SEC FORM 4

SEC Form 4

FORM 4

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
or Section 30(h) of the Investment Company Act of 1940

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

1. Name and Address of Reporting Person^*

OBRIEN MICHAEL R

(Last)

(First)

(Middle)

6100 51ST STREET S

(Street)

ST PETERSBURG

33715

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
SMART BALANCE, INC. [ SMBL ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
12/14/2010

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	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)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	12/14/2010		P		2,300	A	$4.35	56,900	I	Held by Bayway Investment Fund.⁽¹⁾⁽²⁾
Common Stock	12/14/2010		P		2,300	A	$4.35	26,300	I	Held by Hawkeye Irrevocable Trust.⁽¹⁾⁽³⁾
Common Stock	12/14/2010		P		2,300	A	$4.35	25,900	I	Held by Jayhawk Irrevocable Trust.⁽¹⁾⁽⁴⁾
Common Stock	12/14/2010		P		2,300	A	$4.36	7,300	I	Held by Michael R. and Dianne C. O'Brien Trust⁽¹⁾
Common Stock	12/14/2010		P		2,300	A	$4.35	7,300	I	Held by Megan E. O'Brien Trust UTMA.⁽¹⁾
Common Stock								1,000	I	Held by Heather Yeatman Holmstrom Irrevocable Trust.⁽¹⁾
Common Stock								27,396	I	Held by Aragon Trading Company, L.P.⁽¹⁾
Common Stock								20,000	I	Held by Shorecrest Investment Fund.⁽¹⁾⁽⁵⁾
Common Stock								20,000	I	Held by Allick Irrevocable Trust.⁽¹⁾
Common Stock								7,000	I	Held by Yeatman Grandchildren Irrevocable Trust.⁽¹⁾
Common Stock								6,000	I	Held by John Brian Yeatman Irrevocable Trust.⁽¹⁾
Common Stock								3,000	I	Held by Shorecrest Investment Fund.⁽¹⁾⁽⁶⁾
Common Stock								3,000	I	Held by Shannon Patrick O'Brien Trust.⁽¹⁾
Common Stock								5,000	I	Held by Michael R. O'Brien Trust.⁽¹⁾
Common Stock								5,000	I	Held by Dianne C. O'Brien Trust.⁽¹⁾
Common Stock								5,000	I	Held by Michael R. O'Brien Rollover IRA.⁽¹⁾
Common Stock								39,878	D

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 (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	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 (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (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: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)

Explanation of Responses:

1. Mr. O'Brien disclaims beneficial ownership over these shares, except to the extent of his pecuniary interest therein.

2. Mr. O'Brien has sole voting and investment power over these shares.

3. Mr. O'Brien is the trustee of Hawkeye Irrevocable Trust, of which his wife, Dianne C. O'Brien, is beneficiary. Mr. O'Brien has sole voting and investment control over the shares held by the trust.

4. Mr. O'Brien is the beneficiary of Jayhawk Irrevocable Trust and has investment control over the shares held by the trust.

5. A charitable remainder trust established for the benefit of Mr. O'Brien's son, Shannon P. O'Brien.

6. A charitable remainder trust established for the benefit of Mr. O'Brien's daughter, Megan E. O'Brien

	/s/ Michael R. O'Brien	12/15/2010
	** Signature of Reporting Person	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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