As Nos indicated, no stats can go above 10 as per the rulebook.
Most of this confusion steams from the fact that Leadership is a statistic that encompasses a large range of tests.
Leadership
Pinning
Psychic
Attacks (Callidus shredder)
Defense (psychic hood)
In the case of weaken resolve, it will indeed lower your LD value to 2. This mean that a lot of the above tests will likely fail when attempted. The sisters getting hit by WR now indeed have a LD of 2. If a callidus came along and used her template, that canoness would be killed instantly, as per the WH FAQ, since it would be twice the strength of her LD statistic.
The book allows them, when testing for Morale or Pinning, to simply ignore any modifiers to your LD and go by the original value on the stat line. This goes for both positive and negative modifiers. If you had a squad of Seraphims nearby with their angelic visage, you would normally get +1 LD on your regularly Veteran sister superior bringing them to 10. If you use the book, you will have to test on 9. If you opt not to use it, you can then test on 10. That's where the "may" part of the book's description comes into play.
For it's point cost it's one of the best piece of equipment in the game due to the tactical flexibility it gives a SoB player.
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