Document:

CONTRIBUTION AGREEMENT

     This  Contribution  Agreement  (this  "AGREEMENT")  is  entered  into as of
January 1, 2000 by and  between  Intelligroup,  Inc.,  a New Jersey  corporation
("INTELLIGROUP"), and SeraNova, Inc., a New Jersey corporation ("SERANOVA").

                                   BACKGROUND

     WHEREAS, on September 9, 1999, Intelligroup formed SeraNova (formerly known
as Infinient, Inc.), for the purpose of operating independently a business which
provides strategic Internet consulting services, interactive Internet solutions,
application   management  services  and  management   consulting  services  then
conducted  by  Intelligroup,  Azimuth,  NetPub and  Intelligroup  India  Private
Limited  as  part  of  their  respective   business  operations  (the  "SERANOVA
BUSINESS");

     WHEREAS,  the Board of Directors of Intelligroup  has determined that it is
in the best  interests  of  Intelligroup  and its  shareholders  to separate the
SeraNova Business from the Intelligroup Group;

     WHEREAS, to implement such separation,  Intelligroup  desires to contribute
and transfer,  and SeraNova desires to accept and assume,  certain of the assets
and certain of the  liabilities  of  Intelligroup  that are  necessary to enable
SeraNova to conduct the SeraNova  Business (the  "CONTRIBUTION"),  as more fully
described in this Agreement and the Ancillary Agreements;

     WHEREAS in consideration for the Contribution,  Intelligroup  shall receive
an aggregate of nine hundred  (900) shares of the common  stock,  $.01 par value
per share, of SeraNova.

     WHEREAS the parties desire to set forth the principal transactions required
to effect  the  separation  of  SeraNova  from  Intelligroup  and to govern  the
relationship of SeraNova and Intelligroup following the Contribution.

     NOW, THEREFORE, the parties hereby agree as follows:

     1. DEFINITIONS.  For purposes of this Agreement,  the following terms shall
        -----------
have the following meanings:

        1.1 "ACTION" means any demand, action, suit,  countersuit,  arbitration,
inquiry,  proceeding or  investigation by or before any federal,  state,  local,
foreign or international  Governmental Authority or any arbitration or mediation
tribunal.

        1.2 "AFFILIATE"  of any  Person  means  any  Person  that  controls,  is
controlled by, or is under common control with such Person,  where control means
the  possession,  directly  or  indirectly  of the  power to direct or cause the
direction of the

<PAGE>

management  and  policies of such entity  whether  through  ownership  of voting
securities or other interests, by contract or otherwise.

        1.3 "ANCILLARY  AGREEMENTS"  means the agreements set forth on EXHIBIT A
                                                                       ---------
hereto.

        1.4 "ASSETS"  means assets,  property and rights  (including  goodwill),
wherever  located  (including  in the  possession  of  vendors  or  other  third
parties),  whether real, personal or fixed, tangible,  intangible or contingent,
in each case  whether or not recorded or reflected or required to be recorded or
reflected on the books and records or financial statements of any Person.

        1.5 "AZIMUTH" means Azimuth  Consulting  Limited,  a corporation  formed
pursuant  to  the  laws  of  New  Zealand  and  a  wholly-owned   subsidiary  of
Intelligroup,  Azimuth Corporation Limited, a corporation formed pursuant to the
laws of New Zealand  and a  wholly-owned  subsidiary  of  Intelligroup,  Azimuth
Holdings Limited, a corporation formed pursuant to the laws of New Zealand and a
wholly-owned  subsidiary  of  Intelligroup,   Braithwaite  Richmond  Limited,  a
corporation  formed  pursuant  to the  laws of New  Zealand  and a  wholly-owned
subsidiary of Intelligroup, and each Subsidiary of Azimuth.

        1.6 "CLOSING DATE" means the date of the Contribution.

        1.7  "CONTRACT"   means  any  written  or  oral   contract,   agreement,
commitment,  lease,  license,  consulting  agreement,  supply  contract,  repair
contract,  distribution  agreement,  purchase  order,  technology  and  know-how
agreement,  instrument,  or any other contractual  commitment that is binding on
any Person or its property.

        1.8  "DELAYED  TRANSFER  ASSETS"  means  any  SeraNova  Assets  that are
expressly  enumerated  in  this  Agreement  or  any  Ancillary  Agreement  to be
transferred after the Closing Date.

        1.9  "ENVIRONMENTAL  LAW" means any federal,  state,  local,  foreign or
international law (including tort and environmental  nuisance law),  regulation,
license,  permit, order,  judgment or agreement with any Governmental  Authority
relating  to health,  safety,  pollution  or the  environment  or to  emissions,
discharges  or releases of any  substance  currently or hereafter  designated as
hazardous, toxic, waste, radioactive or dangerous.

        1.10  "ENVIRONMENTAL  LIABILITIES"  means all  Liabilities  relating to,
arising out of or resulting from any  Environmental Law or contract or agreement
relating to environmental, health or safety matters.

        1.11 "GAAP" means generally accepted accounting  principles in effect in
the United States consistently applied throughout the periods involved.

                                      -2-
<PAGE>

        1.12 "GOVERNMENTAL  AUTHORITY" means any federal,  state, local, foreign
or international court, government,  commission, board, bureau, agency, official
or other regulatory, administrative or governmental authority.

        1.13 "GROUP" means either the SeraNova Group or the Intelligroup  Group,
as applicable.

        1.14  "INFORMATION"  means  information,  whether or not  patentable  or
copyrightable,  in written,  oral,  electronic  or other  tangible or intangible
forms,  stored  in any  medium,  including  studies,  reports,  records,  books,
contracts,   instruments,   surveys,  discoveries,  ideas,  concepts,  know-how,
techniques,  designs,  specifications,  drawings, blueprints,  diagrams, models,
prototypes,  samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs,  software,  marketing plans, customer names, communication by
or to attorneys (including attorney-client privileged communications), memos and
other  materials  prepared  by  attorneys  or under their  direction  (including
attorney  work  product) and other  technical,  financial,  employee or business
information or data.

        1.15 "INTELLIGROUP GROUP" means,  collectively,  Intelligroup,  and each
Subsidiary of Intelligroup and each other Person that is controlled  directly or
indirectly  by  Intelligroup  immediately  after  the  Closing  Date;  provided,
                                                                       --------
however,  that the  Intelligroup  Group  shall not  include  SeraNova,  Azimuth,
-------
NetPub, Intelligroup India Private Limited or any other Subsidiary of SeraNova.

        1.16  "INTELLIGROUP  INDIA PRIVATE  LIMITED"  means  Intelligroup  India
Private  Limited,  a  corporation  formed  pursuant  to the laws of India  and a
wholly-owned  subsidiary of  Intelligroup,  and each  subsidiary of Intelligroup
India Private Limited.

        1.17 "JOINT BANK FACILITY"  means any loan,  credit,  financing or other
similar agreement among a bank or other financial institution, any member of the
SeraNova Group and any member of the Intelligroup Group, with the members of the
SeraNova Group and the  Intelligroup  Group being  co-borrowers,  co-obligors or
guarantors, whether entered into prior to or after the Closing Date.

        1.18 "LIABILITIES"  means any and all losses,  claims,  charges,  debts,
demands, actions, causes of action, suits, damages, obligations, payments, costs
and  expenses,  sums  of  money,  accounts,   bonds,   indemnities  and  similar
obligations,  covenants, contracts,  agreements, promises, omissions, variances,
guarantees,   make  whole   agreements  and  similar   obligations,   and  other
liabilities,   including  all  contractual  obligations,   whether  absolute  or
contingent,  matured  or  unmatured,  liquidated  or  unliquidated,  accrued  or
unaccrued, known or unknown, whenever arising, and including those arising under
any law, rule regulation,  Action,  threatened or contemplated Action (including
the costs and  expenses  of demands,  assessments,  judgments,  settlements  and
compromises  relating  thereto  and  attorneys'  fees and any and all  costs and
expenses,   whatsoever  reasonably  incurred  in  investigating,   preparing  or
defending against any such Action or threatened or contemplated  Action),  order
or consent decree of any

                                      -3-
<PAGE>

Governmental  Authority or any award of any  arbitrator or mediator of any kind,
and those arising under any contract, commitment or undertaking, including those
arising under this Agreement or any Ancillary  Agreement,  in each case, whether
or not  recorded or  reflected  or required to be recorded or  reflected  on the
books and records or financial statements of any Person.

        1.19 "LIEN" means any mortgage, pledge, hypothecation,  right of others,
claim, security interest,  encumbrance,  lease, sublicense,  license,  occupancy
agreement, adverse claim or interest, easement, covenant, encroachment,  burden,
title defect right or title retention, voting trust agreement, interest, equity,
option,  lien,  right  of  first  refusal,   charge  or  other  restrictions  or
limitations  of  any  nature  whatsoever  (whether   consensual,   statutory  or
otherwise).

        1.20 "NETPUB" means Network  Publishing,  Inc., a Utah  corporation  and
wholly-owned subsidiary of Intelligroup.

        1.21 "PERMITTED  LIENS"  includes liens for taxes,  assessments or other
governmental  charges or levies not yet delinquent or which are being  contested
in good faith by appropriate action and as to which adequate reserves shall have
been set  aside in  conformity  with  GAAP;  liens  of  mechanics,  materialmen,
landlords, warehousemen, carriers and similar liens arising in the future in the
ordinary course of business for sums not yet  delinquent,  or being contested in
good faith if a reserve or other  appropriate  provision in accordance with GAAP
shall have been made therefor;  statutory  liens incurred in the ordinary course
of business in connection with workers'  compensation,  unemployment  insurance,
social security and similar items for sums not yet delinquent or being contested
in good faith,  if a reserve or other  appropriate  provision in accordance with
GAAP shall have been made therefor; lessor's liens arising from operating leases
entered into in the ordinary course of business; and consensual liens granted on
Assets contributed to SeraNova with respect to financing  obligations assumed by
SeraNova.

        1.22 "PERSON" means an individual,  a general or limited partnership,  a
corporation, a trust, a joint venture, an unincorporated organization, a limited
liability   corporation  or  entity,  any  other  entity  and  any  Governmental
Authority.

        1.23 "PROMISSORY  NOTE" shall mean Promissory Note dated the date hereof
issued by SeraNova to  Intelligroup,  in an aggregate  principal amount equal to
the intercompany debt set forth on EXHIBIT H hereto.
                                   ---------

        1.24 "SECURITY INTEREST" means any mortgage,  security interest, pledge,
lien,  charge,  claim,  option,  right to acquire,  voting or other restriction,
right-of-way,  covenant,  condition,  easement,  encroachment,   restriction  on
transfer or other encumbrance of any nature whatsoever.

        1.25  "SERANOVA  ASSETS"  means  the items  listed in  EXHIBIT B hereto.
                                                               ---------

                                      -4-
<PAGE>

        1.26 "SERANOVA  BALANCE SHEET" means the  consolidated  balance sheet of
the SeraNova Group as of September 30, 1999, a copy which is attached  hereto as
EXHIBIT C.
---------

        1.27 "SERANOVA BANK FACILITY" means any loan, credit, financing or other
similar agreement  between a bank or other financial  institution and any member
of the  SeraNova  Group,  as the  borrower or  obligor,  which any member of the
Intelligroup Group has guaranteed, whether prior to or after the Closing Date.

        1.28 "SERANOVA  CONTRACTS" means the contracts and agreements  assigned,
transferred  and  delivered  from  Intelligroup  to the SeraNova  Group to which
SeraNova  or any of its  Subsidiaries  is or  shall  be a  party  following  the
Contribution, which are listed or described in EXHIBIT D hereto.
                                               ---------

        1.29 "SERANOVA  GROUP" means  SeraNova,  each Subsidiary of SeraNova and
each  other  Person  that is  controlled  directly  or  indirectly  by  SeraNova
immediately after the Closing Date.

        1.30 "SERANOVA LIABILITIES" includes the Liabilities listed on EXHIBIT E
                                                                       ---------
hereto.

        1.31   "SUBSIDIARY"  of  any  Person  means  any  corporation  or  other
organization whether incorporated or unincorporated of which at least a majority
of securities or interest  having by the terms thereof  ordinary voting power to
elect at least a majority of the board of directors or others performing similar
functions with respect to such corporation or other  organization is directly or
indirectly  owned  or  controlled  by such  Person  or by any one or more of its
Subsidiaries,  or by such Person and one or more of its Subsidiaries;  provided,
                                                                       --------
however,  that no person that is not directly or indirectly  wholly owned by any
-------
other Person shall be a Subsidiary of such other Person unless such other Person
controls, or has the right, power and ability to control, that Person.

        1.32 "TAX SHARING AGREEMENT" means the Tax Sharing Agreement dated as of
the date hereof between Intelligroup and SeraNova.

        1.33 "Taxes" has the meaning set forth in the Tax Sharing Agreement.

     2. CONTRIBUTION.
        ------------

        2.1  TRANSFER OF ASSETS AND CONTRACTS; ASSUMPTION OF LIABILITIES RELATED
             -------------------------------------------------------------------
             TO CONDUCT OF SERANOVA BUSINESS.
             -------------------------------

             (a) Subject to the conditions  contained  herein, as of the Closing
Date, Intelligroup shall have contributed,  transferred,  conveyed and delivered
to the  SeraNova  Group,  and  the  SeraNova  Group  shall  have  accepted  from
Intelligroup,  all of Intelligroup's  right,  title and interest in the SeraNova
Assets,  including  the  intellectual  property  set forth on EXHIBIT B attached
                                                              ---------
hereto,  free and clear of all  Liens  (other  than

                                      -5-
<PAGE>

Permitted  Liens listed on EXHIBIT F attached  hereto) related to the conduct of
                           ---------
the SeraNova Business, other than any Delayed Transfer Assets.

             (b)  As of the  Closing Date, subject to  Section 3.1  Intelligroup

shall have assigned,  transferred and delivered to the SeraNova  Group,  and the
SeraNova  Group shall have accepted  from  Intelligroup,  all of  Intelligroup's
right,  title and interest in and to all SeraNova  Contracts  pertaining  to the
SeraNova  Business  as  identified  on EXHIBIT D hereto and the  SeraNova  Group
                                       ---------
hereby  accepts and agrees to perform and comply with the SeraNova  Contracts as
if an original signatory thereunder.

             (c)  The  SeraNova   Group  hereby  assumes  only  those   SeraNova
Liabilities  listed on EXHIBIT E attached  hereto  related to the conduct of the
                       ---------
SeraNova  Business,  in accordance with their  respective  terms.  Except as set
forth on EXHIBIT E, the SeraNova Group shall not otherwise  acquire,  discharge,
         ---------
assume or become  responsible for any Liabilities of Intelligroup.  Intelligroup
agrees  to pay and  satisfy  when  due the  Liabilities  not  expressly  assumed
hereunder by the SeraNova Group.

             (d)   Upon  the  execution  hereof,  Intelligroup  hereby grants to
SeraNova a  non-exclusive,  royalty  free,  fully  paid,  irrevocable  right and
license  to sell,  assign,  copy,  distribute,  sub-license,  use and  otherwise
commercially  exploit the  intellectual  property  rights set forth on EXHIBIT G
                                                                       ---------
hereto (the "Licensed Intellectual  Property").  Such license includes the right
to  modify  and  enhance  the  Licensed  Intellectual  Property  and to own such
modifications  and  enhancements,  including all  intellectual  property related
thereto.

        2.2  TRANSFER OF SERANOVA ASSETS  CONSISTING  OF STOCK  OR OTHER  EQUITY
             -------------------------------------------------------------------
             INTERESTS.
             ----------

             (a)  To  the  extent that any of the  SeraNova  Assets  consists of
shares of stock of any corporate entity  (collectively,  the "Stock"),  upon the
execution  hereof,  the  certificates  representing  the Stock, if any, shall be
delivered to SeraNova,  duly endorsed in blank,  or  accompanied by stock powers
duly  executed  in blank,  with all  necessary  transfer  tax and other  revenue
stamps,  acquired  at  the  expense  of  Intelligroup,   affixed  and  canceled.
Intelligroup  agrees to cure any deficiencies with respect to the endorsement of
the certificates representing the Stock owned by Intelligroup or with respect to
the stock power accompanying any such certificates.

             (b)  To  the extent  that  any  of  SeraNova   Assets  consists  of
uncertificated  securities,  Intelligroup agrees to make such ledger entries, or
instruct  appropriate agents or government agencies to make such entries, and to
otherwise   take  such  steps  as   reasonably   necessary   to  transfer   such
uncertificated securities to SeraNova,  including without limitation the payment
of any transfer fees or taxes.

        2.3  ADJUSTMENT OF ASSETS AND  LIABILITIES.  The parties acknowledge and
             -------------------------------------
agree that the  information  set forth in the  Exhibits  and  Schedules  hereto,
including

                                      -6-
<PAGE>

the SeraNova Balance Sheet, is as of September 30, 1999. No later than March 31,
2000, the parties shall appropriately adjust and amend the information set forth
on the Exhibits and Schedules  hereto as of December 31, 1999. Such  adjustments
and amendments  shall be made to reflect the closing of the respective  books of
the parties (and their respective  Subsidiaries)  and the preparation of audited
financial statements for each of parties for the year ended December 31, 1999.

        2.4  DELAYED TRANSFER ASSETS. Each of the parties hereto agrees that the
             -----------------------
Delayed Transfer Assets will be contributed, transferred, conveyed and delivered
in  accordance  with the terms of any and all  agreements  that provide for such
contribution, transfer, conveyance and delivery after the date of this Agreement
or as  otherwise  set  forth  on  SCHEDULE  2.4.  Following  such  contribution,
                                  -------------
transfer,  conveyance and delivery of any Delayed  Transfer Asset the applicable
Delayed  Transfer  Asset shall be treated for all purposes of this Agreement and
the Ancillary  Agreements as a SeraNova  Asset.  Each  applicable  member of the
Intelligroup  Group shall use commercially  reasonable  efforts to safeguard and
preserve the Delayed  Transfer  Assets until the applicable  date of transfer to
SeraNova, normal wear and tear excepted.

        2.5  HOLDING ASSETS IN TRUST. In the event that at any time or from time
             -----------------------
to time (whether prior to or after the Closing  Date),  any party hereto (or any
member of such party's respective Group), shall receive or otherwise possess any
Asset that is allocated to any other  Person  pursuant to this  Agreement or any
Ancillary  Agreement,  including,  but not limited to,  accounts  receivable and
other  cash  payments,  such  party  shall  promptly  transfer,  or  cause to be
transferred,  such Asset to the Person so  entitled  thereto.  Prior to any such
transfer, the Person receiving or possessing such Asset shall hold such Asset in
trust for such other Person.

        2.6  TERMINATION OF AGREEMENTS.
             -------------------------

           (a)  Except for the  Ancillary  Agreements,  SeraNova,  on  behalf of
itself and each member of the SeraNova Group, on the one hand, and Intelligroup,
on behalf of itself  and each  member of the  Intelligroup  Group,  on the other
hand,  hereby  terminates  effective  as  of  the  Closing  Date,  any  and  all
agreements,  arrangements,  commitments  or  understandings,  whether  or not in
writing, between or among any member of the SeraNova Group, on the one hand, and
any member of the Intelligroup Group, on the other hand;  provided,  however, to
the extent any such  agreement,  arrangement,  commitment  or  understanding  is
inconsistent with any Ancillary  Agreement,  such termination shall be effective
as of the date of effectiveness of the applicable Ancillary  Agreement.  No such
terminated agreement,  arrangement,  commitment or understanding  (including any
provision thereof which purports to survive termination) shall be of any further
force or effect  after the Closing Date (or, to the extent  contemplated  by the
proviso to the immediately  preceding sentence,  after the effective date of the
applicable Ancillary Agreement).  Each party shall, at the reasonable request of
any other  party,  take,  or cause to be taken,  such  other  actions  as may be
necessary to effect the foregoing.

                                      -7-
<PAGE>

             (b) The provisions of Section  2.6(a) shall not apply to any of the
following agreements, arrangements,  commitments or understandings (or to any of
the provisions  thereof):  (i) this Agreement and the Ancillary  Agreements (and
each other agreement or instrument  expressly  contemplated by this Agreement or
any Ancillary  Agreement to be entered into by any member of the SeraNova  Group
or the Intelligroup  Group); (ii) any agreements,  arrangements,  commitments or
understandings  to which any  Person  other  than the  parties  hereto and their
respective  Affiliates is a party (it being  understood  that to the extent that
the  rights  and  obligations  of the  members  of  the  SeraNova  Group  or the
Intelligroup  Group  under any such  agreements,  arrangements,  commitments  or
understandings constitute SeraNova Assets or SeraNova Liabilities, they shall be
assigned  pursuant  to the  other  provisions  of this  Section  2);  (iii)  any
intercompany  accounts payable or accounts  receivable accrued as of the Closing
Date that are  reflected  in the books and records of the  parties or  otherwise
documented in writing in accordance  with past  practices;  (iv) any written Tax
sharing  or Tax  allocation  agreements  to which  any  member of any Group is a
party; and (v) any other agreements, arrangements, commitments or understandings
that this  Agreement or any  Ancillary  Agreement  expressly  contemplates  will
survive the Closing Date.

        2.7  DOCUMENTS RELATING  TO  TRANSFER OF  REAL  PROPERTY  INTERESTS  AND
             -------------------------------------------------------------------
TANGIBLE PROPERTY LOCATED THEREON. In furtherance of the contribution, transfer,
---------------------------------
conveyance  and delivery of the SeraNova  Assets and the  assumption of SeraNova
Liabilities  set forth in Section 2.1,  simultaneously  with the  execution  and
delivery of this  Agreement or as promptly as  practicable  thereafter,  each of
Intelligroup  and SeraNova or their applicable  Subsidiaries,  shall execute and
deliver lease assignments and assumptions,  leases,  subleases and sub-subleases
with  respect to the  properties  set forth on SCHEDULE 2.7 with such changes as
                                               ------------
may be necessary to conform to any laws,  regulations or usage applicable in the
jurisdiction in which the relevant real property is located.

        2.8  DOCUMENTS RELATING TO OTHER  TRANSFERS OF ASSETS AND  ASSUMPTION OF
             -------------------------------------------------------------------
LIABILITIES.  In  furtherance  of the  contribution,  transfer,  conveyance  and
-----------
delivery of the SeraNova  Assets and the assumption of SeraNova  Liabilities set
forth in Section 2.1, as promptly as practicable  after each such transfer:  (i)
Intelligroup  shall  execute and deliver,  and shall cause its  Subsidiaries  to
execute and deliver,  such bills of sale,  stock powers,  certificates of title,
assignments  of contracts  and other  instruments  of transfer,  conveyance  and
assignment as and to the extent  necessary to evidence the transfer,  conveyance
and assignment of all of Intelligroup's  and its Subsidiaries'  right, title and
interest in and to the  SeraNova  Assets to SeraNova and its  Subsidiaries;  and
(ii) SeraNova  shall execute and deliver,  and shall cause its  Subsidiaries  to
execute and deliver to  Intelligroup  and its  Subsidiaries  such bills of sale,
stock  powers,  certificates  of  title,  assumptions  of  contracts  and  other
instruments  of assumption as and to the extent  necessary to evidence the valid
and  effective  assumption  of the  SeraNova  Liabilities  by  SeraNova  and its
Subsidiaries.

        2.9  ANCILLARY  AGREEMENTS.  Prior to the Closing Date, Intelligroup and
             ---------------------
SeraNova  will  execute and deliver all  Ancillary  Agreements  to which it is a
party.

                                      -8-
<PAGE>

        2.10  FINANCING ARRANGEMENTS.  On a case-by-case basis, Intelligroup and
              ----------------------
SeraNova  may agree to enter  into a Joint  Bank  Facility  or a  SeraNova  Bank
Facility  with  respect to  operations  of the  SeraNova  Business  in  specific
jurisdictions.  In such event,  Intelligroup and SeraNova agree to take all such
reasonable  action as may be necessary to permit the  applicable  members of the
Intelligroup  Group or the  SeraNova  Group to borrow such amount as is mutually
agreed.  Intelligroup  and SeraNova shall  participate in the preparation of all
materials and  presentations  as may be reasonably  necessary to secure  funding
pursuant to a Joint Bank Facility or a SeraNova Bank Facility,  including rating
agency presentations  necessary to obtain the requisite ratings needed to secure
the financing.  SeraNova shall pay (or reimburse  Intelligroup for) all expenses
associated with any SeraNova Bank Facility.

        2.11  OTHER  GUARANTEES.  On a case-by-case  basis,  Intelligroup  shall
              -----------------
consider in good faith any request by SeraNova to have Intelligroup or any other
member of the  Intelligroup  Group provide a contractual  guaranty of a lease or
other contractual obligation of any member of the SeraNova Group. SeraNova shall
use its best good faith  efforts to arrange  for the release  and  discharge  of
Intelligroup  and any  other  member  of the  Intelligroup  Group  of all of its
obligations  under any such  guaranty as soon as possible,  consistent  with the
smooth transition of the SeraNova Business to SeraNova.  SeraNova shall take all
reasonable  steps necessary to arrange for the complete release and discharge of
Intelligroup  and any  other  member  of the  Intelligroup  Group  of all of its
obligations  under  any such  guaranty,  in no  event  later  than the  spin-off
transaction  contemplated by that certain Distribution  Agreement by and between
Intelligroup and SeraNova of even date herewith.

        2.12  GOVERNMENTAL APPROVALS AND CONSENTS.
              -----------------------------------

              (a)  To the extent that the Contribution requires any Governmental
Authority  approvals  or  consents,  the  parties  will use  their  commercially
reasonable efforts to obtain any such approvals and consents.

              (b)  If and to the extent that the valid,  complete and  perfected
transfer or conveyance to the SeraNova  Group of any SeraNova  Assets would be a
violation  of  applicable   laws  or  require  any  consent  or  approval  of  a
Governmental  Authority  in  connection  with  the  Contribution,  then,  unless
Intelligroup  shall  otherwise  determine,  the  transfer or  conveyance  to the
SeraNova Group of such SeraNova  Assets shall be  automatically  deemed deferred
and any such purported  transfer or assignment shall be null and void until such
time as all legal impediments are removed and/or such consents or approvals have
been obtained.

              (c)  If the  transfer or  assignment  of any Asset  intended to be
transferred or conveyed  hereunder is not consummated prior to or at the Closing
Date, then the Person  retaining such Asset shall thereafter hold such Asset for
its use and  benefit,  insofar as  reasonably  possible,  at the  expense of the
Person entitled thereto. In addition, the Person retaining such Asset shall take
such other  actions as may be  reasonably  requested  by the Person to whom such
Asset is to be transferred in order to

                                      -9-
<PAGE>

 place such Person,  insofar as reasonably
possible,  in the  same  position  as if such  Asset  had  been  transferred  as
contemplated  hereby and so that all the benefits  and burdens  relating to such
SeraNova Assets,  including  possession,  use, risk of loss, potential for gain,
and dominion,  control and command over such Assets, are to inure from and after
the Closing Date to the SeraNova Group.

              (d)  If and when  the  consents  or  approvals  of a  Governmental
Authority,  the absence of which  caused the  deferral of transfer of any Asset,
are  obtained,  the  transfer  of the  applicable  Asset  shall be  effected  in
accordance  with  the  terms  of  this  Agreement  or the  applicable  Ancillary
Agreement.

        2.13  NOVATION OF ASSUMED SERANOVA LIABILITIES.
              ----------------------------------------

              (a)  Each of  Intelligroup  and  SeraNova,  at the  request of the
other,  shall use its commercially  reasonable efforts to obtain, or to cause to
be obtained, any consent, substitution, approval or amendment required to novate
(including  with  respect  to any  federal  government  contract)  or assign all
obligations  under  agreements,   leases,  licenses  and  other  obligations  or
Liabilities of any nature whatsoever that constitute SeraNova Liabilities, or to
obtain in writing the unconditional  release of all parties to such arrangements
other than any member of the SeraNova Group, so that, in any such case, SeraNova
and its Subsidiaries will be solely responsible for such Liabilities;  provided,
however,  that no member of the Intelligroup Group or the SeraNova Group, as the
case may be, shall be obligated to pay any  consideration  therefor to any third
party from whom such  consents,  approvals,  substitutions  and  amendments  are
requested.  Without limiting the foregoing,  Intelligroup and SeraNova shall use
their commercially  reasonable  efforts to obtain,  prior to the Closing Date, a
release of any and all  guarantees  provided  by any member of the  Intelligroup
Group in  connection  with the SeraNova  Contracts,  SeraNova  Assets,  SeraNova
Liabilities and the SeraNova Business.

              (b)  If Intelligroup or SeraNova is unable to obtain,  or to cause
to be obtained, any such required consent,  approval,  release,  substitution or
amendment,  the applicable member of the Intelligroup Group shall continue to be
bound by such agreements, leases, licenses and other obligations and, unless not
permitted by law or the terms thereof, SeraNova shall, as agent or subcontractor
for  Intelligroup  or such other  Person,  as the case may be, pay,  perform and
discharge fully all the obligations or other Liabilities of Intelligroup or such
other  Person,  as the case may be,  thereunder  from and after the date hereof.
SeraNova  shall  indemnify each  Intelligroup  Indemnitee (as defined in Section
4.1),  and  hold  each of them  harmless  against  any  Liabilities  arising  in
connection  therewith.  If  and  when  any  such  consent,  approval,   release,
substitution or amendment is obtained or such agreement, lease, license or other
rights  or  obligations  otherwise  becomes  assignable  or able to be  novated,
Intelligroup shall thereafter  assign, or cause to be assigned,  all its rights,
obligations and other Liabilities thereunder or any rights or obligations of any
member  of  its  respective   Group  to  SeraNova  without  payment  of  further
consideration   and  SeraNova   shall,   without  the  payment  of  any  further
consideration, assume such rights and obligations.

                                      -10-
<PAGE>

         2.14 INTERCOMPANY DEBT.  Intelligroup  and SeraNova  agree that, as a
              -----------------
result of the transactions  contemplated  hereby,  SeraNova shall be indebted to
Intelligroup  as set forth on  EXHIBIT H. Such debt  shall be  evidenced  by the
                               ---------
Promissory Note.

     3.  REPRESENTATIONS AND WARRANTIES.
         ------------------------------

         3.1  REPRESENTATIONS AND WARRANTIES OF INTELLIGROUP.
              ----------------------------------------------

         Intelligroup  represents and warrants to SeraNova and its  Subsidiaries
as follows:

              (a) CORPORATE POWER AND AUTHORITY.  Intelligroup has the requisite
                  -----------------------------
power and authority to execute,  deliver, and perform its obligations under this
Agreement,  any  applicable  Ancillary  Agreement and to  contribute,  transfer,
convey and deliver to SeraNova and its  Subsidiaries  the SeraNova  Assets.  The
execution,  delivery and  performance of this Agreement and the  consummation of
the transactions  contemplated hereby have been duly authorized by all necessary
action  (corporate  or otherwise) on the part of  Intelligroup.  This  Agreement
constitutes the legal, valid and binding obligation of Intelligroup, enforceable
in  accordance  with its  terms,  except as such  enforcement  may be limited by
applicable  bankruptcy,  insolvency,  moratorium  or similar laws  affecting the
enforcement of creditors' rights generally.

              (b) VALIDITY OF CONTEMPLATED TRANSACTIONS. The execution, delivery
                  -------------------------------------
and  performance  of this  Agreement and the  consummation  of the  transactions
contemplated  hereby do not and will not: (i) violate,  breach or contravene any
of the terms,  conditions or provisions of the Certificate of  Incorporation  or
By-laws (or the equivalent thereof) of Intelligroup; (ii) violate, or constitute
a default under, any material Contract by which  Intelligroup or its property is
bound; or (iii) violate any material provision of law.

              (c) TITLE TO CONTRIBUTED ASSETS.  Intelligroup is in possession of
                  ---------------------------
and has good, valid and marketable title to, or has valid leasehold interests in
or valid  rights under  contract to use, all of the SeraNova  Assets in which it
has an interest and Intelligroup  has such title,  interests or rights to all of
the  SeraNova  Assets that are being  contributed  by  Intelligroup.  All of the
SeraNova Assets are free and clear of all Liens, other than Permitted Liens. All
tangible personal  property  comprising the SeraNova Assets is in good operating
condition  (ordinary  wear and tear excepted) and will be usable by SeraNova and
its Subsidiaries for its intended purposes.

              (d) ACCOUNTS RECEIVABLE. The accounts receivable that are included
                  -------------------
in the SeraNova Assets (the "Accounts Receivable") constitute valid receivables,
have arisen in the ordinary  course of business  consistent with past practices.
No part of the Accounts  Receivable is contingent upon performance by any member
of the Intelligroup Group, as applicable,  or any other party of any obligation,
and no agreements for deductions or discounts have been made with respect to any
part of such Accounts Receivable.

                                      -11-
<PAGE>

              (e) BUSINESS.  Upon consummation of this Agreement, SeraNova shall
                  --------
be the sole and exclusive  owner of the SeraNova  Business,  the SeraNova Assets
received  by  SeraNova  from  Intelligroup  are all of the assets  necessary  to
operate the SeraNova Business.

              (f) REQUIRED CONSENTS.  Intelligroup,  SeraNova and the applicable
                  -----------------
member or members of their  respective  Group shall use their or its  reasonable
best efforts to obtain all necessary  consents from applicable  third parties in
order to assign,  transfer and deliver the SeraNova Contracts unless the failure
to obtain one or more  consents  would not be material and except for  contracts
under which  Intelligroup has a right to subcontract  without the consent of the
other party or parties to the contract.

              (g) SERANOVA  BALANCE SHEET.  The SeraNova Balance Sheet set forth
                  -----------------------
on EXHIBIT C is true and accurate in all material respects.
   ---------

        3.2   REPRESENTATIONS AND WARRANTIES OF THE SERANOVA GROUP.
              ----------------------------------------------------

        SeraNova and its  Subsidiaries  represent and warrant to Intelligroup as
follows:

              (a)  CORPORATE POWER AND AUTHORITY.  SeraNova and its Subsidiaries
                   -----------------------------
have the  requisite  power and  authority  to execute,  deliver and perform this
Agreement,  the  Ancillary  Agreements  and to accept the SeraNova  Assets.  The
execution,  delivery and  performance of this Agreement and the  consummation of
the transactions  contemplated hereby have been duly authorized by all necessary
action  (corporate or  otherwise) on the part of SeraNova and its  Subsidiaries.
This Agreement  constitutes the legal,  valid and binding obligation of SeraNova
and its Subsidiaries,  enforceable in accordance with its terms,  except as such
enforcement may be limited by applicable bankruptcy,  insolvency,  moratorium or
similar laws affecting the enforcement of creditors' rights generally.

              (b) VALIDITY OF CONTEMPLATED TRANSACTIONS. The execution, delivery
                  -------------------------------------
and  performance  of this  Agreement and the  consummation  of the  transactions
contemplated  hereby do not and will not: (i) violate,  breach or contravene any
of the terms,  conditions  or  provisions  of the  Certificate  or  Articles  of
Incorporation  or  By-laws  (or the  equivalent  thereof)  of  SeraNova  and its
Subsidiaries; (ii) violate, or constitute a default under, any material Contract
by which such entity or its  property is bound;  or (iii)  violate any  material
provision of law.

     4. INDEMNIFICATION.
        ---------------

        4.1   INDEMNIFICATION BY SERANOVA.  Subject to the provisions of Section
              ---------------------------
4.3,  SeraNova  shall  indemnify,  defend and hold  harmless  each member of the
Intelligroup  Group  and  each  of  their  respective  directors,  officers  and
employees, and

                                      -12-
<PAGE>

each of the heirs,  executors,  successors  and assigns of any of the  foregoing
(collectively,  the  "INTELLIGROUP  INDEMNITEES")  from and  against any and all
Liabilities  of the  Intelligroup  Indemnitees,  relating to,  arising out of or
resulting from any of the following items:

                  (a) the  failure of any member of the  SeraNova  Group to pay,
perform or otherwise promptly discharge any SeraNova Liabilities or any SeraNova
Contract in accordance with their respective terms, after the Closing Date;

                  (b)  the  employment  or  termination  of  employment  of  any
employee of Intelligroup working in the SeraNova Business;

                  (c) conduct of the SeraNova  Business  after the Closing Date;
and

                  (d) any  breach by any  member of the  SeraNova  Group of this
Agreement or any of the Ancillary Agreements.

            4.2   INDEMNIFICATION BY INTELLIGROUP.  Subject to the provisions of
                  -------------------------------
Section 4.3,  Intelligroup  shall indemnify,  defend and hold harmless SeraNova,
each  member  of the  SeraNova  Group  and each of their  respective  directors,
officers and employees, and each of the heirs, executors, successors and assigns
of any of the foregoing  (collectively,  the "SERANOVA  INDEMNITEES"),  from and
against any and all Liabilities of the SeraNova Indemnitees relating to, arising
out of or resulting from any of the following items:

                  (a) the failure of Intelligroup  to pay,  perform or otherwise
promptly  discharge any Liabilities of  Intelligroup,  whether prior to or after
the Closing Date;

                  (b) the failure of Intelligroup  to pay,  perform or otherwise
promptly  discharge  any  SeraNova  Liabilities  or  any  SeraNova  Contract  in
accordance with their respective terms, prior to the Closing Date;

                  (c)  conduct of the  SeraNova  Business  prior to the  Closing
Date; and

                  (d) any breach by Intelligroup of this Agreement or any of the
Ancillary Agreements.

            4.3   INDEMNIFICATION  OBLIGATIONS  NET OF  INSURANCE  PROCEEDS  AND
                  --------------------------------------------------------------
OTHER AMOUNTS.
-------------

                  (a)  The  parties   intend  that  any  Liability   subject  to
indemnification  or  reimbursement  pursuant  to this  Section  4 will be net of
insurance  proceeds.  Accordingly,  the amount which any party (an "INDEMNIFYING
PARTY") is required to pay to any Person entitled to  indemnification  hereunder
(an "INDEMNITEE")

                                      -13-
<PAGE>

will be reduced by any insurance proceeds  theretofore  actually recovered by or
on behalf  of the  Indemnitee  in  reduction  of the  related  Liability.  If an
Indemnitee  receives  a  payment  (an  "INDEMNITY  PAYMENT")  required  by  this
Agreement  from  an   Indemnifying   Party  in  respect  of  any  Liability  and
subsequently  receives insurance  proceeds,  then the Indemnitee will pay to the
Indemnifying  Party an amount equal to the Indemnity  Payment  received less the
amount of the  Indemnity  Payment  that  would  have  been due if the  insurance
proceeds had been received,  realized or recovered before the Indemnity  Payment
was made.

                  (b) An insurer who would  otherwise  be  obligated  to pay any
claim shall not be  relieved  of the  responsibility  with  respect  thereto or,
solely by virtue of the indemnification  provisions hereof, have any subrogation
rights with respect  thereto,  it being expressly  understood and agreed that no
insurer or any other third party shall be  entitled  to a  "windfall"  (i.e.,  a
benefit   they  would  not  be  entitled  to  receive  in  the  absence  of  the
indemnification  provisions) by virtue of the indemnification provisions hereof.
Nothing  contained in this Agreement or any Ancillary  Agreement  shall obligate
any member of any Group to seek to collect or recover any insurance proceeds.

            4.4   PROCEDURES FOR INDEMNIFICATION OF THIRD PARTY CLAIMS.
                  ----------------------------------------------------

                  (a) If an Indemnitee  shall receive notice or otherwise  learn
of the assertion by a Person (including any Governmental Authority) who is not a
member of the  Intelligroup  Group or the SeraNova  Group of any claim or of the
commencement  by any such  Person of any Action  (collectively,  a "THIRD  PARTY
CLAIM") with respect to which an Indemnifying  Party may be obligated to provide
indemnification to such Indemnitee  pursuant to Section 4.1 or 4.2, or any other
Section of this Agreement or any Ancillary Agreement, such Indemnitee shall give
such  Indemnifying  Party written  notice  thereof within twenty (20) days after
becoming  aware of such Third Party Claim.  Any such notice  shall  describe the
Third Party Claim in  reasonable  detail.  Notwithstanding  the  foregoing,  the
failure of any  Indemnitee  or other  Person to give  notice as provided in this
Section  4.4(a)  shall  not  relieve  the  related  Indemnifying  Party  of  its
obligations  under this  Section 4, except to the extent that such  Indemnifying
Party is actually prejudiced by such failure to give notice.

                  (b) An Indemnifying Party may elect to defend (and, unless the
Indemnifying  Party has specified any  reservations  or  exceptions,  to seek to
settle or  compromise),  at such  Indemnifying  Party's  own expense and by such
Indemnifying Party's own counsel, any Third Party Claim. Within thirty (30) days
after the receipt of notice from an Indemnitee in accordance with Section 4.4(a)
(or  sooner,  if the  nature  of  such  Third  Party  Claim  so  requires),  the
Indemnifying  Party shall notify the Indemnitee  whether the Indemnifying  Party
will assume  responsibility for defending such Third Party Claim, which election
shall specify any reservations or exceptions.  After notice from an Indemnifying
Party to an  Indemnitee  of its  election to assume the defense of a Third Party
Claim,  such Indemnitee  shall have the right to employ separate  counsel and to
participate in (but not control) the defense, compromise, or settlement thereof,
but the fees and

                                      -14-
<PAGE>

expenses of such counsel shall be paid by such Indemnitee except as set forth in
subsection (c).

                  (c)  If  an   Indemnifying   Party   elects   not  to   assume
responsibility  for  defending  a Third  Party  Claim,  or  fails to  notify  an
Indemnitee of its election as provided in Section  4.4(b),  such  Indemnitee may
defend such Third Party Claim at the cost and expense of the Indemnifying Party.

                  (d)  Unless  the  Indemnifying  Party has failed to assume the
defense of the Third Party Claim in accordance with the terms of this Agreement,
no Indemnitee may settle or compromise any Third Party Claim without the consent
of the Indemnifying Party.

                  (e) In the case of a Third Party Claim, no Indemnifying  Party
shall consent to entry of any judgment or enter into any settlement of the Third
Party Claim without the consent of the  Indemnitee  if the effect  thereof is to
permit any injunction,  declaratory  judgment,  other order or other nonmonetary
relief to be entered, directly or indirectly, against any Indemnitee.

                  (f) The  provisions  of Section  4.4 and Section 4.5 shall not
apply to Taxes (which are covered by the Tax Sharing Agreement).

            4.5   ADDITIONAL MATTERS.
                  ------------------

                  (a) Any claim on account of a Liability  which does not result
from a Third  Party  Claim  shall be  asserted  by written  notice  given by the
Indemnitee to the related Indemnifying Party. Such Indemnifying Party shall have
a period of thirty (30) days after the receipt of such  notice  within  which to
respond thereto.  If such Indemnifying Party does not respond within such 30-day
period,  such  Indemnifying  Party  shall be  deemed to have  refused  to accept
responsibility  to make  payment.  If such  Indemnifying  Party does not respond
within  such  30-day  period or  rejects  such  claim in whole or in part,  such
Indemnitee  shall be free to pursue such  remedies as may be  available  to such
party as contemplated by this Agreement and the Ancillary Agreements.

                  (b)  In  the  event  of   payment  by  or  on  behalf  of  any
Indemnifying  Party to any Indemnitee in connection  with any Third Party Claim,
such  Indemnifying  Party shall be subrogated to and shall stand in the place of
such  Indemnitee  as to any  events or  circumstances  in  respect of which such
Indemnitee  may have any right,  defense or claim  relating  to such Third Party
Claim  against any  claimant or  plaintiff  asserting  such Third Party Claim or
against any other person. Such Indemnitee shall cooperate with such Indemnifying
Party in a reasonable  manner,  and at the cost and expense of such Indemnifying
Party, in prosecuting any subrogated right, defense or claim.

                  (c) In the event of an Action in which the Indemnifying  Party
is not a named  defendant,  if the  Indemnifying  Party  shall so  request,  the
parties shall

                                      -15-
<PAGE>

endeavor to substitute the Indemnifying  Party for the named defendant.  If such
substitution  cannot be achieved for any reason or is not  requested,  the named
defendant shall allow the  Indemnifying  Party to manage the Action as set forth
in this  Section and the  Indemnifying  Party shall  fully  indemnify  the named
defendant  against all costs of  defending  the Action  (including  court costs,
sanctions  imposed  by a court,  attorneys'  fees,  experts'  fees and all other
external expenses), the costs of any judgment or settlement, and the cost of any
interest or penalties relating to any judgment or settlement.

            4.6   REMEDIES CUMULATIVE.  The remedies  provided in this Section 4
                  -------------------
shall be  cumulative  and,  subject  to the  provisions  of Section 6, shall not
preclude  assertion by any  Indemnitee of any other rights or the seeking of any
and all other remedies against any Indemnifying Party.

            4.7   SURVIVAL OF INDEMNITIES. The rights and obligations of each of
                  -----------------------
Intelligroup and SeraNova and their respective  Indemnitees under this Section 4
shall  survive  the  sale or  other  transfer  by any  party  of any  Assets  or
businesses or the assignment of any Liabilities.

            4.8   ALLEGED INFRINGEMENT OR MISAPPROPRIATION.
                  ----------------------------------------

                  (a)  Notwithstanding  any other provision of this Agreement or
any Ancillary Agreement,  in the event of any claim, action,  proceeding or suit
by a third party  against any member of the SeraNova  Group or the  Intelligroup
Group  alleging  an  infringement  of  any  patent,   copyright,   trademark  or
misappropriation  of a trade secret (each a "Claim")  with respect to any of the
transferred  intellectual  property or the  Licensed  Intellectual  Property set
forth on EXHIBIT A and EXHIBIT G,  respectively  (for  purposes of this  Section
         ---------     ---------
4.8, the "Disputed Intellectual  Property"),  the parties agree to adhere to the
procedures set forth in paragraphs (b), (c) and (d) below.

                  (b) If the use or  distribution  by any member of the SeraNova
Group  or the  Intelligroup  Group,  as  applicable,  of  any  of  the  Disputed
Intellectual  Property  is  enjoined  or in the  opinion  of such  member of the
applicable Group is likely to be enjoined,  SeraNova and Intelligroup shall, use
their reasonable best efforts to jointly: (i) replace the Disputed  Intellectual
Property with a substitute  free of any  infringement;  (ii) modify the Disputed
Intellectual  Property  so that it will be free of the  infringement;  or  (iii)
procure for such member of the applicable Group or its distributees a license or
other right to use the Disputed Intellectual Property.

                  (c)  Each of  Intelligroup  and  SeraNova,  on  behalf  of its
respective  Group,  agrees to provide,  or cause to be provided,  prompt written
notice to the  other  party of any Claim and  Intelligroup  and  SeraNova  shall
jointly assume the defense thereof,  including appeals,  and to settle the same.
Each party shall, upon request,  furnish all information and provide  assistance
to the appropriate  members of the SeraNova Group or the Intelligroup  Group, as
applicable,  and cooperate in every  reasonable  way to  facilitate  the defense
and/or settlement of any such Claim.

                                      -16-
<PAGE>

                  (d) The  amount  paid or payable by a party as a result of the
losses,  claims,  damages,  liabilities  or  expenses  in  connection  with  the
remediation   efforts  set  forth  in  Section  (b)  above,   or  the   defense,
adjudication,  or  settlement  referred  to above shall be deemed to include any
legal or other fees or expenses  reasonably incurred by such party in connection
with investigating or defending any Claim.  Intelligroup and SeraNova agree that
it would not be just and equitable if the expenses  incurred in connection  with
the  remediation  efforts  set  forth in  Section  (b)  above,  or the  defense,
adjudication,  or settlement of a Claim under this Section 4.8 were  apportioned
on a pro rata basis  without  regard to the liability of each  respective  party
according a relative  finding of fault.  The  relative  fault of the  applicable
member or members of the Intelligroup Group, on the one hand, and the applicable
member or members of the SeraNova Group, on the other hand, shall be apportioned
as is  appropriate to reflect not only the relative  benefits  achieved but also
the relative fault assessed with respect to the Disputed Intellectual Property.

                  (e) The  foregoing  indemnity  will not  apply to any  alleged
infringement or misappropriation if and to the extent such alleged  infringement
or misappropriation arises from: (i) the use by any member of the SeraNova Group
or the  Intelligroup  Group  of any of the  Disputed  Intellectual  Property  in
combination  with any product,  software or other  material  provided by a third
party after the  Closing  Date;  or (ii) any  changes  made by any member of the
SeraNova Group or the Intelligroup Group in the Disputed  Intellectual  Property
after the Closing Date.

      5.    EXCHANGE OF INFORMATION; CONFIDENTIALITY.
            ----------------------------------------

            5.1   AGREEMENT FOR EXCHANGE OF INFORMATION; ARCHIVES.
                  -----------------------------------------------

                  (a)  Each of  Intelligroup  and  SeraNova,  on  behalf  of its
respective Group, agrees to provide, or cause to be provided,  to each member of
the  other  Group,  as soon as  reasonably  practicable  after  written  request
therefor,  any  Information  in the  possession  or under  the  control  of such
respective Group which the requesting party reasonably needs: (i) to comply with
reporting,  disclosure,  filing or other requirements  imposed on the requesting
party  (including  under  applicable  securities or tax laws) by a  Governmental
Authority having  jurisdiction  over the requesting  party;  (ii) for use in any
judicial,  regulatory,  administrative,  tax or other  proceeding or in order to
satisfy audit, accounting, claims, regulatory,  litigation, tax or other similar
requirements;  or (iii) to comply with its  obligations  under this Agreement or
any Ancillary  Agreement;  provided,  however,  that in the event that any party
determines  that  any  such  provision  of  Information  could  be  commercially
detrimental,  violate  any  law  or  agreement,  or  waive  any  attorney-client
privilege,  the  parties  shall  take all  reasonable  measures  to  permit  the
compliance  with  such  obligations  in a manner  that  avoids  any such harm or
consequence.

                  (b) After the Closing Date,  SeraNova shall have access during
regular  business  hours (as in effect from time to time) to the documents  that
relate to the SeraNova  Business  that are in the  possession  or control of any
member of the Intelligroup Group. SeraNova may obtain copies (but not originals)
of documents for bona fide

                                      -17-
<PAGE>

business  purposes.  Nothing  herein,  however,  shall be deemed to restrict the
access  of any  member of the  Intelligroup  Group to any such  documents  or to
impose  any  liability  on any  member  of the  Intelligroup  Group  if any such
documents are not maintained or preserved by Intelligroup.

                  (c) After the date  hereof  SeraNova  shall:  (i)  maintain in
effect at its own cost and expense  adequate  systems and controls to the extent
necessary  to enable the  members  of the  Intelligroup  Group to satisfy  their
respective reporting, accounting, audit and other obligations; and (ii) provide,
or cause to be provided,  to  Intelligroup  in such form as  Intelligroup  shall
request,  at no  charge  to  Intelligroup,  all  financial  and  other  data and
Information  as  Intelligroup  determines  necessary  or  advisable  in order to
prepare  Intelligroup  financial  statements  and  reports or  filings  with any
Governmental Authority.

            5.2   OWNERSHIP OF INFORMATION.  Any Information  owned by one Group
                  ------------------------
that is provided to a requesting  party  pursuant to Section 5.1 shall be deemed
to remain the property of the providing  party.  Unless  specifically  set forth
herein,  nothing  contained in this Agreement  shall be construed as granting or
conferring rights of license or otherwise in any such Information.

            5.3   RECORD RETENTION.  To  facilitate  the  possible  exchange  of
                  ----------------
Information  pursuant to this Section 5 and other  provisions of this Agreement,
the parties agree to use their reasonable best efforts to retain all Information
in their  respective  possession or control in  accordance  with the policies of
Intelligroup as in effect on the Closing Date. No party will destroy,  or permit
any of its  Subsidiaries to destroy,  any Information  which the other party may
have the right to obtain  pursuant to this  Agreement  prior to the tenth (10th)
anniversary of the date hereof  without first using its reasonable  best efforts
to notify the other party of the proposed destruction and giving the other party
the  opportunity  to  take  possession  of  such   Information   prior  to  such
destruction;  provided, however, that in the case of any Information relating to
Taxes or to  Environmental  Liabilities,  such  period  shall be extended to the
expiration  of the  applicable  statute  of  limitations  (giving  effect to any
extensions thereof).

            5.4   Limitation of Liability.  No party shall have any liability to
                  -----------------------
any other party in the event that any Information exchanged or provided pursuant
to this  Agreement  which is an  estimate or  forecast,  or which is based on an
estimate  or  forecast,  is found to be  inaccurate,  in the  absence of willful
misconduct  by the party  providing  such  Information.  No party shall have any
liability to any other party if any  Information is destroyed  after  reasonable
best efforts by such party to comply with the provisions of Section 5.3.

            5.5   OTHER AGREEMENTS PROVIDING  FOR EXCHANGE OF  INFORMATION.  The
                  --------------------------------------------------------
rights and obligations  granted under this Section 5 are subject to any specific
limitations, qualifications or additional provisions on the sharing, exchange or
confidential treatment of Information set forth in any Ancillary Agreement.

                                      -18-
<PAGE>

            5.6   PRODUCTION OF WITNESSES; RECORDS; COOPERATION.
                  ---------------------------------------------

                  (a)  After  the  Closing  Date,  except  in  the  case  of  an
adversarial  Action by one party against  another party (which shall be governed
by such discovery rules as may be applicable under Section 6 or otherwise), each
party hereto  shall use its  reasonable  best efforts to make  available to each
other party,  upon written request,  the former,  current and future  directors,
officers, employees, other personnel and agents of the members of its respective
Group  as  witnesses  (giving  consideration  to the  business  demands  of such
individuals)  and any books,  records or other  documents  within its control or
which it otherwise  has the ability to make  available or as may  reasonably  be
required in connection  with any Action in which the  requesting  party may from
time to time be  involved,  regardless  of whether  such Action is a matter with
respect to which  indemnification may be sought hereunder.  The requesting party
shall bear all costs and expenses in connection therewith.

                  (b) If an Indemnifying Party  (Intelligroup or SeraNova as the
case may be)  chooses  to defend or to seek to  compromise  or settle  any Third
Party Claim,  or if any party  chooses to prosecute or otherwise  evaluate or to
pursue  any claim  against a third  party,  the other  party  shall use its best
efforts to make available to such Indemnifying  Party  (Intelligroup or SeraNova
as the case may be),  upon  written  request,  the  former,  current  and future
directors, officers, employees, other personnel and agents of the members of its
respective Group as witnesses  (giving  consideration to the business demands of
such  individuals) and any books,  records or other documents within its control
or which it otherwise has the ability to make  available or as may reasonably be
required in connection  with such defense,  settlement  or  compromise,  or such
prosecution,  evaluation  or  pursuit,  as the case may be, and shall  otherwise
cooperate  in such  defense,  settlement  or  compromise,  or such  prosecution,
evaluation or pursuit, as the case may be.

                  (c)  Without   limiting  the  foregoing,   the  parties  shall
cooperate  and consult to the extent  reasonably  necessary  with respect to any
Actions, contingent Liabilities and contingent gains.

                  (d) Without  limiting any provision of this  Section,  each of
the parties  agrees to  cooperate,  and to cause each  member of its  respective
Group to  cooperate,  with each  other in the  defense  of any  infringement  or
similar claim with respect to any  intellectual  property and shall not claim to
acknowledge,  or  permit  any  member  of  its  respective  Group  to  claim  to
acknowledge,  the validity or infringing use of any  intellectual  property of a
third  Person in a manner  that would  hamper or  undermine  the defense of such
infringement or similar claim.

                  (e)  The  obligation  of  the  parties  to  provide  witnesses
pursuant to this Section 5.6 is intended to be  interpreted in a manner so as to
facilitate  cooperation and shall include the obligation to provide as witnesses
inventors  and other  officers  without  regard to  whether  the  witness or the
employer of the witness could assert a possible  business  conflict  (subject to
the exception set forth in the first sentence of Section 5.6(a)).

                                      -19-
<PAGE>

                  (f) In connection with any matter contemplated by this Section
5.6, the parties will enter into a mutually  acceptable joint defense  agreement
so as to  maintain  to the extent  practicable  any  applicable  attorney-client
privilege or work product immunity of any member of any Group.

            5.7   CONFIDENTIALITY.
                  ----------------

                  (a) Subject to Section 5.8, each of Intelligroup and SeraNova,
on behalf of itself and each other  member of its  respective  Group,  agrees to
hold,  and to cause  its  respective  directors,  officers,  employees,  agents,
accountants,  counsel and other advisors and  representatives to hold, in strict
confidence, with at least the same degree of care that applies to Intelligroup's
confidential  and proprietary  information  pursuant to policies in effect as of
the  Closing  Date,  all  Information  concerning  each such other Group that is
either in its possession  (including  Information in its possession prior to the
date hereof or the  Closing  Date) or  furnished  by any such other Group or its
respective directors,  officers,  employees,  agents,  accountants,  counsel and
other advisors and  representatives at any time pursuant to this Agreement,  any
Ancillary  Agreement or otherwise,  and shall not use any such Information other
than for such purposes as shall be expressly  permitted hereunder or thereunder,
except,  in each case, to the extent that such  Information has been: (i) in the
public domain  through no fault of such party or any member of such Group or any
of their respective directors, officers, employees, agents, accountants, counsel
and other advisors and representatives;  (ii) later lawfully acquired from other
sources by such party (or any member of such party's  Group)  which  sources are
not themselves bound by a  confidentiality  obligation;  or (iii)  independently
generated  without  reference to any proprietary or confidential  Information of
the other party.

                  (b) Each party agrees not to release or disclose, or permit to
be released or disclosed,  any such Information to any other Person,  except its
directors, officers, employees, agents, accountants,  counsel and other advisors
and  representatives  who need to know such Information (who shall be advised of
their  obligations  hereunder  with  respect  to such  Information),  except  in
compliance  with  Section  5.8.  Without   limiting  the  foregoing,   when  any
Information is no longer needed for the purposes  contemplated by this Agreement
or any Ancillary Agreement,  each party will promptly after request of the other
party  either  return to the other  party all  Information  in a  tangible  form
(including  all  copies  thereof  and all notes,  extracts  or  summaries  based
thereon) or certify to the other party that it has  destroyed  such  Information
(and such copies thereof and such notes, extracts or summaries based thereon).

            5.8   PROTECTIVE  ARRANGEMENTS.  In the event  that any party or any
                  ------------------------
member of its Group  either  determines  on the advice of its counsel that it is
required to disclose any Information  pursuant to applicable law or receives any
demand under lawful  process or from any  Governmental  Authority to disclose or
provide  Information  of any  other  party (or any  member of any other  party's
Group)  that is subject to the  confidentiality  provisions  hereof,  such party
shall notify the other party prior to disclosing or providing  such  Information
and shall  cooperate  at the  expense of the  requesting  party in  seeking  any
reasonable protective arrangements requested by such other party. Subject

                                      -20-
<PAGE>

to the foregoing,  the Person that received such request may thereafter disclose
or  provide  Information  to the extent  required  by such law (as so advised by
counsel) or by lawful process or such Governmental Authority.

      6.    ARBITRATION; DISPUTE RESOLUTION.
            -------------------------------

            6.1   AGREEMENT TO ARBITRATE.
                  ----------------------

                  (a) Except as otherwise specifically provided in any Ancillary
Agreement, the procedures for discussion,  negotiation and arbitration set forth
in this Section 6.1 hereto shall apply to all disputes,  controversies or claims
(each a  "Dispute")  that may arise out of or  relate  to, or arise  under or in
connection with this Agreement or any Ancillary  Agreement,  or the transactions
contemplated  hereby or thereby  (including  all actions taken in furtherance of
the transactions contemplated hereby or thereby on or prior to the date hereof),
or the commercial or economic  relationship  of the parties  relating  hereto or
thereto,  between or among any member of the Intelligroup Group and the SeraNova
Group.  Each  party  agrees on behalf of  itself  and each  other  member of its
respective Group that any Dispute shall be submitted to binding arbitration,  in
accordance with the dispute resolution  procedures specified in this Section. If
any of these  procedures  are  determined  to be invalid or  unenforceable,  the
remaining  procedures  shall  remain in effect and binding on the parties to the
fullest extent permitted by law.

                  (b) The arbitration shall be held in Edison, New Jersey before
a panel of three arbitrators. Any member or members of the SeraNova Group or the
Intelligroup  Group,  as applicable,  may by notice to the applicable  member or
members of the SeraNova Group or the Intelligroup  Group, as applicable,  demand
arbitration,  by serving on the other party a  statement  of the Dispute and the
facts relating or giving rise thereto, in reasonable detail, and the name of the
arbitrator  selected  by it.  Within  fifteen  (15) days  after  receipt of such
notice, the other party shall name its arbitrator, and the two arbitrators named
by the parties  shall,  within  fifteen (15) days after the date of such notice,
select the third arbitrator.

                  (c) The arbitration  shall be conducted in accordance with the
procedures  specified  in this  Section and shall be governed by the  Commercial
Arbitration Rules of the American  Aribitration  Association,  as may be amended
from time to time.  In the event of a conflict,  the  provisions of this Section
shall control.

                  (d) Any issue  concerning  the extent to which any  Dispute is
subject to  arbitration,  or concerning the  applicability,  interpretation,  or
enforceability of these procedures, including any contention that all or part of
these procedures are invalid or unenforceable,  shall be governed by the Federal
Arbitration  Act and resolved by the  arbitrators.  No potential  arbitrator may
serve on the panel  unless  first  agreeing  in writing to abide and be bound by
these procedures. The arbitrators may not award non-monetary or equitable relief
of any sort.  They shall have no power to award damages  inconsistent  with this
Agreement  or  punitive  damages  or  any  other  damages  not  measured  by the
prevailing  party's actual damages,  and the parties expressly waive their right
to obtain

                                      -21-
<PAGE>

such  damages in  arbitration  or in any other forum.  In no event,  even if any
other portion of these  procedures is adjudged invalid or  unenforceable,  shall
the arbitrators have power to make an award or impose a remedy that could not be
made or imposed by a court deciding the matter in the same jurisdiction.

                  (e) No discovery  shall be permitted  in  connection  with the
arbitration unless expressly  authorized by the arbitration panel upon a showing
of  substantial  need  by  the  party  seeking  discovery.  All  aspects  of the
arbitration  shall be treated  as  confidential.  Neither  the  parties  nor the
arbitrators may disclose the existence,  content or results of the  arbitration,
except as  necessary  to comply with legal or  regulatory  requirements.  Before
making  any such  disclosure,  a party  shall give  written  notice to all other
parties  and afford  such  parties a  reasonable  opportunity  to protect  their
interest.  The  result  of the  arbitration  shall be a final  decision  that is
binding on the parties, and judgment on the arbitrators' award may be entered in
any  court  having  jurisdiction.  The cost of such  arbitration  shall be borne
equally by the parties.

                  (f) This Section shall not apply to any Dispute arising out of
or relating to the ownership of intellectual  property.  The application of this
Section  to any other  Dispute  shall be waived  only by  written  agreement  of
Intelligroup  and SeraNova.  This Section  shall be  terminated  only by written
agreement of Intelligroup and SeraNova.

            6.2   CONTINUITY OF SERVICE AND PERFORMANCE. Unless otherwise agreed
                  -------------------------------------
in writing,  the parties  will  continue to provide  service and honor all other
commitments under this Agreement and each Ancillary  Agreement during the course
of dispute resolution pursuant to the provisions of this Section with respect to
all matters not subject to such dispute, controversy or claim.

            6.3   LAW GOVERNING ARBITRATION PROCEDURES.  The interpretation of
                  ------------------------------------
the provisions of this Section,  only insofar as they relate to the agreement to
arbitrate and any procedures pursuant thereto,  shall be governed by the Federal
Arbitration Act and other  applicable  federal law. In all other  respects,  the
interpretation of this Agreement shall be governed as set forth in Section 10.2.

      7.    EMPLOYEE RELATED MATTERS.
            ------------------------

            7.1   EMPLOYEE OFFERS. Prior to the Closing Date, SeraNova or one of
                  ---------------
its Subsidiaries  shall have made a written offer of employment or engagement to
each  employee,  independent  contractor or  consultant  working in the SeraNova
Business  listed on SCHEDULE 7.1 hereto.  Such  employment  offers shall provide
                    ------------
that such individual shall commence work for SeraNova or the named Subsidiary on
or before the Closing Date. Such employment  offers shall also require that such
individual  shall,  prior to the  Closing  Date,  inform  SeraNova of his or her
intention  to accept or decline  such offer and, if such  individual  intends to
accept such offer, to resign his or her employment with Intelligroup prior to or
as of the Closing Date.

                                      -22-
<PAGE>

            7.2   BENEFITS.  As soon  as  practicable  after  the  Closing Date,
                  --------
Intelligroup  shall  perform  and  undertake  all  acts as may be  necessary  to
rollover  or  otherwise  transfer  the  vested  interests  of  employees  in the
qualified  and   non-qualified   pension  plans  and  Section  401(k)  plans  of
Intelligroup to the  corresponding  plans  maintained by SeraNova.  Intelligroup
shall be responsible for any COBRA coverage  continuation notices required to be
provided with respect to any employee who accepts  employment with SeraNova.  On
or prior to the Closing Date,  Intelligroup  and SeraNova shall take all actions
as may be  necessary  to  approve  the  stock-based  employee  benefit  plans of
SeraNova in order to satisfy the  requirement  of Rule 16b-3 under the  Exchange
Act of 1934,  as amended,  and Section  162(m) of the  Internal  Revenue Code of
1986, as amended.

            7.3   NO SOLICITATION OF  EMPLOYEES.  For a period  of two (2) years
                  -----------------------------
after the Closing Date, neither Intelligroup nor SeraNova or any member of their
respective  Groups shall  solicit any employee of the other to terminate  his or
her employment to become an employee of the soliciting party,  without the prior
written consent of the other party.

            7.4   NO RIGHTS CONFERRED UPON EMPLOYEES.  Nothing in this Agreement
                  ----------------------------------
shall be deemed to confer any rights or remedies of any  employees,  independent
contractors  or  consultants  of any  member  of the  Intelligroup  Group or the
SeraNova Group  (including  individuals to whom SeraNova is to offer  employment
pursuant to Section  7.1).  No Person  shall be a third party  beneficiary  with
respect to the provisions of this Section 7.

      8.    FURTHER ASSURANCES AND ADDITIONAL COVENANTS.
            -------------------------------------------

                  (a) In  addition  to the  actions  specifically  provided  for
elsewhere in this Agreement, each of the parties hereto shall use its reasonable
best  efforts,  prior to, on and after the Closing Date, to take, or cause to be
taken,  all  actions,  and to do, or cause to be done,  all  things,  reasonably
necessary, proper or advisable under applicable laws, regulations and agreements
to consummate and make effective the transactions contemplated by this Agreement
and the Ancillary Agreements.

                  (b) Without limiting the foregoing, prior to, on and after the
Closing  Date,  each party hereto  shall  cooperate  with the other  party,  and
without any further  consideration,  but at the expense of the requesting party,
to  execute  and  deliver,  or use its  reasonable  best  efforts to cause to be
executed and delivered,  all instruments,  including  instruments of conveyance,
assignment  and  transfer,  and to make all  filings  with,  and to  obtain  all
consents,  approvals or  authorizations  of, any  Governmental  Authority or any
other  Person  under  any  permit,  license,   agreement,   indenture  or  other
instrument,  and to take all such other actions as such party may  reasonably be
requested to take by any other party hereto from time to time,  consistent  with
the terms of this Agreement and the Ancillary Agreements, in order to effectuate
the provisions  and purposes of this Agreement and the Ancillary  Agreements and
the transfers of the SeraNova  Assets and the  assignment  and assumption of the
SeraNova Liabilities and the

                                      -23-
<PAGE>

other  transactions  contemplated  hereby  and  thereby.  Without  limiting  the
foregoing,  each party will, at the reasonable request,  cost and expense of any
other party,  take such other actions as may be reasonably  necessary to vest in
such  other  party  good  and  marketable  title,  if and to  the  extent  it is
practicable to do so.

                  (c) On or prior to the Closing Date, Intelligroup and SeraNova
in their  respective  capacities  as direct and indirect  stockholders  of their
respective  Subsidiaries,  shall each  ratify any actions  which are  reasonably
necessary or desirable to be taken by  Intelligroup,  SeraNova or any Subsidiary
of Intelligroup or SeraNova,  as the case may be, to effectuate the transactions
contemplated by this Agreement.

                  (d) Prior to the Closing  Date,  if one or more of the parties
identifies any commercial or other service that is needed to assure a smooth and
orderly  transition of the businesses in connection with the consummation of the
transactions   contemplated  hereby  that  is  not  otherwise  governed  by  the
provisions  of this  Agreement  or any  Ancillary  Agreement,  the parties  will
cooperate in  determining  whether there is a mutually  acceptable  arm's-length
basis on which the other party will provide such service.

      9.    TERMINATION.
            -----------

            9.1   TERMINATION  BY  MUTUAL  CONSENT.    This  Agreement  may   be
                  --------------------------------
terminated  at any  time  prior to the date of the  Closing  Date by the  mutual
consent of Intelligroup and SeraNova.

            9.2   EFFECT OF TERMINATION. In the event of any termination of this
                  ---------------------
Agreement  prior to the Closing Date, no party to this  Agreement (or any of its
directors or officers)  shall have any  Liability or further  obligation  to any
other party.

      10.   MISCELLANEOUS.
            -------------

            10.1  COUNTERPARTS; ENTIRE AGREEMENT.
                  ------------------------------

                  (a)  This  Agreement  and  each  Ancillary  Agreement  may  be
executed in one or more  counterparts,  all of which shall be considered one and
the same  agreement,  and shall become  effective when one or more  counterparts
have been signed by each of the parties and delivered to the other party.

                  (b) This Agreement, the Ancillary Agreements and the Exhibits,
Schedules and Appendices hereto and thereto contain the entire agreement between
the parties with respect to the subject  matter  hereof,  supersede all previous
agreements, negotiations, discussions, writings, understandings, commitments and
conversations with respect to such subject matter and there are no agreements or
understandings  between  the  parties  other than those set forth or referred to
herein or therein.

            10.2  GOVERNING LAW.   Except  as set  forth in  Section  6.3,  this
                  -------------
Agreement and, unless  expressly  provided  therein,  each Ancillary  Agreement,
shall be

                                      -24-
<PAGE>

governed by and construed  and  interpreted  in accordance  with the laws of the
State of New Jersey  (other  than as to its laws of  arbitration  which shall be
governed  under the  Federal  Arbitration  Act or other  applicable  federal law
pursuant to Section 6.3),  irrespective  of the choice of laws principles of the
State  of  New  Jersey,  as to  all  matters,  including  matters  of  validity,
construction, effect, enforceability, performance and remedies.

            10.3  ASSIGNABILITY. Except as set forth in any Ancillary Agreement,
                  -------------
this Agreement and each Ancillary  Agreement  shall be binding upon and inure to
the  benefit  of  the  parties  hereto  and  thereto,  respectively,  and  their
respective  successors and assigns;  provided,  however, that no party hereto or
                                     --------   -------
thereto may assign its respective rights or delegate its respective  obligations
under this  Agreement  or any  Ancillary  Agreement  without the  express  prior
written consent of the other parties hereto or thereto.

            10.4  THIRD  PARTY  BENEFICIARIES.  Except  for the  indemnification
                  ---------------------------
rights  under  this  Agreement  of  any  Intelligroup   Indemnitee  or  SeraNova
Indemnitee in their  respective  capacities as such:  (a) the provisions of this
Agreement and each Ancillary Agreement are solely for the benefit of the parties
and are not intended to confer upon any Person  except the parties any rights or
remedies  hereunder;  and (b) there  are no third  party  beneficiaries  of this
Agreement  or any  Ancillary  Agreement  and  neither  this  Agreement  nor  any
Ancillary  Agreement  shall  provide any third  person  with any remedy,  claim,
liability,  reimbursement,  claim of  action  or other  right in excess of those
existing  without  reference to this  Agreement or any Ancillary  Agreement.  No
party hereto shall have any right, remedy or claim with respect to any provision
of this  Agreement  or any  Ancillary  Agreement  to the extent  such  provision
relates  solely to the other party  hereto or the members of such other  party's
Group.

            10.5  NOTICES.  All  notices  or  other  communications  under  this
                  -------
Agreement or any Ancillary Agreement,  except as may be specifically provided in
an Ancillary Agreement, shall be in writing and shall be deemed to be duly given
when:  (a)  delivered in person;  or (b)  deposited in the United States mail or
internationally  recognized  courier  service,  postage  prepaid,  addressed  as
follows:

            If to Intelligroup, to:
            -----------------------

            Intelligroup, Inc.
            499 Thornall Street
            Edison, New Jersey  08837
            Attn:  President

            If to SeraNova, to:
            -------------------

            SeraNova, Inc.
            499 Thornall Street
            Edison, NJ 08837
            Attn:  President

                                      -25-
<PAGE>

Any party may,  by notice to the other  party,  change the address to which such
notices are to be given.

            10.6  SEVERABILITY.  If  any  provision  of  this  Agreement  or any
                  ------------
Ancillary  Agreement or the application thereof to any Person or circumstance is
determined  by a  court  of  competent  jurisdiction  to  be  invalid,  void  or
unenforceable, the remaining provisions hereof or thereof, or the application of
such provision to Persons or circumstances or in jurisdictions  other than those
as to which it has been held  invalid  or  unenforceable,  shall  remain in full
force  and  effect  and shall in no way be  affected,  impaired  or  invalidated
thereby,  so  long  as the  economic  or  legal  substance  of the  transactions
contemplated  hereby  or  thereby,  as the case may be, is not  affected  in any
manner  adverse  to any  party.  Upon  such  determination,  the  parties  shall
negotiate in good faith in an effort to agree upon such a suitable and equitable
provision to effect the original intent of the parties.

            10.7  HEADINGS.   The  article,  section  and   paragraph   headings
                  --------
containedn  this  Agreement  and in the Ancillary  Agreements  are for reference
purposes only and shall not affect in any way the meaning or  interpretation  of
this Agreement or any Ancillary Agreement.

            10.8  WAIVERS OF DEFAULT.  Waiver by any party of any default by the
                  ------------------
other party of any provision of this Agreement or any Ancillary  Agreement shall
not be deemed a waiver by the waiving party of any  subsequent or other default,
nor shall it prejudice the rights of the other party.

            10.9  AMENDMENTS.  No provisions of this  Agreement or any Ancillary
                  ----------
Agreement  shall be deemed  waived,  amended,  supplemented  or  modified by any
party, unless such waiver,  amendment,  supplement or modification is in writing
and signed by the  authorized  representative  of the party  against  whom it is
sought to enforce such waiver, amendment, supplement or modification.

            10.10 LATE PAYMENTS. Except as expressly provided to the contrary in
                  -------------
this  Agreement  or in any  Ancillary  Agreement,  any  amount not paid when due
pursuant to this Agreement or any Ancillary Agreement (and any amounts billed or
otherwise  invoiced or demanded  and  properly  payable that are not paid within
thirty (30) days of such bill, invoice or other demand) shall accrue interest at
a rate per annum equal to six percent (6%).

                                    * * * * *

                                      -26-
<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Contribution Agreement to
be executed by their duly authorized representatives.

INTELLIGROUP, INC.

By: /s/ Ashok Pandey
   --------------------------
   Name:
   Title

SERANOVA, INC.

By: /s/ Raj Koneru
   --------------------------
   Name: Raj Koneru
   Title CEO

                   [Signature Page to Contribution Agreement]

                                      -27-
<PAGE>

                         LIST OF EXHIBITS AND SCHEDULES
                         ------------------------------

SCHEDULES
---------

2.4  -  Delayed Asset Transfers

2.7  -  List or Properties

3.1  -  Excluded Consents

7.1  -  Individuals to Whom Offers Shall Be Made

EXHIBITS
--------

A  -  Ancillary Agreements

B  -  SeraNova Assets

C  -  SeraNova Balance Sheet

D  -  SeraNova Contracts

E  -  SeraNova Liabilities

F  -  Permitted Liens

G  -  Licensed Intellectual Property

H  -  Intercompany Debt

                                      -28-
<PAGE>

                                  SCHEDULE 2.4
                                  ------------

                             DELAYED ASSET TRANSFERS

o  All assets of  Intelligroup  Asia  Private  Limited  relating to its Internet
   services and solutions  business shall be transferred to  Intelligroup  India
   Private Limited, a corporation  organized under the laws of India, as soon as
   practicable after the Closing Date.

o  All  of  the  equity  interest  owned  by  Intelligroup,  Inc.  or any of its
   subsidiaries  in   Intelligroup   India  Private  Limited  and  each  of  its
   subsidiaries,  if any,  shall be  transferred  to  SeraNova,  Inc. as soon as
   practicable after the Closing Date.

<PAGE>

                                  SCHEDULE 2.7
                                  ------------

                               LIST OF PROPERTIES

<PAGE>

   ----------------------------------------------------------------------------
                                                    PERCENTAGE OF PREMISES
              LOCATION AND/OR BRANCH                ALLOCATED TO SERANOVA
   ----------------------------------------------------------------------------

               499 Thornall Street                          33.65%
                Edison, New Jersey
   ----------------------------------------------------------------------------

             10210 North 25th Avenue                        100.0%
                 Phoenix, Arizona
   ----------------------------------------------------------------------------

               9013 North 25th Avenue                        100.0%
                     Suite 6
                 Phoenix, Arizona
   ----------------------------------------------------------------------------

              9014 North 23rd Avenue                        100.0%
                     Suite 1
                 Phoenix, Arizona
   ----------------------------------------------------------------------------

                   950 Tower Lane                            70.0%
                    Suite 300
             Foster City, California
   ----------------------------------------------------------------------------

            9399 West Higgins Building                      50.0%
               Suite 810, 8th Floor
                Rosemont, Illinois
   ----------------------------------------------------------------------------

             691 North Squirrel Road                        100.0%
                    Suite 175
              Auburn Hills, Michigan
   ----------------------------------------------------------------------------

<PAGE>

                                  SCHEDULE 3.1
                                  ------------

                                EXCLUDED CONSENTS

<PAGE>

                                EXCLUDED CONSENTS

                  ------------------------------------------
                        CONTRACT               DATE

                  ------------------------------------------
                    AMERICAN EXPRESS          3/22/98

                  ------------------------------------------
                          AUDI                1/1/99

                  ------------------------------------------
                     HEWLETT PACKARD          2/4/99

                  ------------------------------------------
                    LIQUIDPRICE INC.          8/13/99

                  ------------------------------------------
                  VIGNETTE CORPORATION        9/29/99

                  ------------------------------------------
                  VOLKSWAGEN OF AMERICA       1/1/99

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

<PAGE>

                                  SCHEDULE 7.1
                                  ------------

                    INDIVIDUALS TO WHOM OFFERS SHALL BE MADE

<PAGE>

         NA - North America,  IND - India,  AP - Asia Pacific,  EUR - Europe

Number  Organiz   Code                              Title
         ation

                         EMPLOYEE NAME
--------------------------------------------------------------------------------
   1     IND             A Keshav Narsipur          Team Leader
   2     IND             A Mani Kandan              Programmer
   3     IND             A Suneetha Madhukar        Programmer
   4     NA       PHD    Abhijit Barde              Associate Software Engineer
   5     NA       PHD    Akshay Shah                Associate Software Engineer
   6     NA       PHA    Alan Matsumoto             Temporary
   7     AP       MC     Alexander Frater           Manager
   8     AP       MC     Alistair McLeod Tennant    Principal Consultant
   9     IND             Allam Bharath Reddy        Programmer
   10    NA       PRD    Allison                    Admin
   11    AP       APA    Amanda Louise Talbot       Typist Receptionist
   12    IND             Amit Agarwal               Content Entry Analyst
   13    NA       PHD    Anand Mani                 Software Engineer
   14    NA       NJD    Anand Reddy Yedulla        Software Engineer
   15    IND             Anand V Kothamangalam      Content Entry Analyst
   16    IND             Anand Venkateshan          Testing Analyst
   17    NA       PRA    Andelin, Brian D.          Finance
   18    NA       PRD    Anderson, Dan              Principal Consultant MC
   19    AP       MC     Angela Mary Reynolds       Principal Consultant
   20    IND             Aniesh Chawla              Programmer
   21    IND             Anil Oggi                  Programmer
   22    NA       PHD    Anil Singh                 Manager
   23    IND             Anita Subbiah              Content Entry Analyst
   24    AP       MC     Anthony Ian Culloden       Principal Consultant
   25    AP       MC     Anthony John Booth         Manager
   26    AP       APA    Anthony Michael Duffin     Corporate Services Executive
   27    NA       PHD    Anuradha Pandey            Associate Software Engineer
   28    NA       PHD    Arati Madhineni            Associate Software Engineer
   29    IND             Aratikatla Shanti          Programmer
   30    IND             Arjun Mukherjee            Team Leader
   31    IND             Arun Gupta                 Programmer
   32    NA       PRD    Asay, Taylor               Software Engineer
   33    IND             Ashok Natrajan             Programmer
   34    IND      DEL    Ashutosh Yadav             VP - Delivery
   35    NA       OPS    Ashwin Royadurg            Recruiting Manager
   36    IND             Babanbhai Abdul Raheem     Programmer
   37    NA       PRD    Baird, J. Russell          Manager
   38    NA       DEL    Balaji Kodali              Associate Software Engineer
   39    NA       PRD    Balaji Krishnamurthy       Software Engineer
   40    IND      OPS    Balaji Venkatachalam       VP - Operations
   41    IND             Balasubramanian            Programmer
                         Mariswaran
   42    IND             Balu Herbert               Programmer
   43    NA       PHD    Balu Srinivasan            Software Engineer
   44    AP       MC     Barend Keith Craig         Manager
   45    AP       MC     Barney Heslop              Manager

<PAGE>

   46    AP       MC     Barry Dennis Mawer         Manager
   47    AP       APS    Barry John Old             Regional Account Director
   48    AP       APA    Belinda Jane Boettcher     Office Manager
   49    IND             Benoy Jose                 Programmer
   50    AP       VL     Bernadine Clare Marwick    Knowledge Manager
   51    AP       APA    Beverley Anne Ellis        Receptionist
   52    NA       PHD    Bharat Agarwal             Software Engineer
   53    NA       OPS    Bharat Raju                Recruting Manager
   54    IND             Bhaskar Prasad Mulugu      Programmer
   55    IND             Bhaskar Rajagopal          Team Leader
   56    IND             Bhaskar Reddy B V          Programmer
   57    IND             Bheemi Krishna Mohan       Programmer
   58    NA       PHD    Biju Nair                  Software Engineer
   59    IND             Biju Ruhamma L             Programmer
   60    NA       PHD    Biswajit Sarkar            Software Engineer
   61    AP       MC     Brian Charles Bernon       Principal Consultant
   62    AP       MC     Brian Fair                 Principal Consultant
   63    AP       MC     Bruce Tinsley              Principal Consultant
   64    AP       MC     Bruce Wood                 Manager
   65    AP       MC     Bryce James Pottinger      Manager
   66    IND             Bulusu Monmohanamurali S   Content Entry Analyst
   67    NA       PHD    Burton Machado             Software Engineer
   68    NA       PRD    Butler Melissa K.          Interactive Designer
   69    IND             C Leena Rani               Programmer
   70    IND             Candida                    Admin
   71    NA       PHA    Carol Wright               People Services Manager
   72    NA       PHD    Carolyn Lim                Software Engineer
   73    NA       FCD    Chakib Jaber               Software Engineer
   74    IND             Chandan Mishra             Programmer
   75    NA       PHD    Chandramohan Lingam        Associate Software Engineer
   76    IND             Chirenjeevi                MIS
   77    EUR      EUR    Chris                      Managing Director - Europe
   78    AP       APA    Christine Elizabeth        Executive Assistant
                         Boonzaier
   79    AP       APA    Christine Joan Nesbit      Office Manager
   80    NA       DC     Christopher Arokiraj       Associate Software Engineer
   81    AP       MC     Christopher Arthur         Principal Consultant
                         Marshall
   82    NA       PHD    Christopher Brinson        Associate Software Engineer
   83    AP       MC     Clare Louise Engel         Principal Consultant
   84    NA       MKT    Claudio Burgos             Creative Director
   85    AP       MC     Clifford John Blakely      Principal Consultant
   86    AP       MC     Colin Dinn                 Manager
   87    AP       APS    Colin Graham Butler        Regional Account Director
   88    NA       SOL    Cooper, Tyler B.           Manager
   89    NA       PRD    Coronel, Carlos            Associate Interactive
                                                    Designer
   90    NA       PRD    Cragun, Brian B.           Associate Content Analyst
   91    IND             D Kalyan Chakravarthi      Programmer
   92    NA       VLM    D.K. Chakravarthy          Methodologist
   93    IND             Dasaradhi Agnihotram V S   Programmer
   94    NA       OPS    Dave Ferguson              Recruiting Manager
   95    AP       MC     David George Gale          Principal Consultant

<PAGE>

   96    AP       MC     David Hawkins              Principal Consultant
   97    AP       MC     David John Kelly           Principal Consultant
   98    NA       PHD    David Lyons                Software Engineer
   99    AP       MC     David Nigel Niven          Principal Consultant
  100    AP       MC     David Raine Oswald         Principal Consultant
  101    NA              David Rogers               Controller
  102    NA       PRD    Davis, Matthew M.          Interactive Designer
  103    IND             Debiprasad Benerjee        Programmer
  104    NA       DEL    Deep Vaswani               Software Engineer
  105    NA       NJD    Deepa Balaji               Associate Software Engineer
  106    IND             Deepak S Agarwal           Programmer
  107    AP       APS    Denis Allan Parkinson      Regional Account Manager
  108    NA       PHD    Derek Au                   Software Engineer
  109    AP       MC     Derek Paul Lister          Principal Consultant
  110    NA       PHD    Devanath Desikan           Associate Software Engineer
  111    NA       PHD    Devendra Kumar             Associate Software Engineer
  112    NA       PHD    Dhananjay Naniwadekar      Associate Software Engineer
  113    IND             Dhanasekaran.  K           Programmer
  114    NA       SOL    Dharma Katkuri             Principal Consultant
  115    NA       SOL    Donahue, Michael P.        Director - Solutions
  116    AP       APM    Donald Tristram Moore      SVP - International
  117    NA       PHD    Duane Matsen               Software Engineer
  118    IND             Edward Samraj N            Programmer
  119    AP       APS    Eileen Wild                Principal Consultant
  120    NA       NAM    Elizabeth Massimo          Admin. Assistant
  121    NA       PHD    Eric Eckert                Principal Software Engineer
  122    NA       PHD    Fariza Ahsanuddin          Associate Software Engineer
  123    NA       PRM    Farr, Richard L.           Director
  124    NA       MGT    Fereshteh Azad             Principal Consultant
  125    AP       MC     Fiona Allan                Office Manager
  126    AP       MC     Francis Benedict Kelly     Principal Consultant
  127    AP       MC     Francisco Almeda TanKing   Principal Consultant
  128    AP       MC     Frederick Geoffrey Furkert Principal Consultant
  129    AP       APS    Fredrick John Peter (Bill) Director - Australia
                         Boyd
  130    NA       SOL    G.Venkat                   Principal Consultant
  131    IND             Gadde Ramesh               Programmer
  132    NA       NJD    Gajapathy Senthil Kumar    Software Engineer
  133    NA       NJD    Ganesh Nemmani             Associate Software Engineer
  134    NA       PHD    Ganeshbabu Subramanian     Software Engineer
  135    IND             Ganti Subba Rao            Admin
  136    AP       MC     Gary Parker                Principal Consultant
  137    IND             Gautam Deshpande           Programmer
  138    NA       PRD    Geary, Michael             Interactive Architect
  139    AP       APA    Genevieve Ruth Fraser      Accountant
  140    EUR      EUR    Geoff Baker                Director Solutions - Europe
  141    AP       MC     Geoffrey Allen Smith       Principal Consultant
  142    AP       MC     George Heatherwick Findlay Principal Consultant
  143    IND             George Korah               MIS
  144    NA       AU     George Moraetes            Principal Consultant
  145    NA       PRD    Gibbons, Thomas W.         Manager
  146    NA       OPS    Greg Killpack              Recruiting Manager

<PAGE>

  147    NA       PRA    Guilbert, Derrill E.       IS
  148    NA       PHD    Gunilla Sundstrom          Manager
  149    NA       PHD    Gunjan Vijayvergia         Software Engineer
  150    IND             Guru Prasad Vinjamuri      Programmer
  151    IND             Gurubachan Singh Sardar    Programmer
  152    NA       VLM    Gururaj Managuli           Director - Methodology
  153    NA       PRD    Hall, Craig                Associate Content Analyst
  154    IND             Hari Babu                  Programmer
  155    IND             Harilal Kanakavalli        Programmer
  156    AP       MC     Harry Chopra               Director Solutions Practice
  157    IND             Harsha Kiran               Admin
  158    AP       APS    Harvey David Calder        Associate Director
  159    NA       PHD    Himanshu Kohli             Software Engineer
  160    NA       SOL    Hitesh Seth                Principal Consultant
  161    NA       PRA    Hokanson, Amie             Finance
  162    NA       PRD    Hokanson, Nathan D.        Software Engineer
  163    IND             I Stephen Mosses           Programmer
  164    AP       MC     Iain Michael Barraclough   Principal Consultant
  165    AP       MC     Ian Hamish Roderik         Principal Consultant
                         McFadyen
  166    AP       APM    Ian Hugh Taylor            Managing Director - Asia
                                                    Pacific
  167    AP       APS    Ian Johnson                Director, Banking and
                                                    Finance
  168    AP       MC     Ian Stewart Mawson         Principal Consultant
  169    IND             J Sabesan                  Programmer
  170    IND             J V N D Prasad             Team Leader
  171    AP       MC     Jack Egon Boettcher        Principal Consultant
  172    NA       MKT    Jacobson, Rachel L.        Marketing Executive
  173    IND             Jaffar Sulaimani           Programmer
  174    NA       NJD    Jaganadda Eluri            Software Engineer
  175    NA       FCD    Jagannath Jayapaul         Software Engineer
  176    IND             Jagannathan Giridhar       Testing Analyst
  177    IND             James Rozario              Team Leader
  178    AP       MC     Jan Jeremia Olivier        Principal Consultant
  179    NA       OPS    Jan Johnson                Recruiting Manager
  180    IND             Jandhyala Kalyan Charavarthy
  181    NA       PRA    Janelle Jackson            Finance
  182    IND             Jasmit Singh               Recruiter
  183    NA       AU     Jay Krall                  Associate Director
  184    IND             Jaya Shankar Reddy P       Content Entry Analyst
  185    IND             Jayaram Goli               Programmer
  186    IND             Jayendaraj Ramamurthi      Programmer
  187    NA       MKT    Jeff Pasternak
  188    NA       NAS    Jeff Schulmann             Asssociate Director
  189    AP       APS    Jeffrey Gordon Roberts     Director - Asia
  190    NA       PRA    Jennifer                   Receptionist
  191    AP       APA    Jennifer Jane Wynne-Jones  Payroll Administrator
  192    NA       PRA    Jensen, Brea               Human Resources
  193    IND             Jerome Amirtharaj Ua       Team Leader
  194    AP       MC     Jillian Kuch               Human Resource Manager
  195    IND             Jitendra Kumar Rai         Programmer
  196    NA       PRD    Jochetz, Christopher       Interactive Architect

<PAGE>

  197    NA       PHD    Joe Jenkins                Software Engineer
  198    NA       SOL    Joe Postiglione            Vice President -
                                                    Eprocurement
  199    AP       MC     John Clive Emanuel         Principal Consultant
  200    AP       MC     John Edward Crisp          Principal Consultant
  201    NA       NAS    John Hardin                Principal Consultant
  202    NA       SOL    John Kimborough            Manager
  203    AP       MC     John Leslie Callcut        Director, Projects
  204    NA       SOL    John Lloyd Jones           Principal Consultant
  205    AP       APS    John Murray Downes         Regional Account Manager
  206    NA       AU     John Pas                   Principal Consultant
  207    NA       PRD    Johnson, Clifford N.       Content Analyst
  208    AP       MC     Jonathan Mark Ashby        Principal Consultant
  209    NA       PRD    Jordan, Chris              IS
  210                    Judith Rogerson            Admin to CEO & VP Buss Dev
  211    NA       DEL    Jyoti Nigam                Business Analyst
  212    IND             K Shravan Kumar            Programmer
  213    NA              Kala Bhatt                 Accounting
  214    NA       SOL    Kalyan Subramaian          Director
  215    NA       SOL    Kanth Miriyala             Associate Director
  216    IND             Kathiresan Palraj          MIS
  217    AP       APA    Kathleen Ann Warren        Executive Assistant
  218    AP       APA    Kathryn Young              Principal Consultant
  219    NA       PHD    Kaustubh Kunte             Software Engineer
  220    NA       PHD    Kaustubh Mule              Software Engineer
  221    IND             Kavitha V                  Programmer
  222    IND             Kavitha Varahabhatla       Programmer
  223    AP       APA    Kenneth George Foulner     Manager
  224    AP       MC     Kerry Anne Trotter         Regional Account Manager
  225    AP       MC     Kevan Moran                Principal Consultant
  226    IND             Khairunisa Begum           Programmer
  227    IND             Kilambi.V. Ramanujam       Testing Analyst
  228    AP       APS    Kimberly Michelle Klasbeek Payroll Administrator
  229    IND             Kiran Kumar Gundimeda      Programmer
  230    IND             Kiran Kumar Paladugu       Programmer
  231    NA       PRD    Kirkpatrick, Sam           Principal Software Engineer
  232    IND             Kishore  Lakshman Rajeti   Programmer
  233    NA       PRD    Knapp, Steven              Principal Consultant MC
  234    IND             Koppisetti Suresh Kumar    Programmer
  235    IND             Krishna Kanth Jandhyala    Programmer
  236    IND             Krishna Kosuri             Programmer
  237    NA       PHD    Krishnamurthy Rajagopal    Associate Software Engineer
  238    NA       NAS    Kristen Costa              Admin Assistant
  239    IND             Kumeta Vikram              Programmer
  240    NA       PRD    Laidig, Robert J.          Software Engineer
  241    NA       DEL    Lakshmi Narasimha Kota     Software Engineer
  242    IND             Lakshmin Narasimhan Srivaths
  243    NA       PRD    Larson, Brent              Associate Content Analyst
  244    AP       MC     Laurence Millar            Director - Telecomm
  245    NA       PHD    Laxmikant Dash             Associate Software Engineer
  246    AP       APA    Leslie Fearnley            Principal Consultant

<PAGE>

  247                    Lisa Carnato               Accounting
  248    AP       MC     Lisa Jennifer Rickman      Typist
  249    NA       PRD    Lono, Erik N.              Interactive Designer
  250    NA       PRD    LuBean, Aaron R.           Software Engineer
  251    NA       PRD    LuBean, Jason I.           Principal Software Engineer
  252    IND             M Laxmi Narayana           MIS
  253    IND             Madan Mohan Reddy B        Programmer
  254    NA       NJD    Madhusmita Gupte           Associate Software Engineer
  255    IND             Madhusudana Chittibhatta   Programmer
  256    NA       DEL    Mahendra Bairagi           Associate Software Engineer
  257    IND             Mahesh Kumar Navale        Programmer
  258    IND             Mallesh Kota               Programmer
  259    IND             Maninder Singh             Content Entry Analyst
  260    NA       PHD    Manjula Tekal              Software Engineer
  261    IND             Manoj Balraj               BSA
  262    NA       MC     Marcus Burrows             Manager
  263    AP       MC     Margery Jane Allison       Principal Consultant
  264    AP       APA    Maria Ann McKinley         Manager
  265    NA       PHD    Mark Bi                    Software Engineer
  266    AP       MC     Mark Raymond Gordon        Principal Consultant
  267    NA       NAS    Mark Smith                 Regional Acct Mgr
  268    AP       MC     Mark Thomas Turkington     Regional Account Manager
  269    AP       MC     Martin William Chambers    Principal Consultant
  270    NA       NAS    Matson, Jr. James E.       Regional Account Manager
  271    NA       PHD    Matthew Cronin             Software Engineer
  272    AP       MCS    Matthew Taylor             Principal Consultant
  273    NA       PRA    Maw, Kristin               Finance
  274    NA       PRM    Maw, Richard W.            Director
  275    NA       PRD    Mecham, David R.           Associate Director
  276    NA       PHD    Meena Gopakumar            Principal Consultant MC
  277    IND             Mekala Srinivas            Programmer
  278    NA       PHA    Melody Vosgier             Admin. Assistant
  279    AP       MC     Michael Cartlidge          Director - Solutions Asia
                                                    Pacific
  280    AP       MC     Michael Colin Campbell     Controller - Asia Pacific
  281    AP       MC     Michael John Walls         Principal Consultant
  282    AP       APA    Michele Ruth West          Principal Consultant
  283    NA       PHD    Mike Dunn                  Associate Software Engineer
  284    IND             Mohan Kannapa              Programmer
  285    NA       AU     Morrell, Gregory D.        Manager
  286    NA       PRD    Moss, Nicolas              Associate Content Analyst
  287    IND             Mothukuri Sridhar          Content Entry Analyst
  288    IND             Motupalli Srinivas Rao     Programmer
  289    IND             Mrudula Maddipati          Programmer
  290    NA       PHD    Mubasher Ahmed             Software Engineer
  291    IND             Mudassir Hussain Md        Programmer
  292    NA       DEL    Munish Arora               Associate Software Engineer
  293    IND             Murali Krishna Erramilli   Programmer
  294    NA       PHD    Murali Pallikonda          Associate Software Engineer
  295    NA       DEL    Murli Subramani            Software Engineer
  296    AP       MC     Murray Osborne             Manager
  297    IND             Muthiah Palaniappa         Programmer

<PAGE>

  298    IND             Naga Lanka                 MIS
  299    IND             Naga Raju Parsa            Programmer
  300    NA       SOL    Nagaraja Srivatsan         Director
  301    IND             Nagaraju M                 Programmer
  302    NA       DEL    Nageshwar Rao Sannidhanam  Software Engineer
  303    IND             Nageswara Rao Paidi        Programmer
  304    NA       PHD    Nancy Cservak              Principal Consultant MC
  305    IND             ProgrammerMurthy Upadhyayul S R
  306    IND             Narasimhaiah Narahari      Programmer
  307    NA       PHD    Nardesh Katoch             Associate Software Engineer
  308    IND             Naresh Kumar G             Programmer
  309    NA       NAS    Neal Bischel               Regional Account Director
  310    IND             Neeraj Vaddadi             BSA
  311    IND             Neeraja A.                 Programmer
  312    AP       MC     Neil Norman McDougall      Principal Consultant
  313    AP       MC     Neville Mercer             Principal Consultant
  314    NA       PHD    Nicholas Morisseau         Principal Consultant MC
  315    AP       MC     Nicola Charlotte Young     Assistant Office Manager
  316    NA       MKT    Nicole Altobello           Marketing Assistant
  317    AP       MC     Nigel Edwards              Regional Account Manager
  318    IND             Nitin Kumar Bhatia         Testing Analyst
  319    NA       PHD    Noor Haq                   Software Engineer
  320    IND             Nuthikattu Sailaja         Programmer
  321    NA       PHD    Osmon Sukhera              Software Engineer
  322    IND             P.V.U.Pavan Kumar          Content Entry Analyst
  323    IND             Pagutharivu S              Programmer
  324    NA       PRD    Painter, Timothy D.        Principal Software Engineer
  325    IND             Pankaj Hemnani             Programmer
  326    NA       PHD    Parag Matapurkar           Software Engineer
  327    IND             Programmerhi V Neelishetty
  328    IND             Pardhasardhi V Neelishetty Programmer
  329    IND             Parul Gupta                Programmer
  330    NA       NAS    Pat Gardner                Asssociate Director
  331    NA       PHA    Patrick Kelly              System Admin
  332    IND             Pawan Kumar Ramsastry      Programmer
  333    AP       APA    Peter Charles Bashford     Manager
  334    NA       NAS    Peter Evans                Asssociate Director
  335    AP       APS    Peter James Hicks          Regional Account Manager
  336    AP       MC     Peter Lindsay Smith        Principal Consultant
  337    IND             Prabhakar K.M.             Programmer
  338    IND             Prabhakar Kompella         Team Leader
  339    IND             Pradeep Ramnath Iyer       Programmer
  340    IND             Pradeep Sudhakar Joshi     Programmer
  341    NA       PHD    Prasad Samak               Software Engineer
  342    IND             Prasann V.Nadgir           Team Leader
  343    IND             Prasanna Karmarkar         Programmer
  344    NA       NJD    Prashant Gupte             Senior Software Engineer
  345    NA       PHD    Prashanth Chakrapani       Software Engineer
  346    IND             Prashanth Mallikarjun      Programmer
  347    IND             Pravas Ranjan Pattnayak    Programmer
  348    NA       PHD    Praveen Jhurani            Associate Software Engineer

<PAGE>

  349    IND             Praveena Sridhara          Content Entry Analyst
  350    NA       AU     Prem Vedamuthu             Principal Consultant
  351    IND             Pullamraju Harish          Testing Analyst
  352    IND             R Rajashree Pathipaka      Content Entry Analyst
  353    IND             R Subha                    Programmer
  354    NA       PHD    Raghu Neelagiri            Associate Software Engineer
  355    NA              Raj Koneru                 CEO
  356    IND             Rajagopalan Kasiraman      Programmer
  357    IND             Rajarathinam Singaravelu   Programmer
  358    IND             Rajashekar Reddy           Programmer
  359    NA       PHD    Rajashekhar Mukkavilli     Associate Software Engineer
  360    IND             Rajendra Prasad Chadalavada
  361    IND             Rajesh Babu Sv             Programmer
  362    NA       OPS    Rajesh Iyer                Recruiting Manager
  363    IND             Rajesh K                   Team Leader
  364    IND             Rajesh Yadali              Programmer
  365    NA       PHD    Rajmohan Kartha            Associate Software Engineer
  366    IND             Ramaa Raghavan             Testing Analyst
  367    IND             Ramachandran Dittavi.J.    Testing Analyst
  368    IND             Ramakanth P B S V          Programmer
  369    IND             Ramakrishnan               Programmer
  370    IND             Ramana Murthy              Programmer
  371    IND             Ramanuj Singh              Programmer
  372    NA       PHD    Rambabu Gonuguntla         Associate Software Engineer
  373    IND             Ravi Goje                  Team Leader
  374    IND             Ravi Kiran G               Programmer
  375    IND             Ravi Shankar L0Lla         Programmer
  376    NA              Ravi Singh                 CFO
  377    NA       PHD    Ravindra Mahajan           Software Engineer
  378    IND             Ravindra Reddy Katukuri    Programmer
  379    IND             Ravindrakumar Rasamsetti   Testing Analyst
  380    IND             Ravindranath Y.V.          Programmer
  381    NA              Richard Bevis              VP, Marketing
  382    NA       SOL    Richard Mclaren            Manager
  383    NA       PHD    Richard Reese              Software Engineer
  384    AP       APS    Richard Shenton Rice       Principal Consultant
  385    AP       MC     Richard Stephen Hatfield   Principal Consultant
  386    NA       PHA    Richard Verdugo            System Admin
  387    NA       PRD    Richey, Ronald H.          Principal Consultant MC
  388    NA       PRD    Richmond, Joe              Interactive Designer
  389    AP       MC     Robert Arthur Barclay      Principal Consultant
  390    AP       MC     Robert Ian Le Grice        Principal Consultant
  391    AP       MC     Robert Owen Barnes         Principal Consultant
  392    NA       NAS    Roger Comora               Regional Account Manager
  393    NA       NJD    Roger Thompson             Associate Software Engineer
  394    IND             Rokala Tarkesh Reddy       Programmer
  395    NA       OPS    Rony Daniel                Recruiting Manager
  396    AP       MC     Russell John Rolland       Principal Consultant
  397    NA       PRA    Rymer, Randy L.            Principal Software Engineer
  398    IND             S M Karthik                Programmer
  399    IND             S Praveen                  Programmer

<PAGE>

  400    IND             S Rajesh                   Programmer
  401    IND             Sainath P Chawla           Programmer
  402    NA       PHD    Sairam Venkataraman        Associate Software Engineer
  403    IND             Samuel Johnson             Programmer
  404    NA       DEL    Sandeep Ginde              Software Engineer
  405    IND             Sangeeta Kour              Testing Analyst
  406    IND             Sanjay Chaswal             Programmer
  407    NA       PHD    Sanjay Madaan              Software Engineer
  408    NA       PHD    Sanjay Rao                 Software Engineer
  409    NA       DEL    Sanjay Sinha               Software Engineer
  410    NA       DEL    Santosh Ravindran          Software Engineer
  411    NA       PHD    Saptarshi Sen              Software Engineer
  412    IND             Sathyanarayana Reddy  V    Programmer
  413    IND             Sathyaprasad K             Programmer
  414    NA       DEL    Satish Aditiwar            Software Engineer
  415    NA       NAS    Scoffield, Lance           Regional Account Manager
  416    NA       AU     Scott Crompton             Director
  417    IND             Selvi Arulraj              Testing Analyst
  418    NA       PHD    Sendhil Chokkalingam       Software Engineer
  419    NA       SOL    Senthil Kunchithapatham    Associate Director
  420    IND             Shaik Altaff Mohiddin      Programmer
  421    IND             Shaik Mahammad Abbas Ali   Testing Analyst
  422    AP       MC     Sharon Ann Tait            Principal Consultant
  423                    Sharon Barrien             Accounting
  424    NA       DEL    Sharon Glaser              Principal Consultant
  425    NA       PHM    Shashi Jasthi              Director
  426    IND             Shashikanth Hanumanta Rao  Programmer
  427    IND             Shibu Mathew               Programmer
  428    IND             Shirmila  Rani Thota       Programmer
  429    NA       PHD    Shyam Challapalli          Associate Software Engineer
  430    NA       PHD    Siva Chilukuri             Software Engineer
  431    NA       PHD    Siva Prasad Marella        Associate Software Engineer
  432    NA       PRD    Smith, Randall K.          Principal Consultant MC
  433    IND             Smitha Puranik             Programmer
  434    IND             Somayajulu Kolli.S.S.S     Testing Analyst
  435    IND             Sonal J. Ashtikar          Programmer
  436    IND             Sowmya Katragadda          Programmer
  437    NA       PRD    Spears, Kristin            Principal Software Engineer
  438    IND             Sreejay Mullakandy         Recruiting and Operations
                                                    Manager
  439    IND             Sreekant Gottimukkala      Programmer
  440    IND             Sri Lakshmi Dronamraju     Programmer
  441    IND             Sridhar Reddy              Programmer
  442    NA       DC     Sridhar Reddy              Software Engineer
  443    IND             Sridhar Vamaraju           Programmer
  444    NA       PHD    Srikanth Katakam           Software Engineer
  445    IND             Srikanth Murthy            Programmer
  446    IND             Srikanth S Koneru          Content Entry Analyst
  447    IND             Srinath Vamaraju           Content Entry Analyst
  448    NA       PHD    Srinivas Akkineni          Associate Software Engineer
  449    IND             Srinivas Gullipalli        Programmer
  450    IND             Srinivas Kumar Mukkamala   Programmer

<PAGE>

  451    NA       PHD    Srinivas                   Software Engineer
                         Nandamuri
  452    IND             Srinivas Pediredla         Programmer
  453    IND             Srinivas Rao Ganti         Programmer
  454    IND             Srinivas Tatavarthy        Team Leader
  455    IND             Srinivas Veeramachaneni S  Content Entry Analyst
  456    NA       PHD    Srinivasan Rajamanickam    Software Engineer
  457    IND             Sriram Muthugi             Programmer
  458    IND             Sriram S Chari             Testing Analyst
  459    IND             Sriram Swaminathan         Programmer
  460    IND             Sriranjani Varadarajan Z   Programmer
  461    NA       PHD    Stefanie Sicard            Associate Software Engineer
  462    NA       SOL    Steven Hagler              Director
  463    AP       APA    Steven Heath               Solution Practice Manager
  464    NA       PRD    Stockett, Z. Ted           Principal Software Engineer
  465    NA       PRD    Stringham, Mark D.         Associate Content Analyst
  466    IND             Subba Rao A.S.V            Team Leader
  467    IND             Subbu Uppuluri             Project Manager
  468    NA       PHD    Subhajit Bhattacherjee     Software Engineer
  469    NA       PHD    Sudheer Mahankali          Associate Software Engineer
  470    IND             Suman Srinivas Pothula     Programmer
  471    IND             Sumathi Athuluri           Programmer
  472    NA       PHD    Sumit Sood                 Software Engineer
  473    NA       PRD    Sumner, Richard E.         Principal Consultant MC
  474    IND             Sundar Rajan S             Testing Analyst
  475    NA       PHD    Sunil Fernandes            Programmer
  476    IND             Sunita Chary               Recruiter
  477    IND             Suraj Prabhu               Programmer
  478    IND             Surender Rao Katikineni    Programmer
  479    IND             Sushanto Mukherjee         Team Leader
  480    IND             Susheel Nair               Programmer
  481    NA       PRD    Swenson, Dawna S.          Principal Consultant MC
  482    IND             Syed Amanullah Khan        Team Leader
  483    AP       MC     Tadeusz Jozef Gawor        Manager
  484    NA              Tarun Chandra              VP, Corp Strategy
  485    NA       NAS    Teri Gallo                 Asssociate Director
  486    AP       MC     Terry Adams                Regional Account Manager
  487    NA       AU     Terry Bradshaw             Principal Consultant
  488    NA       AU     Terry, Stephanie A.        Principal Consultant
  489    AP       MC     Thomas Michael Hunter      Principal Consultant
  490    AP       MC     Thomas Ward Bradshaw       Operations Manager
  491    NA       PRD    Thomas, Jennifer           Manager
  492    NA       FCD    Tim Lupton                 Software Engineer
  493    NA       DEL    Tirumalesh Kowdlay         Software Engineer
  494    NA              Tom Bernetich              SVP, North America Sales
  495    NA       AU     Troy Mclean                Manager
  496    IND             Tummala Suresh             Programmer
  497    NA       PHD    Uday Pothakamury           Associate Software Engineer
  498    NA       DEL    Udipi Charya               Software Engineer
  499    IND             Ugrappa Vinay.K.           Programmer
  500    IND      INDA   Unnamed                    Controller
  501    IND      INDA   Unnamed                    Director - HR

<PAGE>

  502    IND             Upadyaula Raghu            Programmer
  503    IND             Uppala Srikanth            Testing Analyst
  504    AP       APS    Utam Singh Pannu           Principal Consultant
  505    IND             V Mahesh Yadav             Programmer
  506    IND             V S Pavan Kumar            Programmer
  507    IND             Vamsee Krishna Karumudi    Content Entry Analyst
  508    NA       PRD    Varkala, Venkat            Software Engineer
  509    IND             Varun Kumar                BSA
  510    NA       DC     Venkatesh Kumar KirupakaranAssociate Software Engineer
  511    NA       PHD    Venkatesh Rao              Software Engineer
  512    IND             Venkatesh Sadagopan        BSA
  513    NA       PHD    Venkatesh Srinivas Rao     Software Engineer
  514    NA       PHD    Venkatesh Thirumalisamy    Software Engineer
  515    IND             Venkateshwara Rao          Programmer
  516    NA       NAS    Venu Raghavan              Account Manager
  517                    Veronica Soto              Admin to Finance
  518    AP       MC     Victor Ian Wardrop         Principal Consultant
  519    NA       NAS    Victoria Hedrick           Account Manager
  520    IND             Vidhya M R                 Programmer
  521    NA       OPS    Vidya Shaker               Recruiting Manager
  522    NA       PHA    Vijay Pulsani              System Admin
  523    IND             Vijaya Kumar Rao           Programmer
  524    IND             Vijaya Sarathi Tvr         Programmer
  525    IND             TestinghAnalysteddy Talugul
  526    IND             Vikranth Pathak            Programmer
  527    NA       PHD    Vinay Bhat                 Software Engineer
  528    NA       DEL    Vinayak Padaki             Software Engineer
  529    IND             Vineesh Degapudi           Programmer
  530    NA       DEL    Vinod Mandhana             Software Engineer
  531    IND             Visweshwar Rao M           Programmer
  532    AP       MC     Warren Topp                Principal Consultant
  533    AP       OPS    Willem Abraham Geerts      Principal Consultant
  534    AP       MC     William Johnson            Director - Phillipines
  535    NA       PRD    Wimmer, Jason              Content Analyst
  536    NA       PRD    Wing, Brent                Principal Consultant MC
  537    NA       PRA    Wuehler, Michael T.        IS
  538    IND             Yerukala Chandra           Programmer
  539    NA       PHD    Yogendra Yadav             Software Engineer
  540    NA       DEL    Yuvraj Joshi               Software Engineer
  541    IND             Zeenat Vastad              Programmer
  542    NA       PRD    Zimmerman, Joel            Principal Consultant MC
  543    NA       FCA    Zina Albano                Admin. Assistant

<PAGE>

                                    EXHIBIT A
                                    ---------

                              ANCILLARY AGREEMENTS

      The term "Ancillary Agreements" includes the following agreements:

                  (i)   Services Agreement;

                  (ii)  Tax Sharing Agreement;

                  (iii) Space Sharing Agreement;

                  (iv)  Distribution Agreement; and

                  (v)   Promissory Note.

<PAGE>

                                    EXHIBIT B
                                    ---------

                                 SERANOVA ASSETS

     The term "SeraNova Assets" includes:

o    Assets Related to the Conduct of the SeraNova Business in the United States
     by Intelligroup, Inc. (attached hereto):

o    All of the equity interests of Intelligroup in the following companies:

      1.    NetPub;

      2.    Azimuth and each of its subsidiaries; and

      3.    Intelligroup India Private Limited and each of its subsidiaries.

<PAGE>

                                        SERANOVA ASSETS
                                   AS OF DECEMBER 31, 1999
                                         (in thousands)
<TABLE>
<CAPTION>
                           ASSETS                              VALUE       RECIPIENT      CONTRIBUTING
                                                                                            ENTITY
                                                                           SERANOVA       INTELLIGROUP
<S>                                                         <C>
  Current Assets:
      Cash                                                  $        -
      Accounts receivable, net of allowance for doubtful
          accounts of $225                                       3,289
      Unbilled services                                          2,872
      Other current assets                                         185
                                                            ----------
  Total Current Assets                                           6,346
  Property and equipment, net                                    1,072
  Intangible assets, net                                             -
  Other assets                                                       -

  Total Assets                                              $    7,418
                                                            ==========

                           ASSETS                              VALUE       RECIPIENT      CONTRIBUTING
                                                                                            ENTITY
                                                                            NETWORK         NETWORK  (1)
                                                                           PUBLISHING     PUBLISHING
  Current Assets:
      Cash                                                  $      380
      Accounts receivable, net of allowance for doubtful
          accounts of $128                                       2,164
      Unbilled services                                             --
      Other current assets                                          49
                                                            ----------
  Total Current Assets                                           2,593
  Property and equipment, net                                      529
  Intangible assets, net                                         3,492
  Other assets                                                      --

  Total Assets                                              $    6,614
                                                            ==========

(1) Intelligroup  will  contribute  100% of outstanding  Common Stock of Network Publishing.

                           ASSETS                              VALUE       RECIPIENT      CONTRIBUTING
                                                                                            ENTITY
                                                                           AZIMUTH         AZIMUTH (2)
  Current Assets:
      Cash                                                  $      219
      Accounts receivable, net of allowance for doubtful
          accounts of $0                                         2,003
      Unbilled services                                            808
      Other current assets                                         117
                                                            ----------
  Total Current Assets                                           3,147
                                                            ----------
  Property and equipment, net                                      253
  Intangible assets, net
  Other assets                                                       9

  Total Assets                                              $    3,409
                                                            ==========

(2) Intelligroup,  Inc  will  contribute  100% of  outstanding  Common  Stock of Azimuth.
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                           ASSETS                              VALUE       RECIPIENT      CONTRIBUTING ENTITY
                                                                            INDIA             INTELLIGROUP
<S>                                                         <C>
  Current Assets:
      Cash                                                  $       12
      Accounts receivable, net of allowance for
      doubtful accounts of $0
      Unbilled services
      Other current assets                                         379
                                                            ----------

  Total Current Assets                                             391

  Property and equipment, net
  intangible assets, net other assets                            1,009
                                                            ----------
  Total Assets                                              $    1,400
                                                            ==========

                           ASSETS                              VALUE       RECIPIENT      CONTRIBUTING ENTITY
                                                                              UK             INTELLIGROUP
  Current Assets:
      Cash
      Accounts receivable, net of allowance for
      doubtful accounts of $0
      Unbilled services
      Other current assets                                          39
                                                            ----------

  Total Current Assets                                              39

  Property and equipment, net intangible
  assets, net other assets
                                                            ----------
  Total Assets                                              $       39
                                                            ==========

</TABLE>

<PAGE>
<TABLE>
<CAPTION>
            COMPUTERS
Date                Description                         Price

<S>      <C>                                             <C>
  4/8/98 Scanner for Sastry & Zip Drive for Rajan Nair      287.45
 4/30/98 Laptop for Bharat Raju                           3,133.00
  8/5/98 Desktops for ISS Projects                       10,432.20
 8/28/98 Desktops for Phoenix                            22,174.44
 8/28/98 Server for Phoenix                              16,443.32
  9/2/98 Laptop Accessories for Phoenix                   2,244.29
  9/2/98 Laptops, Memory, SW, Server,                     6,751.15
         for Phoenix
 9/14/98 Laptops for Phoenix                             15,982.72
 9/17/98 Desktops for Phoenix                            22,865.37
10/19/98 Desktops for Phoenix                            31,649.23
10/29/98 PostOffice Upgrade and Maintenance for           2,295.00
         Phoenix
11/11/98 Desktops for Phoenix                            40,716.09
 1/15/99 Desktops for Phoenix                            22,207.81
 1/19/99 Printer for Phoenix                              1,573.70
 1/25/99 Laptop Accessories for Sastry                      557.84
 3/10/99 Adtran CSU/DSU for Phoenix                         671.00
 3/11/99 Swiftsite Hardware Equipment for Phoenix         9,876.20
 3/31/99 Server for Dharma                               18,991.87
 4/15/99 Laptops for Phoenix                              9,052.53
 4/26/99 Desktop for Phoenix                              6,409.90
 5/18/99 Laptops for Phoenix                             29,441.87
 5/24/99 Laptop for Scott Crompton                        4,064.95
  6/2/99 Laptop for Roger Comora                          3,162.54
  6/9/99 Token Ring Cards for Phoenix                       964.24
 6/10/99 Laptop for Arvind Ramachandran                   3,841.21
 6/11/99 Memory for Phoenix                               1,227.56
 6/15/99 PC Cards for Phoenix                               616.06
 6/21/99 Laptops for Phoenix                             19,806.00
  7/8/99 Desktops for Phoenix                            20,260.90
  7/8/99 Hub, Printer, Mice, Cartridges for Phoenix       1,626.15
 7/12/99 Desktops for Phoenix                            20,260.90
 7/13/99 Hub for Phoenix                                    914.06
 7/29/99 Desktop for Security System in Phoenix             563.99
 7/29/99 Hard Drives for Phoenix                            965.20
 7/30/99 Turbo and Lan Cards for Phoenix                    868.73
 7/31/99 Laptop Purchase for ATD                          3,572.00
  8/4/99 Ethernet Cards for Phoenix                         186.99
 8/10/99 Laptop for Scott Crompton                        3,762.22
 8/13/99 Desktops for Phoenix                             9,599.00
 8/13/99 3Com Hub for Phoenix                               955.39
 8/16/99 CD Recorder for Arvind Ramamchandran               426.00
 8/21/99 Memory for Laptops for ISS Consultants (3)         421.58
 8/31/99 Laptop Purchase for ATD                          2,156.00
 8/31/99 Ethernet Card for ATD                              616.20
  9/8/99 Desktops for Phoenix Office                      8,557.22
 9/13/99 Desktops for Phoenix Office                     17,114.42
 9/16/99 Printer for Phoenix Office                       1,468.41
 9/22/99 Laptops for Phoenix Office                      21,960.15
 9/23/99 Laptop for Chakib Jaber                          4,076.75
 9/24/99 Memory for Phoenix Office                        1,800.99
 9/24/99 Token Ring Cards for Phoenix Office                230.00
 9/24/99 Docking Station for Chakib Jaber                   144.41
 9/28/99 Server for ISS                                   5,039.01
 9/29/99 Hub/PCI Cards for Phoenix Office                 2,809.20
 9/30/99 Port Switches/Mouse/Transceiver for Phoenix      3,503.30
                     TOTAL COMPUTERS                    441,298.71
</TABLE>

                        FURNITURE INVENTORY
<TABLE>
<CAPTION>
                             Quantity   Purchase
                              Count      Total

<S>                             <C>    <C>
Executive Desks*                 6      35,880
Manager Desks*                  19      79,610
Workstation/Desks**             49     131,320
Conference Tables***             3      21,750

Sofa                             1         894
Armchair                         1         894
Total Edison                           270,347

                             Quantity   Purchase
                              Count      Total

Managers Office                  4      15,860
Support Workstations            59     146,910
Conference/Trainin Area          1       3,200
Conference Rooms                 3       4,800
Additional Furniture             1      16,480
Total Phoenix                          187,250

   TOTAL FURNITURE & FIXTURES          457,597
</TABLE>

<PAGE>

                        TRANSFERRED INTELLECTUAL PROPERTY

1.  All  processes  and  methodologies  related  to  SeraNova's   Time-to-Market
    approach.

2.  All documents relating to SPEC Solution  Frameworks,  including  I-Discover,
    I-Supplier, I-Partner, I-Employee and I-Customer.

3.  All documents outlining application  development standards:  (a) Java Coding
    Standard; (b) Visual Basic Standard;  (c) GUI Standard; and (d) PowerBuilder
    Standard.

<PAGE>

                                    Exhibit C

                         SERANOVA COMBINED BALANCE SHEET
                                 (in thousands)

<TABLE>
<CAPTION>
                              FOR THE YEAR ENDED  FOR THE NINE-MONTH
                                 DECEMBER 31,        PERIOD ENDED
                                                 DECEMBER 31,     FOR THE YEARS ENDED MARCH 31,
                                     1999                1998            1998           1997
                                     ----                ----            ----           ----
<S>                               <C>                <C>              <C>             <C>
       ASSETS
Current Assets:
    Cash                          $   611            $    677         $    368        $    635
Accounts receivable, net of
allowance for doubtful
accounts of $353, $200, $207,
$127, $0, respectively              7,456               3,096            2,169           1,230

    Unbilled services               3,680                 900              252               4

    Other current assets              769                 286              112              41
                                  -------            --------         --------        --------

Total Current Assets               12,516               4,959            2,901           1,910

Property and equipment, net         2,863                 816              315             492
Intangible assets, net              3,492                   -                -               -
Other assets                            9                   -                -               -
                                  -------            --------         --------        --------

Total Assets                      $18,880            $  5,775         $  3,216        $  2,402
                                  =======            ========         ========        ========

  LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
    Current portion of long-term
    debt                          $   120            $      -         $      -        $      -
    Notes payable to Parent         8,397               1,541              816               -
    Accounts payable                  872                 526              276             137
    Accrued payroll and related
     Costs                          1,551               1,039              965             997
    Accrued expenses and
     other liabilities              2,352               2,277              699             211
                                  -------            --------         --------        --------

Total Current Liabilities          13,292               5,383            2,756           1,345

Long-Term Debt, net
of current portion                    618                  --              219             521
                                  -------            --------         --------        --------

Total Liabilities                  13,910               5,383            2,975           1,866

Shareholders' Equity:
Preferred stock $.01 par value,
5,000,000 shares authorized,
none issued or outstanding              -                   -                -               -
Common stock, $.01 par value,
40,000,000 shares authorized,
1,000 shares issued and
outstanding as of December 31,
1999                                    -                   -                -               -
    Parent company investment       7,250               1,353              727             701
    Currency Translation
    Adjustment                        (34)                 24              (53)             15
    Accumulated deficit            (2,246)               (985)            (433)           (180)
                                  -------            --------         --------        --------

Total Shareholders' Equity          4,970                 392              241             536
                                  -------            --------         --------        --------

Total Liabilities and
Shareholder's Equity              $18,880            $  5,775         $  3,216        $  2,402
                                  =======            ========         ========        ========
</TABLE>

                                    EXHIBIT D
                                    ---------

                               SERANOVA CONTRACTS

<PAGE>

                                                SERANOVA CONTRACTS

<TABLE>
<CAPTION>
CUSTOMER NAME                        DATE            CUSTOMER NAME                       DATE

<S>                                  <C>             <C>                                 <C>
Accident Compensation Corp           9/6/99          Mighty River Power                   9/20/99
Agilent Inc.                        12/6/99          Net Seed Development                 5/11/99
Air New Zealand Limited             6/29/98          New Zealand Dairy Board             10/12/99
Altiris                              2/5/99          New Zealand Police                   11/8/99
American Express                    3/22/98          North Shore City Council              9/8/99
Armstrong Inc.                      9/15/99          Novell Electronic Marketing          6/28/99
Asian Terminals Inc                11/22/99          Novell, Inc.                          2/9/99
Aspect Telecommunications           5/23/99          Ohgolly.com                          9/16/99
Auckland City                      10/12/99          Palmerston North CC                  4/20/99
Audi                                 1/1/99          Penreco                               3/8/99
Berli Jucker Public Company Ltd    12/19/99          Philippine National Oil              12/3/99
Big Planet                           3/9/99          Philippines Long Distance            1/15/98
Canterbury Meat Packers Ltd        10/12/99          Phillip Morris Philippines          12/10/99
Cedenco Australia Limited           8/25/99          Powerco                             10/21/99
Cerebos Gregg's Limited             8/25/99          PricewaterhouseCoopers               7/16/99
College Enterprises, Inc.           9/15/99          Rio Bravo Entertainment               2/5/99
Deloitte Touche Tomatsu             12/7/99          Royal Canadian Government            9/28/99
Department of Defence                8/5/99          Santa Cruz Operations                 3/1/99
Department of Labour                9/30/99          Sento Corporation                    7/15/99
Department of Lands                11/18/99          Simplot                               4/1/99
Dominion Salt Limited               8/25/99          Tacit Group                         11/15/99
EMI Music Publishing                 1/4/99          Telecom New Zealand Limited          10/4/99
Fragomen, Del Rey & Bernsen          1/7/99          Telecom New Zealand Ltd             10/11/99
Genesis Power                        4/6/99          Telephone Authority of Thailand     12/15/99
Globe Telecoms                      12/7/99          Television New Zealand                8/2/99
Heinz Wattie's Australasia          8/26/99          The Forums Group                     1/29/99
Hewlett Packard                      2/4/99          The Slaymaker Group, Inc.            6/17/99
IAccess.com                         3/22/99          The University of Auckland          10/18/99
IBM, Cable&Wireless A/c            10/18/99          TransAlta New Zealand Ltd            4/15/98
IHomeroom.com Corporation           9/17/99          US Cellular Corporation              10/6/99
Inland Revenue                      8/30/99          Utah.com                              1/6/99
Intermountain Health Care           9/14/99          Vignette Corporation                 9/29/99
J.R. Simplot Company                 6/9/99          Vilas Development Corporation       10/20/99
Liquidprice Inc.                    8/13/99          Volkswagen of America                 1/1/99
LWR Industries Limited              9/11/99          WebMethods, Inc.                     9/16/99
McKesson Corporation                 1/1/99          Work and Income NZ                  11/12/99
Medical Assurance Society          11/15/99          Zuellig Pharma                       7/30/99
Merrill, Scott and Associate         2/3/99          Zuellig Pharma Corporation           12/6/98
</TABLE>

<PAGE>

                                    EXHIBIT E
                                    ---------

                              SERANOVA LIABILITIES

      The term "SERANOVA LIABILITIES" includes:

Liabilities  assumed from  Intelligroup,  Inc.  with respect to the conduct of
SeraNova Business in the United States (attached hereto):

<PAGE>

                              SERANOVA LIABILITIES
<TABLE>
<CAPTION>
                        LIABILITIES                           VALUE           RECIPIENT        CONTRIBUTING ENTITY
                                                                              SeraNova             Intelligroup
<S>                                                        <C>
    Current Liabilities:
        Current portion of long-term debt                  $        -
        Notes payable to Parent                                 6,880
        Accounts payable                                            -
        Accrued payroll and related costs                         836
        Accrued expenses and other liabilities                    682
                                                           ----------
    Total Current Liabilities                                   8,398

    Long-Term Debt, net of current portion                         --
                                                           ----------
    Total Liabilities                                      $    8,398
                                                           ==========

                        LIABILITIES                           VALUE           RECIPIENT        CONTRIBUTING ENTITY
                                                                          Network Publishing   Network Publishing (1)
    Current Liabilities:
        Current portion of long-term debt                  $      120
        Notes payable to Parent                                    45
        Accounts payable                                           53
        Accrued payroll and related costs                         206
        Accrued expenses and other liabilities                    591
                                                           ----------
    Total Current Liabilities                                   1,015

    Long-Term Debt, net of current portion                        618
                                                           ----------

    Total Liabilities                                      $    1,633
                                                           ==========

(1)  Intelligroup  will contribute  100% of outstanding  Common Stock of Network
Publishing.

                        LIABILITIES                           VALUE           RECIPIENT        CONTRIBUTING ENTITY
                                                                               Azimuth              Azimuth (2)
    Current Liabilities:
        Current portion of long-term debt                  $        -
        Notes payable to Parent                                 1,389
        Accounts payable                                          573
        Accrued payroll and related costs                         505
        Accrued expenses and other liabilities                  1,079
                                                           ----------
    Total Current Liabilities                                   3,546

    Long-Term Debt, net of current portion                         --
                                                           ----------

    Total Liabilities                                      $    3,546
                                                           ==========

(2)  Intelligroup,  Inc will  contribute  100% of  outstanding  Common  Stock of
Azimuth.
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                        LIABILITIES                           VALUE           RECIPIENT        CONTRIBUTING ENTITY
                                                                                India              Intelligroup
<S>                                                        <C>
    Current Liabilities:
        Current portion of long-term debt
        Notes payable to Parent
        Accounts payable                                          195
                                                           ----------
        Accrued payroll and related costs
        Accrued expenses and other liabilities

    Total Current Liabilities                                     195

    Long-Term Debt, net of current portion                         --
                                                           ----------
    Total Liabilities                                      $      195
                                                           ==========

                        LIABILITIES                           VALUE           RECIPIENT        CONTRIBUTING ENTITY
                                                                                 UK                Intelligroup
    Current Liabilities:
        Current portion of long-term debt
        Notes payable to Parent                                    83
        Accounts payable                                           51
        Accrued payroll and related costs                           4
        Accrued expenses and other liabilities                     --
                                                           ----------
    Total Current Liabilities                                     138

    Long-Term Debt, net of current portion                         --
                                                           ----------
    Total Liabilities                                      $      138
                                                           ==========
</TABLE>

<PAGE>

                                    EXHIBIT F
                                    ---------

                                 PERMITTED LIENS

o  Liens granted to PNC Bank N.A. pursuant to that certain Revolving Credit Loan
   Agreement dated January 29, 1999 and the First Amendment to Revolving  Credit
   Loan Agreement dated January 26, 2000.

<PAGE>

                                    EXHIBIT G
                                    ---------

                         LICENSED INTELLECTUAL PROPERTY

1.  All  processes  and tools  related to 4 Sight  Methodology.

2.  All documents  outlining the software selection process  including, Business
    Process Templates, Flow Process Diagrams and Organizational Chart Templates.

<PAGE>

                                    EXHIBIT H
                                    ---------

                                INTERCOMPANY DEBT

<PAGE>

                                INTERCOMPANY DEBT

      SeraNova has a loan payable to  Intelligroup  as of December 31, 1999,  in
the amount of $8,397,000.  Additional amounts may become payable to Intelligroup
stemming  from  income  taxes  and/or  cash flow  requirements  for the  periods
subsequent to December 31, 1999 and prior to proposed  spin-off.  A note bearing
an interest rate equal to the current prime rate will be negotiated prior to the
proposed spin-off.DISTRIBUTION AGREEMENT

          This  Distribution   Agreement  dated  as  of  January  1,  2000  (the
"Agreement")   between   Intelligroup,    Inc.,   a   New   Jersey   corporation
("Intelligroup") and SeraNova, Inc., a New Jersey corporation ("SeraNova").

                              W I T N E S S E T H:

          WHEREAS, SeraNova is a wholly-owned Subsidiary of Intelligroup;

          WHEREAS, the Board of Directors of Intelligroup has determined that it
is in the best  interest  of  Intelligroup,  its  shareholders  and  SeraNova to
distribute to the holders of shares of Common  Stock,  par value $.01 per share,
of Intelligroup (the "Intelligroup  Common Stock") all of the outstanding shares
of Common Stock,  par value $.01 per share,  of SeraNova (the  "SeraNova  Common
Stock") owned by Intelligroup;

          WHEREAS,  the  Distribution  is  intended  to  qualify  as a  tax-free
spin-off under Section 355 of the Internal Revenue Code of 1986, as amended; and

          WHEREAS,  the parties hereto have  determined that it is necessary and
desirable to set forth the principal corporate  transactions  required to effect
the  Distribution  and to set forth other  agreements  that will govern  certain
other matters prior to or following the Distribution;

          NOW,  THEREFORE,  in  consideration  of the  premises  and the  mutual
covenants  herein  contained  and  intending to be legally  bound  thereby,  the
parties hereto agree as follows:

                                   ARTICLE 1.
                                   DEFINITIONS

          Section 1.1.   Definitions. The  following terms, as used herein, have
the following meanings:

          "Action"  means  any  claim,  suit,  action,   arbitration,   inquiry,
investigation or other proceeding by or before any court,  governmental or other
regulatory or administrative agency or commission or any other tribunal.

          "Affiliate"  means, with respect to any Person, any Person directly or
indirectly controlling,  controlled by, or under common control with, such other
Person.  For the purposes of this  definition,  "control"  means the possession,
directly or  indirectly,  of the power to direct or cause the  direction  of the
management  and policies of a Person,  whether  through the  ownership of voting
securities,   by  contract  or  otherwise;   and  the  terms  "controlling"  and
"controlled"  have meanings  correlative to the foregoing.  For purposes of this
Agreement, no member of one Group shall be treated as an Affiliate of any member
of either of the other Groups.

<PAGE>

          "Azimuth Companies" means, collectively,  Azimuth Consulting,  Azimuth
Corporation,  Azimuth Holdings,  Braithwaite Richmond and each Subsidiary of the
Azimuth Companies.

          "Azimuth  Consulting" means Azimuth Consulting  Limited, a corporation
formed  pursuant  to the laws of New Zealand and a  wholly-owned  subsidiary  of
Intelligroup.

          "Azimuth Corporation" means Azimuth Corporation Limited, a corporation
formed  pursuant  to the laws of New Zealand and a  wholly-owned  subsidiary  of
Intelligroup.

          "Azimuth  Holdings"  means  Azimuth  Holdings  Limited,  a corporation
formed  pursuant  to the laws of New Zealand and a  wholly-owned  subsidiary  of
Intelligroup.

          "Braithwaite   Richmond"  means  Braithwaite   Richmond   Limited,   a
corporation  formed  pursuant  to the  laws of New  Zealand  and a  wholly-owned
subsidiary of Intelligroup.

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

          "Distribution"   means  the   distribution   by  Intelligroup  on  the
Distribution  Date of the  SeraNova  Common Stock owned by  Intelligroup  to the
holders of Intelligroup Common Stock as of the Record Date.

          "Distribution Agent" means American Stock Transfer & Trust Company.

          "Distribution   Date"  means  the   business   day  as  of  which  the
Distribution shall be effected.

          "Distribution  Documents"  means  all  of  the  agreements  and  other
documents  entered  into  in  connection  with  the  Distribution  or the  other
transactions contemplated hereby, including, without limitation, this Agreement,
the Contribution Agreement, Tax Sharing Agreement,  Services Agreement and Space
Sharing Agreement.

          "Effective Time" means  immediately  prior to the close of business on
the Distribution Date.

          "Environmental  Laws"  means  any and all  federal,  state,  local and
foreign statutes,  laws, judicial  decisions,  regulations,  ordinances,  rules,
judgments,  orders,  decrees,  codes, plans, permits,  licenses and governmental
restrictions,  whether now or hereafter in effect,  relating to the environment,
the  effect of the  environment  on human  health or to  emissions,  discharges,
releases,  manufacturing,  storage,  processing,  distribution,  use, treatment,
disposal, transportation or handling of pollutants,  contaminants,  petroleum or
petroleum  products,  chemicals or industrial,  toxic,  radioactive or hazardous
substances or wastes or the clean-up or other remediation thereof.

          "Exchange Act" means the Securities  Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

                                      -2-
<PAGE>

          "Finally  Determined"  means,  with  respect  to any  Action  or other
matter,  that the  outcome  or  resolution  of such  Action or  matter  has been
judicially  determined  by judgment  or order not  subject to further  appeal or
discretionary  review (or, in the case of any matter  required to be resolved by
arbitration in accordance  with Section 8.11,  that the outcome or resolution of
such matter has been determined thereunder).

          "Group"  means,  as the context  requires,  the SeraNova  Group or the
Intelligroup Group.

          "Indemnified Party" has the meaning set forth in Section 4.4.

          "Indemnifying Party" has the meaning set forth in Section 4.4.

          "Intelligroup Business" means the Internet solutions provider business
conducted primarily by Intelligroup's Internet Solutions Group.

          "Intelligroup  Common  Stock" has the  meaning set forth in the second
recital hereto.

          "Intelligroup  Group" means  Intelligroup and its Subsidiaries  (other
than any member of the SeraNova Group).

          "Intelligroup Indemnitees" has the meaning set forth in Section 4.1.

          "Intelligroup  India" means  Intelligroup  India Private  Limited.,  a
corporation  formed pursuant to the laws of India and a wholly-owned  subsidiary
of Intelligroup.

          "Intelligroup   Liabilities"   means  all  (i)   Liabilities   of  the
Intelligroup  Group under this  Agreement or the other  Distribution  Documents,
(ii)  except  as  otherwise   specifically  provided  herein  or  in  any  other
Distribution  Document,  other Liabilities,  whether arising before, on or after
The Distribution Date, of the parties hereto (or their respective  Subsidiaries)
to the extent such  Liabilities  arise primarily from or relate primarily to the
management or conduct of the  Intelligroup  Business prior to the Effective Time
(the Liabilities listed in clauses (i) and (ii) are collectively  referred to as
"True  Intelligroup  Liabilities")  and  (iii)  that  percentage  of the  Shared
Liabilities  that  are  clearly  attributable,  or  attributable  by  means of a
reasonable apportionment to the Intelligroup Group. The Intelligroup Liabilities
1999 included in  Intelligroup's  quarterly  report on Form 10-Q for the quarter
ended on such date other than the SeraNova Balance Sheet Liabilities.

          "Liabilities"  means  any  and  all  claims,  debts,  liabilities  and
obligations,  absolute or  contingent,  matured or not  matured,  liquidated  or
unliquidated,   accrued  or  unaccrued,  known  or  unknown,  whenever  arising,
including  all costs and  expenses  relating  thereto,  and  including,  without
limitation,   those  debts,  liabilities  and  obligations  arising  under  this
Agreement, any law (including Environmental Laws), rule, regulation, any action,
order, injunction or consent decree of any governmental agency or entity, or any
award of any  arbitrator of any kind,  and those  arising  under any  agreement,
commitment or undertaking.

                                      -3-
<PAGE>

          "Losses" means, with respect to any Person, any and all damage,  loss,
liability and expense  incurred or suffered by such Person  (including,  without
limitation,  reasonable expenses of investigation and reasonable attorneys' fees
and expenses in connection with any and all Actions or threatened Actions).

          "Managing Party" has the meaning set forth in Section 4.6.

          "Nasdaq" means the Nasdaq Stock Market.

          "Netpub"  means  Network  Publishing,  Inc.,  a Utah  corporation  and
wholly-owned subsidiary of Intelligroup.

          "Participating Party" has the meaning set forth in Section 4.6.

          "Person" means an individual,  corporation, limited liability company,
partnership,  association,  trust or other entity or  organization,  including a
governmental or political subdivision or an agency or instrumentality thereof.

          "Pre-Distribution Policy" has the meaning set forth in Section 7.4.

          "Record  Date" means the date  determined by  Intelligroup's  Board of
Directors  (or  determined  by a committee  of such Board of Directors or by any
person pursuant to authority  delegated to such committee or such person) as the
record date for determining the holders of Intelligroup Common Stock entitled to
receive SeraNova Common Stock pursuant to the Distribution.

          "Representatives" has the meaning set forth in Section 6.6.

          "SEC" means the Securities and Exchange Commission.

          "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

          "SeraNova Balance Sheet Liabilities" has the meaning set forth in this
Section 1.1 in the definition of "SeraNova Liabilities."

          "SeraNova   Business"   means  the  business  of  providing   Internet
solutions.

          "SeraNova  Common  Stock"  has the  meaning  set  forth in the  second
recital hereto.

          "SeraNova Form 10" means the  registration  statement on Form 10 filed
by  SeraNova  with  the  SEC  on or  about  January  27,  1999,  to  effect  the
registration of SeraNova Common Stock pursuant to the Exchange Act in connection
with the Distribution,  as such registration  statement may be amended from time
to time.

          "SeraNova  Group"  means  SeraNova  and its  Subsidiaries  as of (and,
except where the context clearly indicates otherwise,  after) the Effective Time
(including all predecessors to

                                      -4-
<PAGE>

such Persons). The members of the SeraNova Group are SeraNova, SeraNova Limited,
NetPub, the Azimuth Companies and Intelligroup India.

          "SeraNova Indemnitees" has the meaning set forth in Section 4.2.

          "SeraNova Information  Statement" means the information statement that
forms a part of the  SeraNova  Form  10 and is to be  sent  to  each  holder  of
Intelligroup Common Stock in connection with the Distribution.

          "SeraNova Liabilities" means all (i) Liabilities of the SeraNova Group
under  this  Agreement  or the  other  Distribution  Documents,  (ii)  except as
otherwise  specifically  provided herein or in any other Distribution  Document,
other Liabilities, whether arising before, on or after the Distribution Date, of
the  parties  hereto  (or their  respective  Subsidiaries)  to the  extent  such
Liabilities  arise  primarily  from or relate  primarily  to the  management  or
conduct of the SeraNova Business (other than Shared Corporate Liabilities) prior
to the  Effective  Time  (the  Liabilities  listed in  clauses  (i) and (ii) are
collectively  referred  to  as  "True  SeraNova  Liabilities")  and  (iii)  that
percentage  of  the  Shared  Liabilities  that  are  clearly  attributable,   or
attributable by means of a reasonable  apportionment  to the SeraNova Group. The
SeraNova  Liabilities  include all Liabilities set forth on the balance sheet of
SeraNova as of September 30, 1999 included in the SeraNova Information Statement
(the "SeraNova Balance Sheet Liabilities").

          "Services  Agreement"  means the  Services  Agreement  by and  between
Intelligroup, Inc. and SeraNova, Inc. dated as of January 1, 2000.

          "Shared  Liability" means any Liability (whether arising before, on or
after  the  Distribution  Date)  of  the  parties  hereto  or  their  respective
Subsidiaries which (i) arises from or relates to the management or conduct prior
to the Effective Time of the businesses of Intelligroup and its Subsidiaries and
(ii) is not a True Intelligroup  Liability or a True SeraNova Liability.  Shared
Liabilities  include,  without  limitation,  Liabilities  listed on Schedule 1.1
hereto.

          "Shared Liability Claim" has the meaning set forth in Section 4.6.

          "Space  Sharing  Agreement"  means the Space Sharing  Agreement by and
between Intelligroup, Inc. and SeraNova, Inc. dated as of January 1, 2000.

          "Subsidiary"  means,  with respect to any Person,  any other entity of
which  securities or other ownership  interests  having ordinary voting power to
elect a majority of the board of directors or other persons  performing  similar
functions are at the time directly or indirectly owned by such Person.

          "Tax" means Tax as such term is defined in the Tax Sharing Agreement.

          "Tax Sharing  Agreement" means the Tax Sharing Agreement  Agreement by
and between Intelligroup, Inc. and SeraNova, Inc. dated as of January 1, 2000.

          "Third-Party Claim" has the meaning set forth in Section 4.5.

                                      -5-
<PAGE>

          "True  Intelligroup  Liabilities"  has the  meaning  set forth in this
Section 1.1 in the definition of "Intelligroup Liabilities."

          "True SeraNova  Liabilities" has the meaning set forth in this Section
1.1 in the definition of "SeraNova Liabilities."

                                   ARTICLE 2.
                 CERTAIN ACTIONS PRIOR TO THE DISTRIBUTION DATE

          Section 2.1.   Certificate of Incorporation; By-laws. Intelligroup and
SeraNova shall take all action necessary so that, at the Distribution  Date, the
Amended and Restated  Certificate of Incorporation and By-laws of SeraNova shall
be in the  forms  attached  hereto  as  Schedule  2.1(a)  and  Schedule  2.1(b),
respectively.

          Section 2.2.   Issuance of Stock.  Prior to or as of the  Distribution
Date,  the parties  hereto  shall take all steps  necessary  to  reclassify  the
outstanding  shares  of  SeraNova  Common  Stock so that,  except  as  otherwise
contemplated by this Agreement,  immediately  prior to or as of the Distribution
Date the  number of shares of  SeraNova  Common  Stock  outstanding  and held by
Intelligroup  shall  be  equal to one to one  (1/1)  the  number  of  shares  of
Intelligroup Common Stock outstanding on the Record Date.

          Section 2.3.   Transfer of  Certain  Other  Assets and  Assumption  of
Liabilities.  Effective  prior to or as of the  Distribution  Date or as soon as
practicable  after the  Distribution  Date,  subject to receipt of any necessary
consents or approvals of third parties or of governmental or regulatory agencies
or authorities  and subject to Section 7.2,  Intelligroup  shall, or shall cause
the relevant member of the Intelligroup  Group to, assign,  contribute,  convey,
transfer and deliver to SeraNova or to one or more members of the SeraNova Group
(a) all of the right,  title and interest of  Intelligroup or such member of the
Intelligroup Group in and to all assets (including all agreements), if any, held
by any  member  of the  Intelligroup  Group  that  relate  predominantly  to the
SeraNova  Business  and (b) all of the  shares of capital  stock of NetPub,  the
Azimuth  Companies,  and  Intelligroup  India and SeraNova shall, or shall cause
such member or members of the SeraNova Group to, assume and take transfer of all
liabilities associated with such assets.

          Section 2.4.   Conduct  of  Business  Pending the  Distribution  Date.
Each  of the  parties  hereto  agrees  that  from  the  date  hereof  until  the
Distribution Date, except as otherwise  contemplated by this Agreement,  it will
use its best efforts to carry on the  Intelligroup  Business  diligently  in the
ordinary course and substantially in the same manner as heretofore conducted and
to preserve intact the business  organization  and goodwill of the  Intelligroup
Business  (including  using its best efforts to cause its  Subsidiaries  to take
such actions.

          Section 2.5.   Refinancing.  Each of the parties hereto agrees that it
will use  reasonable  efforts to obtain,  prior to the  Distribution  Date,  all
necessary  consents,  waivers or amendments to each bank credit agreement,  debt
security or other financing facility to which it and its Subsidiaries is a party
or by  which  it or any of its  Subsidiaries  is  bound,  or to  refinance  such
agreement,  security  or  facility,  in  each  case  on  terms  satisfactory  to
Intelligroup and

                                      -6-
<PAGE>

SeraNova  and  to  the  extent  necessary  to  permit  the  Distribution  to  be
consummated without any material breach of the terms of such agreement, security
or facility.

          Section 2.6.   Registration  and  Listing. Prior to  the  Distribution
Date (a)  Intelligroup  and  SeraNova  shall  prepare the  SeraNova  Information
Statement  and the SeraNova  Form 10.  SeraNova  shall file the SeraNova Form 10
with the SEC.  Intelligroup  and SeraNova shall use reasonable  efforts to cause
the SeraNova Form 10 to become  effective  under the Exchange Act as promptly as
reasonably  practicable.  Intelligroup  and SeraNova  shall prepare the SeraNova
Information  Statement;  and  after  the  SeraNova  Form 10  becomes  effective,
Intelligroup shall cause the SeraNova Information  Statement to be mailed to the
holders of Intelligroup Common Stock as of the Record Date.

          (b)    The  parties  shall use  their best  efforts to  take all  such
action as may be necessary or appropriate  under state securities and "blue sky"
laws in connection with the transactions contemplated by this Agreement.

          (c)    Intelligroup  and  SeraNova shall  prepare,  and SeraNova shall
file and seek to make effective,  an application for the trading of the SeraNova
Common Stock on Nasdaq, subject to official notice of issuance.

          (d)    Intelligroup  and SeraNova shall cooperate in preparing, filing
with the SEC and causing to become  effective  any  registration  statements  or
amendments  thereto  that are  appropriate  to reflect the  establishment  of or
amendments  to any  employee  benefit  and  other  plans  contemplated  by  this
Agreement.

                                   ARTICLE 3.
                                THE DISTRIBUTION

          Section 3.1.   Intelligroup  Board Action; Conditions  Precedent.  (a)
Intelligroup's  Board of  Directors  shall,  in its  discretion,  establish  (or
delegate  authority to establish) the Record Date and the Distribution  Date and
any  appropriate  procedures in connection  with the  Distribution.  In no event
shall the Distribution occur unless the following conditions shall have been and
continue to be satisfied:

          (i)    The transactions  contemplated by  Sections 2.1, 2.2, 2.3, 2.4,
2.5, and 2.6 shall have been consummated in all material respects;

          (ii)   the SeraNova Form l0 shall  have  become  effective  under  the
Exchange Act and no stop order with respect thereto shall be in effect;

          (iii)  the SeraNova Common  Stock to be delivered in the  Distribution
shall have been  approved for trading on Nasdaq,  subject to official  notice of
issuance;

          (iv)   the Board of Directors of Intelligroup  shall be satisfied that
(a) at the time of the  Distribution and after giving effect to the Distribution
and other  related  transactions,  Intelligroup  will not be insolvent (in that,
both before and  immediately  following  the

                                      -7-
<PAGE>

Distribution,  (i) the fair market value of  Intelligroup's  assets would exceed
Intelligroup's  liabilities,   (ii)  Intelligroup  would  be  able  to  pay  its
liabilities as they mature and become absolute and (iii)  Intelligroup would not
have  unreasonably  small  capital with which to engage in its business) and (b)
the Distribution shall be payable in accordance with applicable law;

          (v)    Intelligroup's  Board  of  Directors  shall  have  approved the
Distribution and shall not have abandoned, deferred or modified the Distribution
at any time prior to the Distribution Date;

          (vi)   SeraNova shall take such action as is  necessary  such that its
Board of Directors is comprised of those  individuals  named as directors in the
SeraNova Information Statement.

          (vii)  The  Contribution  Agreement,   Tax  Sharing  Agreement,  Space
Sharing  Agreement  and  Services  Agreement  shall have been duly  executed and
delivered by the parties thereto;

          (viii) All authorizations,  consents,  approvals and clearances of all
federal,  state, local and foreign governmental  agencies required to permit the
valid  consummation  by the parties hereto of the  transactions  contemplated by
this Agreement  shall have been obtained;  and no such  authorization,  consent,
approval or clearance  shall contain any conditions  which would have a material
adverse  effect on (a) the  Intelligroup  Business,  (b) the assets,  results of
operations or financial  condition of the Intelligroup Group, in each case taken
as a whole,  or (c) the  ability of  Intelligroup  or  SeraNova  to perform  its
obligations under this Agreement;  and all statutory requirements for such valid
consummation shall have been fulfilled;

          (ix)   No  preliminary or permanent injunction or  other order, ruling
or  decree  issued  by a court of  competent  jurisdiction  or by a  government,
regulatory  or  administrative  agency  or  commission,  and no  statute,  rule,
regulation or executive order promulgated or enacted by governmental  authority,
shall be in effect preventing the payment of the Distribution;

          (x)    All  necessary  consents,  amendments or  waivers to  each bank
credit agreement,  debt security or other financing facility to which any member
of the Intelligroup  Group is a party or by which any such member is bound shall
have been obtained, or each such agreement, security or facility shall have been
refinanced,  in each case on terms satisfactory to Intelligroup and SeraNova and
to the extent necessary to permit the Distribution to be consummated without any
material breach of the terms of such agreement, security or facility; and

          (xi)   Intelligroup  shall   have  received  an  opinion  from  Arthur
Andersen  LLP,  substantially  in the form attached  hereto as Exhibit  Schedule
3.1(xi) that the  Distribution  should be tax-free to  Intelligroup  and to U.S.
stockholders of the Intelligroup Common Stock.

          (b)    Any   determination   made   by  the   Board  of  Directors  of
Intelligroup  in good  faith  prior  to the  Distribution  Date  concerning  the
satisfaction or waiver of any or all of the conditions set forth in this Section
3.1 shall be conclusive.

                                      -8-
<PAGE>

          Section 3.2.   The Distribution.  Subject to  the terms and conditions
set forth in this Agreement,  (i) prior to the Distribution  Date,  Intelligroup
shall deliver to the Distribution  Agent for the benefit of holders of record of
Intelligroup  Common Stock on the Record Date, stock  certificates,  endorsed by
Intelligroup  in  blank,  representing  all of the  then-outstanding  shares  of
SeraNova  Common Stock owned by  Intelligroup,  (ii) the  Distribution  shall be
effective as of the close of business,  New York City time, on the  Distribution
Date and (iii) Intelligroup shall instruct the Distribution Agent to distribute,
on or as soon as  practicable  after the  Distribution  Date,  to each holder of
record of Intelligroup  Common Stock as of the Record Date one share of SeraNova
Common Stock for each one share of Intelligroup  Common Stock so held.  SeraNova
agrees to provide  all  certificates  for shares of SeraNova  Common  Stock that
Intelligroup  shall  require  (after  giving  effect to Section 3.4) in order to
effect the Distribution.

          Section 3.3.   Stock  Dividends  to  Intelligroup.  On or prior to the
Distribution Date,  SeraNova shall issue to Intelligroup as a stock dividend the
number  of  shares  of  SeraNova   Common   Stock  as  required  to  effect  the
Distribution,  as certified by the Distribution Agent. In connection  therewith,
Intelligroup  shall deliver to SeraNova for cancellation  the share  certificate
currently held by it representing SeraNova Common Stock.

          Section 3.4.   Fractional   Shares.   No   certificates   representing
fractional   shares  of  SeraNova  Common  Stock  will  be  distributed  in  the
Distribution. The Distribution Agent will be directed to determine the number of
whole shares and fractional  shares of SeraNova  Common Stock  allocable to each
holder  of   Intelligroup   Common  Stock  as  of  the  Record  Date.  Upon  the
determination by the Distribution  Agent of such number of fractional shares, as
soon as practicable after the Distribution Date, the Distribution  Agent, acting
on behalf of the holders thereof,  shall sell such fractional shares for cash on
the open market and shall disburse the appropriate portion of the resulting cash
proceeds  (net of any costs of selling  the  fractional  shares) to each  holder
entitled thereto.

                                   ARTICLE 4.
                                 INDEMNIFICATION

          Section 4.1.   SeraNova Indemnification of the Intelligroup Group. (a)
Subject to Section  4.3,  on and after the  Distribution  Date,  SeraNova  shall
indemnify,  defend and hold harmless the  Intelligroup  Group and the respective
directors, officers, employees and Affiliates of each Person in the Intelligroup
Group  (the  "Intelligroup  Indemnitees")  from and  against  any and all Losses
incurred or suffered by any of the Intelligroup  Indemnitees (1) arising out of,
or due to the  failure of any Person in the  SeraNova  Group to pay,  perform or
otherwise discharge,  any of the SeraNova Liabilities and (2) arising out of the
breach  by any  member  of the  SeraNova  Group  of any  obligation  under  this
Agreement or any of the other Distribution  Documents.  This  indemnification is
not intended to, and should not be construed as, limiting or amending SeraNova's
indemnification obligations defined in any of the other Distribution Documents.

          (b)    Subject  to Section 4.3,  SeraNova  shall indemnify, defend and
hold harmless each of the Intelligroup  Indemnitees and each Person, if any, who
controls any Intelligroup  Indemnitee within the meaning of either Section 15 of
the  Securities  Act or Section

                                      -9-
<PAGE>

20 of the Exchange Act from and against any and all Losses  caused by any untrue
statement  or alleged  untrue  statement  of a material  fact  contained  in the
SeraNova Form 10 or any amendment thereof or the SeraNova Information  Statement
(as amended or  supplemented),  or caused by any omission or alleged omission to
state therein a material fact necessary to make the statements  therein,  in the
light of the  circumstances  under which they were made, not misleading,  except
insofar as such  Losses are caused by any such untrue  statement  or omission or
alleged  untrue  statement  or  omission  based upon  information  furnished  to
SeraNova in writing by Intelligroup expressly for use therein.

          Section 4.2.   Intelligroup  Indemnification  of SeraNova  Group.  (a)
Subject to Section 4.3, on and after the Distribution  Date,  Intelligroup shall
indemnify,  defend  and hold  harmless  the  SeraNova  Group and the  respective
directors,  officers,  employees  and  Affiliates of each Person in the SeraNova
Group (the "SeraNova  Indemnitees") from and against any and all Losses incurred
or suffered by any of the  SeraNova  Indemnitees,  (1) arising out of, or due to
the failure of any Person in the Intelligroup Group to pay, perform or otherwise
discharge,  any of the Intelligroup  Liabilities and (2) arising from any breach
by any  member of the  Intelligroup  Group of any  obligation  made  under  this
Agreement or any of the other Distribution  Documents.  This  indemnification is
not  intended  to,  and  should  not  be  construed  as,  limiting  or  amending
Intelligroup's   indemnification   obligations  defined  in  any  of  the  other
Distribution Documents.

          (b)    Subject to  Section 4.3, Intelligroup  shall indemnify,  defend
and hold harmless each of the SeraNova  Indemnitees and each Person, if any, who
controls any SeraNova  Indemnitee within the meaning of either Section 15 of the
Securities  Act or Section 20 of the  Exchange  Act from and against any and all
Losses caused by any untrue  statement or alleged untrue statement of a material
fact  contained  in the  SeraNova  Form 10 or any  amendment  thereof  or in the
SeraNova  Information  Statement (as amended or supplemented),  or caused by any
omission or alleged  omission to state therein a material fact necessary to make
the statements  therein, in the light of the circumstances under which they were
made, not misleading,  in each case to the extent, but only to the extent,  that
such  Losses are caused by any such  untrue  statement  or  omission  or alleged
untrue  statement or omission  based upon  information  furnished to SeraNova in
writing by Intelligroup expressly for use therein.

          Section 4.3.   Insurance; Third-Party Obligations. Any indemnification
pursuant to Section 4.1 or 4.2 shall be paid net of the amount of any  insurance
or other  amounts  that would be payable by any third  party to the  Indemnified
Party (as defined below) in the absence of this Agreement  (irrespective of time
of receipt of such  insurance  or other  amounts) and net of any Tax Benefit (as
defined in the Tax Sharing  Agreement) to the Indemnified Party  attributable to
the relevant payment or Liability. It is expressly agreed that no insurer or any
other third party shall be (i) entitled to a benefit it would not be entitled to
receive  in  the  absence  of the  foregoing  indemnification  provisions,  (ii)
relieved of the  responsibility  to pay any claims to which it is  obligated  or
(iii)  entitled  to any  subrogation  rights  with  respect  to  any  obligation
hereunder.

          Section 4.4.   Notice  and  Payment  of  Claims.  If any  Intelligroup
Indemnitee or SeraNova  Indemnitee (the "Indemnified  Party") determines that it
is or may be entitled to indemnification by any party (the "Indemnifying Party")
under Article 4 (other than in connection with any Action subject to Section 4.5
or 4.6), the Indemnified Party shall deliver to the

                                      -10-
<PAGE>

Indemnifying  Party  a  written  notice  specifying,  to the  extent  reasonably
practicable,  the basis for its claim for  indemnification  and the  amount  for
which  the  Indemnified   Party  reasonably   believes  it  is  entitled  to  be
indemnified. Within 30 days after receipt of such notice, the Indemnifying Party
shall  pay the  Indemnified  Party  such  amount  in cash or  other  immediately
available  funds  unless  the  Indemnifying  Party  objects  to  the  claim  for
indemnification  or the amount thereof.  If the Indemnifying Party does not give
the  Indemnified  Party written  notice  objecting to such  indemnity  claim and
setting forth the grounds  therefor within such 30-day period,  the Indemnifying
Party shall be deemed to have  acknowledged its liability for such claim and the
Indemnified Party may exercise any and all of its rights under applicable law to
collect such amount. In the event of such a timely objection by the Indemnifying
Party, the amount, if any, that is Finally  Determined to be required to be paid
by the  Indemnifying  Party in respect of such indemnity  claim shall be paid by
the  Indemnifying  Party to the  Indemnified  Party in cash within 15 days after
such indemnity claim has been so Finally Determined.

          Section 4.5.   Notice  and Defense  of Third-Party  Claims Other  Than
Those for Shared  Liabilities.  Promptly following the earlier of (i) receipt of
notice of the  commencement  by a third party of any Action against or otherwise
involving  any  Indemnified  Party or (ii) receipt of  information  from a third
party alleging the existence of a claim against an Indemnified  Party, in either
case,  with  respect to which  indemnification  may be sought  pursuant  to this
Agreement  (a  "Third-Party  Claim"),  the  Indemnified  Party  shall  give  the
Indemnifying Party written notice thereof.  The failure of the Indemnified Party
to  give  notice  as  provided  in  this  Section  4.5  shall  not  relieve  the
Indemnifying Party of its obligations under this Agreement, except to the extent
that the Indemnifying Party is prejudiced by such failure to give notice. Within
30 days after receipt of such notice,  the Indemnifying  Party may (i) by giving
written notice thereof to the Indemnified Party,  acknowledge liability for such
indemnification  claim and at its  option  elect to assume  the  defense of such
Third-Party  Claim at its sole cost and  expense or (ii) object to the claim for
indemnification  set forth in the  notice  delivered  by the  Indemnified  Party
pursuant  to the  first  sentence  of this  Section  4.5;  provided  that if the
Indemnifying Party does not within such 30-day period give the Indemnified Party
written  notice  objecting to such  indemnification  claim and setting forth the
grounds  therefor,  the Indemnifying  Party shall be deemed to have acknowledged
its liability for such  indemnification  claim.  If the  Indemnifying  Party has
acknowledged liability and elected to assume the defense of a Third-Party Claim,
(x) the defense shall be conducted by counsel retained by the Indemnifying Party
and  reasonably  satisfactory  to  the  Indemnified  Party,  provided  that  the
Indemnified Party shall have the right to participate in such proceedings and to
be  represented by counsel of its own choosing at the  Indemnified  Party's sole
cost and expense;  and (y) the  Indemnifying  Party may settle or compromise the
Third-Party  Claim without the prior written consent of the Indemnified Party so
long as such  settlement  includes an  unconditional  release of the Indemnified
Party from all claims that are the subject of such Third-Party  Claim,  provided
that the  Indemnifying  Party may not agree to any such  settlement  pursuant to
which  any  remedy  or  relief,  other  than  monetary  damages  for  which  the
Indemnifying  Party  shall be  responsible  hereunder,  shall be  applied  to or
against  the  Indemnified  Party,  without  the  prior  written  consent  of the
Indemnified  Party,  which consent shall not be  unreasonably  withheld.  If the
Indemnifying  Party does not assume the defense of a Third-Party Claim for which
it has acknowledged  liability for  indemnification  hereunder,  the Indemnified
Party  will  act in  good  faith  with  respect  thereto  and  may  require  the
Indemnifying  Party  to

                                      -11-
<PAGE>

reimburse it on a current basis for its  reasonable  expenses of  investigation,
reasonable  attorneys' fees and reasonable  out-of-pocket  expenses  incurred in
defending  against such Third-Party  Claim and the  Indemnifying  Party shall be
bound by the result  obtained  with respect  thereto by the  Indemnified  Party;
provided  that the  Indemnifying  Party  shall not be liable for any  settlement
effected without its consent,  which consent shall not be unreasonably withheld.
If the  Indemnifying  Party  objects  to a claim  for  indemnification,  (a) the
Indemnifying  Party  shall not be  entitled to assume the defense of the related
Third-Party  Claim,  (b) the  Indemnified  Party  shall act in good  faith  with
respect to such Third-Party Claim, (c) the dispute as to whether the Indemnified
Party is entitled to  indemnification  hereunder shall be resolved in accordance
with Section 8.11 if it is determined that the Indemnified  Party is entitled to
indemnification  hereunder,  the Indemnifying  Party will be responsible for all
Losses of the  Indemnified  Party  arising  from  such  Third-Party  Claim.  The
Indemnifying  Party shall pay to the  Indemnified  Party in cash the amount,  if
any, for which the  Indemnified  Party is entitled to be  indemnified  hereunder
within 15 days after such Third-Party Claim has been Finally Determined,  in the
case of a Third-Party Claim as to which the Indemnifying  Party has acknowledged
liability or, in the case of any Third-Party  Claim as to which the Indemnifying
Party has not  acknowledged  liability,  within 15 days after such  Indemnifying
Party's  objection to liability  hereunder  has been  Finally  Determined  to be
unfounded.  This  Section 4.5 shall  govern all claims  under this Article 4 for
indemnification  against Third-Party Claims except Third-Party Claims in respect
of Shared Liabilities, as to which Section 4.6 shall govern.

          Section 4.6.   Notice  and  Defense of  Third-Party  Claims for Shared
Liabilities.  Promptly  following  the  earlier of (i)  receipt of notice of the
commencement of a Third-Party  Claim in respect of a Shared Liability (a "Shared
Liability Claim") or (ii) receipt of information from a third party alleging the
existence  of a Shared  Liability  Claim,  the party  receiving  such  notice or
information shall give the other parties written notice thereof.  The failure of
the party  receiving  notice or information  with respect to a Shared  Liability
Claim in  respect  to give  notice as  provided  in this  Section  4.6 shall not
relieve another party of its  indemnification  obligations  under this Agreement
with respect thereto, except to the extent that such party is prejudiced by such
failure to give notice.

          Each party hereto shall be entitled to  participate  in the defense of
such  Shared  Liability  Claim if either  the  Shared  Liability  Claim has been
asserted or  threatened  against  such party or such party has  acknowledged  in
writing its  obligation to bear a portion of the potential  liability in respect
of such Shared Liability  Claim.  (Each party that is so entitled to participate
in the  defense  of such  Shared  Liability  Claim is  referred  to  herein as a
"Participating  Party".)  Without  limiting  the terms of  Sections  4.1(a)  and
4.2(a),  the party  against whom the Shared  Liability  Claim is made shall have
management and administrative  responsibility in respect thereof;  provided that
if SeraNova is a Participating Party it shall have management and administrative
responsibility in respect thereof.  The party responsible for the management and
administration  of a  Shared  Liability  Claim  is  referred  to  herein  as the
"Managing  Party" and such management and  administrative  responsibility  shall
entail the defense of such Shared  Liability  Claim,  negotiation with claimants
and potential claimants (subject to the limitations in the following  paragraph)
and other reasonably related activities. The Managing Party shall retain counsel
selected by it and reasonably  satisfactory to the other Participating  Parties,
provided  that  the  other  Participating   Parties  shall  have  the  right  to
participate in such proceedings and to be

                                      -12-
<PAGE>

represented  by counsel of its or their own  choosing  at its or their sole cost
and expense.  The legal or other expenses in respect of a Shared Liability Claim
incurred by or on behalf of any person other than the  Managing  Party shall not
be Losses for purposes of this  Agreement.  All parties  hereto shall  cooperate
with the  Managing  Party and each other in the defense or  prosecution  of such
Shared Liability Claim.

          In no event will the party  against which the claim was made admit any
liability  with  respect  to, or settle,  compromise  or  discharge,  any Shared
Liability  Claim without the prior written  consent of each other  Participating
Party;  provided,  however,  that the party against which the claim was made may
settle or  compromise  the Shared  Liability  Claim  without  the prior  written
consent of the other  Participating  Parties if such party  releases each of the
other Participating  Parties from their respective  indemnification  obligations
hereunder  with  respect to such  Shared  Liability  Claim and such  settlement,
compromise  or  discharge  would  not  otherwise   adversely  affect  the  other
Participating  Parties.  The Managing Party shall act in good faith with respect
to the Shared  Liability Claim and may require the other parties to reimburse it
on a current  basis for its  reasonable  expenses of  investigation,  reasonable
attorneys'  fees and  reasonable  out-of-pocket  expenses  incurred in defending
against such Shared Liability Claim, and the other parties shall be bound by the
result obtained with respect thereto;  provided that a Participating Party shall
not be liable for any  settlement  effected  without its consent,  which consent
shall not be unreasonably withheld. If a party objects to, or does not within 30
                                    ------------------        ------------------
days of notice acknowledge in writing its indemnification  obligations hereunder
----
in respect of a portion of the liability for a Shared  Liability Claim, (a) such
party  shall not be  entitled  to  participate  in the  defense  of such  Shared
Liability  Claim,  and (b) the  dispute as to whether  such party is required to
provide  indemnification  hereunder  with respect  thereto  shall be resolved in
accordance  with Section 8.11 hereof.  Each  Indemnifying  Party in respect of a
Shared Liability Claim shall pay to the Indemnified Party in cash the amount, if
any, for which the Indemnified Party is entitled to be indemnified  hereunder by
such  Indemnifying  Party within 15 days after such Shared  Liability  Claim has
been Finally Determined, in the case of a Shared Liability Claim as to which the
Indemnifying  Party has  acknowledged  liability  or, in the case of any  Shared
Liability  Claim  as to  which  the  Indemnifying  Party  has  not  acknowledged
liability, within 15 days after such Indemnifying Party's objection to liability
hereunder has been Finally Determined to be unfounded.

          Section 4.7.   Contribution.  If for any  reason  the  indemnification
provided for in Section 4.1 or 4.2 is unavailable to any  Indemnified  Party, or
insufficient to hold it harmless,  then the Indemnifying  Party shall contribute
to the  amount  paid or payable  by such  Indemnified  Party as a result of such
Losses in such  proportion as is appropriate  to reflect all relevant  equitable
considerations.

          Section 4.8.   Non-Exclusivity of Remedies.  The remedies provided for
in this Article 4 are not  exclusive  and shall not limit any rights or remedies
which may otherwise be available to any Indemnified Party at law or in equity.

                                      -13-
<PAGE>

                                   ARTICLE 5.
                                EMPLOYEE MATTERS

          Section 5.1.   Employee   Matters   Generally.   (a)   Stock   options
outstanding under the Intelligroup  Equity-Based  Plans will be adjusted so that
following the  Distribution the exercise price of such options shall be adjusted
to take into account the Distribution and to ensure that the aggregate intrinsic
value of the adjusted  Intelligroup  options after the record date in respect of
the Distribution is equal to or less than, the aggregate  intrinsic value of the
related  Intelligroup  option  prior  to  the  record  date  in  respect  of the
Distribution.

          (b)    In partial consideration for  all  Services  provided  or to be
provided  (including  by any member of the  SeraNova  Group to any member of the
Intelligroup  Group or by any member of the Intelligroup  Group to any member of
the SeraNova Group) and other consideration  provided pursuant to this Agreement
(including  the transfers of assets and  assumptions  of liabilities as provided
herein),  SeraNova and  Intelligroup  shall use their best efforts to accomplish
the foregoing  including,  but not limited to, making such grants of options and
issuing such shares of  Intelligroup  Common Stock and SeraNova  Common Stock as
may be required hereunder.

          (c)    Intelligroup  options held  by SeraNova employees will cease to
vest beyond those options  vested as of the  Distribution  Date.  Further,  such
vested options will be caused to expire 90 days after the Distribution Date.

          (d)    Retained  Employees  (as  defined in  Section  5(a)(ii) of  the
Services  Agreement  executed  contemporaneously  with  the  execution  of  this
Distribution  Agreement)  to whom  Intelligroup  options  have  previously  been
granted  will be  required  to  forfeit  such  options  as  follows,  or will be
ineligible for grants of SeraNova options:

          (i)    as of the  Distribution  Date,  all unvested  options  will  be
forfeited immediately; and

          (ii)   vested  options as of the Distribution  Date, will be forfeited
if not exercised within 90 days of such date.

                                   ARTICLE 6.
                              ACCESS TO INFORMATION

          Section 6.1.   Provision of Corporate Records.  Prior to or as soon as
practicable  following the  Distribution  Date, each Group shall provide or make
available to each other Group all documents,  contracts, books, records and data
(including but not limited to minute books, stock registers,  stock certificates
and documents of title) in its  possession  relating to such other Group or such
other  Group's  business  and  affairs;  provided  that if any  such  documents,
contracts,  books,  records or data  relate to both Groups or the  business  and
operations of both Groups,  each such Group shall  provide or make  available to
the other Group true and complete  copies of such documents,  contracts,  books,
records or data.

                                      -14-
<PAGE>

          Section 6.2.   Access to Information. From and after the  Distribution
Date, each Group shall afford promptly to each other Group and its  accountants,
counsel and other  designated  representatives  reasonable  access during normal
business hours to all documents,  contracts,  books, records,  computer data and
other  data in such  Group's  possession  relating  to such  other  Group or the
business  and  affairs  of such other  Group  (other  than data and  information
subject to an  attorney/client  or other  privilege),  insofar as such access is
reasonably  required by such other Group,  including,  without  limitation,  for
audit, accounting, litigation and disclosure and reporting purposes.

          Section 6.3.   Litigation Cooperation. Each Group shall use reasonable
efforts to make  available,  upon  written  request,  its  directors,  officers,
employees  and  representatives  as  witnesses  to  each  other  Group  and  its
accountants, counsel, and other designated representatives,  and shall otherwise
cooperate with each other Group, to the extent reasonably required in connection
with any legal,  administrative or other proceedings  arising out of any Group's
business and operations prior to the  Distribution  Date in which the requesting
party may from time to time be involved.

          Section  6.4.  Reimbursement.  Each  Group  providing  information  or
witnesses to any other Group,  or otherwise  incurring any expense in connection
with  cooperating,  under  Sections 6.1, 6.2 or 6.3 shall be entitled to receive
from the recipient thereof, upon the presentation of invoices therefor,  payment
for all costs and  expenses  as may be  reasonably  incurred in  providing  such
information, witnesses or cooperation.

          Section 6.5.   Retention  of Records. Except as otherwise  required by
law or agreed to in writing,  each party  shall,  and shall cause the members of
its respective  Group to, retain all  information  relating to any other Group's
business and  operations  in  accordance  with the past  practice of such party.
Notwithstanding the foregoing, any party may destroy or otherwise dispose of any
such  information  at any time,  provided  that,  prior to such  destruction  or
disposal,  (i) such party shall  provide  not less than 90 days'  prior  written
notice to the other parties, specifying the information proposed to be destroyed
or disposed of, and (ii) if a recipient of such notice shall  request in writing
prior to the  scheduled  date for such  destruction  or disposal that any of the
information  proposed  to be  destroyed  or  disposed  of be  delivered  to such
requesting party, the party proposing the destruction or disposal shall promptly
arrange for the  delivery of such of the  information  as was  requested  at the
expense of the requesting party or parties.

          Section 6.6.   Confidentiality.  Each party shall hold and shall cause
its  Affiliates and its and their  respective  directors,  officers,  employees,
agents,   consultants  and  advisors   ("Representatives")  to  hold  in  strict
confidence all information  concerning any other party or its Affiliates  unless
(i) such  person is  compelled  to  disclose  such  information  by  judicial or
administrative  process or, in the opinion of its counsel, by other requirements
of law or (ii)  such  information  can be shown to have  been (A) in the  public
domain  through no fault of such party or its  Representatives  or (B)  lawfully
acquired  after the  Distribution  Date on a  non-confidential  basis from other
sources. Notwithstanding the foregoing, such party may disclose such information
to its Representatives so long as such Persons are informed by such party of the
confidential  nature of such information and are directed by such party to treat
such  information

                                      -15-
<PAGE>

confidentially.  If a  party  or  any  of its  Representatives  becomes  legally
compelled to disclose any documents or information  subject to this Section 6.6,
such party will promptly  notify the other  applicable  party so that such other
party may seek a protective  order or other remedy or waive compliance with this
Section 6.6. If no such  protective  order or other remedy is obtained or waiver
granted,  the party subject to compulsion  will furnish only that portion of the
information which it is advised by counsel is legally required and will exercise
its reasonable efforts to obtain reliable assurance that confidential  treatment
will be accorded such  information.  Each party agrees to be responsible for any
breach of this Section 6.6 by its Representatives.

          Section 6.7.   Inapplicability   of   Article  6    to  Tax   Matters.
Notwithstanding anything to the contrary in Article 6, Article 6 shall not apply
with respect to information, records and other matters relating to Taxes, all of
which shall be governed by the Tax Sharing Agreement.

                                   ARTICLE 7.
                            CERTAIN OTHER AGREEMENTS

          Section 7.1.   Further  Assurances  and  Consents.  In addition to the
actions  specifically  provided  for  elsewhere in this  Agreement,  each of the
parties hereto shall use its  reasonable  efforts to take, or cause to be taken,
all actions, and to do, or cause to be done, all things,  reasonably  necessary,
proper or  advisable  under  applicable  laws,  regulations  and  agreements  or
otherwise to consummate and make effective the transactions contemplated by this
Agreement,  including but not limited to using its reasonable  efforts to obtain
any consents and approvals and to make any filings and applications necessary or
desirable  in  order  to  consummate  the  transactions   contemplated  by  this
Agreement;  provided  that  no  party  hereto  shall  be  obligated  to pay  any
consideration therefor (except for filing fees and other similar charges) to any
third party from whom such  consents or approvals  are  requested or to take any
action or omit to take any action if the taking of or the  omission to take such
action would be unreasonably  burdensome to the party,  its Group or its Group's
business.

          Section 7.2.   Intellectual  Property Rights  and Licenses.  Except as
set forth in that certain  Contribution  Agreement by and between  Intelligroup,
Inc. and SeraNova,  Inc.  dated as of January 1, 2000,  none of the Groups shall
have any  right  or  license  in or to any  technology,  software,  intellectual
property (including any trademark, service mark, patent or copyright),  know-how
or other proprietary right owned, licensed or held for use by another Group.

          Section 7.3.   Insurance. Notwithstanding anything contained herein or
in any Distribution Document to the contrary, nothing contained herein or in any
Distribution  Document  shall  constitute  an  assignment  or  transfer  of  any
insurance  policy or the rights  thereunder to the extent any such assignment or
transfer would cause the coverage  under such policy to be reduced.  If any such
assignment  or transfer  would result in such a reduction,  the party that would
have assigned or transferred such rights will enforce the rights  thereunder for
the benefit of the party to whom such  assignment  or  transfer  would have been
made but for the effect of the  preceding  sentence  and shall hold any  payment
received in respect thereof in trust for such party. Each party hereunder hereby
appoints  Intelligroup  as its agent to administer any claim it or any

                                      -16-
<PAGE>

member of its Group may have under any insurance  policy held by Intelligroup or
any  of  its   Subsidiaries   prior   to  the   Distribution   Date   (each,   a
"Pre-Distribution Policy") with respect to any claim or occurrence arising prior
to the Distribution  Date. If, as a result of any retrospective loss adjustment,
stop loss,  deductible,  coverage limit or other similar arrangement,  any party
(or any member of its Group) is  required  to make any payment in respect of, or
is not paid the full amount it may claim under, any Pre-Distribution Policy, the
amount of any such  payment or shortfall  shall be  allocated  among the parties
hereto in an equitable manner as determined in good faith by SeraNova,  and each
party hereto shall make such  payments to the other  parties  hereto as shall be
required in order to effect such equitable allocation.

                                   ARTICLE 8.
                                  MISCELLANEOUS

          Section 8.1.   Notices.  All notices and other  communications  to any
party  hereunder  shall be in  writing  (including  telex,  telecopy  or similar
writing) and shall be deemed given when received addressed as follows:

          If to Intelligroup, to:    Intelligroup, Inc.
                                     499 Thornall Street
                                     Edison, NJ 08837
                                     Telecopy: 732-362-2100
                                     Attention: Ashok Pandey,

          Copy to:                   Buchanan Ingersoll Professional Corporation
                                     650 College Road East
                                     Princeton, NJ 08540
                                     Telecopy: 609-520-0360
                                     Attention: David J. Sorin

          If to SeraNova, to:        SeraNova, Inc.
                                     c/o Intelligroup, Inc.
                                     499 Thornall Street
                                     Edison, NJ 08837
                                     Telecopy: 732-362-2100
                                     Attention:  Rajkumar Koneru,

          Copy to:                   Buchanan Ingersoll Professional Corporation
                                     650 College Road East
                                     Princeton, NJ 08540
                                     Telecopy: 609-520-0360
                                     Attention: David J. Sorin

          Any party may, by written  notice so delivered  to the other  parties,
change the address to which delivery of any notice shall thereafter be made. All
such notices  shall be

                                      -17-
<PAGE>

deemed  received  on the date of receipt by the  recipient  thereof if  received
prior to 5 p.m.  in the place of receipt  and such day is a business  day in the
place of receipt.  Otherwise,  any such notice  shall be deemed not to have been
received until the next succeeding business day in the place of receipt.

          Section 8.2.   Amendments;  No  Waivers.  (a)  Any  provision  of this
Agreement may be amended or waived if, and only if, such  amendment or waiver is
in  writing  and  signed,  in the  case of an  amendment,  by  Intelligroup  and
SeraNova, or in the case of a waiver, by the party against whom the waiver is to
be effective.

          (b)    No failure or delay by any party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof nor shall any single or
partial  exercise  thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  The rights and remedies herein
provided  shall be  cumulative  and not  exclusive  of any  rights  or  remedies
provided by law.

          Section 8.3.   Expenses.  Except as specifically provided otherwise in
this Agreement or the Tax Sharing Agreement (including,  without limitation,  in
Article 4, Sections  6.4,  6.5, and 8.7(c) and Schedule 5.1 of this  Agreement),
all costs and expenses  incurred  after the date hereof in  connection  with the
preparation,  execution  and  delivery  of the  Distribution  Documents  and the
consummation of the Distribution and the other transactions  contemplated hereby
(including the fees and expenses of all counsel,  accountants  and financial and
other  advisors  of each Group in  connection  therewith,  and all  expenses  in
connection with preparation, filing and printing of the SeraNova Form 10 and the
SeraNova Information  Statement) shall be Shared Liabilities;  provided (i) that
Intelligroup  shall be  responsible  for and pay the  fees,  expenses  and other
amounts payable to the lenders in respect of  Intelligroup's  credit  facilities
and all other fees and expenses incurred in connection  therewith (including the
fees and expenses of  Intelligroup's  counsel in connection with the preparation
and  negotiation of all  documentation  relating to such credit  facilities) and
(ii) that the SeraNova Group shall be responsible for and pay the fees, expenses
and other  amounts  payable to the lenders  under the  SeraNova  Group's  credit
facilities  and all other fees and  expenses  incurred in  connection  therewith
(including  the fees and expenses of counsel to the SeraNova Group in connection
with the  preparation  and  negotiation  of all  documentation  relating to such
credit facilities).

          Section 8.4.   Successors  and  Assigns.  The   provisions   of   this
Agreement  shall be binding upon and inure to the benefit of the parties  hereto
and their respective successors and assigns;  provided that no party may assign,
delegate  or  otherwise  transfer  any of its rights or  obligations  under this
Agreement without the consent of the other parties hereto.

          Section 8.5.   Governing  Law.  This  Agreement  shall be construed in
accordance  with and governed by the law of the State of New Jersey  (other than
the laws  regarding  choice of laws and  conflicts  of laws) as to all  matters,
including matters of validity, construction, effect, performance and remedies.

          Section 8.6.   Entire   Agreement.   This  Agreement  and   the  other
Distribution  Documents  constitute the entire understanding of the parties with
respect  to the  subject  matter

                                      -18-
<PAGE>

hereof and  thereof  and  supersede  all prior  agreements,  understandings  and
negotiations,  both  written and oral,  between the parties  with respect to the
subject  matter  hereof and thereof.  No  representation,  inducement,  promise,
understanding,  condition  or  warranty  not set  forth  herein  or in the other
Distribution Documents has been made or relied upon by any party hereto. Neither
this  Agreement nor any  provision  hereof is intended to confer upon any Person
other than the parties  hereto any rights or remedies  hereunder.  To the extent
that the  provisions of this Agreement are  inconsistent  with the provisions of
any other  Distribution  Document,  the  provisions  of such other  Distribution
Document shall prevail.

          Section 8.7.   Tax Sharing Agreement;  Setoff; Certain Transfer Taxes.
(a) Except as otherwise  provided  herein,  this Agreement  shall not govern any
Tax,  and any and all  claims,  losses,  damages,  demands,  costs,  expenses or
liabilities  relating to Taxes shall be exclusively  governed by the Tax Sharing
Agreement.

          (b)    If,  at  the  time any  party hereto  is required  to make  any
payment to any other  party  under this  Agreement,  the party  entitled  to the
payment  owes the obligor  any amount  under this  Agreement  or the Tax Sharing
Agreement, then such amounts shall be offset and the excess shall be paid by the
party liable for such excess.

          (c)    The party or parties that is or are required by applicable  law
to file any Return (as defined in the Tax Sharing Agreement) or make any payment
with  respect to any such Tax shall do so, and the other party or parties  shall
cooperate with respect  thereto as necessary.  The  non-paying  party or parties
shall  reimburse the paying party in  accordance  with this Section 8.7 within 5
business days after it or they receive notice of the payment of such Tax.

          Section 8.8.   Existing Arrangements. Except as otherwise contemplated
hereby or as set forth on Schedule 8.8, all prior  agreements and  arrangements,
including  those  relating to goods,  rights or services  provided or  licensed,
between  any  member of one  Group and any  member  of  another  Group  shall be
terminated effective as of the Distribution Date, if not theretofore terminated.
No such  agreements or  arrangements  shall be in effect after the  Distribution
Date unless embodied in the Distribution Documents or set forth in Schedule 8.8.

          Section 8.9.   Termination Prior to the Distribution. The Intelligroup
Board  of  Directors  may at any  time  prior to the  Distribution  abandon  the
Distribution  and, by notice to SeraNova,  terminate this Agreement  (whether or
not the Intelligroup Board of Directors has theretofore  approved this Agreement
and/or the Distribution).

          Section 8.10.  Captions.   The   captions  herein   are  included  for
convenience  of  reference  only and shall be  ignored  in the  construction  or
interpretation hereof.

          Section 8.11.  Arbitration;   Dispute   Resolution.  Unless  otherwise
provided for in this Agreement,  any conflict or disagreement arising out of the
interpretation,  implementation  or  compliance  with  the  provisions  of  this
Agreement  shall be finally  settled  pursuant  to the  provisions  of Article 6
(Arbitration;  Dispute Resolution) of that certain Contribution Agreement by and
between Intelligroup, Inc. and SeraNova, Inc. dated as of January 1, 2000, which
provisions are incorporated herein by reference.

                                      -19-
<PAGE>

          Section  8.12. Severability.  In  the  event  any  one or more of  the
provisions  contained  in this  Agreement  should be held  invalid,  illegal  or
unenforceable in any respect,  the validity,  legality and enforceability of the
remaining  provisions  contained  herein  and  therein  shall  not in any way be
affected  or  impaired  thereby.  The  parties  shall  endeavor  in  good  faith
negotiations to replace the invalid,  illegal or unenforceable  provisions,  the
economic  effect of which  comes as close as  possible  to that of the  invalid,
illegal or unenforceable provisions.

                                      -20-
<PAGE>

          IN WITNESS  WHEREOF the parties  hereto have caused this  Distribution
Agreement to be duly executed by these respective  authorized officers as of the
date first above written.

                                                INTELLIGROUP, INC.

                                                By:  /s/ Ashok Pandey
                                                   -----------------------------
                                                Name:
                                                Title:

                                                SERANOVA, INC.

                                                By:  /s/ Raj Koneru
                                                   -----------------------------
                                                Name: Raj Koneru
                                                Title:     CEO

                                      -21-
<PAGE>

                                  SCHEDULE 1.1
                               SHARED LIABILITIES

          1.     Shared Corporate Liabilities.

          2.     Liabilities  under  the  Securities  Act  or  the  Exchange Act
arising from acts or omissions of Intelligroup  prior to the Distribution  Date,
other than  Liabilities  arising  from the filing by  Intelligroup  of a Current
Report on Form 8-K containing information on the Intelligroup Group.

<PAGE>

                                 SCHEDULE 2.1(a)
                AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
                                OF SERANOVA, INC.

<PAGE>

                    CERTIFICATE REQUIRED TO BE FILED WITH THE

                AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                                 SERANOVA, INC.

          Pursuant to the  provisions  of Section  14A:9-5(5)  of the New Jersey
Business  Corporations  Act, the  undersigned  corporation  hereby  executes the
following certificate:

          1.  The name of the corporation is SeraNova, Inc. (the "Corporation").

          2.  The  Amended and Restated Certificate of Incorporation was adopted
by the Board of Directors of the Corporation on December 1, 1999 and by the sole
shareholder of the Corporation on December 1, 1999.

          3.  The number of shares of the  Corporation  entitled  to vote on the
Amended and  Restated  Certificate  of  Incorporation  is 1,000 shares of Common
Stock.  All outstanding  shares of Common Stock voted for the foregoing  Amended
and Restated  Certificate of  Incorporation  and no shares of Common Stock voted
against the foregoing Amended and Restated Certificate of Incorporation.

          4.  The Amended and Restated  Certificate  of Incorporation  restates,
integrates  and  amends in its  entirety  the  provisions  of the  Corporation's
Certificate of Incorporation, as amended to date.

          IN WITNESS  WHEREOF,  the undersigned  has signed this  Certificate on
behalf of the Corporation this 25th day of January, 2000.

                                     By: Rajkumar Koneru
                                         --------------------------------------
                                         Rajkumar Koneru, Chairman,
                                           Chief Executive Officer and President

<PAGE>

                              AMENDED AND RESTATED

                          CERTIFICATE OF INCORPORATION

                                       OF

                                 SERANOVA, INC.

          Pursuant to Section 14A:9-5 of the New Jersey Business Corporation Act
(the  "Act"),  the  undersigned  corporation  hereby  executes  this Amended and
Restated Certificate of Incorporation.

          FIRST:    The  name  of the   Corporation   is  SeraNova,   Inc.  (the
"Corporation").

          SECOND:   The  purpose  or  purposes  for  which  the  Corporation  is
organized  is to engage in any lawful  activity  within the  purposes  for which
corporations may be organized under Title 14A of the Act.

          THIRD:    The total  number of shares  of all  classes of stock  which
the Corporation shall have authority to issue is forty five million (45,000,000)
shares.  The Corporation is authorized to issue two classes of stock  designated
"Common Stock" and "Preferred Stock,"  respectively.  The total number of shares
of Common Stock  authorized  to be issued by the  Corporation  is forty  million
(40,000,000),  each such share of Common Stock  having a par value of $.01.  The
total  number  of  shares  of  Preferred  Stock  authorized  to be issued by the
Corporation  shall be five  million  (5,000,000),  each such share of  Preferred
Stock having a par value of $.01, all of which is undesignated.

                    The undesignated  Preferred Stock may be issued from time to
time in one or more series.  The Board of Directors of the Corporation is hereby
authorized,  by adopting a resolution or resolutions and filing a certificate or
certificates pursuant to the applicable provisions of the Act, to establish from
time to time the  number  of  shares  to be  included  in each  such  series  of
Preferred Stock, and to fix the designation,  powers,  preferences and rights of
the  shares  of  each  such  series  and  the  qualifications,   limitations  or
restrictions  thereof,  including but not limited to the fixing or alteration of
the dividend rights,  dividend rate or rates,  conversion rights, voting rights,
rights  and  terms  of  redemption  (including  sinking  fund  provisions),  the
redemption  price or  prices,  and the  liquidation  preferences  of any  wholly
unissued series of shares of Preferred Stock, or any of them, and to increase or
decrease the number of shares of any series subsequent to the issuance of shares
of that  series,  but not  below  the  number  of  shares  of such  series  then
outstanding.  In the event  the  number  of  shares  of any  series  shall be so
decreased, the shares removed from such series by such decrease shall resume the
status which they had prior to the adoption of the resolution  originally fixing
the number of shares of such series.

          FOURTH:   The  address of  the registered  office of  the  Corporation
shall be 499 Thornall Street,  Edison, New Jersey 08837. The registered agent of
the Corporation at its registered office shall be Rajkumar Koneru.

<PAGE>

          FIFTH:    The number of  directors constituting  the  current Board of
Directors  is three.  The names and  addresses  of each of such  directors is as
follows:

                   Name                                 Address
               -------------------                 ------------

               Rajkumar Koneru                     c/o SeraNova, Inc.
                                                   499 Thornall Street
                                                   Edison, New Jersey 08837

               Nagarjun Valluripalli               c/o SeraNova, Inc.
                                                   499 Thornall Street
                                                   Edison, New Jersey 08837

               Ravi Singh                          c/o SeraNova, Inc.
                                                   499 Thornall Street
                                                   Edison, New Jersey 08837

          SIXTH:    The  following provisions are included for the management of
the business and the conduct of the affairs of the Corporation,  and for further
definition,  limitation and regulation of the powers of the  Corporation  and of
its Board of Directors and shareholders:

             (i)    The  Board  of  Directors  of the  Corporation  is expressly
          authorized  to adopt, amend or repeal the  Bylaws of the  Corporation,
          subject  to any  limitation  thereof  contained  in  the  Bylaws.  The
          shareholders also shall  have the power to adopt,  amend or repeal the
          Bylaws  of  the Corporation;  provided,  however,  that, except as set
                                        --------   -------
          forth below in clause  (ii),  in  addition  to any vote of the holders
          of any class or series of stock of the Corporation  required by law or
          by  this  Amended  and  Restated  Certificate  of  Incorporation,  the
          affirmative vote of  the holders of at least sixty six and  two-thirds
          percent (66 2/3%) of the voting power of all of the  then  outstanding
          shares  of  the capital  stock of  the  Corporation  entitled to  vote
          generally  in the election of  directors,  voting together as a single
          class,  shall be  required to adopt, amend or  repeal any provision of
          the Bylaws of the Corporation;

             (ii)   in  addition  to  any  vote of the  holders of  any class or
          series of stock of the Corporation  required by law or by this Amended
          and Restated Certificate of Incorporation, the affirmative vote of the
          holders  of at least eighty  percent (80%) of the  voting power of all
          of the then outstanding shares of the capital stock of the Corporation
          entitled to  vote  generally  in the  election  of  directors,  voting
          together  as a  single class,  shall be required  to adopt,  amend  or
          repeal any  provision of  ARTICLE XI of the Bylaws of the  Corporation
          entitled "INDEMNIFICATION AND INSURANCE."

             (iii)  Upon  the  earlier of (i)  the  consummation   of an initial
          public offering of securities of the Corporation  under the Securities
          Act of 1933, as amended, or (ii) the registration of the Corporation's
          Common Stock under the

                                      -2-
<PAGE>

          Securities  Exchange Act  of 1934,  as amended,  shareholders  of  the
          Corporation may  not take  any action by written  consent in lieu of a
          meeting.

             (iv)   Special  meetings of shareholders may be  called at any time
          only by the  President,  the Chairman of the Board of Directors of the
          Corporation  (if any) or a majority of  the Board of Directors  of the
          Corporation.   Business   transacted  at   any   special  meeting   of
          shareholders shall  be limited to matters  relating to the  purpose or
          purposes set forth in the notice of such special meeting.

             (v)    The  Board of Directors  of the Corporation, when evaluating
          any offer of another party (a) to make a tender or exchange  offer for
          any  equity security  of the  Corporation  or (b) to effect a business
          combination,  merger, consolidation,  or sale of all  or substantially
          all of the  assets  of the Corporation, shall, in connection with  the
          exercise of its judgment in determining  what is in the best interests
          of the Corporation as a whole, be authorized to give due consideration
          to any such  factors  as the  Board  of  Directors  of the Corporation
          determines to be relevant, including, without limitation:

                    (1)  the  short  term   and  long  term  interests  of   the
             Corporation  and  the  Corporation's  shareholders,  including  the
             possibility  that  these  interests  might  be  best  served by the
             continued independence of the Corporation;

                    (2)  whether the proposed transaction might violate  federal
             or state laws;

                    (3)  not  only  the  consideration  being  offered  in   the
             proposed  transaction,  in  relation  to  the  then  current market
             price  for  the  outstanding  capital  stock  of  the  Corporation,
             but  also  to  the  market  price  for  the  capital  stock of  the
             Corporation  over  a  period  of  years,  the estimated price  that
             might  be  achieved in  a negotiated sale  of the  Corporation as a
             whole  or  in  part  or through orderly  liquidation,  the premiums
             over  market price  for the  securities of  other  corporations  in
             similar   transactions,  current  political,  economic  and   other
             factors   bearing  on  securities  prices  and  the   Corporation's
             financial condition and future prospects; and

                    (4)  the social, legal and economic effects upon  employees,
             suppliers,   creditors,  customers   and   others   having  similar
             relationships  with the Corporation, upon the  communities in which
             the Corporation operates its  business and upon  the economy of the
             state, region and nation.

          In connection with any such evaluation,  the Board of Directors of the
          Corporation is authorized to conduct such investigations and engage in
          such  legal proceedings as  the Board of Directors  of the Corporation
          may determine.

                                      -3-
<PAGE>

             (vi)   in  addition  to any  vote of  the holders  of any  class or
          series of stock of the Corporation  required by law or by this Amended
          and Restated Certificate of Incorporation, the affirmative vote of the
          holders of at least sixty six and two-thirds  percent (66 2/3%) of the
          voting  power of  all of the  then outstanding  shares of  the capital
          stock   of  the  Corporation   entitled  to  vote   generally  in  the
          election  of directors,  voting  together  as  a single  class,  shall
          be required to amend any  provision  of Article SIXTH of this  Amended
          and Restated  Certificate of  Incorporation (other than clause (ii) of
          Article SIXTH).

             (vii)  in  addition  to any vote of  the holders  of  any class  or
          series of stock of the Corporation  required by law or by this Amended
          and Restated Certificate of Incorporation, the affirmative vote of the
          holders  of at least eighty  percent (80%) of the  voting power of all
          of   the  then  outstanding  shares  of  the  capital  stock  of   the
          Corporation   entitled   to   vote  generally  in  the   election   of
          directors,  voting together as  a single  class, shall be  required to
          amend any provision of clause (ii) of Article SIXTH or Article SEVENTH
          of this  Amended and Restated Certificate of Incorporation.

          SEVENTH:  No director  or officer  shall be  personally  liable to the
Corporation or its  shareholders  for damages for breach of any duty owed to the
Corporation or its shareholders,  except that this provision shall not relieve a
director  or officer  from  liability  for any breach of duty based on an act or
omission (a) in breach of such  person's duty of loyalty to the  Corporation  or
its shareholders, (b) not in good faith or involving a knowing violation of law,
or (c) resulting in receipt by such person of an improper personal  benefit.  No
amendment  to,  expiration of or repeal of this Article shall have any effect on
the liability or alleged liability of any director or officer of the Corporation
for or with  respect  to any  acts or  omissions  of such  director  or  officer
occurring prior to such amendment, expiration or repeal.

<PAGE>

          IN WITNESS  WHEREOF,  the  undersigned  has signed  this  Amended  and
Restated Certificate of Incorporation on behalf of the Corporation this 25th day
of January, 2000.

                                    SERANOVA, INC.

                                    By:  /s/ Rajkumar Koneru
                                         ---------------------------------------
                                         Rajkumar Koneru, Chairman,
                                           Chief Executive Officer and President

                                      -5-
<PAGE>

                                 SCHEDULE 2.1(b)
                            BY-LAWS OF SERANOVA, INC.

<PAGE>

                                     BY-LAWS

                                       OF

                                 SERANOVA, INC.

                           (FORMERLY INFINIENT, INC.)

                                    ARTICLE I

                                     OFFICES

     1.01      Registered  Office:  The   initial  registered  office   of   the
               ------------------
Corporation shall be c/o Intelligroup,  Inc., 499 Thornall Street,  Edison,  New
Jersey 08837. The Board of Directors may change the registered  office from time
to time. 1.02 Other Offices:  The Corporation may have such other offices either
within  or  without  the  State of New  Jersey  as the  Board of  Directors  may
designate or as the business of the Corporation may require from time to time.

                                   ARTICLE II

                                      SEAL

     2.01      Seal:  The  corporate  seal shall be  in the form  adopted by the
               ----
Board of Directors and may be altered by them from time to time.

                                   ARTICLE III

                             SHAREHOLDERS' MEETINGS

     3.01      Place:  All  meetings  of the  shareholders  shall be held at the
               -----
registered  office of the  Corporation or at such other place or places,  either
within or without the State of New Jersey,  as may from time to time be selected
by the Board of Directors.

<PAGE>

     3.02      Annual  Meetings:  The  annual meeting  of shareholders shall  be
               ----------------
held at such time as may be fixed by the Board of Directors. At that meeting the
shareholders  shall  elect,  by a  plurality  vote,  a Board of  Directors,  and
transact  such other  business as may  properly  come before the  meeting.

     3.03      Special Meetings:  Special  meetings of  the shareholders  may be
               ----------------
called only by the  President,  the  Chairman of the Board of  Directors  of the
Corporation  (if any) or by order of a majority of the Board of Directors.  Such
written  request  shall state the purpose or purposes of the  proposed  meeting.
Business  transacted  at a special  meeting  shall be confined to the purpose or
purposes stated in the notice calling such meeting.

     3.04      Notice of Shareholders' Meetings:  Written  notice of  the  time,
               --------------------------------
place and purpose or purposes of every  meeting of  shareholders  shall be given
not less than ten or more than sixty days before the date of the meeting, either
personally  or by mail  (to the  last  address  appearing  on the  books  of the
Corporation),  to each shareholder of record entitled to vote at the meeting and
to each shareholder otherwise entitled to notice by law, unless a greater period
of notice is  required  by  statute  in a  particular  case.

     When  a meeting  is adjourned  to another  time or place,  it shall  not be
necessary to give notice of the adjourned meeting if the time and place to which
the meeting is adjourned are  announced at the meeting at which the  adjournment
is taken and at the adjourned  meeting only such business is transacted as might
have been transacted at the original meeting.  However, if after the adjournment
the Board fixes a new record  date for the  adjourned  meeting,  a notice of the
adjourned meeting shall be given to each shareholder of record on the new record
date entitled to notice.

                                      -2-
<PAGE>

     3.05      Waiver of Notice:  Notice  of a meeting need  not be given to any
               ----------------
shareholder  who signs a waiver of such notice,  in person or by proxy,  whether
before or after the meeting.  The attendance of any shareholder at a meeting, in
person or by proxy,  without  protesting  prior to the conclusion of the meeting
the lack of notice of such meeting,  shall constitute a waiver of notice by that
shareholder.

     Whenever  shareholders are authorized to take any action after the lapse of
a prescribed  period of time, the action may be taken without such lapse if such
requirement  is waived in  writing,  in person or by proxy,  before or after the
taking of such action, by every  shareholder  entitled to vote thereon as of the
date of the taking of such action.

     3.06      Action by Shareholders  Without Meeting:
               ---------------------------------------

               (1)  Any action required or permitted to be taken at a meeting of
shareholders  by statute or the Certificate of  Incorporation  or By-laws of the
Corporation may be taken without a meeting if all the  shareholders  entitled to
vote thereon consent  thereto in writing,  except that in the case of any action
to be taken pursuant to Chapter 10 (concerning mergers,  etc.) of the New Jersey
Business Corporation Act (the "Act"), such action may be taken without a meeting
only if all  shareholders  entitled to vote  consent  thereto in writing and the
Corporation provides to all other shareholders the advance notification required
by paragraph  (2)(b) of this  section.

               (2)  Except   as  otherwise   provided  in  the  Certificate   of
Incorporation  and  subject to the  provisions  of this  subsection,  any action
required or permitted to be taken at a meeting of  shareholders  by the Act, the
Certificate  of  Incorporation,  or By-laws,  other than the annual  election of
Directors,  may  be  taken  without  a  meeting  upon  the  written  consent  of
shareholders  who would have been  entitled to cast the minimum  number of votes
which  would

                                      -3-
<PAGE>

be  necessary to  authorize  such action at a meeting at which all  shareholders
entitled to vote thereon were present and voting.

                   (a)   If  any shareholder  shall  have the  right  to dissent
from a proposed action, pursuant to Chapter 11 of the Act, the Board shall fix a
date on which written  consents are to be  tabulated;  in any other case, it may
fix a date for  tabulation.  If no date is fixed,  consents  may be tabulated as
they are received. No consent shall be counted which is received more than sixty
days after the date of the Board action authorizing the solicitation of consents
or, in a case in which consents, or proxies for consents, are solicited from all
shareholders  who would have been  entitled to vote at a meeting  called to take
such action,  more than sixty days after the date of mailing of  solicitation of
consents, or proxies for consents.

                   (b)   Except    as  provided   in  paragraph   (2) (c),   the
Corporation,  upon receipt and  tabulation  of the  requisite  number of written
consents, shall promptly notify all non-consenting shareholders,  who would have
been  entitled  to notice of a meeting to vote upon such  action,  of the action
consented to, the proposed  effective  date of such action,  and any  conditions
precedent to such action.  Such notification shall be given at least twenty days
in  advance of the  proposed  effective  date of such  action in the case of any
action taken pursuant to Chapter 10 of the Act, and at least ten days in advance
in the case of any other action.

                   (c)  The  Corporation  need  not  provide  the   notification
required to be given by paragraph (2)(b) if it

                        (i)   solicits  written consents or proxies for consents
          from all  shareholders  who  would  have  been  entitled  to vote at a
          meeting called to take such action,

                                      -4-
<PAGE>

          and at the same time gives notice of the proposed  action to all other
          shareholders  who  would  have  been  entitled  to notice of a meeting
          called to vote upon such action;

                         (ii)  advises  all   shareholders,  if  any,  who   are
          entitled to dissent from the proposed  action,  as provided in Chapter
          11 of the Act,  of their  right to do so and to be paid the fair value
          of their shares; and

                         (iii) fixes a date  for tabulation of consents not less
          than  twenty  days,  in the case of any  proposed  action  to be taken
          pursuant  to Chapter  10 of the Act,  or not less than ten days in the
          case of any other proposed action,  and not more than sixty days after
          the date of mailing  of  solicitations  of  consents  or  proxies  for
          consents.

                   (d)   Any consent obtained  pursuant to paragraph (2)(c)  may
be revoked at any time prior to the day fixed for  tabulation  of consents.  Any
other  consent may be revoked at any time prior to the day on which the proposed
action could be taken upon compliance with paragraph (2)(b). The revocation must
be in writing and be received by the Corporation.

               (3)  Whenever  action  is  taken  pursuant to  subsection  (1) or
(2), the written consents of the shareholders  consenting thereto or the written
report of inspectors appointed to tabulate such consents shall be filed with the
minutes or proceedings of shareholders.

               (4)  In  case  the   Corporation  is  involved   in   a   merger,
consolidation or other type of acquisition or disposition  regulated by Chapters
10 and 11 of the Act, the pertinent provisions of the statute should be referred
to and strictly complied with.

               (5)  Notwithstanding  the  provisions  of   this  Section   3.06,
immediately  following the  consummation of an initial public offering under the
Securities  Act of 1933,  as

                                      -5-
<PAGE>

amended,  or registration under the Securities Exchange Act of 1934, as amended,
by the Corporation of any of its capital stock,  shareholders of the Corporation
may not take any action by written  consent  in lieu of a meeting.

     3.07      Fixing Record Date:
               ------------------

               (1)  The Board may fix, in advance, a date as the record date for
determining the  Corporation's  shareholders with regard to any corporate action
or event and, in particular,  for determining the  shareholders who are entitled
to
                    (a)  notice of or to vote at any meeting of shareholders  or
any  adjournment thereof;

                    (b)  give a written consent to any action without a meeting;
or

                    (c)  receive  payment of any  dividend or  allotment of  any
right.

The  record  date  may  in no  case  be  more  than  sixty  days  prior  to  the
shareholders'  meeting or other  corporate  action or event to which it relates.
The record date for a shareholders' meeting may not be less than ten days before
the date of the  meeting.  The record date to determine  shareholders  to give a
written  consent  may not be more than  sixty  days  before  the date  fixed for
tabulation  of the consents or, if no date has been fixed for  tabulation,  more
than sixty days before the last day on which consents received may be counted.

               (2)  If no record date is fixed,

                    (a) the record date for a shareholders' meeting shall be the
close of business on the day next  preceding  the day on which  notice is given,
or, if no notice is given,  the day next  preceding the day on which the meeting
is held; and

                                      -6-
<PAGE>

                    (b) the  record  date for  determining shareholders  for any
other  purpose  shall  be at the  close  of  business  on the day on  which  the
resolution of the Board relating thereto is adopted.

               (3)  When  a  determination  of  shareholders  of  record  for  a
shareholders'   meeting  has  been  made  as  provided  in  this  section,  such
determination shall apply to any adjournment  thereof,  unless the Board fixes a
new record date under this section for the adjourned meeting.

     3.08      Voting  Lists:  The officer or agent  having  charge of the stock
               -------------
transfer  books for shares of the  Corporation  shall  make a  complete  list of
shareholders  entitled  to vote at a  shareholders'  meeting or any  adjournment
thereof.  A list  required  by  this  section  may  consist  of  cards  arranged
alphabetically  or  any  equipment  which  permits  the  visual  display  of the
information  required.  Such list shall be arranged  alphabetically  within each
class,  series  or group  of  shareholders  maintained  by the  Corporation  for
convenience of reference, with the address of, and the number of shares held by,
each shareholder; be produced (or available by means of a visual display) at the
time and place of the meeting;  be subject to the inspection of any  shareholder
for reasonable  periods  during the meeting;  and be prima facie evidence of the
identity of the  shareholders  entitled  to examine  such list or to vote at any
meeting.

     If the  requirements  of this  section  have not been  complied  with,  the
meeting  shall,  on the  demand of any  shareholder  in  person or by proxy,  be
adjourned until the requirements  are complied with.  Failure to comply with the
requirements  of this section  shall not affect the validity of any action taken
at such  meeting  prior to the making of any such demand.

                                      -7-
<PAGE>

     3.09      Quorum:  Unless  otherwise   provided  in  the   Certificate   of
               ------
Incorporation or by statute,  the presence of holders of shares (in person or by
proxy) entitled to cast a majority of the votes at a meeting shall  constitute a
quorum at such meeting. The shareholders present in person or by proxy at a duly
organized meeting may continue to do business until adjournment, notwithstanding
the withdrawal of enough  shareholders to leave less than a quorum.  Less than a
quorum may  adjourn.

     Whenever  the holders of any class or series of shares are entitled to vote
separately on a specified item of business, the provisions of this section shall
apply in  determining  the  presence of a quorum of such class or series for the
transaction  of such  specified  item of business.

     3.10      Voting:  Each  holder  of shares  with  voting  rights  shall  be
               ------
entitled to one vote for each such share  registered in his/her name,  except as
otherwise  provided in the  Certificate of  Incorporation.  Whenever any action,
other  than  the  election  of  Directors,  is  to  be  taken  by  vote  of  the
shareholders,  it shall be  authorized  by a  majority  of the  votes  cast at a
meeting of  shareholders  by the  holders of shares  entitled  to vote  thereon,
unless a greater  plurality  is  required  by statute or by the  Certificate  of
Incorporation.

     Every  shareholder  entitled to  vote at  a meeting  of shareholders  or to
express consent without a meeting may authorize another person or persons to act
for  him/her  by  proxy.  Every  proxy  shall  be  executed  in  writing  by the
shareholder or his/her agent,  except that a proxy may be given by a shareholder
or his/her agent by telegram or cable or its equivalent. No proxy shall be valid
for more than eleven months unless a longer time is expressly  provided therein.
Unless it is coupled  with an  interest,  a proxy shall be  revocable at will. A
proxy shall not be revoked by the death or  incapacity  of the  shareholder  but
such proxy shall continue in force until revoked by the personal  representative
or guardian of the  shareholder.  The presence at any meeting of any

                                      -8-
<PAGE>

shareholder  who has given a proxy  shall  not  revoke  such  proxy  unless  the
shareholder  shall file written notice of such  revocation with the Secretary of
the meeting prior to the voting of such proxy.

     3.11      Election  of  Directors:  At  each  election  of  Directors every
               -----------------------
shareholder  entitled to vote at such election  shall have the right to vote the
number of shares owned by him for as many  persons as there are  Directors to be
elected  and for  whose  election  he has a right  to vote.  Directors  shall be
elected by a plurality  of the votes cast at the  election,  except as otherwise
provided by the Certificate of Incorporation.

     Elections of Directors need not be by ballot  unless a shareholder  demands
election by ballot at the election and before the voting begins.

     3.12      Inspectors  of  Election:  The  Board  may,  in  advance  of  any
               ------------------------
shareholders'  meeting, or of the tabulation of written consents of shareholders
without a meeting,  appoint one or more  inspectors to act at the meeting or any
adjournment  thereof or to  tabulate  such  consents  and make a written  report
thereof.  If  inspectors  to act at  any  meeting  of  shareholders  are  not so
appointed  or shall fail to qualify,  the person  presiding  at a  shareholders'
meeting  may,  and on the request of any  shareholder  entitled to vote there at
shall, make such appointment.

     Each  inspector,  before  entering upon the discharge of his duties,  shall
take and sign an oath  faithfully to execute the duties of inspector with strict
impartiality  and  according  to the best of his  ability.  No  person  shall be
elected a Director in an election for which he has served as an inspector.

                                      -9-
<PAGE>

     3.13      Conduct of Meetings:
               -------------------

               (1)  The  President of the  Corporation,  and in the  President's
absence, the Vice President of the Corporation, shall preside at all meetings of
shareholders.  In the  absence  of the  President  and the Vice  President,  the
shareholders  present shall, by a simple majority vote,  elect a chairman of the
meeting.
               (2)  The  Secretary of the Corporation shall act as  Secretary of
all meetings of shareholders; in the Secretary's absence, the chairman presiding
at any such meeting shall appoint a person to act as secretary of the meeting.

                                   ARTICLE IV

                                    DIRECTORS

     4.01      Number of  Directors:  The number of  Directors constituting  the
               --------------------
entire Board shall be one or such greater  number as shall be set by the vote of
a majority of the Board of Directors then authorized to hold office.  A Director
shall be at least  eighteen years of age and need not be a United States citizen
or resident of this State or a  shareholder  in the  Corporation.  Each Director
shall be elected by the  shareholders,  at the annual meeting of shareholders of
the  Corporation,  and shall be elected for the term of one year,  and until his
successor shall be elected and shall qualify.

     4.02      Term of  Directors:  The  Directors named in the  Certificate  of
               ------------------
Incorporation  shall hold office until the first annual meeting of shareholders,
and until their successors  shall have been elected and qualified.  At the first
annual  meeting of  shareholders  and at each  annual  meeting  thereafter,  the
shareholders  shall elect  Directors  to hold office  until the next  succeeding

                                      -10-
<PAGE>

annual meeting. Each Director shall hold office for the term for which he/she is
elected and until a successor shall have been elected and qualified.

     4.03      Removal  of  Directors:  Unless   otherwise   provided   in   the
               ----------------------
Certificate of Incorporation, any or all of the Directors of the Corporation may
be removed with or without cause by the  shareholders by the affirmative vote of
the  majority  of all  shares  then  entitled  to vote for the  election  of the
Directors.

     4.04      Quorum  of Board of Directors and Committees; Action of Directors
               -----------------------------------------------------------------
Without a Meeting:
-----------------

               (1)  The  participation  of  Directors  with  a majority  of  the
votes of the entire  Board of  Directors,  or of any  Committee  thereof,  shall
constitute a quorum for the transaction of business.

               (2)  Any  action  required or  permitted to be taken  pursuant to
authorization  voted at a meeting of the Board of  Directors,  or any  Committee
thereof,  may be taken without a meeting if, prior or subsequent to such action,
all members of the Board or such Committee,  as the case may be, consent thereto
in  writing  and  such  written  consents  are  filed  with the  minutes  of the
proceedings of the Board or Committee.

     4.05      Place of Board of  Directors  Meeting:  Meetings  of the Board of
               -------------------------------------
Directors may be held either within or without the State of New Jersey,  at such
times and places as the Board of Directors shall determine.

     4.06      Annual Meeting:  An annual  meeting of the newly elected Board of
               --------------
Directors shall be held immediately following the annual meeting of shareholders
(or immediately  following any adjournment  thereof) at the place of such annual
meeting of shareholders, for the

                                      -11-
<PAGE>

organization  of such Board of Directors  and for the  transaction  of any other
business as may conveniently  and properly be brought before such meeting.

     4.07      Meetings of the  Board of  Directors:
               ------------------------------------

               (1)  Regular meetings of the  Board of Directors may be held with
or without notice. Special meetings of the Board of Directors shall be held upon
notice to the  Directors  and may be called by the  President  upon at least one
days notice to each Director either  personally or by mail,  wire, or telephone;
special  meetings shall be called by the President or Secretary in a like manner
upon written request of one or more Directors. Notice of any meeting need not be
given to any Director who signs a written  waiver of notice,  whether  before or
after  the  meeting.  The  attendance  of any  Director  at a  meeting,  without
protesting  prior to the  conclusion  of the  meeting the lack of notice of such
meeting,  shall  constitute  an  effective  waiver of  notice by that  Director.
Neither the business to be transacted at, nor the purpose of, any meeting of the
Board of  Directors  need be specified in the notice or waiver of notice of such
meeting.

               (2)  Where appropriate communication  facilities  are  reasonably
available,  any or all Directors  shall have the right to  participate in all or
any part of a meeting of the Board of Directors,  or any Committee  thereof,  by
means of conference telephone or any means of communication by which all persons
participating in the meeting are able to hear each other.

     4.08      Adjournment:  A majority  of the  Directors  present,  whether or
               -----------
not a quorum is present,  may  adjourn  any  meeting to another  time and place.
Notice of the adjournment shall be given to all Directors who were absent at the
time of the adjournment. Notice of an adjourned meeting need not be given to any
Directors who were present at the time of the  adjournment  only if the time and
place are fixed at the meeting  adjourning and if the period of adjournment does
not exceed ten days in any one adjournment.

                                      -12-
<PAGE>

     4.09      Powers  of  Directors:  The Board  of Directors  shall manage  or
               ---------------------
direct  the  management  of the  business  and  affairs of the  Corporation.  In
addition to the powers and  authorities  expressly  conferred upon them by these
By-laws,  the Board may exercise all such powers of the  Corporation  and do all
such lawful acts and things as are not by statute or by these  By-laws  directed
or required to be exercised or done by the  shareholders.

     4.10      Compensation of Directors:  The Board,  by the  affirmative  vote
               -------------------------
of a majority of Directors in office and  irrespective of any personal  interest
of any of them,  shall have authority to establish  reasonable  compensation  of
Directors for services to the  Corporation as Directors,  officers or otherwise.

     4.11      Executive  Committees:  The  Board of  Directors,  by  resolution
               ---------------------
adopted by a majority of the entire Board, may appoint from among its members an
executive  committee and one or more other committees,  each of which shall have
one or more  members.  Each such  committee  shall have and may exercise all the
authority  delegated  to it by the Board,  except that no such  committee  shall
make,  alter or repeal  any  By-law of the  Corporation;  elect or  appoint  any
Director,  or remove any officer or Director;  submit to shareholders any action
that  requires  shareholders'  approval;  or  amend  or  repeal  any  resolution
theretofore  adopted by the Board which by its terms is amendable or  repealable
only by the Board.

     Actions taken at a meeting of any such  committee  shall be reported to the
Board at its next meeting  following such committee  meeting;  except that, when
the  meeting of the Board is held within two days after the  committee  meeting,
such report shall, if not made at the first meeting, be made to the Board at its
second meeting following such committee meeting.

                                      -13-
<PAGE>

                                    ARTICLE V

                                    OFFICERS

     5.01      Officers:  The  officers of the  Corporation  shall  consist of a
               --------
President, a Secretary,  a Treasurer,  and, if desired, a Chairman of the Board,
one or more  Vice  Presidents,  and  such  other  officers  as the  Board  deems
appropriate.  The  officers  shall be elected by the Board of  Directors  at its
annual meeting and shall hold office for one year and until their successors are
elected  and have  qualified,  subject  to  earlier  termination  by  removal or
resignation.  The Board may also  choose such  employees  and agents as it shall
deem necessary,  who shall hold their offices for such terms and shall have such
authority and shall perform such duties as from time to time shall be prescribed
by the Board.

     Unless  otherwise  provided  by law,  the Certificate  of Incorporation  or
these  By-laws,  any two or more  offices  may be held by the same person but no
officer shall  execute,  acknowledge,  or verify any instrument in more than one
capacity  if such  instrument  is  required  by law or by  these  By-laws  to be
executed, acknowledged, or verified by two or more officers.

     5.02      Salaries:  The salaries of all officers,  employees and agents of
               --------
the Corporation shall be fixed by the Board of Directors.

     5.03      Removal:  Any  officer  elected  or  appointed  by the  Board  of
               -------
Directors may be removed by the Board with or without cause.  An officer elected
by the shareholders may be removed,  with or without cause,  only by vote of the
shareholders  but his  authority  to act as an officer may be  suspended  by the
Board for cause.

     5.04      President:  The President shall be the chief executive officer of
               ---------
the  Corporation;  he/she shall preside at all meetings of the  shareholders and
Directors;  he/she shall have general

                                      -14-
<PAGE>

and active  management  of the business of the  Corporation,  shall see that all
orders and resolutions of the Board are carried into effect,  subject,  however,
to the right of the  Directors to delegate any specific  powers,  except such as
may be by  statute  exclusively  conferred  on the  President,  or to any  other
officer or officers of the  Corporation.  He/she shall execute bonds,  mortgages
and other contracts requiring a seal, under the seal of the Corporation.  He/she
shall be  EX-OFFICIO  a member of all  committees,  and shall  have the  general
powers and duties of supervision and management  usually vested in the office of
President of the Corporation.  He/she shall present a report of the condition of
the business of the Corporation at each annual meeting of the  shareholders  and
the Board of Directors.

     5.05      Vice  President:  The Vice President,  if one has been appointed,
               ---------------
shall be vested with all the powers and be required to perform all the duties of
the President in his/her  absence or refusal to act.  He/she shall also exercise
such  powers  and  perform  such  duties  as may be  properly  delegated  by the
President or the Board of Directors.

     5.06      Chairman of the Board: The Chairman of the Board, if one has been
               ---------------------
appointed,  shall  exercise  such  powers and  perform  such  duties as shall be
provided in the resolution proposing that a Chairman of the Board be elected.

     5.07      Secretary:  The Secretary shall keep full minutes of all meetings
               ---------
of the shareholders and Directors;  he/she shall be EX-OFFICIO  Secretary of the
Board of Directors;  he/she shall attend all sessions of the Board, shall act as
clerk thereof, and record all votes and the minutes of all proceedings in a book
to be kept for that  purpose;  and shall  perform  like duties for the  standing
committees when required. He/she shall give or cause to be given, notices of all
meetings of the shareholders of the Corporation and the Board of Directors,  and
shall  perform

                                      -15-
<PAGE>

such other duties as may be  prescribed  by the Board of Directors or President,
under whose supervision he/she shall be.

     5.08      Chief Financial Officer:  The Chief Financial Officer shall keep,
               -----------------------
or cause to be kept,  the books and records of account of the  Corporation.  The
Chief Financial Officer shall deposit all monies and other valuables in the name
and to the credit of the Corporation with such depositories as may be designated
from  time to time by  resolution  of the  Board of  Directors.  He or she shall
disburse  the  funds  of the  Corporation  as may be  ordered  by the  Board  of
Directors,  shall render to the President  and the Board,  whenever they request
it, an account of all of his transactions as Chief Financial  Officer and of the
financial  condition  of the  Corporation,  and shall have such other powers and
perform such other duties as may be prescribed from time to time by the Board or
as the President may from time to time delegate.

     5.09      Treasurer:  The Treasurer shall  keep full and  accurate accounts
               ---------
of receipts and  disbursements in books belonging to the Corporation,  and shall
deposit all moneys and other  valuable  effects in the name and to the credit of
the  Corporation,  in such  depositories  as may be  designated  by the Board of
Directors.  He/she shall disburse the funds of the Corporation as may be ordered
by the Board, taking proper vouchers for such disbursements, and shall render to
the President and Directors,  at the regular  meetings of the Board, or whenever
they may require it, an account of all his/her  transactions as Treasurer and of
the financial  condition of the  Corporation,  and shall submit a full financial
report at the annual meeting of the  shareholders.

     5.10      Assistant  Secretary   or  Assistant  Treasurer:  Any   Assistant
               -----------------------------------------------
Secretary or Assistant  Treasurer,  if one has been  appointed,  shall be vested
with all the powers and be required  to perform all the duties of the  Secretary
or Treasurer,  respectively,  in his/her absence or refusal to

                                      -16-
<PAGE>

act.  He/she shall also  exercise  such powers and perform such duties as may be
properly delegated by the President or the Board of Directors.

                                   ARTICLE VI

                                    VACANCIES

     6.01      Directors:  Any  directorship  not filled  at the annual meeting,
               ---------
any  vacancy,  however  caused,  occurring  in  the  Board,  and  newly  created
directorships  resulting from an increase in the authorized number of Directors,
may be filled by the affirmative  vote of a majority of the remaining  Directors
even though less than a quorum of the Board, or by a sole remaining Director.  A
Director  so elected by the Board shall hold office  until his  successor  shall
have been elected and qualified.  If, for any reason,  the Corporation  shall at
any time have no Directors then in office,  any  shareholder  may call a special
meeting  of  shareholders  for the  election  of  Directors  and,  over  his/her
signature,  shall give notice of such meeting in accordance  with these By-laws.

     6.02      Officers:  Any  vacancy  occurring among  the  officers,  however
               --------
caused,  shall be filled  by the  Board of  Directors.

     6.03      Resignations: Any Director or other officer may resign by written
               ------------
notice to the  Corporation.  The  resignation  shall be  effective  upon receipt
thereof by the  Corporation or at such  subsequent time as shall be specified in
the notice of resignation.

                                   ARTICLE VII

                               SHARE CERTIFICATES

     7.01      Certificates:  The share certificates of the Corporation shall be
               ------------
in such form as the Board of Directors may from time to time prescribe and shall
be  numbered  consecutively  and

                                      -17-
<PAGE>

registered in the transfer  records of the Corporation as they are issued.  When
issued,  they shall bear the holder's  name,  the number of shares,  the date of
issue,  and shall be  signed  by the  President  of the  Corporation.  The Share
certificates  may also be  countersigned by the Secretary of the Corporation and
may be  sealed  with  the  corporate  seal or a  facsimile  thereof.  Any or all
signatures upon a certificate may be a facsimile.

     7.02      Uncertificated  Shares:  The Board of Directors  may provide that
               ----------------------
some or all of the  shares  of any  class  or  series  shall be  represented  by
uncertificated  shares.  Within a reasonable time after the issuance or transfer
of  uncertificated  shares,  the Corporation  shall send to the registered owner
thereof a written notice containing the information  required to be set forth or
stated on certificates as provided in Chapter 7 of the Act.

     7.03      Transfer of Shares:  Upon  surrender  to the  Corporation  or the
               ------------------
transfer agent of the  Corporation of a certificate  for shares duly endorsed or
accompanied  by proper  evidence  of  succession,  assignment  or  authority  to
transfer,  it shall be the duty of the Corporation to issue a new certificate to
the person entitled thereto, and cancel the old certificate. Every such transfer
shall be entered on the transfer book of the Corporation  which shall be kept at
its  principal  office.  No  transfer  shall be made  within  fifteen  days next
preceding the annual meeting of shareholders.

     7.04      Fractional Shares. The Corporation may, but shall not be required
               -----------------
to,  issue  certificates  for  fractions  of a share where  necessary  to effect
authorized  transactions,  or the  Corporation may pay in cash the fair value of
fractions  of a share  as of the  time  when  those  entitled  to  receive  such
fractions  are  determined,  or it may issue scrip in  registered or bearer form
over the manual or facsimile  signature of an officer of the  Corporation  or of
its agent,  exchangeable  as therein  provided for full  shares,  but such scrip
shall not  entitle the holder to any rights of a  shareholder  except as therein
provided.

                                      -18-
<PAGE>

     7.05      Loss of Certificates: In the event that a share certificate shall
               --------------------
be lost,  destroyed or mutilated,  a new certificate may be issued therefor upon
such  terms and  indemnity  to the  Corporation  as the Board of  Directors  may
prescribe.

                                  ARTICLE VIII

                               BOOKS AND ACCOUNTS

     8.01      Records:  The Corporation shall keep books and records of account
               -------
and minutes of the  proceedings  of the  shareholders,  Board of  Directors  and
executive committee, if any. Such books, records and minutes may be kept outside
this State. The Corporation shall keep at its principal  office,  its registered
office,  or at the office of its transfer agent, a record or records  containing
the names and  addresses of all  shareholders,  the number,  class and series of
shares  held by each and the dates when they  respectively  became the owners of
record thereof. Any of the foregoing books, minutes or records may be in written
form or in any other form capable of being converted into readable form within a
reasonable time.

     8.02      Inspection:  Any person  who shall  have  been a  shareholder  of
               ----------
record of the  Corporation  for at least six months  immediately  preceding  his
demand, or any person holding, or so authorized in writing by the holders of, at
least five  percent of the  outstanding  shares of any class or series,  upon at
least five days written  demand  shall have the right for any proper  purpose to
examine in person or by agent or attorney,  during  usual  business  hours,  the
minutes of the proceedings of the shareholders and record of shareholders and to
make extracts therefrom at the places where the same are kept.

                                      -19-
<PAGE>

                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

     9.01      Monetary Disbursements: All checks or demands for money and notes
               ----------------------
of the  Corporation  shall be signed by such officer or officers as the Board of
Directors may from time to time designate.

     9.02      Fiscal Year: The Board of Directors shall be authorized to choose
               -----------
the initial fiscal year of the Corporation,  and to change that fiscal year from
time to time.

     9.03      Dividends:  The Board of Directors  may declare and pay dividends
               ---------
upon the  outstanding  shares of the  Corporation  from time to time and to such
extent as they deem  advisable,  in the manner and upon the terms and conditions
provided by statute and the Certificate of Incorporation.

     9.04      Reserve:  Before  payment of any dividend  there may be set aside
               -------
such  sum or  sums as the  Directors,  from  time to  time,  in  their  absolute
discretion,  think  proper  as a  reserve  fund  to meet  contingencies,  or for
equalizing  dividends,  or for  repairing  or  maintaining  any  property of the
Corporation, or for such other purpose as the Directors shall think conducive to
the interests of the Corporation, and the Directors may abolish any such reserve
in the manner in which it was created.

     9.05      Giving Notice: Whenever written notice is required to be given to
               -------------
any person,  it may be given to such person,  either  personally or by sending a
copy thereof  through the mail. If notice is given by mail,  the notice shall be
deemed to be given when deposited in the mail addressed to the person to whom it
is directed at his last address as it appears on the records of the Corporation,
with postage pre-paid thereon. Such notice shall specify the place, day and hour

                                      -20-
<PAGE>

of the meeting and, in the case of a shareholders'  meeting,  the general nature
of the business to be transacted.

     In  computing  the period of time for the giving of any notice  required or
permitted by statute, or by the Certificate of Incorporation or these By-laws or
any  resolution  of  Directors or  shareholders,  the day on which the notice is
given  shall be  excluded,  and the day on which the matter  noticed is to occur
shall be included.

     9.06      Loans to Directors,  Officers or Employees:  The Corporation  may
               ------------------------------------------
lend  money  to, or  guarantee  any  obligation  of, or  otherwise  assist,  any
Director, officer or employee of the Corporation or of any subsidiary,  whenever
it may reasonably be expected to benefit the Corporation.

     9.07      Disallowed  Compensation:  Any  payments  made to an  officer  or
               ------------------------
employee of the  Corporation  as salary,  commission,  bonus,  interest or rent,
which shall be  disallowed  in whole or in part as a  deductible  expense by the
Internal Revenue Service, shall be reimbursed by such officer or employee to the
Corporation to the full extent of such disallowance. It shall be the duty of the
Directors,  as a Board,  to enforce payment of each such amount  disallowed.  In
lieu of payment by the officer or employee,  subject to the determination of the
Directors,  proportionate  amounts may be withheld from his future  compensation
payments until the amount owed to the Corporation has been recovered.

                                    ARTICLE X

                                   AMENDMENTS

     10.01     Amendments:  The  Board of  Directors  shall have power to adopt,
               ----------
amend or repeal these By-laws.  By-laws adopted by the Board of Directors may be
repealed  or  changed,  and  new

                                      -21-
<PAGE>

By-laws made, by the  shareholders,  and the shareholders may prescribe that any
By-law  made by them shall not be  altered,  amended or repealed by the Board of
Directors.  The Board of Directors of the Corporation is expressly authorized to
adopt, amend or repeal the By-laws of the Corporation,  subject, however, to any
limitation thereof contained in these By-laws.  The shareholders also shall have
the power to adopt,  amend or repeal the By-laws of the  Corporation;  provided,
however,  that, in addition to any vote of the holders of any class or series of
stock of the Corporation required by law or by the Certificate of Incorporation,
the affirmative vote of the holders of at least sixty six and two-thirds percent
(66  2/3%) of the  voting  power of all of the then  outstanding  shares  of the
capital stock of the  Corporation  entitled to vote generally in the election of
Directors,  voting together as a single class, shall be required to adopt, amend
or repeal any provision of the By-laws of the Corporation;  and provided further
that in  addition  to any vote of the holders of any class or series of stock of
the  Corporation  required by law or by the  Certificate of  Incorporation,  the
affirmative  vote of the holders of at least eighty  percent (80%) of the voting
power  of all of the  then  outstanding  shares  of  the  capital  stock  of the
Corporation  entitled to vote  generally  in the election of  Directors,  voting
together as a single  class,  shall be  required  to adopt,  amend or repeal any
provision   of  ARTICLE  XI  of  the   By-laws  of  the   Corporation   entitled
"INDEMNIFICATION AND INSURANCE."

                                   ARTICLE XI

                          INDEMNIFICATION AND INSURANCE

     11.01     Indemnification:   The  Corporation  shall  indemnify  and   hold
               ---------------
harmless,  to the fullest extent  permitted by law as it presently exists or may
hereafter be amended,  any person who was or is made or is threatened to be made
a party or is otherwise  involved in any action or

                                      -22-
<PAGE>

suit,  whether  or not by or in the  right of the  Corporation,  or  proceeding,
whether  civil,  criminal,  administrative  or  investigative  (collectively,  a
"proceeding")  by reason  of the fact  that he,  or a person  for whom he is the
legal representative,  is or was a Director,  officer,  employee or agent of the
Corporation,  or is or was  serving  at the  request  of  the  Corporation  as a
Director, officer, employee or agent of another corporation or of a partnership,
joint venture,  trust,  enterprise or nonprofit  entity,  including service with
respect to employee  benefit  plans,  against all liability and loss,  including
judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid
in settlement,  incurred,  suffered or paid by or on behalf of such person,  and
expenses (including attorneys' fees) reasonably incurred by such person.

     11.02     Payment of  Expenses:  The  Corporation  shall  pay the  expenses
               --------------------
(including  attorneys'  fees) incurred in defending any proceeding in advance of
its final disposition,  provided, however, that the payment of expenses incurred
by a Director or officer in advance of the final  disposition  of the proceeding
shall be made only upon receipt of an  undertaking by the Director or officer to
repay  all  amounts  advanced  if it should be  ultimately  determined  that the
Director or officer is not  entitled  to be  indemnified  under this  Article or
otherwise.

     11.03     Claims:  The  right to  indemnification  and  payment of expenses
               ------
under the  Certificate of  Incorporation,  these By-laws or otherwise shall be a
contract right. If a claim for indemnification or payment of expenses under this
Article is not paid in full within sixty days after a written claim therefor has
been  received by the  Corporation,  the  claimant  may file suit to recover the
unpaid  amount of such claim and, if  successful  in whole or in part,  shall be
entitled to be paid the expense of  prosecuting  such claim.  In any such action
the  Corporation  shall  have the burden of proving  that the  claimant  was not
entitled  to  the  requested   indemnification  or  payment  of  expenses  under
applicable law.

                                      -23-
<PAGE>

     11.04     Non-Exclusivity of Rights: The rights conferred  on any person by
               -------------------------
this  Article  shall not be  exclusive of any other rights which such person may
have or hereafter  acquire under any statute,  provision of the  Certificate  of
Incorporation,  these By-laws,  agreement, vote of shareholders or disinterested
Directors or otherwise.

     11.05     Other Indemnification:  The Corporation's  obligation, if any, to
               ---------------------
indemnify  any  person  who was or is  serving  at its  request  as a  Director,
officer, employee or agent of another corporation,  partnership,  joint venture,
trust, enterprise or nonprofit entity shall be reduced by any amount such person
may collect as indemnification from such other corporation,  partnership,  joint
venture, trust, enterprise or nonprofit enterprise.

     11.06     Insurance:  The Board  of Directors may cause the  Corporation to
               ---------
purchase and maintain insurance on behalf of any person who is or was a Director
or  officer  of the  Corporation  or is or was  serving  at the  request  of the
Corporation  as a  Director  or  officer  of  another  Corporation,  or  as  its
representative  in a  partnership,  joint  venture,  trust or  other  enterprise
against any  liability  asserted  against  such person and  incurred in any such
capacity or arising out of such  status,  whether or not the  Corporation  would
have the power to indemnify such person.

     11.07     Amendment or Repeal:  Any repeal or modification of the foregoing
               -------------------
provisions of this Article XI shall not adversely affect any right or protection
hereunder of any person in respect of any act or omission occurring prior to the
time of such repeal or modification.

                                 * * * * * * * *

                                      -24-
<PAGE>

                                SCHEDULE 3.1(xi)
                         OPINION OF ARTHUR ANDERSEN LLP
                        RELATING TO TAX-FREE DISTRIBUTION

<PAGE>

March 3, 2000

Board of Directors
Intelligroup, Inc.
499 Thornall Street
Edison, New Jersey 08837

Dear Ladies and Gentlemen:

You  have  requested  our  opinion  as  to  certain  U.S.   federal  income  tax
consequences  under the Internal  Revenue Code of 1986, as amended ("the Code"),
resulting from the proposed  contribution (the  "Contribution") of the "Internet
Solutions  Group  Division" by  Intelligroup,  Inc.  ("ITIG") to SeraNova,  Inc.
("SeraNova")  followed by the distribution by ITIG of SeraNova stock pro rata to
the shareholders of ITIG (the  "Distribution")  under Sections  368(a)(1)(D) and
3551  pursuant  to a  plan  described  in the  Contribution  Agreement  and  the
Distribution Agreement dated January 1, 2000 (the "Principal  Agreements").2 All
other terms used herein and not otherwise  defined have the meanings ascribed to
them in the Principal Agreements.

In  rendering  our  opinion,  we have  assumed  that  the  Contribution  and the
Distribution  will occur in accordance with the Principal  Agreements,  and that
there are no other formal or informal  arrangements between ITIG, any parties to
the Distribution,  any parties to the Principal Agreements,  or any shareholders
thereof.  In addition,  we have  assumed the due  authorization,  execution  and
delivery  by  each  party  thereto  of all  documents,  the  genuineness  of all
signatures,  the  authority of all persons  signing such  documents on behalf of
each party thereto,  the legal capacity of all natural persons, the authenticity
of all documents submitted to us as originals and the conformity to the original
document of any document submitted to us as a certified, conformed, or photostat
copy.  Further,  we have  relied on and assumed to be  accurate,  as of the date
hereof and as of the date of the Distribution,  and without further inquiry (and
without  limitation  as  to  knowledge  and  belief),   the  certifications  and
representations made by, and on behalf of, ITIG, SeraNova, and the stockholders,
and all other parties contained in the representation letter addressed to us. We
have not audited or otherwise  attempted to verify the accuracy or  completeness
of any of the foregoing.

          (a)  Premise of Opinion

Our opinion is limited to the federal income tax matters addressed  herein,  and
no other  opinions are rendered  with respect to other federal tax matters or to
any  issues  arising  under  the tax  laws of any

--------
1 Unless otherwise indicated, all section references are to the Internal Revenue
Code and the Treasury Regulations promulgated  thereunder.
2 The  term  Principal  Agreements  refers to the  Contribution  Agreement dated
January 1, 2000 and the  Distribution  Agreement  dated  January  1,  2000.  Any
reference to the "Principal  Agreements"  also includes  Registration  Statement
filed on Form 10 by SeraNova  with the  Securities  and Exchange  Commission  on
January 27, 2000.

<PAGE>

foreign country,  state, or locality.  The opinion  expressed herein is based on
our  interpretation  of the  Code,  income  tax  regulations  thereunder,  court
decisions,  rulings and procedures  issued by the Internal  Revenue Service (the
"Service") as of the date of this letter,  and other  authorities that we deemed
relevant.  Should there be any change,  including any change having  retroactive
effect,  in the Code, the  regulations and rulings issued  thereunder,  judicial
interpretations  thereof, or in current  understanding and interpretation of tax
accounting practices,  the opinion expressed herein would necessarily have to be
reevaluated  in light  of any  such  changes.  Additionally,  should  any of the
representations  or facts set forth  herein  prove to be  either  incomplete  or
inaccurate,  as of  the  date  hereof,  our  opinion  may  change.  We  have  no
responsibility  to  update  our  opinion  for  changes  in  facts,  assumptions,
representations,  or technical  authorities that arise after the date of our tax
opinion.

We have not considered any non-income tax or any state, local, foreign, or other
income tax  consequences,  and  therefore  we express no opinion  regarding  the
treatment that would be accorded the  Distribution  for such  purposes.  We also
express no opinion  on non-tax  issues,  such as  corporate  or  securities  law
matters,  including  whether  any tax  disclosures  included in  documents  made
available  to the  shareholders  of ITIG or the public are  adequate  within the
requirements  of the  securities  or corporate  laws that govern the issuance of
such  documents  and  disclosures.  Further,  our  opinion  does not address the
potential tax  ramifications  to the parties named herein or the stockholders of
any transaction  other than the Distribution and Contribution  described herein.
Our opinion does not address the tax  consequences of the Distribution to a ITIG
stockholder that has a special status, including insurance companies; tax-exempt
entities;  financial  institutions  or  broker-dealers;   foreign  corporations;
estates  and  trusts  not  subject to U.S.  federal  income tax on their  income
regardless  of source;  persons who are not  citizens or residents of the United
States;  and persons  who  acquired  their ITIG common  stock as a result of the
exercise of an employee  stock option,  pursuant to an employee  stock  purchase
plan, or otherwise as compensation.

Opinion
-------

We are of the opinion,  based upon our  interpretation of the Code, the Treasury
regulations,  existing  administrative and judicial  interpretations thereof and
the foregoing facts, information,  assumptions and representations,  all assumed
to be accurate as of the date hereof, that for U.S. federal income tax purposes:

1.   The  transfer by ITIG to SeraNova of the assets of the  Internet  Solutions
     Group  Division  in  exchange  for all the  stock  of  SeraNova,  plus  the
     assumption  by  SeraNova  of  liabilities   associated  with  the  Internet
     Solutions Group Division,  followed by the pro rata  distribution of all of
     the  stock  of  SeraNova  to  ITIG's   shareholders  should  qualify  as  a
     reorganization within the meaning of Section 368(a)(1)(D) of the Code. ITIG
     and  SeraNova  should  each be a "party to the  reorganization"  within the
     meaning of Section 368(b).

2.   ITIG should recognize no gain or loss on the transfer of assets to, and the
     assumption of the  liabilities  referred to above by,  SeraNova in exchange
     for the stock of SeraNova. Sections 361(a) and 357(a) of the Code.

3.   SeraNova should recognize no gain or loss on the receipt of the assets from
     ITIG in exchange for SeraNova stock. Section 1032(a) of the Code.

4.   SeraNova's  basis in the assets  received  from ITIG should be equal to the
     basis of such assets in the hands of ITIG immediately before such transfer.
     Section 362(b) of the Code.

                                      -2-
<PAGE>

5.   SeraNova's  holding  period of each asset received from ITIG should include
     the period during which ITIG held such asset. Section 1223(2) of the Code.

6.   ITIG  should  recognize  no gain or loss upon its  distribution  of all the
     SeraNova stock to the ITIG shareholders. Section 361(c)(1) of the Code.

7.   The ITIG  shareholders  should  recognize  no gain or loss  (and no  amount
     should be included in the income of the ITIG shareholders) upon the receipt
     of SeraNova stock in the Distribution. Section 355(a)(1) of the Code.

8.   The aggregate  basis of the ITIG stock and the SeraNova  stock in the hands
     of each ITIG shareholder  after the Distribution  should be the same as the
     aggregate basis of the ITIG stock held by each ITIG shareholder immediately
     before the Distribution,  allocated between the ITIG stock and the SeraNova
     stock in  proportion  to the fair market value of each in  accordance  with
     Treas. Reg.  ss.1.358-2(a)(2).  Section  358(a)(1), (b)(2),  and (c) of the
     Code.

9.   The  holding  period  of the  SeraNova  stock  received  by the  each  ITIG
     shareholder  should include the period that the ITIG  shareholder  has held
     the ITIG stock as of the date of the  Distribution,  provided that the ITIG
     stock  is  held  as a  capital  by  such  shareholder  on the  date  of the
     Distribution. Section 1223(1) of the Code.

10.  As  provided in  section 312(h), proper allocation  of earnings and profits
     between ITIG and SeraNova should be made in accordance with Treas. Reg. ss.
     1.312-10(a).

This opinion is not binding on the Service,  and there can be no assurance  that
the Service will not take positions  contrary to the opinion  expressed  herein.
However,  if the Service  challenges the tax treatment of the Distribution,  the
opinion  expressed  herein  reflects our  assessment of the probable  outcome of
litigation based solely on an analysis of the existing tax authorities  relating
to the issues that are the subject of this opinion.

This opinion is solely for the benefit of ITIG, SeraNova, and their stockholders
and is not intended to be relied upon by any other  party.  Except to the extent
expressly  permitted hereby, and without the prior written consent of this firm,
our opinion may not be quoted in whole or in part,  or otherwise  referred to in
any documents or delivered to any person or entity.  Any such  authorized  other
party  receiving a copy of our opinion  must consult and rely upon the advice of
their own counsel, accountant, or other advisor.

Very truly yours,

ARTHUR ANDERSEN LLP

By
    Richard D. Moriarty

                                      -3-
<PAGE>

                                  SCHEDULE 8.8

                              SURVIVING AGREEMENTS

     1.   Distribution Documents

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