QUAINT OAK BANCORP INC

Stock Option and Stock Incentive Plans–** Stock Options**

In* May 2008,the shareholders of Quaint Oak Bancorp approved the adoption of the2008* Stock Option Plan (the “Option Plan”). The Option Plan expired* February 13, 2018,however, outstanding options granted in2013* remained valid and existing for the remainder of their10 year terms, until* May 2023.As described above under “Stock Incentive Plans – Share Awards”, the2013* Stock Incentive Plan approved by shareholders in* May 2013terminated March 13, 2023,however, the outstanding options granted in2018* remain exercisable until* May 2028,to the extent still outstanding. The2018* Stock Incentive Plan approved by shareholders in* May 2018covered a total of 155,000 shares, of which 116,250 * maybe stock options assuming all the restricted shares are awarded. In* May 2023,the shareholders of Quaint Oak Bancorp approved the adoption of the2023* Stock Incentive Plan. The2023 Stock Incentive Plan approved by shareholders in* May 2023covered a total of 175,000 shares, of which 131,250 * maybe stock options assuming all the restricted shares are awarded.

All incentive stock options issued under the Option Plan and the2013, 2018 and2023 Stock Incentive Plans are intended to comply with the requirements of Section422 of the Internal Revenue Code. Options will become vested and exercisable over afive year period and are generally exercisable for a period often years after the grant date.

As of* December 31, 2023,a total of 224,033 grants of stock options were outstanding under the2013,* 2018 and2023 Stock Incentive Plans and 36,000 stock options were available for future grant under the2023 Stock Incentive Plan, andnone under the2018 Stock Incentive Plan. Options will become vested and exercisable over afive year period and are generally exercisable for a period often years after the grant date.

A summary of option activity under the Company’s Option Plan and2013, 2018 and2023 Stock Incentive Plans for the year ended* December 31, 2023and changes during the year ended December 31, 2023*is as follows:

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Quaint Oak Bancorp, Inc.