Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 112

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 112
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 any restricted
subsidiary, to secure any obligation (other than the securities issued under the Indenture) of the Company, Allied World, any subsidiary
or any other person, without in any such case making effective provision whereby all of the outstanding securities issued under the Indenture
shall be directly secured equally and ratably with such obligation; provided, however, that this restriction will not apply to
(i) liens on the capital stock of any restricted subsidiary securing obligations outstanding from time to time under any bank credit
facility, provided that the principal amount of all such obligations secured by liens on the capital stock of any restricted subsidiary,
at the time of each incurrence of any portion of any such obligation, does not exceed 15% of the sum of (A) the Company’s
consolidated shareholders’ equity at the end of the Company’s most recently completed fiscal quarter immediately preceding
such incurrence for which financial statements are, or are required to be, available and (B) the aggregate principal amount of all
obligations which are outstanding under any bank credit facility immediately after giving effect to such incurrence and which are secured
by liens on the capital stock of a restricted subsidiary, and (ii) liens securing obligations from the Company to any wholly-owned
restricted subsidiary or from any wholly-owned restricted subsidiary to the Company or any other wholly-owned restricted subsidiary.
This provision will not restrict any other property of the Company or that of its subsidiaries (other than Allied World).

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The Indenture defines “lien”
as any mortgage, pledge, hypothecation, lien, encumbrance, charge or security interest of any kind; “obligation” as indebtedness
for money borrowed or indebtedness evidenced by a bond, note, debenture or other evidence of indebtedness; “purchase money lien”
as (i) any mortgage, pledge, hypothecation, lien, encumbrance, charge or security interest of any kind upon any capital stock of
any restricted subsidiary acquired after the date of the Indenture if such purchase money lien is for the purpose of financing, and does
not exceed, the cost to the Company, or any subsidiary of acquiring the capital stock of such restricted subsidiary and such financing
is effected concurrently with, or within six months after, the date of such acquisition, and (ii) any extension, renewal or refinancing
of any purchase money lien so long as the principal