QUAINT OAK BANCORP, INC.

Stock Incentive Plans–** Share Awards (Continued)**

In* May 2023,the shareholders of Quaint Oak Bancorp approved the adoption of the2023* Stock Incentive Plan (the*“2023* Stock Incentive Plan”). The2023 Stock Incentive Plan approved by shareholders in* May 2023covered a total of 175,000 shares, of which 43,750, or 25%, may*be restricted stock awards, for a balance of 131,250 stock options assuming all the restricted shares are awarded.

As of* December 31, 2024a total of 36,000 share awards were unvested under the2018* and2023 Stock Incentive Plan and up to 10,500 share awards were available for future grant under the2023 Stock Incentive Plan andnone under the2018 Stock Incentive Plan. The2018 and2023 Stock Incentive Plan share awards have vesting periods offive years.

A summary of share award activity under the Company’s2018 and2023 Stock Incentive Plans as of* December 31, 2023and changes during the year ended December 31, 2024*is as follows:

Compensation expense on the restricted stock awards is recognized ratably over thefive year vesting period in an amount which is equal to the fair value of the common stock at the date of grant. During the years ended* December 31, 2024and2023* the Company recognized approximately $162,000 and $155,000 of compensation expense, respectively. During the years ended* December 31, 2024and2023,* the Company recognized a tax benefit of approximately $34,000 and $33,000, respectively. As of* December 31, 2024,*approximately $547,000 in additional compensation expense will be recognized over the remaining service period of approximately 3.4 years.