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SMARTFINANCIAL INC. Director's Dealing 2008

Dec 12, 2008

32627_dirs_2008-12-11_96b75c09-e9dc-40e6-bb7e-73a23365b71d.zip

Director's Dealing

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SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: CORNERSTONE BANCSHARES INC (CSBQ)
CIK: 0001038773
Period of Report: 2008-12-09

Reporting Person: HUGHES NATHANIEL F (Director, President & Treasurer)

Non-Derivative Transactions

Date Security Code Shares Price A/D Holdings After Ownership
2008-12-09 Common Stock M 22000 $3.75 Acquired 117000 Direct

Derivative Transactions

Date Security Exercise Price Code Shares A/D Expiration Underlying Ownership
2008-12-09 Employee Stock Option (right to buy) $3.75 M 22000 Disposed 2009-03-01 Common Stock (22000) Direct

Holdings (Non-Derivative)

Security Shares Ownership
Common Stock 3000 Indirect
Common Stock 3000 Indirect

Footnotes

F1: The option was granted on March 1, 1999 with the following vesting schedule: 30% on March 1, 2001, 30% on March 1, 2002 and 40% on March 1, 2003.