MORALE NUMBER: Each NPC or group of NPC’s is assigned a Morale Class by the DM, and rolls its morale number based on that class.
MORALE CHECK: the DM rolls a Morale Check for each group in the following circumstances:
The check is made by rolling 1d20 and if the result is equal to or less than the group’s morale number, the check is passed. If the roll exceeds the morale number, the check is failed.
MORALE RESULTS If a morale check is passed, the group in question continues fighting normally until the next morale check. If the morale check is failed, the group will retreat on its next movement phase, even if that means members suffer a free attack. The group will flee away from their enemies toward a means of escape. If there is no escape, make a second check. Success indicates that the group will stop and fight till the end, a failure means the group will surrender.
RALLY A leader of some sort can attempt to Rally a group that has failed a morale check and is fleeing. The leader must give up his attacks on the next turn and be within 1’ x CHA score from the closest group member. During the morale phase, the leader must roll his CHA or less on 1d20, if he succeeds, the group can re-roll its morale check.