10 year Long residence ILR & Tier 2 General curtailment

[dreamcatcher]

Dear respected members,
I will be completing my 10 years in september 2014 and am on Tier 2 General right now with my contract coming to an end next month. Do you think I would still be OK if I apply 28 days before the completion of 10 year period and my Tier 2 leave is still not curtailed?

[dreamcatcher]

Any help would be much appreciated.
I am planning to apply for indefinite stay on the basis of long residence in August 2014. My immigration history is as follows.
Arrived in the UK : 10/09/2004 on student visa
Tier 1 PSW: granted on 30/04/2009
Tier 1 Gen: granted on 07/06/2010
Tier 2 Gen: granted on 26/06/2013 valid until 09/07/2016
Now my sponsor is terminating my employment contract and my last day at work will be 30/04/2014. I have my wife and 2 yr old child on tier 2 dependent visas. My question is that once my employment comes to an end, I will be 4 months and 10 days short of my 10 year qualifying period for long residence application. considering that when home office decide to curtail my leave, I'll be given 60 days, and I can apply 28 days in advance for my SET(LR).
1.Would I OK if I apply for long residence even though my employment would have come to an end at the time of application.
2. During the time when my application is in progress, would I be allowed to work?

Thanks.