Document:

Exhibit 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	 	2
	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	 	          Option/SAR Portion of Annual Director Fee	 	3
		 	4.2.	 	Annual Committee Fee	 	3
		 	4.3.	 	Election	 	4
		 	4.4	 	Proration	 	4
		 	4.5	 	Initial Grant upon Election to Board	 	4
	5.	 		 	GRANT DATE	 	4
	6.	 		 	OPTION/SAR PRICE	 	5
	7.	 		 	TERM OF OPTIONS/SARS	 	5
	8.	 		 	VESTING OF OPTIONS/SARS	 	5
	9.	 		 	SERVICE TERMINATION	 	5
	10.	 		 	ELECTION TO RECEIVE ADDITIONAL OPTIONS OR SARS	 	5
		 	10.1.	 	Election Form	 	5
		 	10.2.	 	Time for Filing Election Form	 	6
	11.	 		 	ADMINISTRATION	 	6
		 	11.1.	 	Committee	 	6
		 	11.2.	 	Rules for Administration	 	6
		 	11.3.	 	Committee Action	 	6
		 	11.4.	 	Delegation	 	6
		 	11.5.	 	Services	 	7
		 	11.6.	 	Indemnification	 	7
	12.	 		 	AMENDMENT AND TERMINATION	 	7
	13.	 		 	GENERAL PROVISIONS	 	7
		 	13.1.	 	Limitation of Rights	 	7
		 	13.2.	 	No Rights as Stockholders	 	7
		 	13.3.	 	Rights as a Non-Employee Director	 	7
		 	13.4.	 	Assignment, Pledge or Encumbrance	 	7
		 	13.5.	 	Binding Provisions	 	8
		 	13.6.	 	Notices	 	8
		 	13.7.	 	Governing Law	 	8
		 	13.8.	 	Withholding	 	8
		 	13.9.	 	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. 2005 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 Options or SARs, as provided in Sections 4.1.1 and 4.3 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 Options or SARs. 
 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 “Fair Market Value” means the closing price of a share of Common Stock reported on the New York Stock Exchange (the “NYSE”) on the date Fair Market Value is being determined, provided that if there is no
closing price reported on such date, the Fair Market Value of a share of Common Stock on such date shall be deemed equal to the closing price as reported by the NYSE for the last preceding date on which sales of shares of Common Stock were reported.
Notwithstanding the foregoing, in the event that the shares of Common Stock are listed upon more than one established stock exchange, “Fair Market Value” means the closing price of the shares of Common Stock reported on the exchange that
trades the largest volume of shares of Common Stock on the date Fair Market Value is being determined. If the Common Stock is not at the time listed or admitted to trading on a stock exchange, Fair Market Value means the mean between the lowest
reported bid price and highest reported asked price of the Common Stock on the date in question in the over-the-counter market, as such prices are reported in a publication of general circulation selected by the Board and regularly reporting the
market 
  

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 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. 
 1.11
“Grant Date” has the meaning set forth in Section 5 hereof. 
 1.12 “Option” means a non-qualified
Option granted pursuant to the Trex Company, Inc. 2005 Stock Incentive Plan as may be amended from time to time. 
 1.13 “Option
Agreement” means the written agreement between the Company and the Participant that evidences and sets out the terms and conditions of the Option. 
 1.14 “Option/SAR Portion of the Annual Director Fee” means the portion of the Annual Director Fee to be received in Options or SARs, as provided in Section 4.1.2 hereof. 
 1.15 “Option Price” means the purchase price for each share of Common Stock subject to an Option. 
 1.16 “Participant” for any Plan Year means an Eligible Director who participates in the Plan for that Plan Year in accordance with
Section 10.1 hereof. 
 1.17 “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. 
 1.18 “Plan Year” means the twelve-month period beginning
on July 1 and ending on June 30. 
 1.19 “SAR Agreement” means the written agreement between the Company and the
Participant that evidences and sets out the terms and conditions of the SARs. 
 1.20 “Stock Appreciation Right” or
“SAR” means a right granted pursuant to, and in accordance with the terms of, the Trex Company, Inc. 2005 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 6 hereof. 
 1.21 “SAR
Price” means the grant price of the SAR. 
 1.22 “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. 
  

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 3. SHARES SUBJECT TO THE PLAN 
 The shares of Common Stock issuable under the Plan shall be issued pursuant to the Trex Company, Inc. 2005 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 twenty four thousand
dollars ($24,000), plus one thousand dollars ($1,000) for each Board meeting that the Eligible Director attends personally, and five hundred dollars ($500) for each Board meeting that the Eligible Director participates in telephonically
(collectively, 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. 
 4.1.2 Option/SAR Portion of the Annual Director Fee. Each Eligible Director shall receive either Options or SARs (the “Option/SAR Portion of the Annual Director Fee”) valued at twenty eight thousand
eight hundred dollars ($28,800), with the number of Options or SARs granted being determined by dividing such amount 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. 2005 Stock Incentive Plan. The form of the grant (either Options or SARs, or some combination) shall be determined by the Board prior to the Grant Date. The
Option/SAR Portion of the Annual Director Fee shall be paid in arrears as provided in Section 5 below. 
 4.2 Annual Committee Fee

 Each Eligible Director shall be entitled to an Annual Committee Fee, which may be adjusted by the Board from time to time, as follows
(a) twelve thousand five hundred dollars ($12,500) for the Audit Committee Chairman, (b) six thousand five hundred dollars ($6,500) for each Audit Committee member (other than the Chairman), (c) seven thousand five hundred dollars
($7,500) for the Nominating/Corporate Governance Committee Chairman and the Compensation Committee Chairman, (d) four thousand dollars ($4,000) for each Compensation Committee member (other than the Chairman), and (e) three thousand five
hundred dollars ($3,500) for each Nominating/Corporate Governance Committee member (other than the Chairman). In addition, each Eligible Director shall receive one thousand dollars ($1,000) for 
  

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 each Committee meeting that the Eligible Director attends personally not held in conjunction with a Board of Directors
meeting, and five hundred dollars ($500) for each Committee meeting that the Eligible Director participates in telephonically not held in conjunction with a Board of Directors meeting. 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 10 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 Options or SARs of equal value. In such event, the value of such Options or
SARs shall be 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. 2005 Stock Incentive Plan. The Board shall determine whether payment is
made in the form of Options or SARs, or some combination, prior to the Grant Date. 
 4.4 Proration 
 The Cash Portion of the Annual Director Fee, the Option/SAR 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 Options or SARs valued at twenty eight thousand
eight hundred dollars ($28,800), with the number of Options or SARs granted being determined by dividing such amount 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. 2005 Stock Incentive Plan. The form of the grant (either Options or SARs, or some combination) shall be determined by the Board prior to the Grant Date.

 5. GRANT DATE 
 The date of grant for
the Option/SAR 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 SARs or Options, as the case may be, issued in lieu of the Cash Portion of the Annual Director Fee and the Annual Committee Fee, as provided in Section 10 hereof, shall be the date such Fees would otherwise be due (each of such
dates being referred to as the “Grant Date”). 
  

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 6. OPTION/SAR PRICE 
 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. 
 7. TERM OF OPTIONS/SARS 
 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. 
 8. VESTING OF OPTIONS/SARS

 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. 
 9. SERVICE TERMINATION 
 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 pursuant to Section 7 hereof, 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. 
 10.
ELECTION TO RECEIVE ADDITIONAL OPTIONS OR SARS 
 10.1 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 Options
or SARs 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 Options or SARs, at the election of the Board, 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. Options or SARs issued pursuant to an election made under this
Section 10 shall vest in accordance with the schedule set forth in Section 8 hereof. 
  

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 10.2 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. 
 11. ADMINISTRATION 
 11.1 Committee 
 The general
administration of the Plan and the responsibility for carrying out its provisions shall be placed in the Nominating/Corporate Governance Committee. 
 11.2 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. 
 11.3 Committee Action 
 Any act which the Plan authorizes or requires the Committee to do may be done by a majority of its members. The action of such majority, expressed from
time to time by a vote at a meeting (i) in person, or (ii) by telephone or other means by which all members can hear one another shall have the same effect for all purposes as if assented to by all members of the Committee at the time in
office. The Committee may also act without a meeting by unanimous written consent. 
 11.4 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. 
  

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 11.5 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. 
 11.6 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. 
 12. 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. 
 13. GENERAL PROVISIONS 
 13.1 Limitation of Rights 
 No Participant shall have any right to any payment or benefit hereunder except to the extent provided in the Plan. 
 13.2 No Rights as Stockholders 
 Nothing contained in this Plan shall be construed as giving any Participant rights as a stockholder of the Company. 
 13.3
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. 
 13.4 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. 
  

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 13.5 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. 
 13.6 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. 
 13.7 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. 
 13.8 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. 
 13.9 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 and July 20, 2006. 
  

 -8-Exhibit 10.2

 Exhibit 10.2 
 TREX COMPANY, INC. 
 Amended and Restated 1999 Incentive Plan for Outside Directors 

Non-Incentive Stock Option Agreement for Directors 
 Grant Date: 
 Stock Option Exercise Price: 
 Last Date to Exercise: 
 Number of Shares of Common Stock 
 Covered by Grant of Options: 
 We are pleased to inform you that the Board of Directors or the Compensation Committee of the
Board of Directors has granted you an option to purchase Trex Company, Inc. common stock. Your grant has been made under the Company’s Amended and Restated 1999 Incentive Plan for Outside Directors (the “Plan”), which, together with
the terms contained in this Agreement, sets forth the terms and conditions of your grant and is incorporated herein by reference. A copy of the Plan is attached. Please review it carefully. If any provisions of the Agreement should appear to be
inconsistent with the Plan, the Plan will control. 
  

	
	 This stock option grant has been executed
 and delivered
as of January 3, 2006 on
 behalf of Trex Company, Inc.

	
	  

	(Chairman’s Name)
	Chairman and Chief Executive Officer

  

			
	ACCEPTED AND AGREED TO:	 	
		
	  
	 	
	(Director’s Name)	 	

 This is not a stock certificate or a negotiable instrument. Transferable only pursuant to
Section 11.2 of the Company’s 2005 
 Stock Incentive Plan. 

 1. Vesting: 
 Subject
to the terms of the Plan, the Option becomes vested as to 100% of the shares of Stock purchasable pursuant to the Option on the date of grant of the Option. 
 2. Exercise: 
 You may exercise this Option, in whole or in part, to purchase a whole number of vested shares at any time of not less than
100 shares, unless the number of shares purchased is the total number available for purchase under the Option, by following the exercise procedures as set forth in the Plan. All exercises must take place before the Last Date to Exercise (shown on
the covers sheet), or such earlier termination of the Option. The number of shares you may purchase as of any date cannot exceed the total number of shares vested by that date, less any shares you have previously acquired by exercising this Option.

 3. Option Termination: 
 Your Option will terminate
immediately upon termination of your service for “Cause.” If your service terminates for a reason other than for Cause, the Option will expire five (5) years after your termination, or, if earlier, immediately after the Last Date to
Exercise. “Cause” means, as determined by the Board, (i) gross negligence or willful misconduct in connection with the performance of duties; (ii) conviction of a felony or of a crime involving moral turpitude; or
(iii) material breach of any term of any employment, consulting or other services, confidentiality, intellectual property or non-competition agreements. 
 4. Taxes and Withholding: 
 This Option shall not constitute an incentive stock option within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended. In the event that the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to the exercise or sale of shares arising from this grant, the Company shall have
the right to require such payments from you, or withhold such amounts from other payments due to you from the Company, a Subsidiary or an Affiliate. 
 5.
Transferability: 
 The Option may be transferred in a manner consistent with Section 10.2 of the Company’s 2005 Stock Incentive Plan.

 * * * * *

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