Document:

BADGER METER, INC.

2008 RESTRICTED STOCK PLAN 

ARTICLE 1. 
PURPOSE
AND DURATION 

                Section
1.1   Purpose.   The Badger Meter, Inc. 2008 Restricted Stock Plan has two complementary
purposes: (a) to promote the success of the Company by providing incentives to the
officers and other key employees of the Company and its subsidiaries that will link their
personal interests to the long-term financial success of the Company and to growth in
value; and (b) to permit the Company and its subsidiaries to attract, motivate and retain
experienced and knowledgeable employees upon whose judgment, interest, and special
efforts the successful conduct of the Company’s operations is largely dependent.  

                Section
1.2    Duration.   Subject to the approval of the Company’s shareholders at the
Company’s 2008 annual meeting of shareholders, the Plan will become effective on May
1, 2008. The Plan shall continue in effect until the earliest of: (a) April 30, 2018, (b)
the date the Board terminates the Plan pursuant to Article 9 herein, or (c) the date all
Shares reserved for issuance under the Plan have been issued.  

ARTICLE 2. 
DEFINITIONS AND
CONSTRUCTION  

                Section
2.1    Definitions.   Wherever used in the Plan, the following terms shall have the
meanings set forth below and, when the meaning is intended, the initial letter of the
word is capitalized:  

                (a)     
               “Affiliate” shall have the meaning ascribed to such term in Rule
12b-2                under the Exchange Act.  

                (b)     
               “Award” means a grant of Restricted Shares.  

                (c)     
               “Beneficial Owner” (or derivatives thereof) shall have the
meaning                ascribed to such term in Rule 13d-3 under the Exchange Act.  

                (d)     
               “Board” means the Board of Directors of the Company.  

                (e)     
               “Cause” means: (1) if the Participant is subject to an
employment                agreement, severance agreement or similar agreement with the
Company or any of                its subsidiaries that contains a definition of “cause”,
such                definition; or (2) otherwise, any of the following as determined by
the                Committee: (a) violation of the provisions of any employment
agreement,                non-competition agreement, confidentiality agreement, or
similar agreement with                the Company or any of its subsidiaries, or the
Company’s or any of its                subsidiaries’ code of ethics, as then in
effect; (b) conduct rising to the                level of gross negligence or willful
misconduct in the course of employment with                the Company or any of its
subsidiaries; (c) commission of an act of dishonesty                or disloyalty
involving the Company or any of its subsidiaries; (d) violation of                any
federal, state or local law in connection with the Participant’s
               employment; or (e) breach of any fiduciary duty to the Company or any of
its                subsidiaries.  

                (f)     
               “Change in Control” means the occurrence of any one of the
following:  

	 	(i) 	any
Person (other than Excluded Persons, as defined below) is or becomes the
               “Beneficial Owner” (as such term is defined in Rule 13d-3 under
the                Exchange Act), directly or indirectly, of securities of the Company
(not                including in the securities beneficially owned by such Person any
securities                acquired directly from the Company or its Affiliates after
January 1, 2008,                pursuant to express authorization by the Board that
refers to this exception and                not including securities of the Company
subject to proxies held by such Person,                but including securities of the
Company subject to exercisable options held by                such Person) representing
15% or more of either the then outstanding shares of                common stock of the
Company or the combined voting power of the Company’s                then
outstanding voting securities. “Excluded Persons” shall mean (A)
               the Company; (B) any subsidiary of the Company; (C) any employee benefit
plan of                the Company or any subsidiary of the Company (collectively, “Employee
               Benefit Plans”); (D) any entity holding securities for or pursuant to
the                terms of any Employee Benefit Plans; (E) any trustee, administrator or
fiduciary                of any Employee Benefit Plans in their capacities as such; (F) an
               underwriter temporarily holding securities pursuant to an offering of such
               securities; (G) a corporation owned, directly or indirectly, by the
               shareholders of the Company in substantially the same proportions as their
               ownership of stock in the Company; and (H) any Person who has reported or
is                required to report their ownership on Schedule 13G under the Exchange
Act (or                any comparable or successor report) or on Schedule 13D under the
Exchange Act                (or any comparable or successor report), which Schedule 13D
does not disclose                pursuant to Item 4 thereto (or any comparable successor
item or section) an                intent, or reserve the right, to engage in a control
transaction, any contested                solicitation for the election of directors or
any of the other actions specified                in Item 4 thereto (or any comparable
successor item or section), who                inadvertently becomes the Beneficial Owner
of 15% or more of either the then                outstanding shares of common stock of
the Company or the combined voting power                of the Company’s then
outstanding voting securities and, within ten                business days of being
requested by the Company to advise it regarding the same,                certifies to the
Company that such Person acquired 15% or more of either the                then
outstanding shares of common stock of the Company or the combined voting
               power of the Company’s then outstanding voting securities
inadvertently and                who or which, together with all Affiliates and
associates, thereafter does not                acquire additional shares of common stock
or voting securities of the Company                while the Beneficial Owner of 15% or
more of either the then outstanding shares                of common stock of the Company
or the combined voting power of the                Company’s then outstanding voting
securities; provided, however, that if                the Person requested to so certify
fails to do so within ten business days or                breaches or violates such
certification, then such Person shall cease to be an                Excluded Person
immediately after such ten business day period or such breach or
               violation; or  

2 

	 	(ii) 	the
following individuals cease for any reason to constitute a majority of the
               number of directors then serving: individuals who, on January 1, 2008,
               constituted the Board and any new director (other than a director whose
initial                assumption of office is in connection with an actual or threatened
election                contest, including but not limited to a consent solicitation,
relating to the                election of directors of the Company, as such terms are
used in former Rule                14a-11 of Regulation 14A under the Exchange Act) whose
appointment or election                by the Board or nomination for election by the
Company’s shareholders was                approved by a vote of at least two-thirds
(2/3) of the directors then still in                office who either were directors on
January 1, 2008, or whose appointment,                election or nomination for election
was previously so approved; or  

	 	(iii) 	the
shareholders of the Company approve a merger, consolidation or share
               exchange of the Company with any other corporation or approve the issuance
of                voting securities of the Company in connection with a merger,
consolidation or                share exchange of the Company in connection with a
merger, consolidation or                share exchange of the Company (or any direct or
indirect subsidiary of the                Company) pursuant to applicable stock exchange
requirements, other than (A) a                merger, consolidation or share exchange
which would result in the voting                securities of the Company outstanding
immediately prior to such merger,                consolidation or share exchange
continuing to represent (either by remaining                outstanding or by being
converted into voting securities of the surviving entity                or any parent
thereof) at least 50% of the combined voting power of the voting
               securities of the Company of such surviving entity or any parent thereof
               outstanding immediately after such merger, consolidation or share
exchange, or                (B) a merger, consolidation or share exchange effected to
implement a                recapitalization of the Company (or similar transaction) in
which no Person                (other than an Excluded Person) is or becomes the
Beneficial Owner, directly or                indirectly, of securities of the Company
(not including in the securities                beneficially owned by such Person any
securities acquired directly from the                Company or its Affiliates after
January 1, 2008 pursuant to express                authorization by the Board that refers
to this exception) representing 15% or                more of either the then outstanding
shares of common stock of the Company or the                combined voting power of the
Company’s then outstanding voting securities;                or  

3 

	 	(iv) 	the
shareholders of the Company approve a plan of complete liquidation or
               dissolution of the Company or an agreement for the sale or disposition by
the                Company of all or substantially all of the Company’s assets (in
one                transaction or a series of related transactions within any period of
24                consecutive months), other than a sale or disposition by the Company of
all or                substantially all of the Company’s assets to an entity at
least 75% of the                combined voting power of the voting securities of which
are owned by Persons in                substantially the same proportions as their
ownership of the Company immediately                prior to such sale.  

                (g)     
               “Code” means the Internal Revenue Code of 1986, as interpreted
by                rules and regulations issued pursuant thereto, all as amended and in
effect from                time to time. Any reference to a specific provision of the
Code shall be deemed                to include reference to any successor provision
thereto.  

                (h)     
               “Committee” means the Corporate Governance Committee of the
Board, or                such other committee appointed by the Board to administer the
Plan pursuant to                Article 3 herein.  

                (i)     
               “Company” means Badger Meter, Inc., a Wisconsin corporation, and
any                successor as provided in Article 12.  

                (j)     
               “Eligible Employee” means a full-time exempt employee of the
Company                or any of its subsidiaries or such other key employees as
determined by the                Committee.  

                (k)     
               “Exchange Act” means the Securities Exchange Act of 1934, as
               interpreted by rules and regulations issued pursuant thereto, all as
amended and                in effect from time to time. Any reference to a specific
provision of the                Exchange Act shall be deemed to include reference to any
successor provision                thereto.  

                (l)     
               “Fair Market Value” means with respect to any property other
than                Shares, such value as is determined by the Committee, and means with
respect to                Shares, (1) the closing price of the Shares as of the date in
question, or, if                no closing price is available on that date, then the
closing price on the                immediately preceding business day on which there is
a closing price, if such                security is listed or admitted for trading on any
domestic national securities                exchange, as officially reported on the
principal securities exchange on which                the Shares are listed; (2) if not
reported as described in clause (1), the                closing sale price of the Shares
as of the date in question, or, if no closing                sale price is available on
that date, then the closing sale price on the                immediately preceding
business day on which there is a closing sale price, as                reported by any
system of automated dissemination of quotations of securities                prices then
in common use, if so quoted; or (3) if not reported as described in                clause
(1) or quoted as described in clause (2), then the Committee shall
               determine in good faith and on a reasonable basis the applicable Fair
Market                Value, which determination shall be conclusive.  

4 

                (m)     
               “Inimical Conduct” means any act or omission that is inimical to
the                best interests of the Company or any of its subsidiaries, as
determined by the                Committee in its sole discretion, including but not
limited to: (1) violation of                the provisions of any employment agreement,
non-competition agreement,                confidentiality agreement, or similar agreement
with the Company or any of its                subsidiaries, or the Company’s or any
of its subsidiaries’ code of                ethics, as then in effect; (2) taking
any steps or doing anything which would                damage or negatively reflect on
the reputation of the Company or any of its                subsidiaries; or (3) failure
to comply with applicable laws relating to trade                secrets, confidential
information or unfair competition.  

                (n)     
               “Participant” means an Eligible Employee who has been granted an
               Award.  

                (o)     
               “Performance Goals” means any goal(s) the Committee establishes
that                relate to one or more of the following with respect to the Company or
any one or                more of its subsidiaries or other business units: net sales;
cost of sales;                gross income; operating income; earnings before interest
and taxes; earnings                before interest, taxes, depreciation and amortization;
income from continuing                operations; net income; basic earnings per share;
diluted earnings per share;                cash flow; net cash provided by operating
activities; net cash provided by                operating activities less net cash used
in investing activities; ratio of debt                to debt plus equity; return on
shareholder equity; return on invested capital;                return on average total
capital employed; return on net assets employed before                interest and taxes;
operating working capital; average accounts receivable                (calculated by
taking the average of accounts receivable at the end of each                month);
average inventories (calculated by taking the average of inventories at
               the end of each month); and economic value added. As to each Performance
Goal,                the relevant measurement of performance shall be computed in
accordance with                generally accepted accounting principles, but, unless
otherwise determined by                the Committee, will exclude the effects of (1)
extraordinary, unusual and/or                non-recurring items of gain or loss; (2)
gains or losses on the disposition of a                business; (3) changes in tax or
accounting regulations or laws; or (4) the                effect of a merger or
acquisition, that in each case the Company identifies in                its audited
financial statements, including footnotes, or the Management’s
               Discussion and Analysis section of the Company’s annual report on
Form                10-K. In the case of Awards that the Committee determines will not be
considered                “performance-based compensation” under Code Section 162(m),
the                Committee may establish other Performance Goals not listed in the
Plan.  

                (p)     
               “Person” shall have the meaning given in Section 3(a)(9) of the
               Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof.  

                (q)     
               “Plan” means this Badger Meter, Inc. 2008 Restricted Stock Plan,
as                from time to time amended and in effect.  

                (r)     
               “Restricted Shares” means Shares that are subject to a
Restriction                Period.  

                (s)     
               “Restriction Period” means the period during which Shares issued
under                the Plan may not be transferred and are subject to a substantial
risk of                forfeiture.  

5 

                (t)     
               “Retirement” means a voluntary termination of employment from
the                Company and its subsidiaries (other than for Cause) in accordance with
a Company                retirement plan or policy.  

                (u)     
               “Securities Act” means the Securities Act of 1933, as
interpreted by                rules and regulations issued pursuant thereto, all as
amended and in effect from                time to time. Any reference to a specific
provision of the Securities Act shall                be deemed to include reference to
any successor provision thereto.  

                (v)     
               “Share” means a share of the common stock, $1 par value, of the
               Company, or such other securities specified in Section 4.4.  

                (w)     
               “Total and Permanent Disability” means the Participant’s
               inability to perform the material duties of his occupation as a result of
a                medically-determinable physical or mental impairment which can be
expected to                result in death or which has lasted or can be expected to last
for a period of                at least 12 months, as determined by the Committee. The
Participant will be                required to submit such medical evidence or to undergo
a medical examination by                a doctor selected by the Committee as the
Committee determines is necessary in                order to make a determination
hereunder.  

                Section
2.2    Construction.   Wherever any words are used in the masculine, they shall be
construed as though they were used in the feminine in all cases where they would so
apply; and wherever any words are use in the singular or the plural, they shall be
construed as though they were used in the plural or the singular, as the case may be, in
all cases where they would so apply. Titles of articles and sections are for general
information only, and the Plan is not to be construed by reference to such items.  

                Section
2.3   Severability.   In the event any provision of
the Plan is held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining parts of the Plan, and the Plan shall be construed and enforced
as if the said illegal or invalid provision had not been included.  

ARTICLE 3. 
ADMINISTRATION  

                Section
3.1   The Committee.   The Plan shall be administered by the Committee. If at any time
the Committee shall cease to exist, then the Plan shall be administered by the Board or
another committee appointed by the Board, and each reference to the Committee herein
shall be deemed to refer to the Board or such committee appointed by the Board.  

                Section
3.2   Authority of the Committee.  In addition to the authority specifically granted to
the Committee in the Plan, and subject to the provisions of the Plan, the Committee shall
have full power and discretionary authority to: (a) select Participants, grant Awards,
and determine the terms and conditions of each such Award, including but not limited to
the Restriction Period and the number of Shares to which the Award will relate; (b)
administer the Plan, including but not limited to the power and authority to construe and
interpret the Plan and any award agreement; (c) correct errors, supply omissions or
reconcile inconsistencies in the terms of the Plan and any award agreement; (d)
establish, amend or waive rules and regulations, and appoint such agents, as it deems
appropriate for the Plan’s administration; and (e) make any other determinations,
including factual determinations, and take any other action as it determines is necessary
or desirable for the Plan’s administration.  

                Notwithstanding
the foregoing, the Committee shall have no authority to act to adversely affect the rights
or benefits granted under any outstanding Award without the consent of the person holding
such Award (other than as specifically provided herein). 

6 

                Section
3.3   Decision Binding.   The Committee’s determination and decisions made pursuant
to the provisions of the Plan and all related orders or resolutions of the Board shall be
final, conclusive and binding on all persons who have an interest in the Plan or an
Award, and such determinations and decisions shall not be reviewable.  

                Section
3.4   Procedures of the Committee.   The Committee’s determinations must be made by
not less than a majority of its members present at the meeting (in person or otherwise)
at which a quorum is present, or by written majority consent, which sets forth the
action, is signed by each member of the Committee and filed with the minutes for
proceedings of the Committee. A majority of the entire Committee shall constitute a
quorum for the transaction of business. Service on the Committee shall constitute service
as a director of the Company so that the Committee members shall be entitled to
indemnification, limitation of liability and reimbursement of expenses with respect to
their Committee services to the same extent that they are entitled under the Company’s
By-laws and Wisconsin law for their services as directors of the Company.  

                Section
3.5    Award Agreements.   The Committee shall evidence the grant of each Award by an
award agreement which shall be signed by an authorized officer of the Company and by the
Participant, and shall contain such terms and conditions as may be approved by the
Committee, subject to the terms of the Plan. Terms and conditions of such Awards need not
be the same in all cases.  

ARTICLE 4.
SHARES
SUBJECT TO THE PLAN; ADJUSTMENTS 

                Section
4.1    Number of Shares.   Subject to adjustment as provided in Section 4.4, the aggregate
number of Shares that may be issued under the Plan shall not exceed One Hundred Thousand
(100,000) Shares.  

                Section
4.2    Lapsed Awards.   If any Award is forfeited or terminated for any reason, the
Restricted Shares subject to such Award that are forfeited shall be available for the
grant of a new Award under the Plan.  

                Section
4.3    Individual Limit.   Subject to adjustment as provided in Section 4.4, no
Participant may be granted Awards during the term of the Plan of more than 20,000
Restricted Shares.  

                Section
4.4    Adjustments in Number of Shares.   In the event that the Board or the Committee, as
the case may be, shall determine that any dividend or other distribution (whether in the
form of cash, Shares, or other property), recapitalization, stock split, reverse split,
reorganization, merger, consolidation, spin-off, combination, repurchase, or share
exchange, or other similar corporate transaction or event, affects the Shares such that
an adjustment is appropriate in order to prevent dilution or enlargement of the rights of
holders of Awards under the Plan, then the Board or the Committee, as the case may be,
shall make such equitable changes or adjustments as it deems necessary or appropriate to
any or all of: (a) the number and class of Shares which may be delivered under the Plan;
(b) the individual Share limit described in Section 4.3; and (c) the number and class of
Shares subject to outstanding Awards; provided ,however, that the number of Shares
subject to any individual Award shall be rounded down to the nearest whole number.  

7 

ARTICLE 5.
PARTICIPATION 

                Subject
to the provisions of the Plan, the Committee shall have the authority to select the
Eligible Employees to receive Awards. No Eligible Employee shall have any right to be
granted an Award, even if previously granted an Award. 

ARTICLE 6.
TERMS AND
CONDITIONS OF AWARDS  

                Section
6.1    Grant of Award.   Subject to the terms and provisions of the Plan, the Committee
shall have the authority to determine the number of Shares to which an Award shall
relate, the term of the Restriction Period and conditions for lapse thereof, including
but not limited to the attainment of one or more Performance Goals, and any other terms
and conditions of an Award.  

                Section
6.2   Terms and Conditions of Awards.  

                (a)     Period
of Restriction.   Unless the Committee determines otherwise,           Restricted
Shares may not be sold, transferred, pledged, assigned, or otherwise           alienated
or hypothecated by a Participant prior to the lapse of the Restriction           Period,
other than by will or the laws of descent and distribution. The           Restricted
Shares shall be subject to a substantial risk of forfeiture until the
          termination of the applicable Restriction Period as set forth in the
          Participant’s award agreement or as provided herein. During the
Restriction           Period, the Company shall have the right to hold the Restricted
Shares. During           the Restriction Period, Restricted Shares may not participate in
the Badger           Meter, Inc. Automatic Dividend Reinvestment and Stock Purchase Plan.  

                (b)     Certificate
Legend.   At the Committee’s direction, each certificate           representing
Restricted Shares may bear the following legend:  

	 	
“THE
SALE OR OTHER TRANSFER OF THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE, WHETHER
VOLUNTARY, INVOLUNTARY, OR BY OPERATION OF LAW, IS SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER SET FORTH IN THE BADGER METER, INC. 2008 RESTRICTED STOCK PLAN, IN THE RULES AND
ADMINISTRATIVE PROCEDURES ADOPTED PURSUANT TO SUCH PLAN AND/OR IN A RESTRICTED STOCK
AGREEMENT, DATED ____________________. A COPY OF THE 2008 RESTRICTED STOCK PLAN, SUCH
RULES AND ADMINISTRATIVE PROCEDURES AND SUCH RESTRICTED STOCK AGREEMENT MAY BE OBTAINED
FROM THE SECRETARY OF BADGER METER, INC.” 

8 

                (c)     Removal
of Restrictions.   Except as otherwise provided in this Article 6,           Restricted
Shares shall become vested in, and freely transferable by, a           Participant after
the last day of the Restriction Period. Once the Restricted           Shares are released
from the restrictions, a Participant shall be entitled to           have the legend
required by subsection (b) removed from his or her stock           certificate
representing such shares.  

                (d)     Voting
Rights.   Unless otherwise determined by the Committee, during the
          Restriction Period Participants holding Restricted Shares may exercise full
          voting rights with respect to those Shares.  

                (e)     Dividends
and Other Distributions.   Any dividends or other distributions           paid or
delivered with respect to Restricted Shares will be subject to the same           terms
and conditions (including risk of forfeiture) as the Restricted Shares to           which
they relate, and payment or delivery thereof will be deferred accordingly; provided,
however, that at any time and from time to time the Committee           may, in its
sole discretion, provide for the earlier payout of deferred and/or           current
dividends and distributions. No such deferred amount shall bear           interest.  

                (f)     Direct
Registration.   Notwithstanding anything in this Plan to the           contrary, the
Company in its sole discretion may issue Shares or Restricted           Shares hereunder
pursuant to the direct registration system, and, in lieu of the           issuance of
certificated Shares or Restricted Shares, may issue uncertificated           Shares or
Restricted Shares, respectively, to the account of the Participant.           Any
references to Share or Restricted Share certificates shall, in such event,           be
deemed to refer to uncertificated Shares or Restricted Shares, as the case           may
be  

                Section
6.3   Termination of Employment. Except as otherwise provided by the Committee in a
Participant’s award agreement, upon a Participant’s termination of employment
with the Company and its subsidiaries, the following rules shall apply:  

                (a)     Death or
Disability.   If a Participant’s termination of           employment
is due to death or Total and Permanent Disability at a           time when
the Participant could not have been terminated for Cause, any           remaining
Restriction Period shall automatically lapse as of the date of such           termination
of employment or death, as applicable.  

                (b)     Termination
for Other Reasons.   If the Participant’s employment           terminates for any
reason not described above, then any Restricted Shares still           subject to a
Restriction Period as of the date of such termination shall           automatically be
forfeited and returned to the Company; provided,           however, that in the
event of an involuntary termination of the employment           of a Participant by the
Company or any of its subsidiaries other than for Cause,           the Committee may
waive the automatic forfeiture of any or all such Shares and           may add such new
restrictions to such Restricted Shares as it, in its sole and           absolute
discretion, deems appropriate.  

9 

                (c)     Suspension.
  The Committee may suspend payment or delivery of Shares           (without liability for
interest thereon) pending its determination of whether a           Participant was or
should have been terminated for Cause or whether a           Participant has engaged in
Inimical Conduct.  

                Section
6.4    Other Restrictions.   The Committee may impose such other restrictions on any
Awards granted under the Plan (including after the Restriction Period lapses) as it may
deem advisable including, without limitation, restrictions under applicable Federal or
state securities laws, and the Company may legend certificates to give appropriate notice
of such restrictions.  

ARTICLE 7. 
RIGHTS OF
PARTICIPANTS  

                Section
7.1    Employment.   Nothing in the Plan shall interfere with or limit in any way the
right of the Company or any of its subsidiaries to terminate any Participant’s
employment at any time, nor confer upon any Participant any right to continue in the
employ of the Company or any of its subsidiaries.  

                Section
7.2    No Implied Rights; Rights on Termination of Service.   Neither the establishment of
the Plan nor any amendment thereof shall be construed as giving any Participant or any
other person any legal or equitable right unless such right shall be specifically
provided for in the Plan or conferred by specific action of the Committee in accordance
with the terms and provisions of the Plan.  

                Section
7.3    No Funding.   Except as provided in Section 6.2(e), Participants will only receive
Shares upon the expiration of the Restriction Period for Awards. Neither the Participant
nor any other person shall acquire, by reason of the Plan or any Award, any right in or
title to any assets, funds or property of the Company and its subsidiaries whatsoever
including, without limiting the generality of the foregoing, any specific funds, assets,
or other property which the Company or its subsidiaries may, in their sole discretion,
set aside in anticipation of a liability hereunder. Any amounts which may become payable
hereunder shall be paid from the general assets of the Company and its subsidiaries, as
applicable. The Participant shall have only a contractual right to the amounts, if any,
payable hereunder unsecured by any asset of the Company or its subsidiaries. Nothing
contained in the Plan constitutes a guarantee by the Company or its subsidiaries that the
assets of the Company or its subsidiaries shall be sufficient to pay to any person any
amount which may become payable hereunder.  

                Section
7.4    Other Restrictions.   As a condition to the issuance of any Shares under the Plan,
the Committee may require a Participant to enter into a restrictive stock transfer
agreement or other shareholder’s agreement with the Company.  

ARTICLE 8. 
CHANGE IN CONTROL  

                The
Restriction Period for each outstanding Award shall automatically lapse upon a Change in
Control. 

10 

ARTICLE 9. 
AMENDMENT,
MODIFICATION, AND TERMINATION  

                Section
9.1   Amendment, Modification, and Termination of the Plan.   The Board may amend or
terminate the Plan at any time, subject to the following limitations: (a) shareholders
must approve any amendment of the Plan if the Committee determines such approval is
required by: (i) the Exchange Act, (ii) the Code, (iii) the listing requirements of the
American Stock Exchange or any principal securities exchange or market on which the
Shares are then traded, or (iv) any other applicable law. Without the written consent of
the affected Participant or except as expressly provided in the Plan, no termination,
amendment or modification of the Plan shall adversely affect any Award theretofore
granted under the Plan.  

                Section
9.2    Amendment of Award Agreements.   The Committee may at any time amend any
outstanding award agreement; provided, however, that any amendment that decreases
or impairs the rights of a Participant under such agreement shall not be effective unless
consented to by the Participant in writing, except that Participant consent shall not be
required if an Award is amended, adjusted or cancelled under Section 4.4 .  

                Section
9.3    Survival Following Termination.   Notwithstanding the foregoing, to the extent
provided in the Plan, the authority of (a) the Committee to amend, alter, adjust,
suspend, discontinue or terminate any Award, waive any conditions or restrictions with
respect to any Award, and otherwise administer the Plan and any Award and (b) the Board
to amend the Plan, shall continue beyond the date of the Plan’s termination.
Termination of the Plan shall not affect the rights of Participants with respect to
Awards previously granted to them, and all unexpired Awards shall continue in force and
effect after termination of the Plan except as they may lapse or be terminated by their
own terms and conditions.  

                Section
9.4    Shareholder Re-Approval.   If determined by the Company, in order to continue to
grant performance-based Awards under Code Section 162(m), the material terms of the Plan
shall be re-approved by the Company’s shareholders no later than the first annual
shareholders’ meeting (or special meeting in lieu of such meeting) that occurs in
2013.  

ARTICLE 10. 
WITHHOLDING  

                Section
10.1    Tax Withholding.   The Company shall have the power and the right to deduct or
withhold, or require a Participant to remit to the Company, an applicable amount
sufficient to satisfy foreign, Federal, state and local taxes (including the Participant’s
F.I.C.A. obligation) required by law to be withheld (the “tax amount”) with
respect to the issuance of Shares under the Plan or the lapse of the Restriction Period.
The Company shall also have the right to withhold Shares as to which the Restriction
Period has lapsed and which have a Fair Market Value on the date that the amount of tax
to be withheld is determined (the “tax date”) equal to all or any portion of
the amount otherwise to be collected subject to any limitations prescribed by applicable
law (in all cases, only that number of whole Shares the Fair Market Value of which does
not exceed the tax amount shall be withheld or delivered and the Participant shall make a
cash payment to the Company equal to any excess amount to be withheld or collected). The
value of the Shares to be withheld is to be based on the Fair Market Value of the Shares
on the tax date.  

11 

                Section
10.2    Stock Delivery or Withholding.   Participants may elect, subject to the approval
of the Committee and such rules as it shall prescribe, to satisfy the withholding
requirement, in whole or in part, by tendering to the Company previously-acquired Shares
(or by having the Company withhold Shares as to which the Restriction Period has lapsed)
in an amount having a Fair Market Value equal to the tax amount. Such election must be
made on or before the tax date. Once made, the election is irrevocable. The value of the
Shares to be tendered (or withheld) is to be based on the Fair Market Value of the Shares
on the tax date.  

ARTICLE 11. 
LEGENDS; PAYMENT OF
EXPENSES  

                Section
11.1    Legends.   The Company may endorse such legend or legends upon the certificates
for Shares issued under the Plan, including but not limited to the legends referenced in
Section 6.2(b) and Section 6.4, and may issue such “stop transfer” instructions
to its transfer agent in respect of such Shares as it determines to be necessary,
appropriate or convenient to (a) prevent a violation of, or to perfect an exemption from,
the registration requirements of the Securities Act, applicable state securities laws or
other legal requirements, or (b) implement the provisions of the Plan or any agreement
between the Company and a Participant with respect to such Shares.  

                Section
11.2    Payment of Expenses.   The Company shall pay for all issuance taxes with respect
to the issuance of Shares under the Plan, as well as all fees and expenses incurred by
the Company in connection with such issuance.  

ARTICLE 12.
SUCCESSORS  

                All
obligations of the Company under the Plan respecting Awards shall be binding on any
successor to the Company, whether the existence of such successor is the result of a
direct or indirect purchase, merger, consolidation or otherwise, of all or substantially
all of the business and/or assets of the Company. The Plan shall be binding upon and inure
to the benefit of the Participants and their heirs, executors, administrators or legal
representatives. 

ARTICLE 13.
REQUIREMENTS OF LAW  

                Section
13.1    Requirements of Law.   The granting of Awards and the issuance of Shares under the
Plan shall be subject to all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may be
required.  

                Section
13.2    Governing Law.   The Plan and the rights and obligations hereunder shall be
governed by and construed in accordance with the internal laws of the State of Wisconsin
(excluding any choice of law rules that may direct the application of the laws of another
jurisdiction).  

* * * 

12Badger Meter, Inc. 2008
Restricted Stock Plan 
Restricted Stock Award Agreement 

Award Agreement  

     

You have been selected to be a
Participant in the Badger Meter, Inc. 2008 Restricted Stock Plan (the “Plan”),
as specified below. THIS AWARD AGREEMENT IS BEING EXECUTED SUBJECT AND PURSUANT TO THE
TERMS OF THE PLAN AND, IF THERE IS ANY INCONSISTENCY OR CONFLICT, THE PLAN SHALL CONTROL. 

Participant:
  __________________________________________________________________  (“You”) 

Number of Restricted Shares:
  ___________________________________________________ 

Date of Grant:
_______________________________________________________________ 

Fair Market Value Per Share on Date
of Grant:  _____________________________________ 

Restriction Period Ends:   Third
(3rd) anniversary of the Date of Grant (see Section 2 below)  

	1.  	Grant
of Restricted Stock: The Company grants you Restricted Shares as                set
forth above. The Company (or its transfer agent) will hold a stock
               certificate representing your Restricted Shares until the end of the
Restriction                Period. 

	2.  	Restriction
Period: During the Restriction Period, you may not sell,                transfer,
pledge, assign or otherwise alienate or hypothecate (other than by                will or
by the laws of descent and distribution) your Restricted Shares. On the
               last day of the Restriction Period, your Restricted Shares will vest and
become                freely transferable (subject to applicable federal, state, and
local, domestic                or foreign, securities laws or any additional restrictions
imposed by the                Committee), provided you are employed by the Company on
such date. If you                terminate employment, which includes retirement, prior to the end of the Restriction
Period, your Restricted                Shares will be forfeited except as provided in the
Plan. 

	3.  	Removal
of Restrictions: Upon the vesting of your Restricted Shares, the
               Company will deliver a stock certificate or certificates representing your
               Shares to you. 

	4.  	Severability:
The provisions of this Award Agreement are severable and if                any one or
more provisions are determined to be illegal or otherwise                unenforceable,
in whole or in part, the remaining provisions shall nevertheless                be
binding and enforceable. 

	5.  	Miscellaneous: 

	 	(a) 	This
Award Agreement and your rights hereunder are subject to all the terms and
               conditions of the Plan, as it may be amended from time to time, as well as
to                such rules and regulations that the Committee adopts for administration
of the                Plan. By signing below, you acknowledge and agree that you have
received a copy                of the Plan and that the Committee is authorized to
administer, construe,                interpret and make all determinations necessary or
appropriate to the                administration of the Plan and this Award Agreement,
all of which shall be                binding upon you, your heirs, beneficiaries and
estate.  

	 	(b) 	The
Committee may amend this Award Agreement as provided in the Plan.  

	 	(c) 	Unless
you make an election under Section 83(b) of the Code, on the date your
               Restricted Shares vest the Fair Market Value of such Shares will be
considered                taxable compensation to you. If you make an election under
Section 83(b) of the                Code, the Fair Market Value of the Shares on the Date
of Grant will be                considered taxable compensation to you. The Company will
deduct or withhold, or                require you to remit to the Company, an amount
sufficient to satisfy federal,                state, and local taxes required by law to
be withheld with respect to the grant                or vesting of your Restricted
Shares. You may elect, subject to the approval of                the Committee, to
satisfy the withholding requirement, in whole or in part, by                tendering to
the Company or having the Company withhold Shares (including Shares                as to
which the Restriction Period has lapsed) having an aggregate Fair Market
               Value, on the date the tax is to be determined, equal to the minimum
statutory                total tax which could be withheld on the transaction. All
elections shall be                irrevocable and in writing, and shall be signed by you.  

	 	(d) 	You
agree to take all steps necessary to comply with all applicable provisions
               of federal and state securities law and Company policy in exercising your
rights                under this Award Agreement.  

	 	(e) 	Capitalized
terms used in this Award Agreement are defined in the Plan. If there                is
any inconsistency between the terms of this Award Agreement and the terms of
               the Plan, the Plan’s terms shall control.  

	 	(f) 	To
the extent not preempted by federal law, the validity, construction,
               interpretation, and enforceability of this Award Agreement shall be
determined                and governed by the internal laws of the State of Wisconsin
without giving                effect to the principles of conflicts of law. For the
purpose of litigating any                dispute that arises under this Award Agreement,
the parties hereby consent to                exclusive jurisdiction and agree that such
litigation shall be conducted in the                federal or state courts sitting in
the State of Wisconsin.  

        IN
WITNESS WHEREOF, the parties have caused this Award Agreement to be executed as of the
Date of Grant. 

		BADGER METER, INC. 
		

By:____________________________________
		        Name:__________________________
		        Title:__________________________
		

PARTICIPANT 
		

_________________________________

2

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