Document:

Exhibit 10.2

                           Abstract Enterprises Corp.
                         Suite 1095, 555 Burrard Street
                                 Vancouver, B.C.
                                     V7X 1M8

Auteo Media Inc.                                                   April 3, 2000
16700, 198th Avenue N.E.
Woodinville, WA U.S.A.
98072

Dear Sirs:

                               Re: Merger Proposal
                               -------------------

           This letter outlines our understanding of the basic terms and condi-
tions of the proposed  merger by way of plan of  arrangement of Auteo Media Inc.
("AMI") and Abstract Enterprises Corp. ("Abstract"). All dollar amounts referred
to herein are in Canadian dollars, unless otherwise specified.

STRUCTURE
---------

1.         Abstract is a company which is incorporated  under the laws of the
           province of British Columbia.  AMI is a corporation which is
           incorporated under the laws of Nevada.

2.         Abstract is a public  company  whose shares are listed for trading on
           the Canadian  Venture  Exchange  ("CDNX"),  is a reporting  issuer in
           British  Columbia and, on a fully  diluted  basis (i.e.  after giving
           effect to the conversion or exercise of all  outstanding  convertible
           securities including  debentures,  warrants,  options or other right)
           currently has outstanding 11,216,730 million common shares.  Abstract
           owns 5% of the outstanding  shares of Tysa  Corporation  ("Tysa"),  a
           Washington corporation. Abstract does not have any other subsidiaries
           or any material interest in any other corporation.

3.         AMI is a public  company  whose shares are listed on Over The Counter
           Bulletin Board ("OTCBB"). On a fully diluted basis (i.e. after giving
           effect to the conversion or exercise of all  outstanding  convertible
           securities including debentures,  warrants, options or other rights),
           AMI currently has outstanding 8,325,000 common shares.

4.         AMI owns 82.5% of the outstanding shares of Tysa. Other than the
           foregoing, AMI does not have any material interest in any other
           corporation.

ARRANGEMENT
-----------

5.         Subject  to the  terms and  conditions  contained  herein  and to the
           negotiation,  settlement  and  execution of a definitive  arrangement
           agreement (the "Arrangement Agreement"),  it is proposed that AMI and
           Abstract   will  under  take  and   complete  a   corporate   capital
           reorganization  and  restructuring  by  way  of an  arrangement  (the
           "Arrangement)  under  sections  252-253 of the COMPANY  ACT  (British
           Columbia) having the material terms

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                                        2

           described  on the Term Sheet  attached  hereto as Schedule  "B",  and
           involving the following steps:

           (a)    AMI will reorganize its capital structure pursuant to the laws
                  of  Nevada so that it has no more  than  8.75  million  shares
                  outstanding  after the  Arrangement  has been  completed,  but
                  prior to additional financing(s);

           (b)    the exchange of all the outstanding shares of Abstract for AMI
                  Shares on the basis that every one  common  share of  Abstract
                  will be exchanged for 0.25 common share of AMI;

           (c)    Abstract will cancel the 750,000 performance escrow shares
                  currently issued and outstanding;

           (d)    Abstract  will use its best  efforts to  isolate  the non Tysa
                  assets and liabilities into a separate  corporate entity which
                  shall survive the Arrangement, and which entity shall have the
                  same  shareholders  as Abstract had before the Arrangement was
                  completed. This new entity will not be a reporting issuer; and

           (e)    the  common  shares  of  Abstract  listed  on the CDNX will be
                  delisted  from the CDNX after the closing of the  Arrangement,
                  and the ownership of Tysa shall be  consolidated  so that Tysa
                  is a wholly owned subsidiary of AMI.

           On completion of the Arrangement, any Shares of AMI or Abstract owned
           by the other will be automatically cancelled.It is our intention that
           immediately  following  the  Arrangement, AMI will have approximately
           8.75  million  common  shares  outstanding of which approximately 70%
           (i.e. 6,000,000) will be held by the former shareholders of  AMI  and
           approximately  30%  (i.e.  2,616,682) will  be  held  by the Abstract
           shareholders  (being the former  shareholders of Abstract, other than
           AMI),  on a fully  diluted  basis, after  having  given effect to the
           issuance  of  any   outstanding   convertible   securities, including
           debentures, warrants, options or other rights.

6.         It is recognized  that to the extent that any outstanding convertible
           securities, including debentures, warrants, options  or  other rights
           of Abstract, have not been converted into shares of Abstract prior to
           the closing  of the  Arrangement, such  convertible  securities  will
           thereafter be cancelled.

ARRANGEMENT AGREEMENT
---------------------

7.         In addition to the usual representations, warranties, terms and con-
           ditions commonly contained in such agreements, the Arrangement Agree-
           ment shall provide:

           (i)    the board of directors of AMI shall  consist of five  members,
                  two of whom  shall  be  nominated  by AMI and one by  Abstract
                  management  with the  remaining  two  nominated by the initial
                  three;

           (ii)   any outstanding  convertible securities of Abstract (including
                  debentures,  warrants options or other rights), which have not
                  been converted into shares of Abstract prior to the closing of
                  the Arrangement,  shall, on completion of the Arrangement,  be
                  cancelled;

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                                        3

           (iii)  following the Arrangement, Abstract's current Vancouver office
                  will be closed;

           (iv)   notwithstanding  any other  agreements made prior to the com-
                  pletion of the Arrangement,  the Abstract  shareholders  and
                  management  shall at any time, and from time to time,  be
                  entitled  to sell,  option or  otherwise  dispose of, any
                  Abstract common shares owned thereby;

           (v)    at any time,  AMI shall be entitled to  establish  an employee
                  stock option plan  pursuant to which options may be issued to
                  employees of AMI to purchase up to that number of AMI common
                  shares set forth  below at an  exercise  price not less than
                  the price of US$6.00 per common  share of AMI,  as per AMI's
                  February proposed  private placement of 225,000 common shares.
                  The number of AMI common shares  available in respect of such
                  stock  option plan shall not exceed,  after the exchange
                  contemplated under the Arrangement,  10% of the outstanding
                  common shares  of AMI on a fully  diluted  basis  calculated
                  immediately  prior to the completion of the Arrangement pro-
                  vided that such options shall not vest prior to completion of
                  the Arrangement;

           (vi)   except as otherwise provided herein, all shareholders' agree-
                  ments made in respect  of the  securities of  Abstract  or AMI
                  shall  terminate  and be of no further force and effect on
                  completion of the Arrangement;

           (vii)  Abstract may issue to its directors and officers, at any time
                  prior to the completion of the Arrangement, pursuant to
                  options  previously  approved by the board of Abstract,  and
                  exercised by option holders, up to an additional 200,000
                  common shares of Abstract;

           (viii) immediately prior to completion of the Arrangement, Abstract
                  will provide an indemnity to its then  directors and officers,
                  such indemnity to be mutually satisfactory to the parties
                  hereto; and

           (ix)   if Abstract is unable to isolate the non Tysa assets and lia-
                  bilities into a separate corporate entity which shall survive
                  the Arrangement as contemplated in 5. (a) above,  Abstract
                  shall indemnify and hold AMI harmless from any excess of
                  Abstract's non Tysa liabilities over non Tysa assets (the
                  "Excess") as disclosed on Abstract's audited financial
                  statements or in the Arrangement Agreement,  and agree to
                  execute a definitive indemnity agreement, said agreement to be
                  specific to and  limited to the  Excess,  and such  indemnity
                  agreement  to be  mutually satisfactory to the parties hereto.
                  On closing of the Arrangement,  if there is any Excess,
                  Abstract will agree to post collateral, such collateral agree-
                  able to both  parties,  having a fair market value  equivalent
                  to or greater  than the Excess, so that such collateral may be
                  used to satisfy the Excess within ninety days of closing.

CONDITIONS PRECEDENT TO THE ARRANGEMENT
---------------------------------------

8.         The proposed  Arrangement is conditional on the following  conditions
           being satisfied on or before the earlier of the Arrangement  date or
           the specific date set  forth  herein  and the  parties  hereto  agree
           to  cooperate  and use their respective best efforts to satisfy such
           conditions:

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                                        4

           (i)    execution of the definitive Arrangement Agreement on or before
                  April 21, 2000, unless otherwise agreed;

           (ii)   obtaining all necessary approvals for the Arrangement includ-
                  ing approval by the  directors  and  shareholders  of each of
                  AMI and Abstract and all necessary court and regulatory
                  approvals;

           (iii)  notices of dissent given by Abstract shareholders with respect
                  to the Arrangement do not in the aggregate exceed 2,500,000
                  Abstract shares;

           (iv)   each of AMI and  Abstract  agree to use their best efforts and
                  to cooperate and assist each other with their due diligence,
                  and shall have completed and be satisfied  with its due
                  diligence  review of the  other on or before  April 21, 2000,
                  unless otherwise agreed;

           (v)    Abstract shall have obtained conditional approval of the
                  Arrangement, if required, by the CDNX;

           (vi)   except  for  the  conversion  of  any  currently  outstanding
                  convertible preferred  shares or  debentures  or the exercise
                  of any  currently  outstanding options or  warrants or similar
                  rights,  except for AMI's  planned  issuance of 1,000,000
                  additional shares via a Registration 506 offering,  and except
                  for the issue and exercise of the additional stock options
                  permitted to be issued by AMI pursuant to paragraph  7(v), and
                  by Abstract  pursuant to paragraph  7(vii),  no additional
                  shares  of any  class  in the  capital  of  Abstract  or AMI
                  (or any securities including convertible debentures, warrants,
                  options or other rights to acquire any shares in the  capital
                  of Abstract or AMI) shall be issued prior to the completion of
                  the Arrangement;

           (vii)  there shall not have occurred any material adverse change in
                  the finances, operations or business of Abstract or AMI and
                  the audited financial results of their respective  operations,
                  for the fiscal years ended  January 31, 2000 and December 31,
                  1999,  respectively,  shall not vary materially adversely from
                  the draft  financial  results as set out in the form attached
                  as Schedule A, and the actual financial results for the period
                  up to the date of the Arrangement shall not vary  materially
                  adversely from the pro forma financial plans as set out in
                  Schedule A;

           (viii) if  required  as a result  of its due  diligence,  Abstract
                  shall  have received from its financial advisors, on or before
                  April 21, 2000, or such other date as is acceptable to
                  Abstract,  a  satisfactory  valuation/fairness  opinion with
                  respect to the Arrangement;

           (ix)   AMI shall have obtained all necessary  approvals  including
                  but not limited to shareholder and regulatory upon completion
                  of the Arrangement;

           (x)    AMI and Abstract shall have received from their respective tax
                  and legal advisors satisfactory opinions with respect to the
                  Arrangement;

           (xi)   all  other  consents,  orders  and  approvals,  including
                  regulatory  and judicial,  required  for the  completion  of
                  the  Arrangement  shall  have  been obtained or received from
                  the persons, authorities or bodies having jurisdiction in the
                  circumstances;

           (xii)  neither of Abstract nor AMI nor any of their subsidiaries
                  shall be a party to any ACTIONS,  SUITS or proceedings  which
                  could  materially  adversely affect their

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                                        5

                  business or financial condition, and no such actions, suits or
                  proceedings shall be contemplated or shall have been
                  threatened; and

           (xiii) the shareholders of AMI and Abstract shall have approved the
                  arrangement.

TIMETABLE
---------

9.         AMI and Abstract  shall  cooperate and use their  respective  best
           efforts to complete  various  steps  to  effect  the  Arrangement  in
           accordance  with the timetable set out below.

<TABLE>

           <S>    <C>                                                                          <C>

           (i)    approval of this letter of intent by the board of directors                  April 7, 2000
                  of each of AMI and Abstract and appropriate press
                  release

           (ii)   completion of valuation/fairness opinion                                     April 21, 2000

           (iii)  completion of due diligence                                                  April 21, 2000

           (iv)   approval by directors of AMI and Abstract and                                April 21, 2000
                  execution of Arrangement Agreement

           (v)    mailing of information circular to Abstract                                  April 21, 2000 + 33
                  Shareholders                                                                 days

           (vi)   meetings of AMI and Abstract Shareholders to approve                         April 21, 2000 + 56
                  Arrangement                                                                  days

           (vii)  court and regulatory approvals of Arrangement                                April 21, 2000 + 56
                                                                                               days + 1 week

           (viii) effective date of Arrangement                                                June 30, 2000

</TABLE>

PRESS RELEASES
--------------

10.        Abstract and AMI will consult with respect to the content and timing
           of any press releases  relating to the  transactions  contemplated
           hereby,  however no press releases shall be issued without the other
           parties' consent.

If you are in agreement  with the foregoing  outline of the terms and conditions
relating to the proposed  Arrangement  of our  companies,  please so indicate by
executing the enclosed copy of this agreement in the space  indicated  below and
returning it to us.

                                           Yours truly,

                                           Abstract Enterprises Corp.

                                           Per: /s/ MICHAEL W. KINLEY
                                                --------------------------------
                                                    Michael W. Kinley, President

           The undersigned hereby agrees to the foregoing.

           Auteo Media Inc.

           Per: /s/ STEVEN VAN LEEUWEN
                ---------------------------------
                    Steven van Leeuwen, President

J:\951221\Arrange\Merger Proposal.docExhibit 10.3

                              ARRANGEMENT AGREEMENT
                              ---------------------

                  THIS ARRANGEMENT AGREEMENT dated as of the 21st day of April,
                  2000 is

AMONG:

                  ABSTRACT  ENTERPRISES  CORP., a corporation  incorporated pur-
                  suant to the provisions of the COMPANY ACT (British Columbia)

                  ("Abstract")

AND:

                  AUTEO MEDIA INC., a corporation incorporated pursuant to the
                  laws of the State of Nevada

                  ("AMI")

AND:

                  ABSTRACT OIL & GAS INC., a corporation  incorporated  pursuant
                  to the  provisions of the COMPANY ACT (British Columbia)

                  ("Newco")

WHEREAS:

A.                By a Letter of Intent dated April 3, 2000 between Abstract and
AMI, Abstract agreed,  among other things, to proceed with a proposed  corporate
restructuring  by way of a Plan of Arrangement  whereby Abstract will reorganize
its capital,  certain  assets of Abstract will be  transferred  from Abstract to
Newco,  a series of share  exchanges  will take place  with the result  that the
Shareholders  of Abstract  will have  equivalent  shareholdings  in Abstract and
Newco,  and Abstract will merge with AMI based on a share  exchange  between the
Abstract Shareholders and AMI;

B.                Abstract  proposes to convene a meeting of its  shareholders
to consider  the  Arrangement  under  section 252 of the BCCA,  on the terms and
conditions set forth in the Plan of Arrangement annexed as Exhibit I hereto;

C.                Each of the parties to this Agreement has agreed to partici-
pate in and support the Arrangement.

                  NOW  THEREFORE,  in  consideration  of the  premises  and  the
respective  covenants and agreements  herein  contained,  and for other good and
valuable  consideration,  the  receipt  and

<PAGE>

                                      -2-

sufficiency of which are hereby  acknowledged by each of the parties hereto, the
parties hereto hereby covenant and agree as follows:

                                    ARTICLE 1
                     DEFINITIONS, INTERPRETATION AND EXHIBIT

1.1               DEFINITIONS:  In this  Agreement, unless there is something in
                  -----------
the subject matter or context inconsistent therewith, the following  capitalized
words and terms shall have the following meanings:

        (a)       "AMI" means Auteo Media Inc., a company incorporated under the
                  laws of the State of Nevada;

        (b)       "AMI COMMON SHARES means the common shares without par value
                  which AMI is authorized to issue;

        (c)       "ABSTRACT"  means Abstract  Enterprises  Corp., a company
                  incorporated  under the provisions of the BCCA;

        (d)       "ABSTRACT  COMMON  SHARES" means the common shares without par
                  value which Abstract is authorized to issue;

        (e)       "ABSTRACT MEETING" means the annual and extraordinary general
                  meeting of the  Shareholders of Abstract and any adjournments
                  thereof to be held to, among other  things,  consider and, if
                  deemed advisable, approve the Arrangement;

        (f)       "ABSTRACT  PREFERRED SHARES" means the preferred shares which
                  are to be issued under the Arrangement partly in exchange for
                  Exchangeable  Shares which are  immediately  thereafter to be
                  exchanged on a one to one basis for Newco Common Shares;

        (g)       "AGREEMENT"  means  this  agreement   including  the  exhibit
                  attached  hereto as the same may be  supplemented  or amended
                  from time to time in writing signed by the parties;

        (h)       "ARRANGEMENT"  means the arrangement  pursuant  to section 252
                  of the BCCA as  contemplated  by the provisions of this Agree-
                  ment and the Plan of Arrangement;

        (i)       "BCCA" means the COMPANY ACT, R.S.B.C. 1996, Chapter 62, as
                  amended;

        (j)       "BUSINESS DAY" means a day which is not a Saturday, Sunday or
                  statutory holiday;

        (k)       "CHARTER DOCUMENTS" means memorandum and articles;

<PAGE>

                                      -3-

        (l)       "CLOSING  DATE" means the later of July 31, 2000, the closing
                  of the  Financing (as defined  below),  or such other date as
                  may be mutually agreed upon by the parties;

        (m)       "COURT" means the Supreme Court of British Columbia;

        (n)       "EFFECTIVE  DATE"  means the date on which a  certified  copy
                  of the Final  Order is accepted by the Registrar;

        (o)       EXCHANGEABLE  SHARES"  means  the  Abstract  Common  Shares as
                  renamed and  redesignated  under paragraph 3.1 of the Plan of
                  Arrangement;

        (p)       "FINAL ORDER" means the final order of the Court approving the
                  Arrangement;

        (q)       "INFORMATION  CIRCULAR"  means  the  information  circular  of
                  Abstract to be sent to the shareholders of Abstract in connec-
                  tion with the Abstract Meeting;

        (r)       "INTERIM ORDER" means the interim order of the Court providing
                  advice and directions in connection with the Abstract Meeting
                  and the Arrangement;

        (s)       "NEWCO" means Abstract Oil & Gas Inc.,  incorporated under the
                  provisions of the BCCA to facilitate the Arrangement;

        (t)       "NEWCO COMMON SHARES" means the common shares which Newco is
                  authorized to issue;

        (u)       "NEWCO PREFERRED  SHARES" means the preferred shares of Newco
                  which are to be issued under the  Arrangement in exchange for
                  the  Non-Internet  Assets of Abstract (as defined in the Plan
                  of Arrangement attached as Exhibit I hereto);

        (v)       "PERSON"   means   and   includes   an    individual,    sole
                  proprietorship,   partnership,   unincorporated  association,
                  unincorporated syndicate, unincorporated organization, trust,
                  body corporate, a trustee,  executor,  administrator or other
                  legal   representative   and  the  Crown  or  any  agency  or
                  instrumentality thereof;

        (w)       "PLAN OF ARRANGEMENT" means the plan of arrangement  attached
                  to this  Agreement  as  Exhibit I as the same may be  amended
                  from time to time in writing signed by the parties;

        (x)       "RECORD  DATE"  means the close of business on that day which
                  is four  Business  Days prior to the  Effective  Date for the
                  purpose of determining the Shareholders of Abstract  entitled
                  to receive share certificates  representing AMI Common Shares
                  and Newco Common Shares under the Arrangement;

        (y)       "REGISTRAR" means the Registrar of Companies under the BCCA;
                  and

<PAGE>

                                      -4-

        (z)       "SHAREHOLDERS" means the shareholders of Abstract.

1.2               CURRENCY:  All amounts of money which are  referred to in this
                  --------
Agreement  are  expressed  in lawful money of Canada unless otherwise specified.

1.3               INTERPRETATION NOT AFFECTED BY HEADINGS: The division of this
                  ---------------------------------------
Agreement into articles, sections, subsections, paragraphs and subparagraphs and
the insertion of  headings  are for  convenience  of  reference  only and shall
not affect the construction or  interpretation  of the provisions of this Agree-
ment.  The terms "this Agreement",  "hereof", "herein", "hereunder" and similar
expressions refer to this  Agreement and the exhibits  hereto as a whole and not
to any particular article, section, subsection, paragraph or subparagraph hereof
and include any agreement or instrument supplementary or ancillary hereto.

1.4               NUMBER AND GENDER: In this Agreement, unless the context other
                  -----------------
wise requires, words importing the singular number only shall include the plural
and vice versa and words  importing  the use of either gender shall include both
genders and neuter.

1.5               DATE FOR ANY  ACTION:  In the  event  that any date on which
                  --------------------
any action is required to be taken hereunder by Abstract,  AMI or Newco is not a
Business Day in the place where the action is required to be taken,  such action
shall be required to be taken on the next succeeding day which is a Business Day
in such place.

1.6               MEANING:  Words and phrases  used herein and defined in the
                  -------
BCCA shall have the same meaning herein as in the BCCA unless the context other-
wise requires.

1.7               EXHIBIT:  Attached  hereto and deemed to be incorporated  into
                  -------
and form part of this  Agreement  as Exhibit I is the Plan of Arrangement.

                                    ARTICLE 2
                                   ARRANGEMENT

2.1               ARRANGEMENT:  The parties agree to effect the  Arrangement
                  -----------
pursuant to the  provisions  of section 252 of the BCCA on the terms and subject
to the conditions contained in this Agreement and the Plan of Arrangement.

2.2               EFFECTIVE DATE OF ARRANGEMENT:  The Arrangement  shall become
                  -----------------------------
effective on the Effective Date as set out in the Plan of Arrangement.

2.3               COMMITMENT TO EFFECT:  The parties shall each use all reason-
                  --------------------
able  efforts  and do all  things  reasonably  required  to  cause  the  Plan of
Arrangement to become effective within two weeks of the Closing Date, or by such
other date as the parties may mutually determine,  and in conjunction  therewith
to cause the transactions and conditions contemplated by sections 5.1 and 6.1 to
be completed prior to the Effective Date. Without limiting the generality of the
foregoing,  the parties

<PAGE>

                                      -5-

shall  proceed  forthwith to apply for the Interim  Order and,  upon  obtainment
thereof,  Abstract  shall call the  Abstract  Meeting  and mail the  Information
Circular to the Shareholders.

2.4               FILING OF FINAL ORDER:  Upon the  Shareholders  approving the
                  ---------------------
Arrangement  by special  resolution  in  accordance  with the  provisions of the
Interim  Order and the BCCA,  Abstract  obtaining  the Final Order and the other
conditions contained in Article 6 hereof being complied with or waived, Abstract
shall file a certified  copy of the Final Order with the  Registrar  pursuant to
subsection  252(3)  of the BCCA on its  behalf  and on  behalf  of AMI and Newco
together  with such other  documents  as may be  required in order to effect the
Arrangement  and shall  request that such  certified  copy of the Final Order be
accepted for filing by the  Registrar.  Upon such filing by the  Registrar,  the
documents  held in  escrow  in  accordance  with  section  6.2  hereof  shall be
automatically  released and the parties shall  exchange such other  documents as
may  be  necessary  or  desirable  in  connection  with  the  completion  of the
transactions contemplated by this Agreement and the Plan of Arrangement.

                                    ARTICLE 3
                         REPRESENTATIONS AND WARRANTIES

3.1               REPRESENTATIONS  AND  WARRANTIES:  Each of the parties  hereby
                  --------------------------------
represents  and warrants to each of the other parties that:

         (a)      it is a corporation duly  incorporated and validly  subsisting
                  under the laws of its jurisdiction of  incorporation,  and has
                  full capacity and  authority to enter into this  Agreement and
                  to perform its covenants and obligations hereunder;

         (b)      subject to receipt of the approval of the shareholders of AMI,
                  it has taken all corporate  actions necessary to authorize the
                  execution and delivery of this  Agreement  and this  Agreement
                  has been duly executed and delivered by it;

         (c)      neither the execution  and delivery of this  Agreement nor the
                  performance of any of its covenants and obligations  hereunder
                  will  constitute  a  material  default  under,  or be  in  any
                  material  contravention  or breach of (i) any provision of its
                  Charter  Documents or other constating or governing  corporate
                  documents,  (ii) any judgment,  decree,  order,  law, statute,
                  rule or regulation applicable to it, or (iii) any agreement or
                  instrument to which it is a party or by which it is bound; and

         (d)      no dissolution,  winding up,  bankruptcy,  liquidation or
                  similar  proceedings  have been commenced or are pending or
                  proposed in respect of it.

                                    ARTICLE 4
                                    COVENANTS

4.1               COVENANTS: Each of the parties covenants with the others that
                  ---------
it will do and  perform  all such acts and  things,  and execute and deliver all
such agreements, assurances, notices and other

<PAGE>

                                      -6-

documents and  instruments,  as may  reasonably  be required to  facilitate  the
carrying out of the intent and purpose of this Agreement.

4.2               INTERIM ORDER AND FINAL ORDER:  The parties  acknowledge  that
                  -----------------------------
Abstract will apply to and obtain from the Court, pursuant to section 252 of the
BCCA,  the Interim Order  providing  for,  among other  things,  the calling and
holding of the Abstract  Meeting for the purpose of  considering  and, if deemed
advisable, approving and adopting the Arrangement. The parties each covenant and
agree that if the approval of the Arrangement by the Shareholders of Abstract as
set out in  subsection  6.1(b)  hereof is  obtained,  Abstract  will  thereafter
(subject to the exercise of any  discretionary  authority  granted to Abstract's
directors  by the  Shareholders)  take  the  necessary  actions  to  submit  the
Arrangement  to the Court  for  approval  and apply for the Final  Order in such
fashion as the Court may direct and, subject to compliance with any of the other
conditions  provided  for in Article 6 hereof  and to the rights of  termination
contained in Article 7 hereof,  file with the Registrar,  as soon as practicable
thereafter,  pursuant to subsection  252(3) of the BCCA, a certified copy of the
Final Order to give effect to the Arrangement.

                                    ARTICLE 5
                      ABSTRACT REORGANIZATION TRANSACTIONS

5.1               ABSTRACT REORGANIZATION TRANSACTIONS: On or before the Closing
                  ------------------------------------
Date, the parties shall enter into such agreements as may be required confirming
the basis on which Abstract shall effect the  reorganization  of its capital and
transfer its Non-Internet Assets (as defined in the Plan of Arrangement attached
as Exhibit I hereto) to Newco,  and  establishing  procedures  for dealing  with
transitional matters arising out of the Arrangement.

                                    ARTICLE 6
                                   CONDITIONS

6.1               CONDITIONS PRECEDENT:  The respective obligations of the
                  --------------------
parties to complete the  transactions  contemplated  by this  Agreement  and the
obligation of Abstract to file a certified copy of the Final Order on its behalf
and on behalf of AMI and Newco with the Registrar  pursuant to subsection 252(3)
of the BCCA required to give effect to the Arrangement  with the Registrar shall
be subject to the satisfaction of the following conditions:

          (a)     the Interim Order shall have been granted in form and sub-
                  stance satisfactory to Abstract;

          (b)     the  Arrangement  and  this  Agreement,   with  or  without
                  amendment, shall have been approved at the Abstract Meeting
                  by the  Shareholders  of  Abstract in  accordance  with the
                  provisions of the BCCA, the Charter  Documents of Abstract,
                  the Interim Order and the  requirements  of any  applicable
                  regulatory authorities;

          (c)     the Final Order shall have been obtained in form and substance
                  satisfactory to

<PAGE>

                                      -7-

                  Abstract;

          (d)     the Canadian Venture Exchange shall have conditionally
                  approved the Arrangement;

          (e)     all other  consents,  orders,  regulations  and  approvals,
                  including  regulatory  and  judicial  approvals  and orders
                  required or necessary or desirable  for the  completion  of
                  the  transactions  provided for in this  Agreement  and the
                  Plan of  Arrangement  shall have been  obtained or received
                  from the Persons, authorities or bodies having jurisdiction
                  in the circumstances;

          (f)     there shall not be in force any order or decree restraining or
                  enjoining the consummation of the transactions contemplated by
                  this Agreement and the Arrangement;

          (g)     the parties shall have entered into such agreements as
                  required  pursuant to section 5.1 of this Agreement;

          (h)     the parties shall have obtained all necessary approvals for
                  the  Arrangement  including  approval by the  directors and
                  shareholders  of each of AMI and Abstract and all necessary
                  court and regulatory approvals;

          (i)     except for the conversion of any currently outstanding conver-
                  tible preferred shares or debentures or the exercise of any
                  currently outstanding  options or warrants or similar  rights,
                  except for AMI's planned issuance of 1,000,000 additional
                  shares via a Registration 506 offering,  except for the
                  Financing,  and except for the issue and exercise of the addi-
                  tional stock options permitted to be issued by AMI in an
                  amount not to exceed 10% of the number of outstanding  common
                  shares of AMI after completion of the transactions comprising
                  the Arrangement,  and by Abstract in an amount not to exceed
                  200,000 stock options,  no additional  shares of any class in
                  the capital of Abstract or AMI (or any securities  including
                  convertible debentures,  warrants,  options or other rights to
                  acquire any shares in the capital of Abstract or AMI) shall be
                  issued prior to the  completion  of the Arrangement;

          (j)     there shall not have occurred any material  adverse  change
                  in the finances,  operations or business of Abstract or AMI
                  and the  audited  financial  results  of  their  respective
                  operations, for the fiscal years ended January 31, 2000 and
                  December 31, 1999, respectively,  shall not vary materially
                  adversely  from the draft  financial  results as set out in
                  the form  attached as Schedule A, and the actual  financial
                  results  for the  period up to the date of the  Arrangement
                  shall  not vary  materially  adversely  from the pro  forma
                  financial plans as set out in Schedule A;

          (k)     if  required  as a result  of its due  diligence,  Abstract
                  shall have  received  from its  financial  advisors,  on or
                  before  the  Effective  Date,  or  such  other  date  as is
                  acceptable to Abstract,  a satisfactory  valuation/fairness
                  opinion with respect to the

<PAGE>

                                      -8-

                  Arrangement;

          (l)     AMI and Abstract shall have received from their  respective
                  tax and legal advisors  satisfactory  opinions with respect
                  to the Arrangement.

          (m)     neither of Abstract  nor AMI nor any of their  subsidiaries
                  shall be a party to any actions, suits or proceedings which
                  could   materially   adversely  affect  their  business  or
                  financial  condition,   and  no  such  actions,   suits  or
                  proceedings  shall  be  contemplated  or  shall  have  been
                  threatened; and

          (n)     AMI shall  have  completed  a  financing  of  approximately
                  US$3-5  Million,  but  not  less  than  US$3  Million  (the
                  "Financing"),  on or before  September  30, 2000;  provided
                  however that the September 30, 2000 date may be extended by
                  the mutual  agreement  of the  parties,  for no  additional
                  consideration.

Except for the conditions  set forth in subsections  (a), (b), (c) and (d) above
any of the  foregoing  conditions  may be waived at the  discretion of any party
whose interests are affected by such condition.

6.2               PRE-CLOSING:  Unless this Agreement is terminated  earlier
                  -----------
pursuant to the provisions hereof, the parties shall on the Closing Date deliver
to the other of them:

         (a)      the  documents  required to be  delivered  by it  hereunder to
                  complete the transactions  contemplated hereby,  provided that
                  each such  document  required to be dated the  Effective  Date
                  shall be dated as of, or become  effective  on, the  Effective
                  Date  and  shall be held in  escrow  to be  released  upon the
                  acceptance for filing by the Registrar of the Final Order; and

         (b)      written  confirmation as to the  satisfaction  or waiver by it
                  of the conditions  in its favour contained  in this Agreement;

6.3               MERGER OF CONDITIONS:  The conditions set out in section 6.1
                  --------------------
hereof shall be conclusively  deemed to have been satisfied,  waived or released
upon the acceptance for filing by the Registrar of a certified copy of the Final
Order under subsection 252(3) of the BCCA.

6.4               MERGER OF  REPRESENTATIONS,  WARRANTIES  AND  COVENANTS:  The
                  -------------------------------------------------------
provisions of sections 3.1 and 4.1 hereof shall be  conclusively  deemed to have
been  satisfied in all respects by the filing with the  Registrar of a certified
copy of the Final Order  required to give effect to the  Arrangement,  and shall
accordingly  merge in and not survive the  effectuation  of the  Arrangement  by
filing of the Final Order with the Registrar giving effect to the Arrangement.

                                    ARTICLE 7
                            AMENDMENT AND TERMINATION

<PAGE>

                                      -9-

7.1               AMENDMENT:  Subject to any mandatory applicable  restrictions
                  ---------
under  the  BCCA or the  Final  Order,  this  Agreement  including  the  Plan of
Arrangement  may,  at any time and from time to time before or after the holding
of the Abstract  Meeting,  but prior to the  Effective  Date,  be amended by the
written  agreement of the parties  hereto  without,  subject to applicable  law,
further notice to or authorization on the part of the Shareholders of Abstract.

7.2               CESSATION  OF RIGHT:  The right of Abstract or any other party
                  -------------------
to amend the Plan of Arrangement  pursuant to section 7.1 shall be  extinguished
at the time at which the  certified  copy of the Final  Order is filed  with the
Registrar pursuant to subsection 252(3) of the BCCA.

                                    ARTICLE 8
                                     GENERAL

8.1               NOTICE:  All notices  which may or are required to be given
                  ------
pursuant to any provision  of this  Agreement  shall be given or made in writing
and  shall be delivered or telecopied, addressed as follows:

(a)   in the case of Abstract or Newco:    (b)   in the case of AMI:

      Suite 1095 - 555 Burrard Street            16700 - 198th Avenue N.E.
      Vancouver, BC                              Woodinville, WA  98072
      V7X 1M8                                    ATTENTION:  Steven Van Leeuwen,
      ATTENTION:  Mr. Michael Kinley,                        President
                  President                      Telecopy number (425) 844-2850
      Telecopy number:  (604) 685-1267

      with a copy to:                            with a copy to:

      Reid & Company                             Foster Swift Collins & Smith
      1040 - 1055 West Hastings Street           313 South Washington Square
      Vancouver, BC                              Lansing, Michigan U.S.A.
      V6E 2E9                                    48933-2193
      ATTENTION:  R.S. (Rob) Doman               ATTENTION:  Mr. Louis K. Nigg
      Telecopy number (604) 687-5872             Telecopy number (517) 371-8200

8.2               ASSIGNMENT:  None of the parties may assign its rights or
                  ----------
obligations  under this Agreement or the  Arrangement  without the prior written
consent of the others of them.

<PAGE>

                                      -10-

8.3               BINDING  EFFECT:  This  Agreement  and the  Arrangement  shall
                  ---------------
be  binding  upon and  shall  ensure to the  benefit  of the  parties  and their
respective successors and permitted assigns.

8.4               WAIVER:  Any waiver or release of the  provisions of this
                  ------
Agreement,  to be  effective,  must be in  writing  and  executed  by the  party
granting such waiver or release.

8.5               GOVERNING  LAW:  This  Agreement  shall be governed by and be
                  --------------
construed in  accordance  with the laws of the Province of British  Columbia and
the laws of Canada applicable  therein and shall be treated in all respects as a
British Columbia contract.

8.6               COUNTERPARTS: This Agreement may be executed in one or more
                  ------------
counterparts  and by facsimile,  each of which shall be deemed to be an original
but all of which together shall constitute one and the same instrument.

8.7               EXPENSES:  All expenses  incurred in  connection  with this
                  --------
Agreement, the Arrangement and the transactions  contemplated hereby and thereby
shall be borne entirely by Abstract.

8.9               TIME OF ESSENCE:  Time is of the essence of this Agreement.
                  ---------------

<PAGE>

                                      -11-

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

                           ABSTRACT ENTERPRISES CORP.

                           Per:
                               -------------------------------------------------

                           AUTEO MEDIA INC.

                           Per:
                               -------------------------------------------------

                           ABSTRACT OIL & GAS INC.

                           Per:
                               -------------------------------------------------

<PAGE>

                                      -12-

                                    EXHIBIT I
                          TO THE ARRANGEMENT AGREEMENT
                    DATED THE 17TH DAY OF APRIL, 2000 BETWEEN
                           ABSTRACT ENTERPRISES CORP.,
                                AUTEO MEDIA INC.
                                       AND
                                      NEWCO

                               PLAN OF ARRANGEMENT
                               -------------------

                        ARRANGEMENT UNDER SECTION 252 OF
                       THE COMPANY ACT (BRITISH COLUMBIA)

                                    ARTICLE 1
                         DEFINITIONS AND INTERPRETATION

1.1               DEFINITIONS:  In this plan of arrangement,  unless there is
                  -----------
something in the subject matter or context inconsistent therewith, the following
capitalized words and terms shall have the following meanings:

         (a)      "AMI" means Auteo Media Inc., a company incorporated under the
                  laws of the State of Nevada;

         (b)      "AMI COMMON SHARES" means the common shares in the capital of
                  AMI which AMI is authorized to issue;

         (c)      "ABSTRACT" OR THE "CORPORATION" means Abstract  Enterprises
                  Corp.,a company incorporated under the provisions of the BCCA;

         (d)      "ABSTRACT  COMMON  SHARES" means the common shares without par
                  value which Abstract is authorized to issue;

         (e)      "ABSTRACT MEETING" means the annual and extraordinary general
                  meeting of the  Abstract  Shareholders  and any  adjournments
                  thereof to be held to, among other  things,  consider and, if
                  deemed advisable, approve the Arrangement;

         (f)      "ABSTRACT NON-INTERNET ASSETS" means all of Abstract's assets
                  and  obligations  other than  Abstract's  5% interest in Tysa
                  Corporation,  and its  option  to  acquire  a  further  12.5%
                  interest in Tysa Corporation;

         (g)      "ABSTRACT  PREFERRED SHARES" means the preferred shares which
                  are to be issued

<PAGE>

                                      -13-

                  under the Arrangement partly in exchange for the Exchangeable
                  Shares which are immediately  thereafter to be exchanged on a
                  one to one basis for Newco Common Shares;

         (h)      "ABSTRACT  REDEMPTION AMOUNT" means the amount for which each
                  Abstract  Preferred  Share is  redeemable,  as referred to in
                  paragraph 3.1(g) of the Plan of Arrangement, as determined by
                  the directors of Abstract in accordance  with the  redemption
                  provisions of the Abstract Preferred Shares;

         (i)      "ABSTRACT SHAREHOLDERS" means the shareholders of Abstract;

         (j)      "ARRANGEMENT" means the arrangement pursuant to section 252 of
                  the BCCA on the terms and conditions set out herein;

         (k)      "ARRANGEMENT AGREEMENT" means the arrangement agreement dated
                  as  of  April  21,  2000  between  Abstract,  AMI  and  Newco
                  including   the  exhibits   attached   thereto,   as  may  be
                  supplemented  or amended from time to time in writing  signed
                  by the parties;

         (l)      "BCCA" means the COMPANY ACT, R.S.B.C. 1996, Chapter 62, as
                  amended;

         (m)      "BUSINESS DAY" means a day which is not a Saturday, Sunday or
                  statutory holiday;

         (n)      "COURT" means the Supreme Court of British Columbia;

         (o)      "DEPOSITORY" means the Transfer Agent;

         (p)      "EFFECTIVE  DATE" means the date on which the Arrangement
                  becomes  effective in accordance with the provisions of the
                  Arrangement Agreement;

         (q)      "EFFECTIVE TIME" means 5:00 p.m. (Vancouver time) on the
                  Effective Date;

         (r)      "EXCHANGEABLE  SHARES"  means the Abstract  Common  Shares as
                  renamed and  redesignated  pursuant to subsection 3.1(a) of
                  this Plan of Arrangement;

         (s)      "FINAL ORDER" means the final order of the Court approving the
                  Arrangement;

         (t)      "ITA" means Income Tax Act (Canada);

         (u)      "INTERIM ORDER" means the interim order of the Court providing
                  advice and directions in connection with the Abstract Meeting
                  and the Arrangement;

         (v)      "NEWCO" means Abstract Oil & Gas Inc., incorporated  under the
                  provisions of the BCCA to facilitate the Plan of Arrangement;

<PAGE>

                                      -14-

         (w)      "NEWCO COMMON  SHARES" means the common shares  without par
                  value which Newco is authorized to issue as the same are
                  constituted on the date hereof;

         (x)      "NEWCO  PREFERRED  SHARES"  means the  preferred  shares of
                  Newco which are to be issued under the Arrangement in exchange
                  for the Abstract Non-Internet Assets;

         (y)      "NEWCO  REDEMPTION  AMOUNT"  means the  amount for which each
                  Newco  Preferred  Share  is  redeemable,  as  referred  to in
                  paragraph 3.1(f) of the Plan of Arrangement, as determined by
                  the  directors  of Newco in  accordance  with the  redemption
                  provisions of the Newco Preferred Shares;

         (z)      "PLAN OF ARRANGEMENT"  means this Plan of Arrangement,  as the
                  same may be amended from time to time in writing signed by the
                  parties;

         (aa)     "RECORD  DATE"  means the close of business on that day which
                  is four  Business  Days prior to the  Effective  Date for the
                  purpose of determining the Abstract  Shareholders entitled to
                  receive share certificates representing AMI Common Shares and
                  Newco Common Shares under the Arrangement;

         (bb)     "REGISTRAR" means the Registrar of Companies under the BCCA;
                  and

         (cc)     "TRANSFER AGENT" means Montreal Trust Company at its principal
                  office in Vancouver, British Columbia.

1.2               INTERPRETATION  NOT  AFFECTED  BY  HEADINGS:  The  division of
                  -------------------------------------------
this Plan of Arrangement into articles,  sections,  subsections,  paragraphs and
subparagraphs  and the  insertion of headings are for  convenience  of reference
only and shall not affect the  construction  or  interpretation  of this Plan of
Arrangement.  Unless otherwise specifically  indicated,  the terms "this Plan of
Arrangement",  "hereof",  "hereunder" and similar expressions refer to this Plan
of  Arrangement  as  a  whole  and  not  to  any  particular  article,  section,
subsection,  paragraph or  subparagraph  and include any agreement or instrument
supplementary or ancillary hereto.

1.3               NUMBER AND GENDER:  Unless the context otherwise  requires,
words  importing  the  singular  number  only shall  include the plural and vice
versa,  words  importing the use of either gender shall include both genders and
neuter and words importing persons shall include firms and corporations.

1.4               MEANING:  Words and phrases  used herein and defined in the
                  -------
BCCA  shall have the same  meaning  herein as in the BCCA,  unless  the  context
otherwise requires.

<PAGE>

                                      -15-

                                    ARTICLE 2
                              ARRANGEMENT AGREEMENT

2.1               ARRANGEMENT  AGREEMENT:  This Plan of Arrangement  is made
                  ----------------------
pursuant and subject to the provisions of the  Arrangement Agreement.

                                    ARTICLE 3
                                 THE ARRANGEMENT

3.1               THE  ARRANGEMENT:  On the Effective  Date, the following shall
                  ----------------
occur and be deemed to occur in the following order,  without any further act or
formality,  and with each transaction or event being deemed to occur immediately
after the occurrence of the  transaction or event next preceding it, but subject
to the provisions of Article 4:

                  Effective as of the Effective Time:

                  REORGANIZATION OF ABSTRACT AND SHARE EXCHANGE WITH NEWCO:

         (a)      The Memorandum and Articles of Abstract will be amended as set
                  out in Appendix I, so as to include the share  provisions  set
                  forth in Section 3 thereof, and the Memorandum and Articles of
                  Newco  will be  created  as set out in  Appendix  II, so as to
                  create the share provisions set forth in Section 3 thereof;

         (b)      Each  Exchangeable  Share issued and outstanding at the Effec-
                  tive Time  (including any treasury shares held by the Corpora-
                  tion  in itself)  shall be exchanged  for one Abstract  Common
                  Share and one Abstract Preferred Share. Each Abstract Share-
                  holder will cease to be the holder of the Exchangeable Shares
                  so converted and shall become the holder of the number of
                  Abstract Common Shares and Abstract Preferred Shares issued to
                  such Abstract  Shareholder.  The name of such Abstract Share-
                  holder (including the Corporation, to the extent that it holds
                  any treasury shares in itself) will be removed from the regis-
                  ter of shareholders of Exchangeable Shares with respect to the
                  Exchangeable  Shares so converted and will be added to the
                  registers of shareholders of Abstract Common Shares and
                  Abstract  Preferred Shares as the holder of the number of
                  Abstract Common Shares and Abstract Preferred Shares, respec-
                  tively,  so issued to such Abstract  Shareholder. The Corpora-
                  tion may elect to have the provisions of subsection  85(1) of
                  the ITA apply to the exchange of any treasury shares which the
                  Corporation  holds in itself immediately prior to the Arrange-
                  ment for Abstract Common Shares and Abstract Preferred Shares.
                  Should any competent  taxing  authority at any time issue or
                  propose to issue any  assessment or  assessments  that impose
                  or would impose any liability for tax on the basis that the
                  fair  market  value of the Exchangeable Shares  is other  than
                  the  amount  approved  by the  Directors  of the Corporation
                  and if the directors of the Corporation or a competent Court
                  or tribunal agree with such  revaluation and all appeal rights
                  have been  exhausted or all times for appeal have  expired
                  without  appeals  having been taken or should the

<PAGE>

                                      -16-

                  Directors of the Corporation otherwise determine that the fair
                  market value of the Exchangeable Shares is other than the
                  amount previously approved by the Directors, then the Abstract
                  Redemption  Amount of the Abstract Preferred  Shares  shall be
                  adjusted NUNC PRO TUNC to reflect the agreed  upon fair market
                  value and all necessary adjustments, payments  and  repayments
                  as may be required shall forthwith be made between  the proper
                  parties. Notwithstanding  the foregoing and in spite of such
                  adjustment, the Abstract Shareholders shall in any event still
                  end up holding,  at the  conclusion of the  reorganization  of
                  the  Corporation  and share  exchange with Newco, one Abstract
                  Common Share and one Newco  Common  Share for each  Abstract
                  Common  Share held  immediately  prior to the Arrangement, and
                  any intercorporate debt shall still be cancelled pursuant to
                  subsection 3.1(h);

         (c)      The  Exchangeable  Shares  which were  exchanged  for Abstract
                  Common and Abstract  Preferred  Shares shall be cancelled  and
                  the  Exchangeable  Shares  shall  be  cancelled  as a class of
                  shares of the Corporation,  with the appropriate entries being
                  made in the register of  shareholders  and with the Memorandum
                  of the  Corporation  being amended to delete the  Exchangeable
                  Share provisions there from;

                  BUTTERFLY  DIVISION OF  BUSINESS/  REORGANIZATION  PURSUANT TO
                  PARAGRAPH 55(3)(B) OF THE ITA:

         (d)      The Abstract Shareholders (including the  Corporation,  to the
                  extent that it holds any treasury shares in itself) shall
                  transfer to Newco their Abstract  Preferred Shares in exchange
                  for the issuance by Newco to the holders of such Abstract
                  Preferred  Shares of one Newco Common Share for each Abstract
                  Preferred Share acquired. The names of such shareholders shall
                  be removed from the register of  shareholders  of Abstract
                  Preferred  Shares with respect to the Abstract  Preferred
                  Shares so exchanged and will be added to the register of
                  shareholders of Newco Common Shares as the holders of the
                  number of Newco Common Shares so issued to such  shareholders.
                  Newco's name shall be added to the register of shareholders of
                  Abstract  Preferred Shares as the holder of the Abstract
                  Preferred Shares so acquired by Newco;

          (e)     Abstract shall transfer the Abstract  Non-Internet Assets to
                  Newco in consideration of which (i) Newco shall issue to
                  Abstract such number of Newco  Preferred Shares as  determined
                  by its directors  based on the value of the Abstract Non-
                  Internet  Assets;  (ii) Newco shall assume  responsibility for
                  all of Abstract's  existing debts and obligations with respect
                  to the Abstract  Non-Internet  Assets;  and (iii) Newco shall
                  jointly  elect with Abstract to have the provisions of subsec-
                  tion  85(1) of the ITA apply to such transfer. Abstract's name
                  shall be added to the register of shareholders of Newco Pre-
                  ferred  Shares as the holder of the Newco Preferred Shares so
                  issued to Abstract and, to the extent that any Abstract Common
                  Shares or Newco Common Shares held by the  Corporation  as a
                  result of the steps set out at subsections 3.1(b) and (d) form
                  part of the Abstract  Non-Internet  Assets,  Abstract's name
                  shall be deleted from and Newco's name shall be added to the
                  registers of  shareholders  of Abstract  Common

<PAGE>

                                      -17-

                  Shares and Newco Common Shares as the holder of the number of
                  Abstract  Common Shares and Newco Common Shares, respectively,
                  so transferred to Newco;

         (f)      Newco  shall  redeem all of the issued and  outstanding  Newco
                  Preferred Shares for an aggregate  redemption  amount equal to
                  the  aggregate  of the Newco  Redemption  Amounts for all such
                  Newco Preferred  Shares,  and shall effect the payment of such
                  aggregate  redemption  amount  by  issuing  to  Newco a demand
                  promissory note (the "Newco  Redemption  Note") in a principal
                  amount equal to such aggregate  redemption  amount and bearing
                  interest  at a rate equal to the  Canadian  dollar  commercial
                  loan  prime  rate of the  Bank of  Montreal  from  the date of
                  demand  to the date of  payment,  whereupon  all of the  Newco
                  Preferred Shares will be cancelled, with the appropriate entry
                  being made in Newco register of shareholders;

         (g)      Abstract  shall  redeem  all of  the  issued  and  outstanding
                  Abstract  Preferred Shares for an aggregate  redemption amount
                  equal to the aggregate of the Abstract  Redemption Amounts for
                  all such  Abstract  Preferred  Shares,  and shall  effect  the
                  payment  of such  aggregate  redemption  amount by  issuing to
                  Newco a  demand  promissory  note  (the  "Abstract  Redemption
                  Note")  in  a  principal   amount  equal  to  such   aggregate
                  redemption  amount and bearing interest at a rate equal to the
                  Canadian  dollar  commercial  loan  prime  rate of the Bank of
                  Montreal  from the  date of  demand  to the  date of  payment,
                  whereupon  all  of  the  Abstract  Preferred  Shares  will  be
                  cancelled, with the appropriate entry being made in Abstract's
                  register of shareholders;

                  SATISFACTION OF NOTES:

         (h)      Abstract  shall pay out and  satisfy the  Abstract  Redemption
                  Note by  transferring  the  Newco  Redemption  Note to  Newco,
                  whereupon  both the  Abstract  Redemption  Note and the  Newco
                  Redemption Note shall be cancelled.

                  MERGER WITH AMI:

         (i)      AMI shall purchase from each Abstract Shareholder all Abstract
                  Common   Shares   held  by  such   Abstract   Shareholder   in
                  consideration   of  the  issuance  by  AMI  to  each  Abstract
                  Shareholder  of one (1) AMI  Common  Share  for each  four (4)
                  Abstract Common Shares held by such shareholder.  The names of
                  such Abstract  Shareholders shall be removed from the register
                  of  shareholders  of Abstract Common Shares so transferred and
                  will be added to the  register of  shareholders  of AMI Common
                  Shares as the  holders of the  number of AMI Common  Shares so
                  issued to such shareholders.

3.2               DEEMED FULLY PAID AND  NON-ASSESSABLE  SHARES:  All Abstract
                  ---------------------------------------------
Common  Shares,  Abstract  Preferred  Shares and Newco  Common  Shares and Newco
Preferred  Shares shall be deemed to be validly issued and  outstanding as fully
paid and non-assessable shares for all purposes of the COMPANY ACT.

<PAGE>

                                      -18-

3.3               ARRANGEMENT  EFFECTIVENESS:   The  Arrangement  shall  become
                  --------------------------
finally and  conclusively  binding on the Abstract  Shareholders and each of the
corporations referred to in section 3.1 upon the Effective Date.

3.4               SUPPLEMENTARY ACTIONS:  Notwithstanding that the transactions
                  ---------------------
and events set out in  section  3.1 shall  occur and shall be deemed to occur in
the  chronological  order therein set out without any act or formality,  each of
Abstract,  AMI and Newco shall be required to make,  do and execute or cause and
procure to be made, done and executed all such further acts, deeds,  agreements,
transfers,  assurances,  instruments  or  documents  as may be  required to give
effect to, or further  document or evidence,  any of the  transactions or events
set out in section  3.1,  including,  without  limitation,  any  resolutions  of
directors  authorizing  the issue,  transfer or redemption of shares,  any share
transfer powers evidencing the transfer of shares and any receipt therefor,  and
any necessary additions to or deletions from share registers.

                                    ARTICLE 4
                                  CERTIFICATES

4.1              ABSTRACT PREFERRED SHARE CERTIFICATES AND NEWCO PREFERRED SHARE
                 ---------------------------------------------------------------
CERTIFICATES:
------------
Recognizing  that all of the Abstract  Preferred  Shares  issued to the Abstract
Shareholders  will immediately be acquired by Newco in exchange for Newco Common
Shares,  Abstract will not issue Abstract  Preferred  Share  certificates to the
Abstract  Shareholders,  but  will  issue to  Newco a  certificate  for all such
Abstract Preferred Shares upon Newco's acquisition thereof.  Notwithstanding the
foregoing,  the parties  acknowledge that the issuance of share  certificates in
this  manner  is  being  done  for  administrative  convenience  only and is not
intended  to and  does  not  detract  from  the  beneficial  ownership  that the
Shareholders  will have in the Abstract  Preferred Shares pursuant to subsection
3.1(b) of this Plan of Arrangement.  In addition, Newco will issue to Abstract a
certificate for the Newco Preferred shares referred to in subsection 3.1(e) upon
Abstract's acquisition thereof.

4.2.1             NEWCO COMMON SHARE CERTIFICATES:  From and after the Effective
                  -------------------------------
Time share  certificates  representing  Abstract  Common Shares held by Abstract
Shareholders  not deemed to have been  cancelled  pursuant to subsection  3.1(a)
shall for all  purposes be deemed to be share  certificates  representing  Newco
Common Shares, and as soon as practicable following the Effective Date new share
certificates  shall be issued  holders of Newco  Common  Shares with  respect to
Newco Common Shares issued in connection with the Arrangement.

4.3               AMI  COMMON  SHARE  CERTIFICATES:  As  soon as  practicable
                  --------------------------------
following the Effective Date,  certificates  representing  the AMI Common Shares
issuable in connection  with the  Arrangement  will be delivered to the Abstract
Shareholders.

                                    ARTICLE 5
                                 REFERENCE DATE

<PAGE>

                                      -19-

5.1               REFERENCE DATE:  This plan of arrangement is dated for refe-
                  --------------
rence April 21, 2000.

<PAGE>

                                      -20-

                                   APPENDIX I
                                     TO THE
                               PLAN OF ARRANGEMENT

                               ALTERED MEMORANDUM
                               ------------------

                        (As  altered  by a Plan  of  Arrangement under  section
                  252 of the COMPANY ACT  approved by Special Resolution passed
                  on July 14, 2000)

                                     FORM 1
                                   (Section 5)

                                   COMPANY ACT

                                   MEMORANDUM
                                       OF
                           ABSTRACT ENTERPRISES CORP.

1.                The name of the Company is "Abstract Enterprises Corp."

2.                The authorized capital of the Company consists of 250,000,000
shares divided into:

         (a)      50,000,000 Exchangeable Shares without par value;

         (b)      100,000,000 Common shares without par value; and

         (c)      100,000,000 Preferred shares without par value.

3.                The  Exchangeable shares,  the Common Shares and the Preferred
shares shall have the following  special  rights and restrictions:

3.1               DEFINITIONS

In these Special Rights and Restrictions:

         (a)      "ARRANGEMENT"  means the arrangement  pursuant to section 252
                  of the COMPANY ACT (British Columbia) as contemplated by the
                  Arrangement  Agreement dated April 21, 2000 among the Company,
                  Auteo Media Inc. and Abstract Oil & Gas Inc.;

         (b)      "COMMON  SHARE" or "COMMON  SHARES"  means one or more issued
                  Common shares in the capital of the Company without par value;

<PAGE>

                                      -21-

         (c)      "EXCHANGEABLE  SHARE"  means one or more  issued  Exchangeable
                  Common  Share in the capital of the Company without par value;
                  and

         (d)      "PREFERRED  SHARE" or  "PREFERRED  SHARES" means one or more
                  issued  Preferred  shares  in the  capital  of  the  Company
                  without par value.

3.2               VOTING RIGHTS

The holders of the Common shares and the Exchangeable Common shares are entitled
to  receive  notice  of and to attend  and vote at any  general  meeting  of the
shareholders  of the  Company.  The  holders  of the  Preferred  shares  are not
entitled  to  receive  notice  of nor  to  attend  any  general  meeting  of the
shareholders of the Company and, if in attendance,  will not be entitled to vote
at such meeting. A holder of Preferred shares will only be entitled to notice of
and to attend and vote at meetings of the holders of Preferred shares.

3.3               DIVIDENDS

The  Common  shares,   the  Preferred   shares  and  the   Exchangeable   shares
(collectively,  the "shares") have the following special rights and restrictions
attached to them with respect to dividends:

         (a)      subject to paragraphs 3.3(b),  (c), (d) and (e), the Directors
                  may, in their  discretion,  declare and pay  dividends  on the
                  Common shares and the Exchangeable shares but no dividends may
                  be declared or paid on the Preferred shares;

         (b)      if the  Directors  declare  or  pay  dividends  on the  Common
                  shares,  then  the  Directors  must,  at the same  time,  also
                  declare  or  pay,  as  the  case  may  be,  dividends  on  the
                  Exchangeable shares;

         (c)      if the Directors  declare or pay dividends on the Exchangeable
                  shares,  then  the  Directors  must,  at the same  time,  also
                  declare or pay,  as the case may be,  dividends  on the Common
                  shares;

         (d)      the  holders  of Common  shares  are  entitled  to  payment of
                  dividends, as and when declared, in the same proportion of the
                  total  amount  of  dividends  as the  ratio of the  number  of
                  outstanding   Common  shares  to  the   aggregate   number  of
                  outstanding Common shares and Exchangeable shares; and

         (e)      the holders of Exchangeable  shares are entitled to payment of
                  dividends, as and when declared, in the same proportion of the
                  total  amount  of  dividends  as the  ratio of the  number  of
                  outstanding  Exchangeable  shares to the  aggregate  number of
                  outstanding Common shares and Exchangeable shares; and

<PAGE>

                                      -22-

3.4               CONVERSION OF EXCHANGEABLE  SHARES

Pursuant to the Arrangement,  each Exchangeable  share held will be exchangeable
by each holder for one Common share and one Preferred share.

3.5               REDEMPTION AMOUNT

The "Redemption  Amount" in respect of each Preferred share shall be such amount
as may be  determined  by the  Directors  at the time  such  Preferred  Share is
issued.

3.6               RIGHTS OF REDEMPTION

         (a)      On the  Effective  Date and subject to the  provisions  of the
                  COMPANY ACT (BRITISH  COLUMBIA),  each Preferred share will be
                  redeemed,  without  any  notice  or  other  act  or  formality
                  required by the Company or the  holder,  and the holder  shall
                  cease to be  entitled  to any right in  respect  of such share
                  except to receive the Redemption  Amount,  unless the transfer
                  of the  Redemption  Amount  is not  made  by  the  Company  in
                  accordance  with this  paragraph 3.6, in which case the rights
                  of the holder of such share shall remain unimpaired. Forthwith
                  after the  redemption,  the Company  will take and cause to be
                  taken all necessary steps to transfer the Redemption Amount to
                  the  holder  for  each  Preferred  share   redeemed,   all  in
                  accordance with the Arrangement.

         (b)      For greater certainty,  the Redemption Amount of the preferred
                  share shall be the amount of  consideration  determined by the
                  Directors of the Company and adjusted by the  Directors at any
                  time or times so as to ensure  that the  Redemption  Amount of
                  such Preferred Shares issued as partial or total consideration
                  for  the  purchase  by  the  Company  of  any  assets  or  the
                  conversion or exchange of any shares (the "Purchased  Assets")
                  shall equal the  difference  between the fair market  value of
                  the Purchased Assets as at the date of purchase, conversion or
                  exchange by the Company and the  aggregate  value of non-share
                  consideration,  if any,  issued by the  Company  as partial or
                  total consideration for the Purchased Assets.

         (c)      Such fair market value shall be  determined  by the  Directors
                  of the Company upon such expert advice as they deem necessary.
                  Should,  however,  any competent taxing authority at any time
                  issue or propose to issue any assessment or assessments that
                  impose or would  impose  any  liability  for tax on the basis
                  that the fair  market  value of the Purchased  Assets is other
                  than the amount  approved by the Directors  and if the  Direc-
                  tors or a competent  Court or tribunal agree with such revalu-
                  ation  and all appeal rights have been exhausted or all times
                  for appeal have expired without  appeals  having been taken or
                  should the  Directors of the  Corporation otherwise  determine
                  that the fair market  value of the  Purchased  Assets is other
                  than the  amount  previously approved by the  Directors,  then
                  the Redemption  Amount of the  Preferred  Shares  shall be
                  adjusted  NUNC PRO TUNC  pursuant to the  provisions  of this
                  paragraph to reflect the agreed upon fair market value and all
                  necessary adjustments,  payments and repayments as may be
                  required shall forthwith be made between the proper parties.

<PAGE>

                                      -23-

3.7               LIQUIDATION, DISSOLUTION OR WINDING-UP

In the event of  liquidation,  dissolution or winding-up of the Company or other
return of capital by the Company, whether voluntary or involuntary:

         (a)      the holders of the  Preferred  shares are entitled to receive,
                  before any  distribution of any part of the profits and assets
                  of the  Company  among the  holders of any other  shares,  the
                  Redemption Amount, and no other assets or property;

         (b)      once the prior  distributions have been made to the holders of
                  Preferred shares described in paragraphs  3.7(a),  the holders
                  of the Common shares are entitled to all further distributions
                  of the profits and assets of the Company.

3.8               MODIFICATION OF RIGHTS AND RESTRICTIONS

Preferences,  qualifications,  limitations,  restrictions and rights attached to
shares in any class may be  altered,  amended  or changed  only by a  resolution
passed by a  majority  of not less than  three-quarters  of the then  registered
holders of shares in such class,  together with a Special  resolution  passed by
the Company, and not otherwise.

                                        ----------------------------------------
                                        Michael W. Kinley, President
                                        Abstract Enterprises Corp.

<PAGE>

                                      -24-

                                   APPENDIX II
                                     TO THE
                               PLAN OF ARRANGEMENT

                                   MEMORANDUM
                                   ----------

                       (As  altered  by a Plan  of  Arrangement under  section
                  252 of the COMPANY ACT  approved by Special Resolution passed
                  on April 17, 2000)

                                     FORM 1
                                   (Section 5)

                                   COMPANY ACT

                                   MEMORANDUM
                                       OF
                             ABSTRACT OIL & GAS INC.

1.       The name of the Company is "Abstract Oil & Gas Inc.".

2.       The authorized capital of the Company consists of 200,000,000 shares
divided into:

         (a)      100,000,000 Common shares without par value; and

         (b)      100,000,000 Preferred shares without par value.

3.       The Common shares and the Preferred shares shall have the following
special rights and restrictions:

3.1               DEFINITIONS

In these Special Rights and Restrictions:

         (a)      "ARRANGEMENT"  means the arrangement  pursuant to section 252
                  of the COMPANY ACT (British Columbia) as contemplated by the
                  Arrangement  Agreement dated April 17, 2000 among the Company,
                  Auteo Media Inc. and Abstract Enterprises Corp.;

<PAGE>

                                      -25-

         (b)      "COMMON  SHARE" or "COMMON  SHARES"  means one or more issued
                  Common shares in the capital of the Company without par value;
                  and

         (c)      "PREFERRED  SHARE" or  "PREFERRED  SHARES" means one or more
                  issued  Preferred  shares  in the  capital  of  the  Company
                  without par value.

3.2               VOTING RIGHTS

The holders of the Common shares are entitled to receive notice of and to attend
and vote at any general meeting of the shareholders of the Company.  The holders
of the Preferred  shares are not entitled to receive notice of nor to attend any
general meeting of the  shareholders of the Company and, if in attendance,  will
not be entitled to vote at such meeting.  A holder of Preferred shares will only
be  entitled  to notice of and to attend and vote at  meetings of the holders of
Preferred shares.

3.3               DIVIDENDS

The Directors may, in their discretion,  declare and pay dividends on the Common
shares but no dividends may be declared or paid on the Preferred shares;

3.4               REDEMPTION AMOUNT

The "Redemption  Amount" in respect of each Preferred share shall be such amount
as may be determined by the Directors at the time such Preferred Share is issued

3.5               RIGHTS OF REDEMPTION

         (a)      On the  Effective  Date and subject to the  provisions  of the
                  COMPANY ACT, each  Preferred  share will be redeemed,  without
                  any notice or other act or  formality  required by the Company
                  or the  holder,  and the holder  shall cease to be entitled to
                  any right in  respect  of such  share  except to  receive  the
                  Redemption  Amount,  unless  the  transfer  of the  Redemption
                  Amount  is not made by the  Company  in  accordance  with this
                  paragraph  3.5, in which case the rights of the holder of such
                  share shall remain unimpaired. Forthwith after the redemption,
                  the  Company  will take and  cause to be taken  all  necessary
                  steps to transfer the Redemption Amount to the holder for each
                  Preferred   share   redeemed,   all  in  accordance  with  the
                  Arrangement.

         (b)      For greater certainty,  the Redemption Amount of the preferred
                  share shall be the amount of  consideration  determined by the
                  Directors of the Company and adjusted by the  Directors at any
                  time or times so as to ensure  that the  Redemption  Amount of
                  such Preferred Shares issued as partial or total consideration
                  for  the  purchase  by  the  Company  of  any  assets  or  the
                  conversion or exchange of any shares (the "Purchased  Assets")
                  shall equal the  difference  between the fair market  value of
                  the Purchased Assets as at the date of purchase, conversion or
                  exchange by the Company and the

<PAGE>

                                      -26-

                  aggregate  value of non-share consideration,  if any,  issued
                  by the  Company  as partial or total consideration for the
                  Purchased Assets.

         (c)      Such fair market value shall be  determined  by the  Directors
                  of the Company upon such expert advice as they deem necessary.
                  Should,  however,  any competent taxing authority at any time
                  issue or propose to issue any assessment or assessments that
                  impose or would  impose  any  liability  for tax on the basis
                  that the fair  market  value of the Purchased Assets is other
                  than the amount approved by the Directors and if the Directors
                  or a competent  Court or tribunal agree with such  revaluation
                  and all appeal rights have been exhausted or all times for
                  appeal have expired without appeals having been taken or
                  should the  Directors of the Corporation  otherwise  determine
                  that the fair market  value of the  Purchased  Assets is other
                  than the  amount previously approved  by the  Directors,  then
                  the Redemption  Amount of the  Preferred  Shares  shall be
                  adjusted  NUNC PRO TUNC  pursuant to the  provisions  of this
                  paragraph to reflect the agreed upon fair market value and all
                  necessary adjustments,  payments and repayments as may be
                  required shall forthwith be made between the proper parties.

3.6               LIQUIDATION, DISSOLUTION OR WINDING-UP

In the event of  liquidation,  dissolution or winding-up of the Company or other
return of capital by the Company, whether voluntary or involuntary:

         (a)      the holders of the  Preferred  shares are entitled to receive,
                  before any  distribution of any part of the profits and assets
                  of the  Company  among the  holders of any other  shares,  the
                  Redemption Amount, and no other assets or property;

         (b)      once the prior  distributions have been made to the holders of
                  Preferred shares described in paragraphs  3.6(a),  the holders
                  of the Common shares are entitled to all further distributions
                  of the profits and assets of the Company.

3.7               MODIFICATION OF RIGHTS AND RESTRICTIONS

Preferences,  qualifications,  limitations,  restrictions and rights attached to
shares in any class may be  altered,  amended  or changed  only by a  resolution
passed by a  majority  of not less than  three-quarters  of the then  registered
holders of shares in such class,  together with a Special  resolution  passed by
the Company, and not otherwise.

                                     -------------------------------------------
                                     Michael W. Kinley, President
                                     Abstract Oil & Gas Inc.

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