Document:

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                                                                     EXHIBIT 4.3

                          REGISTRATION RIGHTS AGREEMENT

                                   DATED AS OF

                                 APRIL __, 2005

                                  BY AND AMONG

                         INTERNATIONAL COAL GROUP, INC.,

                                ICG HOLDCO, INC.

                                       AND

                          THE HOLDERS IDENTIFIED HEREIN

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                                TABLE OF CONTENTS

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ARTICLE I.   DEFINITIONS AND CERTAIN INTERPRETATIVE MATTERS...................   1

      1.1    Definitions......................................................   1

ARTICLE II.  DEMAND REGISTRATION..............................................   4

      2.1    Right to Demand Registration.....................................   4

      2.2    Blackout Period..................................................   5

      2.3    Effective Demand Registrations...................................   6

      2.4    Revocation of Demand Registration................................   6

      2.5    Continuous Effectiveness of Registration Statement...............   6

      2.6    Underwritten Demand Registration.................................   7

ARTICLE III. PIGGYBACK REGISTRATION...........................................   7

      3.1    Right to Piggyback...............................................   7

      3.2    Priority on Piggyback Registrations..............................   7

      3.3    Withdrawal of Piggyback Registration.............................   8

ARTICLE IV.  PROCEDURES AND EXPENSES..........................................   9

      4.1    Registration Procedures..........................................   9

      4.2    Information from Holders.........................................  11

      4.3    Suspension of Disposition........................................  12

      4.4    Registration Expenses............................................  13

ARTICLE V.   INDEMNIFICATION..................................................  13

      5.1    Indemnification by the Company...................................  13

      5.2    Indemnification by Holders.......................................  14

      5.3    Conduct of Indemnification Proceedings...........................  14

      5.4    Contribution, etc................................................  15

ARTICLE VI.  RULE 144.........................................................  16

ARTICLE VII. PARTICIPATION IN UNDERWRITTEN OFFERINGS..........................  16

ARTICLE VIII. MISCELLANEOUS...................................................  16

      8.1    Notices..........................................................  16

      8.2    Confidentiality..................................................  17

      8.3    Assignment.......................................................  17

      8.4    No Third-Party Beneficiaries.....................................  17
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                                TABLE OF CONTENTS
                                  (continued)

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8.5    Entire Agreement.................................................  18

8.6    Amendment and Waiver.............................................  18

8.7    Counterparts.....................................................  18

8.8    Severability.....................................................  18

8.9    Governing Law....................................................  18

8.10   Specific Performance.............................................  18

8.11   Further Assurances...............................................  18

8.12   Consummation of Mergers..........................................  18
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                          REGISTRATION RIGHTS AGREEMENT

      This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of April ,
2005, is made by and among International Coal Group, Inc., a Delaware
corporation (the "Company"), ICG Holdco, Inc., a Delaware corporation ("Holdco")
and wholly-owned subsidiary of the Company and the Holders listed on the
signature pages hereto or as may be updated from time to time on Schedule A.

                                    RECITALS

      A.    In connection with the consummation of the purchase by the Company
of certain assets of Horizon Natural Resources Company and certain of its
subsidiaries, (i) WLR Coal Holdings, LLC ("WLR Holdings"), a wholly owned
subsidiary of WLR, was issued an aggregate of 10,804,172 shares (the "WLR
Shares") of the common stock ("Common Stock") of the Company and (ii) the
Investors were each issued the aggregate number of shares of Common Stock
indicated on the signature page hereof (all such shares of Common Stock, the
"Investor Shares").

      B.    As a result of the merger on December 1, 2004, of WLR Holdings with
and into the Company, the WLR Shares were transferred to WLR.

      C.    In connection with the business combination agreements with each of
Anker Coal Group, Inc. and CoalQuest Development, LLC executed on March 31,
2005, the Company agreed to merge with an indirect subsidiary of Holdco thereby
becoming an indirect subsidiary of Holdco and making Holdco the parent holding
company.

      C.    Pursuant to that certain Standby Funding Commitment (the
"Commitment") dated as of July 8, 2004 among WLR Holdings, the Company and the
Investors, the Company agreed to enter into a registration rights agreement on
the terms set forth in therein

                                   AGREEMENTS

      NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements contained herein and in the Commitment, and intending to be legally
bound hereby, the parties hereto hereby agree as follows:

           Article I. Definitions and Certain Interpretative Matters

      1.1   Definitions. For purposes of this Agreement, the following terms
have the following meanings:

            (a)   "Advice": As defined in Section 4.3.

            (b)   "Affiliate": As defined in Rule 12b-2 under the Exchange Act.

            (c)   "Agreement": As defined in the introductory paragraph hereof.

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            (d)   "Blackout Period": Any period during which, in accordance with
Section 2.2, the Company is not required to effect the filing of a Registration
Statement or is entitled to postpone the preparation, filing or effectiveness or
suspend the effectiveness of a Registration Statement.

            (e)   "Business Day": Any day, other than a Saturday or Sunday, on
which national banking institutions in New York, New York, are open.

            (f)   "Certificate of Incorporation": The Amended and Restated
Certificate of Incorporation of the Company, as amended from time to time.

            (g)   "Commitment": As defined in Recital C.

            (h)   "Common Stock": As defined in Recital A.

            (i)   "Company": As defined in the introductory paragraph hereof.

            (j)   "Exchange Act": The Securities Exchange Act of 1934, as
amended.

            (k)   "Filing Date": (i) With respect to a Registration Statement to
be filed on Form S-1 (or any applicable successor form) in connection with an
Initial Public Offering, not later than 180 days after receipt by the Company of
a request for such Registration Statement, (ii) with respect to a Registration
Statement to be filed on S-1 (or any applicable successor form) in connection
with a Public Offering other than an Initial Public Offering or on Form S-3 (or
any applicable successor form), not later than 90 days after receipt by the
Company of a request for such Registration Statement and (iii) with respect to a
Registration Statement to be filed other than on Form S-1 or Form S-3 (or any
applicable successor form), not later than 120 days after receipt by the Company
of a request for such Registration Statement.

            (l)   "Holdco": As defined in the introductory paragraph hereof.

            (m)   "Holders": WLR or one of its Affiliates or an Investor or one
of its Affiliates, in each case if such Affiliate becomes the owner of
Registrable Securities and has become a party to this Agreement.

            (n)   "Initial Public Offering": means the Company's first Public
Offering.

            (o)   "Indemnified Party": As defined in Section 5.3.

            (p)   "Indemnifying Party": As defined in Section 5.3.

            (q)   "Investor": The initial Holders other than WLR.

            (r)   "Investor Shares": As defined in Recital A.

            (s)   "Losses": As defined in Section 5.1.

            (t)   "NYSE": The New York Stock Exchange

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            (u)   "Other Holders" Any Person having rights to participate in a
registration of the Company's securities.

            (v)   "Person": Any individual, corporation, general or limited
partnership, limited liability company, joint venture, trust or other entity or
association, including without limitation any governmental authority.

            (w)   "Piggyback Notice": As defined in Section 3.1.

            (x)   "Piggyback Registration": As defined in Section 3.1.

            (y)   "Prospectus": The prospectus included in the applicable
Registration Statement, as supplemented by any and all prospectus supplements
and as amended by any and all amendments (including post-effective amendments)
and including all material incorporated by reference or deemed to be
incorporated by reference in such prospectus.

            (z)   "Public Offering": means any primary public offering of Common
Stock by the Company pursuant to an effective Registration Statement under the
Securities Act, other than pursuant to a registration statement in Form S-4 or
S-8 or any successor or similar form.

            (aa)  "Registrable Securities": (i) the WLR Shares and the Investor
Shares and (ii) any securities paid, issued or distributed in respect of any
such shares by way of stock dividend, stock split or distribution, or in
connection with a combination of shares, recapitalization, reorganization,
merger or consolidation, or otherwise; provided, however, that as to any
Registrable Securities, such securities will irrevocably cease to constitute
"Registrable Securities" upon the earliest to occur of: (A) the date on which
the securities are disposed of pursuant to an effective registration statement
under the Securities Act; (B) the date on which the securities are distributed
to the public pursuant to Rule 144 (or any successor provision) under the
Securities Act; (C) the date on which the securities may be freely sold publicly
without either registration under the Securities Act or compliance with any
restrictions, including without limitation restrictions as to volume or manner
of sales, under Rule 144(k) (or any successor provision); (D) the date on which
the securities have been transferred to any Person other than a Holder; or (E)
the date on which the securities cease to be outstanding.

            (bb)  "Registration Expenses": As defined in Section 4.4.

            (cc)  "Registration Statement": Any registration statement of the
Company under the Securities Act that covers any of the Registrable Securities
pursuant to the provisions of this Agreement, including the related Prospectus,
all amendments and supplements to such registration statement (including
post-effective amendments), and all exhibits and all materials incorporated by
reference or deemed to be incorporated by reference in such registration
statement.

            (dd)  "Required Period": With respect to a "shelf registration"
requested pursuant to Section 2.1(b), two years following the first day of
effectiveness of such Registration Statement, and with respect to any other
Registration Statement, (a) at any time following the first anniversary of the
Effective Date and on or before the fifth anniversary of the date of this
Agreement, 180 days following the first day of effectiveness of such
Registration Statement and

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(b) at any time following the fifth anniversary of the date of this Agreement,
90 days following the first day of effectiveness of such Registration Statement.

            (ee)  "Rule 144": Rule 144 promulgated under the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC.

            (ff)  "SEC": The Securities and Exchange Commission.

            (gg)  "Securities Act": The Securities Act of 1933, as amended.

            (hh)  "Underwritten Registration" or "Underwritten Offering": A
registration in which securities of the Company are sold to an underwriter for
reoffering to the public.

            (ii)  "WLR": WLR Recovery Fund II, L.P.

            (jj)  Certain Interpretative Matters. Unless the context otherwise
requires, (a) all references to Articles or Sections are to Articles or Sections
of this Agreement, (b) each term defined in this Agreement has the meaning
assigned to it, (c) all uses of "herein," "hereto," "hereof" and words similar
thereto in this Agreement refer to this Agreement in its entirety, and not
solely to the Article, Section or provision in which it appears, (d) "or" is
disjunctive but not necessarily exclusive, and (e) words in the singular include
the plural and vice versa. Unless otherwise specified, the use of the term "day"
will be deemed to be a calendar day and not a Business Day.

                        Article II. Demand Registration

      2.1   Right to Demand Registration.

            (a)   At any time and from time to time, WLR or any Investor or
group of Investors representing 20% of all Registrable Securities may request in
writing that the Company effect the registration of all or part of such Holders'
Registrable Securities with the SEC under and in accordance with the provisions
of the Securities Act (which written request will specify (i) the then current
name and address of such Holder or Holders, (ii) the aggregate number of shares
of Registrable Securities requested to be registered, (iii) the total number of
shares of Common Stock then held by such Holder or Holders, and (iv) the means
of distribution). The Company will file a Registration Statement covering such
Holder's or Holders' Registrable Securities requested to be registered as
promptly as practicable (and, in any event, by the applicable Filing Date) after
receipt of such request; provided, however, that the Company will not be
required to take any action pursuant to this Article II:

                  (A)   if such request is made by WLR and prior to the date of
            such request, the Company has effected three registrations pursuant
            to this Article II upon the request of WLR;

                  (B)   if such request is made by an Investor and prior to the
            date of such Investor's request, the Company has effected one
            registration pursuant to this Article II upon the request of such
            Investor;

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                  (C)   if such request is made by a group of Investors
            representing 20% of all Registrable Securities and prior to the date
            of such request, the Company has effected two registrations pursuant
            to this Article II upon the request of a group of Investors;

                  (D)   if the Company has effected a registration within the
            180-day period preceding such request;

                  (E)   if a Registration Statement is effective at the time
            such request is made pursuant to which the Holder or Holders that
            requested registration could effect the disposition of such Holder's
            or Holders' Registrable Securities in the manner requested;

                  (F)   in the case of an Underwritten Offering, if the
            Registrable Securities requested to be registered have an aggregate
            then-current market value of less than $75.0 million (before
            deducting underwriting discounts and commission); or

                  (G)   during the pendency of any Blackout Period.

            (b)   If a Holder or Holders request that the Company effect a
registration pursuant to this Section 2.1 and the Company is at such time
eligible to use Form S-3, the Holder or Holders making such request may specify
that the requested registration be a "shelf registration" for an offering on a
delayed or continuous basis pursuant to Rule 415 of the Securities Act.

      2.2   Blackout Period.

            (a)   Notwithstanding anything contained in Section 2.1 to the
contrary, if (i) at any time during which Holders may request a registration
pursuant to Section 2.1, the Company files or proposes to file a registration
statement with respect to an offering of equity securities of the Company for
its own account and (ii) with reasonable prior notice (A) the Company (in the
case of an offering that is not an Underwritten Offering) advises the Holders
that the Board of Directors of the Company has determined, in the good faith
exercise of its reasonable business judgment, that a sale or distribution of
Registrable Securities would adversely affect such offering or (B) the managing
underwriter, if any, advises the Company in writing (in which case the Company
will notify the Holders) that a sale or distribution of Registrable Securities
would adversely affect such offering, then the Company will not be obligated to
effect the initial filing of a Registration Statement pursuant to Section 2.1
beginning the 30 days prior to the date the Company in good faith estimates will
be the date of the filing of, and ending on the date which is 90 days following
the effective date of, such registration statement; provided that, if the
registration to be effected under this Article II is the Company's Initial
Public Offering, the Company will not be obligated to effect the initial filing
of a Registration Statement pursuant to Section 2.1 beginning the 90 days prior
to the date the Company in good faith estimates will be the date of the filing
of the Registration Statement.

            (b)   Notwithstanding anything contained in Section 2.1 to the
contrary, if the Board of Directors of the Company determines, in the good faith
exercise of its reasonable

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business judgment, that the registration and distribution of Registrable
Securities (i) would materially impede, delay or interfere with any financing,
acquisition, corporate reorganization or other significant transaction, or any
negotiations, discussions or pending proposals with respect thereto, involving
the Company or any of its subsidiaries or (ii) would require disclosure of
non-public material information, the disclosure of which would materially and
adversely affect the Company, the Company will promptly give the Holders written
notice of such determination and will be entitled to postpone the preparation,
filing or effectiveness or suspend the effectiveness of a Registration Statement
for a reasonable period of time not to exceed 90 days.

            (c)   Notwithstanding anything contained in this Section 2.2 to the
contrary, there will be no more than two Blackout Periods during any consecutive
12-month period during the time in which Holders may request a registration
pursuant to Section 2.1.

      2.3   Effective Demand Registrations.

            (a)   The Company may satisfy its obligations under Section 2.1 by
amending (to the extent permitted by applicable law) any registration statement
previously filed by the Company under the Securities Act so that such amended
registration statement will permit the disposition (in accordance with the
intended methods of disposition specified as aforesaid) of all of the
Registrable Securities for which a demand for registration has been properly
made under Section 2.1. If the Company so amends a previously filed registration
statement, it will be deemed to have effected a registration for purposes of
Section 2.1.

            (b)   Except as provided in Section 2.4, a registration requested
pursuant to Section 2.1 will not be deemed to be effected for purposes of
Section 2.1 if it has not been declared effective by the SEC or become effective
in accordance with the Securities Act and the rules and regulations thereunder
and kept effective as contemplated by Section 2.5.

      2.4   Revocation of Demand Registration. Holders of at least a majority of
the Registrable Securities to be included in a Registration Statement pursuant
to Section 2.1 may, at any time prior to the effective date of the Registration
Statement relating to such registration, revoke its or their request to have
Registrable Securities included therein by providing a written notice to the
Company. In the event such Holders of Registrable Securities revoke such
request, either (i) the Holders of Registrable Securities who revoke such
request shall reimburse the Company for all its out-of-pocket expenses incurred
in the preparation, filing and processing of the Registration Statement or (ii)
the requested registration that has been revoked will be deemed to have been
effected for purposes of Section 2.1; provided, however, that, if such
revocation was based on the Company's failure to comply in any material respect
with its obligations hereunder, such reimbursement will not be required and the
requested registration that has been revoked will not be deemed to have been
effected for purposes of Section 2.1.

      2.5   Continuous Effectiveness of Registration Statement. The Company will
use its reasonable best efforts to keep a Registration Statement that has become
effective as contemplated by this Article II continuously effective for (a) at
least the Required Period (subject to extension pursuant to Section 4.3) or (b)
such shorter period that will terminate when all Registrable Securities covered
by such Registration Statement (i) have been sold pursuant to such Registration
Statement or (ii) cease to be Registrable Securities; provided, however, that in

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no event will such period expire prior to the expiration of the applicable
period referred to in Section 4(3) of the Securities Act and Rule 174
promulgated thereunder.

      2.6   Underwritten Demand Registration. In the event that a registration
requested pursuant to Section 2.1 is to be an Underwritten Registration, the
managing underwriter of the Underwritten Offering relating thereto will be
selected, after consultation with the Company, by the Holders of at least a
majority of the Registrable Securities proposed to be included in such
Underwritten Registration. All Holders proposing to distribute their securities
through an Underwritten Offering agree to enter into an underwriting agreement
with the underwriters, provided that the underwriting agreement is in customary
form and reasonably acceptable to the Holders of a majority of the Registrable
Securities to be included in the Underwritten Offering.

                      Article III. Piggyback Registration

      3.1   Right to Piggyback. If at any time, and from time to time, the
Company proposes to file a registration statement under the Securities Act with
respect to an offering of any class of equity securities (other than a
registration statement (a) on Form S-4, Form S-8 or any successor forms thereto
or (b) filed solely in connection with an offering made solely to existing
stockholders or employees of the Company), whether or not for its own account,
then the Company will give written notice (the "Piggyback Notice") of such
proposed filing to the Holders at least 45 days before the anticipated filing
date. Such notice will offer the Holders the opportunity to register such amount
of Registrable Securities as each Holder may request on the same terms and
conditions as the registration of the Company's or Other Holders' securities, as
the case may be (a "Piggyback Registration"). The Company will include in each
Piggyback Registration all Registrable Securities for which the Company has
received written requests for inclusion within 15 days after delivery of the
Piggyback Notice, subject to Section 3.2.

      3.2   Priority on Piggyback Registrations. If the Piggyback Registration
is an Underwritten Offering, the Company will cause the managing underwriter of
that proposed offering to permit the Holders that have requested Registrable
Securities to be included in the Piggyback Registration to include all such
Registrable Securities on the same terms and conditions as any similar
securities, if any, of the Company. Notwithstanding the foregoing, if the
managing underwriter or underwriters of such Underwritten Offering advises the
Company and the selling Holders that, in its good faith determination, the total
amount of securities that the Company, such Holders and any Other Holders
propose to include in such offering is such as to materially and adversely
affect the success of such Underwritten Offering, then:

            (a)   if such Piggyback Registration is a primary registration by
the Company for its own account, the Company will include in such Piggyback
Registration: (i) first, all securities to be offered by the Company; (ii)
second, up to the full amount of securities requested to be included in such
Piggyback Registration by the Holders and any Other Holders having registration
rights on a pari passu basis, allocated pro rata among such holders, on the
basis of the amount of securities requested to be included therein by each such
holder; and (iii) third, up to the full amount of securities requested to be
included in such Piggyback Registration by any Other Holders in accordance with
the priorities, if any, then existing among the Company and the Other Holders so
that the total amount of securities to be included in such Underwritten

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Offering is the full amount that, in the opinion of such managing underwriter,
can be sold without materially and adversely affecting the success of such
Underwritten Offering; and

            (b)   if such Piggyback Registration is an underwritten secondary
registration for the account of holders of securities of the Company, the
Company will include in such registration: (i) first, all securities of the
Persons exercising "demand" registration rights requested to be included
therein; (ii) second, up to the full amount securities proposed to be included
in the registration by the Company, (iii) third, up to the full amount of
securities requested to be included in such Piggyback Registration by the
Holders and any Other Holders having registration rights on a pari passu basis,
allocated pro rata among such holders, on the basis of the amount of securities
requested to be included therein by each such holder; and (iv) fourth, up to the
full amount of securities requested to be included in such Piggyback
Registration by the Other Holders in accordance with the priorities, if any,
then existing among the Company and the Other Holders so that the total amount
of securities to be included in such Underwritten Offering is the full amount
that, in the written opinion of such managing underwriter, can be sold without
materially and adversely affecting the success of such Underwritten Offering.

            (c)   If so requested (pursuant to a timely written notice) by the
managing underwriter in any Underwritten Offering the Holders participating in
such Underwritten Offering will agree not to effect any public sale or
distribution (or any other type of sale as the managing underwriter reasonably
determines is necessary in order to effect the Underwritten Offering) of any
such Registrable Securities, including a sale pursuant to Rule 144 (but
excluding any Registrable Securities included in such Underwritten Offering),
during the 10 days prior to, and during the 90 days (or such additional period
as the managing underwriter reasonably determines is necessary in order to
effect the Underwritten Offering) following, the closing date of such
Underwritten Offering. In the event of such a request, the Company may impose,
during such period, appropriate stop-transfer instructions with respect to the
Registrable Securities subject to such restrictions.

      3.3   Withdrawal of Piggyback Registration.

            (a)   If at any time after giving the Piggyback Notice and prior to
the effective date of the Registration Statement filed in connection with the
Piggyback Registration, the Company determines for any reason not to register or
to delay the Piggyback Registration, the Company may, at its election, give
written notice of its determination to all Holders, and (i) in the case of a
determination not to register, will be relieved of its obligation to register
any Registrable Securities in connection with the abandoned Piggyback
Registration, without prejudice, and (ii) in the case of a determination to
delay the Piggyback Registration, will be permitted to delay the registration
for a period not exceeding 180 days.

            (b)   Any Holder of Registrable Securities requesting to be included
in a Piggyback Registration may withdraw its request for inclusion by giving
written notice to the Company of its intention to withdraw from that
registration, provided, however, (i) the Holder's request must be made in
writing, in the case of an Underwritten Registration, at least five Business
Days prior to the anticipated effective date of the Registration Statement, or
if the registration is not an Underwritten Registration, at least five Business
Days prior to the

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anticipated filing date of the Registration Statement covering the Piggyback
Registration, and (ii) the withdrawal will be irrevocable and, after making the
withdrawal, a Holder will no longer have any right to include its Registrable
Securities in that Piggyback Registration.

            (c)   The Company shall be deemed to have satisfied its obligations
with respect to any Piggyback Registration to any Holder under this Article III
notwithstanding an election to withdraw under this Section 3.3.

                      Article IV. Procedures and Expenses

      4.1   Registration Procedures. In connection with the Company's
registration obligations pursuant to Articles II and III, the Company will
effect such registrations to permit the sale of Registrable Securities by a
Holder in accordance with the intended method or methods of disposition thereof,
and pursuant thereto the Company will as promptly as reasonably practicable:

            (a)   subject to Section 2.1, prepare and file with the SEC a
Registration Statement on an appropriate form under the Securities Act available
for the sale of the Registrable Securities by the selling Holders in accordance
with the intended method or methods of distribution thereof; provided, however,
that the Company will, before filing, furnish to each selling Holder and the
managing underwriter, if any, copies of the Registration Statement or Prospectus
proposed to be filed;

            (b)   subject to Section 2.5, prepare and file with the SEC any
amendments and post-effective amendments to the Registration Statement as may be
necessary and any supplements to the Prospectus as may be required, in the
opinion of the Company and its counsel, by the rules, regulations or
instructions applicable to the registration form used by the Company or by the
Securities Act or rules and regulations thereunder to keep the Registration
Statement effective until the earlier of (i) all Registrable Securities covered
by the Registration Statement are sold in accordance with the intended plan of
distribution set forth in the Registration Statement or supplement to the
Prospectus or (ii) the termination of the Required Period;

            (c)   promptly following its actual knowledge thereof, notify the
selling Holders and the managing underwriter, if any,

                  (i)   when a Prospectus or any Prospectus supplement or
      amendment has been filed and, with respect to a Registration Statement or
      any post-effective amendment, when the Registration Statement has become
      effective,

                  (ii)  of any request by the SEC or any other governmental
      authority for amendments or supplements to a Registration Statement or
      related Prospectus or for additional information,

                  (iii) of the issuance by the SEC or any other governmental
      authority of any stop order suspending the effectiveness of a Registration
      Statement or the initiation of any proceedings for that purpose,

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                  (iv)  of the receipt by the Company of any written
      notification with respect to the suspension of the qualification or
      exemption from qualification of any of the Registrable Securities for sale
      in any jurisdiction or the initiation or threatening of any proceeding for
      such purpose,

                  (v)   of the occurrence of any event which makes any statement
      made in the Registration Statement or Prospectus untrue in any material
      respect or which requires the making of any changes in a Registration
      Statement or Prospectus or other documents so that it will not contain any
      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
      not misleading, and

                  (vi)  of the Company's reasonable determination that a
      post-effective amendment to a Registration Statement would be appropriate;

            (d)   use its reasonable best efforts to obtain the withdrawal of
any order suspending the effectiveness of a Registration Statement, or the
lifting of any suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, at the
earliest practicable date;

            (e)   furnish to each selling Holder and the managing underwriter,
if any, at least one conformed copy of the Registration Statement and any
post-effective amendment thereto, including financial statements (but excluding
all schedules, all documents incorporated or deemed incorporated therein by
reference and all exhibits);

            (f)   prior to any public offering of Registrable Securities,
register or qualify or cooperate with the selling Holders, the managing
underwriter, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or blue sky laws of such jurisdictions within the United States as
the selling Holders or the managing underwriter reasonably request in writing
and maintain each registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept
effective; provided, however, the Company will not be required to qualify
generally to do business in any jurisdiction in which it is not then so
qualified or take any action which would subject it to general service of
process or taxation in any jurisdiction in which it is not then so subject;

            (g)   as promptly as practicable upon the occurrence of any event
contemplated by Section 4.1(c)(v) or 4.1(c)(vi) hereof, prepare a supplement or
post-effective amendment to each Registration Statement or a supplement to the
related Prospectus, or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities being sold thereunder,
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 not misleading;

            (h)   in the case of an Underwritten Offering, enter into customary
and reasonable agreements (including an underwriting agreement) and take all
other actions

                                       10
<PAGE>

reasonably necessary or desirable to expedite or facilitate the disposition of
the Registrable Securities, and in connection therewith:

                  (i)   use its reasonable best efforts to obtain opinions of
      counsel to the Company and updates thereof (which counsel and opinions (in
      form, scope and substance) are reasonably satisfactory to the managing
      underwriter, if any, and each selling Holder addressed to each selling
      Holder and the managing underwriter covering the matters customarily
      covered in opinions requested in Underwritten Offerings and such other
      matters as may be reasonably requested by any selling Holder or any
      underwriter, and

                  (ii)  use its reasonable best efforts to obtain "comfort"
      letters and updates thereof from the independent certified public
      accountants of the Company addressed to the each selling Holder and the
      managing underwriter covering the matters customarily covered in "comfort"
      letters in connection with Underwritten Offerings;

            (i)   upon reasonable notice and at reasonable times during normal
business hours, make available for inspection by a representative of each
selling Holder and any underwriter participating in any disposition of
Registrable Securities and any attorney or accountant retained by any selling
Holder or any underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the officers, directors and
employees of the Company to supply all information reasonably requested by any
such representative, underwriter, attorney or accountant in connection with the
Registration Statement; and

            (j)   use its reasonable best efforts to comply with all applicable
rules and regulations of the SEC relating to such registration and make
generally available to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act, provided that the Company
will be deemed to have complied with this Section 4(j) if it has satisfied the
provisions of Rule 158 under the Securities Act (or any similar rule promulgated
under the Securities Act).

      4.2   Information from Holders.

            (a)   The Company may require each selling Holder that has requested
inclusion of its Registrable Securities in any Registration Statement to furnish
to the Company such information regarding such Holder and its plan and method of
distribution of such Registrable Securities as the Company may, from time to
time, reasonably request in writing. The Company may refuse to proceed with the
registration of such Holder's Registrable Securities if such Holder unreasonably
fails to furnish such information within a reasonable time after receiving such
request.

            (b)   Each selling Holder will as expeditiously as possible (i)
notify the Company of the occurrence of any event that makes any statement made
in a Registration Statement or Prospectus regarding such selling Holder untrue
in any material respect or that requires the making of any changes in a
Registration Statement or Prospectus so that, in such regard, it will not
contain any untrue statement of a material fact or omit any material fact

                                       11
<PAGE>

required to be stated therein or necessary to make the statements not misleading
and (ii) provide the Company with such information as may be required to enable
the Company to prepare a supplement or post-effective amendment to any such
Registration Statement or a supplement to such Prospectus.

            (c)   With respect to any Registration Statement for an Underwritten
Offering, the inclusion of a Holder's Registrable Securities therein will be
conditioned upon such Holder's participation in such Underwritten Offering and
the execution and delivery by such Holder of an underwriting agreement in form,
scope and substance as is customary in Underwritten Offerings.

      4.3   Suspension of Disposition.

            (a)   Each selling Holder will be deemed to have agreed that, upon
receipt of any notice from the Company of the occurrence of any event of the
kind described in Section 4.1(c)(ii), 4.1(c)(iii), 4.1(c)(iv), 4.1(c)(v) or
4.1(c)(vi), such Holder will discontinue disposition of Registrable Securities
covered by a Registration Statement or Prospectus until such Holder's receipt of
the copies of the supplemented or amended Prospectus contemplated by Section
4.1(g) or until it is advised in writing (the "Advice") by the Company that the
use of the applicable Prospectus may be resumed and have received copies of any
additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus. In the event the Company shall
give any such notice, the period of time for which a Registration Statement must
remain effective as set forth in Section 2.5 will be extended by the number of
days during the time period from and including the date of the giving of such
notice to and including the date when each seller of Registrable Securities
covered by such Registration Statement has received (i) the copies of the
supplemented or amended Prospectus contemplated by Section 4.1(g) or (ii) the
Advice.

            (b)   Each selling Holder will be deemed to have agreed that, upon
receipt of any notice from the Company of the happening of an event specified in
Section 2.2(b), disclosure of which would be required in the Registration
Statement and the Board of Directors of the Company has determined in the good
faith exercise of its reasonable business judgment that disclosure would
adversely affect the Company, such selling Holder will discontinue disposition
of Registrable Securities covered by a Registration Statement or Prospectus
until the earlier to occur of the Holder receives (i) copies of a supplemented
or amended Prospectus describing the event giving rise to the aforementioned
suspension or (ii) (A) notice in writing from the Company that the use of the
applicable Prospectus may be resumed and (B) copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus; provided, however, that the periods during which
the offer and sale of Registrable Securities is discontinued shall not exceed
two 90-day periods during any 12-month period. In the event the Company gives
any such notice, the period of time for which a Registration Statement must
remain effective as set forth in Section 2.1 will be extended by the number of
days during the time period from and including the date of giving of such notice
to and including the date when each seller of Registrable Securities covered by
such Registration Statement receives (i) a supplemented or amended Prospectus
describing the event giving rise to the aforementioned suspension or (ii) notice
from the Company that use of the applicable Prospectus may resume.

                                       12
<PAGE>

      4.4   Registration Expenses.

            (a)   Subject to Section 2.4, all fees and expenses incurred by the
Company in complying with Articles II, III and Section 4.1 ("Registration
Expenses") will be borne by the Company. These fees and expenses will include
without limitation (i) all registration and filing fees (including without
limitation fees and expenses (x) with respect to filings required to be made
with the National Association of Securities Dealers, Inc. and (y) of compliance
with securities or blue sky laws (including without limitation reasonable fees
and disbursements of counsel for the underwriters and selling Holders in
connection with blue sky qualifications of the Registrable Securities and
determination of the eligibility of the Registrable Securities for investment
under the laws of such jurisdictions as the managing underwriter or
underwriters, if any, or the selling Holders may designate)), (ii) printing
expenses (including without limitation the expenses of printing certificates for
securities in a form eligible for deposit with The Depository Trust Company and
of printing Prospectuses if the printing of Prospectuses is requested by the
selling Holders), (iii) fees and disbursements of counsel for the Company, (iv)
reasonable fees and disbursements (not to exceed $50,000) of one counsel for all
selling Holders collectively (which counsel will be selected by the Holders
holding a majority of the securities sought to be included in the Registration
Statement), (v) fees and disbursements of all independent certified public
accountants referred to in Section 4.1(h)(iii) (including the expenses of any
special audit and "comfort" letters required by or incident to such performance)
and (vi) fees and expenses of all other Persons retained by the Company. In
addition, the Company will pay its internal expenses (including without
limitation all salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit, and the fees and
expenses incurred in connection with the listing of the securities to be
registered on each securities exchange, if any, on which similar securities
issued by the Company are then listed or the quotation of such securities on
NYSE if similar securities issued by the Company are then quoted on NYSE.

            (b)   Notwithstanding anything contained herein to the contrary, (i)
all costs and fees of counsel (except as specifically set forth in Section
4.4(a)) and experts retained by the selling Holders and (ii) all underwriting
fees, discounts, selling commissions and stock transfer taxes applicable to the
sale of Registrable Securities will be borne by the Holder owning such
Registrable Securities.

            (c)   Notwithstanding anything contained herein to the contrary,
each selling Holder may have its own separate counsel in connection with the
registration of any of its Registrable Securities, which counsel may participate
therein to the full extent provided herein; provided, however, that all fees and
expenses of such separate counsel will be paid for by such selling Holder.

                           Article V. Indemnification

      5.1   Indemnification by the Company. The Company will indemnify and hold
harmless, to the fullest extent permitted by law, each Holder owning Registrable
Securities registered pursuant to this Agreement, its officers, directors,
agents and employees, each Person who controls such Holder (within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, owners, agents and employees of any such

                                       13
<PAGE>

controlling Person, from and against all losses, claims, damages, liabilities,
costs (including without limitation reasonable attorneys' fees and
disbursements) and expenses (collectively, "Losses") arising out of or based
upon any untrue or alleged untrue statement of a material fact contained or
incorporated by reference in any Registration Statement, Prospectus or
preliminary prospectus, or arising out of or based upon 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 the
same are based solely upon information furnished in writing to the Company by or
on behalf of such Holder expressly for use therein; provided, however, that the
Company will not be liable to any Holder to the extent that any Losses arise out
of or are based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in any preliminary prospectus if either (i) (A) such
Holder failed to send or deliver a copy of the Prospectus with or prior to the
delivery of written confirmation of the sale by such Holder of a Registrable
Security to the Person asserting the claim from which such Losses arise and (B)
the Prospectus would have corrected such untrue statement or alleged untrue
statement or such omission or alleged omission or (ii) the untrue statement or
alleged untrue statement or omission or alleged omission is corrected in an
amendment or supplement to the Prospectus previously furnished by or on behalf
of the Company, if the Holder was furnished with copies of the Prospectus as so
amended or supplemented and the Holder thereafter failed to deliver such
Prospectus as so amended or supplemented prior to or concurrently with the sale
of a Registrable Security to the Person asserting the claim from which such
Losses arise.

      5.2   Indemnification by Holders. Each Holder (severally and not jointly)
will indemnify and hold harmless, to the fullest extent permitted by law, the
Company, its officers, directors, agents and employees, each Person who controls
the Company (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act), and the directors, officers, owners, agents and
employees of any such controlling Person, from and against all Losses, as
incurred, arising out of or based upon any untrue or alleged untrue statement of
a material fact contained or incorporated by reference in any Registration
Statement, Prospectus or preliminary prospectus, or arising out of or based upon
any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading, to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with information so furnished in writing by or on behalf of such
Holder to the Company expressly for use in such Registration Statement,
Prospectus or preliminary prospectus. In no event will the liability of any
Holder be greater in amount than the dollar amount of the net proceeds received
by such Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

      5.3   Conduct of Indemnification Proceedings. If any Person becomes
entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party
will give prompt notice to the party from which indemnity is sought (the
"Indemnifying Party") of any claim or of the commencement of any action or
proceeding with respect to which the Indemnified Party seeks indemnification or
contribution pursuant hereto; provided, however, that the failure to so notify
the Indemnifying Party will not relieve the Indemnifying Party from any
obligation or liability except to the extent that the Indemnifying Party has
been prejudiced materially by such failure. If such an action or proceeding is
brought against the Indemnified Party, the Indemnifying Party will be entitled
to participate therein and, to the extent it may elect by written notice
delivered to the Indemnified Party promptly after receiving the notice referred
to in the immediately

                                       14
<PAGE>

preceding sentence, to assume the defense thereof with counsel reasonably
satisfactory to the Indemnified Party. Notwithstanding the foregoing, the
Indemnified Party will have the right to employ its own counsel in any such
case, but the fees and expenses of that counsel will be at the expense of the
Indemnified Party unless (i) the employment of the counsel has been authorized
in writing by the Indemnifying Party, (ii) the Indemnifying Party has not
employed counsel (reasonably satisfactory to the Indemnified Party) to take
charge of such action or proceeding within a reasonable time after notice of
commencement thereof, or (iii) the Indemnified Party reasonably concludes, based
upon the opinion of counsel, that there may be defenses or actions available to
it which are different from or in addition to those available to the
Indemnifying Party which, if the Indemnifying Party and the Indemnified Party
were to be represented by the same counsel, could result in a conflict of
interest for such counsel or materially prejudice the prosecution of defenses or
actions available to the Indemnified Party. If any of the events specified in
clause (i), (ii) or (iii) of the immediately preceding sentence are applicable,
then the reasonable fees and expenses of separate counsel for the Indemnified
Party will be borne by the Indemnifying Party; provided, however, that in no
event will the Indemnifying Party be liable for the fees and expenses of more
than one separate firm for all Indemnified Parties. If, in any case, the
Indemnified Party employs separate counsel, the Indemnifying Party will not have
the right to direct the defense of the action or proceeding on behalf of the
Indemnified Party. All fees and expenses required to be paid to the Indemnified
Party pursuant to this Article V will be paid periodically during the course of
the investigation or defense, as and when reasonably itemized bills therefor are
delivered to the Indemnifying Party in respect of any particular Loss that is
incurred. Notwithstanding anything contained in this Section 5.3 to the
contrary, an Indemnifying Party will not be liable for the settlement of any
action or proceeding effected without its prior written consent. The
Indemnifying Party will not, without the consent of the Indemnified Party (which
consent will not be unreasonably withheld), consent to entry of any judgment or
enter into any settlement or otherwise seek to terminate any action or
proceeding in which any Indemnified Party is or could be a party and as to which
indemnification or contribution could be sought by such Indemnified Party under
this Article V, unless such judgment, settlement or other termination provides
solely for the payment of money and includes as an unconditional term thereof
the giving by the claimant or plaintiff to such Indemnified Party of a release,
in form and substance reasonably satisfactory to the Indemnified Party, from all
liability in respect of such claim or litigation for which such Indemnified
Party would be entitled to indemnification hereunder.

      5.4   Contribution, etc.

            (a)   If the indemnification provided for in this Article V is
unavailable to an Indemnified Party under Section 5.1 or 5.2 in respect of any
Losses or is insufficient to hold the Indemnified Party harmless, then each
applicable Indemnifying Party (severally and not jointly), in lieu of
indemnifying the Indemnified Party, will contribute to the amount paid or
payable by the Indemnified Party as a result of the Losses, in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party or
Indemnifying Parties, on the one hand, and the Indemnified Party, on the other
hand, in connection with the actions, statements or omissions that resulted in
the Losses as well as any other relevant equitable considerations. The relative
fault of the Indemnifying Party or Indemnifying Parties, on the one hand, and
the Indemnified Party, on the other hand, will be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission

                                       15
<PAGE>

or alleged omission of a material fact, has been taken or made by, or related to
information supplied by, the Indemnifying Party or Indemnifying Parties or the
Indemnified Party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action, statement or
omission. The amount paid or payable by a party as a result of any Losses will
be deemed to include any legal or other fees or expenses incurred by such party
in connection with any action or proceeding.

            (b)   The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 5.4 were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding anything contained in this Section 5.4 to the
contrary, an Indemnifying Party that is a selling Holder will not be required to
contribute any amount in excess of the amount by which the total price at which
the Registrable Securities were sold by the selling Holder to the public exceeds
the amount of any damages which such selling Holder has, in the aggregate,
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. 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.

                              Article VI. Rule 144

      Upon consummation of a Public Offering, the Company will file all reports
required to be filed by it under the Securities Act and the Exchange Act and
will cooperate with any Holder to the extent required from time to time to
enable such Holder to sell its Registrable Securities without registration under
the Securities Act within the limitations of the exemptions provided by Rule 144
(or any successor provision). Upon the request of any Holder, the Company will
deliver to such Holder a written statement as to whether it has complied with
such filing requirements. Notwithstanding the foregoing, nothing in this Article
VI will require the Company to register any securities, or file any reports,
under the Exchange Act if such registration or filing is not required under the
Exchange Act.

              Article VII. Participation in Underwritten Offerings

      Notwithstanding anything contained herein to the contrary, no Person may
participate in any Underwritten Offering pursuant to a registration hereunder
unless that Person (a) agrees to sell its securities on the basis provided in
any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements and (b) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

                          Article VIII. Miscellaneous

      8.1   Notices. All notices, requests, claims, demands and other
communications hereunder will be in writing and will be given or made by
delivery in person, by overnight courier, by facsimile transmission, by
electronic transmission or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties at the following addresses
(or at such other address for a party specified in a notice given in accordance
with this Section 8.1):

                                       16
<PAGE>

            (a)   If to the Company:

                  International Coal Group, Inc.
                  2000 Ashland Drive
                  Ashland, Kentucky 41101
                  Facsimile: 606-920-7820
                  Attention: Chief Financial Officer

                  with a copy to:

                  Jones Day
                  222 E. 41st Street
                  New York, New York  10017
                  Facsimile: 212-755-7306
                  Attention: Randi L. Strudler

            (b)   If to a Holder, to such Holder's address on file with the
Company's transfer agent.

All such notices and communications will be deemed to have been delivered or
given upon receipt, if delivered personally, by electronic transmission or by
overnight courier; when receipt is acknowledged, if sent by facsimile
transmission and three Business Days after being deposited in the mail, if
mailed.

      8.2   Confidentiality. Each Holder will, and will cause its officers,
directors, employees, legal counsel, accountants, financial advisors and other
representatives to, hold in confidence any material nonpublic information
received by them pursuant to this Agreement, including without limitation any
material nonpublic information included in any Registration Statement or
Prospectus proposed to be filed with the SEC or provided pursuant to Section
4.1(i). This Section 8.2 shall not apply to any information which (a) is or
becomes generally available to the public, (b) was already in the Holder's
possession from a non-confidential source prior to its disclosure by the
Company, or (c) is or becomes available to the Holder on a non-confidential
basis from a source other than the Company, provided that such source is not
known by the Holder to be bound by confidentiality obligations.

      8.3   Assignment. None of the parties to this Agreement may assign or
delegate any of its rights or obligations under this Agreement without the prior
written consent of each of the other parties hereto. Notwithstanding the
foregoing, any Affiliate of a Holder that becomes a record owner of WLR Shares
or Investor Shares, as the case may be, shall become a Holder hereunder upon its
delivery to the Company of its executed joinder hereto.

      8.4   No Third-Party Beneficiaries. Except as expressly set forth herein,
this Agreement will be binding upon and inure solely to the benefit of the
parties hereto and their respective successors and permitted assigns and nothing
herein, express or implied, is intended to or will confer upon any other Person
any legal or equitable right, benefit or remedy of any nature whatsoever under
or by reason of this Agreement.

                                       17
<PAGE>

      8.5   Entire Agreement. This Agreement constitutes the entire agreement of
the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and undertakings, both written and oral, among the parties with
respect to the subject matter hereof.

      8.6   Amendment and Waiver. This Agreement may not be amended or modified
or any provision hereof waived except by an instrument in writing signed by all
of the parties to this Agreement.

      8.7   Counterparts. This Agreement may be executed by facsimile signature
and in any number of counterparts, each such counterpart to be deemed an
original and all such counterparts, taken together, to constitute one
instrument.

      8.8   Severability. If any term or other provision of this Agreement is
invalid, illegal or unenforceable under any law or public policy, all other
terms and provisions of this Agreement will nevertheless remain in full force
and effect. Upon a determination that any term or other provision is invalid,
illegal or unenforceable, the parties hereto will endeavor in good faith to
replace the invalid, illegal or unenforceable provisions with valid, legal and
enforceable provisions the effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

      8.9   Governing Law. This Agreement will be governed by, and construed in
accordance with, the laws of the State of New York, without giving effect to the
principles of conflict of laws thereof.

      8.10  Specific Performance. The parties hereto agree that irreparable
damage would occur in the event any provision of this Agreement was not
performed in accordance with the terms hereof and that the parties will be
entitled to specify performance of the terms hereof, in addition to any other
remedy at law or equity.

      8.11  Further Assurances. The parties hereto will do such further acts and
things necessary to ensure that the terms of this Agreement are carried out and
observed.

      8.12  Consummation of Mergers. Upon the consummation of the mergers as
contemplated by the business combination agreements, the provisions hereof will
apply to Holdco, mutatis mutandis, as they originally applied to the Company and
all references to "Common Stock" herein shall thereinafter refer to the Common
Stock of Holdco, par value $0.01 per share, issued to the Holders in the
mergers.

                                       18
<PAGE>

      IN WITNESS WHEREOF, each of the parties has executed this Agreement as of
the date first written above.

                                        INTERNATIONAL COAL GROUP, INC.

                                        By: /s/ William D. Campbell
                                           ------------------------------------
                                           Name: William D. Campbell
                                           Title: Vice President, Treasurer
                                                  and Secretary

                                        ICG HOLDCO, INC.

                                        By: /s/ William D. Campbell
                                           ------------------------------------
                                           Name: William D. Campbell
                                           Title: Vice President, Treasurer
                                                  and Secretary

                                        HOLDERS:

                                        WLR RECOVERY FUND II, L.P.

                                        By: /s/ Wilbur L. Ross
                                           ------------------------------------
                                           Name: Wilbur L. Ross
                                           Title:
                                           Shares: 10,804,172

                                        CONTRARIAN CAPITAL MANAGEMENT LLC

                                        By: /s/ John Bauer
                                           -----------------------------------
                                           Name: John Bauer
                                           Title:
                                           Shares: 15,402,865

<PAGE>

                                        GREENLIGHT CAPITAL QUALIFIED, LP
                                        By: Greenlight Capital, LLC, its
                                            general partner

                                        By: /s/ Daniel Roitman
                                           -----------------------------------
                                           Name: Daniel Roitman
                                           Title: COO
                                           Shares: 4,768,361

                                        STARK TRADING

                                        By: /s/ Colin M. Lancaster
                                           -----------------------------------
                                           Name: Colin M. Lancaster
                                           Title: General Counsel
                                           Shares: 7,670,350

                                        SHEPERD INTERNATIONAL COAL
                                        HOLDINGS INC.

                                        By: /s/ Colin M. Lancaster
                                           -----------------------------------
                                           Name: Colin M. Lancaster
                                           Title: General Counsel
                                           Shares: 7,670,349

<PAGE>

                                VARDE COAL INC.

                                By: /s/ Marcia L. Page
                                   ---------------------------------------------
                                Name: Marcia L. Page
                                Title: Vice President
                                15,708,755 Aggregate Shares Issued
                                9,273,755 Shares of Record on 5/13/05
                                8,573,755 Shares not under agreement to transfer

<PAGE>

                                   Schedule A<PAGE>

                                                                    EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into this 25th day of
April, 2005 (the "Effective Date"), by and between Roger L. Nicholson
("Executive") and International Coal Group, Inc. (the "Company"), a Delaware
corporation.

                                R E C I T A L S:

      A. ICG desires to employ Executive, and Executive desires to be employed
by ICG, under the terms and conditions of this Agreement.

      B. The Board of Directors has also determined that it is in the best
interests of the stockholders and ICG to promote stability among key officers.

      IN CONSIDERATION OF THE FOREGOING, the mutual covenants contained herein,
and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as follows:

1.    DEFINITIONS.

      1.1 "ACCOUNTANTS" has the meaning set forth in Section 10.7(B)(i).

      1.2 "ANNUAL BONUS" has the meaning set forth in Section 5.2.

      1.3 "APPLICANT VIOLATOR SYSTEM" has the meaning set forth in Section 12.4.

      1.4 "BASE SALARY" has the meaning set forth in Section 5.1.

      1.5 "BOARD" or "BOARD OF DIRECTORS" means the board of directors of the
Company.

      1.6 "CAUSE" means (A) the commission by Executive of (i) a felony or (ii)
any serious crime involving fraud, dishonesty or breach of trust; (B) gross
negligence or intentional misconduct by Executive with respect to ICG or in the
performance of his duties to ICG; (C) failure to follow a reasonable, lawful and
specific direction of the Board of Directors; (D) failure by Executive to
cooperate in any corporate investigation; or (E) breach by Executive of any
material provision of this Agreement, which breach is not corrected by Executive
within ten (10) calendar days after receipt by Executive of written notice from
ICG of such breach. For purposes of this definition, no act or failure to act by
the Executive shall be considered "intentional" unless done or omitted to be
done by the Executive in bad faith and without reasonable belief that the
Executive's action or omission was in the best interests of ICG.

      1.7 "CHANGE IN CONTROL" means that (A) WL Ross & Co. LLC's percentage of
Company Stock held (9.2% on the Effective Date) is reduced by 50% or more solely
as a result of a sale by WL Ross & Co. LLC of Company Stock, or (B) a person or
entity acquires 40% or more of Company Stock after which the individuals who
constitute the Board immediately prior to such acquisition cease for any reason
to constitute at least a majority thereof.

      1.8 "CODE" has the meaning set forth in Section 5.3(B).

                                      -1-
<PAGE>

      1.9 "COMPANY STOCK" has the meaning set forth in Section 5.3(A)(i).

      1.10 "COVERED PAYMENTS" has the meaning set forth in Section 10.7(A).

      1.11 "DISABILITY" or "DISABLED" means the absence of Executive from
Executive's duties with the Company on a full time basis for 180 consecutive
business days as a result of incapacity due to mental or physical illness that
is determined to be total and permanent by a physician selected by the Company
or its insurers and reasonably acceptable to Executive or Executive's legal
representative.

      1.12 "EBITDA" has the meaning set forth in Section 5.2.

      1.13 "EXCISE TAX" has the meaning set forth in Section 10.7(A).

      1.14 "EXCISE TAX REIMBURSEMENT" has the meaning set forth in Section
10.7(A).

      1.15 "GOOD REASON" means the termination of Executive's employment by
Executive pursuant to Section 9.2, such written notice being given within thirty
(30) days of the occurrence of any of the following events:

            (A) involuntary reduction in Executive's Base Salary unless with
      Executive's consent such reduction occurs simultaneously with a reduction
      in officers' salaries generally applicable on a company-wide basis;

            (B) involuntary discontinuance or reduction in Executive's Annual
      Bonus award opportunities unless with Executive's consent such
      discontinuance or reduction occurs simultaneously with a generally
      applicable company-wide reduction or elimination of all officers' bonus
      awards occurs simultaneously with such discontinuance or reduction;

            (C) involuntary discontinuance of Executive's participation in any
      employee benefit plan or plans maintained by ICG unless such plan(s) are
      discontinued by reason of law or loss of tax deductibility to ICG with
      respect to contributions to such plan(s), or with Executive's consent such
      discontinuance occurs as a matter of ICG policy applied equally to all
      participants in such plan(s) that are in the same classification of
      employees as Executive;

            (D) failure to obtain an assumption of ICG's obligations under this
      Agreement by any successor to ICG, regardless of whether such entity
      becomes a successor to ICG as a result of a merger, consolidation, sale of
      assets of ICG, or other form of reorganization, except when the rights and
      obligations of ICG under this Agreement are vested in the successor to ICG
      by operation of law;

            (E) failure of there to be an Initial Public Offering within
      twenty-four (24) months of the Effective Date;

            (F) a Change in Control;

                                      -2-
<PAGE>

            (G) involuntary relocation of Executive's primary office to a
      location more than fifty (50) miles from the location determined by the
      Company as set forth in Section 8.6 of this Agreement; and

            (H) material reduction of Executive's duties and authority as set
      forth in Section 3 of this Agreement as in effect on the Effective Date.

      1.16 "GUIDANCE" has the meaning set forth in Section 14.3.

      1.17 "ICG" or "COMPANY" means International Coal Group, Inc. and each of
the affiliates of International Coal Group, Inc. (meaning any entity that
directly, or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, International Coal Group, Inc.),
along with all successors and assigns of each of such entities.

      1.18 "INITIAL PUBLIC OFFERING" or "IPO" means an initial offering of
common stock of ICG that is completed by the sale of such shares pursuant to
ICG's first effective registration statement for the sale of shares filed under
the Securities Act of 1933, as amended.

      1.19 "IRS" means the Internal Revenue Service.

      1.20 "PLAN" means the International Coal Group, Inc. 2005 Management
Equity Incentive Compensation Plan or if such plan has not been adopted as of
the Effective Date, such plan as subsequently adopted which shall contemplate
the equity grants set forth in Section 5.3.

      1.21 "PROTECTED EMPLOYEE" has the meaning set forth in Section 11.2.

      1.22 "TARGETED ANNUAL BONUS" has the meaning set forth in Section 5.2.

      1.23 "TERM" has the meaning set forth in Section 4.

      1.24 "TERMINATION DATE" means the date on which the termination of
Executive's employment with ICG becomes effective.

2.    EMPLOYMENT.

      ICG hereby employs Executive, and Executive hereby accepts employment,
according to the terms and conditions set forth in this Agreement and for the
period specified in Section 4 of this Agreement.

3.    DUTIES.

            (A) During the Term, Executive shall serve as Senior Vice President
      and General Counsel of the Company, and agrees to serve as an officer,
      director and/or employee of such affiliates of ICG in accordance with
      reasonable and lawful directions from ICG's Board of Directors and
      President and Chief Executive Officer ("CEO") and in accordance with ICG's
      Articles of Incorporation and Bylaws, as both may be amended from time to
      time. Executive will report directly to the CEO.

                                      -3-
<PAGE>

            (B) While Executive is employed by ICG as a full-time employee,
      Executive shall serve ICG, faithfully, diligently, competently and to the
      best of his ability, and will exclusively devote his full time, energy and
      attention to the business of ICG and to the promotion of its interests.
      Executive shall not, without the written consent of the Board of Directors
      either render services to or for any person, firm, corporation or other
      entity or organization in exchange for compensation, regardless of the
      form in which such compensation is paid and whether or not it is paid
      directly or indirectly to Executive, or serve as a board member, director
      or trustee of any corporation or organization regardless of whether
      Executive is paid for such services. Nothing in this Section 3 shall
      preclude Executive from managing his personal investments and affairs,
      provided that such activities in no way interfere with the proper
      performance of his duties and responsibilities as Senior Vice President
      and General Counsel.

            (C) Subject to the direction of the Board of Directors and CEO,
      Executive shall have powers as are typically granted to a general counsel
      of a corporation engaged in a similar business to Company.

4.    TERM OF EMPLOYMENT.

      Subject to Article 9, the term of this Agreement (the "Term") shall
commence on April 25, 2005, and shall end on April 24, 2008.

5.    COMPENSATION.

      5.1 BASE SALARY. While employed under this Agreement, Executive will
receive as his compensation for the performance of his duties and obligations to
ICG under this Agreement a Base Salary of Two Hundred Sixty Thousand Dollars
($260,000) per year, which will be payable in such installments established by
ICG for all salaried employees, and which will be subject to annual review for
purposes of salary increases by the Board of Directors or any committee
designated by the Board of Directors (the base salary, as it may be increased
from time to time, is referred to herein as the "Base Salary").

      5.2 BONUS. In addition to his Base Salary, Executive will be entitled to a
performance-based annual cash bonus (the "Annual Bonus"), which will be paid as
soon as practicable following the determination by the Board of Directors of the
amount of such Annual Bonus following preparation of ICG's financial results for
the year in question. Executive will be eligible for the "Targeted Annual
Bonus," if ICG's earnings before interest, taxes, depreciation and amortization
("EBITDA") is within a reasonable range, as determined by the Board, of ICG's
forecasted EBITDA; provided, however, that the Annual Bonus awarded will be
subject to increase or decrease at the Board's discretion in the event of a
significant variance from such forecasted EBITDA. The Targeted Annual Bonus for
each year of the Term will be 100% of Base Salary. The Annual Bonus payable for
2005 will not be less than forty percent (40%) of Executive's Base Salary.

      5.3 EQUITY COMPENSATION.

            (A) Pursuant to the terms of the Plan and award agreements
      thereunder, within seven days of the Effective Date, ICG will grant
      Executive the following equity awards:

                                      -4-
<PAGE>

                  (i) Options to purchase 50,000 shares of common stock of the
            Company ("Company Stock"). The exercise price for each option shall
            be the fair market value of the Company Stock on the date of grant,
            which the parties agree shall be the IPO price of the Company Stock.
            All such options will vest 25% on the issuance date and 25% annually
            on each of the first, second and third anniversaries of the
            Effective Date.

                  (ii) A grant of 37,500 restricted shares of Company Stock. The
            restrictions on such shares of Company Stock will lapse one-third
            (1/3) annually on each of the first, second and third anniversaries
            of the Effective Date.

                  (iii) A grant of 12,500 unrestricted shares of Company Stock.

            (B) Provided that Executive shall make timely elections under
      Section 83(b) of the Internal Revenue Code of 1986, as amended (the
      "Code"), the Company will pay Executive an income tax "gross-up" payment
      such that Executive will be made whole for the federal and state income
      and employment tax impact of the equity compensation vesting of the grants
      provided for in Sections 5.3(A)(ii) and (iii) and the gross-up payment
      contemplated herein.

            (C) Any unvested grants pursuant to Sections 5.3(A)(i) and (ii) will
      accelerate and vest if: (i) there occurs a Change in Control; or (ii)
      Executive's employment is terminated other than for Cause or terminates
      with Good Reason.

      5.4 SIGN ON BONUS PAYMENT. As soon as reasonably practicable, but not
later than thirty (30) days after the Effective Date, ICG will pay to Executive
Twenty Thousand Dollars ($20,000) to compensate Executive for certain unvested
benefits lost by virtue of his resignation of employment from his prior
employer.

      5.5 [INTENTIONALLY OMITTED.]

6.    WITHHOLDING.

      All compensation payable to Executive shall be paid net of amounts
withheld for federal, state, municipal or local income taxes, Executive's share,
if any, of any payroll taxes and such other federal, state, municipal or local
taxes as may be applicable to amounts paid by an employer to its employee or to
the employer/employee relationship.

7.    [INTENTIONALLY OMITTED.]

8.    OTHER BENEFITS OF EMPLOYMENT.

      8.1 EMPLOYEE BENEFITS. Executive will be entitled to participate in such
hospitalization, life insurance, long and short term disability, 401(k) and
other employee benefit plans and programs, if any, as may be adopted by ICG from
time to time, in accordance with the provisions of such plans and programs and
on the same basis as other full-time salaried employees of ICG who participate
in such employee benefit plans (except to the extent that the

                                      -5-
<PAGE>

benefits provided under any of such plans or programs are expressly offset by
any of the benefits provided under or pursuant to this Agreement).

      8.2 EXECUTIVE BENEFITS. Executive shall be entitled to participate in any
employee benefit adopted by ICG for executive level employees. At a minimum for
Executive, such benefits shall include a company automobile consistent with
ICG's then policy on company automobiles; participation in such deferred
compensation arrangements as may be approved by the Board; reasonable financial
planning and tax preparation services; and the use of private aircraft for
business purposes as appropriate. ICG shall pay to Executive an income tax
"gross-up" payment such that Executive will be made whole for the federal and
state income tax impact of any taxable executive benefits provided hereunder and
the gross-up payment contemplated herein; provided, however, that ICG shall not
be responsible for any tax impact to Executive as a result of Section 409A of
the Code.

      8.3 STOCK BASED AWARDS. Executive shall be eligible to receive grants of
stock options, performance units, stock appreciation rights, restricted stock,
deferred shares, and other stock-based awards in accordance with the provisions
of the Plan or other stock-based award or long-term incentive plan that ICG may
adopt or amend or supersede from time to time. The terms of such grants shall be
determined by the Board of Directors (or its designee as provided in the Plan or
as appointed by the Board of Directors) in accordance with the Plan; provided,
however, that notwithstanding any provision of the Plan to the contrary, in the
event of (i) any termination of Executive's employment for any reason other than
for Cause pursuant to Section 9.1, or (ii) termination of employment for Good
Reason pursuant to Section 9.2, any stock-based award granted to Executive prior
to such Termination Date shall immediately vest and be exercisable by or issued
to the Executive under the Plan.

      8.4 TAXES AND WITHHOLDING. Executive shall be responsible for paying all
federal, state, municipal or local taxes payable by him with respect to any
benefits provided under this Section 8, and ICG will, when required by law or
when otherwise appropriate or customary, withhold from the benefits or other
compensation amounts sufficient to satisfy such taxes, unless taxes are to be
paid by ICG as set forth in the provisions of this Agreement.

      8.5 REIMBURSEMENT OF EXPENSES.

Following submission of appropriate documentation in accordance with its
policies in effect from time to time, ICG will pay or reimburse Executive for
all business expenses which Executive incurs in performing his duties under this
Agreement, including, but not limited to, travel, entertainment, professional
dues and subscriptions, and all dues, fees, and expenses associated with
membership in various professional, business, and civic associations and
societies in which Executive participates in accordance with ICG's policies in
effect from time to time.

      8.6 RELOCATION. ICG's executive offices are planned to be relocated to a
site near the Charleston, West Virginia metropolitan area. If such offices are
not located in the Charleston, West Virginia, metropolitan area, or are
subsequently relocated to a location more than thirty (30) miles from
Charleston, West Virginia, and Executive elects to relocate his residence to
such relocated offices, Executive will be entitled to relocation benefits
pursuant to ICG's relocation

                                      -6-
<PAGE>

assistance program, which shall include the reasonable and customary costs both
in the sale and purchase of Executive's primary residence, the purchase of
Executive's primary residence by ICG or its assignee for 95% of the primary
residence's appraised value if it is not sold within ninety (90) days of its
initial listing, as well as the reasonable costs associated with the relocation
of Executive's household belongings, and to the extent not deductible by
Executive, in each case, the Company shall pay to Executive an income tax
"gross-up" payment such that Executive will be made whole for the federal and
state income tax impact of any taxable benefit provided pursuant to this Section
8.6 and the gross-up payment contemplated herein. It is expressly understood
that Executive shall be under no obligation to relocate his residence to within
thirty (30) miles of ICG's executive offices.

      8.7 VACATION. Notwithstanding any policy of the company for salaried
employees, Executive will be entitled to three (3) weeks paid vacation and ICG
recognized holidays. If Executive remains employed by ICG, irrespective of the
expiration of this Agreement, then beginning on Executive's fifth anniversary of
employment, Executive shall thereafter be eligible for four (4) weeks paid
vacation and ICG recognized holidays.

9.    TERMINATION.

      9.1 TERMINATION BY ICG.

            (A) This Agreement shall automatically terminate effective upon (i)
      the date of Executive's death; (ii) the date that Executive is determined
      to be permanently Disabled or (iii) the date of Executive's retirement.

            (B) ICG may terminate this Agreement, and Executive's employment
      with ICG, without Cause upon ninety (90) days' prior written notice to
      Executive.

            (C) ICG may terminate this Agreement, and Executive's employment
      with ICG, with Cause; provided, that, Executive shall not be deemed to
      have been terminated for Cause hereunder unless and until there shall have
      been delivered to the Executive written notice of termination by ICG along
      with a copy of a resolution duly adopted by the affirmative vote of not
      less than a majority of the Board of Directors then in office (excluding
      Executive if Executive is then a member of the Board) at a meeting of the
      Board of Directors called and held for such purpose, after reasonable
      notice to Executive and an opportunity for Executive, together with
      Executive's counsel (if Executive chooses to have counsel present at such
      meeting), to be heard before the Board, finding that, in the good faith
      opinion of the Board, Executive had committed an act constituting Cause as
      herein defined and specifying the particulars thereof in detail.

      9.2 TERMINATION BY EXECUTIVE. Executive may terminate this Agreement, and
his employment with ICG, with or without Good Reason, upon sixty (60) days'
prior written notice to ICG.

      9.3 NOTICE. Any purported termination of this Agreement by ICG or
Executive shall be communicated by written notice of termination to the other
party, pursuant to Section 14.6. Such notice shall indicate the specific
termination provision in this Agreement relied upon, shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for

                                      -7-
<PAGE>

termination of Executive's employment under the provisions so indicated, and
shall specify the Termination Date (which shall not be earlier than the date of
the notice).

10.   COMPENSATION AND BENEFITS UPON TERMINATION OF EMPLOYMENT.

      10.1 TERMINATION OF EMPLOYMENT UPON DEATH. If Executive's employment is
terminated by reason of death, his estate shall be entitled to receive only the
Base Salary to which Executive was entitled through the date of death, any
accrued unpaid bonus compensation due to Executive with respect to the calendar
year prior to his death, bonus compensation for the calendar year in which
Executive's death occurs (calculated on a pro rata basis), and such other
benefits as may be available to Executive or his estate through ICG's benefit
plans and policies. The payment of said bonus compensation shall be made in a
lump sum within sixty (60) days from the Termination Date and the current year's
bonus amount by March 15 of such subsequent year.

      10.2 TERMINATION OF EMPLOYMENT UPON DISABILITY. If Executive's employment
is terminated due to his Disability, Executive shall be entitled to receive only
the Base Salary to which he was entitled through the Termination Date due to
Disability, any unpaid bonus compensation due to Executive with respect to the
calendar year prior to termination for Disability, bonus compensation for the
calendar year in which the Termination Date occurs (calculated on a pro rata
basis), and such other benefits as may be available to Executive through ICG's
benefit plans and policies. The payment of said bonus or incentive compensation
shall be made in a lump sum within sixty (60) days from the Termination Date and
the current year's bonus amount by March 15 of such subsequent year.

      10.3 TERMINATION OF EMPLOYMENT BY ICG FOR CAUSE. If Executive's employment
is terminated for Cause as provided in Section 9.1(C), Executive shall be
entitled to receive the Base Salary to which he was entitled through the
Termination Date, any unpaid bonus due to Executive with respect to a prior
year, and such other benefits as may be available to him through ICG's benefit
plans and policies in effect on the Termination Date, other than any unpaid
bonus compensation for the calendar year of termination, which shall be
forfeited.

      10.4 TERMINATION BY ICG WITHOUT CAUSE OR TERMINATION BY EXECUTIVE FOR GOOD
REASON. If ICG terminates Executive's employment without Cause pursuant to
Section 9.1(B) or if Executive terminates his employment for Good Reason
pursuant to Section 9.2, Executive shall receive the Base Salary to which he was
entitled through the Termination Date, any unpaid bonus due to Executive with
respect to a prior year, bonus compensation for the calendar year in which the
Termination Date occurs (calculated on a pro rata basis) and severance pay equal
to (A) three (3) times his Base Salary; (B) three (3) times the Executive's
Annual Bonus for the year preceding termination of employment; and (C) medical
and dental coverage under the plan(s) in effect under the COBRA eligibility
period for Executive and any eligible dependents for the period of time
Executive and/or his dependents(s) remain eligible for COBRA, but not to exceed
two (2) years from the Termination Date; provided, that Executive shall pay the
employee portion of all premiums, co-pays and deductibles on the same terms and
conditions as other senior executives of the Company from time to time. Such
severance and bonus compensation shall be paid quarterly on the last business
day of each of the eight (8) calendar quarters commencing immediately after the
Termination Date. Executive agrees that he shall not be

                                      -8-
<PAGE>

entitled to any additional compensation or benefits other than what is set out
in Sections 5.3, 5.5 and 10.4. Executive and ICG agree that the receipt of
severance benefits as defined in this Section 10.4 are conditioned upon and
subject to Executive and ICG executing a valid release agreement releasing any
and all claims which Executive has or may have against ICG arising out of
Executive's employment (other than enforcement of this Agreement and any
benefits to which Executive is entitled to under the benefit programs of the
Company).

      10.5 TERMINATION OF EMPLOYMENT BY EXECUTIVE OTHER THAN FOR GOOD REASON. If
Executive terminates employment with ICG pursuant to Section 9.2 other than for
Good Reason, Executive shall be entitled to receive only the Base Salary to
which he was entitled through the Termination Date, any unpaid bonus
compensation due to Executive for the calendar year prior, bonus compensation
for the calendar year in which the Termination Date occurs (calculated on a pro
rata basis), and such other benefits as may be available to him through ICG's
benefit plans and policies through the Termination Date. The payment of any
prior year's bonus shall be made in a lump sum within sixty (60) days from the
Termination Date and the current year's bonus by March 15 of the subsequent
year.

      10.6 NON-PAYMENT DUE TO BREACH. In the event Executive materially breaches
the covenants set forth in Section 11 hereof, then ICG's obligation to make any
remaining payments under this Agreement that have not already been paid to
Executive shall be terminated.

      10.7 CERTAIN FURTHER PAYMENTS BY ICG.

            (A) In the event that any amount or benefit paid or distributed to
      Executive pursuant to this Agreement, taken together with any amounts or
      benefits otherwise paid or distributed to Executive by ICG or any
      affiliated company (collectively, the "Covered Payments"), are or become
      subject to the tax (the "Excise Tax") imposed under Section 4999 of the
      Code), or any similar tax that may hereafter be imposed, ICG shall pay to
      Executive at the time specified in this Section 10.7 an additional amount
      (the "Excise Tax Reimbursement") such that the net amount retained by
      Executive with respect to such Covered Payments, after deduction of any
      Excise Tax on the Covered Payments and any federal, state and local income
      or employment tax and Excise Tax on the Excise Tax Reimbursement provided
      for by this Section 10.7, but before deduction for any federal, state or
      local income or employment tax withholding on such Covered Payments, shall
      be equal to the amount of the Covered Payments.

            (B) For purposes of determining whether any of the Covered Payments
      will be subject to the Excise Tax and the amount of such Excise Tax:

                  (i) such Covered Payments will be treated as "parachute
            payments" within the meaning of Section 280G of the Code, and all
            "parachute payments" in excess of the "base amount" (as defined
            under Section 280G(b)(3) of the Code) shall be treated as subject to
            the Excise Tax, unless, and except to the extent that, in the good
            faith judgment of ICG's independent certified public accountants
            appointed prior to the date upon which a change in control became
            effective or tax counsel selected by such accountants (the
            "Accountants"), ICG has a reasonable basis to conclude that such
            Covered Payments (in whole or in part) either do not

                                      -9-
<PAGE>

            constitute "parachute payments" or represent reasonable compensation
            for personal services actually rendered (within the meaning of
            Section 280G(b)(4)(B) of the Code) in excess of the "base amount,"
            or such "parachute payments" are otherwise not subject to such
            Excise Tax; and

                  (ii) the value of any non-cash benefits or any deferred
            payment or benefit shall be determined by the Accountants in
            accordance with the principles of Section 280G of the Code.

            (C) For purposes of determining the amount of the Excise Tax
      Reimbursement, Executive shall be deemed to pay:

                  (i) federal income taxes at the highest applicable marginal
            rate of federal income taxation for the calendar year in which the
            Excise Tax Reimbursement is to be made; and

                  (ii) any applicable state and local income taxes at the
            highest applicable marginal rate of taxation for the calendar year
            in which the Excise Tax Reimbursement is to be made, net of the
            maximum reduction in federal income taxes which could be obtained
            from the deduction of such state or local taxes if paid in such
            year.

            (D) In the event that the Excise Tax is subsequently determined by
      the Accountants or pursuant to any proceeding or negotiations with the IRS
      to be less than the amount taken into account hereunder in calculating the
      Excise Tax Reimbursement made, Executive shall repay to ICG, at the time
      that the amount of such reduction in the Excise Tax is finally determined,
      the portion of such prior Excise Tax Reimbursement that would not have
      been paid if such Excise Tax had been applied in initially calculating
      such Excise Tax Reimbursement. Notwithstanding the foregoing, in the event
      any portion of the Excise Tax Reimbursement to be refunded to ICG has been
      paid to any federal, state or local tax authority, repayment thereof shall
      not be required until actual refund or credit of such portion has been
      made to Executive. Executive and ICG shall mutually agree upon the course
      of action to be pursued (and the method of allocating the expenses
      thereof) if Executive's good faith claim for refund or credit is denied.

            (E) In the event that the Excise Tax is later determined by the
      Accountants or pursuant to any proceeding or negotiations with the IRS to
      exceed the amount taken into account hereunder at the time the Excise Tax
      Reimbursement is made (including, but not limited to, by reason of any
      payment the existence or amount of which cannot be determined at the time
      of the Excise Tax Reimbursement), ICG shall make an additional Excise Tax
      Reimbursement in respect of such excess (plus any interest or penalty
      payable with respect to such excess) at the time that the amount of such
      excess is finally determined.

            (F) The Excise Tax Reimbursement (or portion thereof) provided for
      in Section 10.7(A) above shall be paid to Executive not later than ten
      (10) business days following the payment of the Covered Payments;
      provided, however, that if the amount

                                      -10-
<PAGE>

      of such Excise Tax Reimbursement (or portion thereof) cannot be finally
      determined on or before the date on which payment is due, ICG shall pay to
      Executive by such date an amount estimated in good faith by the
      Accountants to be the minimum amount of such Excise Tax Reimbursement and
      shall pay the remainder of such Excise Tax Reimbursement as soon as the
      amount thereof can be determined, but in no event later than forty five
      (45) calendar days after payment of the related Covered Payment.

11.   CONFIDENTIALITY AND NON-SOLICITATION.

      11.1 NON-DISCLOSURE. Executive, both during the term hereof and
thereafter, will not, directly or indirectly, use for himself or use for, or
disclose to, any party other than ICG, any secret or confidential information or
data regarding the business of ICG or any secret or confidential information or
data regarding the business or property of ICG or regarding any secret or
confidential apparatus, process, system or other method at any time use,
developed or investigated by or for ICG, whether or not developed, acquired,
discovered or investigated by Executive. Upon termination or expiration of this
Agreement or as soon thereafter as possible, Executive shall promptly deliver to
ICG all memoranda, notes, records, plats, sketches, plans or other documents
made by, compiled by, delivered to, or otherwise acquired by Executive
concerning the business or properties of ICG or any secret or confidential
product, apparatus or process used, developed, acquired or investigated by ICG.

      11.2 NO SOLICITATION. Executive hereby agrees and covenants that during
the term of this Agreement, and for a period of two (2) years thereafter so long
as ICG is not in material breach of this Agreement, he shall not, directly or
indirectly, on his own behalf or with others (A) induce or attempt to induce any
ICG employee who is a direct report to Executive, any ICG Senior Vice President,
or CEO or who is a president, mine superintendent or maintenance superintendent
or an equivalent position of any subsidiary or operating unit of ICG ("Protected
Employee") to leave the employ of ICG, or in any way interfere with the
relationship between ICG and any Protected Employee except that it is
specifically agreed by Executive and ICG that this Section 11.2 is not violated
by any response by a Protected Employee to a publicly announced job opening with
Executive or his subsequent employer whether such announcement appears in
newspapers, trade publications, web sites or similar public media; (B) induce or
attempt to induce any referral source, customer or other business relation of
ICG not to do business with ICG, or to cease doing business with ICG; or (C)
solicit, divert or actively take away, or attempt to solicit, divert or take
away, for purposes of conducting a business substantially similar to the
business of ICG, any individual, corporation, partnership or other association
or entity who as of the Termination Date, both (i) had a business relationship
with ICG or, to Executive's knowledge, was during the ninety (90) day period
preceding the Termination Date solicited in writing by ICG for business (whether
or not he, she or it became an actual customer) and (ii) was personally
contacted by Executive during such ninety (90) day period; provided, however,
that the foregoing provisions of this Section 11.2 shall not prohibit Executive
from participating in any response to an open bidding or quote request of any
customer of ICG, or prohibit Executive from any solicitation that does not,
directly or indirectly, divert business from ICG; and, provided further, that
Executive and any subsequent employer may in the ordinary course of business
compete with ICG for customers, properties or otherwise, without violating this
Section 11.2, provided that Executive shall not attempt to induce any entity

                                      -11-
<PAGE>

with which ICG has any existing business relationship to terminate that business
relationship prior to the termination of existing contracts or orders with that
entity.

      11.3 INJUNCTIVE RELIEF. Executive acknowledges that it is impossible to
measure in money the damages that will accrue to ICG by reason of Executive's
failure to observe any of the obligations imposed on him by this Section 11.
Accordingly, if ICG shall institute an action to enforce the provisions hereof,
Executive hereby waives the claim or defense that an adequate remedy at law is
available to ICG, and Executive agrees not to urge in any such action the claim
or defense that such remedy at law exists.

      11.4 SEVERABILITY. If a final determination is made by a court having
competent jurisdiction that the time or territory or any other restriction
contained in Sections 11.1 and 11.2 is an unenforceable restriction on
Executive's activities, the provisions of such sections shall not be rendered
void but shall be deemed amended to apply such maximum time and scope and such
other restrictions as such court may judicially determine or otherwise indicate
to be reasonable.

12.   REPRESENTATIONS.

      12.1 Except for confidentiality restrictions imposed upon attorneys by
ethical codes of conduct, Executive hereby represents that he is not subject to
any restriction of any nature whatsoever on his ability to enter into this
Agreement or to perform his duties and responsibilities hereunder.

      12.2 Except for confidentiality restrictions imposed upon attorneys by
ethical codes of conduct, Executive hereby represents that, except as he has
disclosed in writing to ICG, he is not bound by the terms of any agreement with
any previous company or other party to refrain from using or disclosing any
trade secret or confidential or proprietary information in the course of
Executive's employment with ICG or to refrain from competing, directly or
indirectly, with the business of such previous company or any other party

      12.3 Except for confidentiality restrictions imposed upon attorneys by
ethical codes of conduct, Executive hereby represents that, to the best of his
knowledge, his performance of all the terms of this Agreement and as an employee
of ICG does not and will not breach any agreement with another party, including
without limitation any agreement to keep in confidence proprietary information,
knowledge or data Executive acquired in confidence or in trust prior to his
employment with ICG, and that he will not knowingly disclose to ICG or induce
ICG to use any confidential or proprietary information or material belonging to
any previous company or others

      12.4 Executive further represents that, to his knowledge, his past actions
in the coal industry will not cause ICG to be permanently or materially permit
blocked due to Executive's employment hereunder, and Executive will promptly and
diligently cooperate to remove as soon as reasonably practicable any asserted
link under the "Applicant Violator System" as maintained by the Federal Office
of Surface Mining and any similar state program.

                                      -12-
<PAGE>

13.   INDEMNIFICATION.

      ICG shall, to the fullest extent to which it is empowered to do so by the
General Corporation Law of Delaware, or any other applicable laws, as from time
to time in effect, and in the manner therein provided, indemnify and hold
harmless Executive, through the duration of the Term and all statutory periods
during which any such claim may be brought or asserted, from and against any
actual, threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative, investigative or otherwise, to which Executive
is or is threatened to be made a party by reason of the fact that he is or was a
director, officer, employee or agent of ICG. Executive will be further covered
by the indemnification and limitations on liability of officers and directors
provided under ICG's Certificate of Incorporation and By-laws and any separate
agreement between ICG and Executive and/or any officers and directors
indemnification insurance policy now or hereafter paid for by ICG.

14.   MISCELLANEOUS.

      14.1 ASSIGNMENT. This Agreement shall be binding upon the parties hereto,
their respective heirs, personal representatives, executors, administrators and
successors; provided, however, that Executive shall not assign this Agreement.

      14.2 GOVERNING LAW. This Agreement shall be construed under and governed
by the internal laws of the State of Delaware without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Delaware.

      14.3 COMPLIANCE WITH SECTION 409A OF THE CODE. This Agreement is intended
to comply with Section 409A of the Code and shall be construed and interpreted
in accordance with such intent. To the extent any benefit paid under this
Agreement shall be subject to Section 409A of the Code, such benefit shall be
paid in a manner that will comply with Section 409A of the Code, including
proposed, temporary or final regulations or any other guidance issued by the
Secretary of Treasury and the IRS with respect thereto (the "Guidance"). Any
provision of this Agreement that would cause the payment of any benefit to fail
to satisfy Section 409A of the Code shall have no force and effect until amended
to comply with Code Section 409A (which amendment may be retroactive to the
extent permitted by the Guidance).

      14.4 ARBITRATION.

            (A) Any dispute, claim or controversy arising out of or relating to
      this Agreement, including without limitation any dispute, claim or
      controversy concerning validity, enforceability, breach or termination
      hereof, shall be finally settled through arbitration by a single
      arbitrator selected under the rules of the American Arbitration
      Association for arbitration of employment disputes conducted in the city
      of Executive's domicile. Each party will be entitled to present evidence
      and argument to the arbitrator. The arbitrator will have the right only to
      interpret and apply the provisions of this Agreement and may not change
      any of its provisions, except as expressly provided in Section 14.7. The
      arbitrator will permit reasonable pre-hearing discovery of facts, to the
      extent necessary to establish a claim or a defense to a claim, subject to
      supervision by the

                                      -13-
<PAGE>

      arbitrator. In addition, the Company shall propose a reasonable set of
      rules to guide any proceedings under this Section 14.4(A). Such rules
      shall be designed to lead to a prompt and just result without undue delay
      or expense, but will not be unduly prejudicial to either party. The
      determination of the arbitrator will be conclusive and binding upon the
      parties and judgment upon the same may be entered in any court having
      jurisdiction thereof. The arbitrator will give written notice to the
      parties stating the arbitrator's determination, and will furnish to each
      party a signed copy of such determination. The expenses of arbitration
      will be borne equally by ICG and Executive or as the arbitrator equitably
      determines consistent with the application of state or federal law;
      provided, however, that Executive's share of such expenses will not exceed
      the maximum permitted by law. Any arbitration or action pursuant to this
      Section 14.4(A) will be governed by and construed in accordance with the
      substantive laws of the state of Executive's domicile and, where
      applicable, federal law, without giving effect to the principles of
      conflict of laws of such state.

            (B) Notwithstanding Section 14.4(A), ICG will not be required to
      seek or participate in arbitration regarding any actual or threatened
      breach of Executive's covenants in Section 11, but may pursue its
      remedies, including injunctive relief, for such breach in a court of
      competent jurisdiction in state of Executive's domicile, or in the sole
      discretion of ICG, in a court of competent jurisdiction where Executive
      has committed or is threatening to commit a breach of Executive's
      covenants in Section 11, and no arbitrator may make any ruling
      inconsistent with the findings or rulings of such court.

      14.5 ENTIRE AGREEMENT. This Agreement between Executive and ICG, set forth
the entire agreement of the parties concerning the employment of Executive by
ICG, and any other oral or written statements, representations, agreements, or
understandings made or entered into prior to or contemporaneously with the
execution of this Agreement, are hereby rescinded, revoked, and rendered null
and void by the parties. Both parties hereto have participated in the selection
of the words and phrases set forth in this Agreement in order to express their
joint intentions in entering into this employment relationship, and the parties
hereto agree that there shall not be strict interpretation against either party
in connection with any review of this Agreement in which interpretation thereof
is an issue.

      14.6 NOTICES. Any notice required or permitted under this Agreement shall
be deemed to have been effectively made or given if in writing and personally
delivered, or mailed properly addressed in a sealed envelope, postage prepaid by
certified or registered mail, delivered by a reputable overnight delivery
service or sent by facsimile. Unless otherwise changed by notice, notice shall
be properly addressed to Executive if addressed to the address of Executive on
the books and records of ICG at the time of the delivery of such notice, and
properly addressed to ICG if addressed to:

                  President and Chief Executive Officer
                  International Coal Group Inc.
                  2000 Ashland Drive
                  Ashland, Kentucky 41101

                                      -14-
<PAGE>

      14.7 SEVERABILITY. Wherever there is any conflict between any provision of
this Agreement and any statute, law regulation or judicial precedent, the latter
shall prevail, but in such event the provisions of this Agreement thus affected
shall be curtailed and limited only to the extent necessary to bring them within
the requirements of law. In the event that any provision of this Agreement shall
be held by a court of competent jurisdiction to be indefinite, invalid, void or
voidable or otherwise unenforceable, the balance of this Agreement shall
continue in full force and effect unless such construction would clearly be
contrary to the intentions of the parties or would result in an unconscionable
injustice.

      14.8 SURVIVAL. Executive and ICG agree that upon termination of
Executive's employment, the obligations of each of the parties under this
Agreement shall expire as of the Termination Date, including, without
limitation, the obligations of ICG to pay any compensation to Executive, except
to the extent otherwise specifically provided in this Agreement. Notwithstanding
the foregoing, the obligations contained in Section 11 of this Agreement, the
provisions hereof relating to the obligations of ICG described in the preceding
sentence and any other provision of this Agreement that is intended to continue
in full force and effect after the termination of Executive's employment, shall
survive the termination or expiration of this Agreement in accordance with the
terms set forth therein.

      14.9 [INTENTIONALLY OMITTED.]

      14.10 COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

                         [Remainder of Page Left Blank]

                                      -15-
<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed the day and year first above written.

                                            Company:

                                            INTERNATIONAL COAL GROUP, INC.

                                            /s/ Bennett K. Hatfield
                                            __________________________________
                                            Bennett K. Hatfield

                                            Executive

                                            /s/ Roger L. Nicholson
                                            __________________________________
                                            Roger L. Nicholson

                                      -16-

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