Document:

Exhibit 10.1

 Exhibit 10.1 
 Trex Company, Inc. 
 Description of Non-Employee Director Compensation 
 Non-employee directors of Trex Company receive cash and stock-based compensation under the Trex Company, Inc. Amended and Restated 1999 Incentive Plan for Outside
Directors, which is referred to herein as the “Outside Director Plan.” The Outside Director Plan is administered by the nominating/corporate governance committee. All stock-based grants awarded as compensation to non-employee directors are
issued under the Trex Company, Inc. 2005 Stock Incentive Plan, which (together with Trex Company’s predecessor stock incentive plan amended and restated by the current plan) is referred to herein as the “Stock Incentive Plan.” Unless
and until the board of directors determines otherwise, stock-based grants under the Outside Director Plan will be made in the form of stock-settled stock appreciation rights, or “SARs.” 
 Upon initial appointment to the board of directors, non-employee directors will receive awards of SARs valued at $28,800 (based on the Black-Scholes valuation model of
Trex Company shares). For service on the board of directors, each non-employee director receives an annual retainer of $24,000, a $1,000 meeting fee for each in-person meeting attended, a $500 fee for each telephonic meeting and an annual award of
SARs valued at $28,800 (based on the Black-Scholes valuation model of Trex Company shares). Each member of the audit committee (other than the chairman) receives an annual committee retainer of $6,500, each member of the compensation committee
(other than the chairman) receives an annual committee retainer of $4,000, and each member of the nominating/corporate governance committee (other than the chairman) receives an annual committee retainer of $3,500. The chairman of the audit
committee receives an annual committee fee of $12,500, and the chairmen of the compensation and the nominating/corporate governance committees receive an annual committee fee of $7,500. Each committee member on any of the committees, including the
chairman of the committee, receives a $1,000 meeting fee for a special meeting not held in conjunction with a scheduled board of directors meeting, and a $500 fee for each telephonic meeting not held in conjunction with a telephonic board of
directors meeting. 
 The $24,000 annual director fee and the annual committee fees are paid in the form of cash or grants of SARs (based on the
Black-Scholes valuation model of Trex Company shares), or a combination of these forms of consideration, based on the percentages of the forms of consideration elected by the serving director, in four equal quarterly installments in arrears on the
first business day following each quarter of the fiscal year in which the eligible director completes board or committee service. The annual grants of SARs are made on the date of the first regularly scheduled board of directors meeting after
June 30 of each year. All grants of SARs vest immediately upon grant and have a term of ten years. All fees described above paid in arrears were prorated for any partial periods served. 
 Trex Company does not provide pensions, medical benefits or other benefit programs to directors.Exhibit 10.2

 Exhibit 10.2 
 Trex Company, Inc. 
 Description of Management Compensatory Plans and Arrangements 

Components of Executive Compensation 
 In accordance with the rules
of the New York Stock Exchange, all components of compensation for the chief executive officer and other executive officers of Trex Company are determined by the compensation committee of the board of directors, all of whom meet the independence
requirements prescribed by such rules. 
 Trex Company’s executive compensation program includes a base salary, annual cash bonuses and long-term
incentive compensation in the form of stock options, stock appreciation right awards, performance shares and other equity-based awards issued under the Trex Company, Inc. 2005 Stock Incentive Plan (the “Stock Incentive Plan”). 

Base Salary. Base salaries are the only non-variable element of Trex Company’s total compensation. They reflect each executive officer’s
responsibilities, the impact of each executive officer’s position, and the contributions each executive officer delivers to Trex Company. Salaries are determined by competitive levels in the market, based on Trex Company’s peer group and
the results of executive compensation surveys, for executives with comparable responsibilities and job scope, as well as Trex Company’s internal equity considerations. Each year, at its February meeting, the compensation committee reviews and
establishes the base salaries of Trex Company’s executive officers. Salary increases, if any, are based on individual performance, market conditions and company performance. To gauge market conditions, the compensation committee evaluates the
peer and market data compiled by its consultant. Base salaries are set upon review of the peer and market data provided to the compensation committee upon consideration of the executive officer’s experience, tenure, performance and potential.

 Annual Cash Bonuses. Trex Company pays annual cash bonuses to its Chief Executive Officer, other executive officers, and other key employees based
upon the achievement of Trex Company’s planned earnings per share objective, or “EPS,” for the fiscal year, which is approved by the board of directors in the first quarter of the year, and individual performance. The weight of each
measure differs with the officer’s grade level. Individual performance targets for the Chief Executive Officer and Chief Operating Officer are developed by the compensation committee of the board of directors in February of the applicable year,
and individual performance targets for the other executive officers are recommended by the Chief Executive Officer at the beginning of the applicable year. 
 For each fiscal year, each participant in the plan is assigned a “target bonus,” which is expressed as a percentage of the participant’s annual base salary. The actual amount of cash bonuses paid to a participant is
determined by multiplying their target bonus by a performance percentage, which is calculated based on the extent to which the performance objective is achieved. The compensation committee has the discretion to award a bonus that exceeds the
otherwise applicable maximum bonus determined as provided above. Bonus payments are conditional upon the participant’s continued employment by Trex Company through the date of grant, and are pro rated for employees who have served for less than
a full year. 
 Long-Term Incentive Compensation. Trex Company maintains a long-term executive incentive compensation plan for the benefit of its
Chief Executive Officer, other executive officers, and other key 

 
employees. Awards under the plan are in the form of equity-based awards under the Stock Incentive Plan and are made by the compensation committee. The total
target long-term incentive award for each participant in the plan is expressed as a percentage of the participant’s base salary. The compensation committee retains discretion to adjust the target percentage award based upon each person’s
current performance and anticipated future contributions to Trex Company’s results, as well as the amount and terms of equity-based awards previously granted by Trex Company to such person. 
 Personal Benefits and Perquisites. Trex Company maintains a limited number of benefit programs available solely to Trex Company’s executive officers. The
personal benefits are considered to constitute a part of Trex Company’s overall program and are presented in this light as part of the total compensation package approved by the compensation committee at the time of an executive officer’s
hiring or promotion, as part of the compensation committee’s review of each executive officer’s annual total compensation, and in compensation discussions with executive officers. 
 Other Compensatory Plans 
 Trex Company’s executive officers also
are eligible to participate in Trex Company’s defined contribution money purchase pension plan and 401(k) plan and Trex Company’s employee profit sharing plan, each of which is available to all regular Trex Company employees.EXHIBIT 10.8

 Exhibit 10.8 
 TREX COMPANY, INC. 
 2005 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK AGREEMENT 
 Trex
Company, Inc., a Delaware corporation (the “Company”), hereby grants shares of its common stock, $.01 par value (the “Stock”), to the Grantee named below, subject to the vesting conditions set forth in the attachment. Additional
terms and conditions of the grant are set forth in this cover sheet, in the attachment and in the Company’s 2005 Stock Incentive Plan (the “Plan”). 
 Grant Date:                              
 Name of Grantee:
                             
 Number of Shares of Stock Covered by Grant:                      
 Purchase Price per Share of Stock: $.01 
 By signing
this cover sheet, you agree to all of the terms and conditions described in the attached Agreement and in the Plan. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this
Agreement should appear to be inconsistent. 
  

			
	Grantee:	 	  

		 	(Signature)
		
	Company:	 	
		
		 	Anthony J. Cavanna
		 	Chairman and Chief Executive Officer

 Attachments: 
 Restricted Stock Agreement 
 2005 Stock Incentive Plan and Prospectus 
 Please sign, return one copy of this Agreement to Corporate Human Resources, and retain the second copy for your records. This is not a
stock certificate or a negotiable instrument. 

 TREX COMPANY, INC. 
 2005 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK AGREEMENT 
  

			
	Restricted Stock/ Nontransferability	  	This grant is an award of Stock in the number of shares set forth on the cover sheet, at the purchase price set forth on the cover sheet, and subject to the vesting conditions described below
(the “Restricted Stock”). To the extent not yet vested, your Restricted Stock may not be transferred, assigned, pledged or hypothecated, whether by operation of law or otherwise, nor may the Restricted Stock be made subject to execution,
attachment or similar process.
		
	Issuance and Vesting	  	The Company will issue your Restricted Stock in your name as of the Grant Date.
		
		  	Your right to the Stock under this Restricted Stock grant will vest as to
                         of the total number of shares covered by this grant, as shown on the cover sheet, on
                                        
                    ; provided, that, you continue to provide services to the Company or a Subsidiary as an employee or a Service Provider
(“Services”) on each such vesting date. The resulting aggregate number of vested shares of Stock will be rounded to the nearest whole number, and you may not vest in more than the number of shares covered by this grant.
		
		  	No additional shares of Stock will vest after you have ceased to provide Services for any reason.
		
		  	Upon the vesting of the shares of Restricted Stock hereunder, the Company will issue you a share certificate for such shares, free of the legend set forth on page 5 hereof. The Purchase Price
for the Restricted Stock shall be deemed to be paid at that time by your services to the Company.
		
		  	Notwithstanding any provision in this Agreement to the contrary, if you should incur an Involuntary Termination within a one year period following a Change in Control, the Restricted Stock
shall become 100% vested at the time of your termination. “Change in Control” means the dissolution or liquidation of the Company or a merger, consolidation, or reorganization of the Company with one or more other entities in which the
Company is not the surviving entity, (ii) a sale of substantially all of the assets of the Company to another person or entity, or (iii) any transaction (including without limitation a merger or reorganization in

  

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	 	  	which the Company is the surviving entity) which results in any person or entity (other than persons who are
shareholders or Affiliates immediately prior to the transaction) owning 50% or
more of the combined voting
power of all classes of stock of the Company. “Involuntary Termination” means a termination of employment
by the Company for a reason other than Cause or by you if the Company takes any action which
results in a
diminution in any material respect with your position (including status, offices, titles and reporting
requirements), compensation, authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial
and inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by you.
		
	Service Termination	  	Upon the termination of your Services, other than by reason of your death, permanent and total disability (within the meaning of Section 22(e)(3) of the Code) or retirement, any shares of
Stock that have not vested hereunder shall immediately be deemed forfeited.
		
		  	In the event of the termination of your Services because of your death, permanent and total disability (within the meaning of Section 22(e)(3) of the Code) or retirement, any shares of Stock
that have not vested hereunder shall immediately become fully vested.
		
	Escrow	  	The certificates for the Restricted Stock shall be deposited in escrow with the Secretary of the Company to be held in accordance with the provisions of this paragraph. In the alternative,
the Company may use the book-entry method of share recordation to indicate your share ownership and the restrictions imposed by this Agreement. If share certificates are issued, each deposited certificate shall be accompanied by a duly executed
Assignment Separate from Certificate in the form attached hereto as Exhibit A. The deposited certificates shall remain in escrow until such time or times as the certificates are to be released or otherwise surrendered for cancellation as
discussed below. Upon delivery of the certificates to the Company, you shall be issued an instrument of deposit acknowledging the number of shares of Stock delivered in escrow to the Secretary of the Company.
		
		  	All regular cash dividends on the Stock (or other securities at the time held in escrow) shall be paid directly to you and shall not be held in escrow. However, in the event of any stock
dividend, stock split,

  

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	 	  	recapitalization or other change affecting the Stock as a class effected without receipt of consideration, or in
the event of a stock split, a stock dividend or a similar change in the
Stock, any new, substituted or
additional securities or other property which is by reason of such transaction distributed with respect to the
Stock shall be immediately delivered to the Secretary of the Company to be held in escrow hereunder,
but
only to the extent the Stock is at the time subject to the escrow requirements hereof.
		
		  	As your interest in the shares vests as described above, the certificates for such vested shares shall be released from escrow and delivered to you, at your request.
		
	Withholding Taxes	  	You agree, as a condition of this grant, that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the vesting of Stock acquired under
this grant. In the event that the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to the vesting of shares arising from this grant, the Company shall have the right to require such
payments from you, withhold shares that would otherwise have been issued to you under this Agreement or withhold such amounts from other payments due to you from the Company or any Affiliate.
		
	Section 83(b) Election	  	Under Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), the difference between the purchase price paid for the shares of Stock and their fair market value on
the date any forfeiture restrictions applicable to such shares lapse will be reportable as ordinary income at that time. You may elect to be taxed at the time the shares are acquired rather than when such shares cease to be subject to such
forfeiture restrictions by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days after the Grant Date. You will have to make a tax payment to the extent the purchase price is less than the fair
market value of the shares on the Grant Date. No tax payment will have to be made to the extent the purchase price is at least equal to the fair market value of the shares on the Grant Date. The form for making this election is attached as
Exhibit B hereto. Failure to make this filing within the thirty (30) day period will result in the recognition of ordinary income by you (in the event the fair market value of the shares increases after the date of purchase) as the forfeiture
restrictions lapse.
		
		  	YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b), EVEN IF YOU

  

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	 	  	REQUEST THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON YOUR
BEHALF. YOU ARE RELYING SOLELY ON YOUR OWN ADVISORS WITH RESPECT TO THE
DECISION AS TO WHETHER OR NOT TO FILE
ANY 83(b) ELECTION.
		
	Retention Rights	  	This Agreement does not give you the right to be retained by the Company in any capacity. The Company reserves the right to terminate your service with the Company at any time and for any
reason.
		
	Shareholder Rights	  	You shall have the right to vote the Restricted Stock and, subject to the provisions of this Agreement, to receive any dividends declared or paid on such stock. Any distributions you receive
as a result of any stock split, stock dividend, combination of shares or other similar transaction shall be deemed to be a part of the Restricted Stock and subject to the same conditions and restrictions applicable thereto. The Company may in its
sole discretion require any dividends paid on the Restricted Stock to be reinvested in shares of Stock, which the Company may in its sole discretion deem to be a part of the shares of Restricted Stock and subject to the same conditions and
restrictions applicable thereto. Except as described in the Plan, no adjustments are made for dividends or other rights if the applicable record date occurs before your stock certificate is issued.
		
	Adjustments	  	In the event of a stock split, a stock dividend or a similar change in the Stock, the number of shares covered by this grant may be adjusted (and rounded down to the nearest whole number)
pursuant to the Plan. Your Restricted Stock shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.
		
	Legends	  	All certificates representing the Stock issued in connection with this grant shall, where applicable, and if issued prior to vesting, have endorsed thereon the following
legend:
		
		  	 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT
BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR THE HOLDER’S PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE

  

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		  	 PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY
THIS CERTIFICATE.”

		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware, other than any conflicts or choice of law rule or principle that might otherwise refer construction or
interpretation of this Agreement to the substantive law of another jurisdiction.
		
	The Plan	  	The text of the Plan is incorporated in this Agreement by reference. Certain capitalized terms used in this Agreement are defined in the Plan, and have the meaning set forth in the
Plan.
		
		  	This Agreement and the Plan constitute the entire understanding between you and the Company regarding this grant of Restricted Stock. Any prior agreements, commitments or negotiations
concerning this grant are superseded.
		
	Consent to Electronic Delivery	  	The Company may choose to deliver certain statutory materials relating to the Plan in electronic form. By accepting this grant you agree that the Company may deliver the Plan prospectus and
the Company’s annual report to you in an electronic format. If at any time you would prefer to receive paper copies of these documents, as you are entitled to receive, the Company would be pleased to provide copies. Please contact the Director
of Human Resources to request paper copies of these documents.

 By signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan. 
  

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 EXHIBIT A 
 ASSIGNMENT SEPARATE FROM CERTIFICATE 
 FOR VALUE RECEIVED,
                             hereby sells, assigns and transfers unto Trex Company, Inc., a Delaware
corporation (the “Company”),                             
(                            ) shares of common stock of the Company represented by Certificate No.
___ herewith and does hereby irrevocable constitute and appoint                              Attorney
to transfer the said stock on the books of the Company with full power of substitution in the premises. 
 Dated:
                        , 200     
  

	
	  
	Print Name
	  
	Signature

 Spouse Consent (if applicable) 
                                     
(Purchaser’s spouse) indicates by the execution of this Assignment his or her consent to be bound by the terms herein as to his or her interests, whether as community property or otherwise, if any, in the shares of common stock of the Company.

  

	
	  
	Signature

 INSTRUCTIONS: PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE. THE PURPOSE OF THIS
ASSIGNMENT IS TO ENABLE THE COMPANY TO EXERCISE ITS “REPURCHASE OPTION” SET FORTH IN THE AGREEMENT WITHOUT REQUIRING ADDITIONAL SIGNATURES ON THE PART OF PURCHASER. 

 EXHIBIT B 
 ELECTION UNDER SECTION 83(b) OF 
 THE INTERNAL REVENUE CODE 
 The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and
supplies the following information in accordance with the regulations promulgated thereunder: 
  

			
	1.	  	The name, address and social security number of the undersigned:
		
		  	Name: ________________________________________________
		
		  	Address: ______________________________________________
		
		  	_____________________________________________________
		
		  	Social Security No. : ____________________________________
		
	2.	  	Description of property with respect to which the election is being made:
		
		  	                     shares of common stock, par value $.01 per share, of Trex
Company, Inc., a Delaware corporation (the “Company”).
		
	3.	  	The date on which the property was transferred is
                            , 2006.
		
	4.	  	The taxable year to which this election relates is calendar year 2006.
		
	5.	  	Nature of restrictions to which the property is subject:
	
	 The shares of stock are subject to the provisions of a Restricted Stock Agreement between the undersigned and the Company. The shares of stock are
subject to forfeiture under the terms of the Agreement.

		
	6.	  	The fair market value of the property at the time of transfer (determined without regard to any lapse restriction) was
$                      per share, for a total of $
                    .
		
	7.	  	The amount paid by taxpayer for the property was $
                    .
		
	8.	  	A copy of this statement has been furnished to the Company.

 Dated:
                            , 2006 
  

	
	  
	Taxpayer’s Signature
	
	  
	Taxpayer’s Printed Name

 PROCEDURES FOR MAKING ELECTION 
 UNDER INTERNAL REVENUE CODE SECTION 83(b) 
 The following procedures must be followed with respect to the attached form for making an
election under Internal Revenue Code section 83(b) in order for the election to be effective:1 
 1. You must file one copy of the completed election form with the IRS Service Center where you file your federal income tax returns within thirty
(30) days after the Grant Date of your Restricted Stock. 
 2. At the same time you file the election form with the IRS, you must also
give a copy of the election form to the Secretary of the Company. 
 3. You must file another copy of the election form with your
federal income tax return (generally, Form 1040) for the taxable year in which the stock is transferred to you. 

	 1
	 Whether or not to make the election is your decision and may create tax consequences for you. You are
advised to consult your tax advisor if you are unsure whether or not to make the election.

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