Document:

EXHIBIT 10.26

 Exhibit 10.26 
 EIGHTH AMENDMENT TO CREDIT AGREEMENT 
 THIS EIGHTH AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”) is dated as of and effective as of this 16th day of March, 2007, by and between TREX COMPANY, INC., a Delaware corporation (sometimes hereinafter referred to herein as “Trex Inc.”), and BRANCH BANKING AND
TRUST COMPANY, a North Carolina state banking corporation, successor by merger to Branch Banking and Trust Company of Virginia (hereinafter referred to herein as the “Bank”). 
 Trex Inc., TREX Company, LLC, a Delaware limited liability company (“TREX LLC”), and the Bank are the original parties to that certain Credit
Agreement dated as of June 19, 2002, as amended by a First Amendment to Credit Agreement dated as of August 29, 2003, as further amended by a Second Amendment to Credit Agreement dated as of September 30, 2004, as further amended by a
Third Amendment to Credit Agreement dated as of March 31, 2005, as further amended by a Fourth Amendment to Credit Agreement dated as of July 25, 2005, as further amended by a Fifth Amendment to Credit Agreement dated as of
December 31, 2005, as further amended by a Sixth Amendment to Credit Agreement dated as of November 9, 2006, as further amended by a Seventh Amendment to Credit Agreement dated as of December 31, 2006 (the “Seventh
Amendment”) (as so amended and as it may hereafter be amended, restated, supplemented, replaced or otherwise modified from time to time, the “Credit Agreement”). Subject to the terms and conditions contained in the Credit Agreement,
the Bank agreed to extend to Trex Inc. and TREX LLC (i) a revolving credit facility, with a letter of credit subfacility, in the aggregate amount of $100,000,000 for working capital financing of Trex Inc.’s and TREX LLC’s accounts
receivable and inventory, to purchase new equipment and/or for other general corporate purposes of Trex Inc. and TREX LLC, (ii) a term loan facility in the amount of $9,570,079.88 to refinance the Winchester Property (as defined in the Credit
Agreement), and (iii) a term loan facility in the amount of $3,029,920.12 to finance existing improvements to the Winchester Property. Effective December 31, 2002, TREX LLC merged with and into Trex Inc., with Trex Inc. being the surviving
entity. As a result of such merger, Trex Inc. is the sole borrower under the Credit Agreement and shall hereinafter sometimes be referred to in this Amendment as the “Borrower.” 
 In connection with and as contemplated in the Seventh Amendment, the Borrower has executed and delivered, to the Bank collateral and other documents
required by the Bank to secure the Revolving Credit Loan Obligations and the obligations of the Borrower under the Note Agreement with a Lien on the Borrower’s Accounts and Inventory. In connection therewith, the Credit Agreement requires
certain additional modifications. 
 Accordingly, the Borrower and the Bank hereby agree as follows: 
 1. Capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings assigned thereto in the Credit Agreement. 

2. Clause 7 of Section 2.01(c)ii. of the Credit Agreement is hereby deleted in its entirety and the following clause is substituted in its place:

 7. the account receivable does not arise out of sales on a bill-and-hold, guaranteed sale, sale or return, sale on approval
or consignment basis (excluding sales pursuant to consignment arrangements with Home Depot U.S.A., Inc., a Delaware corporation (“The Home Depot”), or Lowe’s Companies, Inc., a North Carolina corporation (“Lowe’s”)) and
the account receivable is not subject to any known right of return, set-off or charge-back; 

 3. Clause (viii) of Section 2.01(c)iii. of the Credit Agreement is hereby deleted in its
entirety and the following clause is substituted in its place: 
 (viii) which has not been consigned to any Person other than The Home Depot
or Lowe’s, 
 4. Section 2.01(c)iii. of the Credit Agreement is hereby amended by inserting the following sentence at the end of
such Section: 
 Notwithstanding clause (viii) above, the value of Eligible Inventory (A) consisting of Eligible Inventory consigned
to The Home Depot shall be equal to the lesser of (i) the actual value of the Eligible Inventory consigned to The Home Depot and (ii) $999,999.99, provided that if the value of the Eligible Inventory consigned to The Home Depot is equal to
or greater than $1,000,000 and the Borrower has fully complied with and remains in full compliance with all of the requirements set forth in Sections 4.4(d) and 5.3(a) of the Security Agreement applicable to Inventory consigned to The Home Depot,
sub-clause (ii) shall not apply and (B) consisting of Eligible Inventory consigned to Lowe’s shall be equal to the lesser of (i) the actual value of the Eligible Inventory consigned to Lowe’s and (ii) $999,999.99,
provided that if the value of the Eligible Inventory consigned to Lowe’s is equal to or greater than $1,000,000 and the Borrower has fully complied with and remains in full compliance with all of the requirements set forth in Sections 4.4(e)
and 5.3(a) of the Security Agreement applicable to Inventory consigned to Lowe’s, sub-clause (ii) shall not apply. 
 5.
Section 3.01(a) of the Credit Agreement is hereby deleted in its entirety and the following Section is substituted in its place: 
 Section 3.01 Revolving Credit Collateral. The Revolving Credit Loan Obligations shall be secured as follows: 
 (a) A first priority security interest in and lien on the Borrower’s accounts, inventory, and books and records related thereto, whether now owned of hereafter acquired and wherever located, as more particularly
described in the Security Agreement; and 
 6. Section 4.02(b)(ii) of the Credit Agreement is hereby deleted in its entirety and the
following Section is substituted in its place: 
 (ii) with respect to the Borrower’s first request for a Revolving Loan after each
occurrence of any fire, theft, water damage, vandalism or other damage to or loss of any Inventory for which insurance proceeds are paid to the Borrower or the Collateral Agent, the Borrower shall have executed and delivered to the Bank a new
Borrowing Base Certificate based on information as of the date of such request; 
  

 -2- 

 7. Section 6.03(b) of the Credit Agreement is hereby deleted in its entirety and the following
provision is substituted in its place: 
 (b) Insurance. In addition to the insurance requirements set forth in the Deed of
Trust and the Security Agreement, the Borrower will maintain, and will cause each of its Subsidiaries to maintain, insurance with financially sound and responsible companies in such amounts (and with such risk retentions and with such deductibles)
and against such risks as is usually carried by owners of similar businesses and properties in the same general areas in which the Borrower and its Subsidiaries operate, and the Borrower will maintain not less than $64,000,000 of business
interruption insurance at all times (or such lesser amount as the Bank may agree to in its reasonable discretion). Subject to the terms of the Security Agreement, the Bank shall be named as loss payee and additional insured on all such insurance
policies insuring the Collateral (as defined in the Security Agreement). Subject to the terms of the Security Agreement, not less frequently than annually and more frequently if the Bank shall so request, the Borrower shall deliver to the Bank
certificates evidencing that it is named as loss payee and additional insured on all such insurance and the Borrower shall promptly deliver such other information as the Bank shall reasonably request from time to time. 
 8. Section 6.07(l) of the Credit Agreement is hereby deleted in its entirety and the following Section is substituted in its place: 
 (l) Liens existing as of March 16, 2007 and set forth on Schedule 4.9 to the Security Agreement, and the extension, renewal or
replacement of any such Lien, provided that (i) such Lien attaches only to the same property as the original Lien, (ii) the principal amount of Debt secured by such Lien is not increased and (iii) at the time of such extension,
renewal or replacement, no Default or Event of Default shall have occurred and be continuing; 
 9. Section 6.07 of the Credit Agreement
is hereby amended by inserted the following Section, labeled Section 6.07(m), between Sections 6.07(l) and 6.07 (n): 
 (m) [Reserved]. 
 10. Section 6.07(n) of the Credit Agreement is hereby deleted in its entirety and the following Section is
substituted in its place: 
 (n) Liens on the Revolving Credit Loan Collateral securing Debt incurred within the limitations
of Section 6.08(v); 
  

 -3- 

 11. Clause (v) of Section 6.08 of the Credit Agreement is hereby deleted in its entirety and
the following clause is substituted in its place: 
 (v) additional secured Facility Debt incurred after the Closing Date, provided that at
the time such additional Facility Debt is incurred (1) no Default or Event of Default shall have occurred or will occur as a result of the incurrence of such Facility Debt, (2) the aggregate principal amount of such additional Facility
Debt is not greater than $10,000,000, and (3) all the holders of such additional Facility Debt (and all of the holders of the Liens securing such additional Facility Debt) shall have become parties to the Intercreditor Agreement; 
 12. The definition of the term, “Collateral,” contained in the Definitions Appendix to the Credit Agreement is hereby deleted in its entirety
and the following definition is substituted in its place: 
 “Collateral” means, collectively, the Winchester
Property, as more particularly described in the Deed of Trust and the collateral described in the Security Agreement. 
 13. The definition
of the term, “Loan Documents,” contained in the Definitions Appendix to the Credit Agreement is hereby deleted in its entirety and the following definition is substituted in its place: 
 “Loan Documents” means this Agreement, the Notes, the Deed of Trust, the Security Agreement, all related financing statements,
the Letter of Credit Applications, the ISDA Master Agreement, the Intercreditor Agreement, the Services Agreement, each subsidiary guaranty executed and delivered pursuant to Section 6.23 hereof, and each other document, instrument or agreement
executed and delivered by the Borrower, its Subsidiaries or their counsel in connection with this Agreement or otherwise referred to herein or contemplated hereby, all as amended, restated, supplemented or otherwise modified from time to time.

 14. The definition of the term, “Revolving Credit Loan Obligations,” contained in the Definitions Appendix to the Credit
Agreement is hereby deleted in its entirety and the following definition is substituted in its place: 
 “Revolving
Credit Loan Obligations” means: 
 (i) all principal of and interest (including, without limitation, any interest which
accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of the Borrower, whether or not allowed or allowable as a claim in any such proceeding) on the Revolving Loan, Letters of
Credit, fees payable or reimbursement obligations under, or any note issued pursuant to, the Letters of Credit or the Revolving Loan; 
  

 -4- 

 (ii) all other amounts now or hereafter payable by the Borrower and all other obligations
or liabilities now existing or hereafter arising or incurred (including, without limitation, any amounts which accrue after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of the
Borrower, whether or not allowed or allowable as a claim in any such proceeding) on the part of the Borrower pursuant to the Letters of Credit or the Revolving Note; and 
 (iii) all renewals, modifications, consolidations or extensions of or to each of the obligations described in clauses (i) to and
including (ii) above. 
 15. The Definitions Appendix to the Credit Agreement is hereby amended by inserting the following terms in the
correct alphabetical order in the Definitions Appendix: 
 “Collateral Agent” means Branch Banking and Trust
Company, a North Carolina banking corporation, in its capacity as collateral agent under the Security Agreement and the Intercreditor Agreement, and any successor. 
 “Intercreditor Agreement” means the Intercreditor and Collateral Agency Agreement dated as of March 16, 2007, by and among
the Collateral Agent, the Bank, and the noteholders party thereto, as it may be amended, restated, supplemented or otherwise modified from time to time. 
 “Revolving Credit Loan Collateral” means, collectively, all of the collateral described in the Security Agreement. 
 “Revolving Credit Loan Collateral Documents” mean, collectively, the Security Agreement and all guaranties that secure the
Revolving Credit Loan Obligations. 
 “Security Agreement” means the Security Agreement, dated as of March 16,
2007, substantially in the form of Exhibit H-1 hereto, between the Borrower and the Collateral Agent, that secures, inter alia, the Revolving Credit Loan Obligations, as it may be amended, restated, supplemented or otherwise modified from
time to time. 
 16. Exhibit H to the Credit Agreement is hereby deleted in its entirety and a new Exhibit, which is attached to this
Amendment and labeled Exhibit H-1, is substituted in its place. 
 17. The Borrower hereby represents and warrants to the Bank (which
representations and warranties shall survive the execution and delivery of this Amendment) that: 
 (a) It is in compliance with all of the
terms, covenants and conditions of the Credit Agreement, as amended by this Amendment, and each of the other Loan Documents. 
  

 -5- 

 (b) There exists no Default or Event of Default under the Credit Agreement, as amended by this
Amendment, and no event has occurred or condition exists which, with the giving of notice or lapse of time, or both, would constitute such a Default or Event of Default. 
 (c) The representations and warranties contained in Article V of the Credit Agreement are, except to the extent that they relate solely to an earlier date or except to the extent that they relate solely to TREX LLC,
true in all material respects with the same effect as though such representations and warranties had been made on the date of this Amendment. 
 (d) The execution, delivery and performance by the Borrower of this Amendment, the Security Agreement, the landlord lien waivers required by Section 4.4 of the Security Agreement, the consignee agreement between the Bank and The Home
Depot (in the form attached hereto as Exhibit K-1), the consignment agreement between the Bank and Lowe’s (in the form attached hereto as Exhibit K-2), and the Intercreditor Agreement are within its corporate powers, have been
duly authorized by all necessary corporate action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not contravene or constitute (with or without the giving of notice or lapse of time or both) a
default under any provision of applicable law or of the organizational documents of the Borrower or any Subsidiary or of any agreement, judgment, injunction, order, decree or other instrument binding upon or affecting the Borrower or any Subsidiary
or result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries other than a Lien in favor of the Collateral Agent as provided in the Security Agreement. 
 (e) This Amendment, the Security Agreement and the Intercreditor Agreement constitute, and the landlord lien waivers required by Section 4.4 of the
Security Agreement and the two consignee agreements described in paragraph 17(d) of this Amendment when executed and delivered by the Borrower will constitute, the valid and binding agreements of the Borrower, enforceable against the Borrower in
accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by equitable principles of general applicability (regardless of whether
such enforceability is considered in a proceeding in equity or at law). 
 (f) Except as set forth on Schedule 5.05 to the Credit
Agreement, there is no material action, suit, proceeding or investigation pending against, or to the knowledge of the Borrower threatened against, contemplated or affecting, the Borrower or any of its Subsidiaries before any court, arbitrator or
governmental body, agency or official which has, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, or which in any manner draws into question the validity or enforceability of this Amendment, the
Security Agreement, the landlord lien waivers required by Section 4.4 of the Security Agreement, 

  

 -6- 

 
the two consignee agreements described in paragraph 17(d) of this Amendment, the Intercreditor Agreement or any of the other Loan Documents, and there is no
basis known to the Borrower or any of its Subsidiaries for any such action, suit, proceeding or investigation. 
 18. The Bank’s
agreement to enter into this Amendment is subject to the following conditions precedent: 
 (a) The Borrower shall have executed and
delivered to the Bank this Amendment and the Security Agreement in the form of Exhibit H-1 attached hereto with the blanks therein appropriately completed. 
 (b) The Borrower shall have executed and delivered and caused each of the other parties to the Intercreditor Agreement to have executed and delivered the Intercreditor Agreement. 
 (c) The Borrower shall have caused appropriate Financing Statements (Form UCC-l or such other financing statements or similar notices as shall be
required by local law) appropriately completed for filing under the Uniform Commercial Code or other applicable local law of each jurisdiction in which the filing of a financing statement or giving of notice may be required, or reasonably requested
by the Bank, to perfect the Liens purported to be created by the Security Agreement. 
 (d) The Borrower shall have provided to the Bank, or
caused to be provided to the Bank, copies of reports from UCC Retrievals or other independent search service reasonably satisfactory to the Bank listing all effective financing statements that name the Borrower (under its present name and any
previous name and, if requested by the Bank, under any trade names) as debtor or seller that are filed in Delaware, together with copies of such financing statements filed in Delaware (none of which shall cover the Collateral (as that term is
defined in the Security Agreement)) except to the extent evidencing Permitted Liens or for which the Bank shall have received financing statement amendments (Form UCC-3) or such other termination statements as shall be required by local law and
written authority to file the same. 
 (e) The Borrower shall have delivered to the Bank true, correct and complete copies of the
consignment agreements and all other documents related to the consignment arrangements between the Borrower and each of The Home Depot and Lowe’s. 
 (f) The Borrower shall have caused to be filed appropriate Financing Statements appropriately completed for filing under the Uniform Commercial Code of each jurisdiction in which the filing of a financing statement
may be required, or reasonably requested by the Bank, naming each of The Home Depot and Lowe’s as debtor, the Borrower as secured party and the Collateral Agent as assignee, to perfect the Borrower’s Lien in that portion of the Collateral
that has been consigned to each of The Home Depot and Lowe’s. 
 (g) The Borrower shall have provided to the Bank, or caused to be
provided to the Bank, copies of reports from an independent search service reasonably satisfactory to the Bank listing all effective financing statements that name The Home Depot as 

  

 -7- 

 
debtor that are filed in Delaware, together with copies of such financing statements filed in Delaware. In addition, the Borrower shall have provided to the
Bank copies of all notices that the Borrower has sent to secured parties of record disclosed by such reports that have filed financing statements covering inventory of The Home Depot manufactured by the Borrower, which notices shall be in form and
substance satisfactory to the Bank. 
 (h) The Borrower shall have provided to the Bank, or caused to be provided to the Bank, copies of
reports from an independent search service reasonably satisfactory to the Bank listing all effective financing statements that name Lowe’s as debtor that are filed in North Carolina, together with copies of such financing statements filed in
North Carolina. In addition, the Borrower shall have provided to the Bank copies of all notices that the Borrower has sent to secured parties of record disclosed by such reports that have filed financing statements covering inventory of Lowe’s
manufactured by the Borrower, which notices shall be in form and substance satisfactory to the Bank. 
 (i) The Bank shall have received a
favorable opinion of counsel to the Borrower addressed to the Bank, dated as of the date hereof and satisfactory in form and substance to the Bank, as to the due authorization, execution, delivery and enforceability of this Amendment, the Security
Agreement and the Intercreditor Agreement, the perfection of the Collateral Agent’s security interest in the Revolving Credit Loan Collateral, the perfection of the Borrower’s security interest in that portion of the Collateral that has
been consigned to each of The Home Depot and Lowe’s, and such other matters as the Bank shall reasonably request. 
 (j) The Borrower
shall have executed and delivered, or caused to be executed and delivered, to the Bank such other and further documents, certificates, opinions and other papers as the Bank shall reasonably request; and the Borrower shall have paid all fees due to
the Bank. 
 19. Except as expressly amended hereby, the terms of the Credit Agreement shall remain in full force and effect in all respects,
and the Borrower hereby reaffirms its obligations under the Credit Agreement, as amended by this Amendment, and each of the other Loan Documents. The Borrower hereby waives any claim, cause of action, defense, counterclaim, setoff or recoupment of
any kind or nature that it may assert against the Bank arising from or in connection with the Credit Agreement, as amended by this Amendment, any of the Loan Documents, or the transactions contemplated thereby or hereby that exist on the date hereof
or arise from facts or actions occurring prior hereto or on the date hereof. Nothing contained in this Amendment shall be construed to constitute a novation with respect to the obligations described in the Credit Agreement. 
 20. All references to the Credit Agreement in any of the Loan Documents, or any other documents or instruments that refer to the Credit Agreement, shall
be deemed to be references to the Credit Agreement as amended by this Amendment. 
 21. This Amendment shall be construed in accordance with
and governed by the laws of the Commonwealth of Virginia. 
  

 -8- 

 22. Any Dispute arising out of or related to this Amendment or any of the other Loan Documents shall be
resolved by binding arbitration as provided in Section 9.07 of the Credit Agreement. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY DISPUTE.

 23. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together
shall constitute one and the same instrument. 
 24. This Amendment shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. The Borrower shall not have the right to assign any of its rights or obligations under or delegate any of its duties under the Credit Agreement, as amended by this Amendment, or any of the other Loan
Documents. 
 25. The Borrower hereby agrees that it will pay on demand all out-of-pocket expenses incurred by the Bank in connection with
the preparation of this Amendment and the preparation, review, negotiation and filing of any of the documents described in Section 16 hereof, and any other related documents, including but not limited to the fees and disbursements of counsel
for the Bank. 
 26. This Amendment represent the final agreement between the Borrower and the Bank with respect to the subject matter
hereof, and may not be contradicted, modified or supplemented in any way by evidence of any prior or contemporaneous written or oral agreements of the Borrower and the Bank. 
 [Remainder of Page Intentionally Left Blank] 
  

 -9- 

 IN WITNESS WHEREOF, the Borrower and the Bank have caused this Amendment to be executed by their
duly authorized officers under seal as of the date first written above. 
  

					
	TREX COMPANY, INC.
			
	By:	 	 /s/ Paul D. Fletcher
	 	(SEAL)
	Name:	 	Paul D. Fletcher
	Title:	 	 Senior Vice President and
 Chief Financial
Officer

	
	BRANCH BANKING AND TRUST COMPANY
			
	By:	 	 /s/ David A. Chandler
	 	(SEAL)
	Name:	 	David A. Chandler
	Title:	 	Senior Vice President

 Exhibit K-1—Consignment Agreement (The Home Depot) 
 Exhibit K-2—Consignment Agreement (Lowe’s) 
  

 -10- 

 EXHIBIT K-1 
 [BB&T LETTERHEAD] 
 March     , 2007 
 Home Depot U.S.A., Inc. 
 2455 Paces Ferry Road 
 Atlanta, Georgia 30339 
 Attention: MVP Lumber 
  

	 	Re:	Trex Company, Inc. (the “Company”) 

 Ladies and
Gentlemen: 
 We refer to the [Products Handling Agreement] dated March     , 2007 by and between Home Depot
U.S.A., Inc. (“The Home Depot”) and the Company (such agreement, as amended, restated, replaced, supplemented or otherwise modified, the “Consignment Agreement”). Pursuant to the Consignment Agreement, the Company and The Home
Depot agreed that the Company will store certain of the Company’s inventory (as defined in the Uniform Commercial Code) (such inventory, the “Consigned Inventory”) at one or more of The Home Depot’s distribution centers
(collectively, the “Consignee Facilities”) for the purpose of facilitating The Home Depot’s purchase of the Consigned Inventory. 
 Pursuant to a Security Agreement dated March     , 2007 (such security agreement, as amended, restated, replaced, supplemented or otherwise modified, the “Security Agreement”), the Company has granted to
Branch Banking and Trust Company, as collateral agent (“Collateral Agent”) a security interest in, among other collateral, all of the Company’s inventory (as defined in the Uniform Commercial Code), accounts (as defined in the Uniform
Commercial Code) and all proceeds thereof (including the books and records related to or referring to any of the inventory or accounts), whether now owned or hereafter acquired (collectively, the “Collateral”). Because the Collateral
includes the Consigned Inventory, Collateral Agent has required The Home Depot’s execution and delivery of this letter agreement. 
 The
Home Depot hereby agrees to and acknowledges the following: 
 1. The Home Depot hereby acknowledges receipt of notice of Collateral
Agent’s security interest in the Consigned Inventory and the Company’s right to receive payments from The Home Depot under, and the Company’s right to enforce its rights under, the Consignment Agreement, and The Home Depot hereby
consents to such security interest; 
 2. The Home Depot has not received written notification of, and The Home Depot has no actual knowledge
of, any other security interest, lien or other form of encumbrance (each, a “Lien”) on or with respect to any of the Consigned Inventory, and The Home Depot hereby confirms that it does not have and will not acquire a Lien on the Consigned
Inventory; 
 3. Until title to the Consigned Inventory has passed to The Home Depot as provided in the Consignment Agreement, all of the
Consigned Inventory shall remain the property of the Company, shall be marked to indicate that it is owned by the Company, and shall be physically segregated from other goods stored or located at each of the Consignee Facilities; 
  

 K-1-1 

 4. Collateral Agent and its representatives and agents are hereby granted access to each of the Consignee
Facilities during normal business hours for the purpose of inspecting the Consigned Inventory, examining the books and records with respect to the Consigned Inventory, and examining such matters as Collateral Agent deems necessary with respect
thereto; 
 5. Upon The Home Depot’s receipt of written notice from Collateral Agent (which notice shall be sent to the address for The
Home Depot shown at the beginning of this letter) that a default exists under the Security Agreement (a “Default Notice”), The Home Depot will permit Collateral Agent and its representatives and agents access to each of the Consignee
Facilities to inspect the Consigned Inventory and, at Collateral Agent’s sole option, to take possession of the Consigned Inventory. After The Home Depot’s receipt of a Default Notice, The Home Depot shall, unless otherwise notified by
Collateral Agent in writing, (i) make all payments then or thereafter due to the Company under the Consignment Agreement to Collateral Agent in accordance with Collateral Agent’s instructions set forth in the Default Notice, without
offset, and (ii) provide Collateral Agent all reports, lists, certificates and other papers required to be delivered by The Home Depot to the Company under the Consignment Agreement. 
 6. The Home Depot shall send to Collateral Agent (at the address shown at the end of this letter) notice of any default or event of default under or with
respect to the Consignment Agreement that it sends to the Company. 
 This letter agreement shall be binding on The Home Depot and its successors and
assigns, and shall be for the sole benefit of Collateral Agent and its successors and assigns. No third party shall be a beneficiary of this letter agreement. 
  

			
	Very truly yours,
	
	BRANCH BANKING AND TRUST COMPANY
		
	By:	 	  

	Name:	 	David A. Chandler
	Title:	 	Senior Vice President
		
	Address:	 	    Branch Banking and Trust Company
		 	    115 N. Cameron Street
		 	    Winchester, Virginia 22601
		 	    Attention: David A. Chandler

  

 K-1-2 

 By signing below, The Home Depot hereby acknowledges and agrees to all of the terms and provisions contained in this
letter agreement: 
  

			
	HOME DEPOT U.S.A., INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Acknowledged and Agreed:
	
	Trex Company, Inc.
		
	By:	 	  

	Name:	 	Paul D. Fletcher
	Title:	 	Senior Vice President and Chief Financial Officer

  

 K-1-3 

 EXHIBIT K-2 
 [BB&T LETTERHEAD] 
 March     , 2007 
 Lowe’s Companies, Inc. 
 1000 Lowe’s Boulevard 
 Moorefield, North Carolina 28177 
 Attention: Senior Vice President,
Merchandising 
 Re: Trex Company, Inc. (the “Company”) 
 Ladies and Gentlemen: 
 We refer to the Master Standard
Buying Agreement dated January 5, 2007 by and between Lowe’s Companies, Inc. (“Lowe’s”) and the Company (such agreement, as amended, restated, replaced, supplemented or otherwise modified, the “Consignment
Agreement”). Pursuant to the Consignment Agreement, the Company and Lowe’s agreed that the Company will store certain of the Company’s inventory (as defined in the Uniform Commercial Code) (such inventory, the “Consigned
Inventory”) at one or more of Lowe’s distribution centers (collectively, the “Consignee Facilities”) for the purpose of facilitating Lowe’s purchase of the Consigned Inventory. 
 Pursuant to a Security Agreement dated March     , 2007 (such security agreement, as amended, restated, replaced, supplemented
or otherwise modified, the “Security Agreement”), the Company has granted to Branch Banking and Trust Company, as collateral agent (“Collateral Agent”) a security interest in, among other collateral, all of the Company’s
inventory (as defined in the Uniform Commercial Code), accounts (as defined in the Uniform Commercial Code) and all proceeds thereof (including the books and records related to or referring to any of the inventory or accounts), whether now owned or
hereafter acquired (collectively, the “Collateral”). Because the Collateral includes the Consigned Inventory, Collateral Agent has required Lowe’s execution and delivery of this letter agreement. 
 Lowe’s hereby agrees to and acknowledges the following: 
 1. Lowe’s hereby acknowledges receipt of notice of Collateral Agent’s security interest in the Consigned Inventory and the Company’s right to receive payments from Lowe’s under, and the
Company’s right to enforce its rights under, the Consignment Agreement, and Lowe’s hereby consents to such security interest; 
 2.
Lowe’s has not received written notification of, and Lowe’s has no actual knowledge of, any other security interest, lien or other form of encumbrance (each, a “Lien”) on or with respect to any of the Consigned Inventory, and
Lowe’s hereby confirms that it does not have and will not acquire a Lien on the Consigned Inventory; 
 3. Until title to the Consigned
Inventory has passed to Lowe’s, all of the Consigned Inventory shall remain the property of the Company, shall be marked to indicate that it is owned by the Company, and shall be physically segregated from other goods stored or located at each
of the Consignee Facilities; 
  

 K-2-1 

 4. Collateral Agent and its representatives and agents are hereby granted access to each of the Consignee
Facilities during normal business hours for the purpose of inspecting the Consigned Inventory, examining the books and records with respect to the Consigned Inventory, and examining such matters as Collateral Agent deems necessary with respect
thereto; 
 5. Upon Lowe’s receipt of written notice from Collateral Agent (which notice shall be sent to the address for Lowe’s
shown at the beginning of this letter) that a default exists under the Security Agreement) (a “Default Notice”), Lowe’s will permit Collateral Agent and its representatives and agents access to each of the Consignee Facilities to
inspect the Consigned Inventory and, at Collateral Agent’s sole option, to take possession of the Consigned Inventory. After Lowe’s receipt of a Default Notice, Lowe’s shall, unless otherwise notified by Collateral Agent in writing,
(i) make all payments then or thereafter due to the Company under the Consignment Agreement to Collateral Agent in accordance with Collateral Agent’s instructions set forth in the Default Notice, without offset, and (ii) provide
Collateral Agent all reports, lists, certificates and other papers required to be delivered by Lowe’s to the Company under the Consignment Agreement. 
 6. Lowe’s shall send to Collateral Agent (at the address shown at the end of this letter) notice of any default or event of default under or with respect to, or of the termination of, the Consignment Agreement
that it sends to the Company. 
 This letter agreement shall be binding on Lowe’s and its successors and assigns, and shall be for the sole benefit of
Collateral Agent and its successors and assigns. No third party shall be a beneficiary of this letter agreement. 
  

			
	Very truly yours,
	
	BRANCH BANKING AND TRUST COMPANY
		
	By:	 	  

	Name:	 	David A. Chandler
	Title:	 	Senior Vice President
		
	Address:	 	    Branch Banking and Trust Company
		 	    115 N. Cameron Street
		 	    Winchester, Virginia 22601
		 	    Attention: David A. Chandler

  

 K-2-2 

 By signing below, Lowe’s hereby acknowledges and agrees to all of the terms and provisions contained in this letter
agreement: 
  

			
	LOWE’S COMPANIES, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Acknowledged and Agreed:
	
	Trex Company, Inc.
		
	By:	 	  

	Name:	 	Paul D. Fletcher
	Title:	 	Senior Vice President and Chief Financial Officer

  

 K-2-3EXHIBIT 10.27

 Exhibit 10.27 
 PROMISSORY NOTE 
 (Revolving Note) 
  

			
	$100,000,000.00	  	 
	 	  	December 31, 2006

 Trex Company, Inc. 
 160 Exeter Drive 
 Winchester, Virginia 22603-8605 
 (hereinafter referred to as “Borrower”) 
 Branch Banking and Trust Company, 
 successor by merger to Branch Banking and 
 Trust Company of Virginia, 
 115 North Cameron Street 
 Winchester, Virginia 22601 
 (hereinafter referred to as “Bank”) 
 Borrower promises to pay to
the order of Bank, in lawful money of the United States of America, at its office indicated above or wherever else Bank may specify, the sum of One Hundred Million and No/100s Dollars ($100,000,000.00) or such lesser sum as may be advanced with
respect to the Revolving Loans (as defined in that certain Credit Agreement dated as of June 19, 2002 between Borrower and Bank, as amended by a First Amendment to Credit Agreement dated as of August 29, 2003, as further amended by a
Second Amendment to Credit Agreement dated as of September 30, 2004, as further amended by a Third Amendment to Credit Agreement dated as of March 31, 2005, as further amended by a Fourth Amendment to Credit Agreement dated as of
July 25, 2005, as further amended by a Fifth Amendment to Credit Agreement dated as of December 31, 2005, as further amended by a Sixth Amendment dated as of November 9, 2006, and as further amended by a Seventh Amendment dated of
even date herewith (as so amended and as hereafter amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”)) and remains unpaid on the Revolving Credit Termination Date (as defined in the Credit
Agreement), and to pay interest on the unpaid principal balance of such sum from the date hereof at the rate and on the terms provided in this Promissory Note (including all renewals, extensions or modifications hereof, this “Note”).

 LOAN AGREEMENT. This Note is subject to the provisions of the Credit Agreement. Borrower’s obligation to comply with the provisions of the
Credit Agreement shall continue notwithstanding the satisfaction in full of Borrower’s obligations under this Note. 
 INTEREST RATE. Interest
shall accrue on the unpaid principal balance of this Note from and after the date hereof at a rate per annum (the “Interest Rate”) equal to LIBOR (as defined in the Credit Agreement) plus the Applicable Revolving Loan Margin (as defined in
the Credit Agreement), with such rate to change as provided in the Credit Agreement. 
 DEFAULT RATE. In addition to all other rights contained in
this Note, if a Default (as defined herein) occurs and as long as a Default continues, the unpaid principal balance of this Note shall bear interest at the Interest Rate plus 2.50% (the “Default Rate”). The Default Rate shall also apply
from acceleration until this Note or any judgment hereon is paid in full. 

 INTEREST AND FEE(S) COMPUTATION (ACTUAL/360). Interest and fees, if any, shall be computed on the basis of a
360-day year for the actual number of days in the applicable period (“Actual/360 Computation”). The Actual/360 Computation determines the annual effective yield by taking the stated (nominal) rate for a year’s period and then dividing
said rate by 360 to determine the daily periodic rate to be applied for each day in the applicable period. Application of the Actual/360 Computation produces an annualized effective interest rate exceeding the nominal rate. 
 REPAYMENT TERMS. 
 Interest Only Until Revolving
Credit Termination Date. Accrued interest on (i) the outstanding principal balance of the Prior Note (as hereinafter defined) for the period December 1, 2006 to and including December 31, 2006 shall be due and payable on
January 1, 2007 and (ii) the outstanding principal balance of this Note as it exists from time to time shall be due and payable on the first Business Day (as defined in the Credit Agreement) of each month, commencing on February 1,
2007, on any date on which this Note is paid in full and on the Revolving Credit Termination Date (as defined in the Credit Agreement). On the Revolving Credit Termination Date, the entire outstanding principal balance of this Note together with all
interest accrued hereon will be immediately due and payable in full. 
 Revolving Note. Subject to the terms and conditions contained
in the Credit Agreement, Borrower may borrow, repay and reborrow hereunder, up to a maximum aggregate amount outstanding at any one time equal to the lesser of (i) the available Borrowing Base (as defined in the Credit Agreement) minus the
Letter of Credit Obligations (as defined in the Credit Agreement) and (ii) the Revolving Commitment (as defined in the Credit Agreement) minus the Letter of Credit Obligations. Bank shall incur no liability for its refusal to advance funds
based upon its determination that any conditions of such further advances have not been met. Bank records of the amounts borrowed from time to time shall be conclusive proof thereof. 
 Prepayment; Adjustment of Revolving Commitment. This Note is subject to prepayment, and the Revolving Commitment is subject to adjustment, under
the terms and subject to the conditions set forth in the Credit Agreement. 
 Prior Note. This Note amends and restates the $70,000,000
Promissory Note of Borrower dated November 9, 2006, payable to Bank (the “Prior Note”), and this Note is executed and delivered to Bank as a replacement of and in substitution for the Prior Note. The execution and delivery of this
Note shall not constitute a novation of the debt originally evidenced by the Prior Note. 
 APPLICATION OF PAYMENTS. Monies received by Bank from any
source for application toward payment of this Note shall be applied to accrued interest and then to principal; provided that if the Bank has elected to have the Services Agreement (as defined in the Credit Agreement) apply to the Revolving Loans,
monies received by Bank for application toward payment of this Note shall be applied as set forth in the Services Agreement; provided, further, that after the occurrence of a Default, monies may be applied to Borrower’s obligations under this
Note in any manner or order deemed appropriate by Bank. If any payment received by Bank under this Note or the other Loan Documents (as defined in the Credit Agreement, and hereinafter, the “Loan Documents”) is rescinded, avoided or for
any reason returned by Bank because of any adverse claim or threatened action, the returned payment shall remain payable as an obligation of all persons liable under this Note or the other Loan Documents as though such payment had not been made.

 LATE CHARGE. If any payments due hereunder are not timely made, Borrower shall also pay to Bank a late charge equal to 5% of each payment past due
for 8 or more days. Acceptance by Bank of any late payment without an accompanying late charge shall not be deemed a waiver of Bank’s right to collect such late charge or to collect a late charge for any subsequent late payment received.

  

 2 

 ATTORNEYS’ FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Bank’s reasonable expenses
incurred to enforce or collect any amount owed under this Note, including, without limitation, reasonable arbitration, paralegals’, attorneys’ and experts’ fees and expenses, whether incurred without the commencement of a suit, in any
trial, arbitration, or administrative proceeding, or in any appellate or bankruptcy proceeding. 
 USURY. If at any time the effective interest rate
under this Note would, but for this paragraph, exceed the maximum lawful rate, the effective interest rate under this Note shall be the maximum lawful rate, and any amount received by Bank in excess of such rate shall be applied to principal and
then to fees and expenses under this Note, or, if no such amounts are owing, returned to Borrower. 
 DEFAULT. The occurrence of an Event of Default
under the Credit Agreement shall constitute a default under this Note (a “Default”). 
 REMEDIES UPON DEFAULT. If a Default occurs, Bank may
at any time thereafter, take the following actions: 
 Accelerate Upon Default. Accelerate the maturity of this Note, whereupon this
Note shall be immediately due and payable. 
 Set Off. At any time and from time to time, without presentment, demand, protest or other
notice of any kind (all of which rights being hereby expressly waived), set off and appropriate and apply any and all deposits and any other indebtedness at any time held or owing by Bank to or for the credit or the account of Borrower against
obligations and liabilities of Borrower to Bank hereunder or the other Loan Documents. 
 Cumulative. Exercise any rights and remedies
as provided under the Note, the Credit Agreement and the other Loan Documents, or as provided by law or equity. 
 WAIVERS AND AMENDMENTS. No waivers,
amendments or modifications of this Note or the other Loan Documents shall be valid unless in writing and signed by an officer of Bank. No waiver by Bank of any Default shall operate as a waiver of any other Default or the same Default on a future
occasion. Neither the failure nor any delay on the part of Bank in exercising any right, power, or remedy under this Note and the other Loan Documents shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or remedy. 
 Borrower or each other person liable under this Note waives
presentment, protest, notice of dishonor, demand for payment, notice of intention to accelerate maturity, notice of acceleration of maturity, notice of sale and all other notices of any kind. Further, each agrees that Bank may extend, modify or
renew this Note or make a novation of the loan evidenced by this Note for any period, and grant any releases, compromises or indulgences with respect to any collateral securing this Note, or with respect to Borrower or any person liable under this
Note or any other Loan Document, all without notice to or consent of Borrower or any person who may be liable under this Note or any other Loan Document and without affecting the liability of Borrower or any person who may be liable under this Note
or any other Loan Document. 
  

 3 

 MISCELLANEOUS PROVISIONS. 
 Assignment. This Note and the other Loan Documents shall inure to the benefit of and be binding upon the parties and their respective heirs, legal representatives, successors and assigns. Bank shall have the
right to assign or otherwise transfer any of its rights or interests in this Note and the other Loan Documents, in whole or in part, as provided in the Credit Agreement. Borrower shall not assign its rights and interest hereunder without the prior
written consent of Bank, and any attempt by Borrower to assign without Bank’s prior written consent is null and void. Any assignment shall not release Borrower from its obligations under this Note. 
 Applicable Law; Conflict Between Documents. This Note and the other Loan Documents shall be governed by and construed under the laws of the
Commonwealth of Virginia without regard to that state’s conflict of laws principles. If the terms of this Note should conflict with the terms of the Credit Agreement, the terms of this Note shall control. 
 Jurisdiction. Borrower irrevocably agrees to non-exclusive personal jurisdiction in the Commonwealth of Virginia. 
 Severability. If any provision of this Note or of the other Loan Documents shall be prohibited or invalid under applicable law, such provision
shall be ineffective but only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note or other such document. 
 Notices. Any notices to Borrower or Bank shall be sufficiently given if delivered in the manner and to the address or addresses specified in the
Credit Agreement. In the event that Borrower changes Borrower’s address at any time prior to the date this Note is paid in full, Borrower agrees to promptly give written notice of said change of address by registered or certified mail, return
receipt requested, all charges prepaid. 
 Plural; Captions. All references in the Loan Documents to Borrower, guarantor, person,
document or other nouns of reference mean both the singular and plural form, as the case may be, and the term “person” shall mean any individual, person or entity. The captions contained in the Loan Documents are inserted for convenience
only and shall not affect the meaning or interpretation of the Loan Documents. 
 Advances. Bank may, in its sole discretion, make
other advances which shall be deemed to be advances under this Note, even though the stated principal amount of this Note may be exceeded as a result thereof. 
 Fees and Taxes. Borrower shall promptly pay all documentary, intangible recordation and/or similar taxes on this transaction whether assessed at closing or arising from time to time. 
 PLACE OF EXECUTION AND DELIVERY. Borrower hereby certifies that this Note, the Credit Agreement and the other Loan Documents were executed in the Commonwealth of
Virginia and delivered to Bank in the Commonwealth of Virginia. 
 [SIGNATURES ON FOLLOWING PAGE] 
  

 4 

 IN WITNESS WHEREOF, Borrower, on the day and year first above written, has caused this Note to be executed under
seal. 
  

					
	TREX COMPANY, INC.
			
	By:	 	 /s/ Paul D. Fletcher
	 	(SEAL)
	Name:	 	Paul D. Fletcher	 	
	Title:	 	Senior Vice President and Chief Financial Officer	 	

  

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]