H1b out of status options

[preetippt1]

I am currently on H4 visa, it is valid till 2016. I got a job this year i.e 2013 and my employer has filed for my H1B.

My H1B is still under process it has gone to RFE but will likely get approved as it not complicated. Now my employer recently laid me off as they have no projects and they asked me to start looking for new job. They have not filed for the H1B withdrawal to USCIS and also said will help with my RFE but they will not pay me from October. Before getting a H1B visa I was on H4 visa in USA and it was valid till 2016. Now I have a few questions: 

1. Is it ok for my company to withdraw my H1B as soon as USCIS approves it? 

2. If my employer files for a withdrawal will my H4 visa still be valid? Can I still continue staying in US on H4 visa. 

3. Also will I be cap exempt the next time any employer applies for my H1B visa? 

Thanks in Advance!

[omshiv]

You can always do a COS back to H4.