Document:

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                                                                     EXHIBIT 4.5
                                                                  Conformed Copy

                       KINDER MORGAN ENERGY PARTNERS, L.P.
                    $125,000,000 7.30% SENIOR NOTES DUE 2033

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                          REGISTRATION RIGHTS AGREEMENT

                                                                 August 23, 2002

J.P. Morgan Securities Inc.
270 Park Avenue
New York, New York  10017

Ladies and Gentlemen:

         Kinder Morgan Energy Partners, L.P., a Delaware limited partnership
(the "Partnership"), proposes to issue and sell to you (the "Purchaser") upon
the terms and subject to the conditions set forth in the Purchase Agreement (as
defined herein) an aggregate of $125,000,000 principal amount of the
Partnership's 7.30% Senior Notes due 2033 issued on the date hereof (the
"Securities"), which shall constitute an additional issuance to, form a single
series with, and have the same CUSIP number and the same terms as, the aggregate
$375,000,000 million principal amount of 7.30% Senior Notes due 2033 issued by
the Partnership on August 19, 2002. As an inducement to the Purchaser to enter
into the Purchase Agreement and in satisfaction of a condition to the
obligations of the Purchaser thereunder, the Partnership agrees with the
Purchaser for the benefit of holders (as defined herein) from time to time of
the Registrable Securities (as defined herein) as follows:

Section 1. Certain Definitions

         For purposes of this Registration Rights Agreement, the following terms
shall have the following respective meanings:

         "broker-dealer" shall mean any broker or dealer registered with the
Commission under the Exchange Act.

         "Business Day" shall mean each Monday, Tuesday, Wednesday, Thursday and
Friday that is not a day on which banking institutions in The City of New York
are authorized or obligated by law, executive order or regulation to close.

         "Closing Date" shall mean the date on which the 7.30% Senior Notes due
2033 were initially issued, which was August 19, 2002.

         "Commission" shall mean the United States Securities and Exchange
Commission, or any other federal agency at the time administering the Exchange
Act or the Securities Act, whichever is the relevant statute for the particular
purpose.

         "Effective Time", in the case of (i) an Exchange Registration, shall
mean the time and date as of which the Commission declares the Exchange
Registration Statement effective or as of

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which the Exchange Registration Statement otherwise becomes effective and (ii) a
Shelf Registration, shall mean the time and date as of which the Commission
declares the Shelf Registration Statement effective or as of which the Shelf
Registration Statement otherwise becomes effective.

         "Electing Holder" shall mean any holder of Registrable Securities that
has returned a completed and signed Notice and Questionnaire to the Partnership
in accordance with Section 3(c)(ii) or 3(c)(iii) hereof.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, or any
successor statute thereto, in each case as amended from time to time.

         "Exchange Offer" shall have the meaning assigned thereto in
Section 2(a) hereof.

         "Exchange Registration" shall have the meaning assigned thereto in
Section 3(b) hereof.

         "Exchange Registration Statement" shall have the meaning assigned
thereto in Section 2(a) hereof.

         "Exchange Securities" shall have the meaning assigned thereto in
Section 2(a) hereof.

         "holder" shall mean the Purchaser and each other person who acquires
Registrable Securities from time to time (including any successors or assigns),
in each case for so long as such person owns any Registrable Securities.

         "Indenture" shall mean the Indenture, dated as of August 19, 2002,
between the Partnership and Wachovia Bank, National Association, as Trustee, as
amended by the First Supplemental Indenture thereto, dated as of August 23,
2002, as the same shall be further amended from time to time.

         "Liquidated Damages" shall have the meaning assigned thereto in
Section 2(c) hereof.

         "Liquidated Damages Event" shall have the meaning assigned thereto in
Section 2(c) hereof.

         "NASD" shall mean the National Association of Securities Dealers, Inc.

         "Notice and Questionnaire" means a Notice of Registration Statement and
Selling Securityholder Questionnaire substantially in the form of Exhibit A
hereto.

         "Partnership" shall mean Kinder Morgan Energy Partners, L.P., a
Delaware limited partnership.

         "person" shall mean any individual, corporation, partnership (whether
general or limited), joint venture, limited liability company, association,
joint stock company, trust, other entity, unincorporated organization or
government or any agency or political subdivision thereof or governmental
agency.

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         "Purchase Agreement" shall mean the Purchase Agreement, dated as of
August 20, 2002, between the Partnership and the Purchaser, as the same shall be
amended from time to time.

         "Purchaser" shall mean J.P. Morgan Securities Inc.

         "Registrable Securities" shall mean each of the Securities; provided,
however, that such Security shall cease to be a Registrable Security when (i) in
the circumstances contemplated by Section 2(a) hereof, the Security has been
exchanged for an Exchange Security in the Exchange Offer as contemplated in
Section 2(a) hereof (provided, that any Exchange Security that, pursuant to the
last two sentences of Section 2(a) hereof, is included in a prospectus for use
in connection with resales by broker-dealers shall be deemed to be a Registrable
Security until resale of such Registrable Security has been effected within the
120-day period referred to in Section 2(a) hereof); (ii) in the circumstances
contemplated by Section 2(b) hereof, a Shelf Registration Statement registering
such Security under the Securities Act has been declared or becomes effective
and such Security has been sold or otherwise transferred by the holder thereof
pursuant to and in a manner contemplated by such effective Shelf Registration
Statement; (iii) such Security is sold pursuant to Rule 144 under circumstances
in which any legend borne by such Security relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed by
the Partnership or pursuant to the Indenture; (iv) such Security is eligible to
be sold pursuant to paragraph (k) of Rule 144 (or any similar provision then in
effect); or (v) such Security shall cease to be outstanding.

         "Registration Expenses" shall have the meaning assigned thereto in
Section 4 hereof.

         "Resale Period" shall have the meaning assigned thereto in Section 2(a)
hereof.

         "Restricted Holder" shall mean (i) a holder that is an affiliate of the
Partnership within the meaning of Rule 405 (as defined herein), (ii) a holder
who acquires Exchange Securities outside the ordinary course of such holder's
business, (iii) a holder who has arrangements or understandings with any person
to participate in the Exchange Offer for the purpose of distributing Exchange
Securities and (iv) a holder that is a broker-dealer, but only with respect to
Exchange Securities received by such broker-dealer pursuant to the Exchange
Offer in exchange for Registrable Securities acquired by the broker-dealer
directly from the Partnership.

         "Rule 144(k) Holding Period" shall have the meaning assigned thereto in
Section 2(b) hereof.

         "Rule 144", "Rule 405" and "Rule 415" shall mean, in each case, such
rule promulgated under the Securities Act (or any successor provision), as the
same shall be amended from time to time.

         "Securities Act" shall mean the Securities Act of 1933, or any
successor statute thereto, as the same shall be amended from time to time.

         "Shelf Registration" shall have the meaning assigned thereto in
Section 2(b) hereof.

         "Shelf Registration Statement" shall have the meaning assigned thereto
in Section 2(b) hereof.

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         "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, or
any successor statute thereto, and the rules, regulations and forms promulgated
thereunder, all as the same shall be amended from time to time.

         Unless the context otherwise requires, any reference herein to a
"Section" or "clause" refers to a Section or clause, as the case may be, of this
Registration Rights Agreement, and the words "herein", "hereof" and "hereunder"
and other words of similar import refer to this Registration Rights Agreement as
a whole and not to any particular Section or other subdivision.

Section 2. Registration Under the Securities Act

         (a) Except as set forth in Section 2(b) below, the Partnership agrees
to use its reasonable efforts to file under the Securities Act, as soon as
practicable, but no later than 120 days after the Closing Date, a single
registration statement relating to an offer to exchange (such registration
statement, the "Exchange Registration Statement" and, such offer, an "Exchange
Offer") any and all of the Securities for a like aggregate principal amount of
debt securities issued by the Partnership, which debt securities will be
substantially identical to such Securities tendered by the holders (and will be
entitled to the benefits of a trust indenture that will be substantially
identical to the Indenture or is the Indenture and that will be qualified under
the Trust Indenture Act), except that such new debt securities will have been
registered pursuant to an effective registration statement under the Securities
Act, will not be subject to transfer restrictions or registration rights and
will not be entitled to the benefit of provisions for the Liquidated Damages
contemplated in Section 2(c) below (such new debt securities hereinafter called
"Exchange Securities"). The Partnership agrees to use its reasonable efforts to
cause the Exchange Registration Statement to become effective under the
Securities Act as soon as practicable, but no later than 210 days after the
Closing Date. The Exchange Offer will be registered under the Securities Act on
the appropriate form and will comply with all applicable tender offer rules and
regulations under the Exchange Act. The Partnership further agrees to use its
reasonable efforts to commence and complete the Exchange Offer promptly, but no
later than 45 Business Days after the date on which such Exchange Registration
Statement has become effective, to hold the Exchange Offer open for at least 30
days and to exchange the Exchange Securities of for all Registrable Securities
that have been properly tendered and not withdrawn on or prior to the expiration
of the Exchange Offer. The Exchange Offer shall be deemed to have been completed
upon the earlier to occur of (i) the Partnership having exchanged Exchange
Securities for all outstanding Registrable Securities that are properly tendered
and not withdrawn pursuant to the Exchange Offer and (ii) the Partnership having
exchanged, pursuant to the Exchange Offer, Exchange Securities for all
Registrable Securities that have been properly tendered and not withdrawn before
the expiration of the Exchange Offer, which shall be on a date that is at least
30 days following the commencement of the Exchange Offer. The Partnership agrees
(x) to include in the Exchange Registration Statement a prospectus for use in
any resales by any holder of Exchange Securities that is a broker-dealer and (y)
to keep such Exchange Registration Statement effective for a period (the "Resale
Period") beginning when Exchange Securities are first issued in the Exchange
Offer and ending upon the earlier of the expiration of the 120th day after the
Exchange Offer has been completed or such time as such broker-dealers no longer
own any Registrable Securities. With respect to such Exchange Registration
Statement, such holders shall have the benefit of the rights of indemnification
and contribution set forth in Sections 5(a), (c), (d) and (e) hereof.

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         (b) If (i) the Partnership determines that the Exchange Registration
Statement is not available or the Exchange Offer may not be consummated because
it would violate applicable law or the applicable interpretations of the staff
of the Commission, (ii) the Exchange Offer has not been completed within 210
days plus 45 Business Days following the Closing Date or (iii) in the opinion of
counsel for the Purchaser, under applicable law or the applicable
interpretations of the staff of the Commission, the Purchaser is not entitled to
tender Securities in the Exchange Offer or must comply with the registration and
prospectus delivery requirements of the Securities Act in connection with any
offering or sale of Registrable Securities, the Partnership shall, in lieu of
conducting the Exchange Offer contemplated by Section 2(a) hereof, use its
reasonable efforts to file under the Securities Act, as soon as practicable
after the time such obligation to file arises, a "shelf" registration statement
providing for the registration of, and the sale on a continuous or delayed basis
by the holders of, all of the Registrable Securities, pursuant to Rule 415 or
any similar rule that may be adopted by the Commission (such filing, the "Shelf
Registration" and, such registration statement, the "Shelf Registration
Statement"). The Partnership agrees to use its reasonable efforts to cause the
Shelf Registration Statement to become or be declared effective and to keep such
Shelf Registration Statement continuously effective for a period ending on the
earlier of the second anniversary of August 23, 2002 or, if Rule 144(k) is
amended to provide a shorter restrictive period, such shorter period (the "Rule
144(k) Holding Period") or such time as there are no longer any Registrable
Securities outstanding; provided, however, that no holder shall be entitled to
be named as a selling securityholder in the Shelf Registration Statement or to
use the prospectus forming a part thereof for resales of Registrable Securities
unless such holder is an Electing Holder, and furnishes to the Partnership in
writing, within 20 days after receipt of a request therefor, such information
with respect to such Electing Holder required under Regulation S-K under the Act
as the Partnership may reasonably request for use in connection with any Shelf
Registration Statement or Prospectus or preliminary prospectus included therein.
No Electing Holder shall be entitled to Liquidated Damages pursuant to Section
2(c) hereof unless and until such Electing Holder shall have used its reasonable
efforts to provide all such reasonably requested information. Each Electing
Holder as to which any Shelf Registration Statement is being effected agrees to
furnish promptly to the Partnership all information required to be disclosed in
order to make the information previously furnished to the Partnership by such
Electing Holder not materially misleading. The Partnership further agrees to
supplement or make amendments to the Shelf Registration Statement, as and when
required by the rules, regulations or instructions applicable to the
registration form used by the Partnership for such Shelf Registration Statement
or by the Securities Act or rules and regulations thereunder for shelf
registration, and the Partnership agrees to furnish to each Electing Holder
copies of any such supplement or amendment promptly after its being used
following its filing with the Commission.

         (c) The Partnership agrees to pay liquidated damages (the "Liquidated
Damages") upon the occurrence of any of the following events (each such event, a
"Liquidated Damages Event"):

                  (i) if the Exchange Registration Statement or Shelf
         Registration Statement is not filed within 120 days following the
         Closing Date, then commencing on the 121st day after the Closing Date,
         Liquidated Damages shall accrue on the Securities over and above the
         otherwise applicable interest rate at a rate of 0.25% per year; or

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                  (ii) if an Exchange Registration Statement or Shelf
         Registration Statement is filed and is not declared effective within
         210 days following the Closing Date, then commencing on the 211th day
         after the Closing Date, Liquidated Damages shall accrue on the
         Securities over and above the otherwise applicable interest rate at a
         rate of 0.25% per year; or

                  (iii) if either (A) the Partnership has not exchanged Exchange
         Securities for all Securities validly tendered in accordance with the
         terms of the Exchange Offer on or prior to 45 Business Days after the
         date on which the Exchange Registration Statement was declared
         effective, or (B) the Shelf Registration Statement has been declared
         effective, but such Shelf Registration Statement ceases to be effective
         at any time (I) prior to the expiration of the Rule 144(k) Holding
         Period and (II) while Registrable Securities are outstanding, then
         Liquidated Damages shall accrue on the Securities over and above the
         otherwise applicable interest rate at a rate of 0.25% per year
         commencing on the (x) 46th Business Day after such effective date, in
         the case of (A) above, or (y) the day the Shelf Registration Statement
         ceases to be effective, in the case of (B) above;

provided, however, that the circumstances under which the Partnership may be
required to pay Liquidated Damages are not cumulative and the rate at which
Liquidated Damages accrues on the Securities shall never exceed 0.25% per year;
and, provided further, that Liquidated Damages on the Securities shall cease to
accrue upon the earlier of (i) when all Liquidated Damages Events have been
cured or (ii) upon the expiration of the Rule 144(k) Holding Period. For
purposes of clarifying the foregoing provisions, Liquidated Damages shall not
accrue at any time that there are no Registrable Securities outstanding.

         All accrued Liquidated Damages shall be payable, in the manner provided
for the payment of interest in the Indenture and the Securities, on each
applicable Interest Payment Date (as defined in the Indenture).

         (d) The Partnership shall take all actions reasonably necessary to be
taken by it to ensure that the transactions contemplated herein are effected as
so contemplated.

         (e) Any reference herein to a registration statement as of any time
shall be deemed to include any document incorporated, or deemed to be
incorporated, therein by reference as of such time and any reference herein to
any post-effective amendment to a registration statement as of any time shall be
deemed to include any document incorporated, or deemed to be incorporated,
therein by reference as of such time.

Section 3. Registration Procedures

         If the Partnership files a registration statement pursuant to Section
2(a) or Section 2(b) hereof, the following provisions shall apply:

         (a) At or before the Effective Time of the Exchange Registration or the
Shelf Registration, as the case may be, the Partnership shall qualify the
Indenture under the Trust Indenture Act.

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         (b) In connection with the Partnership's obligations with respect to
the registration of Exchange Securities as contemplated by Section 2(a) hereof
(the "Exchange Registration"), if applicable, the Partnership shall, as soon as
practicable (or as otherwise specified):

                  (i) use its reasonable efforts to prepare and file with the
         Commission, as soon as practicable, but no later than 120 days after
         the Closing Date, an Exchange Registration Statement on any form that
         may be utilized by the Partnership and that shall permit the Exchange
         Offer and resales of Exchange Securities by broker-dealers during the
         Resale Period to be effected as contemplated by Section 2(a) hereof,
         and use its reasonable efforts to cause such Exchange Registration
         Statement to become effective as soon as practicable thereafter, but no
         later than 210 days following the Closing Date;

                  (ii) as soon as practicable prepare and file with the
         Commission such amendments and supplements to such Exchange
         Registration Statement and the prospectus included therein as may be
         necessary to effect and maintain the effectiveness of such Exchange
         Registration Statement for the periods and purposes contemplated in
         Section 2(a) hereof and as may be required by the applicable rules and
         regulations of the Commission and the instructions applicable to the
         form of such Exchange Registration Statement, and promptly provide each
         broker-dealer holding Exchange Securities with such number of copies of
         the prospectus included therein (as then amended or supplemented), in
         conformity in all material respects with the requirements of the
         Securities Act and the Trust Indenture Act and the rules and
         regulations of the Commission thereunder, as such broker-dealer
         reasonably may request prior to the expiration of the Resale Period,
         for use in connection with resales of Exchange Securities;

                  (iii) promptly notify each broker-dealer that has requested or
         received copies of the prospectus included in such registration
         statement and, if requested by such broker-dealer, confirm such advice
         in writing, (A) when such Exchange Registration Statement or the
         prospectus included therein or any prospectus amendment or supplement
         or post-effective amendment has been filed, and, with respect to such
         Exchange Registration Statement or any post-effective amendment, when
         the same has become effective, (B) of any request by the Commission for
         amendments or supplements to such Exchange Registration Statement or
         prospectus or for additional information, (C) of the issuance by the
         Commission of any stop order suspending the effectiveness of such
         Exchange Registration Statement or the initiation or threatening of any
         proceedings for that purpose, (D) of the receipt by the Partnership of
         any notification with respect to the suspension of the qualification of
         the Exchange Securities for sale in any jurisdiction or the initiation
         or threatening of any proceeding for such purpose, or (E) if at any
         time during the Resale Period when a prospectus is required to be
         delivered under the Securities Act, that such Exchange Registration
         Statement, prospectus, prospectus amendment or supplement or
         post-effective amendment does not conform in all material respects to
         the applicable requirements of the Securities Act and the Trust
         Indenture Act and the rules and regulations of the Commission
         thereunder or contains an untrue statement of a material fact or omits
         to state any material fact required to be stated therein or necessary
         to make the statements therein not misleading in light of the
         circumstances then existing;

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                  (iv) in the event that the Partnership would be required,
         pursuant to Section 3(b)(iii)(E) above, to notify any broker-dealers
         holding Exchange Securities, it will use its reasonable efforts to
         prepare and furnish to each such holder a reasonable number of copies
         of a prospectus supplemented or amended so that, as thereafter
         delivered to purchasers of such Exchange Securities during the Resale
         Period, such prospectus shall conform in all material respects to the
         applicable requirements of the Securities Act and the Trust Indenture
         Act and the rules and regulations of the Commission thereunder and
         shall not contain an untrue statement of a material fact or omit to
         state a material fact required to be stated therein or necessary to
         make the statements therein not misleading in light of the
         circumstances then existing. Each broker-dealer agrees that upon
         receipt of any notice from the Partnership pursuant to Section
         3(b)(iii)(E) hereof, such broker-dealer shall forthwith discontinue the
         disposition of Exchange Securities pursuant to the Exchange
         Registration Statement until such broker-dealer shall have received
         copies of such amended or supplemented prospectus and, if so directed
         by the Partnership, such broker-dealer shall deliver to the Partnership
         (at the Partnership's expense) all copies of the prospectus covering
         such Exchange Securities then in such broker-dealers' possession for
         the purpose of making offers of Exchange Securities;

                  (v) use its reasonable efforts to obtain the withdrawal of any
         order suspending the effectiveness of such Exchange Registration
         Statement or any post-effective amendment thereto at the earliest
         practicable date;

                  (vi) use its reasonable efforts to (A) register or qualify the
         Exchange Securities under the securities laws or blue sky laws of such
         jurisdictions as any holder of Exchange Securities shall reasonably
         request in writing no later than the commencement of the Exchange
         Offer, (B) keep such registrations or qualifications in effect and
         comply with such laws so as to permit the continuance of offers, sales
         and dealings therein in such jurisdictions until the expiration of the
         Resale Period and (C) take any and all other actions as may be
         reasonably necessary to enable each broker-dealer holding Exchange
         Securities to consummate the disposition thereof in such jurisdictions
         under the securities laws or blue sky laws of such jurisdictions;
         provided, however, that the Partnership shall not be required for any
         such purpose to (1) qualify as a foreign partnership or as a dealer in
         securities in any jurisdiction wherein it would not otherwise be
         required to qualify but for the requirements of this Agreement, (2)
         consent to general service of process in any such jurisdiction or
         subject itself to taxation in any such jurisdiction if it is not
         already so subject or (3) make any changes to its certificate of
         limited partnership or its agreement of limited partnership or any
         agreement between it and its unitholders;

                  (vii) use its reasonable efforts to obtain the consent or
         approval of each governmental agency or authority, whether federal,
         state or local, that may be required to effect the Exchange
         Registration, the Exchange Offer and the offering and sale of Exchange
         Securities by broker-dealers during the Resale Period;

                  (viii) provide a CUSIP number for the Exchange Securities, not
         later than the Effective Time; and

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                  (ix) comply with all applicable rules and regulations of the
         Commission, and make generally available to its securityholders as soon
         as practicable, but no later than 18 months after the effective date of
         such Exchange Registration Statement, an earnings statement of the
         Partnership and its subsidiaries complying with Section 11(a) of the
         Securities Act (including, at the option of the Partnership, Rule 158
         thereunder).

         As a condition to its participation in the Exchange Offer pursuant to
the terms of this Agreement, each holder shall furnish, upon the request of the
Partnership, prior to the consummation thereof, a written representation to the
Partnership (which may be contained in the letter of transmittal contemplated by
the Exchange Registration) to the effect that (A) it is not an affiliate of the
Partnership, (B) it is not engaged in, and does not intend to engage in, and has
no arrangement or understanding with any person to participate in, a
distribution of the Exchange Securities to be issued in the Exchange Offer and
(C) it is acquiring the Exchange Securities in its ordinary course of business.
In addition, although holders shall otherwise cooperate in the Partnership's
preparation for the Exchange Offer, each holder hereby acknowledges and agrees
that any broker-dealer who purchases the Securities from the Partnership to
resell pursuant to Rule 144A or any other available exemption under the
Securities Act or any holder who is an affiliate of the Partnership or who
intends to use the Exchange Offer to participate in a distribution of the
Exchange Securities to be acquired in the Exchange Offer (1) could not under
Commission policy as in effect on the date of this Agreement rely on the
position of the Commission enunciated in Morgan Stanley and Co., Inc. (available
June 5, 1991) and Exxon Capital Holdings Corporation (available May 13, 1988),
as interpreted in the Commission's letter to Shearman & Sterling dated July 2,
1993, and similar no-action letters, (2) will not be entitled to tender
Securities in the Exchange Offer, and (3) must comply with the registration and
prospectus delivery requirements of the Securities Act in connection with any
sale or transfer of the Securities unless such sale or transfer is made pursuant
to any exemption from such requirements.

         (c) In connection with the Partnership's obligations with respect to
the Shelf Registration, if applicable, the Partnership shall, as soon as
practicable (or as otherwise specified):

                  (i) use its reasonable efforts to prepare and file with the
         Commission a Shelf Registration Statement on any form that may be
         utilized by the Partnership and that shall register all of the
         Registrable Securities for resale by the holders thereof in accordance
         with such method or methods of disposition as may be specified by such
         of the holders as, from time to time, may be Electing Holders and use
         its reasonable efforts to cause such Shelf Registration Statement to
         become effective;

                  (ii) not less than 30 days prior to the Effective Time of the
         Shelf Registration Statement, mail the Notice and Questionnaire to the
         holders of Registrable Securities; no holder shall be entitled to be
         named as a selling securityholder in the Shelf Registration Statement
         as of the Effective Time, and no holder shall be entitled to use the
         prospectus forming a part thereof for resales of Registrable Securities
         at any time, unless such holder has returned a completed and signed
         Notice and Questionnaire to the Partnership by the deadline for
         response set forth therein; provided, however, holders of Registrable
         Securities shall have at least 20 days from the date on which the
         Notice and

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         Questionnaire is first mailed to such holders to return a completed and
         signed Notice and Questionnaire to the Partnership;

                  (iii) after the Effective Time of the Shelf Registration
         Statement, upon the request of any holder of Registrable Securities
         that is not then an Electing Holder, promptly send a Notice and
         Questionnaire to such holder; provided, that the Partnership shall not
         be required to take any action to name such holder as a selling
         securityholder in the Shelf Registration Statement or to enable such
         holder to use the prospectus forming a part thereof for resales of
         Registrable Securities until such holder has returned a completed and
         signed Notice and Questionnaire to the Partnership; and, provided
         further, that the Partnership shall not be required to file an
         amendment to such Shelf Registration Statement for the sole reason of
         naming such holder as a selling securityholder in the Shelf
         Registration Statement;

                  (iv) as soon as practicable prepare and file with the
         Commission such amendments and supplements to such Shelf Registration
         Statement and the prospectus included therein as may be necessary to
         effect and maintain the effectiveness of such Shelf Registration
         Statement for the period specified in Section 2(b) hereof and as may be
         required by the applicable rules and regulations of the Commission and
         the instructions applicable to the form of such Shelf Registration
         Statement, and furnish to the Electing Holders copies of any such
         supplement or amendment simultaneously with or prior to its being used
         or filed with the Commission;

                  (v) comply with the provisions of the Securities Act with
         respect to the disposition of all of the Registrable Securities covered
         by such Shelf Registration Statement in accordance with the intended
         methods of disposition by the Electing Holders provided for in such
         Shelf Registration Statement;

                  (vi) provide (A) the Electing Holders, (B) the underwriters
         (which term, for purposes of this Registration Rights Agreement, shall
         include a person deemed to be an underwriter within the meaning of
         Section 2(a)(11) of the Securities Act), if any, thereof, (C) any sales
         or placement agent therefor, (D) counsel for any such underwriter or
         agent and (E) not more than one counsel for all the Electing Holders
         the opportunity to participate in the preparation of such Shelf
         Registration Statement, each prospectus included therein or filed with
         the Commission and each amendment or supplement thereto;

                  (vii) for a reasonable period prior to the filing of such
         Shelf Registration Statement, and throughout the period specified in
         Section 2(b) hereof, make available at reasonable times at the
         Partnership's principal place of business or such other reasonable
         place for inspection by the persons referred to in Section 3(c)(vi)
         hereof who shall certify to the Partnership that they have a current
         intention to sell the Registrable Securities pursuant to the Shelf
         Registration such financial and other information and books and records
         of the Partnership, and reasonably cause the officers, employees,
         counsel and independent certified public accountants of the Partnership
         to respond to such inquiries, as shall be reasonably necessary to
         conduct a reasonable investigation within the meaning of Section 11 of
         the Securities Act; provided, however, that each such party shall be

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         required to maintain in confidence and not to disclose to any other
         person any information or records considered by the Partnership in good
         faith as being confidential, until such time as (A) such information
         becomes a matter of public record (whether by virtue of its inclusion
         in such Shelf Registration Statement or otherwise), or (B) such person
         shall be required so to disclose such information pursuant to a
         subpoena or order of any court or other governmental agency or body
         having jurisdiction over the matter (subject to the requirements of
         such order, and only after such person shall have given the Partnership
         prompt prior written notice of such requirement), or (C) such
         information is required, as determined by the Partnership in good faith
         and its counsel, to be set forth in such Shelf Registration Statement
         or the prospectus included therein or in an amendment to such Shelf
         Registration Statement or an amendment or supplement to such prospectus
         in order that such Shelf Registration Statement, prospectus, amendment
         or supplement, as the case may be, complies with applicable
         requirements of the federal securities laws and the rules and
         regulations of the Commission thereunder and does not contain an untrue
         statement of a material fact or omit to state therein a material fact
         required to be stated therein or necessary to make the statements
         therein not misleading in light of the circumstances then existing;

                  (viii) promptly notify each of the Electing Holders, any sales
         or placement agent therefor and any underwriter thereof (which
         notification may be made through any managing underwriter that is a
         representative of such underwriter for such purpose) and, if requested
         by such Holders, agents or underwriters, confirm such advice in
         writing, (A) when such Shelf Registration Statement or the prospectus
         included therein or any prospectus amendment or supplement or
         post-effective amendment has been filed, and, with respect to such
         Shelf Registration Statement or any post-effective amendment, when the
         same has become effective, (B) of any request by the Commission for
         amendments or supplements to such Shelf Registration Statement or
         prospectus or for additional information, (C) of the issuance by the
         Commission of any stop order suspending the effectiveness of such Shelf
         Registration Statement or the initiation or threatening of any
         proceedings for that purpose, (D) of the receipt by the Partnership of
         any notification with respect to the suspension of the qualification of
         the Registrable Securities for sale in any jurisdiction or the
         initiation or threatening of any proceeding for such purpose, or (E) if
         at any time when a prospectus is required to be delivered under the
         Securities Act, that such Shelf Registration Statement, prospectus,
         prospectus amendment or supplement or post-effective amendment does not
         conform in all material respects to the applicable requirements of the
         Securities Act and the Trust Indenture Act and the rules and
         regulations of the Commission thereunder or contains an untrue
         statement of a material fact or omits to state any material fact
         required to be stated therein or necessary to make the statements
         therein not misleading in light of the circumstances then existing;

                  (ix) use its reasonable efforts to obtain the withdrawal of
         any order suspending the effectiveness of such Shelf Registration
         Statement or any post-effective amendment thereto at the earliest
         practicable date;

                  (x) if requested by any managing underwriter or underwriters,
         any placement or sales agent or any Electing Holder, promptly
         incorporate in a prospectus supplement or post-effective amendment such
         information as is required by the applicable rules and

                                       11
<PAGE>

         regulations of the Commission and as such managing underwriter or
         underwriters, such agent or such Electing Holder may reasonably propose
         should be included therein relating to the terms of the sale of such
         Registrable Securities, including information with respect to the
         principal amount of Registrable Securities being sold by such Electing
         Holder or agent or to any underwriters, the name and description of
         such Electing Holder, agent or underwriter, the offering price of such
         Registrable Securities and any discount, commission or other
         compensation payable in respect thereof, the purchase price being paid
         therefor by such underwriters and with respect to any other terms of
         the offering of the Registrable Securities to be sold by such Electing
         Holder or agent or to such underwriters; and make all required filings
         of such prospectus supplement or post-effective amendment promptly
         after notification of the matters to be incorporated in such prospectus
         supplement or post-effective amendment;

                  (xi) furnish to each Electing Holder, each placement or sales
         agent, if any, therefor, each underwriter, if any, thereof and the
         respective counsel referred to in Section 3(c)(vi), a copy of such
         Shelf Registration Statement, each such amendment and supplement
         thereto (in each case including all exhibits thereto (in the case of an
         Electing Holder of Registrable Securities, upon request) and documents
         incorporated by reference therein) and such number of copies of such
         Shelf Registration Statement (excluding exhibits thereto and documents
         incorporated by reference therein unless specifically so requested by
         such Electing Holder, agent or underwriter, as the case may be) and of
         the prospectus included in such Shelf Registration Statement (including
         each preliminary prospectus and any summary prospectus), in conformity
         in all material respects with the applicable requirements of the
         Securities Act and the Trust Indenture Act and the rules and
         regulations of the Commission thereunder, and such other documents as
         such Electing Holder, agent, if any, and underwriter, if any, may
         reasonably request in order to facilitate the offering and disposition
         of the Registrable Securities owned by such Electing Holder, offered or
         sold by such agent or underwritten by such underwriter and to permit
         such Electing Holder, agent and underwriter to satisfy the prospectus
         delivery requirements of the Securities Act; and the Partnership hereby
         consents to the use of such prospectus (including such preliminary and
         summary prospectus) and any amendment or supplement thereto by each
         such Electing Holder and by any such agent and underwriter, in each
         case in the form most recently provided to such person by the
         Partnership, in connection with the offering and sale of the
         Registrable Securities covered by the prospectus (including such
         preliminary and summary prospectus) or any supplement or amendment
         thereto;

                  (xii) use reasonable efforts to (A) register or qualify the
         Registrable Securities to be included in such Shelf Registration
         Statement under such securities laws or blue sky laws of such
         jurisdictions as any Electing Holder and each placement or sales agent,
         if any, therefor and underwriter, if any, thereof shall reasonably
         request in writing, (B) keep such registrations or qualifications in
         effect and comply with such laws so as to permit the continuance of
         offers, sales and dealings therein in such jurisdictions during the
         period the Shelf Registration is required to remain effective under
         Section 2(b) above, and (C) take any and all other actions as may be
         reasonably necessary to enable each such Electing Holder, agent, if
         any, and underwriter, if any, to consummate the disposition in such
         jurisdictions under the securities laws or blue sky laws of such
         jurisdictions;

                                       12
<PAGE>

         provided, however, that the Partnership shall not be required for any
         such purpose to (1) qualify as a foreign partnership or as a dealer in
         securities in any jurisdiction wherein it would not otherwise be
         required to qualify but for the requirements of this Agreement, (2)
         consent to general service of process in any such jurisdiction or
         subject itself to taxation in any such jurisdiction if it is not
         already so subject, or (3) make any changes to its certificate of
         limited partnership or its agreement of limited partnership or any
         agreement between it and its unitholders;

                  (xiii) use its reasonable efforts to obtain the consent or
         approval of each governmental agency or authority, whether federal,
         state or local, that may be required to effect the Shelf Registration
         or the offering or sale in connection therewith or to enable the
         selling holder or holders to offer, or to consummate the disposition
         of, their Registrable Securities;

                  (xiv) unless any Registrable Securities shall be in book-entry
         only form, cooperate with the Electing Holders and the managing
         underwriters, if any, to facilitate the timely preparation and delivery
         of certificates representing Registrable Securities to be sold, which
         certificates, if so required by any securities exchange upon which any
         Registrable Securities are listed, shall be penned, lithographed or
         engraved, or produced by any combination of such methods, on steel
         engraved borders, and which certificates shall not bear any restrictive
         legends; and, in the case of an underwritten offering, enable such
         Registrable Securities to be in such denominations and registered in
         such names as the managing underwriters may reasonably request at least
         two Business Days prior to any sale of the Registrable Securities;

                  (xv) provide a CUSIP number for the Registrable Securities,
         not later than the applicable Effective Time;

                  (xvi) in connection with an underwritten offering of
         Registrable Securities, enter into one or more customary underwriting
         agreements, engagement letters, agency agreements, "best efforts"
         underwriting agreements or similar agreements, as appropriate,
         including customary provisions relating to indemnification and
         contribution, and take such other actions in connection therewith as
         any Electing Holders aggregating at least a majority in aggregate
         principal amount of the Registrable Securities at the time outstanding
         (it being understood for purposes of this Agreement that all holders of
         the Registrable Securities shall vote on this and any other matter as a
         single class) shall reasonably request in order to expedite or
         facilitate the disposition of such Registrable Securities;

                  (xvii) in connection with any underwritten offering of
         Registrable Securities pursuant to a Shelf Registration, to the extent
         requested by the underwriters thereof, (A) make such representations
         and warranties to the Electing Holders and the underwriters thereof in
         form, substance and scope as are customarily made in primary
         underwritten offerings of debt securities and covering matters
         including, but not limited to those set forth in the Purchase
         Agreement; (B) obtain an opinion of counsel to the Partnership in
         customary form and covering such matters of the type customarily
         covered by such an opinion in primary offerings of debt securities as
         the underwriters thereof may

                                       13
<PAGE>

         reasonably request, addressed to such underwriters thereof and dated
         the effective date of such Shelf Registration Statement and the date of
         the closing under the underwriting agreement relating thereto) covering
         the matters customarily covered in opinions requested in primary
         underwritten offerings of debt securities (it being agreed that the
         matters to be covered by such opinion may be subject to customary
         qualifications and exceptions and it being understood that opinions
         that are substantially the same as those called for by the Purchase
         Agreement will be satisfactory for these purposes); (C) obtain a "cold
         comfort" letter or "cold comfort" letters from the independent
         certified public accountants of the Partnership addressed to the
         underwriters thereof, dated (i) the effective date of such Shelf
         Registration Statement and (ii) the effective date of any prospectus
         supplement to the prospectus included in such Shelf Registration
         Statement or post-effective amendment to such Shelf Registration
         Statement that includes unaudited or audited financial statements as of
         a date or for a period subsequent to that of the latest such statements
         included in such prospectus (and, if such Shelf Registration Statement
         contemplates an underwritten offering pursuant to any prospectus
         supplement to the prospectus included in such Shelf Registration
         Statement or post-effective amendment to such Shelf Registration
         Statement that includes unaudited or audited financial statements as of
         a date or for a period subsequent to that of the latest such statements
         included in such prospectus, dated the date of the closing under the
         underwriting agreement relating thereto), such letter or letters to be
         in customary form and covering such matters of the type customarily
         covered by letters of such type; (D) deliver such customary documents
         and certificates, including officers' certificates, as may be
         reasonably requested by the underwriters thereof to evidence the
         accuracy of the representations and warranties made pursuant to clause
         (A) above and the compliance with or satisfaction of any agreements or
         conditions contained in the underwriting agreement or other agreement
         entered into by the Partnership; and (E) undertake such obligations
         relating to expense reimbursement, indemnification and contribution as
         are provided in Section 5 hereof;

                  (xviii) notify in writing each holder of Registrable
         Securities of any proposal of any amendment or waiver effected pursuant
         to Section 8(h) hereof, each of which notices shall contain the text of
         the amendment or waiver proposed or effected, as the case may be; and

                  (xix) comply with all applicable rules and regulations of the
         Commission, and make generally available to its securityholders as soon
         as practicable, but in any event not later than 18 months after the
         effective date of such Shelf Registration Statement, an earnings
         statement of the Partnership and its subsidiaries complying with
         Section 11(a) of the Securities Act (including, at the option of the
         Partnership, Rule 158 thereunder).

         (d) In the event that the Partnership would be required, pursuant to
Section 3(c)(viii)(E) above, to notify the Electing Holders, the placement or
sales agent, if any, therefor and the managing underwriters, if any, thereof,
the Partnership shall without any unreasonable delay prepare and furnish to each
of the Electing Holders, to each placement or sales agent, if any, and to each
such underwriter, if any, a reasonable number of copies of a prospectus
supplemented or amended so that, as thereafter delivered to purchasers of
Registrable Securities, such prospectus shall conform in all material respects
to the applicable requirements of the Securities Act and the Trust Indenture Act
and the rules and regulations of the

                                       14
<PAGE>

Commission thereunder and shall not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then
existing. Each Electing Holder agrees that upon receipt of any notice from the
Partnership pursuant to Section 3(c)(viii)(E) hereof, such Electing Holder shall
forthwith discontinue the disposition of Registrable Securities pursuant to the
Shelf Registration Statement applicable to such Registrable Securities until
such Electing Holder shall have received copies of such amended or supplemented
prospectus, and if so directed by the Partnership, such Electing Holder shall
deliver to the Partnership (at the Partnership's expense) all copies of the
prospectus covering such Registrable Securities then in such Electing Holder's
possession for the purpose of making offers of the Registrable Securities.

         (e) In the event of a Shelf Registration, in addition to the
information required to be provided by each Electing Holder in its Notice and
Questionnaire, the Partnership may require such Electing Holder to furnish to
the Partnership such additional information regarding such Electing Holder and
such Electing Holder's intended method of distribution of Registrable Securities
as may be required in order to comply with the Securities Act. Each such
Electing Holder agrees to notify the Partnership as promptly as practicable of
any inaccuracy or change in information previously furnished by such Electing
Holder to the Partnership or of the occurrence of any event in either case as a
result of which any prospectus relating to such Shelf Registration contains or
would contain an untrue statement of a material fact regarding such Electing
Holder or such Electing Holder's intended method of disposition of such
Registrable Securities or omits to state any material fact regarding such
Electing Holder or such Electing Holder's intended method of disposition of such
Registrable Securities required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing,
and promptly to furnish to the Partnership any additional information required
to correct and update any previously furnished information or required so that
such prospectus shall not contain, with respect to such Electing Holder or the
disposition of such Registrable Securities, an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then
existing.

         (f) Until the expiration of the Rule 144(k) Holding Period, the
Partnership will not, and will use its reasonable efforts to cause its
"affiliates" (as defined in Rule 144) not to, resell any of the Securities that
have been reacquired by any of them except pursuant to an effective registration
statement under the Securities Act.

Section 4. Registration Expenses

         The Partnership agrees to bear and to pay or cause to be paid promptly
all reasonable expenses incident to the Partnership's performance of or
compliance with this Registration Rights Agreement, including (a) all Commission
and any applicable National Association of Securities Dealers, Inc. ("NASD")
registration, filing and review fees and expenses, including fees and
disbursements of one counsel for the placement or sales agent or underwriters as
a group in connection with such NASD registration, filing and review, (b) all
fees and expenses in connection with the qualification of the Securities for
offering and sale under the state securities and blue sky laws referred to in
Section 3(c)(xii) hereof and determination of their eligibility for investment
under the laws of such jurisdictions as any managing underwriters or the
Electing

                                       15
<PAGE>

Holders may reasonably designate, but not the fees and disbursements of counsel
for the Electing Holders or underwriters as a group in connection with such
qualification and determination, (c) all expenses relating to the preparation,
printing, production, distribution and reproduction of each registration
statement required to be filed hereunder, each prospectus included therein or
prepared for distribution pursuant hereto, each amendment or supplement to the
foregoing, the expenses of preparing the Securities for delivery and the
expenses of printing or producing any required underwriting agreements,
agreements among underwriters, selling agreements and blue sky or legal
investment memoranda and all other documents in connection with the offering,
sale or delivery of Securities to be disposed of (including certificates
representing the Securities), (d) messenger, telephone and delivery expenses
incurred by the Partnership, its counsel and auditors relating to the offering,
sale or delivery of Securities and the preparation of documents referred in
clause (c) above, (e) fees and expenses of the Trustee under the Indenture, any
agent of the Trustee and any counsel for the Trustee and of any collateral agent
or custodian, (f) internal expenses (including all salaries and expenses of the
Partnership's officers and employees performing legal or accounting duties), (g)
fees, disbursements and expenses of counsel and independent certified public
accountants of the Partnership (including the expenses of any opinions or "cold
comfort" letters required by or incident to such performance and compliance),
(h) fees, disbursements and expenses of one counsel for the Electing Holders
retained in connection with a Shelf Registration, as selected by the Electing
Holders of at least a majority in aggregate principal amount of the Registrable
Securities held by Electing Holders (which counsel shall be reasonably
satisfactory to the Partnership), (i) any fees charged by securities rating
services for rating the Securities, and (j) fees, expenses and disbursements of
any other persons, including special experts, retained by the Partnership in
connection with such registration (collectively, the "Registration Expenses").
To the extent that any Registration Expenses are reasonably incurred, assumed or
paid by any holder of Registrable Securities or any placement or sales agent
therefor or underwriter thereof, the Partnership shall reimburse such person for
the full amount of the Registration Expenses so incurred, assumed or paid
promptly after receipt of a request therefor. Notwithstanding the foregoing, the
holders of the Registrable Securities being registered shall pay all agency fees
and commissions, transfer taxes, if any, and underwriting discounts and
commissions attributable to the sale of such Registrable Securities and the fees
and disbursements of any counsel or other advisors or experts retained by such
holders (severally or jointly), other than the counsel and experts specifically
referred to above.

Section 5. Indemnification

         (a) Indemnification by the Partnership. The Partnership will indemnify
and hold harmless each of the holders of Registrable Securities included in an
Exchange Registration Statement, each of the Electing Holders of Registrable
Securities included in a Shelf Registration Statement and each person who
participates as a placement or sales agent or as an underwriter in any offering
or sale of such Registrable Securities against any losses, claims, damages or
liabilities, joint or several, to which such holder, agent or underwriter may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon an untrue statement or alleged untrue statement of a material
fact contained in any Exchange Registration Statement or Shelf Registration
Statement, as the case may be, under which such Registrable Securities were
registered under the Securities Act, or any preliminary, final or summary
prospectus contained therein or furnished by the Partnership to any such holder,
Electing Holder, agent or underwriter, or any amendment

                                       16
<PAGE>

or supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse such
holder, such Electing Holder, such agent and such underwriter for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such action or claim as such expenses are incurred; provided,
however, that the Partnership shall not be liable to any such person in any such
case to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such registration statement or amendment or supplement
thereto, in reliance upon and in conformity with written information furnished
to the Partnership by such person expressly for use therein; and, provided
further, that the Partnership shall not be liable to any such person, to the
extent that any such losses, claims, damages or liabilities arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact or
omission or alleged omission if either (A)(i) such person was required by law to
send or deliver, and failed to send or deliver, a copy of the prospectus with or
prior to delivery of written confirmation of the sale by such person to the
person asserting the claims from which such losses, claims, damages or
liabilities arise and (ii) the prospectus previously delivered by the
Partnership to such person would have corrected such untrue statement or alleged
untrue statement or omission or alleged omission, (B)(i) such untrue statement
or alleged untrue statement or omission or alleged omission is corrected in an
amendment to the prospectus and (ii) having been previously furnished by or on
behalf of the Partnership with copies of the prospectus as so amended or
supplemented, such person failed to send or deliver a copy of such amendment to
the prospectus with or prior to the delivery of written confirmation of the sale
of a Registrable Security to the person asserting the claim from which such
losses, claims, damages or liabilities arise or (C)(i) such person disposed of
Registrable Securities to the person asserting the claim from which such losses,
claims, damages or liabilities arise pursuant to an Exchange Registration
Statement or Shelf Registration Statement and sent or delivered, or was required
by law to send or deliver, a prospectus to such person in connection with such
disposition, (ii) such person received a suspension notice as provided in
Sections 3(b)(iii)(C) through (E) and 3(c)(viii)(C) through (E) hereof in
writing at least one Business Day prior to the date of such disposition and
(iii) such untrue statement or alleged untrue statement or omission or alleged
omission was the reason for such suspension notice.

         (b) Indemnification by the Holders and any Agents and Underwriters. In
the case of a Shelf Registration pursuant to Section 2(b) hereof, each Electing
Holder and each underwriter who participates as an underwriter in any offering
or sale of Registrable Securities, severally and not jointly, will (i) indemnify
and hold harmless the Partnership, and all other holders of Registrable
Securities, against any losses, claims, damages or liabilities to which the
Partnership or such other holders of Registrable Securities may become subject,
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
such registration statement, or any preliminary, final or summary prospectus
contained therein or furnished by the Partnership to any such Electing Holder,
agent or underwriter, or any amendment or supplement thereto, or arise out of or
are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged

                                       17
<PAGE>

omission was made in reliance upon and in conformity with written information
furnished to the Partnership by such Electing Holder or underwriter expressly
for use therein, and (ii) reimburse the Partnership for any legal or other
expenses reasonably incurred by the Partnership in connection with investigating
or defending any such action or claim as such expenses are incurred; provided,
however, that no such Electing Holder shall be required to undertake liability
to any person under this Section 5(b) for any amounts in excess of the dollar
amount of the proceeds to be received by such Electing Holder from the sale of
such Electing Holder's Registrable Securities pursuant to such registration.

         (c) Notices of Claims, Etc. Promptly after receipt by an indemnified
party under subsection (a) or (b) above of written notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party pursuant to the indemnification provisions of
or contemplated by this Section 5, notify such indemnifying party in writing of
the commencement of such action; but the omission so to notify the indemnifying
party shall not relieve it from any liability that it may have to any
indemnified party otherwise than under the indemnification provisions of or
contemplated by Section 5(a) or 5(b) hereof. In case any such action shall be
brought against any indemnified party and it shall notify an indemnifying party
of the commencement thereof, such indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, jointly with any
other indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, such indemnifying party shall
not be liable to such indemnified party for any legal expenses of other counsel
or any other expenses, in each case subsequently incurred by such indemnified
party, in connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the written consent of the
indemnified party, effect the settlement or compromise of, or consent to the
entry of any judgment with respect to, any pending or threatened action or claim
in respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability arising out of
such action or claim and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any indemnified
party.

         (d) Contribution. If for any reason the indemnification provisions
contemplated by Section 5(a) or Section 5(b) are unavailable to or insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages
or liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and the indemnified party in connection
with the statements or omissions that resulted in such losses, claims, damages
or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent

                                       18
<PAGE>

such statement or omission. The parties hereto agree that it would not be just
and equitable if contributions pursuant to this Section 5(d) were determined by
pro rata allocation (even if the holders or any agents or underwriters or all of
them were treated as one entity for such purpose) or by any other method of
allocation that does not take account of the equitable considerations referred
to in this Section 5(d). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, or liabilities (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 5(d), no holder shall be required to contribute any
amount in excess of the amount by which the dollar amount of the proceeds
received by such holder from the sale of any Registrable Securities (after
deducting any fees, discounts and commissions applicable thereto) exceeds the
amount of any damages that such holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission, and no underwriter shall be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages that such underwriter has 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) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The holders' and any underwriters' obligations in this
Section 5(d) to contribute shall be several in proportion to the principal
amount of Registrable Securities registered or underwritten, as the case may be,
by them and not joint.

         (e) The obligations of the Partnership under this Section 5 shall be in
addition to any liability that the Partnership may otherwise have and shall
extend, upon the same terms and conditions, to each person, if any, who controls
any such holder, Electing Holder, sales agent or underwriter participating in
the sale of Registrable Securities within the meaning of the Securities Act; and
the obligations of the Electing Holders and any agents or underwriters
contemplated by this Section 5 shall be in addition to any liability that the
respective Electing Holder, agent or underwriter may otherwise have and shall
extend, upon the same terms and conditions, to each officer and director of the
Partnership, its general partner or the delegate of its general partner
(including any person who, with his consent, is named in any registration
statement as about to become a director of the Partnership, its general partner
or the delegate of its general partner) and to each person, if any, who controls
the Partnership, its general partner or the delegate of its general partner
within the meaning of the Securities Act.

Section 6. Underwritten Offerings

         (a) Selection of Underwriters. If any of the Registrable Securities
covered by the Shelf Registration are to be sold pursuant to an underwritten
offering, the managing underwriter or underwriters thereof shall be designated
by Electing Holders holding at least a majority in aggregate principal amount of
the Registrable Securities to be included in such offering, provided, that such
designated managing underwriter or underwriters is or are reasonably acceptable
to the Partnership.

                                       19
<PAGE>

         (b) Participation by Holders. Each holder of Registrable Securities
hereby agrees with each other such holder that no such holder may participate in
any underwritten offering hereunder unless such holder (i) agrees to sell such
holder's Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

Section 7. Rule 144

         The Partnership covenants to the holders of Registrable Securities that
to the extent it shall be required to do so under the Exchange Act, the
Partnership shall timely file the reports required to be filed by it under the
Exchange Act or the Securities Act (including the reports under Section 13 and
15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted
by the Commission under the Securities Act), all to the extent required from
time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted
by the Commission. Upon the request of any holder of Registrable Securities in
connection with that holder's sale pursuant to Rule 144, the Partnership shall
advise such holder in writing as to whether the Partnership has complied with
such requirements.

Section 8. Miscellaneous

         (a) No Inconsistent Agreements. The Partnership represents, warrants,
covenants and agrees that, except pursuant to the Partnership Agreement relating
to the Partnership and granted in connection with the acquisition of certain
assets, it has not granted, and shall not grant, registration rights with
respect to Registrable Securities or any other securities that would be
inconsistent with the terms contained in this Registration Rights Agreement.

         (b) Specific Performance. The parties hereto acknowledge that there
would be no adequate remedy at law if the Partnership fails to perform any of
its obligations hereunder and that the Purchaser and the holders from time to
time of the Registrable Securities may be irreparably harmed by any such
failure, and accordingly agree that the Purchaser and such holders, in addition
to any other remedy to which they may be entitled at law or in equity, shall be
entitled to compel specific performance of the obligations of the Partnership
under this Registration Rights Agreement in accordance with the terms and
conditions of this Registration Rights Agreement, in any court of the United
States or any state thereof having jurisdiction; provided, that, in the case of
any terms of this Registration Rights Agreement for which Liquidated Damages
pursuant to Section 2(c) hereof is expressly provided as a remedy of a violation
of such terms, such Liquidated Damages shall be the sole monetary damages for
such violation.

         (c) Notices. All notices, requests, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when delivered by hand, if delivered personally or by courier, or
three days after being deposited in the mail (registered or certified mail,
postage prepaid, return receipt requested), or telecopied (when

                                       20
<PAGE>

receipt is acknowledged) as follows: if to the Partnership, One Allen Center,
Suite 1000, 500 Dallas Street, Houston, Texas 77002, Attention: Park Shaper,
telecopier number (713) 495-2782 (with a copy to the General Counsel), and, if
to a holder, to the address of such holder set forth in the security register or
other records of the Partnership, or to such other address as the Partnership or
any such holder may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon
receipt.

         (d) Parties in Interest. All the terms and provisions of this
Registration Rights Agreement shall be binding upon, shall inure to the benefit
of and shall be enforceable by the parties hereto and the holders from time to
time of the Registrable Securities and the respective successors and assigns of
the parties hereto and such holders; provided, however, that nothing herein
shall be deemed to permit any transfer of Registrable Securities in violation of
this Agreement, the Indenture or applicable law. In the event that any
transferee of any holder of Registrable Securities shall acquire Registrable
Securities, in any manner, whether by gift, bequest, purchase, operation of law
or otherwise, such transferee shall, without any further writing or action of
any kind, be deemed a beneficiary hereof for all purposes and such Registrable
Securities shall be held subject to all of the terms of this Registration Rights
Agreement, and by taking and holding such Registrable Securities such transferee
shall be entitled to receive the benefits of, and be conclusively deemed to have
agreed to be bound by all of the applicable terms and provisions of this
Registration Rights Agreement. If the Partnership shall so request, any such
successor, assign or transferee shall agree in writing to acquire and hold the
Registrable Securities subject to all of the applicable terms hereof.

         (e) Survival. The respective indemnities, agreements, representations,
warranties and each other provision set forth in this Registration Rights
Agreement or made pursuant hereto shall remain in full force and effect
regardless of any investigation (or statement as to the results thereof) made by
or on behalf of any holder of Registrable Securities, any director, officer or
partner of such holder, any agent or underwriter or any director, officer or
partner thereof, or any controlling person of any of the foregoing, and shall
survive delivery of and payment for the Registrable Securities pursuant to the
Purchase Agreement and the transfer and registration of Registrable Securities
by such holder and the consummation of an Exchange Offer.

         (f) Governing Law. This Registration Rights Agreement shall be governed
by and construed in accordance with the laws of the State of New York.

         (g) Headings. The descriptive headings of the several Sections and
paragraphs of this Registration Rights Agreement are inserted for convenience
only, do not constitute a part of this Registration Rights Agreement and shall
not affect in any way the meaning or interpretation of this Registration Rights
Agreement.

         (h) Entire Agreement; Amendments. This Registration Rights Agreement
and the other writings referred to herein (including the Indenture and the form
of Securities) or delivered pursuant hereto that form a part hereof contain the
entire understanding of the parties with respect to its subject matter. This
Registration Rights Agreement supersedes all prior agreements and understandings
between the parties with respect to its subject matter; provided, however, it is
understood that the substantially similar Registration Rights Agreement, dated
as of August 19, 2002, relating to the 7.30% Senior Notes due 2033 and 5.35%
Senior Notes due 2007 issued on

                                       21
<PAGE>

such date is unaffected by this Registration Rights Agreement and shall remain
in full force and effect with respect thereto. Such Registration Rights
Agreement and this Registration Rights Agreement are intended to be interpreted
in a consistent manner to facilitate the orderly implementation of the rights
granted hereunder and thereunder with respect to the 7.30% Senior Notes due
2033. This Registration Rights Agreement may be amended and the observance of
any term of this Registration Rights Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively) only by a
written instrument duly executed by the Partnership and the holders of at least
a majority in aggregate principal amount of the Registrable Securities at the
time outstanding (except with respect to Section 2(c) hereof, which may be
amended only with the consent of each holder of Registrable Securities at the
time outstanding). Each holder of any Registrable Securities at the time or
thereafter outstanding shall be bound by any amendment or waiver effected
pursuant to this Section 8(h), whether or not any notice, writing or marking
indicating such amendment or waiver appears on such Registrable Securities or is
delivered to such holder.

         (i) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provisions in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

         (j) Counterparts. This agreement may be executed by the parties in
counterparts, each of which shall be deemed to be an original, but all such
respective counterparts shall together constitute one and the same instrument.

                                       22
<PAGE>

         If the foregoing is in accordance with your understanding, please sign
and return to us four counterparts hereof, being one for the Partnership, one
for the Purchaser and one for each counsel, and upon the acceptance hereof by
you, this letter and such acceptance hereof shall constitute a binding agreement
between the Purchaser and the Partnership.

                                    Very truly yours,

                                    KINDER MORGAN ENERGY PARTNERS, L.P.

                                    By: Kinder Morgan G.P., Inc.,
                                        its general partner

                                        By: Kinder Morgan Management, LLC,
                                            its delegate

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

Accepted as of the date hereof:

J.P. MORGAN SECURITIES INC.

By: /s/ Carl J. Mehldau Jr.
    --------------------------
    Name:  Carl J. Mehldau Jr.
    Title: Vice President

                                       23
<PAGE>

                                                                       EXHIBIT A

                       KINDER MORGAN ENERGY PARTNERS, L.P.
                         INSTRUCTION TO DTC PARTICIPANTS
                                [DATE OF MAILING]
                     URGENT -- IMMEDIATE ATTENTION REQUESTED
                         DEADLINE FOR RESPONSE: [DATE]*

         The Depository Trust Company ("DTC") has identified you as a DTC
Participant through which beneficial interests in the 7.30% Senior Notes due
2033 (the "Securities") of Kinder Morgan Energy Partners, L.P. (the
"Partnership") are held.

         The Partnership is in the process of registering the Securities under
the Securities Act of 1933 for resale by the beneficial owners thereof. In order
to have their Securities included in the registration statement, beneficial
owners must complete and return the enclosed Notice of Registration Statement
and Selling Securityholder Questionnaire.

         It is important that beneficial owners of the Securities receive a copy
of the enclosed materials as soon as possible as their rights to have the
Securities included in the registration statement depend upon their returning
the Notice and Questionnaire by [Deadline For Response]. Please forward a copy
of the enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact Kinder Morgan
Energy Partners, L.P., One Allen Center, Suite 1000, 500 Dallas Street, Houston,
Texas 77002, Attention: General Counsel.

----------
* Not less than 20 calendar days from date of mailing.

                                       A-1
<PAGE>

                       KINDER MORGAN ENERGY PARTNERS, L.P.
                        NOTICE OF REGISTRATION STATEMENT
                                       AND
                      SELLING SECURITYHOLDER QUESTIONNAIRE

                                     [DATE]

         Reference is hereby made to the Registration Rights Agreement (the
"Registration Rights Agreement") between Kinder Morgan Energy Partners, L.P.
(the "Partnership"), and the Purchaser named therein. Pursuant to the
Registration Rights Agreement, the Partnership has filed with the United States
Securities and Exchange Commission (the "Commission") a registration statement
on Form S-3 (the "Shelf Registration Statement") for the registration and resale
under Rule 415 of the Securities Act of 1933, as amended (the "Securities Act"),
of the Partnership's 7.30% Senior Notes due 2033 (the "Securities"). A copy of
the Registration Rights Agreement is attached hereto. All capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement.

         Each beneficial owner of Registrable Securities (as defined below) is
entitled to have the Registrable Securities beneficially owned by it included in
the Shelf Registration Statement. In order to have Registrable Securities
included in the Shelf Registration Statement, this Notice of Registration
Statement and Selling Securityholder Questionnaire (the "Notice and
Questionnaire") must be completed, executed and delivered to the Partnership's
counsel at the address set forth herein for receipt ON OR BEFORE [Deadline for
Response]. Beneficial owners of Registrable Securities who do not complete,
execute and return this Notice and Questionnaire by such date (i) will not be
named as selling securityholders in the Shelf Registration Statement and (ii)
may not use the prospectus forming a part thereof for resales of Registrable
Securities.

         Certain legal consequences arise from being named as a selling
securityholder in the Shelf Registration Statement and related prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Shelf Registration
Statement and related prospectus.

<PAGE>

                                    ELECTION

         The undersigned holder (the "Selling Securityholder") of Registrable
Securities hereby elects to include in the Shelf Registration Statement the
Registrable Securities beneficially owned by it and listed below in Item (3).
The undersigned, by signing and returning this Notice and Questionnaire, agrees
to be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire and the Registration Rights
Agreement, including, without limitation, Section 6 of the Registration Rights
Agreement, as if the undersigned Selling Securityholder were an original party
thereto.

         Upon any sale of Registrable Securities pursuant to the Shelf
Registration Statement, the Selling Securityholder will be required to deliver
to the Partnership and Trustee the Notice of Transfer set forth in Appendix A to
the prospectus and as Exhibit B to the Registration Rights Agreement. The
Selling Securityholder hereby provides the following information to the
Partnership and represents and warrants that such information is accurate and
complete:

<PAGE>

                                  QUESTIONNAIRE

(1)      (a)      Full Legal Name of Selling Securityholder:

         (b)      Full Legal Name of Registered Holder (if not the same as in
                  (a) above) of Registrable Securities Listed in Item (3) below:

         (c)      Full Legal Name of DTC Participant (if applicable and if not
                  the same as (b) above) Through Which Registrable Securities
                  Listed in Item (3) below are Held:

(2)      Address for Notices to Selling Securityholder:

         Telephone:
         Fax:
         Contact Person:

(3)      Beneficial Ownership of Securities:

         Except as set forth below in this Item (3), the undersigned does not
         beneficially own any Securities.

         (a)      Principal amount of Registrable Securities beneficially owned:
                  Title and CUSIP No(s). of such Registrable Securities:

         (b)      Principal amount of Securities other than Registrable
                  Securities beneficially owned:
                  Title and CUSIP No(s). of such other Securities:

         (c)      Principal amount of Registrable Securities that the
                  undersigned wishes to be included in the Shelf Registration
                  Statement:

         (d)      Title and CUSIP No(s). of such Registrable Securities to be
                  included in the Shelf Registration Statement:

(4)      Beneficial ownership of Other Securities of the Partnership:

         Except as set forth below in this Item (4), the undersigned Selling
         Securityholder is not the beneficial or registered owner of any other
         securities of the Partnership, other than the Securities listed above
         in Item (3).

         State any exceptions here:

(5)      Relationships with the Partnership:

         Except as set forth below, neither the Selling Securityholder nor any
         of its affiliates, officers, directors or principal equity holders (5%
         or more) has held any position or office or has had any other material
         relationship with the Partnership (or its predecessors or affiliates)
         during the past three years.

<PAGE>

         State any exceptions here:

(6)      Plan of Distribution:

         Except as set forth below, the undersigned Selling Securityholder
         intends to distribute the Registrable Securities listed above in Item
         (3) only as follows (if at all): Such Registrable Securities may be
         sold from time to time directly by the undersigned Selling
         Securityholder or, alternatively, through underwriters, broker-dealers
         or agents. Such Registrable Securities may be sold in one or more
         transactions at fixed prices, at prevailing market prices at the time
         of sale, at varying prices determined at the time of sale, or at
         negotiated prices. Such sales may be effected in transactions (which
         may involve crosses or block transactions) (i) on any national
         securities exchange or quotation service on which the Registered
         Securities may be listed or quoted at the time of sale, (ii) in the
         over-the-counter market, (iii) in transactions otherwise than on such
         exchanges or services or in the over-the-counter market, or (iv)
         through the writing of options. In connection with sales of the
         Registrable Securities or otherwise, the Selling Securityholder may
         enter into hedging transactions with broker-dealers, which may in turn
         engage in short sales of the Registrable Securities in the course of
         hedging the positions they assume. The Selling Securityholder may also
         sell Registrable Securities short and deliver Registrable Securities to
         close out such short positions, or loan or pledge Registrable
         Securities to broker-dealers that in turn may sell such securities.

         State any exceptions here:

         By signing below, the Selling Securityholder acknowledges that it
         understands its obligation to comply, and agrees that it will comply,
         with the provisions of the Exchange Act and the rules and regulations
         thereunder, particularly Regulation M. In the event that the Selling
         Securityholder transfers all or any portion of the Registrable
         Securities listed in Item (3) above after the date on which such
         information is provided to the Partnership, the Selling Securityholder
         agrees to notify the transferee(s) at the time of the transfer of its
         rights and obligations under this Notice and Questionnaire and the
         Registration Rights Agreement.

         By signing below, the Selling Securityholder consents to the disclosure
         of the information contained herein in its answers to Items (1) through
         (6) above and the inclusion of such information in the Shelf
         Registration Statement and related prospectus. The Selling
         Securityholder understands that such information will be relied upon by
         the Partnership in connection with the preparation of the Shelf
         Registration Statement and related prospectus.

         In accordance with the Selling Securityholder's obligation under
         Section 3(e) of the Registration Rights Agreement to provide such
         information as may be required by law for inclusion in the Shelf
         Registration Statement, the Selling Securityholder agrees to promptly
         notify the Partnership of any inaccuracies or changes in the
         information provided herein that may occur subsequent to the date
         hereof at any time while the Shelf Registration Statement remains in
         effect. All notices hereunder and pursuant to the

<PAGE>

         Registration Rights Agreement shall be made in writing, by
         hand-delivery, first-class mail or air courier guaranteeing overnight
         delivery as follows:

         (i)      To the Partnership:     Park Shaper, Chief Financial Officer
                                          Kinder Morgan Energy Partners, L.P.
                                          One Allen Center
                                          500 Dallas Street, Suite 1000
                                          Houston,  Texas 77002

         (ii)     With a copy to:         Gary Orloff
                                          Bracewell & Patterson, L.L.P.
                                          South Tower Pennzoil Place
                                          711 Louisiana, Suite 2900
                                          Houston, Texas 77002-2718

Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Partnership's counsel, the terms of this Notice and
Questionnaire, and the representations and warranties contained herein, shall be
binding on, shall inure to the benefit of and shall be enforceable by the
respective successors, heirs, personal representatives and assigns of the
Partnership and the Selling Securityholder (with respect to the Registrable
Securities beneficially owned by such Selling Securityholder and listed in Item
(3) above). This Agreement shall be governed in all respects by the laws of the
State of New York.

         IN WITNESS WHEREOF, the undersigned, by authority duly given, has
caused this Notice and Questionnaire to be executed and delivered either in
person or by its duly authorized agent.

Dated:

                                Selling Securityholder
                                (Print/type full legal name of beneficial owner
                                of Registrable Securities)

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

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE PARTNERSHIP'S COUNSEL AT:

<PAGE>

                                                                       EXHIBIT B

                         NOTICE OF TRANSFER PURSUANT TO
                             REGISTRATION STATEMENT

Kinder Morgan Energy Partners, L.P.
c/o Wachovia Bank, National Association
12 East 49th Street, 37th Floor
New York, NY 10017
Attention: Corporate Trust Department

         Re:   Kinder Morgan Energy Partners, L.P. (the "Partnership")
               7.30% Senior Notes due 2033

Dear Sirs:

         Please be advised that ________________ has transferred an aggregate of
$_________ principal amount of the above-referenced 7.30% Senior Notes due 2033
pursuant to an effective Registration Statement on Form S-3 (File No.
333-________) filed by the Partnership.

         We hereby certify that the prospectus delivery requirements, if any, of
the Securities Act of 1933, as amended, have been satisfied and that the
above-named beneficial owner of the Securities is named as a "Selling Holder" in
the prospectus dated [date] or in supplements thereto, and that the aggregate
principal amount of the Securities transferred are the Securities listed in such
prospectus opposite such owner's name.

Dated:

                                         Very truly yours,

                                         (Name)

                                         By:
                                             ----------------------------------
                                             (Authorized Signature)

                                       B-1<PAGE>

                                                                    Exhibit 10.1

                                                 June 19, 2002

Mr. Richard M. Wardrop, Jr.
800 W. Lower Springboro Road
Springboro, Ohio  45066

Dear Dick:

Reference is made to the agreement between us, dated March 1, 2000 ("Prior
Agreement"), setting forth the benefits to be provided to you in the event of
the termination of your employment upon the circumstances therein specified.
Upon your execution of a counterpart of this letter, the Prior Agreement shall
be deemed amended and, as so amended, is restated in its entirety to read as
hereinafter set forth.

AK Steel Corporation ("AKS" or "Company"), since its formation, has established
itself as a strong competitor in the steel industry. Continuity of the
management of AKS is a critical factor to the continued growth and success of
AKS. As an executive officer of AKS, you will have the opportunity as outlined
in Section A ("Severance Section") of this Executive Officer Severance Agreement
("Agreement") to receive severance benefits if your employment with the Company
ends under certain circumstances. AKS provides this severance benefits
opportunity because the Board of Directors ("Board") of AK Steel Holding
Corporation ("Holding"), of which AKS is a wholly-owned subsidiary, believes it
is in the best interest of Holding and AKS to reinforce and encourage the
continued attention and dedication of executive officers to their assigned
duties.

As an executive officer of AKS, you will be involved in decision-making
processes in your area of responsibility which involve AKS' proprietary and
confidential information. You will also have access and exposure to other
confidential competitive AKS information. Therefore, because of your involvement
with and access to proprietary and confidential information and in exchange for
AKS' agreement to provide you with the severance benefits opportunities set out
in this Agreement, you agree to be bound by the executive responsibilities set
forth in Section B of this Agreement ("Executive Responsibilities Section").

This Agreement establishes time limits for bringing claims for severance
benefits under this Agreement ("Severance Claims") and any claims or
controversies arising out of or relating to your employment relationship with
AKS or the termination of that relationship ("Employment Claims"), excluding
claims for workers' compensation and unemployment

<PAGE>

compensation benefits and excluding the Company's right to seek injunctive or
other equitable relief to enforce the terms of the Executive Responsibilities
Section. The Agreement also provides that Severance Claims and Employment Claims
must be resolved through the arbitration process set forth in this Agreement.

A.   Severance

     1.   Providing of Severance Benefits

          Holding shall cause AKS to provide and AKS shall provide to you the
          benefits set forth in the Severance Section if your employment with
          AKS (including for the purposes hereof, its subsidiaries and
          Affiliates, as hereinafter defined) is terminated during the term of
          the Severance Section as provided herein.

     2.   Purpose

          The Severance Section establishes severance benefits opportunities
          relating to the termination of your employment with AKS for reasons
          other than: (i) your retirement; (ii) your becoming totally and
          permanently disabled under the AKS long-term disability plan or
          policy; or (iii) your death. The Severance Section supersedes any and
          all prior severance agreements or severance provisions within
          agreements with AKS or any predecessor business, as well as all other
          AKS severance plans, policies and practices, except to the extent
          incorporated or restated herein. Subject to the foregoing, neither the
          termination of your employment nor anything contained in the Severance
          Section shall have any affect upon your rights under (i) any
          tax-qualified "pension benefit plan", as such term is defined in the
          Employee Retirement Income Security Act of 1974, as amended ("ERISA");
          (ii) any "welfare benefit plan" as defined in ERISA, including by way
          of illustration and not limitation, any medical, surgical or
          hospitalization benefit coverage or long-term disability benefit
          coverage; or (iii) any non-qualified deferred compensation
          arrangement, including by way of illustration and not limitation, any
          non-qualified pension plan or deferred compensation plan.

     3.   Termination of Employment

          The date upon which the termination of your employment becomes
          effective is hereinafter referred to as the "Date of Termination." The
          period between the date of notice of termination and the Date of
          Termination is referred to as the "Notice Period." AKS may relieve you
          of your employment duties upon the giving of any notice of termination
          or at any time during any Notice Period; provided however, during such
          Notice Period or the balance thereof, you shall continue to receive
          your full salary

                                       2

<PAGE>

          and Employment Benefits (as defined in Section A(6)(b) below). This
          Severance Section provides you with benefits in the event of the
          termination of your employment during the term of the Severance
          Section in accordance with the following paragraphs.

          (a)  Involuntary Termination Without Cause

               AKS may terminate your employment without Cause (as defined in
               Section A(3)(b) below), but only upon written notice given to you
               by AKS not less than thirty (30) days prior to the Date of
               Termination. From and after the Date of Termination, pursuant to
               this Section A(3)(a), you shall be entitled to those benefits
               provided under Sections A(4) and A(8) as applicable.

          (b)  Involuntary Termination For Cause

               AKS may terminate your employment for Cause, but only upon
               written notice, specifying the facts or circumstances
               constituting such Cause, which notice may be given on or at any
               time prior to the Date of Termination. For the purposes of this
               Section A(3)(b), "Cause" means a willful engaging in gross
               misconduct materially and demonstrably injurious to AKS.
               "Willful" means an act or omission in bad faith and without
               reasonable belief that such act or omission was in or not opposed
               to the best interests of AKS. From and after your Date of
               Termination, pursuant to this Section A(3)(b), you shall only be
               entitled to those benefits provided under Section A(7).

          (c)  Voluntary Termination Without Good Reason

               You may voluntarily terminate your employment without Good Reason
               (as defined in Section A(3)(d) below), but only upon written
               notice given to AKS by you not less than thirty (30) days prior
               to the Date of Termination. From and after the Date of
               Termination, pursuant to this Section A(3)(c), you shall be
               entitled to those benefits provided under Sections A(7) and A(8)
               as applicable.

          (d)  Voluntary Termination For Good Reason

               You may voluntarily terminate your employment for Good Reason (as
               herein defined), but only upon written notice, specifying the
               facts or circumstances constituting such Good Reason, given to
               AKS by you at least thirty (30) days prior to the Date of
               Termination and not more than sixty (60) days following the

                                       3

<PAGE>

               occurrence of the circumstances constituting such Good Reason.
               For the purposes of this Section A(4)(d), "Good Reason" shall
               mean the occurrence, without your express written consent, of any
               of the following circumstances (unless, in the case of clauses
               (i), (v), (vi), (vii) or (viii) below, such circumstances are
               fully corrected prior to the Date of Termination specified in the
               notice of termination):

               (i)  the assignment to you of any duties inconsistent with your
                    position within AKS or a significant adverse alteration in
                    the nature or status of the responsibilities of your
                    employment;

               (ii) a reduction by AKS in your annual base salary, but no such
                    reduction shall be effective with respect to your benefits
                    under Section A(4) if you have given timely notice pursuant
                    to this Section A(3)(d);

              (iii) a requirement by AKS that you be based anywhere other than
                    the principal executive offices of AKS except for required
                    travel on AKS business to an extent substantially consistent
                    with customary business travel obligations;

               (iv) the failure of AKS to pay to you any portion of your
                    compensation within seven (7) days of the date such
                    compensation is due;

               (v)  the failure of AKS, at any time within 24 months following
                    the occurrence of a Change In Control (as defined in Section
                    A(6)(c) hereof), to continue in effect any compensation plan
                    in which you participated immediately prior to such Change
                    In Control, which plan is material to your total
                    compensation, unless an equitable arrangement (embodied in
                    an ongoing substitute or alternative plan) has been made
                    with respect to such plan, or the failure of AKS to continue
                    your participation in such compensation plan (or in such
                    substitute or alternative plan) on a basis not materially
                    less favorable to you, both in terms of the amount of
                    benefits provided and the level of your participation
                    relative to other participants, than that existing
                    immediately prior to such Change In Control;

               (vi) any material reduction, except to the extent permitted by
                    Section A(6)(b) hereof, in your Employment Benefits;

                                       4

<PAGE>

              (vii) the failure of AKS to obtain a satisfactory agreement from
                    any successor corporation to assume and agree to perform
                    this Agreement, as contemplated in Section D(5) hereof; or

             (viii) any purported termination of your employment by AKS that
                    is not effected in compliance with the provisions of
                    Sections A(3)(a) or A(3)(b) hereof, as the case may be.

               If you give notice of termination for Good Reason, then, during
               the Notice Period (which shall not exceed 60 days), your full
               base salary and Employment Benefits shall be the same as in
               effect prior to the occurrence of the circumstances constituting
               such Good Reason, subject to the right of AKS to make changes to
               your Employment Benefits to the extent permitted by Section
               A(6)(b). From and after the Date of Termination, pursuant to this
               Section A(3)(d), you shall be entitled to those benefits provided
               under Sections A(4) and A(8) as applicable.

          (e)  Voluntary Termination After Change In Control

               You may voluntarily terminate your employment, with or without
               Good Reason, during the thirty (30)-day period immediately
               following the date on which a Change In Control occurs, but only
               upon written notice given to AKS by you during such thirty
               (30)-day period specifying the Date of Termination which, unless
               otherwise agreed by you and AKS, shall not be less than thirty
               (30) days nor more than sixty (60) days following such Change In
               Control. From and after the Date of Termination, pursuant to this
               Section A(3)(e), you shall be entitled to those benefits provided
               under Sections A(4) and A(8) as applicable.

     4.   Special Severance Benefits

          (a)  If your employment with AKS is involuntarily terminated by AKS
               without Cause in accordance with Section A(3)(a), you voluntarily
               terminate your employment for Good Reason in accordance with
               Section A(3)(d), or you voluntarily terminate your employment
               after a Change In Control in accordance with Section A(3)(e),
               then the Company will pay you, regardless of whether or not you
               execute a release of claims, severance pay equal to your base
               salary, less applicable tax withholdings and deductions, for a
               period of six (6) months from your Date of Termination. The
               aggregate base salary payable in accordance with this Section
               A(4)(a) shall be paid to you in a single, undiscounted, lump sum
               payment within ten (10) days following the Date of Termination

                                       5

<PAGE>

               unless you have requested, in writing, at any time prior to your
               Date of Termination to receive such payments of your base salary
               in regular monthly payments.

          (b)  If your employment with AKS is involuntarily terminated by AKS
               without Cause in accordance with Section A(3)(a), you voluntarily
               terminate your employment for Good Reason in accordance with
               Section A(3)(d), or you voluntarily terminate your employment
               after a Change In Control in accordance with Section A(3)(e), and
               you sign a release of all claims against Holding, AKS, and AKS'
               subsidiaries and Affiliates which is acceptable to AKS ("Release
               of Claims"), then you shall be entitled, in addition to those
               benefits provided for at Section A(4)(a), to the following
               benefits, less applicable tax withholdings and deductions:

               (i)  Severance pay equal to your base salary shall be paid for an
                    additional period beyond the six (6) month period paid
                    pursuant to Section A(4)(a) of (1) thirty (30) months, if
                    the notice of your termination is given within 24 months
                    after the occurrence of a Change In Control or (2) eighteen
                    (18) months, if the notice of your termination is given at
                    any time other than within 24 months after the occurrence of
                    a Change In Control (hereafter, the total thirty-six (36)
                    month period or twenty-four (24) month period, as
                    applicable, under Sections A(4)(a) and A(4)(b)(i) will be
                    referred to as "Severance Pay Period"). The aggregate thirty
                    (30) months or eighteen (18) months of additional base
                    salary payable in accordance with this Section A(4)(b)(i)
                    shall be paid to you in a single, undiscounted, lump sum
                    payment within ten (10) days following the effective date of
                    the Release of Claims unless you have requested, in writing,
                    at any time prior to the effective date of the Release of
                    Claims to receive payments of your base salary in regular
                    monthly payments.

               (ii) (1) Within ten (10) days following the effective date of the
                    Release of Claims, you will receive a lump-sum payment equal
                    in amount to the result obtained by application of the
                    following formula: P = (x) times (y) times (z), where:

                    P        =        the lump-sum payment;

                    (x)      =        twelve times your monthly base salary;

                                       6

<PAGE>

                    (y)      =        the fraction obtained by dividing your
                                      annual incentive compensation which
                                      was paid or is payable to you for
                                      the immediately preceding calendar
                                      year by your actual base salary
                                      for such year; and

                    (z)      =        3.0 (if the notice of your termination is
                                      given within 24 months after the
                                      occurrence of a Change In Control,
                                      or 2.0 (if the notice of your
                                      termination is given at any time
                                      other than within 24 months after
                                      the occurrence of a Change in Control).

                    (2)  Within ten (10) days following the later of the
                         effective date of the Release of Claims or the date
                         that payment is made to active employees of AKS, you
                         shall receive a pro-rata payment of the annual
                         incentive payment you would have received for the year
                         in which your Date of Termination occurs. Such payment
                         shall be: (A) pro-rated based upon your Date of
                         Termination and (B) determined without giving effect to
                         any contrary provision of the applicable incentive
                         plan, and without giving effect to any reduction in
                         such annual incentive payment that could result from
                         any amendment to or termination of such annual
                         incentive plan or a reduction in your level of
                         participation in connection with a Change In Control.
                         For purposes of this calculation, a termination for
                         Good Reason under Section A(3)(d) or after a Change In
                         Control under Section A(3)(e) shall not be considered a
                         voluntary termination under the annual incentive plan.
                         If the plan is amended or terminated subsequent to a
                         Change In Control such that a pro-rated payment cannot
                         be calculated, then you shall receive the maximum
                         payment, at your level of participation prior to the
                         Change In Control, pro-rated based upon your Date of
                         Termination.

                    (3)  Without giving effect to any contrary provision of the
                         applicable long-term incentive plan, you shall receive:
                         (A) payment for the prior year's

                                       7

<PAGE>

                            performance under the plan at the same time as all
                            other participants receive such payments, but no
                            earlier than the effective date of the Release of
                            Claims, and (B) an additional amount equal to the
                            amount in (A) within sixty (60) days following the
                            later of the effective date of the Release of Claims
                            or your Date of Termination. If the amount in (A)
                            has not yet been paid as of the later of the
                            effective date of the Release of Claims or your Date
                            of Termination, you shall receive an amount equal to
                            two times the amount in (A) at the next long-term
                            incentive payment date or within sixty (60) days of
                            your Date of Termination, whichever is earlier. For
                            purposes of this calculation, a termination for Good
                            Reason under Section A(3)(d) or after a Change In
                            Control under Section A(3)(e) shall not be
                            considered a voluntary termination under the
                            long-term incentive plan. Such payment shall be
                            determined without giving effect to any reduction in
                            such long-term incentive payment that could result
                            from any amendment to or termination of such plan or
                            a reduction in your level of participation in
                            connection with a Change In Control. If the plan is
                            amended or terminated such that no calculation of
                            the payment in (A) above for the prior year's
                            performance can be made, then you shall receive
                            twice the maximum payment in cash, at your level of
                            participation prior to the Change In Control, in
                            full payment of the amounts in (A) and (B) above.

              (iii) Notwithstanding any provision to the contrary in the AK
                    Steel Holding Corporation Stock Incentive Plan as amended or
                    any other similar plan of AKS or Holding (each, a "Plan"),
                    or under the terms of any grant, award agreement or form for
                    exercising any right under the Plan, you shall have the
                    right:

                    (1)  to exercise any stock option awarded to you under the
                         Plan without regard to any waiting period required by
                         the Plan or award agreement (but subject to a minimum
                         six month holding period from the date of award and any
                         restrictions imposed by law) from the effective date of
                         the Release of Claims until the first to occur of the
                         third

                                        8

<PAGE>

                         anniversary of your Date of Termination or the date the
                         award expires by its terms, and

                    (2)  to the absolute ownership of any shares of stock
                         granted to you under the Plan, free of any restriction
                         on your right to transfer or otherwise dispose of the
                         shares (but subject to a minimum six month holding
                         period from the date of grant and any restrictions
                         imposed by law), regardless of whether entitlement to
                         the shares is contingent or absolute by the terms of
                         the grant; and Holding and AKS shall take such action
                         as soon as practicable after the effective date of the
                         Release of Claims as is necessary or appropriate to
                         eliminate any restriction on your ownership of, or your
                         right to sell or assign, any such shares; or AKS shall
                         pay you, in exchange for such shares, no later than ten
                         (10) days after the effective date of the Release of
                         Claims, an amount in cash equal to the greatest
                         aggregate market value of the shares during the Notice
                         Period.

                    You agree, for a period of six (6) months after your
                    Termination Date, to continue to comply with all AKS and
                    Holding policies and directives related to trading in
                    Holding stock which were in effect prior to your notice of
                    termination. If your compliance with such policies and
                    directives precludes you from exercising any stock options
                    or selling any shares of stock described in paragraphs (1)
                    and (2) above for a period of more than sixty (60) days from
                    the first day of your Notice Period, then AKS will pay you
                    in cash the difference between the average share price
                    during the Notice Period and, if less, the actual share
                    price received by you at the time of sale provided you have
                    completed such sale within sixty (60) days from your first
                    opportunity to do so. The average sale price during the
                    Notice Period will be determined by averaging the highest
                    share price and the lowest share price during the Notice
                    Period. Any such differential payment will be paid to you
                    within thirty (30) days after you provide written notice to
                    AKS requesting such payment, but no earlier than the
                    effective date of the Release of Claims. Such notice is to
                    be directed to the attention of the Secretary of AKS and
                    contain the relevant stock transaction dates and actual
                    share price information.

                                       9

<PAGE>

               (iv) During the Severance Pay Period, your Employment Benefits
                    shall be continued, subject to the right of AKS to make any
                    changes to your Employment Benefits permitted in accordance
                    with Section A(6)(b); provided, however, that you shall not:

                    (1)  accumulate vacation pay for periods after the Date of
                         Termination;

                    (2)  qualify during the Severance Pay Period for sickness
                         and accident, salary continuation, and long-term
                         disability plan benefits if you were not eligible for
                         these benefits on the Date of Termination;

                    (3)  be eligible to continue to make contributions to any
                         Internal Revenue Code ss. 401(k) plan maintained by AKS
                         or qualify for a share of any employer contribution
                         made to any tax-qualified defined contribution plan; or

                    (4)  be eligible to accumulate service for pension plan
                         purposes; and

                    provided, further, that if, during the Severance Pay Period,
                    you are eligible to receive life insurance, medical,
                    hospital and other health insurance benefits ("Life and
                    Health Insurance") either based upon employment with another
                    employer or based upon benefits available to you as a
                    retiree of another employer, the obligations of AKS to
                    continue to provide you with Life and Health Insurance shall
                    be limited solely to those benefits necessary to assure
                    that, together with the corresponding benefits provided to
                    you under any other plans, you receive total benefits
                    comparable to those to which you were entitled at the Date
                    of Termination. You must report to the Vice President, Human
                    Resources of AKS your eligibility for another employer's
                    active or retiree Life and Health Insurance within ten (10)
                    days after becoming eligible.

               (v)  You shall qualify for full COBRA health benefit continuation
                    coverage upon the expiration of the Severance Pay Period.

                                       10

<PAGE>

               (vi) You shall be entitled, at no cost to you, to up to twelve
                    (12) months of full executive outplacement assistance with
                    an agency selected by AKS.

          (c)  You shall receive payment of your benefit under the AK Steel
               Corporation Executive Minimum and Supplemental Retirement Plan
               (the "SERP") in accordance with the provisions of the SERP.
               Notwithstanding the foregoing, if your employment with AKS is
               involuntarily terminated by AKS without Cause in accordance with
               Section A(3)(a), or if at any time after a Change In Control you
               voluntarily terminate your employment with AKS (or any Affiliate,
               any successor of AKS, or any entity which as a result of the
               completion of the transactions causing a Change In Control
               becomes affiliated with AKS) for Good Reason in accordance with
               Section A(3)(d), or after a Change In Control in accordance with
               Section A(3)(e), within ten (10) days following the later of the
               effective date of the Release of Claims or your Date of
               Termination you will receive, in addition to any benefits you may
               be entitled to under Sections A(4)(a) and A(4)(b) above, a lump
               sum payment in an amount equal to the benefit you would be
               entitled to under the SERP determined as if (i) your Vesting Date
               (as defined under the SERP) had occurred prior to the Date of
               Termination (if it has not already occurred as of the Date of
               Termination) and (ii) you had attained age 60 prior to the Date
               of Termination (if you have not already attained age 60 as of the
               Date of Termination). The amount of any such additional benefit
               shall be calculated as of the Date of Termination in accordance
               with the benefit formula under the SERP (as if you had attained
               age 60, or your actual age if greater), and the payment of such
               benefit shall be in lieu of any payment under the SERP.

          (d)  You shall not be required to mitigate the amount of any payment
               provided for in this Section A(4) by seeking other employment or
               otherwise, nor shall the amount of any payment or benefits
               provided for in this Section A(4) be reduced by any compensation
               or benefits earned by you as the result of employment by another
               employer (except as expressly provided in Section A(4)(b)(iv)
               above) or by retirement benefits, or be offset against any amount
               claimed to be owed by you to AKS or any of its Affiliates or
               successors.

          (e)  For purposes of calculating any amount due under this Agreement,
               the effect of any deferral of income shall be disregarded and all
               sums due shall be calculated as if no such deferral had been
               made.

                                       11

<PAGE>

     5.   Certain Tax Matters

          (a)  If any of the payments provided to you pursuant to Section A(4)
               hereof (the "Contract Payments") or any other portion of the
               Total Payments(as defined below) becomes subject at any time to
               the tax (the "Excise Tax") imposed by section 4999 of the
               Internal Revenue Code of 1986, as amended (the "Code"), AKS shall
               pay to you at the time specified in Section A(5)(b) below, an
               additional amount (the "Gross-Up Payment") such that the net
               amount retained by you, after deduction of the Excise Tax on any
               Contract Payments and/or other Total Payments, any federal and
               state and local income tax and Excise Tax upon the payment(s)
               provided for by this paragraph, and any interest, penalties or
               additions to tax payable by you with respect thereto, shall be
               equal to the present value of the Contract Payments and such
               other Total Payments. For purposes of determining whether any of
               the foregoing payments will be subject to the Excise Tax and the
               amount of such Excise Tax, (i) any other payments or benefits
               received or to be received by you in connection with a Change In
               Control or the termination of your employment (whether such
               payments are Contract Payments or are payable pursuant to the
               terms of any other plan, arrangement or agreement with AKS,
               Holding or any of their respective Affiliates or successors, any
               person whose actions result in a Change In Control or any
               corporation which, as a result of the completion of the
               transactions causing a Change In Control, will become affiliated
               with AKS or Holding within the meaning of section 1504 of the
               Code (such other payments, together with the Contract Payments,
               the "Total Payments")) shall be treated as "parachute payments"
               within the meaning of section 28OG(b)(2) of the Code, and all
               "excess parachute payments" within the meaning of section
               28OG(b)(1) shall be treated as subject to the Excise Tax, except
               to the extent that, in the opinion of tax counsel selected by
               AKS' independent auditors and acceptable to you ("Tax Counsel"),
               the Total Payments (in whole or in part) do not constitute
               parachute payments, or such excess parachute payments are
               otherwise not subject to the Excise Tax, (ii) the amount of the
               Total Payments that shall be treated as subject to the Excise Tax
               shall be equal to the lesser of (1) the total amount of the Total
               Payments or (2) the amount of excess parachute payments within
               the meaning of sections 28OG(b)(1) (after applying clause (i)
               hereof), and (iii) the value of any noncash benefits or any
               deferred payment or benefit shall be determined by AKS'
               independent auditors in accordance with the principles of
               sections 28OG(d)(3) and (4) of the Code. For purposes of
               determining the amount of the Gross-Up Payment(s), you shall be
               deemed to pay federal

                                       12

<PAGE>

               income taxes at the highest marginal rate of federal income
               taxation applicable to individuals in the calendar year in which
               the Gross-Up Payment(s) is (are) to be made and state and local
               income taxes at the highest marginal rates of taxation applicable
               to individuals as are in effect in the state and locality of your
               residence in the calendar year in which the Gross-Up Payment(s)
               is (are) to be made, net of the maximum reduction in federal
               income taxes that could be obtained from deduction of such state
               and local taxes. In the event that the Excise Tax is subsequently
               determined to be less than the amount taken into account
               hereunder, you shall repay to AKS at the time that the amount of
               such reduction in Excise Tax is finally determined the portion of
               the Gross-Up Payment attributable to such reduction (plus the
               portion of the Gross-Up Payment attributable to the Excise Tax
               and federal and state and local income tax imposed on the
               Gross-Up Payment being repaid by you if such repayment results in
               a federal and state and local income tax deduction), plus
               interest on the amount of such repayment at the applicable
               federal rate (as defined in section 1274(d) of the Code). In the
               event that the Excise Tax is determined to exceed the amount
               taken into account hereunder (including by reason of any payment
               the existence or amount of which cannot be determined at the time
               of the Gross-up Payment), AKS shall make an additional gross-up
               payment in respect of such excess (plus any interest payable with
               respect to such excess) at the time that the amount of such
               excess is finally determined.

          (b)  The Gross-up Payment(s) provided for in Section A(5)(a) above
               shall be made within ten (10) days following the later of the
               effective date of the Release of Claims or the Date of
               Termination or, with respect to any portion of the Excise Tax not
               determined on or before the later of such dates to be due, upon
               the imposition of such portion of the Excise Tax; provided,
               however, that if the amounts of such payments cannot be finally
               determined on or before the later of such dates, AKS shall pay to
               you within ten (10) days of the later of such dates an estimate,
               as determined in good faith by AKS, of the minimum amount of such
               payments and shall pay the remainder of such payments (together
               with interest at the rate provided in section 1274(b)(2)(B) of
               the Code) as soon as the amount thereof can be determined but in
               no event later than the thirtieth day after the later of such
               dates. In the event that the amount of the estimated payments
               exceeds the amount subsequently finally determined to have been
               due, such excess shall constitute a loan by the Corporation to
               you, payable on the tenth day after demand by the Corporation
               (together with interest at the rate provided in section
               1274(b)(2)(B) of the Code).

                                       13

<PAGE>

          (c)  In the event of any change in, or further interpretation of,
               sections 28OG or 4999 of the Code and the regulations promulgated
               thereunder, you shall be entitled, by written notice to AKS, to
               request an opinion of Tax Counsel regarding the application of
               such change to any of the foregoing, and AKS shall use its best
               efforts to cause such opinion to be rendered as promptly as
               practicable. All fees and expenses of Tax Counsel incurred in
               connection with this Agreement shall be borne by AKS

                                       14

<PAGE>

     6.   Definitions

          For purposes of this Agreement the following terms shall have the
          following meanings:

          (a)  "Affiliate" of any specified person means (i) any other person
               which, directly or indirectly, is in control of, is controlled by
               or is under common control with such specified person or (ii) any
               other person who is a director or officer (1) of such specified
               person, (2) of any subsidiary of such specified person or (3) of
               any person described in clause (i) above. For purposes of this
               definition, control of a person means the power, direct or
               indirect, to direct or cause the direction of the management and
               policies of such person whether by contract or otherwise and the
               terms "controlling" and "controlled" have meanings correlative to
               the foregoing.

          (b)  "Employment Benefits" means the employee benefit plans, policies,
               and practices of AKS (excluding any severance policies and
               practices other than this Agreement) that generally apply to
               other salaried employees or managers in accordance with the terms
               thereof as they may be amended from time to time. Your Employment
               Benefits may be modified from time to time after the date hereof
               without violation of this Agreement if the changes apply
               generally to other members of management of AKS.

          (c)  "Change In Control" means the occurrence of any of the following
               events:

               (i)  any "Person" (as such term is used in Sections 13(d) and
                    14(d) of Securities Exchange Act of 1934, as amended (the
                    "Exchange Act"), is or becomes the beneficial owner (as
                    defined in Rules 13d-3 and 13d-5 under the Exchange Act,
                    except that a Person shall be deemed to have "beneficial
                    ownership" of all shares that any such Person has the right
                    to acquire, whether such right is exercisable immediately or
                    only after the passage of time), directly or indirectly, of
                    more than 40% of the total voting power of the Voting Equity
                    Interests of Holding; provided, however, that a Person shall
                    not be deemed the "beneficial owner" of shares tendered
                    pursuant to a tender or exchange offer made by that Person
                    or any Affiliate of that Person until the tendered shares
                    are accepted for purchase or exchange;

               (ii) during any period of two consecutive years, individuals who
                    at the beginning of such period constituted the Board

                                       15

<PAGE>

                    (together with any new directors whose election by such
                    Board, or whose nomination for election by the shareholders
                    of Holding, as the case may be, was approved by a vote of
                    66-2/3% of the directors then still in office who were
                    either directors at the beginning of such period or whose
                    election or nomination for election was previously so
                    approved) cease for any reason to constitute a majority of
                    the Board then in office; or

              (iii) Holding fails to own 100% of the outstanding stock of AKS;
                    provided, however, that it shall not be deemed a Change in
                    Control if Holding merges into AKS except that, in such
                    case, AKS shall be substituted for Holding for purposes of
                    this definition of "Change in Control" and this clause (iii)
                    shall not longer be applicable.

          (d)  "Voting Equity Interests" of a corporation means all classes of
               stock then outstanding and normally entitled to vote in the
               election of directors or other governing body of such
               corporation.

     7.   Benefits Upon Voluntary Termination or Termination for Cause

          Upon your Date of Termination for Cause in accordance with Section
          A(3)(b) or your Date of Termination without Good Reason in accordance
          with Section A(3)(c), you will not be entitled to benefits under
          Section A(4) of this Agreement, but you nevertheless shall be eligible
          for any benefits provided in accordance with the plans and practices
          of AKS which are applicable to employees generally.

     8.   Benefits Based on Age and Service

          Notwithstanding any provision in this Agreement to the contrary, if
          your employment with AKS terminates for any reason under Section A(3)
          other than involuntary termination for Cause under Section A(3)(b);
          and if on your Date of Termination (i) you have attained at least age
          50, (ii) you are a participant in the AK Steel Corporation Executive
          Minimum and Supplemental Retirement Plan ("SERP") and you are vested
          in your SERP benefit, (iii) the sum of your age and your years of
          service with AKS equals or exceeds 65, and (iv) you execute a Release
          of Claims (as defined in Section A(4)(b)); then the following
          provisions shall be applicable, effective as of the effective date of
          the Release of Claims:

          (a)  If you are not otherwise eligible for retiree medical insurance
               coverage from AKS, AKS shall make available to you retiree
               medical insurance coverage, the benefits and duration of which

                                       16

<PAGE>

               shall at least be comparable to the benefits and duration of the
               retiree medical insurance coverage generally available to retired
               salaried employees of AKS; provided however, if at any time on or
               after your Date of Termination you are eligible to receive
               retiree medical insurance coverage based upon benefits available
               to you as a retiree of another employer, the obligations of AKS
               to continue to provide you with retiree medical insurance
               coverage under this Section A(8) shall be limited solely to those
               benefits necessary to assure that, together with the
               corresponding benefits provided to you under any other plan, you
               receive total benefits comparable to those to which you were
               entitled on the effective date of the Release of Claims. You must
               report to the Vice President, Human Resources of AKS your
               eligibility for another employer's retiree medical insurance
               coverage. Benefits provided under this Section A(8) may be
               modified from time to time after the date hereof without
               violation of this Agreement if the changes are consistent with
               changes that generally apply to the retiree medical coverage
               available to other salaried employees of AKS.

          (b)  Notwithstanding any provisions to the contrary in the AK Steel
               Holding Corporation Stock Incentive Plan, the AK Steel
               Corporation Annual Management Incentive Plan, the AK Steel
               Corporation Long-Term Performance Plan, the AK Steel Corporation
               Executive Deferred Compensation Plan, and the AK Steel
               Corporation Supplemental Thrift Plan (collectively, the "Plans"),
               your termination of employment hereunder shall be considered your
               "retirement" solely for purposes of determining the amount of any
               benefits, and the method of payment of any benefits, under the
               Plans.

B.   Executive Responsibilities

     1.   Confidentiality

          (a)  During your employment with AKS and subsequent to the termination
               of that employment for any reason, you will not disclose to any
               person or use for the benefit of yourself or any other person or
               entity any confidential or proprietary information of AKS without
               the prior written consent of the Vice President, Human Resources
               of AKS. Upon your termination of employment with the Company for
               any reason, you will immediately deliver to AKS any and all AKS
               information which you have in your possession or control,
               including but not limited to, information about AKS' practices,
               procedures, operations, trade secrets, customer lists, financial
               matters, or product marketing. You will deliver this

                                       17

<PAGE>

               information to AKS in whatever format in which you have it,
               including but not limited to paper, disk, hard drive, tape,
               electronic storage, Palm Pilot or other PDA, or CD-ROM. You will
               also deliver to AKS any and all AKS property, including but not
               limited to, company credit cards, property access keys and cards,
               planners, day books, customer lists, laboratory notebooks,
               cellular/digital phones, computers, software, and Palm Pilots (or
               other PDA).

          (b)  You also agree that you remain bound by the Employee Invention
               and Confidential Information Agreement which you executed.

     2.   Covenant Not to Compete

               In exchange for AKS' agreement to provide you with the severance
               benefits opportunities set out in this Agreement (including the
               opportunity to receive six months of severance pay set out at
               Section A(4)(a) of the Agreement) and the compensation provided
               to you as an executive officer, you agree that, during your
               employment at AKS and for a period of one year following the
               termination of your employment with AKS for any reason, you agree
               not to be employed by, or serve as a director of or consultant or
               advisor to, any business engaged directly or indirectly in the
               melting, hot rolling, cold rolling, or coating of carbon,
               electrical or stainless steel, or in the manufacturing of steel
               pipe and tubing products, or that is reasonably likely to engage
               in such business during the one-year period following the date
               when your employment with AKS terminates; provided, however, if a
               Change In Control occurs, the foregoing restriction applicable to
               the one year period following your Date of Termination shall
               lapse and be null and void.

     3.   Non-Solicitation and Non-Disparagement

          (a)  During your employment at AKS and for a period of five years
               following the termination of your employment with AKS for any
               reason, you agree that you will not solicit directly or cause or
               encourage another person or entity to solicit any employee of the
               Company or its subsidiaries or Affiliates for employment by any
               entity which is engaged directly or indirectly in the melting,
               hot rolling, cold rolling, or coating of carbon, electrical or
               stainless steel, or in the manufacturing of steel pipe and tubing
               products or that is reasonably likely to engage in such business
               during the one year period following your termination of
               employment.

          (b)  You also agree that, during your employment with AKS and
               subsequent to the termination of that employment for any reason,

                                       18

<PAGE>

               you will not disparage the Company or its subsidiaries or its
               Affiliates, operations, products, employees, officers, or
               directors.

                                       19

<PAGE>

     4.   Conflicts of Interest

          You agree for so long as you are employed by AKS to avoid dealings and
          situations which would create a conflict of interest with AKS. In this
          regard, you agree to comply with the AKS policy regarding conflicts of
          interest. You further agree to immediately report to the Vice
          President, Human Resources of AKS any conflict or potential conflict
          of interest with AKS.

     5.   Injunctive Relief

          You recognize and acknowledge that your involvement in decision making
          processes which involve AKS' proprietary and confidential information
          and your access to confidential competitive information will be such
          that, in the event of a breach of the Confidentiality (Section B(1))
          and Covenant Not to Compete (Section B(2)) provisions of this
          Agreement (hereafter referred to together as "Confidentiality and CNC
          Provisions"), monetary damages would be an insufficient remedy for
          AKS, and that AKS would be entitled to injunctive relief in the
          appropriate court to restrain the breach and otherwise enforce the
          Confidentiality and CNC Provisions without proof of actual damages.

C.   Time Limits for Bringing Claims; Arbitration of Claims

     1.   Time Within Which Severance Claims and Employment Claims Must Be
          Brought

          Severance Claims must be filed within one (1) year from the Date of
          Termination. Employment Claims must be filed within one (1) year after
          the occurrence of the action or actions upon which the claim is based.
          You agree to waive any statute of limitations to the contrary.

     2.   Arbitration of Severance Claims and Employment Claims

          Severance Claims and Employment Claims shall be submitted to final and
          binding arbitration, subject to the Rules of Arbitration attached to
          this Agreement as Exhibit A. Employment Claims subject to arbitration
          include, but are not limited to, allegations of unlawful
          discrimination based on race, sex, religion, age, national origin,
          disability, and retaliation and any other claim of a violation of a
          right created or protected by local, state, or federal law.

          You and AKS agree that it is the intention of you and AKS to avoid
          litigation in court of Severance Claims and Employment Claims and you
          and AKS, therefore, specifically waive any right you or AKS would

                                       20

<PAGE>

          otherwise have to have Severance and Employment Claims decided by a
          judge or jury. You understand that this Agreement does not limit your
          right to file a charge with or to assist any administrative agency,
          including the Equal Employment Opportunity Commission and the National
          Labor Relations Board. However, you further agree that, should any
          person, organization, or other entity file, charge, claim, sue, or
          cause or permit to be filed any civil action, suit or legal proceeding
          involving those matters which you have agreed to submit to final and
          binding arbitration, you will not seek or accept any personal relief
          in any such proceeding.

          You and AKS agree that this agreement to arbitrate and the arbitration
          award are enforceable under and subject to the Federal Arbitration
          Act, 9 U.S.C. ss. 1 et. seq. You and AKS consent that judgment upon
          the arbitration award may be entered in an appropriate court of
          competent jurisdiction located in Butler County, Ohio or in the United
          States District Court for the Southern District of Ohio.

D.   Miscellaneous

     1.   Term

          The Agreement is effective as of June 19, 2002 ("the Effective Date").
          The term of this Agreement is five (5) years, except that the term of
          Sections B, C, D, and Exhibit A are indefinite. The Agreement shall be
          automatically renewed annually from and after the Effective Date,
          unless written notice of non-renewal is given by you or by AKS at
          least ninety (90) days prior to the expiration of the term, including
          any extension thereof.

     2.   Notice

          Notices required or permitted under this Agreement shall be in writing
          and shall be deemed to have been given when personally delivered or
          mailed by United States certified mail, return receipt requested,
          postage prepaid, addressed to the intended recipient at its or his or
          her last known address. Notices to AKS shall be marked for the
          attention of the Vice President, Human Resources of AKS.

     3.   No Contract of Employment

          Nothing in this Agreement shall be construed as a contract or promise
          of continued employment with AKS, AKS' subsidiaries or Affiliates. As
          an "at-will" employee of AKS, your employment may be terminated by you
          or AKS at any time.

                                       21

<PAGE>

     4.   Modification; Waiver

          No provision of this Agreement may be waived, modified or discharged
          except pursuant to a written instrument signed by you and an
          authorized officer of AKS.

     5.   Successors; Binding Agreement

          (a)  AKS and Holding will require any successor (whether direct or
               indirect, by purchase, merger, consolidation or otherwise) to all
               or substantially all of the business and/or assets of AKS to
               expressly assume and agree to perform this Agreement in the same
               manner and to the same extent that AKS would be required to
               perform it if no such succession had taken place.

          (b)  This Agreement shall inure to the benefit of and be enforceable
               by you and your personal or legal representatives, executors,
               administrators, successors, heirs, distributees, devisees and
               legatees. If you should die while any amount would still be
               payable to you hereunder had you continued to live, all such
               amounts, unless otherwise provided herein, shall be paid in
               accordance with the terms of this Agreement to your devisee,
               legatee or other designee, or, if there is no such devisee,
               legatee or designee, to your estate.

     6.   Counterparts

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

     7.   Severability; Validity

          The provisions of the Agreement (including Exhibit A) are severable
          and the validity or unenforceability of any provision shall not effect
          the validity or enforceability of any other provision, with the
          following exception. If a court rules that Section C(2)'s provisions
          regarding the agreement to waive the right to have Severance Claims or
          Employment Claims decided by judge or jury are unenforceable, any and
          all rights created by Section C(2) of the Agreement and Exhibit A to
          the Agreement will be voided retroactively, and the proceeds of any
          arbitration award must be returned to the party from which they
          originated.

                                       22

<PAGE>

     8.   Choice of Law; Forum Selection

          This Agreement shall be governed by the laws of the United States and
          the laws of the State of Ohio, both as to interpretation and
          performance. Any action or other legal proceeding not subject to
          arbitration under this Agreement or any action or legal proceeding
          regarding the enforceability of this Agreement shall be brought
          exclusively in an appropriate court of competent jurisdiction located
          in Butler County, Ohio (if the action is brought in state court) or in
          the Southern District of Ohio (if such action is brought in federal
          court). Any action brought within such courts shall not be transferred
          or removed by you to any other state or federal court.

                                                Sincerely,

                                                AK STEEL HOLDING CORPORATION

Accepted and agreed to this _____ day
______________, 2002.                           By:___________________________

__________________________________
Richard M. Wardrop, Jr.                         AK STEEL CORPORATION

                                                By:___________________________

                                       23

<PAGE>

                                    Exhibit A
                                    ---------
                              Rules for Arbitration
                              ---------------------

1.   The arbitration hearing ("Hearing") will take place in Middletown, Ohio,
     unless the parties mutually agree to another location.

2.   The arbitration process will be governed by the National Rules for the
     Resolution of Employment Disputes ("National Rules") of the American
     Arbitration Association ("AAA") except to the extent they are modified by
     the Executive Officer Severance Agreement ("Agreement") and this Exhibit A
     to the Agreement.

3.   Either you or AKS may initiate the arbitration process by filing a written
     demand for monetary or non-monetary relief and notice of intent to
     arbitrate ("Notice") with any regional office of the AAA and paying the
     filing fee as set out in the National Rules. The Notice must be filed
     within the time limits established in Section C(1) of the Agreement. The
     date the Notice is considered "filed" for purposes of Section C(1) of the
     Agreement and this rule is the date the Notice is received in a AAA
     regional office.

4.   You and AKS will share equally any AAA administrative fee other than the
     filing fee. The Company will pay all of the arbitrator's fees. You and AKS
     will bear your own litigation costs and expenses (including attorneys
     fees), unless the arbitrator awards attorneys fees to a prevailing party in
     accordance with the law applicable to the matter in dispute.

5.   You and AKS will agree upon an arbitrator selected from a panel of
     arbitrators chosen by and maintained at the headquarters office of the AAA
     in New York. Arbitrators on this panel will have the following three
     qualifications: (1) membership on the AAA's National Employment Dispute
     roster; (2) membership on AAA's labor-management roster; and (3) at least
     fifteen years experience as an arbitrator. After the filing of a written
     notice of intent to arbitrate, the AAA will send simultaneously to you and
     AKS an identical list of names of ten (10) persons chosen from the panel.
     You and AKS will have ten (10) days from the transmittal date in which to
     strike any names objected to, number the remaining names in order of
     preference, and return the list to the AAA. If no arbitrator is acceptable
     to both you and AKS or the person who has been approved on both lists and
     selected by the AAA cannot serve promptly, another list or lists will be
     sent out by the AAA in accordance with the above procedure until an
     arbitrator is agreed upon by you and AKS.

6.   Any pre-hearing disputes will be presented to the arbitrator for
     expeditious, final and binding resolution.

                                       24

<PAGE>

7.   You have had an opportunity to review the National Rules and will be given
     the opportunity to review these rules at any time.

8.   The remedy and relief which may be granted by the arbitrator is that which
     the arbitrator deems just and equitable considering what would have been
     available to the parties had the matter been heard in court.

9.   Discovery - Obtaining Information. You and AKS recognize that a primary
     benefit each derives from entering into the Agreement is that we avoid the
     delay and costs normally associated with litigation. Therefore, you and AKS
     agree that neither party will be entitled to conduct any discovery prior to
     the Hearing except that:

     (a)  AKS will furnish you with copies of all non-privileged documents in
          your personnel file;

     (b)  if you are pursuing a claim against AKS for discharge, you will
          furnish AKS with records of your earnings and benefits relating to
          your subsequent employment and all documents relating to your efforts
          to obtain subsequent employment;

     (c)  AKS and you will exchange no later than seven days prior to the
          Hearing copies of all documents which either party intends to
          introduce as evidence at the Hearing and a list of witnesses either
          party intends to present at the Hearing;

     (d)  you will be allowed (at your expense) to take the deposition of your
          immediate supervisor and the individual who made the decision which
          resulted in your claim (if that individual is not your immediate
          supervisor) for a period not to exceed two hours each, and AKS will be
          allowed (at its expense) to depose you for a period not to exceed two
          hours; and

     (e)  either you or AKS may ask the arbitrator to grant additional discovery
          to the extent permitted by the National Rules if it is demonstrated
          that such discovery is necessary for a fair arbitration and no less
          expensive alternative for exchanging the information exists.

          Nothing herein will prevent either you or AKS from taking the
          deposition of any witness where: (a) the sole purpose for taking the
          deposition is to use the deposition in lieu of the witness testifying
          at the hearing; and (b) the witness is, in good faith, unavailable to
          testify in person at the hearing due to poor health, residency and
          employment more than 50 miles from the hearing site, conflicting
          travel plans or other comparable reason.

10.  You and AKS will have the opportunity to submit to the arbitrator a
     post-hearing brief in support of your respective positions.

                                       25

<PAGE>

11.  All aspects of the procedure under the Agreement, including the hearing,
     the record of the proceedings, and the arbitrator's decision are
     confidential and will not be open to the public, except (a) to the extent
     you and AKS agree otherwise in writing, (b) as may be appropriate in any
     subsequent proceedings between you and AKS, or (c) as may otherwise be
     appropriate in response to a governmental agency or legal process.

                                       26

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