**Exhibit10.2**

**FIFTHEXTENSION AND MODIFICATIONOFEMPLOYMENT AGREEMENT**

THIS FIFTH EXTENSION AND MODIFICATION OF EMPLOYMENT AGREEMENT (the “Extension”)is entered into as of April 30, 2007 by and between California CoastalCommunities, Inc., a Delaware corporation (“Employer”), and SANDRA G. SCIUTTO (“Executive”).

W I T N E S S E TH:

WHEREAS, Executive and Employer have entered into an EmploymentAgreement dated as of May 1, 1998, an Extension and Modification ofEmployment Agreement dated December 7, 1999, a Second Extension andModification of Employment Agreement dated April 30, 2001, a ThirdExtension and Modification of Employment Agreement dated March 17, 2003, and aFourth Extension and Modification of Employment Agreement dated March 14, 2005(collectively, the “Employment Agreement”), through which Executive hasprovided various executive capacities to Employer and Employer has obtainedvarious executive services by Executive; and

WHEREAS, Employer desires to obtain the benefit of continued service fromExecutive by extending the Employment Agreement, and Executive desires torender continued services to Employer by extending the Employment Agreementpursuant to the terms and conditions of this Extension;

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

# SECTION 1.           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.

# SECTION 2.           EXTENSION OF TERM.  Employer and Executive hereby agree to extendthe term of the Employment Agreement until April 30, 2009.

# SECTION 3.           BASE SALARY.  Effective January 1, 2007 and until theexpiration of the term set forth in Section 2 above, Employer agrees topay Executive a base salary of at least Two Hundred and Six Thousand Dollars($206,000) per year in semi-monthly installments on the same dates theother senior officers of Employer are paid.

### (i)            PaidTime Off.  Executive shall beentitled to five (5) weeks of paid time off (“PTO”) each twelve-month period,in accordance with the terms and provisions set forth in that certainHearthside Homes/California Coastal Communities Employee Handbook Addendum

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### dated December 4, 2006 (the “Addendum”) a copy of which has beendelivered to Executive; and Executive hereby represents and warrants that (i)the Addendum has been fully read and understood, and (ii) Executive agrees tobe bound by the Addendum with respect to all matters of PTO.

# SECTION 4.           BONUS.  From the date hereof and until the expirationof the term set forth in Section 2 above, Employer agrees to provideExecutive with the opportunity to earn an annual incentive bonus of NinetyThousand Dollars ($90,000) based upon achieving performance targets which willbe mutually agreed upon.

IN WITNESS WHEREOF, the parties have executed this Extension as of thedate 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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