Exhibit 10.1

 

December 20, 2005

 

[Optionee Name]

[Address]

 

  Re: Acceleration of Stock Options

 

Dear                             :

 

This letter concerns certain stock options granted to you pursuant to the Trex
Company, Inc. Amended and Restated 1999 Stock Option and Incentive Plan (the
“Plan”).

 

As you may know, the Compensation Committee of the Board of Directors of Trex
Company, Inc. (the “Company”) has taken action to fully accelerate the vesting
of each otherwise unvested stock option held by an option holder as of
December 19, 2005 granted under the Plan with an option exercise price that is
greater than $25.92 (each such option, an “Accelerated Option”). Your
Accelerated Options are listed on Exhibit A to this letter.

 

You agree that you will not sell, transfer, pledge or otherwise dispose of any
shares of Company common stock acquired upon the exercise of your Accelerated
Options (any such transaction, a “Sale”) for any reason whatsoever until the
earliest of (i) the date on which the exercise would have been permitted under
such Accelerated Option’s pre-acceleration vesting terms set forth in the option
agreement(s) between you and the Company relating to your Accelerated Options,
(ii) the date on which the exercise would have been permitted under any
provision of the Plan, including but not limited to pursuant to Section 18.2 of
the Plan (Reorganization, Sale of Assets or Sale of Stock), or (iii) your last
day of employment with the Company. For the avoidance of doubt, the foregoing
agreement will apply to any Sale of shares of Company common stock by you to
(i) cover the exercise price of such Accelerated Options in connection with a
cashless exercise or (ii) satisfy withholding taxes due upon your exercise of an
Accelerated Option.

 

           

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If this Agreement correctly sets forth your agreement with regard to your
Accelerated Options, kindly sign and return a copy of this Agreement to my
attention.

 

Thank you.

 

Sincerely,

TREX COMPANY, INC.

 

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Anthony J. Cavanna

Chairman and Chief Executive Officer

 

I agree with the terms and conditions set forth in this Agreement

 

 

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Signature

 

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Printed Name

 

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Date

 

           

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Exhibit A

 

Accelerated Options

 

Grant Date

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Exercise Price

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Number of Accelerated Options

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