**Exhibit10.2**

 

**THIRDEXTENSION AND MODIFICATIONOFEMPLOYMENT AGREEMENT**

 

THISTHIRD EXTENSION AND MODIFICATION OF EMPLOYMENT AGREEMENT (the “Extension”) isentered into as of March 17, 2003 by and between California CoastalCommunities, Inc., a Delaware corporation (“Employer”), and SANDRA G. SCIUTTO(“Executive”).

 

WITNESSETH:

 

WHEREAS,Executive and Employer have entered into an Employment Agreement dated as ofMay 1, 1998, an Extension and Modification of Employment Agreement datedDecember 7, 1999, and a Second Extension and Modification of EmploymentAgreement dated April 30, 2001 (collectively, the “Employment Agreement”)through which Executive has provided various executive capacities to Employerand Employer has obtained various executive services by Executive; and

 

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

 

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

 

# SECTION1.  CONTINUING EFFECTIVENESS OFEMPLOYMENT AGREEMENT.  Except to theextent of any modification made pursuant to the terms of this Extension, theEmployment Agreement shall continue to remain in full force and effectfollowing the date hereof.

#  

# SECTION2.  EXTENSION OF TERM.  Employer and Executive hereby agree toextend the term of the Employment Agreement until April 30, 2005.

#  

# SECTION3.  BASE SALARY.  Effective January 1, 2003 and until theexpiration of the term set forth in Section 2 above, Employer agrees topay Executive a base salary of at least One Hundred and Seventy-Five ThousandDollars ($175,000) per year in semi-monthly installments on the samedates the other senior officers of Employer are paid.

#  

# SECTION4.  BONUS.  From the date hereof and until theexpiration of the term set forth in Section 2 above, Employer agrees toprovide Executive with the opportunity to earn an incentive bonus of up toNinety Thousand Dollars ($90,000), based upon the amounts for each performancetarget which will be mutually agreed upon and set forth on Schedule Aattached hereto.

 

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IN WITNESS WHEREOF, theparties 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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