Each side quest you complete, The Avatar's experience (EXP) increases

The Honor Flag
A false Avatar lied his way into a free room for the night. But he got cold during the night and demanded more and more blankets. Finally, the inn-keeper, a weak willed sop named Sprellic, ran out of blankets, and in desperation, stole the Honor Flag from De Snel's. Morning came and the false Avatar was gone, with the Honor Flag. De Snel's students now want it back, or for Sprellic to duel with them. There are 2 ways to solve this one. 1) agree to be Sprellic's champion and fight the duels for him, or 2) have Kliftin make a false banner to replace the stolen one. Either way, you have to agree to be the champion. If you choose to duel, place a bet at the pub first. Arrive at noon ready to fight, or to give them the Flag. Probelm Solved. Sprellic can later be found in the tunnels on Buccaneer's Den, but he isn't exactly happy there.