Dwarves start with ST 10, DX 6, IQ 8, MA 10 and have 12 points to distribute. They are very greedy and hate orcs and goblins. Hobbits start with ST 4, DX 12, IQ 8, MA 10 and have 10 points to distribute. Orcs have the same attributes as Humans. Goblins start with ST 6, DX 10, IQ 10, MA 10 and have 10 points to distribute.
Characters get ep for killing monsters, making impressive die rolls and good roleplaying.
For monsters, the best way to award ep is on a party basis. Total up the ep for all monsters defeated during the adventures and divide them evenly among the surviving party members. Award 5 extra ep for each die of damage that the monster does, plus 5 ep for each spell-like ability. Also, the GM should award ep for roleplaying. Another option is to let the party vote on the character that added the most to the adventure.