Document:

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                                                                   Exhibit 10.3

                                AMENDMENT NO. 1
                            TO EMPLOYMENT AGREEMENT

   THIS AMENDMENT is made and entered into by and between CALIFORNIA FEDERAL
BANK, a Federal Savings Bank (the "Company"), having a business address at 135
Main Street, San Francisco, California, 94105, and James R. Staff (the
"Executive"), having a mailing address at 6964 Tokalon, Dallas, Texas 75214.

                                   RECITALS

   WHEREAS, the Company and the Executive entered into that certain Employment
Agreement dated as of December 17, 1999 (the "Agreement");

   WHEREAS, the Company is a wholly owned indirect subsidiary of Golden State
Bancorp Inc. ("GSB");

   WHEREAS, Mercury is concurrently entering into an Agreement and Plan of
Merger (the "Merger Agreement") with Citigroup Inc. ("Parent") and Mercury
Merger Sub, Inc., a wholly owned direct subsidiary of Parent; and

   WHEREAS, concurrently with the execution of the Merger Agreement, and as an
inducement to Parent to enter into the Merger Agreement, the Company and the
Executive wish to amend the Agreement as hereinafter provided;

   NOW THEREFORE, in consideration of the premises and mutual covenants herein
contained, the Company and the Executive agree that the Agreement shall be
amended as follows:

                                      I.

   1. Section 13 of the Agreement is amended in its entirety, to read as
follows:

      No Tampering.  The Executive shall not, from and after the Closing Date
   (as defined in the Merger Agreement), (a) until the third anniversary of the
   Closing Date, use or disclose to others any of the customer lists of the
   Company or its subsidiaries in connection with retail banking or otherwise,
   (b) until the second anniversary of the Closing Date, solicit, directly or
   indirectly, for employment, any of the officers or employees of the Company
   or its subsidiaries as of the Closing Date, for so long as they remain
   employees of the Company or its subsidiaries or their respective successors
   or permitted assigns, and (c) until the second anniversary of the Closing
   Date, request, induce or attempt to influence any distributor or supplier of
   goods or services to the Company or any subsidiary thereof as of the Closing
   Date to curtail or cancel any business they may transact with the Company or
   such subsidiary thereof or their respective successors or

                                      1

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   permitted assigns for so long as such distributor or supplier continues in
   such capacity with the Company or its subsidiaries or their respective
   successors or permitted assigns.

   2. Section 17 of the Agreement is hereby amended by adding the following new
Subsection "(b)" to read as follows and subsequent Subsections are renumbered
accordingly:

      (b) Third-Party Beneficiaries.  This Agreement shall inure to the benefit
   of and be enforceable by the parties hereto and Parent. Notwithstanding any
   other provision herein to the contrary, unless the Merger Agreement is
   terminated in accordance with its terms, the Company and the Executive
   hereby agree not to enter into any further amendment of this Agreement
   without the prior written consent of Parent.

                                      II.

   Except as expressly provided herein, the Agreement shall remain in full
force and effect.

                                      2

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   IN WITNESS WHEREOF, the parties hereto have signed this Amendment as of May
21, 2002.

                                                 CALIFORNIA FEDERAL BANK, A
                                                   FEDERAL SAVINGS BANK
                                          By:    -----------------------------
                                          Name:    ---------------------------
                                          Title:  ----------------------------

                                            ------------------------------------
                                            James R. Staff

                                      3<PAGE>

                                                                     EXHIBIT 4.2

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Primer Convenio Modificatorio al Convenio Maestro Post-Escision celebrado, por
una parte, Telefonos de Mexico, S.A. de C.V. (en lo sucesivo "Telmex"),
representada en este acto por su Director de Finanzas y Administracion, Adolfo
Cerezo Perez, y, por la otra parte, America Movil, S.A. de C.V., representada en
este acto por su Director General, Daniel Hajj Aboumrad (en lo sucesivo "America
Movil"), de acuerdo con las siguientes declaraciones y clausulas:

                                  DECLARACIONES

I.   Declaran las partes, por conducto de sus representantes, que:

I.1. Con fecha 18 de enero de 2001, celebraron un Convenio Maestro Post-Escision
(el "Convenio Post Escision"), por virtud del cual, entre otros acuerdos,
     ----------------------
ciertos servicios legales, financieros, contables, de relaciones con
inversionistas y otros de cualquiera otra indole que solicite America Movil o
cualquiera de sus subsidiarias a Telmex o a cualquiera de sus subsidiarias en
los terminos de dicho Contrato.

I.2. Con fecha 25 de septiembre de 2000 se llevo a cabo la Escision de Telmex
resuelta por la Asamblea General Extraordinaria de Accionistas de Telmex de esa
misma fecha (la "Asamblea").

I.3  En la Asamblea se resolvieron, entre otros puntos, que la Cuenta de capital
de aportacion a que se refiere el segundo parrafo de la Fraccion II del Articulo
120 de la Ley del Impuesto sobre la Renta ("Cuca") de Telmex se transmitiera a
                                            ----
America Movil en la misma proporcion en que se le transmitio el capital social.

I.4. Es su voluntad modificar el Convenio Post Escision en los terminos que mas
adelante se describen.

I.5  Sus representantes tienen la autoridad y facultades suficientes para
celebrar el presente Convenio, las cuales no han sido limitadas ni modificadas
en forma alguna.

                                    CLAUSULAS

Primera.  Las partes convienen en modificar, con efectos a partir del 18 de
enero de 2001, la Clausula 10.2 del Convenio Post Escision, a fin de que en lo
sucesivo quede redactada de la siguiente manera:

     "10.2 Cuca: Las Partes hacen constar que en virtud de la Escision de
           ----
     Telmex, la Cuca no consolidada de Telmex se transmitiera a America Movil en
     la misma proporcion en que se le transmitio el capital social, por lo que
     se atribuye dicha cuenta a America Movil en la proporcion mencionada."

Segunda.  Salvo por la modificacion acordada por virtud de la Clausula Primera
que anteceden, los demas terminos y condiciones del Convenio Post Escision no se
modifican y conservan por lo tanto, su misma fuerza y alcances legales.

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Tercera.  Este Convenio estara regido y sera ejecutado de conformidad con las
leyes aplicables en la Ciudad de Mexico, Distrito Federal. Asi mismo, las
partes, en caso de controversia, se someten a la jurisdiccion de los tribunales
competentes del Distrito Federal, renunciando a cualquier fuero que por razon de
su domicilio o por cualquier otra causa pudiese corresponderles.

     Este Convenio se firma por cada una de las partes en 2 (dos) tantos, cada
uno de los cuales se considerara un solo documento original el dia 15 de marzo
de 2001, en la Ciudad de Mexico, Distrito Federal.

TELEFONOS DE MEXICO, S.A. DE C.V.

Por: /s/Adolfo Cerezo Perez
    -----------------------------------------
Nombre: Adolfo Cerezo Perez
Cargo: Director de Finanzas y Administracion

AMERICA MOVIL, S.A. DE C.V.

Por: /s/Daniel Hajj Aboumrad
    ----------------------------------------
Nombre: Daniel Hajj Aboumrad
Cargo: Director General y Apoderado

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                                                      UNOFFICIAL TRANSLATION FOR
                                                      --------------------------
                                                       INFORMATION PURPOSES ONLY
                                                       -------------------------

First Amendment Agreement to the Post-Spin-Off Master Agreement entered into, on
one part, by Telefonos de Mexico, S.A. de C.V. (hereinafter referred to as
"Telmex"), represented in this act by its Finance and Management Director,
Adolfo Cerezo Perez, and, on the other part, America Movil, S.A. de C.V.
represented in this act by its General Director, Daniel Hajj Aboumrad
(hereinafter referred to as "America Movil"), pursuant to the following
statements and clauses:

                                   STATEMENTS

1.   The parties state, through their representatives, that:

I.1. On January 18, 2001, a Post-Spin-off Master Agreement was entered into (the
"Post-Spin-Off Agreement") by virtue of which, among other agreements, certain
 -----------------------
legal, financing, accounting, relations with investors and other services of
whatever kind were established as requested by America Movil or any of its
subsidiaries to Telmex or any of its subsidiaries, were established in terms of
said Agreement.

I.2. On September 25, 2000, the Telmex Spin-Off was carried out as resolved by
the General Special Stockholders Meeting of that same date (the "Meeting").

I.3  Among other matters, the Meeting resolved that the Telmex capital
contribution Account referred to under the second paragraph of Subparagraph II,
Article 120 of the Income Tax Law ("Cuca"), be transferred to America Movil in
                                    ----
the same proportion as its capital stock was transferred.

I.4  It is their will to amend the Post-Spin-Off Agreement under the terms
described hereinafter.

I.5  Their representatives have the sufficient authority and powers, which have
not been limited or amended in any way, to enter into the Agreement herein.

                                     CLAUSES

First.  The parties agree to amend Clause 10.2 of the Post-Spin-off Agreement
effective on January 18, 2001, in order that henceforth it shall be drafted and
shall read as follows:

     "10.2 Cuca: The parties put on record that by virtue of Telmex Spin-Off,
           ----
the unconsolidated Telmex Cuca shall be transferred to America Movil in the same
proportion as the capital stock was transferred, therefore, the mentioned
account is attributed to America Movil in the mentioned proportion".

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Second.  Except for the amendment agreed upon by virtue of preceding First
Clause, the other terms and conditions of Spin-Off Agreement are not amended and
maintain, therefore, their same legal force and consequences.

Third.  This Agreement shall be governed and executed according to the
applicable laws in the City of Mexico, Federal District. In addition, in case of
controversy, the parties are subject to the jurisdiction of the competent courts
of the Federal District, waiving any court that might correspond as per their
domicile or any other cause.

     This Agreement is executed by each party in 2 (two) copies, each copy shall
be considered one sole original document, on March 15, 2001, in the City of
Mexico, Federal District.

TELEFONOS DE MEXICO, S.A. DE C.V.

By: /s/Adolfo Cerezo Perez
   ---------------------------------------
Name: Adolfo Cerezo Perez
Position: Finance and Administration Director

AMERICA MOVIL, S.A. DE C.V.

By: /s/Daniel Hajj Aboumrad
   ---------------------------------------
Name: Daniel Hajj Aboumrad
Position: General Director and Attorney in Fact

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