EXHIBIT 10.3
                              EMPLOYMENT AGREEMENT


         This Employment Agreement ("Agreement"), dated February 28, 2001, is
entered into by and between Edward S. Adams, a Minnesota resident (the
"Executive") and Realco, Inc., a New Mexico corporation (the "Company").

                                 R E C I T A L S

         A. This Agreement is being executed and delivered contemporaneously
with that certain Agreement and Plan of Merger, dated February 28, 2001 (the
"Merger Agreement") among the Company, Equity Securities Investments, Inc.
("Equity") and ESI Acquisition Sub, Inc., a wholly owned subsidiary of the
Company ("Acquisition Sub"). Pursuant to the Merger Agreement, Acquisition Sub
will be merged into Equity, and Equity shall be the surviving corporation (the
"Merger"). As of the Effective Time (as defined in the Merger Agreement) of the
Merger, Equity shall be a wholly-owned subsidiary of the Company.

         B. The Company wishes to procure the services of the Executive for the
Company following the Merger, and the Executive is willing to provide his
services to the Company on the terms and conditions hereinafter set forth.

         C. The Company further wishes to restrict the Executive's business
activities and protect the confidential information and trade secrets of the
Company and its affiliated entities during the term of and upon expiration of
this Agreement.

         NOW THEREFORE, in consideration of the premises recited above and the
mutual promises and agreements herein, the parties to this Agreement hereby
agree as follows:

         1. Employment.

                  1.01. Employment; Title. The Company hereby employs the
Executive as an executive officer, with an initial title of Executive Vice
President, and the Executive hereby accepts such employment on the terms and
conditions set forth in this Agreement. The Executive shall have such authority
and responsibility, and shall serve in such capacities consistent with that
status, as may from time to time be assigned to him by the Board of Directors of
the Company. The Executive shall render such other services and perform such
other duties as may be requested of him from time to time by the Board.

                  1.02. Performance of Duties. The Executive shall serve the
Company and its subsidiaries faithfully and to the best of his ability, and
devote such time as may reasonably be required to the business and affairs of
the Company and its subsidiaries during normal business hours (and outside
normal business hours as reasonably required) during the term of this Agreement.

                  1.03. No Other Agreements. The Executive hereby confirms that
he is under no contractual commitments inconsistent with his obligations set
forth in this Agreement.



<PAGE>

         2. Term.

                  2.01. Term. The term of this Agreement shall begin on the
Closing Date (as such term is defined in the Merger Agreement) and expire on the
date that is three (3) years after the Closing Date, unless terminated earlier
in accordance with Section 5.01 hereof or extended as provided in Section 2.02
(the "Term"). Except as otherwise specified herein, all rights, duties and
obligations of the Executive, including without limitation the compensation and
benefits provided in Section 4 of this Agreement, shall commence as of the
Closing Date. In the event the Merger Agreement is terminated and the Merger is
not consummated, this Agreement shall not become effective and shall be deemed
for all purposes null and void.

                  2.02. Extension. On the first anniversary of the Closing Date
and on each subsequent anniversary thereof (each, a "Renewal Date"), the
then-existing Term shall be automatically extended so that it shall expire on
the date that is three (3) years after such Renewal Date, unless on or before
such Renewal Date the Company shall have delivered to the Executive or the
Executive shall have delivered to the Company written notice that the Term will
not be so extended. If such notice is given, the Term will end at the expiration
of the then-existing Term (including any previous extension(s)), and shall not
be further extended except by agreement of the Company and the Executive.

         3. Location. The Executive shall be based in, and shall perform his
duties in, the Minneapolis, Minnesota metropolitan area, or at such other
location as may be mutually agreed upon by the Company and the Executive. The
Executive shall, however, travel to other locations as may be reasonably
required for the performance of his duties under this Agreement.

         4. Compensation and Benefits.

                  4.01. Base Salary. During the Term of this Agreement, the
Company shall pay to the Executive a base salary at the rate of not less than
$150,000 per annum. Such base salary shall be paid in equal installments on the
Company's regular payroll dates during the term of this Agreement. The
Executive's base salary shall be reviewed annually and may be increased (but not
decreased).

                  4.02. Stock Option. Executive shall be eligible to participate
in any stock option plan or similar incentive plan of the Company subject to the
terms and conditions contained therein.

                  4.03. Bonuses and Incentive Compensation. In addition to the
base salary and the stock options described in Sections 4.01 and 4.02, the
Executive shall be eligible to participate in any bonus or performance based
incentive compensation plans which are established by the Board of Directors of
the Company for its executives.

                  4.04. Vacation. The Executive shall be entitled to paid
vacation time of not less than four (4) weeks annually.

                  4.05. 401(k) Plan. The Executive shall be entitled to
participate in any 401(k) plan offered by the Company from time to time to the
extent he is eligible to participate under




                                       2
<PAGE>

the terms of such plan. The Executive's participation in such plan shall be
subject to the provisions, rules and regulations applicable thereto.

                  4.06. Participation in Other Benefit Plans. The Executive
shall be entitled to participate in all employee benefit plans or programs
established by the Company's Board of Directors from time to time to the extent
that his position, title, tenure, salary, age, health and other qualifications
make him eligible to participate. The Executive's participation in any such plan
or program shall be subject to the provisions, rules and regulations applicable
thereto. Without limiting the generality of the foregoing, the Executive shall
be provided with medical, disability, and life insurance coverage to the extent
it is available at a reasonable cost from reputable insurers.

                  4.07. Expenses. The Company shall pay or reimburse the
Executive for all reasonable and necessary out-of-pocket expenses incurred by
him in the performance of his duties under this Agreement, subject to the
presentment of appropriate vouchers in accordance with the Company's normal
policies for expense verification.

         5. Termination.

                  5.01. Termination. The Executive's employment under this
Agreement may be terminated prior to the expiration of the Term set forth in
Section 2 or any extension thereof, as follows, in which case the Company will
be obligated to compensate the Executive as provided in Section 5.02:

                           (a) Termination upon Death. The Executive's
                  employment under this Agreement shall terminate upon his
                  death.

                           (b) Termination upon Disability. The Company may
                  terminate the Executive's employment in the event the
                  Executive is determined to be disabled, as defined in Section
                  5.03.

                           (c) Termination by the Company without Cause. The
                  Company may terminate the Executive's employment under this
                  Agreement for any reason or for no reason upon ninety (90)
                  days' written notice to the Executive.

                           (d) Termination by the Company for Cause. The Company
                  may terminate the Executive's employment under this Agreement
                  for Cause, as defined in Section 5.03, effective immediately
                  upon delivery to the Executive of written notice of such
                  termination; provided, however, that the Executive shall not
                  be terminated for Cause unless and until the Company shall
                  have delivered to the Executive a copy of a resolution duly
                  adopted by the affirmative vote of not less than a majority of
                  the entire membership of the Company's Board of Directors
                  (excluding the Executive, if the Executive is a member of the
                  Board of Directors) at a meeting called and held for such
                  purpose (after reasonable notice to the Executive and an
                  opportunity for the Executive, together with the Executive's
                  counsel, to be heard by said Board), finding that, in the good
                  faith opinion of said Board, the Executive's conduct
                  constitutes Cause for termination and specifying the
                  particulars thereof in detail.



                                       3
<PAGE>

                           (e) Termination by the Executive. The Executive may
                  terminate his employment with the Company hereunder at any
                  time (i) for Good Reason, as defined in Section 5.03,
                  effective immediately upon delivery to the Company of written
                  notice of such termination, or (ii) for any reason or for no
                  reason upon ninety (90) days' written notice to the Company.

                           (f) Termination by Mutual Consent. The parties may
                  terminate the Executive's employment under this Agreement at
                  any time by mutual consent.

                  5.02. Compensation Upon Termination.

                           (a) Death or Disability. In the event this Agreement
                  is terminated by reason of the Executive's death or
                  disability, the Executive shall be entitled to payment of
                  salary earned through the date of termination; payment of any
                  bonus or other incentive compensation for the year in which
                  such death or disability occurs, pro rated for the portion of
                  the year preceding the date of termination; payment for
                  accrued vacations to the date of termination; and
                  reimbursement of expenses incurred through the date of
                  termination. The Executive shall not be entitled to receive
                  any salary, bonus or other payments or benefits under this
                  Agreement with respect to any periods after the date of
                  termination by reason of death or disability.

                           (b) Termination by Company without Cause or by
                  Executive for Good Reason. If the Executive's employment under
                  this Agreement is terminated by the Company without Cause
                  pursuant to Section 5.01(c) or by the Executive for Good
                  Reason pursuant to Section 5.01(e)(i), the Executive shall be
                  entitled to payment of salary earned through the date of
                  termination; payment of any bonus or other incentive
                  compensation for the year in which such termination occurs,
                  pro rated for the portion of the year preceding the date of
                  termination; payment for accrued vacations to the date of
                  termination; and reimbursement of expenses incurred through
                  the date of termination. In addition, the Executive shall be
                  entitled to continue to receive, as a severance benefit,
                  payment of his base salary (at the highest annual rate in
                  effect during the Term of this Agreement) for the remainder of
                  the Term of this Agreement and continuation of medical
                  insurance coverage for the Executive and his family at the
                  Company's expense for the remainder of the Term of this
                  Agreement.

                           (c) Termination by Company for Cause or by Executive
                  without Good Reason. If the Executive's employment under this
                  Agreement is terminated by the Company for Cause pursuant to
                  Section 5.01(d), or by the Executive without Good Reason
                  pursuant to Section 5.01(e)(ii), the Executive shall be
                  entitled to payment of salary earned through the date of
                  termination; payment of any bonus or other incentive
                  compensation for the year in which such termination occurs,
                  pro rated for the portion of the year preceding the date of
                  termination; payment for accrued vacations to the date of
                  termination; and reimbursement of expenses incurred through
                  the date of termination. The Executive shall not be entitled
                  to receive any salary, bonus or other payments or benefits
                  under this Agreement with respect to any periods after the
                  date of termination by the Company for Cause or by the
                  Executive without Good Reason.



                                       4
<PAGE>

                  5.03. Definitions.

                           (a) Disability. The Executive shall be deemed to be
                  "disabled" if the Board of Directors of the Company (excluding
                  the Executive, if the Executive is a member of the Board of
                  Directors) determines in good faith that the Executive is
                  physically or mentally incapacitated and has been unable for
                  ninety (90) days in any 360-day period to perform his duties
                  under this Agreement. In order to assist the Board of
                  Directors in making that determination, the Executive shall,
                  as reasonably requested by the Board, (i) make himself
                  available for medical examinations by a physician chosen by
                  the Board, and (ii) grant the Board and such physician access
                  to all relevant medical information concerning him, arrange to
                  furnish copies of medical records to them and use his best
                  efforts to cause his own physicians to be available to discuss
                  his health with the Board and the physician appointed by the
                  Board. If the Executive disagrees with the findings of the
                  Board-appointed physician, he may appoint his own physician to
                  make the relevant determinations as to disability. In the
                  event that the physician appointed by the Executive disagrees
                  with the findings of the Board-appointed physician, the two
                  physicians shall select a third physician whose determination
                  shall be binding.

                           (b) Cause. "Cause" shall mean:

                                    (i) the willful and continued failure by the
                           Executive to perform substantially the duties and
                           responsibilities of the Executive's position with the
                           Company, which failure is not remedied within thirty
                           (30) days after a written demand for substantial
                           performance, signed by a majority of the Company's
                           Board of Directors, is delivered to the Executive,
                           which demand specifically identifies the manner in
                           which the directors believe that the Executive has
                           not substantially performed his duties or
                           responsibilities (except that (A) any such failure
                           resulting from the Executive's incapacity due to
                           physical or mental illness or death, (B) any such
                           actual or anticipated failure after the issuance of a
                           notice of termination by the Executive for Good
                           Reason, or (C) any such failure resulting from the
                           Company's active or passive obstruction of the
                           performance of the Executive's duties and
                           responsibilities shall not constitute "Cause");

                                    (ii) the conviction of the Executive by a
                           court of competent jurisdiction for felony criminal
                           conduct; or

                                    (iii) the willful engaging by the Executive
                           in fraud or dishonesty which is demonstrably and
                           materially injurious to the Company or its
                           reputation, monetarily or otherwise.

         No act, or failure to act, on the Executive's part shall be deemed
         "willful" unless committed or omitted by the Executive in bad faith and
         without a reasonable belief that his act or failure to act was in the
         best interest of the Company.

                           (c) Good Reason. "Good Reason" shall mean the
                  occurrence, without the Executive's express written consent,
                  any of the following:



                                       5
<PAGE>

                                    (i) the assignment to the Executive of any
                           duties inconsistent with the Executive's status or
                           position with the Company, or a substantial
                           alteration or diminution in the nature or status of
                           the Executive's responsibilities from those performed
                           by the Executive for Equity prior to the Merger;

                                    (ii) a reduction by the Company in the
                           Executive's annual base salary;

                                    (iii) the Company requiring the Executive to
                           be based anywhere other than the Minneapolis,
                           Minnesota metropolitan area except for required
                           travel on the Company's business to the extent
                           reasonably consistent with the Company's strategic
                           business plan, and to the extent required in
                           connection with the Executive's management reporting,
                           planning and training responsibilities to the
                           Company;

                                    (iv) the taking of any action by the Company
                           which would directly or indirectly materially reduce
                           any of the other benefits described in Sections 4.03
                           through 4.06 and which remains uncured after thirty
                           (30) days following the delivery of the Executive's
                           written notice of such breach to the Company; or

                                    (v) any material violation of this Agreement
                           by the Company which remains uncured after thirty
                           (30) days following the delivery of the Executive's
                           written notice of such breach to the Company.

         6. Miscellaneous

                  6.01. Assignment. Neither party may transfer or assign any
rights or delegate any obligations hereunder, in whole or in part, whether
voluntarily or by operation of law, without the prior written consent of the
other party. Any purported transfer, assignment or delegation by either party
without compliance with this Section 6.01 will be null and void and of no force
or effect. This Agreement shall be binding upon and inure to the benefit of the
parties' successors and lawful assigns.

                  6.02. Severability. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or unenforceable or invalid under applicable law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

                  6.03. Withholding. The Company may withhold and deduct from
any benefits payable under this Agreement such amounts as are required under
federal, state and local law to be withheld for income tax, Social Security or
other employment tax withholding purposes.

                  6.04 Complete Agreement. This Agreement and the agreements
referenced herein and therein, contain the complete agreement between the
parties with respect to the subject matter hereof and thereof, and supersede any
prior understandings, agreements or




                                       6
<PAGE>

representations by or between the parties, written or oral, which may have
related to the subject matter hereof or thereof in any way.

                  6.05. Counterparts. This Agreement may be executed in one or
more counterparts, any one of which need not contain the signatures of more than
one party, but all such counterparts taken together, when delivered, will
constitute one and the same instrument.

                  6.06. Governing Law; Choice of Forum. The internal law,
without regard to conflicts of laws principles, of the State of Minnesota will
govern all questions concerning the construction, validity and interpretation of
this Agreement and the performance of the obligations imposed by this Agreement.
Any and every legal proceeding arising out of or in connection with this
Agreement shall be brought in the appropriate courts of the State of Minnesota,
and each of the parties hereto consents to the exclusive jurisdiction of such
courts.

                  6.07. No Waiver. No term or condition of this Agreement shall
be deemed to have been waived, nor shall there by any estoppel to enforce any
provisions of this Agreement, except by a statement in writing signed by the
party against whom enforcement of the waiver or estoppel is sought. Any written
waiver shall not be deemed a continuing waiver unless specifically stated, shall
operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act
other than that specifically waived.



                                  * * * * * * *




                                       7
<PAGE>



         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

                                   EXECUTIVE:


                                          /s/ Edward S. Adams
                                   Edward S. Adams

                                   COMPANY:

                                   REALCO, INC., a New Mexico corporation


                                   By:      /s/ James A. Arias
                                    Its:    President







                                       8