Document:

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                         REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into as of April 19, 2002, by and among Blue Rhino Corporation, a
Delaware corporation (the "Company"), and those persons named on Schedule 1
hereto (the "Purchasers").

         This Agreement is made pursuant to the Stock Purchase Agreement, dated
as of April 19, 2002 (the "Stock Purchase Agreement"), by and between the
Company and the Purchasers, pursuant to which the Company has agreed to issue
and sell 1,500,000 shares of its common stock, $0.001 par value per share (the
"Common Stock" or the "Shares"), to the Purchasers. The Shares are being
offered and sold to the Purchasers without registration under the Securities
Act of 1933, as amended (the "Securities Act"), in reliance upon the exemption
from registration provided by Section 4(2) of the Securities Act and the
provisions of Rule 506 of Regulation D promulgated under the Securities Act. In
order to induce the Purchasers to enter into the Stock Purchase Agreement, the
Company has agreed to provide to the Purchasers (and their direct and indirect
transferees, if any) the registration rights set forth in this Agreement with
respect to the resale of the Shares. The execution and delivery of this
Agreement is a condition to the Closing under the Stock Purchase Agreement.
Capitalized terms used but not defined herein shall have the meaning provided
in the Stock Purchase Agreement.

         In consideration of the foregoing premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:

                                   SECTION 1

                              REGISTRATION RIGHTS

         1.1.     FILING OF FORM S-3 RESALE REGISTRATION STATEMENT. As soon as
practicable and within 10 business days after the closing of the sale of Shares
under the Stock Purchase Agreement, the Company shall file with the Securities
and Exchange Commission (the "SEC" or the "Commission") a registration
statement on Form S-3 pursuant to Rule 415 under the Securities Act, or, in the
event that Form S-3 is unavailable to the Company, a registration statement on
such other SEC Form that is available to the Company (together with any
exhibits, amendments or supplements thereto, and any documents incorporated by
reference therein, the "Registration Statement"), with respect to the resale of
the Shares, and, to the extent permitted by Rule 416 under the Securities Act,
any securities of the Company issued as a dividend or other distribution with
respect to, or in exchange for or in replacement of, the Shares. The securities
described in the preceding sentence are collectively referred to herein as the
"Registrable Securities"; provided, that the term "Registrable Securities"
shall not include securities subject to the Registration Statement or
securities transferred to a person other than a permitted transferee.

         1.2.     EFFECTIVENESS OF REGISTRATION STATEMENT. The Company shall,
subject to Section 6 hereof, use its commercially reasonable best efforts to
cause the Registration Statement to become effective within 45 days after the
filing thereof, and shall use its commercially reasonable best efforts to keep
the Registration Statement continuously effective from the date such
Registration Statement becomes effective until the earlier of (i) the date on
which all Securities have been resold under such Registration Statement or Rule
144 under the Securities Act, and (ii) the date on which all Registrable
Securities may be resold without restriction or limitation.

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         1.3.     SUPPLEMENTS; AMENDMENTS. Subject to Section 6 hereof, the
Company shall supplement or amend the Registration Statement, (i) as required
by Form S-3, including, without limitation, the instructions applicable to Form
S-3, or by the Securities Act, the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), or the rules and regulations promulgated under the
Securities Act or the Exchange Act, respectively, and (ii) to include in the
Registration Statement any additional securities that become Registrable
Securities, if required. The Company shall furnish to the holders of the
Registrable Securities, or their permitted transferees (collectively, the
"Holders"), to which the Registration Statement relates copies of any such
supplement or amendment sufficiently in advance of its use and/or filing with
the Commission to allow the Holders a meaningful opportunity to comment thereon
with respect to the information contained therein regarding the Holders and any
plan for resale of the Registrable Securities. Each Holder as of the date
hereof hereby: (i) acknowledges that it has supplied the information regarding
itself and its plan of resale in the Registration Statement; (ii) waives notice
of the initial filing of the Registration Statement; and (iii) agrees that it
and its successors and assigns will promptly notify the Company of any changes
in such information.

                                   SECTION 2

                                    EXPENSES

         The Company shall pay all expenses, fees and costs incurred in
connection with the preparation, filing, distribution and effectiveness of the
Registration Statement and any supplements or amendments thereto, whether or
not the Registration Statement becomes effective, and whether all, none or some
of the Registrable Securities are sold pursuant to the Registration Statement,
including, without limitation, all registration and filing fees, printing
expenses, fees and disbursements of counsel for the Company, fees and state
securities, or "blue sky," fees and expenses, fees and expenses of one counsel
for all the Holders, not to exceed $20,000, and the expense of any special
audits incident to or required by, or in connection with the filing and
effectiveness of the Registration Statement. The Holders shall pay all
underwriting fees and discounts, selling commissions, brokerage fees and stock
transfer taxes applicable to the Registrable Securities sold by such Holder.

                                   SECTION 3

                            REGISTRATION PROCEDURES

         3.1.     REGISTRATION. The Company will, upon request, advise the
Holders as to the status of the preparation, filing and effectiveness of the
Registration Statement and, at the Company's expense, will do the following:

                  (a)      furnish to each Holder a copy of the Registration
         Statement (including all exhibits thereto) and any prospectus forming
         a part thereof and any amendments and supplements thereto (including
         all documents incorporated or deemed incorporated by reference therein
         prior to the effectiveness of the Registration Statement and including
         each preliminary prospectus) and any other prospectus filed under Rule
         424 under the Securities Act, which documents, other than documents
         incorporated or deemed incorporated by reference, will be subject to
         the review of the Holders and any underwriter for a period of at least
         three (3) business days, and the Company shall not file the
         Registration Statement or such prospectus or any amendment or
         supplement to the Registration Statement or prospectus if any Holder
         shall, within three (3) business days after the receipt thereof, have
         given written notice to the Company that such Registration Statement,

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         amendment, prospectus or supplement, as applicable, as proposed to be
         filed, contains a material misstatement or omission with respect to
         such Holder or its plan of resale;

                  (b)      furnish to each Holder one conformed copy of the
         Registration Statement and of each amendment and supplement thereto
         (in each case including all exhibits) and such number of copies of the
         prospectus forming a part of the Registration Statement (including
         each preliminary prospectus) and any other prospectus filed under Rule
         424 under the Securities Act, in conformity with the requirements of
         the Securities Act, and such other documents, including, without
         limitation, documents incorporated or deemed to be incorporated by
         reference prior to the effectiveness of such Registration Statement,
         as each of the Holders or any such underwriter, from time to time may
         reasonably request;

                  (c)      to the extent practicable, following the filing of
         any document that is to be incorporated by reference into the
         Registration Statement or prospectus forming a part thereof subsequent
         to the effectiveness thereof, provide copies of such document to the
         Holders, if requested, and make representatives of the Company
         available for discussion of such document and other customary due
         diligence matters; and provide promptly to the Holders upon request
         any document filed by the Company with the Commission pursuant to the
         requirements of Section 13 and Section 15 of the Exchange Act;

                  (d)      make available at reasonable times for inspection by
         the Holders, and any attorney, accountant, financial adviser or other
         representative (collectively, "Representatives") retained by the
         Holders, subject to the recipient's prior agreement to keep such
         information confidential and not use or disclose it, all financial and
         other records, pertinent corporate documents and properties of the
         Company and cause the officers, directors and employees of the Company
         to supply all information reasonably requested by the Holders or their
         respective Representatives in connection with the preparation, filing
         and effectiveness of the Registration Statement;

                  (e)      use its commercially reasonable best efforts (i) to
         register or qualify all Registrable Securities covered by the
         Registration Statement under state securities, or "blue sky," laws of
         such States of the United States of America where an exemption is not
         available and that the Holders of Registrable Securities covered by
         the Registration Statement shall reasonably request, (ii) to keep such
         registration or qualification in effect for so long as the
         Registration Statement is required to be effective hereunder, and
         (iii) to take any other action which may be reasonably necessary or
         advisable to enable the Holders to consummate the disposition of the
         securities to be sold by the Holders in such jurisdictions, consistent
         with the plan of distribution described in the prospectus included in
         the Registration Statement, except that the Company shall not for any
         such purpose be required to qualify generally to do business as a
         foreign corporation in any jurisdiction where it is not so qualified
         or to execute a general consent to service of process in effecting
         such registration, qualification or compliance;

                  (f)      use its commercially reasonable best efforts to
         cause all Registrable Securities covered by the Registration Statement
         to be registered or qualified with or approved by all other applicable
         Governmental Authorities as may be necessary, in the opinion of
         counsel to the Company and/or a single counsel to the Holders of
         Registrable Securities as a group, to enable the Holders thereof the
         consummate the disposition of such Registrable Securities;

                  (g)      subject to Section 6 hereof, promptly notify each
         Holder of Registrable Securities covered by the Registration
         Statement: (i) upon discovery that, or upon the occurrence of any
         event as a result of which, the prospectus forming a part of the
         Registration Statement, as then in

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         effect, includes an untrue statement of a material fact or omits to
         state any material fact required to be stated therein or necessary to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading; (ii) of the issuance by the
         Commission of any stop order suspending the effectiveness of the
         Registration Statement or the initiation of proceedings for that
         purpose; (iii) of any request by the Commission, after the
         Registration Statement has become effective, for (A) an amendment to
         the Registration Statement or any document incorporated or deemed to
         be incorporated by reference in the Registration Statement, (B) a
         supplement to the prospectus forming a part of the Registration
         Statement, (C) additional information, or (D) of the receipt by the
         Company of any notification with respect to the suspension of the
         registration, qualification or exemption from registration or
         qualification of any of the Registrable Securities for sale in any
         jurisdiction or the initiation of any proceeding for such purpose. At
         the request of any such Holder, the Company shall, if applicable,
         promptly prepare and file an amendment to the Registration Statement
         or a supplement to the prospectus as the Company may deem necessary so
         that, as thereafter delivered to the purchasers of such securities,
         such prospectus shall not include an untrue statement of a material
         fact or omit to state a material fact required to be stated therein or
         necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading; and furnish
         to each Holder a reasonable number of copies of such supplement to, or
         amendment of, such registration statement and prospectus, and, in the
         event of a stop order, use its commercially reasonable best efforts to
         obtain the withdrawal of any order suspending the effectiveness of any
         the Registration Statement, or the lifting of any suspension of the
         qualification (or exemption from qualification) of any of the
         Registrable Securities for sale in any jurisdiction;

                  (h)      if reasonably requested by any Holder or if, in the
         opinion of counsel to the Company, required by law or SEC or other
         applicable rule or regulation, promptly incorporate in the
         Registration Statement such appropriate information as the Holder may
         reasonably request to have included therein by filing a Form 8-K, or
         filing a supplement to the prospectus, to reflect any change in the
         information regarding the Holder, and make all required filings with
         the Commission in respect of any offer or sale of Registrable
         Securities or any amendment or supplement to the Registration
         Statement or related prospectus;

                  (i)      otherwise use its commercially reasonable best
         efforts to comply with all applicable rules and regulations, and make
         available to its security holders, an earnings statement that
         satisfies the provisions of Section 11(a) of the Securities Act and
         Rule 158 promulgated thereunder; and

                  (j)      use its commercially reasonable best efforts to
         cause all Registrable Securities included in the Registration
         Statement to be listed on Nasdaq and each securities exchange on which
         securities of the same class are then listed, or, if not then listed
         on any securities exchange or Nasdaq, to be eligible for trading in
         any over-the-counter market or trading system in which securities of
         the same class are then traded.

         3.2.     UNDERWRITING. If Holders having at least 50% of the
Registrable Securities ("Initiating Holders") intend to distribute the
Registrable Securities covered by their request by means of an underwriting,
the Holders whose shares are to be included in such registration and the
Company shall (together with all other stockholders proposing to distribute
their securities through such underwriting) enter into underwriting and related
agreements in customary form with the representative of the underwriter or
underwriters selected for such underwriting by the Initiating Holders and
reasonably acceptable to the Company. Such underwriting agreement will contain
such representations and

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warranties by the Company and such other terms and provisions as are reasonable
and customary for underwriting agreements with respect to secondary
distributions, including, without limitation, indemnities and contribution, the
provision of opinions of counsel and accountants' letters and the
representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such underwriters shall also be made to and
for the benefit of the Holders. Subject to the foregoing, the Company shall
cooperate fully with the Holders and the underwriters in connection with any
underwritten offering. Notwithstanding any other provision of this Section 3.2,
if the representative of the underwriters advises the Holders in writing that
marketing factors require a limitation on the number of shares to be
underwritten, any securities to be issued by the Company in such distribution
(or contemporaneous distribution other than one covered by Form S-8) shall not
be distributed to the extent reasonably required by such limitation. If, after
the exclusion of such shares, still further reductions are required, the number
of shares included in the underwritten offering by each Holder shall be reduced
on a pro rata basis (based on the number of shares held by such Holder), by
such minimum number of shares as is necessary to comply with such request;
provided, that there shall be no reduction in the number of shares included in
the registration by any Holders until all shares of other stockholders have
been excluded from such underwritten offering. No Registrable Securities or any
other securities excluded from the underwriting by reason of the underwriter's
marketing limitation shall be included in such underwritten offering. If any
other stockholder who has requested inclusion in such distribution as provided
above disapproves of the terms of the underwriting, such person may elect to
withdraw therefrom by written notice to the Company, the underwriter and the
Initiating Holders. The securities so withdrawn shall also be withdrawn from
such underwritten offering. If the underwriter has not limited the number of
Registrable Securities or other securities to be underwritten, the Company and
officers and directors of the Company may include its or their securities for
its or their own account in such registration, if the representative of the
underwriters so agrees and if the number of Registrable Securities and other
securities that would otherwise have been included in such registration and
underwriting will not thereby be limited.

                                   SECTION 4

                                INDEMNIFICATION

         4.1.     INDEMNIFICATION BY THE COMPANY. The Company will indemnify:

                  (a)      each of the Holders, as applicable,

                  (b)      each of the Holder's officers, directors, members
         and partners, and

                  (c)      each individual, partnership, joint stock company,
         corporation, trust, unincorporated organization, government agency or
         political subdivision (each of the foregoing, a "Person") controlling
         each of the Holders within the meaning of Rule 405 under the
         Securities Act,

with respect to the Registration Statement (if Registrable Securities held by
such Holder are included in the Registration Statement), against all expenses,
claims, losses, damages and liabilities (or actions, investigations or
proceedings in respect thereof) (collectively, a "Claim") arising out of or
based on any actual or alleged untrue statement of a material fact, or any
omission of a material fact required to be stated therein or necessary in order
to make the statements included therein not misleading, contained in the
Registration Statement, any prospectus or other offering document (including
any related registration statement, notification or the like) incident to the
registration, qualification or compliance, or any

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violation by the Company of the Securities Act or the Exchange Act or any other
laws or any rule or regulation thereunder applicable to the Company and
relating to action or inaction required of the Company in connection with any
such registration, qualification or compliance, and will reimburse each of the
Holders, each of its officers, directors, members and partners, and each Person
controlling each of the Holders, for any legal and any other expenses
reasonably incurred in connection with investigating and defending any such
Claim; provided, however, that the Company will not be liable (i) in any such
case to the extent that any such Claim arises out of or is based on any untrue
statement or omission based upon written information furnished to the Company
by the Holders or their Representatives and stated to be specifically for use
in the Registration Statement, prospectus or other offering document or (ii)
for any amounts paid in settlement of any such Claim if such settlement is
effected without the consent of the Company.

         4.2.     INDEMNIFICATION BY THE HOLDERS. Each of the Holders will, if
Registrable Securities held by it are included in the Registration Statement,
indemnify the Company, each of its directors and officers, and each Person who
"controls" the Company within the meaning of Rule 405 under the Securities Act,
against all Claims arising out of or based on any actual or alleged untrue
statement of a material fact, or any omission or a material fact required to be
stated therein or necessary in order to make the statement included or
incorporated therein not misleading, contained in the Registration Statement,
prospectus, or other offering document made by or on behalf of such Holder, and
will reimburse the Company, its directors, officers, partners, members or
control Persons for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such Claim, in each case to the
extent, but only to the extent, that such untrue statement (or alleged untrue
statement) or omission (or alleged omission) is made in the Registration
Statement, prospectus, offering memorandum or other document in conformity with
written information furnished to the Company by or on behalf of such Holder and
stated to be specifically for use therein; provided, however, that the
obligations of each of the Holders hereunder shall be limited to an amount
equal to the net proceeds received by such Holder from the sale of the
Registrable Securities pursuant to the Registration Statement.

         4.3.     PROCEDURES. Each party entitled to indemnification under this
Agreement (each, an "Indemnified Party") shall give notice to the party
required to provide indemnification (the "Indemnifying Party") promptly after
such Indemnified Party has actual knowledge of any Claim as to which indemnity
may be sought and shall permit the Indemnifying Party to assume the defense of
any such Claim; provided that counsel for the Indemnifying Party, who shall
conduct the defense of such Claim, shall be approved by the Indemnified Party
(whose approval shall not unreasonably be withheld), and the Indemnified Party
may participate in such defense at its own expense (unless the Indemnified
Party shall have reasonably concluded that there may be a conflict of interest
between the Indemnifying Party and the Indemnified Party in such action, in
which case the reasonable fees and expenses of one such counsel for all
Indemnified Parties as a group shall be at the expense of the Indemnifying
Party), and provided further that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its
obligations under this Agreement unless the Indemnifying Party is materially
prejudiced thereby. No Indemnifying Party, in the investigation or defense of
any such Claim shall, except with the consent of each Indemnified Party (which
consent shall not be unreasonably withheld or delayed), consent to entry of any
judgment or enter into any settlement or compromise which does not include an
unconditional release of the Indemnified Party from all liability in respect to
such Claim. Each Indemnified Party shall furnish such information regarding
itself or the Claim in question as an Indemnifying Party may reasonably request
in writing and as shall be reasonably required in connection with the
investigation and defense of such Claim.

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         4.4.     CONTRIBUTION. If the indemnification provided for in this
Agreement is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party with respect to any Claim, then the Indemnifying Party, in
lieu of indemnifying such Indemnified Party hereunder, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such loss,
liability, claim, damage or expense in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions
which resulted in such Claim, as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the
Indemnified Party shall be determined by reference to, among other things,
whether the untrue (or alleged untrue) statement of a material fact or the
omission (or alleged omission) to state a material fact relates to information
supplied by the Indemnifying Party or by the Indemnified Party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission, and provided that each Holder shall not be
required to contribute, in the aggregate, more than the net proceeds received
by the Holders from the sale of the Registrable Securities pursuant to the
Registration Statement.

Notwithstanding the foregoing, no party guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any party who was not guilty of such fraudulent
misrepresentation. For purposes of this paragraph, each Person, if any, who
controls a Holder within the meaning of Rule 405 under the Securities Act and
directors, officers, members and partners of such Holder shall have the same
rights to contribution as such Holder, and each director of the Company, each
officer of the Company who signed the registration statement and each Person,
if any, who controls the Company within the meaning of Rule 405 under the
Securities Act shall have the same rights to contribution as the Company.

                                   SECTION 5

                    PROVISION OF INFORMATION BY THE HOLDERS

         Each of the Holders whose Registrable Securities are included in the
Registration Statement shall furnish to the Company such information regarding
such Holder as the Company may reasonably request in writing and as shall be
reasonably required in connection with any registration, qualification or
compliance referred to in this Agreement and shall promptly notify the Company
if such information becomes incorrect or misleading, or requires amendment or
updating. Each of the Holders agrees that the plan of distribution included in
any prospectus relating to the Registrable Securities shall be as set forth on
Schedule 3 hereto and that such Holder will not resell any Registrable
Securities pursuant to the Registration Statement in any manner other than as
provided therein or herein. The other information regarding the Holders
required for the initial filing of the Registration Statement has been provided
by each Holder to the Company by completing the questionnaire in the form
attached as Schedule 2. Each Holder represents, warrants and covenants to the
Company that the information in Schedule 1 and on the completed questionnaire
in the form attached as Schedule 2 is accurate and complete in all respects.
The Purchaser will confirm promptly the sale of any Shares pursuant to Rule 144
or the Registration Statement by delivery to the Company of a signed copy of
Schedule 4.

                                   SECTION 6

                             HOLDBACK; POSTPONEMENT

         Notwithstanding the other provisions of this Agreement, if (a) there
is material non-public information regarding the Company which the Company's
Board of Directors reasonably and in good

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faith determines not to be in the Company's best interest to disclose publicly
and which the Company is not otherwise required to disclose publicly, or (b)
there is a extraordinary business opportunity (including, but not limited to,
the acquisition or disposition of assets (other than in the ordinary course of
business) or any financing, merger, consolidation, tender offer or other
similar extraordinary transaction not in the ordinary course of business)
available to the Company which the Company's Board of Directors reasonably and
in good faith determines not to be in the Company's best interest to disclose
publicly, then the Company may postpone or suspend filing or effectiveness of a
registration statement for a period not to exceed 45 days, provided that the
Company may not postpone or suspend filing or effectiveness of a registration
statement for more than 90 days in the aggregate during any 365-day period and
there shall be an aggregate of not more than two (2) suspensions during any
365-day period; provided, however that no postponement or suspension shall be
permitted for consecutive 45 day periods arising out of the same set of facts,
circumstances or transactions.

                                   SECTION 7

                            RULE 144 REPORTING, ETC.

         7.1.     SEC REPORTING COMPLIANCE. With a view to making available the
benefits of certain rules and regulations of the Commission which may at any
time permit the sale of the Registrable Securities to the public without
registration, through the second anniversary of this Agreement, the Company
will:

                  (a)      make and keep "current public information" regarding
         the Company available, as defined in Rule 144(c) under the Securities
         Act;

                  (b)      use its commercially reasonable best efforts to file
         with the Commission in a timely manner all SEC Reports and other
         filings and documents required of the Company under the Securities Act
         and the Exchange Act and otherwise; and

                  (c)      so long as a Holder owns any Registrable Securities,
         furnish the Holders upon request a written statement by the Company as
         to its compliance with the reporting requirements under the Securities
         Act and the Exchange Act, including compliance with Rule 144(c), a
         copy of the most recent annual or quarterly report of the Company, and
         such other reports and documents of the Company and other information
         in the possession of, or obtainable without undue effort or expense
         by, the Company as a Holder may reasonably request in availing itself
         of any rule or regulation of the Commission allowing a Holder to sell
         any such securities without registration.

                                   SECTION 8

                                 MISCELLANEOUS

         8.1.     ASSIGNMENT. The registration rights set forth herein may be
assigned, in whole or in part, to any transferee of Registrable Securities
permitted in accordance with the Stock Purchase Agreement, which transferee,
upon registration on the Company's or its transfer agent's books and records as
a holder of record of Registrable Securities, shall be considered thereafter to
be a Holder (provided that any transferee who is not an affiliate of a
Purchaser shall be a Holder only with respect to such Registrable Securities so
acquired and any stock of the Company issued as a dividend or other
distribution with respect to, or in exchange for or in replacement of, such
Registrable Securities) and shall be bound by all obligations and limitations
of this Agreement and the Stock Purchase Agreement.

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         8.2.     SECTION HEADINGS. The titles and headings of the sections and
subsections of this Agreement are inserted for convenience only and shall not
be deemed to constitute a part thereof.

         8.3.     GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of North Carolina, without
regard to the principles of conflicts of laws.

         8.4.     NOTICES.

                  (a)      All communications under this Agreement shall be in
         writing and shall be delivered by facsimile, by hand, by reliable
         overnight delivery service such as UPS or FedEx or by registered or
         certified mail, postage prepaid:

                           (i)      if to the Company, to 104 Cambridge Plaza
                  Drive, Winston-Salem, North Carolina 27104, (336) 659-6755,
                  Attention: Chief Financial Officer, or at such other address
                  as it may have furnished in writing to the Purchasers;

                           (ii)     if to the Purchasers, at the addresses
                  listed on Schedule 1 hereto, or at such other addresses as
                  may have been furnished the Company in writing.

                  (b)      Any notice so addressed shall be deemed to be given
         (i) if delivered by hand, on the date of such delivery, (ii) if sent
         by reliable overnight delivery service such as UPS or FedEx, on the
         first business day following the date of delivery to such service for
         overnight delivery, (iii) if delivered by facsimile, on the date of
         such facsimile with confirmed receipt, or (iv) if mailed by registered
         or certified mail, on the third business day after the date of such
         mailing.

         8.5.     SUCCESSORS AND ASSIGNS; NO THIRD PARTY BENEFICIARIES. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties. No other person is intended to or
shall have any rights or remedies hereunder, whether as a third part
beneficiary or otherwise.

         8.6.     COUNTERPARTS. This Agreement may be executed in two or more
identical counterparts, each of which shall be deemed an original and all of
which shall be one and the same agreement. Any signature that is delivered by
facsimile signature page shall be valid and binding, with the same force and
effect as if an original, manually signed counterpart.

         8.7.     SEVERABILITY. In the event that any provision contained
herein is unenforceable, the remaining provisions shall continue in full force
and effect.

         8.8.     DELAYS OR OMISSIONS. It is agreed that no delay or omission
to exercise any right, power or remedy accruing to the Holders, upon any breach
or default of the Company under this Agreement, shall impair any such right,
power or remedy, nor shall it be construed to be a waiver of any provision
hereof, or of any similar breach or default thereafter occurring; nor shall any
wavier of any single breach or default be deemed a waiver of any other breach
or default theretofore or thereafter occurring. It is further agreed that any
waiver, permit, consent or approval of any kind or character by a Holder of any
breach or default under this Agreement, or any waiver by a Holder of any
provisions or conditions of this Agreement, must be in writing and shall be
effective only to the extent specifically set forth in the writing, and that
all remedies, either under this Agreement, or by law or otherwise afforded to a
Holder, shall be cumulative and not alternative.

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         8.9.     ATTORNEY'S FEES. If any action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to reasonable attorney's fees, costs and necessary
disbursements in addition to any other relief to which such party may be
entitled.

         8.10.    ENTIRE AGREEMENT; AMENDMENT. This Agreement, together with
the other Operative Documents, constitute the entire understanding and
agreement of the parties with respect to the subject matter hereof and
supersede all prior understandings, written or otherwise, among such parties.
This Agreement may be amended only in a writing signed by the Company and the
Holders of a majority of the then outstanding Registrable Securities.

         IN WITNESS WHEREOF, the undersigned, thereunto duly authorized, have
executed this Agreement as of the date first set forth above.

                           BLUE RHINO CORPORATION

                           By: /s/ Billy D. Prim
                               -------------------------------------------
                               Name:  Billy D. Prim
                                      ------------------------------------
                               Title: President and CEO
                                      ------------------------------------

                           PURCHASERS:

                           LAGUNITAS PARTNERS, LP

                           By: /s/ Jon D. Gruber
                               -------------------------------------------
                               Name:  Jon D. Gruber
                                      ------------------------------------
                               Title: GMCM Manager
                                      ------------------------------------
                                      General Partner
                                      ------------------------------------

                           GRUBER FAMILY FOUNDATION

                           By: /s/ Jon D. Gruber
                               -------------------------------------------
                               Name:  Jon D. Gruber
                                      ------------------------------------
                               Title: Secretary
                                      ------------------------------------

                           HAMILTON COLLEGE

                           By: /s/ Jon D. Gruber
                               -------------------------------------------
                               Name:  Jon D. Gruber
                                      ------------------------------------
                               Title: GMCM Managing Member,
                                      ------------------------------------
                                      Attorney-in-Fact
                                      ------------------------------------

                           GRUBER & MCBAINE INTERNATIONAL

                           By: /s/ Jon D. Gruber
                               -------------------------------------------
                               Name:  Jon D. Gruber
                                      ------------------------------------
                               Title: GMCM Managing Member,
                                      ------------------------------------
                                      Attorney-in-Fact
                                      ------------------------------------

                           /s/ Jon D. Gruber
                           -----------------------------------------------
                           Jon D. Gruber
                           -----------------------------------------------

                                     -10-
<PAGE>

                           /s/ Linda W. Gruber
                           -----------------------------------------------
                           Linda W. Gruber
                           -----------------------------------------------

                           JON D. GRUBER TTEE FBO LINDSAY D. GRUBER

                           By: /s/ Jon D. Gruber
                               -------------------------------------------
                               Name:  Jon D. Gruber
                                      ------------------------------------
                               Title: Trustee
                                      ------------------------------------

                           JON D. GRUBER TTEE FBO JONATHAN W. GRUBER

                           By: /s/ Jon D. Gruber
                               -------------------------------------------
                               Name:  Jon D. Gruber
                                      ------------------------------------
                               Title: Trustee
                                      ------------------------------------

                           /s/ J. Patterson McBaine
                           -----------------------------------------------
                           J. Patterson McBaine
                           -----------------------------------------------

                           ZURICH INSTITUTIONAL BENCHMARK MASTER FUND, LTD.

                           By: /s/ Jon D. Gruber
                               -------------------------------------------
                               Name:  Jon D. Gruber
                                      ------------------------------------
                               Title: GMCM Managing Member,
                                      ------------------------------------
                                      Attorney-in-Fact
                                      ------------------------------------

                           COLONIAL FUND, LLC

                           By: /s/ Cary G. Brody
                               -------------------------------------------
                               Name:  Cary G. Brody
                                      ------------------------------------
                               Title: President
                                      ------------------------------------

                           GULFSTREAM PARTNERS, L.P.

                           By: /s/ Piers M. MacDonald
                               -------------------------------------------
                               Name:  Piers M. MacDonald
                                      ------------------------------------
                               Title: Managing General Partner
                                      ------------------------------------

                                      -11-
<PAGE>

                           HERMES PARTNERS, L.P.

                           By: /s/ Paul Flather
                               -------------------------------------------
                               Name:  Paul Flather
                                      ------------------------------------
                               Title: President of Hermes Advisors
                                      ------------------------------------

                           ULTRA HERMES FUND, LTD.

                           By: /s/ Paul Flather
                               -------------------------------------------
                               Name:  Paul Flather
                                      ------------------------------------
                               Title: President of Hermes Advisors
                                      ------------------------------------

                           MARLIN FUND, L.P.

                           By: /s/ Michael W. Masters
                               -------------------------------------------
                               Name:  Michael W. Masters
                                      ------------------------------------
                               Title: Managing Member of the General
                                      ------------------------------------
                                      Partner
                                      ------------------------------------

                           MARLIN FUND II, L.P.

                           By: /s/ Michael W. Masters
                               -------------------------------------------
                               Name:  Michael W. Masters
                                      ------------------------------------
                               Title: Managing Member of the General
                                      ------------------------------------
                                      Partner
                                      ------------------------------------

                           MARLIN FUND OFFSHORE, LTD.

                           By: /s/ Michael W. Masters
                               -------------------------------------------
                               Name:  Michael W. Masters
                                      ------------------------------------
                               Title: Managing Member of the Investment
                                      ------------------------------------
                                      Manager
                                      ------------------------------------

                           STRAUS PARTNERS, L.P.

                           By: /s/ Melville Straus
                               -------------------------------------------
                               Name:  Melville Straus
                                      ------------------------------------
                               Title: General Partner
                                      ------------------------------------

                                      -12-
<PAGE>

                           STRAUS-SPELMAN L.P.

                           By: /s/ Melville Straus
                               -------------------------------------------
                               Name:  Melville Straus
                                      ------------------------------------
                               Title: General Partner
                                      ------------------------------------

                           STRAUS-GEPT, L.P.

                           By: /s/ Melville Straus
                               -------------------------------------------
                               Name:  Melville Straus
                                      ------------------------------------
                               Title: General Partner
                                      ------------------------------------

                           COLUMBUS CAPITAL PARTNERS, L.P.

                           By: /s/ Matthew D. Ockner
                               -------------------------------------------
                               Name:  Matthew D. Ockner
                                      ------------------------------------
                               Title: Managing Member of
                                      ------------------------------------
                                      Columbus Capital Management, LLC
                                      ------------------------------------
                                      General Partner
                                      ------------------------------------

                           COLUMBUS CAPITAL OFFSHORE FUND, LTD.

                           By: /s/ Matthew D. Ockner
                               -------------------------------------------
                               Name:  Matthew D. Ockner
                                      ------------------------------------
                               Title: Managing Member of
                                      ------------------------------------
                                      Columbus Capital Management, LLC
                                      ------------------------------------
                                      Investment Manager
                                      ------------------------------------

                                      -13-
<PAGE>

                                                  Registration Rights Agreement

                                   SCHEDULE 1

                             SCHEDULE OF PURCHASERS

Name and Address                  No. of Shares

                                      -14-
<PAGE>

                                                  Registration Rights Agreement

                                   SCHEDULE 2

                      REGISTRATION STATEMENT QUESTIONNAIRE

         In connection with the preparation of the Registration Statement,
please provide us with the following information:

         1.       Pursuant to the "Selling Stockholder" section of the
Registration Statement, please state your or your organization's name and
address exactly as it should appear in the Registration Statement:

-------------------------------------------------------------------------------

         2.       Please provide the number of shares of Common Stock of the
Company that you or your organization will beneficially own (as determined in
accordance with Rule 13d-3 under the Exchange Act) immediately after Closing,
including those Shares purchased by you or your organization pursuant to the
Stock Purchase Agreement and those shares purchased by you or your organization
through other transactions. Explain the nature of beneficial ownership of any
shares that are not held of record by you. Disclose the details of any rights
to acquire shares.

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

         3.       Have you or your organization had any position, office or
other relationship within the past three years with the Company or its
affiliates other than as disclosed in the Prospectus included in the
Registration Statement?

                          [ ] Yes             [ ] No

         If yes, please indicate the nature of any such relationships below:

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

         4.       Are you, or is your organization, a broker-dealer or an
affiliate of a broker-dealer within the meaning of Rule 405 under the
Securities Act.

                          [ ] Yes             [ ] No

                                      -15-

<PAGE>

                                                  Registration Rights Agreement

         If yes, please identify the broker-dealer below and state the nature
of the relationship:

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

         5.       Identify the natural person or persons who have voting and/or
investment control over the securities that you or your organization are
offering for resale in the Registration Statement.

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

*        Please note that it is your obligation to advise the Company promptly
if any of the foregoing information changes during the period of effectiveness
of the Registration Statement (except due to sales of the Shares pursuant
thereto).

                                     -16-
<PAGE>

                                                  Registration Rights Agreement

The undersigned, thereunto duly authorized on behalf of the Purchaser, confirms
the accuracy and completeness of the foregoing and agrees that sales shall be
made only in the manner indicated under the "Plan of Distribution" in the
Prospectus.

         -----------------------------------
         Name of Purchaser

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

                                     -17-
<PAGE>

                                                  Registration Rights Agreement

                         Registration Rights Agreement
                                   SCHEDULE 3

                              PLAN OF DISTRIBUTION

         The selling stockholders may sell the shares on any stock exchange,
market, or trading facility on which the shares are traded, in private
transactions, or otherwise, at market prices prevailing at the time of sale, at
prices related to the prevailing market prices, or at negotiated prices. In
addition, the selling stockholders may sell some or all of their shares
through:

         -        a block trade in which a broker-dealer may resell a portion
                  of the block, as principal, in order to facilitate the
                  transaction;

         -        purchases by a broker-dealer, as principal, and resale by the
                  broker-dealer for its account;

         -        ordinary brokerage transactions and transactions in which a
                  broker solicits purchasers;

         -        an underwritten public offering;

         -        any other method permitted pursuant to applicable law; or

         -        a combination of any such methods of sale.

         When selling the shares, the selling stockholders may enter into
hedging transactions. For example, the selling stockholders may:

         -        enter into transactions involving short sales of the shares
                  by broker-dealers;

         -        sell shares short themselves and redeliver such shares to
                  close out their short positions;

         -        enter into option or other types of transactions that require
                  the selling stockholder to deliver shares to a broker-dealer,
                  who will then resell or transfer the shares under this
                  prospectus; or

         -        loan or pledge the shares to a broker-dealer, who may sell
                  the loaned shares or, in the event of default, sell the
                  pledged shares.

         The selling stockholders may negotiate and pay broker-dealers
commissions, discounts or concessions for their services. Broker-dealers
engaged by the selling stockholders may allow other broker-dealers to
participate in resales. However, the selling stockholders and any
broker-dealers involved in the sale or resale of the shares may qualify as
"underwriters" within the meaning of Section 2(a)(11) of the Securities Act. In
addition, the broker-dealers' commissions, discounts or concession may qualify
as underwriters' compensation under the Securities Act. The Company has agreed
to indemnify each selling stockholder against certain liabilities, including
liabilities arising under the Securities Act. If the selling stockholders
qualify as "underwriters" they will be subject to the prospectus delivery
requirements of Section 5(b)(2) of the Securities Act. Each broker-dealer
engaged by a selling stockholder (or by a broker-dealer engaged by a selling
stockholder) must be registered or licensed in each state in which such
broker-dealer conducts offers and sales of shares of the selling stockholders.

         In addition to selling their shares under this prospectus, the selling
stockholders may:

                                     -18-
<PAGE>

                                                  Registration Rights Agreement

         -        agree to indemnify any broker-dealer or agent against certain
                  liabilities related to the selling of the shares, including
                  liabilities arising under the Securities Act;

         -        transfer their shares in other ways not involving market
                  makers or established trading markets, including directly by
                  gift, distribution, or other transfer; or

         -        sell their shares under Rule 144 of the Securities Act rather
                  than under this prospectus, if the transaction meets the
                  requirements of Rule 144.

         As used herein, the term "selling stockholder" includes donees,
pledgees, transferees or other successors-in-interest selling shares received
after the date of this prospectus from a named selling stockholder as a gift,
pledge, partnership distribution or other non-sale related transfer.

         Upon the Company being notified by a selling stockholder that any
material arrangement has been entered into with a broker-dealer or underwriter
for the sale of shares through a block trade, special offering, exchange
distribution or secondary distribution or a purchase by a broker or dealer, a
prospectus supplement will be filed, if required, pursuant to Rule 434(b) under
the Securities Act, disclosing: (1) the name of each such selling stockholder
and of the participating broker-dealer(s) or underwriter(s); (2) the number of
shares involved, (3) the price at which such shares were or will be sold, (4)
the commissions paid or to be paid or discounts or concessions allowed to such
broker-dealer(s) or underwriter(s), where applicable, (5) that, as applicable,
such broker-dealer(s) did not conduct any investigation to verify the
information set out or incorporated by reference in this prospectus and (6)
other facts material to the transaction. In addition, upon the Company being
notified by a selling stockholder that a donee, pledgee, transferee, or other
successor-in-interest intends to sell more than 500 shares, a prospectus
supplement will be filed, if required.

                                     -19-
<PAGE>

                                                  Registration Rights Agreement

                                   SCHEDULE 4

                 PURCHASER'S CERTIFICATE OF SUBSEQUENT SALE(1)

         The undersigned, an officer of, or other person duly authorized
by____________________________________________________ hereby certifies to the
  [fill in official name of individual or institution]
Company, as defined in the Registration Right Agreement dated as of _______
(the "Agreement") that he/she (said institution) is the Purchaser of the shares
evidenced by the attached certificate, and as such, sold such shares on
___________________ in accordance with
     [date]

         (i)      Registration Statement number
                  _____________________________________________,
                  [fill in the number of or otherwise identify]

                  in the manner indicated under "Plan of Distribution" in the
                  current prospectus and has delivered a current prospectus, or

         (ii)     pursuant to the applicable requirements of Rule 144 of the
                  Securities Act of 1933, as amended, in which case, a copy of
                  Form 144 as filed with the Securities and Exchange
                  Commission, together with the representation letter of the
                  undersigned and the broker's representation letter are
                  enclosed.

Print or Type:

         Name of Purchaser
         (Individual or Institution):
                                     -------------------------------

         Name of Individual Representing
         Purchaser (if an Institution):
                                       -----------------------------
                                       Title:
                                             -----------------------

Confirmed by the undersigned thereunto duly authorized:

         ----------------------------------------------------------
         Purchaser

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

---------
(1)      All capitalized terms used but not defined herein shall have the
         meanings provided in the Agreement.

                                     -20-<PAGE>
                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT (the "Agreement") is dated as of April
19, 2002, by and between Blue Rhino Corporation, a Delaware corporation located
at 104 Cambridge Plaza Drive, Winston-Salem, North Carolina 27014 (the
"Company"), and the various purchasers identified and listed on Schedule 1
attached hereto (each, a "Purchaser," and collectively, the "Purchasers").

                                   SECTION 1

                              SALE OF COMMON STOCK

         Subject to the terms and conditions hereof, the Company has offered,
and will issue and sell (the "Offering") to the Purchasers, and the Purchasers
will buy from the Company, a total of 1,500,000 shares of common stock, $0.001
par value per share, of the Company (the "Common Stock") for the purchase price
of $7.25 per share, with each Purchaser purchasing the number of shares of
Common Stock for the aggregate cash purchase price indicated on Schedule 1
attached hereto. The shares of Common Stock to be issued and sold by the
Company and purchased by the Purchasers pursuant to this Agreement are herein
referred to as the "Shares." This Agreement and each Purchaser's obligation
hereunder are not conditioned on the sale of any minimum number of Shares.

         The Shares will be offered and sold without registration under the
Securities Act of 1933, as amended (the "Securities Act"), in reliance upon the
exemption from registration provided by Section 4(2) of the Securities Act and
Regulation D thereunder. The Company has prepared and delivered to each
Purchaser copies of an Offering Memorandum, dated April 9, 2002 (as it may be
amended or supplemented, and including the exhibits and/or schedules thereto
and the information incorporated therein by reference, the "Offering
Memorandum").

         The Purchasers (and any subsequent transferees) will be entitled to
the benefits of a Registration Rights Agreement, to be dated as of the date
hereof (as attached hereto as Exhibit A, the "Registration Rights Agreement"),
by and among the Company and the Purchasers. Pursuant to the Registration
Rights Agreement, the Company will file with the Securities and Exchange
Commission (the "SEC" or the "Commission") a shelf registration statement on
Form S-3 pursuant to SEC Rule 415 (the "Registration Statement") under the
Securities Act relating to the resale of the Shares by the Purchasers.

                                   SECTION 2

                               CLOSING; DELIVERY

         2.1.     CLOSING. The closing of the purchase and sale of the Shares
hereunder (the "Closing") shall be held at the executive offices of the
Company, or at such other place upon which the Company and the Purchasers shall
agree. The Closing shall occur simultaneously with or immediately after the
execution and delivery of this Agreement by the Purchasers and the Company, or
on such later date as the Company, the Purchasers and SunTrust Robinson
Humphrey Capital Markets, as the exclusive placement agent of the Company for
the offering (the "Placement Agent"), may agree.

         2.2.     DELIVERY. At the Closing, or within a reasonable period of
time thereafter, the Company will deliver to each Purchaser a certificate,
registered in the name of such Purchaser as shown in Schedule 2 attached
hereto, for the number of Shares to be purchased by such Purchaser against
payment of the purchase price therefor by wire transfer per the Company's
wiring instructions. If, at the time of Closing,

<PAGE>

the Shares are eligible for clearance and settlement through The Depository
Trust Company ("DTC"), then the Company may deliver the Shares to the
Purchasers in book-entry form through DTC.

                                   SECTION 3

                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents, warrants and covenants to the Purchasers and
the Placement Agent as follows:

         3.1.     ORGANIZATION AND STANDING; ARTICLES AND BY-LAWS. The Company
and each of its subsidiaries is a corporation or other entity duly organized,
validly existing and in good standing under the laws of the State of its
organization. The Company and each of its subsidiaries has the requisite power
and authority to own and operate its properties and assets and to carry on its
business as presently conducted and as now proposed to be conducted. The
Company and each of its subsidiaries is qualified to do business as a foreign
corporation in all jurisdictions where the ownership of its properties and
assets and the conduct of its business requires such qualification, except
where the failure to be so qualified will not have a material adverse effect on
the business of the Company and its subsidiaries taken as a whole, as such
business is now conducted or as now proposed to be conducted. The Company has
furnished, or as soon as practicable, and in no event later than the day
immediately prior to Closing, will furnish, to each of the Purchasers true and
correct copies of the Company's Restated Certificate of Incorporation, as
amended and as in effect on the date hereof (the "Certificate of
Incorporation"), and certified by the Secretary of State of the State of
Delaware within 10 business days prior to the Closing, and the Company's
Bylaws, as in effect on the date hereof (the "Bylaws"), certified by the
Company's Secretary. Except as disclosed in Schedule 3.1, if any, the Company
owns 100% of all shares of capital stock and other equity interests in each of
its subsidiaries, free of all security interests, liens, pledges or negative
pledges, charge, encumbrances, mortgages, hypothecations, adverse claims or
equities (each, a "Lien"), except that Bank of America has a Lien on the
Company's 49% ownership interest in R4 Technical Center of North Carolina, LLC
("R4 Tech").

         3.2.     CORPORATE POWER. The Company has all requisite legal and
corporate power and authority to execute and deliver this Agreement and to
execute and deliver the agreements set forth as Exhibits hereto (collectively
with this Agreement, the "Agreements"), to sell and issue the Shares as set
forth in the Agreements at the Closing, and to carry out and perform its
obligations under the Agreements.

         3.3.     SUBSIDIARIES. The Company has those subsidiaries or
affiliated companies shown on Schedule 3.3, and does not otherwise own or
control, directly or indirectly, any equity interest in any corporation,
association or business entity, other than as shown in Schedule 3.3 hereto.

         3.4.     CAPITALIZATION. As of the date hereof, the authorized capital
stock of the Company consists of 100,000,000 shares of Common Stock and
20,000,000 shares of Preferred Stock (the "Preferred Stock"). As of March 31,
2002, there were 9,416,739 shares of Common Stock issued and outstanding and
2,840,100 shares of Series A Convertible Preferred Stock issued and outstanding
(convertible as of that date into 2,840,100 shares of Common Stock). No other
shares of capital stock are issued and outstanding. As of March 31, 2002, there
were options and warrants outstanding issued by the Company to purchase an
aggregate of 3,255,280 and 2,910,295 shares of Common Stock, respectively. All
of the outstanding shares of Common Stock and Preferred Stock are duly
authorized, validly issued, fully paid and nonassessable, and all such shares
were issued in material compliance with all applicable federal and state
securities laws, including available exemptions therefrom, and none of such
issuances were made in violation of any pre-emptive or other rights. The
Company has reserved 4,313,725 shares of Common

                                       2
<PAGE>

Stock for issuance pursuant to its stock option and stock purchase plans.
Except as set forth above, there are no options, warrants or other rights
(including conversion, pre-emptive or other rights) or agreements outstanding
to purchase any of the Company's authorized and unissued capital stock.

         3.5.     AUTHORIZATION. All corporate action on the part of the
Company, its officers, directors and stockholders necessary for the
authorization, execution, delivery and performance of the Agreements by the
Company, and for the authorization, the sale, issuance and delivery of the
Shares, has been taken or will be taken prior to the Closing. The Agreements
have been duly executed and delivered by the Company, and constitute valid and
binding obligations of the Company, enforceable in accordance with their terms,
subject to applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors' rights generally and to general principles of equity and
to limitations on the rights to indemnity and contribution that exist by virtue
of public policy (the "Bankruptcy and Equity Exception"). The Shares, when
issued pursuant to this Agreement, will be validly issued, fully paid and
nonassessable.

         3.6.     REPORTS AND FINANCIAL STATEMENTS. (a) The Company has
delivered or made available upon request to the Purchasers prior to the
execution of this Agreement a copy of the Company's Annual Report on Form 10-K
for the year ended July 31, 2001, as amended on Form 10-K/A filed on April 4,
2002, the Company's Quarterly Reports on Form 10-Q that have been filed for all
quarters ended since July 31, 2001, as amended on Form 10-Q/A filed on April 5,
2002, the definitive proxy statement for the Company's 2001 annual meeting of
stockholders and all Current Reports on Form 8-K filed since July 31, 2001, as
such documents have since the time of their filing been amended or supplemented
(together with all reports, documents and information hereafter filed with the
SEC, including all information incorporated therein by reference, collectively,
the "SEC Reports"). The SEC Reports (a) complied and will comply as to form in
all material respects with the requirements of the Securities Act and the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and (b) did
not contain and will not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The audited consolidated financial statements
and unaudited interim consolidated financial statements (including, in each
case, the notes, if any, thereto) included in the SEC Reports complied and will
comply as to form in all material respects with the SEC's rules and regulations
with respect thereto), were prepared in accordance with generally accepted
accounting principles applied on a consistent basis during the periods involved
(except as may be indicated therein or in the notes thereto) and fairly present
(subject, in the case of the unaudited interim financial statements, to normal,
recurring year-end audit adjustments not material and to the absence of
footnotes) the financial position and stockholders' equity of the Company as of
the respective dates thereof and the consolidated cash flows for the respective
periods then ended.

         (b)      The summary, selected and pro forma financial and statistical
data included in the Offering Memorandum present fairly the information shown
therein and, excluding projections for the year ending July 31, 2002 (which
have been compiled on a basis consistent with the Company's earnings release
made in February 2002), have been compiled on a basis consistent with the
financial statements included in the SEC Reports.

         (c)      The Company has a duly constituted audit committee of its
Board of Directors (the "Audit Committee"), all of whose members are
"independent" and such committee has operated in accordance with applicable law
and regulations, the requirements of any securities exchange or Nasdaq market
on which the Company's securities are traded or listed. The Company's
independent public accountants have reviewed each interim financial statement
in accordance with the requirements of applicable federal securities laws, the
Audit Committee's charter, the Commission's rules and regulations and the
applicable rules of Nasdaq or any securities exchange on which the Company has
securities listed

                                       3
<PAGE>

or traded. The Company has received no communications from its independent
public accountants that the independent public accountants are considering or
are likely to consider issuing any report other than a clean, unqualified
opinion as to the Company's audited financial statements for the fiscal year
ending July 31, 2002 or have raised any unresolved issues with respect to any
of the Company's interim financial statements.

         3.7.     DISCLOSURES. The Offering Memorandum, as amended or
supplemented, did not and will not, as of the date thereof through the Closing
Date, contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The Company
has provided to each prospective offeree of the Shares who has requested
further information concerning the Company and its subsidiaries such
information (to the extent that such information is available or can be
acquired and made available to prospective Purchasers without unreasonable
effort or expense and to the extent the provision thereof is not prohibited by
applicable law), and such offerees have had the opportunity to ask questions
and receive answers concerning the terms of the Offering and to obtain
information about the Company and its subsidiaries and the Offering. Neither
the consent of the Placement Agent, nor the Placement Agent's delivery of any
such amendment or supplement to the Offering Memorandum, shall constitute a
waiver of any of the Company's representations and warranties or any of the
conditions set forth in Section 6 hereof.

         3.8.     NO INTEGRATION. The Company has not, directly or through any
agent, during the six-month period ending on the date of this Agreement, sold,
offered for sale, solicited offers to buy or otherwise negotiated in respect
of, any security (as defined in the Securities Act) in a manner that would
cause the offer and sale of the Shares to fail to be entitled to the exemption
afforded by Rule 506 of Regulation D or under Section 4(2) of the Securities
Act.

         3.9.     NO PUBLIC OFFERING. The Company has not engaged, in
connection with the offering of the Shares, (i) in any form of general
solicitation or general advertising within the meaning of Rule 502(c) under the
Securities Act, (ii) in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act, (iii) in any action which would
violate applicable state securities, or "blue sky" laws, or in any directed
selling efforts within the meaning of SEC Regulation S.

         3.10.    CONFORMITY OF DESCRIPTIONS. The Shares conform in all
material respects to any descriptions contained in the Company's SEC Reports
and other filings with the SEC.

         3.11.    NO MATERIAL ADVERSE CHANGES. Except as disclosed on Schedule
3.11, if any, or in the SEC Reports filed not less than five (5) business days
prior to the date hereof, there has been no (i) material adverse change in the
business, results of operations, stockholders' equity, cash flows or financial
condition of the Company and its subsidiaries, taken as a whole, whether or not
arising in the ordinary course of business (a "Material Adverse Effect"), or
(ii) dividend or distribution of any kind declared or paid by the Company on
any shares of its capital stock.

         3.12.    NO CONFLICTS. The execution, delivery and performance of the
Agreements, the issuance and delivery of the Shares by the Company and the
consummation by the Company of the transactions contemplated herein and in the
other Agreements do not and will not (i) conflict with or violate any provision
of the Certificate of Incorporation, Bylaws or other organizational documents
of the Company or any of its subsidiaries, (ii) conflict with, or constitute a
default (or an event which, with notice or lapse of time or both, would become
a default) under, or give to other Persons any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent,
license or instrument (whether evidencing a Company debt or otherwise) to which
the Company or any of its subsidiaries is a

                                       4
<PAGE>

party or by which any property or asset of the Company or any of its
subsidiaries is bound or affected or (iii) result in a violation of any law,
rule, regulation, order, judgment, injunction, decree or other restriction of
any court or governmental authority to which the Company or any of its
subsidiaries is subject (including federal and state securities laws and
regulations and the rules and regulations of the principal market, system or
exchange on which the Common Stock is traded, quoted or listed), or by which
any assets of the Company or its subsidiaries is bound or affected.

         3.13.    CONSENTS AND APPROVALS. None of the Company or any of its
subsidiaries is required to obtain any consent, waiver, authorization or order
of, give any notice to, or make any filing or registration ("Consents") with,
any court or other federal, state, local or other governmental authority,
regulatory or self regulatory agency ("Governmental Authorities"), or other
Person in connection with the execution, delivery and performance by the
Company of the Agreements, other than (i) the filing of the Registration
Statement with the Commission in accordance with the Registration Rights
Agreement, (ii) the application(s) or any letter(s) acceptable to the Nasdaq
National Market ("Nasdaq") for the listing or quoting of the Shares on Nasdaq
(and with any other national securities exchange or market on which the Common
Stock is then traded, listed or quoted), and the notice, if any, required by
Nasdaq Rule 4310, which has been filed as shown in Schedule 3.13, (iii) any
filings, notices or registrations under applicable state securities laws, (iv)
the disclosure requirements of the Exchange Act, and the disclosure
requirements of Item 701 of SEC Regulation S-K, and (v) filing a Form D and a
Form 8-K with the Commission (collectively, the Required Approvals").

         3.14.    PROCEEDINGS. There is no action, suit, hearing, claim, notice
of violation, arbitration or other proceeding, hearing or investigation (each,
a "Proceeding") pending or, to the knowledge of the Company, threatened against
or affecting the Company or any of its respective subsidiaries or any of their
assets before or by any Governmental Authority or any arbitrator, which (i)
adversely affects or challenges the legality, validity or enforceability of any
of the Agreements, (ii) could reasonably be expected to, individually or in the
aggregate, have or result in a Material Adverse Effect, or (iii) if adversely
decided, could reasonably be expected to have a material adverse effect on or
delay the issuance of the Shares, or the consummation of the transactions
contemplated by the Agreement.

         3.15.    NO DEFAULT OR VIOLATION. Except for those that would not,
individually or in the aggregate, result in a Material Adverse Effect, none of
the Company or its subsidiaries is in (i) default under or in violation of any
indenture, loan or other credit agreement or any other agreement or instrument
to which it is a party or by which any of them or their assets or properties is
bound, or (ii) violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any arbitrator or Governmental
Authority applicable to it. None of the Company or any of its subsidiaries is
in default under, or in violation of, its Certificate of Incorporation, Bylaws
or other organizational documents or in default under or in violation of any of
the listing or, quotation requirements of Nasdaq as in effect on the date
hereof and the Company is not aware of any facts which would reasonably lead to
delisting or suspension of trading in the Common Stock by Nasdaq in the
foreseeable future. The business of the Company and its subsidiaries is not
being conducted, and shall not be conducted, in violation of any law, statute,
ordinance, rule or regulation of any Governmental Authority, except where such
violations have not resulted or are not reasonably likely to result,
individually or in the aggregate, in a Material Adverse Effect. None of the
Company or its subsidiaries is in breach of any agreement where such breach,
individually or in the aggregate, is reasonably likely to have a Material
Adverse Effect.

         3.16.    BROKER'S FEES. No fees or commissions or similar payments
with respect to the transactions contemplated by the Agreements have been paid
or will be payable by the Company to any broker, financial advisor, finder,
investment banker or bank, other than fees payable to the Placement

                                       5
<PAGE>

Agent, and the Company shall indemnify and hold harmless the Purchasers and the
Placement Agent from and against any such claims.

         3.17.    LISTING COMPLIANCE. The principal market on which the Common
Stock is currently traded is Nasdaq. Except as disclosed on Schedule 3.17, if
any, the Company has not in the three (3) years preceding the date hereof
received notice (written or oral) from Nasdaq (or any stock exchange, market or
trading facility on which the Common Stock is or has been traded or listed (or
on which it has been quoted)) to the effect that the Company is not in
compliance with the listing or maintenance requirements of any such market,
exchange or trading facility. After giving effect to the transactions
contemplated by the Agreements, the Company is and will be in compliance with
all such maintenance requirements.

         3.18.    INTELLECTUAL PROPERTY RIGHTS. The Company or its subsidiaries
own or possess adequate rights or licenses to use all trademarks, trademark
applications, trade names and service marks, whether or not registered, and all
patents, patent applications, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and intellectual property rights
(collectively, "Intellectual Property Rights") which are necessary for use in
connection with its business as now conducted and as described in the SEC
Reports. The Company has no knowledge that it or any of its subsidiaries has
infringed, and none of the Company or any of its subsidiaries is infringing on,
any of the Intellectual Property Rights of any Person. Except as disclosed in
the Company's SEC Reports or the Offering Memorandum, there is no Proceeding
pending or, to the Company's knowledge, threatened against the Company
regarding the infringement of any of the Intellectual Property Rights. The
Company and its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of its Intellectual Property Rights.

         3.19.    REGISTRATION RIGHTS; RIGHTS OF PARTICIPATION. Except as
described on Schedule 3.19 and except for rights that have been expressly
waived prior to the date hereof, (i) the Company has not granted or agreed to
grant to any Person any rights (including "piggy-back" registration rights) to
have any securities of the Company registered with the Commission or any other
Governmental Authority which have not been satisfied, and (ii) no Person,
including current or former stockholders of the Company, underwriters, brokers
or agents, has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions
contemplated by the Agreements or to require that the Company include any such
securities in the registration of Shares as contemplated herein.

         3.20.    TITLE. Except as disclosed on Schedule 3.20, the Company has
good and marketable title in fee simple to all property owned by it and its
subsidiaries, in each case free and clear of all Liens, except for Liens that
do not materially affect the value of such property and do not interfere with
the use made and proposed to be made of such property by the Company and its
subsidiaries. Any properties held or used under lease by the Company and its
subsidiaries are held by them under valid, subsisting and enforceable leases,
with such exceptions as are not material and do not interfere with the use made
and proposed to be made of such properties by the Company and its subsidiaries.

         3.21.    PERMITS. The Company and its subsidiaries possess all
certificates, authorizations, licenses, easements, consents, approvals, orders,
permits and approvals ("Permits") necessary to own, lease and operate its
properties and to conduct their businesses as currently conducted (excluding
Permits required to be obtained by the Company's distributors for the conduct
of their businesses) except where the failure to possess such Permits is not
reasonably likely, individually or in the aggregate, to have a Material Adverse
Effect ("Material Permits"), and there is no Proceeding pending, or, to the
knowledge of the Company, threatened relating to the revocation, modification,
suspension or cancellation of any Material Permit. The Company and its
subsidiaries have fulfilled and performed all of the material

                                       6
<PAGE>

obligations with respect to such Permits, and no event or change in condition
has occurred which allows, or which upon notice, the lapse of time or both
would allow, the revocation or termination thereof or results in any other
material impairment of the rights of the holder of any such Permits, except for
failures which would not, individually or in the aggregate, have a Material
Adverse Effect. The Company and its subsidiaries are not in conflict with, in
default under or in violation of any Material Permit.

         3.22.    INSURANCE. The Company and its subsidiaries, and their
respective properties are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as management
believes is prudent and customary in the business in which the Company and its
subsidiaries are engaged. Except as disclosed on Schedule 3.22, the Company has
no reason to believe that it will not be able to renew such existing insurance
policies as and when such coverage expires or to obtain similar coverage from
similar insurers, at a cost that would not materially and adversely affect the
condition, financial or otherwise, or the earnings, cash flows, business or
business prospects of the Company and its subsidiaries, taken as a whole.

         3.23.    INVESTMENT COMPANY. None of the Company or any of its
subsidiaries is an "investment company" or a company "controlled by" an
"investment company" as such terms are defined in the Investment Company Act of
1940, as amended (the "1940 Act"), and the SEC's rules and regulations
thereunder.

         3.24.    NO STABILIZATION. Neither the Company nor any of its
directors, officers, subsidiaries or controlling persons has taken or will
take, directly or indirectly, any action designed to, or which might reasonably
be expected to cause or result in, or which has constituted, under the Exchange
Act, the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Shares.

         3.25.    LABOR. No strike, labor problem, dispute, slowdown, work
stoppage or disturbance with the employees of the Company or any of its
subsidiaries exists or, to the knowledge of the Company, is threatened.

         3.26.    STOCK AND OTHER PLANS. Other than as disclosed in the SEC
Reports, none of the Company and its subsidiaries have any profit sharing,
deferred compensation, stock option, stock purchase, phantom stock or similar
plans, including agreements evidencing rights to purchase securities or to
share in the profits of the Company which is material to the Company and its
subsidiaries, taken as a whole.

         3.27.    SOLVENCY. Except as disclosed on Schedule 3.27, the Company
and each of its "significant subsidiaries" (as that term is defined by Rule
1-02 of Regulation S-X promulgated under the Securities Act, but specifically
excluding R4 Tech) are, and immediately after the Closing will be, Solvent. As
used herein, the term "Solvent" means, with respect to a particular date, that
on such date, (i) the fair market value of the total assets of each of the
Company and its subsidiaries exceeds their respective total liabilities
(including, without limitation, stated liabilities and contingent liabilities),
and (ii) the Company and each of its subsidiaries is currently able to pay its
debts as they come due or mature. None of the Company nor any of its
"significant subsidiaries" has taken any steps, and does not currently expect
to take any steps, to seek protection pursuant to any bankruptcy, insolvency,
debtor relief, reorganization or similar law, nor does the Company have any
knowledge or reason to believe that creditors of the Company and its
subsidiaries have initiated or intend to initiate involuntary bankruptcy or
similar proceedings.

                                       7
<PAGE>

         3.28.    ENVIRONMENTAL. Except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, (i) the
Company and its subsidiaries are in compliance with and not subject to any
known liability under applicable Environmental Laws (as defined below), (ii)
the Company and each of its subsidiaries has made all filings and provided all
notices required under all applicable Environmental Laws, and has, and is in
compliance with, all permits required under any applicable Environmental Laws,
each of which is in full force and effect, (iii) (a) there are no pending
Proceedings with respect to any Environmental Laws affecting the Company, (b)
the Company and its subsidiaries have not received any demand, claim or notice
of violation of any Environmental Laws and (c) to the knowledge of the Company,
there is no Proceeding, notice or demand letter or request for information
threatened against the Company or any of its subsidiaries under any
Environmental Law, (iv) no Lien or restriction has been recorded under any
Environmental Law with respect to any assets, facility or property owned,
operated, leased or controlled by the Company or any of its subsidiaries, (v)
none of the Company or any of its subsidiaries has received notice that it has
been identified as a potentially responsible party under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended
("CERCLA"), or any comparable state law, (vi) no property or facility of the
Company (a) is listed or, to the knowledge of the Company, proposed for listing
on the National Priorities List under CERCLA or (b) is listed in the
Comprehensive Environmental Response, Compensation, Liability Information
System List promulgated pursuant to CERCLA, or on any comparable list
maintained by any state or local governmental authority.

         For purposes of this Agreement, "Environmental Laws" means all
applicable federal, provincial, state and local laws or regulations, codes,
orders, decrees, judgments or injunctions issued, promulgated, approved or
entered thereunder, relating to pollution, protection of public or employee
health and safety or the environment, including, without limitation, laws
relating to (i) emissions, discharges, releases or threatened releases of
Hazardous Materials (as defined below) into the environment (including, without
limitation, ambient air, surface water, ground water, land surface or
subsurface strata), (ii) the manufacture, processing, distribution, use,
generation, treatment, storage, disposal, transport or handling of Hazardous
Materials, and (iii) underground and above ground storage tanks and related
piping, and emissions, discharges, releases or threatened releases therefrom.
The term "Hazardous Material" means (a) any "hazardous substance," as defined
in the Comprehensive Environmental Response, the Resource Conservation and
Recovery Act, as amended, (b) any "hazardous waste," as defined by the Resource
Conservation and Recovery Act, as amended, (c) any petroleum or petroleum
product, (d) any polychlorinated biphenyl and (e) any pollutant or contaminant
or hazardous, dangerous or toxic chemical, material, waste or substance.

         3.29.    ERISA. None of the Company or any of its subsidiaries has
incurred any liability for any prohibited transaction or funding deficiency or
any complete or partial withdrawal liability with respect to any pension,
profit sharing or other plan ("Plans") which is subject to the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), to which the
Company or any of its subsidiaries makes or ever has made a contribution and
which would reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect. With respect to such Plans, the Company and each of
its subsidiaries is in compliance in all respects with all applicable
provisions of ERISA and have performed all their respective obligations under
such Plans, except where the failure to so comply would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

         3.30.    FORM S-3 ELIGIBILITY. The Company meets the requirements for
use of SEC Form S-3 under the Securities Act for a secondary resale offering
and is eligible for filing and maintaining a registration statement on Form S-3
relating to the resale of the Shares by the Purchasers.

                                       8
<PAGE>

         3.31.    TAXES. The Company and each of its subsidiaries has made or
filed all federal and state income and all other tax returns, reports and
declarations required by any jurisdiction to which it is subject (unless and
only to the extent that the Company has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) and has
paid all taxes and other governmental assessments and charges that are shown or
determined to be due on such returns, reports and declarations or otherwise,
except those being contested in good faith and for which adequate reserves are
shown in the Company's SEC Reports. There are no unpaid taxes in any material
amount claimed to be due from the Company by the taxing authority of any
jurisdiction, and the officers of the Company know of no basis for any such
claim.

                                   SECTION 4

                            COVENANTS OF THE COMPANY

         The Company hereby covenants with the Purchasers and the Placement
Agent as follows:

         4.1.     NOTIFICATION OF CERTAIN EVENTS. From the date hereof until
the effective date ("Effective Date") of the Registration Statement, the
Company will immediately notify each Purchaser and the Placement Agent, and
confirm such notice in writing, of any material changes in or affecting the
financial condition, earnings, cash flows, stockholders' equity or business of
the Company and its subsidiaries taken as a whole.

         4.2.     OFFERING LIMITATIONS. Except with respect to transactions
pursuant to the Company's Employee Stock Purchase Plan, consistent with past
practice, and the Company's option plans, the Company will not solicit any
offer to buy or offer to sell shares of Common Stock or securities convertible
into or exchangeable for Common Stock by means of any form of general
solicitation or general advertising (as such terms are used in Regulation D
under the Securities Act) or in any manner involving a public offering (within
the meaning of Section 4(2) of the Securities Act) prior to the Effective Date.

         4.3.     INTEGRATION. The Company will not offer, sell or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in
the Securities Act) in a manner that would cause the offer and sale of the
Shares to the Purchasers to fail to be entitled to the exemption from
registration afforded by Rule 506 of Regulation D and Section 4(2) of the
Securities Act.

         4.4.     DISCLOSURES. The Company, promptly following the Closing,
will (i) issue a press release, in a form reasonably acceptable to the
Placement Agent announcing the sale of the Shares through the Placement Agent,
(ii) file such press release and other appropriate information with the SEC on
Form 8-K and (iii) include in the filing of its next Form 10-Q or Form 10-K, as
applicable, appropriate disclosures relating to the sale of the Shares,
including, without limitation, the disclosure required by Item 701 of
Regulation S-K. The Company shall, from and after the Closing through the
period that the Registration Statement is required to be maintained, timely
file all SEC Reports, comply with all requirements under the Exchange Act,
continue to list the Shares on Nasdaq or a national securities exchange, and
otherwise comply with the requirements of Sections 3.6 and 3.30 hereof.

         4.5.     DTC ELIGIBILITY. The Company will use commercially reasonable
efforts and cooperate with the Purchasers to permit the Shares to be eligible
for clearance and settlement through DTC.

         4.6.     USE OF PROCEEDS. The Company will use the proceeds from the
sale of the Shares in the manner specified in the Offering Memorandum under the
caption "Use of Proceeds."

                                       9
<PAGE>

                                   SECTION 5

                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

         Each Purchaser, severally and not jointly, hereby represents, warrants
and covenants to the Company and the Placement Agent with respect to the
purchase of the Shares by such Purchaser as follows:

         5.1.     EXPERIENCE. Such Purchaser has substantial experience in
evaluating and investing in private placement transactions of securities in
companies similar to the Company, and the Purchaser is capable of evaluating
the merits and risks of its investment in the Company and has the capacity to
protect its own interests.

         5.2.     QUALIFIED INSTITUTIONAL BUYER; ACCREDITED INVESTOR. Such
Purchaser is a "qualified institutional buyer," as defined in Rule 144A of the
Securities Act, or an "accredited investor," as defined in SEC Regulation D
promulgated pursuant to the Securities Act.

         5.3.     RULE 144. Such Purchaser acknowledges that the Shares must be
held indefinitely unless subsequently registered for resale under the
Securities Act or unless an exemption from such registration is available. Such
Purchaser is aware of the provisions of Rule 144 promulgated under the
Securities Act which permit limited resale of securities purchased in a private
placement, subject to the satisfaction of certain conditions, including, among
other things, the existence of a public market for the shares, the availability
of certain current public information about the Company, the resale occurring
not less than one year after a party has purchased and fully paid for the
security to be sold, the sale being effected through a "broker's transaction"
or in a transaction directly with a "market maker" and the number of shares
being sold during any three-month period not exceeding specified limitations.

         5.4.     CONFIDENTIAL ACCESS TO INFORMATION. Such Purchaser has had an
opportunity to discuss the Company's business, management and financial affairs
with its management. It has also had an opportunity to ask questions of
officers of the Company, which questions were answered to its satisfaction.
Such Purchaser understands that such discussions, as well as any written
information issued by the Company, were intended to describe certain aspects of
the Company's business and prospects. Pursuant to a confidentiality agreement,
as contemplated by the SEC's Regulation FD, such Purchaser acknowledges that it
has been provided access to material, non-public information and that the
Purchaser will keep all such information confidential except to the extent it
becomes public through no fault of the Purchaser. Further, the Purchaser
acknowledges and understands the fact that the Company is seeking to effect the
private placement of the Shares is material non-public information and
disclosure of such information or use of such information by the Purchasers or
anyone receiving such information from the Purchasers in connection with the
purchase, sale or trade of the Company's securities (other than use by the
Purchasers in acquiring the Shares), or any hedging, derivative or similar
transactions or activities involving the Company's securities, is a violation
of securities laws. THE PURCHASER UNDERSTANDS THAT ITS INVESTMENT IN THE SHARES
INVOLVES A HIGH DEGREE OF RISK.

         5.5      ORGANIZATION; AUTHORIZATION. The Purchaser is a corporation,
a limited liability company or a partnership duly formed, validly existing and
in good standing under the laws of the jurisdiction of its organization with
the requisite power and authority, to enter into and to consummate the
transactions contemplated by the Agreements and otherwise to carry out its
obligations under the Agreements. The purchase by such Purchaser of the Shares
hereunder has been duly authorized by all necessary action on the part of such
Purchaser. This Agreement, when executed and delivered by such Purchaser, will

                                      10
<PAGE>

constitute a valid and binding obligation of the Purchaser, enforceable in
accordance with its terms, subject to the Bankruptcy and Equity Exception.

         5.6.     RESTRICTIVE LEGEND. Such Purchaser understands that the
certificates evidencing the Shares, will bear the following legends:

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES, OR "BLUE
         SKY," LAWS OF ANY STATE OR OTHER DOMESTIC OR FOREIGN JURISDICTION.
         THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED,
         TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A REGISTRATION
         STATEMENT IN EFFECT UNDER THE SECURITIES ACT AND OTHER APPLICABLE LAWS
         OR A WRITTEN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
         REGISTRATION IS NOT REQUIRED AND THAT AN EXEMPTION FROM SUCH
         REGISTRATION IS AVAILABLE FOR SUCH TRANSACTIONS UNDER THE SECURITIES
         ACT AND OTHER APPLICABLE LAWS."

         In addition, the Purchasers acknowledge that each certificate for
Shares shall bear any additional legend required by any other applicable
domestic or foreign securities or blue sky laws.

         The Company will direct its transfer agent and registrar to maintain
stop transfer instructions on record for the Shares until it has been notified
by the Company, upon the advice of counsel, that such instructions may be
waived consistent with the Securities Act and applicable domestic and foreign
securities laws. Such stop transfer instructions will limit the method of sale
of the Shares, consistent with Rule 144 or other available exemptions from
registration under the Securities Act. Any transfers other than pursuant to an
effective registration statement will require an opinion of counsel reasonably
satisfactory to the Company and its counsel prior to such transfers.

         5.7.     NO GOVERNMENTAL REVIEW. Each Purchaser understands that no
United States federal or state agency or any other government or governmental
agency or authority has passed upon or made any recommendation or endorsement
of the Shares.

         5.8.     RESIDENCY. Such Purchaser is a resident of the jurisdiction
set forth immediately below such Purchaser's name on Schedule 1 hereto.

         5.9.     INVESTMENT INTENT. Such Purchaser is acquiring the Shares for
investment for its own account, not as a nominee or agent, and not with the
view to any distribution thereof. Such Purchaser understands and agrees that
the Shares have not been registered under the Securities Act by reason of the
exemption from the registration provisions of the Securities Act contained in
Rule 506 of Regulation D and Section 4(2) of the Securities Act, the
availability of which depends upon, among other things, the bona fide nature of
the investment intent and the accuracy of such Purchaser's representations,
warranties and covenants as expressed herein, which are being relied upon by
the Company and the Placement Agent.

                                      11
<PAGE>

                                   SECTION 6

      CONDITIONS TO PURCHASERS' AND PLACEMENT AGENT'S OBLIGATIONS TO CLOSE

         The obligations of the Placement Agent to close, and of each Purchaser
to purchase the Shares at the Closing, is subject to the fulfillment of the
following conditions, any of which may be waived by a Purchaser:

         6.1.     REPRESENTATIONS AND WARRANTIES CORRECT. The representations
and warranties made by the Company herein shall be true and correct in all
material respects as of the date when made and as of the Closing.

         6.2.     COVENANTS. All covenants, agreements and conditions contained
in this Agreement to be performed by the Company on or prior to the Closing
shall have been performed or complied with in all material respects.

         6.3.     NO INJUNCTION. No statute, rule, regulation, order, decree,
ruling or injunction shall have been enacted, entered, promulgated, endorsed or
threatened or is pending by or before any Governmental Authority of competent
jurisdiction which restricts, prohibits or threatens to restrict or prohibit
the consummation of any of the transactions contemplated by the Agreements.

         6.4.     NO SUSPENSIONS OF TRADING IN COMMON STOCK. The trading in the
Common Stock shall not have been restricted or suspended by the Commission,
Nasdaq or any other market or exchange where such Common Stock is traded
(except for any suspension of trading of limited duration solely to permit
dissemination of material information regarding the Company).

         6.5.     LISTING OF COMMON STOCK. On the date of the Closing or as
soon as possible thereafter, the Shares shall have been listed for trading or
quotation on Nasdaq.

         6.6      ADVERSE CHANGES. Since the date of the financial statements
included in the Company's Quarterly Report on Form 10-Q/A last filed prior to
the date of this Agreement, no event which has had or could reasonably be
expected to have a Material Adverse Effect shall have occurred which has not
been disclosed in writing to the Purchasers and the Placement Agent.

         6.7.     LITIGATION. No Proceeding shall have been instituted or
threatened against the Company which could reasonably be expected to,
individually or in the aggregate, have a Material Adverse Effect.

         6.8.     CHANGE OF CONTROL. No Change of Control shall have occurred
between the date hereof and the Closing. As used herein, "Change of Control"
means the occurrence of any of (i) an acquisition after the date hereof by an
individual or legal entity or "group" (as described in Rule 13d-5(b)(1)
promulgated under the Exchange Act), other than the Purchasers or any of their
affiliates (as defined in Rule 501(b) under the Securities Act) ("Affiliates"),
of in excess of 19.9% of the voting securities of the Company, (ii) a
replacement of more than one-half of the members of the Company's Board of
Directors that is not approved by a majority of those individuals who are
members of the Board of Directors on the date hereof, or their duly elected
successors who are directors immediately prior to such transaction, in one or a
series of related transactions, (iii) the merger of the Company with or into
another Person, unless following such transaction, the holders of the Company's
securities continue to hold at least 51% of the voting securities of the
surviving or continuing corporation following such transaction, (iv) the
consolidation or sale of all or substantially all of the assets of the Company
in one or a series of related

                                      12
<PAGE>

transactions or (v) the execution by the Company of an agreement to which the
Company is a party or by which it is bound, providing for any of the events set
forth above in clauses (i), (ii), (iii) or (iv).

         6.9.     CERTIFICATE OF INCORPORATION. The Company shall have
delivered to each of the Purchasers a copy of a certificate evidencing the
incorporation and good standing of the Company, issued by the Secretary of
State of the state where the Company is organized, as of a date within 10 days
of the Closing. The Company shall have delivered to each of the Purchasers, or
their representatives, acting on behalf of all of the Purchasers, a copy of a
certificate evidencing the qualification and good standing of the Company in
such other states or jurisdictions where the Company's ownership or operation
of its properties or the conduct of its business require the Company to be
qualified to do business as a foreign corporation, where the failure to be
qualified in good standing would have a Material Adverse Effect.

         6.10.    COMPLIANCE CERTIFICATE. Should the Closing occur as of a date
other than the date of this Agreement, the Company shall have delivered to the
Purchaser a certificate of the Company executed by the President of the
Company, dated as of the Closing, certifying to the fulfillment of the
conditions specified in Section 6 of this Agreement.

         6.11.    SECRETARY'S CERTIFICATE. The Company shall have delivered to
the Purchasers a certificate of the Company executed by the Chief Financial
Officer and the Secretary of the Company, dated as of the Closing, certifying
(i) resolutions adopted by the Board of Directors of the Company authorizing
the execution of the Agreements and the transactions contemplated hereby and
thereby, including the issuance of the Shares and the filing of the
Registration Statement; (ii) the Certificate of Incorporation and Bylaws of the
Company, each as amended, and copies of the third party consents, approvals and
filings required in connection with the consummation of the transactions
contemplated by the Agreements; and (iii) such other documents relating to the
transactions contemplated by the Agreements as the Purchasers or the Placement
Agent may reasonably request.

         6.12.    REGISTRATION RIGHTS AGREEMENT. The Company and the Purchasers
                  shall have executed, entered into and delivered the
Registration Rights Agreement, in substantially the form attached hereto as
Exhibit A.

         6.13.    OPINION OF COUNSEL. At the Closing, the Purchasers and the
Placement Agent shall have received the opinion of Womble Carlyle Sandridge &
Rice, dated as of Closing, in the form set forth below and otherwise reasonably
satisfactory to the Purchasers and the Placement Agent, and their respective
counsel substantially to the effect that:

                  (a)      The Company is a corporation in existence and in
         good standing under the laws of the State of Delaware, with corporate
         power to execute, deliver and perform its obligations under this
         Agreement, the Registration Rights Agreement and the other documents
         and agreements to be executed by the Company at the Closing in
         connection therewith (collectively, the "Operative Documents") and to
         carry on its business as now conducted;

                  (b)      The execution, delivery and performance by the
         Company of each of the Operative Documents have been authorized by the
         Company by all necessary corporate action;

                  (c)      No Consent or other action by, or filing or
         registration with, any Governmental Authority is required to be
         obtained on or prior to the date hereof in connection with (i) the
         execution, delivery and performance by the Company of the Operative
         Documents and (ii) the offer, sale and issuance of the Shares in
         accordance with the Operative Documents, except for

                                      13
<PAGE>

         Consents, actions, filings or registrations that, if not obtained or
         made, are not reasonably likely to have a Material Adverse Effect;

                  (d)      The execution, delivery and performance by the
         Company of its obligations under the Agreement and the other Operative
         Documents (in each case assuming due authorization and execution by
         each party other than the Company), and the consummation by the
         Company of the transactions provided for therein (including the
         issuance, sale and delivery of the Shares (other than with respect to
         the delivery in book-entry form of Shares)) do not (i) violate any
         provision of the Certificate of Incorporation or Bylaws, (ii) breach
         or result in a default under any agreement listed in Annex A to this
         opinion, or (iii) to our knowledge, violate any provision of any law,
         rule or regulation or any order of any court or Governmental Authority
         that is binding on the Company and known to such counsel to be
         applicable to the Company;

                  (e)      This Agreement and the Registration Rights Agreement
         each have been duly authorized, executed and delivered by the Company
         and, assuming the due execution and delivery thereof by the Purchasers
         where applicable, are constitute valid and binding obligations of the
         Company, enforceable against the Company;

                  (f)      The Shares to be issued pursuant to the Agreement
         have been duly authorized by all necessary corporate action on the
         part of the Company and, when issued to a Purchaser against payment
         therefor in accordance with the Agreement, will be validly issued,
         fully paid and nonassessable;

                  (g)      The Company is not an "investment company" or a
         company "controlled by" or required to register as an investment
         company as such terms are defined in the 1940 Act and the SEC's rules
         and regulations thereunder; and

                  (h)      Assuming the accuracy and completeness of the
         Purchasers' representations and warranties in Section 5 of this
         Agreement, the offer, sale and issuance of the Shares as contemplated
         by the Agreement are exempt from the registration requirements under
         Section 5 of the Securities Act.

         Such opinions shall be accompanied by a statement of negative
assurance substantially to the following effect:

         In addition, in the course of its assistance in the preparation of the
Offering Memorandum, such counsel participated in conferences with officers and
other representatives of the Company, the Placement Agent, counsel to the
Placement Agent and representatives of the independent public accountants of
the Company, at which conferences the contents of the Offering Memorandum were
discussed. Although such counsel does not pass upon and does not assume any
responsibility for the accuracy, completeness or fairness of the statements
contained in the Offering Memorandum and has not independently verified the
accuracy, completeness or fairness of such statements, on the basis of the
foregoing and the information that was disclosed to it (relying as to
materiality to the extent such counsel deemed appropriate upon the officers and
other representatives of the Company), (i) no facts came to its attention that
lead it to believe that the Offering Memorandum (including any document filed
under the 1934 Act and incorporated by reference therein), as of its effective
date, contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein not misleading (except for the financial statements,
including the notes and schedules thereto and the auditor's report thereon, or
any other information of a financial, numerical, statistical or accounting
nature

                                      14
<PAGE>

set forth or referred to in the Offering Memorandum or any document
incorporated therein by reference or any exhibits thereto, as to which such
counsel expresses no view).

         Such opinions may be subject to such assumptions, qualifications and
limitations that are customary and reasonably acceptable to the Purchaser and
the Placement Agent. Without limiting the generality of the foregoing, such
counsel (i) need not express any opinion with regard to the application of laws
of any jurisdiction other than the Federal law of the United States which are,
in such counsel's experience, normally directly applicable to the Offering and
the Delaware General Corporation Law, (ii) may rely, as to matters of fact, on
representations or certificates of responsible officers of the Company and
certificates of public officials, (iii) may express no opinion as to the effect
of (a) bankruptcy, insolvency, reorganization, arrangements, fraudulent
transfer, moratorium or similar laws relating to or affecting the rights of
creditors and (b) general principles of equity, including, without limitation,
concepts of materiality, reasonableness, good faith and fair dealing, the
exercise of judicial discretion, and the possible unavailability of specific
performance or injunctive relief, regardless of whether considered in a
proceeding in equity or at law, (iv) may express no opinion as to compliance
with the anti-fraud or information delivery provisions of applicable securities
laws, (v) may express no opinion as to compliance with the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and (vi) may express no opinion
as to the enforceability of the indemnification provisions of the Operative
Documents to the extent the provisions thereof may be subject to limitations of
public policy and the effect of applicable statutes and judicial decisions.

         6.14.    OTHER DOCUMENTS. The Company shall have delivered to each
Purchaser such other documents relating to the transactions contemplated by the
Agreements as the Purchasers or their counsel may reasonably request.

                                   SECTION 7

                        CONDITIONS TO CLOSING OF COMPANY

         The Company's obligation to sell and issue the Shares at the Closing
is, at the option of the Company, subject to the fulfillment as of the Closing
of the following conditions:

         7.1.     REPRESENTATIONS. The representations and warranties made by
the Purchasers herein shall be true and correct in all material respects on the
dates made and on the date of Closing.

         7.2.     PERFORMANCE BY THE PURCHASERS. Each Purchaser shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by the Agreements to be performed, satisfied
or complied with by such Purchaser at or before the Closing.

         7.3.     NO INJUNCTION. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated,
endorsed or threatened or is pending by or before any Governmental Authority of
competent jurisdiction which prohibits or threatens to prohibit the
consummation of any of the transactions contemplated by the Agreements.

                                   SECTION 8

                                 MISCELLANEOUS

         8.1.     GOVERNING LAW. This Agreement shall be governed in all
respects by the laws of the State of North Carolina, without reference to its
conflict of laws principles.

                                      15
<PAGE>

         8.2.     SURVIVAL. The representations, warranties, covenants and
agreements made herein shall survive the closing of the transactions
contemplated hereby for a period of eighteen (18) months.

         8.3.     SUCCESSORS AND ASSIGNS. Except as otherwise provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto,
provided that the rights of the Purchasers to purchase the Shares shall not be
assignable without the consent of the Company.

         8.4.     NOTICES, ETC. All notices and other communications required
or permitted hereunder shall be in writing and shall be mailed by United States
mail, postage prepaid, by reliable overnight delivery service such as UPS or
FedEx, or by facsimile transmission, or otherwise delivered by hand or by
messenger, addressed (a) if to any Purchaser, at the Purchaser's address set
forth on Schedule 1, or at such other address as such Purchaser shall have
furnished to the Company in writing, or (b) if to any other holder of any
shares, at such address as such holder shall have furnished the Company in
writing, or, until any such holder so furnishes an address to the Company, then
to and at the address of the last holder of such shares who has so furnished an
address to the Company, or (c) if to the Company, one copy should be sent to
the Company at the address listed below, in each case with a copy to the
Placement Agent at the address also listed below.

<TABLE>
<CAPTION>
                   Company:                                       Placement Agent:
                   -------                                        ---------------

                   <S>                                            <C>
                   Blue Rhino Corporation                         SunTrust Robinson Humphrey
                   104 Cambridge Plaza Drive                      3333 Peachtree Road, N.E.
                   Winston-Salem, NC 27104                        Atlanta, Georgia 30326
                   Facsimile: (336) 659-6750                      Attention: Rudy Scarito
                   Attention: Lori Hall                           Facsimile: (404) 926-5947
</TABLE>

         Each such notice or other communication shall for all purposes of this
Agreement be treated as effective or having been given when delivered, or if by
facsimile transmission, as indicated by the facsimile imprint date.

         8.5.     DELAYS OR OMISSIONS. Except as expressly provided herein, no
delay or omission to exercise any right, power or remedy accruing to any
Purchaser or the Placement Agent upon any breach or default of the Company
under the Agreements shall impair any such right, power or remedy of such
Purchaser or Placement Agent, nor shall it be construed to be a waiver of any
such breach or default, or an acquiescence therein, or of any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any Purchaser or the Placement Agent of any breach or
default under this Agreement, or any waiver on the part of any party hereto or
the Placement Agent of any provisions or conditions of this Agreement, must be
in writing and shall be effective only to the extent specifically set forth in
such writing. All remedies, either under this Agreement or by law or otherwise
afforded to any Purchaser, shall be cumulative and not alternative.

         8.6.     EXPENSES. The Company and the Purchasers shall each bear
their own legal and other expenses with respect to the Agreements and the
Offering.

         8.7      COUNTERPARTS. This Agreement may be executed in two or more
identical counterparts, each of which shall be deemed an original and all of
which, together, shall constitute one and the same agreement. Any signature
that is delivered by facsimile transmission shall be valid and binding, with
the same force and effect as if an original, manually signed counterpart.

                                      16
<PAGE>

         8.8.     SEVERABILITY. In the event that any provision of this
Agreement is unenforceable, the remaining provisions shall continue in full
force and effect.

         8.9.     SECTION HEADINGS, ETC. The titles and subtitles used in this
Agreement are used for convenience only and are not considered in construing or
interpreting this Agreement. As used herein, any gender shall include all other
genders, and the singular shall include the plural and vice versa. The terms
"include," "including" and similar terms shall mean include without limitation,
whether by enumeration or otherwise.

         8.10.    NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for
the benefit of the parties hereto, the Placement Agent (and its directors,
officers, agents, Affiliates and controlling persons), and their respective
permitted successors and assigns, and no other person is intended to or shall
have any rights hereunder whether as a third party beneficiary or otherwise.

         8.11.    INDEPENDENT NATURE OF PURCHASERS' OBLIGATIONS AND RIGHTS. The
obligations of each Purchaser hereunder are several and not joint with the
obligations of the other Purchasers hereunder, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser hereunder. Nothing contained herein or in any other agreement or
document delivered at the Closing, and no action taken by any Purchaser
pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of Person, or
create a presumption that the Purchasers are in any way acting in concert with
respect to such obligations or the transactions contemplated by this Agreement.
Each Purchaser shall be entitled to protect and enforce its rights, including,
without limitation, the rights arising out of the Agreements, and it shall not
be necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.

         8.12.    FURTHER ASSURANCES. Each party shall do and perform, or cause
to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents,
as the other parties may reasonably request in order to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

         8.13.    CONFIDENTIALITY. All material, non-public information
disclosed by the Company to the Purchasers pursuant to this Agreement or
otherwise shall be held strictly confidential and used by the Purchasers solely
for evaluating purchases of Shares in this Offering, provided this obligation
shall not apply to any information that is generally available to the public or
becomes available to the public without any disclosure by a Purchaser or the
Placement Agent.

         8.14.    ENTIRE AGREEMENT; AMENDMENT. This Agreement and the
Registration Rights Agreement constitute the entire understanding and agreement
between the Purchasers and the Company with regard to the subject matter.
Except as expressly provided herein, this Agreement, any of the other
Agreements or any term hereof may be amended, modified, waived or discharged
only by a written instrument signed by the party waiving any term, condition,
or right or remedy that benefits it hereunder.

                                      17
<PAGE>

         IN WITNESS WHEREOF, each Purchaser and the Company, intending to be
legally bound regardless of the aggregate number of Shares actually sold to all
Purchasers pursuant to this Offering, have caused this Agreement to be executed
by their respective officers or officials thereunto duly authorized as of the
date first above written.

                           BLUE RHINO CORPORATION

                           By: /s/ Billy D. Prim
                               ------------------------------------------
                               Name:  Billy D. Prim
                                      -----------------------------------
                               Title: President and CEO
                                      -----------------------------------

                           PURCHASERS:

                           LEGUNITAS PARTNERS, LP

                           By: /s/ Jon D. Gruber
                               ------------------------------------------
                               Name:  Jon D. Gruber
                                      -----------------------------------
                               Title: GMCM Managing Member
                                      -----------------------------------

                           GRUBER FAMILY FOUNDATION

                           By: /s/ Jon D. Gruber
                               ------------------------------------------
                               Name:  Jon D. Gruber
                                      -----------------------------------
                               Title: Secretary
                                      -----------------------------------

                           HAMILTON COLLEGE

                           By: /s/ Jon D. Gruber
                               ------------------------------------------
                               Name:  Jon D. Gruber
                                      -----------------------------------
                               Title: GMCM Managing Member,
                                      -----------------------------------
                                      Attorney-in-Fact
                                      -----------------------------------

                           GRUBER & MCBAINE INTERNATIONAL

                           By: /s/ Jon D. Gruber
                               ------------------------------------------
                               Name:  Jon D. Gruber
                                      -----------------------------------
                               Title: GMCM Managing Member,
                                      -----------------------------------
                                      Attorney-in-Fact
                                      -----------------------------------

                           /s/ Jon D. Gruber
                           ----------------------------------------------
                           Jon D. Gruber
                           ----------------------------------------------

                                       18
<PAGE>

                           /s/ Linda W. Gruber
                           ----------------------------------------------
                           Linda W. Gruber
                           ----------------------------------------------

                           JON D. GRUBER TTEE LINDSAY D. GRUBER

                           By: /s/ Jon D. Gruber
                               ------------------------------------------
                               Name:  Jon D. Gruber
                                      -----------------------------------
                               Title: Trustee
                                      -----------------------------------

                           JON D. GRUBER TTEE JONATHAN W. GRUBER

                           By: /s/ Jon D. Gruber
                               ------------------------------------------
                               Name:  Jon D. Gruber
                                      -----------------------------------
                               Title: Trustee
                                      -----------------------------------

                           /s/ J. Patterson McBaine
                           ----------------------------------------------
                           J. Patterson McBaine
                           ----------------------------------------------

                           ZURICH INSTITUTIONAL BENCHMARK MASTER FUND, LTD.

                           By: /s/ Jon D. Gruber
                               ------------------------------------------
                               Name:  Jon D. Gruber
                                      -----------------------------------
                               Title: GMCM Managing Member,
                                      -----------------------------------
                                      Attorney-in-Fact
                                      -----------------------------------

                           COLONIAL FUND, LLC

                           By: /s/ Cary G. Brody
                               ------------------------------------------
                               Name:  Cary G. Brody
                                      -----------------------------------
                               Title: President
                                      -----------------------------------

                           GULFSTREAM PARTNERS, L.P.

                           By: /s/ Piers M. MacDonald
                               ------------------------------------------
                               Name:  Piers M. MacDonald
                                      -----------------------------------
                               Title: Managing General Partner
                                      -----------------------------------

                                       19
<PAGE>

                           HERMES PARTNERS, L.P.

                           By: /s/ Paul Flather
                               ------------------------------------------
                               Name:  Paul Flather
                                      -----------------------------------
                               Title: President of Hermes Advisors
                                      -----------------------------------

                           ULTRA HERMES FUND, LTD.

                           By: /s/ Paul Flather
                               ------------------------------------------
                               Name:  Paul Flather
                                      -----------------------------------
                               Title: President of Hermes Advisors
                                      -----------------------------------

                           MARLIN FUND, L.P.

                           By: /s/ Michael W. Masters
                               ------------------------------------------
                               Name:  Michael W. Masters
                                      -----------------------------------
                               Title: Managing Member of General Partner
                                      -----------------------------------

                           MARLIN FUND II, L.P.

                           By: /s/ Michael W. Masters
                               ------------------------------------------
                               Name:  Michael W. Masters
                                      -----------------------------------
                               Title: Managing Member of General Partner
                                      -----------------------------------

                           MARLIN FUND OFFSHORE, LTD.

                           By: /s/ Michael W. Masters
                               ------------------------------------------
                               Name:  Michael W. Masters
                                      -----------------------------------
                               Title: Managing Member of Investment
                                      -----------------------------------
                                      Manager
                                      -----------------------------------

                           STRAUS PARTNERS, L.P.

                           By: /s/ Melville Straus
                               ------------------------------------------
                               Name:  Melville Straus
                                      -----------------------------------
                               Title: General Partner
                                      -----------------------------------

                                       20
<PAGE>

                           STRAUS-SPELMAN L.P.

                           By: /s/ Melville Straus
                               ------------------------------------------
                               Name:  Melville Straus
                                      -----------------------------------
                               Title: General Partner
                                      -----------------------------------

                           STRAUS-GEPT, L.P.

                           By: /s/ Melville Straus
                               ------------------------------------------
                               Name:  Melville Straus
                                      -----------------------------------
                               Title: General Partner
                                      -----------------------------------

                           COLUMBUS CAPITAL PARTNERS, L.P.

                           By: /s/ Matthew D. Ockner
                               ------------------------------------------
                               Name:  Matthew D. Ockner
                                      -----------------------------------
                               Title: Managing Member of
                                      -----------------------------------
                                      Columbus Capital Management, LLC
                                      -----------------------------------
                                      General Partner
                                      -----------------------------------

                           COLUMBUS CAPITAL OFFSHORE FUND, LTD.

                           By: /s/ Matthew D. Ockner
                               ------------------------------------------
                               Name:  Matthew D. Ockner
                                      -----------------------------------
                               Title: Managing Member of
                                      -----------------------------------
                                      Columbus Capital Management, LLC
                                       -----------------------------------
                                      Investment Manager
                                      -----------------------------------

                                       21

<PAGE>

                                                       Stock Purchase Agreement

                                   SCHEDULE 1

                             SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
Name and Address                  No. of Shares                  Purchase Price
----------------                  -------------                  --------------

<S>                               <C>                            <C>
</TABLE>

                                      22

<PAGE>

                                                       Stock Purchase Agreement

                                   SCHEDULE 2

                   STOCK CERTIFICATE REGISTRATION INFORMATION

         Pursuant to the Stock Purchase Agreement, please provide us with the
following information:

         1.       The exact name that
your Shares are to be registered in (this
is the name that will appear on your
stock certificate(s)). You may use a
nominee name if appropriate:
                                               --------------------------------

         2.       The relationship between
the Purchaser of the Shares and the
Registered Holder listed in
response to item 1 above:
                                               --------------------------------

         3.       The mailing address of
the Registered Holder listed in
response to item 1 above:
                                               --------------------------------

                                               --------------------------------

                                               --------------------------------

                                               --------------------------------

-------------------------------------------------------------------------------
                              SUBSTITUTE FORM W-9

Under the penalties of perjury, I certify that: (1) the Social Security Number
or Taxpayer Identification Number given above is correct; and (2) I am not
subject to backup withholding either because I have not been notified that I am
subject to backup withholding as a result of a failure to report all interest
or dividends, or because the Internal Revenue Service has notified me that I am
no longer subject to backup withholding. Instructions: You must cross out #2
above if you have been notified by the Internal Revenue Service that you are
subject to backup withholding because of under reporting interest or dividends
on your tax return and if you have not received a notice from the Internal
Revenue Service advising you that backup withholding due to notified payee
under reporting has terminated.

SIGNATURE*                               DATE:                           , 2002
          ------------------------------      --------------------------
-------------------------------------------------------------------------------

                                      23
<PAGE>

                                                       Stock Purchase Agreement

                                   EXHIBIT A

                         REGISTRATION RIGHTS AGREEMENT

                                      24

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