<PAGE> 1
As filed with the Securities and Exchange Commission on May 17, 1995.
Registration No. 33-58295
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________
AMENDMENT NO. 1
TO
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
______________________
EATON CORPORATION
(Exact Name of Registrant as Specified in its Charter)
OHIO 34-0196300
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
EATON CENTER
1111 SUPERIOR AVENUE
CLEVELAND, OHIO 44114-2584
(216) 523-5000
(Address, Including Zip Code, and Telephone Number, Including
Area Code, of Registrant's Principal Executive Offices)
E. R. FRANKLIN, SECRETARY
EATON CENTER
1111 SUPERIOR AVENUE
CLEVELAND, OHIO 44114-2584
(216) 523-5000
(Name, Address, Including Zip Code, and Telephone Number, Including
Area Code, of Agent For Service)
COPIES TO:
Raymond T. Sawyer, Esq.
Thompson, Hine and Flory
1100 National City Bank Building
Cleveland, Ohio 44114-3070
(216) 566-5500
Approximate date of commencement of proposed sale to the public:
As soon as practicable after the Registration Statement becomes effective.
If the only securities being registered on this form are being offered pursuant
to dividend or interest reinvestment plans, please check the following box. [ ]
If any of the securities being registered on this form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box. [x]
<PAGE> 2
<TABLE>
CALCULATION OF REGISTRATION FEE
<CAPTION>
Proposed Maximum Proposed Maximum Amount of
Title of Shares to Amount to be Aggregate Price Aggregate Offering Registration
be Registered Registered Per Unit(1) Price(1) Fee(1)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Shares, 1,599,988 $50.07 $80,111,399.00 $27,622.41
$.50 par value per
share
<FN>
(1) Estimated solely for the purpose of calculating the registration fee in
accordance with Rule 457, based on the average of the high and low prices
reported for Eaton Common Shares on the New York Stock Exchange, on March
23, 1995.
</TABLE>
================================================================================
The registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that this
Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933, as amended, or until the
Registration Statement shall become effective on such date as the
Commission, acting pursuant to such Section 8(a), may determine.
<PAGE> 3
PROSPECTUS
EATON CORPORATION
1,599,988 COMMON SHARES
This Prospectus relates to 1,599,988 Common Shares, $.50 par value per
share (the "Shares"), of Eaton Corporation, an Ohio corporation ("Eaton" or the
"Company"), which are owned by the former shareholders of Lectron Products,
Inc. (the "Selling Shareholders"). See "The Selling Shareholders." The Shares
may be offered for sale from time to time by the Selling Shareholders in open
market ordinary brokerage transactions on the New York Stock Exchange, the
Chicago Stock Exchange, the Pacific Stock Exchange, or the London Stock
Exchange, in privately negotiated transactions at market prices prevailing at
the time of sale or, in the case of private transactions, at negotiated prices.
Whether or not any such sales will be made and the timing and amount of any
sale is within the sole discretion of the Selling Shareholders. The Company
will not receive any of the proceeds from the sale of the Shares. See "Plan of
Distribution."
The Shares were acquired by the Selling Shareholders pursuant to an
Agreement and Plan of Merger dated as of November 4, 1994 (the "Merger
Agreement") among the Company, Eaton Michigan Corporation, a Michigan
corporation wholly-owned by the Company ("Merger Sub"), and Lectron Products,
Inc., a Michigan corporation ("Lectron"), providing for the merger (the
"Merger") of Merger Sub with and into Lectron and Lectron being the surviving
corporation of the Merger. As of the closing of the transactions contemplated
by the Merger Agreement, each common share of Lectron, par value $1.00 per
share, issued and outstanding immediately prior to the Merger (other than
common shares held in the treasury of Lectron or owned by any subsidiary of
Lectron), was converted into the right to receive 1.7506715 Eaton Common
Shares. The Shares are being registered pursuant to the terms of the Merger
Agreement.
Eaton Common Shares are listed on the New York Stock Exchange. On March
23, 1995, the average of the high and low prices of Eaton's Common Shares on
the New York Stock Exchange was $50.07.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
The date of this Prospectus is May 17, 1995
<PAGE> 4
No dealer, salesman, or any other person has been authorized to give any
information or to make any representations other than those contained in this
Prospectus in connection with the offering contained herein, and, if given or
made, such information or representations must not be relied upon as having
been authorized by the Company or the Selling Shareholders. This Prospectus
does not constitute an offer to sell or a solicitation of an offer to buy any
of the securities offered hereby to any person to whom it is unlawful to make
such offer or solicitation. Neither the delivery of this Prospectus nor any
sale hereunder shall, under any circumstances, create any implication that
there has been no change in the affairs of the Company since the date hereof.
AVAILABLE INFORMATION
---------------------
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance
therewith files reports, proxy material, and other information with the
Securities and Exchange Commission (the "Commission"). Such reports, proxy
material, and other information concerning the Company and the Registration
Statement (as defined herein) can be inspected and copied at the public
reference facilities maintained by the Commission at Judiciary Plaza, 450 Fifth
Street, N.W., Room 1024, Washington, D.C. 20549-1004, and at the following
Regional Offices of the Commission: Midwest Regional Office, 500 West Madison
Street, Suite 1400, Chicago, Illinois 60661-2511 and Northeast Regional Office,
7 World Trade Center, Suite 1300, New York, New York 10048. Copies of such
material can be obtained from the Public Reference Section of the Commission at
450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549-1004, at prescribed
rates. Such reports, proxy material, and other information concerning the
Company and the Registration Statement can also be inspected at the offices of
the New York Stock Exchange, 20 Broad Street, New York, New York 10005, the
Chicago Stock Exchange, 440 South LaSalle Street, Chicago, Illinois 60605, and
the Pacific Stock Exchange, 301 Pine Street, San Francisco, California 94104.
This Prospectus constitutes part of a Registration Statement on Form S-3
(together with all amendments and exhibits thereto, the "Registration
Statement") filed by the Company with the Commission under the Securities Act
of 1933, as amended (the "Securities Act"). As permitted by the rules and
regulations of the Commission, this Prospectus omits certain information
contained in the Registration Statement. Statements contained in this
Prospectus or in any document incorporated by reference in this Prospectus are
summaries that are not necessarily complete and, in each instance, reference is
made to the copy of such document as filed. Each such statement is qualified
in its entirety by such reference. The Registration Statement, including
exhibits and schedules thereto, and documents or information incorporated by
reference may be inspected without charge at the offices of the Commission, and
copies of such materials may be obtained therefrom at prescribed rates.
- 2 -
<PAGE> 5
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
-------------------------------------------------
The Company incorporates by reference into this Prospectus the
following documents:
1. The Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1994;
2. The Company's Quarterly Report on Form 10-Q for the
period ended March 31, 1995; and
2. All documents filed by the Company pursuant to
Sections 13(a), 13(c), 14, or 15(d) of the Exchange
Act subsequent to the date of this Prospectus and
prior to the termination of the offering of the
Shares.
Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for all purposes to the extent that a statement contained herein or in any
other subsequently filed document that also is or is deemed to be incorporated
by reference herein, modifies or replaces such statement. Any statement so
modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Prospectus.
The Company will provide without charge to each person receiving a
copy of this Prospectus, upon that person's written or oral request, a copy
(without exhibits, unless those exhibits are specifically incorporated by
reference into the documents that this Prospectus incorporates) of any
documents incorporated by reference in this Prospectus. Requests for copies
should be directed to Eaton Corporation, Shareholder Relations, Eaton Center,
1111 Superior Avenue, Cleveland, Ohio 44114-2584 (telephone (216) 523-5000).
THE COMPANY
-----------
Eaton Corporation ("Eaton" or the "Company") is a leading global
manufacturer of highly engineered products which serve the automotive,
industrial, construction, commercial, aerospace and marine markets. The
Company offers high-quality products worldwide and derives a significant
majority of its net sales from products that are number one or number two in
the markets that they serve. Principal products include truck transmissions
and axles, engine components, hydraulic products, electrical power distribution
and control equipment, ion implanters and a wide variety of controls. Eaton's
products are often essential components of products ranging from heavy duty
trucks and home appliances to the Space Shuttle. Eaton maintains and expands
its market positions by focusing on the development and production of high-
quality, higher value-added products and by investing in superior product and
process technologies. The Company currently has approximately 150
manufacturing facilities in 18 countries.
- 3 -
<PAGE> 6
On January 31, 1994, the Company completed the acquisition of
Westinghouse Electric Corporation's Distribution and Control Business Unit
("DCBU") for an adjusted purchase price of $1.050 billion. DCBU is a leader in
the U.S. electrical distribution industry and in niche industrial control
market segments. The combination of DCBU with the Company's existing
industrial control and power distribution business will strengthen Eaton's
competitive position and provide the opportunity for significant cost savings
resulting from the complementary fit of the two businesses. In 1993, DCBU had
total sales of $1.1 billion. This addition to the electrical and electronic
controls segment of Eaton's business increased that segment's share to more
than one-half of Eaton's consolidated net sales in 1994, thereby expanding the
end-market diversification of Eaton's sales and lessening its dependence on the
truck and automotive markets.
VEHICLE COMPONENTS
Eaton occupies a strong competitive position in the vehicle components
market and is considered a market leader in many of its product lines. Eaton's
vehicle component product lines include truck components, passenger car
components and off-highway vehicle components. Major customers for Eaton's
vehicle components are original equipment manufacturers ("OEMs") of trucks,
passenger cars and off-highway vehicles.
Truck Components -- The Company manufactures over 100 models of
medium- and heavy-duty truck transmissions. The Company is the leading
manufacturer of transmissions for heavy-duty trucks. The market for heavy-duty
truck transmissions is affected significantly by the overall level of economic
activity. The Company also manufactures axles, brakes and engine valves for
trucks, leaf springs for light trucks, sport utility vehicles and vans, and
other truck components.
Passenger Car Components -- The Company manufactures engine valves,
hydraulic valve lifters, viscous fan drives, fans and fan shrouds, locking
differentials, superchargers, tire valves and other passenger car components.
Off-Highway Vehicle Components -- Eaton products are also used on farm
tractors, backhoes, pavers, excavators, grain combines, drill rigs, garden
tractors and riding mowers. These products include low-speed, high-torque
motors, light-, medium- and heavy-duty hydrostatic transmissions, hydrostatic
power steering units, a variety of hydraulic pumps, motors, valves and
cylinders and a family of hydrostatic transaxles.
ELECTRICAL AND ELECTRONIC CONTROLS
Eaton is a market leader in the manufacture of electrical and
electronic controls, holding number one or number two domestic market positions
with the majority of its core
- 4 -
<PAGE> 7
products. The Company's product lines include industrial and commercial
controls, automotive and appliance controls and specialty controls. Eaton
markets its electrical and electronic control products to commercial,
industrial, automotive, appliance, aerospace and government customers.
Industrial and Commercial Controls -- Eaton offers a wide range of
products under the Cutler-Hammer, Westinghouse and Challenger brand names to
control the distribution of electric power and to protect and govern electric
motors. As a consequence of the DCBU acquisition, Eaton now holds a leadership
position in the power distribution industry. Eaton's power distribution
products include circuit breakers, loadcenters, safety switches, panelboards
and switchboards. These products serve residential, light commercial and
industrial construction markets. For industrial control markets, Eaton
products include contactors, overload relays, pushbuttons, sensors, variable
speed drives, electronic operator interface devices, industrial workstations,
count controls and logic products. Switches and controls are used on portable
power tools, communication equipment, medical tools, computer equipment and
construction and agricultural machinery. Eaton also supplies switches,
controls and other products used on commercial and military aircraft and ships.
These control products are sold through a network of over 1,500
independent distributors. The acquisition of DCBU has broadened significantly
Eaton's electrical and electronic control product lines and distribution
network.
Automotive and Appliance Controls -- Eaton is a supplier of control
products for two large markets -- vehicle manufacturers and appliance makers.
Eaton has a comprehensive line of switches which are sold to major global
automobile manufacturers. Other vehicle products include speed controls and
climate control components. Appliance controls include electronic and
electro-mechanical control products, including timers, water valves, and
pressure switches. Timers control cycles on clothes washers, dryers and
dishwashers; water valves regulate flow into clothes washers, dishwashers,
refrigerator water dispensers and icemakers; and pressure switches govern water
levels in clothes washers. Eaton also offers controls for ranges and other
cooking appliances.
Specialty Controls -- The major product of this business unit is
semiconductor manufacturing equipment, primarily ion implanters. Eaton offers
a complete line of ion implanters which are used by major semiconductor
manufacturers to make microprocessors for a wide variety of products. Other
products included within this business unit are golf grips, engineered
fasteners and industrial clutches and brakes.
- 5 -
<PAGE> 8
DEFENSE SYSTEMS
Eaton manufactures defense electronics systems. Eaton's defense
product line includes strategic countermeasures, tactical jamming systems,
electronic intelligence systems and electronic support measures.
The Company's principal executive office is located at Eaton Center,
1111 Superior Avenue, Cleveland, Ohio 44114-2584; telephone (216) 523-5000.
THE SELLING SHAREHOLDERS
------------------------
On November 16, 1994, Merger Sub merged with and into Lectron, with
Lectron as the surviving corporation becoming a wholly-owned subsidiary of the
Company. As of the closing of the transactions contemplated by the Merger
Agreement, each Lectron common share, par value $1.00 per share, issued and
outstanding immediately prior to the Merger (other than common shares held in
the treasury of Lectron or owned by any subsidiary of Lectron) was converted
into a right to receive 1.7506715 common shares, par value $.50 per share, of
Eaton Corporation (the "Shares").
The Company issued a total of 1,599,988 Shares, of which 1,520,008
shares were issued and delivered directly to the Selling Shareholders and
79,980 shares (the "Escrow Shares") were issued to the Selling Shareholders and
delivered into an escrow account (the "Escrow Account"). The purpose of the
Escrow Account is to provide security for, and funds to satisfy, certain
indemnification obligations of Lectron under the Merger Agreement. Any
dividend or other distribution on the Escrow Shares will be paid or made, as
the case may be, directly to the Selling Shareholders and will not be added to
the Escrow Account.
Subject to prior distribution to the Company to satisfy
indemnification obligations, the Escrow Shares may be sold pursuant to the
Registration Statement. The net cash proceeds realized from the sale of the
Escrow Shares shall immediately be deposited to the Escrow Account. The
Company shall distribute quarterly to the Selling Shareholders any and all
interest that accrues on the cash held in the Escrow Account. Subject to (i)
prior termination of the Escrow Account in satisfaction of indemnification
obligations, or (ii) an extended escrow term in respect of asserted
indemnification claims and certain potential indemnification claims, the term
of the Escrow Account will continue until November 16, 1995.
Pursuant to the Merger Agreement, the Company agreed to register the
Shares under the Securities Act, and in connection therewith agreed to
indemnify the Selling Shareholders against certain liabilities, including
liabilities under the Securities Act.
- 6 -
<PAGE> 9
As of January 31, 1995, the Shares represented approximately 2% of the
outstanding Eaton Common Shares. Prior to the issuance of the Shares in
connection with the closing of the transaction contemplated by the Merger
Agreement, the Selling Shareholders did not hold any Eaton Common Shares,
except a single Selling Shareholder who held less than 1% of the outstanding
Eaton Common Shares.
The Shares (including the Escrow Shares) are held by the Selling
Shareholders as follows:
<TABLE>
<CAPTION>
Number
Name Address of Shares
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Donald C. Briedrick Corporation 5211 Elmgate 41,228
Profit Sharing Plan Orchard Lake, MI 48324
John W. Curnow TR of The John W. 7000 Gunlock Bay 4,376
Curnow Trust UA, dated 12/31/91 Utica, MI 48317
Roney & Company Cust FBO Jerome 14157 Drumright 4,376
E. Deska IRA UA, dated 5/28/95 Sterling Heights, MI 48078
Charles A. Detweiler & Tracy L. 7712 South Durand Road 4,376
McBride Detweiler JT TEN WROS Durand, MI 48429
Erich Faber & Hermine Faber JT Unterer Lohweg 3 4,376
TEN WROS 86500 Kutzenhausen-Maingrundel
Federal Republic of Germany
Robert John Withrow TR of The c/o John D. Withrow 5,252
John D. Withrow Trust UA, dated 2726 Birch Harbor Lane
11/12/92 FBO Monica Sue Fox West Bloomfield, MI 48324
Raymon L. Goff & Martha Goff JT 3265 Parkwood Drive 31,512
TEN WROS Rochester Hills, MI 48306
</TABLE>
- 7 -
<PAGE> 10
<TABLE>
<S> <C> <C>
John K. Hicks & Sharon S. Hicks 1081 Woodbridge Lane 31,512
JT TEN Rochester, MI 48306
Ronald M. Johnson & Patricia A. 527 Fieldstone Drive S. 2,188
Johnson JT TEN WROS Rochester Hills, MI 48309
Roney & Company Cust FBO Ronald 527 Fieldstone Drive S. 2,188
M. Johnson IRA UA, dated 5/28/92 Rochester Hills, MI 48309
Amber L. Keene c/o Howell H. Ridley 1,663
22332 Worcester
Novi, MI 48374
Walter S. McPhail 5600 Pontiac Trail 922,166
Orchard Lake, MI 48323
Frank A. Scerbo & Marvin I. c/o Frank A. Scerbo and Marvin I. Bannon, Co- 131,300
Bannon TR of The James Hamilton Trustees
McPhail IV Trust UA, dated 1420 South Livernois
9/14/82 Rochester Hills, MI 48307
Frank A. Scerbo & Marvin I. c/o Frank A. Scerbo and Marvin I. Bannon, Co- 131,300
Bannon TR of The Melinda M. Trustees
McPhail Trust UA, dated 9/14/82 1420 South Livernois
Rochester Hills, MI 48307
Walter S. McPhail TR of The 1420 South Livernois 43,329
McPhail Corp Emp Profit Sharing Rochester Hills, MI 48307
Trust UA, dated 11/1/84
Paul A. Michaels 27734 Lyndon 411
Livonia, MI 48154
Howell H. Ridley TR of The Howell 22332 Worcester 37,902
H. Ridley Trust UA, dated 2/10/84 Novi, MI 48374
</TABLE>
- 8 -
<PAGE> 11
<TABLE>
<S> <C> <C>
Craig H. Ridley c/o Howell H. Ridley 1,663
22332 Worchester
Novi, MI 48374
Tracey L. Ridley c/o Howell H. Ridley 1,663
22332 Worchester
Novi, MI 48374
Frank A. Scerbo 1122 Brookwood 62,761
Birmingham, MI 48009
Frank A. Scerbo TR UA, dated 1122 Brookwood 2,188
4/3/85 FBO Jennifer A. Scerbo Birmingham, MI 48009
Frank A. Scerbo TR UA, dated 1122 Brookwood 2,188
4/3/85 FBO James A. Scerbo Birmingham, MI 48009
Frank A. Scerbo TR UA, dated 1122 Brookwood 2,188
4/3/85 FBO Holly J. Scerbo Birmingham, MI 48009
Frank A. Scerbo TR UA, dated 1122 Brookwood 2,188
4/3/85 FBO J. Jordan Scerbo Birmingham, MI 48009
Frank A. Scerbo TR UA, dated 1122 Brookwood 2,188
4/3/85 FBO Heidi E. Wysong Birmingham, MI 48009
MLPF&S Cust FBO Richard N. 1224 Oakwood Court 8,753
Sorenson IRA UA, dated 10/3/91 Rochester Hills, MI 48307
Thomas L. Steiner 67601 Sisson Street 8,753
Romeo, MI 48095
George S. Todd 6580 Old Coach Trail 12,254
Washington, MI 48094
</TABLE>
- 9 -
<PAGE> 12
<TABLE>
<S> <C> <C>
Lawrence W. Tomczak TR of The 1145 Hickory Hill 8,753
Tomczak Trust UA, dated 11/5/85 Rochester Hills, MI 48309
with Lawrence W. Tomczak & Sandra
M. Tomczak
Earnest E. Votaw 80 Lane 217 4,376
Hamilton Lake
Hamilton, IN 46742
Ronald G. Wagner TR of The Ronald 7500 Deer Park Trail 41,228
G. Wagner Corporation Profit Clarkston, MI 48346
Sharing Plan
Alan B. Waites 3380 John R. Road 8,753
Rochester Hills, MI 48307
Thomas J. Waraksa 612 Hawksmoore Court 1,094
Clarkston, MI 48348
Thomas J. Waraksa as Custodian 612 Hawksmoore Court 1,094
for Jeffrey T. Waraksa under Clarkston, MI 48348
Michigan Uniform Gifts to Minors
Act
Thomas J. Waraksa as Custodian 612 Hawksmoore Court 1,094
for Michael J. Waraksa under Clarkston, MI 48348
Michigan Uniform Gifts to Minors
Act
Roney & Company Cust FBO Thomas 612 Hawksmoore Court 1,094
J. Waraksa IRA UA, dated 5/28/92 Clarkston, MI 48348
John D. Withrow & Dortha J. 2726 Birch Harbor Lane 15,756
Withrow JT TEN WROS West Bloomfield, MI 48324
</TABLE>
- 10 -
<PAGE> 13
<TABLE>
<S> <C> <C>
Jack David Withrow c/o 2726 Birch Harbor Lane 5,252
West Bloomfield, MI 48324
Robert John Withrow c/o 2726 Birch Harbor Lane 5,252
West Bloomfield, MI 48324
</TABLE>
USE OF PROCEEDS
---------------
The Selling Shareholders will offer the Shares as principals for their
own accounts. The Company will receive none of the proceeds of any such sale.
DESCRIPTION OF EATON COMMON SHARES
----------------------------------
The following is a summary of certain of the provisions concerning the
Eaton Common Shares contained in the Company's Amended Articles of
Incorporation (the "Articles") and its Amended Regulations (the "Regulations"),
as affected by debt agreements with certain lenders. Reference is made to such
Articles and Regulations, which are exhibits to the Registration Statement, for
a full and complete statement of such provisions and rights, and the following
statements are qualified in their entirety by such reference.
AUTHORIZED NUMBER
The Articles authorize the issuance of up to 300,000,000 Eaton Common
Shares. As of January 31, 1995, there were 77,997,469 Eaton Common Shares
issued and outstanding. The outstanding Eaton Common Shares are fully paid and
non-assessable, and shareholders are not subject to any liability for calls and
assessments. Eaton does not have any current plans to issue any additional
Eaton Common Shares other than in connection with exercises of outstanding
options to acquire Eaton Common Shares which have been issued under benefit
plans of the Company. The Articles also authorize the issuance of up to
14,106,394 shares of preferred stock ("Preferred Shares"). Eaton has been
authorized by its Board of Directors to purchase up to five million Eaton
Common Shares over a five year period. No more than 1.5 million shares may be
purchased in any one year. Currently, there are no Preferred Shares issued and
outstanding.
DIVIDEND RIGHTS
Holders of Eaton Common Shares are entitled to receive such dividends
as may be declared by Eaton's Board of Directors subject to provisions of law.
- 11 -
<PAGE> 14
VOTING RIGHTS
Each Eaton Common Share entitles the holder to one vote, with the
right of cumulative voting in the election of directors.
Notwithstanding any provision of law requiring the vote of a
designated proportion of the voting power of Eaton for any action, the Articles
provide that such action may be taken by the vote of the holders of shares
entitling them to exercise a majority of the voting power of Eaton, except in
each case as is otherwise provided in the Articles or Regulations. The
Articles and the Regulations provide for a voting proportion which is different
from that provided by statutory law in order for shareholders to take action in
certain circumstances, including the following:
(1) Two-thirds vote required to fix or change the number of
directors.
(2) Two-thirds vote required for removal of directors.
(3) Fifty percent of the outstanding Eaton Common Shares required
to call a special meeting of shareholders.
(4) Two-thirds vote required to amend the Regulations without a
meeting.
(5) Two-thirds vote required to amend the provisions described in
items (1) through (4) above and this provision, unless such
action is recommended by two-thirds of the members of the
Board of Directors.
(6) Two-thirds vote required to approve certain transactions, such
as the sale, exchange, lease, transfer or other disposition by
Eaton of all, or substantially all, of its assets or business,
or the consolidation of Eaton or its merger into another
corporation, or certain other mergers and majority share
acquisitions.
(7) Two-thirds vote required to amend the provisions described in
item (6) above, or this provision.
The requirement of a two-thirds vote in certain circumstances may have
the effect of delaying, deferring, or preventing a change in control of Eaton.
LIQUIDATION RIGHTS
In the event of any voluntary or involuntary liquidation, dissolution
or winding up of Eaton, after the payment or provision for payment of the debts
and other liabilities of Eaton
- 12 -
<PAGE> 15
and the preferential amounts to which holders of Eaton's Preferred Shares are
entitled (if any such Preferred Shares are then outstanding), the holders of
the Eaton Common Shares are entitled to share pro rata in the assets of Eaton
remaining for distribution to shareholders.
MISCELLANEOUS RIGHTS, LISTING AND TRANSFER AGENT
The Eaton Common Shares have no preemptive or conversion rights and
there are no redemption or sinking fund provisions applicable thereto.
The outstanding Eaton Common Shares are listed on the New York,
Chicago, Pacific, and London Stock Exchanges.
KeyCorp Shareholder Services, Inc., headquartered in Cleveland, Ohio,
is the transfer agent and registrar for the Eaton Common Shares.
CLASSIFICATION OF BOARD OF DIRECTORS
The Board of Directors of Eaton is divided into three approximately
equal classes, having staggered terms of office of three years each. The
effect of a classified Board of Directors, where cumulative voting is in
effect, is to require the votes of more shares to elect one or more members of
the Board of Directors than would be required if the Board of Directors were
not classified. Additionally, the effect of a classified Board of Directors
may be to make it more difficult to acquire control of Eaton.
CERTAIN OHIO STATUTES
Various laws may affect the legal or practical ability of shareholders
to dispose of shares of the Company. Such laws include the Ohio statutory
provisions described below.
Chapter 1704 of the Ohio Revised Code prohibits an interested
shareholder (defined as a beneficial owner, directly or indirectly, of ten
percent (10%) or more of the voting power of any issuing public Ohio
corporation) or any affiliate or associate of an interested shareholder (as
defined in Section 1704.01 of the Ohio Revised Code) from engaging in certain
transactions with the corporation during the three-year period after the
interested shareholder's share acquisition date. The prohibited transactions
include mergers, consolidations, majority share acquisitions, certain asset
sales, loans, certain sales of shares, dissolution, and certain
reclassifications, recapitalizations, or other transactions that would increase
the proportion of shares held by the interested shareholder. After expiration
of the three-year period, the corporation may participate in such a transaction
with an interested shareholder only if, among other things, (i) the transaction
receives the approval of the holders of two-thirds of all the voting shares and
the approval of the holders of a majority of
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<PAGE> 16
the disinterested voting shares (shares not held by the interested shareholder)
or (ii) the transaction meets certain criteria designed to ensure that the
remaining shareholders receive fair consideration for their shares. The
prohibitions do not apply if, before the interested shareholder becomes an
interested shareholder, the board of directors of the corporation approves
either the interested shareholder's acquisition of shares or the otherwise
prohibited transaction. The restrictions also do not apply if a person
inadvertently becomes an interested shareholder or was an interested
shareholder prior to the adoption of the statute on April 11, 1990, unless,
subject to certain exceptions, the interested shareholder increases his, her or
its proportionate share interest on or after April 11, 1990.
Pursuant to Ohio Revised Code Section 1707.043, a public corporation
formed in Ohio may recover profits that a shareholder makes from the sale of
the corporation's securities within eighteen (18) months after making a
proposal to acquire control or publicly disclosing the possibility of a
proposal to acquire control. The corporation may not, however, recover from a
person who proves in a court of competent jurisdiction either (i) that his, her
or its sole purpose in making the proposal was to succeed in acquiring control
of the corporation and there were reasonable grounds to believe that such
person would acquire control of the corporation or (ii) such person's purpose
was not to increase any profit or decrease any loss in the stock and the
proposal did not have a material effect on the market price or trading volume
of the stock. Also, before the corporation may obtain any recovery, the
aggregate amount of the profit realized by such person must exceed $250,000.
Any shareholder may bring an action on behalf of the corporation if a
corporation fails or refuses to bring an action to recover these profits within
sixty (60) days of a written request. The party bringing such an action may
recover his, her or its attorneys' fees if the court having jurisdiction over
such action orders recovery of any profits.
The Company is also subject to Ohio's Control Share Acquisition Act
(Ohio Revised Code Section 1701.831). The Control Share Acquisition Act
provides that, with certain exceptions, a person may acquire beneficial
ownership of shares in certain ranges (one-fifth or more but less than
one-third, one-third or more but less than a majority, or a majority or more)
of the voting power of the outstanding shares of an Ohio corporation meeting
certain criteria, which the Company meets, only if such person has submitted an
"acquiring person statement" and the proposed acquisition has been approved by
the vote of a majority of the shares of the corporation represented at a
special meeting called for such purpose and by a majority of such shares of the
corporation excluding "interested shares," as defined in Section 1701.01 of the
Ohio Revised Code.
- 14 -
<PAGE> 17
PLAN OF DISTRIBUTION
--------------------
The purpose of this Prospectus is to permit the Selling Shareholders
to offer for sale or to sell their Shares at such time and at such prices as
they, in their sole discretion, choose. The Company will not receive any
proceeds from these offerings or sales.
The distribution of shares by the Selling Shareholders, if any, may be
effected from time to time in one or more transactions (which may include block
transactions) on the open market in ordinary brokerage transactions on the New
York Stock Exchange, the Chicago Stock Exchange, the Pacific Stock Exchange, or
the London Stock Exchange (on each of which the Eaton Common Shares are
listed), in privately negotiated transactions, or in a combination of such
methods of sale, at market prices prevailing at the time of sale, at prices
related to such prevailing market prices or at prices otherwise negotiated.
The Selling Shareholders may effect such transactions by selling shares to or
through broker-dealers, and such broker-dealers may receive compensation in the
form of underwriting discounts, concessions or commissions from the Selling
Shareholders and/or the purchasers of Shares for whom such broker-dealers may
act as agent. The Selling Shareholders and any broker-dealers that participate
in the distribution of the Shares may be deemed to be "underwriters" within the
meaning of Section 2(11) of the Securities Act and any commission received by
them and any profit on the resale of Shares sold by them may be deemed to be
underwriting discounts and commissions.
Pursuant to an Agreement Among Shareholders (the "Shareholder
Agreement"), dated November 15, 1994 among all of the Selling Shareholders,
each Selling Shareholder agreed not to sell, exchange, or otherwise dispose of
the Shares before November 16, 1997, if such disposition would reduce the fair
market value of the Eaton Common Shares (determined at November 16, 1994)
retained by that Selling Shareholder to an amount less than fifty percent (50%)
of the fair market value of the Lectron Common Shares held by that Selling
Shareholder immediately before the Merger.
One or more supplemental prospectuses will be filed pursuant to Rule
424 under the Securities Act to describe any material arrangement for the
resale of the Shares, if and when such arrangements are entered into by the
Selling Shareholders and any broker-dealers that participate in the
distribution of the Shares.
To the extent necessary to comply with certain state securities laws,
if applicable, the Selling Shareholders have advised the Company that the
Shares will be sold in such jurisdictions only through registered or licensed
brokers or dealers. In addition, in certain states the Shares may not be
offered for sale or sold unless the Shares have been registered or qualified
for sale in such states or an exemption from registration or qualification is
available and complied with.
- 15 -
<PAGE> 18
LEGAL MATTERS
-------------
The validity of the Shares will be passed upon for the Company by G.
L. Gherlein, Executive Vice President and General Counsel of the Company.
EXPERTS
-------
The consolidated financial statements of the Company and its
subsidiaries appearing in the Company's Annual Report on Form 10-K for the year
ended December 31, 1994 have been audited by Ernst & Young LLP, independent
auditors, as set forth in their report thereon included therein and
incorporated herein by reference. Such consolidated financial statements are
incorporated herein by reference in reliance upon such report given upon the
authority of such firm as experts in accounting and auditing.
- 16 -
<PAGE> 19
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The Company will bear the entire cost of the estimated expenses, as
set forth in the following table, in connection with the distribution of the
securities covered by this Registration Statement.
<TABLE>
<S> <C>
SEC registration fee . . . . . . . . . . . . . $27,622.41
Legal fees and expenses . . . . . . . . . . . . 7,000.00
Accounting fees and expenses . . . . . . . . . 20,000.00
Miscellaneous . . . . . . . . . . . . . . . . . 600.00
----------
Total . . . . . . . . . . . . . . . . . . . $55,222.41
==========
</TABLE>
The Company shall be responsible for the payment of any additional
expenses in connection with this Registration Statement other than (a)
underwriting discounts and commissions and (b) transfer taxes incurred by the
Selling Shareholders or their agent, including fees and expenses of counsel and
accountants for the Selling Shareholders.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Paragraph (E) of Section 1701.13 of the Ohio Revised Code grants each
corporation organized under the laws of the State of Ohio, such as the Company,
power to indemnify its directors, officers and other specified persons.
Provisions relating to indemnification of directors and officers of the Company
and other specified persons have been adopted pursuant to the Ohio law and are
contained in Article IV, Section 2 of the Company's Amended Regulations. Under
the Amended Regulations, the Company shall indemnify any director, officer or
other specified person against expenses, including attorneys' fees, judgments,
fines and amounts paid in settlement, actually and reasonably incurred by him
by reason of the fact that he is or was such director, officer or other
specified person, to the full extent permitted by applicable law. The
foregoing statement is subject to, and only part of, the detailed provisions of
the Ohio Revised Code and the Company's Amended Regulations referred to herein.
The Company has entered into Indemnification Agreements with all of
its officers and directors. The Agreements provide that the Company shall
indemnify such directors or officers to the full extent permitted by law
against expenses actually and reasonably incurred by them in connection with
any claim filed against them by reason of anything done or not done by them in
such capacity. The Agreements also require the Company to maintain
II-1
<PAGE> 20
director and officer insurance which is no less favorable to the director and
officer than the insurance in effect on the date of the Agreements, and to
establish and maintain an escrow account of up to $10 million to fund the
Company's obligations under the Agreements, except that the Company is required
to fund the escrow only upon the occurrence of a change of control of the
Company, as defined under the Agreements.
The Company also maintains insurance coverage for the benefit of
directors and officers with respect to many types of claims that may be made
against them, some of which claims may be in addition to those described in
Section 2 of Article IV of the Amended Regulations.
ITEM 16. EXHIBITS
See Index to Exhibits.
ITEM 17. UNDERTAKINGS
(a) The undersigned registrant hereby undertakes:
(1) to file, during any period in which offers or sales are
being made, a post-effective amendment to this Registration Statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration
statement (or the most recent post-effective
amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the
information set forth in the registration statement;
(iii) To include any material information with respect to
the plan of distribution not previously disclosed in
the registration statement or any material change to
such information in the registration statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the
registration statement is on Form S-3 or Form S-8, and the information required
to be included in a post-effective amendment by those paragraphs is contained
in periodic reports filed by the
II-2
<PAGE> 21
registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange
Act of 1934 that are incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective amendment
shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering
thereof.
(3) To remove from registration by means of a
post-effective amendment any of the securities being registered which
remain unsold at the termination of the offering.
(b) The undersigned registrant hereby undertakes that,
for purposes of determining any liability under the Securities Act of 1933,
each filing of the registrant's annual report pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (and, where applicable, each
filing of an employee benefit plan's annual report pursuant to Section 15(d) of
the Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.
II-3
<PAGE> 22
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form S-3 and has duly caused this
Amendment No. 1 to Form S-3 Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Cleveland, State
of Ohio, on May 16, 1995.
EATON CORPORATION
By: /s/ G.L. Gherlein
-------------------------
G.L. Gherlein
Executive Vice President
and General Counsel
Pursuant to the requirements of the Securities Act of 1933, this
Amendment No. 1 to Form S-3 Registration Statement has been signed by the
following persons in the capacities and on the date indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
* Chairman and Chief Executive May 16, 1995
- ------------------------ Officer; Principal Executive
William E. Butler Officer; Director
* President and Chief Operating May 16, 1995
- ------------------------ Officer-Vehicle Components;
John S. Rodewig Director
* Vice Chairman and Chief Financial May 16, 1995
- ------------------------ and Administrative Officer;
Stephen R. Hardis Principal Financial Officer;
Director
</TABLE>
II-4
<PAGE> 23
<TABLE>
<S> <C> <C>
* Executive Vice President and May 16, 1995
- ------------------------ Chief Operating Officer-Controls;
Alexander M. Cutler Director
* Vice President-Accounting; May 16, 1995
- ------------------------ Principal Accounting Officer
Ronald L. Leach
* Director May 16, 1995
- ------------------------
Neil A. Armstrong
* Director May 16, 1995
- ------------------------
Phyllis B. Davis
* Director May 16, 1995
- ------------------------
Charles E. Hugel
* Director May 16, 1995
- ------------------------
John R. Miller
* Director May 16, 1995
- ------------------------
Furman C. Moseley
* Director May 16, 1995
- ------------------------
Victor A. Pelson
* Director May 16, 1995
- ------------------------
A. William Reynolds
* Director May 16, 1995
- ------------------------
Gary L. Tooker
*By: /s/ G.L. Gherlein
--------------------------------
G.L. Gherlein
Attorney-in-Fact for the
officers and directors
signing in the capacities
indicated
</TABLE>
II-5
<PAGE> 24
<TABLE>
EXHIBIT INDEX
-------------
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
4(a)* Amended Articles of Incorporation of Eaton Corporation, filed as Exhibit 3(i) to Form
8-K dated May 19, 1994 and incorporated herein by reference.
4(b)* Amended Regulations of Eaton Corporation, filed as Exhibit (a)(3)3 to Form 10-K for
the year ended December 31, 1994 and incorporated herein by reference.
4(c)* Instruments defining rights of security holders, including indentures (pursuant to
Regulation S-K Item 601(b)(4), the Company agrees to furnish to the Commission, upon
request, a copy of the instruments defining the rights of holders of long-term debt of
the Company and its subsidiaries).
5* Opinion of G. L. Gherlein, Executive Vice President and General Counsel, as to the
validity of the Common Shares registered.
23(a)* Consent of Ernst & Young LLP.
23(b)* Consent of G. L. Gherlein, Executive Vice President and General Counsel, contained
in his opinion filed as Exhibit 5 to this Registration Statement.
24* Power of Attorney.
<FN>
_________________________
* Previously filed with the Commission as Exhibits with the same respective numbers to
Eaton Corporation's Registration Statement on Form S-3, filed with the Commission on
March 29, 1995.
</TABLE>
II-6
