Exhibit 10.19

FOURTH AMENDMENT AND WAIVER

FOURTH AMENDMENT AND WAIVER, dated as of December 28, 2006 (this “Amendment”),
to the Credit Agreement, dated as of December 17, 2004 (as amended by the First
Amendment, dated as of November 2, 2005, the Second Amendment, dated as of
February 3, 2006, the Third Amendment, dated as of October 30, 2006, this
Amendment and as the same may be further amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among PETROLEUM HEAT AND
POWER CO., INC., a Minnesota corporation (the “Borrower”), the other Loan
Parties party thereto, the several lenders from time to time parties thereto
(collectively, the “Lenders”), JPMORGAN CHASE BANK, N.A., as an LC Issuer and as
Agent (in such capacity, the “Agent”), BANK OF AMERICA, N.A. and WACHOVIA BANK,
NATIONAL ASSOCIATION, as co-syndication agents, and CITIZENS BANK OF
MASSACHUSETTS and GENERAL ELECTRIC CAPITAL CORPORATION, as co-documentation
agents.

W I T N E S S E T H :

WHEREAS, the Borrower has requested that the Lenders amend and waive certain
terms in the Credit Agreement in the manner provided for herein; and

WHEREAS, the Lenders are willing to agree to the requested amendments and
waivers;

NOW, THEREFORE, in consideration of the premises contained herein, the parties
hereto agree as follows:

1. Defined Terms. Unless otherwise defined herein, terms which are defined in
the Credit Agreement and used herein (and in the recitals hereto) as defined
terms are so used as so defined.

2. Amendments to Article I of the Credit Agreement. Article I of the Credit
Agreement is hereby amended by adding the following new definitions in the
proper alphabetical order:

“Financial Restatement” means the restatement of the consolidated financial
statements of the Parent and its Subsidiaries for each of the fiscal years ended
September 30, 2004 and September 30, 2005, including the consolidated financial
statements for each quarterly period included therein, and the restatement of
the consolidated financial statements for the first three quarterly periods of
the fiscal year ended September 30, 2006, in each case in order to (a) recognize
the change in the fair values of derivative assets and liabilities in the
current period and (b) make such other changes that do not result in a failure
to satisfy the Financial Restatement Condition.

“Financial Statement Completion Date” means the date on which the consolidated
financial statements of the Parent for the fiscal year ended September 30, 2006
and the Financial Restatement, together with the certificates and reports
required to be delivered pursuant to Section 6.1(a), have, in each case, been
delivered, and any Reporting Violations (as defined in the Fourth Amendment)
have been cured.

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“Financial Restatement Condition” means the condition that the Financial
Restatement does not decrease the cash generated from operations as reflected on
the consolidated statement of cash flows of the Parents and its Subsidiaries in
accordance with GAAP for any of the fiscal years ended September 30, 2004,
September 30, 2005 and September 30, 2006 or for any of the quarterly periods
included therein.

“Fourth Amendment” means the Fourth Amendment and Waiver, dated as of
December 28, 2006, to this Agreement.

3. Amendment to Section 2.1 of the Credit Agreement. Section 2.1 of the Credit
Agreement is hereby amended to add the following proviso at the end of the first
sentence thereof:

“, provided further, that the Aggregate Credit Exposure between the Amendment
Effective Date (as defined in the Fourth Amendment) and the Financial Statement
Completion Date shall not exceed $ 119,000,000.”

4. Amendment to Section 5.5(a) of the Credit Agreement. Section 5.5(a) of the
Credit Agreement hereby is amended to add, at the end of the last sentence
thereof, the following:

“, and, in each case, subject to any changes that may result from the Financial
Restatement (provided that any such changes comply with the Financial
Restatement Condition).”

5. Amendment to Section 5.11 of the Credit Agreement. Section 5.11 of the Credit
Agreement is amended to add, at the end of the last sentence thereof, the
following:

“, and, in each case, subject to any changes that may result from the Financial
Restatement (provided that any such changes comply with the Financial
Restatement Conditions).”

6. Amendment to Section 6.1 of the Credit Agreement. Section 6.1 of the Credit
Agreement is hereby amended to add the following proviso at the end of the first
sentence thereof:

“, provided, that, with respect to period ended September 30, 2006, such
financial statements and certificate, as of the end of and for the fiscal year
ended September 30, 2006, may be delivered later than otherwise required
hereunder, but (i) shall be delivered as soon as available upon completion of
the Financial Restatement, but in any event not later than February 15, 2007,
(ii) such financial statements shall be accompanied by the Financial
Restatement, (iii) such financial statements and Financial Restatement shall be
delivered together with a certificate of the Borrower’s chief financial officer,
certifying that (A) the financial statements and Financial Restatement present
fairly, in all material respects, the financial condition and results of
operations of the Borrower and its Restricted Subsidiaries, in each case on a
consolidated basis in accordance with GAAP consistently applied, and (B) the
Financial Restatement complies with the Financial Restatement Condition and
(iv) the

 

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Financial Restatement shall be delivered together with or shall include a report
by independent public accountants of recognized national standing (without a
“going concern” or like qualification or exception and without any qualification
or exception as to the scope of such audit) to the effect that such portion of
the Financial Restatement covering the fiscal year ended September 30, 2005
presents fairly, in all material respects, the financial condition and results
of operations of the Borrower and its Restricted Subsidiaries, in each case on a
consolidated basis in accordance with GAAP.”

7. General Amendment and Waiver. The undersigned Lenders hereby waive any
Default arising under clause (a) of Article VII of the Credit Agreement to the
extent, but only to the extent, any such Default results from an incorrect
representation under Section 5.5 or 5.11 made prior to the Amendment Effective
Date (as defined below), but only to the extent such representation was
incorrect when made as a result of changes made pursuant to the Financial
Restatement that comply with the Financial Restatement Condition. The
undersigned Lenders hereby waive any Default arising under clause (c) of
Article VII of the Credit Agreement to the extent, but only to the extent, any
such Default results from a failure to comply with Section 6.1 prior to the
Amendment Effective Date (as defined below), but only to the extent such failure
to comply was a result of changes made pursuant to the Financial Restatement
that comply with the Financial Restatement Condition. The undersigned Lenders
hereby waive any Default arising under clause (e) of Article VII of the Credit
Agreement in relation to the Parent Indentures, the Parent Notes or any Parent
Subordinated Debt, to the extent, but only to the extent, any such Default
results from a Reporting Violation (as defined below); provided, that such
waiver shall terminate and cease to apply if (i) any Parent Notes or Parent
Subordinated Debt becomes due, or is declared to become due, or is required to
be prepaid, repurchased, redeemed or defeased, prior to its stated maturity, in
any such case as a result of a Reporting Violation, or (ii) the holder or
holders of any Parent Notes or Parent Subordinated Debt (or the requisite number
or percentage in interest entitled to do so under the terms thereof, if
applicable), or any trustee or agent on its or their behalf, (A) gives notice to
the Borrower or any Subsidiary of a Reporting Violation, if the effect of such
notice is to commence a grace or cure period upon the expiration of which any
right or remedy may be exercised if the Reporting Violation is continuing, or
(B) otherwise commences any proceeding with respect to the exercise of any
material rights or remedies (as determined by the Required Lenders) that may be
exercised based upon a Reporting Violation. A “Reporting Violation” means any
failure to comply with any provision of any agreement or instrument evidencing
or governing the terms of the Parent Notes or Parent Subordinated Debt that
require the filing of financial statements or the filing by the Borrower of
reports (or delivery of reports required to be filed by it) with the Securities
and Exchange Commission, to the extent such non-compliance results from the
failure to deliver audited financial statements with respect to the period ended
September 30, 2006, within the time required. Neither the Borrower shall, nor
shall the Borrower permit the Parent or any Subsidiary to, give any
consideration to or for the benefit of any holder of Parent Notes or Parent
Subordinated Debt for any amendment, modification or waiver relating to a
Reporting Violation.

8. Restriction on Dividends. Notwithstanding anything to the contrary in
Section 6.16 of the Credit Agreement, the Borrower shall not pay any dividends
after the date hereof and prior to the Financial Statement Completion Date.

 

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9. Representations and Warranties. On and as of the date hereof, each of the
Borrower and the other Loan Parties hereby confirms, reaffirms and restates in
all material respects the representations and warranties set forth in Article V
of the Credit Agreement, except to the extent that such representations and
warranties expressly relate to a specific earlier date in which case the
Borrower or such Loan Party hereby confirms, reaffirms and restates such
representations and warranties as of such earlier date.

10. Effectiveness of Amendment. This Amendment shall become effective (the
“Amendment Effective Date”) upon as of the date of receipt by the Agent of
(a) counterparts of this Amendment duly executed by the Borrower, the other Loan
Parties and each of the Lenders, submitted by facsimile or electronic submission
and (b) all other fees required to be paid, and all expenses for which invoices
have been presented (including the reasonable fees and expenses of legal
counsel) in connection with the preparation and delivery of this Amendment,
including, without limitation, the reasonable fees and disbursements of counsel
to the Agent.

11. Reference to and Effect on Loan Documents. On and after the Amendment
Effective Date, (i) each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Credit Agreement,
and each reference in the other Loan Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit
Agreement, shall mean and be a reference to the Credit Agreement as amended
hereby. Except as expressly amended herein, all of the provisions of the Credit
Agreement and the other Loan Documents are and shall remain in full force and
effect in accordance with the terms thereof and are hereby in all respects
ratified and confirmed. The execution, delivery and effectiveness of this
Amendment shall not be deemed to be a waiver of, or consent to, or a
modification or amendment of, any other term or condition of the Credit
Agreement or any other Loan Document or to prejudice any other right or rights
which the Agent or the Lenders may now have or may have in the future under or
in connection with the Credit Agreement or any of the instruments or agreements
referred to therein, as the same may be amended from time to time.

12. Expenses. The Borrower agrees to pay and reimburse the Agent for all its
reasonable costs and out-of-pocket expenses incurred in connection with the
preparation and delivery of this Amendment, including, without limitation, the
reasonable fees and disbursements of counsel to the Agent.

13. Counterparts. This Amendment may be executed in any number of counterparts
by the parties hereto (including by facsimile transmission), each of which
counterparts when so executed shall be an original, but all the counterparts
shall together constitute one and the same instrument.

14. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered by their respective duly authorized officers as of the date first
above written.

 

BORROWER: PETROLEUM HEAT AND POWER CO., INC. By:  

 

Name:  

 

Title:  

 

OTHER LOAN PARTIES:

STAR GAS FINANCE COMPANY

KESTREL HEAT, LLC

STAR/PETRO, INC.

PETRO HOLDINGS, INC.

MEENAN OIL CO., INC.

MEENAN HOLDINGS OF NEW YORK, INC.

REGIONOIL PLUMBING, HEATING AND COOLING CO., INC.

PETRO PLUMBING CORPORATION

MAXWHALE CORP.

ORTEP OF PENNSYLVANIA, INC.

RICHLAND PARTNERS, LLC

COLUMBIA PETROLEUM TRANSPORTATION, LLC

PETRO, INC.

MAREX CORPORATION

A.P. WOODSON COMPANY By:  

 

Name:  

 

Title:  

 

STAR GAS PARTNERS, L.P. By: KESTREL HEAT, LLC, its General Partner By:  

 

Name:  

 

Title:  

 

 

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MEENAN OIL CO. L.P. By: MEENAN OIL CO., INC., its General Partner By:  

 

Name:  

 

Title:  

 

 

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  JPMORGAN CHASE BANK, N.A.., as an LC Issuer,       Agent, Collateral Agent and
Lender   By:  

 

  Name:  

 

  Title:  

 

 

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BANK OF AMERICA, N.A., as Lender By:  

 

Name:  

 

Title:  

 

 

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WACHOVIA BANK, NATIONAL ASSOCIATION, as Lender By:  

 

Name:  

 

Title:  

 

 

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GENERAL ELECTRIC CAPITAL CORPORATION, as Lender By:  

 

Name:  

 

Title:  

 

 

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CITIZENS BANK OF MASSACHUSETTS, as Lender By:  

 

Name:  

 

Title:  

 

 

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WELLS FARGO FOOTHILL, LLC, as Lender By:  

 

Name:  

 

Title:  

 

 

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SOCIETE GENERALE, as Lender By:  

 

Name:  

 

Title:  

 

 

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LASALLE BANK NATIONAL ASSOCIATION, as LC Issuer and Lender By:  

 

Name:  

 

Title:  

 

 

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ALLIED IRISH BANKS, P.L.C., as Lender By:  

 

Name:  

 

Title:  

 

 

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PNC BANK, NATIONAL ASSOCIATION, as Lender By:  

 

Name:  

 

Title:  

 

 

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CITIBANK, N.A., as Lender By:  

 

Name:  

 

Title:  

 

 

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ISRAEL DISCOUNT BANK OF NEW YORK, as Lender By:  

 

Name:  

 

Title:  

 

By:  

 

Name:  

 

Title:  

 

 

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RZB FINANCE LLC, as Lender By:  

 

Name:  

 

Title:  

 

By:  

 

Name:  

 

Title:  

 

 

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BANK LEUMI USA, as Lender By:  

 

Name:  

 

Title:  

 

By:  

 

Name:  

 

Title:  

 

 

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