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                                                                 Exhibit 10.6(a)

                              EMPLOYMENT AGREEMENT

      This Agreement, effective as of January 16, 2003, is entered into by and
between Applied Graphics Technologies, Inc., a Delaware corporation ("AGT"), and
Joseph D. Vecchiolla, (hereinafter referred to as the "Employee"), an individual
presently residing at 2707 Royal Lytham Court, St. Charles, Illinois 60174. 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 shall continue to employ Employee for the period beginning on
January 16, 2003 (the "Commencement Date") and ending on January 15, 2005 (the
"Term"). After the Term, Employee shall be an employee "At will" and may be
terminated by AGT at any time with or without cause.

      2. Compensation.

            a. AGT will pay Employee a salary at the rate of Five Hundred and
Sixty Thousand Dollars ($560,000) per annum ("Base Salary"). The Base Salary
will be reviewed annually and may, in the sole discretion of the Board of
Directors, be increased but may not be reduced.

            b. Employee will be eligible to receive a performance bonus with
respect to calendar year 2002 in accordance with the Management Incentive Plan
("MIP") for 2002, as previously approved by the Board of Directors, and for
future periods based upon the MIP approved by the Board with respect to each
subsequent period. In the event Employee's
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employment shall terminate or expire for any reason other than for "Cause"
pursuant to paragraph 5(a) herein, after the end of any period with respect to
which an MIP bonus was based, but before said bonus was paid, Employee shall be
entitled to the full amount of said bonus to which he would otherwise have been
entitled had his employment not terminated or expired, such bonus to be payable
at the time, and in the manner, that MIP bonuses are paid to comparable
employees. In addition, Employee shall be eligible to receive any additional
bonus that may be approved by the Board of Directors in its sole discretion.

            c. The Base Salary and bonuses referred to above represent all of
Employee's cash compensation, and accordingly, Employee shall not be entitled to
any overtime, weekend or holiday compensation. All payments made pursuant to
this Agreement shall be less applicable withholdings and deductions.

            d. Employee shall be eligible to participate in those insurance,
retirement and other benefits generally provided to AGT's other senior
executives of similar rank and tenure from time to time.

            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 appropriate documentation in accordance with AGT's
policies as are in effect from time to
time.

            f. AGT shall provide Employee with an all-inclusive automobile
allowance of $1,000 per month.

      3. Duties. Employee agrees to fulfill the duties of President and Chief
Operating Officer as such duties are defined by AGT's Board of Directors. It is
understood that the Company intends to commence a search for a new Chief
Executive Officer. In light of the foregoing and the requirements of the Company
as determined by the Board of Directors, it is


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understood that the Employee's duties may be modified from time to time in the
future. However, the Employee's duties must, at a minimum, consist of those
customarily performed by the Chief Operating Officer. Employee's reporting
relationship shall be as determined by the Board of Directors in its sole
discretion; provided that, unless and until the Board determines otherwise,
Employee shall report to Fred Drasner in his capacity as Chairman and Chief
Executive Officer. Employee shall devote all of his business efforts to the
performance of his duties hereunder and shall do so to the best of his
abilities. The Employee's principal office, which is currently in New York,
shall be in a location determined by the Board of Directors. Employee will
travel both in the United States and abroad as necessary and appropriate to
fulfill his duties.

      4. Vacation. Employee shall be entitled to four (4) weeks vacation during
each year of the Term, to be taken at such times as shall be agreed between
Employee and the entity or person to whom he reports. Vacation days will accrue
and be paid in accordance with AGT's policies as are in effect from time to
time.

      5. Termination. Subject to the provisions of this Paragraph 5, either AGT
or Employee may terminate this Agreement prior to the expiration of the Term, as
provided for hereinbelow.

      (a)   AGT shall have the right to terminate this Agreement for Cause (as
            hereinafter defined), whereupon the Term shall be at an end.
            Employee shall have the right to terminate this Agreement for Good
            Reason (as hereinafter defined), whereupon the Term shall be at an
            end. If AGT terminates this Agreement for other than


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            Cause or Employee terminates this Agreement for Good Reason, then
            AGT shall pay and/or provide to Employee the following:

            (i)   all accrued but unpaid amounts payable hereunder with respect
                  to the period prior to the date of termination (including,
                  without limitation, base salary, any unpaid bonus which may
                  have been awarded to or earned by Employee, unused vacation
                  pay and reimbursable expenses); and

            (ii)  The sum of (A) all Base Salary which would have become payable
                  to Employee under this Agreement as if this Agreement had not
                  been terminated and Employee remained employed by AGT for a
                  period of 18 months following such termination, (the
                  "Severance Period"), and (B) the aggregate amount by which all
                  then unvested stock options are "in the money" on the date of
                  termination, said amount to be calculated by subtracting from
                  the market value of AGT stock as of the date of termination
                  the applicable exercise prices of the stock options;

            (iii) The amounts referred to in subparagraphs (i) and (ii) above
                  are sometimes hereinafter referred to as the "Severance
                  Payments". The Severance Payments shall be paid in a lump sum
                  (without present value discount) within thirty (30) days after
                  the date of termination, except that any unpaid MIP bonus to
                  which Employee is entitled pursuant to paragraph 2(b) herein
                  shall be paid as provided in said paragraph. As a condition to
                  Employee's receipt of the Severance Payments, Employee will be
                  required


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                  to execute a Release in the form attached hereto as SCHEDULE
                  OF RELEASE; and

            (iv)  during the maximum period permitted by COBRA, but in no event
                  past the end of the Severance Period, AGT will provide
                  Employee, at AGT's expense, with COBRA coverage. During the
                  Severance Period, Employee shall not be entitled to any other
                  benefits provided in paragraph 2(d) except any conversion and
                  other rights which survive termination of employment under any
                  group life, disability insurance and/or other benefit plans of
                  AGT in which Employee participates or participated as an
                  employee of AGT. Anything contained herein to the contrary,
                  AGT's obligation to provide COBRA benefits shall terminate
                  upon the date the Employee is first eligible for medical
                  insurance related to his new employment.

      (b)   If AGT terminates this Agreement for Cause, or if Employee dies or
            becomes permanently disabled (as hereinafter defined), then AGT
            shall pay to Employee all accrued but unpaid amounts hereunder with
            respect to the period prior to the date of termination, death or
            disability (including, without limitation, Base Salary, unused
            vacation pay and reimbursable expenses and, in the event Employee
            dies or becomes permanently disabled, any unpaid bonus which may
            have been awarded to or earned by Employee); said amounts to be paid
            to Employee (or his estate) within 30 days after the date of such
            termination, death or disability, except that any unpaid MIP bonus
            to which Employee is entitled pursuant to paragraph 2(b) herein
            shall be paid as provided in said paragraph.


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      (c)   For purposes of this Agreement, "Cause" shall mean: (i) indictment
            for, conviction of or pleas of guilty or nolo contendre to any
            felony (other than an offense involving a motor vehicle) or business
            related misdemeanor; (ii) theft, fraud or embezzlement; (iii) an act
            of gross neglect or gross misconduct; (iv) habitual drug or alcohol
            abuse; (v) excessive absenteeism not related to illness; (vi) the
            intentional failure to perform assigned duties; (vii) a material
            breach of any of the provisions of this Agreement; (viii) the
            commission of any other action with the intent to harm or injure
            AGT, its parents, subsidiaries or affiliates; which, in the case of
            clauses (v), (vi), (vii) and/or (viii) above, are not remedied by
            Employee within thirty (30) days after receipt by Employee of
            written notice from the Chairman of the Board of Directors of AGT
            (the "Board").

      (d)   For purposes of this Agreement, "Good Reason" shall mean (i) if any
            payment to be made by AGT to Employee is not made when due and
            remains unpaid for fifteen (15) days after written notice from
            Employee, and/or (ii) any other material breach by AGT of this
            Agreement which is not remedied within thirty (30) days after
            receipt of written notice thereof to AGT by Employee (including,
            without limitation, any demotion in Employee's title or position
            and/or any material diminution of Employee's powers, duties or
            responsibilities).

      (e)   "Permanent disability" shall mean physical or mental illness,
            disability or


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            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 less than such 8 or 16 weeks, respectively,
            Employee shall nonetheless be entitled to full compensation during
            such period. In the event of termination as a result of disability
            under 5(b) above, Employee shall, in addition to any other payments
            or benefits hereunder, be entitled to receive a severance payment
            pursuant to company policy, but not less than one (1) year of Base
            Salary.

      (f)   In the event that, on January 15, 2005, (A) Employee is still
            employed by AGT, and (B) for any reason whatsoever, AGT has failed
            to offer to enter into a written agreement extending the term of
            Employee's employment by AGT for a period of at least one (1) year
            beyond January 15, 2005, upon terms at least as favorable to
            Employee as those set forth herein, then AGT shall pay and/or
            provide to Employee the following:

                  (i)   all accrued but unpaid amounts payable hereunder with
                        respect to the period ending on January 15, 2005
                        (including, without limitation, base salary, any unpaid
                        bonus which may have been awarded to or earned by
                        Employee, unused vacation pay and reimbursable
                        expenses); and

                  (ii)  all base salary which would have become payable to
                        Employee under this Agreement, as if this term of this
                        Agreement had not expired and Employee remained employed
                        by AGT for an


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                        additional period of one (1) year following such
                        expiration, (the "Continuation Period").

                  (iii) the amounts referred to in subparagraphs (i) and (ii)
                        above are sometimes hereinafter referred to as the
                        "Continuation Payments". The Continuation Payments shall
                        be paid in a lump sum (without present value discount)
                        within thirty (30) days after the date of the expiration
                        of the Term except that any unpaid MIP bonus to which
                        Employee is entitled pursuant to paragraph 2(b) herein
                        shall be paid as provided in said paragraph. As a
                        condition to Employee's receipt of the Continuation
                        Payments, Employee will be required to execute a Release
                        in the form attached hereto as SCHEDULE OF RELEASE; and

                  (iv)  during the maximum period permitted by COBRA, but in no
                        event past the end of the Continuation Period, AGT will
                        provide Employee, at AGT's expense, with COBRA coverage.
                        During the Continuation Period, Employee shall not be
                        entitled to any other benefits provided in paragraph
                        2(d) except any conversion and other rights which
                        survive termination of employment under any group life,
                        disability insurance and/or other benefit plans of AGT
                        in which Employee participates or participated as an
                        employee of AGT. Anything contained herein to the
                        contrary, AGT's obligation to provide COBRA benefits
                        shall terminate upon the


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                        date the employee is first eligible for medical
                        insurance related to his new employment.

      (g)   Employee shall not be obligated to seek or accept other employment
            in mitigation of any amounts payable hereunder and the obtaining of
            any such other employment shall in no event effect any reduction of
            AGT's obligations to make the payments or, except as provided in
            subsections (a)(iv) and (f)(iv) above, to provide the benefits
            required hereunder."

      6. Noncompetition, Nonsolicitation and Confidentiality. As a material
inducement to continue 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.

      7. 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.

      8. 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: Joseph Dennis Vecchiolla, 2707 Royal
                  Lytham Court, St. Charles, Illinois 60174

            b.    if to AGT, to: Chairman of the Board of Directors, 450 West
                  33rd Street, New York, New


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                  York 10001-2681, with a copy to Martin D. Krall, Chief Legal
                  Officer, at 450 West 33rd Street, Third Floor, New York New
                  York 10001-2681.

      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.

      9.    General.

            a.    Any controversy or claim arising out of or relating to this
                  Agreement, or any breach thereof, shall be subject to
                  resolution in the state or federal courts in New York and
                  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
                  without giving effect to principles of conflicts of laws
                  thereof.

            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. 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, including without limitation the employment
                  agreements between AGT and Employee dated May 1, 2000,
                  November 30, 2000 and Amendment #1 to Employment Agreement
                  dated March 1, 2002.


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            c.    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
                  affiliates. This Agreement is personal to employee, and
                  neither this Agreement nor any of Employee's rights or
                  obligations hereunder may be assigned, pledged or encumbered
                  by him, without the prior written approval of AGT.

            d.    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 waiver of
                  the breach of any other term or covenant in this Agreement.

            e.    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.


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            f.    This Agreement may be executed in counterparts; each of which
                  shall be deemed to be an original but all of which together
                  shall be deemed to be one and the same instrument.

            g.    Except with regard to employee's obligations under the
                  Noncompetition, Nonsolicitation and Confidentiality Agreement
                  attached hereto as Exhibit A, and with regard to AGT's
                  obligations under Paragraphs 5, this Agreement shall be of no
                  further force and effect and AGT shall have no further
                  obligations hereunder after the expiration or termination of
                  this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
shown below.

JOSEPH D. VECCHIOLLA                     APPLIED GRAPHICS TECHNOLOGIES, INC.


By: _____________________________        By: _______________________________

Dated: __________________________        Title: ____________________________

                                         Dated: ____________________________


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