SMARTFINANCIAL INC. — Director's Dealing 2009

Mar 3, 2009

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: CORNERSTONE BANCSHARES INC (CSBQ)
CIK: 0001038773
Period of Report: 2009-03-01

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

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2009-03-01	Stock Options	$3.6	A	10000	Acquired	2019-03-01	Cornerstone Bancshares, Inc. (10000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	117000	Direct
Common Stock	3000	Indirect
Common Stock	3000	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Options	$3.25	2010-03-01	Cornerstone Bancshares, Inc. (22000)	22000	Direct
Stock Options	$3.25	2011-03-01	Cornerstone Bancshares, Inc. (20400)	42400	Direct
Stock Options	$3.63	2012-05-01	Cornerstone Bancshares, Inc. (20000)	62400	Direct
Stock Options	$3.63	2013-03-01	Cornerstone Bancshares, Inc. (22000)	84400	Direct
Stock Options	$5.44	2014-03-01	Cornerstone Bancshares, Inc. (26000)	110400	Direct
Stock Options	$9.23	2015-03-01	Cornerstone Bancshares, Inc. (18000)	128400	Direct
Stock Options	$13.25	2016-03-01	Cornerstone Bancshares, Inc. (13000)	141400	Direct
Stock Options	$15.25	2017-03-01	Cornerstone Bancshares, Inc. (6500)	147900	Direct
Stock Options	$7.99	2018-03-01	Cornerstone Bancshares, Inc. (8500)	156400	Direct

Footnotes

F1: The exercise date is determined by the following vesting schedule: 30% after the 2nd anniversary date, 60% after the 3rd anniversary date, and 100% after the 4th anniversary date.