At each level break following level one you have a chance to pause the game and take some real-life time to improve your character's capabilities.  This is a fairly straightforward, if time consuming, task that will (generally) improve your character and make him (or her) better at interacting with the world around him.  There are three parts to this exercise:


Roll for temporary stats:

This must be done even if your temporary stats are equal to your potential stats (they can always decrease).  Repeat the following procedure for each stat.

Roll 2d10 and note each number separately
For each stat there can be only one result:
    [1] If double (1-5) are rolled, decrease the temp stat by that number (1-5)
    [2] If double (6-0) are rolled, increase the temp stat by double that number (12-20)
    [3] If (potential-temporary) >20 then that temp stat increases by both d10 rolls
    [4] If (potential-temporary) 19>=difference>10 then increase the temp stat by the higher roll
    [5] If (potential-temporary) 10>=difference then increase the temp stat by the lower roll

NOTE: In no case can your temporary stat ever exceed your potential stat!

If in doubt, the following diagram should help clarify any questions:


Purchase new ranks in skills and categories:

Repeat the process in One Final Note to determine your new DP total and spend from there.  This is identical to the process used at character creation.  You may spend DP to increase your skill (gain ranks) in varies skills and categories, including spell lists until you have run out of points to spend.

Add Everything Up:

From there, add up all bonuses (which will likely include new skill, category, and stat bonus totals) and update your character sheet.  Once you have completed this, congratulations!  You are now ready to continue the adventure at your new level of experience.