It might have worked once but it never has whenever I tried recently, on the 4.4-releases.
This issue has also been addressed in this thread: Internet Sharing Not Sharing Internet
It’s exactly the same for the X10ii as for the X10iii (limited connection for devices connected but working connection on the phone).
I wouldn’t totally deny the possibility that the hotspot might sometimes work by chance, but it doesn’t work for me and many others.