Document:

<PAGE>
                FIRST AMENDMENT TO SUBSIDIARY SECURITY AGREEMENT

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

                                    RECITALS

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

                                    AGREEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                  SECTION 4. Miscellaneous.

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

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

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

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

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

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

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

                           [Signature Pages to Follow]

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

                                    ASSIGNOR:

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

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

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

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

                                    CASH COLLATERAL SUB-AGENT:

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

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

                               INVESTMENT PROPERTY

[This Schedule I is to be completed by the Assignors and shall describe all
Investment Property owned by the Assignors.]<PAGE>
                             AMERIGAS PROPANE, INC.

                          2000 LONG-TERM INCENTIVE PLAN

                      ON BEHALF OF AMERIGAS PARTNERS, L.P.
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION NUMBER                                                                                       PAGE
<S>                                                                                                  <C>
1.     Purpose and Design......................................................................        1

2.     Definitions.............................................................................        1

3.     Maximum Number of Units Available for Grants............................................        3

4.     Duration of the Plan....................................................................        4

5.     Administration..........................................................................        4

6.     Eligibility.............................................................................        4

7.     Restricted Units........................................................................        4

8.     Restricted Unit Distribution Equivalents................................................        6

9.     Requirements for Performance Goals and Performance Periods..............................        7

10.    Non-Transferability.....................................................................        8

11.    Consequences of a Change of Control.....................................................        8

12.    Adjustment of Number and Price of Units, Etc............................................        8

13.    Limitation of Rights....................................................................        9

14.    Amendment or Termination of Plan........................................................        9

15.    Tax Withholding.........................................................................        9

16.    Governmental Approval...................................................................        9

17.    Effective Date of Plan..................................................................       10

18.    Successors .............................................................................       10

19.    Headings and Captions...................................................................       10

20.    Governing Law...........................................................................       10
</TABLE>

                                       (i)
<PAGE>
                             AMERIGAS PROPANE, INC.

                          2000 LONG-TERM INCENTIVE PLAN

                      ON BEHALF OF AMERIGAS PARTNERS, L.P.

1.       PURPOSE AND DESIGN

         The purpose of this Plan is to assist the Company in its capacity as
General Partner of AmeriGas Partners, L.P. ("APLP" or the "Partnership") in
securing and retaining key corporate executives of outstanding ability who are
in a position to participate significantly in the development and implementation
of the General Partner's strategic plans and thereby to contribute materially to
the long-term growth, development, and profitability of APLP by affording them
an opportunity to acquire Units by the achievement of specific performance
goals. The Plan is designed to align directly long-term executive compensation
with tangible, direct and identifiable benefits realized by APLP Unitholders.

2.       DEFINITIONS

         Whenever used in this Plan, the following terms will have the
respective meanings set forth below:

         2.01 "Administrative Committee" means the committee of employees of the
Company and its affiliates appointed by the Committee to perform ministerial and
other assigned functions.

         2.02 "Affiliate" will have the meaning ascribed to such term in Rule
12b-2 of the General Rules under the Exchange Act.

         2.03 "APLP" means AmeriGas Partners, L.P., a Delaware limited
partnership.

         2.04 "APLP Partnership Agreement" means the Amended and Restated
Agreement of Limited Partnership of AmeriGas Partners, L.P., dated as of
September 18, 1995, as amended from time to time.

         2.05 "Board" means the Company's Board of Directors as constituted from
time to time.

         2.06 "Change of Control" means a change of control as defined in the
change of control agreement between the Company and its executive officers, as
amended from time to time.

         2.07 "Committee" means the Compensation/Pension Committee of the Board
or its successor.
<PAGE>
         2.08 "Common Unit" means a unit representing a fractional part of the
Partnership interests of all limited partners and assignees and having the
rights and obligations specified with respect to Common Units in the Amended and
Restated Agreement of Limited Partnership of the Partnership, as amended from
time to time.

         2.09 "Company" means AmeriGas Propane, Inc., a Pennsylvania
corporation, and any successor thereto that is the General Partner.

         2.10 "Comparison Group" means the group determined by the Committee
no later than ninety (90) days after the commencement of a Performance Period
consisting of the Partnership and such other entities deemed by the Committee
(in its sole discretion) to be reasonably comparable to the Partnership.

         2.11 "Date of Grant" means the effective date of a Restricted Unit
grant; provided, however, that no retroactive grants will be made.

         2.12 "Employee" means a regular full-time salaried employee (including
officers and directors who are also employees) of the Company who performs
services directly or indirectly for the benefit of the Partnership.

         2.13 "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         2.14 "General Partner" means AmeriGas Propane, Inc., its successor as
general partner of APLP, or its transferee, all as provided in Section 6.4(c) of
the APLP Partnership Agreement.

         2.15 "Operating Partnership" means AmeriGas Propane, L.P., a Delaware
limited partnership.

         2.16 "Participant" means an Employee designated by the Committee to
participate in the Plan.

         2.17 "Partnership" means AmeriGas Partners, L.P., a Delaware limited
Partnership or any successor thereto.

         2.18 "Partnership Security" means any class or series of Partnership
interest, any option, right, warrant or appreciation rights relating thereto, or
any other type of equity interest that APLP may lawfully issue, or any unsecured
or secured debt obligation of APLP that is convertible into any class or series
of equity interests of APLP.

         2.19 "Performance Goal" means the goal or goals that must be met in
order for Restricted Unit Distribution Equivalents, if any, to be paid and
restrictions on Restricted Units to lapse. All Performance Goals must meet the
requirements of Section 9.

                                       2
<PAGE>
         2.20 "Performance Period" means the performance period during which
performance will be measured for Performance Goals. Performance Periods must
meet the requirements of Section 9.

         2.21 "Plan" means the AmeriGas Propane, Inc. 2000 Long-Term Incentive
Plan on behalf of AmeriGas Partners, L.P. as stated herein, including any
amendments or modifications thereto.

         2.22 "Restricted Unit Distribution Equivalent" means an amount
determined by multiplying the number of Restricted Units granted to a
Participant subject to any adjustment under Section 12, by the per-Unit cash
distribution, or the per-Unit fair market value (as determined by the Committee)
of any distribution in consideration other than cash, paid by APLP on its Units
on a distribution payment date that falls within the relevant Performance
Period.

         2.23 "Restricted Units" means Units that are subject to restrictions
which lapse upon the achievement of Performance Goals within the relevant
Performance Period.

         2.24 "Retirement" means separation from employment upon or after
attaining (i) age 55 with at least 10 years of service with the Company or its
affiliates, or (ii) age 65 with at least 5 years of service with the Company or
its affiliates.

         2.25 "Termination without Cause" means termination for the convenience
of the Company or the Partnership for any reason other than (i) misappropriation
of funds, (ii) habitual insobriety or substance abuse, (iii) conviction of a
crime involving moral turpitude, or (iv) gross negligence in the performance of
duties, which gross negligence has had a material adverse effect on the
business, operations, assets, properties or financial condition of the Company
or the Partnership. The Committee will have the sole discretion to determine
whether a significant reduction in the duties and responsibilities of a
Participant will constitute a Termination without Cause.

3.       MAXIMUM NUMBER OF UNITS AVAILABLE FOR GRANTS

         The number of Restricted Units that may be granted under this Plan may
not exceed 500,000 in the aggregate, subject, however, to the adjustment
provisions of Section 12 below. With regard to grants to any one individual in a
calendar year, the number of Restricted Units that may be issued will not exceed
25,000. If Restricted Units are forfeited, forfeited Restricted Units will again
be available for the purposes of the Plan. Restricted Units may be (i)
previously issued and outstanding Units, (ii) newly issued Units, or (iii) a
combination of each.

                                       3
<PAGE>
4.       DURATION OF THE PLAN

         The Plan will remain in effect until all Units subject to it have been
issued and transferred to Participants and all Restricted Units have been vested
or forfeited. Notwithstanding the foregoing, Restricted Units may not be granted
after December 31, 2009.

5.       ADMINISTRATION

         The Plan will be administered by the Committee. Subject to the express
provisions of the Plan, the Committee will have authority, in its complete
discretion, to determine the Employees to whom, and the time or times at which
grants will be made. In making such determinations, the Committee may take into
account the nature of the services rendered by an Employee, the present and
potential contributions of the Employee to the Partnership's success and such
other factors as the Committee in its discretion deems relevant. Grants under
the Plan need not be uniform as among Participants. Subject to the express
provisions of the Plan, the Committee will also have authority to construe and
interpret the Plan, to prescribe, amend and rescind rules and regulations
relating to it, to determine the terms and provisions of the restrictions
relating to Restricted Units (none of which need be identical), and to make all
other determinations (including factual determinations) necessary or advisable
for the orderly administration of the Plan. All ministerial functions, in
addition to those specifically delegated elsewhere in the Plan, shall be
performed by a committee comprised of employees of the Company and its
affiliates ("Administrative Committee") appointed by the Committee.

6.       ELIGIBILITY

         Grants hereunder may be made only to Employees (including directors who
are also Employees of the Company) who, in the sole judgment of the Committee,
are individuals who are in a position to significantly participate in the
development and implementation of the General Partner's strategic plans for the
Partnership and thereby contribute materially to the continued growth and
development of the Partnership and to its future financial success.

7.       RESTRICTED UNITS

         7.1 Grant of Restricted Units. Subject to the provisions of Section 3,
Restricted Units and Restricted Unit Distribution Equivalents may be granted to
Participants at any time and from time to time as may be determined by the
Committee. Restricted Units may be granted with or without Restricted Unit
Distribution Equivalents as determined by the Committee. Units issued or
transferred pursuant to awards of Restricted Units may be issued or transferred
for consideration or for no consideration, and will be subject to Performance
Goals meeting the requirements of Section 9.

         7.2 Requirement of Employment. If the Participant ceases to be an
Employee before the Performance Goals are met, awards of Restricted Units will
terminate as to all Units covered by the grant as to which the restrictions have
not lapsed, and those Units must be immediately

                                       4
<PAGE>
returned to the Company. The Committee may provide for partial awards if a
Participant remains employed by the Company, but is no longer performing
services directly or indirectly for the benefit of the Partnership. However, if
a Participant holding Restricted Units ceases to be an Employee by reason of (i)
Retirement, (ii) disability, or (iii) death, the restrictions on Restricted
Units held by any such Participant will lapse pursuant to the following:

                  (a) Retirement. If a Participant terminates employment on
account of Retirement, the restrictions on such Participant's Restricted Units
will lapse with regard to any Performance Period that ends within 36 months
after the date of such retirement; provided that Performance Goals associated
with such Performance Period are achieved within that 36-month period.

                  (b) Disability. If a Participant is determined to be
"disabled" (as defined under the Company's long-term disability plan), the
restrictions on such Participant's Restricted Units will lapse with regard to
any Performance Period that ends within 36 months after the date of such
disability; provided that Performance Goals associated with such Performance
Period are achieved within that 36 month period.

                  (c) Death. In the event of the death of a Participant while
employed by the Company, the restrictions on such Participant's Restricted Units
will lapse at the end of the Performance Period associated with such Restricted
Units upon the achievement of the related Performance Goals.

         7.3 Restrictions on Transfer and Legend on Unit Certificate. Until the
Performance Goals are met, a Participant may not sell, assign, transfer, pledge
or otherwise dispose of the Restricted Units or rights to Restricted Unit
Distribution Equivalents, if any. Each certificate for Restricted Units will
contain a legend giving appropriate notice of the restrictions in the grant. The
Participant will be entitled to have the legend removed from the certificate
covering the Units subject to restrictions when all restrictions on such Units
have lapsed. The Administrative Committee may determine that the Company will
not issue certificates for Restricted Units until all restrictions on such Units
have lapsed, or that the Company will retain possession of certificates for
Restricted Units until all restrictions on such Units have lapsed.

         7.4 Privileges of a Unitholder. Unless the Committee determines
otherwise, during the Performance Period, a Participant issued certificates
under Section 7.3 will have the right to vote Restricted Units, and to receive
any distributions paid on such Units subject to any restrictions deemed
appropriate by the Committee.

         7.5 Form of Payment for Restricted Units. The Committee will have the
sole discretion to determine whether the Company's obligation in respect of
payment of awards of Restricted Units for a Participant who is not issued
certificates under Section 7.3 will be paid in Units, solely in cash or partly
in Units and partly in cash.

                                       5
<PAGE>
8.       RESTRICTED UNIT DISTRIBUTION EQUIVALENTS

         8.1 Amount of Distribution Equivalents Credited. If the Committee so
specifies when granting Restricted Units, from the Date of Grant of Restricted
Units to a Participant until the earlier of (i) the end of the applicable
Performance Period or (ii) the date of disability, death or termination of
employment for any reason (including retirement), of a Participant, the Company
will keep records for such Participant ("Account") and will credit on each
payment date for the payment of a distribution made by APLP on its Units an
amount equal to the Restricted Unit Distribution Equivalent associated with such
Restricted Units. Notwithstanding the foregoing, a Participant may not accrue
during any calendar year Distribution Equivalents in excess of $500,000. No
interest will be credited to any such Account.

         8.2 Payment of Credited Restricted Unit Distribution Equivalents.
Payment of Restricted Unit Distribution Equivalents will be made only upon the
determination by the Committee that the Performance Goals associated with such
Distribution Equivalents have been achieved as prescribed in accordance with
Section 9.

         8.3 Timing of Payment of Restricted Unit Distribution Equivalents.
Except as otherwise determined by the Committee, in the event of (i) termination
of a grant of Restricted Units pursuant to Section 7.2, no payments of
Restricted Unit Dividend Equivalents will be made (A) prior to the end of the
applicable Performance Period and (B) to any Participant whose employment by the
Company terminates prior to the end of the applicable Performance Period for any
reason other than Retirement, death or disability. As soon as practicable after
the end of such Performance Period, the Committee will certify and announce the
results for each Performance Period prior to any payment. Unless a Participant
will have made an election under Section 8.4 to defer receipt of any portion of
such amount, a Participant will receive the aggregate amount of Restricted Unit
Dividend Equivalents payable to that Participant in cash.

         8.4 Deferral of Restricted Unit Distribution Equivalents. A Participant
will have the right to defer receipt of any Restricted Unit Distribution
Equivalent payments if the Participant elects to do so on or prior to December
31 of the year preceding the beginning of the last full year of the applicable
Performance Period (or such other time as the Administrative Committee will
determine is appropriate to make such deferral effective under the applicable
requirements of federal tax laws). The terms and conditions of any such deferral
(including the period of time thereof) will be subject to approval by the
Administrative Committee and all deferrals will be made on a form provided a
Participant for this purpose.

                                       6
<PAGE>
9.       REQUIREMENTS FOR PERFORMANCE GOALS AND PERFORMANCE PERIODS

         9.1 Designation as Qualified Performance-Based Compensation. Grants of
Restricted Units and Restricted Unit Distribution Equivalents will qualify as
"qualified performance-based compensation" under Section 162(m) of the Internal
Revenue Code ("Code"), including the requirement that the achievement of the
goals be substantially uncertain at the time they are established and that the
goals be established in such a way that a third party with knowledge of the
relevant facts could determine whether and to what extent the Performance Goals
have been met. The Committee will not have discretion to increase the amount of
compensation that is payable upon achievement of the designated Performance
Goals, but may, in its sole discretion, reduce the amount of compensation that
is payable upon the achievement of the designated Performance Goals.

         9.2 Requirements for Performance Goals. When Restricted Units and
Restricted Unit Distribution Equivalents are granted, the Committee will
establish in writing Performance Goals either before the beginning of the
Performance Period or during a period ending no later than the earlier of (i) 90
days after the beginning of the Performance Period or (ii) the date on which 25%
of the Performance Period has elapsed, or such other date as may be required or
permitted under applicable regulations under Section 162(m) of the Code. The
Performance Goal must specify (A) the Performance Goal(s) that must be met in
order for restrictions on the Restricted Units to lapse or the Restricted Unit
Distribution Equivalents to be paid, (B) the Performance Period during which the
Performance Goals must be met, (C) the maximum amounts that may be paid if the
Performance Goals are met, and (D) any other conditions that the Committee deems
appropriate and consistent with the Plan and the requirements of Section 162(m)
of the Code for qualified performance-based compensation.

         9.3 Criteria Used for Performance Goals. The Committee will use
Performance Goals based on one or more of the following criteria: Unit price,
earnings per Unit, net earnings, operating earnings, return on assets,
unitholder return, return on equity, growth in assets, unit volume, sales, cash
flow, market share, relative performance to a Comparison Group, or strategic
business criteria consisting of one or more objectives based on meeting
specified revenue goals, market penetration goals, geographic business expansion
goals, cost targets or goals relating to acquisitions or divestitures. The
Performance Goals may relate to the Participant's business unit or the
performance of the Partnership as a whole, or any combination of the foregoing.
Performance Goals need not be uniform as among Participants.

         9.4 Announcement of Grants. The Committee will certify and announce the
results for each Performance Period to all Participants as promptly as
practicable following the completion of the Performance Period. If and to the
extent that the Committee does not certify that the Performance Goals have been
met, the applicable grants of Restricted Units and Restricted Unit Distribution
Equivalents for the Performance Period will be forfeited.

                                       7
<PAGE>
10.      NON-TRANSFERABILITY

         No Restricted Unit, rights to Restricted Unit Distribution Equivalents
or other rights granted under the Plan will be transferable otherwise than by
will or the laws of descent and distribution.

11.      CONSEQUENCES OF A CHANGE OF CONTROL

         11.1 Notice and Acceleration. Upon a Change of Control, unless the
Committee determines otherwise, (i) the Company will provide each Participant
with outstanding grants written notice of such Change of Control, (ii) the
restrictions and conditions on all outstanding grants of Restricted Units will
immediately lapse, and (iii) Restricted Unit Distribution Equivalents will
become payable in cash in such amounts as the Committee may determine.

         11.2 Assumption of Grants. Upon a Change of Control where the
Partnership is not the surviving entity (or survives only as a subsidiary of
another entity), unless the Committee determines otherwise, all outstanding
grants will be converted to similar grants of the surviving entity (or a parent
of the surviving entity).

         11.3 Committee. The Committee making the determinations under this
Section 11 following a Change of Control must be comprised of the same members
as those on the Committee immediately before the Change of Control. If the
Committee members do not meet this requirement, the automatic provisions of
Sections 11.1 and 11.2 will apply, and the Committee will not have discretion to
vary them.

         11.4 Limitations. Notwithstanding anything in the Plan to the contrary,
in the event of a Change of Control, the Committee will not have the right to
take any actions described in the Plan (including without limitation actions
described in this Section 11) that would make the Change of Control ineligible
for desired accounting treatment if, in the absence of such right, the Change of
Control would qualify for such treatment and the Company intends to use such
treatment with respect to the Change of Control.

12.      ADJUSTMENT OF NUMBER AND PRICE OF UNITS, ETC.

         Notwithstanding anything to the contrary in this Plan, in the event (a)
any recapitalization, reorganization, merger, consolidation, spin-off,
combination, repurchase, exchange of Common Units or other securities of APLP;
security split or reverse split, extraordinary distribution, liquidation,
dissolution, significant corporate or partnership transaction (whether relating
to assets, limited partnership interests, or stock) involving APLP, or other
extraordinary transaction or event affects Units such that an adjustment is
determined by the Committee to be appropriate in order to prevent dilution or
enlargement of Participants' rights under the Plan, then the Committee may
adjust (i) any or all of the number or kind of Partnership interests reserved
for issuance under the Plan, (ii) the maximum number of Units which may be the
subject of grants to any one individual in any calendar year, (iii) the number
or kind of Partnership interests to be

                                       8
<PAGE>
subject to future grants under the Plan, (iv) the number of Restricted Units,
(v) the terms and conditions applicable to Restricted Units, and/or (vi) the
terms and conditions applicable to Restricted Unit Distribution Equivalents,
provided that the number of Restricted Units will always be a whole number. Any
such determination of adjustments by the Committee will be conclusive for all
purposes of the Plan.

13.      LIMITATION OF RIGHTS

         Nothing contained in this Plan will be construed to give an Employee
any right to a grant hereunder except as may be authorized in the discretion of
the Committee. A grant under this Plan will not constitute or be evidence of any
agreement or understanding, expressed or implied, that the Company will employ a
Participant for any specified period of time, in any specific position or at any
particular rate of remuneration.

14.      AMENDMENT OR TERMINATION OF PLAN

         Subject to Board approval, the Committee may at any time, and from time
to time, alter, amend, suspend or terminate this Plan without the consent of the
Company's shareholders, APLP's unitholders, or Participants, except that any
such alteration, amendment, suspension or termination will be subject to the
provisions of the APLP Partnership Agreement and to the approval of the
Company's shareholder within one year after such Committee and Board action if
such shareholder approval is required by any federal or state law or regulation
or the rules of any stock exchange or automated quotation system on which the
Units are then listed or quoted, or if the Committee in its discretion
determines that obtaining such shareholder approval is for any reason advisable.
No termination or amendment of this Plan may, without the consent of the
Participant to whom any Restricted Unit has previously been granted, adversely
affect the rights of such Participant under such Restricted Unit, including any
Restricted Unit Distribution Equivalents. Notwithstanding the foregoing, the
Committee may make minor amendments to this Plan which do not materially affect
the rights of Participants or significantly increase the cost to the
Partnership.

15.      TAX WITHHOLDING

         Upon the lapse of restrictions on Restricted Units, the Company will
require the recipient to remit to the Company an amount sufficient to satisfy
federal, state and local withholding tax requirements. However, to the extent
authorized by rules and regulations of the Administrative Committee, the Company
may withhold Units and make cash payments in respect thereof in satisfaction of
a recipient's tax obligations in an amount that does not exceed the recipient's
minimum applicable withholding tax obligations.

16.      GOVERNMENTAL APPROVAL

         Each grant of Restricted Units will be subject to the requirement that
if at any time the listing, registration or qualification of the Units covered
thereby upon any securities exchange, or under any state or federal law, or the
consent or approval of any governmental regulatory body, is

                                       9
<PAGE>
necessary or desirable as a condition of or in connection with the awarding of
such grant of Restricted Units, then no such grant may be paid in whole or in
part unless and until such listing, registration, qualification, consent or
approval has been effected or obtained free of any conditions not acceptable to
the Board.

17.      EFFECTIVE DATE OF PLAN

         17.1 This Plan will become effective as of January 1, 2000, subject to
approval by the Company's shareholder.

         17.2 Shareholder Approval for "Qualified Performance-Based
Compensation." This Plan must be reapproved by the shareholder of the Company no
later than the first meeting of shareholders that occurs in the fifth year
following the year in which the shareholders previously approved the provisions
of Section 9, if required by Section 162(m) of the Code or the regulations
thereunder.

18.      SUCCESSORS

         This Plan will be binding upon and inure to the benefit of APLP, the
General Partner, their successors and assigns and the Participant and his heirs,
executors, administrators and legal representatives.

19.      HEADINGS AND CAPTIONS

         The headings and captions herein are provided for reference and
convenience only, shall not be considered part of the Plan, and shall not be
employed in the construction of the Plan.

20.      GOVERNING LAW

         The validity, construction, interpretation and effect of the Plan will
be governed exclusively by and determined in accordance with the law of the
Commonwealth of Pennsylvania.

Approved by Shareholder of AmeriGas Propane, Inc. on December 13, 1999.

                                       10

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