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SECURITIES AND EXCHANGE COMMISSION</font></div>
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to Section 13 or 15(d) of</font></div>
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Securities Exchange Act of 1934</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">Date of report (Date of earliest event
reported):</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">August</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;22</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">, 2008</font></font></div>
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CORPORATION</font></div>
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name of registrant as specified in charter)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">3131
Elliott Avenue, Suite 500</font></div>
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Washington 98121</font></div>
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of principal executive offices) (Zip Code)</font></div>
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298-2909</font></div>
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telephone number, including area code)</font></div>
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appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:</font></div>
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Written communications pursuant to Rule&#160;425 under the Securities Act (17
CFR 230.425)</font></div>
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Soliciting material pursuant to Rule&#160;14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
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Pre-commencement communications pursuant to Rule&#160;14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))</font></div>
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pursuant to Rule&#160;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</font></font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item&#160;1.01</font></div>
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              <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Entry
      into a Material Definitive
Agreement.</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On August
25, 2008, Emeritus Corporation (the &#8220;Company&#8221;) entered into a Master Lease and
Security Agreement (the &#8220;Agreement&#8221;) to lease 11 communities from affiliates of
HCP, Inc (collectively, &#8220;HCP&#8221;).&#160;&#160;The communities are comprised of
1,462 units/beds consisting of approximately 21 independent living units, 969
assisted living units, 292 Alzheimer&#8217;s units, and 180 skilled nursing beds and
are located in California, Connecticut, Massachusetts, Maryland, New Jersey, and
Virginia.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Agreement is for a term of ten years with an option to purchase the properties
beginning at the end of the fifth year and continuing through the tenth
year.&#160;&#160;Annual rents are fixed at $17.5, $21.0, $25.0, $28.0, and $30.0
million in years one through five, respectively, and thereafter will increase by
the greater of the increase in the Consumer Price Index (CPI) or
3.0%.&#160;&#160;The purchase option price is based on the greater of fair
market value or $300.0 million (the minimum option price) and contains an
appreciation sharing arrangement if the fair market value exceeds the minimum
option price.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Agreement requires a security deposit of approximately $1.1 million, which
escalates each year in proportion to the annual rent increases.&#160;&#160;The
Agreement also requires that HCP and the Company each contribute $1.5 million in
each of the first two years for capital improvements to the
communities.&#160;&#160;In the third year, capital expenditures are required at
a rate of $550 per unit and increase by $50 per unit each year through the fifth
year and through the sixth year through end of the lease term, increase by the
greater of the increase in CPI or 3.0%.&#160;&#160;The lease contains typical
events of default, including but not limited to, non-payment of rents, default
on any other agreement between the Company and HCP, the Company&#8217;s filing of a
petition in bankruptcy or the Company&#8217;s adjudication as bankrupt, and default or
acceleration of any indebtedness of the Company in excess of $1.0
million.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
closing of this lease transaction is subject to, customary closing conditions,
including but not limited to, a due diligence process, execution of an
operations transfer agreement with the current operator, and approval of the
lease by HCP&#8217;s current lender.&#160;&#160;The Company expects the transaction to
close in the fourth quarter of 2008.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A press
release announcing the Master Lease and Security Agreement is attached hereto as
Exhibit 99.1.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial
Statement <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">and</font>
Exhibits.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Exhibits</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
No.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Description</font></font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;99.1</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">Press Release dated August
      25</font><font style="DISPLAY: inline; FONT-SIZE: 10pt">, 2008, EMERITUS
      ANNOUNCES AGREEMENT TO LEASE ELEVEN
  COMMUNITIES.</font></font></div>
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to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.</font></div>
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      25, 2008</font></div>
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      CORPORATION</font></div>
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            <td valign="bottom" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="right" valign="bottom" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
            </td>
            <td align="left" valign="bottom" width="39%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      Brandstrom</font></div>
            </td>
          </tr>
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      R. Brandstrom</font></div>
            </td>
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      Vice President-Finance, Chief&#160;&#160;Financial Officer and
      Secretary</font></div>
            </td>
          </tr>
          <tr>
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TO EXHIBITS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
No.</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Description</font></font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;99.1</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">Press Release dated August
      25</font><font style="DISPLAY: inline; FONT-SIZE: 10pt">, 2008, EMERITUS
      ANNOUNCES AGREEMENT TO LEASE ELEVEN
  COMMUNITIES.</font></font></div>
            </td>
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hcp8kleaseof11comm0808.htm
U.S.
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C.  20549
____________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
Date of report (Date of earliest event
reported):
August
22
, 2008
EMERITUS
CORPORATION
(Exact
name of registrant as specified in charter)
Washington
1-14012
91-1605464
(State
      or other jurisdiction of incorporation)
(Commission
      File Number)
(IRS
      Employer Identification No.)
3131
Elliott Avenue, Suite 500
Seattle,
Washington 98121
(Address
of principal executive offices) (Zip Code)
(206)
298-2909
(Registrant's
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 1.01
Entry
      into a Material Definitive
Agreement.
On August
25, 2008, Emeritus Corporation (the "Company") entered into a Master Lease and
Security Agreement (the "Agreement") to lease 11 communities from affiliates of
HCP, Inc (collectively, "HCP").  The communities are comprised of
1,462 units/beds consisting of approximately 21 independent living units, 969
assisted living units, 292 Alzheimer's units, and 180 skilled nursing beds and
are located in California, Connecticut, Massachusetts, Maryland, New Jersey, and
Virginia.
The
Agreement is for a term of ten years with an option to purchase the properties
beginning at the end of the fifth year and continuing through the tenth
year.  Annual rents are fixed at $17.5, $21.0, $25.0, $28.0, and $30.0
million in years one through five, respectively, and thereafter will increase by
the greater of the increase in the Consumer Price Index (CPI) or
3.0%.  The purchase option price is based on the greater of fair
market value or $300.0 million (the minimum option price) and contains an
appreciation sharing arrangement if the fair market value exceeds the minimum
option price.
The
Agreement requires a security deposit of approximately $1.1 million, which
escalates each year in proportion to the annual rent increases.  The
Agreement also requires that HCP and the Company each contribute $1.5 million in
each of the first two years for capital improvements to the
communities.  In the third year, capital expenditures are required at
a rate of $550 per unit and increase by $50 per unit each year through the fifth
year and through the sixth year through end of the lease term, increase by the
greater of the increase in CPI or 3.0%.  The lease contains typical
events of default, including but not limited to, non-payment of rents, default
on any other agreement between the Company and HCP, the Company's filing of a
petition in bankruptcy or the Company's adjudication as bankrupt, and default or
acceleration of any indebtedness of the Company in excess of $1.0
million.
The
closing of this lease transaction is subject to, customary closing conditions,
including but not limited to, a due diligence process, execution of an
operations transfer agreement with the current operator, and approval of the
lease by HCP's current lender.  The Company expects the transaction to
close in the fourth quarter of 2008.
A press
release announcing the Master Lease and Security Agreement is attached hereto as
Exhibit 99.1.
Item
9.01                      Financial
Statement
and
Exhibits.
(d)
Exhibits
Exhibit
No.
Description
99.1
Press Release dated August
      25
, 2008, EMERITUS
      ANNOUNCES AGREEMENT TO LEASE ELEVEN
  COMMUNITIES.
[The rest
of this page is intentionally left blank]
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
August
      25, 2008
EMERITUS
      CORPORATION
By:
/s/
Raymond R.
      Brandstrom
Raymond
      R. Brandstrom
Executive
      Vice President-Finance, Chief  Financial Officer and
      Secretary
INDEX
TO EXHIBITS
Exhibit
No.
Description
99.1
Press Release dated August
      25
, 2008, EMERITUS
      ANNOUNCES AGREEMENT TO LEASE ELEVEN
  COMMUNITIES.