Document:

EX-10.1

THIS ASSET PURCHASE AGREEMENT is made the 30th day of July, 2010

B E T W E E N:

Merge Healthcare Incorporated, a corporation governed by the laws of
Delaware

(the “Buyer”)

- and -

Merrick Healthcare Solutions, LLC., a limited liability company
governed by the laws of Indiana (dba Olivia Greets)

(the “Seller”)

RECITALS:

A. The Seller carries on the Business.

B. The Seller has agreed to sell to the Buyer and the Buyer has agreed to purchase from the Seller
substantially all of the assets of and relating to the Business, subject to the terms and
conditions of this Agreement.

THEREFORE the parties agree as follows:

ARTICLE 1

DEFINITIONS AND PRINCIPLES OF INTERPRETATION

1.1 Definitions

Whenever used in this Agreement the following words and terms have the meanings set out below:

“Accounts Payable” means amounts relating to the Business owing to any Person as of the
Closing Date, which are incurred in the ordinary course of business and in accordance with
the terms of this Agreement, to the extent reflected (if required to be so reflected) on the
Financial Statements (for the periods covered thereby);

“Accounts Receivable” means accounts receivable, bills receivable, trade accounts, book
debts and insurance claims relating to the Business, recorded as receivable in the Books and
Records and any other amount due or deemed to be due to the Seller relating to the Business
including but not limited to the items listed in Schedule 4.10(c) and any refunds and
rebates receivable relating to the Business or the Purchased Assets, and the benefit of all
security (including cash deposits), guarantees and other collateral held by the Seller
relating to the Business except for any of the foregoing which are Excluded Assets;

“Agreement” means this Asset Purchase Agreement, including all schedules, and all amendments
or restatements, as permitted, and references to “Article” or “Section” mean the specified
Article or Section of this Agreement;

“Assumed Liabilities” means the Accounts Payable set forth on Schedule 2.3 and the
obligations and liabilities arising on or after the Closing Date under the Customer and
Supplier Contracts;

“Books and Records” means books and records of the Seller relating to the Business or the
Purchased Assets, including financial, corporate, operations and sales books, records, books
of account, sales and purchase records, lists of suppliers and customers, formulae, business
reports, plans and projections and all other documents, surveys, plans, files, records,
assessments, correspondence, and other data and information, financial or otherwise,
including all data and information stored on computer-related or other electronic media;

“Business” means the development and distribution of the Olivia Greets System;

“Business Day” means any day except a Saturday, Sunday or any statutory holiday in the State
of Delaware;

“Claims” includes claims, demands, complaints, actions, suits, causes of action, assessments
or reassessments, charges, judgments, debts, liabilities, expenses, costs, damages or
losses, contingent or otherwise, including loss of value, professional fees, including
reasonable fees of legal counsel, and all costs incurred in investigating or pursuing any of
the foregoing or any proceeding relating to any of the foregoing;

“Closing” means the completion of the sale to and purchase by the Buyer of the Purchased
Assets under this Agreement;

“Closing Date” means the date on which this Agreement is executed and delivered by both of
the Parties or such other date (but not later than July 31, 2010) as the Parties may agree
as the date upon which the Closing shall take place;

“Contracts” means contracts, commitments, entitlements or engagements to which the Seller is
a party or by which the Seller is bound or under which the Seller has, or will have, any
liability or contingent liability relating to the Business or the Purchased Assets and
includes quotations, orders or tenders for any contract which remain open for acceptance and
warranties or guarantees (express or implied) and shareholder agreements and employment
agreements;

“Customer and Supplier Contracts” means the contracts specifically identified under the
heading “Customer and Supplier Contracts” on Schedule 4.18;

“Employees” means those individuals employed by the Seller, on a full-time, part-time or
temporary basis, relating to the Business, including those employees of the Business on
disability leave, parental leave or other absence;

“Encumbrances” means pledges, liens, charges, security interests, leases, title retention
agreements, mortgages, restrictions, development or similar agreements, easements,
rights-of-way, title defects, options or adverse claims or encumbrances of any kind or
character whatsoever;

“Environmental, Health and Safety Requirements” shall mean all federal, state, local and
foreign statutes, regulations, ordinances and similar provisions having the force or effect
of law, all judicial and administrative orders and determinations, and all common law
concerning public health and safety, worker health and safety and pollution or protection of
the environment, including without limitation all those relating to the presence, use,
production, generation, handling, transportation, treatment, storage, disposal,
distribution, labelling, testing, processing, discharge, release, threatened release,
control or cleanup of any hazardous materials, substances or wastes, chemical substances or
mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum products or
by-products, asbestos, polychlorinated biphenyls, noise or radiation;

“Excluded Assets” means

(a) Accounts Receivable from the Buyer that are greater than 30 days past due from the
invoice date;

(b) Prepaid Expenses Excluded;

(c) cash, bank accounts and bank balances, moneys in possession of banks and other
depositories, term or time deposits and similar cash items of, owned or held by or for
the account of the Seller;

(d) marketable shares, notes, bonds, debentures or other securities of or issued by
corporations or other Persons and not relating to the Business and all certificates or
other evidences of ownership thereof owned or held by or for the account of the Seller,
including but not limited to, all equity interests of Merrick Healthcare Solutions, LLC,
held by Merrick Ventures, LLC;

(e) corporate, financial, taxation and other records of the Seller not relating
exclusively or primarily to the Business and all books, records and other documents and
information required to be retained by the Seller under law;

(f) sales, excise or other licences or registrations issued to or held by the Seller,
whether in respect of the Business or otherwise;

(g) refunds in respect of reassessments for Taxes relating to the Business or Purchased
Assets paid prior to the Closing;

(h) refundable Taxes;

(i) amounts owing from any director, officer, former director or officer, shareholder or
employee of the Seller;

(j) all Contracts other than Customer and Supplier Contracts;

(k) any and all rights, benefits and privileges under or related to any employee benefit
plan of the Seller;

(l) all rights to tax refunds and all interest paid or payable with respect to such tax
refunds;

(m) all insurance policies and rights thereunder relating to the Business prior to the
Closing Date, including but not limited to, all rights with respect to any pending or
future claims and all rights to premium refunds on such insurance policies, and all
actions, causes of actions, claims, counterclaims, defenses and offsets (including,
without limitation, all insurance claims) pertaining in any way to any assets of the
Seller as may have arisen prior to the Closing Date;

(n) the certificate of incorporation of Seller, as amended and restated, and all rights
granted thereunder, including but not limited to, any right to mandatory conversion of
preferred stock, and

(o) all rights of the Seller under this Agreement;

“Financial Statements” means, collectively,

(a) the financial statements of the Seller for the fiscal year ended December 31, 2009
(unaudited) consisting of a balance sheet and income statement of the Seller; and

(b) the unaudited financial statements of the Seller, consisting of a balance sheet as
of June 30, 2010 and an income statement for the period commencing January 1, 2010 and
ending on June 30, 2010,

copies of which are attached as Schedule 4.6;

“GAAP” means United States generally accepted accounting principles as in effect from time
to time;

“Goodwill” means the goodwill of the Business and relating to the Purchased Assets, and
information and documents relevant thereto including lists of customer and suppliers,
research and development materials, and the exclusive right of the Buyer to represent itself
as carrying on the Business in succession to the Seller and to all rights in respect of the
name “Olivia Greets” and any variations of such name;

“Governmental Authority” means any government, regulatory authority, governmental
department, agency, commission, bureau, court, board, tribunal, dispute settlement panel or
body or other law, rule or regulation-making entity:

	 	(a)	 	having or purporting to have jurisdiction on behalf of any nation,
state or other geographic or political subdivision thereof; or

	 	(b)	 	exercising, or entitled or purporting to exercise any administrative,
executive, judicial, legislative, policy, regulatory or taxing authority or power;

“Governmental Authorizations” means authorizations, approvals, including any environmental
approvals, orders, certificates, consents, directives, notices, licences, permits,
variances, registrations or similar rights issued to or required by the Seller relating to
the Business or any of the Purchased Assets by or from any Governmental Authority;

“Intellectual Property” means any intellectual property and all rights therein and thereto
owned by the Seller or used in carrying on the Business, including without limitation (a)
all inventions (whether patentable or un-patentable and whether or not reduced to practice),
all improvements thereto, and all patents, patent applications and patent disclosures,
together with all re-issuances, continuations, continuations-in-part, revisions, extensions
and re-examinations thereof, (b) all trademarks, service marks, trade dress, logos, trade
names, corporate names (including the name “Olivia Greets”), and domain names, together with
all translations, adaptations, derivations and combinations thereof and including all
goodwill associated therewith, and all applications, registrations and renewals in
connection therewith, (c) all works of authorship and other copyrightable works, including
the Olivia Greets Software and all other software, databases, and similar products, all
copyrights and all applications, registrations and renewals in connection therewith, (d) all
mask works and all applications, registrations and renewals in connection therewith, (e) all
trade secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production processes and
techniques, technical data, designs, drawings, specifications, customer and supplier lists,
pricing and cost information and business and marketing plans and proposals), and (f) all
copies and tangible embodiments thereof (in whatever form or medium);

“Inventories” means inventories of every kind and nature and wheresoever situated of the
Seller relating to the Business, including inventories of raw materials, work-in-progress,
finished goods and by-products, spare parts, operating supplies and packaging materials of
or relating to the Business;

“Laws” means applicable laws (including common law), statutes, by-laws, rules, regulations,
orders, ordinances, protocols, codes, guidelines, treaties, policies, notices, directions,
decrees, judgments, awards or requirements, in each case, of any Governmental Authority;

“Material Contract” means any Contract to which the Seller is a party or under which the
Seller has any rights or obligations, other than a Contract made in the ordinary course of
the Business under which the Seller has a financial obligation of less than $10,000 per
annum and which can be terminated by the Seller without the Seller being required to pay any
damages, penalty or other amount by giving not more than 30 days notice;

“Notice” has the meaning given in Section 8.3;

“Olivia Greets Software” means the Seller’s proprietary software, including the kiosk
software, licensed avatar platform, Olivia Greets System, distributed call center Software,
and other related systems.

“Olivia Greets System” means the Seller’s proprietary Olivia Greets kiosk offerings and
related Intellectual Property;

“Parties” means the Seller and the Buyer collectively, and “Party” means any one of them;

“Permitted Encumbrances” means the Encumbrances listed on Schedule 0(a);

“Person” means any individual, sole proprietorship, partnership, firm, entity,
unincorporated association, unincorporated syndicate, unincorporated organization, trust,
body corporate, Governmental Authority, and where the context requires any of the foregoing
when they are acting as trustee, executor, administrator or other legal representative;

“Personal Information” means any information in the possession of the Seller about an
identifiable individual, but does not include the name, title or business address or
telephone number of an Employee;

“Prepaid Expenses” means all amounts prepaid including taxes, business taxes, rents,
telephone, insurance and all deposits with any public utility or any Governmental Authority,
but excluding income or other taxes which are personal to the Seller;

“Prepaid Expenses Excluded” means Prepaid Expenses other than Prepaid Expenses Purchased;

“Prepaid Expenses Purchased” means Prepaid Expenses relating to the Olivia Greets Software
and Tangible Assets;

“Purchase Price” has the meaning given in Section 3.1;

“Purchased Assets” means all of the Seller’s right, title and interest in, to and under, or
relating to, the assets, property and undertaking, owned or used or held by Seller for use
in, or relating to the operation of, the Business, including the following properties,
assets and rights:

(a) the Inventories;

(b) the Books and Records;

(c) the benefit of all Customer and Supplier Contracts;

(d) any sales tools and data to manage prospective customers and by which pricing is
determined for such prospective contracts

(e) the Tangible Assets;

(f) the Intellectual Property (including all trademarks, copyrights, and patents);

(g) the Goodwill;

(h) the Accounts Receivables;

(i) the Prepaid Expenses Purchased;

(j) the Olivia Greets Software;

(k) the Governmental Authorizations; and

(l) all other rights, properties and assets of the Seller used in or held by the Seller
or its Affiliates for use in or relating to the operation of the Business, of
whatsoever nature or kind and wherever situated;

other than the Excluded Assets;

“Tangible Assets” means all tangibles assets, including computer hardware, equipment,
fixtures, furniture, furnishings, vehicles, owned or used or held by the Seller relating to
the Business, and other tangible property and facilities used in the Business whether
located in or on the premises of the Seller or elsewhere;

“Tax Returns” includes all returns, reports, declarations, elections, notices, filings,
forms, statements and other documents (whether in tangible, electronic or other form) and
including any amendments, schedules, attachments, supplements, appendices and exhibits
thereto, made, prepared, filed or required to be made, prepared or filed by Laws in respect
of Taxes; and

“Taxes” includes any taxes, duties, fees, premiums, assessments, imposts, levies and other
charges of any kind whatsoever imposed by any Governmental Authority, including all
interest, penalties, fines, additions to tax or other additional amounts imposed by any
Governmental Authority in respect thereof, and including those levied on, or measured by, or
referred to as, income, gross receipts, profits, capital, transfer, land transfer, sales,
goods and services, harmonized sales, use, value-added, excise, stamp, withholding,
business, franchising, property, development, occupancy, employer health, payroll,
employment, health, social services, education and social security taxes, all surtaxes, all
customs duties and import and export taxes, countervail and anti-dumping, all licence,
franchise and registration fees and all employment insurance, health insurance and
government pension plan premiums or contributions.

1.2 Certain Rules of Interpretation

In this Agreement:

(a) Consent - Whenever a provision of this Agreement requires an approval or consent
and such approval or consent is not delivered within the applicable time limit,
then, unless otherwise specified, the Party whose consent or approval is required
shall be conclusively deemed to have withheld its approval or consent.

(b) Currency - Unless otherwise specified, all references to money amounts are to
United States dollars.

(c) Governing Law – This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Delaware without giving effect to any choice
or conflict of law provision or rule (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other
than the State of Delaware. The Parties hereby irrevocably consent to the
jurisdiction of the courts of the State of Delaware or to the federal courts sitting
in Delaware.

(d) Headings - Headings of Articles and Sections are inserted for convenience of
reference only and shall not affect the construction or interpretation of this
Agreement.

(e) Including - Where the word “including” or “includes” is used in this Agreement,
it means “including (or includes) without limitation”.

(f) No Strict Construction – The language used in this Agreement is the language
chosen by the Parties to express their mutual intent, and no rule of strict
construction shall be applied against any Party.

(g) Number and Gender – Unless the context otherwise requires, words importing the
singular include the plural and vice versa and words importing gender include all
genders.

(h) Severability – If, in any jurisdiction, any provision of this Agreement or its
application to any Party or circumstance is restricted, prohibited or unenforceable,
such provision shall, as to such jurisdiction, be ineffective only to the extent of
such restriction, prohibition or unenforceability without invalidating the remaining
provisions of this Agreement and without affecting the validity or enforceability of
such provision in any other jurisdiction or without affecting its application to
other Parties or circumstances.

(i) Statutory references – A reference to a statute includes all regulations made
pursuant to such statute and, unless otherwise specified, the provisions of any
statute or regulation which amends, supplements or supersedes any such statute or
any such regulation.

(j) Time - Time is of the essence in the performance of the Parties’ respective
obligations.

(k) Time Periods - Unless otherwise specified, time periods within or following
which any payment is to be made or act is to be done shall be calculated by
excluding the day on which the period commences and including the day on which the
period ends and by extending the period to the next Business Day following if the
last day of the period is not a Business Day.

1.3 Knowledge

Any reference to the knowledge of any Party shall mean to the best of the knowledge, information
and belief of such Party after reviewing all relevant records and making due inquiries regarding
the relevant matter of all relevant officers, directors and employees of such Party and, in the
case of the knowledge of the Seller, the relevant senior managers of the Business.

1.4 Entire Agreement

This Agreement and the agreements and other documents required to be delivered pursuant to this
Agreement, constitute the entire agreement between the Parties and set out all the covenants,
promises, warranties, representations, conditions, understandings and agreements between the
Parties relating to the subject matter of this Agreement and supersede all prior agreements,
understandings, negotiations and discussions, whether oral or written. There are no covenants,
promises, warranties, representations, conditions, understandings or other agreements, oral or
written, express, implied or collateral between the Parties in connection with the subject matter
of this Agreement except as specifically set forth in this Agreement and any document required to
be delivered pursuant to this Agreement.

1.5 Schedules

The schedules to this Agreement, as listed below, are an integral part of this Agreement:

	 	 	 
	Schedule	 	Description
	Schedule 2.3

	 	Assumed Liabilities
	Schedule 3.2

	 	Allocation of Purchase Price
	Schedule 4.6

	 	Financial Statements
	Schedule 4.7

	 	Exclusions from Absence of Undisclosed Liabilities
	Schedule 0(a)

	 	Permitted Encumbrances
	Schedule 4.10(b)

	 	Tangible Assets
	Schedule 4.10(c)

	 	Unbilled and AR Schedule
	Schedule 4.13

	 	Government Authorizations
	Schedule 4.17

	 	Employment Matters
	Schedule 4.18

	 	Material Contracts
	Schedule 4.19

	 	Litigation
	Schedule 4.21(a)

Schedule 4.21(i)

	 	Intellectual Property

Olivia Greets Software Third Party Expenses And Royalties
	Schedule 4.21(j)

	 	Open Source Software

ARTICLE 2

PURCHASE AND SALE

2.1 Purchase and Sale of Purchased Assets

Subject to the provisions of this Agreement, the Seller hereby sells, transfers and assigns to the
Buyer, and the Buyer hereby purchases and accepts assignment of the Purchased Assets, in
consideration of the Purchase Price.

2.2 Transfer and Delivery of Purchased Assets

The Seller hereby agrees to deliver to the Buyer all such bills of sale, assignments, instruments
of transfer, consents and other documents as are necessary or desirable to effectively transfer to
the Buyer the Purchased Assets and hereby delivers up to the Buyer possession of the Purchased
Assets, free and clear of all Encumbrances (other than Permitted Encumbrances).

2.3 Assumed Liabilities

On Closing, the Buyer shall assume and become responsible for all of the Assumed Liabilities.
Except for the Assumed Liabilities, the Buyer does not assume and is not responsible for any of the
liabilities, debts or obligations of the Seller, whether present or future, absolute or contingent
and whether or not relating to the Business including, without limitation,

	 	(a)	 	any Accounts Payable except as specifically set forth on Schedule 2.3;

	 	(b)	 	any liabilities for Taxes payable by the Seller and all liabilities for Taxes
which relate to any period prior to the Closing Date;

	 	(c)	 	any liabilities for salary, bonus, vacation pay and other compensation and all
liabilities under any and all employee benefit plans of the Seller relating to
employment of persons in the Business prior to the Closing Date;

	 	(d)	 	any severance payments, damages for wrongful dismissal and all related costs in
respect of the termination by the Seller of the employment of any Employee who does not
accept or is deemed not to have accepted the Buyer’s offer of continuing employment
made pursuant to Section 6.5;

	 	(e)	 	any obligations under any Contracts other than the Customer and Supplier
Contracts;

2.4 Assignment of Contracts

Nothing in this Agreement shall be construed as an assignment of, or an attempt to assign to the
Buyer, any Customer and Supplier Contract or Governmental Authorization which, as a matter of law
or by its terms, is (i) not assignable, or (ii) not assignable without the approval or consent of
the issuer thereof or the other party or parties thereto, unless such approval or consent has been
obtained (collectively “Non-Assignable Rights”). In connection with such Non-Assignable Rights, the
Seller shall, at the request of the Buyer:

(a) co-operate with the Buyer in any reasonable arrangements designed to provide the
benefits of such Non-Assignable Rights to the Buyer, including holding any such
Non-Assignable Rights in trust for the Buyer or acting as agent for the Buyer;

(b) enforce any rights of the Seller arising from such Non-Assignable Rights against
the issuer thereof or the other party or parties thereto;

(c) take all such actions and do, or cause to be done, all such things at the
request of the Buyer as shall reasonably be necessary in order that the value of any
Non-Assignable Rights shall be preserved and shall enure to the benefit of the
Buyer; and

(d) pay over to the Buyer, all monies collected by or paid to the Seller in respect
of such Non-Assignable Rights.

If the Seller is unable to lawfully provide the benefit of any Governmental Authorization to the
Buyer, it shall not, at any time, use such Governmental Authorization for its own purposes or
assign or provide the benefit of such Governmental Authorization to any other party.

ARTICLE 3

PURCHASE PRICE

3.1 Purchase Price

The Buyer shall assume the Assumed Liabilities and shall issue to the Seller, on Closing, 500,000
common shares in the capital of the Buyer (the “Purchase Price”). The shares to be issued by the
Buyer to the Seller shall be subject to a lock-up period of twelve (12) months commencing from the
Closing Date, except that the Seller may transfer to its investors the shares constituting the
Purchase Price, provided that the lockup period shall continue to apply to such investors.

3.2 Allocation of Purchase Price

The Parties agree to allocate the Purchase Price among the Purchased Assets for all purposes
(including financial accounting and tax purposes) in accordance with the provisions of Schedule
3.2. The Parties agree to take no position inconsistent with such allocation on any tax return or
in any proceeding before any Governmental Authority or otherwise, to prepare and file their
respective Tax Returns in a manner consistent with the elections agreed to herein, and in the event
that any allocation or election is disputed by any Governmental Authority, the Party receiving
notice of the dispute shall promptly notify the other Parties and shall consult with them prior to
making any resolution of the dispute. The Parties will each timely file a Form 8594 with the IRS
in accordance with the requirements of Section 1060 of the Code.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE SELLER

The Seller represents and warrants to the Buyer the matters set out below. No investigations made
by or on behalf of the Buyer at any time shall have the effect of waiving, diminishing the scope of
or otherwise affecting any representation or warranty made by the Seller in or pursuant to this
Agreement.

4.1 Incorporation and Corporate Power

The Seller is a corporation validly existing under the laws of Indiana and has all necessary
corporate power, authority and capacity to enter into this Agreement, to carry out its obligations
under this Agreement, to own its assets and to carry on the Business as presently conducted.

4.2 Subsidiaries

The Seller does not own, or have any interest in, any shares of any corporation which carries on,
in whole or in part, the Business or any business similar to, competitive with or ancillary to the
Business.

4.3 Due Authorization and Enforceability of Obligations

The execution and delivery of this Agreement and the consummation of the transactions contemplated
by this Agreement have been duly authorized by all necessary corporate action on the part of the
Seller. This Agreement constitutes a valid and binding obligation of the Seller enforceable against
it in accordance with its terms.

4.4 Absence of Conflicting Agreements

Except for those Customer and Supplier Contracts and Governmental Authorizations which require
consent to their assignment or transfer, the Seller is not a party to, bound or affected by or
subject to any:

(a) indenture, mortgage, lease, agreement, obligation or instrument;

(b) charter or by-law; or

(c) Laws or Governmental Authorizations;

that as of the Closing Date would be violated, breached by, or under which default would occur or
an Encumbrance would, or with notice or the passage of time would, be created as a result of the
execution and delivery of, or the performance of obligations under, this Agreement or any other
agreement to be entered into under the terms of this Agreement.

4.5 Regulatory Approvals

No approval, order, consent of or filing with any Governmental Authority is required on the part of
the Seller, in connection with the execution, delivery and performance of this Agreement or any
other documents and agreements to be delivered under this Agreement or the performance of the
Seller’s obligations under this Agreement or any other documents and agreements to be delivered
under this Agreement.

4.6 Financial Statements

The Financial Statements will be provided no later than five business days after Closing Date and

(a) have been prepared in accordance with GAAP applied on a basis consistent with
those of preceding fiscal periods, except for audit adjustments and the omission of
such information as would otherwise be contained in notes to such financial
statements;

(b) present fully, fairly and correctly in all material respects the assets,
liabilities and financial condition of the Seller as at their respective dates and
the results of its operations and the changes in its financial position for the
period(s) then ended;

(c) are in accordance with the Books and Records;

(d) contain and reflect all necessary adjustments for a fair presentation in all
material respects of the results of operations and the financial condition of the
Business for the period(s) covered thereby; and

(e) contain and reflect adequate provision or allowance for all reasonably
anticipated liabilities, expenses and losses of a material nature of the Seller
relating to the Purchased Assets and the Business.

4.7 Absence of Undisclosed Liabilities

The Seller has not incurred any liabilities or obligations (whether accrued, absolute, contingent
or otherwise), which continue to be outstanding, except as disclosed in the Financial Statements or
except as forming part of the Assumed Liabilities, which as of the Closing Date would constitute an
Encumbrance on or liability arising from or related to the Purchased Assets. Without limiting the
generality of the foregoing, except as disclosed in Schedule 4.7, the Seller (i) has no outstanding
credits due to customers or other third parties, (ii) has not received any advance payment for
services not completed, and (iii) has no orders outstanding to any suppliers for which it does not
have a corresponding order and payment outstanding from a customer. The Accounts Payable forming
part of the Assumed Liabilities have all been incurred within the 30 days immediately prior to the
Closing Date.

4.8 Absence of Changes and Unusual Transactions

Since June 30, 2009

(a) there has not been any material change in the financial condition, operations,
working capital, assets or prospects of the Business or the Purchased Assets other
than changes in the ordinary course of business, none of which, individually or in
the aggregate, has been materially adverse;

(b) there has not been any damage, destruction or loss, or labour dispute,
organizing drive, application for certification or other event, development or
condition of any character (whether or not covered by insurance) materially and
adversely affecting the business, assets, properties or future prospects of the
Business;

(c) there has not been any material change in the level of Inventories.

(d) the Seller has not transferred, assigned, sold or otherwise disposed of any of
the assets shown or reflected in the Financial Statements or cancelled any debts or
entitlements except, in each case, in the ordinary course of business;

(e) the Seller has not discharged or satisfied any Encumbrance, or paid any
obligation or liability (fixed or contingent) relating to the Business, other than
liabilities included in the Financial Statements and liabilities incurred since the
date of the Financial Statements in the ordinary course of business;

(f) the Seller has not suffered any extraordinary loss, waived or omitted to take
any action in respect of any rights, or entered into any commitment or transaction
not in the ordinary course of business where such loss, rights, commitment or
transaction is or would be material in relation to the Purchased Assets or the
Business;

(g) the Seller has not granted any bonuses, whether monetary or otherwise, or made
any general wage or salary increases in respect of Employees, or changed the terms
of employment for any Employee or entered into a written contract with any Employee
except in the ordinary course of business and consistent with past practice;

(h) the Seller has not, relating to the Business, hired or dismissed any senior
employees;

(i) the Seller has not, except as disclosed as a Permitted Encumbrance, created or
permitted to exist any Encumbrance affecting as of the Closing Date the Seller’s
title to any of the Purchased Assets, whether tangible or intangible, or the
Business;

(j) the Seller has not changed the manner of billing of, or the credit lines made
available to, any customers of the Business;

(k) the Seller has not granted any license or sublicense of any rights under or with
respect to any Intellectual Property other than in the ordinary course of business;
and

(l) the Seller has not authorized, agreed or otherwise become committed to do any of
the foregoing.

4.9 Non-Arm’s Length Transactions

No director or officer, former director or officer, shareholder or Employee of, or any other Person
not dealing at arm’s length with, the Seller is engaged in any transaction or arrangement with or
is a party to a Contract with, or has any indebtedness, liability or obligation to, the Seller
relating to the Business or the Purchased Assets except for employment arrangements with Employees,
a shared services agreement for HR, IT, Legal and Accounting services with Merrick Ventures, and
working capital advances from Merrick Ventures, LLC

4.10 Title to and Location of Assets.

Except as identified elsewhere in this Agreement, the Seller is the sole legal and beneficial owner
and (where its interests are registered) the sole registered owner of the Purchased Assets with
good and valid title, free and clear (as of the Closing Date) of all Encumbrances other than
Permitted Encumbrances and is exclusively entitled to possess and dispose of same (subject only, in
the case of Contracts or Governmental Authorizations, to the necessity of obtaining consents to
their assignment). Without limiting the generality of the foregoing, the Seller is the sole legal
and beneficial owner of the Accounts Receivable, including any customer accounts where products
and/or services have been sold but not billed. There has been no assignment, subletting or
granting of any licence (of occupation or otherwise) of or in respect of any of the Purchased
Assets or any granting of any agreement or right capable of becoming an agreement or option for the
purchase of any of the Purchased Assets other than pursuant to the provisions of, or as disclosed
in, this Agreement or pursuant to purchase orders accepted by the Seller in the ordinary course of
business. Schedule 4.10(b) sets forth a complete list of the Tangible Assets.

4.11 Sufficiency of Assets

The Purchased Assets constitute all of the assets, of any nature whatsoever, necessary to operate
the Business in the manner presently operated by the Seller.

4.12 Business in Compliance with Law

The operations of the Business have been and are now conducted in compliance with all Laws of each
jurisdiction in which the Business has been and is carried on and the Seller has not received any
notice of any alleged violation of any such Laws.

4.13 Governmental Authorizations

Schedule 4.13 sets forth a complete list of the Governmental Authorizations. The Governmental
Authorizations listed in Schedule 4.13 are all the authorizations required by the Seller to enable
it to carry on the Business in compliance with all Laws. The Governmental Authorizations are in
full force and effect in accordance with their terms, and there have been no violations of such
Governmental Authorizations, no proceedings are pending or, to the knowledge of the Seller,
threatened, which could result in their revocation or limitation and all steps have been taken and
filings made on a timely basis with respect to each Governmental Authorization and its renewal.

4.14 Restrictive Covenants

The Seller is not a party to or bound or affected by any agreement, arrangement, undertaking or
other understanding (whether written or oral):

(a) limiting the freedom of the Seller to compete in any line of business or any
geographic area, acquire goods or services from any supplier, establish the prices
at which it may sell any goods or services, sell goods or services to any customer
or potential customer, or transfer or move any of its assets or operations; or

(b) which materially and adversely affects the business practices, operations or
financial condition of the Business or the continued operation of the Business after
the Closing as currently carried on.

4.15 Real Property

The Seller does not own (and has never owned) or lease and has not agreed to acquire or lease any
real property or interest in real property.

4.16 Environmental, Health and Safety Matters.

(a) The Seller is in compliance with all Environmental, Health and Safety
Requirements.

(b) The Seller has not received any written notice, report or other information
regarding any actual or alleged violation of Environmental, Health and Safety
Requirements, or any liabilities or potential liabilities (whether accrued,
absolute, contingent, unliquidated or otherwise), including any investigatory,
remedial or corrective obligations, relating to the Seller or its facilities arising
under Environmental, Health and Safety Requirements.

4.17 Employment Matters

(a) The Seller has provided the Buyer with a complete list of the Employees,
together with all relevant information including their titles, service dates and
material terms of employment. Except as disclosed in Schedule 4.17, no Employee is
on short-term or long-term disability leave, parental leave, extended absence.

(b) Except as disclosed in Schedule 4.17, the Seller is not bound by any Contracts
of employment which are not terminable on the giving of reasonable notice in
accordance with applicable law, nor are there any management agreements, retention
bonuses or Contracts providing for cash or other compensation or benefits upon the
consummation of the transactions contemplated by this Agreement.

(c) Except as disclosed in Schedule 4.17, the Seller is not a party to, or bound by,
nor does the Seller have any liability or contingent liability with respect to any
employment policies or benefit or pension plans, whether written or unwritten,
funded or unfunded, or formal or informal.

(d) The Seller is not a party to or bound by any collective bargaining agreement,
nor has it experienced any strike or grievance, claim of unfair labor practices or
other collective bargaining dispute within the past three years. The Seller has no
knowledge of any organizational effort presently being made or threatened by or on
behalf of any labor union with respect to employees of the Seller.

4.18 Material Contracts

Schedule 4.18 sets forth a complete list of the Material Contracts (including those relating to the
Customer and Supplier Contracts and Employees), and current and complete copies of all Material
Contracts have been delivered or made available to the Buyer. The Material Contracts are all in
full force and effect unamended since the date of any amendment thus provided and there are no
outstanding defaults or violations under such Material Contracts on the part of the Seller or, to
the knowledge of the Seller, on the part of any other party to such Material Contracts and there
are no current or pending negotiations with respect to the renewal, repudiation or amendment of any
Material Contract. Except as specified in Schedule 4.18, the Customer and Supplier Agreements may
be assigned by Seller to Buyer without written consent from or notice to any third party. Through
the Business and the Purchased Assets, the Seller has the capacity, including the necessary
personnel, equipment and supplies, to perform all its obligations under the Material Contracts.

4.19 Litigation

Except as disclosed in Schedule 4.19, there are no Claims, investigations, grievances or
proceedings, including appeals and applications for review, in progress, or, to the knowledge of
the Seller, pending or threatened against or relating to the Seller which, if determined adversely
to the Seller, would,

(a) materially and adversely affect the properties, business, future prospects or
financial condition in the hands of the Buyer of the Business or the Purchased
Assets,

(b) enjoin, restrict or prohibit the transfer of all or any part of the Purchased
Assets as contemplated by this Agreement, or

(c) prevent the Seller from fulfilling any of its obligations set out in this
Agreement or arising from this Agreement,

and the Seller has no knowledge of any existing ground on which any such action, suit, litigation
or proceeding might be commenced with any reasonable likelihood of success. Except as disclosed in
Schedule 4.19, there is no judgment, decree, injunction, rule or order of any Governmental
Authority or arbitrator outstanding against the Seller.

4.20 Tax Matters

(a) The Seller has filed all Tax Returns that it was required to file. All such Tax
Returns were correct and complete. All Taxes owed by the Seller (whether or not
shown on any Tax Return) have been paid. The Seller is not currently the
beneficiary of any extension of time within which to file any Tax Return.

(b) There is no dispute or claim concerning any Tax liability of the Seller either
(i) claimed or raised by any authority in writing or (ii) as to which the Seller has
knowledge.

(c) The Seller has delivered to the Buyer correct and complete copies of all federal
Tax Returns, examination reports and statements of deficiencies assessed against or
agreed to by the Seller since 2008. The Seller has not waived any statute of
limitations in respect of Taxes or agreed to any extension of time with respect to a
Tax assessment or deficiency.

(d) All Taxes of the Seller which would be delinquent if not paid prior to the
Closing Date have been or will be duly and properly computed, reported, fully paid
and discharged.

(e) There are no tax liens against any of the Purchased Assets. There are no unpaid
Taxes with respect to any period ending on or before the Closing Date which are or
could become a lien on the Purchased Assets, except for Taxes not yet due and
payable.

(f) No action is pending by any Governmental Authority in a jurisdiction in which
the Seller does not file a Tax Return to the effect that the Seller is or may be
subject to taxation in that jurisdiction.

(g) The Seller is not a party to any contract, agreement, plan or arrangement
relating to the allocating or sharing of, or liability for, Taxes with respect to
any period.

(h) Seller has withheld and paid all Taxes required to have been withheld and paid
in connection with amounts paid or owing to any Employee, independent contractor,
creditor, stockholder, or other third party.

(i)

4.21 Intellectual Property

(a) Schedule 4.21(a) sets forth a complete list and a brief description of all
Intellectual Property which has been registered, or for which applications for
registration have been filed, by or on behalf of the Seller in any jurisdiction.

(b) True and complete copies of all Contracts and Encumbrances relating to the
Intellectual Property, excluding licenses for “off the shelf” computer software that
is readily available in the marketplace, have been provided to the Purchaser and
such Contracts and Encumbrances are in full force and effect and no default exists
on the part of the Seller or, to the knowledge of the Seller, on the part of the
other parties to such Contracts and Encumbrances.

(c) The Seller is using or holding any of the Intellectual Property of which it is
not the sole beneficial owner with the consent of or a licence from the owner of
such Intellectual Property, all of which such consents or licences are in full force
and effect. True and complete copies of such licences and consents have been
provided to the Buyer and no default under such licences and consents exists on the
part of the Seller or, to the knowledge of the Seller, on the part of any of the
other parties to such licences and consents.

(d) All of the Intellectual Property is in full force and effect and has not been
used or enforced or failed to be used or enforced in a manner that would result in
its abandonment, cancellation or unenforceability;

(e)

(i) there are no legal proceedings in progress or pending or, to the
knowledge of the Seller, threatened against the Seller relating to the
Intellectual Property; and

(ii) the carrying on of the Business and the use, possession, reproduction,
distribution, sale, licensing, sublicensing or other dealings involving any
of the Intellectual Property in connection with such business does not
breach, violate, infringe or interfere with any rights of any other Person.

(f)

(i) there are no legal proceedings by the Seller relating to breaches,
violations, infringements or interferences with any of the Intellectual
Property by any other Person and the Seller has no knowledge of any facts
upon which such a legal proceeding by the Seller could be based; and

(ii) to the Seller’s knowledge, no other Person is using any of the
Intellectual Property so as to breach, violate, infringe or interfere with
the rights of the Seller.

(g) The Olivia Greets Software:

(i) is free from known material defects or deficiencies; and

(ii) does not contain any disabling mechanisms or protection features which
are designed to disrupt or prevent the use of the Olivia Greets Software,
including computer viruses, time locks or any code, instruction or device
that may be used without authority to access, modify, delete or damage any
of the Olivia Greets Software.

(h) The Intellectual Property does not include any intellectual property in respect
of which any of the Seller’s current or former officers, Employees or consultants
have any rights. All of the Intellectual Property developed by the Seller’s current
and former officers, Employees and consultants has been validly assigned to the
Seller free and clear of any rights of or claims by such officers, Employees and
consultants.

(i) Except as disclosed in Schedule 4.21(i), there are no third party costs payable
in respect of the Olivia Greets Software.

(j) Except as disclosed in Schedule 4.21(j), the Intellectual Property does not
incorporate any software that is or contains any software that is licensed pursuant
to an “open source” licensing agreement or similar agreement.

4.22 Books and Records

All Books and Records have been delivered or made available to the Buyer. Such Books and Records
fairly and correctly set out and disclose in all material respects the financial position of the
Business and all material financial transactions relating to the Business have been accurately
recorded in such Books and Records.

4.23 Personal Information

(a) The Seller, to the extent required by Law, has a written privacy policy which
governs its collection, use and disclosure of Personal Information and which
complies with the industry privacy codes applicable to the Business, and the Seller
is in compliance in all material respects with such privacy policy.

(b) All Personal Information provided to the Buyer, and the manner in which such
Personal Information has been obtained and provided to the Buyer, in connection with
the purchase and sale of the Business and the Purchased Assets, complies with all
Laws and with the Seller’s written privacy policy, and all required consents to the
collection or use of Personal Information or to the disclosure of Personal
Information to the Buyer or any other Person have been obtained.

4.24 No Broker

The Seller has carried on all negotiations relating to this Agreement and the transactions
contemplated in this Agreement directly and without intervention on its behalf of any other party
in such manner as to give rise to any valid claim for a brokerage commission, finder’s fee or other
like payment against the Buyer.

4.25 Customers

The Seller has not received any notice from any customer, and the Seller has no knowledge that any
customer will cease to do business with the Buyer, or will materially decrease the volume or value
of its business historically done with the Seller after (whether or not as a result of) the
consummation of the transactions contemplated hereby, or is threatened with bankruptcy or
insolvency.

4.26 Full Disclosure

The Seller has made available to the Buyer, all information, including Personal Information and the
financial, marketing, sales and operational information on a historical basis relating to the
Business, which would be material to a Buyer of the Business. All such information which has been
provided to the Buyer is true and correct in all material respects and no material fact or facts
have been omitted from that information which would make such information misleading. Without
limiting the generality of the foregoing, the Seller has not failed to disclose to the Buyer, any
fact or information which would be material to a Buyer of the Business or the Purchased Assets.

4.27 Survival

Representations and warranties contained in this Article shall survive as follows:

(a) The representations and warranties set out in Sections 4.1 and 4.3 of this
Agreement shall survive indefinitely.

(b) Representations and warranties relating to or impacted by tax matters arising in
or in respect of a particular period ending on, before or including the Closing Date
shall survive for a period of 90 days after the relevant authorities shall no longer
be entitled to assess liability against the Seller or the Buyer for that particular
period, having regard, without limitation, to any waivers given by the Seller in
respect of any taxation year.

(c) All other representations and warranties shall survive for a period of 12 months
from the Closing Date.

If no claim shall have been made under this Agreement against the Seller for any incorrectness in
or breach of any representation or warranty made in this Agreement prior to the expiry of these
survival periods, the Seller shall have no further liability under this Agreement with respect to
such representation or warranty. Notwithstanding the limitations set out in this Section 4.27 any
Claim which is based on intentional misrepresentation or fraud may be brought at any time.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF THE BUYER

	 	 	 	 	 
	The Buyer hereby represents and warrants to the Seller the matters set out below.
	 	5.1	 	 	Incorporation

	 	 	 	 	 
	The Buyer is a corporation validly existing under the laws of Delaware.
	 	5.2	 	 	Due Authorization and Enforceability of Obligations

The Buyer has all necessary corporate power, authority and capacity to enter into this Agreement
and to carry out its obligations under this Agreement. The execution and delivery of this Agreement
and the consummation of the transactions contemplated by this Agreement have been duly authorized
by all necessary corporate action of the Buyer. This Agreement constitutes a valid and binding
obligation of the Buyer enforceable against it in accordance with its terms.

5.3 Absence of Conflicting Agreements

The Buyer is not a party to, bound or affected by or subject to any:

(a) indenture, mortgage, lease, agreement, obligation or instrument;

(b) charter or by-law provision; or

(c) Laws or Governmental Authorizations;

that would be violated, breached by, or under which any default would occur or an Encumbrance
would, or with notice or the passage of time would, be created as a result of the execution and
delivery of, or the performance of obligations under, this Agreement or any other agreement to be
entered into under the terms of this Agreement.

5.4 No Broker

The Buyer has carried on all negotiations relating to this Agreement and the transactions
contemplated in this Agreement directly and without the intervention on its behalf of any other
party in such manner as to give rise to any valid claim for a brokerage commission, finder’s fee or
other like payment against the Seller.

5.5 Survival

Representations and warranties contained in this Article shall survive for a period of 12 months
from the Closing Date. If no claim shall have been made under this Agreement against the Buyer for
any incorrectness in or breach of any representation or warranty made in this Agreement prior to
the expiry of this survival period, the Buyer shall have no further liability under this Agreement
with respect to such representation or warranty. Notwithstanding the limitations set out in this
Section 5.5, any claim which is based on intentional misrepresentation or fraud may be brought at
any time.

ARTICLE 6

COVENANTS OF THE PARTIES

6.1 General

In case at any time after the Closing any further action is necessary to carry out the purposes of
this Agreement, each of the Parties will take such further action (including the execution and
delivery of such further instruments and documents) as any other Party reasonably may request, all
at the sole cost and expense of the requesting Party (unless the requesting Party is entitled to
indemnification therefor in accordance with this Agreement). The Seller acknowledges and agrees
that from and after the Closing the Buyer will be entitled to possession of all documents, books,
records (including Tax records), agreements and financial data of any sort relating to the
Business, other than copies of Tax records related to the Seller’s own tax returns and copies of
other files retained for archival purposes.

6.2 Transition

The Seller will take no action that is designed or intended to have the effect of discouraging any
lessor, licensor, customer, supplier or other business associate of the Seller from maintaining the
same business relationships with the Buyer after the Closing as it maintained with the Seller prior
to the Closing.

6.3 Confidentiality

The Seller shall keep confidential all Personal Information it disclosed to the Buyer and all
information relating to the Business, except information (other than Personal Information) which:

(a) is part of the public domain;

(b) becomes part of the public domain other than as a result of a breach of these
provisions by the Seller;

(c) was received in good faith after Closing from an independent Person who was
lawfully in possession of such information free of any obligation of confidence; or

(d) is released from the provisions of this Agreement by the written authorization
of the Buyer.

6.4 Change Seller’s Name

Forthwith following the completion of the purchase and sale of the Purchased Assets under this
Agreement, the Seller shall discontinue use of the name “Olivia Greets”, except where legally
required to identify the Seller until its name has been changed to another name.

6.5 Employees

(a) The Buyer shall, at its discretion, offer employment, effective from the Closing
Date, to certain of the Employees actively engaged in the Business on the Closing.
The Seller and the Buyer shall exercise reasonable efforts to persuade such
Employees to accept such offers of employment.

(b) The Seller shall be responsible for all amounts owing to the Employees in
respect of all periods prior to the Closing Date.

(c) The Seller shall be responsible for all notice of termination, severance and
other obligations including entitlement to benefit coverage, stock options or
incentive compensation to the Employees who do not accept employment with the Buyer
and the Seller shall indemnify and save harmless the Buyer in respect of all such
obligations.

6.6 Sales and Use Taxes

	 	(a)	 	The Seller shall bear the cost of any sales or use or other transfer Taxes
(excluding business and occupation taxes) and other fees, and any similar Taxes and
fees which become payable in connection with the consummation of the transactions
contemplated by this Agreement (“Sales Taxes”). Seller shall pay all real estate
excise taxes, if any, and shall properly report and pay its state business and
occupation taxes, if any, and federal and state income taxes arising out of the
transaction contemplated herein.

	 	(b)	 	Buyer will prepare the Tax Returns with respect to the Sales Taxes. The
Parties will cooperate with each other in the preparation of such returns, including
relating to any applicable exemption. If a resale certificate, resale purchase
exemption certificate, production machinery and equipment exemption certificate or
other certificate or document of exemption is required to reduce or eliminate the Sales
Taxes, the Parties will promptly cooperate with each to furnish such certificate or
document, and Seller will cooperate with Buyer to allow Buyer to obtain such reduction
or exemption from the Sales Taxes.

ARTICLE 7

INDEMNIFICATION

7.1 Indemnification by the Seller

(a) The Seller shall indemnify and save harmless the Buyer, its affiliated
companies, and each of their respective directors, officers, agents, employees and
shareholders (in this section collectively referred to as the “Indemnified
Parties”), from and against all Claims which may be made or brought against the
Indemnified Parties, or which they may suffer or incur, directly or indirectly as a
result of or in connection with:

(i) any non-fulfilment of any covenant or agreement on the part of the
Seller under this Agreement;

(ii) any incorrectness in or breach of any representation or warranty of the
Seller contained in this Agreement or in any certificate or other document
furnished by the Seller pursuant to this Agreement; or

(iii) any liabilities, debt and obligations of the Seller not forming part
of the Assumed Liabilities.

(b) The obligation of indemnification set out in Section 7.1(a) above shall be
subject to the limitation contained in Section 4.27 respecting the survival of the
representations and warranties. In addition, except for instances of fraud or
wilful misrepresentation, Indemnified Parties shall make no claims, nor shall they
be entitled to any indemnification hereunder, unless and until such claims aggregate
at least $10,000. Upon the aggregate of such claims exceeding $10,000 the Seller
shall be required to pay the amount owing in respect of all of such claims including
the $10,000.

7.2 Indemnification by the Buyer

(a) The Buyer shall indemnify and save harmless the Seller, its directors, officers,
employees, agents and shareholders (in this section collectively referred to as the
“Indemnified Parties”), from and against all Claims which may be made or brought
against the Indemnified Parties, or which they may suffer or incur, directly or
indirectly as a result of or in connection with:

(i) any non-fulfilment of any covenant or agreement on the part of the Buyer
under this Agreement;

(ii) any incorrectness in or breach of any representation or warranty of the
Buyer contained in this Agreement or in any certificate or other document
furnished by the Buyer pursuant to this Agreement.

(b) The obligation of indemnification set out in Section 7.2(a) above shall be
subject to the limitation contained in Section 5.5 respecting the survival of the
representations and warranties. In addition, except for instances of fraud or
wilful misrepresentation, Indemnified Parties shall make no claims, nor shall they
be entitled to any indemnification hereunder, unless and until such claims aggregate
at least $10,000. Upon the aggregate of such claims exceeding $10,000 the Buyer
shall be required to pay the amount owing in respect of all of such claims including
the $10,000.

7.3 Indemnification Procedures for Third Party Claims

(a) In the case of Claims made by a third party with respect to which
indemnification is sought, the Party seeking indemnification (in this Section, the
“Indemnified Party”) shall give prompt notice, and in any event within 20 days, to
the other Party (in this Section, the “Indemnifying Party”) of any such Claims made
upon it. If the Indemnified Party fails to give such notice, such failure shall not
preclude the Indemnified Party from obtaining such indemnification but its right to
indemnification may be reduced to the extent that such delay prejudiced the defence
of the Claim or increased the amount of liability or cost of defence and provided
that no claim for indemnity in respect of the breach of any representation or
warranty contained in this Agreement may be made unless notice of such Claim has
been given prior to the expiry of the survival period applicable to such
representation and warranty pursuant to Section 4.27 or Section 5.5, as the case may
be.

(b) The Indemnifying Party shall have the right, by notice to the Indemnified Party
given not later than 30 days after receipt of the notice described in Section
7.3(a), to assume the control of the defence, compromise or settlement of the Claim,
provided that such assumption shall, by its terms, be without cost to the
Indemnified Party and provided the Indemnifying Party acknowledges in writing its
obligation to indemnify the Indemnified Party in accordance with the terms contained
in this Section in respect of that Claim.

(c) Upon the assumption of control of any Claim by the Indemnifying Party as set out
in Section 7.3(b), the Indemnifying Party shall diligently proceed with the defence,
compromise or settlement of the Claim at its sole expense, including, if necessary,
employment of counsel reasonably satisfactory to the Indemnified Party and, in
connection therewith, the Indemnified Party shall cooperate fully, but at the
expense of the Indemnifying Party with respect to any out-of-pocket expenses
incurred, to make available to the Indemnifying Party all pertinent information and
witnesses under the Indemnified Party’s control, make such assignments and take such
other steps as in the opinion of counsel for the Indemnifying Party are reasonably
necessary to enable the Indemnifying Party to conduct such defence. The Indemnified
Party shall also have the right to participate in the negotiation, settlement or
defence of any Claim at its own expense.

(d) The final determination of any Claim pursuant to this Section, including all
related costs and expenses, shall be binding and conclusive upon the Parties as to
the validity or invalidity, as the case may be of such Claim against the
Indemnifying Party.

(e) If the Indemnifying Party does not assume control of a Claim as permitted in
Section 7.3(b), the Indemnified Party shall be entitled to make such settlement of
the Claim as in its sole discretion may appear advisable, and such settlement or any
other final determination of the Claim shall be binding upon the Indemnifying Party.

ARTICLE 8

GENERAL

8.1 Public Notices

The Parties shall jointly plan and co-ordinate any public notices, press releases, and any other
publicity concerning the transactions contemplated by this Agreement and no Party shall act in this
regard without the prior approval of the other, such approval not to be unreasonably withheld,
unless such disclosure is required to meet timely disclosure obligations of any Party under
applicable Laws or stock exchange rules in circumstances where prior consultation with the other
Party is not practicable and a copy of such disclosure is provided to the other.

8.2 Expenses

Except as otherwise provided in this Agreement each Party shall pay all costs and expenses
(including the fees and disbursements of legal counsel and other advisers) it incurs in connection
with the negotiation, preparation and execution of this Agreement and the transactions contemplated
by this Agreement.

8.3 Notices

Any notice, consent or approval required or permitted to be given in connection with this Agreement
(in this Section referred to as a “Notice”) shall be in writing and shall be sufficiently given if
delivered (whether in person, by courier service or other personal method of delivery):

(a) in the case of a Notice to the Seller at:

	 	 	 
	Merrick Healthcare Solutions (or new name as advised)

	233 N. Michigan Ave. Suite 2330 

	Chicago, IL 60601

Attention:Managing Director

Fax:

	 	

+1 312 994-9495

(b) in the case of a Notice to the Buyer at:

Merge Healthcare Incorporated.

900 Walnut Ridge Drive

Hartland, WI

53029-8347

Attention: General Counsel

Fax: (262) 367-0717

Any Notice delivered or transmitted to a Party as provided above shall be deemed to have been given
and received on the day it is delivered or transmitted, provided that it is delivered or
transmitted on a Business Day prior to 5:00 p.m. local time in the place of delivery or receipt.
However, if the Notice is delivered or transmitted after 5:00 p.m. local time or if such day is not
a Business Day then the Notice shall be deemed to have been given and received on the next Business
Day.

Any Party may, from time to time, change its address by giving Notice to the other Parties in
accordance with the provisions of this Section.

8.4 Assignment

Neither Party may assign this Agreement or any rights or obligations under this Agreement without
the prior written consent of the other Party.

8.5 Enurement

This Agreement shall enure to the benefit of and be binding upon the Parties and their respective
successors (including any successor by reason of amalgamation of any Party) and permitted assigns.

8.6 Amendment

No amendment, supplement, modification or waiver or termination of this Agreement and, unless
otherwise specified, no consent or approval by any Party, shall be binding unless executed in
writing by the Party to be bound thereby.

8.7 Further Assurances

The Parties shall, with reasonable diligence, do all such things and provide all such reasonable
assurances as may be required to consummate the transactions contemplated by this Agreement, and
each Party shall provide such further documents or instruments required by any other Party as may
be reasonably necessary or desirable to effect the purpose of this Agreement and carry out its
provisions, whether before or after the Closing.

8.8 Execution and Delivery

This Agreement may be executed by the Parties in counterparts and may be executed and delivered by
facsimile and all such counterparts and facsimiles shall together constitute one and the same
agreement.

[Signature lines are on the following page.]

1

IN WITNESS OF WHICH the Parties have executed this Agreement.

	 	 	 
	MERRICK HEALTHCARE SOLUTIONS, LLC
	Per:
	 	

	 	 	Name: Jeffrey Bennett

	 	 	Title: Board Member

	 	 	 
	MERGE HEALTHCARE INCORPORATED
	Per:
	 	

	 	 	Name:

	 	 	Title:

	 

2exhibit101.htm

 

Exhibit 10.1

 

Name of Grantee:                                           __________________________

 

Number of Shares:                                        Incentive   N/A       Nonqualified    3,000   

 

 

STOCK OPTION AGREEMENT

 

STOCK OPTION AGREEMENT dated as of the Grant Date (as hereafter defined), by and between Cabela’s Incorporated, a Delaware corporation (the "Company"), and the undersigned non-employee director of the Company (the "Grantee").

 

WITNESSETH:

 

WHEREAS, to motivate key employees, consultants and non-employee directors of the Company and the Subsidiaries by providing them an ownership interest in the Company, the Board of Directors of the Company (the "Board") has established and the stockholders of the Company have approved, the Cabela’s Incorporated 2004 Stock Plan, as the same may be amended from time to time (the "Plan"); and

 

WHEREAS, pursuant to Section 5.6 of the Plan, the Grantee has been granted non-qualified stock options to purchase Three Thousand (3,000) shares of Common Stock (each, a "Share" and, collectively, the "Shares") at the exercise price per Share set forth in Section 2; and

 

WHEREAS, the Grantee and the Company desire to enter into an agreement to evidence and confirm the grant of such stock options on the terms and conditions set forth herein.

 

NOW, THEREFORE, to evidence the stock options so granted, and to set forth the terms and conditions governing such stock options, the Company and the Grantee hereby agree as follows:

 

1.           Certain Definitions.  Capitalized terms used herein without definition shall have the meanings set forth in the Plan.  As used in this Agreement, the following terms shall have the following meanings:

 

a.           "Aggregate Exercise Price" shall have the meaning set forth in Section 6 hereof.

 

b.           "Alternative Option" shall have the meaning set forth in Section 7(c) hereof.

 

c.           “Committee” means the Compensation Committee of the Board.

 

d.           "Exercise Date" shall have the meaning set forth in Section 6 hereof.

 

e.           "Exercise Price" shall have the meaning set forth in Section 2(b).

 

f.           "Exercise Shares" shall have the meaning set forth in Section 6 hereof.

 

 

  

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g.           "Grant Date" shall mean [     ].

 

h.           "Grantee" shall have the meaning set forth in the introductory paragraph hereto.

 

i.           "Normal Expiration Date" shall mean the eighth anniversary of the Grant Date.

 

j.           "Option" shall mean the right granted to the Grantee hereunder to purchase one share of Common Stock for a purchase price equal to the Exercise Price and otherwise subject to the terms and conditions of this Agreement.

 

k.           "Securities Act" shall mean the U.S. Securities Act of 1933, as amended.

 

l.           "Share" or "Shares" shall have the meaning specified in the preambles hereto.

 

2.           Grant of Options.

 

a.           Confirmation of Grant.  The Company hereby evidences and confirms its grant to the Grantee, effective as of the Grant Date, of Options to purchase Three Thousand (3,000) Shares.  The Options are not intended to be incentive stock options under the U.S. Internal Revenue Code of 1986, as amended.  This Agreement is subordinate to, and the terms and conditions of the Options granted hereunder are subject to, the terms and conditions of the Plan, which are incorporated by reference herein.  If there is any inconsistency between the terms hereof and the terms of the Plan, the terms of the Plan shall govern.  The Grantee hereby acknowledges that a copy of the Plan has been made available to the Grantee.

 

b.           Exercise Price.  Each Share covered by an Option shall have an exercise price equal to [     ] (the “Exercise Price").

 

3.           Exercisability.

 

a.           Options.  Except as otherwise provided in Section 7(a) of this Agreement, the Options shall be exercisable with respect to one hundred percent (100%) of the Shares on the first anniversary of the Grant Date.

 

b.           Conditions.  Shares covered by vested Options may, subject to the provisions hereof, be purchased at any time and from time to time on or after the date the corresponding Options become vested in accordance with the provisions of this Section 3 until the date one day prior to the date on which such Options terminate.

 

4.           Termination of Options.

 

a.           Normal Expiration Date.  Subject to Sections 4 and 7, the Options shall terminate and be canceled on the Normal Expiration Date.

 

b.           Early Termination.  Except as provided in Section 7, if the Grantee ceases to be a member of the Board for any reason, the Grantee may exercise any Options that are exercisable on the date the Grantee ceases to be a member of the Board until the Normal Expiration Date.  Any Options that are not then exercisable shall be forfeited and canceled as of the date the Grantee ceases to be a member of the Board.

 

 

  

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5.           Restrictions on Exercise; Non-Transferability of Options.

 

a.           Restrictions on Exercise.  Once vested in accordance with the provisions of this Agreement, the Options may be exercised only with respect to full shares of Common Stock.  No fractional shares of Common Stock shall be issued.  Notwithstanding any other provision of this Agreement, the Options may not be exercised in whole or in part, and no certificates representing Shares shall be delivered, (i) unless all requisite approvals and consents of any governmental authority of any kind having jurisdiction over the exercise of the Options shall have been secured, and (ii) unless Section 5(c) shall have been satisfied.

 

b.           Non-Transferability of Options.  Except as provided in the Plan, the Options may be exercised only by the Grantee or, following his death, by the Grantee's estate.  Except as provided in the Plan, the Options are not assignable or transferable, in whole or in part, and may not, directly or indirectly, be offered, transferred, sold, pledged, assigned, alienated, hypothecated or otherwise disposed of or encumbered (including, without limitation, by gift, operation of law or otherwise) other than by will or by the laws of descent and distribution to the estate of the Grantee upon the Grantee's death, provided that the deceased Grantee's beneficiary or the representative of the Grantee's estate shall acknowledge and agree in writing, in a form reasonably acceptable to the Company, to be bound by the provisions of this Agreement and the Plan as if such beneficiary or the estate were the Grantee.

 

c.           Withholding.  Whenever Shares are to be issued pursuant to the Options, the Company may require the recipient of the Shares to remit to the Company an amount in cash sufficient to satisfy the statutory minimum U.S. federal, state and local and non-U.S. tax withholding requirements as a condition to the issuance of such Shares.  In the event any cash is paid to the Grantee or the Grantee's estate or beneficiary pursuant to Section 7 hereof or any provision of the Plan, the Company shall have the right to withhold an amount from such payment sufficient to satisfy the statutory minimum U.S. federal, state and local and non-U.S. tax withholding requirements.  The Committee may, in its discretion, require or permit the Grantee to elect, subject to such conditions as the Committee shall impose, to meet such obligations by having the Company withhold the number of Shares having a Fair Market Value sufficient to satisfy all or part of the Grantee's estimated total statutory minimum U.S. federal, state, and local and non-U.S. tax obligation with respect to the issuance of Shares upon exercise of Options.

 

6.           Manner of Exercise.  To the extent that any outstanding Options shall have become and remain vested and exercisable as provided in Sections 3 and 4 and subject to such reasonable administrative regulations as the Committee may have adopted, such Options may be exercised, in whole or in part, by notice to the designated officer of the Company (or designated third party administrator, if any) in writing given at least 5 business days (or shorter period permitted by any third party administrator) prior to the date as of which the Grantee will so exercise the Options (the "Exercise Date"), specifying the number of whole Shares with respect to which the Options are being exercised (the "Exercise Shares") and the aggregate Exercise Price for such Exercise Shares.  On or before the Exercise Date, the Grantee (i) shall deliver to the Company full payment for the Exercise Shares in United States dollars in cash, or cash equivalents satisfactory to the Company, and in an amount equal to the product of the number of Exercise Shares multiplied by the Exercise Price (such product, the "Aggregate Exercise Price") and (ii) the Company shall deliver to the Grantee a certificate or certificates representing the Exercise Shares and registered in the name of the Grantee.  In lieu of tendering cash, the Grantee may tender shares of Common Stock that have been owned by the Grantee for at least six months having an aggregate Fair Market Value on the Exercise Date equal to the Aggregate Exercise Price or may deliver a combination of cash and such shares of Common Stock having an aggregate Fair Market Value equal to the difference between the Aggregate Exercise Price and the amount of such cash as payment of the Aggregate Exercise Price, subject to such rules and regulations as may be adopted by the Committee to provide for the compliance of such payment procedure with applicable law, including Section 16(b) of the Exchange Act.  The Company may require the Grantee to furnish or execute such other documents as the Company shall reasonably deem necessary (i) to evidence such exercise and (ii) to comply with or satisfy the requirements of the Securities Act, applicable state or non-U.S. securities laws or any other law.

 

 

  

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7.           Change in Control.

 

a.           Options.  Subject to Section 7(c), in the event of a Change in Control, all of the Options outstanding immediately prior to the consummation of the transaction constituting the Change in Control (regardless of whether such Options are at such time otherwise vested or exercisable) shall become exercisable or, at the discretion of the Committee, any or all of such Options shall be canceled in exchange for a payment in accordance with Section 7(b) of an amount equal to the product of (i) the Change in Control Price over the Exercise Price, multiplied by (ii) the aggregate number of Shares covered by all such Options immediately prior to the Change in Control.

 

b.           Timing of Option Cancelation Payments.  Payment of the amount calculated in accordance with Section 7(a) shall be made in cash or, if determined by the Committee (as constituted immediately prior to the Change in Control), in shares of the common stock of the New Employer having an aggregate fair market value equal to such amount and shall be payable in full, as soon as reasonably practicable, but in no event later than 30 days, following the Change in Control.  For purposes hereof, the fair market value of a share of common stock of the New Employer shall be determined by the Committee (as constituted immediately prior to the Change in Control), in good faith.

 

c.           Alternative Options.  Notwithstanding Sections 7(a) and 7(b), no cancellation, termination, acceleration of exercisability or vesting or settlement or other payment shall occur with respect to any Option if the Committee (as constituted immediately prior to the consummation of the transaction constituting the Change in Control) reasonably determines, in good faith, prior to the Change in Control that the Options shall be honored or assumed, or new rights substituted therefor (such honored, assumed or substituted Option being hereinafter referred to as an "Alternative Option") by the New Employer, provided that any Alternative Options must:

 

i.           be based on shares of voting capital stock that are traded on an established U.S. securities market;

 

ii.           provide the Grantee with rights and entitlements substantially equivalent to or better than the rights and entitlements applicable under the terms of the Options immediately prior to the consummation of the transaction constituting the Change in Control, including, but not limited to, an identical or better exercise and vesting schedule and identical or better timing and methods of payment;

 

 

  

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iii.           have substantially equivalent economic value to the Options (determined at the time of the Change in Control); and

 

iv.           have terms and conditions which provide that in the event that the Grantee suffers an involuntary termination within two years following the Change in Control any conditions on the Grantee's rights under, or any restrictions on transfer or exercisability applicable to, each such Alternative Option shall be waived or shall lapse, as the case may be.

 

8.           No Rights as Stockholder.  The Grantee shall have no voting or other rights as a stockholder of the Company with respect to any Shares covered by the Options until the exercise of the Options and the issuance of a certificate or certificates to the Grantee for such Shares.  No adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of such certificate or certificates.

 

9.           Capital Adjustments.  Subject to the terms of the Plan, in the event of any Adjustment Event affecting the Common Stock such that an adjustment is required to preserve or to prevent enlargement of the benefits or potential benefits made available to the Grantee under the Plan or this Agreement, then the Committee shall, in such manner as the Committee shall deem equitable, adjust any or all of the number of shares of Common Stock covered by the Options and the grant, exercise or conversion price with respect to such Options.  In addition, the Committee may make provision for a cash payment to the Grantee.  The number of shares of Common Stock subject to any Option shall be rounded to the nearest whole number.

 

10.           Miscellaneous.

 

a.           Notices.  All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given if delivered personally or sent by certified or express mail, return receipt requested, postage prepaid, or by any recognized international equivalent of such delivery, to the Company or the Grantee, as the case may be, at the following addresses or to such other address as the Company or the Grantee, as the case may be, shall specify by notice to the others:

 

i.           if to the Company, to:

 

Cabela's Incorporated

One Cabela Drive

Sidney, NE  69160

Attention:  Legal Department

ii.           if to the Grantee, to the Grantee at the address then appearing in the corporate records of the Company for the Grantee.  All such notices and communications shall be deemed to have been received on the date of delivery if delivered personally or on the third business day after the mailing thereof, provided that the party giving such notice or communication shall have attempted to telephone the party or parties to which notice is being given during regular business hours on or before the day such notice or communication is being sent, to advise such party or parties that such notice is being sent.

 

 

  

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b.           Binding Effect; Benefits.  This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns.  Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.

 

c.           Waiver; Amendment.

 

i.           Waiver.  Any party hereto or beneficiary hereof may by written notice to the other parties (A) extend the time for the performance of any of the obligations or other actions of the other parties under this Agreement, (B) waive compliance with any of the conditions or covenants of the other parties contained in this Agreement and (C) waive or modify performance of any of the obligations of the other parties under this Agreement.  Except as provided in the preceding sentence, no action taken pursuant to this Agreement, including, without limitation, any investigation by or on behalf of any party or beneficiary, shall be deemed to constitute a waiver by the party or beneficiary taking such action of compliance with any representations, warranties, covenants or agreements contained herein.  The waiver by any party hereto or beneficiary hereof of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by a party or beneficiary to exercise any right or privilege hereunder shall be deemed a waiver of such party's or beneficiary's rights or privileges hereunder or shall be deemed a waiver of such party's or beneficiary's rights to exercise the same at any subsequent time or times hereunder.

 

ii.           Amendment.  This Agreement may not be amended, modified or supplemented orally, but only by a written instrument executed by the Grantee and the Company.

 

d.           Assignability.  Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by the Company or the Grantee without the prior written consent of the other party; provided that the Company may assign all or any portion of its rights hereunder to one or more persons or other entities designated by it in connection with a Change in Control of the Company.

 

e.           Applicable Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEBRASKA, EXCEPT TO THE EXTENT THAT THE CORPORATE LAW OF THE STATE OF DELAWARE SPECIFICALLY AND MANDATORILY APPLIES.

 

f.           Consent to Electronic Delivery.  By executing this Agreement, Grantee hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Grantee pursuant to applicable securities laws) regarding the Company and the Subsidiaries, the Plan, the Options and the Shares subject to the Options via Company web site or other electronic delivery.

 

 

  

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g.           Severability; Blue Pencil.  In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.  Grantee and the Company agree that the covenants contained in this Agreement are reasonable covenants under the circumstances, and further agree that if, in the opinion of any court of competent jurisdiction, such covenants are not reasonable in any respect, such court shall have the right, power and authority to excise or modify such provision or provisions of these covenants as to the court shall appear not reasonable and to enforce the remainder of these covenants as so amended.

 

h.           Section and Other Headings, etc.  The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

i.           Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.

 

j.           Delegation.  All of the powers, duties and responsibilities of the Committee specified in this Agreement may, to the full extent permitted by applicable law, be exercised and performed by the Board or any duly constituted committee thereof to the extent authorized by the Board or the Committee to exercise and perform such powers, duties and responsibilities.

 

k.           Gender and Number.  Except when otherwise indicated by the context, words in the masculine gender used herein shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular.

 

IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement effective as of the Grant Date.

 

	  	
CABELA'S INCORPORATED

	  	  	  	  
	  	  	  	  
	  	
By:

	  
	  	
Its:

	  
	  	  	  	  
	 	 	 	 
	  	  	  
	  	  	  	
, Grantee

 

 

 

 

Back to Form 10-Q

 

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