Exhibit 10.5

Summary of Compensation Arrangements with Directors
2008 Fiscal Year

Art’s-Way Manufacturing Co., Inc.  (the “Company”) currently does not have a
written Board compensation plan. For the 2008 fiscal year, the Board determined
that each of the Company’s directors would receive a cash retainer fee for his
service, paid as follows:

Director Name
 
First Quarter
(December-
February)
   
Second
Quarter
(March-
May)
   
Third
Quarter
(June-
August)
   
Fourth
Quarter
(September-
November)
 
Thomas E. Buffamante
  $ 5,000     $ 5,833     $ 7,500     $ 7,500  
David R. Castle
  $ 5,000     $ 5,833     $ 7,500     $ 7,500  
Fred W. Krahmer
  $ 5,000     $ 5,833     $ 7,500     $ 7,500  
James Lynch
  $ 5,000     $ 5,833     $ 7,500     $ 7,500  
Douglas McClellan
  $ 5,000     $ 5,833     $ 7,500     $ 7,500  

Director Name
 
December
   
Monthly,
January
through
April
   
Monthly,
May
through
November
 
J. Ward McConnell, Jr.
Executive Chairman of the Board
  $ 7,000     $ 12,500     $ 12,500  
Marc H. McConnell
Executive Vice Chairman of the Board
  $ 1,667     $ 4,000     $ 4,833  

The Company also reimburses directors for out-of-pocket expenses related to
their attendance at board meetings and performance of other services as Board
members.

In addition, pursuant to the Company’s 2007 Non-Employee Directors’ Stock Option
Plan, each director is automatically granted non-qualified stock options to
purchase 2,000 (post-split) shares of the Company’s common stock each year on
the date of the Annual Meeting of Stockholders.

 
 

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