Forestar Group Inc. — Director's Dealing 2010

Feb 3, 2010

SEC Form 4 — Statement of Changes in Beneficial Ownership

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

Reporting Person: Nines Christopher L (Chief Financial Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2010-02-02	Common Stock	M	875	$18.84	Acquired	25511	Direct
2010-02-02	Common Stock	D	875	$18.84	Disposed	24636	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2010-02-02	Restricted Share Units	$	M	875	Disposed		Common Stock (875)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	367	Indirect
Common Stock	67	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option (right to buy)	$9.83	2013-08-01	Common Stock (333)	333	Direct
Option (right to buy)	$15.02	2014-02-06	Common Stock (833)	833	Direct
Option (right to buy)	$20.26	2015-02-04	Common Stock (1250)	1250	Direct
Option (right to buy)	$27.06	2016-02-03	Common Stock (2133)	2133	Direct
Option (right to buy)	$30.56	2017-02-02	Common Stock (2133)	2133	Direct
Option (right to buy)	$28.85	2018-02-12	Common Stock (22300)	22300	Direct
Option (right to buy)	$9.29	2019-02-12	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 share units vested on 2/2/2010; payable in cash based on the fair market value on vesting date.

F2: 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.

F3: 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.)

F4: Spouse 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 $9.83: Options Exercisable 08/01/2007 - 333.

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 of $15.02: Options Exercisable 02/06/2007 - 416; Options Exercisable 02/06/2008 - 417.

F8: Options Vesting Schedule - Exercise price of $20.26: Options Exercisable 02/04/2007 - 416; Options Exercisable 02/04/2008 - 417; Options Exercisable 02/04/2009 - 417.

F9: Options Vesting Schedule - Exercise price of $27.06: Options Exercisable 02/03/2007 - 533; Options Exercisable 02/03/2008 - 533; Options Exercisable 02/03/2009 - 533; and Options Exercisable 02/03/2010 - 534.

F10: Options Vesting Schedule - Exercise price of $30.56: Options Exercisable 02/02/2008 - 533; Options Exercisable 02/02/2009 - 533; Options Exercisable 02/02/2010 - 533; and Options Exercisable 02/02/2011 - 534.

F11: 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.

F12: 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.

F13: 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.

F14: 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.

F15: 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.