Step three:

Select round rectangle tool from the main tool bar and set the radius setting to 20px.

Set your foreground color to white. In a new layer draw a white round rectangle on the center of the black and gradient space.

Add the following layer styles: Drop Shadow.

Set layer's blending mode to Darken.



Step four:

Duplicate the round rectangle from last step and nudge it a little to the bottom and set the layer's opacity level to 33%.