COMPLETION BOND Bond No. 101581917
KNOW ALL PERSONS BY THESE PRESENTS:
WHEREAS, City of Huntington Beach (hereafter referred to as "City") has, by written Lease Agreement dated, October 1, 2024, entered into an Agreement with Surf City Partners, LLC (hereafter referred to as "Principal") for completion of the work described as follows:
onstruction of a new Restaurant located at 21 Main Street and renovations and additions to the Restroom torage Building located at 22 Main Street, the "Improvements" as outlined in Section 5. Exhibit "E" of the Leas Agreement.
/HEREAS, said Lease Agreement, and all documents referenced therein (hereinafter collective Agreement"), are incorporated herein by this reference made a part hereof as though set forth herein full; and
Said Principal is required under the terms of Section 5 of the Agreement to furnish a bond guaranteeing the prompt, full and faithful completion of the building construction, by a duly admitted surety insurer under the laws of the State of California (hereinafter referred to as "Suretv": and Surety is certified and listed in the U.S. Department of the Treasury Circular 570, and has provided proof of sufficient bonding limitations as shown in said circular to provide bonds in the amount required by said Contract; and
Surety has provided financial strength ratings from reputable companies, such as from AM. Best, Moody's, or Standard & Poor's, to validate that Surety has positive ratings of being secure or stable; and Surety is registered and listed with the California Department of Insurance, NOW, THEREFORE, we, the undersigned, as Principal, and
Merchants Bonding Company (Mutual)
P.O. Box 14498, Des Moines, IA 50306-3498
(Surety's Name and Address)
as Surety, are held and firmly bound unto City in the penal sum of One Million Three Hundred Thousand Dollars, ($1,300,000), this amount being not less than one hundred percent of the price set forth in Section 5 of the Agreement, in lawful money of the United States, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these THE CONDITION OF THIS OBLIGATION IS SUCH THAT if the Principal shall promptly, fully and faithfully perform each and all of the obligations and things to be done and performed by the Principal in strict accordance with the terms of the Agreement as said Agreement mav be altered, amended or modified from time to time: and if the Principal shall indemnifv and save harmless City and all of City's officers, and damages, claims, judgments, stop notices, fees and costs of every description, whether imposed by modifications incorporated therein; and if in the event of default by the Principal, the City shall have the right, but not the obligation, to declare the Principal in default and to require the Surety to promptly perform or cause to be performed the remaining work, or to reimburse the City for all reasonable costs incurred to complete or correct the Improvements, up to the penal sum of this Bond, then this obligation shall be void; otherwise it shall remain in full force and effect.
Surety stipulates and agrees, for value received, that no adjustment of the time or cost in the Agreement or any alteration, change, deletion, addition or other modification to the Agreement, or the work to be performed thereunder, shall in any way affect, limit, restrict, impair or release the obligations of the Surety under this Bond. thereunder, and agrees to any increase to the scope or cost of the Improvements shall require a written bond rider or amendment executed by the Surety and approved by the City. No such modification shall reduce or impair the obligations of the Surety unless expressly approved in writing by the City. Surety expressly waives any defenses based on notice, extensions of time, changes in scope, amendments to the Agreement, or alterations to the work, except as expressly approved in writing by the City.
Bond No. 101581917
Surety also waives the provisions of Civil Code §§ 2845 and 2849.
The obligations of this Bond shall survive final building inspection and occupancy and shall remain in full force and effect until the City provides written confirmation of final completion and acceptance of the Improvements, including satisfaction of all permit conditions, punch-list items, and Lease requirements, and the expiration of any applicable cure period.
IN WITNESS WHEREOF, each party represents and warrants that this instrument has been duly executed by Principal and Surety, on the date set forth below, that the name of each corporate party being affixed hereto is such party's proper legal name and that the individuals signing this instrument have beer duly authorized pursuant to the authority of its governing body. Surety, by execution of this bond, waives any defense which Surety has or may have by reason of any failure of the Principal to execute or properly execute this bond.
Dated: January 13, 2026
ATTEST
[Corporate Seall Surf City Partners, LLC
By:
Jeffery J. Bergsma, Managing Member
By:
Keith B. Bohr, Managing Member
[Corporate Seal] Made Swiza
Mark Sweigart, Surety Witnes: Merchants National Indemnity Company (Surety Name)
By: Macau Charon
Name: Sarah C. Brown, Attorney-in-Fact
48ignature of Attorney-in-Fact for Surety)
(515) 558-8764
(Attach Attorney-in-Fact Certificate) (Area Code & Telephone Number for Surety) NOTES: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached.
15-4584/117174 Page 2 of 2 PERFORMANCE BOND
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT Civil Code § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfullness, accuracy or validity of that document. ... ...
State of
County of
On before me, Tame an is Notary Public
Date
personally appeared Jeffery J. Bergsma
Name and or Names of Signer(s)
Who proved to me on the basis of satisfactory evidence
to be the person(s) whose names) is/are subscribed
to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(les), and that by his/her/their signature(s) on the Instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.
Witness my hand and official seal.
Signature
Notary Publc Signature Place Notery Public Seal Above
OPTIONAL
Though the information below is not required by law, it may prove valuable to the persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document
Document Date Number of Pages:
Signer's Name:
• Individual • Individual
• Corporate Officer - Title(s):_ • Corporate Officer - Title(s):
• Partner - • Limited • General IGHT THUMBPRIN • Partner - • Limited • General • Guardian or Conservator F SIGNE • Guardian or Conservator Top of thumb Top of thumb
X Attorney-in-Fact • Attorney-in-Fact
• Trustee • Trustee
• Other: • Other:
Signer is representing Signer is representing
...
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT Civil Code § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfullness, accuracy or validity of that document.
State of
County of
On before me, Name and Ta rong tary Public
Date
personally appeared Keith B. Bohr
Name and or Names of Signers)
Who proved to me on the basis of satisfactory evidence
to be the person(s) whose names) is/are subscribed
to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(les), and that by his/her/their signature(s) on the Instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.
Witness my hand and official seal.
Signature
Notary Public Signature Place Notery Public Seal Above
OPTIONAL
Though the information below is not required by law, it may prove valuable to the persons relying on the document and could prevent fraudulent remova and reattachment of this form to another document
Description of Attached Document
Title or Type of Document
Document Date Number of Pages:
Signer's Name:
• Individual • Individual
• Corporate Officer - Title(s):_ • Corporate Officer - Title(s):
• Partner - • Limited • General • Partner - • Limited • General • Guardian or Conservator • Guardian or Conservator
Top of thumb Top of thumb
X Attorney-in-Fact • Attorney-in-Fact
• Trustee • Trustee
• Other: • Other:
Signer is representing Signer is representing
••••
Bond No. 101581917
ACKNOWLEDGEMENT OF SURETY
State of Colorado
SS.
County of Arapahoe
On this 13th day of January 2026 _, before me, a Notary / -
Public, personally appeared Sarah C. Brown
known to me to be the Attorney-in-Fact of
Merchants National Indemnity Company -, the corporation that is described in and that executed the attached instrument, and acknowledged to me that such corporation executed the same, and that she is
Attorney-in-Fact - of the corporation described in and which executed the foregoing instruction; that she knew the seal of the corporation; and that the seal affixed to said instrument was such corporate seal; that is was so affixed by order of the Board of Directors of said corporation and that she signed her name thereto by like order.
thutts
Signature of Notary Public - Lindsey Minutillo
My Commission Expires: April 19, 2029
(Seal)
LINDSEY MINUTILLO
Notary Public
State of Colorado
Notary ID # 20174017004
My Commission Expires 04-19-2029
MERCHANTS
BONDING COMPANY™.
POWER OF ATTORNEY
Know All Persons By These Presents, that MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, INC., both being corporations of the State of lowa, and MERCHANTS NATIONAL INDEMNITY COMPANY, an assumed name of Merchants National Bonding, Inc., (herein collectively called the "Companies") do hereby make, constitute and appoint, individually, Alissa Cahalan; Anne Crowner; Ashlea McCaughey; Austin Muehlschlegel; Ben Williams; Brian J Ostreich; Brian M Deimerly; Cameron M Burt; Colby D White: Connor Oberg: Craig E Hansen: DioneR Young: Donald E Appleby; Douglas Muth; Ginger Hoke: Grace Rasmussen; Graydon Dotson; Greg Krier; Jamie Gifford; Jay D Freiermuth; Jenni Marino; Jessie Allen; Joe Tiernan; John Cord; Joseph Cardinal; Joshua R Loftis; Kate Zanders; Keeton Welch; Kristine M Becks; Lindsey Minutillo; Mark R DeWitt; Mark Sweigart; Melinda C Blodgett; Michelle Morrison; Michelle R Gruis; Nathan Weaver; Nicole Stillings; R C Bowman; Ryan Olivia E Lundy; Sandra M Engstrum; Sara Huston; Sarah C Brown; Seth Rooker; Taylor Fogle: Ted Jorgensen; Tim McCulloh; Todd Bengford; Zach Fuller their true and lawful Attorneys)-in-Fact, to sign its name as surety(ies) and to execute, seal and acknowledge any and all bonds, undertakings. contracts and other written instruments in the nature thereof, on behalf of the Companies in their business of guaranteeing the fidelity of persons. guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law.
This Power-of-Attorney is granted and is signed and sealed by facsimile under and by authority of the By-Laws adopted by the Board of Directors of the Companies.
"The President, Secretary, Treasurer, or any Assistant Treasurer or any Assistant Secretary or any Vice President shall have power and authority to appoint Attorneys-in-Fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof." "The signature of any authorized officer and the seal of the Company may be affixed by facsimile or electronic transmission to any Power of Attorney or Certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship o obligations of the Company, and such signature and seal when so used shall have the same force and effect as though manually fixed." In connection with obligations in favor of the Florida Department of Transportation only, it is agreed that the power and authority hereby given to the Attorney-in-Fact includes any and all consents for the release of retained percentages and/or final estimates on engineering and construction contracts required by the State of Florida Department of Transportation. It is fully understood that consenting to the State of Florida Department of Transportation making payment of the final estimate to the Contractor and/or its assignee, shall not relieve this surety company of any of its obligations under its bond.
In connection with obligations in favor of the Kentucky Department of Highways only, it is agreed that the power and authority hereby given to the Attorney-in-Fact cannot be modified or revoked unless prior written personal notice of such intent has been given to the Commissioner - Department of Highways of the Commonwealth of Kentucky at least thirty (30) days prior to the modification or revocation.
In Witness Whereof, the Companies have caused this instrument to be signed and sealed this 6th day of January . 2026
MERCHANTS BONDING COMPANY (MUTUAL)
MERCHANTS NATIONAL BONDING, INC.
MERCHANTS NATIONAL INDEMNITY COMPANY
-0-
2003
Larry Taylo
By
STATE OF IOWA
COUNTY OF DALLAS ss.
On this 6th day of 2026 , before me appeared Larry Taylor, to me personally known, who being by me duly sworn did say that he is President of MERCHANTS BONDING COMPANY (MUTUAL), MERCHANTS NATIONAL BONDING, INC., and MERCHANTS NATIONAL INDEMNITY COMPANY; and that the seals affixed to the foregoing instrument are the Corporate Seals of the Companies; and that the said instrument was signed and sealed in behalf of the Companies by authority of their respective Boards of Directors.
Penni Miller
Commission Number 787952 Soni
My Commission Expires
January 20, 2027
Notary Public
(Expiration of notary's commission
does not invalidate this instrument)
1, Elisabeth Sandersfeld, Secretary of MERCHANTS BONDING COMPANY (MUTUAL), MERCHANTS NATIONAL BONDING, INC., and MERCHANTS NATIONAL INDEMNITY COMPANY do hereby certify that the above and foregoing is a true and correct copy of the POWER-OF- ATTORNEY executed by said Companies, which is still in full force and effect and has not been amended or revoked.
In Witness Whereof, I have hereunto set my hand and affixed the seal of the Companies on this 13th day of January ,2026 CORPOR atalesem
1933 2003 Secretary
POA 0018(5/25)