Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 29

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 29
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 of $1.5 billion (including a sublimit of $1.0 billion in aggregate for Crum & Forster, Odyssey Group, Northbridge, Zenith
National, Allied World and Brit (and each of their respective direct and indirect subsidiaries) (the “Core Group”))
unless the applicable subsidiary provides an unsecured guarantee, which overall limit reduces to $1.0 billion in aggregate upon any sale
of more than 51% of the equity interests of any member of the Core Group. In addition, the Credit Facility contains certain financial
covenants that require the Company to maintain a ratio of consolidated debt to consolidated capitalization not exceeding 0.35:1 and consolidated
shareholders’ equity of not less than $11.5 billion, both calculated as defined in the Credit Facility (including, in certain circumstances
and subject to certain limits and conditions, calculating consolidated debt on the basis of net consolidated debt, taking into account
up to $1.0 billion in consolidated cash and cash equivalents that are held in an account in Canada or the United States with a lender
under the Credit Facility (or its affiliate)). A failure to comply with the obligations and covenants under the Credit Facility could
result in an event of default under such agreement which, if not cured or waived, could permit acceleration of indebtedness, including
other indebtedness of the Company or our subsidiaries. If such indebtedness were to be accelerated, there can be no assurance that the
Company’s assets would be sufficient to repay that indebtedness in full. Moreover, the Credit Facility could limit our ability to
incur additional indebtedness in the future.

Our business could be adversely affected by the loss of one or more key employees.

We are substantially dependent
on a small number of key employees, including our Chairman and significant shareholder, Mr. Prem Watsa, and the senior management
of the Company and its operating subsidiaries. The industry experience and reputation of these individuals are important factors in our
ability to attract new business and investment opportunities. Our success has been, and will continue to be, dependent on our ability
to retain the services of our existing key employees and to attract and retain additional qualified personnel in the future. The loss
of the services of any of these key employees, or the inability to identify, hire and retain other highly qualified personnel in the future,
could adversely affect the quality and profitability of our business operations. At our operating subsidiaries, employment agreements
have been entered into with key employees. We do