Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 113

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 113
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 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 amount of obligations secured thereby shall not exceed the original principal amount
of obligations so secured at the time of such extension, renewal or refinancing; “restricted subsidiary” as any subsidiary
that is a licensed insurance company, other than any licensed insurance company that the Company’s board of directors, in good faith,
determines is not, individually or together with any other licensed insurance company as to which a similar determination has been made,
material to the Company and its subsidiaries, considered as a whole; and “subsidiary” as a corporation or business trust,
a majority of the outstanding voting stock of which is owned, directly or indirectly,