FORM
OF AGREEMENT TO PROVIDE INSURANCE

    
      


      
        
          
            	
                    Principal

                    $4,500,000.00

                  	
                    Loan Date

                    12-16-2008

                  	
                    Maturity

                    04-30-2009

                  	
                    Loan No

                    70290

                  	
                    Call/Coll

                  	
                    Account

                    0000128524-01

                  	
                    Officer

                    322

                  	
                    Initials

                  
	
                    References
      in the boxes above are for Lender’s use only and do not limit the
      applicability of this document to any particular loan or
      item.  Any item above containing “* * *” has been omitted due to
      text length
limitations.

                  


          

        

      

    

    


    
      
        
          
            
              	
                      Borrower:

                    	
                      ART’S-WAY
      MANUFACTURING

                      COMPANY,
      INC. (TIN:  42-0920725)

                      5556
      HIGHWAY 9 WEST, BOX 288

                      ARMSTRONG,
      IA  50514

                    	 
      	
                      Lender:

                    	
                      WEST
      BANK

                      MAIN
      BANK

                      1601
      22ND STREET

                      WEST
      DES MOINES, IA  50265

                      (515)
      222-2300

                    
	
                      Grantor:

                    	
                      _____________________________

                    	 
      	 
      	 
      
	 	 	 	 	 


            

          

        

      

    

    
       

      INSURANCE
REQUIREMENTS.  Grantor, __________________ (“Grantor),
understands that insurance coverage is required in connection with the extending
of a loan or the providing of other financial accommodations to ART’S-WAY
MANUFACTURING COMPANY, INC. (“Borrower”) by Lender.  These
requirements are set forth in the security documents for the
loan.  The following minimum insurance coverages must be provided on
the following described collateral (the “Collateral”):

    

     

    
      	
               
      

            	
              Collateral:

            	
              All
      Inventory and Equipment.

            


    

    
      	
               
      

            	
              Type: All risks,
      including fire, theft and
liability.

            


    

    
      	
               
      

            	
              Amount:  Loan
      Amount.

            


    

    
      	
               
      

            	
              Basis:  Replacement
      value.

            


    

    
      	
               
      

            	
              Endorsements:  Lender
      loss payable clause with stipulation that coverage will not be cancelled
      or diminished without a minimum of 30 days prior written notice to
      Lender.

            


    

    
      	
               
      

            	
              Latest Delivery
      Date:  By the loan closing
  date.

            


    

    


    
      	
               
      

            	
              Collateral:

            	
              [REAL
      PROPERTY].

            


    

    
      	
               
      

            	
              Type:  Fire
      and extended coverage.

            


    

    
      	
               
      

            	
              Amount: Loan
      Amount

            


    

    
      	
               
      

            	
              Basis:  Replacement
      value.

            


    

    
      	
               
      

            	
              Endorsements:  Standard
      mortgagee’s clause with stipulation that coverage will not be cancelled or
      diminished without a minimum of 30 days prior written notice to Lender,
      and without disclaimer of the insurer’s liability for failure to give such
      notice.

            


    

    
      	
               
      

            	
              Latest Delivery
      Date:  By the loan closing
  date.

            


    

    


    INSURANCE
COMPANY.  Grantor may obtain insurance from any insurance
company Grantor may choose that is reasonably acceptable to
Lender.  Grantor understands that credit may not be denied solely
because insurance was not purchased through Lender.

     

    FLOOD
INSURANCE.  Flood insurance for the Collateral securing this
loan is described as follows:

     

    Real
Estate at ____________________________.

    Should
the Collateral at any time be deemed to be located in an area designated by the
Director of the Federal Emergency Management Agency as a special flood hazard
area.  Grantor agrees to obtain and maintain Federal Flood Insurance,
If available, for the full unpaid principal balance of the loan and any prior
liens on the property securing the loan, up to the maximum policy limits set
under the National Flood Insurance Program, or as otherwise required by Lender,
and to maintain such insurance for the term of the loan.  Flood
insurance may be purchased under the National Flood Insurance Program or from
private insurers.

     

    INSURANCE MAILING
ADDRESS.  All documents and other materials relating to
insurance for this loan should be mailed, delivered or directed to the following
address:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               

              Loan
      No:  70290

            	
              AGREEMENT
      TO PROVIDE INSURANCE

              (Continued)

            	
                

              Page
      2

            


    

    


    WEST
BANK

    P.O.
BOX 65020

    WEST
DES MOINES, IA 50265

     

    FAILURE TO PROVIDE
INSURANCE.  Grantor agrees to deliver to Lender, on the latest
delivery date stated above, proof of the required insurance as provided above,
with an effective date of December 16, 2008, or earlier.  Grantor
acknowledges and agrees that if Grantor fails to provide any required insurance
or fails to continue such insurance in force, Lender may do so at Grantor’s
expense as provided in the applicable security document.  The cost of
any such insurance, at the option of Lender, shall be added to the indebtedness
as provided in the security document.  GRANTOR ACKNOWLEDGES THAT IF
LENDER SO PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED
PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL UP TO AN AMOUNT EQUAL TO
THE LESSER OF (1) THE UNPAID BALANCE OF THE DEBT, EXCLUDING ANY UNEARNED FINANCE
CHARGES, OR (2) THE VALUE OF THE COLLATERAL; HOWEVER, GRANTOR’S EQUITY IN THE
COLLATERAL MAY NOT BE INSURED.  IN ADDITION, THE INSURANCE MAY NOT
PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET
THE REQUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS.

     

    AUTHORIZATION.  For
purposes of insurance coverage on the Collateral, Grantor authorizes Lender to
provide to any person (including any insurance agent or company) all information
Lender deems appropriate, whether regarding the Collateral, the loan or other
financial accommodations, or both.

     

    GRANTOR
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS AGREEMENT TO PROVIDE INSURANCE
AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.

     

    GRANTOR
ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE
INSURANCE AND AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED DECEMBER
16, 2008.

     

    
      
        
          
            
              
                	
                        GRANTOR:

                      
	  
      	  
      
	 
      	 
      
	
                        By:

                      	
                        COPY

                      
	 
      	
                        CARRIE
      L. MAJESKI,
PRESIDENT