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The end

Beaten, it kneels and offers Kill or Spare.

  • Kill: it drops a unique named trophy weapon, more likely rare at higher ranks. The Dread always drops a Legendary.
  • Spare: it becomes a sworn companion. You can have up to 6 sworn, with 3 companion slots shared with ship's crew. Each has loyalty from 0 to 100 (low loyalty can mean desertion or betrayal), 10 gear slots, a 35% chance of a combat art (Mending, Ward, War Cry, Siphon, Barrage or Nova), timed errands across Tamriel Map's nine provinces, and a 31-star skill tree.
Sources (6)