Forestar Group Inc. — Director's Dealing 2012

Sep 17, 2012

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Forestar Group Inc. (FOR)
CIK: 0001406587
Period of Report: 2012-09-14

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2012-09-14	Common Stock	M	1666	$8.68	Acquired	118264	Direct
2012-09-14	Common Stock	F	1117	$18.05	Disposed	117147	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2012-09-14	Option (right to buy)	$8.68	M	1666	Disposed	2013-02-07	Common Stock (1666)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
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
Option (right to buy)	$16.11	2022-02-14	Common Stock (59013)	59013	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 (18961)	18961	Direct
Restricted Share Units	$		Common Stock (2690)	5379	Direct
Restricted Share Units	$		Common Stock (24209)	24209	Direct
Performance Units	$	2014-02-08	Common Stock (25785)	25785	Direct
Performance Units	$	2015-02-14	Common Stock (29380)	29380	Direct

Footnotes

F1: Reporting Person acquired additional shares by swapping shares already owned, resulting in a net increase in shares.

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 $8.68: Options Exercisable 02/07/2007 - 1,666.

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 - 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 Options granted 02/14/2012 - Exercise price is $16.11: Options Exercisable 02/14/2013 - 14,753; Options Exercisable 02/14/2014 - 14,753; Options Exercisable 02/14/2015 - 14,753; and Options Exercisable 02/14/2016 - 14,754.

F14: 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.

F15: 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.

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: Restricted share units granted on 2/14/2012 will vest as follows: 8,070 on 2/14/2013; 8,069 on 2/14/2014; 8,070 on 2/14/2015. Restricted share units will be settled for cash based on the fair market value on vesting date.

F19: Number of units received upon vesting will vary depending upon performance of Company stock over the performance period.