Document:

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                                                                    Exhibit 10.2

                                     FORM OF
                            ADVISORY AGREEMENT AMONG
                    ORION MULTIFAMILY INVESTMENT FUND, INC.,
                              ORION MULTIFAMILY LP
                                       and
                              ORION MULTIFAMILY LLC

        This Advisory Agreement (this "Agreement") dated as of July __, 2003 is
between Orion Multifamily Investment Fund, Inc., a Maryland corporation (the
"Company"), Orion Multifamily LP, a Delaware limited partnership (the "OP"), and
Orion Multifamily LLC, a Delaware limited liability company (the "Advisor"). The
Company and the OP are sometimes referred to herein collectively as the
"Advisees" and each individually as an "Advisee."

                              W I T N E S S E T H:

        WHEREAS, the Company is a Maryland corporation created in accordance
with applicable provisions of the Maryland General Corporation Law, as amended
from time to time (the "Maryland GCL"); and

        WHEREAS, the purposes of the Company are, as determined from time to
time by the board of directors of the Company (the "Board of Directors"), to
engage in any lawful business or activity for which a corporation may be created
under the Maryland GCL; and

        WHEREAS, the Company is the general partner of the OP; and

        WHEREAS, the Company desires, on its own behalf and as general partner
of the OP, to avail itself of the experience, sources of information, advice and
assistance of the Advisor and to have the Advisor undertake the duties and
responsibilities hereinafter set forth, on behalf of and subject to the
supervision of the Board of Directors, all as provided herein; and

        WHEREAS, the Advisor is willing to render such services, subject to the
supervision of the Board of Directors, on the terms and conditions hereinafter
set forth;

        NOW, THEREFORE, in consideration of the mutual covenants herein
contained, IT IS AGREED as follows:

        1.      Definitions. Capitalized terms used but not defined herein shall
have the meaning ascribed to them in the Company's Charter (as herein defined),
and the following terms, as used herein, shall have the meanings set forth
below:

        (a)     "Acquisition Expenses" shall mean expenses related to the
Advisee's selection of, and investment in, real properties and mortgage
investments and other investments, whether or not acquired or made, including
but not limited to advertising costs, brokerage fees, environmental, engineering
and other due diligence expenses, legal fees and expenses, travel and
communications expenses, cost of appraisals, accounting fees and expenses, title
insurance and miscellaneous other expenses.

        (b)     "Acquisition Fee" shall have the meaning set forth in Section
11(a)(i).

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        (c)     "Affiliate" means a Person who is (i) in the case of an
individual, any relative of such Person, (ii) any officer, director, trustee,
partner, manager, employee or holder of ten percent (10%) or more of any class
of the voting securities of or equity interest in such Person; (iii) any
corporation, partnership, limited liability company, trust or other entity
controlling, controlled by or under common control with such Person; or (iv) any
officer, director, trustee, partner, manager, employee or holder of ten percent
(10%) or more of the outstanding voting securities of any corporation,
partnership, limited liability company, trust or other entity controlling,
controlled by or under common control with such Person. For purposes of this
definition, the term "controls," "is controlled by," or "is under common control
with" shall mean the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of an entity, whether through
the ownership of voting rights, by contract or otherwise.

        (d)     "Asset Management Fee" shall have the meaning set forth in
Section 11(a)(ii).

        (e)     "Average Invested Assets" shall mean the average, at the end of
each calendar month during the calendar quarter in respect of which an Asset
Management Fee is being calculated, of the aggregate book value of the Advisees'
assets invested in real estate equity interests and loans, before reserves for
depreciation or bad debt or other similar non-cash reserves.

        (f)     "Board of Directors" shall have the meaning set forth in the
recitals hereto.

        (g)     "Cause" shall mean (x) fraud, criminal conduct, willful
misconduct or illegal or negligent breach of fiduciary duty by the Advisor or a
breach of this Agreement by the Advisor; or (y) if any of the following events
occur: (i) the Advisor shall violate any material provision of this Agreement,
and after written notice of such violation, shall not cure such default within
30 days or have begun action within 30 days to cure the default which shall be
completed with reasonable diligence, (ii) the Advisor shall be adjudged bankrupt
or insolvent by a court of competent jurisdiction, or an order shall be made by
a court of competent jurisdiction for the appointment of a receiver, liquidator,
or trustee of the Advisor, for all or substantially all of its property by
reason of the foregoing, or if a court of competent jurisdiction approves any
petition filed against the Advisor for reorganization, and such adjudication or
order shall remain in force or unstayed for a period of 30 days, (iii) the
Advisor shall institute proceedings for voluntary bankruptcy or shall file a
petition seeking reorganization under the federal bankruptcy laws, or for relief
under any law for relief of debtors, or shall consent to the appointment of a
receiver for itself or for all or substantially all of its property, or shall
make a general assignment for the benefit of its creditors, or shall admit in
writing its inability to pay its debts, generally, as they become due.

        (h)     "Change of Control" shall mean a change of control of the
Company of a nature that would be required to be reported in response to the
disclosure requirements of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), as enacted and
in force on the date hereof, whether or not the Company is then subject to such
reporting requirements; provided, however, that, without

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limitation, a Change of Control shall be deemed to have occurred if: (i) any
"person" (within the meaning of Section 13(d) of the Exchange Act, as enacted
and in force on the date hereof) is or becomes the "beneficial owner" (as that
term is defined in Rule 13d-3, as enacted and in force on the date hereof, under
the Exchange Act) of securities of the Company representing 9.8% or more of the
combined voting power of the Company's securities then outstanding; (ii) there
occurs a merger, consolidation or other reorganization of the Company which is
not approved by the Board of Directors; (iii) there occurs a sale, exchange,
transfer or other disposition of substantially all of the assets of the Company
to another entity, which disposition is not approved by the Board of Directors;
or (iv) there occurs a contested proxy solicitation of the Shareholders of the
Company that results in the contesting party electing candidates to a majority
of the Board of Directors' positions next up for election.

        (i)     "Charter" shall mean the Articles of Incorporation of the
Company dated as of June 24, 2003, as amended from time to time.

        (j)     "Cumulative Non-Compound Return" shall mean, for any period for
which a calculation thereof is being paid, the percentage resulting from
dividing (i) the total distributions paid on each distribution payment date
during such period by (ii) the product of (x) the daily average adjusted
investor capital for such period and (b) the number of years (including
fractional years) elapsed during such period (based on a year of 365 days).

        (k)     "Deferred Acquisition Fee" shall have the meaning set forth in
Section 11(b)(i).

        (l)     "Election Notice" shall have the meaning set forth in Section
13(b).

        (m)     "Funds From Operations" shall mean net income (computed in
accordance with GAAP), excluding gains or losses from debt restructuring and
sales of properties, plus depreciation of real property and amortization, and
after adjustments for unconsolidated partnerships and joint ventures.

        (n)     "Funds From Operations Per Weighted Average Share" shall mean
the amount equal to four (4) times the Funds From Operations per weighted
average Share for the Company for the quarter in which an Election Notice is
delivered, based on and as described in the quarterly report of the Company
delivered to its stockholders for such quarter.

        (o)     "GAAP" shall mean United States generally accepted accounting
principals, consistently applied.

        (p)     "Good Reason" shall mean, with respect to the termination of
this Agreement, (x) any failure to obtain a satisfactory agreement from any
successor to an Advisee to assume and agree to perform such Advisee's
obligations under this Agreement; or (y) any material breach of this Agreement
of any nature whatsoever by an Advisee.

        (q)     "Independent Director" shall have the meaning set forth in the
By-laws of the Company, as amended from time to time.

        (r)     "Initial Term" shall have the meaning set forth in Section
17(a).

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        (s)     "Partnership Agreement" shall mean the Agreement of Limited
Partnership of the OP dated as of June 30, 2003, as amended and restated from
time to time.

        (t)     "Person" shall mean an individual, corporation, partnership,
joint venture, association, company (whether of limited liability or otherwise),
trust, bank or other entity, or government or any agency or political
subdivision of a government.

        (u)     "Preferred Return" shall mean the receipt by the stockholders of
the Company of (i) a Cumulative Non-Compound Return of 7% per year on such
stockholders' net investment, and (ii) the amount of such net investment.

        (v)     "Property Disposition Fee" shall have the meaning set forth in
Section 11(a)(iii).

        (w)     "Prospectus" shall mean the final prospectus of the Company in
connection with the initial registration of the Shares filed with the SEC on
Form S-11, as amended and supplemented from time to time.

        (x)     "SEC" shall mean the United States Securities and Exchange
Commission.

        (y)     "Share" shall mean a share of the Common Stock, par value $0.01,
of the Company.

        (z)     "Subordinated Incentive Advisory Fee" shall have the meaning set
forth in Section 11(b)(ii).

        (aa)    "Termination Fee" shall have the meaning set forth in Section
17(b).

        (bb)    "Total Operating Expenses" of a Person means the aggregate of
all expenses paid or incurred by such Person, but excluding organization and
offering expenses, interest payments, taxes, non-cash expenditures, any
Subordinated Incentive Advisory Fee or Acquisition Fee or other acquisition
expenses.

        2.      Duties of Advisor. The Company, on its own behalf, and as
general partner of the OP, hereby retains and appoints the Advisor as the
advisor of the Company and the OP to perform the services hereinafter set forth,
and the Advisor hereby accepts such appointment, all subject to the terms and
conditions hereinafter set forth. In the performance of this undertaking,
subject to the supervision of the Board of Directors and consistent with the
provisions of the Company's Charter and the Agreement of Limited Partnership of
the OP (the "Partnership Agreement"), the Advisor shall devote sufficient
resources to the administration of the Company to discharge is obligations
hereunder and shall:

        a.      obtain for the Advisees, furnish and/or supervise the services
necessary to perform any ministerial functions in connection with the management
of the day-to-day operations of the Advisees;

        b.      use its best efforts to seek out, present and recommend to the
Advisees, whether through its own efforts or those of third parties retained by
it, suitable investment

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opportunities that are consistent with the Advisees' respective investment
objectives and policies and acquisition strategy and objectives, as adopted by
the Board of Directors from time to time, and negotiate on behalf of the
Advisees with respect to potential investments or the disposition thereof;

        c.      exercise absolute discretion, subject to the Board of Directors'
review, in decisions to originate, acquire, retain or sell real properties,
provided, that, the Advisor may acquire on behalf of the Advisees any real
property with purchase price that is less than $15,000,000, or finance such an
acquisition on the Advisees' behalf, without the prior approval of the Board of
Directors if and to the extent that:

                i.      the proposed acquisition or financing would not, if
                        consummated, violate or conflict with the investment
                        guidelines of the Advisees as set forth in the
                        Prospectus;

                ii.     the proposed acquisition or financing would not, if
                        consummated, violate the restriction set forth in
                        section 2(f) below; and

                iii.    the consideration proposed to be paid for such real
                        property does not exceed the fair market value of such
                        property, as determined by a qualified independent real
                        estate appraiser selected in good faith by the Advisor
                        and acceptable to the Independent Directors;

        d.      recommend investment opportunities consistent with the Advisees'
respective investment objectives and policies and negotiate on behalf of the
Advisees with respect to potential investments or the disposition thereof;

        e.      structure the terms and conditions pursuant to which
acquisitions of properties will be made, subject to the Board of Directors'
review;

        f.      arrange for financing and refinancing of properties, subject to
the Board of Directors' prior approval if such financing or refinancing, when
consummated causes the total leverage on each such property or on all such
properties in the aggregate to exceed 65% of such property's or properties', as
the case may be, fair market value;

        g.      obtain for the Advisees such other services as may be required
in acquiring or disposing of investments, disbursing and collecting the funds of
the Advisees, paying the debts and fulfilling the obligations of the Advisees,
and handling, prosecuting and settling any claims of the Advisees;

        h.      obtain for the Advisees such services as may be required for
property management, leasing, mortgage brokerage and servicing, and other
activities relating to the investment portfolio of the Advisees;

        i.      supervise the servicing of the Advisees' loan portfolios;

        j.      administer the Advisee's respective bookkeeping and accounting
fuctions, and prepare, or cause to be prepared, statements and other relevant
information for distribution to

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stockholders or partners, as the case may be, including annual and quarterly
reports and any filings required by regulatory authorities;

        k.      monitor operations and expenses of the Advisees;

        l.      from time to time, or as requested by the Board of Directors,
make reports to the Advisees as to its performance of the foregoing services;

        m.      perform any other powers of the Board of Directors or the
Company (as general partner of the OP) which (with respect to the Company) are
set forth in the Charter and the Partnership Agreement, as applicable, which may
be delegated to it by the Board of Directors from time to time;

        n.      render such other services as the Board of Directors deems
appropriate; and

        o.      do all things necessary to assure its ability to render the
services contemplated herein.

        3.      Fiduciary Relationship. The Advisor, as a result of its
relationship with the Advisees pursuant to this Agreement, stands in a fiduciary
relationship with the Stockholders of the Company and the partners of the OP.

        4.      No Partnership or Joint Venture. The Advisees and the Advisor
are not partners or joint venturers with each other and nothing herein shall be
construed to make them partners or joint venturers or impose any liability as
such on either of them.

        5.      Records. At all times, the Advisor shall keep books of account
and records relating to services performed hereunder, which books of account and
records shall be accessible for inspection by the Advisees and the Advisee's
appointees at any time during the ordinary business hours of the Advisor.

        6.      REIT Qualification; Other Limitations on Advisor Actions.
Anything else in this Agreement to the contrary notwithstanding, the Advisor
shall refrain from any action which, in its sole judgment made in good faith,
or, in the judgment of the Board of Directors provided that the Board of
Directors give the Advisor written notice to such effect, would (a) adversely
affect the status of the Company as a real estate investment trust pursuant to
Section 856 of the Code; (b) cause the Advisees to be classified as an
"investment company" for purposes of the Investment Company Act of 1940, as
amended, (c) cause the OP to be classified other than as a partnership for
purposes of the Code; (d) violate any law, rule, regulation or statement of
policy of any governmental body or agency having jurisdiction over the Advisees
or over their securities, or (e) be prohibited by the Company's Charter or the
Partnership Agreement of the OP.

        7.      Bank Accounts. The Advisor may establish and maintain one or
more bank accounts in the name of the Advisees or in its own name as agent for
the Advisees and may collect and deposit in and disburse from any such account,
any money on behalf of the Advisees, under such terms and conditions as the
Board of Directors may approve, provided that no funds

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in such account shall be commingled with funds of the Advisor. From time to time
and upon appropriate request, the Advisor shall render appropriate accounting of
such collections and payments to the Board of Directors and the auditors of the
Advisees.

        8.      Bond. If required by the Board of Directors, the Advisor will
maintain a fidelity bond with a responsible surety company in such amounts as
may be required by the Board of Directors, covering all members or partners
thereof together with employees and agents of the advisor handling funds of the
Advisees and investment documents or records pertaining to investments of the
Advisees. Such bonds shall inure to the benefit of the Advisees in respect of
losses from acts of such partners, employees and agents through theft,
embezzlement, fraud, negligence, error or omission or otherwise. The premiums on
such bonds shall be paid by the Advisees.

        9.      Information Furnished to Advisor. The Board of Directors shall,
at all times, keep the Advisor fully informed with regard to the investment
policies of the Advisees, including any specific types of real properties,
mortgage investments and mortgage securities desired, and any criteria or
conditions established by the Board of Directors as to whether the Advisees will
make a particular investment, the capitalization policy of the Advisees
(including the policy with regard to the incurrence of indebtedness by the
Advisees) and their intentions as to the future operations of the Advisees. In
particular, the Board of Directors shall notify the Advisor promptly of their
intention to either sell or otherwise dispose of any of the Advisees'
investments, to make any new investment, to incur any indebtedness or to issue
any additional shares of Common Stock or Preferred Stock of the Company or any
partnership interests in the OP.

        10.     Consultation and Advice. In addition to the services described
above, the Advisor shall consult with the Board of Directors and shall, at the
request of the Board of Directors of the Company, furnish advice and
recommendations with respect to other aspects of the business and affairs of the
Advisees.

        11.     Fees and Other Compensation of the Advisor.

        a.      The Advisor or its designees shall be entitled to receive from
the respective Advisees (except those payable by others as noted below) the
following fees and other compensation, which shall be paid to the Advisor by the
OP on its own behalf or on behalf of the Company:

                (i)     Acquisition Fee. The Advisor or its Affiliates shall
receive an acquisition fee (the "Acquisition Fee") of three percent (3%) of the
gross contract purchase price of each property acquired by an Advisee, including
the amount of any mortgage assumed with respect to such property, payable by the
OP on behalf of the applicable Advisee upon consummation of the investment;
provided, that, the Acquisition Fee, together with any and all Acquisition
Expenses and other acquisition fees paid to the Advisor or to any third parties,
whether or not affiliated with the Advisor or the Advisees, shall not exceed, in
the aggregate, six percent (6%) of the gross contract purchase price of a
particular property, including the amount of any mortgage assumed with respect
to such property. In the event that such acquisition fees

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and expenses, including the Acquisition Fee, exceed such limitation, the
Acquisition Fee shall be reduced by such excess amount.

                (ii)    Asset Management Fee. The Advisor or its Affiliates
shall receive an asset management fee (the "Asset Management Fee"), payable
monthly, in arrears at the end of each calendar quarter, in an amount equal to
twelve and one-half basis points (0.125%) of Average Invested Assets in the
immediately preceding quarter.

                (iii)   Property Disposition Fee. The Advisor or its Affiliates
shall receive an property disposition fee (the "Property Disposition Fee") of
three percent (3%) of the gross contract purchase price of each property sold or
otherwise disposed of by an Advisee, payable by the OP on behalf of the
applicable Advisee upon consummation of the investment; provided, that, the
Property Disposition Fee shall be payable only in respect of properties in
connection with the sale of which the Advisor provided substantial services, and
provided, further, the Property Disposition Fee, together with any and all
disposition fees and expenses paid to third parties, whether or not affiliated
with the Advisor or the Advisees, shall not exceed, in the aggregate, either (x)
six percent (6%) of the gross contract sale price of a particular property or
(y) the reasonable, customary and competitive commission paid generally for the
sale of a property in light of the size, type and location of such property. In
the event that such disposition fees and expenses, including the Property
Disposition Fee, exceed such limitation, the Property Disposition Fee shall be
reduced by such excess amount.

                (iv)    Fees for Additional Services. Subject to Section 15
below, the Advisor shall be entitled to receive compensation for any additional
services requested from time to time by the Advisees on separate agreed-upon
terms, subject to approval by a majority of the Independent Directors as being
fair and reasonable to the Company.

        b.      DEFERRED AND SUBORDINATED PAYMENTS.

                (i)     Deferred Acquisition Fee. If (x) this Agreement shall be
terminated by reason of the Change of Control of the Advisees, by the Advisees
without Cause or by the Advisor for Good Reason, and (y) the Subordinated
Incentive Advisory Fee described in subsection (ii) below is not paid to the
Advisor, then the Advisor shall receive a deferred acquisition fee (the
"Deferred Acquisition Fee") equal to the excess of six per cent (6%) of the
aggregate purchase price of all real property purchased by the Advisees through
the date of the termination of this Agreement over the aggregate of all
Acquisition Fees and other acquisition expenses paid by the Advisees to the date
of payment of the Deferred Acquisition Fee, together with interest from the date
of the acquisition of each such property through the date of payment of the
Deferred Acquisition Fee at a rate equal to six per cent (6%) per annum.

                (ii)    Subordinated Incentive Advisory Fee. Upon the
liquidation of the Company, and after and only if the stockholders of the
Company have received their Preferred Return, the Advisor shall receive a
subordinated incentive advisory fee (the "Subordinated Incentive Advisory Fee")
equal to ten per cent (10%) of the net sale proceeds from such liquidation of
the Company. For purposes of clarification, such net sale proceeds shall be
calculated net of the Preferred Return.

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        c.      Stockholder/Partner Interests Distributions. The Advisor shall
be entitled to receive distributions from the Advisees in respect of any shares
of Common Stock of the Company or partner interests of the OP which it holds,
along with the other holders of such shares or interests.

        12.     Statements. Prior to the payment of any fees hereunder, the
Advisor shall furnish to the Advisees a statement showing the computation of the
fees, if any, payable under Section 11 hereof.

        13.     Business Combination of the Company and the Advisor.

        a.      The Company shall have the option at any time, after the initial
date of effectiveness of the Prospectus upon prior written notice, during the
term of this Agreement without any consent of the Advisor, the Board of
Directors or the Company's stockholders to cause the business conducted by the
Advisor (including, in such event, all of its assets) to be acquired by or
consolidated into the Company. The Advisor and/or its members or stockholders
will receive in connection with such acquisition and in exchange for terminating
this Agreement and the release or waiver of all fees (including any fees that
have accrued during the term of this Agreement) payable under the provisions of
this Agreement until its stated termination, but not paid, that number of Shares
determined in accordance with subsection (b) below. The Company will be
obligated to pay any fees accrued under this Agreement for services rendered
through the closing of such acquisition.

        b.      The number of Shares to be issued by the Company to the Advisor
in the event of a transaction of the type described in subsection (a) above
shall be determined as follows. The Company shall first send notice (the
"Election Notice") to the Advisor of its election to proceed with such a
transaction. Next, the net income of the Advisor, for the six month period
immediately preceding the month in which the Election Notice is delivered, as
determined by an independent audit conducted in accordance with GAAP, shall be
annualized. The Advisor shall bear the cost of any such audit. Such amount shall
than be multiplied by nine-tenths (0.90) and then divided by the Funds From
Operations Per Weighted Average Share. The resulting quotient shall constitute
the number of Shares to be issued by the Company to the Advisor or its members
or stockholders, with delivery thereof and the closing of the transaction to
occur within ninety (90) days of delivery of the Election Notice. Any such
transaction will occur, if at all, only if the Board of Directors obtains a
fairness opinion from a recognized financial advisor or institution providing
valuation services to the effect that the consideration to be paid therefor is
fair, from a financial point of view, to the stockholders of the Company.

        c.      The Company shall not terminate this Agreement solely for the
purpose of avoiding such a business combination, such as in anticipation of the
listing of the Shares on a national stock exchange or their inclusion in a
national market system, including, without limitation, Nasdaq.

        14.     Expenses of the Company.

        a.      The OP, on its own behalf and on behalf of the Company, shall
pay all of the Advisees' expenses. Without limiting the foregoing, it is
specifically agreed that the

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following expenses of an Advisee shall be paid by the OP on its own behalf or on
behalf of the Company and shall not be borne by the Advisor unless such expense
is a fee or other service for which the Advisor is otherwise receiving a fee
from the Advisees:

                (i)     the cost of money borrowed by the Advisee;

                (ii)    all taxes applicable to the Advisee including, without
limitation, taxes on income and on assessments of real property;

                (iii)   fees and expenses paid to independent contractors,
unaffiliated mortgage servicers, consultants, managers and other agents employed
by or no behalf of the Advisee;

                (iv)    Acquisition Expenses and expenses directly connected
with the ownership and disposition of real property or other investments, and
with the purchase or origination of real property and mortgage investments
(including the costs of foreclosure, insurance premiums, legal services,
brokerage and sales commission, maintenance, repair and improvement of
property);

                (v)     expenses of maintaining and managing real estate equity
interests, processing and servicing mortgage and other loans and managing the
Advisee's other investments;

                (vi)    insurance coverage in connection with the business of
the Advisee (including officers', directors' and partners' liability insurance);

                (vii)   the expenses of dissolving and liquidating the Advisee
or revising, amending or modifying its organizational documents;

                (viii)  expenses connected with payments of dividends or
interest or distribution in cash or any other form made or caused to be made by
the Board of Directors to the stockholders or partners, as the case may be, of
such Advisee.

                (ix)    all expenses connected with communications to
stockholders or partners, as the case may be, and other bookkeeping and clerical
work necessary in maintaining relations with the stockholders or partners, as
the case may be, including the cost of printing and mailing certificates for
securities, proxy solicitation materials and reports to holders of the Advisee's
securities;

                (x)     the cost of any accounting, statistical or bookkeeping
equipment necessary for the maintenance of the books and records of the Advisee;

                (xi)    transfer agent's and registrar's fees and charges; and

                (xii)   other legal, accounting and auditing fees and expenses
as well as any costs incurred in connection with any litigation in the Advisee
is involved and in the examination, investigation or other proceedings conducted
by any regulatory agency with respect to the Advisee.

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        b.      The Advisor shall bear the expenses it incurs in connection with
performing its duties under the advisory agreement. These include salaries and
fringe benefits of its directors and officers and travel and other
administrative expenses of its directors or officers.

        c.      The OP shall reimburse the Advisor and its Affiliates on its own
behalf or on behalf of the Company for (i) organization and offering expenses in
an amount up to two percent (2%) of the gross offering proceeds from the
offering of the Company's shares pursuant to a registration statement filed
under form S-11 with the SEC, which include actual legal, accounting, printing
and expenses attributable to preparing such SEC registration statement,
qualification of such shares for sale in various states and filing fees incurred
by the Advisor, as well as reimbursements for marketing, salaries and direct
expenses of its employees, including, without limitation, employee benefits,
while engaged in registering and marketing such shares and other marketing and
organization costs, other than selling commissions and fees payable to the
Company's dealer manager in connection with such offering; (ii) advertising
expenses, expense reimbursements, and legal and accounting fees; (iii) the
actual cost of goods and materials used by the Advisees and obtained from
entities not affiliated with the Advisor; (iv) administrative services
(including personnel costs; provided, however, that no reimbursement shall be
made for costs of personnel to the extent that such personnel perform services
in transactions for which the Advisor receives a separate fee); (v) acquisition
expenses, which include travel and expenses related to the selection and
acquisition of properties, for goods and services provided by the Advisor; (vi)
rent, leasehold improvement costs, utilities or other administrative items
generally constituting Advisor's overhead; and (vi) expenses related to
negotiating and servicing mortgage loans. In no event shall the OP reimburse the
Advisor for any services for which the Advisor shall receive a separate fee. The
amounts charged to an Advisee for services performed shall not exceed the lesser
of (a) the actual cost of such services, or (b) the amount which such Advisee
would be required to pay to independent parties for comparable services.

        15.     Reimbursement by Advisor. For any year which the Company
qualities as a real estate investment trust under the Internal Revenue Code of
1986, as amended, the Advisor shall be obligated to reimburse the Advisees for
the amounts, if any, by which the Advisees' Total Operating Expenses paid during
the immediately prior fiscal year exceed the greater of (i) 2% of the Company's
and the OP's Average Invested Assets during the four quarters of such fiscal
year, or (ii) 25% of the Company's and the OP's net income for such fiscal year;
provided, however, that the Board of Directors (including a majority of the
Independent Directors) may require a lower amount which the Advisor shall be
obligated to reimburse the Company, upon a determination that such lower
reimbursement amount is justified in light of such unanticipated, unusual or
non-recurring factors which may have occurred within sixty (60) days after the
end of the quarter for which the excess occurred, and there shall be sent to the
stockholders of the Company a written disclosure of such determination, together
with an explanation of the factors the Board of Directors considered in arriving
at the conclusion that the higher Total Operating Expenses were justified.

        16.     Other Activities of Advisor.

        (a)     Except as set forth in this Section 16, nothing in this
Agreement shall prevent the Advisor or any of its Affiliates from engaging in
other business activities related to

                                       11

<PAGE>

real estate, mortgage investments or other investments whether similar or
dissimilar to those made by any of the Advisees or from acting as advisor to any
other person or entity having investment policies whether similar or dissimilar
to those of the Company or the OP (including other REITs or partnerships);
provided, that, before the Advisor and all Persons controlled by the Advisor may
take advantage of an opportunity for their own account or may take advantage of
an opportunity for their own account or present or recommend it to others, they
are obligated to present an investment opportunity to an Advisee if (i) such
opportunity is compatible with such Advisee's investment objectives and
policies, (ii) such opportunity is of a character which could be taken by such
Advisee, and (iii) the Advisee has the financial resources to take advantage of
such opportunity. In furtherance, and not in limitation, of the immediately
preceding sentence, neither the Advisor nor any Affiliate of the Advisor may
make any investment in multifamily property where the investment objective is
substantially similar to the investment objectives of the Advisees until such
time as seventy five percent (75%) of the total gross proceeds from the offering
of the Company's shares offered for sale pursuant to a registration statement on
form S-11 filed with the SEC, following final closing of such offering, have
been invested or committed for investment in multifamily rental properties.

        (b)     The Advisor will use its best efforts to present suitable
investments to the Advisees consistent with their investment procedures,
objectives and policies. If the Advisor or any of its Affiliates is presented
with a potential investment in a property which might be made by more than one
investment entity which it advises or manages, the decision as to the
suitability of the property for investment by a particular entity will be based
upon a review of the investment portfolio of each entity and upon factors such
as: (i) cash flow from the property; (ii) the effect of the acquisition of the
property on the diversification of each entity's portfolio; (iii) rental
payments during any renewal period; (iv) the amount of equity required to make
the investment; (v) the policies of each entity relating to leverage; (vi) the
funds of each entity available for investment; and (vii) the length of time the
funds have been available for investment and the manner in which the potential
investment can be structured by each entity. To the extent that a particular
property might be determined to be suitable for more than one investment entity,
priority generally will be given to the investment entity having uninvested
funds for the longest period of time.

        17.     Term; Termination of Agreement.

        a.      This Agreement shall continue in force for a period of one year
from the date hereof (the "Initial Term") and thereafter it may be renewed from
year to year by written consent of the parties hereto. Notwithstanding any other
provision to the contrary, this Agreement shall be terminable with or without
Cause by the Advisor or a majority of the Independent Directors at any time upon
60 days' prior written notice to the non-terminating party. In the event of the
termination of this Agreement, the Advisor will cooperate with the Advisees and
take all reasonable steps requested to assist the Advisees in making an orderly
transition of the advisory function.

        b.      If (i) this Agreement shall be terminated by reason of the
Change of Control of the Advisees, by the Advisees without Cause or by the
Advisor for Good Reason and (ii) the Incentive Advisory Fee is not paid to the
Advisor, then the Advisor shall receive a termination fee (the "Termination
Fee") equal to (x) fifteen per cent (15%) of the amount, if any,

                                       12

<PAGE>

by which ((alpha)) the appraised value of the real properties owned by the
Advisees on the date of such termination, less amounts of all indebtedness
secured by such properties, exceeds ((beta)) the dollar amount of the Preferred
Return were it to be payable to the stockholders of the Company on such date,
less (y) the amount of the Subordinated Incentive Advisory Fee due to the
Advisor, if any. The Termination Fee shall be paid in twelve (12) equal
quarterly installments starting on the date of termination.

        c.      Any amounts which may be deemed payable at the date the
obligation to pay the Termination Fee is incurred that relate to the
appreciation of the properties, on the value of which the Termination Fee is
based, (i) will be reduced by the portion of the Termination Fee otherwise
payable which relate to properties or periods with respect to which the Advisor
did not provide the Advisees substantial services and (ii) will not be due and
payable, nor bear interest, until the property to which the Termination Fee
relates is sold or refinanced.

        18.     [RESERVED]

        19.     Amendments. This Agreement shall not be changed, modified,
terminated or discharged in whole or in part except by an instrument in writing
signed by all parties hereto, or their respective successors or permitted
assigns, or otherwise as provided herein.

        20.     Assignment. This Agreement may not be assigned by the Advisor,
except to an Affiliate of the Advisor, and then only upon the consent of the
Advisees and the approval of a majority of the Independent Directors. Any
assignee of the Advisor shall be bound hereunder to the same extent as the
Advisor. This Agreement shall not be assigned by any Advisee without the written
consent of the Advisor, except to a corporation, association, trust or other
organization which is a successor to such Advisee. Such successor shall be bound
hereunder to the same extent as such Advisee. Notwithstanding anything to the
contrary contained herein, the economic rights of the Advisor hereunder,
including the right to receive all compensation hereunder, may be sold,
transferred or assigned by the Advisor without the consent of the Advisees.

        21.     Action Upon Termination. From and after the effective date of
termination of this Agreement, pursuant to Section 17 hereof, the Advisor shall
not be entitled to compensation for further service rendered hereunder but shall
be paid all compensation and reimbursed for all expenses accrued through the
date of termination within thirty (30) days of such termination. The Advisor
shall forthwith upon such termination.

        (a)     Pay over to the Advisees all moneys collected and held for the
account of such Advisees pursuant to this Agreement, after deducting any accrued
compensation and reimbursement for its expenses to which it is then entitled;

        (b)     Deliver to the Advisees a full accounting, including a statement
showing all payments collected by it and a statement of all moneys held by it,
covering the period following the date of the last accounting furnished to the
Advisees; and

        (c)     Deliver to the Advisees all property and documents of the
Advisees then in the custody of the Advisor.

                                       13

<PAGE>

        22.     Incorporation of the Charter and the Partnership Agreement. To
the extent the Charter or the Partnership Agreement impose obligations or
restrictions on the Advisor or grant the Advisor certain rights which are not
set forth in this Agreement, the Advisor shall abide by such obligations or
restrictions and such rights shall inure to the benefit of the Advisor with the
same force and effect as if they were set forth herein.

        23.     Standard of Care.

        a.      The Advisor assumes no responsibility under this Agreement other
than to render the services called for hereunder in good faith, and shall not be
responsible for any action of the Advisees in following or declining to follow
any advice or recommendations of the Advisor. Neither the advisor nor its
directors, officers, partners, members, and employees shall be liable to the
Advisees, or to the stockholders, partners or directors of the Advisees, as the
case may be, or to any successor or assignee of the Advisees, except by reason
of acts constituting bad faith, gross negligence or willful misconduct. This
shall in no way affect the standard for indemnification but shall only
constitute a standard of liability. The duties to be performed by the Advisor
pursuant to this Agreement may be performed by it or by officers, members or
directors or by Affiliates of the foregoing under the direction of the Advisor
or delegated to unaffiliated third parties under its direction.

        b.      The Advisor shall look solely to the assets of the Advisees for
satisfaction of all claims against the Advisees, and in no event shall any
stockholder, partner or director of the Advisees, as the case may be, have any
personal liability for the obligations of the Advisees under this Agreement.

        24.     Indemnification of Advisor. The Advisees shall indemnify the
Advisor and its Affiliates for any loss arising out of any of their acts or
omissions in connection with this Agreement; provided that (i) the Board of
Directors must have determined, in good faith, that such course of conduct was
in the best interests of an Advisee and did not constitute negligence or
misconduct by the Advisor or its Affiliates; (ii) such conduct was within the
scope of authority of the Advisor; and (iii) any such indemnification shall be
recoverable only from the assets of the Advisees and not from the assets of the
stockholders, partners or directors of the Advisees, as the case may be.
Notwithstanding the foregoing, the Advisor or its Affiliates shall not be
indemnified for any liability, loss or damage incurred by the Advisor or its
Affiliates in connection with any claim or settlement involving allegations that
federal or state securities laws were violated by the Advisor or its Affiliates
unless: (a) the Advisor or its Affiliates seeking indemnification are successful
in defending such action on the merits of each count involving securities law
violations; or (b) such claims have been dismissed with prejudice on the merits
by a court of competent jurisdiction; or (c) a court of competent jurisdiction
approves a settlement of the claims against the Advisor or its Affiliates
seeking indemnification involving securities law violations and finds that
indemnification of the settlement and related costs should be made; or (d)
indemnification is specifically approved by a court of competent jurisdiction in
each such case.

        25.     Notices. Any notice, report or other communication required or
permitted to be given hereunder shall be in writing, and shall be given by
delivering such notice by hand or

                                       14

<PAGE>

by certified mail, return receipt requested, postage pre-paid, at the following
addresses of the parties hereto:

        Advisees:

                The Company:
                625 Madison Avenue
                New York, New York 10022
                Attn:  Stuart J. Boesky
                       Chief Executive Officer and
                       Chairman of the Board of Directors

                With a copy to:

                Proskauer Rose LLP
                1585 Broadway
                New York, New York 10036
                Attention: Peter M. Fass, Esq.

        The OP

                625 Madison Avenue
                New York, New York 10022

                With a copy to:

                Proskauer Rose LLP
                1585 Broadway
                New York, New York 10036
                Attention: Peter M. Fass, Esq.

        The Advisor:

                625 Madison Avenue
                New York, New York 10022

                Attn:  Stuart J. Boesky,
                       Chief Executive Officer

                With a copy to:

                Proskauer Rose LLP
                1585 Broadway
                New York, New York 10036
                Attention: Peter M. Fass, Esq.

        Any party may at any time change its address for the purpose of this
Section 25 by like notice.

                                       15

<PAGE>

        26.     Headings. The section headings herein have been inserted for
convenience of reference only and shall not be construed to affect the meaning,
construction or effect of this Agreement.

        27.     No Waivers. Neither the failure nor any delay on the party of a
party to exercise any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of
the same or of any other right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrences. No waiver shall be effective unless it is in writing and
is signed by the party asserted to have granted such waiver.

        28.     Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, and all of which
shall together constitute one and the same instrument.

        29.     Entire Agreement. This Agreement contains the entire agreement
and understanding among the parties hereto with respect to the subject matter
hereof and supersedes all prior and contemporaneous agreements, understandings,
inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter hereof.

        30.     Governing Law. The provisions of this Agreement shall be
construed and interpreted in accordance with the laws of the State of New York
as at the time in effect.

                                  [END OF TEXT]

<PAGE>

        IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
signed as of the day and year first above written.

                                  ORION MULTIFAMILY INVESTMENT FUND, INC.

                                  By:
                                     ------------------------------
                                     Name:
                                     Title:

                                  ORION MULTIFAMILY LP

                                  By:   Orion Multifamily Investment Fund, Inc.,
                                             its General Partner

                                  By:
                                     ------------------------------
                                     Name:
                                     Title:

                                  ORION MULTIFAMILY LLC

                                  By:
                                     ------------------------------
                                     Name:
                                     Title:<PAGE>
                                                                    Exhibit 10.3

                                     FORM OF

                              MANAGEMENT AGREEMENT

        This management agreement (this "Management Agreement") is made and
entered into as of the ___ day of July, 2003, by and among ORION MULTIFAMILY
INVESTMENT FUND, INC., a Maryland corporation (the "Company"), ORION MULTIFAMILY
LP, a Delaware limited partnership (the "OP", and together with the Company, the
"Owner"), and ORION MULTIFAMILY MANAGEMENT, LLC, a Delaware limited liability
company (the "Manager").

        WHEREAS, the OP was organized to acquire, own, operate, lease and manage
real estate properties on behalf of the Company; and

        WHEREAS, the Company intends to continue to raise money from the sale of
its common stock to be used, net of payment of certain offering costs and
expenses, for investment in the acquisition or rehabilitation of
income-producing real estate to be acquired and held by the Company or by the OP
on behalf of the Company; and

        WHEREAS, Owner wishes to retain Manager to manage and coordinate the
leasing of the real estate properties acquired by Owner, and the Manager wishes
to be so retained, all under the terms and conditions set forth in this
Management Agreement.

        NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, do
hereby agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

        Except as otherwise specified or as the context may otherwise require,
the following terms have the respective meanings set forth below for all
purposes of this Management Agreement, and the definitions of such terms are
equally applicable both to the singular and plural forms thereof

1.1     "Affiliate" means a person who is (i) in the case of an individual, any
relative of such person, (ii) any officer, director, trustee, partner, manager,
employee or holder of ten percent (10%) or more of any class of the voting
securities of or equity interest in such person; (iii) any corporation,
partnership, limited liability company, trust or other entity controlling,
controlled by or under common control with such person; or (iv) any officer,
director, trustee, partner, manager, employee or holder of ten percent (10%) or
more of the outstanding voting securities of any corporation, partnership,
limited liability company, trust or other entity controlling, controlled by or
under common control with such person. For purposes of this definition, the term
"controls," "is controlled by," or "is under common control with" shall mean the
possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of an entity, whether through the ownership of
voting rights, by contract or otherwise.

<PAGE>

1.2     "Director" means a member of the board of directors of the Company.

1.3     "Funds From Operations" shall mean net income (computed in accordance
with GAAP), excluding gains or losses from debt restructuring and sales of
Properties, plus depreciation of real property and amortization, and after
adjustments for unconsolidated partnerships and joint ventures.

1.4     "Funds From Operations Per Weighted Average Share" shall mean the amount
equal to four (4) times the Funds From Operations per weighted average Share for
the Company for the quarter in which an Election Notice is delivered, based on
and as described in the quarterly report of the Company delivered to its
stockholders for such quarter.

1.5     "GAAP" shall mean United States generally accepted accounting
principals, consistently applied.

1.6     "Gross Revenues" means all amounts actually collected as rents or other
charges for the use and occupancy of the Properties, but shall exclude interest
and other investment income of Owner and proceeds received by Owner for a sale,
exchange, condemnation, eminent domain taking, casualty or other disposition of
assets of Owner.

1.7     "Improvements" means buildings, structures, equipment from time to time
located on the Properties and all parking and common areas located on the
Properties.

1.8     "Independent Director" shall have the meaning set forth in the by-laws
of the Company as in effect from time to time.

1.9     "Management Fees" has the meaning set forth in Section 4.1 hereof.

1.10    "Properties" means all real estate properties owned by Owner and all
tracts as yet unspecified but to be acquired by Owner containing
income-producing Improvements or on which Owner will rehabilitate
income-producing improvements.

1.11    "Share" shall mean a share of the Common Stock, par value $0.01, of the
Company.

                                   ARTICLE II.
                APPOINTMENT OF MANAGER; SERVICES TO BE PERFORMED

2.1     Appointment of Manager. Owner hereby engages and retains Manager as the
sole and exclusive manager and agent of the Properties, and Manager hereby
accepts such appointment, all on the terms and conditions hereinafter set forth,
it being understood that this Management Agreement shall cause Manager to be, at
law, Owner's agent upon the terms contained herein.

2.2     General Duties. Manager shall devote its best efforts to performing its
duties hereunder to manage, operate, maintain and lease the Properties in a
diligent, careful and vigilant manner. The services of Manager are to be of
scope and quality not less than those generally performed by professional
property managers of other similar properties in the area. Manager shall make
available to Owner the full benefit of the judgment, experience and advice of
the members of

                                        2

<PAGE>

Manager's organization and staff with respect to the policies to be pursued by
Owner relating to the operation and leasing of the Properties.

2.3     Specific Duties. Manager's duties include the following:

        (a) Lease Obligations. Manager shall perform all duties of the landlord
            under all leases insofar as such duties relate to operation,
            maintenance, and day-to-day management. Manager shall also provide
            or cause to be provided, at Owner's expense, all services normally
            provided to tenants of like premises, including where applicable
            and without limitation, gas, electricity or other utilities
            required to be furnished to tenants under leases, normal repairs
            and maintenance, and cleaning, and janitorial service. Manager
            shall arrange for and supervise the performance of all
            installations and improvements in space leased to any tenant which
            are either expressly required under the terms of the lease of such
            space or which are customarily provided to tenants.

        (b) Maintenance. Manager shall cause the Properties to be maintained in
            the same manner as similar properties in the area. Manager's duties
            and supervision in this respect shall include, without limitation,
            cleaning of the interior and the exterior of the Improvements and
            the public common areas on the Properties and the making and
            supervision of repair, alterations, and decoration of the
            Improvements, subject to and in strict compliance with this
            Management Agreement and any applicable leases. Construction and
            rehabilitation activities undertaken by the Manager, if any, will be
            limited to activities related to the management, operation,
            maintenance, and leasing of the Property (e.g., repairs,
            renovations, and leasehold improvements).

        (c) Leasing Functions. Manager shall coordinate the leasing of the
            Properties and shall negotiate and use its best efforts to secure
            executed leases from qualified tenants, and to execute same on
            behalf of Owner, if requested, for available space in the
            Properties, such leases to be in form and on terms approved by Owner
            and Manager, and to bring about complete leasing of the Properties.
            Manager shall be responsible for the hiring of all leasing agents,
            as necessary for the leasing of the Properties, and to otherwise
            oversee and manage the leasing process on behalf of the Owner.

        (d) Notice of Violations. Manager shall forward to Owner promptly upon
            receipt all notices of violation or other notices from any
            governmental authority, and board of fire underwriters or any
            insurance company, and shall make such recommendations regarding
            compliance with such notice as shall be appropriate.

        (e) Personnel. Any personnel hired by Manager to maintain, operate and
            lease the Property shall be the employees or independent contractors
            of Manager and not of the Owner. Manager shall use due care in the
            selection and supervision of such employees or independent
            contractors. Manager shall be responsible for the preparation of and
            shall timely file all payroll tax reports and timely make payments
            of all withholding and other payroll taxes with respect to each
            employee.

        (f) Utilities and Supplies. Manager shall enter into or renew contracts
            for electricity, gas, steam, landscaping, fuel, oil, maintenance and
            other services as are customarily

                                        3

<PAGE>

            furnished or rendered in connection with the operation of similar
            rental property in the area.

        (g) Expenses. Manager shall analyze all bills received for services,
            work and supplies in connection with the maintaining and operating
            the Properties, pay all such bills, and, if requested by Owner, pay,
            when due, utility and water charges, sewer rent and assessments, any
            applicable taxes, including, without limitation, any real estate
            taxes, and any other amount payable in respect to the Properties.
            All bills shall be paid by Manager within the time required to
            obtain discounts, if any. Owner may from time to time request that
            Manager forward certain bills to Owner promptly after receipt, and
            Manager shall comply with any such request. It is understood that
            the payment of real property taxes and assessment and insurance
            premiums will be paid out of the Account (as hereinafter defined) by
            Manager. All expenses shall be billed at net cost (i.e., less all
            rebates, commissions, discounts and allowances, however designed).

        (h) Monies Collected. Manager shall collect all rent and other monies
            from tenants and any sums otherwise due Owner with respect to the
            Properties in the ordinary course of business. In collecting such
            monies, Manager shall inform tenants of the Properties that all
            remittances are to be in the form of a check or money order. Owner
            authorizes Manager to request, demand, collect and receipt for all
            such rent and other monies and to institute legal proceedings in the
            name of Owner for the collection thereof and for the dispossession
            of any tenant in default under its lease.

        (i) Banking Accommodations. Manager shall establish and maintain a
            separate checking account (the "Account") for funds relating to the
            Properties. All monies deposited from time to time in the Account
            shall be deemed to be trust funds and shall be and remain the
            property of Owner and shall be withdrawn and disbursed by Manager
            for the account of Owner only as expressly permitted by this
            Management Agreement for the purposes of performing the obligations
            of Manager hereunder. No monies collected by Manager on Owner's
            behalf shall be commingled with funds of Manager. The Account shall
            be maintained, and monies shall be deposited therein and withdrawn
            therefrom, in accordance with the following:

                        (i)     All sums received from rents and other income
                from the Properties shall be promptly deposited by Manager in
                the Account. Manager shall have the right to designate two or
                more persons who shall be authorized to draw against the
                Account, but only for purposes authorized by this Management
                Agreement.

                        (ii)    All sums due to Manager hereunder, whether for
                compensation, reimbursement for expenditures, or otherwise, as
                herein provided, shall be a charge against the operating
                revenues of the Properties and shall be paid and/or withdrawn by
                Manager from the Account prior to the making of any other
                disbursements therefrom.

                        (iii)   By the 30th day of the first month following
                each calendar quarter, Manager shall forward to Owner net
                operating proceeds from the preceding

                                        4

<PAGE>

                quarter, retaining at all times, however a reserve of $5,000, in
                addition to any amounts otherwise provided in the budget.

        (j) Tenant Complaints. Manager shall maintain business-like relations
            with the tenants of the Properties.

        (k) Ownership Agreements. Manager has received copies of the Agreement
            of Limited Partnership of the OP and the constitutive documents of
            the Company (collectively, the "Ownership Agreements") and is
            familiar with the terms thereof. Manager shall use reasonable care
            to avoid any act or omission which, in the performance of its duties
            hereunder, shall in any way conflict with the terms of the Ownership
            Agreements.

        (l) Signs. Manager shall place and remove, or cause to be placed and
            removed, such signs upon the Properties as Manager deems
            appropriate, subject, however, to the terms and conditions of the
            leases and to any applicable ordinances and regulations.

2.4     Approval of Leases, Contracts, Etc. In fulfilling its duties to the
Owner, Manager may and hereby is authorized to enter into any leases, contracts
or agreements on behalf of the Owner in the ordinary course of the management,
operation, maintenance and leasing of the Property.

2.5     Accounting, Records and Reports.

        (a) Records. Managers shall maintain all office records and books of
            account and shall record therein, and keep copies of, each invoice
            received from services, work and supplies ordered in connection with
            the maintenance and operation of the Properties. Such records shall
            be maintained on a double entry basis. Owner and persons designated
            by Owner shall at all reasonable time have access to and the right
            to audit and make independent examinations of such records, books
            and accounts and all vouchers, files and all other material
            pertaining to the Properties and this Management Agreement, all of
            which Manager agrees to keep safe, available and separate from any
            records not pertaining to the Properties, at a place recommended by
            Manager and approved by Owner.

        (b) Quarterly Reports. On or before the 30th day of the first month
            following each calendar quarter for which such report or statement
            is prepared and during the term of this Management Agreement,
            Manager shall prepare and submit to Owner the following reports and
            statements:

                (i)     Rental collection record;

                (ii)    Quarterly operating statement;

                (iii)   Copy of cash disbursements ledger entries for such
                        period, if requested;

                (iv)    Copy of cash receipts ledger entries for such period, if
                        requested;

                                        5

<PAGE>

                (v)     The original copies of all contracts entered into by
                        Manager on behalf of Owner during such period, if
                        requested; and

                (vi)    Copy of ledger entries for such period relating to
                        security deposits maintained by Manager, if requested.

        (c) Budgets and Leasing Plans. Not later than November 15 of each
            calendar year, Manager shall prepare and submit to Owner for its
            approval an operating budget and a marketing and leasing plan on the
            Properties for the calendar year immediately following such
            submission. The budget and leasing plan shall be in the form of the
            budget and plan approved by Owner prior to the date thereof. As
            often as reasonably necessary during the period covered by any such
            budget, Manager may submit to Owner for its approval an updated
            budget or plan incorporating such changes as shall be necessary to
            reflect cost over-runs and the like during such period. If Owner
            does not disapprove any such budget within 30 days after receipt
            thereof by Owner, such budget shall be deemed approved. If Owner
            shall disapprove any such budget or plan, it shall so notify Manager
            within said 30-day period and explain the reasons therefor. Manager
            will not incur any costs other than those estimated in any budget
            except for:

                (i)     maintenance or repair costs under $5,000;

                (ii)    costs incurred in emergency situations in which action
                        is immediately necessary for the preservation or safety
                        of the Property, or for the safety of occupant or other
                        person (or to avoid the suspension of any necessary
                        service of the Property);

                (iii)   expenditures for real estate taxes and assessment; and

                (iv)    maintenance supplies calling for an aggregate purchase
                        price less than $25,000.

        (d) Returns Required by Law. Manager shall execute and file when due all
            forms, reports, and returns required by law relating to the
            employment of its personnel.

        (e) Notices. Promptly after receipt, Manager shall deliver to Owner all
            notices, from any tenant, or any governmental authority, that are
            not a routine nature. Managers shall also report expeditiously to
            Owner notice of any extensive damage to any part of the Properties.

2.6     Subcontracting. Notwithstanding anything to the contrary contained in
this Agreement, the Manager may subcontract any of its duties hereunder, without
the consent of the Owner being required, for a fee that may be less than the
Management Fees paid hereunder. In the event that the Manager does so contract
any its duties hereunder, such fees payable to such third parties may, at the
instruction of the Manager, deducted from the monthly Management Fee payable to
the Manager hereunder and paid by the Owner to such parties, or paid directly by
the Manager to such parties, in its discretion.

                                        6

<PAGE>

                                  ARTICLE III.
                                    EXPENSES

3.1     Owner's Expenses. Except as otherwise specifically provided, all costs
and expenses incurred hereunder by Manager in fulfilling its duties to Owner
shall be for the account of and on behalf of Owner. Such costs and expenses may
include reasonable wages and salaries and other employee-related expenses of all
on-site and off-site employees of Manager who are engaged in the operation,
management, maintenance and leasing or access control of the Properties,
including taxes, insurance and benefits relating to such employees, and legal,
travel and other out-of-pocket expenses which are directly related to the
management of specific Properties. All costs and expenses for which Owner is
responsible under this Management Agreement shall be paid by Manager out of the
Account. In the event said account does not contain sufficient funds to pay all
said expenses, Owner shall fund all sums necessary to meet such additional costs
and expenses.

3.2     Manager's Expenses. Manager shall, out of its own funds, pay all of its
general overhead and administrative expenses.

                                   ARTICLE IV.
                             MANAGER'S COMPENSATION

4.1     Management Fees. Manager shall provide the services described in Article
II in return for fees (the "Management Fees"), including all rent-up, leasing,
and re-leasing fees and bonuses paid to any person, which shall be payable by
the OP on a monthly basis, and shall equal 5% of Gross Revenues. Notwithstanding
the foregoing, Manager may be entitled to receive higher fees in the event
Manager can demonstrate to the satisfaction of the Board of Directors (including
a majority of the Independent Directors) through empirical data that a higher
competitive fee is justified for the services rendered and the type of Property
managed. As described in section 2.6 above, in the event that Manager properly
engages one or more third parties to perform the services described herein, the
fees payable to such parties for such services will be deducted from the monthly
Management Fees payable by the OP to Manager, or paid directly by Manager, at
Manager's option. Manager's compensation under this Section 4.1 shall apply to
all renewals, extensions or expansions of leases which Manager has originally
negotiated.

4.2     Additional Fees. In the event that the Manager provides services other
than those specified herein, the OP shall pay to Manager a monthly fee equal to
no more than that which the OP would pay to a third party that is not an
Affiliate of the Owner or the Manager to provide such services.

4.3     Audit Adjustment. If any audit of the records, books or accounts
relating to the Properties discloses an overpayment or underpayment of
Management Fees, Owner or Manager shall promptly pay to the other party the
amount of such overpayment or underpayment, as the case may be. If such audit
discloses an overpayment of Management Fees for any fiscal year of more than the
correct Management Fees for such fiscal year, Manager shall bear the cost of
such audit.

                                        7

<PAGE>

                                   ARTICLE V.
                          INSURANCE AND INDEMNIFICATION

5.1     Insurance to be Carried.

        (a) Manager shall obtain and keep in full force and effect insurance on
            the Properties against such hazards as Owner and Manager shall deem
            appropriate, but in any event insurance sufficient to comply with
            the leases and the Ownership Agreements shall be maintained. All
            liability policies shall provide sufficient insurance satisfactory
            to both Owner and Manager and shall contain waivers of subrogation
            for the benefit of Manager.

        (b) Manager shall obtain and keep in full force and effect, in
            accordance with the laws of the state in which each Property is
            located, employer's liability insurance applicable to and covering
            all employees of Manager at the Properties and all persons engaged
            in the performance of any work required hereunder, and Manager shall
            furnish Owner certificates of insurers naming Owner as a co-insured
            and evidencing that such insurance is in effect. If any work under
            this Management Agreement is subcontracted as permitted herein,
            Manager shall include in each subcontract a provision that the
            subcontractor shall also furnish Owner with such a certificate.

5.2     Cooperation with Insurers. Manager shall cooperate with and provide
reasonable access to the Properties to representatives of insurance companies
and insurance brokers or agents with respect to insurance which is in effect or
for which application has been made. Manager shall use its best efforts to
comply with all requirements of insurers.

5.3     Accidents and Claims. Manager shall promptly investigate and shall
report in detail to Owner all accidents, claims for damage relating to the
ownership, operation or maintenance of the Properties, and any damage or
destruction to the Properties and the estimated costs of repair thereof, and
shall prepare for approval by Owner all reports required by an insurance company
in connection with any such accident, claim, damage, or destruction. Such
reports shall be given to Owner promptly and any report not so given within 10
days after the occurrence of any such accident, claim, damage or destruction
shall be noted in the monthly report delivered to Owner pursuant to section
2.5(b). Manager is authorized to settle any claim against an insurance company
arising out of any policy and, in connection with such claim, to execute proofs
of loss and adjustments of loss and to collect and receipt for loss proceeds.

5.4     Indemnification. Manager shall hold Owner harmless from and indemnify
and defend Owner against any and all claims or liability for any injury or
damage to any person or property whatsoever for which Manager is responsible
occurring in, on, or about the Properties, including, without limitation, the
Improvements when such injury or damage shall be caused by the negligence of
Manager, its agents, servants, or employees, except to the extent that Owner
recovers insurance proceeds with respect to such matter. Owner will indemnify
and hold Manager harmless against all liability for injury to persons and damage
to property caused by Owner's negligence and which did not result from the
negligence of misconduct of Manager, except to the extent Manager recovers
insurance proceeds with respect to such matter.

                                        8

<PAGE>

                                   ARTICLE VI.
                                TERM, TERMINATION

6.1     Term. This Management Agreement shall commence on the date first above
written and shall continue until terminated in accordance with the earliest to
occur of the following:

                (a) One year from the date of the commencement of the term
                    hereof. However, this Management Agreement will be
                    automatically extended for an additional one year period at
                    the end of each year unless any party gives sixty (60) days
                    written notice to the others of its intention to terminate
                    this Management Agreement; or

                (b) Immediately upon the occurrence of any of the following:

                        (i) A decree or order is rendered by a court having
                    jurisdiction (A) adjudging Manager as bankrupt or insolvent,
                    or (B) approving as properly filed a petition seeking
                    reorganization, readjustment, arrangement, composition or
                    similar relief for Manager under the federal bankruptcy laws
                    or any similar applicable law or practice, or (C) appointing
                    a receiver or liquidator or trustee or assignee in
                    bankruptcy or insolvency of Manager or a substantial part of
                    the property of Manager, or for the winding up or
                    liquidation of its affairs, or

                        (ii) Manager (A) institutes proceedings to be
                    adjudicated a voluntary bankrupt or an insolvent, (B)
                    consents to the filing of a bankruptcy proceeding against
                    it, (C) files a petition or answer or consent seeking
                    reorganization, readjustment, arrangement, composition or
                    relief under any similar applicable law or practice, (D)
                    consents to the filing of any such petition, or to the
                    appointment of a receiver or liquidator or trustee or
                    assignee in bankruptcy or insolvency for it or for a
                    substantial part of its property, (E) makes an assignment
                    for the benefit of creditors, (F), is unable to or admits in
                    writing its inability to pay its debts generally as they
                    become due unless such inability shall be the fault of
                    Owner, or (G) takes corporate or other action in furtherance
                    of any of the aforesaid purposes.

                (c) Upon written notice from the Owner in the event that the
                    Manager commits an act of gross negligence or willful
                    misconduct in the performance of its duties hereunder.

       Upon termination, the obligations of the parties hereto shall cease,
provided that Manager shall comply with the provisions hereof applicable in the
event of termination and shall be entitled to receive all compensation which may
be due Manager hereunder up to the date of such termination, and provided,
further, that if this Management Agreement terminates pursuant to clauses (b) or
(c) above, Owner shall have other remedies as may be available at law or in
equity.

6.2     Manager's Obligations after Termination. Upon the termination of this
Management Agreement, Manager shall have the following duties:

                (a) Manager shall deliver to Owner, or its designee, all books
                    and records with respect to the Properties.

                (b) Manager shall transfer and assign to Owner, or its designee,
                    all service contracts and personal property relating to or
                    used in the operation and maintenance of the Properties,
                    except personal property paid for and owned by Manager.
                    Manager

                                        9

<PAGE>

                    shall also, for a period of sixty (60) days immediately
                    following the date of such termination, make itself
                    available to consult with and advise Owner, or its designee,
                    regarding the operation, maintenance and leasing of the
                    Properties.

                (c) Manager shall render to Owner an accounting of all funds of
                    Owner in its possession and shall deliver to Owner a
                    statement of Management Fees claimed to be due Manager and
                    shall cause funds of Owner held by Manager relating to the
                    Properties to be paid to Owner or its designee.

                                   ARTICLE VI
              BUSINESS COMBINATION OF THE COMPANY AND THE MANAGER.

7.1     The Company shall have the option at any time, after the initial date of
effectiveness of the Prospectus upon prior written notice, during the term of
this Agreement without any consent of the Manager, the board of directors of the
Company or the Company's stockholders to cause the business conducted by the
Manager (including, in such event, all of its assets) to be acquired by or
consolidated into the Company. The Manager and/or its members or stockholders
will receive in connection with such acquisition and in exchange for terminating
this Agreement and the release or waiver of all fees (including any fees that
have accrued during the term of this Agreement) payable under the provisions of
this Agreement until its stated termination, but not paid, that number of Shares
determined in accordance with Section 7.2 below below. The Company will be
obligated to pay any fees accrued under this Agreement for services rendered
through the closing of such acquisition.

7.2     The number of Shares to be issued by the Company to the Manager in the
event of a transaction of the type described in Section 7.1 above shall be
determined as follows. The Company shall first send notice (the "Election
Notice") to the Manager of its election to proceed with such a transaction.
Next, the net income of the Manager, for the six month period immediately
preceding the month in which the Election Notice is delivered, as determined by
an independent audit conducted in accordance with GAAP, shall be annualized. The
Manager shall bear the cost of any such audit. Such amount shall than be
multiplied by nine-tenths (0.90) and then divided by the Funds From Operations
Per Weighted Average Share. The resulting quotient shall constitute the number
of Shares to be issued by the Company to the Manager or its members or
stockholders, with delivery thereof and the closing of the transaction to occur
within ninety (90) days of delivery of the Election Notice. Any such transaction
will occur, if at all, only if the board of directors of the Company obtains a
fairness opinion from a recognized financial advisor or institution providing
valuation services to the effect that the consideration to be paid therefor is
fair, from a financial point of view, to the stockholders of the Company.

7.3     The Company shall not terminate this Agreement solely for the purpose of
avoiding such a business combination, such as in anticipation of the listing of
the Shares on a national stock exchange or their inclusion in a national market
system, including, without limitation, NASDAQ.

                                       10

<PAGE>

                                  ARTICLE VIII.
                                  MISCELLANEOUS

8.1     Notices. All notices, approvals, consents and other communications
hereunder shall be in writing, and, except when receipt is required to start the
running of a period of time, shall be deemed given when delivered in person or
on the fifth day after its mailing by either party by registered or certified
United States mail, postage prepaid and return receipt requested, to the other
party, at the addresses set forth after their respect name below or at such
different addresses as either party shall have theretofore advised the other
party in writing in accordance with this Section 8.1.

        Owner:      Orion Multifamily LP
                    c/o Orion Multifamily Investment Fund, Inc.
                    625 Madison Avenue
                    New York, New York 10022
                    Attn: Stuart J. Boesky
                    Chief Executive Officer and
                    Chairman of the Board of Directors

                    With a copy to:

                    Proskauer Rose LLP
                    1585 Broadway
                    New York, New York 10036
                    Attention: Peter M. Fass, Esq.

        Manager:    Orion Multifamily Management, LLC
                    New York, New York 10022
                    Attn: Stuart J. Boesky
                    Chief Executive Officer

                    With a copy to:

                    Proskauer Rose LLP
                    1585 Broadway
                    New York, New York 10036
                    Attention: Peter M. Fass, Esq.

8.2     Governing Law. This Management Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

8.3     Assignment. Without derogating from Section 2.6 hereof, this Management
Agreement may not be assigned by the Manager, except to an Affiliate of the
Manager, and then only upon the consent of the Owner and the approval of a
majority of the Independent Directors. Any assignee of the Manager shall be
bound hereunder to the same extent as the Manager. This Agreement shall not be
assigned by either Owner without the written consent of the Manager, except to a
corporation, association, trust or other organization which is a successor to
such Owner. Such successor shall be bound hereunder to the same extent as such
Owner. Notwithstanding anything to the contrary contained herein, the economic
rights of the Manager hereunder, including the right to receive all compensation
hereunder, may be sold, transferred or assigned by the Manager without the
consent of the Owners.

                                       11

<PAGE>

8.4     No Waiver. Neither the failure nor any delay on the party of a party to
exercise any right, remedy, power or privilege under this Management Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of
the same or of any other right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrences. No waiver shall be effective unless it is in writing and
is signed by the party asserted to have granted such waiver.

8.5     Amendments. This Management Agreement may be amended only by an
instrument in writing signed by the party against whom enforcement of the
amendment is sought.

8.6     Headings. The headings of the various subdivisions of this Management
Agreement are for reference only and shall not define or limit any of the terms
or provisions hereof.

8.7     Counterparts. This Management Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and it shall not be
necessary in making proof of this Management Agreement to produce or account for
more than one such counterpart.

8.8     Entire Agreement. This Management Agreement contains the entire
agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter hereof.

8.9     Disputes. If there shall be a dispute between Owner and Manager relating
to this Management Agreement resulting in litigation, the prevailing party in
such litigation shall be entitled to recover from the other party to such
litigation such amount as the court shall fix as reasonable attorneys' fees.

8.10    Activities of Manager. The obligations of Manager pursuant to the terms
and provisions of this Management Agreement shall not be construed to preclude
Manager from engaging in other activities or business ventures, whether or not
such other activities or ventures are in competition with the Owner or the
business of Owner.

8.11    Independent Contractor. Manager and Owner shall not be construed as
joint venturers or partners of each other pursuant to this Management Agreement,
and neither shall have the power to bind or obligate the other except as set
forth herein. In all respects, the status of Manger to Owner under this
Management Agreement is that of an independent contractor.

                        [Signatures appear on next page]

                                       12

<PAGE>

        IN WITNESS WHEREOF, the parties have executed this Management Agreement
as of the date first above written.

                                   ORION MULTIFAMILY INVESTMENT FUND, INC.

                                   By:
                                      --------------------------------
                                      Name:
                                      Title:

                                   ORION MULTIFAMILY LP

                                   By:  Orion Multifamily Investment Fund, Inc.,
                                                  its General Partner

                                   By:
                                      --------------------------------
                                      Name:
                                      Title:

                                   ORION MULTIFAMILY MANAGEMENT, LLC

                                   By:
                                      --------------------------------
                                      Name:
                                      Title:

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