Document:

Exhibit 10.1

 Exhibit 10.1 
  
 Trex Company, Inc. 
  
 Description of Non-Employee Director Compensation 
  
 Non-employee directors of Trex Company, Inc. (the “Company”) receive cash and equity-based fees pursuant to the Trex Company, Inc. Amended and
Restated 1999 Incentive Plan for Outside Directors (the “Outside Director Plan”). The Outside Director Plan is administered by a committee consisting of the Company’s Chief Executive Officer and the Company’s Chief Financial
Officer. All stock options awarded as fees to non-employee directors are issued pursuant to the Trex Company, Inc. Amended and Restated 1999 Stock Option and Incentive Plan. 
  
 Each non-employee director receives, as an annual fee for service on the board of directors, $20,000, stock options to
purchase 2,000 shares of common stock, $1,000 for each board meeting attended in person and $500 for each board meeting attended via teleconference. In addition, each member of the audit committee (other than the chairman) receives an annual
committee fee of $5,500, each member of the compensation and the nominating/corporate governance committees (other than their respective chairmen) receives an annual committee fee of $3,500, the chairman of the audit committee receives an annual
committee fee of $10,000, and the chairmen of the compensation and the nominating/governance committees receive an annual committee fee of $7,500. The monetary portion of the annual director fee and the annual committee fees are paid in the form of
cash, stock options (based on the Black-Scholes valuation model), or a combination of cash and stock options, based on the percentages of these forms of consideration elected by the serving director. The monetary portion of the annual director fee
and the annual committee fees are paid in four equal quarterly installments in arrears on the first business day following each quarter of the fiscal year in which the eligible director completes board or committee service. The stock options for
2,000 shares are granted on the date of the first regularly scheduled board of directors meeting after June 30 of each year. 
  
 The Company’s current policy is to grant non-employee directors options to purchase 1,500 shares of common stock upon their initial appointment to
the board of directors. The exercise price per share under each option granted to a non-employee director upon appointment or in payment of annual director fees and annual committee fees is the fair market value of the common stock on the option
grant date. Each such option awarded in 2004 and in subsequent periods vests on the first anniversary of the option grant date. No option is exercisable more than ten years after the option grant date. Upon the termination of a non-employee
director’s service for any reason (other than for cause), any options granted to the director will vest, and the director will have the right, at any time within five years after the date of termination of service and prior to termination of
the options, to exercise any options held by the director on the service termination date.Exhibit 10.2

 Exhibit 10.2 
  
 Trex Company, Inc. 
  
 Description of Management Compensatory Plans and Arrangements 
  
 Components of Executive Compensation 
  
 In accordance with the rules of the New York Stock Exchange, all components of compensation for the chief executive officer and other executive officers
of Trex Company, Inc. (the “Company”) are determined by the compensation committee of the board of directors, all of whom meet the independence requirements prescribed by such rules. 
  
 The Company’s executive compensation program includes a base salary,
annual cash bonuses and long-term incentive compensation in the form of stock option awards and other equity-based awards issued under the Trex Company, Inc. Amended and Restated 1999 Stock Option and Incentive Plan. 
  
 Base Salary. Base salaries of executives are initially determined by
evaluating the responsibilities of the position, the experience and knowledge of the executive, and the competitive marketplace for executive talent, including a comparison to base salaries for comparable positions at public companies in the
Company’s peer group. Base salaries for executive officers are reviewed annually by the compensation committee based upon, among other things, individual performance and responsibilities. For 2004, salaries for the executive officers were as
follows: Robert G. Matheny ($451,860), Harold F. Monahan ($315,236), Paul D. Fletcher ($244,879), A. Catherine Lawler ($224,396, including salary payments under a severance agreement), and Philip J. Pifer ($126,582). 
  
 Annual Cash Bonuses. The Company pays annual cash bonuses to its chief
executive officer based upon the achievement of an earnings per share objective and its other executive officers based in part upon the achievement of an earnings per share objective. For 2004, executive officers had the opportunity to earn cash
bonuses equal to a varying percentage of their base salary, depending upon the attainment of between 85% and 120% of the earnings per share objective for the fiscal year. If the Company exceeded 120% of the fiscal year objective for 2004, the
compensation committee could have awarded an additional bonus to its executive officers based on its evaluation of performance on other measures and progress in achieving the Company’s strategic performance objectives. Applying the bonus
formula specified for fiscal 2004, the compensation committee approved an annual bonus for the chief executive officer equal to 100% of his target annual bonus, and approved annual bonuses for other executive officers as a group equal to 110% of
their target annual bonuses. The bonuses for the executive officers for 2004 were as follows: Robert G. Matheny ($336,000), Harold F. Monahan ($186,550), Paul D. Fletcher ($150,000), and Philip J. Pifer ($100,000). 
  
 Long-Term Incentive Compensation. In determining the amount of stock
option awards and other equity-based awards under the 1999 Stock Option and Incentive Plan, the compensation committee considers each executive’s current performance and anticipated future contributions to the Company’s performance, as
well as the amount and terms of the options and other equity-based awards previously granted to the executive by the Company. In fiscal 2005, but based on performance considerations for individual and company results in 2004, the compensation
committee approved the grant of stock options under the 1999 Stock Option and Incentive Plan to the executive officers for following numbers of shares of common stock: Robert G. Matheny (10,773), Harold F. Monahan (4,770), Paul D. Fletcher (3,150),
and Philip J. Pifer (2,051). Based on the same considerations, the compensation committee also approved the grant to the executive officers of the following numbers of shares of restricted stock: Robert G. Matheny (6,089), Harold F. Monahan (2,696),
Paul D. Fletcher (1,780), and Philip J. Pifer (1,159). 

 All stock options granted to executive officers in fiscal 2004 and 2005 were non-qualified stock options
with an exercise price that was equal to the fair market value of the Company’s common stock on the grant date. The stock options granted in fiscal 2005 based on 2004 performance were fully vested on the grant date. The shares of restricted
stock awarded to the executive officers for 2004 performance vest over a three-year period in three equal installments beginning on the first anniversary of the grant date. 
  
 In fiscal 2005, the compensation committee also granted stock options and performance share awards to the executive officers
as long-term incentives. In determining the amount of these awards, the compensation committee considered each officer’s anticipated future contributions to the Company’s performance, as well as the amount and terms of stock-based awards
previously granted to the officer. Based on these considerations, the compensation committee approved the grant to the executive officers of stock options for the following numbers of shares of common stock: Robert G. Matheny (33,824), Harold F.
Monahan (15,576), Paul D. Fletcher (12,000) and Philip J. Pifer (12,000). The compensation committee also approved the grant to the executive officers of the following numbers of performance shares: Robert G. Matheny (12,778), Harold F. Monahan
(5,884), Paul D. Fletcher (4,500) and Philip J. Pifer (4,500). The stock options awarded to the named executive officers as long-term incentives vest over a three-year period in three equal installments beginning on the first anniversary of the
grant date. The performance shares awarded to the named executive officers are deliverable on the third anniversary of the grant date if specified performance objectives for 2005, 2006 and 2007 established by the compensation committee are
satisfied. 
  
 Other Compensatory Plans 
  
 The Company’s executive officers also are eligible to participate in
the Company’s defined contribution employee profit sharing and 401(k) plan and the Company’s defined contribution employee money purchase pension plan, each of which is available to all regular Company employees. 
  

 2Exhibit 10.8

 Exhibit 10.8 
  
 Trex Company, Inc. 
  
 Description of Annual Executive Incentive Compensation Plan 
  

Trex Company, Inc. (the “Company”) maintains an annual executive incentive compensation plan (the “Plan”) for the benefit of its
executive officers, other officers, managers and certain other key employees of the Company. Awards under the Plan are made by the Compensation Committee of the Company’s Board of Directors. 
  
 Under the Plan, the Company pays annual cash bonuses based upon the
achievement of specified performance objectives, as described below. For each fiscal year, each participant in the Plan is assigned a “target bonus,” which is expressed as a percentage of the participant’s annual base salary or salary
range midpoint for such fiscal year, depending on grade level. Cash bonuses may be awarded at a lesser or greater percentage than the target bonus percentage, depending on the extent to which the performance objectives are achieved. The bonus
percentage levels for each fiscal year and the performance objectives are annually approved by the Compensation Committee. The Compensation Committee has the discretion to award a bonus, which exceeds the otherwise applicable maximum bonus
percentage, except that the value of the bonus may not exceed $2,000,000 for any fiscal year for any employee. 
  
 The bonus amount payable to the chief executive officer, the executive vice presidents and the senior vice presidents generally is based upon the
achievement of an earnings per share objective, although for such officers other than the chief executive officer, other factors may be considered. The bonus amount payable to other officers, managers and certain other key employees of the Company
is based 50% on the same company performance target of earnings per share and 50% on individual performance based upon individual objectives established by management. 
  
 Bonus payments are conditional upon the participant’s continued employment by the Company through the date of grant,
and are pro rated for employees who have served for less than a full year.

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