Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 128

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 128
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 the Code. Under the Plan Assets Regulation, if a Plan invests in an “equity
interest” of an entity, then the Plan’s assets will include both the equity interest and an undivided interest in each of
the underlying assets of the entity, unless equity participation in the entity by Benefit Plan Investors (as defined below) is not “significant,”
as provided under the Plan Assets Regulation, or another exception under the Plan Assets Regulation applies. Under the Plan Assets Regulation,
the term “equity interest” means any interest in an entity other than an instrument that is treated as indebtedness under
applicable local law and which has no substantial equity features.

For purposes of the Plan
Assets Regulation, equity participation in an entity by Benefit Plan Investors will not be significant if such investors hold, in the
aggregate, less than 25% of the value of each class of equity in the entity, excluding equity interests held by persons (other than a
Benefit Plan Investor) with discretionary authority or control over the assets of the entity or who provide investment advice for a fee
(direct or indirect) with respect to such assets, and any affiliates thereof. For purposes of this 25% test, “Benefit Plan Investor”
is as defined in the Plan Assets Regulation and includes (i) any “employee benefit plan” (as defined in Section 3(3) of
ERISA) that is subject to Part 4 of Subtitle B of Title I of ERISA, (ii) any “plan” as defined in and subject to
Section 4975 of the Code and (iii) any entity whose underlying assets are deemed to include plan assets by reason of an employee
benefit plan’s or other plan’s investment in the entity or otherwise.

The Exchange Notes are not
intended to be treated as equity interests in the Company for purposes of the Plan Assets Regulation. Notwithstanding the foregoing,
in the event that the Exchange Notes are considered “equity interests” within the meaning of the Plan Asset Regulation, the
Company will endeavor to prohibit ownership of the Exchange Notes by Benefit Plan Investors or otherwise limit ownership of the Exchange
Notes by Benefit Plan Investors so that Benefit Plan Investors are deemed to own less than 25% of any class of equity in the Company,
unless another exception under the Plan Assets Regulation applies. If Benefit Plan Investors are deemed to own 25% or more of any class
of equity in the Company and another exception under the Plan Assets Regulation is not applicable, the Company