ZENITH NATIONAL INSURANCE CORP
EX-10.3
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<P ALIGN="RIGHT"><FONT SIZE=2><B>EXHIBIT&nbsp;10.3  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke1621_amendment_no._2_to_employment_agreement"> </A>
<A NAME="toc_ke1621_1"> </A>
<BR></FONT><FONT SIZE=2><B>Amendment No.&nbsp;2 to Employment Agreement    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment dated as of September&nbsp;17, 2002 amends the Employment Agreement (the "Agreement") dated and effective as of January&nbsp;5, 1998, as
amended on March&nbsp;1, 2000, between Zenith National Insurance Corp. (the "Company") and John&nbsp;J. Tickner (the "Employee"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whereas,
the parties desire to amend the Agreement, it is therefore agreed as follows: </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Section
2&nbsp;&#151; </FONT><FONT SIZE=2><I>Term</I></FONT><FONT SIZE=2>&nbsp;&#151; is deleted and the following substituted therefore: </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"2.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Term</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be in effect for a term commencing on the Effective Date and expiring on
March&nbsp;1, 2005, and such period shall be referred to herein as the "Term" of this Agreement, and such Term shall not be affected by the termination of the Employee's employment hereunder." </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Section
3&nbsp;&#151; </FONT><FONT SIZE=2><I>Salary</I></FONT><FONT SIZE=2>&nbsp;&#151; is deleted and the following substituted therefore: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"3.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Salary</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Employees minimum annual base salary shall be as follows: $311,163, effective March&nbsp;1, 2000;
$349,376, effective March&nbsp;1, 2001; $387,589 effective March&nbsp;1, 2002; $422,589, effective March&nbsp;1, 2003; and $447,589, effective March&nbsp;1, 2004. Employee's annual base salary
shall be payable in installments in conformity with the Company's policy relating to salaried employees. The Employee's base salary may be subject to annual adjustment (but not below the then current
amount) in the sole discretion of the Board. </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Section
8 (c)&nbsp;(i)&nbsp;&#151; </FONT><FONT SIZE=2><I>Termination (Constructive Termination)</I></FONT><FONT SIZE=2>&nbsp;&#151; is deleted and
the following substituted therefore: </FONT></P>

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<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Stanley
R. Zax ceases to be full-time Chairman of the Board and President of the Company and Zenith other than by reason of death or disability or by reason
of retirement on or after December&nbsp;31, 2002; provided, however, this clause (i)&nbsp;shall in any event be deleted and of no further force or effect after December&nbsp;31, 2002. </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;In
all other respects, the Agreement remains unchanged. </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Witness Whereof, the parties have executed this Amendment as of the date first written above. </FONT></P>

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<TD COLSPAN=3><FONT SIZE=2>Zenith National Insurance Corp.</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Employee</FONT></TD>
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By:</FONT></TD>
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<TD WIDTH="40%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>STANLEY R. ZAX</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Stanley R. Zax</FONT></TD>
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By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JOHN J. TICKNER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> John J. Tickner</FONT></TD>
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<FONT SIZE=2><A HREF="#toc_ke1621_1">Amendment No. 2 to Employment Agreement</A></FONT><BR>
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