SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 5 (Final) to
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Marvel Enterprises,Inc.
(formerly Toy Biz, Inc.)
-----------------------
(Name of Issuer)
Common Stock, $.01 par value
----------------------------
(Title of Class of Securities)
57383M 10 8
-----------
(CUSIP Number)
Alan S. Cooper
Dickstein Partners Inc.
660 Madison Avenue, 16th Floor
New York, New York 10021
(212) 754-4000
--------------
(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)
October 29, 1999
----------------
(Date of Event which Requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13(d)-1(f) or 13d-1(g), check the following
box: |_|
Page 1 of 12 pages
<PAGE>
SCHEDULE 13D
CUSIP No.57383M 10 8 Page 2 of 12 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN & CO., L.P.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] see Item 5
(b) [_]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS
WC, 00 (See Item 3)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 1,240,797 (See Item 5)
SHARES --------------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY
EACH REPORTING Not Applicable
PERSON --------------------------------------------------------------
WITH 9) SOLE DISPOSITIVE POWER
1,240,797 (See Item 5)
--------------------------------------------------------------
10) SHARED DISPOSITIVE POWER
Not Applicable
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,240,797/1/ (See Item 5)
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Item 5) [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.7% (See Item 5)
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
- ------------
/1/ Includes 211,601 shares of Common Stock that the Reporting Person has the
right to acquire upon conversion of 203,659 shares of the Issuer's 8%
Convertible Exchangeable Preferred Stock (the "Preferred Stock") held by the
Reporting Person.
<PAGE>
SCHEDULE 13D
CUSIP No.57383M 10 8 Page 3 of 12 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN INTERNATIONAL LIMITED
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] see Item 5
(b) [_]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS
WC, 00 (See Item 3)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
BRITISH VIRGIN ISLANDS
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 226,701 (See Item 5)
SHARES --------------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY
EACH REPORTING Not Applicable
PERSON --------------------------------------------------------------
WITH 9) SOLE DISPOSITIVE POWER
226,701 (See Item 5)
--------------------------------------------------------------
10) SHARED DISPOSITIVE POWER
Not Applicable
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
226,701/2/ (See Item 5)
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Item 5) [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.7% (See Item 5)
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
- -------------
/2/Includes 212,368 shares of Common Stock that the Reporting Person has the
right to acquire upon conversion of 204,397 shares of Preferred Stock held by
the Reporting Person.
<PAGE>
SCHEDULE 13D
CUSIP No.57383M 10 8 Page 4 of 12 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN PARTNERS, L.P.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] see Item 5
(b) [_]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS
AF, 00 (See Item 3)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF Not Applicable
SHARES --------------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY
EACH REPORTING 1,240,797 (See Item 5)
PERSON --------------------------------------------------------------
WITH 9) SOLE DISPOSITIVE POWER
Not Applicable
--------------------------------------------------------------
10) SHARED DISPOSITIVE POWER
1,240,797 (See Item 5)
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,240,797/3/ (See Item 5)
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Item 5) [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.7% (See Item 5)
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
- --------
/3/ Includes 211,601 shares of Common Stock issuable upon conversion of
203,659 shares of Preferred Stock that may be deemed to be beneficially owned
by the Reporting Person.
<PAGE>
SCHEDULE 13D
CUSIP No.57383M 10 8 Page 5 of 12 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN PARTNERS INC.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] see Item 5
(b) [_]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS
AF, 00 (See Item 3)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF Not Applicable
SHARES --------------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY
EACH REPORTING 1,467,498 (See Item 5)
PERSON --------------------------------------------------------------
WITH 9) SOLE DISPOSITIVE POWER
Not Applicable
--------------------------------------------------------------
10) SHARED DISPOSITIVE POWER
1,467,498 (See Item 5)
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,467,498/4/ (See Item 5)
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Item 5) [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3% (See Item 5)
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
- --------
/4/ Includes 423,969 shares of Common Stock issuable upon conversion of
408,056 shares of Preferred Stock that may be deemed to be beneficially owned
by the Reporting Person.
<PAGE>
SCHEDULE 13D
CUSIP No.57383M 10 8 Page 6 of 12 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MARK DICKSTEIN
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] see Item 5
(b) [_]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS
PF, AF (See Item 3)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 16,667 (See Item 5)
SHARES --------------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY
EACH REPORTING 1,467,498 (See Item 5)
PERSON --------------------------------------------------------------
WITH 9) SOLE DISPOSITIVE POWER
16,667 (See Item 5)
--------------------------------------------------------------
10) SHARED DISPOSITIVE POWER
1,467,498 (See Item 5)
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,484,165/5/ (See Item 5)
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Item 5) [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.4% (See Item 5)
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
- --------
/5/ Includes 423,969 shares of Common Stock issuable upon conversion of 408,056
shares of Preferred Stock that may be deemed to be beneficially owned by the
Reporting Person and 6,667 shares of Common Stock issuable upon exercise of
options held by the Reporting Person.
<PAGE>
SCHEDULE 13D
CUSIP No.57383M 10 8 Page 7 of 12 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ELYSSA DICKSTEIN
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] see Item 5
(b) [_]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS
PF, AF (See Item 3)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 53,550 (See Item 5)
SHARES --------------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY
EACH REPORTING (See Item 5)
PERSON --------------------------------------------------------------
WITH 9) SOLE DISPOSITIVE POWER
53,550 (See Item 5)
--------------------------------------------------------------
10) SHARED DISPOSITIVE POWER
(See Item 5)
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
53,550/6/ (See Item 5)
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Item 5) [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.2% (See Item 5)
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
- -------------
/6/ Consists of 53,550 shares of Common Stock that the Reporting Person has the
right to acquire upon conversion of 51,540 shares of Preferred Stock held by
the Reporting Person.
<PAGE>
Amendment No, 5 (Final)
to
Schedule 13D
Introduction
This amends the Schedule 13D dated October 1, 1998 as amended by
Amendment No. 1 thereto, dated October 13, 1998, as amended by Amendment No. 2
thereto, dated March 4, 1999 and as amended by Amendment No. 3 thereto, dated
August 13, 1999 and as amended by Amendment No. 4 thereto dated October 5, 1999
(the "Schedule 13D"), filed by Dickstein & Co., L.P. ("Dickstein & Co."),
Dickstein Focus Fund L.P. ("Dickstein Focus"), Dickstein International Limited
("Dickstein International"), Dickstein Partners, L.P. ("Dickstein Partners"),
Dickstein Partners Inc. ("Dickstein Inc."), Elyssa Dickstein, Jeffrey Schwarz,
and Alan Cooper as Trustees U/T/A/D 12/27/88, Mark Dickstein, Grantor (the
"Dickstein Trust"), Mark Dickstein and Elyssa Dickstein, as Trustees of the Mark
and Elyssa Dickstein Foundation (the "Dickstein Foundation"), Mark Dickstein and
Elyssa Dickstein, with respect to the common stock, $.01 par value (the "Common
Stock"), of Marvel Enterprises, Inc., a Delaware corporation (the "Company").
Dickstein & Co., Dickstein Focus, Dickstein International, Dickstein Partners,
Dickstein Inc., the Dickstein Trust, the Dickstein Foundation, Mark Dickstein
and Elyssa Dickstein are collectively referred to as the "Reporting Persons."
The Company's 8% Convertible Exchangeable Preferred Stock is referred to as the
"Preferred Stock." Notwithstanding this Amendment No. 5 (Final), the Schedule
13D speaks as of its respective dates.
II. Items 5(a) 5(c) and 5 (e) of the Schedule 13D "Interest in
Securities of the Issuer" are amended and restated as follows:
(a) The Reporting Persons beneficially own an aggregate of 1,537,715
shares of Common Stock, representing approximately 4.5%/7/ of the Common Stock
outstanding. Such shares are directly held by the Reporting Persons as follows:
<TABLE>
<CAPTION>
Common Stock Percentages of
Issuable Upon Common Stock
Conversion of Beneficially
Common Stock Preferred Stock Preferred Stock Owned
<S> <C> <C> <C> <C>
Dickstein & Co. 1,029,196 203,659 211,601 3.7%
Dickstein Focus * * * *
Dickstein International 14,333 204,397 212,368 0.7
Dickstein Trust * * * *
Dickstein Foundation * * * *
</TABLE>
- -----------
/7/ Percentages are based upon 33,532,222 shares of Common Stock reported
outstanding at August 27, 1999 in the Company's Proxy Statement dated September
3, 1999 for the 1999 Annual Meeting of Stockholders held on September 30, 1999.
8
<PAGE>
less than
Mark Dickstein 16,667/8/ * * 0.1
Elyssa Dickstein * 51,540 53,550 0.2
Each share of Preferred Stock is convertible into 1.039 shares of Common Stock
(subject to certain anti-dilution adjustments), votes generally with the Common
Stock as a single class on the basis of the number of shares of Common Stock
into which it is convertible, and votes as a separate class on certain matters
as provided in the Company's Restated Certificate of Incorporation, to which
reference is made for a complete specification of the terms of the Preferred
Stock.
The following table sets forth the percentages of the outstanding
Common Stock, the outstanding Preferred Stock and the outstanding voting power
of the Company directly held by each of the Reporting Persons:
<TABLE>
<CAPTION>
Percentage
Percentage of Percentage of of Outstanding
Common Stock/9/ Preferred Stock/10/ Voting Power
<S> <C> <C> <C>
Dickstein & Co. 3.1% 1.1% 3.7%
Dickstein International less than 0.1 1.1 0.7
Mark Dickstein less than 0.1 -- less than 0.1
Elyssa Dickstein -- 0.3 0.2
Total 3.2% 2.5% 4.5%
</TABLE>
(c) From October 29 through November 2, the Reporting Persons sold an
aggregate of 2,500,000 shares of Preferred Stock, in each case at a price of $6
3/8 per share as follows: On October 29, Dickstein & Co. sold 385,296 shares; on
November 1, Dickstein & Co. sold 1,300,000 shares, 500,000 of which were sold in
an open market transaction; on November 2, Dickstein & Co. sold 514,704 shares,
Dickstein International sold 200,000 shares and Elyssa Dickstein sold 100,000
shares. Other than the November 1 open market sale of 500,000 shares by
Dickstein & Co., the sale by the Reporting Persons of the remaining 2,000,000
shares were effected in privately negotiated transactions.
- -----------
/8/ Includes 6,667 shares issuable upon exercise of options held by Mr.
Dickstein.
/9/ Based upon 33,532,222 shares of Common Stock outstanding. See the previous
footnote.
/10/ Based upon 18,311,276 shares of Preferred Stock outstanding following
payment of an in-kind dividend for the quarter ended September 30, 1999.
9
<PAGE>
Except as aforesaid and as set forth in previous amendments to the
Schedule 13D none of the persons identified in Item 2 has effected any
transactions in the Common Stock during the past 60 days.
(e) The Reporting Persons ceased to be the beneficial owner of more than
five percent of the outstanding shares on October 28, 1999. Accordingly, the
Reporting Persons intend not to further amend their report on Schedule 13D to
reflect changes in the facts set forth therein which may occur after the date
hereof."
III. Item 6 of the Schedule 13D "Contracts, Arrangements, Understandings or
Relationships with Respect to Securities of the Issuer" is amended by adding the
following paragraph to the end of such section.
"In connection with the sale by the Reporting Persons of an aggregate of
814,704 shares of Preferred Stock (the "Shares") to Classic Heroes, Inc.,
Biobright Corporation and Isaac Perlmutter T.A. (the "Purchasers"), on November
2, 1999, certain of the Reporting Persons entered into an agreement (the "Letter
Agreement") with the Purchasers pursuant to which, among other things, effective
upon the sale of the Shares, each of the Dickstein Entities signatory to the
Letter Agreement and Mark Dickstein, as Dickstein Designator (as defined in the
Stockholder's Agreement), waive their rights under the Stockholder's Agreement
to have a Dickstein Designee (as defined in the Stockholder's Agreement)
nominated and/or elected as a Director and that they relinquish all other rights
under the Stockholder's Agreement. A copy of the Letter Agreement is annexed
hereto as Exhibit 4."
IV. Item 7 of the Schedule 13D "Materials to be filed as Exhibits" shall be
amended by adding the following Exhibit:
Exhibit 4: Form of Letter Agreement dated November 2, 1999 between Mark
Dickstein, Dickstein & Co., L.P. Dickstein Focus Fund L.P. Dickstein
International Limited, Elyssa Dickstein, Jeffrey Schwarz and Alan Cooper as
Trustees U/T/A/D 12/27/88, Mark Dickstein Grantor and Mark Dickstein and Elyssa
Dickstein, as Trustees of the Mark and Elyssa Dickstein Foundation and Classic
Heroes, Inc., Biobright Corporation and Isaac Perlmutter T.A.
10
<PAGE>
SIGNATURES
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the undersigned certifies that the information set forth in this
Statement is true, complete and correct.
Date: November 2, 1999
DICKSTEIN & CO., L.P.
By: Alan S. Cooper, as Vice President of
Dickstein Partners Inc., the general
partner of Dickstein Partners, L.P., the
general partner of Dickstein & Co., L.P.
By: /s/ Alan S. Cooper
-----------------------------
Name: Alan S. Cooper
DICKSTEIN FOCUS FUND L.P.
By: Alan S. Cooper, as Vice President of
Dickstein Partners Inc., the general
partner of Dickstein Partners, L.P., the
general partner of Dickstein Focus
Fund L.P.
By:/s/ Alan S. Cooper
-----------------------------
Name: Alan S. Cooper
DICKSTEIN INTERNATIONAL LIMITED
By: Alan S. Cooper, as Vice President of
Dickstein Partners Inc., the agent of
Dickstein International Limited
By: /s/ Alan S. Cooper
-----------------------------
Name: Alan S. Cooper
DICKSTEIN PARTNERS, L.P.
By: Alan S. Cooper, as Vice President of
Dickstein Partners Inc., the general
partner of Dickstein Partners, L.P.
By:/s/ Alan S. Cooper
------------------------------
Name: Alan S. Cooper
11
<PAGE>
DICKSTEIN PARTNERS INC.
By: Alan S. Cooper, as Vice President
By: /s/ Alan S. Cooper
-------------------
Name: Alan S. Cooper
MARK DICKSTEIN
By: /s/ Mark Dickstein
-------------------
Name: Mark Dickstein
ELYSSA DICKSTEIN
By: /s/ Elyssa Dickstein
-------------------
Name: Elyssa Dickstein
ELYSSA DICKSTEIN, JEFFREY SCHWARZ,
AND ALAN S. COOPER AS TRUSTEES U/T/A/D
12/27/88, MARK DICKSTEIN, GRANTOR
By: /s/ Alan S. Cooper
-------------------
Name: Alan S. Cooper
MARK DICKSTEIN AND ELYSSA DICKSTEIN
AS TRUSTEES OF THE MARK AND ELYSSA
DICKSTEIN FOUNDATION
By: /s/ Mark Dickstein
-------------------
Name: Mark Dickstein
12
CLASSIC HEROES, INC.
BIOBRIGHT CORPORATION
ISAAC PERLMUTTER T.A.
P.O. Box 1028
Lake Worth, Florida 33460-1028
November 2, 1999
Mark Dickstein
Dickstein & Co., L.P.
Dickstein Focus Fund L.P.
Dickstein International Limited
Elyssa Dickstein, Jeffrey Schwarz and Alan Cooper as Trustees U/T/A/D 12/27/88,
Mark Dickstein, Grantor
Mark Dickstein and Elyssa Dickstein, as trustees of the Mark and Elyssa
Dickstein Foundation
c/o Dickstein Partners Inc.
660 Madison Avenue, 16th Floor
Ladies and Gentlemen:
We have discussed with Dickstein & Co., L.P., Dickstein International
Limited and Elyssa Dickstein (the "Sellers") our proposed purchase from the
Sellers of an aggregate of 814,704 shares (the "Shares") of 8% cumulative
convertible exchangeable preferred stock, par value $0.01 per share, of Marvel
Enterprises, Inc., a Delaware corporation (the "Company").
You are members of the Investor Group under the Stockholders' Agreement
dated as of October 1, 1998 by and among the Company, Avi Arad, you, the
Perlmutter Entities, Chase, Morgan Stanley, and Whippoorwill (the "Stockholders'
Agreement"). Capitalized terms not defined in this letter have the same meanings
here as they do in the Stockholders' Agreement. You have informed us that,
effective upon the Sellers' sale to us of the Shares, each of you, as Dickstein
Entities, and Mark Dickstein, as Dickstein Designator, waive your rights under
the Stockholders' Agreement to have a Dickstein Designee nominated and/or
elected as a Director. You have also informed us that, effective upon the
Sellers' sale to us of the Shares, you relinquish all your other rights under
the Stockholders' Agreement.
Mark Dickstein, as Dickstein Designator, agrees that if any part of the
foregoing waiver and relinquishment is ineffective, then he shall, at any time
when permitted to make designations under the Stockholders' Agreement, designate
an individual named by the Investor Group Designator as the Dickstein Designee.
We are relying, in purchasing the Shares from the Sellers, on the
waiver and relinquishment referred to above. With respect to those of you who
are Sellers, we are also relying upon your acknowledgment of the following: (i)
that, until Mark Dickstein's resignation as a member of the Company's Board of
Directors, you had, or had access to, information about the Company as a result
of Mr. Dickstein's service on the Company's Board of Directors and otherwise
that was the equivalent of the information about the Company which we have, or
to which we have access, as a result of Isaac Perlmutter's service on the
Company's Board of Directors and otherwise; (ii) that your decision to sell us
the Shares has been made without reliance on, or solicitation by, us, our
representatives or the Company; (iii) that the price at which you intend to sell
<PAGE>
us the Shares is a price at which you would sell the shares, on the same terms,
to any willing buyer at this time (regardless of whether we believe the shares
are worth more than the sales price); and (iv) that, except for the payment of
the purchase price for the Shares, we will have no liability to you arising from
your sale to us of the Shares.
We acknowledge that you will have no liability to us arising from the
Sellers' sale to us of the Shares, other than your obligations under this letter
and the Sellers' obligation to deliver the Shares to us free and clear of any
encumbrances or adverse claims.
Please indicate your agreement to the foregoing by signing below.
Very truly yours,
CLASSIC HEROES, INC.
By: __________________________________
Name: Isaac Perlmutter
Title: President
BIOBRIGHT CORPORATION
By: __________________________________
Name: Isaac Perlmutter
Title: President
ISAAC PERLMUTTER T.A.
By: __________________________________
Name: Isaac Perlmutter
Title: Trustee
<PAGE>
AGREED:
_________________________________________
Mark Dickstein, in his individual capacity and as the Dickstein Designator
DICKSTEIN & CO., L.P.
By: Dickstein Partners, L.P.
By: Dickstein Partners Inc.
By:__________________________________
Name: Alan S. Cooper
Title: Vice President
DICKSTEIN FOCUS FUND L.P.
By: Dickstein Partners, L.P.
By: Dickstein Partners Inc.
By:__________________________________
Name: Alan S. Cooper
Title: Vice President
DICKSTEIN INTERNATIONAL LIMITED
By: Dickstein Partners Inc.
By:__________________________________
Name: Alan S. Cooper
Title: Vice President
ELYSSA DICKSTEIN, JEFFREY SCHWARZ AND ALAN COOPER AS TRUSTEES
U/T/A/D 12/27/88, MARK DICKSTEIN, GRANTOR
By:__________________________________
Alan S. Cooper
Trustee
MARK DICKSTEIN AND ELYSSA DICKSTEIN, AS TRUSTEES OF THE
MARK AND ELYSSA DICKSTEIN FOUNDATION
By:___________________________________
Mark Dickstein
Trustee
