X0202 4 2007-07-27 0 0001038773 CORNERSTONE BANCSHARES INC csbq 0001217555 HUGHES NATHANIEL F 108 CRANDALL AVE LOOKOUT MOUNTAIN TN 37350 1 1 0 0 President & COO Common Stock 90000 D Common Stock 3000 I Custodian for minor children Common Stock 2007-07-26 2007-07-31 4 P 0 5000 11.5 A 95000 D Stock Options 3.75 2001-03-01 2009-03-01 Cornerstone Bancshares, Inc. 22000 22000 D Stock Options 3.25 2002-03-01 2010-03-01 Cornerstone Bancshares, Inc. 22000 44000 D Stock Options 3.25 2003-03-01 2011-03-01 Cornerstone Bancshares, Inc. 20400 64400 D Stock Options 3.63 2004-05-01 2012-05-01 Cornerstone Bancshares, Inc. 20000 84400 D Stock Options 3.63 2005-03-01 2013-03-01 Cornerstone Bancshares, Inc. 22000 106400 D Stock Options 5.44 2006-03-01 2014-03-01 Cornerstone Bancshares, Inc. 26000 132400 D Stock Options 9.23 2007-03-01 2015-03-01 Cornerstone Bancshares, Inc. 18000 150400 D Stock Option 13.25 2008-03-01 2016-03-01 Cornerstone Bancshares, Inc. 13000 163400 D Stock Option 15.24 2009-03-01 2017-03-01 Cornerstone Bancshares, Inc. 6500 169900 D Nathaniel F. Hughes 2007-07-27