An electro-optic modulator assembly includes a sensor layer made from an electro-optic modulator material that comprises liquid crystal droplets encapsulated within a polymer matrix. The sensor layer material comprises an interfacial agent, for example a defoaming agent, in an amount sufficient to lower an intrinsic operating voltage at which the sensor layer transmits light. The defoaming agent can comprise from about 1 to about 10 percent by weight of the electro-optic modulator material, and the defoaming agent may comprise a reactive component to react with the polymer matrix, for example at least one of a siloxane with a reactive end group, a reactive fluorinated polymer or a non-ionic block copolymer to react with the polymer matrix. The assembly can also include a hard coating layer to protect the sensor layer.