**Exhibit 10.10(b)**

 

**FOURTHEXTENSION AND MODIFICATIONOFEMPLOYMENT AGREEMENT**

 

THIS FOURTH EXTENSION ANDMODIFICATION OF EMPLOYMENT AGREEMENT (the “Extension”) is entered into as of July 20,2005 by and between Hearthside Homes, Inc., a California corporation (“Employer”),which is an indirect wholly-owned subsidiary of California Coastal Communities, Inc.,a Delaware corporation (“Parent”), and ED MOUNTFORD (“Executive”).

 

WITNESSETH:

 

WHEREAS, Executive andEmployer have entered into an Employment Agreement dated as of May 1, 1998,an Extension and Modification of Employment Agreement dated December 7,1999, a Second Extension and Modification of Employment Agreement dated April 30,2001, a Third Extension and Modification of Employment Agreement dated March 18,2003 and a Modification of Employment Agreement dated November 12, 2003 (collectively,the “Employment Agreement”), through which Executive has provided variousexecutive capacities to Employer and Employer has obtained various executiveservices by Executive; and

 

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

 

NOW, THEREFORE, inconsideration of the foregoing recitals and the mutual promises and covenantsherein contained, the parties agree as follows:

 

# SECTION 1.                                CONTINUINGEFFECTIVENESS OF EMPLOYMENT AGREEMENT. Except to the extent of anymodification made pursuant to the terms of this Extension, the EmploymentAgreement shall continue to remain in full force and effect following the datehereof.

#  

# SECTION 2.                                EXTENSION OF TERM.Employer and Executive hereby agree to extend the term of the EmploymentAgreement until April 30, 2007.

#  

# SECTION 3.                                BASE SALARY. EffectiveJune 1, 2005 and until the expiration of the term set forth in Section 2above, Employer agrees to pay Executive a base salary of at least One Hundred andEighty Thousand Dollars ($180,000) per year in semi-monthly installments on thesame dates the other senior officers of Employer are paid.

#  

# SECTION 4.                                BONUS. From thedate hereof and until the expiration of the term set forth above, Employeragrees to provide Executive with the opportunity to earn incentive bonuses of (i) upto Nine Hundred Seventy-Five Thousand Dollars ($975,000) in connection

 

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# with obtainingentitlements for the Upper Bench of the Bolsa Chica Mesa, based upon theamounts for each performance target as set forth on Schedule Aattached hereto; (ii) an incentive bonus in the amount of Two Hundred andSixty Thousand Dollars ($260,000) in the event the proposed sale of the LowerBench of the Bolsa Chica Mesa to the Wildlife Conservation Board for $65 million iscompleted; and (iii) the “Oxnard Project Bonus” that may be earned byExecutive in connection with Hearthside Homes Oxnard LLC’s development projectin Oxnard, California (the “Oxnard Project”) under the terms set forth in theModification of Employment Agreement dated November 12, 2003.

#  

# IN WITNESS WHEREOF, the parties have executed thisExtension as of the date first above written.

#  

|   | “EMPLOYER”         |
|--------|------------------------------|
|   |                         |
|   | HEARTHSIDE  HOMES, INC. |
|   |                         |
|   | By:                          | /s/ Raymond J. Pacini |   |
|   |                         | Raymond  J. Pacini |
|   |                         | Chief  Executive Officer |
|   |                         |
|   | “EXECUTIVE”        |
|   |                         |
|   | /s/ Ed Mountford             |   |
|   |                         |
|   |  Ed  Mountford          |

 

2

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Schedule A

 

**Target Bonus and Performance Objectives**

 

Subject to achieving thePerformance Objectives set forth below during the term of this Agreement,Employer will pay Executive the Target Bonus amount with respect to eachObjective within five business days after such Objective has been accomplished.

 
| ** **    | ** ** | ** **                                                                                                    | ** ** | **Target** | ** ** |
|---------------|------------|---------------------------------------------------------------------------------------------------------------|------------|------------|------------|
| **Executive** | ** ** | **Bolsa Chica Performance Objective**                                                          | ** ** | **Bonus**  | ** ** |
|          |       |                                                                                                          |       |       |       |
| Ed Mountford  |       |                                                                                                          |       |       |       |
|          |       | Upper Bench:                                                                                                  |       |       |       |
|          |       |                                                                                                          |       |       |       |
|          |       | Coastal Development Permit (“CDP”) issued by Coastal  Commission on terms acceptable to the Company |       | $          | 200,000    |   |
|          |       |                                                                                                          |       |       |       |
|          |       | CDP issued by Coastal Commission by December 15,  2005                                                   |       | 500,000    |       |
|          |       |                                                                                                          |       |       |       |
|          |       | City pre-annexation / water agreement executed by October 31,  2005                                      |       | 125,000    |       |
|          |       |                                                                                                          |       |       |       |
|          |       | Grading permit issued                                                                                         |       | 100,000    |       |
|          |       |                                                                                                          |       |       |       |
|          |       | Final Map recorded                                                                                            |       | 50,000     |       |
|          |       |                                                                                                          |       |       |       |
|          |       | Total for Upper Bench                                                                                         |       | $          | 975,000    |   |

 

 
|   |   | **Executive’s initials:** |   |   |   |
|--------|--------|--------------------------------|--------|--------|--------|
|   |   | ** **                     |   |   |   |
|   |   | **CEO’s initials:**       |   |   |   |

 

7/13/2005

 

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