Document:

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Exhibit 10.14

              AMENDED, RESTATED AND CONSOLIDATED SECURITY AGREEMENT

      THIS AGREEMENT entered into as of the 14th day of March, 2002, by and
between BALANCED CARE TENANT (MT), INC., a Delaware corporation, with its
principal place of business at 1215 Manor Drive, Mechanicsburg, Pennsylvania
17055 (hereinafter referred to as the "Debtor"), and MEDITRUST ACQUISITION
COMPANY II LLC, a Delaware limited liability company with its principal place of
business at 197 First Avenue, Needham Heights, Massachusetts 02494 (hereinafter,
the "Secured Party").

                               W I T N E S S E T H

      WHEREAS, the Secured Party is the holder of the landlord's interest under
those certain twelve (12) Facility Lease Agreements more particularly described
in EXHIBIT A attached hereto (collectively, the "Existing Leases");

      WHEREAS, the Debtor, Affiliates of the Debtor, the Secured Party and La
Quinta TRS, Inc. are parties to that certain Option, Settlement and Release
Agreement dated February 6, 2002 (the "Option Agreement"), pursuant to which,
among other things, (i) the Secured Party and the Debtor agreed to amend,
restate and consolidate the Existing Leases pursuant to that certain Master
Facility Lease Agreement of even date herewith to be executed simultaneously
herewith by and between the Secured Party and the Debtor (the "Lease") and (ii)
the Secured Party and the Debtor agreed to execute and deliver this Agreement as
additional security for the Obligations (as defined under the Lease);

      WHEREAS, all of the Third Party Lessees (as defined under the Option
Agreement) have been merged into the Debtor with the Debtor being the surviving
entity (collectively, the "Mergers");

      WHEREAS, pursuant to the Option Agreement, Balanced Care at Stafford, Inc.
(the "Potomac Point Lessee") has assigned its interest under the Potomac Point
Lease Documents (as defined in the Option Agreement) to the Debtor and the
Debtor has assumed the Potomac Point Lessee's obligations under the Potomac
Point Lease Documents (the "Potomac Point Assignment");

      WHEREAS, as a consequence of the Mergers and the Potomac Point Assignment,
the Debtor is the holder of the tenant's interest under the Existing Leases and
is party to and bound by
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the agreements listed on EXHIBIT B attached hereto (collectively, the "Existing
Security Agreements"), which Existing Security Agreements provide additional
security for the obligations under the Existing Leases; and

      WHEREAS, in connection with the amendment, restatement and consolidation
of the Existing Security Agreements, the Secured Party and the Debtor have
agreed that the Existing Security Agreements be amended, restated and
consolidated;

      NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by the parties hereto, which consideration
includes (a) the Secured Party's agreement to enter into the Option Agreement
and grant the Option Right (as defined under the Option Agreement) to the Buyer,
(b) the Secured Party's agreement to the "IPC/BCC Release" and the "BCC Release"
(as such terms are defined under the Option Agreement) and (c) the Secured
Party's agreement, notwithstanding the Existing Defaults (as defined under the
Option Agreement), to consent to the Stock Transfers (as defined under the
Option Agreement), the parties hereto agree to amend and restate the Existing
Security Agreements in their entirety and to that end agree that this Amended,
Restated and Consolidated Security Agreement shall be deemed effective as of the
date hereof, shall supersede the Existing Security Agreements in their entirety
and shall be referred to herein as the "Agreement". The parties hereto further
agree as follows:

                      ARTICLE 1. GRANT OF SECURITY INTEREST

      1.1   To secure the prompt, punctual and faithful performance of all and
each of the present and future Obligations, the Debtor hereby grants to the
Secured Party a continuing first priority security interest in and to, and
assigns to the Secured Party, all of the Debtor's right, title and interest in
the following properties, assets and rights, all wherever located and whether
now existing or hereafter acquired or arising (all of which, together with any
other property in which the Secured Party may in the future be granted a
security interest pursuant hereto, is referred to hereinafter as the
"Collateral"): (a) all Accounts and all Receivables; (b) all Inventory; (c) all
General Intangibles; (d) all Equipment; (e) all Fixtures; (f) all Goods; (g) all
Tangible Personal Property (as defined under the Lease); (h) all Chattel Paper;
(i) all books, records, ledgers, print-

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outs, papers, data, file materials and information relating to the Leased
Property (as defined under the Lease), the Collateral, any account debtors in
respect thereof and/or to the operation of the Debtor's business, and all rights
of access to such books, records, ledgers, print-outs, papers, file materials
and information, and all property in which such books, records, ledgers,
print-outs, data, file materials and information are stored, recorded, and
maintained; (j) all Instruments, Documents of Title, Documents, policies and
certificates of insurance, Securities, deposits, Deposit Accounts, Letters of
Credit, money, cash or other property; (k) all federal, state, and local tax
refunds and/or abatements to which the Debtor is, or becomes entitled, no matter
how or when arising, including, but not limited to any loss carryback tax
refunds; (l) all trade secrets, computer programs, customer lists, patient
lists, manuals, assignments of patents and patents pending, developmental ideas
and concepts, and all papers, drawings, blueprints, sketches and documents
relating to all of the foregoing and/or relating to the operation of the
Debtor's business and/or the Collateral; (m) all Letter of Credit Rights; and
(n) all insurance proceeds, refunds and premium rebates, whether any of such
proceeds, refunds and premium rebates arise out of any of the foregoing or
otherwise; together with (i) all security pledged, assigned, hypothecated or
granted to or held by the Debtor to secure any of the foregoing, (ii) all
proceeds of the foregoing, (iii) General Intangibles arising out of the Debtor's
rights in any Goods, the sale of which gave rise thereto, (iv) any property
received in payment, settlement or compromise of any Account or Receivable, (v)
all guarantees, endorsements and indemnifications on, or of, any of the
foregoing, (vi) all rights, remedies and privileges pertaining to any of the
foregoing, (vii) all powers of attorney for the execution of any evidence of
indebtedness or security or other writing in connection therewith, (viii) all
evidences of the filing of financing statements and other statements and the
registration of other instruments in connection therewith and amendments thereto
and (ix) all of the Debtor's rights to use, in perpetuity, in connection with
the operation of the Facilities, the following names, as well as any other names
similar thereto and the good will of the Debtor with respect thereto: [PLEASE
PROVIDE LIST OF ALL NAMES USED IN CONNECTION WITH OPERATION OF THE FACILITIES]

      1.2   The Debtor shall execute, upon request of the Secured Party, all
such instruments as may be required by the Secured Party with respect to the
perfection of the security interests

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granted herein. In addition, at the Secured Party's request, the Debtor shall
use commercially reasonable efforts to cause its depository bank, with respect
to Deposit Accounts, or issuer bank or other nominated person, with respect to
Letter of Credit Rights, to execute a control agreement that requires the
depository bank to act on the Secured Party's instruction, or the issuer bank of
any letter of credit or other nominated person to consent to an assignment of
proceeds under Section 5-114 of the UCC, or any other document or action
necessary to perfect the Secured Party's security interest in Deposit Accounts
or Letter of Credit Rights. A carbon, photographic, or other reproduction of
this Agreement or of any financing statement or other instrument prepared or
executed pursuant to this Section 1.2 shall be sufficient for filing to perfect
the security interests granted herein, to the extent permitted under applicable
law.

                         ARTICLE 2. CERTAIN DEFINITIONS

      All capitalized terms not defined herein shall have the same meanings
ascribed to such terms under the Lease.

      As herein used, the following terms have the following meanings:

      2.1   The term "Accounts" shall have the same meaning ascribed to such
term under the UCC and shall include, without limitation, all payments to be
made under (and the rights to receive payments under) Residence Agreements and
Health-care-insurance receivables.

      2.2   The term "Chattel Paper" shall have the same meaning ascribed to
such term under the UCC, including, without limitation, Electronic Chattel Paper
and Tangible Chattel Paper.

      2.3   The term "Collateral" shall have the same meaning ascribed to such
term in Section 1.1.

      2.4   The term "Debtor" shall have the same meaning ascribed to such term
in the preamble of this Agreement.

      2.5   The term "Deposit Account" shall have the same meaning ascribed to
such term under the UCC.

      2.6   The term "Documents" shall have the same meaning ascribed to such
term under the UCC.

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      2.7   The term "Documents of Title" shall have the same meaning ascribed
to such term under the UCC.

      2.8   The term "Electronic Chattel Paper" shall have the same meaning
ascribed under the UCC.

      2.9   The term "Equipment" shall have the same meaning ascribed to such
term under the UCC.

      2.10  The term "Event of Default" shall have the same meaning ascribed to
such term in Article 5 of this Agreement.

      2.11  The term "Fixtures" shall have the same meaning ascribed to such
term under the UCC.

      2.12  The term "General Intangibles" shall have the same meaning ascribed
to such term under the UCC.

      2.13  The term "Goods" shall have the same meaning ascribed to such term
under the UCC.

      2.14  The term "Health-Care-Insurance Receivable" shall have the same
meaning ascribed to such term under the UCC.

      2.15  The term "Instruments" shall have the same meaning ascribed to such
term under the UCC.

     2.16 The term "Inventory" shall have the same meaning ascribed to such term
under the UCC.

      2.17  The term "Lease" shall have the same meaning ascribed to such term
in the preamble of this Agreement.

      2.18  The term "Letter of Credit Rights" shall have the same meaning
ascribed to such term under the UCC.

      2.19  The term "Letters of Credit" shall mean all letters of credit naming
Debtor as a beneficiary.

      2.20  The term "Liable Person" shall have the same meaning ascribed to
such term in Section 7.3.

      2.21  The term "Proceeds" shall have the meaning ascribed to such term
under the UCC.

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      2.22  The term "Receivables" shall mean collectively, all (i) Instruments,
Documents, Accounts, Proceeds, General Intangibles and Chattel Paper and (ii)
rights to payment for goods sold or leased or services rendered by Debtor or any
other party, whether now in existence or arising from time to time hereafter and
whether or not yet earned by performance, including, without limitation,
obligations evidenced by an account, note, contract, security agreement, chattel
paper, or other evidence of indebtedness.

      2.23  The term "Receivables Collateral" refers to the Debtor's Accounts,
Deposit Accounts, Receivables, Chattel Paper, Instruments, Documents of Title,
Documents, Securities, Letters of Credit, Letter of Credit Rights and any other
rights to payment now held or in which the Debtor has an interest, or hereafter
acquired, or in which the Debtor obtains an interest.

      2.24  The term "Secured Party" shall have the meaning ascribed to such
term in the preamble of this Agreement.

      2.25  The term "Secured Party's Rights and Remedies" shall have the
meaning ascribed to such term in Section 6.4.

      2.26  The term "Securities" shall have the same meaning ascribed to such
term under the UCC.

      2.27  The term "Tangible Chattel Paper" shall have the same meaning
ascribed to such term under the UCC.

      2.28  The term "UCC" shall mean the Uniform Commercial Code as adopted in
the Commonwealth of Massachusetts.

              ARTICLE 3. REPRESENTATIONS, WARRANTIES AND COVENANTS

      3.1   Subject to Section 6.1.2 of the Lease, the Debtor is, and shall
hereafter remain, the owner of the Collateral free and clear of all Liens and
charges with the exceptions of (a) the security interests created herein and (b)
the security interests and other encumbrances, if any, listed in Schedule 3.1
attached hereto and incorporated herein by reference as a material part hereof.

      3.2   The Collateral is and shall be kept and maintained solely at the
following locations (hereinafter collectively

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referred to as the "Premises"): the Leased Property and/or the Debtor's
Principal Place of Business.

      3.3   The Debtor, from time to time, upon reasonable notice and during
normal business hours (except in the case of an emergency), shall accord the
Secured Party and the Secured Party's representatives with such access, to all
properties owned by or over which the Debtor has control, as the Secured Party
and its representatives may reasonably require and in connection with such
access, the Debtor shall permit the Secured Party and such representatives, to
examine, inspect, copy, access and make extracts from any and all of the
Collateral, including, but not limited to, any and all of the Debtor's books,
records, electronically stored data, recorded data (regardless of the medium of
recording), papers, file materials and information (including, without
limitation, all records relating to Accounts and Receivables, the Debtor's
efforts to collect the Accounts and Receivables and any dispute relating to any
Accounts and Receivables), and to verify the Collateral or any portion thereof
(such verification, may include, without limitation, contact with account
debtors). The Debtor shall make available to the Secured Party, at no cost to
the Secured Party, any copying facilities available to the Debtor. The Debtor
shall provide the Secured Party with such information concerning the Debtor, the
Collateral, the operation of the Debtor's business, and the Debtor's financial
condition as the Secured Party may reasonably request from time to time. Until
the expiration or termination of this Agreement, the Debtor agrees not to
destroy any of the Collateral (including, without limitation, all books,
records, ledgers, print-outs, electronically stored data, recorded data, papers,
file materials and information relating to the Collateral), except in the
ordinary course of business to the extent permitted under the Lease. The
obligations of the Debtor hereunder are subject to, and the parties hereto shall
comply with, all applicable Legal Requirements pertaining to the maintenance and
confidentiality of patient records. The provisions contained in this Section 3.3
shall survive the expiration or termination of this Agreement.

      3.4   The amount represented by the Debtor to the Secured Party from time
to time as owing by each account debtor or by all account debtors in respect of
the Accounts and Receivables will at such time in all material respects be the
correct amount actually owing by such account debtor or debtors thereunder.

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      3.5   Subject to the terms of the Lease, the Debtor (a) promptly shall
pay, as they become due and payable, all taxes, unemployment contributions and
all other charges of any kind or nature levied, assessed, or claimed against the
Debtor or the Collateral by any Person whose claim could result in a Lien upon
assets of the Debtor or by any Governmental Authority, (b) properly shall
exercise any trust responsibilities imposed upon the Debtor in connection with
amounts withheld from employees' pay and (c) timely shall make all contributions
and other payments as may be required pursuant to any employee benefit plan now
or hereafter established by the Debtor. At its option, the Secured Party may,
but shall not be obligated, to pay all taxes, unemployment contributions, and
any and all other charges levied, assessed, or claimed against the Debtor or
upon the Collateral by any Person or Governmental Authority, and to make all
contributions or other payments on account of the Debtor's employee benefit
plans as the Secured Party may, in its discretion, deem necessary or desirable
to protect, maintain, preserve, collect, or realize upon any or all of the
Collateral or the value thereof or any right or remedy pertaining thereto.

      3.6   The Debtor shall comply with all, and shall not use or permit the
use of any of the Collateral in violation of any, Legal Requirement.

      3.7   Subject to the terms of the Lease, the Debtor shall not sell or
offer to sell, lease, or otherwise transfer or dispose of the Collateral or any
part thereof or any interest therein, except, with respect to Inventory, Goods,
Equipment, Fixtures and Tangible Personal Property, in the ordinary conduct of
the Debtor's business.

      3.8   Without limiting any of the Debtor's obligations hereunder or under
any of the other Lease Documents, upon the occurrence of an Event of Default,
the Debtor shall promptly deliver to the Secured Party, in the same form as
received by the Debtor, all original items of the Receivables Collateral and all
security or collateral for, guarantees of, and Letters of Credit, trade and
bankers' acceptances, and similar letters and instruments in respect of, any of
the Receivables Collateral, each duly endorsed, assigned or otherwise made
payable to the Secured Party.

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      3.9   The Debtor shall have and maintain insurance at all times with
respect to the Collateral that is required pursuant to the terms of the Lease.

      3.10  The Debtor shall do, make, execute and deliver all such additional
and further acts, things, deeds, assurances and instruments as the Secured Party
may reasonably request, to vest more completely in and assure to the Secured
Party its rights hereunder and in or to the Collateral including, without
limitation, compliance with the Federal Assignment of Claims Act.

      3.11  The agreements, representations, covenants and warranties contained
herein are in addition to any others previously, presently or hereafter made by
the Debtor to or with the Secured Party in any other instrument.

      3.12  From and after the occurrence of an Event of Default and subject to
applicable law, the Secured Party may, in its sole and absolute discretion,
require the Debtor to establish a lock box with a bank or other financial
institution designated by the Secured Party. If such a lock box is established,
the Debtor shall thereafter require all of its account and contract debtors to
make payment directly to such lock box.

                  ARTICLE 4. COLLECTION OF ACCOUNTS RECEIVABLE,
                CONTRACT RIGHTS AND OTHER RECEIVABLES COLLATERAL.

      4.1   From and after the occurrence of an Event of Default and subject to
applicable law, (a) the Secured Party may notify any of the Debtor's account or
contract debtors, either in the name of the Secured Party or the Debtor, to make
payment directly to the Secured Party or such other address as may be specified
by the Secured Party, and may advise any Person of the Secured Party's security
interest in and to the Receivables Collateral, and may collect directly from the
obligors thereon, all amounts due on account of the Receivables Collateral and
(b) at the Secured Party's request, the Debtor will provide written
notifications to any or all of the Debtor's account or contract debtors
concerning the Secured Party's security interest in the Receivables Collateral
and will request that such account or contract debtors forward payment thereof
directly to the Secured Party.

      4.2   From and after the date hereof, the Debtor shall hold any proceeds
and collections of any of the Collateral in trust

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for the Secured Party, provided that, without limiting any provisions of the
other Lease Documents, until the occurrence of an Event of Default, the Debtor
may use such proceeds to pay bills in the ordinary course of business. From and
after the occurrence of an Event of Default (a) the Debtor shall not commingle
such proceeds or collections with any other funds of the Debtor and (b) upon
demand, the Debtor shall deliver all such proceeds to the Secured Party
immediately upon the receipt thereof by the Debtor in the identical form
received but duly endorsed or assigned on behalf of the Debtor to the Secured
Party.

      4.3   The Debtor hereby irrevocably constitutes and appoints the Secured
Party as the Debtor's true and lawful attorney, with full power of substitution,
such powers to be effective following the occurrence of an Event of Default, to
convert the Receivables Collateral into cash at the sole risk, cost, and expense
of the Debtor, but for the sole benefit of the Secured Party. Subject to
applicable law, the rights and powers granted the Secured Party by the within
appointment include but are not limited to the right and power to: prosecute,
defend, compromise, settle, or release any action relating to the Collateral;
receive, open, and dispose of all mail addressed to the Debtor and to take
therefrom any remittances on or proceeds of any Collateral; sign change of
address forms to change the address to which the Debtor's mail is to be sent as
the Secured Party shall designate; endorse the name of the Debtor in favor of
the Secured Party upon any and all checks or other items constituting
remittances or proceeds of Collateral; sign and endorse the name of the Debtor
on, and to receive as secured party, any of the Collateral, any invoices,
schedules of Collateral, freight or express receipts, or bills of lading,
storage receipts, warehouse receipts, or other documents of title of a same or
different nature relating to the Collateral; sign the name of the Debtor on any
notice to the obligors on the Receivables Collateral; take all such action as
may be necessary to obtain the payment on any Letter of Credit of which the
Debtor is a beneficiary; take all action as may be necessary to obtain control
of, and obtain payment from, any Deposit Accounts or Letter of Credit Rights;
and sign and file or record on behalf of the Debtor any financing or other
statement in order to perfect or protect the Secured Party's security interest.
The Secured Party shall not be obligated to perform any of such acts or to
exercise any of such powers, but if the Secured Party elects so to perform or
exercise, the Secured Party shall not be accountable for more than it actually
receives as a

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result of such exercise of power, and shall not be responsible to Debtor except
for the Secured Party's actual willful misconduct. All powers conferred upon the
Secured Party by this Agreement, being coupled with an interest, shall be
irrevocable until terminated by a written instrument executed by a duly
authorized officer of the Secured Party and shall not be affected by any
disability or incapacity which the Debtor may suffer and shall survive the same.
The power of attorney conferred on the Secured Party pursuant to the provisions
of this Article 4 is provided solely to protect the interests of the Secured
Party and shall not impose any duty on the Secured Party to exercise any such
power, and neither the Secured Party nor such attorney-in-fact shall be liable
for any act, omission, error in judgment or mistake of law, except as the same
may result from its gross negligence or willful misconduct.

                          ARTICLE 5. EVENTS OF DEFAULT

      Upon the occurrence of a default beyond the applicable notice and/or grace
periods, if any, under this Agreement or any of the other Lease Documents (each,
hereinafter referred to as an "Event of Default" hereunder), at the option of
the Secured Party, the Lease Obligations shall become immediately due and
payable by the Debtor; in addition to which, the Secured Party may exercise its
rights and remedies upon default, as set forth under this Agreement. The
occurrence of any such Event of Default shall also constitute, without notice or
demand, a default under all other Related Party Agreements.

                   ARTICLE 6. RIGHTS AND REMEDIES UPON DEFAULT

      6.1   Upon the occurrence of any Event of Default and at any time
thereafter, the Secured Party shall have all of the rights and remedies of a
secured party upon default under the UCC; in addition to which, the Secured
Party shall have all of the following rights and remedies: (a) to collect the
Receivables Collateral; (b) to take possession of the Collateral and to maintain
and to use the same at the Premises (or elsewhere) pending any disposition
thereof; (c) to sell, lease, or otherwise dispose of any or all of the
Collateral in its then condition or following such preparation or processing as
the Secured Party deems advisable having due regard to compliance with any
statute or regulation which might affect, limit, or apply to the Secured Party's
disposition of the Collateral; and/or (d) to apply the Receivables Collateral,
or the proceeds of the Collateral,

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towards (but not necessarily in complete satisfaction of) the Lease Obligations
in such order as the Secured Party may determine (in its sole and absolute
discretion). The Secured Party may conduct any such sale or other disposition of
the Collateral at the Premises (or elsewhere). Unless the Collateral is
perishable, threatens to decline speedily in value, or is of a type customarily
sold on a recognized market (in which event the Secured Party shall give the
Debtor such notice as may be practicable under the circumstances), the Secured
Party shall give the Debtor at least the greater of the minimum notice required
by law or seven (7) days' prior written notice of the date, time and place of
any proposed public sale, and/or of the date after which any private sale or
other disposition of the Collateral may be made. The Secured Party may purchase
the Collateral, or any portion of it, at any public sale conducted pursuant to
this Agreement.

      6.2   In connection with the Secured Party's exercise of the Secured
Party's Rights and Remedies, in accordance with and to the maximum extent
permitted by applicable law, the Secured Party may enter upon, occupy, and use
any premises owned or occupied by the Debtor, and may exclude the Debtor from
such premises or portion thereof as may have been so entered upon, occupied, or
used by the Secured Party. The Secured Party shall not be required to remove any
of the Collateral from any such premises upon the Secured Party's taking
possession thereof, and may render any Collateral unusable to the Debtor. In no
event shall the Secured Party be liable to the Debtor for use or occupancy by
the Secured Party of any premises pursuant to this Agreement, nor for any charge
(such as wages for the Debtor's employees and utilities) incurred in connection
with the Secured Party's exercise of the Secured Party's Rights and Remedies.

      6.3   Upon the occurrence of any Event of Default, the Secured Party may
require the Debtor to assemble the Collateral and make it available to the
Secured Party at the Debtor's sole risk and expense at a place or places
designated by the Secured Party which are reasonably convenient to both the
Secured Party and the Debtor.

      6.4   The rights, remedies, powers, privileges, and discretions of the
Secured Party hereunder and under the other Lease Documents (herein, the
"Secured Party's Rights and Remedies") shall be cumulative and not exclusive of
any rights or remedies which it otherwise may have. No delay or omission by

                                      -12-
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the Secured Party in exercising or enforcing any of the Secured Party's Rights
and Remedies shall operate as, or constitute, a waiver thereof. No waiver by the
Secured Party of any Event of Default shall operate as a waiver of any other
default hereunder or under any of the other Lease Documents. No exercise of any
of the Secured Party's Rights and Remedies and no other agreement or transaction
of whatever nature entered into between the Secured Party and the Debtor at any
time, shall preclude any other exercise of the Secured Party's Rights and
Remedies. No waiver by the Secured Party of any of the Secured Party's Rights
and Remedies on any one occasion shall be deemed a waiver on any subsequent
occasion, nor shall it be deemed a continuing waiver. All of the Secured Party's
Rights and Remedies and all of the Secured Party's rights, remedies, powers,
privileges, and discretions under any Related Party Agreement are cumulative and
not alternative or exclusive and may be exercised by the Secured Party at such
time or times and in such order of preference as the Secured Party in its sole
discretion may determine.

                            ARTICLE 7. MISCELLANEOUS

      7.1   The Secured Party shall have no duty as to the collection or
protection of the Collateral beyond the safe custody of such of the Collateral
as may come into the possession of the Secured Party and shall have no duty as
to the preservation of rights against prior parties or of any other rights
pertaining thereto. The Secured Party's Rights and Remedies may be exercised
without resort or regard to any other source of satisfaction of the Lease
Obligations.

      7.2   The obligations of the Debtor under this Agreement shall continue in
full force and effect until all of the Lease Obligations have been fully paid
and performed.

      7.3   The Secured Party shall be at liberty, without giving notice to or
obtaining the assent of the Debtor and without relieving the Debtor of any of
the Lease Obligations, to deal with each other Person who now is or after the
date hereof becomes liable in any manner for any of the Lease Obligations (a
"Liable Person"), in such manner as the Secured Party in its sole discretion
deems fit, and to this end the Debtor gives to the Secured Party full authority
in its sole discretion to do any or all of the following things: (a) extend
credit, make loans, and afford other financial accommodations to any Liable
Person, enter into leases of real and personal property and agreements and

                                      -13-
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contracts of any nature whatsoever, at such times, in such amounts, and on such
terms as the Secured Party may approve, (b) vary the terms and grant extensions
or renewals of any present or future indebtedness or obligation to the Secured
Party of any Liable Person, (c) grant time, waivers, and other indulgences in
respect thereto, (d) vary, exchange, release or discharge, wholly or partially,
or delay in or abstain from perfecting and enforcing any security or guaranty or
other means of obtaining payment of any of the Lease Obligations which the
Secured Party now has or acquires after the date hereof, (e) accept partial
payments from any Liable Person, (f) release or discharge, wholly or partially,
any endorser or guarantor and (g) compromise or make any settlement or other
arrangement with any Liable Party. The Debtor waives all suretyship defenses of
every kind and nature.

      7.4   This Agreement shall be in addition to any guaranty or other
security for the Lease Obligations, and it shall not be prejudiced or rendered
unenforceable by the invalidity of any such guaranty or other security.

      7.5   The Debtor waives: notice of acceptance hereof, notice of any action
taken or omitted by the Secured Party in reliance hereon, and any requirement
that the Secured Party be diligent or prompt in making demands hereunder, giving
notice of any default by a Liable Person or asserting any other right of the
Secured Party hereunder. The Debtor also irrevocably waives, to the fullest
extent permitted by law, all defenses which at any time may be available in
respect of the Debtor's obligations hereunder by virtue of any homestead
exemption, statute of limitations, valuation, stay, moratorium law or other
similar law now or hereafter in effect.

      7.6   As long as the Lease Obligations remain unpaid or undischarged, the
Debtor will not, by paying any sum recoverable hereunder (whether or not
demanded by the Secured Party) or by any means or on any other ground, claim any
set-off or counterclaim against any Liable Person in respect of any liability of
the Debtor to such Liable Person or, in proceedings under the bankruptcy or
other similar laws of the United States, any state or any other jurisdiction or
any insolvency proceedings of any nature, prove in competition with the Secured
Party in respect of any payment hereunder or be entitled to have the benefit of
any counterclaim or proof of claim or dividend or payment by or on behalf of any
Liable Person or the benefit of

                                      -14-
<PAGE>
any other security for any Liability which, now or hereafter, the Secured Party
may hold or in which it may have any share.

      7.7   The Debtor shall pay, on demand, all costs and expenses (including,
without limitation, attorneys' fees and expenses) now or hereafter reasonably
incurred by the Secured Party (a) in connection with the protection or
enforcement of any of the Secured Party's rights and remedies against the
Debtor, any of the Collateral, and any other Liable Person (including, without
limitation, the exercise of any of the Secured Party's Rights and Remedies)
and/or (b) on account of the Secured Party's relationship with any member of the
Leasing Group.

      7.8   This Agreement shall be construed, and the rights and obligations of
the Debtor and the Secured Party shall be determined, in accordance with the
laws of the Commonwealth of Massachusetts, except (a) that the laws of the state
where the Collateral is located shall govern this Agreement to the extent
necessary to perfect and/or enforce the Liens created by this Agreement and to
the extent necessary to obtain the benefit of the rights and remedies set forth
herein with respect to the Collateral and (b) for procedural requirements which
must be governed by the laws of the state in which the Collateral is located. To
the maximum extent permitted by applicable law, the Debtor hereby submits to the
jurisdiction of the courts of the Commonwealth of Massachusetts and the United
States District Court for the District of Massachusetts, as well as to the
jurisdiction of all courts from which an appeal may be taken from the aforesaid
courts, for the purpose of any suit, action or other proceeding arising out of,
or with respect to any of the Lease Documents, the negotiation and/or
consummation of the transactions evidenced by the Lease Documents, the Lessor's
relationship of any member of the Leasing Group in connection with the
transactions evidenced by the Lease Documents and/or the performance of any
obligation or the exercise of any remedy under any of the Lease Documents and
expressly waives any and all objections the Debtor may have as to venue in any
of such courts.

      7.9   This Agreement shall remain in full force and effect until
specifically terminated in writing by a duly authorized officer of the Secured
Party. In the event that any of the Lease Obligations remain outstanding, such
termination by the Secured Party may be conditioned upon such further
indemnifications provided to the Secured Party by or on behalf of the Debtor as

                                      -15-
<PAGE>
the Secured Party may request. Until specifically terminated in writing as set
forth above, this Agreement shall itself constitute conclusive evidence of
validity, effectiveness and continuing force hereof and any Person may rely
hereon. Upon the satisfaction in full of all of the Lease Obligations, the
Secured Party, upon the written request of the Debtor, shall execute and deliver
to the Debtor, at the Debtor's expense, all instruments of assignment or other
instruments as may be necessary to establish full title of the Debtor to the
Collateral, subject to any prior sale or other disposition pursuant to the terms
and provisions of this Agreement.

      7.10  It is intended that the security interests created by this Agreement
attached to all of the Debtor's assets now owned or hereafter acquired which are
capable of being subject to a security interest.

      7.11  The Debtor acknowledges having received a copy of this Agreement.

      7.12  The provisions set forth in Article 22, Article 23 and Sections 2.2,
16.8 through 16.10, 24.2 through 24.10 and 24.12 of the Lease are hereby
incorporated by reference, mutatis, mutandis, and shall be applicable to this
Agreement as if set forth in full herein.

                [REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

                                      -16-
<PAGE>
      IN WITNESS WHEREOF, the Debtor and the Secured Party duly executed this
Agreement as a sealed instrument as of the day and year first above written.

WITNESS:                            DEBTOR:

                                    BALANCED CARE TENANT (MT), INC., a
                                    Delaware corporation

/s/Jaynelle D. Covert               By:/s/Robin L. Barber   (SEAL)
Name: Jaynelle D. Covert                Name: Robin L. Barber
                                        Title: Vice President and
                                               Secretary

WITNESS:                            SECURED PARTY:

                                    MEDITRUST ACQUISITION COMPANY II
                                    LLC, a Delaware limited liability
                                    company

/s/Richard L. Pomroy                By:/s/Kathryn Arnone    (SEAL)
Name: Richard L. Pomroy                 Name: Kathryn Arnone
                                        Title: Secretary

                                      -17-<PAGE>
Exhibit 10.15

                                    GUARANTY

      Reference is made to (a) that certain Option, Settlement and Release
Agreement, dated as of February 6, 2002 (the "Option Agreement"), by and among
Meditrust Acquisition Company II LLC (the "Lessor"), La Quinta TRS II, Inc. ("La
Quinta-TRS"), IPC Advisors S.A.R.L.(the "Buyer"), Balanced Care Corporation (the
"Guarantor"), Balanced Care at Stafford, Inc. ("BCC-Stafford"), BCC Development
and Management Co. (the "Developer"), Balanced Care at Blytheville, Inc.
("BCC-Blytheville"), Balanced Care at Lewisburg, Inc. ("BCC-Lewisburg"), BCC at
Lima, Inc. ("BCC-Lima"), Balanced Care at Dillsburg, Inc. ("BCC-Dillsburg"),
Balanced Care at Xenia, Inc. ("BCC-Xenia"), BCC at Chippewa, Inc.
("BCC-Chippewa"), Balanced Care at Kingsport, Inc. ("BCC-Kingsport"), Balanced
Care at Chesterfield, Inc. ("BCC-Chesterfield"), Balanced Care at
Hendersonville, Inc. ("BCC-Hendersonville"), Balanced Care at Knoxville, Inc.
("BCC-Knoxville"), Balanced Care at Pocahontas, Inc. ("BCC-Pocahontas") and
Balanced Care Tenant (MT), Inc. (the "Lessee") and (b) that certain Master Lease
Agreement of even date herewith by and between the Lessor and the Lessee (the
"Lease"). All capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed to such terms in the Lease.

      The Lessor is the owner of twelve (12) parcels of lands located in
Arkansas, Pennsylvania, Ohio, Virginia and Tennessee and more particularly
described in the Lease (collectively, the "Land"). The Lessor acquired title to
the Land from its Affiliate, New Meditrust Company LLC, a Delaware limited
liability company that is now known as THCI Company, LLC ("New Meditrust-LLC").
BCC-Stafford, the Developer, BCC-Blytheville, BCC-Lewisburg, BCC-Lima,
BCC-Dillsburg, BCC-Xenia, BCC-Chippewa, BCC-Kingsport, BCC-Chesterfield,
BCC-Hendersonville, BCC-Knoxville and BCC-Pocahontas (collectively, the "BCC
Subsidiaries") are all directly owned and controlled by the Guarantor. The Buyer
is the majority shareholder of the Guarantor. The Guarantor and the BCC
Subsidiaries (collectively, the "BCC Parties") regularly transact business with
each other, with the BCC Parties providing working capital, financial and
management services and benefits and other services and benefits to and for each
other.

      Previously, certain wholly-owned Subsidiaries of Meditrust Corporation,
which is now known as La Quinta Properties, Inc.
<PAGE>
(such Subsidiaries are collectively referred to as the "Meditrust Subsidiaries")
entered into various loan, lease and other transactions involving the Guarantor
and various wholly-owned Subsidiaries of the Guarantor, including, without
limitation, the transactions evidenced by the Existing Lease Documents (as
defined under the Option Agreement) and transactions involving the Tranche 1
Properties (as defined under the Option Agreement). Pursuant to the Existing
Leases, the Lessor leased the Leased Property to the Existing Lessees (as
defined under the Option Agreement). Until the consummation of the Stock
Transfers (as defined under the Option Agreement), all of the Existing Lessees
other than BCC-Stafford (collectively, the "Third Party Lessees") were owned by
parties that are unrelated to the Guarantor.

      In accordance with the Existing Lease Documents, the Developer, on behalf
of each Third Party Lessee, constructed an assisted living or other senior
housing facility on the portion of the Land demised to such Third Party Lessee,
with funds advanced under the Existing Lease Documents. Each Third Party Lessee
also engaged one of the BCC Subsidiaries (other than the Developer and
BCC-Stafford) to manage the Facility demised to it under the applicable Existing
Lease.

      In addition to advancing funds under the Existing Lease Documents for the
construction of the Facilities, the applicable Meditrust Subsidiary (i) advanced
funds pursuant to the Notes (as defined under the Option Agreement) to the
Holding Companies (as defined under the Option Agreement), the sole shareholders
of the Third Party Lessees, to enable the Holding Companies to make equity
contributions to the Third Party Lessees so that, upon receipt of the equity
contributions made by the Holding Companies to the Third Party Lessees, such
Third Party Lessees could fulfill their respective working capital obligations,
including, without limitation, their Existing Lease Obligations (as defined
under the Option Agreement) and (ii) accepted the Demand Notes (as defined under
the Option Agreement), as additional security for the Existing Lease
Obligations.

      In order to induce the applicable Meditrust Subsidiaries (i) to enter into
and accept the Existing Leases and the other Existing Lease Documents and (ii)
to lend to the Holding Companies the sums advanced under the Notes in accordance
with the terms thereof; which, in turn, induced the Third Party Lessees to
engage the Developer to develop the Facilities demised to the Third Party
Lessees and to engage the other applicable BCC Subsidiaries to manage such
Facilities, the

                                       -2-
<PAGE>
Guarantor agreed, pursuant to the Working Capital Assurance Agreements (as
defined under the Option Agreement), to advance to the Third Party Lessees all
funds necessary for the Third Party Lessees to fulfill their working capital
obligations (including, without limitation, all of their rent and other
obligations under the Existing Leases). In consideration of the Guarantor's
agreement to provide such working capital to the Third Party Lessees, the
Holding Companies granted the Guarantor options to acquire all of the issued and
outstanding capital stock of the Third Party Lessees (collectively, the "Stock
Options"); thus, the Guarantor and the other BCC Parties each received direct
and indirect benefits from the consummation of the transactions contemplated
under the Existing Lease Documents because they were able to enter into
contractual arrangements that would allow them to develop, manage and ultimately
acquire ownership of the operation of the Facilities.

      In 1999, the Buyer and the Guarantor were granted an option to acquire the
Tranche 1 Properties by New Meditrust-LLC. As part of the consideration paid by
the Buyer and the Guarantor for the Tranche 1 Properties, the Buyer and
Guarantor executed and delivered to New Meditrust-LLC a Promissory Note, dated
as of December 30, 1999, in the original principal amount of SEVEN MILLION EIGHT
HUNDRED ELEVEN THOUSAND FIFTY-FOUR DOLLARS ($7,811,054) made by the Buyer and
the Guarantor to the order of New Meditrust-LLC (the "Promissory Note"). As a
condition of the consummation of the transaction involving the Tranche 1
Properties, the Buyer and the Guarantor agreed to acquire from New Meditrust-LLC
an option to acquire a fee simple interest in the Leased Property and New
Meditrust-LLC agreed to grant the Buyer an option to acquire a fee simple
interest in the Leased Property, all in accordance with the terms and conditions
set forth in that certain Option Agreement, dated as of December 30, 1999, as
amended, by and among New Meditrust-LLC, the Buyer and the Guarantor (the "1999
Option Agreement"). The 1999 Option Agreement provided, among other things, that
for each Facility (and the applicable portion of the Leased Property relating
thereto) acquired in accordance with the terms of the 1999 Option Agreement, a
portion of the purchase price paid with respect thereto would be applied to
reduce the Promissory Note.

      The 1999 Option Agreement expired by its terms without any exercise
thereunder; however, prior to the expiration of the term of the 1999 Option
Agreement, there were numerous conversations and letters between the parties
regarding proposed extensions of the 1999 Option Agreement and a dispute arose
between New Meditrust-LLC, the Guarantor and the Buyer as to

                                       -3-
<PAGE>
whether and on what terms an extension had been granted and as to the
outstanding obligations owed to New Meditrust-LLC under the Promissory Note. The
Guarantor and the Buyer asserted, among other things, that New Meditrust-LLC (i)
violated its obligations under the 1999 Option Agreement, in part, to avoid a
reduction of the outstanding indebtedness under the Promissory Note and (ii)
failed to provide a waiver of financial covenants under certain of the Existing
Lease Documents so that defaults under the Existing Lease Documents would exist
(which would, in turn, prevent the exercise of the option under the 1999 Option
Agreement as the absence of any such defaults was a pre-condition to the
exercise and consummation of the transactions contemplated under the 1999 Option
Agreement).

      New Meditrust-LLC denied those allegations and asserted, among other
things, that the request for the waiver was not made until after the 1999 Option
Agreement had already expired and that the Buyer and the Guarantor had not
exercised the option granted under the 1999 Option Agreement prior to the
expiration thereof. In March of 2001, New Meditrust-LLC assigned all of its
right, title and interest under the Promissory Note to La Quinta-TRS. La
Quinta-TRS filed the Pending Litigation (as defined in the Option Agreement)
against the Buyer and the Guarantor, seeking payment of all amounts due under
the Promissory Note.

      During the recent past, the Guarantor and its Subsidiaries experienced
cash flow shortfalls at certain of their respective facilities and businesses
(including, without limitation, at the Facilities) and, as a result of such cash
flow shortfalls, publicly announced, on several previous occasions, that they
would be unable to meet their various financial obligations, including, without
limitation, (i) the Guarantor's obligations to the Lessor to advance funds under
the Working Capital Assurance Agreements and make payments under the Potomac
Point Guaranty (as defined under the Option Agreement) and (ii) BCC-Stafford's
obligation to pay rent under the Potomac Point Lease (as defined under the
Option Agreement). Such announcements by the Guarantor that it was unable to
meet its debts constituted defaults under the Existing Leases. In addition, (a)
commencing with the quarter that ended September 30, 2000 and for each quarter
thereafter, the Existing Lessees failed to maintain the applicable Rent Coverage
Ratio (as defined under the Option Agreement) required under the Existing Leases
and such failures to maintain the required Rent Coverage Ratios constituted
defaults under the Existing Leases and (b) commencing with the quarter that
ended September 30, 2000 and for each quarter

                                       -4-
<PAGE>
thereafter, the Guarantor did not maintain the Tangible Net Worth (as defined
under the Option Agreement) required under the Existing Leases and such failures
to maintain the required Tangible Net Worth constituted defaults under the
Existing Leases.

      Commencing with the month ending on November 30, 2000 and for each month
thereafter, the Holding Companies failed to make the payments due under the
Notes and such failures to make the monthly payments due under the Notes
constituted defaults under the Existing Leases. Commencing with the month ending
on December 31, 2000 and for each month thereafter, the Third Party Lessees and
BCC-Stafford did not pay the Existing Base Rent (as defined in the Option
Agreement) due under the Existing Leases and such failures to make the Existing
Base Rent payments constituted defaults under the Existing Leases. In addition,
the Third Party Lessees and BCC-Stafford did not pay all of the Existing
Additional Rent (as defined under the Option Agreement) due under the Existing
Leases and such failures to make the Existing Additional Rent payments
constituted defaults under the Existing Leases.

      Demand was made upon the Guarantor under the Working Capital Assurance
Agreements and the Potomac Point Guaranty to advance sufficient funds to cure
the monetary defaults described above, but the Guarantor failed to effect such
cures and such failures constituted defaults under the Existing Leases. The
Guarantors and its Subsidiaries, as well as the Third Party Lessees, continued
to experience cash flow shortfalls and, as a result, the Guarantor, the other
BCC Parties and the Third Party Lessees anticipated a continued future inability
to comply with their respective obligations under the Existing Lease Documents.

      The Buyer, the Guarantor and the BCC Subsidiaries wished to avoid the
damage to their respective businesses and reputations which may have resulted
from (i) the continued inability by the Guarantor and the BCC Subsidiaries to
comply with their respective obligations under the Existing Lease Documents and
any subsequent exercise by the Lessor of its rights and remedies in connection
therewith and (ii) the continued prosecution of the Pending Litigation by La
Quinta-TRS. The Lessor and La Quinta-TRS (collectively, the "Meditrust Parties")
wished to avoid (a) the damage to the reputation and other goodwill of the
Facilities that may have resulted from any future inability of the Guarantor and
the BCC Subsidiaries to comply with their obligations under the Existing Lease
Documents as a consequence of their deteriorating financial condition and (b)
the delay and

                                       -5-
<PAGE>
expense attendant to any exercise of their respective rights and remedies under
the Existing Lease Documents and the Promissory Note. In addition, the Buyer
wished to be granted an option to acquire the Leased Property so that in
connection with any purchase of the Leased Property by the Buyer, the BCC
Parties' business operations with respect to the Facilities could restructured
on a basis favorable to them, which will, in turn, allow (x) the Guarantor and
the BCC Subsidiaries to improve their deteriorating financial condition and (y)
the Buyer to protect its investment in the Guarantor. In addition, (1) as a
consequence of the deteriorating financial condition of the Balanced Care
Entities (as defined in the Option Agreement), the Buyer and the Guarantor asked
for certain financial accommodations from the Meditrust Parties, including,
without limitation, a release from their respective liabilities under the
Promissory Note and arising as a consequence of the Existing Defaults (as
defined under the Option Agreement) and (2) in order to move forward toward
completing the Divesture (as defined under the Option Agreement), (A) the Seller
wished to resolve the Existing Defaults and desires to sell the Leased Property
and (B) La Quinta-TRS wished to resolve the Pending Litigation.

      Consequently, the Buyer, the BCC Parties and the Meditrust Parties entered
into the Option Agreement to and address and settle the foregoing matters.
Pursuant to the Option Agreement, among other things, (i) the Lessor granted an
option to the Buyer to acquire the Leased Property at a discounted price, (ii)
La Quinta-TRS agreed to settle the Pending Litigation, (iii) the Seller granted
the BCC Release (as defined under the Option Agreement) and (iv) the Meditrust
Parties granted the IPC/BCC Release (as defined under the Option Agreement); all
subject to the terms and conditions more particularly set forth under the Option
Agreement, including, without limitation, the consummation of the Stock
Transfers and Mergers, the assignment of the tenant's interest under the Potomac
Point Lease Documents to the Lessee, the consolidation, amendment and
restatement of the Existing Leases into the Lease and the execution and delivery
of the other Lease Documents (including, without limitation, this Guaranty).

      Accordingly, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, which consideration includes (a)
the Lessor's agreement to enter into the Option Agreement and grant the Option
Right (as defined under the Option Agreement) to the Buyer, (b) the Lessor's
agreement to the IPC/BCC Release and the BCC Release and (c) the

                                       -6-
<PAGE>
Lessor's agreement to consent to the Stock Transfers (notwithstanding the
Existing Defaults), the undersigned, BALANCED CARE CORPORATION, a Delaware
corporation, having its principal place of business at 1215 Manor Drive,
Mechanicsburg, Pennsylvania 17055, hereby unconditionally guarantees to the
Lessor the full payment and performance of the Lease Obligations.

      This Guaranty is an absolute, unconditional and continuing guaranty of the
full and punctual payment and performance of the Lease Obligations and not
merely of their collectibility and is in no way conditioned upon any requirement
that the Lessor first collect or attempt to collect the Lease Obligations or any
portion thereof from the Lessee or from any endorser, surety or other guarantor
of any of the same or resort to any security or other means of obtaining the
payment and/or performance of any of the Lease Obligations that the Lessor now
has or may acquire after the date hereof, or upon any other contingency
whatsoever. Upon any Lease Default, the Lease Obligations and all liabilities
and obligations of the Guarantor to the Lessor, hereunder or otherwise, shall,
at the option of the Lessor, become immediately due and payable to the Lessor
without further demand or notice of any nature, all of which are expressly
waived by the Guarantor. Payments by the Guarantor hereunder may be required by
the Lessor on any number of occasions. This Guaranty shall continue in full
force and effect until the complete payment and performance of all of the Lease
Obligations.

      All payments hereunder received by the Lessor shall be applied by the
Lessor, without any marshalling of assets, towards the payment and/or
performance of the Lease Obligations and any other indebtedness of the Guarantor
hereunder in such order as the Lessor, in its sole and absolute discretion, may
determine.

      2.    The Guarantor's Further Agreements to Pay. The Guarantor further
agrees, as the principal obligor and not as a guarantor, to pay to the Lessor
forthwith upon demand, in funds immediately available to the Lessor, all costs
and expenses, including without limitation, court costs and attorneys' fees and
expenses and court costs, reasonably incurred or expended by the Lessor in
connection with the collection or enforcement of the Lease Obligations and the
enforcement of all of the other obligations hereunder. Any amounts owed to the
Lessor under this Section 2 shall be a demand obligation and, if not paid within
ten (10) days after demand, shall thereafter, to the

                                       -7-
<PAGE>
extent then permitted by applicable law, bear interest at the Overdue Rate until
the date of payment. The provisions of this Section 2 shall survive the
expiration or earlier termination of the Lease.

      3.    Liability of the Guarantor. This Guaranty is unlimited and the
Guarantor shall be jointly and severally liable with every endorser, surety or
other guarantor of any or all of the Lease Obligations and the continuation of
this Guaranty shall not be affected by the termination, discontinuance, release
or modification of any agreement from (a) any such endorser, surety or guarantor
and/or (b) any other endorser, surety or guarantor of any of the other
Obligations. Nothing contained herein or otherwise shall require the Lessor to
make demand upon or join the Lessee or any such endorser, surety or guarantor or
other party in any suit brought upon this Guaranty; and the Guarantor hereby
waives any right to require marshalling or exhaustion of any remedy against any
collateral, other property, or any other Person primarily or secondarily liable
for the Obligations.

      4.    The Lessor's Freedom to Deal with the Lessee and Other Parties. The
Lessor shall be at liberty, without giving notice to or obtaining the assent of
the Guarantor and without relieving the Guarantor of any liability hereunder, to
deal with the Lessee and with each other Person who now is or after the date
hereof becomes liable in any manner for any of the Obligations in such manner as
the Lessor, in its sole and absolute discretion, deems fit. The Lessor and the
other Meditrust Entities have full authority (in their sole and absolute
discretion) to do any or all of the following things, none of which shall
discharge or affect the Guarantor's liability hereunder:

      (a)   extend credit, make loans and afford other financial accommodations
to the Lessee and/or any of the Related Parties at such times, in such amounts
and on such terms as the Lessor may approve;

      (b)   modify, amend, vary the terms and grant extensions or renewals of
any present or future indebtedness or of any of the Obligations or any
instrument relating to or securing the same, and, without limitation, this
Guaranty shall survive the expiration or earlier termination of the Lease;

      (c)   grant time, waivers and other indulgences in respect of any of the
Obligations;

                                       -8-
<PAGE>
      (d)   vary, exchange, release or discharge, wholly or partially, or delay
or abstain from perfecting and enforcing any security or guaranty or other means
of obtaining payment of any of the Obligations which the Lessor or any of the
other Meditrust Entities now has or acquires after the date hereof;

      (e)   take or omit to take any of the actions referred to in any
instrument evidencing, securing or relating to any of the Obligations or any
actions under this Guaranty;

      (f)   fail, omit or delay to enforce, assert or exercise any right, power
or remedy conferred on the Lessor or any of the other Meditrust Entities in this
Guaranty or in any other instrument evidencing, securing or relating to any of
the Obligations or take or refrain from taking any other action;

      (g)   accept partial payments from the Lessee, any other member of the
Leasing Group, any of the Related Parties or any other Person;

      (h)   release or discharge, wholly or partially, the Lessee, any other
member of the Leasing Group, any of the Related Parties and/or any other Person
now or hereafter primarily or secondarily liable for the Obligations (or any
portion thereof) or accept additional collateral for the payment of any
Obligations;

      (i)   compromise or make any settlement or other arrangement with the
Lessee, any other member of the Leasing Group, any of the Related Parties or any
other Person referred to in clause (h) above; and

      (j)   consent to and participate in the proceeds of any assignment, trust
or mortgage for the benefit of creditors.

      5.    Unenforceability of Obligations; Invalidity of Security or Other
Guaranties. The obligations of the Guarantor hereunder shall not be affected by
any change in the beneficial ownership of the Lessee, any other member of the
Leasing Group or any of the Related Parties, by reason of any disability of the
Lessee, any other member of the Leasing Group, any Related Party or by any other
circumstance (other than the complete payment and performance of the Lease
Obligations) which might constitute a defense available to, or a discharge of,
the Lessee, any other member of the Leasing Group or any of the Related Parties
in respect of any of the Obligations. If for

                                       -9-
<PAGE>
any reason now or hereafter the Lessee, any other member of the Leasing Group or
any of the Related Parties has no legal existence or is under no legal
obligation to discharge any of the Obligations undertaken or purported to be
undertaken by it or on its behalf, or if any of the moneys included in the
Obligations have become irrecoverable from the Lessee, any other member of the
Leasing Group or any Related Party by operation of law or for any other reason,
this Guaranty shall nevertheless be binding on the Guarantor and the Guarantor
shall remain unconditionally liable for the complete payment and performance of
the Lease Obligations. This Guaranty shall be in addition to any other guaranty
or other security for the Obligations, and it shall not be prejudiced or
rendered unenforceable by the invalidity of any such other guaranty or security.
This Guaranty shall continue to be effective or be reinstated, as the case may
be, if, at any time, any payment of the Obligations is rescinded or must
otherwise be returned by the Lessor or any of the other Meditrust Entities, upon
the insolvency, bankruptcy or reorganization of the Lessee, any other member of
the Leasing Group or any of the Related Parties or otherwise, all as though such
payment had not been made. The Guarantor covenants to cause the Lessee to
maintain and preserve the enforceability of any instruments now or hereafter
executed in favor of the Lessor, and to take no action of any kind which might
be the basis for a claim that the Guarantor has any defense hereunder other than
the complete payment and performance of the Lease Obligations.

      It shall not be necessary for the Lessor to inquire into the power of the
Lessee or anyone acting or purporting to act on its behalf, and any Lease
Obligation made or created in reliance upon the professed exercise of such
powers shall be guaranteed hereunder. The Guarantor represents that the Lessee
is the bona fide tenant of the Leased Property and that the Lessee has not been
formed or availed of to evade or circumvent the applicable usury laws of any
state or states concerned therewith, and the Guarantor hereby indemnifies the
Lessor and agrees to save it harmless against any damages or expenses suffered
by the Lessor should this representation or any other representation contained
herein prove untrue in any material respect. The aforesaid indemnification
agreement shall include, without limitation, attorneys' fees and expenses and
court costs reasonably incurred by the Lessor in connection with the enforcement
of said indemnification.

                                      -10-
<PAGE>
      The indemnity provisions of this Section 5 shall survive the complete
payment and performance of the Obligations and the expiration or earlier
termination of the Lease.

      6.    Representations and Warranties of the Guarantor. In order to induce
the Lessor to enter into or accept the Lease and the other Lease Documents, the
Guarantor hereby warrants and represents to, and covenants and agrees with, the
Lessor that:

      6.1.  Formation and Authority of the Guarantor.

      (a)   The Guarantor is a corporation duly organized, validly existing and
in good standing under the laws of Delaware. The Guarantor has all requisite
corporate power to own and operate its properties and to carry on its business
as now conducted and as proposed to be conducted and is duly qualified to do
business and is in good standing in each jurisdiction where such qualification
is necessary or desirable in order to carry out its business as now conducted
and as proposed to be conducted;

      (b)   The Guarantor is duly authorized to make and enter into this
Guaranty and all of the other Lease Documents to which the Guarantor is a party
and to carry out the transactions contemplated therein. This Guaranty and all of
the other Lease Documents to which the Guarantor is a party have each been duly
executed and delivered by the Guarantor, and each is a legal, valid and binding
obligation of the Guarantor, enforceable in accordance with its terms;

      6.2.  The Lessee as Subsidiary.

      The Lessee is a wholly-owned Subsidiary of the Guarantor.

      6.3.  No Violations.

      The execution, delivery and performance of this Guaranty and the other
Lease Documents and the consummation of the transactions thereby contemplated
shall not result in any breach of, or constitute a default under, or result in
the acceleration of, or constitute an event which, with notice or passage of
time could result in default or acceleration of any obligation of the Guarantor
or any other contract, mortgage, lien, lease, agreement, instrument, franchise,
arbitration award, judgment, decree, bank loan or credit agreement, trust
indenture or other instrument to which the Guarantor is a party or by which the

                                      -11-
<PAGE>
Guarantor may be bound or affected and do not violate or contravene any Legal
Requirement;

      6.4.  No Consent or Approval.

      Except as already obtained or filed, as the case may be, no consent or
approval or other authorization of, or exemption by, or declaration or filing
with, any Person and no waiver of any right by any Person is required to
authorize or permit, or is otherwise required as a condition to the Guarantor's
execution and delivery of this Guaranty or any of the other Lease Documents to
which it is a party and the performance of its obligations thereunder, or as a
condition to the validity (assuming the due authorization, execution and
delivery by the Lessor of the Lease and the other Lease Documents to which it is
a party) or enforceability of any of the same and/or the first priority of any
Liens granted thereunder;

      6.5.  Pending Litigation.

      To the best of the Guarantor's knowledge and belief, there are no actions,
suits, investigations or proceedings pending or threatened:

            i.    against or affecting any portion of the Leased Property or the
      ownership, construction, development, maintenance, management, repair,
      use, occupancy, possession or operation thereof in excess of Twenty-Five
      Thousand Dollars ($25,000) and not covered by insurance; or

            ii.   which may involve or affect the validity, priority or
      enforceability of this Guaranty, the Lease or any of the other Lease
      Documents, at law or in equity, or before or by any arbitrator or
      Governmental Authority;

      6.6.  Commercial Acts.

      The Guarantor's performance of and compliance with the obligations and
conditions set forth herein and the other Lease Documents to which it is a party
will constitute commercial acts done and performed for commercial purposes; and

      6.7.  Filing of Tax Returns.

      The Guarantor has filed all federal, state and local tax returns which are
required to be filed as to which extensions are not currently in effect and has
paid all taxes, assessments,

                                      -12-
<PAGE>
impositions, fees and other governmental charges (including interest and
penalties) which have become due pursuant to such returns or pursuant to any
assessment or notice of tax claim or deficiency received by the Guarantor. No
tax liability has been asserted by the Internal Revenue Service against the
Guarantor or any other federal, state or local taxing authority for taxes,
assessments, impositions, fees or other governmental charges (including interest
or penalties thereon) in excess of those already paid.

      7.    Continuing Representations and Warranties: All representations and
warranties contained in this Guaranty shall constitute continuing
representations and warranties which shall remain true, correct and complete as
long as this Guaranty is in force and effect. Notwithstanding the provisions of
the foregoing sentence but without derogation from any other terms and
provisions of this Guaranty, including, without limitation, those terms and
provisions containing covenants to be performed or conditions to be satisfied on
the part of the Guarantor, the representations and warranties contained in
Section 6.5 and in the second sentence of Section 6.7 hereof shall not
constitute continuing representations and warranties hereunder.

      8.    No Contest with the Lessor. No set-off, counterclaim, reduction or
diminution of any obligation, or any claim or defense of any kind or nature
which the Guarantor has or may have against the Lessee, any other member of the
Leasing Group, any of the Related Parties or the Lessor shall be available
hereunder to the Guarantor. The Guarantor shall not assert and hereby waives any
right whatsoever that the Guarantor may have at law or in equity, including,
without limitation, any right of subrogation or to seek contribution,
indemnification or any other form of reimbursement from the Lessee, any other
endorser, surety or guarantor of any of the Obligations or any other Person now
or hereafter primarily or secondarily liable for any of the Obligations. The
Guarantor shall not, in any proceedings under the Bankruptcy Code or insolvency
proceedings of any nature, prove in competition with the Lessor in respect of
any payment hereunder or be entitled to have the benefit of any counterclaim or
proof of claim or dividend or payment by or on behalf of the Lessee, any other
member of the Leasing Group or any of the Related Parties or the benefit of any
other security for any obligation which, now or hereafter, the Guarantor may
hold in competition with the Lessor.

      9.    Set-off. In addition to any rights now or hereafter granted under
any agreement or applicable law and not by way of

                                      -13-
<PAGE>
limitation of any such rights, upon the occurrence of any Lease Default,
including, without limitation, any default by the Guarantor hereunder, the
Lessor and the other Meditrust Entities are hereby authorized at any time or
from time to time, without presentment, demand, protest or other notice of any
kind to the Guarantor or to any other Person, all of which are hereby expressly
waived, to set off and to appropriate and apply any and all deposits and any
other indebtedness at any time held by or owing to the Lessor (or any of the
other Meditrust Entities) to or for the credit or the account of the Guarantor
against and on account of the obligations and liabilities of the Guarantor to
the Lessor or any of the other Meditrust Entities under this Guaranty or
otherwise, irrespective of whether or not the Lessor or any of the other
Meditrust Entities shall have made any demand hereunder or under any Related
Party Agreement and although said obligations, liabilities or claims, or any of
them, may then be contingent or unmatured and without regard to the availability
or adequacy of other collateral. The Guarantor also grants to the Lessor (and
the other Meditrust Entities) a security interest in all of the Guarantor's
deposits, securities and other property at any time and from time to time, in
the possession of the Lessor (or any of the other Meditrust Entities) and, upon
the occurrence of any Lease Default, the Lessor and the other Meditrust Entities
may exercise all rights and remedies of a secured party under the Massachusetts
Uniform Commercial Code. The Lessor and the other Meditrust Entities shall have
no duty to take steps to preserve rights against prior parties as to such
securities or other property.

      The Guarantor hereby agrees that all collateral now or hereafter granted
as security for any indebtedness of the Guarantor to the Lessor and/or the other
Meditrust Entities shall be deemed to be additional collateral securing the
Obligations.

      10.   Waivers. The Guarantor waives presentment for payment, demand,
protest, notice of nonpayment, notice of dishonor, protest of any dishonor,
suretyship defenses, notice of protest and protest of the Lease Documents and,
and all other notices in connection with (a) the delivery or the acceptance of
the Lease Documents and any reliance thereon and/or (b) the performance, default
(except notice of default as specifically elsewhere required under any of the
Lease Documents) or enforcement of any obligation under the Lease Documents, and
agrees that its liability shall be unconditional without regard to the liability
of any other party and shall not be in any manner affected by any indulgence,
extension of time, renewal,

                                      -14-
<PAGE>
waiver or modification granted or consented to by the Lessor; and the Guarantor
consents to any and all extensions of time, renewals, waivers or modifications
that may be granted or consented to by the Lessor with respect to the payment or
performance of any obligations under the Lease Documents and to the release of
the Collateral (or any part thereof), with or without substitution, and agrees
that additional makers, endorsers, guarantors or sureties may become parties to
the Lease Documents without notice to the Guarantor or affecting the liability
of the Guarantor hereunder or under any of the other Lease Documents to which
the Guarantor is a party.

      11.   Indemnification. Except with respect to the gross negligence or
willful misconduct of the Lessor or any of the other Indemnified Parties, as to
which no indemnity is provided, the Guarantor hereby agrees to defend with
counsel acceptable to the Lessor, indemnify and hold harmless the Lessor and
each of the other Indemnified Parties from and against all damages, losses,
claims, liabilities, obligations, penalties, causes of action, costs and
expenses (including, without limitation, attorneys' fees, court costs and other
expenses of litigation) suffered by, or claimed or asserted against, the Lessor
or any of the other Indemnified Parties, directly or indirectly, based on,
arising out of or resulting from (a) the use and occupancy of the Leased
Property or any business conducted therein, (b) any act, fault, omission to act
or misconduct by (i) any member of the Leasing Group, (ii) any Affiliate of the
Lessee or (iii) any employee, agent, licensee, business invitee, guest,
customer, contractor or sublessee of any of the foregoing parties, relating to,
directly or indirectly, the Leased Property, (c) any accident, injury or damage
whatsoever caused to any Person, including, without limitation, any claim of
malpractice, or to the property of any Person in or about the Leased Property or
outside of the Leased Property where such accident, injury or damage results or
is claimed to have resulted from any act, fault, omission to act or misconduct
by any member of the Leasing Group or any Affiliate of the Lessee or any
employee, agent, licensee, contractor or sublessee of any of the foregoing
parties, (d) any Lease Default (including, without limitation, the failure of
the Lessee to pay the Reimbursement Amount to the Lessor), (e) any claim brought
or threatened against any of the Indemnified Parties by any member of the
Leasing Group or by any other Person on account of (i) the Lessor's relationship
with any member of the Leasing Group pertaining in any way to the Leased
Property and/or the transaction evidenced by the Lease Documents and/or (ii) the
Lessor's negotiation of, entering into and/or performing any of

                                      -15-
<PAGE>
its obligations and/or exercising any of its right and remedies under any of the
Lease Documents, (f) any attempt by any member of the Leasing Group or any
Affiliate of the Lessee to transfer or relocate any of the Permits to any
location other than the Leased Property and/or (g) the enforcement of this
indemnity. Any amounts which become payable by the Guarantor under this Section
11 shall be a demand obligation of the Guarantor to the Lessor. The indemnity
provided for in this Section 11 shall survive any termination of this Guaranty.

      12.   Notices. Any notice, request, demand, statement or consent made
hereunder shall be in writing and shall be deemed duly given if personally
delivered, sent by certified mail, return receipt requested, or sent by a
nationally recognized commercial overnight delivery service with provisions for
a receipt, postage or delivery charges prepaid, and shall be deemed given when
postmarked or placed in the possession of such mail or delivery service and
addressed as follows:

If to the Guarantor:          Balanced Care Corporation
                        1215 Manor Drive
                        Mechanicsburg, Pennsylvania  17055
                        Attn:  President

With copies to:               Balanced Care Corporation
                        1215 Manor Drive
                        Mechanicsburg, Pennsylvania  17055
                        Attn:  General Counsel

                        Kirkpatrick & Lockhart
                        Henry W. Oliver Building
                        535 Smithfield Street
                        Pittsburgh, Pennsylvania  15222-2312
                        Attn:  Steven Adelkoff, Esq.

If to the Lessor:             Meditrust Acquisition Company II LLC
                        197 First Avenue
                        Needham Heights, Massachusetts  02494
                        Attn:  President

With copies to:               Meditrust Acquisition Company II LLC
                        197 First Avenue
                        Needham Heights, Massachusetts  02494
                        Attn:  General Counsel

                        Nutter, McClennen & Fish, LLP
                        One International Place

                                      -16-
<PAGE>
                        Boston, Massachusetts  02110-2699
                        Attn:  Marianne Ajemian, Esq.

or at such other place as any of the parties hereto may from time to time
hereafter designate to the others in writing. Any notice given to the Guarantor
by the Lessor at any time shall not imply that such notice or any further or
similar notice was or is required.

      13.   Governing Law. This Guaranty shall be construed, and the rights and
obligations of the Lessor and the Guarantor shall be determined, in accordance
with the laws of the Commonwealth of Massachusetts.

      The Guarantor hereby consents to personal jurisdiction in the courts of
the Commonwealth of Massachusetts and the United States District Court for the
District of Massachusetts as well as to the jurisdiction of all courts from
which an appeal may be taken from the aforesaid courts, for the purpose of any
suit, action or other proceeding arising out of or with respect to any of the
Lease Documents, the negotiation and/or consummation of the transactions
evidenced by the Lease Documents, the Lessor's relationship of any member of the
Leasing Group in connection with the transactions evidenced by the Lease
Documents and/or the performance of any obligation or the exercise of any remedy
under any of the Lease Documents and expressly waives any and all objections the
Guarantor may have as to venue in any of such courts.

      14.   General Provisions; Rules of Construction. The provisions set forth
in Article 23 and Sections 2.2, 11.5.4, 16.8 through 16.10, 17.2, 24.2 through
24.10 and 24.12 of the Lease are hereby incorporated herein by reference,
mutatis, mutandis and shall be applicable to this Guaranty as if set forth in
full herein.

                [REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

                                      -17-
<PAGE>
      IN WITNESS WHEREOF, the Guarantor has executed this Guaranty as an
instrument under seal as of the 14th day of March, 2002.

WITNESS:                      GUARANTOR:

                              BALANCED CARE CORPORATION, a Delaware
                              corporation

/s/Jaynelle D. Covert         By:/s/Robin L. Barber (SEAL)
Name: Jaynelle D. Covert           Name: Robin L. Barber
                                   Title: Senior Vice President,
                                   Legal Counsel and Assistant
                                   Secretary

                                      -18-

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