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
                  
                  
                  $
                  7,500David
      R. Castle
                  
                  $
                  5,000
                  
                  
                  $
                  5,833
                  
                  
                  $
                  7,500
                  
                  
                  $
                  7,500Fred
      W. Krahmer
                  
                  $
                  5,000
                  
                  
                  $
                  5,833
                  
                  
                  $
                  7,500
                  
                  
                  $
                  7,500James
      Lynch
                  
                  $
                  5,000
                  
                  
                  $
                  5,833
                  
                  
                  $
                  7,500
                  
                  
                  $
                  7,500Douglas
      McClellan
                  
                  $
                  5,000
                  
                  
                  $
                  5,833
                  
                  
                  $
                  7,500
                  
                  
                  $
                  7,500





Director Name
                      
                      December
                      
                      
                      Monthly,
                        January
                        through
                        April
                      
                      
                      Monthly,
                        May
                        through
                        NovemberJ.
      Ward McConnell, Jr.
                        Executive
      Chairman of the Board
                      
                      $
                      7,000
                      
                      
                      $
                      12,500
                      
                      
                      $
                      12,500Marc
      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.