INTELLECTUAL PROPERTY SECURITY AGREEMENT

                                                                     EXHIBIT 4.7

                                                                  EXECUTION COPY

                    INTELLECTUAL PROPERTY SECURITY AGREEMENT

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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