<PAGE>
                FIRST AMENDMENT TO SUBSIDIARY SECURITY AGREEMENT

                  This FIRST AMENDMENT TO SUBSIDIARY SECURITY AGREEMENT (this
"Amendment"), dated as of July 31, 2001, is entered into by and among the
undersigned Restricted Subsidiary of AmeriGas Propane, L.P., a Delaware limited
partnership ( "Assignor"), Bank of America, N.A. (formerly Bank of America
National Trust and Savings Association), as collateral agent (in such capacity,
the "Collateral Agent") and Mellon Bank, N.A., as cash collateral sub-agent (in
such capacity, the "Cash Collateral Sub-Agent"), and amends that certain
Subsidiary Security Agreement (as the same is in effect immediately prior to the
effectiveness of this Amendment, the "Existing Security Agreement" and as the
same may be amended, supplemented or modified and in effect from time to time,
the "Security Agreement"), dated as of April 19, 1995, by and among the
Assignor, the Collateral Agent and the Cash Collateral Sub-Agent. Capitalized
terms used and not otherwise defined in this Amendment shall have the same
meanings in this Amendment as set forth in the Existing Security Agreement.

                                    RECITALS

                  The Company, the Collateral Agent and the Cash Collateral
Sub-Agent have agreed to amend the Existing Security Agreement in certain
respects on the terms and subject to the conditions set forth below.

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants and agreements set forth below and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows:

                  SECTION 1. Amendments. On the terms of this Amendment and
subject to the satisfaction of all of the conditions precedent set forth below
in Section 2:

                  (a) The following definitions are hereby added to Appendix A
of the Existing Security Agreement in their respective appropriate alphabetical
order:

                           "Commodity Account" shall mean an account maintained
                  by a Commodity Intermediary in which a Commodity Contract is
                  carried out for a Commodity Customer.

                           "Commodity Contract" shall mean a commodity futures
                  contract, an opinion on a commodity futures contract, a
                  commodity option or any other contract that, in each case, is
                  (a) traded on or subject to the rules of a board of trade that
                  has been designated as a contract market for such a contract
                  pursuant to the federal commodities laws or (b) traded on a
                  foreign commodity board of trade, exchange or market, and is
                  carried on the books of a Commodity Intermediary for a
                  Commodity Customer.

                           "Commodity Customer" shall mean a Person for whom a
                  Commodity Intermediary carries a Commodity Contract on its
                  books.
<PAGE>
                           "Commodity Intermediary" shall mean (a) a Person who
                  is registered as a futures commission merchant under the
                  federal commodities laws or (b) a Person who in the ordinary
                  course of its business provides clearance or settlement
                  services for a board of trade that has been designated as a
                  contract market pursuant to federal commodities laws.

                           "Entitlement Holder" shall mean a Person identified
                  in the records of a Securities Intermediary as the Person
                  having a Security Entitlement against the Securities
                  Intermediary. If a Person acquires a Security Entitlement by
                  virtue of Section 8-501(b)(2) or (3) of the UCC, such Person
                  is the Entitlement Holder.

                           "Financial Asset" shall mean (a) a Security, (b) an
                  obligation of a Person or a share, participation or other
                  interest in a Person or in property or an enterprise of a
                  Person, which is, or is of a type, dealt with in or traded on
                  financial markets, or which is recognized in any area in which
                  it is issued or dealt in as a medium for investment or (c) any
                  property that is held by a Securities Intermediary for another
                  Person in a Securities Account if the Securities Intermediary
                  has expressly agreed with the other Person that the property
                  is to be treated as a Financial Asset under Article 8 of the
                  UCC. As the context requires, the term Financial Asset shall
                  mean either the interest itself or the means by which a
                  Person's claim to it is evidenced, including a certified or
                  uncertified Security, a certificate representing a Security or
                  a Security Entitlement.

                           "Investment Property" shall mean all Securities
                  (whether certificated or uncertificated), Security
                  Entitlements, Securities Accounts, Commodity Contracts and
                  Commodity Accounts.

                           "Parity Debt" shall mean Indebtedness of the Company
                  that is (a) incurred in accordance with (i) Sections 10.1(a),
                  10.1(b), 10.1(e), 10.1(f) or 10.1(k) of the Note Agreements
                  and (ii) Sections 8.1(a), 8.1(b), 8.1(e), 8.1(f) and 8.1(l) of
                  the Credit Agreement (other than Indebtedness evidenced by the
                  Notes or the Bank Notes, but including in any event the Public
                  Notes) and (b) secured by the respective Liens of the Security
                  Documents in accordance with (i) Sections 10.2(j), (k), (l) or
                  (m) of the Note Agreements and (ii) Sections 8.3(j), (k), (l)
                  or (m) of the Credit Agreement.

                           "Permitted Investment Account" shall mean a
                  "securities account" within the meaning of Section 8-501 of
                  the UCC maintained at a Permitted Bank or at a registered
                  broker-dealer of comparable credit quality and with respect to
                  which account the Collateral Agent (or the Cash Collateral
                  Sub-Agent acting at the direction of the Collateral Agent) has
                  a first priority perfected security interest (subject to any
                  lien of the Permitted Bank or registered broker-dealer solely
                  for usual and customary fees and costs relating to the
                  securities account and advances or overdrafts created in the
                  ordinary course of business in connection with the settlement
                  of trading activity in the securities account) and has
                  established "control" within the meaning of the UCC pursuant
                  to an account control agreement reasonably satisfactory to the
                  Collateral Agent.

                                       -2-
<PAGE>
                           "Securities" shall mean any obligations of an issuer
                  or any shares, participations or other interests in an issuer
                  or in property or an enterprise of an issuer which (a) are
                  represented by a certificate representing a security in bearer
                  or registered form, or the transfer of which may be registered
                  upon books maintained for that purpose by or on behalf of the
                  issuer, (b) are one of a class or series or by their terms are
                  divisible into a class or series of shares, participations,
                  interests or obligations and (c)(i) are, or are of a type,
                  dealt with or trade on securities exchanges or securities
                  markets or (ii) are a medium for investment and by their terms
                  expressly provide that they are a security governed by Article
                  8 of the UCC.

                           "Securities Account" shall mean an account to which a
                  Financial Asset is or may be credited in accordance with an
                  agreement under which the Person maintaining the account
                  undertakes to treat the Person for whom the account is
                  maintained as entitled to exercise rights that comprise the
                  Financial Asset.

                           "Securities Entitlements" shall mean the rights and
                  property interests of an Entitlement Holder with respect to a
                  Financial Asset.

                           "Securities Intermediary" shall mean (a) a clearing
                  corporation or (b) a Person, including a bank or broker, that
                  in the ordinary course of its business maintains Securities
                  Accounts for others and is acting in that capacity.

                  (b) Section 1.1(a) of the Existing Security Agreement is
hereby amended to read in its entirety as follows:

                           As security for the prompt and complete payment and
                  performance when due of all of the Obligations, each Assignor
                  does hereby sell, assign and transfer unto the Collateral
                  Agent for the benefit of the Secured Creditors, and does
                  hereby grant to the Collateral Agent for the benefit of the
                  Secured Creditors, a continuing security interest of first
                  priority (subject to Liens evidenced by Permitted Filings and
                  Liens permitted by the Note Agreements, the Credit Agreement
                  and the Parity Debt Agreements) in, all of the right, title
                  and interest of such Assignor in, to and under all of the
                  following, whether now existing or hereafter from time to time
                  acquired (collectively, the "Collateral"): (i) each and every
                  Receivable, (ii) all Contracts, other than Contracts the
                  collateral assignment of which is prohibited by law or
                  judicial determination or as to which such Assignor has not
                  been able to obtain consent for the collateral assignment
                  hereunder and such requirement for consent is not invalidated
                  by applicable law or course of conduct (but including without
                  limitation the License Agreements), together with all Contract
                  Rights arising thereunder, (iii) all Equipment, including
                  without limitation all of the Railcars and Vehicles (and the
                  certificates of title and other registrations relating
                  thereto), (iv) all Inventory, (v) all Investment Property,
                  (vi) all Marks, together with the registrations and right to
                  all renewals thereof, and the goodwill of the business of such
                  Assignor symbolized by the Marks, (vii) all Patents and
                  Copyrights, (viii) all computer programs of such Assignor and
                  all intellectual property rights therein and all other
                  proprietary information of such


                                      -3-
<PAGE>
                  Assignor, including, but not limited to, trade secrets, (ix)
                  the Cash Concentration Account established for such Assignor
                  and all monies, securities and instruments deposited or
                  required to be deposited in such Cash Concentration Account,
                  (x) all other Goods, General Intangibles, Chattel Paper,
                  Documents, Instruments and the Pledged Shares (and
                  Distributions and Dividends in respect thereof) and (xi) all
                  Proceeds and products of any and all Collateral referred to in
                  clauses (i) through (x) of this Section 1.1(a).

                  (c) The first sentence of Section 2.9 of the Existing Security
Agreement is hereby amended to read in its entirety as follows:

                  The Cash Collateral Sub-Agent has hereby established in its
                  own name and for the benefit of the Collateral Agent and the
                  Secured Creditors, at the Cash Collateral Sub-Agent's office
                  located at Three Mellon Bank Center, Pittsburgh, PA 15258-0001
                  an account (account no. 094-0764) with respect to each
                  Restricted Subsidiary (such account is referred to herein as
                  the "Cash Concentration Account"), for purposes of this
                  Agreement.

                  (d) Section 2.11 of the Existing Security Agreement is hereby
amended to read in its entirety as follows:

                           2.11 Investment of Funds Deposited in the Cash
                  Concentration Account. (a) Unless and until there shall have
                  occurred and be continuing (i) a Bankruptcy Event or (ii) any
                  other General Event of Default, but in the case of this clause
                  (ii) only to the extent the Collateral Agent has so notified
                  the Company, and to the extent the Collateral has not
                  previously been applied pursuant to Article VIII hereof, the
                  Cash Collateral Sub-Agent will (and after the occurrence and
                  during the continuance of (i) a Bankruptcy Event or (ii) any
                  other General Event of Default, but in the case of clause (ii)
                  only to the extent the Collateral Agent has so notified the
                  Company, the Cash Collateral Sub-Agent may only if directed by
                  the Collateral Agent (acting pursuant to a Direction Notice))
                  from time to time, at the request of the Company, invest funds
                  on deposit in the Cash Concentration Account in Permitted
                  Investments. Except as set forth in Subsection (b) below,
                  investments made pursuant to this Section 2.11, and all
                  proceeds thereof, shall be held in the Cash Concentration
                  Account as part of the Collateral. All such investments shall
                  be made for the benefit of the Collateral Agent and the
                  Secured Creditors. All risk of loss-in respect of investments
                  made pursuant to this Section 2.11 shall be on the Company.

                           (b) To the extent the Collateral has not previously
                  been applied pursuant to Article VIII hereof, the Company
                  shall have the right to transfer amounts from the Cash
                  Concentration Account to one or more Permitted Investment
                  Accounts from time to time solely for the purpose of making
                  temporary investments in Permitted Investments which shall be
                  held in the applicable Permitted Investment Account; provided
                  that upon the occurrence and continuance of a General Event of
                  Default, the Company shall no longer be permitted to transfer
                  amounts from the Cash


                                      -4-
<PAGE>
                  Concentration Account pursuant to this Section 2.11(b) and the
                  Cash Collateral Sub-Agent shall then have the right, acting
                  upon the instruction of the Collateral Agent acting pursuant
                  to a Direction Notice, to transfer all funds from the
                  Permitted Investment Accounts to the Cash Concentration
                  Account and liquidate any Permitted Investments.

                           The Company shall be permitted to withdraw amounts
                  from the Permitted Investment Accounts to the same extent that
                  it is otherwise permitted to withdraw amounts from the Cash
                  Concentration Account.

                  (e) Section 2.12(b) of the Existing Security Agreement is
hereby amended by adding the following clause (w) before clause (x) therein:

                           (w) such Collateral is transferred to a Permitted
                  Investment Account as provided by Section 2.11(b) hereof,

                  SECTION 2. Conditions to Effectiveness of Amendments . The
amendments set forth in Section 1 of this Amendment shall become effective only
upon the satisfaction of all of the following conditions precedent (the date of
satisfaction of all such conditions being referred to as the "Amendment
Effective Date"):

                  (a) First Amendment. On or before the Amendment Effective
Date, the Collateral Agent shall have received, on behalf of the Secured
Creditors, this Amendment, duly executed and delivered by Assignor, the
Collateral Agent and the Cash-Collateral Sub-Agent.

                  (b) Direction Notice. On or before the Amendment Effective
Date, the Collateral Agreement shall have received a Direction Notice, in form
and substance satisfactory to the Collateral Agent, from the Requisite
Percentage with respect to, among other things, the amendments to the Security
Documents and the modifications to the General Collateral contemplated by this
Amendment.

                  SECTION 3. The Assignor's Representations and Warranties. In
order to induce the Collateral Agent on behalf of the Secured Creditors to enter
into this Amendment and to amend the Existing Security Agreement in the manner
provided in this Amendment, Assignor represents and warrants to the Collateral
Agent, the Cash Collateral Sub-Agent and each Secured Creditor as of the
Amendment Effective Date as follows:

                  (a) Power and Authority. Assignor has all requisite corporate
or partnership power and authority to enter into this Amendment and to carry out
the transactions contemplated by, and perform its obligations under, the
Existing Security Agreement as amended by this Amendment (hereafter referred to
as the "Amended Security Agreement").

                  (b) Authorization of Agreements. The execution and delivery of
this Amendment by Assignor and the performance of the Amended Security Agreement
by Assignor have been duly authorized by all necessary action, and this
Amendment has been duly executed and delivered by Assignor.

                                      -5-
<PAGE>
                  (c) Enforceability. The Amended Security Agreement constitutes
the legal, valid and binding obligation of Assignor enforceable against Assignor
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, moratorium or similar laws affecting creditors' rights
generally.

                  (d) No Conflict. The execution, delivery and performance by
Assignor of this Amendment, and the performance by Assignor of the Amended
Security Agreement, do not and will not (i) violate (x) any provision of the
certificate of incorporation or other organizational documents of Assignor, (y)
any applicable law, ordinance, rule or regulation of any Governmental Authority
or any applicable order, judgment or decree of any court, arbitrator or
Governmental Authority, or (z) any provision of any agreement or instrument to
which Assignor is a party or by which any of its properties is bound, except (in
the case of clauses (y) and (z) above) for such violations which would not,
individually or in the aggregate, present a reasonable likelihood of having a
Material Adverse Effect, or (ii) result in the creation of (or impose any
express obligation on the part of Assignor to create) any Lien not permitted by
Section 8.3 of the Credit Agreement and under Section 10.2 of the Note
Agreements.

                  (e) Governmental Consents. Except for Routine Permits, no
consent, approval or authorization of, or declaration or filing with, any
Governmental Authority is required for the valid execution, delivery and
performance of this Amendment by Assignor.

                  (f) Investment Property. All Investment Property owned by
Assignor as of the Amendment Effective Date is listed on Schedule I hereto.

                  (g) Representations and Warranties in the Existing Security
Agreement. Assignor confirms that as of the Amendment Effective Date, the
representations and warranties contained in Article II of the Existing Security
Agreement are (before and after giving effect to this Amendment) true and
correct in all material respects (except to the extent such representations and
warranties expressly relate to an earlier time or date, in which case they shall
have been true and correct in all material respects as of such earlier time or
date) with the same effect as if made on and as of the Amendment Effective Date.

                  SECTION 4. Miscellaneous.

                  (a) Reference to and Effect on the Existing Security Agreement
and the Other Security Documents.

                  (i) Except as specifically amended by this Amendment and the
         documents executed and delivered in connection herewith, the Existing
         Security Agreement and the other Security Documents shall remain in
         full force and effect and are hereby ratified and confirmed. This
         Amendment shall be a "Security Document" under the Intercreditor
         Agreement.

                  (ii) The execution and delivery of this Amendment and
         performance of the Amended Security Agreement shall not, except as
         expressly provided herein, constitute a waiver of any provision of, or
         operate as a waiver of any right, power or remedy of the Collateral
         Agent, the Cash Collateral Sub-Agent or any Secured Creditor under, the
         Existing Security Agreement or any other Security Document.

                                      -6-
<PAGE>
                  (iii) Upon the conditions precedent set forth herein being
         satisfied, this Amendment shall be construed as one with the Existing
         Security Agreement, and the Existing Security Agreement shall, where
         the context requires, be read and construed throughout so as to
         incorporate this Amendment.

                  (b) Headings. Section and subsection headings in this
Amendment are included for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any
substantive effect.

                  (c) Counterparts. This Amendment may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

                  (d) Governing Law. This Amendment shall be governed by and
construed according to the laws of the State of New York.

                           [Signature Pages to Follow]



                                      -7-
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Amendment as of the date first above written.

                                    ASSIGNOR:

                                    AMERIGAS PROPANE PARTS &
                                    SERVICE, INC., a Delaware corporation


                                    By:
                                        ----------------------------------------
                                    Name:  Robert W. Krick
                                    Title:  Treasurer
<PAGE>
                                    COLLATERAL AGENT:

                                    BANK OF AMERICA, N.A., as Collateral Agent


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





                                    CASH COLLATERAL SUB-AGENT:

                                    MELLON BANK, N.A., as Cash Collateral
                                    Sub-Agent


                                    By:
                                        ----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------
<PAGE>
                                   SCHEDULE I

                               INVESTMENT PROPERTY

[This Schedule I is to be completed by the Assignors and shall describe all
Investment Property owned by the Assignors.]