SMARTFINANCIAL INC. — Director's Dealing 2008

Mar 3, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: CORNERSTONE BANCSHARES INC (CSBQ)
CIK: 0001038773
Period of Report: 2008-03-01

Reporting Person: JONES GREGORY B (Director, Chairman & CEO)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-03-01	Stock Options	$7.99	A	6300	Acquired	2008-03-01	Cornerstone Bancshares, Inc. (6300)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	29400	Direct
Common Stock	65000	Indirect
Common Stock	5600	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Options	$3.25	2010-03-01	Cornerstone Bancshares, Inc. (4000)	4000	Direct
Stock Options	$3.25	2011-03-01	Cornerstone Bancshares, Inc. (20400)	24400	Direct
Stock Options	$3.63	2012-03-01	Cornerstone Bancshares, Inc. (32000)	56400	Direct
Stock Options	$3.63	2013-03-01	Cornerstone Bancshares, Inc. (34000)	90400	Direct
Stock Options	$5.44	2014-03-01	Cornerstone Bancshares, Inc. (34800)	125200	Direct
Stock Options	$9.23	2015-03-01	Cornerstone Bancshares, Inc. (18000)	143200	Direct
Stock Options	$13.25	2016-03-01	Cornerstone Bancshares, Inc. (13000)	156200	Direct
Stock Options	$15.25	2017-03-01	Cornerstone Bancshares, Inc. (7500)	163700	Direct

Footnotes

F1: The exercise date is determined by the following vesting schedule: 30% after the 2nd anniversary date, 30% after the 3rd anniversary date and 40% after the 4th anniversary date.