Document:

<PAGE>
Exhibit 10.1

                           SEVENTH AMENDMENT AGREEMENT

                  This SEVENTH AMENDMENT AGREEMENT (this "Amendment"), dated as
of November 19, 2001, among Balanced Care Corporation, a Delaware corporation
(the "Company"), VXM Investments Limited, a Cayman Islands corporation ("VXM"),
HR Investments Limited, a Cayman Islands corporation, and RH Investments
Limited, a Cayman Islands corporation (each, a "Lender" and collectively, the
"Lenders"), and VXM, as agent for the Lenders (in such capacity, the "Agent"),
amends the Bridge Loan Agreement, dated as of April 4, 2001, among the parties
hereto, as previously amended pursuant to the Amendment Agreement, dated as of
June 12, 2001, among the parties hereto, as further amended pursuant to the
Second Amendment Agreement, dated as of July 6, 2001, among the parties hereto,
as further amended pursuant to the Third Amendment Agreement, dated as of August
8, 2001, among the parties hereto, as further amended pursuant to the Fourth
Amendment Agreement, dated as of September 6, 2001, among the parties hereto, as
further amended pursuant to the Fifth Amendment Agreement, dated as of October
4, 2001, among the parties hereto, as further amended pursuant to the Sixth
Amendment Agreement, dated as of October 29, 2001, among the parties hereto (as
so amended and as may be further amended, modified or supplemented from time to
time, the "Loan Agreement"). Capitalized terms used and not otherwise defined
herein shall have the meanings ascribed to them in the Loan Agreement.

                  WHEREAS, the Company has informed the Agent of its desire to
amend the Loan Agreement to provide for (i) additional funds to be loaned to it
pursuant thereto, and (ii) an extension of the Maturity Date thereunder; and

                  WHEREAS, the Company will execute and deliver such other
documents and instruments necessary to carry out the terms of the Loan
Agreement.

                  NOW, THEREFORE, for valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, and subject to the fulfillment of
the conditions set forth below, the parties hereto agree as follows:

                  SECTION 1.  AMENDMENTS TO LOAN AGREEMENT.
<PAGE>
                  1.1 The definition of "Loan Commitment" set forth in the Loan
Agreement is hereby amended and restated to read in its entirety as follows:

                           "'Loan Commitment' means an aggregate amount equal
to up to $34,503,524."

                  1.2 The table set forth in Section 2.1 of the Loan Agreement
is hereby deleted and replaced in its entirety with the following:

<TABLE>
<CAPTION>
Advance Date:                                               Amount of Loan:

<S>                                                        <C>
April 4, 2001                                                 $26,003,524
May 1, 2001                                                   $   750,000
May 30, 2001                                                  $ 1,100,000
June 12, 2001                                                 $ 1,250,000
July 6, 2001                                                  $   600,000
August 8, 2001                                                $   700,000
September 6, 2001                                             $   500,000
September 25, 2001                                            $   300,000
October 4, 2001                                               $ 1,200,000
Not later than                                                $   900,000
October 31, 2001
November 19, 2001                                             $   450,000
Not later than                                             up to $750,000
November 30, 2001
</TABLE>

                  1.3 Section 3.2 of the Loan Agreement is hereby amended by
deleting therefrom the date "November 16, 2001" and replacing it with "December
15, 2001."

                  SECTION 2. MISCELLANEOUS.

                  2.1  The Company represents and warrants to the Agent
that:

                                       2
<PAGE>
                  (a) The Company has the corporate power and authority to
execute, deliver and carry out the terms and provisions of this Amendment and
the transactions contemplated hereby and has taken or caused to be taken all
necessary corporate action to authorize the execution, delivery and performance
of this Amendment and the transactions contemplated hereby;

                  (b) No consent of any other person (including, without
limitation, shareholders or creditors of the Company), and no action of, or
filing with, any governmental or public body or authority is required to
authorize, or is otherwise required in connection with the execution, delivery
and performance of this Amendment;

                  (c) This Amendment has been duly executed and delivered on
behalf of the Company by a duly authorized officer, and constitutes a legal,
valid and binding obligation of the Company enforceable in accordance with its
terms, subject to bankruptcy, reorganization, insolvency, moratorium and other
similar laws affecting the enforcement of creditors' rights generally and the
exercise of judicial discretion in accordance with general principles of equity;
and

                  (d) The execution, delivery and performance of this Amendment
will not violate any law, statute or regulation, or any order or decree of any
court or governmental instrumentality, or conflict with, or result in the breach
of, or constitute a default under any contractual obligation of the Company.

                  2.2 Except as herein expressly amended, the Loan Agreement is
ratified and confirmed in all respects and shall remain in full force and effect
in accordance with its terms.

                  2.3 All references to the Loan Agreement in the Loan
Agreement, the Security Documents and the other documents and instruments
delivered pursuant to or in connection therewith shall mean such agreements as
amended hereby and as each may in the future be amended, restated, supplemented
or modified from time to time.

                  2.4 The Company hereby irrevocably and unconditionally
ratifies and confirms in favor of the Agent and the Lenders the grant of a
security interest in the Collateral contained in the Security Documents, which
security interest shall continue in full force and effect without interruption
and which shall continue to

                                       3
<PAGE>
be applicable to all of the Company's obligations under the Loan Agreement as
amended hereby.

                  2.5 This Amendment may be executed by the parties hereto
individually or in combination, in one or more counterparts, each of which shall
be an original and all of which shall constitute one and the same agreement.

                  2.6 Delivery of an executed counterpart of a signature page by
telecopier shall be effective as delivery of a manually executed counterpart.

                  2.7 This Amendment shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.

                  2.8 The parties hereto shall, at any time and from time to
time following the execution of this Amendment, execute and deliver all such
further instruments and take all such further action as may be reasonably
necessary or appropriate in order to carry out the provisions of this Amendment.

                                    * * * * *

                                       4
<PAGE>
                                       THE COMPANY:

                                       BALANCED CARE CORPORATION

                                       By:/s/Robin L. Barber
                                          Name:Robin L. Barber
                                          Title:Senior Vice
                                          President, Legal Counsel &
                                          Assistant Secretary

                                       THE LENDERS:

                                       VXM INVESTMENTS LIMITED, as
                                                   Lender

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

                                       HR INVESTMENTS LIMITED

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

                                       RH INVESTMENTS LIMITED

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

                                       THE AGENT:

                                       VXM INVESTMENTS LIMITED, as
                                                    Agent

                                       By:/s/J.B. Unsworth
                                          Name:
                                          Title:<PAGE>
Exhibit 10.2

THIS NOTE HAS NOT BEEN REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933 OR ANY
STATE SECURITIES LAW. NEITHER THIS NOTE NOR ANY PORTION HEREOF OR INTEREST
HEREIN MAY BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF
UNLESS THE SAME IS REGISTERED UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES
LAW, OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND BALANCED
CARE CORPORATION SHALL HAVE RECEIVED, AT THE EXPENSE OF THE HOLDER HEREOF,
EVIDENCE OF SUCH EXEMPTION REASONABLY SATISFACTORY TO BALANCED CARE CORPORATION
(WHICH MAY INCLUDE, AMONG OTHER THINGS, AN OPINION OF COUNSEL SATISFACTORY TO
BALANCED CARE CORPORATION).

THE INDEBTEDNESS EVIDENCED BY THIS INSTRUMENT IS SUBORDINATED TO THE PRIOR
PAYMENT IN FULL OF THE SENIOR DEBT (AS DEFINED IN THE SUBORDINATION AGREEMENT
HEREINAFTER REFERRED TO) PURSUANT TO, AND TO THE EXTENT PROVIDED IN, THAT
CERTAIN SUBORDINATION AGREEMENT, DATED AS OF APRIL 4, 2001, AMONG BALANCED CARE
CORPORATION, HELLER HEALTHCARE FINANCE, INC., VXM INVESTMENTS LIMITED, HR
INVESTMENTS LIMITED, RH INVESTMENTS LIMITED AND THE OTHER PARTIES IDENTIFIED
THEREIN (THE "SUBORDINATION AGREEMENT"). ANY HOLDER OF THIS INSTRUMENT SHALL BE
DEEMED TO BE BOUND BY, AND SUBJECT TO, THE TERMS OF THE SUBORDINATION AGREEMENT.

                                     NOTE

$450,000                                                     November 19, 2001

            FOR VALUE RECEIVED, the undersigned, Balanced Care Corporation, a
Delaware corporation (the "Maker"), hereby promises to pay to the order of VXM
Investments Limited, a Cayman Islands corporation, as agent (the "Agent") for
the Lenders identified in the Bridge Loan Agreement, dated as of April 4, 2001,
among the Company, such Lenders and the Agent, as amended as of June 12, 2001,
as further amended as of July 6, 2001, as further amended as of August 8, 2001,
as further amended as of September 6, 2001, as further amended as of October 4,
2001, as further amended as of October 29, 2001, as further amended as of the
date hereof (as the same may be further amended, modified or supplemented from
time to time in accordance with its terms, the "Loan Agreement"), at the office
of the Agent c/o Unsworth & Associates, Herengracht 483, Amsterdam, The
Netherlands, to be distributed in accordance with the terms of the Loan
Agreement, the principal sum of FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000),
in lawful money of the United

<PAGE>

States of America in immediately available funds, and to pay interest from the
date thereof on the principal amount hereof from time to time outstanding, in
like funds, at said office, at a rate or rates per annum and, in each case,
payable on such dates as determined pursuant to the terms of the Loan Agreement.

            The Maker promises to pay interest, on demand, on any overdue
principal and fees and, to the extent permitted by law, overdue interest from
their due dates at a rate or rates determined as set forth in the Loan
Agreement.

            The Maker hereby waives diligence, presentment, demand, protest and
notice of any kind whatsoever. The non-exercise by the holder of any of its
rights hereunder in any particular instance shall not constitute a waiver
thereof in that or any subsequent instance.

            All payments and prepayments of the principal hereof and interest
hereon and the respective dates thereof shall be endorsed by the holder hereof
on the schedule attached hereto and made a part hereof, or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, however, that the
failure of the holder hereof to make such a notation or any error in such a
notation shall not in any manner affect the obligations of the Maker to make
payments of principal and interest in accordance with the terms of this Note and
the Loan Agreement.

            This Note is one of the Notes referred to in the Loan Agreement (and
is secured by the Collateral referred to therein), which, among other things,
contains provisions for the acceleration of the maturity hereof upon the
happening of certain events, for optional and mandatory prepayment of the
principal hereof prior to the maturity hereof and for the amendment or waiver of
certain provisions of the Loan Agreement, all upon the terms and conditions
therein specified. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CHOICE OF LAW DOCTRINE,
AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

                                       2
<PAGE>
                                    BALANCED CARE CORPORATION

                                    By: /s/Robin L. Barber
                                        Name:Robin L. Barber
                                        Title: Senior Vice President,
                                        Legal Counsel & Assistant
                                        Secretary

                                       3
<PAGE>
                                Loans and Payment

<TABLE>
<CAPTION>
                                                          Unpaid
                                                          Principal
              Amount                 Payments             Balance of        Person Making
Date          of Loan           Principal Interest        Note              Notation
<S>           <C>               <C>                       <C>               <C>

</TABLE>

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