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
Fellows, DeWayne J
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)
Vice President and Controller
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>
<CAPTION>
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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 |12/01/|F | |508 |D |$54.00 |--- |D |--- |
|98 | | | | | | | | |
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Common Stock |12/08/|J(1)|V|10,000 |D(1|N/A(1) |14,992 |D |--- |
|98 | | | |) | | | | |
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| | | | | | |3,320 |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(1)|V|10,000 |A | | |Common Stock|10,000 | |--- |D |--- |
| |/98 | | | | | | | | | | | | |
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Restricted Stock Unit |$0.00 |12/08|A(2)|V|2,500 |A | | |Common Stock|2,500 | |12,500 |D |--- |
| |/98 | | | | | | | | | | | | |
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Employee Nonqualified |$50.5938|12/08|A(3)|V|11,000 |A |(3) |(3) |Common Stock|11,000 | |35,000 |D |--- |
Stock Option (Right to| |/98 | | | | | | | | | | | | |
Buy)w/Tandem Withhohl| | | | | | | | | | | | | | |
ding Righ | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | |
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</TABLE>
Explanation of Responses:
(1)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.
(2)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 on
each of the fifth through ninth anniversary dates of the
grant.
(3)Grant to the Reporting Person of 11,000 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
24,000 remaining stock options held by
the Reporting Person, 3,000 options became exercisable on November 15, 1998,
and 3,000 will become
exercisable on November 15, 1999, all with an exercise price of $22.375 and an
expiration date of November 15,
2004; 2,000 options became exercisable on November 19, 1998, and 2,000 will
become exercisable on 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 2,500 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.
