THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Smith & Wesson Holding Corporation (SWB)

8/24/2005 Proxy Information

Mr. Saltz served as Chairman and Chief Executive Officer of Smith & Wesson Holding Corporation from February 1998 through December 5, 2003.

Mr. Melby served as President and Chief Operating Officer of Smith & Wesson Holding Corporation from September 2002 through December 5, 2003.

We and Robert L. Scott, a director of our company, are parties to a one-year consulting agreement dated as of February 1, 2005 under which Mr. Scott has agreed to provide consulting services relating to sales, marketing, and special projects. The agreement provides for compensation of $1,500 per month plus a fee of $1,000 for each day that Mr. Scott travels on our business at the request of our Chief Executive Officer.

In addition, our company has entered into indemnification agreements with each of its directors and executive officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Nevada law, for certain liabilities to which they may become subject as a result of their affiliation with our company.