Document:

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                                                                    EXHIBIT 10.4

                          SHAREHOLDERS VOTING AGREEMENT

      This Shareholders Voting Agreement, dated as of June 23, 2004, is made by
and between Ronald G. Geary, of Louisville, Kentucky ("Geary") and Onex Partners
LP, a Delaware limited partnership ("Onex").

                           - PRELIMINARY STATEMENTS -

      As of the date hereof, Geary is the legal and/or beneficial owner of
774,073 shares of common stock of Res-Care, Inc. (the "Company"), a Kentucky
corporation, and options to purchase 601,702 shares of Company common stock (the
"Options").

      Onex, along with other affiliated entities (the "Purchasers"), is entering
into a Preferred Stock Purchase Agreement with the Company dated March 10, 2004,
under which the Purchasers will purchase and the Company will sell 48,905 shares
of Series A convertible preferred stock of the Company, subject to the terms of
such Preferred Stock Purchase Agreement.

      Concurrently, the Purchasers are entering into a Stock Purchase Agreement
dated March 10, 2004 (the "Shareholder Stock Purchase Agreement") with Geary
wherein the Purchasers will purchase and Geary will sell 300,000 shares of
common stock of the Company of which he is the legal and beneficial owner,
subject to the terms of such Shareholder Stock Purchase Agreement.

      As a condition to entering into the Preferred Stock Purchase Agreement as
well as the Stock Purchase Agreement, Onex is requiring that Geary enter into
this Shareholders Voting Agreement which shall provide Onex: (i) the right to
vote the Shares (as hereinafter defined) in all matters regarding the
composition of the Board of Directors of the Company, and (ii) the first right
to purchase any and all of the Shares that Geary desires to sell during the term
of this Agreement.

      NOW THEREFORE, in consideration of the premises, and for good and valuable
consideration, the parties agree as follows:

                                 -- AGREEMENT --

      1. Voting. Geary hereby grants Onex, or its authorized representative, and
its successors and assigns, the sole legal right to vote the Shares (including
any pledged Shares with respect to which Geary has retained voting rights), in
person or by proxy, at any meeting of the Shareholders or by written consent,
with respect to any matter involving or associated with the election, removal
and/or replacement of any of the members of the Company's Board of Directors or
any matter affecting the number of directors or composition of the Board. For
purposes of this Agreement, the term "Shares" shall mean (i) those shares of
common stock of the Company owned by Geary, personally (or owned by an entity
controlled by Geary) as of the date of this Agreement and any and all shares of
common stock of the Company acquired by Geary personally (or acquired by an
entity controlled by Geary) during the term of this Agreement, and (ii) any
shares of the common stock of the Company acquired upon the exercise of Options
(net of any shares sold in effecting a cashless exercise of Options).
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      2. Proxy.

            (a) Geary shall execute a proxy (with the full power of
substitution) in favor of Onex, or its designated representatives, in the form
attached hereto as Exhibit A (the "Proxy") with the full power to vote and
otherwise act with respect to the Shares on all matters specifically set forth
in Section 1. The proxy shall only be exercisable in accordance with this
Agreement, shall not be revoked prior to the termination of this Agreement, and
shall automatically be revoked upon the termination or expiration of this
Agreement.

            (b) Geary hereby revokes all other proxies and powers of attorney to
vote and otherwise act with respect to the Shares on all matters specifically
set forth in Section 1 which Geary may have heretofore appointed or granted and
no subsequent proxy or power of attorney shall be given or written consent
executed by Geary with respect to such matters prior to the termination or
expiration of this Agreement.

            (c) Geary covenants and agrees that, except as contemplated by this
Agreement, Geary has not entered into any voting agreement or granted a proxy or
power of attorney with respect to the Shares which is inconsistent with this
Agreement.

      3. Right of First Refusal.

            (a) In General. The parties intend to give the Purchasers a right of
first refusal to acquire any Shares that Geary proposes to sell, but the parties
do not intend to otherwise restrict any transactions involving the Shares or to
otherwise limit Geary's full exercise of all rights of ownership, including the
right to pledge the Shares as collateral, the right to transfer the shares to
controlled entities or affiliates for estate planning purposes, and the right to
contract for the sale or transfer of the Shares provided the Purchasers' right
of first refusal is acknowledged and remains effective at all times.

            (b) Exclusive Right to Purchase the Shares. Geary hereby grants Onex
the sole and exclusive first right to purchase any of the Shares Geary desires
to sell or otherwise transfer during the term of this Agreement. If Geary
desires to sell any or all of the Shares, Geary will deliver to Onex written
notice of his intent to sell which shall specify (i) the number of Shares owned
by Geary which Geary wishes to sell (the "Offered Shares"), (ii) the proposed
cash purchase price per share of the Offered Shares or the proposed method and
terms of sale if the purchase price will be set at the market or otherwise based
on future events (the "Offer Price") and (iii) all other terms and conditions of
the offer. The notice shall be given not less than five days prior to the date
of the proposed sale. Onex shall have the right to purchase the Offered Shares
on the same terms and conditions as the proposed sale, which right shall
automatically expire if not exercised by the payment to Geary of the Offer Price
at the same time and otherwise under the same conditions as the proposed sale.
For example, if Geary proposes to sell the Shares at the market in a Rule 144
transaction, Geary shall give Onex at least five days notice of his intention to
sell the Shares, specifying a date and time or method of executing the
transaction, and Onex shall have the right to purchase the shares at the price
that would have been received by Geary had the Shares been sold in accordance
with Rule 144 in a market transaction at the specified time or in accordance
with the specified method. If Onex does not accept the offer prior to the date
of the proposed sale, Onex's right of first refusal shall automatically expire
and Geary may execute the transaction as proposed. Provided, that if the Offer
Price is to be received in a transaction with respect to which gain or loss will
not be recognized by Geary for federal income purposes, the Offer Price to be
paid by Onex shall be equal to the value of the consideration to be received and
shall be grossed up to include an additional amount (the "gross up amount")
sufficient to reimburse Geary for all federal, state, and local income or excise
taxes payable on the sale to Onex, taking into account taxes payable on the
Offer Price and the gross up amount. If for any reason a proposed transaction by
Geary is not executed, Onex's right of first refusal shall apply to any
subsequent proposed transaction.

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            (c) Legend on Share Certificates. The certificates evidencing all
Shares owned by Geary shall bear the following legend:

                  "The shares represented by this Certificate are subject to a
                  Shareholders Voting Agreement dated June 23, 2004 by and
                  between Ronald G. Geary and Onex Partners LP, a Delaware
                  limited partnership. The Agreement contains certain provisions
                  which (i) assign certain voting rights and (ii) a right of
                  first refusal with respect to the shares.

            (d) Pledges, Permitted Transfers, and Contracts for Sale. If Geary
pledges the Shares as collateral, or transfers the Shares to a family member or
to an entity controlled by Geary or a family member, or contracts for the sale
or other disposition of the Shares (such as a straddle transaction or for the
delivery of the Shares to settle an obligation such as a prepaid variable share
forward contract), or transfers the Shares to a charitable organization or in
exchange for a partnership interest or other interest in an exchange fund or
similar entity, Geary shall cause the pledgee, transferee, or other party to (i)
acknowledge Onex' right of first refusal to purchase the Shares prior to any
sale by such pledgee, transferee, or other party, and (ii) agree to be bound by
the provisions of this Agreement with respect to the voting of the Shares and
Onex' right of first refusal.

            (e) Currently Pledged Shares. Geary has previously pledged 700,000
of the Shares to (i) National City Bank, (ii) Stock Yards Bank & Trust, and
(iii) Old National Bank Corp. Onex is granted a right of first refusal with
respect to such pledged Shares, but Onex takes its rights under this Agreement
subject to the existing rights of such pledgee. Geary shall have no obligation
whatsoever to cause such pledgee to grant Onex any rights with respect to the
pledged Shares.

      4. Representations and Warranties of Geary. Geary hereby represents and
warrants to Onex as follows:

            (a) Authority Relative to This Agreement. Geary is an adult, is a
citizen of the United States of American and is competent to execute and deliver
this Agreement, to perform his obligations hereunder and to consummate the
transactions contemplated hereby. This Agreement has been duly and validly
executed and delivered by Geary, and, constitutes a legal, valid and binding
obligation of Geary, enforceable against Geary in accordance with its terms.

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            (b) No Conflict.

                  (i) The execution and delivery of this Agreement by Geary does
not, and the performance of this Agreement by Geary does not, (A) conflict with
or violate any law, rule, regulation, order, judgment or decree applicable to
Geary or by which the Shares are bound or affected, or (B) result in any breach
of or constitute a default (or an event that with notice or lapse of time or
both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in the creation of a lien
or encumbrance on any of the Shares pursuant to, any note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise or other
instrument or obligation to which Geary is a party or by which Geary or the
Shares are bound or affected, except, in the case of each of the foregoing, for
any such conflicts, violations, breaches, defaults or other occurrences which
would not prevent or delay the performance by Geary of his obligations under
this Agreement.

                  (ii) The execution and delivery of this Agreement by Geary
does not, and the performance of this Agreement by Geary shall not, require any
consent, approval, authorization or permit of, or filing with or notification
to, any third party.

            (c) Title to the Shares. As of the date hereof, Geary is the record
and/or beneficial owner of the Shares and Options, which are all of the
securities of the Company owned, either of record or beneficially, by Geary, and
which are set forth on Exhibit 1. Except as provided in this Agreement, Geary
has not appointed or granted any proxy, which appointment or grant is still
effective, with respect to the Shares. The Shares and the Options are free and
clear of all liens and encumbrances, except (i) the liens and encumbrances on
the pledged Shares identified in Section 3(e), and (ii) the liens and
encumbrances of the agreements pursuant to which the Options were issued.

      5. Conditions Precedent. The obligations of the parties under this
Agreement to enter into and complete the transactions contemplated herein are
conditioned upon the closing of the Shareholder Stock Purchase Agreement.

      6. Miscellaneous.

            (a) Term and Termination. This Agreement shall become effective upon
the closing of the Shareholder Stock Purchase Agreement. All obligations
hereunder shall terminate upon the earliest to occur of the following: (i) the
mutual written consent of all parties; (ii) at such time as the Purchasers own
legally or beneficially less than 14,428 shares of the outstanding Series A
Convertible Preferred stock of the Company (determined on an as converted
basis); (iii) upon the termination of Geary's employment by the Company for any
reason whatsoever, with or without cause; (iv) upon Geary's resignation or
termination of his employment by the Company for good reason; (v) upon a change
in control of the Company; (vi) upon Geary's retirement as an employee of the
Company upon the normal termination of his current employment contract, or (vii)
a merger, consolidation, share exchange, or other business combination in which
the Company is not the acquiror. Provided, that if the obligations hereunder
terminate as a result of the events described in clauses (iii), (iv), or (vi),
then (A) Purchasers shall have the right (but not the obligation) to submit an
offer to Geary to purchase any Shares then held by Geary, and Geary shall have
the right (but not the obligation) to submit an offer to Purchasers to sell any
Shares then held by Geary, and (B) the recipient of the offer shall give such
offer due consideration.

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            (b) Enforcement of Agreement. The parties hereto agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with its specific terms or were
otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to
specific performance of the terms and provisions hereof in addition to any other
remedy to which they are entitled at law or in equity.

            (c) Successors and Affiliates. This Agreement shall inure to the
benefit of and shall be binding upon the parties hereto and their respective
heirs, legal representatives and assigns. If Geary shall acquire ownership of,
or voting power with respect to, any additional shares of Company common stock
in any manner, whether by the exercise of any Options or any securities or
rights convertible into or exchangeable for Company common stock, operation of
law or otherwise, such shares shall be held subject to all of the terms of this
Agreement, and by taking and holding such shares, Geary shall be conclusively
deemed to have agreed to be bound by and to comply with all of the terms and
provisions of this Agreement. Without limiting the foregoing, Geary specifically
agrees that his obligations hereunder shall not be terminated by operation of
law, whether by his death or incapacity or otherwise.

            (d) Entire Agreement. This Agreement constitutes the entire
agreement between Onex and Geary with respect to the subject matter hereof and
supercedes all prior agreements and understandings, both written and oral,
between Onex and Geary with respect to the subject matter hereof.

            (e) Amendment. This Agreement may not be amended except by an
instrument in writing signed by the parties hereto.

            (f) Waivers. Except as provided in this Agreement, no action taken
pursuant to this Agreement, including, without limitation, any investigation by
or on behalf of any party, shall be deemed to constitute a waiver by the party
taking such action of compliance with any representations, warranties, covenants
or agreements contained in this Agreement. The waiver by any party hereto of a
breach of any provision hereunder shall not operate or be construed as a waiver
of any prior or subsequent breach of the same or any other provision hereunder.

            (g) Severability. If any term or other provision of this Agreement
is invalid, illegal or incapable of being enforced by any rule of law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible to the fullest extent
permitted by applicable law in a mutually acceptable manner in order that the
terms of this Agreement remain as originally contemplated to the fullest extent
possible.

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            (h) Notices. All notices and other communications given or made
pursuant hereto shall be in writing and shall be deemed to have been duly given
or made and shall be effective upon receipt, if delivered personally, mailed by
registered or certified mail (postage prepare, return receipt requested) to the
parties at the following addresses (or at such other address for a party as
shall be specified by like changes of address) or sent by electronic
transmission (provided that a confirmation copy is sent by another approved
means) to the telecopier number specified below:

                  If to Geary at:    603 Flat Rock Road
                                     Louisville, Kentucky 40245

                  With a copy to:    C. Christopher Trower, Esq.
                                     3159 Rilman Rd. NW
                                     Atlanta, Georgia 30327-1503

                  If to Onex at:     712 Fifth Ave., 40th Floor
                                     New York, NY 10019
                                     Attn: Robert M. Le Blanc

                  With a copy to:    James C. Seiffert, Esq.
                                     STITES & HARBISON PLLC
                                     400 West Market Street, Suite 1800
                                     Louisville, KY 40202-3352

            (i) Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the Commonwealth of Kentucky
regardless of the laws that might otherwise govern under applicable principles
of conflicts of law.

            (j) Submission To Jurisdiction; Consent To Service Of Process. Each
of the parties hereto hereby irrevocably and unconditionally consents to submit
to the exclusive jurisdiction of the courts of the Commonwealth of Kentucky and
of the United States District Court in the Commonwealth of Kentucky, for any
actions, suits or proceeding arising out of or relating to this Agreement and
the transactions contemplated hereby (and agrees not to commence any action,
suit or proceeding relating thereto except in such courts) and further agrees
that service of any process, summons, notice or document by U.S. registered mail
to its respective address set forth in Section 6(h) of this Agreement shall be
effective service of process for any action, suit or proceeding brought against
it in any such court. Each of the parties hereto hereby irrevocably and
unconditionally waives any objection to the venue of any action, suit or
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby in the court of the Commonwealth of Kentucky or in the
United States District Court for the Commonwealth of Kentucky, and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such action, suit or proceeding brought in any such
court has been brought in an inconvenient forum.

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      IN WITNESS WHEREOF, each of the parties hereto have caused this Agreement
to be duly executed on the date hereof.

                                    /s/ Ronald G. Geary
                                    --------------------------------------------

                                    Ronald G. Geary

                                    ONEX PARTNERS LP

                                    By: ONEX PARTNERS GP LP, its General Partner

                                    By: ONEX PARTNERS MANAGER, LP, its Agent

                                    By: ONEX PARTNERS MANAGER GP, INC.,
                                        its General Partner

                                    By:

                                    /s/ Robert M. Le Blanc
                                    --------------------------------------------
                                         Name:  Robert M. Le Blanc
                                         Title:  Managing Director

                                    By:

                                    /s/ Eric J. Rosen
                                    --------------------------------------------
                                         Name:  Eric J. Rosen
                                         Title:   Mnaging Director

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                                                                   EXHIBIT 10.4

                              APPOINTMENT OF PROXY

      The undersigned, as a shareholder of RES-CARE, INC., a Kentucky
corporation (the "Corporation"), appoints Robert M. Le Blanc, Vice President of
ONEX PARTNERS GP, INC., an affiliate of ONEX PARTNERS LP, a Delaware limited
partnership ("ONEX") as my attorney-in-fact, agent, and proxy, with the full
power of substitution and revocation, to attend any and all meetings, annual or
special, of the shareholders of the Corporation, and to vote and otherwise act
in accordance with his judgment or provide his consent with respect to all
shares of common stock of the Corporation which the undersigned is then entitle
to vote on all questions, propositions, resolutions or any other matters which
may come before any such meeting (or any adjournment thereof) or are the subject
of any written consent, which deal specifically with the election, removal or
replacement of members of the Company's Board of Directors or any mater
affecting the number of directors or composition of the Board, and act in my
behalf and in my name as fully as I could act as if I were present at such
meeting or meetings.

      This appointment of an proxy is issued in accordance with the terms of a
Shareholders Voting Agreement by and between the undersigned and ONEX, dated
June 23, 2004, (the "Agreement") and is coupled with an interest. This
appointment will terminate in accordance with the termination or expiration of
the Agreement.

                                                  /s/ Ronald G. Geary
                                                  ------------------------------
                                                  Ronald G. Geary

Dated June 23, 2004

Witness:

/s/ Mary D. Peters
--------------------------

/s/ Alan K. MacDonald
--------------------------RESIGNATION AND NON-COMPETE AGREEMENT

      This  Agreement  ("Agreement")  is  entered  into  this 21st day of July,
2004 between  KMGP  Services,  Inc. (on behalf of itself and the other  persons
and entities included in the definition of KM (as defined below),  and Michael
C. Morgan ("Employee").

      WHEREAS, Employee is currently employed as an at-will employee of KM;

      WHEREAS,  Employee  has decided to resign from his  position as President
of Kinder  Morgan,  Inc.  ("KMI"),  Kinder  Morgan G.P.,  Inc.,  Kinder  Morgan
Management,  LLC and as an officer and director of their respective  affiliates
in  order  to  pursue  other   opportunities,   including  as  a  principal  of
Portcullis  Partners,  L.P.,  while  remaining an unpaid employee and retaining
his membership on KMI's Board of Directors (the "Board");

      WHEREAS,  the parties  wish to provide for certain  terms and  conditions
associated with this resignation;

      WHEREAS,  the parties negotiated certain terms to extend past employment,
including,    without   limitation,    terms   relating   non-competition   and
confidentiality;

      WHEREAS,  Employee agrees that ample consideration was provided to ensure
enforcement of such provisions;

      NOW  THEREFORE,  in  consideration  of the  foregoing  premises  and  the
following promises, the parties agree as follows:

      1. Intent of the Parties. It is the intent of the parties that all rights
under any previous agreement(s) or understandings concerning Employee's
employment by KM shall be waived and forfeited upon execution of this Agreement,
except as described on Schedule 1 attached hereto.

      2. Definitions.

         (a)  KM. "KM" as used in this Agreement shall mean and include Kinder
Morgan Energy Partners, L.P., Kinder Morgan, Inc., Kinder Morgan Management, LLC
and their respective divisions, subsidiaries, parents and/or affiliates,
successors or assigns, and, for purposes of this Agreement, the term
"affiliates" shall have the same definition as the term "affiliated group" in
Section 1504(a) of the Internal Revenue Code of 1986, as amended from time to
time.

         (b)  Confidential Information.  "Confidential Information" shall
include all information comprising, concerning or relating to (i) KM's Customers
(as defined below), providers, suppliers, and other business affiliates; (ii)
KM's policies, practices, operating information, pricing, profits, margins,
costs, expenses, return expectations, financial information, business plans,
economic models and market approaches; and (iii) other information, techniques
or approaches used by KM and not generally known or applied in KM's industry. KM
believes that some or all of this information constitutes trade secrets;
however, the Confidential Information covered in this Agreement need not satisfy
the legal definition or requirements of a

<PAGE>

"trade secret" to be protected from disclosure hereunder.  Confidential
Information shall not include any information that is generally known in KM's
industry and information already known to any future employer of Employee
through no fault of Employee, and any information disclosed by KM in public
filings including without limitation SEC or FERC filings.

         (e)  Customer. "Customer" shall include any person or entity to whom
at any time during the Employment Period (as defined below) services are being
sold by KM, and any person or entity with which, at any time during the
Employment Period, KM has established a strategic marketing alliance.

         (f)  Effective Date.  This Agreement shall be effective upon execution
hereof by both parties.

      3.  Resignation.  Employee hereby resigns his position as an officer and
director of each entity included in KM, other than his position as a director
of KMI.

      4.  KM's Promises.  In consideration of Employee's performance hereunder:

         (a)  Bonus. Employee will be eligible for a 2004 annual incentive bonus
under the terms of the KM bonus program. All Bonus Payments shall be subject to
applicable required withholdings. Employee shall not be eligible for an annual
incentive bonus for any periods flowing calendar year 2004.

         (b)  Medical Benefits.  KM agrees to provide best efforts to allow
Employee to participate, at Employee's cost, in those health benefit plans that
active employees are eligible to participate in to the extent permissible by
applicable law and subject to the terms and conditions of the applicable
plan(s).

         (c)  Restricted Stock.  In consideration for Employee's promises set
forth in Section 5 below (but not in consideration for Employee's service as a
director of KMI) and subject to Section 6 below, Employee shall continue to hold
23,333 shares of restricted stock of KMI (as described on Schedule 1 attached
hereto) on the same terms and conditions as are set forth in that certain
Restricted Stock Agreement (the "July 16, 2003 Grant"), dated July 16, 2003,
between Employee and KMI; provided that (i) 8,333 shares shall vest and cease to
be subject to forfeiture restrictions on July 16, 2006 and 15,000 shares shall
vest on July 16, 2008; (ii) 76,667 shares subject to the July 16, 2003 Grant
shall be forfeited; and (iii) to the extent the approval of the shareholders of
KMI is not necessary for Employee to continue to hold such 23,333 shares or to
cancel the July 16, 2003 Grant and issue Employee a new grant of 23,333 shares
of restricted stock of KMI, KM may substitute cash payments in lieu of the value
of the restricted stock and the dividends paid thereon. Such payments shall be
made (x) on July 16, 2006 and July 16, 2008 in the case of the value of the
shares of restricted stock and (y) on the date(s) KMI pays dividends to its
shareholders in the case of dividends.

      5.  Employee's Promises.  Employee acknowledges and agrees that; 1) KM and
its affiliates are engaged in, among other things, owning and/or operating
integrated natural gas assets, products, chemicals and bulk terminals, refined
products, natural gas, natural gas liquids and carbon dioxide pipelines,
electricity generating assets, crude oil production assets and other midstream
energy assets; (the "Business"); 2) the Business is conducted throughout the

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<PAGE>

United States; 3) his work for KM gave and will continue (during the Employment
Period) to give him access to Confidential Information, proprietary information
and trade secrets of and concerning KM, KM's actual and potential Customers,
providers, suppliers, and other business affiliates; 4) his work for KM gave and
will continue (during the Employment Period) to give him access to KM's actual
and potential Customers, providers, suppliers, and other business affiliates
with whom KM has expended substantial efforts to successfully establish
goodwill; and 4) the agreements and covenants contained in this Paragraph 4 are
essential to protect the Business and the trade secrets, Confidential
Information, proprietary information, goodwill and other legitimate interests of
KM. Accordingly, Employee agrees and covenants as follows:

         (a)  Confidential Information.  Employee agrees and covenants that he
shall not at any time, directly or indirectly, (i) use or apply any Confidential
Information for any purpose not expressly authorized by an officer of KM, alone
or with any other person or entity; or (ii) disclose or provide any Confidential
Information to any person or entity not expressly authorized by an officer of KM
to receive such Confidential Information provided, however, that Employee shall
not be held in breach of this provision should Employee be required to testify
pursuant to subpoena under oath or as otherwise required by law, provided
additionally that Employee testifies truthfully and that, prior to providing
such testimony, Employee notifies KM within 48 hours that his testimony is being
sought so as to permit KM to seek to prevent or limit such testimony or
otherwise seek to obtain a protective order.

         (b)  Non-Disparagement Agreement.  Employee agrees and covenants that
he will not in any way knowingly disparage KM, its officers, directors,
employees, consultants, agents, or business performance, methods, practices,
operations, decisions or plans; provided, however, that Employee shall not be
held in breach of this provision should Employee be required to testify pursuant
to subpoena under oath or as otherwise required by law, provided additionally
that Employee testifies truthfully and that, prior to providing such testimony,
Employee notifies KM within 48 hours that his testimony is being sought so as to
permit KM to seek to prevent or limit such testimony or otherwise seek to obtain
a protective order. KM likewise agrees not to disparage Employee, in the same
manner and subject to the same limitations set forth in this Section 5(b).

         (c)  Non-Solicitation of KM Employees.  Employee agrees and covenants
that prior to the earlier of (i) July 21, 2008 or (ii) for one (1) years
following the date of termination of Employee's membership on the Board for any
reason whatsoever, he will not hire, encourage, entice, or otherwise solicit any
employee of KM, or aid any third party to hire, encourage, entice or solicit any
employee of KM, to leave employment with KM in order to accept employment
elsewhere. For purposes of this paragraph, "employment elsewhere" shall include
any relationship of employer/employee, any relationship of principal/independent
contractor and any relationship of client/consultant.

         (d)  Non-Competition.  Employee agrees and covenants that prior to the
earlier of (i) July 21, 2008 or (ii) one (1) years following the date of
termination of Employee's membership on the Board for any reason whatsoever,
Employee will not, directly or indirectly, engage or become interested, as
employee, owner, consultant, advisor, officer, director or partner, or through
stock ownership, investment of capital, lending of money or property, or
rendering of services or otherwise, either alone or in association with others,
in any

                                       3

<PAGE>

type of business or enterprise which is in competition with or which is directly
or indirectly detrimental to KM's Business, provided, however, that the record
or beneficial ownership by Employee of one percent (1%) or less of the
outstanding publicly traded capital stock of any such business or enterprise
shall not be deemed to be in violation of this Paragraph 5(d), provided further
that Employee is not an employee, consultant, advisor, officer, director or
partner of such business or enterprise.

         (e)   Confidentiality of this Agreement.  KM and Employee agree not to
divulge, disclose or publicize in any manner to any third party, including
but not limited to current or former employees of KM, the existence or terms
and conditions of this Agreement, except, with respect to disclosure by
Employee: (1) insofar as is necessary to enforce the Agreement, comply with
this Agreement, applicable laws or regulations, or to respond to an order of
a court or administrative agency for disclosure, (2) to Employee's legal
counsel, spouse, or tax or financial advisors, on condition that any such
person to whom the terms or conditions of this Agreement are disclosed shall
be instructed not to disclose the terms or conditions to anyone else; and
with respect to disclosure by KM: (1) insofar as is necessary to enforce the
Agreement, comply with this Agreement, applicable laws or regulations, or to
respond to an order of a court or administrative agency for disclosure, (2)
to KM's legal counsel, KM's directors and officers, and KM's internal human
resources and accounting personnel and auditors (only to the extent necessary
for reporting purposes), on condition that any such person to whom the terms
or conditions of this Agreement are disclosed shall be instructed not to
disclose the terms or conditions to anyone else.

         (f)   Employee acknowledges and agrees that any breach by him of the
covenants, commitments and agreements in Paragraph 5 of this Agreement shall
constitute a material breach of this Agreement and is likely to result in
irreparable injury to KM that could not be compensated by money damages
alone.  Employee therefore agrees that, notwithstanding any other provision
of this Agreement, in addition to any other remedies KM may have at law
and/or equity, in the event that KM determines that Employee has breached any
of said provisions of this Agreement, KM shall be entitled, at its election,
to immediately stop making any payments hereunder and/or to terminate the
vesting of, or otherwise cancel or terminate, the unvested portion of the
restricted stock referenced in Section 4(c) hereof and/or to enforce the
specific performance of this Agreement by Employee and/or to seek to enjoin
Employee from activities in breach of said provisions of this Agreement
without having to show that there are no other adequate remedies available,
whether such breach of said provisions occurs during the Employment Period or
thereafter.  KM acknowledges and agrees that, without limiting the remedies
set forth above, its sole remedy with respect to monetary damages shall be
forfeiture of unvested restricted stock described in Section 4(c) hereof.

         (g)   The parties stipulate and agree that the terms, covenants,
commitments and agreements contained in this Paragraph 5 are fair and reasonable
in all respects, and that these restrictions are necessary for the reasonable
protection of the legitimate business interests of KM. If, at the time of
enforcement of any of these provisions, a court holds that the restrictions
stated herein are unreasonable under the circumstances then existing, the
parties hereto agree that the maximum period, scope or geographical area
reasonable under such circumstances will be substituted for the stated period,
scope or area. In such event, but only in such event, the parties hereto hereby
specifically request a trial court or other tribunal presented

                                       4
<PAGE>

with this Agreement for enforcement to reform it as to time, geographic area
or scope of activities prohibited to the fullest extent allowed by law and to
enforce this Agreement as so reformed.

         (h)   Employee shall have the right to request in a special exception
to Section 5 of this Agreement. Such request shall be in writing, directed to
KM's General Counsel, and shall clearly and specifically identify the exemption
sought and the bases therefore. KM shall have thirty (30) business days to
respond to such written request for a special exception. If, after a timely
review, KMI determines in its sole discretion that no significant issues exist
regarding the protection of its trade secrets, proprietary information and/or
Confidential Information, the preservation of its goodwill, or a conflict of
interest, KMI shall not withhold the granting in writing of said special
exception. In the event that KM does not respond to a request for a special
exception with the thirty day period described above, KM shall be deemed to have
granted the request for special exception. KMI's decision to grant a special
exception (or failure to respond to a response therefore) shall not be
considered to be a waiver of the provisions of Section 5 except as to the
specific activities on behalf of the specific entity for which Employee sought
such waiver.

      6.  Payment Conditions.  In the event that KM determines that Employee has
breached any of the provisions of Paragraph 5 of this Agreement, KM shall be
entitled to immediately stop making any payments of any type under Paragraph
4(c) of this Agreement and/or to terminate the vesting or exercisability of
23,333 shares of restricted stock reference in Section 5 hereof (to the extent
vesting has not occurred at the time of breach), or to require that Employee's
stock option grant of October 9, 1999 shall expire on the thirtieth day after KM
provides Employee notice of such breach.

      7.  Adequacy of Consideration.  By executing this Agreement, KM and
Employee acknowledges the receipt and sufficiency of the consideration provided
by the other in conjunction with executing this Agreement and the Further
Release. Each acknowledges and confirms to the other that the consideration
provided by the other is good and valuable consideration legally supportive of
each party's respective rights, duties and obligations hereunder and under the
Further Release. By executing this Agreement, KM and Employee shall be estopped
from raising and hereby expressly waive any defense regarding the receipt and/or
legal sufficiency of the consideration provided by one to the other with respect
to this Agreement and the Further Release.

      8.  Assignability.  This Agreement shall inure to the benefit of, and be
binding upon, Employee and Employee's personal or legal representatives,
employees, administrators, successors, heirs, distributees, devisees and
legatees, and KM, its successors and assignees, provided, however, that neither
KM nor Employee may assign any of Employee's or its obligations, rights or
benefits hereunder without the prior written consent of the other.

      9.  Headings.  The headings of sections and paragraphs herein are included
solely for convenience of reference and shall not control the meaning or
interpretation of any of the provisions of this Agreement.

                                       5

<PAGE>

      10.  Controlling Law.  This Agreement shall be governed and construed in
accordance with the laws of Texas.  The parties agree that any legal action
regarding this Agreement must be filed in the state of Texas.

      11. Entire Agreement.  This document constitutes the entire agreement of
the parties on the subject matters addressed herein and may not be expanded or
except by express written agreement executed by both.

      12. Counterparts.  This Agreement may be executed in as many counterparts
as may be deemed necessary and convenient, and by the different parties on
separate counterparts, each of which shall be deemed an original but all of
which shall constitute one and the same instrument.

     [Remainder of page intentionally left blank - signature page to follow]

                                       6
<PAGE>

       KMGP SERVICES, INC.
       KINDER MORGAN ENERGY PARTNERS, L.P.
       KINDER MORGAN, INC.
       KINDER MORGABN MANAGEMENT, LLC
       (each on its own behalf and on behalf of
       the other persons or entities included
       within the definition of KM)

       /s/ Joseph Listengart
       -------------------------------------
By:    Joseph Listengart
Title: Vice President and General Counsel

       EMPLOYEE

       /s/ Michael C. Morgan                           July 21, 2004
       --------------------------------------         ---------------------
       Michael C. Morgan                              Date

                                       7
<PAGE>

                                    Exhibit A

                                 FURTHER RELEASE

      For good and  valuable  consideration  set  forth in  Paragraph  3 of the
Retention  and  Non-Competition  Agreement of which this Exhibit is a part (the
"Agreement"),  the receipt  and  sufficiency  of which is hereby  acknowledged,
Michael  C.  Morgan  ("Morgan")  and KM (as  defined in the  Agreement)  hereby
agree as follows:

1.    General Release. Morgan, for himself and his representatives, heirs, and
assigns, hereby releases and forever discharges KM, and any present or former
parent, sister, affiliate or subsidiary company, partnership, limited
partnership or entity, and each of its and their shareholders, unit holders,
partners, general partners, limited partners, officers, directors, employees,
agents, representatives, legal representatives, accountants, successors,
predecessors, and assigns (the "KM Releasees"), from all claims, demands, and
actions of any nature, known or unknown, which Morgan may have against the KM
Releasees as of the Effective Date of this Further Release, and specifically,
but not limited to, any and all claims, known or unknown, in any manner
arising out of or involving any aspect of his employment with any of the KM
Releasees, and including, but not limited to, any rights or claims under the
Texas Anti-Discrimination Act, the Age Discrimination in Employment Act
("ADEA"); Title VII of the Civil Rights Act of 1964; the Vocational
Rehabilitation Act; the Americans with Disabilities Act; Executive Order
11246; the Civil Rights Act of 1871; the National Labor Relations Act; the
Worker Adjustment and Retraining Notification Act; the Employee Retirement
Income Security Act of 1974; the Equal Pay Act (all as may have been or may
be amended from time to time); and any and all other municipal, state, and/or
federal statutory, executive order, or constitutional provisions pertaining
to employment, an employment relationship, sexual harassment and/or employee
benefits; provided, however, that this release and waiver shall not apply to
any rights which, by law, may not be waived, or any rights expressly set
forth in the Agreement.  This release and waiver also specifically includes,
but is not limited to, any known or unknown claims in the nature of tort,
statutory law, common law or contract claims, including specifically but not
limited to any claim of wrongful refusal to hire, wrongful discharge,
retaliatory discharge, unpaid wages, unpaid vacation, unpaid bonuses,
unvested stock or stock options, unpaid benefits, intentional or negligent
infliction of emotional distress, defamation, or other such claims in any
manner arising out of or involving any aspect of Morgan's employment, the
terms and conditions of such employment, or termination of employment with
KM.  This release also includes, without limitation, any and all known or
unknown claims concerning attorney fees, costs, and any and all other
expenses related to the claims released herein.

2.    ADEA Release.  By executing this Further Release, Morgan knowingly and
voluntarily waives any and all claims under the Age Discrimination in
Employment Act ("ADEA"), and further agrees with respect to the ADEA that:

      (a)  This waiver is part of an Agreement that is written in a manner that
           he understands.

      (b)  This waiver specifically refers to rights and claims arising under
           the ADEA.

<PAGE>

      (c)  Morgan does not waive any claims under the ADEA that may arise after
           the date that he executes this Further Release.

      (d)  Morgan waives ADEA rights or claims.

      (e)  Morgan has had an opportunity to consult with an attorney before
           executing this Further Release insofar as it relates to waiver of
           claims under the ADEA and has been urged to do so.

      (f)  Morgan has been afforded a minimum of 21 days from the date he
           received the Further Release within which to consider this Further
           Release insofar as it relates to claims under the ADEA.

      (g)  Morgan shall have 7 days from the date he accepts and signs this
           Further Release within which to revoke his acceptance of this Further
           Release. To be effective, such revocation must be made in writing and
           delivered to the Executive Vice President Human Resources and
           Administration, Kinder Morgan, One Allen Center, 500 Dallas Suite
           1000, Houston TX 77002, on or before the seventh (7th) day after
           Morgan signs it. If Morgan revokes this Further Release it shall not
           be effective or enforceable and he shall not receive the additional
           consideration set forth in Paragraph 4 of the Retention and
           Non-Compete Agreement that has not yet been paid to Morgan.

      (h)  This Further Release shall become effective immediately upon the
           eighth (8th) day after Morgan signs this Further Release, assuming
           such Further Release is not revoked as provided in Paragraph 2(g)
           above.

Date:  July 21, 2004            /s/ Michael C. Morgan
       -------------------      ---------------------------------------
                                Michael C. Morgan

                                       2
<PAGE>

                                   SCHEDULE 1

Restricted  stock  granted on January  17,  2000 and January 16, 2001 shall not
be affected in any way by this agreement.

Stock Option  Agreements,  dated April 20, 2000, and October 9, 1999, shall not
be affected in any way by this agreement.

Restricted  Stock  Agreement,  dated July 16, 2003, shall be amended to provide
that 8,333 shares  shall vest on July 16, 2006 and 15,000  shares shall vest on
July  16,  2008.  All  other  shares   subject  to  that  agreement   shall  be
forfeited.   The  remaining  terms  and  conditions  of  the  Restricted  Stock
Agreement  shall  apply  with  respect  to  the  23,333  shares  that  are  not
forfeited in connection with this Agreement.

                                       3

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