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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000101829-03-000220.txt : 20030630
<SEC-HEADER>0000101829-03-000220.hdr.sgml : 20030630
<ACCEPTANCE-DATETIME>20030630172609
ACCESSION NUMBER:		0000101829-03-000220
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20021231
FILED AS OF DATE:		20030630

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNITED TECHNOLOGIES CORP /DE/
		CENTRAL INDEX KEY:			0000101829
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT ENGINES & ENGINE PARTS [3724]
		IRS NUMBER:				060570975
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-00812
		FILM NUMBER:		03765595

	BUSINESS ADDRESS:	
		STREET 1:		UNITED TECHNOLOGIES BLDG
		STREET 2:		ONE FINANCIAL PLZ
		CITY:			HARTFORD
		STATE:			CT
		ZIP:			06101
		BUSINESS PHONE:		2037287000

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNITED TECHNOLOGIES MICROELECTRONICS CENTER
		DATE OF NAME CHANGE:	19850825

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNITED TECHNOLOGIES CORP
		DATE OF NAME CHANGE:	19841205
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>planiistmt.htm
<TEXT>
<HTML>

<head>
<TITLE>planIIstmt</TITLE>
</head>

<body>

<p><font FACE="Arial" SIZE="2"><b><img SRC="image7.gif" width="543" height="90"></b></p>
</font><b><font FACE="Courier New" SIZE="2">

<p></font></b>&nbsp;</p>

<p align="center"><b><font FACE="Arial" SIZE="2">FORM 11-K</font></b></p>

<p align="center"><b><font FACE="Arial" SIZE="2">ANNUAL REPORT PURSUANT TO SECTION 15(d)<br>
OF THE SECURITIES EXCHANGE ACT OF 1934<br>
For the Plan period ended December 31, </font></b><b><font face="Arial" size="2">2002</font></b></p>
<b><font FACE="Arial" SIZE="2">

<p align="center">&nbsp;Commission File Number 1-812</p>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II</p>

<p align="center">&nbsp;</p>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
One Financial Plaza<br>
Hartford, Connecticut 06103</p>
</font>

<hr>
<font SIZE="2">

<p align="center"><font face="Arial">UNITED TECHNOLOGIES CORPORATION EMPLOYEE
SAVINGS PLAN II<br>
</font><font face="Arial" size="2">Index to Financial Statements<br>
December 31, 2002 and 2001</font></p>
<p align="center">&nbsp;</p>
<div align="center">
  <center>
<table border="0" width="80%" style="font-family: Arial; font-size: 10pt">
  <tr>
    <td width="78%" colspan="2" height="18"></td>
    <td width="22%" height="18">
      <p align="center"><b>Page</b></td>
  </tr>
  <tr>
    <td width="78%" colspan="2" height="15"><a href="#aud rpt">Report of Independent Auditors</a></td>
    <td width="22%" height="15" align="center">1</td>
  </tr>
  <tr>
    <td width="7%" height="18"></td>
    <td width="71%" height="18"></td>
    <td width="22%" height="18" align="center"></td>
  </tr>
  <tr>
    <td width="78%" colspan="2" height="18">Financial Statements</td>
    <td width="22%" height="18" align="center"></td>
  </tr>
  <tr>
    <td width="7%" height="18"></td>
    <td width="71%" height="18"><a href="#net assets">Statements of Net Assets Available for Benefits</a></td>
    <td width="22%" height="18" align="center">2</td>
  </tr>
  <tr>
    <td width="7%" height="18"></td>
    <td width="71%" height="18"><a href="#chgs net assets">Statement of Changes in Net Assets Available for Benefits</a></td>
    <td width="22%" height="18" align="center">3</td>
  </tr>
  <tr>
    <td width="7%" height="18"></td>
    <td width="71%" height="18"><a href="#notes">Notes to Financial Statements</a></td>
    <td width="22%" height="18" align="center">4 - 12</td>
  </tr>
  <tr>
    <td width="78%" height="18" colspan="2"><a href="#EXHIBIT INDEX">Exhibit
      Index</a></td>
    <td width="22%" height="18" align="center">14</td>
  </tr>
</table>

  </center>
</div>

<hr>

<p align="center"></font><font FACE="Arial" SIZE="2"><a name="aud rpt">FINANCIAL STATEMENTS OF THE UNITED
TECHNOLOGIES CORPORATION<br>
</a>
EMPLOYEE SAVINGS PLAN II</font><font SIZE="2"></p>
</font><font FACE="Arial" SIZE="2">

<p align="center">Report of Independent Auditors</p>

<p align="left">&nbsp;</p>

</font></b>

<p><font FACE="Arial" SIZE="2">To the Participants and Administrator of the<br>
&nbsp; United Technologies Corporation<br>
&nbsp; Employee Savings Plan II</font></p>
<font FACE="Arial" SIZE="2">

<p align="JUSTIFY"><font FACE="Arial" SIZE="2">In our opinion, the accompanying
statements of net assets available for benefits and the related statement of
changes in net assets available for benefits present fairly, in all material
respects, the net assets available for benefits of the United Technologies
Corporation Employee Savings Plan II (the "Plan") at December 31, 2002 and December 31,
2001, and the changes in net assets available for benefits for
the year ended December 31, 2002 in conformity with accounting principles
generally accepted in the United States of America. These financial statements are the responsibility of the Plan's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We
conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
</p>
</font><font FACE="Courier New" SIZE="2">

<p></font><font face="Arial" size="2">&nbsp;/s/ PricewaterhouseCoopers LLP<br>
PricewaterhouseCoopers LLP<br>
Hartford, Connecticut<br>
June 27, 2003&nbsp;</font></p>

<p align="center">1</p>

<hr>
<b><font FACE="Courier New" SIZE="2">

<p align="center"></font><font FACE="Arial" SIZE="2"><a name="net assets">UNITED TECHNOLOGIES
CORPORATION EMPLOYEE SAVINGS PLAN II<br>
</a>
Statements of Net Assets Available for Benefits<br>
</font>
</b><font FACE="Arial" SIZE="2">(Thousands of Dollars)</p>

</font>

<p>&nbsp;</p>

<div align="center">
  <center>

<table CELLSPACING="0" BORDER="0" width="80%" cellpadding="2" height="227">
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="36"></td>
    <td WIDTH="3%" VALIGN="TOP" height="36"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center" style="border-bottom-style: solid" height="36"><b><font FACE="Arial" SIZE="2">December 31,<br>
      2002 </font></b></td>
    <td WIDTH="6%" VALIGN="TOP" align="center" height="36"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center" style="border-bottom-style: solid" height="36"><b><font FACE="Arial" SIZE="2">December 31,<br>
      2001</font></b></td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="20"><b><font FACE="Arial" SIZE="2">Assets:</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" height="20"></td>
    <td WIDTH="18%" VALIGN="TOP" height="20"></td>
    <td WIDTH="6%" VALIGN="TOP" height="20" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" height="20"></td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp; Investments (Notes <a href="#NOTE 3 - INVESTMENTS"> 3</a> through <a href="#NOTE 6 - INVESTMENT IN MASTER TRUST">6</a>)&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="18">
      <p align="right"><font face="Arial" size="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="18" align="right" style="font-family: Arial; font-size: 10pt">
    207,737<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</font>
    </td>
    <td WIDTH="6%" VALIGN="TOP" height="18" align="right"><font face="Arial" size="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="18" align="right" style="font-family: Arial; font-size: 10pt">
      <p align="right">159,493&nbsp;&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="1" style="font-family: Arial; font-size: 8pt"></td>
    <td WIDTH="3%" VALIGN="TOP" height="1" style="font-family: Arial; font-size: 8pt"></td>
    <td WIDTH="18%" VALIGN="TOP" height="1" style="font-family: Arial; font-size: 8pt" align="left"></td>
    <td WIDTH="6%" VALIGN="TOP" height="1" style="font-family: Arial; font-size: 8pt" align="left"></td>
    <td WIDTH="18%" VALIGN="TOP" height="1" style="font-family: Arial; font-size: 8pt" align="left"></td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt"><font FACE="Arial" SIZE="2">&nbsp;
      Contributions receivable:</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt"></td>
    <td WIDTH="18%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;
    Participants'</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt"></td>
    <td WIDTH="18%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 10pt" align="right">
    609<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</font>
    </td>
    <td WIDTH="6%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 10pt" align="right">41<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</font>
    </td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;
    Employer's</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt"></td>
  </font>
    <td WIDTH="18%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 10pt" align="right">
<font FACE="Arial" size="2">

&nbsp;&nbsp;130<font FACE="Arial">&nbsp;&nbsp;&nbsp;&nbsp;</font>
      </font>
    </td>
<font FACE="Arial" SIZE="2">

    <td WIDTH="6%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 8pt" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 10pt" align="right">&nbsp;&nbsp;15<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</font>
    </td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="20" style="font-family: Arial; font-size: 8pt"></td>
    <td WIDTH="3%" VALIGN="TOP" height="20" style="font-family: Arial; font-size: 8pt"></td>
  </font>
    <td WIDTH="18%" VALIGN="TOP" height="20" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: THIN; border-bottom-style: solid; border-bottom-width: THIN" align="right">
<font FACE="Arial" size="2">

&nbsp;&nbsp;739<font FACE="Arial">&nbsp;&nbsp;&nbsp;&nbsp;</font>
      </font>
    </td>
<font FACE="Arial" SIZE="2">

    <td WIDTH="6%" VALIGN="TOP" height="20" style="font-family: Arial; font-size: 8pt" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" height="20" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: THIN; border-bottom-style: solid; border-bottom-width: THIN" align="right">&nbsp;&nbsp;56<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</font>
    </td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="16" style="font-family: Arial; font-size: 8pt"></td>
    <td WIDTH="3%" VALIGN="TOP" height="16" style="font-family: Arial; font-size: 8pt"></td>
    <td WIDTH="18%" VALIGN="TOP" height="16" style="font-family: Arial; font-size: 8pt" align="left"></td>
    <td WIDTH="6%" VALIGN="TOP" height="16" style="font-family: Arial; font-size: 8pt" align="left"></td>
    <td WIDTH="18%" VALIGN="TOP" height="16" style="font-family: Arial; font-size: 8pt"></td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">Net Assets Available for Benefits</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="24"><p ALIGN="RIGHT"><font face="Arial" SIZE="2">$</font></td>
  </font>
    <td WIDTH="18%" VALIGN="TOP" style="border-bottom-style: double; border-bottom-width: thick" height="24" align="right">
<font FACE="Arial" size="2">

&nbsp;&nbsp;208,476<font FACE="Arial">&nbsp;&nbsp;&nbsp;&nbsp;</font>
      </font>
  </td>
<font FACE="Arial" SIZE="2">

    <td WIDTH="6%" VALIGN="TOP" height="24" align="right"><p ALIGN="RIGHT"><font face="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" style="border-bottom-style: double; border-bottom-width: thick" height="24"><p align="right"><font FACE="Arial" SIZE="2">
    &nbsp;&nbsp;159,549&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
</table>

  </center>
</div>

<font FACE="Courier New" SIZE="2">

<p></font><font FACE="Arial" SIZE="2">The accompanying notes are an integral part of these
financial statements.</font></p>

<p align="center">2</p>

<hr>
<b><font FACE="Courier New" SIZE="2">

<p align="center"></font><font FACE="Arial" SIZE="2"><a name="chgs net assets">UNITED TECHNOLOGIES
CORPORATION EMPLOYEE SAVINGS PLAN II<br>
</a>
Statement of Changes in Net Assets Available for Benefits<br>
</font>

</b><font FACE="Arial" SIZE="2">(Thousands of Dollars)
</font>

</p>

<font FACE="Arial" SIZE="2">

<div align="center">
  <center>

<table CELLSPACING="0" BORDER="0" WIDTH="78%" cellpadding="2" style="font-family: Arial; font-size: 10pt" height="653">
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="52"></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="52"></td>
    <td WIDTH="23%" VALIGN="TOP" align="center" height="52" style="border-bottom-style: solid"><font FACE="Arial" SIZE="2"><b>Year Ended<br>
      December 31,<br>
      &nbsp;2002</b></font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2"><b>Additions to net assets
    attributed to:</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">Investment Income:</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;
      Interest</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18">$</td>
    <td WIDTH="23%" align="right" height="18" style="font-family: Arial; font-size: 10pt">

    6,643<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;&nbsp;</font>

    </td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;
      Dividends </font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" align="right" height="18" style="font-family: Arial; font-size: 10pt">

    841<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;&nbsp;</font>

    </td>
  </tr>
</font>

  </font>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="1" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="left" height="1" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="23%" align="left" height="1" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 10pt">Contributions:</td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt"></td>
    <td WIDTH="23%" align="right" height="18" style="font-family: Arial; font-size: 10pt"></td>
  </tr>
  <tr>

    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;
      Participants'</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"><p ALIGN="RIGHT"></td>
    <td WIDTH="23%" align="right" height="18" style="font-family: Arial; font-size: 10pt">16,<font FACE="Arial" SIZE="2">107&nbsp;
      &nbsp;&nbsp;&nbsp;</font>

    </td>

  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;
      Employer's</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" align="right" height="18" style="font-family: Arial; font-size: 10pt">&nbsp;&nbsp;7,325<font FACE="Arial" SIZE="2">&nbsp;
      &nbsp;&nbsp;&nbsp;</font>

    </td>
  </tr>
</font>

<tr>
    <td WIDTH="74%" VALIGN="TOP" height="20">
<font face="Arial" size="2">

&nbsp;&nbsp;&nbsp;&nbsp; Total additions
</font>

  </td>
<font FACE="Arial" SIZE="2">

    <td WIDTH="3%" VALIGN="TOP" align="right" height="20"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="20" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin">&nbsp;&nbsp;30,91<font FACE="Arial" SIZE="2">6&nbsp;
      &nbsp;&nbsp;&nbsp;</font>

    </td>
  </tr>

</font>

  </font>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="5"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="left" height="5"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="23%" VALIGN="TOP" align="left" height="5" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2"><b>Deductions from net assets
    attributed to:</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt"></td>
  </tr>
  <tr>
    <td WIDTH="74%" height="18" style="font-family: Arial; font-size: 10pt">&nbsp;&nbsp; Net depreciation in
      fair value of investments</td>
    <td WIDTH="3%" align="right" height="18"></td>
    <td WIDTH="23%" align="right" height="18" style="font-family: Arial; font-size: 10pt">

    (18,909)<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;
    </font>

    </td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Distributions to
    participants </font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt">(15,963)<font FACE="Arial" SIZE="2">&nbsp;
      &nbsp;&nbsp;
    </font>

    </td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 10pt">&nbsp;&nbsp; Administrative
      expenses</td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt">(304)<font FACE="Arial" SIZE="2">&nbsp;
      &nbsp;&nbsp;
    </font>

    </td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Interest expense&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt">&nbsp;&nbsp;(226)<font FACE="Arial" SIZE="2">&nbsp;
      &nbsp;&nbsp;
    </font>

    </td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="20"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
      deductions</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="20"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="20" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin">&nbsp;&nbsp;(35,402)<font FACE="Arial" SIZE="2">&nbsp;
      &nbsp;&nbsp;
    </font>

    </td>
  </tr>
    </font>

</font>

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="2"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="left" height="2"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="23%" VALIGN="TOP" align="left" height="2" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">Net
      decrease prior to transfers</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    </center>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin">
      <p align="right">&nbsp;&nbsp;(4,486)<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;
    </font>

    </td>
  </tr>
  </font>

</font>

  <center>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="left" height="18"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="23%" VALIGN="TOP" align="left" height="18" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2"><b>Plan transfers:</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp; Assets transferred into Plan
      (Notes <a href="#NOTE 4 - NONPARTICIPANT-DIRECTED INVESTMENTS"> 4</a> and
      <a href="#NOTE 12 - PLAN TRANSFERS">12</a>)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt">

    56,<font FACE="Arial" SIZE="2">683&nbsp; &nbsp;&nbsp;&nbsp;</font>

    </td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">&nbsp; Assets transferred out of Plan</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
  </center>
    <td WIDTH="23%" align="right" height="18" style="font-family: Arial; font-size: 10pt">
      <p align="right">&nbsp;&nbsp;(3,270)<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;
    </font>

  </td>
  </tr>
  <center>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="20"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Net Plan
      transfers</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="20"></td>
    <td WIDTH="23%" VALIGN="TOP" height="20" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right">
      &nbsp;&nbsp;53,413<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;&nbsp;</font>

    </td>
  </tr>
    </font>

</font>

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="left" height="18"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="23%" VALIGN="TOP" align="left" height="18" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18" style="font-family: Arial; font-size: 10pt">Net Increase</td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt">

    48,927<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;&nbsp;</font>

    </td>
  </tr>
    </font>

</font>

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font face="Arial" size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="left" height="18"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="23%" VALIGN="TOP" align="left" height="18" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font FACE="Arial" SIZE="2">Net Assets Available for
    Benefits, December 31, 2001</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="18"></td>
  </center>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="18" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin">
      <p align="right">&nbsp;&nbsp;159,549<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;&nbsp;</font>

  </td>
  </tr>
</font>
  <center>
  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="18"><font face="Arial" size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="left" height="18"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="23%" VALIGN="TOP" align="left" height="18">
    <font face="Arial" size="1">&nbsp;&nbsp;</font>
    </td>
  </tr>
<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="74%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">Net Assets Available for
    Benefits, December 31, 2002</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" height="24"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
  </center>
    <td WIDTH="23%" VALIGN="TOP" align="right" height="24" style="border-bottom-style: double; border-bottom-width: thick">
      <p align="right">&nbsp;&nbsp;208,476<font FACE="Arial" SIZE="2">&nbsp; &nbsp;&nbsp;&nbsp;</font>

 </td>
  </tr>
</table>

</div>

<font FACE="Courier New" SIZE="2">

<p><font FACE="Arial" SIZE="2">The accompanying notes are an integral part of these
financial statements.</font></font></p>

<p align="center">3</p>
<b>

<font FACE="Courier New" SIZE="2">

<hr>

</font>

<p align="center"><a name="notes">UNITED TECHNOLOGIES CORPORATION<br>
</a>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>
</b><font FACE="Courier New" SIZE="2">

<p></font><b><font FACE="Arial" SIZE="2"><u>NOTE 1 - DESCRIPTION OF THE PLAN</u></p>

<p ALIGN="JUSTIFY">General.</font></b> <font FACE="Arial" SIZE="2"> The United Technologies Corporation Employee Savings Plan
II (formerly the UTC Savings Plan for Hourly Management-Represented Employees) (the
&quot;Plan&quot;) is a defined contribution savings plan administered by United
Technologies Corporation (&quot;UTC&quot;). It is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (&quot;ERISA&quot;). Both salaried
employees and non-union hourly employees of certain divisions of Carrier Corporation,
Hamilton Sundstrand, Pratt &amp; Whitney and Sikorsky Aircraft Corporation (&quot;Sikorsky&quot;) are
eligible to participate in the Plan immediately (except for one Sikorsky location with a
three-month waiting period).&nbsp; The date on which participants are eligible for employer
contributions may vary by the particular location. The following is a brief description of the Plan. For more
complete information, participants should refer to the prospectus and summary
plan description as well as the Plan document which are available
from UTC.</p>
<b>

<p ALIGN="JUSTIFY">Contributions and Vesting.</b> The percentages of total compensation
participants may elect to contribute, through payroll deductions, varies depending on the
provisions of the Plan specific to a particular location.&nbsp; Participants direct the
investment of their contributions into various investment options offered by the Plan. The
Plan currently offers ten mutual funds, seven commingled index funds, one stable value
fund, and a company stock fund as investment options for participants. Participant
contributions, plus actual earnings thereon, are fully vested at all times under the
Plan.&nbsp; Employer contributions vary depending on the provisions of the Plan
specific to a particular location.&nbsp; Generally, the Employer's contributions, plus actual earnings thereon,
become fully vested after two years of Plan participation.</p>

<p ALIGN="JUSTIFY">UTC has established a leveraged Employee
Stock Ownership Plan (&quot;ESOP&quot;) to fund substantially all of the employer matching contributions to the
Plan. The ESOP is primarily invested in UTC Series A ESOP Convertible Preferred Stock. UTC
currently matches up to 60 percent of a participant's contributions, up to specified limits, in ESOP
Preferred Stock (see Note <a href="#NOTE 7 - EMPLOYEE STOCK OWNERSHIP PLAN"> 7</a>). However, participants who have reached at least age 55 may
direct that up to 50 percent, in multiples of 25 percent, of their ESOP account balances and
future employer contributions be invested in the other investment funds offered through
the Plan. In such cases, UTC may redeem or exchange the ESOP Preferred Stock in the participants'
accounts for cash.&nbsp; Such stock may be allocated to other participants in the future. Generally, employer
contributions, plus actual earnings thereon, become fully vested after two years of Plan
participation.</p>

<p ALIGN="JUSTIFY"><b>Participant Accounts</b><strong>.</strong> Each participant&#146;s
account is credited with the participant's contributions and allocations of (a) UTC&#146;s
contributions based on a percentage of the participant&#146;s contribution and (b) Plan
earnings based on account balances. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's vested account. Forfeited balances of
terminated participants' nonvested employer contribution accounts are used to reduce future Employer
contributions. For the year ended December 31, 2002, approximately $65,000
of forfeitures
were used to fund UTC's contributions.</p>

<p ALIGN="JUSTIFY"><b><font face="sans-serif" size="2">Voting Rights</font></b></font></font><b><font face="sans-serif" size="2">.</font></b><font FACE="Arial" SIZE="2"><b>&nbsp;
</b><font face="sans-serif" size="2">Common Stock held in the UTC Common Stock
Fund and ESOP Fund </font>
</font>
<font face="sans-serif" size="2">and ESOP Preferred shares </font><font face="sans-serif" size="2"><font FACE="Arial" SIZE="2">are voted by the Trustee at shareowner meetings of UTC in
accordance with the confidential instructions of the participants whose accounts
are invested in the funds. &nbsp;ESOP Preferred shares vote on all matters
submitted for vote to the UTC Common Stock shareowners. &nbsp;Each share of ESOP
Preferred stock is entitled to 5.2 votes compared to one vote for each share of
UTC Common Stock. &nbsp;All shares of employer stock in the UTC Common Stock Fund or participants'
ESOP accounts for which the Trustee receives voting instructions from
participants to whose accounts the shares are allocated
</font>
are</font><font face="sans-serif" size="2"><font FACE="Arial" SIZE="2"> voted in
accordance with those instructions. &nbsp;All employer stock in the UTC Common
Stock Fund for which the Trustee does not receive timely voting instructions
</font>
are </font><font face="sans-serif" size="2"><font FACE="Arial" SIZE="2">voted by the Trustee in accordance with the timely instructions it
receives with respect to a plurality of the shares in the UTC Common Stock Fund.
&nbsp;All employer stock in the ESOP Fund that has been allocated to
participants' ESOP accounts but for which the Trustee does not receive timely
voting instructions, and all shares in the Unallocated ESOP account,
</font>
are </font><font FACE="Arial" SIZE="2"><font face="sans-serif" size="2">voted by the Trustee in accordance with the timely instructions it receives with
respect to a plurality of the shares that are allocated to participants' ESOP
accounts.</font></p>

<p ALIGN="center">4</p>
<hr>
<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>
</b>

<p ALIGN="center">&nbsp;</p>
<b>

<p ALIGN="JUSTIFY">Trustee and Recordkeeper.</b> All of the Plan's assets are held by
Deutsche Bank Trust Company Americas, the Plan trustee. Deutsche Bank Trust
Company Americas is a
subsidiary of Deutsche Bank.&nbsp; Fidelity Institutional Retirement Services Company
(&quot;Fidelity&quot;) performs participant account recordkeeping responsibilities.<b></p>

<p ALIGN="JUSTIFY">Participant Loans.</b> Certain participants with at least two years of
Plan participation are allowed to borrow up to 50 percent of their account balances,
excluding employer contributions. Loan amounts can range from $1,000 to $50,000 and must
be repaid within 5 years. The loans are secured by the balance in the participant's
account and bear interest at Deutsche Bank's prime rate plus one percent. Principal and
interest are paid ratably through payroll deductions.</p>
<b>

<p ALIGN="JUSTIFY">Payment of Benefits.</b> Generally, benefits are paid in a lump sum to
a terminating participant. A participant terminating due to retirement may elect to
receive benefits in installments over two to twenty years. At the participant's election,
the portion of a lump sum distribution attributable to an investment in the UTC Common
Stock Fund and ESOP investment options may be paid in shares of UTC Common Stock instead of
cash. Distributions in UTC Common Stock for the year ended December 31, 2002 were
approximately $60,000.</p>
<b>

<p ALIGN="JUSTIFY">Other.</b> Participants who transfer to a new UTC location with a
different savings plan may have the option of transferring their account balances in
accordance with the provisions of the new savings plan.<b><u></p>

<p>NOTE 2 - SUMMARY OF ACCOUNTING PRINCIPLES</u></p>

<p ALIGN="JUSTIFY">Basis of Accounting</b>. The financial statements of the Plan are
prepared under the accrual method of accounting, except for benefits which are recorded
when paid.</p>
<b>

<p ALIGN="JUSTIFY">Master Trust.</b> The Plan's assets are kept in the United
Technologies Corporation Employee Savings Plan Master Trust (the &quot;Master
Trust&quot;) maintained by the Plan's trustee. Under the Master Trust agreement, the assets of certain
employee savings plans of UTC and its subsidiaries are combined. Participating plans
purchase units of participation in the investment funds based on their contribution to
such funds and the unit value of the applicable investment fund at the end of the trading
day in which a transaction occurs. The unit value of each fund is determined at the close
of each day by dividing the sum of uninvested cash, accrued income and the current value
of investments by the total number of outstanding units in such funds. Income from the
funds' investments increases the participating plans' unit values. Distributions to
participants reduce the number of participation units held by the participating plans (See
<a href="#NOTE 6 - INVESTMENT IN MASTER TRUST">
Note 6</a>).</p>
<b>

<p ALIGN="JUSTIFY">Investment Valuation and Income Recognition</b>. The Income Fund's
investments in insurance contracts (see <a href="#NOTE 5 - INVESTMENT CONTRACTS WITH INSURANCE COMPANIES"> Note
5</a>) are stated at contract value, which represents fair value.&nbsp;
Contract value includes contributions plus earnings, less Plan withdrawals. The ESOP Preferred
Stock&#146;s fair value is the higher of the guaranteed value ($65) or four times the
daily ending price of UTC&#146;s Common Stock. All other funds are stated at fair value,
as determined by the Plan trustee, typically by reference to published market data.</p>

<p>Purchases and sales of securities are recorded on a trade-date basis. Dividends are
recorded on the ex-dividend date.</p>

<p><b>Reclassifications.&nbsp; </b>Certain reclassifications have been made to
prior year amounts to conform to the current year presentation.</p>

<p align="center">5</p>
<hr>
<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>
</b>
<b>

<p ALIGN="JUSTIFY">Plan Expenses</b>. Plan administrative expenses, including
Plan trustee
and a portion of the recordkeeper fees were paid directly by the employer in 2002.
The remaining recordkeeper fees were paid by participants in 2002.&nbsp; Investment management fees are charged
against Plan assets. All other administrative and investment expenses were paid
out of Plan assets during 2002.<b></p>

<p ALIGN="JUSTIFY">Use of Estimates.</b> The preparation of financial statements requires
Plan management to make estimates and assumptions that affect the reported amounts in the
financial statements. Actual results could differ from those estimates.<font
FACE="Courier New" SIZE="2"></p>

<p></font><font FACE="Arial" SIZE="2"><u><b><a name="NOTE 3 - INVESTMENTS">NOTE 3 - INVESTMENTS</a></b></u></p>

<p ALIGN="JUSTIFY">The following presents investments that represent 5 percent or more of
the Plan's net assets:</p>

<table CELLSPACING="0" BORDER="0" cellpadding="2" style="font-family: Arial; font-size: 10pt" height="238">
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="18"></td>
    <td WIDTH="29" VALIGN="TOP" height="18"></td>
    <td WIDTH="262" VALIGN="TOP" colspan="3" height="18">
      <p align="center"><b>December 31,</b></td>
  </tr>
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="20"><font face="Arial" size="1">(Thousands of Dollars, except
    unit amounts)</font></td>
    <td WIDTH="29" VALIGN="TOP" height="20"></td>
    <td WIDTH="106" style="border-bottom-style: solid" height="20">
      <p align="center"><b>2002</b></p>
    </td>
    <td WIDTH="30" VALIGN="TOP" align="center" height="20"></td>
    <td WIDTH="118" style="border-bottom-style: solid" height="20">
      <p align="center"><b>2001</b></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="2"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="29" VALIGN="TOP" height="2"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="2"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="30" VALIGN="TOP" height="2"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="116" height="2"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="18"><font FACE="Arial" size="2">Equity Fund,
      1,321,534 and
      944,051 units, respectively</font></td>
    <td WIDTH="29" VALIGN="TOP" height="18"><font FACE="Arial" size="2"><p ALIGN="RIGHT">
    $</font></td>
    <td WIDTH="104" height="18" align="right">
    27,065<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
</font>
    </td>
    <td WIDTH="30" VALIGN="TOP" height="18">
      <p align="right"><font size="2">$</font></p>
    </td>
    <td WIDTH="104" height="18">
      <p align="right">24,789&nbsp;&nbsp;&nbsp;&nbsp;</td>
  </tr>
</font>
</font>
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="29" VALIGN="TOP" height="7">
<font FACE="Arial" size="1">

  &nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="7" align="right">
      <p align="left">
<font FACE="Arial" size="1">

  &nbsp;&nbsp;</font></td>
    <td WIDTH="30" VALIGN="TOP" height="7">
<font FACE="Arial" size="1">

  &nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="7">
<font FACE="Arial" size="1">

  &nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="384" VALIGN="TOP" height="18"><font FACE="Arial" size="2">Income Fund,&nbsp;1,162,858 and
      906,934 units, respectively</font></td>
    <td WIDTH="29" VALIGN="TOP" height="18"></td>
    <td WIDTH="104" height="18" align="right">
    105,378<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
</font>
    </td>
    <td WIDTH="30" VALIGN="TOP" height="18"></td>
    <td WIDTH="104" height="18">
      <p align="right">76,972&nbsp;&nbsp;&nbsp;&nbsp;</td>
  </tr>
</font>
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="5"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="29" VALIGN="TOP" height="5"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="5" align="right"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="30" VALIGN="TOP" height="5"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="5"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">
<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="384" VALIGN="TOP" height="33"><font FACE="Arial" SIZE="2">Fidelity Growth and Income Fund,
      226,533 and<br>
      &nbsp; 221,226 units, respectively</font></td>
    <td WIDTH="29" VALIGN="TOP" height="33"></td>
    <td WIDTH="104" height="33" align="right">
    <br>
    6,866<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
</font>
    </td>
    <td WIDTH="30" VALIGN="TOP" height="33"></td>
    <td WIDTH="104" height="33">
      <p align="right"><br>
      8,269&nbsp;&nbsp;&nbsp;&nbsp;</td>
  </tr>
</font>
</font>
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="10"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="29" VALIGN="TOP" height="10"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="10" align="right"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="30" VALIGN="TOP" height="10"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="10"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">
<font FACE="Arial" SIZE="2">

  <tr>
    <td WIDTH="384" VALIGN="TOP" height="16">UTC Common Stock Fund, 388,626 and<br>
      &nbsp; 363,711<font FACE="Arial" SIZE="2"> units, respectively</font></td>
    <td WIDTH="29" VALIGN="TOP" height="16"></td>
    <td WIDTH="104" height="16" align="right">
    <font FACE="Arial" SIZE="2"><br>
    8,262&nbsp;&nbsp;&nbsp;&nbsp;
</font>
    </td>
    <td WIDTH="30" VALIGN="TOP" height="16"></td>
    <td WIDTH="104" height="16">
      <p align="right">
      <br>
      8,103&nbsp;&nbsp;&nbsp;&nbsp;</td>
  </tr>
</font>
</font>
  <tr>
    <td WIDTH="384" VALIGN="TOP" height="9"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="29" VALIGN="TOP" height="9"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="9" align="right"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="30" VALIGN="TOP" height="9"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td WIDTH="104" height="9"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

  <font FACE="Arial" SIZE="2">
  <tr>
    <td WIDTH="384" VALIGN="middle" height="16">UTC ESOP Fund, 81,252 and <font FACE="Arial" SIZE="2">48,557
      units, respectively</font></td>
    <td WIDTH="29" VALIGN="middle" height="16"></td>
    <td WIDTH="104" height="16" align="right" valign="middle">
    20,131*<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;
</font>
    </td>
    <td WIDTH="30" VALIGN="middle" height="16"></td>
    <td WIDTH="104" height="16" valign="middle">
      <p align="right">
      12,553*&nbsp;&nbsp;&nbsp;</td>
  </tr>
</table>
</font>
<font FACE="Arial" SIZE="2">

<p>* Non-participant directed</p>

<p>During 2002, the Plan&#146;s investments (including gains and losses on investments
bought and sold, as well as held during the year) depreciated in value by $18,909 as
follows:</p>

<div align="center">
  <center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="70%" style="font-family: Arial; font-size: 10pt">
  <tr>
    <td WIDTH="53%" VALIGN="TOP">(Thousands of Dollars)</td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Mutual Funds</font></td>
    <td WIDTH="6%" VALIGN="TOP"><p align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right">(17,591)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      ESOP Fund</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right">&nbsp;&nbsp;(976<font FACE="Arial" SIZE="2">)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font>

    </td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font>UTC Common Stock Fund</td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: thin">&nbsp;&nbsp;(<font FACE="Arial" SIZE="2">342)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font>

    </td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"><p align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right" style="border-bottom-style: double; border-bottom-width: thick">&nbsp;&nbsp;(18,909<font FACE="Arial" SIZE="2">)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font>

    </td>
  </tr>
</TABLE>
  </center>
</div>
</font>

<p align="center">6</p>

<u>

<hr>
</u>
<font FACE="Arial" SIZE="2">

<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>
</b></font>

<p align="center">&nbsp;</p>

<u>

<p><font FACE="Arial" SIZE="2"><b><a name="NOTE 4 - NONPARTICIPANT-DIRECTED INVESTMENTS">NOTE 4 - NONPARTICIPANT-DIRECTED INVESTMENTS</a></b></font></u></p>

<p><font face="Arial" size="2">The following is a summary of the
financial information attributable to the Plan for the UTC ESOP fund which is for the nonparticipant-directed investments
(<a href="#NOTE 7 - EMPLOYEE STOCK OWNERSHIP PLAN">Note 7</a>):</font></p>

<table cellspacing="1">

  </font>
<tr>
    <td height="21" class="xl24" width="714" colspan="13"><font face="Arial" size="1">(Thousands
      of Dollars)&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
<font FACE="Arial" SIZE="2">

  <tr height="21" style="mso-outline-parent:collapsed;height:15.75pt">
    <td height="21" class="xl24" width="185"></td>
    <td class="xl25" width="17" align="right" height="21"></td>
  </font>
    <td class="xl25" align="center" height="21" width="656" colspan="11" style="border-bottom-style: solid; border-bottom-width: thin"><b><font face="Arial" size="2">December
      31,</font></b></td>
  </tr>
<font FACE="Arial" SIZE="2">

  <tr height="21" style="mso-outline-parent:collapsed;height:15.75pt">
    <td height="21" class="xl24" width="185"></td>
    <td class="xl25" width="17" align="right" height="21"></td>
  </font>
    <td class="xl25" align="center" height="21" width="332" colspan="5" style="border-bottom-style: solid; border-bottom-width: thin"><b><font face="Arial" size="2">2002</font></b></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" width="22" align="center" height="21"></td>
  </font>
    <td class="xl24" align="center" height="21" width="302" colspan="5" style="border-bottom-style: solid; border-bottom-width: thin"><b><font face="Arial" size="2">2001</font></b></td>
<font FACE="Arial" SIZE="2">

  </tr>
  <tr height="21" style="mso-outline-parent:collapsed;height:15.75pt">
    <td height="21" class="xl24" width="185"></td>
    <td class="xl25" width="17" align="right" height="21"></td>
  </font>
    <td class="xl25" align="center" height="21" width="99" style="border-bottom-style: solid; border-bottom-width: thin">
      <p align="center"><b><font size="2" face="Arial">Allocated</font></b></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" width="17" align="center" height="21"></td>
  </font>
    <td class="xl25" width="99" align="center" height="21" style="border-bottom-style: solid; border-bottom-width: thin">
      <p align="center"><b><font size="2" face="Arial">Unallocated</font></b></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" width="16" align="center" height="21"></td>
  </font>
    <td class="xl25" align="center" height="21" width="101" style="border-bottom-style: solid; border-bottom-width: thin">
      <p align="center"><b><font size="2" face="Arial">Total</font></b></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" width="22" align="center" height="21"></td>
  </font>
    <td class="xl25" align="center" height="21" width="99" style="border-bottom-style: solid; border-bottom-width: thin">
      <p align="center"><b><font size="2" face="Arial">Allocated</font></b></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" width="17" align="center" height="21"></td>
  </font>
    <td class="xl25" width="99" align="center" height="21" style="border-bottom-style: solid; border-bottom-width: thin">
      <p align="center"><b><font size="2" face="Arial">Unallocated</font></b></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" width="16" align="center" height="21"></td>
  </font>
    <td class="xl25" align="right" height="21" width="101" style="border-bottom-style: solid; border-bottom-width: thin">
      <p align="center"><b><font face="Arial" size="2">Total</font></b></td>
  </tr>
  <tr height="21" style="mso-outline-parent:collapsed;height:15.75pt">
    <td height="21" class="xl24" width="185"><font face="Arial" size="2">Assets:</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" width="17" align="right" height="21"></td>
    <td class="xl25" align="right" height="21" width="99"></td>
    <td class="xl25" width="17" align="right" height="21"></td>
    <td class="xl25" width="99" align="right" height="21"></td>
    <td class="xl25" width="16" align="right" height="21"></td>
    <td class="xl25" align="right" height="21" width="101"></td>
    <td class="xl25" width="22" align="right" height="21"></td>
    <td class="xl24" align="right" height="21" width="86"></td>
    <td class="xl24" width="32" align="right" height="21"></td>
    <td class="xl24" align="right" height="21"></td>
    <td class="xl24" width="40" align="right" height="21"></td>
    <td class="xl24" width="59" align="right" height="21"></td>
  </tr>
  </font>
  <tr height="21" style="height:15.75pt">
    <td height="18" class="xl24" width="185"><font face="Arial" size="2">Short-term
      Investments</font></td>
    <td class="xl25" x:str="$" align="right" height="18" width="17"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl25" x:num="2735" align="right" height="18" width="99">
<font face="Arial" size="2">

  18&nbsp;&nbsp;</font></td>
    <td class="xl25" x:str="$" align="right" height="18" width="17"><font size="2" face="Arial">&nbsp;$</font></td>
    <td class="xl25" x:num="0" align="right" height="18" width="99"><font face="Arial" size="2">-</font></td>
    <td class="xl25" x:str="$" align="right" height="18" width="16"><font size="2" face="Arial">&nbsp;$</font></td>
    <td class="xl25" x:num="2735" x:fmla="=C2+E2" align="right" height="18" width="101"><font face="Arial" size="2">18</font></td>
    <td class="xl25" x:str="$" align="right" height="18" width="22"><font size="2" face="Arial">&nbsp;$</font></td>
    <td class="xl25" x:num="8656" align="right" height="18" width="86"><font face="Arial" size="2">24</font></td>

    <td class="xl25" x:str="$" align="right" height="18" width="32"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl25" x:num="0" align="right" height="18"><font face="Arial" size="2">-</font></td>
    <td class="xl25" x:str="$" align="right" height="18" width="40"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl25" x:num="8656" x:fmla="=I2+K2" align="right" height="18">
<font face="Arial" size="2">

    24
  </font>
    </td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="21" class="xl24" width="185"><font face="Arial" size="2">Common
      Stock</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="17"></td>
  </font>
    <td class="xl25" x:num="0" align="right" height="21" width="99"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="17"></td>
  </font>
    <td class="xl25" x:num="308" align="right" height="21" width="99">
<font face="Arial" size="2">

  2</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="16"></td>
  </font>
    <td class="xl25" x:num="308" x:fmla="=C3+E3" align="right" height="21" width="101"><font size="2" face="Arial">&nbsp;2</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="22"></td>
  </font>
    <td class="xl25" x:num="0" align="right" height="21" width="86"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="32"></td>
  </font>
    <td class="xl25" x:num="282" align="right" height="21">
<font face="Arial" size="2">

    1
  </font>
    </td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="40"></td>
  </font>
    <td class="xl25" x:num="282" x:fmla="=I3+K3" align="right" height="21">
<font face="Arial" size="2">

    1
  </font>
    </td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="21" class="xl24" width="185"><font face="Arial" size="2">ESOP
      Stock Fund</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="17"></td>
  </font>
    <td class="xl25" x:num="1611723" align="right" height="21" width="99">
<font face="Arial" size="2">

  12,917</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="17"></td>
  </font>
    <td class="xl25" x:num="1074825" align="right" height="21" width="99">
<font face="Arial" size="2">

  7,214</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="16"></td>
  </font>
    <td class="xl25" x:num="2686548" x:fmla="=C4+E4" align="right" height="21" width="101"><font size="2" face="Arial">&nbsp;20,131</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="22"></td>
  </font>
    <td class="xl25" x:num="1684068" align="right" height="21" width="86"><font size="2" face="Arial">&nbsp;9,239</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="32"></td>
  </font>
    <td class="xl25" x:num="1216096" align="right" height="21">
<font face="Arial" size="2">

    3,314
  </font>
    </td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="40"></td>
  </font>
    <td class="xl25" x:num="2900164" x:fmla="=I4+K4" align="right" height="21">
<font face="Arial" size="2">

    12,553
  </font>
    </td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="21" class="xl24" width="185"><font face="Arial" size="2">ESOP
      Receivables</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="17"></td>
  </font>
    <td class="xl26" x:num="0" align="right" height="21" width="99" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">-&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="17"></td>
  </font>
    <td class="xl26" x:num="149282" align="right" height="21" width="99" style="border-bottom-style: solid; border-bottom-width: thin">
<font face="Arial" size="2">

  1,002</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="16"></td>
  </font>
    <td class="xl26" x:num="149282" x:fmla="=C5+E5" align="right" height="21" width="101" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">1,002</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="22"></td>
  </font>
    <td class="xl26" x:num="0" align="right" height="21" width="86" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="32"></td>
  </font>
    <td class="xl26" x:num="140443" align="right" height="21" style="border-bottom-style: solid; border-bottom-width: thin">
<font face="Arial" size="2">

    382
  </font>
    </td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="40"></td>
  </font>
    <td class="xl26" x:num="140443" x:fmla="=I5+K5" align="right" height="21" style="border-bottom-style: solid; border-bottom-width: thin">
<font face="Arial" size="2">

    382
  </font>
    </td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="30" class="xl24" width="185"><font face="Arial"><font size="2">&nbsp;
      </font><font size="2">Total
      Assets</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="30" width="17"></td>
  </font>
    <td class="xl25" x:num="1614458" x:fmla="=SUM(C2:C5)" align="right" height="30" width="99"><font size="2" face="Arial">&nbsp;12,935</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="30" width="17"></td>
  </font>
    <td class="xl25" x:num="1224415" x:fmla="=SUM(E2:E5)" align="right" height="30" width="99">
<font face="Arial" size="2">

  8,218</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="30" width="16"></td>
  </font>
    <td class="xl25" x:num="2838873" x:fmla="=SUM(G2:G5)" align="right" height="30" width="101"><font size="2" face="Arial">21,153</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="30" width="22"></td>
  </font>
    <td class="xl25" x:num="1692724" x:fmla="=SUM(I2:I5)" align="right" height="30" width="86"><font size="2" face="Arial">&nbsp;9,263</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="30" width="32"></td>
  </font>
    <td class="xl25" x:num="1356821" x:fmla="=SUM(K2:K5)" align="right" height="30">
<font face="Arial" size="2">

    3,697
  </font>
    </td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="30" width="40"></td>
  </font>
    <td class="xl25" x:num="3049545" x:fmla="=SUM(M2:M5)" align="right" height="30">
<font face="Arial" size="2">

    12,960
  </font>
    </td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="21" class="xl24" width="185"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="17"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="99"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="17"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="99"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="16"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="101"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="22"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="86"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>

    <td class="xl25" align="left" height="21" width="32"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="40"><font face="Arial" size="2">&nbsp;</font></td>
    <td class="xl25" align="left" height="21"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="21" class="xl24" width="185"><font face="Arial" size="2">Liabilities:</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="21" width="17"></td>
    <td class="xl25" align="right" height="21" width="99"></td>
    <td class="xl25" align="right" height="21" width="17"></td>
    <td class="xl25" align="right" height="21" width="99"></td>
    <td class="xl25" align="right" height="21" width="16"></td>
    <td class="xl25" align="right" height="21" width="101"></td>
    <td class="xl25" align="right" height="21" width="22"></td>
    <td class="xl25" align="right" height="21" width="86"></td>
    <td class="xl25" align="right" height="21" width="32"></td>
    <td class="xl25" align="right" height="21"></td>
    <td class="xl25" align="right" height="21" width="40"></td>
    <td class="xl25" align="right" height="21"></td>
  </tr>
  </font>
  <tr height="21" style="height:15.75pt">
    <td height="17" class="xl24" width="185"><font face="Arial" size="2">Accrued
      ESOP Interest</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="17"></td>
  </font>
    <td class="xl25" x:num="0" align="right" height="17" width="99"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="17"></td>
  </font>
    <td class="xl25" x:num="-1853" align="right" height="17" width="99"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(12)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="16"></td>
  </font>
    <td class="xl25" x:num="-1853" x:fmla="=C9+E9" align="right" height="17" width="101"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(12)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="22"></td>
  </font>
    <td class="xl25" x:num="0" align="right" height="17" width="86"><font face="Arial"><font size="2">&nbsp;</font><font size="2">-</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="32"></td>
  </font>
    <td class="xl25" x:num="-1971" align="right" height="17"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(5)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="40"></td>
  </font>
    <td class="xl25" x:num="-1971" x:fmla="=I9+K9" align="right" height="17"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(5)</font></font></td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="17" class="xl24" width="185"><font face="Arial" size="2">ESOP
      Debt</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="17"></td>
  </font>
    <td class="xl25" x:num="0" align="right" height="17" width="99"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="17"></td>
  </font>
    <td class="xl25" x:num="-230056" align="right" height="17" width="99"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(1,544)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="16"></td>
  </font>
    <td class="xl25" x:num="-230056" x:fmla="=C10+E10" align="right" height="17" width="101"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(1,544)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="22"></td>
  </font>
    <td class="xl25" x:num="0" align="right" height="17" width="86"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="32"></td>
  </font>
    <td class="xl25" x:num="-265377" align="right" height="17"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(723)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="17" width="40"></td>
  </font>
    <td class="xl25" x:num="-265377" x:fmla="=I10+K10" align="right" height="17"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(723)</font></font></td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="26" class="xl24" width="185"><font face="Arial" size="2">Notes
      Payable to UTC</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="26" width="17"></td>
  </font>
    <td class="xl26" x:num="0" align="right" height="26" width="99" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="26" width="17"></td>
  </font>
    <td class="xl26" x:num="-191845" align="right" height="26" width="99" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">(1,288)</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="26" width="16"></td>
  </font>
    <td class="xl26" x:num="-191845" x:fmla="=C11+E11" align="right" height="26" width="101" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">(1,288)</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="26" width="22"></td>
  </font>
    <td class="xl26" x:num="0" align="right" height="26" width="86" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="26" width="32"></td>
  </font>
    <td class="xl26" x:num="-174857" align="right" height="26" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(477)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="26" width="40"></td>
  </font>
    <td class="xl26" x:num="-174857" x:fmla="=I11+K11" align="right" height="26" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(477)</font></font></td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="13" class="xl24" width="185"><font face="Arial"><font size="2">&nbsp;
      </font><font size="2">Total
      Liabilities</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="13" width="17"></td>
  </font>
    <td class="xl25" x:num="0" x:fmla="=SUM(C9:C11)" align="right" height="13" width="99"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="13" width="17"></td>
  </font>
    <td class="xl25" x:num="-423754" x:fmla="=SUM(E9:E11)" align="right" height="13" width="99"><font face="Arial" size="2">(2,844)</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="13" width="16"></td>
  </font>
    <td class="xl25" x:num="-423754" x:fmla="=C12+E12" align="right" height="13" width="101"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(2,844)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="13" width="22"></td>
  </font>
    <td class="xl25" x:num="0" x:fmla="=SUM(I9:I11)" align="right" height="13" width="86"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="13" width="32"></td>
  </font>
    <td class="xl25" x:num="-442205" x:fmla="=SUM(K9:K11)" align="right" height="13"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(1,205)</font></font></td>
<font FACE="Arial" SIZE="2">

    <td class="xl25" align="right" height="13" width="40"></td>
  </font>
    <td class="xl25" x:num="-442205" x:fmla="=I12+K12" align="right" height="13"><font face="Arial"><font size="2">&nbsp;</font><font size="2">(1,205)</font></font></td>
  </tr>
  <tr>
    <td height="21" class="xl24" width="185"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="17"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="99"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="17"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="99"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="16"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="101"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="22"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="86"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="32"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
    <td class="xl25" align="left" height="21" width="40"><font face="Arial" size="2">&nbsp;</font></td>
    <td class="xl25" align="left" height="21"><font face="Arial" size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr height="21" style="height:15.75pt">
    <td height="26" class="xl24" width="185"><font face="Arial" size="2">Net
      Assets</font></td>
    <td class="xl25" x:str="$" align="right" height="26" width="17"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl25" x:num="1614458" x:fmla="=C6-C12" align="right" height="26" width="99" style="border-bottom-style: double; border-bottom-width: thick"><font face="Arial"><font size="2">&nbsp;</font><font size="2">12,935</font></font></td>
    <td class="xl25" x:str="$" align="right" height="26" width="17"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl27" x:num="800661" x:fmla="=E6+E12" align="right" height="26" width="99" style="border-bottom-style: double; border-bottom-width: thick"><font face="Arial"><font size="2">&nbsp;</font><font size="2">5,374</font></font></td>
    <td class="xl25" x:str="$" align="right" height="26" width="16"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl25" x:num="2415119" x:fmla="=G6+G12" align="right" height="26" width="101" style="border-bottom-style: double; border-bottom-width: thick"><font face="Arial"><font size="2">&nbsp;</font><font size="2">18,309</font></font></td>
    <td class="xl25" x:str="$" align="right" height="26" width="22"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl25" x:num="1692724" x:fmla="=I6-I12" align="right" height="26" width="86" style="border-bottom-style: double; border-bottom-width: thick"><font face="Arial"><font size="2">&nbsp;</font><font size="2">9,263</font></font></td>
    <td class="xl25" x:str="$" align="right" height="26" width="32"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl27" x:num="914616" x:fmla="=K6+K12" align="right" height="26" style="border-bottom-style: double; border-bottom-width: thick"><font face="Arial"><font size="2">&nbsp;</font><font size="2">2,492</font></font></td>
    <td class="xl25" x:str="$" align="right" height="26" width="40"><font face="Arial"><font size="2">&nbsp;</font><font size="2">$</font></font></td>
    <td class="xl25" x:num="2607340" x:fmla="=M6+M12" align="right" height="26" style="border-bottom-style: double; border-bottom-width: thick">
<font face="Arial" size="2">

    11,755
  </font>
    </td>
  </tr>
</table>

<font FACE="Arial" SIZE="2">

<p align="center">&nbsp;</p>

    <div align="center">
      <center>
  <table height="458">
    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl25" width="330" style="width: 248pt"></td>
      <td class="xl29" width="23" style="width: 17pt" align="right" height="21"></td>
      <td class="xl24" width="316" colspan="5" height="21">
        <p align="center"><font face="Arial" size="2"><b>Year Ended December 31,
        2002</b></font></td>
    </tr>
    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl25" width="330" style="width: 248pt"></td>
      <td class="xl29" width="23" style="width: 17pt" align="right" height="21"></td>
      <td class="xl24" width="88" style="border-bottom-style: solid; border-bottom-width: thin" align="center" height="21"><font size="2" face="Arial"><b>Allocated</b></font></td>
      <td class="xl24" width="24" align="center" height="21"></td>
      <td class="xl24" width="104" style="border-bottom-style: solid; border-bottom-width: thin" align="center" height="21"><font size="2" face="Arial"><b>Unallocated</b></font></td>
      <td class="xl24" width="23" align="center" height="21"></td>
      <td class="xl24" width="77" style="border-bottom-style: solid; border-bottom-width: thin" align="center" height="21"><font face="Arial" size="2"><b>Total</b></font></td>
    </tr>
    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26">
        <p align="center"></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl27" height="21"></td>
      <td class="xl31" align="right" height="21"></td>
      <td class="xl27" height="21"></td>
      <td class="xl31" align="right" height="21"></td>
      <td class="xl27" height="21"></td>
    </tr>
    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"><font face="Arial" size="2"><b>Additions:</b></font></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl27" x:num="67583" height="21"></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl27" x:num="51248" height="21"></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl27" x:num="118831" x:fmla="=C4+E4" height="21"></td>
    </tr>
    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Interest
        and Dividend Income</font></td>
  </font>
      <td class="xl30" align="right" height="21">
<font FACE="Arial" size="2">

    $
  </font>
    </td>
      <td class="xl27" x:num="-30619" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font>
<font FACE="Arial" size="2">

    208</font>
    </td>
      <td class="xl31" align="right" height="21">
<font FACE="Arial" size="2">

    $
  </font>
    </td>
      <td class="xl27" x:num="-21077" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font>
<font FACE="Arial" size="2">

    148</font>
    </td>
      <td class="xl31" align="right" height="21">
<font FACE="Arial" size="2">

    $
  </font>
    </td>
      <td class="xl27" x:num="-51696" x:fmla="=C5+E5" align="right" height="21">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; </font><font FACE="Arial" size="2">356
  </font>
    </td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Contributions</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="0" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="-23020" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

<font FACE="Arial" size="2">

    1,791
  </font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="-23020" x:fmla="=C6+E6" align="right" height="21">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,791 </font></td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Allocation
        of ESOP shares, at market</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="-66655" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font>
<font FACE="Arial" size="2">

    4,898
  </font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="66655" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font>
<font FACE="Arial" size="2">

    -
  </font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="0" x:fmla="=C7+E7" align="right" height="21">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </font><font FACE="Arial" size="2">4,898&nbsp;
  </font>
    </td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Apportionment
        of Unallocated ESOP shares</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl28" x:num="0" align="right" height="21" style="border-bottom-style: solid; border-bottom-width: thin">
<font FACE="Arial" size="2">

    -
  </font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl28" x:num="6411" align="right" height="21" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font>
        <font face="Arial" size="2">6,411</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl28" x:num="6411" x:fmla="=C11+E11" align="right" height="21" style="border-bottom-style: solid; border-bottom-width: thin">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">6,411</font></td>
      </tr>
<font FACE="Arial" SIZE="2">

    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
        Total Additions</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="67583" align="right" height="21"><font face="Arial" size="2">5,106</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="51248" align="right" height="21"><font face="Arial" size="2">8,350</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="118831" x:fmla="=C4+E4" align="right" height="21"><font face="Arial" size="2">13,456</font></td>
    </tr>
    <tr height="17" style="height:12.75pt">
      <td height="6" class="xl26">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <td class="xl30" align="left" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <td class="xl27" x:num="67583" align="left" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <td class="xl30" align="left" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <td class="xl27" x:num="51248" align="left" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <td class="xl30" align="left" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <td class="xl27" x:num="118831" x:fmla="=C4+E4" align="left" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"><font face="Arial" size="2"><b>Deductions:</b></font></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl27" x:num="67583" align="right" height="21"></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl27" x:num="51248" align="right" height="21"></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl27" x:num="118831" x:fmla="=C4+E4" align="right" height="21"></td>
    </tr>
    <tr>
      <td height="18" class="xl26"><font face="Arial" size="2">&nbsp; Net
        depreciation of ESOP shares</font></td>
  </font>
      <td class="xl30" align="right" height="18"><font face="Arial" size="2">$</font></td>
      <td class="xl27" x:num="67583" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;632</font></td>
      <td class="xl30" align="right" height="18"><font face="Arial" size="2">$</font></td>
      <td class="xl27" x:num="51248" align="right" height="18"><font face="Arial" size="2">344</font></td>
      <td class="xl30" align="right" height="18"><font face="Arial" size="2">$</font></td>
      <td class="xl27" x:num="118831" x:fmla="=C4+E4" align="right" height="18"><font face="Arial" size="2">976</font></td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Distributions
        to participants</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="58165" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;735</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="0" align="right" height="21"><font face="Arial" size="2">-</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="58165" x:fmla="=C8+E8" align="right" height="21"><font face="Arial" size="2">735</font></td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Interest
        Expense</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="0" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        -</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="33738" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        226</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="33738" x:fmla="=C9+E9" align="right" height="21"><font face="Arial" size="2">226</font></td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Transfers
        to participant-directed investments</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="49792" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        67</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="0" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        -&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="49792" x:fmla="=C10+E10" align="right" height="21"><font face="Arial" size="2">67</font></td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Allocation
        of ESOP shares, at market</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl28" x:num="0" style="border-bottom-style: solid; border-bottom-width: thin" align="right" height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        -</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl28" x:num="6411" style="border-bottom-style: solid; border-bottom-width: thin" align="right" height="21"><font face="Arial" size="2">4,898</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl31" align="right" height="21"></td>
  </font>
      <td class="xl28" x:num="6411" x:fmla="=C11+E11" style="border-bottom-style: solid; border-bottom-width: thin" align="right" height="21"><font face="Arial" size="2">4,898</font></td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
        Total Deductions</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="67583" align="right" height="21"><font face="Arial" size="2">1,434</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="51248" align="right" height="21"><font face="Arial" size="2">5,468</font></td>
<font FACE="Arial" SIZE="2">

      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl27" x:num="118831" x:fmla="=C4+E4" align="right" height="21"><font face="Arial" size="2">6,902</font></td>
    </tr>
    <tr height="17" style="height:12.75pt">
      <td height="8" class="xl26"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
      <td class="xl30" align="left" height="8"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
      <td class="xl27" x:num="67583" height="8"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
      <td class="xl30" align="left" height="8"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
      <td class="xl27" x:num="51248" height="8"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
      <td class="xl30" align="left" height="8"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
      <td class="xl27" x:num="118831" x:fmla="=C4+E4" height="8"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr height="17" style="height:12.75pt">
      <td height="25" class="xl26"><font face="Arial" size="2">Net increase</font></td>
  </font>
      <td class="xl30" align="right" height="25"><font face="Arial" size="2">$</font></td>
      </center>
      <td class="xl27" x:num="78266" x:fmla="=SUM(C4:C11)" height="25">
        <p align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font FACE="Arial" size="2">3,672</font>
        </p>
      </td>
      <center>
      <td class="xl30" align="right" height="25"><font face="Arial" size="2">$</font></td>
      </center>
      <td class="xl27" x:num="113955" x:fmla="=SUM(E4:E11)" height="25">
        <p align="right">
<font FACE="Arial" size="2">

    2,882</font>
      </td>
      <center>
      <td class="xl30" align="right" height="25"><font face="Arial" size="2">$</font></td>
      </center>
      <td class="xl27" x:num="192221" x:fmla="=C12+E12" height="25">
        <p align="right">
<font FACE="Arial" size="2">

    6,554
  </font>
      </td>
    </tr>
      <center>
    <tr height="17" style="height:12.75pt">
      <td height="6" class="xl26"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
      </center>
      <td class="xl30" align="right" height="6">
        <p align="left">
<font FACE="Arial" size="1">

    &nbsp;
  </font>
      </td>
      <center>
      <td class="xl27" x:num="78266" x:fmla="=SUM(C4:C11)" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      </center>
      <td class="xl30" align="right" height="6">
        <p align="left">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <center>
      <td class="xl27" x:num="113955" x:fmla="=SUM(E4:E11)" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      </center>
      <td class="xl30" align="right" height="6">
        <p align="left">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
      <center>
      <td class="xl27" x:num="192221" x:fmla="=C12+E12" height="6">
<font FACE="Arial" size="1">

    &nbsp;&nbsp;
  </font>
      </td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"><font face="Arial" size="2">Net assets:</font></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl24" height="21"></td>
      <td class="xl32" align="right" height="21"></td>
      <td class="xl24" height="21"></td>
      <td class="xl32" align="right" height="21"></td>
      <td class="xl24" height="21"></td>
    </tr>
    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; Beginning
        of year</font></td>
      <td class="xl30" align="right" height="21"></td>
  </font>
      <td class="xl24" height="21" align="right" style="border-bottom-style: solid; border-bottom-width: thin">
<font FACE="Arial" size="2">

    9,263</font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl32" align="right" height="21"></td>
  </font>
      <td class="xl24" height="21" align="right" style="border-bottom-style: solid; border-bottom-width: thin">
<font FACE="Arial" size="2">

    2,492</font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl32" align="right" height="21"></td>
  </font>
      <td class="xl24" height="21" align="right" style="border-bottom-style: solid; border-bottom-width: thin">
<font FACE="Arial" size="2">

    11,755
  </font>
    </td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr>
      <td height="21" class="xl26"><font face="Arial" size="2">&nbsp; End of
        Year</font></td>
  </font>
      <td class="xl30" align="right" height="21"><font face="Arial" size="2">$</font></td>
      <td class="xl24" height="21" align="right" style="border-bottom-style: double; border-bottom-width: thick">
<font FACE="Arial" size="2">

    12,935
  </font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl32" align="right" height="21"></td>
  </font>
      <td class="xl24" height="21" align="right" style="border-bottom-style: double; border-bottom-width: thick">
<font FACE="Arial" size="2">

    5,374
  </font>
    </td>
<font FACE="Arial" SIZE="2">

      <td class="xl32" align="right" height="21"></td>
  </font>
      <td class="xl24" height="21" align="right" style="border-bottom-style: double; border-bottom-width: thick">
<font FACE="Arial" size="2">

    18,309
  </font>
    </td>
    </tr>
<font FACE="Arial" SIZE="2">

    <tr height="17" style="height:12.75pt">
      <td height="21" class="xl26"></td>
      <td class="xl30" align="right" height="21"></td>
      <td class="xl24" height="21" align="right"></td>
      <td class="xl32" align="right" height="21"></td>
      <td class="xl24" height="21" align="right"></td>
      <td class="xl32" align="right" height="21"></td>
      <td class="xl24" height="21" align="right"></td>
    </tr>
  </table>
      </center>
    </div>

<p align="left">&nbsp;</p>

    <b>
<u>

<p><font FACE="Arial" SIZE="2"><a name="NOTE 5 - INVESTMENT CONTRACTS WITH INSURANCE COMPANIES">NOTE 5 - INVESTMENT CONTRACTS WITH INSURANCE COMPANIES</a></font></u></b></p>

<p ALIGN="JUSTIFY"><font face="Arial" size="2">The Plan's Income Fund invests in insurance
contracts with insurance companies. Under these contracts, each insurance company
guarantees repayment in full of the principal amount plus interest credited at a fixed
rate for a specified period. Interest is credited to each contract based on an annual
interest rate set each year by the individual insurance companies. This rate, which
differs among contracts, takes into account any difference between prior year credited
interest and the actual amount of investment earnings allocable to the contract in
accordance with the established allocation procedures of the insurance company. The
weighted average interest rates credited to participant accounts for 2002 and 2001 were 6.78% and 8.31%, respectively.<font FACE="Arial" SIZE="1"><u><b></p>

<p><font FACE="Arial" SIZE="2"><a name="NOTE 6 - INVESTMENT IN MASTER TRUST">NOTE 6 - INVESTMENT IN MASTER TRUST</a></font></b></u></p>

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">UTC has entered into a Master Trust
agreement with </font>

</font>

Deutsche Bank Trust Company Americas<font FACE="Arial" SIZE="1"><font FACE="Arial" SIZE="2">. Under this agreement, certain savings plans of UTC and its
subsidiaries combine their trust fund investments in the Master Trust.</font></p>

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">Participating plans purchase units of
participation in the investment funds based on their contribution to such funds along with
income that the investment funds may earn, less distributions made to the </font>

</font>

P<font FACE="Arial" SIZE="1"><font FACE="Arial" SIZE="2">lans'
participants.</font></p>

</font>

<p ALIGN="center">7</p>

<font FACE="Arial" SIZE="1">

<hr>
<font FACE="Arial" SIZE="2">

<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>
</b>

<p ALIGN="JUSTIFY">The following is a summary of the financial information and data for
the Master Trust and the portion </font></font>attributable

<font FACE="Arial" SIZE="1">

<font FACE="Arial" SIZE="2">

to the Plan:</font><b><font SIZE="2"></p>

<p align="center"></font><font FACE="Arial" SIZE="2">United Technologies Corporation<br>
Master Trust Statement</font></font>s<font FACE="Arial" SIZE="2"> of Net Assets<br>
</font>

</b>

<font FACE="Arial" SIZE="1">

<font FACE="Arial" SIZE="2">(Thousands of Dollars)
</font>

</font>

</p>

<table height="824">
>
  <tr height="17" style="height:12.75pt">
    <td height="20" width="325" style="width: 244pt"></td>
    <td width="22" style="width: 17pt" align="right" height="20"></td>
    <td colspan="11" class="xl26" width="562" style="width: 423pt" x:str="'December 31" height="20">
      <p align="center"><font face="Arial" size="2"><b>December 31,</b></font></p>
    </td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="20"></td>
    <td align="right" height="20"></td>
    <td colspan="5" class="xl26" x:num align="center" height="20"><font face="Arial" size="2"><b>2002</b></font></td>
    <td class="xl26" align="center" height="20"></td>
    <td colspan="5" class="xl26" x:num align="center" height="20"><font face="Arial" size="2"><b>2001</b></font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="20"></td>
    <td align="right" height="20"></td>
    <td class="xl25" align="center" style="border-bottom-style: solid; border-bottom-width: thin" height="20"><font face="Arial" size="2"><b>Allocated</b></font></td>
    <td align="right" height="20"></td>
    <td class="xl25" align="center" style="border-bottom-style: solid; border-bottom-width: thin" height="20"><font face="Arial" size="2"><b>Unallocated</b></font></td>
    <td align="right" height="20"></td>
    <td class="xl25" align="center" style="border-bottom-style: solid; border-bottom-width: thin" height="20"><font face="Arial" size="2"><b>Total</b></font></td>
    <td align="right" height="20"></td>
    <td class="xl25" align="center" style="border-bottom-style: solid; border-bottom-width: thin" height="20"><font face="Arial" size="2"><b>Allocated</b></font></td>
    <td align="center" height="20"></td>
    <td class="xl25" align="center" style="border-bottom-style: solid; border-bottom-width: thin" height="20"><font face="Arial" size="2"><b>Unallocated</b></font></td>
    <td align="center" height="20"></td>
    <td class="xl25" align="center" style="border-bottom-style: solid; border-bottom-width: thin" height="20"><font face="Arial" size="2"><b>Total</b></font></td>
  </tr>
</font>

  </font>
  <tr height="17" style="height:12.75pt">
    <td height="20" colspan="13"><font face="Arial" size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
<font face="Arial" size="2">
<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="20"><font face="Arial" size="2">Assets:</font></td>
    <td align="right" height="20"></td>
    <td class="xl24" height="20"></td>
    <td align="right" height="20"></td>
    <td class="xl24" height="20"></td>
    <td align="right" height="20"></td>
    <td class="xl24" height="20"></td>
    <td align="right" height="20"></td>
    <td class="xl24" height="20"></td>
    <td height="20"></td>
    <td class="xl24" height="20"></td>
    <td height="20"></td>
    <td class="xl24" height="20"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Short-term investments</font></td>
    <td class="xl27" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="24137" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">24,137</font></td>
    <td class="xl27" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td class="xl27" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="24137" x:fmla="=C6+E6" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">24,137</font></td>
    <td class="xl27" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="34221" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">34,221</font></td>
    <td class="xl27" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td class="xl27" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="34221" x:fmla="=SUM(I6:K6)" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">34,221</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Investments:</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Equity:</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Mutual funds</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="549432" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">549,432</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">&nbsp;</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="549432" x:fmla="=C9+E9" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      549,432</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="658861" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">658,861</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="658861" x:fmla="=SUM(I9:K9)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;658,861</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Equity commingled index funds</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="924906" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">924,906</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="924906" x:fmla="=C10+E10" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      924,906</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="1203904" align="right" style="font-family: Arial; font-size: 10pt" height="34">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">1,203,904</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="1203904" x:fmla="=SUM(I10:K10)" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;
      1,203,904</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Common stock</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="674306" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">674,306</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="310" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">310</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="674616" x:fmla="=C11+E11" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">674,616</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="768320" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">768,320</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="283" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">283</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="768603" x:fmla="=SUM(I11:K11)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">768,603</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">ESOP stock fund</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="1624640" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">1,624,640</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="1082039" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">1,082,039</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="2706679" x:fmla="=C12+E12" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">2,706,679</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="1693307" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">1,693,307</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="1219410" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">1,219,410</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="2912717" x:fmla="=SUM(I12:K12)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;
      </font><font face="Arial" size="2">2,912,717</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Debt:</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Fixed income commingled index
      funds</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="17131" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">17,131</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="34"></td>
    <td class="xl24" x:num="17131" x:fmla="=C14+E14" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,131</font></td>
    <td align="right" height="34"></td>
    <td class="xl24" x:num="19422" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">19,422</font></td>
    <td align="right" height="34"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="19422" x:fmla="=SUM(I14:K14)" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      19,422</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Income Fund investment contracts</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="5285606" align="right" style="font-family: Arial; font-size: 10pt" height="34">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">5,285,606</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="34"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="34"></td>
    <td class="xl24" x:num="5285606" x:fmla="=C15+E15" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;5,285,606</font></td>
    <td align="right" height="34"></td>
    <td class="xl24" x:num="4775327" align="right" style="font-family: Arial; font-size: 10pt" height="34">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">4,775,327</font></td>
    <td align="right" height="34"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="34"></td>
    <td class="xl24" x:num="4775327" x:fmla="=SUM(I15:K15)" align="right" style="font-family: Arial; font-size: 10pt" height="34"><font face="Arial" size="2">&nbsp;&nbsp;
      4,775,327</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">Participant
      notes receivable</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="90787" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">90,787</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="90787" x:fmla="=C16+E16" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90,787</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="92055" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">92,055</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="92055" x:fmla="=SUM(I16:K16)" style="font-family: Arial; font-size: 10pt; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      92,055</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Subtotal</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="9190945" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,190,945</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1082349" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">1,082,349</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="10273294" x:fmla="=C17+E17" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">10,273,294</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="9245417" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,245,417</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1219693" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">1,219,693</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="10465110" x:fmla="=SUM(I17:K17)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">10,465,110</font></td>
  </tr>

  </font>
</font>

  <tr height="17" style="height:12.75pt">
    <td height="20" colspan="13"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font face="Arial" size="2">
<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">ESOP
      receivables</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="150284" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      150,284</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="150284" x:fmla="=C19+E19" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">150,284</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>

  </font>
</font>

    <td class="xl24" x:num="140824" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
</font>

      <font size="2">140,825
</font>

      </font></td>
<font face="Arial" size="2">
    <td align="right" height="18"></td>
</font>

    <td class="xl24" x:num="140824" x:fmla="=SUM(I19:K19)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font size="2">140,825</font></font></td>
  </tr>
<font face="Arial" size="2">
<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">Interest
      and dividend receivable</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="1674" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">1,674</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">&nbsp;</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1674" x:fmla="=C20+E20" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;1,674</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="2297" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">2,297</font></td>
    <td align="right" height="18"></td>

  </font>
</font>

    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font size="2">-&nbsp;&nbsp;</font></font></td>
<font face="Arial" size="2">
    <td align="right" height="18"></td>
</font>

    <td class="xl24" x:num="2297" x:fmla="=SUM(I20:K20)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial"><font size="2">&nbsp;</font><font size="2">2,297</font></font></td>
  </tr>
<font face="Arial" size="2">
<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Total assets</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="9192619" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,192,619</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1232633" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">1,232,633</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="10425252" x:fmla="=C21+E21" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">10,425,252</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="9247714" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,247,714</font></td>
    <td align="right" height="18"></td>

  </font>
</font>

    <td class="xl24" x:num="1360517" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial"><font size="2">&nbsp;
      </font><font size="2">1,360,518</font></font></td>
<font face="Arial" size="2">
    <td align="right" height="18"></td>
</font>

    <td class="xl24" x:num="10608231" x:fmla="=SUM(I21:K21)" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial"><font size="2">&nbsp;</font><font size="2">10,608,232</font></font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18" colspan="13"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font face="Arial" size="2">
<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">Liabilities:</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Accrued liabilities</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="39113" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">39,113</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="39113" x:fmla="=C24+E24" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;39,113</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="6499" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">6,499</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="6499" x:fmla="=SUM(I24:K24)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;6,499</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Accrued ESOP interest</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1865" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1,865</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1865" x:fmla="=C25+E25" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">1,865</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1976" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1,976</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="1976" x:fmla="=SUM(I25:K25)" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">1,976</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">ESOP debt</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="231600" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      231,600</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="231600" x:fmla="=C26+E26" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">231,600</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="266100" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      266,100</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="266100" x:fmla="=SUM(I26:K26)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">266,100</font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Notes payable to UTC</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="193133" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      193,133</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="193133" x:fmla="=C27+E27" align="right" style="font-family: Arial; font-size: 10pt" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">193,133</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="0" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="175333" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      175,33</font>4</td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="175333" x:fmla="=SUM(I27:K27)" align="right" style="font-family: Arial; font-size: 10pt" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">175,33</font>4</td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Total liabilities</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18"></td>
    <td class="xl24" x:num="39113" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">39,113</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="426598" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">426,598</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="465711" x:fmla="=C28+E28" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">465,711</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="6499" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">6,499</font></td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="443409" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">443,4</font>10</td>
    <td align="right" height="18"></td>
    <td class="xl24" x:num="449908" x:fmla="=SUM(I28:K28)" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: solid; border-bottom-width: thin" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">449,90</font>9</td>
  </tr>

  </font>
</font>

  <tr height="17" style="height:12.75pt">
    <td height="18" colspan="13"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

    <font face="Arial" size="2">
  <tr height="17" style="height:12.75pt">
    <td height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Net Assets</font></td>
    <td align="right" style="font-family: Arial; font-size: 10pt" height="18">
      <p align="right"><font face="Arial" size="2">$</font></p>
    </td>
    <td class="xl24" x:num="9153506" style="font-family: Arial; font-size: 10pt; border-bottom-style: double; border-bottom-width: thick" align="right" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,153,506</font></td>
    <td align="right" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="806035" style="font-family: Arial; font-size: 10pt; border-bottom-style: double; border-bottom-width: thick" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">806,035</font></td>
    <td align="right" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="9959541" x:fmla="=C30+E30" style="font-family: Arial; font-size: 10pt; border-bottom-style: double; border-bottom-width: thick" align="right" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,959,541</font></td>
    <td align="right" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="9241215" style="font-family: Arial; font-size: 10pt; border-bottom-style: double; border-bottom-width: thick" align="right" height="18">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,241,215</font></td>
    <td align="right" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="917108" style="font-family: Arial; font-size: 10pt; border-bottom-style: double; border-bottom-width: thick" align="right" height="18"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">917,108</font></td>
    <td align="right" height="18"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="10158323" x:fmla="=SUM(I30:K30)" style="font-family: Arial; font-size: 10pt; border-bottom-style: double; border-bottom-width: thick" align="right" height="18"><font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">10,158,323</font></td>
  </tr>
</font>

  </font>
  <tr height="17" style="height:12.75pt">
    <td height="18" colspan="13"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
<font face="Arial" size="2">
<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="34" x:str="Net assets of the Master Trust allocable to the Plan "><font face="Arial" size="2">Net
      assets of the Master<br>
      &nbsp; Trust attributable to the Plan</font></td>
    <td align="right" height="34" valign="bottom"><font face="Arial" size="2">$</font></td>

  </font>
</font>

    <td class="xl24" x:num="7836208" x:fmla="=G32-E32" style="border-bottom-style: double; border-bottom-width: thick" align="right" height="34" valign="bottom">
      <p align="right"><font face="Arial" size="2">202,363</font></p>
</td>
    <td align="right" height="34" valign="bottom"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="800661" style="border-bottom-style: double; border-bottom-width: thick" align="right" height="34" valign="bottom"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;5,374</font></td>
    <td align="right" height="34" valign="bottom"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="8636869" style="border-bottom-style: double; border-bottom-width: thick" align="right" height="34" valign="bottom"><font face="Arial" size="2">&nbsp;&nbsp;207,737</font></td>
    <td align="right" height="34" valign="bottom"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="7989065" x:fmla="=M32-K32" style="border-bottom-style: double; border-bottom-width: thick" align="right" height="34" valign="bottom"><font face="Arial" size="2">&nbsp;157,000</font></td>
    <td align="right" height="34" valign="bottom"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="914615" style="border-bottom-style: double; border-bottom-width: thick" align="right" height="34" valign="bottom"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;2,493</font></td>
    <td align="right" height="34" valign="bottom"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="8903680" style="border-bottom-style: double; border-bottom-width: thick" align="right" height="34" valign="bottom"><font face="Arial" size="2">&nbsp;&nbsp;
      159,493</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

  <font face="Arial" size="2">
  <tr height="17" style="height:12.75pt">
    <td height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="18"></td>
    <td align="right" height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
    <td height="18"></td>
    <td class="xl24" height="18"></td>
  </tr>
</table>

<p align="left">&nbsp;

</p>

</font>

<p align="center"><font face="Arial" size="2">8</font></p>

<hr>
<font FACE="Arial" SIZE="2">

<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>

<p align="center">United Technologies Corporation<br>
Master Trust Statement of Changes in Net Assets<br>
</b>(Thousands of Dollars)</p>

<p align="center">&nbsp;</p>

<div align="center">
  <center>
  <table height="799">
    <tr>
      <td height="21"></td>
      <td align="right" height="21"></td>
      <td colspan="5" align="center" height="21"><font face="Arial" size="2"><b>Year
        Ended December 31,
        2002</b></font></td>
    </tr>
  <tr height="17" style="height:12.75pt">
    <td height="21"></td>
    <td align="right" height="21"></td>
    <td class="xl25" style="border-bottom-style: solid; border-bottom-width: thin" align="center" height="21"><font face="Arial" size="2"><b>Allocated</b></font></td>
    <td align="right" height="21"></td>
    <td class="xl25" style="border-bottom-style: solid; border-bottom-width: thin" align="center" height="21"><font face="Arial" size="2"><b>Unallocated</b></font></td>
    <td align="center" height="21"></td>
    <td class="xl25" style="border-bottom-style: solid; border-bottom-width: thin" align="center" height="21"><font face="Arial" size="2"><b>Total</b></font></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">Additions:</font></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21"></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21"></td>
    <td height="21"></td>
    <td class="xl24" height="21"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="17"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Interest and dividend income</font></td>
    <td class="xl33" align="right" height="17"><font face="Arial" size="2">$</font></td>

</font>

  </font>
    <td class="xl24" x:num="384224" height="17" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">384,220&nbsp;&nbsp;</font></td>
    <td class="xl33" align="right" height="17"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="21221" height="17" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">21,225&nbsp;&nbsp;</font></td>
    <td class="xl33" align="right" height="17"><font face="Arial" size="2">$</font></td>
    <td class="xl24" x:num="405445" x:fmla="=SUM(C6:E6)" height="17" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">405,445&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Contributions from participating
      plans for purchase of units</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl24" x:num="303726" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font>
<font FACE="Arial" size="2">

<font face="Arial" size="2">30</font>2,384&nbsp;&nbsp;</font>

</td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="23469" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font>
<font FACE="Arial" size="2">

<font face="Arial" size="2">2</font>4,811&nbsp;&nbsp;</font>

</td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="327195" x:fmla="=SUM(C7:E7)" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">327,195&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Allocation of 269,000 ESOP
      shares, at market</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl26" x:num="71553" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">71,553&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
  </center>
    <td class="xl26" x:num="0" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right">
      <p align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-&nbsp;&nbsp;</font></p>
  </td>
  <center>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl26" x:num="71553" x:fmla="=SUM(C8:E8)" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">71,553&nbsp;&nbsp;</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">Total additions</font></td>
    <td align="right" height="21"></td>

</font>

  </font>

    <td class="xl24" x:num="759503" x:fmla="=SUM(C6:C8)" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp; </font><font FACE="Arial" size="2"><font face="Arial" size="2">75</font>8,157&nbsp;&nbsp;

</font>

</td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="44690" x:fmla="=SUM(E6:E7)" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font FACE="Arial" size="2"><font face="Arial" size="2">4</font>6,036&nbsp;&nbsp;

</font>

</td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl29" x:num="804193" x:fmla="=SUM(G6:G8)" height="21" align="right">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">804,193&nbsp;&nbsp;</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">Deductions:</font></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Net depreciation on fair value
      of investments</font></td>
    <td align="right" height="21"></td>

</font>

  </font>

    <td class="xl24" x:num="-466592" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;
      </font><font face="Arial" size="2">(466,592)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="-51592" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(51,592)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="-518184" x:fmla="=SUM(C13:E13)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(518,184)</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Benefit payments on behalf of
      participating plans</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl24" x:num="-430445" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;
      </font><font face="Arial" size="2">(430,445)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="0" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="-430445" x:fmla="=SUM(C14:E14)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font>
      <font face="Arial" size="2">(430,445)</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Allocation of 269,000 ESOP
      shares, at market</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl24" x:num="0" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="-71553" x:fmla="=-C8" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">(71,553)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="-71553" x:fmla="=SUM(C15:E15)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(71,553)</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Master trust expenses</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl26" x:num="-3079" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(3,079)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl26" x:num="-33964" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(33,964)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl26" x:num="-37043" x:fmla="=SUM(C16:E16)" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(37,043)</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

</font>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      Total deductions</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl27" style="border-bottom-style: solid; border-bottom-width: thin" x:num="-900116" x:fmla="=SUM(C13:C16)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;
      </font><font face="Arial" size="2">(900,116)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl27" style="border-bottom-style: solid; border-bottom-width: thin" x:num="-157109" x:fmla="=SUM(E13:E16)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(157,109)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl27" style="border-bottom-style: solid; border-bottom-width: thin" x:num="-1057225" x:fmla="=SUM(G13:G16)" height="21" align="right"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">(1,057,225)</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">Net
      decrease prior to transfers</font></td>
    <td align="right" height="21"></td>

</font>

  </font>

    <td class="xl24" x:num="-140613" x:fmla="=C10+C18" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp; </font><font face="Arial" size="2">(141,959)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="-112419" x:fmla="=E10+E18" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">(111,073)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl29" x:num="-253032" x:fmla="=G10+G18" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">(253,032)</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">Plan
      transfers:</font></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Assets transferred in</font></td>
    <td align="right" height="21"></td>

</font>

  </font>

    <td class="xl24" x:num="70167" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">70,167</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="0" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="70167" x:fmla="=SUM(C23:E23)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font>
      <font face="Arial" size="2">70,167&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Assets transferred out</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl26" x:num="-15917" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">(15,917)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl26" x:num="0" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl26" x:num="-15917" x:fmla="=SUM(C24:E24)" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font>
      <font face="Arial" size="2">(15,917)</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

</font>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;
      Net Plan transfers</font></td>
    <td align="right" height="21"></td>
  </font>

</font>

    <td class="xl27" style="border-bottom-style: solid; border-bottom-width: thin" x:num="54250" x:fmla="=SUM(C23:C24)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">54,250</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl27" style="border-bottom-style: solid; border-bottom-width: thin" x:num="0" x:fmla="=SUM(E23:E24)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font><font face="Arial" size="2">-&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl27" style="border-bottom-style: solid; border-bottom-width: thin" x:num="54250" x:fmla="=SUM(G23:G24)" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font>
      <font face="Arial" size="2">54,250&nbsp;&nbsp;</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">Decrease
      in net assets</font></td>
    <td align="right" height="21"></td>

</font>

  </font>

    <td class="xl24" x:num="-86363" x:fmla="=C20+C26" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">(87,709)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="-112419" x:fmla="=E20+E26" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">(111,073)</font></td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl29" x:num="-198782" x:fmla="=G20+G26" height="21" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">(198,782)</font></td>
  </tr>

  <tr height="17" style="height:12.75pt">
    <td height="21" colspan="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">Net
      Assets:</font></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
    <td align="right" height="21"></td>
    <td class="xl24" height="21" align="right"></td>
  </tr>
  <tr height="17" style="height:12.75pt">
    <td height="21"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">Beginning of year</font></td>
    <td align="right" height="21"></td>

</font>

  </font>

  </center>

    <td class="xl24" x:num="9239869" x:fmla="=G31-E31" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right">
      <p align="right">
  <font face="Arial" size="2">&nbsp;</font><font FACE="Arial" size="2"><font face="Arial" size="2">9,2</font>41,215&nbsp;&nbsp;</font></p>
  </td>
  <center>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="918454" x:fmla="=915958+2496" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;
      </font>
<font FACE="Arial" size="2">

<font face="Arial" size="2">91</font>7,108&nbsp;&nbsp;&nbsp;

</font>

</td>
<font FACE="Arial" SIZE="2">

    <td align="right" height="21"></td>
</font>
    <td class="xl24" x:num="10158323" style="border-bottom-style: solid; border-bottom-width: thin" height="21" align="right">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">10,158,323&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="24"><font face="Arial" size="2">&nbsp;
      </font><font face="Arial" size="2">End of Year</font></td>
    <td class="xl33" align="right" height="24"><font face="Arial" size="2">$</font></td>
  </font>

</font>

  </center>

    <td class="xl28" x:num="9153506" x:fmla="=C31+C28" style="border-bottom-style: double; border-bottom-width: thick" height="24" align="right">
      <p align="right">
  <font face="Arial" size="2">&nbsp;</font><font face="Arial" size="2">9,153,506&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <center>
    <td class="xl33" align="right" height="24"><font face="Arial" size="2">$</font></td>
    <td class="xl28" x:num="806035" x:fmla="=E31+E28" style="border-bottom-style: double; border-bottom-width: thick" height="24" align="right">
  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Arial" size="2">806,035&nbsp;&nbsp;&nbsp;</font></td>
    <td class="xl33" align="right" height="24"><font face="Arial" size="2">$</font></td>
    <td class="xl28" x:num="9959541" x:fmla="=SUM(C32:E32)" style="border-bottom-style: double; border-bottom-width: thick" height="24" align="right"><font face="Arial" size="2">&nbsp;&nbsp;
      </font><font face="Arial" size="2">9,959,541&nbsp;&nbsp;</font></td>
  </tr>
<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

  <tr height="17" style="height:12.75pt">
    <td height="21"></td>
    <td align="right" height="21"></td>
    <td height="21"></td>
    <td align="right" height="21"></td>
    <td height="21"></td>
    <td align="right" height="21"></td>
    <td height="21"></td>
  </tr>
  </table>
  </center>
</div>

<p align="center">&nbsp;</p>

    <div align="center">
      <center>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="593" style="font-family: Arial; font-size: 10pt">

  </center>

      <center>
</center>
      <center>
<font FACE="Arial" SIZE="2"><font FACE="Arial" SIZE="1">
</font>

</font>

</center>
      <center>
</center>
      <center>
  <font FACE="Arial" SIZE="1">
<font FACE="Arial" SIZE="2">

</font>

  </font>

</font>

      </center>

      <center>
<font FACE="Arial" SIZE="2"><font FACE="Arial" SIZE="1">
</font></font>

</center>
      <center>
</center>
      <center>
</center>
      <center>
<font FACE="Arial" SIZE="2"><font FACE="Arial" SIZE="1">
</font>

</font>

<font FACE="Arial" SIZE="2"><font FACE="Arial" SIZE="1">
</font>

</font>

      </center>

      <center>
</center>
      <center>
<font FACE="Arial" SIZE="2">
<tr>
    <td WIDTH="435" VALIGN="TOP" height="21"></td>
    <td WIDTH="16" VALIGN="TOP" height="21"></td>

    <td WIDTH="124" VALIGN="TOP" align="right" height="21" style="border-bottom-style: solid; border-bottom-width: thin">

<p align="center"><b>Year Ended<br>
December 31, 2002</b>

</td>
</tr>
<tr>
    <td WIDTH="435" VALIGN="TOP" height="21">Amounts pertaining to Plan:</td>
    <td WIDTH="16" VALIGN="TOP" height="21"></td>

    <td WIDTH="124" VALIGN="TOP" align="right" height="21">

</td>
</tr>
<tr>
    <td WIDTH="435" VALIGN="TOP" height="21">&nbsp;&nbsp; Plan interest in net
      depreciation and investment income of Master Trust</td>
    <td WIDTH="16" VALIGN="TOP" height="21">
      <p align="right">$</td>

    <td WIDTH="126" VALIGN="TOP" align="right" style="border-bottom-style: double; border-bottom-width: thick" height="21">&nbsp;&nbsp;(11,425)<font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

</td>
</tr>
<tr>
    <td WIDTH="435" VALIGN="TOP" height="21">&nbsp;&nbsp; <font FACE="Arial" size="2">Contributions received (cash basis)</font></td>
    <td WIDTH="16" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">$
    </font></td>

    <td WIDTH="126" VALIGN="TOP" align="right" style="border-bottom-style: double; border-bottom-width: thick" height="21">&nbsp;&nbsp;22,749<font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

</td>
</tr>
    </font>
  <tr>
    <td WIDTH="435" VALIGN="TOP" height="21"><font face="Arial" size="2">&nbsp;&nbsp;
      Assets transferred into Plan (<a href="#NOTE 12 - PLAN TRANSFERS">Note 12</a>)</font></td>
<font FACE="Arial" SIZE="2">
    <td WIDTH="16" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">$
    </font></td>

    <td WIDTH="126" VALIGN="TOP" align="right" style="border-bottom-style: double; border-bottom-width: thick" height="21">&nbsp;&nbsp;56,<font face="Arial" size="2">683&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

</td>
    </tr>
    <tr>
    <td WIDTH="435" VALIGN="TOP" height="21"><font FACE="Arial" size="2">&nbsp;&nbsp; </font>Distributions
      to participants</td>
    <td WIDTH="16" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">$
    </font></td>

    <td WIDTH="126" VALIGN="TOP" align="right" style="border-bottom-style: double; border-bottom-width: thick" height="21">&nbsp;(15,963)<font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

</td>
    </tr>
    <tr>
    <td WIDTH="435" VALIGN="TOP" height="21"><font face="Arial" size="2">&nbsp;&nbsp; Plan
      expenses</font></td>
    <td WIDTH="16" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">$
    </font></td>

    <td WIDTH="126" VALIGN="TOP" align="right" style="border-bottom-style: double; border-bottom-width: thick" height="21">&nbsp;&nbsp;(530)<font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

</td>
    </tr>
    <tr>
    <td WIDTH="435" VALIGN="TOP" height="21"><font FACE="Arial" size="2">&nbsp;&nbsp; Assets transferred
    out of Plan</font></td>
    <td WIDTH="16" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">$
    </font></td>

    <td WIDTH="126" VALIGN="TOP" align="right" style="border-bottom-style: double; border-bottom-width: thick" height="21">&nbsp;(3,270)<font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

</td>
    </tr>
    <font FACE="Arial" SIZE="1">
    </font>
    </font>
</table>

    </center>
</div>

<p align="center"><font face="Arial" size="2">9</font></p>

<hr>
<font FACE="Arial" SIZE="2">

<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>

<p align="center">&nbsp;</p>
</b></font>


<p align="left"><font FACE="Arial" SIZE="2"><a name="NOTE 7 - EMPLOYEE STOCK OWNERSHIP PLAN"><b><u>NOTE 7 - EMPLOYEE STOCK OWNERSHIP PLAN</u></b></a></p>

<font FACE="Arial" SIZE="1">

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">The ESOP has purchased approximately 14.5 million shares of $1.00 par
value Series A ESOP Convertible Preferred Stock (&quot;ESOP Shares&quot;), with a $4.80
per share annual dividend from UTC. Each ESOP share is convertible into four shares of
UTC's Common Stock. The ESOP financed the ESOP Share purchases with interest bearing
promissory notes. See Notes <a href="#NOTE 8 - ESOP DEBT"> 8</a> and <a href="#NOTE 9 - NOTES PAYABLE">9</a>.</p>

</font></font>
<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">ESOP
Shares are allocated to participant accounts of the Plan and the other ESOP
eligible Plan within the Master Trust (the "ESOP Plans") as they earn
UTC's matching contributions. ESOP Shares are released for allocation to
participants as principal and interest payments are made on the debt. The unallocated ESOP Shares are apportioned
for the purposes of these financial statements to the ESOP Plans based on the
average net asset value of the allocated shares of the Plans. The ESOP uses the ESOP Shares' cash dividends and additional
contributions from UTC to repay the principal and interest. To the extent that ESOP Shares released through debt service payments are
not sufficient to meet the matching contribution requirement, UTC must
contribute additional ESOP Shares, UTC Common Stock, or cash. To the extent that ESOP Shares released through debt service exceed the
matching contribution requirement, the debt has been restructured so that the value of
the released ESOP Shares does not exceed the ESOP Plans' matching contribution requirement.
UTC has provided certain guarantees related to the matching contribution formula
and certain
other commitments in connection with the restructured ESOP debt. For
the period ended December 31, 2002, participants were credited with matching contributions of
$71.6&nbsp; million representing approximately 269,000 shares. Additionally, in lieu of receiving cash, participants are
allocated ESOP Shares for dividends paid on their shares. As of January 1, 2002,
participants may elect to receive cash dividends. During 2002, participants earned dividends of approximately
$31.2 million
representing approximately 120,000 shares.</font>
 </p>
<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">Shares allocated to a participant generally may not be
distributed until the participant's termination, disability, retirement, or
death. Upon distribution, a
participant may elect to receive either cash or four shares of UTC Common Stock
for each ESOP Share. Each ESOP
share is valued at the higher of four times the market value of UTC's Common
Stock or $65. A participant cannot
elect to receive the distribution in ESOP Shares. The ESOP Fund's investment in ESOP Shares at period end is as follows:

<p ALIGN="JUSTIFY">&nbsp;</p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="93%" style="font-family: Arial; font-size: 10pt" height="133">
  <tr>
    <td WIDTH="29%" VALIGN="bottom" HEIGHT="18"><font face="Arial" size="1">(Thousands of
    Dollars,</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="18" colspan="3" align="center"><strong><font
    FACE="Arial" SIZE="2">December 31, 2002</font></strong></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="center"></td>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="18" colspan="3" align="center"><b><font FACE="Arial"
    SIZE="2">December 31, 2001</font></b></td>
  </tr>
  <tr>
    <td WIDTH="29%" VALIGN="TOP" HEIGHT="20"><font face="Arial" size="1">except share amounts)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="20"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="20" align="center" style="border-bottom-style: solid"><b><font FACE="Arial" SIZE="2">Allocated</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="20" align="center"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="20" align="center" style="border-bottom-style: solid"><b><font FACE="Arial" SIZE="2">Total</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="20" align="center"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="20" align="center" style="border-bottom-style: solid"><b><font FACE="Arial" SIZE="2">Allocated</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="20" align="center"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="20" align="center" style="border-bottom-style: solid"><b><font FACE="Arial" SIZE="2">Total</font></b></td>
  </tr>
  <tr>
    <td WIDTH="29%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18"></td>
  </tr>
  <tr>
    <td WIDTH="29%" VALIGN="TOP" HEIGHT="17"><font FACE="Arial" SIZE="2">Number of Shares</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="17"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="17" align="right">6,553,771&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="17" align="right"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="17" align="right">10,924,622<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="17" align="right"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="17" align="right">6,549,687&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="17" align="right"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="17" align="right">11,266,913&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="29%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">Guaranteed Value</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">425,995&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right">$</td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">710,100<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">425,730&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">732,349&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="29%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">Market
      Value</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">1,623,762<font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right">$</td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">2,706,6<font FACE="Arial" SIZE="2">79&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">1,693,225&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right">2,912,717&nbsp;&nbsp;&nbsp;</td>
  </tr>
</TABLE>

<font FACE="Arial" SIZE="2">

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">The market value of the ESOP
Shares was $247.76 and $258.52 per share at December 31, 2002 and 2001,
respectively. Further, the Net
Assets Available for Benefits in the ESOP Fund at December 31, 2002 and 2001 include unrealized appreciation of approximately
$2.0 billion and $2.2 billion,
of which $0.8 billion and $0.9 billion relates to unallocated shares.</p>
<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">The
ESOP Shares are redeemable, in whole or in part, at the option of UTC at a
redemption price of $65.00 per share plus accrued and unpaid dividends. However,
upon notice to the Trustee of UTC's intention to redeem, the trustee can convert
each preferred share into four shares of UTC Common Stock if more beneficial to
participants.
</font></p>
<p ALIGN="center">10</p>
<hr>

<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</b></p>

<p align="left"><font SIZE="2"><b><font face="Arial"><a name="NOTE 8 - ESOP DEBT"><u>NOTE 8 - ESOP DEBT</u></a></font></b></p>

<p ALIGN="JUSTIFY"><font face="Arial">In 1990, the Master Trust, with UTC as guarantor,
executed a Note and Guaranty Agreement (the &quot;Agreement&quot;) and issued $660,000,000
of Series A, B, C and D notes (described below) representing the ESOP's permanent
financing. The Series A ESOP Debt was repaid in full during 1999. The amounts outstanding
under the Agreement, with interest rates and maturity dates, are as follows at December
31, 2002:</font></p>

</font></font></font></font>

<div align="center">
  <center>

<table border="0" width="80%" cellspacing="0" cellpadding="2" height="134" style="font-family: Arial; font-size: 10pt">
  <tr>
    <td width="179" style="border-bottom-style: solid" height="36"><p align="center"><b><code><font face="Arial" size="2"><br>
    Note Series</font></code></b></td>

<font FACE="Arial" SIZE="2">

    <td width="71" height="36" style="font-family: Arial; font-size: 10pt"></td>
    </font>
    <td width="128" align="center" style="border-bottom-style: solid" height="36"><b><code><font face="Arial" size="2">Principal<br>
    (000's)</font></code></b></td>
    <font FACE="Arial" SIZE="2">
    <td width="11" align="center" height="36"></td>
    </font>
    <td width="154" align="center" style="border-bottom-style: solid" height="36"><b><code><font face="Arial" size="2">Rate of <br>
      Interest</font></code></b></td>

<font FACE="Arial" SIZE="2">

    <td width="23" align="center" height="36"></td>
    </font>
    <td width="144" align="center" style="border-bottom-style: solid" height="36"><b><code><font face="Arial" size="2"><br>
    Due</font></code></b></td>
  </tr>
  <tr>
    <td width="179" height="16"><code><font size="2" face="Arial">&nbsp;&nbsp;</font></code></td>
    <td width="71" height="16" style="font-family: Arial; font-size: 10pt"><code><font size="2" face="Arial">&nbsp;&nbsp;</font></code></td>
    <td width="126" height="16"><code><font size="2" face="Arial">&nbsp;&nbsp;</font></code></td>
    <td width="11" height="16"><code><font size="2" face="Arial">&nbsp;&nbsp;</font></code></td>
    <td width="154" height="16"><code><font size="2" face="Arial">&nbsp;&nbsp;</font></code></td>
    <td width="23" height="16"><code><font size="2" face="Arial">&nbsp;&nbsp;</font></code></td>
    <td width="144" height="16"><code><font size="2" face="Arial">&nbsp;&nbsp;</font></code></td>
  </tr>
  <tr>
    <td width="179" height="20">
      <p align="center"><code><font face="Arial" size="2">B</font></code></p>
    </td>
    <td width="71" height="20" style="font-family: Arial; font-size: 10pt"><p align="right"><code><font face="Arial" size="2">$</font></code></td>
    <td align="right" width="126" height="20">181,600&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <font FACE="Arial" SIZE="2">
    <td width="11" align="center" height="20"></td>
    </font>
    <td width="154" align="center" height="20">7.68%</td>

<font FACE="Arial" SIZE="2">

    <td width="23" align="center" height="20"></td>
    </font>
    <td width="144" align="center" height="20">2003 - 2008</td>
  </tr>
  <tr>
    <td align="center" width="179" height="21"><code><font face="Arial" size="2">C</font></code></td>

<font FACE="Arial" SIZE="2">

    <td width="71" height="21" style="font-family: Arial; font-size: 10pt"></td>
    </font>
    <td align="right" width="126" height="21">17,300
<font FACE="Arial" SIZE="2">

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <font FACE="Arial" SIZE="2">
    <td width="11" align="center" height="21"></td>
    </font>
    <td width="154" align="center" height="21">
<font FACE="Arial" SIZE="2">

7.68%</font></td>

<font FACE="Arial" SIZE="2">

    <td width="23" align="center" height="21"></td>
    </font>
    <td width="144" align="center" height="21">2008</td>
  </tr>
  <tr>
    <td align="center" width="179" height="21"><code><font face="Arial" size="2">D</font></code></td>

<font FACE="Arial" SIZE="2">

    <td width="71" height="21" style="font-family: Arial; font-size: 10pt"></td>
    </font>

  </center>
    <td align="right" width="126" height="21">
      <p align="right">&nbsp;&nbsp;32,700
<font FACE="Arial" SIZE="2">

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  <center>

    <font FACE="Arial" SIZE="2">
    <td width="11" align="center" height="21"></td>
    </font>
    <td width="154" align="center" height="21">
<font FACE="Arial" SIZE="2">

7.68%</font></td>

<font FACE="Arial" SIZE="2">

    <td width="23" align="center" height="21"></td>
    </font>
    <td width="144" align="center" height="21">2009</td>
  </tr>
  <tr>
    <td align="center" width="179" height="21" style="font-family: Arial; font-size: 10pt"></td>

  </center>
    <td width="71" height="21" style="font-family: Arial; font-size: 10pt">
      <p align="right"><font size="2" face="Arial">$</font></td>

    <td align="right" width="126" height="21" style="font-family: Arial; font-size: 10pt; border-top-style: solid; border-top-width: thin; border-bottom-style: double; border-bottom-width: thick">
      <p align="right">&nbsp;&nbsp;231,600
<font FACE="Arial" SIZE="2">

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  <center>

    <td width="11" align="center" height="21" style="font-family: Arial; font-size: 10pt"></td>
    <td width="154" align="center" height="21" style="font-family: Arial; font-size: 10pt"></td>
    <td width="23" align="center" height="21" style="font-family: Arial; font-size: 10pt"></td>
    <td width="144" align="center" height="21" style="font-family: Arial; font-size: 10pt"></td>
  </tr>
</TABLE>

  </center>
</div>

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

<font FACE="Arial" SIZE="2">

<p ALIGN="JUSTIFY">Required payments on these Notes, in
aggregate, for the next five plan years are $34.0 million in 2003, $33.6 million in 2004,
$33.2 million in 2005, $32.9 million in 2006, and $32.6 million in 2007.</p>

<p ALIGN="JUSTIFY"><b><u>NOTE 9 - NOTES PAYABLE</u></b></p>

<font SIZE="2">

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">In conjunction with the ESOP
financing discussed in <a href="#NOTE 8 - ESOP DEBT"> Note 8,</a> the Master Trust issued a promissory note to UTC issued in 1990,
bearing interest at 10.5%, and due over the period 2003 - 2009. At December 31, 2002,
$50.1 million was outstanding. Required principal payments on the note for the next
five
plan years are $5.5 million in 2003, $5.7
million in 2004, $5.9 million in 2005, $6.7 million in 2006, and $7.5 million in
2007. The Trustee executed the following additional promissory notes. These promissory notes replace a portion of the 1990 ESOP Debt notes described in
<a href="#NOTE 8 - ESOP DEBT"> Note 8</a>
above.</font></p>

<div align="center">
  <center>

<table border="0" width="481" cellspacing="0" cellpadding="2" height="247">
  <tr>
    <td width="131" style="border-bottom-style: solid" height="52"><p align="center"><b><font FACE="Arial" SIZE="2"><br>
      Dates<br>
      Issued</font></b></td>
    <td width="7" height="52"></td>
    <td width="78" align="center" style="border-bottom-style: solid" valign="bottom" height="52"><font FACE="Arial" SIZE="2"><b>Principal<br>
    (000's)</b></font></td>
    <td width="8" align="center" height="52"></td>
    <td width="76" align="center" style="border-bottom-style: solid" valign="bottom" height="52"><font FACE="Arial" SIZE="2"><b>Rate of <br>
      Interest</b></font></td>
    <td width="20" align="center" height="52"></td>
    <td width="127" align="center" style="border-bottom-style: solid" height="52" valign="bottom"><b><font FACE="Arial" SIZE="2"><br>
    Due</font></b></td>
  </tr>
  <tr>
    <td width="129" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td width="7" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td width="76" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td width="8" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td width="74" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td width="20" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
    <td width="125" height="7"><font face="Arial" size="1">&nbsp;&nbsp;</font></td>
  </tr>
  </center>
  <tr>
    <td width="129" height="21">
      <p align="left"><font face="Arial" size="2">December 10, 1997</font></p>
    </td>
    <center>
    <td width="7" height="21"><font FACE="Arial" SIZE="2"><p align="right">$</font></td>
    <td align="right" width="76" height="21"><font face="Arial" size="2">15,000&nbsp;&nbsp;&nbsp;</font></td>
    <td width="8" align="center" height="21"></td>
    </center>
</font></font></font></font></font>
    <td width="74" align="center" height="21">
      <p align="right"><font face="Arial" size="2">6.35%&nbsp;&nbsp;&nbsp;</font></p>
    </td>

<font SIZE="2">

    <center>

<font FACE="Arial" SIZE="2">

    <td width="20" align="center" height="21"></td>
    <td width="125" align="right" height="21"><font face="Arial" size="2">December
      10, 2007</font></td>
  </tr>
    <tr>
    <td align="left" width="129" height="21"><font face="Arial" size="2">December
      10, 1998</font></td>
    <td width="7" height="21"></td>

    <td align="right" width="76" height="21">
      <font face="Arial" size="2">19,000&nbsp;&nbsp;&nbsp;</font></td>

    <td width="8" align="center" height="21"></td>
    </font>
    <td width="74" align="right" height="21"><font face="Arial" size="2">5.50%&nbsp;&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td width="20" align="center" height="21"></td>
    <td width="125" align="right" height="21"><font face="Arial" size="2">December
      10, 2008</font></td>
    </tr>
    <tr>
    <td align="left" width="129" height="21"><font face="Arial" size="2">December
      10, 1999</font></td>
    <td width="7" height="21"></td>

    <td align="right" width="76" height="21">
      <font face="Arial" size="2">32,000&nbsp;&nbsp;&nbsp;</font></td>

    <td width="8" align="center" height="21"></td>
    </font>
    <td width="74" align="right" height="21"><font face="Arial" size="2">6.95%&nbsp;&nbsp;&nbsp;</font></td>

<font FACE="Arial" SIZE="2">

    <td width="20" align="center" height="21"></td>
    <td width="125" align="right" height="21"><font face="Arial" size="2">December
      10, 2009</font></td>
    </tr>
    <tr>
    <td align="left" width="129" height="21"><font face="Arial" size="2">December
      10, 2000</font></td>
    <td width="7" height="21"></td>

    <td align="right" width="76" height="21">
      <font size="2" face="Arial">27,000&nbsp;&nbsp;&nbsp;</font></td>

    <td width="8" align="center" height="21"></td>
    </font>
    <td width="74" align="right" height="21">
<font FACE="Arial" size="2">

6.72%&nbsp;&nbsp;&nbsp;</font></td>
<font FACE="Arial" SIZE="2">

    <td width="20" align="center" height="21"></td>
    <td width="125" align="right" height="21"><font face="Arial" size="2">December
      10, 2010</font></td>
    </tr>
    <tr>
    <td align="left" width="129" height="21"><font face="Arial" size="2">December
      10, 2001</font></td>
    <td width="7" height="21"></td>

    <td align="right" width="76" height="21">
      <p align="right"><font face="Arial" size="2">27,000&nbsp;&nbsp;&nbsp;</font></td>

    <td width="8" align="center" height="21"></td>
    </font>
    <td width="74" align="right" height="21"><font face="Arial" size="2">5.95%&nbsp;&nbsp;&nbsp;</font></td>

<font FACE="Arial" SIZE="2">

    <td width="20" align="center" height="21"></td>
    <td width="125" align="right" height="21"><font face="Arial" size="2">December
      10, 2011</font></td>
    </tr>
  <tr>
    <td align="left" width="129" height="21"><font FACE="Arial" SIZE="2">December
      10, 2002</font></td>
    <td width="7" height="21"></td>

    <td align="left" width="76" height="21">
      <p align="right"><font face="Arial" size="2">&nbsp;&nbsp;23,000&nbsp;&nbsp;&nbsp;</font></p>
  </td>

    <td width="8" align="center" height="21"></td>
    </font>
    <td width="74" align="right" height="21"><font face="Arial" size="2">5.58%&nbsp;&nbsp;&nbsp;</font></td>

<font FACE="Arial" SIZE="2">

    <td width="20" align="center" height="21"></td>
    <td width="125" align="right" height="21"><font face="Arial" size="2">December
      10, 2012</font></td>
  </tr>
  <tr>
    <td align="center" width="129" height="26"></td>

    <td width="7" height="26">
      <p align="right"><font face="Arial" size="2">$</font></td>

    <td align="left" width="78" style="border-top-style: solid; border-top-width: thin; border-bottom-style: double; border-bottom-width: thick" height="26">
      <p align="right"><font face="Arial" size="2">&nbsp;&nbsp;143,000&nbsp;&nbsp;&nbsp;</font></p>
  </td>

    <td width="8" align="center" height="26"></td>
    <td width="74" align="center" height="26"></td>
    <td width="20" align="center" height="26"></td>
    <td width="125" align="center" height="26"></td>
  </tr>
</TABLE>

  </center>
</div>

<p ALIGN="JUSTIFY">&nbsp;</p>

<u><b>

<p align="left"><font face="Arial">NOTE 10 - RELATED-PARTY TRANSACTIONS</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">Certain Plan investment options are investments
managed by Deutsche Asset Management and Fidelity. Deutsche Bank Trust Company
Americas, a subsidiary of Deutsche Bank, and Fidelity are the Plan's trustee and
recordkeeper, respectively, as defined by
the Plan and, therefore, these transactions qualify as party-in-interest transactions.</font></p>

<p ALIGN="JUSTIFY"><font face="sans-serif" size="2">The Plan holds common and
preferred shares of UTC, the Plan sponsor, and these qualify as
party-in-interest transactions. &nbsp;</font></p>

<p ALIGN="JUSTIFY"><font face="sans-serif" size="2">The Plan invests in the UTC
Common Stock Fund (the &quot;Fund&quot;), which is comprised of a short-term
investment fund component and shares of common stock of UTC. &nbsp;The unit
values of the Fund are recorded and maintained by Fidelity. &nbsp;During the
year ended December 31, 2002, the Plan purchased units of the Fund in the
approximate amount of $</font></font></font></font><font face="sans-serif" size="2">4,020,000</font><font face="sans-serif" size="2"><font FACE="Arial" SIZE="2">, sold units of the Fund in the approximate
amount of $</font>3,519<font FACE="Arial" SIZE="2">,000, and had net depreciation on the Fund in the approximate
amount of $</font>342</font><font FACE="Arial" SIZE="2"><font face="sans-serif" size="2">,000. The total value of the Plan's interest in the Fund was</font>
approximately </font><font face="sans-serif" size="2"><font FACE="Arial" SIZE="2">$</font>8,262</font><font face="sans-serif" size="2"><font FACE="Arial" SIZE="2">,000 and
  $</font>8,103</font><font FACE="Arial" SIZE="2"><font face="sans-serif" size="2">,000 at December 31, 2002 and 2001, respectively.</font></p>

<u><b>

<p align="left"><font face="Arial">NOTE 11 - PLAN TERMINATION</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">Although it has not expressed any intent to do so,
UTC has the right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA and to certain Plan provisions that
limit this right when certain ESOP loans remain outstanding. In the event of Plan
termination, participants will become 100 percent vested in their accounts.</font></p>

<p ALIGN="center">11</p>

<hr>
<font FACE="Arial" SIZE="2">

<b>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</b></p>

</font><u><b>

<p align="left"><font face="Arial"><a name="NOTE 12 - PLAN TRANSFERS">NOTE 12 - PLAN TRANSFERS</a></font></b></u></p>

<p align="justify"><font face="Arial"><font face="Arial">During 2001, UTC approved the merger of
the YZ Industries, Inc. 401(k) Profit Sharing Plan into the Plan. Participants
of the YZ Industries, Inc. 401(k) Profit Sharing Plan are eligible to
participate in the Plan effective January 2, 2002. On January 4, 2002,
approximately $2,800,000 of net assets were transferred into the Plan.</p>

</font>

<p ALIGN="JUSTIFY"><font face="Arial">During 2001, UTC approved the merger of the Specialty
Equipment Companies Retirement Savings Plan into the Plan. Participants of the Specialty Equipment Companies Retirement Savings Plan
are eligible to participate in the Plan effective January 15, 2002. On January
15, 2002, approximately $30,651,000 of net assets were transferred into the
Plan.</p>
<p ALIGN="JUSTIFY">During 2001, UTC approved the merger of the Cade
Industries, Inc. Employee Savings Plan into the Plan. Participants of the Cade Industries, Inc. Employee Savings Plan are
eligible to participate in the Plan effective February 1, 2002. On February 1,
2002, approximately $6,468,000 of net assets were
transferred into the Plan.</p>
<p ALIGN="JUSTIFY">During 2001, UTC approved the merger of the Keystone
Engineering Company Profit-Sharing Retirement Plan into the Plan. Participants of the Keystone Engineering Company
Profit-Sharing Retirement Plan are eligible to participate in the Plan effective
February 1, 2002. On February 4, 2002, approximately $3,698,000 of net assets were transferred into the Plan.</p>
<p ALIGN="JUSTIFY"><font face="sans-serif" size="2">During 2001, UTC approved
the merger of the Carter-Hoffmann Corporation Profit Sharing Plan into the Plan.
&nbsp;Participants of Carter-Hoffmann Corporation Profit Sharing Plan are
eligible to participate in the Plan effective January 3, 2002. &nbsp;On January
3, 2002, approximately $5,885,000 of net assets were transferred </font></font></font></font><font face="sans-serif" size="2">into
</font><font FACE="Arial" SIZE="2"><font face="Arial"><font face="sans-serif" size="2">the Plan.</font></p>
</font>

<p ALIGN="JUSTIFY"><u><b>NOTE 13 - TAX STATUS</b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">The Internal Revenue Service has determined and
informed UTC by letter dated April 28, 2003, that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue Code
(&quot;IRC&quot;). The Plan administrator and tax counsel believe that the Plan is designed and
currently being operated in compliance with the applicable requirements of the IRC.</font></p>

<u>

<b>

<p align="left"><font face="Arial">NOTE 14 - SUBSEQUENT EVENTS</font></p>

</b>

</u>

<font face="Arial">
<font face="Arial">

<p ALIGN="JUSTIFY">During 2002, UTC approved the merger of Derco Aerospace, Inc. 401(k) Savings
Plan (&quot;Derco Plan&quot;) into the Plan. Participants of the Derco
Plan are eligible to participate in the Plan effective December 31,
2002.&nbsp; Subsequent to year-end, approximately $11,092,000 of net assets were transferred
into the Plan.</p>

<p ALIGN="JUSTIFY"></font></font>During 2002, UTC approved the merger of Diehl Equipment Co., Inc. 401(k) Plan
into the Plan. Participants of Diehl Equipment Co., Inc. 401(k) Plan are
eligible to participate in the Plan effective January 31, 2003. Subsequent to
year-end, approximately $1,474,000 of net assets were transferred into the Plan.</p>

<p ALIGN="JUSTIFY">During 2002, UTC approved the merger of the United Electric
Plan into the Plan and into the United Technologies Corporation Represented
Employee Savings Plan.&nbsp; Salary participants of the United Electric Plan
were eligible to participate in the Plan effective April 1, 2001.&nbsp;
Subsequent to year-end, approximately $1,511,000 of net assets were transferred
into the Plan.&nbsp;&nbsp;</p>

<p ALIGN="JUSTIFY">Subsequent to year-end, UTC approved the merger of the Plan
into the United Technologies Corporation Employee Savings Plan.&nbsp; The merger
is expected to be completed by December 31, 2003.</p>

<p ALIGN="center">12</p>

<hr>

<p align="center"><font FACE="Arial" SIZE="2"><b>SIGNATURES</b></font></p>

<p><font FACE="Arial" SIZE="2">&nbsp;</p>

<p ALIGN="JUSTIFY">The Plan (or other persons who administer the employee benefit plan),
pursuant to the requirements of the Securities Exchange Act of 1934, has duly caused this
annual report to be signed on its behalf by the undersigned hereunto duly authorized.</font><font
FACE="Courier New" SIZE="2"></p>

<p></font><font SIZE="2">&nbsp;</p>

<font FACE="Arial" size="2">

<b>

<table border="0" cellpadding="2" cellspacing="0" width="100%" style="font-family: Arial; font-size: 10pt" height="183">
  <tr>
    <td width="25%" height="31"></td>
    <td width="4%" height="31"></td>
</b>
    <td width="52%" height="31">
<b>UNITED TECHNOLOGIES</b>

<b>

<font FACE="Arial" size="2"> CORPORATION<br>
EMPLOYEE SAVINGS PLAN II</font>
</b>
    </td>
    <td width="19%" height="31"></td>
  </tr>
</font>
<b>
<tr>
  <td width="25%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="4%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="52%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="19%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
</tr>
<tr>
  <td width="25%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="4%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="52%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="19%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
</tr>
<tr>
  <td width="25%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="4%" height="18">
<font face="Arial" size="2">&nbsp;</font>
  </td>
  <td width="52%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
  <td width="19%" height="18">
<font face="Arial" size="2">&nbsp;&nbsp;</font>
  </td>
</tr>
</b>
<font FACE="Arial" size="2">
<tr>
  <td width="25%" height="18">Dated:&nbsp; June 30, 2003</td>
  <td width="4%" height="18">By:</td>
  <td width="52%" style="border-bottom-style: solid; border-bottom-width: thin" height="18">/s/
    Laurie P. Havanec</td>
<b>
  <td width="19%" height="18"></td>
</tr>
<tr>
  <td width="25%" height="34"></td>
  <td width="4%" height="34"></td>
</b>
  <td width="52%" height="34">
<font FACE="Arial" size="2">Laurie P. Havanec<br>
 Director, Employee Benefits and Human Resources Systems<br>
United Technologies Corporation</font>
  </td>
<b>
  <td width="19%" height="34"></td>
</tr>
</b>
</font>
<b>
<tr>
  <td width="25%" height="18"><font face="Arial">&nbsp; </font></td>
</b>
  <td width="4%" height="18"><font face="Arial">&nbsp; </font></td>
<b>
  <td width="52%" height="18">
<font face="Arial">&nbsp; </font>
  </td>
  <td width="19%" height="18"><font face="Arial">&nbsp; </font></td>
</tr>
</table>
</b>
<p align="center">13</p>
<hr>

<font FACE="Arial" SIZE="2"><b>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <u>
        <p ALIGN="CENTER"><a name="EXHIBIT INDEX">EXHIBIT INDEX</a></p>
        </u>
        <p ALIGN="CENTER">&nbsp;</p>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
</b>
<table border="0" cellspacing="0" width="100%" cellpadding="0" style="font-family: Arial; font-size: 10pt">
  <tr>
    <td width="12%" align="right" height="18"><font face="Arial" size="2">(23)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width="88%" height="18"><font face="Arial" size="2">Consent of
      Independent Auditors *</font></td>
  </tr>
  <b><i>
  <tr>
    <td width="12%" height="18" style="font-family: Arial; font-size: 10pt" align="right"></td>
    <td width="88%" height="18" style="font-family: Arial; font-size: 10pt"></td>
  </tr>
  </i></b>
  <tr>
    <td width="12%" align="right" height="18" valign="top"><font face="Arial" size="2">(99)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width="88%" height="18"><font face="Arial" size="2">Certification
      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
      the Sarbanes-Oxley Act of 2002, signed and dated by Laurie P. Havanec and
      David L. Porter as of June 30, 2003. *</font></td>
  </tr>
</table>
<p>* Submitted electronically herewith.</p>
</font>
<p align="center"><font face="Arial" size="2">14</font></p>
<hr>

</font>
</font>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>planiiex99.htm
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<html>

<head>
<title>Certification</title>
</head>

<body>

<b>
<p ALIGN="right"><font face="Arial" size="2">Exhibit 99</font></p>
<p ALIGN="CENTER"><font face="Arial" size="2">Certification<br>
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002<br>
(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States
Code)</font></p>
<p ALIGN="CENTER">&nbsp;</p>
</b>
<p ALIGN="JUSTIFY"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp; Pursuant to section 906 of the
Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63
of title 18, United States Code), each of the undersigned of United
Technologies Corporation, a Delaware corporation (the &quot;<u>Company</u>&quot;),
does hereby certify that:</font></p>
<p ALIGN="JUSTIFY"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp; The Annual
Report for the United Technologies
Corporation Employee Savings Plan II on Form
11-K for the year ended December 31, 2002 (the &quot;<u>Form 11-K</u>&quot;) fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934 and information contained in the
Form&nbsp;11-K fairly presents, in all material respects, the financial
condition and results of operations of the Plan.</font></p>
<p>&nbsp;</p>
<table border="0" cellspacing="1" width="85%">
  <tr>
    <td width="9%"><font face="Arial" size="2">Date:</font></td>
    <td width="26%"><font face="Arial" size="2">June 30, 2003</font></td>
    <td width="65%" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">/s/
      Laurie P. Havanec</font></td>
  </tr>
  <tr>
    <td width="9%" style="font-family: Arial; font-size: 10pt"></td>
    <td width="26%" style="font-family: Arial; font-size: 10pt"></td>
    <td width="65%"><font face="Arial" size="2">Laurie P. Havanec<br>
      Director, Employee Benefits and Human Resource Systems<br>
      United Technologies Corporation</font></td>
  </tr>
  <tr>
    <td width="9%" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="2">&nbsp; </font></td>
    <td width="26%" style="font-family: Arial; font-size: 10pt"><font face="Arial" size="2">&nbsp; </font></td>
    <td width="65%"><font face="Arial" size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="9%"><font face="Arial" size="2">Date:</font></td>
    <td width="26%"><font face="Arial" size="2">June 30, 2003</font></td>
    <td width="65%" style="border-bottom-style: solid; border-bottom-width: thin"><font face="Arial" size="2">/s/
      David L. Porter</font></td>
  </tr>
  <tr>
    <td width="9%"></td>
    <td width="26%"></td>
    <td width="65%"><font face="Arial" size="2">David L. Porter<br>
      Assistant Controller, Financial Reporting and Accounting<br>
      United Technologies Corporation</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp; A signed original of this
certification has been provided to the Company and will be retained by the
Company and furnished to the Securities and Exchange Commission or its staff
upon request. The foregoing certification is accompanying the Form 11-K solely
pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and
(b) of section 1350, chapter 63 of title 18, United States Code) and is not
being filed as part of the Form 11-K or as a separate disclosure document.</font></p>
<hr>

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<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>5
<FILENAME>planiiex23.htm
<TEXT>
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<head>
<TITLE>planIIex23</TITLE>
</head>

<body>
<font SIZE="2">

<p align="right"></font><font FACE="Arial" SIZE="2"><b>Exhibit 23</b></font><font SIZE="2"></p>
<b>

<p align="center"></b></font>
<b>

<font FACE="Arial" SIZE="2"><u>CONSENT OF INDEPENDENT AUDITORS</u></font></b></p>

<p><font FACE="Arial" SIZE="2">&nbsp;</p>

<p align="justify">We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 333-18743) of United Technologies Corporation of our report
dated June 27, 2003 relating to the financial statements of the United Technologies
Corporation Employee Savings Plan II, which appears in this Form 11-K.</font><font
SIZE="2"></p>

<p>&nbsp;</p>

</font><font FACE="Arial" SIZE="2">

<p>/s/ PricewaterhouseCoopers LLP<br>
PricewaterhouseCoopers LLP<br>
Hartford, Connecticut<br>
June 27, 2003</p>
</font>
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