(a) Form of Bond. The performance bond shall be conditioned upon proper installation of all improvements required by the Codified Ordinances, according to the approved plans and specifications, within two years after Council approval of the final plat of the subdivision, and shall provide that the City shall have the right, in the event of default, to install the required improvements, to proceed against the developer and against any surety on the bond for the cost thereof, and so apply to the cost of such improvements any funds deposited with the City or in escrow as security for performance of the conditions of the bond. The bond shall further provide that the developer shall hold harmless the City, its officers and employees, from all claims, demands and causes of action, of every nature and description, arising out of the installation of improvements within the developer's subdivision, conditions existing during the construction or installation of such improvements, and all damages to neighboring property owners resulting from approval of the developer's subdivision by the City and the installation of improvements therein, including without limitation damages resulting from increase in surface water flowing from the subdivision and all claims arising out of changes to natural ditches or drainage courses. The terms "claims, demands and causes of action" shall include all expenses of defending against such claims, demands and causes of action, including fees payable to attorneys and expert witnesses, wages paid to City employees while occupied in defense of such claims, demands and causes of action, and wages or salaries reimbursed by the City to City officers to compensate them for wages and salaries lost while engaged in such defense. The form of each performance bond shall be approved in writing by the Director of Law.