<SEC-DOCUMENT>0001193125-15-178754.txt : 20150508
<SEC-HEADER>0001193125-15-178754.hdr.sgml : 20150508
<ACCEPTANCE-DATETIME>20150508105935
ACCESSION NUMBER:		0001193125-15-178754
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20150506
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20150508
DATE AS OF CHANGE:		20150508

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TREX CO INC
		CENTRAL INDEX KEY:			0001069878
		STANDARD INDUSTRIAL CLASSIFICATION:	LUMBER & WOOD PRODUCTS (NO FURNITURE) [2400]
		IRS NUMBER:				541910453
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14649
		FILM NUMBER:		15844988

	BUSINESS ADDRESS:	
		STREET 1:		160 EXETER DRIVE
		CITY:			WINCHESTER
		STATE:			VA
		ZIP:			22603-8605
		BUSINESS PHONE:		5405426300

	MAIL ADDRESS:	
		STREET 1:		160 EXETER DRIVE
		CITY:			WINCHESTER
		STATE:			VA
		ZIP:			22603-8605
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d920750d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Current Report </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): May&nbsp;6, 2015 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>TREX COMPANY, INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>001-14649</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>54-1910453</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>incorporation or organization)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(I.R.S. Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification Number)</B></P></TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>160 Exeter Drive</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Winchester, Virginia</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>22603-8605</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(540) 542-6300</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Registrant&#146;s telephone number, including area code) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below): </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;1.01</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Entry Into a Material Definitive Agreement </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The disclosure set forth in Item&nbsp;5.02 below with regard
to the following agreements is incorporated herein by reference: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">Change-in-Control Severance Agreement, dated as of May&nbsp;6, 2015, between Trex Company, Inc. and James E. Cline; and </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">Severance Agreement, dated as of May&nbsp;6, 2015, between Trex&nbsp;Company, Inc. and James E. Cline. </TD></TR></TABLE> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;5.02</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Retirement of Ronald W. Kaplan as President and Chief Executive Officer effective August&nbsp;17, 2015 </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Pursuant to the terms of the Amendment and Restatement of Employment Agreement between Trex Company, Inc. (the &#147;Company&#148;) and Ronald
W. Kaplan, Chairman, President and Chief Executive Officer, dated July&nbsp;24, 2012 (&#147;Employment Agreement&#148;), the Company provided written notice to Mr.&nbsp;Kaplan on May&nbsp;6, 2015 that the Employment Agreement would not be extended
for an additional one year period upon its termination on August&nbsp;16, 2015. Accordingly, Mr.&nbsp;Kaplan will retire as President and Chief Executive Officer effective August&nbsp;17, 2015. Pursuant to the Employment Agreement, the Company will
pay to Mr.&nbsp;Kaplan, within 10 days after August&nbsp;16, 2015, a lump sum cash payment equal to 1.5 times the sum of his base salary then in effect and 100% of his targeted cash bonus for the 2015 fiscal year. This payment will be in the amount
of $1,713,810. In addition, pursuant to the Employment Agreement, on August&nbsp;16, 2015, Mr.&nbsp;Kaplan shall become fully vested in all outstanding long-term incentive awards, including stock appreciation rights, restricted shares, and
performance shares (at the targeted payment level), with the stock appreciation rights being exercisable for a period of 5 years after August&nbsp;16, 2015. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Kaplan will continue to serve beyond August&nbsp;17, 2015 as Chairman of the Board of Directors. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Appointment of James E. Cline as President and Chief Executive Officer, and as a Director </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">On May&nbsp;6, 2015, the Trex Board of Directors appointed James E. Cline, the Company&#146;s Senior Vice President and Chief Financial
Officer, to serve as the Company&#146;s President and Chief Executive Officer, to be effective on August&nbsp;17, 2015 upon Mr.&nbsp;Kaplan&#146;s retirement. Effective August&nbsp;17, 2015, Mr.&nbsp;Cline will also be appointed to the
Company&#146;s Board of Directors, and the size of the Board will be increased from seven members to eight members. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Cline has
served as Senior Vice President and Chief Financial Officer of the Company since August 2013 and as Vice President and Chief Financial Officer between March 2008 and July 2013. Mr.&nbsp;Cline served from July 2005 through December 2007 as the
President of Harsco GasServ, a subsidiary of Harsco Corporation and a manufacturer of containment and control equipment for the global gas industry. From January 2008 through February 2008, in connection with the purchase of Harsco GasServ by
Taylor-Wharton International LLC, which is owned by Windpoint Partners Company, Mr.&nbsp;Cline served as a consultant to the buyers by providing transition management and financial services. From April 1994 through June 2005, Mr.&nbsp;Cline served
as the Vice President and Controller of Harsco GasServ. Mr.&nbsp;Cline served in various capacities with Huffy Corporation from June 1976 to February 1994, including as the Director of Finance of its True Temper Hardware subsidiary, a manufacturer
of lawn care and construction products with nine manufacturing locations in the United States, Canada and Ireland. Mr.&nbsp;Cline received a B.S.B.A. degree in accounting from Bowling Green State University. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Effective upon his becoming President and Chief Executive Officer, Mr.&nbsp;Cline will receive an annual base salary of $500,000, and will be
a participant in the Company&#146;s Annual Cash Incentive Compensation Program and Long-Term Equity Incentive Compensation Program, as further described in the Company&#146;s Proxy Statement. Mr.&nbsp;Cline&#146;s target award under the Annual Cash
Incentive Compensation Program shall be 100% of his annual base salary, and his target award under the Long-Term Equity Incentive Compensation Program shall be 200% of his annual base salary. In addition, Mr.&nbsp;Cline will receive on
August&nbsp;17, 2015 an equity grant valued at $500,000, comprised of 50% stock appreciation rights and 50% time-based restricted stock, each vesting ratably over a 3 year period. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Cline has entered into a change-in-control severance agreement with the Company dated
May&nbsp;6, 2015. Under this agreement, if, within the period beginning 90 days before and ending two years after a change in control of the Company (as defined in the agreement), Mr.&nbsp;Cline&#146;s employment is terminated by the Company (other
than for cause or by reason of death or disability) or if he terminates his employment for &#147;good reason,&#148; Mr.&nbsp;Cline will be entitled to receive severance benefits: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">For this purpose, &#147;cause&#148; and &#147;good reason&#148; are defined as follows: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">&#147;Cause&#148; includes events specified in the change-in-control severance agreement, including Mr.&nbsp;Cline&#146;s willful or grossly negligent misconduct that is materially injurious to the Company, embezzlement
or misappropriation of funds or property of the Company, conviction of a felony or any crime involving fraud, dishonesty, moral turpitude or breach of trust, or willful failure or refusal to devote full business time and attention to the performance
of duties. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">&#147;Good reason&#148; includes events specified in the change-in-control severance agreement, including a material and adverse change in Mr.&nbsp;Cline&#146;s status or position with the Company, a 10% or greater
reduction in his aggregate base salary and targeted annual incentive other than as part of general reduction in executive compensation, the failure by the Company or any successor to continue in effect any employee benefit plan in which he is
participating other than as a result of normal expiration of such plan in accordance with its terms, or the relocation of his office more than 50 miles from the current office and further than his then-current residence. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Upon such termination, Mr.&nbsp;Cline would receive: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">a lump-sum cash payment equal to the sum of (1)&nbsp;his accrued base salary and accrued vacation pay plus (2)&nbsp;if not previously paid, his annual cash incentive earned for the preceding fiscal year plus
(3)&nbsp;his targeted annual cash incentive for the year in which the severance occurs, pro-rated based upon the number of days he was employed during such year; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">a lump sum severance payment of 2.99 times (1)&nbsp;his annual base salary (in effect immediately prior to the change in control or termination, whichever is greater), plus (2)&nbsp;the greater of (a)&nbsp;his target
annual cash incentive for the year immediately prior to the year in which the change of control occurs, (b)&nbsp;his target annual cash incentive for the year of termination of employment, or (c)&nbsp;his actual annual cash incentive for the last
fiscal year immediately prior to termination of employment; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">continuation of group health and dental insurance, and group life insurance, on the same terms and conditions as though he had remained an active employee, for the longer of 18 months or until coverage is obtained from
a new employer. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, the change in control severance agreement provides that, to the extent
necessary to avoid imposition of the excise tax under Section&nbsp;4999 of the Internal Revenue Code in connection with a change in control, the amounts payable or benefits to be provided to Mr.&nbsp;Cline shall be reduced such that the reduction of
compensation to be provided to Mr.&nbsp;Cline is minimized. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section&nbsp;409A of the Internal Revenue 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). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">If a change of control occurs during the term of the change-in-control severance agreement, all unvested outstanding long-term incentive
awards, including, but not limited to, stock options, stock appreciation rights, restricted shares, and performance shares (at the 100% targeted payment level) (whether or not there is a loss of employment) will become fully vested. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">A change in control is generally defined as (1)&nbsp;the acquisition by any person or entity of
35% of the Company&#146;s outstanding stock, (2)&nbsp;a merger where the stockholders of the Company immediately prior to the merger would not own at least 50% of the outstanding stock of the Company after such merger, (3)&nbsp;a sale of all or
substantially all of the assets of the Company, or (4)&nbsp;during any two-year period, the directors in office at the beginning of such period ceasing to be a majority of the board, unless the nomination of each new director during such period was
approved by at least two-thirds of the directors in office at the beginning of such period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Cline has also entered into a
severance agreement with the Company dated May&nbsp;6, 2015 providing for the payment of severance compensation and benefits to him if the Company terminates his employment without &#147;cause&#148; or if he resigns for &#147;good reason.&#148; For
this purpose, &#147;cause&#148; and &#147;good reason&#148; are defined in the same manner as in the change-in-control severance agreement discussed above. Upon such a termination, Mr.&nbsp;Cline will be entitled to receive the following: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">a lump-sum cash payment equal to the sum of (1)&nbsp;his accrued base salary and accrued vacation pay plus (2)&nbsp;if not previously paid, his annual cash incentive earned for the preceding fiscal year;
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">a lump-sum cash payment equal to 2 times the sum of (1)&nbsp;his base salary then in effect, plus (2)&nbsp;an amount equal to the greater of (a)&nbsp;his targeted annual cash incentive for the year immediately prior to
the year in which his employment terminates, or (b)&nbsp;his actual annual cash incentive earned for the preceding year; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">continued health and dental plan benefits on the same terms and conditions as though he had remained an active employee (or payment of the necessary amount to obtain equivalent coverage if Company coverage is not
possible), for the shorter of 12 months or until equivalent coverage is obtained from a new employer; and </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">accelerated vesting of all outstanding long-term incentive awards, including stock options, stock appreciation rights, restricted shares and performance shares (at the targeted payment level), with any stock options or
stock appreciation rights being exercisable for a period ending on the earlier of 90 days after termination of employment or the expiration of the term of such grant. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">If Mr.&nbsp;Cline&#146;s employment is terminated during a change-in-control protection period (which begins 90 days before a
change-in-control occurs and ends 2 years thereafter) under his change-in-control severance agreement, described above, he will be entitled to receive the severance payments specified under that agreement instead of the foregoing payments under his
severance agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Cline is not entitled to any additional severance payments or benefits under his severance agreement if his
employment is terminated by the Company for cause, by him without good reason, or if it terminates due to his death or disability. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The
term of the severance agreement ends on Mr.&nbsp;Cline&#146;s 68<SUP STYLE="font-size:85%; vertical-align:top">th</SUP> birthday. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Cline&#146;s change-in-control severance agreement and severance agreement replace in their entireties Mr.&nbsp;Cline&#146;s
change-in-control severance agreement dated August&nbsp;3, 2011 and Mr.&nbsp;Cline&#146;s severance agreement dated August&nbsp;3, 2013. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The foregoing description of Mr.&nbsp;Cline&#146;s change-in-control severance agreement and severance agreement with the Company is qualified
in its entirety by reference to the agreements, copies of which are filed as Exhibits 10.1 and 10.2 to this report and incorporated herein by reference. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Appointment of Bryan H. Fairbanks as Vice President and Chief Financial Officer </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Effective August&nbsp;17, 2015, Bryan H. Fairbanks, the Company&#146;s Senior Director-Supply Chain and Executive Director, International
Business Development, will become the Company&#146;s Vice President and Chief Financial Officer. Bryan H. Fairbanks has served as Senior Director, Supply Chain from 2006 through present, and as the Executive Director, International Business
Development, Trex Company, Inc. since September 2012.&nbsp;Prior to these </P>

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roles, Mr.&nbsp;Fairbanks held the position of Director, Financial Planning and Analysis from 2004-2006.&nbsp;From 1994-2004, Mr.&nbsp;Fairbanks served in numerous senior finance roles with the
Ford Motor Company.&nbsp;Mr.&nbsp;Fairbanks earned a B.S. Degree in accounting from the University of Dayton and a M.B.A. degree from the University of Pittsburgh. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Fairbanks will receive an annual base salary of $290,000, and will be a participant in the Company&#146;s Annual Cash Incentive
Compensation Program and Long-Term Equity Incentive Compensation Program, as further described in the Company&#146;s Proxy Statement. Mr.&nbsp;Fairbanks&#146; target award under the Annual Cash Incentive Compensation Program shall be 60% of his
annual base salary, and his target award under the Long-Term Equity Incentive Compensation Program shall be 115% of his annual base salary. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Fairbanks has entered into a change-in-control severance agreement with the Company dated May&nbsp;6, 2015. The terms of this
agreement are materially the same as those contained in the amended and restated form change-in-control severance agreement previously filed as Exhibit 10.3 to the Company&#146;s Current Report on Form 8-K filed on August&nbsp;9, 2011for use for
certain executives and are materially identical to the terms set forth above for Mr.&nbsp;Cline&#146;s change-in-control agreement, except that upon a change of control, Mr.&nbsp;Fairbanks shall receive a lump sum severance payment of 1.5 times
(instead of 2.99 times for Mr.&nbsp;Cline) (1)&nbsp;his annual base salary (in effect immediately prior to the change in control or termination, whichever is greater), plus (2)&nbsp;the greater of (a)&nbsp;his target annual cash incentive for the
year immediately prior to the year in which the change of control occurs, (b)&nbsp;his target annual cash incentive for the year of termination of employment, or (c)&nbsp;his actual annual cash incentive for the last fiscal year immediately prior to
termination of employment, </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Fairbanks has also entered into a severance agreement with the Company dated May&nbsp;6, 2015. The
terms of this agreement are materially the same as those contained in the severance agreement previously filed as Exhibit 10.1 to the Company&#146;s Quarterly Report on Form 10-Q for the quarterly period ended June&nbsp;30, 2013 for use for certain
executives and are materially identical to the terms set forth above for Mr.&nbsp;Cline&#146;s severance agreement, except that if the Company terminates his employment without &#147;cause&#148; or if he resigns for &#147;good reason,&#148;
Mr.&nbsp;Fairbanks shall receive a lump-sum cash payment equal to 1 time (instead of 2 times for Mr.&nbsp;Cline) the sum of (1)&nbsp;his base salary then in effect, plus (2)&nbsp;an amount equal to the greater of (a)&nbsp;his targeted annual cash
incentive for the year immediately prior to the year in which his employment terminates, or (b)&nbsp;his actual annual cash incentive earned for the preceding year. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Retirement of F. Timothy Reese as Senior Vice President, Operations </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">F. Timothy Reese, the Company&#146;s Senior Vice President, Operations, has announced that he is retiring effective June&nbsp;30, 2015. No
payments are due or owing to Mr.&nbsp;Reese under his retention agreement, severance or change-in-control severance agreement as a result of his retirement. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01 Financial Statements and Exhibits. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d) Trex Company, Inc. herewith files the following exhibits: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="92%"></TD></TR>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1.00pt solid #000000; width:28.45pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Number</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:75.45pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Description of Exhibit</B></P></TD></TR>


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<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Change-in-Control Severance Agreement, dated as of May&nbsp;6, 2015, between Trex Company, Inc. and James E. Cline. Filed Herewith.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>10.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Severance Agreement, dated as of May&nbsp;6, 2015, between Trex Company, Inc. and James E. Cline. Filed Herewith.</TD></TR>
</TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURE </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">TREX COMPANY, INC.</TD></TR>
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<TD VALIGN="top">Date: May&nbsp;8, 2015</TD>
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<TD VALIGN="bottom"></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ William R. Gupp</P></TD></TR>
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<TD VALIGN="top">William R. Gupp</TD></TR>
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<TD VALIGN="top">Senior Vice President, General Counsel &amp; Secretary</TD></TR>
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<TYPE>EX-10.1
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<FILENAME>d920750dex101.htm
<DESCRIPTION>EX-10.1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CHANGE IN CONTROL SEVERANCE AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the &#147;Agreement&#148;) is entered into as of May&nbsp;6, 2015 (the &#147;Effective Date&#148;)
by and between Trex Company, Inc., a Delaware corporation (the &#147;Company&#148;), and James E. Cline, a key employee of the Company (the &#147;Eligible Employee&#148;). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Recitals </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, the
Eligible Employee has been appointed the President and Chief Executive Officer of the Company effective August&nbsp;17, 2015, and will be important in developing and expanding the business and operations of the Company and will possess valuable
knowledge and skills with respect to such business; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Compensation Committee of the Board of Directors of the Company (the
&#147;<U>Committee</U>&#148;) believes that it is in the best interests of the Company to encourage the Eligible Employee&#146;s employment with and dedication to the Company and has authorized the Company to enter into this Agreement; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">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&#146;s employment in connection with a Change in Control (as defined herein) during the term of this Agreement; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">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: </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Agreement </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. <U>Definitions</U>. Except as otherwise provided in this Agreement, capitalized terms in this Agreement shall have the meanings set forth
in this Section&nbsp;1. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(a) &#147;<U>Administrator</U>&#148; means the Committee or such other person or persons appointed from time to
time by the Committee. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(b) &#147;<U>Affiliate</U>&#148; means any &#147;parent corporation&#148; and any &#147;subsidiary
corporation&#148; of the Company, as such terms are defined in Section&nbsp;424 of the Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(c) &#147;<U>Board</U>&#148; means the
Board of Directors of the Company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(d) &#147;<U>Cause</U>&#148; means one of the following reasons for which the Eligible
Employee&#146;s employment with the Employer is terminated: (1)&nbsp;willful or grossly negligent misconduct that is materially injurious to the Employer; (2)&nbsp;embezzlement or misappropriation of funds or property of the Employer;
(3)&nbsp;conviction of a felony or the entrance of a plea of guilty or nolo contendere to a felony; (4)&nbsp;conviction of any crime </P>

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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)&nbsp;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(e) &#147;<U>Change in Control</U>&#148; means the first of the following events to occur after the Effective Date: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman">(1) The consummation of a transaction in which any &#147;person&#148; (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&#146;s most recent acquisition, a &#147;beneficial owner&#148; (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); </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman">(2) The consummation of (a)&nbsp;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)&nbsp;a sale or other disposition of all or substantially all of the assets of the Company; or </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman">(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&#146;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(f) &#147;<U>Change in Control Severance Benefits</U>&#148; means the benefits payable pursuant to Section&nbsp;3 of this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(g) &#147;<U>Change in Control Protection Period</U>&#148; means the period commencing on the later of (1)&nbsp;the date that is 90 days
before the date a Change in Control occurs or (2)&nbsp;the Effective Date, and ending on the second anniversary of the date the Change in Control occurs. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(h) &#147;<U>Code</U>&#148; means the Internal Revenue Code of 1986, as amended. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(i) &#147;<U>Disability</U>&#148; 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(j) &#147;<U>Employer</U>&#148; means the Company or an Affiliate. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(k) &#147;<U>ERISA</U>&#148; means the Employee Retirement Income Security Act of 1974, as amended. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(l) &#147;<U>Final Pay</U>&#148; means the sum of (1)&nbsp;the greater of (A)&nbsp;the Eligible Employee&#146;s annual base salary in effect
immediately prior to the Change in Control, or (B)&nbsp;the Eligible Employee&#146;s annual base salary in effect at the time employment terminates, and (2)&nbsp;the greater of (A)&nbsp;the Eligible Employee&#146;s targeted cash bonus for the year
immediately prior to the year in which the Change in Control occurs, (B)&nbsp;the Eligible Employee&#146;s targeted cash bonus for the year in which employment terminates or (C)&nbsp;the actual cash bonus earned by the Eligible Employee for the year
immediately prior to the year in which employment terminates. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(m) &#147;<U>Good Reason</U>&#148; means, without the specific written
consent of the Eligible Employee, any of the following: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman">(1) A material and adverse change in the Eligible Employee&#146;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&#146;s Severance other than for Good Reason).
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman">(2) A 10% or greater reduction in the Eligible Employee&#146;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 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman">(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 </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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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&#146;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:17%; font-size:10pt; font-family:Times New Roman">(4) The Employer&#146;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&#146;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(n) &#147;<U>Incentive Plan</U>&#148; means the Trex
Company, Inc. 2014 Stock Incentive Plan (or a successor plan). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(o) &#147;<U>Severance</U>&#148; means (1)&nbsp;the involuntary
termination of the Eligible Employee&#146;s employment by the Employer, other than for Cause, death or Disability or (2)&nbsp;a termination of the Eligible Employee&#146;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 &#147;separation from service&#148; within the meaning of Section&nbsp;409A(a)(2)(A)(i) of the Code and Treasury Regulations thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(p) &#147;<U>Severance Date</U>&#148; means the date on which the Eligible Employee incurs a Severance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2. <U>Term of Agreement</U>. This Agreement shall remain in effect from the Effective Date through December&nbsp;31, 2015; provided, however,
that (a)&nbsp;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)&nbsp;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3. <U>Change in Control Severance Benefits</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(a) <U>Generally</U>.&nbsp;Subject to subsections (h)&nbsp;and (i)&nbsp;below and Section&nbsp;4, the Eligible Employee shall be entitled to
the Change in Control Severance Benefits provided in this Section&nbsp;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&nbsp;3, such compensation or benefits will be reduced by other severance benefits payable under any plan, program, policy or </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(b) <U>Payment of
Accrued Obligations</U>.&nbsp;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)&nbsp;the Eligible Employee&#146;s accrued annual base salary and any accrued vacation pay through the Severance Date, (2)&nbsp;the Eligible Employee&#146;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)&nbsp;the Eligible Employee&#146;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(c) <U>Payment of Severance</U>.&nbsp;Subject to
subsections (h)&nbsp;and (i)&nbsp;below and Section&nbsp;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)&nbsp;times the Eligible Employee&#146;s Final Pay. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(d) <B>[Intentionally Omitted].</B> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(e) <B>[Intentionally Omitted].</B> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(f) <U>Benefit Continuation</U>.&nbsp;Subject to subsections (h)&nbsp;and (i)&nbsp;below and Section&nbsp;4, if the Eligible Employee incurs
a Severance during the Change in Control Protection Period, commencing on the date immediately following such Eligible Employee&#146;s Severance Date and continuing for 24 months (or such lesser time as required to avoid the imposition of additional
taxes under Section&nbsp;409A of the Code) (the &#147;Welfare Benefit Continuation Period&#148;), the Company shall cover the Eligible Employee under the same type of Employer-sponsored group health plan and dental plan (<I>e.g.</I>, 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 (<I>e.g.</I>, 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">For each month during the Welfare Benefit Continuation Period in which the Eligible Employee&#146;s continued coverage under an insured plan
is not possible, the Company shall, in lieu of providing the coverage described in the preceding paragraph, </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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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 &#147;gross up&#148; or otherwise compensate the Eligible Employee for any taxes due on amounts paid pursuant to the preceding sentence. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">Notwithstanding any other provision of this subsection (f), the Company&#146;s obligation to provide continued coverage (or, in lieu thereof,
make a cash payment) pursuant to this subsection (f)&nbsp;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&nbsp;4980B of the
Code shall commence at the expiration of the Welfare Benefit Continuation Period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(g) <U>Outplacement Services</U>.&nbsp;Subject to
subsection (i)&nbsp;below and Section&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(h) <U>Release</U>.&nbsp;The Eligible Employee shall not be eligible to receive any Change in Control Severance Benefits provided
in this Section&nbsp;3 (other than payments under Section&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(i) <U>Restriction on Timing of Distribution</U>. Anything in this Agreement to the contrary notwithstanding, if (1)&nbsp;on
the Eligible Employee&#146;s Severance Date, any of the Company&#146;s stock is publicly traded on an established securities market or otherwise (within the meaning of Section&nbsp;409A(a)(2)(B)(i) of the Code) and (2)&nbsp;as a result of such
termination, the Eligible Employee would receive any payment that, absent the application of this Section&nbsp;3(i), would be subject to interest and additional tax imposed pursuant to Section&nbsp;409A(a) of the Code as a result of the application
of Section&nbsp;409A(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (x)&nbsp;six months after the Eligible Employee&#146;s Severance Date, (y)&nbsp;the Eligible Employee&#146;s death or
(z)&nbsp;such other date as will cause such payment not to be subject to such interest and additional tax. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4. <U>Reduction of Change in
Control Severance Benefits</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(a) <U>Reduction of Payments</U>. To the extent necessary to avoid imposition of the excise tax under
Section&nbsp;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&nbsp;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). </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(b) <U>Determination</U>. The determination that the Eligible Employee&#146;s Payment would
cause him to become subject to the excise tax imposed under Section&nbsp;4999 of the Code and the calculation of the amount of any reduction, shall be made, at the Company&#146;s discretion, by the Company&#146;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&#146;s expenses shall be paid by the Company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(c) <U>Payment of Remaining Benefits</U>. If a determination is made that the Eligible Employee&#146;s Change in Control Severance Benefits
provided in Section&nbsp;3(c) must be reduced, payment of the remaining&nbsp;Change in Control Severance Benefits provided in Section&nbsp;3(c) shall be made&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5. <U>Taxes; Withholding</U>. The Eligible Employee shall be responsible for the payment of
all applicable local, state and federal taxes associated with the Eligible Employee&#146;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6. <U>Claims Procedures</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(a) <U>Applications for Benefits and Inquiries</U>.&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(b) <U>Denial of Claims</U>. 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&#146;s right to review the denial.&nbsp;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&#146;s right to bring a
civil action under Section&nbsp;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(c) <U>Request for a Review</U>.&nbsp;Any person (or that person&#146;s authorized representative) for whom an application for benefits is
denied, in whole or in part, may </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


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appeal the denial by submitting a written request for a review to the Administrator within 60 days after the application is denied.&nbsp;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(d) <U>Decision on Review</U>.&nbsp;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).&nbsp;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 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&#146;s claim for benefits, and a statement of the
applicant&#146;s right to bring an action under Section&nbsp;502(a) of ERISA.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(e) <U>Rules and Procedures</U>.&nbsp;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7. <U>Immediate Vesting of Equity-Based Compensation Awards upon a Change in Control</U>. If a Change in Control occurs during the term of
this Agreement, (1)&nbsp;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)&nbsp;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)&nbsp;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&#146;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)&nbsp;of Section&nbsp;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&#146;s employment with the Company, such award shall not be deemed to be forfeited on account of the Eligible Employee&#146;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. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8. <U>General Provisions</U> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(a) <U>Amendment and Termination</U>. This Agreement may not be terminated prior to the end of its term without the written consent of the
Eligible Employee.&nbsp;This Agreement may be&nbsp;amended&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(b) <U>Assignment</U>. 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 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(c) <U>Compliance with Law</U>.
Notwithstanding subsection (a)&nbsp;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&nbsp;409A of the Code and any Treasury Regulations or other guidance thereunder.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(d) <U>Governing Law</U>. 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(e) <U>Severability</U>. 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(f) <U>Headings and Terms</U>. 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(g) <U>No Assurance of Employment</U>. 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. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(h) <U>Successors</U>. 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.&nbsp;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&#146;s estate in a lump sum payment no later than the
fifteenth day of the third calendar month following the Eligible Employee&#146;s death. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(i) <U>Notice</U>. 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&#146;s address as shown on the Company&#146;s records, and, in the case of the
Company or the Administrator, to the Company&#146;s principal office, to the attention of the General Counsel 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(j) <U>Entire Agreement</U>. 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed as of the day first above written. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3">TREX COMPANY, INC.</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Ronald W. Kaplan</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="top">Ronald W. Kaplan</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="top">Chairman, President and Chief Executive Officer</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
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<TD VALIGN="top" COLSPAN="3">ELIGIBLE EMPLOYEE</TD></TR>
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<TD HEIGHT="16" COLSPAN="3"></TD></TR>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ James E. Cline</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="top">James E. Cline</TD></TR>
</TABLE>
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<FILENAME>d920750dex102.htm
<DESCRIPTION>EX-10.2
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SEVERANCE AGREEMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This Severance
Agreement is entered into as of May&nbsp;6, 2015, by and between Trex Company, Inc., a Delaware corporation (the &#147;Company&#148;) and James E. Cline, an individual (&#147;Executive&#148;). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Recitals </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Executive is an
executive officer of the Company. The Company and Executive desire to set forth their agreement pursuant to which Executive will receive certain benefits upon severance from the Company under certain circumstances. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Agreement </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Now, therefore</B>, in
consideration of the mutual covenants contained herein, the parties hereby agree as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. <U>Term</U>. The term of this Agreement
(the &#147;Term&#148;) shall begin on the date first set forth above and shall end on the Eligible Employee&#146;s 68<SUP STYLE="font-size:85%; vertical-align:top">th</SUP> birthday. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2. <U>Termination of Employment.</U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) <U>Termination by the Company for Cause or at the Election of Executive Without Good Reason</U>.&nbsp;In the event Executive&#146;s
employment is terminated for Cause, as defined in Section&nbsp;3(a), or at the election of Executive for any reason other than Good Reason, as defined in Section&nbsp;3(b), the Company shall pay to Executive the compensation and benefits otherwise
due and payable to him in a lump sum payment in cash, payable within 10 days after termination of employment, equal to the sum of (1)&nbsp;Executive&#146;s then annual base salary (&#147;Base Salary&#148;) and any accrued vacation pay through the
date of termination of employment, and (2)&nbsp;Executive&#146;s annual bonus earned for the fiscal year immediately preceding the fiscal year in which the date of termination of employment occurs if such bonus has not been paid as of the date of
termination of employment. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) <U>Termination for Death or Disability</U>.&nbsp;If Executive&#146;s employment is terminated by death or
because of Disability, as defined in Section&nbsp;3(c), the Company shall pay to the estate of Executive or to Executive, as the case may be, a lump sum payment in cash, payable within 10 days after termination of employment, equal to the sum of
(1)&nbsp;Executive&#146;s accrued Base Salary and any accrued vacation pay through the date of termination of employment, and (2)&nbsp;Executive&#146;s annual bonus earned for the fiscal year immediately preceding the fiscal year in which the date
of termination of employment occurs if such bonus has not been paid as of the date of termination of employment. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c) <U>Termination by the Company Without Cause or By Executive for Good Reason</U>. If
Executive&#146;s employment is terminated by the Company without Cause, or is terminated by Executive for Good Reason, at any time during the Term (including extensions thereof), except during the Change in Control Protection Period (as defined in
Executive&#146;s Change In Control Severance Agreement) (&#147;Change in Control Severance Agreement&#148;), Executive will be entitled to the following payments and benefits outlined in this Section 2(c): </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(1) <U>Payment of Accrued Obligations</U>.&nbsp;The Company shall pay to Executive a lump sum payment in cash, no later than 10 days after
the date of termination of employment, equal to the sum of (1)&nbsp;Executive&#146;s accrued Base Salary and any accrued vacation pay through the date of termination of employment, and (2)&nbsp;Executive&#146;s annual bonus earned for the fiscal
year immediately preceding the fiscal year in which the date of termination of employment occurs if such bonus has not been paid as of the date of termination of employment. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(2) <U>Payment of Severance</U>.&nbsp;The Company shall pay to Executive a lump sum cash payment, no later than 10 days after such
termination, equal to two (2)&nbsp;times Executive&#146;s Final Pay as defined in Section&nbsp;3(d). In the event Executive materially breaches any non-compete or confidentiality agreement then in effect with the Company, Executive agrees to return
to the Company all amounts received under this Section&nbsp;2(c)(2). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(3) <U>Equity</U>. Outstanding equity shall vest as follows:
(1)&nbsp;The unexercised portions of all Options and SARs (as defined in the Trex Company, Inc. 2014 Stock Incentive Plan or a successor plan (&#147;Incentive Plan&#148;) granted to Executive under the Incentive Plan that have not expired or been
forfeited pursuant to their terms shall automatically accelerate and become fully exercisable, (2)&nbsp;the restrictions and conditions on all outstanding Restricted Stock and Restricted Stock Units (as defined in the Incentive Plan) granted to the
Executive 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)&nbsp;all outstanding Restricted Stock Units and Restricted Stock (as defined
in the Incentive Plan) granted to the Executive that are based upon performance of the Company over a certain period of time shall become payable at the Executive&#146;s target payment for the relevant performance period (regardless of the amount of
the relevant performance period that precedes the termination of employment. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(4) <U>Benefit Continuation</U>.&nbsp;Commencing on the
date immediately following Executive&#146;s date of termination of employment and continuing for 24 months (or such lesser time as required to avoid the imposition of additional taxes under </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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Section&nbsp;409A of the Internal Revenue Code of 1986, as amended (the &#147;<U>Code</U>&#148;)) (the &#147;<U>Welfare Benefit Continuation Period</U>&#148;), the Company shall cover Executive
under the same type of Company-sponsored group health plan and dental plan (e.g., individual or family coverage) in which he was covered immediately prior to termination of employment. The Executive 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 Executive had continued to be an employee of the Company during the Welfare Benefit Continuation Period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(5) For each month during the Welfare Benefit Continuation Period in which Executive&#146;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 Executive equal to the monthly premium the Company would be charged for coverage of a similarly-situated employee.
The Company shall not be obligated to &#147;gross up&#148; or otherwise compensate Executive for any taxes due on amounts paid pursuant to the preceding sentence. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(6) Notwithstanding any other provision of this Section&nbsp;2(c), the Company&#146;s obligation to provide continued coverage (or, in lieu
thereof, make a cash payment) pursuant to this Section&nbsp;2(c) shall expire on the date Executive 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, as defined in Section&nbsp;3(e), are determined to provide coverage at least equivalent in the aggregate to the benefits continued under Section&nbsp;2(c)(4). The coverage period for purposes of the group health continuation
requirements of Section&nbsp;4980B of the Code shall commence at the expiration of the Welfare Benefit Continuation Period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(7)
<U>Release</U>.&nbsp;The Executive shall not be eligible to receive any payments or benefits provided in Section&nbsp;2(c) (other than payments under Section&nbsp;2(c)(1)) 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(8) <U>Restriction on
Timing of Distribution</U>. Anything in this Agreement to the contrary notwithstanding, if (1)&nbsp;on Executive&#146;s date of termination of employment, any of the Company&#146;s stock is publicly traded on an established securities market or
otherwise (within the meaning of Section&nbsp;409A(a)(2)(B)(i) of the Code) and (2)&nbsp;as a result of such termination, Executive would receive any payment that, absent the application of this Section&nbsp;2(c)(8), would be subject to interest and
additional tax imposed pursuant to Section&nbsp;409A(a) of the Code as a result of the application of Section&nbsp;409A(a)(1)(B) of the Code, then no such payment shall be payable prior to the date that is the earliest of (x)&nbsp;six months after
Executive&#146;s date of termination of employment, (y)&nbsp;Executive&#146;s death or (z)&nbsp;such other date as will cause such payment not to be subject to such interest and additional tax. For the avoidance of doubt, upon
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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the Executive&#146;s involuntary separation from service (as defined in Treas. Regs. &#167;1.409A-1(n)), the preceding sentence shall not prevent payment to the Executive during such six-month
period of an aggregate amount not exceeding the lesser of (a)&nbsp;two (2)&nbsp;times the sum of the Executive&#146;s annualized compensation based upon the annual rate of pay for his taxable year preceding the taxable year of the separation from
service, or (b)&nbsp;two (2)&nbsp;times the maximum amount that may be taken into account under a qualified plan pursuant to Section&nbsp;401(a)(17) of the Code for the year in which the Executive has a separation from service, as permitted pursuant
to Treas. Regs. &#167;1.409A-1(b)(9)(iii). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d) <U>Termination During a Change in Control Protection Period</U>. If Executive&#146;s
employment is terminated during a Change in Control Protection Period (as that term is defined in Executive&#146;s Change in Control Severance Agreement), Executive shall be entitled to receive such severance payments and benefits as are set forth
in Executive&#146;s Change in Control Severance Agreement, and shall not be entitled to any benefits under this Section&nbsp;2. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.
<U>Definitions.</U> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) &#147;<U>Cause</U>&#148; means one of the following reasons for which the Executive&#146;s employment with the
Company is terminated: (1)&nbsp;Executive&#146;s willful or grossly negligent misconduct that is materially injurious to the Company; (2)&nbsp;Executive&#146;s embezzlement or misappropriation of funds or property of the Company;
(3)&nbsp;Executive&#146;s conviction of a felony or the entrance of a plea of guilty or nolo contendere to a felony; (4)&nbsp;Executive&#146;s conviction of any crime involving fraud, dishonesty, moral turpitude or breach of trust or the entrance of
a plea of guilty or nolo contendere to such a crime; or (5)&nbsp;Executive&#146;s willful failure or refusal by Executive to devote his full business time (other than on account of disability or approved leave) and attention to the performance of
his duties and responsibilities if such breach has not been cured within 15 days after written notice thereof is given to the Executive by the Board. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) For the purposes of this Agreement, &#147;<U>Good Reason</U>&#148; shall exist upon: (1)&nbsp;a material and adverse change in
Executive&#146;s status or position(s) as an officer or management employee of the Company, including, without limitation, any adverse change in his status or position as an employee of the Company as a result of a material diminution in his duties
or responsibilities (other than, if applicable, any such change directly attributable to the fact that the Company is no longer publicly owned) or the assignment to him of any duties or responsibilities which are materially inconsistent with such
status or position(s) (other than any isolated and inadvertent failure by the Company that is cured promptly upon his giving notice), or any removal of Executive from or any failure to reappoint or reelect him to such position(s) (except in
connection with Executive&#146;s termination other than for Good Reason); (2)&nbsp;a 10% or greater reduction in Executive&#146;s aggregate Base Salary and targeted bonus, other than any such reduction proportionately consistent with a general
reduction of pay across the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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executive staff as a group, as an economic or strategic measure due to poor financial performance by the Company; (3)&nbsp;Company&#146;s requiring Executive to be based at an office that is both
more than 50 miles from where his office is located and further from his then current residence; or (4)&nbsp;a material breach by the Company of this Agreement; provided, however, that if any of the conditions in this Section&nbsp;3(b) exists,
Executive must provide notice to the Company no more than ninety (90)&nbsp;calendar days following the initial existence of the condition and his intention to terminate his employment for Good Reason. Upon such notice, the Company shall have a
period of thirty (30)&nbsp;calendar days during which it may remedy the condition. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c) For the purposes of this Agreement, the term
&#147;<U>Disability</U>&#148; shall have the meaning given that term under the Trex Company, Inc. disability plan carrier, as in effect at the time a determination of Disability is to be made. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d) For the purposes of this Agreement, the term &#147;<U>Final Pay</U>&#148; shall be defined as the sum of (1)&nbsp;Executive&#146;s Base
Salary in effect at the time employment terminates (without taking into consideration a reduction in Base Salary which constitutes &#147;<U>Good Reason</U>&#148; as provided in Section&nbsp;3(b)(2) above), and (2)&nbsp;the greater of
(A)&nbsp;Executive&#146;s targeted cash bonus for the year immediately prior to the year in which employment terminates or (B)&nbsp;the actual cash bonus earned by the Executive for the year immediately prior to the year in which employment
terminates. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e) For the purposes of this Agreement, the term &#147;<U>Administrator</U>&#148; means the Compensation Committee of the
Board of Directors or such other person or persons appointed from time to time by the Committee. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4. <U>Notices</U>.&nbsp;For purposes of
this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when hand delivered, sent by overnight courier, or mailed by first-class, registered or certified
mail, return receipt requested, postage prepaid, or transmitted by telegram, telecopy, or telex, addressed, in the case of Executive, to Executive&#146;s address as shown on the Company&#146;s records and, in the case of the Company, to the
Company&#146;s principal office, to the attention of the General Counsel, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only
upon receipt. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5. <U>Entire Agreement</U>.&nbsp;This Agreement, together with the Executive&#146;s Change In Control Severance Agreement,
any stock appreciation rights agreement, restricted stock agreement and/or any other equity agreement issued pursuant to the Trex Company, Inc. 2014 Stock Incentive Plan (or a predecessor or successor plan), any Director/Officer Indemnification
Agreement and any restrictive covenant agreement, constitute the entire agreement between the parties and supersede all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6. <U>Amendment</U>.&nbsp;This Agreement may be amended or modified only by a written instrument
executed by both the Company and Executive. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7. <U>Governing Law</U>.&nbsp;This Agreement shall be construed, interpreted and enforced as
a sealed instrument under and in accordance with the laws of the Commonwealth of Virginia, without reference to the conflicts of laws provisions thereof.&nbsp;Any action, suit or other legal proceeding which is commenced to resolve any matter
arising under or relating to any provision of this Agreement shall be commenced only in a court of the Commonwealth of Virginia (or, if appropriate, a federal court located within Virginia), and the Company and Executive each consents to the
jurisdiction of such a court. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8. <U>Successors and Assigns</U>.&nbsp;This Agreement shall be binding upon and inure to the benefit of
both parties and their respective successors and assigns, including any corporation with which or into which the Company may be merged or which may succeed to its assets or business, provided, however, that the obligations of Executive are personal
and shall not be assigned by him. Notwithstanding the foregoing, in the event of Executive&#146;s death, any payments that Executive was otherwise entitled to under this Agreement shall be made to his estate. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">9. <U>Acknowledgment</U>.&nbsp;Executive states and represents that he has had an opportunity to fully discuss and review the terms of this
Agreement with an attorney. The Executive further states and represents that he has carefully read this Agreement, understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof, and signs his name of his
own free act. The Company represents that it has obtained all necessary consents and approvals to execute this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.
<U>Miscellaneous</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of
that or any other right.&nbsp;A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or
substance of any section of this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c) Termination of employment under this Agreement shall mean a separation from service under
Section&nbsp;409A of the Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d) In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the
validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth above. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top">Trex Company, Inc.</TD></TR>
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<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Ronald W. Kaplan</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Ronald W. Kaplan</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Chairman, President and Chief Executive Officer</TD></TR>
</TABLE></DIV> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3">Executive:</TD></TR>
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<TD HEIGHT="16" COLSPAN="3"></TD></TR>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ James E. Cline</P></TD></TR>
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<TD VALIGN="top">Name:</TD>
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<TD VALIGN="top">James E. Cline</TD></TR>
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 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>

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