Break?

The losing unit in a combat must pass a Leadership test or flee! This Break test is modified by the amount by which the unit lost the combat.
In the brutal hack and slash of close combat, it is rare for warriors to fight to the last man. Defeating the enemy is much easier if you can break the resolve of your opponent.
The side that loses a round of close combat must take a test to determine whether it continues to stand and fight, or breaks from the combat and runs away. This is called a Break test. Troops that are better led, braver, and more professional are more likely to stand firm, while wild, temperamental troops are far more likely to run for it.

Taking A Break Test

A Break test is a type of Leadership test. However, before rolling the dice, the difference between the winner's Combat Result score and the loser's is applied as a penalty to the defeated unit's Leadership. The loser rolls 2D6 and compares to their Leadership. If the total rolled is less than or equal to the loser's modified Leadership, the unit stands its ground and settles in for another round of fighting – this close combat has finished for the turn. If the total is greater than the unit's modified Leadership value then the unit has broken and will flee. Note that this modified Leadership is used only for the Break test and any subsequent attempt to make a combat reform (see below).
For example, the High Elves must take a Break test with a -3 penalty to their Leadership, because the difference between the scores was 3. High Elves have a good Leadership value (8) but with the extra -3 penalty their Leadership is reduced to 5 for this test, therefore the player will have to roll 5 or less to stand and fight. The player rolls 2D6 and scores 7 – this is greater than the unit's modified Leadership, so the Elves have broken and will flee.

Insane Courage

There are times when, against all odds, a unit is able to hold the line. When taking a Break test, ff a unit rolls double 1 for its Break test, it passes it, regardless of any other modifiers.
For example: A unit of Night Goblins is charged in the flank by a unit of Chaos Knights. The combat is resolved and the Chaos Knights win the fight by 10 points. The Night Goblins' Leadership of 5 means that they would need to roll -5 or less (assuming, of course, that they are not Steadfast), which is obviously impossible. There still is a point in rolling the dice for the Night Goblins though, because there is a remote chance of rolling a natural, unmodified, double 1, meaning that the Goblins would brave the onslaught & heroically (foolishly?) stand their ground.

Steadfast

If a defeated unit has at least Unit Strength 10 and either more ranks than its enemy or more total unit strength, it takes a Break test without applying the difference in the Combat Result scores. You count all complete ranks (at least five models) including the front rank for the purposes of determining whether or not a unit is Steadfast.
When at war, there's definitely something to be said for having vast numbers at your disposal. Not only will your warriors be worried far less by the odd fallen comrade (there's plenty more where they came from) but they'll also take heart from being more numerous than the enemy.
Simply put, a unit is considered to be Steadfast if it has more ranks than its enemy or a higher unit strength. As with calculating extra ranks for the purposes of Combat Result, the ranks have to be five or more models wide to be counted for the unit to be treated as being Steadfast. The last rank doesn't have to be complete, but must have at least five models. You do count the front rank for this rule. Similarly, the enemy's ranks also have to be five or more models wide to counter your unit from being Steadfast.
Steadfast units don't apply the difference in Combat Result scores to Break tests. To represent the unit or units holding the line based on their own strength of numbers, Steadfast units take their Break test on their own unmodified Leadership.
When there are multiple units in a combat, you count all ranks of your units (or your total unit strength) to compare to all ranks (or total unit strength) of the enemy units to determine Steadfast. If you have more overall ranks/unit strength than your opponent, all of your units are Steadfast. If the enemy has more ranks/unit strength across all of its units than you do in all of yours, none of your units are Steadfast.
Note, a unit does not count its ranks to determine its Steadfast status if it is Disrupted and can only use total unit strength. A flank charge might be able to disrupt a unit, but it can't prevent the warriors in that unit realising they outnumber the foe.
A unit with the Skirmisher special rule can only use total unit strength to determine Steadfast as they fight in a more loose fashion than rank-and-file disciplined troops.
For example: A unit of Imperial Halberdiers is attacked in the rear by a unit of daemonic Bloodletters. Unsurprisingly, the Halberdiers take quite a beating, and end up losing the combat by 7. However, the Bloodletter unit has only 12 models, arranged into two complete ranks and a third rank of 2 Daemons, whilst the Halberdiers still have 30 models left, giving them five ranks of 6 models. As the Halberdiers have more ranks than the Bloodletters, they are Steadfast and will test on their unmodified Leadership of 7.

Despite being disrupted by a flank attack, this Goblin unit is steadfast, because it has more ranks of five or more models than the enemy unit.

This Goblin unit is not steadfast, because it does not have more ranks of five or more models than the enemy unit.

Combat Reform

Assuming that a unit doesn't flee the fight, its leader can attempt to bring more warriors to bear against the foe. This is far easier for the winning side, as they have sufficient momentum, but a disciplined unit can manage this even if on the losing end of a combat.
If both sides wish to Combat Reform, the loser of the combat reforms first. In the case of a tie, roll off to determine who reforms first (the winner of the roll off decides).
If a unit is engaged to more than one facing (say to the front and one flank), it cannot make combat reforms.

The Winner Wants To Reform

If your unit wins the close combat but the enemy does not flee, or the combat was a draw, your unit can immediately make a Combat Reform maneuver.
A Combat Reform is essentially a standard reform (see Maneuvers) save for the fact that the centre point of the reformed unit does not have to stay in the same place. The most common usage of a combat reform is to allow the unit to turn to face its enemy (if attacked in the flank or rear), although it can also be used to bring more models into the fight by increasing the unit's frontage. There are two special restrictions on a combat reform, however – it cannot be used to get a model (friend or foe) out of base contact with the enemy if it was in contact before the reform was made, and the unit may not reform in such a way as to contact a different facing on any enemy unit it is in contact with. The model can be in base contact with a different enemy at the end of the reform if you wish.

Reforming Amid Defeat

If your unit loses the combat, but does not flee, it can still attempt a Combat Reform.
In this case, your unit must pass a Leadership test to muster the necessary discipline to alter its formation. Note that this Leadership test is subject to any modifiers from having lost the fight, just like a Break test. If your unit is Steadfast (or has the Unbreakable special rule – see Special Rules) the test is taken on the unit's unmodified Leadership. If the test is failed, your unit cannot make a Combat Reform. If the test is passed, the Combat Reform can be carried out as described above.

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