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 OF SECURITIES
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
                      

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 Relationship Management
(Last)          (First)          (Middle)

3. Date of Earliest Transaction (MM/DD/YYYY)

3/1/2007
(Street)

 
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

3/2/2007 
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. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. 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

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. 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 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 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   $3.75   (1)                 3/1/2001   (1) 3/1/2009   Cornerstone Bancshares, Inc.   22000   (1)   22000   D    
stock options   $3.25   (1)                 3/1/2002   (1) 3/1/2010   Cornerstone Bancshares, Inc.   22000   (1)   22000   D    
stock options   $3.25   (1)                 3/1/2003   (1) 3/1/2011   Cornerstone Bancshares, Inc.   20400   (1)   20400   D    
stock options   $3.63   (1)                 5/1/2004   (1) 5/1/2012   Cornerstone Bancshares, Inc.   20000   (1)   20000   D    
stock options   $3.63   (1)                 3/1/2005   (1) 3/1/2013   Cornerstone Bancshares, Inc.   22000   (1)   22000   D    
stock options   $5.44                   3/1/2006   (1) 3/1/2014   Cornerstone Bancshares, Inc.   26000   (1)   26000   D    
stock options   $9.23   (1)                 3/1/2007   (1) 3/1/2015   Cornerstone Bancshares, Inc.   14000   (1)   14000   D    

Explanation of Responses:
(1)  The original Form 4 inadvertently and incorrectly grouped seven years of stock option grants with an average exercise price of 4.39. Therefore, this amended Form 4 has been filed to reflect the deletion of the first line item reported in Table II of the original Form 4, and to replace such line item with information specific to each of those grants as set forth in this amended Form 4.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
LEE JERRY D

 
X
EVP Relationship Management

Signatures
/s/ Jerry Lee 3/6/2007
** 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).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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