----

|  | ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--|---------|------------------------------------------------------------------------------------------------|

|  | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--|---------|----------------------------------------------------------------------------------------------------|

| Delaware                                                       |   | 39-1600938                             |
|----------------------------------------------------------------|--------|----------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I. R. S. Employer Identification No.) |
| Title of Each Class                     |  | Name of Each Exchange on Which Registered |
|-----------------------------------------|--|-------------------------------------------|
| Common Stock, $0.01 par value per share |  | The NASDAQ Global Select Market           |
| Large accelerated filer ☐ | Accelerated filer ☒ | Non-accelerated filer ☐ | Smaller reporting company ☐ |
|---------------------------------------|---------------------------------|-------------------------------------|-----------------------------------------|

----

----

----

| Item 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------|--------------------------------------------------------|

| Name                  | Age | Position                                                             |
|-----------------------|-----|----------------------------------------------------------------------|
| Michael P. Cole       | 43  | Director                                                             |
| Justin C. Dearborn    | 45  | Director, Chief Executive Officer, President and Corporate Secretary |
| William J. Devers Jr. | 81  | Director                                                             |
| Michael W. Ferro, Jr. | 48  | Chairman of the Board                                                |
| Matthew M. Maloney    | 39  | Director                                                             |
| Richard A. Reck       | 65  | Director                                                             |
| Neele E. Stearns, Jr. | 79  | Director                                                             |

----

----

----

----

|  | • | Audit Committee Charter |
|--|---------|-------------------------|

|  | • | Compensation Committee Charter |
|--|---------|--------------------------------|

|  | • | Nominating and Governance Committee Charter |
|--|---------|---------------------------------------------|

|  | • | Code of Ethics |
|--|---------|----------------|

|  | • | Whistleblower Policy |
|--|---------|----------------------|

|  | • | Certificate of Incorporation |
|--|---------|------------------------------|

|  | • | Bylaws |
|--|---------|--------|

|  | • | Insider Trading Agreement |
|--|---------|---------------------------|

| Name                  |   | Audit                 |   | Compensation |   | Executive       |   | Nominating and Governance |
|-----------------------|--------|-----------------------|--------|--------------|--------|-----------------|--------|---------------------------|
| Dennis Brown          |   | X                     |   |         |   |   X * |   | X                         |
| Michael P. Cole       |   |                  |   |         |   |            |   |                      |
| Justin C. Dearborn    |   |                  |   |         |   | X               |   |                      |
| William J. Devers Jr. |   |                  |   |  X*     |   | X               |   |                      |
| Michael W. Ferro, Jr. |   |                  |   |         |   |            |   |                      |
| Nancy J. Koenig       |   |                  |   |         |   |            |   |                      |
| Matthew M. Maloney    |   |                  |   |         |   |            |   | X                         |
| Richard A. Reck       |   | X                     |   | X            |   |            |   |   X*            |
| Neele E. Stearns, Jr. |   |    X * |   | X            |   | X               |   |                      |

----

----

----

| Name                 | Age | Position                                                                     |
|----------------------|-----|------------------------------------------------------------------------------|
| Justin C. Dearborn   | 45  | Chief Executive Officer, President, Corporate Secretary and Director         |
| Nancy J. Koenig      | 50  | Chief Operating Officer and Director                                         |
| Steven M. Oreskovich | 43  | Chief Financial Officer and Treasurer                                        |
| Kurt R. Hammond      | 48  | Chief Sales and Marketing Officer                                            |
| Antonia A. Wells     | 56  | President, International Division and Chief Research and Development Officer |

----

| Item 11. | Executive Compensation |
|----------|------------------------|

|  | • | attracting and retaining talented executives by providing compensation that generally aligns with the compensation provided to executives at public companies of comparable size and with a similar growth trajectory in the health care information technology industry, while maintaining compensation at levels that reflects our annual budget, operating initiatives and overall job responsibilities; and |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | providing appropriate incentives for executives to achieve our financial performance and business goals, which we believe influences increased stockholder value over time. |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Accelrys, Inc.                      | HealthStream, Inc.        |
|-------------------------------------|---------------------------|
| Actuate Corporation                 | iCAD, Inc.                |
| Alliance HealthCare Services, Inc.  | IntraLinks Holdings, Inc. |
| athenahealth, Inc.                  | Medidata Solutions, Inc   |
| Computer Programs and Systems, Inc. | Qlik Technologies Inc.    |
| Comverse, Inc.                      | Quality Systems, Inc.     |
| ExamWorks Group, Inc.               | RadNet, Inc               |
| Greenway Medical Technologies, Inc. | Tableau Software, Inc.    |

----

| Name and Principal Position                                                      |   | 2013 Base Salary |    |      | 2014 Base Salary |   |    | Percentage Increase |   |
|----------------------------------------------------------------------------------|--------|------------------|---------|-----------|------------------|--------|---------|---------------------|--------|
|                                                                             |   |                  |    |      |                  |   |    |                     |   |
| Justin C. DearbornChief Executive Officer, President & Corporate Secretary   |   | $                | 400,000 |      |             | $      | 400,000 |                |   |   | 0 | % |
|                                                                             |   |             |    |      |             |   |    |                |   |   |   |   |
| Nancy J. KoenigChief Operating Officer                                           |   | $                | 305,000 |      |             | $      | 305,000 |                |   |   | 0 | % |
|                                                                             |   |             |    |      |             |   |    |                |   |   |   |   |
| Steven M. OreskovichChief Financial Officer and Treasurer                        |   | $                | 250,000 |      |             | $      | 250,000 |                |   |   | 0 | % |
|                                                                             |   |             |    |      |             |   |    |                |   |   |   |   |
| Steven F. TolleChief Strategy Officer                                            |   | $                | 260,000 |      |             | $      | 260,000 |                |   |   | 0 | % |
|                                                                             |   |             |    |      |             |   |    |                |   |   |   |   |
| Antonia A. WellsPresident, International and Chief of Research & Development |   | $                | 206,844 | (1)  |             | $      | 189,640 | (1)            |   |   | 0 | % |

----

| (1) | Ms. Wells’ 2013 and  2014 base salary has been converted from CDN $220,000 to U. S. Dollars, based on the Bank of Canada Noon Spot Rate on each of December 31, 2013 (U.S. $1 = CDN $0.9402) and December 31, 2014 (U.S. $1 = CDN $0.8620), respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Adjusted EBITDA (in millions) |   |   | Bonus Payout |   |
|-------------------------------|--------|--------|--------------|--------|
| $                             | 42.0   |   |         |   | 50 | % |
| $                             | 43.4   |   |         |   | 75 | % |
| $                             | 44.8   |   |         |   | 100 | % |
| $                             | 46.1   |   |         |   | 125 | % |

----

| Name and Principal Position                                                    |   | Target Bonus(% of Base Salary)(1) |   |   | Target Bonus ($)(1) |   |
|--------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|---------------------|--------|
|                                                                           |   |                                   |   |   |                     |   |
| Justin C. DearbornChief Executive Officer, President & Corporate Secretary |   |                              | 100%   |   |                | $      | 400,000 |   |
|                                                                           |   |                              |   |   |                |   |   |   |
| Nancy J. KoenigChief Operating Officer                                         |   |                              | 100%   |   |                | $      | 305,000 |   |
|                                                                           |   |                              |   |   |                |   |   |   |
| Steven M. OreskovichChief Financial Officer and Treasurer                      |   |                              | 75%    |   |                | $      | 187,500 |   |
|                                                                           |   |                              |   |   |                |   |   |   |
| Steven F. TolleChief Strategy Officer                                          |   |                              | 50%    |   |                | $      | 130,000 |   |
|                                                                           |   |                              |   |   |                |   |   |   |
| Antonia A. WellsPresident, International and Chief, R&D                    |   |                              | 70%    |   |                | $      | 132,748 | (2)  |
| Name and Principal Position                                                    |   | Bonus Payment |    |
|--------------------------------------------------------------------------------|--------|---------------|---------|
|                                                                           |   |               |    |
| Justin C. DearbornChief Executive Officer, President & Corporate Secretary |   | $             | 350,000 |   |
|                                                                           |   |          |    |   |
| Nancy J. KoenigChief Operating Officer                                         |   | $             | 299,281 |   |
|                                                                           |   |          |    |   |
| Steven M. OreskovichChief Financial Officer and Treasurer                      |   | $             | 159,531 |   |
|                                                                           |   |          |    |   |
| Steven F. TolleChief Strategy Officer                                          |   | $             | 113,757 |   |
|                                                                           |   |          |    |   |
| Antonia A. WellsPresident, International and Chief, R&D                    |   | $             | 59,123  | (1)  |

| (1) | Ms. Wells’ bonus payment has been converted from CDN $68,588 to U. S. Dollars, based on the Bank of Canada Noon Spot Rate on December 31, 2014 (U.S. $1 = CDN $0.8620). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name and Principal Position                                                    |   | Year   |         |   | Salary($) |   |                  | Bonus($) |   |   | StockAwards(1)($)     |   |   | OptionAwards(1)($) |                  |   | Non–EquityIncentive PlanCompensation(2)($) |   |                                | All OtherCompensation(3)($) |   |   | Total($)              |   |
|--------------------------------------------------------------------------------|--------|--------|--------------|--------|-----------|--------|-----------------------|----------|--------|--------|-----------------------|--------|--------|--------------------|-----------------------|--------|--------------------------------------------------|--------|-------------------------------------|-----------------------------|--------|--------|-----------------------|--------|
|                                                                           |   |        |         |   |           |   |                  |          |   |   |                       |   |   |                    |                  |   |                                                  |   |                                |                             |   |   |                       |   |
| Justin C. DearbornChief Executive Officer, President & Corporate Secretary |   |   | 201420132012 |   |      |   | 400,000347,500330,000 |     |   |   | ——— |   |   |               | —864,500— |   |                                             |   | ––––549,720 |                        |   |   | 350,000—— |   |   |   | 22,79619,84318,551 |   |   |   | 772,7961,231,843898,271 |   |
|                                                                           |   |   |         |   |      |   |                  |     |   |   |                  |   |   |               |                  |   |                                             |   |                                |                        |   |   |                  |   |   |   |   |   |   |   |   |   |
| Nancy J. KoenigChief Operating Officer                                         |   |   | 20142013     |   |      |   | 305,000277,917        |     |   |   | ——        |   |   |               | —864,500        |   |                                             |   | ––—               |                        |   |   | 299,281—        |   |   |   | 14,23012,935 |   |   |   | 618,5111,155,352 |   |
|                                                                           |   |   |         |   |      |   |                  |     |   |   |                  |   |   |               |                  |   |                                             |   |                                |                        |   |   |                  |   |   |   |   |   |   |   |   |   |
| Steven M. OreskovichChief Financial Officer and Treasurer                      |   |   | 201420132012 |   |      |   | 250,000250,000240,625 |     |   |   | ——— |   |   |               | —432,250— |   |                                             |   | ––—549,720        |                        |   |   | 159,531—— |   |   |   | 22,94121,84918,172 |   |   |   | 432,472704,099808,517 |   |
|                                                                           |   |   |         |   |      |   |                  |     |   |   |                  |   |   |               |                  |   |                                             |   |                                |                        |   |   |                  |   |   |   |   |   |   |   |   |   |
| Steven F. TolleChief Strategy Officer                                          |   |   | 20142013     |   |      |   | 260,000260,000        |     |   |   | ——        |   |   |               | —432,250        |   |                                             |   | ––37,843                |                        |   |   | 113,757—        |   |   |   | 23,24121,143 |   |   |   | 396,998751,236 |   |
|                                                                           |   |   |         |   |      |   |                  |     |   |   |                  |   |   |               |                  |   |                                             |   |                                |                        |   |   |                  |   |   |   |   |   |   |   |   |   |
| Antonia A. WellsPresident, International and Chief, R&D                    |   |   | 20142013     |   |      |   | 189,640206,844        | (4)(5)   |   |   | ——        |   |   |               | —432,250        |   |                                             |   | ––—               |                        |   |   | 59,123—         | (4)    |   |   | 8,5239,537 | (4)(5) |   |   | 257,286648,631 |   |

----

| (1) | The dollar amounts for the awards represent the grant date fair value calculated in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 718 (“FASB ASC 718”) for each Named Executive Officer.  Assumptions used in the calculation of these amounts are described in Note 8 to our audited financial statements for the fiscal year ended December 31, 2014 included in our Annual Report on Form 10–K, filed with the Commission on February 27, 2015. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Reflects payments of company and individual performance–based cash bonuses earned during the 2014 fiscal year and paid in the first quarter of 2015.  No performance–based cash bonuses were granted or paid in fiscal 2012 or 2013. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | For 2014, represents our matching contribution under our 401(k) employee retirement savings plan ($7,800 for Mr. Dearborn, $7,800 for Ms. Koenig, $7,500 for Mr. Oreskovich, and $7,800 for Mr. Tolle), represents our matching contribution of U.S.$5,689 for Ms. Wells under our Deferred Profit Sharing Plan (DPSP) for our Canadian employees, and medical, dental, optical, long term disability and life insurance benefits ($14,996 for Mr. Dearborn, $6,430 for Ms. Koenig, $15,441 for Mr. Oreskovich, $15,441 for Mr. Tolle, and U. S.$2,834 for Ms. Wells).  For 2013, represents our matching contribution under our 401(k) employee retirement savings plan ($4,400 for Mr. Dearborn, $6,431 for Ms. Koenig, $6,406 for Mr. Oreskovich, and $5,700 for Mr. Tolle,), represents our matching contribution of U. S.$6,205 for Ms. Wells under our Deferred Profit Sharing Plan (DPSP) for our Canadian employees, and medical, dental, optical, long term disability and life insurance benefits ($15,443 for Mr. Dearborn, $6,504 for Ms. Koenig, $15,443 for Mr. Oreskovich, $15,443 for Mr. Tolle, and U. S.$3,332 for Ms. Wells).  For 2012, represents our matching contribution under our 401(k) employee retirement savings plan ($6,250 for Mr. Dearborn, and $6,255 for Mr. Oreskovich) and medical, dental, optical, long term disability and life insurance benefits ($12,301 for Mr. Dearborn, and $11,916 for Mr. Oreskovich). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Ms. Wells’ 2014 compensation has been converted from Canadian Dollars to U. S. Dollars, based on the Bank of Canada Noon Spot Rate on December 31, 2014 (U.S. $1 = CDN $0.8620). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Ms. Wells’ 2013 compensation has been converted from Canadian Dollars to U. S. Dollars, based on the Bank of Canada Noon Spot Rate on December 31, 2013 (U.S $1 = CDN $0.9402). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                 | Grant Date               |   | Estimated Future Payouts Under Non–Equity Incentive Plan Awards |   |
|----------------------|--------------------------|--------|-----------------------------------------------------------------------|--------|
|       |      |   | Threshold($)                                                          |   |   | Target($) |   |   | Maximum($) |   |
|                 |                     |   |                                                                       |   |   |  |   |   |  |   |
| Justin C. Dearborn   | February 17, 2014        |   |                                                                  | 0      |   |   |   | 400,000 |   |   |   | 500,000 |   |
|                 |                     |   |                                                                  |   |   |   |   |   |   |   |   |   |   |
| Nancy J. Koenig      | February 17, 2014        |   |                                                                  | 0      |   |   |   | 305,000 |   |   |   | 381,250 |   |
|                 |                     |   |                                                                  |   |   |   |   |   |   |   |   |   |   |
| Steven M. Oreskovich | February 17, 2014        |   |                                                                  | 0      |   |   |   | 187,500 |   |   |   | 234,375 |   |
|                 |                     |   |                                                                  |   |   |   |   |   |   |   |   |   |   |
| Steven F. Tolle      | February 17, 2014        |   |                                                                  | 0      |   |   |   | 130,000 |   |   |   | 162,500 |   |
|                 |                     |   |                                                                  |   |   |   |   |   |   |   |   |   |   |
| Antonia A. Wells(1)  | February 17, 2014        |   |                                                                  | 0      |   |   |   | 132,748 |   |   |   | 165,935 |   |

| (1) | Ms. Wells’ target and maximum award amounts of $154,000 and $192,500, respectively, have been converted from Canadian Dollars to U.S. Dollars, based on the Bank of Canada Noon Spot Rate on December 31, 2014 (USD$1=CDN$0.8620). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                 |   | OPTION AWARDS                                                       |              | STOCK AWARDS |                                                                 |
|----------------------|--------|---------------------------------------------------------------------|-------------------|--------------|----------------------------------------------------------------------|
|                 |   |                                                                     |              |         |                                                                      |   |   |  |   |   |   |   |  |   |   |  |   |
| Name                 |   | Number of Securities Underlying Unexercised Options (#) Exercisable |              |         | Number of Securities UnderlyingUnexercised Options (#) Unexercisable |   |   | Option Exercise Price($) |   | Option Grant Date(1) | Option ExpirationDate |   | Number of Shares orUnits of Stock That Have Not Vested (#)(2) |   |   | MarketValue of Shares or Units of Stock That Have Not Vested ($)(3) |   |
|                 |   |                                                                     |              |         |                                                                      |   |   |  |   |   |   |   |  |   |   |  |   |
| Justin C. Dearborn   |   |                                                                | 400,000150,000    |         |                                                                 |   | ––150,000 |   |   |   | 2.502.67 |   | 05/04/201005/09/2012 | 05/03/201605/08/2018 |   |   | 234,500 |   |   |   | 834,820 |   |
|                 |   |                                                                |              |         |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nancy J. Koenig      |   |                                                                | 100,00050,000     |         |                                                                 |   | ––50,000 |   |   |   | 2.506.33 |   | 05/04/201003/01/2012 | 05/03/201602/28/2018 |   |   | 234,500 |   |   |   | 834,820 |   |
|                 |   |                                                                |              |         |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Steven M. Oreskovich |   |                                                                | 75,000150,000     |         |                                                                 |   | ––150,000 |   |   |   | 2.502.67 |   | 05/04/201005/09/2012 | 05/03/201605/08/2018 |   |   | 117,250 |   |   |   | 417,410 |   |
|                 |   |                                                                |              |         |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Steven F. Tolle      |   |                                                                | 67,50050,0006,250 |         |                                                                 |   | 22,50050,00018,750 |   |   |   | 6.076.333.09 |   | 11/01/201103/01/201204/05/2013 | 10/31/201702/28/201804/04/2019 |   |   | 117,250 |   |   |   | 417,410 |   |
|                 |   |                                                                |              |         |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Antonia A. Wells     |   |                                                                | 50,00050,000      |         |                                                                 |   | ––50,000 |   |   |   | 2.506.33 |   | 05/04/201003/01/2012 | 05/03/201602/28/2018 |   |   | 117,250 |   |   |   | 417,410 |   |

----

| (1) | All options vest as to twenty five percent (25%) of the award on each of the first four anniversaries of the grant date. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (2) | Thirty three percent (33%) of the restricted stock of the original restricted stock award vested on November 5, 2014 (115,500 for each of Mr. Dearborn and Ms. Koenig, and 57,750 for each of Mr. Oreskovich, Mr. Tolle and Ms. Wells), thirty three percent (33%) of the restricted stock will vest on November 5, 2015, and the remaining thirty four percent (34%) of the restricted stock will vest on November 5, 2016. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Reflects the value as calculated using the closing market price of our Common Stock as of the last trading day in fiscal year 2014, December 31, 2014 ($3.56). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                 |   | Option Awards                                |                  |      | Stock Awards                      |   |
|----------------------|--------|----------------------------------------------|-----------------------|-----------|-----------------------------------|--------|
|                 |   | Number of Shares Acquired on Exercise (#)(1) |                  |      | Value Realized on Exercise ($)(2) |   |   | Number of Shares Acquired on Vesting (#) |   |   | Value Realized on Vesting ($)(3) |   |
|                 |   |                                              |                  |      |                                   |   |   |  |   |   |  |   |
| Justin C. Dearborn   |   |                                         | 400,000               | (4)  |                              |   | 555,116 |   |   |   | 115,500 |   |   |   | 346,500 |   |
|                 |   |                                         | 200,000               | (5)  |                              |   | 175,386 |   |   |   |   |   |   |   |   |   |
|                 |   |                                         |                  |      |                              |   |   |   |   |   |   |   |   |   |   |   |
| Nancy J. Koenig      |   |                                         | 200,000               | (6)  |                              |   | 292,454 |   |   |   | 115,500 |   |   |   | 346,500 |   |
|                 |   |                                         |                  |      |                              |   |   |   |   |   |   |   |   |   |   |   |
| Steven M. Oreskovich |   |                                         | 200,000               | (7)  |                              |   | 294,599 |   |   |   | 57,750 |   |   |   | 173,250 |   |
|                 |   |                                         |                  |      |                              |   |   |   |   |   |   |   |   |   |   |   |
| Steven F. Tolle      |   |                                         | ––– |      |                              |   | ––– |   |   |   | 57,750 |   |   |   | 173,250 |   |
|                 |   |                                         |                  |      |                              |   |   |   |   |   |   |   |   |   |   |   |
| Antonia A. Wells     |   |                                         | 150,000               | (8)  |                              |   | 226,624 |   |   |   | 57,750 |   |   |   | 173,250 |   |

----

| (1) | Represents the total number of stock options exercised during 2014 before the sale of option shares to cover the option exercise price, transaction costs and applicable taxes. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents “in the money” value of stock options at exercise calculated as: the difference between the market price at exercise and the exercise price, multiplied by the total number of options exercised. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents the market price at vesting multiplied by the total number of shares vested. |
|-----|-----------------------------------------------------------------------------------------|

| (4) | In connection with this stock option exercise, shares were sold to cover the payment of the exercise price and the applicable taxes due upon exercise with Mr. Dearborn retaining a total of 144,675 net gain shares. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | In connection with this stock option exercise, shares were sold to cover the payment of the exercise price and the applicable taxes due upon exercise with Mr. Dearborn retaining a total of 39,500 net gain shares. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | In connection with this stock option exercise, shares were sold to cover the payment of the exercise price and the applicable taxes due upon exercise with Ms. Koenig retaining a total of 85,000 net gain shares. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | In connection with this stock option exercise, shares were sold to cover the payment of the exercise price and the applicable taxes due upon exercise with Mr. Oreskovich retaining a total of 77,000 net gain shares. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | In connection with this stock option exercise, shares were sold to cover the payment of the exercise price and the applicable taxes due upon exercise with Ms. Wells retaining a total of 56,400 net gain shares. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                    |   | NO CHANGE IN CONTROL                       |    |   | UPON CHANGE IN CONTROL                 |   |
|-------------------------|--------|--------------------------------------------|---------|--------|----------------------------------------|--------|
| Name                    |   | Payments upon Termination without Cause($) |    |   | Payments upon Termination for Cause($) |   |   | Payments upon Death or Disability($) |   |   | Payments upon Termination without Cause($) |   |   | Payments upon Termination for Cause($) |   |   | Payments upon Death or Disability($) |   |
|                    |   |                                            |    |   |                                        |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Justin C. Dearborn(1)   |   |                                       | 400,000 |   |                                   |   | ––– |   |   |   | ––– |   |   |   | 400,000 |   |   |   | ––– |   |   |   | ––– |   |
|                    |   |                                       |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nancy J. Koenig(1)      |   |                                       | 305,000 |   |                                   |   | ––– |   |   |   | ––– |   |   |   | 305,000 |   |   |   | ––– |   |   |   | ––– |   |
|                    |   |                                       |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Steven M. Oreskovich(1) |   |                                       | 250,000 |   |                                   |   | ––– |   |   |   | ––– |   |   |   | 250,000 |   |   |   | ––– |   |   |   | ––– |   |
|                    |   |                                       |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Steven F. Tolle(2)      |   |                                       | 260,000 |   |                                   |   | ––– |   |   |   | ––– |   |   |   | 260,000 |   |   |   | ––– |   |   |   | ––– |   |
|                    |   |                                       |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Antonia A. Wells(1)(3)  |   |                                       | 189,640 |   |                                   |   | ––– |   |   |   | ––– |   |   |   | 189,640 |   |   |   | ––– |   |   |   | ––– |   |

----

| (1) | On July 3, 2008, we entered into letter agreements with Mr. Dearborn, Ms. Koenig, Mr. Oreskovich and Ms. Wells that provide for twelve (12) months’ base salary as severance upon a termination other than for cause and other than due to the executive officer’s death or disability, which cash severance will be payable over twelve (12) months, conditioned on their respective execution of a release agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | On November 1, 2012, we entered into an employment agreement with Mr. Tolle that provides for twelve (12) months’ base salary as severance upon a termination other than for cause and other than due to the executive officer’s death or disability, which cash severance will be payable over twelve (12) months, conditioned on his execution of a release agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Ms. Wells’ payment has been converted from CDN $220,000 to U. S. Dollars, based on the Bank of Canada Noon Spot Rate on December 31, 2014 (U.S. $1 = CDN $0.8620). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                  |   | Fees Earned or Paid in Cash($) |   |   | Stock Awards ($) |   |    | Total($) |   |
|-----------------------|--------|--------------------------------|--------|--------|------------------|--------|---------|----------|--------|
|                  |   |                                |   |   |                  |   |    |          |   |
| Dennis Brown          |   |                           | 21,750 |   |             |   | 135,000 |     |   |   | 156,750 |   |
|                  |   |                           |   |   |             |   |    |     |   |   |   |   |
| William J. Devers Jr. |   |                           | 17,250 |   |             |   | 110,000 |     |   |   | 127,250 |   |
|                  |   |                           |   |   |             |   |    |     |   |   |   |   |
| Matthew M. Maloney    |   |                           | 2,250  |   |             |   | 100,000 |     |   |   | 102,250 |   |
|                  |   |                           |   |   |             |   |    |     |   |   |   |   |
| Richard A. Reck       |   |                           | 19,500 |   |             |   | 110,000 |     |   |   | 129,500 |   |
|                  |   |                           |   |   |             |   |    |     |   |   |   |   |
| Neele Stearns, Jr.    |   |                           | 24,750 |   |             |   | 120,000 |     |   |   | 144,750 |   |

----

|                     |   | OPTION AWARDS(1)                            |           |      | STOCK AWARDS(3)                             |   |
|--------------------------|--------|---------------------------------------------|----------------|-----------|---------------------------------------------|--------|
| Name                     |   | Number of Securities Underlying Options (#) |           |      | Exercise Price of Option Awards ($ / Share) |   |   | Grant Date |   |   | Expiration Date |   |   | Aggregate Number of Securities Underlying Options (#) |   |   | Number of Shares orUnits of Stock That Have Not Vested (#)(4) |   |   | Market Value of Shares or Units of Stock That Have Not Vested ($)(4) |   |
| Dennis Brown             |   |                                        | 15,000         |      |                                        |   | 17.50 |   |   | 06/01/2005 |   |   | 06/01/2015 |   |   |   | 505,000 |   |   |   | 43,860 |   |   |   | 156,142 |   |
|                     |   |                                        | 15,000         |      |                                        |   | 6.59 |   |   | 12/28/2006 |   |   | 12/27/2016 |   |   |   |   |   |   |   | 7,676 |   |   |   | 27,327 |   |
|                     |   |                                        | 10,000         |      |                                        |   | 5.52 |   |   | 01/31/2007 |   |   | 01/30/2017 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                        | 15,000         |      |                                        |   | 6.01 |   |   | 05/11/2007 |   |   | 05/10/2017 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                        | 225,000        |      |                                        |   | 1.47 |   |   | 08/19/2008 |   |   | 08/18/2018 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                        | 225,000        | (2)  |                                        |   | 6.33 |   |   | 03/01/2012 |   |   | 02/28/2018 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                        |           |      |                                        |   |   |   |   |  |   |   |  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| William J. Devers Jr.    |   |                                        | 225,000        | (2)  |                                        |   | 2.49 |   |   | 02/21/2014 |   |   | 02/20/2020 |   |   |   | 225,000 |   |   |   | 43,860 |   |   |   | 156,142 |   |
|                     |   |                                        |           |      |                                        |   |   |   |   |  |   |   |  |   |   |   |   |   |   |   | 2,193 |   |   |   | 7,807 |   |
|                     |   |                                        |           |      |                                        |   |   |   |   |  |   |   |  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Michael W. Ferro, Jr.(5) |   |                                        | –– |      |                                        |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|                     |   |                                        |           |      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Matthew M. Maloney       |   |                                        | 225,000        | (2)  |                                        |   | 3.28 |   |   | 08/24/2012 |   |   | 08/23/2018 |   |   |   | 225,000 |   |   |   | 43,860 |   |   |   | 156,142 |   |
|                     |   |                                        |           |      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Richard A. Reck          |   |                                        | 15,000         |      |                                        |   | 17.50 |   |   | 06/01/2005 |   |   | 06/01/2015 |   |   |   | 495,000 |   |   |   | 43,860 |   |   |   | 156,142 |   |
|                     |   |                                        | 15,000         |      |                                        |   | 6.59 |   |   | 12/28/2006 |   |   | 12/27/2016 |   |   |   |   |   |   |   | 2,193 |   |   |   | 7,807 |   |
|                     |   |                                        | 15,000         |      |                                        |   | 6.01 |   |   | 05/11/2007 |   |   | 05/10/2017 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                        | 225,000        |      |                                        |   | 1.47 |   |   | 08/19/2008 |   |   | 08/18/2018 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                        | 225,000        | (2)  |                                        |   | 6.33 |   |   | 03/01/2012 |   |   | 02/28/2018 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                                        |           |      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Neele E. Stearns, Jr.    |   |                                        | 300,000        |      |                                        |   | 1.47 |   |   | 08/19/2008 |   |   | 08/18/2018 |   |   |   | 600,000 |   |   |   | 43,860 |   |   |   | 156,142 |   |
|                     |   |                                        | 300,000        | (2)  |                                        |   | 6.33 |   |   | 03/01/2012 |   |   | 02/28/2018 |   |   |   |   |   |   |   | 4,386 |   |   |   | 15,614 |   |

----

| (1)  | All options are fully vested and exercisable, with the exception of the options granted on March 1, 2012 with a February 28, 2018 expiration date, the options granted on August 24, 2012 with an August 23, 2018 expiration date, and the options granted on February 21, 2014 with an February 20, 2020 expiration date, which options vest and are exercisable as noted below. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | Options vest as to twenty five percent (25%) of the award on each of the first four anniversaries of the grant date. |
|-----------|---------------------------------------------------------------------------------------------------------------------------|

| (3)  | Based on the compensation plan for the non–employee Directors, as proposed by the Nominating and Governance Committee, developed in consultation with the Company’s compensation consultant, Frederic W. Cook & Co., effective following the annual meeting of the Board in June of 2014, non–employee Directors received (i) an annual participation award of $100,000 paid in restricted stock, with one (1) year cliff vesting, and (ii) annual chair retainers ($25,000 for the Chair of the Board, $20,000 for the Chair of the Audit Committee, and $10,000 for the Chairs of each of the Compensation, Executive and the Nominating and Governance Committees) paid in restricted stock, with quarterly vesting over a one (1) year period. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Reflects the value as calculated using the closing market price of our Common Stock as of the last trading day in fiscal year 2014, December 31, 2014 ($3.56). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Ferro has waived both the cash payments for meeting attendance and the annual equity award for his Board participation retainer and the Chairman of the Board retainer. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 12 | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT |
|---------|----------------------------------------------------------------|

| Name and Address of Beneficial Owner (1)                                                                                                                       |   | Shares Beneficially Owned(2) |           |      | Percentage of Total Outstanding |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|----------------|-----------|---------------------------------|--------|
| Michael W. Ferro, Jr.(3)                                                                                                                                       |   |                         | 26,431,298     |      |                            |   | 23.99 | % |
| Merrick Venture Management Holdings, LLC                                                                                                                       |   |                         | 21,105,857     |      |                            |   | 19.16 | % |
| Merrick Ventures, LLC                                                                                                                                          |   |                         | 4,925,441      |      |                            |   | 4.47 | % |
| Guggenheim Capital, LLC; Guggenheim Partners, LLC; Guggenheim Partners Investment Management Holdings, LLC; and Guggenheim Partners Investment Management, LLC |   |                         | 12,081,603     | (4)  |                            |   | 10.46 | % |
| Dennis Brown                                                                                                                                                   |   |                         | 919,888        |      |                            |   | ( | *) |
| Michael P. Cole                                                                                                                                                |   |                         | –– |      |                            |   | ( | *) |
| Justin C. Dearborn                                                                                                                                             |   |                         | 1,186,833      |      |                            |   | 1.08 | % |
| William J. Devers Jr.                                                                                                                                          |   |                         | 516,893        |      |                            |   | ( | *) |
| Nancy J. Koenig                                                                                                                                                |   |                         | 595,662        |      |                            |   | ( | *) |
| Matthew M. Maloney                                                                                                                                             |   |                         | 156,360        |      |                            |   | ( | *) |
| Steven M. Oreskovich                                                                                                                                           |   |                         | 590,879        |      |                            |   | ( | *) |
| Richard A. Reck                                                                                                                                                |   |                         | 746,634        |      |                            |   | ( | *) |
| Neele E. Stearns, Jr.                                                                                                                                          |   |                         | 799,242        |      |                            |   | ( | *) |
| Steven F. Tolle                                                                                                                                                |   |                         | 311,318        |      |                            |   | ( | *) |
| Antonia A. Wells                                                                                                                                               |   |                         | 343,399        |      |                            |   | ( | *) |
| All Directors and Executive Officers as a Group (12 persons)                                                                                                   |   |                         | 32,600,568     |      |                            |   | 29.59 | % |

| (*) | Less than 1% of outstanding Common Stock. |
|-----|-------------------------------------------|

----

| (1) | The business address of each beneficial owner who is also a Director or Executive Officer of Merge Healthcare is c/o Merge Healthcare Incorporated, 350 North Orleans Street, First Floor, Chicago, Illinois 60654, with the exception of Mr. Oreskovich whose business address is c/o Merge Healthcare Incorporated, 900 Walnut Ridge Drive, Hartland, Wisconsin 53029.  The business address for each of Michael W. Ferro, Jr., Merrick Ventures, LLC and Merrick Venture Management Holdings, LLC is 350 North Orleans Street, Tenth Floor, Chicago, Illinois 60654.  The business address of Guggenheim Capital, LLC and Guggenheim Partners Investment Management Holdings, LLC is 227 West Monroe, Suite 4900, Chicago, Illinois 60606; the business address of Guggenheim Partners, LLC is 135 East 57th Street, New York, New York 10222; and the business address of Guggenheim Partners Investment Management, LLC is 100 Wilshire Boulevard, Santa Monica, California 90401 (collectively, the “Guggenheim Entities”). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | Share amounts include the following numbers of shares of Common Stock which may be acquired upon the exercise of stock options which are currently exercisable or exercisable within sixty (60) days of April 20, 2015:  448,750 for Mr. Brown; 625,000 for Mr. Dearborn; 56,250 for Mr. Devers; 175,000 for Ms. Koenig; 112,500 for Mr. Maloney; 300,000 for Mr. Oreskovich; 438,750 for Mr. Reck; 525,000 for Mr. Stearns; 155,000 for Mr. Tolle, 125,000 for Ms. Wells, and 2,948,750 for all Directors and Executive Officers as a group. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Includes 21,105,857 shares held by Merrick Venture Management Holdings, LLC, of which Mr. Ferro is the Managing Member.  Also includes 4,925,441 shares held by Merrick Ventures, LLC, as reported on a Form 4 filed with the Commission on November 8, 2013, by Mr. Ferro.  Mr. Ferro and trusts for the benefit of Mr. Ferro’s family members beneficially own a majority of the equity interests in Merrick Holdings.  Mr. Ferro serves as the chairman and chief executive officer of each of Merrick Holdings and of Merrick Ventures.  Accordingly, Mr. Ferro indirectly controls all of the shares of Common Stock owned by Merrick Holdings and Merrick Ventures. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | Represents shares of Common Stock obtainable upon conversion of 50,000 shares of Series A Convertible Preferred Stock beneficially owned by the Guggenheim Entities as reported on Form 3, and includes an additional 4,103 shares of Common Stock beneficially owned by an indirect, wholly–owned subsidiary of Guggenheim Partners Investment Management Holdings, LLC as reported on Schedule 13D, each filed with the Commission on March 9, 2015 by the Guggenheim Entities. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                   |   | Number of securities to be issued upon exercise of outstanding options |           |      | Weighted–average exercise price of outstandingoptions |   |           | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) |   |
|--------------------------------------------------------|--------|------------------------------------------------------------------------|----------------|-----------|-------------------------------------------------------------|--------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                   |   |                                                                        |           |      |                                                             |   |           |                                                                                                                                                   |   |
| Equity compensation plans approved by stockholders     |   |                                                                   | 4,003,493      | (1)  |                                                        | $      | 3.61           |                                                                                                                                              |   |   | 3,597,603 | (2)  |
| Equity compensation plans not approved by stockholders |   |                                                                   | –– |      |                                                        |   | –– |                                                                                                                                              |   |   | –– |   |
| Total                                                  |   |                                                                   | 4,003,493      |      |                                                        | $      | 3.61           |                                                                                                                                              |   |   | 3,597,603 |   |

----

| (1) | Represents outstanding options to purchase the Company’s common stock. |
|-----|------------------------------------------------------------------------------|

| (2) | Represents options available to purchase the Company’s common stock under the 2005 Equity Incentive Plan. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

|  | • | A “related person” means any of our Directors, executive officers, nominees for director, holder of five percent (5%) or more of our Common Stock or any of their immediate family members; and |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | A “related person transaction” generally is a transaction (including any indebtedness or a guarantee of indebtedness) in which we were or are to be a participant and the amount involved exceeds $50,000, and in which a related person had or will have a direct or indirect material interest. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
|----------|----------------------------------------|

|                          |   | 2014   |           |   | 2013   |   |
|-------------------------------|--------|--------|----------------|--------|--------|--------|
| Audit fees (*)                |   | $      | 741,823        |   |   | $      | 781,075 |   |
| Audit–related fees (**) |   |   | 14,458         |   |   |   | 19,130 |   |
| Tax                           |   |   | –– |   |   |   | –– |   |
| All other fees                |   |   | –– |   |   |   | –– |   |
| Total fees                    |   | $      | 756,281        |   |   | $      | 800,205 |   |

----

|   | (*) | Audit fees include fees for the annual financial statement audit, quarterly reviews, registration statements, comfort letters, consents and review of, and assistance with, Current Reports on Form 8–K. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (**) | Audit–related fees include fees for assistance with proposed transactions. |
|--------|------|----------------------------------------------------------------------------------|

----

|  | • | Audit services include audit work performed on the financial statements and internal control over financial reporting, as well as work that generally only the independent registered public accounting firm can reasonably be expected to provide, including quarterly reviews, comfort letters, statutory audits, and discussions surrounding the proper application of financial accounting and/or reporting standards. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Audit–Related services are for assurance and related services that are traditionally performed by the independent registered public accounting firm, including due diligence related to mergers and acquisitions, employee benefit plan audits, and special procedures required to meet certain regulatory requirements. |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Tax services include all services, except those services specifically related to the audit of the financial statements, performed by the independent registered public accounting firm’s tax personnel, including tax analysis; assisting with coordination of execution of tax–related activities, primarily in the area of corporate development; supporting other tax–related regulatory requirements; and tax compliance and reporting.  The Company generally does not request such services from the independent registered public accounting firm. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | All Other services are those services not captured in the audit, audit–related or tax categories.  The Company generally does not request such services from the independent registered public accounting firm. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 1. | The Audit Committee has reviewed and discussed Merge Healthcare’s audited financial statements with management; |
|--|----|-----------------------------------------------------------------------------------------------------------------------|

|  | 2. | The Audit Committee has also received from, and discussed with, BDO USA, LLP, Merge Healthcare’s independent registered public accounting firm for fiscal year 2014, the matters required to be discussed by PCAOB Auditing Standard No. 16 (Communications with Audit Committee); |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | The Audit Committee has received the written disclosures and the letter from BDO USA, LLP required by the Public Company Accounting Oversight Board rule that relates to independence (Rule 3526), and has discussed with BDO USA, LLP, its independence as Merge Healthcare’s independent registered public accounting firm; and |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Based on the review and discussions referred to above, the Audit Committee recommended to our Board that the audited financial statements be included in Merge Healthcare’s Annual Report on Form 10–K for the year ended December 31, 2014, for filing with the Commission. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
|----------|--------------------------------------------|

----

| Exhibit |  | Description                                                                                                                                                                          |   | Incorporated Herein by Reference to                                                                                                                                               |  | Filed Herewith |
|---------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|----------------|
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 3.1     |  | Certificate of Incorporation of the Registrant as filed on October 14, 2008                                                                                                          |   | Exhibit  3.1 to the Annual Report on Form 10-K of Merge Healthcare Incorporated for the fiscal year ended December 31, 2008 (File No. 001-33006), as filed on March 11, 2009 |  |           |
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 3.2     |  | Amendment to the Certificate of Incorporation of the Registrant as filed on September 27, 2010                                                                                       |   | Exhibit  3.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated September 30, 2010 (File No. 001-33006), as filed on September 30, 2010                |  |           |
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 3.3     |  | Bylaws of Registrant                                                                                                                                                            |   | Exhibit  3.3 to the Annual Report on Form 10-K of Merge Healthcare Incorporated for the fiscal year ended December 31, 2008 (File No. 001-33006), as filed on March 11, 2009 |  |           |
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 10.1    |  | Registration Rights Agreement, dated June 4, 2008, by and between the Registrant and Merrick RIS, LLC                                                                           |   | Exhibit  10.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated June 6, 2008 (File No. 001-33006), as filed on June 6, 2008                           |  |           |
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 10.2    |  | Securities Purchase Agreement, dated May 21, 2008, by and among the Registrant, the subsidiaries listed on the Schedule of Subsidiaries attached thereto, and Merrick RIS, LLC  |   | Exhibit  10.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated May 22, 2008 (File No. 001-33006), as filed on May 22, 2008                           |  |           |
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 10.3    |  | Employment Letter Agreement between the Registrant and Justin C. Dearborn entered into as of June 4, 2008*                                                                           |   | Exhibit  10.19 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated July 15, 2008 (File No. 001-33006), as filed on July 15, 2008                        |  |           |
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 10.4    |  | Employment Letter Agreement between the Registrant and Steven M. Oreskovich entered into as of June 4, 2008 *                                                              |   | Exhibit  10.20 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated July 15, 2008 (File No. 001-33006), as filed on July 15, 2008                        |  |           |
|    |  |                                                                                                                                                                                 |   |                                                                                                                                                                              |  |           |
| 10.5    |  | Employment Letter Agreement between the Registrant and Nancy J. Koenig entered into as of June 4, 2008*                                                                              |   | Exhibit  10.21 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated July 15, 2008 (File No. 001-33006), as filed on July 15, 2008                   |  |           |

----

| 10.6   |  | Employment Letter Agreement between the Registrant and Antonia A. Wells entered into as of June 4, 2008*                                                                                          |   | Exhibit  10.22 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated July 15, 2008 (File No. 001-33006), as filed on July 15, 2008                      |  |   |
|--------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--------|
|   |  |                                                                                                                                                                                              |   |                                                                                                                                                                                 |  |   |
| 10.7   |  | Employment Letter Agreement between the Registrant and Steven Tolle entered into as of November 1, 2012*                                                                                          |   | Exhibit  10.1 to the Quarterly Report on Form 10-Q of Merge Healthcare Incorporated for the three months ended March 31, 2014 (File No. 001-33006), as filed on April 30, 2014  |  |   |
|   |  |                                                                                                                                                                                              |   |                                                                                                                                                                                 |  |   |
| 10.8   |  | First Amendment, dated July 1, 2008, to that certain Securities Purchase Agreement, dated as of May 21, 2008, by and among the Registrant, certain of its subsidiaries and Merrick RIS, LLC  |   | Exhibit  10.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated July 7, 2008  (File No. 001-33006), as filed on July 7, 2008                        |  |   |
|   |  |                                                                                                                                                                                              |   |                                                                                                                                                                                 |  |   |
| 10.9   |  | 1998 Stock Option Plan for Directors*                                                                                                                                                        |   | Exhibit  10.8 to the Annual Report on Form 10-KSB of Merge Healthcare Incorporated for the fiscal year ended December 31, 1997 (File No. 001-33006), as filed on May 5, 1998    |  |   |
|   |  |                                                                                                                                                                                              |   |                                                                                                                                                                                 |  |   |
| 10.10  |  | 2000 Employee Stock Purchase Plan of the Registrant effective July 1, 2000 (as amended through the first amendment thereto) *                                                                |   | Annex A to the Proxy Statement for Annual Meeting of Shareholders of Merge Healthcare Incorporated dated April 29, 2014 (File No. 001-33006), as filed on April 28, 2014             |  |   |
|   |  |                                                                                                                                                                                              |   |                                                                                                                                                                                 |  |   |
| 10.11  |  | 2005 Equity Incentive Plan (as amended through the fourth amendment thereto)*                                                                                                                |   | Annex A to the Proxy Statement for Annual Meeting of Shareholders of Merge Healthcare Incorporated dated April 30, 2013 (File No. 001-33006), as filed on April 30, 2013             |  |   |
|   |  |                                                                                                                                                                                              |   |                                                                                                                                                                                 |  |   |
| 10.12  |  | Form of stock option agreement*                                                                                                                                                                   |   | Exhibit  10.15 to the Annual Report on Form 10-K of Merge Healthcare Incorporated for the fiscal year ended December 31, 2005 (File No. 001-33006), as filed on August 30, 2006 |  |   |
|   |  |                                                                                                                                                                                              |   |                                                                                                                                                                                 |  |   |
| 10.13  |  | Form of Restricted Stock award*                                                                                                                                                                   |   | **                                                                                                                                                                                   |  |   |
|   |  |                                                                                                                                                                                                   |        |                                                                                                                                                                                      |  |        |
| 10.14  |  | Letter Agreement, dated May 17, 2013, between Merge Healthcare Incorporated and Ann Mayberry-French*                                                                                              |        | Exhibit  10.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated May 20, 2013 (File No. 001-33006), as filed on May 20, 2013                              |  |        |

----

| 10.15  |  | General Release, dated May 17, 2013, between Merge Healthcare Incorporated and Ann Mayberry-French*                                                                                                                                                                                                         |  | Exhibit  10.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated May 20, 2013 (File No. 001-33006), as filed on May 20, 2013                            |  |  |
|--------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
|   |  |                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                               |  |  |
| 10.16  |  | Letter Agreement, dated August 8, 2013, between Merge Healthcare Incorporated and Jeffery A. Surges*                                                                                                                                                                                                        |  | Exhibit  10.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated August 9, 2013 (File No. 001-33006), as filed on August 9, 2013                        |  |  |
|   |  |                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                               |  |  |
| 10.17  |  | General Release, dated August 8, 2013, between Merge Healthcare Incorporated and Jeffery A. Surges*                                                                                                                                                                                                         |  | Exhibit  10.2 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated August 9, 2013 (File No. 001-33006), as filed on August 9, 2013                        |  |  |
|   |  |                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                               |  |  |
| 10.18  |  | Credit Agreement, dated as of April 29, 2014, among Merge Healthcare Incorporated, as Borrower, the Subsidiary Guarantors party thereto, the Lenders party thereto from time to time and Guggenheim Corporate Funding, LLC, as Lead Arranger, Book Runner, Administrative Agent and Collateral Agent.  |  | Exhibit  10.1 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated May 5, 2014 (File No. 001-33006), as filed on May 5, 2014                              |  |  |
|   |  |                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                               |  |  |
| 10.19  |  | Security Agreement, dated as of April 29, 2014, among Merge Healthcare Incorporated, the subsidiaries of Merge Healthcare Incorporated party thereto and Guggenheim Corporate Funding, LLC, as Collateral Agent.                                                                                       |  | Exhibit  10.2 to the Current Report on Form 8-K of Merge Healthcare Incorporated dated May 5, 2014 (File No. 001-33006), as filed on May 5, 2014                              |  |  |
|   |  |                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                               |  |  |
| 10.20  |  | Form of Director Indemnification Agreement                                                                                                                                                                                                                                                                  |  | **                                                                                                                                                                                 |  |  |
|        |  |                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                    |  |  |
| 14.1   |  | Code of Ethics                                                                                                                                                                                                                                                                                         |  | Exhibit  14.1 to the Annual Report on Form 10-K of Merge Healthcare Incorporated for the fiscal year ended December 31, 2008 (File No. 001-33006), as filed on March 11, 2009 |  |  |
|   |  |                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                               |  |  |
| 14.2   |  | Whistleblower Policy                                                                                                                                                                                                                                                                                   |  | Exhibit  14.2 of the Annual Report on Form 10-K of Merge Healthcare Incorporated for the fiscal year ended December 31, 2008 (File No. 001-33006), as filed on March 11, 2009 |  |  |

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| 21     |  | List of Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                                                                                                                                |  | **     |   |   |
|--------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--------|--------|--------|
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 23.1   |  | Consent of Independent Registered Public Accounting Firm – BDO USA, LLP                                                                                                                                                                                                                                                                                                                                                         |  | **     |   |   |
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 24.1   |  | Power of Attorney                                                                                                                                                                                                                                                                                                                                                                                                                     |  | **     |   |   |
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 31.1   |  | Certificate of Chief Executive Officer (principal executive officer) Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                             |  | **     |   |   |
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 31.2   |  | Certificate of Chief Financial Officer (principal financial officer) Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                             |  | **     |   |   |
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 31.3   |  | Certificate of Chief Executive Officer (principal executive officer) Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                             |  |   |   | X      |
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 31.4   |  | Certificate of Chief Financial Officer (principal financial officer) Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                             |  |   |   | X      |
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 32     |  | Certificate of Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) Pursuant to Section 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                       |  | **     |   |   |
|   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |   |   |   |
| 101    |  | The following materials from the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014 formatted in Extensible Business Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Shareholders’ Equity, (iv) the consolidated Statements of Cash Flows, and (v) the Consolidated Statements of Comprehensive Loss |  | **     |   |   |

|   | * | Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Annual Report on Form 10-K/A. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------|

|   | ** | Filed with the Original Form 10-K.  |
|--------|----|------------------------------------------|

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|                      | Merge Healthcare Incorporated |                              |
|---------------------------|-------------------------------|------------------------------|
|                      |                               |                              |  |
| Date: April 30, 2015 | By:                           | /s/ Justin C. Dearborn  |  |
|                      |                          | Justin C. Dearborn           |  |
|                      |                          | Chief Executive Officer      |  |

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