Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 41

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 41
---
 The Indenture also provides that if we grant any security
interest to any collateral agent or trustee pursuant to such covenant in connection with any series created after the date of the Third
Supplemental Indenture, such security interest shall be automatically released on the Amendment Date and any such collateral agent or
trustee shall be authorized to take such further actions as we may reasonably request to give effect to such release.

As a result, once such restrictive
covenants have been automatically eliminated or amended, we will no longer be restricted under the terms and conditions of the Notes from
entering into transactions that could increase the total amount of our outstanding indebtedness, adversely affect our capital structure
or our credit ratings or associated outlooks, or otherwise adversely affect the holders of the Notes. See “Description of the Notes
— Certain Covenants”.

<div align='center'>- 24 -</div>

Holders of the Exchange Notes may not be protected in the event we are involved in a highly leveraged transaction, reorganization, restructuring, merger or similar transaction in the future.

The Indenture under which
the Initial Notes were issued may not sufficiently protect holders of the Exchange Notes if we are involved in a highly leveraged transaction,
reorganization, restructuring, merger or similar transaction. The Indenture does not contain:

| · | any provision restricting us or any of our subsidiaries from incurring, assuming or being liable with 
 respect to any indebtedness or other obligations;                                                     |

| · | any provision restricting us or our subsidiaries from incurring, assuming or being liable with respect 
 to any unsecured indebtedness or other unsecured obligations;                                          |

| · | any provision restricting us or any of our subsidiaries from paying dividends or making other distributions 
 on capital stock or from purchasing or redeeming capital stock;                                             |

| · | any restrictions on the ability of our subsidiaries to issue securities that would be senior to the common 
 shares of the subsidiaries held by us;                                                                     |

| · | any financial ratios or specified level of net worth to which we or our subsidiaries must adhere; or |

| · | any specific restrictions on our ability to contribute our assets to our insurance subsidiaries. |

The price at which you may be able to resell your Exchange Notes may be adversely affected by factors that are beyond our control.

If you are able to resell
your Exchange Notes, the price you receive will depend on many factors that may vary over time, including:

| · | the number of potential buyers; |

|