GENERAL RELEASE

1.1.

In exchange for the Severance Payment, Special Long-Term Incentive Program Treatment, Company-Subsidized Health Coverage, and Career Transition Services (together, the “Special Severance Benefits”) described in and made available to Executive pursuant to the terms of the September 25, 2009 letter to Executive from Malcolm W. Anderson (the “Agreement”), Executive, on behalf of herself, her heirs, beneficiaries, agents, representatives and assigns, agrees to release and hereby does release Smith International, Inc., its parents, subsidiaries, affiliates, and related entities, and its and their compensation and benefits plans (including trustees, fiduciaries, and administrators of those plans), employees, officers, directors, representatives, successors, assigns and agents (collectively, hereinafter “Smith” or the “Company”), from all claims, demands, actions or liabilities of every kind including, but not limited to, those that are related to Executive’s employment with Smith, the termination of that employment, severance payments, bonus payments, incentive or equity compensation, claims for payments or benefits under the Amended and Restated Change-of-Control Employment Agreement or any other agreement with the Company (whether written or oral), and claims for attorneys’ fees. Executive also agrees that this Release covers, but is not limited to, claims arising from the Age Discrimination in Employment Act of 1967, as amended, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, as amended, and any other federal, state or local law dealing with discrimination in employment, harassment, or retaliation, including, but not limited to, discrimination based on sex, sexual orientation, race, national origin, religion, disability, veteran status or age, and claims for attorneys’ fees, provided, however, that the foregoing release by Executive shall not apply to claims arising under the Agreement. This Release covers both claims that Executive knows about and those that Executive may not know about which have accrued by the time Executive executes this Release, except as expressly provided to the contrary within this Release.

1.2.

This Release does not prevent Executive from enforcing non-forfeitable rights to Executive’s accrued benefits under any employee benefit plan within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, as of the date of termination of Executive’s employment with Smith International, Inc., which are not released hereby but survive unaffected by this document.

1.3.

The Age Discrimination in Employment Act prohibits employment discrimination based on age and is enforced by the U.S. Equal Employment Opportunity Commission (“EEOC”). Other federal laws prohibit discrimination in employment based on sex, race, color, national origin, religion, disability, or veteran status. These laws are enforced by the EEOC and the U.S. Department of Labor (“DOL”). There are also state and local laws prohibiting discrimination, which are enforced by state !

2.

Release by the Company