Exhibit 10.3

AMENDMENT NO. 2

TO

CREDIT AGREEMENT

THIS AMENDMENT NO. 2 TO CREDIT AGREEMENT (this “Second Amendment”) dated as of
January 12, 2012, is by and among AMERIGAS PROPANE, L.P., a Delaware limited
partnership (the “Borrower”), AMERIGAS PROPANE, INC., a Pennsylvania corporation
(the “General Partner”), the lenders from time to time party to the Credit
Agreement (collectively, the “Lenders”; individually, a “Lender”) and WELLS
FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (the
“Agent”).

WITNESSETH:

WHEREAS, the Borrower, the General Partner, the Agent, and the Lenders are
parties to that certain Credit Agreement dated as of June 21, 2011 (as in effect
on the date hereof and amended, supplemented or otherwise modified from time to
time in accordance with its terms, the “Credit Agreement”; terms used herein but
not otherwise defined shall have the meanings ascribed to such terms in the
Credit Agreement);

WHEREAS, the Borrower and the General Partner have requested that the Agent and
the Lenders agree to revise the Credit Agreement to, among other things:
(a) increase the Revolving Credit Commitments by up to $200,000,000 (the
“Increased Commitments”) to an aggregate amount of $525,000,000, (b) extend the
Revolving Credit Maturity Date to October 15, 2016, and (c) amend certain other
provisions of the Credit Agreement to provide for the acquisition (the
“Acquisition”) of Heritage Propane L.P. (“Heritage”) and Titan Propane, L.P.
(“Titan”);

WHEREAS, in connection with the Acquisition, AmeriGas Finance LLC and AmeriGas
Finance Corp., each a Subsidiary of the MLP, have issued up to $1,550,000,000 of
senior unsecured notes (the “Financing Notes”) to finance the Acquisition (the
“Heritage Financing”); and

WHEREAS, the Agent and the Lenders have agreed to make such revisions on the
terms and conditions set forth in this Second Amendment;

NOW THEREFORE, the parties hereto hereby agree as follows:

Section 1. Amendment. Subject to the satisfaction of the conditions precedent
specified in Section 3 below, but effective as of the date hereof, the Credit
Agreement shall be amended as follows:

 

  1.01.

Definitions.

 

  (a)

Section 1.1 of the Credit Agreement shall be amended as follows:

 

  (i)

The definition of “Consolidated EBITDA” shall be deleted in its entirety and
replaced with the following:

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“means, for any period, the sum of the following determined on a Consolidated
basis, without duplication, for any Person and its Subsidiaries in accordance
with GAAP: (a) Consolidated Net Income for such period plus (b) the sum of the
following, without duplication, to the extent deducted in determining
Consolidated Net Income: (i) Consolidated Interest Expense, (ii) Consolidated
Income Tax Expense, and (iii) depreciation and amortization of property, plant
and equipment and intangible assets, in each case for such period, plus (c) any
transaction costs associated with the Heritage Acquisition in an amount not to
exceed $60,000,000 in the aggregate during the first eight (8) fiscal quarters
following the date of the Heritage Acquisition, plus (d) synergies anticipated
to result from the Heritage Acquisition in the amount of up to (i) $50,000,000
for the period ending September 30, 2011, the period ending December 31, 2011,
the period ending March 31, 2012 and the period ending June 30, 2012,
(ii) $32,200,000 for the period ending September 30, 2012, and (iii) $20,600,000
for the period ending December 31, 2012. For purposes of the Consolidated MLP
Total Leverage Ratio and the Consolidated Borrower Total Leverage Ratio,
Consolidated EBITDA (x) shall be adjusted on a Pro Forma Basis for (1) any
Permitted Acquisition which is in excess of $25,000,000 or (2) Asset
Dispositions which, individually or in the aggregate, are in excess of
$25,000,000 and (y) may be adjusted on a Pro Forma Basis for any Permitted
Acquisition which individually is less than $25,000,000 but, when taken together
with all other Permitted Acquisitions, is in excess of $25,000,000.”

 

  (ii)

The definition of “L/C Commitment” shall be deleted in its entirety and replaced
with the following:

“means the lesser of (a) ONE HUNDRED AND TWENTY-FIVE MILLION DOLLARS
($125,000,000) and (b) the Revolving Credit Commitment.”

 

  (iii)

The definition of “Permitted Acquisition” shall be revised as follows:

 

  (1)

Deleting “and” from the end of subsection (d);

 

  (2)

Deleting the period from the end of subsection (e) and substituting “; and” in
its place; and

 

  (3)

Adding a new subsection (f) to the end of the definition as follows:

“(f) the acquisition of Heritage Propane, L.P. and Titan Propane, L.P.
(together, “Heritage”) directly or indirectly by the Borrower.”

 

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  (iv)

The definition of Revolving Credit Maturity Date shall be deleted in its
entirety and replaced with the following:

“means the earliest to occur of (a) October 15, 2016, (b) the date of
termination of the entire Revolving Credit Commitment by the Borrower pursuant
to Section 2.5, or (c) the date of termination of the Revolving Commitment
pursuant to Section 12.2(a).”

 

  (v)

The following shall be added in its proper alphabetical place:

“Heritage” has the meaning given to such term in clause (f) of the definition of
“Permitted Acquisition.”

“Heritage Acquisition” means the acquisition by the Borrower directly or
indirectly of Heritage.

“Heritage Note Purchase Agreements” has the meaning given to such term in
Section 11.1(p).

“Heritage Notes” has the meaning given to such term in Section 11.1(p).

 

  1.02.

Financial Covenants

 

  (a)

Section 10.1 shall be deleted in its entirety and replaced with the following:

“(a) As of the end of each fiscal quarter through the fiscal quarter ending
June 30, 2012, permit the Consolidated MLP Total Leverage Ratio to be greater
than 5.25 to 1.00 and (b) as of the end of any fiscal quarter after the fiscal
quarter ending June 30, 2012, permit the Consolidated MLP Total Leverage Ratio
to be greater than 5.00 to 1.00.”

 

  1.03.

Limitations on Indebtedness

 

  (a)

Section 11.1 shall be amended as follows:

 

  (1)

Deleting “and” from the end of subsection (n);

 

  (2)

Deleting the period from the end of subsection (o) and substituting “; and” in
its place; and

 

  (3)

Adding a new subsection (p) to the end of the definition as follows:

“(p) Secured Indebtedness under those certain notes (the “Heritage Notes”)
issued pursuant to those certain Note Purchase Agreements, dated as of
November 19, 1997 and August 10, 2000, each between Heritage Operating, L.P. and
the

 

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purchasers named therein (as amended, the “Heritage Note Purchase Agreements”)
in the aggregate principal amount not to exceed $71,300,000.”

 

  1.04.

Limitations on Liens

 

  (a)

Section 11.2 shall be amended as follows:

 

  (1)

Deleting “and” from the end of subsection (q);

 

  (2)

Deleting the period from the end of subsection (r) and substituting “; and” in
its place; and

 

  (3)

Adding a new subsection (s) to the end of the definition as follows:

“(s) Liens in effect on the date hereof securing the Heritage Notes permitted
pursuant to Section 11.1(p).”

 

  1.05.

No Further Negative Pledges; Restrictive Agreements.

 

  (a)

Section 11.10(a) shall be amended as follows:

 

  (1)

Adding “except for the Heritage Note Purchase Agreements” at the end of the
paragraph.

 

  (b)

Section 11.10(b) shall be amended as follows:

 

  (1)

Deleting “and” from the end of subclause (G);

 

  (2)

Deleting the period from the end of subclause (H) and substituting “and” in its
place; and

 

  (3)

Adding a new subclause (I) to the end of the paragraph as follows:

“(I) the Heritage Note Purchase Agreements.”

 

  1.06.

Schedules

 

  (a)

The Schedules to the Credit Agreement shall be amended and restated in their
entirety with the Schedules provided by the Borrower no later than thirty
(30) days from the date hereof. Such Schedules shall be true and correct as of
the date on which they are provided and each reference in the Credit Agreement
to the Closing Date made in connection with a disclosure which references the
Schedules shall be deemed a reference to the date on which such amended and
restated Schedules are delivered.

Section 2. Representations and Warranties. The Borrower and the General Partner
represent and warrant to the Agent and each Lender that:

 

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(a) It has taken all necessary action to authorize the execution, delivery and
performance of this Second Amendment.

(b) This Second Amendment has been duly executed and delivered by the Borrower
or General Partner, as applicable, and constitutes its legal, valid and binding
obligation, enforceable in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency, moratorium or
similar laws affecting creditors’ rights generally and (ii) general principles
of equity (regardless of whether such enforceability is considered in a
proceeding at law or in equity).

(c) 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 Second Amendment.

(d) The representations and warranties set forth in Article VII of the Credit
Agreement (in the case of Sections 7.1 through 7.27, relating to the Borrower
and the Subsidiary Guarantors and in the case of Sections 7.1 through 7.6, 7.9
through 7.11, 7.21, 7.22, 7.23, 7.25, 7.27 and 7.28, relating to the General
Partner) are true and correct in all material respects on the date hereof as if
made on and as of the date hereof (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) and as if each reference in said Article VII to “this Agreement” includes
reference to this Second Amendment and the Credit Agreement as amended by this
Second Amendment; provided, however, with respect to any representation or
warranty which references a Schedule, such representation and warranty shall be
true and correct in all material respects on the date such Schedule is delivered
pursuant to Section 1.06 hereof.

(e) There has occurred since September 30, 2011, no event or circumstance that
has resulted in, or presents a reasonable likelihood of having, a Material
Adverse Effect.

(f) No Default or Event of Default under the Credit Agreement has occurred and
is continuing on the date hereof (before and after giving effect to the Second
Amendment).

(g) There are no set-offs or defenses against the Notes, the Credit Agreement as
amended by this Second Amendment or any other Loan Document.

(h) Heritage Operating, L.P. is a Material Subsidiary and has become a party to
the Guaranty Agreement; provided, that its guaranty shall be limited to the
amount it is permitted to incur under the Heritage Notes as long as the Heritage
Notes remain outstanding.

(i) Titan Propane LLC is a Material Subsidiary and has become a party to the
Guaranty Agreement.

Section 3. Conditions Precedent. The effectiveness of this Second Amendment is
subject to the satisfaction of the following conditions precedent:

3.01. Execution. This Second Amendment shall have been executed and delivered by
the Borrower, the General Partner, the Agent and the Lenders, and the Consent

 

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attached hereto (the “Consent”) shall have been executed and delivered by each
Subsidiary Guarantor.

3.02. Officer’s Certificate. A certificate from a Responsible Officer of the
General Partner to the effect that (A) all representations and warranties of the
Credit Parties contained in the Credit Agreement, this Second Amendment and the
other Loan Documents are true, correct and complete in all material respects
(except for those representations and warranties that are already qualified by
materiality or Material Adverse Effect, which shall be true, correct and
complete in all respects); (B) none of the Credit Parties is in violation of any
of the covenants contained in the Credit Agreement and the other Loan Documents;
(C) after giving effect to the transactions contemplated by this Second
Amendment, no Default or Event of Default has occurred and is continuing; and
(D) to the extent the Borrower requests a Loan on the date hereof, that each of
the Credit Parties, as applicable, has satisfied each of the conditions set
forth in Section 6.2 of the Credit Agreement.

3.03. Certificate of Secretary of each Credit Party. A certificate of the
Secretary or Assistant Secretary of the General Partner certifying as to the
incumbency and genuineness of the signature of each officer of the General
Partner executing (or other Person authorized by the General Partner to execute)
Loan Documents to which it or the Borrower is a party and certifying that
attached thereto is a true, correct and complete copy of (A) the articles or
certificate of incorporation or formation of the General Partner and the
Borrower and all amendments thereto, certified as of a recent date by the
appropriate Governmental Authority in their respective jurisdictions of
incorporation or formation, (B) the bylaws or other governing document of the
General Partner and the Borrower as in effect on the date hereof,
(C) resolutions duly adopted by the board of directors (or other governing body)
of the General Partner authorizing the transactions contemplated hereunder and
the execution, delivery and performance of this Agreement and the other Loan
Documents to which the General Partner and the Borrower are a party, and (D) to
the extent the Borrower requests a Loan on the date hereof, each certificate
required to be delivered pursuant to Section 6.1(b)(iii) of the Credit
Agreement.

3.04. Certificates of Good Standing. Certificates as of a recent date of the
good standing of each Credit Party under the laws of its jurisdiction of
organization.

3.05. Opinions of Counsel. A favorable opinion of Morgan, Lewis & Bockius, LLP
addressed to the Agent and the Lenders with respect to the Credit Parties, the
Second Amendment, the Loan Documents and such other matters as the Agent or its
counsel shall request.

3.06. Ownership of the General Partner and the Borrower. The organizational
structure and corporate structure of the General Partner, the Borrower and their
respective Subsidiaries shall be as previously disclosed to the Agent which
shall be set forth on Schedule 7.2 as amended and delivered in accordance with
Section 1.06 hereof.

3.07. Financial Statements. The Agent shall have received (A) the audited
consolidated financial statements of MLP, the Borrower and their respective
Subsidiaries for the fiscal year ended September 30, 2011 and (B) the unaudited
consolidated financial statements of Heritage and Titan and their respective
Subsidiaries for the fiscal year ended December 31, 2010

 

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and interim unaudited financial statements of Heritage and Titan for each
quarterly period ended since the last audited financial statements through
September 30, 2011, in each case, on either a combined or on a stand-alone
basis.

3.08. Pro Forma Financial Statements. The Agent shall have received pro forma
consolidated financial statements for the MLP and its Subsidiaries for the
four-quarter period most recently ended prior to the issuance of the Financing
Notes (for which financial statements are available) calculated on a Pro Forma
Basis after giving effect to this Second Amendment and the Acquisition (prepared
in accordance with Regulation S-X under the Securities Act of 1933, as amended,
and all other rules and regulations of the SEC under such Securities Act) and a
pro forma balance sheet of the MLP and its Subsidiaries as of such date giving
pro forma effect to the Second Amendment and the Acquisition.

3.09. Financial Projections. The Agent shall have received (A) projections
prepared by management of the General Partner, of balance sheets, income
statements and cash flow statements of MLP and its Subsidiaries on a quarterly
basis for Fiscal Year 2012 and (B) projections prepared by management of the
General Partner, of balance sheets, income statements and cash flow statements
of MLP and its Subsidiaries on an annual basis for Fiscal Year 2012, Fiscal Year
2013, Fiscal Year 2014 and Fiscal Year 2015.

3.10. Acquisition. The Agent shall have received a copy of the Contribution and
Redemption Agreement by and among Energy Transfer Partners, L.P., Energy
Transfer Partners GP, L.P., Heritage ETC, L.P. and the MLP dated as of
October 15, 2011 executed in connection with the Acquisition and as filed with
the SEC (the “Acquisition Agreement”) and all schedules thereto and the MLP
shall, simultaneously with the execution of this Second Amendment, consummate
the Acquisition in accordance with the terms and conditions of the Acquisition
Agreement without any waiver, modification or consent thereunder materially
adverse to the Lenders unless approved by the Agent, which approval shall not be
unreasonably withheld or delayed.

3.11. Heritage Financing. The MLP, directly or indirectly, shall have
consummated the Heritage Financing on terms and conditions substantially similar
to the existing outstanding notes of the MLP.

3.12. Other Documents. All opinions, certificates and other instruments and all
proceedings in connection with the transactions contemplated by this Agreement
shall be reasonably satisfactory in form and substance to the Agent. The Agent
shall have received copies of all other documents, certificates and instruments
reasonably requested thereby, with respect to the transactions contemplated by
this Agreement.

3.13. Patriot Act. The MLP, the Borrower and each of the Subsidiary Guarantors
shall have provided to the Agent and the Lenders the documentation and other
information requested by the Agent in order to comply with requirements of the
Act.

3.14. Payment at Closing. The Borrower shall have paid (A) to the Agent, the
Arranger and the Lenders the fees set forth or referenced in that certain Fee
Letter dated as of November 7, 2011 and executed by the Borrower and the General
Partner and any other

 

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invoiced, accrued and unpaid fees or commissions due and (B) all reasonable and
documented fees, charges and disbursements of counsel to the Agent (directly to
such counsel if requested by the Agent) to the extent invoiced, accrued and
unpaid prior to or on the date hereof.

Section 4. General. References (i) in the Credit Agreement (including references
to the Credit Agreement as amended hereby) to “this Agreement” (and indirect
references such as “hereunder,” “hereof” and words of like import referring to
the Credit Agreement), and (ii) in the other Loan Documents to “the Credit
Agreement” and “the Agreement” (and indirect references such as “thereunder,”
“thereof” and words of like import referring to the Credit Agreement) shall be
deemed to be references to the Credit Agreement as amended by this Second
Amendment.

Section 5. Miscellaneous. Except as herein provided, the Credit Agreement and
all other Loan Documents shall remain unchanged and shall continue to be in full
force and effect and are hereby ratified and confirmed in all respects. This
Second Amendment may be executed in any number of counterparts, all of which
taken together shall constitute one and the same amendatory instrument, and any
of the parties hereto may execute this Second Amendment by signing any such
counterpart. Delivery of an executed counterpart of a signature page to this
Second Amendment by telefacsimile or by email in portable document format
(“.pdf”) shall constitute delivery of a manually executed counterpart of this
Second Amendment. This Second Amendment shall be governed by, and construed in
accordance with, the law of the State of New York.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be
duly executed and delivered as of the day and year first above written.

 

BORROWER:

 

AMERIGAS PROPANE, L.P.

By:  

AMERIGAS PROPANE, INC.,

 

as General Partner

By:  

/s/ John S. Iannarelli

  Name:   John S. Iannarelli   Title:  

Vice President – Finance and

Chief Financial Officer

 

GENERAL PARTNER:

 

AMERIGAS PROPANE, INC.

By:  

/s/ John S. Iannarelli

  Name:  

John S. Iannarelli

  Title:  

Vice President – Finance and

Chief Financial Officer

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Agent and as a Lender

By:  

/s/ Frederick W. Price

 

Name: Frederick W. Price

  Title: Managing Director

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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BRANCH BANKING AND TRUST COMPANY,

as a Lender

By:  

/s/ Glenn A. Page

  Name: Glenn A. Page   Title: Senior Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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CITIBANK, N.A.,

as a Lender

By:  

/s/ John Miller

 

Name: John Miller

  Title: Vice President

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JPMORGAN CHASE BANK, N.A.,

as a Lender

By:  

/s/ Helen D. Davis

 

Name: Helen D. Davis

  Title: Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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PNC BANK, NATIONAL ASSOCIATION,

as a Lender

By:  

/s/ Meredith Jermann

 

Name: Meredith Jermann

  Title: Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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CITIZENS BANK OF PENNSYLVANIA,

as a Lender

By:  

/s/ Leslie D. Broderick

 

Name: Leslie D. Broderick

  Title: Senior Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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THE BANK OF NEW YORK MELLON,

as a Lender

By:  

/s/ Richard K. Fronapfel, Jr.

 

Name: Richard K. Fronapfel, Jr.

  Title: Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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COMPASS BANK,

as a Lender

By:  

/s/ David C. Moriniere

 

Name: David C. Moriniere

  Title: Senior Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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MANUFACTURERS AND TRADERS TRUST COMPANY, as a Lender By:  

/s/ Tracey E. Sawyer-Calhoun

 

Name: Tracey E. Sawyer-Calhoun

  Title: Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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SOVEREIGN BANK,

as a Lender

By:  

/s/ Robert D. Lanigan

 

Name: Robert D. Lanigan

  Title: Senior Vice President

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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TD BANK, N.A.,

as a Lender

By:  

/s/ Shannon Batchman

 

Name: Shannon Batchman

  Title: Director

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender By:  

/s/ Bill O’Daly

 

Name: Bill O’Daly

  Title: Director

 

By:  

/s/ Sanja Gazahi

 

Name: Sanja Gazahi

  Title: Associate

 

Signature Page

to

Amendment No. 2 to Credit Agreement

(AmeriGas Propane, L.P.)

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SCHEDULE 1.1-2

REVOLVING CREDIT COMMITMENTS

 

September 30,

Revolving Credit Lender

     Revolving Credit Commitment  

Wells Fargo Bank, National Association

     $ 80,000,000   

Branch Banking and Trust Company

     $ 40,000,000   

Citibank, N.A.

     $ 40,000,000   

JPMorgan Chase Bank, N.A.

     $ 67,500,000   

PNC Bank, National Association

     $ 50,000,000   

Citizens Bank of Pennsylvania

     $ 50,000,000   

The Bank of New York Mellon

     $ 30,000,000   

Compass Bank

     $ 25,000,000   

Manufacturers and Traders Trust Company

     $ 25,000,000   

Sovereign Bank

     $ 25,000,000   

TD Bank, N.A.

     $ 25,000,000   

Credit Suisse AG, Cayman Islands Branch

     $ 67,500,000   

TOTAL

     $ 525,000,000