Extract to table

3 — Board Designation Rights Under the Amended and Restated Stockholders' Agreement, which will become effective upon the closing of the initial public offering (a draft of which is attached hereto as Exhibit K), the following board designation rights have been established: Pinnacle Vista Designation Rights: Pinnacle Vista Capital Partners III, LP has the right to designate a specified number of directors to the Board of Directors based on its ownership of the Company's outstanding Common Stock, subject to the following step-down thresholds: (a) For so long as Pinnacle Vista holds 40% or more of the outstanding Common Stock, Pinnacle Vista shall have the right to designate three (3) directors; (b) For so long as Pinnacle Vista holds 30% or more but less than 40% of the outstanding Common Stock, Pinnacle Vista shall have the right to designate two (2) directors; (c) For so long as Pinnacle Vista holds 15% or more but less than 30% of the outstanding Common Stock, Pinnacle Vista shall have the right to designate one (1) director; and (d) If Pinnacle Vista holds less than 15% of the outstanding Common Stock, Pinnacle Vista shall have no further board designation rights