Document:

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Exhibit 10.165
                              CONSULTING AGREEMENT

THIS AGREEMENT dated as of the 16th day of July, 2001 between BALANCED CARE
CORPORATION, a corporation incorporated under the laws of the State of Delaware
("BCC") and RETIREMENT RESIDENCES ADVISOR INC., a corporation incorporated under
the laws of the Province of Ontario (the "Consultant").

WHEREAS the Consultant has certain expertise in the management and operation of
assisted living facilities;

AND WHEREAS BCC wishes to develop and implement a service model similar to that
utilized by the Consultant or its affiliates;

AND WHEREAS BCC has requested that the Consultant provide advice and assistance
to BCC pursuant to this Consulting Agreement;

NOW THEREFORE IN CONSIDERATION of the mutual covenants herein contained, the
parties agree as follows:

Article I - CONSULTING SERVICES

1.1      BCC hereby engages the Consultant to provide and the Consultant shall
         provide, during the term of this Consulting Agreement, the services set
         forth in Schedule "A" hereto.

1.2      For greater certainty, the parties acknowledge and agree that all
         decisions regarding strategic matters and operations of BCC shall be
         determined by BCC's board of directors in their sole discretion.

Article II - FEES and EXPENSES

2.1      BCC shall pay to the Consultant, as compensation for the services
         rendered to BCC pursuant to this Consulting Agreement, a monthly
         consulting fee of US$35,000 payable in arrears on the last business day
         of each month during the term of this Consulting Agreement.

2.2      In addition to the Consulting fee payable pursuant to Section 2.1, BCC
         hereby agrees to reimburse the Consultant for all reasonable
         out-of-pocket travel expenses incurred by the Consultant or its
         officers and employees in performing any services under this
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         Consulting Agreement. Such travel expenses shall be paid in accordance
         with BCC's reimbursement policy.

Article III - INFORMATION and indemnity

3.1      In order to enable the Consultant to perform its services pursuant to
         this Consulting Agreement, BCC shall provide such information as is
         reasonably requested from the Consultant from time to time during the
         term of this Consulting Agreement.

3.2      Provided that the Consultant acts in good faith, BCC shall indemnify
         and save the Consultant and its employees, agents, officers, directors
         and direct and indirect shareholders harmless from all liabilities,
         actions, causes of action, claims, demands, suits, proceedings, losses,
         costs and damages whatsoever arising out of or in connection with its
         services pursuant to the Consulting Agreement or otherwise on behalf of
         BCC.

Article IV - TERM AND TERMINATION

4.1      This Consulting Agreement shall become effective as of the date first
         written above and shall continue in effect for a period of 120 days
         therefrom. Unless the Consulting Agreement is terminated in accordance
         with Section 4.2, the term of this Consulting Agreement shall be
         automatically renewed for additional 120 day terms.

4.2      This Consulting Agreement may be terminated as follows:

    (a)  by BCC forthwith upon notice to the Consultant if proceedings are
         commenced and not diligently contested in good faith for the
         bankruptcy, receivership, dissolution, liquidation or winding up of the
         Consultant; or

    (b)  by either party, upon not less than 30 days' prior written notice to
         the other.

Article V - NOTICE

5.1      Any notice or other communication required or permitted to be given
         hereunder shall be in writing unless some
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         other method of giving such notice or other communication is expressly
         accepted by the party to whom it is given, and may be given in writing
         by personal delivery, electronic messaging or by telecopier addressed
         follows:

    (a)  To BCC:

                  1215 Manor Drive
                  Mechanicsburg, PA 17055
                  Attention:    Robin Barber
                  Telecopier:   717-796-6294
                  E-Mail:  rbarber@balcare.com

    (b)  To the Consultant:

                  South Tower, Suite 601
                  175 Bloor Street East
                  Toronto, Ontario
                  M5W 3R8
                  Attention:    President
                  Telecopier:   416-929-1340
                  E-Mail:  mfraser@cplodges.com

or at such other address as may be given by either of them to the other in
writing from time to time.

Article VI - ADDITIONAL COVENANTS

6.1      During the term of this Consulting Agreement, the Consultant agrees to
         provide BCC with such information as is necessary to enable BCC to
         comply with the securities laws of the United States, including without
         limitation, the requirements under the Securities Exchange Act of 1934,
         as amended. The Consultant further acknowledges and agrees that under
         certain circumstances, this Consulting Agreement and the terms and
         conditions thereof, may need to be disclosed.

6.2      In connection with the Consultant's agreement to provide services under
         this Consulting Agreement, BCC will be furnishing certain confidential
         and/or proprietary information about BCC to the Consultant
         (collectively, the "Information"). The Consultant agrees that it will
         keep the information confidential and that the information shall not,
         without the prior written consent of BCC, be disclosed by the
         Consultant or any of its affiliates, subsidiaries, partners, agents or
         employees (collectively, the
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         "Representatives") and shall not be used by the Consultant or any of
         its Representatives other than in connection with rendering the
         services to be provided under the Agreement. Notwithstanding anything
         herein to the contrary, no obligation or liability shall accrue under
         this Section 6.2 with respect to any of the information contained in
         the information to the extent that such information (1) is or becomes
         publicly available other than as a result of acts by the Consultant or
         its Representatives in violation of this Agreement, (2) is in the
         possession of the Consultant or its Representatives prior to disclosure
         by BCC or (3) is, on the advice of counsel, required to be disclosed by
         law.

6.3      The Consultant acknowledges and agrees that United States securities
         laws prohibit any person or entity that has material non-public
         information ("Material Information") about a company from trading in
         the securities of such company or from communicating such Material
         Information to any other third party under circumstances in which it is
         reasonably foreseeable that such third party is likely to trade in the
         securities of such company. The Consultant agrees not to use such
         Material Information in the trading of securities of BCC or to
         communicate such Material Information to others who so trade in
         securities of BCC.

6.4      THE PARTIES HEREBY IRREVOCABLY SUBMIT AND CONSENT TO THE NON-EXCLUSIVE
         JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT HAVING
         JURISDICTION OVER CUMBERLAND COUNTY, PENNSYLVANIA FOR ANY ACTION OR
         PROCEEDING TO ENFORCE OR DEFEND ANY MATTER ARISING FROM OR RELATED TO
         THIS AGREEMENT.

Article VII - MISCELLANEOUS

7.1      The provisions of this Consulting Agreement shall be construed and
         interpreted in accordance with the laws of the Province of Ontario as
         at the time in effect.

7.2      This Consulting Agreement shall not: (I) be changed or modified in
         whole or in part, except by instrument in writing signed by the parties
         hereto or their respective successors or permitted assigns otherwise as
         provided herein; and (II) be assignable by either party hereto without
         the consent in writing of the other
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         party being first had and obtained. Notwithstanding the foregoing, the
         Consultant may assign this Consulting Agreement to an affiliate (within
         the meaning of the Securities Act (Ontario)) of the Consultant,
         provided such affiliate enters into a similar agreement with BCC.

7.3      The Consultant shall perform its duties hereunder as an independent
         contractor and not as an agent of BCC or of the directors thereof. BCC
         and the Consultant are not partners or joint venturers with each other
         and nothing herein shall be construed so as to make them partners or
         joint venturers or impose any liability as such on either of them.

         IN WITNESS WHEREOF the parties hereto have executed this Consulting
Agreement as of the day and year first above written.

                                         BALANCED CARE CORPORATION

                                         Per: /s/ Brad E. Hollinger

                                         RETIREMENT RESIDENCES ADVISOR INC.

                                         Per: /s/ Barry Reichmann
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                                  SCHEDULE "A"
                               Consulting Services

    -    Assist BCC's Chief Executive Officer and management in reviewing the
         lease-up and operations of BCC's facilities

    -    Advise BCC's Chief Executive Officer and management regarding the
         development and implementation of a service model similar to that
         utilized by the Consultant or its affiliates

    -    Provide recommendations to BCC regarding methods to reduce costs and
         otherwise increase profitability<PAGE>   1
Exhibit 10.166
                              IPC Advisors S.a.r.l.
                            c/o Unsworth & Associates
                                 Herengracht 483
                           Amsterdam, The Netherlands

                                             April 29, 2001

Balanced Care Corporation
1215 Manor Drive
Mechanicsburg, PA.  17055
Attention:  Brad E. Hollinger, CEO

Ladies and Gentlemen:

                  In response to your concerns related to the size of the rights
offering previously discussed and the attendant dilution, we have prepared this
Letter of Intent (this "Letter") which sets forth the principal terms upon which
IPC Advisors S.a.r.l. or one or more of its affiliates ("IPC") would be prepared
to assist Balanced Care Corporation ("BCC") in its financial restructuring. We
understand that the board of directors of BCC will approve a 1 for 20 reverse
stock split (the "Stock Split") and will resolve to present the Stock Split to
BCC's stockholders for approval as promptly as practicable.

                  BCC will use its commercially reasonable best efforts to enter
into transactions relating to Meditrust, Ocwen, HCN, HCRT and HCPI and the
"black boxes" set forth on Schedule 1 hereto, among others, on terms
satisfactory to IPC in its sole discretion.

A.       Debt Financing.

         (i)      IPC will agree to provide BCC with additional financing (the
         "Bridge Loan") in an amount of up to approximately $54,000,000, the
         proceeds of which will be used:

                  -        to provide cash deposits for the acquisition of the
                           Meditrust Properties;
                  -        to provide the Ocwen Deposit;
                  -        to repay the principal and interest under the Interim
                           Loan referred to in Section A(iv);

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                  -        to provide certain "black box" payments;
                  -        to repay the HCN Sub Debt;
                  -        to repay the HCRT Sub Debt;
                  -        to pay the Commitment Fee referred to in Section
                           A(iv);
                  -        to provide BCC with working capital; and
                  -        for other purposes.

         IPC's commitment to fund the Bridge Loan will be subject to there being
         no material adverse change in the financial condition, business or
         results of operations of BCC or the financial markets.

         (ii)     The Bridge Loan will be provided as needed following the
         approval of the restructuring by BCC stockholders and prior to the
         consummation of the Rights Offering (as defined below).

         (iii)    The Bridge Loan will have a four-month term and will bear
         interest at a rate of 12% per annum. Interest will accrue and will be
         payable at the same time as the principal of the Bridge Loan. Subject
         to necessary approvals, the Bridge Loan will be secured by a pledge of
         the shares of the entities owning all of the properties currently
         securing BCC's outstanding indebtedness to Heller HealthCare Finance,
         Inc. ("Heller") as well as a pledge of the shares of the entities
         owning the properties acquired from Meditrust, the HCN properties and
         any other assets that are unencumbered (collectively, the
         "Collateral"). In addition, the Company will use its commercially
         reasonable best efforts to obtain consent to grant a "second" or
         subordinated security interest on encumbered assets (to the extent such
         subordinated security interest is obtained, the "Additional
         Collateral").

         (iv)     As consideration for agreeing to provide the Bridge Loan and
         for providing the financing pursuant to the Loan Agreement dated April
         4, 2001 (the "Interim Loan"), BCC will pay to IPC a commitment fee
         equal to $1,080,000 (the "Commitment Fee").

         (v)      As further consideration for providing the Bridge Loan and
         Interim Loan, BCC will conduct the Rights Offering.

         (vi)     BCC will use its commercially reasonable best efforts to raise
         additional senior financing secured by its properties.

B.       Rights Offering.

         (i)      As soon as practicable, BCC will conduct a rights offering to
         its current stockholders offering them the right

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         to participate in a new financing (the "Rights Offering"). The actual
         size of the Rights Offering will be determined by BCC and IPC and will
         be calculated so that the proceeds therefrom will provide the funds
         required to:

                  -        repay the principal and interest under the Bridge
                           Loan referred to in Section A(i) hereof;
                  -        repay the indebtedness to Heller;
                  -        provide BCC with additional working capital; and
                  -        pay transaction fees and expenses.

         Based on current estimated refinancing proceeds, the Rights Offering
         will be for approximately $55,000,000. The rights will be transferable.

         (ii)     The Rights Offering will take the form of secured convertible
         debentures (the "Debentures") with a maturity of 5 years bearing
         interest at a rate of 12% per annum payable in kind; provided that in
         the event that sufficient cash is available to make such interest
         payments currently, the interest can be paid in cash at BCC's option.
         Additionally, BCC will have the right to prepay the Debentures at any
         time. The Debentures will be secured by the Collateral and the
         Additional Collateral.

         (iii)    The Debentures will be convertible into BCC common stock at a
         price of $6 per share (on a post-Stock Split basis). In the event that
         the per share price of the BCC common stock on the American Stock
         Exchange exceeds $9.00 for each of 30 consecutive trading days (the
         "Applicable Trading Period"), BCC will have the right to require each
         holder to convert its Debenture by delivering written notice to each
         holder within 10 days from the end of the Applicable Trading Period.

         (iv)     All participating BCC stockholders (including IPC) will have
         the right, but not the obligation, to purchase its pro rata share of
         any portion of the Rights Offering not subscribed for by other BCC
         stockholders. IPC will agree to subscribe for rights in an amount
         sufficient to repay the Bridge Loan.

C.       Confidentiality.

         Except as required by law and except with respect to disclosures
         approved by IPC and BCC, IPC and BCC shall keep confidential the terms
         of this Letter.

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D.       Fiduciary Duties.

         Nothing contained in this Letter shall restrict, prohibit or otherwise
         prevent the board of directors of BCC from soliciting or responding to
         any financing or strategic alternatives for BCC if the board of
         directors reasonably determines that the failure to do so would
         constitute a violation of its fiduciary duties to BCC and/or BCC's
         stockholders under applicable law.

E.       Stockholder Approval.

         IPC agrees to vote in favor of the transactions contemplated by this
         Letter that are submitted to BCC stockholders for approval.

                  Other than the provisions of Section C hereof, the provisions
of this Letter are non-binding. The parties hereto agree that unless and until
mutually satisfactory definitive documents have been executed and delivered,
neither party shall have any legal obligation of any kind with respect to the
transactions described in this Letter by virtue of this Letter or otherwise.

                                            Very truly yours,

                                            IPC ADVISORS S.A.R.L.

                                            By: /s/ J.B. Unsworth
                                                Name: J.B. Unsworth
                                                Title: Manager

Accepted and agreed to this
4th day of May, 2001

BALANCED CARE CORPORATION

By: /s/ Brad E. Hollinger
   Name: Brad E. Hollinger
   Title: CEO

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                                   Schedule 1

                                   Black Boxes

Ocwen:
Senior Care Operators of Ohio, LLC
Senior Care Operators of Centerville, LLC
Senior Care Operators of Shippensburg, LLC

Meditrust:
Black Box of Dillsburg, Inc.
Black Box of Lewisburg, Inc.
TC Realty of Kingsport, Inc.
TC Realty of Hendersonville, Inc.
TC Realty of Knoxville, Inc.
TC Realty of Chesterfield, Inc.
TC Realty of Blytheville, Inc.
TC Realty of Pocahontas, Inc.
TC Realty Corporation I
TC Realty Corporation IV
TC Realty of Chippewa, Inc.

HCPI:
Assisted Care Operators of Evansville, LLC
Assisted Care Operators of Jackson, LLC
Assisted Care Operators of Anderson, LLC

HCRT:
ALCO VI, L.L.C.
ALCO XI, L.L.C.
ALCO X, L.L.C.
ALCO XI, L.L.C.
Extended Care Operators of Greensboro, LLC
Extended Care Operators of Ravenna, LLC
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May 8, 2001

IPC Advisors S.a.r.l.
c/o Unsworth & Associates
Herengracht 483
Amsterdam, The Netherlands

Ladies and Gentlemen:

         Based on our recent conversation, IPC Advisors S.a.r.l., on behalf of
itself and its affiliates ("IPC"), agrees that the rights offering contemplated
in the Letter Agreement dated April 29, 2001 between IPC and Balanced Care
Corporation may take the form of secured convertible debentures as described in
the Letter Agreement and/or a substantially equivalent security.

         The provisions of this letter are non-binding. The parties hereto agree
that unless and until mutually satisfactory definitive documents have been
executed and delivered, neither party shall have any legal obligation of any
kind with respect to the transactions described in this letter by virtue of this
letter or otherwise.

                                           Very truly yours,

                                           BALANCED CARE CORPORATION

                                           By: /s/ Brad E. Hollinger
                                              Name: Brad E. Hollinger
                                              Title: Chairman and CEO

Accepted and agreed to this
     day of May, 2001

IPC ADVISORS S.A.R.L.

By: /s/ unsigned
    Name:
    Title:

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