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      8-K Series B Conversion
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        SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
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        D.C. 20549</strong></font></div>
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        8-K</strong></font></div>
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        REPORT</strong></font></div>
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        to Section 13 or 15(d) of</strong></font></div>
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        Securities Exchange Act of 1934</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>
        June 30, 2005</strong></font></div>
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        CORPORATION</strong></font></div>
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        name of registrant as specified in charter)</font></div>
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                  or other jurisdiction of incorporation)</font></div>
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                  File Number)</font></div>
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                  Employer Identification No.)</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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        telephone number, including area code)</font></div>
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        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
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        Written
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        Soliciting material pursuant to Rule&#160;14a-12 under the Exchange Act
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        240.14a-12)</font></div>
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        Pre-commencement communications pursuant to Rule&#160;13e-4(c) under the
        Exchange Act (17 CFR 240.13e-4(c))</font></div>
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      <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>Definitions:</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">Throughout
        this filing certain terms are used repeatedly. In the interest of brevity,
        the
        full reference has been abbreviated to a single name or acronym. The following
        defines these abbreviated terms:</font></div>
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            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Saratoga"
                  refers to a group of related companies, namely: Saratoga Partners
                  IV, LP;
                  Saratoga Management Company LLC, as Agent; and Saratoga Coinvestment
                  IV,
                  LLC.</font></div>
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        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Series
                  B Stock" refers to Series B Convertible Preferred
                  Stock.</font></div>
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        <table cellpadding="0" cellspacing="0" id="list" width="100%">

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              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"REIT"
                  refers to real estate investment
                  trust.</font></div>
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      <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"><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
        1.01 Entry into a Material Definitive Agreement</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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        June&#160;30, 2005, we entered into an agreement with Saratoga that provided
        for
        the conversion of the Series&#160;B Stock held by Saratoga upon the payment
        by
        us of accrued and unpaid cash dividends on the Series&#160;B Stock, in
        the
        amount of approximately $10.8&#160;million. Also on June&#160;30, 2005,
        we
        borrowed $10.8&#160;million from a REIT and used the proceeds to pay the
        accrued
        and unpaid cash dividends on the Series&#160;B Stock; upon such payment,
        Saratoga converted all of the outstanding Series&#160;B Stock to common
        stock in
        accordance with 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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Series&#160;B Stock owned by Saratoga consisted of 36,970 shares with a
        stated
        value of $1,000 per share, of which 30,000 shares were issued in December
        1999
        for a price of $30.0&#160;million and the balance were issued as dividends
        of
        additional Series B Stock. In accordance with the agreement referred to above
        and as described below, the Series&#160;B Stock was converted into 5,365,747
        shares of common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><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">The
        Series B Stock was entitled to receive quarterly dividends in a combination
        of
        cash and additional shares of Series B Stock. The initial rate for the dividend
        was 6% of the stated value of $1,000 per share, of which 2% was payable in
        cash
        and 4% was payable in additional Series B Stock. Starting in January 2004,
        the
        dividend rate moved to 7%, of which 3% was payable in cash and 4% in Series
        B
        Stock. The Series B Stock provided for an &#8220;arrearage rate&#8221; if the cash portion
        of the dividend was not paid, increasing the cash portion of the dividend
        to 7%.
        The arrearage rate became effective in October 2000, thus accruing dividends
        at
        an 11% rate, 7% in cash and 4% in additional shares of Series B Stock. We
        have
        issued the additional Series B Stock dividends on a quarterly basis on the
        first
        day of the month after the end of each quarter. However, the cash portion
        of the
        dividend has not been paid since 2000, which has resulted in an accumulated
        liability of approximately $10.8 million as of March 31, 2005. For accounting
        purposes, we have accrued a liability of $11.1&#160;million, which includes
        approximately $358,000 that represents a straight-line dividend accrual that
        will be reversed upon closing of this stock transaction. No interest has
        accrued
        on the unpaid cash dividends.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><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">The
        Series B Stock was initially convertible into common stock at a rate equal
        to
        the stated value of $1,000 per share divided by a conversion price of $7.22.
        Due
        to certain anti-dilution provisions in the agreement, the conversion price
        on
        June&#160;30, 2005, was $6.89.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><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">We
        had
        the right to redeem the Series B Stock if the closing price of the our common
        stock is at least 175% ($12.06) of the then conversion price for 30 consecutive
        trading days, which occurred in the first quarter of 2005.</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="justify">
        <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">We
          borrowed $10.8 million from a REIT at 10% per annum for a term of three
          years in
          order to pay the unpaid cash dividends of the Series B Preferred Stock.
          Monthly
          note payments of interest-only are due in arrears on the first day of each
          month. Interest is calculated on the actual number of days in the month
          over a
          365-day year. The note is due in full on June 30, 2008. No prepayments
          are
          allowed prior to January 1, 2007, and only upon at least 9 months prior
          written
          notice. The $10.8 million note contains provisions that modify one
          multi-community and four individual community leases with the REIT covering
          12
          properties. The loan requires collateral in the form of a letter of credit
          issued by a bank or a cash deposit of $1.0 million with the REIT.
</font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
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            <hr style="COLOR: black" noshade size="2">
          </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="justify"><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
        2.03 Creation of a Direct Financial Obligation or an Obligation under an
        Off-Balance Sheet Arrangement of a Registrant.</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
        information </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provided
        in Item 1.01 is hereby incorporated by reference into this Item
        2.03.</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
        7.01 Regulation FD Disclosure</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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        July
        5, 2005, we issued a press release announcing the conversion of Series B
        Preferred Stock. The press release is 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="justify"><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">The
        information in Item 7.01 of this Current Report, including but not limited
        to
        Exhibits 99.1, is being furnished and shall not be deemed &#8220;filed&#8221; for the
        purpose of Section 18 of the Securities Exchange Act of 1934, or otherwise
        subject to the liabilities of that Section. The information in Item 7.01
        of this
        Current Report, including but not limited to Exhibits 99.1, shall not be
        incorporated by reference into any registration statement or other document
        filed pursuant to the Securities Act of 1933, except as shall be expressly
        set
        forth by specific reference in such a filing.</font></div><br>
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      <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 Exhibits and Financial Statements.</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>(c)
        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>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 16.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="top" width="65%">
                <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">Press
                  release dated July 5, 2005, announcing the conversion of Series
                  B
                  Preferred Stock.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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      <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
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <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="35%">
                <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">Dated:
                  July 7, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td valign="bottom" width="40%">
                <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="35%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="40%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="35%">&#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="40%" 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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;/s/
                  Raymond R. Brandstrom</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="35%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="40%">
                <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="35%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="40%">
                <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="35%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="40%">
                <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>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4</strong></font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
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      <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: 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: 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="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 16.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="pressreleaseseriesb.htm">99.1</a></font></div>
              </td>
              <td align="left" valign="top" width="65%">
                <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"><a href="pressreleaseseriesb.htm">Press
                  release dated July 5, 2005,
                  announcing the conversion of Series B Preferred
                  Stock.</a></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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[{"type": "8-K", "sequence": "1", "filename": "seriesbconversion.htm", "description": "8-K SERIES B CONVERSION", "secsgml_size_bytes": 41042}]
{"company-data": {"conformed-name": "EMERITUS CORP\\WA\\", "cik": "0001001604", "assigned-sic": "8050", "irs-number": "911605464", "state-of-incorporation": "WA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-14012", "film-number": "05943106"}, "business-address": {"street1": "3131 ELLIOTT AVENUE", "street2": "SUITE 500", "city": "SEATTLE", "state": "WA", "zip": "98121", "phone": "2062982909"}, "mail-address": {"street1": "3131 ELLIOTT AVE STE 500", "city": "SEATTLE", "state": "WA", "zip": "98121"}}
8-K Series B Conversion
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):
June 30, 2005
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))
Definitions:
Throughout
        this filing certain terms are used repeatedly. In the interest of brevity,
        the
        full reference has been abbreviated to a single name or acronym. The following
        defines these abbreviated terms:
1.
"Saratoga"
                  refers to a group of related companies, namely: Saratoga Partners
                  IV, LP;
                  Saratoga Management Company LLC, as Agent; and Saratoga Coinvestment
                  IV,
                  LLC.
2.
"Series
                  B Stock" refers to Series B Convertible Preferred
                  Stock.
3.
"REIT"
                  refers to real estate investment
                  trust.
Item
        1.01 Entry into a Material Definitive Agreement
On
        June 30, 2005, we entered into an agreement with Saratoga that provided
        for
        the conversion of the Series B Stock held by Saratoga upon the payment
        by
        us of accrued and unpaid cash dividends on the Series B Stock, in
        the
        amount of approximately $10.8 million. Also on June 30, 2005,
        we
        borrowed $10.8 million from a REIT and used the proceeds to pay the
        accrued
        and unpaid cash dividends on the Series B Stock; upon such payment,
        Saratoga converted all of the outstanding Series B Stock to common
        stock in
        accordance with the agreement.
The
        Series B Stock owned by Saratoga consisted of 36,970 shares with a
        stated
        value of $1,000 per share, of which 30,000 shares were issued in December
        1999
        for a price of $30.0 million and the balance were issued as dividends
        of
        additional Series B Stock. In accordance with the agreement referred to above
        and as described below, the Series B Stock was converted into 5,365,747
        shares of common stock.
The
        Series B Stock was entitled to receive quarterly dividends in a combination
        of
        cash and additional shares of Series B Stock. The initial rate for the dividend
        was 6% of the stated value of $1,000 per share, of which 2% was payable in
        cash
        and 4% was payable in additional Series B Stock. Starting in January 2004,
        the
        dividend rate moved to 7%, of which 3% was payable in cash and 4% in Series
        B
        Stock. The Series B Stock provided for an "arrearage rate" if the cash portion
        of the dividend was not paid, increasing the cash portion of the dividend
        to 7%.
        The arrearage rate became effective in October 2000, thus accruing dividends
        at
        an 11% rate, 7% in cash and 4% in additional shares of Series B Stock. We
        have
        issued the additional Series B Stock dividends on a quarterly basis on the
        first
        day of the month after the end of each quarter. However, the cash portion
        of the
        dividend has not been paid since 2000, which has resulted in an accumulated
        liability of approximately $10.8 million as of March 31, 2005. For accounting
        purposes, we have accrued a liability of $11.1 million, which includes
        approximately $358,000 that represents a straight-line dividend accrual that
        will be reversed upon closing of this stock transaction. No interest has
        accrued
        on the unpaid cash dividends.
The
        Series B Stock was initially convertible into common stock at a rate equal
        to
        the stated value of $1,000 per share divided by a conversion price of $7.22.
        Due
        to certain anti-dilution provisions in the agreement, the conversion price
        on
        June 30, 2005, was $6.89.
We
        had
        the right to redeem the Series B Stock if the closing price of the our common
        stock is at least 175% ($12.06) of the then conversion price for 30 consecutive
        trading days, which occurred in the first quarter of 2005.
We
          borrowed $10.8 million from a REIT at 10% per annum for a term of three
          years in
          order to pay the unpaid cash dividends of the Series B Preferred Stock.
          Monthly
          note payments of interest-only are due in arrears on the first day of each
          month. Interest is calculated on the actual number of days in the month
          over a
          365-day year. The note is due in full on June 30, 2008. No prepayments
          are
          allowed prior to January 1, 2007, and only upon at least 9 months prior
          written
          notice. The $10.8 million note contains provisions that modify one
          multi-community and four individual community leases with the REIT covering
          12
          properties. The loan requires collateral in the form of a letter of credit
          issued by a bank or a cash deposit of $1.0 million with the REIT.
1
Item
        2.03 Creation of a Direct Financial Obligation or an Obligation under an
        Off-Balance Sheet Arrangement of a Registrant.
The
        information
provided
        in Item 1.01 is hereby incorporated by reference into this Item
        2.03.
Item
        7.01 Regulation FD Disclosure
On
        July
        5, 2005, we issued a press release announcing the conversion of Series B
        Preferred Stock. The press release is furnished as Exhibit 99.1 to this Current
        Report on Form 8-K.
The
        information in Item 7.01 of this Current Report, including but not limited
        to
        Exhibits 99.1, is being furnished and shall not be deemed "filed" for the
        purpose of Section 18 of the Securities Exchange Act of 1934, or otherwise
        subject to the liabilities of that Section. The information in Item 7.01
        of this
        Current Report, including but not limited to Exhibits 99.1, shall not be
        incorporated by reference into any registration statement or other document
        filed pursuant to the Securities Act of 1933, except as shall be expressly
        set
        forth by specific reference in such a filing.
2
Item
        9.01 Exhibits and Financial Statements.
(c)
        Exhibits.
99.1
Press
                  release dated July 5, 2005, announcing the conversion of Series
                  B
                  Preferred Stock.
[The
        rest
        of this page is intentionally left blank]
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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.
Dated:
                  July 7, 2005
EMERITUS
                  CORPORATION
By:
/s/
                  Raymond R. Brandstrom
Raymond
                  R. Brandstrom
Vice
                  President of Finance, Chief Financial Officer
and
                  Secretary
4
INDEX
        TO EXHIBITS
99.1
Press
                  release dated July 5, 2005,
                  announcing the conversion of Series B Preferred
                  Stock.
5