The Morale Die was a concept introduced to The Fantasy Trip in Treasure of the Silver Dragon. Basically, each time the players’ opponents have a member downed due to death or wounds, one die is rolled for each remaining member. This roll determines the reaction that particular member will have–from continuing to fight to breaking and running. Here are the house rules I use for the Morale Die:

Die Roll Reaction
1 Continues fighting, no reaction.
2 Continues fighting, no reaction.
3 Continues fighting, no reaction.
4 Hesitates, will not engage voluntarily this turn, but otherwise fights normally.
5 Hesitates, will not take any attack option this turn.
6 Break & Run, will try to disengage and/or run away from danger.
7 Break & Run, will try to disengage and/or run away from danger.
8+ Surrender–opponent drops to his knees, drops weapon and tries to surrender.

+1 to any die roll for each opponent previously downed.
-1 if the opponent has the Veteran or Warrior talent.
-2 if the opponent is a civilian or equivalent of someone who would not normally fight.

An opponent who rolls a Break & Run will only Hesitate (no Attack) for one turn if he is the only one to have the Break & Run option. An opponent who is Engaged when he rolls a Break & Run will try to Disengage for two turns; if unsuccessful, he will then continue to fight normally. An opponent who isn’t engaged will run from fight at every opportunity at top speed, dropping weapons and trying to avoid the adventuring group.

Again–these rules are optional. Use them or ignore them as you see fit.