Document:

EX 4.7 Emeritus Corporation Form of Convertible Debt Securities S-3

     

    EXHIBIT
      4.7

     

    [If
      the Holder of this Security is a depository, such as The Depository Trust
      Company ("DTC") or a nominee of DTC, this Security is a Global Security and
      insert the following two legends:
      

     

    THIS
      SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
      REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY (AS DEFINED IN THE
      INDENTURE) OR A NOMINEE THEREOF. THIS GLOBAL SECURITY IS EXCHANGEABLE FOR
      SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR
      ITS
      NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS
      AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE
      FORM,
      THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY
      TO A NOMINEE OF THE DEPOSITORY, OR BY A NOMINEE OF THE DEPOSITORY TO THE
      DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY, OR BY THE DEPOSITORY OR ANY
      SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR
      DEPOSITORY. 

     

    UNLESS
      THE SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),] TO THE COMPANY (AS DEFINED
      BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
      ANY
      SECURITY ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO. OR IN] SUCH [OTHER]
      NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITORY] [DTC]
      (AND
      ANY PAYMENT IS MADE TO [CEDE & CO. OR TO] SUCH [OTHER] ENTITY AS IS
      REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITORY] [DTC]), ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF[, CEDE & CO.,] HAS AN
      INTEREST HEREIN.] 

     

    [If
      this security is an Original Issue Discount Security, insert
      -- FOR
      PURPOSES OF
      SECTION 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE, THE AMOUNT
      OF
      ORIGINAL ISSUE DISCOUNT ON THIS SECURITY IS ___% OF ITS PRINCIPAL AMOUNT, THE
      ISSUE DATE IS __________, AND THE YIELD TO MATURITY IS ___%. [[THE METHOD USED
      TO DETERMINE THE AMOUNT OF ORIGINAL ISSUE DISCOUNT APPLICABLE TO THE SHORT
      ACCRUAL PERIOD OF __________ TO __________, IS ___% OF THE PRINCIPAL AMOUNT
      OF
      THIS SECURITY.]]

     

    NO.
      ___ $__________

     

    EMERITUS
      CORPORATION

     

    [Designation
      of Series]

     

    EMERITUS
      Corporation, a Washington corporation (hereinafter called the "Company", which
      term includes any successor corporation under the Indenture referred to below),
      for value received, hereby promises to pay to ______________, or registered
      assigns, the principal sum of 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ______________
      Dollars ($________) on ______________,____ [If
      the
      Security is to bear interest prior to Maturity, insert --
      , and
      to pay interest thereon from ______ or from the most recent Interest Payment
      Date to which interest has been paid or duly provided for, semiannually on
      _________ and __________ in each year, commencing _____________, [If
      the
      Security is to bear interest at a fixed rate, insert --
      at the
      rate of ___% per annum] [If
      the
      Security is to bear interest at an adjustable rate, insert --
      at a
      rate per annum computed or determined in accordance with the provisions below],
      until the principal hereof is paid or made available for payment [If
      applicable, insert --,
      and
      (to the extent that the payment of such interest shall be legally enforceable)
      at the rate of ___% per annum on any overdue principal and premium and on any
      overdue installment of interest from the dates such amounts are due until they
      are paid or made available for payment and such interest shall be payable on
      demand].
      [If
      applicable, insert --
      Interest
      on this Security shall be computed on the basis of a 360-day year of twelve
      30-day months. If any Interest Payment Date or the maturity date falls on a
      day
      that is not a Business Day, the required payment shall be made on the next
      Business Day as if it were made on the date such payment was due and no interest
      shall accrue on the amount so payable for the period from and after such
      Interest Payment Date or the maturity date, as the case may be, to such next
      Business Day.] The interest so payable and punctually paid or duly provided
      for
      on any Interest Payment Date will, as provided in such Indenture, be paid to
      the
      Person in whose name this Security (or one or more Predecessor Securities)
      is
      registered at the close of business on the regular record date for such
      interest, which shall be ______________ or ______________ (whether or not a
      Business Day), as the case may be, next preceding such Interest Payment Date.
      Any such interest which is payable but not punctually paid or duly provided
      for
      on any Interest Payment Date shall forthwith cease to be payable to the
      registered Holder hereof on the relevant regular record date by virtue or having
      been such holder, and may be paid to the Person in whose name this Security
      (or
      one or more Predecessor Securities) is registered at the close of business
      on a
      subsequent special record date (which shall be at least 10 days before the
      payment date) for the payment of such defaulted interest to be fixed by the
      Company, notice whereof shall be given to the Holders of Securities of this
      series not less than 10 days prior to such Special Record Date, or may be paid
      at any time in any other lawful manner not inconsistent with the requirements
      of
      any securities exchange on which the Securities may be listed, and upon such
      notice as may be required by such exchange, all as more fully provided in such
      Indenture.

     

    [If
      the
      Security is not to bear interest prior to Maturity, insert -
      - The
      principal of this Security shall not bear interest except in the case of a
      default in payment of principal upon acceleration or redemption or at the Stated
      Maturity and in such case the overdue principal of this Security shall bear
      interest at the rate of ___% per annum (to the extent that the payment of such
      interest shall be legally enforceable), which shall accrue from the date of
      such
      default in payment to the date payment of such principal has been made or duly
      provided for. Interest on any overdue principal shall be payable on demand.
      Any
      such interest on any overdue principal that is not so paid on demand shall
      bear
      interest at the rate of ___% per annum (to the extent that the payment of such
      interest shall be legally enforceable), which shall accrue from the date of
      such
      demand for payment to the date payment of such interest has been made or duly
      provided for, and such interest shall also be payable on demand.]

     

    Payment
      of the principal of and [If
      applicable, insert
      - - any
      such] interest on this Security will be made at the office or agency of the
      Company maintained for that purpose in The Borough of Manhattan, The City of
      New
      York, in such coin or currency of the United States of America as at the time
      of
      payment is legal tender for payment of public and private debts [If
      applicable, insert
      -- ;
      provided, however, that, at the option of the Company, interest may be paid
      by
      check mailed to the address of the Person entitled thereto as such address
      shall
      appear in the Security Register;] [If
      

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    applicable,
      insert
      --
      provided, further, that payment to [DTC or] any [successor] depository may
      be
      made by wire transfer to the account designated by [DTC or] such [successor]
      depository in writing]. 

     

    This
      Security is one of a duly authorized issue of securities of the Company (herein
      called the "Securities"), issued and to be issued in one or more series under
      an
      Indenture, dated as of __________, 20__ (herein called, together with all
      indentures supplemental thereto, the "Indenture"), between the Company and
      ___________________, as Trustee (herein called the "Trustee", which term
      includes any successor trustee under the Indenture), to which Indenture and
      all
      indentures supplemental thereto reference is hereby made for a statement of
      the
      respective rights, limitations of rights, duties and immunities thereunder
      of
      the Company, the Trustee and the Holders of the Securities, and of the terms
      upon which the Securities are, and are to be, authenticated and delivered.
      This
      Security is one of the series designated on the face hereof [, initially limited
      (subject to exceptions provided in the Indenture) to the aggregate principal
      amount of $__________].

       

      Subject
        to and upon compliance with the provisions of the Indenture, the Holder of
        this
        Security is entitled, at his option, at any time on or before the close of
        business on _________ __, _____, or in case this Security or a portion
        hereof is called for redemption, then in respect of this Security or such
        portion hereof until and including, but (unless the Company defaults in making
        the payment due upon redemption) not after, the close of business on the
        Business Day immediately preceding the Redemption Date,
        to
        convert this Security (or any portion of the principal amount hereof which
        is
        $1,000 or an integral multiple thereof or in the case of Bearer Securities
        $5,000 or an integral multiple of $5,000), at the principal amount hereof,
        or of
        such portion, into fully paid and non-assessable shares (calculated as to
        each
        conversion to the nearest 1/100 of a share) of Common Stock of the Company
        at a
        conversion price equal to $______ aggregate principal amount of Securities
        for
        each share of Common Stock (or at the current adjusted conversion price if
        an
        adjustment has been made as provided in the Indenture) by surrender of this
        Security, duly endorsed or assigned to the Company or in blank, to the Company
        at its office or agency in _______________, accompanied by written notice
        to the
        Company that the Holder hereof elects to convert this Security, or if less
        than
        the entire principal amount hereof is to be converted, the portion hereof
        to be
        converted (in the case of Bearer Securities, any Bearer Security surrendered
        for
        conversion must be accompanied by all Coupons maturing subsequent to the
        date of
        surrender of such Bearer Security for conversion or the amount of any such
        missing Coupons will be deducted from the amount due on such Security used
        to
        determine the amount of shares of Common Stock such Bearer Security may be
        converted into), and, in case such surrender shall be made during the period
        from the close of business on any Regular Record Date next preceding any
        Interest Payment Date to the opening of business on such Interest Payment
        Date
        (unless this Security or the portion thereof being converted has been called
        for
        redemption on a Redemption Date such that the conversion right of this Security
        would terminate between such Regular Record Date and the close of business
        on
        such Interest Payment Date), also accompanied by payment in funds reasonably
        acceptable to the Company of an amount equal to the interest payable on such
        Interest Payment Date on the principal amount of this Security then being
        converted (with similar provision to be made for Bearer Securities). In case
        surrender of this Security for conversion shall be made during the period
        from
        the close of business on any Regular Record Date next preceding any Interest
        Payment Date to the opening of business on such Interest Payment Date and
        if
        this Security or portion hereof has been called for redemption on a Redemption
        Date with the consequence that the conversion right of this Security would
        terminate between such Regular Record Date and the close of business on such
        Interest Payment Date, then the Holder of this Security will be entitled
        to
        receive the interest accruing hereon from the Interest Payment Date next
        preceding the date of such conversion to such succeeding Interest Payment
        Date
        and shall not be required to pay such interest upon surrender of this Security
        for conversion. Subject 

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    to
      the
      aforesaid requirement for payment and, in the case of a conversion after the
      Regular Record Date next preceding any Interest Payment Date and on or before
      such Interest Payment Date, to the right of the Holder of this Security (or
      any
      Predecessor Security) of record at such Regular Record Date to receive an
      installment of interest (with certain exceptions provided in the Indenture),
      no
      payment or adjustment is to be made on conversion for interest accrued hereon
      or
      for dividends on the Common Stock issued on conversion. No fractions of shares
      or scrip representing fractions of shares will be issued on conversion, but
      instead of any fractional interest the Company shall pay a cash adjustment
      as
      provided in the Indenture. The conversion price is subject to adjustment as
      provided in the Indenture. In addition, the Indenture provides that in case
      of
      certain consolidations or mergers to which the Company is a party or the
      transfer of substantially all of the assets of the Company, the Indenture shall
      be amended, without the consent of any Holders of Securities, so that this
      Security, if then outstanding, will be convertible thereafter, during the period
      this Security shall be convertible as specified above, only into the kind and
      amount of securities, cash and other property receivable upon the consolidation,
      merger or transfer or conveyance by a holder of the number of shares of Common
      Stock into which this Security might have been converted immediately prior
      to
      such consolidation, merger or transfer or conveyance (assuming such holder
      of
      Common Stock failed to exercise any rights of election and received per share
      the kind and amount received per share by a plurality of nonelecting
      shares).

     

    [If
      the
      Security is not an Original Issue Discount Security, insert
      -- If an
      Event of Default with respect to the Securities shall occur and be continuing,
      the principal of the Securities may be declared due and payable in the manner
      and with the effect provided in the Indenture.]

     

    [If
      the
      Security is an Original Issue Discount Security, insert
      - - If
      an Event of Default with respect to Securities of this series shall occur and
      be
      continuing, an amount of principal of the Securities of this series may be
      declared due and payable in the manner and with the effect provided in the
      Indenture. Such amount shall be equal to [insert
      formula for determining the amount].
      Upon
      payment (i) of the amount of principal so declared due and payable and (ii)
      of
      interest on any overdue principal, premium and interest (in each case to the
      extent that the payment of such interest shall be legally enforceable), all
      of
      the Company's obligations in respect of the payment of the principal of and
      premium and interest, if any, on the Securities of this series shall
      terminate.]

     

    [If
      applicable, insert
      -- The
      Securities may not be redeemed prior to the Stated Maturity.]

     

    [If
      applicable, insert
      -- The
      Securities are not subject to any sinking fund.]

     

    [If
      applicable, insert
      -- The
      Securities are subject to redemption [ (l) [If
      applicable, insert
      -- on
      __________ in any year commencing with the year _____ and ending with the year
      _____ through operation of the sinking fund for this series at a Redemption
      Price equal to 100% of the principal amount, and (2)] [If
      applicable, insert
      -- at
      any time [on or after __________], as a whole or in part, at the election of
      the
      Company, at the following Redemption Prices (expressed as percentages of the
      principal amount): if redeemed on or before __________, ___% and if redeemed
      during the 12-month period beginning __________ of the years indicated at the
      Redemption Prices indicated below:

    
      	
               

              Year

            	
               

              Redemption
                Price

            
	 	 

    

     

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    and
      thereafter at a Redemption Price equal to ___% of the principal amount, together
      in the case of any such redemption [If
      applicable, insert
      --
      (whether through operation of the sinking fund or otherwise)] with accrued
      interest to the Redemption Date; provided, however, that installments of
      interest on this Security whose Stated Maturity is on or prior to such
      Redemption Date will be payable to the Holder of this Security, or one or more
      Predecessor Securities, of record at the close of business on the relevant
      Record Dates referred to on the face hereof, all as provided in the
      Indenture.]

     

    [If
      applicable, insert
      -- The
      Securities are subject to redemption (1) on __________ in any year commencing
      with the year _____ and ending with the year _____ through operation of the
      sinking fund for this series at the Redemption Prices for redemption through
      operation of the sinking fund (expressed as percentages of the principal amount)
      set forth in the table below, and (2) at any time [on or after __________],
      as a
      whole or in part, at the election of the Company, at the Redemption Prices
      for
      redemption otherwise than through operation of the sinking fund (expressed
      as
      percentages of the principal amount) set forth in the table below: if redeemed
      during the 12-month period beginning __________ of the years indicated
      below:

    
      	
               

               

               

               

               

              Year

            	
               

              Redemption
                Price for 

               

              Redemption
                through Operation 

               

              of
                the Sinking Fund

            	
               

              Redemption
                Price for

               

              Redemption
                Otherwise than through Operation of the Sinking Fund

            
	 	 	 
	 	 	 

    

     

    and
      thereafter at a Redemption Price equal to ___% of the principal amount, together
      in the case of any such redemption (whether through operation of the sinking
      fund or otherwise) with accrued interest to the Redemption Date; provided,
      however, that installments of interest on this Security whose Stated Maturity
      is
      on or prior to such Redemption Date will be payable to the Holder of this
      Security, or one or more Predecessor Securities, of record at the close of
      business on the relevant Record Dates referred to on the face hereof, all as
      provided in the Indenture.] 

     

    [If
      applicable, insert
      --
      Notwithstanding the foregoing, the Company may not, prior to __________, redeem
      any Securities as contemplated by [Clause (2) of] the preceding paragraph as
      a
      part of, or in anticipation of, any refunding operation by the application,
      directly or indirectly, of moneys borrowed having an interest cost to the
      Company (calculated in accordance with generally accepted financial practice)
      of
      less than ___% per annum.] 

     

    [If
      applicable, insert
      -- The
      sinking fund for the Securities provides for the redemption on __________ in
      each year, beginning with the year _____ and ending with the year _____, of
      [not
      less than] $__________ [("mandatory sinking fund") and not more than
      $__________] aggregate principal amount of the Securities of this series. [The
      Securities acquired or redeemed by the Company otherwise than through
      [mandatory] sinking fund payments may be credited against subsequent [mandatory]
      sinking fund payments otherwise required to be made in the [describe
      order].]]
      

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    [If
      applicable, insert
      --
      Notice of redemption will be given by mail to Holders of Securities, not less
      than 30 nor more than 60 days prior to the Redemption Date, all as provided
      in
      the Indenture.]

     

    In
      the
      event of [If
      applicable, insert
      --
      redemption or] conversion of this Security in part only, a new Security or
      Securities for the [If
      applicable, insert
      --
      unredeemed or] unconverted portion hereof shall be issued in the name of the
      Holder hereof upon the cancellation hereof.

     

    The
      Indenture contains provisions permitting, with certain exceptions as therein
      provided, the amendment thereof and the modification of the rights and
      obligations of the Company and the rights of the Holders of the Securities
      of
      each series issued under the Indenture at any time by the Company and the
      Trustee with the written consent of the Holders of not less than a majority
      in
      aggregate principal amount of the Securities at the time Outstanding of each
      series affected thereby. The Indenture also contains provisions permitting
      the
      Holders of specified percentages in aggregate principal amount of the Securities
      of any series at the time Outstanding, on behalf of the Holders of all
      Securities of such series, to waive compliance by the Company with certain
      provisions of the Indenture and certain past defaults under the Indenture and
      their consequences. Any such consent or waiver by the Holder of this Security
      shall be conclusive and binding upon such Holder and upon all future Holders
      of
      this Securities and of any Securities issued upon the registration of transfer
      hereof or in exchange herefor or in lieu hereof, whether or not notation of
      such
      consent or waiver is made upon this Security.

     

    No
      reference herein to the Indenture and no provision of this Security or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and interest on this Security, at
      the
      times, place and rate, and in the coin or currency, herein or to convert this
      Security, and in the Indenture prescribed.

     

    As
      provided in the Indenture and subject to certain limitations set forth therein
      and in this Security, the transfer of this Security may be registered on the
      Security Register upon surrender of this Security for registration of transfer
      at the office or agency of the Company maintained for that purpose in any place
      where the principal of and interest on this Security are payable, duly endorsed
      by, or accompanied by a written instrument of transfer in form satisfactory
      to
      the Company and the Security Registrar duly executed by, the Holder hereof
      or by
      his attorney duly authorized in writing, and thereupon one or more new
      Securities of this series and of like tenor, of authorized denominations and
      for
      the same aggregate principal amount, will be issued to the designated transferee
      or transferees.

     

    [If
      applicable, insert
      --
The
      Securities are issuable only in registered form [without coupons] in the
      denominations of $__________ and any integral multiple thereof.] As provided
      in
      the Indenture and subject to certain limitations set forth in the Indenture,
      and
      in this Security, the Securities are exchangeable for a like aggregate principal
      amount of Securities of this series in different authorized denominations,
      as
      requested by the Holders surrendering the same.]

     

    No
      service charge shall be made for any such registration of transfer or exchange,
      but the Company may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith, other than in certain
      cases provided in the Indenture. 

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Prior
      to
      due presentment of this Security for registration of transfer, the Company,
      the
      Trustee and any agent of the Company or the Trustee may treat the Person in
      whose name this Security is registered as the owner hereof for all purposes,
      whether or not this Security be overdue, and neither the Company, the Trustee
      nor any such agent shall be affected by notice to the contrary.

     

    [If
      applicable, insert
      --
The
      Indenture contains provisions whereby (i) the Company may be discharged from
      its
      obligations with respect to the Securities (subject to certain exceptions)
      or
      (ii) the Company may be released from its obligations under specified covenants
      and agreements in the Indenture, in each case if the Company irrevocably
      deposits with the Trustee money or Government Obligations, or a combination
      thereof, in an amount sufficient, without consideration of any reinvestment,
      to
      pay and discharge the entire indebtedness on all Securities of this series,
      and
      satisfies certain other conditions, all as more fully provided in the
      Indenture.] 

     

    This
      Security shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to agreements made or instruments entered into
      and,
      in each case, performed in said State. 

     

    All
      terms
      used in this Security without definition that are defined in the Indenture
      shall
      have the meanings assigned to them in the Indenture.

     

    [Remainder
      of Page Intentionally Left Blank]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Unless
      the Certificate of Authentication hereon has been executed by or on behalf
      of
      the Trustee under the Indenture by the manual signature of one of its authorized
      officers, this Security shall not be entitled to any benefits under the
      Indenture or be valid or obligatory for any purpose. 

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this instrument to be duly executed under its corporate
      seal.

     

    EMERITUS
      CORPORATION 

     

    [SEAL]

     

    By:

     

    Name:

     

    Title:
      

     

    

     

    Attest:

     

    By:

     

    Name:

     

    Title:
      

     

    

     

    CERTIFICATE
      OF AUTHENTICATION 

     

    This
      is
      one of the Securities of the series designated therein referred to in the
      within-mentioned Indenture. 

     

    ______________________________

     

    as
      Trustee 

     

    Dated:
       

    By:

    Name:

    Title:
      

    as
      an
      Authorized Officer

     

    

    
      
         

      

      
        8Ex 4.8 Emeritus Corporation Form of Convertible Subordinated Debt Securities
      S-3

     

    EXHIBIT
      4.8

     

    [If
      the Holder of this Security is a depository, such as The Depository Trust
      Company ("DTC") or a nominee of DTC, this Security is a Global Security and
      insert the following two legends:
      

     

    THIS
      SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
      REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY (AS DEFINED IN THE
      INDENTURE) OR A NOMINEE THEREOF. THIS GLOBAL SECURITY IS EXCHANGEABLE FOR
      SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR
      ITS
      NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS
      AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE
      FORM,
      THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY
      TO A NOMINEE OF THE DEPOSITORY, OR BY A NOMINEE OF THE DEPOSITORY TO THE
      DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY, OR BY THE DEPOSITORY OR ANY
      SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR
      DEPOSITORY. 

     

    UNLESS
      THE SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),] TO THE COMPANY (AS DEFINED
      BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
      ANY
      SECURITY ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO. OR IN] SUCH [OTHER]
      NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITORY] [DTC]
      (AND
      ANY PAYMENT IS MADE TO [CEDE & CO. OR TO] SUCH [OTHER] ENTITY AS IS
      REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITORY] [DTC]), ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF[, CEDE & CO.,] HAS AN
      INTEREST HEREIN.] 

     

    [If
      this security is an Original Issue Discount Security, insert
      -- FOR
      PURPOSES OF
      SECTION 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE, THE AMOUNT
      OF
      ORIGINAL ISSUE DISCOUNT ON THIS SECURITY IS ___% OF ITS PRINCIPAL AMOUNT, THE
      ISSUE DATE IS __________, AND THE YIELD TO MATURITY IS ___%. [[THE METHOD USED
      TO DETERMINE THE AMOUNT OF ORIGINAL ISSUE DISCOUNT APPLICABLE TO THE SHORT
      ACCRUAL PERIOD OF __________ TO __________, IS ___% OF THE PRINCIPAL AMOUNT
      OF
      THIS SECURITY.]]

     

    NO.
      ___ $__________

     

    EMERITUS
      CORPORATION

     

    [Designation
      of Series]

     

    EMERITUS
      Corporation, a Washington corporation (hereinafter called the "Company", which
      term includes any successor corporation under the Indenture referred to below),
      for value received, hereby promises to pay to ______________, or registered
      assigns, the principal sum of 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ______________
      Dollars ($________) on ______________,____ [If
      the
      Security is to bear interest prior to Maturity, insert --
      , and
      to pay interest thereon from ______ or from the most recent Interest Payment
      Date to which interest has been paid or duly provided for, semiannually on
      _________ and __________ in each year, commencing _____________, [If
      the
      Security is to bear interest at a fixed rate, insert --
      at the
      rate of ___% per annum] [If
      the
      Security is to bear interest at an adjustable rate, insert --
      at a
      rate per annum computed or determined in accordance with the provisions below],
      until the principal hereof is paid or made available for payment [If
      applicable, insert --,
      and
      (to the extent that the payment of such interest shall be legally enforceable)
      at the rate of ___% per annum on any overdue principal and premium and on any
      overdue installment of interest from the dates such amounts are due until they
      are paid or made available for payment and such interest shall be payable on
      demand].
      [If
      applicable, insert --
      Interest
      on this Security shall be computed on the basis of a 360-day year of twelve
      30-day months. If any Interest Payment Date or the maturity date falls on a
      day
      that is not a Business Day, the required payment shall be made on the next
      Business Day as if it were made on the date such payment was due and no interest
      shall accrue on the amount so payable for the period from and after such
      Interest Payment Date or the maturity date, as the case may be, to such next
      Business Day.] The interest so payable and punctually paid or duly provided
      for
      on any Interest Payment Date will, as provided in such Indenture, be paid to
      the
      Person in whose name this Security (or one or more Predecessor Securities)
      is
      registered at the close of business on the regular record date for such
      interest, which shall be ______________ or ______________ (whether or not a
      Business Day), as the case may be, next preceding such Interest Payment Date.
      Any such interest which is payable but not punctually paid or duly provided
      for
      on any Interest Payment Date shall forthwith cease to be payable to the
      registered Holder hereof on the relevant regular record date by virtue or having
      been such holder, and may be paid to the Person in whose name this Security
      (or
      one or more Predecessor Securities) is registered at the close of business
      on a
      subsequent special record date (which shall be at least 10 days before the
      payment date) for the payment of such defaulted interest to be fixed by the
      Company, notice whereof shall be given to the Holders of Securities of this
      series not less than 10 days prior to such Special Record Date, or may be paid
      at any time in any other lawful manner not inconsistent with the requirements
      of
      any securities exchange on which the Securities may be listed, and upon such
      notice as may be required by such exchange, all as more fully provided in such
      Indenture.

     

    [If
      the
      Security is not to bear interest prior to Maturity, insert -
      - The
      principal of this Security shall not bear interest except in the case of a
      default in payment of principal upon acceleration or redemption or at the Stated
      Maturity and in such case the overdue principal of this Security shall bear
      interest at the rate of ___% per annum (to the extent that the payment of such
      interest shall be legally enforceable), which shall accrue from the date of
      such
      default in payment to the date payment of such principal has been made or duly
      provided for. Interest on any overdue principal shall be payable on demand.
      Any
      such interest on any overdue principal that is not so paid on demand shall
      bear
      interest at the rate of ___% per annum (to the extent that the payment of such
      interest shall be legally enforceable), which shall accrue from the date of
      such
      demand for payment to the date payment of such interest has been made or duly
      provided for, and such interest shall also be payable on demand.]

     

    Payment
      of the principal of and [If
      applicable, insert
      - - any
      such] interest on this Security will be made at the office or agency of the
      Company maintained for that purpose in The Borough of Manhattan, The City of
      New
      York, in such coin or currency of the United States of America as at the time
      of
      payment is legal tender for payment of public and private debts [If
      applicable, insert
      -- ;
      provided, however, that, at the option of the Company, interest may be paid
      by
      check mailed to the address of the Person entitled thereto as such address
      shall
      appear in the Security Register;] [If
      

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    applicable,
      insert
      --
      provided, further, that payment to [DTC or] any [successor] depository may
      be
      made by wire transfer to the account designated by [DTC or] such [successor]
      depository in writing]. 

     

    This
      Security is one of a duly authorized issue of securities of the Company (herein
      called the "Securities"), issued and to be issued in one or more series under
      an
      Indenture, dated as of __________, 20__ (herein called, together with all
      indentures supplemental thereto, the "Indenture"), between the Company and
      ___________________, as Trustee (herein called the "Trustee", which term
      includes any successor trustee under the Indenture), to which Indenture and
      all
      indentures supplemental thereto reference is hereby made for a statement of
      the
      respective rights, limitations of rights, duties and immunities thereunder
      of
      the Company, the Trustee and the Holders of the Securities, and of the terms
      upon which the Securities are, and are to be, authenticated and delivered.
      This
      Security is one of the series designated on the face hereof [, initially limited
      (subject to exceptions provided in the Indenture) to the aggregate principal
      amount of $__________].

       

      Subject
        to and upon compliance with the provisions of the Indenture, the Holder of
        this
        Security is entitled, at his option, at any time on or before the close of
        business on _________ __, _____, or in case this Security or a portion
        hereof is called for redemption, then in respect of this Security or such
        portion hereof until and including, but (unless the Company defaults in making
        the payment due upon redemption) not after, the close of business on the
        Business Day immediately preceding the Redemption Date,
        to
        convert this Security (or any portion of the principal amount hereof which
        is
        $1,000 or an integral multiple thereof or in the case of Bearer Securities
        $5,000 or an integral multiple of $5,000), at the principal amount hereof,
        or of
        such portion, into fully paid and non-assessable shares (calculated as to
        each
        conversion to the nearest 1/100 of a share) of Common Stock of the Company
        at a
        conversion price equal to $______ aggregate principal amount of Securities
        for
        each share of Common Stock (or at the current adjusted conversion price if
        an
        adjustment has been made as provided in the Indenture) by surrender of this
        Security, duly endorsed or assigned to the Company or in blank, to the Company
        at its office or agency in _______________, accompanied by written notice
        to the
        Company that the Holder hereof elects to convert this Security, or if less
        than
        the entire principal amount hereof is to be converted, the portion hereof
        to be
        converted (in the case of Bearer Securities, any Bearer Security surrendered
        for
        conversion must be accompanied by all Coupons maturing subsequent to the
        date of
        surrender of such Bearer Security for conversion or the amount of any such
        missing Coupons will be deducted from the amount due on such Security used
        to
        determine the amount of shares of Common Stock such Bearer Security may be
        converted into), and, in case such surrender shall be made during the period
        from the close of business on any Regular Record Date next preceding any
        Interest Payment Date to the opening of business on such Interest Payment
        Date
        (unless this Security or the portion thereof being converted has been called
        for
        redemption on a Redemption Date such that the conversion right of this Security
        would terminate between such Regular Record Date and the close of business
        on
        such Interest Payment Date), also accompanied by payment in funds reasonably
        acceptable to the Company of an amount equal to the interest payable on such
        Interest Payment Date on the principal amount of this Security then being
        converted (with similar provision to be made for Bearer Securities). In case
        surrender of this Security for conversion shall be made during the period
        from
        the close of business on any Regular Record Date next preceding any Interest
        Payment Date to the opening of business on such Interest Payment Date and
        if
        this Security or portion hereof has been called for redemption on a Redemption
        Date with the consequence that the conversion right of this Security would
        terminate between such Regular Record Date and the close of business on such
        Interest Payment Date, then the Holder of this Security will be entitled
        to
        receive the interest accruing hereon from the Interest Payment Date next
        preceding the date of such conversion to such succeeding Interest Payment
        Date
        and shall not be required to pay such interest upon surrender of this Security
        for conversion. Subject 

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    to
      the
      aforesaid requirement for payment and, in the case of a conversion after the
      Regular Record Date next preceding any Interest Payment Date and on or before
      such Interest Payment Date, to the right of the Holder of this Security (or
      any
      Predecessor Security) of record at such Regular Record Date to receive an
      installment of interest (with certain exceptions provided in the Indenture),
      no
      payment or adjustment is to be made on conversion for interest accrued hereon
      or
      for dividends on the Common Stock issued on conversion. No fractions of shares
      or scrip representing fractions of shares will be issued on conversion, but
      instead of any fractional interest the Company shall pay a cash adjustment
      as
      provided in the Indenture. The conversion price is subject to adjustment as
      provided in the Indenture. In addition, the Indenture provides that in case
      of
      certain consolidations or mergers to which the Company is a party or the
      transfer of substantially all of the assets of the Company, the Indenture shall
      be amended, without the consent of any Holders of Securities, so that this
      Security, if then outstanding, will be convertible thereafter, during the period
      this Security shall be convertible as specified above, only into the kind and
      amount of securities, cash and other property receivable upon the consolidation,
      merger or transfer or conveyance by a holder of the number of shares of Common
      Stock into which this Security might have been converted immediately prior
      to
      such consolidation, merger or transfer or conveyance (assuming such holder
      of
      Common Stock failed to exercise any rights of election and received per share
      the kind and amount received per share by a plurality of nonelecting
      shares).

       

      The
        indebtedness evidenced by the Securities is, to the extent provided in the
        Indenture, subordinate and subject in right of payment to the prior payment
        in
        full of all indebtedness and obligations of the Company as are defined in
        the
        Indenture as "Senior Indebtedness," and this Security is issued subject to
        the
        provisions of the Indenture with respect thereto, and each Holder of this
        Security, by accepting the same, agrees to and shall be bound by such
        provisions. Each Holder of this Security, by accepting the same, agrees that
        each holder of Senior Indebtedness, whether created or acquired before or
        after
        the issuance of this Security, shall be deemed conclusively to have relied
        on
        such subordination provisions in acquiring and continuing to hold, or in
        continuing to hold, such Senior Indebtedness.

     

    [If
      the
      Security is not an Original Issue Discount Security, insert
      -- If an
      Event of Default with respect to the Securities shall occur and be continuing,
      the principal of the Securities may be declared due and payable in the manner
      and with the effect provided in the Indenture.] 

     

    [If
      the
      Security is an Original Issue Discount Security, insert
      - - If
      an Event of Default with respect to Securities of this series shall occur and
      be
      continuing, an amount of principal of the Securities of this series may be
      declared due and payable in the manner and with the effect provided in the
      Indenture. Such amount shall be equal to [insert
      formula for determining the amount].
      Upon
      payment (i) of the amount of principal so declared due and payable and (ii)
      of
      interest on any overdue principal, premium and interest (in each case to the
      extent that the payment of such interest shall be legally enforceable), all
      of
      the Company's obligations in respect of the payment of the principal of and
      premium and interest, if any, on the Securities of this series shall
      terminate.]

     

    [If
      applicable, insert
      -- The
      Securities may not be redeemed prior to the Stated Maturity.]

     

    [If
      applicable, insert
      -- The
      Securities are not subject to any sinking fund.]

     

    [If
      applicable, insert
      -- The
      Securities are subject to redemption [ (l) [If
      applicable, insert
      -- on
      __________ in any year commencing with the year _____ and ending with the year
      _____ through operation of the sinking fund for this series at a Redemption
      Price equal to 100% of the 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    principal
      amount, and (2)] [If
      applicable, insert
      -- at
      any time [on or after __________], as a whole or in part, at the election of
      the
      Company, at the following Redemption Prices (expressed as percentages of the
      principal amount): if redeemed on or before __________, ___% and if redeemed
      during the 12-month period beginning __________ of the years indicated at the
      Redemption Prices indicated below:

    
      	
               

              Year

            	
               

              Redemption
                Price

            
	 	 
	 	 

    

     

    and
      thereafter at a Redemption Price equal to ___% of the principal amount, together
      in the case of any such redemption [If
      applicable, insert
      --
      (whether through operation of the sinking fund or otherwise)] with accrued
      interest to the Redemption Date; provided, however, that installments of
      interest on this Security whose Stated Maturity is on or prior to such
      Redemption Date will be payable to the Holder of this Security, or one or more
      Predecessor Securities, of record at the close of business on the relevant
      Record Dates referred to on the face hereof, all as provided in the
      Indenture.]

     

    [If
      applicable, insert
      -- The
      Securities are subject to redemption (1) on __________ in any year commencing
      with the year _____ and ending with the year _____ through operation of the
      sinking fund for this series at the Redemption Prices for redemption through
      operation of the sinking fund (expressed as percentages of the principal amount)
      set forth in the table below, and (2) at any time [on or after __________],
      as a
      whole or in part, at the election of the Company, at the Redemption Prices
      for
      redemption otherwise than through operation of the sinking fund (expressed
      as
      percentages of the principal amount) set forth in the table below: if redeemed
      during the 12-month period beginning __________ of the years indicated
      below:

    
      	
               

               

               

               

               

              Year

            	
               

              Redemption
                Price for 

               

              Redemption
                through Operation 

               

              of
                the Sinking Fund

            	
               

              Redemption
                Price for

               

              Redemption
                Otherwise than through Operation of the Sinking Fund

            
	 	 	 
	 	 	 

    

     

    and
      thereafter at a Redemption Price equal to ___% of the principal amount, together
      in the case of any such redemption (whether through operation of the sinking
      fund or otherwise) with accrued interest to the Redemption Date; provided,
      however, that installments of interest on this Security whose Stated Maturity
      is
      on or prior to such Redemption Date will be payable to the Holder of this
      Security, or one or more Predecessor Securities, of record at the close of
      business on the relevant Record Dates referred to on the face hereof, all as
      provided in the Indenture.] 

     

    [If
      applicable, insert
      --
      Notwithstanding the foregoing, the Company may not, prior to __________, redeem
      any Securities as contemplated by [Clause (2) of] the preceding paragraph as
      a
      part of, or in anticipation of, any refunding operation by the application,
      directly or indirectly, of 

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    moneys
      borrowed having an interest cost to the Company (calculated in accordance with
      generally accepted financial practice) of less than ___% per annum.]

     

    [If
      applicable, insert
      -- The
      sinking fund for the Securities provides for the redemption on __________ in
      each year, beginning with the year _____ and ending with the year _____, of
      [not
      less than] $__________ [("mandatory sinking fund") and not more than
      $__________] aggregate principal amount of the Securities of this series. [The
      Securities acquired or redeemed by the Company otherwise than through
      [mandatory] sinking fund payments may be credited against subsequent [mandatory]
      sinking fund payments otherwise required to be made in the [describe
      order].]]
      

     

    [If
      applicable, insert
      --
      Notice of redemption will be given by mail to Holders of Securities, not less
      than 30 nor more than 60 days prior to the Redemption Date, all as provided
      in
      the Indenture.]

     

    In
      the
      event of [If
      applicable, insert
      --
      redemption or] conversion of this Security in part only, a new Security or
      Securities for the [If
      applicable, insert
      --
      unredeemed or] unconverted portion hereof shall be issued in the name of the
      Holder hereof upon the cancellation hereof.

     

    The
      Indenture contains provisions permitting, with certain exceptions as therein
      provided, the amendment thereof and the modification of the rights and
      obligations of the Company and the rights of the Holders of the Securities
      of
      each series issued under the Indenture at any time by the Company and the
      Trustee with the written consent of the Holders of not less than a majority
      in
      aggregate principal amount of the Securities at the time Outstanding of each
      series affected thereby. The Indenture also contains provisions permitting
      the
      Holders of specified percentages in aggregate principal amount of the Securities
      of any series at the time Outstanding, on behalf of the Holders of all
      Securities of such series, to waive compliance by the Company with certain
      provisions of the Indenture and certain past defaults under the Indenture and
      their consequences. Any such consent or waiver by the Holder of this Security
      shall be conclusive and binding upon such Holder and upon all future Holders
      of
      this Securities and of any Securities issued upon the registration of transfer
      hereof or in exchange herefor or in lieu hereof, whether or not notation of
      such
      consent or waiver is made upon this Security.

     

    No
      reference herein to the Indenture and no provision of this Security or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and interest on this Security, at
      the
      times, place and rate, and in the coin or currency, herein or to convert this
      Security, and in the Indenture prescribed.

     

    As
      provided in the Indenture and subject to certain limitations set forth therein
      and in this Security, the transfer of this Security may be registered on the
      Security Register upon surrender of this Security for registration of transfer
      at the office or agency of the Company maintained for that purpose in any place
      where the principal of and interest on this Security are payable, duly endorsed
      by, or accompanied by a written instrument of transfer in form satisfactory
      to
      the Company and the Security Registrar duly executed by, the Holder hereof
      or by
      his attorney duly authorized in writing, and thereupon one or more new
      Securities of this series and of like tenor, of authorized denominations and
      for
      the same aggregate principal amount, will be issued to the designated transferee
      or transferees.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    [If
      applicable, insert
      --
The
      Securities are issuable only in registered form [without coupons] in the
      denominations of $__________ or any integral multiple thereof.] As provided
      in
      the Indenture and subject to certain limitations set forth in the Indenture,
      and
      in this Security, the Securities are exchangeable for a like aggregate principal
      amount of Securities of this series in different authorized denominations,
      as
      requested by the Holders surrendering the same.]

     

    No
      service charge shall be made for any such registration of transfer or exchange,
      but the Company may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith, other than in certain
      cases provided in the Indenture. 

     

    Prior
      to
      due presentment of this Security for registration of transfer, the Company,
      the
      Trustee and any agent of the Company or the Trustee may treat the Person in
      whose name this Security is registered as the owner hereof for all purposes,
      whether or not this Security be overdue, and neither the Company, the Trustee
      nor any such agent shall be affected by notice to the contrary.

     

    [If
      applicable, insert
      --
The
      Indenture contains provisions whereby (i) the Company may be discharged from
      its
      obligations with respect to the Securities (subject to certain exceptions)
      or
      (ii) the Company may be released from its obligations under specified covenants
      and agreements in the Indenture, in each case if the Company irrevocably
      deposits with the Trustee money or Government Obligations, or a combination
      thereof, in an amount sufficient, without consideration of any reinvestment,
      to
      pay and discharge the entire indebtedness on all Securities of this series,
      and
      satisfies certain other conditions, all as more fully provided in the
      Indenture.] 

     

    This
      Security shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to agreements made or instruments entered into,
      and
      in each case, performed in said State. 

     

    All
      terms
      used in this Security without definition that are defined in the Indenture
      shall
      have the meanings assigned to them in the Indenture.

     

    [Remainder
      of Page Intentionally Left Blank]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Unless
      the Certificate of Authentication hereon has been executed by or on behalf
      of
      the Trustee under the Indenture by the manual signature of one of its authorized
      officers, this Security shall not be entitled to any benefits under the
      Indenture or be valid or obligatory for any purpose. 

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this instrument to be duly executed under its corporate
      seal.

     

    EMERITUS
      CORPORATION 

     

    [SEAL]

     

    By:

     

    Name:

     

    Title:
      

     

    

     

    Attest:

     

    By:

     

    Name:

     

    Title:
      

     

    

     

    CERTIFICATE
      OF AUTHENTICATION 

     

    This
      is
      one of the Securities of the series designated therein referred to in the
      within-mentioned Indenture. 

     

    ______________________________

     

    as
      Trustee 

     

    Dated:
       

    By:

    Name:

    Title:
      

    as
      an
      Authorized Officer

     

    

    
      
         

      

      
        8

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