Guaranty and Assignment Agreement between CGS Real Estate Company, Inc. and American Spectrum Realty, Inc.
William J. Carden and John N. Galardi agree to guarantee a $270,375 payment owed by CGS Real Estate Company, Inc. to American Spectrum Realty, Inc. If CGS fails to pay, Carden and Galardi will cover the amount. As security for this guarantee, they assign their rights to receive $270,375 in principal payments, plus interest, from notes related to the settlement of the Teachout litigation. This agreement ensures American Spectrum Realty, Inc. will receive payment even if CGS defaults.
Exhibit 10.42
CGS Real Estate Company, Inc.
February 25, 2003
American Spectrum Realty, Inc.
7700 Irvine Center Drive
Irvine, CA 92618
Ladies and Gentlemen:
We hereby agree to guarantee the payment to you by CGS Real Estate Company, Inc. (“CGS”) of its $270,375 obligation to you, pursuant to your letter agreement of this date with CGS, in the event CGS fails to pay to you any amount due thereunder.
As security for our contingent guarantee obligation, we hereby assign to you our right to receive $270,375 of principal payments on the notes payable to us and our affiliates by reason of the settlement of the Teachout litigation, plus all interest payable on such principal amount of notes.
Sincerely yours,
| /s/ William J. Carden |
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| William J. Carden | |
| /s/John N. Galardi |
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| John N. Galardi | |
