Notification of Adjusting Allowance Standard of Business Trip to Other Countries than Permanent Working Country (Huawei Corporate file [2005] No. 125) Has been approved and issued on May 20, 2005 and taken effect on June 1, 2005 Abstract Abstract  For a short time business trip to another country of employees employed by China and resident in China, the business trip allowance during the business trip is consistent with that of the destination country. The employee does not enjoy the meal allowance, transportation allowance, and secondment allowance of China any more.  For a short time business trip to countries other than the resident country of an employee employed by China but resident in a country other than China, the business trip allowance is consistent with that of the destination country. The employee does not enjoy the secondment allowance of his/her resident country any more. Foreword Page 1 The English version is only for reference, in case of any conflict between the two versions, the Chinese version shall prevail.

Application of allowances for employees employed by China and resident in China Allowance typeApplication mode Secondment allowance Applied by each department collectively Allowance for overseas business trip 1. Applied together with the traveling expenses for employees of Shen Zhen headquarters 、 domestic local employees 、 employees assigned to domestic offices of Global Technical Service Department 2. For those assigned to branch offices of Domestic Marketing & Sales Management Committee, applied collectively together with secondment allowance. Allowance for business trip in China 1. Applied together with the traveling expenses for employees of Shen Zhen headquarters 、 domestic local employees 、 employees assigned to domestic offices of Global Technical Service Department 2. For those assigned to branch offices of Domestic Marketing & Sales Management Committee, applied collectively together with secondment allowance. Food and transportation allowance in China Deducted directly from the food and transportation allowance (For details, refer to Slide 6 and 7) Page 2

Application of allowances for employees employed by China but resident in a country other than China Allowance typeApplication mode Secondment allowance Applied collectively and claimed in China with taxes deducted in line with corporate regulations Allowance for cross-country (including China) business trip or in the permanent working country Applied together with secondment allowance and claimed in China with no taxes deducted Page 3

Frequently Asked Questions (I) Are the definitions of travel and secondment changed? No. Answer: No. The definitions of travel and secondment specified in Huawei Corporate file [2003] No. 229 are still applicable.  An employee who is expected to assign to a same place on business trip for over three months shall enjoy the secondment allowance of the destination place since the day of arrival.  An employee who is expected to assign to a same place on business trip less than three months but virtually stays over three months shall enjoy the secondment allowance of the destination place since the fourth month. Are travel allowances subjected to tax deduction? arenot subjected to tax deduction Answer: Travel allowances for the cross-country business trip or in the permanent working country are not subjected to tax deduction. Are secondment allowances subjected to tax deduction? are subjected to tax deduction Answer: Secondment allowances are subjected to tax deduction in line with corporate regulations. What does it mean to take effect on June 1, 2005? the allowances incurred Answer: It means that the allowances incurred since June 1, 2005 shall comply with the new regulations. Page 4

What standard is applicable to travel allowances on the day traveling in- transit? Answer: Follow the one with higher standard. That is, if an employee crosses between the permanent working country and the destination country at the same day, the allowance standard is the one with higher standard. Does an employee employed by China but resident in a country other than China enjoy the travel allowances for business trip to China? What is the standard? Answer: The allowances for business trip to China (not including Hong Kong and Macao) shall follow the localization standard of China, that is, 10 USD/day. Does an employee resident in a country other than China enjoy travel allowances of 10 USD/day when he/she is on business trip to other cities within the permanent working country? Answer: No. In addition, he/she shall not enjoy the secondment allowances of his/her permanent working country. But he/she enjoys the travel allowances, which standard is consistent with the standard of secondment allowance of his/her permanent working country without tax deducted. Is the allowance standard for business trip to a place (including Hong Kong and Macao) other than China together with customers or under a travel package (e.g. visit or exhibition) still 10 USD/day? Answer: Yes, the standard is 10 USD/day. Frequently Asked Questions (II) Page 5

Frequently Asked Questions (III) If employee A begins a business travel to another country from June 1 to June 25, does his/her working place need to be changed? When shall the working place be changed ? Answer: 1. Yes, the working place should be changed regardless of the time length of the business travel. Within two workdays prior to the business travel, the employee shall fill in the Working Place Change Application Form and submit it to the manager of the department for approval. Then the attendance recorder shall change the working place into the destination place since the first day of the business travel (June 1). During the business travel, the employee only enjoys the allowance for business travel to anther country rather than the food allowance in his/her resident country. 2. If the employee comes back for business temporarily, he/she shall fill in the Working Place Change Application Form within two workdays and submit it to the manager of the department for approval. Then the attendance recorder shall change the working place into the city where he/she is in since June 26. Page 6 Tips: 1. If the employee fails to feed back the working place change to the department manager and the attendance recorder, any personal economic loss caused by the working place information error shall be born by the employee. 2. Attendance section shall check the business travel information of all employees regularly. If the period of claimed business trip dosen ’ t consist with the actual one, we reserve the rights to investigate and affix the responsibilities.

The English version is only for reference, in case of any conflict between the two versions, the Chinese version shall prevail. Frequently Asked Questions (IV) If employee B comes back to the Longgang district from another country from June 1 to June 14, how to calculate the allowance of this month? Answer: The employee shall not enjoy the food allowance from June 1 to June. The food allowance should be released from June 15 to June 30 (calendar days). If employee C is assigned to another country from June 18, he/she does not enjoy the food allowance from the same day in line with corporate regulations and his/her working place shall be changed into the destination country. If he/she comes back temporarily for business during September 1 to 20, shall his/her working place be changed into the city in China where he/she is in during this period? When shall the working place be changed? Answer: 1. The working place shall not be changed. A employee resident in another country shall not have his/her working place changed if he/she returns China for business temporarily. Therefore, he/she does not enjoy the food allowance but enjoy allowance for returning China on business. 2. When the employee comes back to China, the employee shall fill in the Working Place Change Application Form and submit it to the manager of the department for approval. his/her working place shall be changed into the city in China where he/she is in from the first day he/she comes back. Page 7