Document:

KMP Exhibit 4.3 Common Unit Compensation Plan / Non-Employee Directors

Exhibit 4.3

KINDER MORGAN ENERGY PARTNERS, L.P.

COMMON UNIT COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS

(Effective as of January 18, 2005)

     1.    Purpose
of the Plan.  Kinder Morgan Energy Partners, L.P. (the
"Partnership"), as a limited partnership, has a general partner rather than a
board of directors. Through the operation of its limited partnership agreement and the
Delegation of Control Agreement among the Partnership, Kinder Morgan G.P., Inc. (the
"General Partner"), Kinder Morgan Management, LLC (the "Company") and
others, the board of directors of the Company (the "Board") functions as the
board of the Partnership. The Kinder Morgan Energy Partners, L.P. Common Unit Compensation
Plan for Non-Employee Directors (the "Plan") is intended to promote the
interests of the Partnership and its unitholders by aligning the compensation of the
non-employee members of the Board with unitholders' interests. Because the success of the
Company is dependent on its operation and management of the Partnership and its resulting
performance, the Plan is also expected to align the compensation of the non-employee
members of the Board with the interests of the Company's shareholders.

     2.    Compensation Committee.  The
Plan shall be administered by the Compensation Committee of the Board (the
"Committee"), which shall be constituted so as to permit the Plan to comply with
Rule 16b-3 promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Subject to the provisions
of the Plan, the Committee shall be authorized to interpret the Plan, to establish, amend
and rescind such rules and regulations as it deems necessary for the proper administration
of the Plan, and to make all other determinations necessary or advisable for its
administration. The Committee may correct any defect or supply any omission or reconcile
any inconsistency in the Plan in the manner and to the extent it shall deem desirable to
carry it into effect. The interpretation by the Committee of the Plan shall be conclusive
upon all participants.

     3.    Eligible
Participants.  Only directors of the Company who are not salaried employees
of the Company or of an affiliate of the Company (each, a "Non-Employee
Director") are eligible to participate in the Plan.

     4.    Units
Subject to the Plan.  The aggregate number of the Partnership's common units
representing limited partner interests ("Common Units") which may be issued
under the Plan shall not exceed 100,000, subject to adjustment as provided in Paragraph 7.
Common Units issued under the Plan shall be authorized and unissued Common Units. The
Partnership shall register with the Securities and Exchange Commission the issuance of the
Common Units subject to the Plan.

     5.    Awards.  The
compensation to be paid to Non-Employee Directors is fixed by the Board, generally
annually. That compensation is expected to include an annual retainer payable in cash. It
also may include other cash compensation ("Cash Compensation") that may be used
as provided in this Plan. In lieu of receiving such Cash Compensation in cash, a
Non-Employee Director may elect to receive such Cash Compensation in the form of Common
Units as provided herein. Such election shall be evidenced by an agreement (the
"Common Unit 

 

Compensation Agreement") between the Partnership and
such Non-Employee Director, which agreement shall contain the terms and conditions of such
award. Such election shall be made generally at or around the first Board meeting in
January of each calendar year and will be effective for the entire calendar year. A
Non-Employee Director shall make a new election each calendar year.

     6.    Number of Common Units to be Issued.  The
number of Common Units to be issued to a Non-Employee Director electing to receive his or
her Cash Compensation in the form of Common Units shall equal the Cash Compensation
awarded, divided by the closing price of the Common Units on the New York Stock Exchange
on the day the Cash Compensation is awarded (such price, the "Fair Market
Value"), rounded down to the nearest fifty (50) Common Units. The Common Units shall
be issuable as specified in the Common Unit Compensation Agreement. A Non-Employee
Director electing to receive his or her Cash Compensation in the form of Common Units
shall receive cash (the "Cash Payment") equal to the difference between (i) the
Cash Compensation awarded to such Non-Employee Director and (ii) the number of Common
Units to be issued to such Non-Employee Director multiplied by the Fair Market Value of a
Common Unit. For illustrative purposes only, if a Non-Employee Director elected to receive
an award of Cash Compensation of $100,000 in the form of Common Units, and the Fair Market
Value of the Common Units was $44.50, the Non-Employee Director would receive 2,200 Common
Units ($100,000/$44.50 = 2,247.19 Common Units, rounded down to the nearest 50 Common
Units) and a Cash Payment of $2,100 ($100,000 - (2,200 X $44.50)). The Cash Payment shall
be payable in four equal installments on the March 31, June 30, September 30 and December
31 of the calendar year in which such Cash Compensation is awarded.

     7.    Adjustment.  In
the event of a merger, reorganization, consolidation, recapitalization, separation,
liquidation, unit dividend, unit split or other change in the structure of the Partnership
affecting the Common Units, such adjustment shall be made in the number of Common Units
available under the Plan, as may be determined to be appropriate and equitable by the
Board, in its sole discretion, to prevent dilution or enlargement of rights.

     8.    Restrictions
on Resale.  Any Common Units acquired by a Non-Employee Director under this
Plan may only be sold pursuant to an effective registration statement or pursuant to an
exemption from the Securities Act of 1933, including sales pursuant to Rule 144
thereunder. The Committee may, in its sole discretion, impose additional restrictions on
disposition by the Non-Employee Director and an obligation of the Non-Employee Director to
forfeit and surrender the shares to the Partnership under certain circumstances
("Forfeiture Restrictions"). Such restrictions shall be set forth in the Common
Unit Compensation Agreement. The Partnership may place a legend on the certificates for
such Common Units evidencing these restrictions.

     9.    Change
in Control.  Upon the occurrence of a Change in Control (as defined below),
the Committee may take any action with respect to Common Units issued but still subject to
Forfeiture Restrictions that it deems appropriate, including but not limited to causing
such Forfeiture Restrictions to lapse; provided, however, that if a Change in Control
occurs and, in connection with or as a result of such Change in Control, Richard D. Kinder
no longer holds or does not continue to hold the office of Chairman of the Company, to the
extent any Common Units are subject to Forfeiture Restrictions, such Forfeiture
Restrictions shall lapse, and the 

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Partnership shall thereupon deliver or cause to be delivered to each
Non-Employee Director or legal representative the certificate or certificates for such
Common Units, free of any legend provided in Section 8. As used herein, the term
"Change in Control" shall mean the occurrence of any of the following events:

     (a)   any
"person," as such term is used in Section 13(d) and 14(d) of the Exchange Act
(other than Kinder Morgan, Inc., Kinder Morgan (Delaware), Inc., the General Partner or
any corporation or other entity owned, directly or indirectly, by Kinder Morgan, Inc.), is
or becomes the "beneficial owner" (as defined in Rule 13d-3 promulgated under
the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the voting
stock of the General Partner or of the voting shares of the Company;

     (b)   during
any period of two consecutive years (not including any period prior to the effective date
of the Plan), individuals who at the beginning of such period constitute the Board, and
any new director elected to the Board by the General Partner during such two year period,
cease for any reason other than normal retirement, death or disability to constitute at
least a majority of the Board;

     (c)   the
General Partner ceases to be the sole general partner of the Partnership or the Company
ceases to be the delegate of the General Partner under the Delegation of Control
Agreement; 

     (d)   the
unitholders of the Partnership approve a merger or consolidation of the Partnership with
any other person, other than a merger in which the Partnership is the surviving entity; or

     (e)   the
unitholders of the Partnership approve a plan of complete liquidation of the Partnership
or an agreement for the sale or disposition by the Partnership of all or substantially all
of the Partnership's assets (or any transaction having a similar effect).

     10.    Tax
Withholding.  To the extent required by applicable federal, state and local
law, a Non-Employee Director shall make arrangements satisfactory to the Partnership for
the payment of any withholding tax obligations that arise in connection with the Plan. The
Partnership shall not be required to issue any Common Units under the Plan until such
obligations are satisfied. 

     11.    Effective
Date and Term.  This Plan shall be effective on January 18, 2005. Unless
terminated sooner pursuant to Paragraph 13, this Plan shall terminate on December 31,
2014.

     12.    No
Right to Continue as a Director.  Nothing contained in the Plan or any
agreement hereunder will confer upon any participant in the Plan any right to continue to
serve as a director of the Company or any right to receive compensation other than as
fixed by the Board from time to time. 

     13.    No
Unitholder Rights Conferred.  Nothing contained in the Plan or any agreement
hereunder will confer upon any participant in the Plan any rights of a unitholder of the 

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Partnership unless and until a Common Unit is validly issued to such
participant in accordance with the terms hereof.

     14.    Termination,
Amendment and Modification of Plan.  The Board may at any time terminate or
suspend, and may at any time and from time to time and in any respect amend or modify, the
Plan; provided, however, that if any applicable law or regulation or the requirements of
any stock exchange on which the Common Units are listed or quoted requires that any such
amendment or modification must be approved by the Partnership's unitholders, the Board
shall not make any such modification or amendment without approval of the Partnership's
unitholders in such manner and to such degree as is required by the applicable law,
regulation or stock exchange requirement.

     15.    Governing
Law.  To the extent not preempted by any laws of the United States, the Plan
shall be construed, regulated, interpreted and administered according to the laws of the
State of Texas.

 

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     IN WITNESS WHEREOF, and as
conclusive evidence of the adoption of the foregoing, the Partnership has caused this Plan
to be duly executed as of this ___ day of January, 2005.

	  	KINDER MORGAN ENERGY PARTNERS, L.P.

	  		
	  	By:	Kinder Morgan G.P., Inc.,

    its general partner

	  			
	  	  	By:	Kinder Morgan Management, LLC,

    its delegate

	  			

      	
	  	  	  	By:	  
	  	  	  	  	Name:	  
	  	  	  	  	Title:	  

  

  -5-KMP Non-Employee Director Common Unit Compensation Agreement

Exhibit 4.4

KINDER MORGAN ENERGY PARTNERS, L.P.

NON-EMPLOYEE DIRECTOR

COMMON UNIT COMPENSATION AGREEMENT

Common Unit Compensation Agreement made effective the ____ day of
___________, ______, between Kinder Morgan Energy Partners, L.P., a Delaware limited
partnership (the "Partnership"), and _______________________ ("Director").

	1.	Award. The Partnership has
    made an award of Cash Compensation (as defined below) which Director is electing to
    receive in the form of the Partnership's common units representing limited partnership
    interests ("Common Units"), subject to the terms and conditions contained herein
    and in the Plan (as defined below).

	  		
		(a)
	Cash Compensation. As
    contemplated by the Kinder Morgan Energy Partners, L.P. Common Unit Compensation Plan for
    Non-Employee Directors (the "Plan"), $________ of cash compensation which
    Director may elect to receive in the form of Common Units (the "Cash
    Compensation") has been awarded to Director for the ______ calendar year.

	  		
		(b)
	Election to Receive Common Units in
    Lieu of Cash. In accordance with the terms of the Plan, Director hereby elects to
    receive the Cash Compensation in the form of the Partnership's common units representing
    limited partnership interests ("Common Units"). Director shall receive ________
    Common Units and $_________ in cash (the "Cash Payment"), as calculated in
    accordance with the terms of the Plan. The Common Units shall be issued upon acceptance
    hereof by Director and certificates therefor will be delivered to Director upon
    satisfaction of the conditions of this Agreement. The Cash Payment shall be paid in
    installments of $_____ each on March 31, June 30, September 30 and December 31 of 20__.

	  		
	  	(c)
	Plan Incorporated. Director
    acknowledges receipt of a copy of the Plan and agrees that the election to receive such
    Cash Compensation in the form of Common Units shall be subject to all of the terms and
    conditions set forth in the Plan, including future amendments thereto, if any, pursuant to
    the terms thereof, which Plan is incorporated herein by reference as a part of this
    Agreement.

	  	
	2.	Common Units. Director
    hereby accepts the Common Units when issued and agrees with respect thereto as follows:

	  		
	  	(a)
	Forfeiture Restrictions. To
    the extent then subject to the Forfeiture Restrictions (as hereinafter defined), the
    Common Units issued hereunder may not be sold, assigned, transferred, exchanged, pledged,
    hypothecated or encumbered by Director, and no such sale, assignment, transfer, exchange,
    pledge, hypothecation or encumbrance, whether made or created by voluntary act of Director
    or any agent of Director or by operation of law, shall be recognized by, or be binding
    upon, or shall in any manner affect the rights of, the Partnership or any agent or any
    custodian holding certificates for the Common Units. In the event that Director's service
    as a director of Kinder Morgan Management,

  

	  		
	  	  
	LLC (the "Company"), as the
    delegate of the general partner of the Partnership, is terminated prior to the lapse of
    the Forfeiture Restrictions as provided in (b) below (i) by the Company for Cause, or (ii)
    by voluntary resignation, Director shall, for no consideration, forfeit to the Partnership
    all Common Units to the extent then subject to the Forfeiture Restrictions. The
    prohibition against transfer and the obligation to forfeit and surrender Common Units to
    the Partnership upon such termination of service as a director are herein referred to as
    "Forfeiture Restrictions."

      

    For purposes of this Agreement, "Cause" is defined as:

	  			
			(1)
	an act by Director of willful
    misrepresentation, fraud or willful dishonesty intended to result in substantial personal
    enrichment at the expense of the Partnership or the Company;

			(2)
	Director's willful misconduct with regard
    to the Partnership or the Company that is intended to have a material adverse impact on
    the Partnership or the Company;

			(3)
	Director's material, willful and knowing
    violation of Partnership or Company guidelines or policies or Director's fiduciary duties
    which has or is intended to have a material adverse impact on the Partnership or the
    Company;

			(4)
	Director's willful or reckless behavior in
    the performance of his or her duties which has a material adverse impact on the
    Partnership;

			(5)
	Director's willful failure to perform his
    or her duties;

			(6)
	Director's conviction of, or pleading nolo
    contendere or guilty to, a felony; or

	  	  
	(7)
	any other willful material breach by
    Director of his or her obligations to the Partnership or the Company that is not cured
    within 20 days of receipt of written notice from the Partnership or the Company, as the
    case may be.

	  		
	  	(b)
	Lapse of Forfeiture Restrictions.
    The Forfeiture Restrictions shall lapse and cease to apply to the Common Units on
    _________, 20__.

    Upon the occurrence of a Change in Control (as defined in the Plan),
    the Committee may take any action with respect to the Common Units that it deems
    appropriate, including but not limited to causing the Forfeiture Restrictions to lapse;
    provided, however, that if a Change in Control occurs and, in connection with or as a
    result of such Change in Control, Richard D. Kinder no longer holds or does not continue
    to hold the office of Chairman of the Company, the Forfeiture Restrictions shall lapse. If
    Director's service as a director of the Company is terminated for any reason (including
    death, disability, or Director's failure to be elected as a director at a shareholders
    meeting at which Director is considered for election) other than (i) by the Company for
    Cause, or (ii) by voluntary resignation, to the extent the Common Units are subject to
    Forfeiture Restrictions on the date of such termination, such Forfeiture Restrictions
    shall lapse.

    Common Units with respect to which Forfeiture Restrictions have lapsed
    shall cease to be subject to any Forfeiture Restrictions, and the Partnership, pending
    payment of corresponding taxes, shall provide Director a certificate (without the legend
    referenced 

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	in Section 2(c)) below representing the
    units as to which the Forfeiture Restrictions have lapsed.

    If the service of Director as a director of the Company shall terminate
    prior to the lapse of the Forfeiture Restrictions, and there exists a dispute between
    Director and the Company or the Committee (as defined in the Plan) as to the satisfaction
    of the conditions to the lapse of the Forfeiture Restrictions or the terms and conditions
    of this Agreement, the Common Units shall remain subject to the Forfeiture Restrictions
    until the resolution of such dispute, except that any distributions that may be payable to
    the holders of record of Common Units as of a date during the period from termination of
    Director's service as a director to the resolution of such dispute shall:

	  			
	  	  
	  
	     (1)   to the extent to which such distributions
    would have been payable to Director on the Common Units, be held by the Partnership as
    part of its general funds, and shall be paid to or for the account of Director only upon,
    and in the event of, a resolution of such dispute in a manner favorable to Director, and
    then only with respect to such of the Common Units as to which such resolution shall be so
    favorable, and

         (2)   be retained by the Partnership in the event of
    a resolution of such dispute in a manner unfavorable to Director only with respect to such
    of the Common Units as to which such resolution shall be so unfavorable.

	  		
	  	(c)
	Rights as a Unitholder.
    Unless otherwise provided in this Agreement, Director shall have the right to receive
    distributions with respect to the Common Units awarded hereby, to vote such Common Units
    and to enjoy all other unitholder rights.

	  		  

		(d)
	Certificates. One or more
    certificates evidencing the Common Units shall be issued by the Partnership in Director's
    name, or at the option of the Partnership, in the name of a nominee of the Partnership,
    pursuant to which Director shall have voting rights and shall be entitled to receive all
    distributions unless and until the Common Units are forfeited pursuant to the provisions
    of this Agreement. Each certificate shall bear the following legend:

	  	  	  	  
	  	  
	  
	THIS CERTIFICATE AND THE COMMON UNITS
    REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE AND
    RESTRICTIONS AGAINST TRANSFER) CONTAINED IN THE KINDER MORGAN ENERGY PARTNERS, L.P. COMMON
    UNIT COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS AND AN AGREEMENT ENTERED INTO BETWEEN
    THE REGISTERED OWNER AND KINDER MORGAN ENERGY PARTNERS, L.P. A RELEASE FROM SUCH TERMS AND
    CONDITIONS SHALL BE OBTAINED ONLY IN ACCORDANCE WITH THE PROVISIONS OF SUCH PLAN AND
    AGREEMENT, A COPY OF EACH OF WHICH IS ON FILE IN THE 

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	OFFICE OF THE SECRETARY OF KINDER MORGAN
    MANAGEMENT, LLC.

	  		
			Until the Forfeiture Restrictions have
    lapsed, (i) Director shall not be entitled to delivery of the unit certificate, (ii) the
    Partnership shall retain custody of the unit certificate, and (iii) Director may not sell,
    transfer, pledge, exchange, hypothecate or otherwise dispose of the Common Units. A breach
    by Director of the terms and conditions of this Agreement shall cause a forfeiture of the
    Common Units by Director. Upon request of the Committee, Director shall deliver to the
    Partnership a stock power, endorsed in blank, relating to the Common Units then subject to
    the Forfeiture Restrictions. Upon the lapse of the Forfeiture Restrictions without
    forfeiture, the Partnership shall deliver to Director a certificate without legend
    evidencing the vested Common Units with respect to which Forfeiture Restrictions have
    lapsed, and shall retain a certificate representing unvested Common Units still subject to
    Forfeiture Restrictions. Notwithstanding any other provisions of this Agreement, the
    issuance or delivery of any Common Units (whether subject to restrictions or unrestricted)
    may be postponed for such period as may be required to comply with applicable requirements
    of any national securities exchange or any requirements of any law or regulation
    applicable to the issuance or delivery of such units. The Partnership shall not be
    obligated to issue or deliver any Common Units if the issuance or delivery thereof shall
    constitute a violation of any provision of any law or of any regulation of any
    governmental authority or any national securities exchange.

	  	
	3.	Status of Common Units.
    Director agrees that, notwithstanding anything to the contrary herein, the Common
    Units may not be sold, transferred, pledged, exchanged, hypothecated or otherwise disposed
    of in any manner that would constitute a violation of any applicable federal or state
    securities laws. Director also agrees that (i) certificates shall bear the legend or
    legends as the Committee deems appropriate in order to assure compliance with applicable
    securities laws, (ii) the Partnership may refuse to register the transfer of the Common
    Units on the transfer records of the Partnership if such proposed transfer would in the
    opinion of counsel satisfactory to the Partnership constitute a violation of any
    applicable securities law, and (iii) the Partnership may give related instructions to its
    transfer agent, if any, to stop registration of the transfer of the Common Units.

	  	
	4.	Changes in Capital Structure.
    If the outstanding Common Units or other securities of the Partnership, or both, shall at
    any time be changed or exchanged by declaration of a unit dividend, unit split,
    combination of units, or recapitalization, the number and kind of Common Units shall be
    appropriately and equitably adjusted in accordance with the terms of the Plan.

	  	
	5.	Status as Director. For
    purposes of this Agreement, Director shall be considered to be in service as a director of
    the Company as long as Director remains a director of the Company or any successor limited
    liability company or other legal entity that is the delegate of the general partner of the
    Partnership. Any question as to whether and when there has been a termination of such
    service, and the cause of such termination, shall be determined by the Committee in its
    sole discretion, and its determination shall be final.

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	6.	Committee's Powers. No
    provision contained in this Agreement shall in any way terminate, modify or alter, or be
    construed or interpreted as terminating, modifying or altering, any of the powers, rights
    or authority vested in the Committee pursuant to the terms of the Plan, including, without
    limitation, the Committee's rights to make certain determinations and elections with
    respect to the Common Units.

	  	
	7.	Binding Effect. The
    provisions of the Plan and the terms and conditions of this Agreement shall, in accordance
    with their terms, be binding upon, and inure to the benefit of, all successors of
    Director, including, without limitation, Director's estate and the executors,
    administrators, or trustees thereof, heirs and legatees, and any receiver, trustee in
    bankruptcy, or representative of creditors of Director. This Agreement shall be binding
    upon and inure to the benefit of any successors to the Partnership.

	  	
	8.	Agreement Subject to Plan.
    This Agreement is subject to the Plan. The terms and provisions of the Plan (including any
    subsequent amendments thereto) are hereby incorporated herein by reference thereto. In the
    event of a conflict between any term or provision contained herein and a term or provision
    of the Plan, the applicable terms and provisions of the Plan will govern and prevail. All
    definitions of words and terms contained in the Plan shall be applicable to this
    Agreement.

	  	
	9.	Governing Law. To the extent
    not preempted by any laws of the United States, the Plan shall be construed, regulated,
    interpreted and administered according to the laws of the State of Texas.

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IN WITNESS WHEREOF, the Partnership has caused this Agreement to be
duly executed by an officer thereunto duly authorized, and Director has executed this
Agreement, all effective as of the date of first above written.

	  	KINDER MORGAN ENERGY PARTNERS, L.P.

  

	  	By:	Kinder Morgan G.P., Inc.,

    its general partner

	  			
	  	  	By:	Kinder Morgan Management, LLC,

    its delegate

	  			  

      	
	  	  	  	By:	  
	  	  	  	  	Name:	  
	  	  	  	  	Title:	  

  

	  	DIRECTOR

      

	  	Name:	  

	  	Social Security Number:	  

 

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