Custom Point and Badges

I'm having a difficult time following your documentation on adding custom badges. In the logging achievement actions section, it indicates that adding "2 liner code below in your own extension logic:" What extension logic? Are you saying to paste these two lines at the end of the .badge file containing the rules that I defined in the previous step?

I don't see where to place this .badge file once it's completed.

When i try to install the badge file through the backend "install" interface, i get a blank blue screen, and no changes in the achievements list.
When I place the badge file manually inside the folders:

administrator/components/
media/com_easysocial/apps/users/
media/com_easysocial/apps/fields/

no new rules are added and again no change is showing on the achievements listing. I feel like I am missing something, perhaps something to do with the final step in your documentation -- "..All you need to do is to embed the 2 liner code below in your own extension logic:" I have no idea what extension logic you are referring too. Thanks

P.S. Also, how do I know what commands are available to define points and badge rules for? Is there a creative syntax or are they all predefined? EX: anyobject.anyaction = command