Here's a step by step procedure on how to reset HTC Merge to factory default settings.
Please note: this process will be delete all data from the HTC Merge. This process may or may not delete data stored on the microSD memory card. We highly advise to back all important data before proceeding.
Reset through Home screen settings
1. From the main home screen, select Menu
2. Select Settings, then Privacy
3. Select Factory data reset
4. Then tap Reset phone
5. Enter your password if prompted, then select Erase everything to confirm
If the device is frozen use button combination to reset
1. If the HTC Merge is frozen,Turn the power off. pull the battery out and put it back again
2. Hold the Volume Down button
3. Press and hold the Power button until the phone turns on
4. a menu will then appers that let you choose for Fastbook, Recovery, Clear Storage, and Simlock
5. Just Select Clear Storage by pressing the Volume Down button
6. Press and release the Power button
7. Select confirmation button: Volume Up for YES and Volume Down for NO
Once the wipe is complete, the phone will reboot to its factory default. All data including third-party applications installed will be deleted from the HTC Merge/Lexikon.