--Ontela co-founder and chief operating officer Brian Schultz is stepping down from the 3-year-old Seattle mobile photo application startup. Schultz plans to stay on with the company as an adviser and help recruit a new chief financial officer, a position that CEO Dan Shapiro said is needed at the company as it attracts new customers.

--Xconomy's Luke Timmerman has more details on the closure of Merck's facility in South Lake Union, reporting that about 100 of the 300 employees will be offered jobs in Boston. The story also notes that the Rosetta Biosoftware unit, with about 60 staffers, could remain in Seattle.

--In the wake of the Entellium mess, IDG reports that hosted customer relationship management software providers may struggle to reach profitability.

--Guy Kawasaki offers his take on entrepreneurs, venture capitalists and making a good investment pitch in an interview with The New York Times. An excerpt: "The more I meet with entrepreneurs the less I think I can pick them. Sure, there are stereotypes: bright, aggressive, enthusiastic, young, etc. But there are many successful entrepreneurs that don’t come off this way. The richest vein I have seen is two guys/gals who want to create a tool that they themselves want to use."

--Mercent, which helps online merchants promote products on shopping sites, has laid off six employees in a move that Chief Executive Eric Best said would bolster the company's cash position as it strives toward profitability. "We are looking at the next year and we think it is important to take a cautious approach," said Best, who is targeting profitability in the next 18 months. Founded in 2005, Mercent raised a $6.5 million venture round from Madrona Venture Group, TVC and others earlier this year.

--Paul Allen may have helped create the world's largest software company. But the Microsoft co-founder will receive a different type of honor Sunday night, with The Seattle Times reporting that the billionaire will receive the Herbie Hancock Humanitarian Award from the Thelonius Monk Institute of Jazz. Citing a press release, the Times notes that Allen was chosen because of "his visionary achievements as a businessman and a global philanthropist."