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                                                                 EXHIBIT 10.12A

                           EXTENSION AND MODIFICATION
                                       OF
                              EMPLOYMENT AGREEMENT

         THIS EXTENSION AND MODIFICATION OF EMPLOYMENT AGREEMENT (the
"Extension") is entered into as of December 7, 1999 by and between California
Coastal Communities, Inc., a Delaware corporation ("Employer"), and SANDRA G.
SCIUTTO ("Executive").

                              W I T N E S S E T H:

         WHEREAS, Executive and Employer have entered into an Employment
Agreement dated as of May 1, 1998 (the "Employment Agreement") through which
Executive has provided various executive capacities to Employer and Employer has
obtained various executive services by Executive; and

         WHEREAS, Employer desires to obtain the benefit of continued service
from Executive by extending the Employment Agreement, and Executive desires to
render continued services to Employer by extending the Employment Agreement
pursuant to the terms and conditions of this Extension;

         NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual promises and covenants herein contained, the parties agree as follows:

         SECTION 1. CONTINUING EFFECTIVENESS OF EMPLOYMENT AGREEMENT. Except to
the extent of any modification made pursuant to the terms of this Extension, the
Employment Agreement shall continue to remain in full force and effect following
the date hereof.

         SECTION 2. EXTENSION OF TERM. Employer and Executive hereby agree to
extend the term of the Employment Agreement until April 30, 2001.

         SECTION 3. BONUS. From the date hereof and until the expiration of the
term set forth in Section 2 above, Employer agrees to provide Executive with the
opportunity to earn an incentive bonus of up to Seventy Five Thousand Dollars
($75,000), based upon the amounts for each performance target which will be
mutually agreed upon and set forth on SCHEDULE A attached hereto.

         SECTION 4. STOCK OPTIONS. Executive shall immediately be granted
options ("Stock Options") to purchase 30,000 shares of Employer's common stock
("Option Shares"), at an exercise price of $7.00 per share. The specific terms
and conditions of such Stock Options shall be governed by the Stock Option
Agreement entered into by and between the Company and Executive as of the date
of this Extension.


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

                                   "EMPLOYER"

                                   CALIFORNIA COASTAL COMMUNITIES, INC.

                                   By  /s/ RAYMOND J. PACINI
                                       ----------------------------------
                                       Raymond J. Pacini
                                       Chief Executive Officer

                                   "EXECUTIVE"

                                   /s/ SANDRA G. SCIUTTO
                                   --------------------------------------
                                   Sandra G. Sciutto

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