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      8K Summerville Merger Agreement with Emeritus March 2007
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        </div>U.S. SECURITIES AND EXCHANGE COMMISSION</div>
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        8-K</strong></font></div>
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        to Section 13 or 15(d) of</strong></font></div>
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        of
        report (Date of earliest event reported):</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
        March 29, 2007</strong></font></div>
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        CORPORATION</strong></font></div>
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        Elliott Avenue, Suite 500</font></div>
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        Washington 98121</font></div>
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        298-2909</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;1.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
        Into a Material Definitive Agreement.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        March
        29, 2007, Emeritus Corporation (the &#8220;Company&#8221;) entered into an Agreement and
        Plan of Merger ("Merger Agreement") with Boston Project Acquisition Corp.,
        a
        wholly-owned subsidiary of the Company ("Acquisition Sub"), Summerville Senior
        Living, Inc. ("Summerville"), AP Summerville, LLC, AP Summerville&#160;II, LLC,
        Apollo Real Estate Investment Advisors III, L.P. ("AREIF III"), Apollo Real
        Estate Investment Advisors IV, L.P. ("AREIF IV" and together with AREIF III,
        the
        "Apollo Funds"), Daniel R. Baty ("Baty"), and Saratoga Partners&#160;IV, L.P.
        ("Saratoga"). The Apollo Funds are real estate investment funds managed by
        Apollo Real Estate Advisors. Pursuant to the Merger Agreement, the Company
        will
        acquire Summerville, a privately-held operator of assisted living, and
        Alzheimer&#8217;s and dementia related services to seniors, through a merger of
        Acquisition Sub into Summerville. Under the terms of the Merger Agreement,
        a
        total of 8,500,000 shares of common stock of the Company will be issued in
        the
        transaction. A portion of the common stock of the Company to be issued in
        the
        transaction will be issued in satisfaction of approximately $147 million
        in
        outstanding loans from the Apollo Funds, and a portion of the shares to be
        issued in the transaction will be issued pursuant to certain incentive
        compensation arrangements with members of Summerville's management team who
        will
        be joining the combined company in connection with the transaction. The
        remaining shares will be issued to the shareholders of Summerville, including
        the Apollo Funds. The merger is intended to qualify as a tax-free reorganization
        under Section 368(a) of the Internal Revenue Code of 1986, as amended. Because
        the transaction involves the issuance of shares in excess of 20% of the
        Company's outstanding shares, under the rules of the American Stock Exchange,
        the Company's shareholders must approve the issuance of the shares pursuant
        to
        the transaction.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
        the
        terms and subject to the conditions of the Merger Agreement, the Company
        and
        Summerville have made customary representations, warranties and covenants
        in the
        Merger Agreement, including, among others, covenants (i)&#160;to conduct their
        respective businesses in the ordinary and usual course during the interim
        period
        between the execution of the Merger Agreement and the consummation of the
        transactions contemplated by the Merger Agreement (the &#8220;Interim Period&#8221;),
        (ii)&#160;not to engage in certain kinds of actions or transactions during the
        Interim Period, (iii)&#160;to cause a shareholder meeting to be held by the
        Company to consider approval of the issuance of shares of common stock of
        the
        Company in connection with the transaction. The Company has made certain
        additional covenants, including a covenant to take such actions as are
        reasonably required to appoint Granger Cobb and Stuart Koenig, a representative
        of the Apollo Funds, to the Company's board of directors and to appoint Mr.
        Cobb
        as <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
        and </font>co-CEO of the Company after the consummation of the merger
        transaction. Summerville has made certain additional customary covenants,
        including, among others, a covenant not to solicit proposals for alternative
        business combination transactions. The Company has agreed, subject to certain
        limitations, to indemnify the shareholders of Summerville for breaches of
        the
        Company's representations, warranties and other matters and the Apollo Funds
        have agreed, subject to certain limitations, to indemnify the Company for
        breaches of Summerville's representations and warranties and other
        matters.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company's and Summerville's respective obligations to consummate the
        transactions contemplated by the Merger Agreement are subject to customary
        conditions, including, among others: (i)&#160;the requisite vote of the
        Company's shareholders approving the issuance of the shares of common stock
        of
        the Company pursuant to the transaction, (ii)&#160;the accuracy of the
        representations and warranties made by the other party under the Merger
        Agreement, (iii)&#160;compliance of the other party with its covenants, and
        (iv)&#160;no material adverse change to either the Company or Summerville. The
        Merger Agreement contains certain termination rights for both the Company
        and
        Summerville, including mutual consent, failure of the Company to obtain the
        requisite shareholder approval for the issuance of shares of the Company's
        common stock pursuant to the transaction, breaches of representations or
        warranties that could reasonably be expected to result in damages to the
        non-breaching party in excess of a specified amount, or the failure of the
        transaction to be consummated within 270 days of the date of the Merger
        Agreement. In addition, either party has the right to terminate the Merger
        Agreement by paying a termination fee of $25 million.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Baty
        and
        Saratoga have agreed in the Merger Agreement to vote shares of Company common
        stock which they beneficially own in favor of the adoption and approval of
        the
        issuance of shares of common stock of the Company pursuant to the transaction.
        In addition, these shareholders have agreed not to transfer or dispose of
        their
        shares between the date of the Merger Agreement and the consummation of the
        transactions contemplated by the Merger Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the Merger Agreement, the Company, the Apollo Funds and certain
        of their affiliates (the "Apollo Shareholders"), Saratoga and certain of
        its
        affiliates (the "Saratoga Shareholders"), and Baty and certain of his affiliates
        (the "Baty Shareholders"), entered into an Amended and Restated Shareholders
        Agreement dated March 29, 2007 (the "Amended Shareholders Agreement"). The
        Amended Shareholders Agreement, which will become effective upon the
        consummation of the merger transaction, amends and restates the Shareholders
        Agreement dated December 30, 1999 between the Company, Baty, B.F., Limited
        Partnership, and Saratoga. Under the Amended Shareholders Agreement, the
        Apollo
        Shareholders, the Saratoga Shareholders and the Baty Shareholders have agreed
        to
        vote their shares to elect one representative designated by the Apollo
        Shareholders, one representative designated by the Saratoga Shareholders
        and one
        representative designated by the Baty Shareholders so long as each shareholder
        group beneficially owns at least 5% of the Company's outstanding shares or
        one-half of the amount of shares beneficially owned by the shareholder group
        immediately following the closing of the merger transaction. In addition,
        each
        of the shareholders who are parties to the Amended Shareholders Agreement
        have
        agreed that, in the event that the shareholder proposes to transfer (other
        than
        certain permitted transfers, including sales pursuant to a registration
        statement under the Securities Act of 1933 (the "Securities Act"), transfers
        to
        the limited partners or owners of certain shareholders that are entities,
        and
        transfers pursuant to gifts and bequests to certain family members) more
        than
        thirty percent of the shares beneficially owned by the shareholder in a
        transaction or series of related transactions, then the other shareholders
        shall
        have the right to participate in such transfer on a pro rata basis. The Amended
        Shareholders Agreement will terminate with respect to any shareholder who
        is a
        party to the agreement at such time as the shareholder owns less than a certain
        level of ownership. The Amended Shareholders Agreement may also be terminated
        with the unanimous written consent of the shareholders who are party to the
        agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition to the Amended Shareholders Agreement, the Apollo Shareholders,
        the
        Saratoga Shareholders, the Baty Shareholders and Mr. Cobb have entered into
        a
        Registration Rights Agreement dated March 29, 2007 (the "Registration Rights
        Agreement"). The Registration Rights Agreement will become effective upon
        the
        consummation of the Merger. Under the Registration Rights Agreement, the
        Company
        has agreed to file by January 1, 2008, and to have declared effective by
        April
        1, 2008, a shelf registration statement under the Securities Act covering
        shares
        owned by certain Apollo Shareholders and up to 1.8 million shares owned by
        the
        Saratoga Shareholders (subject to reduction for sales by the Saratoga
        Shareholders prior to the effective date of the shelf registration statement).
        The Company is obligated to keep this initial shelf registration statement
        effective until April 1, 2010, until all of the shares subject to this shelf
        registration statement have been sold, or until all of the shares subject
        to
        this shelf registration statement may be sold without restriction under Rule
        144
        under the Securities Act. In addition, each of the Apollo Shareholders, the
        Saratoga Shareholders and the Baty Shareholders have the right, beginning
        18
        months after the closing of the merger transaction, to request that the Company
        file up to two additional registration statements, one of which may be a
        shelf
        registration statement. The Company has also granted the shareholders who
        are
        parties to the Registration Rights Agreement certain customary incidental,
        or
        "piggyback", registration rights to participate in registrations initiated
        by
        the Company for its own account or other security holders. The Company and
        the
        shareholders who are parties to the Registration Rights Agreement have agreed
        to
        certain other related obligations that are customary for agreements of this
        nature.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        the
        Closing, the Company will enter into a five-year employment agreement with
        Mr.
        Cobb pursuant to which Mr. Cobb will be employed as the Company's <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
        and </font>co-CEO. Under this employment agreement, the Company will pay Mr.
        Cobb a base salary of $600,000 per year, Mr. Cobb will be entitled to certain
        bonus compensation (not to exceed 75% of his base salary) based on the Company's
        earnings before interest, taxes, depreciation and amortization, as well as
        other
        benefits. The employment agreement will provide Mr. Cobb certain separation
        benefits in the event that his employment is terminated by the Company without
        cause or by Mr. Cobb for good reason (as defined in the employment agreement).
        </font></div><br>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
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      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.02 Departure of Directors or Certain Officers; Election of Directors;
        Appointment of Certain Officers; Compensatory Arrangements of Certain
        Officers</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          April
          2, 2007, the Company's Senior Vice President, Operations, Gary Becker
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">submitted
          his resignation to be effective May 1, 2007.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          April
          2, 2007, the Company&#8217;s Vice President, Operations - Eastern Division, submitted
          her resignation to be effective May 1, 2007. </font></div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
        Events</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company issued a press release on March 29, 2007, announcing the entry into
        the
        Merger Agreement. A copy of the press release is being furnished as Exhibit
        99.1
        to this Current Report on Form 8-K.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the proposed transaction, Emeritus intends to file a proxy
        statement and other materials with the Securities and Exchange Commission
        (the
&#8220;SEC&#8221;). Investors are urged to read the proxy statement and other materials when
        they are available because they will contain important information. Investors
        will be able to obtain free copies of the proxy statement when it becomes
        available, as well as other filings containing information about Emeritus
        and
        Summerville at the SEC&#8217;s Internet site (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>http://www.sec.gov</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">).
        These
        documents also may be accessed and downloaded free of charge from the investor
        relations section of Emeritus' Internet site (www.emeritus.com) or obtained
        free
        of charge by directing a request to Emeritus Corporation, 3131 Elliott Avenue,
        Suite 500, Seattle, Washington 98121 Attention: Corporate Secretary by mail,
        or
        by calling (206)&#160;289-2909. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Emeritus
        and its directors, executive officers, other members of management and employees
        may be deemed to be participants in the solicitation of proxies from
        shareholders in respect of the proposed transaction. Information regarding
        Emeritus' directors and executive officers is available in Emeritus' proxy
        statement for its 2006 annual meeting of shareholders, dated April 28, 2006.
        Additional information regarding the interests of such potential participants
        will be included in the proxy statement and the other relevant documents
        filed
        with the SEC when they become available.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
        Statement </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>and</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
        Exhibits.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit
        No.</u></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Description</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
        and Plan of Merger dated as of March 29, 2007 by and among Emeritus</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        Corporation, Boston Project Acquisition Corp., Summerville Senior Living,
        Inc.
        AP Summerville, LLC, AP Summerville&#160;II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        and
        Saratoga Partners&#160;IV, L.P.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
        and Restated Shareholders Agreement dated as of March 29, 2007 by and
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">among
        Emeritus Corporation, AP Summerville, LLC, AP Summerville&#160;II, LLC, Apollo
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Real
        Estate Investment Fund III, L.P., Apollo Real Estate Investment Fund IV,
        L.P.,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Daniel
        R.
        Baty, Catalina General Partnership, L.P., Columbia Select, L.P., B.F., Limited
        Partnership, Saratoga Partners&#160;IV, L.P., Saratoga Coinvestment Company, LLC
        and Saratoga Management Company, LLC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
        Rights Agreement dated as of March 29, 2007 by and among Emeritus Corporation,
        AP Summerville, LLC, AP Summerville&#160;II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        Catalina General Partnership, L.P., Columbia Select, L.P., B.F., Limited
        Partnership, Saratoga Partners&#160;IV, L.P., Saratoga Coinvestment Company,
        LLC, Saratoga Management Company, LLC and Granger Cobb.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
        Release dated March 29, 2007, EMERITUS AND SUMMERVILLE SENIOR LIVING ANNOUNCE
        MERGER.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[The
        rest
        of this page is intentionally left blank]</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div><br>
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
          <div style="WIDTH: 100%" align="left">
          </div>
        </div>
      </div><br><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="38%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                  2, 2007</font></div>
              </td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EMERITUS
                  CORPORATION</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="right" valign="bottom" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; 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 thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Raymond
                  R. Brandstrom</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vice
                  President of Finance, Chief Financial Officer</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  Secretary</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
        TO EXHIBITS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit
        No.</u></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Description</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a href="ex21mergeragreementsummervil.htm"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
        and Plan of Merger dated as of March 29, 2007 by and among</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Emeritus
        Corporation, Boston Project Acquisition Corp., Summerville Senior Living,
        Inc.
        AP Summerville, LLC, AP Summerville&#160;II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        and
        Saratoga Partners&#160;IV, L.P.</font></a></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a href="ex101shareholderagreement.htm"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
        and Restated Shareholders Agreement dated as of March 29, 2007 by and among
        Emeritus Corporation, AP Summerville, LLC, AP Summerville&#160;II, LLC, Apollo
        Real Estate Investment Fund III, L.P., Apollo Real Estate Investment Fund
        IV,
        L.P., Daniel R. Baty, Catalina General Partnership, L.P., Columbia Select,
        L.P.,
        B.F., Limited Partnership, Saratoga Partners&#160;IV, L.P., Saratoga
        Coinvestment Company, LLC and Saratoga Management Company, LLC.</font></a></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a href="ex102registrationrights.htm"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
        Rights Agreement dated as of March 29, 2007 by and among Emeritus Corporation,
        AP Summerville, LLC, AP Summerville&#160;II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        Catalina General Partnership, L.P., Columbia Select, L.P., B.F., Limited
        Partnership, Saratoga Partners&#160;IV, L.P., Saratoga Coinvestment Company,
        LLC, Saratoga Management Company, LLC and Granger Cobb.</font></a></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a href="ex991pressreleasesummrmerger.htm"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
        Release dated March 29, 2007, EMERITUS AND SUMMERVILLE SENIOR LIVING ANNOUNCE
        MERGER.</font></a></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    </div>
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8K Summerville Merger Agreement with Emeritus March 2007
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):
March 29, 2007
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)
þ
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
        March
        29, 2007, Emeritus Corporation (the "Company") entered into an Agreement and
        Plan of Merger ("Merger Agreement") with Boston Project Acquisition Corp.,
        a
        wholly-owned subsidiary of the Company ("Acquisition Sub"), Summerville Senior
        Living, Inc. ("Summerville"), AP Summerville, LLC, AP Summerville II, LLC,
        Apollo Real Estate Investment Advisors III, L.P. ("AREIF III"), Apollo Real
        Estate Investment Advisors IV, L.P. ("AREIF IV" and together with AREIF III,
        the
        "Apollo Funds"), Daniel R. Baty ("Baty"), and Saratoga Partners IV, L.P.
        ("Saratoga"). The Apollo Funds are real estate investment funds managed by
        Apollo Real Estate Advisors. Pursuant to the Merger Agreement, the Company
        will
        acquire Summerville, a privately-held operator of assisted living, and
        Alzheimer's and dementia related services to seniors, through a merger of
        Acquisition Sub into Summerville. Under the terms of the Merger Agreement,
        a
        total of 8,500,000 shares of common stock of the Company will be issued in
        the
        transaction. A portion of the common stock of the Company to be issued in
        the
        transaction will be issued in satisfaction of approximately $147 million
        in
        outstanding loans from the Apollo Funds, and a portion of the shares to be
        issued in the transaction will be issued pursuant to certain incentive
        compensation arrangements with members of Summerville's management team who
        will
        be joining the combined company in connection with the transaction. The
        remaining shares will be issued to the shareholders of Summerville, including
        the Apollo Funds. The merger is intended to qualify as a tax-free reorganization
        under Section 368(a) of the Internal Revenue Code of 1986, as amended. Because
        the transaction involves the issuance of shares in excess of 20% of the
        Company's outstanding shares, under the rules of the American Stock Exchange,
        the Company's shareholders must approve the issuance of the shares pursuant
        to
        the transaction.
Upon
        the
        terms and subject to the conditions of the Merger Agreement, the Company
        and
        Summerville have made customary representations, warranties and covenants
        in the
        Merger Agreement, including, among others, covenants (i) to conduct their
        respective businesses in the ordinary and usual course during the interim
        period
        between the execution of the Merger Agreement and the consummation of the
        transactions contemplated by the Merger Agreement (the "Interim Period"),
        (ii) not to engage in certain kinds of actions or transactions during the
        Interim Period, (iii) to cause a shareholder meeting to be held by the
        Company to consider approval of the issuance of shares of common stock of
        the
        Company in connection with the transaction. The Company has made certain
        additional covenants, including a covenant to take such actions as are
        reasonably required to appoint Granger Cobb and Stuart Koenig, a representative
        of the Apollo Funds, to the Company's board of directors and to appoint Mr.
        Cobb
        as
President
        and
co-CEO of the Company after the consummation of the merger
        transaction. Summerville has made certain additional customary covenants,
        including, among others, a covenant not to solicit proposals for alternative
        business combination transactions. The Company has agreed, subject to certain
        limitations, to indemnify the shareholders of Summerville for breaches of
        the
        Company's representations, warranties and other matters and the Apollo Funds
        have agreed, subject to certain limitations, to indemnify the Company for
        breaches of Summerville's representations and warranties and other
        matters.
The
        Company's and Summerville's respective obligations to consummate the
        transactions contemplated by the Merger Agreement are subject to customary
        conditions, including, among others: (i) the requisite vote of the
        Company's shareholders approving the issuance of the shares of common stock
        of
        the Company pursuant to the transaction, (ii) the accuracy of the
        representations and warranties made by the other party under the Merger
        Agreement, (iii) compliance of the other party with its covenants, and
        (iv) no material adverse change to either the Company or Summerville. The
        Merger Agreement contains certain termination rights for both the Company
        and
        Summerville, including mutual consent, failure of the Company to obtain the
        requisite shareholder approval for the issuance of shares of the Company's
        common stock pursuant to the transaction, breaches of representations or
        warranties that could reasonably be expected to result in damages to the
        non-breaching party in excess of a specified amount, or the failure of the
        transaction to be consummated within 270 days of the date of the Merger
        Agreement. In addition, either party has the right to terminate the Merger
        Agreement by paying a termination fee of $25 million.
Baty
        and
        Saratoga have agreed in the Merger Agreement to vote shares of Company common
        stock which they beneficially own in favor of the adoption and approval of
        the
        issuance of shares of common stock of the Company pursuant to the transaction.
        In addition, these shareholders have agreed not to transfer or dispose of
        their
        shares between the date of the Merger Agreement and the consummation of the
        transactions contemplated by the Merger Agreement.
In
        connection with the Merger Agreement, the Company, the Apollo Funds and certain
        of their affiliates (the "Apollo Shareholders"), Saratoga and certain of
        its
        affiliates (the "Saratoga Shareholders"), and Baty and certain of his affiliates
        (the "Baty Shareholders"), entered into an Amended and Restated Shareholders
        Agreement dated March 29, 2007 (the "Amended Shareholders Agreement"). The
        Amended Shareholders Agreement, which will become effective upon the
        consummation of the merger transaction, amends and restates the Shareholders
        Agreement dated December 30, 1999 between the Company, Baty, B.F., Limited
        Partnership, and Saratoga. Under the Amended Shareholders Agreement, the
        Apollo
        Shareholders, the Saratoga Shareholders and the Baty Shareholders have agreed
        to
        vote their shares to elect one representative designated by the Apollo
        Shareholders, one representative designated by the Saratoga Shareholders
        and one
        representative designated by the Baty Shareholders so long as each shareholder
        group beneficially owns at least 5% of the Company's outstanding shares or
        one-half of the amount of shares beneficially owned by the shareholder group
        immediately following the closing of the merger transaction. In addition,
        each
        of the shareholders who are parties to the Amended Shareholders Agreement
        have
        agreed that, in the event that the shareholder proposes to transfer (other
        than
        certain permitted transfers, including sales pursuant to a registration
        statement under the Securities Act of 1933 (the "Securities Act"), transfers
        to
        the limited partners or owners of certain shareholders that are entities,
        and
        transfers pursuant to gifts and bequests to certain family members) more
        than
        thirty percent of the shares beneficially owned by the shareholder in a
        transaction or series of related transactions, then the other shareholders
        shall
        have the right to participate in such transfer on a pro rata basis. The Amended
        Shareholders Agreement will terminate with respect to any shareholder who
        is a
        party to the agreement at such time as the shareholder owns less than a certain
        level of ownership. The Amended Shareholders Agreement may also be terminated
        with the unanimous written consent of the shareholders who are party to the
        agreement.
In
        addition to the Amended Shareholders Agreement, the Apollo Shareholders,
        the
        Saratoga Shareholders, the Baty Shareholders and Mr. Cobb have entered into
        a
        Registration Rights Agreement dated March 29, 2007 (the "Registration Rights
        Agreement"). The Registration Rights Agreement will become effective upon
        the
        consummation of the Merger. Under the Registration Rights Agreement, the
        Company
        has agreed to file by January 1, 2008, and to have declared effective by
        April
        1, 2008, a shelf registration statement under the Securities Act covering
        shares
        owned by certain Apollo Shareholders and up to 1.8 million shares owned by
        the
        Saratoga Shareholders (subject to reduction for sales by the Saratoga
        Shareholders prior to the effective date of the shelf registration statement).
        The Company is obligated to keep this initial shelf registration statement
        effective until April 1, 2010, until all of the shares subject to this shelf
        registration statement have been sold, or until all of the shares subject
        to
        this shelf registration statement may be sold without restriction under Rule
        144
        under the Securities Act. In addition, each of the Apollo Shareholders, the
        Saratoga Shareholders and the Baty Shareholders have the right, beginning
        18
        months after the closing of the merger transaction, to request that the Company
        file up to two additional registration statements, one of which may be a
        shelf
        registration statement. The Company has also granted the shareholders who
        are
        parties to the Registration Rights Agreement certain customary incidental,
        or
        "piggyback", registration rights to participate in registrations initiated
        by
        the Company for its own account or other security holders. The Company and
        the
        shareholders who are parties to the Registration Rights Agreement have agreed
        to
        certain other related obligations that are customary for agreements of this
        nature.
At
        the
        Closing, the Company will enter into a five-year employment agreement with
        Mr.
        Cobb pursuant to which Mr. Cobb will be employed as the Company's
President
        and
co-CEO. Under this employment agreement, the Company will pay Mr.
        Cobb a base salary of $600,000 per year, Mr. Cobb will be entitled to certain
        bonus compensation (not to exceed 75% of his base salary) based on the Company's
        earnings before interest, taxes, depreciation and amortization, as well as
        other
        benefits. The employment agreement will provide Mr. Cobb certain separation
        benefits in the event that his employment is terminated by the Company without
        cause or by Mr. Cobb for good reason (as defined in the employment agreement).
Item
        5.02 Departure of Directors or Certain Officers; Election of Directors;
        Appointment of Certain Officers; Compensatory Arrangements of Certain
        Officers
On
          April
          2, 2007, the Company's Senior Vice President, Operations, Gary Becker
submitted
          his resignation to be effective May 1, 2007.
On
          April
          2, 2007, the Company's Vice President, Operations - Eastern Division, submitted
          her resignation to be effective May 1, 2007.
Item
        8.01
Other
        Events
The
        Company issued a press release on March 29, 2007, announcing the entry into
        the
        Merger Agreement. A copy of the press release is being furnished as Exhibit
        99.1
        to this Current Report on Form 8-K.
In
        connection with the proposed transaction, Emeritus intends to file a proxy
        statement and other materials with the Securities and Exchange Commission
        (the
"SEC"). Investors are urged to read the proxy statement and other materials when
        they are available because they will contain important information. Investors
        will be able to obtain free copies of the proxy statement when it becomes
        available, as well as other filings containing information about Emeritus
        and
        Summerville at the SEC's Internet site (
http://www.sec.gov
).
        These
        documents also may be accessed and downloaded free of charge from the investor
        relations section of Emeritus' Internet site (www.emeritus.com) or obtained
        free
        of charge by directing a request to Emeritus Corporation, 3131 Elliott Avenue,
        Suite 500, Seattle, Washington 98121 Attention: Corporate Secretary by mail,
        or
        by calling (206) 289-2909.
Emeritus
        and its directors, executive officers, other members of management and employees
        may be deemed to be participants in the solicitation of proxies from
        shareholders in respect of the proposed transaction. Information regarding
        Emeritus' directors and executive officers is available in Emeritus' proxy
        statement for its 2006 annual meeting of shareholders, dated April 28, 2006.
        Additional information regarding the interests of such potential participants
        will be included in the proxy statement and the other relevant documents
        filed
        with the SEC when they become available.
Item
        9.01
Financial
        Statement
and
Exhibits.
(d)
Exhibits
Exhibit
        No.
Description
2.1
Agreement
        and Plan of Merger dated as of March 29, 2007 by and among Emeritus
Corporation, Boston Project Acquisition Corp., Summerville Senior Living,
        Inc.
        AP Summerville, LLC, AP Summerville II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        and
        Saratoga Partners IV, L.P.
10.1
Amended
        and Restated Shareholders Agreement dated as of March 29, 2007 by and
among
        Emeritus Corporation, AP Summerville, LLC, AP Summerville II, LLC, Apollo
Real
        Estate Investment Fund III, L.P., Apollo Real Estate Investment Fund IV,
        L.P.,
Daniel
        R.
        Baty, Catalina General Partnership, L.P., Columbia Select, L.P., B.F., Limited
        Partnership, Saratoga Partners IV, L.P., Saratoga Coinvestment Company, LLC
        and Saratoga Management Company, LLC.
10.2
Registration
        Rights Agreement dated as of March 29, 2007 by and among Emeritus Corporation,
        AP Summerville, LLC, AP Summerville II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        Catalina General Partnership, L.P., Columbia Select, L.P., B.F., Limited
        Partnership, Saratoga Partners IV, L.P., Saratoga Coinvestment Company,
        LLC, Saratoga Management Company, LLC and Granger Cobb.
99.1
Press
        Release dated March 29, 2007, EMERITUS AND SUMMERVILLE SENIOR LIVING ANNOUNCE
        MERGER.
[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.
April
                  2, 2007
EMERITUS
                  CORPORATION
By:
Raymond
                  R. Brandstrom
Vice
                  President of Finance, Chief Financial Officer
and
                  Secretary
INDEX
        TO EXHIBITS
Exhibit
        No.
Description
2.1
Agreement
        and Plan of Merger dated as of March 29, 2007 by and among
Emeritus
        Corporation, Boston Project Acquisition Corp., Summerville Senior Living,
        Inc.
        AP Summerville, LLC, AP Summerville II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        and
        Saratoga Partners IV, L.P.
10.1
Amended
        and Restated Shareholders Agreement dated as of March 29, 2007 by and among
        Emeritus Corporation, AP Summerville, LLC, AP Summerville II, LLC, Apollo
        Real Estate Investment Fund III, L.P., Apollo Real Estate Investment Fund
        IV,
        L.P., Daniel R. Baty, Catalina General Partnership, L.P., Columbia Select,
        L.P.,
        B.F., Limited Partnership, Saratoga Partners IV, L.P., Saratoga
        Coinvestment Company, LLC and Saratoga Management Company, LLC.
10.2
Registration
        Rights Agreement dated as of March 29, 2007 by and among Emeritus Corporation,
        AP Summerville, LLC, AP Summerville II, LLC, Apollo Real Estate Investment
        Fund III, L.P., Apollo Real Estate Investment Fund IV, L.P., Daniel R. Baty,
        Catalina General Partnership, L.P., Columbia Select, L.P., B.F., Limited
        Partnership, Saratoga Partners IV, L.P., Saratoga Coinvestment Company,
        LLC, Saratoga Management Company, LLC and Granger Cobb.
99.1
Press
        Release dated March 29, 2007, EMERITUS AND SUMMERVILLE SENIOR LIVING ANNOUNCE
        MERGER.