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                                                                    EXHIBIT 10.4

                        AMENDMENT TO EMPLOYMENT AGREEMENT

      This Agreement is dated April 26, 2002, and is effective on the Effective
Date defined below. Its parties are NORTH POINTE HOLDINGS CORPORATION, a
Michigan corporation, of 28819 Franklin Road, Suite 300, Southfield, MI 48034
("NPHC"), NORTH POINTE FINANCIAL SERVICES, INC., a Michigan corporation, of
28819 Franklin Road, Suite 300, Southfield, Ml 48034 ("NPFS") [for purposes of
Section 1 only] and JAMES G. PETCOFF ("Executive").

                                   BACKGROUND

      The Executive has served in various executive capacities in the insurance
industry for many years, including serving as Chief Executive Officer,
President, and as a Director of North Pointe Financial Services, Inc. ("NPFS")
and its affiliates since 1986.

      Since 1993, the Executive has been a party to an Employment Agreement with
NPFS. A copy is attached. NPHC has agreed to purchase NPFS (and interests in
certain other businesses). NPHC recognizes that the Executive's contribution to
NPHC's success will be substantial, as it has been to NPFS' success. NPHC
believes it to be important to ensure Executive's continued employment with NPFS
and its other subsidiaries, and with NPHC, and to provide the Executive with
reasonable remuneration arrangements.

      The parties wish to enter into this Amendment to the Employment Agreement
to clearly define and clarify the terms of Executive's employment as an
executive officer, and director of NPHC.

                                      TERMS

      NOW, THEREFORE, for the consideration stated below, the parties agree as
follows:

      1. Assignment and Assumption. NPFS assigns to NPHC all of its rights under
the Employment Agreement. NPHC assumes all of NPFS' obligations under the
Employment Agreement. The Executive consents to this assignment and assumption.
The Employment Agreement is amended so that every reference in the Employment
Agreement to "NPFS" is changed to "NPHC." All references to Paragraph numbers in
this Amendment refer to the Employment Agreement, unless specified otherwise.

      2. Effective Date. This Amendment is effective on the date of the closing
of NPHC's purchase of NPFS under the terms of the Agreement and Purchase and
Sale between Ernst & Young, Inc., as Interim Receiver of Queensway Financial
Holdings Limited and Queensway Holdings, Inc. as seller and 2005662 Ontario
Limited as purchaser, and the Assignment and Assumption Agreement between
2005662 Ontario Limited as assignor and NPHC as assignee, both dated March 5,
2002 ("Purchase Agreements"). The transactions described in the Purchase
Agreements are collectively called the "Acquisition." If the Acquisition does
not close, the Employment Agreement will remain fully effective.


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      3. Employment. NPHC will employ the Executive as Chief Executive Officer,
President, and Director. NPHC may also employ the Executive as an officer or
director of its subsidiaries. This Agreement's terms govern all such employment.
The Executive accepts this employment

      4. Term of Employment. In Paragraph 2, the Employment Agreement's initial
term of five (5) years will begin on the Effective Date. The phrase "Paragraph
6" is replaced by "the paragraph titled "Termination of Agreement".

      5. Compensation. In Paragraph 4, the Executive initially shall receive an
annual base salary of $550,000 for his services.

      6. Deferred Compensation Plan. The Executive's compensation also includes
compensation as described in NPHC's Executive Deferred Compensation Agreement
and Plan ("Deferred Compensation Plan"). The Executive acknowledges that the
Deferred Compensation Plan is unfunded and unsecured, and the Executive's actual
receipt of deferred compensation under that Plan is contingent on NPHC's
capacity to pay the deferred compensation at the time that the Executive becomes
entitled to receive it.

      7. Acquisition-related Payments. NPHC is entering into credit facilities
to close the Acquisition. The Executive will be required to personally guaranty
these credit facilities. NPHC will pay the Executive an annual fee in the amount
of five (5%) percent of the amount he guarantees as compensation for taking on
this personal liability for NPHC's benefit. This fee will be paid to the
Executive within thirty (30) days of his signing the guaranty. In addition, as
part of the Acquisition the Executive has had to give up rights and claims that
he has against Queensway Financial Holdings Limited, including claims m
connection with the 1998 sale of NPFS. NPHC benefits from the Executive's
actions because the Acquisition could not otherwise take place. NPHC will
reimburse or otherwise compensate the Executive for any liabilities that he
incurs relating to the Acquisition.

      8. Benefits. During the Contract Term the Executive will be entitled to
participate at the highest level in all employee benefit plans or arrangements
maintained by NPHC and/or its subsidiaries, as further described in Paragraph 5.

      9. Benefits: Vacation and Sick Leave. In Paragraph 5(a), the Executive
will be entitled to eight (8) weeks of vacation per year. NPHC adopts the sick
leave and paid time off policies stated in the NPFS Employee Handbook.

      10. Benefits: Reimbursement of Business Expenses. In Paragraph 5(b), the
Executive will be reimbursed for members' dues in two country clubs. All such
amounts reimbursed to the Executive for these business expenses are not to be
considered taxable compensation to the Executive to the extent permitted by law,
but are expenditures by NPHC for its benefit.

      11. Benefits: Perquisites. In Paragraph 5(c)(ii), the Executive's
automobile allowance will be no more than $1,500 per month, subject to
agreed-upon increases.


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      12. Other Benefits. During the Contract Term, NPHC may provide and pay for
and the Executive will be entitled to participate in any other benefit plans
that may be made available to NPHC's executive personnel and that of its
subsidiaries.

      13. Termination of Agreement: Automatic Termination. Paragraph 6(a)(ii) is
replaced by:

      "(ii) the Executive becomes disabled. The Executive is `disabled' (and
            suffers from a `disability') if any of the following occurs:

            a. A court with jurisdiction over the matter appoints a guardian or
      conservator over Executive or his property.

            b. The Executive has been determined to be unable to provide for his
      own basic physical needs such as food, shelter and clothing due to a
      mental or physical condition. This condition must exist for at least six
      consecutive months to qualify as a disability. The physician that
      regularly attends the Executive will make this determination. If NPHC's
      Board of Directors does not agree with the physician's determination, it
      will engage at NPHC's expense a physician to examine the supposedly
      disabled Executive. If those two physicians cannot agree on a final
      opinion, they will chose a third physician, and that physician's opinion
      will control. The expense of the third physician will be evenly divided
      between the Executive and the Board of Directors. The Executive consents
      to examinations discussed in this Subsection, and waives any
      patient-physician privilege resulting from the examination.

            c. Proceeds are paid under a disability insurance policy on the
      Executive.

            d. The Executive receives Social Security disability benefits."

      14. Termination of Agreement: Discretionary Termination. In Paragraph
6(b), additional grounds for NPHC to terminate the Employment Agreement are
"(iv) the Executive is convicted of or pleads guilty or no contest to, a felony
or a crime involving moral turpitude or (v) the Executive commits intentional
acts that the Board of Directors reasonably determines to be substantially
detrimental to the best interests of NPHC."

      15. Termination of Agreement: Suspension of Agreement. In Paragraph 6(c),
the phrase "...unable to perform his duties under this Agreement on a full time
basis for a period of six (6) consecutive months" is replaced with "unable to
perform his duties under this Agreement on a full time basis for a period of
four (4) consecutive months or six (6) months in any consecutive twelve (12)
month period." In Paragraph 6(c), the following is added to the end of the
Paragraph: "If the Executive is unable to perform his duties for twelve (12)
consecutive months, the Agreement will terminate pursuant to the "Automatic
Termination" section above."

      16. Termination of Agreement: Liquidated Damages Upon Termination of
Employment. In Paragraph 6(e), the phrase "...NPHC will pay to the Executive or,
in the event of the Executive's death or legal incompetence, to the Executive's
estate" is replaced with

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"NPHC will pay to the Executive (or if the Executive is deceased or disabled to
the Executive's estate or personal representative)."

      17. Termination of Agreement: Termination by Executive for Cause. In
Paragraph 6(f), the phrase "payment of base salary" will be followed by "or
bonus or other amounts provided for in this Agreement."

      18. Change in Control. In Paragraph 8(b), the phrase "A `Change in
Control' shall be deemed to have taken place if" will be followed by "at any
time after the Effective Date." The following is added to the end of Paragraph
8(b): "For this Agreement's purposes, a `beneficial owner' of NPHC shares
includes any person who, directly or indirectly, through any contract,
arrangement, understanding, relationship, or otherwise has, shares, or within 60
days has the right to acquire, voting power (which includes the power to vote,
or to direct the voting of, any such security) and/or investment power (which
includes the power to dispose, or to direct the disposition of, any such
security) relating to the NPHC shares." In Paragraph 8(c)(ii), the phrase "for
cause" is replaced with "for the reasons stated in the `Discretionary
Termination' provision above." In Paragraphs 8(c)(iv) and (vii), the first word
in both of those paragraphs, "Failure," is replaced with "A material negative
change in or failure."

      19. Termination Payment Maximum. In Paragraph 9, the phrase "payment of
the excise tax or" is added before the phrase "tax penalties to the Executive."

      20. Tax Calculations. All "excess parachute payments" within the meaning
of Code Section 280G will be treated as subject to excise tax under Code Section
280G, unless in the opinion of tax counsel of both NPHC and the Executive, any
such payments of benefits do not constitute parachute payments or represent
reasonable compensation for services actually rendered within the meaning of
Code Section 280G, or are otherwise not subject to the excise tax. If the tax
counsel for NPHC and the Executive do not agree as to the value of the payments
or benefits or any matter effectuating the tax provisions of this Agreement,
they may select any reasonable way to resolve the matter(s), including selection
of an independent expert and consultation with the IRS including preparing a
submission for a private letter ruling. The parties will cooperate and act in
good faith to resolve any open tax issues.

      21. Non-Competition Obligations. In Paragraph 10, the Executive is
prohibited from competing during the Contract Term as well as thereafter as
stated in the Paragraph. After the phrase "in the development of a liquor
liability insurance product or service" add the phrase "or any product or
service in competition with NPHC or its subsidiaries in any lines of business
that constitutes at least 15% of the gross income of NPHC or its subsidiaries."

      22. Settlement of Controversy and Expenses. In Paragraph 11(b), replace
the reference to "National Bank of Detroit" with "Comerica Bank, of Detroit,
Michigan or its successor."

      23. Notices. Any notices to be given under this Agreement may be effected
either by personal delivery in writing or by mail, registered or certified,
postage prepaid with return receipt requested. Mailed notices will be addressed
to the parties at the following addresses. Each party may change his address by
written notice in accordance with this paragraph. Notices delivered

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personally will be deemed communicated as of actual receipt; notices mailed by
certified or registered mail will be deemed communicated as of actual receipt;
notices mailed first class will be deemed communicated as of two (2) days after
mailing:

                   To NPHC:             28819 Franklin Road, Suite 300
                                        Southfield, MI 48034
                                        Attn: Francis C. Flood, General Counsel

                   To the Executive:    5853 Clearview Court
                                        Troy, MI 48098

      24. Entire Agreement. This Amendment together with the Employment
Agreement constitutes a single agreement that supersedes any other agreements,
either oral or in writing, between the parties with respect to the employment of
the Executive by NPHC and its subsidiaries. If there is any conflict between
this Amendment's terms and those of the Employment Agreement, this Amendment
governs

                                    NORTH POINTE HOLDINGS CORPORATION,
                                    a Michigan corporation

                                    By: /s/ John H. Berry
                                        ----------------------------------------
                                        John H. Berry, Treasurer

                                    NORTH POINTE FINANCIAL SERVICES, INC.,
                                    a Michigan corporation [for purposes of
                                    Paragraph 1 only]

                                    By: /s/ John H. Berry
                                        ----------------------------------------
                                          John H. Berry, Chief Financial Officer

                                   /s/ James G. Petcoff
                                   ---------------------------------------------
                                   JAMES G. PETCOFF

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