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 June 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 August 10,1999, there were outstanding 11,042,938 shares of
     Common Stock, par value $0.0001 per share.



                     RESEARCH FRONTIERS INCORPORATED

                             Balance Sheets

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

Current assets:
 Cash  and cash equivalents                        $     4,003,434   5,403,283
 Marketable investment securities-held-to-maturity       1,215,795   1,189,386
 Accrued interest and dividends receivable                   3,318       3,071
 Royalty receivable                                         50,000          --
 Prepaid expenses and other current assets                 206,376     132,713
      Total current assets                               5,478,923   6,728,453

Fixed assets, net                                          244,470     269,084
Deposits and other assets                                   23,754      23,754

      Total assets                            $          5,747,147   7,021,291

     Liabilities and Shareholders' Equity

Current liabilities:
 Accounts payable                                           83,545     115,418
 Deferred revenue                                           25,000      56,250
 Accrued expenses                                          108,787     109,134

       Total liabilities                                   217,332     280,802

Shareholders' equity:
 Capital stock, par value $0.0001 per share;
  authorized 100,000,000 shares, issued and
  outstanding 10,995,680 shares and 10,929,041 shares        1,100       1,093
 Additional paid-in capital                             34,457,825  33,982,066
 Accumulated deficit                                   (28,044,149)(26,357,709)
                                                         6,414,776   7,625,450

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

       Total shareholders' equity                        5,529,815   6,740,489

       Total liabilities and shareholders' equity   $    5,747,147   7,021,291

See accompanying notes to financial statements




                     RESEARCH FRONTIERS INCORPORATED

                        Statements of Operations

                               (Unaudited)


                                  Six months ended         Three months ended

                            June 30,1999 June 30,1998  June 30,1999 June 30,1998

Fee income               $       91,250       50,000   $    40,625           --

Operating expenses              801,973      878,042       425,934      421,720

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

Research and development        812,638      847,067       381,800      333,273

                              1,903,788    1,725,109     1,096,911      754,993

         Operating loss      (1,812,538)  (1,675,109)   (1,056,286)    (754,993)

Net investment income           126,098      210,801        59,671       99,494

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

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

Net loss                   $ (1,686,440)  (1,365,329)    $(996,615)    (556,520)

Basic and diluted net loss
  per common share         $       (.15)        (.13)    $    (.09)        (.05)

Weighted average number of
 common shares outstanding   10,949,096   10,765,498    10,957,549   10,888,517




  See accompanying notes to financial statements.



                    RESEARCH FRONTIERS INCORPORATED
                       Statements of Cash Flows
                              (Unaudited)
                                                            Six months ended
                                                       June 30,1999 June 30,1998

Cash flows from operating activities:
 Net loss                                            $  (1,686,440)  (1,365,329)
 Adjustments to reconcile net loss to net cash
   used in operating activities:
     Depreciation and amortization                          40,341       59,480
     Expense relating to issuance of warrants
       for services performed                                4,584       27,058
     Cashless exercise of warrants                          21,820           --
     Changes in assets and liabilities:
       Royalty receivable                                  (50,000)     (50,000)
       Accrued interest and dividends receivable              (247)      20,084
       Prepaid expenses and other current assets           (73,663)    (118,533)
       Deposits and other assets                                --       53,621
       Deferred revenue                                    (31,250)          --
       Accounts payable & accrued expenses                 (32,220)    (198,164)

       Net cash used in operating activities            (1,807,075)  (1,571,783)

Cash flows from investing activities:
 Proceeds from maturity of treasury securities           1,189,386    7,499,185
 Purchases of treasury securities                       (1,215,795)  (4,586,329)
 Purchases of fixed assets                                 (15,727)     (49,571)

Net cash provided by (used in) investing activities        (42,136)   2,863,285

Cash flows from financing activities:
 Net proceeds from issuances of common stock               614,837      158,000
 Repayment of loans to officers                                 --       30,000
 Purchase of treasury stock                               (165,475)     (18,674)

      Net cash provided by financing activities            449,362      169,326

Net increase (decrease) in cash and cash equivalents    (1,399,849)   1,460,828

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

Cash and cash equivalents at end of period             $ 4,003,434    3,618,515



See accompanying notes to financial statements.

                RESEARCH FRONTIERS INCORPORATED
                 Notes to Financial Statements
                         June 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 six-month period ended June 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
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.

Shareholder's Equity

Issuance of Common Stock
For the six months ended June 30, 1999, the Company received $614,837
of net cash proceeds from the issuance of 85,289 shares of common stock
from the exercise of warrants.  In addition, 2,850 shares were issued
through the cancellation of 33,250 warrants, resulting in public relations
expense of $21,820.

For the six months ended June 30, 1998, the Company received $158,000
of net cash proceeds from the issuance of 3,000 shares of common stock
issued upon the exercise of options resulting in net proceeds of $18,000
and 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 598,768 shares of common stock pursuant to the exercise of a
redeemable prepaid warrant during the six months ended June 30, 1998.

Treasury Stock
For the six months ended June 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 six months ended June 30, 1998,
the Company purchased in the open market and subsequently retired 3,000
shares of treasury stock with an aggregate cost of $18,674.

Issuance of Warrants
For the six months ended June 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
vested 10,000 shares per quarter commencing April 1, 1999.  The
Company recorded $4,584 of expense in connection with the issuance of
these warrants.

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 six months ended June 30, 1999 and
1998, comprehensive loss equaled the net loss of $1,686,440 and
$1,365,329, respectively.

Amendment to Stock Option Plan

At the Company's Annual Meeting of Stockholders held on June 10, 1999,
the Company's stockholders approved an amendment to the Company's
1998 Stock Option Plan increasing  the number of shares of common stock
which may be issued upon the exercise of options and other awards granted
under the 1998 Stock Option Plan by 545,000 shares.

Contingency

On March 25, 1999, the Company was served with a summons in an action
brought 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 are not available as collateral to secure such loans. In a
settlement agreement dated June 30, 1999, the Company settled this action.
Under the settlement agreement, among other things, the parties agreed that
Jean Thompson and the estate of Robert I. Thompson would pay off 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.

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

Results of Operations for the Six Month Periods Ended June 30, 1999 and 1998

The Company's fee income from licensing activities for the first six
months of 1999 was $91,250 as compared to fee income of $50,000 for the
first six months of 1998.

Operating expenses decreased by $76,069 for the first six months of 1999
to $801,973 from $878,042 for the first six 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 by $34,429 to $812,638
for the first six months of 1999 from $847,067 for the first six 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.

During the first half 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 six
months of 1999 was $126,098, as compared to a net gain from its investing
activities of $210,801 for the first six months of 1998.  This difference was
primarily due to a higher level of average investment balances in the first
half 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.

During the first six 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
six 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 $1,686,440 ($0.15 per share) for the first six months of 1999 as
compared to  $1,365,329 ($0.13 per share) for the first six months of 1998.

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

The Company earned $40,625 in fee income during the second quarter of
1999, as compared to no fee income for the second quarter of 1998.

Operating expenses increased by $4,214 for the second quarter of 1999 to
$425,934 from $421,720 for the second quarter of 1998.  This decrease
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 $48,527 to $381,800
for the second quarter of 1999 from $333,273 for the second 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.

During the second quarter 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 second quarter
of 1999 was $59,671, as compared to a net gain from its investing activities
of $99,494 for the second quarter of 1998.  This difference was primarily
due to a higher level of average investment balances during 1998 compared
to 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.

During the second quarter 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 second quarter
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 $996,615 ($0.09 per share) for the second quarter of 1999 as compared
to $556,520 ($0.05 per share) for the second quarter of 1998.

Financial Condition, Liquidity and Capital Resources

During the first six months of 1999, the Company's cash and cash
equivalent balance decreased by $1,399,849 principally as a result of cash
used to fund the Company's net loss of $1,686,440, changes in working
capital of $41,669, and the purchase of 21,500 shares of treasury stock for
$165,475 (which shares were subsequently retired), offset by the proceeds,
net of expenses, from the sale of common stock of $614,837 from the
exercise of  warrants, the proceeds of which have been invested by the
Company in short-term U.S. Treasury money market funds.  At June 30,
1999, the Company had working capital of $5,261,591 and its
shareholders' equity was $5,529,815.

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 off 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.

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 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 4. Submission of Matters to a Vote of Security-Holders

The Annual Meeting of Stockholders of Research Frontiers Incorporated
was held on June 10, 1999.  Listed below is a summary of how the
8,312,274 shares voted at the Annual Meeting on the various proposals
voted upon and adopted at the Annual Meeting. For the election of Robert
L. Saxe as a Class III member of the Company's Board of Directors,
8,160,227 shares were voted in favor of election, and 152,047 votes were
withheld. For the election of Robert M. Budin as a Class III member of the
Company's Board of Directors, 8,161,170 shares were voted in favor of
election, and 151,104 votes were withheld. For the ratification of the
appointment of KPMG LLP as auditors for the 1999 fiscal year, 8,259,180
shares were voted in favor of election, 28,024 shares were voted against,
and 25,070 shares abstained from voting. For the adoption of the
amendment to the Company's 1998 Stock Option Plan, 7,403,919 shares
were voted in favor of election, 789,161 shares were voted against, and
119,194 shares abstained from voting.

Item 5.     Other Information.

On June 11, 1999 Research Frontiers announced that it has purchased from
its licensee, Glaverbel, S.A., 74 patents and patent applications relating to
the Company's proprietary SPD light control technology. The patents and
patent applications specifically relate to automotive rear-view mirrors,
electronics for operating SPDs and improved methods of filling SPD cells
with liquid suspension, and provide coverage in most major industrial
nations of the world. In connection with the granting of a license to
Glaverbel in April 1996, Research Frontiers had obtained the option from
Glaverbel to purchase such patents and patent applications at or below
Glaverbel's reported out-of-pocket expenses incurred to prepare, file and
obtain such patents and patent applications. As a result of the purchase,
Research Frontiers' worldwide portfolio of SPD patents and patent
applications has been expanded from approximately 277 to 351.  The
Company believes that the acquisition of Glaverbel's SPD-related patents
will substantially strengthen the Company's already strong patent position
in SPD technology, and should benefit existing and future licensees for
automotive and other applications. One particularly important group of the
patents and patent applications purchased covers inventions relating to
SPD automotive rear-view mirrors.  Automatically self-dimmable rear-
view mirrors, which can protect a driver from the glare of a trailing car's
headlights, are a safety feature of growing importance in the automotive
industry.  The rear-view mirror inventions purchased from Glaverbel are
especially important because the U.S. Department of Transportation has
stated that the  system covered by these patents and patent applications
would be acceptable for multi-reflectance rear-view mirrors which are
normally dark in their unpowered or "off" states.

On June 29, 1999, Research Frontiers announced that Dainippon Ink and
Chemicals, Incorporated (DIC), the world's largest manufacturer of
organic pigments (with 1998 revenues of U.S. $7.7 billion), has been
granted a worldwide non-exclusive license to manufacture and sell to
Research Frontiers' authorized licensees, emulsions which will be used to
manufacture light-controlling film developed by Research Frontiers and its
licensees. The Company believes that this development is a key factor to
large-scale commercial production of smart windows and other light
control products, and that having one or more reliable sources of the
emulsion will simplify the work of the Company's film-making licensees,
and should greatly speed up the large-scale availability of SPD films and
products using such films. Currently, 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 benefit from this new agreement.  DIC reportedly
is one of Japan's most diversified chemical companies, and is the core of
the DIC Group which includes nearly 250 subsidiaries and affiliates in
Japan and more than 40 other countries of the world.  The DIC Group is
a global leader in markets for printing inks, organic pigments and resins.

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 off 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.

Also as of June 30, 1999, Sanyo Electric Co., Ltd.'s right to use the
Company's SPD technology in flat panel displays under Sanyo's 1995
license agreement with Research Frontiers was terminated.  Given Sanyo's
previously reported dormant status, management and structural changes
within Sanyo's LCD division, and the fact that Sanyo's license would not
have permitted them to use improvements made in SPD technology since
1995, Research Frontiers does not believe that the termination of this
license is material or would otherwise have an adverse impact on the
development of flat panel display products using the Company's
proprietary SPD technology.

Item 6.    Exhibits and Reports on Form 8-K

  (a)    Exhibits.

10.14  License Agreement effective as of June 25, 1999 between the
       Company and Dainippon Ink and Chemicals, Incorporated.
       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: August 10, 1999

[EXHIBIT 10.14- 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
             DAINIPPON  INK AND CHEMICALS, INCORPORATED

     This License Agreement ("Agreement") effective as of June 25, 1999
by and between RESEARCH FRONTIERS INCORPORATED, a Delaware
corporation ("LICENSOR") and DAINIPPON  INK AND CHEMICALS,
INCORPORATED, a corporation formed under the laws of 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; 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 SPD
Emulsions used to make  Light Valve Film (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.  LICENSEE agrees that LICENSOR
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.
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 the
type of SPD Emulsions that may be sold, leased or transferred to such person
or entity.  LICENSEE agrees that it and its permitted sublicensees hereunder
shall cease all sales, leases, or other dispositions of SPD Emulsions 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 is making any improper use of SPD Emulsions, 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 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 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 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.  By virtue of the disclosure of Technical Information and training
provided by LICENSOR under this Agreement, all SPD Emulsions 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 nothing contained in this Agreement shall
permit LICENSEE to make, sell, use or otherwise dispose of Light Valve
Film.

     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, 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) 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.  LICENSOR and LICENSEE
shall 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 changes in the size or other
specifications of the SPD Emulsions to be produced under this Agreement.
LICENSEE agrees to use all commercially reasonable efforts throughout the
term of this Agreement, including giving due consideration to the
implementation of reasonable processes, procedures or modifications
suggested by LICENSOR, 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.  Upon request of LICENSOR, LICENSEE
shall sell and deliver to LICENSOR, SPD Emulsions or components thereof
at  LICENSEE's prevailing market prices, or if there is no prevailing market
price, at a price equal to LICENSEE's direct manufacturing cost for the SPD
Emulsions or components thereof purchased by LICENSOR.  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 purposes only.
If a party which is not then listed on Schedule B hereto wishes to obtain
samples of SPD Emulsions or to purchase SPD Emulsions 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 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, 1999, and which relate in
any way to or are useful in the design, operation, manufacture and assembly
of SPD Emulsions, such improvements and modifications shall 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, and/or to the
suspensions or other components used or usable in SPD Emulsions 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 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 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 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 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.  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.
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.

     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,
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, 10.4, 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, and except with respect to royalty
payments due and owing to LICENSOR as of the termination date
or any subsequent period specified in Section 10.4.

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 are 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. 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.

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.

     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: Toshio Tanaka
          General Manager, R&D
          Pigments & Chemicals
          Technical Dept.
          Dainippon Ink and Chemicals, Incorporated
          18 Higashifukashiba
          Kamisu-Machi Kashima-Gun
          Ibaraki-Ken
          JAPAN
          Facsimile:     +81 (299) 93-8180
          Telephone:     +81 (299) 93-8152

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: June 25, 1999

DAINIPPON  INK AND CHEMICALS, INCORPORATED


By:/s/ Toshio Tanaka
       Toshio Tanaka, General Manager, R&D
       Pigments & Chemicals
       Technical Dept.
       Date:

                                   Schedule A
                             (As of June 15, 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 June 15, 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              Worldwide
                                   to Authorized Users

Hankuk Glass Industries Inc.       SPD Film for Sale              Worldwide
                                   to Authorized Users,
                                   and a broad range of
                                   SPD products including
                                   windows, flat panel
                                   displays, and automotive
                                   vehicle rear-view mirrors,
                                   sunvisors and sunroofs

Material Sciences Corp.            SPD Film for Sale              Worldwide
                                   to Authorized Users,
                                   and architectural and
                                   automotive windows

Vision-Ease Lens Azusa, Inc.       Eyewear                        Worldwide


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