6. A report outlining the stock ownership of AMTROL as of August, 1978. You will note that this report indicates that ESOP ownership of AMTROL shares is approximately 20% in just three years. In addition, noted on this report are six (6) shareholders who received their stock under our Employee Stock Ownership Plan and retained it rather than exercise the PUT which was issued to them at the time of distribution.

In closing, we wish to state that all of our Employee Shareholders recognize the benefits of the ESOP, and we are continually trying to improve their understanding through education and communication. Our experience has been excellent, our contributions for the three years since its adoption have been the maximum allowed by law (i.e., 15% of total eligible compensation), and we expect to enjoy the benefits of the strong relationship that develops between a company and its employees under the ESOP concept.

We are pleased to be able to participate in the Senate hearings.
Very truly yours,

Enclosures

To: C. H. Kirk and A. N. D'Amico.

From: E. F. Almon.

A. N. D'AMICO,
Vice Chairman of the Board.

AMTROL INC.,

West Warwick, R.I., August 4, 1978.

Subject: AMTROL employee stock ownership plan.

The presentations to participants of the AMTROL Inc. Employee Stock Ownership Plan have been proceeding as scheduled and the time is appropriate to report to you on the following:

1. The progress of the presentations to individuals and groups.

2. The type of information the presentations attempt to disseminate.

3. The reaction of participants to the presentation.

1. Progress of the presentations to individuals and groups

Following our previous policy, we have made group presentations to every U.S. employee of AMTROL.

The individual one-on-one interviews presenting the Report to the participant are about two-thirds complete. There are now 529 participants in the Plan so the magnitude of the task is apparent. However, the work is nothing compared to the positive reaction on the part of each participant to be able to sit down with an officer of the Company. Much of the positive results of the program would be lost if we made a simple mailing of the Reports because:

1. The printed word is losing much of its impact and is an area in which the average employee often feels inept.

2. A mailing is a unilateral form of communication and does not encourage any dialogue or input from the employee.

3. The employee is made to feel that he belongs when someone takes the time to sit down with him to discuss the Company and his personal position in it. 2. The type of information the presentations attempt to disseminate

A. Group Presentation: This presentation made to every U.S. employee had three main objectives:

1. A showing of the film "60 Minutes" providing everyone with an excellent background of the philosophy of ESOP.

2. A review of the status of the Trust Fund.

3. A review in detail of the 1977 Financial Report.

This is followed by a question and answer period during which we refer to the handbook.

B. Individual Presentation: A very detailed review of the employee's position in the Plan. (See attached example).

3. Reaction of participants to the presentation

I feel that there is a much better understanding of the ESOP this year because: 1. The Plan has now been in effect for three-years.

2. The film "60 Minutes" was worth showing again and especially beneficial to those who were not here at the outset of the Plan.

3. The employees are aware that retired participants have received substantial benefits. (See attached)

There has been a very definite improvement in the morale of the employees. This is evident in conversations in which the word "THEY" is seldom used when referring to management. Most employees now use the word "WE" when discussing AMTROL.

There has been a definite increase in efficiency as shown by the reduction in manufacturing costs to 71.3% from 72.9%.

There has been improvement in attendance as reported by Personnel. The employees want the Company to prosper and realize that they share in the ESOP contributions as a percentage of their gross pay.

The physical appearance of the Plant, while previously good through the efforts of the management, is now just as good and it is maintained this way at less expense because each employee has a sense of ownership.

We have put a lot of time, money and effort into the ESOP at AMTROL, but I'm convinced that it is paying off in improved morale, increased efficiencies and a general feeling that everyone at AMTROL has a "Piece of the Action."

EXHIBIT 4

ESOP

The AMTROL

EMPLOYEE

STOCK

OWNERSHIP

PLAN

Answers to questions some AMTROL employees

have asked