UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
Thomas, Patrick L.
Sundstrand Corporation
4949 Harrison Avenue
P.O. Box 7003
Rockford, IL 61125-7003
U.S.A.
2. Issuer Name and Ticker or Trading Symbol
Sundstrand Corporation
SNS
3. IRS or Social Security Number of Reporting Person (Voluntary)
###-##-####
4. Statement for Month/Year
12/31/98
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
( ) Director ( ) 10% Owner (X) Officer (give title below) ( ) Other
(specify below)
Executive Vice President and Chief Operating Officer, Industrial
7. Individual or Joint/Group Filing (Check Applicable Line)
(X) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
<TABLE>
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Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
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1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
| Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership |
| | | | Beneficially |(D)or | |
| | | | | A/| | Owned at |Indir | |
| Date |Code|V| Amount | D | Price | End of Month |ect(I)| |
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<S> <C> <C> <C><C> <C> <C> <C> <C> <C>
Common Stock |10/01/|F(1)|V|259 |D |$45.0313 |--- | | |
|98 | | | | | | | | |
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Common Stock |10/01/|G(2)|V|541 |D |$45.0313 |--- | | |
|98 | | | | | | | | |
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Common Stock |12/01/|G(2)|V|1,800 |D |$54.00 |--- | | |
|98 | | | | | | | | |
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Common Stock |12/08/|J(3)| |14,400 |D(3|N/A(3) |22,065.9375 |D |--- |
|98 | | | |) | | | | |
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| | |V| | | |7,838 |I |Owned by Spouse |
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<CAPTION>
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Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
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1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva- | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity |Date |Code|V| Amount | |ble | | | |Month |(I)| |
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<S> <C> <C> <C> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Restricted Stock Unit |$0.00 |12/08|J(3)|V|14,400 |A | | |Common Stock|14,400 | |--- | | |
| |/98 | | | | | | | | | | | | |
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Restricted Stock Unit |$0.00 |12/08|A(4)|V|7,000 |A | | |Common Stock|7,000 | |21,400 |D |--- |
| |/98 | | | | | | | | | | | | |
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Employee Nonqualified |$50.5938|12/08|A(5)|V|35,000 |A |(5) |12/08|Common Stock|35,000 | |106,750 |D |--- |
Stock Option (Right to| |/98 | | | | | |/08 | | | | | | |
Buy)w/Tandem Withhold| | | | | | | | | | | | | | |
ing Right | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | |
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</TABLE>
Explanation of Responses:
(1)Shares withheld to pay taxes on vesting of restricted stock pursuant to
exercise of tax withholding right under the Sundstrand Corporation Stock
Incentive Plan in transaction exempt under old Rule
16b-3.
(2)Gift of shares to Reporting Person's
spouse.
(3)All of the Reporting Person's outstanding restricted stock under the
Company's 1989 Restricted Stock Plan was converted to restricted stock units
under that
Plan.
(4)Award of restricted stock units under the Company's Stock Incentive Plan in
transaction exempt under Section 16b-3(d). A restricted stock unit
entitles the holder to receive one share of the Company's Common Stock when the
restrictions lapse and the unit has become payable. Restrictions
lapse on 20% of the restricted stock units in each of the fifth through ninth
anniversary dates of the grant.
(5)Grant to the Reporting Person of 35,000 options to buy Common Stock under
the Company's Stock Incentive Plan in transaction exempt under Rule
16b-3(d). Options become exercisable at the rate of 25% of each grant on the
second through fifth anniversary dates of December 8, 1998. The tax
withholding right permits a participant to elect, subject to the approval of
the Compensation Committee, to satisfy the tax withholding requirement, in
whole or in part, by having the Company withhold shares equal to the tax. Of
the remaining 71,750 options held by the Reporting Person, 2,250 first
became exercisable on each of December 1, 1995, December 1, 1996, and December
1, 1997, all with an exercise price of $19.3125 and an expiration
date of December 1, 2002; 2,500 options first became exercisable on each of
November 15, 1996, November 15, 1997, and November 15, 1998, and
2,500 options will become exercisable on November 15, 1999, all with an
exercise price of $22.375 and an expiration date of November 15, 2004;
6,250 options first became exercisable on November 19, 1998, and 6,250 will
become exercisable on each of November 19, 1999, November 19, 2000,
and November 19, 2001, all with an exercise price of $38.9375 and an expiration
date of November 19, 2006; and 7,500 options will become
exercisable on each of November 18, 1999, November 18, 2000, November 18, 2001,
and November 18, 2002, all with an exercise price of $51.3125
and an expiration date of November 18, 2007. All of the nonexercisable stock
options, in the event of a "Change of Control" as defined in the Plan
under which they were granted, may become immediately exercisable unless
specifically prohibited by the terms of applicable law.
