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If a Thane with an Oathstone is in a unit that is broken, the Oathstone is gone and you have to give up VP for the Thane, even if he is not killed in combat.
My question is does the Thane die because you give up his VP or does him live on to fight if his unit rallies.
The thane survives but gives victory points to the enemy due to the shame of lossing the oathstone.
Then afterwards he becomes a Slayer. ;-)