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
Traubenberg, Neil D.
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, Tax
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(1)| |324 |D |$51.50 |--- | | |
|97 | | | | | | | | |
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Common Stock |12/19/| |V|7.0436 |A |$51.813 |--- | | |
|97 | |(| | | | | | |
| | |2| | | | | | |
| | |)| | | | | | |
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Common Stock |03/20/| |V|8.1537 |A |$59.00 |--- | | |
|98 | |(| | | | | | |
| | |2| | | | | | |
| | |)| | | | | | |
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Common Stock |06/19/| |V|8.5485 |A |$56.438 |--- | | |
|98 | |(| | | | | | |
| | |2| | | | | | |
| | |)| | | | | | |
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Common Stock |09/22/| |V|11.2374 |A |$43.0635 |--- | | |
|98 | |(| | | | | | |
| | |2| | | | | | |
| | |)| | | | | | |
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Common Stock |12/01/|F(1)| |344 |D |$54.00 |--- | | |
|98 | | | | | | | | |
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Common Stock |12/18/| |V|10.2819 |A |$47.25 |6,624.0441 |D |--- |
|98 | |(| | | | | | |
| | |2| | | | | | |
| | |)| | | | | | |
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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|A(3)|V|1,200(3) |A | | | Common Stoc|1,200 | |1,200 |D |--- |
| |/98 | | | | | | |k | | | | | |
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Employee Nonqualified |$50.5938|12/08|A(4)|V|5,000 |A |(4) |12/08|Common Stock|5,000 | |16,000 |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)Acquisition by Reporting Person pursuant to dividend reinvestment on
Sundstrand stock held in account with
Smith
Barney.
(3)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.
(4)Grant to the Reporting Person of 5,000 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 11,000 stock options held by
the Reporting Person, 625 first became exercisable on each of December 1, 1994,
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; 625 options first became exercisable on each of November 15, 1996,
November 15, 1997, and November
15, 1998, and 625 options will become exercisable on November 15, 1999, all
with an exercise price of $22.375
and an expiration date of November 15, 2004; 750 options first became
exercisable on November 19, 1998, and
750 options 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 750 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.
