Question regarding Terrifying

[Fetid Strumpet]

Hey I had a question regarding the Terrifying ability. Under the rules for Terrifying it states a model must test for terrifying under certain conditions, it however doesn't state anywhere I can see that you are exempted from your own side's Terrifying. I doubt very highly that this was the intent, but can anyone mention the relevant page of the rules manuel that would clear this up?

So currently unless I'm missing something, Kirai for example can never be brought within 1" of Datsue-Ba, Onryo, or anything else that has Terrifying because if she does she'll have to make the Test. The same problem would seem to occur with McMorning. Seamus has Terrifying so he is exempt, and Nicodem can consider himself undead whenever it is beneficial to do so.

What am I missing, or is this working as intended?

[WEiRD sKeTCH]

You aren't considered to be "in melee" with a friendly model.

[Fetid Strumpet]

Ahhh thank you, I knew I missed something simple.

[Headcase2]

and Nicodem can consider himself undead whenever it is beneficial to do so.
Not true, he can choose to be undead when he's the target of an ability or something like that (don't have my book with me for the exact wording). Anyway, he's still affected by terrifying since it doesn't target him.