Summary of 2009 Director Compensation Arrangements for Art’s-Way Manufacturing Co., Inc.

Summary

Art’s-Way Manufacturing Co., Inc. set director compensation for the 2009 fiscal year without a formal written plan. Directors received annual cash retainers ranging from $30,000 to $150,000, depending on their roles. Directors were also reimbursed for expenses related to board duties. Additionally, under the 2007 Non-Employee Directors’ Stock Option Plan, each director was granted options to purchase 2,000 shares of company stock annually at the time of the Annual Meeting of Stockholders.

EX-10.7 3 v175069_ex10-7.htm
Exhibit 10.7

Summary of Compensation Arrangements with Directors
2009 Fiscal Year

Art’s-Way Manufacturing Co., Inc.  (the “Company”) currently does not have a written Board compensation plan. For the 2009 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
 
Compensation during
Fiscal Year 2009
 
J. Ward McConnell, Jr.
Executive Chairman of the Board
  $ 150,000  
Marc H. McConnell
Executive Vice Chairman of the Board
  $ 58,000  
Thomas E. Buffamante
  $ 30,000  
David R. Castle
  $ 30,000  
Fred W. Krahmer
  $ 30,000  
James Lynch
  $ 30,000  
Douglas McClellan
  $ 30,000  

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.