TREX CO INC
DESCRIPTION OF ANNUAL BONUS PLAN
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<TYPE>EX-10.5
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<FILENAME>dex105.txt
<DESCRIPTION>DESCRIPTION OF ANNUAL BONUS PLAN
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                                                                    Exhibit 10.5

                               TREX COMPANY, INC.

                        DESCRIPTION OF ANNUAL BONUS PLAN

        Trex Company, Inc. (the "Company") maintains an annual discretionary
incentive bonus plan for the benefit of its executive officers, other officers,
managers and certain other key employees of the Company. Potential bonuses are
specified as a percentage of the employees' annual base salary or salary range
midpoint, depending on grade level. Such percentage levels are approved by the
Compensation Committee of the Board of Directors annually. Bonuses are paid in
the form of cash awards and stock options (valued based upon the Black-Scholes
valuation model). At the beginning of each fiscal year, the Compensation
Committee sets the financial objectives that the Company must achieve for
individuals to qualify for bonus payments.

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