ASSIGNMENT OF LEASE AND TEMINATION AND OPTION AGREEMENT

Exhibit 10.29

ASSIGNMENT

OF LEASE

AND

TEMINATION AND OPTION AGREEMENT

THIS ASIGNMENT OF LEASE AND TERMINATION AND OPTION AGREEMENT (this “Agreement”) is made this 30th day of December, 2005, by and between

LAUREATE PHARMA, INC., a Delaware corporation (“Assignor”), and DISCOVERY LABORATORIES, INC., a Delaware corporation (“Assignee”).

BACKGROUND

Assignor, as tenant, entered into a certain Agreement of Lease with Landlord, dated as of December 3, 2004, as amended by Amendment No. 1 to Lease between Landlord and Assignor (collectively, the “Lease”). Pursuant to the Lease, Tenant is occupying approximately 21,000 rentable square feet in the building located at 700 Union Boulevard, Totowa, New Jersey (the “Premises”), as more particularly described in the Lease, for a term currently expiring on December 3, 2014, unless sooner terminated pursuant to the terms of the Lease and the Termination And Option Agreement (as defined below). The Lease is hereby incorporated herein by this reference, and a copy of the Lease is attached hereto as Exhibit “A”.

In connection with the Lease, Assignor and Landlord have entered into a certain Termination and Option Agreement, dated December 3, 2004, as amended by Amendment No.1 to Termination And Option Agreement between Assignor and Landlord, dated the date hereof (collectively, the “Termination and Option Agreement”) pursuant to which Landlord is granted certain early termination option upon the payment to Assignor of certain early termination payments and Assignor is granted certain purchase options, as set forth more fully set forth in the Termination and Option Agreement.

Assignor, as seller, and Assignee, as buyer, entered into a certain Asset Purchase Agreement (the “APA Agreement”), pursuant to which Assignor agreed to sell and Buyer agreed to purchase certain assets more particularly described in the Agreement.

Pursuant to the APA Agreement, Assignor agreed to assign to Assignee all of Assignor’s right, title and interest in and to the Lease and the Termination and Option Agreement, and Assignee agreed to accept such assignment, on the terms and conditions more fully set forth herein.

Landlord has consented to the assignment of all of Assignor’s right, title and interest in and to the Lease and the Termination and Option Agreement, pursuant to that certain Consent to Assignment and Assumption, dated the date hereof between Landlord, Assignor and Assignee.

NOW, THEREFORE, Assignor and Assignee, in consideration of the mutual promises contained herein and in the Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, covenant and agree as follows:

1.         Assignment. Effective as of the Effective Date, Assignor hereby conveys, transfers, assigns and sets over unto Assignee all of Assignor’s right, title, interest and privilege as tenant in and to (i) the Lease and (ii) the Termination and Option Agreement, including, without limitation, the right to receive all Termination Payments (as defined therein) and the rights to exercise the Purchase Option (as defined therein) in accordance with the terms of the Termination and Option Agreement.

2.         Assumption. Effective as of the Effective Date, Assignee hereby accepts the foregoing assignment of the Termination and Option Agreement from Assignor, and Assignee assumes all of the liabilities and obligations of the tenant under (i) the Lease and (ii) the Termination and Option Agreement accruing on and after the Effective Date.

3.         Further Assurances. Assignor and Assignee agree to cooperate in good faith in completing the transactions described herein, including executing further instruments of assignment as reasonably necessary.

4.         Effective Date. Assignor and Assignee acknowledge that this Agreement shall only be effective on the earliest date (the “Effective Date”) when each of the following shall have been accomplished:

(a)         Assignor and Assignee shall have executed and delivered this Agreement;

(b)        Settlement shall have been completed under the Agreement;

(c)         Assignor and Assignee and Landlord shall have executed and delivered the Consent to Assignment and Assumption, in form and substance acceptable to Landlord, Assignor and Assignee in their reasonable discretion.

5.         Miscellaneous.

(a)         This Agreement and the APA Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof and may only be amended by an instrument in writing signed by the parties hereto. Neither the making nor the acceptance of this instrument shall enlarge, restrict or otherwise modify the terms of the APA Agreement or constitute a waiver or release by Seller or Buyer of any Liabilities, duties or obligations imposed upon either of them by the terms of the APA Agreement, including, without limitation, the representations and warranties and other provisions that the APA Agreement provides shall survive the Closing Date and the limitations on survival and remedies set forth in the APA Agreement.

(b)         This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns;

(c)         This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without giving effect to any choice of laws provisions which may direct the application of the laws of another jurisdiction; and

(d)         This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument.

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, under seal, the day and year first above written.

EXHIBIT A

Lease