Company: RGNX
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0000950170-25-052069
Chunk: 85

Company: REGENXBIO Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 85
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, stock bonuses, or cash awards are settled in the amount equal to the cash the participant receives or, if applicable, the fair market value of the shares the participant receives.

SARs and Performance-Based Awards

A participant will generally recognize ordinary income upon exercise of a SAR in an amount equal to the excess of the fair market value of the underlying shares of common stock on the exercise date over the exercise price.

Capital Gain

Special tax rates apply if a participant has a net capital gain in a taxable year. A participant’s “net capital gain” is the excess of the participant’s net gain on capital assets held for more than one year over the participant’s net loss, if any, on capital assets held for one year or less. The preceding subsections of this section of the proxy statement explain how the one-year holding period is measured.

The rate of tax on any capital gain the participant realizes when the participant disposes of common stock is determined as follows:

Short-Term Gain. The net gain on shares held for one year or less is taxed at the participant’s regular income tax rate.

Long-Term Gain. The net gain on shares held for more than one year is taxed at a maximum rate of 20%. Lower rates apply if the participant’s ordinary income tax rates are below the maximum capital gain rate.

Alternative Minimum Tax

Generally, awards other than ISOs are treated for alternative minimum tax purposes like other taxable income. However, alternative minimum taxable income in the year of exercise of an ISO includes the excess of the fair market value of the shares on the date of exercise over the option exercise price. The alternative minimum tax is imposed at a maximum rate of 28% and is applied to the participant’s alternative minimum taxable income.

If a participant receives restricted shares when the participant exercises an ISO, the participant will recognize income for alternative minimum tax purposes (but not for regular income tax purposes) if the participant makes a section 83(b) election within 30 days after the participant exercises the ISO and receives the restricted shares. If the participant does not make a section 83(b) election, the participant will recognize income for alternative minimum tax purposes (but not for regular income tax purposes) when the restricted shares vest.

If the participant sells the shares in a later year, the participant’s basis in such shares is increased for alternative minimum tax purposes (but not for regular income tax purposes) to reflect the amount that was previously included in the participant’s alternative minimum taxable income, and any gain on the sale is subject to the alternative minimum