Forestar Group Inc. — Director's Dealing 2011

Jan 14, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Forestar Group Inc. (FOR)
CIK: 0001406587
Period of Report: 2011-01-12

Reporting Person: JASTROW KENNETH M II (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-01-12	Common Stock	J	3770	$19.17	Disposed	0	Indirect

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	173042	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option (right to buy)	$13.26	2012-02-01	Common Stock (33333)	33333	Direct
Option (right to buy)	$8.68	2013-02-07	Common Stock (36666)	36666	Direct
Option (right to buy)	$15.02	2014-02-06	Common Stock (33333)	33333	Direct
Option (right to buy)	$20.26	2015-02-04	Common Stock (33333)	33333	Direct
Option (right to buy)	$27.06	2016-02-03	Common Stock (34166)	34166	Direct
Option (right to buy)	$28.85	2018-02-12	Common Stock (20000)	20000	Direct
Restricted Share Units	$		Common Stock (4213)	12286	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: As reported by the plan administrator on January 12, 2011, between January 1, 2011 and January 12, 2011 the 401(k) plan administrator completed a mandatory divestiture of all stock in the company stock fund upon direction of the plan trustees in accordance with policy adopted in 2007 for all plan participants.

F3: Reporting Person acquired shares through acquisitions under the Temple-Inland 401(k) plan. By trustee of the Temple-Inland 401(k) 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: Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off effective December 28, 2007.

F5: Options Vesting Schedule - Exercise price $13.26: Options Exercisable 02/01/2003 - 8,333; Options Exercisable 02/01/2004 - 8,333; Options Exercisable 02/01/2005 - 8,333; and Options Exercisable 02/01/2006 - 8,333.

F6: Options Vesting Schedule - Exercise price $8.68: Options Exercisable 02/07/2004 - 9,166; Options Exercisable 02/07/2005 - 9,167; Options Exercisable 02/07/2006 - 9,166; and Options Exercisable 02/07/2007 - 9,167.

F7: Options Vesting Schedule - Exercise price $15.02: Options Exercisable 02/06/2005 - 8,333; Options Exercisable 02/06/2006 - 8,333; Options Exercisable 02/06/2007 - 8,333 and Options Exercisable 01/01/2008 -8,333.

F8: Options Vesting Schedule - Exercise price $20.26: Options Exercisable 02/04/2006 - 8,333; Options Exercisable 02/04/2007 - 8,333; and Options Exercisable 01/01/2008 -16,666.

F9: Options Vesting Schedule - Exercise price $27.06: Options Exercisable 02/03/2007 - 8,541; and Options Exercisable 01/01/2008 - 25,625.

F10: Options Vesting Schedule for Options Granted 02/12/2008 - Exercise price $28.85: Options Exercisable 02/12/2009 - 6,500; Options Exercisable 02/12/2010 - 6,500; Options Exercisable 02/12/2011 - 7,000.

F11: Restricted share units accrued under a Company plan to be settled in cash following Reporting Person's retirement.

F12: On 11/16/2009, Form 4 overstated restricted share units by 1437 units. Amount has been corrected.