X0304 4 2012-03-01 0 0000944765 MERGE HEALTHCARE INC MRGE 0001437683 Merrick RIS, LLC 350 NORTH ORLEANS STREET 10TH FLOOR CHICAGO IL 60654 0 0 1 0 0001163431 FERRO MICHAEL W JR 350 NORTH ORLEANS STREET 10TH FLOOR CHICAGO IL 60654 1 0 1 0 Common Stock 31523637 D Common Stock 500000 I Parent Holding Stock Options 6.33 2012-03-01 4 A 0 800000 0.00 A 2013-03-01 2018-02-28 Common Stock 800000 1200000 D Shares issued to Merrick Healthcare Solutions, LLC, an Indiana limited liability company (prior to its dissolution, "Merrick Healthcare"), as consideration of the purchase price of the acquisition by Merge Healthcare Incorporated ("Merge Healthcare") of the assets of and relating to the Olivia Greets business line previously owned by Merrick Healthcare, a former wholly owned subsidiary operation of Merrick Ventures, LLC, a private investment firm ("Merrick Ventures"), of which Merrick RIS, LLC, a Delaware limited liability company ("Merrick RIS"), is also a subsidiary. These shares were subsequently transferred from Merrick Healthcare to Merrick Ventures. Merrick RIS is not a beneficial owner of these shares held by Merrick Healthcare. Nonqualified stock options to purchase shares of Common Stock granted to Michael W. Ferro, Jr., Chairman of the Board, in lieu of cash compensation in accordance with Merge Healthcare's Director Compensation Plan. Nonqualified stock options to purchase 200,000 shares of Common Stock vesting on each of March 1, 2013, March 1, 2014, March 1, 2015 and March 1, 2016. The reporting persons are Merrick RIS, LLC ("Merrick RIS"), a Delaware limited liability company, and Michael W. Ferro, Jr. ("Mr. Ferro"), the Chairman of the Board of Directors of Merge Healthcare Incorporated. Mr. Ferro shares voting and investment power with respect to the Merge Common Stock held by Merrick RIS and, accordingly, may be deemed for purposes of Rule 13d-3 of the Securities and Exchange Act of 1934, as amended, the beneficial owner of securities held by Merrick RIS. The address of the reporting persons is 350 North Orleans Street, 10th Floor, Chicago, Illinois 60654. Julie Ann B. Schumitsch, by Power of Attorney for Merrick RIS, LLC 2012-03-05 Julie Ann B. Schumitsch, by Power of Attorney for Michael W. Ferro, Jr. 2012-03-05