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

 

William J. Carden

 

 

/s/John N. Galardi

 

John N. Galardi

 

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