The Witch-king only loses a Will Point for having been in a Combat if he loses a Combat during the Fight phase (for example, if he doesn’t win the Duel Roll to see which side may make Strikes).
Whilst Engaged in Combat with an enemy Man model, the Witch-king gains a bonus of +1 to his Fight Value.
Friendly Angmar Orc models within 3" of a friendly Spirit Hero model gain the Terror special rule.