Document:

EX-10.1

 Exhibit 10.1 

TREX COMPANY, INC. 

AMENDED AND RESTATED 

2014 STOCK INCENTIVE PLAN 

 TABLE OF CONTENTS 
  

							
	 1.     PURPOSE
	  	 	1	 
	 2.     DEFINITIONS
	  	 	1	 
	 3.     ADMINISTRATION OF THE PLAN
	  	 	3	 
	 3.1
	  	Committee	  	 	3	 
	 3.2
	  	Grants	  	 	3	 
	 3.3
	  	No Liability	  	 	4	 
	 3.4
	  	Applicability of Rule 16b-3	  	 	4	 
	 3.5
	  	Termination of Employment or Other Relationship	  	 	4	 
	 4.     STOCK SUBJECT TO THE PLAN
	  	 	4	 
	 4.1
	  	Aggregate Limitation	  	 	4	 
	 4.2
	  	Application of Aggregate Limitation	  	 	5	 
	 4.3
	  	Per-Grantee Limitation	  	 	5	 
	 5.     EFFECTIVE DATE AND TERM OF THE PLAN
	  	 	6	 
	 5.1
	  	Effective Date	  	 	6	 
	 5.2
	  	Term	  	 	6	 
	 6.     PERMISSIBLE GRANTEES
	  	 	6	 
	 6.1
	  	Employees and Service Providers	  	 	6	 
	 6.2
	  	Multiple Grants	  	 	6	 
	 6.3
	  	Limitations on Grants of Incentive Stock Options	  	 	6	 
	 7.     AWARD AGREEMENT
	  	 	6	 
	 8.     OPTIONS
	  	 	6	 
	 8.1
	  	Option Price	  	 	6	 
	 8.2
	  	Vesting	  	 	7	 
	 8.3
	  	Option Term	  	 	7	 
	 8.4
	  	Termination of Employment or Other Relationship for a Reason Other than Retirement, Death or Disability	  	 	7	 
	 8.5
	  	Rights in the Event of Death	  	 	7	 
	 8.6
	  	Rights in the Event of Disability	  	 	7	 
	 8.7
	  	Rights in the Event of Retirement	  	 	8	 
	 8.8
	  	Limitations on Exercise of Option	  	 	8	 
	 8.9
	  	Method of Exercise	  	 	8	 
	 8.10
	  	Rights as a Stockholder; Dividend Equivalents	  	 	8	 
	 8.11
	  	Delivery of Stock Certificates	  	 	8	 
	 9.     STOCK APPRECIATION RIGHTS
	  	 	9	 
	 9.1
	  	SAR Price	  	 	9	 
	 9.2
	  	Vesting, and Terms and Conditions Governing SARs	  	 	9	 
	 9.3
	  	SAR Term	  	 	9	 
	 9.4
	  	Termination of Employment or Other Relationship for a Reason Other than Retirement, Death or Disability	  	 	9	 
	 9.5
	  	Rights in the Event of Death	  	 	9	 
	 9.6
	  	Rights in the Event of Disability	  	 	9	 
	 9.7
	  	Rights in the Event of Retirement	  	 	10	 
	 9.8
	  	Limitations on Exercise of SAR	  	 	10	 
	 10.     TRANSFERABILITY OF OPTIONS AND SARS
	  	 	10	 
	 10.1
	  	General Rule	  	 	10	 
	 10.2
	  	Family Transfers	  	 	10	 
	 11.     RESTRICTED STOCK
	  	 	10	 
	 11.1
	  	Grant of Restricted Stock or Restricted Stock Units	  	 	10	 
	 11.2
	  	Restrictions	  	 	11	 
	 11.3
	  	Restricted Stock Certificates	  	 	11	 
	 11.4
	  	Rights of Holders of Restricted Stock	  	 	11	 
	 11.5
	  	Rights of Holders of Restricted Stock Units	  	 	11	 

  
 i 

							
	 11.6          
	  	Termination of Employment or Other Relationship for a Reason Other than Death, Disability or Retirement	  	 	12	 
	 11.7          
	  	Rights in the Event of Death	  	 	12	 
	 11.8          
	  	Rights in the Event of Disability	  	 	12	 
	 11.9          
	  	Rights in the Event of Retirement	  	 	12	 
	 11.10        
	  	Delivery of Shares and Payment Therefor	  	 	12	 
	 12. UNRESTRICTED STOCK
	  	 	12	 
	 13. PARACHUTE LIMITATIONS
	  	 	13	 
	 14. REQUIREMENTS OF LAW
	  	 	13	 
	 14.1
	  	General	  	 	13	 
	 14.2
	  	Rule 16b-3	  	 	13	 
	 15. AMENDMENT AND TERMINATION OF THE PLAN
	  	 	14	 
	 16. EFFECT OF CHANGES IN CAPITALIZATION
	  	 	14	 
	 16.1
	  	Changes in Stock	  	 	14	 
	 16.2
	  	Reorganization, Sale of Assets or Sale of Stock	  	 	14	 
	 16.3
	  	Adjustments	  	 	15	 
	 16.4
	  	No Limitations on Company	  	 	15	 
	 17. DISCLAIMER OF RIGHTS
	  	 	15	 
	 18. NONEXCLUSIVITY OF THE PLAN
	  	 	15	 
	 19. WITHHOLDING TAXES
	  	 	16	 
	 20. CAPTIONS
	  	 	16	 
	 21. OTHER PROVISIONS
	  	 	16	 
	 22. NUMBER AND GENDER
	  	 	16	 
	 23. SEVERABILITY
	  	 	16	 
	 24. GOVERNING LAW
	  	 	16	 
	 25. SECTION 409A
	  	 	16	 

  

  
 ii 

 TREX COMPANY, INC. 

AMENDED AND RESTATED 

2014 STOCK INCENTIVE PLAN 

Trex Company, Inc., a Delaware corporation (the “Company”), sets forth herein the terms of the Trex Company, Inc. Amended and
Restated 2014 Stock Incentive Plan (the “Plan”), which amends and restates the Trex Company, Inc. 2005 Stock Incentive Plan, as follows: 
  

	1.	PURPOSE 

 The Plan is intended to enhance the Company’s ability to attract and
retain highly qualified officers, key employees, outside directors and other persons, and to motivate such officers, key employees, outside directors and other persons to serve the Company and its affiliates (as defined herein) and to expend maximum
effort to improve the business results and earnings of the Company, by providing to such officers, key employees, outside directors and other persons an opportunity to acquire or increase a direct proprietary interest in the operations and future
success of the Company. To this end, the Plan provides for the grant of stock options, restricted stock, restricted stock units, unrestricted stock and stock appreciation rights in accordance with the terms hereof. Stock options granted under the
Plan may be non-qualified stock options or incentive stock options, as provided herein, except that stock options granted to outside directors and all Service Providers shall in all cases be non-qualified stock options. With respect to persons subject to Section 16 of the Exchange Act (as defined below), transactions under this Plan are intended to satisfy the requirements of Rule 16b-3 of the Act. 
  

	2.	DEFINITIONS 

 For purposes of interpreting the Plan and related documents (including
Award Agreements), the following definitions shall apply: 
  

	2.1	“Affiliate” of, or person “affiliated” with, a person means any company or other trade or business that controls, is controlled by or is under common control with such person within the meaning of
Rule 405 of Regulation C under the Securities Act. 

  

	2.2	“Award Agreement” means the stock option agreement, restricted stock agreement, restricted stock unit agreement, stock appreciation right agreement or other written agreement between the Company and a Grantee
that evidences and sets out the terms and conditions of a Grant. 

  

	2.3	“Board” means the Board of Directors of the Company. 

  

	2.4	“Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 

  

	2.5	“Committee” means the Compensation Committee of the Board (or any successor Committee designated by the Board to administer the Plan), provided that, if any member of the Compensation Committee does not
qualify as (i) an outside director for purposes of Code Section 162(m), (ii) a non-employee director for purposes of Rule 16b-3 under the Exchange Act, and
(iii) an independent director for purposes of the rules of the exchange on which the Stock is traded, the remaining members of the Committee (but not less than two members) shall be constituted as a subcommittee to act as the Committee for
purposes of the Plan. 

  

	2.6	“Company” means Trex Company, Inc., a Delaware corporation. 

  

	2.7	“Disability” means, as to an Incentive Stock Option, a Disability within the meaning of Code section 22(e)(3). As to all other incentive awards, Disability (or variations thereof) means, unless otherwise
provided in the Award Agreement with respect to the Grant, a Disability within the meaning of Code Section 409A(a)(2)(C) and Section 1.409A-3(i)(4) of the applicable treasury regulations (or any
successor provision). The Committee shall determine whether a Disability exists and the determination shall be conclusive. 

  
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	2.8	“Effective Date” means the date on which the Plan, as herein amended and restated and adopted by the Board on February 20, 2014, is approved by the Company’s stockholders. 

 

	2.9	“Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. 

  

	2.10	“Fair Market Value” means the closing price of a share of Stock reported on the New York Stock Exchange (“NYSE”) on the date Fair Market Value is being determined, provided that if there should be no
closing price reported on such date, the Fair Market Value of a share of 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 were reported. Notwithstanding the
foregoing, in the event that the shares of Stock are listed upon more than one established stock exchange, Fair Market Value means the closing price of a share of Stock reported on the exchange that trades the largest volume of shares on such date.
If the 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 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 Committee and regularly reporting the market price of Stock in
such market. If the 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 Committee. 

  

	2.11	“Grant” means an award of an Option, Restricted Stock, Restricted Stock Unit, Unrestricted Stock, or Stock Appreciation Right under the Plan. 

 

	2.12	“Grant Date” means, as determined by the Committee, (i) the date as of which the Committee approves a Grant or (ii) such other date as may be specified by the Committee. 

 

	2.13	“Grantee” means a person who receives or holds an Option, Restricted Stock, Restricted Stock Unit, Stock Appreciation Right or Unrestricted Stock under the Plan. 

 

	2.14	“Immediate Family Members” means the spouse, children, grandchildren, parents and siblings of the Grantee. 

  

	2.15	“Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422 of the Code. 

  

	2.16	“Option” means an option to purchase one or more shares of Stock pursuant to the Plan. 

  

	2.17	“Option Price” means the purchase price for each share of Stock subject to an Option. 

  

	2.18	“Outside Director” means a member of the Board who is not an officer or employee of the Company or any Subsidiary. 

  

	2.19	“Plan” means this Trex Company, Inc. 2014 Stock Incentive Plan, which amends and restates the Trex Company, Inc. 2005 Stock Incentive Plan, as may be further amended from time to time. 

 

	2.20	“Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act. 

  

	2.21	“Restricted Period” means the period during which Restricted Stock or Restricted Stock Units are subject to restrictions or conditions pursuant to Section 11.2 hereof. 

 

	2.22	“Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 11 hereof, that are subject to restrictions and to a risk of forfeiture. 

 

	2.23	“Restricted Stock Unit” means a unit awarded to a Grantee pursuant to Section 11 hereof, which represents a conditional right to receive a share of Stock in the future, and which is subject to
restrictions and to a risk of forfeiture. 

  
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	2.24	“Retirement” means termination of employment with the Company and its Subsidiaries on or after age 65. 

  

	2.25	“Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended. 

  

	2.26	“Service Provider” means a consultant or adviser to the Company, a manager of the Company’s properties or affairs, or other similar service provider or Affiliate of the Company, and employees of any of
the foregoing, as such persons may be designated from time to time by the Committee pursuant to Section 6 hereof. 

  

	2.27	“Stock” means the common stock, par value $0.01 per share, of the Company. 

  

	2.28	“Stock Appreciation Right” or “SAR” means a right granted to a Grantee pursuant to Section 9 hereof. 

  

	2.29	“Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code. 

 

	2.30	“Unrestricted Stock” means an award of Stock granted to a Grantee pursuant to Section 12 hereof. 

  

	3.	ADMINISTRATION OF THE PLAN 

  

	 	3.1	Committee 

 The Committee shall have such powers and authorities related to the
administration of the Plan as are consistent with the Company’s certificate of incorporation, bylaws and applicable law. The Committee shall have full power and authority to take all actions and to make all determinations required or provided
for under the Plan, any Grant or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the
Committee deems to be necessary or appropriate to the administration of the Plan, any Grant or any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Committee present at a
meeting or by unanimous consent of the Committee executed in writing in accordance with the Company’s certificate of incorporation, bylaws and applicable law. The interpretation and construction by the Committee of any provision of the Plan,
any Grant or any Award Agreement shall be final and conclusive. As permitted by law, the Committee may delegate its authority under the Plan to a member of the Committee or an executive officer of the Company; provided, however, that, unless
otherwise provided by resolution of the Committee, only the Committee may make a Grant to an executive officer of the Company and establish the number of shares of Stock that may be subject to Grants with respect to any fiscal period. In the absence
of Committee action, the Board is authorized to take any action permitted to be taken by the Committee hereunder. 
  

	 	3.2	Grants. 

 Subject to the other terms and conditions of the Plan, the Committee shall have
full and final authority (i) to designate Grantees, (ii) to determine the types of Grants to be made to a Grantee, (iii) to determine the number of shares of Stock to be subject to a Grant, (iv) to establish the terms and
conditions of each Grant, including, but not limited to, the Option Price of any Option, the nature and duration of any restriction or condition (or provision for lapse thereof, including lapse relating to a change in control of the Company)
relating to the vesting, exercise, transfer or forfeiture of a Grant or the shares of Stock subject thereto, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options, (v) to prescribe the form of each
Award Agreement evidencing a Grant, and (vi) to make Grants alone, in addition to, or in tandem with, any other Grant or any other award granted under another plan of the Company or a Subsidiary. Such authority specifically includes the
authority, in order to effectuate the purposes of the Plan but without amending the Plan, to modify Grants to eligible individuals who are foreign nationals or are individuals who are employed outside the United States to recognize differences in
local law, tax policy or custom. As a condition to any subsequent Grant, the Committee shall have the right, at its discretion, to require Grantees to return to the Company any Grants previously awarded under the Plan. Subject to the terms and
conditions of the Plan, any such subsequent Grant shall be upon such terms and conditions as are specified by the Committee at the time the subsequent Grant is made. 

  
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 The Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized
by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any non-competition agreement, any agreement prohibiting solicitation of employees or clients of the
Company or any affiliate thereof or any confidentiality obligation with respect to the Company or any affiliate thereof or otherwise in competition with the Company, to the extent specified in such Award Agreement applicable to the Grantee.
Furthermore, the Company may annul a Grant if the Grantee is an employee of the Company or an affiliate thereof and is terminated ‘‘for cause’’ as defined in the applicable Award Agreement. The Committee may permit or require the
deferral of any award payment, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or dividend equivalents, including converting such credits into deferred Stock
equivalents. 
 Except as provided in Section 16 hereof, the terms of outstanding Grants may not be amended to reduce the exercise
price of outstanding Options or SARs, and outstanding Options or SARs may not be cancelled, exchanged, repurchased or surrendered in exchange for cash, other Grants, or Options or SARs with an exercise price that is less than the exercise price of
the original Options or SARs, without stockholder approval. 
  

	 	3.3	No Liability. 

 No member of the Board or of the Committee shall be liable for any action
or determination made in good faith with respect to the Plan or any Grant or Award Agreement. 
  

	 	3.4	Applicability of Rule 16b-3. 

 Those provisions
of the Plan that make express reference to Rule 16b-3 under the Exchange Act shall apply only to Reporting Persons. 
  

	 	3.5	Termination of Employment or Other Relationship. 

 (i) Whether a
termination of a Grantee’s employment or other relationship with the Company and its Subsidiaries shall have occurred and whether such termination is by reason of Disability shall be determined by the Committee, whose determination shall be
final and conclusive. 
 (ii) Whether a leave of absence or leave on military or government service shall constitute a
termination of employment or other relationship for purposes of the Plan shall be determined by the Committee, whose determination shall be final and conclusive. 

(iii) For purposes of the Plan, a termination of employment or other relationship shall not be deemed to occur if the Grantee
is immediately thereafter employed with the Company, a Subsidiary or a Service Provider, or is engaged as a Service Provider or an Outside Director. 
  

	4.	STOCK SUBJECT TO THE PLAN 

  

	 	4.1	Aggregate Limitation. 

 (i) Effective as of a two-for-one stock split of the Stock of the Company (in the form of a stock dividend) on June 18, 2018, and subject to adjustment as provided in Section 16 hereof,
the aggregate number of shares of Stock available for issuance under the Plan pursuant to Options or other Grants shall be twelve million eight hundred and forty thousand (12,840,000) Shares. Shares may be authorized but unissued shares, treasury
shares or issued and outstanding shares that are purchased in the open market. 
 (ii) Any shares of Stock granted under the
Plan which are forfeited to the Company because of the failure to meet an award contingency or condition shall again be available for issuance pursuant to new awards granted under the Plan. Any shares of Stock covered by an award (or portion of an
award) granted under the Plan which are forfeited or canceled, expire or are settled in cash, or are withheld by the Company to cover withholding taxes (as provided in Section 19), shall be deemed not to have been issued for purposes of
determining the maximum number of shares of Stock available for issuance under the Plan. 

  
 -4- 

 (iii) If any Option is exercised by tendering shares of Stock, by withholding
shares of Stock subject to the Option being exercised, by tendering or withholding shares of Stock, either actually or by attestation, to the Company as full or partial payment in connection with the exercise of an Option or a stock option under any
prior plan of the Company as hereinabove described, only the number of shares of Stock issued net of the shares of Stock tendered or withheld shall be deemed issued for purposes of determining the maximum number of shares of Stock available for
issuance under the Plan. In the case of a SAR, only the actual number of shares of Stock issued upon exercise of the SAR shall be deemed issued for purposes of determining the maximum number of shares of Stock available for issuance under the Plan.
Shares of Stock issued under the Plan through the settlement, assumption or substitution of outstanding awards or obligations to grant future awards resulting from the acquisition of another entity shall not reduce the maximum number of shares
available for issuance under the Plan. 
 (iv) The number of shares of Stock reserved under this Section 4 shall be
increased by the number of any shares of Stock that are repurchased by the Company with Option Proceeds (as defined herein) in respect of the exercise of an Option; provided, however, that the number of shares of Stock contributed to the number of
shares of Stock reserved under this Section 4 in respect of the use of Option Proceeds for repurchase shall not be greater than the number obtained by dividing the amount of such Option Proceeds by the Fair Market Value on the date of exercise
of the applicable Option. “Option Proceeds” means, with respect to an Option, the sum of (x) the Option Price paid in cash, if any, to purchase shares of Stock under such Option, plus (y) the value of all federal, state and local
tax deductions to which the Company is entitled with respect to the exercise of such Option, determined using the highest Federal tax rate applicable to corporations and a blended tax rate for state and local taxes based on the jurisdictions in
which the Company does business and giving effect to the deduction of state and local taxes for Federal tax purposes. 
 (v)
The number of shares of Stock available for grant as incentive stock options shall not exceed twelve million eight hundred and forty thousand (12,840,000), subject to adjustment as provided in Section 16 hereof, and shall not be increased by
reason of the application of subsection (iii) or (iv) of this Section 4.1. 
  

	 	4.2	Application of Aggregate Limitation. 

 The Committee may adopt reasonable counting
procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares of Stock
previously counted in connection with a Grant. 
  

	 	4.3	Per-Grantee Limitation. 

 During any time when
the Company has a class of equity security registered under Section 12 of the Exchange Act: 
 (i) no person eligible
for a Grant under Section 6 hereof may be awarded Options and SARs under the Plan exercisable for greater than six hundred thousand (600,000) shares of Stock in any single calendar year, except that in the case of a newly hired employee, such
limit shall be one million two hundred thousand (1,200,000) shares of Stock (in each case, subject to adjustment as provided in Section 16 hereof); and 

(ii) the maximum number of shares of Restricted Stock or Unrestricted Stock that are earned based on achievement of performance
objectives that may be awarded under the Plan (including for this purpose any shares of Stock represented by Restricted Stock Units) to any person eligible for a Grant under Section 11 hereof is three hundred thousand (300,000) shares of Stock
in any single calendar year, except that in the case of a newly hired employee, such limit shall be six hundred thousand (600,000) shares of Stock (in each case, subject to adjustment as provided in Section 16 hereof). 

  
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	5.	EFFECTIVE DATE AND TERM OF THE PLAN 

  

	 	5.1	Effective Date. 

 The Plan as herein amended and restated was approved by the Board on
February 19, 2014 and shall be effective as of the date the Plan is approved by the Company’s stockholders (the “Effective Date”). Until such Effective Date, the terms of the Plan prior to its amendment and restatement herein
(known as the “Trex Company, Inc. 2005 Stock Incentive Plan”) shall remain in effect. The approval of the Plan as herein amended and restated by the Board and stockholders shall have no effect on Grants made under the Plan prior to the
Effective Date. 
  

	 	5.2	Term. 

 The Plan shall expire on the tenth anniversary of the Effective Date. 

 

	6.	PERMISSIBLE GRANTEES 

  

	 	6.1	Employees and Service Providers. 

 Subject to the provisions of Section 6.3 hereof,
Grants may be made under the Plan to any employee of the Company or any Subsidiary, including any such employee who is an officer or director of the Company, to an Outside Director, to a Service Provider or employee of a Service Provider providing,
or who has provided, services to the Company or any Subsidiary, and to any other individual whose participation in the Plan is determined by the Committee to be in the best interests of the Company, as the Committee shall determine and designate
from time to time. 
  

	 	6.2	Multiple Grants. 

 An eligible person may receive more than one Grant, subject to such
restrictions as are provided herein. 
  

	 	6.3	Limitations on Grants of Incentive Stock Options. 

 An Option shall constitute an
Incentive Stock Option only (i) if the Grantee of such Option is an employee of the Company or any Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the
aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan
and all other plans of the Grantee’s employer and its affiliates) does not exceed one hundred thousand dollars ($100,000). This limitation shall be applied by taking Options into account in the order in which they were granted. 

 

	7.	AWARD AGREEMENT 

 Each Grant pursuant to the Plan shall be evidenced by an Award
Agreement, in such form or forms as the Committee shall from time to time determine. Award Agreements issued from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan. Each Award
Agreement evidencing a Grant of Options shall specify whether such Options are intended to be non-qualified stock options or Incentive Stock Options, and in the absence of such specification such options shall
be deemed non-qualified stock options. 
  

	8.	OPTIONS 

  

	 	8.1	Option Price. 

 The Option Price of each Option shall be no less than the Fair Market
Value of a share of Stock on the date of grant and stated in the Award Agreement evidencing such Option; provided, however, that in the event that a Grantee would otherwise be ineligible to receive an Incentive Stock Option by reason of the
provisions of Sections 422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent (10%) of the Company’s outstanding shares of Stock), the Option Price of an Option granted to such Grantee that is intended to be an
Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 

  
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	 	8.2	Vesting. 

 Subject to Sections 8.3 and 16 hereof, each Option granted under the Plan
shall become exercisable at such times and under such conditions as shall be determined by the Committee and stated in the Award Agreement, provided, however, that subject to earlier vesting as otherwise provided herein or except as otherwise
specifically provided by the Committee in an Award Agreement, vesting shall occur over a minimum of a three (3) year period. For purposes of this Section 8.2, fractional numbers of shares of Stock subject to an Option shall be rounded down
to the next nearest whole number. 
  

	 	8.3	Option Term. 

 Each Option granted under the Plan shall terminate, and all rights to
purchase shares of Stock thereunder shall cease, upon the expiration of ten (10) years (eleven (11) years if the Grantee shall terminate employment or other service due to death in the tenth year of the Option term) from the date such
Option is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and thereafter stated in the Award Agreement relating to such Option; provided, however, that in the event
that the Grantee would otherwise be ineligible to receive an Incentive Stock Option by reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent (10%) of the outstanding shares of Stock),
an Option granted to such Grantee that is intended to be an Incentive Stock Option shall not be exercisable after the expiration of five (5) years from its date of grant. 

 

	 	8.4	Termination of Employment or Other Relationship for a Reason Other than Retirement, Death or Disability. 

Unless otherwise provided by the Committee, upon the termination of a Grantee’s employment or other relationship with the Company and its
Subsidiaries other than by reason of death, Disability or Retirement, any Option or portion thereof held by such Grantee that has not vested in accordance with the provisions of Section 8.2 hereof shall terminate immediately, and any Option or
portion thereof that has vested in accordance with the provisions of Section 8.2 hereof but has not been exercised shall terminate at the close of business on the 90th day following the
Grantee’s termination of employment or other relationship (or, if such 90th day is a Saturday, Sunday or holiday, at the close of business on the next preceding day that is not a Saturday, Sunday or holiday). Upon termination of an Option or
portion thereof, the Grantee shall have no further right to purchase shares of Stock pursuant to such Option or portion thereof. 
  

	 	8.5	Rights in the Event of Death. 

 Unless otherwise provided by the Committee, if a Grantee
dies while employed by or providing services to the Company or its Subsidiaries, all Options granted to such Grantee that have not previously terminated shall fully vest on the date of death, and the executors or administrators or legatees or
distributees of such Grantee’s estate shall have the right, at any time within five (5) years after the date of such Grantee’s death and prior to termination of the Option pursuant to Section 8.3 hereof, to exercise any Option
held by such Grantee at the date of such Grantee’s death. 
  

	 	8.6	Rights in the Event of Disability. 

 Unless otherwise provided by the Committee, if a
Grantee’s employment or other relationship with the Company or its Subsidiaries is terminated by reason of the Disability of such Grantee, such Grantee’s Options that have not previously terminated shall fully vest, and shall be
exercisable for a period of five (5) years after such termination of employment or other relationship, subject to earlier termination of the Option as provided in Section 8.3 hereof. 

  
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	 	8.7	Rights in the Event of Retirement. 

 Unless otherwise provided by the Committee, if a
Grantee’s employment or other relationship with the Company is terminated by reason of the Grantee’s Retirement, all Options granted to such Grantee that have not previously terminated shall fully vest on the date of Retirement, and the
Grantee shall have the right, at any time within five (5) years after the date of such Grantee’s Retirement and prior to termination of the Option pursuant to Section 8.3 hereof, to exercise any Option held by such Grantee at the date
of such Grantee’s Retirement. 
  

	 	8.8	Limitations on Exercise of Option. 

 Notwithstanding any other provision of the Plan, in
no event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by the stockholders of the Company as provided herein, or after ten (10) years following the date upon which the Option is granted (except as
provided in Section 8.3 hereof in the case of death of the Grantee), or after the occurrence of an event referred to in Section 16 hereof which results in termination of the Option. 

 

	 	8.9	Method of Exercise. 

 An Option that is exercisable may be exercised by the
Grantee’s delivery to the Company of written notice of exercise on any business day, at the Company’s principal office, addressed to the attention of the Committee. Such notice shall specify the number of shares of Stock with respect to
which the Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares of Stock for which the Option is being exercised. The minimum number of shares of Stock with respect to which an Option may be
exercised, in whole or in part, at any time shall be the lesser of (i) one hundred (100) shares or such lesser number set forth in the applicable Award Agreement and (ii) the maximum number of shares of Stock available for purchase
under the Option at the time of exercise. Payment of the Option Price for the shares of Stock purchased pursuant to the exercise of an Option shall be made (i) in cash or in cash equivalents acceptable to the Company; (ii) to the extent
permitted by law and at the Committee’s discretion, through the actual or constructive tender to the Company of shares of Stock, which shares of Stock, if acquired from the Company, shall have been held for at least six months prior to such
tender if necessary to avoid negative accounting treatment (or such shorter period as the Committee may approve) and which shall be valued, for purposes of determining the extent to which the Option Price has been paid thereby, at their Fair Market
Value on the date of exercise; or (iii) to the extent permitted by law and at the Committee’s discretion, by a combination of the methods described in clauses (i) and (ii) or any other method permitted by law that is approved by the
Committee. An attempt to exercise any Option granted hereunder other than as set forth above shall be invalid and of no force and effect. 
  

	 	8.10	Rights as a Stockholder; Dividend Equivalents. 

 Unless otherwise stated in the
applicable Award Agreement, an individual holding or exercising an Option shall have none of the rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to
direct the voting of the subject shares of Stock) until the shares of Stock covered thereby are fully paid and issued to such individual. Except as provided in Section 16 hereof, no adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date of such issuance. However, the Committee may, on such conditions as it deems appropriate, provide that a Grantee will receive a benefit in lieu of cash dividends that would have been payable on
any or all shares of Stock subject to the Grant if such shares of Stock had been outstanding. Without limitation, the Committee may provide for payment to the Grantee of amounts representing such dividends, either currently or in the future, or for
the investment of such amounts on behalf of the Grantee. 
  

	 	8.11	Delivery of Stock Certificates. 

 Promptly after the exercise of an Option by a Grantee
and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a Stock certificate or certificates evidencing such Grantee’s ownership of the shares of Stock subject to the Option. Notwithstanding any other
provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for the delivery of stock certificates through the use of book-entry. 

  
 -8- 

	9.	STOCK APPRECIATION RIGHTS 

  

	 	9.1	SAR Price. 

 A SAR shall confer on the Grantee a right to receive, upon exercise thereof,
the excess of (x) the Fair Market Value of one share of Stock on the date of exercise over (y) the grant price of the SAR, as determined by the Committee. The grant price of a SAR shall not be less than the Fair Market Value of a share of
Stock on the Grant Date. 
  

	 	9.2	Vesting, and Terms and Conditions Governing SARs. 

 Subject to Sections 8.3 and 16
hereof, the Committee shall determine the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including exercise based on achievement of performance objectives or future service requirements), the
time or times at which and the circumstances under which a SAR shall cease to be exercisable, the method of exercise, the method of settlement, the form of consideration payable in settlement, whether or not a SAR shall be in tandem or in
combination with any other Grant, and any other terms and conditions of any SAR provided, however, that subject to earlier vesting as otherwise provided herein, or except as otherwise specifically provided by the Committee in an Award Agreement,
vesting shall occur over a minimum of a three (3) year period. 
  

	 	9.3	SAR Term 

 Each SAR granted under the Plan shall terminate upon the expiration of ten
(10) years (eleven (11) years if the Grantee shall terminate employment or other service due to death in the tenth (10th) year of the SAR term) from the date such SAR is granted, or
under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and thereafter stated in the Award Agreement relating to such SAR. 

 

	 	9.4	Termination of Employment or Other Relationship for a Reason Other than Retirement, Death or Disability. 

Unless otherwise provided by the Committee, upon the termination of a Grantee’s employment or other relationship with the Company and its
Subsidiaries other than by reason of death, Disability or Retirement, any SAR or portion thereof held by such Grantee that has not vested shall terminate immediately, and any SAR or portion thereof that has vested but has not been exercised shall
terminate at the close of business on the 90th day following the Grantee’s termination of employment or other relationship (or, if such 90th day is a Saturday, Sunday or holiday, at the close of business on the next preceding day that is not a
Saturday, Sunday or holiday). 
  

	 	9.5	Rights in the Event of Death. 

 Unless otherwise provided by the Committee, if a Grantee
dies while employed by or providing services to the Company or its Subsidiaries, all SARs granted to such Grantee that have not previously terminated shall fully vest on the date of death, and the executors or administrators or legatees or
distributees of such Grantee’s estate shall have the right, at any time within five (5) years after the date of such Grantee’s death and prior to termination of the SAR pursuant to Section 9.2 hereof, to exercise any SAR held by
such Grantee at the date of such Grantee’s death. 
  

	 	9.6	Rights in the Event of Disability. 

 Unless otherwise provided by the Committee, if a
Grantee’s employment or other relationship with the Company is terminated by reason of the Disability of such Grantee, such Grantee’s SARs that have not previously terminated shall fully vest, and shall be exercisable for a period of five
(5) years after such termination of employment or other relationship, subject to earlier termination of the SAR as provided in Section 9.2 hereof. 

  
 -9- 

	 	9.7	Rights in the Event of Retirement. 

 Unless otherwise provided by the Committee, if a
Grantee’s employment or other relationship with the Company or its Subsidiaries is terminated by reason of the Grantee’s Retirement, all SARs granted to such Grantee that have not previously terminated shall fully vest on the date of
Retirement, and the Grantee shall have the right, at any time within five (5) years after the date of such Grantee’s Retirement and prior to termination of the SAR pursuant to Section 9.2 hereof, to exercise any SAR held by such
Grantee at the date of such Grantee’s Retirement. 
  

	 	9.8	Limitations on Exercise of SAR. 

 Notwithstanding any other provision of the Plan, in no
event may any SAR be exercised, in whole or in part, prior to the date the Plan is approved by the stockholders of the Company as provided herein, or after ten (10) years following the date upon which the SAR is granted (except as provided in
Section 9.3 hereof in the case of death of the Grantee), or after the occurrence of an event referred to in Section 16 hereof which results in termination of the SAR. 

 

	10.	TRANSFERABILITY OF OPTIONS AND SARS 

  

	 	10.1	General Rule 

 Except as provided in Section 10.2 hereof, during the lifetime of a
Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the Grantee’s guardian or legal representative) may exercise a SAR or Option. Except as provided in Section 10.2 hereof, no Option or SAR shall be assignable
or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution. 
  

	 	10.2	Family Transfers. 

 To the extent permitted by the Committee and under such rules and
conditions as may be imposed by the Committee, a Grantee may transfer all or part of an Option that is not an Incentive Stock Option or a SAR to (i) any Immediate Family Member, (ii) a trust or trusts for the exclusive benefit of any
Immediate Family Member or (iii) a partnership or limited liability company in which Immediate Family Members are the only partners or members, provided that (x) there may be no consideration for any such transfer, and (y) subsequent
transfers of transferred Options or SARs or transfers of an interest in a trust, partnership, or limited liability company to which an Option or SAR has been transferred are prohibited except those in accordance with this Section 10.2 or by
will or the laws of descent and distribution. Following such transfer, any such Option or SAR shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer, provided that, for purposes of this
Section 10.2, the term ‘‘Grantee’’ shall be deemed to refer to the transferee. The events of termination of employment or other relationship referred to in Sections 8.4 through 8.7 and Sections 9.4 through 9.7 hereof, or any
agreement between the Grantee and the Company, shall continue to be applied with respect to the original Grantee, following which the Option or SAR shall be exercisable by the transferee only to the extent and for the periods specified in
Section 8.4, 8.5, 8.6 or 8.7 hereof in the case of Options and Section 9.4, 9.5, 9.6 or 9.7 hereof in the case of SARs. 
  

	11.	RESTRICTED STOCK 

  

	 	11.1	Grant of Restricted Stock or Restricted Stock Units. 

 The Committee from time to time
may grant Restricted Stock or Restricted Stock Units to persons eligible to receive Grants under Section 6 hereof, subject to such restrictions, conditions and other terms as the Committee may determine. 

  
 -10- 

	 	11.2	Restrictions. 

 At the time a Grant of Restricted Stock or Restricted Stock Units is
made, the Committee shall establish a period of time (the ‘‘Restricted Period’’) applicable to such Restricted Stock or Restricted Stock Units. Unless the Grant is being made in consideration of compensation due under another
plan, or unless vesting is subject to performance, or subject to earlier vesting as otherwise provided herein, or except as otherwise specifically provided by the Committee in an Award Agreement, the Restricted Period will be a minimum of
three (3) years (subject to the accelerated vesting provisions of Section 16 hereof). Each Grant of Restricted Stock or Restricted Stock Units may be subject to a different Restricted Period. At the time a Grant of Restricted Stock or
Restricted Stock Units is made, the Committee may, in its sole discretion, prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the satisfaction of corporate or individual performance objectives,
which may be applicable to all or any portion of the Restricted Stock or Restricted Stock Units. Such performance objectives shall be established in writing by the Committee by not later than the 90th day of the period of service to which such
performance objectives relate and while the outcome is substantially uncertain. Performance objectives may be stated either on an absolute or relative basis and may be based on any of the following criteria: revenue, growth in revenue (in general,
by type of product and/or by type of customer), gross margin, gross profit, operating margin, operating earnings, net income, earnings before interest, taxes, depreciation and amortization (“EBITDA”), earnings before interest and taxes
(“EBIT”), earnings per share (“EPS”), earnings growth, cash flow, growth in assets, return on assets, return on equity, return on capital, retained earnings, total shareholder return (“TSR”), economic value added
(“EVA”), market share, stock price, completion of acquisitions, completion of divestitures and asset sales, cost or expense reductions, introduction or conversion of product brands, achievement of specified management information systems
objectives, and any combination of the foregoing performance objectives (e.g., cash flow return on capital), provided that the performance period may be no less than one (1) year. Performance objectives may include positive results, maintaining
the status quo or limiting economic losses. Neither Restricted Stock nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other
restrictions prescribed by the Committee with respect to such Restricted Stock or Restricted Stock Units. 
  

	 	11.3	Restricted Stock Certificates. 

 The Company shall issue, in the name of each Grantee to
whom Restricted Stock has been granted, Stock certificates representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Committee may provide in an Award Agreement
that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be
delivered to the Grantee, provided, however, that such certificates shall bear a legend or legends complying with the applicable securities laws and regulations and making appropriate reference to the restrictions imposed under the Plan and the
Award Agreement. 
  

	 	11.4	Rights of Holders of Restricted Stock. 

 Unless the Committee otherwise provides in an
Award Agreement, holders of Restricted Stock shall have the right to vote such shares of Stock and the right to receive any dividends declared or paid with respect to such shares of Stock. The Committee may provide that any dividends paid on
Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions applicable to such Restricted Stock. All distributions, if any, received by a Grantee with respect to Restricted
Stock as a result of any stock split, stock dividend, combination of shares or other similar transaction shall be subject to the restrictions applicable to the original Grant. 

 

	 	11.5	Rights of Holders of Restricted Stock Units. 

 Unless the Committee otherwise provides in
an Award Agreement, holders of Restricted Stock Units shall have no rights as stockholders of the Company. The Committee may provide in an Award Agreement evidencing a Grant of Restricted Stock Units that the holder of such Restricted Stock Units
shall be entitled to receive, upon the Company’s payment of a cash dividend on its outstanding shares of Stock, a cash payment for each Restricted Stock Unit held equal to the per-share dividend paid on
the shares of Stock. Such Award Agreement may also provide that such cash payment will be deemed reinvested in additional Restricted Stock Units at a price per unit equal to the Fair Market Value of a share on the date that such dividend is paid.

  
 -11- 

	 	11.6	Termination of Employment or Other Relationship for a Reason Other than Death, Disability or Retirement. 

Unless otherwise provided by the Committee, upon the termination of a Grantee’s employment or other relationship with the Company and its
Subsidiaries, in either case other than, in the case of individuals, by reason of death, Disability or Retirement, any Restricted Stock or Restricted Stock Units held by such Grantee that have not vested, or with respect to which all applicable
restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of Restricted Stock or Restricted Stock Units, the Grantee shall have no further rights with respect to such Grant, including, but not limited to,
any right to vote Restricted Stock or any right to receive dividends with respect to Restricted Stock or Restricted Stock Units. 
  

	 	11.7	Rights in the Event of Death. 

 Unless otherwise provided by the Committee, if a Grantee
dies while employed by the Company or its Subsidiaries or while serving as a Service Provider, all Restricted Stock or Restricted Stock Units granted to such Grantee shall, if vesting is based solely on continued service, fully vest on the date of
death, or if vesting is based in whole or part on performance, shall be immediately forfeited to the extent not yet vested. Upon such vesting, the shares of Stock represented thereby shall be deliverable in accordance with the terms of the Plan to
the executors, administrators, legatees or distributees of the Grantee’s estate. 
  

	 	11.8	Rights in the Event of Disability. 

 Unless otherwise provided by the Committee, if a
Grantee’s employment or other relationship with the Company or its Subsidiaries or a Service Provider, or service as a Service Provider, is terminated by reason of the Disability of such Grantee, such Grantee’s then unvested Restricted
Stock or Restricted Stock Units shall, if vesting is based solely on continued service, fully vest and be paid on the date of termination, or if vesting is based in whole or part on performance, shall be immediately forfeited to the extent not yet
vested. 
  

	 	11.9	Rights in the Event of Retirement. 

 Unless otherwise provided by the Committee, if a
Grantee’s employment with the Company or its Subsidiaries is terminated by reason of Retirement, all Restricted Stock or Restricted Stock Units granted to such Grantee shall, if vesting is based solely on continued service, fully vest and be
paid on the date of termination, or if vesting is based in whole or part on performance, shall be immediately forfeited to the extent not yet vested. 
  

	 	11.10	Delivery of Shares and Payment Therefor. 

 Upon the expiration or termination of the
Restricted Period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to Restricted Stock or Restricted Stock Units shall lapse, and, unless otherwise provided in the Award Agreement, upon payment by
the Grantee to the Company, in cash or by check, of the greater of (i) the aggregate par value of the shares of Stock represented by such Restricted Stock or Restricted Stock Units or (ii) the purchase price, if any, specified in the Award
Agreement relating to such Restricted Stock or Restricted Stock Units, a certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be. 

 

	12.	UNRESTRICTED STOCK 

 The Committee may, in its sole discretion, grant Stock (or sell
Stock at par value or such other higher purchase price determined by the Committee) free of restrictions other than those required under federal or state securities laws (“Unrestricted Stock”) to persons eligible to receive grants under
Section 6 hereof. Unrestricted Stock may be granted or sold as described in the preceding sentence in respect of past services or other valid consideration in lieu of any cash compensation due to such Grantee, or in satisfaction of a
performance share award payable in Stock and earned based on the satisfaction of one or more of the performance objectives enumerated in Section 11.2 hereof with respect to Restricted Stock and Restricted Stock Units. 

  
 -12- 

	13.	PARACHUTE LIMITATIONS 

 If the Grantee is a “disqualified individual” (as
defined in Section 280G(c) of the Code), any Option, Restricted Stock, Restricted Stock Unit or SAR and any other right to receive any payment or benefit under the Plan shall not vest or become exercisable (i) to the extent that the right
to vest or any other right to any payment or benefit, taking into account all other rights, payments or benefits to or for the Grantee, would cause any payment or benefit to the Grantee under the Plan to be considered a “parachute payment”
within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts
received by the Grantee from the Company under any Award Agreements, the Plan, and all other rights, payments or benefits to or for the Grantee would be less than the maximum after-tax amount that could be
received by the Grantee without causing the payment or benefit to be considered a Parachute Payment. In the event that, but for the provisions of this Section 13, the Grantee would be considered to have received a Parachute Payment under any
Award Agreements that would have the effect of decreasing the after-tax amount received by the Grantee as described in clause (ii) of the preceding sentence, then the Grantee shall have the right, in the
Grantee’s sole discretion, to designate any rights, payments or benefits under any Award Agreements, the Plan, any other agreements and any benefit arrangements to be reduced or eliminated so as to avoid having the payment or benefit to the
Grantee under any Award Agreements be deemed to be a Parachute Payment. The Award Agreement, or any agreement entered into by the Grantee with the Company before or after the date of grant, may provide for different treatment of Grants than is set
forth in this Section 13 in the event that the Grantee is a disqualified individual. 
  

	14.	REQUIREMENTS OF LAW 

  

	 	14.1	General. 

 The Company shall not be required to sell or issue any shares of Stock under
any Grant if the sale or issuance of such shares of Stock would constitute a violation by the Grantee, any other person exercising a right emanating from such Grant, or the Company of any provision of any law or regulation of any governmental
authority, including, without limitation, any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares of Stock subject to a Grant
upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares of Stock hereunder, no shares of Stock may be issued or sold to the Grantee
or any other person exercising a right emanating from such Grant unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused
thereby shall in no way affect the date of termination of the Grant. Without limiting the generality of the foregoing, upon the exercise of any Option or any SAR that may be settled in shares of Stock or the delivery of any Restricted Stock or
shares of Stock underlying Restricted Stock Units, unless a registration statement under the Securities Act is in effect with respect to the shares of Stock covered by such Grant, the Company shall not be required to sell or issue such shares of
Stock unless the Committee has received evidence satisfactory to it that the Grantee or any other person exercising a right emanating from such Grant may acquire such shares of Stock pursuant to an exemption from registration under the Securities
Act. Any such determination by the Committee shall be final, binding and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to
take any affirmative action in order to cause the exercise of an Option or a SAR or the issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly
imposes the requirement that an Option (or SAR that may be settled in shares of Stock) shall not be exercisable until the shares of Stock covered by such Option (or SAR) are registered or are exempt from registration, the exercise of such Option (or
SAR) under circumstances in which the laws of such jurisdiction apply shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 

 

	 	14.2	Rule 16b-3. 

 During any time when the Company
has a class of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Grants pursuant to the Plan and the exercise of Options and SARs granted hereunder will qualify for the exemption provided by
Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Committee does not comply with the requirements of Rule 16b-3, such
provision or action shall be deemed inoperative to the extent permitted by law and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or
replaced, the Board may exercise its discretion to modify the Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 

  
 -13- 

	15.	AMENDMENT AND TERMINATION OF THE PLAN 

 The Board may, at any time and from time to time,
amend, suspend or terminate the Plan as to any shares of Stock as to which Grants have not been made; provided, that, any amendment that materially increases the benefits available under the Plan or which is required to be submitted for stockholder
approval by applicable law, rule or regulation (including, without limitation, rules of the exchange on which the Stock is traded) shall be adopted subject to stockholder approval. Except as permitted under this Section 15 or Section 16
hereof, no amendment, suspension or termination of the Plan shall, without the consent of the Grantee, alter or impair rights or obligations under any Grant theretofore awarded under the Plan. 

 

	16.	EFFECT OF CHANGES IN CAPITALIZATION 

  

	 	16.1	Changes in Stock. 

 Subject to Section 16.2 hereof, in the event of any merger,
reorganization, consolidation, recapitalization, separation, liquidation, stock dividend, spin-off, split-up, share combination or other change in the corporate
structure of the Company affecting the shares of Stock, (a) such adjustment shall be made in the number and class of shares which may be delivered under Section 4 hereof and the Grant limits under Section 4 hereof, and in the number
and class of or price of shares subject to outstanding Grants as may be determined to be appropriate and equitable by the Board or the Committee, in its sole discretion, to prevent dilution or enlargement of existing rights; and (b) the Board
or the Committee or, if another legal entity assumes the obligations of the Company hereunder, the board of directors, compensation committee or similar body of such other legal entity shall either (i) make appropriate provision for the
protection of outstanding Grants by the substitution on an equitable basis of appropriate equity interests or awards similar to the Grants, provided that the substitution neither enlarges nor diminishes the value and rights under the Grants, or
(ii) upon written notice to the Grantees, provide that Grants shall be exercised, distributed, canceled or exchanged for value pursuant to such terms and conditions (including the waiver of any existing terms or conditions) as shall be
specified in the notice. Any adjustment of an Incentive Stock Option under this Section 16.1 shall be made in such a manner so as not to constitute a “modification” within the meaning of Section 424(h)(3) of the Code. The
conversion of any convertible securities of the Company shall not be treated as a change in the corporate structure of the Company affecting the shares of Stock. Subject to any contrary language in an Award Agreement evidencing a Grant of Restricted
Stock, any restrictions applicable to such Restricted Stock shall apply as well to any replacement shares received by the Grantee as a result of the merger, reorganization or other transaction referred to in this Section 16.1. 

 

	 	16.2	Reorganization, Sale of Assets or Sale of Stock. 

 Upon the dissolution or liquidation of
the Company or upon a merger, consolidation or reorganization of the Company with one or more other entities in which the Company is not the surviving entity, or upon a sale of substantially all of the assets of the Company to another entity, or
upon any transaction (including, without limitation, a merger or reorganization in which the Company is the surviving entity) approved by the Board that results in any person or entity (or person or entities acting as a group or otherwise in
concert) owning eighty percent (80%) or more of the combined voting power of all classes of securities of the Company, (i) all outstanding Restricted Stock and Restricted Stock Units shall be deemed to have vested, and all restrictions and
conditions applicable to such Restricted Stock and Restricted Stock Units shall be deemed to have lapsed, immediately prior to the occurrence of such transaction, and (ii) all Options and SARs outstanding hereunder shall become immediately
exercisable for a period of fifteen (15) days immediately prior to the scheduled consummation of such transaction. Any exercise of an Option or SAR during such fifteen (15) day period shall be conditioned upon the consummation of the
transaction and shall be effective only immediately before the consummation of the transaction. 

  
 -14- 

 This Section 16.2 shall not apply to any transaction to the extent that (A) provision
is made in writing in connection with such transaction for the continuation of the Plan or the assumption of the Options, SARs, Restricted Stock and Restricted Stock Units theretofore granted, or for the substitution for such Options, SARs,
Restricted Stock and Restricted Stock Units of new options, stock appreciation rights, restricted stock and restricted stock units covering the stock of a successor entity, or a parent or subsidiary thereof, with appropriate adjustments as to the
number and kinds of shares or units and exercise prices, in which event the Plan and Options, SARs, Restricted Stock and Restricted Stock Units theretofore granted shall continue in the manner and under the terms so provided or (B) a majority
of the full Board determines that such transaction shall not trigger application of the provisions of this Section 16.2 and limited by any “change in control” provision in any employment agreement or Award Agreement applicable to the
Grantee. Upon consummation of any such transaction, the Plan and all outstanding but unexercised Options and SARs shall terminate, except to the extent provision is made in writing in connection with such transaction for the continuation of the Plan
or the assumption of such Options and SARs theretofore granted, or for the substitution for such Options and SARs of new options and stock appreciation rights covering the shares of a successor entity, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kinds of shares or units and exercise prices, in which event the Plan and Options and SARs theretofore granted shall continue in the manner and under the terms so provided. The Board shall send written
notice of an event that will result in such a termination to all individuals who hold Options and SARs not later than the time at which the Company gives notice thereof to its stockholders. 

 

	 	16.3	Adjustments. 

 Adjustments under this Section 16 related to shares of Stock or
securities of the Company shall be made by the Committee, whose determination in that respect shall be final and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from
any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. 
  

	 	16.4	No Limitations on Company. 

 The making of Grants pursuant to the Plan shall not affect
or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, consolidate, dissolve or liquidate, or to sell or transfer all or any part of
its business or assets. 
  

	17.	DISCLAIMER OF RIGHTS 

 No provision in the Plan or in any Grant or Award Agreement shall
be construed to confer upon any individual the right to remain in the employ or service of the Company or any affiliate thereof, or to interfere in any way with any contractual or other right or authority of the Company or Service Provider either to
increase or decrease the compensation or other payments to any individual at any time, or to terminate any employment or other relationship between any individual and the Company or any affiliate thereof. In addition, notwithstanding anything
contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement or employment agreement, no Grant awarded under the Plan shall be affected by any change of duties or position of the Grantee, so long as such Grantee
continues to be a director, officer, consultant or employee of the Company. The obligation of the Company to pay any benefits pursuant to the Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the
manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any participant or
beneficiary under the terms of the Plan. No Grantee shall have any of the rights of a stockholder with respect to the shares of Stock subject to an Option or SAR except to the extent such shares of Stock shall have been issued upon the exercise of
the Option or SAR. 
  

	18.	NONEXCLUSIVITY OF THE PLAN 

 Neither the adoption of the Plan nor the submission of the
Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Committee to adopt such other incentive compensation arrangements (which arrangements may be applicable either
generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Committee in its discretion determines desirable, including, without limitation, the granting of Stock options otherwise than
under the Plan. 

  
 -15- 

	19.	WITHHOLDING TAXES 

 The Company or a Subsidiary, as the case may be, shall have the right
to deduct from payments of any kind otherwise due to a Grantee any federal, state or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to Restricted Stock or Restricted
Stock Units or upon the exercise of an Option or SAR or the grant of Unrestricted Stock. At the time of such vesting, lapse or exercise, the Grantee shall pay to the Company or the Subsidiary, as the case may be, any amount that the Company or the
Subsidiary may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the Subsidiary, which may be withheld by the Company or the Subsidiary, as the case may be, in its sole
discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or the Subsidiary to withhold shares of Stock otherwise issuable to the Grantee or (ii) by delivering to the Company or the
Subsidiary shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such
withholding obligation shall be determined by the Company or the Subsidiary as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this Section 19 may satisfy such
Grantee’s withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirement. 
  

	20.	CAPTIONS 

 The use of captions in the Plan or any Award Agreement is for convenience of
reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 
  

	21.	OTHER PROVISIONS 

 Each Grant awarded under the Plan may contain such other terms and
conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion. 
  

	22.	NUMBER AND GENDER 

 With respect to words used in this Plan, the singular form shall
include the plural form and, the masculine gender shall include the feminine gender, as the context requires. 
  

	23.	SEVERABILITY 

 If any provision of the Plan or any Award Agreement shall be finally
determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any
other jurisdiction. 
  

	24.	GOVERNING LAW 

 The validity and construction of this Plan and the instruments evidencing
the Grants awarded hereunder shall be governed by the laws of the State of Delaware (without giving effect to the choice of law provisions thereof). 
  

	25.	SECTION 409A 

 To the extent that the Committee determines that a Grantee would be
subject to the additional twenty percent (20%) tax imposed on certain deferred compensation arrangements pursuant to Section 409A of Code as a result of any provision of any Grant, such provision shall be deemed amended to the minimum extent
necessary to avoid application of such additional tax. The Committee shall determine the nature and scope of any such amendment. 
 The
Plan, prior to its amendment and restatement herein, was duly adopted and approved by the Board of Directors of the Company on March 12, 1999 and by the stockholders of the Company on April 7, 1999. An amended and restated Plan was
approved by the Board of Directors of the Company on March 8, 2005 and by the stockholders of the Company on April 21, 2005. The Plan was subsequently amended by the Board of Directors of the Company on September 12, 2005,
March 13, 2008, and February 26, 2013, and approved by the stockholders on May 7, 2008. The Plan, as amended and restated herein, was approved by the Board of Directors of the Company on February 19, 2014 and by the stockholders
of the Company on April 30, 2014. The Plan was subsequently amended and restated by the Board of Directors as of May 7, 2014 and May 2, 2018. 

  
 -16-EX-10.2

 Exhibit 10.2 

RETENTION AGREEMENT 

This Retention Agreement is entered into as of May 2, 2018, by and between
                , an individual (“Executive”) and Trex Company, Inc., a Delaware corporation (the “Company”). 

Recitals 
 Executive is an officer of the
Company. The Company has determined that it is in the best interests of the Company and its stockholders that Executive’s employment with the Company be assured for a certain period of time. Therefore, the Company and Executive desire to set
forth their agreement pursuant to which Executive will receive certain benefits from the Company under certain circumstances. 
 Agreement

 Now, therefore, in consideration of the mutual covenants contained herein, the parties hereby agree as follows: 

1.    Restricted Stock Units. Subject to the vesting conditions set forth in this Agreement, the Company hereby
grants to Executive              restricted stock units (“RSUs”) relating to its common stock, $.01 par value (the “Stock”) pursuant to the Trex Company, Inc. 2014 Stock
Incentive Plan (the “Plan”). In the event that Executive is actively employed by the Company from the date of this Agreement through                 , the RSUs
shall become fully vested on such date. Each RSU represents the right to receive one share of Stock, subject to the terms and conditions set forth in this Agreement. 

2.    Cash Payment. In the event that Executive is actively employed by the Company from the date of this Agreement
through                 , the Company shall pay Executive the amount of $         (the “Cash Payment”) on such date,
subject to all applicable tax withholdings. 
 3.    Definitions. As used in this Agreement, the following terms
shall have the following definitions: 
 (a) “Cause” means one of the following reasons for which the Executive’s
employment with the Company is terminated: (i) Executive’s willful or grossly negligent misconduct, or subversive, disruptive or insubordinate behavior, that is materially injurious to the Company; (ii) Executive’s embezzlement
or misappropriation of funds or property of the Company; (iii) Executive’s conviction of a felony or the entrance of a plea of guilty or nolo contendere to a felony; (iv) Executive’s conviction of any crime involving fraud,
dishonesty, moral turpitude or breach of trust or the entrance of a plea of guilty or nolo contendere to such a crime; or (v) Executive’s willful failure or refusal by Executive to devote his full business time (other than on account of
disability or approved leave) and attention to the performance of his duties and responsibilities if such breach has not been cured within 15 days after written notice thereof is given to the Executive by the Board. 

(b) “Good Reason” means, without the specific written consent of the Executive, any of the following: (i) a material and
adverse change in Executive’s status or position(s) as an officer or management employee of the Company, including, without limitation, any adverse change in his status or position as an employee of the Company as a result of a material
diminution in his duties or responsibilities (other than, if applicable, any such change directly attributable to the fact that the Company is no longer publicly owned) or the assignment to him of any duties or responsibilities which are materially
inconsistent with such status or position(s) (other than any isolated and inadvertent failure by the Company that is cured promptly upon his giving notice), or any removal of Executive from or any failure to reappoint or reelect him to such
position(s) (except in connection with Executive’s termination other than for Good Reason); (ii) a 10% or greater reduction in Executive’s aggregate base salary and targeted bonus, other than any such reduction proportionately consistent
with a general reduction of pay across the executive staff as a group, as an economic or strategic measure due to poor financial performance by the Company; (iii) the failure by the Company or any successor to continue in effect any material
employee benefit plan (excluding any equity compensation plan) in which the Executive is participating (or plans providing the Executive with similar benefits that are not materially reduced in the aggregate) other than as a result of the normal
expiration of any such plan in accordance with its terms; or the taking of any action, or the failure to act, by the Company or any successor which would adversely affect the Executive’s continued participation in any of such plans on at least
as favorable a basis to him or which would materially reduce his benefits under any of such plans, or (iv) Company’s requiring Executive to be based at an office that is both more than 50 miles from where his office is located and further
from his then current residence. 

 (c)    “Disability” means a Disability within the meaning of
Internal Revenue Code section 409A(a)(2)(C). 
 4.    Early Vesting/Cash Payment. Notwithstanding the provisions
of Sections 1 and 2 above, or the provisions of any other agreement between the parties, upon the occurrence of any of the following events prior to the date set forth in Sections 1 and 2 above, the RSUs shall immediately vest upon such occurrence,
and the Cash Payment shall be made to Executive within 3 days after such occurrence, subject to all applicable tax withholdings: 
 (a)
Executive’s employment is terminated without “Cause” or at the election of Executive for “Good Reason”; or 
 (b)
Executive’s employment is terminated by death or because of “Disability”. 
 If a “Change in Control” (as defined
in Executive’s Change in Control Agreement (“CIC Agreement”) occurs prior to the date set forth in Section 1 above, the RSUs shall immediately vest as provided in such CIC Agreement. 

5.    Forfeiture of Awards. In the event Executive’s employment is terminated for “Cause” or at the
election of Executive for any reason other than “Good Reason” prior to the date set forth in Section 1 and 2 above, Executive shall forfeit the RSUs and Cash Payment, and this Agreement shall immediately terminate. 

6.    Provisions Relating to RSUs. 

(a) Executive’s RSUs may not be transferred, assigned, pledged or hypothecated, whether by operation of law or otherwise, nor may the RSUs
be made subject to execution, attachment or similar process. 
 (b) As soon as practicable following the vesting of the RSUs hereunder, the
Company will issue to Executive a share certificate for the shares of Stock to which such vested RSUs relate. In the alternative, the Company may use the book-entry method of share recordation to indicate Executive’s share ownership. Executive
will have no further rights with regard to a RSU once the share of Stock related to such RSU has been issued. 
 (c) Executive agrees, as a
condition of this grant, that he will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the vesting of RSUs or delivery of Stock acquired under this grant. In the event that the Company determines that
any federal, state, local or foreign tax or withholding payment is required relating to the vesting in RSUs or delivery of shares arising from this grant, the Company shall have the right to require such payments from Executive, withhold shares that
would otherwise have been issued to Executive under this Agreement or withhold such amounts from other payments due to Executive from the Company. 

(d) Except as provided in the following sentence, Executive does not have any of the rights of a shareholder with respect to the RSUs. If,
prior to the vesting date, the Company declares a cash dividend on the Stock, Executive will be credited with dividend equivalents in an amount determined based on the dividends that Executive would have received, had Executive held shares of Stock
equal to the vested number of your RSUs from the date of Executive’s award to the date of the distribution of shares of Stock following the vesting of Executive’s RSUs, and assuming that the dividends were reinvested in Stock (and any
dividends on such shares were reinvested in Stock). Any such dividend equivalents will be subject to the same vesting conditions as the shares represented by Executive’s RSUs and, in the event of vesting of Executive’s RSUs, credited
dividend equivalents will be settled as soon as practicable thereafter in cash. 

  
 -2- 

 (e)    In the event of a stock split, a stock dividend or a similar change in
the Stock, including but not limited to the 2-1 stock split in the form of a stock dividend payable on June 18, 2018 to shareholders of record on May 23, 2018, the number of RSUs covered by this
grant shall be adjusted (and rounded down to the nearest whole number) pursuant to the Plan. Executive’s RSUs shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such
corporate activity. 
 (f)    The Company may choose to deliver certain statutory materials relating to the Plan in
electronic form. By accepting this grant, Executive agrees that the Company may deliver the Plan prospectus and the Company’s annual report to him in an electronic format. Executive may elect to receive paper copies of these documents at any
time. 
 7.    Internal Revenue Code Section 409A and Regulations
(“Section 409A”). To the extent applicable, the Cash Payment and the RSUs granted under this Agreement are intended to comply with Section 409A. The provisions of this paragraph shall qualify and supersede all
other provisions of this Agreement and the Plan as necessary to fulfill the foregoing intent. In furtherance of the foregoing, any Cash Payment or RSUs that accelerate and vest upon a termination of services hereunder and that are otherwise subject
to Section 409A shall accelerate and vest upon such a termination of services solely if such termination constitutes a “separation from service” within the meaning of Section 409A. Additionally, if at the time of any such
separation from service you are entitled to accelerated vesting of any RSUs granted hereunder and are also a “specified employee” (within the meaning of Section 409A and as determined by the Company) and such RSUs granted hereunder
may not be settled without subjecting the Executive to additional tax, interest and/or penalties under Section 409A, then such RSUs shall accelerate and vest upon Executive’s separation from service but shall not settle until the earlier
of (i) Executive’s death or (ii) the first business day of the seventh (7th) month immediately following Executive’s separation from service.

8.    Notices. For purposes of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when hand delivered, sent by overnight courier, or mailed by first-class, registered or certified mail, return receipt requested, postage prepaid, or transmitted by telegram,
telecopy, or telex, addressed, in the case of Executive, to Executive’s address as shown on the Company’s records and, in the case of the Company, to the Company’s principal office, to the attention of the General Counsel, or to such
other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 

9.    Amendment. This Agreement may be amended or modified only by a written instrument executed by both the
Company and Executive. 
 10.    Governing Law. This Agreement shall be construed, interpreted and enforced
as a sealed instrument under and in accordance with the laws of the Commonwealth of Virginia, without reference to the conflicts of laws provisions thereof. Any action, suit or other legal proceeding which is commenced to resolve any matter
arising under or relating to any provision of this Agreement shall be commenced only in a court of the Commonwealth of Virginia (or, if appropriate, a federal court located within Virginia), and the Company and Executive each consents to the
jurisdiction of such a court. 
 11.    Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of both parties and their respective successors and assigns, including any corporation with which or into which the Company may be merged or which may succeed to its assets or business, provided, however, that the obligations of
Executive are personal and shall not be assigned by him. Notwithstanding the foregoing, in the event of Executive’s death, any payments that Executive was otherwise entitled to under this Agreement shall be made to his estate. 

  
 -3- 

 12.     Acknowledgment. Executive states and represents that he
has had an opportunity to fully discuss and review the terms of this Agreement with an attorney. Executive further states and represents that he has carefully read this Agreement, understands the contents herein, freely and voluntarily assents to
all of the terms and conditions hereof, and signs his name of his own free act. The Company represents that it has obtained all necessary consents and approvals to execute this Agreement. 

13.     Miscellaneous. 

(a) No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other
right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion. 

(b) The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or
substance of any section of this Agreement. 
 (c) In case any provision of this Agreement shall be invalid, illegal or otherwise
unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 
 IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year set forth above. 
  

			
	Trex Company, Inc.
		
	By:	 	  

		 	James E. Cline, President and Chief Executive Officer

  
 -4-

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