Exhibit 10.6(e)

                              EMPLOYMENT AGREEMENT

     This  Agreement,  dated  April 16,  1996,  is entered  into by and  between
Applied Graphics  Technologies,  Inc., a Delaware corporation ("AGT"), and Louis
Salamone,  Jr.,  (hereinafter  referred to as "Salamone" or the  "Employee")  an
individual  residing  at 221 Woods End,  Basking  Ridge,  New Jersey  07920.  In
consideration  of the mutual  covenants set forth  herein,  the parties agree as
follows:

     1.  Employment  Term.  Subject to the further terms and  conditions of this
Agreement,  AGT employs  Employee as Senior Vice  President and Chief  Financial
Officer for the period beginning on the Commencement  Date and ending on the day
before the second  anniversary of the Commencement  Date (the "Term");  provided
that no later  than six  months  before the  expiration  of the Term,  AGT shall
notify  Employee as to whether AGT intends to extend  Employee's  employment for
one additional year beyond the Term. The  Commencement  Date shall be a mutually
agreed  upon  date  between  May  1,  1996  and  June  1,  1996.  

     2. Employee will  generally  attend  meetings of the Board of the Directors
and will attend meetings of Board Committees, as appropriate.

     3. Compensation.

     (a)       AGT will pay Employee a salary at the rate of $240,000 per annum.

     (b)       With respect to each of AGT's  fiscal  years,  Employee  shall be
               eligible for a cash bonus in an amount,  if any, to be determined
               in the sole discretion of AGT.

     (c)       The salary and bonus referred to in subparagraphs (a) - (b) above
               represent all of Employee's cash  compensation,  and accordingly,
               Employee  shall  not be  entitled  to any  overtime,  weekend  or
               holiday compensation.

     (d)       Employee  shall receive  those  insurance,  retirement  and other
               benefits  generally  provided to AGT's other senior executives of
               similar rank and tenure.

     (e)       Employee  shall  be  reimbursed  for all  reasonable  travel  and
               entertainment  expenses  incurred  in the  furtherance  of  AGT's
               business,    upon    submission   by   Employee   of   reasonable
               documentation.

     4. Duties.  During the term of this  Agreement,  Employee agrees to fulfill
the duties of Chief Financial Officer of AGT. Employee shall report to the Chief
Operating  Officer of AGT, and shall  devote all of his business  efforts to the
performance  of his duties as Chief  Financial  Officer,  and shall do so to the
best of his abilities.

     5. Leaves.  Employee  shall be entitled to a four (4) week vacation  during
each  year of the  Term,  and such  other  leaves,  if any,  as may be  provided
generally to AGT's other senior executives.

     6. Termination.

     (a)       This Agreement shall terminate prior to the expiration  hereof in
               the event of Employee's death, permanent disability, or discharge
               for cause.  "Cause" shall mean (i) the  conviction of or pleas of
               guilty  or  nolo-contender  to  any  felony  or  business-related
               misdemeanor;  (ii) the reasonable determination by AGT's Board of
               Directors or Chief Executive Officer that Employee has engaged in
               an act of personal dishonesty in any way relating to or affecting
               the performance of his duties for AGT, its parents,  subsidiaries
               or  affiliates;  (iii) a  breach  of  fiduciary  duty;  (iv)  the
               intentional   failure  to  perform  assigned  duties;  (v)  gross
               negligence in the  performance of duties;  (vi) a material breach
               of any  of  the  provisions  of  this  Agreement;  or  (vii)  the
               commission  of any other action with the intent to harm or injure
               AGT, its parents,  subsidiaries or affiliates.  In the event that
               AGT terminates Employee for cause,  Employee shall be entitled to
               compensation  earned up to the date of termination,  but no other
               compensation,  and AGT  reserves  the  right to seek  appropriate
               relief for whatever  damage may have  resulted from that "cause".
               "Permanent  disability"  shall mean a physical or mental illness,
               disability or disfigurement  which renders Employee  incapable of
               performing his normal services  hereunder for a continuous period
               of 8  weeks,  or an  aggregate  of 16  weeks  during  any 52 week
               period. In the event Employee is disabled for less than such 8 or
               16 weeks, respectively, Employee shall nonetheless be entitled to
               full compensation  during such period. In the event of Employee's
               permanent disability or death, Employee shall be entitled to full
               compensation until the effective date of his termination,  but no
               other compensation.



     (b)       AGT shall be entitled to  terminate  this  Agreement  at any time
               without any reason or cause whatsoever. However, in the event AGT
               exercises its rights under this Paragraph  6(b), (i) any unvested
               stock  options   which  have  been  granted  to  Employee   shall
               immediately  vest and be subject to  exercise  within 90 days and
               (ii) AGT shall  continue to pay  Employee's  salary and  benefits
               under  Paragraph  3(a) for the remainder of the term set forth in
               Paragraph 1;  provided  however that  Employee  shall make a good
               faith effort to find other  employment  and any amounts due under
               this  clause (ii) shall be offset by any  compensation  earned or
               received by Employee  from other persons or entities with respect
               to any  services  performed  by him during the  remainder of said
               term.

     (c)       Amounts  payable to Employee  pursuant to this Section 6 shall be
               paid in accordance with AGT's usual payroll practices.

     7.  Noncompetition,  Nonsolicitation  and  Confidentiality.  As a  material
inducement to AGT to employ him, Employee agrees to execute the  Noncompetition,
Nonsolicitation and Confidentiality  Agreement attached hereto as Exhibit A, the
terms of which are incorporated herein by reference.

     8. Absence of Restrictions. Employee represents and warrants that he is not
a party to any agreement or contract  pursuant to which there is any restriction
or  limitation  upon him entering into this  Agreement or performing  the duties
called for by this Agreement.

     9. In  consideration  of  Employee's  agreement to begin  employment on the
Commencement Date,  Salamone shall be granted options to purchase 125,000 shares
of AGT's  common  stock at the price at which such shares are sold to the public
pursuant to AGT's Registration Statement dated January 19, 1996.

     (a)       Such options shall vest at the rate of 20% per year, such vesting
               to occur at the end of each 365 day period after the grant of the
               options.

     (b)       The options will be subject to such other terms and conditions as
               are  established  by the  Compensation  Committee of the Board of
               Directors.

     10. Notices.  All notices,  consents and other  communications  required or
permitted to be given hereunder shall be in writing and delivered  personally or
sent by certified or registered mail, postage prepaid, as follows:

     (a)       if to Employee,  to: Louis Salamone,  Jr., 221 Woods End, Basking
               Ridge, New Jersey 07920.

     (b)       if to AGT, to: Fred Drasner,  450 West 33rd Street,  New York, NY
               10001, with a copy to Martin D. Krall at the same address.



     Any notice so given shall be deemed received when delivered personally, or,
if mailed, three days after it is deposited, postage prepaid, by certified mail,
in the United States mail.  Either party may change the address to which notices
are to be sent by giving  written  notice of such change of address to the other
party in the manner herein provided for giving notice.

     10. General.

     (a)       This Agreement shall be governed by and construed and enforced in
               accordance  with the laws of the State of New York  applicable to
               agreements made and to be performed entirely in New York.

     (b)       The section headings  contained herein are for reference purposes
               only  and  shall  not  in  any  way   affect   the   meaning   or
               interpretation of this Agreement.

     (c)       This Agreement sets forth the entire agreement and  understanding
               of the parties hereto  concerning the subject matter hereof,  and
               supersedes all prior agreements,  arrangements and understandings
               between the parties hereto.

     (d)       AGT may assign its rights and obligations under this Agreement to
               any  successor  thereto  or to any  corporation  or other  entity
               controlled,  or  under  common  control  with  AGT  or any of its
               Partners.  This  Agreement is personal to  Employee,  and neither
               this  Agreement  or  any  of  Employee's  rights  or  obligations
               hereunder may be assigned,  pledged or encumbered by him, without
               the prior written approval of AGT.

     (e)       This Agreement may be amended, modified,  superseded or canceled,
               and the  terms  or  covenants  hereof  may be  waived,  only by a
               written  instrument  executed by both parties hereto,  or, in the
               case of a waiver, by the party waiving compliance. The failure of
               either party at any time or times to require  performance  of any
               provision  hereof shall in no manner  affect the right at a later
               time to enforce the same. No waiver by either party of the breach
               of any term or covenant  contained in this Agreement,  whether by
               conduct  or  otherwise,  in any one or more  instances,  shall be
               deemed to be, or construed as, a further or continuing  waiver of
               any such  breach or a waiver of the  breach of any other  term or
               covenant in this Agreement.

     (f)       In the  event  that  any one or more  of the  provisions  of this
               Agreement shall be determined to be invalid or  unenforceable  in
               any respect,  the validity and  enforceability  of the  remaining
               provisions of this Agreement  shall not in any way be affected or
               impaired thereby.

     (g)       Except as  otherwise  provided in Exhibit A, any and all disputes
               between  the parties  hereto  concerning  any  alleged  breach or
               interpretation  of this  contract  or arising  out of  Employee's
               employment  shall be submitted  solely to binding  arbitration in
               accordance   with  the  procedures  and  rules  of  the  American
               Arbitration Association applicable at the time of the dispute for
               a final,  non-appealable,  binding  decision.  The parties hereby
               waive any and all right to proceed in any court or administrative
               agency; however, should any dispute hereunder be adjudicated by a
               court, the parties hereto waive any right each may have to a jury
               trial. In a proceeding of any sort, each party shall bear its own
               costs  and  attorneys'  fees,  unless  an  intentional  breach is
               claimed,  and  in  such  event,  if the  moving  party  does  not
               substantially  prevail,  such party  shall pay the other  party's
               legal fees, and if such party does prevail, the other party shall
               pay the prevailing party's fees.

IN WITNESS  WHEREOF,  the parties have  executed  this  Agreement as of the date
shown above. Applied Graphics Technologies, Inc.


                         By: __________________________




                             ---------------------------
                             Louis Salamone, Jr.