Document:

EX-10.1

 Exhibit 10.1 

TREX COMPANY, INC. 

AMENDED AND RESTATED 

1999 INCENTIVE PLAN FOR OUTSIDE DIRECTORS 

 TABLE OF CONTENTS 

 

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

  
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	1.	 DEFINITIONS 

To the extent any capitalized words used in this Plan are not defined, they shall have the definitions stated for them in the Trex Company,
Inc. 2014 Stock Incentive Plan. 
 1.1    “Annual Director Fee” means an annual fee earned by an
Eligible Director for service on the Board of Directors. 
 1.2    “Annual Committee Fee” means an
annual fee earned by an Eligible Director for service on various committees of the Board of Directors. 

1.3    “Board of Directors” or “Board” means the Board of Directors of the Company. 

1.4    “Cash Portion of the Annual Director Fee” means the portion of the Annual Director Fee to be
received in cash, or if elected by the Eligible Director, in Equity, as provided in Sections 4.3 and 6 hereof. 

1.5    “Committee” means the Nominating/Corporate Governance Committee which administers the Plan. 

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

1.7    “Company” means Trex Company, Inc., a Delaware corporation, or any successor thereto. 

1.8    “Election Form” means the form used by an Eligible Director to elect to receive all or a portion of
the Cash Portion of the Annual Director Fee and the Annual Committee Fee for a Plan Year in the form of Equity. 

1.9    “Eligible Director” for each Plan Year means a member of the Board of Directors who is not an
employee of the Company or any Subsidiary. 
 1.10    “Equity” means Options, Restricted Stock,
Restricted Stock Units or SARs, or any combination thereof, as designated by the Committee from time to time, as provided in Section 4.6. 

1.11    “Equity Portion of the Annual Director Fee” means the portion of the Annual Director Fee to be
received in Equity, as provided in Section 4.1.2 hereof. 
 1.12    “Fair Market Value” means the
closing price of a share of Common Stock reported on the New York Stock Exchange (the “NYSE”) on the date Fair Market Value is being determined, provided that if there is no closing price reported on such date, the Fair Market Value of a
share of Common Stock on such date shall be deemed equal to the closing price as reported by the NYSE for the last preceding date on which sales of shares of Common Stock were reported. Notwithstanding the foregoing, in the event that the

  
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shares of Common Stock are listed upon more than one established stock exchange, “Fair Market Value” means the closing price of the shares of Common Stock reported on the exchange that
trades the largest volume of shares of Common Stock on the date Fair Market Value is being determined. If the Common Stock is not at the time listed or admitted to trading on a stock exchange, Fair Market Value means the mean between the lowest
reported bid price and highest reported asked price of the Common Stock on the date in question in the over-the-counter market, as such prices are reported in a
publication of general circulation selected by the Board and regularly reporting the market price of Common Stock in such market. If the Common Stock is not listed or admitted to trading on any stock exchange or traded in the over-the-counter market, Fair Market Value shall be as determined in good faith by the Board. 

1.13    “Grant Date” has the meaning set forth in Section 5 hereof. 

1.14    “Option” means a non-qualified Option granted pursuant to
the Trex Company, Inc. 2014 Stock Incentive Plan as may be amended from time to time. 
 1.15    “Option
Agreement” means the written agreement between the Company and the Participant that evidences and sets out the terms and conditions of the Option. 

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

1.17    “Participant” for any Plan Year means an Eligible Director who participates in the Plan for that
Plan Year in accordance with Section 6.1 hereof. 
 1.18    “Plan” means the Trex Company, Inc.
Amended and Restated 1999 Incentive Plan for Outside Directors as set forth herein and as amended from time to time. 

1.19    “Plan Year” means the twelve-month period beginning on July 1 and ending on June 30. 

1.20    “Restricted Stock” means shares of Common Stock, issued pursuant to the Trex Company, Inc. 2014
Stock Incentive Plan as may be amended from time to time. 
 1.21    “Restricted Stock Agreement” means
the written agreement between the Company and the Participant that evidences and sets out the terms and conditions of the Restricted Stock. 

1.22    “Restricted Stock Unit” means restricted stock units issued pursuant to the Trex Company, Inc.
2014 Stock Incentive Plan as may be amended from time to time. 
 1.23    “Restricted Stock Unit
Agreement” means the written agreement between the Company and the Participant that evidences and sets out the terms and conditions of the Restricted Stock Unit. 

  
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 1.24    “SAR Agreement” means the written agreement
between the Company and the Participant that evidences and sets out the terms and conditions of the SARs. 

1.25    “Stock Appreciation Right” or “SAR” means a right granted pursuant to, and in
accordance with the terms of, the Trex Company, Inc. 2014 Stock Incentive Plan to receive, upon exercise thereof, the excess of (x) the Fair Market Value of one share of Common Stock on the date of exercise over (y) the grant price of the
SAR, determined pursuant to Section 4.6.2 hereof. 
 1.26    “SAR Price” means the grant price of
the SAR. 
 1.27    “Subsidiary” means any “subsidiary corporation” of the Company within the
meaning of Section 424(f) of the Internal Revenue Code of 1986, as amended. 
  

	2.	 PURPOSE 

The purpose of the Plan is to compensate Eligible Directors for service on the Board of Directors and various committees of the Board, and to
provide an incentive for Eligible Directors to increase their equity holdings in the Company so that the financial interests of the Eligible Directors shall be more closely aligned with the financial interests of the Company’s stockholders.

  

	3.	 SHARES SUBJECT TO THE PLAN 

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

 

	4.	 ANNUAL DIRECTOR AND COMMITTEE FEES 

 

	 	4.1	 Annual Director Fee 

Each Eligible Director shall be entitled to an Annual Director Fee, which may be adjusted by the Board from time to time, as follows: 

4.1.1 Cash Portion of the Annual Director Fee.    Each Eligible Director shall receive the amount of sixty five
thousand dollars ($65,000) (the “Cash Portion of the Annual Director Fee”). The Cash Portion of the Annual Director Fee (after reduction pursuant to Section 4.3 hereof, if any) shall be paid to an Eligible Director in four equal
quarterly installments in arrears on the first business day following the end of each quarter of the Plan Year in which the Eligible Director provided services to the Company. Notwithstanding the foregoing, (a) any Eligible Director who serves
as Chairman of the Board shall receive the amount of eighty thousand dollars ($80,000) in addition to the $65,000 payment referred to above, (b) any Eligible Director who serves as Vice Chairman of the Board shall receive the amount of fifty
thousand dollars ($50,000) in addition to the $65,000 payment referred to above, and (c) any Eligible Director that serves as Lead Independent Director shall receive the amount of twenty thousand dollars ($20,000) in addition to the $65,000
payment referred to above, with all other provisions of this subsection being applicable to such Eligible Director(s). 

  
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 4.1.2 Equity Portion of the Annual Director Fee. Each Eligible Director shall receive
Equity valued at one hundred thousand dollars ($100,000) (the “Equity Portion of the Annual Director Fee”). The Equity Portion of the Annual Director Fee shall be paid in arrears as provided in Section 5 below. 

 

	 	4.2	 Annual Committee Fee 

Each Eligible Director shall be entitled to an Annual Committee Fee, which may be adjusted by the Board from time to time, as follows
(a) seventeen thousand five hundred dollars ($17,500) for the Audit Committee Chairman, (b) eight thousand seven hundred and fifty dollars ($8,750) for each Audit Committee member (other than the Chairman), (c) fifteen thousand
dollars ($15,000) for the Compensation Committee Chairman, (d) seven thousand five hundred dollars ($7,500) for each Compensation Committee member (other than the Chairman), (e) twelve thousand five hundred dollars ($12,500) for the
Nominating/Corporate Governance Committee Chairman, and (f) six thousand two hundred and fifty dollars ($6,250) for each Nominating/Corporate Governance Committee member (other than the Chairman). The Annual Committee Fee shall be paid to an
Eligible Director in four equal quarterly installments in arrears on the first business day following each quarter of the Plan Year in which the Eligible Director served on the applicable committee(s). 

 

	 	4.3	 Election 

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

	 	4.4	 Proration 

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

	 	4.5	 Initial Grant upon Election to Board 

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

	 	4.6	 Equity 

4.6.1 Form of Equity. Whenever Equity is to be granted to Eligible Directors hereunder, the Committee shall, prior to such grant,
determine whether such Equity shall be in the form of Options, Restricted Stock, Restricted Stock Units or SARs, or any combination thereof. 

  
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 4.6.2 Options and SARs. If Options or SARS are granted, the number of Options or SARs
granted shall be determined by dividing the dollar amount of the grant by the value of each Option or SAR on the Grant Date as determined pursuant to the methodology then in use by the Company’s Finance Department to value Options and SARs
granted pursuant to the Trex Company, Inc. 2014 Stock Incentive Plan. The Option Price or SAR Price of Common Stock covered by each SAR or Option, as the case may be, granted under the Plan shall be the Fair Market Value of such Common Stock on the
Grant Date. Each Option or SAR, as the case may be, granted hereunder shall be exercisable in respect of 100 percent (100%) of the number of shares covered by the grant on the date of the grant of such Option or SAR. Any limitation on the
exercise of an Option or SAR contained in any Option or SAR Agreement may be rescinded, modified or waived by the Committee, in its sole discretion, at any time and from time to time after the date of grant of such Option or SAR. The Option or SAR,
as the case may be, shall be exercisable, in whole or in part, at any time and from time to time, prior to the termination of the Option or SAR; provided, that no single exercise of the Option or SAR shall be for less than 100 shares, unless
the number of shares purchased is the total number at the time available for purchase under the Option or SAR. Each Option or SAR, as the case may be, granted under the Plan shall terminate, and all rights to purchase shares of Common Stock
thereunder shall cease, upon the expiration of ten years (eleven years if the service of the Participant as a director of the Company shall terminate due to death in the tenth year of the Option or SAR term) from the date such Option or SAR is
granted. Except as otherwise provided in the Option or SAR Agreement, upon the termination of service (a “Service Termination”) of the Participant as a director of the Company for any reason, the Participant shall have the right, at any
time within five years after the date of such Participant’s Service Termination and prior to termination of the Option or SAR, to exercise any Option or SAR held by such Participant at the date of such Participant’s Service
Termination.    After the termination of the Option or SAR, the Participant shall have no further right to purchase shares of Common Stock pursuant to such Option or SAR. 

4.6.3 Restricted Stock and Restricted Stock Units. If Restricted Stock or Restricted Stock Units are granted, the number of shares of
Restricted Stock or Restricted Stock Units shall be determined by dividing the dollar amount of the grant by the Fair Market Value of a share of Common Stock on the Grant Date. Except as otherwise provided in the Restricted Stock Agreement or
Restricted Stock Unit Agreement, each share of Restricted Stock or each Restricted Stock Unit will vest on the first anniversary of the grant, provided that such Restricted Stock or Restricted Stock Unit has not been forfeited, as provided below.
Except as otherwise provided in the Restricted Stock Agreement or Restricted Stock Unit Agreement, (a) in the event of a Service Termination of a Participant due to death, “permanent and total disability” (within the meaning of
Section 22(e)(3) of the Code), or retirement, any unvested Restricted Stock or Restricted Stock Units held by such Participant shall immediately vest, and (b) in the event of a Service Termination for any other reason, any unvested
Restricted Stock or Restricted Stock Unit held by such Participant shall immediately be deemed forfeited. 
  

	5.	 GRANT DATE 

The date of grant for the Equity Portion of the Annual Director Fee shall be the date of the first regularly scheduled Board of Directors’
Meeting following the end of each Plan Year in which the Eligible Director provided services to the Company, and the date of grant for Equity 

  
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issued in lieu of the Cash Portion of the Annual Director Fee and the Annual Committee Fee, as provided in Section 8 hereof, shall be the date such Fees would otherwise be due (each of such
dates being referred to as the “Grant Date”). 
  

	6.	 ELECTION TO RECEIVE ADDITIONAL EQUITY 

 

	 	6.1	 Election Form 

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

	 	6.2	 Time for Filing Election Form 

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

	7.	 ADMINISTRATION 

 

	 	7.1	 Committee 

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

	 	7.2	 Rules for Administration 

Subject to the limitations of the Plan, the Committee may from time to time establish such rules and procedures for the administration and
interpretation of the Plan and the transaction of its business as the Committee may deem necessary or appropriate. The determination of the Committee as to any disputed question relating to the administration and interpretation of the Plan shall be
conclusive. 
  

	 	7.3	 Committee Action 

Any act which the Plan authorizes or requires the Committee to do may be done by a majority of its members. The action of such majority,
expressed from time to time by a vote at a meeting (i) in person, or (ii) by telephone or other means by which all members can hear one 

  
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another shall have the same effect for all purposes as if assented to by all members of the Committee at the time in office. The Committee may also act without a meeting by unanimous written
consent. 
  

	 	7.4	 Delegation 

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

	 	7.5	 Services 

The Committee may employ or retain agents to perform such clerical, accounting and other services as it may require in carrying out the
provisions of the Plan. 
  

	 	7.6	 Indemnification 

The Company shall indemnify and save harmless each member of the Committee against all expenses and liabilities arising out of membership on
the Committee, other than expenses and liabilities arising from the such member’s own gross negligence or willful misconduct, as determined by the Board of Directors. 
  

	8.	 AMENDMENT AND TERMINATION 

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

 

	9.	 GENERAL PROVISIONS 

 

	 	9.1	 Limitation of Rights 

No Participant shall have any right to any payment or benefit hereunder except to the extent provided in the Plan. 

 

	 	9.2	 No Rights as Stockholders 

Nothing contained in this Plan shall be construed as giving any Participant rights as a stockholder of the Company. 

 

	 	9.3	 Rights as a Non-Employee Director 

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

  
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	 	9.4	 Assignment, Pledge or Encumbrance 

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

	 	9.5	 Binding Provisions 

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

	 	9.6	 Notices 

Any election made or notice given by a Participant pursuant to the Plan shall be in writing to the Committee or to such representative thereof
as may be designated by the Committee for such purpose and shall be deemed to have been made or given on the date received by the Committee or its representative. 
  

	 	9.7	 Governing Law 

The validity and interpretation of the Plan and of any of its provisions shall be construed under the laws of the State of Delaware without
giving effect to the choice of law provisions thereof. 
  

	 	9.8	 Withholding 

The Company shall have the right to deduct from the amounts distributable hereunder any federal, state or local taxes required by law to be
withheld with respect to such distributions, and such additional amounts of withholding as are reasonably requested by the Participant. 
  

	 	9.9	 Effective Date 

This Plan shall be effective as of March 12, 1999. The Plan was amended and restated effective May 14, 2002, October 24, 2003,
July 27, 2004, February 10, 2005, July 21, 2005, February 8, 2006, July 20, 2006 and November 12, 2007. The Plan was amended on May 5, 2010, July 20, 2010, July 24, 2012, April 30, 2014,
February 18, 2015, July 27, 2015, October 21, 2015, October 24, 2018 and February 21, 2020. 

  
 -8-EX-10.2

 Exhibit 10.2 

CHANGE IN CONTROL SEVERANCE AGREEMENT 

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the “Agreement”) is entered into as of February 21, 2020 (the “Effective
Date”) by and between Trex Company, Inc., a Delaware corporation (the “Company”), and Bryan H. Fairbanks, a key employee of the Company (the “Eligible Employee”). 

Recitals 
 WHEREAS, the
Eligible Employee has been and will be important in developing and expanding the business and operations of the Company and possesses valuable knowledge and skills with respect to such business; 

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”) believes that it is in the
best interests of the Company to encourage the Eligible Employee’s continued employment with and dedication to the Company and has authorized the Company to enter into this Agreement; 

WHEREAS, the parties desire to enter into this Agreement setting forth the terms and conditions for the payment of compensation to the
Eligible Employee in the event of a termination of the Eligible Employee’s employment in connection with a Change in Control (as defined herein) during the term of this Agreement; 

NOW, THEREFORE, in consideration of the foregoing, the agreements and covenants set forth herein, and other valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
 1.    Definitions. Except as
otherwise provided in this Agreement, capitalized terms in this Agreement shall have the meanings set forth in this Section 1. 
  

	 	(a)	 “Administrator” means the Committee or such other person or persons appointed from time to
time by the Committee. 

  

	 	(b)	 “Affiliate” means any “parent corporation” and any “subsidiary
corporation” of the Company, as such terms are defined in Section 424 of the Code. 

  

	 	(c)	 “Board” means the Board of Directors of the Company. 

 

	 	(d)	 “Cause” means one of the following reasons for which the Eligible Employee’s employment
with the Employer is terminated: (1) willful or grossly negligent misconduct that is materially injurious to the Employer; (2) embezzlement or misappropriation of funds or property of the Employer; (3) conviction of a felony or the
entrance of a plea of guilty or nolo contendere to a felony; (4) 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 (5) failure
or refusal by the Eligible Employee 

	 	
to devote full business time and attention to the performance of his duties and responsibilities if such breach has not been cured within 15 days after notice thereof is given to the Eligible
Employee. 

  

	 	(e)	 “Change in Control” means the first of the following events to occur after the Effective Date:

 (1)    The consummation of a transaction in which any “person” (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes, within the 12-month period ending on the date of such person’s most recent acquisition, a
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities representing more than 35% of the voting power of the then outstanding securities of the
Company; provided that a Change in Control shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction,
will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the other corporation would be entitled in the election of directors (without consideration of
the rights of any class of stock to elect directors by a separate class vote); 
 (2)    The consummation
of (a) a merger, consolidation, or similar extraordinary event involving the Company and another entity where the stockholders of the Company, immediately prior to the merger, consolidation or similar extraordinary event, will not beneficially
own, immediately after the merger, consolidation or similar extraordinary event, securities entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of
directors (without consideration of the rights of any class of stock to elect directors by a separate class vote), or (b) a sale or other disposition of all or substantially all of the assets of the Company; or 

(3)    During any 24-month period, individuals who at the beginning
of any such period constitute the Board cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s stockholders, of each director of the Company first elected during such
period was approved by a vote of at least two-thirds of the directors of the Company then still in office who were directors of the Company at the beginning of such
24-month period. 
  

	 	(f)	 “Change in Control Severance Benefits” means the benefits payable pursuant to Section 3
of this Agreement. 

  
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	 	(g)	 “Change in Control Protection Period” means the period commencing on the later of (1) the
date that is 90 days before the date a Change in Control occurs or (2) the Effective Date, and ending on the second anniversary of the date the Change in Control occurs. 

 

	 	(h)	 “Code” means the Internal Revenue Code of 1986, as amended. 

 

	 	(i)	 “Disability” shall have the meaning given that term under the Trex Company, Inc. Disability
Plan, as in effect at the time a determination of Disability is to be made. 

  

	 	(j)	 “Employer” means the Company or an Affiliate. 

 

	 	(k)	 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

  

	 	(l)	 “Final Pay” means the sum of (1) the greater of (A) the Eligible Employee’s
annual base salary in effect immediately prior to the Change in Control, or (B) the Eligible Employee’s annual base salary in effect at the time employment terminates, and (2) the greater of (A) the Eligible Employee’s
targeted cash bonus for the year immediately prior to the year in which the Change in Control occurs, (B) the Eligible Employee’s targeted cash bonus for the year in which employment terminates or (C) the actual cash bonus earned by
the Eligible Employee for the year immediately prior to the year in which employment terminates. 

  

	 	(m)	 “Good Reason” means, without the specific written consent of the Eligible Employee, any of the
following: 

 (1)    A material and adverse change in the Eligible Employee’s
status or position(s) as an officer or management employee of the Employer as in effect immediately prior to the Change in Control, including, without limitation, any adverse change in his status or position as an employee of the Employer as a
result of a material diminution in his duties or responsibilities 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
Employer that is cured promptly upon his giving notice), or any removal of the Eligible Employee from or any failure to reappoint or reelect him to such position(s) (except in connection with the Eligible Employee’s Severance other than for
Good Reason). 
 (2)    A 10% or greater reduction in the Eligible Employee’s aggregate base salary
and targeted bonus from the aggregate base salary and targeted bonus that was in effective immediately prior to the occurrence of a Change in Control, but disregarding any reduction in 

  
 3 

 
targeted bonus which occurs in accordance with the terms of any written bonus program as it reads immediately prior to the occurrence of a Change in Control. 

(3)    The failure by the Employer or any successor to continue in effect any employee benefit plan
(excluding any equity compensation plan) in which the Eligible Employee is participating at the time of the Change in Control (or plans providing the Eligible Employee 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 as in effect at the time of the Change in Control; or the taking of any action, or the failure to act, by the Employer or any successor which would adversely
affect the Eligible Employee’s continued participation in any of such plans on at least as favorable a basis to him as is the case on the date of the Change in Control or which would materially reduce his benefits under any of such plans. 

(4)    The Employer’s requiring the Eligible Employee to be based at an office that is both more than
50 miles from where his office is located immediately prior to the Change in Control and further from his then current residence, except for required travel on the Employer’s business to an extent substantially consistent with the business
travel obligations which the Eligible Employee undertook on behalf of the Employer prior to the Change in Control. 
  

	 	(n)	 “Incentive Plan” means the Trex Company, Inc. 2014 Stock Incentive Plan (or a successor plan).

  

	 	(o)	 “Severance” means (1) the involuntary termination of the Eligible Employee’s
employment by the Employer, other than for Cause, death or Disability or (2) a termination of the Eligible Employee’s employment by the Eligible Employee for Good Reason, in each case, during the Change in Control Protection Period;
provided, however, that in each case the termination constitutes a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code and Treasury Regulations thereunder. 

 

	 	(p)	 “Severance Date” means the date on which the Eligible Employee incurs a Severance.

 2.    Term of Agreement. This Agreement shall remain in effect from the Effective Date through
December 31, 2020; provided, however, that (a) the Agreement shall automatically extend for additional one-year terms unless the Company provides written notice to the Eligible Employee not less than
six months before the end of the then-current term; and (b) the Agreement shall automatically extend until the end of the Change in Control Protection Period if a Change in Control occurs during the term of the Agreement. 

  
 4 

 3.    Change in Control Severance Benefits. 

 

	 	(a)	 Generally. Subject to subsections (h) and (i) below and Section 4, the Eligible Employee shall
be entitled to the Change in Control Severance Benefits provided in this Section 3 if he or she incurs a Severance during the Change in Control Protection Period. If the Eligible Employee becomes entitled to receive compensation or benefits
under the terms of this Section 3, such compensation or benefits will be reduced by other severance benefits payable under any plan, program, policy or practice of or agreement or other arrangement between the Eligible Employee and the Company.
It is intended that the net effect to the Eligible Employee of entitlement to any similar benefits that are contained both in this Agreement and in any other existing plan, program, policy or practice of or agreement or arrangement between the
Eligible Employee and the Company will be to provide the Eligible Employee with the greater of the benefits under this Agreement or under such other plan, program, policy, practice, or agreement or arrangement. 

 

	 	(b)	 Payment of Accrued Obligations. If the Eligible Employee incurs a Severance during the Change in Control
Protection Period, the Company shall pay to him a lump sum payment in cash, no later than 10 days after the Severance Date (or the date of the Change in Control, if later), equal to the sum of (1) the Eligible Employee’s accrued annual
base salary and any accrued vacation pay through the Severance Date, (2) the Eligible Employee’s annual bonus earned for the fiscal year immediately preceding the fiscal year in which the Severance Date occurs if such bonus has not been
paid as of the Severance Date; and (3) the Eligible Employee’s targeted cash bonus for the year in which the Severance occurs, pro-rated based upon the number of days the Eligible Employee was
employed during such year. 

  

	 	(c)	 Payment of Severance. Subject to subsections (h) and (i) below and Section 4, if the Eligible
Employee incurs a Severance during the Change in Control Protection Period, the Company shall pay to him a lump sum cash payment, no later than 10 days after the Severance Date (or the date of the Change in Control, if later), equal to two and
ninety-nine one-hundredths (2.99) times the Eligible Employee’s Final Pay. 

  

	 	(d)	 [Intentionally Omitted].  

 

	 	(e)	 [Intentionally Omitted]. 

 

	 	(f)	 Benefit Continuation. Subject to subsections (h) and (i) below and Section 4, if the Eligible
Employee incurs a Severance during the Change in 

  
 5 

	 	
Control Protection Period, commencing on the date immediately following such Eligible Employee’s Severance Date and continuing for 18 months (or such lesser time as required to avoid the
imposition of additional taxes under Section 409A of the Code) (the “Welfare Benefit Continuation Period”), the Company shall cover the Eligible Employee under the same type of Employer-sponsored group health plan and dental
plan (e.g., individual or family coverage) and group life insurance in which he was covered as of his Severance Date. The Eligible Employee shall receive such continued coverage under the same terms and conditions (e.g., any
requirement that employees pay all or any portion of the cost of such coverage) that would apply if the Eligible Employee had continued to be an employee of the Employer during the Welfare Benefit Continuation Period. 

For each month during the Welfare Benefit Continuation Period in which the Eligible Employee’s continued coverage under an insured plan is
not possible, the Company shall, in lieu of providing the coverage described in the preceding paragraph, make a monthly cash payment to the Eligible Employee equal to the monthly premium the Employer would be charged for coverage of a
similarly-situated employee. The Company shall not be obligated to “gross up” or otherwise compensate the Eligible Employee for any taxes due on amounts paid pursuant to the preceding sentence. 

Notwithstanding any other provision of this subsection (f), the Company’s obligation to provide continued coverage (or, in lieu thereof,
make a cash payment) pursuant to this subsection (f) shall expire on the date the Eligible Employee becomes covered under one or more plans sponsored by a new employer (other than a successor to the Company) that, at the sole discretion of the
Administrator, are determined to provide coverage at least equivalent in the aggregate to the benefits continued under this subsection (f). The coverage period for purposes of the group health continuation requirements of Section 4980B of the
Code shall commence at the expiration of the Welfare Benefit Continuation Period. 
  

	 	(g)	 Outplacement Services. Subject to subsection (i) below and Section 4, if the Eligible Employee
incurs a Severance during the Change in Control Protection Period, the Company shall provide him with reasonable outplacement services for up to 12 months following the Severance Date. 

 

	 	(h)	 Release. The Eligible Employee shall not be eligible to receive any Change in Control Severance Benefits
provided in this Section 3 (other than payments under Section 3(b)) unless he first executes a written release and agreement provided by the Company and does not revoke such release and agreement within the time permitted therein for such
revocation. 

  
 6 

	 	(i)	 Restriction on Timing of Distribution. Anything in this Agreement to the contrary notwithstanding, if
(1) on the Eligible Employee’s Severance Date, any of the Company’s stock is publicly traded on an established securities market or otherwise (within the meaning of Section 409A(a)(2)(B)(i) of the Code) and (2) as a result
of such termination, the Eligible Employee would receive any payment that, absent the application of this Section 3(i), would be subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the
application of Section 409A(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (x) six months after the Eligible Employee’s Severance Date, (y) the Eligible Employee’s death
or (z) such other date as will cause such payment not to be subject to such interest and additional tax. 

4.    Reduction of Change in Control Severance Benefits. 
  

	 	(a)	 Reduction of Payments. To the extent necessary to avoid imposition of the excise tax under
Section 4999 of the Code in connection with a Change in Control, the amounts payable or benefits to be provided to the Eligible Employee shall be reduced such that the reduction of compensation to be provided to the Eligible Employee is
minimized. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but payable at different times,
such amounts shall be reduced on a pro rata basis (but not below zero). 

  

	 	(b)	 Determination. The determination that the Eligible Employee’s Payment would cause him to become
subject to the excise tax imposed under Section 4999 of the Code and the calculation of the amount of any reduction, shall be made, at the Company’s discretion, by the Company’s outside auditing firm or by a nationally-recognized
accounting or benefits consulting firm designated by the Company prior to a Change in Control. The firm’s expenses shall be paid by the Company. 

  

	 	(c)	 Payment of Remaining Benefits. If a determination is made that the Eligible Employee’s Change in
Control Severance Benefits provided in Section 3(c) must be reduced, payment of the remaining Change in Control Severance Benefits provided in Section 3(c) shall be made in a lump sum cash payment no later than 10 days after the latter of
the Severance Date or the date the determination is made. 

 5.    Taxes; Withholding. The Eligible Employee
shall be responsible for the payment of all applicable local, state and federal taxes associated with the Eligible Employee’s receipt of Change in Control Severance Benefits hereunder, and the Company shall have the right to deduct from any
distributions hereunder any such taxes or other amounts required by law to be withheld therefrom. 

  
 7 

 6.    Claims Procedures. 

 

	 	(a)	 Applications for Benefits and Inquiries. Any application for benefits, inquiries about this Agreement or
inquiries about present or future rights under this Agreement must be submitted to the Administrator in writing. 

  

	 	(b)	 Denial of Claims. In the event that any application for benefits is denied in whole or in part, the
Administrator must notify the applicant, in writing, of the denial of the application, and of the applicant’s right to review the denial. The written notice of denial will be set forth in a manner designed to be understood by the applicant, and
will include specific reasons for the denial, specific references to the provisions of this Agreement upon which the denial is based, a description of any additional material or information necessary for the applicant to perfect the claim and an
explanation of why such material or information is necessary, and an explanation of the review procedure, including the applicant’s right to bring a civil action under Section 502(a) of ERISA following an adverse decision on review. This
written notice will be given to the applicant within 90 days after the Administrator receives the application, unless special circumstances require an extension of time, in which case, the Administrator has up to an additional 90 days. If an
extension of time is required, written notice of the extension will be furnished to the applicant before the end of the initial 90-day period. This notice of extension will describe the special circumstances
necessitating the additional time and the date by which the Administrator expects to render a decision on the application. 

  

	 	(c)	 Request for a Review. Any person (or that person’s authorized representative) for whom an
application for benefits is denied, in whole or in part, may appeal the denial by submitting a written request for a review to the Administrator within 60 days after the application is denied. The Administrator will give the applicant (or his or her
authorized representative) an opportunity to review pertinent documents in preparing a request for a review and submit written comments, documents, records and other information relating to the claim. 

 

	 	(d)	 Decision on Review. The Administrator will provide written notice of its decision on review within 60
days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional 60 days). If an extension for review is required, written notice of the extension will be furnished to the applicant within the
initial 60-day period. This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Administrator expects to render a decision on review. In the
event that the Administrator confirms the denial of the application for benefits in whole or in part, the notice will outline, in a manner calculated to be understood by the applicant, the specific reasons for the decision, the specific provisions
of this Agreement upon which the decision is based, a statement that the 

  
 8 

	 	
applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the applicant’s claim for
benefits, and a statement of the applicant’s right to bring an action under Section 502(a) of ERISA.

  

	 	(e)	 Rules and Procedures. The Administrator may establish rules and procedures, consistent with this
Agreement and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims. 

7.    Immediate Vesting of Equity-Based Compensation Awards upon a Change in Control. If a Change in Control occurs during the term
of this Agreement, (1) the unexercised portions of all Options and SARs (as defined in the Incentive Plan) granted to the Eligible Employee under the Incentive Plan that have not expired or been forfeited pursuant to their terms shall
automatically accelerate and become fully exercisable, (2) the restrictions and conditions on all outstanding Restricted Stock and Restricted Stock Units (as defined in the Incentive Plan) granted to the Eligible Employee that have not expired
or been forfeited pursuant to their terms shall immediately lapse and such Restricted Stock and Restricted Stock Units shall vest, and (3) all outstanding Restricted Stock Units and Restricted Stock (as defined in the Incentive Plan) granted to
the Eligible Employee that are based upon performance of the Company over a certain period of time shall become payable at the Eligible Employee’s target payment for the relevant performance period (regardless of the amount of the relevant
performance period that precedes the Change in Control). Where a Severance precedes the Change in Control (i.e., by operation of clause (1) of Section 1(g)) and the terms of any award granted to the Eligible Employee under the Incentive
Plan would otherwise call for the forfeiture of such award upon the termination of the Eligible Employee’s employment with the Company, such award shall not be deemed to be forfeited on account of the Eligible Employee’s Severance and
shall remain outstanding (subject to the other terms of the award, including its original term) as if the Change in Control preceded the Severance. 

8.    General Provisions 
  

	 	(a)	 Amendment and Termination. This Agreement may not be terminated prior to the end of its term without the
written consent of the Eligible Employee. This Agreement may be amended by the Committee at any time; provided, however, that this Agreement may not be amended without the written consent of the Eligible Employee if such amendment would in any
manner adversely affect the rights of the Eligible Employee under this Agreement. 

  

	 	(b)	 Assignment. Except as otherwise provided herein or by law, no right or interest of the Eligible Employee
under this Agreement shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted
assignment or transfer 

  
 9 

	 	
thereof shall be effective. Notwithstanding the preceding sentence, if the Eligible Employee is unable to care for his affairs when a payment is due under this Agreement to the Eligible Employee,
payment may be made directly to his legal guardian or personal representative. 

  

	 	(c)	 Compliance with Law. Notwithstanding subsection (a) above or any other provision of this Agreement
to the contrary, the Company may amend, modify or terminate this Agreement, without the consent of the Eligible Employee, as the Company deems necessary or appropriate to ensure compliance with any law, rule, regulation or other regulatory
pronouncement applicable to this Agreement, including, without limitation, Section 409A of the Code and any Treasury Regulations or other guidance thereunder. 

 

	 	(d)	 Governing Law. This Agreement shall be construed and enforced according to the laws of the Commonwealth
of Virginia to the extent not preempted by federal law, without regard to any conflict of laws principles that would apply the law of another jurisdiction. 

  

	 	(e)	 Severability. If any provision of this Agreement shall be held invalid or unenforceable, such invalidity
or unenforceability shall not affect any other provisions hereof, and this Agreement shall be construed and enforced as if such provisions had not been included. 

 

	 	(f)	 Headings and Terms. The headings and captions herein are provided for reference and convenience only,
shall not be considered part of the Agreement, and shall not be employed in the construction of the Agreement. Capitalized terms shall have the meanings given herein. Singular nouns shall be read as plural and masculine pronouns shall be read as
feminine, and vice versa, as appropriate. 

  

	 	(g)	 No Assurance of Employment. Neither the execution and delivery of this Agreement by the Company and the
Eligible Employee nor the creation of any fund, trust or account, nor the payment of any benefits shall be construed as giving the Eligible Employee the right to be retained in the service of the Employer, and the Eligible Employee shall remain
subject to discharge to the same extent as if this Agreement had never been entered into. 

  

	 	(h)	 Successors. This Agreement shall inure to the benefit of and be binding upon the heirs, executors,
administrators, successors and assigns of the parties, including the Eligible Employee and any successor to the Company. If the Eligible Employee incurs a Severance during the Change in Control Protection Period but dies before his Change in Control
Severance Benefits have been fully paid, any unpaid amounts shall be paid to the executor, personal representative or administrators of the Eligible Employee’s estate in a lump sum payment no later than the fifteenth day of the third calendar
month following the Eligible Employee’s death. 

  
 10 

	 	(i)	 Notice. 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 the Eligible Employee, to the Eligible Employee’s address as shown on the Company’s records, and, in the case of the Company or the Administrator, to the Company’s principal office, to the
attention of the Chief Executive Officer or to the Chairman of the Committee, as applicable, 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. 

  

	 	(j)	 Entire Agreement. This Agreement sets forth the entire agreement of the parties with respect to the
subject matter hereof. Any and all prior agreements or understandings with respect to such matters are hereby superseded. 

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed as of the day first above written. 

 

			
	TREX COMPANY, INC.
		
	By:	 	 /s/ William R. Gupp

		 	William R. Gupp, Senior Vice President,
		 	General Counsel and Secretary

			
	
	ELIGIBLE EMPLOYEE
	
	 /s/ Bryan H. Fairbanks

	Name:	 	Bryan H. Fairbanks

  
 11

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