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It's a weird way of putting it i'd have to agree.
There are different tiers of badges. Endurance, General, Lord, or something. Five tiers in total, if I am not mistaken, but I don't play Last Stand.
Every couple of waves (3?) one badge spawns in a one of the preset locations on the map. It is selected randomly, but badges cannot spawn in unreachable places, or if you don't collect them, they can spawn inside one another.
As soon as you collect a badge, you have earned both its material and experience reward. (Unless you get disconnected or have a server error or something that is equally fun)
When you lose, pay attention to the score-screen.
You'll see that first your badge count pops up, immediately followed by the Material and Experience values.
For example
5x Endurance Badge
+ 250XP
+ 75 Green Materials