Vessel #1 was traveling south in Barnegat Bay in the area of Forked River.  The passenger was seated in front of the operator. Operator #1 observed water in the boat and reduced throttle to idle. Operator # 1 and passenger #1 donned PFDs. The vessel continued to take on water and capsized.  Operator and passenger both entered the water and were rescued by a passing vessel.  
 
Sea tow was contacted and while attempting to recover the vessel the captain observed a crack in the hull.  It appears that a small rack had expanded possibly due to choppy conditions causing the vessel to tae on water.
Lacey Twp