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                                                                 Exhibit 10.6(b)

                              EMPLOYMENT AGREEMENT

      This Agreement, effective as January 31, 2003, is entered into by and
between Applied Graphics Technologies, Inc., a Delaware corporation ("AGT"), and
Fred Drasner, (hereinafter referred to as the "Employee"), an individual
presently residing at Waldorf Towers, 100 East 50th Street, #32H, New York, NY
10022. 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 31, 2003 (the "Commencement Date") and ending on January 30, 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 Seven Hundred and
Fifty Thousand Dollars ($750,000) 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 continue to reimburse Employee's other Employer for a
pro rata portion of the expenses related to certain of Employee's staff;
provided that such reimbursement is consistent with the practice existing on the
date of this Agreement.

      3. Duties. Employee currently holds the positions, and fulfills the
duties, of Chairman and Chief Executive Officer as such duties are defined by
AGT's Board of Directors. Such duties are performed on a part-time basis, since
Employee has numerous other business


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responsibilities. It is understood that AGT may intend 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 understood that the
Employee's duties may be modified from time to time in the future. However, the
Employee must retain either the title of Chairman or Chief Executive Officer and
his duties must, at a minimum, consist of those customarily performed by a
person holding such title and should at least involve responsibility for AGT's
strategic direction, relationship with senior lenders and efforts to improve
sales and marketing. If Employee serves as Chairman, he shall report to the
Board of Directors. If he serves only as CEO, he shall report to the Chairman or
to the Board of Directors, as determined by said Board. Employee shall devote
approximately the same portion of his business efforts to the performance of his
duties hereunder as he has devoted to his duties to AGT since it became a public
company in 1996; and shall do so to the best of his abilities. The Employee's
principal office shall be in the New York metropolitan area. 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


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            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 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 two (2) years 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


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                  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 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


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            that any unpaid MIP bonus to which Employee is entitled pursuant to
            paragraph 2(b) herein shall be paid as provided in said paragraph.

      (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"); provided that, Employee's failure to perform his
            duties hereunder on a full time basis does not constitute "Cause"
            hereunder as long as Employee is complying with the standard set
            forth in paragraph 3 herein.

      (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,
            any relocation of


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            Employee's principal office out of the New York metropolitan area,
            and/or any material diminution of Employee's powers, duties or
            responsibilities).

      (e)   "Permanent disability" shall mean 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 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 30, 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 30, 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 30, 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


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            (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
                  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


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                  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.

      (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


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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: Fred Drasner, Waldorf Towers, 100 East
                  50th Street, #32H, New York, NY 10022

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


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                  parties hereto concerning the subject matter hereof, and
                  supersedes all prior agreements, arrangements and
                  understandings between the parties hereto.

            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


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                  way be affected or impaired thereby.

            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.

FRED DRASNER                              APPLIED GRAPHICS TECHNOLOGIES, INC.


By: _____________________________         By: _______________________________

Dated: __________________________         Title: ____________________________

                                          Dated: ____________________________


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