# EDGAR Filing Document

**Accession Number:** 0002067767
**File Stem:** 0001493152-25-011751
**Filing Date:** 2025-8
**Character Count:** 1125536
**Document Hash:** dc94a0779be0a862f00915735510ea27
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-011751.hdr.sgml**: 20250808

**ACCESSION NUMBER**: 0001493152-25-011751

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 34

**FILED AS OF DATE**: 20250808

**DATE AS OF CHANGE**: 20250808

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** OFF THE HOOK YS INC.
- **CENTRAL INDEX KEY:** 0002067767
- **STANDARD INDUSTRIAL CLASSIFICATION:** SHIP & BOAT BUILDING & REPAIRING [3730]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 332636992
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288551
- **FILM NUMBER:** 251198543

**BUSINESS ADDRESS:**
- **STREET 1:** 1701 JEL WADE DR
- **CITY:** WILMINGTON
- **STATE:** NC
- **ZIP:** 28401
- **BUSINESS PHONE:** (910) 772 9277

**MAIL ADDRESS:**
- **STREET 1:** 1701 JEL WADE DR
- **CITY:** WILMINGTON
- **STATE:** NC
- **ZIP:** 28401

**As filed with the U.S. Securities and Exchange Commission on August 8, 2025**

**Registration No. 333-288551**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**Amendment No. 2** 

**to**

**FORM S-1**

**REGISTRATION STATEMENT**

**UNDER**

**THE SECURITIES ACT OF 1933**

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| |
|:---|
| **OFF THE HOOK YS INC.** |
| (Exact name of registrant as specified in its charter) |

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| | | |
|:---|:---|:---|
| **Nevada** | **3730** | **33-2636992** |
| (State or other jurisdiction of<br> incorporation or organization)<br>| (Primary Standard Industrial<br> Classification Code Number)<br>| (I.R.S. Employer<br> Identification No.)<br>|

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**1701 Jel Wade Dr,<br> Wilmington,<br> NC 28401**

**Tel: (910) 772-9277**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Brian S John**

**Chief Executive Officer**

**Off the Hook YS Inc.**

**1701 Jel Wade Dr,<br> Wilmington,<br> NC 28401**

**Tel: (910) 772-9277**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

*Copies to:*

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|:---|:---|
| **Joseph M. Lucosky, Esq.**<br> **Soyoung Lee, Esq.**<br> **Lucosky Brookman LLP**<br> **101 Wood Avenue South, 5**<sup>th</sup> **Floor**<br> **Woodbridge, NJ 08830**<br> **Telephone: (732) 395-4402**<br>| **Gregory Sichenzia, Esq.**<br> **Arthur S.Marcus, Esq.**<br> **Sichenzia Ross Ference Carmel LLP<br> 1185 Avenue of the Americas, 31st Floor<br> New York, New York 10036<br> Telephone: (212) 930-9700**<br>|

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**Approximate date of commencement of proposed sale to the public:**

**As soon as practicable after this Registration Statement is declared effective.**

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.**

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| | | |
|:---|:---|:---|
| **PRELIMINARY PROSPECTUS**<br>| **SUBJECT TO COMPLETION** | **DATED August 8, 2025** |

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**5,000,000** **Shares**

**Common Stock**

![](formdrs_001.jpg)

**Off The Hook YS Inc.**

This is a firm commitment initial public offering of 5,000,000 shares of common stock, par value $0.001 of Off The Hook YS Inc., a Nevada corporation. We currently estimate that the public offering price of our shares will be between $4.00 and $6.00 per share.

Prior to our initial public offering, there has been no public market for our common stock. We have applied to list our common stock on New York Stock Exchange American Exchange ("NYSE American") under the symbol " ".

We are an "emerging growth company" under the federal securities laws and, as such, we have elected to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "Prospectus Summary - Implications of Being an Emerging Growth Company and a Smaller Reporting Company."

After the completion of this offering, Mr. Jason Ruegg, our founder, President and Chairman of the Board, will beneficially own % of our total issued and outstanding shares of common stock and total voting power, assuming the option to purchase additional shares of common stock is not exercised by the underwriter. As a result, we will be a "controlled company" as defined under the NYSE American Rules. As a "controlled company," we are permitted to elect not to comply with certain corporate governance requirements. See "*Risk Factors —We are a "controlled company" within the meaning of the NYSE American Rules and, as a result, will rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies*."

**Investing in our common stock involves a high degree of risk. Before buying any common stock, you should carefully read the discussion of the material risks of investing in our common stock under the heading "Risk Factors" beginning on page 13 of this prospectus.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed on the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.**

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| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Initial public offering price<sup>(1)</sup> | $| $|
| Underwriting discounts and commissions<sup>(2)</sup> | $| $|
| Proceeds to us, before expenses  | $| $|

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(1) The initial public offering price per share is assumed to be $5.00, which is the midpoint of the
 $4.00 and $6.00 per share range

(2) Underwriting discounts and commissions do not include (i) a non-accountable
 expense allowance equal to 1.0% of the initial public offering price payable to the underwriters, and (ii) warrants to purchase
 up to a total 5% of the shares of common stock sold in the offering to be issued to the underwriter upon closing, which will be exercisable
 during the four and one-half year period commencing 180 days from the commencement of sales of the securities in the offering, at a
 price per share equal to 125% of the public offering price per share of common stock at the offering. We refer you to "Underwriting"
 beginning on page 99 for additional information regarding underwriters' compensation.

We have granted a 45-day option to the underwriter to purchase up to an additional 750,000 shares of common stock to cover over-allotments, if any.

Delivery of the common stock is expected to be made on or about , 2025.

**ThinkEquity**

The date of this prospectus is , 2025

![](formdrs_003.jpg)

![](forms-1_001.jpg)

![](formdrs_005.jpg)

![](formdrs_006.jpg)

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [THE OFFERING](#a_002) | 11 |
| [RISK FACTORS](#a_003) | 13 |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#V_001) | 33 |
| [INDUSTRY AND OTHER DATA](#V_002) | 35 |
| [USE OF PROCEEDS](#V_003) | 35 |
| [DIVIDEND POLICY](#V_004) | 36 |
| [CAPITALIZATION](#V_005) | 36 |
| [DILUTION](#V_006) | 38 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#V_007) | 39 |
| [BUSINESS](#m_001) | 54 |
| [MANAGEMENT](#m_002) | 71 |
| [EXECUTIVE AND DIRECTOR COMPENSATION](#m_003) | 79 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#m_004) | 86 |
| [PRINCIPAL STOCKHOLDERS](#m_005) | 87 |
| [DESCRIPTION OF CAPITAL STOCK](#m_006) | 88 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#m_007) | 92 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS OF OUR COMMON STOCK](#m_008) | 94 |
| [UNDERWRITING](#m_009) | 99 |
| [LEGAL MATTERS](#m_010) | 107 |
| [EXPERTS](#m_011) | 107 |
| [WHERE YOU CAN FIND MORE INFORMATION](#m_012) | 107 |
| [INDEX TO FINANCIAL STATEMENTS](#m_013) | F-1 |

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Neither we nor the underwriter have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectus prepared by or on behalf of us or to which we have referred you. We take no responsibility for and can provide no assurance as to the reliability of any other information that others may give you. This prospectus is an offer to sell only the shares of common stock offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus or in any applicable free writing prospectus is current only as of its date, regardless of its time of delivery or any sale of our common stock. Our business, financial condition, results of operations and prospects may have changed since that date.

For investors outside the United States: Neither we nor the underwriter have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of common stock and the distribution of this prospectus outside the United States.

This prospectus contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. See "Risk Factors" and "Special Note Regarding Forward-Looking Statements."

i

**ABOUT THIS PROSPECTUS**

Except where the context otherwise requires or where otherwise indicated throughout this registration statement, the terms "Off the Hook YS Inc.," "Off the Hook," "OTHYS," "we," "us," our," "our company," "Company" and "our business" refer to Off The Hook YS Inc. Please see "Corporate Structure and Background" in the "*Prospectus Summary"* and "*Business"* sections relating to our reorganization in connection with our initial public offering.

ii

**PROSPECTUS SUMMARY**

*This summary highlights, and is qualified in its entirety by, the more detailed information and financial statements included elsewhere in this prospectus. This summary does not contain all of the information that may be important to you in making your investment decision. You should read this entire prospectus carefully, especially the "Risk Factors," "Special Note Regarding Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and the related notes included elsewhere in this prospectus, before making an investment decision.*

*Unless the context indicates otherwise, as used in this prospectus, the terms "we," "us," "our," "our company," "OTHYS" and "our business" refer to Off The Hook YS Inc. and its affiliates. Please see "Corporate Structure and Background" in this Prospectus Summary section relating to our reorganization in connection with our initial public offering*.

*If our listing application is not approved by NYSE American, we will not be able to consummate the offering.*

**Off The Hook YS Inc. ("OTHYS" or the "Company")**

We are a premier yacht and boat dealership specializing in the buying, selling, and wholesaling of yachts and boats. Founded in 2012 by Jason Ruegg, we have grown into a go-to wholesaler in the industry, recognized for its innovation, expertise, and expansive operations. Over the past decade, OTHYS has become a go-to wholesaler in the marine industry, earning numerous accolades. We have been named one of the 500 fastest-growing companies in the United States by Inc. 500 for two consecutive years and are consistently ranked as a Top 100 Dealer in the USA by Boating Industry, a magazine for boating professionals. Today, OTHYS generates over $90 million in annual boat and yacht sales, operating across eight locations with a team of 35 sales representatives who transact on more than 400 vessels each year. Our success is built on a commitment to excellence, emphasizing the hiring of highly skilled professionals who embody integrity and a passion for the boating industry. By prioritizing relationship-building and ensuring client satisfaction, OTHYS believes that we have established ourselves as the go-to wholesaler in the industry.

**Our Business Model**

We have a vertically integrated business model supported by a diverse portfolio of affiliates and marine-related business units, enabling us to offer a full-service experience across the entire lifecycle of used boats and yachts.

Our affiliates are:

● <u>Off The Hook Yacht Sales, NC LLC</u> ("OTHYS NC"): Specializing in the buying, selling, and wholesaling of yachts and boats.

&nbsp;&nbsp;&nbsp;&nbsp;

● <u>Azure Funding, LLC</u> ("Azure Funding"): A recreational loan broker and lender providing financing solutions for individuals, dealerships, and brokerages.

● <u>OTH Simon Marin YF, LLC</u>: A boat dealership created to run Yellow Fin sales in Miami.

Our operating units include :

● <u>We Buy Boats</u>: WeBuyBoats.com is our website that focuses on the direct acquisition and resale of used vessels, which is owned by OTHYS NC.

● <u>OTH Yacht Services</u>: A service center that provides high-quality maintenance, repair, and support services, which is owned and operated by OTHYS NC.

● <u>Marine Asset Recovery</u> (MAR): A marine asset recovery unit specializes in the repossession and recovery of vessels, which is owned and operated by OTHYS NC.

● <u>The Boat Center</u>: The exclusive Yellowfin Miami dealership, offering sales and support for Yellowfin boats, which is owned and operated by OTH Simon Marin YF, LLC.

● <u>OTHYS Customer Relationship Management (CRM)</u>: A proprietary patent pending technology platform for customer relationship management, data storage, and analysis, enhancing efficiency and decision-making across all operations, which is owned by OTHYS NC.

The synergies amongst these entities are central to OTHYS' success, as they enable seamless operations and comprehensive services. Azure Funding, a recreational financing platform that provides loan brokerage, hard money lending, and processing services, primarily for marine buyers, supports both sales and repossession efforts by providing tailored financing solutions, while OTH Yacht Services ensures vessels remain in optimal condition. Marine Asset Recovery enhances resale opportunities through efficient repossession processes, and The Boat Center brings exclusive dealership opportunities to clients. By integrating these services, we maintain a streamlined and customer-focused approach.

Our business model encompasses expertise in acquiring and reselling pre-owned vessels, facilitating trades, and connecting buyers and sellers within the used boat market. WeBuyBoats.com, our proprietary lead-generation platform, serves as a national pipeline for high-quality inventory. The site attracts private sellers and dealers looking to quickly liquidate trade-in boats and pre-owned vessels. These leads directly fuel OTHYS's wholesale and brokerage operations, supporting our volume-first, showroom-free model. Our comprehensive operations also include delivering maintenance and repair services through OTH Yacht Services, recovering marine assets via Marine Asset Recovery, and leveraging Azure Funding for financing solutions. Exclusive dealership partnerships, such as The Boat Center's Yellowfin dealership, and the use of OTHYS CRM for advanced data-driven operations further enhance the business's capabilities. Through our integrated operations and unwavering dedication to excellence, we believe that OTHYS continues to set the standard for the yacht and boat dealership industry.

**Our Competitive Advantage**

We believe the following key attributes make our company a compelling investment opportunity:

<u>Proprietary AI-Driven CRM System (Patent Pending)</u>

We believe our proprietary AI-powered CRM system is a game-changer in the used boat market. It continuously collects and analyzes data on every boat we bid on, purchase, and sell. With hundreds of thousands of data points, the system generates automated bid recommendations, minimizing human error and ensuring more informed decision-making.

This system empowers our brokers by providing instant access to crucial insights, including:

● What we've paid for similar boats.

● Past bids on comparable boats.

● Final selling prices of similar boats.

● Automated recommendations based on historical trends.

By consolidating all relevant data at the click of a button, our platform helps brokers make better, data-driven decisions, reducing costly mistakes and improving efficiency.

<u>Wanted-To-Buy (WTB) Lead Matching</u>

Our system also enables brokers to input "Wanted-To-Buy" (WTB) leads. For example, if a customer is looking for a 38' Fountain, brokers can enter the specific details and preferences into the system. If we bid on a boat that meets those criteria, the system automatically alerts the broker and/or the customer. Additionally, brokers can configure automated emails to notify customers—even if they weren't the ones who placed the bid—ensuring seamless lead follow-up.

We anticipate our network will expand to include hundreds (eventually thousands) of brokers and wholesalers nationwide, the system will process and match countless daily buy and sell leads, significantly increasing deal velocity and efficiency.

<u>Comprehensive Broker Management & Performance Tracking</u>

Beyond lead matching, our CRM system offers robust operational support, including:

● Automated commission calculations and payouts.

● Task and lead assignment functionalities.

● A dynamic broker ranking dashboard to encourage internal competition and performance tracking.

<u>Strategic AI Partnership</u>

On February 25, 2025, we signed a master services agreement with NexGen AI to integrate their cutting-edge AI technology. This partnership enables us to incorporate external boat buy/sell data, further enhancing the accuracy and predictive power of our proprietary CRM system.

With these technological advantages, we believe that we are not only revolutionizing how used boats are bought and sold but also positioning ourselves as the clear leader in this space.

***Recognized Brand.*** With over 15 years of proven results through buying and selling hundreds of millions of dollars in boats, we believe we are well-known among boating enthusiasts for service, performance, quality, and value.

***Experienced Management Team***. We have established a senior level team of managers and engineers with many members having in excess of 20 or more years in their respective field. Our team has shown the ability to design and develop new products, enhance operations, strengthen our distribution network, and recruit industry talent. Our directive as a management team over the next few years will be to introduce new innovative products with scalability, to manufacture and market those products, and drive improvements to our manufacturing, quality, and product development systems and processes.

**Our Market Opportunity**

The marine industry presents a significant and expanding market opportunity for us. We operate in the pre-owned yacht and boat sales market, with a growing presence in new boat sales, brokerage, financing, servicing, and asset recovery. OTHYS' addressable market includes a wide range of boat categories, including center consoles, sportfish yachts, motor yachts, high-performance boats, and luxury vessels.

The U.S. recreational boating industry continues to experience strong growth, with annual sales of boats, marine products, and services totaling approximately $56.7 billion in 2022, according to the National Marine Manufacturers Association (NMMA). In recent years, pre-owned boat sales have consistently outpaced new boat sales, reflecting a shift in consumer preferences toward high-quality used boats at more competitive price points. We believe that this trend positions OTHYS as a key player in the growing secondary market.

There are several market trends that are driving expansion in OTHYS' addressable market, including:

● Increased demand for pre-owned boats: The rising cost of new boats and supply chain constraints have fueled higher demand for pre-owned inventory, benefiting OTHYS' wholesale and resale model.

● Growth in center console and offshore fishing boats: The center console segment has become one of the fastest-growing categories in the boating industry, as more buyers seek versatile, multi-purpose boats suited for both fishing and recreation.

● Rising participation in recreational boating: The post-pandemic surge in outdoor activities has led to record-high participation in recreational boating, with new buyers entering the market at unprecedented rates. This shift has expanded the customer base for both entry-level and high-end vessels.

● Technological advancements driving resale demand: Innovations in marine technology, such as improved fuel efficiency, onboard automation, and digital navigation systems, have shortened product cycles and increased the resale value of late-model boats, strengthening the pre-owned sales market.

● Shifting demographics and lifestyle preferences: Younger generations are increasingly entering the boating market, driving demand for affordable, high-quality used boats. Additionally, high-net-worth buyers are investing in larger, luxury yachts as part of a growing trend in high-end leisure experiences.

● Financial accessibility and alternative lending solutions: The expansion of boat financing and alternative lending options, including hard money loans through Azure Funding, has made boat ownership more accessible to a wider audience, further expanding OTHYS' potential customer base.

● Expansion of online sales and digital marketplaces: The shift toward digital transactions and online boat sales platforms has created new opportunities for OTHYS to capture market share through WeBuyBoats.com, our brokerage network, and auction platform initiatives.

With a vertically integrated business model that spans wholesale, retail, financing, servicing, and repossession, OTHYS is uniquely positioned to capitalize on these trends and expand its footprint in the growing marine industry. As demand for pre-owned and new boats continues to rise, OTHYS stands at the forefront of this market opportunity, leveraging its expertise, nationwide network, and operational scale to drive sustained growth

**Our Business Strategy**

We are executing a dynamic growth strategy focused on capital expansion, operational scaling, and an integrated business model that maximizes profitability across multiple revenue streams.

The Company's current floorplan financing is personally guaranteed by our President, Jason Ruegg, including a lien on his personal residence. While this structure has supported growth to date, it imposes a natural cap on our appetite for risk and limits our ability to fully leverage available financing. Upon completion of this Offering, we intend to remove the personal guarantee, secure low-interest floorplan financing, and utilize institutionally backed credit facilities. This shift is expected to significantly expand our borrowing capacity—targeting $50 million or more in floorplan financing by 2026—which will enable OTHYS to pursue larger inventory acquisitions and strategic expansion without the constraints of personal risk exposure. There can be no assurance that such alternate financing will be available on terms acceptable to us. We believe this transition is a key catalyst for unlocking the next phase of scalable growth and market leadership.

&nbsp;&nbsp;&nbsp;&nbsp;

<u>1. Purchase Discounted Boats to Wholesale</u>

A fundamental pillar of our strategy is leveraging shifts in supply and demand to acquire boats at discounted rates. Many new boat dealerships are overstocked and lack floorplan capital, forcing them to turn away used boat trade-ins and manufacturer offers, creating an opportunity for OTHYS to purchase inventory at below-market prices. Increasing purchasing power will allow OTHYS to turn inventory four to five times annually while maintaining high profit margins. After this Offering, we expect to reduce reliance on high-interest floorplan financing and secure low-interest floorplan financing, which will further enhance profitability and increase margins from the current 15–20% range. There is no assurance that we will be able to secure low-interest floorplan financing.

<u>2. Capital Expansion & Floorplan Growth</u>

By expanding floorplan financing from $10–12MM to $50MM+ by 2026, OTHYS expects to have the liquidity to hold inventory longer, eliminating premature liquidations and allowing for more strategic acquisitions. This increase in capital is intended to remove prior constraints tied to personal risk tolerance and provide the flexibility needed to secure high-value boats at optimal pricing.

<u>3. Scaling OTHYS & WeBuyBoats.com</u>

We believe that OTHYS and WeBuyBoats.com are positioned to become the "CarMax" of the used boat industry, offering a seamless, hassle-free experience for customers looking to sell their boats. Webuyboats is a website owned by OTHYS NC. Proprietary software will streamline transactions by matching buyers with sellers, while an integrated auction platform will provide additional liquidity for customers and aged inventory. These innovations will increase efficiency, improve customer experience, and drive higher transaction volumes.

<u>4. Strengthen Market Position with Dealership Acquisitions</u>

Strategic acquisitions of underperforming dealerships will further expand OTHYS' market presence. By acquiring struggling dealerships at discounted valuations, OTHYS can integrate them into its synergistic business model and position them for long-term success. This will enable us to scale operations while improving dealership profitability.

<u>5. Invest in Marina Acquisitions to Enhance Operations</u>

Acquiring marinas in key locations will strengthen OTHYS' infrastructure by consolidating operations, reducing storage and docking costs, and creating exclusive service hubs for customers. These marinas will serve as strategic assets, offering additional revenue streams through leasing, storage, and premium service options, further reinforcing OTHYS'market dominance.

<u>6. Integrated Ecosystem & Revenue Diversification</u>

The expansion of OTHYS's ecosystem will generate multiple revenue streams from each boat transaction, including financing, warranties, and hard money lending. Marine Asset Recovery (MAR) will handle repossessions for defaulted loans, seamlessly reintegrating repossessed inventory into OTHYS' sales channels. This closed-loop system is designed to ensure profitability at every stage of the transaction cycle, creating an advantage that traditional banks and independent dealerships cannot replicate.

&nbsp;&nbsp;&nbsp;&nbsp;

<u>7. Advance Technology with Enhanced CRM & Data Analytics</u>

Investments in OTHYS's proprietary CRM system will optimize sales processes, enhance decision-making, and improve overall operational efficiency. By leveraging data-driven insights, the Company can refine inventory management, improve customer targeting, and maximize return on investment. Automation and predictive analytics will further streamline workflow, creating a more agile and scalable business model.

<u>8. Expand Financing Capabilities with Hard Money Lending</u>

As traditional banks tighten lending criteria, demand for alternative financing solutions continues to grow. Azure Funding's hard money lending program will expand to capitalize on this trend, providing flexible financing options to both retail customers and industry partners. Azure Funding partners with a range of financial institutions to provide recreational loan brokerage services. These institutions include both national and specialized lenders. Current partners include: Shore Premier (Centennial Bank parent company), M&T Bank, BMO, RecFi, La Victoire (Axos Bank parent company), Medallion Bank, U.S. Bank, Grasshopper Bank, Fifth Third Bank, Bank OZK, Merrick Bank, Truist, and LightStream.

Azure Funding's conventional loan brokerage process begins when a lead is sourced through dealerships, direct borrower inquiries, or broader marketing efforts. Borrowers submit a loan application online and are promptly paired with a dedicated loan officer. The loan officer works closely with Azure Funding's in-house processing team to collect and review all supporting documentation - including income verification, identification, and collateral details. Azure then matches the borrower with the most suitable lender(s) from its partner network, based on credit profile, loan terms, and underwriting criteria. Once a lender approves the application, the loan is finalized and funded by the selected institution. Azure facilitates the transaction through closing and communicates directly with both borrower and lender throughout the process.

Azure Funding operates in a competitive market for recreational financing services. Azure Funding competes with a range of institutions, including banks, credit unions, specialty recreational lenders, and other loan brokers. Competition is generally based on factors such as approval speed, borrower experience, rate structures, and dealer relationships. Azure Funding maintains a competitive position by partnering with many of the banks that actively participate in recreational lending, and by leveraging strong dealership relationships, including OTHYS, to source and support borrower activity.

Azure Funding's customers are primarily individual buyers seeking financing for new or pre-owned recreational assets. Most borrowers fall within conventional credit parameters and are purchasing these assets for personal, non-commercial use. Loan amounts and credit profiles vary, but the majority of customers are middle- to upper-income individuals financing premium recreational vessels.

This initiative will strengthen OTHYS' ability to serve a broader range of clients while generating additional high-margin revenue.

<u>9. Scale Repossession and Asset Recovery Infrastructure</u>

Expanding Marine Asset Recovery (MAR) will enable OTHYS to handle a significantly higher volume of repossessions, with the capacity to process hundreds of recovered vessels per month. These repossessed boats will be stored, serviced, and ultimately resold through OTHYS' established channels, maximizing asset recovery values while reinforcing the company's competitive position.

<u>10. Optimize Capital Structure to Reduce Reliance on Floorplan Financing</u>

By raising additional capital, OTHYS will increase its purchasing power while reducing reliance on high-interest floorplan financing. This shift will lower financing costs, improve cash flow, and provide greater flexibility in pricing strategy. The ability to purchase inventory outright will enhance profitability and market agility, ensuring OTHYS remains ahead of industry trends.

<u>11. Expand Nationwide Broker Network and Physical Locations</u>

Scaling operations to 365+ brokers and wholesalers by 2026 will drive inventory turnover and significantly increase brokerage sales. In addition, expanding the physical footprint with new locations in high-demand regions will enhance accessibility for customers and further solidify OTHYS' presence in key markets. This will fuel wholesale, and our finance arm Azure Funding provides boat loans to customers which in turn fuels wholesale. The Company currently has no arrangements to acquire any other entities.

<u>12. Strengthen Brand and Marketing Presence</u>

Increasing marketing efforts will play a crucial role in expanding OTHYS' customer base. A combination of enhanced digital marketing, lead generation, and traditional advertising will drive brand awareness and lead conversion. Strengthening the Company's online presence and platform capabilities will further attract high-value buyers and sellers, reinforcing OTHYS' position as a premier yacht and boat dealership.

&nbsp;&nbsp;&nbsp;&nbsp;

<u>13. Increase New Boat Sales Through Strategic Acquisitions</u>

Acquiring a new boat dealership generating $65–75MM annually will establish OTHYS as a major player in the new boat sales market. This acquisition will expand relationships with manufacturers, allowing OTHYS to diversify its inventory while tapping into an additional high-margin revenue stream. We currently do not have any definitive agreements in place.

<u>14. Launch New High-Margin Services</u>

The introduction of warranty sales and auction services will create new revenue opportunities while enhancing customer retention. These offerings will provide additional financial security for buyers while enabling OTHYS to monetize inventory through multiple sales channels. By adding these services, OTHYS will further differentiate itself from competitors and strengthen its comprehensive service model.

OTHYS plans to launch a premium yacht brokerage division focused exclusively on the high-end segment of the market. This new division will feature luxury yacht inventory, experienced brokers specializing in premium transactions, and select partnerships with prestigious boat brands. By establishing a dedicated platform for high-value clients, OTHYS intends to expand its market reach, capture higher-margin sales, and further elevate its brand positioning within the marine industry.

We intend to launch our proprietary online auction platform within the next three months. This platform will serve as a centralized marketplace for banks to liquidate repossessed inventory, dealers to offload stale units or trade-ins, and for OTHYS to efficiently auction select inventory.

In parallel, we plan to integrate a full suite of support services into the platform, including shipping and logistics coordination, in-house financing through Azure Funding, and optional documentation and escrow services for buyers utilizing Azure. Additionally, the platform will offer advertising opportunities for marine-related service providers—such as insurance agents, surveyors, and transport specialists—creating a comprehensive ecosystem for boat buyers and sellers. We believe this end-to-end infrastructure will provide unmatched convenience and transparency, while positioning OTHYS as the leading digital marketplace in the marine industry.

<u>15. Marina Division</u>

Our marina division intends to make strategic marina purchases across the country, which will give our entities "free" locations to work from. We believe we can build out this model across the USA by contracting boat yards based on their current income, and then getting them permitted for 3-4 boat high dry stack facilities. This turns into passive income for the business, and would give our brokers locations to work out of and facilities for repairs, maintenance and showcase of inventory.

This is very different from our competitors model where they have very expensive brick and mortar locations that depend almost solely on boat sales to pay the mortgage. Our marinas will have 12-20% cap rates without our boat sales which we believe will make them very good investments for the Company, which will also help fuel boat sales due to there being a captive audience of customers at each location.

**Corporate Structure and Background**

In connection with our initial public offering, we will reorganize our corporate structure as follows (the "Reorganization"):

● Off the Hook Yacht Sales NC, LLC, a North Carolina limited liability company;

● Azure Funding, LLC, a North Carolina limited liability company; and

● OTH Simon Marine YF LLC, a North Carolina limited liability company.

● $600,000 paid in cash as a non-refundable deposit upon the execution of the Amended SPA; and

● the balance of $2.4 million shall be payable at the closing under the Amended SPA, which shall occur upon, among other things, the Company's registration statement on form S-1 being declared effective by the Securities and Exchange Commission; and

● the Transferred Securities will not be registered in this offering and will be locked up pursuant to lock-up agreements for 180 days following the closing of this offering.

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**Corporate Information**

Our principal executive office is located at 1701 J.E.L Wade Drive Wilmington, NC. 28401 and our telephone number is (910) 772-9277. We maintain our corporate website at www.offthehookys.com. The information contained in, or accessible through, our website does not constitute a part of this prospectus. We have included our website address in this prospectus solely as an inactive textual reference.

**Summary of Risk Factors**

*Risks Relating to Our Business*

● The yacht and boat sales industry is highly sensitive to macroeconomic conditions and may experience severe fluctuations.

● Fluctuating interest rates may adversely impact OTHYS' ability to procure financing.

● Improper handling of inventory could cause overstocking or inventory shortages.

● Our success depends to a significant extent on our manufacturers, and the loss of certain manufacturers could have an adverse effect on our business, financial condition, and results of operations.

● Boat manufacturers exercise control over our business.

● Our business, as well as the entire retail marine industry, is highly seasonal, with seasonality varying in different geographic markets.

● Other recreational activities, poor industry perception, real or perceived human health or safety risks, changing consumer attitudes and environmental conditions can adversely affect the levels of boat purchases.

● We depend on our ability to attract and retain customers.

● We depend on income from financing, insurance and extended service contracts.

● Our operations are dependent upon key personnel and team members.

● Customer trust and reputation are crucial in the yacht sales industry.

*Industry & Competitive Risks*

● We face intense competition.

● Demand in the powerboat industry is highly volatile.

● General economic conditions, particularly in the U.S., affect our industry, demand for our products and our business, and results of operations.

● We face substantial supplier and inventory acquisition risks

● Climatic events may adversely impact our operations, disrupt the business of our third party vendors on whom we rely upon for products and services, and may not be adequately covered by our insurance.

*Risks Related to Regulatory & Compliance Challenges*

● Environmental and other regulatory issues impact our operations from time to time.

● We have established online marketplaces and a failure in such online operations, security breaches and cybersecurity risks could disrupt our business and lead to reduced sales and growth prospects and reputational damage.

● We may be exposed to lawsuits from time to time, which could affect us adversely.

*Risks Related to Intellectual Property* 

● A significant portion of our intellectual property is not protected through patents or formal copyright registration. As a result, we do not have the full benefit of patent or copyright laws to prevent others from replicating our products, product candidates, and brands.

● Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and other proprietary information.

● We may need to defend ourselves against patent, copyright or trademark infringement claims, which may be time-consuming and would cause us to incur substantial costs.

*Risks Relating to This Offering*

● The Company is a holding company with no operations of its own, and it depends on its operating subsidiary for cash to fund all of its operations and expenses, including to make future dividend payments, if any.

● An active and liquid trading market for our Common Stock may not develop.

● The price of our Common Stock may be volatile, and purchasers of our Common Stock could incur substantial losses.

● A substantial portion of our total issued and outstanding shares may be sold into the market at any time. This could cause the market price of our Common Stock to drop significantly, even if our business is doing well.

● If our listing application for our Common Stock is not approved by , we will not be able to consummate the Offering and will terminate the Offering.

● The market price of our Common Stock may be highly volatile, and you could lose all or part of your investment.

● For as long as we are an emerging growth company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies.

● If you purchase our Common Stock in the Offering, you will suffer immediate and substantial dilution of your investment.

● We have broad discretion in the use of our net proceeds from the Common Stock sold in the Offering and may not use them effectively.

● We do not intend to pay dividends on our Common Stock and consequently, your only opportunity to achieve a return on your investment is if the price of our Common Stock appreciates.

● There has been no independent valuation of our stock, which means that our Common Stock may be worth less than the offering price in the offering.

● Future issuances of debt securities, which would rank senior to our Common Stock upon any bankruptcy or liquidation, and future issuances of preferred stock, which could rank senior to our Common Stock for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be able to achieve from an investment in our Common Stock.

**Implications of Being an Emerging Growth Company**

We qualify as an "emerging growth company" as defined in the federal securities laws. As an emerging growth company, we have elected to take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include:

● the requirement that we provide only two years of audited financial statements in addition to any required unaudited interim financial statements with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure;

● reduced disclosure about our executive compensation arrangements;

● an exemption from the requirement that we hold a non-binding advisory vote on executive compensation or golden parachute arrangements; and

● an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting.

We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company on the date that is the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (ii) the last day of our fiscal year following the fifth anniversary of our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC. We may choose to take advantage of some but not all of these exemptions. We have taken advantage of reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different from the information you receive from other public companies in which you hold securities.

**Implications of Being a Smaller Reporting Company**

We also qualify as a "smaller reporting company," as such term is defined in Rule 12b-2 under the Exchange Act, and to the extent we continue to qualify as a "smaller reporting company," after we cease to qualify as an "emerging growth company," certain of the exemptions available to us as an "emerging growth company" may continue to be available to us as a smaller reporting company, including: (1) not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2022 (the "Sarbanes-Oxley Act"); (2) scaled executive compensation disclosures; and (3) the ability to provide only two years of audited financial statements, instead of three years.

**Implications of Being a Controlled Company**

After the completion of this offering, Mr. Jason Ruegg, our founder, President and Chairman of the Board, will beneficially own % of our total issued and outstanding shares of common stock and total voting power, assuming the option to purchase additional shares of common stock is not exercised by the underwriter. As a result, we will be a "controlled company" as defined under the NYSE American Rules. As a "controlled company," we are permitted to elect not to comply with certain corporate governance requirements. See "*Risk Factors —We are a "controlled company" within the meaning of the NYSE American Rules and, as a result, will rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies*."

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| | |
|:---|:---|
| **THE OFFERING** | **THE OFFERING** |
| Common Stock offered by us | 5,000,000 shares. |
| Initial public offering price | It is currently estimated that the initial public offering price will be between $4.00 and $6.00 per share. |
| Common Stock outstanding immediately before the Offering | 20,000,000 shares. |
| Over-allotment option | We have granted the underwriter an option for a period of 45 days from the date of this prospectus to purchase an additional 750,000 shares of Common Stock at the initial public offering price (less underwriting discounts and commissions) to cover over-allotments, if any. |
| Common Stock to be outstanding after this Offering **<sup>(1)</sup>** | 25,000,000 shares (or 25,750,000 shares if the underwriters exercise the option to purchase additional shares from us in full). |
| Use of Proceeds | We currently intend to use the net proceeds from this offering, together with our existing cash and cash equivalents, as follows: (1) servicing our floorplan; (2) advertising and marketing of our inventory; (3) acquiring and developing a waterfront property to be used as storage, demos and repairs of our boats; (4) the repayment of a promissory note; and (5) working capital. See "*Use of Proceeds*" on page 35. |
| Lock-up agreements | We have agreed with the underwriter not to offer for sale, issue, sell, contract to sell, pledge, or otherwise dispose of any of our Common Stock or securities convertible into or exercisable or exchangeable for Common Stock, or to file or cause to be filed any registration statement with the Commission relating to any such securities, for a period of 180 days after the date of this prospectus, without the prior written consent of the underwriter. See "Underwriting" section on page 99.<br>In addition, all of our securityholders have agreed to enter into customary "lock-up" agreements with the underwriter, pursuant to which they have agreed not to offer, sell, contract to sell, pledge, or otherwise dispose of any securities of the Company for a period of 180 days following the closing date of this offering, without the prior written consent of the underwriter. Our directors and officers have agreed to a longer lock-up period of twelve (12) months from the closing date of this offering, subject to certain limited exceptions.<br>|
| Risk factors | See "Risk Factors" on page 13 for a discussion of certain factors to consider carefully before deciding to purchase any shares of our Common Stock. |
| Proposed NYSE American Symbol | We intend to apply to have our Common Stock listed on NYSE American under the symbol " ." No assurance can be given that our application will be approved. |

---

(1) The number of shares of our Common Stock to be outstanding upon completion of this offering is based on 20,000,000 shares of our Common Stock outstanding as of the date of this prospectus, and excludes:

● 4,000,000 shares of our Common Stock reserved under our 2025 Stock Option Plan (the "2025 Plan") for future issuance; and

● 250,000 shares of Common Stock issuable upon the exercise of the Underwriter's Warrants.

Unless otherwise indicated, this prospectus reflects and assumes (i) no exercise by the underwriter of the underwriters of its over-allotment option and (ii) no issuance or exercise of the stock options described above.

**SUMMARY FINANCIAL DATA**

The following table summarizes our combined financial data for the periods indicated. We have derived the following summary of our combined statements of operations data for the fiscal years ended December 31, 2024 and 2023, and our combined balance sheets data as of December 31, 2024 and 2023, from our audited combined financial statements included elsewhere in this prospectus, and our unaudited condensed combined balance sheet as of March 31, 2025 and unaudited combined statements of operations data for the three months ended March 31, 2025 and 2024, and unaudited condensed combined balance sheet as of March 31, 2025. You should read this data together with our financial statements and related notes included elsewhere in this prospectus and the information under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations." The summary financial data included in this section are not intended to replace the financial statements and related notes included elsewhere in this prospectus and are qualified in their entirety by those financial statements and related notes. Our historical results are not necessarily indicative of our future results.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended**<br> **December 31, 2024 (As restated)** | **Year Ended**<br> **December 31, 2023** | **Three Months Ended**<br> **March 31, 2025** | **Three Months Ended**<br> **March 31, 2024** |
| **Summary Statements of Operations Data** |  |  |  |  |
| Revenue | $98995562 | $91839555 | $27238782 | $20831849 |
| Cost of revenue: | (90214652) | (82693017) | (24562153) | (18738526) |
| Total operating expenses | (6096987) | (6108249) | (1856006) | (1366184) |
| Income from operations | 2683923 | 3038289 | 820623 | 727139 |
| Other (expense) income | (69778) | (67837) | 14449 | (88421) |
| Interest expense | (1622461) | (1674949) | (545298) | (406246) |
| Total other expense | (1692239) | (1742786) | (530849) | (494667) |
| Net Income | 991684 | 1295503 | 289774 | 232472 |
| **Unaudited Pro Forma Income Tax (C-corporation basis)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pro forma income tax provision | $208254 | $272056 | $60853 | $48819 |
| &nbsp;&nbsp;&nbsp;Pro forma historical net income | $783430 | $1023447 | $228921 | $183653 |
| &nbsp;&nbsp;&nbsp;Pro forma net income per share of common stock, basic and diluted | $0.04 | $0.05 | $0.01 | $0.01 |
| &nbsp;&nbsp;&nbsp;Shares used in computing pro forma net income per share (1) | 20000000 | 20000000 | 20000000 | 20000000 |

---

(1) Unaudited
 pro forma basic and diluted net income per share is computed by dividing pro forma net income, which reflects an assumed provision
 for income taxes as if we were a taxable corporation for all periods presented, by the shares of common stock issued following our
 Reorganization , including
 the conversion of each of the operating subsidiaries from a limited liability company to a corporation for tax purpose. Such shares
 are assumed to be outstanding for all periods presented. There are no potentially dilutive securities.

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of March 31, 2025** | **As of March 31, 2025** |
|  | | | ***Pro Forma*** |
|  |<br>**Actual** |<br>***Pro Forma (1)*** | **as Adjusted (2)** |
|  | **(audited)** | **(unaudited)** | **(unaudited)** |
| **Summary Balance Sheet Data** |  |  |  |
| Cash and cash equivalents | $934272 | $934272 | $20027012 |
| Total assets | $33803945 | $33803945 | $52896685 |
| Total current liabilities | $31864036 | $31864036 | $28964036 |
| Total non-current liabilities | $1274651 | $1274651 | $1274651 |
| Total liabilities | $33138687 | $33138687 | $30238687 |
| Common Stock | 20000 | 20000 | 25000 |
| Additional paid-in capital | $2774944 | $645258 | $22632998 |
| Retained earnings | (2129686) |  |  |
| Total members' deficit | $665258 | $665258 | $22657998 |
| Total liabilities and members' deficit | $33803945 | $33803945 | $52896685 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The as adjusted balance sheet data in the table
 above also reflects the reclassification of accumulated retained earnings of the predecessor
 entities of $2,129,686 to additional paid-in capital in connection with the Reorganization,
 including the conversion of each of the operating subsidiaries from a limited liability company
 to a corporation for tax purposes. This reclassification is presented as if the accumulated
 retained earnings had been distributed to the owners and immediately contributed back to
 us as additional paid-in capital.

(2) The
 as adjusted balance sheet data in the table above reflects the sale and issuance by us of
 shares of our Common Stock in this offering, based upon the assumed initial public offering
 price of $5.00 per share, the midpoint of the price range set forth on the cover page of
 this prospectus, after deducting the underwriting discounts and commissions and estimated
 offering expenses payable by us, the repayment of approximately $2,900,000 of outstanding
 working capital indebtedness as describe under "Use of Proceeds".

**RISK FACTORS**

*You should carefully consider the risks and uncertainties described below and the other information in this prospectus, including our financial statements and related notes appearing elsewhere in this prospectus and in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations," before deciding whether to invest in our Common Stock. Our business, financial condition, results of operations or prospects could be materially and adversely affected if any of these risks occurs, and as a result, the market price of our Common Stock could decline and you could lose all or part of your investment. This prospectus also contains forward-looking statements that involve risks and uncertainties. See "Special Note Regarding Forward-Looking Statements." Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors, including those set forth below.*

**Risks Relating to Our Business**

***The yacht and boat sales industry is highly sensitive to macroeconomic conditions and may experience severe fluctuations*.**

The yacht and boat sales industry is highly sensitive to macroeconomic conditions, including GDP growth, interest rates, consumer confidence, and discretionary spending. During economic downturns, consumers may postpone or forego luxury purchases like yachts and boats, which could result in lower sales and reduced profit margins. Similarly, fluctuations in financial markets, employment levels, and inflation rates may influence consumer behavior and financing availability. Higher interest rates or tightened credit markets could reduce the affordability of boat purchases, especially for discretionary or financed transactions, leading to lower overall demand for new and pre-owned vessels. Similarly, rising inflation or economic uncertainty may lead consumers to delay or reduce spending on high-ticket leisure items such as boats.

***Fluctuating interest rates may adversely impact OTHYS' ability to procure financing.***

Many boat purchases are financed through loans, making interest rate movements a key factor in affordability. Rising interest rates increase borrowing costs for customers, potentially reducing demand for financed purchases. Additionally, changes in bank lending standards and credit availability could impact OTHYS's financing operations through Azure Funding, affecting loan approvals and customer affordability.

***Improper handling of inventory could cause overstocking or inventory shortages.***

Managing inventory is critical to our business model. Holding excess inventory can tie up capital and increase carrying costs, while inadequate liquidity may limit the ability to take advantage of high-value acquisitions. OTHYS actively monitors market conditions to balance inventory levels, optimize turnover, and maintain financial flexibility. However, if demand fluctuates unexpectedly, there is a risk of overstocking or inventory shortages.

***Our success depends to a significant extent on our manufacturers, and the loss of certain manufacturers could have an adverse effect on our business, financial condition, and results of operations.***

We depend on our manufacturers for the sale of new boats. Sales of new boats from our two brands represents approximately 10% of total sales for the fiscal years ended December 2024 and 2023, respectively. Any adverse change in the reputation, product development efforts, technological advancement, manufacturing capabilities, supply chain and third-party suppliers and financial condition of our manufacturers and their respective brands, would have a substantial adverse impact on our business. Any difficulties encountered by our manufacturers resulting from economic, financial, or other factors could also adversely affect the quality and amount of new boats and products that they are able to supply to us and the services and support they provide to us.

Additionally, any interruption or discontinuance of the operations of our manufacturers, including due to, supply chain disruptions or shortages or bankruptcy or insolvency, could also cause us to experience shortfalls, disruptions, or delays with respect to new boats and inventory. During the course of the pandemic, a number of our manufacturers faced inventory shortages due to a combination of these facts as well as high demand. We also enter into renewable annual dealer agreements with manufacturers, and there is no guarantee that we will be able to renew such dealer agreements in the future. We may not be able to easily replace the loss of certain manufacturers or brands, including at the necessary quantity, quality or price, and the loss of certain manufacturers or brands may therefore have an adverse material effect on our business, results of operations and financial condition.

***Boat manufacturers exercise control over our business.***

We depend on our dealer agreements, which generally provide for renewable, one-year terms. Through dealer agreements, boat manufacturers exercise control over their dealers, restrict them to specified locations and retain approval rights over changes in management and ownership, among other things. The continuation of our dealer agreements with most manufacturers depends upon, among other things, our achieving stated performance goals for customer satisfaction ratings and market share penetration in the market served by the applicable marine retailer. Failure to meet performance goals and other conditions set forth in any existing or new dealer agreement could have various consequences, including the following:

● the
 termination or nonrenewal of the dealer agreement;

● the
 imposition of additional conditions in subsequent dealer agreements;

● limitations
 on boat inventory allocations;

● reductions
 in reimbursement rates for warranty work performed by the dealer;

● loss
 of certain manufacturer-to-dealer incentives;

● denial
 of approval of future acquisitions; or

● the
 loss of exclusive rights to sell in the geographic territory.

These events could have a material adverse effect on our product availability, competitive position and financial performance.

***Manufacturer recall campaigns could adversely affect our business.***

Manufacturer recall campaigns could adversely affect our new and pre-owned boat sales or customer residual trade-in valuations, could cause us to temporarily remove boats from our inventory, could force us to incur increased costs and could expose us to litigation and adverse publicity related to the sale of recalled boats, which could have a material adverse effect on our business, results of operations, financial condition and cash flows.

***Our business, as well as the entire retail marine industry, is highly seasonal, with seasonality varying in different geographic markets.***

Our business, along with the broader retail marine industry, is highly seasonal. Sales activity for both new and pre-owned boats generally peak during the spring and summer months, particularly in northern markets where boating is limited to warmer seasons. Conversely, sales tend to slow significantly during the fall and winter months, especially in colder climates. This seasonal variation affects not only transaction volume but also inventory turnover, revenue recognition, and cash flow.

Geographic markets experience seasonality differently. For example, southern coastal markets such as Florida and parts of the Gulf Coast often maintain year-round boating activity and sales, while northern regions such as the Northeast or Great Lakes are subject to more pronounced seasonal slowdowns. As we continue to expand our footprint nationally, we may experience increased variability in our operational and financial performance due to regional differences in seasonality.

This seasonality can impact our ability to forecast revenue and plan inventory purchases, staffing levels, and marketing expenditures. Additionally, seasonal fluctuations may become more pronounced during periods of economic uncertainty or adverse weather conditions, which could further reduce consumer activity and discretionary spending during peak sales windows.

***The failure to receive rebates and other manufacturer incentives on inventory purchases or retail sales could substantially reduce our margins.***

We rely on manufacturers' programs that provide incentives for dealers to purchase and sell particular boat makes and models or for consumers to buy particular boat makes or models. Any eliminations, reductions, limitations or other changes relating to rebate or incentive programs that have the effect of reducing the benefits we receive, whether relating to the ability of manufacturers to pay or our ability to qualify for such incentive programs, could increase the effective cost of our boat purchases, reduce our margins and competitive position and have a material adverse effect on our financial performance.

***Other recreational activities, poor industry perception, real or perceived human health or safety risks, changing consumer attitudes and environmental conditions can adversely affect the levels of boat purchases.***

Demand for our products can be adversely affected by competition from other activities that occupy consumers' time, including other forms of recreation as well as religious, cultural and community activities. In addition, real or perceived human health or safety risks from engaging in outdoor activities generally or boating activities specifically could deter consumers from purchasing our products. Local environmental conditions in the areas in which we operate dealerships could also adversely affect the levels of boat purchases, including adverse weather conditions or natural disasters. Changing trends and attitudes toward large discretionary purchases on the part of younger consumers in particular, who may prefer to share or borrow a boat rather than incur the expense of ownership, may impact our future sales. Further, as a seller of high-end consumer products, we must compete for discretionary spending with a wide variety of other recreational activities and consumer purchases. In addition, perceived hassles of boat ownership and customer service and customer education throughout the retail boat industry, which has traditionally been perceived to be relatively poor, represent impediments to boat purchases. We may attempt to shift the focus or product mix in response to changing consumer sentiments, but there is no guarantee that we will be successful.

***Increases in fuel prices may adversely affect our business.***

***The availability of boat insurance is critical to our success.***

The availability of boat insurance is critical to our success. The ability of our customers to secure reasonably affordable boat insurance that meets the requirements of lenders financing their purchases is essential to closing transactions in both our retail and wholesale channels. Historically, such insurance has been readily accessible and competitively priced.

However, as a severe storm approaches land—particularly in coastal regions—insurers often impose temporary underwriting moratoriums, halting the issuance of new policies. This can delay or derail transactions that are pending funding or delivery, particularly in peak sales periods. In addition, increased storm activity and broader climate-related risks have led to higher insurance premiums and more restrictive underwriting in certain markets, which may impact customers' purchasing decisions or disqualify some buyers from obtaining financing.

If the cost or availability of boat insurance were to deteriorate significantly, either regionally or industry-wide, it could materially reduce the demand for boats and adversely impact our sales volume, financing operations through Azure Funding, and overall business performance.

***We depend on our ability to attract and retain customers.***

Our future success depends in large part upon our ability to attract and retain customers for our boat sales, repair and maintenance services, parts and accessories and finance & insurance products. The extent to which we achieve growth in our customer base and retain existing customers materially influences our profitability. Any number of factors could affect our ability to grow and maintain our customer base. These factors include consumer preferences, the frequency with which customers utilize our products, repair and maintenance services and finance & insurance products, general economic conditions, our ability to maintain our dealership locations, weather conditions, the availability of alternative services, protection plans, products and resources, significant increases in gasoline prices, the disposable income of consumers available for discretionary expenditures and the external perception of our brands. Any significant decline in our customer base, or the usage of our services, protection plans or products by our customers could have a material adverse effect on our business, financial condition and results of operations.

***We depend on income from financing, insurance and extended service contracts.***

A portion of our income results from referral fees derived from the placement or marketing of various finance & insurance products, consisting of customer financing, insurance products and extended service contracts, the most significant component of which is the participation and other fees resulting from our sale of customer financing contracts.

The availability of financing for our boat purchasers and the level of participation and other fees we receive in connection with such financing depend on the particular agreement between us and the lender and the current interest rate environment. Lenders may impose terms in their boat financing arrangements with us that may be unfavorable to us or our customers, resulting in reduced demand for our customer financing programs and lower participation and other fees. Laws or regulations may be enacted nationally or locally which could result in fees from lenders being eliminated or reduced, materially impacting our operating results. If customer financing becomes more difficult to secure, it may adversely impact our business.

Changes, including the lengthening of manufacturer warranties, may reduce our ability to offer and sell extended service contracts which may have a material adverse impact on our ability to sell finance and insurance products. Moreover, these products are subject to complex federal and state laws and regulations. There can be no assurance that regulatory authorities in the jurisdictions in which these products are offered will not seek to regulate or restrict these products. Failure to comply with applicable laws and regulations could result in fines or other penalties including orders by state regulators to discontinue sales of the warranty products in one or more jurisdictions. Such a result could materially and adversely affect our business, results of operations and financial condition.

Although boat dealers are generally excluded from regulatory oversight under the Dodd-Frank Wall Street Reform and Consumer Protection Act, future changes in law could lead to additional, indirect regulation of boat dealers through its regulation of other financial institutions which provide such financing to our customers.

If interest rates rise, the fees we receive in connection with the financing may be limited or reduced as customers become more interest rate sensitive and the spreads that we are able to charge are compressed. The reduction of profit margins on sales of finance & insurance products or the lack of demand for or the unavailability of these products could have a material adverse effect on our operating margins.

***Our operations are dependent upon key personnel and team members.***

Our success depends, in large part, upon our ability to attract, train, and retain qualified team members and executive officers, as well as the continuing efforts and abilities of team members and executive officers. Although we have employment agreements with certain of our executive officers and management succession plans, we cannot ensure that these or other executive personnel and team members will remain with us, or that our succession planning will adequately mitigate the risk associated with key personnel transitions. Expanding our operations may require us to add additional executive personnel and team members in the future. As a result of our decentralized operating strategy, we also rely on the management teams of our marine retailers. In addition, we likely will depend on the senior management of any significant businesses we acquire in the future. The loss of the services of one or more key employees before we are able to attract and retain qualified replacement personnel could adversely affect our business. Additionally, our ability to manage our personnel costs and operating expenses is subject to external factors such as unemployment levels, prevailing wage rates, healthcare and other benefit costs, changing demographics and our reputation and relevance within the labor markets where we are located. Increases in the prevailing wage rates due to competitive market pressures or other factors could increase our personnel costs and operating expenses and have a material adverse effect on our business.

***Customer trust and reputation are crucial in the yacht sales industry.***

Customer trust and reputation are crucial in the yacht sales industry. Negative customer experiences, disputes over financing terms, warranty claims, or poor service execution could harm the OTHYS brand. The Company prioritizes transparency, high service standards, and long-term customer relationships to mitigate reputational risks.

***If we cannot dispose of pre-owned boats acquired through our trade-in or direct purchase processes at prices that allow us to recover its costs, our profitability will be adversely affected.***

The resale values of any pre-owned boats that we acquire through trade-ins or direct purchase may be lower than our estimates, which are based on expected retail sales prices. If the resale value of the pre-owned boats we acquire is lower than our estimates and/or we are not able to resell them timely or at all, it could have a material adverse effect on our business, results of operations and financial condition.

Additionally, certain pre-owned boats or other vehicles that we acquire through trade-ins may fail to meet our retail quality standards. Instead, we sell these units through a wholesale process. If the prices that we receive for our pre-owned boats sold in this process are not sufficient to cover the prices paid or credit given at trade-in for such pre-owned boats, it could have a material adverse effect on our business, results of operations and financial condition.

***We rely on Floorplan Financing***

OTHYS relies heavily on floorplan financing arrangements to acquire, hold, and sell inventory across its wholesale, brokerage, and new boat sales operations. These credit facilities allow us to fund the purchase of boats before they are sold to end customers, and are essential to maintaining a broad and competitive selection of inventory.

However, a floorplan financing cap of approximately $27 million under our existing arrangement with Red Oak Inventory Finance ("Red Oak") constrains our ability to finance our inventory. This limitation restricts our ability to make opportunistic acquisitions, and may, at times, force us to sell inventory prematurely to free up capacity, potentially resulting in reduced margins or missed sales opportunities. The cap also limits our ability to pursue new or larger transactions that require greater floorplan availability.

Any disruption to our access to floorplan financing—whether due to changes in lender underwriting criteria, rising interest rates, reductions in credit limits, or a tightening of capital markets—could materially impair our ability to stock sufficient inventory. This, in turn, may reduce sales volume, limit customer choice, and negatively affect our revenue and profitability.

As interest rates rise, the cost of carrying inventory through floorplan facilities also increases, which can compress margins or force changes to our pricing strategy. Additionally, if lenders impose more restrictive terms, require increased collateral, or reintroduce or increase personal guarantees, it may limit our ability to scale or capitalize on opportunistic bulk purchases.

While we have entered into negotiations with Red Oak to expand our combined floorplan capacity to $40 million, this increase is based on our current financial condition and is not guaranteed. We believe that the proceeds from this offering, together with the increased floorplan capacity currently under negotiation, will enable us to achieve approximately $50 million in total inventory purchasing capacity, which would enhance our operational flexibility and support future growth. However, our ability to do so is dependent on continued lender confidence in our business model, credit profile, and market conditions. If we are unable to secure such increased capacity, or if our financial condition deteriorates, we may continue to face constraints that adversely impact our ability to execute our business strategy, manage inventory levels effectively, or capitalize on market opportunities.

**Industry & Competitive Risks**

***We face intense competition.***

We operate in a highly competitive and fragmented environment. In addition to facing competition generally from recreational businesses seeking to attract consumers' leisure time and discretionary spending dollars, the recreational boat industry itself is highly fragmented, resulting in intense competition for customers, quality products, boat show space and suitable dealership locations. We rely to a certain extent on boat shows to generate sales. Our inability to participate in boat shows in our existing or targeted markets, including due to cancellations of boat shows, could have a material adverse effect on our business, financial condition and results of operations.

The yacht and boat sales industry is highly competitive, with OTHYS competing against large national dealerships, independent brokers, online marketplaces, and manufacturers selling directly to consumers. Some competitors have greater financial resources, larger inventories, or extensive marketing budgets, which could impact our market share.

Additionally, online sales platforms have transformed the industry, increasing competition from digital marketplaces. To remain competitive, OTHYS continuously invests in technology, customer service, and digital marketing strategies. However, our inability to compete effectively with existing or potential competitors could have a material adverse effect on our business, financial condition and results of operations.

***Failure to implement strategies to enhance our performance could have a material adverse effect on our business and financial condition.***

We are increasing our efforts to grow our distribution, repair and maintenance services, parts and accessories, and financing and insurance businesses to better serve our customers and thereby increase revenue and improve profitability as a result of these comparatively higher margin businesses. These efforts are designed to increase our revenue and reduce our dependence on the sale of new and pre-owned boats. In addition, we are pursuing strategic acquisitions to capitalize upon the consolidation opportunities in the highly fragmented recreational boat dealer industry by acquiring additional marine retailers and related operations and improving their performance and profitability through the implementation of our operating strategies. These business initiatives have required, and will continue to require, us to add personnel, invest capital, enter businesses or geographic regions in which we do not have extensive experience and encounter substantial competition. As a result, our strategies to enhance our performance may not be successful and we may increase our expenses or write off or impair such investments if not successful.

***Demand in the powerboat industry is highly volatile.***

Volatility of demand in the powerboat industry, especially for recreational powerboats and electric powerboats, may materially and adversely affect our business, prospects, operating results and financial condition. The markets in which we will be competing have been subject to considerable volatility in demand in recent periods. Demand for recreational powerboat and electric powerboat sales depends to a large extent on general, economic and social conditions in a given market. Historically, sales of recreational powerboats decrease during economic downturns. We have fewer financial resources than more established powerboat manufacturers to withstand adverse changes in the market and disruptions in demand.

***General economic conditions, particularly in the U.S., affect our industry, demand for our products and our business, and results of operations****.*

Demand for premium boat brands has been significantly influenced by weak economic conditions, low consumer confidence, high unemployment, and increased market volatility worldwide, especially in the U.S. In times of economic uncertainty and contraction, consumers tend to have less discretionary income and tend to defer or avoid expenditures for discretionary items, such as our products. Sales of our products are highly sensitive to personal discretionary spending levels. Our business is cyclical in nature and its success is impacted by economic conditions, the overall level of consumer confidence and discretionary income levels. Any substantial deterioration in general economic conditions that diminishes consumer confidence or discretionary income may reduce our sales and materially adversely affect our business, financial condition and results of operations. We cannot predict the duration or strength of an economic recovery, either in the U.S. or in the specific markets where we sell our products. Corporate restructurings, layoffs, declines in the value of investments and residential real estate, higher gas prices, higher interest rates, and increases in federal and state taxation may each materially adversely affect our business, financial condition, and results of operations.

Consumers often finance purchases of our products. Although consumer credit markets have improved, consumer credit market conditions continue to influence demand, especially for boats, and may continue to do so. There continue to be fewer lenders, tighter underwriting and loan approval criteria, and greater down payment requirements than in the past. If credit conditions worsen, and adversely affect the ability of consumers to finance potential purchases at acceptable terms and interest rates, it could result in a decrease in the sales of our products.

***Policy changes affecting international trade could adversely impact the demand for our products and our competitive position.***

Changes in government policies on foreign trade and investment can affect the demand for our products and services, impact the competitive position of our products and services or prevent us from being able to sell products and services in certain countries. The implementation of more restrictive trade policies, such as more detailed inspections, higher tariffs, import or export licensing requirements, economic sanctions, anti-boycott laws, exchange controls or new barriers to entry could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, the Trump Administration has announced tariffs on certain imports from Canada, Mexico and the EU, among others, that could affect the demand for our products. Such tariffs and any retaliatory tariffs (including those announced by China, Canada and Mexico in March 2025) may put upwards pressure on prices in other jurisdictions from which we purchase product components, which could reduce our ability to offer competitive pricing to potential customers. We cannot predict what changes to trade policy will be made by the Trump Administration, the U.S. Congress or other governments, including whether existing tariff policies will be maintained or modified or whether the entry into new bilateral or multilateral trade agreements will occur, nor can we predict the effects that any such changes would have on our business or the global economy. Changes in U.S. trade policy, or threat of such changes, have resulted and could again result in reactions from U.S. trading partners, including adopting responsive trade policies making it more difficult or costly for us to export our products or import products or product components from countries where we currently purchase products or product components or sell products or services. Such changes, or threatened changes, to trade policy or in laws and policies governing foreign trade, and any resulting negative sentiments towards the United States as a result of such changes, could materially and adversely affect our business, financial condition, results of operations and liquidity.

***We face substantial supplier and inventory acquisition risks.***

OTHYS sources boats from private sellers, dealers, repossession auctions, and trade-ins. Disruptions in any of these supply channels—such as manufacturer production delays, trade-in slowdowns, or lender policy changes affecting repossessions—could impact our ability to maintain an optimal inventory. Pricing volatility or limited availability in certain boat categories could also affect profit margins.

In addition, we rely on certain exclusive dealer agreements to source boats from specific manufacturers. For example, Off the Hook Yacht Sales NC, LLC is the exclusive dealer for Yellowfin Yachts LLC ("Yellowfin") from Miami to Islamorada and in North Carolina, and the exclusive dealer for NT Manufacturing, LLC ("Nor-Tech") in North and South Carolina. These dealer agreements are renewed on a year-to-year basis and may be terminated by the manufacturers at any time. If any of these agreements are not renewed or are terminated, we could lose access to key products, which would have a material adverse effect on our business, results of operations, and financial condition.

***We face marine asset and repossession risks***

Our Marine Asset Recovery (MAR) division provides a valuable inventory source through the acquisition and resale of repossessed boats. However, changes in lender policies, consumer protection laws, or state and federal regulations could limit our ability to access or efficiently process these assets.

Repossession practices vary by jurisdiction and may involve complex legal procedures, delays, or disputes. Legal challenges from borrowers or increased regulatory scrutiny could lead to higher costs, reputational risk, or operational slowdowns. Additionally, a shift in lender behavior—such as retaining repossessions in-house—could reduce the volume of available inventory. While MAR remains an important part of our supply chain, it is subject to legal and regulatory risks that could impact its future performance.

***Climatic events may adversely impact our operations, disrupt the business of our third party vendors on whom we rely upon for products and services, and may not be adequately covered by our insurance.***

Climatic events in the areas where we operate have caused, and future climatic events may cause, disruptions and in some cases delays or suspensions in our operations that adversely impacted our business. For example, the physical effects of unseasonably wet weather, drought conditions, extended periods of below freezing weather, tropical storms, hurricanes, flooding, or other natural disasters have forced and may in the future force boating areas to close or render boating dangerous. This has resulted in and, in the future, could result in reduced customer demand for our products and services. One or more of these climatic events has in the past and may in the future result in physical damage to, or closure of, one or more of our facilities, and disruption or reduction in the availability of products. Concerns regarding global changes in climate could also adversely affect the levels of boat purchases.

In addition, the physical effects of climatic events, including wintry conditions, increased frequency and severity of tropical storms or hurricanes, tornadoes, fires, floods and other natural disasters, as well as sea level rise, could result in the disruption of our operations and/or third party supply chain vendors on whom we rely upon for products and services, including boat deliveries from manufacturers, damage to or inadvertent releases from fueling stations, or damage to or the loss of our boat inventories and facilities as has been the case when the Southeast and Gulf Coast regions and other markets have been affected by hurricanes such as Hurricane Helene, and Hurricane Milton in 2024. Such disruptions in our supply chain could damage our on-site inventory at our locations, result in remedial liability or administrative penalties, or cause serious limitations or delays in the operations of our locations. We maintain hurricane and casualty insurance, subject to deductibles, but such coverage may become significantly more expensive or impossible to procure in the future. Our planning for normal climatic variation, insurance programs and emergency recovery plans may inadequately mitigate the effects of such climatic conditions, and not all such effects can be predicted, eliminated, mitigated, or insured against. Accordingly, while we traditionally maintain property and casualty insurance coverage for damage caused by climatic events such as severe weather or other natural disasters, there can be no assurance that such insurance coverage is adequate to cover losses that we may sustain as a result thereof or that we will be able to procure coverage on commercially reasonable terms for such events in the future.

***We face expansion and acquisition risks***

OTHYS's growth strategy includes acquiring dealerships, expanding its broker network, and investing in marina properties. While these initiatives support long-term expansion, they also introduce risks related to:

● Integration of acquired businesses and teams

● Unexpected costs or operational inefficiencies

● Challenges in scaling systems, logistics, and customer service

To manage these risks, OTHYS conducts thorough due diligence and phased growth strategies to ensure successful expansion.

**Risks Related to Regulatory & Compliance Challenges**

***Environmental and other regulatory issues impact our operations from time to time.***

Our operations are subject to stringent federal, state and local laws and regulations governing such matters as finance & insurance, consumer protection, consumer privacy, escheatment, anti-money laundering, releases, discharges and emissions or other releases into the environment and environmental protection, human health and safety, and employment practices, including wage and hour and anti-discrimination legal requirements. These laws and regulations affect many aspects of our operations, such as requiring the acquisition and renewal of permits, licenses and other governmental approvals to conduct regulated activities, including the retail sale of recreational boats, restricting the manner in which we use, handle, store, recycle, transport and dispose of discarded substances and wastes, responding to and performing investigatory, remedial and corrective actions with respect to any discharges and emissions or other release of regulated substances, requiring capital and operating expenditures to construct, maintain and upgrade pollution control and containment equipment and facilities, imposing specific human health and safety criteria addressing worker protection, and imposing liabilities for failure to comply with applicable environmental or other legal requirements, pollution incidents or inappropriate payment or treatment of our workers with respect to our operations. The failure to satisfy those and other legal requirements could have a material adverse effect on our business, financial condition, and results of operations. In addition, failure to comply with those and other legal requirements, or with U.S. trade sanctions, the U.S. Foreign Corrupt Practices Act and other applicable laws or regulations could result in the assessment of damages, the imposition of sanctions including monetary penalties, changes to our processes, or a delay, suspension or cessation of our operations, as well as damage to our image and reputation, all of which could have a material adverse effect on our business, results of operations and financial condition.

Numerous governmental agencies, including OSHA, the EPA and similar federal agencies as well as analogous state and local agencies regulate and maintain enforcement authority over the operation of our locations, repair facilities, and other operations, with respect to matters such as consumer protection, human safety and environmental protection, including any contamination of or releases into ambient air, surficial and subsurface soils, surface water and groundwater. Marine engine manufacturers are subject to emissions standards imposed under the CAA, and the EPA has enacted a number of legal requirements imposing more stringent emissions standards for two-cycle, gasoline outboard marine engines. It is possible that regulatory bodies such as the EPA may impose more stringent emissions standards in the future for marine engines, including with respect to recreational use. Any increased costs of those manufacturers producing engines resulting from current or future EPA standards could be passed on to dealers in the retail recreational boat industry, such as ourselves, or could result in the inability of, or potential unforeseen delays by, these manufacturers to manufacture and make timely delivery of recreational boats to such dealers, which developments could have a material adverse effect on our business, results of operations and financial condition. Moreover, we cannot guarantee that would be able to pass any such increased costs on to our customers, and such increased costs could deter customer interest and otherwise adversely affect boating sales.

As with companies in the marine retail industry generally, and parts and service operations in particular, our business involves the use, handling, storage, transportation and contracting for recycling or disposal of waste materials, including hazardous or toxic substances and wastes as well as environmentally sensitive materials, such as motor oil, waste motor oil and filters, transmission fluid, antifreeze, freon, waste paint and lacquer thinner, batteries, solvents, lubricants, degreasing agents, gasoline, and diesel fuels. Laws and regulations regarding the prevention of pollution or remediation of environmental contamination generally apply regardless of whether we lease or purchase the land and facilities. Additionally, certain of our locations and/or repair facilities utilize USTs and ASTs, primarily for storing and dispensing petroleum-based products. Storage tanks in the United States are generally subject to financial responsibility requirements and testing, containment, upgrading and removal requirements under the RCRA, and its state law counterparts, as well as federal, state and local legal standards relating to investigation and remediation of contaminated soils, surface water and groundwater resulting from leaking tanks and associated inground lifts. We also may be subject to civil liability to third parties for remediation costs or other damages if our owned or operated tanks leak or leakage migrates onto the property of others.

We are subject to regulation by federal, state, and local authorities establishing investigatory, remedial, human health and environmental quality standards and imposing liability related thereto, which liabilities may include sanctions, including monetary penalties for violations of those standards. Certain of our locations and/or repair facility properties have been operated in the past by third parties whose use, handling and disposal of petroleum-based products or wastes were not under our control. Given the strict liability nature of environmental laws, we may be liable for the remediation of such past releases notwithstanding that our operations did not cause or contribute to the contamination.

We also are subject to laws, ordinances, and regulations governing investigation and remediation of contamination at facilities we operate or to which we send hazardous or toxic substances or wastes for treatment, recycling, or disposal. In particular, CERCLA, also known as the Superfund law, and analogous state laws, impose strict joint and several liability on generators, transporters, disposers and arrangers of hazardous substances at sites where hazardous substance releases have occurred or are threatening to occur.

A majority of states have adopted Superfund laws comparable to and, in some cases, more stringent than CERCLA. If we were to be found to be a responsible party under CERCLA or a similar state statute, we could be held liable for all investigative and remedial costs associated with addressing such contamination as well as for natural resource damages. In addition, claims alleging personal injury or property damage may be brought against us as a result of alleged exposure to hazardous substances resulting from our operations. Moreover, certain of our locations are located on waterways that are subject to federal laws, including the Clean Water Act and the OPA, as well as analogous state laws regulating navigable waters, oil pollution (including prevention and cleanup of the same), adverse impacts to fish and wildlife, and other matters. For example, under the OPA, owners and operators of vessels and onshore facilities may be subject to liability for removal costs and damages arising from an oil spill in waters of the United States.

We could be required to conduct remediation in the future in accordance with applicable state and federal standards in the cleanup of petroleum hydrocarbons or other substances or wastes released on, under or from properties owned or leased by us, including some of our properties that were previously used as gasoline service stations. For example, we are performing soil and groundwater monitoring activities as required by applicable state and federal standards. We may also be required in the future to remove USTs, ASTs and inground lifts containing petroleum-based products and hazardous or toxic substances or wastes should they represent a risk of release or threatened release into the environment. Historically, our costs of compliance with these investigatory, remedial and monitoring requirements have not had a material adverse effect on our results of operations; however, there can be no assurance that such costs will not be material in the future or that such future compliance will not have a material adverse effect on our business, results of operation and financial condition. We also may have additional storage tank liability insurance and other insurance coverage with respect to pollution-related liabilities where available, but such coverages may be insufficient to address such liabilities. Environmental laws and regulations are comprehensive and subject to frequent change. Compliance with amended, new, or more stringent laws or regulations, more strict interpretations of existing laws, or the future discovery of environmental conditions may require additional expenditures by us, and such expenditures may be material.

Additionally, certain states have imposed legal requirements or are considering the imposition of such requirements that would obligate buyers and/or operators of recreational boats to obtain a license in order to operate such boats. These requirements could discourage potential buyers of recreational boats, thereby limiting future sales and adversely affecting our business, financial condition, and results of operations.

Furthermore, the Patient Protection and Affordable Care Act increased our annual employee health care costs that we fund, and significantly increased our cost of compliance and compliance risk related to offering health care benefits.

Moreover, adverse changes in labor policy could lead to increased unionization efforts, which could lead to higher labor costs, disrupt our locations operations, and adversely affect our business, results of operations and financial condition.

***We have established online marketplaces and a failure in such online operations, security breaches and cybersecurity risks could disrupt our business and lead to reduced sales and growth prospects and reputational damage.***

Consumers are increasingly embracing shopping online and through mobile commerce applications. However, consumer preferences and e-commerce buying trends could change, and we may be vulnerable to additional risks and uncertainties associated with online sales, including rapid changes in technology, website downtime and other technical failures, security breaches, cyber-attacks, consumer privacy concerns, changes in state tax regimes and government regulation of internet activities. Online marketplaces may also increase our access to sensitive, confidential or personal data or information that is subject to data privacy and information security laws and regulations. Our failure to successfully respond to these risks and uncertainties could reduce our online sales, increase our costs, diminish our growth prospects, damage our brands, and subject us to regulatory fines or investigations, which could negatively impact our operations and stock price. In addition, there is no guarantee that we will be able to successfully expand our online platforms. Our competitors may have e-commerce businesses that are substantially larger and more developed than ours, which could place us at a competitive disadvantage. If we are unable to expand our online platforms, our growth plans could suffer, and the price of our Common Stock could decline.

As OTHYS expands its digital platforms, CRM system, and financing operations, protecting sensitive customer and transaction data becomes increasingly critical. A cyberattack, data breach, or system failure could disrupt operations and lead to financial losses, regulatory scrutiny, or reputational harm. We believe OTHYS invests in strong cybersecurity measures and risk management protocols to safeguard its technology infrastructure.

***We may be exposed to lawsuits from time to time, which could affect us adversely.***

As a company operating in boat sales, financing, and repossession, OTHYS may be exposed to potential lawsuits, contract disputes, and regulatory enforcement actions. Legal matters related to consumer protection, financing terms, repossession practices, or employment issues could arise. While we believe that the company maintains strong legal compliance measures to minimize exposure, such exposure to litigation could affect our reputation adversely and come with costly compliance costs.

**Risks Related to Intellectual Property**

***A significant portion of our intellectual property is not protected through patents or formal copyright registration. As a result, we do not have the full benefit of patent or copyright laws to prevent others from replicating our products, product candidates, and brands.***

OTHYS utilizes proprietary sales processes, technology, and customer data management tools to optimize operations. However, there is no guarantee that competitors won't attempt to replicate certain strategies. While OTHYS does not rely on patents, maintaining trade secrets and operational know-how is essential to protecting its competitive advantage.

We have not protected our intellectual property rights through patents or formal copyright registration, and we do not currently have any patent applications pending other than our new patent application that we filed for our propulsion system being developed. There can be no assurance that any patent will issue or if issued that the patent will protect our intellectual property. As a result, we may not be able to protect our intellectual property and trade secrets or prevent others from independently developing substantially equivalent proprietary information and techniques or from otherwise gaining access to our intellectual property or trade secrets. In such an instance, our competitors could produce products that are nearly identical to ours resulting in us selling less products or generating less revenue from our sales.

***Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and other proprietary information.***

We rely on trade secrets, know-how and technology, which are not protected by patents, to protect the intellectual property behind our electric powertrain and for the construction of our boats. We have recently begun to use confidentiality agreements with our collaborators, employees, consultants, outside collaborators and other advisors to protect our proprietary technology and processes. We intend to use such agreements in the future, but these agreements may not effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure of confidential information. In addition, others may independently discover trade secrets and proprietary information, and in such cases we could not assert any trade secret rights against such party. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary rights, and failure to obtain or maintain trade secret protection could adversely affect our competitive business position.

***We may need to defend ourselves against patent, copyright or trademark infringement claims, which may be time-consuming and would cause us to incur substantial costs.***

The status of the protection of our intellectual property is unsettled as we do not have any issued patents, registered trademarks or registered copyrights for most of our intellectual property and other than one patent application, we have not applied for the same. Companies, organizations or individuals, including our competitors, may hold or obtain patents, trademarks or other proprietary rights that would prevent, limit or interfere with our ability to make, use, develop, sell or market our powerboats and electric powertrains or use third-party components, which could make it more difficult for us to operate our business. From time to time, we may receive communications from third parties that allege our products or components thereof are covered by their patents or trademarks or other intellectual property rights. Companies holding patents or other intellectual property rights may bring suits alleging infringement of such rights or otherwise assert their rights. If we are determined to have infringed upon a third party's intellectual property rights, we may be required to do one or more of the following:

In the event of a successful claim of infringement against us and our failure or inability to obtain a license to the infringed technology or other intellectual property right, our business, prospects, operating results and financial condition could be materially adversely affected. In addition, any litigation or claims, whether or not valid, could result in substantial costs, negative publicity and diversion of resources and management attention.

***We may be unable to adequately maintain, enforce, and protect our intellectual property rights and we may be accused of infringing the intellectual property rights of third parties, which could have a material adverse effect on our business, financial condition, and operations.***

It is possible that competitors or other third parties may attempt to unlawfully copy, obtain or otherwise use our trade names, trademarks, patents, or other intellectual property or proprietary information without our consent. We take commercially reasonable measures designed to identify and protect our intellectual property. However, monitoring unauthorized use of our intellectual property is difficult and costly, and the steps we have taken may not be sufficient to effectively prevent third parties from infringing, misappropriating, diluting or otherwise violating our intellectual property rights. From time to time, we may be compelled to protect our intellectual property, which may involve litigation. Such litigation may be time-consuming and expensive and could result in the impairment or loss of the intellectual property involved. There is no guarantee that the steps we take to protect our intellectual property, including litigation, when necessary, will be successful.

We cannot assure that our intellectual property rights will be effectively utilized, maintained, or, if necessary, successfully enforced against third parties. There is a risk that we will not be able to obtain and perfect our own intellectual property rights, or, where appropriate, license from others intellectual property rights. Our intellectual property rights, and any additional rights we may obtain in the future, may be invalidated, circumvented or challenged, and the legal costs necessary to protect our intellectual property rights could be significant. Our failure to obtain registered intellectual property rights, or maintain or successfully assert intellectual property rights could harm our competitive position and could have a material adverse effect on our financial condition, results of operations and cash flows.

We may also be subject to infringement, misappropriation, dilution, or other violation complaints from others asserting our use of intellectual property rights owned or alleged to be owned by third parties. Litigation related to such claims, whether or not meritorious, may result in injunctions against us or the payment of damages. Even if intellectual property claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert our resources and require significant expenditures. Any of the foregoing could prevent us from competing effectively and could have a material adverse effect on our business, operations, and financial condition.

**Risks Relating to This Offering**

***The Company is a holding company with no operations of its own, and it depends on its operating subsidiary for cash to fund all of its operations and expenses, including to make future dividend payments, if any.***

Our operations are conducted entirely through our operating subsidiary, and our ability to generate cash to fund operations and expenses, to pay dividends or to meet debt service obligations is highly dependent on the earnings and the receipt of funds from our affiliates through dividends or intercompany loans. Deterioration in the financial condition, earnings or cash flow of the Company and its affiliates for any reason could limit or impair their ability to pay such distributions.

Additionally, to the extent that the Company needs funds, and its affiliates are restricted from making such distributions under applicable law or regulation or under the terms of our financing arrangements, or are otherwise unable to provide such funds, it could materially adversely affect our business, financial condition, results of operations, and cash flows.

***We are a "controlled company" within the meaning of the NYSE American Rules and, as a result, may rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies.***

Upon the completion of this offering, we will be a "controlled company" as defined under the NYSE American Rules. For so long as we remain a controlled company under that definition, we are permitted to elect to rely, and may choose to rely, on certain exemptions from the corporate governance requirements in the NYSE American Rules, including an exemption from the rule that a majority of our board of directors must be independent directors. As a result, you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements.

***An active and liquid trading market for our Common Stock may not develop.***

Prior to this Offering, our Common Stock was not traded on any market. An active and liquid trading market for our Common Stock may not develop or be maintained after this Offering. Liquid and active trading markets usually result in less price volatility and more efficiency in carrying out investors' purchase and sale orders. The market price of our Common Stock could vary significantly as a result of a number of factors, some of which are beyond our control. In the event of a drop in the market price of our Common Stock, you could lose a substantial part or all of your investment in our Common Stock. The offering price will be negotiated between us and the underwriter, and may not be indicative of the market price of our Common Stock after this Offering. Consequently, you may not be able to sell our Common Stock at prices equal to or greater than the price paid by you in the Offering.

***The price of our Common Stock may be volatile, and purchasers of our Common Stock could incur substantial losses.***

Our share price may be volatile. The stock market in general has experienced extreme volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility, investors may not be able to sell their Common Stock at or above the offering price. The market price for our Common Stock will be influenced by many factors, including, but not limited to:

● the
 success of our staffing arrangements and the marketing of our services;

● the
 recruitment or departure of key personnel;

● quarterly
 or annual variations in our financial results or those of companies that are perceived to be similar to us;

● market
 conditions in the industries in which we compete and issuance of new or changed securities;

● analysts'
 reports or recommendations;

● the
 failure of securities analysts to cover our Common Stock after this Offering or changes in financial estimates by analysts;

● the
 inability to meet the financial estimates of analysts who follow our Common Stock;

● the
 issuance of any additional securities of ours;

● investor
 perception of our company and of the industry in which we compete; and

● general
 economic, political, and market conditions.

***A substantial portion of our total issued and outstanding shares may be sold into the market at any time. This could cause the market price of our Common Stock to drop significantly, even if our business is doing well.***

All of the Common Stock being sold in this Offering will be freely tradable without restrictions or further registration under the federal securities laws unless purchased by our "affiliates," as that term is defined in Rule 144 under the Securities Act. Of the remaining shares of Common Stock issued and outstanding upon the closing of this Offering, approximately % are restricted securities as defined in Rule 144 under the Securities Act. Restricted securities may be sold in the United States public market only if registered or if they qualify for an exemption from registration, including by reason of Rules 144 or 701 under the Securities Act. All of our restricted Common Stock will be eligible for sale in the public market 12 months following the effective date of the registration for this Offering, subject in certain circumstances to the volume, manner of sale and other limitations under Rule 144, and also the lock-up agreements described under "Underwriting" in this prospectus. This includes the Transferred Securities which are not registered in this offering and are locked-up pursuant to the Lock-Up Agreements. Additionally, we intend to register all our Common Stock that we may issue under our employee benefit plans. Once we register these shares of Common Stock, they can be freely sold in the public market upon issuance, unless pursuant to their terms these share awards have transfer restrictions attached to them. Sales of a substantial number of shares of our Common Stock, or the perception in the market that the holders of a large number of shares intend to sell their Common Stock, could reduce the market price of our Common Stock.

***If our listing application for our Common Stock is not approved by NYSE American, we will not be able to consummate the Offering and will terminate the Offering.***

If our listing application is not approved by NYSE American, we will not be able to consummate the Offering and will terminate the Offering. Failure to have our Common Stock listed on NYSE American would make it more difficult for our stockholders to dispose of our Common Stock and more difficult to obtain accurate price quotations on our Common Stock. Our ability to issue additional securities for financing or other purposes, or otherwise to arrange for any financing we may need in the future, may also be materially and adversely affected if our Common Stock is not traded on a national securities exchange.

***The market price of our Common Stock may be highly volatile, and you could lose all or part of your investment.***

The trading price of our Common Stock is likely to be volatile. Upon the consummation of this Offering, we will have a relatively small public float due to the relatively small size of the Offering, and the concentrated ownership of our Common Stock among our executive officers, directors, and greater than 5% stockholders. As a result of our small public float, our Common Stock may be less liquid and have greater stock price volatility than the common stock of companies with broader public ownership.

Our stock price could be subject to wide fluctuations in response to a variety of other factors, which include:

● whether
 we achieve our anticipated corporate objectives;

● changes
 in financial or operational estimates or projections;

● termination
 of the lock-up agreement or other restrictions on the ability of our stockholders and other security holders to sell shares after
 this Offering; and

● general
 economic or political conditions in the United States or elsewhere.

In addition, the stock market in general, and the stock of aviation and staffing companies in particular, has recently experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Such rapid and substantial price volatility, including any stock run-up, may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our stock. This volatility may prevent you from being able to sell your securities at or above the price you paid for your securities. If the market price of our Common Stock after the Offering does not exceed the offering price, you may not realize any return on your investment in us and may lose some or all of your investment.

***For as long as we are an emerging growth company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies.***

We are classified as an "emerging growth company" under the JOBS Act. For as long as we are an emerging growth company, which may be up to five full fiscal years, unlike other public companies, we will not be required to, among other things: (i) provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; (ii) comply with any new requirements adopted by the PCAOB requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer; (iii) provide certain disclosures regarding executive compensation required of larger public companies; or (iv) hold nonbinding advisory votes on executive compensation. We will remain an emerging growth company for up to five years, although we will lose that status sooner if we have more than $1.235 billion of revenue in a fiscal year, have more than $700 million in market value of our Common Stock held by non-affiliates, or issue more than $1.0 billion of non-convertible debt over a three-year period.

To the extent that we rely on any exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal control over financial reporting than issuers that are not emerging growth companies. If some investors find our Common Stock to be less attractive as a result, there may be a less active trading market for our Common Stock, and their trading prices may be more volatile.

***If you purchase our Common Stock in the Offering, you will suffer immediate and substantial dilution of your investment.***

The offering price of the Common Stock is substantially higher than the net tangible book value per share. Therefore, if you purchase Common Stock in the Offering, your interest will be diluted immediately to the extent of the difference between the offering price and the net tangible book value per share after this Offering. See "*Dilution*."

***We have broad discretion in the use of our net proceeds from the Common Stock sold in the Offering and may not use them effectively.***

Our management will have broad discretion in the application of the net proceeds from this Offering and could spend the proceeds in ways that do not improve our operating results or enhance the value of our Common Stock. Our stockholders may not agree with the manner in which our management chooses to allocate and spend the net proceeds. The failure of our management to apply these funds effectively could result in financial losses that could have a material adverse effect on our business and cause the price of our Common Stock to decline. Pending their use, we may invest our net proceeds from this Offering in a manner that does not produce income, or that loses value. See "*Use of Proceeds*" in this prospectus.

***We do not intend to pay dividends on our Common Stock and consequently, your only opportunity to achieve a return on your investment is if the price of our Common Stock appreciates.***

We do not plan to declare dividends on shares of our Common Stock in the foreseeable future. Consequently, your only opportunity to achieve a return on your investment in us will be if the market price of our Common Stock appreciates, which may not occur, and you sell your Common Stock at a profit. There is no guarantee that the price of our Common Stock that will prevail in the market after this Offering will ever exceed the price that you pay for the Common Stock.

***There has been no independent valuation of our stock, which means that our Common Stock may be worth less than the offering price in the offering.***

The per share purchase price in the offering has been determined by us without independent valuation of our shares of Common Stock. We established the offering price based on management's estimate of the valuation of the Company's shares of Common Stock. This valuation is highly speculative and arbitrary. There is no relation to the market value, book value, or any other established criteria. We did not obtain an independent appraisal opinion on the valuation of our shares. Our shares of Common Stock may have a value significantly less than the offering price, and the shares may never obtain a value equal to or greater than the offering price.

***If securities industry analysts do not publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our Common Stock could be negatively affected.***

Any trading market for our Common Stock may be influenced in part by any research reports that securities industry analysts publish about us. We do not currently have and may never obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of us, the market price and market trading volume of our Common Stock could be negatively affected. In the event we are covered by analysts, and one or more of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage of us, the market price and market trading volume of our Common Stock could be negatively affected.

***Future issuances of debt securities, which would rank senior to our Common Stock upon any bankruptcy or liquidation, and future issuances of preferred stock, which could rank senior to our Common Stock for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be able to achieve from an investment in our Common Stock.***

In the future, we may attempt to increase our capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders of our Common Stock. Moreover, if we issue preferred stock, the holders of such preferred stock could be entitled to preferences over holders of Common Stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision to issue debt or preferred stock in any future offering, or borrow money from lenders, will depend in part on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders of our Common Stock must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return, if any, they may be able to achieve from an investment in our Common Stock.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements that can involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations and financial position, business strategy, prospective products, product approvals, research and development costs, future revenue, timing and likelihood of success, plans and objectives of management for future operations, future results of anticipated products and prospects, plans and objectives of management are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements contained in this prospectus include, but are not limited to, statements about:

● our
 ability to find, acquire or gain access to other discoveries and prospects and to successfully develop our current discoveries and
 prospects;

● the
 expected growth of our business and our operations, and the capital resources needed to progress our business plan;

● projected
 and targeted capital expenditures and other costs, commitments and revenue;

● the
 ability to obtain financing and the terms under which such financing may be available;

● our
 ability to retain key personnel, including the continued development of a sales and marketing infrastructure;

● other
 competitive pressures;

● cost
 of compliance with laws and regulations;

● environmental
 liabilities;

● other
 risk factors discussed in the "Risk Factors" section of this prospectus.

We have based these forward-looking statements largely on our current expectations and projections about our business, the industry in which we operate, and financial trends that we believe may affect our business, financial condition, results of operations, and prospects, and these forward-looking statements are not guarantees of future performance or development. These forward-looking statements speak only as of the date of this prospectus and are subject to a number of risks, uncertainties, and assumptions described in the section titled "Risk Factors" and elsewhere in this prospectus. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, or otherwise.

In addition, statements like "we believe," and similar statements reflect our beliefs and opinions on the relevant subject at the time the statement was made. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and you are cautioned not to unduly rely upon them.

**INDUSTRY AND OTHER DATA**

This prospectus contains industry, market, and competitive position data from our internal estimates and research, industry and general publications, research surveys, and studies conducted by third parties. Industry publications, studies, and surveys generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. Our internal data and estimates are based on information obtained from trade and business organizations and other contacts in the markets we operate and our management's understanding of industry conditions. While we believe each of these studies and publications is reliable, we have not independently verified market and industry data from third-party sources. While we believe our internal company research is reliable and the market definitions are appropriate, an independent source has verified neither such research nor definitions.

The industry in which we operate is subject to risks and uncertainties due to various factors, including those described in the section titled "Risk Factors." These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

**USE OF PROCEEDS**

We estimate that the net proceeds to us from our issuance and sale in this Offering will be approximately $21,992,740, assuming a public offering price of $5.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. If the underwriter's over-allotment option is exercised in full, we estimate that our net proceeds will be approximately $25,423,990.

The principal purposes of this offering are to obtain additional capital to support our operations, establish a public market for our Common Stock and facilitate our future access to the public capital markets. We currently anticipate that we will use the net proceeds from this offering, together with our existing resources, as follows:

● approximately $10,000,000 as working capital to service our floorplan of $40 million.

● approximately $1,000,000 for advertising and marketing of our inventory.

● approximately $8,000,000 as downpayments for the acquisition of waterfront properties to be used as a storage and service centers. These properties would support the Company's marine operations by providing space for inventory storage, maintenance, and customer services. While no definitive agreements have been entered into, the Company is actively exploring such opportunities.

● Approximately $2,900,000 in working capital debt, to repay a promissory note issued to First Carolina Bank on May 16, 2025, by Off The Hook Yacht Sales NC, LLC. The note has a principal amount of $2,877,517, bears interest at a rate of 7.5% through May 16, 2025, followed by a variable interest rate thereafter, and matures on November 2, 2027.

● the balance for working capital.

We believe opportunities may exist from time to time to expand our current business through acquisitions of, or investments in, complementary businesses, products or technologies. While we currently have no agreements or commitments to complete any such transaction at this time, we may use a portion of the net proceeds for these purposes.

The expected use of net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve. The amounts and timing of our actual expenditures may vary significantly depending on numerous factors, including the progress of our development and any unforeseen cash needs. As a result, our management will retain broad discretion over the allocation of the net proceeds. We cannot specify with certainty all of the particular uses for the net proceeds to be received upon the closing of this offering.

Based on our current operational plans and assumptions, we expect that the net proceeds from this offering together with our existing cash and grant funding balances will be sufficient to fund our operating expenses and capital expenditure requirements for at least 12 months from the closing of this offering. We have based this estimate on assumptions that may prove to be incorrect, and we could use our available capital resources sooner that we currently expect. Pending use of the proceeds as described above, we intend to invest the proceeds in a variety of capital preservation investments, including interest-bearing, investment-grade instruments and U.S. government securities.

**DIVIDEND POLICY**

We presently intend to retain our earnings, if any, to finance the development and growth of our business and operations and do not anticipate declaring or paying cash dividends on our Common Stock in the foreseeable future.

Any future determination as to the declaration and payment of dividends, if any, will be at the discretion of our board of directors and will depend on then-existing conditions, including our operating results, financial condition, contractual restrictions, capital requirements, business prospects, and other factors our board of directors may deem relevant.

**CAPITALIZATION**

The following table sets forth our cash and capitalization as of March 31, 2025, as follows:

● on an actual basis; and

● on pro forma basis to give effect to the reclassification of accumulated earnings of the predecessor entities to paid-in capital in connection with the Reorganization, including the conversion of each of the operating subsidiaries from a limited liability company to a corporation for tax purposes; and

● on a pro forma as adjusted basis to give further effect to (i) our issuance and sale of 5,000,000 shares of our Common Stock in this offering at an assumed initial public offering price of $5.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and estimated offering expenses payables by us, and (ii) the repayment of approximately $2,900,000 of outstanding working capital indebtedness as describe under "*Use of Proceeds*".

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  |<br>**Actual**<br>**(audited)** |<br>**Pro Forma**<br>**(unaudited) (1)** | **Pro Forma**<br>**as Adjusted**<br>**(unaudited) (2)** |
| Cash and cash equivalents | $934272 | $934272 | $20027012 |
| Debt | 29204449 | 29204449 | 26304449 |
| Stockholders' equity: |  |  |  |
| Common shares, $0.001 par value per share, 100,000,000 shares authorized, 20,000,000 common shares issued and outstanding on an actual basis as of March 31, 2025;25,000,000 common shares issued and outstanding on a pro forma as adjusted for the IPO; | 20000 | 20000 | 25000 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 2774944 | 645258 | 22632998 |
| &nbsp;&nbsp;&nbsp;Retained earnings | (2129686) | - | - |
| &nbsp;&nbsp;&nbsp;Total members' equity | $665258 | $665258 | $22657998 |
| &nbsp;&nbsp;&nbsp;Total capitalization | $29869707 | $29869707 | $48962447 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 as adjusted balance sheet data in the table above also reflects the reclassification of accumulated
 retained earnings of the predecessor entities of $2,129,686 to additional paid-in capital
 in connection with the Reorganization, including the conversion of each of the operating subsidiaries from a limited liability company to
a corporation for tax purposes. This reclassification is presented
 as if the accumulated retained earnings had been distributed to the owners and immediately
 contributed back to us as additional paid-in capital.

(2) The
 as adjusted balance sheet data in the table above reflects the sale and issuance by us of
 shares of our Common Stock in this offering, based upon the assumed initial public offering
 price of $5.00 per share, the midpoint of the price range set forth on the cover page
 of this prospectus, after deducting the underwriting discounts and commissions and estimated
 offering expenses payable by us, the repayment of approximately $2,900,000 of outstanding
 working capital indebtedness as describe under "*Use of Proceeds* ".

The number of shares of our Common Stock to be outstanding upon completion of this offering is based on 20,000,000 shares of our Common Stock outstanding as of March 31, 2025, and excludes:

● 4,000,000 shares of our Common Stock reserved under our
 2025 Stock Option Plan (the "202 5 Plan") for future issuance

● 250,000 shares of Common Stock issuable upon the
 exercise of the Underwriter's Warrant.

**DILUTION**

If you invest in our Common Stock, your ownership interest will be diluted to the extent of the difference between the public offering price per share of our Common Stock in this offering and the net tangible book value per share of Common Stock upon completion of this offering. Dilution results from the fact that the public offering price per share is substantially in excess of the net tangible book value per share attributable to the existing stockholders for our presently outstanding shares of Common Stock.

Our net tangible book value as of March 31, 2025 was $95,258, or $0.005 per share of Common Stock. Net tangible book value represents the amount of our total combined tangible assets, less the amount of our total combined liabilities. Dilution is determined by subtracting the net tangible book value per share of Common Stock (as adjusted for the offering) from the public offering price per share and after deducting the estimated underwriting discounts, non-accountable expense allowance, accountable expense allowance, and offering expenses payable by us.

After giving effect to the sale of shares of our Common Stock offered in this offering after deducting the estimated underwriting discounts and commissions and other offering expenses payable by us, our as adjusted net tangible book value as of March 31, 2025, would have been $22,087,998, or $0.884 per outstanding share of Common Stock. This represents an immediate increase in net tangible book value of $0.879 per share of Common Stock to the existing stockholders, and an immediate dilution in net tangible book value of $4.116 per share to investors purchasing the Common Stock in this offering. The as adjusted information discussed above is illustrative only.

The following table illustrates such dilution:

---

| | | |
|:---|:---|:---|
|  | **Over-allotment option not exercised** | **Over-allotment option exercised in full** |
| Assumed public offering price per share | $5.000 | $5.000 |
| Net tangible book value per Ordinary Share as of March 31, 2025 | $0.005 | $0.005 |
| As adjusted net tangible book value per share attributable to payments by new investors | $0.879 | $0.986 |
| As adjusted net tangible book value per share immediately after this offering | $0.884 | $0.991 |
| Amount of dilution in net tangible book value per share to new investors in the offering | $4.116 | $4.009 |

---

Each $1.00 increase (decrease) in the assumed initial public offering price of $5.00 per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, would increase (decrease) our as adjusted cash, additional paid-in capital, total stockholders' equity (deficit) and total capitalization by approximately $4.6 million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Each increase (decrease) of 1,000,000 shares in the number of shares of Common Stock offered by us would increase (decrease) our as adjusted cash, additional paid-in capital, total stockholders' equity (deficit) and total capitalization by approximately $4.6 million, assuming the assumed initial public offering price of $5.00 per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The as adjusted information discussed above is illustrative only and will be adjusted based on the actual public offering price and other terms of this offering determined at pricing.

The following tables summarize, on an as adjusted basis as of March 31, 2025, the differences between the existing stockholders and the new investors with respect to the number of shares of our Common Stock purchased from us, the total consideration paid and the weighted average price per share before deducting the estimated underwriting discounts, non-accountable expense allowance, and offering expenses payable by us.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Ordinary Shares** | **Ordinary Shares** | | | |
| | **purchased** | **purchased** | **Total consideration** | **Total consideration** | |
| <br>**Over-allotment**<br>**option not**<br>**exercised** | **Number** | **Percent** | **Amount** | **Percent** | **Average**<br>**price per**<br>**ordinary**<br>**shares** |
| Existing shareholders | 20000000 | 80.00% | $2794944 | 10.06% | $0.14 |
| New investors | 5000000 | 20.00% | $25000000 | 89.94% | $5.00 |
| Total | 25000000 | 100.00% | $27794944 | 100.00% | $1.112 |

---

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION** 

**AND RESULTS OF OPERATIONS**

*You should read the following discussion of our financial condition and results of operations in conjunction with "Summary Financial Data" and our financial statements and related notes included elsewhere in this prospectus. This management's discussion and analysis, and other parts of this prospectus, contain forward-looking statements based upon current beliefs, plans, and expectations that involve risks, uncertainties, and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements due to several factors, including those set forth under "Risk Factors" and elsewhere in this prospectus. You should carefully read the "Risk Factors" section of this prospectus to understand the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see the "Cautionary Note Regarding Forward-Looking Statements and Industry and Market Data" section in this prospectus.*

**Overview of Operations**

Off The Hook YS Inc. (the "OTHYS") operates as a nationwide leader in the yacht and boat dealership industry, offering a comprehensive suite of services that spans the entire boat value chain. With **9 physical locations** strategically situated across the United States and brokers operating nationwide, OTHYS provides unparalleled reach and accessibility to clients in every corner of the country and is now the largest marine wholesaler in existence.

The Company's operations are rooted in a vertically integrated model, combining sales, servicing, and financing. Each entity within the OTHYS portfolio plays a crucial role in delivering a full-service experience. Whether it's facilitating the buying or selling of yachts through OTH Simon Marine YF, LLC (the "Boat Center") and Off The Hook Yacht Sales NC, LLC, or streamlining financing options via Azure Funding, LLC ("Azure"). Azure is a recreational loan broker and lender, providing financing services to individuals for marine purchases. The Azure team is highly experienced in the marine lending industry with over 100 years in combined experience. OTHYS ensures that every step of the process is handled with expertise and efficiency.

OTHYS's brokers, positioned throughout the United States, specialize in navigating regional markets while maintaining a client-focused approach. Their nationwide presence ensures that OTHYS can meet the needs of customers regardless of their location, providing both local market insights and access to a vast network of industry connections.

This expansive operational structure allows OTHYS to execute over 400 yacht and boat transactions annually, generating almost $100 million in sales annually. By leveraging its nationwide broker network, advanced CRM technology, and synergistic portfolio of entities, OTHYS delivers exceptional value to clients and partners alike.

**Corporate Structure and Background**

OTHYS is a company established in Nevada. It is a holding company established on January 3, 2025 with no business operation. OTHYS and all the affiliates are collectively referred to as the "Company". The Company is one of the largest marine wholesalers in the United States. OTHYS, through its affiliates, Off The Hook Yacht Sales NC, LLC and Boat Center sell yachts and boats to the public. Azure is a recreational loan broker and lender, focused on providing financing services to individuals for marine, aviation and recreational vehicle purchases. The Company engages primarily in the retail sale, brokerage, and service of new and pre-owned boats, yachts and trailers, and offers maintenance, slip and storage accommodation in certain locations. The Company also arranges related boat financing, insurance, and extended service contracts for customers with Azure or third-party lenders and insurance companies.

In connection with our initial public offering, we will reorganize our corporate structure as follows:

● Off the Hook Yacht Sales NC, LLC, a North Carolina limited liability company;

● Azure Funding, LLC, a North Carolina limited liability company; and

● OTH Simon Marine YF LLC, a North Carolina limited liability company.

● $600,000 paid in cash as a non-refundable deposit upon the execution of the Amended SPA; and

● the balance of $2.4 million shall be payable at the closing under the Amended SPA, which shall occur upon, among other things, the Company's registration statement on form S-1 being declared effective by the Securities and Exchange Commission.

● The Transferred Securities will not be registered in this offering and will be locked up pursuant to lock-up agreements for 180 days following the closing of this offering.

**Results of Operations** 

***Comparison of the Years Ended December 31, 2024 (As restated) and 2023***

**Revenue**

Overall, revenue increased by $7,156,007, or 7.79%, to $98,995,562 for the year ended December 31, 2024, from $91,839,555 for the year ended December 31, 2023. The revenue increase is primarily due to a rise in our floorplan limit and the additional brokers we hired for OTHYS. These two moves allowed us to increase the number of new and pre-owned boats sold.

*New Boat Sales*

New boat sales increased by $798,700, or 7.82%, to $11,010,334 for the year ended December 31, 2024 from $10,211,634 for the year ended December 31, 2023. For the year ended December 31, 2024, we sold approximately 18 new units compared to approximately 12 units for the fiscal year ended December 31, 2023, an increase partially attributable to increased marketing efforts and more focused sales efforts on those new boat brands.

*Pre-owned Boat Sales*

Pre-owned boat sales increased by $6,038,174, or 7.66%, to $84,819,543 for the year ended December 31, 2024 from $78,781,369 for the year ended December 31, 2023. We sell a wide range of brands and sizes of pre-owned boats under different types of sales arrangements (e.g., trade-ins, brokerage and consignment), which causes periodic and seasonal fluctuations in the average sales price. For the year ended December 31, 2024, we sold approximately 296 pre-owned units compared to approximately 282 pre-owned units for the year ended December 31, 2023.

*Finance Income – Azure*

Revenue from arranging financing products, including financing, insurance and extended warranty contracts, to customers through various third-party financial institutions and insurance companies increased by $452,233, or 18.04%, to $2,959,159 for the year ended December 31, 2024 from $2,506,926 for the year ended December 31, 2023. This increase resulted from an increase in marketing efforts and the hiring of new loan officers.

*Service, Parts & Other Sales*

Service, parts & other sales decreased by $133,100, or (39.19)%, to $206,526 for the year ended December 31, 2024 from $339,626 for the year ended December 31, 2023. This decrease in service, parts & other sales was mainly due to reduced freight services.

**Gross Profit**

Gross profit decreased by $365,628, or (4.00)%, to $8,780,910 for the year ended December 31, 2024, compared to $9,146,538 for the year ended December 31, 2023. This decline was primarily driven by market conditions that resulted in compressed margins, particularly in our new boat segment. While new boat sales volume increased, these sales typically carry lower margins than our pre-owned and wholesale transactions, resulting in a negative mix shift that impacted overall profitability.

In addition, same-store sales declined modestly as consumer demand softened in certain geographic markets, further contributing to the overall decrease in gross profit. We continue to monitor margin trends closely and are focused on initiatives to improve product mix, optimize inventory turns, and expand higher-margin channels such as wholesale, brokerage, and marine finance.

*New Boat Gross Profit*

New boat gross profit decreased by $770,972, or (52.38)%, to $701,044 for the year ended December 31, 2024, compared to $1,472,016 for the year ended December 31, 2023. This decrease was primarily due to a weakening market that led us to sell several new boat units at or near cost in order to reduce aging inventory and manage floorplan exposure. Additionally, overall gross margins on new boat sales declined due to increased price sensitivity among consumers and broader industry-wide margin compression.

New boat gross profit as a percentage of new boat revenue was 6.37% for the year ended December 31, 2024, compared to 14.42% for the year ended December 31, 2023. The decline in margin percentage reflects both the shift in market conditions and our strategic decision to accelerate inventory turnover in response to slowing demand.

*Pre-owned Boat Gross Profit*

Pre-owned boat gross profit increased by $130,118, or 2.10%, to $6,328,626 for the year ended December 31, 2024, compared to $6,198,508 for the year ended December 31, 2023. This modest increase occurred despite a softening, which resulted in downward pressure on pricing and a need to move certain inventory at reduced margins in order to maintain turnover and liquidity. In several cases, boats were sold at or near breakeven to avoid aging inventory and to reduce floorplan interest expenses.

Pre-owned boat gross profit as a percentage of pre-owned boat revenue was 7.46% in 2024 and 7.87% in 2023. We sell a diverse mix of pre-owned boats across various price points, brands, and sales channels —including trade-ins, consignment, wholesale, and brokerage —which naturally contributes to fluctuations in gross profit margins due to varying transaction structures and sales dynamics.

In the year ended December 31, 2024, we observed a shift toward more competitively priced wholesale and trade-in deals, which tend to yield lower gross margins compared to brokerage transactions. Additionally, broader industry pressures, including rising inventory levels and greater price sensitivity among buyers, contributed to the margin compression we experienced in this segment.

*Finance Income – Azure*

Finance gross profit increased by $508,504, or 42.04%, to $1,718,016 for the year ended December 31, 2024 from $1,209,512 for the year ended December 31, 2023. Finance income is fee-based revenue for which we do not recognize incremental expense.

*Service, Parts & Other Sales*

Service, parts & other gross profit decreased by $233,278 or (87.53)%, to $33,224 for the year ended December 31, 2024 from $266,502 for the year ended December 31, 2023. Service, parts & other gross profit as a percentage of service, parts & other revenue was 16.09% and 78.47% for the years ended December 31, 2024 and 2023, respectively. This decrease in gross profit margin was the result of an decrease in retail service work performed at our North Carolina Marina.

**Selling, General and Administrative Expenses (As restated)**

Selling, general, and administrative ("SG&A") expenses consist primarily of rent, insurance, utilities, and other customary operating expenses. SG&A decreased $200,158 (restated), or (10.25)% (restated), to $1,752,325(restated) for the year ended December 31, 2024 compared to $1,952,483 for the year ended December 31, 2023.

**Depreciation and Amortization**

Depreciation and amortization expense increased $38,179, or 17.59%, to $255,240 for the year ended December 31, 2024 compared to $217,061 for the year ended December 31, 2023. The increase was primarily attributable to an increase in our asset base through the year.

**Salaries and Wages**

Salaries and wages expense decreased $69,233 or (2.51)%, to $2,689,843 for the year ended December 31, 2024 compared to $2,759,076 for the year ended December 31, 2023.

**Advertising and Marketing**

Advertising and marketing expense decreased $51,054, or (9.45)%, to $489,008 for the year ended December 31, 2024 compared to $540,062 for the year ended December 31, 2023.

**Interest Expense – Floor Plan**

Interest expense – floor plan decreased $57,425, or (4.76)%, to $1,149,168 for the year ended December 31, 2024 compared to $1,206,593 for the year ended December 31, 2023.

**Interest Expense – Other**

The increase in interest expense – other of $4,937, or 1.05%, to $473,293 for the year ended December 31, 2024 compared to $468,356 for the year ended December 31, 2023.

**Liquidity and Capital Resources (As restated)**

The following table provides selected financial data about us as of December 31, 2024 and December 31, 2023.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024 (As restated)** | **December 31, 2023** | **$ Change** | **% Change** |
| Cash | $2927126 | $1654631 | $1272495 | 76.91% |
| Current assets | $28858990 | $18050253 | $10808737 | 59.88% |
| Current liabilities | $29302431 | $20081331 | $9221100 | 45.92% |
| Working capital | $(443441) | $(2031078) | $1587637 | 78.17% |

---

As of December 31, 2024, we had sufficient assets to meet ongoing expenses or debts that may accumulate. As of December 31, 2024, we had $2,927,126 (restated) in cash, total current assets were $28,858,990 (restated), total assets were $31,635,740 (restated), and our total liabilities were $30,668,350 (restated). Liabilities were comprised primarily of floor plan notes payable of $20,595,517, and current liabilities of $29,302,431, which included accounts payable and accrued liabilities of $1,470,009, customer deposit of $2,350,219, due to related parties of $1,422,540 (restated) and current portion of operating lease right of use liability of $382,731. As of December 31, 2023, we had $1,654,631 in cash, total current assets were $18,050,253, total assets were $20,302,241, and our total liabilities were $20,551,961.

Our working capital increased by $1,587,637 (restated) from $(2,031,078) at December 31, 2023, as compared to $(443,441) (restated) at December 31, 2024, due primarily to the increase in our current assets of cash and inventory, for a total of $11,309,105 (restated) offset by the increase in current liabilities including accounts payable and floor plan notes payable for a total of $10,413,996 offset by the reduction in due to related party and short-term loan payable of $1,769,594 (restated).

**Impact of Taxable Status on Future Results and Liquidity**

Historically, the OTH Companies were treated as a partnership for U.S. federal and certain state income tax purposes and, as such, was not subject to entity-level income taxes. Upon completion of the Reorganization, OTH Companies together with the Company will be subject to U.S. federal income tax and state income taxes in jurisdictions where it conducts business. As a result, we expect our effective tax rate to increase, which will reduce our net income and cash flows compared to historical periods.

Based on our current operations and estimated statutory tax rates, we estimate that our pro forma income tax expense would have been approximately $208,254 and net income would have been $783,430 for the fiscal year ended 2024, had we been taxed as a C corporation.

**Cash Flow (As restated)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended** | **Years Ended** | | |
|  | **December 31,** | **December 31,** | | |
|  | **2024 (As restated)** | **2023** |<br>**$ Change** |<br>**% Change** |
| Cash used in operating activities | $(7108232) | $(3936094) | $(3172138) | 80.59% |
| Cash used in investing activities | $(25012) | $(536400) | $511388 | (95.34)% |
| Cash provided by (used in) financing activities | $8405740 | $288992 | $8116748 | (2808.64)% |
| Net Change in Cash | $1272496 | $(4183502) | $5455998 | 130.42% |

---

***Cash Flow from Operating Activities***

As of December 31, 2024, we generated negative cash flows from operating activities. For the year ended December 31, 2024, net cash flows used in operating activities totaled $7,108,232 (restated) compared to $3,936,094 used during the year ended December 31, 2023. The $3,172,138 (restated) increase in cash used in operating activities was primarily attributable to the increase in inventory. These amounts were partially offset by the decrease in due to related parties and a decrease in private label receivable.

Net cash used in operating activities amounted to $3,936,094 for the year ended December 31, 2023, mainly derived from the decrease in due to related parties and the increase in private label receivable, mainly offset by the increase of customer deposits.

***Cash Flows from Investing Activities***

For the year ended December 31, 2024, net cash used in investing activities totaled $25,012 (restated), representing an decrease of $511,385 (restated) from $536,400 in the prior year.

***Cash Flows from Financing Activities***

Net cash provided by financing activities amounted to $8,405,740 (restated) for the year ended December 31, 2024, mainly derived from the contribution from members and proceeds from floorplan notes, mainly offset by payment to short-term loans and payments to floor plan notes payables.

Net cash provided by financing activities amounted to $288,992 for the year ended December 31, 2023, mainly derived from the payment to floor plan notes payables, mainly offset by the contribution from members and proceed from short-term loan payable.

**Commitments and Commercial Commitments**

The following table sets forth a summary of our material contractual obligations and commercial commitments as of December 31, 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payments Due by Period Ending December 31, 2024** | **Payments Due by Period Ending December 31, 2024** | **Payments Due by Period Ending December 31, 2024** | **Payments Due by Period Ending December 31, 2024** | **Payments Due by Period Ending December 31, 2024** |
|  | **Total** | **Less Than 1 Year** | **1-3 Years** | **3-5 Years** | **More Than 5 Years** |
| Floor plan notes payable (1) | $20595517 | $20595517 | $- | $- | $- |
| Long-term debt (2) | $366763 | $137468 | $133953 | $95342 | $- |
| Operating leases (3) | $1519355 | $382731 | $665622 | $471002 | $- |
| Total | 22481635 | 21115716 | 799575 | 566344 | - |

---

(1) Estimates of future floor plan notes payable payments have been excluded from the tabular presentation, as the amounts due are contingent upon the outstanding balances and variable interest rates. For details regarding borrowing availability, interest rates, and terms related to our floor plan notes payable, refer to Note 9 of the Notes to Combined Financial Statements.

(2) The amounts included in long-term debt refers to future cash principal payments. Refer to Note 12 of the Notes to Combined Financial Statements for disclosure of borrowing availability, interest rates, and terms of our long-term debt.

(3) Amounts for operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. These amounts are not a material component of operating expenses.

<u>Off-Balance Sheet Arrangements</u>

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of December 31, 2024 and December 31, 2023.

***Comparison of the Three Months Ended March 31, 2025 and 2024***

**Revenue**

Overall, revenue increased by $6,406,933, or 30.76%, to $27,238,782 for the three months ended March 31, 2025, from $20,831,849 for the three months ended March 31, 2024. The revenue increase is primarily due to a rise in our floorplan limit and the additional brokers we hired for OTHYS. These two moves allowed us to increase the number of new and pre-owned boats sold.

*New Boat Sales*

New boat sales decreased by $962,945, or (14.86)%, to $5,518,110 for the three months ended March 31, 2025 from $6,481,055 for the three months ended March 31, 2024. For the three months ended March 31, 2025, we sold approximately 6 new units compared to approximately 12 units for the three months ended March 31, 2024, an decrease partially attributable to decreased marketing efforts and a slow down in the new boat market.

*Pre-owned Boat Sales*

Pre-owned boat sales increased by $7,496,087, or 55.27%, to $21,058,418 for three months ended March 31, 2025 from $13,562,331 for the three months ended March 31, 2024. We sell a wide range of brands and sizes of pre-owned boats under different types of sales arrangements (e.g., trade-ins, brokerage and consignment), which causes periodic and seasonal fluctuations in the average sales price. For the three months ended March 31, 2025, we sold approximately 80 pre-owned units compared to approximately 49 pre-owned units for the three months ended March 31, 2024.

*Finance Income – Azure*

Revenue from arranging financing products, including financing, insurance and extended warranty contracts, to customers through various third-party financial institutions and insurance companies decreased by $93,864, or (13.41)%, to $606,225 for the three months ended March 31, 2025 from $700,089 for the three months ended March 31, 2024. This decrease resulted from a decrease in marketing efforts and the less hiring of new loan officers.

*Service, Parts & Other Sales*

Service, parts & other sales decreased by $32,345, or (36.60)%, to $56,029 for the three months ended March 31, 2025 from $88,374 for the three months ended March 31, 2024. This decrease in service, parts & other sales was mainly due to reduced freight services.

**Gross Profit**

Gross profit increased by $583,306, or 27.87%, to $2,676,629 for the three months ended March 31, 2025, compared to $2,093,323 for the three months ended March 31, 2024. This increase was primarily driven by our increase in overall sales revenue, specifically our used boat segment. Our gross profit as a percentage of sales increased modestly. This can be attributed to management's efforts to consistently monitor overhead and direct expenses associated with our inventory. Moreover, our margin improvements are attributable to our purchasing team's skillful buying decisions regarding our used boat inventory.

*New Boat Gross Profit*

New boat gross profit decreased by $334,399, or (57.06)%, to $251,643 for the three months ended March 31, 2025, compared to $586,042 for the three months ended March 31, 2024. This decrease was primarily due to a weakening market that led us to sell several new boat units at or near cost in order to reduce aging inventory and manage floorplan exposure. Additionally, overall gross margins on new boat sales declined due to increased price sensitivity among consumers and broader industry-wide margin compression.

New boat gross profit as a percentage of new boat revenue was 4.56% for the three months ended March 31, 2025, compared to 9.04% for the three months ended March 31, 2024. The decline in margin percentage reflects both the shift in market conditions and our strategic decision to accelerate inventory turnover in response to slowing demand.

*Pre-owned Boat Gross Profit*

Pre-owned boat gross profit increased by $1,002,015, or 98.12%, to $2,023,249 for the three months ended March 31, 2025, compared to $1,021,234 for the three months ended March 31, 2024. This increase occurred despite a softening, which resulted in downward pressure on pricing and a need to move certain inventory at reduced margins in order to maintain turnover and liquidity. In several cases, boats were sold at or near breakeven to avoid aging inventory and to reduce floorplan interest expenses.

Pre-owned boat gross profit as a percentage of pre-owned boat revenue was 9.61% in 2025 Q1 and 7.53% in 2024 Q1. We sell a diverse mix of pre-owned boats across various price points, brands, and sales channels —including trade-ins, consignment, wholesale, and brokerage —which naturally contributes to fluctuations in gross profit margins due to varying transaction structures and sales dynamics.

In the three months ended March 31, 2024, we observed a shift toward more competitively priced wholesale and trade-in deals, which tend to yield lower gross margins compared to brokerage transactions. Additionally, broader industry pressures, including rising inventory levels and greater price sensitivity among buyers, contributed to the margin compression we experienced in this segment.

*Finance Income – Azure*

Finance gross profit decreased by $71,528, or (17.14)%, to $345,708 for the three months ended March 31, 2025 from $417,236 for the three months ended March 31, 2024. Finance income is fee-based revenue for which we do not recognize incremental expense.

*Service, Parts & Other Sales*

Service, parts & other gross profit decreased by $12,782 or (18.58)%, to $56,029 for the three months ended March 31, 2025 from $68,811 for the three months ended March 31, 2024. Service, parts & other gross profit as a percentage of service, parts & other revenue was 100.00% and 77.86% for the three months ended March 31, 2025 and 2024, respectively. This decrease in gross profit margin was the result of an decrease in retail service work performed at our North Carolina Marina.

**Selling, General and Administrative Expenses**

SG&A expenses consist primarily of rent, insurance, utilities, and other customary operating expenses. SG&A decreased $37,393, or (8.11)%, to $423,860 for the three months ended March 31, 2025 compared to $461,253 for the three months ended March 31, 2024.

**Depreciation and Amortization**

Depreciation and amortization expense decreased $28,970, or (44.34)%, to $36,373 for the three months ended March 31, 2025 compared to $65,343 for the three months ended March 31, 2024. The decrease was primarily attributable to an decrease in our asset base through the year.

**Salaries and Wages**

Salaries and wages expense increased $263,416 or 44.51%, to $855,282 for the three months ended March 31, 2025 compared to $591,866 for the three months ended March 31, 2024.

**Advertising and Marketing**

Advertising and marketing expense increased $202,005, or 159.01%, to $329,046 for the three months ended March 31, 2025 compared to $127,041 for the three months ended March 31, 2024.

**Interest Expense – Floor Plan**

Interest expense – floor plan increased $251,589, or 116.82%, to $466,954 for the three months ended March 31, 2025 compared to $215,365 for the three months ended March 31, 2024.

**Interest Expense – Other**

The decrease in interest expense – other of $112,537, or (58.96)%, to $78,344 for the three months ended March 31, 2025 compared to $190,881 for the three months ended March 31, 2024.

**Liquidity and Capital Resources (As restated)**

The following table provides selected financial data about us as of March 31, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024 (As restated)** | **$ Change** | **% Change** |
| Cash | $934272 | $2927126 | $(1992854) | (68.08)% |
| Current assets | $31165096 | $28858990 | $2306106 | 7.99% |
| Current liabilities | $31864036 | $29302431 | $2561605 | 8.74% |
| Working capital | $(698940) | $(443441) | $(255499) | (57.62)% |

---

As of March 31, 2025, we had sufficient assets to meet ongoing expenses or debts that may accumulate. As of March 31, 2025, we had $934,272 in cash, total current assets were $31,165,096, total assets were $33,803,945, and our total liabilities were $33,138,687. Liabilities were comprised primarily of floor plan notes payable of $24,660,132, line of credit of $2,833,400 and due to related parties of $1,372,825.

As of December 31, 2024, we had sufficient assets to meet ongoing expenses or debts that may accumulate. As of December 31, 2024, we had $2,927,126 (restated) in cash, total current assets were $28,858,990 (restated), total assets were $31,635,740 (restated) , and our total liabilities were $30,668,350 (restated). Liabilities were comprised primarily of floor plan notes payable of $20,595,517, and current liabilities of $29,302,431, which included accounts payable and accrued liabilities of $1,470,009, customer deposit of $2,350,219, due to related parties of $1,422,540 (restated) and current portion of operating lease right of use liability of $382,731. As of December 31, 2023, we had $1,654,631 in cash, total current assets were $18,050,253, total assets were $20,302,241, and our total liabilities were $20,551,961.

Our working capital decreased by $255,499 from $(443,441) at December 31, 2024, as compared to $(698,840) at March 31, 2025, due primarily to the decrease in cash, for a total of $1,992,854 and the increase in floorplan notes payable of $4,064,615.

**Impact of Taxable Status on Future Results and Liquidity**

Historically, the OTH Companies were treated as a partnership for U.S. federal and certain state income tax purposes and, as such, was not subject to entity-level income taxes. Upon completion of the Reorganization, OTH Companies together with the Company will be subject to U.S. federal income tax and state income taxes in jurisdictions where it conducts business. As a result, we expect our effective tax rate to increase, which will reduce our net income and cash flows compared to historical periods.

Based on our current operations and estimated statutory tax rates, we estimate that our pro forma income tax expense would have been approximately $60,853 and net income would have been $228,921 for the three months ended March 31, 2025, as we had been taxed as a C corporation.

**Cash Flow**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | | |
|  | **March 31,** | **March 31,** | | |
|  | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| Net cash provided by (used in) operating activities | $(5376344) | $373965 | $(5750309) | (1537.66)% |
| Cash used in investing activities | $(10833) | $- | $(10833) | 100.00% |
| Net cash provided by financing activities | $3394323 | $695974 | $2698349 | 387.71% |
| Net change in cash | $(1992854) | $1069939 | $(3062793) | (286.26)% |

---

***Cash Flow from Operating Activities***

As of March 31, 2025, we generated negative cash flows from operating activities. For the three months ended March 31, 2025, net cash flows used in operating activities totaled $5,376,344 compared to $373,965 provided during the three months ended March 31, 2024. The $5,750,309 decrease in cash used in operating activities was primarily attributable to the increase in inventory. These amounts were partially offset by the decrease in other current asset.

Net cash provided by operating activities amounted to $373,965 for the three months ended March 31, 2024, mainly derived from the decrease in prepaid expense, mainly offset by the increase of inventory.

***Cash Flows from Investing Activities***

For the three months ended March 31, 2025, net cash used in investing activities totaled $10,833, representing an decrease of $10,833 from nil in the prior period.

***Cash Flows from Financing Activities***

Net cash provided by financing activities amounted to $3,394,323 for the three months ended March 31, 2025, mainly derived from the proceeds from floorplan notes, mainly offset by payment to floor plan notes payables.

Net cash provided by financing activities amounted to $695,974 for the three months ended March 31, 2024, mainly derived from proceed from floorplan notes, mainly offset by payment to floor plan notes payables.

**Commitments and Commercial Commitments**

The following table sets forth a summary of our material contractual obligations and commercial commitments as of March 31, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payments Due by Period Ending March 31, 2025** | **Payments Due by Period Ending March 31, 2025** | **Payments Due by Period Ending March 31, 2025** | **Payments Due by Period Ending March 31, 2025** | **Payments Due by Period Ending March 31, 2025** |
|  | **Total** | **Less Than 1 Year** | **1-3 Years** | **3-5 Years** | **More Than 5 Years** |
| Floor plan notes payable (1) | $24660132 | $24660132 | $- | $- | $- |
| Long-term debt (2) | $338092 | $116692 | $221400 | $- | $- |
| Operating leases (3) | $1420477 | $367227 | $947180 | $106070 | $- |
| Total | 26418701 | 25144051 | 1168580 | 106070 | - |

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(1) Estimates of future floor plan notes payable payments have been excluded from the tabular presentation, as the amounts due are contingent upon the outstanding balances and variable interest rates. For details regarding borrowing availability, interest rates, and terms related to our floor plan notes payable, refer to Note 9 of the Notes to Combined Financial Statements.

(2) The amounts included in long-term debt refers to future cash principal payments. Refer to Note 11 of the Notes to Combined Financial Statements for disclosure of borrowing availability, interest rates, and terms of our long-term debt.

(3) Amounts for operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. These amounts are not a material component of operating expenses.

<u>Off-Balance Sheet Arrangements</u>

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of March 31, 2025 and December 31, 2024.

***Critical Accounting Policies and Significant Judgments and Estimates***

This discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are described in more detail in the notes to our financial statements included elsewhere in this prospectus, we believe that the following accounting policies are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management's judgments and estimates.

***Revenue Recognition***

The majority of our revenue is from contracts with customers for the sale of boats, yachts, and trailers. We recognize revenue from boat, yacht, and trailer sales upon transfer of control of the boat, yacht, or trailer to the customer, which is generally upon acceptance of the boat, yacht, and trailer by the customer and the satisfaction of our performance obligations. The transaction price is determined with the customer at the time of sale.

Boat, yacht, and trailer sales transactions often include both cash and non-cash consideration. Cash consideration is paid directly by the Company's customers or by third-party financial institutions financing the Company's customer transactions. Non-cash consideration is in the form of trade-in used boats. The Company assigns a value to trade-in assets by estimating a future selling price, which the Company estimates based on relevant internal and third-party data, less a gross profit amount to be realized at the time the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale. Both cash and non-cash consideration may be received prior to or after the Company's performance obligation is satisfied. Any consideration received prior to the satisfaction of the Company's performance obligation is recognized as deferred revenue. Revenue recognized associated with trade-ins solely relates to end-user boat purchasers and not to boat manufactures or other wholesalers. As of March 31, 2025 the Company held trade-in boats recorded as inventory with a total value of $3,703,000. For the three months ended March 31, 2025, the Company recognized $1,180,250 in revenue from the sale of trade-in boats. As of March 31, 2024 the Company held trade-in boats recorded as inventory with a total value of $2,436,500. For the three months ended March 31, 2024, the Company recognized $2,767,900 in revenue from the sale of trade-in boats.

Revenue is recognized from the sale of products and commissions earned on new and pre-owned boats (including used, brokerage, consignment and wholesale) when ownership is transferred to the customer, which is generally upon acceptance or delivery to the customer. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits at such time.

Principal versus Agent Considerations:

We evaluate whether we are acting as a principal or an agent in each type of revenue transaction by assessing whether we control the specified goods or services before they are transferred to the customer, in accordance with ASC 606. We are the principal for sales of new, pre-owned, consignment, and wholesale boats, because we control the boat or yacht before transfer to the customer, bear the inventory risk, and have discretion in establishing prices. Accordingly, revenue from these transactions is recognized at the gross sales price.

For brokerage transactions, we act solely as an agent in arranging the sale of a boat between a seller and a buyer. In these transactions, we do not control the boat prior to transfer and do not bear the inventory risk. Therefore, we recognize revenue from brokerage transactions on a net basis, representing only the commission or fee earned. The transfer of control of the boat in brokerage transactions occurs directly between the seller and the buyer, and we do not obtain control at any point in the transaction.

We recognize customer deposits as revenue at the time of acceptance and the transfer of control to the customers. Total customer deposits of $2,350,219 recorded as of December 31, 2024 were recognized in revenue during the three months ended March 31, 2025.Total customer deposits of $2,676,435 recorded as of December 31, 2023 were recognized in revenue during the fiscal year ended December 31, 2024.

We recognize deferred revenue from service operations, maintenance and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met.

Revenue from arranging financing, insurance and extended warranty contracts to customers through various third-party financial institutions and insurance companies is recognized when the related boats are sold. We are acting as an agent in the transaction; therefore, the commissions are recorded on a net basis. Subject to our agreements and in the event of early cancellation, prepayment or default of such loans or insurance contracts by the customer, we may be assessed a chargeback for a portion of the commission paid by the third-party financial institutions and insurance companies. We reserve for these chargebacks based on our historical experience with repayments or defaults. Chargebacks were not material to the combined financial statements for the three months ended March 31, 2025.

We also finance our customers' boat and yacht purchases. Interest income is recognized in profit or loss as it is incurred, based on the time for alienation of right to use capital and effective interest rates. Interest income includes the amortization of any discount or premium or differences between the initial carrying amount of an interest-bearing asset and its amount at maturity calculated using the effective interest rate. The interest-bearing assets related to these financing arrangements are recorded within 'private label receivables' in Note 4 of the Notes to Combined Financial Statements. The income should be recognized when the Company's performance obligation in the contract is fulfilled, which refers the revenue is recognized when the customer obtains the control right of relevant goods or services. To obtain the right of control over related goods or services means to be able to dominate the use of such goods or the provision of such services and obtain almost all economic benefits therefrom.

Net revenue by category:

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| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2025** | **2024** |
| New Boats Sales | 5518110 | 6481055 |
| Pre-owned Boat Sales | 21058418 | 13562331 |
| Finance Income – Azure | 606225 | 700089 |
| Service, Parts & Other Sales | 56029 | 88374 |
| Total Combined Revenue | 27238782 | 20831849 |

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***Inventory, net***

Inventories primarily consist of new and pre-owned boats, including yachts, that are held for sale in the ordinary course of business. These inventories are acquired through two primary channels: (i) direct purchases from manufacturers and vendors, and (ii) trade-ins from customers as part of boat sales transactions. The inventory acquired through trade-ins is initially measured and recognized based on the estimated future selling price of the boat, less a gross profit amount to be realized when the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale.

Inventories are stated at the lower of cost or net realizable value. The cost of the new and pre-owned boat inventory is determined using the specific identification method. In assessing lower of cost or net realizable value, the Company considers the aging of the boats, historical sales of a brand and current market conditions. Parts and accessories are determined using methods which vary by subsidiary and include both the average cost method and first-in, first-out ("FIFO"). As of December 31, 2024 and 2023, the amount of parts and accessories was immaterial.

*Goodwill*

We account for acquisitions in accordance with FASB ASC 805, "Business Combinations" ("ASC 805"), and goodwill in accordance with ASC 350, "Intangibles — Goodwill and Other" ("ASC 350"). For business combinations, the excess of the purchase price over the estimated fair value of net assets acquired in a business combination is recorded as goodwill. In accordance with ASC 350, we test goodwill impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairment test is performed during the third fiscal quarter. If the carrying amount of a reporting unit's goodwill exceeds its fair value we recognize an impairment loss in accordance with ASC 350. Based upon our most recent analysis, we determined through our qualitative assessment that it is not "more likely than not" that the fair values of our reporting units are less than their carrying values. As a result, we were not required to perform a quantitative goodwill impairment test.

The qualitative assessment requires us to make judgments and assumptions regarding macroeconomic and industry conditions, our financial performance, and other factors. We do not believe there is a reasonable likelihood that there will be a change in the judgments and assumptions used in our qualitative assessment which would result in a material effect on our operating results.

*Impairment of Long-Lived Assets*

Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will affect the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amounts of those assets are depreciated over their remaining useful life. For the periods presented, we have not recorded any material impairment.

*Recent Accounting Pronouncements*

Recently issued accounting pronouncements not yet adopted

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to combined financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the combined financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in our combined financial statements once adopted. We are currently evaluating the provisions of this ASU.

In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements related to accounting for the settlement of a debt instrument as an induced conversion. The amendments in this update are effective for annual reporting periods beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this guidance on our combined financial statements.

Recently adopted accounting pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this ASU retrospectively on December 31, 2024. Refer to Note 18 in the combined financial statements, Segment Reporting and Information about Geographic Areas for the inclusion of the new required disclosures.

***Internal Control Over Financial Reporting***

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. GAAP. Under standards established by the Public Company Accounting Oversight Board, or PCAOB, a deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or personnel, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. The PCAOB defines a material weakness as a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of annual or interim financial statements will not be prevented, or detected and corrected, on a timely basis.

We are in the process of implementing measures designed to improve our internal control over financial reporting to remediate these material weaknesses. The Company's plan to remediate the material weaknesses in its internal control over financial reporting includes utilizing a portion of the working capital from its initial public offering to increase staffing within its finance department sufficient to facilitate proper segregation of accounting functions and to enable appropriate review of its internally prepared financial statements. In addition, the Company plans to retain outside consultants, expert in, and specializing in SEC reporting for public company registrants.

**Emerging Growth Company**

The JOBS Act permits an emerging growth company such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. We have elected to avail ourselves of the extended transition period for complying with new or revised financial accounting standards.

We will remain an emerging growth company until the earliest of (i) the last day of our first fiscal year in which we have total annual gross revenues of $1.07 billion or more; (ii) the date on which we are deemed to be a "large accelerated filer" under the rules of the SEC with at least $700.0 million of outstanding equity securities held by non-affiliates; (iii) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the previous three years; or (iv) the last day of our fiscal year following the fifth anniversary of the date of the completion of this offering.

**Quantitative and Qualitative Disclosures About Market Risk**

As a smaller reporting company, we are not required to provide disclosure regarding quantitative and qualitative market risk.

**BUSINESS**

**Overview**

We are a premier yacht and boat dealership specializing in the buying, selling, and wholesaling of yachts and boats. Founded in 2012 by Jason Ruegg, OTHYS has grown into the largest marine wholesaler in the industry, recognized for its innovation, expertise, and expansive operations. Over the past decade, we believe OTHYS has become a nationally recognized leader in the marine industry, earning numerous accolades. The company has been named one of the 500 fastest-growing companies in the United States by Inc. 500 and is consistently ranked as a Top 100 Dealer in the USA by Boating Industry, a magazine for boating professionals. Today, OTHYS generates over $90 million in annual boat and yacht sales, operating across eight locations with a team of 35 sales representatives who transact on more than 400 vessels each year. The company's success is built on a commitment to excellence, emphasizing the hiring of highly skilled professionals who embody integrity and a passion for the boating industry. By prioritizing relationship-building and ensuring client satisfaction, we believe OTHYS has established itself as a trusted leader in the market.

**Corporate Structure and Background**

In connection with our initial public offering, we will reorganize our corporate structure as follows:

● Off the Hook Yacht Sales NC, LLC, a North Carolina limited liability company;

● Azure Funding, LLC, a North Carolina limited liability company; and

● OTH Simon Marine YF LLC, a North Carolina limited liability company.

● $600,000 paid in cash as a non-refundable deposit upon the execution of the Amended SPA; and

● the balance of $2.4 million shall be payable at the closing under the Amended SPA, which shall occur upon, among other things, the Company's registration statement on form S-1 being declared effective by the Securities and Exchange Commission.

● the Transferred Securities will not be registered in this offering and will be locked up pursuant to the lock-up agreements for 180 days following the closing of this offering.

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**Our Products and Services**

OTHYS offers a comprehensive range of products and services designed to meet the needs of buyers, sellers, and industry partners across the marine sector. Through its integrated business model, OTHYS provides a seamless experience for customers, leveraging its expertise in yacht and boat sales, financing, servicing, and asset recovery.

**1. Yacht & Boat Sales**

OTHYS specializes in the buying, selling, and wholesaling of yachts and boats, offering a diverse selection of pre-owned vessels across various price points and categories through OTHYS NC. Customers can choose from a curated inventory of sportfish, center consoles, motor yachts, and high-performance boats. The company's ability to acquire boats at competitive prices allows it to pass value on to buyers while providing sellers with a fast, hassle-free transaction.

**2. New Boat Sales**

In addition to the pre-owned market, OTHYS is expanding into new boat sales, offering customers access to premier boat brands through dealership partnerships. This expansion enhances OTHYS's ability to serve a broader clientele while strengthening relationships with top manufacturers.

**3. WeBuyBoats.com – Instant Boat Offers**

OTHYS NC owns and operates WeBuyBoats.com, a fast and efficient platform designed to provide boat owners with immediate cash offers. This service simplifies the selling process, allowing customers to liquidate their boats quickly without the hassle of traditional listings or lengthy negotiations. By utilizing proprietary valuation tools and market data, OTHYS ensures fair and competitive offers.

**4. Financing Solutions – Azure Funding**

Through Azure Funding, an indirect wholly owned subsidiary of OTHYS, OTHYS provides a range of financing options for recreational boat buyers. Whether customers need traditional boat loans, short-term lending, or alternative financing solutions, Azure Funding offers tailored options to meet their needs. Additionally, OTHYS provides financing services to industry partners, including dealerships and brokerages.

Azure Funding partners with a range of financial institutions to provide recreational loan brokerage services. These institutions include both national and specialized lenders. Current partners include: Shore Premier (Centennial Bank parent company), M&T Bank, BMO, RecFi, La Victoire (Axos Bank parent company), Medallion Bank, U.S. Bank, Grasshopper Bank, Fifth Third Bank, Bank OZK, Merrick Bank, Truist, and LightStream.

Azure Funding's conventional loan brokerage process begins when a lead is sourced through dealerships, direct borrower inquiries, or broader marketing efforts. Borrowers submit a loan application online and are promptly paired with a dedicated loan officer. The loan officer works closely with Azure Funding's in-house processing team to collect and review all supporting documentation - including income verification, identification, and collateral details. Azure then matches the borrower with the most suitable lender(s) from its partner network, based on credit profile, loan terms, and underwriting criteria. Once a lender approves the application, the loan is finalized and funded by the selected institution. Azure facilitates the transaction through closing and communicates directly with both borrower and lender throughout the process.

Azure Funding's conventional loan brokerage process begins when a lead is sourced through dealerships, direct borrower inquiries, or broader marketing efforts. Borrowers submit a loan application online and are promptly paired with a dedicated loan officer. The loan officer works closely with Azure's in-house processing team to collect and review all supporting documentation — including income verification, identification, and boat details. Azure then matches the borrower with one or more suitable lenders from its partner network, based on credit profile, loan terms, and underwriting criteria. Once a lender approves the application, the loan is finalized and funded by the selected institution. Azure facilitates the transaction through closing and communicates directly with both borrower and lender throughout the process.

Azure Funding operates in a competitive market for recreational financing services. Azure Funding competes with a range of institutions, including banks, credit unions, specialty recreational lenders, and other loan brokers. Competition is generally based on factors such as approval speed, borrower experience, rate structures, and dealer relationships. Azure Funding maintains a competitive position by partnering with many of the banks that actively participate in recreational lending, and by leveraging strong dealership relationships, including OTHYS, to source and support borrower activity.

Azure Funding's customers are primarily individual buyers seeking financing for new or pre-owned recreational assets. Most borrowers fall within conventional credit parameters and are purchasing these assets for personal, non-commercial use. Loan amounts and credit profiles vary, but the majority of customers are middle- to upper-income individuals financing premium recreational vessels.

**5. Servicing & Maintenance – OTH Yacht Services**

OTHYS offers comprehensive marine servicing and maintenance through OTH Yacht Services, a service center owned and operated by OTHYS NC, ensuring that every vessel remains in peak condition. Services include routine maintenance, repairs, detailing, and mechanical inspections, providing customers with a one-stop solution for their boating needs.

**6. Asset Recovery & Repossession – Marine Asset Recovery (MAR)**

Through Marine Asset Recovery (MAR), a marine asset recovery unit owned and operated by OTHYS NC, assists financial institutions and lenders with boat repossessions and asset recovery services. This division specializes in reclaiming and reselling marine assets efficiently, feeding recovered boats back into OTHYS's inventory for resale. This seamless process maximizes value for all parties involved.

 **7. Warranties & After-Sale Services (Upcoming Initiative)**

To further enhance the customer experience, OTHYS is developing a warranty sales program that will offer buyers additional coverage and peace of mind. These warranties will provide protection against unexpected repair costs, ensuring long-term satisfaction and confidence in each purchase.

 **8. Marina Acquisitions & Storage Solutions**

OTHYS will actively invest in marina acquisitions to offer premium docking, storage, and servicing locations. By owning and operating marinas, OTHYS will provide a full-service experience, integrating boat sales, maintenance, and storage under one umbrella.

**Delivering Value Across the Marine Industry**

With its diverse portfolio of products and services, OTHYS stands as a one-stop solution for the boating community. Whether buying, selling, financing, servicing, or storing a vessel, customers can rely on OTHYS's expertise and industry-leading customer service. By continuously expanding its offerings and enhancing operational efficiency, OTHYS remains at the forefront of the marine industry, delivering unmatched value to its clients and partners.

**Planned Waterfront Marina and Service Center.** We are seeking to locate a waterfront location to store, service, and showcase our inventory in Florida. We believe direct water access will allow us to more efficiently showcase, store, and service our inventory. We are working with real estate agents and local contacts to locate a property that has direct water access to the Intracoastal waterways. Access to the waterways would allow for immense time savings when servicing, storing, and showcasing boats in our inventory. Once it is fully operational, we expect our planned waterfront Marina and Service Center will employ 10 to 20 people in the first year. Over the next several years, we expect that our waterfront property will add additional employees every year as its operation grows.

**Our Suppliers & Industry Partnerships**

We work with a diverse network of suppliers, manufacturers, and industry partners to ensure a steady inventory of high-quality yachts and boats. These relationships allow OTHYS to maintain a competitive edge, offering customers a wide selection of vessels at the best possible prices while ensuring access to premium parts, servicing, and financing solutions.

**1. Boat & Yacht Manufacturers**

OTHYS sources boats from a variety of leading manufacturers and OEMs (Original Equipment Manufacturers), ensuring a diverse inventory that includes sportfish, center consoles, motor yachts, and high-performance vessels. Strong relationships with manufacturers enable OTHYS to secure exclusive deals on new and pre-owned boats, giving customers access to high-demand brands at competitive prices.

**2. Dealer & Broker Partnerships**

As part of its wholesale and brokerage operations, OTHYS collaborates with dealers, independent brokers, and marine resellers across the industry. These partnerships help facilitate inventory movement, ensuring that OTHYS can quickly source boats for customers while offering an efficient resale channel for sellers. By working with a nationwide network of industry professionals, OTHYS maximizes inventory turnover and enhances market liquidity.

For example, pursuant to the Authorized Dealer Agreements with Yellowfin, dated May 5, 2025, Off the Hook Yacht Sales NC, LLC is the exclusive dealer of Yellowfin from Miami to Islamorada and North Carolina. Under the agreements, Yellowfin grants Off the Hook Yacht Sales NC, LLC the exclusive right to promote and sale its products within the designated market area and may offer a floor plan payment option for certain products. The initial term of the agreement is one year, automatically renewing for successive one-year periods unless otherwise terminated. In addition, pursuant to the Nor-Tech Hi-Performance Boats Sales & Dealership Agreement with Nor-Tech, Off the Hook Yacht Sales NC, LLC is the dealer of Nor-Tech in North and South Carolina. Pursuant to the agreement, Nor-Tech appoints Off the Hook Yacht Sales NC, LLC as a non-exclusive authorized dealer of the "Nor-Tech" brand offshore high-performance powerboats and related products, for an initial term of one year.

**3. Floorplan & Lending Institutions**

OTHYS works closely with floorplan lenders and financial institutions to support boat acquisitions and financing operations. By leveraging strong relationships with financing partners, OTHYS is able to expand inventory access while providing buyers with tailored financing solutions. Azure Funding, the company's in-house financing arm, also maintains partnerships with major lenders, ensuring competitive loan offerings for customers.

**4. Marine Servicing & Parts Suppliers**

To support OTH Yacht Services, the company partners with leading marine servicing and parts suppliers, ensuring access to OEM parts, aftermarket components, and repair services. These relationships enable OTHYS to maintain its servicing capabilities, offering customers a reliable solution for maintenance, upgrades, and repairs.

**5. Auction & Asset Recovery Partners**

OTHYS collaborates with lenders, financial institutions, and repossession agencies through its Marine Asset Recovery (MAR) division, helping recover and resell marine assets efficiently. These partnerships allow OTHYS to source inventory from repossessions, providing a steady supply of boats for resale while assisting financial partners in managing defaulted assets.

**6. Marinas & Storage Facilities**

As part of its expansion into marina acquisitions, OTHYS is developing partnerships with marina operators, dry storage facilities, and docking service providers. These partnerships ensure that customers have access to convenient storage and service options, further enhancing the post-sale experience.

**Our Sales Network**

OTHYS partners with dealers through wholesale purchases, direct sales, trade-in programs, and financing options. Dealers within the network may qualify for floorplan financing programs that provide liquidity for inventory purchases, trade-in and resale programs to help customers upgrade to newer models, access to distressed and repossessed inventory through Marine Asset Recovery (MAR), and marketing and lead generation support through OTHYS's proprietary CRM and data analytics platform. OTHYS's nationwide dealer network benefits from fast inventory turnover, high-quality wholesale sourcing, and a seamless resale process, making it a preferred partner in the marine industry.

OTHYS utilizes data-driven insights and market analysis to monitor dealer performance and identify opportunities for growth. The company consistently evaluates its distribution network to enhance regional coverage, strengthen dealer relationships, and optimize sales volume. Through market intelligence and demand forecasting, OTHYS ensures that inventory is strategically allocated to the right markets, maximizing efficiency and profitability.

Unlike traditional manufacturers with rigid dealership contracts, OTHYS maintains flexible wholesale arrangements that allow dealers to purchase inventory based on market demand. Dealers are not contractually required to purchase a set number of boats but instead work with OTHYS to acquire and sell inventory based on real-time market conditions. This agile approach helps avoid excess inventory while ensuring a steady flow of boats into the market.

We remain committed to strengthening its dealer relationships through continuous expansion into new markets, exclusive access to high-value inventory through its acquisition channels, enhanced technology integration for better dealer operations and lead management, and strategic partnerships with financial institutions to provide seamless financing solutions. By maintaining a strong and dynamic dealer network, OTHYS continues to be a leader in the wholesale and retail boat sales industry, offering unmatched access, efficiency, and profitability for its dealer partners.

**Floorplan Financing**

We utilize floorplan financing to support our inventory acquisition strategy, enabling the company to purchase and hold a diverse range of boats and yachts while maintaining liquidity. Floor plan financing is a short-term inventory loan provided by third-party lenders that allows OTHYS to finance boat purchases without tying up significant working capital. This financing structure enables OTHYS to acquire boats at scale, ensuring a steady inventory supply to meet market demand.

The Company's current floorplan financing is personally guaranteed by our President, Jason Ruegg, including a lien on his personal residence. While this structure has supported growth to date, it imposes a natural cap on our appetite for risk and limits our ability to fully leverage available financing. Upon completion of this Offering, we intend to remove the personal guarantee, secure low-interest floorplan financing and utilize institutionally backed credit facilities. This shift is expected to significantly expand our borrowing capacity—targeting $50 million or more in floorplan financing by 2026—which will enable OTHYS to pursue larger inventory acquisitions and strategic expansion without the constraints of personal risk exposure. There can be no assurance that such alternate financing will be available on terms acceptable to us. We believe this transition is a key catalyst for unlocking the next phase of scalable growth and market leadership.

Through established partnerships with leading floorplan financing providers, OTHYS can efficiently manage its inventory and optimize sales cycles. When boats are purchased using floor plan financing, the floor plan lender advances the purchase funds directly, allowing OTHYS to acquire and hold boats until they are resold. Upon sale, the loan is repaid, and capital is freed up to acquire new inventory, ensuring a continuous and profitable turnover of assets.

By leveraging floor plan financing, we maximize operational efficiency, expands inventory capacity, and ensures a steady pipeline of high-quality boats for resale. The company remains committed to strategic financing partnerships that support growth while maintaining financial flexibility and risk management.

**Strengthening the Marine Industry Through Strategic Partnerships**

OTHYS's supplier and partner relationships are integral to its ability to offer a seamless, full-service experience to customers. By working with manufacturers, dealers, lenders, servicing providers, and asset recovery specialists, OTHYS ensures that its inventory remains strong, diverse, and competitively priced. These partnerships not only fuel business growth but also position OTHYS as a leader in the marine industry, capable of adapting to market trends and delivering value to buyers and sellers alike.

**Our Market Opportunity**

The marine industry presents a significant and expanding market opportunity for OTHYS. We operate in the pre-owned yacht and boat sales market, with a growing presence in new boat sales, brokerage, financing, servicing, and asset recovery. OTHYS' addressable market includes a wide range of boat categories, including center consoles, sportfish yachts, motor yachts, high-performance boats, and luxury vessels.

The U.S. recreational boating industry continues to experience strong growth, with annual sales of boats, marine products, and services totaling approximately $56.7 billion in 2022, according to the National Marine Manufacturers Association (NMMA). In recent years, pre-owned boat sales have consistently outpaced new boat sales, reflecting a shift in consumer preferences toward high-quality used boats at more competitive price points. We believe that this trend positions OTHYS as a key player in the growing secondary market.

&nbsp;&nbsp;&nbsp;&nbsp;1. **National Marine Manufacturers Association (NMMA) 2023 Pre-Owned Boat Market Sales Trends Report**:
 This report indicates that in 2023, pre-owned boat sales accounted for 78.2% of total boat
 sales, totaling 940,496 units.

&nbsp;&nbsp;&nbsp;&nbsp;2. **NMMA 2023 U.S. Statistical Abstract: Powerboat Sales Trends Report**: According to this report, new powerboat unit sales declined by 6.8%
in 2023, totaling 176,643 units.

In 2024, the recreational boat industry experienced a notable softening, with new powerboat retail unit sales declining by 9.1% year-over-year to approximately 231,576 units. This slowdown was driven by macroeconomic pressures, including high interest rates and cautious consumer spending, which dampened demand for big-ticket discretionary items such as boats. Additionally, the median age of current boat owners in the U.S. reached 60 years by the end of 2024, with more owners in their 70s than in their 40s, indicating an aging customer base.

Despite the overall decline, certain segments, such as freshwater fishing boats, remained stable, with sales expected to remain flat compared to 2023. Looking ahead, the industry anticipates a return to growth in 2025, driven by innovative new products, changes in U.S. economic policies, and consistent consumer demand for on-water experiences.

These figures demonstrate that pre-owned boat sales have consistently represented a significant majority of the market, reflecting a shift in consumer preferences toward high-quality used boats at more competitive price points.

Additionally, the NMMA reported that total U.S. recreational boating sales, including boats, marine products, and services, exceeded $50 billion in recent years. We believe OTHYS is well-positioned to capitalize on these trends as demand for competitively priced, high-quality used boats remains strong.

**1. U.S. Recreational Boating Industry Annual Sales**

According to the National Marine Manufacturers Association (NMMA), the recreational boating industry is a significant contributor to the U.S. economy. In 2022, the NMMA reported that annual U.S. sales of boats, marine products, and services totaled $59.3 billion, marking a 4.4% increase from 2021. This growth underscores the industry's robust performance and its role in the broader outdoor recreation economy.

**2. Pre-Owned Boat Unit Sales Outpacing New Boat Sales**

According to the National Marine Manufacturers Association (NMMA), pre-owned boat sales in 2021 reached approximately 1.15 million units, marking a 9.2% increase over 2020. The total market value of these pre-owned boats was $13.6 billion, reflecting a 4.6% increase from the previous year. This growth underscores the continued consumer preference for high-quality used boats at more competitive price points.

In contrast, new boat sales for the same period were 305,734 units, totaling $20.8 billion. This represents a 4.1% decrease in units sold compared to 2020, yet the dollar value increased by 3.8%, indicating a rise in average unit prices.

Several market trends are driving expansion in OTHYS's addressable market, including:

● Increased demand for pre-owned boats: The rising cost of new boats and supply chain constraints have fueled higher demand for pre-owned inventory, benefiting OTHYS's wholesale and resale model.

● Growth in center console and offshore fishing boats: The center console segment has become one of the fastest-growing categories in the boating industry, as more buyers seek versatile, multi-purpose boats suited for both fishing and recreation.

● Rising participation in recreational boating: The post-pandemic surge in outdoor activities has led to record-high participation in recreational boating, with new buyers entering the market at unprecedented rates. This shift has expanded the customer base for both entry-level and high-end vessels.

● Technological advancements driving resale demand: Innovations in marine technology, such as improved fuel efficiency, onboard automation, and digital navigation systems, have shortened product cycles and increased the resale value of late-model boats, strengthening the pre-owned sales market.

● Shifting demographics and lifestyle preferences: Younger generations are increasingly entering the boating market, driving demand for affordable, high-quality used boats. Additionally, high-net-worth buyers are investing in larger, luxury yachts as part of a growing trend in high-end leisure experiences.

● Financial accessibility and alternative lending solutions: The expansion of boat financing and alternative lending options, including hard money loans through Azure Funding, has made boat ownership more accessible to a wider audience, further expanding OTHYS's potential customer base.

● Expansion of online sales and digital marketplaces: The shift toward digital transactions and online boat sales platforms has created new opportunities for OTHYS to capture market share through WeBuyBoats.com, its brokerage network, and auction platform initiatives.

With a vertically integrated business model that spans wholesale, retail, financing, servicing, and repossession, OTHYS believes that it is uniquely positioned to capitalize on these trends and expand its footprint in the growing marine industry. As demand for pre-owned and new boats continues to rise, OTHYS stands at the forefront of this market opportunity, leveraging its expertise, nationwide network, and operational scale to drive sustained growth

**Industry Overview**

In the United States, there are approximately 11.96 million registered recreational vessels, with 11.1 million being mechanically propelled, according to the U.S. Coast Guard's 2023 data. The global recreational boating market was valued at USD 30.95 billion in 2024 and is projected to grow at a CAGR of 3.40%, reaching USD 43.24 billion by 2034, according to Insurance Journal.

Within the boating market, segments such as outboard motorboats and electric boats are experiencing notable growth. Our products are designed to cater to both these segments, and our planned electric powertrains will be utilized in boats across these categories.

The marine industry continues to experience steady growth, driven by increased participation in recreational boating, evolving consumer preferences, and expanding financing options. In North America, over 100 million people go boating annually, with 12 million recreational vessels registered in the United States alone, according to the U.S. Coast Guard. The global recreational boating market is projected to surpass $65 billion by 2026, fueled by strong demand for both new and pre-owned boats, as well as growth in financing and service-related offerings.

<u>The Pre-Owned Boat Market & Wholesale Growth</u>

While new boat sales capture significant attention, the pre-owned boat market represents a major segment of the industry, with transactions often outpacing new sales. The affordability and availability of late-model, well-maintained used boats make this segment highly attractive to consumers. Additionally, wholesale transactions and dealer-to-dealer sales have increased, creating new opportunities for businesses specializing in quick-turn inventory acquisition, trade-ins, and repossession resales.

<u>Luxury & Performance Yacht Demand</u>

The high-end yacht market continues to expand, driven by strong economic conditions, rising wealth, and increased interest in premium leisure experiences. Buyers in this segment demand high-performance center consoles, sportfish yachts, and motor yachts, creating a thriving resale market for well-maintained luxury vessels. Additionally, the rise of yacht chartering and shared ownership programs has influenced the demand for specific yacht types, further shaping the resale landscape.

<u>Financing & Accessibility in the Boating Industry</u>

With more consumers turning to financing to fund boat purchases, we believe the availability of flexible loan options, floorplan financing for dealerships, and alternative lending solutions has played a critical role in industry growth. Lenders and financial institutions are increasingly active in marine financing, supporting buyers across all price points. Companies that offer in-house financing solutions, like OTHYS through Azure Funding, are well-positioned to capture additional revenue streams while simplifying the buying process for consumers.

<u>Key Trends Driving Industry Growth</u>

● Increased recreational boating participation – Boating has become an increasingly popular lifestyle activity, with first-time boat buyers making up a growing percentage of overall sales.

● Rising disposable income & improved standard of living – The demand for both new and pre-owned boats has been fueled by economic growth and increased discretionary spending.

● Shift toward larger, more powerful boats – Consumers are moving toward high-performance vessels, particularly in the center console, offshore fishing, and luxury yacht segments.

● Growing secondary market & trade-in volume – More boat owners are trading in vessels for newer models, increasing the availability of pre-owned inventory.

● Technology advancements – Innovations in fuel efficiency, onboard automation, and propulsion systems have increased consumer interest in late-model used boats and alternative power options.

● Expansion of financing & lending solutions – Greater access to marine loans, hard money lending, and flexible financing options has made boat ownership more accessible.

● Increased focus on digital sales platforms – The rise of online boat sales, auction platforms, and digital marketplaces has transformed how boats are bought and sold, increasing transparency and transaction speed.

1. Increased Recreational Boating Participation

Between 2020 and 2022, the U.S. experienced a significant influx of new boaters and first-time boat buyers, as Americans turned to the water for leisure and well-being. NMMA

2. Rising Disposable Income & Improved Standard of Living

Recreational boating is not exclusive to high-income individuals; in fact, 61% of boat owners have an annual household income of $100,000 or less, indicating that boating is accessible to a broad demographic. NMMA

3. Shift Toward Larger, More Powerful Boats

Consumer preferences have shifted toward larger, high-performance vessels, particularly in the center console and offshore fishing segments. Innovations in these categories have led to boats with features traditionally found on much larger designs. NMMA

4. Growing Secondary Market & Trade-In Volume

The pre-owned boat market remains robust, with detailed data available in the NMMA's U.S. Recreational Boating Statistical Abstract, which covers trends in the retail and pre-owned markets. NMMA+1NMMA+1

5. Technology Advancements

Over the past two decades, the recreational boating industry has achieved a more than 90% reduction in emissions and a 40% increase in fuel efficiency, reflecting significant technological advancements. NMMA

6. Expansion of Financing & Lending Solutions

The availability of flexible loan options and alternative lending solutions has played a critical role in industry growth, making boat ownership more accessible across various price points.

7. Increased Focus on Digital Sales Platforms

The rise of online boat sales and digital marketplaces has transformed how boats are bought and sold, increasing transparency and transaction speed.

**Our Business Strategy**

We are executing a dynamic growth strategy focused on capital expansion, operational scaling, and an integrated business model that maximizes profitability across multiple revenue streams.

The Company's current floorplan financing is personally guaranteed by our President, Jason Ruegg, including a lien on his personal residence. While this structure has supported growth to date, it imposes a natural cap on our appetite for risk and limits our ability to fully leverage available financing. Upon completion of this Offering, we intend to remove the personal guarantee, secure low-interest floorplan financing, and utilize institutionally backed credit facilities. This shift is expected to significantly expand our borrowing capacity—targeting $50 million or more in floorplan financing by 2026—which will enable OTHYS to pursue larger inventory acquisitions and strategic expansion without the constraints of personal risk exposure. We believe this transition is a key catalyst for unlocking the next phase of scalable growth and market leadership.

<u>1. Purchase Discounted Boats to Wholesale</u>

A fundamental pillar of our strategy is leveraging shifts in supply and demand to acquire boats at discounted rates. Many new boat dealerships are overstocked and lack floorplan capital, forcing them to turn away used boat trade-ins and manufacturer offers, creating an opportunity for OTHYS to purchase inventory at below-market prices. Increasing purchasing power will allow OTHYS to turn inventory four to five times annually while maintaining high profit margins. After this Offering, we expect to reduce reliance on high-interest floorplan financing and secure low-interest floorplan financing, which will further enhance profitability and increase margins from the current 15–20% range.

<u>2. Capital Expansion & Floorplan Growth</u>

By expanding floorplan financing from $10–12MM to $50MM+ by 2026, OTHYS expects to have the liquidity to hold inventory longer, eliminating premature liquidations and allowing for more strategic acquisitions. This increase in capital is intended to remove prior constraints tied to personal risk tolerance and provide the flexibility needed to secure high-value boats at optimal pricing.

<u>3. Scaling OTHYS & WeBuyBoats.com</u>

We believe that OTHYS and WeBuyBoats.com are positioned to become the "CarMax" of the used boat industry, offering a seamless, hassle-free experience for customers looking to sell their boats. Webuyboats is a website owned by OTHYS NC. Proprietary software will streamline transactions by matching buyers with sellers, while an integrated auction platform will provide additional liquidity for customers and aged inventory. These innovations will increase efficiency, improve customer experience, and drive higher transaction volumes.

<u>4. Strengthen Market Position with Dealership Acquisitions</u>

Strategic acquisitions of underperforming dealerships will further expand OTHYS' market presence. By acquiring struggling dealerships at discounted valuations, OTHYS can integrate them into its synergistic business model and position them for long-term success. This will enable us to scale operations while improving dealership profitability.

<u>5. Invest in Marina Acquisitions to Enhance Operations</u>

Acquiring marinas in key locations will strengthen OTHYS' infrastructure by consolidating operations, reducing storage and docking costs, and creating exclusive service hubs for customers. These marinas will serve as strategic assets, offering additional revenue streams through leasing, storage, and premium service options, further reinforcing OTHYS's market dominance.

<u>6. Integrated Ecosystem & Revenue Diversification</u>

The expansion of OTHYS's ecosystem will generate multiple revenue streams from each boat transaction, including financing, warranties, and hard money lending. Marine Asset Recovery (MAR) will handle repossessions for defaulted loans, seamlessly reintegrating repossessed inventory into OTHYS' sales channels. This closed-loop system is designed to ensure profitability at every stage of the transaction cycle, creating an advantage that traditional banks and independent dealerships cannot replicate.

<u>7. Advance Technology with Enhanced CRM & Data Analytics</u>

Investments in OTHYS's proprietary CRM system will optimize sales processes, enhance decision-making, and improve overall operational efficiency. By leveraging data-driven insights, the Company can refine inventory management, improve customer targeting, and maximize return on investment. Automation and predictive analytics will further streamline workflow, creating a more agile and scalable business model.

<u>8. Expand Financing Capabilities with Hard Money Lending</u>

As traditional banks tighten lending criteria, demand for alternative financing solutions continues to grow. Azure Funding's hard money lending program will expand to capitalize on this trend, providing flexible financing options to both retail customers and industry partners. This initiative will strengthen OTHYS' ability to serve a broader range of clients while generating additional high-margin revenue.

<u>9. Scale Repossession and Asset Recovery Infrastructure</u>

Expanding Marine Asset Recovery (MAR) will enable OTHYS to handle a significantly higher volume of repossessions, with the capacity to process hundreds of recovered vessels per month. These repossessed boats will be stored, serviced, and ultimately resold through OTHYS' established channels, maximizing asset recovery values while reinforcing the company's competitive position.

<u>10. Optimize Capital Structure to Reduce Reliance on Floorplan Financing</u>

By raising additional capital, OTHYS will increase its purchasing power while reducing reliance on high-interest floorplan financing. This shift will lower financing costs, improve cash flow, and provide greater flexibility in pricing strategy. The ability to purchase inventory outright will enhance profitability and market agility, ensuring OTHYS remains ahead of industry trends.

<u>11. Expand Nationwide Broker Network and Physical Locations</u>

Scaling operations to 365+ brokers and wholesalers by 2026 will drive inventory turnover and significantly increase brokerage sales. In addition, expanding the physical footprint with new locations in high-demand regions will enhance accessibility for customers and further solidify OTHYS' presence in key markets. This will fuel wholesale, and our finance arm Azure Funding provides boat loans to customers which in turn fuels wholesale. The Company currently has no arrangements to acquire any other entities.

<u>12. Strengthen Brand and Marketing Presence</u>

Increasing marketing efforts will play a crucial role in expanding OTHYS' customer base. A combination of enhanced digital marketing, lead generation, and traditional advertising will drive brand awareness and lead conversion. Strengthening the Company's online presence and platform capabilities will further attract high-value buyers and sellers, reinforcing OTHYS' position as a premier yacht and boat dealership.

<u>13. Increase New Boat Sales Through Strategic Acquisitions</u>

Acquiring a new boat dealership generating $65–75MM annually will establish OTHYS as a major player in the new boat sales market. This acquisition will expand relationships with manufacturers, allowing OTHYS to diversify its inventory while tapping into an additional high-margin revenue stream. We currently do not have any definitive agreements in place.

<u>14. Launch New High-Margin Services</u>

The introduction of warranty sales and auction services will create new revenue opportunities while enhancing customer retention. These offerings will provide additional financial security for buyers while enabling OTHYS to monetize inventory through multiple sales channels. By adding these services, OTHYS will further differentiate itself from competitors and strengthen its comprehensive service model.

OTHYS plans to launch a premium yacht brokerage division focused exclusively on the high-end segment of the market. This new division will feature luxury yacht inventory, experienced brokers specializing in premium transactions, and select partnerships with prestigious boat brands. By establishing a dedicated platform for high-value clients, OTHYS intends to expand its market reach, capture higher-margin sales, and further elevate its brand positioning within the marine industry.

We intend to launch our proprietary online auction platform within the next three months. This platform will serve as a centralized marketplace for banks to liquidate repossessed inventory, dealers to offload stale units or trade-ins, and for OTHYS to efficiently auction select inventory.

In parallel, we plan to integrate a full suite of support services into the platform, including shipping and logistics coordination, in-house financing through Azure Funding, and optional documentation and escrow services for buyers utilizing Azure. Additionally, the platform will offer advertising opportunities for marine-related service providers—such as insurance agents, surveyors, and transport specialists—creating a comprehensive ecosystem for boat buyers and sellers. We believe this end-to-end infrastructure will provide unmatched convenience and transparency, while positioning OTHYS as the leading digital marketplace in the marine industry.

<u>15. Marina Division</u>

Our marina division intends to make strategic marina purchases across the country, which will give our entities "free" locations to work from. We believe we can build out this model across the USA by contracting boat yards based on their current income, and then getting them permitted for 3-4 boat high dry stack facilities. This turns into passive income for the business, and would give our brokers locations to work out of and facilities for repairs, maintenance and showcase of inventory.

This is very different from our competitors' model where they have very expensive brick and mortar locations that depend almost solely on boat sales to pay the mortgage. Our marinas will have 12-20% cap rates without our boat sales which we believe will make them very good investments for the Company, which will also help fuel boat sales due to there being a captive audience of customers at each location.

**Patents and Licenses**

We do not currently have any patents that have been issued and have one patent application pending related to our CRM inventory control system. We do not rely on any licenses from third parties at this time. There can be no assurance that the pending patent will be issued and even if issued that it will protect our intellectual property rights.

Our success depends, at least in part, on our ability to protect our core technology and intellectual property. To accomplish this, we intend to rely on a combination of trade secrets, including know-how, employee and third-party non-disclosure agreements, copyright laws, trademarks and other contractual rights to establish and protect our proprietary rights in our technology.

**Insurance and Product Warranties**

We carry various insurance policies, including policies to cover general products liability, workers' compensation and other casualty and property risks, to protect against certain risks of loss consistent with the exposures associated with the nature and scope of our operations. Our policies are generally based on our safety record as well as market trends in the insurance industry and are subject to certain deductibles, limits and policy terms and conditions.

We provide limited product warranties, generally covering periods of ten years for the hull and the motors are under warranty by their manufacturer.

In addition, we provide a three-year limited fiberglass small parts warranty on some small fiberglass parts and components, such as consoles. Gelcoat is covered up to one year. Additionally, fiberglass lids, plastic lids, electrical panels, bilge pumps, aerator pumps, or other electrical devices (excluding stereos, depth finders, radar, chart plotters except for installation if installed by OTHYS.), steering systems, electrical panels, and pumps are covered under a one-year basic limited systems warranty. Some materials, components, or parts of the boat that are not covered by our limited product warranties are separately warranted by their manufacturers or suppliers. These other warranties include warranties covering engines purchased from suppliers and other components.

Our standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumer. During the warranty period, we reimburse dealers for all or a portion of the cost of repair or replacement performed by the dealers on the products (mainly composed of parts or accessories provided by us and labor costs incurred by dealers). Although we employ quality control procedures, sometimes a product is distributed that needs repair or replacement. The repair and replacement costs we could incur in connection with a recall could adversely affect our business. In addition, product recalls could harm our reputation and cause us to lose customers, particularly if recalls cause consumers to question the safety or reliability of our products. During the years ended December 31, 2024 and 2023, we paid $16,878 and $12,215 for product warranty repairs.

**Competition**

The yacht and boat sales industry is highly competitive, with numerous players operating across different segments, including wholesale, retail, brokerage, and financing. OTHYS competes with independent dealerships, large national marine retailers, manufacturers with direct sales models, and online marketplaces. The competitive landscape is shaped by factors such as brand reputation, pricing, product availability, financing options, and customer service.

OTHYS competes with both large-scale dealerships and smaller independent brokers. Many large competitors have significant financial and marketing resources, allowing them to operate extensive dealership networks and maintain sizable inventories. Meanwhile, smaller boutique dealers and independent brokers offer highly personalized services and localized market knowledge, competing for the same pool of buyers and sellers. Direct-to-consumer sales from boat manufacturers are also increasing, as some brands bypass traditional dealerships and sell new boats directly to customers.

Beyond industry-specific competition, OTHYS also competes for discretionary consumer spending. Boats and yachts are luxury items, meaning they compete with other high-end purchases such as vacation homes, automobiles, and other recreational activities. During periods of economic uncertainty, consumers may postpone or forgo large discretionary purchases, which can impact overall demand in the boating industry.

Despite these competitive pressures, OTHYS holds a strong advantage through its vertically integrated business model, which includes wholesale, retail, financing, servicing, and repossession services. Unlike traditional dealerships that rely solely on boat sales, OTHYS maximizes revenue opportunities through multiple streams, including Azure Funding (financing), OTH Yacht Services (servicing), and Marine Asset Recovery (repossession and resale). Additionally, OTHYS's nationwide broker network and WeBuyBoats.com platform enable the company to source inventory efficiently, move boats quickly, and serve a broader market than traditional dealerships.

As OTHYS continues to expand, competition will remain a factor in its growth strategy. However, with a strong brand reputation, operational efficiency, and an innovative approach to boat sales and financing, OTHYS is well-positioned to maintain a leading role in the marine industry.

**Environmental, Safety and Regulatory Matters**

The Environmental Protection Agency, or EPA, has adopted regulations stipulating that many marine propulsion engines meet certain air emission standards. The engines used in our products, all of which are manufactured by third parties, are warranted by the manufacturers to be in compliance with the EPA's emission standards. Furthermore, the engines used in our products must comply with the applicable emission standards under the CEPA and corresponding provincial legislation. The additional cost of complying with these regulations has increased our cost to purchase the engines and, accordingly, has increased the cost to manufacture our products.

If we are not able to pass these additional costs along to our customers, it may have a negative impact on our business and financial condition.

OTHYS operates within the marine industry, which is subject to various environmental, safety, and regulatory requirements at both the federal and state levels. As a company engaged in the buying, selling, financing, and servicing of boats and yachts, OTHYS prioritizes compliance with environmental laws and best practices while supporting initiatives that contribute to the sustainability of the boating industry.

1. Environmental Impact & Compliance

The marine industry is increasingly focused on reducing environmental impact, particularly in areas such as emissions, fuel efficiency, and responsible waste disposal. OTHYS ensures that all vessels it sells comply with applicable U.S. Coast Guard (USCG) safety standards, Environmental Protection Agency (EPA) regulations, and state marine conservation laws. Additionally, as emissions regulations evolve, OTHYS continues to work with manufacturers that produce fuel-efficient and lower-emission engines to align with sustainability trends in boating.

2. Marine Conservation & Sustainability Initiatives

As part of its commitment to marine conservation, OTHYS supports industry-wide efforts to promote clean waterways, responsible boating, and eco-friendly vessel maintenance. The company recognizes the importance of sustainable practices in boat servicing and disposal, ensuring that its OTH Yacht Services division follows proper procedures for fluid disposal, hull cleaning, and material recycling to minimize environmental impact.

3. Compliance with Emission & Safety Standards

Vessels sold by OTHYS must comply with federal and state regulations governing emissions, safety, and construction standards. The EPA has implemented regulations requiring marine propulsion engines to meet specific emissions standards, and OTHYS ensures that all boats in its inventory are equipped with compliant engines provided by third-party manufacturers. In addition, the company adheres to standards set by the National Marine Manufacturers Association (NMMA), ensuring that boats meet industry safety and quality certifications.

4. Responsible Asset Recovery & Recycling

Through its Marine Asset Recovery (MAR) division, OTHYS is actively involved in repossession, refurbishment, and resale of vessels, helping extend the lifecycle of boats that may otherwise go unused or be improperly discarded. This approach supports responsible asset management while reducing unnecessary waste in the industry.

5. Regulatory Oversight & Industry Compliance

The company operates in a highly regulated market, with oversight from agencies such as the U.S. Coast Guard (USCG), Environmental Protection Agency (EPA), and state boating regulatory bodies. OTHYS ensures full compliance with these regulations and proactively adapts to any changes in environmental or safety laws.

6. Commitment to a Sustainable Future

OTHYS recognizes the growing importance of environmental responsibility in the marine industry and remains committed to adopting sustainable practices where possible. As the industry moves toward more fuel-efficient engines, eco-friendly maintenance practices, and responsible asset management, OTHYS will continue to align with these efforts while maintaining compliance with all relevant environmental and regulatory standards.

**Company Employees**

We believe we maintain excellent relations with our employees. As of March 31, 2025, we employed 25 people as full-time employees. None of our employees are represented by a labor union and since our founding in 2012, we have never experienced a labor-related work stoppage.

**Facilities**

Our corporate headquarters are located at 1701 Jel Wade Dr, Wilmington NC, 28401. The lease for our headquarters was entered into on September 4, 2024, consists of approximately 7,000 sq ft, and the term of the lease is through March 31, 2030, with an average annual rent of approximately $216,000.

Off The Hook Yacht Sales NC, LLC has entered into a lease agreement with LAS LOAS SMI, LLC, dated May 1, 2025, for approximately 1,125 square feet of office space in Fort Lauderdale, Florida, with a lease term of 60 months. The annual rent is $84,225 for the first year, with an annual increase equal to the greater of 3% or the increase in the Consumer Price Index for each subsequent lease year.

Off The Hook Yacht Sales NC, LLC has entered into a sublease agreement with INDEX MANAGEMENT SERVICES LLC, dated March 13, 2025, for approximately 1,000 square feet of office space in Jupiter, Florida. The lease will continue on a month to month basis until terminated, with the monthly rent of $2,000.

Off The Hook Yacht Sales NC, LLC has entered into a lease agreement with PORT 32 TAMPA, LLC, dated March 18, 2025, for approximately 1,500 square feet of office space in Tampa, FL. The term of the lease is two years, beginning April 1, 2025, with an annual rent of $37,500 for the first year and $39,000 for the second year.

Off The Hook Yacht Sales NC, LLC has entered into a commercial lease agreement with Jel Wade Industrial, LLC, dated August 21, 2024, for approximately 11 acres office and yard space in Wilmington, NC. The lease commenced on September 4, 2024 and will end on August 31, 2029, with an annual rent of $216,000.

The Company also maintains office space in Miami for $7,982.27 a month. In addition, the Company rent slips at the Greenwich Cove Marina, RI for an average of around $1,000 per month during the summer months.

The Company also utilizes virtual offices in Pensacola, FL and Lake Winnipesaukee, NH, which do not involve any physical premises, lease agreements, or rent obligations.

**Legal Proceedings**

From time to time, we may become involved in litigation or other legal proceedings. We are not currently a party to any material litigation or legal proceedings. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

*Carl Austin Rosen v. Off The Hook yacht Sales NC LLC*

Carl Austin Rosen v. Off the Hook Yacht Sales NC, LLC et al (Case No. 2024-004493-CA-01), pending in Miami-Dade's Complex Business Litigation Division, Plaintiff Carl Rosen alleges he was fraudulently induced into purchasing a $2.6 million Yellowfin 54 yacht that had sustained damage during a manufacturer-authorized seatrial prior to delivery. The defendants—Yellowfin Yachts, Off The Hook Yacht Sales, broker Corey Simon, and Warbird Marine Holdings—deny all wrongdoing, maintaining that the grounding was a routine, low-speed "soft grounding" during testing, that any cosmetic damage was promptly repaired, and that the vessel was delivered in seaworthy condition following multiple post-repair inspections and sea trials. The parties plan to actively defend themselves against this claim.

*Republic Bank & Trust Company v. Azure Funding LLC*

Republic Bank & Trust Company filed a lawsuit against Azure Funding, LLC in the U.S. District Court for the Western District of Kentucky, seeking approximately $1.9 million in damages related to three marine loans that went into default. Azure denies all allegations of wrongdoing and specifically asserts that it had no knowledge of any fraud or misrepresentation, acted in good faith, and relied on information provided by the borrowers and third parties. Azure plans to actively defend itself against this lawsuit.

**MANAGEMENT**

**Executive Officers and Directors**

The following table sets forth the name, age as of the date of this prospectus, and position of the individuals who serve as directors and executive officers of the Company. The following also includes certain information regarding the individual experience, qualifications, attributes and skills of our directors and executive officers as well as brief statements of those aspects of our directors' backgrounds that led us to conclude that they are qualified to serve as directors.

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| | | |
|:---|:---|:---|
| Name | Age | Position |
| Executive Officers: |  |  |
| Brian S John | 56 | Chief Executive Officer and Director |
| Jason Ruegg | 36 | President and Chairman of the Board |
| Chad Corbin | 47 | Chief Financial Officer |
| Blake Phillips | 39 | Chief Operating Officer |
| Andrew Simmons | 37 | Executive Vice President and Director |
| Non-Employee Directors: |  |  |
| Mike Kosloske (2)(3)(5) | 61 | Independent Director |
| Mary Reynolds (4)(2)(3) | 41 | Independent Director |
| Jim Segrave (1)(3)(6) | 54 | Independent Director |
| George Jousma (1)(2) | 66 | Independent Director |
| Robert Gonnelli | 70 | Independent Director |

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(1) Member
 of the audit committee

(2) Member
 of the compensation committee

(3) Member
 of the corporate governance and nominating committee

(4) Chair
 of audit committee

(5) Chair
 of compensation committee

(6) Chair
 of corporate governance and nominating committee

***Executive Officers***

**Jason Ruegg, Founder, President and Chairman of the Board –** Jason Ruegg, age 36, combines over 12 years of experience in senior management within the marine industry following an entrepreneurial career that began during college. Previously, he had been involved in multiple ventures within the recreational boating sector, holding positions including Founder, President, and Chairman. Since 2012, Mr. Ruegg has served as Founder and President of Off the Hook Yachts, a national leader in the wholesale and retail pre-owned yacht market. Under his leadership, the company has completed nearly 10,000 transactions and acquired close to $1 billion in used boats and yachts. Off the Hook Yachts has been repeatedly recognized, including being named to the Inc. 500 list of America's Fastest-Growing Companies, consistently ranked among Boating Industry's Top 100 Dealers, and has completed over 5,000 transactions. In addition to leading core operations, Mr. Ruegg founded Azure Funding, a marine finance company, which has grown to over $100 million in annual loans, and has acquired multiple marinas, shipyards, and dry-stack facilities. Mr. Ruegg is also currently a director of Off the Hook YS Inc., a vertically integrated marine retail and finance platform.

**Brian S. John, Chief Executive Officer** – Brian S. John, age 56, combines over 25 years of experience in financial consulting, capital markets, and senior executive leadership, following a career as an investor and advisor to global emerging growth companies. Previously, he had been involved in numerous companies in the financial consulting and consumer products industries, holding positions including Chief Executive Officer, Chairman, and board member. From 2018 through 2023, Mr. John was the Chief Executive Officer of Jupiter Wellness, Inc., a consumer health and wellness company that he took public on NASDAQ in November 2020. In 2021, as CEO of Jupiter Wellness, he acquired SRM Entertainment, which began trading on NASDAQ in August 2023. From 2021 to 2023, he also served as CEO of Jupiter Wellness Acquisition Corp (NASDAQ: JWAC), now known as CJET. Mr. John is the founder of Caro Partners, LLC, a financial consulting firm specializing in advising emerging growth companies, and has worked with hundreds of companies across dozens of countries. He is also currently the Chairman of the Board for Caring Brands, Inc., a consumer brand development company. Mr. John served on the board of directors of The Learning Center at the Els Center of Excellence, a school for children with autism in Jupiter, Florida, from 2015 through 2023.

**Blake R. Phillips, Chief Operating Officer** – Blake R. Phillips, age 39, combines over 17 years of experience in the recreational marine industry's senior management. Previously, he had been involved in three major companies in the boating industry, holding positions including senior sales executive and Chief Operating Officer. From 2013 through 2022, Mr. Phillips held leadership roles with White River Marine Group, the world's largest builder of fishing and recreational boats by volume, and MarineMax, the world's largest retailer of recreational boats and yachts. In October 2022, he joined Off The Hook YS Inc. as Chief Operating Officer to lead the Company's expansion of its consumer base, supplier network, stores, and operational systems. Mr. Phillips has recruited, built, and led teams of over 100, earned top sales accolades for brands such as Boston Whaler and Azimut Yachts, consulted on new vessel manufacturing, opened retail locations, and designed and managed major boat show displays.

**Chad Corbin, Chief Financial Officer** – Chad Corbin, age 47, combines over 22 years of experience in financial and operational senior management following a career that began at Ferguson Enterprises. Previously, he had been involved in multiple companies within the financial and manufacturing industries, holding positions including Chief Financial Officer, Controller, General Manager, and Operations Manager. From 2000 through 2008, Mr. Corbin was the Credit Manager and later the Operations Manager for Ferguson Enterprises' Jacksonville, FL branch. From 2008 to 2017, he served as Controller and subsequently as Chief Financial Officer and General Manager of Filmwerks International, a company specializing in event production and technical solutions. During his nine-year tenure, he was responsible for overseeing financial operations, maintaining the company's banking relationships, overseeing two large competitor acquisitions. Following Filmwerks, from 2017 to 2024, Mr. Corbin worked as a Financial/ Operational consultant for several small companies. Two of his larger contracts were with Audioengine and Manufacturing Methods. Audioengine, a leading innovator in high-end audio equipment, he managed accounting, fulfilment, production, and sales support functions. Manufacturing Methods, he served has their CFO, where he was responsible for financial and human resources decisions across three companies, maintaining compliance with GAAP standards. Mr. Corbin is also currently the Chief Financial Officer of the Company.

**Andrew Simmons, Executive Vice President** – Andrew Simmons, age 37, combines over 19 years of experience in senior sales and marketing leadership across the marine and automotive industries. Previously, he had been involved in multiple ventures within these sectors, holding positions including Founder, Partner, and President of Sales. Mr. Simmons was the Founder and Partner of American Yacht Group, one of the United States' largest new yacht dealerships, generating over $100 million in annual sales since its inception in 2019. His success at American Yacht Group contributed to over 50% growth in annual sales for HCB Yachts. Most recently, Mr. Simmons was promoted to President of Sales for HCB Yachts globally. Mr. Simmons has demonstrated a consistent ability to drive growth in competitive markets through innovative sales strategies and strong leadership. His experience in scaling businesses provides a valuable commercial perspective that supports the Company's expansion and revenue growth initiatives.

**Mike Kosloske, Independent Director** – Mike Kosloske, age 61, is a third-generation insurance industry professional with a long-standing track record in executive leadership and public company governance. He is the founder of Health Insurance Innovations, Inc. (HIIQ), a health insurance technology company that completed its initial public offering on Nasdaq in February 2013. Mr. Kosloske served as Chief Executive Officer of HIIQ, which was recognized as the #1 Growth Company on Nasdaq in 2016, 2017, and 2018. In 2013, he was a finalist for the Ernst & Young Entrepreneur of the Year award. HIIQ was acquired by Madison Dearborn Partners in 2019. Mr. Kosloske previously served on the Board of Directors for St. Joseph's Hospitals Foundation (2016 – 2025) and currently serves on the Board of Directors for Seminole Boosters (2019 – Present). He is also Managing Partner of Future Labs Capital, a firm focused on funding and consulting for MIT-affiliated companies in artificial intelligence, machine learning, and quantum computing (2024 – Present).

**Jim Segrave, Independent Director** – Jim Segrave, age 54, is the Founder, Chairman, and Chief Executive Officer of flyExclusive, one of North America's largest and most innovative private jet operators. Founded in 2015, flyExclusive operates a fleet of over 90 light, mid, and super-midsize jets, employs nearly 800 professionals, and generated estimated annual revenues exceeding $350 million in 2024. In December 2023, flyExclusive (NYSE: FLYX) completed its public listing on the New York Stock Exchange. Mr. Segrave previously founded Segrave Aviation, Inc., a successful aircraft charter company sold to Delta Air Lines in 2010, which became Delta Private Jets. He also founded LGM Ventures, LLC, which operates fixed-base operations (FBOs) at Eastern North Carolina airports, the largest daycare center in Kinston, and a restaurant and bar in Atlantic Beach. Mr. Segrave has been named to the North Carolina Power List of Most Influential Leaders for the past three years. In 2024, he received the Boy Scouts Distinguished Citizen Award and was awarded the Key to the City by the Mayor. He currently serves on the Board of Directors of Quality Equipment, which owns and operates 38 John Deere dealerships, and as Vice Chairman of the Board of Directors of L. Harvey & Son, one of North Carolina's oldest privately held businesses, founded in 1871. Mr. Segrave is also a member of the Board of Trustees at East Carolina University, the Embry-Riddle Aeronautical University Industrial Advisory Board, and the National Business Aviation Association (NBAA) Leadership Council.

**Mary Reynolds, Independent Director** – Mary Reynolds, age 41, has over 15 years of leadership experience in retail and commercial finance, with a focus on business development, process optimization, and strategic growth. Mrs. Reynolds currently serves as Digital Innovation Director at a Connecticut-based bank, where she leads cross-functional teams in delivering technology-driven financial solutions. Previously, Mrs. Reynolds led marine operations at a top-performing national bank, supporting over $500 million in loan originations in under two years while managing federal and state regulatory audits. From November 2024 to May 2025, she served as Vice President of Consumer Lending at The Washington Trust Company. From July 2020 to August 2023, Mrs. Reynolds served as Chief Operating Officer of LV/Bank of Clark and later as Senior Vice President, Head of Operations at LV/Axos Bank of LaVictoire Finance.

**George Jousma, Independent Director** – George Jousma, age 66, brings more than 45 years of executive experience representing the Italian yachting sector in the Americas. In 1994, Mr. Jousma became President of Allied Marine/Richard Bertram Yachts, where he expanded the business from a single yacht product line generating under $20 million in sales to a company of over 200 employees across nine locations, with revenues exceeding $200 million. During his 14-year tenure, Allied became one of the largest distributors of Azimut, Benetti, and Ferretti yachts in the Americas, ultimately leading to its acquisition by the Ferretti Group in 2008. That same year, Mr. Jousma founded Sanlorenzo of the Americas, serving as President and Chief Executive Officer for ten years and establishing Sanlorenzo as one of the leading motor yacht brands in the region. Mr. Jousma also served on the Board of Directors and as a two-term President of the International Yacht Brokers Association (IYBA), the largest professional association of its kind globally. He has been an active participant in the Marine Industries Association of South Florida (MIASF) and is a lifelong boater originally from the Midwestern United States.

**Robert Gonnelli, Independent Director** – Robert Gonnelli, age 70, is the Founder and Chief Executive Officer of Red Oak Holdings LLC since [ ], a real estate developer specializing in multifamily homes in the northeast. Red Oak Holdings' total current assets exceed 325 million. Prior to Red Oak Holdings, Mr. Gonnelli founded Goodyear Lubricants, a partnership with Goodyear Tire and Rubber Company. This partnership aimed to develop and market a high-end line of lubricants and antifreeze in the United States and Canada. Prior to that, Mr. Gonnelli founded BioValve Tecnologies Inc., a think tank in the medical device arena. He holds over 195 worldwide patents and has sold the company's key technologies to multiple international pharmaceutical companies for a total of 1.5 billion. Many of these products are currently marketed globally. Throughout his career, Mr. Gonnelli has successfully built and guided eleven companies from their early stages to liquidity, raising over 1.5 billion in capital. Mr. Gonnelli has a deep passion for boating and has overseen the construction of over 14 yachts for personal use. He has also traveled extensively on the waters, from Maine to the British Virgin Islands.

**Family Relationships**

There are no family relationships between or among any of the current directors, executive officers or persons nominated or charged to become directors or executive officers.

**Board Composition and Election of Directors**

Our Board has seven members. Our founder serves as our Chairman of the Board. Our Board has determined its leadership structure is appropriate and effective given our stage of development.

***Director Independence***

Under Rule 303A of the NYSE American Rules, a director will only qualify as an "independent director" if, our board of directors affirmatively determines that the person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered independent for purposes of Rule 303A of the NYSE Listed Company Manual, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee, accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries or otherwise be an affiliated person of the listed company or any of its subsidiaries.

Our board of directors has reviewed the composition of our board of directors and its committees and the independence of each director. Based upon information requested from and provided by each director concerning his background, employment and affiliations, including family relationships, our board of directors has determined that each Mike Kosloske, Mary Reynolds, Jim Segrave, and George Jousma, is an "independent director" as defined under Rule 303A of the NYSE Listed Company Manual. Our board of directors also determined that Jim Segrave and George Jousma will comprise our audit committee following this offering, Mike Kosloske, Mary Reynolds, and George Jousma will comprise our compensation committee following this offering, and Mike Kosloske, Mary Reynolds, and Jim Segrave will comprise our nominating and corporate governance committee following this offering, satisfy the independence standards for such committees established by the SEC and the NYSE Rules, as applicable. In making such determinations, our board of directors considered the relationships that each such non-employee director has with our company and all other facts and circumstances our board of directors deemed relevant in determining independence, including the beneficial ownership of our capital stock by each non-employee director.

**Board Leadership Structure**

Our board of directors has not adopted a formal policy regarding the separation of the offices of Chief Executive Officer and Chairman of the board of directors. Rather, the board of directors believes that different leadership structures may be appropriate for the Company at different times and under different circumstances, and it prefers flexibility in making this decision based on its evaluation of the relevant facts at any given time.

**Role of the Board in Risk Oversight**

We face a number of risks, including those described under the caption "Risk Factors" contained elsewhere in this prospectus. Our board of directors believes that risk management is an important part of establishing, updating and executing on our business strategy. Our board of directors has oversight responsibility relating to risks that could affect the corporate strategy, business objectives, compliance, operations, and the financial condition and performance of our company. Our board of directors focuses its oversight on the most significant risks facing us and, on our processes, to identify, prioritize, assess, manage and mitigate those risks. Our board of directors receives regular reports from members of our senior management on areas of material risk to us, including strategic, operational, financial, legal and regulatory risks. While our board of directors has an oversight role, management is principally tasked with direct responsibility for management and assessment of risks and the implementation of processes and controls to mitigate their effects on us.

**Board Committees**

Following this Offering, we will have the following board of directors' committees: an audit committee, a compensation committee, and a nominating and corporate governance committee. The anticipated composition and responsibilities of each committee are described below. Members will serve on these committees until their resignation or until otherwise determined by our board of directors. Upon our listing on NYSE American, each committee's charter will be available under the Corporate Governance section of our website at www.offthehookyachts.com*.* The reference to our website address does not constitute incorporation by reference of the information contained at or available through our website, and you should not consider it to be a part of this prospectus.

***Audit Committee.*** The audit committee's responsibilities will include:

● appointing, approving the compensation of, and assessing the independence of our registered public accounting firm;

● overseeing the work of our registered public accounting firm, including through the receipt and consideration of reports from such firm;

● reviewing and discussing with management and the registered public accounting firm our annual and quarterly financial statements and related disclosures;

● coordinating our board of directors' oversight of our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics;

● discussing our risk management policies;

● meeting independently with our internal auditing staff, if any, registered public accounting firm and management;

● reviewing and discussing with management our compliance with the FCPA;

● reviewing and approving or ratifying any related person transactions; and

● preparing the audit committee report required by the United States Securities and Exchange Commission ("SEC") rules.

After this Offering, we expect that the initial members of our audit committee will consist of Jim Segrave, George Jousma, and Mary Reynolds. Mary Reynolds will be the chairperson of our audit committee. All members of our audit committee meet the requirements for financial literacy under the applicable rules and regulations of the SEC and the NYSE American. Our board has determined that is an audit committee financial expert as defined under the applicable rules of the SEC and has the requisite financial sophistication as defined under the applicable rules and regulations of NYSE American. Under the SEC rules, members of the audit committee must also meet heightened independence standards. However, a minority of the members of the audit committee may be exempt from the heightened audit committee independence standards for one year from the date of effectiveness of the registration statement of which this prospectus forms a part. Our board of directors has determined that is independent under the heightened audit committee independence standards of the SEC and .

As allowed under the applicable rules and regulations of the SEC and NYSE American, we intend to phase in compliance with the audit committee composition requirements prior to the end of the one-year transition period. The audit committee operates under a written charter that satisfies the applicable standards of the SEC and NYSE American.

***Compensation Committee.*** The compensation committee's responsibilities include:

● reviewing and approving, or recommending for approval by the board of directors, the compensation of our Chief Executive Officer and our other executive officers;

● overseeing and administering our cash and equity incentive plans;

● reviewing and making recommendations to our board of directors with respect to director compensation;

● reviewing and discussing annually with management our "Compensation Discussion and Analysis," to the extent required; and

● preparing the annual compensation committee report required by SEC rules, to the extent required.

After this Offering, we expect the members of our compensation committee will consist of Mike Kosloske, Mary Reynolds, and George Jousma. Mike Kosloske will be the chairperson of our compensation committee. Each of the members of our compensation committee is independent under the applicable rules and regulations of NYSE American and is a "non-employee director" as defined in Rule 16b-3 promulgated under the Exchange Act. The compensation committee operates under a written charter that satisfies the applicable standards of the SEC and the .

***Nominating and Corporate Governance Committee.*** The nominating and corporate governance committee's responsibilities include:

● identifying individuals qualified to become board members;

● recommending to our board of directors the persons to be nominated for election as directors and to each board committee;

● developing and recommending to our board of directors' corporate governance guidelines, and reviewing and recommending to our board of directors proposed changes to our corporate governance guidelines from time to time;

● overseeing a periodic evaluation of our board of directors; and

● developing effective Environmental, Social and Governance (ESG) policies within the corporate governance guidelines to address social responsibility aimed at providing appropriate support to local communities within areas subject to hydrocarbon exploration operations, and environmental goals aimed at limiting the environmental footprint of operations, ameliorating any changes to the environment and targeting mechanisms to reduce or offset the carbon footprint of operations.

*<u>**Table of Contents**</u>*

After this Offering, we expect that the members of our nominating and corporate governance committee will consist of Mike Kosloske, Mary Reynolds, and Jim Segrave. Jim Segrave will be the chairperson of our nominating and corporate governance committee. Each of the members of our nominating and corporate governance committee is an independent director under the applicable rules and regulations of NYSE American relating to nominating and corporate governance committee independence. The nominating and corporate governance committee operates under a written charter that satisfies the applicable standards of the SEC and NYSE American.

**Compensation Committee Interlocks and Insider Participation**

No member of our compensation committee will have been a current or former officer or employee. None of our executive officers served as a director or a member of a compensation committee (or other committee serving an equivalent function) of any other entity, one of whose executive officers served as a director or member of our compensation committee during the last completed fiscal year.

**Code of Ethics and Code of Conduct**

We have adopted a written code of business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. Upon our listing on NYSE American, our code of business conduct and ethics will be available under the Corporate Governance section of our website at *www.offthehookyachts.com*. In addition, we intend to post on our website all disclosures that are required by law or NYSE American rules concerning any amendments to, or waivers from, any provision of the code. The reference to our website address does not constitute incorporation by reference of the information contained at or available through our website, and you should not consider it to be a part of this prospectus.

**EXECUTIVE AND DIRECTOR COMPENSATION**

**Summary Compensation**

The following sets forth the compensation paid by us to our named executive officers during the fiscal years ended 2024 and 2023.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Name and Principal**<br> **Position** | <br>**Year** |<br>**Salary**<br>**($)** |<br>**Bonus**<br>**($)** | **Stock**<br>**Awards**<br>**($)** | **Option**<br>**Awards**<br>**($)** | **All Other**<br>**Compensation**<br>**($)** |<br>**Total**<br>**($)** |
| Brian S. John | 2024 |  |  |  |  |  |  |
| Chief Executive Officer | 2023 |  |  |  |  |  |  |
| Jason Ruegg | 2024 | 300000 |  |  |  |  | 300000 |
| Founder, President and Chairman of the Board | 2023 | 300000 |  |  |  |  | 300000 |
| Chad Corbin | 2024 | 175000 |  |  |  |  | 175000 |
| Chief Financial Officer | 2023 |  |  |  |  |  |  |
| Blake Phillips | 2024 | 300000 |  |  |  |  | 300000 |
| Chief Operating Officer | 2023 | 250000 |  |  |  |  | 250000 |

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**Narrative Disclosure to Summary Compensation Table**

**Stock Option Grants**

We have not granted any stock options to our executive officers since our incorporation.

**Employment Agreements**

*Jason Ruegg Employment Agreement*

We have entered into a three-year employment agreement with Jason Ruegg (the "Mr. Ruegg Employment Agreement") effective upon our initial public offering which shall automatically renew for one successive year periods unless terminated in accordance with the Mr. Ruegg Employment Agreement. Mr. Ruegg serves as our President and the Chairman of the Board.

Mr. Ruegg will receive an annual base salary of $500,000 and is and is eligible to receive performance bonuses to be determined by the Compensation Committee annually. The base salary may be increased at any time, at the Company's sole discretion, based on the employee's performance. Compensation may include stock options or restricted stock to be issued in accordance with the Company's 2025 Equity Incentive Plan. The Mr. Ruegg Employment Agreement provides that Mr. Ruegg will be eligible to participate in all benefit and fringe benefit plans generally made available to our other executive officers.

The Mr. Ruegg Employment Agreement provides that it shall continue until terminated (i) by mutual agreement; (ii) due to death or disability of Mr. Ruegg; (iii) by Mr. Ruegg without good reason upon 90 days written notice to us; (iv) by us for cause (as defined in the Mr. Ruegg Employment Agreement); (v) by us without cause; or (vi) by Mr. Ruegg for good reason (as defined in the Mr. Ruegg Employment Agreement).

The Mr. Ruegg Employment Agreement includes standard restrictive covenants in favor of our company, including, non-compete, confidentiality, and two-year post-termination customer and employee non solicitation.

*Brian John Employment Agreement*

We have entered into a three-year employment agreement with Brian John (the "Mr. John Employment Agreement") effective upon our initial public offering which shall automatically renew for one successive year periods unless terminated in accordance with the Mr. John Employment Agreement. Mr. John serves as our Chief Executive Officer.

Mr. John will receive an annual base salary of $300,000 and is and is eligible to receive performance bonuses to be determined by the Compensation Committee annually. The base salary may be increased at any time, at the Company's sole discretion, based on the employee's performance. Compensation may include stock options or restricted stock to be issued in accordance with the Company's 2025 Equity Incentive Plan. The Mr. John Employment Agreement provides that Mr. John will be eligible to participate in all benefit and fringe benefit plans generally made available to our other executive officers.

The Mr. John Employment Agreement provides that it shall continue until terminated (i) by mutual agreement; (ii) due to death or disability of Mr. John; (iii) by Mr. John without good reason upon 90 days written notice to us; (iv) by us for cause (as defined in the Mr. John Employment Agreement); (v) by us without cause; or (vi) by Mr. John for good reason (as defined in the Mr. John Employment Agreement).

The Mr. John Employment Agreement includes standard restrictive covenants in favor of our company, including, non-compete, confidentiality, and two-year post-termination customer and employee non solicitation.

*Chad Corbin Employment Agreement*

We have entered into a three-year employment agreement with Chad Corbin (the "Mr. Corbin Employment Agreement") effective upon our initial public offering which shall automatically renew for one successive year periods unless terminated in accordance with the Mr. Corbin Employment Agreement. Mr. Corbin serves as our Chief Financial Officer. Mr. Corbin will receive an annual base salary of $200,000. The base salary may be increased at any time, at the Company's sole discretion, based on the employee's performance. Compensation may include stock options or restricted stock to be issued in accordance with the Company's 2025 Equity Incentive Plan. The Mr. Corbin Employment Agreement provides that Mr. Corbin will be eligible to participate in all benefit and fringe benefit plans generally made available to our other executive officers.

The Mr. Corbin Employment Agreement provides that it shall continue until terminated (i) by mutual agreement; (ii) due to death or disability of Mr. Corbin; (iii) by Mr. Corbin without good reason upon 90 days written notice to us; (iv) by us for cause (as defined in the Mr. Corbin Employment Agreement); (v) by us without cause; or (vi) by Mr. Corbin for good reason (as defined in the Mr. Corbin Employment Agreement).

The Mr. Corbin Employment Agreement includes standard restrictive covenants in favor of our company, including, non-compete, confidentiality, and two-year post-termination customer and employee non solicitation.

*Blake Phillips Employment Agreement*

We have entered into a three-year employment agreement with Blake Phillips (the "Mr. Phillips Employment Agreement") effective upon our initial public offering which shall automatically renew for one successive year periods unless terminated in accordance with the Mr. Phillips Employment Agreement. Mr. Phillips serves as our Chief Operating Officer.

Mr. Phillips will receive an annual base salary of $500,000 and is and is eligible to receive performance bonuses to be determined by the Compensation Committee annually. The base salary may be increased at any time, at the Company's sole discretion, based on the employee's performance. Compensation may include stock options or restricted stock to be issued in accordance with the Company's 2025 Equity Incentive Plan. The Mr. Phlilips Employment Agreement provides that Mr. Phillips will be eligible to participate in all benefit and fringe benefit plans generally made available to our other executive officers.

The Mr. Phillips Employment Agreement provides that it shall continue until terminated (i) by mutual agreement; (ii) due to death or disability of Mr. Phillips; (iii) by Mr. Phillips without good reason upon 90 days written notice to us; (iv) by us for cause (as defined in the Mr. Phillips Employment Agreement); (v) by us without cause; or (vi) by Mr. Phillips for good reason (as defined in the Mr. Phillips Employment Agreement).

The Phillips Employment Agreement includes standard restrictive covenants in favor of our company, including, non-compete, confidentiality, and two-year post-termination customer and employee non solicitation.

**Employee Benefit and Stock Plans**

***2025 Stock Incentive Plan***

On April 29, 2025, our board of directors and our stockholders approved the Off The Hook YS Inc. 2025 Stock Incentive Plan, or the 2025 Plan. The 2025 Plan will become effective immediately prior to the closing of the Company's initial public offering described herein. The principal provisions of the 2025 Plan are summarized below.

**Administration**

The 2025 Plan vests broad powers in a committee to administer and interpret the 2025 Plan. Our board of directors has initially designated the compensation committee to administer the 2025 Plan. Except when limited by the terms of the 2025 Plan, the compensation committee has the authority to, among other things: select the persons to be granted awards; determine the type, size and term of awards; establish performance objectives and conditions for earning awards; determine whether such performance objectives and conditions have been met; and accelerate the vesting or exercisability of an award. In its discretion, the compensation committee may delegate all or part of its authority and duties with respect to granting awards to one or more of our officers, subject to certain limitations and provided applicable law so permits.

Our board of directors may amend, alter, or discontinue the 2025 Plan and the compensation committee may amend any outstanding award at any time; provided, however, that no such amendment or termination may adversely affect awards then outstanding without the holder's permission. In addition, any amendments seeking to increase the total number of shares reserved for issuance under the 2025 Plan or modifying the classes of participants eligible to receive awards under the 2025 Plan will require ratification by our stockholders in accordance with applicable law. Additionally, as described more fully below, neither the compensation committee nor the board of directors is permitted to reprice outstanding options or stock appreciation rights without shareholder consent.

**Eligibility**

Any of our employees, directors, consultants, and other service providers, or those of our affiliates, are eligible to participate in the 2025 Plan and may be selected by the compensation committee to receive an award.

**Vesting**

The compensation committee determines the vesting conditions for awards. These conditions may include the continued employment or service of the participant, the attainment of specific individual or corporate performance goals, or other factors as determined in the compensation committee's discretion (collectively, "Vesting Conditions").

**Shares of Stock Available for Issuance**

Subject to certain adjustments, the maximum number of shares of Common Stock that may be issued under the 2025 Plan in connection with awards is 4,000,000 shares. In addition, the maximum number of shares of Common Stock that may be issued under the 2025 Plan will automatically increase on January 1 of each calendar year for a period of ten years commencing on January 1, 2026 and ending on (and including) January 1, 2035, in a number of shares of Common Stock equal to 4.5% of the total number of shares of Common Stock outstanding on December 31 of the preceding calendar year; provided, however that the board of directors may act prior to January 1 of a given calendar year to provide that the increase for such year will be a lesser number of shares of Common Stock. All available shares may be utilized toward the grant of any type of award under the 2025 Plan.

In the event of any merger, consolidation, reorganization, recapitalization, stock split, reverse stock split, split up, spin-off, combination of shares, exchange of shares, stock dividend, dividend in kind, or other like change in capital structure (other than ordinary cash dividends), or other similar corporate event or transaction that affects our Common Stock, the compensation committee shall make adjustments to the number and kind of shares authorized by the 2025 Plan and covered under outstanding 2025 Plan awards as it determines appropriate and equitable.

Shares subject to 2025 Plan awards that expire without being fully exercised or that are otherwise forfeited, cancelled or terminated may again be made available for issuance under the 2025 Plan. However, shares withheld in settlement of a tax withholding obligation, or in satisfaction of the exercise price payable upon exercise of an option, will not again become available for issuance under the 2025 Plan.

**Types of Awards**

The following types of awards may be granted to participants under the 2025 Plan: (i) incentive stock options, or ISOs; (ii) nonqualified stock options, or NQOs and together with ISOs, options, (iii) stock appreciation rights, (iv) restricted stock, or (v) restricted stock units.

*Stock Options*. An option entitles the holder to purchase from us a stated number of shares of Common Stock. An ISO may only be granted to an employee of ours or our eligible affiliates. The compensation committee will specify the number of shares of Common Stock subject to each option and the exercise price for such option, provided that the exercise price may not be less than the fair market value of a share of Common Stock on the date the option is granted. Notwithstanding the foregoing, if ISOs are granted to any 10% stockholder, the exercise price shall not be less than 110% of the fair market value of Common Stock on the date the option is granted.

Generally, options may be exercised in whole or in part through a cash payment. The compensation committee may, in its sole discretion, permit payment of the exercise price of an option in the form of previously acquired shares based on the fair market value of the shares on the date the option is exercised, through means of "net settlement," which involves the cancellation of a portion of the option to cover the cost of exercising the balance of the option or by such other means as it deems acceptable.

All options shall be or become exercisable in accordance with the terms of the applicable award agreement. The maximum term of an option shall be determined by the compensation committee on the date of grant but shall not exceed 10 years (5 years in the case of ISOs granted to any 10% stockholder). In the case of ISOs, the aggregate fair market value (determined as of the date of grant) of Common Stock with respect to which such ISOs become exercisable for the first time during any calendar year cannot exceed $100,000. ISOs granted in excess of this limitation will be treated as non-qualified stock options.

*Stock Appreciation Rights*. A stock appreciation right represents the right to receive, upon exercise, any appreciation in a share of Common Stock over a particular time period. The base price of a stock appreciation right shall not be less than the fair market value of a share of Common Stock on the date the stock appreciation right is granted. This award is intended to mirror the benefit the participant would have received if the compensation committee had granted the participant an option. The maximum term of a stock appreciation right shall be determined by the compensation committee on the date of grant but shall not exceed 10 years. Distributions with respect to stock appreciation rights may be made in cash, shares of Common Stock, or a combination of both, at the compensation committee's discretion.

Unless otherwise provided in an award agreement or determined by the compensation committee, if a participant terminates employment with us (or our affiliates) due to death or disability, the participant's unexercised options and stock appreciation rights may be exercised, to the extent they were exercisable on the termination date, for a period of twelve months from the termination date or until the expiration of the original award term, whichever period is shorter. If the participant terminates employment with us (or our affiliates) for cause, (i) all unexercised options and stock appreciation rights (whether vested or unvested) shall terminate and be forfeited on the termination date, and (ii) any shares in respect of exercised options or stock appreciation rights for which we have not yet delivered share certificates will be forfeited and we will refund to the participant the option exercise price paid for those shares, if any. If the participant's employment terminates for any other reason, any vested but unexercised options and stock appreciation rights may be exercised by the participant, to the extent exercisable at the time of termination, for a period of ninety days from the termination date (or such time as specified by the compensation committee at or after grant) or until the expiration of the original option or stock appreciation right term, whichever period is shorter. Unless otherwise provided by the compensation committee, any options and stock appreciation rights that are not exercisable at the time of termination of employment shall terminate and be forfeited on the termination date.

*Restricted Stock*. A restricted stock award is a grant of shares of Common Stock, which are subject to forfeiture restrictions during a restriction period. The compensation committee will determine the price, if any, to be paid by the participant for each share of Common Stock subject to a restricted stock award. The restricted stock may be subject to Vesting Conditions. If the specified Vesting Conditions are not attained, the participant will forfeit the portion of the restricted stock award with respect to which those conditions are not attained, and the underlying Common Stock will be forfeited to us. At the end of the restriction period, if the Vesting Conditions have been satisfied, the restrictions imposed will lapse with respect to the applicable number of shares. Unless otherwise provided in an award agreement or determined by the compensation committee, upon termination a participant will forfeit all restricted stock that then remains subject to forfeiture restrictions.

*Restricted Stock Units*. Restricted stock units are granted in reference to a specified number of shares of Common Stock and entitle the holder to receive, on the achievement of applicable Vesting Conditions, shares of Common Stock. Unless otherwise provided in an award agreement or determined by the Compensation committee, upon termination a participant will forfeit all restricted stock units that then remain subject to forfeiture.

**Change in Control**

In the event of a change in control, the compensation committee may, on a participant-by-participant basis: (i) cause any or all outstanding awards to become vested and immediately exercisable (as applicable), in whole or in part; (ii) cause any outstanding option or stock appreciation right to become fully vested and immediately exercisable for a reasonable period in advance of the change in control and, to the extent not exercised prior to that change in control, cancel that option or stock appreciation right upon closing of the change in control; (iii) cancel any unvested award or unvested portion thereof, with or without consideration; (iv) cancel any award in exchange for a substitute award; (v) redeem any restricted stock or restricted stock unit for cash and/or other substitute consideration with value equal to the fair market value of an unrestricted share on the date of the change in control; (vi) cancel any outstanding option or stock appreciation right with respect to all Common Stock for which the award remains unexercised in exchange for a cash payment equal to the excess (if any) of the fair market value of the Common Stock subject to the option or stock appreciation right over the exercise price of the option or stock appreciation right; (vii) impose vesting terms on cash or substitute consideration payable upon cancellation of an award that are substantially similar to those that applied to the cancelled award immediately prior to the change in control, and/or earn-out, escrow, holdback or similar arrangements, to the extent such arrangements are applicable to any consideration paid to stockholders in connection with the change in control; (viii) take such other action as the compensation committee shall determine to be reasonable under the circumstances; and/or (ix) in the case of any award subject to Section 409A of the Code, the compensation committee shall only be permitted to use discretion to alter the settlement timing of the award to the extent that such discretion would be permitted under Section 409A of the Code.

**Repricing**

Neither our board of directors nor the compensation committee may, without obtaining prior approval of our stockholders: (i) implement any cancellation/re-grant program pursuant to which outstanding options or stock appreciation rights under the 2025 Plan are cancelled and new options or stock appreciation rights are granted in replacement with a lower exercise per share; (ii) cancel outstanding options or stock appreciation rights under the 2025 Plan with an exercise price per share in excess of the then current fair market value per share for consideration payable in our equity securities; or (iii) otherwise directly reduce the exercise price in effect for outstanding options or stock appreciation rights under the 2025 Plan.

**Miscellaneous**

Generally, awards granted under the 2025 Plan shall be nontransferable except by will or by the laws of descent and distribution. No participant shall have any rights as a stockholder with respect to shares covered by options or restricted stock units, unless and until such awards are settled in shares of Common Stock. The Company's obligation to issue shares or to otherwise make payments in respect of 2025 Plan awards will be conditioned on the Company's ability to do so in compliance with all applicable laws and exchange listing requirements. The awards will be subject to our recoupment and stock ownership policies, as may be in effect from time to time. The 2025 Plan will expire 10 years after it becomes effective.

As of the date of this prospectus, we have not granted, and do not currently plan to grant, any awards under the 2025 Plan.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

Each of the related party transactions described below was negotiated on an arm's length basis. We believe that the terms of such agreements are as favorable as those we could have obtained from parties not related to us. The following are summaries of certain provisions of our related party agreements and are qualified in their entirety by reference to all of the provisions of such agreements. Because these descriptions are only summaries of the applicable agreements, they do not necessarily contain all of the information that you may find useful. We therefore urge you to review the agreements in their entirety. Copies of the forms of the agreements have been filed as exhibits to the registration statement of which this prospectus is a part, and are available electronically on the website of the SEC at <u>www.sec.gov</u>.

On July 22, 2019, the Off the Hook Yacht Sales NC, LLC (the "OTHYS") entered into a loan agreement with Dan and Diane Ruegg, the parents of Jason Ruegg, the Company's President. Pursuant to the agreement, Dan and Diane Ruegg agreed to loan up to $1 million in OTHYS. The loan is unsecured, bears interest at an annual rate of 7%, and has no maturity date. As of December 31, 2024, the outstanding balance was $1,054,179. As of March 31, 2025, the outstanding balance was $1,051,399.

On February 23, 2023, OTHYS entered into a loan agreement with Tom Ruegg, the uncle of Jason Ruegg, the Company's President. Pursuant to the agreement, Tom Ruegg agreed to loan up to $500,000 in OTHYS. The loan is unsecured, bears interest at an annual rate of 7%, and it matures on July 1, 2027. As of March 31, 2025 and December 31, 2024, the outstanding principal balance was $321,426 and $358,992, respectively.

During 2023, OTHYS obtained a $45,691 working capital loan from OTH Realty II, LLC. As of December 31, 2023, the outstanding balance was $14,096. The loan was fully repaid during 2024, and as the amount was immaterial, no interest expense was incurred in connection with this loan.

On November 1, 2022, OTH Simon Marine YF, LLC (the "Boat Centre") obtained a $570,000 working capital loan from Ruegg Capital Group. While the loan carries a 0% stated interest rate, Boat Centre has imputed interest at 7.5%. The outstanding balance decreased from $261,375 as of December 31, 2023 to $9,369 by December 31, 2024. As of March 31, 2025, the outstanding balance had been settled in full. For the years ended December 31, 2024 and 2023, Boat Centre recognized imputed interest expense of $33,725 and $42,750 respectively, which was recorded as both interest expense and an increase to additional paid-in capital. During the three months ended March 31, 2025 and 2024, Boat Centre recognized imputed interest of nil and $10,688, respectively, and recorded interest expense and an increase in additional paid-in capital.

On December 8, 2023, Azure Funding, LLC ("Azure") secured a $100,000 working capital advance from Jason Ruegg. While the arrangement carried a 0% stated interest rate, Azure applied a 7.5% imputed interest. Azure fully repaid this advance by December 31, 2024. For the years ended December 31, 2024 and 2023, the Company recognized imputed interest expense of $7,021 and $479, respectively, which was recorded through both interest expense and an increase to additional paid-in capital. This working capital facility was structured as payable on demand.

In 2024, OTHYS paid the service expense on behalf of OTH Service NC, LLC. As of December 31, 2024, the balance amounted to $11,313. As of March 31, 2025, the outstanding balance was fully settled.

***Member Contribution***

During the year ended December 31, 2023, the Company recorded member capital contributions totaling $1,770,000, primarily related to related party loans forgiveness. In 2024, the Company received additional member contributions totaling $920,969 for related party loan forgiveness, which were recorded in additional paid-in capital. No equity securities were issued in connection with these capital contributions. No member contribution was recorded during the three months ended March 31, 2025.

***Member Distribution***

The Company's member distributions to date were made based on member approvals and were not contractual obligations. These distributions represented profit distributions or were made to assist members with estimated tax liabilities arising from the Company's pass-through tax status. The Company will not make any additional distributions after the initial public offering.

The Company's member distribution for the years ending December 31, 2024 and 2023, was $736,289 and $286,057, respectively. The Company's member distribution for the three months ended March 31, 2025 and 2024 was $591,906 and $559,834, respectively.

**Year Ended December 31, 2024**

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| | | | |
|:---|:---|:---|:---|
| **Entity** | **Amount** | **Recipient(s)** | **Purpose** |
| Azure | $100000 | Jason Ruegg, Glenn Overton, Katie Ruegg | General distribution |
| Boat Centre | $427850 | Jason Ruegg, Corey Simon | General distribution |
| OTHYS/Boat Centre/ Azure | $208439 | Jason Ruegg, Katie Ruegg, Glenn Overton, Corey Simon | Estimated income tax liabilities |
|  | $**736289** |  |  |

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**Year Ended December 31, 2023**

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| | | | |
|:---|:---|:---|:---|
| **Entity** | **Amount** | **Recipient(s)** | **Purpose** |
| Boat Centre | $74210 | Corey Simon | General distribution |
| OTHYS/Boat Centre/ Azure | $211847 | Jason Ruegg, Katie Ruegg, Glenn Overton, Corey Simon | Estimated income tax liabilities |
|  | $**286057** |  |  |

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**For Three Months Ended March 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| **Entity** | **Amount** | **Recipient(s)** | **Purpose** |
| OTHYS | $489684 | Jason Ruegg | General distribution |
| Boat Centre | $89000 | Jason Ruegg, Corey Simon | General distribution |
| OTHYS/Boat Centre/ Azure | $13222 | Jason Ruegg, Katie Ruegg, Glenn Overton, Corey Simon  | Estimated income tax liabilities |
|  | $**591906** |  |  |

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**For Three Months Ended March 31, 2024**

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| | | | |
|:---|:---|:---|:---|
| **Entity** | **Amount** | **Recipient(s)** | **Purpose** |
| OTHYS | $558396 | Jason Ruegg | General distribution |
| OTHYS/Boat Centre/ Azure | $1438 | Jason Ruegg, Katie Ruegg, Glenn Overton, Corey Simon | Estimated income tax liabilities |
|  | $**559834** |  |  |

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**Our Policy Regarding Related Party Transactions**

Our board of directors recognizes the fact that transactions with related persons present a heightened risk of conflicts of interest and/or improper valuation (or the perception thereof). Prior to the closing of this offering, our board of directors will adopt a written policy on transactions with related persons that is in conformity with the requirements for issuers having publicly-held Common Stock that is listed on NYSE American. Under the new policy:

&nbsp;&nbsp;&nbsp;&nbsp;● any related person transaction, and any material amendment or modification to a related person transaction, must be reviewed and approved or ratified by the Audit Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;● any employment relationship or transaction involving an executive officer and any related compensation must be approved by the compensation committee of the board of directors or recommended by the compensation committee to the board of directors for its approval.

In connection with the review and approval or ratification of a related person transaction:

&nbsp;&nbsp;&nbsp;&nbsp;● management must disclose to the committee or disinterested directors, as applicable, the name of the related person and the basis on which the person is a related person, the material terms of the related person transaction, including the approximate dollar value of the amount involved in the transaction, and all the material facts as to the related person's direct or indirect interest in, or relationship to, the related person transaction;

&nbsp;&nbsp;&nbsp;&nbsp;● management must advise the committee or disinterested directors, as applicable, as to whether the related person transaction complies with the terms of our agreements governing our material outstanding indebtedness that limit or restrict our ability to enter into a related person transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● management must advise the committee or disinterested directors, as applicable, as to whether the related person transaction will be required to be disclosed in our applicable filings under the Securities Act or the Exchange Act, and related rules, and, to the extent required to be disclosed, management must ensure that the related person transaction is disclosed in accordance with the Securities Act and the Exchange Act and related rules; and

&nbsp;&nbsp;&nbsp;&nbsp;● management must advise the committee or disinterested directors, as applicable, as to whether the related person transaction constitutes a "personal loan" for purposes of Section 402 of the Sarbanes-Oxley Act.

In addition, the related person transaction policy provides that the committee or disinterested directors, as applicable, in connection with any approval or ratification of a related person transaction involving a non-employee director, should consider whether such transaction would compromise the director's status as an "independent," "outside," or "non-employee" director, as applicable, under the rules and regulations of the SEC, the , and the Code.

**PRINCIPAL STOCKHOLDERS**

The following table sets forth information with respect to the beneficial ownership of our Common Stock as of the date of this prospectus by:

● each person, or group of affiliated persons, known by us to beneficially own more than 5% of our outstanding shares of Common Stock (other than named executive officers and directors);

● each of our named executive officers;

● each of our directors; and

● all of our executive officers and directors as a group.

The number of shares of Common Stock beneficially owned by each stockholder is determined in accordance with the rules issued by the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under these rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power or investment power, which includes the power to dispose of or to direct the disposition of such security. Except as indicated in the footnotes below, we believe, based on the information furnished to us, that the individuals and entities named in the table below have sole voting and investment power with respect to all shares of Common Stock beneficially owned by them, subject to any community property laws.

Percentage ownership of our Common Stock before this Offering is based on 20,000,000 shares of Common Stock outstanding as of the date of this prospectus. Percentage ownership of our Common Stock after the Offering is based on 25,000,000 shares of Common Stock outstanding after the Offering. In computing the number of shares beneficially owned by an individual or entity and the percentage ownership of that person, shares of Common Stock subject to options, restricted units, warrants, or other rights held by such person that are currently exercisable or will become exercisable within 60 days of the date of this prospectus are considered outstanding, although these shares are not considered outstanding for purposes of computing the percentage ownership of any other person.

To calculate a stockholder's percentage of beneficial ownership of Common Stock, we must include in the numerator and denominator those shares of Common Stock, as well as those shares of Common Stock underlying options, warrants and convertible securities, that such stockholder is considered to beneficially own. Shares of Common Stock, and Common Stock underlying options, warrants and convertible securities, held by other stockholders, however, are disregarded in this calculation. Therefore, the denominator used in calculating the beneficial ownership of each of the stockholders may be different.

Unless otherwise indicated, the address of each beneficial owner listed below is c/o Off the Hook YS Inc., 1701 Jel Wade Dr, Wilmington, NC 28401. To our knowledge, there is no arrangement, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the Company.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Beneficial Ownership Before the Offering Common Stock (1)** | **Beneficial Ownership Before the Offering Common Stock (1)** | **Beneficial Ownership After the Offering Common Stock** | **Beneficial Ownership After the Offering Common Stock** |
| <br>**Name of Beneficial Owner** | **Shares** | **%** | **Shares** | **%** |
| **5% Stockholders:** |  |  |  |  |
| Ruegg Capital Group Inc (2) | 10614000 | 53.1% | 10614000 | 42.5% |
| **Executive Officers and Directors:** |  |  |  |  |
| Jason Ruegg (3) | 13687050 | 68.4% | 13687050 | 54.7% |
| Brian John | 5000000 | 25.0% | 5000000 | 20.0% |
| Chad Corbin |  |  |  |  |
| Blake Phillips |  |  |  |  |
| Andrew Simmons |  |  |  |  |
| Mike Kosloske |  |  |  |  |
| Mary Reynolds |  |  |  |  |
| Jim Segrave |  |  |  |  |
| George Jousma |  |  |  |  |
| Robert Gonnelli |  |  |  |  |
| **All directors and executive officers as a group** |  | 93.4% |  | 74.7% |

---

(1) Assuming the completion of the Reorganization.

(2) Jason Ruegg is 100% owner of Ruegg Capital Group Inc.

(3) 13,687,050 shares of Common Stock beneficially owned by Jason
 Ruegg include (i) 3,073,050 shares of Common Stock held by Mr. Ruegg directly, and (ii) 10,614,000
 shares of Common Stock Mr. Ruegg held through Ruegg Capital Group Inc.

**DESCRIPTION OF CAPITAL STOCK**

The following description summarizes important terms of our capital stock and certain provisions of our articles of incorporation and bylaws. Copies of these documents will be filed with the SEC as exhibits to our registration statement, of which this prospectus forms a part.

**General**

Our articles of incorporation authorizes capital stock consisting of:

● 100,000,000 shares of Common Stock, par value $0.001 per share; and

● 100,000 shares of blank check preferred stock, par value $0.001 per share.

We are selling 5,000,000 shares of Common Stock in this offering based on an assumed initial public offering price of $5.00 per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus. All of our Common Stock outstanding upon consummation of this offering will be fully paid and non-assessable.

The following description of our capital stock and provisions of our articles of incorporation and by-laws are summaries and are qualified by reference to the articles of incorporation and by-laws. We urge you to read our articles of incorporation and our by-laws, which are included as exhibits to the registration statement of which this prospectus forms a part.

Certain provisions of our articles of incorporation and our by-laws summarized below may be deemed to have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares of Common Stock.

**Common Stock**

Holders of shares of our Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Except as otherwise provided in our amended and restated certificate of incorporation or as required by law, all matters to be voted on by our stockholders other than matters relating to the election and removal of directors must be approved by a majority of the shares present in person or by proxy at the meeting and entitled to vote on the subject matter or by a written resolution of the stockholders representing the number of affirmative votes required for such matter at a meeting. The holders of our Common Stock do not have cumulative voting rights in the election of directors.

Holders of shares of our Common Stock are entitled to receive dividends when and if declared by our board of directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock.

Upon our dissolution or liquidation or the sale of all or substantially all of our assets, after payment in full of all amounts required to be paid to creditors and subject to any rights of preferred stockholders, the holders of shares of our Common Stock will be entitled to receive pro rata our remaining assets available for distribution.

Holders of shares of our Common Stock do not have preemptive, subscription, redemption, or conversion rights. There will be no redemption or sinking fund provisions applicable to the Common Stock.

**Preferred Stock**

Our board of directors has the authority, without action by our stockholders, to designate and issue up to 100,000 shares of blank check preferred stock in one or more series or classes and to designate the rights, preferences and privileges of each series or class, which may be greater than the rights of our Common Stock. There are no shares of preferred stock designated or outstanding. It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of our Common Stock until our board of directors determines the specific rights of the holders of the preferred stock. However, the effects might include:

● restricting dividends on our Common Stock;

● diluting the voting power of our Common Stock;

● impairing liquidation rights of our Common Stock; or

● delaying or preventing a change in control of us without further action by our stockholders.

The board of directors' authority to issue preferred stock without stockholder approval could make it more difficult for a third-party to acquire control of our company and could discourage such attempt. We have no present plans to issue any shares of preferred stock.

**Acquisition of Controlling Interests**

Nevada law also protects the corporation and its stockholders from persons acquiring a "controlling interest" in a corporation. The provisions can be found in Nevada Revised Statutes (the "NRS") 78.378 to 78.3793, inclusive. Delaware law does not have similar provisions.

The restriction on acquisition of a controlling interest applies to corporations which have 200 or more stockholders of record (at least 100 of whom have had addresses in Nevada at all times during the 90 days immediately preceding the date of the acquisition) and conducts business in Nevada, unless the Articles of Incorporation or bylaws of the corporation in effect on the tenth day after the acquisition of a controlling interest provide otherwise. NRS 78.3785 provides that a "controlling interest" means the ownership of outstanding voting shares of an issuing corporation sufficient to enable the acquiring person, individually or in association with others, directly or indirectly, to exercise (i) one fifth or more but less than one third, (ii) one third or more but less than a majority, or (iii) a majority or more of the voting power of the issuing corporation in the election of directors. Once an acquirer crosses one of these thresholds by acquiring a controlling interest in the corporation, the shares which the acquirer acquired in the transaction taking it over the threshold and within the 90 days immediately preceding the date when the acquiring person acquired or offered to acquire a controlling interest in the corporation become "control shares." Pursuant to NRS 78.379, any person who acquires a controlling interest in a corporation may not exercise voting rights on any control shares unless such voting rights are conferred by a majority vote of the disinterested stockholders of the issuing corporation at an annual meeting or a special meeting of such stockholders held upon the request and at the expense of the acquiring person, or, if the acquisition would adversely alter or change any preference or any relative or other right given to any other class or series of outstanding shares, the holders of a majority of each class or series affected. In the event that the control shares are accorded full voting rights and the acquiring person acquires control shares with a majority or more of all the voting power, any stockholder, other than the acquiring person, who does not vote in favor of authorizing voting rights for the control shares is entitled to demand payment for the fair value of such person's shares, and, provided that the proper procedure is adhered to, the corporation must comply with the demand.

NRS 78.378(1) provides that the control share statutes of the NRS do not apply to any acquisition of a controlling interest in an issuing corporation if the Articles of Incorporation or bylaws of the corporation in effect on the 10th day following the acquisition of a controlling interest by the acquiring person provide that the provisions of those sections do not apply to the corporation or to an acquisition of a controlling interest specifically by types of existing or future stockholders, whether or not identified. NRS 78.378(2) provides that the corporation may impose stricter requirements if it so desires. We have not opted out of the control share statutes, and will be subject to these statutes if we are an "issuing corporation" as defined in such statutes.

The effect of the Nevada control share statutes is that the acquiring person, and those acting in association with the acquiring person, will obtain only such voting rights in the control shares as are conferred by a resolution of the stockholders at an annual or special meeting. The Nevada control share law, if applicable, could have the effect of discouraging takeovers of our Company.

**Limitations of Director Liability and Indemnification of Directors, Officers and Employees**

NRS 78.138 provides that directors of a corporation is not individually liable to the corporation or its stockholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a director or officer unless: (a) the presumption that directors and officers acted in good faith on an informed basis with a view toward the best interest of the corporation has been rebutted and (b) it is proven that:

● The director's or officer's act or failure to act constituted a breach of his or her fiduciary duties as a director or officer; and

● such breach involved intentional misconduct, fraud or a knowing violation of law.

Our bylaws provide that we will indemnify our directors and officers to the fullest extent permitted by law and may indemnify employees and other agents.

We have obtained a policy of directors' and officers' liability insurance.

We have entered into separate indemnification agreements with our directors and officers. These agreements, among other things, require us to indemnify our directors and officers for any and all expenses (including reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees) judgments, fines and amounts paid in settlement actually and reasonably incurred by such directors or officers or on his or her behalf in connection with any action or proceeding arising out of their services as one of our directors or officers, or any of our affiliates or any other company or enterprise to which the person provides services at our request provided that such person follows the procedures for determining entitlement to indemnification and advancement of expenses set forth in the indemnification agreement. We believe that these bylaw provisions and indemnification agreements are necessary to attract and retain qualified persons as directors and officers.

The limitation of liability and indemnification provisions in our bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. They may also reduce the likelihood of derivative litigation against directors and officers, even though an action, if successful, might provide a benefit to us and our stockholders. Our results of operations and financial condition may be harmed to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Transfer Agent and Registrar**

The transfer agent and registrar for our Common Stock is ClearTrust Stock Transfer Company, Inc.

**Trading Symbol and Market**

We intend to apply to list our Common Stock on NYSE American under the symbol " ".

**SHARES ELIGIBLE FOR FUTURE SALE**

Immediately prior to this Offering, there was no public market for our Common Stock, and no predictions can be made about the effect, if any, that market sales of our Common Stock or the availability of such shares for sale will have on the market price prevailing from time to time. Nevertheless, future sales of our Common Stock in the public market, or the perception that such sales may occur, could adversely affect the market price of our Common Stock and could impair our ability to raise capital through future sales of our securities. See "*Risk Factors - Risks Relating to this Offering - A substantial portion of our total issued and outstanding shares may be sold into the market at any time. This could cause the market price of our Common Stock to drop significantly, even if our business is doing well*." Furthermore, although we intend to apply to have our Common Stock listed on NYSE American, we cannot assure you that there will be an active public trading market for our Common Stock.

Upon the closing of this Offering, based on the number of shares of our Common Stock outstanding as of , 2025, we will have an aggregate of 25,000,000 shares of our Common Stock outstanding. Of these shares of our Common Stock, all of the shares sold in this Offering (or shares if the underwriter exercises in full its option to purchase additional shares) will be freely tradable without restriction or further registration under the Securities Act, except for any shares purchased by our "affiliates," as that term is defined in Rule144 under the Securities Act, whose sales would be subject to the Rule144 resale restrictions described below, other than the holding period requirement.

Of the remaining shares of our Common Stock, approximately 20,000,000 will be "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rules 144 or 701 under the Securities Act, which are summarized below. We expect that substantially all of these shares will be subject to lock-up agreements restricting resale for 180 days following the closing of this offering, with a 12-month lock-up applicable to our directors and officers. Upon expiration of these lock-up period, we estimate that approximately 20,000,000 shares of our Common Stock will be available for sale in the public market, subject in some cases to applicable volume limitations under Rule 144.

**Lock-Ups**

Pursuant to "lock-up" agreements, we, our executive officers and directors, and our sole stockholder prior to completion of this offering, have agreed, without the prior written consent of the representative not to directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of (or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by any person at any time in the future of) our Common Stock, enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of shares of our Common Stock, make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of Common Stock or securities convertible into or exercisable or exchangeable for Common Stock or any other securities of ours or publicly disclose the intention to do any of the foregoing, subject to customary exceptions, for a period of six (6) months after the date of this prospectus in the case of the Company and all securityholders generally, and twelve (12) months in the case of our directors and executive officers.

**Rule 144**

*Affiliate Resales of Restricted Securities.* In general, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, a person who is an affiliate of ours, or who was an affiliate at any time during the 90 days before a sale, who has beneficially owned shares of our Common Stock for at least six months would be entitled to sell in "brokers transactions" or certain "riskless principal transactions" or to market makers, a number of shares within any three month-period that does not exceed the greater of:

● 1% of the number of our Common Stock then outstanding, which will equal approximately 93,150 shares of our Common Stock immediately after this Offering; or

● the average weekly reported trading volume in shares of
 our Common Stock on NYSE American during the four calendar weeks preceding the date on which a notice of the sale on Form
 144 is filed with the SEC with respect to such sale.

Affiliates resales under Rule 144 are also subject to the availability of current public information about us. In addition, if the number of shares being sold under Rule 144 by an affiliate during any three-month period exceeds 5,000 shares or has an aggregate sale price in excess of $50,000, the seller must file a notice on Form 144 with the SEC and NYSE American concurrently with either the placing of a sale order with the broker or the execution directly with a market maker**.**

*Non-Affiliate Resales of Restricted Securities.* In general, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, a person who is not an affiliate of ours at the time of sale, and has not been an affiliate at any time during the three months preceding a sale, and who has beneficially owned shares of our Common Stock for at least six months but less than a year, is entitled to sell such shares subject only to the availability of current public information about us. If such person has held our shares for at least one year, such person can resell under Rule 144(b)(1) without regard to any Rule 144 restrictions, including the 90-day public company requirement and the current public information requirement.

Non-affiliate resales are not subject to manner of sale, volume limitation or notice filing provisions of Rule 144.

**Rule 701**

In general, under Rule 701 of the Securities Act, each of our employees, officers, directors, consultants or advisors who purchases shares of our Common Stock from us in connection with a compensatory stock or option plan or other written agreement executed before the effective date of the registration statement under the Securities Act is entitled to resell such shares 90 days after such effective date in reliance on Rule 144. An affiliate of ours can resell shares in reliance on Rule 144 without having to comply with the holding period requirement, and non-affiliates of ours can resell shares in reliance on Rule 144 without having to comply with the current public information and holding period requirements.

The SEC has indicated that Rule 701 will apply to typical options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of such options, including exercises after an issuer becomes subject to the reporting requirements of the Exchange Act. Following the offering, we intend to file a registration statement on Form S-8 under the Securities Act covering approximately shares of Common Stock issued or issuable upon the exercise of stock options, subject to outstanding options or reserved for issuance under our employee and director stock benefit plans. Accordingly, shares registered under the registration statement will, subject to Rule 144 provisions applicable to affiliates, be available for sale in the open market, except to the extent that the shares are subject to vesting restrictions or the contractual restrictions described above.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO**

**NON-U.S. HOLDERS OF OUR COMMON STOCK**

The following discussion is a summary of the material U.S. federal income tax consequences to non-U.S. holders (as defined below) of the purchase, ownership and disposition of our Common Stock issued pursuant to this Offering, but does not purport to be a complete and comprehensive analysis of all potential tax consequences. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or foreign tax laws are not addressed herein. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the U.S. Internal Revenue Service (the "IRS"), in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a non-U.S. holder of our Common Stock. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the purchase, ownership and disposition of our Common Stock.

This discussion is limited to non-U.S. holders that hold our Common Stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a non-U.S. holder's particular circumstances, including the impact of the alternative minimum tax or the impact of the Medicare contribution tax on net investment income. In addition, it does not address consequences relevant to non-U.S. holders subject to special rules, including, without limitation:

● U.S. expatriates and certain former citizens or long-term residents of the United States;

● persons holding our Common Stock as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment;

● banks, insurance companies, and other financial institutions;

● brokers, dealers or traders in securities or currencies;

● persons that hold more than 5% of our Common Stock, directly or indirectly;

● "controlled foreign corporations," "passive foreign investment companies," and corporations that accumulate earnings to avoid U.S. federal income tax;

● corporations organized outside of the United States, any state thereof or the District of Columbia that are nonetheless treated as U.S. taxpayers for U.S. federal income tax purposes;

● partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);

● tax-exempt organizations or governmental organizations;

● persons deemed to sell our Common Stock under the constructive sale provisions of the Code;

● persons for whom our Common Stock constitutes "qualified small business stock" within the meaning of Section 1202 of the Code;

● persons who hold or receive our Common Stock pursuant to the exercise of any employee stock option or otherwise as compensation;

● qualified foreign pension funds as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds;

● persons subject to special tax accounting rules as a result of any item of gross income with respect to our Common Stock being taken into account in an applicable financial statement; and

● tax-qualified retirement plans.

If a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) holds our Common Stock, the tax treatment of a partner (or person or entity treated as a partner) will generally depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our Common Stock and the partners in such partnerships should consult their tax advisors regarding the United States federal income tax consequences to them.

**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED AS LEGAL OR TAX ADVICE AND DOES NOT SERVE AS A SUBSTITUTE FOR CAREFUL TAX PLANNING. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.**

***Definition of a Non-U.S. Holder***

For purposes of this discussion, a "non-U.S. holder" is any beneficial owner of our Common Stock that is neither a "U.S. person," nor an entity treated as a partnership for U.S. federal income tax purposes regardless of its place of organization or formation. A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of the United States, any state thereof, or the District of Columbia;

● an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

● a trust that (1) is subject to the primary supervision of a U.S. court and which has one or more U.S. persons (within the meaning of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust, or has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

***Distributions***

As described in the section titled "Dividend Policy," we do not anticipate declaring or paying dividends to holders of our Common Stock in the foreseeable future. However, if we do make distributions on our Common Stock, such distributions of cash or property on our Common Stock will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a non-U.S. holder's adjusted tax basis in its Common Stock, but not below zero. Any excess will be treated as capital gain and will be treated as described below under "- Sale or Other Disposition of Common Stock."

Subject to the discussion below on effectively connected income, backup withholding and foreign accounts, dividends paid to a non-U.S. holder of our Common Stock that are not effectively connected with the non-U.S. holder's conduct of a trade or business within the United States will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the non-U.S. holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate). Non-U.S. holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty.

Non-U.S. holders may be entitled to a reduction in or an exemption from withholding on dividends as a result of either (a) an applicable income tax treaty or (b) the non-U.S. holder holding our Common Stock in connection with the conduct of a trade or business within the United States and dividends being effectively connected with that trade or business. To claim such a reduction in or exemption from withholding, the non-U.S. holder must provide the applicable withholding agent with a properly completed and executed (a) IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) claiming an exemption from or reduction of the withholding tax under the benefit of an income tax treaty between the United States and the country in which the non-U.S. holder resides or is established, or (b) IRS Form W-8ECI stating that the dividends are not subject to withholding tax because they are effectively connected with the conduct by the non-U.S. holder of a trade or business within the United States, as may be applicable. These certifications must be provided to the applicable withholding agent prior to the payment of dividends and must be updated periodically. If a non-U.S. holder holds stock through a financial institution or other agent acting on the non-U.S. holder's behalf, the non-U.S. holder will be required to provide appropriate documentation to such agent. The non-U.S. holder's agent will then be required to provide certification to us or our paying agent, either directly or through other intermediaries. Non-U.S. holders that do not timely provide the applicable withholding agent with the required certification, but that qualify for a reduced rate under an applicable income tax treaty, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Special certification and other requirements apply to certain non-U.S. holders that are pass-through entities (e.g., partnerships) rather than corporations or individuals.

If dividends paid to a non-U.S. holder are effectively connected with the non-U.S. holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the non-U.S. holder maintains a permanent establishment in the United States to which such dividends are attributable), then, although exempt from U.S. federal withholding tax (provided the non-U.S. holder provides appropriate certification, as described above), the non-U.S. holder will be subject to U.S. federal income tax on such dividends on a net income basis at the regular U.S. federal income tax rates. In addition, a non-U.S. holder that is a corporation may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty, provided the non-U.S. holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate) on its effectively connected earnings and profits for the taxable year that are attributable to such dividends, as adjusted for certain items. Non-U.S. holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty.

***Sale or Other Disposition of Common Stock***

Subject to the discussions below on backup withholding and FATCA, a non-U.S. holder generally will not be subject to U.S. federal income tax on any gain realized upon the sale or other disposition of our Common Stock unless:

● the gain is effectively connected with the non-U.S. holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the non-U.S. holder maintains a permanent establishment in the United States to which such gain is attributable);

● the non-U.S. holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

● our Common Stock constitute U.S. real property interests, or USRPIs, by reason of our status as a U.S. real property holding corporation, or USRPHC, for U.S. federal income tax purposes at any time within the shorter of the five-year period preceding such disposition or such non-U.S. holder's holding period.

Gain described in the first bullet point above will generally be subject to U.S. federal income tax on a net income basis at the regular U.S. federal income tax rates. A non-U.S. holder that is a foreign corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

A non-U.S. holder described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on gain realized upon the sale or other taxable disposition of our Common Stock, which may be offset by certain U.S. source capital losses of the non-U.S. holder (even though the individual is not considered a resident of the United States) provided the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we would be a USRPHC if our USRPIs comprise (by fair market value) at least 50% of our business assets. We believe we currently are not, and do not anticipate becoming, a USRPHC. Because the determination of whether we are a USRPHC depends, however, on the fair market value of our USRPIs relative to the fair market value of our other business assets and our non-U.S. real property interests, there can be no assurance we currently are not a USRPHC or will not become one in the future. Even if we are or were to become a USRPHC, gain arising from the sale or other taxable disposition of our Common Stock by a non-U.S. holder will not be subject to U.S. federal income tax if our Common Stock is "regularly traded," as defined by applicable Treasury Regulations, on an established securities market, and such non-U.S. holder owned, actually and constructively, 5% or less of our Common Stock throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition or the non-U.S. holder's holding period. There can be no assurance that our Common Stock will continue to qualify as regularly traded on an established securities market. If any gain on your disposition is taxable because we are a USRPHC and your ownership of our Common Stock exceeds 5%, you will be taxed on such disposition generally in the manner as gain that is effectively connected with the conduct of a U.S. trade or business (subject to the provisions under an applicable income tax treaty), except that the branch profits tax generally will not apply.

Non-U.S. holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

***Information Reporting and Backup Withholding***

Subject to the discussion below on FATCA, payments of dividends on our Common Stock will not be subject to backup withholding, provided the applicable withholding agent does not have actual knowledge or reason to know such holder is a U.S. person and the holder either certifies under penalties of perjury its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or otherwise establishes an exemption. However, information returns are required to be filed with the IRS in connection with any distributions (including deemed distributions) on our Common Stock paid to the non-U.S. holder, regardless of whether such distributions constitute dividends or whether any tax was actually withheld. Such information returns generally include the amount of any such dividends, the name and address of the recipient, and the amount, if any, of tax withheld. A similar report is sent to the holder to whom any such dividends are paid. In addition, proceeds of the sale or other taxable disposition of our Common Stock within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting if the applicable withholding agent receives the certification described above and does not have actual knowledge or reason to know that such holder is a U.S. person or the holder otherwise establishes an exemption. Proceeds of a disposition of our Common Stock conducted through a non-U.S. office of a non-U.S. broker that does not have certain enumerated relationships with the United States generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRAS may also be made available under the provisions of an applicable treaty or agreement to the tax authorities of the country in which the non-U.S. holder resides or is established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a non-U.S. holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

***Additional Withholding Tax on Payments Made to Foreign Accounts***

Withholding taxes may be imposed under Sections 1471 to 1474 of the Code and applicable Treasury Regulations (such Sections commonly referred to as the Foreign Account Tax Compliance Act, or FATCA), on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from the sale or other disposition of our Common Stock paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code) (including, in some cases, when such foreign financial institution or non-financial foreign entity is acting as an intermediary), unless (1) the foreign financial institution undertakes certain diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States-owned foreign entities" (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our Common Stock. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of stock on or after January 1, 2019, proposed Treasury Regulations, eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.

We will not pay additional amounts or "gross up" payments to holders as a result of any withholding or deduction for taxes imposed under FATCA. Under certain circumstances, a non-U.S. holder might be eligible for refunds or credits of such taxes. Prospective investors should consult their tax advisors regarding the potential application of FATCA to their investment in our Common Stock.

**EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN TAX ADVISOR REGARDING THE TAX CONSEQUENCES OF PURCHASING, HOLDING AND DISPOSING OF OUR COMMON STOCK, INCLUDING THE CONSEQUENCES OF ANY RECENT OR PROPOSED CHANGE IN APPLICABLE LAW.**

**UNDERWRITING**

ThinkEquity LLC ("ThinkEquity" or the "Underwriter") is acting as sole book-runner. Subject to the terms and conditions of an underwriting agreement between us and the Underwriter, we have agreed to sell to each underwriter named below, and each underwriter named below has severally agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of shares of Common Stock listed next to its name in the following table:

---

| | |
|:---|:---|
| **Name of Underwriter** | **Number of<br> Shares of<br> Common<br> Stock** |
| ThinkEquity LLC |  |
| Total |  |

---

The underwriting agreement provides that the obligation of the underwriter to purchase all of the shares of Common Stock being offered to the public is subject to specific conditions, including the absence of any material adverse change in our business or in the financial markets and the receipt of certain legal opinions, certificates and letters from us, our counsel and the independent auditors. The underwriting agreement also provides that if an underwriter defaults, the purchase commitments of non-defaulting underwriters may be increased or the Offering may be terminated. Subject to the terms of the underwriting agreement, the underwriters will purchase all of the shares of Common Stock being offered to the public, other than those covered by the over-allotment option described below, if any of these shares of Common Stock are purchased.

The Underwriter is offering the shares of Common Stock, subject to prior sale, when, as and if issued to and accepted by them, subject to approval of legal matters by their counsel and other conditions specified in the underwriting agreement. The Underwriter reserves the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

**Over-Allotment Option**

We have granted to the Underwriter an option to purchase an additional fifteen percent (15.0%) of the total number of shares of this Offering, exercisable no later than 45 calendar days after the date of the underwriting agreement, to purchase, based on the assumed offering price, up to an additional 750,000 shares of Common Stock at the public offering price listed on the cover page of this prospectus, less underwriting discounts and commissions. The Underwriter may exercise this option only to cover over-allotments, if any, made in connection with this Offering and may exercise this option to purchase additional shares. To the extent the option is exercised and the conditions of the underwriting agreement are satisfied, we will be obligated to sell to the Underwriter, and the Underwriter will be obligated to purchase, these additional shares of Common Stock.

**Discounts and Commissions**

The following table shows the public offering price, underwriting discount and proceeds, before expenses, to us. The information assumes either no exercise or full exercise by the Underwriter of the over-allotment option.

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share<br> of Common<br> Stock** | **Total<br> (No Exercise)** | **Total<br> (Full Exercise)** |
| Public offering price | $| $| $|
| Underwriting discounts and commissions (7.5%) |  |  |  |
| Proceeds, before expenses, to us | $| $| $|

---

The Underwriter proposes to offer the shares of Common Stock offered by us to the public at the public offering price per share of Common Stock set forth on the cover of this prospectus. In addition, the Underwriter may offer some of the shares of Common Stock to other securities dealers at such price, less a concession of $ per share of Common Stock. After the Offering, the public offering price and concession to dealers may be changed. We have agreed to pay a non-accountable expense allowance to the Underwriter equal to 1.0%. of the gross proceeds received at the completion of this Offering. We have paid $50,000 to the Underwriter as an advance to be applied towards actual out-of-pocket expenses (the "Advance"). Any portion of the Advance shall be returned back to us to the extent not actually incurred in accordance with Financial Industry Regulation Authority ("FINRA") Rule 5110(g)(4)(A).

We have agreed to reimburse the Underwriter for all of its expenses, including, among other things, (a) all filing fees and communication expenses relating to the registration of the Shares to be sold in the Offering (including the Over-allotment Shares) with the Commission; (b) all filing fees and expenses associated with the review of the Offering by FINRA; (c) all fees and expenses relating to the listing of such Shares on The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq Global Select Market, the NYSE or the NYSE American and on such other stock exchanges as the Company and Underwriter together determine, including any fees charged by The Depository Trust Company (DTC) for new securities; (d) all fees, expenses and disbursements relating to background checks of the Company's officers, directors and entities in an amount not to exceed $15,000 in the aggregate; (e) all fees, expenses and disbursements relating to the registration or qualification of such Shares under the "blue sky" securities laws of such states, if applicable, and other jurisdictions as Underwriter may reasonably designate; (f) all fees, expenses and disbursements relating to the registration, qualification or exemption of such Shares under the securities laws of such foreign jurisdictions as Underwriter may reasonably designate; (g) the costs of all mailing and printing of the underwriting documents (including, without limitation, the Underwriting Agreement, any Blue Sky Surveys and, if appropriate, any Agreement Among Underwriters, Selected Dealers' Agreement, Underwriters' Questionnaire and Power of Attorney), Registration Statements, Prospectuses and all amendments, supplements and exhibits thereto and as many preliminary and final Prospectuses as Underwriter may reasonably deem necessary; (h) the costs and expenses of the public relations firm; (i) the costs of preparing, printing and delivering certificates representing the Shares; (j) fees and expenses of the transfer agent for the Common Stock; (k) stock transfer and/or stamp taxes, if any, payable upon the transfer of securities from the Company to Underwriter; (l) the costs associated with post-Closing advertising the Offering in the national editions of the Wall Street Journal and New York Times; (m) the costs associated with bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones, each of which the Company or its designee will provide within a reasonable time after the Closing in such quantities as the Underwriter may reasonably request, in an amount not to exceed $3,000; (n) the fees and expenses of the Company's accountants; (o) the fees and expenses of the Company's legal counsel and other agents and representatives; (p) the fees and expenses of the Underwriter's legal counsel not to exceed $125,000; (q) the $29,500 cost associated with the use of Ipreo's book building, prospectus tracking and compliance software for the Offering; (r) $10,000 for data services and communications expenses; (s) up to $10,000 of the Underwriter's actual accountable "road show" expenses; and (t) up to $30,000 of the Underwriter's market making and trading, and clearing firm settlement expenses for the Offering.

**Underwriter's Warrants**

We have agreed to issue to the Underwriter (or its permitted assignees) warrants to purchase up to a total 5% of the shares of Common Stock sold in the Offering (the "Underwriter's Warrants"). The Underwriter's Warrants will be exercisable at any time and from time to time, in whole or in part, during the four and one-half year period commencing 180 days from the commencement of sales of the securities in the Offering, at a price per share equal to $, which is 125% of the public offering price per share of Common Stock at the Offering. Pursuant to FINRA Rule 5110(g), the Underwriter's Warrant and any shares issued upon exercise of the Underwriter's Warrants shall not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales of this Offering, except the transfer of any security: (i) by operation of law or by reason of our reorganization; (ii) to any FINRA member firm participating in the Offering and the officers or partners thereof, if all securities so transferred remain subject to the lock-up restriction set forth above for the remainder of the time period; (iii) if the aggregate amount of our securities held by the underwriter or related persons does not exceed 1% of the securities being offered; (iv) that is beneficially owned on a pro rata basis by all equity owners of an investment fund, provided that no participating member manages or otherwise directs investments by the fund and the participating members in the aggregate do not own more than 10% of the equity in the fund; or (v) the exercise or conversion of any security, if all securities remain subject to the lock-up restriction set forth above for the remainder of the time period.

In addition, the Underwriter's Warrants provide for registration rights upon request, in certain cases. The sole demand registration right provided will not be greater than five years from the date of the underwriting agreement in compliance with FINRA Rule 5110(g)(8)(C). The piggyback registration rights provided will a one-time demand registration right and unlimited piggyback rights consistent with FINRA Rule 5110). We will bear all fees and expenses attendant to registering the securities issuable on exercise of the warrants other than underwriting commissions incurred and payable by the holders. The exercise price and number of shares issuable upon exercise of the Underwriter's Warrants may be adjusted in certain circumstances including in the event of a stock dividend or our recapitalization, reorganization, merger or consolidation. However, the warrant exercise price or underlying shares will not be adjusted for issuances of shares of Common Stock at a price below the warrant exercise price.

**Determination of Offering Price**

The offering price has been negotiated between the Underwriter and us. In determining the offering price of the securities, the following factors were considered:

● prevailing market conditions;

● our historical performance and capital structure;

● estimates of our business potential and earnings prospects;

● an overall assessment of our management; and

● the consideration of these factors in relation to market valuation of companies in related businesses.

**Listing Application**

We intend to apply for our Common Stock to be listed on NYSE American under the symbol " ". The consummation of this Offering is contingent upon the approval of our listing on NYSE American, however, it is unlikely we would meet the initial listing standards of NYSE American unless this Offering is consummated. If our listing application is not approved by NYSE American, we will not consummate the Offering and will terminate this Offering.

**Lock-Up Agreements**

We have agreed that without the approval of the Underwriter, not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any of our securities for a period of six (6) months following the closing of this Offering. Each of our officers, directors and all other securityholders as of the closing date of this offering (and all holders of securities exercisable for or convertible into shares of Common Stock) have agreed to enter into customary "lock-up" agreements in favor of ThinkEquity. Pursuant to these agreements, such persons and entities have agreed, without the prior written consent of ThinkEquity, not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of, or otherwise dispose of any securities of the Company for a period of twelve (12) months from the closing date of this offering in the case of our officers and directors, and six (6) months in the case of all other securityholders. These restrictions also apply to the issuance of shares of Common Stock upon the exercise or conversion of outstanding derivative securities, unless otherwise approved by ThinkEquity.

Additionally, we agreed that for a period of twelve (12) months following the closing of this Offering, we will not directly or indirectly offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of our shares of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock in any "at-the-market", continuous equity or variable rate transaction, without the prior consent of ThinkEquity.

ThinkEquity may in its sole discretion and at any time without notice release some or all of the shares subject to lock-up agreements prior to the expiration of the lock-up period. When determining whether or not to release shares from the lock-up agreements, the representative will consider, among other factors, the security holder's reasons for requesting the release, the number of shares for which the release is being requested and market conditions at the time.

**Right of First Refusal**

We have granted the Underwriter a right of first refusal, for a period of eighteen (18) months from the closing of this Offering, to act as sole investment banker, back-runner and/or sole placement agent for any and all future public or private equity offering, including all equity-linked or debt offerings during such eighteen (18) month period of the Company, or any successor to or any subsidiary of the Company. We have agreed not to offer to retain any entity or person in connection with any such offering on terms more favorable than terms on which we offer to retain the Underwriter. Such offer shall be made in writing in order to be effective. The Underwriter shall notify us within ten (10) business days of its receipt of the written offer contemplated above as to whether it agrees to accept such retention. If the Underwriter should decline such retention, we shall have no further obligations to the Underwriter with respect to the Offering for which it has offered to retain the Underwriter.

**Tail**

We have also agreed to pay the Underwriter a tail fee consisting of a cash fee and warrants equal to the cash compensation payable to the Underwriter in this Offering, if any investor, who was contacted or introduced to us by the Underwriter, following the termination or expiration of the engagement by the Company prior to Closing, provides us with capital in any public or private equity offering or other financing or capital raising transaction during the twelve (12) month period following expiration or termination of our engagement of the Underwriter, provided, however, that we have the right to terminate its engagement of the underwriter for cause in compliance with FINRA Rule 5110(g)(5) (B)(i), which termination for cause eliminates the Company's obligations with respect to the tail.

**Indemnification**

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters may be required to make for these liabilities.

**Other Relationships**

Some of the underwriters and their affiliates have engaged in, and may in the future engage in, investment banking and other commercial dealings in the ordinary course of business with us or our affiliates. They have received, or may in the future receive, customary fees and commissions for these transactions.

**Price Stabilization, Short Positions, and Penalty Bids**

In connection with this Offering, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of our securities. Specifically, the underwriters may over-allot in connection with this Offering by selling more securities than are set forth on the cover page of this prospectus. This creates a short position in our securities for its own account. The short position may be either a covered short position or a naked short position. In a covered short position, the number of securities over-allotted by the underwriters is not greater than the number of securities that they may purchase in the over-allotment option. In a naked short position, the number of securities involved is greater than the number of shares of Common Stock in the over-allotment option. To close out a short position, the underwriters may elect to exercise all or part of the over-allotment option. The underwriters may also elect to stabilize the price of our securities or reduce any short position by bidding for, and purchasing, securities in the open market.

The underwriters may also impose a penalty bid. This occurs when a particular underwriter or dealer repays selling concessions allowed to it for distributing a security in this Offering because the underwriter repurchases that security in stabilizing or short covering transactions.

Finally, the underwriters may bid for, and purchase, securities in market making transactions, including "passive" market making transactions as described below.

These activities may stabilize or maintain the market price of our securities at a price that is higher than the price that might otherwise exist in the absence of these activities. The underwriters are not required to engage in these activities, and may discontinue any of these activities at any time without notice.

In connection with this Offering, the underwriters and selling group members, if any, or their affiliates may engage in passive market making transactions in our Common Stock immediately prior to the commencement of sales in this Offering, in accordance with Rule 103 of Regulation M under the Exchange Act. Rule 103 generally provides that:

● a passive market maker may not effect transactions or display bids for our securities in excess of the highest independent bid price by persons who are not passive market makers;

● net purchases by a passive market maker on each day are generally limited to 30% of the passive market maker's average daily trading volume in our securities during a specified two-month prior period or 200 shares, whichever is greater, and must be discontinued when that limit is reached; and

● passive market making bids must be identified as such.

**Electronic Distribution**

A prospectus in electronic format may be made available on a website maintained by the representatives of the underwriters and may also be made available on a website maintained by other underwriters. The underwriters may agree to allocate a number of shares to underwriters for sale to their online brokerage account holders. Internet distributions will be allocated by the representatives of the underwriters to underwriters that may make Internet distributions on the same basis as other allocations. In connection with the Offering, the underwriters or syndicate members may distribute prospectuses electronically. No forms of electronic prospectus other than prospectuses that are printable as Adobe® PDF will be used in connection with this Offering.

The underwriters have informed us that they do not expect to confirm sales of shares offered by this prospectus to accounts over which they exercise discretionary authority.

Other than the prospectus in electronic format, the information on any underwriter's website and any information contained in any other website maintained by an underwriter is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or any underwriter in its capacity as underwriter and should not be relied upon by investors.

**Offer Restrictions Outside the United States** 

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the Offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**European Economic Area**

In relation to each member state of the European Economic Area that has implemented the Prospectus Directive (each, a relevant member state), with effect from and including the date on which the Prospectus Directive is implemented in that relevant member state (the relevant implementation date), an offer of shares described in this prospectus may not be made to the public in that relevant member state other than:

● to any legal entity which is a qualified investor as defined in the Prospectus Directive;

● to fewer than 100 or, if the relevant member state has implemented the relevant provision of the 2010 PD Amending Directive, 150 natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the relevant Dealer or Dealers nominated by us for any such offer; or

● in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of shares shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Directive.

For purposes of this provision, the expression an "offer of securities to the public" in any relevant member state means the communication in any form and by any means of sufficient information on the terms of the offer and the shares to be offered so as to enable an investor to decide to purchase or subscribe for the shares, as the expression may be varied in that member state by any measure implementing the Prospectus Directive in that member state, and the expression "Prospectus Directive" means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the relevant member state) and includes any relevant implementing measure in the relevant member state. The expression 2010 PD Amending Directive means Directive 2010/73/EU.

The sellers of the shares have not authorized and do not authorize the making of any offer of shares through any financial intermediary on their behalf, other than offers made by the underwriters with a view to the final placement of the shares as contemplated in this prospectus. Accordingly, no purchaser of the shares, other than the underwriters, nis authorized to make any further offer of the shares on behalf of the sellers or the underwriters.

**United Kingdom**

This prospectus is only being distributed to, and is only directed at, persons in the United Kingdom that are qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive that are also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (each such person being referred to as a "relevant person"). This prospectus and its contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other persons in the United Kingdom. Any person in the United Kingdom that is not a relevant person should not act or rely on this document or any of its contents.

**Switzerland**

The shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (the "SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document does not constitute a prospectus within the meaning of and has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the shares or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, the Company, the shares have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of shares will not be supervised by, the Swiss Financial Market Supervisory Authority FINMA (the "FINMA"), and the offer of shares has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes (the "CISA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of shares.

**Singapore**

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of our securities may not be circulated or distributed, nor may the securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA")) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where our securities are subscribed or purchased under Section 275 by a relevant person which is a corporation (which is not an accredited investor as defined in Section 4A of the SFA) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities or securities-based derivatives contracts (each as defined in Section 2(1) of the SFA) of that corporation shall not be transferable for six months after that corporation has acquired our securities under Section 275 except: (a) to an institutional investor under Section 274 of the SFA or to a relevant person, (b) where such transfer arises from an offer in that corporation's securities pursuant to Section 275(1A) of the SFA, and in accordance with the conditions, specified in Section 275 of the SFA; (c) where no consideration is or will be given for the transfer; (d) where such transfer is by operation of law; or (e) as specified in Section 276(7) of the SFA.

Where the securities are subscribed or purchased under Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for six months after that trust has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person, (2) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than S$200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, or (5) as specified in Section 276(7) of the SFA.

**Hong Kong**

Our securities may not be offered or sold by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), (ii) to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules made thereunder or (iii) in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), and no advertisement, invitation or document relating to the securities may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the laws of Hong Kong) other than with respect to the securities which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules made thereunder.

**People's Republic of China**

This prospectus will not be circulated or distributed in the People's Republic of China (PRC) and the shares will not be offered or sold and will not be offered or sold to any person for re-offering or resale directly or indirectly to any residents of the PRC except pursuant to any applicable laws and regulations of the PRC. Neither this prospectus nor any advertisement or other offering material may be distributed or published in the PRC, except under circumstances that will result in compliance with applicable laws and regulations.

**LEGAL MATTERS**

The validity of the shares of Common Stock covered by this prospectus will be passed upon for us by Lucosky Brookman LLP, Woodbridge, New Jersey. Certain legal matters relating to the offering will be passed upon for the underwriter by Sichenzia Ross Ference Carmel LLP, New York, New York.

**EXPERTS**

The financial statements of Off The Hook as of and for the years ended December 31, 2024 and 2023 appearing in this prospectus have been audited by M&K CPAS, PLLC, independent registered public accounting firm, as stated in their report appearing herein. Such financial statements are included in this prospectus and registration statement in reliance upon the report appearing elsewhere herein, and upon the authority of such firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of Common Stock offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules filed therewith. For further information about us and the shares of Common Stock offered hereby, we refer you to the registration statement and the exhibits and schedules filed thereto. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement. Upon completion of this Offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Exchange Act. You may obtain information on the operation of the public reference rooms by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about registrants, like us, that file electronically with the SEC. The address of that site is *<u>www.sec.gov</u>*.

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| **Unaudited Financial Statements** |  |
| [Condensed Combined Balance Sheets as of March 31, 2025 and December 31, 2024](#Da_001) | F-2 |
| [Condensed Combined Statements of Operations for the Three Months Ended March 31, 2025 and 2024](#Da_002) | F-3 |
| [Condensed Combined Statements of Changes in Members' Equity for the Three Months Ended March 31, 2025 and 2024](#Da_003) | F-4 |
| [Condensed Combined Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024](#Da_004) | F-5 |
| [Notes to Combined Financial Statements for the Three Months Ended March 31, 2025 and 2024](#Da_005) | F-6 |
| **Audited Financial Statements** |  |
| [Report of Independent Registered Public Accounting Firm](#SL_001) (PCAOB #2738) | F-27 |
| [Combined Balance Sheets as of December 31, 2024 (As restated) and 2023](#sw_002) | F-28 |
| [Combined Statements of Operations for the Years Ended December 31, 2024 (As restated) and 2023](#sw_003) | F-29 |
| [Combined Statements of Changes in Members' Equity for the Years Ended December 31, 2024 (As restated) and 2023](#sw_004) | F-30 |
| [Combined Statements of Cash Flows for the Years Ended December 31, 2024 (As restated) and 2023](#sw_005) | F-31 |
| [Notes to Combined Financial Statements for the Years Ended December 31, 2024 and 2023](#sw_006) | F-32 |

---

**OFF THE HOOK YS INC. AND AFFILIATES**

**Unaudited Condensed Combined Balance Sheets**

**As of March 31, 2025 and December 31, 2024**

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
|  | **(Unaudited)** | **(Audited)** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $934272 | $2927126 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 163648 | 104317 |
| &nbsp;&nbsp;&nbsp;Inventory | 26671418 | 22593422 |
| &nbsp;&nbsp;&nbsp;Prepaid expense | 2920118 | 2388782 |
| &nbsp;&nbsp;&nbsp;Private label receivable | 5127 | 4942 |
| &nbsp;&nbsp;&nbsp;Other current assets | 470513 | 840401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL CURRENT ASSETS | 31165096 | 28858990 |
| **NON-CURRENT ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 436169 | 461709 |
| &nbsp;&nbsp;&nbsp;Other receivable | 44735 | 42192 |
| &nbsp;&nbsp;&nbsp;Private label receivable | 184196 | 185550 |
| &nbsp;&nbsp;&nbsp;Due from related party |  | 11313 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 1403749 | 1505986 |
| &nbsp;&nbsp;&nbsp;Goodwill | 570000 | 570000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL NON-CURRENT ASSETS | 2638849 | 2776750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $33803945 | $31635740 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $583202 | $962725 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 433485 | 507284 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, current | 367227 | 382731 |
| &nbsp;&nbsp;&nbsp;Line of credit | 2833400 | 2833400 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 116691 | 137468 |
| &nbsp;&nbsp;&nbsp;Due to related party | 1372825 | 1422540 |
| &nbsp;&nbsp;&nbsp;Customer deposit | 1397246 | 2350219 |
| &nbsp;&nbsp;&nbsp;Floor plan notes payable | 24660132 | 20595517 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 99828 | 110547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL CURRENT LIABILITIES | 31864036 | 29302431 |
| **LONG-TERM LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt, noncurrent | 221401 | 229295 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, noncurrent | 1053250 | 1136624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LONG-TERM LIABILITIES | 1274651 | 1365919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | 33138687 | 30668350 |
| **MEMBERS' DEFICIT** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, with $0.001 par value, 100,000,000 shares of common stock authorized, 20,000,000 shares of common stock issued and outstanding as of March 31, 2025 and December 31, 2024, respectively\* | 20000 | 20000 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 2774944 | 2774944 |
| &nbsp;&nbsp;&nbsp;Retained earnings | (2129686) | (1827554) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL MEMBERS' EQUITY** | 665258 | 967390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND MEMBERS' EQUITY** | $33803945 | $31635740 |

---

\*Par value per share of common stock, additional paid-in capital and share data have been retrospectively restated to give effect to the reorganization that is discussed in Note 1.

*The accompanying notes are an integral part of these unaudited condensed combined financial statements*

**OFF THE HOOK YS INC. AND AFFILIATES**

**Unaudited Condensed Combined Statements of Operations**

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | 2025 | 2024 |
| Revenues | $27238782 | $20831849 |
| Cost of revenues | 24562153 | 18738526 |
| Gross profit | 2676629 | 2093323 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 36373 | 65343 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 423860 | 461253 |
| &nbsp;&nbsp;&nbsp;Advertising and marketing | 329046 | 127041 |
| &nbsp;&nbsp;&nbsp;Professional services | 54287 | 30806 |
| &nbsp;&nbsp;&nbsp;Salaries and wages | 855282 | 591866 |
| &nbsp;&nbsp;&nbsp;Rent expenses | 157158 | 89875 |
| Total operating expenses | 1856006 | 1366184 |
| Income from operations | 820623 | 727139 |
| Other income (expenses): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (545298) | (406246) |
| &nbsp;&nbsp;&nbsp;Other income | 14449 | 17936 |
| &nbsp;&nbsp;&nbsp;Other expense | - | (106357) |
| Total other income (expenses) | (530849) | (494667) |
| Net Income | $289774 | $232472 |
| Basic and diluted net income per membership shares | $0.01 | $0.01 |
| Basic and diluted weighted average membership shares outstanding | 20000000 | 20000000 |

---

*\*Par value of common stock, additional paid-in capital and share data have been retrospectively restated to give effect to the reorganization that is discussed in Note 1.*

*The accompanying notes are an integral part of these unaudited condensed combined financial statements*

**OFF THE HOOK YS INC. AND AFFILIATES**

**Unaudited Condensed Combined Statements of Changes in Members' Equity**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Retained**<br>**Earnings** | **Total Members'**<br> **Equity** |
| **Balance, December 31, 2023** | **20000000** | $**20000** | $**1813229** | $**(2082949)** | $**(249720)** |
| Imputed Interest |  |  | 10688 |  | 10688 |
| Member Distribution |  |  |  | (559834) | (559834) |
| Net income |  |  |  | 232472 | 232472 |
| **Balance, March 31, 2024** | **20000000** | $**20000** | $**1823917** | $**(2410311)** | $**(566394)** |
| Imputed Interest |  |  | 30058 |  | 30058 |
| Member Contribution - related party loan forgiveness |  |  | 920969 |  | 920969 |
| Member Distribution |  |  |  | (176455) | (176455) |
| Net income |  |  |  | 759212 | 759212 |
| **Balance, December 31, 2024** | **20000000** | $**20000** | $**2774944** | $**(1827554)** | $**967390** |
| Member Distribution |  |  |  | (591906) | (591906) |
| Net loss |  |  |  | 289774 | 289774 |
| **Balance, March 31, 2025** | **20000000** | $**20000** | $**2774944** | $**(2129686)** | $**665258** |

---

\*Par value of common stock, additional paid-in capital and share data have been retrospectively restated to give effect to the reorganization that is discussed in Note 1.

*The accompanying notes are an integral part of these unaudited condensed combined financial statements.*

**OFF THE HOOK YS INC. AND AFFILIATES**

**Unaudited Condensed Combined Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $289774 | $232472 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 36373 | 65343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imputed interest |  | 10688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (59331) | (237936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private label receivable | 1169 | 14183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivable | (2543) | (28641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (4077996) | (850972) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expense | (531336) | 942825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 369888 | (459130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from related parties | 11313 | 3700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 102237 | 50217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (379523) | 337048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (73799) | (117173) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer deposits | (952973) | (111692) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | (10719) | 572522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (98878) | (49489) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (5376344) | 373965 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of fixed assets | (10833) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (10833) | - |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from line of credit |  | 553612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Member distribution | (591906) | (559834) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceed from short-term loan payable |  | 54687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceed from floorplan notes payables | 18623348 | 8302416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment to floor plan notes payable | (14558733) | (7620475) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment to long-term debt | (28671) | (26017) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from related party debts | 9103 | 87515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments on related party debts | (58818) | (95930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 3394323 | 695974 |
| Net change in cash | (1992854) | 1069939 |
| Cash and cash equivalents, beginning of period | $2927126 | 1654631 |
| Cash and cash equivalents, end of period | $934272 | $2724570 |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | 525690 | 395559 |
| &nbsp;&nbsp;**NON-CASH INVESTING AND FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Establishment of ROU assets and liabilities | $- | $389951 |

---

*The accompanying notes are an integral part of these unaudited condensed combined financial statements*

**OFF THE HOOK YS INC. AND AFFILIATES**

**NOTES TO FINANCIAL STATEMENTS**

**March 31, 2025 and December 31, 2024**

**NOTE 1. NATURE OF BUSINESS AND ORGANIZATION**

Off The Hook YS Inc. (the "OTH") is a company established in Nevada. It is a holding company established on January 3, 2025 with no business operation. Off The Hook Yacht Sales NC, LLC (the "OTHYS") and OTH Simon Marine YF, LLC (the "Boat Center") sell yachts and boats to the public. Azure Funding, LLC (the "Azure") is a recreational loan broker and lender, focused on providing financing services to individuals for marine, aviation and recreational vehicle purchases. OTH, OTHYS, Boat Center and Azure collectively referred to as the Company. The Company engages primarily in the retail sale, brokerage, and service of new and pre-owned boats, yachts and trailers, and offers slip and storage accommodation in certain locations. The Company also arranges related boat financing, insurance, and extended service contracts for customers with Azure or third-party lenders and insurance companies. The following list details the ownership interests of the entities; these entities are directly and indirectly controlled by Jason Ruegg.

---

| | |
|:---|:---|
| **Entity** | **Ownership Interests** |
| Off The Hook YS Inc. | 100% owned by Jason Ruegg |
| Off the Hook Yacht Sales NC, LLC(OTHYS) | 100% owned by Ruegg Capital Group, Inc. |
| Azure Funding, LLC (Azure) | - Katie Ruegg: 10% |
| Azure Funding, LLC (Azure) | - Glenn Overton: 22.5% |
| Azure Funding, LLC (Azure) | - Jason Ruegg: 67.5% |
| OTH Simon Marine YF LLC (Boat Center) | - Jason Ruegg: 75% |
| OTH Simon Marine YF LLC (Boat Center) | - Corey Simon: 25% |

---

In preparation for listing ("Listing") on the U.S. Exchange Market, holders of equity interests (the "OTH Owners") in OTHYS, Boat Center and Azure(the "OTH Companies") agreed to undertake a restructuring of their ownership interests in the OTH Companies by consolidating such companies under OTH, which upon completion of the consolidation, the OTH Owners collectively own 100% of the issued and outstanding shares of common stock of OTH, and each of the OTH Companies will be a wholly owned subsidiary of OTH.

Immediately before and after the Reorganization as described above, OTH and Operating Subsidiaries were effectively controlled by the same controlling shareholders, and given no change on control, the transaction is accounted for as business combination under common control.

For financial reporting purpose, the contribution of Operating Subsidiaries represented a transaction between entities under common control, resulted in a change in reporting entity and required retrospective combination of entities for all periods presented, as if the combination has been in effect since the inception of common control. Accordingly, the combined financial statements of OTH and Operating Subsidiaries reflect the accounting of the combined subsidiaries at historical carrying values, except that equity reflects the equity of OTH.

**NOTE 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The Company's unaudited condensed combined financial statements and the notes thereto have been prepared in accordance with Generally Accepted Accounting Principles ("U.S. GAAP") in the United States of America and pursuant to the rules and regulations of the Securities Exchange Commission ("SEC") for interim reporting. The Company's fiscal year end date is December 31. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed combined financial statements have been prepared on the same basis as its annual combined financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2025, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in the combined financial statements.

The combined financial statements include the financial statements of the entities noted in Note 1 above.

These unaudited condensed combined financial statements should be read in conjunction with the Company's audited combined financial statements and the notes thereto included in with this filing for the year ended December 31, 2024.

***Emerging Growth Company Status***

The Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which opted out of utilizing the emerging growth company reduced reporting requirements difficult.

***Use of Estimates and Assumptions***

The preparation of combined financial statements in conformity with U.S. GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Significant estimates required to be made by management, include, but are not limited to, the allowance for doubtful accounts, allowance for deferred tax assets, uncertain tax position, incremental borrowing rates used in calculation of the operating lease right-of-use assets and operating lease liabilities and the estimated cost and the input measure method used in revenue recognition. Actual results could differ from those estimates, and as such, differences could be material to the combined financial statements.

***Cash and Cash Equivalents***

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The Company had no cash equivalents. The Company considered highly liquid investments that were readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use.

Restricted cash represents the deposits held in designated bank accounts for security of the repayment of the notes payable. The Company has no restricted cash as of March 31, 2025 and December 31, 2024, respectively.

***Accounts Receivable, net***

Accounts receivables are recorded at invoiced amounts, net of an allowance for credit losses, and do not bear interest. In accordance with Accounting Standards Update No. 2016-13 *"Financial Instruments—Credit Losses" ("ASC 326")*, the Company measures its allowance for credit losses using an expected credit loss model that reflects the Company's current estimate of expected credit losses inherent in the enterprise and the accounts receivable balance. In determining the expected credit losses, the Company considers its historical loss experience, the aging of its accounts receivable balance, current economic and business conditions, and anticipated future economic events that may impact collectability. The Company reviews its allowance for credit losses periodically and as needed, amounts are written-off when determined to be uncollectible. As of March 31, 2025 and December 31, 2024 , no allowance for credit losses was recognized.

***Inventory, net***

Inventories primarily consist of new and pre-owned boats, including yachts, that are held for sale in the ordinary course of business. These inventories are acquired through two primary channels: (i) direct purchases from manufacturers and vendors, and (ii) trade-ins from customers as part of boat sales transactions. The inventory acquired through trade-ins is initially measured and recognized based on the estimated future selling price of the boat, less a gross profit amount to be realized when the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale.

Inventories are stated at the lower of cost or net realizable value. The cost of the new and pre-owned boat inventory is determined using the specific identification method. In assessing lower of cost or net realizable value, the Company considers the aging of the boats, historical sales of a brand and current market conditions. Parts and accessories are determined using methods which vary by subsidiary and include both the average cost method and first-in, first-out ("FIFO"). As of March 31, 2025 and December 31, 2024, the amount of parts and accessories was immaterial.

***Property, plant and equipment, net***

Property, plant and equipment (including construction in progress) are stated at cost less accumulated depreciation and impairment charges. Depreciation is calculated primarily based on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets except the depreciation method for mold and tooling:

---

| | |
|:---|:---|
|  | **Useful Life** |
| Building and improvements | 39 years |
| Leasehold improvements | The shorter of useful life and lease term |
| Furniture and fixtures | 5-10 years |
| Equipment | 5-10 years |
| Vehicles | 3-5 years |

---

Construction in progress represents manufacturing facilities and equipment under construction and is stated at cost. The capitalization of these costs ceases when construction in progress is transferred to property, plant and equipment and substantially ready for its intended use. No depreciation is recorded for construction in progress.

When assets are retired or otherwise disposed of, the cost, accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the combined statements of operations in the period realized. Maintenance and repairs that do not enhance or extend the asset's useful life are charged to operating expense as incurred.

***Impairment of Long-Lived Assets***

Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will affect the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amounts of those assets are depreciated over their remaining useful life. For the periods presented, we have not recorded any material impairment.

***Goodwill***

We account for acquisitions in accordance with FASB ASC 805, "Business Combinations" ("ASC 805"), and goodwill in accordance with ASC 350, "Intangibles — Goodwill and Other" ("ASC 350"). For business combinations, the excess of the purchase price over the estimated fair value of net assets acquired in a business combination is recorded as goodwill. In accordance with ASC 350, we test goodwill impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairment test is performed during the third fiscal quarter. If the carrying amount of a reporting unit's goodwill exceeds its fair value we recognize an impairment loss in accordance with ASC 350. Based upon our most recent analysis, we determined through our qualitative assessment that it is not "more likely than not" that the fair values of our reporting units are less than their carrying values. As a result, we were not required to perform a quantitative goodwill impairment test.

The qualitative assessment requires us to make judgments and assumptions regarding macroeconomic and industry conditions, our financial performance, and other factors. We do not believe there is a reasonable likelihood that there will be a change in the judgments and assumptions used in our qualitative assessment which would result in a material effect on our operating results.

***Sales Tax***

The Company collects sales tax on all of the Company's sales to nonexempt customers and remits the entire amount to the states that imposed the sales tax. The Company's accounting policy is to exclude the tax collected and remitted to the states from revenues and cost of sales.

***Leases***

The Company adopted ASU 2016-02 Leases (Topic 842) ("Topic 842") issued by the FASB. The adoption of Topic 842 resulted in the presentation of operating lease right-of-use assets and operating lease liabilities on the combined balance sheets.

The Company has assessed the following: (i) whether any expired or existing contracts are or contains a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases (i.e. whether those costs qualify for capitalization under ASU 2016-02). The Company also elected the short-term lease exemption for certain classes of underlying assets including office space, warehouses and equipment, with a lease term of 12 months or less.

The Company determines whether an arrangement is or contains a lease at inception. A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liability, current, and operating lease liability, non-current in the Company's combined balance sheets. Please refer to Note 12 for the disclosures regarding the Company's method of adoption of ASC 842 and the impacts of adoption on its financial position, results of operations and cash flows.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The operating lease ROU assets and lease liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease ROU assets also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease. Renewal options are considered within the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term.

For operating leases with a term of one year or less, the Company has elected not to recognize a lease liability or ROU asset on its combined balance sheets. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term. Short-term lease costs are immaterial to its combined statements of operations and cash flows. The Company has operating lease agreements with insignificant non-lease components and has elected the practical expedient to combine and account for lease and non-lease components as a single lease component.

The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. For the three months ended March 31, 2025 and 2024, the Company did not have any impairment loss against its operating lease ROU assets.

***Warranties***

The Company provide limited product warranties, generally covering periods of ten years for the hull and the motors are under warranty by their manufacturer.

In addition, the Company provides a three-year limited fiberglass small parts warranty on some small fiberglass parts and components, such as consoles. Gelcoat is covered up to one year. Additionally, fiberglass lids, plastic lids, electrical panels, bilge pumps, aerator pumps or other electrical devices (excluding stereos, depth finders, radar, chart plotters except for installation if installed by OTHYS.), steering systems, electrical panels, and pumps are covered under a one-year basic limited systems warranty. Some materials, components or parts of the boat that are not covered by our limited product warranties are separately warranted by their manufacturers or suppliers. These other warranties include warranties covering engines purchased from suppliers and other components.

Standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumer. During the warranty period, we reimburse dealers for all or a portion of the cost of repair or replacement performed by the dealers on the products (mainly composed of parts or accessories provided by us and labor costs incurred by dealers). Although we employ quality control procedures, sometimes a product is distributed that needs repair or replacement. The repair and replacement cost we could incur in connection with a recall could adversely affect our business. In addition, product recalls could harm our reputation and cause us to lose customers, particularly if recalls cause consumers to question the safety or reliability of our products. There were no material product warranty repairs during the three months ended March 31, 2025 and 2024.

***Fair Value of Financial Instruments***

The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivables and other current assets, amounts due from/(to) related parties, accrued liabilities, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest.

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

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| | |
|:---|:---|
| Level 1 — | Quoted prices in active markets for identical assets and liabilities. |
| Level 2 — | Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
| Level 3 — | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |

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The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash, accounts receivable, inventory, prepaid expenses, other current assets, account payables, accrued liabilities, current maturities of operating lease liabilities, current portion of income taxes payable, customer deposits, due to related parties, and floor plan notes payables approximate the fair value of the respective assets and liabilities as of March 31, 2025 and December 31, 2024 due to their short-term nature.

***Revenue Recognition***

The majority of our revenue is from contracts with customers for the sale of boats, yachts, and trailers. We recognize revenue from boat, yacht, and trailer sales upon transfer of control of the boat, yacht, or trailer to the customer, which is generally upon acceptance of the boat, yacht, and trailer by the customer and the satisfaction of our performance obligations. The transaction price is determined with the customer at the time of sale.

Boat, yacht, and trailer sales transactions often include both cash and non-cash consideration. Cash consideration is paid directly by the Company's customers or by third-party financial institutions financing the Company's customer transactions. Non-cash consideration is in the form of trade-in used boats. The Company assigns a value to trade-in assets by estimating a future selling price, which the Company estimates based on relevant internal and third-party data, less a gross profit amount to be realized at the time the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale. Both cash and non-cash consideration may be received prior to or after the Company's performance obligation is satisfied. Any consideration received prior to the satisfaction of the Company's performance obligation is recognized as deferred revenue. Revenue recognized associated with trade-ins solely relates to end-user boat purchasers and not to boat manufactures or other wholesalers. As of March 31, 2025 the Company held trade-in boats recorded as inventory with a total value of $3,703,000. For the three months ended March 31, 2025, the Company recognized $1,180,250 in revenue from the sale of trade-in boats. As of March 31, 2024 the Company held trade-in boats recorded as inventory with a total value of $2,436,500. For the three months then March 31, 2024, the Company recognized $2,767,900 in revenue from the sale of trade-in boats.

Revenue is recognized from the sale of products and commissions earned on new and pre-owned boats (including used, brokerage, consignment and wholesale) when ownership is transferred to the customer, which is generally upon acceptance or delivery to the customer. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits at such time.

Principal versus Agent Considerations:

We evaluate whether we are acting as a principal or an agent in each type of revenue transaction by assessing whether we control the specified goods or services before they are transferred to the customer, in accordance with ASC 606. We are the principal for sales of new, pre-owned, consignment, and wholesale boats, because we control the boat or yacht before transfer to the customer, bear the inventory risk, and have discretion in establishing prices. Accordingly, revenue from these transactions is recognized at the gross sales price.

For brokerage transactions, we act solely as an agent in arranging the sale of a boat between a seller and a buyer. In these transactions, we do not control the boat prior to transfer and do not bear the inventory risk. Therefore, we recognize revenue from brokerage transactions on a net basis, representing only the commission or fee earned. The transfer of control of the boat in brokerage transactions occurs directly between the seller and the buyer, and we do not obtain control at any point in the transaction.

We recognize customer deposits as revenue at the time of acceptance and the transfer of control to the customers. Total customer deposits of $2,350,219 recorded as of December 31, 2024 were recognized in revenue during the three months ended March 31, 2025.Total customer deposits of $2,676,435 recorded as of December 31, 2023 were recognized in revenue during the fiscal year ended December 31, 2024.

We recognize deferred revenue from service operations, maintenance and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met.

Revenue from arranging financing, insurance and extended warranty contracts to customers through various third-party financial institutions and insurance companies is recognized when the related boats are sold. We are acting as an agent in the transaction; therefore, the commissions are recorded on a net basis. Subject to our agreements and in the event of early cancellation, prepayment or default of such loans or insurance contracts by the customer, we may be assessed a chargeback for a portion of the commission paid by the third-party financial institutions and insurance companies. We reserve for these chargebacks based on our historical experience with repayments or defaults. Chargebacks were not material to the combined financial statements for the three months ended March 31, 2025.

We also finance our customers' boat and yacht purchases. Interest income is recognized in profit or loss as it is incurred, based on the time for alienation of right to use capital and effective interest rates. Interest income includes the amortization of any discount or premium or differences between the initial carrying amount of an interest-bearing asset and its amount at maturity calculated using the effective interest rate. The interest-bearing assets related to these financing arrangements are recorded within 'private label receivables' in Note 4 of the Notes to Combined Financial Statements. The income should be recognized when the Company's performance obligation in the contract is fulfilled, which refers the revenue is recognized when the customer obtains the control right of relevant goods or services. To obtain the right of control over related goods or services means to be able to dominate the use of such goods or the provision of such services and obtain almost all economic benefits therefrom.

Net revenue by category:

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| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2025** | **2024** |
| New Boats Sales | 5518110 | 6481055 |
| Pre-owned Boat Sales | 21058418 | 13562331 |
| Finance Income – Azure | 606225 | 700089 |
| Service, Parts & Other Sales | 56029 | 88374 |
| Total Combined Revenue | 27238782 | 20831849 |

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***Selling, General and Administrative Expenses***

Selling, general, and administrative ("SG&A") expenses consist primarily of rent, insurance, utilities, and other customary operating expenses. All the costs are charged to operations when incurred. The Company recorded selling, general and administrative expenses of $423,860 and $461,253 for the three months ended March 31, 2025 and 2024, respectively.

***Advertising and Marketing Costs***

Advertising and marketing costs include costs for advertising, marketing programs, brand promotions, customer mailings and promotional events, and boat shows. The Company recorded advertising and marketing expenses of $329,046 and $127,041 for the three months ended March 31, 2025 and 2024, respectively.

***Income Taxes***

OTHYS, Boat Center and Azure had elected to be taxed as a Partnership under the Internal Revenue Code and similar codes in states in which the Company was subject to taxation. While this election was in effect, the income (whether distributed or not) was taxed for federal income tax purposes to OTHYS, Boat Center and Azure partners. Accordingly, no provision for federal income tax was required. As of the date of the completion of the Reorganization, OTH will effectively become the partner of OTHYS, Boat Center and Azure, which changes the level of taxation from the partners to OTH.

The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the combined financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The provisions of ASC 740-10-25, "Accounting for Uncertainty in Income Taxes," prescribe a more-likely-than-not threshold for combined financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures.

Penalties and interest related to underpayment of income tax are classified as income tax expense in the period incurred.

The Company believes there were no uncertain tax positions as of March 31, 2025 and December 31, 2024, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

***Earnings Per Share***

The Company computes earnings/(net loss) per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. For the three months ended March 31, 2025 and 2024 , there were no dilutive shares.

***Segment Reporting***

The Company operates as two segments: dealerships and financing services. The Company operates separate lines of business. Accordingly, the Company has separately reportable segments. The Dealership segment engages in the sale of new and pre-owned boats, arranges financing and insurance products, provides warranty sales, and offers slip and storage accommodations in certain locations. The financing service segment engages in providing financing products to individuals for marine, aviation and recreational vehicle purchases. Each reporting segment has discrete financial information and is regularly reviewed by the Company's chief operating decision maker ("CODM") Jason Ruegg, our CEO to assess performance and allocate resources. All of the Company's assets are located in the U.S.

***Related Parties***

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence, such as a family member or relative, shareholder, or a related corporation.

***Commitments and Contingencies***

In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that liability has been incurred, and the amount of the assessment can be reasonably estimated.

If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company's combined financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

***Subsequent event***

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the combined financial statements are available to be issued. Material subsequent events that required recognition or additional disclosure in the combined financial statements are presented.

***Recent Accounting Pronouncements***

Recently issued accounting pronouncements not yet adopted

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to combined financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the combined financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in our combined financial statements once adopted. We are currently evaluating the provisions of this ASU.

In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements related to accounting for the settlement of a debt instrument as an induced conversion. The amendments in this update are effective for annual reporting periods beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this guidance on our combined financial statements.

Recently adopted accounting pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this ASU retrospectively on December 31, 2024. Refer to Note 17, Segment Reporting and Information about Geographic Areas for the inclusion of the new required disclosures.

**NOTE 3. INVENTORY**

Inventories consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
| New boats | 5987300 | 3430612 |
| Used boats | 20684118 | 19162810 |
| Total | 26671418 | 22593422 |

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**NOTE 4. PRIVATE LABEL RECEIVABLES**

Receivables in this portfolio include products offered to individuals and businesses that finance the acquisition of boats and yachts from the Company for personal or commercial use. Retail financing includes retail installment contracts for new and used boats and yachts with retail customers.

Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

Finance receivables are accounted for as held for investment ("HFI") if the Company has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. The determination of intent and ability to hold for the foreseeable future is highly judgmental and requires the Company to make good faith estimates based on all information available at the time of origination or purchase. If the Company does not have the intent and ability to hold the receivables, then the receivables are classified as held for sale ("HFS").

Finance receivables classified as HFI are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. Cash flows from finance receivables, excluding wholesale and other receivables, that were originally classified as HFI are recorded as an investing activity since GAAP requires the statement of cash flows presentation to be based on the original classification of the receivables. Cash flows from wholesale and other receivables are recorded as an operating activity.

The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly. As of March 31, 2025 and December 31, 2024 , no allowance for credit losses was recognized. The Company had no non-performing loans as of March 31, 2025 and December 31, 2024 and all loans were current.

The private label consisted of the following as of March 31, 2025 and December 31, 2024 :

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| | | |
|:---|:---|:---|
| **Borrower** | **March 31, 2025** | **December 31, 2024** |
| Greenberg | 189323 | 190492 |
| Subtotal | 189323 | 190492 |
| Allowance for credit losses | - | - |
| Total Private label receivables, net | 189323 | 190492 |

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**NOTE 5. PROPERTY AND EQUIPMENT**

Property and equipment, net consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
| Leasehold improvement | 661556 | 661556 |
| Buildings | 63600 | 63600 |
| Furniture and Fixtures | 84654 | 62233 |
| Equipment | 147507 | 146282 |
| Vehicles | 149983 | 149983 |
| Less: accumulated depreciation | (671131) | (621945) |
| Property, plant and equipment, net | 436169 | 461709 |

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During the three months ended March 31, 2025 and 2024, the Company incurred depreciation expense of $36,373 and $65,343, respectively.

**NOTE 6. GOODWILL**

Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business acquisition that are not individually identified and separately recognized.

On July 22, 2022, the owners of Boat Center, Inc. and the Company entered into a stock purchase agreement pursuant to which the Company paid $570,000 to purchase 100% of Boat Center, Inc issued and outstanding stocks. The purchase price over the fair value of assets acquired and liabilities assumed was recorded as goodwill. Recording these intangible assets would not be material. The entire excess purchase price has been recorded to goodwill.

**NOTE 7. DEFERRED COMPENSATION PLAN**

During 2021, the Company established a nonqualified deferred compensation plan under Section 409(a) of the Internal Revenue Code for eligible senior staff of the Company, to which the Company makes contributions. Benefits are earned over a 15-year cliff vesting period, which the Company ratably recognizes as expense over the vesting period. During the year ended December 31, 2021, the Company contributed $100,000 to the Plan, which is recorded in other assets in the accompanying combined balance sheets for the years ended December 31, 2024 and 2023, net of accumulated vested earnings of $13,333 and $13,333. Assets designated for this plan consist of mutual funds and exchange traded funds. The plan was cancelled in March 2024, and as of December 31, 2023, the plan was inactive.

During 2021, the Company purchased company owned life insurance contracts on certain employees that are key members of the management team and are important to the success of the Company. These policies had a death benefit of $4,590,214 with the Company as the sole beneficiary and a cash value of life insurance of $12,390 as of December 31, 2023. The cash value of the company owned life insurance policy is shown in other asses in the accompanying combined balance sheets, and the gain (loss) on cash value is shown in other income in the accompanying combined income statements. The plan was cancelled in March 2024, and as of December 31, 2024, the plan was inactive.

**NOTE 8. ACCOUNTS PAYABLE**

As of March 31, 2025 and December 31, 2024 the Company recorded accounts payable of $583,202 and $962,725, respectively.

Accounts payable consisted of the following as of March 31, 2025 and December 31, 2024 :

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| Accounts Payable |  | 27155 |  | 467066 |
| Credit Card Payable | | 556,047 | | 495,659 |
|  | | 583,202 | | 962,725 |

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**NOTE 9. NOTES PAYABLE – FLOOR PLAN**

The Company has a floor plan agreement with Red Oak Inventory Finance ("the Lender"), which has a stated total limit of $25,000,000 for new and used marine inventory. From time to time, total borrowings exceed stated limits due to the timing of floor plan draws for inventory shipments. These agreements are collateralized by new and used boat inventory. The agreement bears interest at a rate of SOFR plus basis points depending on whether a boat is new or used and the term period for held inventory. The maximum interest rates for new and used marine inventory held longer than 541 days or 541 days, respectively, is SOFR plus 8.85% or LIBOR plus 9.10%. The floor plan amounts outstanding at March 31, 2025 and December 31, 2024, respectively, were $24,557,551 and $20,444,604.

The Company has a floor plan agreement with LAVICTOIRE Finance (the Lender), which has a stated total limit of $3,250,000. The advances under this agreement are subject to the lender's discretion and are limited to 70% of the lower wholesale price of each item based on approved valuation sources. The agreement is collateralized by used boat inventory, with the lender retaining a security interest until repayment. The agreement bears interest at a rate of 1 Month CME Term SOFR plus 4.75%, with a minimum floor rate of 4.75% per annum. Principal repayment is required on the earlier of 360 days from the advance date or the sale of the financed inventory. The floor plan amounts outstanding at March 31, 2025 and December 31, 2024, respectively, were $102,581 and $150,913.

The total floor plan notes payable outstanding as of March 31, 2025 and December 31, 2024 were $24,660,132 and $20,595,517, respectively.

**NOTE 10. LINE OF CREDIT**

During 2018, the Company entered into a line of credit agreement with BB&T. The stated maximum line of credit amount under the line of credit agreement is $300,000. Outstanding advances under the line of credit note amounted to $292,440 as of December 31, 2023. The line of credit notes bears interest at a rate of 6.50% annually. The line is secured by certain assets of the Company. The line of credit matured on August 21, 2024. As of March 31, 2025, there is no outstanding advances under the line of credit.

During 2021, the Company entered into a line of credit agreement with First Carolina Bank. The stated maximum line of credit amount under the line of credit agreement is $1,300,000 and the maturity date is October 15, 2023. On October 11, 2023, the Company entered into a modification agreement with First Carolina Bank to extend the maturity to October 15, 2024 and credit limit to $3,000,000. The line of credit bearded interest rate of 8.50% annually. The outstanding balance became payable on demand by First Carolina Bank. As of March 31, 2025, the outstanding balance is $2,833,400, remained unchanged compared to December 31, 2024.

**NOTE 11. LONG-TERM LOAN PAYABLE**

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
| Payable to Northpoint Commercial Finance LLC. bearing interest on the outstanding principal amount of the Working Capital Loan at a rate equal to the Benchmark Rate plus six percent (5.50%) per annum. The total advance is $400,000 which was deposited to the Company in December 2022. The Company will pay principal on the Working Capital Loan in 36 monthly payments of $6,500 each on the 15th of each such month. On the 15th day of the 37th calendar month, the outstanding principal amount shall be due and payable-in-full. | 224500 | 244000 |
| Payable to Wells Fargo bearing interest at 3.99%. Requires monthly principal and interest payment. The original loan amount is $26,666 with terms of 84 months starting from November 21, 2021. | 12056 | 12997 |
| Payable to GMC Financial, secured by a Company vehicle. Monthly payments of principal and interest totaling $425 are due on the 19th of each month. Interest accrues at a rate of 3.09% annually. Loan matures in November 2026. | 5280 | 6685 |
| Payable to Land Rover Financial Group, secured by a Company vehicle. Monthly interest payments are due at the beginning of each month. Interest accrues at a rate of 8.59% annually. Loan matures in July 2029. | 96256 | 103081 |
| Total Long-term debt | 338092 | 366763 |

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Maturity of long-term debt is as follows:

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| | |
|:---|:---|
| As of March 31: | Amount |
| 2025 | $116691 |
| 2026 | 114324 |
| 2027 and thereafter | 107077 |
|  | $338092 |

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**NOTE 12. LEASE**

The balances for the operating leases where the Company is the lessee are presented within the balance sheets as follows:

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| | | |
|:---|:---|:---|
|  | As of<br>March 31, 2025 | As of<br>December 31, 2024 |
| **<u>Operating leases</u>** |  |  |
| Right of use-assets | $1403749 | $1505986 |
| Lease liability-current | 367227 | 382731 |
| Lease liability-non-current | 1053250 | 1136624 |
| Total operating lease liabilities | $1420477 | $1519355 |
| Weighted average remaining lease term (in years) | 4.05 | 4.25 |
| Weighted average discount rate (%) | 6.50% | 6.50% |

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The components of lease expenses for the three months ended March 31, 2025 and 2024 were as follows:

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| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2025** | **2024** |
| Operating lease cost | $107931 | $37149 |
| Cost of other leases with period less than one year and variable lease costs | 49227 | 52726 |
|  | $157158 | $89875 |

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The components of lease expenses for the three months ended March 31, 2025 and 2024 were operating lease cost of $157,158 and $89,875, respectively.

Supplemental cash flow information related to leases for the three months ended March 31, 2025 and 2024 were as follows:

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| | | |
|:---|:---|:---|
| | **For the three months ended March 31,** | **For the three months ended March 31,** |
| <br>**Cash paid for amounts included in the measurement of lease liabilities:** | **2025** | **2024** |
| Operating cash flows from operating leases | $157158 | $89875 |
| **Supplemental noncash information:** |  |  |
| Right-of-use assets obtained in exchange for lease obligation: | $- | $- |

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As of March 31, 2025, the maturities of operating lease liabilities (excluding short-term lease) are as follows:

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| | |
|:---|:---|
| **For the three months ending March 31, 2025** | **Operating Lease** |
| 2025 | $384492 |
| 2026 | 259285 |
| 2027 and thereafter | 817213 |
| Total lease payments | 1460990 |
| Less: Imputed interest | (40513) |
| Present value of lease liabilities | $1420477 |
| Less: current portion | (367227) |
| Lease obligations, noncurrent | 1053250 |

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As of December 31, 2024, the maturities of operating lease liabilities (excluding short-term lease) are as follows:

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| | |
|:---|:---|
| **For the year ending December 31, 2024** | **Operating Lease** |
| 2025 | $401998 |
| 2026 | 346352 |
| 2027 and thereafter | 817213 |
| Total lease payments | 1565563 |
| Less: Imputed interest | (46208) |
| Present value of lease liabilities | $1519355 |
| Less: current portion | (382731) |
| Lease obligations, noncurrent | 1136624 |

---

**NOTE 13. CUSTOMER DEPOSITS**

We recognize customer deposits as revenue at the time of acceptance and the transfer of control to the customers. Total customer deposits of $2,350,219 recorded as of December 31, 2024 were recognized in revenue during the three months ended March 31, 2025. Total customer deposits of $2,676,435 recorded as of December 31, 2023 were recognized in revenue during the fiscal year ended December 31, 2024.

The movement in customer deposits is as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
| Balance at beginning period | $2350219 | 2676435 |
| Decrease in contract liabilities as a result of recognizing revenue during the year was included in the contract liabilities at the beginning of the year | (4937834) | (17771105) |
| Increase in contract liabilities as a result of billings in advance of performance obligation under contracts | 3984861 | 17444889 |
| Refunded to the customers |  |  |
| Balance at the end of the period | $1397246 | 2350219 |

---

**NOTE 14. RELATED PARTIES TRANSACTIONS**

The principal related parties with which the Company had transactions for the three months ended March 31, 2025 and the years ended December 31, 2024 presented are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;***a)***  ***Related Parties –*** 

---

| | |
|:---|:---|
| **Name** | **Relationship with the Company** |
| OTH Realty II, LLC | Affiliates of the Company |
| Tom Ruegg | Family of the Shareholder |
| Jason Ruegg | Shareholder |
| Dan Ruegg and Diane Ruegg | Family of the Shareholder |
| Ruegg Capital Group | Affiliates of the Company |
| OTH Service NC, LLC | Affiliates of the Company |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***b)***  ***Amounts due to related parties*** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024 (As restated)** |
| Dan Ruegg and Diane Ruegg (1) | 1051399 | 1054179 |
| Tom Ruegg (2) | 321426 | 358992 |
| Ruegg Capital Group (3) |  | 9369 |
| **Total** | $**1372825** | $**1422540** |

---

(1) This
 loan was jointly provided by Mr. Dan Ruegg and his spouse, Mrs. Diane Ruegg to support the Company's daily operational needs.
 Pursuant to the agreement, Dan and Diane Ruegg agreed to loan the Company up to $1 million as an investment in Off the Hook Yacht
 Sales NC, LLC. The loan is unsecured, bears interest at an annual rate of 7.00%, and has no maturity date.

(2) This
 operating loan was obtained from Mr. Tom Ruegg on February 3, 2023, with a principal amount of $500,000 and a fixed annual interest
 rate of 7.00%. Interest is accrued and will be paid together with the principal upon repayment. The loan will mature on July 01,
 2027.

(3) The
 Company borrowed funds from related parties for working capital purpose. The interest rate is 0%. The Company used the stated rate
 of 7.50% as imputed interest rate. These working capital advances are payable on demand. As of March 31, 2025 and December 31, 2024,
 these working capital advances amounted to nil and $9,369, are reflected as related party loans on the accompanying balance sheets.
 During the three months ended March 31, 2025 and 2024, in connection with these related party loans, the Company imputed interest
 of nil and $10,688, respectively, and recorded interest expense and an increase in additional paid-in capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***c)***  ***Amounts due from related parties*** 

Amounts due from related parties consisted of the following for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
| OTH Service NC, LLC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 11313 |
| **Total** | $**-** | $**11313** |

---

&nbsp;&nbsp;&nbsp;&nbsp;***d)***  ***Related party transactions*** 

***Member Distribution***

The Company's member distribution for the three months ended March 31, 2025 and 2024, was $591,906 and $559,834, respectively.

**NOTE 15. INCOME TAXES** 

OTHYS (a Limited liability company ("LLC") since inception), Boat Center (an LLC since inception) and Azure (an LLC since inception) had elected to be taxed as a partnership under the provisions of the Internal Revenue Code (the "Code"). Under this Code, OTHYS, Boat Center and Azure does not pay federal corporate income taxes on its taxable income. Instead, the member is liable for individual federal income taxes on the Operating Entity's taxable income. Therefore, no provision or liability for federal income taxes has been included in the accompanying financial statements.

OTH incorporated on January 3, 2025 and taxed as C corporation under the Code. There was no income tax liability as of March 31, 2025 and December 31, 2024. The statutory rates is OTH is subject to U.S. federal income tax as well as state income tax in certain jurisdictions.

The income tax provision for the three months ended March 31, 2025 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2024** |
| Computed "Expected" Income Taxes | 13222 | 1438 |
| Non C-Corporation (Income) | (13222) | (1438) |
| Entity Level State Income Tax on LLC Income | - | - |
| **Computed "Expected" Income Taxes** | **-** | **-** |

---

Uncertain tax positions

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2025 and December 31, 2024 , the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income taxes for the three months ended March 31, 2025 and 2024. The Company also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from March 31, 2025.

**NOTE 16. SHAREHOLDERS' EQUITY**

***Common stock***

On January 3, 2025, Off The Hook YS Inc. was incorporated in Neveda and became the holding company pursuant to the Reorganization described in Note 1. The total authorized shares of common stock were 100,000,000 shares, each common stock is entitled to one vote.

Each common stock has $0.001 par value. As of March 31, 2025 and December 31, 2024, the Company had issued and outstanding shares of common stock of 20,000,000 and 20,000,000, respectively.

***Preferred Stock***

The Company authorized 100,000 shares of blank check preferred stock in one or more series or classes and to designate the rights, preferences and privileges of each series or class, which may be greater than the rights of our Common Stock. There are no shares of preferred stock designated or outstanding as of March 31, 2025, and December 31, 2024.

***Member Distribution***

The Company's member distribution for the three months ended March 31, 2025 and 2024, was $591,906 and $559,834, respectively.

**NOTE 17. SEGMENT INFORMATION** 

The company operates primarily in two distinct business segments: Boat Sales and Azure Funding.

Boat Sales: Specializing in the buying, selling, and wholesaling of yachts and boats. Having a boat dealership created to run Yellow Fin sales in Miami.

Azure Funding: A recreational loan broker and lender providing financing solutions for individuals, dealerships, and brokerages.

The Company's segment profit or loss is measured using gross profit, which is the primary performance metric utilized by management to evaluate the financial results of each reportable segment and to make decisions regarding resource allocation. Although gross profit is reviewed by management for operational analysis, operating income (loss) is the primary measure used by the CODM for segment performance assessment and resource allocation. For segment reporting purposes, gross profit is calculated as the difference between segment revenue and the direct costs associated with specific projects or contracts. These direct costs include materials, labor, subcontractors, and other project-specific expenses directly attributable to the construction activities of each segment.

The financial performance of each segment is regularly reviewed with operational leaders in charge of these segments, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and others. The CODM of the Company is Jason Ruegg, CEO. The Company's segment disclosures are presented in accordance with the guidance set forth in ASC 280, *Segment reporting*. Specifically, the disclosures comply with the requirements outlined in ASC 280-10-50-22 through 50-26, which mandate that an entity disclose certain information about its operating segments to enable users of the financial statements to understand the financial performance of different parts of the business.

In accordance with ASC 280-10-50-22, the Company discloses financial information for each reportable segment, including revenue, operating profit or loss, and other significant items that are used by the chief operating decision maker (CODM) in assessing the performance and making decisions about the allocation of resources. The Company identifies its reportable segments based on the internal management structure, and all relevant information is disclosed in the segment footnote as required.

In accordance with ASC 280-10-50-29, the disclosures also adhere to the requirements of which mandate that the financial information provided for each segment should include items such as capital expenditures, depreciation, and amortization, when appropriate. The disclosures reflect the performance and financial position of each segment, and a reconciliation of segment totals to the overall combined financial results, including total segment profit or loss and other significant disclosures.

The Company's segment disclosures are presented in accordance with the requirements set forth in ASC 280-10-50-30(b) and (c), which specify the need to disclose the total of reportable segments' profit or loss, as well as the basis of measurement used to determine the segment results.

In accordance with ASC 280-10-50-30(b), the Company provides the total of profit or loss for all reportable segments, which reflects the combined operating results for each reportable segment included in the financial statements. The total segment profit or loss represents the aggregation of segment results before the allocation of corporate expenses and certain other items not attributable to specific segments.

As required by ASC 280-10-50-30(c), the Company has also disclosed the basis of measurement for segment profit or loss. The measure used to assess segment performance and allocate resources is operating income (or loss), which includes revenues, cost of sales, and directly attributable operating expenses for each segment. The operating income (or loss) for each reportable segment is reviewed by the Company's chief operating decision maker (CODM) and serves as the primary performance metric used in resource allocation and operational decision-making.

Segment information is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| Revenues | 20131760 | 700089 | 20831849 |
| Cost of revenues | 18455673 | 282853 | 18738526 |
| Gross profit | 1676087 | 417236 | 2093323 |
| **Operating expenses** |  |  |  |
| Depreciation and amortization | 63343 | 2000 | 65343 |
| Selling, general and administrative | 426578 | 59515 | 486093 |
| Advertising and marketing | 92745 | 9456 | 102201 |
| Professional services | 28845 | 1961 | 30806 |
| Salaries and wages | 393871 | 197995 | 591866 |
| Rent expenses | 64149 | 25726 | 89875 |
| Total operating expenses | 1069531 | 296653 | 1366184 |
| **Operating income** | 606556 | 120583 | 727139 |
| **Other income (expenses)** |  |  |  |
| Interest expense, net | (357824) | (46153) | (403977) |
| Other income | 8284 | 7383 | 15667 |
| Other expense | (106357) |  | (106357) |
| **Total other income (expense)** | (455897) | (38770) | (494667) |
| **Net Income** | **150659** | **81813** | **232472** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| Revenues | 26632556 | 606226 | 27238782 |
| Cost of revenues | 24307136 | 255017 | 24562153 |
| Gross profit | 2325420 | 351209 | 2676629 |
| **Operating expenses** |  |  |  |
| Depreciation and amortization | 36316 | 57 | 36373 |
| Selling, general and administrative | 385324 | 38536 | 423860 |
| Advertising and marketing | 298641 | 30405 | 329046 |
| Professional services | 54143 | 144 | 54287 |
| Salaries and wages | 605459 | 249823 | 855282 |
| Rent expenses | 136091 | 21067 | 157158 |
| Total operating expenses | 1515974 | 340032 | 1856006 |
| **Operating income** | 809446 | 11177 | 820623 |
| **Other income (expenses)** |  |  |  |
| Interest expense, net | (542507) | (2791) | (545298) |
| Other income | 12795 | 1654 | 14449 |
| Other expense |  |  |  |
| **Total other income (expense)** | (529712) | (1137) | (530849) |
| **Net Income** | **279734** | **10040** | **289774** |

---

The total assets for each segments are presented in accordance with segment reporting requirements of ASC 280-10, which requires the disclosure of total assets for each reportable segment.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| **ASSETS** |  |  |  |
| Cash and cash equivalents | $672780 | $261492 | 934272 |
| Accounts receivable, net | 131081 | 32567 | 163648 |
| Inventory | 26671418 |  | 26671418 |
| Prepaid expense | 2849838 | 70280 | 2920118 |
| Private label receivable |  | 189323 | 189323 |
| Other current assets | 352089 | 118424 | 470513 |
| Property, plant and equipment, net | 434175 | 1994 | 436169 |
| Other receivable | 44735 |  | 44735 |
| Due from related parties |  |  |  |
| Right-of-use assets | 1403749 |  | 1403749 |
| Goodwill | 570000 |  | 570000 |
| **TOTAL ASSETS** | $**33129865** | $**674080** | $**33803945** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| **ASSETS** |  |  |  |
| Cash and cash equivalents | $2714469 | $212657 | 2927126 |
| Accounts receivable, net | 59644 | 44673 | 104317 |
| Inventory | 22593422 |  | 22593422 |
| Prepaid expense | 2337100 | 51682 | 2388782 |
| Prepaid expense - related party |  |  |  |
| Private label receivable |  | 190492 | 190492 |
| Other current assets | 542856 | 297545 | 840401 |
| Property, plant and equipment, net | 459658 | 2051 | 461709 |
| Other receivable | 42192 |  | 42192 |
| Due from related party | 11313 |  | 11313 |
| Right-of-use assets | 1450367 | 55619 | 1505986 |
| Goodwill | 570000 |  | 570000 |
| **TOTAL ASSETS** | $**30781021** | $**854719** | **31635740** |

---

**NOTE 18. COMMITMENTS AND CONTINGENCIES**

***Commitments***

As of March 31, 2025 and December 31, 2024, the Company did not have any significant capital and other commitments.

***Contingencies***

Legal Proceedings

From time to time, we may become involved in litigation or other legal proceedings. We are not currently a party to any material litigation or legal proceedings. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

The Company purchases substantially all of its new boats from Nortec and Yellowfin at the prevailing prices charged by the boat manufacturer to all franchise dealers. The Company's sales volume could be adversely impacted by Nortec's to supply it with an adequate supply of popular models due to unforeseen circumstances or as a result of an unfavorable allocation of boats by the manufacturer.

The Company's facilities are subject to federal, state and local provisions regulating discharge of materials into the environment. Compliance with these provisions has not had, nor does the Company expect such compliance to have, any material effect upon the capital expenditures, net income, financial condition or competitive position of the Company. Management believes that its current practices and procedures for the control and disposition of such materials comply with the applicable federal and state requirements. The Company is subject to legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome arising out of any such matters will have a material adverse effect on its financial position, cash flows or results of operations on an individual basis or in the aggregate. As of March 31, 2025 and December 31, 2024, the Company is not a party to any material legal or administrative proceedings.

**NOTE 19. SUBSEQUENT EVENTS**

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the combined financial statements are available to be issued. Other than the material subsequent events disclosed above in the notes to financial statements, no other material subsequent events that required recognition or additional disclosure in the combined financial statements are presented.

On April 29, 2025, the Company's board of directors and stockholders approved the Off The Hook YS Inc. 2025 Stock Incentive Plan, or the 2025 Plan. The 2025 Plan will become effective immediately prior to the closing of the Company's initial public offering. Any of employees, directors, consultants, and other service providers, or those of the Company's affiliates, are eligible to participate in the 2025 Plan and may be selected by the compensation committee to receive an award. The following types of awards may be granted to participants under the 2025 Plan: (i) incentive stock options, or ISOs; (ii) nonqualified stock options, or NQOs and together with ISOs, options, (iii) stock appreciation rights, (iv) restricted stock, or (v) restricted stock units. A total of 4,000,000 shares of Common Stock have been reserved under 2025 Plan.

On July 3rd, 2025, the shareholders of Off The Hook YS Inc. (the "OTH Owners") entered into an Amended and Restated Agreement for the Purchase and Sale of Capital Stock (the "Amended SPA") with Off The Hook Acquisition Corp., a Florida corporation ("OTH FL"). Pursuant to the Amended SPA, the OTH Owners agreed to sell and transfer to OTH FL 25% of the issued and outstanding common stock of Off The Hook YS Inc. (the "Transferred Securities") for total consideration of $3.0 million, payable as follows:

● $600,000 in cash as a non-refundable deposit upon the execution of the Amended SPA; and

● $2.4 million payable at the closing, which is conditioned upon, among other things, the effectiveness of the Company's registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission.

After the consummation of the consolidation of the OTH Companies and the transaction contemplated under the Amended SPA, but before the closing of this offering, the OTH Owners will collectively hold 75% of the issued and outstanding shares of the Company, and OTH FL will hold 25%.

As this transaction does not result in a change of control of the Company, it has no impact on the Company's combined financial statements.

![](audit_001.jpg)

<br> REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of Off the Hook YS Inc. and Affiliates

**Opinion on the Financial Statements**

We have audited the accompanying combined balance sheets of Off the Hook YS Inc. and Affiliates (the Company) as of December 31, 2024 and 2023, and the related combined statements of operations, changes in members' equity, and cash flows for the years ended December 31, 2024 and 2023, and the related notes (collectively referred to as the combined financial statements). In our opinion, the combined financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024 and 2023, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These combined financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's combined financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the combined financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the combined financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the combined financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matter communicated below is a matter arising from the current period audit of the combined financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the combined financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

*Revenue Recognition*

As discussed in Note 2 to the combined financial statements, when another party is involved in providing goods or services to the Company's clients, a determination is made as to who is acting in the capacity as the principal in the sales transaction.

Auditing management's evaluation of agreements with customers involves significant judgment, given the fact that some agreements require management's evaluation of principal versus agent.

To evaluate the appropriateness and accuracy of the assessment by management, we evaluated management's assessment in relationship to the relevant agreements.

**Restatement**

The financial statements as of and for the year ended December 31, 2024 have been restated to remove an entity from the previously issued audited combined financial statements. Please see note 20 for further details.

---

| |
|:---|
| /s/ M&K CPAS, PLLC |
| We have served as the Company's auditor since 2024. |
| The Woodlands, TX |
| July 7, 2025 |

---

**OFF THE HOOK YS INC. AND AFFILIATES**

**Combined Balance Sheets**

**As of December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024<br> (As restated)** | **December 31, 2023** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| Cash and cash equivalents | $2927126 | $1654631 |
| Accounts receivable, net | 104317 | 179121 |
| Inventory | 22593422 | 12556812 |
| Prepaid expense | 2408782 | 2393537 |
| Private label receivable | 4942 | 994026 |
| Other current assets | 840401 | 272126 |
| TOTAL CURRENT ASSETS | 28858990 | 18050253 |
| **NON-CURRENT ASSETS** |  |  |
| Property, plant and equipment, net | 461709 | 669728 |
| Other receivable | 42193 | 132227 |
| Private label receivable | 185550 | 608694 |
| Due from related party | 11313 |  |
| Right-of-use assets | 1505986 | 271339 |
| Goodwill | 570000 | 570000 |
| TOTAL NON-CURRENT ASSETS | 2776751 | 2251988 |
| **TOTAL ASSETS** | $31635741 | $20302241 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES** |  |  |
| Accounts payable | $962726 | $349958 |
| Accrued liabilities | 507284 | 302562 |
| Lease liabilities, current | 382731 | 129197 |
| Line of credit | 2833400 | 2414228 |
| Short-term loan payable |  | 1047812 |
| Current portion of long-term debt | 137468 | 123107 |
| Due to related party | 1422540 | 2144322 |
| Customer deposit | 2350219 | 2676435 |
| Floor plan notes payable | 20595517 | 10794288 |
| Other current liabilities | 110547 | 99422 |
| TOTAL CURRENT LIABILITIES | 29302432 | 20081331 |
| **LONG-TERM LIABILITIES** |  |  |
| Long-term debt, noncurrent | 229295 | 323421 |
| Lease liabilities, noncurrent | 1136624 | 147209 |
| TOTAL LONG-TERM LIABILITIES | 1365919 | 470630 |
| **TOTAL LIABILITIES** | 30668351 | 20551961 |
| **MEMBERS' DEFICIT** |  |  |
| Common stock, with $0.001 par value, 100,000,000 shares of common stock authorized, 20,000,000 shares of common stock issued and outstanding as of December 31, 2024 and 2023, respectively\* | 20000 | 20000 |
| Additional paid-in capital | 2774944 | 1813229 |
| Retained earnings | (1827554) | (2082949) |
| **TOTAL MEMBERS' EQUITY** | 967390 | (249720) |
| **TOTAL LIABILITIES AND MEMBERS' EQUITY** | $31635741 | $20302241 |

---

\*Par value of common stock, additional paid-in capital and share data have been retrospectively restated to give effect to the reorganization that is discussed in Note 1.

*The accompanying notes are an integral part of these combined financial statements*

**OFF THE HOOK YS INC. AND AFFILIATES**

**Combined Statements of Operations**

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024<br> (As restated)** | **2023** |
| Revenues | $98995562 | $91839555 |
| Cost of revenues | 90214652 | 82693017 |
| Gross profit | 8780910 | 9146538 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 255240 | 217061 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 1752325 | 1952483 |
| &nbsp;&nbsp;&nbsp;Advertising and marketing | 489008 | 540062 |
| &nbsp;&nbsp;&nbsp;Professional services | 433207 | 276008 |
| &nbsp;&nbsp;&nbsp;Salaries and wages | 2689843 | 2759076 |
| &nbsp;&nbsp;&nbsp;Rent expenses | 477364 | 363559 |
| Total operating expenses | 6096987 | 6108249 |
| Income from operations | 2683923 | 3038289 |
| Other income (expenses): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (1622461) | (1674949) |
| &nbsp;&nbsp;&nbsp;Other income | 22107 | 4288 |
| &nbsp;&nbsp;&nbsp;Other expense | (91885) | (72125) |
| Total other income (expenses) | (1692239) | (1742786) |
| Net Income | $991684 | $1295503 |
| Basic and diluted net income per membership shares | $0.05 | $0.06 |
| Basic and diluted weighted average membership shares outstanding | $20000000 | $20000000 |

---

\*Par value of common stock, additional paid-in capital and share data have been retrospectively restated to give effect to the reorganization that is discussed in Note 1.

*The accompanying notes are an integral part of these combined financial statements*

**OFF THE HOOK YS INC. AND AFFILIATES**

**Combined Statements of Changes in Members' Equity**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional Paid-in**<br> **Capital** | **Retained**<br>**Earnings** | **Total <br> Members'**<br>**Equity** |
| **Balance, December 31, 2022** | **20000000** | $**20000** | $**-** | $**(3092395)** | $**(3072395)** |
| Imputed interest |  |  | 43229 |  | 43229 |
| Member Contribution - related party loan forgiveness |  |  | 1770000 |  | 1770000 |
| Member Distribution |  |  |  | (286057) | (286057) |
| Net income |  |  |  | 1295503 | 1295503 |
| **Balance, December 31, 2023** | **20000000** | $**20000** | $**1813229** | $**(2082949)** | $**(249720)** |
| Imputed interest |  |  | 40746 |  | 40746 |
| Member Contribution - related party loan forgiveness |  |  | 920969 |  | 920969 |
| Member Distribution |  |  |  | (736289) | (736289) |
| Net income |  |  |  | 991684 | 991684 |
| **Balance, December 31, 2024 (restated)** | **20000000** | $**20000** | $**2774944** | $**(1827554)** | $**967390** |

---

\*Par value of common stock, additional paid-in capital and share data have been retrospectively restated to give effect to the reorganization that is discussed in Note 1.

*The accompanying notes are an integral part of these combined financial statements*

**OFF THE HOOK YS INC. AND AFFILIATES**

**Combined Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024<br> (As restated)** | **2023** |
| Cash flows from operating activities: |  |  |
| Net income | $991684 | $1295503 |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation and amortization | 255240 | 217061 |
| Imputed interest | 40746 | 43229 |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable | 74804 | (47774) |
| Private label receivable | 1412228 | (1050493) |
| Other receivable | 90034 | (78657) |
| Inventory | (10036610) | 1424415 |
| Prepaid expense | 4755 | (2370361) |
| Other current assets | (568275) | 479809 |
| Due to related parties |  | (3600908) |
| Due from related parties | (11313) |  |
| Right-of-use assets | 264168 | 245530 |
| Accounts payable | 740541 | (230191) |
| Accrued liabilities | 204722 | (5367) |
| Customer deposits | (326216) | 688150 |
| Other current liabilities | 11125 | (709700) |
| Lease liabilities | (255866) | (236340) |
| Net cash used in operating activities | (7108233) | (3936094) |
| Cash flows from investing activities: |  |  |
| Purchase of fixed assets | (25012) | (536400) |
| Net cash used in investing activities | (25012) | (536400) |
| Cash flows from financing activities: |  |  |
| Proceeds from line of credit | 1318170 | 1860718 |
| Payment to line of credit | (898998) | (1039540) |
| Member distribution | (736289) | (286057) |
| Member contribution | 920969 | 1770000 |
| Proceed from short-term loan payable | 22188 | 1047812 |
| Payment to short-term loan payable | (1070000) |  |
| Proceed from floorplan notes payables | 51736268 | 47270619 |
| Payment to floor plan notes payable | (41935039) | (51207057) |
| Proceed from long-term debt | 2820 | 12719 |
| Payment to long-term debt | (232568) | (102073) |
| Proceed from related-party debt | 1346771 | 3147096 |
| Payment to related party debt | (2068552) | (2185245) |
| Net cash provided by financing activities | 8405740 | 288992 |
| Net change in cash | 1272495 | (4183502) |
| Cash and cash equivalents, beginning of period | $1654631 | 5838133 |
| Cash and cash equivalents, end of period | $2927126 | $1654631 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |
| Cash paid for interest | 1671100 | 1699798 |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES** |  |  |
| Establishment of ROU assets and liabilities | $1498815 | $151705 |
| Purchase of fixed asset with financing | $149983 | $- |

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*The accompanying notes are an integral part of these combined financial statements*

**OFF THE HOOK YS INC. AND AFFILIATES**

**NOTES TO FINANCIAL STATEMENTS**

**December 31, 2024 and 2023**

**NOTE 1. NATURE OF BUSINESS AND ORGANIZATION**

Off The Hook YS Inc. (the "OTH") is a company established in Nevada. It is a holding company established on January 3, 2025 with no business operation. Off The Hook Yacht Sales NC, LLC (the "OTHYS") and OTH Simon Marine YF, LLC (the "Boat Center") sell yachts and boats to the public. Azure Funding, LLC (the "Azure") is a recreational loan broker and lender, focused on providing financing services to individuals for marine, aviation and recreational vehicle purchases. OTH, OTHYS, Boat Center and Azure collectively referred to as the Company. The Company engages primarily in the retail sale, brokerage, and service of new and pre-owned boats, yachts and trailers, and offers slip and storage accommodation in certain locations. The Company also arranges related boat financing, insurance, and extended service contracts for customers with Azure or third-party lenders and insurance companies. The following list details the ownership interests of the entities; these entities are directly and indirectly controlled by Jason Ruegg.

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| | |
|:---|:---|
| **Entity** | **Ownership Interests** |
| Off The Hook YS Inc. | 100% owned by Jason Ruegg |
| Off the Hook Yacht Sales NC, LLC(OTHYS) | 100% owned by Ruegg Capital Group, Inc. |
| Azure Funding, LLC (Azure) | - Katie Ruegg: 10%<br> - Glenn Overton: 22.5%<br> - Jason Ruegg: 67.5% |
| OTH Simon Marine YF LLC (Boat Center) | - Jason Ruegg: 75% |
|  | - Corey Simon: 25% |

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In preparation for listing ("Listing") on the U.S. Exchange Market, holders of equity interests (the "OTH Owners") in OTHYS, Boat Center and Azure(the "OTH Companies") agreed to undertake a restructuring of their ownership interests in OTH Companies by consolidating such companies under OTH, which upon completion of the consolidation, the OTH Owners collectively own 100% of the issued and outstanding shares of common stock of OTH, and each of OTH Companies will be a wholly owned subsidiary of OTH.

Immediately before and after the Reorganization as described above, OTH and Operating Subsidiaries were effectively controlled by the same controlling shareholders, and given no change on control, the transaction is accounted for as business combination under common control.

For financial reporting purpose, the contribution of Operating Subsidiaries represented a transaction between entities under common control, resulted in a change in reporting entity and required retrospective combination of entities for all periods presented, as if the combination has been in effect since the inception of common control. Accordingly, the combined financial statements of OTH and Operating Subsidiaries reflect the accounting of the combined subsidiaries at historical carrying values, except that equity reflects the equity of OTH.

**NOTE 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation and Consolidation***

The Company's combined financial statements and the notes thereto have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America and pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). The Company's fiscal year end date is December 31.

The combined financial statements include the financial statements of the entities noted in note 1 above.

***Emerging Growth Company Status***

The Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which opted out of utilizing the emerging growth company reduced reporting requirements difficult.

***Use of Estimates and Assumptions***

The preparation of combined financial statements in conformity with U.S. GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Significant estimates required to be made by management, include, but are not limited to, the allowance for doubtful accounts, allowance for deferred tax assets, uncertain tax position, incremental borrowing rates used in calculation of the operating lease right-of-use assets and operating lease liabilities and the estimated cost and the input measure method used in revenue recognition. Actual results could differ from those estimates, and as such, differences could be material to the combined financial statements.

***Cash and Cash Equivalents***

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The Company had no cash equivalents. The Company considered highly liquid investments that were readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use.

Restricted cash represents the deposits held in designated bank accounts for security of the repayment of the notes payable. The Company has no restricted cash as of December 31, 2024, and 2023, respectively.

***Accounts Receivable, net***

Accounts receivables are recorded at invoiced amounts, net of an allowance for credit losses, and do not bear interest. In accordance with Accounting Standards Update No. 2016-13 *"Financial Instruments—Credit Losses" ("ASC 326")*, the Company measures its allowance for credit losses using an expected credit loss model that reflects the Company's current estimate of expected credit losses inherent in the enterprise and the accounts receivable balance. In determining the expected credit losses, the Company considers its historical loss experience, the aging of its accounts receivable balance, current economic and business conditions, and anticipated future economic events that may impact collectability. The Company reviews its allowance for credit losses periodically and as needed, amounts are written-off when determined to be uncollectible. As of December 31, 2024 and 2023, no allowance for credit losses was recognized.

***Inventory, net***

Inventories primarily consist of new and pre-owned boats, including yachts, that are held for sale in the ordinary course of business. These inventories are acquired through two primary channels: (i) direct purchases from manufacturers and vendors, and (ii) trade-ins from customers as part of boat sales transactions. The inventory acquired through trade-ins is initially measured and recognized based on the estimated future selling price of the boat, less a gross profit amount to be realized when the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale.

Inventories are stated at the lower of cost or net realizable value. The cost of the new and pre-owned boat inventory is determined using the specific identification method. In assessing lower of cost or net realizable value, the Company considers the aging of the boats, historical sales of a brand and current market conditions. Parts and accessories are determined using methods which vary by subsidiary and include both the average cost method and first-in, first-out ("FIFO"). As of December 31, 2024 and 2023, the amount of parts and accessories was immaterial.

***Property, plant and equipment, net***

Property, plant and equipment (including construction in progress) are stated at cost less accumulated depreciation and impairment charges. Depreciation is calculated primarily based on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets except the depreciation method for mold and tooling:

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| | |
|:---|:---|
|  | **Useful Life** |
| Building and improvements | 39 years |
| Leasehold improvements | The shorter of useful life and lease term |
| Furniture and fixtures | 5-10 years |
| Equipment | 5-10 years |
| Vehicles | 3-5 years |

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Construction in progress represents manufacturing facilities and equipment under construction and is stated at cost. The capitalization of these costs ceases when construction in progress is transferred to property, plant and equipment and substantially ready for its intended use. No depreciation is recorded for construction in progress.

When assets are retired or otherwise disposed of, the cost, accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the combined statements of operations in the period realized. Maintenance and repairs that do not enhance or extend the asset's useful life are charged to operating expense as incurred.

***Impairment of Long-Lived Assets***

Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will affect the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amounts of those assets are depreciated over their remaining useful life. For the periods presented, we have not recorded any material impairment.

***Goodwill***

We account for acquisitions in accordance with FASB ASC 805, "Business Combinations" ("ASC 805"), and goodwill in accordance with ASC 350, "Intangibles — Goodwill and Other" ("ASC 350"). For business combinations, the excess of the purchase price over the estimated fair value of net assets acquired in a business combination is recorded as goodwill. In accordance with ASC 350, we test goodwill impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairment test is performed during the third fiscal quarter. If the carrying amount of a reporting unit's goodwill exceeds its fair value we recognize an impairment loss in accordance with ASC 350. Based upon our most recent analysis, we determined through our qualitative assessment that it is not "more likely than not" that the fair values of our reporting units are less than their carrying values. As a result, we were not required to perform a quantitative goodwill impairment test.

The qualitative assessment requires us to make judgments and assumptions regarding macroeconomic and industry conditions, our financial performance, and other factors. We do not believe there is a reasonable likelihood that there will be a change in the judgments and assumptions used in our qualitative assessment which would result in a material effect on our operating results.

***Sales Tax***

The Company collects sales tax on all of the Company's sales to nonexempt customers and remits the entire amount to the states that imposed the sales tax. The Company's accounting policy is to exclude the tax collected and remitted to the states from revenues and cost of sales.

***Leases***

The Company adopted ASU 2016-02 Leases (Topic 842) ("Topic 842") issued by the FASB. The adoption of Topic 842 resulted in the presentation of operating lease right-of-use assets and operating lease liabilities on the combined balance sheets.

The Company has assessed the following: (i) whether any expired or existing contracts are or contains a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases (i.e. whether those costs qualify for capitalization under ASU 2016-02). The Company also elected the short-term lease exemption for certain classes of underlying assets including office space, warehouses and equipment, with a lease term of 12 months or less.

The Company determines whether an arrangement is or contains a lease at inception. A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liability, current, and operating lease liability, non-current in the Company's combined balance sheets. Please refer to Note 13 for the disclosures regarding the Company's method of adoption of ASC 842 and the impacts of adoption on its financial position, results of operations and cash flows.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The operating lease ROU assets and lease liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease ROU assets also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease. Renewal options are considered within the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term.

For operating leases with a term of one year or less, the Company has elected not to recognize a lease liability or ROU asset on its combined balance sheets. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term. Short-term lease costs are immaterial to its combined statements of operations and cash flows. The Company has operating lease agreements with insignificant non-lease components and has elected the practical expedient to combine and account for lease and non-lease components as a single lease component.

The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. For the years ended December 31, 2024 and 2023, the Company did not have any impairment loss against its operating lease ROU assets.

***Warranties***

The Company provide limited product warranties, generally covering periods of ten years for the hull and the motors are under warranty by their manufacturer.

In addition, the Company provides a three-year limited fiberglass small parts warranty on some small fiberglass parts and components, such as consoles. Gelcoat is covered up to one year. Additionally, fiberglass lids, plastic lids, electrical panels, bilge pumps, aerator pumps or other electrical devices (excluding stereos, depth finders, radar, chart plotters except for installation if installed by OTHYS.), steering systems, electrical panels, and pumps are covered under a one-year basic limited systems warranty. Some materials, components or parts of the boat that are not covered by our limited product warranties are separately warranted by their manufacturers or suppliers. These other warranties include warranties covering engines purchased from suppliers and other components.

Standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumer. During the warranty period, we reimburse dealers for all or a portion of the cost of repair or replacement performed by the dealers on the products (mainly composed of parts or accessories provided by us and labor costs incurred by dealers). Although we employ quality control procedures, sometimes a product is distributed that needs repair or replacement. The repair and replacement cost we could incur in connection with a recall could adversely affect our business. In addition, product recalls could harm our reputation and cause us to lose customers, particularly if recalls cause consumers to question the safety or reliability of our products. There were no material product warranty repairs during the years ended 31 December 2024 and 2023.

***Fair Value of Financial Instruments***

The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivables and other current assets, amounts due from/(to) related parties, accrued liabilities, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest.

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 — Quoted prices in active markets for identical assets and liabilities.

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| | |
|:---|:---|
| Level 2 — | Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
| Level 3 — | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |

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The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash, accounts receivable, inventory, prepaid expenses, other current assets, account payables, accrued liabilities, current maturities of operating lease liabilities, current portion of income taxes payable, customer deposits, due to related parties, and floor plan notes payables approximate the fair value of the respective assets and liabilities as of December 31, 2024 and December 31, 2023 due to their short-term nature.

***Revenue Recognition***

The majority of our revenue is from contracts with customers for the sale of boats, yachts, and trailers. We recognize revenue from boat, yacht, and trailer sales upon transfer of control of the boat, yacht, or trailer to the customer, which is generally upon acceptance of the boat, yacht, and trailer by the customer and the satisfaction of our performance obligations. The transaction price is determined with the customer at the time of sale.

Boat, yacht, and trailer sales transactions often include both cash and non-cash consideration . Cash consideration is paid directly by the Company's customers or by third-party financial institutions financing the Company's customer transactions. Non-cash consideration is in the form of trade-in used boats. The Company assigns a value to trade-in assets by estimating a future selling price, which the Company estimates based on relevant internal and third-party data, less a gross profit amount to be realized at the time the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale. Both cash and non-cash consideration may be received prior to or after the Company's performance obligation is satisfied. Any consideration received prior to the satisfaction of the Company's performance obligation is recognized as deferred revenue. Revenue recognized associated with trade-ins solely relates to end-user boat purchasers and not to boat manufactures or other wholesalers. As of December 31, 2024, the Company held trade-in boats recorded as inventory with a total value of $10,200,000. For the year ended December 31, 2024, the Company recognized $10,580,900 in revenue from the sale of trade-in boats. As of December 31, 2023, the Company held trade-in boats recorded as inventory with a total value of $4,260,000. For the year ended December 31, 2023, the Company recognized $5,194,900 in revenue from the sale of trade-in boats.

Revenue is recognized from the sale of products and commissions earned on new and pre-owned boats (including used, brokerage, consignment and wholesale) when ownership is transferred to the customer, which is generally upon acceptance or delivery to the customer. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits at such time.

*Principal versus Agent Considerations:*

We evaluate whether we are acting as a principal or an agent in each type of revenue transaction by assessing whether we control the specified goods or services before they are transferred to the customer, in accordance with ASC 606. We are the principal for sales of new, pre-owned, consignment, and wholesale boats, because we control the boat or yacht before transfer to the customer, bear the inventory risk, and have discretion in establishing prices. Accordingly, revenue from these transactions is recognized at the gross sales price.

For brokerage transactions, we act solely as an agent in arranging the sale of a boat between a seller and a buyer. In these transactions, we do not control the boat prior to transfer and do not bear the inventory risk. Therefore, we recognize revenue from brokerage transactions on a net basis, representing only the commission or fee earned. The transfer of control of the boat in brokerage transactions occurs directly between the seller and the buyer, and we do not obtain control at any point in the transaction.

We recognize customer deposits as revenue at the time of acceptance and the transfer of control to the customers. Total customer deposits of $2,676,435 recorded as of December 31, 2023 were recognized in revenue during the fiscal year ended December 31, 2024. Total customer deposits of $1,988,285 recorded as of December 31, 2022 were recognized in revenue during the fiscal year ended December 31, 2023.

We recognize deferred revenue from service operations, maintenance and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met.

Revenue from arranging financing, insurance and extended warranty contracts to customers through various third-party financial institutions and insurance companies is recognized when the related boats are sold. We are acting as an agent in the transaction; therefore, the commissions are recorded on a net basis. Subject to our agreements and in the event of early cancellation, prepayment or default of such loans or insurance contracts by the customer, we may be assessed a chargeback for a portion of the commission paid by the third-party financial institutions and insurance companies. We reserve for these chargebacks based on our historical experience with repayments or defaults. Chargebacks were not material to the combined financial statements for the years ended December 31, 2024.

We also finance our customers' boat and yacht purchases. Interest income is recognized in profit or loss as it is incurred, based on the time for alienation of right to use capital and effective interest rates. Interest income includes the amortization of any discount or premium or differences between the initial carrying amount of an interest-bearing asset and its amount at maturity calculated using the effective interest rate. The interest-bearing assets related to these financing arrangements are recorded within 'private label receivables' in Note 4 of the Notes to Combined Financial Statements. The income should be recognized when the Company's performance obligation in the contract is fulfilled, which refers the revenue is recognized when the customer obtains the control right of relevant goods or services. To obtain the right of control over related goods or services means to be able to dominate the use of such goods or the provision of such services and obtain almost all economic benefits therefrom.

Net revenue by category:

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| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2023** |
| New Boats Sales | 11010334 | 10211634 |
| Pre-owned Boat Sales | 84819543 | 78781369 |
| Finance Income – Azure | 2959159 | 2506926 |
| Service, Parts & Other Sales | 206526 | 339626 |
| Total Combined Revenue | $98995562 | $91839555 |

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***Selling, General and Administrative Expenses***

Selling, general, and administrative ("SG&A") expenses consist primarily of rent, insurance, utilities, and other customary operating expenses. All the costs are charged to operations when incurred. The Company recorded selling, general and administrative expenses of $1,752,325 and $1,952,483 for the years ended December 31, 2024 and 2023, respectively.

***Advertising and Marketing Costs***

Advertising and marketing costs include costs for advertising, marketing programs, brand promotions, customer mailings and promotional events, and boat shows. The Company recorded advertising and marketing expenses of $489,008 and $540,062 for the years ended December 31, 2024 and 2023, respectively.

***Income Taxes***

OTHYS, Boat Center and Azure had elected to be taxed as a Partnership under the Internal Revenue Code and similar codes in states in which the Company was subject to taxation. While this election was in effect, the income (whether distributed or not) was taxed for federal income tax purposes to OTHYS, Boat Center and Azure partners. Accordingly, no provision for federal income tax was required. As of the date of the completion of the Reorganization, OTH will effectively become the partner of OTHYS, Boat Center and Azure, which changes the level of taxation from the partners to OTH.

The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the combined financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The provisions of ASC 740-10-25, "Accounting for Uncertainty in Income Taxes," prescribe a more-likely-than-not threshold for combined financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures.

Penalties and interest related to underpayment of income tax are classified as income tax expense in the period incurred.

The Company believes there were no uncertain tax positions as of December 31, 2024 and 2023, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

***Earnings Per Share***

The Company computes earnings/(net loss) per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. For the years ended December 31, 2024 and 2023, there were no dilutive shares.

***Segment Reporting***

The Company operates as two segments: dealerships and financing services. The Company operates separate lines of business. Accordingly, the Company has separately reportable segments. The Dealership segment engages in the sale of new and pre-owned boats, arranges financing and insurance products, provides warranty sales, and offers slip and storage accommodations in certain locations. The financing service segment engages in providing financing products to individuals for marine, aviation and recreational vehicle purchases. Each reporting segment has discrete financial information and is regularly reviewed by the Company's chief operating decision maker ("CODM") Jason Ruegg, our CEO to assess performance and allocate resources. All of the Company's assets are located in the U.S.

***Related Parties***

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence, such as a family member or relative, shareholder, or a related corporation.

***Commitments and Contingencies***

In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that liability has been incurred, and the amount of the assessment can be reasonably estimated.

If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company's combined financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

***Subsequent event***

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the combined financial statements are available to be issued. Material subsequent events that required recognition or additional disclosure in the combined financial statements are presented.

***Recent Accounting Pronouncements***

Recently issued accounting pronouncements not yet adopted

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to combined financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the combined financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in our combined financial statements once adopted. We are currently evaluating the provisions of this ASU.

In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements related to accounting for the settlement of a debt instrument as an induced conversion. The amendments in this update are effective for annual reporting periods beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this guidance on our combined financial statements.

Recently adopted accounting pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this ASU retrospectively on December 31, 2024. Refer to Note 18, Segment Reporting and Information about Geographic Areas for the inclusion of the new required disclosures.

**NOTE 3. INVENTORY**

Inventories consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2024** | **2023** |
| New boats | 3430612 |  |
| Used boats | 19162810 | 12556812 |
| Total | 22593422 | 12556812 |

---

**NOTE 4. PRIVATE LABEL RECEIVABLES**

Receivables in this portfolio include products offered to individuals and businesses that finance the acquisition of boats and yachts from the Company for personal or commercial use. Retail financing includes retail installment contracts for new and used boats and yachts with retail customers.

Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

Finance receivables are accounted for as held for investment ("HFI") if the Company has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. The determination of intent and ability to hold for the foreseeable future is highly judgmental and requires the Company to make good faith estimates based on all information available at the time of origination or purchase. If the Company does not have the intent and ability to hold the receivables, then the receivables are classified as held for sale ("HFS").

Finance receivables classified as HFI are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. Cash flows from finance receivables, excluding wholesale and other receivables, that were originally classified as HFI are recorded as an investing activity since GAAP requires the statement of cash flows presentation to be based on the original classification of the receivables. Cash flows from wholesale and other receivables are recorded as an operating activity.

The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly. As of December 31, 2024 and 2023, no allowance for credit losses was recognized. The Company had no non-performing loans as of December 31, 2024 and 2023 and all loans were current.

The private label consisted of the following as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| **Borrower** | **December 31, 2024** | **December 31, 2023** |
| Gomez Marluz Charters |  | 980736 |
| Greenberg | 190492 | 194757 |
| Spruill | - | 427227 |
| Subtotal | 190492 | 1602720 |
| Allowance for credit losses | - | - |
| Total Private label receivables, net | 190492 | 1602720 |

---

**NOTE 5. PROPERTY AND EQUIPMENT**

Property and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2023** |
| Leasehold improvement | 661556 | 636543 |
| Buildings | 63600 | 63600 |
| Furniture and Fixtures | 62233 | 50236 |
| Equipment | 146282 | 124693 |
| Vehicles | 149983 | 161362 |
| Less: accumulated depreciation | (621945) | (366706) |
| Property, plant and equipment, net | 461709 | 669728 |

---

During the years ended December 31, 2024 and 2023, the Company incurred depreciation expense of $255,240 and $217,061, respectively.

**NOTE 6. GOODWILL**

Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business acquisition that are not individually identified and separately recognized.

On July 22, 2022, the owners of Boat Center, Inc. and the Company entered into a stock purchase agreement pursuant to which the Company paid $570,000 to purchase 100% of Boat Center, Inc issued and outstanding stocks. The purchase price over the fair value of assets acquired and liabilities assumed was recorded as goodwill. Recording these intangible assets would not be material. The entire excess purchase price has been recorded to goodwill.

**NOTE 7. DEFERRED COMPENSATION PLAN**

During 2021, the Company established a nonqualified deferred compensation plan under Section 409(a) of the Internal Revenue Code for eligible senior staff of the Company, to which the Company makes contributions. Benefits are earned over a 15-year cliff vesting period, which the Company ratably recognizes as expense over the vesting period. During the year ended December 31, 2021, the Company contributed $100,000 to the Plan, which is recorded in other assets in the accompanying combined balance sheets for the years ended December 31, 2024 and 2023, net of accumulated vested earnings of $13,333 and $13,333. Assets designated for this plan consist of mutual funds and exchange traded funds. The plan was cancelled in March 2024, and as of December 31, 2023, the plan was inactive.

During 2021, the Company purchased company owned life insurance contracts on certain employees that are key members of the management team and are important to the success of the Company. These policies had a death benefit of $4,590,214 with the Company as the sole beneficiary and a cash value of life insurance of $12,390 as of December 31, 2023. The cash value of the company owned life insurance policy is shown in other asses in the accompanying combined balance sheets, and the gain (loss) on cash value is shown in other income in the accompanying combined income statements. The plan was cancelled in March 2024, and as of December 31, 2024, the plan was inactive.

**NOTE 8. ACCOUNTS PAYABLE**

As of December 31, 2024 and 2023 the Company recorded accounts payable of $962,725 and $349,958, respectively.

Accounts payable consisted of the following as of December 31, 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** |
| Accounts Payable |  | 467066 |  | 49098 |
| Credit Card Payable | | 495,659 | | 300,860 |
|  | | 962,725 | | 349,958 |

---

**NOTE 9. NOTES PAYABLE – FLOOR PLAN**

The Company has a floor plan agreement with Red Oak Inventory Finance ("the Lender"), which has a stated total limit of $25,000,000 for new and used marine inventory. From time to time, total borrowings exceed stated limits due to the timing of floor plan draws for inventory shipments. These agreements are collateralized by new and used boat inventory. The agreement bears interest at a rate of SOFR plus basis points depending on whether a boat is new or used and the term period for held inventory. The maximum interest rates for new and used marine inventory held longer than 541 days or 541 days, respectively, is SOFR plus 8.85% or LIBOR plus 9.10%. The floor plan amounts outstanding at December 31, 2024 and 2023, respectively, were $20,444,604 and $9,338,695.

The Company has a floor plan agreement with LAVICTOIRE Finance (the Lender), which has a stated total limit of $3,250,000. The advances under this agreement are subject to the lender's discretion and are limited to 70% of the lower wholesale price of each item based on approved valuation sources. The agreement is collateralized by used boat inventory, with the lender retaining a security interest until repayment. The agreement bears interest at a rate of 1 Month CME Term SOFR plus 4.75%, with a minimum floor rate of 4.75% per annum. Principal repayment is required on the earlier of 360 days from the advance date or the sale of the financed inventory. The floor plan amounts outstanding on December 31, 2024 and 2023, respectively, were $150,913 and $1,455,593.

The total floor plan notes payable outstanding as of December 31, 2024 and 2023 were $20,595,517 and $10,794,288, respectively.

**NOTE 10. LINE OF CREDIT**

During 2018, the Company entered into a line of credit agreement with BB&T. The stated maximum line of credit amount under the line of credit agreement is $300,000. Outstanding advances under the line of credit note amounted to $292,440 as of December 31, 2023. The line of credit notes bears interest at a rate of 6.50% annually. The line is secured by certain assets of the Company. The line of credit matured on August 21, 2024. As of December 31, 2024, there is no outstanding advances under the line of credit.

During 2021, the Company entered into a line of credit agreement with First Carolina Bank. The stated maximum line of credit amount under the line of credit agreement is $1,300,000 and the maturity date is October 15, 2023. On October 11, 2023, the Company entered into a modification agreement with First Carolina Bank to extend the maturity to October 15, 2024 and credit limit to $3,000,000. The line of credit bearded interest rate of 8.50% annually. The outstanding balance became payable on demand by First Carolina Bank. As of December 31, 2024, the outstanding balance is $2,833,400, compared to the outstanding advances of $2,121,788 as of December 31, 2023.

**NOTE 11. SHORT-TERM LOAN PAYABLE**

The following table summarizes information with regard to short-term borrowings outstanding as of December 31, 2024 and December 31, 2023.

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2023** |
| Richard M. Lee Jr. maturing in July 2024 (1) |  | 977812 |
| 2413 Schuster Drive LLC maturing in June 2024 (2) |  | 70000 |
| Total |  | 1047812 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) On
 July 13, 2023, the Company borrowed $1,000,000 from Richard M. Lee Jr., an unrelated party
 individual, bearing 13.00% per annum, with maturity date of January 9, 2024. On February
 20, 2024, this loan is modified to have the maturity date changed to July 31, 2024. This
 loan has been paid off as of December 31, 2024 and all the accrued interest has been paid
 accordingly.

(2) On July 12,
 2023, the Company borrowed $70,000 from 2413 Schuster Drive LLC, an unrelated party. The
 interest rate of the loan is 0%, with maturity date of July 12, 2024. The Company used the
 stated rate of 13% as imputed interest rate, which was $4,836 and $4,288 for the years end
 December 31, 2024 and 2023, respectively. This loan has been paid off as of December 31,
 2024 and all the accrued interest is forgiven and recorded as other income.

**NOTE 12. LONG-TERM LOAN PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2023** |
| Payable to Northpoint Commercial Finance LLC. bearing interest on the outstanding principal amount of the Working Capital Loan at a rate equal to the Benchmark Rate plus six percent (5.50%) per annum. The total advance is $400,000 which was deposited to the Company in December 2022. The Company will pay principal on the Working Capital Loan in 36 monthly payments of $6,500 each on the 15th of each such month. On the 15th day of the 37th calendar month, the outstanding principal amount shall be due and payable-in-full. | 244000 | 322000 |
| Payable to Wells Fargo bearing interest at 3.99%. Requires monthly principal and interest payment. The original loan amount is $26,666 with terms of 84 months starting from November 21, 2021. | 12997 | 17369 |
| Payable to GMC Financial, secured by a Company vehicle. Monthly payments of principal and interest totaling $425 are due on the 19th of each month. Interest accrues at a rate of 3.09% annually. Loan matures in November 2026. | 6685 | 11836 |
| Payable to Land Rover Financial Group, secured by a Company vehicle. Monthly interest payments are due at the beginning of each month. Interest accrues at a rate of 8.59% annually. Loan matures in July 2029. | 103081 | 95323 |
| Total Long-term debt | 366763 | 446528 |

---

Maturity of long-term debt is as follows:

---

| | |
|:---|:---|
| Year ending December 31: | Amount |
| 2025 | $137468 |
| 2026 | 133953 |
| 2027 and thereafter | 95342 |
|  | $366763 |

---

**NOTE 13. LEASE**

The balances for the operating leases where the Company is the lessee are presented within the balance sheets as follows:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
| **Operating leases** | December 31, 2024 | December 31, 2023 |
| Right of use-assets | $1505986 | $271339 |
| Lease liability-current | 382731 | 129197 |
| Lease liability-non-current | 1136624 | 147209 |
| Total operating lease liabilities | $1519355 | $276406 |
| Weighted average remaining lease term (in years) | 4.25 | 2.23 |
| Weighted average discount rate (%) | 6.50% | 6.50% |

---

The components of lease expenses for the years ended December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2023** |
| Operating lease cost | $272087 | $182482 |
| Cost of other leases with period less than one year and variable lease costs | 191908 | 178951 |
|  | $463995 | $361433 |

---

The components of lease expenses for the year ended December 31, 2024 and 2023 were operating lease cost of $463,995 and $361,433, respectively.

Supplemental cash flow information related to leases for the years ended December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
| | **For the years ended December 31,** | **For the years ended December 31,** |
| <br>**Cash paid for amounts included in the measurement of lease liabilities:** | **2024** | **2023** |
| Operating cash flows from operating leases | $463995 | $361433 |
| **Supplemental noncash information:** |  |  |
| Right-of-use assets obtained in exchange for lease obligation: | $- | $- |

---

As of December 31, 2024, the maturities of operating lease liabilities (excluding short-term lease) are as follows:

---

| | |
|:---|:---|
| **For the year ending December 31, 2024** | **Operating Lease** |
| 2025 | $401998 |
| 2026 | 346352 |
| 2027 and thereafter | 817213 |
| Total lease payments | 1565563 |
| Less: Imputed interest | (46208) |
| Present value of lease liabilities | $1519355 |
| Less: current portion | (382731) |
| Lease obligations, noncurrent | 1136624 |

---

***Supplemental Information for Comparative Periods***

As of December 31, 2023, the maturities of operating lease liabilities (excluding short-term lease) are as follows:

---

| | |
|:---|:---|
| **For the year ending December 31, 2023** | **Operating Lease** |
| 2024 | $138035 |
| 2025 | 105979 |
| 2026 and thereafter | 44829 |
| Total lease payments | 288843 |
| Less: Imputed interest | (12437) |
| Present value of lease liabilities | $276406 |
| Less: current portion | (129197) |
| Lease obligations, noncurrent | 147209 |

---

**NOTE 14. CUSTOMER DEPOSITS**

We recognize customer deposits as revenue at the time of acceptance and the transfer of control to the customers. Total customer deposits of $17,771,105 recorded as of December 31, 2023 were recognized in revenue during the year ended December 31, 2024. Total customer deposits of 17,444,889 recorded as of December 31, 2024. Total customer deposits of $14,601,954 recorded as of December 31, 2022 were recognized in revenue during the year ended December 31, 2023. Total customer deposits of 15,037,104 recorded as of December 31, 2023.

The movement in customer deposits is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2023** |
| Balance at beginning of the year ended December 31 | $2676435 | 1988285 |
| Decrease in customer deposits as a result of recognizing revenue during the year was included in the customer deposits at the beginning of the year | (17771105) | (14601954) |
| Increase in customer deposits as a result of billings in advance of performance obligation under contracts | 17444889 | 15037104 |
| Refunded to the customers |  | 253000 |
| Balance at end of the year ended December 31 | $2350219 | 2676435 |

---

**NOTE 15. RELATED PARTIES TRANSACTIONS (As restated)**

The principal related parties with which the Company had transactions for the years ended December 31, 2024 and 2023 presented are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;***a)***  ***Related Parties –*** 

---

| | |
|:---|:---|
| Name | Relationship with the Company |
| OTH Realty II, LLC | Affiliates of the Company |
| Tom Ruegg | Family of the Shareholder |
| Jason Ruegg | Shareholder |
| Dan Ruegg and Diane Ruegg | Family of the Shareholder |
| Ruegg Capital Group | Affiliates of the Company |
| OTH Service NC, LLC | Affiliates of the Company |

---

&nbsp;&nbsp;&nbsp;&nbsp;***b)***  ***Amounts due to related parties*** 

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024<br> (As restated)** | **December 31, 2023** |
| Dan Ruegg and Diane Ruegg (1) | 1054179 | 1259178 |
| Tom Ruegg (2) | 358992 | 509673 |
| OTH Realty II, LLC (3) |  | 14096 |
| Ruegg Capital Group (3) | 9369 | 261375 |
| Jason Ruegg (3) |  | 100000 |
| **Total** | $**1422540** | $**2144322** |

---

(1) This loan was jointly provided by Mr. Dan Ruegg and his spouse, Mrs. Diane Ruegg to support the Company's
 daily operational needs. Pursuant to the agreement, Dan and Diane Ruegg agreed to loan the Company up to $1 million as an investment
 in Off the Hook Yacht Sales NC, LLC. The loan is unsecured, bears interest at an annual rate of 7%, and has no maturity date.

(2) This operating loan was obtained from Mr. Tom Ruegg on February 3, 2023, with a principal
 amount of $500,000 and a fixed annual interest rate of 7.00%. Interest is accrued and will be paid together with the principal
 upon repayment. The loan will mature on July 01, 2027.

(3) The
 Company borrowed funds from related parties for working capital purpose. The interest rate
 is 0%. The Company used the stated rate of 7.5% as imputed interest rate. These working capital
 advances are payable on demand. As of December 31, 2024 and 2023, these working capital advances
 amounted to $9,369 and $375,471, are reflected as related party loans on the accompanying
 balance sheets. During the years ended December 31, 2024 and 2023, in connection with these
 related party loans, the Company imputed interest of $40,746 and $43,229, respectively, and
 recorded interest expense and an increase in additional paid-in capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***c)***  ***Amounts due from related parties*** 

Amounts due from related parties consisted of the following for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2023** |
| OTH Service NC, LLC | 11313 |  |
| **Total** | $**11313** | $**-** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***d)***  ***Related party transactions*** 

***Member Contribution***

During the year ended December 31, 2023, the Company recorded member capital contributions totaling $1,770,000, primarily related to related party loans forgiveness. In 2024, the Company received additional member contributions totaling $920,969 for related party loan forgiveness, which were recorded in additional paid-in capital. No equity securities were issued in connection with these capital contributions.

***Member Distribution***

The Company's member distribution for the years ending December 31, 2024 and 2023, was $736,289 and $286,057, respectively.

**NOTE 16. INCOME TAXES (As restated)**

OTHYS (a Limited liability company ("LLC") since inception), Boat Center (an LLC since inception) and Azure (an LLC since inception) had elected to be taxed as a partnership under the provisions of the Internal Revenue Code (the "Code"). Under this Code, OTHYS, Boat Center and Azure does not pay federal corporate income taxes on its taxable income. Instead, the member is liable for individual federal income taxes on the Operating Entity's taxable income. Therefore, no provision or liability for federal income taxes has been included in the accompanying financial statements.

The income tax provision for the years ended December 31, 2024 and 2023 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br> December 31, 2024** | **For the year ended<br> December 31, 2023** |
| Computed "Expected" Income Taxes | $208439 | $211517 |
| Non C-Corporation (Income) | (208439) | (211517) |
| Entity Level State Income Tax on LLC Income | - | - |
| **Computed "Expected" Income Taxes** | **-** | **-** |

---

Uncertain tax positions

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income taxes for the years ended December 31, 2024 and in 2023. The Company also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2024.

**NOTE 17. SHAREHOLDERS' EQUITY (As restated)**

***Common stock***

On January 3, 2025, Off The Hook YS Inc. was incorporated in Neveda and became the holding company pursuant to the Reorganization described in Note 1. The total authorized shares of common stock were 100,000,000 shares, each common stock is entitled to one vote.

Each common stock has $0.001 par value. As of December 31, 2024 and 2023, the Company had issued and outstanding shares of common stock of 20,000,000 and 20,000,000, respectively.

***Preferred Stock***

The Company authorized 100,000 shares of blank check preferred stock in one or more series or classes and to designate the rights, preferences and privileges of each series or class, which may be greater than the rights of our Common Stock. There are no shares of preferred stock designated or outstanding as of December 31, 2024, and 2023.

***Additional Paid-in Capital***

During the year ended December 31, 2023, the Company recorded member capital contributions totaling $1,770,000, primarily related to related party loans forgiveness. In 2024, the Company received additional member contributions totaling $920,969 for related party loan forgiveness, which were recorded in additional paid-in capital. No equity securities were issued in connection with these capital contributions.

***Member Distribution***

The Company's member distribution for the years ending December 31, 2024 and 2023, was $736,289 and $286,057, respectively.

**NOTE 18. SEGMENT INFORMATION (As restated)**

The company operates primarily in two distinct business segments: Boat Sales and Azure Funding.

Boat Sales: Specializing in the buying, selling, and wholesaling of yachts and boats. Having a boat dealership created to run Yellow Fin sales in Miami.

Azure Funding: A recreational loan broker and lender providing financing solutions for individuals, dealerships, and brokerages.

The Company's segment profit or loss is measured using gross profit, which is the primary performance metric utilized by management to evaluate the financial results of each reportable segment and to make decisions regarding resource allocation. Although gross profit is reviewed by management for operational analysis, operating income (loss) is the primary measure used by the CODM for segment performance assessment and resource allocation. For segment reporting purposes, gross profit is calculated as the difference between segment revenue and the direct costs associated with specific projects or contracts. These direct costs include materials, labor, subcontractors, and other project-specific expenses directly attributable to the construction activities of each segment.

The financial performance of each segment is regularly reviewed with operational leaders in charge of these segments, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and others. The CODM of the Company is Jason Ruegg, CEO. The Company's segment disclosures are presented in accordance with the guidance set forth in ASC 280, *Segment reporting*. Specifically, the disclosures comply with the requirements outlined in ASC 280-10-50-22 through 50-26, which mandate that an entity disclose certain information about its operating segments to enable users of the financial statements to understand the financial performance of different parts of the business.

In accordance with ASC 280-10-50-22, the Company discloses financial information for each reportable segment, including revenue, operating profit or loss, and other significant items that are used by the chief operating decision maker (CODM) in assessing the performance and making decisions about the allocation of resources. The Company identifies its reportable segments based on the internal management structure, and all relevant information is disclosed in the segment footnote as required.

In accordance with ASC 280-10-50-29, the disclosures also adhere to the requirements of which mandate that the financial information provided for each segment should include items such as capital expenditures, depreciation, and amortization, when appropriate. The disclosures reflect the performance and financial position of each segment, and a reconciliation of segment totals to the overall combined financial results, including total segment profit or loss and other significant disclosures.

The Company's segment disclosures are presented in accordance with the requirements set forth in ASC 280-10-50-30(b) and (c), which specify the need to disclose the total of reportable segments' profit or loss, as well as the basis of measurement used to determine the segment results.

In accordance with ASC 280-10-50-30(b), the Company provides the total of profit or loss for all reportable segments, which reflects the combined operating results for each reportable segment included in the financial statements. The total segment profit or loss represents the aggregation of segment results before the allocation of corporate expenses and certain other items not attributable to specific segments.

As required by ASC 280-10-50-30(c), the Company has also disclosed the basis of measurement for segment profit or loss. The measure used to assess segment performance and allocate resources is operating income (or loss), which includes revenues, cost of sales, and directly attributable operating expenses for each segment. The operating income (or loss) for each reportable segment is reviewed by the Company's chief operating decision maker (CODM) and serves as the primary performance metric used in resource allocation and operational decision-making.

Segment information is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2024 (As restated)** | **For the Year Ended December 31, 2024 (As restated)** | **For the Year Ended December 31, 2024 (As restated)** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| Revenues | 96036403 | 2959159 | 98995562 |
| Cost of revenues | 88973509 | 1241143 | 90214652 |
| Gross profit | 7062894 | 1718016 | 8780910 |
| **Operating expenses** |  |  |  |
| Depreciation and amortization | 255012 | 228 | 255240 |
| Selling, general and administrative | 1529191 | 223134 | 1752325 |
| Advertising and marketing | 438944 | 50064 | 489008 |
| Professional services | 418723 | 14484 | 433207 |
| Salaries and wages | 1777483 | 912360 | 2689843 |
| Rent expenses | 392722 | 84642 | 477364 |
| Total operating expenses | 4812075 | 1284912 | 6096987 |
| **Operating income** | 2250819 | 433104 | 2683923 |
| **Other income (expenses)** |  |  |  |
| Interest expense, net | (1624346) | 1885 | (1622461) |
| Other income | 20122 | 1985 | 22107 |
| Other expense | (91885) |  | (91885) |
| **Total other income (expense)** | (1696109) | 3870 | (1692239) |
| **Net Income** | 554710 | **436974** | **991684** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| Revenues | 89332629 | 2506926 | 91839555 |
| Cost of revenues | 81395603 | 1297414 | 82693017 |
| Gross profit | 7937026 | 1209512 | 9146538 |
| **Operating expenses** |  |  |  |
| Depreciation and amortization | 207343 | 9718 | 217061 |
| Selling, general and administrative | 1704460 | 248023 | 1952483 |
| Advertising and marketing | 458778 | 81284 | 540062 |
| Professional services | 238455 | 37553 | 276008 |
| Salaries and wages | 1658141 | 1100935 | 2759076 |
| Rent expenses | 249912 | 113647 | 363559 |
| Total operating expenses | 4517089 | 1591160 | 6108249 |
| **Operating income (loss)** | 3419937 | (381648) | 3038289 |
| **Other income (expenses)** |  |  |  |
| Interest expense, net | (1676053) | 1104 | (1674949) |
| Other income | 4288 |  | 4288 |
| Other expense | (51450) | (20675) | (72125) |
| **Total other income (expense)** | (1723215) | (19571) | (1742786) |
| **Net Income (Loss)** | **1696722** | **(401219)** | **1295503** |

---

The total assets for each segments are presented in accordance with segment reporting requirements of ASC 280-10, which requires the disclosure of total assets for each reportable segment.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2024 (As restated)** | **As of December 31, 2024 (As restated)** | **As of December 31, 2024 (As restated)** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| **ASSETS** |  |  |  |
| Cash and cash equivalents | $2714469 | $212657 | $2927126 |
| Accounts receivable, net | 59644 | 44673 | 104317 |
| Inventory | 22593422 |  | $22593422 |
| Prepaid expense | 2337100 | 51682 | 2388782 |
| Private label receivable |  | 190492 | 190492 |
| Other current assets | 542856 | 297545 | $840401 |
| Property, plant and equipment, net | 459658 | 2051 | 461709 |
| Other receivable | 42192 |  | $42192 |
| Due from related party | 11313 |  | 11313 |
| Right-of-use assets | 1450367 | 55619 | $1505986 |
| Goodwill | 570000 |  | 570000 |
| **TOTAL ASSETS** | $**30781021** | $**854719** | $**31635740** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** |
|  | **Boat Sales** | **Azure Funding** | **Combined** |
| **ASSETS** |  |  |  |
| Cash and cash equivalents | $1614764 | $39867 | 1654631 |
| Accounts receivable, net | 153355 | 25765 | 179121 |
| Inventory | 12556812 |  | 12556812 |
| Prepaid expense | 2333452 | 60085 | 2393537 |
| Private label receivable |  | 1602720 | 1602720 |
| Other current assets | 198757 | 73369 | 272126 |
| Property, plant and equipment, net | 667449 | 2279 | 669728 |
| Other receivable | 132227 |  | 132227 |
| Right-of-use assets | 145782 | 125557 | 271339 |
| Goodwill | 570000 |  | 570000 |
| **TOTAL ASSETS** | $**18372599** | $**1929642** | $**20302241** |

---

**NOTE 19. COMMITMENTS AND CONTINGENCIES**

***Commitments***

As of December 31, 2024 and 2023, the Company did not have any significant capital and other commitments.

***Contingencies***

Legal Proceedings

From time to time, we may become involved in litigation or other legal proceedings. We are not currently a party to any material litigation or legal proceedings. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

The Company purchases substantially all of its new boats from Nortec and Yellowfin at the prevailing prices charged by the boat manufacturer to all franchise dealers. The Company's sales volume could be adversely impacted by Nortec's to supply it with an adequate supply of popular models due to unforeseen circumstances or as a result of an unfavorable allocation of boats by the manufacturer.

The Company's facilities are subject to federal, state and local provisions regulating discharge of materials into the environment. Compliance with these provisions has not had, nor does the Company expect such compliance to have, any material effect upon the capital expenditures, net income, financial condition or competitive position of the Company. Management believes that its current practices and procedures for the control and disposition of such materials comply with the applicable federal and state requirements. The Company is subject to legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome arising out of any such matters will have a material adverse effect on its financial position, cash flows or results of operations on an individual basis or in the aggregate. As of December 31, 2024 and 2023, the Company is not a party to any material legal or administrative proceedings.

**NOTE 20. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS**

***Restatement of previously issued combined financial statements as of and for the year ended December 31, 2024***

Subsequent to the issuance of the combined financial statements as of and for the year ended December 31, 2024, the Company determined that it was necessary to restate those financial statements due to a change in the planned structure for its proposed going public transaction.

Off The Hook Yacht Florida Acquisition Corp (the "OTH Acquisition") is a company established in Florida on August 12, 2024. On December 6, 2024, the Company entered into a Stock Purchase Agreement pursuant to which OTH Acquisition was expected to acquire all of the ownership interests in OTHYS, Azure, and Boat Center. In anticipation of this transaction, the Company combined the financial results of these entities in its previously issued financial statements for the year ended December 31, 2024.

On May 5, 2025, OTH entered into a Stock Exchange Agreement with OTH Acquisition and its shareholders, under which the shareholders of OTH Florida would exchange all of their shares for shares of OTH, immediately prior to the proposed public listing.

However, in June 2025, management made a strategic decision to pursue the going public transaction using a different corporate structure and listing vehicle, and accordingly, to discontinue the plan to use OTH Acquisition as the public company. As a result, the previously planned business combination and share exchange transactions involving OTH Acquisition and its subsidiaries will no longer occur in the form originally contemplated.

The impacts of the restatement as of and for the year ended December 31, 2024 are as follows:

*Combined Balance Sheet*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **As Previously Reported** | **Adjustment** | **Note** | **As Restated** |
| Cash and cash equivalents | $2981874 | (54748) |  | 2927126 |
| Prepaid expense | 2408782 | (20000) |  | 2388782 |
| Prepaid expense - related party | 600000 | (600000) | 15 |  |
| Total current assets | 29533738 | (674748) |  | 28858990 |
| Due to related party | 1522640 | (100100) | 15 | 1422540 |
| Total current liabilities | 29402531 | (100100) |  | 29302431 |
| Additional paid-in capital | 3394944 | (620000) | 15&17 | 2774944 |
| Retained earnings | (1872905) | 45351 |  | (1827554) |
| Total liabilities and members' equity | 32310489 | (674749) |  | 31635740 |

---

*Combined Statement of Operations*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
|  | **As Previously <br> Reported** | **Adjustment** | **Note** | **As Restated** |
| Selling, general and administrative | $1752676 | (351) | 2 | 1752325 |
| Professional services | 478207 | (45000) |  | 433207 |
| Total operating expenses | 6142338 | (45351) |  | 6096987 |
| Net Income | 946333 | 45351 |  | 991684 |

---

*Combined statements of Changes in Members' Equity*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
|  | **As Previously <br> Reported** | **Adjustment** | **Note** | **As Restated** |
| Additional paid-in capital | $3394944 | (620000) | 15&17 | 2774944 |
| Retained earnings | (1872905) | 45351 |  | (1827554) |
| Total members' equity | 1542039 | (574649) |  | 967390 |

---

*Combined Statement of Cash Flows*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
|  | **As Previously <br> Reported** | **Adjustment** | **Note** | **As Restated** |
| Net income | $946333 | $45351 |  | $991684 |
| Prepaid expense | (15245) | 20000 |  | 4755 |
| Net cash used in operating activities | (7173584) | 65352 |  | (7108232) |
| Deposits on business combination | (600000) | 600000 |  |  |
| Net cash used in investing activities | (625012) | 600000 |  | (25012) |
| Member contribution | 1540969 | (620000) | 15&17 | 920969 |
| Proceeds from related-party debt | 1446870 | (100100) | 15 | 1346770 |
| Net cash provided by financing activities | 9125839 | (720099) |  | 8405740 |
| Net change in cash | 1327243 | (54747) |  | 1272496 |

---

**NOTE 21. SUBSEQUENT EVENTS**

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the combined financial statements are available to be issued. Other than the material subsequent events disclosed above in the notes to financial statements, no other material subsequent events that required recognition or additional disclosure in the combined financial statements are presented.

On April 29, 2025, the Company's board of directors and stockholders approved the Off The Hook YS Inc. 2025 Stock Incentive Plan, or the 2025 Plan. The 2025 Plan will become effective immediately prior to the closing of the Company's initial public offering. Any of employees, directors, consultants, and other service providers, or those of the Company's affiliates, are eligible to participate in the 2025 Plan and may be selected by the compensation committee to receive an award. The following types of awards may be granted to participants under the 2025 Plan: (i) incentive stock options, or ISOs; (ii) nonqualified stock options, or NQOs and together with ISOs, options, (iii) stock appreciation rights, (iv) restricted stock, or (v) restricted stock units. A total of 4,000,000 shares of Common Stock have been reserved under 2025 Plan.

On July 3rd, 2025, the shareholders of Off The Hook YS Inc. (the "OTH Owners") entered into an Amended and Restated Agreement for the Purchase and Sale of Capital Stock (the "Amended SPA") with Off The Hook Acquisition Corp., a Florida corporation ("OTH FL"). Pursuant to the Amended SPA, the OTH Owners agreed to sell and transfer to OTH FL 25% of the issued and outstanding common stock of Off The Hook YS Inc. (the "Transferred Securities") for total consideration of $3.0 million, payable as follows:

● $600,000 in cash as a non-refundable deposit upon the execution of the Amended SPA; and

● $2.4 million payable at the closing, which is conditioned upon, among other things, the effectiveness of the Company's registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission.

After the consummation of the consolidation of the OTH Companies and the transaction contemplated under the Amended SPA, but before the closing of this offering, the OTH Owners will collectively hold 75% of the issued and outstanding shares of the Company, and OTH FL will hold 25%.

As this transaction does not result in a change of control of the Company, it has no impact on the Company's combined financial statements.

 **Shares of Common Stock**

**Off The Hook YS Inc.**

**_______________________________** 

**PRELIMINARY PROSPECTUS**

________________________________

**ThinkEquity**

Until , 2025 (25 days after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to the dealers' obligation to deliver a prospectus when acting as an underwriter and with respect to their unsold allotments or subscriptions.

&nbsp;&nbsp;&nbsp;&nbsp;, 2025

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution.**

The following table indicates the expenses to be incurred in connection with the Offering described in this registration statement, other than underwriting discounts and commissions, all of which will be paid by us. All amounts are estimates except the SEC registration fee, the Financial Industry Regulatory Authority, Inc., or FINRA, filing fee and the NYSE American listing fee.

---

| | |
|:---|:---|
|  | **Amount** |
| SEC registration fee | $4677 |
| FINRA filing fee | 5083 |
| NYSE American listing fee | 50000 |
| Accountants' fees and expenses | 80000 |
| Legal fees and expenses | 400000 |
| Underwriter non-accountable expenses | 250000 |
| Transfer agent's fees and expenses | 100000 |
| Printing and Edgar expenses | 20000 |
| Miscellaneous | 15000 |
| Total expenses | $924760 |

---

**Item 14. Indemnification of Directors and Officers.**

We are a Nevada corporation and generally governed by Chapter 78 of the Nevada Revised Statutes (the "NRS").

Section 78.138 of the NRS provides that, unless the corporation's articles of incorporation provide otherwise, a director or officer will not be individually liable unless it is proven that (i) the director's or officer's acts or omissions constituted a breach of his or her fiduciary duties, and (ii) such breach involved intentional misconduct, fraud, or a knowing violation of the law.

Section 78.7502 of the NRS permits a company to indemnify its directors and officers against expenses, judgments, fines, and amounts paid in settlement actually and reasonably incurred in connection with a threatened, pending, or completed action, suit, or proceeding, if the officer or director (i) is not liable pursuant to NRS 78.138, or (ii) acted in good faith and in a manner the officer or director reasonably believed to be in or not opposed to the best interests of the corporation and, if a criminal action or proceeding, had no reasonable cause to believe the conduct of the officer or director was unlawful. Section 78.7502 of the NRS precludes indemnification by the corporation if the officer or director has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court determines that in view of all the circumstances, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Section 78.751 of the NRS permits a Nevada company to indemnify its officers and directors against expenses incurred by them in defending a civil or criminal action, suit, or proceeding as they are incurred and in advance of final disposition thereof, upon determination by the stockholders, the disinterested board members, or by independent legal counsel. If so provided in the corporation's articles of incorporation, bylaws, or other agreement, Section 78.751 of the NRS requires a corporation to advance expenses as incurred upon receipt of an undertaking by or on behalf of the officer or director to repay the amount if it is ultimately determined by a court of competent jurisdiction that such officer or director is not entitled to be indemnified by the company. Section 78.751 of the NRS further permits the company to grant its directors and officers' additional rights of indemnification under its articles of incorporation, bylaws, or other agreement. A right to indemnification or to advancement of expenses arising under a provision of the articles of incorporation or bylaws is not eliminated or impaired by an amendment to such provision after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such act or omission explicitly authorizes such elimination or impairment after such act or omission has occurred.

Section 78.752 of the NRS provides that a Nevada company may purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director, officer, employee, or agent of the company, or is or was serving at the request of the company as a director, officer, employee, or agent of another company, partnership, joint venture, trust, or other enterprise, for any liability asserted against him and liability and expenses incurred by him in his capacity as a director, officer, employee, or agent, or arising out of his status as such, whether or not the company has the authority to indemnify him against such liability and expenses.

Our board of directors may adopt articles of incorporation or bylaws from time to time with respect to indemnification, to provide at all times the fullest indemnification permitted by the NRS, and may cause the corporation to purchase and maintain insurance on behalf of any person who is or was a director or officer of the corporation, or is or was serving at the request of the corporation as a director or officer of another corporation, or as its representative in a partnership, joint venture, trust, or other enterprise against any liability asserted against such person and incurred in any such capacity or arising out of such status, whether or not the corporation would have the power to indemnify such person. The indemnification provided herein shall continue as to a person who has ceased to be a director, officer, employee, or agent, and shall inure to the benefit of the heirs, executors and administrators of such person.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Item 15. Recent Sales of Unregistered Securities.**

During the past three years, we have issued the following securities which were not registered under the Securities Act. We believe that each of the following issuance was exempt from registration under the Securities Act in reliance on Regulation D under the Securities Act or pursuant to Section 4(2) of the Securities Act regarding transactions not involving a public offering or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. No underwriters were involved in these issuances of securities.

**Item 16. Exhibits and Financial Statement Schedules.**

(a) Exhibits.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Exhibit** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1\*\* | [Articles of Incorporation, dated January 3, 2025](https://www.sec.gov/Archives/edgar/data/2067767/000149315225011456/ex3-1.htm) |
| 3.2\*\* | [Bylaws](https://www.sec.gov/Archives/edgar/data/2067767/000149315225011456/ex3-2.htm) |
| 5.1\* | Opinion of Lucosky Brookman LLP |
| 10.1 | [Lease Agreement for Wilmington headquarters, dated September 4, 2024](ex10-1.htm) |
| 10.2 | [Lease Modification Agreement for Wilmington headquarters, dated January 10, 2025](ex10-2.htm) |
| 10.3# | [Employment Agreement, dated May 9, 2025 with Jason Ruegg](ex10-3.htm) |
| 10.4# | [Employment Agreement, dated May 9, 2025 with Brian John](ex10-4.htm) |
| 10.5# | [Employment Agreement, dated May 9, 2025 with Chad Corbin](ex10-5.htm) |
| 10.6# | [Employment Agreement, dated May 9, 2025 with Blake Phillips](ex10-6.htm) |
| 10.7\*\* | [Stock Purchase Agreement between stockholders of Off the Hook Florida, Off the Hook Yacht Sales North Carolina and Azure Funding LLC and OTH Simon Marin YF LLC dated December 6, 2025](https://www.sec.gov/Archives/edgar/data/2067767/000149315225011456/ex10-6.htm) |
| 10.8\*\* | [Amended and Restated Agreement for the Purchase and Sale of Capital Stock between OTH Owners and Off The Hook Acquisition Corp, dated July 3, 2025](https://www.sec.gov/Archives/edgar/data/2067767/000149315225011456/ex10-7.htm) |
| 10.9 | [Red Oak Inventory Finance Agreement dated October 31, 2024](ex10-9.htm) |
| 10.10 | [Personal Guarantee by Jason Ruegg](ex10-10.htm) |
| 10.11 | [Master Services Agreement between Off The Hook YS Inc. and NexGen AI, dated February 25, 2025.](ex10-11.htm) |
| 10.12 | [Loan Agreement between Off The Hook YS Inc. and Dan and Diane Ruegg, dated July 22, 2019.](ex10-12.htm) |
| 10.13 | [Loan Agreement between Off The Hook YS Inc. and Tom Ruegg, dated February 23, 2023.](ex10-13.htm) |
| 10.14 | [Authorized Dealer Agreement, between Off the Hook Yacht Sales NC, LLC and Yellowfin Yachts LLC, dated May 5, 2025](ex10-14.htm) |
| 10.15 | [Nor-Tech Hi-Performance Boats Sales & Dealership Agreement, between Off the Hook Yacht Sales NC, LLC and NT Manufacturing, LLC, dated April 25, 2025](ex10-15.htm) |
| 14.1\* | Code of Conduct |
| 21.1\* | List of Subsidiaries of the Registrant |
| 23.1 | [Consent of M&K CPAs PLLC, Independent Registered Public Accounting Firm](ex23-1.htm) |
| 24.1\*\* | [Power of Attorney (included on the signature page of this initial Registration Statement)](https://www.sec.gov/Archives/edgar/data/2067767/000164117225018050/forms-1.htm#SS_001) |
| 99.1\* | Compensation Committee Charter |
| 99.2\* | Nominating and Corporate Governance Committee Charter |
| 99.3\* | Audit Committee Charter |
| 99.4\* | Whistleblower Policy |
| 107\*\* | [Filing Fee Table](https://www.sec.gov/ix?doc=/Archives/edgar/data/2067767/000164117225018050/ex107.htm) |

---

\* To be filed by amendment

\*\* Filed previously

# Indicates a contract, compensatory plan or arrangement to which a director or executive officer is a party or in which one or more directors or executive officers are eligible to participate.

☐ Certain portions of this exhibit (marked by "[\*\*\*]") have been omitted pursuant to confidential treatment.

(b) Financial Statement Schedules. Schedules not listed above have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or notes thereto.

**Item 17. Undertakings.**

The undersigned registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:

(i) To include any prospectus required section 10(a)(3) of the Securities Act of 1933, as amended (the "Securities Act");

(ii) (ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and

(iii) (iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Securities and Exchange Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That, for the purpose of determining liability under the Securities Act to any purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;(A) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

(B) Each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5) That for the purpose of determining liability of the registrant
under the Securities Act to any purchaser in the initial distribution of securities, the undersigned registrant undertakes that in a
primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities
to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;(I) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to any charter provision, bylaw or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Jupiter, State of Florida, on August 8, 2025.

---

| | |
|:---|:---|
| **OFF THE HOOK YS INC.** | **OFF THE HOOK YS INC.** |
| By: | */s/ Brian S. John* |
|  | Brian S. John |
|  | Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Brian S. John* | Chief Executive Officer and Director | August 8, 2025 |
| Brian S. John |  |  |
| */s/ Chad Corbin* | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | August 8, 2025 |
| Chad Corbin |  |  |
| */s/ Jason Ruegg* | Founder, President and Chairman of the Board | August 8, 2025 |
| Jason Ruegg |  |  |
| */s/ Mike Kosloske* | Director | August 8, 2025 |
| Mike Kosloske |  |  |
| */s/ Mary Reynolds* | Director | August 8, 2025 |
| Mary Reynolds |  |  |
| */s/ Jim Segrave* | Director | August 8, 2025 |
| Jim Segrave |  |  |
| */s/ George Jousma* | Director | August 8, 2025 |
| George Jousma |  |  |
| */s/ Andrew Simmons* | Executive Vice President and Director | August 8, 2025 |
| Andrew Simmons |  |  |
| */s/ Robert Gonnelli* | Director | August 8, 2025 |
| **Robert Gonnelli** |  |  |

---

## Exhibit 10.1

**Exhibit 10.1**

---

| | |
|:---|:---|
| ![](ex10-1_001.jpg) | **COMMERCIAL LEASE AGREEMENT**<br> **(Single Tenant Facility)**  |

---

**(Note: This form is not intended to be used as a Sublease and SHOULD NOT be used in Sublease circumstances)**

**THIS COMMERCIAL LEASE AGREEMENT,** including any and all addenda attached hereto ("Lease"), is by and between <u>Jel Wade Industrial. LLC</u>_______________________, a(n) <u>North Carolina limited liability company</u>__________________________("Landlord"), (individual *or* State of formation and type of entity)

whose address is___________<u>516 Orange Street, Raleigh, NC 27609</u>, and <u>Off the Hook Yacht Sales NC LLC</u>_____________________________, a(n) <u>North Carolina limited liability company</u>___________________________("Tenant"). (individual *or* State of formation and type of entity)

whose address is <u>1701 J.E.L Wade D_rive, WilmingtQn, NC 28401</u>______________________________________________

☒ If this box is checked, the obligations of Tenant under this Lease are secured by the guaranty of <u>Jason Ruegg</u> (name(s) of guarantor(s)) attached hereto and incorporated herein by reference. **(Note: Attach Guaranty Agreement (Form 595-T) or attorney drafted guaranty).**

For and in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**PREMISES**

1. Landlord leases unto Tenant, and Tenant hereby leases and takes upon the terms and conditions which hereinafter appear, the following described property, including any improvements located thereon (hereinafter called the "Premises"), to wit:

(Address): <u>Being all of the property identified as 1701 J.E.L. Wade Drive, Wilmington, NC 28401 (including all easement rights) and the travel lift used for operations on the Premises; excluding any portion of said property leased by Jeff Brown Yachts, Inc.</u> pursuant to written lease in effect on the date of execution of this Lease. (The Lease Premises does not include any Marina Units.)

☐ All ☒ A portion of the property in Deed Reference: Book <u>6326</u>________, Page No.<u>497</u>_________, <u>New Hanover County</u>;______ consisting of approximately 11 acres.

Plat Reference: Lot(s)__________________, Block or Section_____________, as shown on Plat Book or Slide______________ at Page(s)____________,______________ County, consisting of <u>11</u> acres and Marina Units.

☒ If this box is checked, Premises shall mean that property described on **Exhibit A** attached hereto and incorporated herewith by reference.

(For information purposes only, the tax parcel number of the Premises is: <u>R04805-001-003-000</u> *_______________________*)

**☐ Occupancy Limitation:** If this box is checked, notwithstanding any greater occupancy of the Premises which may be permitted by any law, statute, ordinance, regulation, rule (including rules enacted pursuant to any private use restrictions), as the same may be amended from time to time, Tenant shall not allow occupancy of the Premises to exceed_________persons per______________ square feet in the Premises at any one time.

**TERM**

2. The term of this Lease shall commence on <u>September 4, 2024</u> ("Lease Commencement Date"), and shall end at 11:59 p.m. (based upon the time at the locale of the Premises) on <u>August 31, 2029</u>, unless sooner terminated as herein provided. The first Lenase Year Anniversary shall be the date twelve (12) calendar months after the first day of the first full month immediately following the Lease Commencement Date and successive Lease Year Anniversaries shall be the date twelve (12) calendar months from the previous Lease Year Anniversary.

☒ If this box is checked, Landlord shall have the option of terminating this Lease, upon written notice received by Tenant at least <u>eight (8) months</u> prior to termination, during years three (3) through five (5) of the then expiring term of this Lease.

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| ![](image_007.jpg) | North Carolina Association of REALTORS®, Inc | **STANDARD FORM 592-T** |
| ![](image_007.jpg) |  | **Revised 7/2023** |
| ![](image_007.jpg) | Tenant Initials _____Landlord Initials____ | **© 7/2023** |

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☒ If this box is checked, Tenant shall have the option of renewing this Lease, upon written notice given to Landlord at least _______ days prior to the end of the then expiring term of this Lease, for additional term(s) as specified on **Exhibit B**.

☒ **Option to Lease-** If this box is checked, Tenant, upon the payment of the sum of $_______________________(which sum is not rental or security deposit hereunder, but is consideration for this Option to Lease and is non-refundable under any circumstances) shall have a period of ____________________days prior to the Lease Commencement Date ("Option Period") in which to inspect the Premises and make inqui1y regarding such sign regulations, zoning regulations, utility availability, private restrictions or permits or other regulatory requirements as Tenant may deem appropriate to satisfy itself as to the use of the Premises for Tenant's intended purposes. Tenant shall conduct all such on-site inspections, examinations, inquiries and other review of the Premises in a good and workmanlike manner, shall repair any damage to the Premises caused by Tenant's entry and on-site inspections and shall conduct same in a manner that does not unreasonably interfere with Landlord's or any tenant's use and enjoyment of the Premises. In that respect, Tenant shall make reasonable efforts to undertake on-site inspections outside of the hours any tenant's business is open to the public and shall give prior notice to the tenant at the Premises of any entry onto the Premises for the purpose of conducting inspections. Upon Landlord's request, Tenant shall provide to Landlord evidence of general liability insurance. Tenant shall also have a right to review and inspect all contracts or other agreements affecting or related directly to the Premises and shall be entitled to review such books and records of Landlord that relate directly to the operation and maintenance of the Premises, provided, however, that Tenant shall not disclose any information regarding the Premises (or any tenant therein) unless required by law and the same shall be regarded as confidential, to any person, except to its attorneys, accountants, lenders and other professional advisors, in which case Tenant shall obtain their agreement to maintain such confidentiality. Tenant assumes all responsibility for the acts of itself, its agents or representatives in exercising its rights under this Option to Lease and agrees to indemnify and hold Seller harmless from any damages resulting therefrom. This indemnification obligation of Tenant shall survive the termination of this Option to Lease or this Lease. Tenant shall, at Tenant's expense, promptly repair any damage to the Premises caused by Tenant's entry and on-site inspections. **IF TENANT CHOOSES NOT TO LEASE THE PREMISES, FOR ANY REASON OR NO REASON, AND PROVIDES WRITTEN NOTICE TO LANDLORD THEREOF PRIOR TO THE EXPIRATION OF THE OPTION PERIOD, THEN THIS LEASE SHALL TERMINATE AND NEITHER PARTY SHALL HAVE ANY FURTHER OBLIGATIONS HEREUNDER AND LANDLORD SHALL RETURN TO TENANT ANY RENTAL OR SECURITY DEPOSIT PAID TO LANDLORD HEREUNDER.** Tenant shall be deemed to have exercised its Option to Lease and to be bound under the terms of this Lease if (i) Tenant shall occupy the Premises prior to the expiration of the Option Period, whereupon the date of occupancy shall be deemed the Lease Commencement Date, or (ii) Tenant shall not provide written notice to Landlord of its termination of this Lease prior to the expiration of the Option Period.

**RENTAL**

3. Beginning on___________________________("Rent Commencement Date"), Tenant agrees to pay Landlord (or its Agent as directed by Landlord), without notice, demand, deduction or set off, an annual rental of <u>$216 000.00</u>________________, payable in equal monthly installments of <u>$18,000.00</u>____________________________________, in advance on the first day of each calendar month during the term hereof. Upon execution of this Lease, Tenant shall pay to Landlord the first monthly installment of rent due hereunder. Rental for any period during the term hereof which is less than one month shall be the pro-rated portion of the monthly installment of rental due, based upon a 30 day month.

☒ If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted every 1 Lease Year Anniversary by 1% over the amount then payable hereunder. In the event renewal of this Lease is provided for in Section 2 hereof and effectively exercised by Tenant, the rental adjustments provided herein shall apply to the term of the Lease so renewed, or

☐ If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted every _________Lease Year Anniversary by the greater of: (i)______________ percent (________%) over the amount then payable hereunder, or, (ii) the percentage increase (but not any decrease) in the numerical index of the "Consumer Price Index for All Urban Consumers" (1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor ("**CPI**") for the immediately preceding twelve (12) month period over the amount then payable hereunder.

☐ If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted every _________________Lease Year Anniversary by $______________ over the amount then payable hereunder. In the event renewal of this Lease is provided for in Section 2 hereof and effectively exercised by Tenant, the rental adjustments provided herein shall apply to the term of the Lease so renewed.

☐ If this box is checked, the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted as provided on **Exhibit B.**

☐ If this box is checked, Tenant shall pay all rental to Landlord's Agent at the following address:

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**LATE CHARGES**

4. If Landlord fails to receive full rental payment within_____ten___________ days after it becomes due, Tenant shall pay Landlord, as additional rental, a late charge equal to two percent (2%) of the overdue amount or $460.00 whichever is greater, plus any actual bank fees incurred for dishonored payments. The parties agree that such a late charge represents a fair and reasonable estimate of the cost Landlord will incur by reason of such late payment.

**SECURITY DEPOSIT**

5. Upon the execution of this Lease, Tenant shall deposit with Landlord the sum of <u>$18 000.00</u>______________ as a security deposit which shall be held by Landlord as security for the full and faithful performance by Tenant of each and every term, covenant and condition of this Lease. The security deposit does not represent payment of and Tenant shall not presume application of same as payment of the last monthly installment of rental due under this Lease. Landlord shall have no obligation to segregate or otherwise account for the security deposit except as provided in this Section 5. If any of the rental or other charges or sums payable by Tenant shall be over-due and unpaid or should payments be made by Landlord on behalf of Tenant, or should Tenant fail to perf01m any of the terms of this Lease, then Landlord may, at its option, appropriate and apply the security deposit, or so much thereof as may be necessary, to compensate toward the payment of the rents, charges or other sums due from Tenant, or towards any loss, damage or expense sustained by Landlord resulting from such default on the part of the Tenant; and in such event Tenant upon demand shall restore the security deposit to the amount set forth above in this Section 5. In the event Tenant furnishes Landlord with proof that all utility bills and other bills of Tenant related to the Premises have been paid through the date of Lease termination, and performs all of Tenant's other obligations under this Lease, the security deposit shall be returned to Tenant within sixty (60) days after the date of the expiration or sooner termination of the term of this Lease and the surrender of the Premises by Tenant in compliance with the provisions of this Lease.

☐ If this box is checked, Agent shall hold the security deposit in trusts and shall be entitled to the interest, if any, thereon.

**UTILITY BILLS/SERVICE CONTRACTS**

6. Landlord and Tenant agree that utility bills and service contracts ("Service Obligations") for the Premises shall be paid by the party indicated below as to each Service Obligation. In each instance, the party undertaking responsibility for payment of a Service Obligation covenants that they will pay the applicable bills prior to delinquency. The responsibility to pay for a Service Obligation shall include all metering, hook-up fees or other miscellaneous charges associated with establishing, installing and maintaining such utility or contract in said party's name. Within thirty (30) days of the Lease Commencement Date, Tenant shall provide Landlord with a copy of any requested Tenant Service Obligation information.

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| **Service Obligation** | **Landlord** | **Tenant** | **Not Applicable** |
| Sewer/Septic | ☐ | ☒ | ☐ |
| Water | ☐ | ☒ | ☐ |
| Electric | ☐ | ☒ | ☐ |
| Gas | ☐ | ☒ | ☐ |
| Telephone | ☐ | ☒ | ☐ |
| HVAC (maintenance/service contract) | ☐ | ☒ | ☐ |
| Elevator (including phone line) | ☐ | ☒ | ☐ |
| Security Svstem | ☐ | ☒ | ☐ |
| Fiber Optic | ☐ | ☒ | ☐ |
| Janitor/Cleaning | ☐ | ☒ | ☐ |
| Trash/Dumpster | ☐ | ☒ | ☐ |
| Landscaping/Maintenance | ☐ | ☒ | ☐ |
| Sprinkler System (including phone line) | ☐ | ☒ | ☐ |
| Pest Control | ☐ | ☒ | ☐ |
| Snow/Ice Removal | ☐ | ☒ | ☐ |
| HOA dues | ☐ | ☒ | ☐ |
|  | ☐ | ☐ | ☐ |
|  | ☐ | ☐ | ☐ |
|  | ☐ | ☐ | ☐ |
|  | ☐ | ☐ | ☐ |
|  | ☐ | ☐ | ☐ |

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| Tenant Initials _____ Landlord Initials ____ ____ | **STANDARD FORM 592-T**<br>**Revised 7/2023**<br>© **7/2023** |

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Landlord shall not be liable for injury to Tenant's business or loss of income therefrom or for damage that may be sustained by the person, merchandise or personal property of Tenant, its employees, agents, invitees or contractors or any other person in or about the Premises, caused by or resulting from fire, steam, electricity, gas, water or rain, which may leak or flow from or into any part of the Premises, or from the breakage, leakage, obstruction or other defects of any utility installations, air conditioning system or other components of the Premises, except to the extent that such damage or loss is caused by Landlord's gross negligence or willful misconduct. Landlord represents and warrants that the heating, ventilation and air conditioning system(s) and utility installations existing as of the Lease Commencement Date shall be in good order and repair. Subject to the provisions of this Section 6, Landlord shall not be liable in damages or otherwise for any discontinuance, failure or interruption of service to the Premises of utilities or the heating, ventilation and air conditioning system(s) and Tenant shall have no right to terminate this Lease or withhold rental because of the same.

**RULES AND REGULATIONS**

7. ☐ If this box is checked, the rules and regulations attached hereto ("Rules and Regulations") are made a part of this Lease.

Tenant agrees to comply with all Rules and Regulations of Landlord in connection with the Premises which are in effect at the time of the execution of the Lease or which may be from time to time promulgated by Landlord in its reasonable discretion, provided notice of such new Rules and Regulations is given to Tenant in writing and the same are not in conflict with the tenns and conditions of this Lease.

**PERMITTED USES**

8. The permitted use of the Premises shall be: yacht/boat sales, brokerage, repair, maintenance, storage, rental; marina; offices; and other lawful, related usage___________________ ("Permitted Use"). The Premises shall be used and wholly occupied by Tenant solely for the purposes of conducting the Permitted Use, and the Premises shall not be used for any other purposes unless Tenant obtains Landlord's prior written approval of any change in use.

Landlord makes no representation or warranty regarding the suitability of the Premises for or the legality (under zoning or other applicable ordinances) of the Permitted Use for the Premises, provided however, that Landlord does represent that it has no contractual obligations with other parties which will materially interfere with or prohibit the Permitted Use of Tenant at the Premises. At Tenant's sole expense, Tenant shall procure, maintain and make available for Landlord's inspection from time to time any governmental license(s) or pe1mit(s) required for the proper and lawful conduct of Tenant's business in the Premises.

Tenant shall not cause or pe1mit any waste to occur in the Premises and shall not overload the floor, or any mechanical, electrical, plumbing or utility systems serving the Premises. Tenant shall keep the Premises, and every part thereof, in a clean and wholesome condition, free from any objectionable noises, loud music, objectionable odors or nuisances.

**TAXES AND INSURANCE**

<br> **(Note: The following box should only be checked if there are no boxes checked below in Section 9.)**<br>☐ If this box is checked, Tenant shall have no responsibility to reimburse Landlord for taxes or insurance.<br>

9. Landlord shall pay all taxes (including but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the Premises and shall procure and pay for such commercial general liability, broad form fire and extended and special perils insurance with respect to the Premises as Landlord in its reasonable discretion may deem appropriate. Tenant shall reimburse Landlord for all taxes and insurance as provided herein within fifteen (15) days after receipt of notice from Landlord as to the amount due. Tenant shall be solely responsible for insuring Tenant's personal and business property and for paying any taxes or governmental assessments levied thereon. Tenant shall reimburse Landlord for taxes and insurance during the te1111 of this Lease, and any extension or renewal thereof. If **boxes are checked below, the manner of reimbursement shall be as indicated:**

**Taxes**

☐ The amount by which all taxes (including but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the Premises for each tax year exceed all taxes on the Premises for the tax year_______ ;or

☒ All taxes (including but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the Premises for each tax year.

If one of the two boxes above is checked, then if the final Lease Year of the te1m fails to coincide with the tax year, any excess for the tax year during which the term ends shall be reduced by the pro rata part of such tax year beyond the Lease term. If such taxes for the year in which the Lease terminates are not ascertainable before payment of the last month's rental, then the amount of such taxes assessed against the Property for the previous tax year shall be used as a basis for determining the pro rata share, if any, to be paid by Tenant for that portion of the last Lease Year.

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If one of the two boxes above is checked, Tenant shall reimburse Landlord for taxes by paying to Landlord, beginning on the Rent Commencement Date and on the first day of each calendar month during the term hereof, an amount equal to one-twelfth (1/12) of the then cun-ent tax payments for the Premises. Upon receipt of bills, statements or other evidence of taxes due, Landlord shall pay or cause to be paid the taxes. If at any time the reimbursement payments by Tenant hereunder do not equal the amount of taxes paid by Landlord, Tenant shall upon demand pay to Landlord an amount equal to the deficiency or Landlord shall refund to Tenant any overpayment (as applicable) as documented by Landlord. Landlord shall have no obligation to segregate or otherwise account for the tax reimbursements paid hereunder except as provided in this Section 9.

**Insurance**

☐ the excess cost of commercial general liability, broad form fire and extended and special perils insurance with respect to the Premises over the cost of the first year of the Lease term for each subsequent year during the term of this Lease; or

☒ the cost of all commercial general liability, broad form fire and extended and special perils insurance with respect to the Premises.

If one of the two boxes above is checked, Tenant shall reimburse Landlord for insurance by paying to Landlord, beginning on the Rent Commencement Date and on the first day of each calendar month during the term hereof, an amount equal to one-twelfth (1/12) of the then current insurance premiums for the Premises. Upon receipt of bills, statements or other evidence of insurance premiums due, Landlord shall pay or cause to be paid the insurance premiums. If at any time the reimbursement payments by Tenant hereunder do not equal the amount of insurance premiums paid by Landlord, Tenant shall upon demand pay to Landlord an amount equal to the deficiency or Landlord shall refund to Tenant any overpayment (as applicable) as documented by Landlord. Landlord shall have no obligation to segregate or otherwise account for the insurance premium reimbursements paid hereunder except as provided in this Section 9.

Provided however, notwithstanding any provision of the foregoing, that in the event Tenant's use of the Premises results in an increase in the rate of insurance on the Property, Tenant shall pay to Landlord, upon demand and as additional rental, the amount of any such increase.

**INSURANCE; WAIYER; INDEMNITY**

10. (a) During the term of this Lease, Tenant shall maintain commercial general liability insurance coverage (occurrence coverage) with broad form contractual liability coverage and with coverage limits of not less than one million dollars ($1,000,000.00) combined single limit, per occun-ence, specifically including liquor liability insurance covering consumption of alcoholic beverages by customers of Tenant should Tenant choose to sell alcoholic beverages. Such policy shall insure Tenant's performance of the indemnity provisions of this Lease, but the amount of such insurance shall not limit Tenant's liability nor relieve Tenant of any obligation hereunder. All policies of insurance provided for herein shall name as "additional insureds" Landlord, Landlord's Agent, all mortgagees of Landlord and such other individuals or entities as Landlord may from time to time designate upon written notice to Tenant. Tenant shall provide to Landlord, at least thirty (30) days prior to expiration, certificates of insurance to evidence any renewal or additional insurance procured by Tenant. Tenant shall provide evidence of all insurance required under this Lease to Landlord prior to the Lease Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord (for itself and its insurer) waives any rights, including rights of subrogation, and Tenant (for itself and its insurer) waives any rights, including rights of subrogation, each may have against the other for compensation of any loss or damage occasioned to Landlord or Tenant arising from any risk generally covered by the "all risks" insurance required to be carried by Landlord and Tenant. The foregoing waivers of subrogation shall be operative only so long as available in the State of North Carolina. The foregoing waivers shall be effective whether or not the parties maintain the insurance required to be carried pursuant to this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided in Section l0(b), Tenant indemnifies Landlord for damages proximately caused by the negligence or wrongful conduct of Tenant and Tenant's employees, agents, invitees or contractors. Except as otherwise provided in Section 10(b), Landlord indemnifies Tenant for damages proximately caused by the negligence or wrongful conduct of Landlord and Landlord's employees, agents, invitees or contractors. The indemnity provisions in this Section 10 cover personal injury and property damage and shall bind the employees, agents, invitees or contractors of Landlord and Tenant (as the case may be). The indemnity obligations in this Section 10 shall survive the expiration or earlier termination of this Lease.

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| Tenant Initials _____ Landlord Initials ____ ____ | **STANDARD FORM 592-T**<br>**Revised 7/2023**<br>© **7/2023** |

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**REPAIRS BY LANDLORD**

11. Landlord agrees to keep in good repair the roof, foundation, structural supports and exterior walls of the buildings located on the Premises (exclusive of all glass and exclusive of all exterior doors) and, except as may be specifically allocated to Tenant in Section 12 herein, Landlord agrees to be responsible for capital replacements on the Premises; provided that Landlord shall not be responsible for repairs or capital replacements rendered necessary by the negligence or intentional wrongful acts of Tenant, its employees, agents, invitees or contractors. Tenant shall promptly report in writing to Landlord any defective condition known to it which Landlord is required to repair or replace and failure to report such conditions shall make Tenant responsible to Landlord for any liability incurred by Landlord by reason of such conditions.

**(Note: Should Landlord and Tenant need to further detail the allocation of responsibility hereunder, the Special Stipulations box at the end of the Lease should be checked and such allocation should be specified on an Exhibit B.)**

**REPAIRS BY TENANT**

12. (a) Tenant accepts the Premises in their present condition and as suited for the Permitted Use and Tenant's intended purposes. Tenant, throughout the initial term of this Lease, and any extension or renewal thereof, at its expense, shall maintain in good order and repair the Premises, (except those repairs expressly required to be made by Landlord hereunder), specifically including but not limited to any building and other improvements located thereon, all light bulb and ballast replacements, plumbing fixtures and systems repairs within the Premises and water heater repairs. Tenant further agrees to care for the grounds around the building, including the mowing of grass, care of shrubs and general landscaping. Tenant shall use only licensed contractors for repairs where such license is required. Landlord shall have the right to approve the contractor as to any repairs in excess of$_ N/A_.

☒ If this box is checked, Tenant, at its expense, shall maintain the heating, ventilation and air conditioning system(s) ("HVAC Systems") in good order and repair, including but not limited to replacement of parts, compressors, air handling units and heating units. Tenant shall be required to maintain a preventive maintenance contract for the HYAC Systems on te1ms and with a provider reasonably acceptable to Landlord, which contract shall call for at least semi-annual maintenance, inspection and repair of such HVAC Systems ("HVAC Contract"). Tenant shall provide a copy of the HYAC Contract to Landlord annually. Provided that:

(i) Tenant has kept the HYAC Contract in force, and, (ii) Tenant shall have obtained Landlord's prior written approval of the contractor and the repair or replacement expenses for the HYAC Systems, then, for any calendar year, Tenant shall be responsible for the cost of repairing or replacing the HYAC Systems (or any major component thereof) up to $<u> </u> per HVAC System with a maximum repair or replacement cost of $<u> </u>for all HVAC Systems ("HVAC Cap") in such year. Tenant shall provide Landlord copies of all records related to the servicing, maintenance, repair, and replacement of the HVAC Systems upon the occurrence of any service, maintenance, repair, or replacement of the HYAC Systems. Landlord shall be responsible for paying the repair ·cost or replacement cost of such HVAC System in excess of the HYAC Cap.

**☐** If this box is checked, Landlord, at its expense, shall maintain the heating, ventilation and air conditioning system(s) ("HVAC Systems") in good order and repair, including but not limited to replacement of parts, compressors, air handling units and heating units. Provided that, Tenant shall reimburse Landlord for the cost of repairing or replacing the HVAC Systems (or any major component thereof) an amount up to $<u> </u>per HVAC System with a maximum replacement cost of $<u> </u> for all HVAC Systems ("HVAC Cap") in such year. Landlord shall be responsible for paying the repair cost or replacement cost of such HYAC System in excess of the HYAC Cap. Tenant shall reimburse Landlord for the amount of the HVAC Cap payable hereunder upon the written request of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant, Tenant's employees, agents, invitees or contractors shall take no action which may void any manufacturers or installers warranty with relation to the Premises. Tenant shall indemnify and hold Landlord harmless from any liability, claim, demand or cause of action arising on account of Tenant's breach of the provisions of this Section 12.

**ALTERATIONS**

13. Tenant shall not make any alterations, additions, or improvements to the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Landlord, in connection with Landlord's consent to same, may designate any such alterations, additions, or improvements to the Premises as subject to removal upon the expiration or earlier termination of this Lease, in which case, upon Landlord's written notice to Tenant to remove same at the expiration or earlier termination of this Lease, Tenant shall do so and restore the Premises to the condition that existed prior to such alterations, additions, or improvements being made. Tenant shall promptly remove any alterations, additions, or improvements constructed in violation of this Section 13 upon Landlord's written request. All approved alterations, additions, and improvements will be accomplished in a good and workmanlike manner, in conformity with all applicable laws and regulations, and by a contractor approved by Landlord, free of any liens or encumbrances. Tenant has no authority to allow, will not permit, and will indemnify Landlord and hold it harmless from, any contractors', laborers', mechanics', or materialmen's liens, or any other similar liens filed against the Premises in connection with any alterations, additions, or improvements to the Premises.

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| Tenant Initials _____ Landlord Initials ____ ____ | **STANDARD FORM 592-T**<br>**Revised 7/2023**<br>© **7/2023** |

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**SURRENDERING THE PREMISES**

14. Tenant shall schedule its move date with Landlord, in writing, in advance of the expiration or earlier termination of this Lease. Tenant agrees to return the Premises to Landlord at the expiration or earlier termination of this Lease, broom clean and in as good condition and repair as on the Lease Commencement Date, natural wear and tear, damage by storm, fire, lightning, earthquake or other casualty alone excepted. By written notice to Tenant, Landlord may require Tenant to remove any alterations, additions or improvements at the expiration or earlier termination of this Lease (whether or not made with Landlord's consent and whether or not designated via Section 13 as subject to removal) and to restore the Premises to its prior condition as of the Lease Commencement Date, all at Tenant's expense. All alterations, additions and improvements which Landlord has not required Tenant to remove shall become Landlord's property and shall be surrendered to Landlord upon the termination of this Lease, except that Tenant may remove any of Tenant's personal property or trade fixtures which can be removed without material damage to the Premises. Tenant shall repair, at Tenant's expense, any damage to the Premises caused by the removal of any such personal property or trade fixtures.

**(Note: Should Landlord and Tenant need to further enumerate their intent/understanding as to the status of items or property as fixtures, trade fixtures, or personal property hereunder, the Special Stipulations box at the end of the Lease should be checked and such enumeration should be specified by listing same by category on an Exhibit B.)**

**DESTRUCTION OF OR DAMAGE TO PREMISES**

15. (a) If the Premises are totally destroyed by storm, fire, lightning, earthquake or other casualty, Landlord shall have the right to terminate this Lease on written notice to Tenant within thirty (30) days after such desh11ction and this Lease shall terminate as of the date of such destruction and rental shall be accounted for as between Landlord and Tenant as of that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Premises are damaged but not wholly destroyed by any such casualties or if the Landlord does not elect to terminate the Lease under Section 15(a) above, Landlord shall commence (or shall cause to be commenced) reconstruction of the Premises within one hundred twenty (120) days after such occurrence and prosecute the same diligently to completion, not to exceed two hundred seventy (270) days from the date upon which Landlord receives applicable permits and insurance proceeds. In the event Landlord shall fail to substantially complete reconstruction of the Premises within said two hundred seventy (270) day period, Tenant's sole remedy shall be to terminate this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of any casualty at the Premises during the last one (I) year of the Lease Tern1, Landlord and Tenant each shall have the option to terminate this Lease on written notice to the other of exercise thereof within sixty (60) days after such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event ofreconstmction of the Premises, Tenant shall continue the operation of its business in the Premises during any such period to the extent reasonably practicable from the standpoint of pmdent business management, and the obligation of Tenant to pay annual rental and any other sums due under this Lease shall remain in full force and effect during the period of reconstmction. The annual rental and other sums due under this Lease shall be abated proportionately with the degree to which Tenant's use of the Premises is impaired, commencing from the date of destmction and continuing during the period of such reconstmction. Tenant shall not be entitled to any compensation or damages from Landlord for loss of use of the whole or any part of the Premises, Tenant's personal property, or any inconvenience or annoyance occasioned by such damage, reconstmction or replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of the termination of this Lease under any of the provisions of this Section 15, both Landlord and Tenant shall be released from any liability or obligation under this Lease arising after the date of termination, except as otherwise provided for in this Lease.

**GOVERNMENT AL ORDERS**

16. Tenant, at its own expense, agrees to comply with: (a) any law, statute, ordinance, regulation, rnle, requirement, order, court decision or procedural requirement of any governmental or quasi-governmental authority having jurisdiction over the Premises, (b) the mies and regulations of any applicable governmental insurance authority or any similar body, relative to the Premises and Tenant's activities therein; (c) provisions of or mies enacted pursuant to any private use restrictions, as the same may be amended from time to time and (d) the Americans with Disabilities Act (42 U.S.C.S. §12101, et seq.) and the regulations and accessibility guidelines enacted pursuant thereto, as the same may be amended from time to time. Landlord and Tenant agree, however, that if in order to comply with such requirements the cost to Tenant shall exceed a sum equal to one (1) year's rent, then Tenant may terminate this Lease by giving written notice of termination to Landlord in accordance with the terms of this Lease, which termination shall become effective sixty

(60) days after receipt of such notice and which notice shall eliminate the necessity of compliance with such requirements, unless, within thirty (30) days of receiving such notice, Landlord agrees in writing to be responsible for such compliance, at its own expense, and commences compliance activity, in which case Tenant's notice given hereunder shall not terminate this Lease.

**CONDEMNATION**

17. (a) If the entire Premises shall be appropriated or taken under the power of eminent domain by any governmental or quasi governmental authority or under threat of and in lieu of condemnation (hereinafter, "taken" or "taking"), this Lease shall terminate as of the date of such taking, and Landlord and Tenant shall have no further liability or obligation arising under this Lease after such date, except as otherwise provided for in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If more than twenty-five percent (25%) of the floor area of any building of the Premises is taken, or if by reason of any taking, regardless of the amount so taken, the remainder of the Premises is not one undivided space or is rendered unusable for the Permitted Use, either Landlord or Tenant shall have the right to terminate this Lease as of the date Tenant is required to vacate the portion of the Premises taken, upon giving notice of such election within thirty (30) days after receipt by Tenant from Landlord of written notice that said Premises have been or will be so taken. In the event of such termination, both Landlord and Tenant shall be released from any liability or obligation under this Lease arising after the date of termination, except as otherwise provided for in this Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Landlord and Tenant, immediately after learning of any taking, shall give notice thereof to each other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If this Lease is not te1minated on account of a taking as provided herein above, then Tenant shall continue to occupy that portion of the Premises not taken and the patiies shall proceed as follows: (i) at Landlord's cost and expense and as soon as reasonably possible, Landlord shall restore (or shall cause to be restored) the Premises remaining to a complete unit of like quality and character as existed prior to such appropriation or taking, and (ii) the annual rent provided for in Section 3 and other sums due under the Lease shall be reduced on an equitable basis, taking into account the relative values of the portion taken as compared to the portion remaining. Tenant waives any statutory rights of termination that may arise because of any partial taking of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Landlord shall be entitled to the entire condemnation award for any taking of the Premises or any pati thereof. Tenant's right to receive any amounts separately awarded to Tenant directly from the condemning authority for the taking of its merchandise, personal property, relocation expenses and/or interests in other than the real propetiy taken shall not be affected in any manner by the provisions of this Section 17, provided Tenant's award does not reduce or affect Landlord's award and provided further, Tenant shall have no claim for the loss of its leasehold estate.

**ASSIGNMENT AND SUBLETTING**

18. Tenant shall, without prior notice or written consent of Landlord, have the right to assign this Lease to an affiliated entity of which Tenant or Jason Ruegg is an interest owner or shareholder, a parent company, a successor that purchases all or substantially all of Tenant's assets, or an entity into which Tenant merges or consolidates. Other than aforesaid, Tenant shall not assign this Lease or any interest hereunder or sublet the Premises or any part thereof, or permit the use of the Premises by any party other than the Tenant and Tenant's affiliated entities, without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed. Tenant shall pay to Landlord, concurrently with any request for consent to assignment or sublet, a non refundable fee of $500.00_ as payment to Landlord for its review and processing of the request. In addition, Tenant shall pay to Landlord any legal fees and expenses incmTed by Landlord in connection with the proposed assignment or sublet (for which prior written consent is required), to the extent such amounts exceed $500.00, with said payment by Tenant not to exceed $500.00_____________. Consent to any assignment or sublease shall not impair this provision and all later assignments or subleases shall be made likewise only on the prior written consent of Landlord. No sublease or assignment by Tenant shall relieve Tenant of any liability hereunder unless agreed in writing by Landlord.

**EVENTS OF DEFAULT**

19. The happening of any one or more of the following events (hereinafter any one of which may be referred to as an "Event of Default") during the term of this Lease, or any renewal or extension thereof, shall constitute a breach of this Lease on the part of the Tenant: (a) Tenant fails to pay when due the rental or any other monetary obligation as provided for herein; (b) Tenant abandons or vacates the Premises; (c) Tenant fails to comply with or abide by and perform any non-monetaty obligation imposed upon Tenant under this Lease within thirty (30) days after written notice of such breach; (d) Tenant is adjudicated bankrupt; (e) A permanent receiver is appointed for Tenant's property and such receiver is not removed within sixty (60) days after written notice from Landlord to Tenant to obtain such removal; (f) Tenant, either voluntarily or involuntarily, takes advantage of any debt or relief proceedings under any present or future law, whereby the rent or any part thereof is, or is proposed to be, reduced or payment thereof deferred and such proceeding is not dismissed within sixty (60) days of the filing thereof; (g) Tenant makes an assignment for benefit of creditors; or (h) Tenant's effects are levied upon or attached under process against Tenant, which is not satisfied or dissolved within thirty (30) days after written notice from Landlord to Tenant to obtain satisfaction thereof.

**REMEDIES UPON DEFAULT**

20. Upon the occurrence of Event of Default, Landlord may pursue any one or more of the following remedies separately or concurrently, without prejudice to any other remedy herein provided or provided by law: (a) Landlord may terminate this Lease by giving written notice to Tenant and upon such termination shall be entitled to recover from Tenant damages as may be permitted under applicable law; or (b) Landlord may terminate this Lease by giving written notice to Tenant and, upon such termination, shall be entitled to recover from the Tenant damages in an amount equal to all rental which is due and all rental which would otherwise have become due throughout the remaining tern1 of this Lease, or any renewal or extension thereof (as if this Lease had not been terminated); or (c) Landlord, as Tenant's agent, without terminating this Lease, may enter upon and rent the Premises, in whole or in part, at the best price obtainable by reasonable effort, without advertisement and by private negotiations and for any term Landlord deems proper, with Tenant being liable to Landlord for the deficiency, if any, between Tenant's rent hereunder and the price obtained by Landlord on reletting, provided however, that Landlord shall not be considered to be under any duty by reason of this provision to take any action to mitigate damages by reason of Tenant's default and expressly shall have no duty to mitigate Tenant's damages. No termination of this Lease prior to the normal ending thereof, by lapse of time or otherwise, shall affect Landlord's right to collect rent for the period prior to termination thereof. Tenant acknowledges and understands that Landlord's acceptance of partial rental will not waive Tenant's breach of this Lease or limit Landlord's rights against Tenant hereunder or Landlord's right to evict Tenant through a summary ejectment proceeding, whether filed before or after Landlord's acceptance of any such partial rental.

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**EXTERIOR SIGNS**

21. Tenant shall place no signs upon the outside walls, doors or roof of the Premises, except with the express written consent of the Landlord in Landlord's sole discretion. Any consent given by Landlord shall expressly not be a representation of or warranty of any legal entitlement to signage at the Premises. Any and all signs placed on the Premises by Tenant shall be maintained in compliance with governmental rules and regulations governing such signs and Tenant shall be responsible to Landlord for any damage caused by installation, use or maintenance of said signs, and all damage incident to removal thereof.

**LANDLORD'S ENTRY OF PREMISES**

22. Landlord may advertise the Premises "For Rent" 90 days before the termination of this Lease. Landlord may enter the Premises upon prior notice at reasonable hours to exhibit same to prospective purchasers or tenants, to make repairs required of Landlord under the terms hereof, for reasonable business purposes and otherwise as may be agreed by Landlord and Tenant. Landlord may enter the Premises at any time without prior notice, in the event of an emergency or to make emergency repairs to the Premises. Upon request of Landlord, Tenant shall provide Landlord with a functioning key to the Premises and shall replace such key if the locks to the Premises are changed.

**QUIET ENJOYMENT**

23. So long as Tenant observes and performs the covenants and agreements contained herein, it shall at all times during the Lease term peacefully and quietly have and enjoy possession of the Premises, subject to the terms hereof.

**HOLDING OVER**

24. If Tenant remains in possession of the Premises after expiration of the term hereof, Tenant shall be a tenant at sufferance and there shall be no renewal of this Lease by operation of law. In such event, commencing on the date following the date of expiration of the term, the monthly rental payable under Section 3 above shall for each month, or fraction thereof during which Tenant so remains in possession of the Premises, be **twice** the monthly rental otherwise payable under Section 3 above.

**ENVIRONMENT AL LAWS**

25. (a) Tenant covenants that with respect to any Hazardous Materials (as defined below) it will comply with any and all federal, state or local laws, ordinances, rules, decrees, orders, regulations or court decisions relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about the Premises or soil and ground water conditions, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource Conservation and Recovery Act, the Hazardous Materials Transportation Act, any other legal requirement concerning hazardous or toxic substances, and any amendments to the foregoing (collectively, all such matters being "Hazardous Materials Requirements"). Tenant shall remove from the Premises, all Hazardous Materials that were placed on the Premises by Tenant or Tenant's employees, agents, invitees or contractors, either after their use by Tenant or upon the expiration or earlier termination of this Lease, in compliance with all Hazardous Materials Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant shall be responsible for obtaining all necessa1y permits in connection with its use, storage and disposal of Hazardous Materials, and shall develop and maintain, and where necessa1y file with the appropriate authorities, all reports, receipts, manifest, filings, lists and invoices covering those Hazardous Materials and Tenant shall provide Landlord with copies of all such items upon request. Tenant shall provide within five (5) days after receipt thereof, copies of all notices, orders, claims or other correspondence from any federal, state or local government or agency alleging any violation of any Hazardous Materials Requirements by Tenant, or related in any manner to Hazardous Materials. In addition, Tenant shall provide Landlord with copies of all responses to such correspondence at the time of the response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tenant hereby indemnifies and holds hatmless Landlord, its successors and assigns from and against any and all losses, liabilities, damages, injuries, penalties, fines, costs, expenses and claims of any and every kind whatsoever (including attorney's fees and costs) paid, incurred or suffered by, or asserted against Landlord as a result of any claim, demand or judicial or administrative action by any person or entity (including governmental or private entities) for, with respect to, or as a direct or indirect result of, the presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release from the Premises of any Hazardous Materials caused by Tenant or Tenant's employees, agents, invitees or contractors. This indemnity shall also apply to any release of Hazardous Materials caused by a fire or other casualty to the Premises if such Hazardous Materials were stored on the Premises by Tenant, its agents, employees, invitees or successors in interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Lease, "Hazardous Materials" means any chemical, compound, material, substance or other matter that: (i) is defined as a hazardous substance, hazardous material or waste, or toxic substance pursuant to any Hazardous Materials Requirements, (ii) is regulated, controlled or governed by any Hazardous Materials Requirements, (iii) is petroleum or a petroleum product, or (iv) is asbestos, formaldehyde, a radioactive material, drug, bacteria, virus, or other injurious or potentially injurious material (by itself or in combination with other materials).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The warranties and indemnities contained in this Section 25 shall survive the te1mination of this Lease.

**SUBORDINATION; ATTORNMENT; ESTOPPEL**

26. (a) This Lease and all of Tenant's rights hereunder are and shall be subject and subordinate to all currently existing and future mortgages affecting the Premises. Within ten (10) days after the receipt of a written request from Landlord or any Landlord mortgagee, Tenant shall confirm such subordination by executing and delivering Landlord and Landlord's mortgagee a recordable subordination agreement and such other documents as may be reasonably requested, in form and content satisfactory to Landlord and Landlord's mortgagee. Provided, however, as a condition to Tenant's obligation to execute and deliver any such subordination agreement, the applicable mortgagee must agree that mo1igagee shall not unilaterally, materially alter this Lease and this Lease shall not be divested by foreclosure or other default proceedings thereunder so long as Tenant shall not be in default under the terms of this Lease beyond any applicable cure period set forth herein. Tenant acknowledges that any Landlord mortgagee has the right to subordinate at any time its interest in this Lease and the leasehold estate to that of Tenant, without Tenant's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Landlord sells, transfers, or conveys its interest in the Premises or this Lease, or if the same is foreclosed judicially or nonjudicially, or otherwise acquired, by a Landlord mortgagee, upon the request of Landlord or Landlord's successor, Tenant shall attorn to said successor, provided said successor accepts the Premises subject to this Lease. Tenant shall, upon the request of Landlord or Landlord's successor, execute an attornment agreement confirming the same, in form and substance acceptable to Landlord or Landlord's successor and Landlord shall thereupon be released and discharged from all its covenants and obligations under this Lease, except those obligations that have accrued prior to such sale, transfer or conveyance; and Tenant agrees to look solely to the successor in interest of Landlord for the performance of those covenants accruing after such sale, transfer or conveyance. Such agreement shall provide, among other things, that said successor shall not be bound by (a) any prepayment of more than one (I) month's rental (except the Security Deposit) or (b) any material amendment of this Lease made after the later of the Lease Commencement Date or the date that such successor's lien or interest first arose, unless said successor shall have consented to such amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within ten (10) days after request from Landlord, Tenant shall execute and deliver to Landlord an estoppel certificate (to be prepared by Landlord and delivered to Tenant) with appropriate facts then in existence concerning the status of this Lease and Tenant's occupancy, and with any exceptions thereto noted in writing by Tenant. Tenant's failure to execute and deliver the Estoppel Certificate within said ten (10) day period shall be deemed to make conclusive and binding upon Tenant in favor of Landlord and any potential mortgagee or transferee the statements contained in such estoppel certificate without exception.

**ABANDONMENT**

27. Tenant shall not abandon the Premises at any time during the Lease term. If Tenant shall abandon the Premises or be dispossessed by process of law, any personal property belonging to Tenant and left on the Premises, at the option of Landlord, shall be deemed abandoned, and available to Landlord to use or sell to offset any rent due or any expenses incurred by removing same and restoring the Premises.

**NOTICES**

28. All notices required or permitted under this Lease shall be in writing and shall be personally delivered or sent by U.S. certified mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered or sent to the address shown at the beginning of this Lease, except that upon Tenant taking possession of the Premises, then the Premises shall be Tenant's address for such purposes. Notices to Landlord shall be delivered or sent to the address shown at the beginning of this Lease and notices to Agent, if any, shall be delivered or sent to the address set fo1ih in Section 3 hereof. All notices shall be effective upon delivery. Any party may change its notice address upon written notice to the other parties, given as provided herein.

**BROKERS**

29. Except as expressly provided herein, Tenant and Landlord agree to indemnify and hold each other harmless from any and all claims of brokers, consultants or real estate agents by, through or under the indemnifying party for fees or commissions arising out of the lease of the Property to Tenant.

Tenant and Landlord represent and warrant to each other that: (i) except as to the brokers designated below ("Brokers"), they have not employed nor engaged any brokers, consultants or real estate agents to be involved in this transaction and (ii) that the compensation of the Brokers is established by and shall be governed by separate agreements entered into as amongst the Brokers, the Tenant and/or the Landlord.

_____________________________________________________________("Listing Agency"),

<u> </u>_____________________________________("Listing Agent" - License#<u> </u>_________________)

Acting as: **☐** Landlord's Agent; **☐** Dual Agent

and<u> </u>_________________________________________________________("Leasing Agency"),

___________________________________________("Leasing Agent"- License#___________)

Acting as: ☐ Tenant's Agent; **☐** Landlord's (Sub)Agent; **☐** Dual Agent

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**GENERAL TERMS**

30. (a) "Landlord" as used in this Lease shall include the undersigned, its heirs, representatives, assigns and successors in title to the Premises. "Agent" as used in this Lease shall mean the party designated as same in Section 3, its heirs, representatives, assigns and successors. "Tenant" shall include the undersigned and its heirs, representatives, assigns and successors, and if this Lease shall be validly assigned or sublet, shall include also Tenant's assignees or sublessees as to the Premises covered by such assignment or sublease. "Landlord", "Tenant", and "Agent" include male and female, singular and plural, corporation, partnership or individual, as may fit the particular parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No failure of Landlord to exercise any power given Landlord hereunder or to insist upon strict compliance by Tenant of its obligations hereunder and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of Landlord's right to demand exact compliance with the terms hereof. All rights, powers and privileges conferred hereunder upon parties hereto shall be cumulative and not restrictive of those given by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Time is of the essence in this Lease.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Lease may be executed in one or more counterparts, which taken together, shall constitute one and the same original document. Copies of original signature pages of this Lease may be exchanged via facsimile or e-mail, and any such copies shall constitute originals. This Lease constitutes the sole and entire agreement among the parties hereto and no modification of this Lease shall be binding unless in writing and signed by all parties hereto. The invalidity of one or more provisions of this Lease shall not affect the validity of any other provisions hereof and this Lease shall be construed and enforced as if such invalid provisions were not included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each signatory to this Lease represents and warrants that he or she has full authority to sign this Lease and such instruments as may be necessary to effectuate any transaction contemplated by this Lease on behalf of the party for whom he or she signs and that his or her signature binds such party. The parties acknowledge and agree that: (i) the initials lines at the bottom of each page of this Lease are merely evidence of their having reviewed the terms of each page, and·(ii) the complete execution of such initials lines shall not be a condition of the effectiveness of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon request by either Landlord or Tenant, the parties hereto shall execute a short form lease (memorandum of lease) in recordable form, setting forth such provisions hereof (other than the amount of annual rental and other sums due) as either party may wish to incorporate. The cost of recording such memorandum of lease shall be borne by the party requesting execution of same. The NC REALTOR Memorandum of Lease (Form 596-T) or an attorney-drafted memorandum of lease may be used for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If legal proceedings are instituted to enforce any provision of this Lease, the prevailing party in the proceeding shall be entitled to recover from the non-prevailing party reasonable attorneys fees and court costs incurred in connection with the proceeding.

**SPECIAL STIPULATIONS**

&nbsp;&nbsp;Note: Under North Carolina law, real estate agents are not permitted to draft lease provisions

☐ If this box is checked, additional terms of this Lease are set forth on **Exhibit B** attached hereto and incorporated herein by reference.

☐ If this box is checked, improvements to the Premises to be provided by Landlord are set forth on **Exhibit C** attached hereto and incorporated herein by reference.

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THIS DOCUMENT IS A LEGAL DOCUMENT. EXECUTION OF THIS DOCUMENT HAS LEGAL CONSEQUENCES THAT COULD BE ENFORCEABLE IN A COURT OF LAW. THE NORTH CAROLINA ASSOCIATION OF REALTORS® MAKES NO REPRESENTATIONS CONCERNING THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS DOCUMENT OR THE TRANSACTION TO WHICH IT RELATES AND RECOMMENDS THAT YOU CONSULT YOUR ATTORNEY.

**IN WITNESS WHEREOF, the parties hereto have hereunto caused this Lease to be duly executed.**

**LANDLORD:**

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| | | |
|:---|:---|:---|
| **Individual** | **Business Entity** | **Business Entity** |
|  | Jel Wade Industrial, LLC | Jel Wade Industrial, LLC |
| Date: | (Name of Firm) | (Name of Firm) |
| Date: | By: | /s/ Richard M. Lee, Jr. |
|  | Title: | Manager |
|  | Date: |  |
| **TENANT:** |  |  |
| **Individual** | **Business Entity** | **Business Entity** |
|  | Off the Hook Yacht Sales NC, LLC | Off the Hook Yacht Sales NC, LLC |
| Date: | (Name of Firm) | (Name of Firm) |
| Date: | By: | /s/ Jason Ruegg |
|  | Title: | Manager |
|  | Date: | August 21, 2024 |

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![](ex10-1_014.jpg)

**GUARANTY ADDENDUM**

Tenant: <u>Off the Hook Yacht Sales NC, LLC </u> <br> Landlord: <u>Jel Wade Industrial, LLC</u> <br> Premises: <u>1701 J.E.L. Wade Drive, Wilmington, NC 28401, including travel lift; excluding property leased by Jeff Brown Yachts, Inc. </u>

pursuant to written lease in effect on the date of execution of this Addendum.

Commencement Date of Lease:<u> </u> Initial Monthly Rent: <u>$18,000.00</u>

This Addendum is attached to and made a part of the following lease between Landlord and Tenant for the Premises: ☒ Commercial Lease Agreement-Single-Tenant Facility (Form 592-T) ☐ Commercial Lease Agreement-Multi-Tenant Facility (Form 593-T) ("Lease") ☐ Other *(identify attorney-drafted lease):<u> </u>*

 

In consideration for Landlord leasing the Property to Tenant, the undersigned Guarantor(s) ("Guarantor") guarantee the performance of Tenant under the Lease. Guarantor acknowledges and understands that Landlord has relied upon Guarantor agreeing to sign this Guaranty as a condition of Landlord agreeing to enter into the Lease with Tenant.

1. **Guaranty.** If Tenant fails to make any payment required under the Lease, Guarantor will, upon demand, make such payment to Landlord or Landlord's agent. Payments under the Lease include but are not limited to rent, late charges, returned check charges, summary ejectment fees, court costs, attorney's fees, fines, utility charges, maintenance charges, repair charges for property damage, taxes, insurance, common areas and property operating expenses, and other costs or charges specified in the Lease.

2. **Enforcement of Guaranty.** Landlord is not obligated to first attempt recovery from Tenant for any breach of the Lease, non-payment of rent or other financial obligations of Tenant, and may immediately seek enforcement of this Guaranty. Any suits may be brought by the Landlord against the Tenant and Guarantor, either jointly or severally. THE GUARANTOR EXPRESSLY WAIVES ANY RIGHT UNDER N.C. GENERAL STATUTES SECTION 26-7 TO REQUIRE LANDLORD TO FIRST SEEK RECOVERY AGAINST THE TENANT.

3. **Duration of Guaranty.** THE GUARANTOR'S OBLIGATIONS UNDER THIS GUARANTY APPLY TO TENANT'S OBLIGATIONS DURING THE INITIAL TERM OF THE LEASE AND DURING ANY EXTENSION OR RENEW AL OF THE LEASE, INCLUDING ANY RENT INCREASES OR OTHER MODIFICATIONS DURING THE INITIAL TERM OR ANY EXTENSION OR RENEW AL.

4. **Joint and Several Liability.** If there is more than one Guarantor, they are jointly and severally liable for all provisions of this Guaranty.

5. **Governing law** The parties agree that this Guaranty shall be governed by and construed in accordance with the laws of the State of North Carolina, any legal action may only instituted in the county were the .Premises is located.

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| | | |
|:---|:---|:---|
| **Guarantor:** | **Date:** | 9-4-24 |

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Printed Name: <u>Jason Ruegg </u>

Address: <u>1701 J.E.L. Wade Drive, Wilmington, NC 28401</u>

Contact information:         <br> Home Work Cell Email

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|:---|:---|
| **Guarantor:** | **Date:** |

---

Printed Name:

Address:

Contact information:     <br> Home Work Cell Email

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| ![](ex10-1_016.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**North Carolina Association of REALORS®, Inc.** | ![](ex10-1_015.jpg) | **STANDARD FORM 592-T**<br>**Revised 7/2023**<br>© **7/2023** |

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## Exhibit 10.2

**Exhibit 10.2**

**LEASE MODIFICATION AGREEMENT**

THIS LEASE MODIFICATION AGREEMENT ("Agreement") is made and entered into effective the 10th day of January 2025, by Jel Wade Warehouse, LLC, a North Carolina limited liability company, ("Landlord") and Off the Hook Yacht Sales, LLC, a NC limited liability company ("Tenant").

**<u>RECITALS</u>**

WHEREAS Landlord and Tenant entered into a Lease Agreement dated September 4, 2024, (as amended and/or extended and/or assigned, the "Lease") with respect to premises located at 1701 N. 5<sup>th</sup> Avenue, Ste A, Wilmington, North Carolina in the Building (the "Leased Premises").

The current term of the Lease expires on March 31, 2025, and the Lease provides for month-to-month occupancy after the expiration of the Lease.

The Landlord and the Tenant have agreed to extend the Term of the Lease until March 31, 2030.

NOW, THEREFORE, in consideration of the promises set forth herein and other valuable consideration, the sufficiency of which is hereby acknowledged, Landlord and Tenant agree that Section 2 and Section 5 (c) of the Lease are modified as follows:

1. Section
 2 - TERM: The Term of the Lease shall be extended until March 31, 2030.

2. Section
 5(c) - RENT: <u>Base Rent Adjustments</u> - The monthly Base Rent for each lease year beginning
 April 1, 2025 and thereafter, including renewals or extensions, shall be increased over the
 monthly Base Rent payable in the previous lease year by the greater of (1) THREE (3.0%) PERCENT
 or (2) the percentage increase in the Consumer Price Index (Urban Wage Earners and Clerical
 Workers, (CURRENT SERIES), as published by the U. S. Bureau of Labor Statistics) (the "Index")
 over the previous lease year. Such increase shall be computed by comparing the Index most
 recently available on the date thirty (30) days prior to the beginning of said lease year
 to the Index most recently available on the date thirty (30) days prior to the beginning
 of the previous lease year. If at any time, during the Term hereof, the Index ceases to be
 published, then a comparable index selected by Landlord shall be substituted, therefore.
 Landlord shall notify Tenant in writing of the new Base Rent at least thirty (30) days prior
 to the beginning of each lease year; provided, however, that failure of Landlord to give
 such notice shall not affect Tenant's obligation to pay the new Base Rent hereunder.

3. <u>Confidentiality</u>:
 Tenant covenants and agrees that the contents of this Agreement are strictly confidential
 between Landlord and Tenant and its employees, and that Tenant shall not disclose the contents
 hereof to any other person, firm or entity (except for Tenant's attorneys, insurers,
 and accountants).

4. <u>Ratification</u>.
 Except as hereinabove expressly modified, all other terms and conditions of the Lease shall
 remain in full force and effect and the same are hereby ratified, confirmed, and approved
 by the parties hereto. Defined terms in this Agreement shall have the meaning given them
 in the Lease.

5. <u>Binding Agreement</u>. This Agreement shall inure to the benefit of and be binding upon the respective
 heirs, assigns, legal representatives, and successors in interest of the respective parties
 hereto. Each party to this Agreement has had the benefit of or the opportunity to be represented
 by counsel, each party contributed materially to the negotiation and drafting of this Agreement,
 and accordingly, this Agreement shall not be construed for or against either party as the
 preparer of this Agreement.

7. <u>Execution</u>.
 This Agreement may be executed in multiple counterparts, all of which when taken together
 shall constitute one and the same agreement. Facsimile transmitted copies of executed originals
 shall be deemed sufficient for all purposes.

WHEREFORE, the parties hereto have executed this Agreement as of the date first above written.

---

| | |
|:---|:---|
| **LANDLORD:** | **LANDLORD:** |
| Jel Wade Warehouse, LLC | Jel Wade Warehouse, LLC |
| Signed: | */s/ Rich Lee* |
| Name: | Rich Lee |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **TENANT:** | **TENANT:** |
| Off the Hook Yacht Sales, LLC | Off the Hook Yacht Sales, LLC |
| Signed: | */s/ Jason Ruegg* |
| Name: | Jason Ruegg |
| Title: | Manager |

---

## Exhibit 10.3

**Exhibit 10.3**

**<u>OFF THE HOOK YS, INC</u>**

**EMPLOYMENT AGREEMENT - EXEMPT EMPLOYEE**

**THIS EMPLOYMENT AGREEMENT** (the "**Agreement**") is entered into on <u>May 9</u>, 2025, (the "**Execution Date**"), by and between Off The Hook YS, Inc. a Nevada corporation, whose principal place of business is 1701 Jel Wade Dr, Wilmington, NC 28401 (the "**Company**", or "**Employer**") and <u>Jason Ruegg</u>, an individual whose mailing address is <u>[ ]</u> (the "**Employee**"). This Agreement shall become effective only upon the completion of the Company's Initial Public Offering (IPO) (the "**Effective Date**"). No obligations under this Agreement, including the commencement of employment, shall arise until the Effective Date.

**<u>RECITALS</u>**

**WHEREAS**, the Company desires to employ Employee and Employee desires to be employed by the Company on the terms and subject to the conditions set forth in this Agreement.

**ACCORDINGLY**, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are acknowledged, the Company and Employee agree as follows:

**<u>TERMS</u>**

1. **<u>Employment</u>**. The Company agrees to employ the Employee, and the Employee agrees to be employed by the Company, on the terms and subject to the conditions set forth in this Agreement, commencing on the Effective Date.

2. **<u>Term</u>**. The term of Employee's employment under this Agreement shall commence on the Effective Date and shall continue for a period of three (3) years, automatically renewing for successive one (1) year periods unless terminated in accordance with this Agreement (the "**Term**").

3. <u>Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Position</u>** .
 During the Term, Employee will serve as <u>President</u> of the Company. Subject to the direction
 of the <u>Board</u> of the Company. Employee will perform all duties commensurate with his
 position and such other tasks as may be assigned to him by the Board of Directors of the
 Company (the "**Board** "). If requested by the Company, Employee will serve
 as an officer or director of any subsidiary of the Company, without additional compensation,
 provided, however, that if Employee is asked to serve as a director of any subsidiary of
 the Company, Employee may refuse to accept, or resign from, such appointment without causing
 a breach of this Agreement by Employee. If asked to serve as an officer or director of a
 subsidiary of the Company, Employee will be provided those officer and director indemnifications
 provided to other officers and directors of the Company and any such subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Full Time and Attention</u>** . During the Term, Employee will devote his/her full business time
 and energies to the business and affairs of the Company and its subsidiaries and will use
 his/her best efforts, skills and abilities solely to promote the interests of the Company
 and its subsidiaries and to diligently and competently perform his duties, all in a manner
 in compliance with all applicable laws and regulations and in accordance with applicable
 policies and procedures adopted or amended from time to time by the Company, including, without
 limitation, the Company Employee Handbook, a copy of which Employee acknowledges having received.
 Notwithstanding the foregoing, Employee may serve as a director on up to two and not more
 than two boards of directors of other companies, so long as such service does not interfere
 with Employee's performance of Employee's duties to the Company. Employee's
 primary place of employment shall be at the Company's primary place of business in <u>Wilmington, NC</u>; however, Employee agrees and acknowledges that a material part of
 the time devoted to his duties and position hereunder will require that Employee travel from
 time to time on behalf of the Company.

4. <u>Compensation and Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Salary</u>** .
 During the Term of this Agreement, the Employee shall be paid an initial base salary (the
 "Base Salary") paid twice monthly, at an annualized rate of <u>Five Hundred Thousand Dollars ($500,000</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Performance Bonus</u>** . The amount of the annual bonus payable to Employee for a year (if any) shall
 be based upon the targets and performance goals set forth in Appendix A to this Agreement
 (the "**Bonus Targets** "), as may be amended from time to time by the Compensation
 Committee and the Board of Directors, in their sole discretion. The Compensation Committee
 and the Board of Directors, in their sole discretion, may also award additional compensation
 to the Employee for outstanding performance or achievement. Any bonuses payable pursuant
 to this Section 4(b) shall be referred to herein as Performance Bonuses. If the Employee's
 employment terminates prior to December 31 of any year, the Employee shall be entitled to
 a pro-rata bonus for such partial calendar year, as determined by the Compensation Committee
 in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Pay Increase</u>** . The Employee's base salary may be increased at any time, at the Company's
 sole discretion, based on the Employee's performance, contributions to the Company,
 and other factors deemed relevant by the Employer. Any such increase shall be communicated
 to the Employee in writing and shall take effect on a date determined by the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Benefits</u>** .
 During the Term, Employee will be entitled to participate in or benefit from, in accordance
 with the eligibility and other provisions thereof, such life, health, medical, accident,
 dental and disability insurance, a 401(k) plan, and an Employee Stock Ownership Plan. The
 Company retains the right to terminate or amend any such plans from time to time in its sole
 discretion. For more information, refer to the Off The Hook YS Employee Handbook.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Cost of Living Adjustment.</u>** The Employee's base salary shall be subject to an annual
 Cost of Living Adjustment (the "**COLA**") based on the Consumer Price Index
 (CPI) for All Urban Consumers (CPI-U) for the previous year. The COLA shall be calculated
 as a percentage increase and shall take effect on the first day of each calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Stock Options or Restricted Stock.</u>** Under this Agreement, the Employee's compensation
 may include stock options or restricted stock to be issued in accordance with the Company's
 ESOP stock incentive plan. Specific details about the issuance of these equity awards, such
 as the grant date, vesting schedule, and strike price. Employee shall refer to this appendix
 and the 2025 Equity Incentive Plan for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Vacation.</u>** The Company offers its employees two different time-off plans: Paid Time Off ()"**PTO** ")
 and Responsible Time Off ()"**RTO** "). The RTO plan is offered to benefit-eligible
 exempt employees in the United States, while the accrued PTO plan is offered to non-exempt
 (hourly) employees in the United States. Please refer to the Off The Hook YS Employee Handbook
 for specific details on each plan, including eligibility criteria and accrual rates. We are
 committed to providing our employees with comprehensive and competitive benefits packages,
 including generous time-off policies, to support their well-being and work-life balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Holidays.</u>** The Company shall provide the Employee with a certain number of paid holidays each calendar
 year, as determined by the U.S. federal holidays designated by Congress. While the specific
 observance dates may change from year to year, all Federal bank and market holidays shall
 be observed by the Company as paid vacation days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Business Expense Reimbursement</u>** . The Company will reimburse Employee, in accordance with the
 Company's expense reimbursement policies as may be established from time to time by
 the Company, for all pre-approved and reasonable out-of-pocket travel and other expenses
 actually incurred or paid by Employee during the Term in the performance of his/her services
 under this Agreement, upon presentation of expense statements or vouchers or such other supporting
 information as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Cell Phone Usage Reimbursement.</u>** The Employee will receive a $125 monthly stipend for business
 use of their personal cell phone. The stipend doesn't cover the device cost or the
 full monthly bill. To qualify, the Employee must agree to the Bring Your Own Device Policy.
 This policy covers data protection, security, and acceptable use. By accepting the stipend,
 the Employee agrees to comply with the policy and use their phone in line with company standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Withholding</u>** .
 All payments under this Agreement will be subject to applicable taxes and required withholdings.

5. **<u>Background.</u>** Off The Hook YS understands the importance of creating a safe and secure work environment for all employees. As such, the Company reserves the right to conduct background investigations and/or reference checks on all potential employees. Please note that any job offer extended by the Company is contingent upon the successful completion of such checks.

6. **<u>Policies.</u>** Off The Hook YS employees are expected to follow the company's rules and standards to create a safe and respectful workplace for everyone. To ensure compliance with these standards, employees will receive a copy of the Off The Hook YS Employee Handbook, along with other relevant company policies, such as Regulation FD and Insider Trading Policies. The employee acknowledges that the terms of this contract are subject to and incorporates the policies and procedures set forth in the company's employee handbook and any other applicable policies, which the employee agrees to review and abide by. The contract will not become effective until the employee signs and acknowledges receipt of the employee handbook and any other applicable policies.

7. **<u>Representations of Employee</u>**. Employee represents and warrants that he/she is not, (i) a party to any enforceable employment agreement or other arrangement, whether written or oral, with any past employer, that would prevent or restrict Employee's employment with the Company; (ii) a party to or bound by any agreement, obligation or commitment, or subject to any restriction, including, but not limited to, confidentiality agreements, restrictive covenants or non-compete and non-solicitation covenants, except for agreements with the Company or its affiliates; or (iii) involved with any professional endeavors which in the future may possibly adversely affect or interfere with the business of the Company, the full performance by Employee of his duties under this Agreement or the exercise of his best efforts hereunder.

8. **<u>Intellectual Property</u>**. Any and all material eligible for copyright or trademark protection and any and all ideas and inventions ("**Intellectual Property**"), whether or not patentable, in any such case solely or jointly made, developed, conceived or reduced to practice by Employee (whether at the request or suggestion of any officer or employee of the Company or otherwise, whether alone or in conjunction with others, and whether during regular hours of work or otherwise) during the Term which arise from the fulfillment of Employee s duties hereunder and which may be directly or indirectly useful in the business of the Company will be promptly and fully disclosed in writing to the Company. The Company will have the entire right, title and interest (both domestic and foreign) in all such Intellectual Property, which is the sole property of the Company. All papers, drawings, models, data and other materials relating to any such idea, material or invention will be included in the definition of Confidential Information, will remain the sole property of the Company, and Employee will return to the Company all such papers, and all copies thereof, including all originals and copies contained in computer hard drives or other electronic or machine readable format, upon the earlier of the Company s request thereof, or the expiration or termination of Employee's employment hereunder. Employee will execute, acknowledge and deliver to the Company any and all further assignments, contracts or other instruments the Company deems necessary or expedient, without further compensation, to carry out and effectuate the intents and purposes of the Agreement and to vest in the Company each and all of the rights of the Company in the Intellectual Property.

9. <u>Restrictive Covenant and Non-Disclosure of Confidential Information.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Non-Compete Agreement</u>** . The Employee acknowledges and agrees that Company and its subsidiary and
 affiliated companies (collectively, the "**Companies**") existing or contemplated
 businesses (collectively, the "**Business**") has invested significant time,
 effort, and resources into developing its business relationships, proprietary information,
 and competitive advantage. To protect these interests, the Employee agrees that, for a period
 of two (2) years following the termination of their employment for any reason (the "**Restricted Period** "), the Employee shall not, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Employment with Competitors</u>**. Engage in, own, manage, operate, control, be employed by, consult for, or otherwise participate in any business that competes with the Company's business as conducted at the time of termination ("**Competitive Business Activities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Employment with Clients or Business Partners</u>**<u>.</u> Accept employment with, provide services to, or otherwise engage in any business relationship with any existing client, customer, vendor, supplier, distributor, contractor, or other business partner of the Company with whom the Employee had contact or knowledge of during their employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Solicitation of Clients.</u>** Solicit, divert, or attempt to induce any client or customer of the Company to discontinue, reduce, or modify their business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **<u>Solicitation of Employees.</u>** Solicit or encourage any employee, consultant, or contractor of the Company to terminate their relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Non-Disclosure of Proprietary Information</u>** . The Employee acknowledges that they may have access to
 confidential and proprietary information of the Company ("Proprietary Information").
 During the Restricted Period, the Employee shall not use or disclose any Proprietary Information
 for their own benefit or for the benefit of any **client, competitor, or third party** engaged
 in Competitive Business Activities.

For the purposes of this Agreement, "Proprietary Information" includes, but is not limited to, trade secrets, financial information, pricing structures, business strategies, marketing plans, research and development data, operational processes, client lists, supplier agreements, and any other confidential business information not generally known to the public. The Employee agrees that all documents, records, and materials containing such information shall be returned to the Company upon termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Documents.</u>** "**Documents**" shall mean all original written, recorded, or graphic matters
 whatsoever, and any and all copies thereof, including, but not limited to: papers; books;
 records; tangible things; correspondence; communications; telex messages; memoranda; work
 papers; reports; affidavits; statements; summaries; analyses; evaluations; client records
 and information; agreements; agendas; advertisements; instructions; charges; manuals; brochures;
 publications; directories; industry lists; schedules; price lists; client lists; statistical
 records; training manuals; computer printouts; books of account, records and invoices reflecting
 business operations; all things similar to any of the foregoing however denominated. In all
 cases where originals are not available, the term "Documents" shall also mean
 identical copies of original documents or non-identical copies thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Company's Clients.</u>** The "**Company's Clients**" shall be deemed to be any
 partnerships, corporations, professional associations or other business organizations with
 whom the Company has conducted business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Competitive Business Activities.</u>** The term "**Competitive Business Activities** "
 as used herein shall be deemed to mean the business of the Company at the time of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Covenants as Essential Elements of this Agreement.</u>** It is understood by and between the parties
 hereto that the foregoing covenants contained in Sections 9(a) and (b) are essential elements
 of this Agreement, and that but for the agreement by the Employee to comply with such covenants,
 the Company would not have agreed to enter into this Agreement. Such covenants by the Employee
 shall be construed to be agreements independent of any other provisions of this Agreement.
 The existence of any other claim or cause of action, whether predicated on any other provision
 in this Agreement, or otherwise, because of the relationship between the parties shall not
 constitute a defense to the enforcement of such covenants against the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Survival After Termination of Agreement.</u>** Notwithstanding anything to the contrary contained
 in this Agreement, the covenants in Sections 9(a) and (b) shall survive the termination of
 this Agreement and the Employee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Remedies.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Employee acknowledges and agrees that
 the Company's remedy at law for a breach or threatened breach of any of the provisions
 of Section 9(a) or (b) herein would be inadequate and a breach thereof will cause irreparable
 harm to the Company. In recognition of this fact, in the event of a breach by the Employee
 of any of the provisions of Section 9(a) or (b), the Employee agrees that, in addition to
 any remedy at law available to the Company, including, but not limited to monetary damages,
 all rights of the Employee to payment or otherwise under this Agreement and all amounts then
 or thereafter due to the Employee from the Company under this Agreement may be terminated
 and the Company, without posting any bond, shall be entitled to obtain, and the Employee
 agrees not to oppose the Company's request for equitable relief in the form of specific
 performance, temporary restraining order, temporary or permanent injunction or any other
 equitable remedy which may then be available to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Employee acknowledges
 that the granting of a temporary injunction, temporary restraining order, or permanent injunction
 merely prohibiting the use of Proprietary Information would not be an adequate remedy upon
 breach or threatened breach of Section 9(a) or (b) and consequently agrees, upon proof of
 any such breach, to granting of injunctive relief prohibiting any form of competition with
 the Company. Nothing contained herein shall be construed as prohibiting the Company from
 pursuing any other remedies available to it for such breach or threatened breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Prohibition on Undisclosed Transactions and Conflicts of Interest</u> 

The Employee agrees that, during the Term of this Agreement, they shall not, directly or indirectly, engage in, participate in, or benefit from any transaction, agreement, or business opportunity that is related to or competitive with the business of the Company, unless such engagement has been fully disclosed in writing to the Company and expressly approved in advance by the Board of Directors. This includes, but is not limited to, accepting commissions, fees, equity, or other compensation in connection with any business opportunity that falls within the scope of the Company's current or planned operations. Any failure to disclose such arrangements shall be deemed a material breach of this Agreement and grounds for immediate termination for cause.

10. **<u>Reasonable Restrictions</u>**. The parties acknowledge and agree that the restrictions set forth in Sections 8 and 9 of this Agreement are reasonable for the purpose of protecting the value of the business and goodwill of the Companies. It is the desire and intent of the parties that the provisions of Sections 8 and 9 be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. If any particular provisions or portions of Sections 8 or 9 are adjudicated to be invalid or unenforceable, then such section will be deemed amended to delete such provision or portion adjudicated to be invalid or unenforceable; provided, however, that such amendments apply only with respect to the operation of such section in the particular jurisdiction in which such adjudication is made.

11. **<u>Breach or Threatened Breach</u>**. The parties acknowledge and agree that the performance of the obligations under Section 8 and 9 by Employee are special, unique and extraordinary in character, and that in the event of the breach or threatened breach by Employee of the terms and conditions of Sections 8 and 9, the Companies will suffer irreparable injury and that monetary damages would not provide an adequate remedy at law and that no remedy at law may exist. Accordingly, in the event of such breach or threatened breach, the Company will be entitled, if it so elects and without the posting of any bond or security, to institute and prosecute proceedings in any court of competent jurisdiction, in law and in equity, to obtain damages for any breach of Sections 8 or 9 or to enforce the specific performance of this Agreement by Employee or to enjoin Employee from breaching or attempting to breach Sections 8 or 9. In the event the Company believes that the Employee has breached Employee s obligations under Sections 8 or 9, or threatens to do so, it shall promptly provide the Employee written notice of such belief setting forth the basis for its belief and, (unless under exigent circumstances, as determined by the Company at its sole discretion, it would harm the Companies to delay the institution of legal proceedings) five (5) business days to respond to the notice, prior to the initiation of legal proceedings.

If Employee breaches or violates any of the provisions of Sections 8 or 9, the running of the Period of Non-Compete will be tolled with respect to Employee during the continuance of any actual breach or violation. In addition to any other rights or remedies the Company may have under this Agreement or applicable law, the Company will be entitled to receive from Employee reimbursement for all attorney fees, costs, expenses and court costs incurred by the Companies in enforcing this Agreement and will have the right and remedy to require Employee to account for and pay over to the Company all compensation, profit, monies, accruals or other benefits derived or received, directly or indirectly, by Employee from the action constituting a breach or violation of this Section.

12. **<u>Termination</u>**. The Employee s employment under this Agreement may be terminated upon the occurrence of any of the events described in, and subject to the terms of this Section 12:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Death</u>** . Immediately
 and automatically upon the death of Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Disability</u>** .
 At the Company's option, immediately upon written notice if Employee suffers a permanent
 disability, meaning any incapacity, illness or disability of Employee which renders Employee
 mentally or physically unable to perform his duties under this Agreement for a continuous
 period of sixty (60) days, or one hundred twenty (120) days (whether or not consecutive),
 during the Term, as reasonably determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Termination for Cause</u>** . At the Company s option, immediately upon notice to Employee, upon the
 occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Employee being convicted of any felony (whether
 or not against the Company or its subsidiaries or affiliates);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material failure of Employee to perform
 Employee s responsibilities after ten (10) days written notice given by an executive officer
 of the Company to Employee, which notice shall identify the Employee s failure in sufficient
 detail and grant Employee an opportunity to cure such failure within such ten (10) day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a breach by Employee
 of any of his obligations under the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material act of dishonesty or other
 misconduct by Employee against the Company or any of its subsidiaries or affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a material violation by Employee of any
 of the policies or procedures of the Company or any of its subsidiaries or affiliates, including
 without limitation the set forth in Off The Hook YS Company Employee Handbook, provided,
 however, that if such violation is curable, then Employee will be given ten (10) days written
 notice and the opportunity to cure such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Termination Without Cause</u>** . At the Company s option for any reason, or no reason, upon five (5)
 days written notice to Employee given by the CEO or Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Termination With Good Reason</u>** . At Employee's option, upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in the Employee's
 base compensation or Performance Bonus opportunity or benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution
 in the Employee s authority, duties, or responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material diminution in the budget over
 which the Employee retains authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a change in the geographic location to
 one outside North Carolina at which the Employee must perform the services under this Agreement;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 other action or inaction that constitutes a material breach by the Company of this Agreement.

For purposes of this Agreement, Good Reason shall not be deemed to exist unless the Employee's termination of employment for Good Reason occurs within 2 years following the initial existence of one of the conditions specified in clauses (i) through (v) above, the Employee provides the Company with written notice of the existence of such condition within 90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Payments After Termination</u>** . If Employee s employment hereunder is terminated for the reasons
 set forth in Sections 12(a) or 12(b), then Employee or Employee's estate will receive
 the Base Salary and any Performance Bonus earned through the date of death or disability,
 and all of Employee s stock options and restricted stock shall immediately vest. If the Company
 terminates Employee's employment hereunder for the reasons set forth in Section 12(c),
 then (i) Employee will receive his Base Salary through the date of termination and (ii) Employee
 will forfeit any entitlement that Employee may have to receive any Performance Bonus. If
 Employee s employment hereunder is terminated for the reason set forth in Section 12(d) or
 12(e), then (i) Employee will receive his Base Salary, his Average Performance Bonus (as
 defined below) and benefits set forth in Section 4(b) hereof (collectively, with the payment
 of the Base Salary and Average Performance Bonus, the Severance Benefits), over a period
 of twelve (12) months from the date of termination (the Severance Period). The Average Performance
 Bonus shall mean the average of the Performance Bonuses the Employee has received during
 the last three complete calendar years for which the Employee was an employee of the Company.
 The Severance Benefit shall be payable in accordance with the Company s payroll procedures
 and subject to applicable withholdings, and subject to Employee complying with the obligations
 set forth in Section 8 and 9. Any severance benefits payable to Employee also shall be conditioned
 upon Employee s execution of a general release of claims in a form to be provided by the
 Company, and the release becoming effective within 45 days after the date on which Employee
 s employment terminates. Payment of any severance benefits shall be delayed until the 46th
 day following the date on which Employee's employment terminates (the "**Payment Commencement Date** "), and any severance benefits that are so delayed shall be paid
 on the Payment Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>General</u>** .
 Notwithstanding anything to the contrary set forth in this Agreement, the provision of payments
 after termination in accordance with the provisions of Section 12 (f) above, shall not be
 a bar to the Employee s continued entitlement from the Company of (i) reimbursements of proper
 expenses, (ii) expense allowances, (iii) vested benefit and welfare entitlements; (iv) unemployment
 compensation, (v) workers compensation benefits, (vi) accrued vacation time (if consistent
 with Company policy), and (vii) Base Salary through date of termination. Notwithstanding
 anything in this Agreement to the contrary, if Employee is employed by the Company for an
 entire calendar year and is terminated for any reason prior to the payment of the Performance
 Bonus for that year, if any, the Company hereby agrees to pay Employee any Performance Bonus
 that he would have otherwise been entitled to for that prior year, simultaneous with the
 payment of such bonuses to the Company s employees, and (viii) continued vesting of options
 and restricted stock as may be provided in accordance with the provisions of this Agreement
 or any incentive plan. Upon payment by the Company of the amounts described in Section 12(f)
 and this Section 12(g), Employee will not be entitled to receive any further compensation
 or benefits from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Change in Control</u>** . In the event of loss of employment due to Change of Control, employee
 will be entitled to all owed salary and benefits, as per the terms of Section 12(d), Termination
 by the Company Other than for Cause.

13. **<u>Indemnification.</u>** The Employee shall continue to be covered by the Certificate of Incorporation and/or the Bylaws of the Company with respect to matters occurring on or prior to the date of termination of the Employee's employment with the Company, subject to all the provisions of Nevada and Federal law and the Certificate of Incorporation and Bylaws of the Company then in effect. Such reasonable expenses, including attorneys' fees, that may be covered by the Certificate of Incorporation and/or Bylaws of the Company shall be paid by the Company on a current basis in accordance with such provision, the Company's Certificate of Incorporation, and Nevada law. To the extent that any such payments by the Company pursuant to the Company's Certificate of Incorporation and/or Bylaws may be subject to repayment by the Employee pursuant to the provisions of the Company's Certificate of Incorporation or Bylaws, or pursuant to Nevada or Federal law, such repayment shall be due and payable by the Employee to the Company within three (3) months after the termination of all proceedings, if any, which relate to such repayment and to the Company's affairs for the period prior to the date of termination of the Employee's employment with the Company and as to which Employee has been covered by such applicable provisions.

14. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Survival</u>** .
 The provisions of this Agreement shall survive the termination or expiration of this Agreement
 for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Entire Agreement</u>** . This Agreement constitutes the entire agreement of the parties pertaining
 to its subject matter and supersedes all prior or contemporaneous agreements or understandings
 between the parties pertaining to the subject matter of this Agreement, and there are no
 promises, agreements, conditions, undertakings, warranties, or representations, whether written
 or oral, expressed or implied, between the parties other than as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Modification</u>** .
 This Agreement may not be amended or modified, or any provision waived, unless in writing
 and signed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Waiver</u>** .
 Failure of a party to enforce one or more of the provisions of this Agreement or to require
 at any time performance of any of the obligations of this Agreement will not be construed
 to be a waiver of such provisions by such party nor to in any way affect the validity of
 this Agreement or such party s right thereafter to enforce any provision of this Agreement,
 nor to preclude such party from taking any other action at any time which it would legally
 be entitled to take.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Successors and Assigns</u>** . This Agreement may not be assigned or the duties delegated unless in
 writing and signed by both parties, except for any assignment by the Company occurring by
 operation of law or the transfer of substantially all of the Company s assets. Subject to
 the foregoing, this Agreement will inure to the benefit of, and be binding upon, the parties
 and their heirs, beneficiaries, personal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Notices</u>** .
 Any notice, demand, consent, agreements, request, or other communication required or permitted
 under this Agreement will be in writing and will be, (i) mailed by first-class mail, registered
 or certified, return receipt requested, postage prepaid, (ii) delivered personally by independent
 courier, or (iii) transmitted by facsimile, to the parties at the addressee as follows (or
 at such other addresses as will be specified by the parties by like notice).

**If to Employee, then to:**

**If to the Company, then to:**

1701 Jel Wade Dr, Wilmington, NC 28401

Each party may designate by notice in writing a new address to which any notice, demand, consent, agreement, request or communication may thereafter be given, served or sent. Each notice, demand, consent, agreement, request or communication that is mailed, hand delivered or transmitted in the manner described above will be deemed received for all purposes at such time as it is delivered to the addresses (with the return receipt, the courier delivery receipt or the telecopier answer back confirmation being deemed conclusive evidence of such delivery) or at such time as deliver is refused by the addressee upon presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Severability</u>** .
 If any provision of this Agreement is held to be invalid or unenforceable by a court of competent
 jurisdiction, then such invalidity or unenforceability will not affect the validity and enforceability
 of the other provisions of this Agreement and the provision held to be invalid or unenforceable
 will be enforced as nearly as possible according to its original terms and intent to eliminate
 such invalidity or unenforceability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Counterparts</u>** .
 This Agreement may be executed in any number of counterparts, and all counterparts will collectively
 be deemed to constitute a single binding agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Binding Effect/Assignment.</u>** This Agreement shall be binding upon the parties hereto, their
 heirs, legal representatives, successors, and assigns. This Agreement shall not be assignable
 by the Employee but shall be assignable by the Company in connection with the sale, transfer,
 or other disposition of its business or to any of the Company's affiliates controlled
 by or under common control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Governing Law; Venue</u>** . This Agreement will be governed by the laws of the State of North Carolina,
 without regard to its conflicts of law principles. Employee consents to the jurisdiction
 of any state or federal court located within the State of North Carolina, agrees that such
 courts shall be the exclusive jurisdiction for any suit, action, or legal proceeding arising
 directly or indirectly out of this Agreement, and consents that all service of process may
 be made by registered or certified mail directed to Employee at the address in Section 14(f)
 of this Agreement. Employee waives any objection which Employee may have based on lack of
 personal jurisdiction or improper venue or forum non-conveniens to any suit or proceeding
 instituted by the Company under this Agreement in any state or federal court located within
 North Carolina and consents to the granting of such legal or equitable relief as is deemed
 appropriate by the court. This provision is a material inducement for the Company to enter
 into this Agreement with Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Participation of Parties</u>** . The parties acknowledge that this Agreement and all matters contemplated
 herein have been negotiated between both of the parties and their respective legal counsel
 and that both parties have participated in the drafting and preparation of this Agreement
 and Exhibit "A" from the commencement of negotiations at all times through execution.
 Therefore, the parties agree that this Agreement and Exhibit "A" will be interpreted
 and construed without reference to any rule requiring that this Agreement and Exhibit "A"
 be interpreted or construed against the party causing it to be drafted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.  **<u>Injunctive Relief</u>** . It is possible that remedies at law may be inadequate and, therefore, the
 parties will be entitled to equitable relief including, without limitation, injunctive relief,
 specific performance or other equitable remedies in addition to all other remedies provided
 hereunder or available to the parties hereto at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.  **<u>Waiver of Jury Trial</u>** . EACH OF THE COMPANY AND EMPLOYEE WAIVES ALL RIGHT TO TRIAL BY JURY
 IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PROVISIONS OF
 THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.  **<u>Right to Setoff</u>** . The Company will be entitled, in its discretion and in addition to any
 other remedies it may have in law or in equity, to set-off against any amounts payable to
 Employee under this Agreement or otherwise the amount of any obligations of Employee to the
 Company under this Agreement that are not paid by Employee when due. In the event of any
 such setoff, the Company will promptly provide the Employee with a written explanation of
 such setoff, and an opportunity to register a written protest thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o.  **<u>Litigation</u>** :
 Prevailing Party. In the event of any litigation, administrative proceeding, arbitration,
 mediation or other proceeding with regard to this Agreement, the prevailing party will be
 entitled to receive from the non-prevailing party and the non-prevailing party will pay upon
 demand all court costs and all reasonable fees and expenses of counsel and paralegals for
 the prevailing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p.  **<u>Descriptive Headings</u>** . The descriptive headings herein are inserted for convenience only and are
 not intended to be part of or to affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q.  **<u>Further Assurances.</u>** All parties hereto shall execute and deliver such other instruments and
 do such other acts as may be necessary to carry out the intent and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r.  **<u>Completeness and Modification.</u>** This Agreement constitutes the entire understanding between the
 parties hereto superseding all prior and contemporaneous agreements or understandings among
 the parties hereto concerning the Employment Agreement. This Agreement may be amended, modified,
 superseded, or canceled, and any of the terms, covenants, representations, warranties, or
 conditions hereof may be waived, only by a written instrument executed by the parties or,
 in the case of a waiver, by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s.  **<u>Superseding Agreement.</u>** This Agreement supersedes all prior or contemporaneous agreements, whether
 written or oral, and constitutes the entire understanding between the parties. Any changes
 to this Agreement must be in writing and signed by both parties. If there is any conflict
 between this Agreement and any other document or agreement related to the subject matter,
 this Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t.  **<u>Approval of Named Officers.</u>** Notwithstanding any provision to the contrary, any compensation,
 incentive, or benefit arrangement for Named Officers of the company shall be deemed effective
 only upon the express approval of the Board of Directors, following a recommendation from
 the Compensation Committee

EXECUTED as of the date set forth in the first paragraph of this Agreement.

**THE EMPLOYEE**

---

| | |
|:---|:---|
| By: | */s/ Jason Ruegg*  |
| Jason Ruegg | Jason Ruegg |

---

**THE COMPANY**

OFF THE HOOK YS, INC.

---

| | |
|:---|:---|
| By: | */s/ Brian S. John*  |
| Brian S. John, CEO | Brian S. John, CEO |

---

**<u>APPENDIX A</u>**

Bonus Targets and Performance Goals

This Appendix sets forth the performance metrics and bonus structure applicable to the Employee's annual Performance Bonus as referenced in Section 4(b) of the Agreement.

**<u>Bonus Structure:</u>**

Bonuses to be determined by the Compensation Committee and Board annually.

**<u>Commissions:</u>**

---

| | | |
|:---|:---|:---|
| Sale Type | Buy side | Sell Side |
| Wholesale | 5% | 5% |
| Brokerage Deal | 0% | 10% |
| New Boat Sale | 0% | 10% |

---

## Exhibit 10.4

**Exhibit 10.4**

**<u>OFF THE HOOK YS, INC</u>**

**EMPLOYMENT AGREEMENT - EXEMPT EMPLOYEE**

**THIS EMPLOYMENT AGREEMENT** (the "**Agreement**") is entered into on <u>May 9</u>, 2025, (the "**Execution Date**"), by and between Off The Hook YS, Inc. a Nevada corporation, whose principal place of business is 1701 Jel Wade Dr, Wilmington, NC 28401 (the "**Company**", or "**Employer**") and <u>Brian John</u>, an individual whose mailing address is <u>[ ]</u> (the "**Employee**"). This Agreement shall become effective only upon the completion of the Company's Initial Public Offering (IPO) (the "**Effective Date**"). No obligations under this Agreement, including the commencement of employment, shall arise until the Effective Date.

**<u>RECITALS</u>**

**WHEREAS**, the Company desires to employ Employee and Employee desires to be employed by the Company on the terms and subject to the conditions set forth in this Agreement.

**ACCORDINGLY**, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are acknowledged, the Company and Employee agree as follows:

**<u>TERMS</u>**

1. **<u>Employment</u>**. The Company agrees to employ the Employee, and the Employee agrees to be employed by the Company, on the terms and subject to the conditions set forth in this Agreement, commencing on the Effective Date.

2. **<u>Term</u>**. The term of Employee's employment under this Agreement shall commence on the Effective Date and shall continue for a period of three (3) years, automatically renewing for successive one (1) year periods unless terminated in accordance with this Agreement (the "**Term**").

3. <u>Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Position</u>** .
 During the Term, Employee will serve as <u>CEO</u> of the Company. Subject to the direction
 of the <u>Board</u> of the Company. Employee will perform all duties commensurate with his
 position and such other tasks as may be assigned to him by the Board of Directors of the
 Company (the "**Board** "). If requested by the Company, Employee will serve
 as an officer or director of any subsidiary of the Company, without additional compensation,
 provided, however, that if Employee is asked to serve as a director of any subsidiary of
 the Company, Employee may refuse to accept, or resign from, such appointment without causing
 a breach of this Agreement by Employee. If asked to serve as an officer or director of a
 subsidiary of the Company, Employee will be provided those officer and director indemnifications
 provided to other officers and directors of the Company and any such subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Full Time and Attention</u>** . During the Term, Employee will devote his/her full business time
 and energies to the business and affairs of the Company and its subsidiaries and will use
 his/her best efforts, skills and abilities solely to promote the interests of the Company
 and its subsidiaries and to diligently and competently perform his duties, all in a manner
 in compliance with all applicable laws and regulations and in accordance with applicable
 policies and procedures adopted or amended from time to time by the Company, including, without
 limitation, the Company Employee Handbook, a copy of which Employee acknowledges having received.
 Notwithstanding the foregoing, Employee may serve as a director on up to two and not more
 than two boards of directors of other companies, so long as such service does not interfere
 with Employee's performance of Employee's duties to the Company. Employee's
 primary place of employment shall be at the Company's primary place of business in <u>Wilmington, NC</u>; however, Employee agrees and acknowledges that a material part of
 the time devoted to his duties and position hereunder will require that Employee travel from
 time to time on behalf of the Company.

4. <u>Compensation and Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Salary</u>** .
 During the Term of this Agreement, the Employee shall be paid an initial base salary (the
 "Base Salary") paid twice monthly, at an annualized rate of <u>Three Hundred Thousand Dollars ($300,000</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Performance Bonus</u>** . The amount of the annual bonus payable to Employee for a year (if any) shall
 be based upon the targets and performance goals set forth in Appendix A to this Agreement
 (the "**Bonus Targets** "), as may be amended from time to time by the Compensation
 Committee and the Board of Directors, in their sole discretion. The Compensation Committee
 and the Board of Directors, in their sole discretion, may also award additional compensation
 to the Employee for outstanding performance or achievement. Any bonuses payable pursuant
 to this Section 4(b) shall be referred to herein as Performance Bonuses. If the Employee's
 employment terminates prior to December 31 of any year, the Employee shall be entitled to
 a pro-rata bonus for such partial calendar year, as determined by the Compensation Committee
 in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Pay Increase</u>** . The Employee's base salary may be increased at any time, at the Company's
 sole discretion, based on the Employee's performance, contributions to the Company,
 and other factors deemed relevant by the Employer. Any such increase shall be communicated
 to the Employee in writing and shall take effect on a date determined by the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Benefits</u>** .
 During the Term, Employee will be entitled to participate in or benefit from, in accordance
 with the eligibility and other provisions thereof, such life, health, medical, accident,
 dental and disability insurance, a 401(k) plan, and an Employee Stock Ownership Plan. The
 Company retains the right to terminate or amend any such plans from time to time in its sole
 discretion. For more information, refer to the Off The Hook YS Employee Handbook.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Cost of Living Adjustment.</u>** The Employee's base salary shall be subject to an annual
 Cost of Living Adjustment (the "**COLA**") based on the Consumer Price Index
 (CPI) for All Urban Consumers (CPI-U) for the previous year. The COLA shall be calculated
 as a percentage increase and shall take effect on the first day of each calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Stock Options or Restricted Stock.</u>** Under this Agreement, the Employee's compensation
 may include stock options or restricted stock to be issued in accordance with the Company's
 ESOP stock incentive plan. Specific details about the issuance of these equity awards, such
 as the grant date, vesting schedule, and strike price. Employee shall refer to this appendix
 and the 2025 Equity Incentive Plan for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Vacation.</u>** The Company offers its employees two different time-off plans: Paid Time Off ()"**PTO** ")
 and Responsible Time Off ()"**RTO** "). The RTO plan is offered to benefit-eligible
 exempt employees in the United States, while the accrued PTO plan is offered to non-exempt
 (hourly) employees in the United States. Please refer to the Off The Hook YS Employee Handbook
 for specific details on each plan, including eligibility criteria and accrual rates. We are
 committed to providing our employees with comprehensive and competitive benefits packages,
 including generous time-off policies, to support their well-being and work-life balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Holidays.</u>** The Company shall provide the Employee with a certain number of paid holidays each calendar
 year, as determined by the U.S. federal holidays designated by Congress. While the specific
 observance dates may change from year to year, all Federal bank and market holidays shall
 be observed by the Company as paid vacation days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Business Expense Reimbursement</u>** . The Company will reimburse Employee, in accordance with the
 Company's expense reimbursement policies as may be established from time to time by
 the Company, for all pre-approved and reasonable out-of-pocket travel and other expenses
 actually incurred or paid by Employee during the Term in the performance of his/her services
 under this Agreement, upon presentation of expense statements or vouchers or such other supporting
 information as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Cell Phone Usage Reimbursement.</u>** The Employee will receive a $125 monthly stipend for business
 use of their personal cell phone. The stipend doesn't cover the device cost or the
 full monthly bill. To qualify, the Employee must agree to the Bring Your Own Device Policy.
 This policy covers data protection, security, and acceptable use. By accepting the stipend,
 the Employee agrees to comply with the policy and use their phone in line with company standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Withholding</u>** .
 All payments under this Agreement will be subject to applicable taxes and required withholdings.

5. **<u>Background.</u>** Off The Hook YS understands the importance of creating a safe and secure work environment for all employees. As such, the Company reserves the right to conduct background investigations and/or reference checks on all potential employees. Please note that any job offer extended by the Company is contingent upon the successful completion of such checks.

6. **<u>Policies.</u>** Off The Hook YS employees are expected to follow the company's rules and standards to create a safe and respectful workplace for everyone. To ensure compliance with these standards, employees will receive a copy of the Off The Hook YS Employee Handbook, along with other relevant company policies, such as Regulation FD and Insider Trading Policies. The employee acknowledges that the terms of this contract are subject to and incorporates the policies and procedures set forth in the company's employee handbook and any other applicable policies, which the employee agrees to review and abide by. The contract will not become effective until the employee signs and acknowledges receipt of the employee handbook and any other applicable policies.

7. **<u>Representations of Employee</u>**. Employee represents and warrants that he/she is not, (i) a party to any enforceable employment agreement or other arrangement, whether written or oral, with any past employer, that would prevent or restrict Employee's employment with the Company; (ii) a party to or bound by any agreement, obligation or commitment, or subject to any restriction, including, but not limited to, confidentiality agreements, restrictive covenants or non-compete and non-solicitation covenants, except for agreements with the Company or its affiliates; or (iii) involved with any professional endeavors which in the future may possibly adversely affect or interfere with the business of the Company, the full performance by Employee of his duties under this Agreement or the exercise of his best efforts hereunder.

8. **<u>Intellectual Property</u>**. Any and all material eligible for copyright or trademark protection and any and all ideas and inventions ("**Intellectual Property**"), whether or not patentable, in any such case solely or jointly made, developed, conceived or reduced to practice by Employee (whether at the request or suggestion of any officer or employee of the Company or otherwise, whether alone or in conjunction with others, and whether during regular hours of work or otherwise) during the Term which arise from the fulfillment of Employee s duties hereunder and which may be directly or indirectly useful in the business of the Company will be promptly and fully disclosed in writing to the Company. The Company will have the entire right, title and interest (both domestic and foreign) in all such Intellectual Property, which is the sole property of the Company. All papers, drawings, models, data and other materials relating to any such idea, material or invention will be included in the definition of Confidential Information, will remain the sole property of the Company, and Employee will return to the Company all such papers, and all copies thereof, including all originals and copies contained in computer hard drives or other electronic or machine readable format, upon the earlier of the Company s request thereof, or the expiration or termination of Employee's employment hereunder. Employee will execute, acknowledge and deliver to the Company any and all further assignments, contracts or other instruments the Company deems necessary or expedient, without further compensation, to carry out and effectuate the intents and purposes of the Agreement and to vest in the Company each and all of the rights of the Company in the Intellectual Property.

9. <u>Restrictive Covenant and Non-Disclosure of Confidential Information.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Non-Compete Agreement</u>** . The Employee acknowledges and agrees that Company and its subsidiary and
 affiliated companies (collectively, the "**Companies**") existing or contemplated
 businesses (collectively, the "**Business**") has invested significant time,
 effort, and resources into developing its business relationships, proprietary information,
 and competitive advantage. To protect these interests, the Employee agrees that, for a period
 of two (2) years following the termination of their employment for any reason (the "**Restricted Period** "), the Employee shall not, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Employment with Competitors</u>**. Engage in, own, manage, operate, control, be employed by, consult for, or otherwise participate in any business that competes with the Company's business as conducted at the time of termination ("**Competitive Business Activities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Employment with Clients or Business Partners</u>**<u>.</u> Accept employment with, provide services to, or otherwise engage in any business relationship with any existing client, customer, vendor, supplier, distributor, contractor, or other business partner of the Company with whom the Employee had contact or knowledge of during their employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Solicitation of Clients.</u>** Solicit, divert, or attempt to induce any client or customer of the Company to discontinue, reduce, or modify their business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **<u>Solicitation of Employees.</u>** Solicit or encourage any employee, consultant, or contractor of the Company to terminate their relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Non-Disclosure of Proprietary Information</u>** . The Employee acknowledges that they may have access to
 confidential and proprietary information of the Company ("Proprietary Information").
 During the Restricted Period, the Employee shall not use or disclose any Proprietary Information
 for their own benefit or for the benefit of any **client, competitor, or third party** engaged
 in Competitive Business Activities.

For the purposes of this Agreement, "Proprietary Information" includes, but is not limited to, trade secrets, financial information, pricing structures, business strategies, marketing plans, research and development data, operational processes, client lists, supplier agreements, and any other confidential business information not generally known to the public. The Employee agrees that all documents, records, and materials containing such information shall be returned to the Company upon termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Documents.</u>** "**Documents**" shall mean all original written, recorded, or graphic matters
 whatsoever, and any and all copies thereof, including, but not limited to: papers; books;
 records; tangible things; correspondence; communications; telex messages; memoranda; work
 papers; reports; affidavits; statements; summaries; analyses; evaluations; client records
 and information; agreements; agendas; advertisements; instructions; charges; manuals; brochures;
 publications; directories; industry lists; schedules; price lists; client lists; statistical
 records; training manuals; computer printouts; books of account, records and invoices reflecting
 business operations; all things similar to any of the foregoing however denominated. In all
 cases where originals are not available, the term "Documents" shall also mean
 identical copies of original documents or non-identical copies thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Company's Clients.</u>** The "**Company's Clients**" shall be deemed to be any
 partnerships, corporations, professional associations or other business organizations with
 whom the Company has conducted business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Competitive Business Activities.</u>** The term "**Competitive Business Activities** "
 as used herein shall be deemed to mean the business of the Company at the time of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Covenants as Essential Elements of this Agreement.</u>** It is understood by and between the parties
 hereto that the foregoing covenants contained in Sections 9(a) and (b) are essential elements
 of this Agreement, and that but for the agreement by the Employee to comply with such covenants,
 the Company would not have agreed to enter into this Agreement. Such covenants by the Employee
 shall be construed to be agreements independent of any other provisions of this Agreement.
 The existence of any other claim or cause of action, whether predicated on any other provision
 in this Agreement, or otherwise, because of the relationship between the parties shall not
 constitute a defense to the enforcement of such covenants against the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Survival After Termination of Agreement.</u>** Notwithstanding anything to the contrary contained
 in this Agreement, the covenants in Sections 9(a) and (b) shall survive the termination of
 this Agreement and the Employee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Remedies.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Employee acknowledges and agrees that
 the Company's remedy at law for a breach or threatened breach of any of the provisions
 of Section 9(a) or (b) herein would be inadequate and a breach thereof will cause irreparable
 harm to the Company. In recognition of this fact, in the event of a breach by the Employee
 of any of the provisions of Section 9(a) or (b), the Employee agrees that, in addition to
 any remedy at law available to the Company, including, but not limited to monetary damages,
 all rights of the Employee to payment or otherwise under this Agreement and all amounts then
 or thereafter due to the Employee from the Company under this Agreement may be terminated
 and the Company, without posting any bond, shall be entitled to obtain, and the Employee
 agrees not to oppose the Company's request for equitable relief in the form of specific
 performance, temporary restraining order, temporary or permanent injunction or any other
 equitable remedy which may then be available to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Employee acknowledges
 that the granting of a temporary injunction, temporary restraining order, or permanent injunction
 merely prohibiting the use of Proprietary Information would not be an adequate remedy upon
 breach or threatened breach of Section 9(a) or (b) and consequently agrees, upon proof of
 any such breach, to granting of injunctive relief prohibiting any form of competition with
 the Company. Nothing contained herein shall be construed as prohibiting the Company from
 pursuing any other remedies available to it for such breach or threatened breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Prohibition on Undisclosed Transactions and Conflicts of Interest</u> 

The Employee agrees that, during the Term of this Agreement, they shall not, directly or indirectly, engage in, participate in, or benefit from any transaction, agreement, or business opportunity that is related to or competitive with the business of the Company, unless such engagement has been fully disclosed in writing to the Company and expressly approved in advance by the Board of Directors. This includes, but is not limited to, accepting commissions, fees, equity, or other compensation in connection with any business opportunity that falls within the scope of the Company's current or planned operations. Any failure to disclose such arrangements shall be deemed a material breach of this Agreement and grounds for immediate termination for cause.

10. **<u>Reasonable Restrictions</u>**. The parties acknowledge and agree that the restrictions set forth in Sections 8 and 9 of this Agreement are reasonable for the purpose of protecting the value of the business and goodwill of the Companies. It is the desire and intent of the parties that the provisions of Sections 8 and 9 be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. If any particular provisions or portions of Sections 8 or 9 are adjudicated to be invalid or unenforceable, then such section will be deemed amended to delete such provision or portion adjudicated to be invalid or unenforceable; provided, however, that such amendments apply only with respect to the operation of such section in the particular jurisdiction in which such adjudication is made.

11. **<u>Breach or Threatened Breach</u>**. The parties acknowledge and agree that the performance of the obligations under Section 8 and 9 by Employee are special, unique and extraordinary in character, and that in the event of the breach or threatened breach by Employee of the terms and conditions of Sections 8 and 9, the Companies will suffer irreparable injury and that monetary damages would not provide an adequate remedy at law and that no remedy at law may exist. Accordingly, in the event of such breach or threatened breach, the Company will be entitled, if it so elects and without the posting of any bond or security, to institute and prosecute proceedings in any court of competent jurisdiction, in law and in equity, to obtain damages for any breach of Sections 8 or 9 or to enforce the specific performance of this Agreement by Employee or to enjoin Employee from breaching or attempting to breach Sections 8 or 9. In the event the Company believes that the Employee has breached Employee s obligations under Sections 8 or 9, or threatens to do so, it shall promptly provide the Employee written notice of such belief setting forth the basis for its belief and, (unless under exigent circumstances, as determined by the Company at its sole discretion, it would harm the Companies to delay the institution of legal proceedings) five (5) business days to respond to the notice, prior to the initiation of legal proceedings.

If Employee breaches or violates any of the provisions of Sections 8 or 9, the running of the Period of Non-Compete will be tolled with respect to Employee during the continuance of any actual breach or violation. In addition to any other rights or remedies the Company may have under this Agreement or applicable law, the Company will be entitled to receive from Employee reimbursement for all attorney fees, costs, expenses and court costs incurred by the Companies in enforcing this Agreement and will have the right and remedy to require Employee to account for and pay over to the Company all compensation, profit, monies, accruals or other benefits derived or received, directly or indirectly, by Employee from the action constituting a breach or violation of this Section.

12. **<u>Termination</u>**. The Employee s employment under this Agreement may be terminated upon the occurrence of any of the events described in, and subject to the terms of this Section 12:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Death</u>** . Immediately
 and automatically upon the death of Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Disability</u>** .
 At the Company's option, immediately upon written notice if Employee suffers a permanent
 disability, meaning any incapacity, illness or disability of Employee which renders Employee
 mentally or physically unable to perform his duties under this Agreement for a continuous
 period of sixty (60) days, or one hundred twenty (120) days (whether or not consecutive),
 during the Term, as reasonably determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Termination for Cause</u>** . At the Company s option, immediately upon notice to Employee, upon the
 occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Employee being convicted of any felony (whether
 or not against the Company or its subsidiaries or affiliates);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material failure of Employee to perform
 Employee s responsibilities after ten (10) days written notice given by an executive officer
 of the Company to Employee, which notice shall identify the Employee s failure in sufficient
 detail and grant Employee an opportunity to cure such failure within such ten (10) day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a breach by Employee
 of any of his obligations under the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material act of dishonesty or other
 misconduct by Employee against the Company or any of its subsidiaries or affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a material violation by Employee of any
 of the policies or procedures of the Company or any of its subsidiaries or affiliates, including
 without limitation the set forth in Off The Hook YS Company Employee Handbook, provided,
 however, that if such violation is curable, then Employee will be given ten (10) days written
 notice and the opportunity to cure such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Termination Without Cause</u>** . At the Company s option for any reason, or no reason, upon five (5)
 days written notice to Employee given by the CEO or Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Termination With Good Reason</u>** . At Employee's option, upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in the Employee's
 base compensation or Performance Bonus opportunity or benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution
 in the Employee s authority, duties, or responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material diminution in the budget over
 which the Employee retains authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a change in the geographic location to
 one outside North Carolina at which the Employee must perform the services under this Agreement;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 other action or inaction that constitutes a material breach by the Company of this Agreement.

For purposes of this Agreement, Good Reason shall not be deemed to exist unless the Employee's termination of employment for Good Reason occurs within 2 years following the initial existence of one of the conditions specified in clauses (i) through (v) above, the Employee provides the Company with written notice of the existence of such condition within 90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Payments After Termination</u>** . If Employee s employment hereunder is terminated for the reasons
 set forth in Sections 12(a) or 12(b), then Employee or Employee's estate will receive
 the Base Salary and any Performance Bonus earned through the date of death or disability,
 and all of Employee s stock options and restricted stock shall immediately vest. If the Company
 terminates Employee's employment hereunder for the reasons set forth in Section 12(c),
 then (i) Employee will receive his Base Salary through the date of termination and (ii) Employee
 will forfeit any entitlement that Employee may have to receive any Performance Bonus. If
 Employee s employment hereunder is terminated for the reason set forth in Section 12(d) or
 12(e), then (i) Employee will receive his Base Salary, his Average Performance Bonus (as
 defined below) and benefits set forth in Section 4(b) hereof (collectively, with the payment
 of the Base Salary and Average Performance Bonus, the Severance Benefits), over a period
 of twelve (12) months from the date of termination (the Severance Period). The Average Performance
 Bonus shall mean the average of the Performance Bonuses the Employee has received during
 the last three complete calendar years for which the Employee was an employee of the Company.
 The Severance Benefit shall be payable in accordance with the Company s payroll procedures
 and subject to applicable withholdings, and subject to Employee complying with the obligations
 set forth in Section 8 and 9. Any severance benefits payable to Employee also shall be conditioned
 upon Employee s execution of a general release of claims in a form to be provided by the
 Company, and the release becoming effective within 45 days after the date on which Employee
 s employment terminates. Payment of any severance benefits shall be delayed until the 46th
 day following the date on which Employee's employment terminates (the "**Payment Commencement Date** "), and any severance benefits that are so delayed shall be paid
 on the Payment Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>General</u>** .
 Notwithstanding anything to the contrary set forth in this Agreement, the provision of payments
 after termination in accordance with the provisions of Section 12 (f) above, shall not be
 a bar to the Employee s continued entitlement from the Company of (i) reimbursements of proper
 expenses, (ii) expense allowances, (iii) vested benefit and welfare entitlements; (iv) unemployment
 compensation, (v) workers compensation benefits, (vi) accrued vacation time (if consistent
 with Company policy), and (vii) Base Salary through date of termination. Notwithstanding
 anything in this Agreement to the contrary, if Employee is employed by the Company for an
 entire calendar year and is terminated for any reason prior to the payment of the Performance
 Bonus for that year, if any, the Company hereby agrees to pay Employee any Performance Bonus
 that he would have otherwise been entitled to for that prior year, simultaneous with the
 payment of such bonuses to the Company s employees, and (viii) continued vesting of options
 and restricted stock as may be provided in accordance with the provisions of this Agreement
 or any incentive plan. Upon payment by the Company of the amounts described in Section 12(f)
 and this Section 12(g), Employee will not be entitled to receive any further compensation
 or benefits from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Change in Control</u>** . In the event of loss of employment due to Change of Control, employee
 will be entitled to all owed salary and benefits, as per the terms of Section 12(d), Termination
 by the Company Other than for Cause.

13. **<u>Indemnification.</u>** The Employee shall continue to be covered by the Certificate of Incorporation and/or the Bylaws of the Company with respect to matters occurring on or prior to the date of termination of the Employee's employment with the Company, subject to all the provisions of Nevada and Federal law and the Certificate of Incorporation and Bylaws of the Company then in effect. Such reasonable expenses, including attorneys' fees, that may be covered by the Certificate of Incorporation and/or Bylaws of the Company shall be paid by the Company on a current basis in accordance with such provision, the Company's Certificate of Incorporation, and Nevada law. To the extent that any such payments by the Company pursuant to the Company's Certificate of Incorporation and/or Bylaws may be subject to repayment by the Employee pursuant to the provisions of the Company's Certificate of Incorporation or Bylaws, or pursuant to Nevada or Federal law, such repayment shall be due and payable by the Employee to the Company within three (3) months after the termination of all proceedings, if any, which relate to such repayment and to the Company's affairs for the period prior to the date of termination of the Employee's employment with the Company and as to which Employee has been covered by such applicable provisions.

14. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Survival</u>** .
 The provisions of this Agreement shall survive the termination or expiration of this Agreement
 for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Entire Agreement</u>** . This Agreement constitutes the entire agreement of the parties pertaining
 to its subject matter and supersedes all prior or contemporaneous agreements or understandings
 between the parties pertaining to the subject matter of this Agreement, and there are no
 promises, agreements, conditions, undertakings, warranties, or representations, whether written
 or oral, expressed or implied, between the parties other than as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Modification</u>** .
 This Agreement may not be amended or modified, or any provision waived, unless in writing
 and signed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Waiver</u>** .
 Failure of a party to enforce one or more of the provisions of this Agreement or to require
 at any time performance of any of the obligations of this Agreement will not be construed
 to be a waiver of such provisions by such party nor to in any way affect the validity of
 this Agreement or such party s right thereafter to enforce any provision of this Agreement,
 nor to preclude such party from taking any other action at any time which it would legally
 be entitled to take.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Successors and Assigns</u>** . This Agreement may not be assigned or the duties delegated unless in
 writing and signed by both parties, except for any assignment by the Company occurring by
 operation of law or the transfer of substantially all of the Company s assets. Subject to
 the foregoing, this Agreement will inure to the benefit of, and be binding upon, the parties
 and their heirs, beneficiaries, personal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Notices</u>** .
 Any notice, demand, consent, agreements, request, or other communication required or permitted
 under this Agreement will be in writing and will be, (i) mailed by first-class mail, registered
 or certified, return receipt requested, postage prepaid, (ii) delivered personally by independent
 courier, or (iii) transmitted by facsimile, to the parties at the addressee as follows (or
 at such other addresses as will be specified by the parties by like notice).

**If to Employee, then to:**

**If to the Company, then to:**

1701 Jel Wade Dr, Wilmington, NC 28401

Each party may designate by notice in writing a new address to which any notice, demand, consent, agreement, request or communication may thereafter be given, served or sent. Each notice, demand, consent, agreement, request or communication that is mailed, hand delivered or transmitted in the manner described above will be deemed received for all purposes at such time as it is delivered to the addresses (with the return receipt, the courier delivery receipt or the telecopier answer back confirmation being deemed conclusive evidence of such delivery) or at such time as deliver is refused by the addressee upon presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Severability</u>** .
 If any provision of this Agreement is held to be invalid or unenforceable by a court of competent
 jurisdiction, then such invalidity or unenforceability will not affect the validity and enforceability
 of the other provisions of this Agreement and the provision held to be invalid or unenforceable
 will be enforced as nearly as possible according to its original terms and intent to eliminate
 such invalidity or unenforceability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Counterparts</u>** .
 This Agreement may be executed in any number of counterparts, and all counterparts will collectively
 be deemed to constitute a single binding agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Binding Effect/Assignment.</u>** This Agreement shall be binding upon the parties hereto, their
 heirs, legal representatives, successors, and assigns. This Agreement shall not be assignable
 by the Employee but shall be assignable by the Company in connection with the sale, transfer,
 or other disposition of its business or to any of the Company's affiliates controlled
 by or under common control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Governing Law; Venue</u>** . This Agreement will be governed by the laws of the State of North Carolina,
 without regard to its conflicts of law principles. Employee consents to the jurisdiction
 of any state or federal court located within the State of North Carolina, agrees that such
 courts shall be the exclusive jurisdiction for any suit, action, or legal proceeding arising
 directly or indirectly out of this Agreement, and consents that all service of process may
 be made by registered or certified mail directed to Employee at the address in Section 14(f)
 of this Agreement. Employee waives any objection which Employee may have based on lack of
 personal jurisdiction or improper venue or forum non-conveniens to any suit or proceeding
 instituted by the Company under this Agreement in any state or federal court located within
 North Carolina and consents to the granting of such legal or equitable relief as is deemed
 appropriate by the court. This provision is a material inducement for the Company to enter
 into this Agreement with Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Participation of Parties</u>** . The parties acknowledge that this Agreement and all matters contemplated
 herein have been negotiated between both of the parties and their respective legal counsel
 and that both parties have participated in the drafting and preparation of this Agreement
 and Exhibit "A" from the commencement of negotiations at all times through execution.
 Therefore, the parties agree that this Agreement and Exhibit "A" will be interpreted
 and construed without reference to any rule requiring that this Agreement and Exhibit "A"
 be interpreted or construed against the party causing it to be drafted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.  **<u>Injunctive Relief</u>** . It is possible that remedies at law may be inadequate and, therefore, the
 parties will be entitled to equitable relief including, without limitation, injunctive relief,
 specific performance or other equitable remedies in addition to all other remedies provided
 hereunder or available to the parties hereto at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.  **<u>Waiver of Jury Trial</u>** . EACH OF THE COMPANY AND EMPLOYEE WAIVES ALL RIGHT TO TRIAL BY JURY
 IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PROVISIONS OF
 THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.  **<u>Right to Setoff</u>** . The Company will be entitled, in its discretion and in addition to any
 other remedies it may have in law or in equity, to set-off against any amounts payable to
 Employee under this Agreement or otherwise the amount of any obligations of Employee to the
 Company under this Agreement that are not paid by Employee when due. In the event of any
 such setoff, the Company will promptly provide the Employee with a written explanation of
 such setoff, and an opportunity to register a written protest thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o.  **<u>Litigation</u>** :
 Prevailing Party. In the event of any litigation, administrative proceeding, arbitration,
 mediation or other proceeding with regard to this Agreement, the prevailing party will be
 entitled to receive from the non-prevailing party and the non-prevailing party will pay upon
 demand all court costs and all reasonable fees and expenses of counsel and paralegals for
 the prevailing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p.  **<u>Descriptive Headings</u>** . The descriptive headings herein are inserted for convenience only and are
 not intended to be part of or to affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q.  **<u>Further Assurances.</u>** All parties hereto shall execute and deliver such other instruments and
 do such other acts as may be necessary to carry out the intent and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r.  **<u>Completeness and Modification.</u>** This Agreement constitutes the entire understanding between the
 parties hereto superseding all prior and contemporaneous agreements or understandings among
 the parties hereto concerning the Employment Agreement. This Agreement may be amended, modified,
 superseded, or canceled, and any of the terms, covenants, representations, warranties, or
 conditions hereof may be waived, only by a written instrument executed by the parties or,
 in the case of a waiver, by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s.  **<u>Superseding Agreement.</u>** This Agreement supersedes all prior or contemporaneous agreements, whether
 written or oral, and constitutes the entire understanding between the parties. Any changes
 to this Agreement must be in writing and signed by both parties. If there is any conflict
 between this Agreement and any other document or agreement related to the subject matter,
 this Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t.  **<u>Approval of Named Officers.</u>** Notwithstanding any provision to the contrary, any compensation,
 incentive, or benefit arrangement for Named Officers of the company shall be deemed effective
 only upon the express approval of the Board of Directors, following a recommendation from
 the Compensation Committee

EXECUTED as of the date set forth in the first paragraph of this Agreement.

**THE EMPLOYEE**

---

| | |
|:---|:---|
| By: | */s/ Brian John*  |
| Brian John | Brian John |

---

**THE COMPANY**

OFF THE HOOK YS, INC.

---

| | |
|:---|:---|
| By: | */s/ Jason Ruegg*  |
| Jason Ruegg, President | Jason Ruegg, President |

---

**<u>APPENDIX A</u>**

Bonus Targets and Performance Goals

This Appendix sets forth the performance metrics and bonus structure applicable to the Employee's annual Performance Bonus as referenced in Section 4(b) of the Agreement.

**<u>Bonus Structure:</u>**

Bonuses to be determined by the Compensation Committee and Board annually.

## Exhibit 10.5

**Exhibit 10.5**

**<u>OFF THE HOOK YS, INC</u>**

**EMPLOYMENT AGREEMENT - EXEMPT EMPLOYEE**

**THIS EMPLOYMENT AGREEMENT** (the "**Agreement**") is entered into on <u>May 9</u>, 2025, (the "**Execution Date**"), by and between Off The Hook YS, Inc. a Nevada corporation, whose principal place of business is 1701 Jel Wade Dr, Wilmington, NC 28401 (the "**Company**", or "**Employer**") and <u>Chad Corbin</u>, an individual whose mailing address is <u>[ ]</u> (the "**Employee**"). This Agreement shall become effective only upon the completion of the Company's Initial Public Offering (IPO) (the "**Effective Date**"). No obligations under this Agreement, including the commencement of employment, shall arise until the Effective Date.

**<u>RECITALS</u>**

**WHEREAS**, the Company desires to employ Employee and Employee desires to be employed by the Company on the terms and subject to the conditions set forth in this Agreement.

**ACCORDINGLY**, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are acknowledged, the Company and Employee agree as follows:

**<u>TERMS</u>**

1. **<u>Employment</u>**. The Company agrees to employ the Employee, and the Employee agrees to be employed by the Company, on the terms and subject to the conditions set forth in this Agreement, commencing on the Effective Date.

2. **<u>Term</u>**. The term of Employee's employment under this Agreement shall commence on the Effective Date and shall continue for a period of three (3) years, automatically renewing for successive one (1) year periods unless terminated in accordance with this Agreement (the "**Term**").

3. <u>Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Position</u>** .
 During the Term, Employee will serve as <u>Chief Financial Officer</u> of the Company. Subject
 to the direction of the <u>President</u> of the Company. Employee will perform all duties
 commensurate with his position and such other tasks as may be assigned to him by the <u>President, CEO,</u> or the Board of Directors of the Company (the "**Board** "). If requested
 by the Company, Employee will serve as an officer or director of any subsidiary of the Company,
 without additional compensation, provided, however, that if Employee is asked to serve as
 a director of any subsidiary of the Company, Employee may refuse to accept, or resign from,
 such appointment without causing a breach of this Agreement by Employee. If asked to serve
 as an officer or director of a subsidiary of the Company, Employee will be provided those
 officer and director indemnifications provided to other officers and directors of the Company
 and any such subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Full Time and Attention</u>** . During the Term, Employee will devote his/her full business time
 and energies to the business and affairs of the Company and its subsidiaries and will use
 his/her best efforts, skills and abilities solely to promote the interests of the Company
 and its subsidiaries and to diligently and competently perform his duties, all in a manner
 in compliance with all applicable laws and regulations and in accordance with applicable
 policies and procedures adopted or amended from time to time by the Company, including, without
 limitation, the Company Employee Handbook, a copy of which Employee acknowledges having received.
 Notwithstanding the foregoing, Employee may serve as a director on up to two and not more
 than two boards of directors of other companies, so long as such service does not interfere
 with Employee's performance of Employee's duties to the Company. Employee's
 primary place of employment shall be at the Company's primary place of business in <u>Wilmington, NC</u>; however, Employee agrees and acknowledges that a material part of
 the time devoted to his duties and position hereunder will require that Employee travel from
 time to time on behalf of the Company.

4. <u>Compensation and Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Salary</u>** .
 During the Term of this Agreement, the Employee shall be paid an initial base salary (the
 "Base Salary") paid twice monthly, at an annualized rate of <u>Two Hundred Thousand Dollars ($200,000</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Performance Bonus</u>** . The amount of the annual bonus payable to Employee for a year (if any) shall
 be based upon the targets and performance goals set forth in Appendix A to this Agreement
 (the "**Bonus Targets** "), as may be amended from time to time by the Compensation
 Committee and the Board of Directors, in their sole discretion. The Compensation Committee
 and the Board of Directors, in their sole discretion, may also award additional compensation
 to the Employee for outstanding performance or achievement. Any bonuses payable pursuant
 to this Section 4(b) shall be referred to herein as Performance Bonuses. If the Employee's
 employment terminates prior to December 31 of any year, the Employee shall be entitled to
 a pro-rata bonus for such partial calendar year, as determined by the Compensation Committee
 in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Pay Increase</u>** . The Employee's base salary may be increased at any time, at the Company's
 sole discretion, based on the Employee's performance, contributions to the Company,
 and other factors deemed relevant by the Employer. Any such increase shall be communicated
 to the Employee in writing and shall take effect on a date determined by the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Benefits</u>** .
 During the Term, Employee will be entitled to participate in or benefit from, in accordance
 with the eligibility and other provisions thereof, such life, health, medical, accident,
 dental and disability insurance, a 401(k) plan, and an Employee Stock Ownership Plan. The
 Company retains the right to terminate or amend any such plans from time to time in its sole
 discretion. For more information, refer to the Off The Hook YS Employee Handbook.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Cost of Living Adjustment.</u>** The Employee's base salary shall be subject to an annual
 Cost of Living Adjustment (the "**COLA**") based on the Consumer Price Index
 (CPI) for All Urban Consumers (CPI-U) for the previous year. The COLA shall be calculated
 as a percentage increase and shall take effect on the first day of each calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Stock Options or Restricted Stock.</u>** Under this Agreement, the Employee's compensation
 may include stock options or restricted stock to be issued in accordance with the Company's
 ESOP stock incentive plan. Specific details about the issuance of these equity awards, such
 as the grant date, vesting schedule, and strike price. Employee shall refer to this appendix
 and the 2025 Equity Incentive Plan for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Vacation.</u>** The Company offers its employees two different time-off plans: Paid Time Off ()"**PTO** ")
 and Responsible Time Off ()"**RTO** "). The RTO plan is offered to benefit-eligible
 exempt employees in the United States, while the accrued PTO plan is offered to non-exempt
 (hourly) employees in the United States. Please refer to the Off The Hook YS Employee Handbook
 for specific details on each plan, including eligibility criteria and accrual rates. We are
 committed to providing our employees with comprehensive and competitive benefits packages,
 including generous time-off policies, to support their well-being and work-life balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Holidays.</u>** The Company shall provide the Employee with a certain number of paid holidays each calendar
 year, as determined by the U.S. federal holidays designated by Congress. While the specific
 observance dates may change from year to year, all Federal bank and market holidays shall
 be observed by the Company as paid vacation days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Business Expense Reimbursement</u>** . The Company will reimburse Employee, in accordance with the
 Company's expense reimbursement policies as may be established from time to time by
 the Company, for all pre-approved and reasonable out-of-pocket travel and other expenses
 actually incurred or paid by Employee during the Term in the performance of his/her services
 under this Agreement, upon presentation of expense statements or vouchers or such other supporting
 information as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Cell Phone Usage Reimbursement.</u>** The Employee will receive a $125 monthly stipend for business
 use of their personal cell phone. The stipend doesn't cover the device cost or the
 full monthly bill. To qualify, the Employee must agree to the Bring Your Own Device Policy.
 This policy covers data protection, security, and acceptable use. By accepting the stipend,
 the Employee agrees to comply with the policy and use their phone in line with company standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Withholding</u>** .
 All payments under this Agreement will be subject to applicable taxes and required withholdings.

5. **<u>Background.</u>** Off The Hook YS understands the importance of creating a safe and secure work environment for all employees. As such, the Company reserves the right to conduct background investigations and/or reference checks on all potential employees. Please note that any job offer extended by the Company is contingent upon the successful completion of such checks.

6. **<u>Policies.</u>** Off The Hook YS employees are expected to follow the company's rules and standards to create a safe and respectful workplace for everyone. To ensure compliance with these standards, employees will receive a copy of the Off The Hook YS Employee Handbook, along with other relevant company policies, such as Regulation FD and Insider Trading Policies. The employee acknowledges that the terms of this contract are subject to and incorporates the policies and procedures set forth in the company's employee handbook and any other applicable policies, which the employee agrees to review and abide by. The contract will not become effective until the employee signs and acknowledges receipt of the employee handbook and any other applicable policies.

7. **<u>Representations of Employee</u>**. Employee represents and warrants that he/she is not, (i) a party to any enforceable employment agreement or other arrangement, whether written or oral, with any past employer, that would prevent or restrict Employee's employment with the Company; (ii) a party to or bound by any agreement, obligation or commitment, or subject to any restriction, including, but not limited to, confidentiality agreements, restrictive covenants or non-compete and non-solicitation covenants, except for agreements with the Company or its affiliates; or (iii) involved with any professional endeavors which in the future may possibly adversely affect or interfere with the business of the Company, the full performance by Employee of his duties under this Agreement or the exercise of his best efforts hereunder.

8. **<u>Intellectual Property</u>**. Any and all material eligible for copyright or trademark protection and any and all ideas and inventions ("**Intellectual Property**"), whether or not patentable, in any such case solely or jointly made, developed, conceived or reduced to practice by Employee (whether at the request or suggestion of any officer or employee of the Company or otherwise, whether alone or in conjunction with others, and whether during regular hours of work or otherwise) during the Term which arise from the fulfillment of Employee s duties hereunder and which may be directly or indirectly useful in the business of the Company will be promptly and fully disclosed in writing to the Company. The Company will have the entire right, title and interest (both domestic and foreign) in all such Intellectual Property, which is the sole property of the Company. All papers, drawings, models, data and other materials relating to any such idea, material or invention will be included in the definition of Confidential Information, will remain the sole property of the Company, and Employee will return to the Company all such papers, and all copies thereof, including all originals and copies contained in computer hard drives or other electronic or machine readable format, upon the earlier of the Company s request thereof, or the expiration or termination of Employee's employment hereunder. Employee will execute, acknowledge and deliver to the Company any and all further assignments, contracts or other instruments the Company deems necessary or expedient, without further compensation, to carry out and effectuate the intents and purposes of the Agreement and to vest in the Company each and all of the rights of the Company in the Intellectual Property.

9. <u>Restrictive Covenant and Non-Disclosure of Confidential Information.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Non-Compete Agreement</u>** . The Employee acknowledges and agrees that Company and its subsidiary and
 affiliated companies (collectively, the "**Companies**") existing or contemplated
 businesses (collectively, the "**Business**") has invested significant time,
 effort, and resources into developing its business relationships, proprietary information,
 and competitive advantage. To protect these interests, the Employee agrees that, for a period
 of two (2) years following the termination of their employment for any reason (the "**Restricted Period** "), the Employee shall not, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Employment with Competitors</u>**. Engage in, own, manage, operate, control, be employed by, consult for, or otherwise participate in any business that competes with the Company's business as conducted at the time of termination ("**Competitive Business Activities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Employment with Clients or Business Partners</u>**<u>.</u> Accept employment with, provide services to, or otherwise engage in any business relationship with any existing client, customer, vendor, supplier, distributor, contractor, or other business partner of the Company with whom the Employee had contact or knowledge of during their employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Solicitation of Clients.</u>** Solicit, divert, or attempt to induce any client or customer of the Company to discontinue, reduce, or modify their business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **<u>Solicitation of Employees.</u>** Solicit or encourage any employee, consultant, or contractor of the Company to terminate their relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Non-Disclosure of Proprietary Information</u>** . The Employee acknowledges that they may have access to
 confidential and proprietary information of the Company ("Proprietary Information").
 During the Restricted Period, the Employee shall not use or disclose any Proprietary Information
 for their own benefit or for the benefit of any **client, competitor, or third party** engaged
 in Competitive Business Activities.

For the purposes of this Agreement, "Proprietary Information" includes, but is not limited to, trade secrets, financial information, pricing structures, business strategies, marketing plans, research and development data, operational processes, client lists, supplier agreements, and any other confidential business information not generally known to the public. The Employee agrees that all documents, records, and materials containing such information shall be returned to the Company upon termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Documents.</u>** "**Documents**" shall mean all original written, recorded, or graphic matters
 whatsoever, and any and all copies thereof, including, but not limited to: papers; books;
 records; tangible things; correspondence; communications; telex messages; memoranda; work
 papers; reports; affidavits; statements; summaries; analyses; evaluations; client records
 and information; agreements; agendas; advertisements; instructions; charges; manuals; brochures;
 publications; directories; industry lists; schedules; price lists; client lists; statistical
 records; training manuals; computer printouts; books of account, records and invoices reflecting
 business operations; all things similar to any of the foregoing however denominated. In all
 cases where originals are not available, the term "Documents" shall also mean
 identical copies of original documents or non-identical copies thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Company's Clients.</u>** The "**Company's Clients**" shall be deemed to be any
 partnerships, corporations, professional associations or other business organizations with
 whom the Company has conducted business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Competitive Business Activities.</u>** The term "**Competitive Business Activities** "
 as used herein shall be deemed to mean the business of the Company at the time of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Covenants as Essential Elements of this Agreement.</u>** It is understood by and between the parties
 hereto that the foregoing covenants contained in Sections 9(a) and (b) are essential elements
 of this Agreement, and that but for the agreement by the Employee to comply with such covenants,
 the Company would not have agreed to enter into this Agreement. Such covenants by the Employee
 shall be construed to be agreements independent of any other provisions of this Agreement.
 The existence of any other claim or cause of action, whether predicated on any other provision
 in this Agreement, or otherwise, because of the relationship between the parties shall not
 constitute a defense to the enforcement of such covenants against the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Survival After Termination of Agreement.</u>** Notwithstanding anything to the contrary contained
 in this Agreement, the covenants in Sections 9(a) and (b) shall survive the termination of
 this Agreement and the Employee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Remedies.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Employee acknowledges and agrees that
 the Company's remedy at law for a breach or threatened breach of any of the provisions
 of Section 9(a) or (b) herein would be inadequate and a breach thereof will cause irreparable
 harm to the Company. In recognition of this fact, in the event of a breach by the Employee
 of any of the provisions of Section 9(a) or (b), the Employee agrees that, in addition to
 any remedy at law available to the Company, including, but not limited to monetary damages,
 all rights of the Employee to payment or otherwise under this Agreement and all amounts then
 or thereafter due to the Employee from the Company under this Agreement may be terminated
 and the Company, without posting any bond, shall be entitled to obtain, and the Employee
 agrees not to oppose the Company's request for equitable relief in the form of specific
 performance, temporary restraining order, temporary or permanent injunction or any other
 equitable remedy which may then be available to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Employee acknowledges
 that the granting of a temporary injunction, temporary restraining order, or permanent injunction
 merely prohibiting the use of Proprietary Information would not be an adequate remedy upon
 breach or threatened breach of Section 9(a) or (b) and consequently agrees, upon proof of
 any such breach, to granting of injunctive relief prohibiting any form of competition with
 the Company. Nothing contained herein shall be construed as prohibiting the Company from
 pursuing any other remedies available to it for such breach or threatened breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Prohibition on Undisclosed Transactions and Conflicts of Interest</u> 

The Employee agrees that, during the Term of this Agreement, they shall not, directly or indirectly, engage in, participate in, or benefit from any transaction, agreement, or business opportunity that is related to or competitive with the business of the Company, unless such engagement has been fully disclosed in writing to the Company and expressly approved in advance by the Board of Directors. This includes, but is not limited to, accepting commissions, fees, equity, or other compensation in connection with any business opportunity that falls within the scope of the Company's current or planned operations. Any failure to disclose such arrangements shall be deemed a material breach of this Agreement and grounds for immediate termination for cause.

10. **<u>Reasonable Restrictions</u>**. The parties acknowledge and agree that the restrictions set forth in Sections 8 and 9 of this Agreement are reasonable for the purpose of protecting the value of the business and goodwill of the Companies. It is the desire and intent of the parties that the provisions of Sections 8 and 9 be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. If any particular provisions or portions of Sections 8 or 9 are adjudicated to be invalid or unenforceable, then such section will be deemed amended to delete such provision or portion adjudicated to be invalid or unenforceable; provided, however, that such amendments apply only with respect to the operation of such section in the particular jurisdiction in which such adjudication is made.

11. **<u>Breach or Threatened Breach</u>**. The parties acknowledge and agree that the performance of the obligations under Section 8 and 9 by Employee are special, unique and extraordinary in character, and that in the event of the breach or threatened breach by Employee of the terms and conditions of Sections 8 and 9, the Companies will suffer irreparable injury and that monetary damages would not provide an adequate remedy at law and that no remedy at law may exist. Accordingly, in the event of such breach or threatened breach, the Company will be entitled, if it so elects and without the posting of any bond or security, to institute and prosecute proceedings in any court of competent jurisdiction, in law and in equity, to obtain damages for any breach of Sections 8 or 9 or to enforce the specific performance of this Agreement by Employee or to enjoin Employee from breaching or attempting to breach Sections 8 or 9. In the event the Company believes that the Employee has breached Employee s obligations under Sections 8 or 9, or threatens to do so, it shall promptly provide the Employee written notice of such belief setting forth the basis for its belief and, (unless under exigent circumstances, as determined by the Company at its sole discretion, it would harm the Companies to delay the institution of legal proceedings) five (5) business days to respond to the notice, prior to the initiation of legal proceedings.

If Employee breaches or violates any of the provisions of Sections 8 or 9, the running of the Period of Non-Compete will be tolled with respect to Employee during the continuance of any actual breach or violation. In addition to any other rights or remedies the Company may have under this Agreement or applicable law, the Company will be entitled to receive from Employee reimbursement for all attorney fees, costs, expenses and court costs incurred by the Companies in enforcing this Agreement and will have the right and remedy to require Employee to account for and pay over to the Company all compensation, profit, monies, accruals or other benefits derived or received, directly or indirectly, by Employee from the action constituting a breach or violation of this Section.

12. **<u>Termination</u>**. The Employee s employment under this Agreement may be terminated upon the occurrence of any of the events described in, and subject to the terms of this Section 12:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Death</u>** . Immediately
 and automatically upon the death of Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Disability</u>** .
 At the Company's option, immediately upon written notice if Employee suffers a permanent
 disability, meaning any incapacity, illness or disability of Employee which renders Employee
 mentally or physically unable to perform his duties under this Agreement for a continuous
 period of sixty (60) days, or one hundred twenty (120) days (whether or not consecutive),
 during the Term, as reasonably determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Termination for Cause</u>** . At the Company s option, immediately upon notice to Employee, upon the
 occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Employee being convicted of any felony (whether
 or not against the Company or its subsidiaries or affiliates);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material failure of Employee to perform
 Employee s responsibilities after ten (10) days written notice given by an executive officer
 of the Company to Employee, which notice shall identify the Employee s failure in sufficient
 detail and grant Employee an opportunity to cure such failure within such ten (10) day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a breach by Employee
 of any of his obligations under the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material act of dishonesty or other
 misconduct by Employee against the Company or any of its subsidiaries or affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a material violation by Employee of any
 of the policies or procedures of the Company or any of its subsidiaries or affiliates, including
 without limitation the set forth in Off The Hook YS Company Employee Handbook, provided,
 however, that if such violation is curable, then Employee will be given ten (10) days written
 notice and the opportunity to cure such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Termination Without Cause</u>** . At the Company s option for any reason, or no reason, upon five (5)
 days written notice to Employee given by the CEO or Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Termination With Good Reason</u>** . At Employee's option, upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in the Employee's
 base compensation or Performance Bonus opportunity or benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution
 in the Employee s authority, duties, or responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material diminution in the budget over
 which the Employee retains authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a change in the geographic location to
 one outside North Carolina at which the Employee must perform the services under this Agreement;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 other action or inaction that constitutes a material breach by the Company of this Agreement.

For purposes of this Agreement, Good Reason shall not be deemed to exist unless the Employee's termination of employment for Good Reason occurs within 2 years following the initial existence of one of the conditions specified in clauses (i) through (v) above, the Employee provides the Company with written notice of the existence of such condition within 90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Payments After Termination</u>** . If Employee s employment hereunder is terminated for the reasons
 set forth in Sections 12(a) or 12(b), then Employee or Employee's estate will receive
 the Base Salary and any Performance Bonus earned through the date of death or disability,
 and all of Employee s stock options and restricted stock shall immediately vest. If the Company
 terminates Employee's employment hereunder for the reasons set forth in Section 12(c),
 then (i) Employee will receive his Base Salary through the date of termination and (ii) Employee
 will forfeit any entitlement that Employee may have to receive any Performance Bonus. If
 Employee s employment hereunder is terminated for the reason set forth in Section 12(d) or
 12(e), then (i) Employee will receive his Base Salary, his Average Performance Bonus (as
 defined below) and benefits set forth in Section 4(b) hereof (collectively, with the payment
 of the Base Salary and Average Performance Bonus, the Severance Benefits), over a period
 of twelve (12) months from the date of termination (the Severance Period). The Average Performance
 Bonus shall mean the average of the Performance Bonuses the Employee has received during
 the last three complete calendar years for which the Employee was an employee of the Company.
 The Severance Benefit shall be payable in accordance with the Company s payroll procedures
 and subject to applicable withholdings, and subject to Employee complying with the obligations
 set forth in Section 8 and 9. Any severance benefits payable to Employee also shall be conditioned
 upon Employee s execution of a general release of claims in a form to be provided by the
 Company, and the release becoming effective within 45 days after the date on which Employee
 s employment terminates. Payment of any severance benefits shall be delayed until the 46th
 day following the date on which Employee's employment terminates (the "**Payment Commencement Date** "), and any severance benefits that are so delayed shall be paid
 on the Payment Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>General</u>** .
 Notwithstanding anything to the contrary set forth in this Agreement, the provision of payments
 after termination in accordance with the provisions of Section 12 (f) above, shall not be
 a bar to the Employee s continued entitlement from the Company of (i) reimbursements of proper
 expenses, (ii) expense allowances, (iii) vested benefit and welfare entitlements; (iv) unemployment
 compensation, (v) workers compensation benefits, (vi) accrued vacation time (if consistent
 with Company policy), and (vii) Base Salary through date of termination. Notwithstanding
 anything in this Agreement to the contrary, if Employee is employed by the Company for an
 entire calendar year and is terminated for any reason prior to the payment of the Performance
 Bonus for that year, if any, the Company hereby agrees to pay Employee any Performance Bonus
 that he would have otherwise been entitled to for that prior year, simultaneous with the
 payment of such bonuses to the Company s employees, and (viii) continued vesting of options
 and restricted stock as may be provided in accordance with the provisions of this Agreement
 or any incentive plan. Upon payment by the Company of the amounts described in Section 12(f)
 and this Section 12(g), Employee will not be entitled to receive any further compensation
 or benefits from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Change in Control</u>** . In the event of loss of employment due to Change of Control, employee
 will be entitled to all owed salary and benefits, as per the terms of Section 12(d), Termination
 by the Company Other than for Cause.

13. **<u>Indemnification.</u>** The Employee shall continue to be covered by the Certificate of Incorporation and/or the Bylaws of the Company with respect to matters occurring on or prior to the date of termination of the Employee's employment with the Company, subject to all the provisions of Nevada and Federal law and the Certificate of Incorporation and Bylaws of the Company then in effect. Such reasonable expenses, including attorneys' fees, that may be covered by the Certificate of Incorporation and/or Bylaws of the Company shall be paid by the Company on a current basis in accordance with such provision, the Company's Certificate of Incorporation, and Nevada law. To the extent that any such payments by the Company pursuant to the Company's Certificate of Incorporation and/or Bylaws may be subject to repayment by the Employee pursuant to the provisions of the Company's Certificate of Incorporation or Bylaws, or pursuant to Nevada or Federal law, such repayment shall be due and payable by the Employee to the Company within three (3) months after the termination of all proceedings, if any, which relate to such repayment and to the Company's affairs for the period prior to the date of termination of the Employee's employment with the Company and as to which Employee has been covered by such applicable provisions.

14. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Survival</u>** .
 The provisions of this Agreement shall survive the termination or expiration of this Agreement
 for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Entire Agreement</u>** . This Agreement constitutes the entire agreement of the parties pertaining
 to its subject matter and supersedes all prior or contemporaneous agreements or understandings
 between the parties pertaining to the subject matter of this Agreement, and there are no
 promises, agreements, conditions, undertakings, warranties, or representations, whether written
 or oral, expressed or implied, between the parties other than as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Modification</u>** .
 This Agreement may not be amended or modified, or any provision waived, unless in writing
 and signed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Waiver</u>** .
 Failure of a party to enforce one or more of the provisions of this Agreement or to require
 at any time performance of any of the obligations of this Agreement will not be construed
 to be a waiver of such provisions by such party nor to in any way affect the validity of
 this Agreement or such party s right thereafter to enforce any provision of this Agreement,
 nor to preclude such party from taking any other action at any time which it would legally
 be entitled to take.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Successors and Assigns</u>** . This Agreement may not be assigned or the duties delegated unless in
 writing and signed by both parties, except for any assignment by the Company occurring by
 operation of law or the transfer of substantially all of the Company s assets. Subject to
 the foregoing, this Agreement will inure to the benefit of, and be binding upon, the parties
 and their heirs, beneficiaries, personal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Notices</u>** .
 Any notice, demand, consent, agreements, request, or other communication required or permitted
 under this Agreement will be in writing and will be, (i) mailed by first-class mail, registered
 or certified, return receipt requested, postage prepaid, (ii) delivered personally by independent
 courier, or (iii) transmitted by facsimile, to the parties at the addressee as follows (or
 at such other addresses as will be specified by the parties by like notice).

**If to Employee, then to:**

**If to the Company, then to:**

1701 Jel Wade Dr, Wilmington, NC 28401

Each party may designate by notice in writing a new address to which any notice, demand, consent, agreement, request or communication may thereafter be given, served or sent. Each notice, demand, consent, agreement, request or communication that is mailed, hand delivered or transmitted in the manner described above will be deemed received for all purposes at such time as it is delivered to the addresses (with the return receipt, the courier delivery receipt or the telecopier answer back confirmation being deemed conclusive evidence of such delivery) or at such time as deliver is refused by the addressee upon presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Severability</u>** .
 If any provision of this Agreement is held to be invalid or unenforceable by a court of competent
 jurisdiction, then such invalidity or unenforceability will not affect the validity and enforceability
 of the other provisions of this Agreement and the provision held to be invalid or unenforceable
 will be enforced as nearly as possible according to its original terms and intent to eliminate
 such invalidity or unenforceability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Counterparts</u>** .
 This Agreement may be executed in any number of counterparts, and all counterparts will collectively
 be deemed to constitute a single binding agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Binding Effect/Assignment.</u>** This Agreement shall be binding upon the parties hereto, their
 heirs, legal representatives, successors, and assigns. This Agreement shall not be assignable
 by the Employee but shall be assignable by the Company in connection with the sale, transfer,
 or other disposition of its business or to any of the Company's affiliates controlled
 by or under common control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Governing Law; Venue</u>** . This Agreement will be governed by the laws of the State of North Carolina,
 without regard to its conflicts of law principles. Employee consents to the jurisdiction
 of any state or federal court located within the State of North Carolina, agrees that such
 courts shall be the exclusive jurisdiction for any suit, action, or legal proceeding arising
 directly or indirectly out of this Agreement, and consents that all service of process may
 be made by registered or certified mail directed to Employee at the address in Section 14(f)
 of this Agreement. Employee waives any objection which Employee may have based on lack of
 personal jurisdiction or improper venue or forum non-conveniens to any suit or proceeding
 instituted by the Company under this Agreement in any state or federal court located within
 North Carolina and consents to the granting of such legal or equitable relief as is deemed
 appropriate by the court. This provision is a material inducement for the Company to enter
 into this Agreement with Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Participation of Parties</u>** . The parties acknowledge that this Agreement and all matters contemplated
 herein have been negotiated between both of the parties and their respective legal counsel
 and that both parties have participated in the drafting and preparation of this Agreement
 and Exhibit "A" from the commencement of negotiations at all times through execution.
 Therefore, the parties agree that this Agreement and Exhibit "A" will be interpreted
 and construed without reference to any rule requiring that this Agreement and Exhibit "A"
 be interpreted or construed against the party causing it to be drafted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.  **<u>Injunctive Relief</u>** . It is possible that remedies at law may be inadequate and, therefore, the
 parties will be entitled to equitable relief including, without limitation, injunctive relief,
 specific performance or other equitable remedies in addition to all other remedies provided
 hereunder or available to the parties hereto at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.  **<u>Waiver of Jury Trial</u>** . EACH OF THE COMPANY AND EMPLOYEE WAIVES ALL RIGHT TO TRIAL BY JURY
 IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PROVISIONS OF
 THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.  **<u>Right to Setoff</u>** . The Company will be entitled, in its discretion and in addition to any
 other remedies it may have in law or in equity, to set-off against any amounts payable to
 Employee under this Agreement or otherwise the amount of any obligations of Employee to the
 Company under this Agreement that are not paid by Employee when due. In the event of any
 such setoff, the Company will promptly provide the Employee with a written explanation of
 such setoff, and an opportunity to register a written protest thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o.  **<u>Litigation</u>** :
 Prevailing Party. In the event of any litigation, administrative proceeding, arbitration,
 mediation or other proceeding with regard to this Agreement, the prevailing party will be
 entitled to receive from the non-prevailing party and the non-prevailing party will pay upon
 demand all court costs and all reasonable fees and expenses of counsel and paralegals for
 the prevailing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p.  **<u>Descriptive Headings</u>** . The descriptive headings herein are inserted for convenience only and are
 not intended to be part of or to affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q.  **<u>Further Assurances.</u>** All parties hereto shall execute and deliver such other instruments and
 do such other acts as may be necessary to carry out the intent and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r.  **<u>Completeness and Modification.</u>** This Agreement constitutes the entire understanding between the
 parties hereto superseding all prior and contemporaneous agreements or understandings among
 the parties hereto concerning the Employment Agreement. This Agreement may be amended, modified,
 superseded, or canceled, and any of the terms, covenants, representations, warranties, or
 conditions hereof may be waived, only by a written instrument executed by the parties or,
 in the case of a waiver, by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s.  **<u>Superseding Agreement.</u>** This Agreement supersedes all prior or contemporaneous agreements, whether
 written or oral, and constitutes the entire understanding between the parties. Any changes
 to this Agreement must be in writing and signed by both parties. If there is any conflict
 between this Agreement and any other document or agreement related to the subject matter,
 this Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t.  **<u>Approval of Named Officers.</u>** Notwithstanding any provision to the contrary, any compensation,
 incentive, or benefit arrangement for Named Officers of the company shall be deemed effective
 only upon the express approval of the Board of Directors, following a recommendation from
 the Compensation Committee

EXECUTED as of the date set forth in the first paragraph of this Agreement.

**THE EMPLOYEE**

---

| | |
|:---|:---|
| By: | */s/ Chad Corbin*  |
| Chad Corbin | Chad Corbin |

---

**THE COMPANY**

OFF THE HOOK YS, INC.

---

| | |
|:---|:---|
| By: | */s/ Brian S. John*  |
| Brian S. John, CEO | Brian S. John, CEO |

---

**<u>APPENDIX A</u>**

Bonus Targets and Performance Goals

This Appendix sets forth the performance metrics and bonus structure applicable to the Employee's annual Performance Bonus as referenced in Section 4(b) of the Agreement.

**<u>Bonus Structure:</u>**

Bonuses to be determined by the Compensation Committee and Board annually.

## Exhibit 10.6

**Exhibit 10.6**

**<u>OFF THE HOOK YS, INC</u>**

**EMPLOYMENT AGREEMENT - EXEMPT EMPLOYEE**

**THIS EMPLOYMENT AGREEMENT** (the "**Agreement**") is entered into on <u>May 9</u>, 2025, (the "**Execution Date**"), by and between Off The Hook YS, Inc. a Nevada corporation, whose principal place of business is 1701 Jel Wade Dr, Wilmington, NC 28401 (the "**Company**", or "**Employer**") and <u>Blake Phillips</u>, an individual whose mailing address is <u>[ ]</u> (the "**Employee**"). This Agreement shall become effective only upon the completion of the Company's Initial Public Offering (IPO) (the "**Effective Date**"). No obligations under this Agreement, including the commencement of employment, shall arise until the Effective Date.

**<u>RECITALS</u>**

**WHEREAS**, the Company desires to employ Employee and Employee desires to be employed by the Company on the terms and subject to the conditions set forth in this Agreement.

**ACCORDINGLY**, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are acknowledged, the Company and Employee agree as follows:

**<u>TERMS</u>**

1. **<u>Employment</u>**. The Company agrees to employ the Employee, and the Employee agrees to be employed by the Company, on the terms and subject to the conditions set forth in this Agreement, commencing on the Effective Date.

2. **<u>Term</u>**. The term of Employee's employment under this Agreement shall commence on the Effective Date and shall continue for a period of three (3) years, automatically renewing for successive one (1) year periods unless terminated in accordance with this Agreement (the "**Term**").

3. <u>Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Position</u>** .
 During the Term, Employee will serve as <u>Chief Operating Officer</u> of the Company. Subject
 to the direction of the <u>President</u> of the Company. Employee will perform all duties
 commensurate with his position and such other tasks as may be assigned to him by the <u>President, CEO,</u> or the Board of Directors of the Company (the "**Board** "). If requested
 by the Company, Employee will serve as an officer or director of any subsidiary of the Company,
 without additional compensation, provided, however, that if Employee is asked to serve as
 a director of any subsidiary of the Company, Employee may refuse to accept, or resign from,
 such appointment without causing a breach of this Agreement by Employee. If asked to serve
 as an officer or director of a subsidiary of the Company, Employee will be provided those
 officer and director indemnifications provided to other officers and directors of the Company
 and any such subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Full Time and Attention</u>** . During the Term, Employee will devote his/her full business time
 and energies to the business and affairs of the Company and its subsidiaries and will use
 his/her best efforts, skills and abilities solely to promote the interests of the Company
 and its subsidiaries and to diligently and competently perform his duties, all in a manner
 in compliance with all applicable laws and regulations and in accordance with applicable
 policies and procedures adopted or amended from time to time by the Company, including, without
 limitation, the Company Employee Handbook, a copy of which Employee acknowledges having received.
 Notwithstanding the foregoing, Employee may serve as a director on up to two and not more
 than two boards of directors of other companies, so long as such service does not interfere
 with Employee's performance of Employee's duties to the Company. Employee's
 primary place of employment shall be at the Company's primary place of business in <u>Wilmington, NC</u>; however, Employee agrees and acknowledges that a material part of
 the time devoted to his duties and position hereunder will require that Employee travel from
 time to time on behalf of the Company.

4. <u>Compensation and Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Salary</u>** .
 During the Term of this Agreement, the Employee shall be paid an initial base salary (the
 "Base Salary") paid twice monthly, at an annualized rate of <u>Five Hundred Thousand Dollars ($500,000</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Performance Bonus</u>** . The amount of the annual bonus payable to Employee for a year (if any) shall
 be based upon the targets and performance goals set forth in Appendix A to this Agreement
 (the "**Bonus Targets** "), as may be amended from time to time by the Compensation
 Committee and the Board of Directors, in their sole discretion. The Compensation Committee
 and the Board of Directors, in their sole discretion, may also award additional compensation
 to the Employee for outstanding performance or achievement. Any bonuses payable pursuant
 to this Section 4(b) shall be referred to herein as Performance Bonuses. If the Employee's
 employment terminates prior to December 31 of any year, the Employee shall be entitled to
 a pro-rata bonus for such partial calendar year, as determined by the Compensation Committee
 in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Pay Increase</u>** . The Employee's base salary may be increased at any time, at the Company's
 sole discretion, based on the Employee's performance, contributions to the Company,
 and other factors deemed relevant by the Employer. Any such increase shall be communicated
 to the Employee in writing and shall take effect on a date determined by the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Benefits</u>** .
 During the Term, Employee will be entitled to participate in or benefit from, in accordance
 with the eligibility and other provisions thereof, such life, health, medical, accident,
 dental and disability insurance, a 401(k) plan, and an Employee Stock Ownership Plan. The
 Company retains the right to terminate or amend any such plans from time to time in its sole
 discretion. For more information, refer to the Off The Hook YS Employee Handbook.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Cost of Living Adjustment.</u>** The Employee's base salary shall be subject to an annual
 Cost of Living Adjustment (the "**COLA**") based on the Consumer Price Index
 (CPI) for All Urban Consumers (CPI-U) for the previous year. The COLA shall be calculated
 as a percentage increase and shall take effect on the first day of each calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Stock Options or Restricted Stock.</u>** Under this Agreement, the Employee's compensation
 may include stock options or restricted stock to be issued in accordance with the Company's
 ESOP stock incentive plan. Specific details about the issuance of these equity awards, such
 as the grant date, vesting schedule, and strike price. Employee shall refer to this appendix
 and the 2025 Equity Incentive Plan for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Vacation.</u>** The Company offers its employees two different time-off plans: Paid Time Off ()"**PTO** ")
 and Responsible Time Off ()"**RTO** "). The RTO plan is offered to benefit-eligible
 exempt employees in the United States, while the accrued PTO plan is offered to non-exempt
 (hourly) employees in the United States. Please refer to the Off The Hook YS Employee Handbook
 for specific details on each plan, including eligibility criteria and accrual rates. We are
 committed to providing our employees with comprehensive and competitive benefits packages,
 including generous time-off policies, to support their well-being and work-life balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Holidays.</u>** The Company shall provide the Employee with a certain number of paid holidays each calendar
 year, as determined by the U.S. federal holidays designated by Congress. While the specific
 observance dates may change from year to year, all Federal bank and market holidays shall
 be observed by the Company as paid vacation days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Business Expense Reimbursement</u>** . The Company will reimburse Employee, in accordance with the
 Company's expense reimbursement policies as may be established from time to time by
 the Company, for all pre-approved and reasonable out-of-pocket travel and other expenses
 actually incurred or paid by Employee during the Term in the performance of his/her services
 under this Agreement, upon presentation of expense statements or vouchers or such other supporting
 information as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Cell Phone Usage Reimbursement.</u>** The Employee will receive a $125 monthly stipend for business
 use of their personal cell phone. The stipend doesn't cover the device cost or the
 full monthly bill. To qualify, the Employee must agree to the Bring Your Own Device Policy.
 This policy covers data protection, security, and acceptable use. By accepting the stipend,
 the Employee agrees to comply with the policy and use their phone in line with company standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Withholding</u>** .
 All payments under this Agreement will be subject to applicable taxes and required withholdings.

5. **<u>Background.</u>** Off The Hook YS understands the importance of creating a safe and secure work environment for all employees. As such, the Company reserves the right to conduct background investigations and/or reference checks on all potential employees. Please note that any job offer extended by the Company is contingent upon the successful completion of such checks.

6. **<u>Policies.</u>** Off The Hook YS employees are expected to follow the company's rules and standards to create a safe and respectful workplace for everyone. To ensure compliance with these standards, employees will receive a copy of the Off The Hook YS Employee Handbook, along with other relevant company policies, such as Regulation FD and Insider Trading Policies. The employee acknowledges that the terms of this contract are subject to and incorporates the policies and procedures set forth in the company's employee handbook and any other applicable policies, which the employee agrees to review and abide by. The contract will not become effective until the employee signs and acknowledges receipt of the employee handbook and any other applicable policies.

7. **<u>Representations of Employee</u>**. Employee represents and warrants that he/she is not, (i) a party to any enforceable employment agreement or other arrangement, whether written or oral, with any past employer, that would prevent or restrict Employee's employment with the Company; (ii) a party to or bound by any agreement, obligation or commitment, or subject to any restriction, including, but not limited to, confidentiality agreements, restrictive covenants or non-compete and non-solicitation covenants, except for agreements with the Company or its affiliates; or (iii) involved with any professional endeavors which in the future may possibly adversely affect or interfere with the business of the Company, the full performance by Employee of his duties under this Agreement or the exercise of his best efforts hereunder.

8. **<u>Intellectual Property</u>**. Any and all material eligible for copyright or trademark protection and any and all ideas and inventions ("**Intellectual Property**"), whether or not patentable, in any such case solely or jointly made, developed, conceived or reduced to practice by Employee (whether at the request or suggestion of any officer or employee of the Company or otherwise, whether alone or in conjunction with others, and whether during regular hours of work or otherwise) during the Term which arise from the fulfillment of Employee s duties hereunder and which may be directly or indirectly useful in the business of the Company will be promptly and fully disclosed in writing to the Company. The Company will have the entire right, title and interest (both domestic and foreign) in all such Intellectual Property, which is the sole property of the Company. All papers, drawings, models, data and other materials relating to any such idea, material or invention will be included in the definition of Confidential Information, will remain the sole property of the Company, and Employee will return to the Company all such papers, and all copies thereof, including all originals and copies contained in computer hard drives or other electronic or machine readable format, upon the earlier of the Company s request thereof, or the expiration or termination of Employee's employment hereunder. Employee will execute, acknowledge and deliver to the Company any and all further assignments, contracts or other instruments the Company deems necessary or expedient, without further compensation, to carry out and effectuate the intents and purposes of the Agreement and to vest in the Company each and all of the rights of the Company in the Intellectual Property.

9. <u>Restrictive Covenant and Non-Disclosure of Confidential Information.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Non-Compete Agreement</u>** . The Employee acknowledges and agrees that Company and its subsidiary and
 affiliated companies (collectively, the "**Companies**") existing or contemplated
 businesses (collectively, the "**Business**") has invested significant time,
 effort, and resources into developing its business relationships, proprietary information,
 and competitive advantage. To protect these interests, the Employee agrees that, for a period
 of two (2) years following the termination of their employment for any reason (the "**Restricted Period** "), the Employee shall not, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Employment with Competitors</u>**. Engage in, own, manage, operate, control, be employed by, consult for, or otherwise participate in any business that competes with the Company's business as conducted at the time of termination ("**Competitive Business Activities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Employment with Clients or Business Partners</u>**<u>.</u> Accept employment with, provide services to, or otherwise engage in any business relationship with any existing client, customer, vendor, supplier, distributor, contractor, or other business partner of the Company with whom the Employee had contact or knowledge of during their employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Solicitation of Clients.</u>** Solicit, divert, or attempt to induce any client or customer of the Company to discontinue, reduce, or modify their business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **<u>Solicitation of Employees.</u>** Solicit or encourage any employee, consultant, or contractor of the Company to terminate their relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Non-Disclosure of Proprietary Information</u>** . The Employee acknowledges that they may have access to
 confidential and proprietary information of the Company ("Proprietary Information").
 During the Restricted Period, the Employee shall not use or disclose any Proprietary Information
 for their own benefit or for the benefit of any **client, competitor, or third party** engaged
 in Competitive Business Activities.

For the purposes of this Agreement, "Proprietary Information" includes, but is not limited to, trade secrets, financial information, pricing structures, business strategies, marketing plans, research and development data, operational processes, client lists, supplier agreements, and any other confidential business information not generally known to the public. The Employee agrees that all documents, records, and materials containing such information shall be returned to the Company upon termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Documents.</u>** "**Documents**" shall mean all original written, recorded, or graphic matters
 whatsoever, and any and all copies thereof, including, but not limited to: papers; books;
 records; tangible things; correspondence; communications; telex messages; memoranda; work
 papers; reports; affidavits; statements; summaries; analyses; evaluations; client records
 and information; agreements; agendas; advertisements; instructions; charges; manuals; brochures;
 publications; directories; industry lists; schedules; price lists; client lists; statistical
 records; training manuals; computer printouts; books of account, records and invoices reflecting
 business operations; all things similar to any of the foregoing however denominated. In all
 cases where originals are not available, the term "Documents" shall also mean
 identical copies of original documents or non-identical copies thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Company's Clients.</u>** The "**Company's Clients**" shall be deemed to be any
 partnerships, corporations, professional associations or other business organizations with
 whom the Company has conducted business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Competitive Business Activities.</u>** The term "**Competitive Business Activities** "
 as used herein shall be deemed to mean the business of the Company at the time of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Covenants as Essential Elements of this Agreement.</u>** It is understood by and between the parties
 hereto that the foregoing covenants contained in Sections 9(a) and (b) are essential elements
 of this Agreement, and that but for the agreement by the Employee to comply with such covenants,
 the Company would not have agreed to enter into this Agreement. Such covenants by the Employee
 shall be construed to be agreements independent of any other provisions of this Agreement.
 The existence of any other claim or cause of action, whether predicated on any other provision
 in this Agreement, or otherwise, because of the relationship between the parties shall not
 constitute a defense to the enforcement of such covenants against the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Survival After Termination of Agreement.</u>** Notwithstanding anything to the contrary contained
 in this Agreement, the covenants in Sections 9(a) and (b) shall survive the termination of
 this Agreement and the Employee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Remedies.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Employee acknowledges and agrees that
 the Company's remedy at law for a breach or threatened breach of any of the provisions
 of Section 9(a) or (b) herein would be inadequate and a breach thereof will cause irreparable
 harm to the Company. In recognition of this fact, in the event of a breach by the Employee
 of any of the provisions of Section 9(a) or (b), the Employee agrees that, in addition to
 any remedy at law available to the Company, including, but not limited to monetary damages,
 all rights of the Employee to payment or otherwise under this Agreement and all amounts then
 or thereafter due to the Employee from the Company under this Agreement may be terminated
 and the Company, without posting any bond, shall be entitled to obtain, and the Employee
 agrees not to oppose the Company's request for equitable relief in the form of specific
 performance, temporary restraining order, temporary or permanent injunction or any other
 equitable remedy which may then be available to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Employee acknowledges
 that the granting of a temporary injunction, temporary restraining order, or permanent injunction
 merely prohibiting the use of Proprietary Information would not be an adequate remedy upon
 breach or threatened breach of Section 9(a) or (b) and consequently agrees, upon proof of
 any such breach, to granting of injunctive relief prohibiting any form of competition with
 the Company. Nothing contained herein shall be construed as prohibiting the Company from
 pursuing any other remedies available to it for such breach or threatened breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Prohibition on Undisclosed Transactions and Conflicts of Interest</u> 

The Employee agrees that, during the Term of this Agreement, they shall not, directly or indirectly, engage in, participate in, or benefit from any transaction, agreement, or business opportunity that is related to or competitive with the business of the Company, unless such engagement has been fully disclosed in writing to the Company and expressly approved in advance by the Board of Directors. This includes, but is not limited to, accepting commissions, fees, equity, or other compensation in connection with any business opportunity that falls within the scope of the Company's current or planned operations. Any failure to disclose such arrangements shall be deemed a material breach of this Agreement and grounds for immediate termination for cause.

10. **<u>Reasonable Restrictions</u>**. The parties acknowledge and agree that the restrictions set forth in Sections 8 and 9 of this Agreement are reasonable for the purpose of protecting the value of the business and goodwill of the Companies. It is the desire and intent of the parties that the provisions of Sections 8 and 9 be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. If any particular provisions or portions of Sections 8 or 9 are adjudicated to be invalid or unenforceable, then such section will be deemed amended to delete such provision or portion adjudicated to be invalid or unenforceable; provided, however, that such amendments apply only with respect to the operation of such section in the particular jurisdiction in which such adjudication is made.

11. **<u>Breach or Threatened Breach</u>**. The parties acknowledge and agree that the performance of the obligations under Section 8 and 9 by Employee are special, unique and extraordinary in character, and that in the event of the breach or threatened breach by Employee of the terms and conditions of Sections 8 and 9, the Companies will suffer irreparable injury and that monetary damages would not provide an adequate remedy at law and that no remedy at law may exist. Accordingly, in the event of such breach or threatened breach, the Company will be entitled, if it so elects and without the posting of any bond or security, to institute and prosecute proceedings in any court of competent jurisdiction, in law and in equity, to obtain damages for any breach of Sections 8 or 9 or to enforce the specific performance of this Agreement by Employee or to enjoin Employee from breaching or attempting to breach Sections 8 or 9. In the event the Company believes that the Employee has breached Employee s obligations under Sections 8 or 9, or threatens to do so, it shall promptly provide the Employee written notice of such belief setting forth the basis for its belief and, (unless under exigent circumstances, as determined by the Company at its sole discretion, it would harm the Companies to delay the institution of legal proceedings) five (5) business days to respond to the notice, prior to the initiation of legal proceedings.

If Employee breaches or violates any of the provisions of Sections 8 or 9, the running of the Period of Non-Compete will be tolled with respect to Employee during the continuance of any actual breach or violation. In addition to any other rights or remedies the Company may have under this Agreement or applicable law, the Company will be entitled to receive from Employee reimbursement for all attorney fees, costs, expenses and court costs incurred by the Companies in enforcing this Agreement and will have the right and remedy to require Employee to account for and pay over to the Company all compensation, profit, monies, accruals or other benefits derived or received, directly or indirectly, by Employee from the action constituting a breach or violation of this Section.

12. **<u>Termination</u>**. The Employee s employment under this Agreement may be terminated upon the occurrence of any of the events described in, and subject to the terms of this Section 12:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Death</u>** . Immediately
 and automatically upon the death of Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Disability</u>** .
 At the Company's option, immediately upon written notice if Employee suffers a permanent
 disability, meaning any incapacity, illness or disability of Employee which renders Employee
 mentally or physically unable to perform his duties under this Agreement for a continuous
 period of sixty (60) days, or one hundred twenty (120) days (whether or not consecutive),
 during the Term, as reasonably determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Termination for Cause</u>** . At the Company s option, immediately upon notice to Employee, upon the
 occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Employee being convicted of any felony (whether
 or not against the Company or its subsidiaries or affiliates);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material failure of Employee to perform
 Employee s responsibilities after ten (10) days written notice given by an executive officer
 of the Company to Employee, which notice shall identify the Employee s failure in sufficient
 detail and grant Employee an opportunity to cure such failure within such ten (10) day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a breach by Employee
 of any of his obligations under the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material act of dishonesty or other
 misconduct by Employee against the Company or any of its subsidiaries or affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a material violation by Employee of any
 of the policies or procedures of the Company or any of its subsidiaries or affiliates, including
 without limitation the set forth in Off The Hook YS Company Employee Handbook, provided,
 however, that if such violation is curable, then Employee will be given ten (10) days written
 notice and the opportunity to cure such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Termination Without Cause</u>** . At the Company s option for any reason, or no reason, upon five (5)
 days written notice to Employee given by the CEO or Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Termination With Good Reason</u>** . At Employee's option, upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in the Employee's
 base compensation or Performance Bonus opportunity or benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution
 in the Employee s authority, duties, or responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material diminution in the budget over
 which the Employee retains authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a change in the geographic location to
 one outside North Carolina at which the Employee must perform the services under this Agreement;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 other action or inaction that constitutes a material breach by the Company of this Agreement.

For purposes of this Agreement, Good Reason shall not be deemed to exist unless the Employee's termination of employment for Good Reason occurs within 2 years following the initial existence of one of the conditions specified in clauses (i) through (v) above, the Employee provides the Company with written notice of the existence of such condition within 90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Payments After Termination</u>** . If Employee s employment hereunder is terminated for the reasons
 set forth in Sections 12(a) or 12(b), then Employee or Employee's estate will receive
 the Base Salary and any Performance Bonus earned through the date of death or disability,
 and all of Employee s stock options and restricted stock shall immediately vest. If the Company
 terminates Employee's employment hereunder for the reasons set forth in Section 12(c),
 then (i) Employee will receive his Base Salary through the date of termination and (ii) Employee
 will forfeit any entitlement that Employee may have to receive any Performance Bonus. If
 Employee s employment hereunder is terminated for the reason set forth in Section 12(d) or
 12(e), then (i) Employee will receive his Base Salary, his Average Performance Bonus (as
 defined below) and benefits set forth in Section 4(b) hereof (collectively, with the payment
 of the Base Salary and Average Performance Bonus, the Severance Benefits), over a period
 of twelve (12) months from the date of termination (the Severance Period). The Average Performance
 Bonus shall mean the average of the Performance Bonuses the Employee has received during
 the last three complete calendar years for which the Employee was an employee of the Company.
 The Severance Benefit shall be payable in accordance with the Company s payroll procedures
 and subject to applicable withholdings, and subject to Employee complying with the obligations
 set forth in Section 8 and 9. Any severance benefits payable to Employee also shall be conditioned
 upon Employee s execution of a general release of claims in a form to be provided by the
 Company, and the release becoming effective within 45 days after the date on which Employee
 s employment terminates. Payment of any severance benefits shall be delayed until the 46th
 day following the date on which Employee's employment terminates (the "**Payment Commencement Date** "), and any severance benefits that are so delayed shall be paid
 on the Payment Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>General</u>** .
 Notwithstanding anything to the contrary set forth in this Agreement, the provision of payments
 after termination in accordance with the provisions of Section 12 (f) above, shall not be
 a bar to the Employee s continued entitlement from the Company of (i) reimbursements of proper
 expenses, (ii) expense allowances, (iii) vested benefit and welfare entitlements; (iv) unemployment
 compensation, (v) workers compensation benefits, (vi) accrued vacation time (if consistent
 with Company policy), and (vii) Base Salary through date of termination. Notwithstanding
 anything in this Agreement to the contrary, if Employee is employed by the Company for an
 entire calendar year and is terminated for any reason prior to the payment of the Performance
 Bonus for that year, if any, the Company hereby agrees to pay Employee any Performance Bonus
 that he would have otherwise been entitled to for that prior year, simultaneous with the
 payment of such bonuses to the Company s employees, and (viii) continued vesting of options
 and restricted stock as may be provided in accordance with the provisions of this Agreement
 or any incentive plan. Upon payment by the Company of the amounts described in Section 12(f)
 and this Section 12(g), Employee will not be entitled to receive any further compensation
 or benefits from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Change in Control</u>** . In the event of loss of employment due to Change of Control, employee
 will be entitled to all owed salary and benefits, as per the terms of Section 12(d), Termination
 by the Company Other than for Cause.

13. **<u>Indemnification.</u>** The Employee shall continue to be covered by the Certificate of Incorporation and/or the Bylaws of the Company with respect to matters occurring on or prior to the date of termination of the Employee's employment with the Company, subject to all the provisions of Nevada and Federal law and the Certificate of Incorporation and Bylaws of the Company then in effect. Such reasonable expenses, including attorneys' fees, that may be covered by the Certificate of Incorporation and/or Bylaws of the Company shall be paid by the Company on a current basis in accordance with such provision, the Company's Certificate of Incorporation, and Nevada law. To the extent that any such payments by the Company pursuant to the Company's Certificate of Incorporation and/or Bylaws may be subject to repayment by the Employee pursuant to the provisions of the Company's Certificate of Incorporation or Bylaws, or pursuant to Nevada or Federal law, such repayment shall be due and payable by the Employee to the Company within three (3) months after the termination of all proceedings, if any, which relate to such repayment and to the Company's affairs for the period prior to the date of termination of the Employee's employment with the Company and as to which Employee has been covered by such applicable provisions.

14. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Survival</u>** .
 The provisions of this Agreement shall survive the termination or expiration of this Agreement
 for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Entire Agreement</u>** . This Agreement constitutes the entire agreement of the parties pertaining
 to its subject matter and supersedes all prior or contemporaneous agreements or understandings
 between the parties pertaining to the subject matter of this Agreement, and there are no
 promises, agreements, conditions, undertakings, warranties, or representations, whether written
 or oral, expressed or implied, between the parties other than as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.  **<u>Modification</u>** .
 This Agreement may not be amended or modified, or any provision waived, unless in writing
 and signed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.  **<u>Waiver</u>** .
 Failure of a party to enforce one or more of the provisions of this Agreement or to require
 at any time performance of any of the obligations of this Agreement will not be construed
 to be a waiver of such provisions by such party nor to in any way affect the validity of
 this Agreement or such party s right thereafter to enforce any provision of this Agreement,
 nor to preclude such party from taking any other action at any time which it would legally
 be entitled to take.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Successors and Assigns</u>** . This Agreement may not be assigned or the duties delegated unless in
 writing and signed by both parties, except for any assignment by the Company occurring by
 operation of law or the transfer of substantially all of the Company s assets. Subject to
 the foregoing, this Agreement will inure to the benefit of, and be binding upon, the parties
 and their heirs, beneficiaries, personal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Notices</u>** .
 Any notice, demand, consent, agreements, request, or other communication required or permitted
 under this Agreement will be in writing and will be, (i) mailed by first-class mail, registered
 or certified, return receipt requested, postage prepaid, (ii) delivered personally by independent
 courier, or (iii) transmitted by facsimile, to the parties at the addressee as follows (or
 at such other addresses as will be specified by the parties by like notice).

**If to Employee, then to:**

**If to the Company, then to:**

1701 Jel Wade Dr, Wilmington, NC 28401

Each party may designate by notice in writing a new address to which any notice, demand, consent, agreement, request or communication may thereafter be given, served or sent. Each notice, demand, consent, agreement, request or communication that is mailed, hand delivered or transmitted in the manner described above will be deemed received for all purposes at such time as it is delivered to the addresses (with the return receipt, the courier delivery receipt or the telecopier answer back confirmation being deemed conclusive evidence of such delivery) or at such time as deliver is refused by the addressee upon presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Severability</u>** .
 If any provision of this Agreement is held to be invalid or unenforceable by a court of competent
 jurisdiction, then such invalidity or unenforceability will not affect the validity and enforceability
 of the other provisions of this Agreement and the provision held to be invalid or unenforceable
 will be enforced as nearly as possible according to its original terms and intent to eliminate
 such invalidity or unenforceability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  **<u>Counterparts</u>** .
 This Agreement may be executed in any number of counterparts, and all counterparts will collectively
 be deemed to constitute a single binding agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.  **<u>Binding Effect/Assignment.</u>** This Agreement shall be binding upon the parties hereto, their
 heirs, legal representatives, successors, and assigns. This Agreement shall not be assignable
 by the Employee but shall be assignable by the Company in connection with the sale, transfer,
 or other disposition of its business or to any of the Company's affiliates controlled
 by or under common control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.  **<u>Governing Law; Venue</u>** . This Agreement will be governed by the laws of the State of North Carolina,
 without regard to its conflicts of law principles. Employee consents to the jurisdiction
 of any state or federal court located within the State of North Carolina, agrees that such
 courts shall be the exclusive jurisdiction for any suit, action, or legal proceeding arising
 directly or indirectly out of this Agreement, and consents that all service of process may
 be made by registered or certified mail directed to Employee at the address in Section 14(f)
 of this Agreement. Employee waives any objection which Employee may have based on lack of
 personal jurisdiction or improper venue or forum non-conveniens to any suit or proceeding
 instituted by the Company under this Agreement in any state or federal court located within
 North Carolina and consents to the granting of such legal or equitable relief as is deemed
 appropriate by the court. This provision is a material inducement for the Company to enter
 into this Agreement with Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.  **<u>Participation of Parties</u>** . The parties acknowledge that this Agreement and all matters contemplated
 herein have been negotiated between both of the parties and their respective legal counsel
 and that both parties have participated in the drafting and preparation of this Agreement
 and Exhibit "A" from the commencement of negotiations at all times through execution.
 Therefore, the parties agree that this Agreement and Exhibit "A" will be interpreted
 and construed without reference to any rule requiring that this Agreement and Exhibit "A"
 be interpreted or construed against the party causing it to be drafted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.  **<u>Injunctive Relief</u>** . It is possible that remedies at law may be inadequate and, therefore, the
 parties will be entitled to equitable relief including, without limitation, injunctive relief,
 specific performance or other equitable remedies in addition to all other remedies provided
 hereunder or available to the parties hereto at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.  **<u>Waiver of Jury Trial</u>** . EACH OF THE COMPANY AND EMPLOYEE WAIVES ALL RIGHT TO TRIAL BY JURY
 IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PROVISIONS OF
 THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.  **<u>Right to Setoff</u>** . The Company will be entitled, in its discretion and in addition to any
 other remedies it may have in law or in equity, to set-off against any amounts payable to
 Employee under this Agreement or otherwise the amount of any obligations of Employee to the
 Company under this Agreement that are not paid by Employee when due. In the event of any
 such setoff, the Company will promptly provide the Employee with a written explanation of
 such setoff, and an opportunity to register a written protest thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o.  **<u>Litigation</u>** :
 Prevailing Party. In the event of any litigation, administrative proceeding, arbitration,
 mediation or other proceeding with regard to this Agreement, the prevailing party will be
 entitled to receive from the non-prevailing party and the non-prevailing party will pay upon
 demand all court costs and all reasonable fees and expenses of counsel and paralegals for
 the prevailing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p.  **<u>Descriptive Headings</u>** . The descriptive headings herein are inserted for convenience only and are
 not intended to be part of or to affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q.  **<u>Further Assurances.</u>** All parties hereto shall execute and deliver such other instruments and
 do such other acts as may be necessary to carry out the intent and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r.  **<u>Completeness and Modification.</u>** This Agreement constitutes the entire understanding between the
 parties hereto superseding all prior and contemporaneous agreements or understandings among
 the parties hereto concerning the Employment Agreement. This Agreement may be amended, modified,
 superseded, or canceled, and any of the terms, covenants, representations, warranties, or
 conditions hereof may be waived, only by a written instrument executed by the parties or,
 in the case of a waiver, by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s.  **<u>Superseding Agreement.</u>** This Agreement supersedes all prior or contemporaneous agreements, whether
 written or oral, and constitutes the entire understanding between the parties. Any changes
 to this Agreement must be in writing and signed by both parties. If there is any conflict
 between this Agreement and any other document or agreement related to the subject matter,
 this Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t.  **<u>Approval of Named Officers.</u>** Notwithstanding any provision to the contrary, any compensation,
 incentive, or benefit arrangement for Named Officers of the company shall be deemed effective
 only upon the express approval of the Board of Directors, following a recommendation from
 the Compensation Committee

EXECUTED as of the date set forth in the first paragraph of this Agreement.

**THE EMPLOYEE**

---

| | |
|:---|:---|
| By: | */s/ Blake Philips*  |
| Blake Phillips | Blake Phillips |

---

**THE COMPANY**

OFF THE HOOK YS, INC.

---

| | |
|:---|:---|
| By: | */s/ Brian S. John*  |
| Brian S. John, CEO | Brian S. John, CEO |

---

**<u>APPENDIX A</u>**

Bonus Targets and Performance Goals

This Appendix sets forth the performance metrics and bonus structure applicable to the Employee's annual Performance Bonus as referenced in Section 4(b) of the Agreement.

**<u>Bonus Structure:</u>**

Bonuses to be determined by the Compensation Committee and Board annually.

**<u>Commissions:</u>**

10% of OTH Wholesale Division net profits, which includes wholesale, brokerage, and Nor-Tech for the current OTH brokers, less expenses.

## Exhibit 10.9

**Exhibit 10.9**

![](ex10-9_001.jpg)

October 31, 2024

Jason Ruegg, Manager

Off The Hook Yacht Sales NC, LLC

1701 Jel Wade Drive

Wilmington NC 28401

Re: Credit Approval

Dear Mr. Ruegg,

Red Oak Inventory Finance, LLC ("Red Oak") is pleased to advise that Off The Hook Yacht Sales NC, LLC ("Dealer") is conditionally approved for a $25,000,000.00 Pay as Sold line of credit of which up to $25,000,000.00 is available to finance Trade-In / Used inventory. This conditional approval is valid through December 14, 2024. The increased line of credit will be activated upon complete execution of all required documents and satisfaction of the following conditions:

The following "**Pre-Funding Conditions"** must be fully satisfied prior to activation of the credit line. Please also initial where indicated under "**Operational Conditions**."

**<u>Pre-Funding Conditions</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. Amended and Restated Credit and Security Agreement to be signed by
 Jason Ruegg

2. ILOC Addendum to Credit and Security Agreement Letter of Credit to
 be signed by Jason Ruegg

3. Irrevocable Letter of Credit in the
 amount of Two Million Dollars issued by a Red Oak approved bank. Required verbiage template
 previously sent under separate cover.

4. Amended and Restated Personal Guaranty; other guarantees to be addressed
 under separate cover.

5. Revised Program letter, to be sent separately.

6. Insurance certificate
 showing Inventory Coverage, Business Property Coverage or Commercial Property Coverage in
 the amount of at least $18,750,000.00 listing all approved locations naming Red Oak Inventory
 Finance, LLC as Loss Payee:

Red Oak Inventory Finance, LLC

P.O. Box 326

Alpharetta, GA 30009

**<u>Operational Conditions:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. Starting with fiscal year end 12/31/2024, and for each quarter
thereafter, the Dealer must provide financial statements to Red Oak. The fiscal statements should be provided within 120 days of the
fiscal year end and the quarterly financial statements should be provided within 45 days of the quarter end.

**Initial**

We're excited for the continued opportunity to align with your organization and look forward to a long and mutually beneficial relationship. Should you have any questions, please contact your sales representative Greg Nash at [ ]. or.

The Credit Team

Red Oak Inventory Finance, LLC

![](ex10-9_001.jpg)

**AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT**

This Amended and Restated Credit and Security Agreement (as from time to time further amended, restated, modified or extended, and inclusive of any Statement of Financial Transaction (as defined herein) and all agreements, instruments and documents executed or delivered in connection with the Obligations (as defined herein) or otherwise related hereto and thereto, as hereinafter defined, the "Agreement") is dated as of October 31, 2024 (the "Effective Date") by and between RED OAK INVENTORY FINANCE, LLC (as successor-in-interest of Triad Financial Services, Inc.), a Florida limited liability company, in its individual capacity and as agent for each Lender party hereto from time to time (together with its successors and assigns, "Lender") and the undersigned Dealer(s) (individually and collectively, "Dealer"), and amends and restates that certain Credit and Security Agreement dated as of May 25, 2022 (as from time to time amended, restated, modified or extended, and inclusive of any Statement of Financial Transaction and all agreements, instruments and documents executed or delivered in connection with the Obligations (as defined therein) or otherwise related thereto, as hereinafter defined, the "Original Agreement") by and between Triad Financial Services, Inc. (as predecessor-in-interest of Lender) and the Dealer. This Agreement constitutes an amendment and restatement of the Original Agreement, and the execution and delivery hereof and the consummation of the transactions contemplated hereby are not intended by the parties to be, and shall not constitute, a novation or an accord and satisfaction of the rights or obligations under the Original Agreement, all of which shall continue in full force and effect as amended and restated hereby. All references herein to Dealer, any guarantor, obligor, person, document or other nouns of reference mean both the singular and plural form, as the case may be, and the term "person" shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, any government or any political subdivision thereof, or other entity, and the term "entity" shall mean any such "person" other than an individual. All words used herein shall be understood and construed to be of such number and gender as the circumstances may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Extensions of Credit**. Subject to the terms of this Agreement, Lender may extend credit to or on behalf of the Dealer from time to time, on the terms and conditions set forth herein, to enable the Dealer to purchase goods for resale (collectively, the "Inventory") from certain vendors approved by Lender in its sole discretion (each, a "Vendor" and, collectively, the "Vendors"), and Dealer shall be responsible (on a joint and several basis if more than one Dealer executes this Agreement) for any such credit extended by Lender and all other amounts that arise or come due hereunder, including all Obligations. Lender's decision to advance funds is at Lender's sole and absolute business discretion. Lender may combine all of Lender's advances to Dealer or on Dealer's behalf, whether under this Agreement or any other agreement, and whether administered as separate sub-limits, multiple accounts, or otherwise, together with all finance charges, fees and expenses related thereto, to constitute one debt and loan owed by Dealer (on a joint and several basis if more than one Dealer executes this Agreement). All advances and other transactions hereunder are at the sole and absolute business discretion of Lender, are exclusively for business purposes, and are not for personal, family, household or any other consumer purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Financing Terms**. Lender and Dealer agree to set forth in this Agreement the general terms of Dealer's financing arrangement with Lender. Certain other financial terms may depend, in part, on factors which vary from time to time, including without limitation, the availability of any Vendor discounts, if any, payment terms or other incentives, Lender's floor-planning volume with Dealer and a Vendor, if any, and other economic factors. Upon agreeing to finance an item of Inventory for Dealer, Lender will transmit, send or otherwise make available to Dealer a transaction statement, which is a record which identifies the Inventory financed and/or the advance made and the terms and conditions of repayment of such advance (individually and collectively, "Statement of Financial Transaction"). Dealer agrees that Dealer's failure to notify Lender in writing of any objection to a Statement of Financial Transaction within fifteen (15) days after a Statement of Financial Transaction is transmitted, sent or otherwise made available to Dealer, shall constitute Dealer's (a) acceptance of all terms thereof, (b) agreement that Lender is financing such Inventory at Dealer's request, and (c) agreement that such Statement of Financial Transaction will be incorporated herein by reference. If Dealer objects to the terms of any Statement of Financial Transaction, Dealer will pay Lender for such Inventory in accordance with the most recent terms for similar Inventory to which Dealer has not objected (or, if there are no prior terms, at the lesser of 10% per annum or at the maximum lawful contract rate of interest permitted under applicable law), subject to termination of this Agreement by Lender and its rights under the termination provision contained herein. To the extent any Vendor program subsidies are applicable to Dealer's financing program (each a "Lender Credit"), with respect to any advance Lender makes to such Vendor on behalf of Dealer, Lender may apply against any such amount owed to such Vendor any amount Lender is owed from such Vendor for any such Lender Credit; provided, however, in the event such Vendor does not remit any such Lender Credit, Dealer agrees to pay the full amount of such Lender Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Security Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To secure the payment and performance of the Obligations of Dealer to Lender, Dealer hereby grants to Lender a security interest in and to the Collateral described herein. All capitalized terms used herein, which are not otherwise defined in this Agreement, and which are defined in the Uniform Commercial Code, as in effect from time to time, in Georgia, or of any other state the laws of which are required as a result thereof to be applied in connection with the attachment, perfection or priority of, or remedies with respect to, Lender's Lien (as defined herein) on any Collateral (as defined below) (the "UCC") shall be used herein as such term is defined in the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Collateral" means all of the following personal property of the Dealer, whether such property or Dealer's right, title or interest therein or thereto is now owned or existing or hereafter acquired or arising, and wherever located, including without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all personal
 property of Dealer, wherever located, and whether such property is now existing or hereinafter
 acquired,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Inventory of Dealer, whether or not any such Inventory is financed
 in whole or in part by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all returns,
 repossessions, exchanges, substitutions, replacements, attachments, parts, accessories and
 accessions of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Equipment, Fixtures and other Goods of Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all Vendor Credits (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all rent owed from any Equipment or Inventory that is rented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all books and
 records, electronic or otherwise, which evidence or otherwise relate to any of the foregoing,
 and all computers, disks, tapes, media and other devices in which such records are stored,
 but only to the extent the same directly relate to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) choses in action, causes of action, and all other intangible personal
 property of Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) all Dealer's
 Accounts (including Payment Intangibles, Deposit Accounts), General Intangibles (including,
 without limitation, Payment Intangibles), Chattel Paper (whether tangible or electronic),
 Instruments (including Promissory Notes), Deposit Accounts, Investment Property and documents
 representing proceeds of any of the foregoing, including, but not limited to all manufacturers'
 statements of origin (each an "MSO") or certificates of title for any item of
 Inventory; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) all cash and insurance proceeds and products of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Obligations" means all indebtedness and other obligations of any nature whatsoever of Dealer to Lender, whether such indebtedness or other obligations arise under this Agreement or any other existing or future agreement between or among Dealer and Lender or otherwise, and whether for principal, interest, fees, Charges (as defined herein), expenses, indemnification obligations or otherwise, and whether such indebtedness or other obligations are existing, future, direct, indirect, acquired, contractual, non-contractual, joint and/or several, fixed, contingent or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Vendor Credits" means all of Dealer's rights to any price protection payments, rebates, discounts, credits, factory holdbacks, incentive payments and other amounts which at any time are due to Dealer from any Vendor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Representations and Warranties**. Dealer represents and warrants that at the time of execution of this Agreement and at the time of each approval and each advance hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dealer does not conduct business under any trade styles or trade names except as disclosed by the Dealer to Lender in writing and has all the necessary authority to enter into and perform this Agreement and Dealer will not violate its organizational documents, or any law, regulation or agreement binding upon it, by entering into or performing its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dealer will only keep Collateral at locations within the U.S. which have been disclosed to Lender either (i) in writing prior to the execution of this Agreement or (ii) upon thirty (30) days written notice, and, in either case, which have been approved by Lender ("Permitted Locations");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Agreement correctly sets forth Dealer's true legal name, the type of its organization (if not an individual), and the state in which Dealer is incorporated or otherwise organized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all information supplied by Dealer to Lender, including any financial, credit or accounting statements or application for credit, in connection with this Agreement is true, correct and complete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Dealer has good title to all Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) there are no actions or proceedings pending or threatened against Dealer which might result in any material adverse change in such Dealer's financial or business condition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if more than one Dealer executes this Agreement, each Dealer has received, or will receive, direct or indirect benefit from the creation of the joint and several Obligations hereunder; the financial accommodations provided to each Dealer hereunder are for the benefit of such Dealer; the execution, delivery and performance by such Dealer hereof will not result in such Dealer's liabilities (including the maximum amount of liabilities that may be reasonably expected to result from all contingent liabilities and giving effect to rights of contribution and subrogation) exceeding the fair market value of such Dealer's assets; the performance of the obligations of the such Dealer hereunder will not cause such Dealer to exceed its ability to pay its debts as they mature; and this Agreement is entered into by such Dealer without any intent to hinder, delay or defraud either present or future creditors, purchasers or other interested persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Covenants.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Until sold, as permitted by this Agreement, Dealer shall be the sole owner of all Collateral financed by Lender free and clear of all liens, security interests, claims and other encumbrances, whether arising by agreement or operation of law (collectively "Liens"), other than Liens in favor of Lender and subordinate Liens in favor of other persons with respect to which Lender shall have first consented in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dealer will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) keep all Collateral
 at Permitted Locations and keep all tangible Collateral safe and secure, in good order, repair
 and operating condition and insured as required by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) promptly file
 all tax returns required by law and promptly pay all taxes, fees, and other governmental
 charges for which it is liable, including without limitation all governmental charges against
 the Collateral or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) permit Lender
 and its designees, without notice, to inspect the Collateral during normal business hours
 and at any other time Lender deems desirable (and Dealer hereby grants Lender and its designees
 an irrevocable license to enter Dealer's business locations during normal business
 hours without notice to Dealer to account for and inspect all Collateral and to examine and
 copy Dealer's books and records related to the Collateral), and in connection with
 any inspection, provide Lender and its designees safe and secure
access to the Collateral (and related books and records) and comply with any request made by Lender or its designees to move the Collateral
in order to provide such safe and secure access;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) keep complete
 and accurate records of its business, including Inventory, Accounts and sales, and permit
 any representatives designated by the Lender (including employees of the Lender, or any consultants,
 accountants, lawyers, agents and appraisers retained by the Lender), upon reasonable prior
 notice and during normal business hours, to visit and inspect properties, to conduct at Dealer's
 premises field examinations permitted in accordance with this Agreement of Dealer's
 assets, liabilities, books and records, including examining and making copies or extracts
 from its books and records, and to discuss its affairs, finances and condition with its officers
 and independent accountants, all at such reasonable times and as often as reasonably requested,
 provided that upon the occurrence of a Default (as defined herein), the expenses of the Lender
 for such visits, inspections and examinations shall be at the sole expense of Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) furnish Lender
 with such additional information regarding the Collateral and Dealer's business and
 financial condition as Lender may from time to time reasonably request (including without
 limitation financial statements, financial projections, and inventory reports more frequently
 than set forth below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) immediately
 notify Lender of any material adverse change in Dealer's prospects, business, operations
 or condition (financial or otherwise) or in any Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) execute (or
 cause any third party in possession of Collateral to execute) all documents Lender requests
 to perfect and maintain Lender's security interest in the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) deliver to
 Lender immediately upon each request by Lender (and Lender may retain) each certificate of
 title or MSO issued for Collateral financed by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) at all times
 be duly organized, existing, in good standing, qualified and licensed to do business in each
 jurisdiction in which the nature of its business or property so requires and, when requested,
 provide Lender with documentation evidencing the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) notify Lender
 of the commencement of any material legal proceedings against Dealer and any legal proceedings
 against Dealer involving the Collateral, the Obligations, this Agreement or Dealer's
 performance hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) comply with all
 applicable laws, rules, regulations and orders of all governmental bodies binding upon Dealer,
 including but not limited to, to the extent applicable, all relevant trade controls requirements,
 anti-money laundering requirements, anti-terrorist financing and know-your-client requirements
 issued by the U.S. Office of Foreign Asset Control ("OFAC"), the U.S. Department
 of Commerce's Bureau of Industry and Security ("BIS") or the U.S. State
 Department's Directorate of Defense Trade Controls ("DDTC"), and no such
 sale shall involve dealings between Dealer and any person or entity that a U.S. company or
 company of any other jurisdiction would be prohibited from dealing with under any laws or
 regulations of the United States or any other applicable jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) upon request
 from Lender, segregate, catalog, tag, or otherwise provide a clear means of differentiating
 and distinguishing the Collateral from all Inventory or goods of such Dealer financed by,
 or subject to the liens of, any other party other than Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) to the extent
 any certificate of title, MSO, invoice or other transaction document evidencing the ownership
 or acquisition of any item of Inventory or Collateral purchased or acquired by Dealer reflects
 any inaccuracy in Dealer's name due to typographical or scrivener's errors, Dealer
 shall promptly correct such errors, including, but not limited
to, demanding, to the extent necessary, that any issuing third party execute documents correcting such error(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dealer shall not, without Lender's prior written consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) use (except for
 demonstration for sale, if applicable), lease, sell, transfer, consign, license, encumber
 or otherwise dispose of Collateral except: (i) for sales of Inventory at retail in the ordinary
 course of Dealer's business, or (ii) if more than one Dealer executes this Agreement,
 for sales, transfers or consignments from one Dealer to another Dealer hereunder, provided,
 however, that such sale, transfer or consignment shall not jeopardize or otherwise impair
 Lender's Lien on such Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) engage in any other material transaction not in the ordinary course
 of Dealer's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) change its
 business in any material manner or its organizational structure or be a party to a merger
 or consolidation or change its registration to a registered organization other than as specified
 above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) change its name without giving Lender at least sixty (60) days'
 prior written notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) change the state
 in which it is incorporated or otherwise organized (except upon sixty (60) days' prior
 written notice to Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) change its chief
 executive office or office where it keeps its records with respect to Accounts or Chattel
 Paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) store Inventory financed by Lender with any third party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) sell or otherwise
 transfer Inventory to a Dealer Affiliate, where "Dealer Affiliate" means any
 person other than the Dealer that: (i) directly or indirectly controls, is controlled by
 or is under common control with Dealer, (ii) directly or indirectly holds an ownership stake
 in Dealer, (iii) is a director, partner, manager, or officer of Dealer or an affiliate of
 Dealer, or (iv) any natural person related to Dealer or an affiliate of Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On and after the Effective Date, in the event any Dealer Affiliate: (i) establishes or acquires more than fifty percent (50%) of the ownership of any entity other than the Dealer, or (ii) is appointed as a manager, or is otherwise responsible for the management and/or operation of any entity other than the Dealer (each, a "New Affiliate Entity"), the Dealer and Lender shall use their best efforts to amend this Agreement in order to include the New Affiliate Entity as a Dealer hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All risk of loss, damage to or destruction of Collateral shall at all times be on Dealer. Except as otherwise agreed upon in writing by Dealer and Lender, Dealer shall keep tangible Collateral insured for full value against all insurable risks under policies delivered to Lender and issued by insurers satisfactory to Lender with loss payable to Lender. Lender is to be provided with any written notice of cancellation or change in such policies within ten (10) Business Days (as defined below) of the issuance of such notice. Upon the occurrence of any Default, Lender is hereby irrevocably appointed as Dealer's attorney-in-fact and authorized, but not required, to act as attorney-in-fact for Dealer in adjusting and settling any insurance claims under any such policy and in endorsing any checks or drafts drawn by insurers. Dealer shall promptly remit to Lender in the form received, with all necessary endorsements, all proceeds of such insurance which Dealer may receive. Lender, at its election, shall either apply any proceeds of insurance it may receive toward payment of the Obligations or pay such proceeds to Dealer. For purposes of this Agreement, "Business Day" means any day the Federal Reserve Bank of New York is open for the transaction of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless Dealer provides evidence of insurance coverage required by Section 6(a) of this Agreement, Lender may purchase such required insurance at Dealer's expense. This insurance may, but not need to, protect Dealer's interest. The coverage that Lender purchases may not pay any claim that the Dealer makes or any claim that is made against Dealer in connection with the Collateral. Dealer may later cancel any insurance purchased by Lender, but only after providing Lender with evidence that Dealer has obtained insurance as required under this Agreement. If Lender purchases insurance for the Collateral, Dealer will be responsible for the costs of that insurance, including insurance premium, interest, and any other charges Lender may impose in connection with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance. The cost of insurance may be added to Dealer's total outstanding balance or Obligations. The costs of insurance may be more than the cost of insurance Dealer may be able to obtain on its own.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** Financial Statements. Unless waived by Lender, Dealer will deliver to Lender, or cause to be delivered to Lender, in a form satisfactory to Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dealer's year-end balance sheet and annual profit and loss statement for each of its fiscal years prepared in accordance with generally accepted accounting principles, consistently applied and otherwise in form and substance acceptable to Lender, within one hundred twenty (120) days after the same are prepared but in no event later than six months after the end of such fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within forty-five (45) days after the end of each of Dealer's fiscal quarters prepared in accordance with generally accepted accounting principles, consistently applied and otherwise in form and substance acceptable to Lender, a reasonably detailed balance sheet and income statement as of the last day of such quarter covering Dealer's year to date operations for the period ending as of the last date of such quarter, provided, however, that monthly balance sheets and income statements for Dealer shall also be delivered to Lender at Lender's sole discretion and upon written request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dealer's corporate tax returns, within thirty (30) days of the filing of the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Personal financial statements and tax returns for: (i) any guarantor of the Obligations, or any portion thereof, or (ii) any person or entity which owns more than ten percent (10.00%) of Dealer, which personal financial statements and tax returns shall be delivered annually, within forty-five (45) days after the end of such calendar year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) within ten (10) days after Lender's request, any other information relating to the Collateral or the financial condition of Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Payment Terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dealer will immediately pay Lender the principal amount of the Obligations owed Lender on each item of Collateral financed by Lender on the earliest occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) when such Collateral is lost, stolen
 or damaged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) when such Collateral is sold, transferred,
 rented, leased, otherwise disposed of, unaccounted for, or its payment term has matured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in strict accordance with any curtailment
 or repayment schedule applicable to such Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) when otherwise required under the terms
 of this Agreement.

Lender may apply payments to reduce finance charges first and then principal, regardless of Dealer's instructions; and apply principal payments to the oldest (earliest) invoice for Collateral financed by Lender, but, in any event, all principal payments, may, in Lender's sole and absolute business discretion, first be applied to such Collateral which is sold, lost, stolen, damaged, rented, leased, or otherwise disposed of or unaccounted for. Any payment hereunder which would otherwise be due on a day which is not a Business Day, shall be due on the next succeeding Business Day, with such extension of time included in any calculation of applicable finance charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Dealer (i) fails to immediately remit funds to Lender upon the maturity of Dealer's applicable payment terms with respect to such advance or upon the sale, transfer, rental, lease, loss, theft, damage, or other disposition of or inability to account for any Inventory financed by Lender for Dealer (a "Sale Out of Trust" or "SOT") or (ii) is required to make immediate payment to Lender of any past due obligation discovered during any Collateral review, or at any other time, then Lender's acceptance of any payment with respect to such past due obligation (whether in full or partial satisfaction of such obligation) shall not be construed to have waived or amended the terms of its financing program. Dealer shall send all such payments to Lender as directed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Vendor Credit granted to Dealer for any Collateral will not reduce the Obligations Dealer owes Lender until Lender has received payment therefor as set forth below. Dealer will: (i) pay Lender even if any Collateral is defective or fails to conform to any warranties extended by any third party; and (ii) indemnify and hold Lender (together with Lender's affiliates, and its and their respective partners, agents, employees, successors and assigns, each a "Lender Indemnitee") harmless against all claims and defenses asserted by any buyer of any Collateral. Dealer waives all rights of setoff Dealer may have against Lender. Dealer will not assert against Lender any claim or defense Dealer may have against any Vendor and any such claims or defenses shall not affect Dealer's liabilities or obligations to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any advances which are not used to acquire Inventory, as contemplated hereby, shall be paid on demand unless otherwise provided in this Agreement or in any Statement of Financial Transaction. In order to adequately secure Dealer's Obligations to Lender, Dealer shall, at Lender's request, immediately pay Lender the amount necessary to reduce the sum of Lender's outstanding advances with respect to Inventory received by Dealer to an amount which does not exceed the aggregate invoice price to Dealer of the Inventory in Dealer's possession which (i) is financed by Lender, and (ii) in which Lender has a Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All payments due from Dealer to Lender under this Agreement or otherwise shall be made by ACH, EDI or federal wire drawn upon a United States bank, and in each case drawn on an account established in the name of Dealer. Payment in any other form may delay processing or be returned to Dealer, and may cause Dealer to incur a processing fee of up to $150 per occurrence and, as applicable, a late payment fee in accordance with Section 10(a) below. Lender's policies bar payment by cash or cash equivalents and any such payments will be declined. Lender reserves the right to decline other forms of payment, including but not limited to, cashiers' checks, money orders, bank drafts, third-party checks and travelers checks. In the event of any such payment decline, Dealer's debt will remain outstanding and interest/fees permitted under this Agreement may accrue until acceptable payment is received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Calculation of Charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dealer shall pay fees, charges and interest (collectively "Charges") with respect to each advance in accordance with this Agreement. Dealer shall pay Lender a Charge of $150 per occurrence for any transmittal of payment, in whatever form, which is returned unpaid to Lender. Unless otherwise provided in this Agreement or any Statement of Financial Transaction, the following additional provisions shall be applicable to Charges:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for any month,
 the "Index Rate" shall be the greater of (a) the highest 1-month forward looking
 term Secured Overnight Financing Rate ("SOFR") published on the website maintained
 by CME Group at www.cmegroup.com (or a successor website or publisher selected by Lender)
 (the "SOFR Website") for any single day during the immediately preceding calendar
 month and (b) any Minimum Rate stated on the applicable Statement of Financial Transaction,
 provided, however, that such rate shall not be lower than 0.0%. If, for any reason, such
 rate is no longer published on the applicable CME Group page, Lender shall select such replacement
 index as Lender in its sole and absolute business discretion determines most closely approximates
 such rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Charges shall
 be paid by Dealer monthly pursuant to the terms of the billing statement in which such Charges
 appear;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) interest on
 each advance and principal amount of the Obligations related thereto shall be computed for
 any period by dividing the contract rate set forth in the applicable Statement of Financial
 Transaction by 360 (the quotient of which is herein referred to as the "Daily Rate"),
 and then multiplying the Daily Rate by the actual principal balance outstanding on such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) interest on an
 advance shall begin to accrue on the "Start Date," which shall be: (A) for any
 new Inventory, the invoice date referred to in the applicable Vendor's invoice for
 such new Inventory; or (B) for any used, trade-in or previously-owned Inventory, the date
 an advance is made hereunder to finance such used, trade-in or previously-owned Inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) for the purpose
 of computing Charges, any payment will be credited pursuant to Lender's payment recognition
 policies, as in effect from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) advances or
 any part thereof not paid when due (and Charges not paid when due), at the option of Lender,
 shall become part of the principal amount of the Obligations and shall bear interest at the
 Default Rate (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all interest
 rates provided or referenced in the Statement of Financial Transaction, including all references
 to base rate and/or any margin or addition to any base rate, are provided and referenced
 on the basis of a 360-day year; and the method of calculating interest provided in this Section
 9(a) (i.e., the interest rate calculated based on a year of 360 days, for the actual number
 of days elapsed) will result in a higher effective rate than the quoted numeric rate provided
 in the Statement of Financial Transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) for any period that SOFR is less than 0.00%, SOFR shall be deemed
 to be 0.00%.

For purposes of this Agreement, the following definitions shall apply:

"Default Rate" shall mean the default rate specified in Dealer's financing program with Lender, if any, or if there is none so specified, at the lesser of 12% per annum above the rate in effect immediately prior to the Default, or the highest lawful contract rate of interest permitted under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lender intends to strictly conform to the usury laws governing this Agreement. Regardless of any provision contained herein, in any Statement of Financial Transaction, or in any other document, Lender shall never be deemed to have contracted for, charged or be entitled to receive, collect or apply as interest, any amount in excess of the maximum amount allowed by applicable law. If Lender ever receives any amount which, if considered to be interest, would exceed the maximum amount permitted by law, Lender will apply such excess amount to the reduction of the unpaid principal balance which Dealer owes, and then will pay any remaining excess to Dealer. In determining whether the interest paid or payable exceeds the highest lawful rate, Dealer and Lender shall, to the maximum extent permitted under applicable law, (1) characterize any non-principal payment (other than payments which are expressly designated as interest payments hereunder) as an expense or fee rather than as interest, (2) exclude voluntary pre-payments and the effect thereof, and (3) spread the total amount of interest throughout the entire term of this Agreement so that the interest rate is uniform throughout such term. Dealer agrees to pay an effective rate of interest that is the sum of (i) the interest rate provided in this Agreement, including as provided in each accepted Statement of Financial Transaction, as may be amended as provided herein; and (ii) any additional rate of interest resulting from any other charges or fees paid or to be paid by Dealer pursuant to this Agreement and that are determined to be interest or in the nature of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Billing Statement/Fees; Right to Modify Charges and Other Terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lender will transmit, send or otherwise make available to Dealer a monthly billing statement identifying all charges due on Dealer's account with Lender. The charges specified on each billing statement will be due and payable in full immediately on the fifteenth (15<sup>th</sup>) day of the month subsequent to the date of receipt, unless otherwise stated in writing in Dealer's billing statement, Statement of Financial Transaction or other written document provided by Lender, unless Lender receives Dealer's written objection thereto within fifteen (15) days after it is transmitted, sent or otherwise made available to Dealer. If Lender does not receive, by the 25<sup>th</sup> day of any given month, payment of all charges accrued to Dealer's account with Lender during the immediately preceding month, Dealer will (to the maximum extent allowed by applicable law) pay Lender a fee equal to the greater of (except to the extent, and for so long as, the same is subject to a good faith dispute) 5% of all unpaid amounts, not to exceed any maximum amounts allowed under applicable law, or $25.00, until paid in full (payment of such fee does not waive the default caused by the late payment). Lender may adjust the billing statement at any time to conform to applicable law and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lender may charge one or more fees in connection with the servicing and administration of Dealer's account. From time to time, Lender may provide written notice to Dealer of new or changed fees, interest and/or other finance charges (including without limitation, increases or decreases in the periodic rate or amount of finance charges, the method of computing finance charges and when and how finance charges, and principal payments, are payable), policies, practices and other charges and/or credit terms (collectively, "Fees and Terms") payable by, or applicable to, Dealer or relating to Dealer's account generally, or in connection with specific services, or events, to be effective as of the notice date, or such other future effective date as Lender shall advise, with respect to existing Obligations owing by Dealer to Lender and/or to Obligations incurred or arising after such notice or future effective date, as the case may be, all as Lender may elect by so indicating in such notice. Such notice may be delivered by mail, courier or electronically in a separate writing or website posting, or set forth in the Statement of Financial Transaction and/or the billing statement. For the avoidance of doubt, Dealer may request a copy of the Fees and Terms then in effect by written notice to Lender. Dealer shall be deemed to have accepted such Fees and Terms by either (1) making any request for financing after the effective date of such notice, or (2) failing to notify Lender in writing of any objection to a Statement of Financial Transaction, billing statement or written notice advising of such Fees and Terms within fifteen (15) days after such notice has been sent to Dealer. If Dealer objects to the Fees and Terms, such Fees and Terms shall not be imposed, but Lender may charge or implement the last Fees and Terms to which Dealer has not objected, and may elect to terminate Dealer's financing program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Default**. The occurrence of one or more of the following events shall constitute a default by Dealer (each, a "Default"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dealer shall fail to pay any Obligations hereunder or other amounts, however or wherever documented, owed to Lender or to any person that at any time directly or indirectly controls, is controlled by, or is under common control with Lender (a "Lender Affiliate") when due or any remittance for any such Obligations or such other amounts is dishonored when first presented for payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dealer or any guarantor, pledgor, obligor, surety, issuer of a letter of credit or any person other than Dealer primarily or secondarily liable with respect to any Obligations (each an "Obligor"), shall (i) make any representation to Lender that is not true in all respects when made, or (ii) breach any covenant, warranty or agreement to or with Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dealer (including, if Dealer is a partnership or limited liability company, any partner or member of such Dealer that is a natural person) or guarantor or other Obligor shall die, become insolvent or generally fail to pay its debts as they become due or, if a business, shall cease to do business as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any guaranty, letter of credit or other form of collateral, pledge or security provided by Dealer, guarantor or other Obligor to Lender with respect to any Obligations or Collateral shall terminate or not be renewed at least sixty (60) days prior to its stated expiration or maturity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Dealer shall abandon any Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any guaranteeing, granting or pledging party shall default, revoke, terminate or limit, or take any action purporting to default, revoke, terminate or limit, any guaranty, letter of credit, collateral pledge or other assurance of payment relating to any Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Dealer or guarantor or other Obligor becomes insolvent, voluntarily or involuntarily becomes subject to any filing, notice or proceeding under the U.S. Bankruptcy Code, or is the subject of any other relief under any present or future law of any jurisdiction relative to bankruptcy, insolvency, reorganization, receivership, or other relief for debtors or affecting creditors' rights, or any state insolvency law or any similar law, and, in each case, such proceeding is not dismissed within sixty (60) days (an "Automatic Default");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any trustee in bankruptcy, interim receiver, receiver, assignee for the benefit of creditors, receiver and manager, agent, custodian, sequestrator, administrator, monitor or liquidator or any other person with similar powers shall be appointed in respect of Dealer, guarantor or other Obligor or the assets of Dealer, guarantor or other Obligor, or any filing is made or proceeding is commenced in respect of Dealer seeking the entry of an order for the appointment or relief in respect of any of the above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any attachment, sale or seizure shall be issued or shall be executed against any assets of Dealer, guarantor or other Obligor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dealer shall lose, or shall be in default of, any franchise, license or right to deal in any Collateral which Lender finances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Dealer, guarantor, other Obligor or any third party shall file any correction or termination statement with respect to any UCC filing made by Lender in connection herewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a material adverse change shall occur in the business, operations or condition (financial or otherwise) of Dealer (including, if Dealer is a partnership or limited liability company, any partner or member of Dealer) or any guarantor or other Obligor or with respect to the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Dealer or guarantor or other Obligor fails to pay any debt or perform any other obligation owed to any third

party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Dealer or guarantor or other Obligor defaults under the terms of any agreement with any Lender Affiliate;

or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Lender in good faith believes the prospect of payment of any Obligations is impaired or Lender deems itself insecure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. Rights and Remedies Upon Default**. Upon the occurrence of a Default, Lender shall have all rights and remedies of a secured party under the UCC as in effect in any applicable jurisdiction and other applicable law and all the rights and remedies set forth in this Agreement. Lender may terminate any obligations it has under this Agreement and any outstanding credit approvals immediately and/or declare any and all Obligations immediately due and payable without notice or demand. Dealer waives notice of intent to accelerate, and of acceleration of any Obligations. Lender may enter any premises of Dealer, with or without process of law, without force, to search for, take possession of, and remove the Collateral, or any part thereof. If Lender requests, Dealer shall cease disposition of and shall assemble the Collateral (including, but not limited to, all certificates of title and MSOs) and make it available to Lender, at Dealer's expense, at a convenient place or places designated by Lender. Lender may take possession of the Collateral or any part thereof on Dealer's premises and cause it to remain there at Dealer's risk and expense, pending sale or other disposition. Dealer agrees that the sale of Inventory by Lender to a person who is liable to Lender under a guaranty, endorsement, repurchase agreement or the like shall not be deemed to be a transfer subject to UCC §9-618 or any similar provision of any other applicable law, and Dealer waives any provision of such laws to that effect. Dealer agrees that any repurchase of Inventory by a Vendor pursuant to any applicable repurchase agreement with Lender shall be a commercially reasonable method of disposition. Dealer shall be liable to Lender for any deficiency resulting from Lender's disposition, including without limitation a repurchase by a Vendor, regardless of any subsequent disposition thereof. Dealer is not a beneficiary of, and has no right to require Lender to enforce, any repurchase agreement. If Dealer fails to perform any of its obligations under this Agreement, Lender may perform the same in any form or manner Lender in its sole and absolute business discretion deems necessary or desirable, and all monies paid by Lender in connection therewith shall be additional Obligations and shall be immediately due and payable without notice, together with interest payable on demand at the Default Rate. All of Lender's rights and remedies shall be cumulative. At Lender's request, or without request in the event of an Automatic Default, Dealer shall pay any Vendor Credits to Lender as soon as the same are received for application to the Obligations. Dealer hereby irrevocably appoints Lender as Dealer's attorney-in-fact and authorizes Lender to collect such amounts directly from such Vendor and, upon request of Lender, shall instruct such Vendor to pay Lender directly. Dealer irrevocably waives any requirement that Lender retain possession and not dispose of any Collateral until after trial or final judgment or appeal thereof. Lender's election to extend or not extend credit to Dealer is at Lender's sole and absolute business discretion and does not depend on the absence or existence of a Default. If a Default is in effect, and without regard to whether Lender has accelerated any Obligations, Lender may, without notice, apply the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. Power of Attorney**. Dealer hereby irrevocably appoints Lender as Dealer's attorney-in-fact and authorizes Lender to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) file financing statements and amendments thereto describing Lender as "Secured Party," Dealer as "Debtor" and indicating the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) authenticate, execute or endorse on behalf of Dealer any instruments, Chattel Paper, certificates of title, MSOs, or other notices or records comprising or related to Collateral or evidencing financing under this Agreement or evidencing or maintaining the perfection of the security interest granted hereby, as attorney-in-fact for Dealer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) supply any omitted information and correct errors in any documents between Lender and Dealer.

This power of attorney and the other powers of attorney granted in this Agreement (including without limitation, Sections 6(a), 12 and 15(b) hereof) are irrevocable and coupled with an interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. Collection and Other Costs**. In the event of a Default, Dealer shall pay to Lender on demand all attorneys' fees and legal expenses and other costs and expenses incurred by Lender in connection with establishing, perfecting, maintaining perfection of, protecting and enforcing its Lien on the Collateral and collecting any Obligations, or in connection with any modification of this Agreement, any Default or in connection with any action or proceeding for possession or under any receivership, assignment for benefit of creditors, bankruptcy or other insolvency laws (including, without limitation, filing a proof of claim, motion for stay relief or monitoring such proceeding under any such laws to the full extent permitted under such law), involving the Dealer or any Collateral. All fees, expenses, costs and other amounts described in this Section shall constitute Obligations, shall be secured by the Collateral and interest shall accrue thereon at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When Dealer opens an account, Lender may ask for the name(s), address(es), date(s) of birth, and other information that will allow Lender to identify Dealer, and its owner(s) as applicable, guarantor and other Obligor. Lender may also ask to see driver's licenses or other identifying documents related to Dealer, and its owner(s) as applicable, guarantor and other Obligor. Failure to comply with such requests will constitute a Default under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dealer hereby irrevocably appoints Lender as Dealer's attorney-in-fact and authorizes Lender to investigate and make inquiries of former, current, or future creditors or other persons and credit bureaus regarding or relating to Dealer (including, to the extent permitted by law, any equity holders of Dealer). Lender may provide to any Lender Affiliate or any third parties any financial, credit or other information regarding Dealer (including, to the extent permitted by law, any equity holders of Dealer) that Lender may at any time possess, whether such information was supplied by Dealer to Lender or otherwise obtained by Lender. Further, Dealer hereby irrevocably appoints Lender as Dealer's attorney-in-fact and authorizes and instructs any third parties (including without limitation, any Vendor or customers of Dealer) to provide to Lender any credit, financial or other information regarding Dealer that such third parties may at any time possess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. Termination.** Unless sooner terminated as provided in this Agreement or by at least forty-five (45) days prior written notice from either party to the other, the term of this Agreement shall be for one (1) year from the date hereof and automatically renewed from year to year thereafter; *provided, however*, that either Lender or Dealer may terminate this Agreement immediately by notice to Dealer if Dealer objects to any terms of any Statement of Financial Transaction, billing statement or written notice advising of Fees and Terms. Upon termination of this Agreement, all Obligations shall become immediately due and payable without notice or demand. Upon any termination, Dealer shall remain fully liable to Lender for all Obligations, whether arising prior to or after termination, and all of Lender's rights and remedies and its security interest shall continue until all Obligations to Lender are paid and all obligations of Dealer are performed in full. If Lender makes advances in reliance on any applicable repurchase agreement from a Vendor, it may cease making such advances if it has any concern as to whether such repurchase agreement will cover future advances or be performed by such Vendor. No provision of this Agreement shall be construed to obligate Lender to make any advances. All rights, remedies, privileges and indemnities set forth in this Agreement in Lender's and each Lender Indemnitee's favor are expressly made for the benefit of and shall be enforceable by each of them and their respective successors and assigns, and shall survive any expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. Binding Effect**. Dealer cannot assign its interests in this Agreement, or any portion thereof, without Lender's prior written consent. This Agreement will protect and bind Lender's and Dealer's respective heirs, representatives, successors and permitted assigns, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. Notices**. Except as required by law or as otherwise provided herein, all notices or other communications to be given under this Agreement or under the UCC shall be in writing served either personally, by overnight courier addressed to Dealer at the address set forth on Dealer's signature block, below, or such other address as Dealer notifies Lender, in writing, shall be used for notices under this Section 18. Any such communication shall be deemed to have been given upon delivery in the case of personal delivery, one Business Day after deposit with an overnight courier, except that any notice of change of address shall not be effective until actually received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. Severability**. If any provision of this Agreement or its application is invalid or unenforceable, the remainder of this Agreement will not be impaired or affected and will remain binding and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. Supplement**. If Dealer and Lender have previously executed other agreements pertaining to all or any part of the Collateral, this Agreement will supplement, but not amend, such agreement, and this Agreement will neither be deemed a novation nor a termination of such agreement, nor will execution of this Agreement be deemed a satisfaction of any obligation secured by such agreement. This Agreement will only pertain to financing related to Dealer's acquisition of Inventory from a Vendor or the refinancing of Inventory acquired from a Vendor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. Miscellaneous.** Time is of the essence regarding Dealer's performance of its obligations to Lender. Lender may accept this Agreement by issuance of an approval to the applicable Vendor for the purchase of Inventory by Dealer or by making an advance hereunder. Dealer's liability to Lender is direct and unconditional and will not be affected by the release or nonperfection of any security interest granted hereunder. Lender may refrain from or postpone enforcement of this Agreement or any other agreements between Lender and Dealer without prejudice, and the failure to strictly enforce these agreements will not create a course of dealing which waives, amends or modifies such agreements. Any waiver by Lender of a Default shall only be effective if in writing signed by Lender and transmitted to Dealer. The express terms of this Agreement will not be modified by any course of dealing, usage of trade, or custom of trade which may deviate from the terms hereof. If Dealer fails to pay any taxes, fees or other obligations which may impair Lender's interest in the Collateral, or fails to keep any Collateral insured, Lender may, but shall not be required to, pay such amounts, provided that Lender's effecting such compliance shall not be a waiver of Dealer's failure or Default. Such paid amounts shall constitute: (a) additional Obligations which Dealer owes to Lender, which are subject to finance charges as provided herein and shall be secured by the Collateral; and (b) due and payable immediately in full. Section titles used herein are for convenience only, and do not define or limit the contents of any Section. This Agreement may be validly executed in one or more multiple counterpart signature pages, and each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this Agreement (including DocuSign and other comparable means of electronic signature), if any, are sufficient to authenticate this writing and have the same force and effect as manual signatures. Notwithstanding anything herein to the contrary, Lender may rely on any facsimile copy, electronic data transmission, or electronic data storage of this Agreement, any Statement of Financial Transaction, billing statement, financing statement, authorization to pre-file financing statements, invoice from any Vendor, financial statements or other reports, which will be deemed an original, and the best evidence thereof for all purposes. This Agreement shall be construed without presumption for or against any party who drafted all or any portion of this Agreement. No modification of this Agreement shall bind Lender unless in a writing signed by Lender and transmitted to Dealer. Dealer acknowledges that: (i) it has received a true and complete copy of this Agreement, and (ii) it has read and understands this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Assignments; Participations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Assignments**. Lender may at any time assign to one or more persons (any such person, an "Assignee") all or any portion of its interests under this Agreement, including, but not limited to, its rights, claims and interest in any Obligations, Liens and/or Collateral without advance notice to or consent of Dealer. Following such assignment: (i) such Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights and obligations hereunder have been assigned to such Assignee pursuant to an assignment agreement between Lender and the Assignee (an "Assignment Agreement"), shall have the rights and obligations of Lender hereunder and (ii) Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement, shall be released from its rights (other than its indemnification rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable, Lender) pursuant to an effective assignment agreement, Dealer shall execute and deliver to the Assignee (and, as applicable, Lender) such other documents as may be reasonably requested by Lender or Assignee to evidence the assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Participations**. Lender may at any time sell to one or more persons or entities participating interests in this Agreement, the Obligations, the Liens and/or the Collateral (any such person or entity, a "Participant") without advance notice or consent to Dealer. In the event of a sale by Lender of a participating interest to a Participant, (a) Lender's obligations hereunder shall remain unchanged for all purposes, (b) Dealer shall continue to deal solely and directly with Lender in connection with Lender's rights and obligations hereunder, (c) all amounts payable by Dealer shall be determined as if Lender had not sold such participation and shall be paid directly to Lender, and (d) Lender shall maintain as a non- fiduciary agent of Dealer, a register as to the participations granted and transferred under this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23. CLASS ACTION WAIVER.** TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DEALER AND LENDER AGREE THAT BY ENTERING INTO THIS AGREEMENT, DEALER AND LENDER WAIVE THEIR RIGHT TO PARTICIPATE IN A CLASS ACTION, PRIVATE ATTORNEY GENERAL ACTION OR OTHER REPRESENTATIVE ACTION AGAINST THE OTHER IN COURT. DEALER AND LENDER FURTHER AGREE THAT EACH MAY BRING DISPUTES AGAINST EACH OTHER ONLY IN THEIR INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. Further, unless Dealer and Lender both agree otherwise, no claims may be joined or consolidated into any other existing proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24. Privacy.** Lender and Dealer acknowledge that they are aware of various US federal and State laws that require the protection of personal data, including, without limitation, Graham Leach Bliley Act ("GLBA" 15 U.S.C. § 6801 et seq.), California Consumer Protection Act ("CCPA" California Civil Code § 1798.185 et seq.), and New York SHIELD Act (N.Y. Gen Bus. Law § 899-bb), and each agree to perform all necessary obligations will be in done in accordance with all applicable data protection and data privacy laws. The parties understand and agree that telematics and audit data from the manufactured Inventory or other Collateral may be collected and shared among the parties hereto and the applicable Vendor, and that the parties are service providers pursuant to the terms of CCPA and any other applicable law. The parties agree and represent that the data is not sold or transferred for value and agree to cooperate in any data subject access requests within the periods dictated by the applicable laws. This telematics data may also include personally identifiable information or identifiable household data and will be collected, processed, and stored in accordance with all applicable laws. The parties further agree to cooperate in the event of any security incident or any data subject access request. The parties acknowledge that each is individually responsible for making appropriate disclosures regarding data collection and use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25. Unconditional Obligation**. Dealer acknowledges and agrees that its obligations to pay the Obligations and any and all amounts due and owing in accordance with the terms hereof, and any Statement of Financial Transaction, shall be absolute and unconditional, and such Obligations shall not be released, discharged, waived, reduced, set-off or affected by any circumstances whatsoever, including, without limitation, any damage to or destruction of any Collateral, defects in the Collateral, including under any applicable "lemon laws," or if Dealer no longer can use such Collateral. Dealer further acknowledges that it is not entitled to reduce or set-off against any Obligations or any other amounts due to Lender, whether or not Dealer's claim arises out of this Agreement, any Statement of Financial Transaction, Lender's liability or each Vendor's liability, strict liability, negligence or otherwise. Dealer agrees that it shall not assert against Lender any claim of defense Dealer may have against any Vendor whether for breach of contract, warranty, misrepresentation, failure to ship, lack of authority, or otherwise, including without limitation claims or defenses based upon charge back, credit memos, rebates, price protection payments or returns. Any such claims or defenses or other claims or defenses Dealer may have against a Vendor shall not affect Dealer's liabilities or obligations to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26. Monetary Designations**. Unless otherwise stated herein, all monetary amounts are stated in United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27. Limitation of Remedies and Damages**. In the event there is any dispute under this Agreement, the aggrieved party shall not be entitled to exemplary, punitive, incidental or consequential damages so that the aggrieved party's remedy in connection with any action against any party to this Agreement arising under or in any way related to this Agreement shall be limited to actual and direct damages; provided that each party acknowledges and agrees that (a) any liquidated damages required to be paid by Dealer to Lender in connection with Lender's exercise of any of its remedies upon a Default or in connection with a Collateral loss or casualty; and/or (b) third-party claims for such damages shall be deemed direct damages for Lender and each Lender's Indemnitee and included in Dealer's indemnity obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28. JURY TRIAL WAIVER; CONSENT TO JURISDICTION; PUNITIVE DAMAGE WAIVER**. ANY LEGAL PROCEEDING WITH RESPECT TO ANY DISPUTE HEREUNDER, OR SUCH PARTICULAR DISPUTE, WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT A JURY. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DEALER AND LENDER IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUCH PROCEEDING. DEALER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF GEORGIA, INCLUDING WITHOUT LIMITATION ANY STATE COURT LOCATED IN FULTON COUNTY AND ANY FEDERAL COURT LOCATED IN THE NORTHERN DISTRICT OF GEORGIA, AND DEALER HEREBY WAIVES ANY OBJECTION THAT IT MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY ACTION OR PROCEEDING IN ANY SUCH COURT. LENDER AND DEALER HEREBY WAIVE ANY RIGHT TO PUNITIVE DAMAGES OF ANY KIND AGAINST ONE ANOTHER IN ANY PROCEEDING OR AWARD RELATING TO THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29. GOVERNING LAW**. THE INTERNAL LAWS OF THE STATE OF GEORGIA (EXCLUDING CONFLICT OF LAW PRINCIPLES PROVIDING FOR THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION) WILL GOVERN THIS AGREEMENT AND ALL TRANSACTIONS HEREUNDER AS TO INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT AND IN ALL OTHER RESPECTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30. Confidentiality**. As used herein, the term "Confidential Information" means written and oral information provided by or on behalf of either party to the other party, or to any of the other party's affiliates in connection with this Agreement, which information has competitive value and/or is confidential in nature, and any other information designated by Dealer or Lender as being confidential, including, without limitation, any and all financial, technical, commercial or other information and documents concerning the business and affairs of either party, its affiliates and any studies or documents prepared during the review thereof by the respective parties and/or their respective directors, officers, employees, and representatives that contain or otherwise reflect such information. The term "Confidential Information" does not include such parts of the information which (a) are or become generally available to the public other than as a result of an unauthorized disclosure by any party, (b) become generally available to a party on a non-confidential basis from a source which is not known to such party to be prohibited from disclosing such information to such party or (c) are hereafter or were heretofore independently developed or compiled by such party without use of the Confidential Information. The parties shall treat the Confidential Information as confidential and proprietary and not use all or any part thereof for any purpose other than with respect to the performance of its obligations in connection with the transactions contemplated by this Agreement. Any party may disclose all or any part of the Confidential Information to such of its affiliates, officers, employees and other representatives who need to have access thereto with respect to the transactions contemplated by this Agreement. Each party will be responsible for any breach of the provisions of this Section by such party and their respective affiliates, directors, officers, employees, and representatives. Lender may disclose all or any part of the Confidential Information to each Assignee and Participant of Lender in connection with an assignment or participation permitted under Section 22 hereof, provided that such Assignee and Participant shall have signed an acknowledgement of these confidentiality provisions which includes an agreement to be bound by the terms of these confidentiality provisions to the same extent as the Lender. Except as may be necessary to facilitate the collection of the Obligations, all originals and copies of written Confidential Information in the possession or under the control of any party will be promptly destroyed or returned to the other party upon such other party's request following termination of this Agreement. In the event that any party becomes legally compelled to disclose any of the Confidential Information, such party will provide the other party with notice thereof so that the other party may; at such other party's sole cost and expense, seek a protective order or other appropriate remedy. This Section will survive the expiration or termination of this Agreement and will, in any such case, expire two (2) years from the date of such expiration or termination; *provided, however,* that nothing herein will be deemed or construed to authorize the disclosure of any information in violation of applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31. Multiple Dealers**. If more than one Dealer executes this Agreement, each Dealer hereby agrees to be jointly and severally responsible for fulfilling all Obligations hereunder. All affirmative representations, covenants, agreements and obligations imposed on "Dealer" hereunder shall constitute representations, covenants, agreements and obligations binding on all Dealers. All representations, covenants, agreements and obligations shall also constitute representations, covenants agreements and obligations of all Dealers but shall be breached hereunder if breached by any Dealer. Insofar as Lender is concerned, the act of any Dealer shall bind all other Dealers, and Lender's rights, remedies, powers privileges and indemnities (and each Dealer's rights and duties to Lender) shall not be affected by any notice or action to the contrary. Lender shall be fully protected, as to each and all Dealer, in dealing with any one Dealer. A Dealer's obligations hereunder shall not be affected by any action taken or not taken by Lender, by any lack of prior enforcement or retention of any rights against any Dealer, by any illegality, unenforceability, or invalidity of any Dealer's obligations, or by any circumstance or condition, including, without limitation, (i) any termination, amendment, or modification of, or supplement hereto; (ii) any action by any Dealer with respect to any item of Collateral; (iii) any failure or delay to conform or comply with any term hereof; (iv) any waiver, consent, extension, indulgence, compromise, settlement, release, or other action or inaction under or in respect hereof, or any exercise or non-exercise of any right, remedy, power, privilege or indemnity under or in respect hereof; (v) any voluntary or involuntary bankruptcy, insolvency, or similar proceeding with respect to any Dealer; (vi) any limitation on the liability or obligations of any Dealer, or any discharge, termination, cancellation, frustration, invalidity or unenforceability hereof; (vii) any defect in title to or condition of any item of the Collateral; (viii) any merger or consolidation of any Dealer into or with any other entity; and (ix) any other condition or circumstance which might otherwise constitute a legal or equitable discharge, release, defense, or limitation arising out of any laws of the United States of America or any state thereof or any other applicable jurisdiction. Each Dealer agrees that Lender shall not be required to file suit or proceed to obtain or assert a claim against any other Dealer or its assets, either before or as a condition to enforcing such first Dealer's liability hereunder. Lender shall have no duty to see any allocation of use or benefits of any item of Collateral subject hereto, regardless of any notice or request from any Dealer, all relations between or among Dealers being an internal matter for such Dealer and not for Lender. Lender shall not be obligated to release its security interest in any item of Collateral until all applicable preference periods have passed with respect to payments made to Lender by or on behalf of any and all Dealers.

[*Signature Page Follows*]

**IN WITNESS WHEREOF**, the parties hereto have entered into this Agreement as of the Effective Date first written above.

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| | | | |
|:---|:---|:---|:---|
| **Lender:** | **Lender:** | **Dealer:** | **Dealer:** |
| **RED OAK INVENTORY FINANCE, LLC** | **RED OAK INVENTORY FINANCE, LLC** | **OFF THE HOOK YACHT SALES NC, LLC, a** | **OFF THE HOOK YACHT SALES NC, LLC, a** |
|  |  | North Carolina limited liability company | North Carolina limited liability company |
| In its individual capacity and as agent for each Lender party hereto from time to time | In its individual capacity and as agent for each Lender party hereto from time to time |  |  |
| **By:** | /s/ Maureen Daiker | **By:** | /s/ Jason Ruegg |
| **Name:** | Maureen Daiker | **Name:** | Jason Ruegg |
| **Its:** | VP – Credit | **Its:** | Manager |
| **Address:** |  | **Address:** |  |
| **Email:** |  | **Email:** |  |

---

![](ex10-9_001.jpg)

**ADDENDUM TO CREDIT AND SECURITY AGREEMENT**

**(LETTER OF CREDIT)**

This Addendum to Credit and Security Agreement (Letter of Credit) (this "**Addendum**") is dated as of October 31, 2024 between Off The Hook Yacht Sales NC, LLC ("**Dealer**") and Red Oak Inventory Finance, LLC ("**Lender**"), and is an addendum to that certain Credit and Security Agreement dated as of October 31, 2024 (as amended, restated, supplemented, or otherwise modified from time to time, the "**Agreement**").

In addition to those Covenants set forth in Section 5 of the Agreement, Dealer has agreed to provide an irrevocable standby letter of credit to secure all of Obligations of Dealer owed to Lender.

In consideration of the mutual covenants and undertakings contained in this Addendum and in the Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Dealer and Lender agree as follows:

1. This Addendum is incorporated into the Agreement as if fully set forth therein, and each reference in the Agreement to "this Agreement", "hereunder", "herein", or words of like import referring to the Agreement shall mean and refer to the Agreement, as modified and/or amended by this Addendum. All terms governing the Agreement shall govern this Addendum. Unless otherwise defined in this Addendum, all capitalized terms used in this Addendum have the same meaning given to those terms in the Agreement.

2. On or before the date first stated above, or as otherwise agreed to between the parties in writing, Dealer shall obtain an irrevocable standby letter of credit (together with any letter of credit accepted by Lender as a replacement therefor, the "**Letter of Credit**") issued for the benefit of Lender. The Letter of Credit must be in a form, in a substance, and from an institution acceptable to Lender in its sole discretion. The Letter of Credit shall be issued as, and constitute, additional security for the Obligations. The Letter of Credit shall be in an amount of not less than $2,000,000 and for a term of twelve (12) months or longer.

3. An Event of Default shall occur if, at least sixty (60) days prior to each expiration date of the Letter of Credit, (a) the Letter of Credit is not extended for a term of twelve (12) months or longer, or (b) a new irrevocable standby letter of credit acceptable to Lender in its sole discretion and in the same amount and in form, substance and from an institution acceptable to Lender and for a term of twelve (12) months or longer is not provided to Lender as a replacement therefor.

4. Upon the occurrence of any Default, and in addition to all of Lender's other remedies available under the Agreement or applicable law, Lender shall have the option, but not the obligation, without notice or demand made upon Dealer to: (i) draw upon the Letter of Credit, (ii) apply the proceeds of any such draw to the repayment of the Obligations, and/or (iii) until all Obligations are performed or satisfied in full, hold the proceeds of any such draw as cash collateral to secure the Obligations.

4. Except as expressly amended by this Addendum, the Agreement shall remain unchanged and in full force and effect.

The parties hereto have executed this Addendum as of the date first set forth above.

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| | | | |
|:---|:---|:---|:---|
| **RED OAK INVENTORY FINANCE, LLC** | **RED OAK INVENTORY FINANCE, LLC** | **Off The Hook Yacht Sales NC, LLC** | **Off The Hook Yacht Sales NC, LLC** |
| **By:** | /s/ Maureen Daiker | **By:** | /s/ Jason Ruegg |
| **Name:** | Maureen Daiker | **Name:** | Jason Ruegg |
| **Its:** | VP – Credit | **Its:** | Manager |
| **Address:** |  | **Address:** |  |
| **Email:** |  | **Email:** |  |

---

![](ex10-9_001.jpg)

**AMENDED AND RESTATED GUARANTY**

This Amended and Restated Guaranty (as from time to time further amended, restated, modified or extended, as hereinafter defined, this "**Guaranty**") is executed as of October 31, 2024 (the "**Effective Date**") by the undersigned guarantor(s) (individually and collectively, "**Guarantor**") in favor of RED OAK INVENTORY FINANCE, LLC (as successor-in- interest of Triad Financial Services, Inc.), a Florida limited liability company (together with its successors and assigns, "**Red Oak**"), in its individual capacity and as agent for each Lender party to the Credit Agreement (as hereafter defined) from time to time (together with its successors and assigns, "**Lender**"), and amends and restates that certain Guaranty dated as of May 25, 2022 (as from time to time amended, restated, modified or extended, the "**Original Guaranty**") by Guarantor in favor of Triad Financial Services, Inc. (as predecessor-in-interest of Red Oak). For purposes of this Guaranty, "**Credit Agreement**" means that certain Credit and Security Agreement dated as of October 31, 2024, by and between Lender and Off The Hook Yacht Sales NC, LLC (together with its successors and permitted assigns and or any other person obligated under the Credit Agreement, individually and collectively, "**Obligor**"), as from time to time amended, restated, modified or extended, and inclusive of any Statement of Financial Transaction and all agreements, instruments and documents executed or delivered in connection with the Obligations (as defined in Credit Agreement) or otherwise related thereto. This Guaranty constitutes an amendment and restatement of the Original Guaranty, and the execution and delivery hereof and the consummation of the transactions contemplated hereby are not intended by the parties to be, and shall not constitute, a novation or an accord and satisfaction of the rights or obligations under the Original Guaranty, all of which shall continue in full force and effect as amended and restated hereby.

**RECITALS**

A. Lender may, from time to time, enter into agreements with Obligor, including but not limited to the Credit Agreement; and

B. Lender is unwilling to enter into agreements with Obligor unless Guarantor unconditionally guarantees to Lender the payment and/or performance of all obligations of Obligor at any time owing to Lender pursuant to the terms and conditions set forth herein.

**AGREEMENT**

With knowledge that Lender will enter into agreements with Obligor in reliance upon the existence of this Guaranty, Guarantor agrees with Lender as follows:

1. <u>Guaranty</u>. Guarantor unconditionally and irrevocably guarantees to Lender (except as hereinafter expressly provided as to prospective revocability), without off-set or deduction, the prompt payment and/or performance of all indebtedness, obligations and liabilities of Obligor at any time owing to Lender, whether direct or indirect, matured or unmatured, primary or secondary, or certain or contingent (individually, a "**Guaranteed Obligation**" and, collectively, the "**Guaranteed Obligations**"). This Guaranty is a guaranty of payment and not a guaranty of collection. Guarantor guarantees to Lender the punctual and faithful performance by Obligor of each Guaranteed Obligation. If Obligor defaults in the payment or performance of any Guaranteed Obligation, if there exists any event or condition which, with notice and/or the passage of time, would constitute a default under any Guaranteed Obligation, or if there is a liquidation, bankruptcy, assignment for the benefit of creditors or similar proceeding filed or commenced by or against Obligor or Guarantor affecting the status, existence, assets or obligations of Obligor, Guarantor shall pay directly to Lender the sums which Obligor is obligated to pay to Lender, whether by acceleration or otherwise, and promptly perform all other Guaranteed Obligations. Guarantor acknowledges that this Guaranty covers any payments received by Lender by or on behalf of Obligor that are set aside, recovered, rescinded, or required to be returned, whether as a result of Obligor's bankruptcy, reorganization or otherwise. Any payment or performance made by Guarantor shall be effective to reduce or discharge such Guaranteed Obligations only upon contemporaneous receipt by Red Oak of a written transmittal document or remittance advice advising Red Oak of such payment or performance under this Guaranty and provided no such payment or performance is set aside, recovered, rescinded or required to be returned, whether as a result of Guarantor's bankruptcy, reorganization or otherwise.

2. <u>Continuing Nature of Guaranty</u>. This Guaranty is a continuing guarantee and shall apply without regard to the form or the amount of the Guaranteed Obligations in existence at any time. Guarantor may prospectively revoke this Guaranty by sending written notice, by certified mail, return receipt requested, to Lender at the address for Lender specified below (the "**Revocation Notice**"). The revocation of this Guaranty shall not be effective with respect to any Guaranteed Obligation arising on or prior to the date occurring fifteen (15) days after Lender's receipt of the Revocation Notice (the "**Revocation Date**") or arising at any time after the Revocation Date, if arising as the result of a commitment made by Lender to Obligor, or other transaction or circumstances, on or prior to the Revocation Date.

3. <u>Absolute Nature of Guaranty</u>. The obligations of Guarantor under this Guaranty are absolute and unconditional. Guarantor shall not be released from such obligations for any reason, nor shall such obligations be reduced, diminished or discharged for any reason, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Modifications and Indulgences</u>. Any increase, acceleration, modification, renewal or alteration of any
 agreement, document or instrument relating to any Guaranteed Obligation, or any indulgence,
 adjustment, preference, extension or compromise made by Lender in favor of Obligor or Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Condition of Obligor or Guarantor</u>. Any insolvency, bankruptcy, arrangement, adjustment, composition,
 liquidation, disability, dissolution or similar proceeding affecting Obligor or Guarantor;
 any sale, lease or other disposition of any of the assets of Obligor or Guarantor; or any
 reorganization of, or change in the composition of the shareholders, partners or members
 of, Obligor or Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Invalidity of Guaranteed Obligations</u>. The invalidity, illegality or unenforceability of any Guaranteed
 Obligation for any reason whatsoever, including, but not limited to: the existence of valid
 defenses (including, without limitation, waiver, release, discharge in bankruptcy, statute
 of limitations, res judicata, statute of frauds, anti- deficiency statute, fraud, or incapacity),
 counterclaims or off-sets to any Guaranteed Obligation; the violation of applicable usury
 or other laws in connection with any Guaranteed Obligation; or the inauthenticity of any
 document or instrument relating to the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Release of Obligor</u>. Any complete or partial release of Obligor
 or any other party from any Guaranteed Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Release or Substitution of Collateral; Care of Collateral; Status of Liens</u>. Any release, surrender, substitution,
 exchange, deterioration, waste, loss or impairment of any collateral securing payment of
 any Guaranteed Obligation (the "**Collateral** "), whether negligent or willful;
 the failure of Lender or any other party to exercise reasonable care in the preservation,
 protection, sale or other treatment of any of the Collateral; the failure of Lender to create
 or perfect any security interest intended to be given by Obligor in connection with any Guaranteed
 Obligation (a "**Security Interest** "); the unenforceability of any Security
 Interest; the subordination of any Security Interest to any other lien or encumbrance; or
 the taking or accepting by Lender of any other security for, or assurance of payment of,
 any Guaranteed Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Other Action or Inaction</u>. Any other action or inaction on the part of Lender, whether or not such
 action or inaction prejudices Guarantor or increases the likelihood that Guarantor will be
 required to pay or perform any Guaranteed Obligation pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Individual Guarantor</u>. If the undersigned Guarantor is an individual, this Guaranty shall not be
 discharged or affected by the death or incompetency of such individual Guarantor, but shall
 bind such individual Guarantor's heirs, executors, administrators, and assigns.

Guarantor shall discharge the Guaranteed Obligations when due, including any accelerated maturity, notwithstanding any occurrence, circumstance, event, action or omission whatsoever, whether or not particularly described herein. Guarantor shall be and remain liable for any deficiency remaining after any foreclosure of any pledge or Security Interest against the Collateral regardless of any action or inaction by Lender in such foreclosure and regardless of any discharge of Obligor. Guarantor is not entering into this Guaranty in reliance on the value or the availability of any of the Collateral. Guarantor acknowledges that Guarantor may be required to pay the Guaranteed Obligations, in full, without the assistance or support of any other party. Guarantor has not been induced to enter into this Guaranty on the basis that any party other than Obligor will be liable to perform any Guaranteed Obligation or that Lender will look to any other party to perform any Guaranteed Obligation.

4. <u>Waivers</u>. Guarantor waives:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Action Against Others</u>. Any right to require Lender to: institute suit or exhaust remedies against Obligor
 or any other party liable for any Guaranteed Obligation; enforce Lender's rights in the Collateral
 or other security which is at any time given to secure any Guaranteed Obligation; enforce
 Lender's rights against any other Guarantor of any Guaranteed Obligation; join Obligor or
 any other party liable for any Guaranteed Obligation in any action seeking to enforce this
 Guaranty; or exhaust any other remedies available to Lender or resort to any other means
 of obtaining payment or performance of any Guaranteed Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notices</u>.
 Notice of the amount of credit extended by Lender to Obligor at any time, whether primary
 or secondary; notice of the renewal, modification, extension, acceleration or other change
 of any Guaranteed Obligation or the terms thereof or any document or instrument relating
 thereto; notice of a default or other non-performance by Obligor in connection with any Guaranteed
 Obligation; notice of the transfer or disposition by Lender of any Guaranteed Obligation;
 notice of the repossession, sale or other disposition of any of the Collateral; notice of
 the acceptance of this Guaranty by Lender; demand and presentation for payment upon Obligor
 or any other party liable for any Guaranteed Obligation; protest, notice of protest and diligence
 of bringing suit against Obligor or any other party; and any other action or inaction on
 the part of Lender in connection with this Guaranty or any Guaranteed Obligation

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subrogation</u>.
 Any right which Guarantor may at any time have against Obligor, or any other party liable
 for any Guaranteed Obligation, as the result of the performance by Guarantor of its obligations
 under this Guaranty, including, but not limited to, contractual, statutory and common law
 rights of subrogation, contribution, reimbursement, recourse and indemnification.

5. <u>Subordination</u>. Any and all indebtedness of Obligor now or hereafter owed to Guarantor or any affiliate of Guarantor is hereby subordinated to the Guaranteed Obligations. This subordination includes, but is not limited to, payment and any lien or security interest.

6. <u>Representations and Warranties</u>. Guarantor represents and warrants to Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Benefit</u>.
 Guarantor has received, or will receive, direct or indirect benefit from the creation of
 the Guaranteed Obligations. The financial accommodations provided to Obligor are for the
 benefit of Guarantor. The granting of this Guaranty will not result in the undersigned's
 liabilities (including the maximum amount of liabilities that may be reasonably expected
 to result from all contingent liabilities and giving effect to rights of contribution and
 subrogation) exceeding the fair market value of its assets, and the performance of the obligations
 of the undersigned hereunder will not cause the undersigned to exceed its ability to pay
 its debts as they mature, and this Guaranty is made without any intent to hinder, delay or
 defraud either present or future creditors, purchasers or other interested persons.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Representation or Warranty by Lender</u>. Neither Lender nor any other Lender party has made any representation
 or warranty to Guarantor in order to induce Guarantor to execute this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Financial and Other Information</u>. Guarantor will deliver promptly to Lender such information regarding
 Guarantor, including but not limited to Guarantor's contact information and financial
 condition, which Lender may reasonably request from time to time. Lender may provide to any
 third party any credit, financial or other information of and/or relating to Guarantor that
 Lender may at any time possess, and Lender is authorized to obtain from any manufacturer,
 distributor or other party any credit, financial or other information of and/or relating
 to Guarantor, Guarantor's principals, and others relating to Guarantor, whether currently
 or hereafter in the possession of any such parties. Guarantor authorizes Lender to obtain
 and use any credit information from any credit reporting entity pertaining to Guarantor's
 credit history and/or credit worthiness, as well as reviewing the credit for increasing or decreasing Obligor's credit
limit, taking collection actions and for any other business purpose. In addition, if any undersigned Guarantor is an individual, upon
Lender's request, such individual Guarantor will deliver to Lender copies of such individual Guarantor's complete financial
statements, reflecting such individual Guarantor's assets, liabilities, net worth and income and expenses in reasonable detail,
along with copies of such individual Guarantor's most recent tax returns and an updated personal financial statement.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Financial Condition</u>.
 As of the date hereof, and after giving effect to this Guaranty and the contingent obligations
 contained herein, (i) Guarantor is solvent and has assets which, when fairly valued, exceed
 its liabilities; (ii) there has not been any material adverse change in Guarantor's
 financial condition since the first review by Lender; and (iii) as of the date hereof and
until the payment and performance in full of all Guaranteed Obligations, there will not be any material adverse change in Guarantor's
financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Authority and Binding Effect</u>. If any undersigned Guarantor is not an individual, such Guarantor has
 full authority to execute this Guaranty on behalf of such Guarantor, such Guarantor's
 execution of this Guaranty is valid and binding upon such Guarantor without the requirement
 of any other approval or authorization, and each person signing on behalf of such Guarantor
 entity represents and warrants that he or she has the authority to sign on behalf of such
 Guarantor entity and by so signing to bind such Guarantor entity hereunder. If any undersigned
 Guarantor is an individual, such individual Guarantor represents and warrants this Guaranty
 is being executed by such individual Guarantor as an individual in his or her own capacity
 and not as a director, officer, employee, or representative for any corporation, limited
 liability company, partnership or any other entity.

7. JURY TRIAL WAIVER; CONSENT TO JURISDICTION; PUNITIVE DAMAGE WAIVER.

&nbsp;&nbsp;&nbsp;&nbsp;(a) ANY LEGAL PROCEEDING
 WITH RESPECT TO ANY DISPUTE HEREUNDER WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION
 BY A JUDGE WITHOUT A JURY. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, GUARANTOR AND
 LENDER IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUCH PROCEEDING. GUARANTOR HEREBY
 CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN
 THE STATE OF GEORGIA, INCLUDING WITHOUT LIMITATION ANY STATE COURT LOCATED IN FULTON COUNTY
 AND ANY FEDERAL COURT LOCATED IN THE NORTHERN DISTRICT OF GEORGIA, AND GUARANTOR HEREBY WAIVES
 ANY OBJECTION THAT IT MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT
 OF ANY ACTION OR PROCEEDING IN ANY SUCH COURT. LENDER AND GUARANTOR HEREBY WAIVE ANY RIGHT
 TO PUNITIVE DAMAGES OF ANY KIND AGAINST ONE ANOTHER IN ANY PROCEEDING OR AWARD RELATING TO
 THIS GUARANTY.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Prejudgment and Provisional Remedies</u>. Nothing herein will be construed to prevent Lender's or Guarantor's
 use of bankruptcy, receivership, injunction, repossession, replevin, claim and delivery,
 sequestration, seizure, attachment, foreclosure, and/or any other prejudgment or provisional
 action or remedy relating to any Collateral or for any current or future debt owed by either
 party to the other before a court of competent jurisdiction, and Lender is expressly entitled,
 notwithstanding <u>Section 7(a)</u> hereof, to avail itself of the jurisdiction of any court
 of competent jurisdiction over the Collateral, including, but not limited to, any court where
 any portion of the Collateral may be physically located.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Costs of Collection and Attorneys' Fees</u>. Upon the occurrence of any Default (as defined in the Credit
 Agreement), Lender shall be entitled to collect from Guarantor all expenses of pursuing its
 rights and remedies under the Credit Agreement, this Guaranty, and any other documents relating
 thereto or hereto, including, but not limited to, all attorneys' fees and other legal
 expenses incurred by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Survival After Termination</u>. The provisions of this <u>Section 7</u> will survive the termination of
 this Guaranty. All rights, remedies, privileges and indemnities set forth in this Guaranty
 and the Credit Agreement in favor of Lender and each Lender Indemnitee (as defined in the
 Credit Agreement) are expressly made for the benefit of and shall be enforceable by each
 of them and their respective successors and assigns, and shall survive any expiration or
 termination of this Guaranty and/or the Credit Agreement.

8. <u>Red Oak as Agent</u>. Except upon notice by Red Oak providing alternate instructions on a particular occasion or generally, Red Oak acts as agent for each Lender, and Guarantor agrees to deal exclusively with Red Oak for all purposes in connection with this Guaranty notwithstanding any other terms set forth in this Guaranty. By way of example and not in limitation, except upon notice by Red Oak providing alternate instructions on a particular occasion or generally, as to all provisions requiring or allowing Guarantor to provide information and/or any notice to Lender, and for Guarantor to make payments to Lender, all such information and/or notice shall be provided, and all such payments shall be remitted, exclusively to Red Oak at such address and in such manner as Red Oak may instruct from time to time. Likewise, except as determined by Red Oak on a particular occasion or generally, Red Oak shall have exclusive authority to act as Lender with respect to Guarantor in connection with this Guaranty, including but not limited to for purposes of issuing default or other notices to Guarantor, considering and/or granting any requests for amendment and/or waivers and exercising remedies after any Default with respect to Guarantor or otherwise in connection with the Guaranteed Obligations. Guarantor understands and agrees that (a) Red Oak, each Lender and the manufacturer of any item of Collateral are not affiliated and neither Red Oak nor any Lender shall have any liability to Guarantor or otherwise for the actions or omissions of such manufacturer(s) or other third parties; and (b) Red Oak and each Lender may share and exchange with the any manufacturer(s) of Collateral and any other third party as Red Oak or such Lender determines appropriate any credit, financial and other information as further set forth in <u>Section 6(c)</u> above.

9. <u>Governing Law</u>. This Guaranty has been substantially negotiated in the State of Georgia. This Guaranty shall be governed, construed and enforced in accordance with the laws of the State of Georgia without regard to conflicts of laws principles that might refer the governance, construction or enforcement of this Guaranty to the laws of another jurisdiction. For the avoidance of doubt, the parties agree that the laws of the State of Georgia shall govern the resolution of any Dispute.

10. <u>Miscellaneous</u>. If any provision of this Guaranty, the Credit Agreement and any other documents relating hereto or thereto shall be prohibited or invalid under applicable law, such provision shall be ineffective but only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Guaranty, the Credit Agreement and any other documents relating hereto or thereto. The headings contained in this Guaranty are inserted for convenience only and shall not affect the meaning or interpretation of this Guaranty. All references herein to Guarantor, any person, document or other nouns of reference mean both the singular and plural form, as the case may be, and the term "person" shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, any government or any political subdivision thereof, or other entity, and the term "entity" shall mean any such "person" other than an individual. All references to the parties herein shall also include any person which directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with such party (each an "**affiliate**"). Any waiver of a breach of this Guaranty shall not be construed to be a continuing waiver or consent to any subsequent breach by either party hereto. This Guaranty shall not be deemed to create any right in any party except as provided herein. This Guaranty shall inure to the benefit of Lender, together with the successors and assigns of Lender and shall be binding upon Guarantor and the successors and assigns of Guarantor. Guarantor agrees that Lender may, without the consent of, or notice to, Guarantor, assign all or any portion of its rights hereunder to any other party to which any Guaranteed Obligation is transferred, assigned or negotiated. Guarantor shall not assign its rights or delegate its obligations under this Guaranty, in whole or in part, without the prior written consent of Lender. Guarantor shall be liable for all attorneys' fees and other costs and expenses incurred by Lender in connection with Lender's collection of the Guaranteed Obligations, and enforcement of this Guaranty. Any notices, demands or other communications hereunder shall be in writing, and shall be deemed to have been given and be effective upon the earlier of (i) delivery by personal delivery, (ii) one (1) business day after being sent by overnight courier, (iii) three (3) days after the mailing thereof by registered or certified mail, postage prepaid, return receipt requested, (iv) the date of posting by Lender on the website (as mentioned in the Credit Agreement), or (v) upon affirmative confirmation of receipt by email, if sent during normal business hours, or on the next business day if sent after normal business hours, in each case addressed to addresses set forth below for each party or such other address as any party shall have designated by notice in writing to the other parties. This Guaranty may be executed and delivered by original signature or facsimile, and in one or more counterparts, each of which shall be deemed to be an original copy of this Guaranty and all of which, when taken together, shall be deemed to constitute one and the same Guaranty. The parties (or either of them) may sign this Guaranty manually or by Electronic Signature (as defined below). A party's delivery of a counterpart of this Guaranty containing or otherwise bearing or having associated therewith an Electronic Signature (i) shall be deemed to be conclusive proof of such party's intent and agreement to authenticate this writing and to form and to be bound by this Guaranty, and (ii) shall have the same force and effect as delivery of a counterpart bearing an original manual signature. "**Electronic Signature**" means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record (including, without limitation, facsimile, email electronic signatures, or manual signatures scanned and transmitted by e-mail as a PDF). The words "execute," "execution," "executed," "sign," "signed," "signature," "initials" and words of similar import in this Guaranty shall include Electronic Signatures. This Guaranty, the Credit Agreement and any other documents relating hereto or thereto contain the entire agreement of the parties hereto with respect to the subject matter hereof, collectively set forth the entire understanding of the parties with respect to the subject matter hereof, and collectively supersede any other agreements or understandings, oral or written, between the parties with respect to the subject matter hereof. This Guaranty may not be amended, modified or supplemented in any respect, except by a subsequent written agreement executed by the parties hereto. This Guaranty may not be varied or modified by statement, conduct or act of any of the parties, except by a writing specifically referring to this Guaranty and signed by all parties hereto. No course of dealing, course of performance, or usage of trade shall be considered in the interpretation or enforcement of this Guaranty. Guarantor waives any right it may have to introduce evidence of any such course of dealing, course of performance or usage of trade. This Guaranty is not to be construed in any way against or in favor of any party hereto solely because one party drafted this Guaranty.

11. <u>Multiple Guarantors</u>. If more than one Guarantor executes this Guaranty, each Guarantor hereby agrees to be jointly and severally responsible for fulfilling all Guaranteed Obligations hereunder. All affirmative representations, covenants, agreements and obligations imposed on "Guarantor" hereunder shall constitute representations, covenants, agreements and obligations binding on all Guarantors. All representations, covenants, agreements and obligations shall also constitute representations, covenants agreements and obligations of all Guarantors but shall be breached hereunder if breached by any Guarantor. Insofar as Lender is concerned, the act of any Guarantor shall bind all other Guarantors, and Lender's rights, remedies, powers privileges and indemnities (and each Guarantor's rights and duties to Lender) shall not be affected by any notice or action to the contrary. Lender shall be fully protected, as to each and all Guarantor, in dealing with any one Guarantor. A Guarantor's obligations hereunder shall not be affected by any action taken or not taken by Lender, by any lack of prior enforcement or retention of any rights against any Guarantor, by any illegality, unenforceability, or invalidity of any Guarantor's obligations, or by any circumstance or condition, including, without limitation, (i) any termination, amendment, or modification of, or supplement hereto; (ii) any action by any Guarantor with respect to any item of Collateral; (iii) any failure or delay to conform or comply with any term hereof; (iv) any waiver, consent, extension, indulgence, compromise, settlement, release, or other action or inaction under or in respect hereof, or any exercise or non- exercise of any right, remedy, power, privilege or indemnity under or in respect hereof; (v) any voluntary or involuntary bankruptcy, insolvency, or similar proceeding with respect to any Guarantor; (vi) any limitation on the liability or obligations of any Guarantor, or any discharge, termination, cancellation, frustration, invalidity or unenforceability hereof; (vii) any defect in title to or condition of any item of the Collateral; (viii) any merger or consolidation of any Guarantor into or with any other entity; and (ix) any other condition or circumstance which might otherwise constitute a legal or equitable discharge, release, defense, or limitation arising out of any laws of the United States of America or any state thereof or any other applicable jurisdiction. Each Guarantor agrees that Lender shall not be required to file suit or proceed to obtain or assert a claim against any other Guarantor or its assets, either before or as a condition to enforcing such first Guarantor's liability hereunder. Lender shall have no duty to see any allocation of use or benefits of any item of Collateral subject hereto, regardless of any notice or request from any Guarantor, all relations between or among Guarantors being an internal matter for such Guarantor and not for Lender. To the extent that this Guaranty is secured by property of any Guarantor or any other party, Lender shall not be obligated to release its security interest in such property until all applicable preference periods have passed with respect to payments made to Lender by or on behalf of Guarantor and/or Obligor.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned Guarantor has executed this Guaranty, intending to be legally bound hereby, as of the Effective Date set forth above.

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|:---|:---|
| **GUARANTOR:** | **GUARANTOR:** |
| By: | /s/ Jason Ruegg |
| Name: | Jason Ruegg |
| Address: |  |
| Email: |  |

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**Address for Notices to Lender:**<br>Red Oak Inventory Finance, LLC<br> PO Box 326<br> Alpharetta, GA 30009<br>

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**PROGRAM OUTLINE**

**OFF THE HOOK YACHT SALES NC LLC ("COMPANY")**

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|:---|:---|
| **PROGRAM EFFECTIVE DATE:** <br>| Upon satisfaction of credit approval conditions<br>|
| **FINANCING BY:** | Red Oak Inventory Finance, LLC ("ROIF") |
| **PROGRAM PROPOSAL:** | $25,000,000 floor plan credit facility to finance new or used boat purchases from third party sources. Credit facility is subject to satisfaction of credit approval conditions and documentation. |
| **FINANCED AMOUNT-USED:** | JD Power Connect is the primary valuation guide with BUC as secondary.<br> ROIF will advance the lesser of:<br> (1) 100% of the purchase price<br> (2) 100% of the JD Power wholesale value (no accessories)<br> (3) 80% of BUC low retail, 3rd party accredited survey, comps |
| **FINANCED AMOUNT-NEW** <br>| 100% of the OEM invoice if ROIF has an OEM agreement. Currently Yellowfin is eligible for 100% financing. |
| **PRODUCT FINANCED:** | New or used boats with outboard engines as a package.<br> Used boats must be 15 model years or less. Models over 15 years will be considered on an exception basis. |
| **REPAYMENT TERMS:** | Pay as Sold |
| **INTEREST RATE TERMS-USED:** <br>| SOFR plus 4.36% Day 1-360<br> SOFR plus 6.36% Day 361-540<br> SOFR plus 9.10% Day 541 thereafter |
| **INTERST RATE TERMS-NEW:** | SOFR plus 4.11% Day 1-360<br> SOFR plus 6.11% Day 361-540<br> SOFR plus 8.85% Day 541 thereafter |
| **BASE RATE DEFINITION:** | SOFR is defined as the 30 day Secured Overnight Financing Rate and benchmarked by the CME TERM SOFR published reference rates as outlined in the ROIF CASA section 9 (i) under Calculation of Charges. |
| **ADVANCE FEE TERMS:** | .25% of the advance amount for boats equal to or less than $2M.<br> .50% of the advance amount for boats greater than $2M.<br> Annual fee-cap of $125K for advances less than $2M. |

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| **FUNDING:** | Funding will take place via ACH after the Company provides a full documentation package request to ROIF. Wire funding is available upon request in urgent closing situations. The Company will send ROIF a wire confirmation of their payment to the seller within 2 business days of ROIF's funding to the Company.<br>International boats will require a Bill of Lading, insurance certificate with ROIF listed as loss payee, picture of the HIN plate and confirmation the vessel has been loaded on the carrier prior to funding. | Funding will take place via ACH after the Company provides a full documentation package request to ROIF. Wire funding is available upon request in urgent closing situations. The Company will send ROIF a wire confirmation of their payment to the seller within 2 business days of ROIF's funding to the Company.<br>International boats will require a Bill of Lading, insurance certificate with ROIF listed as loss payee, picture of the HIN plate and confirmation the vessel has been loaded on the carrier prior to funding. |
| **CURTAILMENTS-USED/NOR-TECH:** <br> **(BOATS LESS THAN/EQUAL TO $2M)** | Months 1-4<br> Months 5-17<br> Months 18+ | No curtailments<br> 3.00% of the original advance due monthly<br> 5.00% of the original advance due monthly<br>|
|  | (2 months of winter skips at Company's designation) | (2 months of winter skips at Company's designation) |
| **CURTAILMENTS-USED/NOR-TECH:**<br> **(BOATS GREATER THAN $2M)**  | Months 1-3<br> Months 4-14<br> Month 15 | No curtailments<br> 5% of the original advance due monthly<br> Due in full |
|  | (No skips) | (No skips) |
| **CURTAILMENTS-NEW YELLOWFIN:** <br>| Months 1-8<br> Months 9-17<br> Months 18+ | No curtailments<br> 3.00% of the original invoice amount due monthly<br> 5.00% of the original invoice amount due monthly<br>|
|  | (2 months of winter skips at Company's designation) | (2 months of winter skips at Company's designation) |
| **COLLATERAL INSPECTIONS:** | Conducted on a 30 to 45-day cycle. Inventory must be located at an address listed on the certificate of insurance. | Conducted on a 30 to 45-day cycle. Inventory must be located at an address listed on the certificate of insurance. |
| **TITLE RETENTION:** | Advances under $500,000: Company will retain titles and lien releases in their possession and allow inspection at monthly audits. Company will provide ROIF with copies of the title (front/back) reflecting a proper assignment of ownership and signed release of any existing lien/mortgage.<br>Advances of $500,000 and greater: Company will mail the original title and lien release cards upon receipt, not later than 30 days after initial advance. Titles must be properly assigned to the Company with a signed release by the existing lien or mortgage holder. ROIF will overnight titles and the lien release card to the Company upon payment in full. | Advances under $500,000: Company will retain titles and lien releases in their possession and allow inspection at monthly audits. Company will provide ROIF with copies of the title (front/back) reflecting a proper assignment of ownership and signed release of any existing lien/mortgage.<br>Advances of $500,000 and greater: Company will mail the original title and lien release cards upon receipt, not later than 30 days after initial advance. Titles must be properly assigned to the Company with a signed release by the existing lien or mortgage holder. ROIF will overnight titles and the lien release card to the Company upon payment in full. |

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Page **2** of **3**

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| | |
|:---|:---|
| ![](ex10-9_002.jpg) | ![](ex10-9_003.jpg) |

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| | |
|:---|:---|
| **FINANCIAL STATEMENT REPORTING:** | Annual CPA Reviewed FYE and tax returns. Company prepared interims on a quarterly basis within 45 days of the quarter end.<br> PFS of ownership annually. |
| **CONDITIONS:** | 1st UCC broad lien position<br> $2M ILOC by an approved ROIF bank<br> Insurance limit equal to or greater than 75% of the line amount |

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*The contents of this proposal should be held in strict confidence between Company and ROIF. This is a confidential proposal and proprietary information owned by ROIF.*

 

*This proposal is not a commitment of any kind on the part of ROIF. Company or ROIF can reject all proposals at their respective discretion. There are no obligations from either party of any kind with respect to the proposal outside of the confidentiality of the contents within the proposal. The terms and conditions of this proposal are subject to financial analysis, credit review and final approval by ROIF.*

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| | |
|:---|:---|
| **RED OAK INVENTORY FINANCE, LLC** | **RED OAK INVENTORY FINANCE, LLC** |
| By: | /s/ Maureen Daiker |
| Print Name: | Maureen Daiker |
| Title: | Vice President Credit |
| **AGREED AND ACKNOWLEDGED:** | **AGREED AND ACKNOWLEDGED:** |
| **OFF THE HOOK YACHT SALES NC, LLC** | **OFF THE HOOK YACHT SALES NC, LLC** |
| BY: | /s/ Jason Ruegg |
| Print Name: | Jason Ruegg |
| Title: | Member |

---

Page **3** of **3**

**ELECTRONIC RECORD AND SIGNATURE DISCLOSURE**

From time to time, Red Oak Inventory Finance (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to 'I agree to use electronic records and signatures' before clicking 'CONTINUE' within the DocuSign system.

**Getting paper copies**

At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.

**Withdrawing your consent**

If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.

**Consequences of changing your mind**

If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us.

**All notices and disclosures will be sent to you electronically**

Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

**How to contact Red Oak Inventory Finance:**

You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to:

**To advise Red Oak Inventory Finance of your new email address**

To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address.

If you created a DocuSign account, you may update it with your new email address through your account preferences.

**To request paper copies from Red Oak Inventory Finance**

To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email to and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any.

**To withdraw your consent with Red Oak Inventory Finance**

To inform us that you no longer wish to receive future notices and disclosures in electronic format you may:

i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may;

ii. send us an email to and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..

**Required hardware and software**

The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: <u>https://support.docusign.com/guides/signer-guide- signing-system-requirements</u>.

**Acknowledging your access and consent to receive and sign documents electronically**

To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to 'I agree to use electronic records and signatures' before clicking 'CONTINUE' within the DocuSign system.

By selecting the check-box next to 'I agree to use electronic records and signatures', you confirm that:

● You can access and read this Electronic Record and Signature Disclosure; and

● You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and

● Until or unless you notify Red Oak Inventory Finance as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by Red Oak Inventory Finance during the course of your relationship with Red Oak Inventory Finance.

## Exhibit 10.10

**Exhibit 10.10**

![](ex10-10_001.jpg)

**AMENDED AND RESTATED GUARANTY**

This Amended and Restated Guaranty (as from time to time further amended, restated, modified or extended, as hereinafter defined, this "**Guaranty**") is executed as of October 31, 2024 (the "**Effective Date**") by the undersigned guarantor(s) (individually and collectively, "**Guarantor**") in favor of RED OAK INVENTORY FINANCE, LLC (as successor-in- interest of Triad Financial Services, Inc.), a Florida limited liability company (together with its successors and assigns, "**Red Oak**"), in its individual capacity and as agent for each Lender party to the Credit Agreement (as hereafter defined) from time to time (together with its successors and assigns, "**Lender**"), and amends and restates that certain Guaranty dated as of May 25, 2022 (as from time to time amended, restated, modified or extended, the "**Original Guaranty**") by Guarantor in favor of Triad Financial Services, Inc. (as predecessor-in-interest of Red Oak). For purposes of this Guaranty, "**Credit Agreement**" means that certain Credit and Security Agreement dated as of October 31, 2024, by and between Lender and Off The Hook Yacht Sales NC, LLC (together with its successors and permitted assigns and or any other person obligated under the Credit Agreement, individually and collectively, "**Obligor**"), as from time to time amended, restated, modified or extended, and inclusive of any Statement of Financial Transaction and all agreements, instruments and documents executed or delivered in connection with the Obligations (as defined in Credit Agreement) or otherwise related thereto. This Guaranty constitutes an amendment and restatement of the Original Guaranty, and the execution and delivery hereof and the consummation of the transactions contemplated hereby are not intended by the parties to be, and shall not constitute, a novation or an accord and satisfaction of the rights or obligations under the Original Guaranty, all of which shall continue in full force and effect as amended and restated hereby.

**RECITALS**

A. Lender may, from time to time, enter into agreements with Obligor, including but not limited to the Credit Agreement; and

B. Lender is unwilling to enter into agreements with Obligor unless Guarantor unconditionally guarantees to Lender the payment and/or performance of all obligations of Obligor at any time owing to Lender pursuant to the terms and conditions set forth herein.

**AGREEMENT**

With knowledge that Lender will enter into agreements with Obligor in reliance upon the existence of this Guaranty, Guarantor agrees with Lender as follows:

1. <u>Guaranty</u>. Guarantor unconditionally and irrevocably guarantees to Lender (except as hereinafter expressly provided as to prospective revocability), without off-set or deduction, the prompt payment and/or performance of all indebtedness, obligations and liabilities of Obligor at any time owing to Lender, whether direct or indirect, matured or unmatured, primary or secondary, or certain or contingent (individually, a "**Guaranteed Obligation**" and, collectively, the "**Guaranteed Obligations**"). This Guaranty is a guaranty of payment and not a guaranty of collection. Guarantor guarantees to Lender the punctual and faithful performance by Obligor of each Guaranteed Obligation. If Obligor defaults in the payment or performance of any Guaranteed Obligation, if there exists any event or condition which, with notice and/or the passage of time, would constitute a default under any Guaranteed Obligation, or if there is a liquidation, bankruptcy, assignment for the benefit of creditors or similar proceeding filed or commenced by or against Obligor or Guarantor affecting the status, existence, assets or obligations of Obligor, Guarantor shall pay directly to Lender the sums which Obligor is obligated to pay to Lender, whether by acceleration or otherwise, and promptly perform all other Guaranteed Obligations. Guarantor acknowledges that this Guaranty covers any payments received by Lender by or on behalf of Obligor that are set aside, recovered, rescinded, or required to be returned, whether as a result of Obligor's bankruptcy, reorganization or otherwise. Any payment or performance made by Guarantor shall be effective to reduce or discharge such Guaranteed Obligations only upon contemporaneous receipt by Red Oak of a written transmittal document or remittance advice advising Red Oak -5 of such payment or performance under this Guaranty and provided no such payment or performance is set aside, recovered, rescinded or required to be returned, whether as a result of Guarantor's bankruptcy, reorganization or otherwise.

2. <u>Continuing Nature of Guaranty</u>. This Guaranty is a continuing guarantee and shall apply without regard to the form or the amount of the Guaranteed Obligations in existence at any time. Guarantor may prospectively revoke this Guaranty by sending written notice, by certified mail, return receipt requested, to Lender at the address for Lender specified below (the "**Revocation Notice**"). The revocation of this Guaranty shall not be effective with respect to any Guaranteed Obligation arising on or prior to the date occurring fifteen (15) days after Lender's receipt of the Revocation Notice (the "**Revocation Date**") or arising at any time after the Revocation Date, if arising as the result of a commitment made by Lender to Obligor, or other transaction or circumstances, on or prior to the Revocation Date.

3. <u>Absolute Nature of Guaranty</u>. The obligations of Guarantor under this Guaranty are absolute and unconditional. Guarantor shall not be released from such obligations for any reason, nor shall such obligations be reduced, diminished or discharged for any reason, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Modifications and Indulgences</u>. Any increase, acceleration, modification, renewal or alteration of any
 agreement, document or instrument relating to any Guaranteed Obligation, or any indulgence,
 adjustment, preference, extension or compromise made by Lender in favor of Obligor or Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Condition of Obligor or Guarantor</u>. Any insolvency, bankruptcy, arrangement, adjustment, composition,
 liquidation, disability, dissolution or similar proceeding affecting Obligor or Guarantor;
 any sale, lease or other disposition of any of the assets of Obligor or Guarantor; or any
 reorganization of, or change in the composition of the shareholders, partners or members
 of, Obligor or Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Invalidity of Guaranteed Obligations</u>. The invalidity, illegality or unenforceability of any Guaranteed
 Obligation for any reason whatsoever, including, but not limited to: the existence of valid
 defenses (including, without limitation, waiver, release, discharge in bankruptcy, statute
 of limitations, res judicata, statute of frauds, anti- deficiency statute, fraud, or incapacity),
 counterclaims or off-sets to any Guaranteed Obligation; the violation of applicable usury
 or other laws in connection with any Guaranteed Obligation; or the inauthenticity of any
 document or instrument relating to the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Release of Obligor</u>. Any complete or partial release of Obligor or any other party from any Guaranteed
 Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Release or Substitution of Collateral; Care of Collateral; Status of Liens</u>. Any release, surrender,
 substitution, exchange, deterioration, waste, loss or impairment of any collateral securing
 payment of any Guaranteed Obligation (the "**Collateral** "), whether negligent
 or willful; the failure of Lender or any other party to exercise reasonable care in the preservation,
 protection, sale or other treatment of any of the Collateral; the failure of Lender to create
 or perfect any security interest intended to be given by Obligor in connection with any Guaranteed
 Obligation (a "**Security Interest** "); the unenforceability of any Security
 Interest; the subordination of any Security Interest to any other lien or encumbrance; or
 the taking or accepting by Lender of any other security for, or assurance of payment of,
 any Guaranteed Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Other Action or Inaction</u>. Any other action or inaction on the part of Lender, whether or not
 such action or inaction prejudices Guarantor or increases the likelihood that Guarantor will
 be required to pay or perform any Guaranteed Obligation pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Individual Guarantor</u>. If the undersigned Guarantor is an individual, this Guaranty shall not be
 discharged or affected by the death or incompetency of such individual Guarantor, but shall
 bind such individual Guarantor's heirs, executors, administrators, and assigns.

Guarantor shall discharge the Guaranteed Obligations when due, including any accelerated maturity, notwithstanding any occurrence, circumstance, event, action or omission whatsoever, whether or not particularly described herein. Guarantor shall be and remain liable for any deficiency remaining after any foreclosure of any pledge or Security Interest against the Collateral regardless of any action or inaction by Lender in such foreclosure and regardless of any discharge of Obligor. Guarantor is not entering into this Guaranty in reliance on the value or the availability of any of the Collateral. Guarantor acknowledges that Guarantor may be required to pay the Guaranteed Obligations, in full, without the assistance or support of any other party. Guarantor has not been induced to enter into this Guaranty on the basis that any party other than Obligor will be liable to perform any Guaranteed Obligation or that Lender will look to any other party to perform any Guaranteed Obligation.

4. <u>Waivers</u>. Guarantor waives:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Action Against Others</u>. Any right to require Lender to: institute suit or exhaust remedies against
 Obligor or any other party liable for any Guaranteed Obligation; enforce Lender's rights
 in the Collateral or other security which is at any time given to secure any Guaranteed Obligation;
 enforce Lender's rights against any other Guarantor of any Guaranteed Obligation; join
 Obligor or any other party liable for any Guaranteed Obligation in any action seeking to
 enforce this Guaranty; or exhaust any other remedies available to Lender or resort to any
 other means of obtaining payment or performance of any Guaranteed Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notices</u>.
 Notice of the amount of credit extended by Lender to Obligor at any time, whether primary
 or secondary; notice of the renewal, modification, extension, acceleration or other change
 of any Guaranteed Obligation or the terms thereof or any document or instrument relating
 thereto; notice of a default or other non-performance by Obligor in connection with any Guaranteed
 Obligation; notice of the transfer or disposition by Lender of any Guaranteed Obligation;
 notice of the repossession, sale or other disposition of any of the Collateral; notice of
 the acceptance of this Guaranty by Lender; demand and presentation for payment upon Obligor
 or any other party liable for any Guaranteed Obligation; protest, notice of protest and diligence
 of bringing suit against Obligor or any other party; and any other action or inaction on
 the part of Lender in connection with this Guaranty or any Guaranteed Obligation

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subrogation</u>.
 Any right which Guarantor may at any time have against Obligor, or any other party liable
 for any Guaranteed Obligation, as the result of the performance by Guarantor of its obligations
 under this Guaranty, including, but not limited to, contractual, statutory and common law
 rights of subrogation, contribution, reimbursement, recourse and indemnification.

5. <u>Subordination</u>. Any and all indebtedness of Obligor now or hereafter owed to Guarantor or any affiliate of Guarantor is hereby subordinated to the Guaranteed Obligations. This subordination includes, but is not limited to, payment and any lien or security interest.

6. <u>Representations and Warranties</u>. Guarantor represents and warrants to Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Benefit</u>.
 Guarantor has received, or will receive, direct or indirect benefit from the creation of
 the Guaranteed Obligations. The financial accommodations provided to Obligor are for the
 benefit of Guarantor. The granting of this Guaranty will not result in the undersigned's
 liabilities (including the maximum amount of liabilities that may be reasonably expected
 to result from all contingent liabilities and giving effect to rights of contribution and
 subrogation) exceeding the fair market value of its assets, and the performance of the obligations
 of the undersigned hereunder will not cause the undersigned to exceed its ability to pay
 its debts as they mature, and this Guaranty is made without any intent to hinder, delay or
 defraud either present or future creditors, purchasers or other interested persons.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Representation or Warranty by Lender</u>. Neither Lender nor any other Lender party has made
 any representation or warranty to Guarantor in order to induce Guarantor to execute this
 Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Financial and Other Information</u>. Guarantor will deliver promptly to Lender such information regarding
 Guarantor, including but not limited to Guarantor's contact information and financial
 condition, which Lender may reasonably request from time to time. Lender may provide to any
 third party any credit, financial or other information of and/or relating to Guarantor that
 Lender may at any time possess, and Lender is authorized to obtain from any manufacturer,
 distributor or other party any credit, financial or other information of and/or relating
 to Guarantor, Guarantor's principals, and others relating to Guarantor, whether currently
 or hereafter in the possession of any such parties. Guarantor authorizes Lender to obtain
 and use any credit information from any credit reporting entity pertaining to Guarantor's
 credit history and/or credit worthiness, as well as reviewing the credit for increasing or
 decreasing Obligor's credit limit, taking collection actions and for any other business
 purpose. In addition, if any undersigned Guarantor is an individual, upon Lender's
 request, such individual Guarantor will deliver to Lender copies of such individual Guarantor's
 complete financial statements, reflecting such individual Guarantor's assets, liabilities,
 net worth and income and expenses in reasonable detail, along with copies of such individual
 Guarantor's most recent tax returns and an updated personal financial statement.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Financial Condition</u>. As of the date hereof, and after giving effect to this Guaranty and the contingent
 obligations contained herein, (i) Guarantor is solvent and has assets which, when fairly
 valued, exceed its liabilities; (ii) there has not been any material adverse change in Guarantor's
 financial condition since the first review by Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) as of the date hereof and until the payment and performance in full of all Guaranteed Obligations, there will not be any material adverse change in Guarantor's financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Authority and Binding Effect</u>. If any undersigned Guarantor is not an individual, such Guarantor
 has full authority to execute this Guaranty on behalf of such Guarantor, such Guarantor's
 execution of this Guaranty is valid and binding upon such Guarantor without the requirement
 of any other approval or authorization, and each person signing on behalf of such Guarantor
 entity represents and warrants that he or she has the authority to sign on behalf of such
 Guarantor entity and by so signing to bind such Guarantor entity hereunder. If any undersigned
 Guarantor is an individual, such individual Guarantor represents and warrants this Guaranty
 is being executed by such individual Guarantor as an individual in his or her own capacity
 and not as a director, officer, employee, or representative for any corporation, limited
 liability company, partnership or any other entity.

**7.** **JURY TRIAL WAIVER; CONSENT TO JURISDICTION; PUNITIVE DAMAGE WAIVER.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) ANY
 LEGAL PROCEEDING WITH RESPECT TO ANY DISPUTE HEREUNDER WILL BE TRIED IN A COURT OF COMPETENT
 JURISDICTION BY A JUDGE WITHOUT A JURY. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,
 GUARANTOR AND LENDER IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUCH PROCEEDING.
 GUARANTOR HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT
 LOCATED WITHIN THE STATE OF GEORGIA, INCLUDING WITHOUT LIMITATION ANY STATE COURT LOCATED
 IN FULTON COUNTY AND ANY FEDERAL COURT LOCATED IN THE NORTHERN DISTRICT OF GEORGIA, AND GUARANTOR
 HEREBY WAIVES ANY OBJECTION THAT IT MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS
 TO THE CONDUCT OF ANY ACTION OR PROCEEDING IN ANY SUCH COURT. LENDER AND GUARANTOR HEREBY
 WAIVE ANY RIGHT TO PUNITIVE DAMAGES OF ANY KIND AGAINST ONE ANOTHER IN ANY PROCEEDING OR
 AWARD RELATING TO THIS GUARANTY.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Prejudgment and Provisional Remedies</u>. Nothing herein will be construed to prevent Lender's
 or Guarantor's use of bankruptcy, receivership, injunction, repossession, replevin,
 claim and delivery, sequestration, seizure, attachment, foreclosure, and/or any other prejudgment
 or provisional action or remedy relating to any Collateral or for any current or future debt
 owed by either party to the other before a court of competent jurisdiction, and Lender is
 expressly entitled, notwithstanding <u>Section 7(a)</u> hereof, to avail itself of the jurisdiction
 of any court of competent jurisdiction over the Collateral, including, but not limited to,
 any court where any portion of the Collateral may be physically located.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Costs of Collection and Attorneys' Fees</u>. Upon the occurrence of any Default (as defined
 in the Credit Agreement), Lender shall be entitled to collect from Guarantor all expenses
 of pursuing its rights and remedies under the Credit Agreement, this Guaranty, and any other
 documents relating thereto or hereto, including, but not limited to, all attorneys'
 fees and other legal expenses incurred by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Survival After Termination</u>. The provisions of this <u>Section 7</u> will survive the termination
 of this Guaranty. All rights, remedies, privileges and indemnities set forth in this Guaranty
 and the Credit Agreement in favor of Lender and each Lender Indemnitee (as defined in the
 Credit Agreement) are expressly made for the benefit of and shall be enforceable by each
 of them and their respective successors and assigns, and shall survive any expiration or
 termination of this Guaranty and/or the Credit Agreement.

8. <u>Red Oak as Agent</u>. Except upon notice by Red Oak providing alternate instructions on a particular occasion or generally, Red Oak acts as agent for each Lender, and Guarantor agrees to deal exclusively with Red Oak for all purposes in connection with this Guaranty notwithstanding any other terms set forth in this Guaranty. By way of example and not in limitation, except upon notice by Red Oak providing alternate instructions on a particular occasion or generally, as to all provisions requiring or allowing Guarantor to provide information and/or any notice to Lender, and for Guarantor to make payments to Lender, all such information and/or notice shall be provided, and all such payments shall be remitted, exclusively to Red Oak at such address and in such manner as Red Oak may instruct from time to time. Likewise, except as determined by Red Oak on a particular occasion or generally, Red Oak shall have exclusive authority to act as Lender with respect to Guarantor in connection with this Guaranty, including but not limited to for purposes of issuing default or other notices to Guarantor, considering and/or granting any requests for amendment and/or waivers and exercising remedies after any Default with respect to Guarantor or otherwise in connection with the Guaranteed Obligations. Guarantor understands and agrees that (a) Red Oak, each Lender and the manufacturer of any item of Collateral are not affiliated and neither Red Oak nor any Lender shall have any liability to Guarantor or otherwise for the actions or omissions of such manufacturer(s) or other third parties; and (b) Red Oak and each Lender may share and exchange with the any manufacturer(s) of Collateral and any other third party as Red Oak or such Lender determines appropriate any credit, financial and other information as further set forth in <u>Section 6(c)</u> above.

9. <u>Governing Law</u>. This Guaranty has been substantially negotiated in the State of Georgia. This Guaranty shall be governed, construed and enforced in accordance with the laws of the State of Georgia without regard to conflicts of laws principles that might refer the governance, construction or enforcement of this Guaranty to the laws of another jurisdiction. For the avoidance of doubt, the parties agree that the laws of the State of Georgia shall govern the resolution of any Dispute.

10. <u>Miscellaneous</u>. If any provision of this Guaranty, the Credit Agreement and any other documents relating hereto or thereto shall be prohibited or invalid under applicable law, such provision shall be ineffective but only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Guaranty, the Credit Agreement and any other documents relating hereto or thereto. The headings contained in this Guaranty are inserted for convenience only and shall not affect the meaning or interpretation of this Guaranty. All references herein to Guarantor, any person, document or other nouns of reference mean both the singular and plural form, as the case may be, and the term "person" shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, any government or any political subdivision thereof, or other entity, and the term "entity" shall mean any such "person" other than an individual. All references to the parties herein shall also include any person which directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with such party (each an "**affiliate**"). Any waiver of a breach of this Guaranty shall not be construed to be a continuing waiver or consent to any subsequent breach by either party hereto. This Guaranty shall not be deemed to create any right in any party except as provided herein. This Guaranty shall inure to the benefit of Lender, together with the successors and assigns of Lender and shall be binding upon Guarantor and the successors and assigns of Guarantor. Guarantor agrees that Lender may, without the consent of, or notice to, Guarantor, assign all or any portion of its rights hereunder to any other party to which any Guaranteed Obligation is transferred, assigned or negotiated. Guarantor shall not assign its rights or delegate its obligations under this Guaranty, in whole or in part, without the prior written consent of Lender. Guarantor shall be liable for all attorneys' fees and other costs and expenses incurred by Lender in connection with Lender's collection of the Guaranteed Obligations, and enforcement of this Guaranty. Any notices, demands or other communications hereunder shall be in writing, and shall be deemed to have been given and be effective upon the earlier of (i) delivery by personal delivery, (ii) one (1) business day after being sent by overnight courier, (iii) three (3) days after the mailing thereof by registered or certified mail, postage prepaid, return receipt requested, (iv) the date of posting by Lender on the website (as mentioned in the Credit Agreement), or (v) upon affirmative confirmation of receipt by email, if sent during normal business hours, or on the next business day if sent after normal business hours, in each case addressed to addresses set forth below for each party or such other address as any party shall have designated by notice in writing to the other parties. This Guaranty may be executed and delivered by original signature or facsimile, and in one or more counterparts, each of which shall be deemed to be an original copy of this Guaranty and all of which, when taken together, shall be deemed to constitute one and the same Guaranty. The parties (or either of them) may sign this Guaranty manually or by Electronic Signature (as defined below). A party's delivery of a counterpart of this Guaranty containing or otherwise bearing or having associated therewith an Electronic Signature (i) shall be deemed to be conclusive proof of such party's intent and agreement to authenticate this writing and to form and to be bound by this Guaranty, and (ii) shall have the same force and effect as delivery of a counterpart bearing an original manual signature. "**Electronic Signature**" means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record (including, without limitation, facsimile, email electronic signatures, or manual signatures scanned and transmitted by e-mail as a PDF). The words "execute," "execution," "executed," "sign," "signed," "signature," "initials" and words of similar import in this Guaranty shall include Electronic Signatures. This Guaranty, the Credit Agreement and any other documents relating hereto or thereto contain the entire agreement of the parties hereto with respect to the subject matter hereof, collectively set forth the entire understanding of the parties with respect to the subject matter hereof, and collectively supersede any other agreements or understandings, oral or written, between the parties with respect to the subject matter hereof. This Guaranty may not be amended, modified or supplemented in any respect, except by a subsequent written agreement executed by the parties hereto. This Guaranty may not be varied or modified by statement, conduct or act of any of the parties, except by a writing specifically referring to this Guaranty and signed by all parties hereto. No course of dealing, course of performance, or usage of trade shall be considered in the interpretation or enforcement of this Guaranty. Guarantor waives any right it may have to introduce evidence of any such course of dealing, course of performance or usage of trade. This Guaranty is not to be construed in any way against or in favor of any party hereto solely because one party drafted this Guaranty.

11. <u>Multiple Guarantors</u>. If more than one Guarantor executes this Guaranty, each Guarantor hereby agrees to be jointly and severally responsible for fulfilling all Guaranteed Obligations hereunder. All affirmative representations, covenants, agreements and obligations imposed on "Guarantor" hereunder shall constitute representations, covenants, agreements and obligations binding on all Guarantors. All representations, covenants, agreements and obligations shall also constitute representations, covenants agreements and obligations of all Guarantors but shall be breached hereunder if breached by any Guarantor. Insofar as Lender is concerned, the act of any Guarantor shall bind all other Guarantors, and Lender's rights, remedies, powers privileges and indemnities (and each Guarantor's rights and duties to Lender) shall not be affected by any notice or action to the contrary. Lender shall be fully protected, as to each and all Guarantor, in dealing with any one Guarantor. A Guarantor's obligations hereunder shall not be affected by any action taken or not taken by Lender, by any lack of prior enforcement or retention of any rights against any Guarantor, by any illegality, unenforceability, or invalidity of any Guarantor's obligations, or by any circumstance or condition, including, without limitation, (i) any termination, amendment, or modification of, or supplement hereto; (ii) any action by any Guarantor with respect to any item of Collateral; (iii) any failure or delay to conform or comply with any term hereof; (iv) any waiver, consent, extension, indulgence, compromise, settlement, release, or other action or inaction under or in respect hereof, or any exercise or non- exercise of any right, remedy, power, privilege or indemnity under or in respect hereof; (v) any voluntary or involuntary bankruptcy, insolvency, or similar proceeding with respect to any Guarantor; (vi) any limitation on the liability or obligations of any Guarantor, or any discharge, termination, cancellation, frustration, invalidity or unenforceability hereof;

(vii) any defect in title to or condition of any item of the Collateral; (viii) any merger or consolidation of any Guarantor into or with any other entity; and (ix) any other condition or circumstance which might otherwise constitute a legal or equitable discharge, release, defense, or limitation arising out of any laws of the United States of America or any state thereof or any other applicable jurisdiction. Each Guarantor agrees that Lender shall not be required to file suit or proceed to obtain or assert a claim against any other Guarantor or its assets, either before or as a condition to enforcing such first Guarantor's liability hereunder. Lender shall have no duty to see any allocation of use or benefits of any item of Collateral subject hereto, regardless of any notice or request from any Guarantor, all relations between or among Guarantors being an internal matter for such Guarantor and not for Lender. To the extent that this Guaranty is secured by property of any Guarantor or any other party, Lender shall not be obligated to release its security interest in such property until all applicable preference periods have passed with respect to payments made to Lender by or on behalf of Guarantor and/or Obligor.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned Guarantor has executed this Guaranty, intending to be legally bound hereby, as of the Effective Date set forth above.

---

| | |
|:---|:---|
| **GUARANTOR:** | **GUARANTOR:** |
| By: | */s/ Jason Ruegg* |
| Name: | Jason Ruegg |
| Address: |  |
| Email: |  |

---

---

| |
|:---|
| **Address for Notices to Lender:** |
| Red Oak Inventory Finance, LLC |
| PO Box 326 |
| Alpharetta, GA 30009 |

---

## Exhibit 10.11

**Exhibit 10.11**

**MASTER SERVICES AGREEMENT**

This **Master Services Agreement** (the "**Agreement**" or "**MSA**") is effective as of February 25, 2025 ("**Effective Date**") by and between **NexGenAI Solutions Group, Inc**., (the **"Company**" or **"Solutions"**) (for purposes of this Agreement and any related Project Agreement, "Company" includes any and all of the Company's relevant affiliates), a private Delaware corporation, with its principal place of business at 1858 Pleasantville Road, Suite 110, Briarcliff Manor, NY 10510 and **Off The Hook YS Inc.,** (the **"Client" or "OTH"**) (for purposes of this Agreement and any related Project Agreement, "Client" includes any and all of the Client's relevant OTH affiliates) a private Nevada corporation, with its principal place of business at 1061 E Indiantown Road, Suite 110, Jupiter, FL 33477**.** The Company and Client may be referred to collectively as the "**Parties**" or singularly as a "**Party**" to this Agreement.

**RECITALS**

WHEREAS, Client desires to purchase services from the Company (the "**Services**") in accordance with the terms and conditions set forth in this Agreement and in the Project Agreement(s) ("**PA**") executed for each project. Company will provide the Services solely to the extent specified in a PA.

NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to the terms below.

**1.** **Term and Termination** 

This Agreement shall be in full force and effect commencing as of the Effective Date and shall have an initial term of twelve (12) months (the "**Term**"). The Parties may elect to renew this Agreement for additional twelve month terms upon mutual written agreement. This Agreement will automatically renew for additional twelve-month terms, subject to Fee adjustment. Either party may terminate this Agreement in the last sixty (60) days of a Term with prior written notice to the other party. In addition, either party may suspend its performance under or terminate this Agreement immediately upon written notice at any time if: (i) the other party is in material breach of any warranty, term, condition or covenant of this Agreement and where such breach is remediable, fails to cure such breach within thirty (30) days after receipt of written notice of such breach; or (ii) the other party shall be adjudicated bankrupt or shall petition for or consent to any relief under any bankruptcy, reorganization, receivership, liquidation, compromise, or any moratorium statute, whether now or hereafter in effect, or shall make an assignment for the benefit of its creditors, or shall petition for the appointment of a receiver, liquidator, trustee or custodian for all or a substantial part of its assets, or if a receiver, liquidator, trustee or custodian is appointed for all or a substantial part of its assets and is not discharged within thirty (30) days after the date of such appointment. Additionally,

**2.** **Data Records** 

The Company may use its sector-specific data ("**Data**") for a specific purpose as set forth on a Project Agreement. The Company retains all original rights to such Data. The Client cannot assign, transfer, share, or in any other manner allow a third party to use the Data. The Company will have the right to communicate with any contacts or data elements that are used during or after the Term of this Agreement.

Company initials Client initials <br> -230310 new MSA template Master Services Agreement RFI

**3.** **Services** 

Company shall provide to the Client the Services for the specific price set forth in a Project Agreement. After an initial review and assessment of the Client's business, the Company shall suggest a plan based on the Client's needs. The Project specifications will be set forth in a fully executed PA. Client acknowledges that the amount of Services provided will be commensurate with the Fee charged.

**4.** **Fees** 

Client agrees to pay Company or its assigns the fees as described in each Project Agreement (the "**Fees**"), which shall be incorporated as part of this Agreement, for the Company's provision of the Services. Unless otherwise stated in the applicable PA, payment is due by Client, in advance, upon execution of each PA. All Company's fees and charges are exclusive of all applicable taxes. Each Party will be responsible for its own income, employment, and property taxes. Client agrees and acknowledges that the Fee set out in a PA, once paid, is non-refundable (even in the event of termination or any other reason) and non-creditable against other fees payable in connection with another PA.

5. Independent Contractor

Any Services rendered by the Company shall be rendered as an independent contractor. Nothing contained herein shall be considered as creating an employer-employee relationship between the Parties to this Agreement. Client shall not make or owe any social security, worker's compensation or unemployment insurance payments on behalf of the Company.

**6.** **Time, Place & Manner of Performance** 

Company shall be available for advice and counsel to the officers and directors of Client on matters related to the Services provided such reasonable and convenient times and places may be mutually agreed upon. Unless otherwise stated herein, the time, place and manner of performance of any Services described herein, including the amount of time to be allocated by Company to any specific service, shall be determined at the sole discretion of Company.

**7.** **No Guarantee** 

The Parties hereto acknowledge and agree that the Company cannot guarantee any specific results from the Data and/or the provision of the Services. Company shall perform the Services in a professional manner and in accordance with good industry practice.

**8.** **Assignment** 

Neither this Agreement nor any of the Project Agreements nor any of the rights, interests or obligations hereunder may be assigned by either Party hereto (whether by operation of law or otherwise) without the prior written consent of the other Party. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns.

Company initials Client initials <br> -230310 new MSA template Master Services Agreement RFI

**9.** **Amendments** 

Either Party may request mutually agreed changes to this Agreement. Any changes, modifications, revisions or amendments to this Agreement which are mutually agreed upon by and between the Parties to this Agreement shall be incorporated by written instrument, and effective when executed and signed by all Parties to this Agreement.

**10.** **Confidentiality, Non-Solicitation and Non-Circumvent** 

The Parties agree to keep this Agreement confidential and may not disclose either the existence or the terms of the Agreement to third parties without the prior written consent of the other Party. The Client shall not solicit, recruit, or attempt to persuade any person in the Company or one of its related entities to terminate such person's employment, whether or not such person is a full-time employee and whether or not such employment is pursuant to a written agreement or is at-will. The Client shall not use any of the Company's intellectual property, including its Data for any purposes not delineated in a Project Agreement.

**11.** **Mutual Indemnification** 

Because each party must at all times rely upon the accuracy and completeness of the information supplied to it by the other Parties, each Party unconditionally, absolutely and irrevocably agrees to and shall indemnify and hold harmless the other Parties and its past, present and future directors, officers, affiliates, counsel, shareholders, employees, agents, attorneys, representatives, contractors, successors and assigns (Company and such persons are collectively referred to as the "**Indemnified Persons**") from and against any and all losses, claims, costs, expenses, liabilities and damages (or actions in respect thereof) arising out of or related to this Agreement, the delivery of Data pursuant to the Agreement, and any actions taken or omitted to be taken by an Indemnified Party in connection with this Agreement ("**Indemnified Claim**").

Without limiting the generality of the foregoing, such indemnification shall cover losses, claims, costs, expenses, liabilities and damages imposed on or incurred by the Indemnified Persons, directly or indirectly, relating to, resulting from, or arising out of any actual or alleged misstatement of fact or omission of fact, or any actual or alleged inaccuracy in any information provided or approved by a Party in connection with this Agreement, including any actual or alleged misstatement, omission or inaccuracy in any filing with any governmental or regulatory body, press release, website, marketing material or other document, or oral presentation or webcast; or, infraction or violation of any policy, laws, rules or regulations of any country with jurisdiction over either party, including, but not limited to, any rules and regulations around securities filings, and/or any related or required public, investor or marketing disclosures, whether or not the Indemnified Persons relied thereon or had knowledge thereof.

In addition, all Parties agree to reimburse the Indemnified Persons for legal or other expenses reasonably incurred by them in respect of each Indemnified Claim at the time such expenses are incurred. Notwithstanding the foregoing, all Parties shall not be obligated under the foregoing for any loss, claim, liability or damage that is finally determined by a court with proper jurisdiction to have resulted primarily from the willful misconduct or bad faith of the Indemnified Person.

**12.** **Limitation of Liability** 

In no event shall either Party be liable to the other or to any third party for any indirect, incidental, special or consequential damages, or damages for lost profits or loss of business, however caused and under any theory of liability, whether based in contract, tort (including negligence) or other theory of liability, regardless of whether either Party was advised of the possibility of such damages and notwithstanding the failure of essential purpose of any limited remedy.

Company initials Client initials <br> -230310 new MSA template Master Services Agreement RFI

**13.** **Governing Law; Binding Arbitration; Legal Representation** 

This Agreement and the rights of the parties hereunder, shall be governed by and construed in accordance with the laws of the State of New York, including all matters of construction, validity, performance, and enforcement and without giving effect to the principles of conflict of laws. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The arbitration shall be conducted in New York County, New York. Each party represents and agrees that they have been represented by counsel and has had an opportunity to consult legal counsel in connection with the negotiation and execution of this Agreement and understand the obligations, risks, rights and legal and regulatory effects and requirements under this Agreement. No provision of this Agreement shall be construed against or interpreted to the disadvantage of any party by any court or any governmental authority by reason of such party having drafted or deemed to have drafted such provision.

**14.** **Counterparts / Electronic Signature** 

This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Execution and delivery of this Agreement by exchange of electronic copies bearing the electronic signature of a party hereto shall constitute a valid and binding execution and delivery of this Agreement by such party. Such electronic copies shall constitute enforceable original documents.

**15.** **Notices** 

All notices, consents, waivers or other communications given under this Agreement shall be in writing and given by overnight delivery (by a nationally recognized overnight courier service), personal delivery or by registered or certified mail with postage prepaid and return receipt requested, at the respective addresses of the Parties as set forth above or at the most current address as may be supplied by such Party to the other pursuant to this Agreement.

**16.** **Entire Agreement / Severability** 

This Agreement and its schedules and exhibits constitutes and embodies the entire understanding and agreement of the Parties and supersedes and replaces all other or prior understandings, agreements and negotiations between the parties. All agreements and covenants contained herein are severable, and in the event any of them shall be held to be invalid by any competent court, the Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein. Any waiver, alteration, or modification of any of the provisions of this Agreement shall be valid only if made in writing and signed by the parties hereto. Each Party hereto, may waive any of its rights hereunder without affecting a waiver with respect to any subsequent occurrences or transactions hereof. Any waiver by either Party or a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by any Party.

[SIGNATURE PAGE FOLLOWS]

Company initials Client initials <br> -230310 new MSA template Master Services Agreement RFI

IN WITNESS WHEREOF, the Parties hereto have duly executed and delivered this Agreement, effective as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **COMPANY:** | **COMPANY:** | **CLIENT:** | **CLIENT:** |
| **NexGenAI Solutions Group Inc.** | **NexGenAI Solutions Group Inc.** | **Off The Hook YS Inc.** | **Off The Hook YS Inc.** |
| By: | /s/ Michael Woloshin | By: | /s/ Brian John |
| Michael Woloshin, CEO | Michael Woloshin, CEO | Brian John, CEO | Brian John, CEO |
| 1858 Pleasantville Road, Suite 110 | 1858 Pleasantville Road, Suite 110 | 1061 Indiantown Road, Suite 110 | 1061 Indiantown Road, Suite 110 |
| Briarcliff Manor, NY 10510 | Briarcliff Manor, NY 10510 | Jupiter, FL 33477 | Jupiter, FL 33477 |

---

Company initials Client initials <br> -230310 new MSA template Master Services Agreement RFI

**SCHEDULE A**

**PROJECT AGREEMENT LIST**

Company initials Client initials <br> -230310 new MSA template Master Services Agreement RFI

**EXHIBIT A**

**PROJECT AGREEMENTS**

Company initials Client initials <br> -230310 new MSA template Master Services Agreement RFI

## Exhibit 10.12

**Exhibit 10.12**

LOAN AGREEMENT

This Loan Agreement ("Agreement") is made and entered into as of July 22, 2019, by and between:

Lender(s): Diane and Daniel Ruegg

Address:

Borrower: OFF THE HOOK YACHT SALES NC LLC

Address: 1701 Jel Wade Drive, Wilmington, NC 28409

1. Loan Amount

The Lender agrees to loan the Borrower the principal sum of One Million One Hundred Fifty-One Thousand Twenty-Six Dollars ($1,151,026) (the "Loan").

2. Interest Rate and Payments

The Loan shall bear interest at a fixed annual rate of 8.0%, calculated on a 365-day year. Interest shall be paid monthly, in arrears, on the first day of each month, beginning August 1, 2019.

Monthly interest payment: $7,673.51 (Calculated as $1,151,026 × 0.08 ÷ 12)

3. Term and Repayment of Principal

The term of the Loan is twenty-four (84) months, with a maturity date of August 1, 2026. This is an interest-only loan, and the Borrower shall:

- Make monthly interest payments of $7,673.51; and

- Pay the full outstanding principal balance of $1,151,026 in one lump sum on or before the maturity date.

4. Prepayment

Borrower may prepay all or any portion of the Loan at any time without premium or penalty. Prepayments shall first be applied to any unpaid interest, then to principal.

5. Use of Funds

The Borrower agrees to use the Loan proceeds for lawful business purposes, including but not limited to general working capital.

6. Default and Remedies

If the Borrower fails to make any scheduled payment within 10 days of its due date, or otherwise materially breaches this Agreement, the Lender may declare the full amount of principal and accrued interest immediately due and payable. Upon default, interest shall continue to accrue at the rate set forth in this Agreement until repayment is made in full.

7. Governing Law

This Agreement shall be governed by and interpreted under the laws of the State of North Carolina, without regard to its conflict of law principles.

8. Entire Agreement

This Agreement constitutes the entire understanding between the parties and supersedes all prior or contemporaneous communications, whether oral or written.

9. Amendments

This Agreement may only be amended in writing, signed by both parties.

10. Signatures

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

LENDER:

---

| | |
|:---|:---|
| Name: | Diane Ruegg |
| Signature: | |
| Date: | |

---

---

| | |
|:---|:---|
| LENDER: | LENDER: |
| Name: | Daniel Ruegg |
| Signature: | |
| Date: | |

---

BORROWER:

OFF THE HOOK YACHT SALES NC LLC

---

| | |
|:---|:---|
| By: | Jason Ruegg |
| Title: | President |
| Signature: |  |
| Date: |  |

---

## Exhibit 10.13

**Exhibit 10.13**

LOAN AGREEMENT

This Loan Agreement ("Agreement") is made and entered into as of February 23, 2023, by and between:

Lender(s): Tom Ruegg

Address:

Borrower: OFF THE HOOK YACHT SALES NC LLC

Address: 1701 Jel Wade Drive, Wilmington, NC 28409

1. Loan Amount

The Lender agrees to loan the Borrower the principal sum of Five Hundred Thousand Dollars ($500,000) (the "Loan").

2. Interest Rate and Payments

The Loan shall bear interest at a fixed annual rate of 7.0%, calculated on a 365-day year. Interest shall be paid monthly, in arrears, on the first day of each month, beginning March 1, 2023.

Monthly interest payment: $2,916.67 (Calculated as $500,000 × 0.07 ÷ 12)

3. Term and Repayment of Principal

The term of the Loan is twenty-four (48) months, with a maturity date of February 23, 2027. This is an interest-only loan, and the Borrower shall:

- Make monthly interest payments of $2,916.67; and

- Pay the full outstanding principal balance of $500,000 in one lump sum on or before the maturity date.

4. Prepayment

The Borrower may prepay all or any portion of the Loan at any time without premium or penalty. Prepayments shall first be applied to any unpaid interest, then to principal.

5. Use of Funds

The Borrower agrees to use the Loan proceeds for lawful business purposes, including but not limited to general working capital.

6. Default and Remedies

If the Borrower fails to make any scheduled payment within 10 days of its due date, or otherwise materially breaches this Agreement, the Lender may declare the full amount of principal and accrued interest immediately due and payable. Upon default, interest shall continue to accrue at the rate set forth in this Agreement until repayment is made in full.

7. Governing Law

This Agreement shall be governed by and interpreted under the laws of the State of North Carolina, without regard to its conflict of law principles.

8. Entire Agreement

This Agreement constitutes the entire understanding between the parties and supersedes all prior or contemporaneous communications, whether oral or written.

9. Amendments

This Agreement may only be amended in writing, signed by both parties.

10. Signatures

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

LENDER:

---

| | |
|:---|:---|
| Name: | Tom Ruegg |
| Signature: | |
| Date: | |

---

BORROWER:

OFF THE HOOK YACHT SALES NC LLC

---

| | |
|:---|:---|
| By: | Jason Ruegg |
| Title: | President |
| Signature: |  |
| Date: |  |

---

## Exhibit 10.14

**Exhibit 10.14** 

**AUTHORIZED DEALER**

**AGREEMENT**

THIS AUTHORIZED DEALER AGREEMENT ("<u>Agreement</u>") is entered into as of the **5** day of **May** (the "<u>Effective Date</u>") between **Yellowfin Yachts LLC**, a Delaware limited liability company (hereinafter called "<u>Manufacturer</u>") and

Firm Name: Off the Hook Yacht Sales NC, LLC

Doing business as: OTH Simon Marine YF, LLC

Address: 1701 J e l W a de D r .

City: W il mi n g to n

State: N C Zip: 284 0 1

Entity type: L LC

State of formation/organization/incorporation: Florida

(hereinafter referred to as "<u>Dealer</u>", and together with Manufacturer, the "<u>Parties</u>", and each, a "Party").

In consideration of the mutual covenants hereinafter set forth, Manufacturer and Dealer agree:

<u>Section 1</u>. <u>Appointment, Authority and Capacity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 During the Term (defined below) and subject to the Terms and Conditions attached as Addendum A hereof, Manufacturer hereby grants to Dealer and Dealer hereby accepts from Manufacturer the exclusive right to promote and sell Manufacturer's newly manufactured boats, parts, accessories, and promotional items (the "<u>Products</u>"), as described from time to time in Manufacturer's product catalog and inventory pricing sheets ("<u>Product Catalog</u>") in the Market Area described on <u>Addendum B</u> attached hereto and made a part hereof (the "<u>Market Area</u>"). Dealer covenants and agrees to purchase the Products for its own account exclusively and to market and sell such Products only in the Market Area. Dealer acknowledges and agrees that the rights granted pursuant to this Agreement are limited to the Market Area and confer no rights upon Dealer with respect to the distribution of the Products outside the Market Area. Without limiting the foregoing, Dealer shall not, directly or indirectly, including through any agents, distribute or sell the Products outside the Market Area and shall not solicit orders for the Products, advertise the Products (except for the display and sale of the Products online on the Website) or keep any stock of the Products outside the Market Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Notwithstanding the appointment in Section 1.1, Dealer shall remain an independent contractor and shall not be deemed an agent of Manufacturer and is not authorized to waive any right or to incur, assume or create any debt, obligation, contract or release of any kind in the name of or on behalf of Manufacturer. Nothing in this Agreement shall be construed to create an employer-employee, agency, partnership, or joint venture relationship between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Notwithstanding the appointment in Section 1.1, Manufacturer reserves the right, in its sole discretion to: (i) directly sell, market and promote the Products to any person worldwide, including in the Market Area; and (ii) grant any person the right to sell, market and promote the Products outside the Market Area. Manufacturer would discuss any potential sale into market area prior to sale taking place and only proceed if a mutually agreed upon revenue sharing agreement of the sale is made with the dealer, confirmed in writing.

<u>Section 2</u>. <u>Points of Sale and Website</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Dealer may only sell Products (i) from the locations of sale set forth on <u>Addendum B</u>, or such other locations authorized by Manufacturer in writing (the "<u>Points of Sale</u>"); and (ii) online from the website(s) set forth on <u>Addendum B</u> ("<u>Website</u>") for delivery to locations in the Market Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Dealer warrants that, at all times during the Term of this Agreement, each of (i) the Points of Sale in relation to its location, facilities, exterior and interior arrangements, decor and structural and decorative conditions, and (ii) the Website, will maintain a standard of quality and image of no lesser quality than that of the Trademarks and the Products, determined reasonably, and shall display signage reflecting Manufacturer's Trademarks.

<u>Section 3</u>. <u>Exclusive Supply</u>; No Resale. Dealer will acquire the Products exclusively from Manufacturer. Dealer is not authorized to buy new Products from any Person other than Manufacturer, or another one of manufacturer's authorized dealers, nor is it authorized to manufacture products, including apparel, bearing the Trademarks. The sale of the Products by Dealer to any Person, other than one of manufacturer's authorized dealers, whose intention is to resell any Product is prohibited.

<u>Section 4</u>. <u>No Modification to Products</u>. Dealer may not alter, mask or obliterate any of the Trademarks on any of the Products or alter or obliterate any serial number or other means of identification of the Products or modify Manufacturer packaging of any Product. Dealer will not present for sale or sell any products at any Point of Sale or on the Website which are counterfeits, copies or unauthorized reproductions of any of the Products or of any other brand or any products likely to create any risk of confusion in the mind of a customer.

<u>Section 5</u>. <u>Dealer's Actions; Promotion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Throughout the Term of this Agreement, Dealer will, at its own costs, use its best efforts to maintain and promote the reputation of the Products and the Trademarks, and to promote, market and develop the sales of the Products in accordance with the terms of this Agreement, and any policies and procedures issued by Manufacturer from time to time. Dealer agrees to maintain a staff of personnel who are properly trained to sell and service the Products. Dealer agrees to render prompt and courteous service with respect to the Products including initial outfitting, commissioning and delivery of the Products sold by Dealer as well as post sale service of all the Products brought to Dealer for service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Dealer shall use commercially reasonable efforts to participate in area and regional boat shows and other promotional events recognized within the marine industry as being appropriate for the promotion of motor powered boats of the same class and type as the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Dealer shall be required to complete the promotional activities set forth on <u>Addendum B</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Dealer shall not advertise, market, promote or otherwise attempt to sell any Products for a price less than Manufacturer's Standard Retail Price ("<u>MSRP</u>") as set forth in Manufacturer's Product Catalog with respect to pricing at the time of dealer purchase. Notwithstanding the foregoing, Dealer shall not disseminate in any advertising, marketing, promotional materials or other similar communications on its website, the internet or any other electronic medium, including social media, the MSRP, actual sales price or other suggested price, of any Products unless Dealer obtains Manufacturer's prior written consent approving such advertising, marketing, promotional materials or other similar communications. For an avoidance of doubt, Dealer may advertise, market and promote the Products on its website, the internet and other electronic mediums, including social media; however, such materials shall not include any pricing, including without limitation, the MSRP, actual sales price or other suggested price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 Dealer and Manufacturer shall discuss Dealer's marketing efforts on a quarterly basis. Dealer shall use good faith commercially reasonable efforts to incorporate Manufacturer's suggestions regarding Dealer's marketing efforts.

<u>Section 6</u>. <u>Inventory</u>. Dealer will maintain at all times a sufficient and representative inventory of the Products for its customers' requirements. Dealer shall maintain at all times a level of Product inventory as set forth on <u>Addendum B</u> (the "<u>Minimum Product Inventory Level Requirement</u>").

<u>Section 7</u>. <u>Sales Requirements; Inventory</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Dealer is required to meet the sales goals set forth on <u>Addendum B</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 With respect to any and all Products sold by Dealer in each Point of Sale, Dealer shall provide to Manufacturer written reports (each, a "<u>Dealer Report</u>") setting forth a summary of any and all information reasonably requested by Manufacturer, including without limitation sales by product, unit and value to customers in the previous month, quarter and year, as the case may be, by product, as well as a summary of inventory on hand. In addition to the Dealer Reports discussed above, Manufacturer may, from time to time, request a non-periodic report ("<u>Non-Periodic Reports</u>"). Unless otherwise specified by Manufacturer, Non-Periodic Reports shall include all of the information included in a Dealer Report. Unless otherwise specified by Manufacturer, Dealer shall deliver Non-Periodic Reports to Manufacturer within five (5) days from Manufacturer's written request for such Non- Periodic Report.

<u>Section 8</u>. <u>Orders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Dealer shall submit all orders for Products to Manufacturer in a manner acceptable to Manufacturer in its absolute discretion (each, an "<u>Order</u>"). Each Order is subject to Manufacturer's written acceptance and Manufacturer may reject, in its absolute discretion, any Order or portion thereof either upon providing written notice of rejection or withholding written acceptance of such Order. In addition, failure to submit an Order in a manner acceptable to Manufacturer may result in such Order being deemed void and rejected. Except as set forth in Section 9.2, Dealer shall not be required to pay a deposit for any Order until Dealer receives written acceptance of such Order from Manufacturer. Orders shall only be deemed valid and accepted upon written acceptance by Manufacturer (each, an "<u>Accepted Order</u>"). Dealer shall be required to pay the required deposit, as set forth on <u>Addendum A</u>, for all Accepted Orders within five (5) days of the Manufacturer's acceptance (the "<u>Deposit</u>"). If Dealer fails to pay the Deposit for an Accepted Order within five (5) days, then Manufacturer shall have the right to rescind its acceptance of that Accepted Order. Dealers are permitted to make changes to any Order prior to written acceptance from the Manufacturer, but are only permitted to make changes to Accepted Orders with respect to accessories and customization of a boat pursuant to the Group Options set forth in Section 8 of Addendum A (each, a "<u>Change Order</u>"). All Change Orders must be submitted in writing by Dealer and approved in writing which may be by email by Manufacturer, otherwise Change Orders will be deemed rejected and void (each, an "<u>Accepted Change Order</u>"). Accepted Change Orders will receive standard discounting, as applicable. In addition, the Group Options set forth in Section 8 of Addendum A are subject to change at any time by the Manufacturer in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Dealer may forecast its projected Orders for stock (but not Orders for custom Products for a customer) (each, a "<u>Forecast Order</u>") and reserve a production slot for up to the number of Products set forth on <u>Addendum B</u> by submitting a Forecast Order contemporaneously with the appropriate payment as set forth on <u>Addendum A</u>. Dealer shall not change or otherwise modify Forecast Orders after such Forecast Orders have been submitted to Manufacturer. Each Forecast Order is subject to Manufacturer's written acceptance and Manufacturer may reject, in its absolute discretion, any Forecast Order or portion thereof either upon providing written notice of rejection or withholding written acceptance of such Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 To the extent that an Order, Forecast Order, Change Order, Accepted Order or other purchasing document (if applicable) contain terms and conditions that are inconsistent with this Agreement, the terms and conditions of this Agreement shall prevail. Dealer shall not cancel or refuse delivery of Products from any Accepted Order.

<u>Section 9</u>. <u>Prices; Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Manufacturer will endeavor, on an annual basis, to publish or otherwise furnish to Dealer a list of the MSRP and dealer price ("<u>Dealer Price</u>") for all Products. All MSRPs and Dealer Prices will be subject to modification, including increases and decreases, at any time in the Manufacturer's sole discretion. Dealer may purchase the Products at the Dealer Price, less applicable discounts, in effect from time to time during the Term. Unless agreed to in writing by the Manufacturer, Accepted Orders shall not be subject to change as a result of the Manufacturer's modification of either the respective MSRP or Dealer Price for any Products contained in such Accepted Order. Manufacturer shall have no obligation to reimburse Dealer for any loss, actual or anticipated, sustained as a result of any change to the MSRP or Dealer Price for any Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Manufacturer may, from time to time, offer a "floor plan" payment option for certain of its Products ("<u>Floor Plan Option</u>"). For any Product that Dealer wishes to purchase pursuant to the Floor Plan Option, Dealer must note such request in the respective Order for such Products. Unless otherwise approved in writing by Manufacturer, the standard payment method set forth in <u>Addendum A</u> will apply to such Order. Upon completion and delivery of any Product purchased pursuant to the Floor Plan Option, Dealer will be entitled to a refund of the Floor Plan Deposit for such Product upon full payment of the Product. Dealer will have the option to request from Manufacturer one hundred percent (100%) Floor Plan Option boats; however, Manufacturer can deny such request in its sole and absolute discretion. In no event shall the Floor Plan Option apply to boats previously ordered by Dealer or boats already under construction by Manufacturer.

<u>Section 10</u>. <u>Pickup; Title; Risk of Loss</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 All Orders shall be F.O.B. Manufacturer's factories located at 6510 19th Street East, Sarasota, Florida 34243 ("<u>Manufacturer's Factory</u>") and are subject to the Terms and Conditions attached as Addendum A. Dealer shall be responsible for all applicable pickup, delivery, handling charges and any other costs and expenses relating to transporting and unloading, insurance and any other similar financial contributions or obligations relating to the pickup and transport of the Products. In addition, any manufacturer's tax, occupation tax, use tax, sales tax, excise tax, value added tax, duty, custom, inspection or testing fee, or any other tax, fee, interest or charge of any nature whatsoever imposed by any governmental or similar authority on or measured by the transactions between the Parties will be paid by Dealer in addition to the prices invoiced in any Order. In the event Manufacturer is required to pay any such taxes or other charges, Dealer will promptly reimburse Manufacturer on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 If Dealer intends to supply a trailer for pickup of any boat model, Dealer shall deliver a transport grade trailer (subject to Manufacturer's approval) to Manufacturer's Factory no less than ten business days prior to the Pickup Date to permit Manufacturer to inspect the trailer for fitment. Title and risk of loss shall pass to Dealer for such Products when Dealer commences the pickup process at Manufacturer's Factory or other designated location in Manufacturer's sole discretion. For an avoidance of doubt, Dealer shall be solely responsible for any damage, loss or injury caused by Dealer in connection with its pickup efforts at Manufacturer's Factory or other designated location in Manufacturer's sole discretion other than as a primary result of manufacturer's gross negligence or willful misconduct.

<u>Section 11</u>. <u>Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Dealer shall inform its customers of the details of the various warranties, as communicated by Manufacturer from time to time, and will act upon Manufacturer's instructions with respect to the provision or honoring of any applicable warranty. Dealer shall not make any representation or give any warranty or guarantee to any customer, other than those expressly approved in writing by Manufacturer in respect of the Products. Manufacturer undertakes to comply at all times with the applicable warranties of the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 The warranties communicated by Manufacturer to Dealer are in lieu of all other warranties or conditions, whether express or implied, arising out of a course of dealing or usage of trade or otherwise, including but not limited to any implied warranties or conditions of merchantability, merchantable quality, fitness or adequacy for a particular purpose or use and quality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Dealer agrees to deliver the product's operation and maintenance manuals to the purchaser and recommend that purchaser reads Manufacturer's Warranty, to fully understand all disclaimers and limitations. Dealer agrees to complete and submit Product registration electronically (on manufacturer's website starting 1/1/2025) promptly upon delivery of the Products to the purchaser and assist manufacturer in performing Product defect and recall campaigns. In the event Dealer fails to register the product's warranty, Dealer shall indemnify Manufacturer against any liability, loss, or damage which Manufacturer may sustain directly as a result of any failure.

<u>Section 12</u>. <u>Repairs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 Dealer shall at all times be certified by either Yamaha or Mercury as an authorized parts and service dealer. Should only one certification be held by the dealer, the other outboard brand must have a locally identified service and warranty solution readily available. Additionally, Mercury V12 Certification must be held by the dealer or a local service provider if dealer sells or intends to sell V12 Mercury Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 Dealer agrees to provide timely warranty service on all Manufacturer's Products presented to Dealer by purchasers in accordance with Manufacturer's Warranty program in effect from time to time during the term of this Agreement. Dealer agrees to make all claims for reimbursement under Manufacturer's Warranty service program in the manner reasonably prescribed by Manufacturer. Manufacturer may revise its Warranty service program from time to time providing Dealer with written notification of all revisions and said revisions will supersede all previous programs and be made part hereof. Dealer agrees to establish and maintain a service department staffed and equipped to provide service to purchasers of Manufacturer's Products. Dealer agrees to maintain complete service records. Dealer shall provide warranty service on all Manufacturer's Products without regard to the dealership from which the Products were purchased. Dealer shall render and invoice non warranty service assistance to all owners of Manufacturer's Products upon their request. Manufacturer agrees to refer all claims for service on Products maintained or located in the Market Area and covered by Manufacturer's Warranty to Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 All warranty work must be preauthorized by Manufacturer. Manufacturer agrees to reimburse Dealer for all preauthorized warranty work at a labor rate as set forth in Addendum B. Manufacturer shall supply all parts required for warranty service by Dealer. Parts for warranty service shall be billed to the Dealer, and credits shall be issued once the old warranted parts are returned to Manufacturer.

<u>Section 13</u>. <u>Repurchase Right</u>. In the event that this Agreement is terminated or expires, Manufacturer shall have an option, but not the obligation, exercisable by it within thirty (30) days after such termination or expiration, to repurchase from Dealer at the price paid by Dealer (excluding any taxes) plus actual freight charges, and any additions to the boat made by Dealer (at Dealer's cost), any of the Products then owned by the Dealer. Dealer shall sell and deliver F.O.B. Dealer's address such Products to Manufacturer upon demand and tender of payment thereof. If Manufacturer does not exercise its option to repurchase, Dealer may sell any remaining inventory. Manufacturer shall not be obligated to purchase from the Dealer any boats, inventory, tools, equipment or furnishings upon termination, or expiration or non-renewal of this Agreement. The provisions of this paragraph shall survive the expiration or termination of this Agreement.

<u>Section 14</u>. <u>Trademarks</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 Grant of License. Subject to the terms and conditions hereof, Manufacturer hereby grants to Dealer a limited, non-exclusive, non-transferable and royalty-free license during the Term to use the YELLOWFIN trademark and other related trademarks, as amended from time to time by Manufacturer in its sole discretion (the "Trademarks") for the limited purpose of selling the Products at retail only from the Points of Sale and from the Website, and marketing, advertising and promoting the Products strictly in accordance with the written directions and standards of Manufacturer communicated to Dealer from time to time. Dealer shall use "®", "TM" or such other symbol directed by Manufacturer to indicate to the public that each of the Trademarks is a trademark owned by Manufacturer. Dealer shall also affix notices indicating that Manufacturer is the owner of the Trademarks and that the Trademarks are being used under license, on all advertising, marketing, signage or promotional material prepared, if any, by Dealer and approved in advance by Manufacturer. Dealer shall apply the following legend, or other legend as may be prescribed by Manufacturer from time to time: "YELLOWFIN and the fish design trademarks are owned by Yellowfin Yachts LLC and used under license". Dealer shall not assign, authorize, license, sublicense, grant or create any interest in, to or associated with, the Trademarks, or any one of them. Dealers must use trademarks in accordance with branding guidelines per the POP kit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 No Unauthorized Use of Trademarks. Dealer acknowledges that (a) Manufacturer owns all rights, title and interest in and to the Trademarks and all variations thereof, in any form or embodiment, and any other intellectual property rights associated with the Products, and (b) Dealer has no rights with respect thereto, except for the rights specifically granted under Section 14.1 of this Agreement. Dealer shall not assert any claim to any goodwill or title of the Trademarks by virtue of the licensed use of the Trademarks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 Additional Restrictions. Notwithstanding any other provision of this Agreement, Dealer shall not, under any circumstances, use the Trademarks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in combination with any other trademark, trade name, symbol or otherwise use the Trademarks, except as expressly provided in this Agreement; (b) as part of or as a domain name or in any meta-tags;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) or any variation or derivative thereof or any word or phrase or combination of words confusingly similar thereto or a colorable imitation thereof as part of the name of Dealer or any Points of Sale or any corporation or business entity in which the Dealer has any interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in a manner that might cause the Trademarks to be devaluated, affect the goodwill of the Trademarks, diminish in importance their prestige and value or otherwise damage Manufacturer 's reputation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) on or in connection with the sale or offering for sale of any item other than the Products, including apparel, acquired from Manufacturer, or in any location other than at the Points of Sale and on the Website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) dealer specifically understands that it may not acquire any promotional or other items bearing any of the Trademarks or any mark confusingly similar thereto, not affix any of the Trademarks to any promotional or other items, acquired from any third parties, nor may it design, commission or create any promotional or other items bearing the Trademarks or any mark confusingly similar therefore, without the prior written specific permission from an officer of the Manufacturer authorizing such acquisition or creation.

**Dealer Initial Here That Section 14.3 is Read, Understood, and Agreed:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 No Claims, Actions, or Threatened Actions by the Dealer. During the Term, and thereafter, Dealer shall not, directly or indirectly, in any way contest, dispute, impugn or impair the validity of, enforceability of, scope of rights of, or title to, any of the Trademarks or other intellectual property rights owned by Manufacturer and associated with the Products or do, encourage or assist others to do any act or thing in derogation of same.

<u>Section 15</u>. <u>Information</u>; Inspection. Dealer shall keep prepare and maintain, in accordance with standard industry practice, complete and accurate books and records, including all financial and accounting books, current itemized inventory, materials, data, documents and other pertinent information ("<u>Records</u>"), and retain throughout the Term and for a period of at least two (2) years thereafter ("<u>Audit Period</u>") all Records necessary to permit Manufacturer (or its designee) to: (a) review, verify and resolve disputes regarding amounts payable under this Agreement; and (b) confirm Dealer's compliance with and performance of all obligations, terms and conditions set forth in this Agreement. Manufacturer and its authorized representatives shall also have the right to review such Records, including full right of entry to perform a physical inspection of Dealer's Points of Sale, during normal business hours, with ten (10) business days notice, to inspect all inventory of the Products, the Repairs and Dealer's use of the Trademarks and in order to verify Dealer's compliance with the terms of this Agreement.

<u>Section 16</u>. <u>Other Dealer Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 Compliance with Laws. Dealer agrees to comply with all applicable laws in the operation of the dealership and the marketing and sale of the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 Insurance. Without limiting Dealer's indemnification obligations set forth in Section 22.1, or any other obligations under this Agreement, Dealer will, at its sole cost and expense, procure and maintain in effect at all times during the Term of this Agreement, and for one (1) year following the Term, insurance policies that meet the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Requirements</u>. All policies (a) will be written by insurers that are licensed to do business in the jurisdiction where the services
 are to be performed; (b) will be written by insurers which are S&P A rated or higher; and (c) will be primary and non- contributory
 with respect to any insurance policies Manufacturer or its affiliates carry or any self-insurance programs maintained by Manufacturer
 or its affiliates. All policies except workers compensation will include a waiver of subrogation in favor of Manufacturer and its
 affiliates and their officers, directors and employees. The limits specified below may be achieved through a combination of primary
 and umbrella policies. Dealer will ensure that Manufacturer receives thirty (30) day written notice prior to the cancellation, non-renewal
 or material change in coverage with respect to any of the policies listed below. Dealer is responsible for, and will pay, all deductible
 payments and self-insured retentions that are applicable to Dealer's insurance policies.

(b) <u>Certificates of Insurance</u>. Upon execution of this Agreement, and thereafter as the insurance policies renew, Dealer and its subcontractors
 will furnish Manufacturer with certificates of insurance evidencing the insurance coverage required herein and attaching endorsements
 evidencing compliance with these insurance requirements. Renewal certificates of insurance will be delivered to Manufacturer no later
 than thirty(30) days after the expiration of any policy.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Request for Copies of Policies</u>. To the extent that the Dealer has not provided Manufacturer with a copy of such policy and a Certificate
 of Insurance prior to or at the time of the execution of this Agreement, Dealer shall deliver such items within ten (10) days after
 the execution of this Agreement. In addition, Dealer will upon request provide Manufacturer with copies of any new or renewal insurance
 policies required under this Agreement within five (5) days from request.

(d) <u>Dealer's Minimum Insurance Coverages and Limits</u>. Each policy will be written on an occurrence form (excepting Errors & Omissions "E&O").
 All polices, except for Workers Compensation, E&O and Employer's Liability, will name Manufacturer and its affiliates as
 additional insureds with respect to the negligence of Dealer, its subsidiary (if any) and affiliated companies, directors, officers,
 subcontractors of each and every tier, employees and agents. Dealer will also ensure that each of its subcontractors names Manufacturer
 and its affiliates as additional insureds with respect to the negligence of the subcontractor and its subsidiary and affiliated companies,
 directors, officers, subcontractors of each and every tier, employees and agents. Dealer will maintain the following coverages and
 meet the following limits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Commercial General Liability</u>. Commercial general liability insurance, applicable to liability arising out of premises, operations, products,
 completed operations, contractual liability including tort liability of another assumed in a business contract, including bodily
 injury (including death) property damage, independent contractors, personal injury and advertising injury, along with associated
 defense costs, as well as any of Manufacturer's property in the care, custody or control of Dealer, with a limit of not less
 than three million US dollars ($3,000,000) each occurrence.

(ii) <u>Umbrella or Excess Liability</u>. An Umbrella or Excess liability policy with a minimum policy limit of two million US dollars ($2,000,000)
 each occurrence and in the aggregate.

<u>Section 17</u>. <u>Term</u>. Unless terminated earlier in accordance with the provisions of this Agreement, the initial term of this Agreement will commence on the Effective Date and will remain in force for one (1) year thereafter (the "Initial Term"). This Agreement shall be automatically renewed for successive one (1) year periods (each, a "Renewal Term", and collectively with the Initial Term, the "Term") unless either Party sends a written notice of termination to the other Party at least ninety (90) days prior to the expiration of the Initial Term or the then-current Renewal Term, as the case may be.

<u>Section 18</u>. <u>Termination for Breach of Dealer</u>. Notwithstanding Section 16 hereof and without in any way limiting any rights or remedies available to Manufacturer hereunder, at law or in equity, Manufacturer may terminate this Agreement immediately upon written notice to the Dealer in the event of the occurrence of any one or more of the following events unless such events were approved by prior written consent of manufacturer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 Dealer fails to pay any amount owing to Manufacturer hereunder, when due, within ten (10) business days after notice thereof is given to Dealer by Manufacturer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 Dealer uses the Trademarks in a manner not authorized by this Agreement, impugns the reputation or public image of Manufacturer, or discloses or uses any Manufacturer Confidential Information in breach of Section 21 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 Dealer purports to transfer any rights or obligations arising from this Agreement without Manufacturer's prior written consent, which may not be withheld or delayed unreasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 Dealer fails to perform its obligation to maintain Minimum Product Inventory Level Requirement under Section 6 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 Dealer fails to perform any other material obligation under this Agreement or breaches any material representation, warranty or covenant contained in this Agreement and such failure or breach is not remedied within thirty (30) days after notice thereof is given to Dealer by Manufacturer, provided the foregoing notice requirement will only be applicable if such failure or breach is capable of being remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.6 Dealer ceases or threatens to cease to carry on its business, or ceases or threatens to cease to carry on business from the Points of Sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.7 Dealer becomes insolvent or commits or threatens to commit any act of bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8 any proceeding is commenced or any step is taken by or against Dealer for any relief under the laws of any jurisdiction relating to bankruptcy, insolvency, reorganization, arrangement or winding-up;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9 Dealer makes an assignment for the benefit of its creditors or a trustee, a receiver or a receiver and manager or a liquidator is appointed with respect to Dealer or any of its property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.10 There is a change of Control of the Dealer or a material change in its management that results in a material change in marketing and/or merchandizing philosophies that is incompatible with the quality of the Manufacturer brand positioning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.11 Dealer has transferred Products from Points of Sale to other unauthorized locations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.12 Failure to comply in any material respect with any applicable and material law of the United States or regulation in connection with Dealer's obligations under this Agreement or in connection with the operation of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.13 Involvement by Dealer, or its owners, executives or managerial personnel in any activity that could reasonably be expected to damage Manufacturer's reputation, or that is generally considered immoral, illegal, or contrary to public policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.14 The liquidation of the Dealer or bulk sale of its inventory, or a good faith belief that such a closing, liquidation or sale may occur.

<u>Section 19</u>. <u>Termination for Breach of Manufacturer</u>. Notwithstanding Section 16 hereof and without in any way limiting any rights or remedies available to Dealer hereunder, at law or in equity, Dealer may terminate this Agreement immediately upon written notice to Manufacturer in the event of the occurrence of any one or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 Manufacturer purports to transfer any rights or obligations arising from this Agreement without Dealer's prior written consent, which may not be withheld or delayed unreasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 Manufacturer fails to perform any material obligation under this Agreement or breaches any material representation, warranty or covenant contained in this Agreement and such failure or breach is not remedied within thirty (30) days after notice thereof is given to Manufacturer by Dealer, provided the foregoing notice requirement will only be applicable if such failure or breach is capable of being remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3 Manufacturer ceases or threatens to cease to carry on its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4 Manufacturer becomes insolvent or commits or threatens to commit any act of bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5 any proceeding is commenced or any step is taken by or against Manufacturer for any relief under the laws of any jurisdiction relating to bankruptcy, insolvency, reorganization, arrangement or winding-up;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.6 Manufacturer makes an assignment for the benefit of its creditors or a trustee, a receiver or a receiver and manager or a liquidator is appointed with respect to Manufacturer or any of its property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.7 Failure to comply in any material respect with any applicable and material law or regulation in connection with Manufacturer's obligations under this Agreement or in connection with the operation of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.8 Involvement by Manufacturer, or its owners, executives or managerial personnel in any activity that is generally considered immoral, illegal, or contrary to public policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.9 The liquidation of Manufacturer or bulk sale of its inventory, or a good faith belief that such a closing, liquidation or sale may occur.

<u>Section 20</u>. <u>Effect of Termination or Expiration</u>. Without prejudice to any right or remedy available to Manufacturer or Dealer, as applicable hereunder, at law or in equity, upon termination or expiration of this Agreement for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1 all rights of Dealer or Manufacturer, as applicable, hereunder shall end;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2 Dealer will cease to represent itself as a dealer of the Products and will cease to sell, advertise, market and promote the Products in any manner whatsoever. For the avoidance of doubt, Dealer will continue to be entitled to sell, advertise, market and promote the Products held in stock by the Dealer at the moment of the termination of the Agreement and not repurchased by Manufacturer during the shortest possible but reasonable term, not to exceed twelve (12) months, as from termination of the Agreement to be able to liquidate such stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3 Dealer will immediately cease use of the Trademarks and forthwith remove from the Points of Sale and from the Website, any sign, display, inscription or other indication that bears any Trademark or indicates that Dealer sells any of the Products, and will not thereafter use any of Manufacturer's name, symbol, trademark, tradename, including any of the Trademarks, tending to give the impression that the relationship between Manufacturer and Dealer under this Agreement still exists, except in connection with the sale of Products held in stock by the Dealer at the moment of the termination of the Agreement and not repurchased by Manufacturer, not to exceed six (6) months as from the termination of the Agreement to be able to liquidate such stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4 an inventory of Products on hand will be taken by Dealer and such inventory will forthwith be shared with Manufacturer within ten (10) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5 Manufacturer will have the right to repossess Product inventory not then paid for and will, within thirty (30) days from the date of termination or expiration of this Agreement, have the option to repurchase all or any portion of the remaining Product inventory at the original invoice price thereof less the cost of refurbishing to be agreed upon prior to the return of the Products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.6 Dealer will return to Manufacturer all promotional, publicity or sales material which have been supplied to it by Manufacturer, within ten (10) days; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.7 The Parties will return all copies of confidential information, including without limitation, all documents and data of any kind communicated by Manufacturer or Dealer, as applicable.

<u>Section 21</u>. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1 Dealer recognizes and agrees that any and all information of a confidential nature with respect to Manufacturer, the Products, the Trademarks or the business or affairs of Manufacturer, revealed to it by Manufacturer or which came to its knowledge during the Term of this Agreement (collectively, the "Manufacturer Confidential Information") is of a confidential and proprietary nature to Manufacturer. Dealer agrees and undertakes, during the Term of this Agreement and at any time thereafter, not to directly or indirectly, (i) disclose any Manufacturer Confidential Information to any Person other than to Dealer's affiliates who have a need to know such information for the purpose of this Agreement; or (ii) use Manufacturer Confidential Information for purposes other than this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2 Manufacturer recognizes and agrees that any and all information of a confidential nature with respect to the Dealer or the business or affairs of the Dealer, revealed to it by the Dealer or which came to its knowledge during the Term of this Agreement (collectively, the "Dealer Confidential Information") is of a confidential and proprietary nature to the Dealer. Manufacturer agrees and undertakes, during the Term of this Agreement and at any time thereafter, not to directly or indirectly, (i) disclose any Dealer Confidential Information to any Person other than to Manufacturer's affiliates who have a need to know such information for the purpose of this Agreement; or (ii) use Dealer Confidential Information for purposes other than this Agreement.

<u>Section 22</u>. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1 Indemnification by Dealer. Dealer shall, at its cost and expense, defend, indemnify and hold Manufacturer and its directors, officers, employees and agents harmless from and against all claims, proceedings, liabilities, obligations, actions, damages, costs and expenses (including reasonable legal fees) arising out of, connected with or resulting from any of the following: (i) any act or omission of Dealer relating to the performance of this Agreement; (ii) any claim by a customer of Dealer related to the performance of Dealer's obligations; (iii) the breach of any representation, warranty or covenant of the Dealer, whether to Manufacturer or to a customer of Dealer; (iv) any warranty, condition, representation, indemnity or guarantee granted by Dealer or provided by law in the Points of Sale in addition to or in lieu of the limited warranties provided by Manufacturer hereunder; or (v) the violation of any law or regulation by Dealer in the sale or any other activity related to the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2 Indemnification by Manufacturer. Manufacturer shall, at its cost and expense, defend, indemnify and hold Dealer and its directors, officers, employees and agents harmless from and against all claims, proceedings, liabilities, obligations, actions, damages, costs and expenses (including reasonable legal fees) arising out of, connected with or resulting from any of the following: (i) any act or omission of Manufacturer relating to the performance of this Agreement; any claim by a customer of Dealer related to the performance of Manufacturer's obligations; the breach of any representation, warranty or covenant of Manufacturer, whether to the Dealer or to a customer of Dealer; the violation of any law or regulation by Manufacturer in its activity related to the Products.

<u>Section 23</u>. <u>Independent Status of Parties</u>. The relationship between Manufacturer and Dealer is that of seller and buyer and Dealer shall not represent itself to be the agent/mandatary of Manufacturer for any purpose and shall not have the right to enter into any contract or commitment on behalf of Manufacturer, or otherwise bind Manufacturer in any manner whatsoever.

<u>Section 24</u>. <u>Survival</u>. Those provisions of this Agreement that, by their nature, should survive the termination of this Agreement shall survive termination (including, without limitation, Section 11.2, Section 13, Section 20, Section 21, Section 31, Section 33 and Section 34 hereof).

<u>Section 25</u>. <u>Time of the Essence</u>. Time is of the essence in this Agreement.

<u>Section 26</u>. <u>Benefit of the Agreement</u>. This Agreement will inure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and permitted assigns of, the Parties hereto.

<u>Section 27</u>. <u>Entire Agreement</u>. This Agreement, including the addendums and any schedules, constitutes the entire Agreement between the Parties hereto with respect to the subject matter hereof and cancels and supersedes any prior understandings and agreements between the Parties hereto with respect thereto including, without limiting the foregoing, any previously executed authorized dealer agreements between the Parties hereto, which the Parties acknowledge have been merged into such documents, exhibits and schedules. In the event of any conflict between addendum A and this agreement, addendum A shall control. There are no representations, warranties, terms, conditions, undertakings or collateral agreements, expressed, implied or statutory, between the Parties other than as expressly set forth in this Agreement.

<u>Section 28</u>. <u>Amendment and Waiver</u>. No modification of, or amendment to, this Agreement is valid or binding unless set forth in writing and executed by both Parties hereto. Any waiver of any breach or any term or provision of this Agreement is effective only if made in writing and signed by the Party purporting to give same and only in the specific instance and for the specific purpose for which it has been given.

<u>Section 29</u>. <u>Assignment</u>. This Agreement and the rights, duties, and obligations hereunder may not be assigned, sublicensed or delegated by Dealer, whether voluntarily or by operation of law, without the prior written consent of Manufacturer. Any assignment or sublicense of rights or delegation of duties or obligations hereunder made by Dealer without the written consent of Manufacturer shall be void and be of no effect. Notwithstanding the foregoing, Dealer may assign or sublicense its rights or delegate its duties hereunder to: (i) any person that directly or indirectly is controlled by, controls, or is under common control with the Dealer; (ii) a successor of Dealer, by consolidation, merger or operation of law; or (iii) a purchaser of all or substantially all of Dealer's assets.

<u>Section 30</u>. <u>Severability</u>. If a provision of this Agreement or its application to any Party or circumstance is restricted, prohibited or unenforceable, that provision shall be ineffective only to the extent of that restriction, prohibition or unenforceability and, if applicable, without affecting its application to the other Parties or circumstances and will not affect the enforceability of any other provision of this Agreement.

<u>Section 31</u>. <u>Injunctive Relief</u>. Dealer acknowledges and agrees that: (a) a violation of any provisions of 14 (Trademarks) or Section 21 (Confidentiality) of this Agreement may result in immediate and irreparable harm and damage to Manufacturer or Dealer, as applicable; and (b) in the event of any violation of any of the provisions of this Agreement dealing with Confidentiality and Trademarks, Manufacturer or Dealer may, in addition to any other right to relief hereunder, be entitled to equitable relief by way of temporary or permanent injunction and to such other relief as any court of competent jurisdiction may deem just and proper.

<u>Section 32</u>. <u>Force Majeure</u>. Neither Party is responsible for any failure to perform its obligations under this Agreement, if it is prevented or delayed in performing those obligations by an event of Force Majeure. Where there is an event of Force Majeure, the Party prevented from or delayed in performing its obligations under this Agreement must immediately as practicable notify the other Party giving full particulars of the event of Force Majeure and the reasons for the event of Force Majeure preventing that Party from, or delaying that Party in performing its obligations under this Agreement and that Party must use its reasonable efforts to mitigate the effect of the event of Force Majeure upon its or their performance of the Agreement and to fulfil its or their obligations under this Agreement. Upon completion of the event of Force Majeure the Party affected must as soon as reasonably practicable recommence the performance of its obligations under this Agreement. An event of Force Majeure does not relieve a Party from liability to pay money in a timely manner which matured prior to the occurrence of that event. "Force Majeure" shall mean an event or circumstance which is beyond the control and without the fault or negligence of the party affected and which by the exercise of reasonable diligence the party affected was unable to prevent provided that event or circumstance is limited to the following: (a) riot, war, invasion, act of foreign enemies, hostilities (whether war be declared or not), acts of terrorism, civil war, rebellion, revolution, insurrection of military or usurped power, requisition or compulsory acquisition by any governmental or competent authority; (b) ionising radiation or contamination, radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel, radioactive toxic explosive or other hazardous properties of any explosive assembly or nuclear component; (c) earthquakes, flood, fire or other physical natural disaster, but excluding weather conditions regardless of severity; and (d) pandemics or epidemics (e) strikes or industrial disputes, or strike or industrial disputes by labor not employed by the affected party, its subcontractors or its Manufacturers and which materially affect the supply or delivery of Products to Dealer.

<u>Section 33</u>. <u>Notices</u>. Any demand, notice or other communication to be given in connection with this Agreement must be given in writing and must be given by personal delivery or by electronic means of communication addressed to the recipient as follows: (i) if to Manufacturer: Yellowfin Yachts, LLC, 6510 19<sup>th</sup> Street East, Sarasota, Florida 34243, or (ii) if to Dealer, as set forth on <u>Addendum B</u>, or in either case, to such other address, individual or electronic communication number as may be designated by notice given by either Party to the other. Any demand, notice or other communication given by personal delivery will be conclusively deemed to have been given on the day of actual delivery thereof and if given by electronic means of communication, on the day of transmittal thereof if given during the normal business hours of the recipient and on the next business day if not given during such hours on any day.

<u>Section 34</u>. <u>Dispute Resolution; Governing Law</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.1 This Agreement will be governed by and construed in accordance with the laws of the laws of the State of Florida. Except as set forth in Section 31, any dispute, controversy, claim, dispute or disagreement relating to this Agreement of its addendums, including but not limited to the interpretation thereof, or its breach or existence, which cannot be resolved amicably by the Dealer and Manufacturer shall be referred to arbitration, which shall be the sole and exclusive forum for resolution and settlement of any dispute, controversy or claim between the Parties. The arbitration shall be conducted in accordance with JAMS pursuant to its Comprehensive Arbitration Rules and Procedures and in accordance with the Expedited Procedures in those Rules by one arbitrator who shall be appointed in accordance with such Rules. The seat of the arbitration shall be in Miami- Dade County, Florida. All awards rendered by the arbitrators shall be final and binding and subject to no appeal. Any award of the arbitral authority shall be final and binding upon the dealer and seller with respect to all disputes, claims or controversies encompassed therein and the Dealer and Manufacturer shall comply with said award without delay. The arbitral authority shall, in its award, fix, and apportion the costs of arbitration. The award of the arbitral authority may be enforced by any court having jurisdiction over the party against which the award has been rendered or where assets of the party against which the award has been rendered can be located. The dealer and seller further understand and agree that arbitration shall be the sole and exclusive forum for resolving any dispute, controversy or claim relating to this Agreement, Terms and Conditions, and other addendums to this Agreement and that neither party shall resort to any court except to compel arbitration, refer questions of law or to conform, vacate or modify such award. Any arbitration or court proceeding commenced by either party arising from their dealership relationship shall only be brought in Miami-Dade County, Florida. The provisions of this paragraph shall survive the expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.2 ARBITRATION AND WAIVER OF JURY TRIAL: THIS AGREEMENT CONTAINS PROVISIONS FOR BINDING ARBITRATION AND WAIVER OF JURY TRIAL. YOUR ACCEPTANCE OF THIS AGREEMENT INCLUDES YOUR ACCEPTANCE OF AND AGREEMENT TO SUCH PROVISIONS. WHEN ARBITRATION IS INVOKED FOR CLAIMS SUBJECT TO ARBITRATION, YOU AND YELLOWFIN YACHTS WILL NOT HAVE THE RIGHT TO PURSUE THAT CLAIM IN COURT OR HAVE A JURY DECIDE THE CALIM AND YOU WILL NOT HAVE THE RIGHT TO BRING OR PARTICIPATE IN ANY CLASS ACTION OR SIMILAR PROCEEDINGS IN COURT OR IN ARBITRATION.

<u>Section 35</u>. <u>Legal Fees</u>. With respect to any dispute among the parties arising out of or relating to this Agreement, Terms and Conditions, or any of the addendums to this Agreement, the reasonable attorneys' fees and costs incurred by the prevailing party in connection with such dispute shall be paid by the other party or parties to such dispute.

<u>Section 36</u>. <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together constitute one agreement. Delivery of an executed counterpart of this Agreement by facsimile or transmitted electronically in legible form, including a tagged image format file (TIFF) or portable document format (PDF) shall be equally effective as delivery of a manually executed counterpart of this Agreement.

<u>Section 37</u>. <u>Construction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.1 Whenever required by the context, and is used in this Agreement, the singular number shall include the plural, and vice versa. When appearing in this Agreement, the words "<u>include,</u>" "<u>includes</u>" and "<u>including</u>" shall be deemed to be followed by the words "<u>without limitation</u>" (whether or not they are in fact followed by such words) or words of like import.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.2 For purposes of this Agreement, "Person" means an individual, corporation, partnership, joint venture, limited liability company, association, trust or other entity or organization, including, without limitation, an unincorporated organization, a government or political subdivision or an agency or instrumentality thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.3 For purposes of this agreement "Control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities, by written agreement or otherwise.

**IN WITNESS WHEREOF** the Parties have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **MANUFACTURER:** | **MANUFACTURER:** |
| YELLOWFIN YACHTS, LLC | YELLOWFIN YACHTS, LLC |
| By: | /s/ Ryan Greseth |
| Name: | Ryan Greseth |
| Title: | Vice President, Sales, Dealer, Yellowfin Yachts, LLC |
| **DEALER:** | **DEALER:** |
| Dealer Name: | Off The Hook Yacht Sales NC LLC |
| By: | /s/ Jason Ruegg |
| Name: | Jason Ruegg |
| Title: | President |

---

<u>**Addendum A**</u>

<u>**Addendum B**</u>

## Exhibit 10.15

**Exhibit 10.15**

**Nor-Tech Hi-Performance Boats**

**Sales** & **Dealership Agreement**

THIS AGREEMENT is made and entered into this 25th day of April 2025, by and between NT Manufacturing, LLC, organized and existing under the laws of the State of Florida with its principal place of business located at 2520 NE 9<sup>th</sup> Ave, Fort Myers, Florida 33909 (hereinafter referred to as "Builder") and Off the Hook Yacht. Sales, LLC. organized and existing under the laws of Florida with its principal place of business 1701 JEL WADE DRIVE, WILMINGTON, NC 28401 (herein after referred to as "Dealer").

**Recitals:**

Builder is engaged in the design and manufacture of "Nor-Tech" brand offshore high-performance powerboats ("Powerboats") and Dealer desires to become a Dealer for such Powerboats.

NOW THEREFORE, in consideration of the mutual promises and covenants contained herein the parties agree as follows:

**Agreement**

1. <u>**Appointment of Dealer**</u> -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Builder hereby appoints Dealer as a non-exclusive authorized dealer for the retail sale, display, promotion and servicing of "Nor-Tech" brand offshore high-performance powerboats, and related products, accessories, and apparel (hereinafter "Products") in accordance with the terms and conditions as hereinafter set forth, including any addenda attached hereto. Dealer has not paid any fee or other consideration for this agreement. Neither this agreement nor any right granted by this agreement is a property right. Neither this agreement nor any right or responsibility under this agreement may be transferred, assigned, delegated, or sold by Dealer without the written consent of Builder which may be withheld in Builder's sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Dealer shall display, promote, sell at retail, and service Products purchased from Builder solely within the geographical area that is proximate to the location set forth on the signature page to this Agreement and operated by Dealer (hereinafter "Dealer Location"). Further:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Dealer
 agrees not to change a Dealer Location nor sell from an additional location without the express
 prior written consent of Builder.

ii. Except
 as otherwise provided herein, Dealer may only sell product to a retail purchaser (hereinafter
 "Customer") who is located in the geographical area that is proximate to the
 Dealer Location (hereinafter "Dealer's Territory"). For
purposes of this agreement the designated Dealer's Territory shall be North Carolina and South Carolina with specific zip codes
for each state.

iii. Dealer
agrees not to purchase Product from any source other than Builder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Builder
 reserves the right to maintain and sell previous clients into all current territories. In
 addition to previous clients, Builder also may sell directly to clients outside of current
 territories (hereinafter "Factory Territory"). \*This is to ensure that the Product
 being sold is delivered with agreed terms on how the client will be serviced and received
 the Nor-Tech Experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Dealer
 must submit a formal request and be granted approval by Builder prior to selling any Product
 outside of specified Dealer's Territory including any and all sales into Factory Territory.
 In the event that the Dealer does not request by Builder and continues with the sale, a 5%
 penalty of the Dealer's cost of Product being sold will be added. No international
 sales will be granted to any Dealer. All international sales will be handled by Builder.

---

| | |
|:---|:---|
| v1. | The sale of Product from Dealer outside of Dealer's Territory into another Dealer's Territory is strictly prohibited. The following exemption(s) are allowed with approval from Builder. Dealer may sell Product outside of Dealer's Territo1y into another Dealer's Territory without penalty if Dealer can provide an established sales relationship "Boat Guy" prior to date of sale. Otherwise, Dealer must pay a penalty to the Dealer in which Dealer's Territory the sale will be made. The penalty will be in the amount equal to 5% of the Dealer's cost of Product being sold. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Both
 Dealer and Builder are allowed to sell inventoried Product that is completed into other Dealer
 Territory and Factory Territory without penalty upon Builder approval. Inventory should be
 updated with Builder on a weekly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Breach of any condition in this section 1 shall be deemed a non-curable material breach of this Agreement and shall constitute grounds for immediate termination hereof by Builder.

2. <u>**Definitions**</u> - The following
 terms shall have the following meanings when used in this agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. "Dealer"
 - The corporation, partnership, or proprietorship as identified above.

b. "Dealer
 Agreement" - This Dealer Sales and Dealership Agreement, including the agreement proper
 that is executed, and all the related documentation.

c. "Dealer
 Operator" - Principal manager of Dealer identified in last paragraph below on whose
 personal service Builder relies in entering into the Dealer Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. "Dealer
 Owner" - Owner of Dealer identified in last paragraph below on whom Builder relies
 in entering into the Dealer Agreement.

e. "Dealership
 Location" - The location approved by Builder for the purpose of conducting Dealership
 Operations.

f. "Dealership
 Operations" - All operations contemplated by the Dealer Agreement. These operations
 include the sale and service of Products and any other activities undertaken by Dealer related
 to Products, including rental and leasing operations, repair and service shop operations,
 and finance and insurance operations whether conducted directly or indirectly by Dealer.

g. "Dealership
 Premises" - Approved facilities provided by Dealer at its Dealership Location for the
 conduct of Dealership Operations.

h. "Builder"
 - Builder Corporation identified above.

i. "Marks"
 - The various trademarks, service marks, names, model names and designs used by Builder and
 its affiliated companies in connection with Products.

J. "Powerboats" - All current model types or series of new Powerboats specified in by Builder from time to time and all past
Builder Powerboats marketed through Powerboats Dealers..

k. "Powerboat Dealers" - Dealers that are a party to a Dealer agreement for the line of products constituting Powerboats.

m. "Parts
 and Accessories" - New or remanufactured powerboat parts and accessories marketed by
 Builder and listed in current Price Schedules or supplements furnished to Dealer.

n. "Products"
 - Powerboats, Parts and Accessories.

o. "Special
 Powerboats" - Powerboats that have limited marketability because they differ from Builder's
 standard specifications or incorporate special equipment.

p. "Inventory
 Product" - Specified as a spec boat that is 100% complete, funded by dealer, and located
 at Dealer's location.

3. <u>**Management and Ownership**</u> - Builder is entering into this agreement in reliance on the capabilities of the person(s) identified below and on Dealer's assurance that their personal services will be provided in the Dealership Operations. Dealer represents that such person(s) will be the principal manager(s) of Dealer ("Dealer Operator") and the principal owner(s) of Dealer ("Dealer Owner"). Builder and Dealer agree that the Dealer Operator(s) will actively exercise full managerial authority in the Dealership Operations, and that all owners of Dealer will each continue to own, both ofrecord and beneficially, the percentage of ownership represented by Dealer in the Dealer Statement of Ownership approved by Builder.

4. <u>**Changes in Management and Ownership**</u> - If Dealer desires to make a change in its Dealer Operator(s) or ownership or sell its principal assets to a party that wishes to become an authorized Dealer, Dealer will give Builder prior written notice of the proposed change or sale. Builder shall not arbitrarily refuse to agree to the proposed change or sale. Dealer agrees to provide in the form requested and in a timely manner all applications and information customarily requested by Builder to evaluate the proposed change or sale. Builder agrees to consider all factors requested by Dealer and base its decision on whether the proposed change is likely to result in a successful Dealership operation with acceptable management and ownership which will provide satisfactory sales and service for customers.

**5. <u>Term</u>** - Subject to the earlier termination of this agreement as provided below, the term of this agreement shall be for one year, commencing on 4/25/2025 and ending 04/24/2026, provided that unless so terminated early.

6. <u>**Execution on Behalf of Builder and Dealer**</u> - Neither this agreement nor any related agreement, including but not limited to Builder approved Purchase Order forms will be valid unless it is signed on behalf of Dealer by its authorized representative and, in the case of this document, by its chief executive officer. Builder shall be entitled to assume that a person executing a Purchase Order or signing such other document on Dealer letterhead is a Dealer authorized representative unless notified in writing otherwise by Dealer's chief executive officer.

**7.** **<u>Sales of Powerboats to Dealer</u> -**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Powerboats Addendum* - Builder has furnished Dealer a Powerboats Addendum specifying the current model types or series of new Powerboats which Dealer may order. Builder may change the Powerboats Addendum by furnishing Dealer a superseding Powerboats Addendum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Processing of Dealer's Orders* - Orders for new Powerboats will be submitted and processed in accordance with procedures established by Builder. No order shall be considered valid unless submitted on a Builder approved Purchase Order signed by the Dealer's authorized representative and accompanied by the deposit required by Builder. Builder will endeavor to distribute new Powerboats among authorized dealers and factory direct sales representatives in a fair and equitable manner. Dealer's orders for new Powerboats are not binding on Dealer or Builder until accepted by Builder signing said Purchase Order in the space provided and may be canceled by Dealer until that time. Builder may install any equipment or accessories required by law on any Powerboats ordered by Dealer whether or not such items are included in Dealer's order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. *Prices and Other Terms of Sale* - Prices, destination charges, and other terms of sale applicable to purchases of new Powerboats will be those established in accordance with the Dealer Price Schedule and Terms of Sale Bulletin furnished to Dealer by Builder, provided, however, that if no such Bulletin is issued then the price charged to Dealer by Builder for any Powerboat purchased by Dealer shall be 35% off the retail sales price for the following models: 340 CC, 390 CC, 400 CC, and 450 CC. The 392 Superfish and 452 Superfish belong to a separate and specific program that must be opted in. All models not previously listed are considered custom boats and are subject to special pricing, retail contracts must be submitted to the Builder for review and approval. Once approved, custom boats will yield a 10% commission to Dealer. Prices, destination charges, and other terms of sale applicable to any Powerboats may be changed at any time by Builder, except as otherwise provided by Builder in writing, these changes will not apply to orders already made by Dealer and accepted by Builder at the time the changes are made effective. Except with respect to the establishment of initial prices for a new model year or for any new model or model type, Builder will give written notice to Dealer of any price increase before shipping any Powerboats to which the increase applies. Dealer may cancel or modify the affected orders by delivering a written notice to Builder within five days after receipt of the notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. *Payment of Purchase Price* - Dealer shall pay Builder for each Powerboat purchased under this agreement in accordance with the following schedule:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. $20,000.00
 upon submission of Purchase Order for models 340 and 390 or $40,000
for 450 models and larger plus specialty boats, provided that said deposit shall be immediately returned to Dealer if said Purchase Order
is not accepted by Builder.

11. 33
 1/3% of the purchase price balance shall be paid upon written notice by Builder that the
 Powerboat hull corresponding to the Purchase Order one week prior to being placed into the
 mold. In the event payment is not made by the terms listed above, Builder is not obligated
 to start Powerboat Hull and is subject to delay start at Builder's discretion.

iii. 33
 1/3% of the purchase price balance shall be paid upon written notice by Builder once the
 boat moves from the lamination department to the rig shop . If balance is not received within
 (2) weeks of invoice, a finance charge may be applied. All larger plus specialty boats are
 at the Builder's discretion.

iv. The
 remaining balance shall be paid immediately upon completion of the Powerboat corresponding
 to the Purchase Order. Payment must be received in full by Builder from Dealer prior to any
 Powerboat delivery.

Upon the payment in full of the purchase price, Builder shall deliver to Dealer either a Manufacturer's Statement of Origin to a boat sold in the State of Flo1ida and/or a Builder's Certificate at its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. *Powerboats Production and Delivery* - Upon acceptance of a Purchase Order Builder shall issue a production slot identification number for said order. This slot may not be sold or otherwise assigned to another Purchase Order without the express written consent of Dealer provided that Dealer must then be in compliance with the terms and conditions of this Agreement. Due to the high demand and highly custom nature of the Builder's Powerboats Dealer understands, acknowledges and agrees that Builder cannot and thus maims no representation, guaranty or warranty as to the delivery date of any Powerboat ordered pursuant to this agreement and Dealer shall mal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. *Excusable Delay or Failure to Fill Orders or Accept Delivery* - Dealer will not be liable for any delay or failure to accept delivery and Builder will not be liable for any delay or failure to deliver Powerboats where the delay or failure is caused, in whole or in part, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Any
 strike or labor trouble in Dealer's establishment or in the plants of Builder or its
 suppliers;

ii. Any
 shortage or curtailment of utilities, materials, transportation or labor or any shortage
 or damage to productive facilities;

iii. Any
 act of government, including the enactment of laws or regulations or issuance of judicial
 or administrative injunctions or orders;

iv. Any curtailment of production due to economic conditions; or any discontinuance of manufacture or sale by
Builder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Any
 cause beyond the control of Dealer or Builder.

If any Powerboats ordered by Dealer are diverted or returned because of Dealer's unexcused delay or failure to accept delive1y, Dealer will pay any additional costs incurred by Builder as a result of such diversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. *Discontinuance of and Changes in Powerboat Models or Lines* - Builder may discontinue any line of Powerboat, or change the design or specifications of any Powerboat or item of optional equipment at any time without notice and without incurring any obligation to Dealer.

**8. <u>Warranties on Products</u>** **-**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Builder warrants new Powerboats and Parts and Accessories ("Products") to retail owners as set forth in documents containing those warranties that are provided with the Products or as set forth in the Service Policies and Procedures Manual. Except as otherwise provided by law the written Builder warranties are the only warranties applicable to new Products and Dealer hereby represents and warrants that it shall deliver said written warranty to the buyer of such Powerboats. With respect to dealers, such warranties are in lieu of all other warranties or liabilities, express or implied, including any implied warranty of merchantability or fitness for a particular purpose or any liability for commercial losses based on negligence or Builder's strict liability. Except as may be provided under an established Builder program or procedure, Builder neither assumes nor authorizes anyone to assume for it any other obligation or liability in connection with Products, and Builder's maximum liability is to repair or replace the Product. DEALER ACKNOWLEDGES THAT BUILDER HAS NOT MADE ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS TO IT WITH RESPECT TO ANY PRODUCT, INCLUDING WITHOUT LIMITATION, ITS MERCHANTABILITY, SUITABILITY, DESIGN, CAPACITY, TOP SPEED, CRUISING SPEED, OR ITS FITNESS FOR ANY PARTICULAR USE OR PURPOSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Builder does not warranty any vinyl or upholstery material(s) against fading, weathering, and or mold related issues. This includes material(s) but not limited to those claiming resistant to or impervious to conditions previously listed.

9. <u>**Dealership Operations**</u> -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Responsibility of Dealer Operator* - It is the responsibility of each Dealer Operator to provide personal services by exercising managerial authority for Dealer's conduct of the operations contemplated by this agreement ("Dealership Operations"). Dealership Operations include the sale and service of Products and any other activities undertaken by Dealer related to Products, including rental and leasing operations, used boat sales, and repair and service shop operations, and finance and insurance operations whether conducted directly or indirectly by Dealer. Dealer's success is dependent on its effectiveness in selling and servicing Powerboats and in conducting all the related activities which comprise Dealership Operations. Such effectiveness is ultimately dependent on the Dealer Operator, who must assume full and complete managerial authority and responsibility for all Dealership Operations and who should be a competent business person, an effective manager, and an experienced merchandiser of powerboat related products and service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Dealership Location and Premises* -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Responsibility of Dealer</u> -
 Dealer shall provide facilities ("Dealership Premises") at the Dealership Location,
 or such other location as Builder agrees to in writing, that will enable Dealer to effectively
 perform and conduct its Dealership Operations. The Dealership Premises shall be satisfactory
 as to appearance and layout, properly equipped for the conduct of the Dealership Operations.
 Dealer will conduct the Dealership Operations only from the location ("Dealership Location")
 approved for that purpose by Builder and will not, either directly or indirectly, establish
 any place of business for the conduct of any of its Dealership Operations except at the Dealership
 Location, unless Builder otherwise agrees in writing.

ii. Changes - If Dealer desires to make any changes in the Dealership Location or in
the uses or purposes of any of the Dealership Premises, Dealer agrees to give Builder prior written notice so Builder can discuss the
effect of the proposed change with Dealer. No change in Dealership Location or in the use of Dealership Premises in Dealership Operations
will be made without the written approval of Builder.

iii. <u>Signs</u> - Unless Builder
 otherwise agrees in writing Dealer will install and maintain in appropriate places at the
 Dealership Premises product and service signs approved by Builder, and such other signs as
 Builder and Dealer agree are appropriate to advertise the Dealership Operations.

iv. <u>Other Malrns and Model Lines</u> - Dealer hereby represents and warrants that it is a dealer or otherwise offers or markets for sale
 new boats from the following new boat manufacturers: _______________________________________________________________________, and
further agrees that it shall not agree to act as a dealer or offer to market or sell boats for any additional manufacturers without the
express written consent of Builder, which consent may be withheld for any reason at the sole discretion of Builder. Notwithstanding the
foregoing, however, Builder's sole remedy for a violation of this provision shall be to terminate this Agreement in accordance
with the termination provisions set forth in paragraph 12, below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. *Sales Performance* -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Responsibility
of Dealer - Dealer is responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Actively
 and effectively selling and, if Dealer elects, renting and leasing new Powerboats to customers
 of Dealer; and

b) Actively
 and effectively promoting, through Dealer's own advertising and sales promotion activities,
 the purchase and use of new Powerboats by customers located in Dealer's Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Sales Operations and Activities of Dealer - In furtherance of the objectives of
this agreement, Dealer agrees to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Maintain
 an adequate force of trained sales personnel;

b) Maintain
 a high standard of ethical advertising and sales activities in promoting its Dealership Operations;

c) Explain
 to Product purchasers the items which make up the purchase price, and give them any information
 required by law;

d) Refrain
 from making any misleading statements concerning the nature or amount of items making up
 the total selling price of a Powerboat;

e) If
 Dealer installs on a Powerboat any equipment, accessory, or part that has not been supplied
 by Builder, Dealer will disclose this fact to the purchaser and will advise the purchaser
 that the item is not included in wan-anties furnished by Builder. Dealer will write such
 disclosure on the purchase order if the purchaser is to sign the order. In all cases, the
 purchaser's bill of sale or receipt will include such disclosure. Dealer will clearly
 explain to the purchaser the extent of the wan-anty given by the Builder of any such equipment,
 accessory, or part, and will deliver a copy of the warranty, ifin writing, to the purchaser,
 along with the Builder approved Operator's Manual, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Sales Projections</u> -
 On_ November 30th of each year during the term and any renewals hereof Dealer shall deliver
 to Builder a written sales projection for all Powerboats Dealer intends to purchase from
 Builder during the immediately ensuing twelve month term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Inventory</u> - At all times
 during the term and any hereof Dealer shall have taken delivery of a minimum of at least
 5 boats per year. Any Dealer that does not meet this requirement is subject to review prior
 to the next year's Dealer Agreement renewal.

10. <u>**Trademarks and Service Marks**</u> -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Exclusive Ownership* - Builder or its affiliates are the exclusive owners of the various trademarks, service marks, names, model names and designs, including but not being limited to Super Cat, Super V, All Center Console Models, NOR-TECH, etc. ("Marks") which they use in connection with the Powerboats and related Products and Accessories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Use by Dealer* - Dealer is granted the nonexclusive right of displaying the foregoing Marks in the conduct of its Dealership Operations. The foregoing Marks may be used as part of the name under which Dealer's business is conducted only with the express written approval of Builder. Dealer will change or discontinue the use of any Mark on Builder's request. No company owned by or affiliated with Dealer or any of its owners may use any Mark or product name without Builder's written permission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. *Discontinuance of Use on Termination* - On te1mination of this agreement, Dealer shall immediately discontinue or cause to be discontinued, at its expense, all use of Marks. Subsequently, Dealer will not nse, either directly or indirectly, any Builder Marks or any other confusingly similar marks in a manner likely to cause confusion or mistalce or to deceive the public.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. *Dealer's Liability for Failure to Discontinue Use* - Dealer shall reimburse Builder for all legal fees and other expenses incurred in connection with any legal action to require Dealer to comply with this Section.

11. <u>**Establishment of Additional Dealers**</u> - Builder reserves the right to appoint additional Powerboats Dealers. Builder will notify Dealer prior to appointing another Powerboat dealer in Dealer's Territory and will give Dealer an opportunity to present information relevant to such an appointment. If Builder tentatively decides circumstances warrant establishing an additional Dealer in such area, Builder will advise Dealer in writing and give Dealer ten (10) days to present further relevant information before a final decision is made. Notwithstanding any other provision of this agreement, the final decision whether to establish an additional Dealer shall be made by Builder solely pursuant to its own business judgment and nothing in this agreement shall be construed to require Dealer's consent to the establishment of an additional Dealer.

12. <u>**Termination**</u> -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Termination of Agreement* -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** <u>Termination by Dealer</u> -
 Dealer may terminate this agreement by written notice to Builder. Termination will be effective
 60 days after Builder's receipt of the notice unless otherwise mutually agreed in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Termination Due to Certain Acts or Events</u> -
 Each of the following represents an act or event that is within the control of Dealer or
 originates from action taken by Dealer or its management or owners and which is so contrary
 to the spirit and objectives of this agreement as to warrant its immediate termination by
 Builder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The
 removal, resignation, withdrawal, or elimination from Dealer for any reason of any Dealer
 Operator or Dealer Owner without the prior written approval of Builder;

b) Any
 misrepresentation to Builder by Dealer or by any Dealer Operator or owner in applying for
 this agreement or as to the record or beneficial ownership or management of Dealer;

c) Any
 attempted or actual sale, transfer, or assignment by Dealer of this agreement or any of the
 rights granted Dealer under this agreement, or any attempted or actual transfer, assignment,
 or delegation by Dealer of any of the responsibilities assumed by it under this agreement
 without the prior written approval of Builder;

d) Any
 change, whether voluntary or involuntary, in the principal management or in the record or
 beneficial ownership of Dealer as set forth in the Dealer Statement of Ownership furnished
 by Dealer without the prior written approval of Builder;

e) Any
 undertaking by Dealer or any of its owners to conduct, either directly or indirectly, any
 of the Dealership Operations at any unapproved location;

f) Any
 sale or other transfer, by operation of law or otherwise, or any relinquishment or discontinuance
 of use by Dealer, of any of the Dealership Premises or other principal assets required in
 the conduct of the Dealership Operations, without the prior written approval of Builder;

g) Any
 dispute or disagreement between or among the owners or management personnel of Dealer which,
 in the opinion of Builder, may adversely affect the Dealership Operations or the interests
 of Dealer or Builder;

h) Insolvency
 of Dealer; filing of a voluntary Petition in bankruptcy by Dealer; filing of a petition to
 have Dealer declared bankrupt or appointment of a receiver or trustee for Dealer, provided
 such filing or appointment is not vacated within three (3) months; or execution by Dealer
 of an assignment for the benefit of creditors or any foreclosure or other due process of
 law where a third party acquires rights to the operation, ownership, or assets of Dealer;

i) Failure
 of Dealer to conduct its customary sales and service operations during its customary business
 hours for 10 consecutive business days;

j) Conviction
 in a court of original jmisdiction of Dealer or any Dealer Operator, principal officer, or
 owner of Dealer of any crime which is punishable by imprisonment; or any finding by a government
 agency or court of original jurisdiction that Dealer had committed any unfair business practice
 which, in the opinion of Builder, may adversely affect the reputation or interests of Dealer
 or Builder;

k) Submission
 by Dealer of false applications or claims for any payment, credit, discount or allowance
 or of false orders for Products or reports of delive1y or transfer
of Products if such applications, claims, orders or reports are fraudulent or part of a pattern of false applications, claims, orders
or reports, whether or not Dealer offers or makes restitution;

1) Refusal by Dealer to timely furnish sales or financial information and related supporting data, or to permit Builder to make an examination or audit of Dealer's accounts and records, provided such failure or refusal continues after receipt by Dealer from Builder of a written request for such information or permission;

m) Willful failure of Dealer to comply with the provisions of any laws or regulations relating to the sale or service of Products.

n) Failure by Dealer to abide by the terms and conditions of paragraph 9B, above.

When Builder learns that any of the foregoing acts or events has occurred, Builder will endeavor to discuss it with Dealer. Subsequently, Builder may terminate this agreement by giving Dealer written notice of termination, such termination to be effective on receipt by Dealer of such notice or at such later date as may be specified in the notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Termination by Builder for Failure of Performance by Dealer</u> - If Builder determines
that Dealer has failed to provide adequate premises, or to adequately perform its sales or service responsibilities, Builder will review
the failure with Dealer. As soon as practicable, Builder will notify Dealer in writing of the nature of Dealer's failure of performance
and of the period of time during which Dealer will be expected to remedy the failure. If the failure has not been substantia11y remedied
at the expiration of the period, Builder may tern1inate this agreement by giving Dealer 30 days advance written notice.

iv. <u>Termination Because of Incapacity of Dealer Operator</u> - Because of the personal service nature of
 this agreement, Builder may terminate this agreement by written notice to Dealer if Dealer
 Operator is so physica11y or menta11y incapacitated that the Dealer Operator is unable to
 actively exercise full managerial aufuority. The effective date of termination will be stated
 in fue written notice.

v. <u>Termination for Failure to be Licensed</u> - If Builder or Dealer fails to secure or
maintain any license required for the performance of its obligations under this agreement, or the license is suspended or revoked, irrespective
of the cause, either party may immediately terminate this agreement by giving the other party written notice.

vi. <u>Termination by Agreement</u> - This agreement may be terminated at any time by written
agreement between Builder and Dealer.

vii. <u>Termination due to Expiration of Term</u> - Notwithstanding any provision of this agreement to the contrary,
 this agreement may be terminated effective at the conclusion of the initial term or any renewal
 term by either party providing the other written notice at least 60 days prior to the expiration
 thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *Obligations after Termination* -

i. Effect of Termination on Orders - If Dealer and Builder do not enter into a new
Dealer Sales and Service Agreement when this agreement expires or is terminated, Dealer and Builder shall remain obligated to fulfill
their respective obligations under any Purchase Order previously accepted by Builder, unless otherwise agreed in writing by the parties.
Dealer's outstanding orders for Products which had not been previously accepted by Builder will be automatically canceled except
as provided in this paragraph b. Termination of this agreement will not release Dealer or Builder from the obligation to pay any amounts
owing the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Effect of Transactions After Termination</u> -
 Neither Builder's sale of Products to Dealer nor any other act by Builder or Dealer
 after termination of this agreement will be construed as a waiver of the termination.

13. <u>**No Agent or Legal Representative Status**</u> - This agreement does not make either party the agent or legal representative of the other for any purpose whatever, nor does it grant either party any authority to assume or to create any obligation on behalf of or in the name of the other. Neither party owes the other any fiduciary obligation.

14. <u>**Dealer's Responsibility for Its Operations**</u> - Except as provided otherwise in this agreement, Builder has no liability in connection with the establishment or conduct of the Dealership Operations, and Dealer will be solely responsible for all expenditures, liabilities, and obligations incurred or assumed by Dealer in connection with Dealer's responsibilities under this agreement. Dealer shall have the status of an independent contractor with respect to Builder, and this agreement shall be interpreted accordingly. Builder shall not be liable or responsible to customer or any other parties whatsoever, including Dealer, Dealer's employees, or agents, for the acts, omissions, and representations of Dealer, its employees, or agents, and Dealer agrees to, indemnify, defend, and save harmless Builder from any and all liability whatsoever, to customers and other parties, whether in tort or contract, and all claims, demands, suits, actions, costs, and expenses therefrom, with respect to such acts, omissions, or representations under this agreement. Dealer further agrees to defend, indemnify, and save harmless Builder from and against any and all personal injuries, including death at any time resulting from such injuries, to Dealer, its employees, agents, or servants, or damage to the tangible property of others. All sales expenses incurred by Dealer pursuant to this agreement, including telephone, telecopy, and other communications from Dealer to Builder, shall be at the expense of, and shall be borne by Dealer.

15. <u>**Compliance with Laws and Regulations**</u> - Dealer shall strictly comply with and obey all federal, state and local 1aws and ordinances and all governmental regulations affecting or related to its business and Builder's Products. Dealer shall at all times abide by Builder's regulations and procedures governing relationships with Builder and among Builder's dealers, including, without limitation, those relating to registration of the names Builder's potential customers with Builder.

16.<u>**Taxes**</u> - Dealer will pay all local, state, federal, or other applicable taxes and file required tax returns related to its Dealership Operations and will hold Builder harmless from any claims or demands made by any taxing authority with respect to it.

17. <u>**Insurance**</u> - Dealer shall procure and maintain in full force and effect insurance policies to adequately protect Dealer and Dealer Operations and in the event Builder provides Dealer with floor plan financing, then Builder as insured(s) against (i) any loss, liability, claim, damage, action and expense whatsoever from personal and/or bodily injury, death, property damage or otherwise, and (ii) damage, loss or destruction to Dealer's facilities and prope1ty, including Builder's Products, arising or occurring in connection with the business of Dealer and Dealer Operations including but not being limited to the advertising and sale by Dealer of Products and shall furnish evidence of such to Builder's upon request.

18. **Confidential Information** - The parties acknowledge that the Dealer now is, and may become familiar with, or acquire knowledge or information with respect to formulas, designs, drawings, processes, inventions, devices, marketing techniques or methods or concepts heretofore used or now being used or developed by Builder and information regarding Builder's Products, service, customers, suppliers, and employees and financial position (all of which is hereinafter collectively referred to as "confidential information"), which confidential information is acknowledged and understood by Dealer to be deemed confidential by Builder. Dealer shall not, at any time hereinafter, utilize, reveal, divulge, or make known, directly or indirectly to any person, firm, corporation, or business entity (hereinafter collectively referred to as "third parties") any confidential information or use or cause or authorize any third parties to use any confidential information not developed by Dealer. Dealer shall, immediately upon the termination of this agreement at its expense, deliver to Builder all technical data, worksheets, drawings, memoranda, customer and supplier lists and all other documents and information in Dealer's possession or under its control which relate to the business of Builder and any confidential information.

19. Indemnification by Builder - Builder will assume the defense of Dealer and indemnify Dealer against any judgment for monetary damages, less any offset recovered by Dealer, in any lawsuit naming Dealer as a defendant relating to any Product that has not been altered by or for Dealer when the lawsuit concerns:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Breach of the Builder warranty related to the Product, bodily injury or property damage claimed to have been caused solely by a defect in the design, manufacture, or assembly of a Product by Builder (other than a defect which should have been detected by Dealer in a reasonable inspection of the Product);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Failure of the Product to conform to the description set forth in advertisements or product brochures distributed by Builder because of changes in standard equipment or material component parts unless Dealer received notice of the changes prior to retail delivery of the affected Product by Dealer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Any substantial damage to a Product purchased by Dealer from Builder which has been repaired by Builder unless Dealer has been notified of the repair in writing prior to retail delivery of the affected Product.

If Builder reasonably concludes that allegations other than those set forth in subparagraphs 1 through 3 above are being pursued in the lawsuit, Builder shall have the right to decline to accept the defense or indemnify Dealer or, after accepting the defense, to transfer the defense back to Dealer and withdraw its agreement to indemnify Dealer. The obligations assumed by Builder are limited to those specifically described in this Section and are conditioned on compliance by Dealer with the procedures described herein. This paragraph shall not affect any right either party may have to seek indemnification or contribution under any other contract or by law and such rights are expressly preserved.

20. <u>**Indemnification by Dealer**</u> - Dealer agrees to hold harmless and indemnify Builder against any damage, claim, action or suit for personal or bodily injury, death, property damage or otherwise, arising out of Dealer's actions or failures to act with respect to Builder's Products arising out of the conduct of Dealer's business. Dealer shall hire and pay for counsel selected and approved by both Dealer and Builder to assume the defense of any such demand, claim, action or suit brought against Builder and pay any and all damages assessed against or that are payable by Builder as a result of the final disposition of any such suit, provided Builder promptly notifies Dealer in writing of the commencement of any such suit or threat thereof. Notwithstanding the foregoing, Builder may be represented in any such suit by its own counsel. Dealer's obligation to hold harmless, indemnify and defend Builder under this paragraph shall in no event extend to any demands, claims, actions or suits to the extent that any such demands, claims, actions or suits arise out or are caused by the actions, non-actions, or breach of the Builder Warranty by Builder.

21. <u>**Force Majenre**</u> - If performance by Builder of any obligation hereunder is delayed, hindered, or prevented because of an Act of God or of a public enemy, acts of the Government of the United States or of any State or other political subdivision or any department or regulatory agency thereof, war, riot, fire, flood, explosion, typhoon, hurricane, earthquake, epidemic or quarantine, restrictions, strikes, slowdowns, lock-outs, labor disputes of any kind or labor shortages, freight embargo or delays of a supplier to Builder, or because of any similar even over which Builder has no control ("event of force majeure"), any non-performance or delay in performance by Builder as a result, directly or indirectly, of any event of force majeure shall not constitute a breach or failure of performance of this agreement by Builder.

22. <u>**Advertising**</u> - Dealer shall pay for and conduct an adequate advertising campaign at appropriate times within its territory to effectively generate interest, leads, and sales by its Dealership of Products, and finther agrees to comply with Builder's written advertising policies, methods, and procedures. Dealer further agrees that it shall submit any advertisements and promotional material to Builder for review and approval not later than 10 days prior to its intended use or publication, which approval shall not be unreasonably withheld.

23. <u>**Notices**</u> - Any notice required to be given by either party to the other in connection with this agreement will be in writing and delivered personally or by mail. Notices to Dealer will be directed to Dealer or its representatives at Dealer's principal place of business and notices by Dealer will be directed to Builder at the addresses set forth above.

24. <u>**No Implied Waivers**</u> -The failure of either party to require performance by the other party of any provision in this agreement will in no way affect the right to require such performance at any subsequent time; nor will the waiver by either party of a breach of any provision prevent the enforcement of any subsequent breach.

25. <u>**Assignment of Rights or Delegation of Duties**</u> - Except as provided in this agreement, this agreement, and the rights and obligations of Dealer in and under this agreement, are personal to Dealer and are not assignable in whole or in part without the prior, express, and written consent of Builder.

26. <u>**Accounts Payable**</u> - In addition to any right of set off provided by law, all monies or accounts due Dealer, if any, shall be considered net of indebtedness of Dealer to Builder and Builder may deduct any amounts due or to become due from Dealer to Builder or any amounts held by Builder from any sums or accounts due or to become due from Builder to Dealer.

27. <u>**Applicable Law**</u> - This agreement is governed by the laws of the State of Florida. Dealer further agrees that venue for any action arising from or in any way relating to this agreement whether in contract, tort or otherwise shall lie exclusively in either Pinellas or Lee County.

28. <u>**Sole Agreement of Parties**</u> - Except as otherwise provided in this agreement, Builder has made no promises to Dealer or any Dealer Operator or owner and there are no other agreements or understandings, either oral or in writing, between the parties affecting this agreement or relating to any of the subject matters covered by this agreement. Except as otherwise provided in this agreement, this agreement cancels and supersedes all previous agreements between the parties that relate to any matters covered here. No agreement between Builder and Dealer which relates to matters covered here, and no change in, addition to (except the filling in of blank lines), or erasure of any printed portion of this agreement, will be binding unless it is approved in a written agreement executed in accordance with this agreement.

29. <u>**New and Superseding Dealer Agreements**</u> - If a new and superseding form of Dealer agreement is offered by Builder to authorized Builder Dealers generally at any time prior to the expiration of the term of this agreement, Builder may terminate this agreement by prior written notice to Dealer, provided Builder offers Dealer a new agreement in the new and superseding form for a term of not less than the then unexpired term of this agreement. Any evaluation of the effectiveness of Dealer's performance of any of its responsibilities under this agreement may be reflected and considered together with any evaluation made of the effectiveness of Dealer's performance of similar responsibilities under any succeeding or new and superseding form of Dealer Agreement. Unless otherwise agreed in writing, the rights and obligations of Dealer that may otherwise become applicable on any termination or expiration of the term of this agreement shall not be applicable in the event of the execution by Builder and Dealer of any new or superseding Dealer Sales and Service Agreement and the matured rights and obligations of the parties shall continue under the new agreement. Dealer's performance under any prior agreement may be considered in an evaluation of Dealer's performance under this or any succeeding, agreement.

30. <u>**Alternative Dispute Resolution**</u> - Notwithstanding any provision herein to the contrary if a dispute arises out of or relates to this agreement, or the breach thereof, and if the dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Commercial Mediation Procedures before resorting to arbitration, litigation, or some other dispute resolution procedure. If mediation proves unsuccessful then any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be submitted to binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof, subject to paragraph 21, above.

---

| | | | |
|:---|:---|:---|:---|
| Dealer Owener | /s/ Jason Ruegg | Trond Schou, CEO: | /s/ Trond Schou |
|  | (Signature) |  | (Signature) |
| Dealer Owner | Jason Ruegg |  |  |
|  | (Print Name) |  |  |

---

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We hereby consent to the inclusion in this Registration Statement on Form S-1/A of our report dated July 7, 2025 relating to the combined financial statements of Off the Hook YS, Inc. and Affiliate's audit of the combined financial statements as of and for the years ended December 31, 2024 and 2023 and the reference to our firm under the caption "Experts" in the Registration Statement.

*/s/ M&K CPA's, PLLC*

The Woodlands, TX

August 8, 2025