Document:

<PAGE>

                                                                    EXHIBIT 10.5

                          TRADEMARK SECURITY AGREEMENT

         THIS TRADEMARK SECURITY AGREEMENT (as amended, restated, supplemented
or otherwise modified from time to time, this "Agreement") is entered into as of
November 20, 2002 by BLUE RHINO CORPORATION, a Delaware corporation, CPD
ASSOCIATES, INC., a North Carolina corporation, and UNIFLAME CORPORATION, a
Delaware corporation (collectively, the "Grantors"), in favor of BANK OF
AMERICA, N.A., as Administrative Agent (the "Administrative Agent") under the
Credit Agreement (as defined below).

         The Grantors own certain trademarks and service marks, including those
trademark registrations and trademark applications listed on Schedule 1 annexed
hereto, and are parties to the trademark licenses listed on Schedule 2 annexed
hereto; and

         Pursuant to the terms of the Collateral Agreement dated of even date
herewith (as amended, restated, supplemented or otherwise modified from time to
time, the "Collateral Agreement"), between the Grantors and the Administrative
Agent, the Grantors have granted to the Administrative Agent a security interest
in certain assets of the Grantors, including all right, title and interest of
each of the Grantors in, to and under all Trademark Collateral (as hereinafter
defined) as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations owing by Blue Rhino Corporation, as Borrower (the
"Borrower") under the Credit Agreement, dated of even date herewith (as amended,
restated, supplemented or otherwise modified, the "Credit Agreement"), by and
among the Borrower, the Lenders party thereto and the Administrative Agent, and
the other Loan Documents described in the Credit Agreement. All capitalized
terms defined in the Credit Agreement or the Collateral Agreement and not
otherwise defined herein have the respective meanings provided for in the Credit
Agreement or the Collateral Agreement, as applicable.

         To induce the Administrative Agent and the Lenders to enter into the
Credit Agreement and to induce the Lenders to make their respective Credit
Extensions to the Borrowers thereunder, each Grantor hereby agrees with the
Administrative Agent, for the ratable benefit of itself and the Lenders, as
follows:

         1. GRANT OF SECURITY INTEREST. Each Grantor does hereby grant to the
Administrative Agent a- continuing security interest in all of such Grantor's
right, title and interest in, to and under all of the following (all of the
following items or types of property being herein collectively referred to as
the "Trademark Collateral"), whether now existing or hereafter created or
acquired, as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations:

                  (a) all Trademarks, including, without limitation, each
Trademark referred to in Schedule 1 annexed hereto together with any divisions
or renewals thereof;

                  (b) all Trademark Licenses and other agreements providing the
Grantor with the right to use, or pursuant to which such Grantor provides the
right to use, any of the items described in Section 1(a), including each
Trademark license referred to in Schedule 2 annexed hereto;

<PAGE>

                  (c) all of the goodwill of the business connected with the use
of, and symbolized by, each item described in Section 1(a) or Section 1(b);

                  (d) the right to sue third parties for past, present or future
infringements of any Trademark Collateral described in Section 1(a) and, to the
extent applicable, Section 1(b); and

                  (e) all products and proceeds of, and the rights associated
with, the foregoing, including, without limitation, any claim by such Grantor
against third parties for past, present or future (i) infringement or dilution
of any Trademark or Trademark registration including, without limitation, the
Trademarks and Trademark registrations referred to in Schedule 1 annexed hereto,
the Trademark registrations issued with respect to the Trademark applications
referred to in Schedule 1 and the trademarks licensed under any Trademark
License, (ii) injury to the goodwill associated with the use of any such
Trademark, Trademark registration or trademark licensed under any Trademark
License, or (iii) breach or enforcement of any Trademark license.

         2. OTHER SECURITY INTERESTS. This security interest is granted in
conjunction with the security interests granted to the Administrative Agent
pursuant to the Collateral Agreement. Each Grantor hereby acknowledges and
affirms that the rights and remedies of the Administrative Agent with respect to
the security interest granted herein are without prejudice to, and are in
addition to, those set forth in the Collateral Agreement, the terms and
provisions of which are incorporated by reference herein as if fully set forth
herein. In the event that any provisions of this Agreement are deemed to
conflict with the Collateral Agreement, the provisions of the Collateral
Agreement shall govern.

         3. RESTRICTIONS ON FUTURE AGREEMENTS. Each Grantor agrees that until
all Obligations shall have been satisfied in full and the Credit Agreement shall
have been terminated, such Grantor will not, without the Administrative Agent's
prior written consent, enter into any agreement including, without limitation,
any license agreement, which is inconsistent with such Grantor's obligations
under this Agreement if such action would reasonably be expected to materially
adversely affect the fair market value of the Trademark Collateral or the
benefits of this Agreement to the Administrative Agent, and each Grantor further
agrees that it will not take any action, or permit any action to be taken by
others subject to its control, including licensees, or fail to take any action,
which would materially adversely affect the validity or enforcement of the
rights transferred to the Administrative Agent under this Agreement.

         4. NEW TRADEMARKS. Each Grantor represents and warrants to the
Administrative Agent that the Trademarks listed on Schedule 1 and the Trademark
Licenses listed on Schedule 2 constitute all of the Trademarks now owned by or
licensed to such Grantor for which registrations have been issued or applied for
in the United States Patent and Trademark Office. If, before the Obligations
have been satisfied in full and the Credit Agreement terminated, the Grantor
shall (i) obtain rights to any new trademarks, trademark registrations or
applications or tradenames used in the United States or in any foreign country
or (ii) become entitled to the benefit of any trademark application, trademark,
trademark registration or tradename used in the United States or in any foreign
country, the provisions of Section 1 above shall automatically apply thereto and
the Grantor shall give to the Administrative Agent prompt written notice
thereof. The Grantor hereby authorizes the Administrative Agent to modify this
Agreement

                                       2
<PAGE>

upon such written notice by amending Schedule 1 and Schedule 2 to include any
future trademarks, trademark registrations, trademark applications, tradenames
and license agreements which are Trademarks, as applicable, under Section 1
above or under this Section 4.

         5. LENDERS NOT LIABLE. Neither the Administrative Agent nor any Lender
by virtue of this Agreement assumes any obligations whatsoever in respect of the
Trademark Collateral including, without limitations, any obligation to renew
registrations of or defend the validity, enforceability or distinctiveness of
the Trademark Collateral.

         6. COUNTERPARTS. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by
telecopy) and all of said counterparts, taken together, shall be deemed to
constitute one and the same instrument.

         7. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the
successors and assigns of the Grantors and shall inure to the benefit of the
Grantors, the Administrative Agent and the Lenders and their successors and
assigns; provided that no Grantor may assign, transfer or delegate any of its
rights or obligations under this Agreement without the prior written consent of
the Administrative Agent.

                            [Signature Pages Follow]

                                       3
<PAGE>

         IN WITNESS WHEREOF, the Grantors have caused this Trademark Security
Agreement to be duly executed by their duly authorized officer thereunto, all as
of the date first set forth above.

                           BLUE RHINO CORPORATION,
                           as Grantor

                           By:  /s/ Mark Castaneda
                                -----------------------------------------------
                                    Name:    Mark Castaneda
                                    Title:   Executive Vice President and Chief
                                             Financial Officer

                           CPD ASSOCIATES, INC., as Guarantor

                           By:  /s/ Mark Castaneda
                                -----------------------------------------------
                                    Name:    Mark Castaneda
                                    Title:   Vice President

                           UNIFLAME CORPORATION, as Grantor

                           By:  /s/ Kurt Gehsmann
                                -----------------------------------------------
                                    Name:    Kurt Gehsmann
                                    Title:   Vice President

                           [Signature Pages Continue]

                                       4
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF NORTH CAROLINA

COUNTY OF FORSYTH

         I, Abbye R. Caudle, a Notary Public for said County and State, do
hereby certify that Mark Castaneda personally appeared before me this day and
stated that he is Exec. VP & CFO of BLUE RHINO CORPORATION and acknowledged the
due execution of the foregoing instrument.

         Witness my hand and official seal, this 13th day of November, 2002.

                                           /s/ Abbye R. Caudle
                                  ---------------------------------------
                                  Notary Public

My commission expires:

         9/26/04
------------------------

                                       5
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF NORTH CAROLINA

COUNTY OF FORSYTH

         I, Abbye R. Caudle, a Notary Public for said County and State, do
hereby certify that Mark Castaneda personally appeared before me this day and
stated that he is Vice President of CPD ASSOCIATES, INC. and acknowledged the
due execution of the foregoing instrument.

         Witness my hand and official seal, this 13th day of November, 2002.

                                           /s/ Abbye R. Caudle
                                  ---------------------------------------
                                  Notary Public

My commission expires:

         9/26/04
------------------------

                                       6
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF NORTH CAROLINA

COUNTY OF FORSYTH

         I, Abbye R. Caudle a Notary Public for said County and State, do hereby
certify that Kurt Gehsmann personally appeared before me this day and stated
that he is Vice President of UNIFLAME CORPORATION and acknowledged the due
execution of the foregoing instrument.

         Witness my hand and official seal, this 13th day of November, 2002.

                                           /s/ Abbye R. Caudle
                                  ---------------------------------------
                                  Notary Public

My commission expires:

         9/26/04
------------------------

                                       7
<PAGE>

Agreed and Accepted as of November 20, 2002.

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

By:  /s/ Michael Brashler
      --------------------------------------
         Name:    Michael Brashler
         Title:   Vice President and Senior Agency Officer

                            [Acknowledgment Follows]

                                       8
<PAGE>

Schedule 1

<TABLE>
<CAPTION>
----------------------- --------------------- -------------------- --------------------- --------------------
INTELLECTUAL              TRADEMARK            DATE OF FIRST USE       EFFECTIVE OR            STATUS
PROPERTY MARK               OWNER                 IN COMMERCE         FILING DATE OF
                                                                     REGISTRATION OR
                                                                       APPLICATION
----------------------- --------------------- -------------------- --------------------- --------------------
<S>                     <C>                   <C>                  <C>                   <C>
AMERICA'S               BLUE RHINO            April 20, 1999           May 6, 1999       Affidavit of use
CHOICE FOR              CORPORATION                                                      due after April
GRILL GAS               104 Cambridge                                                    10, 2006, but
                        Plaza Drive                                                      before April 10,
Reg. No.                Winston-Salem,                                                   2007; renewal due
2,443,339               NC 27104                                                         April 10, 2011
Registered: April
10, 2001
----------------------- --------------------- -------------------- --------------------- --------------------
BISON                   BLUE RHINO            February 24, 1998     September 1, 1998    Affidavit of use
                        CORPORATION                                                      due after July 13,
Reg. No.                104 Cambridge                                                    2004, but before
2,261,216               Plaza Drive                                                      July 13, 2005;
Registered July         Winston-Salem,                                                   renewal due July
13, 1999                NC 27104                                                         13, 2009.
----------------------- --------------------- -------------------- --------------------- --------------------
BISON Design            BLUE RHINO            February 24, 1998     September 1, 1998    Affidavit of use
                        CORPORATION                                                      due after July 13,
Reg. No.                104 Cambridge                                                    2004, but before
2,261,220               Plaza Drive                                                      July 13, 2005;
Registered July         Winston-Salem,                                                   renewal due July
13, 1999                NC 27104                                                         13, 2009.
----------------------- --------------------- -------------------- --------------------- --------------------
BLUE RHINO & Design     CPD ASSOCIATES, INC.  March 24, 1994           May 23, 1994      Renewal due June
                        104 Cambridge Plaza                                              13, 2005
Reg. No. 1,898,501      Drive
Registered: June 13,    Winston-Salem, NC
1995                    27104
----------------------- --------------------- -------------------- --------------------- --------------------
DURACLAY                BLUE RHINO            April 16, 1996          July 16, 1996      Affidavit of use
                        CORPORATION                                                      due after May 6,
Reg. No. 2,059,459      104 Cambridge Plaza                                              2002, but before
Registered May 6, 1997  Drive                                                            May 6, 2003;
                        Winston-Salem, NC                                                renewal due May 6,
                        27104                                                            2007.
----------------------- --------------------- -------------------- --------------------- --------------------
ENDLESS SUMMER          BLUE RHINO            September 2, 1998      August 25, 1998     Application
                        CORPORATION                                                      pending; Statement
Reg. No. 2,493,024      104 Cambridge Plaza                                              of Use accepted
Registered: September   Drive                                                            March 20, 2001,
25, 2001                Winston-Salem, NC                                                application will
                        27104                                                            register in due
                                                                                         course.
----------------------- --------------------- -------------------- --------------------- --------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------  ------------------------------------------
INTELLECTUAL              DESCRIPTION OF GOODS AND
PROPERTY MARK               SERVICES/INT. CLASSES

-----------------------  ------------------------------------------
<S>                      <C>
AMERICA'S                Propane gas (Int. 4); Metal propane gas
CHOICE FOR               cylinders (Int. 6); and exchanging and
GRILL GAS                refurbishing propane gas cylinders (Int.
                         37).
Reg. No.
2,443,339
Registered: April
10, 2001
-----------------------  ------------------------------------------
BISON                    Manually operated valves made primarily
                         of metal for use on propane gas tanks
Reg. No.                 (Int. 6).
2,261,216
Registered July
13, 1999
-----------------------  ------------------------------------------
BISON Design             Manually operated valves made primarily
                         of metal for use on propane gas tanks
Reg. No.                 (Int. 6).
2,261,220
Registered July
13, 1999
-----------------------  ------------------------------------------
BLUE RHINO & Design      Propane gas (Int. 4) and metal propane
                         gas cylinders (Int. 6).
Reg. No. 1,898,501
Registered: June 13,
1995
-----------------------  ------------------------------------------
DURACLAY                 Planters for gardening (Int. 21).

Reg. No. 2,059,459
Registered May 6, 1997

-----------------------  ------------------------------------------
ENDLESS SUMMER           Portable Propane heaters (Int. 11).

Reg. No. 2,493,024
Registered: September
25, 2001

-----------------------  ------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<S>                     <C>                   <C>                  <C>                   <C>
----------------------- --------------------- -------------------- --------------------- --------------------
ENDLESS SUMMER          CPD ASSOCIATES, INC.          N/A           February 14, 2001    Application pending
                        104 Cambridge Plaza
                        Drive
                        Winston-Salem, NC
                        27104
Serial No. 76/212,933

APPLICATION BEING
PROSECUTED BY
LAWRENCE J. CRAIN

</TABLE>

<TABLE>
<S>                      <C>
-----------------------  ------------------------------------------
ENDLESS SUMMER           Propane gas; firewood and gelled alcohol
                         fuel
                         (Int. 4); Manually operated valves made
                         primarily of metal for use on propane
                         gas tanks; metal propane gas cylinders;
Serial No. 76/212,933    and metal goods namely metal trellises,
                         door stops, metal weather vanes,
                         freestanding tool racks, andirons,
APPLICATION BEING        baskets, hooks, log racks, fireplace
PROSECUTED BY            fenders, sculptures composed of
LAWRENCE J. CRAIN        non-precious metal, storage boxes (Int.
                         6); Hand tools, namely shovels, trowels,
                         rakes, hoes, pokers and tongs; barbecue
                         hand-tools and utensils, namely forks and
                         tongs (Int. 8); Portable electric heaters;
                         portable gas heaters; fireplace inserts
                         composed of andirons, artificial logs and
                         artificial embers fueled by gas,
                         electricity, or alcohol; gas pilots;
                         barbecue grills, replacement barbecue
                         burners and cooking grills; and fitted
                         and/or semi-fitted barbecue grill covers;
                         ornamental outdoor fountains; outdoor
                         fireplaces (Int. 11); Furniture and
                         articles, namely plant stands, garden
                         furniture, non-metal weather vanes,
                         free-standing non-metal tool racks,
                         fireplace screens, benches, magazine racks,
                         domestic fireplace bellows, hangers for
                         fireplace accessories; (Int. 20); Planters
                         for gardening; house wares and glass, namely
                         plant holders, flower pots and vases; wood
                         baskets, fireplace brushes, ash buckets, ash
                         bins, metal buckets/pots, teapots not of
                         precious metal; and barbecue hand-tools and
                         utensils, namely spatulas, scraping and
                         basting brushes; insect traps (Int. 21);
                         Distributorships featuring new, used and
                         reconditioned heaters; independent sales
                         representatives in the fields of new, used
                         and reconditioned heaters; wholesale and
                         retail sales and leasing of new, used and
                         reconditioned heaters (Int. 35); and
                         Installation, repair and maintenance of
                         heaters and leasing of heaters; exchanging
                         and refurbishing propane gas cylinders (Int.
                         37).
-----------------------  ------------------------------------------
</TABLE>

<PAGE>

<TABLE>
----------------------- --------------------- -------------------- --------------------- --------------------
<S>                     <C>                   <C>                    <C>                 <C>
ENDLESS SUMMER COMFORT  BLUE RHINO            September 2, 1998      August 25, 1998     Affidavit of use
                        CORPORATION                                                      due after January
                        104 Cambridge Plaza                                              16, 2006, but
                        Drive                                                            before January 16,
Reg. No. 2,421,880      Winston-Salem, NC                                                2007; renewal due
Registered: January     27104                                                            January 16, 2011.
16, 2001

----------------------- --------------------- -------------------- --------------------- --------------------
ENJOY OUTDOOR LIVING    BLUE RHINO                                     May 6, 1999       APPLICATION
- LONGER                CORPORATION                                                      ABANDONED FOR
                        104 Cambridge Plaza                                              FAILURE TO FILE A
                        Drive                                                            STATEMENT OF USE
                        Winston-Salem, NC                                                EFFECTIVE NOVEMBER
                        27104                                                            26, 2000

----------------------- --------------------- -------------------- --------------------- --------------------
GARDEN ART              BLUE RHINO            January 1, 1997        August 18, 1995     Affidavit of use
                        CORPORATION                                                      due after
Reg. No. 2,191,603      104 Cambridge Plaza                                              September 22,
Registration No.        Drive                                                            2003, but before
September 22, 1998      Winston-Salem, NC                                                September 22,
                        27104                                                            2004; renewal due
                                                                                         September 22, 2008.

----------------------- --------------------- -------------------- --------------------- --------------------
GRILL AFICIONADO        CPD ASSOCIATES, INC.  N/A                   September 24, 2001   Affidavit of use
                        104 Cambridge Plaza                                              due - date TBD
Application No.         Drive
76/316,142              Winston-Salem, NC
                        27104
----------------------- --------------------- -------------------- --------------------- --------------------
GRILL GAS & Design      BLUE RHINO            September 7, 1999        May 6, 1999       Affidavit of use
                        CORPORATION                                                      due after May 22,
Reg. No. 2,454,250      104 Cambridge Plaza                                              2006, but before
Registered: May 22,     Drive                                                            May 22, 2007;
2001                    Winston-Salem, NC                                                renewal due May
                        27104                                                            22, 2011.
----------------------- --------------------- -------------------- --------------------- --------------------
HARMONY                 UNIFLAME                      N/A            October 18, 2000    Application
                        Corporation                                                      pending; non-final
Serial No. 76/148,835   1817 North Kenosha                                               action mailed
                        Road                                                             March 26, 2001
APPLICATION BEING       Zion, Illinois 60095
PROSECUTED BY
LAWRENCE J. CRAIN
----------------------- --------------------- -------------------- --------------------- --------------------
</TABLE>

<TABLE>
-----------------------  ------------------------------------------
<S>                      <C>
ENDLESS SUMMER COMFORT   Distributorships featuring new, used,
                         and reconditioned heaters; independent
                         sales representatives in the fields of
                         new, used, and reconditioned heaters;
Reg. No. 2,421,880       wholesale and retail sales of new, used,
Registered: January      and reconditioned heaters (Int. 35); and
16, 2001                 Installation, repair, and maintenance of
                         heaters and leasing of heaters (Int. 37).
-----------------------  ------------------------------------------
ENJOY OUTDOOR LIVING     Portable propane heaters (Int. 11);
- LONGER                 Distributorships featuring new, used,
                         and reconditioned heaters; independent
                         sales representatives in the fields of
                         new, used, and reconditioned heaters;
                         wholesale and retail sales of new, used,
                         and reconditioned heaters (Int. 35); and
                         Installation, repair, and maintenance of
                         heaters and leasing of heaters (Int. 37).
-----------------------  ------------------------------------------
GARDEN ART               Metal goods, namely, metal trellises,
                         door stops, metal weather vanes, and
Reg. No. 2,191,603       freestanding metal tool racks (Int. 6);
Registration No.         Hand tools, namely, shovels, trowels,
September 22, 1998       forks, rakes, and hoes (Int. 8);
                         Non-metallic building materials, namely,
                         non-metal trellises and wooden fencing
                         stays (Int. 19); Furniture and articles,
                         namely, plant stands; garden furniture,
                         non-metal weather vanes; free-standing
                         non-metal tool racks (Int. 20); and
                         Housewares and glass, namely, plant
                         holders, flower pots, and vases (Int.
                         21).
-----------------------  ------------------------------------------
GRILL AFICIONADO         Propane Gas (Int. 4); Cooking utensils
                         (Int. 21); Educational services (Int.
Application No.          Class 41); Consulting Services (Class 42)
76/316,142

-----------------------  ------------------------------------------
GRILL GAS & Design       Propane gas (Int. 4); Metal propane gas
                         cylinders (Int. 6); and exchanging and
Reg. No. 2,454,250       refurbishing propane gas cylinders (Int.
Registered: May 22,      37).
2001

-----------------------  ------------------------------------------
HARMONY                  Giftware, including fountains, ceramics,
                         candles and candle holders (Int. 21).
Serial No. 76/148,835

APPLICATION BEING
PROSECUTED BY
LAWRENCE J. CRAIN
-----------------------  ------------------------------------------
</TABLE>

<PAGE>

<TABLE>
----------------------- --------------------- -------------------- --------------------- --------------------
<S>                     <C>                     <C>                 <C>                  <C>
RHINOTUFF               CPD ASSOCIATES, INC.    April 15, 1996      February 29, 1996    Affidavit of use
                        104 Cambridge Plaza                                              due after October
Reg. No. 2,102,712      Drive                                                            7, 2002, but
Registered: October     Winston-Salem, NC                                                before October 7,
7, 1997                 27104                                                            2003; renewal due
                                                                                         October 7, 2007.
----------------------- --------------------- -------------------- --------------------- --------------------
SHIPPINGSPOT            CPD ASSOCIATES, INC.          N/A          Filed April 23, 2001  Application pending
                        104 Cambridge Plaza
Serial No. 76/245,033   Drive
                        Winston-Salem, NC
                        27104
----------------------- --------------------- -------------------- --------------------- --------------------
SHIPPINGSPOT            CPD ASSOCIATES, INC.          N/A          Filed September 24,   Application pending
                        104 Cambridge Plaza                                2001
Design                  Drive
                        Winston-Salem, NC
Serial No. 76/316,141   27104
----------------------- --------------------- -------------------- --------------------- --------------------
SKEETERVAC              CPD ASSOCIATES, INC.          N/A          Filed April 5, 2002   Application pending
                        104 Cambridge Plaza
Application No.:        Drive
76/392,024              Winston-Salem, NC
                        27104
----------------------- --------------------- -------------------- --------------------- --------------------
TRI-SAFE                                        January 1, 1998       March 2, 1998      Affidavit of use
                                                                                         due after June 29,
Reg. No. 2,256,865      CPD ASSOCIATES, INC.                                             2004, but before
Registered: June 29,    104 Cambridge Plaza                                              June 29, 2005;
1999                    Drive                                                            renewal due June
                        Winston-Salem, NC                                                29, 2009.
Note - moved from       27104
Pederson Haupt to A&B
2.02
----------------------- --------------------- -------------------- --------------------- --------------------
UNIFLAME                BLUE RHINO                 June 1990         January 10, 1997    Affidavit of use
                        CORPORATION                                                      due after March 3,
Reg. No. 2,140,530      104 Cambridge Plaza                                              2003, but before
Registered March 3,     Drive                                                            March 3, 2004;
1998                    Winston-Salem, NC                                                renewal due March
                        27104                                                            3, 2008.
----------------------- --------------------- -------------------- --------------------- --------------------
</TABLE>

<TABLE>
-----------------------  ------------------------------------------
<S>                      <C>
RHINOTUFF                Removable cylindrical plastic coverings
                         for protecting and labeling reusable gas
Reg. No. 2,102,712       cylinders (Int. 20).
Registered: October
7, 1997
-----------------------  ------------------------------------------
SHIPPINGSPOT             Computer hardware and software (Int. 9);
                         Cooperative advertising and marketing
Serial No. 76/245,033    (Int. 35); Shipping enablement services;
                         packing and storing of goods and parcels
                         for transport and arranging for
                         transport with a carrier; (Int. 39);
                         Technical consulting services regarding
                         computer hardware and software (Int. 42).
-----------------------  ------------------------------------------
SHIPPINGSPOT             Computer hardware and software (Int. 9);
                         Cooperative advertising and marketing
Design                   (Int. 35); Shipping enablement services;
                         packing and storing of goods and parcels
Serial No. 76/316,141    for transport and arranging for
                         transport with a carrier; (Int. 39);
                         Technical consulting services regarding
                         computer hardware and software (Int. 42).
-----------------------  ------------------------------------------
SKEETERVAC               Propane devices for exterminating
                         insects (Int. Class 7).
Application No.:
76/392,024
-----------------------  ------------------------------------------
TRI-SAFE                 Safety device in the nature of a floater
                         piece for use in propane cylinder valves
Reg. No. 2,256,865       to prevent overfilling of the propane
Registered: June 29,     cylinder (Int. 9).
1999

Note - moved from
Pederson Haupt to A&B
2.02
-----------------------  ------------------------------------------
UNIFLAME                 Firewood and gelled alcohol fuel (Int.
                         4); Metal products, namely andirons,
Reg. No. 2,140,530       wood baskets, hooks, log racks,
Registered March 3,      freestanding tool racks, fireplace
1998                     fenders, sculptures composed of
                         non-precious metal, storage boxes (Int.
                         6); Hand tools, namely, shovels, pokers,
                         and tongs (Int. 8); Portable electric
                         heaters; fireplace inserts composed of
                         andirons, artificial logs and artificial
                         embers fueled by gas, electricity, or
                         alcohol; gas pilots; (Int. 11); Fire log
                         tote bags (Int. 18): Fireplace mantels
                         and fireplace surrounds (Int. 19);
                         Fireplace screens, benches, magazine
                         racks, domestic fireplace bellows,
                         hangers for fireplace accessories (Int.
                         20); Woodbaskets of wood, fireplace
                         brushes, ash buckets, ash bins, metal
                         buckets/pots, teapots not of precious
                         metal (Int. 21); Matches, matchboxes
                         composed of non-precious metal (Int. 34).
-----------------------  ------------------------------------------
</TABLE>
<PAGE>

<TABLE>
----------------------- --------------------- -------------------- --------------------- --------------------
<S>                     <C>                     <C>                 <C>                  <C>
UNIFLAME                UNIFLAME                      N/A             March 3, 1998      Application pending
                        Corporation
                        1817 North Kenosha
Serial No. 76/249,710   Road
                        Zion, Illinois 60095

----------------------- --------------------- -------------------- --------------------- --------------------
UNIGRILL                BLUE RHINO            February 1, 1997      November 20, 1996    Affidavit of use
                        CORPORATION                                                      due after May 4,
Reg. No. 2,243,212      104 Cambridge Plaza                                              2004, but before
Registered May 4, 1999  Drive                                                            May 4, 2005;
                        Winston-Salem, NC                                                renewal due May 4,
                        27104                                                            2009.

----------------------- --------------------- -------------------- --------------------- --------------------
</TABLE>

<TABLE>
-----------------------  ------------------------------------------
<S>                      <C>
UNIFLAME                 Propane gas (Int. 4); Manually operated
                         valves made primarily of metal for use
                         on propane tanks; metal propane gas
Serial No. 76/249,710    cylinders; and metal goods, namely,
                         metal trellises, doorstops, metal
                         weather vanes, baskets (Int. 6); Hand tools,
                         namely, trowels, rakes and hoes; barbeque
                         hand tools and utensils, namely forks and
                         tongs (Int. 8); Portable gas heaters;
                         barbeque grills, replacement barbeque
                         burners and cooking grills; fitted and/or
                         semi-fitted barbeque grill covers;
                         ornamental outdoor fountains; outdoor
                         fireplaces (Int. 11); Furniture and
                         articles, namely plant stands, garden
                         furniture, non-metal weather vanes,
                         free-standing non-metal tool racks (Int.
                         20); Planters for gardening, housewares and
                         glass, namely, plant holders, flower pots,
                         and vases, barbeque hand tools and utensils,
                         namely spatulas, scraping and basting
                         brushes; insect traps (Int. 21);
                         Distributorships featuring new, used and
                         reconditioned heaters; independent sales
                         representatives in the files of new, used
                         and reconditioned heaters; wholesale and
                         retail sales and leasing of new, used and
                         reconditioned heaters (Int. 35); and
                         Installation, repair and maintenance of
                         heaters and leasing of heaters; exchange and
                         refurbishing propane gas cylinders (Int.
                         37).
-----------------------  ------------------------------------------
UNIGRILL                 Barbecue grills; fitted and/or
                         semi-fitted barbecue grill covers  (Int.
Reg. No. 2,243,212       8); Barbecue hand-tools and utensils,
Registered May 4, 1999   namely, spatulas and scraping and
                         basting brushes (Int. 11); Barbecue
                         hand-tools and utensils, namely, forks,
                         and tongs  (Int. 21).
-----------------------  ------------------------------------------
</TABLE>

<PAGE>

                                   Schedule 2
                                  to Trademark
                               Security Agreement

                                      None<PAGE>

                                                                    EXHIBIT 10.6

                               FIRST AMENDMENT TO
                              INVESTMENT AGREEMENT

         THIS FIRST AMENDMENT TO INVESTMENT AGREEMENT (this "First Amendment")
is made as of November 20, 2002 by and among: (i) Blue Rhino Corporation, a
Delaware corporation (the "Company"), (ii) USA Leasing, L.L.C., a Delaware
limited liability company, Rhino Services, L.L.C., a Delaware limited liability
company, CPD Associates, Inc., a North Carolina corporation, Quickship, Inc., a
Delaware corporation, Uniflame Corporation, a Delaware corporation, Blue Rhino
Consumer Products, LLC, a Delaware limited liability company and Uniflame, LLC,
a Delaware limited liability company (collectively with the Company, the
"Borrowers"); and (iii) Allied Capital Corporation, a Maryland corporation
("Allied").

                                    RECITALS:

         A. Allied invested the aggregate sum of Fifteen Million Dollars
($15,000,000) in the Borrowers in exchange for certain debentures and a warrant
to purchase the common stock of the Company, pursuant to an Investment Agreement
among Allied and the Borrowers dated June 15, 2001 (the "Original Investment
Agreement;" as amended by this First Amendment and as further amended from time
to time, the "Investment Agreement").

         B. The Borrowers have now requested that Allied modify certain terms of
the Investment Agreement, and Allied has agreed subject to the terms and
conditions hereof.

         NOW, THEREFORE, in consideration of the foregoing Recitals and the
mutual covenants contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Allied and its
successors and assigns with respect to any of the Debentures or the Warrant, and
the Borrowers hereby agree as follows:

                  1. Definitions.

                  (a) All capitalized terms used herein without definition shall
have the meanings given to such terms in the Investment Agreement.

                  (b) Each of the following definitions set forth in Section 1.1
is hereby deleted in its entirety and amended and restated as follows:

         "Asset Disposition" means any sale, lease (other than operating leases
entered into in the ordinary course of business), transfer or other disposition
(or series of related sales, leases, transfers or dispositions) by the Company
or any of its Subsidiaries, including any disposition by means of a merger,
consolidation or similar transaction (each referred to for the purposes of this
definition as a "disposition") of any assets of the Company or any of its
Subsidiaries other than (a) the sale or other disposition of obsolete,
uneconomical, negligible, worn-out or surplus assets in the ordinary course of
business and in a commercially reasonable manner (including but not limited to
equipment and intellectual property) so long as the proceeds from such sale or
other disposition are applied to replace or upgrade the assets of the Company or
its Subsidiaries or to repay the Senior Debt or amounts outstanding under the
Debentures, (b) the sale of Inventory in

<PAGE>

the ordinary course of business for fair value and on an arms'-length basis, (c)
the sale, lease, transfer or other disposition of assets in connection with a
Permitted Reorganization; (d) the sale, lease transfer or other disposition of
assets from the Company or any of its Subsidiaries to any Credit Party; (e) the
Non-Propane Products Divestiture; provided that both before and after giving
effect to such disposition (i) no Default or Event of Default has occurred and
is continuing and (ii) the Company shall have demonstrated pro forma compliance
with the financial covenants set forth in Section 6.12; (f) dispositions by the
Company or any Subsidiary thereof, of assets acquired in connection with a
Permitted Acquisition that the Company or such Subsidiary intended to sell at
the time of such Permitted Acquisition; provided that (i) such assets were
identified in writing to the Holders at the time of such Permitted Acquisition
and (ii) the aggregate fair market value of such assets does not exceed fifteen
percent (15%) of the aggregate consideration paid in connection with such
Permitted Acquisition and (iii) so long as the proceeds from such sale or other
disposition are applied to repay the Senior Debt or amounts outstanding under
the Debentures; or (g) the sale, lease, transfer or other disposition of assets
in any Fiscal Year having a book value, in the aggregate with all other assets
(except assets which are excluded under clauses (a) through (f) above) sold,
leased, transferred or disposed of during such Fiscal Year, not to exceed
$1,000,000 so long as the proceeds from such sale or other disposition are
applied to repay the Senior Debt or amounts outstanding under the Debentures.

         "Fixed Charge Ratio" means, as of the date of determination, the ratio
of (a) aggregate EBITDA of the Company for the immediately preceding four (4)
fiscal quarter period ending on, or most recently ended prior to, such date of
determination plus Consolidated Rental Expenses of the Company during such
period less the sum of (i) Maintenance Capital Expenditures made during such
period and (ii) cash income taxes (federal, state, local and foreign) paid
during such period to (b) the sum of (i) all scheduled payments of principal
made with respect to Indebtedness during such period, (ii) Interest Expense paid
in cash during such period, (iii) dividends paid in cash by the Company paid
during such period and (iv) Consolidated Rental Expenses of the Company during
such period.

         "Funded Indebtedness" means, as of any date of determination, for any
Person on a consolidated basis, the sum of the following of such Person and its
Subsidiaries (determined in accordance with GAAP on a Consolidated basis and
without duplication): (a) the outstanding principal amount of all obligations,
whether current or long-term, for borrowed money (including Obligations
hereunder) and all obligations evidenced by bonds, debentures, notes, loan
agreements or other similar instruments, (b) all direct obligations arising
under letters of credit (including standby and commercial), bankers'
acceptances, bank guaranties, surety bonds and similar instruments, (c) all
obligations in respect of the deferred purchase price of property or services
(other than accrued liabilities and all trade accounts payable in the ordinary
course of business), including, without limitation, all purchase money
Indebtedness, (d) Attributable Indebtedness in respect of capital leases and
Synthetic Lease Obligations, (e) without duplication, all Guarantees with
respect to outstanding Indebtedness of the types specified in clauses (a)
through (d) above of Persons other than such Person or any of its Subsidiaries,
and (g) all Indebtedness of the types referred to in clauses (a) through (f)
above of any partnership or joint venture (other than a joint venture that is
itself a corporation or limited liability company) in which such Person or a
Subsidiary is a general partner or joint venturer, unless such Indebtedness is
expressly made non-recourse to such Person or such Subsidiary."

                                       2
<PAGE>

         "Indebtedness" means, with respect to any Person at the time of any
determination (in each case determined in accordance with GAAP on a Consolidated
basis and without duplication), all obligations, contingent or otherwise, of
such Person which should be classified upon the balance sheet of such Person as
liabilities, but in any event including: (a) all obligations of such Person for
borrowed money; (b) all obligations of such Person upon which interest charges
are customarily paid or accrued; (c) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments; (d) all obligations of such
Person' under conditional sale or other title retention agreements relating to
property or assets purchased by such Person; (e) all obligations of such Person
issued or assumed as the deferred and unpaid purchase price of property or
services (excluding all accrued liabilities and all trade accounts payable
incurred in the ordinary course of business that are not past due and which are
classified as short term liabilities in accordance with GAAP); (f) all
obligations of others secured by (or having an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the obligations secured thereby have been assumed; (g)
all Guarantee Obligations by such Person of Indebtedness of others; (h) all
Capital Lease Obligations and Synthetic Lease Obligations of such Person; (i)
all obligations of such Person in respect of interest rate protection
agreements, foreign currency exchange agreements or other interest or exchange
rate hedging arrangements; (j) all obligations of such Person to purchase,
redeem, retire, defease or otherwise make any payment in respect of any Capital
Stock in such Person or any other Person; (k) all obligations of such Person,
actual or contingent, as an account party in respect of letters of credit or
similar facilities and bankers' acceptances; and (1) all obligations of any
partnership or joint venture as to which such Person is or may become personally
liable to the extent such obligations are deemed to be liabilities under GAAP.

         "Interest Expense" means, with respect to any Person and for any
specified period, the sum of the following of such Person and its Subsidiaries
for such period (in each case determined in accordance with GAAP on a
Consolidated basis and without duplication): (i) all interest paid, accrued or
scheduled to be paid in respect of any Funded Indebtedness (excluding original
issue discount); (ii) the portion of rent expense of such Person and its
Subsidiaries with respect to such period under conditional sale contracts,
Capital Leases, Synthetic Lease Obligations and other title retention agreements
that is treated as interest in accordance with GAAP; (iii) commissions,
discounts and other fees and charges with respect to letters of credit and
bankers' acceptance financings to the extent required by GAAP; and (iv) the
amount of net settlement obligations under interest rate protection agreements
respecting interest rate management and relating to the spread between the fixed
interest rate under such agreements and the floating interest rate hedged
thereby.

         "Senior Credit Facility" means that certain Credit Agreement, by and
among the Company, Bank of America, N.A., as Administrative Agent Swing Line
Lender and Letter of Credit Issuer, and the other lenders party thereto, dated
as of November 20, 2002, as the same may be amended, supplemented or otherwise
modified from time to time and any agreement or agreements renewing, replacing,
restating or refinancing all or any of the debt or commitments thereunder or any
notes or agreements otherwise evidencing any Senior Debt, but only in each case
to the extent the Indebtedness thereunder continues to constitute Senior Debt as
provided in the definition thereof.

                                       3
<PAGE>

         "Senior Debt" means all of the following: (a) the aggregate principal
indebtedness advanced from time to time under the Senior Credit Facility up to a
maximum aggregate principal amount that shall not exceed $60,000,000 (as reduced
by all payments and prepayments of principal outstanding under term loans made
under such Senior Credit Facility and by the permanent reduction of the
revolving credit facilities established under such Senior Credit Facility, (b)
all interest accrued and accruing on the aggregate principal outstanding under
the Senior Credit Facility from time to time (including, without limitation, any
interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding relating to
any Credit Party, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding); (c) all other reasonable fees or
monetary obligations owed under the Senior Credit Facility; and (d) all
reasonable costs incurred by the Senior Lenders under the Senior Credit Facility
in commencing or pursuing any enforcement action(s) with respect to the amounts
described in clauses (a) through (c), including attorneys' fees and
disbursements. "Senior Debt" shall also include all amendments, modifications,
renewals, replacements, restatements and refinancings of the foregoing, in whole
or in part, provided such amendments, modifications, renewals, replacements,
restatements or refinancings do not (i) increase the interest rate or default
rate payable on any component thereof by more than 2% over the interest rate or
default rate, respectively, that is applicable thereto on the date hereof, (ii)
extend the final maturity of the Senior Debt beyond August 1, 2006, (iii)
provide for any annual principal amortization payment in excess of the Permitted
Annual Amortization Amount, (iv) include additional financial covenants or amend
any of the financial covenants set forth in the Senior Credit Facility to render
such covenants more restrictive, other than additional financial covenants
identical to those set forth in Section 6.12 hereof that are no more than 15%
more restrictive as such financial covenants or (v) amend any provisions set
forth in the Senior Credit Facility which expressly permit the prepayment of the
Junior Debt to render such provisions more restrictive.

                  (c) The definition of "Borrower's Business" is hereby amended
to include the distribution and sale of propane fuel products of any type.

                  (d) The following new definitions are hereby added to Section
1.1 of the Investment Agreement in proper alphabetical order to read as follows:

         "Attributable Indebtedness" means, on any date, (a) in respect of any
Capital Lease of any Person, the capitalized amount thereof that would appear on
a balance sheet of such Person prepared as of such date in accordance with GAAP,
and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of
the remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a Capital Lease.

         "Consolidated Rental Expense" shall mean, for any period, for a Person
and its Subsidiaries on a consolidated basis, the operating lease expense of
such Person and its Subsidiaries determined in accordance with GAAP for leases
with an initial term greater than one year, as disclosed in the notes to the
consolidated financial statements of such Person and its Subsidiaries.

                                       4
<PAGE>

         "First Amendment" means the First Amendment to Investment Agreement
dated as of November __, 2002.

         "Maintenance Capital Expenditures" means, for any period, an amount
equal to: (a) depreciation expense for the Company and its Subsidiaries, on a
consolidated basis, during such period, multiplied by, (b) 0.50.

         "Non-Propane Products Divestiture" means one or more sales by UniFlame
Corporation and/or QuickShip, Inc., wholly-owned Subsidiaries of the Company, of
certain assets relating to their respective non-propane fueled products lines of
business.

         "Permitted Distributorship Acquisition" means the proposed purchase by
the Company and its Subsidiaries of approximately 10 of its independent
distributors for a total consideration of approximately $22,700,000 (plus an
amount of assumed liabilities and accruals not to exceed $10,000,000 in the
aggregate), of which approximately $19,000,000 will be made in the form of
common stock of the Company; provided that both before and after giving effect
to such acquisition (i) no Default or Event of Default has occurred and is
continuing and (ii) the Company shall have demonstrated pro forma compliance
with the financial covenants set forth in Section 6.12.

         "Synthetic Lease Obligation" means the monetary obligation of a Person
under (a) a so-called synthetic, off-balance sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations that
do not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

                  2. Closing Conditions. The obligations of Allied to enter into
this First Amendment and to perform its obligations hereunder are subject to the
satisfaction of the following conditions on or prior to the date hereof:

                  (a) The representations and warranties set forth herein shall
be true and correct on and as of the date hereof.

                  (b) The Credit Parties shall be in compliance with all the
terms and provisions set forth herein and in each other Investment Document on
their part to be observed or performed, and at the time of and immediately after
the date hereof, no Event of Default or Default or event or condition that,
after the giving of notice, passage of time, failure to cure or all of the
foregoing would constitute an Event of Default, shall have occurred and be
continuing.

                  (c) Allied shall have received the following items:

                           (i) this First Amendment, duly executed by the
Borrowers;

                           (ii) the Amended and Restated Debentures, duly
executed by the parties thereto, in form and substance satisfactory to Allied;

                           (iii) a copy of the Credit Agreement of even date
among the Company, Bank of America, N.A., as Administrative Agent Swing Line
Lender and Letter of Credit Issuer,

                                       5
<PAGE>

and the other lenders party thereto, dated as of November 20, 2002 (the "New
Credit Agreement"), duly executed by the parties thereto;

                           (iv) all fees and expenses due and payable under the
Investment Documents, as amended hereby, on or prior to the date hereof,
including without limitation, reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by the Borrowers under Section 7 of
this First Amendment; and

                           (v) such other documents, instruments and information
as Allied may reasonably request.

                  (d) All conditions to the effectiveness of the New Credit
Agreement, other than execution and delivery of this Amendment, shall be
satisfied in full and the New Credit Agreement shall be in full force and effect
upon and immediately after execution and delivery of this Amendment.

                  3. Amendments to Investment Agreement. The Original Investment
Agreement is hereby modified as follows:

                  (a) Section 4.27 of the Investment Agreement is hereby deleted
in its entirety and amended and restated as follows:

                           "SECTION 4.27. Insurance. The Company has made
available to Allied insurance certificates and accurate and complete copies of
the insurance binders or policies for all of the insurance maintained by the
Company or any of its Subsidiaries as listed on Schedule 4.27. The Company and
its Subsidiaries have insurance in such amounts and covering such risks and
liabilities as may be reasonable and prudent (after giving effect to any self
insurance in an amount not to exceed (a) $500,000 per each occurrence and (b)
$3,000,000 in the aggregate). Such insurance is in full force and effect and all
premiums have been duly paid."

                  (b) Section 6.2 of the Investment Agreement is hereby deleted
in its entirety and amended and restated as follows:

                           "SECTION 6.2. Insurance. Each of the Credit Parties
will keep its and each of its Subsidiaries' insurable properties adequately
insured at all times by financially sound and reputable insurers (after giving
effect to any self insurance in an amount not to exceed (a) $500,000 per each
occurrence and (b) $3,000,000 in the aggregate); maintain such other insurance
to such extent and against such risks as is reasonable and prudent and as may
otherwise be reasonably required by the Holders, including commercial general
liability insurance against claims for personal injury or death or property
damage occurring upon, in, about or in connection with the use of any properties
owned, occupied or controlled by it, hazard insurance and business interruption
insurance; and maintain such other insurance as may be required by law."

                  (c) Section 6.9 of the Investment Agreement is hereby deleted
in its entirety an amended and restated as follows:

                                       6
<PAGE>

                           "SECTION 6.9. Environmental Provisions. The Credit
Parties shall defend, indemnify and hold harmless the Holders, and their
respective parents, Subsidiaries, Affiliates, employees, agents, officers and
directors, from and against any claims, demands, penalties, dines liabilities,
settlements, damages, costs and expenses of whatever kind or nature, known or
unknown contingent or otherwise, arising out of, or in any way relating to the
presence of Hazardous Materials, or the violation of, noncompliance with or
liability under any Environmental Law: applicable to the operations of the
Credit Parties or their Subsidiaries, or any orders, requirements or demands of
Governmental Authorities related thereto, including, without limitation,
reasonable attorney's and consultant's fees, investigation and laboratory fees,
response costs, court costs and litigation expenses, except to the extent that
any of the foregoing directly result from the gross negligence or willful
misconduct of the party seeking indemnification therefor."

                  (d) Section 6.12(a) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(a) Funded Leverage Ratio. For the fiscal quarter
ending October 31, 2002 and for each fiscal quarter ending thereafter, a Funded
Leverage Ratio for the immediately preceding four (4) quarter period then ended
shall not be more than the ratio set forth below for such date:

--------------------------------------------------------------------------------
                    QUARTERS ENDING                        RATIO
--------------------------------------------------------------------------------
October 31, 2002 through April 30, 2003                 3.00 to 1.0
--------------------------------------------------------------------------------
July 31, 2003 and thereafter                            2.40 to 1.0
--------------------------------------------------------------------------------

                  (e) Section 6.12(b) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(b) Fixed Charge Coverage Ratio. For the fiscal
quarter ending October 31, 2002 and for each fiscal quarter ending thereafter, a
Fixed Charge Coverage Ratio for the immediately preceding four (4) quarter
period then ended shall not be less than 1.0 to 1.0."

                  (f) Sections 6.12(c) and (d) of the Investment Agreement are
hereby deleted in their entirety.

                  (g) Section 7.1(a)(xii) of the Investment Agreement is hereby
deleted in its entirety.

                  (h) Section 7.1(a)(xiii) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(xiii) Capital Lease Obligations, Synthetic Lease
Obligations and purchase money Indebtedness for equipment acquired in the
ordinary course of the Borrowers' Business incurred after the date of the First
Amendment not to exceed $1,000,000 in the aggregate outstanding at any time."

                                       7
<PAGE>

                  (i) Section 7.1 (a)(xv) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(xv) Indebtedness not otherwise permitted by the
foregoing paragraphs of this Section 7.1; provided that at the time or creation,
incurrence or assumption thereof and at any time thereafter, the aggregate
principal amount of such Indebtedness shall not exceed $1,000,000."

                  (j) Section 7.4(e) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(e) loans and advances, to employees in the ordinary
course of the business of such Credit Party and its Subsidiaries as presently
conducted in the aggregate amount of all such Investments under this clause (e)
not to exceed $500,000 at any one time outstanding;"

                  (k) Section 7.4(h) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(h) Investments in the R4 Technical Center; provided
that any such Investments made after the date hereof shall not exceed $1,000,000
in the aggregate.

                  (l) Section 7.4(j) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(j) additional Investments (other than additional
Investments in the R4 Technical Center which is exclusively provided for under
Section 7.4(h) above); provided that any such Investments made after the date
hereof shall not exceed $1,000,000 in the aggregate; and"

                  (m) Section 7.6(a) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(a) No Credit Party shall, nor permit any of its
Subsidiaries to, declare or pay any Restricted Payments (other than a dividend
or distribution of any shares of its common stock and dividends paid-in-kind to
preferred stockholders); provided, however, that, any Subsidiary of a Credit
Party may declare and pay a Restricted Payment to such Credit Party (and, in the
case of a Restricted Payment by a non-Wholly-Owned Subsidiary, to the Company
and any Subsidiary and to each other owner of Capital Stock or other equity
interests of such Subsidiary on a pro rata basis based on their relative
ownership interest). Notwithstanding anything herein to the contrary, but
subject to the provisions of Section 2.7, (i) the Company may redeem or
repurchase its Common Stock from officers, employees and directors of any Credit
Party (or their estates) upon the termination of employment of any such Person
or from service providers pursuant to equity incentive agreement or arrangements
upon termination of their services to the Company or pursuant to agreements
entered into to evidence grants or awards or other compensation under any stock
option plan, stock purchase plan, management incentive plan, consulting
agreement or other contract or arrangement approved by the Board; provided that
(A) no Default or Event of Default is then in existence or would otherwise arise
therefrom,

                                       8
<PAGE>

and (B) the aggregate amount of all cash paid in respect of all such shares so
redeemed or repurchased does not exceed $1,000,000 in any fiscal year of the
Company or $3,000,000 in the aggregate from and after the Closing Date, and (ii)
so long as no Default or Event of Default is then in existence or would
otherwise arise therefrom, the Credit Parties may make cash Restricted Payments
to the Company, if the Company promptly uses such proceeds for the purposes
described in clause (i) above."

                  (n) Section 7.10 of the Investment Agreement is hereby deleted
in its entirety and amended and restated as follows:

                           "Without the prior written consent of the Holders, no
Credit Party shall, nor permit its Subsidiaries to, acquire any Capital Stock or
assets of any Person (other than a Credit Party or a Subsidiary thereof or
pursuant to a Permitted Reorganization or a Permitted Distributorship
Acquisition) for aggregate consideration in excess of $2,000,000 per acquisition
or $10,000,000 in the aggregate for all such acquisitions occurring after the
Closing Date to which the Holders have not consented. To the extent that
consideration is paid, in whole or in part, in shares of the Company's Capital
Stock or securities convertible, exchangeable or exercisable into shares of the
Company's Capital Stock, such securities shall be valued in the same manner as
they are valued for such acquisition."

                  (o) Section 8.1(g) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(g) any default is declared or otherwise occurs
(after giving effect to any applicable notice and/or grace periods) under the
Senior Debt or any other Indebtedness of the Credit Parties in excess of
$1,000,000 (including the Senior Credit Facility), either (i) which is in the
payment of any amount due thereunder when and as the same becomes due and
payable or (ii) pursuant to which the lenders of such Indebtedness have
accelerated the maturity thereof;"

                  (p) Section 8.1(i) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(i) final non-appealable judgments for the payment
of money in excess of $1,000,000 individually or in the aggregate to the extent
not fully paid or discharged (excluding any portion thereof that is covered by
an insurance policy issued by an insurance company of recognized standing and
creditworthiness) is rendered against any Credit Party, and the same shall
remain undischarged for a period of 30 consecutive days during which execution
is not effectively stayed, or any action is legally taken by a judgment creditor
to levy upon assets or properties of any Credit Party to enforce any such
judgment; or"

                  (q) Section 8.1(j) of the Investment Agreement is hereby
deleted in its entirety and amended and restated as follows:

                           "(j) an ERISA Event occurs that in the opinion of the
Holders, when taken together with all other such ERISA Events, could reasonably
be expected to result in liability of any Credit Party and its ERISA Affiliates
in an aggregate amount exceeding $1,000,000;"

                                       9
<PAGE>

                  4. Representations and Warranties. To induce the Holders to
execute and deliver this First Amendment, the Company hereby reaffirms all
covenants, representations, and warranties made in the Investment Agreement and
the other Investment Documents to the extent the same are not amended hereby and
agree that all such covenants, representations, and warranties shall be deemed
to have been remade as of the date of this Amendment. Any such representations
and warranties made as of the Closing Date shall be made as of the date hereof.
Any default by the Company in its warranties and representations made in this
Amendment shall constitute an additional Event of Default under the Investment
Agreement, as amended hereby.

                  5. Joinder. Each of Blue Rhino Consumer Products, LLC and
Uniflame, LLC (the "New Credit Parties") hereby joins the Investment Agreement
and the Debentures as a joint and several obligor thereunder and party thereto,
subject to the terms and provisions thereof. Each New Credit Party hereby
unconditionally and expressly agrees to become, by execution and delivery of
this Agreement does become, and assumes, jointly and severally, each and every
one of the obligations of, a "Borrower" under and as defined in the Investment
Agreement and the Debentures. In addition, each New Credit Party makes each and
every representation and warranty of a Borrower set forth in the Investment
Agreement as of the date hereof except for those representations and warranties
that relate to a prior date. Without limitation of the foregoing or of anything
in the Investment Agreement or the Debentures, by such execution and delivery
hereof each New Credit Party does become fully, jointly and severally liable, as
a Borrower, for the payment of the Obligations as defined in the Investment
Agreement and the Debentures. As provided for in Section 7.8(a) of the
Investment Agreement, each New Credit Party joins as a Borrower under the
Investment Agreement as if such New Credit Party had been an original party to
the Investment Agreement and the Debentures. Each New Credit Party agrees to
cooperate with the Holders and execute such further instruments and documents as
the Holders shall reasonably request to effect, to the reasonable satisfaction
of the Holders, the purposes hereof.

                  6. Consent. The Holders hereby consent to the execution and
delivery of the New Credit Agreement and each of the Loan Documents (as defined
herein) by the Borrowers and acknowledge that the Indebtedness evidenced thereby
does not constitute a "Covered Financing" under Section 6.13. The Holders
further acknowledge that the execution and delivery thereof shall not constitute
a violation of Section 7.15 of the Investment Agreement. The parties hereto
understand and agree that this consent shall be effective only with respect to
the New Credit Agreement executed and delivered on the date hereof and only with
respect to Sections 6.13 and 7.15 of the Investment Agreement. This consent
shall not be deemed to constitute a consent to or waiver of any other term,
provision or condition of the Investment Agreement or to prejudice any right or
remedy that the Holders may now have or may have in the future under or in
connection with any of the Investment Documents.

                  7. Acknowledgments by the Borrowers. The Borrowers acknowledge
and agree with the Holders that as of the date hereof, the aggregate principal
amount of the Obligations owing by the Borrowers to Allied under the Investment
Agreement is $15,000,000, and all such Obligations are due and owing by the
Borrowers to Allied in accordance with the Investment Documents and without any
defense, deduction, offset, or counterclaim of any nature (all of which are
hereby waived).

                                       10
<PAGE>

                  8. Reference to and Effect Upon Investment Agreement. Each
reference in the Investment Agreement to "this Agreement," "hereunder,"
"hereof," or words of like import shall hereafter mean and be a reference to the
Investment Agreement, as amended hereby and from time to time. Each reference in
the Investment Agreement to the "Investment Documents" shall hereafter include
this First Amendment and mean and be a reference to the Investment Documents, as
amended hereby and from time to time. Except as specifically amended hereby, the
Investment Agreement, the other Investment Documents, and each and every term
and provision thereof shall remain in full force and effect and are hereby
ratified and confirmed. The execution, delivery, and effectiveness of this First
Amendment shall not operate as a waiver of any right, power, or remedy of Allied
under the Investment Agreement or the other Investment Documents or constitute a
waiver of any provision of the Investment Agreement or the other Investment
Documents.

                  9. Fees and Expenses of Allied. On or prior to the date
hereof, the Borrowers shall pay all reasonable fees and expenses incurred by
Allied in connection with the preparation, negotiation, execution, and delivery
of this First Amendment and any related documents, including, without
limitation, the reasonable fees and expenses of Allied's counsel and
out-of-pocket expenses.

                  10. Release. The Borrowers acknowledge that the Holders have
fulfilled all of its obligations under the Investment Agreement and hereby
release and forever discharge the Holders and their representatives, agents,
employees, attorneys, successors, directors, officers, parents, affiliates,
assigns, and subsidiaries (collectively the "Released Parties") of, to, and from
any and all claims, defenses, actions, causes of action, suits, controversies,
agreements, provisions, and demands in law or in equity, known or unknown
(collectively, the "Claims") which the Borrowers ever had, now have, or may have
arising from or relating to the Investment Documents, against or related to the
Released Parties, through the date of this First Amendment. The Borrowers agree
to assume the risk of any and all unknown, unanticipated or misunderstood claims
which are released hereby.

                  11. Miscellaneous.

                  (a) Entire Agreement; Integration Clause. This First Amendment
and the other Investment Documents set forth the entire agreements and
understandings of the parties hereto with respect to this transaction, and as
such supersede any prior agreements, whether written or oral, regarding the
matters described herein.

                  (b) No Oral Modification or Waivers. The terms herein may not
be modified or waived orally, but only by an instrument in writing signed by the
party against which enforcement of the modification or waiver (as the case may
be) is sought.

                  (c) Governing Law. This First Amendment is governed by, and
interpreted and construed in accordance with, the internal laws of the State of
Maryland (without regard to its conflicts of law principles).

                                       11
<PAGE>

                  (d) Headings. The headings of the paragraphs and
sub-paragraphs of this First Amendment are inserted for convenience only and
shall not be deemed to constitute a part of this First Amendment or the other
Investment Documents.

                  (e) Severability. To the extent any provision herein violates
any applicable law, that provision shall be considered void and the balance of
this First Amendment shall remain unchanged and in full force and effect.

                  (f) Counterparts. This First Amendment may be executed in as
many counterpart copies as may be required. It shall not be necessary that the
signature of, or on behalf of, each party appear on each counterpart, but it
shall be sufficient that the signature of, or on behalf of, each party appear on
one or more of the counterparts. All counterparts shall collectively constitute
a single agreement. It shall not be necessary in any proof of this First
Amendment to produce or account for more than a number of counterparts
containing the respective signatures of, or on behalf of, all of the parties.

                          (signatures begin next page)

                                       12
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed and delivered this
First Amendment as of the date first above written.

                            COMPANY:

                            BLUE RHINO CORPORATION

                            By:  /s/Mark Castaneda             (SEAL)
                                 ------------------------------------
                                     Name:    Mark Castaneda
                                     Title:  Executive Vice President and Chief
                                     Financial Officer

                            OTHER BORROWERS:

                            USA LEASING, L.L.C.
                            By:      Blue Rhino Corporation, as Manager

                            By:  /s/Mark Castaneda             (SEAL)
                                -------------------------------------
                                     Name:    Mark Castaneda
                                     Title:   Executive Vice President and Chief
                                     Financial Officer

                            RHINO SERVICES, L.L.C.
                            By:      Blue Rhino Corporation, as Manager

                            By:  /s/ Mark Castaneda            (SEAL)
                                 ------------------------------------
                                     Name:    Mark Castaneda
                                     Title:   Executive Vice President and Chief
                                     Financial Officer

                            CPD ASSOCIATES, INC.

                            By:  /s/ Mark Castaneda            (SEAL)
                                 ------------------------------------
                                     Name:    Mark Castaneda
                                     Title:   Vice President

                            QUICKSHIP, INC.

                            By:      /s/ Mark Castaneda                 (SEAL)
                               -----------------------------------------------
                                     Name: Mark Castaneda
                                     Title:  Assist. Secretary/Treasurer

            SIGNATURE PAGE TO FIRST AMENDMENT TO INVESTMENT AGREEMENT

                                       13
<PAGE>

                            UNIFLAME CORPORATION

                            By:  /s/ Kurt Gehsmann             (SEAL)
                                 ------------------------------------
                                     Name:    Kurt Gehsmann
                                     Title:   Vice President and Treasurer

                            BLUE RHINO CONSUMER PRODUCTS, LLC

                            By:      Blue Rhino Corporation, as Manager

                            By:  /s/ Mark Castaneda    (SEAL)
                                 ----------------------------
                                     Name:    Mark Castaneda
                                     Title:   Executive Vice President and Chief
                                              Financial Officer

                            UNIFLAME, LLC

                            By:      Blue Rhino Corporation, as Manager

                            By:  /s/ Mark Castaneda    (SEAL)
                                 ----------------------------
                                     Name:    Mark Castaneda
                                     Title:   Executive Vice President and Chief
                                     Financial Officer

                            ALLIED:

                            ALLIED CAPITAL CORPORATION

                            By:      /s/ Thomas H. Westbrook   (SEAL)
                               --------------------------------
                                     Name:  Thomas H. Westbrook
                                     Title:  Managing Director

            SIGNATURE PAGE TO FIRST AMENDMENT TO INVESTMENT AGREEMENT

                                       14

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