Skill/Initiative Improvement

One of the most significant rewards of an adventure session is a character's increased experience. Among other things, this includes improvement of skills. Skill ratings are increased by use of experience points.
  Spending Experience Points: During the adventure session, each player should note (perhaps with a pencil checkmark, so it can be erased before the next session) the skill's used during the session. Only skills that the character used during the adventure are eligible for improvement by use of experience points.
  Experience points are converted to increased skill levels between sessions, even if a session ends with a cliff-hanging situation. Of course, in many cases the points will end up being spent in a lull between adventures, but it is assumed that a character can even improve a skill during the heat of battle.
  To improve a skill, a character spends experience points to buy new skill levels. To buy a new level costs points equal to its numerical value up to the skill parent attribute, after this the experience point cost doubles. For instance, to raise Archery 4 up to Archery 5 would cost five experience points. A character may purchase more than level at once, but each level must be paid for separately. For example, if the Archery skill were to be improved from level 4 to level 6, the character would have to spend 11 points total (5+6). Points that are not converted may be accumulated.
  The Handler may award points in specific skills, for use only in that skill (Archery experience points, for example, or Foreboding experience points).
  Initiative: A separate experience point system exists for improving Initiative. Initiative experience points are only awarded in sessions in which there is a life-threatening battle. Initiative points are used to increase levels of Initiative at the square of the level being obtained. For example, a character rising from Initiative 3 to 4 would spend 16 points. Initiative experience points can be used only for Initiative.
  Advance by Observation: If a player character carefully observes another PC successfully accomplishing a task, the observing PC gains one experience point in the appropriate skill. This observation must be a close-up examination of the task and must have the cooperation of the character actually performing the task. If the referee considers the skill sought to be a complicated one (such as Mechanic), the task should take longer than usual to finish (perhaps substantially longer), to represent the fact that the character performing the task is pausing frequently to explain what is being done or to answer questions. A character may gain experience points from observation only if the observed character's skill level is at least as great as the skill level of the observing character.
  Instruction: A character may be taught a skill. Teaching a skill requires an Average check of the Instruction skill. An instructor may teach a number of students equal to that character's Instruction skill level and must have a skill level in the skill being taught. An instructor cannot teach a student whose skill level in the subject taught is equal to or greater than that of the instructor. The task takes four hours per day for one week (seven consecutive days). Successful completion of the task (rolled for at the end of the week) results in experience points for both the students and the instructor. The instructor gains experience in instruction for accomplishing the task. Students gain a number of experience points (in the skill being taught) based on the number of students being taught. If the number of students is less than one-half of the instructor's skill level, each student gains three experience points. If the number of students is half or more than the instructor's skill level, each student gains one experience point.
  New Skills: A character who has a skill level of 0 in a particular skill may still attempt to learn the skill. This may be done either through observation or through instruction. Since the character has a skill level of 0, experience cost for the first level will be one.

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