Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 119

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 119
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 delivered to the trustee for cancellation and
that have either become due and payable or are by their terms due and payable within one year by irrevocably depositing with the trustee
trust funds in an amount sufficient to pay at maturity the principal of and interest on the Notes.

The Company and/or Allied
World may, at their option, and at any time, elect to have its obligations discharged with respect to all outstanding Notes. This is
referred to as “defeasance”. Such defeasance means that the Company and/or Allied World shall be deemed to have paid and
discharged the entire indebtedness represented by the outstanding Notes and to have satisfied its other obligations with respect to the
Notes under the Indenture, except for (i) the rights of the holders of outstanding Notes to receive, solely from the trust fund
described below, payments in respect of the principal of (and premium, if any) and interest on such Notes when such payments are due,
(ii) the Company and/or Allied World’s obligations with respect to the Notes relating to the issuance of temporary Notes,
the registration, transfer and exchange of Notes, the replacement of mutilated, destroyed, lost or stolen Notes, the maintenance of an
office or agency for payment of the Notes, and the holding of money for security payments in trust and statements as to compliance with
the Indenture, (iii) the rights, powers, trusts, duties and immunities of the trustees under the Indenture and (iv) the defeasance
provisions of the Indenture. In addition, the Company and Allied World may, at their option and at any time, elect to be released from
its obligations with respect to certain of the covenants under the Indenture (including those described under “— Certain
Covenants — Limitation on Liens on Capital Stock of Restricted Subsidiaries”), referred to as “covenant defeasance”,
and any omission to comply with such obligations shall not constitute a default or an event of default with respect to the Notes.

<div align='center'>- 66 -</div>

In order to exercise either
defeasance or covenant defeasance with respect to the Notes, (i) the Company and/or Allied World must irrevocably deposit with the
trustee, in trust, for the benefit of the holders of the Notes, cash in U.S. dollars, certain U.S. government obligations, or a combination
thereof,