Sec Form 4 Filing - RECK RICHARD A @ MERGE HEALTHCARE INC - 2015-10-13

Insider filing report for Changes in Beneficial Ownership
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FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person
RECK RICHARD A
2. Issuer Name and Ticker or Trading Symbol
MERGE HEALTHCARE INC [ MRGE]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
X __ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last) (First) (Middle)
350 NORTH ORLEANS STREET,, FIRST FLOOR
3. Date of Earliest Transaction (MM/DD/YY)
10/13/2015
(Street)
CHICAGO, IL60654
4. If Amendment, Date Original Filed (MM/DD/YY)
6. Individual or Joint/Group Filing (Check Applicable Line)
__ X __ Form filed by One Reporting Person
_____ Form filed by More than One Reporting Person
(City) (State) (Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 10/13/2015 D 48,863 D $ 7.13 ( 1 ) 0 D
Common Stock 10/13/2015 D 249,610 D $ 7.13 ( 1 ) 0 I Trust ( 2 )
Common Stock 10/13/2015 D 10,000 D $ 7.13 ( 1 ) 0 I Trust ( 3 )
Restricted Common Stock 10/13/2015 D 23,585 D $ 7.13 ( 4 ) 0 D
Restricted Common Stock 10/13/2015 D 1,769 D $ 7.13 ( 5 ) 0 D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(MM/DD/YY)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Options $ 6.59 10/13/2015 D 15,000 ( 6 ) 12/27/2016 Common Stock 15,000 $ 0.54 ( 6 ) 0 D
Stock Options $ 6.01 10/13/2015 D 15,000 ( 7 ) 05/10/2017 Common Stock 15,000 $ 1.12 ( 7 ) 0 D
Stock Options $ 1.47 10/13/2015 D 225,000 ( 8 ) 08/18/2018 Common Stock 225,000 $ 5.66 ( 8 ) 0 D
Stock Options $ 6.33 10/13/2015 D 225,000 ( 9 ) 02/28/2018 Common Stock 225,000 $ 0.8 ( 9 ) 0 D
Reporting Owners
Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
RECK RICHARD A
350 NORTH ORLEANS STREET,
FIRST FLOOR
CHICAGO, IL60654
X
Signatures
/s/ Julie Ann B. Schumitsch, by Power of Attorney for Richard A. Reck 10/15/2015
Signature of Reporting Person Date
Explanation of Responses:
( 1 )Disposed of pursuant to the Agreement and Plan of Merger dated as of August 6, 2015, by and among International Business Machines Corporation, Datong Acquisition Corp. and Issuer, Merge Healthcare Incorporated (the "Merger"), in which the Issuer's holders of common stock, as of the effective time of the Merger, October 13, 2015, were entitled to receive $7.13 per share of common stock (the "Merger Consideration").
( 2 )Shares of Common Stock held by the Richard A. Reck Trust, for the benefit of Mr. Reck, of which Mr. Reck is the trustee, the beneficial ownership of which Mr. Reck disclaims.
( 3 )Shares of Common Stock held by the Alan C. Reck Trust, for the benefit of Mr. Reck's adult son, of which the grandparents of Mr. Reck's adult son are the grantors and Mr. Reck is the trustee; the beneficial ownership of which Mr. Reck disclaims.
( 4 )This Restricted Stock Award ("RSA") granted pursuant to the 2005 Equity Incentive Plan (a Rule 16b-3 shareholder approved employee benefit plan) of Issuer, provided for the restrictions on such shares to lapse with such shares becoming immediately and fully vested on June 17, 2016, subject to additional terms and conditions as set forth in the Reporting Person's RSA agreement. Pursuant to the Merger, the shares outstanding under the RSA were cancelled in exchange for the Merger Consideration.
( 5 )This Restricted Stock Award ("RSA") granted pursuant to the 2005 Equity Incentive Plan (a Rule 16b-3 shareholder approved employee benefit plan) of Issuer, provided for the restrictions on such shares to lapse with such shares becoming immediately and fully vested to the extent of one fourth of such shares on each of September 17, 2015, December 17, 2015, March 17, 2016 and June 17, 2016, as set forth in the Reporting Person's RSA agreement. Pursuant to the Merger, the remaining shares outstanding under the RSA were cancelled in exchange for a cash payment equal to the Merger Consideration.
( 6 )This Nonqualified Stock Option granted on December 28, 2006, which vested on the date of grant, was cancelled at the effective time of the Merger in exchange for a cash payment of $8,100, representing the difference between the exercise price of the option and the Merger Consideration.
( 7 )This Nonqualified Stock Option granted on May 11, 2007, which vested in four (4) equal installments to purchase 3,750 shares of Common Stock on each of June 30, 2007, September 30, 2007, December 31, 2007 and March 31, 2008, was cancelled at the effective time of the Merger in exchange for a cash payment of $16,800, representing the difference between the exercise price of the option and the Merger Consideration.
( 8 )This Nonqualified Stock Option granted on August 19, 2008, which vested in sixteen (16) equal quarterly increments to purchase 14,062.5 shares of Common Stock, with the first increment vesting on August 19, 2008, and then subsequent increments vesting on November 30, February 28, May 31 and August 31 thereafter, was cancelled at the effective time of the Merger in exchange for a cash payment of $1,273,500, representing the difference between the exercise price of the option and the Merger Consideration.
( 9 )This Nonqualified Stock Option granted on March 1, 2012, which vested in four (4) equal annual installments to purchase 56,250 shares of Common Stock on each of March 1, 2013, March 1, 2014, March 1, 2015 and March 1, 2016, was cancelled at the effective time of the Merger in exchange for a cash payment of $180,000, representing the difference between the exercise price of the option and the Merger Consideration.

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