Document:

EX-10.1

 Exhibit 10.1 
 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 (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 incentive compensation, and long-term equity incentive compensation
in the form of time-based and performance-based restricted shares issued under the Trex Company, Inc. 2014 Stock Incentive Plan (formerly, the 2005 Stock Incentive Plan) (the “Stock Incentive Plan”). 

Base Salary. Base salaries are the only non-variable element of the Company’s total compensation. They reflect each executive officer’s
responsibilities, the impact of each executive officer’s position, and the contributions each executive officer delivers to the Company. Salaries are determined by competitive levels in the market for executives with comparable responsibilities
and job scope based on the Company’s peer group and the results of executive compensation surveys, as well as the Company’s internal equity considerations. Each year, at its December meeting, the Compensation Committee reviews and
establishes the base salaries of the Company’s executive officers for the next calendar year. Salary increases, if any, are based on individual performance, market conditions and Company performance. To gauge market conditions, the Compensation
Committee evaluates the peer group and market data compiled by its independent compensation consultant. Base salaries are set upon review of the peer group and market data provided to the Compensation Committee upon consideration of the executive
officer’s experience, tenure, performance and potential. 
 Annual Cash Incentive Compensation. The Company pays annual cash
incentive compensation to its chief executive officer, other executive officers, and other key employees generally based upon the achievement of the Company’s planned pretax earnings and cash-flow objectives for the fiscal year, which are
approved by the Compensation Committee no later than the first quarter of the year. For each fiscal year, each participant in the plan is assigned a “target incentive,” which is expressed as a percentage of the participant’s annual
base salary. The cash incentive amount paid to a participant is determined by multiplying their target incentive by a performance percentage, which is calculated based on the extent to which the planned pretax earnings and cash flow objectives are
achieved (excluding any items determined by the Compensation Committee to be extraordinary and not considered in the establishment of such targets), subject to the discretion of the Compensation Committee to increase or decrease such amount. Cash
incentive 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. 

Long-Term Equity Incentive Compensation. The Company maintains a long-term equity incentive compensation plan for the benefit of its chief
executive officer, other executive officers, and other key employees. Awards under the plan are made under the Stock Incentive Plan by the Compensation Committee, and such awards are a mix of 50% time-based restricted shares and 50%
performance-based restricted shares. The restricted shares have a three-year vesting period, vesting one-third each year equally, with the vesting of the performance-based restricted shares based on performance against target earnings before
interest, taxes, depreciation and amortization, or “EBITDA,” for 1 year, cumulative 2 years and cumulative 3 years, respectively (in each case excluding any items determined by the Compensation Committee to be extraordinary and not
considered in the establishment of such targets). The total target long-term incentive award for each participant in the plan is expressed as a percentage of the participant’s base salary. The grant of restricted shares is conditional upon the
attainment of a certain pretax earnings target for the prior year (excluding any items determined by the Compensation Committee to be extraordinary and not considered in the establishment of such targets), subject to the discretion of the
Compensation Committee to increase or decrease the award. 
 Personal Benefits and Perquisites. The Company maintains a limited number of
benefit programs available solely to the Company’s executive officers. The personal benefits are considered to constitute a part of the Company’s overall program and are presented in this light as part of the total compensation package
approved by the Compensation Committee at the time of an executive officer’s hiring or promotion, as part of the Compensation Committee’s review of each executive officer’s annual total compensation, and in compensation discussions
with executive officers. 
 Other Compensatory Plans 
 The Company’s executive officers also are eligible to participate in the Company’s 401(k) plan, which is available to all regular Company employees.EX-10.3

 Exhibit 10.3 
 TREX COMPANY, INC. 
 AMENDED AND RESTATED 

1999 INCENTIVE PLAN FOR OUTSIDE DIRECTORS 

 TABLE OF CONTENTS 

 

											
	 	  	 	  	 	  	 	  	Page	 
	 1.
	  		  		  	DEFINITIONS	  	 	1	  
	 2.
	  		  		  	PURPOSE	  	 	2	  
	 3.
	  		  		  	SHARES SUBJECT TO THE PLAN	  	 	2	  
	 4.
	  		  		  	ANNUAL DIRECTOR AND COMMITTEE FEES	  	 	2	  
		  	4.1.	  		  	 Annual Director Fee
	  	 	2	  
		  		  	4.1.1	  	 Cash Portion of Annual Director Fee
	  	 	2	  
		  		  	4.1.2	  	 Equity Portion of Annual Director Fee
	  	 	3	  
		  	4.2.	  		  	Annual Committee Fee	  	 	3	  
		  	4.3.	  		  	Election	  	 	3	  
		  	4.4.	  		  	Proration	  	 	3	  
		  	4.5.	  		  	Initial Grant upon Election to Board	  	 	3	  
		  	4.6.	  		  	Equity	  	 	3	  
		  		  	4.6.1	  	 Form of Equity
	  	 	3	  
		  		  	4.6.2	  	 Options and SARs
	  	 	3	  
		  		  	4.6.3	  	 Restricted Stock
	  	 	4	  
	 5.
	  		  		  	GRANT DATE	  	 	4	  
	 6.
	  		  		  	ELECTION TO RECEIVE ADDITIONAL RESTRICTED STOCK	  	 	4	  
		  	6.1.	  		  	 Election Form
	  	 	4	  
		  	6.2.	  		  	 Time for Filing Election Form
	  	 	4	  
	 7.
	  		  		  	ADMINISTRATION	  	 	4	  
		  	7.1.	  		  	 Committee
	  	 	4	  
		  	7.2.	  		  	 Rules for Administration
	  	 	5	  
		  	7.3.	  		  	 Committee Action
	  	 	5	  
		  	7.4.	  		  	 Delegation
	  	 	5	  
		  	7.5.	  		  	 Services
	  	 	5	  
		  	7.6.	  		  	 Indemnification
	  	 	5	  
	 8.
	  		  		  	AMENDMENT AND TERMINATION	  	 	5	  
	 9.
	  		  		  	GENERAL PROVISIONS	  	 	5	  
		  	9.1.	  		  	 Limitation of Rights
	  	 	5	  
		  	9.2.	  		  	 No Rights as Stockholders
	  	 	5	  
		  	9.3.	  		  	 Rights as a Non-Employee Director
	  	 	5	  
		  	9.4.	  		  	 Assignment, Pledge or Encumbrance
	  	 	6	  
		  	9.5.	  		  	 Binding Provisions
	  	 	6	  
		  	9.6.	  		  	 Notices
	  	 	6	  
		  	9.7.	  		  	 Governing Law
	  	 	6	  
		  	9.8.	  		  	 Withholding
	  	 	6	  
		  	9.9.	  		  	 Effective Date
	  	 	6	  

 1. DEFINITIONS 
 To the extent any capitalized words used in this Plan are not defined, they shall have the definitions stated for them in the Trex Company, Inc. 2014 Stock Incentive Plan. 

1.1 “Annual Director Fee” means an annual fee earned by an Eligible Director for service on the Board of Directors.

 1.2 “Annual Committee Fee” means an annual fee earned by an Eligible Director for service on various
committees of the Board of Directors. 
 1.3 “Board of Directors” or “Board” means the Board of
Directors of the Company. 
 1.4 “Cash Portion of the Annual Director Fee” means the portion of the Annual
Director Fee to be received in cash, or if elected by the Eligible Director, in Equity, as provided in Sections 4.3 and 6 hereof. 
 1.5 “Committee” means the Nominating/Corporate Governance Committee which administers the Plan. 
 1.6 “Common Stock” means the common stock, par value $0.01 per share, of the Company. 
 1.7 “Company” means Trex Company, Inc., a Delaware corporation, or any successor thereto. 
 1.8 “Election Form” means the form used by an Eligible Director to elect to receive all or a portion of the Cash Portion of the Annual Director Fee and the Annual Committee Fee for a Plan
Year in the form of Equity. 
 1.9 “Eligible Director” for each Plan Year means a member of the Board of
Directors who is not an employee of the Company or any Subsidiary. 
 1.10 “Equity” means Options, Restricted
Stock or SARs, or any combination thereof, as designated by the Committee from time to time, as provided in Section 4.6. 

1.11 “Equity Portion of the Annual Director Fee” means the portion of the Annual Director Fee to be received in Equity,
as provided in Section 4.1.2 hereof. 
 1.12 “Fair Market Value” means the closing price of a share of
Common Stock reported on the New York Stock Exchange (the “NYSE”) on the date Fair Market Value is being determined, provided that if there is no closing price reported on such date, the Fair Market Value of a share of Common Stock on such
date shall be deemed equal to the closing price as reported by the NYSE for the last preceding date on which sales of shares of Common Stock were reported. Notwithstanding the foregoing, in the event that the shares of Common Stock are listed upon
more than one established stock exchange, “Fair Market Value” means the closing price of the shares of Common Stock reported on the exchange that trades the largest volume of shares of Common Stock on the date Fair Market Value is being
determined. If the Common Stock is not at the time listed or admitted to trading on a stock exchange, Fair Market Value means the mean between the lowest reported bid price and highest reported asked price of the Common Stock on the date in question
in the over-the-counter market, as such prices are reported in a publication of general circulation selected by the Board and regularly reporting the market price of Common Stock in such market. If the Common Stock is not listed or admitted to
trading on any stock exchange or traded in the over-the-counter market, Fair Market Value shall be as determined in good faith by the Board. 
 1.13 “Grant Date” has the meaning set forth in Section 5 hereof. 
 1.14 “Option” means a non-qualified Option granted pursuant to the Trex Company, Inc. 2014 Stock Incentive Plan as may be amended from time to time. 

  
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 1.15 “Option Agreement” means the written agreement between the Company and
the Participant that evidences and sets out the terms and conditions of the Option. 
 1.16 “Option Price” means
the purchase price for each share of Common Stock subject to an Option. 
 1.17 “Participant” for any Plan Year
means an Eligible Director who participates in the Plan for that Plan Year in accordance with Section 6.1 hereof. 
 1.18
“Plan” means the Trex Company, Inc. Amended and Restated 1999 Incentive Plan for Outside Directors as set forth herein and as amended from time to time. 
 1.19 “Plan Year” means the twelve-month period beginning on July 1 and ending on June 30. 
 1.20 “Restricted Stock” means shares of Common Stock, issued pursuant to the Trex Company, Inc. 2014 Stock Incentive Plan as may be amended from time to time. 

1.21 “Restricted Stock Agreement” means the written agreement between the Company and the Participant that evidences and
sets out the terms and conditions of the Restricted Stock. 
 1.22 “SAR Agreement” means the written agreement
between the Company and the Participant that evidences and sets out the terms and conditions of the SARs. 
 1.23 “Stock
Appreciation Right” or “SAR” means a right granted pursuant to, and in accordance with the terms of, the Trex Company, Inc. 2014 Stock Incentive Plan to receive, upon exercise thereof, the excess of (x) the Fair Market
Value of one share of Common Stock on the date of exercise over (y) the grant price of the SAR, determined pursuant to Section 4.6.2 hereof. 
 1.24 “SAR Price” means the grant price of the SAR. 
 1.25
“Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Internal Revenue Code of 1986, as amended. 
 2. PURPOSE 
 The purpose of the Plan is to compensate Eligible Directors for
service on the Board of Directors and various committees of the Board, and to provide an incentive for Eligible Directors to increase their equity holdings in the Company so that the financial interests of the Eligible Directors shall be more
closely aligned with the financial interests of the Company’s stockholders. 
 3. SHARES SUBJECT TO THE PLAN 

The shares of Common Stock issuable under the Plan shall be issued pursuant to the Trex Company, Inc. 2014 Stock Incentive Plan.

 4. ANNUAL DIRECTOR AND COMMITTEE FEES 
 4.1 Annual Director Fee 
 Each Eligible Director shall be entitled to an
Annual Director Fee, which may be adjusted by the Board from time to time, as follows: 
 4.1.1 Cash Portion of the Annual
Director Fee. Each Eligible Director shall receive the amount of forty thousand dollars ($40,000) (the “Cash Portion of the Annual Director Fee”). The Cash Portion of the Annual Director Fee (after reduction pursuant to
Section 4.3 hereof, if any) shall be paid to an Eligible Director in four equal quarterly installments in arrears on the first business day following the end of each quarter of the Plan Year in which the Eligible Director provided services to
the Company. Notwithstanding the foregoing, (a) any 

  
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Eligible Director who serves as Chairman of the Board shall receive the amount of seventy thousand dollars ($70,000) in lieu of the $40,000 payment referred to above, and (b) any Eligible
Director that serves as Lead Independent Director shall receive the amount of twelve thousand five hundred dollars ($12,500) in addition to the $40,000 payment referred to above, with all other provisions of this subsection being applicable to such
Eligible Director(s). 
 4.1.2 Equity Portion of the Annual Director Fee. Each Eligible Director shall receive Equity
valued at fifty five thousand dollars ($55,000) (the “Equity Portion of the Annual Director Fee”). The Equity Portion of the Annual Director Fee shall be paid in arrears as provided in Section 5 below. 

4.2 Annual Committee Fee 
 Each Eligible Director shall be entitled to an Annual Committee Fee, which may be adjusted by the Board from time to time, as follows (a) twelve thousand five hundred dollars ($12,500) for the Audit
Committee Chairman, (b) seven thousand five hundred dollars ($7,500) for each Audit Committee member (other than the Chairman), (c) seven thousand five hundred dollars ($7,500) for the Nominating/Corporate Governance Committee Chairman and
the Compensation Committee Chairman, and (d) five thousand dollars ($5,000) for each Compensation Committee member (other than the Chairman) and Nominating/Corporate Governance Committee member (other than the Chairman). The Annual Committee
Fee shall be paid to an Eligible Director in four equal quarterly installments in arrears on the first business day following each quarter of the Plan Year in which the Eligible Director served on the applicable committee(s). 

4.3 Election 
 Pursuant to Section 6 hereof, an Eligible Director may elect to receive all or a portion of the Cash Portion of the Annual Director Fee and the Annual Committee Fee in the form of Equity. 

4.4 Proration 
 The Cash Portion of the Annual Director Fee, the Equity Portion of the Annual Director Fee and the Annual Committee Fee shall be prorated for any partial periods served. 

4.5 Initial Grant upon Election to Board 
 Upon initial election to the Board (but not subsequent re-elections), each Eligible Director shall receive Equity valued at fifty five thousand dollars ($55,000). 

4.6 Equity 
 4.6.1 Form of Equity. Whenever Equity is to be granted to Eligible Directors hereunder, the Committee shall, prior to such grant, determine whether such Equity shall be in the form of Options,
Restricted Stock or SARs, or any combination thereof. 
 4.6.2 Options and SARs. If Options or SARS are granted, the
number of Options or SARs granted shall be determined by dividing the dollar amount of the grant by the value of each Option or SAR on the Grant Date as determined pursuant to the methodology then in use by the Company’s Finance Department to
value Options and SARs granted pursuant to the Trex Company, Inc. 2014 Stock Incentive Plan. The Option Price or SAR Price of Common Stock covered by each SAR or Option, as the case may be, granted under the Plan shall be the Fair Market Value of
such Common Stock on the Grant Date. Each Option or SAR, as the case may be, granted hereunder shall be exercisable in respect of 100 percent (100%) of the number of shares covered by the grant on the date of the grant of such Option or SAR.
Any limitation on the exercise of an Option or SAR contained in any Option or SAR Agreement may be rescinded, modified or waived by the Committee, in its sole discretion, at any time and from time to time after the date of grant of such Option or
SAR. The Option or SAR, as the case may be, shall be exercisable, in whole or in part, at any time and from time to time, prior to the termination of the Option or SAR; provided, that no single exercise of the Option or SAR shall be for less
than 100 shares, unless the number of shares purchased is the total number at the time available for purchase under the Option or SAR. Each Option or 

  
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SAR, as the case may be, granted under the Plan shall terminate, and all rights to purchase shares of Common Stock thereunder shall cease, upon the expiration of ten years (eleven years if the
service of the Participant as a director of the Company shall terminate due to death in the tenth year of the Option or SAR term) from the date such Option or SAR is granted. Except as otherwise provided in the Option or SAR Agreement, upon the
termination of service (a “Service Termination”) of the Participant as a director of the Company for any reason, the Participant shall have the right, at any time within five years after the date of such Participant’s Service
Termination and prior to termination of the Option or SAR, to exercise any Option or SAR held by such Participant at the date of such Participant’s Service Termination. After the termination of the Option or SAR, the Participant shall have no
further right to purchase shares of Common Stock pursuant to such Option or SAR. 
 4.6.3 Restricted Stock. If Restricted
Stock is granted, the number of shares of Restricted Stock shall be determined by dividing the dollar amount of the grant by the Fair Market Value of a share of Common Stock on the Grant Date. Except as otherwise provided in the Restricted Stock
Agreement, each share of Restricted Stock will vest on the first anniversary of the grant, provided that such Restricted Stock has not been forfeited, as provided below. Except as otherwise provided in the Restricted Stock Agreement, (a) in the
event of a Service Termination of a Participant due to death, “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code), or retirement effective at the end of an applicable three-year term, any unvested
Restricted Stock held by such Participant shall immediately vest, and (b) in the event of a Service Termination for any other reason, any unvested Restricted Stock held by such Participant shall immediately be deemed forfeited. 

5. GRANT DATE 
 The date
of grant for the Equity Portion of the Annual Director Fee shall be the date of the first regularly scheduled Board of Directors’ Meeting following the end of each Plan Year in which the Eligible Director provided services to the Company, and
the date of grant for Equity issued in lieu of the Cash Portion of the Annual Director Fee and the Annual Committee Fee, as provided in Section 8 hereof, shall be the date such Fees would otherwise be due (each of such dates being referred to
as the “Grant Date”). 
 6. ELECTION TO RECEIVE ADDITIONAL EQUITY 

6.1 Election Form 
 A Participant who wishes to receive all or any portion of the Cash Portion of the Annual Director Fee and the Annual Committee Fee in the form of Equity shall file an Election Form with the Company, in
the form and manner prescribed by the Committee. Filing of a completed Election Form will authorize the Company to issue Equity to the Participant in lieu of all or any portion of the Cash Portion of the Annual Director Fee and the Annual Committee
Fee, in accordance with the Participant’s instructions on the Election Form. 
 6.2 Time for Filing Election Form

 An Election Form shall be completed and filed by each newly elected Eligible Director within thirty (30) days after the
Participant’s election to the Board, and elections under the Plan made by a newly elected Eligible Director shall apply to the Participant’s Annual Director Fee and Annual Committee Fee for the remainder of the Plan Year and subsequent
Plan Years unless and until a new Election Form is submitted by an Eligible Director to the Corporate Secretary. Notwithstanding the foregoing, a new Election Form may be submitted by each Eligible Director no more than once each Plan Year, and any
new election shall not be effective until the start of the next calendar year. 
 7. ADMINISTRATION 

7.1 Committee 
 The general administration of the Plan and the responsibility for carrying out its provisions shall be placed in the Nominating/Corporate Governance Committee. 

  
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 7.2 Rules for Administration 

Subject to the limitations of the Plan, the Committee may from time to time establish such rules and procedures for the administration and
interpretation of the Plan and the transaction of its business as the Committee may deem necessary or appropriate. The determination of the Committee as to any disputed question relating to the administration and interpretation of the Plan shall be
conclusive. 
 7.3 Committee Action 
 Any act which the Plan authorizes or requires the Committee to do may be done by a majority of its members. The action of such majority, expressed from time to time by a vote at a meeting (i) in
person, or (ii) by telephone or other means by which all members can hear one another shall have the same effect for all purposes as if assented to by all members of the Committee at the time in office. The Committee may also act without a
meeting by unanimous written consent. 
 7.4 Delegation 

The members of the Committee may authorize one or more of their number to execute or deliver any instrument, make any payment or perform
any other act which the Plan authorizes or requires the Committee to do. 
 7.5 Services 

The Committee may employ or retain agents to perform such clerical, accounting and other services as it may require in carrying out the
provisions of the Plan. 
 7.6 Indemnification 
 The Company shall indemnify and save harmless each member of the Committee against all expenses and liabilities arising out of membership on the Committee, other than expenses and liabilities arising from
the such member’s own gross negligence or willful misconduct, as determined by the Board of Directors. 
 8. AMENDMENT AND TERMINATION

 The Company, by action of the Board of Directors or the Committee, may at any time or from time to time modify or amend
any or all of the provisions of the Plan, or may at any time terminate the Plan. No such action shall adversely affect the accrued rights of any Participant hereunder without the Participant’s consent thereto. 

9. GENERAL PROVISIONS 

9.1 Limitation of Rights 
 No Participant shall have any right to any payment or benefit hereunder except to the extent provided in the Plan. 
 9.2 No Rights as Stockholders 
 Nothing contained in this Plan shall be
construed as giving any Participant rights as a stockholder of the Company. 
 9.3 Rights as a Non-Employee Director

 Nothing contained in this Plan shall be construed as giving any Participant a right to be retained as a non-employee director
of the Company. 

  
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 9.4 Assignment, Pledge or Encumbrance 

No assignment, pledge or other encumbrance of any payments or benefits under the Plan shall be permitted or recognized and, to the extent
permitted by law, no such payments or benefits shall be subject to legal process or attachment for the payment of any claim of any person entitled to receive the same, except to the extent such assignment, pledge or other encumbrance is in favor of
the Company to secure a loan or other extension of credit from the Company to the Participant. 
 9.5 Binding Provisions

 The provisions of this Plan shall be binding upon each Participant as a consequence of the Participant’s election to
participate in the Plan, upon the Company, upon the Participant’s heirs, executors and administrators and upon the successors and assigns of the Participant and the Company. 

9.6 Notices 
 Any election made or notice given by a Participant pursuant to the Plan shall be in writing to the Committee or to such representative thereof as may be designated by the Committee for such purpose and
shall be deemed to have been made or given on the date received by the Committee or its representative. 
 9.7 Governing
Law 
 The validity and interpretation of the Plan and of any of its provisions shall be construed under the laws of the
State of Delaware without giving effect to the choice of law provisions thereof. 
 9.8 Withholding 

The Company shall have the right to deduct from the amounts distributable hereunder any federal, state or local taxes required by law to
be withheld with respect to such distributions, and such additional amounts of withholding as are reasonably requested by the Participant. 
 9.9 Effective Date 
 This Plan shall be effective as of March 12, 1999.
The Plan was amended and restated effective May 14, 2002, October 24, 2003, July 27, 2004, February 10, 2005, July 21, 2005, February 8, 2006, July 20, 2006 and November 12, 2007.
The Plan was amended on May 5, 2010, July 20, 2010, July 24, 2012, April 30, 2014 and February 18, 2015. 

  
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