Forestar Group Inc. — Director's Dealing 2013

Sep 30, 2013

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Forestar Group Inc. (FOR)
CIK: 0001406587
Period of Report: 2013-09-26

Reporting Person: Smith Flavious J. Jr. (Chief Oil and Gas Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2013-09-26	Common Stock	M	12364	$18.59	Acquired	52125	Direct
2013-09-26	Common Stock	F	11237	$22.05	Disposed	40891	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2013-09-26	Option (right to buy)	$18.59	M	12364	Disposed	2021-02-08	Common Stock (12364)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option (right to buy)	$17.80	2020-02-09	Common Stock (9604)	3202	Direct
Option (right to buy)	$16.11	2022-02-14	Common Stock (10461)	31384	Direct
Option (right to buy)	$18.70	2023-02-12	Common Stock (34113)	34113	Direct
Stock Appreciation Right	$17.80	2020-02-09	Common Stock (11274)	3759	Direct
Restricted Share Units	$		Common Stock (2062)	2062	Direct
Restricted Share Units	$		Common Stock (7553)	15104	Direct
Restricted Share Units	$		Common Stock (8066)	8066	Direct
Performance Units	$	2014-02-08	Common Stock (11721)	11721	Direct
Performance Units	$	2015-02-14	Common Stock (20833)	20833	Direct
Performance Units	$	2016-02-12	Common Stock (16599)	16599	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: Vesting schedule for Options granted 02/9/2010 - Exercise price is $17.80: Options Exercisable 02/9/2011 - 3,201; Options Exercisable 02/9/2012 - 3,202; Options Exercisable 02/9/2013 - 3,201; and Options Exercisable 02/9/2014 - 3,202.

F3: Vesting schedule for Options granted 02/8/2011 - Exercise price is $18.59: Options Exercisable 02/8/2012 - 6,182; Options Exercisable 02/8/2013 - 6,182; Options Exercisable 02/8/2014 - 6,182; and Options Exercisable 02/8/2015 - 6,182.

F4: Vesting schedule for Options granted 02/14/2012 - Exercise price is $16.11: Options Exercisable 02/14/2013 - 10,461; Options Exercisable 02/14/2014 - 10,461; Options Exercisable 02/14/2015 - 10,461; and Options Exercisable 02/14/2016 - 10,462.

F5: Vesting schedule for Options granted 02/12/2013 - Exercise price is $18.70: Options Exercisable 02/12/2014 - 8,528; Options Exercisable 02/12/2015 - 8,528; Options Exercisable 02/12/2016 - 8,528; and Options Exercisable 02/12/2017 - 8,529.

F6: Vesting schedule for Stock Appreciation Rights (SARs) granted 02/9/2010 - Exercise price is $17.80: SARs Exercisable 02/9/2011 - 3,758; SARs Exercisable 02/9/2012 - 3,758; SARs Exercisable 02/9/2013 - 3,758; and SARs Exercisable 02/9/2014 - 3,759. SARs will be settled for cash.

F7: Restricted share units granted on 2/8/2011 will vest as follows: 2,062 on 2/8/2012; 2,062 on 2/8/2013; 2,062 on 2/8/2014. Restricted share units will be settled for cash based on the fair market value on vesting date.

F8: Restricted share units granted on 2/14/2012 will vest as follows: 7,553 on 2/14/2013; 7,552 on 2/14/2014; 7,552 on 2/14/2015. Restricted share units will be settled for cash based on the fair market value on vesting date.

F9: Restricted share units granted on 02/12/2013 will vest as follows: 2,689 on 02/12/2014; 2,688 on 02/12/2015; 2,689 on 02/12/2016. Restricted share units will be settled for cash based on the fair market value on vesting date.

F10: Number of units received upon vesting will vary depending upon performance of Company stock over the performance period.