Forestar Group Inc. — Director's Dealing 2013

May 14, 2013

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Forestar Group Inc. (FOR)
CIK: 0001406587
Period of Report: 2013-05-10

Reporting Person: Jehl Charles D (Chief Accounting Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2013-05-10	Common Stock	M	19702	$9.29	Acquired	51101	Direct
2013-05-10	Common Stock	D	19702	$24.12	Disposed	31399	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2013-05-10	Stock Appreciation Right	$9.29	M	19702	Disposed	2019-02-10	Common Stock (19702)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option (right to buy)	$9.83	2013-08-01	Common Stock (166)	166	Direct
Option (right to buy)	$15.02	2014-02-06	Common Stock (266)	266	Direct
Option (right to buy)	$20.26	2015-02-04	Common Stock (400)	400	Direct
Option (right to buy)	$27.06	2016-02-03	Common Stock (1708)	1708	Direct
Option (right to buy)	$30.56	2017-02-02	Common Stock (1708)	1708	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
Option (right to buy)	$16.11	2022-02-14	Common Stock (22532)	22532	Direct
Option (right to buy)	$18.70	2023-02-12	Common Stock (19493)	19493	Direct
Stock Appreciation Right	$17.80	2020-02-09	Common Stock (12628)	12628	Direct
Restricted Share Units	$		Common Stock (1076)	1076	Direct
Restricted Share Units	$		Common Stock (2173)	4345	Direct
Restricted Share Units	$		Common Stock (4941)	4941	Direct
Performance Units	$	2014-02-08	Common Stock (9845)	9845	Direct
Performance Units	$	2015-02-14	Common Stock (11218)	11218	Direct
Performance Units	$	2016-02-12	Common Stock (9485)	9485	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 $9.83: Options Exercisable 08/01/2007 - 166.

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 of $15.02: Options Exercisable 02/06/2007 - 133; Options Exercisable 02/06/2008 - 133.

F5: Options Vesting Schedule - Exercise price of $20.26: Options Exercisable 02/04/2007 - 133; Options Exercisable 02/04/2008 - 133; Options Exercisable 02/04/2009 - 134.

F6: Options Vesting Schedule - Exercise price of $27.06: Options Exercisable 02/03/2007 - 427; Options Exercisable 02/03/2008 - 427; Options Exercisable 02/03/2009 - 427; and Options Exercisable 02/03/2010 - 427.

F7: Options Vesting Schedule - Exercise price of $30.56: Options Exercisable 02/02/2008 - 427; Options Exercisable 02/02/2009 - 427; Options Exercisable 02/02/2010 - 427; and Options Exercisable 02/02/2011 - 427.

F8: 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.

F9: 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.

F10: 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.

F11: 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.

F12: Vesting schedule for Options granted 02/14/2012 - Exercise price is $16.11: Options Exercisable 02/14/2013 - 5,633; Options Exercisable 02/14/2014 - 5,633; Options Exercisable 02/14/2015 - 5,633; and Options Exercisable 02/14/2016 - 5,633.

F13: Vesting schedule for Options granted 02/12/2013 - Exercise price is $18.70: Options Exercisable 02/12/2014 - 4,873; Options Exercisable 02/12/2015 - 4,873; Options Exercisable 02/12/2016 - 4,873; and Options Exercisable 02/12/2017 - 4,874.

F14: 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.

F15: 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.

F16: Restricted share units granted on 2/8/2011 will vest as follows: 1,076 on 2/8/2012; 1,076 on 2/8/2013; 1,076 on 2/8/2014. Restricted share units will be settled for cash based on the fair market value on vesting date.

F17: Restricted share units granted on 2/14/2012 will vest as follows: 2,173 on 2/14/2013; 2,172 on 2/14/2014; 2,173 on 2/14/2015. Restricted share units will be settled for cash based on the fair market value on vesting date.

F18: Restricted share units granted on 02/12/2013 will vest as follows: 1,647 on 02/12/2014; 1,647 on 02/12/2015; 1,647 on 02/12/2016. 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.