Document:

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                                                                     Exhibit 4.1

                         REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the "Agreement") is made and
                                              ---------
entered into as of March 31, 2000 between BLUE RHINO CORPORATION, a Delaware
corporation (the "Company"), and the parties named on Schedule 1 attached, who
are assignee-holders (the "Holders") of $7,000,000 (subject to adjustment at
Closing) of common stock of the Company, received in connection with the Asset
Purchase Agreement between the Company, as Buyer, and Uniflame, Inc., as seller.

     WHEREAS, in order to induce the Holders to cause Uniflame, Inc. to
execute and perform the aforesaid Asset Purchase Agreement, the Company has
agreed to grant to the Holders the registration rights set forth in this
Agreement.

     NOW, THEREFORE, the parties to this Agreement hereby agree as follows:

     Unless otherwise defined herein, capitalized terms so used herein and
not defined shall have the same meaning as provided in the aforesaid Asset
Purchase Agreement.

     The parties hereby agree as follows:

1.   Certain Definitions.
     -------------------

As used in this Agreement, the following terms shall have the following
respective meanings:

     "Asset Purchase Agreement" means the agreement executed by the Company and
      ------------------------
Uniflame, Inc. and the Holders, involving the sale of the assets of Uniflame,
Inc. to the Company.

     "Business Day" means any day, other than a Saturday, Sunday or legal
      ------------
holiday, on which banks in the State of New York are open for business.

     "Commission" means the Securities and Exchange Commission.
      ----------

     "Common Stock" means the Common Stock, par value $0.001 per share, of the
      ------------
Company, as constituted on the date hereof, any shares of the Company's capital
stock into which such Common Stock shall be changed, or any shares of the
Company's capital stock resulting from any reclassification of such Common Stock
or recapitalization of the Company.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, or
      ------------
any successor statute thereto, and the rules and regulations of the Commission
promulgated thereunder, all as the same shall be in effect at the time.

     "Holders" means the Holders referred to in the Preamble and any other
      -------
person holding Registrable Securities to whom these registration rights have
been assigned pursuant to Section 10(f) of this Agreement.

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     "Majority Holders" means at any time the holders of a majority of the
      ----------------
Registrable Securities.

     "Person" shall mean an individual, partnership, corporation, association,
      ------
trust, joint venture, unincorporated organization and any government,
governmental department or agency or political subdivision thereof.

     "Registrable Securities" means (i) all Common Stock issued or issuable by
      ----------------------
the Company and owned by Holders; (ii) any Common Stock or other securities
issued or issuable to Holders upon any stock split, stock dividend,
recapitalization, or similar event; (iii) securities issued in replacement or
exchange of any of the securities issued in clauses (i) or (ii) above; (iv) any
Common Stock issued as, or issued directly or indirectly upon the conversion or
exercise of other securities issued as, a dividend or other distribution with
respect to or in replacement of any Common Stock or other securities referred to
in (i), (ii) or (iii); or (v) any Common Stock issuable directly or indirectly
upon the conversion or exercise of other securities that were issued as a
dividend or other distribution with respect to or in replacement of any
securities referred to in (i), (ii) or (iii); in all cases (i), (ii), (iii) and
(iv) above, such shares of Common Stock and other securities shall remain
Registrable Securities only until a Registration Statement(s) covering such
shares of Common Stock and other securities has been declared effective by the
Commission and all of such shares of Common Stock and other securities have been
disposed of pursuant to such effective Registration Statement(s) or have been
otherwise disposed of in a transaction after which disposition such Common Stock
or other securities became freely tradable.

     "Registration Expenses" means all expenses incident to the Company's
      ---------------------
performance of or compliance with this Agreement, including, without limitation,
all registration, filing, listing and National Association of Securities
Dealers, Inc. ("NASD") fees, all fees and expenses of complying with securities
or blue sky laws, all word processing, duplicating and printing expenses, all
messenger and delivery expenses, any transfer taxes, the fees and expenses of
the Company's legal counsel and independent public accountants, including the
expenses of any special audits or "cold comfort" letters required by or incident
to such performance and compliance, fees and disbursements of one counsel for
all of the Holders, or sellers of securities; provided, however, that
                                              --------  -------
Registration Expenses shall not include underwriting discounts and commissions
or fees and disbursements of Underwriters.

     "Securities Act" means the Securities Act of 1933, as amended, or any
      --------------
successor statute thereto, and the rules and regulations of the Commission
promulgated thereunder, all as the same shall be in effect at the time.

     "Underwriter" means a securities dealer who purchases any Registrable
      -----------
Securities as principal in an underwritten offering and not as part of such
dealer's market making activities.

     "Warrants" means the warrants to purchase shares of Common Stock of the
      --------
Company issued to the persons who purchased Bridge Notes.

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2.   Registration.
     ------------

     (a)  Demand Registration. At any time commencing six (6) months after
          -------------------
closing of the sale transaction contemplated by the aforesaid Asset Purchase
Agreement and ending two years after said closing ("Protected Period") if the
Company has not provided the Holders with an effective registration statement
permitting them to freely and lawfully sell their common stock Registrable
Securities during the Protected Period, then upon written request by the
Majority Holders made to the Company that the Company effect the registration
under the Securities Act of all or part of the Registrable Securities (a "Demand
Registration"), the Company will use its diligent efforts to effect the
registration under the Securities Act of the Registrable Securities that the
Company has been so requested to register by such Majority Holders within ninety
(90) days after receipt of such request or within forty-five (45) days after
receipt of such request if the Company is qualified to file a registration
statement on Commission Form S-3 or any successor or similar short-form
registration statement (collectively, "Commission Form S-3"). The Company must
effect Demand Registrations pursuant to this Section 2(a) to the extent such
registrations may be effected on Commission Form S-3, but the Company shall not
be obligated to effect more than one (1) Demand Registration hereunder on
Commission Form S-1 or any other similar Commission Form.

     (b)  Piggyback Registration. If the Company for itself or any of its
          ----------------------
security holders shall at any time or times during the Protected Period
determine to register under the Securities Act any shares of its capital stock
or other securities (other than (i) the registration of an offer, sale or other
disposition of securities solely to employees of, or other persons providing
services to, the Company, or any subsidiary pursuant to an employee or similar
benefit plan registered on Form S-8 or similar or successor forms or (ii)
relating to a merger, acquisition or other transaction of the type described in
Rule 145 under the Securities Act or a comparable or successor rule, registered
on Form S-4 or similar or successor forms), on each such occasion the Company
will notify each Holder of such determination at least thirty (30) days prior to
the filing of such registration statement, and upon the request of any Holder
given in writing within twenty (20) days after the receipt of such notice,
subject to Section 2(f), the Company will use its diligent efforts as soon as
practicable thereafter to cause any of the Registrable Securities specified by
any such Holder to be included in such registration statement to the extent such
registration is permissible under the Securities Act and subject to the
conditions of the Securities Act (a "Piggyback Registration"). The rights
                                     ----------------------
granted to the Holders pursuant to this Section 2(b) shall be subordinate to any
previously granted piggyback registration rights granted by the Company.

     (c)  Registration Statement Form. The Company shall, if permitted by law,
          ---------------------------
effect any registration requested under Section 2 by the filing of a
registration statement on Commission Form S-3 and shall use its diligent efforts
to take any action necessary to maintain its eligibility to utilize Commission
Form S-3 to permit resales as requested by the Holders with respect to
"Transactions Involving Secondary Offerings" as described in General Instruction
I.B.3 of Commission Form S-3; provided however, Holder shall have the right to
cause the Company to

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satisfy the Holders' demand registration rights hereunder on SEC Form S-1 or
such similar form as then in existence.

     (d)  Expenses. The Company shall pay all Registration Expenses incurred in
          --------
connection with any Piggyback Registrations and any Demand Registrations.

     (e)  Effective Registration Statement. A Demand Registration or a Piggyback
          --------------------------------
Registration requested pursuant to Section 2(a) or Section 2(b), respectively,
shall not be deemed to have been effected unless the registration statement
filed with respect thereto in accordance with the Securities Act has become
effective with the Commission. Notwithstanding the foregoing, a registration
statement will not be deemed to have become effective if (i) after it has become
effective with the Commission, such registration is interfered with by any stop
order, injunction, or other order or requirement of the Commission or other
governmental agency or any court proceeding for any reason other than a
misrepresentation or omission by any Holder, or (ii) the conditions to closing
specified in the purchase agreement or underwriting agreement entered into in
connection with such registration are not satisfied.

     (f)  Priority in Registration. If a Demand Registration or a Piggyback
          ------------------------
Registration is an underwritten offering, and the managing Underwriters shall
give written advice to Majority Holders or the Company, as the case may be,
that, in their opinion, market conditions dictate that no more than a specified
maximum number of securities (the "Underwriter's Maximum Number") could
                                   ----------------------------
successfully be included in such registration, then the Company and the Holders
will be able to participate in such offering in the following order of priority:
(i) first, the Company shall be entitled to include in such registration that
number of securities that the Company proposes to offer and sell for its own
account in such registration and that does not exceed the Underwriter's Maximum
Number; (ii) second, the Company will be obligated and required to include in
such registration that number of shares of Registrable Securities that the
Holders thereof shall have requested to be included in such offering, along with
shares of the Company's common stock owned by holders of piggyback registration
rights issued hereinbefore who request to include their shares in such offering,
allocated between such holders and the Holders, first to holders of such rights
issued hereinbefore, and second to the Holders to the full extent of the
remaining portion of the Underwriter's Maximum Number.

     (g)  Acceptable Delays. Notwithstanding anything in this Section 2 to the
          -----------------
contrary, the Company shall have the right to delay any registration of
Registrable Securities requested pursuant to paragraph (a) of this Section 2 for
up to ninety (90) days if such registration would, in the judgment of the
Company's Board of Directors, substantially interfere with any material
transaction being considered at the time of receipt of the request from the
Holders.

     (h)  Exceptions to Registration. Notwithstanding anything in this Agreement
          --------------------------
to the contrary, the Company shall not be obligated to take any action to effect
registration, qualification or compliance with respect to its Registrable
Securities:

          (i)  in any jurisdiction that would require it to qualify generally to
do business where it is not already so qualified;

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          (ii)  that would subject it to taxation in a jurisdiction in which it
is not already subject generally to taxation;

          (iii) resulting in registering its securities in any jurisdiction
outside the United States.

     3.   Registration Procedures.
          -----------------------

     (a)  If and whenever the Company is required to use its diligent efforts to
effect the registration of any Registrable Securities under the Securities Act
as provided in Section 2, the Company, as expeditiously as possible and subject
to the terms and conditions of Section 2, will:

          (i)   prepare and file with the Commission the requisite registration
statement to effect such registration and use its diligent efforts to cause such
registration to become and remain effective;

          (ii)  permit any Holder who, in the reasonable judgment of such
Holder, might be deemed to be an underwriter or a controlling person of the
Company, to participate in the preparation of such registration statement;

          (iii) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective and
to comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such registration statement until the
earlier of such time as all of such securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers
thereof set forth in such registration statement or the expiration of twelve
months after such registration statement becomes effective;

          (iv)  furnish to the Holders such number of conformed copies of such
registration statement and of each such amendment and supplement thereto (in
each case including all exhibits), such number of copies of the prospectus
contained in such registration statement (including each preliminary prospectus
and any summary 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, as the purchaser or any Holder of Registrable
Securities to be sold under such registration statement may reasonably request;

          (v)   use its diligent efforts to register or qualify all Registrable
Securities covered by such registration statement under such other United States
state securities or blue sky laws of such jurisdictions as any Holder of
Registrable Securities to be sold under such registration statement shall
reasonably request, to keep such registration or qualification in effect for so
long as such registration remains in effect, and take any other action that may
be reasonably necessary or advisable to enable the Holder of Registrable
Securities to be sold under such registration statement to consummate the
disposition thereof in such jurisdictions;

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          (vi)   use its diligent efforts to cause all Registrable Securities
covered by such registration statement to be registered with or approved by such
other United States state governmental agencies or authorities as may be
necessary to enable the Holder of Registrable Securities to be sold under such
registration statement to consummate the intended disposition of such
Registrable Securities;

          (vii)  in the event of the issuance of any stop order suspending the
effectiveness of the registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any Registrable Securities included in such registration statement for sale in
any jurisdiction, the Company shall use its diligent efforts promptly to obtain
the withdrawal of such order;

          (viii) use it diligent efforts to furnish to the Holders of
Registrable Securities to be sold under such registration statement (1) an
opinion, dated the effective date of the registration statement, of the counsel
representing the Company for the purposes of such registration, addressed to the
Underwriters, if any, stating that such registration statement has become
effective under the Securities Act and that (i) to the diligent knowledge of
such counsel, no stop order suspending the effectiveness thereof has been issued
and no proceedings for that purpose have been instituted or are pending or
contemplated under the Securities Act; (ii) the registration statement, the
related prospectus, and each amendment or supplement thereto, comply as to form
in all material respects with the requirements of the Securities Act and the
applicable rules and regulations of the Commission thereunder (except that such
counsel need express no opinion as to financial statements contained therein);
(iii) such counsel has no reason to believe that either the registration
statement or the prospectus, or any amendment or supplement thereto, contains
any untrue statement of a material fact or omits a material fact necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading; (iv) the descriptions in the registration statement or the
prospectus, or any amendment or supplement thereto, of all legal and
governmental matters and contracts and other legal documents or instruments
provided to such counsel are accurate and fairly present the information
required to be shown; and (v) such counsel does not know of any legal or
governmental proceedings, pending or contemplated, required to be described in
the registration statement or prospectus, or any amendment or supplement
thereto, which are not described as required nor of any contracts or documents
or instruments of a character required to be described in the registration
statement or prospectus, or any amendment or supplement thereto or to be filed
as exhibits to the registration statement that are not described and filed as
required; and (2) a letter, dated the effective date of the registration
statement, from the independent certified public accountants of the Company,
addressed to the Underwriters, if any, stating that they are independent
certified public accountants within the meaning of the Securities Act and that
in the opinion of such accountants, the financial statements and other financial
data of the Company included in the registration statement or the prospectus, or
any amendment or supplement thereto, comply as to form in all material respects
with the applicable accounting requirements of the Securities Act; and such
letter from the independent certified public accountants shall additionally
cover such other financial matters (including information as to the period
ending not more than five business days prior to the date of such letter) with
respect to the registration in respect of which such letter is being given as
the Holders may reasonably request);

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          (ix)  immediately notify the Holders of Registrable Securities
included in such registration statement at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of its becoming
aware of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the
circumstances under which they were made, and at the request of the Holders
promptly prepare and furnish to the Holders a reasonable number of copies of a
supplement to or an amendment of such prospectus as may be 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
not misleading in the light of the circumstances under which they were made;

          (x)   otherwise use its diligent efforts to comply with all applicable
rules and regulations of the Commission, and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering the
period of at least twelve months, but not more than eighteen months, beginning
with the first full calendar month after the effective date of such registration
statement, which earnings statement shall satisfy the provisions of Section 11
(a) of the Securities Act and Rule 158 thereunder, and not file any amendment or
supplement to such registration statement or prospectus to which any Holder
shall have reasonably objected in writing on the grounds that such amendment or
supplement does not comply in all material respects with the requirements of the
Securities Act or of the rules or regulations thereunder, having been furnished
with a copy thereof at least two business days prior to the filing thereof;

          (xi)  provide a transfer agent for all Registrable Securities covered
by such registration statement not later than the effective date of such
registration statement; and

          (xii) use its diligent efforts to list all Registrable Securities
covered by such registration statement on any securities exchange on which any
of the Registrable Securities are then listed.

     (b)  The Company may require each Holder of Registrable Securities to be
sold under such registration statement, at the Company's expense, to furnish the
Company with such information and undertakings as it may reasonably request
regarding such Holder and the distribution of such securities as the Company may
from time to time reasonably request in writing.

     (c)  Each Holder, by execution of this Agreement, agrees (A) that upon
receipt of any notice from the Company, or upon such Holder's otherwise becoming
aware, of the happening of any event of the kind described in subdivision
(a)(ix) of this Section 3, such Holder will forthwith discontinue its
disposition of Registrable Securities pursuant to the registration statement
relating to such Registrable Securities until the receipt by such Holder of the
copies of the supplemented or amended prospectus contemplated by subdivision
(a)(ix) of this Section 3 and, if so directed by the Company, will deliver to
the Company all copies other than permanent

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file copies, then in possession of the Holders of the prospectus relating to
such Registrable Securities current at the time of receipt of such notice and
(B) that it will immediately notify the Company, at any time when a prospectus
relating to the registration of such Registrable Securities is required to be
delivered under the Securities Act, of the happening of any event as a result of
which information previously furnished by such Holder to the Company for
inclusion in such prospectus contains 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 not misleading in the light of the circumstances
under which they were made. In the event the Company or any such Holder shall
give any such notice, the period referred to in subdivision (a)(iii) of this
Section 3 shall be extended by a number of days equal to the number of days
during the period from and including the giving of notice pursuant to
subdivision (a)(ix) of this Section 3 to and including the date when such Holder
shall have received the copies of the supplemented or amended prospectus
contemplated by subdivision (a)(ix) of this Section 3.

4.   Underwritten Offerings.
     ----------------------

          (a) Underwritten Offering. In connection with any underwritten
              ---------------------
offering pursuant to a Demand Registration requested under Section 2(a), the
Company will enter into an underwriting agreement with the Underwriters for such
offering, to contain such representations and warranties by the Company and such
other terms as are customarily contained in agreements of that type, including,
without limitation, indemnities to the effect and to the extent provided in
Section 6. Each Holder participating in such underwritten registration shall be
a party to such underwriting agreement and may, at such Holder's option, require
that any or all of 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 each such Holder and
that any or all of the conditions precedent to the obligations of such
Underwriters under such underwriting agreement be conditions precedent to the
obligations of such Holder. No Holder participating in any such underwritten
registration shall be required to make any representations or warranties to or
agreements with the Company or the Underwriters other than representations,
warranties or agreements regarding such Holder and its intended method of
distribution and any other representation required by law.

          (b) Selection of Underwriters. If the Holders of a majority of the
              -------------------------
Registrable Securities participating in a Demand Registration so elect, the
offering of such Registrable Securities pursuant to such Demand Registration
shall be in the form of an underwritten offering. The Holders of a majority of
the Registrable Securities to be included in the Demand Registration shall
select one or more nationally recognized firms of investment bankers to act as
the lead managing Underwriter or Underwriters in connection with such offering
and shall select any additional investment bankers and managers to be used in
connection with the offering; provided that such Underwriter or Underwriters are
reasonably acceptable to the Company.

          (c) Holdback Agreements. Each Holder agrees, if so requested by the
              -------------------
managing Underwriter in each underwritten registration of the Company's capital
stock or other securities described in Section 2 (a) and Section 2(b), to sign
an agreement not to effect (except as part of such underwritten registration in
accordance with the provisions hereof) any sale, distribution,

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short sale, loan, grant of options for the purchase of, or otherwise dispose of,
any Registrable Securities for such period as such Underwriter requests, such
period in no event to commence earlier than seven (7) days prior to, or to end
more than 90 days after, the effective date of such registration.

5. Preparation, Reasonable Investigation.
   -------------------------------------

          In connection with the preparation and filing of each registration
statement under the Securities Act, the Company will give the Holders of
Registerable Securities to be sold under such registration statement, the
Underwriters, if any, and their respective counsel and accountants, advance
draft copies of such registration statement, each prospectus included therein or
filed with the Commission at least 5 business days prior to the filing thereof
with the Commission, and any amendments and supplements thereto promptly as they
become available, and will give each of them such access to its books and
records and such opportunities to discuss the business of the Company with its
officers and the independent public accountants who have certified its financial
statements as shall be necessary, in the opinion of such Holders and such
Underwriters' respective counsel, to conduct a reasonable investigation within
the meaning of the Securities Act.

6.  Indemnification and Contribution.
    --------------------------------

          (a)  Indemnification by the Company. In the event of any registration
               ------------------------------
under the Securities Act pursuant to Section 2 of any Registrable Securities
covered by such registration, the Company will, and hereby does, indemnify and
hold harmless each Holder of Registrable Securities to be sold under such
registration statement, each such Holder's legal counsel, each other person who
participates as an Underwriter in the offering or sale of such securities (if so
required by such Underwriter as a condition to including the Registrable
Securities of the Holders in such registration) and each other person, if any,
who controls any such Holder or any such Underwriter within the meaning of the
Securities Act (collectively, the "Indemnified Parties"), against any losses,
claims, damages or liabilities, joint or several, to which the Holders or
Underwriter or controlling person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of any
material fact contained in any registration statement under which such
securities were registered under the Securities Act, any preliminary prospectus,
final prospectus or summary prospectus contained therein or any document
incorporated therein by reference, or any amendment or supplement thereto, or
any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein in light of the
circumstances in which they were made not misleading, or arise out of any
violation by the Company of any rule or regulation promulgated under the
Securities Act or state securities law applicable to the Company and relating to
action or inaction required of the Company in connection with any such
registration, and the Company will reimburse the Indemnified Parties for any
legal or any other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, liability, action or
proceeding; provided, however, that the Company shall not be liable to any
            --------  -------
Indemnified Party in any such

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case to the extent that any such loss, claim, damage, liability (or action or
proceeding in respect thereof) or expense arises out of or is based upon any
untrue statement or alleged untrue statement or omission or alleged omission
made in such registration statement, any such preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement in reliance upon and in
conformity with written information furnished to the Company by such Indemnified
Party.

          (b) Indemnification by the Holders. The Company may require, as a
              ------------------------------
condition to including any Registrable Securities of any person or entity in any
registration statement filed pursuant to Section 2, that the Company shall have
received an undertaking reasonably satisfactory to it from such person or entity
to indemnify and hold harmless (in the same manner and to the same extent as set
forth in subdivision (a) of this Section 6) the Company, each director of the
Company, each officer of the Company and each other person, if any, who controls
the Company within the meaning of the Securities Act, with respect to any
statement or alleged statement in or omission or alleged omission from such
registration statement, any preliminary prospectus, final prospectus or summary
prospectus contained therein, or any amendment or supplement thereto, if, and
only if, such statement or alleged statement or omission or alleged omission was
made in reliance upon and in conformity with information furnished in writing to
the Company directly by such person or entity specifically for use therein;
provided, however, that the obligation of any Holder hereunder shall be limited
--------  -------
to an amount equal to the net proceeds received by such Holder upon the sale of
Registrable Securities sold in the offering covered by such registration.

          (c) Notices of Claims. Etc. Promptly after receipt by an Indemnified
              -----------------
Party of notice of the commencement of any action or proceeding involving a
claim referred to in the preceding subdivisions of this Section 6, such
Indemnified Party will, if a claim in respect thereof is to be made against a
party required to provide indemnification (an "Indemnifying Party"), give
written notice to the latter of the commencement of such action, provided,
                                                                 --------
however, that the failure of any Indemnified Party to give notice as provided
-------
herein shall not relieve the Indemnifying Party of its obligation under the
preceding subdivisions of this Section 6, except to the extent that the
Indemnifying Party is actually materially prejudiced by such failure to give
notice. In case any such action is brought against an Indemnified Party, unless
in such Indemnified Party's reasonable judgment a conflict of interest between
such Indemnified and indemnifying parties may exist in respect of such claim,
the Indemnifying Party shall be entitled to participate in and to assume the
defense thereof, jointly with any other Indemnifying Party similarly notified to
the extent that it may wish, with counsel reasonably satisfactory to such
Indemnified Party, and after notice from the Indemnifying Party to such
Indemnified Party of its election so to assume the defense thereof, the
Indemnifying Party shall not be liable to such Indemnified Party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation. No Indemnifying
Party shall consent to entry of any judgment or enter into any settlement
without the consent of the Indemnified Party which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation.

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          (d) Other Indemnification. Indemnification similar to that specified
              ---------------------
in the preceding subdivisions of this Section 6 (with appropriate modifications)
shall be given by the Company and each Holder of Registrable Securities included
in any registration statement with respect to any required registration or other
qualification of securities under any Federal or state law or regulation of any
governmental authority, other than the Securities Act.

          (e) Indemnification Payment. The indemnification required by this
              -----------------------
Section 6 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, to be made promptly, as and when bills
are received or expense, loss, damage or liability is incurred provided evidence
of such has been delivered to the Indemnifying Party.

          (f) Survival of Obligations. The obligations of the Company and of the
              -----------------------
Holders under this Section 6 shall survive the completion of any offering of
Registrable Securities under this Agreement.

          (g) Contribution. If the indemnification provided for in this Section
              ------------
6 is unavailable or insufficient to hold harmless an Indemnified Party, then
each Indemnifying Party shall contribute to the amount paid or payable to such
Indemnified Party as a result of the losses, claims, damages or liabilities
referred to in this Section 6 an amount or additional amount, as the case may
be, in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party or parties on the one hand and the Indemnified Party on the
other in connection with the statements or omissions which resulted in such
losses, claims, demands or liabilities as well as any other relevant equitable
considerations. The relative fault 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 parties on the one hand or the
Indemnified Party on the other and the parties' relative, intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission. The amount paid to an Indemnified Party as a result of
the losses, claims, damages or liabilities referred to in the first sentence of
this Section 6(g) shall be deemed to include any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating
or defending any action or claim which is the subject of this Section 6. No
person guilty of fraudulent misrepresentation within the meaning of Section
11(f) of the Securities Act shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. The amount due from any
Holder pursuant to this Section 6(g) shall be limited to an amount equal to the
net proceeds received by such Holder upon the sale of Registrable Securities
sold on the offering covered by such registration.

7. Covenants Relating to Rule 144.
   ------------------------------

          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
securities of the Company to the public without registration after such time as
a public market exists for the Common Stock of the Company, the Company agrees:

                                       11
<PAGE>

          (a) to make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date of the first registration under the Securities Act filed by
the Company for an offering of its securities to the general public;

          (b) to use its diligent efforts to then file with the Commission in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act, as amended (at any time after it has become
subject to such reporting requirements); and

          (c) so long as a Holder owns any Registrable Securities, to furnish to
the Holder forthwith upon request a written statement by the Company as to its
compliance with the reporting requirements of said Rule 144 (at any time after
90 days after the effective date of the first registration statement filed by
the Company for an offering of its securities to the general public), and of the
Securities Act and the Exchange Act (at any time after it has become subject to
such reporting requirements) a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents of 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.

8.   Other Registration Rights. The Company covenants and warrants that it shall
     -------------------------
not hereinafter grant to any Person any registration rights unless such rights
are subordinate to and not inconsistent with the rights granted or contained
herein, so long as any of the registration rights under this Agreement remain in
effect.

9.   Termination of Registration Rights. The right to cause the Company to
     ----------------------------------
effect the registration of Registrable Securities set forth herein shall
terminate when all Registrable Securities, (i) can be sold in any one three (3)
month period without registration pursuant to the terms of Rule 144 of the
Securities Act and (ii) the market for the Company's Common Stock is
sufficiently liquid to permit sale of such all of such within a three month
period without adversely affecting the market price.

10.  Miscellaneous.

          (a) Specific Performance. The parties hereto acknowledge that there
              --------------------
may be no adequate remedy at law if any party fails to perform any of its
obligations hereunder and that each party may be irreparably harmed by any such
failure, and accordingly agree that each party, in addition to any other remedy
to which it may be entitled at law or in equity, shall be entitled to compel
specific performance of the obligations of any other party under this Agreement
in accordance with the terms and conditions of this Agreement. Legal fees and
costs of enforcing this Agreement shall be awarded to the prevailing party.

          (b) Notices. All demands, requests, notices and other communications
              -------
required or permitted to be given under this Agreement shall be in writing and
shall be deemed to have been duly given if delivered personally or sent by
United States first class mail, postage prepaid, and

                                       12
<PAGE>

to the parties hereto at the following address or at such other address as any
party hereto shall hereafter specify by notice to the other party hereto:

                  (i)  If to the Company, addressed to:

                       Blue Rhino Corporation
                       104 Cambridge Plaza Drive
                       Winston-Salem, N.C. 27104
                       Attn:  Mark Castaneda

                       with a copy to:

                       John H. Muehlstein
                       Pedersen & Houpt
                       161 North Clark Street
                       Suite 3100
                       Chicago, IL 60601

                  (ii) If to the Holders, to their addresses set forth on
                       Schedule 1 attached hereto,
                       ----------

                       with a copy to :

                       Richard A. Sugar
                       Sugar, Friedberg & Felsenthal
                       30 North LaSalle Street
                       Suite 2600
                       Chicago, IL 60602

          Except as otherwise provided herein, all such demands, requests,
notices and other communications shall be deemed to have been received on the
date of personal delivery thereof or on the third business day after the mailing
thereof.

          (c) Governing Law. This Agreement shall be construed in accordance
              -------------
with and governed by the laws of the State of Illinois (without giving effect to
any conflicts or choice of laws provisions that would cause the applications of
the domestic substantive laws of any other jurisdiction).

          (d) Headings. The descriptive headings of the several sections and
              --------
paragraphs of this Agreement are inserted for convenience only, and do not
constitute a part of this Agreement and shall not affect in any way the meaning
or interpretation of this Agreement.

          (e) Entire Agreement: Amendments. This Agreement and the other
              ----------------------------
writings referred to herein or delivered pursuant hereto which form a part
hereof contain the entire understanding of the parties with respect to its
subject matter. This Agreement supersedes all prior agreements

                                       13
<PAGE>

and understandings between the parties with respect to its subject matter. This
Agreement may be amended and the observance of any term of this Agreement may be
waived (either generally or in a particular instance and either retroactively or
prospectively) only by a written instrument duly executed by the Company and the
Majority Holders. Each Holder of any Registrable Securities at the time or
thereafter outstanding shall be bound by an amendment or waiver authorized by
this Section 10(e), whether or not any such Registrable Securities shall have
been marked to indicate such consent.

          (f) Assignability.  This Agreement and all of the provisions hereof
              -------------
may not be assigned by any Holder without the prior written consent of the
Company.

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

          IN WITNESS WHEREOF the parties have executed this Agreement as of the
date first written above.

COMPANY:                               HOLDERS:

                                       __________________________________
BLUE  RHINO CORPORATION                Malcolm R. McQuilkin

By:_________________________________   __________________________________
                                       James Harris
Name:_______________________________

HOLDERS:                               __________________________________
                                       Darren Howanietz
____________________________________
Martin Bossler                         __________________________________
                                       Brandon McQuilkin
____________________________________
Paul Friduss                           __________________________________
                                       Michael Fasel

                                       14<PAGE>

                                                                    Exhibit 10.1

                           ASSET PURCHASE AGREEMENT

                                 BY AND AMONG

                                UNIFLAME, INC.,

                                MAC MCQUILKIN,

                                JAMES E. HARRIS

                                      AND

                            BLUE RHINO CORPORATION

                                March 31, 2000
<PAGE>

                           ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (the "Agreement") is made as of this 31st day
of March, 2000, by and among BLUE RHINO CORPORATION, a Delaware corporation
("Buyer"), and UNIFLAME, INC. an Illinois corporation ("Seller"), MAC R.
MCQUILKIN, an Illinois resident ("McQuilkin"), and JAMES E. HARRIS, an Illinois
resident ("Harris") (collectively, McQuilkin and Harris are hereinafter referred
to as the "Shareholders").

                               R E C I T A L S:
                               - - - - - - - -

     A.   Seller manufactures and sells garden art, fireplace accessories and
barbeque grills, firepits and smokers in the United States and throughout the
word (the "Business").

     B.   The Shareholders, through the James E. Harris Self Declaration of
Trust dated January 28, 1998 and the Malcolm McQuilkin Living Trust Agreement
dated November 1, 1999 (the "Trusts"),  own 100% of the equity interest of
Seller.

     C.   The Shareholders have complete authority and control over the Trusts.

     D.   Buyer desires to purchase, and Seller desires to sell, certain of the
assets of the Seller used or useful in the operations of the Business as
currently conducted on the terms and conditions hereinafter set forth.

                               A G R E E M E N T

     NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

                                   ARTICLE 1
                              PURCHASE OF ASSETS

     1.1  Sale of Assets.  On the Closing Date, Seller shall, assign, transfer,
          --------------
convey and deliver to Buyer, and Buyer agrees to purchase and accept from
Seller, all of the assets and properties of Seller of every kind, nature and
description, real and personal, tangible and intangible, wherever situated,
which are owned, leased, held, used or related to the operation of the Business
as currently conducted (the "Assets"), except for the Excluded Assets (as
hereinafter defined) described in Section 1.2. Without limiting the generality
of the foregoing, the Assets shall include:

          (a)  Tangible Assets.  All the tangible personal property, physical
               ---------------
assets and equipment, furnishings, and decorative objects held by Seller that
are used in the operation of the Business as currently conducted, as described
on  Schedule 1.1(a) hereto, and any replacements
<PAGE>

thereof or additions thereto made between the date hereof and the Closing Date,
less any retirements thereof made in the ordinary and usual course of business
that are replaced by property or assets of at least equivalent utility and value
(hereinafter referred to as the "Tangible Assets").

          (b)  Licenses and Intangible Assets.
               ------------------------------

               (1)  All intangible assets owned or held or used by Seller and
used in the operation of the Business as currently conducted, such as any
franchises, trademarks or service marks, licenses, trade names, logos,
promotions, slogans, original copy, copyrights, patents, and applications for,
registrations of and licenses in respect of any of the foregoing, all trade
secrets, customer lists and proprietary rights; and the like (the "Intangible
Property"), including but not limited to those of which are set forth in
Schedule 1.1(b) hereto; and

               (2)  All goodwill of the Business, if any.

          (c)  Inventory. All inventories of products, work-in-process, finished
               ---------
goods, raw materials, supplies and parts held in connection with the Business
(the "Inventory"), a complete list of which is set forth in Schedule 1.1(c)
hereto.

          (d)  Accounts Receivable. All accounts and notes receivable and all of
               -------------------
seller's right, title and interest in customer accounts (the "Accounts
Receivable") a complete list of which is set forth in Schedule 1.1(d) hereto.

          (e)  Real Property.  All of the Seller's fee or leasehold interest, as
               -------------
applicable, to the real property, buildings and structures set forth in Schedule
1.1(e) hereto, together with all appurtenances, rights, privileges and easements
benefitting, belonging or pertaining to such property (the "Real Property"), and
any and all improvements made thereto and any and all improvements made between
the date of this Agreement and the Closing Date (the "Improvements"), and
Seller's interests in and to all fixtures related to the Real Property and
Improvements.

          (f)  Contracts.  All leases, contracts, agreements, arrangements,
               ---------
commitments and understandings to which Seller is a party to and set forth on
Schedule 1.1(f) hereto, and all leases, contracts, agreements, arrangements,
commitments and understandings entered into between the date hereof and the
Closing Date in the usual and ordinary course of business (the "Contracts").

          (g)  Records.  All files, records and logs pertaining to the operation
               -------
of the Business, including, without limitation, all computer software used in
the operations of and the accounting for the Business.

          (h)  Cash and Cash Equivalents.  Cash, amounts on deposit, and other
               -------------------------
cash equivalents of Seller existing at the Closing Date;

                                      -2-
<PAGE>

     1.2  Excluded Assets.  The following assets (the "Excluded Assets") shall
          ---------------
be specifically excluded from the Assets:

          (a)  Tax Claims.  Any and all claims of Seller for tax refunds, tax
               ----------
loss carry-forward benefits, other similar claims or rights of Seller existing
at the Closing Date; and

          (b)  Corporate Items.  The corporate books, records and tax returns of
               ---------------
Seller.

          (c)  Other.  Any benefit, right or claim relating to any liability or
               -----
contract not assumed by Buyer.

     1.3  Assumed Liabilities.  Subject to the conditions and exceptions
          -------------------
contained herein, on the Closing Date, Buyer will assume and agree to pay,
defend, discharge and perform when due only the following liabilities and
obligations of Seller relating to the Business (the "Assumed Liabilities"):

          (a)  Contracts. The liabilities and obligations of Seller accruing and
               ---------
to be performed after the Closing Date under the Contracts relating to the
operation of the Business after the Closing Date.

          (b)  Accounts Payable.  The amounts due to certain suppliers and
               ----------------
vendors of Seller (the "Accounts Payable") a complete list of which is set forth
in Schedule 1.3(b) hereto.

          (c)  Other.  The liabilities, commitments and delegations specifically
               -----
set forth on Schedule 1.3(c).

     Other than the Assumed Liabilities, Buyer shall not assume and shall not be
obligated in any manner to pay any debts, liabilities or obligations (the
"Excluded Liabilities") of Seller of any kind or nature, whether express or
implied, known or unknown, contingent or absolute.

     1.4  Liabilities to be Paid at or Before Closing.  The debts, liabilities,
          -------------------------------------------
and obligations to be paid by Seller out of its sale proceeds are described on
Schedule 1.4. The payoff amounts for these debts, liabilities, and obligations
for which Seller is responsible are the balances as they exist on the Closing
Date.  Except for the Assumed Liabilities, Seller hereby agrees to retain and
discharge, and to indemnify and hold Buyer harmless against, any and all debts,
liabilities, and obligations of Seller arising with respect to the period prior
to the Closing Date.

     1.5  Purchase Price, Payment.
          -----------------------

          (a)  Purchase Price.  The total purchase price (the "Purchase Price")
               --------------
to be paid by Buyer to Seller for the Assets shall be Thirteen Million Five
Hundred Fifty Thousand One Hundred Thirty One Dollars ($13,550,131.00).

                                      -3-
<PAGE>

          (b)  Payment of Purchase Price.  The Purchase Price shall be paid by
               -------------------------
Buyer to Seller in the following manner:

               (1)  Cash.  At the Closing, Buyer will pay to Seller by wire
                    ----
transfer Four Million Six Hundred Seven Thousand Thirty One and 63/100 Dollars
($4,607,031.63), plus any cash required in lieu of fractional shares pursuant to
Section 1.5(b)(2).

               (2)  Stock.  Within 90 days following the Closing Date, Buyer
                    -----
shall deliver to Seller shares of Buyer's common stock, $.001 par value with a
market value of Six Million Six Hundred Ninety Three Thousand Ninety Nine and
37/100 Dollars ($6,693,099.37) (the "Purchase Shares") titled in the names of
the Shareholders and employees identified in Section 3.1(e) herein and allocated
among them in the proportions provided in Schedule 1.5(b)(2). The value of the
shares shall be determined by the average of the last trade prices for a share
of Buyer's common stock, as listed in The Wall Street Journal, Central Edition,
reported for the ten (10) trading days ending on the Closing Date. No fractional
shares will be issued. With respect to any fractional share, Buyer shall pay to
Seller an amount in cash equal to such fraction.

               (3)  Deferred Purchase Price. Cash in the amount of the Deferred
                    -----------------------
Purchase Price (as hereinafter defined) payable to Seller pursuant to Section
1.5(c).

          (c)  Deferred Purchase Price. The "Deferred Purchase Price" shall mean
               -----------------------
payments made by Buyer to Seller in an amount up to Two Million Two Hundred
Fifty Thousand Dollars ($2,250,000.00) payable over three (3) years (the "DPP
Term") on a quarterly basis, subject to adjustments as set forth in this Section
1.5(c), Section 1.5(d) and Section 1.5(e). The Deferred Purchase Price is based
on a target EBITDA for the Business of One Million Eight Hundred Twelve Thousand
Dollars ($1,812,000.00) in the first year following the Closing Date, such
amount to be increased five percent (5%) per year during the DPP Term and the
year immediately thereafter (the "Target EBITDA"). EBITDA shall mean the net
income of the Business, as determined using generally accepted accounting
principals consistently applied, before deductions for interest, taxes,
depreciation and amortization. At the end of each the first three (3) quarters
(i.e. the last day of June, September and December) of each year during the DPP
Term, Buyer shall pay Seller One Hundred Eighty Seven Thousand Five Hundred
Dollars ($187,500.00). At the end of the fourth quarter of each year during the
DPP Term, Buyer shall pay Seller One Hundred Eighty Seven Thousand Five Hundred
Dollars ($187,500.00); provided, however, if the actual EBITDA for such year is
less than the Target EBITDA for such year (a "EBITDA Shortfall") an amount equal
to the difference between (i) a fraction, the numerator of which shall be the
difference between the Target EBITDA for such year and the actual EBITDA for
such year and the denominator of which shall be the Target EBITDA for such year,
which fraction shall be multiplied by $750,000, and (ii) $187,500. The fourth
quarter payments payable hereunder shall be made within 90 days after the end of
such fourth quarter. If earned, the EBITDA Shortfall for any year in the DPP
Term shall be recaptured and paid to Seller with respect to the fourth quarter
payment of subsequent years during the DPP Term only if the Target EBITDA for
such subsequent year is met and then the recaptured amount shall be an amount

                                      -4-
<PAGE>

equal to a fraction, the numerator of which shall be the difference between the
actual EBITDA for the current year and the Target EBITDA for such year and the
denominator of which shall be the Target EBITDA for such year, which fraction
shall be multiplied by $750,000 (the "Subsequent Adjustment"); provided,
however, that the aggregate amount of all Subsequent Adjustments payable to
Seller shall not exceed the aggregate of any prior EBITDA Shortfalls. The EBITDA
Shortfall, if any, that exists at the end of the DPP Term shall be recaptured
and paid to Seller if the actual EBITDA for the year immediately following the
DPP Term exceeds the Target EBITDA for such year by using the same formula set
forth in the previous sentence. During the DPP Term, Seller or its
representatives shall have the right to inspect the financial statements and
other information used by Buyer in calculating the actual EBITDA. Such
inspections shall take place with reasonable notice and in a manner that does
not interrupt the Business.

          (d)  Adjustments to Deferred Purchase Price - Accounts Receivables. If
               -------------------------------------------------------------
within six (6) months after the Closing Date, all of the Accounts Receivable
have not been fully collected by Buyer, Buyer shall be entitled to deduct from
the Deferred Purchase Price the difference between the value of the Accounts
Receivable and the amount actually collected by Buyer (the "Accounts Receivable
Adjustment"). The Accounts Receivable Adjustment shall be deducted from the
quarterly payments due Seller pursuant to the Deferred Purchase Price until the
Accounts Receivable Adjustment has been fully satisfied. After the Accounts
Receivable Adjustment has been fully satisfied, Buyer shall forward any
subsequent payment received on any Accounts Receivable to Seller. During the six
(6) month period immediately following Closing Date, Buyer shall (i) use its
normal collection efforts in collecting the Accounts Receivable and (ii) shall
apply monies received from account debtors to such account debtors' oldest
account, except in the case of a "disputed" Account Receivable and except for
instances where the account debtor has directed the payment to a specific
invoice or specific invoices. For purposes of this Section, a "disputed" Account
Receivable means one which the account debtor refuses to pay because he asserts
that the money is not owed or the amount is incorrect. During said six (6) month
period, Buyer shall supply Seller with a monthly report, to be provided to
Seller within fifteen (15) days after the end of each calendar month, showing
the status of the Accounts Receivable and shall afford Seller or its
representatives the right to inspect Buyer's records related to the Accounts
Receivable, provided such inspections take place with reasonable notice and in a
manner that does not interrupt the Business.

          (e)  Adjustments to Deferred Purchase Price - Accounts Payable.  At
               ---------------------------------------------------------
Closing, Seller shall deliver to Buyer a list of the accounts payable as of the
date of Closing (the "Accounts Payable List").  If within six (6) months after
Closing Date Buyer has paid any amounts for obligations of Seller that are not
contained on the Accounts Payable List, Buyer shall be entitled to deduct from
the Deferred Purchase Price any such amounts. If within six (6) months after
Closing Date Buyer has paid amounts less than the obligations of Seller set
forth on the Accounts Payable List, Buyer shall pay such amount to Seller
through an increase in the next Deferred Purchase Price payment.

                                      -5-
<PAGE>

     1.6  Registration of Purchase Shares.  Buyer will use its best efforts to
          -------------------------------
prepare, file and have become effective with the Securities and Exchange
Commission (the "Commission") an amendment or supplement to Buyer's Form S-1
registration statement last amended on July 21, 1999 (the "Shelf Registration
Statement") relating to the sale of all of the Purchase Shares to be issued to
Seller pursuant to this Agreement on or before the one (1) month anniversary
date of the Closing Date. Buyer shall cause the Purchase Shares to be listed on
the Nasdaq National Market at its expense so as to permit the sale by Seller of
the Purchase Shares without further action under any state securities or blue
sky laws. Buyer's obligation hereunder to so prepare and file the Shelf
Registration Statement relating to the Purchase Shares is subject to the full
cooperation of Seller in furnishing any and all information about themselves and
any contemplated method of resale of such shares as may be necessary to make
such statements not misleading, and any such information so furnished shall be
treated as representations and warranties made by Seller under this Agreement,
covered by the indemnification provisions set forth in Section 4(a) hereof.
Buyer shall not be obligated to pay any underwriting discounts, selling
commissions, brokers' fees or other offering expenses of any kind attributable
to any sale of the Purchase Shares, which fees and expenses will be paid by
Seller. Except for transfers permitted to Seller's Shareholders and to the
employees identified in Section 3.1(e), Seller's rights under this Section 1.6
are not transferable without Buyer's prior written consent. Buyer agrees to
maintain the effectiveness of the Shelf Registration Statement effective for a
period of two (2) years after the Closing Date. In the event Buyer is unable to
deliver the Purchase Shares pursuant to the Shelf Registration Statement within
six (6) months of the Closing Date, or if Buyer does not maintain the
effectiveness of the Shelf Registration Statement for two (2) years after the
Closing Date, Seller shall have demand registration rights pursuant to the
registration rights agreement attached hereto as Exhibit L (the "Registration
                                                 ---------
Rights Agreement").

     1.7  Closing.  The closing of the transactions contemplated hereby (the
          -------
"Closing") shall take place at the offices of Pedersen & Houpt, 161 N. Clark,
Suite 3100, Chicago, Illinois 60601on the date hereof (the "Closing Date").

                                   ARTICLE 2
                        REPRESENTATIONS AND WARRANTIES

     2.1  Representations and Warranties of Seller.  Seller and the
          ----------------------------------------
Shareholders, jointly and severally represent and warrant to Buyer as follows:

          (a)  Organization and Standing.  Seller is a corporation duly
               -------------------------
organized, validly existing, and in good standing under the laws of the State of
Illinois, has the corporate power to own, lease and operate the properties it
now owns, leases and operates, and to carry on its business as now being
conducted, and is duly qualified or licensed to do business and is in good
standing in every domestic and foreign jurisdiction in the United States and
elsewhere in which the nature of its business or its ownership or leasing of
property requires such qualification.

          (b)  Authorization.  Seller has all necessary power and authority to
               -------------
execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution,

                                      -6-
<PAGE>

delivery and performance of this Agreement have been duly approved by all
necessary actions, and this Agreement constitutes the valid and binding
obligation of Seller, enforceable against Seller in accordance with its terms.

          (c)  Legal Proceedings.  Except as set forth on Schedule 2.1(c), there
               -----------------
are no claims, suits, actions, administrative, bankruptcy, arbitration or other
proceedings or governmental investigations pending or, to Seller's knowledge,
threatened against Seller or the Assets, and Seller does not know of any facts
which could reasonably form the basis for any such claim, suit, action,
proceeding, or investigation. Except as set forth on Schedule 2.1(c), there are
presently no outstanding judgments, decrees, or orders of any court or any
governmental or administrative agency against or affecting Seller or any of the
Assets. No insolvency proceedings of any character including, without
limitation, bankruptcy, receivership, reorganization, or arrangement with
creditors, voluntary or involuntary, affecting Seller or any of the Assets are
pending, or to Seller's knowledge, threatened. Seller has not made or taken any
assignment for the benefit of creditors or any actions with a view to, or which
would constitute the basis for, the institution of any such insolvency
proceedings.

          (d)  Noncontravention. Neither the execution and the delivery of this
               ----------------
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which Seller is subject or any provision of the
charter or bylaws of Seller, or (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify, or cancel, or require any notice
under any agreement, contract, lease, license, instrument, or other arrangement
to which Seller is a party or by which it is bound or to which any of its assets
is subject (or result in the imposition of any security interest upon any of its
assets). The execution and delivery of this Agreement by Seller and the
performance of its obligations hereunder do not require any consent or approval
of, action by, or notice to any governmental department, commission, board,
bureau, agency or instrumentality, or any other third party.

          (e)  Intellectual Property.
               ---------------------

               (1)  Except with respect to the Weber Litigation described on
Schedule 2.1(c), Seller owns or has the right to use pursuant to license,
sublicense, agreement, or permission all Intangible Property necessary for the
operation of the Businesses as presently conducted and as presently proposed to
be conducted. Each item of Intangible Property owned or used by the Seller
immediately prior to the Closing hereunder will be owned or available for use by
the Buyer on identical terms and conditions immediately subsequent to the
Closing hereunder. Seller has taken all necessary action to maintain and protect
each item of Intangible Property that it owns or uses.

               (2)  Except with respect to the Weber Litigation described on
Schedule 2.1(c), Seller has not interfered with, infringed upon,
misappropriated, or otherwise come into

                                      -7-
<PAGE>

conflict with any Intangible Property rights of third parties, and none of the
Shareholders and the directors and officers (and employees with responsibility
for Intangible Property matters) of Seller has ever received any charge,
complaint, claim, demand, or notice alleging any such interference,
infringement, misappropriation, or violation (including any claim that must
license or refrain from using any Intangible Property rights of any third
party). To the knowledge of the Stockholders and the directors and officers (and
employees with responsibility for Intellectual Property matters) of Seller, no
third party has interfered with, infringed upon, misappropriated, or otherwise
come into conflict with any Intangible Property rights of Seller.

               (3)  Schedule 1.1(b) identifies each patent or registration which
has been issued to Seller with respect to any of its Intangible Property,
identifies each pending patent application or application for registration which
Seller has made with respect to any of its Intangible Property, and identifies
each license, agreement, or other permission which Seller has granted to any
third party with respect to any of its Intangible Property (together with any
exceptions). Seller has delivered to the Buyer correct and complete copies of
all such patents, registrations, applications, licenses, agreements, and
permissions (as amended to date) and has made available to Buyer correct and
complete copies of all other written documentation evidencing ownership and
prosecution (if applicable) of each such item. Schedule 1.1(b) identifies each
trade name or unregistered trademark used by Seller in connection with its
Business. With respect to each item of Intangible Property required to be
identified in Disclosure Schedule 1.1(b).

                    (A)  Seller possess all right, title, and interest in and to
the item, free and clear of any security interest, license, or other
restriction;

                    (B)  The item is not subject to any outstanding injunction,
judgment, order, decree, ruling, or charge;

                    (C)  No action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand is pending or is threatened which challenges
the legality, validity, enforceability, use, or ownership of the item; and

                    (D)  Seller has never agreed to indemnify any person or
entity for or against any interference, infringement, misappropriation, or other
conflict with respect to the item; and

               (4)  Schedule 1.1(b) identifies each item of Intellectual
Property that any third party owns and that Seller uses pursuant to license,
sublicense, agreement or permission. Seller has delivered to Buyer correct and
complete copies of all such licenses, sublicenses, agreements and permissions.
With respect to each item of Property required to be identified in Schedule
1.1(b):

                                      -8-
<PAGE>

                    (A)  The license, sublicense, agreement, or permission
covering the item is legal, valid, binding, enforceable and in full force and
effect;

                    (B)  The license, sublicense, agreement or permission will
continue to be legal, valid, binding, enforceable and in full force and effect
on identical terms following the consummation of the transactions contemplated
hereby;

                    (C)  No party to the license, sublicense, agreement or
permission is in breach or default, and no event has occurred which with notice
or lapse of time would constitute a breach or default or permit termination,
modification or acceleration thereunder;

                    (D)  No party to the license, sublicense, agreement or
permission has repudiated any provision thereof;

                    (E)  With respect to each sublicense, the representations
and warranties set forth in subsections (A) through (D) above are true and
correct with respect to the underlying license;

                    (F)  The underlying item of Intangible Property is not
subject to any outstanding injunction, judgment, order, decree, ruling or
charge;

                    (G)  No action, suit, proceeding, hearing, investigation,
charge, complaint, claim or demand is pending or is threatened which challenges
the legality, validity or enforceability of the underlying item of Intangible
Property; and

                    (H)  Seller has not granted any sublicense or similar right
with respect to the license, sublicense, agreement or permission.

               (5)  Seller will not interfere with, infringe upon,
misappropriate or otherwise come into conflict with, any Intangible Property
rights of third parties as a result of the continued operation of the Business
as presently conducted and as presently proposed to be conducted.

          (f)  Compliance with Laws.  Seller has complied with all applicable
               --------------------
laws of federal, state, local and foreign governments (and all agencies
thereof). No notice, action, suit, proceeding, hearing, investigation, charge,
complaint, claim, demand, or notice has been filed or commenced against Seller
alleging any failure so to comply.

          (g)  Assets.  The Assets constitute all of the assets of Seller that
               ------
are necessary to operate the Business as currently operated. Except as set forth
on Schedule 2.1(g), Seller is the sole owner of the Assets and has marketable
and valid title to the Assets, free and clear of all liens, charges, security
interests, claims, or encumbrances whatsoever, except for and subject only to
liens, charges, security interests and encumbrances to be discharged at Closing.

                                      -9-
<PAGE>

          (h)  Financial Statements.  Seller has heretofore delivered to Buyer
               --------------------
(collectively, together with the notes thereto, the "Financial Statements") the
balance sheet of Seller (collectively the "Balance Sheet") as of December 31,
1999 (the "Balance Sheet Date"), December 31, 1998 and December 31, 1997, and
the statements of income of Seller for the years ended December 31, 1999,
December 31, 1998 and December 31, 1997, as well as the balance sheet and
statement of income for the months ended January 31, 2000 and February 29, 2000
and the balance sheet as of March 31, 2000. The "Most Recent Balance Sheet"
refers to the Balance Sheet dated December 31, 1999.

     Each of the Financial Statements is true, complete and correct in all
material respects, was prepared from the books and records kept by Seller, and
fairly presents the financial position of Seller as of such dates, and the
results of Seller's operations and Seller's cash flows for the periods then
ended in accordance with GAAP consistently applied (except in the case of
Financial Statements which are not audited for normally recurring year-end
adjustments, which adjustments will not differ materially from the effects of
normally recurring year-end adjustments on the audited financial statements for
the 1999 fiscal year). Except as set forth in the Schedules delivered pursuant
to this Agreement or the Financial Statements, since the Balance Sheet Date,
there has been no material adverse change in the condition (financial or
otherwise), results of operations, properties, assets, liabilities, business or
prospects of Seller, nor has there been any event or condition of any character
which is likely to materially and adversely affect, the condition (financial or
otherwise), results of operations, properties, assets, liabilities, business or
prospects of Seller. The Balance Sheet reflects all properties and assets, real,
personal or mixed, which are currently used in connection with such Seller's
business, except for properties and assets (other than capital assets) not in
excess of $10,000 (in the aggregate) purchased or sold since the Balance Sheet
Date consistent with past practice and in the ordinary and normal course of
business.

          (i)  Absence of Changes. Except as disclosed in Schedule 2.1(i), since
               ------------------
the Balance Sheet Date, Seller has conducted the Business only in the ordinary
course. Without limiting the generality of the foregoing sentence, except as
disclosed on Schedule 2.1(i), since the Balance Sheet Date there has not been:

               (1)  any change in the financial condition, assets, liabilities,
net worth, or business of Seller, except changes in the ordinary course of
business, none of which, individually or in the aggregate, has been or will be
materially adverse to Seller;

               (2)  any damage, destruction, or loss, whether or not covered by
insurance, materially adversely affecting the properties, business or prospects
of Seller, or any material deterioration in the operating condition of any of
the Assets;

               (3)  any mortgage, pledge, or subjection to lien, charge or
encumbrance of any kind on any of the Assets, tangible or intangible;

                                      -10-
<PAGE>

               (4)  any strike, walkout, labor trouble or any other new or
continued event, development, or condition or any character which has or could
materially adversely affect the business, properties, or prospects of Seller;

               (5)  any increase in the salaries or other compensation payable
or to become payable to, any employee of Seller (except normal annual merit
increases made in the ordinary course of business and consistent with past
practice), or any increase in, or any addition to, other benefits (including
without limitation, any bonus, profit sharing pension, or other plan) to which
Seller's employees may be entitled, or any other payment of any kind to (or on
behalf of) any such employee other than payment of base compensation and
reimbursement for reasonable business expenses in the ordinary course of
business;

               (6)  any cancellation or waiver of any right material to the
operation of Seller's business or any cancellation or waiver of any debt or
claim of substantial value or any cancellation or waiver of any debt or claim
against any Related Party (as defined below);

               (7)  any sale, transfer, or other disposition of any asset of
Seller, except sales of assets in the ordinary course of business;

               (8)  any write-off as uncollectible of any note or account
receivable of Seller or write-down of the value of any asset or inventory by
Seller other than in immaterial amounts or in the ordinary course of business
consistent with past practice and at a rate no greater than during the twelve
(12) months ending on December 31, 1999;

               (9)  any material change in the management or operations of
Seller or any method of accounting or keeping of Seller's books of account or
accounting practices;

               (10) any creation, incurrence, assumption, or guarantee by Seller
of any obligation or liability (whether absolute, accrued, contingent, or
otherwise and whether due or to become due), except in the ordinary course of
business, or any creation, incurrence, assumption or guarantee by Seller or any
indebtedness for money borrowed;

               (11) any sale, transfer, or lease of any property or asset
(whether real, personal, or mixed, tangible or intangible) to any Related Party;
or

               (12) any disposition of or failure to keep in effect any rights
in, to or for the use of any patent, trademark, service mark, trade name, or
copyright, or any disclosure to any person not an employee, or other disposal of
any trade secret, process or know-how.

As used herein, the term "Related Party" means, with respect to any person, any
beneficiary, employee, partner, trustee, affiliate, associate, or relative of a
person or of any Related Party with respect to such person.

                                      -11-
<PAGE>

          (j)  Condition of Equipment.  Except as set forth in Schedule 2.1(j),
               ----------------------
the Tangible Assets are in good operating condition and repair, reasonable wear
and tear in ordinary usage excepted, free of defects, and are suitable, adequate
and fit for the uses for which they are being used.

          (k)  Contracts.  The Contracts are all of the material contracts,
               ---------
agreements, leases and commitments (both written and oral) relating to the
Assets or to the Business. Seller has delivered to Buyer prior to the execution
of this Agreement true and complete copies or descriptions of all of the
Contracts (and all amendments and modifications thereto). Each Contract is in
full force and effect, and constitutes a valid and binding obligation of, and is
legally enforceable in accordance with its terms against, the parties thereto.
To Sellers' knowledge, the parties thereto have complied with all of the
provisions of the Contracts and are not in default thereunder, and there has not
occurred any event which (whether with or without notice, lapse of time, or the
happening or occurrence of any other event) would constitute such a default.
Except as set forth on Schedule 2.1(k), no Contracts require the consent of any
party thereto to the consummation of the transactions contemplated hereby. On
the Closing Date, the provisions of this Section 2.1(k) shall be applicable to
all of the Contracts entered into between the date of this Agreement and the
Closing Date.

          (l)  Inventory.  The Inventory was purchased in the ordinary course of
               ---------
business and in a manner consistent with the regular inventory practices of
Seller. The Inventory is merchantable and fit for the purpose for which it was
procured or manufactured, and none of which is slow moving, obsolete, damaged or
defective, subject only to reserve for inventory write down set forth on the
face of the Most Recent Balance Sheet (rather than in any notes thereto) as
adjusted for the passage of time through the Closing Date in accordance with the
past custom and practice of Seller.

          (m)  Accounts Receivable.  All Accounts Receivable are reflected
               -------------------
properly on Seller's books and records, are valid receivables subject to no
setoffs or counterclaims, are current and collectible, and will be collected in
accordance with the terms of their recorded amounts, subject only to the reserve
for bad debts set forth on the face of the Most Recent Balance Sheet (rather
than in any notes thereto) as adjusted for the passage of time through the
Closing Date in accordance with the past custom and practice of Seller.

          (n)  Accounts Payable. All Accounts Payable were incurred by Seller in
               ----------------
the ordinary course of business. No accounts payable are subject to any contest
or dispute of any kind, whether in whole or part, and Seller has not received
any complaints, threats or collection efforts on the part of any suppliers or
trade vendors with respect thereto.

          (o)  Product Warranty.  Each product manufactured, sold, leased, or
               ----------------
delivered by Seller has been in conformity with all applicable contractual
commitments and all express and implied warranties, and Seller does not have any
liability (and there is no basis for any present or future action, suit,
proceeding, hearing, investigation, charge, complaint, claim, or demand against
any of them giving rise to any liability) for replacement or repair thereof or
other

                                      -12-
<PAGE>

damages in connection therewith, subject only to the reserve for product
warranty claims set forth on the face of the Most Recent Balance Sheet (rather
than in any notes thereto) as adjusted for the passage of time through the
Closing Date in accordance with the past custom and practice of Seller. No
product manufactured, sold, leased, or delivered by Seller is subject to any
guaranty, warranty, or other indemnity beyond the applicable standard terms and
conditions of sale or lease. Schedule 2.1(o) includes copies of the standard
terms and conditions of sale or lease for the Sellers (containing applicable
guaranty, warranty, and indemnity provisions).

          (p)  Product Liability.  Except as set forth on Schedule 2.1(p), to
               -----------------
Seller's knowledge, Seller has no liability (and there is no basis for any
present or future action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand against Seller giving rise to any liability) arising
out of any injury to individuals or property as a result of the ownership,
possession, or use of products manufactured, sold or distributed by Seller.

          (q)  Compensation Arrangements.  Schedule 2.1(q) hereto sets forth the
               -------------------------
names, ages, and current salary, including any bonus, if applicable, of all
present employees of Seller together with a statement of the full amount of all
remuneration including fringe benefits (other than benefits paid under the Plans
as defined in Section 2.1(r) hereof) paid by Seller to each such person during
the twelve (12) month period preceding the date hereof. Schedule 2.1(q) also
contains a brief description of all material terms of employment agreements to
which Seller is a party and all severance and accrued benefits to which any
director, officer, or employee of Seller is or may be entitled to receive.
Seller acknowledges that Buyer is not assuming any of the compensation
arrangements set forth on Schedule 2.1(q).

          (r)  Labor Relations.  There are no strikes, work stoppages, grievance
               ---------------
proceedings, union organization efforts, or other controversies pending or
threatened between Seller and any of its employees, supervisors, managers, or
agents. Seller has complied and is in compliance, in all material respects, with
all laws and regulations relating to the employment of labor, including without
limitation provisions relating to wages, hours, collective bargaining,
occupational safety and health, equal employment opportunity, and the
withholding of income taxes and social security contributions. There are no
collective bargaining agreements or employment agreements between Seller and any
of its employees. The consummation of the transactions contemplated hereby will
not cause Buyer to incur or suffer any liability relating to, or obligation to
pay, severance, termination, or other payments to any person or entity.

          (s)  Employee Benefit Plans.
               ----------------------

               (1)  Definitions.  For purposes of this Section 2.1(s), the
                    -----------
following terms shall have the definition ascribed herein:

     "COBRA" means the requirements of Part 6 of Subtitle B of Title I of ERISA
     -------
and Code (S)4980B.

                                      -13-
<PAGE>

     "Code" means the Internal Revenue Code of 1986, as amended.
     ------

     "Controlled Group" means one or more incorporated or unincorporated
     ------------------
businesses under common control pursuant to Code Sections 414(b), (c), (m) or
(o).

     "Employee Benefit Plan" means any (a) nonqualified deferred compensation or
     -----------------------
retirement plan or arrangement, (b) qualified defined contribution retirement
plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified
defined benefit retirement plan or arrangement which is an Employee Pension
Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare Benefit
Plan or material fringe benefit or other retirement, bonus, or incentive plan or
program.

     "Employee Pension Benefit Plan" has the meaning set forth in ERISA (S)3(2).
     -------------------------------

     "Employee Welfare Benefit Plan" has the meaning set forth in ERISA (S)3(1).
     -------------------------------

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
     -------
amended.

     "ERISA Affiliate" means each entity which is treated as a single employer
     -----------------
with Seller for purposes of Code (S)414.

     "Fiduciary" has the meaning set forth in ERISA (S)3(21).
     -----------

     "Liability" means any liability (whether known or unknown, asserted or
     -----------
unasserted, absolute or contingent, accrued or unaccrued, liquidated or
unliquidated, and due or to become due), including any liability for taxes.

     "Multiemployer Plan" has the meaning set forth in ERISA (S)3(37).
     --------------------

     "PBGC" means the Pension Benefit Guaranty Corporation.
     ------

     "Prohibited Transaction" has the meaning set forth in ERISA (S)406 and Code
     ------------------------
(S)4975.

     "Reportable Event" has the meaning set forth in ERISA (S)4043.
     ------------------

               (2)  Schedule 2.1(s) lists each Employee Benefit Plan that Seller
maintains or to which Seller contributes or has any obligation to contribute.

                    (A)  Each such Employee Benefit Plan (and each related
trust, insurance contract, or fund) complies in form and in operation in all
respects with the applicable requirements of ERISA, the Code, and other
applicable laws.

                    (B)  All required reports and descriptions (including Form
5500 Annual Reports, summary annual reports, PBGC-1's, and summary plan
descriptions) have been

                                      -14-
<PAGE>

timely filed and distributed appropriately with respect to each such Employee
Benefit Plan. The requirements of COBRA have been met with respect to each such
Employee Benefit Plan which is an Employee Welfare Benefit Plan.

                    (C)  All contributions (including all employer contributions
and employee salary reduction contributions) which are due have been paid to
each such Employee Benefit Plan which is an Employee Pension Benefit Plan and
all contributions for any period ending on or before the Closing Date which are
not yet due have been paid to each such Employee Pension Benefit Plan or accrued
in accordance with the past custom and practice of Seller. All premiums or other
payments for all periods ending on or before the Closing Date have been paid
with respect to each such Employee Benefit Plan which is an Employee Welfare
Benefit Plan.

                    (D)  Each such Employee Benefit Plan which is an Employee
Pension Benefit Plan meets the requirements of a "qualified plan" under Code
(S)401(a), has received, within the last two years, a favorable determination
letter from the Internal Revenue Service that it is a "qualified plan," and
Seller is not aware of any facts or circumstances that could result in the
revocation of such determination letter.

                    (E)  The market value of assets under each such Employee
Benefit Plan which is an Employee Pension Benefit Plan (other than any
Multiemployer Plan) equals or exceeds the present value of all vested and
nonvested Liabilities thereunder determined in accordance with PBGC methods,
factors, and assumptions applicable to an Employee Pension Benefit Plan
terminating on the date for determination.

                    (F)  Seller has delivered to Buyer correct and complete
copies of the plan documents and summary plan descriptions, the most recent
determination letter received from the Internal Revenue Service, the most recent
Form 5500 Annual Report, and all related trust agreements, insurance contracts,
and other funding agreements which implement each such Employee Benefit Plan.

               (3)  With respect to each Employee Benefit Plan that Seller and
any ERISA Affiliate maintains or ever has maintained or to which any of them
contributes, ever has contributed, or ever has been required to contribute:

                    (A)  No such Employee Benefit Plan which is an Employee
Pension Benefit Plan (other than any Multiemployer Plan) has been completely or
partially terminated or been the subject of a Reportable Event as to which
notices would be required to be filed with the PBGC. No proceeding by the PBGC
to terminate any such Employee Pension Benefit Plan (other than any
Multiemployer Plan) has been instituted or, to Seller's knowledge, threatened.

                    (B)  There have been no Prohibited Transactions with respect
to any such Employee Benefit Plan. No Fiduciary has any Liability for breach of
fiduciary duty or

                                      -15-
<PAGE>

any other failure to act or comply in connection with the administration or
investment of the assets of any such Employee Benefit Plan. No action, suit,
proceeding, hearing, or investigation with respect to the administration or the
investment of the assets of any such Employee Benefit Plan (other than routine
claims for benefits) is pending or, to Seller's knowledge, threatened. Seller
has no knowledge of any Basis for any such action, suit, proceeding, hearing, or
investigation.

                    (C)  Seller has not incurred any Liability to the PBGC
(other than PBGC premium payments) or otherwise under Title IV of ERISA
(including any withdrawal liability as defined in ERISA (S)4201) or under the
Code with respect to any such Employee Benefit Plan which is an Employee Pension
Benefit Plan.

               (4)  Seller has not, and the other members of the Controlled
Group have not, ever contributed to, or ever been required to contribute to any
Multiemployer Plan or has any Liability (including withdrawal liability as
defined in ERISA (S)4201) under any Multiemployer Plan.

               (5)  Seller does not maintain or ever has maintained or
contributes, ever has contributed, or ever has been required to contribute to
any Employee Welfare Benefit Plan providing medical, health, or life insurance
or other welfare-type benefits for current or future retired or terminated
employees, their spouses, or their dependents (other than in accordance with
Code (S)4980B).

               (6)  Seller hereby acknowledges that Buyer will not be assuming
any Employee Benefit Plan that is maintained by Seller.

          (t)  Environmental, Health, and Safety Matters.
               ------------------------------------------

               (1)  Definitions.  For purposes of this Section 2.1(t), the
                    -----------
following terms shall have the definition ascribed herein:

     "Environmental, Health, and Safety Requirements" shall mean all federal,
      ----------------------------------------------
state, local and foreign statutes, regulations, ordinances and other provisions
having the force or effect of law, all judicial and administrative orders and
determinations, all contractual obligations and all common law concerning public
health and safety, worker health and safety, and pollution or protection of the
environment, including without limitation all those relating to the presence,
use, production, generation, handling, transportation, treatment, storage,
disposal, distribution, labeling, testing, processing, discharge, release,
threatened release, control, or cleanup of any hazardous materials, substances
or wastes, chemical substances or mixtures, pesticides, pollutants,
contaminants, toxic chemicals, petroleum products or byproducts, asbestos,
polychlorinated biphenyls, noise or radiation, each as amended and as now or
hereafter in effect.

               (2)  Seller has, in all material respects, complied with and is
in compliance with all Environmental, Health, and Safety Requirements.

                                      -16-
<PAGE>

               (3)  Without limiting the generality of the foregoing, the Seller
has obtained and complied with, and is in compliance with, all permits, licenses
and other authorizations that are required pursuant to Environmental, Health,
and Safety Requirements for the occupation of its facilities and the operation
of its business; a list of all such permits, licenses and other authorizations
is set forth on Schedule 2.1(t) attached hereto.

               (4)  Seller has not received any written or oral notice, report
or other information regarding any actual or alleged violation of Environmental,
Health, and Safety Requirements, or any liabilities or potential liabilities
(whether accrued, absolute, contingent, unliquidated or otherwise), including
any investigatory, remedial or corrective obligations, relating to Seller, the
Stations or the Assets arising under Environmental, Health, and Safety
Requirements.

               (5)  Except as set forth on Schedule 2.1 (t), none of the
following exists at any property or facility owned or operated by Seller: (A)
underground storage tanks, (B) asbestos-containing material in any form or
condition, (C) materials or equipment containing polychlorinated biphenyls, or
(D) landfills, surface impoundments, or disposal areas.

               (6)  Seller has not treated, stored, disposed of, arranged for or
permitted the disposal of, transported, handled, or released any substance,
including without limitation any hazardous substance, or owned or operated any
property or facility (and no such property or facility is contaminated by any
such substance) in a manner that has given or would give rise to liabilities,
including any liability for response costs, corrective action costs, personal
injury, property damage, natural resources damages or attorney fees, pursuant to
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended ("CERCLA"), the Solid Waste Disposal Act, as amended ("SWDA")
or any other Environmental, Health, and Safety Requirements.

               (7)  Neither this Agreement nor the consummation of the
transaction that is the subject of this Agreement will result in any obligations
for site investigation or cleanup, or notification to or consent of government
agencies or third parties, pursuant to any of the so-called "transaction-
triggered" or "responsible property transfer" Environmental, Health, and Safety
Requirements.

               (8)  Seller has not, either expressly or by operation of law,
assumed or undertaken any liability, including without limitation any obligation
for corrective or remedial action, of any other person or entity relating to
Environmental, Health, and Safety Requirements.

               (9)  No facts, events or conditions relating to the past or
present facilities, properties or operations of the Seller will prevent, hinder
or limit continued compliance with Environmental, Health, and Safety
Requirements, give rise to any investigatory, remedial or corrective obligations
pursuant to Environmental, Health, and Safety Requirements, or give rise to any
other liabilities (whether accrued, absolute, contingent, unliquidated or
otherwise) pursuant to Environmental, Health, and Safety Requirements, including
without limitation any

                                      -17-
<PAGE>

relating to onsite or offsite releases or threatened releases of hazardous
materials, substances or wastes, personal injury, property damage or natural
resources damage.

          (u)  Tax Matters.  Except as set forth on Schedule 2.1(u), Seller has
               -----------
timely filed with all appropriate governmental agencies all federal, state,
local, and other tax or information returns and tax reports due for all periods
ended on or before the date hereof and has paid in full all federal, state,
foreign, local and other governmental taxes, estimated taxes, interest,
penalties, assessments and deficiencies (collectively, "Taxes") which have
become due. Such returns and forms are true, correct and complete in all
material respects, and Seller has no liability for Taxes in excess of the Taxes
shown on such returns.  Seller is not a party to any pending action or
proceeding, and, to Seller's knowledge, there is no action or proceeding
threatened by any government or authority against Seller for assessment or
collection of any Taxes, and no unresolved claim for assessment or collection of
any Taxes has been asserted against Seller.

          (v)  Insurance.  Schedule 2.1(v) contains a list and brief description
               ---------
of all policies of title, property, fire, casualty, liability, life, workmen's
compensation, business interruption and other forms of insurance of any kind
relating to the Assets or the Business. All such policies: (i) are in full force
and effect; (ii) are sufficient for compliance in all material respects by
Seller with all requirements of law and of all agreements to which Seller is a
party; (iii) are valid, outstanding, and enforceable policies; and (iv) insure
against risks of the kind customarily insured against and in amounts customarily
carried by corporations similarly situated and provide adequate insurance
coverage for the Assets and the Business. There is no default with respect to
any provision contained in any such policy, nor has there been any failure to
give any notice or present any claim under any such policy in a timely fashion
or in the manner or detail required by the policy. No notice of cancellation or
non-renewal with respect to, or disallowance of any claim under, any such policy
has been received by Seller.

          (w)  Real Property.
               -------------

               (1)  Seller does not own any Real Property.

               (2)  Schedule 1.1(e) lists and describes briefly all Real
Property leased or subleased to Seller. Seller has delivered to Buyer correct
and complete copies of the leases and subleases listed in Section 1.1(e). With
respect to each lease and sublease listed in Schedule 1.1(e):

                    (A)  The lease or sublease is legal, valid, binding,
enforceable, and in full force and effect.

                    (B)  The lease or sublease will continue to be legal, valid,
binding, enforceable, and in full force and effect on identical terms following
the consummation of the transactions contemplated hereby.

                                      -18-
<PAGE>

                    (C)  No party to the lease or sublease is in breach or
default, and no event has occurred which, with notice or lapse of time, would
constitute a breach or default or permit termination, modification, or
acceleration thereunder.

                    (D)  No party to the lease or sublease has repudiated any
provision thereof.

                    (E)  There are no disputes, oral agreements, or forbearance
programs in effect as to the lease or sublease.

                    (F)  With respect to each sublease, the representations and
warranties set forth in subsections (A) through (E) above are true and correct
with respect to the underlying lease.

                    (G)  Seller has not assigned, transferred, conveyed,
mortgaged, deeded in trust, or encumbered any interest in the leasehold or
subleasehold.

                    (H)  All facilities leased or subleased thereunder have
received all approvals of governmental authorities (including licenses and
permits) required in connection with the operation thereof and have been
operated and maintained in accordance with applicable laws, rules, and
regulations.

                    (I)  All facilities leased or subleased thereunder are
supplied with utilities and other services necessary for the operation of said
facilities.

                    (J)  The owner of the facility leased or subleased has good
and marketable title to the Real Property, free and clear of any security
interest, easement, covenant, or other restriction, except for installments of
special easements not yet delinquent and recorded easements, covenants, and
other restrictions which do not impair the current use, occupancy, or value, or
the marketability of title, of the property subject thereto.

          (x)  Subsidiaries.  Uni-Asia, Ltd. ("Uni-Asia"), a wholly-owned
               ------------
subsidiary of Seller, is a corporation duly organized, validly existing and in
good standing under the laws of the country of Seychelles. Uni-Asia is duly
authorized to conduct business and is in good standing under the laws of each
jurisdiction where such qualification is required. Uni-Asia has full corporate
power and authority and all licenses, permits, and authorizations necessary to
carry on the businesses in which it is engaged and in which it presently
proposes to engage and to own and use the properties owned and used by it.
Schedule 2.1(x) attached hereto lists the directors and officers of Uni-Asia.
The Sellers have delivered to Buyer correct and complete copies of the articles
of incorporation and bylaws of Uni-Asia (as amended to date). The minute books
(containing the records of meetings of the stockholders, the board of directors,
and any committees of the board of directors), the stock certificate books, and
the stock record books of Uni-Asia are correct and complete. Uni-Asia is not in
default under or in violation of any

                                      -19-
<PAGE>

provision of its articles of incorporation or bylaws. Other than Uni-Asia,
Seller does not own an equity interest in another corporation or other business
entity.

          (y)  Broker's Fee.  Seller has no liability or obligation to pay any
               ------------
fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement.

          (z)  Disclosure.  No covenant, representation or warranty by Seller,
               ----------
and no written statement, schedule or certificate furnished or to be furnished
by Seller pursuant hereto or at the Closing hereunder, contains or will contain
any untrue statement of a material fact, or will omit to state a material fact
necessary to provide Buyer with complete and accurate information as to the
Seller, the Assets, or the Business or to make the statements therein not
misleading. All documentation and information furnished by Seller to Buyer are
accurate in all material respects.

     2.2  Representations and Warranties of Buyer.  Buyer represents and
          ---------------------------------------
warrants to Seller as follows:

          (a)  Organization and Standing.  Buyer is a corporation duly formed,
               -------------------------
validly existing, and in good standing under the laws of the State of Delaware.

          (b)  Authorization.  Buyer has all necessary power and authority to
               -------------
execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Agreement
has been duly approved by all necessary actions, and the Agreement constitutes a
valid and binding obligation of Buyer, enforceable against Buyer in accordance
with its terms.

          (c)  Noncontravention.  Neither the execution and the delivery of this
               ----------------
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which Buyer is subject or any provision of its
partnership agreement or (ii) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument, or other arrangement to which
Buyer is a party or by which it is bound or to which any of its assets is
subject. The execution and delivery of this Agreement by Buyer and the
performance of its obligations hereunder do not require, as to Buyer, any
consent or approval of, or action by, any governmental department, commission,
board, bureau, agency, or instrumentality, or any other third party.

          (d)  Broker's Fees.  Buyer has no liability or obligation to pay any
               -------------
fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement.

                                      -20-
<PAGE>

          (e)  Disclosure. No covenant, representation or warranty by Buyer, and
               ----------
no written statement, schedule or certificate furnished or to be furnished by
Buyer pursuant hereto or at the Closing hereunder, contains or will contain any
untrue statement of a material fact, or will omit to state a material fact
necessary to provide Seller with complete and accurate information as to the
Buyer, the Assets, or the Stations or to make the statements therein not
misleading. All documentation and information furnished by Buyer to Seller are
accurate in all material respects.

                                   ARTICLE 3
                       PERFORMANCE AT AND AFTER CLOSING

     3.1  Buyer's Performance at Closing.  At the Closing, Buyer shall execute
          ------------------------------
and deliver or cause to be delivered to Seller:

          (a)  Purchase Price.  The Purchase Price in the amount and manner as
               --------------
set forth in Section 1.5(b)(1) hereof and an acknowledgment that a stock
certificate representing the number of Purchase Shares determined pursuant to
Section 1.5(b)(2) will be delivered to Buyer when the Shelf Registration
Statement is declared effective by the Commission.

          (b)  Assignment of Leases.  An Assignment and Assumption of Leases in
               --------------------
the form attached hereto as Exhibit A.
                            ---------

          (c)  Assignment and Assumption Agreement. An Assignment and Assumption
               -----------------------------------
Agreement of the Contracts substantially in the form attached hereto as Exhibit
                                                                        -------
B.
-

          (d)  Restricted Stock Agreement.  A Restricted Stock Agreement is the
               --------------------------
form attached hereto as Exhibit C.
                        ---------

          (e)  Employment Agreements. Employment Agreements in the form attached
               ---------------------
hereto as Exhibit D for the following employees: Mac McQuilkin, Michael Fasel,
          ---------
Martin Bossler, Paul Friduss, Darren Howanietz and Brandon McQuilkin. The
specific terms of such employment is set forth on Schedule 3.1(e).

     3.2  Seller's Performance at Closing.  At the Closing, Seller shall execute
          -------------------------------
and deliver or cause to be delivered to Buyer:

          (a)  Resolutions.  Copies of (i) the resolutions of the board of
               -----------
directors and the Shareholders of Seller, certified by an officer of Seller as
being correct and complete and then in full force and effect, authorizing the
execution, delivery and performance of this Agreement and the agreements and
instruments called for hereunder, and the consummation of the transactions
contemplated hereby and by such agreements and instruments; (ii) Seller's
certificate of incorporation, certified by the Secretary of State of Seller's
state of incorporation; and (iii) good standing certificates for Seller from the
Secretary of State of Seller's state of incorporation and from the appropriate
authorities in each jurisdiction in which Seller is qualified to do business as

                                      -21-
<PAGE>

a foreign corporation, with respect to the ownership, possession, use or
operation of any of the Assets, dated not more than sixty (60) days prior to
Closing;

          (b)  Bill of Sale.  One or more bills of sale assigning, transferring,
               ------------
and conveying to Buyer free and clear title to all of the Tangible Assets to be
acquired by Buyer pursuant to the terms of this Agreement in the form of Exhibit
                                                                         -------
E attached hereto.
-

          (c)  Assignment and Assumption of Lease.  An Assignment Assumption of
               ----------------------------------
Lease in the form attached hereto as Exhibit A.
                                     ---------

          (d)  Assignment and Assumption Agreement. An Assignment and Assumption
               -----------------------------------
Agreement of the Contracts in the form attached hereto as Exhibit B.
                                                          ---------

          (e)  Assignment of Trademarks.  An Assignment of Trademarks in the
               ------------------------
form attached hereto as Exhibit F.
                        ---------

          (f)  Assignment of Patents.  As Assignment of Patents in the form
               ---------------------
attached hereto as Exhibit G.
                   ---------

          (g)  Assignment of Copyrights.  An Assignment of Copyrights in the
               ------------------------
form attached hereto as Exhibit K.
                        ---------

          (h)  Opinion of Seller's Counsel.  Buyer shall have received the
               ---------------------------
opinion of counsel to Seller dated the Closing Date, in form reasonably
acceptable to Buyer's counsel.

          (i)  Non-Compete Agreement.  Buyer shall have received a non-compete
               ---------------------
agreement from Seller and the Shareholders in the form attached hereto as
Exhibit H.
---------

          (j)  Restricted Stock Agreement.  A Restricted Stock Agreement, in the
               --------------------------
form attached hereto as Exhibit C, executed by the Shareholders, Michael Fasel,
                        ---------
Martin Bossler, Paul Friduss, Darren Howanietz and Brandon McQuilkin.

          (k)  Employment Agreements. Employment Agreements in the form attached
               ---------------------
as Exhibit D executed by following employees: Mac McQuilkin, Michael Fasel,
   ---------
Martin Bossler, Paul Friduss, Darren Howanietz and Brandon McQuilkin.

          (l)  Uni-Asia Shares.  Seller shall deliver to Buyer stock certificate
               ---------------
representing all of the outstanding shares of stock of Uni-Asia accompanied by a
stock power in the form attached hereto as Exhibit I.
                                           ---------

          (m)  Bulk Sales. Evidence of compliance with applicable state tax bulk
               ----------
sales notification laws, including proper notice, submission of required returns
and remittances, and release or removal of all stop orders.

                                      -22-
<PAGE>

          (n)  Name Change.  An amendment to Seller's Articles of Incorporation
               -----------
to effectuate a name change which shall be filed within five (5) business days
after the Closing Date.

          (o)  Other Matters.  As of the Closing except for Assumed Liabilities,
               -------------
Seller shall have extinguished all of its indebtedness and shall have obtained
all releases, termination of liens and other claims and encumbrances necessary
to transfer the Assets to Buyer free and clean of all liens, claims and
encumbrances, and shall have delivered to Buyer pay-off letters in the form
reasonably acceptable to Buyer.

     3.3  Allocation of Purchase Price.  Buyer and Seller hereby agree to
          ----------------------------
allocate the Purchase Price (and all other capitalized costs) among the Assets
for all purposes (including financial, accounting and tax purposes) in
accordance with the allocation schedule attached hereto as Exhibit J.
                                                           ---------

     3.4  Other Post-Closing Responsibilities.  Except as otherwise provided in
          -----------------------------------
this Agreement, from and after the Closing Date, Buyer shall assume, perform and
hold Seller harmless from all the liabilities, obligations and duties relating
to the Business and the Assets that accrue on or after the Closing Date,
pursuant to conditions and obligations herein recited, and Buyer shall be
possessed of all privileges and rights to be exercised and enjoyed in connection
with the ownership of the Assets.

                                   ARTICLE 4
                                INDEMNIFICATION

     4.1  Indemnification by Seller and Shareholders.  Subject to the conditions
          ------------------------------------------
and provisions of Section 4.3, Seller and the Shareholders, jointly and
severally, agree to indemnify, defend and hold harmless Buyer from and against
any and all demands, claims, complaints, actions or causes of action, suits,
proceedings, investigations, arbitrations, assessments, losses, damages,
liabilities, costs and expenses, including, but not limited to, interest,
penalties and attorneys' fees and disbursements, asserted against, imposed upon
or incurred by Buyer, directly or indirectly, by reason of or resulting from (a)
any liability, obligation, or claim (whether absolute, accrued, contingent or
otherwise and whether a contractual, tax or any other type of liability or
obligation or claim) not expressly assumed by Buyer pursuant to Section 1.3,
arising out of, relating to or resulting from the business of Seller or relating
to or resulting from the Assets during the period prior to the Closing Date; (b)
any misrepresentation or breach of the representations and warranties of Seller
contained in or made pursuant to this Agreement; (c) any noncompliance by Seller
with any covenants, agreements or undertakings of Seller contained in or made
pursuant to this Agreement; and (d) Seller's failure to comply with any
applicable bulk sales statutes, laws, rules, regulations or orders.
Notwithstanding anything to the contrary herein, Buyer shall not seek
indemnification from Seller with respect to representations regarding the
Accounts Receivable to the extent the Deferred Purchase Price is reduced by the
Accounts Receivable Adjustment.

                                      -23-
<PAGE>

     4.2  Indemnification by Buyer.  Subject to the conditions and provisions of
          ------------------------
Section 4.3, Buyer hereby agrees to indemnify, defend and hold harmless Seller
and the Shareholders from and against all demands, claims, complaints, actions
or causes of action, suits, proceedings, investigations, arbitrations,
assessments, losses, damages, liabilities, costs and expenses, including, but
not limited to, interest, penalties and attorneys' fees and disbursements,
asserted against, imposed upon or incurred by Seller, directly or indirectly, by
reason of or resulting from (a) any liability, obligation, or claim (whether
absolute, accrued, contingent or otherwise and whether contractual, tax or and
other type of liability or obligation or claim) expressly assumed by Buyer
pursuant to this Agreement; (b) any misrepresentation or breach of the
representations and warranties of Buyer contained in or made pursuant to this
Agreement; or (c) any noncompliance by Buyer with any covenants, agreements or
undertakings of Buyer contained in or made pursuant to this Agreement.

     4.3  Procedure.  In the event that any claim is asserted against a party
          ---------
hereto as to which such party is entitled to indemnification hereunder, such
party (the "Indemnified Party") shall (i) within thirty (30) days after
receiving written notice of the notice of any other third party claim (e.g., an
invoice, notice of assessment, etc.), or (ii) within a reasonable time after
becoming aware of the existence of any other claim as to which indemnification
may be sought, notify the party obligated to indemnify it (the "Indemnifying
Party") thereof in writing (which notice shall be in reasonable detail such that
the Indemnifying Party can ascertain the basis for such claim), provided,
however, that the failure to provide such notice shall not limit an Indemnified
Party from obtaining indemnification for such claim under this Article 4.  The
Indemnifying Party shall, upon receipt of the written notice, conduct at its
expense the defense against such claims in its own name, or, if necessary, in
the name of the Indemnified Party. The Indemnified Party shall cooperate with
and make available to the Indemnifying Party such assistance and materials as
may be reasonably requested of it, all at the expense of the Indemnifying Party,
and the Indemnified Party shall have the right to compromise and settle the
claim only with prior written consent of the Indemnifying Party, provided,
however, that the Indemnified Party may settle any claim against it at any time
by waiving its right to indemnification hereunder. Any judgment entered or
settlement agreed upon in the manner provided herein shall be binding upon the
Indemnifying Party and shall conclusively be deemed to be an obligation with
respect to which the Indemnified Party is entitled to indemnification hereunder.
All disputes between Seller on the one hand and Buyer on the other hand with
respect to indemnification hereunder, which cannot be resolved promptly by
mutual agreement, will be resolved by binding arbitration to be conducted in
Chicago, Illinois, pursuant to the rules proscribed from time to time by the
American Arbitration Association.

     4.4  Limitation.  Notwithstanding anything to the contrary herein, in no
          ----------
event shall Buyer, or Seller and the Shareholders collectively, be liable to the
other for indemnification obligations which, in the aggregate, exceed the
Purchase Price.

                                   ARTICLE 5
                             ADDITIONAL PROVISIONS

                                      -24-
<PAGE>

     5.1  Survival.  Except as otherwise specified, the representations and
          --------
warranties made by Sellers in this Agreement or pursuant hereto shall survive
the Closing Date for a period of two (2) years, provided that Sections 2.1(q),
2.1(r) and 2.1(s) shall survive the Closing Date for a period equal to the
applicable statute of limitations plus 45 days and Section 2.1(i) shall survive
without limitation as to time, and the representations and warranties made by
Sellers shall also survive and shall be unaffected by (and shall not be deemed
waived by) any investigation, audit, appraisal, or inspection at any time made
by or on behalf of Buyer.

     5.2  Expenses.  Each party hereto shall pay its own expenses incurred in
          --------
connection with this Agreement and in the preparation for and consummation of
the transactions provided for herein.

     5.3  Non-Violation.  Neither party shall take or omit to take any action
          -------------
(or permit any person, firm, or corporation under its control to take or omit to
take any action) that would violate or cause a violation of its representations
or warranties made herein or render the same inaccurate as of the date hereof or
which in any way would prevent the carrying out of this Agreement or
consummation of the transactions contemplated by this Agreement. Each of the
parties shall take all such action or further action as may be reasonably
necessary or desirable in order to effectuate the consummation of the
transactions contemplated hereby.

     5.4  Notices.  All notices under this Agreement shall be in writing and
          -------
shall be (i) delivered in person, (ii) sent by telecopy, or (iii) mailed,
postage prepaid, either by registered or certified mail, return receipt
requested, or overnight express carrier, addressed in each case as follows:

If to Seller, to:   Uniflame, Inc.
                    1817 N. Kenosha
                    Zion, Illinois 60099
                    Attn: Mac McQuilkin
                    Facsimile:

     with copy to:  Sugar, Friedberg & Felsenthal
                    30 N. LaSalle, Suite 2600
                    Chicago, Illinois 60602
                    Attn: Richard A. Sugar
                    Facsimile: 312/372-7951

If to Buyer, to:    Blue Rhino Corporation
                    104 Cambridge Plaza Drive
                    Winston-Salem, North Carolina 27104
                    Attn: Mark Castaneda
                    Facsimile:

     with copy to:  Pedersen & Houpt

                                     -25-
<PAGE>

                    161 N. Clark, Suite 3100
                    Chicago, Illinois 60601
                    Attn: John H. Muehlstein
                    Facsimile: 312/641-6895

or to any other address or telecopy number as such party shall designate in a
written notice to the other.  All notices sent pursuant to the terms of this
Section 10.4 shall be deemed received (i) if personally delivered, then on the
date of delivery; (ii) if sent by telecopy before 2:00 p.m. local time of the
recipient, on the day sent if a business day or if such day is not a business
day or if sent after 2:00 p.m. local time of the recipient, then on the next
business day; (iii) if sent by overnight, express carrier, on the next business
day immediately following the day sent; or (iv) if sent by registered or
certified mail, on the earlier of the third (3rd) business day following the day
sent or when actually received.  Any notice by telecopy shall be followed by
delivery of a copy of such notice on the next business day by overnight express
carrier or by hand.

     5.5  Amendment.  This Agreement may be amended only by an instrument in
          ---------
writing executed by all parties hereto.

     5.6  Successors and Assigns.  This Agreement shall be binding upon and
          ----------------------
inure only to the benefit of, and be enforceable against, the parties hereto and
their respective successors and assigns. Nothing in this Agreement, express or
implied, is intended to confer upon any person, other than the parties hereto
and their respective successors and assigns, any rights or remedies under or by
reason of this Agreement. Seller may not assign its rights or obligations
hereunder without the prior written consent of Buyer.

     5.7  Counterparts.  This Agreement may be executed in any number of
          ------------
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

     5.8  Press Release and Announcements.  Unless required by law, after the
          -------------------------------
date hereof, no press releases, announcements to the employees, advertisers, or
suppliers of the Seller, or other releases of information related to this
Agreement or the transactions contemplated hereby will be issued or released
without the joint consultation of Buyer and Seller. Buyer and Seller will
cooperate to prepare a joint press release to be issued on the Closing Date or,
upon the request of either Seller or Buyer, at the time of the execution of this
Agreement.

     5.9  Governing Law; Jurisdiction; Venue.  This Agreement shall be governed
          ----------------------------------
by and construed in accordance with the laws of the State of Illinois. Buyer,
Seller and the Shareholders agree that all actions or proceedings in any way,
manner or respect, arising out of or from or related to this Agreement shall be
litigated in courts having situs within the city of Chicago, state of Illinois.
Buyer, Seller and the Shareholders hereby consent and submit to the jurisdiction
of any local, state or federal courts located within said city and state. Buyer,
Seller and the Shareholders hereby waive any right they may have to transfer or
change the venue of any litigation brought against any of them by the other in
accordance with this section.

                                      -26-
<PAGE>

     5.10  Waivers.  Compliance with the provisions of this Agreement may be
           -------
waived only by an instrument in writing executed by the party granting the
waiver. The failure of any party at any time or times to require performance of
any provisions of this Agreement shall in no manner affect the right of such
party at a later time to enforce the same or any other provision of this
Agreement. No waiver of any condition or of the breach of any term contained in
this Agreement in one or more instances shall be deemed to be or be construed as
a further or continuing waiver of such condition or breach or of any other
condition or of the breach of any other term of this Agreement.

     5.11  Further Assurances; Cooperation.  At and after the Closing, Seller
           -------------------------------
will execute and deliver such further instruments of conveyance and transfer as
Buyer may reasonably request to convey and transfer effectively to Buyer the
Assets or to put Buyer in actual possession and control of the business and
assets of the Seller.

                 [Remainder of Page Intentionally Left Blank]

                                      -27-
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Asset Purchase Agreement
on the day and year first above written.

                                   Uniflame, Inc.

                                   By___________________________________________
                                   Its__________________________________________

                                   _____________________________________________
                                   Mac McQuilkin

                                   _____________________________________________
                                   James E. Harris

                                   Blue Rhino Corporation

                                   By___________________________________________
                                   Its__________________________________________

                               Signature Page to
                           Asset Purchase Agreement

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