Yanfeng Hourly Nonexempt Handbook

TERMINATION OF EMPLOYMENT

The Company requests that employees give two (2) weeks written notice of your intent to resign. If you are absent from work for three consecutive days without being excused or giving proper notice, we will assume you have voluntarily resigned from employment. All Company property must be returned prior to the employee receiving their final paycheck including:

• YANFENG identification cards • Keys • Credit Cards • Tools • Computer Equipment

If you owe YANFENG any money or are responsible for any lost or damaged property, those accounts are to be settled as originally agreed or by deduction from final pay, unless prohibited by law.

Eligible benefits, as defined by our continuation coverage plan, will be sent to each employee by the healthcare provider.

Employees who terminate from the Company (voluntary or involuntary) will receive a payout of any accrued, but unused vacation. Vacation taken advance of accrual will be deducted from the final paycheck. BENEFIT CONTINUATION The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under YANFENG ’s health plan when a "qualifying event" would normally re sult in the loss of eligibility. Under COBRA, the employee or beneficiary pays the full cost of coverage at group rates plus an administration fee. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee's hours or a leave of absence; an employee's divorce or legal separation; and a dependent child no longer meeting eligibility requirements. YANFENG provides each eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for coverage under the health insurance plan. The notice contains important information about the employee's rights and obligations.

69 | P a g e