CONTRIBUTION AGREEMENT

 

                                                                     Exhibit 2.1

 

                             CONTRIBUTION AGREEMENT

 

     This  Contribution  Agreement  ("Agreement") is made and entered into as of

the 8th day of  February,  2004,  by and among FCI  Trading  Corp.,  a  Delaware

corporation ("Parent"),  Ferrellgas,  Inc., a Delaware corporation (the "General

Partner "),  Ferrellgas  Partners,  L.P., a Delaware  limited  partnership  (the

"Partnership")  and  Ferrellgas,  L.P.,  a  Delaware  limited  partnership  (the

"Operating Partnership").

 

     WHEREAS, the General Partner is the general partner of both the Partnership

and the Operating Partnership;

 

     WHEREAS, Ferrell Companies, Inc., a Kansas corporation ("Ultimate Parent"),

is the sole  stockholder  of  Parent  and  Parent  is the sole  member of Diesel

Acquisition LLC ("Merger Sub"); and

 

     WHEREAS, Parent, Merger Sub, Ultimate Parent and Blue Rhino Corporation,  a

Delaware  corporation (the "Company") have entered into an Agreement and Plan of

Merger  dated as of the date hereof (the  "Plan"),  pursuant to which Merger Sub

will merge with and into the Company with the Company being the surviving entity

(the "Surviving Entity") in the merger (the "Merger"), thereby becoming a direct

wholly-owned subsidiary of Parent;

 

     NOW,  THEREFORE,  in  consideration  of the  foregoing  and the  respective

representations,  warranties,  mutual covenants and agreements  herein contained

and intending to be legally bound hereby, the parties hereto agree as follows:

 

     1.  Deposit of Funds.  Prior to the  Closing,  as defined in the Plan,  the

Operating  Partnership  shall  deliver an amount equal to the  aggregate  Merger

Consideration payable to all holders of Company Common Stock, as both such terms

are defined in the Plan, as the Parent's designee for the delivery of such funds

as described in the Escrow Agreement, as such term is defined in the Plan.

 

     2. Post-Merger Transactions.  After the consummation of the Merger pursuant

to the terms of the Plan, the parties hereto shall take the following actions:

 

          (a) Parent shall have  converted  the Company into a Delaware  limited

     liability company (the "Converted Entity") and shall contribute

 

               (i) a portion of the membership interests in the Converted Entity

          ("Parent  Contribution"),  which  together  with  any  portion  of the

          membership  interests of the Converted Entity that were distributed to

          the Ultimate Parent,  contributed to the General Partner and are to be

          contributed by the General Partner to the Partnership or the Operating

          Partnership  to  maintain  the  General  Partner's  interest  in those

          partnerships as set forth in those partnerships respective partnership

          agreements,  shall  constitute all of the membership  interests of the

          Converted Entity; and

 

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               (ii) Parent's  obligation to pay the Merger  Consideration as set

          forth in Section 2.1(b) of the Plan and Parent's obligations under the

          paying agent agreement,  as described in the Plan  (collectively,  the

          "Assumed Debt"),  which  obligations are hereby assumed in full by the

          Partnership;

 

          (b) the Partnership  and the General  Partner shall  contribute all of

     the  membership   interests  of  the  Converted  Entity  to  the  Operating

     Partnership,  in accordance  with the terms of the Operating  Partnership's

     partnership  agreement,   and  the  Partnership  shall  contribute  to  the

     Operating Partnership the Assumed Debt, which obligations in respect of the

     Assumed Debt are hereby assumed in full by the Operating Partnership; and

 

          (c) the Operating  Partnership  shall cause the Converted Entity to be

     merged with and into the Operating  Partnership  by filing a Certificate of

     Ownership  and  Merger  with the  Secretary  of State  of  Delaware,  which

     certificate  shall be filed  with the  Secretary  of State of the  State of

     Delaware  immediately after the Effective Time (as defined in the Plan) but

     shall  not be  effective,  pursuant  to its terms  and in  accordance  with

     Delaware  law,  until no later than two business  days after the  Effective

     Time.

 

     3. Consideration for Parent  Contribution.  In consideration for the Parent

Contribution,  the Partnership  shall issue to Parent, on the date of the Parent

Contribution,  common  units  representing  limited  partner  interests  in  the

Partnership  ("Common Units") with a value equal to $8,704,815 less the value of

the  contribution  by the General  Partner to the  Partnership and the Operating

Partnership  in  connection  with the  issuance of Common  Units  pursuant to an

anticipated  public  offering of Common  Units and private  offerings  of Common

Units to be consummated prior to or simultaneously  with the consummation of the

transactions  contemplated under this Agreement, to be determined by the General

Partner.  The number of Common  Units to be issued to Parent  based on the prior

sentence  shall be  determined  by  dividing  such  value by the  average of the

closing  sales  prices of a Common Unit as  reported in the Wall Street  Journal

(Corporate  Transactions  section) for the twenty (20) consecutive  trading days

immediately prior to the date of issuance of such Common Units.

 

     4.  Purchase   Price   Allocation.   The  parties   acknowledge   that  the

consideration  to be received by the Partnership  and the Operating  Partnership

for the transactions  contemplated hereby shall be allocated,  as of the Closing

Date, among the assets and properties of the Converted Entity using the residual

method as specified under Section 1060 of the Code.

 

     5. Representations and Warranties. Each of the parties hereto represents to

the other  parties  hereto  that as of the date hereof and as of the date of the

issuance of the Common Units pursuant hereto:

 

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          (a) That party is duly incorporated or formed, validly existing and in

     good standing under the laws of the State of Delaware.  That party has full

     power and authority to own and hold the  properties  and assets it now owns

     and holds and to carry on its  businesses as and where such  properties are

     now owned or held and such  business is now  conducted.  That party is duly

     licensed or qualified to do business as a foreign  entity,  as  applicable,

     and are in good standing in each jurisdiction in which the character of the

     properties and assets now owned or held by it or the nature of the business

     now  conducted by it requires it to be so licensed or  qualified  and where

     the  failure  so to  qualify  would not  reasonably  be  expected  to have,

     individually or in the aggregate, an adverse change in or effect on (i) the

     business,  results of operations or condition  (financial or other) of such

     party,  or  (ii)  the  ability  of  such  party  to  consummate  any of the

     transactions  contemplated  hereby ("Material  Adverse Effect");  provided,

     however,  that a Material Adverse Effect shall not be deemed to include any

     effect of (x) actions or omissions of any party hereto taken with the prior

     written  consent  of  the  other  in   contemplation  of  the  transactions

     contemplated  hereby,  (y) the  direct  effects  of  compliance  with  this

     Agreement on the operating  performance of such party,  including  expenses

     incurred by such party in  consummating  the  transactions  contemplated by

     this  Agreement or relating to any  litigation  arising as a result of this

     Agreement or the  transactions  contemplated  hereby,  or (z) any change in

     general economic conditions,  except to the extent that such change affects

     such  party in a manner  materially  different  from the manner in which it

     affects other similar businesses.

 

          (b) This Agreement has been duly authorized, executed and delivered by

     that party and is the legal,  valid and binding  obligation  of that party,

     enforceable  against  it in  accordance  with  its  terms,  except  as such

     enforcement  may be  limited  by  bankruptcy,  insolvency,  reorganization,

     moratorium or other similar laws  affecting the  enforcement  of creditors'

     rights  generally.  The  governing  body of that  party has  approved  this

     Agreement and the transactions  contemplated  hereby.  No vote of any other

     equity holders of that party is required for approval of this Agreement.

 

          (c) Except for any filings  required to be made in connection with the

     Plan or as set forth herein,  the execution and delivery of this  Agreement

     do not, and the  fulfillment  and compliance  with the terms and conditions

     hereof and the  consummation of the transactions  contemplated  hereby will

     not (a)  conflict  with any of, or  require  the  consent  of any person or

     entity under, the terms,  conditions or provisions of the charter documents

     or bylaws or equivalent  governing  instruments of that party,  (b) violate

     any provision of, or require any consent,  authorization or approval under,

     any law or  administrative  regulation or any judicial,  administrative  or

     arbitration order, award,  judgment,  writ, injunction or decree applicable

     to such party,  (c)  conflict  with,  result in a breach of,  constitute  a

     default  under  (whether  with  notice  or the  lapse  of time or  both) or

     accelerate or permit the  acceleration of the  performance  required by, or

     require any consent,  authorization  or approval  under,  any Contract,  as

     defined in the Plan,  to which that party is a party or by which that party

     is bound or to which any asset of that party is  subject,  or (d) result in

     the creation of any lien, charge or encumbrance on the assets or properties

     of that party under any such Contract.

 

          (d) That party is not in default under,  and no condition  exists that

     with notice or lapse of time or both would  constitute a default under, (i)

     any mortgage, loan agreement,  indenture, evidence of indebtedness or other

     instrument  evidencing  borrowed money to which it or any of its properties

     are bound, (ii) any judgment,  order or injunction of any court, arbitrator

     or  governmental  agency,  or (iii) any  other  Contract,  except  for such

     defaults and conditions that,  individually or in the aggregate,  would not

     reasonably be expected to have a Material Adverse Effect.

 

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          (e) No party has entered  (directly or indirectly)  into any agreement

     with any person,  firm or corporation  that would obligate any party to pay

     any  commission,  brokerage  or  "finder's  fee"  in  connection  with  the

     transactions contemplated herein.

 

     6.  Representations  and  Warranties of the  Partnership.  The  Partnership

represents  to Parent that as of the date hereof and the date of issuance of the

Common Units pursuant hereto:

 

          (a) The  Common  Units to be issued  hereunder  and sold to Parent are

     duly authorized and, when issued and delivered  against payment therefor as

     provided  herein,  will be validly  issued,  fully paid and  non-assessable

     (except as  non-assessability  may be affected by certain provisions of the

     Delaware Revised Uniform Limited Partnership Act).

 

          (b) Since July 31,  2000,  (i) the  Partnership  has made all  filings

     required to be made by the Securities  Act and the Securities  Exchange Act

     of 1934, as amended  ("Exchange  Act"); (ii) all filings by the Partnership

     with the Securities and Exchange  Commission (the "SEC"), at the time filed

     (in the case of  documents  filed  pursuant  to the  Exchange  Act) or when

     declared  effective by the Securities and Exchange  Commission  (the "SEC")

     (in the case of  registration  statements  filed under the Securities  Act)

     complied in all material  respects with the applicable  requirements of the

     Securities  Act and the Exchange  Act;  (iii) no such  filing,  at the time

     described  above,  contained  any untrue  statement  of a material  fact or

     omitted to state any material  fact  required to be stated  therein to make

     the statements  contained therein,  in the light of the circumstances under

     which they were made,  not  misleading;  and (iv) all financial  statements

     contained or  incorporated  by reference  therein  complied as to form when

     filed or, if  applicable,  as restated,  in all material  respects with the

     rules and  regulations  of the SEC with respect  thereto,  were prepared in

     accordance  with United States  generally  accepted  accounting  principles

     applied on a consistent  basis  throughout the periods  involved (except as

     may be  indicated  in the  notes  thereto),  and  fairly  presented  in all

     material respects the financial  condition and results of operations of the

     Partnership  and  its  subsidiaries,  as  applicable,  at  and  as  of  the

     respective dates thereof and the consolidated results of its operations and

     changes in cash flows for the  periods  indicated  (subject  in the case of

     unaudited statements, to normal year-end audit adjustments).

 

     7.  Securities  Representations  and  Warranties  of Parent.  Parent hereby

represents and warrants to the Partnership and its representatives as follows as

of the date hereof and as of the date of issuance of the Common  Units  pursuant

hereto:

 

          (a)  Parent is an  "accredited  investor"  (as such term is defined in

     Rule 501 of Regulation D under the  Securities Act of 1933, as amended (the

     "Securities Act")).

 

          (b) Parent is not an "investment  company", as such term is defined in

     ss.3(a) of the  Investment  Company Act of 1940,  as amended,  or an entity

     which would be an "investment  company" but for the exception  provided for

     in ss.3(c)(1) or ss.3(c)(7) of such act.

 

          (c) The  purchase of the Common  Units by Parent is for  Parent's  own

     account, is for investment purposes only, and is not being made with a view

     to, nor for offer or sale in  connection  with,  the  distribution  of such

     Common Units and Parent is not participating, does not have a participation

     in and does not  contemplate any  participation  in, such a distribution or

     the underwriting of any such distribution.

 

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          (d) Parent has no present intention of selling or otherwise  disposing