Sec Form 4 Filing - LEE JERRY D @ CORNERSTONE BANCSHARES INC - 2009-03-01

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person LEE JERRY D 2. Issuer Name and Ticker or Trading Symbol CORNERSTONE BANCSHARES INC [ CSBQ] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) X __ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) EVP & Senior Loan Admin. (Last) (First) (Middle) 3. Date of Earliest Transaction (MM/DD/YY) 03/01/2009 (Street) 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 5,000 D Common Stock 50,500 I IRA Account Common Stock 38,000 I Spouse's IRA Account Common Stock 2,400 I Custodian for Minor Children

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Options $ 3.25 03/01/2002( 1 ) 03/01/2010 Cornerstone Bancshares, Inc. 22,000 22,000 D Stock Options $ 3.25 03/01/2003( 1 ) 03/01/2011 Cornerstone Bancshares, Inc. 20,400 42,400 D Stock Options $ 3.63 05/01/2004( 1 ) 05/01/2012 Cornerstone Bancshares, Inc. 20,000 62,400 D Stock Options $ 3.63 03/01/2005( 1 ) 03/01/2013 Cornerstone Bancshares, Inc. 22,000 84,400 D Stock Options $ 5.44 03/01/2006( 1 ) 03/01/2014 Cornerstone Bancshares, Inc. 26,000 110,400 D Stock Options $ 9.23 03/01/2007( 1 ) 03/01/2015 Cornerstone Bancshares, Inc. 14,000 124,400 D Stock Options $ 13.25 03/01/2008( 1 ) 03/01/2016 Cornerstone Bancshares, Inc. 13,000 137,400 D Stock Options $ 15.25 03/01/2009( 1 ) 03/01/2017 Cornerstone Bancshares, Inc. 6,500 143,900 D Stock Options $ 7.99 03/01/2010( 1 ) 03/01/2018 Cornerstone Bancshares, Inc. 8,500 152,400 D Stock Options $ 3.6 03/01/2009 03/01/2009 A 10,000 03/01/2011( 1 ) 03/01/2019 Cornerstone Bancshares, Inc. 10,000 $ 0 162,400 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other LEE JERRY D X EVP & Senior Loan Admin. Signatures Frank Hughes, Attorney in Fact 03/03/2009 Signature of Reporting Person Date

Explanation of Responses:

( 1 )The exercise date is determined by the following vesting schedule: 30% on the 2nd anniversary date, 60% on th e 3rd anniversary date and 100% on the 4th anniversary date.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

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