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Forestar Group Inc. Director's Dealing 2010

Jan 12, 2010

32005_dirs_2010-01-12_65ac8898-0408-47f3-a91e-aceac85fd8b5.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: 2010-01-08

Reporting Person: Knight Craig A (Chief Real Estate Officer)

Non-Derivative Transactions

Date Security Code Shares Price A/D Holdings After Ownership
2010-01-08 Common Stock J 1436 $22.47 Disposed 0 Indirect

Holdings (Non-Derivative)

Security Shares Ownership
Common Stock 46191 Direct
Common Stock 1436 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 (1666) 1666 Direct
Option (right to buy) $8.68 2013-02-07 Common Stock (2500) 2500 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 (1666) 1666 Direct
Option (right to buy) $27.06 2016-02-03 Common Stock (3333) 3333 Direct
Option (right to buy) $30.56 2017-02-02 Common Stock (3333) 3333 Direct
Option (right to buy) $28.85 2018-02-12 Common Stock (66500) 66500 Direct
Option (right to buy) $9.29 2019-02-10 Common Stock (35406) 35406 Direct
Stock Appreciation Right $9.29 2019-02-10 Common Stock (78807) 78807 Direct
Restricted Share Units $ Common Stock (4333) 4333 Direct
Restricted Share Units $ Common Stock (24220) 24220 Direct

Footnotes

F1: 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.

F2: By trustee of the Guaranty Financial Group, Inc. Savings and Retirement Plan according to the latest report of the Plan Administrator. (Note: Trustee uses unit accounting; therefore, share equivalents may fluctuate slightly from period to period.)

F3: Mandatory divestiture by 401(k) Plan Administrator upon direction of Plan Trustees in accordance with policy adopted in 2007 for all plan participants.

F4: Options Vesting Schedule - Exercise price is $11.76: Options Exercisable 02/02/2004- 833.

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 $13.26: Options Exerciserable 02/01/2005- 1,666.

F7: Options Vesting Schedule - Exercise price is $8.68: Options Exercisable 02/07/2007 - 2,500.

F8: Options Vesting Schedule - Exercise price of $15.02: Options Exercisable 02/06/2007 - 1,250; Options Exercisable 02/06/2008 - 416.

F9: Options Vesting Schedule - Exercise price of $20.26: Options Exercisable 02/04/2007 - 833; Options Exercisable 02/04/2008 - 416; Options Exercisable 02/04/2009 - 416.

F10: Options Vesting Schedule - Exercise price of $27.06: Options Exercisable 02/03/2007 - 833; Options Exercisable 02/03/2008 - 833; Options Exercisable 02/03/2009 - 833; and Options Exercisable 02/03/2010 - 833.

F11: Options Vesting Schedule - Exercise price of $30.56: Options Exercisable 02/02/2008 - 833; Options Exercisable 02/02/2009 - 833; Options Exercisable 02/02/2010 - 833; and Options Exercisable 02/02/2011 - 833.

F12: Options Vesting Schedule for Options Granted 02/12/2008 - Exercise price is $28.85: Options Exercisable 02/12/2009 - 16,625; Options Exercisable 02/12/2010 - 16,625; Options Exercisable 02/12/2011 - 16,625; Options Exercisable 02/12/2012 - 16,625.

F13: Vesting schedule for Options granted 02/10/2009 - Exercise price is $9.29: Options Exercisable 02/10/2010 - 8,851; Options Exercisable 02/10/2011 - 8,851; Options Exercisable 02/10/2012 - 8,852; and Options Exercisable 02/10/2013 - 8,852.

F14: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/10/2009 - Exercise price is $9.29: SARs Exercisable 02/10/2010 - 19,701; SARs Exercisable 02/10/2011 - 19,702; SARs Exercisable 02/10/2012 - 19,702; and SARs Exercisable 02/10/2013 - 19,702.

F15: 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.

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.