{"url_path":"/sec/hovr/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 Executive Compensation.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-07-16","source_url":"https://www.sec.gov/Archives/edgar/data/1930021/0001213900-26-078490-index.html","accession_number":"0001213900-26-078490","cik":"0001930021","ticker":"HOVR","issuer_name":"New Horizon Aircraft Ltd.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1930021/0001213900-26-078490-index.html","primary_entity_key":"0001930021","primary_entity_name":"New Horizon Aircraft Ltd."},"word_count":6106,"has_tables":true,"body_markdown":"Item 11. Executive Compensation.\n\n \n\nExecutive Compensation\n\n \n\nWe are currently considered\nan “emerging growth Company” within the meaning of the Securities Act for purposes of the SEC’s executive compensation\ndisclosure rules. Accordingly, we are required to provide a Summary Compensation Table, as well as limited narrative disclosures regarding\nexecutive compensation for our last two completed fiscal years and an Outstanding Equity Awards at Fiscal Year End Table for our last\ncompleted fiscal year. These reporting obligations extend only to the following “named executive officers,” who are the individuals\nwho served as our principal executive officer and the next two most highly compensated executive officers at the end of the fiscal year\n2026.\n\n \n\nThis section discusses material\ncomponents of the executive compensation programs for Horizon’s executive officers who area named in the “Summary Compensation\nTable” below. In fiscal year 2026, Horizon’s “named executive officers” and their positions were as follows:\n\n \n\n●Brandon\nRobinson, Chief Executive Officer;\n\n \n\n \n●\nJason O’Neill, Chief Operating Officer;\n\n \n \n \n\n \n●\nBrian Merker, Chief Financial Officer;\n\n \n\nThis discussion may contain\nforward-looking statements that are based on Horizon’s current plans, considerations, expectations, and determinations regarding\nfuture compensation programs.\n\n \n\n*Summary Compensation Table*\n\n \n\nThe following table contains\ninformation pertaining to the compensation of Horizon’s named executives for the years-ending May 31, 2026, and May 31, 2025.\n\n \n\nName and Position\n \nYear\n \n \nSalary\n\n($)\n \n \nBonus\n\n($)(1)\n \n \nStock\n\nAwards\n\n($)(2)\n \n \nOption\n\nAwards\n\n($)(3)\n \n \nNon-Equity\n\nIncentive\n\nPlan\n\nCompensation\n\n($)\n \n \nNon-qualified\n\nDeferred\n\nCompensation\n\nEarnings\n\n($)\n \n \nAll\n\nOther\n\nCompensation\n\n($)\n \n \nTotal\n\n($)\n \n\nBrandon Robinson,\n \n \n2026\n \n \n \n422,258\n \n \n \n73,235\n \n \n \n2,446,080\n \n \n \n0\n \n \n \n       —\n \n \n \n   —\n \n \n \n  —\n \n \n \n2,941,573\n \n\n*Chief Executive Officer*\n \n \n2025\n \n \n \n369,036\n \n \n \n52,785\n \n \n \n102,199\n \n \n \n212,000\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n736,020\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nJason O’Neill,\n \n \n2026\n \n \n \n250,417\n \n \n \n43,548\n \n \n \n1,278,962\n \n \n \n0\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n1,572,927\n \n\n*Chief Operating Officer*\n \n \n2025\n \n \n \n254,125\n \n \n \n38,250\n \n \n \n74,273\n \n \n \n156,880\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n523,528\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBrian Merker,\n \n \n2026\n \n \n \n280,781\n \n \n \n52,668\n \n \n \n1,552,126\n \n \n \n0\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n1,885,575\n \n\n*Chief Financial Officer*\n \n \n2025\n \n \n \n269,583\n \n \n \n38,250\n \n \n \n84,763\n \n \n \n183,320\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n575,916\n \n\n \n\n(1)\nAmounts reflect awards under the Company’s short-term incentive plan.  Awards in the fiscal year ending May 31, 2026, were satisfied with cash.  Awards in the fiscal year ending May 31, 2025, were satisfied in the form of Class A ordinary shares.\n\n \n\n(2)\nAmounts reflect the granting of Performance Share Units and the Company’s contribution to each individual under the ESPP (defined below).\n\n \n \n\n(3)\nOptions vest and become exercisable in three equal installments over a 3-year period.  Options granted in the year-ended May 31, 2025, were issued with a strike price equal to $USD 0.61.\n\n \n\n59\n\n \n\n \n\n*Narrative to the Summary Compensation Table*\n\n* *\n\n*Annual Base Salary*\n\n \n\nWe pay our named executive\nofficers a base salary to compensate them for services rendered to our company. The base salary payable to our named executive officers\nis intended to provide a fixed component of compensation reflecting the executive’s skill set, experience, role and responsibilities.\n\n* *\n\n*Equity Compensation*\n\n \n\nWe have granted stock options\nto our employees, including our named executive officers, in order to attract and retain them, as well as to align their interests with\nthe interests of our shareholders. In order to provide a long-term incentive, these stock options vest over three years subject to\ncontinued service.\n\n \n\nIn connection with the Business\nCombination we adopted the 2023 Equity Incentive Plan, effective January 12, 2024. This plan was amended by the shareholders on December\n17, 2024. For additional information about the 2023 Equity Incentive Plan, see the section titled “— *Summary of the 2023\nEquity Incentive Plan*” section of this report.\n\n \n\nOther Elements of Compensation\n\n \n\n*Retirement Savings and Health Spending Account\nand Group Benefits*\n\n \n\nAll of our full-time employees, including our named executive officers,\nare eligible to participate in our pension and health plans. The health spending account program reimburses costs that include medical,\ndental and vision benefits; a group benefits plan to provide for short-term and long-term disability insurance; life and AD&D insurance\nare offered to all full-time employees. In May 2024, the Company established an employee share purchase plan (“ESPP”) whereby\nemployees can elect to allocate between 1-5% of earnings to the purchase of Company stock in the open market, matched equally by Horizon.\n\n* *\n\n*Perquisites and Other Personal Benefits*\n\n \n\nWe determine perquisites on\na case-by-case basis and will provide a perquisite to a named executive officer when we believe it is necessary to attract or\nretain the named executive officer. We did not provide any perquisites or personal benefits to our named executive officers not otherwise\nmade available to our other employees in fiscal year 2026.\n\n \n\nExecutive Compensation Arrangements\n\n* *\n\n*Employment Agreements*\n\n \n\nAs a result of the Business\nCombination, Horizon entered into employment agreements with the Horizon’s executive officers: Brandon Robinson (Chief Executive\nOfficer), Jason O’Neill (Chief Operating Officer), and Brian Merker (Chief Financial Officer) (each an “Employment Agreement,\nand collectively, the “Employment Agreements”).\n\n \n\n60\n\n \n\n \n\nThe Employment Agreements\nall provide for at-will employment that may be terminated by the employee with thirty days’ notice to Horizon of resignation from\nemployment; by Horizon without notice, payment in lieu of notice, benefit continuation (if applicable) or compensation of any kind, where\npermitted by the Ontario Employment Standards Act, 2000, as amended from time to time (the “ESA”), which includes willful\nmisconduct, disobedience or willful neglect of duty that is not trivial and has not been condoned by Horizon; or by Horizon with notice\nor pay in lieu of notice by providing the employee (i) the minimum amount of notice, pay in lieu of notice (or a combination of both),\nseverance pay, vacation pay and benefit continuation (if applicable) and any other entitlements strictly required by the ESA, calculated\nfrom the date of the employee’s original employment with Horizon; plus (ii) such additional amount of payment of Base Salary (as\ndefined below) in lieu of notice (“Additional Pay in Lieu of Notice”), as is necessary to ensure that the aggregate of the\nstatutory notice, pay in lieu of notice and severance pay entitlements under (a) above and the Additional Pay in Lieu of Notice under\nsub-section (ii), (b), at a minimum equals twelve (12) months, and such aggregate shall increase by additional one (1) month payment of\nthe employee’s Base Salary in lieu of notice for each completed year of service from the Effective Date to an overall cumulative\nmaximum of 24 months of Base Salary; plus, (iii) payment of a prorated portion of any bonuses that the employee is eligible to receive\nas of the date of termination, calculated to the end of the Severance Period based upon the average incentive compensation paid to the\nemployee in the two years prior to the year in which notice of termination is communicated. For the purposes of the Employment Agreements,\nthe period for which an employee receives notice and/or payment, calculated from the date the employee is advised of the termination of\nhis employment, is the “Severance Period.”\n\n \n\nIf following a Change of Control\n(as defined in the Employment Agreements), Horizon gives the employee Good Reason to terminate his employment and the related Employment\nAgreement, and provided the employee exercises that right within two years from the date of the Change of Control, the employee shall\nbe entitled to receive the benefits set forth above, as if the employee’s employment had been terminated on a without cause basis.\n“Good Reason” means the occurrence of (i) a constructive termination of employment and of the Employment Agreement; (ii) any\nmaterial and unilateral change in employee’s title, responsibilities, or authority in place at the time of the Change of Control;\n(iii) any material reduction in the Base Salary paid to employee at the time of the Change of Control; (iv) any termination or material\nreduction in the aggregate value of the employee benefit programs, including, but not limited to, pension, life, disability, health, medical\nor dental insurance, in which the employee participated or under which the employee was covered at the time of Change of Control; or (v)\nthe employee’s assignment to any significant, ongoing duties inconsistent with his skills, position (including status, offices,\ntitles and reporting requirements), authority, duties or responsibilities, or any other action by Horizon, which results in material diminution\nof such position.\n\n \n\nThe current base salaries\nunder the Employment Agreements are $USD 315,000 for Brandon Robinson; $CAD 288,875 for Brian Merker, and $CAD 265,000 for Jason O’Neill\n(each a “Base Salary”). Possible annual performance bonuses and equity grants under the 2023 Equity Incentive Plan, as amended,\nare to be determined by Horizon’s compensation committee.\n\n* *\n\n*Contractor Agreement*\n\n \n\nIn connection with the Closing\nof the Business Combination, Horizon entered into a Contractor Agreement (the “Contractor Agreement”), dated January 12, 2024\n(the “Effective Date”), by and among Horizon, 2195790 Alberta Inc. (the “Contractor”) and Stewart Lee (the “Keyman”).\nPursuant to the Contractor Agreement, the Contractor will be providing certain services (the “Services”) as the Head of People\n& Strategy through the Keyman. The term of the Contractor Agreement began on the Effective Date and unless earlier terminated, expired\non December 31, 2025 (the “Expiry Date”). Notwithstanding the expiry of the initial term, the Contractor Agreement currently\ncontinues on a month-to-month basis and may be extended by mutual written agreement of the Parties. Horizon will pay the Contractor for\nthe performance of the Services fees in the amount of $CAD 180.00 per hour (the “Fees”).\n\n \n\n61\n\n \n\n \n\nOutstanding Equity Awards as of May 31, 2026\n\n \n\nThe following table sets forth\ninformation regarding outstanding option awards held by the named executive officers as of May 31, 2026. The applicable vesting provisions\nare described in the footnote following the table.\n\n \n\n \n \nOption\nAwards\n \nStock Awards\n \n\nName (a)\n \nNumber\nof\n\nsecurities\n\nunderlying\n\nunexercised\n\noptions\n\n(#)\n\nexercisable\n\n(b)\n \n \nNumber\nof\n\nsecurities\n\nunderlying\n\nunexercised\n\noptions\n\n(#)\n\nunexercisable\n\n(c)\n \n \nEquity\n\nincentive plan\n\nawards:\n\nNumber of\n\nsecurities\n\nunderlying\n\nunexercised\n\nunearned\n\noptions\n\n(#)\n\n(d)\n \n \nOption\n\nexercise\n\nprice\n\n($USD)\n\n(e)\n \n \nOption\n\nexpiration\n\ndate\n\n(f)\n \nNumber of\n\nshares or\n\nunits of\n\nstock that\n\nhave not\n\nvested\n\n(#)\n\n(g)\n \n \nMarket\n\nvalue of\n\nshares\n\nor units\n\nof stock\n\nthat\n\nhave not\n\nvested\n\n($USD)\n\n(h)\n \n \nEquity\n\nincentive\n\nplan awards:\n\nNumber of\n\nunearned\n\nshares,\n\nunits or\n\nother rights\n\nthat have\n\nnot vested\n\n(#)\n\n(i)\n \n \nEquity\n\nincentive\n\nplan\n\nawards:\n\nMarket\n\nor payout\n\nvalue of\n\nunearned\n\nshares,\n\nunits or\n\nother rights\n\nthat have\n\nnot vested\n\n($)\n\n(j)\n \n\nBrandon Robinson(1)\n \n \n143,251\n \n \n \n—\n \n \n \n—\n \n \n$\n0.55\n \n \nAugust 2, 2030\n \n \n292,532\n \n \n$\n855,656\n \n \n \n—\n \n \n \n—\n \n\n \n \n \n133,333\n \n \n \n266,667\n \n \n \n—\n \n \n$\n0.61\n \n \nFebruary 2, 2035\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nJason O’Neill(1)\n \n \n145,251\n \n \n \n—\n \n \n \n—\n \n \n$\n0.55\n \n \nAugust 2, 2030\n \n \n103,734\n \n \n$\n427,828\n \n \n \n—\n \n \n \n—\n \n\n \n \n \n98,667\n \n \n \n197,333\n \n \n \n—\n \n \n$\n0.61\n \n \nFebruary 2, 2035\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBrian Merker\n \n \n66,667\n \n \n \n33,333\n \n \n \n—\n \n \n$\n0.85\n \n \nMay 30, 2034\n \n \n182,832\n \n \n$\n534,784\n \n \n \n—\n \n \n \n—\n \n\n \n \n \n114,667\n \n \n \n229,333\n \n \n \n—\n \n \n$\n0.61\n \n \nFebruary 2, 2035\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n(1)\nStock options that expire in 2032 were granted at $CAD 0.76 per share and converted for purposes of this table at a foreign exchange rate of $USD 1.00 to $CAD 1.38.\n\n \n\n*Director Compensation*\n\n \n\nNon-employee directors are\ncompensated with a combination of cash and stock. Additionally, we provide reimbursement to our non-employee directors for their\nreasonable expenses incurred in attending meetings of our Board and its committees.\n\n \n\nThe following table sets forth\ninformation regarding compensation earned during the fiscal year-ended May 31, 2026, by each of our non-employee directors who\nserved as a director of the Company during that time, which consists of cash retainers and stock awards:\n\n \n\nName \nFees\nEarned or\nPaid in Cash\n($)  \nStock\nAwards\n($)  \nAll Other\nCompensation\n($)  \nTotal\n($) \n\nTrisha Nomura \n 50,000(1) \n 50,000(1) \n —  \n 100,000(1)\n\nJohn Maris \n 35,833(2) \n 35,833(2) \n —  \n 71,666(2)\n\nJohn Pinsent \n 43,125(2) \n 43,125(2) \n —  \n 86,250(2)\n\nJameel Janjua \n 15,570(1) \n 15,570(1) \n    \n 31,140(1)\n\n \n\n(1)\nExpressed in $USD.\n\n \n\n(2)\nExpressed in $CAD.\n\n \n\n62\n\n \n\n \n\nSummary of the 2023 Equity Incentive Plan\n\n* *\n\n*General*\n\n \n\nThe purpose of the 2023 Equity\nIncentive Plan is to secure for Horizon and its shareholders the benefits inherent in share ownership by the employees and directors of\nHorizon and its affiliates who, in the judgment of the Board, will be largely responsible for its future growth and success, to provide\nincentives to the interests of employees, officers and directors that align their interests to the interests of the shareholders. These\nincentives are provided through the grant of stock options, deferred share units, restricted share units (time based or in the form of\nperformance share units) and share awards (collectively, the “Awards”). Capitalized terms used in this section but not defined,\nshall have the meanings ascribed to them in the 2023 Equity Incentive Plan.\n\n* *\n\n*Share Issuance Limits*\n\n \n\nThe aggregate number of Class\nA ordinary shares that may be subject to issuance under the 2023 Equity Incentive Plan is 7,490,089.\n\n \n\nStock Options\n\n* *\n\n*Option Grants*\n\n \n\nThe 2023 Equity Incentive\nPlan authorizes the board of Horizon to grant options. The number of Class A ordinary shares, the exercise price per Class A ordinary\nshare, the vesting period and any other terms and conditions of options granted pursuant to the 2023 Equity Incentive Plan, from time\nto time are determined by the Board at the time of the grant, subject to the defined parameters of the 2023 Equity Incentive Plan. The\ndate of grant for the Options shall be the date such grant was approved by the Board.\n\n* *\n\n*Exercise Price*\n\n \n\nThe exercise price of any\nOption cannot be less than the closing price on the Nasdaq Capital Market immediately preceding the date of grant (the “Fair Market\nValue”).\n\n* *\n\n*Exercise Period, Blackout Periods and Vesting*\n\n \n\nOptions are exercisable for\na period of ten years from the date the option is granted, or such greater or lesser period as determined by the Board. Options may\nbe earlier terminated in the event of death or termination of employment or appointment. Vesting of Options is determined by the Board.\n\n \n\nThe right to exercise an option\nmay be accelerated in the event a takeover bid in respect of the ordinary shares is made or other change of control transaction.\n\n \n\n63\n\n \n\n \n\nPursuant to the 2023 Equity\nIncentive Plan, with respect to options held by participants who are not U.S. taxpayers, when the expiry date of an Option occurs\nduring, or within nine (9) business days following, a “blackout period”, the expiry date of such option is deemed\nto be the date that is ten (10) business days following the expiry of such blackout period. Blackout periods are imposed by\nHorizon to restrict trading of Horizon’s securities by directors, officers, employees and certain others who hold options to purchase\nClass A ordinary shares, in accordance with Horizon’s insider trading policy and similar policies in effect from time to time, in\ncircumstances where material non-public information exists, including where financial statements are being prepared but results have not\nyet been publicly disclosed.\n\n \n\n*Cashless Exercise Rights*\n\n \n\nCashless exercise rights may\nalso be granted under the 2023 Equity Incentive Plan, at the discretion of the Board, to an optionee in conjunction with, or at any time\nfollowing the grant of, an Option. Cashless exercise rights under the 2023 Equity Incentive Plan effectively allow an optionee to exercise\nan Option on a “cashless” basis by electing to relinquish, in whole or in part, the right to exercise such Option and receive,\nin lieu thereof, a number of fully paid Class A ordinary shares. The number of Class A ordinary shares issuable on the cashless exercise\nright is equal to the quotient obtained by dividing the difference between the aggregate Fair Market Value and the aggregate option price\nof all Class A ordinary shares subject to such option by the Fair Market Value of one (1) Class A ordinary share.\n\n \n\n*Termination or Death*\n\n \n\nIf an optionee dies while\nemployed by Horizon, any Option held by him or her will be exercisable for a period of 6 months or prior to the expiration of the\nOptions (whichever is sooner) by the person to whom the rights of the optionee shall pass by will or applicable laws of descent and distribution.\nIf an optionee is terminated for cause, no Option will be exercisable unless the Board determines otherwise. If an optionee ceases to\nbe employed or engaged by Horizon for any reason other than cause or death, then the options will be exercisable for a period of 90 days\nor prior to the expiration of the Options (whichever is sooner).\n\n \n\nRestricted Share Units (“RSU”)\n\n* *\n\n*RSU Grant*\n\n \n\nThe 2023 Equity Incentive\nPlan authorizes the Board to grant RSUs, in its sole and absolute discretion, to any eligible employee or director. Each RSU provides\nthe recipient with the right to receive a cash payment equal to the market value of a Share (or, at the sole discretion of the Board,\na Share) as a discretionary payment in consideration of past services or as an incentive for future services, subject to the 2023 Equity\nIncentive Plan and with such additional provisions and restrictions as the Board may determine. Each RSU grant shall be evidenced by a\nrestricted share unit grant letter which shall be subject to the terms of the 2023 Equity Incentive Plan and any other terms and conditions\nwhich the Board deem appropriate.\n\n* *\n\n**\n\n64\n\n \n\n* *\n\n*Vesting of RSUs*\n\n \n\nConcurrent with the granting\nof the RSU, the Board shall determine the period of time during which the RSU is not vested and the holder of such RSU remains ineligible\nto receive Class A ordinary shares. Such period of time may be reduced or eliminated from time to time for any reason as determined by\nthe Board. Once the RSU vests, the RSU is automatically settled through a cash payment equal to the market value of a Share (or, at the\nsole discretion of the Board, a Share).\n\n* *\n\n*Retirement or Termination*\n\n \n\nIn the event the participant\nretires, dies or is terminated during the vesting period, any unvested RSU held by the participant shall be terminated immediately provided\nhowever that the Board shall have the absolute discretion to accelerate the vesting date.\n\n \n\nDeferred Share Units (“DSU”)\n\n* *\n\n*DSU Grant*\n\n \n\nThe 2023 Equity Incentive Plan authorizes the Board to grant DSUs,\nin its sole and absolute discretion in a lump sum amount or on regular intervals to eligible directors. Each DSU grant shall be evidenced\nby a DSU grant letter which shall be subject to the terms of the 2023 Equity Incentive Plan and any other terms and conditions which the\nBoard deems appropriate. A DSU entitles the recipient to receive, for each DSU redeemed, a cash payment equal to the market value of a\nshare; alternatively, the Company may, at its sole discretion, elect to settle all or any portion of the cash payment obligation by the\nissuance of Class A ordinary shares from treasury.\n\n \n\n*Vesting of DSUs*\n\n \n\nA Participant is only entitled\nto redemption of a DSU when the eligible director ceases to be a director of the Combined Entity for any reason, including termination,\nretirement or death. DSUs of an eligible director who is a U.S. Taxpayer shall be redeemed and settled by the Company as soon as\nreasonably practicable following the separation from service.\n\n \n\nPerformance Share Units (“PSU”)\n\n* *\n\n*PSU Grant*\n\n \n\nThe 2023 Equity Incentive\nPlan authorizes the Board to grant PSU’s, in its sole and absolute discretion in a lump sum amount or on regular intervals to eligible\ndirectors. Each PSU grant shall be evidenced by a PSU grant letter which shall be subject to the terms of the 2023 Equity Incentive Plan\nand any other terms and conditions which the Board deems appropriate. A PSU entitles the recipient to receive, for each PSU redeemed,\none Class A ordinary share.\n\n \n\n*Vesting of PSU’s*\n\n**\n\n \n\nA Participant is only entitled\nto redemption of a PSU when the related PSU vesting conditions have been met, which are defined in the Board’s sole discretion at\nthe time of issuance.\n\n \n\n*Retirement or Termination*\n\n \n\nIn the event the participant\nretires, dies or is terminated during the vesting period, any unvested PSU held by the participant shall be terminated immediately, provided,\nhowever, that the Board shall have the absolute discretion to accelerate the vesting date.\n\n \n\nShare Awards\n\n \n\nThe Board, on the recommendation\nof the compensation committee, shall have the right, subject to the limitations set forth in the 2023 Equity Incentive Plan, to issue\nor reserve for issuance, for no cash consideration, to any eligible person, any number of Class A ordinary shares as a discretionary bonus\nof Class A ordinary shares subject to such provisos and restrictions as the Board may determine. The aggregate number of Class A ordinary\nshares that may be issued as Share Awards is 1,000,000.\n\n \n\n65\n\n \n\n \n\nProvisions Applicable to all Grant of Awards\n\n* *\n\n*Participation Limits*\n\n \n\nThe aggregate number of Class\nA ordinary shares that may be issued and issuable under the 2023 Equity Incentive Plan together with any other securities-based compensation\narrangements of Horizon, as applicable:\n\n \n\n(a)to\ninsiders shall not exceed 10% of Horizon’s outstanding issue from time to time;\n\n \n\n(b)to\ninsiders within any one-year period shall not exceed 10% of the Horizon’s outstanding issue from time to time; and\n\n \n\n(c)to\ninsiders within any one-year period, shares issuable under Awards under this 2023 Equity Incentive Plan shall not exceed 5% of Horizon\noutstanding issue from time to time.\n\n \n\nAny Award granted pursuant to the 2023 Equity Incentive Plan, prior\nto a participant becoming an insider, shall be excluded from the purposes of the limits set out in (a) and (b) above. The aggregate\nnumber of Options that may be granted under the 2023 Equity Incentive Plan to any one non-employee director of the Combined Entity within\nany one-year period shall not exceed a maximum value of $CAD 150,000 worth of securities, and together with any Restricted Share Rights\nand Deferred Share Units granted under the 2023 Equity Incentive Plan and any securities granted under all other securities-based\ncompensation arrangements, such aggregate value shall not exceed $CAD 200,000 in any one-year period.\n\n* *\n\n*Transferability*\n\n \n\nPursuant to the 2023 Equity\nIncentive Plan, any Awards granted to a participant shall not be transferable except by will or by the laws of descent and distribution.\nDuring the lifetime of a participant, Awards may only be exercised by the Participant.\n\n* *\n\n*Amendments to the 2023 Equity Incentive Plan*\n\n \n\nThe Board may amend, suspend\nor terminate the 2023 Equity Incentive Plan or any Award granted under the 2023 Equity Incentive Plan without shareholder approval, including,\nwithout limiting the generality of the foregoing: (i) changes of a clerical or grammatical nature; (ii) changes regarding the\npersons eligible to participate in the 2023 Equity Incentive Plan; (iii) changes to the exercise price; (iv) vesting, term and\ntermination provisions of Awards; (v) changes to the cashless exercise right provisions; (vi) changes to the authority and role\nof the Board under the 2023 Equity Incentive Plan; and (vii) any other matter relating to the 2023 Equity Incentive Plan and the\nAwards granted thereunder, provided however that:\n\n \n\n(a)such\namendment, suspension or termination is in accordance with applicable laws and the rules of any stock exchange on which the Combined\nEntity’s shares are listed;\n\n \n\n(b)no\namendment to the 2023 Equity Incentive Plan or to an Award granted thereunder will have the effect of impairing, derogating from or otherwise\nadversely affecting the terms of an Award which is outstanding at the time of such amendment without the written consent of the holder\nof such Award;\n\n \n\n(c)the\nexpiry date of an Option shall not be more than ten (10) years from the date of grant of such Option, provided, however, that at\nany time the expiry date should be determined to occur either during a blackout period or within ten business days following\nthe expiry of a blackout period, the expiry date of such Option shall be deemed to be the date that is the tenth business day following\nthe expiry of the blackout period;\n\n \n\n(d)the\nBoard shall obtain shareholder approval of:\n\n \n\n(i)any\namendment to the aggregate number of shares issuable under the 2023 Equity Incentive Plan;\n\n \n\n(ii)any\namendment to the limitations on shares that may be reserved for issuance, or issued, to insiders;\n\n \n\n(iii)any amendment that would reduce the exercise price of an outstanding\nOption other than pursuant to a declaration of stock dividends of shares or consolidations, subdivisions or reclassification of shares,\nor otherwise, the number of shares available under the 2023 Equity Incentive Plan; and\n\n \n\n(iv)any\namendment that would extend the expiry date of any Option granted under the 2023 Equity Incentive Plan except in the event that such\noption expires during or within ten (10) business days following the expiry of a blackout period.\n\n \n\n66\n\n \n\n \n\nIf the 2023 Equity Incentive\nPlan is terminated, the provisions of the 2023 Equity Incentive Plan and any administrative guidelines and other rules and regulations\nadopted by the Board and in force on the date of termination will continue in effect as long as any Award pursuant thereto remain outstanding.\n\n \n\n*Administration*\n\n \n\nThe 2023 Equity Incentive\nPlan is administered by the Board, which may delegate its authority to a committee or plan administrator. Subject to the terms of the\n2023 Equity Incentive Plan, applicable law and the rules of Nasdaq, the Board (or its delegate) will have the power and authority to:\n(i) designate the eligible participants who will receive Awards, (ii) designate the types and amount of Award to be granted\nto each participant, (iii) determine the terms and conditions of any Award, including any vesting conditions or conditions based\non performance of the Corporation or of an individual (“Performance Criteria”); (iv) interpret and administer the 2023\nEquity Incentive Plan and any instrument or agreement relating to it, or any Award made under it; and (v) make such amendments to\nthe 2023 Equity Incentive Plan and Awards as are permitted by the 2023 Equity Incentive Plan and the rules of the SEC and Nasdaq.\n\n \n\nSummary of U.S. Federal Income Tax Consequences\n\n \n\nThe following summary is intended\nonly as a general guide to the material U.S. federal income tax consequences of participation in the 2023 Equity Incentive Plan.\nThe summary is based on existing U.S. laws and regulations, and there can be no assurance that those laws and regulations will not\nchange in the future. The summary does not purport to be complete and does not discuss the tax consequences upon a participant’s\ndeath, or the provisions of the income tax laws of any municipality, state or foreign country in which the participant may reside. As\na result, tax consequences for any particular participant may vary based on individual circumstances. The summary assumes that awards\ngranted under the 2023 Equity Incentive Plan to U.S. taxpayers will be exempt from, or will comply with, Section 409A of the\nCode. If an award is not either exempt from, or in compliance with Section 409A, less favorable tax consequences may apply.\n\n \n\n*Nonstatutory Stock Options.*\n\n \n\nOptions granted under the\n2023 Equity Incentive Plan will be nonstatutory stock options having no special U.S. tax status. An optionee generally recognizes\nno taxable income as the result of the grant of such an option. Upon exercise of a nonstatutory stock option, the optionee normally recognizes\nordinary income equal to the amount that the fair market value of the shares on such date exceeds the exercise price and Horizon generally\nwill be allowed a compensation expense deduction for the amount that the optionee recognizes as ordinary income. If the optionee is an\nemployee, such ordinary income generally is subject to withholding of income and employment taxes. Upon the sale of stock acquired by\nthe exercise of a nonstatutory stock option, any gain or loss, based on the difference between the sale price and the fair market value\non the exercise date, will be taxed as capital gain or loss. No tax deduction is available to Horizon with respect to the grant of a nonstatutory\nstock option or the sale of the stock acquired pursuant to such grant.\n\n* *\n\n*Restricted Share Rights, Performance Awards\nand Dividend Equivalents.*\n\n \n\nRecipients of grants of restricted\nstock units, performance awards or dividend equivalents (collectively, “deferred awards”) will not incur any federal income\ntax liability at the time the awards are granted. Award holders will recognize ordinary income equal to (a) the amount of cash received\nunder the terms of the award or, as applicable, (b) the fair market value of the shares received (determined as of the date of receipt)\nunder the terms of the award. Dividend equivalents received with respect to any deferred award will also be taxed as ordinary income.\nShares to be received pursuant to a deferred award generally become payable on the date or payment event, as specified in the applicable\naward agreement. For awards that are payable in shares, a participant’s tax basis is equal to the fair market value of the shares\nat the time the shares become payable. Upon the sale of the shares, appreciation (or depreciation) after the shares are paid is treated\nas either short-term or long-term capital gain (or loss) depending on how long the shares have been held.\n\n \n\n67\n\n \n\n  \n\n*Share Awards*\n\n \n\nIf a Share Award is payable\nin shares that is subject to a substantial risk of forfeiture, unless a special election is made by the holder of the award under the\nCode, the holder must recognize ordinary income equal to the fair market value of the shares received (determined as of the first time\nthe shares become transferable or not subject to substantial risk of forfeiture, whichever occurs earlier). The holder’s basis for\nthe determination of gain or loss upon the subsequent disposition of shares acquired pursuant to a Share Award will be the amount ordinary\nincome recognized either when the shares are received or when the shares are vested.\n\n \n\n*Section 409A.*\n\n \n\nSection 409A of the Code\nprovides certain requirements for non-qualified deferred compensation arrangements with respect to an individual’s deferral and\ndistribution elections and permissible distribution events. Except for DSUs, Awards granted under the 2023 Equity Incentive Plan do not\nhave any deferral feature that is subject to the requirements of Section 409A of the Code. If an award is subject to and fails to\nsatisfy the requirements of Section 409A of the Code, the recipient of that award may recognize ordinary income on the amounts deferred\nunder the award, to the extent vested, which may be prior to when the compensation is actually or constructively received. Also, if an\naward that is subject to Section 409A fails to comply with Section 409A’s provisions, Section 409A imposes an additional\n20% federal income tax on compensation recognized as ordinary income, as well as interest on such deferred compensation. Certain states\nhave enacted laws similar to Section 409A which impose additional taxes, interest and penalties on non-qualified deferred compensation\narrangements. The Combined Entity will also have withholding and reporting requirements with respect to such amounts.\n\n \n\n*Tax Effect for the Combined Entity.*\n\n \n\nHorizon generally will be\nentitled to a tax deduction in connection with an award under the 2023 Equity Incentive Plan in an amount equal to the ordinary income\nrealized by a participant and at the time the participant recognizes such income (for example, the exercise of a nonstatutory stock option).\nSpecial rules could limit the deductibility of compensation paid to the Combined Entity’s chief executive officer and other “covered\nemployees” as determined under Section 162(m) and applicable guidance.\n\n \n\nTHE FOREGOING IS ONLY A SUMMARY OF THE EFFECT\nOF THE U.S. FEDERAL INCOME TAXATION UPON PARTICIPANTS AND THE COMBINED COMPANY UNDER THE 2023 EQUITY INCENTIVE PLAN. IT DOES\nNOT PURPORT TO BE COMPLETE AND DOES NOT DISCUSS THE TAX CONSEQUENCES OF A PARTICIPANT’S DEATH OR THE PROVISIONS OF THE INCOME TAX\nLAWS OF ANY MUNICIPALITY, STATE, OR FOREIGN COUNTRY IN WHICH THE PARTICIPANT MAY RESIDE.\n\n \n\n2023 Equity Incentive Plan Benefits\n\n \n\nBecause awards under the 2023\nEquity Incentive Plan are discretionary, the benefits or amounts to be received by or allocated to participants and the number of shares\nto be granted under the 2023 Equity Incentive Plan cannot be determined at this time except as set forth below.\n\n \n\nUpon the completion of the\nBusiness Combination, the 2023 Equity Incentive Plan replaced the Prior Plan. We agreed to exchange outstanding awards under the Prior\nPlan for Horizon Options that will be governed by the 2023 Equity Incentive Plan.\n\n \n\nSummary of the ESPP\n\n \n\n*General*\n\n* *\n\nThe\nESPP provides eligible employees of the Company and its designated affiliates with the opportunity to acquire the Company’s Class\nA ordinary shares through payroll contributions, matched by the Company, up to a defined maximum percentage of the employee’s base\nsalary. The acquisition of Class A ordinary shares is through open market purchases executed by a broker acting on behalf of the Company.\nThe purpose of the ESPP is to retain and incentivize eligible employees by aligning their interests with those of the Company and its\nshareholders. By facilitating regular purchases of the Company’s Class A ordinary shares, the plan encourages long-term commitment\nand participation in the Company’s growth and success.\n\n \n\n68\n\n \n\n \n\n*Administration*\n\n \n\nThe\nESPP is administered by the Board, which may delegate authority to the compensation committee or other designated officers. The Board\nhas broad powers to interpret, amend, and manage the ESPP, including the power to: (1) construe and interpret the ESPP, and to establish,\namend and revoke rules and regulations for its administration, including the power to correct any defect, omission or inconsistency in\nthe ESPP, in a manner and to the extent it deems necessary or expedient to make the ESPP fully effective; (2) settle all controversies\nregarding the ESPP and Class A ordinary shares procured under the ESPP; (3) suspend or terminate the ESPP at any time as provided in the\nESPP; (4) amend the ESPP at any time as provided in ESPP; (5) exercise such powers and to perform such acts as it deems necessary or expedient\nto promote the best interests of the Company and to carry-out the intent that the ESPP be treated as an employee stock purchase plan;\nand (6) adopt such rules, procedures and sub-plans as are necessary or appropriate to permit or facilitate participation in the ESPP by\nemployees located in different jurisdictions.\n\n \n\n*Eligibility*\n\n* *\n\nOnly\nemployees of the Company or its designated affiliates may participate in the ESPP.\n\n \n\n*Plan Structure*\n\n* *\n\nOn\nthe second payroll cycle of each month in which the Company processes payments in exchange for services to employees, a broker executes\nopen market purchases of Class A ordinary shares on behalf of the Company. Contributions are made via payroll deductions, with the Company\nmatching 50% of the amount contributed by each eligible employee, up to: (1) 10% of the employee’s base salary for the Company’s\nnamed executive officers, and (2) 6% of the employee’s base salary for all other employees. Shares acquired through Company matching\ncontributions may be subject to a 12-month holding period (the “Holding Period”).\n\n \n\n*Participation and\nTermination*\n\n* *\n\nAn\neligible employee may elect to participate in the ESPP and authorize payroll deductions as the means of making contributions by completing\nand delivering to the Company or a Company designee, an enrollment form provided by the Company or Company designee. The enrollment form\nspecifies the percentage amount of contributions to purchase Class A ordinary shares, such amount not to exceed the maximum amount permitted\nby the ESPP.\n\n \n\nA\nparticipant may cease making contributions and withdraw from the ESPP by delivering to the Company or a Company designee a withdrawal\nform provided by the Company. A participant’s withdrawal from the ESPP may restrict the participant’s ability to rejoin the\nESPP for a period of 12 months.\n\n \n\nParticipation\nin the ESPP will terminate immediately if the participant is no longer an employee for any reason or for no reason (subject to any post-employment\nparticipation period required by applicable law), or is otherwise no longer eligible to participate.\n\n \n\nIf\nan employee ceases participation prior to the expiration of the Holding Period, the employee will not be eligible to receive those shares\nand the taxable benefit recorded will be reversed. Those shares will be sold in the open market with funds returned to the Company.\n\n \n\n*Beneficiaries*\n\n* *\n\nParticipants\nmay designate beneficiaries to receive shares or contributions in the event of death. In the absence of a valid designation, the Company\nmay transfer shares to the estate or, at its discretion, to a spouse, dependent, or relative.\n\n \n\n*Amendments and\nTermination*\n\n* *\n\nThe\nBoard may amend, suspend, or terminate the ESPP at any time. Certain amendments may require shareholder approval, in accordance with applicable\nlaw. The Board may also establish procedures to address currency exchange, contribution errors, and other administrative matters.\n\n \n\n*Taxes*\n\n \n\nThe Company disclaims any obligation to maintain favorable tax treatment.\nParticipants are responsible for satisfying all tax-related obligations, which may be fulfilled through salary withholding or other approved\nmethods.\n\n \n\nCompensation Committee\nInterlocks and Insider Participation\n\n \n\nNone\nof the members of the compensation committee was at any time one of Horizon’s officers or employees. None of Horizon’s executive\nofficers currently serves, or has served during the last completed fiscal year, on the compensation committee or board of directors of\nany other entity that has one or more executive officers that will serve as a member of our Board or compensation committee.\n\n \n\n69"}