Forestar Group Inc. — Director's Dealing 2010

Feb 11, 2010

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Forestar Group Inc. (FOR)
CIK: 0001406587
Period of Report: 2010-02-09

Reporting Person: Grimm David M (Chief Administrative Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2010-02-09	Common Stock	A	5427	$0.00	Acquired	26597	Direct
2010-02-09	Common Stock	A	19101	$0.00	Acquired	45698	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2010-02-09	Option (right to buy)	$17.80	A	10757	Acquired	2020-02-09	Common Stock (10757)	Direct
2010-02-09	Stock Appreciation Right	$17.80	A	12628	Acquired	2020-02-09	Common Stock (12628)	Direct
2010-02-09	Restricted Share Units	$	A	6371	Acquired		Common Stock (6371)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	1000	Indirect
Common Stock	526	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option (right to buy)	$13.26	2012-02-01	Common Stock (666)	666	Direct
Option (right to buy)	$9.83	2013-08-01	Common Stock (533)	533	Direct
Option (right to buy)	$15.02	2014-02-06	Common Stock (400)	400	Direct
Option (right to buy)	$20.26	2015-02-04	Common Stock (533)	533	Direct
Option (right to buy)	$27.06	2016-02-03	Common Stock (1708)	1708	Direct
Option (right to buy)	$30.56	2017-02-02	Common Stock (1708)	1708	Direct
Option (right to buy)	$28.85	2018-02-12	Common Stock (22300)	22300	Direct
Option (right to buy)	$9.29	2019-02-10	Common Stock (17703)	17703	Direct
Stock Appreciation Right	$9.29	2019-02-10	Common Stock (39404)	39404	Direct
Restricted Share Units	$		Common Stock (12110)	12110	Direct

Footnotes

F1: Restricted shares granted on 2/9/2010 will vest effective 2/9/2013. Restricted shares are subject to a 1% ROA performance criteria.

F2: Restricted shares granted on 2/9/2010 will vest as follows: 6,367 effective 2/9/2011; 6,367 effective 2/9/2012; 6,367 effective 2/9/2013.

F3: In accordance with the Rights Agreement adopted by the Company on December 11, 2007, Preferred Stock Purchase Rights are deemed to be attached to the shares of Common Stock.

F4: Reporting Person acquired shares through acquisitions under 401(k) plan. By trustee of the Temple-Inland Salaried Savings Plan according to the latest report of the Plan Administrator. (Note: Trustee uses unit accounting; therefore, share equivalents may fluctuate slightly from month to month.)

F5: Options Vesting Schedule - Exercise price is $13.26: Options Exercisable 02/01/2006 - 666.

F6: Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off on or around December 28, 2007.

F7: Options Vesting Schedule - Exercise price is $9.83: Options Exercisable 08/01/2007 - 533.

F8: Options Vesting Schedule - Exercise price of $15.02: Options Exercisable 02/06/2007 - 266; Options Exercisable 02/06/2008 - 134.

F9: Options Vesting Schedule - Exercise price of $20.26: Options Exercisable 02/04/2007 - 266; Options Exercisable 02/04/2008 - 133; Options Exercisable 02/04/2009 - 134.

F10: Options Vesting Schedule - Exercise price of $27.06: Options Exercisable 02/03/2007 - 427; Options Exercisable 02/03/2008 - 427; Options Exercisable 02/03/2009 - 427; and Options Exercisable 02/03/2010 - 427.

F11: Options Vesting Schedule - Exercise price of $30.56: Options Exercisable 02/02/2008 - 427; Options Exercisable 02/02/2009 - 427; Options Exercisable 02/02/2010 - 427; and Options Exercisable 02/02/2011 - 427.

F12: Options Vesting Schedule for Options Granted 02/12/2008 - Exercise price is $28.85: Options Exercisable 02/12/2009 - 5,575; Options Exercisable 02/12/2010 - 5,575; Options Exercisable 02/12/2011 - 5,575; Options Exercisable 02/12/2012 - 5,575.

F13: Vesting schedule for Options granted 02/10/2009 - Exercise price is $9.29: Options Exercisable 02/10/2010 - 4425; Options Exercisable 02/10/2011 - 4426; Options Exercisable 02/10/2012 - 4426; and Options Exercisable 02/10/2013 - 4426.

F14: Vesting schedule for Options granted 02/9/2010 - Exercise price is $17.80: Options Exercisable 02/9/2011 - 2,689; Options Exercisable 02/9/2012 - 2,689; Options Exercisable 02/9/2013 - 2,689; and Options Exercisable 02/9/2014 - 2,690.

F15: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/10/2009 - Exercise price is $9.29: SARs Exercisable 02/10/2010 - 9,851; SARs Exercisable 02/10/2011 - 9,851; SARs Exercisable 02/10/2012 - 9,851; and SARs Exercisable 02/10/2013 - 9,851.

F16: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/9/2010 - Exercise price is $17.80: SARs Exercisable 02/9/2011 - 3,157; SARs Exercisable 02/9/2012 - 3,157; SARs Exercisable 02/9/2013 - 3,157; and SARs Exercisable 02/9/2014 - 3,157. SARs will be settled for cash.

F17: Restricted share units granted on 2/10/2009 will vest effective 2/10/2012. Restricted share units will be settled for cash based on the fair market value on the vesting date subject to a 1% ROA performance criteria.

F18: Restricted share units granted on 2/9/2010 will vest effective 2/9/2013. Restricted share units will be settled for cash based on the fair market value on vesting date subject to a 1% ROA performance criteria.