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Forestar Group Inc. Director's Dealing 2010

Feb 11, 2010

32005_dirs_2010-02-11_16da499c-233c-46fd-8e20-976df9220546.zip

Director's Dealing

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SEC Form 4 — Statement of Changes in Beneficial Ownership

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

Reporting Person: Etheredge Charles T JR (Executive Vice President)

Non-Derivative Transactions

Date Security Code Shares Price A/D Holdings After Ownership
2010-02-09 Common Stock A 4329 $0.00 Acquired 21165 Direct
2010-02-09 Common Stock A 20618 $0.00 Acquired 41783 Direct

Derivative Transactions

Date Security Exercise Price Code Shares A/D Expiration Underlying Ownership
2010-02-09 Option (right to buy) $17.80 A 8580 Acquired 2020-02-09 Common Stock (8580) Direct
2010-02-09 Stock Appreciation Right $17.80 A 10072 Acquired 2020-02-09 Common Stock (10072) Direct
2010-02-09 Restricted Share Units $ A 5081 Acquired Common Stock (5081) Direct

Holdings (Derivative)

Security Exercise Price Expiration Underlying Shares Ownership
Option (right to buy) $13.26 2012-02-01 Common Stock (166) 166 Direct
Option (right to buy) $8.68 2013-02-07 Common Stock (1000) 1000 Direct
Option (right to buy) $15.02 2014-02-06 Common Stock (533) 533 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 (42800) 42800 Direct
Option (right to buy) $9.29 2019-02-10 Common Stock (14162) 14162 Direct
Stock Appreciation Right $9.29 2019-02-10 Common Stock (31523) 31523 Direct
Restricted Share Units $ Common Stock (9688) 9688 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: 6,873 effective 2/9/2011; 6,872 effective 2/9/2012; 6,873 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: Options Vesting Schedule - Exercise price is $13.26: Options Exercisable 02/01/2006 - 166.

F5: Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off on or around December 28, 2007.

F6: Options Vesting Schedule - Exercise price is $8.68: Options Exercisable 02/07/2006 - 1,000.

F7: Options Vesting Schedule - Exercise price of $15.02: Options Exercisable 02/06/2007 - 400; Options Exercisable 02/06/2008 - 133.

F8: 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.

F9: 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.

F10: 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; Options Exercisable 02/02/2011 - 427.

F11: Options Vesting Schedule for Options Granted 02/12/2008 - Exercise price is $28.85: Options Exercisable 02/12/2009 - 10,700; Options Exercisable 02/12/2010 - 10,700; Options Exercisable 02/12/2011 - 10,700; Options Exercisable 02/12/2012 - 10,700.

F12: Vesting schedule for Options granted 02/10/2009 - Exercise price is $9.29: Options Exercisable 02/10/2010 - 3,540; Options Exercisable 02/10/2011 - 3,540; Options Exercisable 02/10/2012 - 3,541; and Options Exercisable 02/10/2013 - 3,541.

F13: Vesting schedule for Options granted 02/9/2010 - Exercise price is $17.80: Options Exercisable 02/9/2011 - 2,145; Options Exercisable 02/9/2012 - 2,145; Options Exercisable 02/9/2013 - 2,145; and Options Exercisable 02/9/2014 - 2,145.

F14: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/10/2009 - Exercise price is $9.29: SARs Exercisable 02/10/2010 - 7,880; SARs Exercisable 02/10/2011 - 7,881; SARs Exercisable 02/10/2012 - 7,881; and SARs Exercisable 02/10/2013 - 7,881.

F15: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/9/2010 - Exercise price is $17.80: SARs Exercisable 02/9/2011 - 2,518; SARs Exercisable 02/9/2012 - 2,518; SARs Exercisable 02/9/2013 - 2,518; and SARs Exercisable 02/9/2014 - 2,518. SARs will be settled for cash.

F16: 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.

F17: 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.