Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 42

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 42
---
 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”.

| - 24 - |

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; |

| · | the                                       
 level of liquidity of the Exchange Notes; |

| · | our                    
 financial performance; |

| · | the                                         
 amount of indebtedness we have outstanding; |

| · | the                                                                     
 level, direction and volatility of market interest rates generally; and |

| · | the