Exhibit 10(f)

AMENDMENT NO. 3 TO LLC INTEREST PURCHASE AGREEMENT

THIS AMENDMENT NO. 3 TO LLC INTEREST PURCHASE AGREEMENT (this “Amendment”) is
made and entered into as of the 30th day of December, 2005, by and among ALFA
CORPORATION, a Delaware corporation (“Buyer”), ALFA MERGER SUB, LLC, a Tennessee
limited liability company (“Merger Sub”), JOHN CHARLES RUSSELL, an individual
resident of the State of Tennessee (“John Russell”), CAROL LYNN RUSSELL, an
individual resident of the State of Tennessee (“Carol Russell”), THE TRUSTS
IDENTIFIED ON THE SIGNATURE PAGES HERETO (the “Seller Trusts”), THE COMMUNITY
FOUNDATION OF MIDDLE TENNESSEE, INC., a Tennessee not-for-profit corporation
(the “Foundation”) (John Russell, Carol Russell, the Seller Trusts and the
Foundation are, collectively, “Sellers”), and THE VISION INSURANCE GROUP, LLC, a
Tennessee limited liability company (“Vision”).

W I T N E S S E T H:

WHEREAS, Buyer, Merger Sub, Sellers and Vision are parties to that certain LLC
Interest Purchase Agreement dated as of August 30, 2004, as amended by Amendment
No. 1 to LLC Interest Purchase Agreement, Converting to a Plan of Merger, dated
December 15, 2004 and Amendment No. 2 to LLC Interest Purchase Agreement, dated
December 29, 2004 (the “Agreement”); and

WHEREAS, the parties desire to further amend the Agreement, as hereinafter more
particularly set forth;

NOW, THEREFORE, for and in consideration of the premises, the mutual covenants
contained herein and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereby
covenant and agree as follows:

I. Definitions

All capitalized terms used in this Amendment which are not otherwise defined
herein are used with the same meaning attributed to such capitalized terms in
the Agreement.

II. Earnout Payments

The parties agree that Exhibit B and Exhibit C to the Agreement shall be
replaced in their entirety by Exhibit A and Exhibit B to this Amendment.

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III. Miscellaneous

1. This Amendment may be executed in two or more counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute
one and the same instrument.

2. Except as expressly set forth herein, the parties make no other amendment,
alteration or modification of the Agreement nor do they, nor does any of them,
by executing this Amendment, waive any provision of the Agreement or any right
that they or it may have thereunder.

[SIGNATURES BEGIN ON NEXT PAGE]

 

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written.

 

ALFA CORPORATION By:  

/s/ Jerry A. Newby

Name:   Jerry A. Newby Title:   President and Chief Executive Officer ALFA
MERGER SUB, LLC By:  

/s/ Jerry A. Newby

Name:   Jerry A. Newby Title:   Chief Manager JOHN CHARLES RUSSELL

/s/ John Charles Russell

CAROL LYNN RUSSELL

/s/ Carol Lynn Russell

JOHN CHARLES RUSSELL, TRUSTEE OF THE JOHN CHARLES RUSSELL 2004 ANNUITY TRUST NO.
1

/s/ John Charles Russell

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JOHN CHARLES RUSSELL, TRUSTEE OF THE JOHN CHARLES RUSSELL 2004 ANNUITY TRUST NO.
2

/s/ John Charles Russell

JOHN CHARLES RUSSELL, TRUSTEE OF THE JOHN CHARLES RUSSELL 2004 ANNUITY TRUST NO.
3

/s/ John Charles Russell

THE COMMUNITY FOUNDATION OF MIDDLE TENNESSEE, INC. By:  

/s/ Ellen E. Lehman

Name:   Ellen E. Lehman Title:   President THE VISION INSURANCE GROUP, LLC   /s/
John Charles Russell By:  

/s/ Carol Lynn Russell

 

John Charles Russell

President

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EXHIBIT A

(REPLACING EXHIBIT B TO AGREEMENT)

REVENUE EARNOUT PAYMENT FORMULA AND TERMS

Formula:

 

Year

  

Conservative

Revenue Target

   Aggressive
Revenue Target    Revenue Range

2005

   $ 84,719,125    $ 91,512,705    $ 6,793,580

2006

   $ 84,719,125    $ 91,512,705    $ 6,793,580

2007

   $ 101,174,541    $ 118,051,389    $ 16,876,848

2008

   $ 120,826,175    $ 152,286,292    $ 31,460,117

2009

   $ 144,294,841    $ 196,449,316    $ 52,154,475

 

Step 1:   Subtract the Conservative Revenue Target for the applicable period
from the actual Vision Revenue for the same period. If the result is negative,
Sellers shall not be entitled to any Revenue Earnout Payment for that period.
Step 2:   If the result in Step 1 is positive, then divide such result by the
Revenue Range for the applicable period. Then multiply that result by $700,000.
The result is the amount of the Revenue Earnout Payment due to Sellers for the
applicable period.

Certain Conditions:

The maximum Revenue Earnout Payment for any full calendar year is $700,000.

The formula will be applied to each calendar year period within the Earnout
Period on a stand alone basis, and no amounts will carried forward or back for
purposes of computing possible Revenue Earnout Payments.

Regardless of the amount determined by applying the formula above, no Revenue
Earnout Payment shall be paid to Sellers if Vision EBITDA is not at least equal
to the Conservative EBITDA Target for the period set forth on Exhibit B.

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Examples:

 

A. Assume that for calendar year 2008, me actual Vision Revenue were
$130,000,000. Applying Step 1, $130,000,000 less the Conservative Revenue Target
of $120,826,175 would result in $9,173,825. Because this is a positive number,
applying Step 2, that number would be divided by the Revenue Range of
$31,460,117, resulting in .2916. Multiplying .2916 by $700,000, Sellers would be
entitled to a Revenue Earnout Payment of $204,120.

 

B. Assume that, for calendar year 2008, the actual Vision Revenue were
$90,000,000. Applying Step 1, $90,000,000 less the Conservative Revenue Target
of $120,826,175 would result in ($30,826,175). Because this result is a negative
number, Sellers would not be entitled to any Revenue Earnout Payment.

 

C. Assume that for calendar year 2008, the actual Vision Revenue were
$160,000,000. Applying Step 1, $160,000,000 less the Conservative Revenue Target
of $120,826,175 would result in $39,173,825. Because this is a positive number,
applying Step 2, that number would be divided by the Revenue Range of
$31,460,117, resulting in 1,2452. Multiplying 1.2452 by $700,000 would result in
$871,640. However, because the maximum Revenue Earnout Payment per year is
$700,000, Sellers would be entitled to a Revenue Earnout Payment of $700,000.

 

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EXHIBIT B

(REPLACING EXHIBIT C TO AGREEMENT)

EBITDA EARNOUT PAYMENT FORMULA AND TERMS

Formula:

 

Year

   Conservative
EBITDA Target    Aggressive
EBITDA Target    EBITDA Range

2005

   $ 4,790,030    $ 8,966,628    $ 4,176,598

2006

   $ 4,790,030    $ 8,966,628    $ 4,176,598

2007

   $ 6,692,598    $ 13,226,250    $ 6,533,652

2008

   $ 8,908,838    $ 18,638,265    $ 9,729,427

2009

   $ 11,658,920    $ 25,788,564    $ 14,129,644

 

Step 1:   Subtract the Conservative EBITDA Target for the applicable period from
the actual Vision EBITDA for the same period. If the result is negative, Sellers
shall not be entitled to any EBITDA Earnout Payment for that period. Step 2:  
If the result in Step 1 is positive, then divide such result by the EBITDA Range
for the applicable period. Then multiply that result by $2,100,000. The result
is the amount of the EBITDA Earnout Payment due to Sellers for the applicable
period.

Adjustments to the Formula for 2005 and 2006 only:

The Conservative EBITDA target amount of $4,790,030 for 2005 includes $687,110
that is expected to be derived from the underwriting profit of AVIC and its
Affiliates on business written through Vision. If any of Vision’s business is
written during calendar year 2005 by insurance carriers other than AVIC and its
Affiliates (“Third Party Carriers”, the parties will adjust such $687,110
underwriting profit portion so that Sellers will have the opportunity to earn in
2006, rather than 2005, a pro rata portion relating to the business written by
Third Party Carriers. In such event, the following adjustments shall be made to
the formula described above:

 

Step 3:   For calendar year 2005 only, the maximum possible Earnout Payment of
$2,100,000 shall be adjusted as follows:

 

  (i) determine the total earned premium for all of Vision’s business written
during 2005 by Third Party Carriers, then

 

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  (ii) divide that amount by the total earned premium for all of Vision’s
business written during 2005, to determine the relative percentage of the Third
Party Carrier business to the total, then

 

  (iii) multiply that percentage by $687,110, then

 

  (iv) subtract that amount from $4,790,030, with the resulting amount becoming
the “Adjusted Conservative EBITDA Target,” then

 

  (v) divide the amount determined in (iii) by the Conservative EBITDA Target,
then

 

  (vi) multiply by $2,100,000, and subtract the result from $2,100,000, to
determine the maximum Earnout Payment for 2005. That reduced maximum amount
shall be substituted for $2,100,000 in Step 2 of the form

If the maximum Earnout Payment for 2005 is reduced per Step 3, the amount of
such reduction shall be added to $2,100,000 to determine the maximum Earnout
Payment for calendar year 2006, and such maximum Earnout payment amount shall be
substituted for $2,100,000 in Step 2 for the year 2006.

Certain Conditions:

The maximum EBITDA Earnout Payment for any full calendar year is $2,100,000;
provided, however, that any portion of that amount deferred for 2005 pursuant to
Step 3 above will be added to the maximum possible Earnout Payment for 2006.

The formula will be applied to each calendar year period within the Earnout
Period on a stand alone basis, and no amounts will carried forward or back for
purposes of computing possible EBITDA Earnout Payments, except with respect to
determining the maximum possible Earnout Payment as expressly provided in Step
3.

Regardless of the amount determined by applying the formula above, no EBITDA
Earnout Payment shall be paid to Sellers if AVIC and its Affiliates collectively
have an Underwriting Loss for the applicable calendar year.

Examples:

 

A. Assume that for calendar year 2008, the actual Vision EBITDA were
$15,000,000. Applying Step 1, $15,000,000 less the Conservative EBITDA Target of
$8,908,838 would result in $6,091,162. Because this is a positive number,
applying Step 2, that number would be divided by the EBITDA Range of $9,729,427,
resulting in .6261. Multiplying .6261 by $2,100,000, Sellers would be entitled
to an EBITDA Earnout Payment of $1,314,810.

 

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B. Assume that, for calendar year 2008, the actual Vision EBITDA were
$7,000,000. Applying Step 1, $7,000,000 less the Conservative EBITDA Target of
$8,908,838 would result in ($1,908,838). Because this result is a negative
number, Sellers would not be entitled to any EBITDA Earnout Payment.

 

C. Assume that for calendar year 2008, the actual Vision EBITDA were
$22,000,000. Applying Step 1, $22,000,000 less the Conservative EBITDA Target of
$8,908,838 would result in $13,091,162. Because this is a positive number,
applying Step 2, that number would be divided by the EBITDA Range of $9,729,427,
resulting in 1.3455. Multiplying 1.3455 by $2,100,000 would result in
$2,825,550. However, because the maximum EBITDA Earnout Payment per year is
$2,100,000, Sellers would be entitled to an EBITDA Earnout Payment of
$2,100,000.

 

D. This example D is designed to illustrate the adjustments that will occur in
2005 and 2006 if any of Vision’s business is written during 2005 by Third Party
Carriers:

Assume that for calendar year 2005: (i) the actual Vision EBITDA were
$8,000,000, (ii) the direct written premium for Vision’s business written by
Third Party Carriers were $30,000,000, and (iii) the total direct written
premium for all of Vision’s business were $70,000,000.

Because some of Vision’s business has been written by Third Party Carriers, it
is necessary to apply Step 3 next.

Applying Step 3:

 

  (i) Start with $30,000,000, which is the total earned premium written by Third
Party Carriers in 2005.

 

  (ii) $30,000,000 divided by $70,000,000 equals .4286, which is the relative
percentage of Third Party Carrier business to total business.

 

  (iii) .4286 multiplied by $687,110 equals $294,495, which is the portion of
the Conservative EBITDA Target for 2005 related to the Third Party Carrier
business.

 

  (iv) $4,790,030 minus $294,495 equals $4,495,535, which becomes the Adjusted
Conservative EBITDA Target.

 

  (v) $294,495 divided by the Conservative EBITDA Target of $4,790,030 equals
.0615, which is the percentage by which the maximum Earnout Payment should be
reduced.

 

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  (vi) .0615 multiplied by $2,100,000 equals $129,150, and $2,100,000 minus
$129,150 equals $1,970,850, which is the adjusted maximum Earnout Payment for
2005.

Then applying Step 1 of the formula, the Vision EBITDA of $8,000,000 less the
Adjusted Conservative EBITDA Target of $4,495,535 would be $3,504,465, which is
a positive number.

Thus, applying Step 2, $3,504,465 would be divided by the EBITDA Range of
$4,176,598, resulting in .8391. Multiplying .8391 by the maximum Earnout Payment
of $1,970,850, Sellers would be entitled to an Earnout Payment for 2005 of
$1,653,740.

Completing this example, assume that for calendar year 2006, the actual Vision
EBITDA were $15,000,000. Applying Step 1, $15,000,000 less the Conservative
EBITDA Target of $6,692,598 would result in $8,307,402. Because there was a
reduction in the maximum possible Earnout Payment for 2005 of $129,150, that
amount would be added to $2,100,000, resulting in a maximum possible Earnout
Payment for 2006 of $2,229,150.

Then applying Step 2, $8,307,402 would be divided by the EBITDA Range of
$6,533,652 would result in 1.2715. Multiplying 1.2715 by $2,229,150 would result
in $2,845,045. However, because the maximum EBITDA Earnout Payment for 2006 in
this example is $2,229,150, Sellers would be entitled to an EBITDA Earnout
Payment of $2,229,150.

 

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