EXHIBIT 10.32

 

SUMMARY OF COMPENSATION ARRANGEMENTS FOR

NON-EMPLOYEE DIRECTORS

 

The following is a summary of the standard compensation arrangements for the
non-employee members of the Board of Directors of SM Energy Company (the
“Company”) for 2010.

 

For service for the fiscal period from May 26, 2010, through approximately
May 25, 2011, the total annual target base compensation for each non-employee
director is $160,000, excluding committee and attendance fees.  As described
more fully below, the actual value of compensation may be higher or lower
depending on the results of the restricted stock component of director
compensation.  Primary director compensation is in the form of stock grants and
is fully described below.  The cash component of the director compensation for
non-employee directors is as follows:

 

·                  Annual cash retainer of $25,000 for committee and board
meeting fees; and

·                  Reimbursement for expenses incurred in attending Board and
committee meetings.

 

The non-executive Chairman of the Board receives an additional $75,000 retainer
for his service as Chairman, making his total annual compensation $235,000. 
This base compensation is in the form of restricted stock.  The market price on
the date of grant determines the number of shares that are issued to the
director.  The grants vest over the one-year Board service period and carry a
one-year holding period restriction following the expiration of the vesting
period as imposed by the Company.

 

The committee chairs will receive the following cash payments in recognition of
the additional workload of their respective committee assignments.  These
amounts are to be paid at the beginning of the annual service period.

 

1.             Audit Committee - $15,000

 

--------------------------------------------------------------------------------

 

2.             Compensation Committee - $15,000

 

3.             Nominating and Corporate Governance Committee - $7,500

 

2

--------------------------------------------------------------------------------