I am changing the form of a plan from an ESOP to a profit sharing plan. I anticipate that, shortly thereafter, the company stock will no longer be readily tradable on an established securities market. Currently the stock is publicly traded on the NYSE.

When the stock becomes no longer readily tradable, must I include a put option in the profit sharing plan thereby preserving what would have otherwise been required to be done if the plan were still an ESOP? Alternatively, can I eliminate in-kind distributions once the stock becomes not readily tradable as I would be able to do if the plan were still an ESOP under the ESOP and stock bonus plan exceptions of the 1.411(d)-4 regulations? If so, how do the limitations of the ESOP investment requirement of 1.411(d)-4 Q&A 2 come into play once I change the plan to a profit sharing plan?

I think I answered part of my own question. IRS Announcement 95-33 and regulation 54.4975-11(a)(3)(ii) state the put right is "nonterminable" with respect to shares acquired with the proceeds of an exempt loan even in the event the ESOP changes in form to a non-ESOP. Does the same rule not apply to non-leveraged shares or is the right also "nonterminable" with regard to those shares?