Masterwork Weapons: These beautifully crafted items inflict +1 damage.
Masterwork Armour: Though they weigh the same as their mundane counterparts, when worn, they are considered to be 25% lighter due to their fine balance and materials. Furthermore, the reduce non-magical slashing, piercing and Bludgeoning damage, the amount depending on the category of armour;
Light Armour: 1 point
Medium Armour: 2 points
Heavy Armour: 3 points.
This stacks with similar reductions from feats or similar.