X0201 4 2004-01-02 0 0001079385 CORNERSTONE BANCORP INC cbn 0001239388 FORGOTSON MERRILL J 7 BAYBERRY LANE WESTPORT CT 06880 1 1 0 0 Chairman and CEO Common Stock 2004-01-02 2004-01-02 4 A 0 1500 20.3 A 7700 D Common Stock 1230.451 I By Wife as custodian for minor Common Stock 1909.094 I By Wife Common Stock 60 I By minor child Employee Stock Option - right to buy 13.636 2001-05-29 2011-05-29 Common Stock 22000 22000 D Employee Stock Option - right to buy 14.545 2002-01-02 2012-01-02 Common Stock 2200 24200 D Employee Stock Option - right to buy 20.3 2004-01-02 2004-01-02 4 A 0 2000 20.3 A 2004-01-02 2014-01-02 Common Stock 2000 26200 D The reporting person received the restricted stock grant which vests pursuant to the vesting schedule found in the 2001 Restricted Stock Plan The reporting preson received 28.283 shares of common stock as a result of participation in the Bancorp's plan for reinvestment of dividends. The reporting person received 43.884 shares of common stock as a result of participation in the Bancorp's plan for reinvestment of dividends. Leigh A. Hardisty 2004-01-06