Document:

EXHIBIT 10.123

THE SMITH & WOLLENSKY RESTAURANT GROUP, INC.

CHANGE IN CONTROL PROTECTION PLAN

AND
SUMMARY PLAN DESCRIPTION

 

THE SMITH & WOLLENSKY
RESTAURANT GROUP, INC.

CHANGE
IN CONTROL PROTECTION PLAN AND SUMMARY PLAN DESCRIPTION

TABLE
OF CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
  1.

  	
  ELIGIBILITY

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  RETENTION BENEFIT

  	
  2

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  General

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Payment

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Definition of Change in Control

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  SEVERANCE BENEFIT

  	
  3

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  General

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Payment

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Definitions

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  TAXES AND OTHER WITHHOLDINGS

  	
  5

  
	
   

  	
   

  	
   

  
	
  5.

  	
  RELATION TO OTHER PLANS

  	
  5

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CLAIMS PROCEDURES

  	
  5

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Formal Claims Typically Not Required

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Disputes

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Time for Filing Claims

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Procedures

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  PLAN ADMINISTRATION

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Discretion

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Finality of Determinations

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Drafting Errors

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Scope

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  ARBITRATION OF DISPUTES

  	
  8

  
	
   

  	
   

  	
   

  
	
  9.

  	
  PLAN AMENDMENT AND TERMINATION; LIMITATION ON
  EMPLOYEE RIGHTS

  	
  8

  
	
   

  	
   

  	
   

  
	
  10.

  	
  GOVERNING LAW

  	
  8

  
	
   

  	
   

  	
   

  
	
  11.

  	
  MISCELLANEOUS

  	
  8

  
	
   

  	
   

  	
   

  
	
  12.

  	
  OTHER INFORMATION

  	
  9

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Type of Plan

  	
  9

  

 i
 

 

	
  

  	
  (b)

  	
  Addresses, etc

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Agent for Service of Legal Process

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Funding

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  Plan Amendment or Termination

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  Statement of ERISA Rights

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  Whom to Call for Additional Information

  	
  10

  

 

 ii

THE SMITH & WOLLENSKY
RESTAURANT GROUP, INC.

CHANGE IN CONTROL
PROTECTION PLAN AND SUMMARY PLAN DESCRIPTION

The Smith & Wollensky Restaurant Group, Inc. and
its subsidiaries (together, the “Company”)
recognize that a corporate change in control may adversely affect certain
employees.  To treat these employees in a
fair and compassionate manner, The Smith & Wollensky Restaurant Group, Inc.
has adopted this Change in Control Protection Plan (the “Plan”).

This document is the Plan’s plan document and it also
serves as its Summary Plan Description (“SPD”). 
This Plan will control in case of conflict with any other document.  The Plan became effective April 16, 2007 and
was amended effective April 30, 2007.  
Throughout this Plan, the term “Sponsor”
is used when the Company is acting in its non-fiduciary capacity as Plan
sponsor and settlor.  The term “Plan Administrator” is used when the
Company is acting in the limited capacity of interpreting the Plan and
determining eligibility for benefits (see Section 7 below for detailed
information). References to the Company also refer to its affiliates and any
successors to their interests.

1.                                      Eligibility

You are eligible for this Plan only if the Company has
provided you with a Participation Letter Agreement (the “Letter Agreement”) signed by a duly
authorized officer of the Company confirming your eligibility for the
Plan.  The Letter Agreement shall be in
the form attached hereto as Exhibit A or in such other form as the
Company’s Board of Directors or the Compensation Committee of the Company’s
Board of Directors shall approve.  If you
execute the Letter Agreement and return it to the Company within 30 days after
receiving it:

(a)           you
will become a “Participant”
on the date the Company receives your properly executed Letter Agreement;

(b)           you
will continue to be a Participant as long as your Letter Agreement remains in
effect in accordance with its terms and those of this Plan; and

(c)           you
will immediately cease to be a Participant if your Letter Agreement expires for
any reason before you become vested in the right to collect the benefits
described in Sections 2 through 4 below (“Change in Control
Benefits”).

 1
 

2.                                      Retention
Benefit

(a)                                  General

You will become entitled to a retention benefit
pursuant to this Plan if, while this Plan is in effect and while you are
eligible under Section 1 for Plan participation, a Change in Control (as
defined below) occurs and, if required in your Letter Agreement, you remain
employed with the Company until the date set forth in your Letter Agreement (“Retention Date”).  This retention benefit (“Change in Control Retention Benefit”)
shall be determined pursuant to the Letter Agreement that you sign pursuant to
Section 1 as a condition to becoming a Plan participant.  If your employment with the Company
terminates for any reason other than a Covered Termination (as defined under
Section 3(c) of the Plan) before the Change in Control and, if applicable, the
Retention Date, you will not be eligible for benefits under this Plan. You will
be entitled to benefits under this Section 2 if you incur a Covered Termination
as defined under Section 3(c) of the Plan after you satisfy the eligibility
requirements described in Section 1.

(b)                                  Payment

If you become entitled to receive it, the Company will
pay you your Change in Control Retention Benefit in a lump sum cash payment
(less tax and other required withholdings) within 30 days following the later
of the date of the Change in Control or, if applicable, the Retention Date.

(c)                                  Definition
of Change in Control

The term “Change
in Control” shall mean the occurrence of any of the following
events that are intended to qualify as and should be interpreted in a manner
consistent with a “change in control event” as defined under Treas. Reg. §
1.409A-3(i)(5):

(i)            the
consummation of a merger, consolidation, statutory share exchange, or similar
form of corporate transaction (whether in one or a series of related
transactions) involving the Company, unless immediately following such
transaction more than fifty percent (50%) of the outstanding securities
entitled to vote generally in the election of directors or other capital
interests of the acquiring corporation or entity is owned, directly or
indirectly, by persons who were stockholders of the Company immediately prior
to the transaction or transactions; or

(ii)           any
person (as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of
the Exchange Act of 1934, as amended (the “Exchange Act”))
is or becomes, without the prior approval of the Company’s Board of Directors,
the  beneficial owner (as the term “beneficial
owner” is defined under Rule 13d-3 or any successor rule or regulation thereto
under the Exchange Act), directly or indirectly, of securities of the Company
representing thirty percent (30%) or more of the combined voting power of the
then outstanding voting securities of the Company; or

(iii)          the
individuals who constituted the Company’s Board of Directors at the beginning
of any calendar year (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the Company’s Board
of Directors at the end of such calendar year; provided that any person
becoming a director subsequent to the beginning of such calendar year, whose
election or nomination for election was approved by a vote of at least
two-thirds of the Incumbent Directors then members of the Company’s Board of
Directors shall be an Incumbent Director; or

 2
 

(iv)          a
sale, transfer, or other disposition of the Company’s assets representing
forty-percent (40%) or more of the aggregate fair market value of the Company’s
assets and properties is closed or consummated, provided that no change in
control shall be deemed to have occurred if there is a transfer to a related
entity specified in Treas. Reg. § 1.409A-3(i)(5)(vii)(B).

3.                                      Severance
Benefit

(a)                                  General

You will become entitled to a severance benefit
pursuant to this Plan if, while this Plan is in effect and while you are
eligible under Section 1 for Plan participation, you incur a Covered
Termination (defined below) on or after a Change in Control.  The severance benefit (“Change in Control Severance Benefit”)
shall be determined pursuant to the Letter Agreement that you sign pursuant to
Section 1 as a condition for becoming a Plan participant and shall be
considered “Paid Leave in Lieu of Notice” in accordance with the requirements
of the Federal Worker Adjustment and Retraining Notification Act (29 U.S.C. §§
2101 et seq.), and any similar state worker protection law.

If you terminate employment for any reason other than
a Covered Termination, you will not be eligible for Change in Control Severance
Benefits.  For example, you will not be
eligible for Change in Control Severance Benefits under the Plan if the Plan
Administrator determines, in its sole discretion, that your active employment
has either (i) terminated before a Change in Control closes, or (ii) terminated
on or after a Change in Control, by reason of —

(i)            your
resignation  without Good Reason (as
defined herein);

(ii)           your death;

(iii)          your discharge for
Cause (as defined below)

Notwithstanding anything in this Section 3 to the
contrary, you will not be eligible for Change in Control Severance Benefits
under the Plan if you are offered employment with any entity or person that
acquires the Company (including Alan Stillman or any entity he directly or
indirectly controls) at a salary that is not 5% less than your salary prior to
the Change in Control and that does not require you to move from your current
work location.

(b)                                  Payment

If you become entitled to receive it, the Company will
pay you your Change in Control Severance Benefit over a period of six (6)
months (the “Severance Payment Period”) in equal monthly installments
commencing within thirty (30) days following your Covered Termination.  Change in Control Severance Benefit payments
will cease if you are offered employment during the Severance Payment Period
with any entity or person that acquires the Company (including Alan Stillman or
any entity he directly or indirectly controls) at a salary that is not 5% less
than your salary prior to the Change in Control and that does not require you
to move from your current work location. After benefit payments under this
Section 3 have been ceased, the Plan Administrator, in its sole discretion, may
require you to return any benefits already paid to you under this Section
3.   Notwithstanding anything in this
Plan to the contrary, if at the time your Change in Control Severance Benefit
is due, you are a specified employee” within the meaning of Code Section
409A(a)(2)(B)(i), 

 3
 

the Company shall delay any Change in Control
Severance Benefit that constitutes a “deferral of compensation” under Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”) (after
application of Treas. Reg. § 1.409-1(b)(9)) until six months after you “separate
from service” as defined under Section 409A (the “409A Suspension Period”).  Within fourteen calendar days after the end
of the 409A Suspension Period, the Company shall pay you a lump sum payment in
cash equal to any payments (including interest on any such payments, at an
interest of not less than the prime interest rate, as published in the Wall
Street Journal, over the period such payment is restricted from being paid to
you) and benefits that the Company would otherwise have been required to
provide you under Section 3 but for the imposition of the 409A Suspension
Period.  Thereafter, you shall receive
any remaining payments and benefits due under this Section 3 in accordance with
the terms of this Section (as if there had not been any suspension period
beforehand).

(c)                                  Definitions

(i)            For
purposes of this Plan, a “Covered
Termination” shall mean that, at any time on or after the
later of a Change in Control or, if applicable, the Retention Date, either (i)
you have resigned from the Company for Good Reason (as defined below) within
six months of the initial occurrence of the condition that constitutes Good
Reason (as defined below), or (ii) your employment with the Company is
involuntarily terminated by the Company without Cause (as defined below);
provided, however, your employment with the Company shall not be considered
involuntarily terminated in connection with the liquidation, dissolution,
merger, consolidation or reorganization of the Company, or the transfer of all
or substantially all of the Company’s assets if the successor (by liquidation,
dissolution, merger, consolidation, reorganization, transfer or otherwise) to
which all or substantially all of its assets have been transferred (directly or
by operation of law) assumes the duties and obligations of the Company under
this Plan.

(ii)           For
purposes of this Plan, “Cause” shall mean (i) the refusal or failure by you to
substantially perform your duties with the Company or to comply in all material
respects with the policies of the Company or any affiliate other than an actual
or anticipated failure after the date a notice of termination for a bona fide
Good Reason is given by you to the Company, provided in the latter case that
circumstances giving rise to Good Reason in fact exist and are not cured by the
Company within thirty (30) days following such notice; (ii) your engagement in
conduct which is materially injurious, monetarily or otherwise, to the Company
or its affiliates; (iii) your commitment of one or more significant acts of
dishonesty; (iv) your repeated failure to follow a lawful and material
directive from your direct or indirect supervisor; or (v) your conviction,
guilty plea or plea of nolo contendere either to any felony, or to any
misdemeanor involving dishonesty or moral turpitude, in each case, after you
have been given written notice of such and have failed to cure such within
thirty (30) days following such notice.

(iii)          For
purposes of this Plan, “Good Reason” shall mean (i) a 5% or greater reduction
by the Company in your base salary below the amount in effect immediately prior
to the Change in Control or (ii) the requirement that you change your principal
location of work to any location that is more than 25 miles from its location
immediately before the Change in Control or, for a Participant who works in
Manhattan, a location outside of Manhattan, in each case under clauses (i) or
(ii) after you have notified the Company in writing of such condition within 90
days of the initial occurrence of the condition and the Company has failed to
cure such condition within thirty (30) days following such notice.

 4
 

4.                                      Taxes and
Other Withholdings

Your Change in Control benefits will be subject to
withholdings for taxes and any other required payroll deductions.

5.                                      Relation to
Other Plans

Except as otherwise expressly provided in this
paragraph or in your Letter Agreement, by signing your Letter Agreement, you
recognize and agree that any prior retention, severance or similar plan of the
Company that might apply to you is hereby revoked and ineffective as to
you.  Notwithstanding the foregoing, if
you become entitled to receive benefits under the Company’s 2005 Management
Retention Plan, then you shall not receive any benefits under this Plan.  No benefits that would constitute “excess
parachute payments” within the meaning of Internal Revenue Code Section 280G,
or cause any other amounts to be excess parachute payments, will be payable
under this Plan.

6.                                      Claims Procedures

(a)                                  Formal
Claims Typically Not Required

Typically, you will not need to present a formal claim to receive
the Change in Control Benefits payable under this Plan.

(b)                                  Disputes

If any person (claimant) believes that Change in Control Benefits
are being denied improperly, that the Plan is not being operated properly, that
fiduciaries of the Plan have breached their duties, or that the claimant’s
legal rights are being violated with respect to the Plan, the claimant must
file a formal claim with the Plan Administrator within the time period set forth
in Section 6(c).  The Plan Administrator
will handle all such claims in accordance with the procedures set forth in
Section 6(d).  This requirement applies
to all claims that any claimant has with respect to the Plan, including claims
against fiduciaries and former fiduciaries, except to the extent the Plan
Administrator determines, in its sole discretion, that it does not have the
power to grant all relief reasonably being sought by the claimant.  See Section 12(f) for information about your rights in the event the Plan
Administrator denies your claim.

(c)                                  Time for
Filing Claims

A formal claim must be filed within ninety (90) days after the
date the claimant first knew or should have known of the facts on which the
claim is based (or, if earlier, the date that is 120 days after your employment
terminates for any reason), unless the Sponsor in writing consents
otherwise.  The Plan Administrator will
provide a claimant, on request, with a copy of the claims procedures
established under subsection 6(d). If a
claimant files an untimely claim, no Change in Control Benefits of any kind
shall be payable under the Plan.

(d)                                  Procedures

If the Plan Administrator does not offer a Participant the payment
of Plan Change in Control Benefits under this Plan within 10 days after the
Participant terminates employment, the 

 5
 

Participant must file a claim for benefits on a form prescribed by
the Plan Administrator and within the time frame set forth in subsection (c)
above.  If the claimant’s claim for a
benefit is wholly or partially denied, the Plan Administrator will furnish the
claimant with a written notice of the denial. 
This written notice must be provided to the claimant within a reasonable
period of time after the receipt of the claimant’s claim by the Plan Administrator
(generally within ninety (90) days after employment terminates for any reason,
unless special circumstances require an extension of time for processing the
claim, in which case a period not to exceed one hundred and eighty (180) days) after receipt by the Plan Administrator of
the claimant’s claim for review. If such an extension of time is
required, written notice of the extension will be furnished to the claimant
prior to the termination of the initial 90-day period, and will indicate the
special circumstances requiring the extension. Written notice of denial of the
claimant’s claim must contain the following information:

(i)                           the specific
reason or reasons for the denial;

(ii)                        a specific
reference to those provisions of the Plan on which such denial is based;

(iii)                     a
description of any additional information or material necessary to perfect the
claimant’s claim, and an explanation of why such material or information is
necessary; and

(iv)                    a copy of
the appeals procedures under the Plan and the time limits applicable to such
procedures, including a statement of the claimant’s right to bring a civil
action under Section 502(a) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”) following an adverse determination of the claimant’s
claim.

If the claimant’s
claim has been denied, and the claimant wishes to submit his or her request for
a review of his or her claim, the claimant must follow the following Claims
Review Procedure:

1.                                       Upon the denial of his or her claim
for benefits, the claimant may file his or her request for review of his or her
claim, in writing, with the Plan Administrator or claims processor;

2.                                       The claimant must file the claim
for review not later than sixty (60) days after he or she has received written
notification of the denial of his or her claim for benefits;

3.                                       The claimant has the right to
review and obtain copies of all relevant documents relating to the denial of
his or her claim and to submit any issues and comments, in writing, to the Plan
Administrator;

4.                                       If the claimant’s claim is denied,
the Plan Administrator must provide the claimant with written notice of this
denial within sixty (60) days after the Plan Administrator’s receipt of the
claimant’s written claim for review. 
There may be times when this 60-day period may be extended.  This extension may only be made, however,
where there are special circumstances which are communicated to the claimant in
writing within the 60-day period.  If
there is an extension, a decision will be made as soon as possible, but not
later than one hundred and twenty (120) days after receipt by the Plan
Administrator of the claimant’s claim for review; and

 6
 

5.                                       The Plan Administrator’s decision
regarding the claimant’s claim for review will be communicated to the claimant
in writing, and if the claimant’s claim for review is denied in whole or part,
the decision will include:

(A)                              the specific
reason or reasons for the denial;

(B)                                specific
references to the pertinent provisions of the Plan on which the decision was
based;

(C)                                a statement
that the claimant may receive, upon request and free of charge, reasonable
access to and copies of, all documents, records and other information relevant
to the claimant’s claim for benefits; and

(D)                               a statement
of the claimant’s right to bring a civil action under Section 502(a) of ERISA.

7.                                      Plan
Administration

(a)                                  Discretion

The Company’s Compensation Committee is responsible for the
general administration and management of the Plan (“Plan
Administrator”) and shall have all powers and duties necessary to
fulfill its responsibilities, including, but not limited to, the discretion to
interpret and apply the provisions of the Plan and to determine all questions
relating to eligibility for Plan benefits. 
The Plan Administrator shall have the discretion to interpret or
construe ambiguous, unclear, or implied (but omitted) terms in any fashion it
deems to be appropriate in its sole and absolute discretion, and to make any
findings of fact needed in the administration of the Plan.  The validity of any such interpretation,
construction, decision, or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld
unless clearly arbitrary or capricious.

(b)                                  Finality of
Determinations

Unless arbitrary
and capricious, all actions taken and all determinations by the Plan
Administrator will be final and binding on all persons claiming any interest in
or under the Plan.  To the extent the
Plan Administrator has been granted discretionary authority under the Plan, the
Plan Administrator’s prior exercise of such authority shall not obligate it to
exercise its authority in a like fashion thereafter.

(c)                                  Drafting
Errors

If, due to errors
in drafting, any Plan provision does not accurately reflect its intended
meaning, as demonstrated by consistent interpretations or other evidence of
intent (by the Sponsor or the Plan Administrator, as the case may be), or as
determined by the Plan Administrator in its sole and absolute discretion, the
provision shall be considered ambiguous and shall be interpreted by the Plan
Administrator and all Plan fiduciaries in a fashion consistent with its intent,
as determined in the sole and absolute discretion of the Plan Administrator
(but with regard to the intent of the Sponsor as settlor).

 7
 

(d)                                  Scope

This Section may
not be invoked by any person to require the Plan to be interpreted in a manner
inconsistent with its interpretation by the Plan Administrator or other Plan
fiduciaries.

8.                                      Arbitration
of Disputes

Any controversy or claim arising out of or relating to
this Plan shall be resolved by final and binding arbitration in accordance with
the employment dispute rules of the American Arbitration Association then in
effect, and judgment upon any award rendered by the arbitrators may be entered
and a confirmation order sought in any court having jurisdiction.  You and the Company shall each bear your/its
own expenses incident to any such arbitration, including without limitation,
expenses of counsel, and the Company shall pay the expenses of the arbitrators
and the American Arbitration Association. 
This paragraph shall not apply to any injunctive or other equitable
remedies that the Company may have under any general release agreement executed
by you to receive a Change in Control Severance Benefit.

9.                                      Plan
Amendment and Termination; Limitation on Employee Rights

(a)                               The Company,
acting through its Board of Directors or its delegate, has the right in its
sole and absolute discretion to amend the Plan, to extend its term, or to
terminate the Plan, prospectively.

(b)                               Notwithstanding
the foregoing, any amendment or termination of the Plan that occurs within two
months before or two years after a Change in Control shall only apply to those
Participants:

(i)                           who consent
individually and in writing to the amendment or termination; or

(ii)                        whose vested
Change in Control Benefit, or rights under the Plan to become entitled to the
Change in Control Benefit set forth in his or her Letter Agreement are not
adversely affected by such amendment or termination.

(c)                                This Plan
shall not give any employee the right to be retained in the service of the
Company, and shall not interfere with or restrict the right of the Company to
discharge or retire the employee for any lawful reason.

10.                               Governing
Law

This Plan is a welfare plan subject to ERISA, and it
shall be interpreted, administered, and enforced in accordance with that law.
To the extent that state law is applicable, the statutes and common laws of the
State of New York (excluding its choice of laws principles) shall apply.

11.                               Miscellaneous

Where the context so indicates, the singular will
include the plural and vice versa. 
Titles are provided herein for convenience only and are not to serve as
a basis for interpretation or 

 8
 

construction of the Plan.  Unless the context clearly indicates to the
contrary, a reference to a statute or document shall be construed as referring
to any subsequently enacted, adopted, or executed counterpart.

12.                               Other Information

(a)                                  Type of Plan

This is a welfare
plan.

(b)                                  Addresses,
etc.

The Company’s address, telephone number, and employer
identification number are as follows:

The Smith & Wollensky Restaurant
Group, Inc.

880 Third Avenue

New York, New York 10022

  Attention:
Chair, Compensation Committee of the Board of Directors

Telephone: 212 838-2061

EIN:
58-2350980

The Plan’s identification number and Plan Year are as follows:

Plan I.D. Number:  5      

Plan Year:              Calendar

(c)                                  Agent for
Service of Legal Process

The Plan
Administrator is the Plan’s agent for service of legal process.

(d)                                  Funding

The Plan is funded out of the Company’s general assets, subject to
the Company’s obligation under Section 11 to establish and fund a grantor trust
in the event of a Change in Control.

(e)                                  Plan
Amendment or Termination

The Sponsor has reserved the right to amend and terminate the Plan
as set forth in Section 10 herein.

(f)                                    Statement of
ERISA Rights

As a participant
in this Plan, you are entitled to certain rights and protections under a
federal law called the Employee Retirement Income Security Act of 1974, as
amended (as noted above, “ERISA”).  ERISA
provides that you are entitled to examine all Plan documents, including the
official Plan document and the Plan’s annual report, at the Plan Administrator’s
office and other specified locations without charge.  Copies of these documents and other Plan
information also may 

 9
 

be obtained on
written request to the Plan Administrator. 
A reasonable charge may be requested for copies.

In addition to
creating rights for Plan participants, ERISA imposes duties on the people who
are responsible for the operation of this Plan. 
The people who operate this Plan are called “fiduciaries.”  Plan fiduciaries have a duty to operate this
Plan prudently and in the interest of you and other Plan participants.  No one, including your employer or any other
person, may fire you or otherwise discriminate against you in any way to
prevent you from obtaining benefits or exercising your rights under ERISA.  If your claim for benefits is denied in whole
or in part, you must receive a written explanation of the reason for this
denial.  You have the right to have the
Plan Administrator review and reconsider your claim, as described elsewhere in
this Plan.

Under ERISA, there
are steps you may be able to take to enforce your rights.  For instance, if you request certain
materials required to be furnished by the Plan and do not receive them within
30 days, or if you have any other claim with respect to the Plan, you must
utilize the Plan’s claims procedure.  You
also may file suit in federal court.  In
such a case, the court may require you to pursue your claim through the Plan’s
claims procedure or it may grant you the relief you are seeking, for example,
by ordering that you be provided with materials you have requested and that you
be paid up to $110 a day until you receive them, unless the materials were not
sent because of reasons beyond the Plan Administrator’s control.

If you are
discriminated against for asserting your rights, you should file a claim under
the Plan’s claims procedure, or you may seek assistance from the U.S.
Department of Labor or file suit in a federal court.  The court will decide whether you should have
pursued your claim through the Plan’s claims procedure and who should pay the
court costs and legal fees.  If you are
successful, the court may order the person you have sued to pay these costs and
fees.  If you lose any court case
involving the Plan, the court may order you to pay these costs and fees.  It may do so, for example, if it finds that
you should have used the Plan’s claims procedure or that your claim is
frivolous.  If you have any questions
about this statement or about your rights under ERISA, you should contact the
nearest area office of the Employee Benefits Security Administration, U.S.
Department of Labor, listed in your telephone directory or the Division of
Technical Assistance and Inquires, Employee Benefits Security Administration,
U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.
 You may also obtain certain publications
about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration or by visiting its website
(http://www.dol.gov/ebsa/).

(g)                                 Whom to Call
for Additional Information

If you have any
questions, please contact the Plan Administrator.

 10

THE SMITH & WOLLENSKY
RESTAURANT GROUP,  INC.

CHANGE IN CONTROL PROTECTION PLAN

Participation Agreement

 

The Smith & Wollensky Restaurant Group,  Inc.

Letterhead

Employee Name

Employee Address

Re:                               The
Smith & Wollensky Restaurant Group, 
Inc. Change in Control Protection Plan Participation Letter Agreement

Dear [Employee Name]:

This letter relates to the Change in Control
Protection Plan (the “Plan”)
that we, The Smith & Wollensky Restaurant Group,  Inc., have adopted.

Through this letter, you are being offered the
opportunity to become a participant in the Plan, and thereby to be eligible to
receive the retention and severance benefits described below. A copy of the
Plan is attached to this letter.  You
should read it carefully and become comfortable with its terms and conditions,
and those set forth below.

By signing below, you will be acknowledging and
agreeing to the following provisions:

(a)                                  that
you have received and reviewed a copy of the Plan;

(b)                                 that
terms not defined in this letter but beginning with initial capital letters
shall have the meaning assigned to them in the Plan;

(c)                                  that
participation in the Plan requires that you agree irrevocably and voluntarily
to the terms of the Plan and the terms set forth below; and

(d)                                 that
you have had the opportunity to carefully evaluate this opportunity, and desire
to participate in the Plan according to the terms and conditions set forth
herein.

Subject to the foregoing, we invite you to become a “Participant”
in the Plan.  Your participation in the
Plan will be effective upon your signing and returning this Agreement to the
Company within thirty (30) days of your receipt of this Agreement.

NOW, THEREFORE, you and the Company (hereinafter
referred to as “the parties”) hereby AGREE as follows:

1.             If while the Plan
and this letter agreement is in effect:

a)              a Change in Control,
as defined under Section 2(c) of the Plan occurs and you remain employed until
[INSERT DATE] (your Retention Date) or you 

 1
 

incur a Covered Termination (as defined under Section
3(c) of the Plan), you will receive a Change in Control Retention Benefit equal
to                       ;

b)             you incur a Covered
Termination within two years after a Change in Control,  you will receive a Change in Control
Severance Benefit equal to                      

2.             As a condition of receiving the
Change in Control Severance Benefit (but not the Change in Control Retention
Benefit), you must sign a general release in a standard form that is in general
use by the Company at the time of your Covered Termination.  The general release shall include a
non-disparagement clause requiring you to refrain from disparaging the Company,
its officers, directors or your fellow employees as well as a confidentiality
clause that prohibits you from disclosing the Company’s confidential
information without its consent.  The
Company will provide you with the general release at the time of the Covered
Termination.

3.             You will cease to be eligible for
Change in Control Severance Benefits under the Plan if you are offered employment
with any entity or person that acquires the Company (including Alan Stillman or
any entity he directly or indirectly controls) at a salary that is not 5% less
than your salary prior to the Change in Control and that does not require you
to move from your current work location.  
The Plan Administrator, in its sole discretion, may require you to
return any benefits paid to you before your eligibility terminates under this
paragraph.

4.             In consideration of becoming
eligible to receive the Change in Control Severance Benefits provided under the
terms and conditions of the Plan, you agree to waive any and all rights,
benefits, and privileges to severance benefits that you might otherwise be
entitled to receive under any other plan or arrangement.   Notwithstanding the foregoing, if you become
eligible to receive benefits under the Company’s 2005 Management Retention
Plan, you shall receive benefits under that plan and not this Plan.

5.             You understand that the waiver set
forth in Section 4 above is irrevocable for so long as this letter agreement is
in effect, and that this letter agreement and the Plan set forth the entire
agreement between the parties with respect to any subject matter covered
herein.

6.             This letter agreement shall
terminate, and your status as a “Participant” in the Plan shall end, on the
first to occur of –

a)              your termination of
employment for a reason other than a “Covered Termination” as defined in
Section 3(c)(i) of the Plan,

b)             the date two years
after a Change in Control, and

c)              if before a Change
in Control occurs, the date 12 months after the Company provides you with
written notice that this letter agreement is being terminated by the Company in
its discretion as employer and Company.

7.             You recognize and agree that your
execution of this letter agreement results in your enrollment and participation
in the Plan, that you agree to be bound by the terms and conditions of 

 2
 

the Plan and this letter
agreement, and that you understand that this letter agreement may not be
amended or modified except pursuant to Section 9 of the Plan.

	
  

  	
  The “Company”:

  
	
  Dated:                       ,
  2007

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Alan N.
  Stillman, CEO

  

 

ACCEPTED AND AGREED TO
this               
day of                         ,
20     .

	
   

  	
   

  
	
  Your Name (printed)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Your Signature

  	
   

  

 

 3AGREEMENT

     THIS  AGREEMENT  is made as of this 17th day of April,  2007,  among  BASIL
CALOYERAS, an individual,  ALIKI CALOYERAS, an individual,  ALEXANDRA CALOYERAS,
an individual,  CALOYERAS FAMILY PARTNERSHIP, a Nevada limited liability company
("Caloyeras  Family  Partnership")  and TOROTEL,  INC.,  a Missouri  corporation
("Torotel").  Basil  Caloyeras,  Aliki  Caloyeras  and  Alexandra  Caloyeras are
sometimes hereinafter referred to as the "Caloyeras Shareholders."

     WHEREAS,  the Caloyeras  Shareholders and the Caloyeras Family  Partnership
are the owners of 2,537,505 shares of the common stock of Torotel; and

     WHEREAS,  the Caloyeras  Shareholders and the Caloyeras Family  Partnership
desire to grant to Torotel an option for  Torotel to  purchase  shares of common
stock of Torotel owned by the Caloyeras  Shareholders  and the Caloyeras  Family
Partnership, as set forth herein; and

     WHEREAS, Basil Caloyeras is willing to dismiss without prejudice the action
captioned  BASIL  CALOYERAS V. TOROTEL,  INC.,  No.  06-2485-KHV  (United States
District  Court,  District of Kansas)  (the  "Pending  Action"),  obtain  mutual
releases  of all claims in the event the shares are  purchased  pursuant to this
option,  and covenant not to sue prior to July 31, 2007,  in  consideration  for
Torotel  agreeing to certain  terms and  conditions  as  specifically  set forth
herein.

     NOW,  THEREFORE,  in consideration of the premises,  and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto do hereby agree as follows:

     1.   OPTION TO  PURCHASE.  The  Caloyeras  Shareholders  and the  Caloyeras
Family  Partnership do hereby grant,  until July 31, 2007, to Torotel the option
for Torotel to purchase all, but not less than all, of the  2,537,505  shares of
common stock of Torotel  owned by such  parties,  for a cash  purchase  price of
Seventy Cents ($.70) per share, subject to the provisions of this Agreement.

     2.   TOROTEL'S FORBEARANCE.  Subject  to  Section 5  hereof  or  unless the
Caloyeras  Family  Partnership  consents in advance in writing,  Torotel  agrees
that,  effective  immediately,  neither  it,  nor any  subsidiary  or  affiliate
controlled by it will, prior to July 31, 2007: (i) issue any shares,  restricted
or otherwise,  of capital  stock of Torotel;  (ii) grant any options to purchase
any  shares of  capital  stock of  Torotel;  (iii)  enter in any new  employment
agreements  to which  Torotel will be a party;  (iv) modify,  amend or alter any
employment  agreements to which Torotel is a party as of the date hereof; or (v)
effect a merger, recapitalization, reorganization or other corporate transaction
which would have the effect of diluting the percentage interest of the Caloyeras
Family Partnership and the Caloyeras Shareholders in Torotel.

                                       1
<PAGE>
     3.   FUNDS.  Torotel  agrees  to use its commercially reasonable efforts to
pursue  financing  sources in order for it to acquire the funds with  acceptable
terms to allow it to purchase  the shares of Torotel  common  stock owned by the
Caloyeras Family Partnership and the Caloyeras Shareholders for a purchase price
of Seventy Cents ($.70) per share on or before  July  31, 2007.

     4.   NO REVIVAL OR EXTINGUISHMENT OF CLAIMS; NO RESTRICTION. Except as set
forth herein,  this  Agreement  does not affect any claims or defenses of either
party which existed and were  enforceable  prior to the date of this  Agreement.
This  Agreement  does not affect the right or  ability of the  Caloyeras  Family
Partnership, the Caloyeras Shareholders, or any other holder of shares of common
stock  of  Torotel,  to  duly  exercise  any  of  their  rights,  privileges  or
responsibilities  as such holder of shares of common stock,  including,  but not
limited  to,  presenting  proposals  or  resolutions  for  consideration  by the
shareholders  of  Torotel  at its annual  meeting  of  shareholders,  nominating
individuals to serve as members of the Torotel Board of Directors, or taking any
other action permitted and in compliance with applicable law or regulation.

     5.   OTHER STATUTORY OR REGULATORY OBLIGATIONS.  This Agreement is subject,
in all respects, to the duties,  responsibilities and obligations of Torotel and
its Board of Directors pursuant to applicable law and regulation. Should Torotel
or its Board of Directors  determine,  prior to July 31, 2007, that any such law
or regulation prohibits Torotel from observing the provisions of this Agreement,
then  Torotel  shall  promptly  give  notice  of  such  fact  to  the  Caloyeras
Shareholders.  In such event,  this Agreement and the duties and  obligations of
the parties hereunder shall terminate and be of no further force or effect.

     6.   RESERVATION  OF RIGHTS AND  DEFENSES.  The  parties to this  Agreement
hereby  explicitly  retain and reserve each and every right or defense which may
be  available  with  respect  to any  claims  any  party may have as of the date
hereof.  The  parties  agree  that oral and  written  communications  during the
pendency of the Agreement shall not waive the rights and defenses of any party.

     7.   INADMISSIBILITY OF AGREEMENT FOR OTHER PURPOSES.  This Agreement shall
only be  admissible in any  proceeding  involving the parties to prove the terms
hereof,  and  shall be  inadmissible  for all  other  purposes  and in any other
proceeding.

     8.   ENTIRE AGREEMENT;  NO  ORAL MODIFICATION. This document represents the
entire  agreement  of the parties  with  respect to the  subject  matter of this
Agreement and may not be modified except in writing signed by all parties.

     9.   AUTHORITY.  The  undersigned represent that they have the authority to
execute  this  Agreement on behalf of the  respective  parties and to bind their
respective parties to the terms of this Agreement by their execution hereof.

     10.  COUNTERPARTS.   This  Agreement  may  be  executed  in  one  or  more
counterparts constituting one and the same agreement.

     11.  EFFECTIVE  DATE;  ADDITIONAL  PARTIES.  This  Agreement  shall  become
effective and binding as of the day and year first above written.

                                       2
<PAGE>

     12.  GOVERNING LAW AND FORUM. This  Agreement shall be governed by the laws
of the State of Missouri.

     13.  PENDING ACTION.  Promptly  after  the  execution of this Agreement and

pursuant to Rule  41(a)(1)(ii)  of the Federal Rules of Civil  Procedure,  Basil
Caloyeras  shall and Torotel  shall cause all of the  defendants  in the Pending
Action to jointly file a dismissal without prejudice of the Pending Action.  The
Caloyeras  Shareholders  and Caloyeras  Family  Partnership  covenant not to sue
Torotel and/or its Board members or officers,  and Torotel and its Board members
and  officers  covenant  not to sue  any of the  Caloyeras  Shareholders  or the
Caloyeras Family Partnership prior to July 31, 2007, or the earlier  termination
of  this  Agreement.   The  Caloyeras  Shareholders  and  the  Caloyeras  Family
Partnership,  Torotel and  Torotel's  Board  members and officers  will agree to
release  any and all  claims  against  each  other in the event the  shares  are
purchased pursuant to this option.

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be
executed  in  multiple  counterpart  copies,  each of which  shall be  deemed an
original but constitute one and the same instrument as of the day and year first
above written.

                          CALOYERAS SHAREHOLDERS:

                                        /s/ Basil Caloyeras
                                 -----------------------------------------------
                                 Basil Caloyeras

                                        /s/ Aliki Caloyeras
                                 -----------------------------------------------
                                 Aliki Caloyeras

                                        /s/ Alexandra Caloyeras
                                 -----------------------------------------------
                                 Alexandra Caloyeras

                          CALOYERAS FAMILY PARTNERSHIP:

                                 By:    /s/ Basil Caloyeras
                                    --------------------------------------------
                                    Basil Caloyeras, Member

                          TOROTEL, INC.:

                                 By:    /s/ Dale H. Sizemore, Jr.
                                    --------------------------------------------
                                 Name:  Dale H. Sizemore, Jr.
                                      ------------------------------------------
                                 Title: President and CEO
                                      ------------------------------------------

                                       3

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