Generally, “subsidiary” refers to a private Fortress subsidiary, “partner company” refers to a public Fortress subsidiary, and “partner” refers to entities with whom one of the foregoing parties has a significant business relationship, such as an exclusive license or an ongoing product-related payment obligation.

Most subsidiary/partner companies provide Fortress with an annual 2.5% equity dividend and a 4.5% royalty on net sales when such sales exist. This incentivizes Fortress to continue to build value over time. Subsidiary/partner companies and Fortress can share resources, personnel, and expertise. Fortress provides all business development efforts including active identification of synergistic portfolio assets and provides ongoing operational, strategic, administrative support.

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