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: DeCosmo James M (Director, CEO - President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2010-02-09	Common Stock	M	6666	—	Acquired	84792	Direct
2010-02-09	Common Stock	D	6666	—	Disposed	78126	Direct
2010-02-09	Common Stock	A	16152	$0.00	Acquired	94278	Direct
2010-02-09	Common Stock	A	32191	$0.00	Acquired	126469	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2010-02-09	Option (right to buy)	$17.80	A	32016	Acquired	2020-02-09	Common Stock (32016)	Direct
2010-02-09	Stock Appreciation Right	$17.80	A	37584	Acquired	2020-02-09	Common Stock (37584)	Direct
2010-02-09	Restricted Share Units	$	M	6666	Disposed		Common Stock (6666)	Direct
2010-02-09	Restricted Share Units	$	A	18961	Acquired		Common Stock (18961)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	547	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option (right to buy)	$11.76	2011-02-02	Common Stock (833)	833	Direct
Option (right to buy)	$13.26	2012-02-01	Common Stock (2000)	2000	Direct
Option (right to buy)	$8.68	2013-02-07	Common Stock (1666)	1666	Direct
Option (right to buy)	$15.02	2014-02-06	Common Stock (1666)	1666	Direct
Option (right to buy)	$20.26	2015-02-04	Common Stock (5333)	5333	Direct
Option (right to buy)	$27.06	2016-02-03	Common Stock (6150)	6150	Direct
Option (right to buy)	$30.56	2017-02-02	Common Stock (6150)	6150	Direct
Option (right to buy)	$28.85	2018-02-12	Common Stock (74000)	74000	Direct
Option (right to buy)	$9.29	2019-02-10	Common Stock (59010)	59010	Direct
Stock Appreciation Right	$9.29	2019-02-10	Common Stock (131345)	131345	Direct
Restricted Share Units	$		Common Stock (8333)	8333	Direct
Restricted Share Units	$		Common Stock (40366)	40366	Direct

Footnotes

F1: Performance share units vested 2/2/2010. Conditions of payment satisfied 2/9/2010. Performance share units are being settled for cash based on the fair market value on 2/2/2010.

F2: Restricted shares granted on 2/9/2010 will vest effective 2/9/2013. Restricted shares are subject to a 1% ROA performance criteria.

F3: Restricted shares granted on 2/9/2010 will vest as follows: 10,731 effective 2/9/2011; 10,730 effective 2/9/2012; 10,730 effective 2/9/2013.

F4: 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.

F5: 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.)

F6: Options Vesting Schedule - Exercise price is $11.76: Options Exercisable 02/04/2005 - 833.

F7: Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off on or around December 28, 2007.

F8: Options Vesting Schedule - Exercise price is $13.26: Options Exercisable 02/01/2006 - 2,000.

F9: Options Vesting Schedule - Exercise price is $8.68: Options Exercisable 02/07/2007 - 1,666.

F10: Options Vesting Schedule - Exercise price of $15.02: Options Exercisable 02/06/2007 - 1,250; Options Exercisable 02/06/2008 - 416.

F11: Options Vesting Schedule - Exercise price of $20.26: Options Exercisable 02/04/2007 - 2,666; Options Exercisable 02/04/2008 - 1,333; Options Exercisable 02/04/2009 - 1,333.

F12: Options Vesting Schedule - Exercise price of $27.06: Options Exercisable 02/03/2007 - 1,537; Options Exercisable 02/03/2008 - 1,537; Options Exercisable 02/03/2009 - 1,537; and Options Exercisable 02/03/2010 - 1,537.

F13: Options Vesting Schedule - Exercise price of $30.56: Options Exercisable 02/02/2008 - 1,537; Options Exercisable 02/02/2009 - 1,537; Options Exercisable 02/02/2010 - 1,537; and Options Exercisable 02/02/2011 - 1,537.

F14: Options Vesting Schedule for Options Granted 02/12/2008 - Exercise price is $28.85: Options Exercisable 02/12/2009 - 18,500; Options Exercisable 02/12/2010 - 18,500; Options Exercisable 02/12/2011 - 18,500; Options Exercisable 02/12/2012 - 18,500.

F15: Vesting schedule for Options granted 02/10/2009 - Exercise price is $9.29: Options Exercisable 02/10/2010 - 14,752; Options Exercisable 02/10/2011 - 14,752; Options Exercisable 02/10/2012 - 14,753; and Options Exercisable 02/10/2013 - 14,753.

F16: Vesting schedule for Options granted 02/9/2010 - Exercise price is $17.80: Options Exercisable 02/9/2011 - 8,004; Options Exercisable 02/9/2012 - 8,004; Options Exercisable 02/9/2013 - 8,004; and Options Exercisable 02/9/2014 - 8,004.

F17: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/10/2009 - Exercise price is $9.29: SARs Exercisable 02/10/2010 - 32,836; SARs Exercisable 02/10/2011 - 32,836; SARs Exercisable 02/10/2012 - 32,836; and SARs Exercisable 02/10/2013 - 32,837.

F18: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/9/2010 - Exercise price is $17.80: SARs Exercisable 02/9/2011 - 9,396; SARs Exercisable 02/9/2012 - 9,396; SARs Exercisable 02/9/2013 - 9,396; and SARs Exercisable 02/9/2014 - 9,396. SARs will be settled for cash.

F19: Restricted share units will vest effective 02/02/2010. Restricted share units will be settled for cash based on the fair market value on the vesting date.

F20: Restricted share units will vest effective 05/04/2010. Restricted share units will be settled for cash based on the fair market value on the vesting date.

F21: 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.

F22: 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.