{"url_path":"/sec/fecof/10-k/2026/item-10","section_key":"item-10","section_title":"Item 10 ADDITIONAL INFORMATION.**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/849997/0001477932-26-003204-index.html","accession_number":"0001477932-26-003204","cik":"0000849997","ticker":"FECOF","issuer_name":"FEC Resources Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/849997/0001477932-26-003204-index.html","primary_entity_key":"0000849997","primary_entity_name":"FEC Resources Inc."},"word_count":871,"has_tables":true,"body_markdown":"**ITEM 10.  ADDITIONAL INFORMATION.**\n\n \n\n**A.  Share Capital**\n\n \n\nNot applicable\n\n \n\n \n\n36\n\n*Table of Contents*\n\n \n\n**B.  Memorandum and Articles of Association**\n\n \n\nReference is hereby made to our Certificate of Continuance, and to our Bylaws, each of which is incorporated herein by reference to, respectively, Exhibit 3.1 and 3.2 to our Registration Statement on Form F-1, file number 33-81290.\n\n \n\n**C.  Material Contracts.**\n\n \n\n**See \"Item 4. Information on the Company.\"**\n\n \n\n**D.  Exchange Controls**\n\n \n\n**Investment Canada Act**\n\n \n\nThe *Investment Canada Act* (the “ICA”) prohibits the acquisition of control of a Canadian business enterprise in Canada by non-Canadians without the prior consent of Investment Canada, the agency that administers the ICA, unless such acquisition is exempt under the provisions of the ICA.  Investment Canada must be notified of such exempt acquisitions.  The ICA covers acquisitions of control of corporate enterprises, whether by purchase of assets, shares or “voting interests” of an entity that controls, directly or indirectly, another entity carrying on a Canadian business.\n\n \n\nApart from the ICA, there are no other limitations on the right of non-resident or foreign owners to hold or vote securities imposed by Canadian law or our Certificate of Continuance.  There are no other decrees or regulations in Canada which restrict the export or import of capital, including foreign exchange controls, or that affect the remittance of dividends, interest or other payments to non-resident holders of our securities except as discussed in “Taxation”, below.\n\n \n\n**E.  Taxation**\n\n \n\nThe following is a summary of the principal Canadian federal income tax considerations generally applicable in respect of our common stock.  The tax consequences to any particular holder of common stock will vary according to the status of that holder as an individual, trust, corporation or member of a partnership, the jurisdiction in which that holder is subject to taxation, the place where that holder is resident and, generally, according to that holder's particular circumstances.  This summary is applicable only to holders who are resident in the United States; have never been resident in Canada; deal at arm's length with us; hold their common stock as capital property; and who will not use or hold the common stock in carrying on a business in Canada.\n\n \n\nThis summary does not take into account provincial income tax consequences.  This summary assumes that the publicly announced proposals will be enacted as proposed with the effective dates set out therein; otherwise, this summary assumes that there will be no other changes in law whether by judicial or legislative action.\n\n \n\nIf a non-resident were to dispose of common stock to another Canadian corporation which deals (or is deemed to deal) on a non-arm's length basis with the non-resident, and which, immediately after the disposition, is connected with us (i.e., which holds shares representing more than 10% of the voting power and more than 10% of the market value of all of our issued and outstanding shares), the excess of the proceeds over the paid-up capital of the common stock sold will be deemed to be taxable as a dividend either immediately, or eventually, by means of a deduction in computing the paid-up capital of the purchasing corporation.\n\n \n\n \n\n37\n\n*Table of Contents*\n\n \n\nUnder the *Canadian Tax Act*, a gain from the sale of common stock by a non-resident will not be subject to Canadian tax, provided the stockholder (and/or persons who do not deal at arm's length with the stockholder) has not held a “substantial interest” in our shares (25% or more of the shares of any class of our equity securities) at any time in the five (5) years preceding the disposition.  Generally, the Canadian-United States Tax Convention (the “Tax Convention”) will exempt from Canadian taxation any capital gain realized by a resident of the United States, provided that the value of the common stock is not derived principally from real property situated in Canada.\n\n \n\nIn the case of any dividends paid to non-residents of Canada, the Canadian tax is withheld by us, which remits only the net amount to the stockholder. By virtue of Article X of the Tax Convention, the rate of tax on dividends paid to residents of the United States is generally limited to 15% of the gross dividend (or 10% in the case of certain corporate stockholders owning at least 10% of our voting shares).  In the absence of the treaty provisions, the rate of Canadian withholding tax imposed on non-residents is 25% of the gross dividend.  Stock dividends received by non-residents of Canada from us are taxable by Canada as ordinary dividends.\n\n \n\nThis summary is of a general nature only and is not exhaustive of all possible income tax consequences.  It is not intended as legal or tax advice to any particular holder of common stock, and should not be so construed.  Each holder should consult his/her own tax advisor with respect to the income tax consequences applicable to him/her in his/her own particular circumstances.\n\n \n\n**F.  Dividends and Paying Agents**\n\n \n\nNot applicable\n\n \n\n**G.  Summary By Experts**\n\n \n\nNot applicable\n\n \n\n**H.  Documents on Display**\n\n \n\nThe documents concerning us which are referred to in this Annual Report are either annexed hereto as exhibits (see Item 19) or may be inspected at our principal executive offices in Vancouver, British Columbia.\n\n \n\n**I.  Subsidiary Information**\n\n \n\nNot applicable\n\n \n\n \n\n38\n\n*Table of Contents*"}