SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C.  20549

                              FORM 10-Q

           QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
                 THE SECURITIES EXCHANGE ACT OF 1934

   For Quarter Ended September 30, 1999    Commission File No.  1-9399

                   RESEARCH FRONTIERS INCORPORATED
         (Exact name of registrant as specified in charter)


                    Delaware                         11-2103466
     (State of incorporation or organization)    (IRS Employer
                                              Identification No.)

     240 Crossways Park Drive, Woodbury, N.Y.           11797
        (Address of principal executive offices)      (Zip Code)



                             (516) 364-1902
         (Registrant's telephone number, including area code)

               Indicate by check mark whether the registrant (1) has filed all
     reports required to be filed by Section 13 or 15(d) of the Securities
     Exchange Act of 1934 during the preceding 12 months (or for such
     shorter period that the registrant was required to file such reports),
     and (2) has been subject to such filing requirements for the past 90
     days.

                      Yes    X          No    __

               Indicate the number of shares outstanding of each of the
     issuer's classes of common stock, as of the latest practicable date:
     As of November 12,1999, there were outstanding 11,335,552 shares of
     Common Stock, par value $0.0001 per share.



                      RESEARCH FRONTIERS INCORPORATED

                               Balance Sheets

                                                 September 30,1999
                    Assets                           (Unaudited)    Dec.31,1998

Current assets:
 Cash and cash equivalents                         $    6,679,742   5,403,283
 Marketable investment securities-held-to-maturity      1,215,795   1,189,386
 Accrued interest and dividends receivable                 18,579       3,071
 Prepaid expenses and other current assets                111,793     132,713
            Total current assets                        8,025,909   6,728,453

Fixed assets, net                                         228,319     269,084
Deposits and other assets                                  23,754      23,754

            Total assets                          $     8,277,982   7,021,291

            Liabilities and Shareholders' Equity

Current liabilities:
 Accounts payable                                         101,908     115,418
 Deferred revenue                                          12,500      56,250
 Accrued expenses                                          87,991     109,134

           Total liabilities                              202,399     280,802

Shareholders' equity:
 Capital stock, par value $0.0001 per share; authorized
  100,000,000 shares, issued and outstanding 11,297,152
  shares and 10,929,041 shares                              1,130       1,093
 Additional paid-in capital                            36,848,415  33,982,066
 Accumulated deficit                                  (28,621,001)(26,357,709)
                                                        8,228,544   7,625,450

 Notes receivable from officers                          (152,961)   (884,961)

          Total shareholders' equity                    8,075,583   6,740,489

          Total liabilities and shareholders' equity $  8,277,982   7,021,291

See accompanying notes to financial statements


                      RESEARCH FRONTIERS INCORPORATED

                          Statements of Operations

                                (Unaudited)


                                   Nine months ended       Three months ended
                             Sept.30,1999 Sept.30,1998 Sept.30,1999 Sept.30,1998

Fee income                    $  103,750       78,125  $    12,500      28,125

Operating expenses             1,168,659    1,238,418      366,686     360,376

Purchase of patents              289,177           --           --          --

Research and development       1,203,722    1,215,527      391,084     368,460

                               2,661,558    2,453,945      757,770     728,836

Operating loss                (2,557,808)  (2,375,820)    (745,270)   (700,711)

Net investment income            199,515      305,925       73,417      95,124

Other income, net                     --       91,379           --          --

Interest income on note
 receivable from officer          95,001        7,600       95,001          --

Net loss                    $ (2,263,292)  (1,970,916)   $(576,852)   (605,587)

Basic and diluted net loss
  per common share          $       (.21)        (.18)   $    (.05)       (.06)

Weighted average number of
 common shares outstanding    11,018,830   10,846,161   11,156,023  11,004,858

  See accompanying notes to financial statements.


                    RESEARCH FRONTIERS INCORPORATED
                        Statements of Cash Flows
                              (Unaudited)
                                                          Nine months ended
                                                    Sept. 30,1999  Sept. 30,1998

Cash flows from operating activities:
 Net loss                                             $(2,263,292)   (1,970,916)
 Adjustments to reconcile net loss to net cash
  used in operating activities:
   Depreciation and amortization                           60,850        75,511
   Interest income on officer notes receivable            (95,001)           --
   Expense relating to issuance of warrants
    for services performed                                  9,168        27,058
   Expense relating to issuance of stock
    for services performed                                  3,000            --
   Cashless exercise of warrants                           21,820            --
   Changes in assets and liabilities:
    Royalty receivable                                         --       (50,000)
    Accrued interest and dividends receivable             (15,508)       (7,973)
    Prepaid expenses and other current assets              20,920       (40,539)
    Deposits and other assets                                  --        53,622
    Deferred revenue                                      (43,750)       84,375
    Accounts payable & accrued expenses                   (34,619)     (243,331)

     Net cash used in operating activities             (2,336,412)   (2,072,193)

Cash flows from investing activities:
 Proceeds from maturity of treasury securities          1,189,386     9,226,800
 Purchases of treasury securities                      (1,215,795)   (4,586,329)
 Purchases of fixed assets                                (20,085)      (88,696)

     Net cash provided by (used in) investing activities  (46,494)    4,551,775

Cash flows from financing activities:
 Net proceeds from issuances of common stock            3,479,840       357,475
 Repayment of loans to officers                           345,000        30,000
 Purchase of treasury stock                              (165,475)     (518,325)

    Net cash provided by (used in) financing activities 3,659,365      (130,850)

Net increase in cash and cash equivalents               1,276,459     2,348,732

Cash and cash equivalents at beginning of year          5,403,283     2,157,687

Cash and cash equivalents at end of period           $  6,679,742     4,506,419

Non-cash financing activities:

Principal payment on officer's notes receivable
     by surrendering of common stock                 $    387,000            --

See accompanying notes to financial statements.

                   RESEARCH FRONTIERS INCORPORATED
                    Notes to Financial Statements
                         September 30, 1999
                             (Unaudited)

Basis of Presentation

The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
presentation of the financial position, results of operations, and cash flows
for the interim periods to which the report relates.  The results of operations
for the nine-month period ended September 30, 1999 are not necessarily
indicative of the results to be expected for the full year.  The notes included
herein should be read in conjunction with the notes to the financial
statements of the Company as of December 31, 1998 and for the three
years then ended, included in the Company's Annual Report on Form 10-K.

Business

Research Frontiers Incorporated (the Company) operates in a single
business segment which is engaged in the development and marketing of
technology and devices to control the flow of light.  Such devices, often
referred to as "light valves" or suspended particle devices (SPDs), use
microscopic particles that are either incorporated within a liquid suspension
or a film, which is usually enclosed between two glass or plastic plates,
having transparent, electrically conductive coatings on the facing surfaces
thereof.  At least one of the two plates is transparent.

Patent Costs

The Company expenses costs relating to the development or acquisition of
patents due to the uncertainty of the recoverability of these items.

Deferred Revenue

The Company has entered into a number of license agreements covering
potential products.  The Company receives minimum annual royalties
under certain license agreements and records fee income for the amounts
earned by the Company.  Certain of the fees are paid to the Company in
advance of the period in which they are earned resulting in deferred
revenue.

Shareholders' Equity

Issuance of Common Stock
For the nine months ended September 30, 1999, the Company received
$3,479,840 of net cash proceeds from (i) the issuance of 51,025 shares of
common stock issued upon the exercise of options resulting in net proceeds
of $305,557 and (ii) 373,789 shares of common stock issued upon the
exercise of warrants resulting in net proceeds of $3,174,283.  In addition,
2,850 shares were issued through the cancellation of 33,250 warrants,
resulting in public relations expense of $21,820, and 414 shares were
issued to a director in payment of $3,000 in directors fees.

For the nine months ended September 30, 1998, the Company received
$357,475 of net cash proceeds from (i) the issuance of 36,600 shares of
common stock issued upon the exercise of options resulting in net proceeds
of $217,475 and (ii) the issuance of 20,000 shares of common stock issued
upon the exercise of warrants resulting in net proceeds of $140,000.  The
Company also issued 688,673 shares of common stock pursuant to the
exercise of a redeemable prepaid warrant during the nine months ended
September 30, 1998.

Treasury Stock
For the nine months ended September 30, 1999, the Company purchased
in the open market and subsequently retired 21,500 shares of treasury stock
with an aggregate cost of $165,475.  For the three months ended September
30, 1999, the Company received 38,467 shares of common stock as partial
payment of notes receivable from an officer pursuant to a settlement
agreement as discussed below.  These shares were subsequently retired by
the Company. For the nine months ended September 30, 1998, the
Company purchased in the open market and subsequently retired 84,000
shares of treasury stock with an aggregate cost of $518,325.

Issuance of Warrants
For the nine months ended September 30, 1999, the Company issued
warrants to purchase 50,000 shares at prices ranging from $9.00 to $21.00
per share in payment for investor relations services provided to the
Company, which will vest 10,000 shares per quarter commencing April 1,
1999 if the agreement regarding the provision of such services remains in
effect.  The Company recorded $9,168 of expense in connection with the
issuance of these warrants through September 30, 1999.  No new warrants
were issued by the Company for the three months ended September 30,
1999.

Payment of Notes Receivable from Officer

In a settlement agreement dated June 30, 1999, the Company settled a
declaratory judgment action brought on March 25, 1999 in the Supreme
Court of the State of New York, County of Nassau, by Jean Thompson in
her individual capacity and as Executrix of the estate of Robert I.
Thompson, a former officer and director of the Company. The action did
not seek monetary damages and  essentially sought a declaration that
certain common stock of the Company securing loans made to Mr.
Thompson was not available as collateral to secure such loans.  Under the
settlement agreement, among other things, the parties agreed that Jean
Thompson and the estate of Robert I. Thompson would pay the $732,000
in loans made by the Company from 1993 to 1997 by paying the Company
$345,000 in cash, and delivering to the Company for cancellation 38,467
shares of common stock and options to purchase 181,447 shares of
common stock.  This payment and delivery of the shares and stock options
for cancellation were made in August 1999, resulting in the payment in full
of all outstanding loans, and the Company recording interest income on
such loans of $95,001. It is the Company's policy to record interest income
on notes receivable from officers as received.

Comprehensive Income

The Company accounts for its comprehensive income under the provisions
of Statement of Financial Accounting Standards No. 130,  "Reporting
Comprehensive Income." (Statement 130).  Statement 130 requires that
companies disclose comprehensive income, which includes net income,
foreign currency translation adjustments, minimum pension liability
adjustments, and unrealized gains and losses on marketable securities
classified as available-for-sale.  Because the Company did not have any
foreign currency translation adjustments, minimum pension liability
adjustments, or unrealized gains or losses on marketable securities
classified as available-for-sale, for the nine months ended September 30,
1999 and 1998, comprehensive loss equaled the net loss of $2,263,292 and
$1,970,916, respectively.

                Management's Discussion and Analysis of
             Financial Condition and Results of Operations

Results of Operations for the Nine Month Periods Ended September 30,
1999 and 1998

The Company's fee income from licensing activities for the first nine
months of 1999 was $103,750 as compared to fee income of $78,125 for
the first nine months of 1998.

Operating expenses decreased by $69,759 for the first nine months of 1999
to $1,168,659 from $1,238,418 for the first nine months of 1998.  This
decrease was primarily the result of decreased public relations, payroll,
depreciation, office and consulting expenses offset by increased
professional fees, insurance, rent, travel and stock listing expenses.

Research and development expenditures decreased modestly by $11,805
to $1,203,722 for the first nine months of 1999 from $1,215,527 for the
first nine months of 1998.  This decrease was primarily the result of lower
costs for materials and lower depreciation expenses, offset by higher
research-related salaries and consulting expenses.

In June of 1999, the Company purchased 74 patents and patent applications
from Glaverbel S.A. covering various inventions relating to SPD
technology for which a lump-sum payment of $289,177 was made.  In
accordance with the Company's accounting policy, such amount was expensed.

The Company's net gain from its investing activities for the first nine
months of 1999 was $199,515, as compared to a net gain from its investing
activities of $305,925 for the first nine months of 1998.  This difference
was primarily due to a higher level of average investment balances in the
first nine months of 1998 compared to the same period in 1999 as a result
of the Company receiving $5.0 million towards the end of 1997 in
connection with the issuance of the redeemable prepaid warrant.  In
addition, in August 1999 the Company recorded $95,001 of interest income
from the repayment of notes receivable from one of its officers.

During the first nine months of 1998, the Company received $135,000 of
key man life insurance proceeds payable on the death of its former
Executive Vice President, Robert I. Thompson.  This resulted in the
Company recording non-recurring other income of $91,379 during the first
nine months of 1998 representing the difference between the amount
received by the Company and the cash surrender value of such life
insurance policy that was previously recorded on the Company's balance sheet.

As a consequence of the factors discussed above, the Company's net loss
was $2,263,292 ($0.21 per share) for the first nine months of 1999 as
compared to  $1,970,916 ($0.18 per share) for the first nine months of 1998.

Results of Operations for the Three Month
Periods Ended September 30,1999 and 1998

The Company earned $12,500 in fee income during the third quarter of
1999, as compared to fee income of $28,125 during the third quarter of 1998.

Operating expenses increased modestly by $6,310 for the third quarter of
1999 to $366,686 from $360,376 for the third quarter of 1998.  This
increase was primarily the result of increased public relations, professional
fees, insurance, rent, travel and stock listing expenses, offset by lower
payroll, depreciation, office and consulting expenses.

Research and development expenditures increased by $22,624 to $391,084
for the third quarter of 1999 from $368,460 for the third quarter of 1998.
This increase was primarily the result of higher research-related salaries
and consulting expenses, offset by lower costs for materials and lower
depreciation expenses.

The Company's net gain from its investing activities for the third quarter
of 1999 was $73,417, as compared to a net gain from its investing activities
of $95,124 for the third quarter of 1998.  This difference was primarily due
to a higher level of average investment balances during 1998 compared to
the same period in 1999 as a result of the Company receiving $5.0 million
towards the end of 1997 in connection with the issuance of the redeemable
prepaid warrant. In addition, in August 1999 the Company recorded
$95,001 of interest income from the repayment of notes receivable from
one of its officers.

As a consequence of the factors discussed above, the Company's net loss
was $576,852 ($0.05 per share) for the third quarter of 1999 as compared
to $605,587 ($0.06 per share) for the third quarter of 1998.

Financial Condition, Liquidity and Capital Resources

During the first nine months of 1999, the Company's cash and cash
equivalent balance increased by $1,276,459 principally as a result of  the
proceeds received, net of expenses, from the sale of common stock of
$3,479,840 from the exercise of options and warrants, the proceeds of
which have been invested by the Company in short-term U.S. Treasury
money market funds, offset by cash used to fund the Company's net loss of
$2,263,292, changes in working capital of $72,957, and the purchase of
21,500 shares of treasury stock for $165,475 (which shares were
subsequently retired).  At September 30, 1999, the Company had working
capital of $7,823,510 and its shareholders' equity was $8,075,583.

In a settlement agreement dated June 30, 1999, the Company settled a
declaratory judgment action brought on March 25, 1999 in the Supreme
Court of the State of New York, County of Nassau, by Jean Thompson in
her individual capacity and as Executrix of the estate of Robert I.
Thompson, a former officer and director of the Company. The action did
not seek monetary damages and  essentially sought a declaration that
certain common stock of the Company securing loans made to Mr.
Thompson was not available as collateral to secure such loans.  Under the
settlement agreement, among other things, the parties agreed that Jean
Thompson and the estate of Robert I. Thompson would pay the $732,000
in loans made by the Company from 1993 to 1997 by paying the Company
$345,000 in cash, and delivering to the Company for cancellation 38,467
shares of common stock and options to purchase 181,447 shares of
common stock.  This payment and delivery of the shares and stock options
for cancellation were made in August 1999, resulting in the payment in full
of all outstanding loans, and the Company recording interest income on
such loans of $95,001. It is the Company's policy to record interest income
on notes receivable from officers as received.

The Company expects to use its cash and the proceeds from maturities of
its investments to fund its research and development of SPD light valves
and for other working capital purposes.  The Company's working capital
and capital requirements depend upon numerous factors, including the
results of research and development activities, competitive and
technological developments, the timing and cost of patent filings, the
development of new licensees and changes in the Company's relationships
with its existing licensees.  The degree of dependence of the Company's
working capital requirements on each of the foregoing factors cannot be
quantified; increased research and development activities and related costs
would increase such requirements; the addition of new licensees may
provide additional working capital or working capital requirements, and
changes in relationships with existing licensees would have a favorable or
negative impact depending upon the nature of such changes.  Based upon
existing levels of expenditures, assumed ten percent annual increases
therein, existing cash reserves and budgeted revenues, the Company
believes that it would not require additional funding for at least the next
two to three years (without giving effect to any new financing raised).
There can be no assurance that expenditures will not exceed the anticipated
amounts or that additional financing, if required, will be available when
needed or, if available, that its terms will be favorable or acceptable to the
Company.  Eventual success of the Company and generation of positive
cash flow will be dependent upon the commercialization of products using
the Company's technology by the Company's licensees and payments of
continuing royalties on account thereof.

The Year 2000 issue is a result of many computer programs using only two
digits to identify a year in the date field.  These programs were designed
and developed without considering the impact of the upcoming change in
the century.  If not corrected, many computer applications could fail or
create erroneous results by or at the Year 2000.   The Company is aware of
the issues associated with the programming code in existing computer
systems as the millennium (Year 2000) approaches.  Although there cannot
be absolute assurance,  the Company has assessed and considered the
impact of Year 2000 issues on its internal computer systems and
applications and believes that they are Year 2000 compliant.  In addition,
the Company believes that there are no key suppliers, vendors or other
entities with which the Company does business which are not either Year
2000 compliant or taking steps to achieve Year 2000 compliance on a
timely basis.  The Company has no mission-critical systems which would
be adversely affected by Year 2000 issues, and has received confirmations
from key outside vendors and other parties that they are or expect to be
Year 2000 compliant. Therefore, the Company believes that the
consequences of a change to the Year 2000 should not have a material
impact on the Company's business, results of operations, or financial condition.

The information set forth in this Report and in all publicly disseminated
information about the Company, including the narrative contained in
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" above, includes "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, and is subject to the safe harbor created by that section.
Readers are cautioned not to place undue reliance on these forward-looking
statements as they speak only as of the date hereof and are not guaranteed.

PART II.  OTHER INFORMATION

Item 5.   Other Information.

On August 11, 1999, Research Frontiers and Hitachi Chemical Co., Ltd.
("Hitachi") jointly announced that Hitachi has been granted a worldwide
non-exclusive license to manufacture and sell SPD light-controlling film
to Research Frontiers' authorized licensees. The license also permits
Hitachi to make and sell emulsions used to make SPD film to such
authorized users. With the signing of this new license agreement, Hitachi
becomes the fourth major company licensed by Research Frontiers to
produce SPD film for use in a variety of light-control products.  Hitachi
also becomes the second company authorized by Research Frontiers to
produce emulsions used to make such SPD films, along with Dainippon Ink
and Chemicals which, in June 1999, was also granted a non-exclusive
emulsion license by Research Frontiers.  The Company believes that this
development should expedite the widespread availability of SPD film and
end products using its proprietary SPD light control technology.  In
addition to Hitachi Chemical, Research Frontiers has licensed SPD film
making to General Electric Company (NYSE: GE), Hankuk Glass
Industries Inc. (which outside of Japan is reportedly Asia's largest flat glass
producer), and Material Sciences Corporation (NYSE: MSC), which is the
world's second largest producer of specialty window films.  These
companies, as well as other licensees and prospective licensees of Research
Frontiers are expected to greatly benefit from this new agreement.
Licensees of Research Frontiers who incorporate SPD technology into end
products will pay Research Frontiers a royalty of 4-10% of net sales of
licensed products under license agreements currently in effect.  Research
Frontiers had previously noted its goal of having multiple sources of all
components used in SPD products.  This should greatly simplify the work
of the Company's licensees and speed up the large-scale availability of
SPD films and products using such films, and encourage innovation,
healthy competition, and cooperation among the Company's licensees.
Having at least two sources of supply of components to end-users is also
an important factor in many industries, and essential in the automotive
industry. Hitachi reportedly is one of Japan's leading chemical products
manufacturers with over 100 subsidiaries and 19,285 employees worldwide
and revenues for the fiscal year ended March 31, 1999 exceeding U.S. $4.4
billion.

Item 6.    Exhibits and Reports on Form 8-K

     (a)    Exhibits.

10.15     License Agreement effective as of August 9, 1999 between the
          Company and Hitachi Chemical Co., Ltd.  Filed herewith with
          portions of this document omitted pursuant to the Registrant's
          request for confidential treatment and filed separately with the
          Securities and Exchange Commission.

     (b)  Reports on Form 8-K.  None.

                           SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunder duly authorized.

                      RESEARCH FRONTIERS INCORPORATED
                          (Registrant)

                      /s/ Robert L. Saxe
                      Robert L. Saxe, President and Treasurer
                     (Principal Executive, Financial, and Accounting Officer)

Date: November 12, 1999

[EXHIBIT 10.15- Certain portions of this document have been omitted
in the publicly filed version of this document  pursuant to the
Registrant's request for confidential treatment and filed separately
with the Securities and Exchange Commission.]

                         LICENSE AGREEMENT
                              BETWEEN
                  RESEARCH FRONTIERS INCORPORATED
                                AND
                     HITACHI CHEMICAL CO., LTD.

     This License Agreement ("Agreement") effective as of August 9, 1999
by and between RESEARCH FRONTIERS INCORPORATED, a Delaware
corporation, having its principal place of business at 240 Crossways Park
Drive, Woodbury, New York 11797-2033 U.S.A. ("LICENSOR") and
HITACHI CHEMICAL CO., LTD., a corporation formed under the laws of
Japan, having its principal place of business at 9-25, Shibaura 4-chome,
Minato-ku, Tokyo 108-0023 Japan ("LICENSEE").  The "Effective Date" of
this Agreement shall be the date which is the last date of formal execution of
this Agreement by duly authorized representatives of the parties to this
Agreement as indicated on the signature page of this Agreement.

                               RECITALS

     WHEREAS, LICENSOR has been engaged in research and
development in the application of physicochemical concepts to Light Valves
and SPD Emulsions (both as hereinafter defined) and of methods and
apparatus relating to products incorporating such concepts (which products,
although not currently in commercial use, can include, without limitation
thereto, windows for buildings and vehicles, sunvisors, sunroofs, flat panel
displays, eyewear and rear-view mirrors); and is possessed of and can convey
information and know-how for such products and rights to manufacture, use
and sell such products; and

     WHEREAS, LICENSEE is interested in manufacturing and selling
Light Valve Film and SPD Emulsions used to make  Light Valve Film (both
as hereinafter defined); and

     WHEREAS, LICENSEE desires to acquire from LICENSOR, and
LICENSOR desires to grant to LICENSEE, certain rights and licenses with
respect to such technology of LICENSOR;

     NOW, THEREFORE, in consideration of the promises and the mutual
covenants herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as
follows.

1    DEFINITIONS.

        The following terms when used herein shall have the respective
meanings set forth in this Article 1.

"Authorized User" means LICENSOR and/or any other person or entity listed
by LICENSOR on Schedule B hereof who has been granted permission by
LICENSOR to receive SPD Emulsions or Light Valve Film from LICENSEE
under this Agreement.  LICENSEE agrees that LICENSOR in its sole
judgment may amend Schedule B hereof at any time during the term of this
Agreement for any reason by sending LICENSEE a written notice of such
amendment and specifying the reason for such change.  The persons or
entities now or hereafter listed on Schedule B may not include all of
LICENSOR's current licensees and may include prospective licensees of
LICENSOR, and for legal or practical reasons, LICENSOR may restrict
whether or not SPD Emulsions and Light Valve Film may be sold, leased or
transferred to such person or entity, and/or the application that such SPD
Emulsions or Light Valve Film may be used for by the recipient.  LICENSEE
agrees that it and its permitted sublicensees hereunder shall cease all sales,
leases, or other dispositions of SPD Emulsions and Light Valve Film to any
person or entity whose name is deleted from Schedule B by LICENSOR,
unless and until LICENSOR consents in writing to the resumption of such
sales, leases or other dispositions (a) immediately upon receipt of any written
notice from LICENSOR that any person or entity is no longer included on
Schedule B, or (b) if either LICENSEE or its permitted sublicensees becomes
aware that any such person or entity listed on Schedule B or otherwise
receiving SPD Emulsions or Light Valve Film is making any improper use of
SPD Emulsions or Light Valve Film, in which case LICENSEE shall
promptly notify LICENSOR of such improper use.

"Licensed Territory " means all countries of the world.

"Light Valve" means a variable light transmission device comprising: a cell
including cell walls, containing or adapted to contain an activatable material,
described hereinafter, such that a change in the optical characteristics of the
activatable material affects the characteristics of light absorbed by,transmit-
ted through and/or reflected from the cell;means incorporated in or on the cell,
or separate therefrom for applying an electric or magnetic field to the
activatable material within the cell; and coatings, (including, but not limited
to, electrodes), spacers, seals, electrical and/or electronic components, and
other elements incorporated in or on the cell.  The activatable material, which
the cell contains or is adapted to contain, includes in it solid suspended
particles, which when subjected to a suitable electric or magnetic field, orient
to produce a change in the optical characteristics of the device, and may be
either in the form of a liquid suspension, gel, film or other material.

"Light Valve Film" means a film or sheet or more than one thereof
comprising a suspension of particles used or intended for use solely in or as
a Light Valve.  The Light Valve Film shall comprise either (a) a suspension
of particles dispersed throughout a continuous liquid phase enclosed within
one or more rigid or flexible solid films or sheets,or (b) a discontinuous phase
of a liquid comprising dispersed particles, said discontinuous phase being
dispersed throughout a continuous phase of a rigid or flexible solid film or
sheet.  The Light Valve Film may also comprise one or more other layers such
as, without limitation, a film, coating or sheet or combination thereof, which
may provide the Light Valve Film with (1) scratch resistance, (2) protection
from ultraviolet radiation, (3) reflection of infrared energy, and/or (4)
electrical conductivity for transmitting an applied electric or magnetic field
to the activatable material.

"SPD Emulsions" means any component or components used or usable in or
used or usable to make  a Light Valve Film, including, but not limited to,
particles, particle precursors, coatings, polymers, liquid suspensions and
suspending liquids, or any combination thereof.

"Technical Information" means all useful information relating to apparatus,
methods, processes, practices, formulas, techniques, procedures, patterns,
ingredients, designs and the like including (by way of example) drawings,
written recitations of data, specifications, parts, lists, assembly procedures,
operating and maintenance manuals, test and other technical reports and the
like owned or controlled by LICENSOR, to the extent they exist, that relate
to SPD Emulsions and/or to the suspensions used or usable for SPD
Emulsions or Light Valve Film and that consist of concepts invented or
developed by LICENSOR and which are deemed significant by LICENSOR.
Know-how of LICENSOR's suppliers and of LICENSOR's other licensees
and their sublicensees under licenses from LICENSOR shall not be
considered Technical Information owned or controlled by LICENSOR.

2    GRANT OF LICENSE.

     2.1  License.  During the term of this Agreement, LICENSOR hereby
grants LICENSEE a non-exclusive right and license to use (a) all of the
Technical Information furnished by LICENSOR pursuant to this Agreement,
and (b) any invention claimed in (i) any of the unexpired patents now or
hereafter listed on Schedule A attached hereto or (ii) unexpired patents which
issue from pending patent applications now or hereafter listed in Schedule A,
and any continuations, continuations-in-part, divisions, reissues,
reexaminations, or extensions thereof to make, and to lease, sell, or otherwise
dispose of SPD Emulsions and Light Valve Film manufactured by
LICENSEE pursuant to this Agreement solely to an Authorized User in the
Authorized User's permitted territory and for the applications specified and
purpose permitted on Schedule B hereof.  The license granted pursuant to this
Section 2.1 shall be royalty-free to LICENSEE and its permitted sublicensees
hereunder.  By virtue of the disclosure of Technical Information and training
provided by LICENSOR under this Agreement, all SPD Emulsions and Light
Valve Film sold, leased or otherwise disposed of by or for LICENSEE
hereunder shall be deemed to have been manufactured at least in part using
the Technical Information provided by LICENSOR. The foregoing license is
only a license with respect to SPD Emulsions and Light Valve Film and
nothing contained in this Agreement shall permit LICENSEE to make, sell,
use or otherwise dispose of other Light Valve products.

     2.2   No Other Rights.  LICENSEE agrees that, except for the specific
licenses granted to it under Section 2.1 hereof, LICENSEE has not acquired
any rights or licenses under this Agreement to use SPD Emulsions or any
components thereof made by or for LICENSEE pursuant to this Agreement
except for the purposes of research and development pursuant to Section 4.1
hereof and as specifically licensed in Section 2.1 hereof.

     2.3  Sublicenses.  LICENSEE shall have the right to grant non-exclusive
sublicenses to any wholly-owned and controlled subsidiary of LICENSEE,
whose obligations LICENSEE hereby guarantees, and which acknowledges
to LICENSOR in writing that it wishes to become a sublicensee hereunder
prior to doing so and agrees to be bound by the terms and conditions of this
Agreement. All sublicenses shall (i) be non-exclusive, (ii) shall terminate with
the termination of the rights and licenses granted to LICENSEE under Section
2.1 hereof, and be otherwise limited in accordance with the limitations and
restrictions which are imposed on the rights and licenses granted to
LICENSEE hereunder, (iii) contain confidentiality provisions no less
protective than those contained in Section 12.1 hereof, and (iv) shall contain
such other terms, conditions, and licenses as are necessary to enable
LICENSEE to fulfill its obligations hereunder. LICENSEE shall send
LICENSOR a copy of every sublicense agreement or other agreement entered
into by LICENSEE in connection with a sublicense hereunder within thirty
(30) days of the execution thereof.

3    REPORTS AND RECORD-KEEPING.

     3.1  Reports.  Within 45 days after the end of each fiscal quarter,
LICENSEE shall send to LICENSOR a quarterly report setting forth in
reasonable detail the quantity of SPD Emulsions manufactured each quarter
and the amount of SPD Emulsions sold, leased, disposed of, or delivered by
or for LICENSEE and its sublicensees during such quarter to Authorized
Users and samples provided to third parties, with the amounts sold or
otherwise provided to each Authorized User, including sample recipients, and
their identity clearly broken down. The first report submitted under this
Agreement shall cover the period from the Effective Date of the Agreement
to the end of the first quarter in which SPD Emulsions are produced
hereunder.  LICENSEE shall also furnish to LICENSOR at the same time it
becomes available to any third party, a copy of each brochure, standard price
list, advertisement or other marketing and promotional materials prepared,
published or distributed by LICENSEE or its sublicensees relating to SPD
Emulsions.

     3.2  Recordkeeping.  LICENSEE shall keep and shall cause each
sublicensee to keep for six (6) years after the date of submission of each
report supported thereby, true and accurate records, files, data and books of
accounts that relate to the manufacture, sale or other disposition of  SPD
Emulsions, reasonably required for the full computation and verification of
the information to be given in the statements herein provided for.
LICENSOR and LICENSEE agree that an independent certified public
accounting firm (selected by LICENSOR from the largest ten certified public
accounting firms in the United States of America if the audited activity is
outside of Japan and from the largest ten certified public accounting firms in
Japan if the audited activity is within Japan) may audit such records, files and
books of accounts to determine the accuracy of the statements given by
LICENSEE pursuant to Section 3.1 hereof.  Such an audit shall be made upon
reasonable advance notice to LICENSEE and during usual business hours.
The cost of the audit shall be borne by LICENSOR,  unless the audit shall
disclose a material breach by LICENSEE of any term of this Agreement, or
a material inaccuracy in any report provided to LICENSOR by LICENSEE,
during the audited period, in which case LICENSEE shall bear the full cost
of such audit.

4    OBLIGATIONS OF LICENSOR AND LICENSEE.

     4.1  Development of SPD Emulsions. After four (4) months from the
Effective Date hereof, LICENSOR and LICENSEE may cooperate to develop
initial specifications for SPD Emulsions.  LICENSEE shall then use its
reasonable efforts to produce SPD Emulsions meeting such specifications for
the evaluation and use of LICENSOR and licensees and prospective licensees
of LICENSOR, and for use by LICENSEE but only for internal research and
development. After consultation with LICENSEE, LICENSOR may at any
time propose additional size or other specifications of the SPD Emulsions to
be produced under this Agreement with the disclosure of additional Technical
Information to LICENSEE with respect to such size or other specifications of
SPD Emulsions or Light Valve Film. LICENSEE may use all commercially
reasonable efforts throughout the term of this Agreement to improve the
quality of SPD Emulsions.  However, LICENSEE shall be solely responsible
for determining the specifications for all SPD Emulsions, and for any
improvements therein.

     4.2  LICENSOR Purchases.  If LICENSEE is able to develop and
manufacture SPD Emulsions and Light Valve Film suitable for use by
Authorized Users, upon request of LICENSOR, LICENSEE shall sell and
deliver to LICENSOR, SPD Emulsions, Light Valve Film or components
thereof at LICENSEE's prevailing market prices.  LICENSEE acknowledges
that LICENSOR and its present and/or future licensees (or entities who have
been granted the option of entering into license agreements with LICENSOR)
may independently manufacture (or have third parties manufacture for them)
and sell Light Valve Film or SPD Emulsions under the terms of agreements
between them and LICENSOR, or may independently manufacture and sell
Light Valve Film or SPD Emulsions which LICENSOR produces, or has
produced on its behalf.  Nothing contained in this Agreement shall impose
any obligation on LICENSOR or any other parties to purchase any SPD
Emulsions from LICENSEE.  Notwithstanding anything contained herein to
the contrary, during the term of this Agreement LICENSOR may provide
SPD Emulsions obtained by LICENSOR pursuant to this Section 4.2 to third
parties so long as LICENSOR does not receive from the recipient for the
provision of such SPD Emulsions any monetary payment in excess of
LICENSOR's purchase price plus shipping, administrative, overhead and
related costs to such recipient.

     4.3 Compliance.  LICENSEE agrees that, without limitation, any
manufacture, sale, lease, use or other disposition of SPD Emulsions that is not
in strict accordance with (1) the provisions of this Agreement, (2) restrictions
on the type of product, or the territory in which such product may be, made,
used, sold or otherwise disposed of by or for an Authorized User, or other
provisions or restrictions, which are contained in any other agreement in force
between LICENSOR and an Authorized User which is  known to LICENSEE
which relates to Light Valves, SPD Emulsions or Light Valve Film, or (3)
with the provisions of any other agreement then in force to which LICENSEE
is a party and which relates to Light Valves, SPD Emulsions or Light Valve
Film, shall be deemed a material breach of this Agreement.

     4.4  End Users.  LICENSEE agrees to require all direct recipients of
SPD Emulsions to whom SPD Emulsions is sold, leased, or otherwise
disposed of by LICENSEE or its sublicensees, to look only to LICENSEE and
not to LICENSOR or its affiliates for any claims, warranties, or liability
relating to such SPD Emulsions.  LICENSEE agrees to take all steps to
reasonably assure itself that SPD Emulsions sold, leased or otherwise
disposed of by or for LICENSEE is being used for permitted application and
territory only.  If a party which is not then listed on Schedule B hereto wishes
to obtain samples of SPD Emulsions or Light Valve Film or to purchase SPD
Emulsions or Light Valve Film  from LICENSEE, LICENSEE shall notify
LICENSOR and shall refer such party to LICENSOR.  If such party enters
into a suitable agreement with LICENSOR, LICENSOR shall inform
LICENSEE whether such party may then obtain samples or purchase SPD
Emulsions or Light Valve Film from LICENSEE.

     4.5 Laws and Regulations.  LICENSEE agrees that it shall be solely
responsible for complying with all laws and regulations affecting the
manufacture, use and sale or other disposition of SPD Emulsions by
LICENSEE and its sublicensees, and for obtaining all approvals necessary
from governmental agencies and other entities.  LICENSEE agrees to
maintain a file of all such approvals and to send LICENSOR a copy of all
such approvals (including English translations thereof in the case of approvals
required by any foreign country) within 10 business days of any written
request for such copies by LICENSOR.  LICENSEE represents and warrants
to LICENSOR that no approval from any governmental agency or ministry,
or from any third party, is required to effectuate the terms of this Agreement
or the transactions contemplated hereby.

     4.6  Purchase of Components from Others.   By virtue of the disclosure
of Technical Information and training provided from time to time by
LICENSOR to LICENSEE and to its other licensees, and each of their
sublicensees and affiliates, any component of a Light Valve, including,
without limitation, materials, suspensions, films, polymers, coatings, particle
precursors, and particles (each, a "Component"), which LICENSEE or its
sublicensees makes, has made for it, or purchases from any third party for use
in SPD Emulsions shall be deemed to have been manufactured at least in part
using the Technical Information provided by LICENSOR.  LICENSEE and
its sublicensees each hereby agrees that (i) all Components shall be used only
in strict accordance with the provisions of this Agreement, and that such
Components may not be used for any other purpose or resold by LICENSEE
or its sublicensees except as specifically permitted by the license granted in
Section 2.1 hereof, and (ii) LICENSEE and its sublicensees will only look to
the manufacturer or supplier of such Component or other item used by
LICENSEE or its sublicensees and not to LICENSOR or its affiliates for any
claims, warranties, or liability relating to such Component or other item.

     4.7  Personnel. LICENSEE agrees to assign personnel from its technical
staff  who shall primarily work on the development of SPD Emulsions during
the term of this Agreement.

     4.8  No other obligations.  LICENSEE and LICENSOR have no other
obligations to each other except as expressly provided in this Agreement.

5    TRADEMARKS.

     5.1  Trademarks.  All trademarks or service marks that either party may
adopt and use for SPD Emulsions or other products incorporating Light
Valves are and shall remain the exclusive property of the adopting party, and
the other party shall not obtain any rights and license to such marks under this
Agreement, but may inform others that the adopting party has produced SPD
Emulsions or products incorporating Light Valves under such mark or marks.
LICENSOR may require LICENSEE or its permitted sublicensees to indicate
on packaging that such product is licensed from Research Frontiers
Incorporated or to otherwise include language and/or designations approved
by LICENSOR indicating an affiliation with Research Frontiers Incorporated.

6    INSURANCE AND INDEMNIFICATION.

     6.1  Insurance.  LICENSEE shall maintain at all times ample product
liability and other liability insurance covering its operations relating to the
subject matter of this Agreement.

     6.2  Indemnification.  LICENSEE, and its affiliates, successors and
assigns and sublicensees (each, an "Indemnifying Party"), each hereby
indemnify and agree to hold harmless LICENSOR and its shareholders,
officers, directors, agents and employees (each, an "Indemnified Party"),
against any liability, damage, loss, fine, penalty, claim, cost or expense
(including reasonable costs of investigation and settlement and attorneys',
accountants' and other experts' fees and expenses) arising out of any action
or inaction by any Indemnifying Party relating to this Agreement including
an Indemnifying Party's manufacture, sale, use, lease or other disposition of
SPD Emulsions,  and related materials (other than sales by LICENSEE to
LICENSOR pursuant to Section 4.2 hereof), or other use of the information
and rights granted hereunder. Any knowledge of LICENSEE's or its
sublicensee's activities by LICENSOR or its representatives shall in no way
impose any liability on LICENSOR or reduce the responsibilities of
LICENSEE hereunder or relieve it from any of its obligations and warranties
under this Agreement.

7    FUTURE PATENTS.

     7.1  Future Patents.  Each party, at its cost, shall have the right to file
patent applications in the United States and in foreign countries covering any
invention made by such party.

     7.2  Improvements and Modifications. (a) If during the term of this
Agreement, LICENSOR makes any improvements or modifications which are
invented or developed by or on behalf of LICENSOR after the Effective Date
of this Agreement and on or before December 31, 2000, and which relate in
any way to or are useful in the design, operation, manufacture and assembly
of SPD Emulsions and/or Light Valve Film, such improvements and
modifications shall from time to time be disclosed to LICENSEE and be
automatically included, on a non-exclusive basis, in the rights and licenses
granted pursuant to Section 2.1 hereof, and any patents and/or patent
applications relating thereto shall automatically be added to Schedule A
hereof.

     (b) Any future improvements or modifications invented or developed by
or on behalf of LICENSEE, LICENSEE's sublicensees and LICENSOR
(other than as specifically described in Sections 7.2(a)) after the Effective
Date of this Agreement, if any, which relate in any way to or are useful in the
design, operation, manufacture and assembly of SPD Emulsions, Light Valve
Film and/or to the suspensions or other components used or usable in SPD
Emulsions and/or Light Valve Film shall not be included in this Agreement.
Upon written request by the non-inventing party, LICENSOR and LICENSEE
shall negotiate with each other regarding the grant of nonexclusive rights and
licenses to use such improvements and modifications, but neither party shall
be obligated to grant such rights and licenses to one another.

     (c)  During the term of this Agreement each of the parties hereto agrees
to inform the other in writing (without any obligation to reveal details which
would be confidential information), at least as frequently as once a year in
January of each calendar year, if any significant improvements or
modifications (other than as specifically described in Section 7.2(a)) have
been made relating to the subject matter of this Agreement, and as to the
general nature of any such improvements and modifications.

     (d) Notwithstanding the foregoing, LICENSOR may, but shall not be
required to, voluntarily and without additional cost to LICENSEE disclose
certain information relating to future improvements and modifications and
license to LICENSEE rights in such certain future improvements and
modifications, and  any information so disclosed will be considered Technical
Information which LICENSEE shall be obligated to keep confidential
pursuant to Section 12.1 of this Agreement.  In connection therewith,
LICENSOR, may voluntarily add patents and/or patent applications to
Schedule A hereof.  No disclosure of any information by LICENSOR shall
in any way establish a course of dealing or otherwise require LICENSOR to
make any future disclosure of information under this Agreement.

     7.3  Foreign Patent Applications.  During the term of this Agreement,
LICENSEE shall have the right to designate that any patent application now
or hereafter listed on or incorporated into Schedule A shall be filed or
maintained in any foreign country. If so designated and if legally possible to
do so, LICENSOR agrees to promptly file, prosecute and maintain such
applications and resulting patents, and LICENSEE shall pay to LICENSOR
the complete cost, including reasonable attorney's fees, to file, prosecute and
maintain any such patent application and resulting patents specifically so
designated by LICENSEE.

8    TECHNOLOGY TRANSFER.

     8.1.  Documentation. Within thirty calendar days after the Effective Date
of this Agreement, LICENSOR shall furnish LICENSEE with all Technical
Information owned or controlled by LICENSOR, which is reasonably
necessary or desirable in order for LICENSEE to manufacture SPD
Emulsions.  Such Technical Information, which relates to experimental
products, shall include, without limitation thereto (1) a document entitled
Handbook of Technical Information Relating to Variable Density Optical
Devices Incorporating an Activatable Material which contains confidential
and proprietary information of LICENSOR relating to the materials,
specifications, formulation, manufacturing method and manufacturing
equipment relating to SPD emulsions and Light Valve Film and (2)
photocopies of all U.S. Patents and patent applications relating to SPD
Emulsions owned or controlled by LICENSOR as of the Effective Date of this
Agreement or hereafter incorporated into Schedule A hereto pursuant to the
terms of this Agreement. LICENSOR shall not be obligated hereunder to
furnish copies of LICENSOR's foreign patents and patent applications, but
will furnish a list thereof in Schedule A hereto.

     8.2   Training.  LICENSEE's technically skilled personnel designated by
LICENSEE (with travel and living expenses paid by LICENSEE) shall make
one or more visits for training relating to the manufacture of SPD Emulsions
and Light Valve Film, and to inspect LICENSOR's research and development
facilities relating to SPD Emulsions.  The visits of employees of LICENSEE
to LICENSOR's facility shall be carried out within the six-month period
commencing with the Effective Date of this Agreement, and shall not exceed
200 man-hours during such period. To assist LICENSEE's employees while
they are at LICENSOR's facility, LICENSOR's technical staff shall provide
up to 200 man-hours assistance during such period at no cost to LICENSEE.
Additionally, there shall be no cost to LICENSEE for materials used for
training during the initial training at LICENSOR's facility.

     8.3 Materials and Additional Training.  Upon request by LICENSEE
during the term of this Agreement, when mutually convenient to LICENSOR
and LICENSEE, LICENSOR shall supply LICENSEE with additional
training in LICENSOR's or LICENSEE's facility and with small quantities
of materials related to SPD Emulsions for experimental use only by
LICENSEE, and shall charge LICENSEE $750 per man/day plus the cost of
any other materials used in providing such training or making such materials,
plus the cost of shipping such materials to LICENSEE.  The respective
number of engineers for dispatch and the duration of their stay shall be agreed
to by LICENSOR and LICENSEE separately from time to time.  All expenses
to be incurred in connection with the dispatch of LICENSOR's engineers
under this Section 8.3 including the traveling and living expenses of such
engineers of LICENSOR shall be borne and paid by LICENSEE.  Each
invoice submitted by LICENSOR for such service shall include detailed
explanations of the charges, and, if requested by LICENSEE, copies of
receipts.

     8.4 Inquiries. LICENSEE and LICENSOR may also at any time during
the term of this Agreement make reasonable inquiry by telephone, facsimile
or mail to one another in regard to any information or data furnished by
LICENSOR to LICENSEE pursuant to this Agreement.

    8.5 Visits. During all visits by either party to the facilities of the other
party, visitors shall comply with all reasonable rules of the host company, and
each party to this Agreement will indemnify and hold the other party harmless
from any liability, claim or loss whatsoever (i) for any injury to,or, death of,
any of its employees or agents while such persons are present at the facility
of the other party; and (ii) for any damages to its own property or to the
property of any such employee or agent which may occur during the presence
of any such person at the facility of the other party, regardless of how such
damage occurs, if the rules of the host are followed.

     8.6  Sole Purpose.  Any documentation or information supplied pursuant
to this Agreement by either party to the other shall be used solely for the
purposes set forth in this Agreement.

9    INTELLECTUAL PROPERTY PROTECTION RESPONSIBILITIES.

     9.1  Proprietary Rights: Notices.  Each party shall provide appropriate
notices of patents, or other similar notice of the patent rights of the other
party on all products utilizing the patented inventions of the other party if
patent marking is required by law or to protect a party's intellectual
property rights. Either party may add its own patent notice to any copy or
embodiment which contains its patented inventions.

     9.2  LICENSOR Exclusive Owner.  LICENSEE hereby acknowledges
LICENSOR as purporting to be the sole and exclusive owner of the patents
and patent applications listed on Schedule A, and that, except for the rights
granted hereunder, LICENSEE shall not have any rights or attempt to assert
any ownership rights in and to those patents and patent applications.

10   TERM AND TERMINATION.

     10.1  Term.  The term of this Agreement shall extend from the Effective
Date of this Agreement to the date of termination of this Agreement.  Unless
sooner terminated or extended, as herein provided for below, this Agreement
shall terminate upon  the expiration of the later of (A) the last to expire of
the patents now or hereafter listed in Schedule A hereof, and (B) the expiration
of the period in which LICENSEE is obligated to maintain confidential
Technical Information of LICENSOR pursuant to Section 12.1 hereof.

     10.2  Termination by LICENSEE. LICENSEE may terminate this
Agreement effective as of December 31, 2003 or as of any anniversary thereof
by giving LICENSOR prior notice thereof unless sooner terminated as
hereinafter provided.  Such notice shall be made in writing and shall be given
between 60 and 90 days prior to the effective date for which such termination
is to be effective. If LICENSEE decides to terminate this Agreement for any
reason, LICENSEE shall provide LICENSOR, along with the aforementioned
notice of termination, with a written report describing the reasons for such
termination.  After  the expiration or termination of this Agreement,
LICENSEE shall have no right to sell, and no obligation to manufacture and
deliver, SPD Emulsions and Light Valve Film to any Authorized User or to
any other party.

     10.3  Termination by LICENSOR. LICENSOR may  terminate this
Agreement at any time upon at least 30 days' notice if LICENSEE shall at any
time breach any material term of this Agreement and such breach is not cured
within any applicable cure period specified in Article 11 of this Agreement,
repeatedly provide inaccurate reports hereunder, or if there has been a
cessation by LICENSEE of general operations or of work related to SPD
Emulsions.

     10.4  Effect of Termination.  If this Agreement expires or is terminated
for any reason whatsoever, in addition to any other remedies which one party
may have against the other: (1) all of LICENSEE's rights and licenses under
this Agreement shall cease, and LICENSEE shall immediately return to
LICENSOR all Technical Information furnished to LICENSEE under this
Agreement, together with all reproductions, copies and summaries thereof;
provided, however, that LICENSEE may retain solely for archival purposes
one copy of all such documents in its legal department files, (2) at
LICENSOR's option, LICENSEE shall, within 30 days of the date of such
termination, either (A) sell and deliver to LICENSOR under the terms
specified in Section 4.2 any SPD Emulsions which shall then be in the
possession of LICENSEE, and, if requested by LICENSOR, LICENSEE shall
finish and deliver to LICENSOR any SPD Emulsions in the process of
manufacture as soon as possible and, in any case, not later than 30 days after
receiving LICENSOR's request, and/or (B) with respect to any unsold
inventory and work in the process of manufacture, to complete such work in
process and sell any remaining inventory during the period not to exceed six
months from the date of termination or expiration of this Agreement provided
that at the completion of such six-month period, LICENSEE shall promptly
destroy and dispose of any SPD Emulsions (and SPD Emulsions in the
process of manufacture) not sold under this Section 10.4 and (3) if this
Agreement is terminated for any reason on or before December 31, 2002,
LICENSEE hereby grants to LICENSOR a nonexclusive, royalty-free,
irrevocable, worldwide license with the right to grant sublicenses to others to
utilize all technical information, improvements and/or modifications  (whether
or not the subject of patents or pending patent applications) developed or
invented by or on behalf of LICENSEE and/or its sublicensees,
subcontractors, or agents hereunder through the date of such termination of
this Agreement relating to Light Valves, Light Valve Film or SPD Emulsions
which relate to or arise out of Technical Information disclosed by LICENSEE
to LICENSOR, and upon such termination, LICENSEE shall provide
LICENSOR in reasonable detail complete information regarding such
technical information, improvements and/or modifications.  The foregoing
license shall be self-effectuating, but LICENSEE agrees upon written notice
by LICENSOR at any time hereafter to deliver to LICENSOR within 30 days
of such notice any document or other instrument reasonably requested by
LICENSOR to convey such license rights to LICENSOR such as, by way of
example, confirmations or instruments of conveyance or assignment.  No
termination of this Agreement by expiration or otherwise shall release
LICENSEE or LICENSOR from any of its continuing obligations hereunder,
if any, or limit, in any way any other remedy one party may have against the
other party.  Notwithstanding the foregoing, LICENSEE's obligations to
LICENSOR under Sections 3.1, 3.2, 4.6, 6.1, 6.2, 7.2, 8.5, 10.2, 10.4, 12.1,
and Articles 13 and 14 shall survive any termination or expiration of this
Agreement.

11   EVENTS OF DEFAULT AND REMEDIES.

     11.1  Events of Default.  Each of the following events shall constitute
an "Event of Default" under this Agreement:

     11.1.1    (a) A party's material breach or material failure to punctually
perform any of its duties and obligations under this Agreement, which
material breach or failure, if curable, remains uncured for thirty (30) days
after written notice of such breach or failure is received by the breaching
party; or (b) a material misrepresentation is made by a party in any
representation or warranty contained in this Agreement and the
misrepresented facts or circumstances, if curable, remain uncured thirty (30)
days after written notice of such misrepresentation is received by the
breaching party; and, in either case, if such breach or misrepresentation is not
curable, termination shall occur thirty (30) days after such misrepresentation
or breach at the option of the non-breaching party; or

     11.1.2    The failure by a party upon request to provide the other party
with adequate assurances of its performance of all obligations under this
Agreement upon: (a) such first party's filing of a voluntary petition in
bankruptcy; (b) the filing of any involuntary petition to have such first party
declared bankrupt which has not been dismissed within ninety (90) days of its
filing; (c) the appointment of a receiver or trustee for such first party which
has not been rescinded within ninety (90) days of the date of such
appointment; or (d) such first party otherwise becoming insolvent or
otherwise making an assignment for the benefit of creditors.

     11.2  Default by a Party.  If there occurs an Event of Default with
respect to a party, the other party may:

     (a)  seek damages; and/or

     (b)  seek an injunction or an order for mandatory or specific
performance; and/or

     (c)  terminate this Agreement and the licenses granted to LICENSEE
          hereunder whereupon the non-defaulting party shall have no
          further obligations under this Agreement except those which
          expressly survive termination.

12   CONFIDENTIALITY.

     12.1  Confidential Information. (a) LICENSEE agrees for itself, its
sublicensees, and their employees and agents that for twenty (20) years from
the date of its receipt of information disclosed to LICENSEE by LICENSOR
pursuant to this Agreement, such information shall be held in confidence;
provided, however, there shall be no obligation to treat as confidential
information which is or becomes available to the public other than through a
breach of this obligation, or which was already possessed by LICENSEE in
writing (or otherwise provable to be in the possession of LICENSEE) prior
to the Effective Date of this Agreement or which is shown by LICENSEE to
have been received by it from a third party who had the legal right to so
disclose it without restrictions and without breach of any agreement with
LICENSOR or its licensees. The burden of proving the availability of any
exception of confidentiality shall be on the LICENSEE. LICENSOR shall
affix an appropriate legend on all written documentation given to LICENSEE
which contains confidential information.  Other than for the oral information
conveyed during the training conducted pursuant to Sections 8.2 and 8.3
hereof all of which shall be deemed to be confidential information, if
confidential information is otherwise conveyed orally by LICENSOR after
training has been completed, LICENSOR shall specify to LICENSEE at the
time such information is being conveyed (or in a subsequent letter referring
to the conversation) that the information conveyed is confidential.  It is
understood and agreed that, unless otherwise provided in a separate agreement
between LICENSEE and LICENSOR, LICENSEE has no obligation
hereunder to provide LICENSOR with any confidential or proprietary
information, and that LICENSOR shall have no obligation hereunder to
LICENSEE to maintain in confidence or refrain from commercial or other use
of any information which LICENSOR is or becomes aware of under this
Agreement.  The terms and provisions of this Agreement or any other
agreement between the parties shall not be considered confidential, and the
parties hereto acknowledge that, pursuant to the Securities Exchange Act of
1934, as amended, and the regulations promulgated thereunder,  LICENSOR
may file copies of this Agreement with the Securities and Exchange
Commission and with NASDAQ and with any other stock exchange on which
LICENSOR's securities may be listed.  LICENSEE agrees that for the period
of time during which LICENSEE is obligated to keep Technical Information
confidential hereunder, LICENSEE will not make, use, sell, lease or
otherwise dispose of products using or directly or indirectly derived from
Light Valve Film, SPD Emulsions or Light Valves or which otherwise
comprise suspended particles, which when subjected to a suitable electric or
magnetic field, orient to produce a change in the optical characteristics of the
suspension ("SPD Technology") unless an agreement between LICENSOR
and LICENSEE permitting it to do so is in full force and effect and the
royalties, if any, provided in such agreement are being paid to LICENSOR on
such products.  The foregoing restriction shall not apply to products (i) which
do not directly or indirectly incorporate SPD Technology, such as, but not
limited to, liquid crystal devices, or electrochromic devices, or (ii) which
incorporate technology involving suspended particles, which when subjected
to a suitable electric or magnetic field, orient to produce a change in the
optical characteristics of the suspension but which is independently developed
and which is not in any way directly or indirectly derived from any Technical
Information of LICENSOR or its licensees, sublicensees, or any of their
affiliates. LICENSEE shall have the burden of proving by clear and
convincing evidence that the foregoing restrictions do not apply to a particular
product.  Nothing contained in this section, however, shall be construed as
granting LICENSEE any rights or licenses with respect to any Technical
Information or patents of LICENSOR or its other licensees or their
sublicensees.

     (b) LICENSEE will have the right to disclose Technical Information of
LICENSOR to a subcontractor; provided, however, that LICENSEE shall only
disclose such Technical Information as is strictly necessary to enable said
subcontractor to perform its manufacturing task, and provided that prior to
disclosing any Technical Information to said subcontractor, said subcontractor
has signed a secrecy agreement with LICENSEE at least as protective of
LICENSOR's Technical Information as the provisions of this Agreement,
including, without limitation, said subcontractor's specific agreement to be
bound by the provisions of Section 12.1 hereof to the same extent as
LICENSEE.  For such purposes, LICENSEE may develop a standard form of
secrecy agreement for LICENSOR's approval, after which LICENSEE may
use such secrecy agreement with all subcontractors without LICENSOR's
prior approval of the secrecy agreement being necessary. LICENSEE shall
have all subcontractors sign said secrecy agreement prior to the disclosure of
Technical Information to said subcontractor, and LICENSEE shall send
LICENSOR a copy of every such secrecy agreement within thirty (30) days
after the execution thereof.

13   WARRANTIES AND REPRESENTATIONS.

     13.1  Reciprocal Representations.  Each party represents and warrants
to the other that:

     13.1.1  Valid Agreement.  The execution and delivery of this Agreement
by the officer or representative so doing, and the consummation of the
transactions contemplated hereby, have been duly authorized by all necessary
corporate action by LICENSOR and LICENSEE and this Agreement is a
valid and binding obligation enforceable against the parties in accordance
with its terms, except to the extent limited by bankruptcy, insolvency,
moratorium and other laws of general application relating to general equitable
principles;

     13.1.2 No Conflicts.  Nothing herein conflicts with its rights and
obligations pursuant to any agreement by a party and any other entity; and

     13.1.3  Publicity. The parties shall have the right to use non-confidential
information, including but not limited to information concerning this
Agreement, for marketing, sales, technical assistance, investor relations,
disclosure and public relations purposes, and that information permitted to be
disclosed by a party under this Section 13.1.3 may appear on such party's (or
its subsidiaries') Internet web site, along with links to the Internet web sites
of the other party and its subsidiaries.

     13.2  LICENSOR Representations.  LICENSOR represents and
warrants, for the benefit of LICENSEE, that:

     13.2.1  Title.  As of the date hereof, LICENSOR represents and warrants
that  it has the right to convey the rights and licenses granted by this
Agreement, and otherwise to perform its obligations under this Agreement.
LICENSOR has caused its employees who are employed to do research,
development, or other inventive work to disclose to it any invention or
information within the scope of this Agreement and to assign to it rights in
such inventions and information in order that LICENSEE shall receive, by
virtue of this Agreement, the licenses granted to it under Section 2.1 hereof.

     13.2.2  Infringement.  As of the date hereof, LICENSOR is not aware
of any claim for patent infringement or the misappropriation of trade secrets,
being asserted against it by any third party; or of any infringement of the
patents listed on Schedule A hereto by any entity.

     13.2.3 Patents in Force.  To the best of LICENSOR's knowledge, all of
the patents listed on Schedule A hereto are currently in force.

     13.3 No Warranty.  LICENSOR and LICENSEE make no guaranty or
warranty to one another under this Agreement (a) that LICENSEE will be
able to develop, manufacture, sell or otherwise commercialize SPD
Emulsions, or (b) as to the validity of any patent.

     13.4 Representation.  LICENSOR hereby represents and warrants that,
as of the Effective Date hereof,  to the best of its knowledge there have been
no claims, actions or proceedings brought or threatened against it or its
licensees alleging that any SPD Emulsions, Light Valve Film, and Light
Valves manufactured using Technical Information or other technical
information disclosed by LICENSOR constitutes infringement of any patent
or intellectual property right of any third party, nor is LICENSOR aware of
any patent or intellectual property right of any third party which would be
infringed by LICENSEE's manufacture, use or sale of SPD Emulsions or
Light Valve Film if LICENSEE's manufacture, use or sale of  SPD Emulsions
or Light Valve Film is done in strict compliance with the terms and conditions
of this Agreement and only uses Technical Information disclosed by
LICENSOR hereunder.

14    MISCELLANEOUS.

     14.1  Applicable Law.  This Agreement shall be interpreted, construed,
governed and enforced in accordance with and governed by the laws of the
State of New York, and LICENSOR and LICENSEE hereby submit to the
exclusive jurisdiction of the state or federal courts located in the County of
Nassau and State of New York for such purposes.  Should any dispute arise
between LICENSOR and LICENSEE in connection with this Agreement,
LICENSOR and LICENSEE shall first endeavor to settle such dispute in an
amicable manner through mutual consultation.

     14.2  Confidentiality In Court Proceeding.  In order to protect and
preserve the confidential information of a party which the parties recognize
may be exchanged pursuant to the provisions of this Agreement, the
disclosing party may request, and the receiving party shall not oppose, the
court in any action relating to this Agreement to enter a protective order to
protect information which is confidential information under Section 12.1 and
to seal the record in the action or to hold the proceedings, or portion of the
proceedings, in camera; provided, that the requested terms do not prejudice
the receiving party's interests.  Nothing, however, shall preclude either party
from thereafter moving to unseal its own records or to have matter and
information designated as confidential under any relevant protective order
designated otherwise in accordance with the circumstances as they shall
appear at that time.

     14.3  Severability.  If any provision of this Agreement is declared or
found to be illegal, unenforceable or void, the parties shall negotiate in good
faith to agree upon a substitute provision that is legal and enforceable and is
as nearly as possible consistent with the intentions underlying the original
provision.  If the remainder of this Agreement is not materially affected by
such declaration or finding and is capable of substantial performance, then the
remainder shall be enforced to the extent permitted by law.

     14.4  Waiver.  Unless agreed to by the parties in writing to the contrary,
the failure of either party to insist in any one or more instances upon the
strict performance of any one or more of the provisions of this Agreement, or to
exercise any right contained in this Agreement or provided by law, shall not
constitute or be construed as a waiver or relinquishment of the performance
of such provision or right or the right subsequently to demand such strict
performance or exercise of such right, and the rights and obligations of the
parties shall continue unchanged and remain in full force and effect.

     14.5  Captions.  The captions and headings in this Agreement are
inserted for convenience and reference only and in no way define or limit the
scope or content of this Agreement and shall not affect the interpretation of
its provisions.

     14.6  Assignment. This Agreement shall be binding on and shall inure
to the benefit of the parties and their successors and assigns.  However,
LICENSEE agrees that it shall not assign this Agreement or its rights
hereunder without the prior written consent of LICENSOR except to a
successor to substantially all of its business relating to Light Valves and
whose obligations hereunder are guaranteed to LICENSOR by LICENSEE.
LICENSOR may assign all of its rights and obligations hereunder to any
successor to any of its business interests or to any company controlling or
controlled by LICENSOR. All assignees shall expressly assume in writing the
performance of all the terms and conditions of this Agreement to be
performed by the assigning party, and an originally signed instrument of such
assumption and assignment shall be delivered to the non-assigning party
within 30 days of the execution of such instrument.

     14.7  Schedules.  All Schedules attached to this Agreement shall be
deemed to be a part of this Agreement as if set forth fully in this Agreement.

     14.8  Entire Agreement.  This Agreement constitutes the entire
understanding and agreement between LICENSOR and LICENSEE with
respect to the subject matter hereof, supersedes all prior agreements,
proposals, understandings, letters of intent, negotiations and discussions with
respect to the subject matter hereof and can be modified, amended,
supplemented or changed only by an agreement in writing which makes
specific reference to this Agreement and which is executed in writing by the
parties; provided, however, that either party may unilaterally waive in writing
any provision imposing an obligation on the other.

     14.9  Notices.  Any notice required or permitted to be given or made in
this Agreement shall be in writing and shall be deemed given on the earliest
of (i) actual receipt, irrespective of method of delivery, (ii) on the delivery
day following dispatch if sent by express mail (or similar next day courier
service), or (iii) on the sixth day after mailing by registered or certified air
mail, return receipt requested, postage prepaid and addressed as follows:

LICENSOR: Robert L. Saxe, President
          Research Frontiers Incorporated
          240 Crossways Park Drive
          Woodbury, New York 11797-2033 USA
          Facsimile:     (516) 364-3798
          Telephone:     (516) 364-1902

LICENSEE: Eiji Omori,
          Department Manager of Marketing and Planning Dept.
          Chemical Products Operating Division
          Hitachi Chemical Co., Ltd.
          9-25, Shibaura 4-chome
          Minato-ku, Tokyo JAPAN 108-0023
          Facsimile:     3-5446-9469
          Telephone:     3-5446-9132

or to such substitute addresses and persons as a party may designate to the
other from time to time by written notice in accordance with this provision.

     14.10 Bankruptcy Code.  In the event that either party should file a
petition under the federal bankruptcy laws, or that an involuntary petition
shall be filed against such party, the parties intend that the non-filing party
shall be protected in the continued enjoyment of its rights hereunder to the
maximum feasible extent including, without limitation, if it so elects, the
protection conferred upon licensees under section 365(n) of Title 17 of the
U.S. Code.  Each party agrees that it will give the other party immediate
notice of the filing of any voluntary or involuntary petition under the federal
bankruptcy laws.

     14.11  Construction.  This Agreement and the exhibits hereto have been
drafted jointly by the parties and in the event of any ambiguities in the
language hereof, there shall no be inference drawn in favor or against either
party.

     14.12  Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, but all of which
shall constitute one and the same instrument.

     14.13 Status of the Parties.  The status of the parties under this
Agreement shall be solely that of independent contractors. No party shall have
the right to enter into any agreements on behalf of the other party nor shall it
represent to any person that it has such right or authority.

     The parties, through their duly authorized representatives, and intending
to be legally bound, have executed this Agreement, as of the date and year
first above written, whereupon it became effective in accordance with its
terms.

                         RESEARCH FRONTIERS INCORPORATED


                         By: /s/ Robert L. Saxe
                             Robert L. Saxe, President
                             Date: August 9, 1999

                         HITACHI CHEMICAL CO., LTD.


                         By: /s/ Takeo Fujisawa
                             Takeo Fujisawa, Director, General Manager of
                             Chemical Products Operations Division
                             Date: August 3, 1999

                                                  Schedule A
                                            (As of July 22, 1999)

                                         LIST OF UNITED STATES AND
                                                FOREIGN PATENTS
                                          AND PATENT APPLICATIONS

                                                       Date    Expiration
Patents in the United States                           Issued  Date


4,407,565                Robert L. Saxe
                "Light Valve Suspension Containing
                       Fluorocarbon Liquid"          10/04/83  1/16/01

4,422,963                Robert I. Thompson et al
                "Improved Light Polarizing Materials
                      and Suspension Thereof"        12/27/83 12/27/00

4,772,103                Robert L. Saxe
                "Light Valve Containing an Improved
                  Suspension, and Liquids Therefor"   9/20/88   8/8/06

4,877,313                Robert L. Saxe et al
                "Light Polarizing Materials and
                 Suspensions Thereof" (QA)           10/31/89  2/10/09

5,002,701                Robert L. Saxe
                "Light Polarizing Materials and
                  Suspensions Thereof"                3/26/91  10/27/09

5,093,041                Joseph A. Check, III et al
                "Light-Polarizing Material Based on
        Ethylene-diamine Polyacetic Acid Derivatives" 3/03/92   7/30/10

5,111,331                Paul Rosenberg
              "Electro-Optical Light Modulator"       5/05/92    7/5/09

5,130,057                Robert L. Saxe
              "Light Polarizing Materials and
                  Suspensions Thereof"                7/14/92   10/31/06

5,279,773                Robert L. Saxe
              "Light Valve Incorporating A Suspension
                   Stabilized With A Block Polymer"   1/18/94   3/23/12

5,325,220                Robert L. Saxe
              "Light Valve With Low Emissivity
                Coating As Electrode" (JDR-105)       6/28/94    3/9/13

5,463,491                Joseph A. Check III
              "Light Valve Employing a Film Comprising
                An Encapsulated Liquid Suspension And
               Method of Making Such Film" (JDR-101) 10/31/95  11/6/12

5,463,492                Joseph A. Check III
              "Light Modulating Film of Improved
                Clarity For A Light Valve" (JDR-102) 10/31/95  11/6/12

5,461,506                Joseph A. Check III et al
              "Light Valve Suspensions Containing A
                 Trimellitate Or Trimesate And Light
               Valves Containing The Same" (JDR-103) 10/24/95  5/11/13

5,467,217                Joseph A. Check III et al
              "Light Valve Suspensions and Films
                 Containing UV Absorbers and Light
               Valves Containing The Same" (JDR-104) 11/14/95  5/11/13

5,516,463                Joseph A. Check III et al
              "Method of Making Light Polarizing
                    Particles" (JDR-106)             05/14/96  07/08/14

5,650,872                Robert L. Saxe et al
              "Light Valve Containing Ultrafine Particles"
                  (JDR-108) [CIP of S.N. 351,665]    07/22/97

5,728,251                Joseph A.  Check, III
              "Light Modulating Film of Improved
           UV Stability For a Light Valve" (JDR-111) 03/17/98 09/27/15



                              PENDING APPLICATIONS

    Serial Number                                               Filing Date


 [Confidential Information Omitted and filed separately with the Securities and
Exchange Commission]

                                                  Schedule B
                                             (As of July __, 1999)

        LIST OF ELIGIBLE CUSTOMERS (AUTHORIZED USERS) FOR SPD EMULSIONS

                                                                       Permitted
Name of Customer                 Licensed Application                  Territory

Research Frontiers Incorporated  All applications                      Worldwide

General Electric Company         SPD Film for sale to other            Worldwide
                                 specified licensees of Research Frontiers

Hankuk Glass Industries Inc.     SPD Film for sale to other            Worldwide
                                 specified licensees of Research Frontiers

Material Sciences Corp.          SPD Film for sale to other            Worldwide
                                 specified licensees of Research Frontiers


[INFORMATION REGARDING OTHER AUTHORIZED USERS WILL BE PROVIDED BY LICENSOR TO
LICENSEE FROM TIME TO TIME IN THE FUTURE]