Document:

EX-10.2

EXHIBIT 10.2 Securities Purchase Agreement between Fairford and the Company

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”), dated February 16, 2007, is entered by
and between CTI Group (Holdings) Inc., a Delaware corporation (the “Company”), and Fairford
Holdings Limited, a British Virgin Islands company (the “Purchaser”).

WHEREAS, the Purchaser secured the issuance of a $2.6 million letter of credit (the “Letter of
Credit”) from SEB to National City Bank, a national banking association (“National City Bank”),
with which the Company entered into the Loan Agreement (the “Loan Agreement”), dated as of
December 22, 2006, related to the $2.6 million acquisition loan (the “Acquisition Loan”) and $8.0
million revolving loan extended by the National City Bank to the Company;

WHEREAS, due to National City Bank’s receipt of the Letter of Credit, the Company was able to
obtain the Acquisition Loan at a favorable cash-backed interest rate; and

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), the Company desires
to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company,
securities of the Company as more fully described in this Agreement.

NOW, THEREFORE, intending to be legally bound hereby and in consideration for securing the
issuance of the Letter of Credit, the mutual covenants contained in this Agreement and for other
good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the
parties hereto, the Company and the Purchaser agree as follows:

ARTICLE I

DEFINITIONS

1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the
following terms have the meanings indicated in this Section 1.1:

“Affiliate” shall mean any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a Person, as such term
is used in and construed under Rule 144 under the Securities Act.

“Closing” shall mean the closing of the purchase and sale of the Securities pursuant
to Section 2.1.

“Closing Date” shall mean the Trading Day selected by the Company after all of the
conditions precedent to the Purchaser’s and the Company’s respective obligations set forth in
Section 2.3 have been satisfied or waived.

“Common Stock” shall mean Class A common stock of the Company, par value $0.01 per
share, and any securities into which such Class A common stock may hereinafter be reclassified
into.

“including” shall mean including, without limitation.

“Person” shall mean an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.

“Rule 144” shall mean Rule 144 promulgated by the SEC pursuant to the Securities Act,
as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC having substantially the same effect as such Rule.

“SEC” shall mean the U.S. Securities and Exchange Commission.

“Securities” shall mean the Warrant and the Warrant Shares issuable under the
Transaction Documents.

“Trading Day” shall mean a day during which trading in securities generally occurs on
an exchange or the OTC Bulletin Board on which shares of Common Stock are then listed or quoted, as
applicable.

“Transaction Documents” shall mean this Agreement, the Warrant and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

“Warrant” shall mean the Class A Common Stock Purchase Warrant in the form of
Exhibit A attached hereto delivered to the Purchaser at the Closing in accordance with
Section 2.2(a). The Warrant shall represent the right to purchase 419,495 shares of Common Stock
at an exercise price of $0.34 per share, subject to adjustment.

“Warrant Shares” shall mean the shares of Common Stock issuable upon the exercise of
the Warrant.

ARTICLE II

CLOSING

2.1 Closing. On the Closing Date, upon the terms and subject to the conditions set
forth herein, the Company agrees to sell, and the Purchaser agrees to purchase the Warrant. The
Company shall deliver to the Purchaser the Warrant and the other items set forth in Section 2.2(a)
at the Closing. Upon satisfaction of the conditions set forth in Section 2.2, the Closing shall
occur at the offices of the Company, or such other location as the parties shall mutually agree.

2.2 Deliveries.

(a) On the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser
the following:

(i) this Agreement duly executed by the Company;

(ii) the Warrant duly executed by the Company and registered in the name of the
Purchaser in the form of Exhibit A attached hereto; and

(iii) the consent of National City Bank provided pursuant to Section 7.5 of the Loan
Agreement.

(b) On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company
this Agreement duly executed by the Purchaser.

2.3 Closing Conditions.

(a) The obligations of the Company hereunder in connection with the Closing are subject to the
following conditions being met:

(i) the accuracy in all material respects when made and on the Closing Date (except
for representations and warranties made as of a specific date, which must be accurate in all
material respects as of such date) of the representations and warranties of the Purchaser contained
herein;

(ii) all obligations, covenants and agreements of the Purchaser required to be
performed at or prior to the Closing Date shall have been performed; and

(iii) the delivery by the Purchaser of the items set forth in Section 2.2(b) of this
Agreement.

(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to
the following conditions being met:

(i) the accuracy in all material respects when made and on the Closing Date (except
for representations and warranties made as of a specific date, which must be accurate in all
material respects as of such date) of the representations and warranties of the Company contained
herein;

(ii) all obligations, covenants and agreements of the Company required to be
performed at or prior to the Closing Date shall have been performed; and

(iii) the delivery by the Company of the items set forth in Section 2.2(a) of this
Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

3.1 Representations and Warranties of the Company. The Company hereby represents and
warrants as of the date hereof to the Purchaser as follows:

(a) Organization and Authority. The Company is an entity duly incorporated and in
good standing under the laws of the jurisdiction of its incorporation with the requisite power and
authority to enter into, and to consummate the transactions contemplated by, the Transaction
Documents and otherwise to carry out its obligations thereunder.

(b) Enforcement. The execution, delivery and performance of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary corporate action on the part of the Company and no further action is
required by the Company in connection therewith. This Agreement constitutes the valid and legally
binding obligation of the Company enforceable against the Company in accordance with its terms.

3.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents
and warrants as of the date hereof to the Company as follows:

(a) Organization and Authority. The Purchaser is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization with the
requisite power and authority to enter into, and to consummate the transactions contemplated by,
the Transaction Documents and otherwise to carry out its obligations thereunder.

(b) Enforcement. The execution, delivery and performance of the Transaction Documents
by the Purchaser and the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary corporate or similar action on the part of the Purchaser and no further
action is required by the Purchaser in connection therewith. This Agreement constitutes the valid
and legally binding obligation of the Purchaser enforceable against the Purchaser in accordance
with its terms.

(c) Purchaser Representation. The Purchaser understands that the Securities are
“restricted securities” and have not been registered under the Securities Act or any applicable
state securities law and is acquiring the Securities as principal for its own account for
investment and not with a view to, or for sale in connection with, any distribution of such
Securities or any part thereof, has no present intention of distributing any of such Securities and
has no arrangement or understanding with any other persons regarding the distribution of such
Securities (this representation and warranty does not limit the Purchaser’s right to sell the
Securities in compliance with applicable federal and state securities laws). The Purchaser does
not have any agreement or understanding, directly or indirectly, with any Person to distribute any
of the Securities.

(d) Experience of the Purchaser. The Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business and financial
matters so as to be capable of evaluating the merits and risks of the prospective investment in the
Securities, and has so evaluated the merits and risks of such investment. The Purchaser is able to
bear the economic risk of an investment in the Securities, has no need for liquidity with respect
to its investment and is able to afford a complete loss of such investment.

(e) General Solicitation. The Purchaser is not purchasing the Securities as a result
of any advertisement, article, notice or other communication regarding the Securities published in
any newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or any other general solicitation or general advertisement.

(f) Purchaser Investigation. The Purchaser has had the opportunity to request and
receive all information deemed necessary by it to evaluate an investment in the Company. The
Purchaser confirms that the Company has made available to the Purchaser the opportunity to ask
questions of, and receive answers from the Company concerning the terms and conditions of the
Securities and the business of the Company, and to obtain additional information or documents which
the Company possesses or can acquire without unreasonable effort or expense. In formulating the
decision to acquire the Securities, the Purchaser has relied solely upon its own advisors and its
own independent investigation of the Company with respect to this Agreement and the nature and
effect of any investment in the Securities as well as the representations and warranties of the
Company in Section 3.1.

(g) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or
other Person with respect to the transactions contemplated by this Agreement based upon
arrangements made by the Purchaser or any of its Affiliates. The Company shall have no obligation
with respect to any fees or with respect to any claims made by or on behalf of any Person for fees
of a type contemplated in this Section that may be due in connection with the transactions
contemplated by this Agreement based upon arrangements made by the Purchaser or any of its
Affiliates.

(h) Exercise of the Warrant. As of the date hereof, and on each date on which the
Purchaser exercises the Warrant, the Purchaser’s representations and warranties in subsections
3.2(c) — (g) shall be accurate in all material respects.

The Company acknowledges and agrees that the Purchaser does not make or has not made any
representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in this Section 3.2.

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

4.1 Transfer Restrictions.

(a) The Securities may only be disposed of in compliance with state and federal securities
laws. In connection with any transfer of the Securities other than pursuant to an effective
registration statement, the Company may require the Purchaser to provide to the Company an opinion
of counsel selected by the Purchaser and reasonably acceptable to the Company, the form and
substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Securities under the Securities Act. As
a condition of transfer, any such transferee shall agree in writing to be bound by the terms of
this Agreement and shall have the rights and obligations of the Purchaser under this Agreement,
provided that the foregoing shall not apply to a transfer of the Securities pursuant to an
effective registration statement.

(b) The Purchaser agrees to the imprinting, so long as is required by applicable federal and
state securities laws, of a legend on any of the Securities in the following form:

With respect to certificates representing Warrant Shares:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION, OR THE SECURITIES COMMISSION OF ANY STATE, IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND APPLICABLE STATE SECURITIES LAWS. IN ADDITION, THESE SECURITIES MAY BE
DEEMED CONTROL SECURITIES WITHIN THE MEANING OF THE SECURITIES ACT.  THESE
SECURITIES MAY NOT BE OFFERED OR SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

With respect to the Warrant:

THE EXERCISE OF THIS WARRANT HAS NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THIS WARRANT MAY
ONLY BE EXERCISED PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND APPLICABLE STATE SECURITIES LAWS.
AS A CONDITION PRECEDENT TO THE EXERCISE OF THIS WARRANT, THE COMPANY MAY REQUIRE
SUCH CERTIFICATES AND OPINIONS OF COUNSEL AS IT DEEMS NECESSARY FROM THE PERSON
EXERCISING THIS WARRANT TO ESTABLISH THE EXISTENCE OF SUCH EXEMPTIONS.

NEITHER THIS WARRANT NOR THE SECURITIES INTO WHICH THIS WARRANT IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION, OR THE SECURITIES
COMMISSION OF ANY STATE, IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. IN ADDITION, THIS WARRANT AND
THE SECURITIES INTO WHICH THIS WARRANT IS EXERCISABLE MAY BE DEEMED CONTROL
SECURITIES WITHIN THE MEANING OF THE SECURITIES ACT. THE WARRANT OR THE SECURITIES
INTO WHICH THIS WARRANT IS EXERCISABLE MAY NOT BE OFFERED OR SOLD OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY.

THIS WARRANT IS SUBJECT TO OTHER RESTRICTIONS ON TRANSFER AS SET FORTH IN THE
SECURITIES PURCHASE AGREEMENT, DATED February 16, 2007, A COPY OF WHICH IS AVAILABLE
FROM THE COMPANY UPON WRITTEN REQUEST AND WITHOUT CHARGE.

(c) The Purchaser agrees that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance
that the Purchaser will sell or otherwise transfer any Securities pursuant to either the
registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom.

ARTICLE V

MISCELLANEOUS

5.1 Fees and Expenses. Except as expressly set forth in the Transaction Documents to
the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The Company shall pay all
transfer agent fees, stamp taxes and other taxes and duties levied in connection with the issuance
of any Securities in the name of the Purchaser.

5.2 Entire Agreement. The Transaction Documents, together with the exhibits and other
attachments thereto, contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and
attachments.

5.3 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on
the earliest of (a) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number set forth on the signature page to this Agreement prior to 5:30
p.m. (Eastern Time) on a Trading Day, (b) the next Trading Day after the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number set forth on the
signature page to this Agreement on a day that is not a Trading Day or later than 5:30 p.m.
(Eastern Time) on any Trading Day, (c) the second Trading Day following the date of mailing, if
sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature page to this Agreement.

5.4 Amendments; Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by the Company and the
Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is
sought. No waiver of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair the exercise of any
such right.

5.5 Construction. The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

5.6 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their successors and permitted assigns. The Company may not
assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Purchaser. The Purchaser may assign any or all of its rights under this Agreement to any
Person to whom the Purchaser assigns or transfers any Securities, provided such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the provisions hereof that
apply to the “Purchaser.”

5.7 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person.

5.8 Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of the Transaction Documents shall be governed by and construed and enforced in
accordance with the internal laws of the State of Delaware, without regard to the principles of
conflicts of law thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by this Agreement and any
other Transaction Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, stockholders, employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the State of Delaware. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the
adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or inconvenient venue for such proceeding. Each
party hereby irrevocably waives personal service of process and consents to process being served in
any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. The parties hereby waive all rights
to a trial by jury. If either party shall commence an action or proceeding to enforce any
provisions of the Transaction Documents, then the prevailing party in such action or proceeding
shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or proceeding.

5.9 Survival. The representations and warranties contained herein shall survive the
Closing and the delivery of the Securities, as applicable, for a period of two years.

5.10 Execution. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and
effect as if such facsimile signature page were an original thereof.

5.11 Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.

5.12 Replacement of Securities. If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued
in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such mutilation, loss, theft or destruction and customary and
reasonable indemnity, if requested. The applicants for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs associated with the issuance of such
replacement Securities.

5.13 Remedies. In addition to being entitled to exercise all rights provided herein
or granted by law, including recovery of damages, the Purchaser and the Company will be entitled to
specific performance under the Transaction Documents. The parties agree that monetary damages may
not be adequate compensation for any loss incurred by reason of any breach of obligations described
in the foregoing sentence and hereby agree to waive in any action for specific performance of any
such obligation the defense that a remedy at law would be adequate.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized signatories as of the date first indicated above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CTI GROUP (HOLDINGS) INC.

	 	Address for Notice:
	By:
	 	/s/John Birbeck
	 	333 North Alabama Street, Suite 240
	 	 	 
	 	 	 	 
	 
	 	Name:
	 	John Birbeck
	 	Indianapolis, Indiana 46204

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Title:
	 	CEO
	 	Fax No.:  317-262-4513

	 
	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	With a copy to (which shall not constitute notice):
	Blank Rome LLP
	One Logan Square
	Philadelphia, PA 19103
	Attn: Alan H. Lieblich, Esq.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	FAIRFORD HOLDINGS LIMITED
	 	Address for Notice:
	 
	 	 	 	 	 	 
	By:	 	/s/Bengt Dahl
	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 
	 
	 	 	 	 	 	 
	
 
	 	Name:
	 	Bengt Dahl
	 	Box 40, 831 21 Östersund, Sweden
	
 
	 	 	 	 
	 	

	 
	 	 	 	 	 	 
	
 
	 	Title:
	 	Director
	 	Fax No.: 46 63 13 38 25
	
 
	 	 	 	 
	 	

	 
	 	 	 	 	 	 

2EX-10.1

AMERICA FIRST APARTMENT INVESTORS, INC.

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is effective as of February 21, 2007, by and
between AMERICA FIRST APARTMENT INVESTORS, INC., a Maryland corporation with its principal place of
business in Omaha, Nebraska (the “Company”), and JOHN H. CASSIDY (“Employee”), a resident of the
State of New York.

WHEREAS, prior to December 30, 2005, the Company was an externally-advised real estate
investment trust and, as a result, its executive officers were employees of The Burlington Capital
Group, L.L.C. (f/k/a America First Companies L.L.C.) (“Burlington”) which was the parent company of
the Company’s external advisor; and

WHEREAS, on December 30, 2005, the Company completed its transition from being externally
advised to being self advised through the merger of its external advisor into the Company and, as a
result, persons acting as the executive officers of the Company became direct employees of the
Company and the Company assumed the employment agreements of these individuals, including the
employment agreement between Burlington and Employee dated October 1, 2005 (the “Original
Agreement”); and

WHEREAS, the Company continues to desire to employ Employee as its President and Chief
Executive Officer and Employee desires to be employed by the Company in such capacity; and

WHEREAS, the Company and the Employee desire to amend and restate the Original Agreement to
reflect the transition of the Company to an self-advised real estate investment trust and to
incorporate various amendments adopted and approved by the compensation committee of the Company’s
Board of Directors (the “Committee”) subsequent thereto;

NOW THEREFORE, the Company and Employee, each intending to be legally bound, agree to the
following terms and conditions:

Section 1. EMPLOYMENT.

(a) The Company hereby agrees to continue to employ Employee on a full time basis as its
President and Chief Executive Officer.

(b) Employee hereby represents and warrants to the Company that (i) the execution, delivery
and performance of this Agreement by Employee does not and will not conflict with, breach, violate
or cause a default under any contract, agreement, instrument, order, judgment or decree to which
Employee is a party or by which he is bound, (ii) Employee is not a party to or bound by any
employment agreement, noncompete agreement or confidentiality agreement with any other person or
entity and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement
shall be the valid and binding obligation of Employee, enforceable in accordance with its terms.

Section 2. TERM. The term of this Agreement will be indefinite; provided, however, that the
Employee’s employment with the Company will terminate (i) upon the death of Employee, (ii) upon the
expiration of a continuous period of one hundred eighty (180) days during which Employee is
disabled (as defined in the long-term disability plan of the Company) (hereinafter “Disabled”),
(iii) upon termination by Employee pursuant to Section 9(b) hereof, or (iv) termination by the
Company pursuant to Section 9(a) hereof.

Section 3. DUTIES; REPORTING.

(a) During the term hereof, Employee shall have the normal responsibilities, duties and
authorities of President and Chief Executive Officer of the Company described in its bylaws and
such other reasonable duties as may be assigned to him by the Board of Directors of the Company
(the “Board”) from time to time.

(b) Employee shall perform faithfully the executive duties assigned to him to the best of his
ability in a diligent, trustworthy, businesslike and efficient manner and will devote his full
business time and attention to the business and affairs assigned to him hereunder; provided,
however, that Employee may serve as a director of or a consultant to other corporations which do
not compete with the Company or its subsidiaries or affiliates, nonprofit corporations, civic
organizations, professional groups and similar entities.

(c) During the term hereof, Employee shall report to the Board.

Section 4. BASE SALARY. As compensation for his services hereunder, the Company shall pay to
Employee an annual base salary (the “Base Salary”) during the term hereof. The amount of the
Employee’s Base Salary shall be determined by the Committee. Base Salary will be paid in equal
installments on a bi-weekly basis pursuant to the Company’s regular payroll practices.

Section 5. BONUS. In addition to the Base Salary, Employee shall be eligible to receive an
annual bonus based on Employee’s performance. The performance goals and amount of the Employee’s
bonus, if any, shall be determined by the Committee pursuant to its then current compensation plan.
Any bonuses awarded to Employee will be paid pursuant to the Company’s regular payroll practices.

Section 6. PARTICIPATION IN EMPLOYEE BENEFIT PLANS. Employee will be entitled to participate
in all Company salaried employee benefit plans and programs, subject to the terms and conditions of
each such employee benefit plan or program and to the extent commensurate with the position.

Section 7. OTHER BENEFITS.

(a) VACATION. Employee shall initially be entitled to paid vacation in accordance with the
Company’s vacation policies.

(b) INSURANCE. The Company shall make available to Employee health and dental insurance
(including dependent coverage), and other benefits which the Company may provide to all employees
from time to time.

Section 8. BUSINESS EXPENSES. The Company shall reimburse Employee for all reasonable
expenses incurred by him in the course of performing his duties under this Agreement which are
consistent with the Company’s policies in effect from time to time with respect to travel,
entertainment and other business expenses, subject to the Company’s requirements with respect to
report and documentation of such expenses.

Section 9. TERMINATION OF EMPLOYMENT.

(a) TERMINATION BY THE COMPANY. The Company may terminate this Agreement and discharge
Employee either with or without “Cause” at any time. As used herein, the term “Cause” shall mean
any material and uncured breach of this Agreement by Employee, including a failure to perform his
duties in a manner consistent with the terms of this Agreement or the persistent failure or refusal
to comply with any lawful direction of the Board, or any action taken by Employee in connection
with his duties hereunder which is fraudulent or illegal, violates his duty of loyalty or
constitutes gross negligence. A termination of employment by the Company shall be deemed to be
effective immediately upon notification thereof to Employee.

(b) TERMINATION BY THE EMPLOYEE. Any termination of employment by Employee shall be a
“Voluntary Termination” unless it is the result of (i) Employee’s death, (ii) Employee being
Disabled or (iii) resignation due to a material and uncured breach by the Company of this
Agreement. A Voluntary Termination shall be deemed to be effective immediately upon notification
thereof to the Company.

(c) CERTAIN EFFECTS OF TERMINATION OF EMPLOYMENT.

(i) Subject to Section 9(d) hereof, upon the termination of Employee’s employment
hereunder pursuant to a Voluntary Termination or a termination for Cause, Employee shall
have no further rights or claims against the Company under this Agreement except to receive
a lump sum payment within thirty (30) days of the date of termination of (A) the unpaid
portion of Employee’s Base Salary and any unpaid Bonus relating to the year prior to the
year in which the date of termination occurs, and (B) reimbursement of any reimbursable
expenses for which Employee shall not have theretofore been reimbursed.

(ii) Upon the termination of Employee’s employment hereunder by reason of Employee’s
death or Employee becoming Disabled, the Company shall pay to Employee or Employee’s
personal representative or custodian within thirty (30) days of the date of the termination
of Employee’s employment a lump sum equal to (A) an amount equal to six months of Employee’s
Base Salary at the date of termination, (B) the unpaid portion of Employee’s Base Salary,
any unpaid Bonus relating to the year prior to the year in which the date of termination
occurs, and any current year Bonus based on year-to-date performance results through the
date of termination (as determined by the Committee but in no event less than 20% of the
threshold Bonus established for Employee for such current year), and (C) reimbursement of
any reimbursable expenses for which Employee shall not have theretofore been reimbursed. In
addition, Employee or Employee’s personal representative or custodian will be entitled to
any benefits provided under any plans maintained by the Company in which Employee is a
participant on the date of termination in accordance with the terms of such benefit plan;

(iii) Subject to Section 9(d) hereof, upon the termination of Employee’s employment
hereunder other than for Cause, death, Disability or Voluntary Termination, the Company
shall pay to Employee in accordance with the Company’s regular payroll practices
(A) severance payment equal to twelve months of Employee’s Base Salary at the date of
termination, (B) the unpaid portion of Employee’s Base Salary, any unpaid Bonus relating to
the year prior to the year in which the date of termination occurs, and any current year
Bonus based on year-to-date performance results through the date of termination (as
determined by the Committee but in no event less than 20% of the threshold Bonus established
for Employee for such current year), and (C) reimbursement of any reimbursable expenses for
which Employee shall not have theretofore been reimbursed. In addition, Employee will be
entitled to any benefits provided under any plans maintained by the Company in which
Employee is a participant on the date of termination in accordance with the terms of such
benefit plan.

(d) CHANGE IN CONTROL.

(i) Notwithstanding any other provision of this Section 9, in the event Employee’s
employment hereunder is terminated by the Company other than for Cause, or there is a
Voluntary Termination for “Good Reason” (defined below) either in contemplation of, or
within twelve months following, a “Change in Control” (defined below), the Company shall pay
Employee a lump sum cash payment equal:

(A) the total amount Employee would be entitled to receive upon a termination
described in Section 9(c)(iii) above; plus;

(B) $1,000,000.

In addition, if any unvested awards of stock options or other equity-based compensation made
to Employee do not immediately vest by their terms upon a Change in Control because they
have been assumed by a successor entity or converted into a right to receive securities of a
successor entity, then such unvested awards will become fully vested upon termination of
employment under this Section 9(d).

(ii) “Change in Control” shall mean any one of the following events: (A) a dissolution
or liquidation of the Company, (B) a sale of substantially all of the assets of the Company,
(C) a merger or combination involving the Company after which the owners of Common Stock of
the Company immediately prior to the merger or combination own less than 50% of the
outstanding shares of common stock of the surviving corporation, or (D) the acquisition of
more than 30% of the outstanding shares of Common Stock of the Company, whether by tender
offer or otherwise, by any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934) other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Company. The decision of the Committee as to whether
a Change in Control has occurred shall be conclusive and binding.

(iii) “Good Reason” shall mean any one of the following events: (A) a material
reduction of Employee’s duties, titles or responsibilities or the assignment of any duties,
responsibilities or reporting requirements that are materially inconsistent with his
position as President and Chief Executive Officer, (B) a reduction in Employee’s annual Base
Salary or target Bonus; (C) a requirement imposed by the Company that the principal place of
business at which the Employee performs his duties be changed to a location that is outside
of the New York City MSA, (D) a material and continuing breach by the Company of any
provision of this Agreement or (E) such other circumstances as the Committee reasonably
determines constitute Good Reason, provided Employee notifies the Company of his
determination that Good Reason exists within 30 days of such event and the Company fails to
cure or resolve the action or omission resulting in Good Reason within 30 days after
delivery of such notice.

(iv) A termination of employment shall be deemed to be made “in contemplation of” a
Change of Control if it occurs at anytime after execution by the Company of any document
setting forth the terms of a contemplated transaction which is reasonably expected to result
in a Change of Control, including but not limited to a nonbinding letter of intent or term
sheet.

(v) If any portion of a payment which would otherwise be made to the Employee under
this Section 9(d) is determined to be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code of 1986, as amended, then Employee shall have no right to receive
a payment under this Section 9(d) in excess of the greatest amount which may be paid to the
Employee without any amount thereof being subject to the excise tax imposed under such
Section 4999 (the “Payment Limit”). The determination of the Payment Limit shall be made by
a certified public accounting firm designated by the Company (subject to any audit committee
approval required by law or stock exchange listing requirements) (the “Accounting Firm”),
which shall provide detailed supporting calculations of the Payment Limit to both the
Company and the Employee. The determination of the Payment Limit made by the Accounting
Firm shall be binding upon the Company and the Employee; provided, however, that if a
qualified tax advisor engaged by Employee (“Employee’s Advisor”) determines that the Payment
Limit established by the Accounting Firm could, in its opinion, subject a portion of the
payments that would be made to Employee under this Section 9(d) to the excise tax imposed by
Section 4999, then Employee’s Advisor may determine a lower Payment Limit and such Payment
Limit as determined by Employee’s Advisor will be binding on the Company and the Employee.
The fees and expenses of the Accounting Firm and not more than one Employee Advisor shall be
borne solely by the Company. Notwithstanding any limitation on such payment imposed in good
faith under this paragraph (v), if it is subsequently determined that a payment made to
Employee under this Section 9(d) is subject to an excise tax under Section 4999, then the
payment of such excise tax shall be to sole responsibility of the Employee.

(e) EFFECT OF BREACH OF CONFIDENTIALITY PROVISIONS. In the event Employee breaches or
otherwise fails to comply with the provisions of Sections 11 or 12 below, then, in addition to any
other remedies provided herein or at law or in equity, the Company shall have the right to require
return of any payment made to Employee pursuant to Section 9(c) or (d) above. Return of such
payment pursuant to the preceding sentence shall not relieve Employee’s obligations pursuant to
Sections 11 or 12 below.

Section 10. ASSIGNMENT AND SUCCESSION.

(a) The rights and obligations of the Company under this Agreement shall inure to the benefit
of and be binding upon its respective successors and assigns, and Employee’s rights and obligations
hereunder shall inure to the benefit of and be binding upon his successors and permitted assigns,
whether so expressed or not.

(b) Employee acknowledges that the services to be rendered by him hereunder are unique and
personal. Accordingly, Employee may not pledge or assign any of his rights or delegate any of his
duties or obligations under this Agreement without the express prior written consent of the
Company.

(c) The Company may assign its interest in or obligations under this Agreement without the
prior written consent of Employee.

Section 11. CONFIDENTIAL INFORMATION.

(a) Employee agrees at all times during the term of his relationship with the Company and
thereafter, to hold in strictest confidence, and not to use, except for the benefit of the Company
or its subsidiaries or affiliates, or to disclose to any person, firm, corporation or other entity
without written authorization of the Board, any Confidential Information of the Company or its
subsidiaries or affiliates which Employee obtains or creates, by whatever means. Employee further
agrees not to make copies of such Confidential Information except as authorized by the Company.

(b) For purposes of this Agreement, “Confidential Information” shall be construed broadly and
includes all Company (including its subsidiaries and affiliates) proprietary information, technical
data, trade secrets or know-how, including, but not limited to, research, product plans, products,
services, suppliers, customer lists and customers, prices and costs, markets, software,
developments, inventions, notebooks, processes, technology, designs, drawings, engineering,
hardware configuration information, marketing, licenses, finances, budgets or other business
information disclosed to Employee by the Company or its subsidiaries or affiliates either directly
or indirectly in writing, orally or by observation by Employee during the term hereof, whether or
not during working hours. Employee understands that Confidential Information includes, but is not
limited to, information pertaining to any aspects of the business of the Company or its
subsidiaries or affiliates which is either information not known by actual or potential competitors
of the Company or its subsidiaries or affiliates or is proprietary information of the Company, its
subsidiaries or affiliates or their respective investors, customers or suppliers, of any nature
whatsoever. Confidential Information does not include any of the foregoing items which have become
publicly and widely known and made generally available through no wrongful act of Employee’s or of
others who were under confidentiality obligations as to the item or items involved.

(c) Employee agrees that, at the time of termination of his relationship with the Company, he
will deliver to the Company (and will not keep in his possession, recreate or deliver to anyone
else) any and all devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, notebooks, materials, flow charts, equipment, other
documents or property, or reproductions of any aforementioned items developed by Employee pursuant
to the relationship or otherwise belonging to the Company, or its subsidiaries or affiliates.
Employee further agrees that any property situated on the Company’s premises and owned by the
Company, or its subsidiaries or affiliates, including disks and other storage media, filing
cabinets or other work areas, is subject to inspection by Company personnel at any time with or
without notice.

Section 12. FORMER EMPLOYER INFORMATION. Employee represents that as an employee of the
Company, he has not breached and will not breach any agreement to keep in confidence proprietary
information, knowledge or data acquired by Employee in confidence or trust prior or subsequent to
the commencement of Employee’s relationship with the Company, and Employee will not disclose to the
Company, or induce the Company to use, any inventions, confidential or proprietary information or
material belonging to any previous employer or any other party.

Section 13. NONCOMPETITION; NONSOLICITATION.

(a) During the term hereof and for a period of one (1) year following the termination of
Employee’s employment relationship with the Company (whether or not this Agreement is extended),
Employee shall not:

(i) become a direct employee of, or serve as a consultant to, any company which is
engaged in the ownership, operation and/or management of multi-family apartment properties
which owns, operates and/or manages a total of more than 1,000 rental units located in the
United States;

(ii) own, operate or manage any multi-family apartment property or other commercial
real estate, or hold any interest in such a property, which is or was owned, operated or
managed by the Company or its subsidiaries or affiliates during the term of this Agreement,
or serve as an employee or consultant to any company or person owning, operating or managing
any such property;

(iii) induce or attempt to induce any employee, supplier or person or company having a
business relationship with the Company or its subsidiaries or affiliates to terminate their
employment or other such business relationship with the Company or its subsidiaries or
affiliates or to hire any person who had been employed by the Company or its subsidiaries or
affiliates during the preceding six months; or

(iv) become a direct employee of, or serve as a consultant to, any company for which
the Company (or any subsidiary or affiliate of the Company) then provides property
management services or has provided property management services during the preceeding
twelve (12) months.

(b) In consideration for entering into the foregoing restrictions, the Company will pay
Employee an amount equal to 1.5 times his then Base Salary but not to exceed $420,000 upon
termination of the Employee’s employment. In the event Employee breaches the provisions of
paragraph (a) of this Section 13, the Company shall be entitled to recover, as liquidated damages,
the full amount of the payment made to Employee under this Section 13(b). Employee acknowledges
that the foregoing restrictions are reasonable and necessary in order to protect the Company’s
legitimate interests.

Section 14. ARBITRATION AND EQUITABLE REMEDIES.

(a) Except as provide in Section 14(b) hereof, the parties agree that any dispute or
controversy arising out of, relating to, or concerning the interpretation, construction,
performance or breach of this Agreement, shall be settled by arbitration to be held in Omaha,
Nebraska, in accordance with the Employment Dispute Resolution rules of the American Arbitration
Association then in effect. The arbitrator may grant injunctions or other relief in such dispute or
controversy and the decision of the arbitrator shall be final, conclusive and binding on the
parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court
having jurisdiction. The Company and Employee shall each pay one-half of the costs and expenses of
such arbitration, and each shall separately pay the fees and expenses of their respective legal
counsel.

THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE’S RIGHT TO A JURY TRIAL AND RELATES
TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP.

(b) Notwithstanding paragraph (a) of this Section 14, the parties agree that, in the event of
the breach or threatened breach of Sections 11 or 12 of this Agreement by Employee, monetary
damages alone would not be an adequate remedy to the Company and its affiliates for the injury that
would result from such breach, and that the Company and its affiliates shall be entitled to apply
to any court of competent jurisdiction for specific performance and/or injunctive relief (without
posting bond or other security) in order to enforce or prevent any violation of such provisions of
this Agreement. Employee further agrees that any such injunctive relief obtained by the Company or
any of its affiliates shall be in addition to monetary damages.

Section 15. INDEMNIFICATION. The Company agrees to indemnify and hold harmless Employee for
any and all actions taken by Employee in carrying out his duties under this Agreement to the extent
provided in the Company’s Operating Agreement, as it may be amended from time to time.

Section 16. ENTIRE AGREEMENT. This Agreement represents the entire agreement between the
parties relating to the subject matters covered hereby and shall supersede any prior
understandings, agreements or representations by or between the parties, written or oral, which may
have related to the subject matter hereof in any way (including the Original Agreement).

1

Section 17. NOTICES. Any notice or request required or permitted to be given hereunder shall
be in writing and will be deemed to have been given (i) when delivered personally, sent by telecopy
(with hard copy to follow) or overnight express courier or (ii) five days following mailing by
certified or registered mail, postage prepaid and return receipt requested, to the addresses below
unless another address is specified by such party in writing:

	 	 	 	To the Company: America First Apartment Investors, Inc.

	 	 	 
	1004 Farnam Street

Suite 100

Omaha, NE 68102

	 	

	 
	 	 
	Attention: Chairman of the Board

	 
	 	 
	Telephone: (402) 557-6360

Telecopy: (402) 557-6399

To Employee:

	 	

At the Employee’s regular place of business

Section 18. HEADINGS. The article and section headings herein are for convenience of
reference only and shall not define or limit the provisions hereof.

Section 19. APPLICABLE LAW. All other questions concerning the construction, validity and
interpretation of this Agreement shall be governed by the internal laws of the State of New York.

Section 20. SEVERABILITY. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held prohibited by, invalid or unenforceable in any respect under applicable
law, such provision will be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions of this Agreement.

Section 21. AMENDMENTS AND WAIVERS. Any provision of this Agreement may be amended or waived
only with the prior written consent of the Company and Employee.

Section 22. NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party hereto.

Section 23. COUNTERPARTS. This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one and the same
agreement.

Section 24. SURVIVAL. Sections 11, 12, 13 and 15 shall survive and continue in full force in
accordance with their terms notwithstanding any termination of the term hereof.

Section 25. CODE SECTION 409A SAVINGS CLAUSE. It is the intention of the Company that amounts
paid under this Agreement shall not constitute “deferred compensation” subject to Section 409A of
the Code, unless and to the extent that the Company specifically determines otherwise. In the
event the Company determines that this Agreement or any section hereof is subject to Code
Section 409A, the Company may amend this Agreement in a manner that complies with Code Section 409A
as determined in the Company’s sole discretion.

IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized
officer and Employee has signed this Agreement.

AMERICA FIRST APARTMENT INVESTORS, INC.

By /s/ Michael Yanney

Michael Yanney, Chairman of the Board of

Directors

EMPLOYEE

/s/ John H. Cassidy

	 	 	John H. Cassidy

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