Sequence
Each character in combat has a statistic called Sequence. Sequence is how quickly a character realizes that danger is imminent and acts in response. Those with the highest sequence act in the first phase. If a character is in plain sight and initiates combat, they therefore do not necessarily go first unless their sequence is highest. If it helps, one should imagine that every time combat is initiated, a call is made for the highest sequence and the person who is present with the highest is the one who acts first.
Each character now takes their own Turn in descending order from highest Sequence to lowest Sequence and each time this finishes, it is considered a single Phase of Combat. If two characters have the same Sequence, the one with higher AGI goes first. If both characters have the same Sequence and AGI, have both roll a d10 and whoever gets the higher number goes first for the duration of Combat. At the end of each Phase, repeat the same rules as the previous Phase, but without Stealth initiation phase.
Stealth Initiation Phase
Single attack by initiating stealthed character. Delay is deducted from that character's upcoming turn.
Combat begins
Begin Phase 1
Characters with Sequence 11 act
Characters with Sequence 10 act
(...)
Characters with Sequence 3 act
Characters with Sequence 2 act
Characters with Sequence 1 act
End Phase 1
Begin Phase 2
Characters with Sequence 11 act
Characters with Sequence 10 act
(...)
Characters with Sequence 3 act
Characters with Sequence 2 act
Characters with Sequence 1 act
End Phase 2
Repeat until all hostiles have been eliminated or all player characters have fled battle.
Combat ends