I AM NOT A LAWYER.
The Member shall be personally responsible for costs arising from his invalidation of the Company's insurance policy, from operating beyond the expiry of the insurance policy, from uninsured risks, and from that part of any claim which exceeds the limit of liability.
Let's break this down.
1) The Member shall be personally responsible for costs arising from his invalidation of the Company's insurance policy
I take this to mean that if you fly the aircraft without insurance and break it, or are caught flying outside the terms of the insurance and break it, or are prosecuted for flying without valid insurance for any reason, YOU foot the bill.
2) from operating beyond the expiry of the insurance policy
similar to point (1)
3) from uninsured risks
similar to point (1)
4) and from that part of any claim which exceeds the limit of liability
e.g. something costs £100,000 to fix (e.g. the aircraft + civil action taken against you by a 3rd party) and you are only covered to £50,000, YOU will have to personally find £50,000.
What I would also seek clarification on is if Member #2 did something that you had absolutely nothing to do with, but was related to this agreement, do you still have to pay out of YOUR pocket? I know of situation where this exact problem arises.
e.g. You form a group with 4 others. 1 other person gets the group sued through neglegence. You all MUST pay 1/5 share of whatever.
If possible, get a clause included that states that if any other member screws up, YOU ARE NOT LIABLE FOR THEIR MISTAKE, and not only that, but ensure it is actually legally binding. Another gotcha is that it is there, but unenforcable.
ECAM Actions.