If a unit with a Unit Strength of 5 or more loses a combat and, after making its Break test, either Breaks and flees or Falls Back in Good Order, all friendly units within 6" must immediately make a Panic test.

Leave the friendly unit that caused the Panic test in place until the tests are made in order to give a point to measure from. Once all tests have been made, any unit that failed its Panic test will flee directly away from the nearest enemy unit which is not itself fleeing.

Note that it does not matter if the unit that lost combat Breaks and flees or Falls Back in Good Order as, amidst the clamour of battle, friendly units are seldom able to tell the difference.