|  EMERITUS      CORPORATION |
|---------------------------------|
| 2006      EQUITY INCENTIVE PLAN |
|                            |

| STOCK      OPTION GRANT NOTICE |
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|  Emeritus      Corporation (the "Company") hereby grants to you an Option (the "Option")      to purchase shares of the Company's Common Stock under the Company's 2006      Equity Incentive Plan (the "Plan").  The Option is subject to      all the terms and conditions set forth in this Stock Option Grant Notice      (this "Grant Notice") and in the Stock Option Agreement and the Plan,      which are attached to and incorporated into this Grant Notice in their      entirety. |
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| Participant:                              | ________________                                                                                                                    |
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| Grant    Date:                            | ________________                                                                                                                    |
| Vesting Commencement      Date:           | ________________                                                                                                                    |
| Number of Shares Subject to      Option:  | ________________                                                                                                                    |
| Exercise Price (per      Share):          | ________________                                                                                                                    |
| Option Expiration      Date:              | ________________      (subject to earlier termination in accordance with the terms of the Plan      and the Stock Option Agreement) |
| Type of      Option:                      | o  Incentive      Stock Option*o Nonqualified      Stock Option                                                           |
| Vesting and Exercisability      Schedule: | _________________                                                                                                              |

| Additional      Terms/Acknowledgement:  You acknowledge receipt of, and      understand and agree to, this Grant Notice, the Stock Option Agreement and      the Plan.  You further acknowledge that, as of the Grant Date,      such documents set forth the entire understanding between you and the      Company regarding the Option and supersede all prior oral and written      agreements on the subject. |
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| EMERITUS      CORPORATION By:      __________________________  | PARTICIPANT  Signature                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|                                                                     | Date:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Attachments:1.  Stock      Option Agreement          | Address:                                                              Taxpayer      ID      (SSN):                                                             |

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| EMERITUS                        |
|---------------------------------|
| 2006      EQUITY INCENTIVE PLAN |

|  STOCK      OPTION AGREEMENT |
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|  Pursuant      to your Stock Option Grant Notice (the "Grant Notice") and this Stock      Option Agreement (this "Agreement"), Emeritus Corporation has granted you      an Option under its 2006 Equity      Incentive Plan (the "Plan") to purchase the number of shares of the      Company's Common Stock indicated in your Grant Notice (the "Shares") at      the exercise price indicated in your Grant Notice.  Capitalized      terms not defined in this Agreement but defined in the Plan have the same      definitions as in the Plan.  |
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| The      details of the Option are as follows:                                                                                                                                                                                                                                                                                                                                          |
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| 1.           Vesting and      Exercisability.  Subject to the limitations contained      herein, the Option will vest and become exercisable as provided in your      Grant Notice, provided that vesting will cease upon your Termination of      Service and the unvested portion of the Option willterminate.  |

| 2.           Securities Law      Compliance.  Notwithstanding any other provision of this      Agreement, you may not exercise the Option unless the Shares issuable upon      exercise are registered under the Securities Act or, if such Shares are      not then so registered, the Company has determined that such exercise and      issuance would be exempt from the registration requirements of the      Securities Act.  The exercise of the Option must also comply      with other applicable laws and regulations governing the Option, and you      may not exercise the Option if the Company determines that such exercise      would not be in material compliance with such laws and      regulations. |
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|  3.           Incentive Stock Option      Qualification.  If so designated      in your Grant Notice, all or a portion of the Option is intended to      qualify as an Incentive Stock Option under federal income tax law, but the      Company does not represent or guarantee that the Option qualifies as      such.                                                                                                                                                                                                                                                                                                                                                  |
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| If      the Option has been designated as an Incentive Stock Option and the      aggregate Fair Market Value (determined as of the Grant Date) of the      shares of Common Stock subject to the portions of the Option and all other      Incentive Stock Options you hold that first become exercisable during any      calendar year exceeds $100,000, any excess portion will be treated as a      Nonqualified Stock Option, unless the Internal Revenue Service changes the      rules and regulations governing the $100,000 limit for Incentive Stock      Options.  A portion of the Option may be treated as a      Nonqualified Stock Option if certain events cause exercisability of the      Option to accelerate. |

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| 4.           Notice of Disqualifying      Disposition.  To the extent the Option has been      designated as an Incentive Stock Option, to obtain certain tax benefits      afforded to Incentive Stock Options, you must hold the Shares issued upon      the exercise of the Option for two years after the Grant Date and one year      after the date of exercise.  You may be subject to the      alternative minimum tax at the time of exercise.  You should      obtain tax advice when exercising the Option and prior to the disposition      of the Shares.  By accepting the Option, you agree to promptly      notify the Company if you dispose of any of the Shares within one year      from the date you exercise all or part of the Option or within two years      from the Grant Date. |
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|  5.           Method of      Exercise.  You may exercise the Option by giving written      notice to the Company, in form and substance satisfactory to the Company,      which will state your election to exercise the Option and the number of      Shares for which you are exercising the Option.  The written      notice must be accompanied by full payment of the exercise price for the      number of Shares you are purchasing.  You may make this payment      in any combination of the following:  (a) by cash;      (b) by check acceptable to the Company; (c) if permitted by the      Plan Administrator, by using shares of Common Stock you already own;      (d) if the Common Stock is registered under the Exchange Act and to      the extent permitted by law, by instructing a broker to deliver to the      Company the total payment required, all in accordance with the regulations      of the Federal Reserve Board; or (e) by any other method permitted by      the Plan Administrator. |
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|  6.           Treatment Upon Termination of      Employment or Service Relationship. The unvested portion of the      Option will terminate automatically and without further notice immediately      upon termination of your employment or service relationship with the      Company or a Related Company for any reason ("Termination of      Service").  You may exercise the vested portion of the Option as      follows: |
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|  (a)           General      Rule.  You must exercise the vested portion of the Option      on or before the earlier of (i) three months after your Termination      of Service and (ii) the Option Expiration Date;                                                                                                                                                                                                                                                                                                                                                                                                       |
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| (b)           Retirement, Disability or      Death.  If your employment or service relationship      terminates due to your Retirement, Disability or death, the vested portion      of the Option must be exercised on or before the earlier of (i) one      year after your Termination of Service and (ii) the Option Expiration      Date.  If you die after your Termination of Service but while      the Option is still exercisable, the vested portion of the Option may be      exercised until the earlier of (x) one year after the date of death      and (y) the Option Expiration Date; and |
| (c)           Cause.  The      vested portion of the Option will automatically expire at the time the      Company first notifies you of your Termination of Service for Cause,      unless the Plan Administrator determines otherwise.  If your      employment or service relationship is suspended pending an investigation      of whether you will be terminated for Cause, all your rights under the      Option likewise will be suspended during the period of      investigation.  If any facts that would constitute termination      for Cause are discovered after your Termination  of                 |

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|  Service,      any Option you then hold may be immediately terminated by the Plan      Administrator. |
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|  The      Option must be exercised within three months after termination of      employment for reasons other than death or Disability and one year after      termination of employment due to Disability to qualify for the beneficial      tax treatment afforded Incentive StockOptions. |
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|  It      is your responsibility to be aware of the date the Option      terminates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| 7.           Limited      Transferability.  During your lifetime only you can      exercise the Option.  The Option is not transferable except by      will or by the applicable laws of descent and distribution.  The      Plan provides for exercise of the Option by a beneficiary designated on a      Company-approved form or the personal representative of your      estate.  Notwithstanding the foregoing, and to the extent      permitted by Section 422 of the Internal Revenue Code of 1986, the Plan      Administrator, in its sole discretion, may permit you to otherwise assign      or transfer the Option, subject to such terms and conditions specified by      the Plan Administrator. |
| 8.           Withholding Taxes. As a condition to      the exercise of any portion of the Option, you must make such arrangements      as the Company may require for the satisfaction of any federal, state,      local or foreign withholding tax obligations that may arise in connection      with such exercise.                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 9.           Option Not an Employment or      Service Contract.  Nothing in the Plan or any Award      granted under the Plan will be deemed to constitute an employment contract      or confer or be deemed to confer any right for you to continue in the      employ of, or to continue any other relationship with, the Company or any      Related Company or limit in any way the right of the Company or any      Related Company to terminate your employment or other relationship at any      time, with or without Cause.                                                                                                                                                                                                         |
| 10.           No Right to      Damages.  You will have no right to bring a claim or to      receive damages if you are required to exercise the vested portion of the      Option within three months (or one year in the case of Retirement,      Disability or death) of your Termination of Service or if any portion of      the Option is cancelled or expires unexercised.  The loss of      existing or potential profit in the Option will not constitute an element      of damages in the event of your Termination of Service for any reason,      even if the termination is in violation of an obligation of the Company or      a Related Company to you.                                                             |
| 11.           Binding      Effect.  This Agreement will inure to the benefit of the      successors and assigns of the Company and be binding upon you and your      heirs, executors, administrators, successors and  assigns.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 12.           Section 409A      Compliance.  Notwithstanding anything in this Agreement      or the Plan to the contrary, the Company may adopt such amendments to this      Agreement and adopt other policies and procedures (including amendments,      policies and procedures with retroactive effect) or take other actions      that the Company determines are necessaryor                                                                                                                                                                                                                                                                                                                                                            |

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| appropriate      to exempt the Option from Section 409A of the Code or to comply with      Section 409A of the Code. |
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|  13.  Employee Data      Privacy.  By entering into this Agreement and accepting      the Option, you (a) explicitly and unambiguously consent to the      collection, use and transfer, in electronic or other form, of any of your      personal data that is necessary to facilitate the implementation,      administration and management of the Option and the Plan; (b) understand      that the Company and your employer may, for the purpose of implementing,      administering and managing the Plan, hold certain personal information      about you, including, but not limited to, your name, home address and      telephone number, date of birth, social insurance number or other      identification number, salary, nationality, job title and details of all      awards or entitlement to the Common Stock granted to you under the Plan or      otherwise ("Data"); (c) understand that Data may be transferred to any      third parties assisting in the implementation, administration and      management of the Plan, including any broker with whom the Shares issued      upon vesting of the Option may be deposited, and that these recipients may      be located in your country or elsewhere, and that the recipient's country      may have different data privacy laws and protections than your country;      (d) waive any data privacy rights you may have with respect to the Data;      and (e) authorize the Company, its Related Companies and its agents to      store and transmit such information in electronic form. |
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