ESCROW AGREEMENT
                         (Performance Escrow Agreement)

THIS AGREEMENT made effective this 7th day of May, 1997.

                             KRAFT INVESTMENTS CORP.
                             (herein called "KIC')

                                                               OF THE FIRST PART

                             - and -

                             MONTREAL TRUST COMPANY OF CANADA
                             (herein called the "Trustee")

                                                              OF THE SECOND PART

                             - and -

                             MICHAEL P. KRAFT & ASSOCIATES INC.
                             (herein called "Kraft Inc.")

                                                               OF THE THIRD PART

     WHEREAS Alpha Ventures Inc.  ("Ventures") has made an offer to purchase all
of the shares of Alpha  Corporation  ("AC")  dated April 9, 1997 (the  "Offer"),
which Offer was duly accepted by all of the shareholders of AC;

     AND WHEREAS KIC is a shareholder of Ventures;

     AND WHEREAS  1,315,132  common  shares of  Ventures  owned by KIC (the "KIC
Shares") are subject to a performance  based Form C Escrow Agreement dated as of
the date hereof between Ventures,  the Trustee and certain other shareholders of
Ventures (the "Escrow Agreement");

     AND WHEREAS Kraft Inc. owns all of the issued and outstanding securities of
KIC;

     AND WHEREAS to comply with the  requirements of The Alberta Stock Exchange,
Kraft Inc. is  desirous of  depositing  in escrow all of the  securities  in KIC
owned  by it  (the  "Escrowed  Shares")  which  escrow  shall  be  based  on the
performance of Ventures;

     AND  WHEREAS the  Trustee  has agreed to  undertake  and perform its duties
according to the terms and conditions hereof;



     NOW THEREFORE this agreement witnesses that, in consideration of the sum of
one dollar ($1.00) paid by the parties to each other,  receipt of this sum being
acknowledged  by each of the parties to each  other,  Kraft Inc.  covenants  and
agrees with KIC and with the Trustee, and KIC and the Trustee covenant and agree
each with the other and with Kraft Inc. jointly and severally as follows:

1    Where used in this  agreement,  or in any amendment of  supplement  hereto,
     unless the context  otherwise  requires,  the  following  words and phrases
     shall have the following ascribed to them below:

     (a)  "Cash Flow" means net income derived from the business of Ventures, as
          shown on the audited  financial  statements  or verified by  Ventures'
          auditors, adjusted for the following add backs:

             (1)    depreciation,
             (2)    depletion,
             (3)    deferred taxes,
             (4)    amortization of goodwill,
             (5)    amortization of research and development costs.

     (b)  "Related Party" means promoters,  officers,  directors, other insiders
          of Ventures and any associates or affiliates of the foregoing.

2    Kraft Inc.  hereby  places and  deposits  in escrow  with the  Trustee  the
     Escrowed  Shares which are  represented  by the  certificates  described in
     Schedule  "A"  and  the  Trustee  hereby  acknowledges   receipt  of  those
     certificates.   Kraft  Inc.   agrees  to  deposit  in  escrow  any  further
     certificates representing securities in KIC which it may receive as a stock
     dividend  on  securities  hereby  escrowed,  and to deliver to the  Trustee
     immediately  on  receipt  thereof  the  certificates  for any such  further
     securities and any replacement certificates which may at any time be issued
     for any escrowed securities.

3.   The Parties  hereby agree that,  subject to the  provisions  of paragraph 6
     herein, the Escrowed Shares and the beneficial ownership of or any interest
     in them and the  certificate  representing  them (including any replacement
     securities  or  certificates)  shall not be sold,  assigned,  hypothecated,
     alienated, released from escrow, transferred within escrow, or otherwise in
     any manner  dealt with,  without the written  consent of The Alberta  Stock
     Exchange  (hereinafter  referred to as the "Exchange") given to the Trustee
     or except as may be  required  by  reason  of the  death or  bankruptcy  of
     Michael P. Kraft or the  bankruptcy  of either  Kraft Inc. or KIC, in which
     case  the  Trustee  shall  hold  the  said  certificates  subject  to  this
     agreement,  for whatever  person,  or company shall be legally  entitled to
     become the registered owner thereof.

4.   Kraft  Inc.  directs  the  Trustee to retain  the  Escrowed  Shares and the
     certificates   (including  any  replacement   securities  or  certificates)
     representing  them and not to do or cause  anything  to be done to  release
     them from escrow or to allow any transfer, hypothecation or alienation


relevant,  determine  the number of  securities  to be cancelled or released and
shall  communicate  its  decision  in writing to the  Trustee.  If the  Exchange
determines  that less  than all the  securities  then  held in  escrow  shall be
cancelled or released shall be taken rateably from the escrowed security holding
of Kraft Inc.,  unless the  Exchange  otherwise  directs  Kraft  Inc.,  with the
consent of the Exchange, otherwise agree in writing.

(d)  On receipt by the Trustee of a  determination  to cancel,  Kraft Inc. shall
     tender the required number of escrowed securities to KIC by way of gift for
     cancellation  and, KIC shall thereupon take the necessary action, by way of
     reduction of capital or otherwise, to cancel them, and the certificates for
     these securities shall be delivered up for cancellation.

(e)  Kraft  Inc.  undertakes  and  agrees  to vote and  cause  to be  voted  its
     securities in a manner consistent with the terms,  conditions and intent of
     this agreement in relation to the aforesaid  giffing back of securities for
     cancellation.

11.  Notwithstanding  paragraphs 6 and 10, any shares remaining in escrow on the
     fifth anniversary of the date of this agreement,  unless otherwise exempted
     in writing by the  Exchange,  shall be  cancelled  by the Trustee  within 6
     months of the said fifth anniversary.

12   All voting rights attached to the escrowed securities shall at all times be
     exercised by Kraft Inc.

13.  Kraft Inc.  and KIC hereby  jointly  and  severally  agree to and do hereby
     release and  indemnify  and save  harmless the Trustee from and against all
     claims, suits, demands, costs, damages and expenses which may be occasioned
     by reason of the Trustee's compliance in good faith with the terms hereof.

14.  KIC hereby  acknowledges  the terms and  conditions  of this  Agreement and
     agrees to take all reasonable  steps to facilitate its  performance  and to
     pay the  Trustee's  proper  charges  for its  services  as  trustee of this
     escrow.

15   If the  Trustee  should  wish to  resign,  it shall give at least 6 months'
     notice to KIC which  may,  with the  written  consent of the  Exchange,  by
     writing appoint another Trustee in its place and such appointment  shall be
     binding on Kraft Inc., and the new Trustee shall assume and be bound by the
     obligations of the Trustee hereunder.

16.  The  convenants of Kraft Inc. with KIC in this  agreement are made with KIC
     both in its own right and as trustee for the  holders  from time to time of
     free securities in KIC, and may be enforced not only by KIC but also by any
     holder of free securities.

17.  This  agreement  may be executed in several  parts of the same form and the
     parts as so executed shall together constitute one original agreement,  and
     the parts, if more than one,



     shall be read together and construed as if all the signing  parties  hereto
     had executed one copy of this agreement.

18.  Wherever the singular or masculine is used,  the same shall be construed to
     include the plural or feminine or neuter where the context so requires.

19.  This agreement  shall enure to the benefit of and be binding on the parties
     to this  agreement  and each of  their  heirs,  executors,  administrators,
     successors and assigns.




IN WITNESS WHEREOF KIC, Kraft Inc. and the Trustee have caused their  respective
corporate seals to be hereto affixed.


                                      KRAFT INVESTMENTS CORP.

                                      per:


                                      MONTREAL TRUST COMPANY OF CANADA

                                      per:

                                      per:


                                      MICHAEL P. KRAFT & ASSOCIATES INC.

                                      per:

                                      per:




                                  SCHEDULE "A"


Name of Security Holder and                                  Number of Securities      Certificate Numbers of
address                              Type of Securities      Escrowed                  Escrowed Securities
                                                                              

Michael P. Kraft & Associates          Common Shares             1,315,132                     #7
Inc.