Varros attacks Grimtooth, whose back is turned. But as if the hobgoblin had a sixth sense, he sidesteps and dodges the blow completely. Still, the hobgoblin somehow keeps his focus on Duran. In one swift, fluid motion, he sweeps with his axe, avoiding Duran's parry, and cuts Duran in the arm. Duran, in his own right, tries with all his might to carve into Grimtooth with his own axe and succeeds in dealing a minor wound, scraping the foul humanoid along the ribs.
Garrh thrusts his spear at Gaven, but in his wounded state the goblin is unable to penetrate Gaven's armor. The goblin still has just enough strength left to dodge Gaven's attempt at skewering him. However, a second spear thrust – this time from Stan – is just too much for the goblin to handle, and Stan's spear goes into Garrh's torso clean up to the mercenary's fist.
Oloc, standing ready to assist Stan and Gaven should they need it, holds as he sees the goblin fold and fall.
Realizing he is now alone, Grimtooth quickly changes tactics, and jumps backward to assume a defensive position, centered in the doorway. He clearly does not like being flanked. He towers menacingly, darkened by the dim torchlight from the room behind him, axehead streaked with Duran's blood, and a smoldering defiance in his eye.
Note that Varros is at 3 hp and Duran is at 4 hp. All others are at full hp.
Combat Round 2
Goblins win initiative (5-4; Varros has initiative over Grimtooth for blindside attack [effectively a localized semi-"surprise" attack, mid-fight])
Varros (attacks Grimtooth from behind)
d20 = 8 + 2 (rear attack) = 10 (miss)
Grimtooth (attacks Duran)
d20 = 19 +1 (hit bonus) = 20; d6 = 3 (Duran down to 4 hp)
Garrh (attacks Gaven)
d20 = 8 (miss)
Duran (attacks Grimtooth)
d20 = 20 (hit); d6 = 1 (slight wound)
Gaven (attacks Garrh)
d20 = 10 (miss)
Stan (attacks Garrh)
d20 = 12 + 1 (flank) = 13 (hit); d6 = 6 (Garrh killed)