1. This Directive shall not apply to mutual associations which fulfil all the following conditions:
(a) the articles of association must contain provisions for calling up additional contributions or reducing their benefits;
(b) their business does not cover liability risks unless these constitute ancillary cover within the meaning of point C of the Annex or credit and suretyship risks;
(c) the annual contribution income for the activities covered by this Directive must not exceed EUR 5 million; and
(d) at least half of the contribution income from the activities covered by this Directive must come from persons who are members of the mutual association.
This Directive shall not apply to undertakings which fulfil all the following conditions:
- the undertaking does not pursue any activity falling within the scope of this Directive other than the one described in class 18 in point A of the Annex,
- this activity is carried out exclusively on a local basis and consists only of benefit