  The Agreement shall terminate on the date on which all Shares
subject to this Agreement cease to be Registrable Shares. Notwithstanding the
foregoing, this Agreement shall in any event terminate with respect to any
Stockholder when such Stockholder no longer owns any shares of the Common Stock
or Capital Stock Equivalents.

                                   ARTICLE IV

                                  Miscellaneous
                                  -------------

                  4.1 Successors and Assigns. Except as otherwise provided
herein, all of the terms and provisions of this Agreement shall be binding upon,
shall inure to the benefit of and shall be enforceable by the respective
successors and assigns of the parties hereto. The Company may not assign any of
its rights hereunder to any Person other than an Affiliate of the Company. If
any transferee of any Stockholder shall acquire any Shares in any manner,
whether by operation of law or otherwise, such shares shall be held subject to
all of the terms of this Agreement, and by taking and holding such shares such
Person shall be entitled to receive the benefits of and be conclusively deemed
to have agreed to be bound by and to comply with all of the terms and provisions
of this Agreement.

                  4.2 Amendment and Modification; Waiver of Compliance.

                  4.2.1 This Agreement may be amended only by a written
instrument duly executed by the Company and Stockholders holding no less than 66
2/3% of the Shares subject to this Agreement.

                  4.2.2 Except as otherwise provided in this Agreement, any
failure of any of the parties to comply with any obligation, covenant, agreement
or condition herein may be waived by the party entitled to the benefits thereof
only by a written instrument signed by the party granting such waiver, but such
waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure.

                  4.3 Notices. Any notice, request, claim, demand, document and
other communication hereunder to any party shall be in writing and delivered
personally or sent by telex, telecopy, nationally recognized overnight courier
or certified or registered mail, postage prepaid, or other similar means of
communication, as follows:

                  (a) If to the Company, addressed to its principal executive
         offices to the attention of its Chief Executive Officer; and

                                       13
<PAGE>

                  (b) If to a Stockholder, to the address of such Stockholder
         set forth on Schedule A, as updated from time to time, or to such other
         address as such Stockholder shall have specified by notice given to the
         Company and the other Stockholders in the manner specified above.

                  Notice by facsimile or hand delivery shall be deemed to have
been received by the close of the Business Day on which it was transmitted or
hand delivered (unless transmitted or hand delivered after close of business in
which case it shall be deemed received at the close of the next Business Day).
Notice by overnight mail or courier shall be deemed to have been received by the
close of business on the first Business Day after such notice was sent. Notice
sent by certified or registered mail shall be deemed received on the date
delivery was first attempted by the U.S. Postal Service.

                  4.4 Inspection. For so long as this Agreement shall be in
effect, this Agreement shall be made available for inspection by any Stockholder
or prospective transferee of any Stockholder at the principal executive offices
of the Company.

                  4.5 Headings. The Article, Section and Paragraph headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

                  4.6 Recapitalizations, Exchanges, Etc., Affecting Common
Stock. The provisions of this Agreement shall apply to the full extent set forth
herein with respect to Common Stock, to any and all shares of Capital Stock of
the Company (including the capital stock of any successor or assign of the
Company, whether by merger, consolidation, sale of assets, or otherwise) which
may be issued in respect of, in exchange for, or in substitution of, Common
Stock and shall be appropriately adjusted for any stock dividends, splits,
reverse splits, combinations, recapitalization and the like occurring after the
date hereof.

                  4.7 Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                  4.8 Severability. If any provision herein, or the application
thereof to any circumstance, is found to be unenforceable, invalid or illegal,
such provision shall be deemed deleted from this Agreement or not applicable to
such circumstance, as the case may be, and the remainder of this Agreement shall
not be affected or impaired thereby.

                  4.9 Attorneys' Fees. If any action is brought to enforce or
interpret any part of this Agreement or any other agreement or instrument
provided for herein or the rights or obligations of any party to this Agreement
or such other agreement or instrument, the prevailing parry in such action shall
be entitled to recover its reasonable attorney's fees and expenses.

                  4.10 Integration. This Agreement expresses the entire
agreement and understanding of the parties hereto with respect to the matters
set forth herein and supersedes all prior agreements (including the Prior
Agreement), arrangements and understandings among the parties hereto with
respect to the matters set forth herein.

                                       14
<PAGE>

                  4.11 Choice of Law. This Agreement shall be construed,
enforced and governed by the internal laws of the State of New York without
regard to its conflicts of law principles.

                  4.12 Waivers. No waiver of any term, provision or condition of
this Agreement, in any one or more instances, shall be deemed to be or construed
as a further waiver of any such term, provision or condition or as a waiver of
any other term, provision or condition.

                  4.13 Pronouns and Numbers. When the context so requires, the
masculine shall include the feminine and neuter, the singular shall include the
plural and conversely.

                  4.14 Survival of Representations. All representations and
warranties set forth in this Agreement shall survive the execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby.

                  4.15 Further Assurances. The parties hereto agree to execute
any and all such further agreements, instruments or documents, and to take any
and all such further action, as may be necessary or desirable to carry into
effect the purpose and intent of this Agreement.

                  4.16 Full Understanding. Each of the parties hereto represents
and agrees that such party fully understands his or its rights, and has had the
opportunity to discuss all aspects of this Agreement with his or its attorney,
and that to the extent, if any, that he or it desired, he or it availed itself
of such right and opportunity. Each party further represents that he or it has
carefully read and fully understands all of the provisions of this Agreement,
and the meaning, intent and consequences thereof, that he is competent to
execute this Agreement, that it, or its representative, is duly authorized to
execute this Agreement, that his or its execution and delivery of this Agreement
has not been obtained by any duress and that he or it freely and voluntarily
enters into this Agreement.

                                       15
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be duly executed on the date first above written.

                                         THE COMPANY:

                                         INTERNATIONAL STEEL GROUP INC.

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

                                         WLR FUNDS:

                                         WLR RECOVERY FUND LP.
                                         By WLR Recovery Associates LLC, its
                                         General Partner

                                         By:
                                            -----------------------------------
                                             Name:  David L. Wax
                                             Title:  Principal Member

                                         WLR RECOVERY FUND II L.P.
                                         By WLR Recovery Associates II LLC, its
                                         General Partner

                                         By:
                                            -----------------------------------
                                             Name:  David L. Wax
                                             Title:  Principal Member

                                       16
<PAGE>
                                         INVESTORS:

                                         CLEVELAND-CLIFFS INC

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

                                         CLEVELAND-CLIFFS INC AND
                                         ASSOCIATED COMPANIES COLLECTIVE
                                         INVESTMENT TRUST

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

                                         --------------------------------------
                                         Rodney B. Mott

                                         GEORGIA FINANCIAL, LLC

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

                                       17
<PAGE>

                                         MUTUAL SHARES FUND,
                                         MUTUAL QUALIFIED FUND,
                                         MUTUAL BEACON FUND,
                                         MUTUAL DISCOVERY FUND,
                                         MUTUAL SHARES SECURITIES FUND,
                                         MUTUAL DISCOVERY SECURITIES FUND,
                                         MUTUAL BEACON FUND (Canada), and
                                         FRANKLIN MUTUAL BEACON FUND

                                         By FRANKLIN MUTUAL ADVISERS, LLC

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

                                         HOWARD HUGHES MEDICAL INSTITUTE

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

                                         INDOFIN, N.V.

                                         By:
                                            -----------------------------------
                                             Name: Pieter van Dongen
                                             Title: Director

                                         --------------------------------------
                                         John L. Loeb, Jr.

                                         LORD BALTIMORE EQUITY
                                         PARTNERS II, LLC

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

                                       18
<PAGE>
                                         --------------------------------------
                                         William C. Bartholomay

                                         BARTHOLOMAY INTEREST L.P.

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

                                         GE CAPITAL CFE, INC.

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

                                         GS PRIVATE EQUITY PARTNERS II, L.P.
                                         By: GS PEP II Advisors, L.L.C.,
                                             General Partner
                                         By:  GSAM Gen-Par, L.L.C., Managing
                                              Partner

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

                                         GS PRIVATE EQUITY PARTNERS
                                         II OFFSHORE, L.P.
                                         By: GS PEP II Offshore Advisors, Inc.,
                                              General Partner

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

                                       19
<PAGE>

                                         GS PRIVATE EQUITY PARTNERS II -
                                         DIRECT INVESTMENT FUND, L.P.
                                         By: GS PEP II Direct Investment
                                             Advisors, L.L.C.,
                                         General Partner
                                         By: GSAM Gen-Par, L.L.C., Managing
                                             Partner

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

                                         GS DISTRESSED OPPORTUNITIES FUND, L.P.
                                         By: GS Distressed Opportunities
                                             Advisors, L.L.C.,
                                         General Partner
                                         By:  GSAM Gen-Par, L.L.C., Managing
                                              Member

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

                                         GS DISTRESSED OPPORTUNITIES FUND
                                         OFFSHORE HOLDINGS, L.P.
                                         By: GS Distressed Opportunities
                                             Offshore Holdings Advisors, Inc.,
                                             General Partner

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

                                         GS DISTRESSED OPPORTUNITIES EMPLOYEE
                                         FUND, L.P.
                                         By: GS Distressed Opportunities
                                             Employee Funds GP, LLC.,
                                         General Partner

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

                                       20
<PAGE>
                                         ARROWSMITH FUND, LTD.

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

                                         ANN ARBOR PARTNERS, L.P.

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

                                         PERMAL GLOBAL HIGH YIELD HOLDINGS N.V.

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

                                         CITCO GLOBAL CUSTODY (NA) N.V.

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

                                         THE WHITTEMORE COLLECTION, LTD

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

                                       21
<PAGE>
                                         --------------------------------------
                                         Pamela Wilson

                                         --------------------------------------
                                         George Mason

                                         --------------------------------------
                                         Gregory P. Lamb

                                         --------------------------------------
                                         David H. Storper

                                         --------------------------------------
                                         David L. Wax

                                         --------------------------------------
                                         Stephen J. Toy

                                         --------------------------------------
                                         Peter A. Lusk

                                         --------------------------------------
                                         Stephen C. Smith

                                         --------------------------------------
                                         Wendy L. Teramoto

                                       22
<PAGE>
                                         UBS AG, LONDON BRANCH

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

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

                                         CARGILL FINANCIAL SERVICES
                                         INTERNATIONAL, INC.

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

                                         COREPLUS PRIVATE EQUITY PARTNERS
                                         QP, L.P.

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

                                         PMG-NG DIRECT INVESTMENT FUND, L.P.

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

                                       23
<PAGE>
                                         SPECIAL PRIVATE EQUITY PARTNERS, L.P.

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

                                         COREPLUS PRIVATE EQUITY PARTNERS
                                         GMBH & CO. KG

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

                                         --------------------------------------
                                         Michael J. Gibbons

                                         --------------------------------------
                                         John C. Mang, III

                                       24<PAGE>
                                                                    EXHIBIT 10.4

                         INTERNATIONAL STEEL GROUP INC.
                        OFFICER CASH AND STOCK BONUS PLAN

                  (AS AMENDED AND RESTATED AS OF JUNE 16, 2003)

     1. PURPOSE. The purpose of the Plan is to provide incentives for Officers
of the Company to increase the profitability and growth of the Company and to
provide Officers an opportunity for an ownership interest in the Company.

     2. EFFECTIVE DATE AND TERM OF PLAN. The Effective Date of the Plan is June
28, 2002 and the Plan was amended and restated effective as of June 16, 2003.
The Plan shall terminate on June 28, 2005, unless extended or earlier terminated
by the Board.

     3. DEFINITIONS.

          3.1 "ADJUSTED DISTRIBUTION POOL" has the meaning assigned to such term
     in Section 6.2.

          3.2 "ADJUSTED POST-TAX NET INCOME" means, for any Year, consolidated
     net income of the Company, after taxes, but before extraordinary items and
     bonuses payable to Participants under this Plan, as determined by the
     Company's outside auditors; provided, however, that, to the extent
     reasonably determinable, the effect upon Adjusted Post-Tax Net Income of
     start-up expenses relating to the start-up of the Company's facilities for
     a period not to exceed twelve (12) months following April 12, 2002 shall be
     excluded from and not taken into account in determining such Adjusted
     Post-Tax Net Income.

          3.3 "BASE SALARY" means, with respect to a Participant, the regular
     annual rate of salary paid in a Year for services rendered (or which would
     have been paid in a Year with respect to a Participant whose employment
     terminates during the Year) without including any bonus (paid under this
     Plan or otherwise) or severance pay.

          3.4 "BOARD" means the Board of Directors of the Company.

          3.5 "CAPITAL" means, as of the end of any Year, the total of (i)
     paid-in capital, plus (ii) surplus, plus (iii) retained earnings, as set
     forth on the Company's audited balance sheet as of the last day of such
     Year.

          3.6 "CODE" means the Internal Revenue Code of 1986, as amended from
     time to time.

          3.7 "COMMITTEE" means a Committee of the Board as contemplated by
     Section 5.

          3.8 "COMPANY" means International Steel Group Inc., a Delaware
     corporation, and its subsidiaries; provided, however, that for purposes of
     Sections 3.20, 4.2, 4.3 and the

<PAGE>

     Change in Control definition contained in Section 7, the term
     "Company" shall mean solely International Steel Group Inc.

          3.9 "DISTRIBUTION POOL" means, for any Year, an amount determined by
     multiplying (x) Adjusted Post-Tax Net Income, minus an amount equal to ten
     percent (10%) of "Capital", by (y) six percent (6%), as such percentage may
     be adjusted up or down by the Committee from time to time, but no more than
     once per Year and otherwise as subject to the requirements of Section
     162(m) of the Code, at such time, if any, as the Company becomes subject to
     Section 162(m) of the Code.

          3.10 "EFFECTIVE DATE" has the meaning assigned to such term in
     Section 2.

          3.11 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
     amended from time to time.

          3.12 "FAIR MARKET VALUE" means, as of any date, the value of the Stock
     determined as follows:

               (i) If the Stock is listed on any established stock exchange or a
          national market system, including without limitation the NASDAQ
          National Market of the National Association of Securities Dealers,
          Inc. Automated Quotation (NASDAQ) System, the Fair Market Value of a
          share of Stock shall be the closing sales price for such Stock (or the
          closing bid, if no sales were reported) as quoted on such system or
          exchange (or the exchange with the greatest volume of trading in the
          Stock) on the last market trading day prior to the day of
          determination, as reported in the Wall Street Journal or such other
          source as the Committee deems reliable;

               (ii) If the Stock is quoted on the NASDAQ System (but not on the
          NASDAQ National Market thereof) or is regularly quoted by a recognized
          securities dealer but selling prices were not reported, the Fair
          Market Value of a share of Common Stock shall be the mean between the
          high bid and low asked prices for the Stock on the last market trading
          day prior to the day of determination, as reported in the Wall Street
          Journal or such other source for such date the Committee deems
          reliable;

               (iii) In the absence of an established market for the Stock, the
          Fair Market Value shall be established by the Committee for such date
          using any reasonable method of valuation.

          3.13 "INITIAL PUBLIC OFFERING" means the Company's first public
     offering conducted by a nationally recognized underwriter pursuant to an
     effective registration statement filed under the Securities Act of 1933, as
     amended, covering the offer and sale of the Company's equity securities, in
     whole or in part, for the account of the Company.

          3.14 "OFFICER" means an officer of the Company who is from time to
     time designated as an "Officer" Participant by the Committee. A
     Participant's status may be changed from year to year.

                                       2
<PAGE>

          3.15 "PARTICIPANT" means those Officers selected from time to time to
     participate in the Plan by the Committee.

          3.16 "PARTICIPANT'S ADJUSTED BASE SALARY" (a) for purposes of the cash
     portion of the bonus described in Section 6.1, means, with respect to any
     Officer who is a Participant, two (2) times the Officer's Base Salary and
     (b) for purposes of the stock (or cash) portion of the bonus described in
     Section 6.2, means, with respect to an Officer who is a Participant, the
     Officer's Base Salary.

          3.17 "PARTICIPANT'S BONUS PERCENTAGE" means, in any Year with respect
     to a Participant, a fraction, the numerator of which is equal to the
     Participant's Adjusted Base Salary and the denominator of which is equal to
     the sum of all the Participants' Adjusted Base Salaries (including for this
     purpose those Participants, if any, whose employment terminates on or
     before the last day of such Year) calculated separately for purposes of the
     separate bonus portions described in Sections 6.1 and 6.2.

          3.18 "PLAN" means the International Steel Group Inc. Officer Cash and
     Stock Bonus Plan, as set forth herein and as it may be amended from time to
     time.

          3.19 "RESTRICTED STOCK" means Stock issued pursuant to the Plan as
     contemplated by Section 6.2.

          3.20 "RETIREMENT" means voluntary retirement by a Participant who is
     at least 65 years old.

          3.21 "STOCK" means the $0.01 par value common stock of the Company,
     and may include a fractional share of Stock.

          3.22 "VESTED SHARES" has the meaning assigned to such term in
     Section 7.

          3.23 "YEAR" means the Company's fiscal year, with the first Year
     ending on December 31, 2002.

     4. SHARES OF STOCK SUBJECT TO THE PLAN.

          4.1 The total number of shares of Stock of the Company reserved and
     available for distribution pursuant to the Plan shall not exceed, in the
     aggregate, 306 shares of the authorized Stock of the Company, subject to
     adjustment as described below.

          4.2 Prior to the consummation of the Initial Public Offering, Stock
     which may be acquired under the Plan may be either authorized but unissued
     shares or shares of issued Stock held by the Company's treasury, or both,
     in the sole discretion of the Committee. Following the consummation of the
     Initial Public Offering, any shares of Stock to be issued or delivered
     pursuant to the Plan must be purchased by the Company in the open market.
     Whenever any Stock is forfeited under the Plan, the shares forfeited may
     again be issued hereunder.

                                       3
<PAGE>

          4.3 In the event of any stock dividend, stock split, combination or
     exchange of shares, recapitalization or other change in the capital
     structure of the Company, corporate separation or division (including, but
     not limited to, split-up, split-off, spin-off or distribution to Company
     stockholders other than a normal cash dividend), sale by the Company of all
     or a substantial portion of its assets, rights offering, merger,
     consolidation, reorganization or partial or complete liquidation, or any
     other corporate transaction or event having an effect similar to any of the
     foregoing, the aggregate number of shares reserved for issuance under the
     Plan, as the Committee shall deem necessary or appropriate to reflect
     equitably the effects of such changes, shall be appropriately substituted
     for new shares or adjusted, as determined by the Committee in its sole
     discretion.

     5. ADMINISTRATION. The Plan shall be administered by the Board or, if
appointed by the Board, a committee of directors (the "Committee") of the
Company consisting of at least two (2) members of the Board, each of whom shall
be both (i) a "Non-Employee Director" within the meaning of Rule l6b-3
promulgated under Section 16 of the Exchange Act or any successor provision, and
(ii) an "outside director" within the meaning of Section 162(m) of the Code;
provided, however, that from and after the date on which the Company is required
to register any class of its equity securities under Section 12 of the Exchange
Act, the Plan shall be administered by such a Committee. The members of the
Committee shall be selected by the Board. During any period of time in which the
Plan is administered by the Board, all references in the Plan to the Committee
shall be deemed to refer to the Board.

     The Committee shall administer the Plan so as to comply at all times with
Rule l6b-3 of the Exchange Act, and Section 162(m) of the Code or any other
qualifying laws or rules that may be applicable from time to time. To the extent
that any provision hereof is found not to be in compliance with any such Rule or
requirements the Committee shall have the full power and authority to effect
such changes or amendments, without the necessity of any further approval by
shareholders. Subject to the foregoing, the Board may from time to time increase
the size of the Committee and appoint additional members, remove members (with
or without cause), substitute new members, and fill vacancies (however caused).
A majority of the members of the Committee shall constitute a quorum, and the
actions of a majority of the members of the Committee at a meeting at which a
quorum is present shall be the actions of the Committee.

     The Committee has the exclusive power, authority and discretion to adopt,
alter and repeal such administrative rules, guidelines and practices governing
the Plan as it shall from time to time deem advisable and to interpret the terms
and provisions of the Plan. The Committee may require that a Participant sign a
contract or agreement evidencing the terms and conditions of the Participant's
rights to receive a bonus under this Plan. The Committee's interpretation of the
Plan shall be final, binding and conclusive on all parties.

     The Committee may employ such legal counsel, consultants and agents as it
may deem desirable for the administration of the Plan and may rely upon any
opinion received from any such counsel or consultant and any computation
received from any such consultant or agent. Expenses incurred by the Committee
in engaging such counsel, consultant or agent shall be paid by the Company.

                                       4

<PAGE>

     The Committee shall have the right, in its sole discretion, to waive the
forfeiture provisions found in Section 7 below.

     6. CASH AND STOCK BONUS. Subject to the terms, conditions and limitations
set forth in this Plan, each Year, if the Distribution Pool is a positive
number, the Participants may receive a cash and stock bonus as follows:

          6.1 CASH BONUS. Each Participant shall receive a cash bonus in an
     amount equal to the product of (i) the Participant's Bonus Percentage and
     (ii) the Distribution Pool; provided, however, that with respect to an
     Officer, the cash bonus shall not exceed two (2) times the Officer's Base
     Salary.

          6.2 STOCK BONUS. The excess of the Distribution Pool over the sum of
     the aggregate cash bonuses payable under Section 6.1 to all Participants
     (the "Adjusted Distribution Pool"), if any, shall be distributed to the
     Participants in the form of Restricted Stock or cash, as follows: Each
     Participant shall receive that number of shares of Restricted Stock having,
     at the time of issuance, a Fair Market Value equal to the product of (i)
     the Participant's Bonus Percentage and (ii) the Adjusted Distribution Pool;
     provided that, with respect to an Officer, the aggregate Fair Market Value
     of the Restricted Stock so issued shall not exceed the Officer's Base
     Salary, provided, however that the Board of Directors (or the Committee)
     may elect to pay such excess in cash.

          6.3 TERMINATION OF EMPLOYMENT. If a Participant's employment with the
     Company terminates for any reason on or before the last day of a Year, then
     such Participant shall not receive any bonus under the Plan with respect to
     such Year, except as otherwise agreed in writing between the Company and
     such Participant, in which case, the Participant shall receive a cash and
     stock bonus, if any, calculated using the applicable Participant's Adjusted
     Base Salary (solely for purposes of the numerator in determining such
     Participant's Bonus Percentage) multiplied by the percentage equivalent of
     a fraction, the denominator of which is 365 and the numerator of which is
     the number of days during the Year occurring prior to the date of the
     termination of the Participant's employment with the Company.

     7. FORFEITURE AND VESTING OF RESTRICTED STOCK. Restricted Stock issued to a
Participant shall vest and become nonforfeitable as follows: one-third (1/3) of
the Restricted Stock will vest on the first anniversary of the initial issuance
date, an additional one-third (1/3) will vest on the second anniversary of the
initial issuance date, and the balance will vest on the third anniversary of the
initial issuance date; provided however, that no less than 6 months prior to the
date upon which Restricted Stock is scheduled to vest, a Participant may, by
delivering an irrevocable election to the Company, direct that such Restricted
Stock shall vest at a later date specified by the Participant. Upon termination
of the Participant's employment for any reason other than Retirement, all shares
of Restricted Stock of the Participant which are not Vested Shares at the time
of termination of employment shall be forfeited and returned to the Company, and
the Participant shall no longer be the owner of or have any interest whatsoever
in the forfeited Restricted Stock. Notwithstanding the foregoing, including,
without limitation, a Participant's irrevocable election to defer vesting, in
the event of a Change in Control within two years following the Effective Date,
all Restricted Stock held by those Participants whose employment

                                       5

<PAGE>

has not terminated prior to the Change in Control and which are not Vested
Shares will become Vested Shares upon the Change in Control. For purposes of
this Plan, a "Change in Control" shall be deemed to have occurred if (i) any
"person" or group of "persons" (as the term "person" is used in Sections 13(d)
and 14(d) of the Exchange Act) ("Person") other than the shareholders of the
Corporation on the date of adoption of this Plan, acquires (or has acquired
during the twelve-month period ending on the date of the most recent acquisition
by such Person) direct or indirect beneficial ownership of securities of the
Company representing more than 50% of the combined voting power of the then
outstanding securities of the Company or (ii) a Person acquires (or has acquired
during the twelve-month period ending on the date of the most recent acquisition
by such Person) assets from the Company that have a total fair market value
equal to or more than one-third of the total fair market value of all of the
assets of the Company immediately prior to such acquisition. Notwithstanding the
foregoing, for purposes of clause (i), a Change in Control will not be deemed to
have occurred if the power to control (directly or indirectly) the management
and policies of the Company is not transferred from a Person to another Person;
and, for purposes of clause (ii), a Change in Control will not be deemed to
occur if the assets of the Company are transferred: (A) to a shareholder in
exchange for his stock, (B) to an entity in which the Company has (directly or
indirectly) 50% ownership, or (C) to a Person that has (directly or directly) at
least 50% ownership of the Company with respect to its stock outstanding, or to
any entity in which such Person possesses (directly or indirectly) 50%
ownership.

     The Committee, in its sole discretion, may waive the forfeiture provisions
of this Section 7 with respect to the Restricted Stock of a Participant whose
employment has terminated for reasons other than Retirement.

     8. RESTRICTION ON TRANSFER OF RESTRICTED STOCK. Restricted Stock that is
forfeitable under the terms of this Plan may not be transferred, assigned, sold,
pledged, hypothecated, or otherwise disposed of in any manner and shall not be
subject to levy, attachment, or other legal process. Notwithstanding any other
provision of the Plan, any Participant who, prior to the issuance of Restricted
Stock, has not become a party to that certain Management Stockholders Agreement
(as amended, supplemented or otherwise modified from time to time, the
"Stockholders Agreement"), among the Company and the persons named therein,
shall become a party to the Stockholders Agreement for so long as the
Stockholders Agreement remains in effect, as a condition precedent to the
issuance of such Restricted Stock. Notwithstanding any other provision of the
Plan or of the Stockholders Agreement to the contrary, any repurchase features
(e.g., puts, calls and rights of first refusal) with respect to any Restricted
Stock shall be subject to such restrictions and limitations as may be necessary
in order to prevent the Plan and any award of Restricted Stock from being
treated as "variable" for accounting purposes pursuant to Accounting Principles
Board Opinion No. 25 and all interpretations issued thereunder by the Financial
Accounting Standards Board and its Emergency Issues Task Force, and all
repurchase rights of the Company or other shareholders of the Company, as well
as all rights of a Participant with respect to repurchases of Restricted Stock,
shall remain exercisable for such period of time as may be necessary to prevent
such variable treatment.

     9. CERTIFICATES. Restricted Stock issued under this Plan shall be issued in
the name of each Participant. Stock certificates so issued shall be held by the
Company. Stock certificates shall bear such restrictive legends as the Committee
may prescribe. Each Participant shall make such representations and furnish such
information as may, in the opinion of counsel for the

                                       6
<PAGE>

Company, be appropriate to permit the Company, in the light of the then
existence or non-existence with respect to such Restricted Stock of an effective
registration statement under the Securities Act of 1933, as amended (the
"Securities Act"), to issue the Restricted Stock in compliance with the
provisions of the Securities Act or any comparable act. The Company shall have
the right, in its sole discretion, to legend any Stock which may be issued
pursuant to the Plan (whether or not vested), or may issue stop transfer orders
in respect thereof.

     Subject to all the terms, conditions, and limitations of this Plan,
including provisions concerning forfeiture and restrictions on transfer, the
Participant shall be the owner of the Restricted Stock with full dividend and
voting rights. Upon the request of a Participant, separate stock certificates
shall be issued and delivered to the Participant with respect to Vested Shares.

     10. GENERAL PROVISIONS.

          10.1 NONGUARANTY OF EMPLOYMENT. The adoption of the Plan shall not
     confer upon any Participant any right to continued employment with the
     Company nor shall it interfere in any way with the right of the Company to
     terminate its relationship with any Participant at any time.

          10.2 WITHHOLDING OF TAXES. No later than the date as of which an
     amount first becomes includible in the gross income of a Participant for
     federal income tax purposes with respect to any Restricted Stock under the
     Plan, the Participant shall pay to the Company or make arrangements
     satisfactory to the Committee regarding the payment of any federal, state
     or local taxes of any kind required by law to be withheld with respect to
     such amount. The obligations of the Company under the Plan shall be
     conditioned on such payment or arrangements and the Company, to the extent
     permitted by law, shall have the right to deduct any such taxes from any
     payment of any kind otherwise due to the Participant.

          10.3 EXPENSES. The expenses of administering the Plan shall be borne
     by the Company.

          10.4 FRACTIONAL SHARES. Fractional shares of Stock may be issued,
     provided that in lieu thereof the Committee may determine, in its sole
     discretion, whether cash shall be given in lieu of fractional shares or
     whether such fractional shares shall be eliminated by rounding up.

          10.5 GOVERNING LAW. To the extent not governed by federal law, the
     Plan shall be construed in accordance with and governed by the laws of the
     State of New York.

                            [SIGNATURE PAGE FOLLOWS]

                                       7
<PAGE>

     IN WITNESS WHEREOF, the Company has caused these presents to be executed by
its duly authorized officer as of July 16, 2003.

                                INTERNATIONAL STEEL GROUP INC.

                                BY:
                                    ------------------------------------------

                                       8

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