UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


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                                    FORM 8-K

                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

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       Date of Report (Date of earliest event reported): August 11, 2010


                               CORNERSTONE BANCORP

Incorporated under the     Commission File No. 000-51950     I.R.S. Employer
laws of South Carolina                                      Identification No.
                                                              57-1077978

                              1670 East Main Street
                          Easley, South Carolina 29640

                                 (864) 306-1444

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)
[ ]  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)
[ ]  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))




Item 3.02  Unregistered Sales of Equity Securities

         The  Registrant  sold 475 shares of its newly  authorized 8% Cumulative
Perpetual  Preferred  Stock,  Series A, on August  11,  2010,  for an  aggregate
offering price of $475,000. The sale of shares has not been registered under the
Securities Act of 1933 in reliance on the exemption  provided by Section 4(2) of
the Act and 17 C.F.R. Section 230.506 thereunder,  on the grounds that no public
offering is involved  because the shares are being  offered  only to  accredited
investors (as defined in 17 C.F.R.  Section  230.501(a)) and to not more than 35
investors who are not accredited.









I
                                   SIGNATURE

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, hereunto duly authorized.

                                  CORNERSTONE BANCORP
                                  (Registrant)



Date: August 11, 2010              By: J. Rodger Anthony
                                      ------------------------------------------
                                      J. Rodger Anthony
                                      Chief Executive Officer