We discuss a model of a closed quantum evolution of two qubits where the joint Hamiltonian is so chosen such that one of the qubits acts as a bath and thermalizes the other qubit which is acting as the system. The corresponding exact master equation for the system is derived. Interestingly, for a specific choice of parameters the master equation takes the Gorini-Kossakowski-Lindblad-Sudarshan (GKLS) form, with constant coefficients representing pumping and damping of a single qubit system. Based on this model we construct an Otto cycle connected to a single qubit bath and study its thermodynamic properties. Our analysis goes beyond the conventional weak coupling scenario and illustrates the effects of finite baths, including non-Markovianity. We find closed form expressions for efficiency (coefficient of performance), power (cooling power) for the heat engine regime (refrigerator regime), and for different modifications of the joint Hamiltonian.