diff --git a/CONTRIBUTORS b/CONTRIBUTORS
new file mode 100644
index 0000000..7f75ecd
--- /dev/null
+++ b/CONTRIBUTORS
@@ -0,0 +1,8 @@
+
+Originally by and Copyright (C) 2012 Rachid Belaid
+--------------------------------------------------
+
+... with contributions and inspiration from the community, including:
+
+Paul A. Prince <paul@littlebluetech.com> (2014)
+
diff --git a/setup.py b/setup.py
index 161dc5c..81cbe79 100755
--- a/setup.py
+++ b/setup.py
@@ -4,7 +4,7 @@
 
 setup(
     name='virtualenvwrapper.gem',
-    version='0.1',
+    version='0.2',
     description='Plugin for virtualenvwrapper to automatically '
                 'encapsulate inside the virtual environment'
                 'any gems installed when the venv is activated',
diff --git a/virtualenvwrapper/gem.py b/virtualenvwrapper/gem.py
index 44fb33e..10ac8c4 100755
--- a/virtualenvwrapper/gem.py
+++ b/virtualenvwrapper/gem.py
@@ -4,24 +4,72 @@
 
 log = logging.getLogger(__name__)
 
+
 def post_activate_source(args):
     return """
-#patch to wrap gems inside the virtual env
-export _OLD_GEM_HOME="$GEM_HOME"
-export _OLD_GEM_PATH="$GEM_PATH"
-export GEM_HOME="$VIRTUAL_ENV/lib/gems"
-export GEM_PATH=""
-PATH="$GEM_HOME/bin:$PATH"
-export PATH
+if [ -e "${VIRTUAL_ENV}/.gem" ]; then
 
-"""
+    if [ -n "${GEM_HOME+x}" ]; then
+        export _OLD_GEM_HOME="$GEM_HOME"
+    fi
+    export GEM_HOME=$VIRTUAL_ENV
+
+    if [ -n "${GEM_PATH+x}" ]; then
+        export _OLD_GEM_PATH="$GEM_PATH"
+    fi
+    export GEM_PATH=""
+
+    if [ -n "${BUNDLE_HOME+x}" ]; then
+        export _OLD_BUNDLE_HOME="$BUNDLE_HOME"
+    fi
+    export BUNDLE_HOME="$GEM_HOME"
+
+    if [ -n "${BUNDLE_BIN+x}" ]; then
+        export _OLD_BUNDLE_BIN="$BUNDLE_BIN"
+    fi
+    export BUNDLE_BIN="${GEM_HOME}/bin"
+
+fi
 
+"""
 
 
 def pre_deactivate_source(args):
     return  """
-#restore the value before entering the venv
-export GEM_HOME="$_OLD_GEM_HOME"
-export GEM_PATH="$GEM_PATH"
+if [ -e "${VIRTUAL_ENV}/.gem" ]; then
+
+    if [ -n "${_OLD_GEM_HOME+x}" ]; then
+        GEM_HOME="$_OLD_GEM_HOME"
+        export GEM_HOME
+        unset _OLD_GEM_HOME
+    else
+        unset GEM_HOME
+    fi
+
+    if [ -n "${_OLD_GEM_PATH+x}" ]; then
+        GEM_PATH="$_OLD_GEM_PATH"
+        export GEM_PATH
+        unset _OLD_GEM_PATH
+    else
+        unset GEM_PATH
+    fi
+
+    if [ -n "${_OLD_BUNDLE_HOME+x}" ]; then
+        BUNDLE_HOME="$_OLD_BUNDLE_HOME"
+        export BUNDLE_HOME
+        unset _OLD_BUNDLE_HOME
+    else
+        unset BUNDLE_HOME
+    fi
+
+    if [ -n "${_OLD_BUNDLE_BIN+x}" ]; then
+        BUNDLE_BIN="$_OLD_BUNDLE_BIN"
+        export BUNDLE_BIN
+        unset _OLD_BUNDLE_BIN
+    else
+        unset BUNDLE_BIN
+    fi
+
+fi
 
 """