Forestar Group Inc. — Director's Dealing 2012

Oct 3, 2012

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Forestar Group Inc. (FOR)
CIK: 0001406587
Period of Report: 2012-09-30

Reporting Person: Knight Craig A (Chief RE Investment Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2012-09-30	Common Stock	D	7753	$0.00	Disposed	56214	Direct
2012-09-30	Common Stock	D	7491	$0.00	Disposed	48723	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2012-09-30	Restricted Share Units	$	D	9101	Disposed		Common Stock (9101)	Direct
2012-09-30	Restricted Share Units	$	D	4662	Disposed		Common Stock (2331)	Direct
2012-09-30	Restricted Share Units	$	D	12104	Disposed		Common Stock (12104)	Direct
2012-09-30	Performance Units	$	D	14065	Disposed	2014-02-08	Common Stock (14065)	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 (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
Option (right to buy)	$17.80	2020-02-09	Common Stock (15367)	15367	Direct
Option (right to buy)	$18.59	2021-02-08	Common Stock (29674)	29674	Direct
Option (right to buy)	$16.11	2022-02-14	Common Stock (26824)	26824	Direct
Stock Appreciation Right	$9.29	2019-02-10	Common Stock (78807)	78807	Direct
Stock Appreciation Right	$17.80	2020-02-09	Common Stock (18040)	18040	Direct

Footnotes

F1: Forfeited upon separation from service due to retirement.

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 of $15.02: Options Exercisable 02/06/2007 - 1,250; Options Exercisable 02/06/2008 - 416.

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 $20.26: Options Exercisable 02/04/2007 - 833; Options Exercisable 02/04/2008 - 416; Options Exercisable 02/04/2009 - 416.

F6: 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.

F7: 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.

F8: 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.

F9: Vesting accelerated upon separation from service due to retirement.

F10: 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.

F11: Vesting schedule for Options granted 02/9/2010 - Exercise price is $17.80: Options Exercisable 02/9/2011 - 3,841; Options Exercisable 02/9/2012 - 3,842; Options Exercisable 02/9/2013 - 3,842; and Options Exercisable 02/9/2014 - 3,842.

F12: Vesting schedule for Options granted 02/8/2011 - Exercise price is $18.59: Options Exercisable 02/8/2012 - 7,418; Options Exercisable 02/8/2013 - 7,419; Options Exercisable 02/8/2014 - 7,418; and Options Exercisable 02/8/2015 - 7,419.

F13: Vesting schedule for Options granted 02/14/2012 - Exercise price is $16.11: Options Exercisable 02/14/2013 - 6,706; Options Exercisable 02/14/2014 - 6,706; Options Exercisable 02/14/2015 - 6,706; and Options Exercisable 02/14/2016 - 6,706.

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: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/9/2010 - Exercise price is $17.80: SARs Exercisable 02/9/2011 - 4,510; SARs Exercisable 02/9/2012 - 4,510; SARs Exercisable 02/9/2013 - 4,510; and SARs Exercisable 02/9/2014 - 4,510. 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: 2,331 on 2/8/2012; 2,331 on 2/8/2013; 2,331 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: 4,035 on 2/14/2013; 4,034 on 2/14/2014; 4,035 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.