Forestar Group Inc. — Director's Dealing 2012

Feb 10, 2012

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Forestar Group Inc. (FOR)
CIK: 0001406587
Period of Report: 2012-02-08

Reporting Person: Nines Christopher L (Chief Financial Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2012-02-08	Common Stock	M	1524	$0.00	Acquired	45869	Direct
2012-02-08	Common Stock	D	1524	$0.00	Disposed	44345	Direct
2012-02-09	Common Stock	F	1747	$16.75	Disposed	42598	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2012-02-08	Restricted Share Units	$	M	1524	Disposed		Common Stock (1524)	Direct

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
Option (right to buy)	$17.80	2020-02-09	Common Stock (10757)	10757	Direct
Option (right to buy)	$18.59	2021-02-08	Common Stock (20772)	20772	Direct
Stock Appreciation Right	$9.29	2019-02-10	Common Stock (39404)	39404	Direct
Stock Appreciation Right	$17.80	2020-02-09	Common Stock (12628)	12628	Direct
Restricted Share Units	$		Common Stock (12110)	12110	Direct
Restricted Share Units	$		Common Stock (6371)	6371	Direct
Performance Units	$	2014-02-08	Common Stock (9845)	9845	Direct

Footnotes

F1: Restricted stock units vested 2/8/2012. Restricted stock units are being settled for cash based on the fair market value on 2/8/2012.

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: Options Vesting Schedule - Exercise price is $9.83: Options Exercisable 08/01/2007 - 333.

F4: Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off on or around December 28, 2007.

F5: Options Vesting Schedule - Exercise price of $15.02: Options Exercisable 02/06/2007 - 416; Options Exercisable 02/06/2008 - 417.

F6: 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.

F7: 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.

F8: 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.

F9: 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.

F10: 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.

F11: Vesting schedule for Options granted 02/9/2010 - Exercise price is $17.80: Options Exercisable 02/9/2011 - 2,689; Options Exercisable 02/9/2012 - 2,689; Options Exercisable 02/9/2013 - 2,689; and Options Exercisable 02/9/2014 - 2,690.

F12: Vesting schedule for Options granted 02/8/2011 - Exercise price is $18.59: Options Exercisable 02/8/2012 - 5,193; Options Exercisable 02/8/2013 - 5,193; Options Exercisable 02/8/2014 - 5,193; and Options Exercisable 02/8/2015 - 5,193.

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: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/9/2010 - Exercise price is $17.80: SARs Exercisable 02/9/2011 - 3,157; SARs Exercisable 02/9/2012 - 3,157; SARs Exercisable 02/9/2013 - 3,157; and SARs Exercisable 02/9/2014 - 3,157. 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: 1,524 on 2/8/2012; 1,524 on 2/8/2013; 1,524 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.