Document:

EX-10.1

CREDIT AGREEMENT

Dated as of April 18, 2005

among

AMERIGAS PROPANE, L.P.,

as Borrower,

AMERIGAS PROPANE, INC.,

as a Guarantor,

PETROLANE INCORPORATED,

as a Guarantor,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Agent,

and

THE OTHER FINANCIAL INSTITUTIONS PARTY HERETO

1

2

Schedules

	 	 	 
	Schedule 2.1:

Schedule 6.2:

Schedule 6.3:

Schedule 6.7:

Schedule 6.8(a):

Schedule 6.9:

Schedule 6.15:

Schedule 6.19:

Schedule 6.20

Schedule 12.2:

	 	Term Loan Commitments and Percentages

Partnership Interests and Subsidiaries

Foreign Qualifications

Permitted Indebtedness

Permits and Consents

Litigation

Matters Relating to Petrolane

Environmental Liabilities

Copyrights, Patents, Trademarks and Licenses, Etc.

Offshore and Domestic Lending Office, Addresses for Notices
	 
	 	 
	Exhibits

	 	

	 

	 	

	 
	 	 
	Exhibit A:

Exhibit B:

Exhibit C:

Exhibit D:

Exhibit E:

Exhibit F:

Exhibit G:

Exhibit H:

Exhibit I:

	 	Notice of Borrowing

Notice of Conversion/ Continuation

[INTENTIONALLY DELETED]

Form of Compliance Certificate

[INTENTIONALLY DELETED]

Form of Assignment and Acceptance Agreement

Form of Promissory Note

[INTENTIONALLY DELETED]

Form of Subordination Provisions

3

CREDIT AGREEMENT

This CREDIT AGREEMENT (as the same may be amended, supplemented, assigned or otherwise
modified from time to time in accordance with the terms hereof, this “Agreement”), dated as of
April 18, 2005, among AMERIGAS PROPANE, L.P., a Delaware limited partnership (the “Borrower”),
AMERIGAS PROPANE, INC., a Pennsylvania corporation (the “General Partner”), PETROLANE INCORPORATED,
a Pennsylvania corporation (“Petrolane”; the General Partner and Petrolane are, on a joint and
several basis, the “Guarantors”; the Borrower, the General Partner and Petrolane are, on a joint
and several basis, the “Obligors”), the several financial institutions from time to time party to
this Agreement (collectively, the “Banks”; individually, a “Bank”) and WACHOVIA BANK, NATIONAL
ASSOCIATION, as administrative agent for the Banks (the “Agent”).

WHEREAS, the Obligors have requested a $35,000,000 term loan facility, the proceeds of which
shall be used by the Borrower to refinance, in part, the Borrower’s mandatory principal repayment
under the Series A-C First Mortgage Notes (as defined below); and

WHEREAS, the Banks are willing, on the terms and subject to the conditions set forth in this
Agreement, to enter into, and to extend credit under, this Agreement as more particularly
hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein, the parties agree as follows:

ARTICLE I

DEFINITIONS

1.1 Certain Defined Terms. The following terms have the following meanings:

“Acquired Debt” means with respect to any specified Person, (i) Indebtedness of any other
Person existing at the time such other Person merged with or into or became a Subsidiary of such
specified Person, including Indebtedness incurred in connection with, or in contemplation of, such
other Person merging with or into or becoming a Subsidiary of such specified Person and (ii)
Indebtedness encumbering any asset acquired by such specified Person.

“AEPH” means AmeriGas Eagle Holdings, Inc. (formerly CP Holdings, Inc.), a Delaware
corporation.

“AEPI” means AmeriGas Eagle Propane, Inc. (formerly Columbia Propane Corporation), a Delaware
corporation.

“AEPLP” means AmeriGas Eagle Propane, L.P. (formerly Columbia Propane, L.P.), a Delaware
limited partnership.

“AEPLP Acquisitions” has the meaning specified in Section 8.15.

“AEPLP Available Date” means the earliest of (i) 180 days after the expiration of the Debt
Indemnity provided under the National Propane Purchase Agreement, (ii) the purchase by AEPLP of the
partnership interest of the Special Limited Partner (as defined in the AEPLP Partnership Agreement)
in AEPLP pursuant to the Special Limited Partner’s put option under Section 4.5 of the AEPLP
Partnership Agreement and (iii) the purchase by AEPLP of the partnership interest of the Special
Limited Partner in AEPLP pursuant to AEPLP’s call option under Section 4.5 of the AEPLP Partnership
Agreement.

“AEPLP Partnership Agreement” means that certain Amended and Restated Agreement of Limited
Partnership of National Propane, L.P. (renamed AEPLP), dated as of July 19, 1999, by and among
AEPI, AEPH, and National Propane Corporation, as amended, supplemented, or otherwise modified from
time to time.

“AEPLP Security Date” has the meaning specified in Section 8.17.

“AEPLP Subsidiary Guaranty” has the meaning specified in Section 8.17.

“AEPLP Taxes” means all federal, state, local or foreign taxes, governmental fees or like
charges of any kind whatsoever, whether disputed or not.

“Affected Bank” has the meaning specified in Section 4.7.

“Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person. A Person shall be
deemed to control another Person if the controlling Person possesses, directly or indirectly, the
power to direct or cause the direction of the management and policies of the other Person, whether
through the ownership of voting securities, by contract, or otherwise.

“Agent” means Wachovia in its capacity as administrative agent for the Banks hereunder, and
any successor agent arising under Section 10.9.

“Agent-Related Persons” means the Agent, together with its Affiliates, and the officers,
directors, employees, agents and attorneys-in-fact of such Persons and Affiliates.

“Agent’s Payment Office” means the address for payments set forth on Schedule 12.2
hereto in relation to the Agent, or such other address as the Agent may from time to time specify
by written notice to the Borrower and the Banks.

“Agreement” has the meaning specified in the introductory clause hereto.

“AmeriGas Eagle Parts & Service” means AmeriGas Eagle Parts & Service, Inc., a Delaware
corporation.

“Annual Limit” has the meaning specified in Section 8.4(c).

“Applicable Margin” means

(i) with respect to Base Rate Loans, 0%; and

(ii) with respect to Eurodollar Rate Loans,

the applicable margin set forth below at such time as a Pricing Tier (the “Pricing Tier”) set
forth below is applicable:

	 	 	 	 	 	 	 	 	 
	Pricing Tier	 	Funded Debt Ratio	 	Margin
	I
	 	Less than or equal to 2.25x            
	 	 	1.0000	%
	II
	 	Greater than 2.25x but less            
	 	 	1.2500	%
	 
	 	than or equal to 2.75x
	 	 	 	 
	III
	 	Greater than 2.75x but less            
	 	 	1.3750	%
	 
	 	than or equal to 3.25x
	 	 	 	 
	IV
	 	Greater than 3.25x but less            
	 	 	1.6250	%
	 
	 	than or equal to 3.75x
	 	 	 	 
	V
	 	Greater than 3.75x but less            
	 	 	1.7500	%
	 
	 	than or equal to 4.25x
	 	 	 	 
	VI
	 	Greater than 4.25x but less            
	 	 	2.0000	%
	 
	 	than or equal to 4.75x
	 	 	 	 
	VII
	 	Greater than 4.75                      
	 	 	2.2500	%

For the purpose of determining the applicable Pricing Tier above and subject to the last sentence
of this paragraph, EBITDA shall be determined as at the end of each fiscal quarter for the four
fiscal quarters then ending and Funded Debt shall be determined as at the end of each fiscal
quarter for which such calculation is being determined. Pricing changes shall be effective on the
later of (i) 45 days after the end of each of the first three fiscal quarters of each fiscal year
and 90 days after each fiscal year end and (ii) the Agent’s receipt of financial statements
hereunder for such fiscal quarter or fiscal year; provided, however, that if the
financial statements are not delivered when due in accordance with Section 7.1, then
Pricing Tier VII shall apply as of the first Business Day after the date on which such financial
statements were required to have been delivered until the date upon which such financial statements
are delivered to the Agent. For the period from the Closing Date through the effective date of the
next applicable pricing change pursuant hereto, the applicable Pricing Tier shall be Pricing Tier
I. Nothwithstanding anything to the contrary in this Agreement, upon the incurrence of
Indebtedness for borrowed money by the Borrower (other than Indebtedness under the Existing Credit
Agreement), the Applicable Margin shall be increased to the extent necessary so that the interest
charged hereunder is equal to the interest charged under any such Indebtedness. Any increase of
the Applicable Margin is hereby deemed to occur automatically and concurrently by reason of the
execution of this Agreement without any further action or the execution of any additional document
by any of the parties to this Agreement.

“Asset Acquisition” means (a) an Investment by the Borrower or any Restricted Subsidiary in
any other Person pursuant to which such Person shall become a Restricted Subsidiary or shall be
merged with or into the Borrower or any Restricted Subsidiary, (b) the acquisition by the Borrower
or any Restricted Subsidiary of the assets of any Person (other than a Restricted Subsidiary) which
constitute all or substantially all of the assets of such Person or (c) the purchase or other
acquisition by the Borrower or any Restricted Subsidiary (in one or a series of transactions) of
any division or line of business of any Person (other than a Restricted Subsidiary).

“Asset Sale” has the meaning specified in Section 8.8(c).

“Assets” means the assets owned by, licensed to, leased or otherwise used in the business by
the Borrower and its Subsidiaries.

“Assignee” has the meaning specified in Section 12.9(a).

“Attorney Costs” means and includes all reasonable fees and disbursements of any law firm or
other external counsel, the reasonable allocated cost of internal legal services and all reasonable
disbursements of internal counsel.

“Available Cash” as to any calendar quarter means

(a) the sum of (i) all cash of the Borrower and the Restricted Subsidiaries on hand at the end
of such quarter and (ii) all additional cash of the Borrower and the Restricted Subsidiaries on
hand on the date of determination of Available Cash with respect to such quarter resulting from
borrowings subsequent to the end of such quarter, less

(b) the amount of cash reserves that is necessary or appropriate in the reasonable discretion
of the General Partner to (i) provide for the proper conduct of the business of the Borrower and
the Restricted Subsidiaries (including reserves for future capital expenditures) subsequent to such
quarter, (ii) provide funds for distributions under Sections 5.3(a), (b) and (c) or 5.4(a) of the
partnership agreement of the Public Partnership (such Sections as in effect on the Closing Date,
together with all related definitions, being hereby incorporated herein in the form included in
such partnership agreement on the Closing Date and without regard to any subsequent amendments or
waivers of the provisions of, or any termination of, such partnership agreement) in respect of any
one or more of the next four quarters, or (iii) comply with applicable law or any debt instrument
or other agreement or obligation to which the Borrower or any Restricted Subsidiary is a party or
its assets are subject; provided, however, that Available Cash attributable to any
Restricted Subsidiary shall be excluded to the extent dividends or distributions of such Available
Cash by such Restricted Subsidiary are not at the date of determination permitted by the terms of
its charter or any agreement, instrument, judgment, decree, order, statute, rule or other
regulation.

In addition, without limiting the foregoing, Available Cash shall reflect a reserve equal to
50% of the interest to be paid on the First Mortgage Notes and the Loans in the next fiscal quarter
and, beginning with a date three fiscal quarters before a scheduled principal payment date on the
First Mortgage Notes or the Loans, 25% of the aggregate principal amount thereof due on any such
payment date in the third succeeding fiscal quarter, 50% of the aggregate principal amount due on
any such quarterly payment date in the second succeeding fiscal quarter and 75% of the aggregate
principal amount due on any quarterly payment date in the next succeeding fiscal quarter on such
notes and facilities. The foregoing reserves for principal amounts to be paid shall be reduced by
the aggregate amount of advances available to the Borrower from responsible financial institutions
under binding, irrevocable credit facility commitments (and which are subject to no conditions
which the Borrower is unable to meet) and letters of credit to be used to refinance such principal
(so long as no repayment obligations under such credit facilities and no reimbursement obligation
with respect to any such letter of credit would come due within three quarters).

“Average Consolidated Pro Forma Debt Service” means as of any date of determination, the
average amount payable by the Borrower and the Restricted Subsidiaries on a consolidated basis
during all periods of four consecutive calendar quarters, commencing with the calendar quarter in
which such date of determination occurs and ending June 30, 2010, in respect of scheduled interest
(but not principal) payments with respect to all Indebtedness of the Borrower and the Restricted
Subsidiaries outstanding on such date of determination, after giving effect to any Indebtedness
proposed on such date to be incurred and to the substantially concurrent repayment of any other
Indebtedness (a) including actual payments of Capitalized Lease Liabilities, (b) assuming, in the
case of Indebtedness (other than Indebtedness referred to in clause (c) below) bearing
interest at fluctuating interest rates which cannot be determined in advance, that the rate
actually in effect on such date will remain in effect throughout such period, and (c) including
only actual interest payments associated with the Indebtedness incurred pursuant to Section
8.1(e) during the most recent four consecutive calendar quarters.

“Bank” has the meaning specified in the introductory clause hereto.

“Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978, as amended (11 U.S.C. §
101, et seq.).

“Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) Prime Rate.

“Base Rate Loan” means a Loan that bears interest based on the Base Rate.

“Borrower” has the meaning specified in the introductory clause hereto.

“Borrower Financials” has the meaning specified in Section 7.1.

“Borrower’s Account” means the account maintained by the Borrower with Mellon Bank, N.A. and
designated as account number 094-0764 or such other account designated by the Borrower in writing.

“Borrowing” means a borrowing hereunder consisting of Loans of the same Type made to the
Borrower on the same day by the Banks and, in the case of Eurodollar Rate Loans, having the same
Interest Period, in either case under Article II.

“Business” means the business of wholesale and retail sales, distribution and storage of
propane gas and related petroleum derivative products and the retail sale of propane related
supplies and equipment, including home appliances.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the laws of, or are in fact closed in, the state where the
Agent’s Payment Office is located and, if such day relates to any Eurodollar Rate Loan, means any
such day on which dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

“Capital Adequacy Regulation” means any guideline, request or directive of any central bank or
other Governmental Authority, or any other law, rule or regulation, whether or not having the force
of law, in each case, regarding capital adequacy of any bank or of any corporation controlling a
bank.

“Capital Stock” means with respect to any Person, any and all shares, interests,
participations, rights in or other equivalents (however designated) of such Person’s capital stock,
including, with respect to partnerships and limited liability companies, partnership interests
(whether general or limited) or membership interests and any other interest or participation that
confers upon a Person the right to receive a share of the profits and losses of, or distributions
of assets of, such partnership or limited liability company, and any rights (other than debt
securities convertible into capital stock), warrants or options exchangeable for or convertible
into such capital stock.

“Capitalized Lease Liabilities” means all monetary obligations of the Borrower or any of its
Restricted Subsidiaries under any leasing or similar arrangement which, in accordance with GAAP,
would be classified as capitalized leases, and, for purposes of this Agreement and each other Loan
Document, the amount of such obligations shall be the principal components thereof.

“Capped Investments” has the meaning specified in Section 8.17(a).

“Carryover Threshold” has the meaning specified in Section 8.15.

“Cash Equivalents” has the meaning specified in Section 8.4(a).

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended.

“Change of Control” means (i) UGI shall fail to own directly or indirectly 100% of the general
partnership interests in the Borrower, or, if the Borrower shall have been converted to a corporate
form, at least 51% of the voting shares of the Borrower; or (ii) UGI shall fail to own directly or
indirectly at least a 30% ownership interest in the Borrower.

“Closing Date” means the date on which all conditions precedent set forth in Section
5.1 are satisfied or waived by the Banks.

“Code” means the Internal Revenue Code of 1986, as amended, and regulations promulgated
thereunder, in each case as in effect from time to time.

“Collateral Agency Agreement” means the Intercreditor and Agency Agreement dated as of April
19, 1995 among the Obligors, the Restricted Subsidiaries, the Agent, the holders of the Series A-C
First Mortgage Notes and the Collateral Agent, as the same may be amended, supplemented, assigned
or otherwise modified from time to time.

“Collateral Agent” means Wachovia and its successors and/or assigns, in its capacity as
Collateral Agent under the Security Documents.

“Columbia Purchase Agreement” means that certain Purchase Agreement dated as of January 30,
2001, and amended and restated on August 7, 2001, by and among Columbia Energy Group, a Delaware
corporation, AEPI, AEPLP, the Borrower, the Public Partnership and the General Partner, as amended,
supplemented or otherwise modified from time to time.

“Compliance Certificate” means a certificate substantially in the form of Exhibit
D.

“Consolidated Cash Flow” means with respect to the Borrower and the Restricted Subsidiaries
for any period, (1) the sum of, without duplication, the amounts for such period, taken as a single
accounting period, of (a) Consolidated Net Income, (b) Consolidated Non-Cash Charges, (c)
Consolidated Interest Expense and (d) Consolidated Income Tax Expense less (2) any non-cash items
increasing Consolidated Net Income for such period that had previously been added to Consolidated
Net Income when incurred as a Consolidated Non-Cash Charge. Consolidated Cash Flow shall be
calculated after giving effect, on a pro forma basis for the four full fiscal quarters immediately
preceding the date of the transaction giving rise to the need to calculate Consolidated Cash Flow,
to, without duplication, any Asset Sales or Asset Acquisitions (including without limitation any
Asset Acquisition giving rise to the need to make such calculation as a result of the Borrower or
one of its Restricted Subsidiaries (including any Person who becomes a Restricted Subsidiary as a
result of the Asset Acquisition) incurring, assuming or otherwise being liable for Acquired Debt)
occurring during the period commencing on the first day of such period to and including the date of
the transaction (the “Reference Period”), as if such Asset Sale or Asset Acquisition occurred on
the first day of the Reference Period; provided, however, that Consolidated Cash
Flow generated by an acquired business or asset shall be determined by the actual gross profit
(revenues minus cost of goods sold) of such acquired business or asset during the immediately
preceding four full fiscal quarters in the Reference Period minus the pro forma expenses that would
have been incurred by the Borrower and the Restricted Subsidiaries in the operation of such
acquired business or asset during such period computed on the basis of personnel expenses for
employees retained or to be retained by the Borrower and the Restricted Subsidiaries in the
operation of such acquired business or asset and non-personnel costs and expenses incurred by the
Borrower and the Restricted Subsidiaries in the operation of the Borrower’s business at similarly
situated Borrower facilities or Restricted Subsidiary facilities.

“Consolidated Income Tax Expense” means with respect to the Borrower and the Restricted
Subsidiaries for any period, the provision for federal, state, local and foreign income taxes of
the Borrower and the Restricted Subsidiaries for such period as determined on a consolidated basis
in accordance with GAAP.

“Consolidated Interest Expense” means, with respect to the Borrower and the Restricted
Subsidiaries for any period, without duplication, the sum of (i) the interest expenses of the
Borrower and the Restricted Subsidiaries for such period as determined on a consolidated basis in
accordance with GAAP, including without limitation (a) any amortization of debt discount, (b) the
net cost under Interest Rate Agreements, (c) the interest portion of any deferred payment
obligation, (d) all commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing and (e) all accrued interest plus (ii) the
interest component of capital leases paid, accrued or scheduled to be paid or accrued by the
Borrower and the Restricted Subsidiaries during such period as determined on a consolidated basis
in accordance with GAAP.

“Consolidated Net Income” means the net income of the Borrower and the Restricted
Subsidiaries, as determined on a consolidated basis in accordance with GAAP and as adjusted to
exclude (i) net after-tax extraordinary gains or losses, (ii) net after-tax gains or losses
attributable to Asset Sales, (iii) the net income or loss of any Person which is not a Restricted
Subsidiary and which is accounted for by the equity method of accounting, provided, that
Consolidated Net Income shall include the amount of dividends or distributions actually paid to the
Borrower or any Restricted Subsidiary, (iv) the net income of any Restricted Subsidiary to the
extent that dividends or distributions of such net income are not at the date of determination
permitted by the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or other regulation and (v) the cumulative effect of any changes in accounting
principles.

“Consolidated Net Worth” means, of any Person, at any date of determination, the total
partners’ equity (in the case of a partnership), total stockholders’ equity (in the case of a
corporation) or total membership interests (in the case of a limited liability company) of such
Person at such date, as would be shown on a balance sheet (consolidated, if applicable) of such
Person and, if applicable, its Subsidiaries (Restricted Subsidiaries in the case of the Borrower)
prepared in accordance with GAAP (less, in the case of the Borrower, the Net Amount of Unrestricted
Investment as of such date).

“Consolidated Non-Cash Charges” means, with respect to the Borrower and the Restricted
Subsidiaries for any period, the aggregate depreciation, amortization and any other non-cash
charges resulting in write downs in non-current assets, in each case reducing Consolidated Net
Income of the Borrower and the Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP.

“Consolidated Pro Forma Debt Service” means as of any date of determination, the total amount
payable by the Borrower and the Restricted Subsidiaries on a consolidated basis during the four
consecutive calendar quarters next succeeding the date of determination, in respect of scheduled
interest (but not principal) payments with respect to Indebtedness of the Borrower and the
Restricted Subsidiaries outstanding on such date of determination, after giving effect to any
Indebtedness proposed on such date to be incurred and to the substantially concurrent repayment of
any other Indebtedness (a) including actual payments of Capitalized Lease Liabilities, (b)
assuming, in the case of Indebtedness (other than Indebtedness referred to in clause (c)
below) bearing interest at fluctuating interest rates which cannot be determined in advance, that
the rate actually in effect on such date will remain in effect throughout such period, and (c)
including only actual interest payments associated with the Indebtedness incurred pursuant to
Section 8.1(e) during the most recent four consecutive calendar quarters.

“Contingent Obligation” means, as to any Person, any direct or indirect liability of that
Person, whether or not contingent, with or without recourse (otherwise than for collection or
deposit in the ordinary course of business), (a) with respect to any Indebtedness, lease, dividend,
letter of credit or other obligation (the “primary obligations) of another Person (the “primary
obligor”), including any obligation of that Person (i) to purchase, repurchase or otherwise acquire
such primary obligations or any security therefor, (ii) to advance or provide funds for the payment
or discharge of any such primary obligation, or to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency or any balance sheet item,
level of income or financial condition of the primary obligor, (iii) to purchase property,
securities or services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such primary obligation, or
(iv) otherwise to assure or hold harmless the holder of any such primary obligation against loss in
respect thereof (each, a “Guaranty Obligation”); (b) with respect to any Surety Instrument (other
than any Letter of Credit) issued for the account of that Person or as to which that Person is
otherwise liable for reimbursement of drawings or payments; (c) to purchase any materials, supplies
or other property from, or to obtain the services of, another Person if the relevant contract or
other related document or obligation requires that payment for such materials, supplies or other
property, or for such services, shall be made regardless of whether delivery of such materials,
supplies or other property is ever made or tendered, or such services are ever performed or
tendered, or (d) in respect of any Swap Contract. The amount of any Contingent Obligation shall,
in the case of Guaranty Obligations, be deemed equal to the stated or determinable amount of the
primary obligation in respect of which such Guaranty Obligation is made or, if not stated or if
indeterminable, the maximum reasonably anticipated liability in respect thereof, and in the case of
other Contingent Obligations, shall be equal to the maximum reasonably anticipated liability in
respect thereof.

“Control Affiliate” means UGI, the Public Partnership, the General Partner and any Person
controlling or controlled by, or under common control with, UGI, the Public Partnership or the
General Partner (other than the Borrower or any of its Subsidiaries).

“Conversion/Continuation Date” means any date on which, under Section 2.4, any
Borrower (a) converts Loans of one Type to the other Type, or (b) continues as Eurodollar Rate
Loans, but with a new Interest Period, Eurodollar Rate Loans having Interest Periods expiring on
such date.

“Covered Persons” shall have the meaning specified in the definition of Restricted Payment.

“Credit Parties” means the Obligors and any Restricted Subsidiary party to any Security
Document.

“Debt Indemnity” means the indemnity provided by Triarc Companies, Inc. under Section 5.9 of
the National Propane Purchase Agreement.

“Default” means any event or circumstance which, with the giving of notice, the lapse of time,
or both, would (if not cured or otherwise remedied during such time) constitute an Event of
Default.

“Designation Amounts” has the meaning specified in Section 7.13(a).

“Designee” has the meaning specified in Section 7.13(d).

“Disinterested Directors” means, with respect to any transaction or series of transactions
with Affiliates, a member of the Board of Directors of the General Partner who has no financial
interest, and whose employer has no financial interest, in such transaction or series of
transactions.

“Dollars”, “dollars” and “$” each mean lawful money of the United States.

“EBIT” means, for any period, the Borrower’s and its Restricted Subsidiaries’ Consolidated Net
Income (not including extraordinary gains or losses, other than losses arising from reserves
established in connection with the Tax Indemnity Provisions (as defined in the National Propane
Purchase Agreement)) plus Consolidated Interest Expense and Consolidated Income Tax Expense in each
case for such period, as determined in accordance with GAAP.

“EBITDA” means, for any period, EBIT plus the Borrower’s and its Restricted Subsidiaries’
depreciation and amortization of property, plant and equipment and intangible assets, in each case
as taken into account in calculating Consolidated Net Income, in each case for such period, as
determined in accordance with GAAP.

For the purposes of calculating the Applicable Margin, the rate of the facility fees payable
pursuant to Section 2.10(b) and the Leverage Ratio, EBITDA for any period (the “Applicable
Period”) shall be adjusted by the addition of the EBITDA of any Asset Acquisitions made during the
Applicable Period, as if such Asset Acquisitions occurred on the first day of the Applicable
Period, plus the addition of the “Savings Factor”; provided, however, that in the
case of calculating the Applicable Margin or the rate of the facility fees payable pursuant to
Section 2.10(b), the Savings Factor shall be added only for the purpose of causing the
Pricing Tier to remain the same (or to limit its increase) and not to decrease it (i.e. the Savings
Factor may be used to maintain pricing or limit any increase in pricing, not to decrease pricing).

The “Savings Factor” shall equal, with respect to any Asset Acquisition, an amount equal to
50% of the difference between (a) Actual Acquisition Expense minus (b) Pro Forma Acquisition
Expense. “Actual Acquisition Expense” means an amount equal to the personnel expenses and
non-personnel costs and expenses (which would be deducted from gross profits in calculating costs
and EBITDA) related to the operation of any Asset Acquisition from the beginning of the Applicable
Period to the date of the purchase of the Asset Acquisition. “Pro Forma Acquisition Expense” means
an amount equal to the personnel and non-personnel costs and expenses (which would be deducted from
gross profits in calculating costs and EBITDA) that would have been incurred with respect to the
operation of any Asset Acquisition for the period from the beginning of the Applicable Period to
the date of purchase of the Asset Acquisition, on the assumption that the ongoing personnel and non
personnel cost and expense savings projected as of the date of the Asset Acquisition had been
realized on the first day of the Applicable Period. In no event shall the aggregate Savings Factor
for any Applicable Period exceed 10% of EBITDA, before taking into effect the EBITDA relating to
such Asset Acquisition, for the Borrower and its Restricted Subsidiaries for such Applicable
Period.

“Eligible Assignee” means (i) a commercial bank organized under the laws of the United States,
or any state thereof, and having a combined capital and surplus of at least $100,000,000; and (ii)
a commercial bank organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development (the “OECD”), or a political subdivision of
any such country, and having a combined capital and surplus of at least $100,000,000,
provided, that such bank is acting through a branch or agency located in the United States.

“Environmental Laws” means all federal, state or local laws, statutes, common law duties,
rules, regulations, ordinances and codes, together with all administrative orders, directed duties,
requests, licenses, authorizations and permits of, and agreements with, any Governmental
Authorities, in each case relating to environmental matters.

“ERISA” means the Employee Retirement Income Security Act of 1974 and the regulations
thereunder. References to sections of ERISA also refer to any successor sections.

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common
control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the failure to
make a required contribution to a Pension Plan if such failure is sufficient to give rise to a Lien
under Section 302(f) of ERISA; (c) a withdrawal by the Borrower or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations which is treated
as such a withdrawal under Section 4062(e) of ERISA; (d) a complete or partial withdrawal by the
Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (e) the filing of a notice of intent to terminate, the treatment of a Plan
amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings
by the PBGC to terminate a Pension Plan or Multiemployer Plan; (f) an event or condition which
might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (g)
the imposition of any liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.

“Eurodollar Base Rate” has the meaning set forth in the definition of Eurodollar Rate.

“Eurodollar Rate” means for any Interest Period with respect to any Eurodollar Rate Loan, a
rate per annum determined by the Agent pursuant to the following formula:

	 	 	 
	Eurodollar Rate =	 	Eurodollar Base Rate
	
 
	 	1.00 – Eurodollar Reserve Percentage

Where,

“Eurodollar Base Rate” means, for such Interest Period:

(a) the rate per annum (rounded upward, if necessary, to the nearest 1/16 of
1%) equal to the rate determined by the Agent to be the offered rate that
appears on the page of the Telerate screen (or any successor thereto) that
displays an average British Bankers Association Interest Settlement Rate for
deposits in Dollars (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two Business Days prior to the first
day of such Interest Period, or

(b) if the rate referenced in the preceding clause (a) does not appear on
such page or service or such page or service shall not be available, the
rate per annum (rounded upward, if necessary, to the nearest 1/16 of 1%)
equal to the rate determined by the Agent to be the offered rate on such
other page or other service that displays an average British Bankers
Association Interest Settlement Rate for deposits in Dollars (for delivery
on the first day of such Interest Period) with a term equivalent to such
Interest Period, determined as of approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, or

(c) if the rates referenced in the preceding clauses (a) and (b) are not
available, the rate per annum (rounded upward, if necessary, to the nearest
1/16 of 1%) determined by the Agent as the rate of interest at which
deposits in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the Eurodollar Rate Loan being
made, continued or converted by Wachovia and with a term equivalent to such
Interest Period would be offered by Wachovia’s London branch to major banks
in the London interbank eurodollar market at their request at approximately
4:00 p.m. (London time) two Business Days prior to the first day of such
Interest Period.

“Eurodollar Reserve Percentage” means, for any day during any Interest
Period, the reserve percentage (expressed as a decimal, carried out to five
decimal places) in effect on such day, whether or not applicable to any
Bank, under regulations issued from time to time by the FRB for determining
the maximum reserve requirement (including any emergency, supplemental or
other marginal reserve requirement) with respect to Eurocurrency funding
(currently referred to as “Eurocurrency liabilities”). The Eurodollar Rate
for each outstanding Eurodollar Rate Loan shall be adjusted automatically as
of the effective date of any change in the Eurodollar Reserve Percentage.

“Eurodollar Rate Loan” means a Loan that bears interest at a rate based on the Eurodollar
Rate.

“Event of Default” has the meaning specified in Section 9.1.

“Excess Sale Proceeds” has the meaning specified in Section 8.8(c)(ii)(B).

“Exchange Act” means the Securities Exchange Act of 1934, and regulations promulgated
thereunder.

“Existing Credit Agreement” means that certain Credit Agreement dated as of August 28, 2003,
among the Obligors, the financial institutions party thereto and Wachovia, as administrative agent,
as amended from time to time in accordance with its terms.

“FDIC” means the Federal Deposit Insurance Corporation, and any Governmental Authority
succeeding to any of its principal functions.

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of
the rates on overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank on the
Business Day next succeeding such day; provided that (a) if such day is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Wachovia
on such day on such transactions as determined by the Agent.

“Fee Letter” has the meaning specified in Section 2.10(a).

“First Mortgage Note Agreements” means, collectively, (a) the separate Note Agreements, each
dated as of April 12, 1995, among the Obligors and the holders of the Series A-C First Mortgage
Notes, as the same may be amended, supplemented or otherwise modified from time to time, (b) the
Note Agreement, dated as of March 15, 1999, among the Borrower, the General Partner and the holders
of the Series D First Mortgage Notes, as the same may be amended, supplemented or otherwise
modified from time to time and (c) the Note Agreement, dated as of March 15, 2000, among the
Borrower, the General Partner and the holders of the Series E First Mortgage Note, as the same may
be amended, supplemented or otherwise modified from time to time.

“First Mortgage Notes” means the Series A-C First Mortgage Notes, the Series D First Mortgage
Notes and the Series E First Mortgage Notes.

“Foreign Bank” has the meaning specified in Section 10.13(a).

“FRB” means the Board of Governors of the Federal Reserve System, and any Governmental
Authority succeeding to any of its principal functions.

“Funded Debt” means, as of any date of determination, (i) indebtedness of the Borrower and/or
its Restricted Subsidiaries for borrowed money or for the deferred purchase price of property or
services, other than indebtedness for trade payables and non-recourse indebtedness which is not
required by GAAP to be classified as a liability on the balance sheet of the debtor, (ii)
Capitalized Lease Liabilities, and (iii) Contingent Obligations. For purposes of this definition,
undrawn letters of credit shall not constitute Funded Debt.

“Funded Debt Ratio” means the ratio of (a) Funded Debt to (b) EBITDA.

“GAAP” has the meaning specified in Section 1.3(a).

“Guarantors” has the meaning specified in the introductory clause hereto.

“Guarantor Financials” has the meaning specified in Section 7.14(b).

“General Collateral” means, collectively, the Mortgaged Property, and the properties referred
to as the “Collateral” in the General Security Agreement and each Subsidiary Security Agreement and
as the “Security” in the Collateral Agency Agreement.

“General Partner” has the meaning specified in the introductory clause hereto.

“General Security Agreement” means the General Security Agreement, dated as of April 19, 1995,
among the Borrower, the Collateral Agent, and Mellon Bank, N.A., as Cash Collateral Sub-Agent, as
the same may be amended, supplemented, assigned or otherwise modified from time to time.

“Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
entity exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, and any corporation or other entity owned or controlled, through stock or
capital ownership or otherwise, by any of the foregoing.

“Guaranty Obligation” has the meaning specified in the definition of “Contingent Obligation”.

“Hazardous Material” means:

(a) any “hazardous substance”, as defined by CERCLA;

(b) any “hazardous waste”, as defined by the Resource Conservation and Recovery Act, as
amended;

(c) any petroleum product other than propane; or

(d) any pollutant or contaminant or hazardous, dangerous or toxic chemical, material or
substance within the meaning of any other applicable federal, state or local law, regulation,
ordinance or requirement (including consent decrees and administrative orders) relating to or
imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste,
substance or material, all as amended or hereafter amended.

“Incorporated Covenant” has the meaning specified in Section 7.14(d).

“Indebtedness” of any Person means, without duplication, (a) all indebtedness for borrowed
money; (b) all obligations issued, undertaken or assumed as the deferred purchase price of property
or services (other than trade payables and accrued expenses arising in the ordinary course of
business on ordinary terms); (c) all non-contingent reimbursement or payment obligations with
respect to Surety Instruments; (d) all obligations evidenced by notes, bonds, debentures or similar
instruments, including obligations so evidenced incurred in connection with the acquisition of
property, assets or businesses; (e) all indebtedness created or arising under any conditional sale
or other title retention agreement, or incurred as financing, in either case with respect to
property acquired by the Person (even though the rights and remedies of the seller or bank under
such agreement in the event of default are limited to repossession or sale of such property); (f)
all Capitalized Lease Liabilities; (g) all indebtedness referred to in clauses (a)
through (f) above secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien upon or in property (including accounts
and contracts rights) owned by such Person, even though such Person has not assumed or become
liable for the payment of such Indebtedness; (h) all Redeemable Capital Stock of such Person valued
at the greater of its voluntary or involuntary maximum fixed repurchase price plus accrued
dividends; (i) any Preferred Stock of any Subsidiary of such Person valued at the sum of the
liquidation preference thereof or any mandatory redemption payment obligations in respect thereof
plus, in either case, accrued dividends thereon and (j) all Guaranty Obligations in respect of
indebtedness or obligations of others of the kinds referred to in clauses (a) through
(i) above.

“Indemnified Liabilities” has the meaning specified in Section 12.5.

“Indemnified Parties” has the meaning specified in Section 12.5.

“Insolvency Proceeding” means (a) any case, action or proceeding before any court or other
Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the
benefit of creditors, composition, marshaling of assets for creditors, or other, similar
arrangement in respect of a Person’s creditors generally or any substantial portion of a Person’s
creditors; in each case undertaken under U.S. Federal, state or foreign law, including in each case
the Bankruptcy Code.

“Intercompany Loan Agreement” means that certain Loan Agreement, dated July 19, 1999, between
National Propane, L.P. (renamed AEPLP) and Columbia Propane Corporation (renamed AEPI), as amended,
supplemented or otherwise modified from time to time.

“Intercompany Note” means that certain Promissory Note, dated July 19, 1999, by AEPLP in favor
of the Borrower by endorsement from AEPI in the original principal amount of $137,997,000, as
amended, supplemented or otherwise modified from time to time.

“Interest Payment Date” means, as to any Eurodollar Rate Loan, the last day of each Interest
Period applicable to such Loan and, as to any Base Rate Loan, the last Business Day of each
calendar quarter; provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the date that falls three months after the beginning of such
Interest Period is also an Interest Payment Date.

“Interest Period” means, as to any Eurodollar Rate Loan, the period commencing on the Closing
Date or on the Conversion/Continuation Date on which the Loan is converted into or continued as a
Eurodollar Rate Loan, and ending on the date two weeks or one, two, three or six months thereafter
as selected by the Borrower in its Notice of Borrowing or Notice of Conversion/Continuation;

provided, that:

(i) if any Interest Period would otherwise end on a day that is not a Business Day, that
Interest Period shall be extended to the following Business Day unless the result of such extension
would be to carry such Interest Period into another calendar month, in which event such Interest
Period shall end on the preceding Business Day;

(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month at the end of such
Interest Period) shall end on the last Business Day of the calendar month at the end of such
Interest Period; and

(iii) no Interest Period for any Loan shall extend beyond the Maturity Date.

“Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement or other similar agreement or arrangement designed to protect the
Borrower against fluctuations in interest rates on Parity Debt.

“Investment” means, as applied to any Person, any direct or indirect purchase or other
acquisition by such Person of stock or other securities of any other Person, or any direct or
indirect loan, advance or capital contribution by such Person to any other Person, and any other
item which would be classified as an “investment” on a balance sheet of such Person prepared in
accordance with GAAP, including without limitation any direct or indirect contribution of such
Person of property or assets to a joint venture, partnership or other business entity in which such
Person retains an interest (it being understood that a direct or indirect purchase or other
acquisition by such Person of assets of any other Person (other than stock or other securities)
shall not constitute an “Investment” for purposes of this Agreement). For purposes of Section
8.4(c), the amount involved in Investments made during any period shall be the aggregate cost
to the Borrower and its Restricted Subsidiaries of all such Investments made during such period,
determined in accordance with GAAP, but without regard to unrealized increases or decreases in
value, or write-ups, write-downs or write-offs, of such Investments and without regard to the
existence of any undistributed earnings or accrued interest with respect thereto accrued after the
respective dates on which such Investments were made, less any net return of capital realized
during such period upon the sale, repayment or other liquidation of such Investments (determined in
accordance with GAAP, but without regard to any amounts received during such period as earnings (in
the form of dividends not constituting a return of capital, interest or otherwise) on such
Investments or as loans from any Person in whom such Investments have been made).

“Investment Condition” has the meaning specified in Section 7.13(a).

“Investment Limit” has the meaning specified in Section 8.4(c).

“IRS” means the Internal Revenue Service, and any Governmental Authority succeeding to any of
its principal functions under the Code.

“Keep Well Agreement” means that certain Keep Well Agreement, dated as of August 21, 2001,
between the Borrower and Columbia Propane Corporation (renamed AEPI).

“Lending Office” means, as to any Bank, the office or offices of such Bank specified as its
“Lending Office” or “Domestic Lending Office” or “Eurodollar Lending Office”, as the case may be,
on Schedule 12.2, or such other office or offices as such Bank may from time to time notify
the Borrower and the Agent.

“Leverage Ratio” means, as of any date of determination, the ratio of (i) Total Debt to (ii)
EBITDA.

“License Agreements” means, collectively, (a) the Software License Agreement, dated April 19,
1995, by and among the General Partner, the Public Partnership, and the Borrower relating to the
FAST and Stars I and II proprietary software systems, (b) the Trademark License Agreement, dated
April 19, 1995, by and among Petrolane, the General Partner, the Public Partnership and the
Borrower, (c) the Trademark License Agreement, dated April 19, 1995, by and among UGI, AmeriGas,
Inc., the General Partner, the Public Partnership and the Borrower and (d) the Trademark License
Agreement, dated April 19, 1995, by and among the General Partner, the Public Partnership and the
Borrower, as the same may be amended, modified or supplemented from time to time.

“Lien” means any security interest, mortgage, deed of trust, pledge, hypothecation,
assignment, charge or deposit arrangement, encumbrance, lien (statutory or other) or preferential
arrangement of any kind or nature whatsoever in respect of any property (including those created
by, arising under or evidenced by any conditional sale or other title retention agreement, the
interest of a lessor under a capital lease, any financing lease having substantially the same
economic effect as any of the foregoing, or the filing of any financing statement naming the owner
of the asset to which such lien relates as debtor, under the Uniform Commercial Code or any
comparable law) and any contingent or other agreement to provide any of the foregoing, but not
including the interest of a lessor under an operating lease.

“Loan” means a Term Loan made by a Bank to the Borrower under Article II, and may be a
Base Rate Loan or a Eurodollar Rate Loan (each, a “Type” of Loan).

“Loan Documents” means this Agreement, any Notes, the Fee Letter, the Security Documents, the
Notice of Borrowing, each Notice of Conversion/Continuation and each Compliance Certificate.

“Long Term Funded Debt” means, as applied to any Person, all Indebtedness of such Person which
by its terms or by the terms of any instrument or agreement relating thereto matures one year or
more from the date of execution of the instruments governing any such Indebtedness or, if
applicable, the execution of any instrument extending the maturity date of such Indebtedness,
provided, that Long Term Funded Debt shall include any Indebtedness which does not
otherwise come within the foregoing definition but which is directly or indirectly renewable or
extendible at the option of the debtor to a date one year or more (including an option of the
debtor under a revolving credit or similar agreement obligating the lender or lenders to extend
credit over a period of one year or more) from the date of execution of the instruments governing
any such Indebtedness or, if applicable, the execution of any instrument extending the maturity
date of such Indebtedness.

“Margin Stock” means “margin stock” as such term is defined in Regulation U or X of the FRB.

“Material Adverse Effect” means (a) a material adverse effect on the business, Assets or
financial condition of the Borrower and its Restricted Subsidiaries taken as a whole; (b) a
material impairment of the ability of the Borrower or any Restricted Subsidiary to perform any of
its obligations under this Agreement, the Notes or the Security Documents to which it is a party;
or (c) a material impairment of the legal, valid, binding and enforceable nature of the Security
Documents or of the validity and priority of the Liens created thereby on the General Collateral.

“Maturity Date” means the earlier to occur of:

(a) October 1, 2006; and

(b) the date on which the Term Loan Commitment terminates in accordance with the provisions of
this Agreement.

“Mortgaged Property” means the real properties referred to as the “Mortgaged Property” in the
granting clauses of the Mortgages.

“Mortgages” shall have the meaning specified in the definition of Security Documents.

“Multiemployer Plan” means a “multiemployer plan”, within the meaning of Section 4001(a)(3) of
ERISA, with respect to which the Borrower or any ERISA Affiliate may have any liability.

“Multiple Employer Plan” means a single employer plan, as defined in Section 3(41) or
4001(a)(15) of ERISA, that is subject to Title IV of ERISA and that (i) is maintained for employees
of the Borrower or an ERISA Affiliate and at least one Person other than the Borrower and its ERISA
Affiliates or (ii) was so maintained and in respect of which the Borrower or an ERISA Affiliate
could have liability under Section 4063, 4064 or 4069 of ERISA.

“National Propane Purchase Agreement” means that certain Purchase Agreement, dated April 5,
1999, by and among AEPLP, AEPH, AEPI, National Propane Partners, L.P., National Propane
Corporation, National Propane SGP, Inc. and Triarc Companies, Inc., as amended, supplemented or
otherwise modified from time to time.

“Net Amount of Unrestricted Investment” means the sum of, without duplication, (x) the
aggregate amount of all Investments made after the date hereof pursuant to Section 8.4(h)
(computed as provided in the last sentence of the definition of Investment) and (y) the aggregate
of all Designation Amounts in connection with the designation of Unrestricted Subsidiaries pursuant
to the provisions of Section 7.13 less all Designation Amounts in respect of Unrestricted
Subsidiaries which have been designated as Restricted Subsidiaries in accordance with the
provisions of Section 7.13 and otherwise reduced in a manner consistent with the provisions
of the last sentence of the definition of Investment.

“Net Proceeds” means with respect to any Asset Sale, the proceeds thereof in the form of cash
or Cash Equivalents including payments in respect of deferred payment obligations when received in
the form of cash or Cash Equivalents net of (i) reasonable brokerage commissions and other
reasonable fees and expenses (including without limitation reasonable fees and expenses of legal
counsel and accountants and reasonable fees, expenses and discounts or commissions of underwriters,
placement agents and investment bankers) related to such Asset Sale; (ii) provisions for all taxes
payable as a result of such Asset Sale; (iii) amounts required to be paid to any Person (other than
the Borrower or any Restricted Subsidiary) owning a beneficial interest in the assets subject to
such Asset Sale; (iv) appropriate amounts to be provided by the Borrower or any Restricted
Subsidiary, as the case may be, as a reserve required in accordance with GAAP against any
liabilities associated with such Asset Sale and retained by the Borrower or any Restricted
Subsidiary, as the case may be, after such Asset Sale, including, without limitation, pension and
other post-employment benefit liabilities, liabilities related to environmental matters and
liabilities under any indemnification obligations associated with such Asset Sale; and (v) amounts
required to be applied to the repayment of Indebtedness (other than the Notes and the Parity Debt)
secured by a Lien on the asset or assets sold in such Asset Sale.

“Non-AEPLP Restricted Subsidiary” has the meaning specified in Section 8.17(a).

“Non-PP&E Assets” has the meaning specified in Section 8.17(b).

“Note” means a promissory note executed by the Borrower in favor of a Bank pursuant to
Section 2.2(d), substantially in the form of Exhibit G, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the terms hereof.

“Notice of Borrowing” means a notice in substantially the form of Exhibit A.

“Notice of Conversion/Continuation” means a notice in substantially the form of Exhibit
B.

“Obligations” means all advances, debts, liabilities, obligations, covenants and duties
arising under any Loan Document owing by any of the Obligors or other Credit Parties to any Bank,
the Agent or any Indemnified Party, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or hereafter arising.

“Obligors” has the meaning specified in the introductory clause hereto.

“Officers’ Certificate” means as to any corporation, a certificate executed on its behalf by
the Chairman of the Board of Directors (if an officer) or its President or one of its Vice
Presidents, and its Treasurer, or Controller, or one of its Assistant Treasurers or Assistant
Controllers, and, as to any partnership, a certificate executed on behalf of such partnership by
its general partner in a manner which would qualify such certificate (a) if such general partner is
a corporation, as an Officers’ Certificate of such general partner hereunder or (b) if such general
partner is a partnership or other entity, as a certificate executed on its behalf by Persons
authorized to do so pursuant to the constituting documents of such partnership or other entity.

“Organization Documents” means, for any corporation, the certificate or articles of
incorporation, the bylaws, any certificate of determination or instrument relating to the rights of
preferred shareholders of such corporation, any shareholder rights agreement, and all applicable
resolutions of the board of directors (or any committee thereof) of such corporation and as to any
partnership, its partnership agreement, certificate of partnership and related agreements and as to
any other entity, such other entity’s analogous organizational documents, as the same may be
amended, supplemented or otherwise modified from time to time.

“Original Closing Date” means April 19, 1995.

“Other Taxes” means (i) any present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies which arise from any payment made hereunder or from
the execution, delivery or registration of, or otherwise with respect to, this Agreement or any
other Loan Documents and (ii) any documentary stamp taxes and nonrecurring intangible personal
property taxes payable under Chapters 199 and 201 of the Florida Statutes.

“Parity Debt” means the Series A-C First Mortgage Notes, the Series D First Mortgage Notes,
the Series E First Mortgage Notes, Indebtedness under the Existing Credit Agreement, Indebtedness
under this Agreement and the Notes and other Indebtedness of the Borrower incurred in accordance
with Section 8.1(a), (b), (e), (f) and (l) and secured by
the respective Liens of the Security Documents in accordance with Section 8.3(j),
(k), (l) and (m).

“Participant” has the meaning specified in Section 12.9(e).

“Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of the
Borrower, as in effect on the Closing Date, and as the same may from time to time be amended,
supplemented or otherwise modified.

“Partnership Unrestricted Subsidiaries” means the Unrestricted Subsidiaries of the Public
Partnership as defined in the Public Partnership Indenture as in effect on the Closing Date.

“PBGC” means the Pension Benefit Guaranty Corporation, or any Governmental Authority
succeeding to any of its principal functions under ERISA.

“Pension Plan” means a “pension plan”, as such term is defined in section 3(2) of ERISA, which
is subject to Title IV of ERISA (other than a multiemployer plan as defined in section 4001(a)(3)
of ERISA) with respect to which the Borrower or any ERISA Affiliates may have any liability.

“Permitted Banks” has the meaning specified in Section 8.4(a).

“Permitted Insurers” means (a) insurers with ratings of A or better according to Best’s
Insurance Reports, or with comparable ratings from a comparable rating agency for insurance
companies whose principal offices are located outside of the United States and Canada, and with
assets of no less than $500 million and (b) the underwriters at Lloyd’s, London.

“Person” means an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture or Governmental
Authority or other entity.

“Petrolane” has the meaning specified in the introductory clause hereto.

“Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) which the Borrower
sponsors or maintains or to which the Borrower makes, is making, or is obligated to make
contributions and includes any Pension Plan.

“PP&E Acquisition/Investment/Transfer Limit” has the meaning specified in Section
8.15.

“PP&E Assets” means assets that would, in accordance with GAAP, be classified and accounted
for as “property, plant and equipment” on the consolidated balance sheet of the Borrower and the
Restricted Subsidiaries.

“PP&E Transfer” has the meaning specified in Section 8.17(b).

“PPD/GP Debt Contribution” means the amount of aggregate net cash proceeds previously received
by the Borrower from time to time from the Public Partnership as a capital contribution made with
the proceeds of Public Partnership Indebtedness and the General Partner in connection with its
related and contemporaneous capital contribution and designated as such by such Persons at the time
of contribution in the corporate or other records of such Persons.

“Preferred Stock”, as applied to the Capital Stock of any Person, means Capital Stock of any
class or classes (however designated), which is preferred as to the payment of distributions or
dividends, or upon any voluntary or involuntary liquidation or dissolution of such Person, over
shares or units of Capital Stock of any other class of such Person.

“Pricing Tier” has the meaning specified in the definition of “Applicable Margin.”

“Prime Rate” means, at any time, the rate of interest in effect for such day as publicly
announced from time to time by Wachovia as its “prime rate” (which is not necessarily the lowest
rate charged to any customer). Any change in such rate announced by Wachovia shall take effect at
the opening of business on the day specified in the public announcement of such change.

“Pro Rata Share” means, as to any Bank at any time, the percentage equivalent (expressed as a
decimal, rounded to the ninth decimal place) at such time of such Bank’s Term Loan Commitment
divided by the combined Term Loan Commitments of all Banks.

“Public Partnership” means AmeriGas Partners, L.P., a Delaware limited partnership.

“Public Partnership Indenture” means each of the Indentures among the Public Partnership, its
financing subsidiaries, and Wachovia (formerly known as First Union National Bank), as trustee,
with respect to the Public Partnership Notes, as the same may be amended, supplemented or otherwise
modified from time to time.

“Public Partnership Notes” means the notes issued, from time to time, jointly and severally,
by the Public Partnership and its financing subsidiaries, as the same may be amended, supplemented
or otherwise modified from time to time.

“Purchase Money Lien” has the meaning specified in Section 8.3(n).

“Redeemable Capital Stock” means any shares of any class or series of Capital Stock, that,
either by the terms thereof, by the terms of any security into which it is convertible or
exchangeable or by contract or otherwise, is or upon the happening of an event or passage of time
would be, required to be redeemed prior to the date of the last scheduled payment of any Loan then
outstanding or is redeemable at the option of the holder thereof at any time prior to such date, or
is convertible into or exchangeable for Indebtedness at any time prior to such date.

“Reference Period” shall have the meaning specified in the definition of Consolidated Cash
Flow.

“Replacement Bank” has the meaning specified in Section 4.7.

“Reportable Event” means, any of the events set forth in Section 4043(b) of ERISA or the
regulations thereunder, other than any such event for which the 30-day notice requirement under
ERISA has been waived in regulations issued by the PBGC.

“Required Banks” means at any time Banks then holding at least 66-2/3% of the then aggregate
unpaid principal amount of the Loans.

“Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or
regulation or determination of an arbitrator or of a Governmental Authority, in each case
applicable to or binding upon the Person or any of its property or to which the Person or any of
its property is subject.

“Resource Conservation and Recovery Act” means the Resource Conservation and Recovery Act, 42
U.S.C. Section 690, et seq., as in effect from time to time.

“Responsible Officer” means the chief executive officer or the president of the Borrower, or
any other officer having substantially the same authority and responsibility; or, with respect to
compliance with financial covenants, the chief financial officer or the treasurer of the Borrower,
or any other officer having substantially the same authority and responsibility.

“Restricted Payment” means with respect to the Borrower and its Restricted Subsidiaries (the
“Covered Persons”), (a) in the case of any Covered Person that is a partnership, (i) any payment or
other distribution, direct or indirect, in respect of any partnership interest in such Covered
Person, except a distribution payable solely in additional partnership interests in such Covered
Person, and (ii) any payment, direct or indirect, by such Covered Person on account of the
redemption, retirement, purchase or other acquisition of any partnership interest in such Covered
Person, except to the extent that such payment consists of additional partnership interests in such
Covered Person; or (b) in the case of any Covered Person that is a corporation, (i) any dividend or
other distribution, direct or indirect, on account of any shares of any class of stock of such
Covered Person then outstanding, except a dividend payable solely in shares of stock of such
Covered Person, and (ii) any payment, direct or indirect, by such Covered Person on account of the
redemption, retirement, purchase or other acquisition of any shares of any class of stock of such
Covered Person then outstanding, or of any warrants, rights or options, to acquire any such shares,
except to the extent that such payment consists of shares of Capital Stock of such Covered Person;
(c) in the case of any Covered Person that is a limited liability company, (i) any payment or other
distribution, direct or indirect, in respect of any membership interest in such Covered Person,
except a distribution payable solely in additional membership interests in such Covered Person, and
(ii) any payment, direct or indirect, by such Covered Person on account of the redemption,
retirement, purchase or other acquisition of any membership interest in such Covered Person, except
to the extent that such payment consists of additional membership interests in such Covered Person;
or (d) any indemnification payment made by AEPLP, AEPH or AEPI pursuant to the Tax Indemnity
Provisions (as defined in the National Propane Purchase Agreement), including any payment made by
the Borrower to AEPI pursuant to the Keep Well Agreement.

“Restricted Subsidiary” means any Subsidiary of the Borrower organized under the laws of the
United States or any state thereof or Canada or any province thereof or the District of Columbia,
none of the Capital Stock or ownership interests of which is owned by Unrestricted Subsidiaries and
substantially all of the operating assets of which are located in, and substantially all of the
business of which is conducted within, the United States or Canada and which is designated as a
Restricted Subsidiary in Schedule 6.2 or which shall be designated as a Restricted
Subsidiary by the General Partner at a subsequent date as provided in Section 7.13;
provided, however, that (a) to the extent a newly formed or acquired Subsidiary is
not declared either a Restricted Subsidiary or an Unrestricted Subsidiary within 90 days of its
formation or acquisition, such Subsidiary shall be deemed a Restricted Subsidiary and (b) a
Restricted Subsidiary may be designated as an Unrestricted Subsidiary in accordance with the
provisions of Section 7.13.

“Routine Permits” has the meaning specified in Section 6.8(a).

“Sale and Lease-Back Transaction” of a Person (a “Transferor”) means any arrangement (other
than between the Borrower and a Wholly-Owned Restricted Subsidiary or between Wholly-Owned
Restricted Subsidiaries) whereby (a) property (the “Subject Property”) has been or is to be
disposed of by such Transferor to any other Person with the intention on the part of such
Transferor of taking back a lease of such Subject Property pursuant to which the rental payments
are calculated to amortize the purchase price of such Subject Property substantially over the
useful life of such Subject Property, and (b) such Subject Property is in fact so leased by such
Transferor or an Affiliate of such Transferor.

“Sale Condition” has the meaning specified in Section 7.13(a).

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding
to any of its principal functions.

“Security Documents” means (a) the Collateral Agency Agreement, (b) each of (i) the mortgage,
assignment of leases and rents, security agreement, financing statement and fixture filings made by
the Borrower in favor of the Collateral Agent, (ii) the deed of trust, assignment of leases and
rents, security agreement, financing statement and fixture filings made by the Borrower in favor of
the Collateral Agent and (iii) the deed to secure debt, assignment of leases and rents, security
agreement, financing statement and fixture filings made by the Borrower in favor of the Collateral
Agent, each dated on or before the Closing Date, those executed after the Closing Date by the
Borrower as required by Section 7.10 and those executed by Restricted Subsidiaries after
the Closing Date as required by Section 7.9 (as each of the same may be amended,
supplemented, assigned or otherwise modified from time to time, collectively, the “Mortgages”), (c)
the General Security Agreement, (d) the Subsidiary Security Agreement and (e) the Subsidiary
Guarantee.

“Series A-C First Mortgage Notes” means the First Mortgage Notes, Series A through C, in an
aggregate principal amount not exceeding $518,000,000, issued pursuant to that certain Note
Agreement, dated as of April 12, 1995, among the Borrower, the General Partner, Petrolane and the
purchasers named in Schedule I thereto, as amended, supplemented, assigned or otherwise modified
from time to time.

“Series D First Mortgage Notes” means the First Mortgage Notes, Series D, in aggregate
principal amount not exceeding $70,000,000, issued pursuant to that certain Note Agreement, dated
as of March 15, 1999, among the Borrower, the General Partner and the purchasers named in Schedule
I thereto, as amended, supplemented, assigned or otherwise modified from time to time.

“Series E First Mortgage Notes” means the First Mortgage Notes, Series E, in an aggregate
principal amount of $80,000,000, issued pursuant to that certain Note Agreement, dated as of March
15, 2000, among the Borrower, the General Partner and the purchasers named in Schedule I thereto,
as amended, supplemented, assigned or otherwise modified from time to time.

“Significant Subsidiary Group” means any Subsidiary of the Borrower which is, or any group of
Subsidiaries of the Borrower all of which are, at any time of determination, subject to one or more
of the proceedings or conditions described in subsection (f) or (g) of Section
9.1 and which Subsidiary or group of Subsidiaries accounted for (or in the case of a recently
formed or acquired Subsidiary would have so accounted for on a pro forma basis) more than 1% of
consolidated operating revenues of the Borrower for the fiscal year most recently ended or more
than 1% of consolidated Total Assets of the Borrower as of the end of the most recently ended
fiscal quarter, in each case computed in accordance with GAAP.

“Special Rating” means a risk-based capital factor attributable to Indebtedness for purposes
of generally applicable state insurance regulations for life, health and disability insurance
companies, substantially equivalent to an investment grade rating issued by a nationally recognized
credit rating agency.

“Subject Property” shall have the meaning specified in the definition of Sale and Lease-Back
Transaction.

“Subsidiary” means, with respect to any Person, any corporation, limited liability company,
partnership, joint venture, association, trust or other entity of which (or in which) more than 50%
of (a) the issued and outstanding Capital Stock having ordinary voting power to elect a majority of
the board of directors of such corporation (irrespective of whether at the time Capital Stock of
any other class or classes of such corporation shall or might have voting power upon the occurrence
of any contingency), (b) the interests in the capital or profits of such partnership, limited
liability company, joint venture or association with ordinary voting power to elect a majority of
the board of directors (or Persons performing similar functions) of such partnership, limited
liability company, joint venture or association, or (c) the beneficial interests in such trust or
other entity with ordinary voting power to elect a majority of the board of trustees (or Persons
performing similar functions) of such trust or other entity, is at the time directly or indirectly
owned or controlled by such Person, by such Person and one or more of its other Subsidiaries, or by
one or more of such Person’s other Subsidiaries.

“Subsidiary Guarantee” means that certain Restricted Subsidiary Guarantee, dated as of April
19, 1995, by all of the Restricted Subsidiaries (other than AEPLP and any Subsidiary of AEPLP) for
the benefit of the Collateral Agent, as the same may be amended, supplemented, assigned or
otherwise modified from time to time.

“Subsidiary Security Agreement” means that certain Subsidiary Security Agreement, dated as of
April 19, 1995, among all of the Restricted Subsidiaries (other than AEPLP and any Subsidiary of
AEPLP), the Collateral Agent and Mellon Bank, N.A., as Cash Collateral Sub-Agent, as the same may
be amended, supplemented, assigned or otherwise modified from time to time.

“Surety Instruments” means all letters of credit (including standby and commercial), bankers
acceptances, bank guaranties, shipside bonds, surety bonds and similar instruments.

“Swap Contract” means any agreement (including any master agreement and any agreement, whether
or not in writing, relating to any single transaction) that is an interest rate swap agreement,
basis swap, forward rate agreement, commodity swap, commodity option, equity or equity index swap
or option, bond option, interest rate option, forward foreign exchange agreement, rate cap, collar
or floor agreement, currency swap agreement, cross-currency rate swap agreement, swaption, currency
option or any other, similar agreement (including any option to enter into any of the foregoing).

“Taxes” means any and all present or future taxes, levies, imposts or withholdings, and all
penalties, interest and additions to taxes with respect thereto, excluding, in the case of each
Bank and the Agent, such taxes (including income taxes or franchise taxes) as are imposed on or
measured by each Bank or Agent’s net income or capital by the jurisdiction (or any political
subdivision thereof) under the laws of which such Bank or the Agent, as the case may be, is
organized or maintains a lending office.

“Term Loan” has the meaning specified in Section 2.1.

“Term Loan Commitment” has the meaning specified in Section 2.1.

“Total Assets” means as of any date of determination, the consolidated total assets of the
Borrower and the Restricted Subsidiaries as would be shown on a consolidated balance sheet of the
Borrower and the Restricted Subsidiaries prepared in accordance with GAAP as of that date.

“Total Debt” means as of any date of determination, the aggregate principal amount of all
Indebtedness of the Borrower and the Restricted Subsidiaries at the time outstanding (other than
Indebtedness permitted by Section 8.1(c)). For purposes of computing the Leverage Ratio
pursuant to Section 8.14, Total Debt shall also include the obligations described in
clause (c) of the definition of “Contingent Obligation.”

“Transfer” has the meaning specified in Section 8.17(b).

“Transferor” shall have the meaning specified in the definition of Sale and Lease-Back
Transaction.

“Type” has the meaning specified in the definition of “Loan.”

“UGI” means UGI Corporation, a Pennsylvania corporation.

“United States” and “U.S.” each means the United States of America.

“Unrestricted Subsidiary” means a Subsidiary of the Borrower which is not a Restricted
Subsidiary.

“Wachovia” means Wachovia Bank, National Association and its successors.

“Wholly-Owned Restricted Subsidiary” means any Restricted Subsidiary that is also a
Wholly-Owned Subsidiary of the Borrower.

“Wholly-Owned Subsidiary” means, as applied to any Subsidiary of any Person, a Subsidiary in
which (other than directors’ qualifying shares required by law) 100% of the Capital Stock of each
class having ordinary voting power, and 100% of the Capital Stock of every other class, in each
case, at the time as of which any determination is being made, is owned, beneficially and of
record, by such Person, or by one or more of such Person’s other Wholly-Owned Subsidiaries, or
both; provided, that for the purposes of this Agreement, (a) AEPLP shall be deemed a
“Wholly-Owned Subsidiary” of the Borrower for so long as the Borrower directly or indirectly owns
at least 99% of the Capital Stock of AEPLP and 100% of the general partnership interests therein,
and (b) AmeriGas Eagle Parts & Service shall be deemed a “Wholly-Owned Subsidiary” of the Borrower
for so long as (i) AEPLP remains a Restricted Subsidiary and a “Wholly-Owned Subsidiary” of the
Borrower and (ii) AEPLP directly or indirectly owns at least 100% of the Capital Stock of AmeriGas
Eagle Parts & Service.

“Yearly Threshold” has the meaning specified in Section 8.15.

1.2 Other Interpretive Provisions. (a) The meanings of defined terms are equally
applicable to the singular and plural forms of the defined terms.

(b) The words “hereof”, “herein”, “hereunder” and similar words refer to this Agreement as a
whole and not to any particular provision of this Agreement; and subsection, Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

(c) (i) The term “including” is not limiting and means “including without limitation.”

(ii) In the computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including”; the words “to” and “until” each mean “to but
excluding”, and the word “through” means “to and including.”

(d) Unless otherwise expressly provided herein, (i) references to agreements (including this
Agreement) and other contractual instruments shall be deemed to include all subsequent amendments
and other modifications thereto, but only to the extent such amendments and other modifications are
not prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation
are to be construed as including all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting the statute or regulation.

(e) The captions and headings of this Agreement are for convenience of reference only and
shall not affect the interpretation of this Agreement.

(f) This Agreement and other Loan Documents may use several different limitations, tests or
measurements to regulate the same or similar matters. All such limitations, tests and measurements
are independent and shall each be performed in accordance with their terms.

(g) This Agreement and the other Loan Documents are the result of negotiations among and have
been reviewed by counsel to the Agent, the Borrower and the other parties, and are the products of
all parties. Accordingly, they shall not be construed against the Banks or the Agent merely
because of the Agent’s or Banks’ involvement in their preparation.

1.3 Accounting Principles. (a) Unless otherwise specified, all accounting terms used
herein or in any other Loan Document shall be interpreted, all accounting determinations and
computations hereunder or thereunder shall be made, and all financial statements required to be
delivered hereunder or thereunder shall be prepared in accordance with, those generally accepted
accounting principles in effect in the United States of America from time to time (“GAAP”).
Notwithstanding the foregoing, if the Borrower, the Required Banks or the Agent determines that a
change in GAAP from that in effect on the date hereof has altered the treatment of certain
financial data to its detriment under this Agreement, such party may seek of the others a
renegotiation of any financial covenant affected thereby. If the Borrower, the Required Banks and
Agent cannot agree on renegotiated covenants, then, for the purposes of this Agreement, GAAP will
refer to generally accepted accounting principles on the date just prior to the date on which the
change that gave rise to the renegotiation occurred.

(b) References herein to “fiscal year” and “fiscal quarter” refer to such fiscal periods of
the Borrower.

ARTICLE II

THE CREDITS

2.1 Amounts and Terms of Term Loan Commitment. Each Bank severally agrees, on the
terms and conditions set forth herein, to make loans to the Borrower (each such loan, a “Term
Loan”) on the Closing Date in an aggregate principal amount not to exceed the amount set forth
opposite such Bank’s name on Schedule 2.1 (the Bank’s “Term Loan Commitment”). Term Loans,
if repaid or prepaid, may not be re-borrowed.

2.2 Loan Accounts. (a) The Loans made by each Bank shall be evidenced by one or more
loan accounts or records maintained by such Bank in the ordinary course of business. Each Bank
will make reasonable efforts to maintain the accuracy of its loan account or accounts and to update
promptly its loan account or accounts from time to time, as necessary.

(b) The Agent shall maintain the Register pursuant to Section 12.9(d) and a loan subaccount
for each Bank, in which Register and loan subaccount (taken together) shall be recorded (i) the
date, amount, and Interest Period, if applicable, of each Loan, and whether such Loan is a Base
Rate Loan or a Eurodollar Rate Loan, (ii) the amount of any principal or interest due and payable
or to become due and payable to each Bank hereunder and (iii) the amount of any sum received by the
Agent hereunder from or for the loan account of the Borrower and each Bank’s percentage share
thereof. The Agent will make reasonable efforts to maintain the accuracy of the subaccounts
referred to in the preceding sentence and to update promptly such loan subaccounts from time to
time, as necessary.

(c) The entries made in the Register and loan subaccounts maintained pursuant to subsection
(b) of this Section 2.2, to the extent permitted by applicable law, shall be prima facie
evidence of the existence and amounts of such obligations of the Borrower therein recorded;
provided, however, that the failure of the Agent or any Bank to maintain any such
Register, loan subaccount or loan account, as applicable, or any error therein, shall not in any
manner affect the obligations of the Borrower to repay the Loans in accordance with the terms
thereof.

(d) Upon the request of any Bank made through the Agent, and at the expense of the Borrower,
the Loans made by such Bank may be evidenced by one or more Notes, instead of loan accounts. Each
such Bank shall endorse on the schedules annexed to its Note(s) the date, amount and maturity of
each Loan made by it and the amount of each payment of principal made by the Borrower with respect
thereto. Each such Bank is irrevocably authorized by the Borrower to so endorse its Note(s) and
each Bank’s record shall be rebuttable presumptive evidence of the amount of the Loans made by such
Bank to the Borrower and the interest and principal payments thereof; provided,
however, that the failure of a Bank to make, or an error in making, a notation thereon with
respect to any Loan shall not limit or otherwise affect the obligations of the Borrower hereunder
or under any such Note to pay any amount owing with respect to the Loans made by such Bank.

(e) Each Bank represents that at no time shall any part of the funds used to make any Loan
constitute, or deemed under ERISA, the Code or any other applicable law, or any ruling or
regulation issued thereunder, or any court decision, to constitute, the assets of any employee
benefit plan (as defined in section 3(3) of ERISA) or any plan (as defined in section 4975(e)(1) of
the Code).

2.3 Procedure for Borrowing. (a) The Borrowings of the Loans shall be made upon the
Borrower’s irrevocable written notice delivered to the Agent in the form of a Notice of Borrowing
(which notice must be received by the Agent prior to 1:00 p.m.) (New York City time) (i) three
Business Days prior to the Closing Date, in the case of Eurodollar Rate Loans; and (ii) one
Business Day prior to the Closing Date, in the case of Base Rate Loans, specifying:

(A) the amount of the Borrowing, which shall be in an aggregate minimum amount
of $5,000,000 in the case of Eurodollar Rate Loans or $1,000,000 in the case of Base
Rate Loans, or any multiple of $1,000,000 in excess thereof; provided,
however, that the Borrower may request (x) up to two Borrowings of Base Rate
Loans in a minimum amount of $500,000 in any fiscal quarter and (y) Borrowings of
Base Rate Loans in such amount as is necessary to pay to the Agent the amounts
required by the last sentence of Section 2.13(a);

(B) the Type of Loans comprising the Borrowing; and

(C) other than in the case of Base Rate Loans, the duration of the Interest
Period applicable to the Loans included in such notice. If the Notice of Borrowing
fails to specify the duration of the Interest Period for any Borrowing comprised of
Eurodollar Rate Loans, such Interest Period shall be one month.

(b) The Agent will promptly notify each Bank of its receipt of the Notice of Borrowing and of
the amount of such Bank’s Pro Rata Share of such Borrowing.

(c) Each Bank will make the amount of its Pro Rata Share of the Borrowing available to the
Agent for the account of the Borrower at the Agent’s Payment Office by 1:00 p.m. (New York City
time) on the Closing Date in funds immediately available to the Agent. The proceeds of all such
Loans will then be made available to the Borrower by the Agent on the Closing Date by crediting the
Borrower’s Account with the aggregate of such amounts made available to the Agent by the Banks and
in like funds as received by the Agent.

(d) After giving effect to any Borrowing, there may not be more than five (5) different
Interest Periods in effect.

2.4 Conversion and Continuation Elections. (a) The Borrower may, upon irrevocable
written notice to the Agent in accordance with Section 2.4(b):

(i) elect, as of any Business Day, in the case of Base Rate Loans, or as of the last day of
the applicable Interest Period, in the case of Eurodollar Rate Loans, to convert any such Loans (or
any part thereof in an amount not less than $5,000,000 in the case of a conversion to a Eurodollar
Rate Loan or $1,000,000 in the case of a conversion to a Base Rate Loan, or that is in an integral
multiple of $1,000,000 in excess thereof) into Loans of the other Type; or

(ii) elect, as of the last day of the applicable Interest Period, to continue as Eurodollar
Rate Loans any Eurodollar Rate Loans having Interest Periods expiring on such day (or any part
thereof in an amount not less than $5,000,000, or that is in an integral multiple of $1,000,000 in
excess thereof);

provided, that if at any time the aggregate amount of Eurodollar Rate Loans in respect of
any Borrowing is reduced, by payment, prepayment, or conversion of part thereof to be less than
$5,000,000, such Eurodollar Rate Loans shall automatically convert into Base Rate Loans, and on and
after such date the right of the Borrower to continue such Loans as, and convert such Loans into,
Eurodollar Rate Loans shall terminate.

(b) The Borrower shall deliver a Notice of Conversion/Continuation to be received by the Agent
not later than 1:00 p.m. (New York City time) (i) three Business Days in advance of the
Conversion/Continuation Date, if the Loans are to be converted into or continued as Eurodollar Rate
Loans; and (ii) one Business Day in advance of the Conversion/Continuation Date, if the Loans are
to be converted into Base Rate Loans, specifying:

(A) the proposed Conversion/Continuation Date;

(B) the aggregate amount of Loans to be converted or continued;

(C) the Type of Loans resulting from the proposed conversion or continuation;
and

(D) other than in the case of conversions into Base Rate Loans, the duration of
the requested Interest Period.

(c) If upon the expiration of any Interest Period, the Borrower has failed to select timely a
new Interest Period to be applicable to the Eurodollar Rate Loans having the expired Interest
Period or if any Default or Event of Default then exists, the Borrower shall be deemed to have
elected to convert such Eurodollar Rate Loans into Base Rate Loans effective as of the expiration
date of such Interest Period.

(d) The Agent will promptly notify each Bank of its receipt of a Notice of
Conversion/Continuation, or, if no timely notice is provided by the Borrower, the Agent will
promptly notify each Bank of the details of any automatic conversion. All conversions and
continuations shall be made ratably according to the respective outstanding principal amounts of
the Loans with respect to which the notice was given held by each Bank.

(e) Unless the Required Banks otherwise agree, during the existence of a Default or unless all
the Banks otherwise agree, during the existence of an Event of Default, the Borrower may not elect
to have a Loan converted into or continued as a Eurodollar Rate Loan.

(f) After giving effect to any conversion or continuation of Loans, there may not be more than
five (5) different Interest Periods in effect.

2.5 Reserved.

2.6 Optional Prepayments. Subject to Section 4.4, the Borrower may, upon
written notice to the Agent, at any time or from time to time voluntarily prepay Loans in whole or
in part without premium or penalty; provided, that such notice must be received by the
Agent not later than 1:00 p.m. (New York City time) (A) three Business Days prior to any date of
prepayment of Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans; provided,
further, that any partial prepayments shall be in an aggregate minimum amount of $3,000,000 or any
multiple of $1,000,000 in excess thereof. Such notice of prepayment shall be irrevocable and
specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid. The Agent
will promptly notify each Bank of its receipt of any such notice, and of such Bank’s Pro Rata Share
of such prepayment. If such notice is given by the Borrower, the Borrower shall make such
prepayment and the payment amount specified in such notice shall be due and payable on the date
specified therein, together with, in the case of Eurodollar Rate Loans, accrued interest to such
date on the amount prepaid and any amounts required pursuant to Section 4.4.

2.7 Mandatory Prepayments of Loans.

(a) Asset Sales. In the event that any Asset Sale results in Excess Sale Proceeds
which are not applied as provided in Section 8.8(c)(ii)(B)(x), such Excess Sale Proceeds
shall be applied to the prepayment of Parity Debt on a pro rata basis based upon the aggregate
principal amount of Parity Debt then outstanding (assuming, with respect to revolving debt, that
the maximum commitment amount is outstanding). Such prepayments shall be allocated among the Banks
according to their respective Pro Rata Shares.

(b) Other Prepayments. In the event of a prepayment or mandatory repurchase of the
First Mortgage Notes or other Parity Debt not governed by Section 2.7(a) after the
Acquisition Loan Termination Date (as defined in the Existing Credit Agreement), the Loans shall be
prepaid in a pro rata amount, such pro rata amount based upon the maximum commitment amount of
Parity Debt.

2.8 Repayment. The Borrower shall repay to the Banks in full on the Maturity Date the
aggregate principal amount of Loans outstanding on such date, together with all accrued and unpaid
interest thereon.

2.9 Interest. (a) Each Loan shall bear interest on the outstanding principal amount
thereof from the Closing Date at a rate per annum equal to the Eurodollar Rate or the Base Rate, as
the case may be (and subject to the Borrower’s right to convert to the other Type of Loan under
Section 2.4), plus the Applicable Margin.

(b) Interest on each Loan shall be paid in arrears on each Interest Payment Date. Interest
shall also be paid on the date of any prepayment of Eurodollar Rate Loans under Section 2.6
or 2.7 for the portion of the Loans so prepaid and upon payment (including prepayment) in
full thereof and, during the existence of any Event of Default, interest shall be paid on demand of
the Agent at the request or with the consent of the Required Banks.

(c) Notwithstanding subsection (a) of this Section, if any amount of principal of or
interest on any Loan, or any other amount payable hereunder or under any other Loan Document is not
paid in full when due (whether at stated maturity, by acceleration, demand or otherwise), the
Borrower agrees to pay interest on such unpaid principal or other amount, from the date such amount
becomes due to the date such amount is paid in full, and after as well as before any entry of
judgment thereon to the extent permitted by law, payable on demand (but not more frequently than
once per week), at a fluctuating rate per annum equal to the Base Rate, plus 2%.

(d) Anything herein to the contrary notwithstanding, the obligations of the Borrower hereunder
shall be subject to the limitation that payments of interest shall not be required for any period
for which interest is computed hereunder, to the extent (but only to the extent) that contracting
for or receiving such payment would be contrary to the provisions of any applicable law limiting
the highest rate of interest that may be lawfully contracted for, charged or received by the Agent
or applicable Bank, and in such event the Borrower shall pay such Bank interest for such period at
the highest rate permitted by applicable law.

2.10 Fees. (a) Fee Letter. The Borrower shall pay all fees as required by
the letter agreement (“Fee Letter”) between the Borrower and the Agent dated March 24, 2005.

(b) Facility Fees. The Borrower shall pay on the last Business Day of each calendar
quarter to the Agent for the account of each Bank a facility fee on the daily average amount of
such Bank’s Term Loan Commitment from the date hereof until the Maturity Date, at the rate per
annum set forth below for each Pricing Tier as such Pricing Tier is applicable:

	 	 	 	 	 	 	 	 	 
	Pricing Tier	 	Funded Debt Ratio	 	Facility Fee Rate
	I
	 	Less than or equal to 2.25x             
	 	 	0.2500	%
	II
	 	Greater than 2.25 x but less            
	 	 	0.2500	%
	 
	 	than or equal to 2.75x
	 	 	 	 
	III
	 	Greater than 2.75 x but less            
	 	 	0.3750	%
	 
	 	than or equal to 3.25x
	 	 	 	 
	IV
	 	Greater than 3.25 x but less            
	 	 	0.3750	%
	 
	 	than or equal to 3.75x
	 	 	 	 
	V
	 	Greater than 3.75x but less             
	 	 	0.5000	%
	 
	 	than or equal to 4.25x
	 	 	 	 
	VI
	 	Greater than 4.25x but less             
	 	 	0.5000	%
	 
	 	than or equal to 4.75x
	 	 	 	 
	VII
	 	Greater than 4.75                       
	 	 	0.5000	%

For the purpose of determining the applicable Pricing Tier pursuant to this Section 2.10(b)
and subject to the last sentence of this paragraph, EBITDA shall be determined as at the end of
each fiscal quarter for the four fiscal quarters then ending and Funded Debt shall be determined as
at the end of each fiscal quarter for which such calculation is being determined. Pricing changes
shall be effective on the later of (i) 45 days after the end of each of the first three fiscal
quarters of each fiscal year and 90 days after each fiscal year end and (ii) the Agent’s receipt of
financial statements hereunder for such fiscal quarter or fiscal year; provided,
however, that if the financial statements are not delivered when due in accordance with
Section 7.1, then Pricing Tier VII shall apply as of the first Business Day after the date
on which such financial statements were required to have been delivered until the date upon which
such financial statements are delivered to the Agent. For the period from the Closing Date through
the effective date of the next applicable pricing change pursuant hereto, the applicable Pricing
Tier shall be Pricing Tier I.

2.11 Computation of Fees and Interest. (a) All computations of interest for Base
Rate Loans when the Base Rate is determined by the Prime Rate shall be made on the basis of a year
of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees
and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in
more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).
Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made shall, subject to
Section 2.12(a), bear interest for one day.

(b) Each determination of an interest rate by the Agent shall be conclusive and binding on the
Borrower and the Banks in the absence of manifest error.

2.12 Payments by the Borrower. (a) All payments to be made by the Borrower shall be
made without set-off, recoupment or counterclaim. Except as otherwise expressly provided herein,
all payments by the Borrower shall be made to the Agent for the account of the Banks at the Agent’s
Payment Office, and shall be made in dollars and in immediately available funds, no later than 1:00
p.m. (New York City time) on the date specified herein. The Agent will promptly distribute to
each Bank its Pro Rata Share (or other applicable share as expressly provided herein) of such
payment in like funds as received. Any payment received by the Agent later than 1:00 p.m. (New
York City time) shall be deemed to have been received on the following Business Day and any
applicable interest or fee shall continue to accrue to such Business Day.

(b) Subject to the provisions set forth in the definition of “Interest Period” herein,
whenever any payment is due on a day other than a Business Day, such payment shall be made on the
following Business Day, and such extension of time shall in such case be included in the
computation of interest or fees, as the case may be.

(c) Unless the Agent receives notice from the Borrower prior to the date on which any payment
is due to the Banks that the Borrower will not make such payment in full as and when required, the
Agent may assume that the Borrower has made such payment in full to the Agent on such date in
immediately available funds and the Agent may (but shall not be so required), in reliance upon such
assumption, distribute to each Bank on such due date an amount equal to the amount then due such
Bank. If and to the extent the Borrower has not made such payment in full to the Agent, each Bank
shall repay to the Agent on demand such amount distributed to such Bank, together with interest
thereon at the Federal Funds Rate for each day from the date such amount is distributed to such
Bank until the date repaid.

2.13 Payments by the Banks to the Agent, etc. (a) Unless the Agent receives notice
from a Bank on or prior to the Closing Date that such Bank will not make available as and when
required hereunder to the Agent for the account of the Borrower the amount of that Bank’s Pro Rata
Share of the Borrowing, the Agent may assume that each Bank has made or will make such amount
available to the Agent in immediately available funds on the Closing Date and the Agent may (but
shall not be so required), in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount. If and to the extent any Bank shall not have made the full amount of
its Pro Rata Share of any Borrowing available to the Agent in immediately available funds and the
Agent in such circumstances has made available to the Borrower such amount, that Bank shall on the
Business Day following the Closing Date make such amount available to the Agent, together with
interest at the Federal Funds Rate for each day during such period. A notice of the Agent
submitted to any Bank with respect to amounts owing under this subsection (a) shall be
conclusive, absent manifest error. If such amount is so made available, such payment to the Agent
shall constitute such Bank’s Loan on the date of Borrowing for all purposes of this Agreement. If
such amount is not made available to the Agent on the Business Day following the Closing Date, the
Agent will notify the Borrower of such failure to fund and, upon demand by the Agent, the Borrower
shall pay such amount to the Agent for the Agent’s account, together with interest thereon for each
day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate
applicable at the time to the Loans comprising such Borrowing.

(b) The failure of any Bank to make any Loan on the Closing Date shall not relieve any other
Bank of any obligation hereunder to make a Loan on the Closing Date, but no Bank shall be
responsible for the failure of any other Bank to make the Loan to be made by such other Bank on the
Closing Date. No Bank shall be entitled to take any action to protect or enforce its rights
arising out of any Loan Document without the prior written consent of the Required Banks, including
the exercise, or attempt to exercise, any right of set-off, banker’s lien, or any similar such
action, against any deposit account or property of the Borrower held by any such Bank.

2.14 Sharing of Payments, etc. If, other than as expressly provided elsewhere herein,
any Bank shall obtain on account of the Loans made by it, any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise, except pursuant to
Sections 2.15, 4.7, 12.1, and 12.9) in excess of its Pro Rata
Share, such Bank shall immediately (a) notify the Agent of such fact, and (b) purchase from the
other Banks such participations in the Loans made by them as shall be necessary to cause such
purchasing Bank to share the excess payment pro rata with each of them; provided, that if
all or any portion of such excess payment is thereafter recovered from the purchasing Bank, such
purchase shall to that extent be rescinded and each other Bank shall repay to the purchasing Bank
the purchase price paid therefor, together with an amount equal to such paying Bank’s ratable share
(according to the proportion of (i) the amount of such paying Bank’s required repayment to (ii) the
total amount so recovered from the purchasing Bank) of any interest or other amount paid or payable
by the purchasing Bank in respect of the total amount so recovered. The Borrower agrees that any
Bank so purchasing a participation from another Bank may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off, but subject to Section
12.11) with respect to such participation as fully as if such Bank were the direct creditor of
the Borrower in the amount of such participation. The Agent will keep records (which shall be
conclusive and binding in the absence of manifest error) of participations purchased under this
Section and will in each case notify the Banks following any such purchases or repayments.

ARTICLE III

RESERVED

ARTICLE IV

TAXES, YIELD PROTECTION AND ILLEGALITY

4.1 Taxes. (a) Except as provided in Section 4.1(c), any and all payments by
the Borrower to each Bank or the Agent under this Agreement and any other Loan Document shall be
made free and clear of, and without deduction or withholding for any Taxes. In addition, the
Borrower shall pay all Other Taxes.

(b) The Borrower agrees to indemnify and hold harmless each Bank and the Agent for the full
amount of Taxes or Other Taxes including any Taxes or Other Taxes imposed by any jurisdiction on
amounts payable under this Section paid by the Bank or the Agent (including penalties, interest,
additions to tax and expenses arising therefrom or with respect thereto, whether or not such Taxes
or Other Taxes were correctly or legally asserted). Payment under this indemnification shall be
made within 30 days after the date the Bank or the Agent provides written proof of payment of the
related Taxes or Other Taxes to the Borrower. Such written proof shall be conclusive absent
manifest error.

(c) If the Borrower shall be required by law to deduct or withhold any Taxes or Other Taxes
from or in respect of any sum payable hereunder to any Bank or the Agent, then:

(i) the sum payable shall be increased as necessary so that after making all required
deductions and withholdings (including deductions and withholdings applicable to additional sums
payable under this Section) such Bank or the Agent, as the case may be, receives an amount equal to
the sum it would have received had no such deductions or withholdings been made;

(ii) the Borrower shall make such deductions and withholdings;

(iii) the Borrower shall pay the full amount deducted or withheld to the relevant taxing
authority or other authority in accordance with applicable law; and

(iv) the Borrower shall also pay to each Bank or the Agent for the account of such Bank, at
the time interest is paid, all additional amounts which the respective Bank specifies as necessary
to preserve the after-tax yield the Bank would have received if such Taxes or Other Taxes had not
been imposed.

(d) Within 30 days after their receipt of a written request therefor by Agent, the Borrower
shall furnish the Agent the original or a certified copy of a receipt evidencing any payment by the
Borrower of Taxes or Other Taxes, or other evidence of payment satisfactory to the Agent.

(e) If the Borrower is required to pay additional amounts to any Bank or the Agent pursuant to
subsection (c) of this Section, then such Bank shall use reasonable efforts (consistent
with legal and regulatory restrictions) to change the jurisdiction of its Lending Office so as to
eliminate any such additional payment by the Borrower which may thereafter accrue, if such change
in the judgment of such Bank is not illegal or otherwise disadvantageous to such Bank.

(f) No Foreign Bank shall be entitled to claim that the provisions of this Section 4.1
apply to it with respect to Taxes unless such Foreign Bank shall have delivered to the Agent and
the Borrower, prior to the time that any payments are to be made under this Agreement to such
Foreign Bank, a properly completed (i) Treasury Form W-8ECI, specifying that the payments to be
received by such Foreign Bank pursuant to this Agreement are effectively connected with the conduct
of a United States trade or business or (ii) Treasury Form W-8BEN, specifying that the payments to
be received by such Foreign Bank pursuant to this Agreement are wholly exempt from United States
federal income tax pursuant to the provisions of an applicable income tax treaty with the United
States and, in either case, has otherwise complied with Section 10.13 hereof. Each Foreign
Bank that shall have provided a Form W-8ECI or a Form W-8BEN to the Agent and the Borrower, if
permitted by law, shall be required to provide the Borrower with a new form (also showing no
withholding) no later than 3 years from the date that it provided the original form to the Agent
and the Borrower in order to claim advantage of this Section 4.1 from and after such time.

4.2 Illegality. (a) If the introduction after the date hereof of any Requirement of
Law, or any change after the date hereof in any Requirement of Law, or in the interpretation or
administration of any Requirement of Law, has made it unlawful, or that any central bank or other
Governmental Authority has asserted after the date hereof that it is unlawful, for any Bank or its
applicable Lending Office to make Eurodollar Rate Loans, then, on notice thereof by the Bank to the
Borrower through the Agent, any obligation of that Bank to make Eurodollar Rate Loans shall be
suspended until the Bank notifies the Agent and the Borrower that the circumstances giving rise to
such determination no longer exist.

(b) If it is unlawful for any Bank to maintain any Eurodollar Rate Loan, the Borrower shall,
upon receipt by the Borrower of notice of such fact and demand from such Bank (such notice to be
delivered through the Agent), prepay in full such Eurodollar Rate Loans of that Bank then
outstanding, together with interest accrued thereon, either on the last day of the Interest Period
thereof, if the Bank may lawfully continue to maintain such Eurodollar Rate Loans to such day, or
immediately, if the Bank may not lawfully continue to maintain such Eurodollar Rate Loan. If the
Borrower is required to so prepay any Eurodollar Rate Loan, then concurrently with such prepayment,
the Borrower shall borrow from the affected Bank, in the amount of such prepayment, a Base Rate
Loan.

(c) If the obligation of any Bank to make or maintain Eurodollar Rate Loans has been so
terminated or suspended, the Borrower may elect, by giving notice to the Bank through the Agent
that all Loans which would otherwise be made by the Bank as Eurodollar Rate Loans shall be instead
Base Rate Loans.

(d) Before giving any notice to the Agent under this Section, the affected Bank shall use
reasonable efforts (consistent with legal and regulatory restrictions) to change the jurisdiction
of its Lending Office with respect to its Eurodollar Rate Loans if such change will avoid the need
for giving such notice or making such demand and will not, in the judgment of the Bank, be illegal
or otherwise disadvantageous to the Bank.

4.3 Increased Costs and Reduction of Return. (a) If, due to either (i) the
introduction after the date hereof of, or any change after the date hereof (other than any change
by way of imposition of or increase in reserve requirements included in the calculation of the
Eurodollar Rate or in respect of the assessment rate payable by any Bank to the FDIC for insuring
U.S. deposits) in or in the interpretation of any law or regulation applicable to any Bank (other
than any such introduction or change announced prior to the date hereof) or (ii) the compliance by
any Bank with any guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law) not in effect prior to the date hereof, there shall be any
increase in the cost to such Bank of agreeing to make or making, funding or maintaining any
Eurodollar Rate Loans, then the Borrower shall be liable for, and shall from time to time, upon
demand (such demand to be delivered through the Agent), pay to the Agent for the account of such
Bank additional amounts as are sufficient to compensate such Bank for such increased costs.

(b) If (i) the introduction of any Capital Adequacy Regulation, (ii) any change in any Capital
Adequacy Regulation, (iii) any change in the interpretation or administration of any Capital
Adequacy Regulation by any central bank or other Governmental Authority charged with the
interpretation or administration thereof, or (iv) compliance by any Bank (or its Lending Office) or
any corporation controlling the Bank with any Capital Adequacy Regulation, in each case occurring
after the date hereof, affects or would affect the amount of capital required or expected to be
maintained by the Bank or any corporation controlling the Bank and (taking into consideration such
Bank’s or such corporation’s commercially reasonable policies with respect to capital adequacy and
such Bank’s or such corporation’s desired return on capital) the amount of such capital is
increased as a consequence of its Term Loan Commitment, loans, credits or obligations under this
Agreement, then, upon written demand of such Bank to the Borrower through the Agent, the Borrower
shall pay to the Agent for the account of such Bank, from time to time as specified by the Bank or
such controlling corporation, additional amounts sufficient to compensate the Bank for such
increase.

4.4 Funding Losses. Excluding losses or expenses incurred by a Bank pursuant to
Section 4.2 (other than in connection with Section 4.2(b)), the Borrower shall
reimburse each Bank and hold each Bank harmless from any loss or expense (but excluding in any
event all consequential or exemplary damages) which the Bank may sustain or incur as a consequence
of:

(a) the failure of the Borrower to make on a timely basis any payment of principal of any
Eurodollar Rate Loan;

(b) the failure of the Borrower to borrow, continue or convert into a Eurodollar Rate Loan
after the Borrower has given (or is deemed to have given) a Notice of Borrowing or a Notice of
Conversion/Continuation (except as a result of a breach by a Bank of its obligations hereunder);

(c) the failure of the Borrower to make any prepayment in accordance with any notice delivered
under Section 2.6;

(d) the repayment or prepayment (including pursuant to Sections 2.7 and
4.2(b)) or other payment (including after acceleration thereof) of a Eurodollar Rate Loan
on a day that is not the last day of the relevant Interest Period; or

(e) the automatic conversion under Section 2.4 of any Eurodollar Rate Loan to a Base
Rate Loan on a day that is not the last day of the relevant Interest Period;

including any such loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain its Eurodollar Rate Loans or from fees payable to terminate the deposits from
which such funds were obtained. For purposes of calculating amounts payable by the Borrower to the
Banks under this Section and under Section 4.3(a), each Eurodollar Rate Loan made by a Bank
(and each related reserve, special deposit or similar requirement) shall be conclusively deemed to
have been funded at the Eurodollar Base Rate used in determining the Eurodollar Rate for such
Eurodollar Rate Loan by matching deposit or other borrowing in the interbank eurodollar market for
a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan is in
fact so funded. Each Bank shall exercise its reasonable efforts to minimize such losses, costs and
expenses, except that each Bank shall not be obligated to take any action to reduce net balances
due to its non-U.S. offices from its U.S. offices.

4.5 Inability to Determine Rates. If the Agent or the Required Banks determine that
for any reason adequate and reasonable means do not exist for determining the Eurodollar Rate for
any requested Interest Period with respect to a proposed Eurodollar Rate Loan, or that the
Eurodollar Rate applicable pursuant to Section 2.9(a) for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to
the Banks of funding such Loan, the Agent will promptly so notify the Borrower and each Bank.
Thereafter, the obligation of the Banks to make or maintain Eurodollar Rate Loans hereunder shall
be suspended until the Agent upon the instruction of the Required Banks revokes such notice in
writing. Upon receipt of such notice, the Borrower may revoke any Notice of Borrowing or Notice of
Conversion/Continuation then submitted by it. If the Borrower does not revoke such Notice, the
Banks shall make, convert or continue the Loans, as proposed by the Borrower, in the amount
specified in the applicable notice submitted by the Borrower, but such Loans shall be made,
converted or continued as Base Rate Loans instead of Eurodollar Rate Loans.

4.6 Certificates of Banks. Except as specifically provided in Section 4.1,
any Bank claiming reimbursement or compensation under this Article IV shall deliver to the
Borrower (with a copy to the Agent) a certificate setting forth in reasonable detail the amount
payable to the Bank hereunder and the circumstances giving rise to such claim, and such certificate
shall be prima facie evidence of the correctness thereof. Each Bank agrees to deliver such
certificate to the Borrower within reasonable time after it determines the additional amount
required to be paid under this Article IV; provided, however, that in no
event shall any Bank deliver such Certificate to the Borrower more than 180 days after any
vice-president of such Bank knows, or upon the discharge of such vice-president’s duties in the
ordinary course should have known, of the occurrence of an event giving rise to the additional
amount required to be paid in respect of this Article IV and if it fails to deliver such
Certificate within such 180 day period, the Borrower will not be obligated for any costs incurred
prior to 180 days before such notice. The Borrower shall pay such Bank the amount shown as due on
any such certificate timely delivered in accordance with the foregoing within ten days after its
receipt of the same; provided, however, that the Borrower shall not be required to
pay any amounts (other than with respect to Taxes under Section 4.1) which were due for any
period occurring more than 90 days prior to the Borrower’s receipt of such certificate (other than
periods with respect to which such costs or expenses are retroactively imposed). This Article
IV shall survive termination of this Agreement and payment of the outstanding Notes.
Notwithstanding the foregoing provisions of this Article IV, the Borrower shall not be
liable for any increased cost pursuant to this Article IV if and to the extent that such
increased cost results from the change in any Bank’s Lending Office and such change (x) is made
solely in the discretion of such Bank and not required by any applicable Requirement of Law or
Governmental Authority, (y) is made for such Bank’s benefit and without any benefit to the
Borrower, and (z) results, at the time of such change, in an increased cost greater than that which
would have been incurred had the Bank not so changed its Lending Office. Each Bank shall use its
reasonable efforts to avoid or minimize increased costs under this Article IV unless, in
the sole opinion of such Bank, such action would adversely affect it.

4.7 Substitution of Banks. Upon the receipt by the Borrower from any Bank (an
“Affected Bank”) of a claim for compensation under Section 4.3, the Borrower may: (i)
request the Affected Bank to use its reasonable efforts to obtain a replacement bank or financial
institution satisfactory to the Borrower to acquire and assume all or a ratable part of all of such
Affected Bank’s Loans (a “Replacement Bank”); (ii) request one or more of the other Banks to
acquire and assume all or part of such Affected Bank’s Loans; or (iii) designate a Replacement
Bank. Any such designation of a Replacement Bank under clause (i) or (iii) shall
be subject to the prior written consent of the Agent (which consent shall not be unreasonably
withheld or delayed); provided, that any Replacement Bank shall meet the requirements to be
an Eligible Assignee and the replacement shall be made pursuant to an assignment subject to the
provisions of Section 12.9 and shall be an expense of the Borrower.

4.8 Survival. The agreements and obligations of the Borrower, the Agent and the Banks
in this Article IV shall survive the payment of all other Obligations.

ARTICLE V

CONDITIONS PRECEDENT

5.1 Conditions to Effectiveness. The effectiveness of this Credit Agreement is
subject to the condition that the Agent shall have received all of the following, in form and
substance satisfactory to the Agent and each Bank, and in sufficient copies for each Bank:

(a) Credit Agreement and any Notes. This Agreement, and any Notes requested by the
Banks pursuant to Section 2.2(d), duly executed by each party thereto.

(b) Resolutions; Incumbency.

(i) Copies of partnership authorizations for the Borrower and resolutions of the board of
directors of each of the General Partner and Petrolane authorizing the transactions contemplated
hereby to which it is a party, certified as of the Closing Date by the Secretary or an Assistant
Secretary of such Person; and

(ii) A certificate of the Secretary or Assistant Secretary of each of the General Partner and
Petrolane certifying the names and true signatures of its officers authorized to execute, deliver
and perform, as applicable, on behalf of such Person the Loan Documents to which it is a party.

(c) Organization Documents; Good Standing. Each of the following documents:

(i) the articles or certificate of incorporation and the bylaws of the General Partner and
Petrolane and the Certificate of Limited Partnership and the Partnership Agreement of the Borrower,
in each case as in effect on the Closing Date, certified by the Secretary or an Assistant Secretary
of the General Partner or Petrolane, as applicable, as of the Closing Date; and

(ii) a good standing certificate for Petrolane and the General Partner (and where available,
the Borrower) from the Secretary of State (or similar, applicable Governmental Authority) of its
state of incorporation or organization, as applicable.

(d) Legal Opinion. An opinion of Morgan, Lewis & Bockius LLP, special counsel for the
Credit Parties, in form and substance reasonably satisfactory to the Agent and the Banks.

(e) Payment of Fees. Evidence of payment by the Borrower of all accrued and unpaid
fees, costs and expenses to the extent due and payable hereunder (subject to the limitations set
forth in Section 12.4) on the Closing Date to the Agent and the Banks, together with
Attorney Costs of the Agent to the extent invoiced prior to or on the Closing Date, plus such
additional amounts of Attorney Costs as shall constitute the Agent’s reasonable estimate by
category of Attorney Costs incurred or to be incurred by it through the closing proceedings
(provided, that such estimate shall not thereafter preclude final settling of accounts between the
Borrower and the Agent) including any such costs, fees and expenses arising under or referenced in
Sections 2.10 and 12.4.

(f) Ownership. UGI shall own indirectly more than 45% of the partnership interests of
the Borrower.

(g) Certificate. A certificate signed by a Responsible Officer, dated as of the
Closing Date, stating that:

(i) the representations and warranties contained in Article VI of this Agreement and
in the Collateral Agency Agreement, the Subsidiary Guarantee, the General Security Agreement and
the Subsidiary Security Agreement (except those certain representations and warranties contained in
the General Security Agreement and the Subsidiary Security Agreement that refer to the Schedules or
Annexes of the General Security Agreement and the Subsidiary Security Agreement) are true and
correct in all material respects on and as of such date, as though made on and as of such date
except (x) as affected by the completion of the transactions referred to herein and (y) to the
extent that such representations and warranties expressly relate to an earlier time or date, in
which case such representations and warranties shall have been true and correct in all material
respects as of such earlier time or date;

(ii) there has occurred since December 31, 2004, no event or circumstance that has resulted
in, or presents a reasonable likelihood of having, a Material Adverse Effect;

(iii) no Default of Event of Default shall exist; and

(iv) the condition set forth in clause (f) above shall have been satisfied.

(h) Notice of Borrowing. A Notice of Borrowing.

(i) Consent of Holders of First Mortgage Notes and Other Parity Lenders. Evidence
that the Requisite Percentage (as defined in the Collateral Agency Agreement) (i) has agreed to the
designation of the Indebtedness (as defined in the Collateral Agency Agreement) of the Borrower
issued or incurred under, arising out of, or in connection with, the Notes, this Agreement and the
Fee Letter, including the principal of, prepayment charge, if any, with respect to, and interest on
the Notes and this Agreement (including all reimbursement obligations thereunder) as Parity Debt
for purposes of, and within the meaning of, the First Mortgage Note Agreements, the Existing Credit
Agreement, the Collateral Agency Agreement and the Security Documents, entitled to the benefits and
security of the Security (as defined in the Collateral Agency Agreement) and Security Documents for
the payment thereof on parity with the payment of the other Obligations (as defined in the
Collateral Agency Agreement) in accordance with the terms of the Collateral Agency Agreement and
the Security Documents; and (ii) the Requisite Percentage has directed that each Bank that is a
party to this Agreement constitutes a Parity Lender for purposes of, and within the meaning of, the
Collateral Agency Agreement and the Security Documents.

(j) Other Documents. Such other approvals, opinions, documents or materials as the
Agent or any Bank may reasonably request.

At the request of the Borrower or any Bank, the Agent will confirm in writing to the Banks,
with a copy to the Borrower, whether, and to what extent, the above conditions have been fulfilled.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Agent and each Bank as set forth below in
Sections 6.1 through 6.14 and Sections 6.17 through 6.23, Petrolane
represents and warrants to the Agent and each Bank as set forth below in Section 6.15, and
the General Partner represents and warrants to the Agent and each Bank as set forth below in
Section 6.16 that:

6.1 Organization, Standing, etc. The Borrower is a limited partnership duly
organized, validly existing and in good standing under the Delaware Revised Uniform Limited
Partnership Act and has all requisite partnership power and authority to own and operate its
properties (including without limitation its Assets), to conduct its business, to enter into this
Agreement and such other Loan Documents to which it is a party and to carry out the terms of this
Agreement and such other Loan Documents. Each Restricted Subsidiary is a corporation or limited
partnership, as the case may be, duly organized, validly existing and in good standing under the
laws of its state of incorporation or organization, as the case may be, and has all requisite
corporate power and authority to own and operate its properties (including without limitation its
Assets), to conduct its business and to carry out the terms of this Agreement and such other
Security Documents.

6.2 Partnership Interests and Subsidiaries. The sole general partner of the Borrower
is the General Partner, which on the Closing Date owns a 1.0101% general partnership interest in
the Borrower and is an indirect Wholly-Owned Subsidiary of UGI. On the Closing Date (a) the only
limited partner of the Borrower is the Public Partnership, which owns a 98.9899% limited
partnership interest in the Borrower, and (b) the Borrower does not have any partners other than
the General Partner and the Public Partnership. As of the Closing Date, the Borrower does not have
any Subsidiary other than as set forth on Schedule 6.2 or any Investments in any Person
(other than as set forth on Schedule 6.2 or Investments of the types described in
Section 8.4(a)).

6.3 Qualification; Corporate or Partnership Authorization. The Borrower is duly
qualified or registered and is in good standing as a foreign limited partnership for the
transaction of business, and each of the General Partner, Petrolane and the Restricted Subsidiaries
is qualified or registered and is in good standing as a foreign corporation or foreign limited
partnership for the transaction of business, in the states listed in Schedule 6.3, which
are the only jurisdictions in which the nature of their respective activities or the character of
the properties they own, lease or use makes such qualification or registration necessary as of the
Closing Date and in which the failure so to qualify or to be so registered as of the Closing Date
would have a Material Adverse Effect. Each of the Borrower, the General Partner and Petrolane has
taken all necessary partnership action or corporate action, as the case may be, to authorize the
execution, delivery and performance by it of this Agreement and other Loan Documents to which it is
a party. Each of the Borrower, the General Partner and Petrolane has duly executed and delivered
each of this Agreement and the other Loan Documents to which it is a party, and each of them
constitutes the Borrower’s, the General Partner’s or Petrolane’s, as the case may be, legal, valid
and binding obligation enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium or similar laws affecting
creditors’ rights generally.

6.4 Financial Statements. The audited consolidated financial statements of the
Borrower and its consolidated Subsidiaries for the fiscal year ended September 30, 2004, and the
unaudited balance sheet, statement of operations, statement of cash flows and statement of partners
capital of the Borrower and its consolidated Subsidiaries for the fiscal period ended December 31,
2004, have been prepared in accordance with GAAP applied on a consistent basis throughout the
periods specified (except as described in the footnotes thereto) and present fairly, in all
material respects, the financial position of the Borrower as of the respective dates specified
(except for the absence of footnotes and subject to changes resulting from normal year-end audit
adjustments, in the case of unaudited financial statements).

6.5 Changes, etc. Except as contemplated by this Agreement or the other Loan
Documents, (a) for the period from December 31, 2004 to and including the Closing Date, none of the
Borrower and any of its Restricted Subsidiaries has incurred any material liabilities or
obligations, direct or contingent, nor entered into any material transaction, in each case other
than in the ordinary course of its business, and (b) since the date of the last financial
statements delivered pursuant to Section 6.4 or 7.1 there has not been any material
adverse change in or effect on the financial condition or prospects of the Borrower or in the
Business or Assets. Since June 30, 2003, no Restricted Payment of any kind has been declared, paid
or made by the Borrower other than Restricted Payments permitted by Section 8.5.

6.6 Tax Returns and Payments. Each of the Borrower, the General Partner, Petrolane
and the Restricted Subsidiaries has filed all material tax returns required by law to be filed by
it or has properly filed for extensions of time for the filing thereof, and has paid all material
taxes, assessments and other governmental charges levied upon it or any of its properties, assets,
income or franchises which are shown to be due on such returns, other than those which are not past
due or are presently being contested in good faith by appropriate proceedings diligently conducted
for which such reserves or other appropriate provisions, if any, as shall be required by GAAP have
been made. The Borrower is a limited partnership and so long as it is a limited partnership it
will be treated as a pass-through entity for U.S. federal income tax purposes and as of the Closing
Date is not subject to taxation with respect to its income or gross receipts under applicable state
(other than Michigan, New Hampshire, Tennessee, Washington and Wisconsin) laws.

6.7 Indebtedness. As of the Closing Date, none of the Borrower, the General Partner,
Petrolane, Borrower and its respective Subsidiaries has any secured or unsecured Indebtedness
outstanding, except as set forth in Schedule 6.7 and other than the Indebtedness
represented by this Agreement, the other Loan Documents, the Existing Credit Agreement and the
First Mortgage Notes. As of the Closing Date, no instrument or agreement to which the Borrower or
any of its Subsidiaries is a party or by which the Borrower or any such Subsidiary is bound (other
than this Agreement and the agreements governing the First Mortgage Notes and other than as
indicated in Schedule 6.7) contains any restriction on the incurrence by the Borrower or
any of its Subsidiaries of additional Indebtedness.

6.8 Transfer of Assets and Business. (a) As of the Closing Date, except as set forth
in Schedule 6.8(a), each of the Borrower and its Subsidiaries is in possession of, and
operating in compliance in all material respects with, all franchises, grants, authorizations,
approvals, licenses, permits (other than permits required by Environmental Laws), easements,
rights-of-way, consents, certificates and orders (collectively, the “Permits”) required (i) to own,
lease or use its properties (including without limitation to own, lease or use its Assets) and (ii)
considering all such Permits in the possession of, and complied with by, the General Partner,
Petrolane, the Borrower and its Subsidiaries taken together, to permit the conduct of the Business
as now conducted and proposed to be conducted, except for those Permits (collectively, the “Routine
Permits”) (x) which are routine or administrative in nature and are expected in the reasonable
judgment of the Borrower to be obtained or given in the ordinary course of business after the
Closing Date, or (y) which, if not obtained or given, would not, individually or in the aggregate,
present a reasonable likelihood of having a Material Adverse Effect.

(b) On the Closing Date, each of the Borrower and its Subsidiaries has (i) good and marketable
title to substantially all of the Assets constituting owned real property and (ii) good and
sufficient title to substantially all of the Assets constituting fee-owned personal property for
the use and operation of such personal property as it is used on the date hereof, in each case
subject to no Liens except such as are permitted by Section 8.3. The Assets of the
Borrower and its Subsidiaries on the Closing Date are substantially all of the assets and
properties necessary to enable the Borrower and its Subsidiaries to conduct the Business. Subject
to such exceptions as would not, individually or in the aggregate, present a reasonable likelihood
of having a Material Adverse Effect, (A) on the date hereof the Borrower and its Subsidiaries enjoy
peaceful and undisturbed possession under all leases and subleases necessary in any material
respect for the conduct of the Business, and (B) as of the Closing Date, all such leases and
subleases are valid and subsisting and are in full force and effect. Except to perfect, preserve
and protect Liens permitted by Section 8.3, as of the Closing Date, (x) no presently
effective financing statements under the Uniform Commercial Code which name any of the Borrower,
the General Partner, Petrolane or their respective Subsidiaries as debtor, and which individually
or in the aggregate relate to any material part of the Assets, are on file in any jurisdiction in
which any of the Assets are (or have been) located or the Borrower, the General Partner, Petrolane
or any such Subsidiary is organized or has its principal place of business and (y) none of the
Borrower, the General Partner, Petrolane and any such Subsidiary has signed, or authorized the
filing by or on behalf of any secured party of, any presently effective financing statements which
individually or in the aggregate relate to any material part of the Assets.

(c) As of the date hereof, neither the Borrower nor any of its Subsidiaries own any Railcars
(as defined in the General Security Agreement).

6.9 Litigation, etc. As of the Closing Date, there is no action, proceeding or
investigation pending or, to the knowledge of the Borrower upon reasonable inquiry, threatened
against the Borrower, Petrolane, the Public Partnership, the General Partner or any of their
respective Subsidiaries, and there is no action proceeding or investigation pending or, to the
knowledge of the Borrower upon reasonable inquiry, threatened against the Borrower or its
Restricted Subsidiaries, (a) which questions the validity or enforceability of this Agreement, the
other Loan Documents or any action taken or to be taken pursuant to this Agreement or the other
Loan Documents, or (b) except as set forth in Schedule 6.9, which would present a
reasonable likelihood of having, either in any case or in the aggregate, a Material Adverse Effect.

6.10 Compliance with Other Instruments, etc. (a) On the Closing Date, none of the
Borrower, the General Partner, Petrolane or any of their respective Subsidiaries will be in
violation of (i) any provision of its certificate or articles of incorporation or other
Organization Documents, (ii) any provision of any agreement or instrument to which it is a party or
by which any of its properties is bound or (iii) 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, except (in the case of clauses (ii) and (iii) above
only) for such violations which would not, individually or in the aggregate, present a reasonable
likelihood of having a Material Adverse Effect. Neither the General Partner nor the Public
Partnership is in violation of any provision of the Partnership Agreement.

(b) The execution, delivery and performance by each of the Borrower, the General Partner,
Petrolane and the Restricted Subsidiaries of this Agreement and the other Loan Documents to which
it is a party, and the completion of the transactions contemplated by this Agreement will not (i)
violate (x) any provision of the Partnership Agreement or the certificate or articles of
incorporation or other Organization Documents of the Borrower, the General Partner, Petrolane or
any of their respective Subsidiaries, (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 the Borrower,
the General Partner, Petrolane or any of their respective Subsidiaries 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 the Borrower to create) any Lien not permitted by Section 8.3.

6.11 Governmental Consent. Except as expressly contemplated by this Agreement and the
other Loan Documents, and except for Routine Permits, (i) 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 Agreement or the other Loan Documents to which the Borrower or any
of the Restricted Subsidiaries, Petrolane or the General Partner is a party, and (ii) no such
consent, approval, authorization, declaration or filing is required for the making of Loans
pursuant to this Agreement.

6.12 Investment Company Act. None of the Borrower, Petrolane or the General Partner
is an “investment company”, or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended.

6.13 Public Utility Holding Company Act. None of the Borrower, Petrolane or the
General Partner is a “holding company” within the meaning of Section 2(a)(7)(A) of the Public
Utility Holding Company Act of 1935, as amended (the “PUHCA”). Each of the Borrower, Petrolane and
the General Partner is a “subsidiary company” of a “holding company”, within the meaning of the
PUHCA, but each of UGI (the “holding company”), the Borrower, Petrolane and the General Partner is
exempt from all the provisions of the PUHCA and the rules thereunder other than Section 9(a)(2)
thereof, based upon the filing by UGI with the Commission of an exemption statement on Form U-3A-2
dated February 28, 2005 pursuant to Rule 2 under PUHCA (17 C.F.R. § 250.2).

6.14 Chief Executive Office. As of the Closing Date, the chief executive office of
the Borrower and the office where it maintains its records relating to the transactions
contemplated by this Agreement and the other Loan Documents is located at 460 North Gulph Road,
King of Prussia, PA 19406.

6.15 Matters Relating to Petrolane. (a) As of the Closing Date, Petrolane is a
Wholly-Owned Subsidiary of the General Partner, has no Subsidiaries and owns an approximate 14%
limited partnership interest in the Public Partnership.

(b) Petrolane is a corporation duly organized, validly existing and in good standing under the
laws of the Commonwealth of Pennsylvania and has all requisite corporate power and authority to own
and operate its properties, to conduct its business and to execute and deliver this Agreement and
such other Loan Documents to which Petrolane is a party and to carry out the terms of this
Agreement and such other Loan Documents.

(c) Schedule 6.15 includes a complete description of the business and activities
carried on by Petrolane and of its assets and liabilities as of the Closing Date.

6.16 Matters Relating to the General Partner. (a) As of the Closing Date, the
General Partner is a Wholly Owned Subsidiary of AmeriGas, Inc., a Pennsylvania corporation, and
owns, in addition to the interest in the Borrower described in Section 6.2, (i) a 1%
general partnership interest in the Public Partnership, (ii) all of the outstanding shares of
Capital /Stock of Petrolane and (iii) an approximate 31% limited partnership interest in the Public
Partnership. Other than AmeriGas Technology Group, Inc. and Petrolane, the General Partner has no
other direct Subsidiaries as of the Closing Date.

(b) The General Partner is a corporation duly organized, validly existing and in good standing
under the laws of the Commonwealth of Pennsylvania and has all requisite corporate power and
authority to own and operate its properties, to act as the sole general partner of the Borrower and
to execute and deliver in its individual capacity and in its capacity as the sole general partner
of the Borrower this Agreement and such other Loan Documents to which the General Partner is a
party and to carry out the terms of this Agreement and such other Loan Documents.

6.17 ERISA Compliance. Except to the extent that any of the following would not,
either alone or together, present a reasonable likelihood of having a Material Adverse Effect: (i)
during the twelve-consecutive-month period prior to the date of the execution and delivery of this
Agreement and prior to the date of any Borrowing hereunder, no steps have been taken to terminate
any Pension Plan sponsored or maintained by any Obligor or any ERISA Affiliate of any Obligor, (ii)
no contribution failure has occurred with respect to any Pension Plan sponsored or maintained by
any Obligor or any ERISA Affiliate of any Obligor sufficient to give rise to a Lien under section
302(f) of ERISA and (iii) with respect to each Pension Plan sponsored or maintained by any Obligor
or any ERISA Affiliate of any Obligor, none of the following events has occurred: termination of
the plan, failure to make a required contribution to the plan, failure to satisfy the minimum
funding standard for a year, request for a waiver of the minimum funding standard for any year,
withdrawal from a Multiple Employer Plan, adoption of an amendment which results in a funded
current liability percentage of less than 60%, engaging in one or more prohibited transactions,
failure to comply with reporting and disclosure requirements or engaging in any breach of fiduciary
responsibility.

6.18 Use of Proceeds; Margin Regulations. The proceeds of the Loans are to be used
solely for the purposes set forth in and permitted by Section 8.9. None of the Borrower
and its Subsidiaries is generally engaged in the business of purchasing or selling Margin Stock or
extending credit for the purpose of purchasing or carrying Margin Stock.

6.19 Environmental Warranties. (a) Except as disclosed on Schedule 6.19 or
where non-compliance would not present a reasonable likelihood of having a Material Adverse Effect,
each of the Borrower and its Subsidiaries is in compliance with all Environmental Laws applicable
to it and to the Business or Assets. Except as disclosed on Schedule 6.19 or where a
reasonable likelihood of having a Material Adverse Effect would not be presented, the Borrower and
its Subsidiaries have obtained and are in compliance with all permits, licenses and approvals
required by Environmental Law. Except as disclosed in Schedule 6.19 or where the failure
to timely and properly reapply would not present a reasonable likelihood of having a Material
Adverse Effect, the Borrower and its Subsidiaries have submitted timely and complete applications
to renew any expired or expiring Permits required by Environmental Law. Schedule 6.17
lists all notices from Federal, state or local Governmental Authorities or other Persons received
within the last five years of the date hereof by the Borrower and its Subsidiaries, alleging or
threatening any liability on the part of the Borrower or any of its Subsidiaries, pursuant to any
Environmental Law, that present a reasonable likelihood of having a Material Adverse Effect. All
reports, documents, or other submissions required by Environmental Laws to be submitted by the
Borrower to any Governmental Authority or Person have been filed by the Borrower, except where the
failure to file would not present a reasonable likelihood of having a Material Adverse Effect.

(b) Except as disclosed in Schedule 6.19 or where a reasonable likelihood of having a
Material Adverse Effect would not be presented: (i) there is no Hazardous Substance present at any
of the real property currently owned or leased by the Borrower or any of its Subsidiaries, and to
the knowledge of the Borrower, there was no Hazardous Substance present at any of the real property
formerly owned or leased by the Borrower or any of its Subsidiaries during the period of ownership
or leasing by such Person; and (ii) with respect to such real property and subject to the same
knowledge and temporal qualifiers concerning Hazardous Substances with respect to formerly owned or
leased real properties, there has not occurred (x) any release, or to the knowledge of the
Borrower, any threatened release of a Hazardous Substance, or (y) any discharge or, to the
knowledge of the Borrower, threatened discharge of any Hazardous Substance into the ground,
surface, or navigable waters which violates any Federal, state, local or foreign laws, rules or
regulations concerning water pollution.

(c) Except as set forth in Schedule 6.19 or where a reasonable likelihood of having a
Material Adverse Effect would not be presented, none of the Borrower and its Subsidiaries has
disposed of, transported, or arranged for the transportation or disposal of any Hazardous Substance
where such disposal, transportation, or arrangement would give rise to liability pursuant to CERCLA
or any analogous state statute.

(d) Except as set forth in Schedule 6.19 or where a reasonable likelihood of having a
Material Adverse Effect would not be presented: (1) no lien has been asserted by any Governmental
Authority or person resulting from the use, spill, discharge, removal, or remediation of any
Hazardous Substance with respect to any real property currently owned or leased by the Borrower or
any of its Subsidiaries, and (2) to the knowledge of the Borrower, no such lien was asserted with
respect to any of the real property formerly owned or leased by the Borrower or any its
Subsidiaries during the period of ownership or leasing of the real property by such Person.

(e) Except as set forth in Schedule 6.19 or where a reasonable likelihood of having a
Material Adverse Effect would not be presented, (1) there are no underground storage tanks,
asbestos-containing materials, polychlorinated biphenyls, or urea formaldehyde insulation at any of
the real property currently owned or leased by the Borrower or any of its Subsidiaries in violation
of Environmental Law and (2) to the knowledge of the Borrower, there were no underground storage
tanks, asbestos-containing materials, polychlorinated biphenyls, or urea formaldehyde insulation at
any of the real property formerly owned or leased by the Borrower or any of its Subsidiaries in
violation of Environmental Law during the period of ownership or leasing of such real property by
such Person.

(f) Except as set forth in Schedule 6.19 or where a reasonable likelihood of having a
Material Adverse Effect would not be presented, propane has been used, handled and stored by the
Borrower and its Subsidiaries during the five year period ending on the Closing Date in compliance
with Environmental Laws.

6.20 Copyrights, Patents, Trademarks and Licenses, etc. Except to the extent that the
failure to do so would not present a reasonable likelihood of having a Material Adverse Effect, the
Borrower and the Restricted Subsidiaries own or are licensed or otherwise have the right to use all
of the patents, trademarks, service marks, trade names, copyrights, contractual franchises,
authorizations and other rights that are reasonably necessary for the operation of the Business,
without conflict with the rights of any other Person. To the best knowledge of the Borrower, no
slogan or other advertising device, product, process, method, substance, part or other material now
employed, or now contemplated to be employed, by the Borrower or any Restricted Subsidiary
infringes upon any rights held by any other Person, where such infringement would present a
reasonable likelihood of having a Material Adverse Effect. Except as specifically disclosed in
Schedule 6.20, no claim or litigation regarding any of the foregoing is pending or to the
knowledge of the Borrower threatened, and no patent, invention, device, application, principle or
any statute, law, rule, regulation, standard or code is pending or, to the knowledge of the
Borrower, proposed, which, in either case, would present a reasonable likelihood of having a
Material Adverse Effect.

6.21 Insurance. The Borrower and each of its Subsidiaries are in compliance with the
terms and conditions contained in Sections 20 and 21 of the Collateral Agency Agreement.

6.22 Full Disclosure. None of the representations or warranties made by any Obligor
or the Restricted Subsidiaries in the Loan Documents as of the date such representations and
warranties are made or deemed made, and none of the statements contained in any document,
certificate or instrument furnished by or on behalf of any Obligor in connection with the Loan
Documents, as of the date of such document, instrument or certificate, contains any untrue
statement of a material fact or omits any material fact required to be stated therein or necessary
to make the statements made therein, in light of the circumstances under which they are made, not
misleading.

6.23 Solvency. As of the Closing Date, none of the Obligors or any of the Restricted
Subsidiaries:

(i) was insolvent;

(ii) was engaged in business, or was about to engage in business or a transaction, for which
any property remaining with such Obligor or Restricted Subsidiary was an unreasonably small
capital; or

(iii) intended to incur, or believed that it would incur, debts that would be beyond its
ability to pay as such debts matured.

6.24 Title Insurance. As of the Closing Date, the Borrower has obtained and delivered
to the Collateral Agent (or its predecessor) an ALTA loan policy (10-17-92 form), or its
equivalent, of title insurance for all real property owned by it which has an individual value in
excess of $1,000,000 (as determined in good faith by the General Partner) or which is, as of the
date hereof, insured by a lender’s title insurance policy showing the Lien of the applicable
Mortgage as a first priority mortgage Lien, subject only to Permitted Encumbrances.

6.25 Mortgages. (a) From and after April 19, 1995, other than with respect to those
certain Mortgages disclosed to Wachovia in writing and approved by Wachovia, the Borrower and its
Restricted Subsidiaries (other than AEPLP and its Subsidiaries), as applicable, have executed,
delivered and recorded a Mortgage covering each district location owned or acquired by it and any
other real property thereafter acquired by it which had an individual value in excess of $100,000
or which had an aggregate value in excess of $500,000 (in each case as determined in good faith by
the General Partner).

(b) As of the Closing Date, except as set forth in clause (a) of this Section 6.25
each Mortgage required to be delivered pursuant to Section 6.25(a) (i) is in full force and
effect and (ii) creates a valid first mortgage lien upon the applicable Mortgaged Property or
Mortgaged Properties, as applicable, subject only to Permitted Encumbrances (as defined in the
applicable Mortgages).

6.26 Security Interest; Parity Debt. (a) The Borrower has caused to be duly recorded,
published, registered and filed all the documents set forth in paragraph (b) of the
definition of Security Documents (or documents or instruments in respect thereof), in such manner
and in such places as was required by law to establish, and if applicable, perfect and preserve the
rights and security interests of the parties thereto and their respective successors and assigns in
the General Collateral.

(b) Pursuant to the General Security Agreement, the Collateral Agent has a first priority
perfected security interest in the Collateral (as defined in the General Security Agreement)
subject only to Permitted Filings (as defined in the General Security Agreement) and other liens
permitted by Section 8.3 of this Agreement, and the Collateral Agent is entitled to all the
rights, priorities and benefits afforded by the Uniform Commercial Code or other relevant law as
enacted in the relevant jurisdiction to perfected security interests.

(c) Pursuant to the Subsidiary Security Agreement, the Collateral Agent has a first priority
perfected security interest in the Collateral (as defined in the Subsidiary Security Agreement)
subject only to Permitted Filings (as defined in the Subsidiary Security Agreement) and other liens
permitted by Section 8.3 of this Agreement, and the Collateral Agent is entitled to all the
rights, priorities and benefits afforded by the Uniform Commercial Code or other relevant law as
enacted in the relevant jurisdiction to perfected security interests.

(d) This Agreement constitutes a Parity Debt Agreement for purposes of, and within the meaning
of, the Collateral Agency Agreement and the Security Documents. The Agent constitutes a Parity
Agent for purposes of, and within the meaning of, the Collateral Agency Agreement and the Security
Documents. Each Bank that is a party to this Agreement constitutes a Parity Lender for purposes
of, and within the meaning of, the Collateral Agency Agreement and the Security Documents.

6.27 PPD/GP Debt Contributions. The aggregate amount of PPD/GP Debt Contributions
made by the Public Partnership and the General Partner to the Borrower during the period from
August 21, 2001 to the Closing Date is in excess of $105,000,000.

6.28 State Mortgage Taxes (a) All state documentary stamp taxes, recording fees and
nonrecurring intangible taxes, if any, due and payable in connection with the Secured Obligations
prior to the Closing Date were paid upon recording of each Mortgage; (b) all state documentary
stamp taxes, recording fees and nonrecurring intangible taxes, if any, due and payable in
connection with amendments to the Mortgages and Mortgage Assignments have been or will be paid upon
recording of the same and (c) no document (including, without limitation, this Agreement)
evidencing, creating, extending, renewing or modifying any of the Secured Obligations has been
executed by any person or entity (excluding the payees or other beneficiaries thereof) other than
those persons and entities who were obligated to pay the Secured Obligations at the time that the
Mortgages were originally recorded. As used in this Section 6.28, the term “Secured
Obligations” means “Obligations” as defined in the Mortgages.

6.29 Tax Disclosure6.30 . Neither the Agent, the Banks nor the Borrower intend to
treat the Loans as being a “reportable transaction” (within the meaning of Treasury Regulation
Section 1.6011-4).

ARTICLE VII

AFFIRMATIVE COVENANTS

So long as any Loan or other Obligation shall remain unpaid or unsatisfied, unless the
Required Banks waive compliance in writing:

7.1 Financial Statements. The Borrower will maintain, and will cause each of its
Subsidiaries to maintain, a system of accounting established and administered in accordance with
GAAP, and will accrue, and will cause each of its Subsidiaries to accrue, all such liabilities as
shall be required by GAAP. The Borrower will furnish or cause to be furnished to the Agent, on
behalf of Banks, and the Agent will promptly distribute to each Bank at their respective addresses
as set forth on Schedule 12.2 hereto, or such other office as may be designated by the
Agent and Banks from time to time:

(a) as soon as practicable, but in any event within 45 days after the end of each of the first
three quarterly fiscal periods in each fiscal year of the Borrower, consolidated and consolidating
balance sheets of the Borrower and its Subsidiaries (except, as to consolidating balance sheets
only, for inactive Subsidiaries) as at the end of such period and the related consolidated (and, as
to statements of income, consolidating, except for inactive Subsidiaries) statements of income,
partners’ capital and cash flows of the Borrower and its Subsidiaries for such period and (in the
case of the second and third quarterly periods) for the period from the beginning of the current
fiscal year to the end of such quarterly period, setting forth in each case in comparative form the
consolidated and, where applicable, consolidating figures for the corresponding periods of the
previous fiscal year, all in reasonable detail and certified by the principal financial officer of
the General Partner as presenting fairly, in all material respects, the information contained
therein (except for the absence of footnotes and subject to changes resulting from normal year-end
adjustments), in accordance with GAAP applied on a basis consistent with prior fiscal periods
except for inconsistencies resulting from changes in accounting principles and methods agreed to by
the Borrower’s independent accountants;

(b) as soon as practicable, but in any event within 90 days after the end of each fiscal year
of the Borrower, consolidated and consolidating balance sheets of the Borrower and its Subsidiaries
(except, as to consolidating balance sheets only, for inactive Subsidiaries) as at the end of such
year and the related consolidated (and, as to statements of income, consolidating except for
inactive Subsidiaries) statements of income, partners’ capital and cash flows of the Borrower and
its Subsidiaries for such fiscal year, setting forth in each case in comparative form the
consolidated and, where applicable, consolidating figures for the previous fiscal year, all in
reasonable detail and (i) in the case of such consolidated financial statements, accompanied by a
report thereon of PricewaterhouseCoopers LLP or other independent public accountants of recognized
national standing selected by the Borrower, which report shall not be qualified with respect to
scope limitations imposed by the Borrower or any of its Restricted Subsidiaries or with respect to
accounting principles followed by the Borrower or any of its Restricted Subsidiaries not in
accordance with GAAP and shall state that such consolidated financial statements present fairly, in
all material respects, the financial position of the Borrower and its Subsidiaries as at the dates
indicated and the results of their operations and cash flows for the periods indicated in
conformity with GAAP unless otherwise disclosed, applied on a basis consistent with prior years,
and that the audit by such accountants in connection with such consolidated financial statements
has been made in accordance with generally accepted auditing standards then in effect in the United
States, and (ii) in the case of such consolidated and consolidating financial statements, certified
by the principal financial officer of the General Partner as presenting fairly, in all material
respects, the information contained therein (except, in the case of such consolidating financial
statements, for the absence of footnotes), in accordance with GAAP (the items in subsections
(a) and (b) of this Section 7.1, the “Borrower Financials”);

(c) together with each delivery of financial statements of the Borrower pursuant to
subsections (a) and (b) of this Section 7.1, a Compliance Certificate of
the Borrower (i) stating that the signers have reviewed the terms of this Agreement and the other
Loan Documents and have made, or caused to be made under their supervision, a review in reasonable
detail of the transactions and condition of the Borrower and its Subsidiaries during the accounting
period covered by such financial statements, and that the signers do not have knowledge of the
existence and continuance as at the date of such Compliance Certificate of any Default or Event of
Default, or, if any of the signers have knowledge that any Default or Event of Default then exists,
specifying the nature and approximate period of existence thereof and what action the Borrower has
taken or is taking or proposes to take with respect thereto, (ii) specifying the amount available
at the end of such accounting period for Restricted Payments in compliance with Section 8.5
and showing in reasonable detail all calculations required in arriving at such amount, (iii)
demonstrating in reasonable detail compliance at the end of such accounting period with the
restrictions contained in Section 8.1 (the last two paragraphs), Sections 8.1(b),
(d), (e), (f), (k) and (l), Section 8.2,
Section 8.4(c), Section 8.4(h), Section 8.5, Section 8.8(a)(ii),
Section 8.8(a)(iii), Section 8.8(c)(ii) (calculation of Excess Sale Proceeds),
Section 8.13, Section 8.14 (first sentence), Section 8.15 and Sections
8.17(a), (b) and (d), (iv) calculating the applicable Pricing Tier, (v) if not
specified in the related financial statements being delivered pursuant to subsections (a)
and (b) above, specifying the aggregate amount of interest paid or accrued by, and
aggregate rental expenses of, the Borrower and its Subsidiaries, and the aggregate amount of
depreciation, depletion and amortization charged on the books of the Borrower and its Subsidiaries,
during the fiscal period covered by such financial statements, and (vi) if at the time of the
delivery of such financial statements the Borrower shall have any Unrestricted Subsidiaries,
setting forth therein (or in an accompanying schedule) the adjustments required to be made to
indicate the consolidated financial position, cash flows and results of operations of the Borrower
and the Restricted Subsidiaries without regard to the financial position, cash flows or results of
operations of such Unrestricted Subsidiaries;

(d) together with each delivery of consolidated financial statements of the Borrower pursuant
to subsection (b) of this Section 7.1, a written statement by the independent
public accountants giving the report thereon stating that they have reviewed the terms of this
Agreement and the Notes and that, in making the audit necessary for the certification of such
financial statements, they have obtained no knowledge of the existence and continuance as at the
date of such written statement of any Default or Event of Default, or, if they have obtained
knowledge that any Default or Event of Default then exists, specifying, to the extent possible, the
nature and approximate period of the existence thereof (such accountants, however, shall not be
liable to anyone by reason of their failure to obtain knowledge of any Default or Event of Default
which would not be disclosed in the course of an audit conducted in accordance with generally
accepted auditing standards then in effect in the United States);

(e) promptly following the receipt and timely review thereof by the Borrower, copies of all
reports submitted to the Borrower by independent public accountants in connection with each
special, annual or interim audit of the books of the Borrower or any Subsidiary thereof made by
such accountants, including without limitation the comment letter submitted by each such accountant
to management in connection with their annual audit;

(f) promptly upon their becoming publicly available, copies of (i) all financial statements,
reports, notices and proxy statements sent or made available by the Borrower or the Public
Partnership to any of its security holders in compliance with the Exchange Act, or any comparable
Federal or state laws relating to the disclosure by any Person of information to its security
holders, (ii) all regular and periodic reports and all registration statements and prospectuses
filed by the Borrower or the Public Partnership with any securities exchange or with the Securities
and Exchange Commission or any governmental authority succeeding to any of its functions (other
than registration statements on Form S-8 and Annual Reports on Form 10-R), (iii) all press releases
and other similar written statements made available by the Borrower or the Public Partnership to
the public concerning material developments in the business of the Borrower or the Public
Partnership, as the case may be and (iv) all reports, notices and other similar written statements
sent or made available by the Borrower or the Public Partnership to any holder of its Indebtedness
pursuant to the terms of any agreement, indenture or other instrument evidencing such Indebtedness,
including without limitation the First Mortgage Notes and the Public Partnership Indenture, except
to the extent the same substantive information is already being sent to the Agent;

(g) as soon as reasonably practicable, and in any event within five Business Days after a
Responsible Officer obtains knowledge that any Default or Event of Default has occurred, a written
statement of such Responsible Officer setting forth details of such Default or Event of Default and
the action which the Borrower has taken, is taking and proposes to take with respect thereto;

(h) as soon as reasonably practicable, and in any event within five Business Days after a
Responsible Officer obtains knowledge of (i) the occurrence of an adverse development with respect
to any litigation or proceeding involving the Borrower or any of its Subsidiaries which in the
reasonable judgment of the Borrower presents a reasonable likelihood of having a Material Adverse
Effect or (ii) the commencement of any litigation or proceeding involving the Borrower or any of
its Subsidiaries which in the reasonable judgment of the Borrower presents a reasonable likelihood
of having a Material Adverse Effect, a written notice of such Responsible Officer describing in
reasonable detail such commencement of, or adverse development with respect to, such litigation or
proceeding;

(i) as soon as reasonably practicable, and in any event within five Business Days after a
responsible officer of any Obligor becomes aware of the occurrence or existence of any of the
events or conditions specified below, and such event or condition has resulted in, or in the
opinion of the principal financial officer of the General Partner might reasonably be expected to
result in, a Material Adverse Effect: (i) the institution of any steps by any Obligor or any other
Person to terminate any Pension Plan sponsored or maintained by an Obligor or any ERISA Affiliate
of any Obligor, (ii) the failure to make a required contribution to any Pension Plan sponsored or
maintained by any Obligor if such failure is sufficient to give rise to a Lien under section 302(f)
of ERISA, or (iii) if any of the subsequently listed events have occurred with respect to any
Pension Plan sponsored or maintained by any Obligor, or any ERISA Affiliate of any Obligor, the
occurrence of termination of the plan, failure to make a required contribution to the plan, failure
to satisfy the minimum funding standard for a year, request for a waiver of the minimum funding
standard for any year, withdrawal from a Multiple Employer Plan, adoption of an amendment which
results in a funded current liability percentage of less than 60%, engaging in one or more
prohibited transactions, failure to comply with reporting and disclosure requirements or engaging
in any breach of fiduciary responsibility, notice thereof and copies of all documentation relating
thereto;

(j) within 15 days after being approved by the governing body of the Borrower, and in any
event no later than November 15th each fiscal year, an annual operating forecast for the next
fiscal year;

(k) as soon as reasonably practicable, and in any event within five Business Days after a
Responsible Officer obtains knowledge of a violation or alleged violation of Environmental Law or
the presence or release of any Hazardous Substance within, on, from, relating to or affecting any
property, which in the reasonable judgment of the Borrower presents a reasonable likelihood of
having a Material Adverse Effect, provide notice thereof, and upon request, copies of relevant
documentation, provided, however, no such notice is required with respect to
matters disclosed in Schedule 6.19 or matters with respect to which notice has previously
been provided pursuant to this Section 7.1(l);

(l) with reasonable promptness (and in no event later than thirty (30) days after request),
the Borrower shall provide to the Agent upon request by the Agent which request shall not be made
more frequently than once every six (6) months or prior to March 31, 2004, a true and correct
schedule of each parcel of real property owned in fee by the Borrower or its Restricted
Subsidiaries (other than AEPLP and its Subsidiaries), as of the end of the most recent calendar
quarter, which schedule shall set forth the address (or approximate address if no address is
available), county, record owner and approximate value (as determined in good faith by the General
Partner) of each such parcel of real property;

(m) within 30 days of the acquisition by the Borrower or its Restricted Subsidiary (other than
AEPLP or its Subsidiaries) of any parcel of real property for which the Borrower or such Restricted
Subsidiary, as the case may be, does not execute and deliver a Mortgage pursuant to Section
7.10, the Borrower shall provide to the Agent evidence that (i) the individual value of such
acquired parcel of real property is not in excess of $100,000 (as determined in good faith by the
General Partner) or (ii) the aggregate value of such acquired parcel of real property and the other
real properties owned by the Borrower or its Restricted Subsidiary (other than AEPLP or its
Subsidiaries) and located within the same district is not in excess of $500,000 (as determined in
good faith by the General Partner); and

(n) with reasonable promptness, such other information and data (financial or other) with
respect to the Obligors or any of their Subsidiaries as from time to time may be reasonably
requested by the Agent or any Bank.

7.2 Reserved.

7.3 Adequate Reserves. The Borrower will, and will cause each of its Restricted
Subsidiaries to maintain, overall reserves on their respective books and records in accordance with
GAAP, which overall reserves shall be adequate in the opinion of the management of the Borrower and
each Restricted Subsidiary for the purposes for which they were established.

7.4 Partnership or Corporate Existence; Business; Compliance with Laws. (a) Except
as otherwise expressly permitted in accordance with Section 8.7 or 8.8, (i) the
Borrower will at all times preserve and keep in full force and effect its partnership existence and
its status as a partnership not taxable as a corporation, (ii) the Borrower will cause each of the
Restricted Subsidiaries to keep in full force and effect its partnership or corporate existence and
(iii) the Borrower will, and will cause each Restricted Subsidiary to, at all times preserve and
keep in full force and effect all of its material rights and franchises; provided,
however, that the partnership or corporate existence of any Restricted Subsidiary, and any
right or franchise of the Borrower or any Restricted Subsidiary, may be terminated notwithstanding
this Section 7.4 if, in the good faith judgment of the Borrower, such termination (x) is in
the best interest of the Borrower and the Restricted Subsidiaries, (y) is not disadvantageous to
the Agent or the Banks in any material respect and (z) would not have a reasonable likelihood of
having a Material Adverse Effect.

(b) The Borrower will, and will cause each of its Subsidiaries to, at all times comply with
all laws, regulations and statutes (including without limitation any zoning or building ordinances)
applicable to it, except for failures to so comply which, individually or in the aggregate, would
not present a reasonable likelihood of having a Material Adverse Effect.

(c) The Borrower will not, and will not permit any Restricted Subsidiary to, engage in any
lines of business other than its current Business as defined in this Agreement and other activities
incidental or related to the Business.

7.5 Payment of Taxes and Claims. The Borrower will, and will cause each of its
Subsidiaries to, pay all material Taxes, Other Taxes, assessments and other governmental charges
imposed upon it or any of its Subsidiaries, or any of its or its Subsidiaries’ properties or assets
or in respect of any of its or any of its Subsidiaries’ franchises, business, income or profits
when the same becomes due and payable, and all claims (including without limitation claims for
labor, services, materials and supplies) for sums which have become due and payable and which by
law have or might become a Lien upon any of its or any of its Subsidiaries’ properties or assets,
and promptly reimburse the Banks for any such Taxes, Other Taxes, assessments, charges or claims
paid by them; provided, that no such Tax, Other Tax, assessment, charge or claim need be
paid or reimbursed if it is being contested in good faith by appropriate proceedings promptly
initiated and diligently conducted and if such reserves or other appropriate provision, if any, as
shall be required by GAAP shall have been made therefor and be adequate in the good faith judgment
of the General Partner.

7.6 Maintenance of Properties: Insurance. (a) The Borrower will maintain or cause to
be maintained in good repair, working order and condition all properties used or useful in the
business of the Borrower and the Restricted Subsidiaries and from time to time will make or cause
to be made all appropriate repairs, renewals and replacements thereof.

(b) The Borrower will maintain or cause to be maintained, with Permitted Insurers to the
extent available on commercially reasonable terms from Permitted Insurers and otherwise with
financially sound and reputable insurers, insurance with respect to its properties and business and
the properties and business of the Restricted Subsidiaries of the types and in the amounts
specified in Sections 20 and 21 of the Collateral Agency Agreement and the Collateral Agent shall
be named as an additional insured party on each insurance policy maintained pursuant to this
Section 7.6(b).

7.7 License Agreements. The Borrower will perform and comply with all of its
obligations under each of the License Agreements to which it is a party, will enforce each such
License Agreement against each other party thereto and will not accept the termination of any such
License Agreement or any amendment or supplement thereof or modification or waiver thereunder,
unless any such failure to perform, comply or enforce or any such acceptance would not,
individually or in the aggregate, present a reasonable likelihood of having a Material Adverse
Effect.

7.8 Chief Executive Office. The Borrower will not move its chief executive office and
the office at which it maintains its records relating to the transactions contemplated by this
Agreement and the Loan Documents unless not less than 45 days’ prior written notice of its
intention to do so clearly describing the new location, shall have been given to the Collateral
Agent and each Bank.

7.9 Guarantors. Promptly upon any Person becoming a Restricted Subsidiary of the
Borrower, the Borrower will cause such Restricted Subsidiary to execute and deliver to the
Collateral Agent such appropriate documents to become (i) a guarantor under the Subsidiary
Guarantee and an assignor under the Subsidiary Security Agreement and (ii) bound by the terms and
provisions of the Collateral Agency Agreement. If any Restricted Subsidiary then or thereafter
shall have any interests in real property, the Borrower will, subject to and if required by the
provisions of Section 7.10, cause such Restricted Subsidiary to execute and deliver to the
Collateral Agent a Mortgage, with such changes, mutatis mutandis, so as to make
such instrument applicable to such Restricted Subsidiary and its interests in real property, and
cause the same to be recorded, published, registered and filed as provided in Section 7.10.
Notwithstanding the foregoing, until the AEPLP Available Date, the Borrower shall not be required
to cause AEPLP or any of AEPLP’s Subsidiaries, and neither AEPLP nor any of its Subsidiaries shall
be required to comply with this Section 7.9.

7.10 New Mortgages; Recordation. The Borrower and its Restricted Subsidiaries, if
applicable, will execute and deliver a Mortgage (with such changes, mutatis
mutandis, so as to make such instrument applicable to the Borrower or such Restricted
Subsidiary, as the case may be, and its interests in real property) covering each district location
hereafter acquired by it and any other real property hereafter acquired by it which has an
individual value in excess of $100,000 or which has an aggregate value in excess of $500,000 (in
each case as determined in good faith by the General Partner) and which is not already subject to
the Lien of a Mortgage. The Borrower will cause to be duly recorded, published, registered and
filed all the documents set forth in paragraph (b) of the definition of Security Documents
(or documents or instruments in respect thereof), in such manner and in such places as is required
by law to establish, and if applicable, perfect and preserve the rights and security interests of
the parties thereto and their respective successors and assigns in the General Collateral. The
Borrower will obtain and deliver to the Collateral Agent an ALTA loan policy (10-17-92 form), or
its equivalent in any state, of title insurance for real property hereafter acquired by it which
has an individual value in excess of $1,000,000 (as determined in good faith by the General
Partner) showing the Lien of a Mortgage as a first priority mortgage Lien. The Borrower will pay
or cause to be paid all taxes, fees and other governmental charges in connection with the
execution, delivery, recording, publishing, registration and filing of such documents or
instruments in such places, together with all expenses and premiums of the title companies in
connection with the issuance of any title policies or endorsements thereto. Notwithstanding the
foregoing, until the AEPLP Available Date, the Borrower shall not be required to cause AEPLP or any
of AEPLP’s Subsidiaries, and neither AEPLP nor any of its Subsidiaries shall be required to comply
with this Section 7.10.

7.11 Further Assurances. At any time and from time to time promptly, the Borrower
shall, at its expense, execute and deliver to the Agent and each Bank and to the Collateral Agent
such further instruments and documents, and take such further action, as the Agent or any Bank may
from time to time reasonably request, in order to further carry out the intent and purpose of this
Agreement and the other Loan Documents and to establish, perfect, preserve and protect the rights,
interests and remedies created, or intended to be created, in favor of the Banks and the Collateral
Agent hereunder and thereunder, including without limitation the execution, delivery, recordation
and filing of financing statements and continuation statements under the Uniform Commercial Code of
any applicable jurisdiction, and the delivery of satisfactory opinions of counsel as to the
recording, registration or filing of the Security Documents (or documents in respect thereof) and
the legal, valid, binding and enforceable nature thereof and the validity of the Liens created
thereby on the General Collateral. Until the AEPLP Available Date, nothing in this Section
7.11 shall require the Borrower, AEPLP or AmeriGas Eagle Parts & Service to provide to the
Collateral Agent a first priority Lien in the assets of AEPLP or AmeriGas Eagle Parts & Service.

7.12 Covenant to Secure Notes Equally. The Borrower covenants that, if it or any
Restricted Subsidiary shall create or assume any Lien upon any of its property or assets, whether
now owned or hereafter acquired, other than Liens permitted by the provisions of Section
8.3 (unless prior written consent to the creation or assumption thereof shall have been
obtained pursuant to Section 12.1) it will make or cause to be made effective a provision
whereby the Loans will be secured by such Lien equally and ratably with any and all other
Indebtedness thereby secured so long as any such other Indebtedness shall be so secured, it being
understood that the provision of such equal and ratable security shall not constitute a cure or
waiver of any related Event of Default.

7.13 Designations With Respect to Subsidiaries. (a) The Borrower may designate any
Restricted Subsidiary or newly acquired or formed Subsidiary as an Unrestricted Subsidiary or any
Unrestricted Subsidiary as a Restricted Subsidiary, in each case subject to satisfaction of the
following conditions:

(i) immediately before and after giving effect to such designation, no Default or Event of
Default shall exist and be continuing; and

(ii) after giving effect to such designation, the Borrower would be permitted to incur at
least $1 of additional Indebtedness in accordance with the provisions of clauses (i) and (ii) of
Section 8.1(f);

(iii) in the case of a designation of a Restricted Subsidiary or a newly acquired or formed
Subsidiary as an Unrestricted Subsidiary, the conditions set forth in subsection (ii)(A) of
Section 8.8(c) (the “Sale Condition”) and Section 8.4(h) (the “Investment
Condition”) would be satisfied, assuming for this purpose that such designation (and all prior
designations of Restricted Subsidiaries or newly acquired or formed Subsidiaries as Unrestricted
Subsidiaries during the current fiscal year) constitutes a sale by the Borrower of (in the case of
the Sale Condition), and an Investment by the Borrower in an amount equal to (in the case of the
Investment Condition), all the assets of the Subsidiary so designated, in each case for an amount
equal to (x) the net book value of such assets in the case of a Restricted Subsidiary and (y) the
cost of acquisition or formation in the case of a newly acquired or formed Subsidiary (such amounts
being herein referred to as “Designation Amounts” and deemed to constitute Net Proceeds for the
purposes of the Sale Condition); provided, however, that notwithstanding anything
to the contrary contained herein, until the AEPLP Security Date, AEPLP and each of its Subsidiaries
shall at all times remain Restricted Subsidiaries and in no event shall the Borrower have any right
to redesignate AEPLP or any of its Subsidiaries as an Unrestricted Subsidiary.

(b) A Subsidiary that has twice previously been designated an Unrestricted Subsidiary may not
thereafter be designated as a Restricted Subsidiary.

(c) The Borrower shall deliver to the Agent and each Bank, within 20 Business Days after any
such designation, an Officer’s Certificate stating the effective date of such designation and
stating that the foregoing conditions contained in this Section 7.13 have been satisfied.
Such certificate shall be accompanied by a schedule setting forth in reasonable detail the
calculations demonstrating compliance with such conditions, where appropriate.

(d) All Investments, Indebtedness, Liens, Guaranty Obligations and other obligations that an
Unrestricted Subsidiary (the “Designee”) has at the time of being designated a Restricted
Subsidiary hereunder shall be deemed to have been acquired, made or incurred, as the case may be,
at the time of such designation and in anticipation of such Designee becoming a Subsidiary and of
acquiring its assets (except as otherwise specifically provided in Section 8.1(i) or
(j) or Section 8.3(m)).

7.14 Covenants of the General Partner and Petrolane. (a) Petrolane covenants that it
will engage only in the business and activities described in Schedule 6.16, and each of the
General Partner and Petrolane covenants that it will not create any Liens on the general
partnership interests in the Borrower or the Public Partnership or dispose of any assets or
properties covered by the terms of any License Agreement and will maintain and keep in effect its
corporate existence and franchises.

(b) Each of the General Partner and Petrolane will deliver to the Agent, on behalf of the
Banks, and the Agent will promptly distribute to each Bank at their respective addresses as set
forth on Schedule 12.2 hereto, or such other office as may be designated by the Agent and
Banks from time to time, (i) financial statements as to itself of the same character described in,
and at the times specified in, Sections 7.1(a) and 7.1(b) with respect to the
Borrower (the “Guarantor Financials”), in each case certified and reported on in the same manner as
the Borrower Financials (except that the financial statements of Petrolane need not be audited),
and (ii) with reasonable promptness, such other information and data (financial or other) with
respect to the General Partner or Petrolane, as the case may be, as may from time to time be
reasonably requested by the Agent.

(c) The General Partner will perform and comply with all of its obligations under the
Partnership Agreement and each of the License Agreements to which it is a party, will enforce the
Partnership Agreement and each such License Agreement against each other party thereto and will not
accept the termination of the Partnership Agreement or any such License Agreement or any amendment
or supplement thereof or modification or waiver thereunder, unless any such failure to perform,
comply or enforce or any such acceptance would not, individually or in the aggregate, present a
reasonable likelihood of having a Material Adverse Effect.

(d) Section 6.5 of the Partnership Agreement (the “Incorporated Covenant”) as in effect on the
date hereof, together with all related definitions, is hereby incorporated herein in the form
included in the Partnership Agreement on April 19, 1995 and without regard to any subsequent
amendments or waivers of the provisions of, or any termination of, the Partnership Agreement. The
General Partner agrees to fully perform and comply with the Incorporated Covenant.

(e) The General Partner agrees to apply all distributions received by the Public Partnership
from the Borrower and made with the proceeds of Indebtedness incurred pursuant to Section
8.1(l) only to make payments, purchases, prepayments, redemptions, defeasances or other
repayments (scheduled or unscheduled) of Indebtedness of the Public Partnership (and to pay all
fees, premiums, make whole amounts and transaction expenses incurred in connection therewith).

7.15 Books and Records. The Borrower will, and will cause each of its Restricted
Subsidiaries to, keep books and records which accurately reflect all of its business affairs and
transactions and permit the Agent and each Bank or any of their respective representatives, at
reasonable times and intervals, to visit all of its offices, to discuss its financial matters with
its officers and to examine (and, at the expense of the Borrower, photocopy extracts from) any of
its books or other Borrower records. Upon the occurrence and during the continuance of any Default
or Event of Default the Borrower hereby authorizes its independent public accountant to discuss the
Borrower’s financial matters with the Agent and each Bank or any of their respective
representatives provided that a representative of the Borrower is present. So long as a Default
has occurred and is continuing, the Borrower shall pay any fees of the Agent, each Bank and such
independent public accountant incurred in connection with the Agent’s or any Bank’s exercise of its
rights pursuant to this Section.

7.16 Environmental Covenant. The Borrower will, and will cause each of the Restricted
Subsidiaries to:

(a) comply with all applicable Environmental Laws and any permit, license, or approval
required under any Environmental Law, except for failures to so comply which would not present a
reasonable likelihood of having a Material Adverse Effect;

(b) store, use, release, or dispose of any Hazardous Substance in compliance with
Environmental Laws at any property owned or leased by the Borrower or any of its Restricted
Subsidiaries, except where such non-compliance would not present a reasonable likelihood of having
a Material Adverse Effect;

(c) avoid committing any act or omission which would cause any Lien to be asserted against any
property owned by the Borrower or any of its Restricted Subsidiaries pursuant to any Environmental
Law, except where such Lien would not present a reasonable likelihood of having a Material Adverse
Effect;

(d) use, handle or store propane in compliance with Environmental Laws, except where such
non-compliance would not present a reasonable likelihood of having a Material Adverse Effect;

(e) take all steps required by Environmental Law to cure any violation thereof disclosed in
Schedule 6.19; and

(f) provide such information and certificates which the Agent or any Bank may reasonably
request from time to time to evidence compliance with this Section 7.16.

7.17 Tax Disclosure. In the event that the Agent, any of the Banks or the Borrower
determine to take any action inconsistent with its intention not to treat the Loans as being a
“reportable transaction” (within the meaning of the Treasury Regulation Section 1.6011-4), shall
promptly notify the other parties to this Agreement thereof in writing.

ARTICLE VIII

NEGATIVE COVENANTS

So long as any Loan or other Obligation shall remain unpaid or unsatisfied, unless the
Required Banks waive compliance in writing:

8.1 Indebtedness. The Borrower will not, and will not permit any Restricted
Subsidiary to, create, incur, assume or otherwise become or remain directly or indirectly liable
with respect to, any Indebtedness, except that:

(a) the Borrower may become and remain liable with respect to the Indebtedness under this
Agreement, the Existing Credit Agreement, Indebtedness evidenced by the First Mortgage Notes and
Long Term Funded Debt incurred in connection with any extension, renewal, refunding or refinancing
of Indebtedness under this Agreement, the Existing Credit Agreement or Indebtedness evidenced by
the First Mortgage Notes , provided, that the principal amount of such Long Term Funded
Debt shall not exceed the principal amount of such Indebtedness under this Agreement, the Existing
Credit Agreement or Indebtedness evidenced by the First Mortgage Notes, as applicable, together
with any accrued interest and prepayment charges with respect thereto, being extended, renewed,
refunded or refinanced;

(b) the Borrower may become and remain liable with respect to Indebtedness incurred by the
Borrower (i) to finance the making of expenditures for the improvement or repair (to the extent
such improvements and repairs may be capitalized on the books of the Borrower in accordance with
GAAP) of or additions (including additions by way of acquisitions or capital contributions of
businesses and related assets) to the General Collateral or (ii) by assumption of Indebtedness in
connection with additions (including additions by way of acquisitions or capital contributions of
businesses and related assets) to the General Collateral or to extend, renew, refund or refinance
any such Indebtedness; provided, that (x) the amount of such assumed Indebtedness shall not
exceed the purchase price of such additions and (y) any such extensions, renewals, refundings or
refinancings of any such Indebtedness shall not exceed the principal amount thereof;

(c) subject to Section 8.4(c) any Restricted Subsidiary may become and remain liable
with respect to Indebtedness of such Restricted Subsidiary owing to the Borrower or to a
Wholly-Owned Restricted Subsidiary, and the Borrower may become and remain liable with respect to
Indebtedness owing to a Wholly-Owned Restricted Subsidiary provided it is subordinated to the
Obligations and the Parity Debt at least to the extent provided in the subordination provisions set
forth in Exhibit I;

(d) the Borrower may become and remain liable with respect to unsecured Indebtedness of the
Borrower owing to the General Partner or an Affiliate of the General Partner, provided,
that (i) the aggregate principal amount of such Indebtedness outstanding at any time shall not be
in excess of $50,000,000 and (ii) such Indebtedness is created and is outstanding under an
agreement or instrument pursuant to which such Indebtedness is subordinated to the Obligations and
the Parity Debt at least to the extent provided in the subordination provisions set forth in
Exhibit I;

(e) the Borrower may become and remain liable with respect to Indebtedness incurred for any
purpose permitted by the Revolving Commitment (as defined in the Existing Credit Agreement), and
any Indebtedness incurred for any such permitted purpose which replaces, extends, renews, refunds
or refinances any such Indebtedness, in whole or in part, in an aggregate principal amount at any
time not in excess of $175,000,000 less the aggregate principal amount of the Acquisition Loans (as
defined in the Existing Credit Agreement) (other than Specified Acquisition Loans (as defined in
the Existing Credit Agreement)) outstanding at such time;

(f) the Borrower may become and remain liable with respect to Indebtedness, in addition to
that otherwise permitted by the foregoing subsections of this Section 8.1, if on
the date the Borrower becomes liable with respect to any such additional Indebtedness and
immediately after giving effect thereto and to the substantially concurrent repayment of any other
Indebtedness (i) the ratio of Consolidated Cash Flow to Consolidated Pro Forma Debt Service is
equal to or greater than 2.50 to 1.0 and (ii) the ratio of Consolidated Cash Flow to Average
Consolidated Pro Forma Debt Service is equal to or greater than 1.25 to 1.0;

(g) the Borrower and its Restricted Subsidiaries may become and remain liable with respect to
the Indebtedness described on Schedule 6.7;

(h) the Borrower may become and remain liable with respect to obligations under Interest Rate
Agreements entered into to hedge interest rate risk;

(i) any Person that after the Closing Date becomes a Restricted Subsidiary may become and
remain liable with respect to any Indebtedness to the extent such Indebtedness existed at the time
such Person became a Subsidiary (and was not incurred in anticipation of such Person becoming a
Subsidiary); provided, that immediately after giving effect to such Person becoming a
Restricted Subsidiary, the Borrower could incur at least $1 of additional Indebtedness in
compliance with clauses (i) and (ii) of Section 8.1(f);

(j) the Borrower and any Restricted Subsidiary may become and remain liable with respect to
Indebtedness relating to any business acquired by or contributed to the Borrower or such Restricted
Subsidiary or which is secured by a Lien on any property or assets acquired by or contributed to
the Borrower or such Restricted Subsidiary to the extent such Indebtedness existed at the time such
business or property or assets were so acquired or contributed (and was not incurred in
anticipation thereof) and if such Indebtedness is secured by such property or assets, such security
interest does not extend to or cover any other property of the Borrower or any of the Restricted
Subsidiaries, provided, that immediately after giving effect to such acquisition or
contribution, the Borrower could incur at least $1 of additional Indebtedness in compliance with
clauses (i) and (ii) of Section 8.1(f);

(k) Capitalized Lease Liabilities not in excess of $10,000,000 at any time outstanding; and

(l) the Borrower may become and remain liable with respect to Indebtedness which otherwise
complies with the terms of Section 8.1(f), the proceeds of which are used to make
distributions permitted under Section 8.5, provided, that the aggregate principal
amount of all Indebtedness incurred under this Section 8.1(l) since August 21, 2001 and
outstanding at any time shall not exceed $105,000,000, provided, further, that at
the time the Borrower incurs any Indebtedness permitted under the above provisions of this
Section 8.1(l), such Indebtedness shall have received (i) a Special Rating and (ii) an
investment grade rating from at least two nationally recognized statistical rating organizations
(as defined for purposes of Rule 436(g) under the Securities Act), such as Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc., Fitch Ratings and Moody’s
Investors Service.

Further, notwithstanding anything in this Agreement to the contrary, until the AEPLP Security Date,
the Borrower will not permit AEPLP or any of its Subsidiaries to create, incur, assume or otherwise
become or remain directly or indirectly liable with respect to any Indebtedness, other than (i)
Indebtedness of the type described in Section 8.1(c), (ii) the Indebtedness of AEPLP on the
date of closing of the Columbia Acquisition, as disclosed in the Columbia Purchase Agreement (which
amount was not in excess of $10,000,000), and (iii) the Indebtedness of AEPLP owing to the Borrower
which is evidenced by the Intercompany Note to the extent that the aggregate principal amount
outstanding thereunder does not exceed $137,997,000.

8.2 Minimum Interest Coverage. The Borrower will not permit the ratio of EBITDA to
Consolidated Interest Expense as at any fiscal quarter end for the four fiscal quarters then ending
to be less than 2.25 to 1.0.

8.3 Liens, etc. The Borrower will not, and will not permit any Restricted Subsidiary
to, directly or indirectly create, incur, assume or permit to exist any Lien on or with respect to
any property or asset (including any document or instrument in respect of goods or accounts
receivable) of the Borrower or any Restricted Subsidiary, whether now owned or hereafter acquired,
or any income or profits therefrom (whether or not provision is made for the equal and ratable
securing of the Obligations in accordance with the provisions of Section 7.12), except:

(a) Liens for taxes, assessments or other governmental charges the payment of which is not yet
due and payable or which is being contested in compliance with Section 7.5 hereof and
Section 1.18 of the Mortgages;

(b) Liens of lessors, landlords and carriers, vendors, warehousemen, mechanics, materialmen,
repairmen and other like Liens incurred in the ordinary course of business for sums not yet due or
the payment of which is being contested in compliance with Section 7.5 hereof and Section
1.18 of the Mortgages, in each case (i) not incurred or made in connection with the borrowing of
money, the obtaining of advances or credit or the payment of the deferred purchase price of
property or (ii) incurred in the ordinary course of business securing the unpaid purchase price of
property or services constituting current accounts payable; and precautionary Liens in favor of
lessors under capital leases and leases of equipment in the ordinary course of business;

(c) Liens (other than any Lien imposed by ERISA) incurred or deposits made in the ordinary
course of business (i) in connection with workers’ compensation, unemployment insurance and other
types of social security, or (ii) to secure (or to obtain letters of credit that secure) the
performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, performance
bonds, purchase, construction or sales contracts and other similar obligations, in each case not
incurred or made in connection with the borrowing of money;

(d) other deposits made to secure liability to insurance carriers under insurance or
self-insurance arrangements;

(e) Liens securing reimbursement obligations under letters of credit, provided in each
case that such Liens cover only the title documents and related goods (and any proceeds thereof)
covered by the related letter of credit;

(f) any attachment or judgment Lien, unless the judgment it secures shall not, within 60 days
after the entry thereof, have been discharged or execution thereof stayed pending appeal or review,
or shall not have been discharged within 60 days after expiration of any such stay;

(g) leases or subleases granted to others, easements, rights-of-way, restrictions and other
similar charges or encumbrances, which, in each case either (i) are granted, entered into or
created in the ordinary course of the business of the Borrower or any Restricted Subsidiary or (ii)
do not, individually or in the aggregate, present a reasonable likelihood of having a Material
Adverse Effect;

(h) Liens on property or assets of any Restricted Subsidiary securing Indebtedness of the type
described in Section 8.1(c) of such Restricted Subsidiary owing to the Borrower or a
Wholly-Owned Restricted Subsidiary;

(i) Liens created by any of the Security Documents securing the Indebtedness under this
Agreement (or any extension, renewal, refunding, replacement or refinancing of any such
Indebtedness) in accordance with Section 8.1(a);

(j) Liens created by any of the Security Documents securing Indebtedness evidenced by the
First Mortgage Notes (or any extension, renewal, refunding, replacement or refinancing of any such
Indebtedness) in accordance with Section 8.1(a);

(k) Liens created by any of the Security Documents securing the Indebtedness incurred under
the Acquisition Commitment (as defined in the Existing Credit Agreement) (or any extension,
renewal, refunding, replacement or refinancing of any such Indebtedness) in accordance with
Section 8.1(b);

(l) Liens created by any of the Security Documents securing the Indebtedness, or Letters of
Credit (as defined in the Existing Credit Agreement), incurred under the Revolving Commitment (as
defined in the Existing Credit Agreement) (or any extension, renewal, refunding, replacement or
refinancing of any such Indebtedness) in accordance with Section 8.1(e);

(m) Liens (other than the Liens referred to in clauses (i), (j), (k)
or (l) above) securing Indebtedness represented by the First Mortgage Notes or other
Indebtedness incurred in accordance with Section 8.1(b), 8.1(e) or 8.1(l)
or, to the extent incurred (i) to repay Indebtedness or letter of credit obligations incurred and
outstanding under the Acquisition Commitment or the Revolving Commitment (or any extension,
renewal, refunding, replacement or refinancing of any such Indebtedness), (ii) to finance the
making of expenditures for the improvement or repair (to the extent such improvements and repairs
may be capitalized on the books of the Borrower and the Restricted Subsidiaries in accordance with
GAAP) of or additions (including additions by way of acquisitions or capital contributions of
businesses and related assets) to the General Collateral, or (iii) by assumption in connection with
additions (including additions by way of acquisitions or capital contributions of businesses and
related assets) to the General Collateral, under Section 8.1(f), provided, that (1)
such Liens are effected through an amendment to the Security Documents to the extent necessary to
provide the holders of such Indebtedness equal and ratable security in the property and assets
subject to the Security Documents with the holders of the Notes and the other Indebtedness secured
under the Security Documents, (2) in the case of Indebtedness incurred in accordance with
Section 8.1(b) or Section 8.1(f) to finance the making of additions to the General
Collateral, the Borrower has delivered to the Collateral Agent an Officers’ Certificate
demonstrating that the principal amount of such Indebtedness (net of transaction costs funded by
the proceeds of such Indebtedness) does not exceed the lesser of the cost to the Borrower and the
Restricted Subsidiaries of such additional property or assets and the fair market value of such
additional property or assets at the time of the acquisition thereof (as determined in good faith
by the General Partner), and (3) the Borrower has delivered to the Collateral Agent an opinion of
counsel reasonably satisfactory to the Collateral Agent with regard to the attachment and
perfection of the Lien of the Security Documents with respect to such additional property and
assets;

(n) Liens existing on any property of any Person at the time it becomes a Subsidiary of the
Borrower, or existing at the time of acquisition upon any property acquired by the Borrower or any
such Subsidiary through purchase, merger or consolidation or otherwise, whether or not assumed by
the Borrower or such Subsidiary, or created to secure Indebtedness incurred under Section
8.1(f) to pay all or any part of the purchase price (a “Purchase Money Lien”) of property
(including without limitation Capital Stock and other securities) acquired by the Borrower or a
Restricted Subsidiary, provided, that (i) any such Lien shall be confined solely to such
item or items of property and, if required by the terms of the instrument originally creating such
Lien, other property which is an improvement to or is acquired for use specifically in connection
with such acquired property, (ii) such item or items of property so acquired are not required to
become part of the General Collateral under the terms of the Security Documents, (iii) in the case
of a Purchase Money Lien, the principal amount of the Indebtedness secured by such Purchase Money
Lien shall at no time exceed an amount equal to the lesser of (A) the cost to the Borrower and the
Restricted Subsidiaries of such property and (B) the fair market value of such property at the time
of the acquisition thereof (as determined in good faith by the General Partner), (iv) any such
Purchase Money Lien shall be created not later than 30 days after the acquisition of such property
and (v) any such Lien (other than a Purchase Money Lien) shall not have been created or assumed in
contemplation of such Person’s becoming a Subsidiary of the Borrower or such acquisition of
property by the Borrower or any Subsidiary;

(o) easements, exceptions or reservations in any property of the Borrower or any Restricted
Subsidiary granted or reserved for the purpose of pipelines, roads, the removal of oil, gas, coal
or other minerals, and other like purposes, or for the joint or common use of real property,
facilities and equipment, which are incidental to, and do not materially interfere with, the
ordinary conduct of the business of the Borrower or any Restricted Subsidiary;

(p) Liens arising from or constituting Permitted Encumbrances as defined under the Security
Documents; and

(q) any Lien renewing or extending any Lien permitted by subsection (h), (i),
(j), (k), (l), (m) or (n) of this Section 8.3,
provided, that (i) the principal amount of the Indebtedness secured by any such Lien shall
not exceed the principal amount of such Indebtedness outstanding immediately prior to the renewal
or extension of such Lien (together with, in the case of Indebtedness permitted by Section
8.1(a), any accrued interest thereon and prepayment charges with respect thereto), and (ii) no
assets encumbered by any such Lien other than the assets encumbered immediately prior to such
renewal or extension shall be encumbered thereby.

Notwithstanding anything in this Agreement to the contrary, until the AEPLP Security Date, other
than Liens permitted by subsections (a), (b), (c), (d),
(f), (g), (h), (o) and (to the extent that any such Lien extends or
renews a Lien permitted by subsection (h) of this Section 8.3), (q) of this
Section 8.3, the Borrower will not permit AEPLP or any of its Subsidiaries to, directly or
indirectly, create, incur, assume or permit to exist any Lien on or with respect to any property or
asset (including any document or instrument in respect of goods or accounts receivable) of AEPLP or
such Subsidiary, whether such property or assets are now owned or held or hereafter acquired, or
any income or profits therefrom.

8.4 Investments, Contingent Obligations, etc. The Borrower will not, and will not
permit any Restricted Subsidiary to, directly or indirectly (i) make or own any Investment in any
Person (including an Investment in a Subsidiary of the Borrower), (ii) create or become liable with
respect to any Contingent Obligation with respect to any Indebtedness of a Control Affiliate, or
(iii) create or become liable with respect to any Contingent Obligation (provided,
however, that nothing contained in this Section 8.4, except clause (ii)
above, is intended to limit the making of any Contingent Obligation which would be permitted as
Indebtedness under Section 8.1), except:

(a) the Borrower or any Restricted Subsidiary may make and own Investments in the following
(collectively, “Cash Equivalents”):

(i) marketable obligations issued or unconditionally guaranteed by the United States of
America, or issued by any agency thereof and backed by the full faith and credit of the United
States, in each case maturing one year or less from the date of acquisition thereof,

(ii) marketable direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof maturing within one
year from the date of acquisition thereof and having as at such date the highest rating obtainable
from either Standard & Poor’s Rating Group or Moody’s Investors Service, Inc.,

(iii) commercial paper maturing no more than 270 days from the date of creation thereof and
having as of the date of acquisition thereof one of the two highest ratings obtainable from either
Standard & Poor’s Rating Group or Moody’s Investors Service, Inc.,

(iv) certificates of deposit maturing one year or less from the date of acquisition thereof
issued by commercial banks incorporated under the laws of the United States of America or any state
thereof or the District of Columbia or Canada, (A) the commercial paper or other short term
unsecured debt obligations of which are as of such date rated either A-2 or better (or comparably
if the rating system is changed) by Standard & Poor’s Rating Group or Prime-2 or better (or
comparably if the rating system is changed) by Moody’s Investors Service, Inc. or (B) the long-term
debt obligations of which are as at such date rated either A or better (or comparably if the rating
system is changed) by either Standard & Poor’s Rating Group or A-2 or better or comparably if the
rating system is changed by Moody’s Investors Service, Inc. (“Permitted Banks”),

(v) Eurodollar time deposits having a maturity of less than 270 days from the date of
acquisition thereof purchased directly from any Permitted Bank,

(vi) bankers’ acceptances eligible for rediscount under requirements of the FRB and accepted
by Permitted Banks, and

(vii) obligations of the type described in clause (i), (ii), (iii),
(iv) or (v) above purchased from a securities dealer designated as a “primary
dealer” by the Federal Reserve Bank of New York or from a Permitted Bank as counterparty to a
written repurchase agreement obligating such counterparty to repurchase such obligations not later
than 14 days after the purchase thereof and which provides that the obligations which are the
subject thereof are held for the benefit of the Borrower or a Restricted Subsidiary by a custodian
which is a Permitted Bank and which is not a counterparty to the repurchase agreement in question;

(b) the Borrower or any Restricted Subsidiary may acquire Capital Stock or other ownership
interests, whether in a single transaction or a series of related transactions, of a Person (i)
located in the United States or Canada, (ii) incorporated or otherwise formed pursuant to the laws
of the United States or Canada or any state or province thereof or the District of Columbia and
(iii) engaged in substantially the same business as the Borrower such that, upon the completion of
such transaction or series of transactions, such Person becomes a Restricted Subsidiary;

(c) subject to the provisions of subsection (h) below, the Borrower or any Restricted
Subsidiary may make and own Investments (in addition to Investments permitted by
subsections (a), (b), (d), (e), (f) and (g)
of this Section 8.4) in any Person incorporated or otherwise formed pursuant to the laws of
the United States or Canada or any state or province thereof or the District of Columbia which is
engaged in the United States or Canada in substantially the same business as the Borrower;
provided, that (i) the aggregate amount of all such Investments made by the Borrower and
its Restricted Subsidiaries following the Original Closing Date (including without limitation the
transactions contemplated by this Agreement) and outstanding pursuant to this subsection
(c) and subsection (h) below shall not at any date of determination exceed 10% of Total
Assets (the “Investment Limit”), provided, that in addition to Investments that would be
permitted under the Investment Limit, during any fiscal year the Borrower and its Restricted
Subsidiaries may invest up to $25,000,000 (the “Annual Limit”) pursuant to the provisions of this
subsection (c), but the unused amount of the Annual Limit shall not be carried over to any
future years; and provided, further, that neither the Annual Limit nor the
Investment Limit shall include the aggregate principal amount of the Intercompany Note outstanding
on August 21, 2001 to the extent that such amount is not in excess of $137,997,000 at the time of
determination, (ii) such Investments shall become part of the General Collateral and shall be
subjected to the Lien of the Security Documents and (iii) such Investments shall not be made in
Capital Stock or Indebtedness of the Public Partnership or any of its Subsidiaries (other than the
Borrower and the Restricted Subsidiaries);

(d) the Borrower or any Restricted Subsidiary may make and own Investments (x) arising out of
loans and advances to employees incurred in the ordinary course of business not in excess of
$1,000,000 at any time outstanding, (y) arising out of extensions of trade credit or advances to
third parties in the ordinary course of business and (z) acquired by reason of the exercise of
customary creditors’ rights upon default or pursuant to the bankruptcy, insolvency or
reorganization of a debtor;

(e) the Borrower and any Restricted Subsidiary may create or become liable with respect to any
Contingent Obligation constituting an obligation, warranty or indemnity, not guaranteeing
Indebtedness of any Person, which is undertaken or made in the ordinary course of business;

(f) the Borrower may create and become liable with respect to any Interest Rate Agreements;

(g) any Restricted Subsidiary may make Investments in the Borrower;

(h) the Borrower or any Restricted Subsidiary may make or own Investments in Unrestricted
Subsidiaries, provided, that the Net Amount of Unrestricted Investment shall not at any
time exceed $5,000,000 (and subject to the limitations specified in subsection (c) above);

(i) the Borrower may own Investments consisting of the Intercompany Note to the extent that
the aggregate principal amount of the Intercompany Note does not exceed $137,990,000;

(j) AEPI, AEPH and AEPLP may remain liable for any obligations, warranties or indemnities set
forth in the National Propane Purchase Agreement as such agreement is in effect on the Closing
Date; and

(k) the Borrower may remain (i) liable for its indemnification and guarantee obligations under
the Columbia Purchase Agreement, as in effect on August 21, 2001, and (ii) under the Keep Well
Agreement, as in effect on August 21, 2001.

Notwithstanding the foregoing, the Borrower may have outstanding undrawn letters of credit not
in excess of $100,000,000.

8.5 Restricted Payments. The Borrower will not directly or indirectly declare, order,
pay, make or set apart any sum for any Restricted Payment, except that the Borrower may declare or
order, and make, pay or set apart, once during each calendar quarter a Restricted Payment if (a)
such Restricted Payment is in an amount not exceeding Available Cash for the immediately preceding
calendar quarter, and (b) immediately after giving effect to any such proposed action no Event of
Default (or Default under Sections 9.1(a), (f) or (g)) shall exist and be
continuing; provided, that notwithstanding the foregoing, the Borrower may declare, order,
pay, make or set apart sums for Restricted Payments to the Public Partnership at any time, and from
time to time, in an aggregate amount not exceeding the proceeds of Indebtedness of the Borrower
incurred pursuant to Section 8.1(l) if immediately after giving effect to any such proposed
action no Event of Default (or Default under Sections 9.1(a), (f), or (g))
shall exist and be continuing. The Borrower will comply with, and accrue on its books, the reserve
provisions required under the definition of Available Cash. The Borrower will not, in any event,
directly or indirectly declare, order, pay or make any Restricted Payment except in cash. The
Borrower will not permit any Restricted Subsidiary to declare, order, pay or make any Restricted
Payment or to set apart any sum or property for any such purpose (it being understood that nothing
in this Section 8.5 shall prohibit any such Restricted Subsidiary from declaring, ordering,
paying, making, or setting apart any sum or property for, any payment or other distribution or
dividend to (i) the Borrower or any Wholly-Owned Restricted Subsidiary and (ii) so long as no
Default or Event of Default shall occur and be continuing, all holders of Capital Stock of such
Restricted Subsidiary on a pro rata basis) (with any such distribution or dividend to a Control
Affiliate being subject to the limitation of the first sentence of this Section 8.5).

8.6 Transactions with Affiliates. The Borrower will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, engage in any transaction with any Affiliate,
including without limitation the purchase, transfer, disposition, sale, lease or exchange of assets
or the rendering of any service, unless (1)(a) such transaction or series of related transactions
is on fair and reasonable terms that are no less favorable to the Borrower or such Restricted
Subsidiary, as the case may be, than those which would be obtained in an arm’s-length transaction
at the time such transaction is agreed upon between Persons which are not Affiliates, and (b) with
respect to a transaction or series of transactions involving aggregate payments or value equal to
or greater than $15 million, the Borrower shall have delivered an Officers’ Certificate to the
Agent certifying that such transaction or series of transactions complies with the preceding
clause (a) and that such transaction or series of transactions has been approved by a
majority of the Board of Directors of the General Partner (including a majority of the
Disinterested Directors), or (2) such transaction or series of related transactions is between the
Borrower and any Wholly-Owned Restricted Subsidiary or between two Wholly-Owned Restricted
Subsidiaries, provided, however, that this Section 8.6 will not restrict
the Borrower, any Restricted Subsidiary or the General Partner from entering into (i) any
employment agreement, stock option agreement, restricted stock agreement or other similar agreement
or arrangement in the ordinary course of business, (ii) transactions permitted by Section
8.5 and (iii) transactions in the ordinary course of business in connection with reinsuring the
self-insurance programs or other similar forms of retained insurable risks of the retail propane
business operated by the Borrower, its Subsidiaries and its Affiliates.

8.7 Subsidiary Stock and Indebtedness. The Borrower will not:

(a) directly or indirectly sell, assign, pledge or otherwise dispose of any Indebtedness of or
any shares of stock or similar interests of (or warrants, rights or options to acquire stock or
similar interests of) any Restricted Subsidiary, except to a Wholly-Owned Restricted Subsidiary;

(b) permit any Restricted Subsidiary directly or indirectly to sell, assign, pledge or
otherwise dispose of any Indebtedness of the Borrower or any other Restricted Subsidiary, or any
shares of stock or similar interests of (or warrants, rights or options to acquire stock or similar
interests of) any other Restricted Subsidiary, except to the Borrower or a Wholly-Owned Restricted
Subsidiary;

(c) permit any Restricted Subsidiary to have outstanding any shares of stock or similar
interests which are preferred over any other shares of stock or similar interests in such
Restricted Subsidiary owned by the Borrower or a Wholly-Owned Restricted Subsidiary unless such
shares of preferred stock or similar interests are owned by the Borrower or a Wholly-Owned
Restricted Subsidiary; or

(d) permit any Restricted Subsidiary directly or indirectly to issue or sell (including
without limitation in connection with a merger or consolidation of such Subsidiary otherwise
permitted by Section 8.8(a)) any shares of its stock or similar interests (or warrants,
rights or options to acquire its stock or similar interests) except to the Borrower or a
Wholly-Owned Restricted Subsidiary;

provided, that (i) any Restricted Subsidiary may sell, assign or otherwise dispose of
Indebtedness of the Borrower if, assuming such Indebtedness were incurred immediately after such
sale, assignment or disposition, such Indebtedness would be permitted under Section 8.1
(other than Section 8.1(c)) (in which case such Indebtedness need not be subject to the
subordination provisions required by Section 8.1(c)) and (ii) subject to compliance with
Section 8.8(c), all Indebtedness and shares of stock or partnership interests of any
Restricted Subsidiary owned by the Borrower or any other Restricted Subsidiary may be
simultaneously sold as an entirety for an aggregate consideration at least equal to the fair value
thereof (as determined in good faith by the General Partner) at the time of such sale if (x) such
Restricted Subsidiary does not at the time own (A) any Indebtedness of the Borrower or any other
Restricted Subsidiary (other than Indebtedness which, if incurred immediately after such
transaction, would be permitted under Section 8.1, other than Section 8.1(c)) (in
which case such Indebtedness need not be subject to the subordination provisions required by
Section 8.1(c)) or (B) any stock or other interest in any other Restricted Subsidiary which
is not also being simultaneously sold as an entirety in compliance with this proviso or Section
8.8(b)(ii) and (y) at the time of such transaction and immediately after giving effect thereto,
the Borrower could incur at least $1 of additional Indebtedness in compliance with clauses
(i) and (ii) of Section 8.1(f) and (iii) AEPLP may issue or sell its Capital Stock to
the Special Limited Partner (as defined in the AEPLP Partnership Agreement) of AEPLP in accordance
with Section 5.3 of the AEPLP Partnership Agreement, as such Section 5.3 was in effect on August
21, 2001.

8.8 Consolidation, Merger, Sale of Assets, etc. The Borrower will not, and will not
permit any Restricted Subsidiary to, directly or indirectly,

(a) consolidate with or merge into any other Person or permit any other Person to consolidate
with or merge into it, except that:

(i) any Restricted Subsidiary may consolidate with or merge into the Borrower or a
Wholly-Owned Restricted Subsidiary if the Borrower or a Wholly-Owned Restricted Subsidiary, as the
case may be, shall be the surviving Person and if, immediately after giving effect to such
transaction, no Default or Event of Default shall exist and be continuing; and

(ii) any entity (other than a Restricted Subsidiary) may consolidate with or merge into the
Borrower or a Wholly-Owned Restricted Subsidiary if the Borrower or a Wholly-Owned Restricted
Subsidiary, as the case may be, shall be the surviving Person and if, immediately after giving
effect to such transaction, (x) the Borrower (1) shall not have a Consolidated Net Worth,
determined in accordance with GAAP applied on a basis consistent with the consolidated financial
statements of the Borrower most recently delivered pursuant to Section 7.1(b), of less than
the Consolidated Net Worth of the Borrower immediately prior to the effectiveness of such
transaction, satisfaction of this requirement to be set forth in reasonable detail in an Officers’
Certificate delivered to the Agent at the time of such transaction, (2) shall not be liable with
respect to any Indebtedness or allow its property to be subject to any Lien which it could not
become liable with respect to or allow its property to become subject to under this Agreement
(including without limitation under Section 8.1 or 8.3) on the date of such
transaction, and (3) could incur at least $1 of additional Indebtedness in compliance with
clauses (i) and (ii) of Section 8.1(f), (y) substantially all of the assets
of the Borrower and its Restricted Subsidiaries shall be located and substantially all of their
business shall be conducted within the United States and Canada and (z) no Default or Event of
Default shall exist and be continuing; and

(iii) subject to compliance with Section 12.1, the Borrower may consolidate with or
merge into any other entity if (w) the surviving entity is a corporation or limited partnership
organized and existing under the laws of the United States of America or any state thereof or the
District of Columbia, with substantially all of its properties located and its business conducted
(without giving effect to the properties owned by, and the business conducted by, Unrestricted
Subsidiaries) within the United States and Canada, (x) such corporation or limited partnership
expressly and unconditionally assumes the obligations of the Borrower under this Agreement, and the
other Loan Documents and License Agreements to which the Borrower is a party, and delivers to the
Agent an opinion of counsel reasonably satisfactory to the Required Banks with respect to the due
authorization and execution of the related agreement of assumption and the enforceability of such
agreement against such corporation or partnership and the continued effectiveness and priority of
the Liens of the Security Documents, (y) immediately after giving effect to such transaction, such
corporation or limited partnership (1) shall not have (without giving effect to Unrestricted
Subsidiaries) a Consolidated Net Worth, determined in accordance with GAAP applied on a basis
consistent with the consolidated financial statements of the Borrower most recently delivered
pursuant to Section 7.1(b), of less than the Consolidated Net Worth of the Borrower
immediately prior to the effectiveness of such transaction, satisfaction of this requirement to be
set forth in reasonable detail in an Officers’ Certificate delivered to the Agent at the time of
such transaction, (2) shall not be liable with respect to any Indebtedness or allow its property to
be subject to any Lien which it could not become liable with respect to or allow its property to
become subject to under this Agreement (including without limitation under Section 8.1 or
8.3) on the date of such transaction and (3) could incur at least $1 of additional
Indebtedness in compliance with clauses (i) and (ii) of Section 8.1(f), and
(z) immediately after giving effect to such transaction no Default or Event of Default shall exist
and be continuing; or

(b) sell, lease, abandon or otherwise dispose of all or substantially all its assets, except
that:

(i) any Restricted Subsidiary may sell, lease or otherwise dispose of all or substantially all
its assets to the Borrower or to a Wholly-Owned Restricted Subsidiary; and

(ii) subject to compliance with clause (c) of this Section 8.8, any Restricted
Subsidiary may sell, lease or otherwise dispose of all or substantially all its assets as an
entirety for an aggregate consideration at least equal to the fair value thereof (as determined in
good faith by the General Partner) at the time of such sale if (x) the assets being sold, leased or
otherwise disposed of do not include (A) any Indebtedness of the Borrower or any other Restricted
Subsidiary (other than Indebtedness which, if incurred immediately after such transaction, would be
permitted under Section 8.1 (other than Section 8.1(c)) so long as such
Indebtedness is held by a Person other than the Borrower or a Restricted Subsidiary), in which case
such Indebtedness need not be subject to the subordination provisions required by Section
8.1(c) or (B) any stock of or other equity interest in any other Restricted Subsidiary which is
not also being simultaneously sold as an entirety in compliance with this subsection
(b)(ii) or the proviso of Section 8.7 and (y) at the time of such transaction and
immediately after giving effect thereto, the Borrower could incur at least $1 of additional
Indebtedness in compliance with clauses (i) and (ii) of Section 8.1(f); and

(iii) the Borrower may sell, lease or otherwise dispose of all or substantially all its assets
to any corporation or limited partnership into which the Borrower could be consolidated or merged
in compliance with subsection (a)(iii) of this Section 8.8, provided, that
each of the conditions set forth in such subsection (a)(iii) shall have been fulfilled; or

(c) (1) sell, lease, convey, abandon or otherwise dispose of any of its assets (except in a
transaction permitted by subsection (a)(i), (a)(iii), (b)(i) or
(b)(iii) of this Section 8.8 or sales of inventory in the ordinary course of
business consistent with past practice), including by way of a Sale and Lease-Back Transaction, or
(2) issue or sell Capital Stock of the Borrower or any Subsidiary (other than to the Borrower or a
Wholly-Owned Restricted Subsidiary), in the case of either clause (1) or (2) above,
whether in a single transaction or a series of related transactions (each of the foregoing
non-excepted transactions, an “Asset Sale”), unless:

(i) immediately after giving effect to such proposed disposition, no Default or Event of
Default shall exist and be continuing; and

(ii) one of the following two conditions shall be satisfied:

(A) the aggregate Net Proceeds of all assets so disposed of (whether or
not leased back) by the Borrower and its Restricted Subsidiaries during the
current fiscal year (including (x) amounts deemed to be proceeds in
connection with designations of Restricted Subsidiaries as Unrestricted
Subsidiaries during such fiscal year under Section 7.13, (y) Net
Proceeds of dispositions of shares pursuant to Section 8.7 or sales
of assets pursuant to Section 8.8(b)), less the amount of all Net
Proceeds of prior dispositions of assets during such fiscal year previously
applied in accordance with subsection (ii)(B) of this Section
8.8(c), shall not exceed $10,000,000 during such fiscal year; or

(B) in the event that such Net Proceeds (less the amount thereof
previously applied in accordance with this subsection (ii)(B) during
the current fiscal year exceed $10,000,000 (such excess Net Proceeds
actually realized being herein called “Excess Sale Proceeds”), the Borrower
shall within 360 days of the date of the disposal of the assets giving rise
to such proceeds, cause an amount equal to such Excess Sale Proceeds to be
applied (with the designation of an Unrestricted Subsidiary as a Restricted
Subsidiary being deemed to be such an application to the extent of the fair
value of such Restricted Subsidiary as determined in good faith by the
General Partner) (x) to the acquisition of assets in replacement of the
assets so disposed of or of assets which may be productively used in the
United States or Canada in the conduct of the Business (and such newly
acquired assets shall become part of the General Collateral and shall be
subjected to the Lien of the Security Documents), or (y) to the extent not
applied pursuant to the immediately preceding clause (x), to the
prepayment of the Obligations and Parity Debt, if any, pursuant to
Section 2.7(a) hereof, all as provided in Section 4(c) of the
Collateral Agency Agreement and such Section 2.7(a); and

(iii) (A) the consideration received for such assets is at least equal to their aggregate fair
market value (as determined in good faith by the Board of Directors of the General Partner) at the
time of such disposition and that such consideration has been applied or is being held for
application in accordance with the terms of this Agreement and (B) at least 80% of the
consideration therefor received is in the form of cash; provided, however, that the
amount of (1) any liabilities (as shown on the Borrower’s or such Restricted Subsidiary’s most
recent balance sheet or in the notes thereto) of the Borrower or any Restricted Subsidiary (other
than liabilities that are by their terms subordinated in right of payment to the Loans) that are
assumed by the transferee of any such assets and (2) any notes or other obligations received by the
Borrower or any such Restricted Subsidiary from such transferee that are immediately converted by
the Borrower or such Restricted Subsidiary into cash (to the extent of the cash received), shall be
deemed to be cash for purposes of this clause (B); and provided, further, that the
80% limitation referred to in this clause (B) shall not apply to any Asset Sale in which the cash
portion of the consideration received therefrom, determined in accordance with the foregoing
proviso, is equal to or greater than what the after-tax proceeds would have been had such Asset
Sale complied with the aforementioned 80% limitation.

Notwithstanding the foregoing, Asset Sales shall not be deemed to include (1) any transfer of
assets or issuance or sale of Capital Stock by the Borrower or any Restricted Subsidiary to the
Borrower or a Wholly-Owned Restricted Subsidiary, (2) any transfer of assets or issuance or sale of
Capital Stock by the Borrower or any Restricted Subsidiary to any Person in exchange for other
assets used in a line of business permitted under Section 7.4(c) and having a fair market
value (as determined in good faith by the General Partner) not less than that of the assets so
transferred or Capital Stock so issued or sold (so long as such assets shall become part of the
General Collateral and shall be subjected to the Lien of the Security Documents) and (3) any
transfer of assets pursuant to an Investment permitted by Section 8.4.

8.9 Use of Proceeds. (a) The Obligors will not, and will not suffer or permit any
Subsidiary to, use any portion of the Loan proceeds, directly or indirectly, (i) to purchase or
carry Margin Stock, (ii) to repay or otherwise refinance Indebtedness of the Borrower or others
incurred to purchase or carry Margin Stock, (iii) to extend credit for the purpose of purchasing or
carrying any Margin Stock, or (iv) to acquire any security in any transaction that is subject to
Section 13 or 14 of the Exchange Act.

(b) The proceeds of the Loans will be used by the Borrower to refinance, in part, the
Borrower’s mandatory principal repayment under the Series A-C First Mortgage Notes.

8.10 Change in Business. The Borrower will not, and will not suffer or permit any
Restricted Subsidiary to, engage in any material line of business substantially different from the
Business.

8.11 Accounting Changes. The Borrower will not, and will not suffer or permit any
Restricted Subsidiary to, make any significant change in accounting treatment or reporting
practices, except as required by GAAP, or change the fiscal year of the Borrower or of any
Subsidiary.

8.12 Reserved.

8.13 Receivables. The Borrower will not, and will not permit any Restricted
Subsidiary to, discount, pledge or sell (with or without recourse) any of its accounts or notes
receivable, except for sales of receivables (i) made in the ordinary course of business with a face
amount not to exceed $500,000 in the aggregate which have been sold and remain unpaid by the
account debtors, (ii) without recourse which are seriously past due and which have been
substantially written off as uncollectible or collectible only after extended delays, (iii) from a
Restricted Subsidiary to the Borrower or (iv) made in connection with the sale of a business but
only with respect to the receivables directly generated by the business so sold.

8.14 Leverage Ratio. The Borrower will not permit the Leverage Ratio at any time to
exceed 4.75 to 1.00. For purposes of this Section 8.14, the Borrower may elect whether to
calculate EBITDA (i) as at the end of any fiscal quarter for the four full consecutive fiscal
quarters most recently ended or (ii) as at the end of any fiscal quarter for the eight full
consecutive fiscal quarters most recently ended (in which case EBITDA shall be divided by two).

8.15 Acquisitions. After the date hereof and until the AEPLP Security Date, the
Borrower will not, and will not permit any Restricted Subsidiary to, make any Acquisition unless,
after giving effect to the consummation of such Acquisition (including any substantially concurrent
mergers), (a) all PP&E Assets acquired in connection with such Acquisition shall be owned by the
Borrower or a Restricted Subsidiary, (b) the aggregate net book value of the PP&E Assets of AEPLP
and its Subsidiaries (both prior to and after giving effect to such Acquisition) shall not exceed
the sum of (i) 33-1/3% of the aggregate net book value of all PP&E Assets of the Borrower and its
Restricted Subsidiaries and (ii) $70,000,000 and (c) the aggregate net book value (as determined in
good faith by the General Partner) of all PP&E Assets acquired by AEPLP or any of its Subsidiaries
in any fiscal year pursuant to Acquisitions (other than PP&E Assets acquired with the proceeds of
any prior or concurrent Capped Investments or PP&E Transfers) (“AEPLP Acquisitions”) shall not,
together with any Capped Investments and any PP&E Transfers made in such fiscal year pursuant to
Section 8.17(a) and Section 8.17(b)(iii), respectively, in the aggregate, exceed
(i) $35,000,000 (the “Yearly Threshold”), plus (ii) the amount of any Carryover Threshold (such sum
is referred to herein as the “PP&E Acquisition/Investment/Transfer Limit”). “Carryover Threshold”
shall mean, for any fiscal year, an amount equal to the PP&E Acquisition/Investment/Transfer Limit
for the prior fiscal year minus the aggregate AEPLP Acquisitions, Capped Investments and PP&E
Transfers in such prior fiscal year, provided, that the Carryover Threshold shall in no
event exceed $100,000,000. As of December 31, 2004, the Carryover Threshold was $100,000,000 and
the PP&E Acquisition/Investment/Transfer Limit for the period ending December 31, 2004 was
$33,851,588.

8.16 Limitation on Restricted Agreements. The Borrower will not, and will not permit
any Subsidiary to, enter into, or suffer to exist, any agreement (other than the National Propane
Purchase Agreement) with any Person which, directly or indirectly, prohibits or limits the ability
of any Restricted Subsidiary to (a) pay dividends or make other distributions to the Borrower or
prepay any Indebtedness owed to the Borrower, (b) make loans or advances to the Borrower or (c)
transfer any of its properties or assets to the Borrower.

8.17 AEPLP. Notwithstanding anything in this Agreement to the contrary (including the
final paragraph of Section 8.8 hereof), until the first date as of which (i) the property
and assets of AEPLP and each of its Subsidiaries have become part of the General Collateral and are
subjected to the Lien of the Security Documents and (ii) AEPLP and each of its Subsidiaries have
become guarantors under the Subsidiary Guarantee and assignors under the Subsidiary Security
Agreement in accordance with Section 7.9 and 7.11 hereof (such date, the “AEPLP
Security Date”), provided, that (A) the security interest granted by AEPLP pursuant to the
Subsidiary Security Agreement may be subject and subordinate to the first priority Lien on the
assets of AEPLP held by the Borrower to secure the obligations of AEPLP under the Intercompany Note
and the Intercompany Loan Agreement, upon terms and conditions satisfactory to the Collateral
Agent, (B) the security interest granted by any Subsidiary of AEPLP pursuant to the Subsidiary
Security Agreement may be subject and subordinate to the first priority Lien on the assets of such
Subsidiary held by the Borrower to secure the obligation of such Subsidiary to guarantee (the
“AEPLP Subsidiary Guaranty”) the obligations of AEPLP under the Intercompany Note and the
Intercompany Loan Agreement, upon terms and conditions satisfactory to the Collateral Agent, (C)
the Subsidiary Guarantee of each Subsidiary of AEPLP may be subject and subordinate to the guaranty
of such Subsidiary in favor of the Borrower pursuant to the AEPLP Subsidiary Guaranty of such
Subsidiary, upon terms and conditions satisfactory to the Collateral Agent, and (D) the Subsidiary
Guarantee of AEPLP may be subject and subordinate to the obligations of AEPLP under the
Intercompany Note and the Intercompany Loan, upon terms and conditions satisfactory to the
Collateral Agent:

(a) Investments. The Borrower will not, and will not permit any Restricted Subsidiary
(other than AEPLP and its Subsidiaries) (each, a “Non-AEPLP Restricted Subsidiary”) to, directly or
indirectly, make or own any Investment in AEPLP or any of its Subsidiaries, except for Investments
in AEPLP or its Subsidiaries permitted under Sections 8.4(b), (c), (d),
(e), (i) and (j) and Section 8.17(b) hereof; provided,
however, that the aggregate net book value (as determined in good faith by the General
Partner) of all such Investments made pursuant to Sections 8.4(b) and (c) (the
“Capped Investments”) in any fiscal year shall not, together with any AEPLP Acquisitions and PP&E
Transfers made in such fiscal year pursuant to Section 8.15 and Section
8.17(b)(iii), respectively, in the aggregate, exceed the PP&E Acquisition/Investment/Transfer
Limit for such fiscal year.

(b) Asset Transfers. The Borrower will not, and will not permit any Non-AEPLP
Restricted Subsidiary to, directly or indirectly, sell, lease, convey or otherwise transfer,
directly or indirectly, any of its assets to AEPLP or any Subsidiary of AEPLP, including by way of
a Sale and Lease-Back Transaction (each, a “Transfer”), except that:

(i) the Borrower may, and may permit any non-AEPLP Restricted Subsidiary to, Transfer to AEPLP
or any of its Subsidiaries assets, provided, that (A) such assets (“Non-PP&E Assets”) would
not, in accordance with the past practice of the Borrower, be classified and accounted for as
“property, plant and equipment” on the consolidated balance sheet of the Borrower and the
Restricted Subsidiaries, (B) the consideration paid by AEPLP or its Subsidiaries to the Borrower or
a Non-AEPLP Restricted Subsidiary for such Non-PP&E Assets is at least equal to the transferor’s
aggregate net book value therefor and (C) the aggregate amount of propane inventory (by number of
gallons) of AEPLP and its Subsidiaries shall not at any time exceed 40% of the aggregate amount of
propane inventory (by number of gallons) of the Borrower and the Restricted Subsidiaries;

(ii) the Borrower may, and may permit any Non-AEPLP Restricted Subsidiary to, Transfer to
AEPLP or any of its Subsidiaries assets in exchange for other assets used in the line of business
permitted under Section 8.10 and having a fair market value (as determined in good faith by
the General Partner, and the Managing General Partner (as defined in the AEPLP Partnership
Agreement) of AEPLP) not less than that of the assets so Transferred (so long as the assets
Transferred to the Non-AEPLP Restricted Subsidiary or to the Borrower shall become part of the
General Collateral and shall be subjected to the Lien of the Security Documents);

(iii) the Borrower may, and may permit any Non-AEPLP Restricted Subsidiary to, Transfer (a
“PP&E Transfer”) to AEPLP or any of its Subsidiaries PP&E Assets (together with associated working
capital), provided, that (A) the aggregate net book value (as determined in good faith by
the General Partner) of all PP&E Assets that are Transferred by the Borrower or a Non-AEPLP
Restricted Subsidiary to AEPLP or any of its Subsidiaries in any fiscal year shall not, together
with any AEPLP Acquisitions and Capped Investments made in such fiscal year pursuant to Section
8.15 and Section 8.17(a), respectively, in the aggregate, exceed the PP&E
Acquisition/Investment/Transfer Limit for such fiscal year; (B) the consideration paid by AEPLP or
its Subsidiaries to the Borrower or any Non-AEPLP Restricted Subsidiary for such PP&E Assets is at
least equal to the transferor’s net book value therefor; (C) the aggregate net book value of all
PP&E Assets of AEPLP and its Subsidiaries shall not at any time exceed the sum of (i) 33-1/3% of
the aggregate net book value of all PP&E Assets of the Borrower and its Restricted Subsidiaries and
(ii) $70,000,000;

(iv) the limitations contained in Sections 8.15(b) and (c) and Sections
8.17(b)(iii)(A) and (C) shall not apply to or prohibit or otherwise restrict (A) any
Investment in AEPLP or any of its Subsidiaries permitted by Section 8.17(a), (B) any lease
of real or personal property from the Borrower or a Restricted Subsidiary (other than AEPLP and its
Subsidiaries), as lessor, to AEPLP or a Subsidiary of AEPLP, as lessee, where the interest of the
lessee in the leased assets is expressly subject to the Liens created by the Security Documents
securing Indebtedness evidenced by the Notes, (C) any Transfer of assets by the Borrower or any
Non-AEPLP Restricted Subsidiary to AEPLP or any of its Subsidiaries if (1) such assets consist of
the proceeds, or assets purchased or subsequently funded with the proceeds, of a sale of equity
interests or debt of the Public Partnership or the General Partner to an entity other than the
Borrower or any Restricted Subsidiaries, (2) such Transfer is made within one year of such equity
or debt sale and (3) in the case of a subsequent funding, such proceeds are used to repay Parity
Debt of the Borrower (other than Indebtedness incurred previously pursuant to Section
8.1(e) [or (to the extent such Indebtedness incurred pursuant to Section 8.1(f) is used
to repay Indebtedness or letter of credit obligations incurred and outstanding under the Revolving
Credit Facility) 8.1(f)] or Indebtedness incurred by the Borrower to make Acquisitions of
assets that have been Transferred to AEPLP, or (D) any AEPLP Acquisition (1) if the assets acquired
are purchased in exchange for equity interests or debt of the Public Partnership or the General
Partner or (2)(x) if the assets acquired are purchased or subsequently funded with the proceeds of
a sale of equity interests or debt by the Public Partnership or the General Partner to an entity
other than the Borrower or any Restricted Subsidiary, (y) such AEPLP Acquisition is made within one
year of such equity or debt sale and (z) in the case of a subsequent funding, such proceeds are
used to repay Parity Debt of the Borrower (other than Indebtedness incurred pursuant to Section
8.1(e) [or (to the extent such Indebtedness incurred pursuant to Section 8.1(f) is used
to repay Indebtedness or letter of credit obligations incurred and outstanding under the Revolving
Credit Facility) 8.1(f)] or Indebtedness incurred by AEPLP (and owing to the Borrower) or
the Borrower to make AEPLP Acquisitions.

(c) AEPLP Partnership Agreement. The Borrower will not, and will cause its
Subsidiaries to not, (i) permit the AEPLP Partnership Agreement, as in effect on the date hereof,
to be amended, modified or supplemented in any respect if such amendment, modification or
supplement would adversely affect the rights or powers of the Managing General Partner, or any
successor General Partner (each as defined in the AEPLP Partnership Agreement), with respect to the
liquidation, dissolution or winding-up of the affairs of AEPLP or any disposition of assets,
discharge of liabilities or distribution of assets in connection therewith (including but not
limited to any modification to Section 12.1 of the Partnership Agreement) or (ii) permit AEPLP to
admit any Person as a Class A Limited Partner or any Managing General Partner (as defined in the
AEPLP Partnership Agreement) unless all of the capital stock of such Person has been pledged to the
Collateral Agent for the benefit of the Banks and the other holders of Parity Debt.

(d) Trade Accounts Payable. The Borrower will not permit AEPLP and its Subsidiaries
to create, incur, assume or otherwise become or remain directly or indirectly liable with respect
to an aggregate amount of trade accounts payable (including but not limited to amounts owed under
equipment leases) in excess of $15,000,000 at any time, provided, that the amount of any
(a) AEPLP Taxes, fines or penalties owing by AEPLP and its Subsidiaries to any Governmental
Authority and (b) obligations of AEPLP and its Subsidiaries owing to the Borrower or any Restricted
Subsidiary, shall in each case be excluded from the calculation of the aggregate amount of trade
accounts payables pursuant to this Section 8.17(d).

In addition, both prior to and after the AEPLP Security Date, the Borrower will not, and will cause
its Subsidiaries to not, permit the Intercompany Note to be amended, modified or supplemented in
any respect if such amendment, modification or supplement would materially and adversely affect the
rights of the holder of the Intercompany Note (in its capacity as a holder of the Intercompany
Note), including, without limitation, any modification of the July 19, 2009, maturity date of the
outstanding principal amount thereunder.

ARTICLE IX

EVENTS OF DEFAULT

9.1 Event of Default. Any of the following shall constitute an “Event of Default”:

(a) Non-Payment. The Borrower fails to pay the Agent or any Bank (i) when and as
required to be paid herein, any amount of principal of any Loan, or (ii) within 5 days after the
same becomes due, any interest, fee, or any other amount payable to the Agent or the Banks
hereunder or under any other Loan Document; or

(b) Representation or Warranty. Any representation or warranty made in writing by any
Obligor, or any Restricted Subsidiary made or deemed made herein, in any other Loan Document, or in
any License Agreements, or which is contained in any certificate, financial statement or other
document of such Obligor or such Restricted Subsidiary required to be delivered hereunder,
furnished at any time under this Agreement, or in or under any other Loan Document, is incorrect in
any material respect on or as of the date made or deemed made; or

(c) Specific Defaults. There shall be a default in the performance of, or compliance
with, any term contained in Section 7.1(g) or any of Sections 8.1 through
8.8, inclusive, 7.4(a)(i), 8.14 (and, in the case of the first sentence of
Section 8.14, such default shall continue unremedied for 30 days) and 8.17,
provided, however, that with respect to (i) incurrence of Indebtedness in violation
of Section 8.1 in an aggregate outstanding principal amount which is less than $5,000,000,
(ii) incurrence of a Lien in violation of Section 8.3 which secures Indebtedness which is
in an aggregate outstanding principal amount of less than $5,000,000, (iii) transactions with an
Affiliate in violation of Section 8.6 involving an aggregate amount of less than
$2,000,000, (iv) the making of any Investment or creation of a Contingent Obligation in violation
of Section 8.4 involving an aggregate amount of less than $2,000,000, or (v) the entering
into of any transaction in violation of Section 8.7 involving an aggregate amount of less
than $2,000,000, there shall be no Event of Default hereunder unless the aggregate amount of all
violations under clauses (i) through (v) exceeds $8,000,000 on any date of
determination or any such violation shall remain uncured for 30 days after a Responsible Officer
becomes aware of any such violation; or

(d) Other Defaults. Any Obligor, or any Restricted Subsidiary fails to perform or
observe any other term or covenant contained in this Agreement, any other Loan Document, or in any
License Agreements, and such default shall continue unremedied for a period of 30 days after the
date upon which written notice thereof is given to the Obligors by the Agent or the Required Banks;
provided, however, that defaults under any Mortgage shall not constitute an Event
of Default under this subsection (d) unless such default shall not have been remedied
within the applicable 30-day period and when aggregated with all other defaults described in this
proviso (w) applies to at least 17 Mortgages, or (x) applies to Mortgages covering Mortgaged
Property having an aggregate fair market value at the time of at least $1,000,000, or (y) would
cost in excess of $1,000,000 to cure or would present a reasonable likelihood of resulting in
liability to the Borrower or the Restricted Subsidiaries in excess of $1,000,000 or (z) would
result in a Material Adverse Effect; or

(e) Cross-Default. The Borrower, any Restricted Subsidiary, the General Partner, any
of its Subsidiaries or the Public Partnership or any of its Subsidiaries (other than the
Partnership Unrestricted Subsidiaries) (as principal or guarantor or other surety) shall default in
the payment of any amount of principal of or premium or interest on any Parity Debt or any other
Indebtedness, other than the Obligations (regardless of whether or not such payment default shall
have been waived by the holders of such Indebtedness); or any event shall occur or condition shall
exist in respect of any Indebtedness of the Borrower, any Restricted Subsidiary, the General
Partner, any of its Subsidiaries or the Public Partnership or any of its Subsidiaries (other than
the Partnership Unrestricted Subsidiaries) or under any evidence of any such Indebtedness or under
any mortgage, indenture or other agreement relating thereto, and the effect of such event or
condition is to cause (or to permit one or more Persons to cause) such Indebtedness to become due
or be repurchased or repaid before its stated maturity or before its regularly scheduled dates of
payment (other than pursuant to mandatory prepayment provisions pursuant to a (1) Change of Control
or similar transaction or (2) prepayment under circumstances and on terms substantially identical
to, and not inconsistent with, Section 9.3(b) of each of the First Mortgage Note Agreements
to the extent it relates to Excess Taking Proceeds, as defined therein, or Section
8.8(c)(ii) hereof to the extent it relates to Excess Sale Proceeds, in each case not involving
a default) or to permit the holders thereof to cause the Borrower, any Restricted Subsidiary, the
General Partner, any of its Subsidiaries or the Public Partnership or any of its Subsidiaries
(other than the Partnership Unrestricted Subsidiaries) to repurchase or repay such Indebtedness
(other than pursuant to mandatory prepayment provisions pursuant to a (1) Change of Control or
similar transaction or (2) prepayment under circumstances and on terms substantially identical to,
and not inconsistent with, Section 9.3(b) of each of the First Mortgage Note Agreements to
the extent it related to Excess Taking Proceeds, as defined therein, or Section 8.3(c)(ii)
hereof to the extent it relates to Excess Sale Proceeds, in each case not involving a default), and
such default, event or condition shall continue for more than the period of grace, if any,
specified therein (regardless of whether or not such default, event or condition shall have been
waived by the holders of such Indebtedness); provided, that the aggregate principal amount
of all Indebtedness as to which such a default (payment or other), event or condition shall occur
or exist exceeds $7,500,000; or

(f) Insolvency Voluntary Proceedings. Any Obligors, or any Significant Subsidiary
Group (i) ceases or fails to be solvent, or admits in writing its inability to pay its debts as
they become due, subject to applicable grace periods, if any, whether at stated maturity or
otherwise; (ii) voluntarily ceases to conduct its business in the ordinary course; (iii) commences
any Insolvency Proceeding with respect to itself; or (iv) takes any action to effectuate or
authorize any of the foregoing; or

(g) Involuntary Proceedings. (i) Any involuntary Insolvency Proceeding is commenced
or filed against any Obligor, or any Significant Subsidiary Group, or any writ, judgment, warrant
of attachment, execution or similar process, is issued or levied against a substantial part of any
Obligor’s, or any such Significant Subsidiary Group’s properties, and any such proceeding or
petition shall not be dismissed, or such writ, judgment, warrant of attachment, execution or
similar process shall not be released, vacated or fully bonded within 60 days after commencement,
filing or levy; (ii) any Obligor, or any such Significant Subsidiary Group admits the material
allegations of a petition against it in any Insolvency Proceeding, or an order for relief (or
similar order under non-U.S. law) is ordered in any Insolvency Proceeding; or (iii) any Obligor, or
any such Significant Subsidiary Group acquiesces in the appointment of a receiver, trustee,
custodian, conservator, liquidator, mortgagee in possession (or agent therefor), or other similar
Person for itself or a substantial portion of its property or business; or

(h) Judgments. Any judgment or order for the payment of money in excess of $9,000,000
and not covered by insurance shall be rendered against any of the Obligors or any Significant
Subsidiary Group, and either

(i) enforcement proceedings shall have been commenced by any creditor upon such
judgment or order; or

(ii) there shall be any period of 60 consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not
be in effect and prior to the expiration of such 60-day period, the judgment shall not have
been discharged; or

(i) Pension Plans. Any of the following events shall occur with respect to any Pension
Plan and such events, either alone or together, present a reasonable likelihood of having a
Material Adverse Effect:

(i) the institution of any steps by any Obligor, or any other Person to terminate a
Pension Plan maintained or sponsored by an Obligor, or any Subsidiary of an Obligor; or

(ii) an ERISA Event; or

(j) Change of Control. There occurs any Change of Control; or

(k) Impairment of Security, etc. Any Loan Document or any Lien granted thereunder
shall (except in accordance with its terms) in whole or in part, cease to be effective or cease to
be the legally valid, binding and enforceable obligation of any Obligor party thereto, except to
the extent that the assets of the Borrower or any of its Restricted Subsidiaries which are secured
by the Liens which are terminated, no longer effective or no longer enforceable obligations of such
Credit Party are not, individually or in the aggregate, material to the business of the Borrower
and its Restricted Subsidiaries taken as a whole; the Borrower, General Partner, Petrolane or any
other Credit Party shall, directly or indirectly, contest in any manner such effectiveness,
validity, binding nature or enforceability or any Lien on property material to the business of the
Borrower and its Restricted Subsidiaries taken as a whole securing any Obligations shall, in whole
or in part, cease to be a perfected first priority Lien except as permitted by this Agreement.

9.2 Remedies. If any Event of Default occurs and is continuing, the Agent shall, at
the request of, or may, with the consent of, the Required Banks, take any or all of the following
actions:

(a) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Obligors; and

(b) exercise on behalf of itself and the Banks all rights and remedies available to it and the
Banks under the Loan Documents or applicable law;

provided, however, that upon the occurrence of any event specified in
subsection (f) or (g) of Section 9.1 (in the case of clause (i) of
subsection (g) upon the expiration of the 60-day period mentioned therein), the unpaid
principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable without further act of the Agent or any Bank.

9.3 Rights Not Exclusive. The rights provided for in this Agreement and the other
Loan Documents are cumulative and are not exclusive of any other rights, powers, privileges or
remedies provided by law or in equity, or under any other instrument, document or agreement now
existing or hereafter arising.

9.4 Application of Funds. Subject to the terms of the Collateral Agency Agreement,
after the exercise of remedies provided for in Section 9.2 (or after the Loans have
automatically become immediately due and payable), any amounts received on account of the
Obligations shall be applied by the Agent in the following order:

First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including Attorney Costs and amounts payable under Article IV)
payable to the Agent in its capacity as such;

Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal and interest) payable to the Banks (including Attorney
Costs and amounts payable under Article IV), ratably among them in proportion to the
amounts described in this clause Second payable to them;

Third, to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans, ratably among the Banks in proportion to the respective amounts described in
this clause Third payable to them;

Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans, ratably among the Banks in proportion to the respective amounts described in this clause
Fourth held by them; and

Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full, to the Borrower or as otherwise required by law.

ARTICLE X

THE AGENT

10.1 Appointment and Authorization. Each Bank hereby irrevocably appoints, designates
and authorizes the Agent to take such action on its behalf under the provisions of this Agreement
and each other Loan Document and to exercise such powers and perform such duties as are expressly
delegated to it by the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Loan Document, the Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall the Agent have or be deemed to
have any fiduciary relationship with any Bank or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Loan Document or otherwise exist against the Agent. Without limiting the generality of the
foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with
reference to the Agent is not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any applicable law. Instead, such term is used merely
as a matter of market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.

10.2 Delegation of Duties. The Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall
be entitled to advice of counsel and other consultants or experts concerning all matters pertaining
to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent
or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

10.3 Liability of Agent. No Agent-Related Person shall (a) be liable for any action
taken or omitted to be taken by any of them under or in connection with this Agreement or any other
Loan Document or the transactions contemplated hereby (except for its own gross negligence or
willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible
in any manner to any Bank or participant for any recital, statement, representation or warranty
made by any Credit Party or any officer thereof, contained herein or in any other Loan Document, or
in any certificate, report, statement or other document referred to or provided for in, or received
by the Agent under or in connection with, this Agreement or any other Loan Document, or the
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document, or for any failure of any Credit Party or any other party to any Loan Document to
perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any
obligation to any Bank or participant to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement or any other
Loan Document, or to inspect the properties, books or records of any Credit Party or any Affiliate
thereof.

10.4 Reliance by Agent. (a) The Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, communication, signature, resolution, representation,
notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
electronic mail message, statement or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice
and statements of legal counsel (including counsel to any Credit Party), independent accountants
and other experts selected by the Agent. The Agent shall be fully justified in failing or refusing
to take any action under any Loan Document unless it shall first receive such advice or concurrence
of the Required Banks as it deems appropriate and, if it so requests, it shall first be indemnified
to its satisfaction by the Banks against any and all liability and expense which may be incurred by
it by reason of taking or continuing to take any such action. The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or any other Loan
Document in accordance with a request or consent of the Required Banks (or such greater number of
Banks as may be expressly required hereby in any instance) and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Banks.

(b) For purposes of determining compliance with the conditions specified in Section
5.1, each Bank that has signed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to a Bank.

10.5 Notice of Default. The Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default, except with respect to defaults in the payment of principal,
interest and fees required to be paid to the Agent for the account of the Banks, unless the Agent
shall have received written notice from a Bank or the Borrower referring to this Agreement,
describing such Default and stating that such notice is a “notice of default.” The Agent will
notify the Banks of its receipt of any such notice. The Agent shall take such action with respect
to such Default as may be directed by the Required Banks in accordance with Article IX;
provided, however, that unless and until the Agent has received any such direction,
the Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default as it shall deem advisable or in the best interest of the Banks.

10.6 Credit Decision. Each Bank acknowledges that no Agent-Related Person has made
any representation or warranty to it, and that no act by the Agent hereafter taken, including any
consent to and acceptance of any assignment or review of the affairs of any Credit Party or any
Affiliate thereof, shall be deemed to constitute any representation or warranty by any
Agent-Related Person to any Bank as to any matter, including whether Agent-Related Persons have
disclosed material information in their possession. Each Bank represents to the Agent that it has,
independently and without reliance upon any Agent-Related Person and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness of
the Credit Parties and their respective Subsidiaries, and all applicable bank or other regulatory
laws relating to the transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to the Borrower and the other Credit Parties hereunder. Each Bank
also represents that it will, independently and without reliance upon any Agent-Related Person and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement and the other Loan Documents, and to make such investigations as it deems necessary to
inform itself as to the business, prospects, operations, property, financial and other condition
and creditworthiness of the Borrower and the other Credit Parties. Except for notices, reports and
other documents expressly required to be furnished to the Banks by the Agent herein, the Agent
shall not have any duty or responsibility to provide any Bank with any credit or other information
concerning the business, prospects, operations, property, financial and other condition or
creditworthiness of any of the Credit Parties or any of their respective Affiliates which may come
into the possession of any Agent-Related Person.

10.7 Indemnification. Whether or not the transactions contemplated hereby are
consummated, the Banks shall indemnify upon demand each Agent-Related Person (to the extent not
reimbursed by or on behalf of any Credit Party and without limiting the obligation of any Credit
Party to do so), pro rata, and hold harmless each Agent-Related Person from and against any and all
Indemnified Liabilities incurred by it; provided, however, that no Bank shall be
liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities
to the extent determined in a final, nonappealable judgment by a court of competent jurisdiction to
have resulted from such Agent-Related Person’s own gross negligence or willful misconduct;
provided, however, that no action taken in accordance with the directions of the
Required Banks shall be deemed to constitute gross negligence or willful misconduct for purposes of
this Section. Without limitation of the foregoing, each Bank shall reimburse the Agent upon demand
for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by
the Agent in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement, any other Loan
Document, or any document contemplated by or referred to herein, to the extent that the Agent is
not reimbursed for such expenses by or on behalf of the Borrower. The undertaking in this Section
shall survive termination of the Term Loan Commitments, the payment of all other Obligations and
the resignation of the Agent.

10.8 Agent in Individual Capacity. Wachovia and its Affiliates may make loans to,
issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting or other business
with each of the Credit Parties and their respective Affiliates as though Wachovia were not the
Agent hereunder and without notice to or consent of the Banks. The Banks acknowledge that,
pursuant to such activities, Wachovia or its Affiliates may receive information regarding any
Credit Party or its Affiliates (including information that may be subject to confidentiality
obligations in favor of such Credit Party or such Affiliate) and acknowledge that the Agent shall
be under no obligation to provide such information to them. With respect to its Loans, Wachovia
shall have the same rights and powers under this Agreement as any other Bank and may exercise such
rights and powers as though it were not the Agent, and the terms “Bank” and “Banks” include
Wachovia in its individual capacity.

10.9 Successor Agent. The Agent may resign as Agent upon 30 days’ notice to the
Banks. If the Agent resigns under this Agreement, the Required Banks shall appoint from among the
Banks a successor administrative agent for the Banks, which successor administrative agent shall be
consented to by the Borrower at all times other than during the existence of an Event of Default
(which consent of the Borrower shall not be unreasonably withheld or delayed). If no successor
administrative agent is appointed prior to the effective date of the resignation of the Agent, the
Agent may appoint, after consulting with the Banks and the Borrower, a successor administrative
agent from among the Banks. Upon the acceptance of its appointment as successor administrative
agent hereunder, the Person acting as such successor administrative agent shall succeed to all the
rights, powers and duties of the retiring Agent and the term “Agent” shall mean such successor
administrative agent, and the retiring Agent’s appointment, powers and duties as Agent shall be
terminated, without any other or further act or deed on the part of such retiring Agent or any
other Bank. After any retiring Agent’s resignation hereunder as Agent, the provisions of this
Article X and Sections 12.4 and 12.5 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent under this Agreement. If no
successor administrative agent has accepted appointment as Agent by the date which is 30 days
following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall
nevertheless thereupon become effective and the Banks shall perform all of the duties of the Agent
hereunder until such time, if any, as the Required Banks appoint a successor agent as provided for
above.

10.10 Agent May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to any Obligor, the Agent (irrespective of whether the principal of
any Loan shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Agent shall have made any demand on the Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

(a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of the Banks and the
Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of
the Banks and the Agent and their respective agents and counsel and all other amounts due the Banks
and the Agent under Sections 2.10, 3.8 and 11.4) allowed in such judicial
proceeding; and

(b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Bank to make such payments to the
Agent and, in the event that the Agent shall consent to the making of such payments directly to the
Banks, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of the Agent and its agents and counsel, and any other amounts due the Agent under
Sections 2.10 and 12.4.

Nothing contained herein shall be deemed to authorize the Agent to authorize or consent to or
accept or adopt on behalf of any Bank any plan of reorganization, arrangement, adjustment or
composition affecting the Obligations or the rights of any Bank or to authorize the Agent to vote
in respect of the claim of any Bank in any such proceeding.

	 	 	 	 	 	 	 
	10.11

	 	Reserved.
	 	

	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	
 
	 	 	10.12	 	 	Reserved.
	
 
	 	 	 	 	 	 

10.13 Withholding Tax. (a) (i) Each Bank that is not a “United States person”
within the meaning of Section 7701(a)(30) of the Code (a “Foreign Bank”) shall deliver to the
Agent, prior to receipt of any payment subject to withholding under the Code (or upon accepting an
assignment of an interest herein), two duly signed completed copies of either IRS Form W-8BEN or
any successor thereto (relating to such Foreign Bank and entitling it to an exemption from, or
reduction of, withholding tax on all payments to be made to such Foreign Bank by the Borrower
pursuant to this Agreement) or IRS Form W-8ECI or any successor thereto (relating to all payments
to be made to such Foreign Bank by the Borrower pursuant to this Agreement) or such other evidence
satisfactory to the Borrower and the Agent that such Foreign Bank is entitled to an exemption from,
or reduction of, U.S. withholding tax, including any exemption pursuant to Section 881(c) of the
Code. Thereafter and from time to time, each such Foreign Bank shall (A) promptly submit to the
Agent such additional duly completed and signed copies of one of such forms (or such successor
forms as shall be adopted from time to time by the relevant United States taxing authorities) as
may then be available under then current United States laws and regulations to avoid, or such
evidence as is satisfactory to the Borrower and the Agent of any available exemption from or
reduction of, United States withholding taxes in respect of all payments to be made to such Foreign
Bank by the Borrower pursuant to this Agreement, (B) promptly notify the Agent of any change in
circumstances which would modify or render invalid any claimed exemption or reduction, and (C) take
such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such
Bank, and as may be reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable laws that the Borrower make any deduction or withholding for
taxes from amounts payable to such Foreign Bank.

(ii) Each Foreign Bank, to the extent it does not act or ceases to act for its own account
with respect to any portion of any sums paid or payable to such Bank under any of the Loan
Documents (for example, in the case of a typical participation by such Bank), shall deliver to the
Agent on the date when such Foreign Bank ceases to act for its own account with respect to any
portion of any such sums paid or payable, and at such other times as may be necessary in the
determination of the Agent (in the reasonable exercise of its discretion), (A) two duly signed
completed copies of the forms or statements required to be provided by such Bank as set forth
above, to establish the portion of any such sums paid or payable with respect to which such Bank
acts for its own account that is not subject to U.S. withholding tax, and (B) two duly signed
completed copies of IRS Form W-8IMY (or any successor thereto), together with any information such
Bank chooses to transmit with such form, and any other certificate or statement of exemption
required under the Code, to establish that such Bank is not acting for its own account with respect
to a portion of any such sums payable to such Bank.

(iii) The Borrower shall not be required to pay any additional amount to any Foreign Bank
under Section 4.1 (A) with respect to any Taxes required to be deducted or withheld on the
basis of the information, certificates or statements of exemption such Bank transmits with an IRS
Form W-8BEN, W-8ECI or W-8IMY pursuant to this Section 10.13(a) or (B) if such Bank shall
have failed to satisfy the foregoing provisions of this Section 10.13(a); provided
that if such Bank shall have satisfied the requirement of this Section 10.13(a) on the date
such Bank became a Bank or ceased to act for its own account with respect to any payment under any
of the Loan Documents, nothing in this Section 10.13(a) shall relieve the Borrower of its
obligation to pay any amounts pursuant to Section 4.1 in the event that, as a result of any
change in any applicable law, treaty or governmental rule, regulation or order, or any change in
the interpretation, administration or application thereof, such Bank is no longer properly entitled
to deliver forms, certificates or other evidence at a subsequent date establishing the fact that
such Bank or other Person for the account of which such Bank receives any sums payable under any of
the Loan Documents is not subject to withholding or is subject to withholding at a reduced rate.

(iv) The Agent may, without reduction, withhold any Taxes required to be deducted and withheld
from any payment under any of the Loan Documents with respect to which the Borrower is not required
to pay additional amounts under Section 4.1.

(b) Upon the request of the Agent, each Bank that is a “United States person” within the
meaning of Section 7701(a)(30) of the Code shall deliver to the Agent two duly signed completed
copies of IRS Form W-9. If such Bank fails to deliver such forms, then the Agent may withhold from
any interest payment to such Bank an amount equivalent to the applicable back-up withholding tax
imposed by the Code, without reduction.

(c) If any Governmental Authority asserts that the Agent did not properly withhold or backup
withhold, as the case may be, any tax or other amount from payments made to or for the account of
any Bank, such Bank shall indemnify the Agent therefor, including all penalties and interest, any
taxes imposed by any jurisdiction on the amounts payable to the Agent under this Section, and costs
and expenses (including Attorney Costs) of the Agent. The obligation of the Banks under this
Section shall survive the termination of the Term Loan Commitments, repayment of all other
Obligations hereunder and the resignation of the Agent.

ARTICLE XI

GUARANTEE

11.1 Each Guaranteed Obligation. (a) Each Guarantor, jointly and severally,
irrevocably and unconditionally guarantees the Obligations; provided, however, that
each Guarantor shall be liable under this Agreement for the maximum amount of such liability that
can be hereby incurred without rendering this Agreement, as it relates to such Guarantor, voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any
greater amount. Each Guarantor understands, agrees and confirms that the Agent may enforce this
Article XI up to the full amount of the Obligations against each Guarantor, subject as
aforesaid, without proceeding against the Borrower, against any security for the Obligations, or
under any other Guaranty covering the Obligations.

(b) This Article XI shall be subject to the terms of the Collateral Agency Agreement.

11.2 Obligations Exclusive. The liability of each Guarantor hereunder is exclusive and
independent of any security for or other Guaranty Obligation of the Obligations whether executed by
such Guarantor, any other Guarantor, any other guarantor or by any other party, and the liability
of each Guarantor hereunder shall not be affected or impaired by (a) any direction as to
application of payment by the Borrower or by any other party, or (b) any other continuing or other
Guaranty, undertaking or maximum liability of a guarantor or of any other party as to the
Indebtedness of the Borrower, or (c) any payment on or in reduction of any such other Guaranty
Obligation or undertaking except to the extent such payment is applied to the Obligations or such
reduction results from application of a payment to the Obligations, or (d) any dissolution,
termination or increase, decrease or change in personnel by the Borrower, or (e) any payment made
to any Bank or the Agent on the amounts which the Banks or the Agent repay the Borrower pursuant to
a court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief
proceeding, and each Guarantor waives any right to the deferral or modification of its obligations
hereunder by reason of any such proceeding.

11.3 Obligations Independent. The obligations of each Guarantor hereunder are
independent of the obligations of any other Guarantor, any other guarantor or the Borrower, and a
separate action or actions may be brought and prosecuted against each Guarantor whether or not
action is brought against any other Guarantor, any other guarantor or the Borrower and whether or
not any other Guarantor, any other guarantor or the Borrower be joined in any such action or
actions. Each Guarantor waives, to the fullest extent permitted by law, the benefit of any statute
of limitations affecting its liability hereunder or the enforcement thereof. Any payment by the
Borrower or other circumstance which operates to toll any statute of limitations as to the Borrower
shall operate to toll the statute of limitations as to each Guarantor.

11.4 Waiver of Notice. Each Guarantor hereby waives notice of acceptance of this Agreement
and notice of any liability to which it may apply, and waives promptness, diligence, presentment,
demand of payment, protest, notice of dishonor or nonpayment of any such liabilities, suit or
taking of other action by the Agent or any Bank against, and any other notice to, any party liable
thereon (including such Guarantor or any other guarantor).

11.5 Guarantee of Payment. This Agreement is a guarantee of payment and not of
collection. The Agent or any Bank may at any time and from time to time without the consent of, or
notice to, any Guarantor, without incurring responsibility to such Guarantor, without impairing or
releasing the obligations of such Guarantor hereunder, upon or without any terms or conditions and
in whole or in part:

	 	(i)	 	change the manner, place or terms of payment of, and/or change or extend the
time of payment of, renew or alter, any of the Obligations, any security therefor, or
any liability incurred directly or indirectly in respect thereof, and the guarantee
made in this Agreement shall apply to the Obligations as so changed, extended, renewed
or altered;

	 	(ii)	 	sell, exchange, release, surrender, realize upon or otherwise deal with, in any
manner and in any order, any property by whomsoever at any time pledged or mortgaged to
secure, or howsoever securing, the Obligations or any liabilities (including any of
those hereunder) incurred directly or indirectly in respect thereof or hereof, and/or
any offset thereagainst;

	 	(iii)	 	exercise or refrain from exercising any rights against the Borrower or any
Guarantor or others or otherwise act or refrain from acting;

	 	(iv)	 	settle or compromise any of the Obligations, any security therefor or any
liability (including any of those hereunder) incurred directly or indirectly in respect
thereof or hereof, and may subordinate the payment of all or any part thereof to the
payment of any liability (whether due or not) of the Borrower to creditors of the
Borrower;

	 	(v)	 	apply any sums by whomsoever paid or howsoever realized to any liability or
liabilities of the Borrower to the Banks regardless of what liabilities of the Borrower
remain unpaid;

	 	(vi)	 	consent to or waive any breach of, or any act, omission or default under, this
Agreement, any of the First Mortgage Notes, the First Mortgage Note Agreements, the
Bank Notes, the Parity Debt, the Parity Debt Agreements, the Security Documents, the
other Financing Agreements (as such terms not defined herein are defined in the
Collateral Agency Agreement) or any of the instruments or agreements referred to
therein, or otherwise amend, modify or supplement this Agreement, the First Mortgage
Notes, the Note Agreements, the Bank Notes, the Parity Debt, the Parity Debt
Agreements, the Security Documents, the other Financing Agreements or any of such other
instruments or agreements; and/or

	 	(vii)	 	fail to perfect any Lien granted to the Agent or to or for the benefit of any
of the Banks to secure any of the Obligations.

11.6 Obligations Unconditional. (a) The obligations of each Guarantor under this
Agreement are absolute and unconditional and shall remain in full force and effect without regard
to, and shall not be released, suspended, discharged, terminated (except in accordance with the
terms hereof) or otherwise affected by, any circumstance or occurrence whatsoever, including
without limitation: (i) any action or inaction by the Agent or the Banks as contemplated in
Section 11.5; (ii) any invalidity, irregularity or unenforceability of all or part of the
Obligations or of any security therefor; or (iii) to the extent permitted by applicable law, any
other act or circumstance that might otherwise constitute a legal or equitable discharge or defense
of a surety or a guarantor. The obligations of each Guarantor hereunder are primary obligations of
each Guarantor.

(b) The obligations of each Guarantor hereunder shall be automatically reinstated if and to
the extent that for any reason any payment by or on behalf of the Borrower in respect of the
Obligations is rescinded or must be otherwise returned by any holder of any of the Obligations,
whether as a result of any proceedings in bankruptcy or reorganization or otherwise.

11.7 Continuing Guarantee. This Agreement is a continuing one and all liabilities to which
it applies (or may apply) under the terms hereof shall be conclusively presumed to have been
created in reliance hereon. No failure or delay on the part of the Agent or any Bank in exercising
any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and remedies herein
expressly specified are cumulative and not exclusive of any rights or remedies which the Agent or
any Bank would otherwise have. No notice to or demand on any Guarantor in any case shall (i)
entitle such Guarantor to any other further notice or demand in similar or other circumstances
except for any notice or demand required hereunder or under any Subsidiary Security Agreement
entered into by such Guarantor or (ii) constitute a waiver of the rights of the Agent or any Bank
to any other or further action in any circumstances without notice or demand. It is not necessary
for the Agent or any Bank to inquire into the capacity or powers of the officers, directors,
partners or agents acting or purporting to act on behalf of any Guarantor or the Borrower, and any
Obligations made or created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder.

11.8 Subordination. Any Indebtedness of the Borrower now or hereafter held by any
Guarantor, whether arising by subrogation, contribution or otherwise, is hereby subordinated to the
Obligations as provided for below; and such Indebtedness of the Borrower to any Guarantor, if the
Agent, after an Event of Default has occurred and is continuing, so requests, shall be collected,
enforced and received by such Guarantor as trustee for the Banks and be paid over to the Agent on
account of the Obligations, but without affecting or impairing in any manner the liability of such
Guarantor under the other provisions of this Agreement. Prior to the transfer to any non-Affiliate
by any Guarantor of any note or negotiable instrument evidencing any Indebtedness of the Borrower
to such Guarantor, such Guarantor shall mark such note or negotiable instrument with a legend,
acceptable to the Agent, that the same is subject to this subordination.

11.9 Exhaustion of Remedies. (a) Each Guarantor waives any right (except as shall be
required by applicable statute and cannot be waived) to require the Agent or the Banks to (i)
proceed against the Borrower, any other Guarantor or any other Person, (ii) proceed against or
exhaust any security held from the Borrower, any other Guarantor or any other Person or (iii)
pursue any other remedy in the Agent’s or the Banks’ power whatsoever. Each Guarantor waives any
defense based on or arising out of any defense of the Borrower, any other Guarantor or any other
Person other than payment in full of the Obligations, including without limitation any defense
based on or arising out of the disability of the Borrower, any other Guarantor or any other party,
or the unenforceability of the Obligations or any part thereof from any cause, or the cessation
from any cause of the liability of the Borrower other than payment in full of the Obligations. The
Agent or the Collateral Agent, as the case may be, on behalf of the Banks may, at its election,
foreclose on any security held by the Agent, the Collateral Agent or the Banks by one or more
judicial or nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable (to the extent such sale is permitted by applicable law), or exercise any other right or
remedy the Agent, the Collateral Agent or the Banks may have against the Borrower or any other
Person, or any security, without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Obligations have been paid. Each Guarantor waives any defense
arising out of any such election by the Agent, the Collateral Agent or the Banks, even though such
election operates to impair or extinguish any right of reimbursement or subrogation or other right
or remedy of such Guarantor against the Borrower or any other Person or any security.

(b) Each Guarantor waives all presentments, demands for performance, protests and notices,
including without limitation notices of nonperformance, notice of protest, notices of dishonor,
notices of acceptance of this Agreement, and notices of the existence, creation or incurring of new
or additional Indebtedness. Each Guarantor assumes all responsibility for being and keeping itself
informed of the Borrower’s financial condition and assets, and of all other circumstances bearing
upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks which
such Guarantor assumes and incurs hereunder, and agrees that the Agent and the Banks shall have no
duty to advise any Guarantor of information known to them regarding such circumstances or risks.

(c) Each Guarantor understands, is aware and hereby acknowledges that to the extent the
Obligations are secured by real property located in the State of California, such Guarantor shall
be liable for the full amount of its liability hereunder notwithstanding foreclosure on such real
property by trustee sale or any other reason impairing each Guarantor’s or the Agent’s or any
Bank’s right to proceed against the Borrower. Each Guarantor hereby waives, to the fullest extent
permitted by law, all rights and benefits under Section 2809 of the California Civil Code
purporting to reduce a guarantor’s obligation in proportion to the principal obligation. Each
Guarantor hereby waives all rights and benefits under Section 580a of the California Code of Civil
Procedure purporting to limit the amount of any deficiency judgment which might be recoverable
following the occurrence of a trustee’s sale under a deed of trust and all rights and benefits
under Section 580b of the California Code of Civil Procedure stating that no deficiency judgment
may be recovered on a real property purchase money obligation. Each Guarantor further understands,
is aware and hereby acknowledges that if the Agent (or the Collateral Agent) on behalf of the Banks
elects to nonjudicially foreclose on any real property security located in the State of California,
any right of subrogation of the Guarantors against the Agent, the Collateral Agent or the Banks may
be impaired or extinguished and that as a result of such impairment or extinguishment of
subrogation rights, each Guarantor will have a defense to a deficiency judgment arising out of the
operation of (i) Section 580d of the California Code of Civil Procedure which states that no
deficiency judgment may be recovered on a note secured by a deed of trust on real property in case
such real property is sold under the power of sale contained in such deed of trust, and (ii)
related principles of estoppel. To the fullest extent permitted by law, each Guarantor hereby
waives all rights and benefits and any defense arising out of the operation of Section 580d of the
California Code of Civil Procedure and related principles of estoppel, even though such election
operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy
of such Guarantor against the Borrower or any other party or any security. In addition, each
Guarantor hereby waives, to the fullest extent permitted by applicable law and without limiting the
generality of the foregoing or any other provision hereof, all rights and benefits which might
otherwise be available to such Guarantor under Section 726 of the California Code of Civil
Procedure and all rights and benefits which might otherwise be available to such Guarantor under
California Civil Code Sections 2809, 2810, 2815, 2819, 2821, 2839, 2845, 2848, 2849, 2850, 2899,
3275 and 3433 (and any analogous or successor provisions to such Sections). Furthermore, each
Guarantor hereby waives, to the fullest extent permitted by law, the benefits of the provisions of
Nevada Revised Statutes §§ 40.430 et seq., 40.451 et seq., and
40.465 et seq. (and any analogous or successor provisions to such Sections).

(d) Each Guarantor agrees that, as between such Guarantor and the Agent and Banks, the
Obligations may be declared to be forthwith due and payable (and shall be deemed to have become
automatically due and payable) in accordance with the terms thereof for purposes of Section
11.1 hereof notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing such Obligations from becoming automatically due and payable) as against
the Borrower and that, in the event of such declaration (or such Obligations being deemed to have
become automatically due and payable) such Obligations (whether or not due and payable by the
Borrower) shall forthwith become due and payable by each Guarantor for purposes of Section
11.1.

11.10 Reinstatement. If claim is ever made upon the Agent or any Bank for repayment or
recovery of any amount or amounts received in payment or on account of any of the Obligations and
any of the aforesaid payees repays all or part of said amount by reason of (a) any judgment, decree
or order of any court or administrative body having jurisdiction over such payee or any of its
property or (b) any settlement or compromise of any such claim effected by such payee with any such
claimant (including the Borrower), then and in such event each Guarantor agrees that any such
judgment, decree, order, settlement or compromise shall be binding upon such Guarantor,
notwithstanding any revocation hereof or other instrument evidencing any liability of the Borrower,
and such Guarantor shall be and remain liable to the aforesaid payees hereunder for the amount so
repaid or recovered to the same extent as if such amount had never originally been received by any
such payee.

ARTICLE XII

MISCELLANEOUS

12.1 Amendments and Waivers. No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by any Obligor or any other
Credit Party therefrom, shall be effective unless in writing signed by the Required Banks and the
Borrower, and acknowledged by the Agent, and each such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall, unless in writing and signed by
all the Banks and the Borrower do any of the following:

(a) waive any condition set forth in subsection (a), (b), (c)(i),
(d), (e), (f), (h),(i), (j), (k),
(l), (m), (n) or (o) of Section 5.1 without the written
consent of each Bank;

(b) increase or extend the Term Loan Commitment of any Bank (or reinstate any Term Loan
Commitment terminated pursuant to Section 9.2);

(c) postpone or delay any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees or other amounts due to the Banks (or any of them) hereunder
or under any other Loan Document;

(d) reduce the principal of, or the rate of interest specified herein on any Loan, or
(subject to clause (iv) below) any fees or other amounts payable hereunder or under any
other Loan Document;

(e) change the definition of “Required Banks” or change the percentage of the Term Loan
Commitments or of the aggregate unpaid principal amount of the Loans which is required for the
Banks or any of them to take any action hereunder; or

(f) amend this Section, or Section 2.14, or any provision herein providing for consent
or other action by all Banks; or

(g) release all or substantially all the collateral securing the Obligations;

and, provided, further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the Agent in addition to the Required Banks or all the Banks, as the case may
be, affect the rights or duties of the Agent under this Agreement or any other Loan Document; and
(ii) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing
executed by the parties thereto.

In connection with a proposed merger, consolidation or sale of all or substantially all of the
assets of the Borrower in accordance with Section 8.8(a)(iii) or (b)(iii) to a
corporation, the parties agree (i) to effect, simultaneously with such transaction, all necessary
and appropriate modifications to the terms and conditions of this Agreement and the other Loan
Documents and License Agreements to which it is a party (including without limitation the ability
of the Borrower to make payments under Section 8.5, taking into account the effect of any
change in the tax status of the Borrower on its financial condition and the applicable financial
covenants) to reflect the corporate existence of such successor corporation and any other matters
in form acceptable to the Required Banks, provided, that such modified terms and conditions
convey to the parties substantially the same rights and obligations provided under the Loan
Documents and License Agreements to which it is a party immediately prior to such transaction, and
(ii) that any Default described in Section 9.1(j) which would result from such transaction
shall not be asserted by the Agent or any Bank if after giving effect to such transaction UGI shall
own directly or indirectly at least 51% of the voting shares of the corporation that is the
successor to the Borrower.

In the event a Bank or Participant (as hereinafter defined) shall refuse to enter into or consent
to any amendment, waiver or other modification of any provision of this Agreement or any other Loan
Document, and such Bank’s or Participant’s consent is necessary for such amendment, waiver or
modification to become effective, the Borrower may pay Obligations outstanding to any such
nonconsenting Bank or to any Originating Bank having participated interests to any such
nonconsenting Participant and reduce or eliminate any such Bank’s Term Loan Commitment;
provided, that the Borrower may take such action only if Banks representing at least 80% of
the outstanding Term Loan Commitments necessary therefor have entered into or consented to such
amendment, waiver or modification and no Default or Event of Default then exists.

12.2 Notices and Other Communications; Facsimile Copies. (a) General.
Unless otherwise expressly provided herein, all notices and other communications provided for
hereunder shall be in writing (including by facsimile transmission). All such written notices
shall be mailed, faxed or delivered to the applicable address, facsimile number or (subject to
subsection (c) below) electronic mail address, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the applicable telephone
number, if to the Borrower, the Agent or any Bank, to the address, facsimile number, electronic
mail address or telephone number specified for such Person on Schedule 12.2 or to such
other address, facsimile number, electronic mail address or telephone number as shall be designated
by such party in a notice to the other parties. All such notices and other communications shall be
deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party
hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the
relevant party hereto; (B) if delivered by mail, four Business Days after deposit in the mails,
postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by
telephone; and (D) if delivered by electronic mail (which form of delivery is subject to the
provisions of subsection (c) below), when delivered; provided, however,
that notices and other communications to the Agent pursuant to Article II shall not be
effective until actually received by such Person. In no event shall a voicemail message be
effective as a notice, communication or confirmation hereunder.

(b) Effectiveness of Facsimile Documents and Signatures. Loan Documents may be
transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures
shall, subject to applicable law, have the same force and effect as manually-signed originals and
shall be binding on all Credit Parties, the Agent and the Banks. The Agent may also require that
any such documents and signatures be confirmed by a manually-signed original thereof;
provided, however, that the failure to request or deliver the same shall not limit
the effectiveness of any facsimile document or signature.

(c) Limited Use of Electronic Mail. Electronic mail and Internet and intranet
websites may be used only to distribute routine communications, such as financial statements and
other information as provided in Section 7.1, and to distribute Loan Documents for
execution by the parties thereto, and may not be used for any other purpose.

(d) Reliance by Agent and Banks. The Agent and the Banks shall be entitled to rely
and act upon any notices (including telephonic Notices of Borrowing) purportedly given by or on
behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were
incomplete or were not preceded or followed by any other form of notice specified herein, or (ii)
the terms thereof, as understood by the recipient, varied from any confirmation thereof. The
Borrower shall indemnify each Agent-Related Person and each Bank from all losses, costs, expenses
and liabilities resulting from the reliance by such Person on each notice purportedly given by or
on behalf of the Borrower. All telephonic notices to and other communications with the Agent may
be recorded by the Agent, and each of the parties hereto hereby consents to such recording.

12.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Agent or any Bank, any right, remedy, power or privilege hereunder,
shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege.

12.4 Costs and Expenses. The Borrower shall:

(a) whether or not the transactions contemplated hereby are consummated, pay or reimburse
Wachovia (including in its capacity as Agent) within five Business Days after demand and receipt by
the Borrower of reasonable supporting documentation (subject to Section 5.1(d)) for all
reasonable costs and expenses incurred by Wachovia (including in its capacity as Agent) in
connection with the development, preparation, delivery, administration and execution of this
Agreement, any Loan Document and any other documents prepared in connection herewith or therewith,
and the consummation of the transactions contemplated hereby and thereby, including Attorney Costs
(excluding allocated costs of internal legal counsel) incurred by Wachovia (including in its
capacity as Agent) with respect thereto; and

(b) pay or reimburse the Agent within five Business Days after demand and receipt by the
Borrower of reasonable supporting documentation for all reasonable costs and expenses incurred by
the Agent in connection with any amendment, supplement, waiver or modification to (in each case,
whether or not consummated), this Agreement, any Loan Document and any other documents prepared in
connection herewith or therewith, and the consummation of the transactions contemplated hereby and
thereby, including Attorney Costs incurred by the Agent with respect thereto (provided,
that the fees of any law firm or other external counsel, and the allocated costs of internal legal
services, shall not both be reimbursed with respect to any amendment, supplement, waiver or
modification relating to the same or any substantially similar matter); and

(c) pay or reimburse the Agent and each Bank within five Business Days after demand and
receipt by the Borrower of reasonable supporting documentation (subject to Section 5.1(g))
for all reasonable costs and expenses (including Attorney Costs) incurred by them in connection
with the enforcement, attempted enforcement, or preservation of any rights or remedies under this
Agreement or any other Loan Document during the existence of an Event of Default or after
acceleration of the Loans (including in connection with any “workout” or restructuring regarding
the Loans, and including in any Insolvency Proceeding or appellate proceeding).

The foregoing costs and expenses shall include all search, filing, recording, title insurance and
fees and taxes related thereto incurred by the Agent, and, with respect to those costs and expenses
referred to in Section 12.4(b) or 12.4(c) above, the reasonable cost of independent
public accountants, appraisers and other outside experts retained by the Agent. The agreements in
this Section shall survive the termination of the Term Loan Commitments and repayment of all other
Obligations.

12.5 Indemnity. Whether or not the transactions contemplated hereby are consummated,
the Obligors shall indemnify and hold harmless each Agent-Related Person, the Collateral Agent,
each Bank and their respective affiliates, directors, officers, employees and agents (collectively,
the “Indemnified Parties”) from and against any and all losses, claims, damages (other than
consequential or exemplary damages), liabilities and reasonable out-of-pocket expenses (including,
without limitation, reasonable fees and disbursements of counsel, amounts paid in settlement and
court costs) (collectively, the “Indemnified Liabilities”) which may be incurred by any such
Indemnified Party as a result of a claim by a third party or asserted by a third party against any
such Indemnified Party, in each case, in connection with or arising out of or in any way relating
to or resulting from any transaction or proposed transaction (whether or not consummated)
contemplated to be financed with the proceeds of any Loan or other financial accommodation
contemplated hereby, and the Obligors hereby agree to reimburse each such Indemnified Party for any
Attorneys’ Costs or other out-of-pocket expenses incurred in connection with investigating,
defending or participating in any action or proceeding (whether or not such Indemnified Party is a
party to such action or proceeding) out of which any such losses, claims, damages, liabilities or
expenses may arise; provided, however, that the Obligors shall not be required to
reimburse the expenses of more than one counsel for all Indemnified Parties except to the extent
that different Indemnified Parties shall have conflicting interests. Notwithstanding anything
herein to the contrary, the Obligors shall not be liable or responsible for losses, claims,
damages, costs and expenses incurred by any Indemnified Party arising out of or relating to such
Indemnified Party’s own gross negligence or willful misconduct. If for any reason the
indemnification provided for herein is unavailable to any Indemnified Party or insufficient to hold
it harmless as and to the extent contemplated hereby, then the Obligors hereby agree to contribute
to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage,
liability or expense in such proportion as is appropriate to reflect the relative benefits received
by the Obligors, on the one hand, and such Indemnified Party, on the other hand, and also the
respective fault of the Obligors, on the one hand, and such Indemnified Party, on the other hand,
as the case may be, as well as any other relevant equitable considerations. This Section
12.5 shall survive the termination of this Agreement.

12.6 Liability. (a) The liability of the Obligors hereunder and under the Loan
Documents shall be absolute, unconditional and irrevocable irrespective of:

(i) any lack of validity, legality or enforceability of this Agreement, any Note or any other
Loan Document;

(ii) the failure of any Bank

(A) to enforce any right or remedy against any other Person (including
any guarantor) under the provisions of this Agreement, the Note, any other
Loan Document or otherwise, or

(B) to exercise any right or remedy against any guarantor of, or
collateral securing, any Obligations;

(iii) any change in the time, manner or place of payment of, or in any other term of, all or
any of the Obligations, or any other extension, compromise or renewal of any Obligations;

(iv) any reduction, limitation, impairment or termination of any Obligations with respect to
any other Credit Party for any reason including any claim of waiver, release, surrender, alteration
or compromise, and shall not be subject to (and the Borrower hereby waives any right to or claim
of) any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other
event or occurrence affecting, any Obligations with respect to any other Credit Party;

(v) any addition, exchange, release, surrender or nonperfection of any collateral, or any
amendment to or waiver or release or addition of, or consent to departure from, any guaranty, held
by any Bank securing any of the Obligations; or

(vi) any other circumstance which might otherwise constitute a defense available to, or a
legal or equitable discharge of, any other Credit Party, any surety or any guarantor.

The Borrower agrees that its liability hereunder shall continue to be effective or be reinstated,
as the case may be, if at any time any payment (in whole or in part) of any of the Obligations is
rescinded or must be restored by any Bank, upon the insolvency, bankruptcy or reorganization of the
Borrower as though such payment had not been made.

The Obligors hereby expressly waive: (a) notice of the Banks’ acceptance of this Agreement; (b)
notice of the existence or creation or non-payment of all or any of the Obligations; (c)
presentment, demand, notice of dishonor, protest, and all other notices whatsoever other than
notices expressly provided for in this Agreement and (d) all diligence in collection or protection
of or realization upon the Obligations or any thereof any obligation hereunder, or any security for
or guaranty of any of the foregoing.

No delay on any of the Banks’ part in the exercise of any right or remedy shall operate as a waiver
thereof, and no single or partial exercise by any of the Banks of any right or remedy, shall
preclude other or further exercise thereof or the exercise of any other right or remedy. No action
of any of the Banks permitted hereunder shall in any way affect or impair any such Banks’ rights or
Obligors’ obligations under this Agreement.

Each Obligor hereby represents and warrants to each of the Banks that it now has and will continue
to have independent means of obtaining information concerning the other Obligors’ affairs,
financial condition and business. The Banks shall not have any duty or responsibility to provide
any Obligor with any credit or other information concerning the Obligors’ Subsidiaries’ affairs,
financial condition or business which may come into the Banks’ possession. Each of the Obligors
agrees that any action or notice which is required or authorized to be taken or given or received
under this Agreement or any of the Loan Documents shall be taken, given or received by the Borrower
acting on behalf of the other Credit Parties (and not by Petrolane or the General Partner), and the
other Credit Parties agree to be bound by, and authorizes the Agent and each Bank to rely upon, any
such action or notice as if fully authorized by each of the Obligors.

12.7 Payments Set Aside. To the extent that the Borrower makes a payment to the Agent
or the Banks, or the Agent or the Banks exercise their right of set-off, and such payment or the
proceeds of such set-off or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any settlement entered
into by the Agent or such Bank in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any Insolvency Proceeding or otherwise, then (a) to the extent of such
recovery the obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such set-off had not
occurred, and (b) each Bank severally agrees to pay to the Agent upon demand its pro rata share of
any amount so recovered from or repaid by the Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from
time to time in effect.

12.8 Successors and Assigns. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns, except
that no Obligors may assign or transfer any of its rights or obligations under this Agreement
without the prior written consent of the Agent and each Bank. Any attempted assignment in
violation of this provision shall be null and void.

12.9 Assignments, Participations. etc. (a) Any Bank may, with the written consent of
the Borrower and the Agent, which consent of the Borrower shall not be unreasonably withheld, at
any time assign and delegate to one or more Eligible Assignees (provided, that no written
consent of the Borrower or the Agent shall be required in connection with any assignment and
delegation by a Bank to (x) an Eligible Assignee that is an Affiliate of such Bank or (y) another
Bank (each an “Assignee”)) all, or any ratable part of all, of the Loans and the other rights and
obligations of such Bank hereunder, in a minimum amount of $5,000,000; provided,
however, that the Borrower and the Agent may continue to deal solely and directly with such
Bank in connection with the interest so assigned to an Assignee until (i) written notice of such
assignment, together with payment instructions, addresses and related information with respect to
the Assignee, shall have been given to the Borrower and the Agent by such Bank and the Assignee;
(ii) such Bank and its Assignee shall have delivered to the Borrower and the Agent an Assignment
and Acceptance in the form of Exhibit F (an “Assignment and Acceptance”) and (iii) the
assignor Bank or Assignee has paid to the Agent a processing fee in the amount of $4,000.

(b) From and after the date that the Agent notifies the assignor Bank that it has received
(and the Borrower and the Agent have provided their consent with respect to) an executed Assignment
and Acceptance and payment of the above-referenced processing fee, (i) the Assignee thereunder
shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned
to it pursuant to such Assignment and Acceptance, shall have the rights and obligations of a Bank
under the Loan Documents, and (ii) the assignor Bank shall, to the extent that rights and
obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its obligations under the
Loan Documents (and, in the case of an Assignment and Acceptance covering all of the assigning
Bank’s rights and obligations under this Agreement, such Bank shall cease to be a party hereto but
shall continue to be entitled to the benefits of Sections 4.1, 4.3, 4.4,
12.4 and 12.5 with respect to facts and circumstances occurring prior to the
effective date of such assignment).

(c) Within five Business Days after its receipt of notice by the Agent that it has received an
executed Assignment and Acceptance and payment of the processing fee (and provided, that
the Borrower consents to such assignment in accordance with Section 12.9(a)), the Borrower
shall, if requested by the Assignee or the assignor Bank thereunder, execute and deliver to the
Agent new Notes evidencing such Assignee’s assigned Loans and, if the assignor Bank has retained a
portion of its Loans, replacement Notes in the principal amount of the Loans retained by the
assignor Bank (such Notes to be in exchange for, but not in payment of, the Notes held by such
Bank) and the assignor Bank shall deliver its Note or Notes marked “exchanged” or “cancelled,” as
applicable, to the Agent. Immediately upon payment of the processing fee payment under the
Assignment and Acceptance and the satisfaction of the other conditions set forth in Section
12.9(a), this Agreement shall be deemed to be amended to the extent, but only to the extent,
necessary to reflect the addition of the Assignee.

(d) The Agent shall maintain at its address referred to in Schedule 12.2 a copy of
each Assignment and Acceptance delivered to and accepted by it and a register for the recordation
of the names and addresses of the Banks, and principal amount of the Loans owing to, each Bank from
time to time (the “Register”). The entries in the Register shall be conclusive and binding for all
purposes, absent manifest error, and the Borrower, the Agent and the Banks may treat each Person
whose name is recorded in the Register as a Bank hereunder for all purposes of this Agreement. The
Register shall be available for inspection by the Borrower or any Bank at any reasonable time and
from time to time upon reasonable prior notice. Any assignment of any Loan or other obligations
shall be effective only upon an entry with respect thereto being made in the Register.

(e) Any Bank may at any time sell to one or more commercial banks or other Persons not
Affiliates of the Borrower (a “Participant”) participating interests in any Loans and the other
interests of that Bank (the “Originating Bank”) hereunder and under the other Loan Documents;
provided, however, that (i) the Originating Bank’s obligations under this Agreement
shall remain unchanged, (ii) the Originating Bank shall remain solely responsible for the
performance of such obligations, (iii) the Borrower, the Agent and the other Banks shall continue
to deal solely and directly with the Originating Bank in connection with the Originating Bank’s
rights and obligations under this Agreement and the other Loan Documents. Any agreement or
instrument pursuant to which a Bank sells such a participation shall provide that such Bank shall
retain the sole right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement or instrument may
provide that such Bank will not, without the consent of the Participant, agree to any amendment,
waiver or other modification described in the first proviso to Section 12.1 that directly
affects such Participant. In the case of any such participation, the Participant shall be entitled
to the benefit of Sections 4.1, 4.3, 4.4 and 12.5 as though it were
also a Bank hereunder (but not in any greater amounts than would have been payable to the Bank
selling the participation if no participation were sold), and not have any rights under this
Agreement, or any of the other Loan Documents, and all amounts payable by the Borrower hereunder
shall be determined as if such Bank had not sold such participation; except that, if amounts
outstanding under this Agreement are due and unpaid, or shall have been declared or shall have
become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed
to have the right of set-off in respect of its participating interest in amounts owing under this
Agreement to the same extent as if the amount of its participating interest were owing directly to
it as a Bank under this Agreement, provided such Participant agrees to be subject to
Section 2.14 as though it were a Bank.

(f) Nothing contained in this Agreement shall prevent a Bank from pledging its interest in its
Loans to a Federal Reserve Bank in the Federal Reserve System of the United States in accordance
with applicable law.

(g) After payment in full of, and satisfaction of all Obligations under, any Note, the Bank or
other party holding such Note agrees to promptly return such Note marked “Paid in Full” to the
Borrower.

(h) Notwithstanding the foregoing provisions of this Section 12.9, no assignment or
participation may be made if such assignment or participation involves, or could involve, the use
of assets that constitute, or may be deemed under ERISA, the Code or any other applicable law, or
any ruling or regulation issued thereunder, or any court decision, to constitute the assets of any
employee benefit plan (as defined in section 3(3) of ERISA) or any plan as defined in section
4975(e)(1) of the Code).

12.10 Confidentiality. (a) Each of the Agent and the Banks agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (i)
to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed to keep such
Information confidential); (ii) to the extent requested by any regulatory authority; (iii) to the
extent required by applicable laws or regulations or by any subpoena or similar legal process; (iv)
to any other party to this Agreement; (v) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement of rights
hereunder; (vi) subject to an agreement containing provisions substantially the same as those of
this Section, to (x) any Eligible Assignee of or Participant in, or any prospective Eligible
Assignee of or Participant in, any of its rights or obligations under this Agreement or (y) any
direct or indirect contractual counterparty or prospective counterparty (or such contractual
counterparty’s or prospective counterparty’s professional advisor) to any credit derivative
transaction relating to obligations of the Credit Parties; (vii) with the written consent of the
Borrower; (viii) to the extent such Information (ix) becomes publicly available other than as a
result of a breach of this Section or (x) becomes available to the Agent or any Bank on a
nonconfidential basis from a source other than a Credit Party; or (xi) to the National Association
of Insurance Commissioners or any other similar organization.(b) The Agent and the Banks may
disclose the existence of this Agreement and information about this Agreement to market data
collectors, similar service providers to the lending industry, and service providers to the Agent
and the Banks in connection with the administration and management of this Agreement, the other
Loan Documents and the Loans; provided, however, that information disclosed by the
Agent or any Bank to any such market data collectors or similar service providers shall be of a
type generally provided to such Persons in other transactions. For the purposes of this
Section 12.10, “Information” means all information received from any Credit Party relating
to any Credit Party or its business. Notwithstanding anything herein to the contrary, any party
subject to confidentiality obligations under this Agreement or under any other related document
(and any employee, representative or other agent of such party) may disclose to any and all
persons, without limitation of any kind, the U.S. federal income tax treatment of the U.S. federal
income tax structure of the transactions contemplated herein and all materials of any kind
(including opinions or other tax analyses) that are provided to it relating to such tax treatment
and tax structure.

(c) The Borrower acknowledges that one or more of the Banks may treat its Loans as part of a
transaction that is subject to Treasury Regulation Section 1.6011-4 or Section 301.6112-1, and the
Agent and such Bank or Banks, as applicable, may (i) maintain such lists or other records as they
may determine are required by such Treasury Regulations and (ii) file such IRS forms as they may
determine are required by such Treasury Regulations with written notice by the party making such
filing to the Borrower.

(d) Any Person required to maintain the confidentiality of Information as provided in this
Section 12.10 shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information. Each of the Agent, the Banks and the
Participants shall promptly notify the Borrower of its receipt of any subpoena or similar process
or authority, unless prohibited therefrom by the issuing Person.

12.11 Set-off. In addition to any rights and remedies of the Banks provided by law,
upon the occurrence and during the continuance of any Event of Default, each Bank is authorized at
any time and from time to time, without prior notice to the Borrower or any other Credit Party, any
such notice being waived by the Borrower (on their own behalf and on behalf of each Credit Party)
to the fullest extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held by, and other indebtedness at any
time owing by, such Bank to or for the credit or the account of the respective Credit Party against
any and all Obligations owing to such Bank hereunder or under any other Loan Document, now or
hereafter existing, irrespective of whether or not the Agent or such Bank shall have made demand
under this Agreement or any other Loan Document and although such Obligations may be contingent or
unmatured or denominated in a currency different from that of the applicable deposit or
indebtedness. Each Bank agrees promptly to notify the Borrower and the Agent after any such
set-off and application made by such Bank; provided, however, that the failure to
give such notice shall not affect the validity of such set-off and application.

12.12 Notification of Addresses; etc. Each Bank shall notify the Agent in writing of
any changes in the address to which notices to the Bank should be directed, of addresses of any
Lending Office, of payment instructions in respect of all payments to be made to it hereunder and
of such other administrative information as the Agent shall reasonably request.

12.13 Counterparts. This Agreement may be executed in any number of separate
counterparts, each of which, when so executed, shall be deemed an original, and all of said
counterparts taken together shall be deemed to constitute but one and the same instrument.

12.14 Severability. The illegality or unenforceability of any provision of this
Agreement or any instrument or agreement required hereunder shall not in any way affect or impair
the legality or enforceability of the remaining provisions of this Agreement or any instrument or
agreement required hereunder.

12.15 No Third Parties Benefited. This Agreement is made and entered into for the
sole protection and legal benefit of the Obligors, the Banks, the Agent and the Agent-Related
Persons, and their permitted successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Agreement or any of the other Loan Documents.

12.16 Governing Law and Jurisdiction. (a) THIS AGREEMENT AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK; PROVIDED,
THAT THE AGENT AND THE BANKS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE OBLIGORS, THE
AGENT AND THE BANKS EACH CONSENT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE OBLIGORS,
THE AGENT AND THE BANKS IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR
ANY DOCUMENT RELATED HERETO. THE OBLIGORS, THE AGENT AND THE BANKS EACH WAIVE PERSONAL SERVICE OF
ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK
LAW.

12.17 Waiver of Jury Trial. EACH OF THE OBLIGORS, THE BANKS AND THE AGENT WAIVES ITS
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED
TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN
ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY
OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT
CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH OF THE OBLIGORS, THE BANKS AND THE AGENT AGREE THAT ANY
SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE
FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY
OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE
OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

12.18 Entire Agreement. This Agreement, together with the other Loan Documents,
comprises the complete and integrated agreement of the parties on the subject matter hereof and
thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event
of any conflict between the provisions of this Agreement and those of any other Loan Document
(other than the Collateral Agency Agreement or any other Security Document), the provisions of this
Agreement shall control; provided, that the inclusion of supplemental rights or remedies in
favor of the Agent, the Banks, the Collateral Agent or any holder of Parity Debt in any other Loan
Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with
the joint participation of the respective parties thereto and shall be construed neither against
nor in favor of any party, but rather in accordance with the fair meaning thereof.

12.19 Collateral Agency Agreement. THIS AGREEMENT IS SUBJECT TO THE TERMS AND
CONDITIONS CONTAINED IN THE COLLATERAL AGENCY AGREEMENT, WHICH COLLATERAL AGENCY AGREEMENT, AMONG
OTHER THINGS, ESTABLISHES CERTAIN RIGHTS WITH RESPECT TO THE SECURITY FOR THIS AGREEMENT AND THE
SHARING OF PROCEEDS THEREOF WITH CERTAIN OTHER SECURED CREDITORS (AS DEFINED IN THE COLLATERAL
AGENCY AGREEMENT). COPIES OF SUCH COLLATERAL AGENCY AGREEMENT WILL BE FURNISHED TO ANY BANK UPON
REQUEST TO THE BORROWER OR THE AGENT.

12.20 Ratification and Confirmation of the Security Documents. Each of the Security
Documents, including without limitation the General Security Agreement, shall remain in full force
and effect and are hereby ratified and confirmed.

12.21 Interest Rate Limitation. Notwithstanding anything to the contrary contained in
any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed
the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”). If the
Agent or any Bank shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal,
refunded to the Borrower. In determining whether the interest contracted for, charged, or received
by the Agent or a Bank exceeds the Maximum Rate, such Person may, to the extent permitted by
applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium
rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

12.22 Survival of Representations and Warranties. All representations and warranties
made hereunder and in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by the Agent and
each Bank, regardless of any investigation made by the Agent or any Bank or on their behalf and
notwithstanding that the Agent or any Bank may have had notice or knowledge of any Default at the
time of the making of any Loan, and shall continue in full force and effect as long as any Loan or
any other Obligation hereunder shall remain unpaid or unsatisfied.

[REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

4

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

BORROWER:

AMERIGAS PROPANE, L.P.

	 	 	 	 	 
	By:

	 	AMERIGAS PROPANE, INC.,

as General Partner
	 	

	 
	 	 	 	 
	
 
	 	By:
	 	

	
 
	 	 	 	 
	
 
	 	Name:

Title:
	 	Robert W. Krick

Vice President and Treasurer

GUARANTORS:

AMERIGAS PROPANE, INC.

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

Title:

	 	Robert W. Krick

Vice President and Treasurer

PETROLANE INCORPORATED

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

Title:

	 	Robert W. Krick

Vice President and Treasurer
	 
	 	 

5

WACHOVIA BANK, NATIONAL

ASSOCIATION, as Agent and a Bank

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

Title:

	 	Lawrence P. Sullivan

Director
	 
	 	 

6

Each of the undersigned hereby acknowledges receipt of the foregoing Credit Agreement and hereby
acknowledges and reaffirms that its Subsidiary Guarantee and its Subsidiary Security Agreement
shall remain in full force and effect and is hereby ratified and confirmed in all respects
notwithstanding the execution of such Credit Agreement and the consummation of the transactions
described or otherwise contemplated therein. Each of the undersigned further acknowledges,
confirms and ratifies (i) its obligations under the Subsidiary Guarantee and the Subsidiary
Security Agreement are valid and binding obligations upon it and (ii) the Subsidiary Security
Agreement and all of the Collateral described therein does, and shall continue to, secure the
payment of all of the Obligations under the Credit Agreement and the Notes. To the best of the
each of the undersigned’s knowledge, it possesses no defense, offset, counterclaim, or cross-claim
whatsoever to the enforcement of such Subsidiary Guarantee and Subsidiary Security Agreement.

Date: April      , 2005

AMERIGAS PROPANE PARTS & SERVICE, INC.

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

Title:

	 	Robert W. Krick

Vice President and Treasurer

AMERIGAS EAGLE PROPANE, INC. (formerly
Columbia Propane Corporation)

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

Title:

	 	Robert W. Krick

Vice President and Treasurer

AMERIGAS EAGLE HOLDINGS, INC.

(formerly CP Holdings, Inc.)

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

Title:

	 	Robert W. Krick

Vice President and Treasurer

7

Schedule 2.1

TERM LOAN COMMITMENTS

	 	 	 	 	 	 	 	 	 
	 	 	TERM LOAN	 	 
	LENDER	 	COMMITMENT	 	PERCENTAGE
	Wachovia Bank, National Association
	 	$	35,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 
	TOTAL
	 	$	35,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 

8Exhibit 10.5

                     BATTLE MOUNTAIN GOLD EXPLORATION CORP.
                  2004 - 2005 NON-QUALIFIED STOCK OPTION PLAN

     1.   Purpose. This 2004 - 2005 Non-Qualified Stock Option Plan (the "Plan")
          -------
is intended to promote the financial success and interests of Battle Mountain
Gold Exploration Corp. (the "Company") and materially increase shareholder value
by giving incentives to the eligible officers and other employees and directors
of, and  consultants  and  advisors to, the Company, its parent (if any) and any
present  or  future  subsidiaries  of  the  Company  (collectively,  "Related
Corporations")  through providing opportunities to acquire stock in the Company.
As  used  herein,  the terms "parent" and "subsidiary" mean "parent corporation"
and  "subsidiary  corporation",  respectively,  as  those  terms  are defined in
Sections  424(e) and 424(f) or successor provisions of the Internal Revenue Code
of  1986  as  amended  from  time to time (the "Code").  Any proceeds of cash or
property  received  by  the  Company  for  the  sale  of  Battle  Mountain  Gold
Exploration  Corp. Common Stock pursuant to options granted under this Plan will
be  used  for  general  corporate  purposes.

     2.   Structure  of  the  Plan.  The  Plan  permits  the  following separate
          ------------------------
types  of  grant:

     A.  Options  may be granted hereunder to purchase shares of common stock of
the  Company.  These  options  will not qualify as Incentive Stock Options.  The
Non-Qualified  Options  are  sometimes  referred  to  hereinafter  as "Options".

     B.  Awards  of  stock  in  the  Company  ("Awards")  may  be  granted.

     C.  Opportunities  to  make  direct  purchases  of  stock  in  the  Company
("Purchases")  may  be  authorized.

Options,  Awards  and authorizations to make Purchases are sometimes referred to
hereinafter  as  "Stock  Rights".

     3.   Administration  of  the  Plan.
          ------------------------------

     A.  The Plan shall be administered by the Board of Directors of the Company
(the  "Board").  The  Board  may in its sole discretion grant Options, authorize
Purchases  and  grant Awards, as provided in the Plan. The Board shall have full
power  and authority, subject to the express provisions of the Plan, to construe
and  interpret  the  Plan and all Option agreements, Purchase authorizations and
Award  grants  thereunder,  to  establish,  amend  and  rescind  such  rules and
regulations  as  it  may  deem  appropriate for the proper administration of the
Plan,  to determine in each case the terms and provisions which shall apply to a
particular Option agreement, Purchase authorization, or Award grant, and to make
all  other  determinations  which  are,  in  the  Board's judgment, necessary or
desirable  for the proper administration of the Plan.  The Board may correct any
defect, supply any omission or reconcile any inconsistency in the Plan or in any
Option agreement, Purchase authorization or Award grant in the manner and to the
extent  it  shall,  in its sole discretion, consider expedient. Decisions of the
Board shall be final and binding on all parties who have an interest in the Plan
or  any  Option,  Purchase, Award, or stock issuance thereunder.  No director or
person  acting  pursuant to authority delegated by the Board shall be liable for
any  action  or  determination  under  the  Plan  made  in  good  faith.

                                        1
<PAGE>

     B.  The  Board  may,  to  the  full extent permitted by and consistent with
applicable  law  and  the  Company's  By-laws,  and  subject  to  Subparagraph D
hereinbelow,  delegate  any  or  all  of  its  powers  with  respect  to  the
administration  of  the  Plan  to a committee (the "Committee") appointed by the
Board.  If  a  Committee  has been appointed, all references in this Plan to the
Board  shall  mean  and  relate  to  that  Committee.

     C.  Those  provisions  of  this  Plan  which make express reference to Rule
16b-3  under  the  Securities  Exchange  Act  of 1934, as amended (the "Exchange
Act"),  or any successor rule ("Rule 16b-3"), or which are required in order for
certain  option  transactions  to  qualify for exemption under Rule 16b-3, shall
apply  only to those persons required to file reports under Section 16(a) of the
Exchange  Act  (a  "Reporting  Person").

     D.  If  the Company registers any class of equity security under Section 12
of  the  Exchange  Act,  the selection of a director or an officer (as the terms
"director"  and "officer" are defined for purposes of Rule 16b-3) as a recipient
of  an  option, the timing of the option grant, the exercise price of the option
and the number of shares subject to the option shall be determined either (i) by
the  Board,  if  all  of  the Board members are disinterested persons within the
meaning of Rule 16(b)(3), or (ii) by two or more directors having full authority
to  act  in  the  matter,  each  of  whom  shall be such a disinterested person.

     4.   Eligible  Employees  and  Others.  Non-Qualified  Options, Awards, and
          --------------------------------
authorizations  to  make  Purchases  may  be granted to any employee, officer or
director of, or consultant or advisor to the Company or any Related Corporation,
except  for instances where services are in connection with the offer or sale of
securities  in  a  capital-raising  transaction,  or they directly or indirectly
promote  or  maintain  a  market  for  the Company's securities.  In making such
determinations,  the Board and/or the Committee may take into account the nature
of  the  services  rendered  by  such  person, his or her present  and potential
contribution  to  the  Company's  success,  and  such other factors as the Board
and/or  Committee  in  its  discretion shall deem relevant.  The granting of any
Stock Right to any individual or entity shall neither entitle that individual or
entity  to,  nor  disqualify him from, participation in any other grant of Stock
Rights.

     5.   Stock.  The  stock  subject  to Options, Awards and Purchases shall be
          -----
authorized  but unissued shares of common stock of the Company ("Common Stock"),
or  shares  of  Common  Stock  reacquired  by  the  Company  in any manner.  The
aggregate number of shares which may be issued under the Plan is 3,500,000 (less
than  10%),  subject  to  adjustment as provided in Paragraph 13.  If any Option
granted  under  the Plan shall expire or terminate for any reason without having
been  exercised in full or shall cease for any reason to be exercisable in whole
or  in  part,  or  if  the  Company  shall reacquire any nonvested shares issued
pursuant  to Awards or Purchases, the unpurchased shares subject to such Option,
or  such  nonvested  shares so reacquired shall again be available for grants of
Stock  Rights  under  the  Plan.  No  fractional shares of Common Stock shall be
issued,  and  the  Board  and/or  Committee  shall determine the manner in which
fractional  share  value  shall  be  treated.

     6.   Option  Agreements.  As  a  condition  to the grant of an Option, each
          ------------------
recipient  of  an  Option  shall  execute  an  option agreement in such form not
inconsistent  with the Plan as the Board shall approve.  These option agreements
may  differ  among  recipients.  The  Board may, in its sole discretion, include
additional  provisions  in  option  agreements,  including  without  limitation
restrictions on transfer, repurchase rights, commitments to pay cash bonuses, to
make,  arrange for or guarantee loans or to transfer other property to optionees
upon exercise of options, or such other provisions as shall be determined by the
Board;  provided,  however,  that  such  additional  provisions  shall  not  be
inconsistent  with  any  provision  of  the  Plan.

                                        2
<PAGE>

     7.   Option  Exercise  Price.
          ------------------------

     A.  Subject  to  Subparagraph  3D  of  this Plan and Subparagraph B of this
Paragraph  7,  the purchase price per share of Common Stock deliverable upon the
exercise  of  an  Option  ("exercise  price")  shall be determined by the Board.

     B.  The  exercise price of each Non-Qualified Option granted under the Plan
shall  in  no event be less than the par value per share of the Company's Common
Stock.

     8.   Cancellation  and  New  Grant  of  Options,  Etc. The Board shall have
          ------------------------------------------------
the  authority to effect, at any time and from time to time, with the consent of
the  affected  optionees, the cancellation of any or all outstanding Options and
the grant in substitution therefor of new Options covering the same or different
shares of Common Stock and having an exercise price per share which may be lower
or  higher  than  the  exercise  price  per  share  of  the  canceled  Options.

     9.   Exercise  of  Options.
          ---------------------

     A.  Each  Option granted under the Plan shall be exercisable either in full
or  in installments at such time or times and during such period as shall be set
forth  in  the agreement evidencing the Option, subject to the provisions of the
Plan.  The  partial  exercise  of  an  option  shall  not  cause the expiration,
termination  or cancellation of the remaining portion thereof. The Board may, in
its  sole  discretion,  (i)  accelerate  the  date  or dates on which all or any
particular  Option  or  Options  granted under the Plan may be exercised or (ii)
extend  the dates during which all, or any particular, Option or Options granted
under  the  Plan  may  be  exercised.

     B.  Options  granted under the Plan may provide for payment of the exercise
price  plus  taxes  (as  provided  in Section 22, below) by any of the following
methods:

     (i) In cash, by wire transfer, by certified or cashier's check, or by money
order;  or

     (ii)  By  delivery  to  the Company of an exercise notice that requests the
Company  to  issue  to  the  Optionee  the full number of shares as to which the
Option  is  then  exercisable,  less the number of shares that have an aggregate
Fair Market Value, as determined by the Board in its sole discretion at the time
of  exercise,  equal to the aggregate purchase price of the shares to which such
exercise  relates. (This method of exercise allows the Optionee to use a portion
of  the  shares  issuable  at  the time of exercise as payment for the shares to
which  the option relates and is often referred to as a "cashless exercise." For
example, if the Optionee elects to exercise 1,000 shares at an exercise price of
$0.25 and the current Fair Market Value of the shares on the date of exercise is
$1.00,  the  Optionee  can use 250 of the 1,000 shares at $1.00 per share to pay
for  the  exercise of the entire Option (250 x $1.00 = $250.00) and receive only
the  remaining  750  shares.)

                                        3
<PAGE>

For  purposes  of  this  section,  "  Fair Market Value" shall be defined as the
average  closing price of the common stock (if actual sales price information on
any  trading  day is not available, the closing bid price shall be used) for the
five  trading  days  prior  to the Date of Exercise of this Option (the "Average
Closing  Bid  Price"),  as  reported  by  the National Association of Securities
Dealers  Automated  Quotation  System  ("NASDAQ"), or if the common stock is not
traded  on NASDAQ, the Average Closing Bid Price in the over-the-counter market;
provided,  however,  that if the common stock is listed on a stock exchange, the
Fair  Market Value shall be the Average Closing Bid Price on such exchange; and,
provided  further,  that  if  the  common  stock  is not quoted or listed by any
organization,  the fair value of the common stock, as determined by the Board of
Directors  of  the  Company,  whose  determination shall be conclusive, shall be
used).  In  no event shall the Fair Market Value of any share of Common Stock be
less  than  its  par  value.

     10.  Option  Period.  Subject  to  earlier  termination  under  other
          --------------
provisions  of  this Plan, each Option and all rights thereunder shall expire on
such  date  as  shall  be  set  forth  in  the  applicable  option  agreement.

     11.  Nontransferability  of  Options.  Options  shall  not be assignable or
          -------------------------------
transferable  by the optionee, either voluntarily or by operation of law, except
by  will  or  the  laws of descent and distribution, and, during the life of the
optionee,  except  to  the extent otherwise provided in the agreement evidencing
the  Option,  shall  be  exercisable  only  by  the  optionee.

     12.  Effect  of  Termination  of  Employment or Other Relationship. Subject
          -------------------------------------------------------------
to  all  other  provisions  of the Plan, the Board shall determine the period of
time  during  which  an  Optionee  may  exercise  an  Option  following  (i) the
termination  of the optionee's employment or other relationship with the Company
or  a Related Corporation or (ii) the death or disability of the optionee.  Such
periods  shall  be  set  forth  in  the  agreement  evidencing  the  Option.

     13.  Adjustments.
          -----------

     A.  If, through or as a result of any merger, consolidation, sale of all or
substantially  all  of  the  assets  of  the  Company,  reorganization,
recapitalization,  reclassification,  stock dividend, stock split, reverse stock
split  or  other similar transaction, (i) the outstanding shares of Common Stock
are  increased,  decreased or exchanged for a different number or kind of shares
or  other  securities  of  the  Company,  or  (ii)  additional  shares or new or
different shares or other securities of the Company or other non-cash assets are
distributed  with respect to such shares of Common Stock or other securities, an
appropriate and proportionate adjustment shall be made in (a) the maximum number
and kind of shares reserved for issuance under the Plan, (b) the number and kind
of  shares or other securities subject to any then outstanding Options under the
Plan,  and  (c) the price for each share subject to any then outstanding Options
under  the  Plan, without changing the aggregate purchase price as to which such
Options  remain exercisable. No fractional shares shall be issued under the Plan
on  account  of  any  such  adjustments.

     B.  Any  adjustments  under this Paragraph 13 shall be made by the Board of
Directors,  whose determination as to what adjustments, if any, will be made and
the  extent  thereof  shall  be  final,  binding  and  conclusive.

                                        4
<PAGE>

     14.  Rights  as  a  Shareholder.  The  holder  of  an  Option shall have no
          --------------------------
rights  as  a  shareholder  with  respect  to  any  shares covered by the option
(including,  without  limitation,  any  voting  rights,  the right to inspect or
receive  the  Company's  balance sheets or financial statements or any rights to
receive  dividends  or non-cash distributions with respect to such shares) until
the  date  of issue of a stock certificate for such shares.  No adjustment shall
be  made for dividends or other rights for which the record date is prior to the
date  such  stock  certificate  is  issued.

     15.  Merger,  Consolidation,  Asset  Sale,  Liquidation,  Etc.
          ---------------------------------------------------------

     A.  Except as may otherwise be provided in the applicable option agreement,
in the event of a consolidation or merger or sale of all or substantially all of
the  assets  of  the  Company  in  which  outstanding shares of Common Stock are
exchanged  for  securities,  cash  or other property of any other corporation or
business  entity,  or  in  the  event of the liquidation of the Company (each, a
"Change  in  Control"),  the Board, or the board of directors of any corporation
assuming  the obligations of the Company, shall, in its discretion, take any one
or  more  of the following actions, as to outstanding Options:  (i) provide that
such  Options  shall  be assumed, or equivalent options shall be substituted, by
the  acquiring  or  succeeding  corporation (or an affiliate thereof); (ii) upon
written  notice  to  the optionees, provide that any and all outstanding Options
shall become exercisable in full (to the extent not otherwise so exercisable) as
of  a  specified  date  or  time  ("Accelerated  Vesting  Date")  prior  to  the
consummation  of  such  transaction,  and  that  all  unexercised  Options shall
terminate  as  of  a  specified  date  or  time  ("Accelerated Expiration Date")
following the Accelerated Vesting Date unless exercised by the Optionee prior to
the  Accelerated  Expiration  Date;  provided,  however, that optionees shall be
given  a  reasonable  period of time within which to exercise or provide for the
exercise  of  outstanding  Options  following such written notice and before the
Accelerated  Expiration  Date; (iii) in the event of a merger under the terms of
which  holders of the Common Stock of the Company will receive upon consummation
thereof  a  cash  payment  for each share surrendered in the merger (the "Merger
Price"),  terminate  each  outstanding Option in exchange for a payment, made or
provided  for  by  the  Company,  equal  in amount to the excess, if any, of the
Merger  Price  over  the per-share exercise price of each such Option, times the
number  of shares of Common Stock subject to such Option; or (iv) terminate each
outstanding Option in exchange for a cash payment equal in amount to the product
of  the excess, if any, of the fair market value of a share of Common Stock over
the  per-share  exercise  price  of each such Option, times the number of shares
subject  to  such  Option.  The Board shall determine the fair market value of a
share  of  Common  Stock  for  purposes  of  the  foregoing,  and  the  Board's
determination  of such fair market value shall be final, binding and conclusive.

     B.  In  the  event  of  a  Change  in  Control and to the extent the rights
described  in  this  Section  15B are not already substantially provided to each
Qualified  Option  Recipient  (as  defined  below) by the Board (or the board of
directors  of  any corporation assuming the obligations of the Company) pursuant
to  Section  15A,  beginning on the date which is 180 days from the date of such
Change  in  Control,  each  Qualified  Option  Recipient shall have the right to
exercise  and  receive  from  the  Company  or  its  successor  their respective
Acceleration  Amount  (as  defined  below).  A  "Qualified  Option Recipient" is
defined  as  an  option  recipient  hereunder  who  both  (A)  has  maintained a
relationship  as  an  employee, officer or director of, or consultant or advisor
to,  the  Company  or  its  successor  for the 180 days immediately prior to the
Change  in  Control  and (B) on the date which is 180 days after the date of the
Change  in  Control, either (i) maintains a relationship as an employee, officer
or  director  of,  or  consultant or advisor to, the Company or its successor or
(ii) fails to maintain a relationship as an employee, officer or director of, or
consultant  or advisor to, the Company or its successor by reason of having such
relationship  terminated  by  the Company or its successor other than for Cause,
where  "Cause"  means  willful  misconduct  or  willful  failure  of  the option
recipient to perform the responsibilities of such option recipient's agreed-upon
business  relationship  with  the  Company  or  its successor, including without
limitation  such  option  recipient's breach of any provision of any employment,
consulting,  nondisclosure,  non-competition  or  similar  agreement between the
option  recipient  and  the  Company.  With  respect  to  each  Qualified Option
Recipient,  the "Acceleration Amount" shall mean the lesser of (a) the number of
additional  shares of Common Stock (or their equivalent) which would have become
vested  pursuant  to  their  option  agreement over the twelve (12) month period
following  the  date  of the Change in Control or (b) fifty percent (50%) of the
shares  of  Common Stock (or their equivalent) which had not yet vested pursuant
to  their  option  agreement as of the date of the Change in Control.  The Board
and,  where  applicable,  the board of directors of any corporation assuming the
obligations  of  the  Company, shall take all necessary action to accomplish the
purposes  of  this  Section  15B, including all such actions as are necessary to
provide  for  the  assumption  of  such  obligation  upon the Change in Control.

                                        5
<PAGE>

     C.  The  Company  may  grant  Options  under  the  Plan in substitution for
Options  held  by  employees  of another corporation who become employees of the
Company  or  a Related Corporation as the result of a merger or consolidation of
the  employing  corporation  with  the Company or a Related Corporation, or as a
result of the acquisition by the Company or a Related Corporation of property or
stock  of  the  employing  corporation.  The  Company may direct that substitute
Options  be  granted  on  such  terms  and  conditions  as  the  Board considers
appropriate  in  the  circumstances.

     D. In the event of a Change in Control and with respect thereto, the rights
and  responsibilities  of holders of Stock Rights pursuant to this Plan shall be
governed  first  and  foremost  by  the  Company's agreement with the respective
recipient  of such Stock Rights and then, to the extent applicable, by the terms
of  this  Section  15.

     16.  Stock  Restriction  Agreement.  As  a  condition  to  the  grant of an
          -----------------------------
Award  or a Purchase authorization under the Plan, the recipient of the Award or
Purchase  authorization  shall  execute  an  agreement  ("Stock  Restriction
Agreement")  in  such  form not inconsistent with the Plan as may be approved by
the  Board.  Stock  Restriction  Agreements  may differ among recipients.  Stock
Restriction Agreements may include any provisions the Board determines should be
included  and  that  are  not  inconsistent  with  any  provision  of  the Plan.

     17.  No  Special  Employment  Rights.  Nothing  contained in the Plan or in
          -------------------------------
any  option  agreement or other agreement or instrument executed pursuant to the
provisions  of the Plan shall confer upon any Optionee any right with respect to
the  continuation  of  his  or  her  employment  by  the  Company or any Related
Corporation  or  interfere in any way with the right of the Company or a Related
Corporation  at any time to terminate such employment or to increase or decrease
the  compensation  of  the  optionee.

     18.  Other  Employee  Benefits.  Except  as  to  plans which by their terms
          -------------------------
include  such  amounts  as  compensation, no amount of compensation deemed to be
received by an employee as a result of the grant or exercise of an Option or the
sale  of  shares  received upon such exercise, or as a result of the grant of an
Award  or the authorization or making of a Purchase will constitute compensation
with  respect  to  which  any  other  employee  benefits  of  such  employee are
determined,  including,  without  limitation, benefits under any bonus, pension,
profit-sharing,  life insurance or salary continuation plan, except as otherwise
specifically  determined  by  the  Board.

                                        6
<PAGE>

     19.  Amendment  of  the  Plan.
          ------------------------

     A.  The  Board  may at any time, and from time to time, modify or amend the
Plan  in  any  respect.

     B.  The termination or any modification or amendment of the Plan shall not,
without the consent of an optionee, affect the optionee's rights under an Option
previously  granted.  With  the  consent of the Optionee affected, the Board may
amend  outstanding option agreements in a manner not inconsistent with the Plan.
The  Board  shall have the right to amend or modify (i) the terms and provisions
of  the  Plan,  and  (ii)  the  terms  and  provisions  of  the  Plan and of any
outstanding  Option  to  the extent necessary to ensure the qualification of the
Plan  under  Rule  16b-3.

     20.  Investment  Representations.  The  Board  may  require  any  person to
          ---------------------------
whom  an  Option  is  granted, as a condition of exercising such Option, and any
person  to  whom an Award is granted or a Purchase is authorized, as a condition
thereof,  to  give  written assurances in substance and form satisfactory to the
Board  to  the  effect that such person is acquiring the Common Stock subject to
the  Option,  Award or Purchase for such person's own account for investment and
not  with  any  present intention of selling or otherwise distributing the same,
and to such other effects as the Company deems necessary or appropriate in order
to  comply  with federal and applicable state securities laws, or with covenants
or representations made by the Company in connection with any public offering of
its  Common  Stock.

     21.  Compliance  With  Securities  Laws.  Each  Option  shall be subject to
          ----------------------------------
the  requirement  that  if,  at any time, counsel to the Company shall determine
that  the  listing, registration or qualification of the shares subject to such
Option  upon  any  securities exchange or under any state or federal law, or the
consent  or  approval  of  any  governmental  or  regulatory  body,  or that the
disclosure  of non-public information or the satisfaction of any other condition
is  necessary as a condition of, or in connection with, the issuance or purchase
of  shares  thereunder,  such  Option may not be exercised, in whole or in part,
unless  such  listing,  registration,  qualification,  consent  or  approval, or
satisfaction  of  such  condition  shall  have  been  effected  or  obtained  on
conditions  acceptable  to the Board. Nothing herein shall be deemed to require
the  Company  to  apply  for  or  to  obtain  such  listing,  registration  or
qualification,  or  to  satisfy  such  condition.

     22.  Withholding.  The  Company  shall  have  the  right  to  deduct  from
          -----------
payments  of  any kind otherwise due to the Optionee any federal, state or local
taxes  of  any  kind  required  by law to be withheld with respect to any shares
issued  upon  exercise  of Options under the Plan or upon the grant of an Award,
the making of a Purchase of Common Stock for less than its fair market value, or
the  vesting of restricted Common Stock acquired pursuant to a Stock Right.  The
Board  in its sole discretion may condition the exercise of an Option, the grant
of  an  Award,  the  making  of  a Purchase, or the vesting of restricted shares
acquired by exercising a Stock Right on the grantee's payment of such additional
withholding  taxes  by  1) additional withholding if the Optionee is an existing
employee  with  respect  to  whom  the  Company  withholds  taxes on the date of
exercise  (or  such other time as the Company's obligation to withhold taxes may
accrue);  or  2) direct payment of the required withholding to the Company.  The
Compensation  Committee  of the Board of Directors or the Board of Directors, as
applicable,  in  their sole discretion, shall determine the amount of taxes that
are  required  to  be  withheld.

                                        7
<PAGE>

     23.  Effective  Date  and  Duration  of  the  Plan.
          ----------------------------------------------

     A.  The  Plan  shall  become  effective when adopted by the Board and Stock
Rights granted under the Plan shall become exercisable upon the Board's approval
of  the  Plan.  Amendments  to the Plan not requiring shareholder approval shall
become  effective  when  adopted by the Board. Stock Rights may be granted under
the Plan at any time after the effective date and before the termination date of
the  Plan.

     B.  Unless  sooner terminated as provided elsewhere in this Plan, this Plan
shall  terminate  upon the close of business on the day next preceding the tenth
anniversary  of the date of its adoption by the Board.  Stock Rights outstanding
on  such  date  shall  continue  to have force and effect in accordance with the
provisions  of  the  instruments  evidencing  such  Stock  Rights.

Adopted  by  the  Board  of  Directors  on  December  15,  2004.

                                        8
<PAGE>

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