Company: RGNX
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0000950170-25-052069
Chunk: 83

Company: REGENXBIO Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 83
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 not count in determining when these periods have been satisfied. If the participant makes a “disqualifying disposition” of some (but not all) of the acquired shares, the participant will be considered to have disposed of the shares with the lowest tax basis.

If the participant surrenders shares previously acquired through the exercise of an ISO in order to satisfy the exercise price of a second ISO, the surrender is a “disqualifying disposition” if the original shares had not satisfied the one-year and two-year holding period requirements at the time of the surrender. If the participant surrenders shares previously acquired through the exercise of an ISO in order to satisfy the exercise price of a nonqualified option, the surrender is not treated as a disposition for purposes of the one-year and two-year holding period requirements. However, shares the participant acquires in such a transaction equal to the number of shares of ISO stock the participant surrendered will continue to be treated as shares acquired through the exercise of an ISO, and will remain subject to the one-year and two-year holding period requirements.

Restricted Shares

Grant and Vesting. In general, a participant will not recognize income when a participant receives restricted shares. Instead, a participant generally will recognize ordinary income in the year in which the participant’s restricted shares “vest”—that is, they either become transferable or cease to be subject to a substantial risk of forfeiture (whichever occurs first). The participant will be taxed when the shares vest even if they are subject to resale restrictions (for example, restrictions under the Company’s insider trading policy or under the SEC’s rules governing sales by affiliates).

Section 83(b) Election. Within 30 days after a participant is awarded restricted shares, the participant may elect to treat the award of the shares, rather than the vesting of the shares, as the taxable event. This election is called a “section 83(b) election.” The participant must file one copy of the election with the Internal Revenue Service and submit one to the Company (and must retain a copy for the participant’s own records). If the participant later forfeits the restricted shares, the participant will not be able to deduct the amount the participant previously recognized as income (although the participant might be able to claim a capital loss equal to any amount the participant actually paid for the shares).

Ordinary Income. Regardless of whether the participant elects to treat the grant or the vesting of restricted shares as the taxable event, the participant generally will recognize income equal to the difference between the fair market value of the restricted shares (