X0202 4 2006-11-01 0 0001175483 NEWCASTLE INVESTMENT CORP nct 0001124465 NARDONE RANDAL A 0 1 0 0 Secretary Option (Right to Buy) 29.42 2006-11-01 4 J 0 170000 0 A 2006-11-01 2016-11-01 Common stock, par value $0.01 170000 170000 I Fortress Investment Holdings LLC Option grant to Fortress Investment Holdings LLC ("FIH") (Option for number of shares equal to 10% of the number of shares issued by the issuer in common stock offering that settled on November 1, 2006) The Option is fully vested on the date of grant (11/01/06) and is exercisable in thirty equal monthly installments beginning December 1, 2006. Mr. Nardone may be deemed to be the beneficial owner of these shares of common stock by virtue of his benficial ownership of a portion of Fortress Investment Holdings LLC ("FIH"); Mr. Nardone disclaims beneficial ownership of any derivative securities (and the underlying shares of common stock) of the issuer held by FIH except to the extent of his pecuniary interest therein. /S/ Randal A. Nardone 2006-11-01