Initiative and Surprise

I am in the middle of attempting to learn Fantasy Grounds ruleset writing and chose S&W Complete as my guinea pig :) This is why I will be from time to time posting seeking so me point of rules asking how it was meant to be interpreted. I can certainly adjudicate my own game but wanted to write the ruleset as close to the source as possible. So...

Does the following mean that if side B is surprised, side A goes through all the combat round steps without side B getting its complementary actions until this first surprise round is complete then:

1. Side A automatically wins initiative and goes first, but Side B gets to act on its portions of the combat round. In this setup, Side A gets to act first twice as it were. This is what I imply from the Combat Steps section (and what I would choose in game.)

2. Side A rolls initiative and only gets to go first if wins initiative and t hats the only reason it goes “twice” before side B. This is what I imply from the Surprise section.

Are either of those what was intended or a third option?

Regards,

Dan

Combat:

...

3. Determine Initiative: Each side rolls a d6 and the side with the highest result is the winner. One roll is made for each side, not for each individual. If this is the first round and one group was surprised, the other side gets to go first automatically, without having to roll a die.

...

Surprise:

...

If one side is surprised, the other side automatically gets to take action before the first initiative roll. If they also win that initiative roll, this means they will have taken two actions before the other side has a chance to do anything.

...