Document:

exv4w1

Exhibit 4.1

Loan
Agreement dated October 31, 2009 between Badger Meter, Inc. and
the M&I Marshall & Ilsley 

Bank relating to Badger Meter’s revolving credit loan.

M&I MARSHALL & ILSLEY BANK

PROMISSORY NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date 	 	Maturity	 	Loan No.	 	Call / Coll	 	Account	 	Officer	 	Initials
	$35,000,000.00

	 	10-31-2009
	 	10-30-2010	 	 	 	 	 	 	 	 	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:
	 	Badger Meter, Inc.	 	Lender:	 	M&I Marshall & Ilsley Bank
	 
	 	4545 W. Brown Deer Rd.	 	 	 	SE Wisconsin Region Commercial Lending
	 
	 	Milwaukee, WI  53223-2413	 	 	 	770 North Water Street
	 
	 	 	 	 	 	Milwaukee, WI  53202
	 
	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 
	Principal Amount: $35,000,000.00	 	 	 	Date of Note: October 31, 2009

PROMISE TO PAY. Badger Meter, Inc. (“Borrower”) promises to pay to M&I Marshall & Ilsley Bank
(“Lender”), or order, in lawful money of the United States of America, the principal amount of
Thirty Five Million & 00/100 Dollars ($35,000,000.00) or so much as may be outstanding, together
with interest on the unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on October 30, 2009. In addition, Borrower will pay regular monthly payments of
all accrued unpaid interest due as of each payment date, beginning November 30, 2009, with all
subsequent interest payments to be due on the same day of each month after that. Unless otherwise
agreed or required by applicable law, payments will be applied to Accrued Interest, Principal, Late
Charges, and Escrow. Borrower will pay Lender at Lender’s address shown above or at such other
place as Lender may designate in writing.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time
based on changes in an independent index which is the British Bankers Association (BBA) LIBOR and
reported by a major news service selected by Lender (such as Reuters, Bloomberg or Moneyline
Telerate). If BBA LIBOR for the one month period is not provided or reported on the first day of a
month because, for example, it is a weekend or holiday or for another reason, the One Month Libor
Rate shall be established as of the preceding day on which a BBA LIBOR rate is provided for the one
month period and reported by the selected news service (the “Index”). The Index is not necessarily
the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term
of this loan, Lender may designate a substitute index after notice to Borrower. Lender will tell
Borrower the current Index rate upon Borrower’s request. The interest rate change will not occur
more often than each first day of each calendar month and will become effective without notice to
the Borrower. The index currently is 0.246% per annum. The Index to be applied to the unpaid
principal balance of this Note will be calculated as described in the “INTEREST CALCULATION METHOD”
paragraph using a rate of 1.500 percentage points over the Index, resulting in an initial rate of
1.746% per annum based on a year of 360 days. NOTICE: Under no circumstances will the interest
rate on this Note be more than the maximum rate allowed by applicable law.

INTEREST CALCULATON METHOD. Interest on this Note is computed on a 365/360 basis; that is, by
applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance is outstanding.
All interest payable under this Note is computed using this method. This calculation method
results in a higher effective interest rate than the numeric interest rate stated in this Note.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it
is due. Early payment will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower’s obligation to continue to make payments of accrued unpaid interest. Rather, early
payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked
“paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender
may accept it without losing any of Lender’s rights under this Note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written communications concerning disputed
amounts, including any check or other payment instrument that indicates that the payment
constitutes “payment in full” of the amount owed or that is tendered with other conditions or
limitations or as full satisfaction of a disputed amount must be mailed or delivered to: M&I
Marshall & Ilsley Bank, P.O. Box 3114, Milwaukee, WI 53201-3114.

LATE CHARGE. If a payment is not made on or before the 10th day after its due date,
Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest
rate on this Note shall be increased by adding a 5.000 percentage point margin (“Default Rate
Margin”). The Default Rate Margin shall also apply to each succeeding interest rate change that
would have applied had there been no default. However, in no event will the interest rate exceed
the maximum rate permitted by applicable law.

DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) under
this Note:

     Payment Default. Borrower fails to make any payment when due under this Note.

     Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note or in any of the related documents or to comply with
or to perform any term, obligation, covenant or condition contained in any other agreement between
Lender and Borrower.

     Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension
of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Borrower’s property or Borrower’s
ability to repay this Note or perform Borrower’s obligations under this Note or any of the related
documents.

 

 

PROMISSORY
NOTE

(Continued)

Loan No:                       Page 2

     False Statements. Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note or the related documents is false or misleading in
any material respect, either now or at the time made or furnished or becomes false or misleading at
any time thereafter.

     Insolvency. The dissolution or termination of Borrower’s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Borrower.

     Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Borrower or by any government agency against any collateral securing the loan. This includes a
garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if
Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with
Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

     Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser,
surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of,
or liability under, any guaranty of the indebtedness evidenced by this Note.

     Change in Ownership. Any change in ownership of twenty-five percent (25%) or more of the
common stock of Borrower.

Adverse Change. A material adverse change occurs in Borrower’s financial condition, or
Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance on this Note
and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEY’S FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits
under applicable law, Lender’s attorney’s fees and Lender’s legal expenses, whether or not there is
a lawsuit, including attorney’s fees, expenses for bankruptcy proceedings (including efforts to
modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable
law, Borrower also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent
not preempted by federal law, the laws of the State of Wisconsin without regard to its conflicts of
law provisions. This Note has been accepted by Lender in the State of Wisconsin.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the
jurisdiction of the courts of Milwaukee County, State of Wisconsin.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $30.00 if Borrower makes a payment on
Borrower’s loan and the check or preauthorized charge with which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the debt against any and all such accounts,
and, at Lender’s option, to administratively freeze all such accounts to allow Lender to protect
Lender’s charge and setoff rights provided in this paragraph.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as well
as directions for payment from Borrower’s accounts, may be requested orally or in writing by
Borrower or by an authorized person. Lender may, but need not, require that all oral requests be
confirmed in writing. Borrower agrees to be liable for all sums either: (A) advanced in
accordance with the instructions of an authorized person, or (B) credited to any of Borrower’s
accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced
by endorsements on this Note or by Lender’s internal records, including daily computer print-outs.
Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor
is in default under the terms of this Note or any agreement that Borrower or any guarantor has with
Lender, including any agreement made in connection with the signing of this Note; (B) Borrower or
any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such guarantor’s guarantee of this Note or any other loan with
Lender; (D) Borrower has applied funds provided pursuant to this Note for purposes other than
those authorized by Lender; or (E) Lender in good faith believes itself insecure.

HEDGING INSTRUMENTS. The obligations and indebtedness shall include, without limitation, all obligations, indebtedness and liabilities arising
pursuant to or in connection with any interest rate swap transaction, basis swap, forward rate transaction, interest rate option, price risk
hedging transaction or any similar transaction between Borrower and Lender.

PRIOR NOTE. This Promissory Note provides for the renewal or refinance of the existing debt evidenced by the Promissory Note, dated May 17,
2001, as may have been modified, extended or amended.   This Note is not intended to satisfy or extinguish the underlying debt and obligation
evidenced by the May 17, 2001 Promissory Note, but rather set forth the terms and conditions on which such debt is being renewed or
refinanced.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender
and its successors and assigns.

GENERAL PROVISIONS. This Note benefits Lender and its successors and assigns, and binds Borrower
and Borrower’s heirs, successors, assigns, and representatives. If any part of this Note cannot be
enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any
of its rights or remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand
for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless
otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such parties agree that
Lender may renew or extend (repeatedly and for any length of time) this loan or release any party
or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest
in the collateral; and take any other action deemed necessary by Lender without the consent of or
notice to anyone. All such parties also agree that Lender may modify this loan without the consent
of or notice to anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

 

 

PROMISSORY
NOTE

(Continued)

Loan No:                       Page 3

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING
THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

BADGER METER, INC.

	 	 	 	 	 
	By:

	 	/s/ Richard E. Johnson
 

Senior Vice President - Finance, 
Chief Financial Officer and Treasurer
	 	 
	 
	 	 	 	 
	By:

	 	/s/ Richard A. Meeusen
 

Chairman, President and CEOexv4w2

Exhibit 4.2

Loan
Agreement dated October 14, 2009 between Badger Meter, Inc. and the M&I Marshall & Ilsley
 Bank relating to Badger Meter’s euro note.

BADGER METER, INC.

EURO NOTE

	 	 	 
	Euro 3,400,000

	 	Milwaukee, Wisconsin

October 14, 2009

     1. FOR VALUE RECEIVED, the undersigned, Badger Meter. Inc., (hereinafter “Maker”),
promises to pay to the order of M&I Marshall & Ilsley Bank (hereinafter “Holder”) at 770 North
Water Street, Milwaukee, Wisconsin, 53202, the principal sum of THREE MILLION, FOUR HUNDRED
THOUSAND EURO DOLLARS (Euro 3,400,000) on October 31, 2010.

     Both principal and interest are to be made in Euro Dollars at the offices of M&I Marshall &
Ilsley Bank, Attention: Loan and Discount Department, 770 North Water Street, Milwaukee,
Wisconsin, 53202, or at such other place as the holder shall designate in writing to the maker.

          Maker also agree(s) to pay interest from the date hereof on the unpaid principal balance from
time to time outstanding at a rate per annum as follows: Interest shall be due and payable on the
outstanding balance due or advanced hereunder at a per annum rate equal to the LIBOR INDEX RATE
(EURO) plus the MARGIN. In the event and during such time as the BANK shall determine that a
CHANGE IN CIRCUMSTANCE has occurred, the interest rate on the borrowings evidenced by this Note
shall adjust automatically without notice to a per annum rate equal to the BANK’s PRIME RATE.
Notwithstanding the foregoing, after the maturity hereof, whether by acceleration, demand, default
or otherwise interest shall accrue at a rate per annum, payable on demand, equal to the BANK’s
PRIME RATE plus five percentage points until paid in full. CHANGE IN CIRCUMSTANCE shall mean
anyone or more of the following: (a) The British Bankers Association shall cease publishing “London
Interbank Offered Rates (EUROS)” for a 30 day deposit period; (b) Any governmental authority,
central bank or comparable agency shall make it unlawful or impossible for the BANK to make or
offer loans based upon the LIBOR INDEX RATES (EUROS); or (c) The BANK shall determine any
applicable law, rule, regulation, interpretation or directive applicable to the BANK has or would
have the effect of reducing the rate of return to the BANK on the loan evidenced by this Note to a
level below that which the BANK would have achieved but for the loan utilizing the LIBOR INDEX
RATES (EUROS). LIBOR INDEX RATE (EURO) shall mean for any applicable funding period the rate of
interest (rounded upwards, if necessary, to the next higher 1/100 of 1%) published by The British
Bankers Association two business days prior to funding as the “London Interbank Offered Rate
(EURO)” for Euro deposits of the applicable advance period. MARGIN shall mean 175.basis
points. Interest shall be payable at the end of each applicable advance period as billed to the
Maker by the Holder hereof and shall be computed on the actual number of days on the basis of a
year of 360 days. Each advance under this Note can be in 30-day increments for up to 360
days. Advances under this Note must be greater than or equal to $100,000.00 and cannot be prepaid.
Should maker choose an advance period greater than 90 days, holder may increase the margin to
adjust the interest rate to equate to the annual compounded rate if monthly interest payments were
made.

     2. As used herein, the term “prime rate” shall mean the rate of interest announced from time
to time by the Holder as its “prime rate,” such term being used only as a reference rate and not
necessarily representing the lowest rate charged to any customer of Holder. In the event Holder
ceases to use the term “prime rate” in setting a base rate of interest for commercial loans, the
term “prime rate” as used herein shall be determined by reference to the rate used by Holder as its
base rate of interest for commercial loans.

     3. It is agreed that time is of the essence in the performance of all obligations hereunder
and under the Loan Documents. If Maker shall fail to make any payment hereunder when due, or upon
the occurrence of an event of default in the performance or observance of any of the terms,
agreements, covenants or conditions contained in the Loan Documents, then, or at any time
thereafter, the entire principal balance of this Note, irrespective of the maturity date specified
herein, together with the then accrued interest thereon, shall, at the election of the Holder
hereof, and without notice of such election, become immediately due and payable.

     4. All Makers, endorsers, guarantors and sureties hereof jointly and severally waive
presentment, protest, notice of dishonor, and notice of intent to accelerate; and they also jointly
and severally hereby consent to any and all renewals, extensions or modifications of the terms
hereof, including the terms or time for payment; and further agree that any such renewal, extension
or modification of the terms hereof or time for payment or of the terms of any of the Loan
Documents or the release or substitution of any security for the indebtedness evidenced hereby or
any other indulgences shall not otherwise affect the liability of any of said parties for the
indebtedness evidenced by this Note. Any such renewals, extensions or modifications may be made
without notice to any of said parties.

     5. This Note shall be the joint and several obligation of all Makers, endorsers, guarantors,
and sureties, and shall be binding upon them and their successors and assigns and shall inure to
the benefit of the successors and assigns of Holder. All Makers, endorsers, guarantors, and
sureties hereof agree jointly and severally to pay all costs of collection (including those
incurred in any bankruptcy proceedings and regardless of whether suit is filed) and foreclosure,
including reasonable attorneys’ fees and costs.

     6. Any forbearance of Holder in exercising any right or remedy hereunder or under the Loan
Documents, or otherwise afforded by applicable law, shall not be a waiver of or preclude the
exercise of any right or remedy. The acceptance by Holder of payment of any sum payable hereunder
after the due date of such payment shall not be a waiver of Holder’s right to either require prompt
payment when due of all other sums payable hereunder or to declare a default for failure to make
prompt payment.

     7. This Note shall be governed by and construed in accordance with the laws of the State of
Wisconsin.

 

 

     8. If any payment of principal or interest due on this Note is payable on a day which is a
Saturday, Sunday, or legal holiday in the State of Wisconsin, then such payment shall be due on the
next business day, the amount of such payment, in such case, to include all interest accrued to the
date of actual payment.

     9. No setoff or counterclaim of any kind claimed by any Maker, endorser, guarantor or surety
liable under this Note shall stand as a defense to the enforcement of this Note against any
Maker, endorser, guarantor or surety, it being agreed that any such setoff or counterclaim must be maintained by separate suit.

     10. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FOREBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO
PROTECT YOU (MAKER(S) AND US (HOLDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE
STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

     11. THE MAKER HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY (WHICH THE HOLDER ALSO WAIVES) IN ANY
ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATING TO THIS NOTE, THE
OBLIGATIONS OF THE MAKER HEREUNDER OR THE HOLDER’S CONDUCT IN RESPECT OF ANY OF THE FOREGOING.

IN WITNESS WHEREOF. Maker has executed this Note as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BADGER METER, INC.	 	 	 	M&I MARSHALL & ILSLEY BANK
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard E. Johnson
	 	 	 	Title:
	 	/s/ David C. Doran	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Senior VP — Finance, CFO & Treasurer
	 	 	 	Title:
	 	Vice President	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard A. Meeusen
	 	 	 	By:
	 	/s/ James R. Miller	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Chairman, President and CEO
	 	 	 	Title
	 	Senior Vice President

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