Exhibit 10.3

THIRD

AMENDED AND RESTATED

CREDIT AGREEMENT

among

ALFA CORPORATION and certain of its affiliates,

as Borrowers,

AMSOUTH BANK,

as Lead Arranger and Administrative Agent,

AND

KEYBANK NATIONAL ASSOCIATION,

as Documentation Agent,

AND

SOUTHTRUST BANK

as Co-Agent,

AND

SUNTRUST BANK,

as Syndication Agent,

AND

THE SEVERAL LENDERS FROM

TIME TO TIME PARTY HERETO

$300,000,000 Revolving Credit Facility

Dated May 23, 2003

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SECOND AMENDMENT TO

THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“this
Amendment”) dated as of May 20, 2005 (the “Effective Date”), is entered into by
and among ALFA CORPORATION, a Delaware corporation (“ALFA”), ALFA FINANCIAL
CORPORATION, an Alabama corporation (“Financial”), ALFA LIFE INSURANCE
CORPORATION, an Alabama corporation (“Life”), ALFA INSURANCE CORP., an Alabama
corporation (“AIC”), ALFA GENERAL INSURANCE CORP., an Alabama corporation
(“General”; ALFA, Financial, Life, AIC and General are sometimes together
referred to as the “Initial Participating Entities”; ALFA and the Initial
Participating Entities, together with all entities that hereafter become
Participating Entities, being hereafter sometimes together referred to as the
“Borrowers”), AMSOUTH BANK, an Alabama banking corporation (“AmSouth”), and the
various lenders identified on the signature pages hereto (collectively, with all
other persons that may from time to time hereafter become Lenders under the
Credit Agreement (as defined below) by execution of an Assignment and
Acceptance, the “Lenders”) and AMSOUTH BANK, in its capacity as Agent for the
Lenders (the “Agent”).

Recitals

A. The Borrowers, the Lenders and the Agent have previously entered into that
certain Third Amended and Restated Credit Agreement dated May 23, 2003 (together
with any and all amendments thereto, the “Credit Agreement”). Capitalized terms
not otherwise herein defined shall have the meanings given them in the Credit
Agreement.

B. The Borrowers have requested and the Lenders and the Agent have agreed to
enter into certain amendments to the Credit Agreement, as set forth herein.

Agreement

NOW, THEREFORE, in consideration of the foregoing recitals and in further
consideration of the mutual agreements set forth herein, the Borrowers, the
Lenders and the Agent hereby agree as follows, with such agreements to become
effective as of the Effective Date:

1. Recitals. The recitals hereinabove are hereby incorporated by this reference
as if fully set forth herein.

2. Rules of Construction. This Amendment is subject to the rules of construction
set forth in Section 1.2 of the Credit Agreement.

3. Representations and Warranties of Borrowers. The Borrowers represent and
warrant to the Lenders and the Agent as follows:

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(a) Representations and Warranties in Credit Documents. All of the
representations and warranties set forth in the Credit Documents are true and
correct in all material respects on and as of the Effective Date, except to the
extent that such representations and warranties expressly relate to an earlier
date.

(b) No Default. As of the Effective Date, the Borrowers are in compliance in all
material respects with all the terms and provisions set forth in the Credit
Documents on its part to be observed or performed, and, no Event of Default, nor
any event that upon notice or lapse of time or both would constitute such an
Event of Default, has occurred and is continuing.

(c) Organizational Documents. The articles of incorporation and bylaws of the
Borrowers have not been modified or amended since May 21, 2003.

4. Amendments to Credit Agreement.

(a) The following capitalized terms set forth in Section 1.1 of the Credit
Agreement are hereby amended to read, in their entirety, as follows:

“Applicable LIBO Rate Margin” means a per annum rate equal to .425% (42.5 basis
points).

“Maturity Date” means May 19, 2006.

“Ratio of Losses” means the ratio of losses (not to include normal provisions),
net of recoveries, on Financial’s loan and lease receivables portfolio as
reported on Financial’s income statement divided by the sum of Financial’s loan
loss reserve accounts.

(b) The first sentence of Section 7.1 of the Credit Agreement is hereby amended
to read, in its entirety, as follows:

ALFA shall not permit its consolidated total stockholders’ equity on any date to
be less than $625,000,000 plus 25% of ALFA’s cumulative consolidated net income,
if positive, earned after March 31, 2005 through the last day of the most recent
fiscal quarter for which statements were delivered or required to have been
delivered to the Agent pursuant to Section 5.3, taken as one accounting period.

5. Credit Documents to Remain in Effect. Except as expressly amended herein, the
Credit Agreement and the other Credit Documents shall remain in full force and
effect in accordance with their respective terms.

6. No Novation, etc. Nothing contained in this Amendment shall be deemed to
constitute a novation of the terms of the Credit Documents, nor release any
party from liability for any of the Loans, nor affect any of the rights, powers
or remedies of the Lenders under the Credit Documents, nor constitute a waiver
of any provision thereof, except as specifically set forth in this Amendment.

 

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7. Governing Law, Successors and Assigns, etc. This Amendment shall be governed
by and construed in accordance with the laws of the State of Alabama and shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

8. Headings. The descriptive headings of the sections of this Amendment are for
convenient reference only and shall not be deemed to affect the meaning or
construction of any of the provisions hereof.

9. Entire Agreement. This Amendment constitutes the entire understanding to date
of the parties hereto regarding the subject matter hereof and supersedes all
prior and contemporaneous oral and written agreements of the parties thereto
with respect to the subject matter hereof.

10. Severability. If any provision of this Amendment shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

11. Counterparts. This Amendment may be executed in any number of counterparts,
each of which so executed shall be deemed an original, but all such counterparts
shall together constitute but one and the same instrument.

12. Effect of this Amendment. This Amendment amends and supplements the Credit
Agreement and shall be construed as if it is a part thereof for all purposes.

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the Borrowers, the Lenders and the Agent have caused this
Amendment to be executed and delivered by their duly authorized representatives
on the dates set forth below, to be effective as of the Effective Date.

 

ALFA CORPORATION By:  

/s/ Stephen G. Rutledge

Title:  

Senior Vice President, Chief Financial Officer and Chief Investment Officer

ALFA FINANCIAL CORPORATION By:  

/s/ Stephen G. Rutledge

Title:  

Senior Vice President, Chief Financial Officer and Chief Investment Officer

ALFA LIFE INSURANCE CORPORATION By:  

/s/ Stephen G. Rutledge

Title:  

Senior Vice President, Chief Financial Officer and Chief Investment Officer

ALFA INSURANCE CORP. By:  

/s/ Stephen G. Rutledge

Title:  

Senior Vice President, Chief Financial Officer and Chief Investment Officer

ALFA GENERAL INSURANCE CORP. By:  

/s/ Stephen G. Rutledge

Title:  

Senior Vice President, Chief Financial Officer and Chief Investment Officer

 

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AMSOUTH BANK, as a Lender By:  

/s/ Illegible

Title:  

Assistant Vice President

 

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KEYBANK NATIONAL ASSOCIATION, as a Lender By:  

/s/ Mary K. Young

Title:  

Vice President

 

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WACHOVIA BANK, N.A., as a Lender By:  

/s/ Kelly Peace

Title:  

Assistant Vice President

 

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SUNTRUST BANK, as a Lender By:  

/s/ Kelly Gunter

Title:  

Vice President

 

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COMPASS BANK, as a Lender By:  

/s/ Cheryl Lange

Title:  

Vice President

 

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REGIONS BANK, as a Lender By:  

/s/ Richard Crook

Title:  

Vice President

 

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U.S. BANK NATIONAL ASSOCIATION, as a Lender By:  

/s/ John Holland

Title:  

Senior Vice President

 

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COLONIAL BANK, as a Lender By:  

/s/ Illegible

Title:  

Vice President

 

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WHITNEY NATIONAL BANK, as a Lender By:  

/s/ Mark R. Hope

Title:  

Assistant Vice President

 

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COMERICA BANK, as a Lender By:  

/s/ Janet L. Wheeler

Title:  

Assistant Vice President

 

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AMSOUTH BANK, as Agent By:  

/s/ Illegible

Title:  

Assistant Vice President

 

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