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Forestar Group Inc. Director's Dealing 2011

Feb 15, 2011

32005_dirs_2011-02-15_6dcf9410-a7c8-48af-bf98-7e8be49bdfb8.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: 2011-02-12

Reporting Person: DeCosmo James M (Director, CEO - President)

Non-Derivative Transactions

Date Security Code Shares Price A/D Holdings After Ownership
2011-02-12 Common Stock F 7512 $18.86 Disposed 116157 Direct

Holdings (Derivative)

Security Exercise Price Expiration Underlying Shares Ownership
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
Option (right to buy) $17.80 2020-02-09 Common Stock (32016) 32016 Direct
Option (right to buy) $18.59 2021-02-08 Common Stock (54402) 54402 Direct
Stock Appreciation Right $9.29 2019-02-10 Common Stock (131345) 131345 Direct
Stock Appreciation Right $17.80 2020-02-09 Common Stock (37584) 37584 Direct
Restricted Share Units $ Common Stock (40366) 40366 Direct
Restricted Share Units $ Common Stock (18961) 18961 Direct
Restricted Share Units $ Common Stock (8069) 8069 Direct
Performance Units $ 2014-02-08 Common Stock (25785) 25785 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: Options Vesting Schedule - Exercise price is $13.26: Options Exercisable 02/01/2006 - 2,000.

F3: Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off on or around December 28, 2007.

F4: Options Vesting Schedule - Exercise price is $8.68: Options Exercisable 02/07/2007 - 1,666.

F5: Options Vesting Schedule - Exercise price of $15.02: Options Exercisable 02/06/2007 - 1,250; Options Exercisable 02/06/2008 - 416.

F6: 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.

F7: 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.

F8: 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.

F9: 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.

F10: 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.

F11: 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.

F12: Vesting schedule for Options granted 02/8/2011 - Exercise price is $18.59: Options Exercisable 02/8/2012 - 13,600; Options Exercisable 02/8/2013 - 13,601; Options Exercisable 02/8/2014 - 13,600; and Options Exercisable 02/8/2015 - 13,601.

F13: 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.

F14: 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.

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.

F16: 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.

F17: Restricted share units granted on 2/8/2011 will vest as follows: 2,690 on 2/8/2012; 2,689 on 2/8/2013; 2,690 on 2/8/2014. Restricted share units will be settled for cash based on the fair market value on vesting date.

F18: Number of units received upon vesting will vary depending upon performance of Company stock over the performance period.