THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Lawson Products, Inc. (LAWS)

4/10/2006 Proxy Information

Ronald B. Port, M.D. is the son of Sidney L. Port.

Robert J. Washlow is the son-in-law of Sidney L. Port.

Superior and Sedgwick Associates, an Illinois limited partnership (the “Partnership”), entered into a Real Estate Sales Agreement, dated October 24, 2005 (the “Real Estate Sale Agreement”), with the City of Chicago pursuant to an option to purchase certain real estate described therein held by the City of Chicago. The Company was the limited partner of the Partnership and as such owned approximately 98.5% of the total Partnership interests. The real property was the sole asset of the Partnership. Robert J. Washlow, Chairman of the Board and Chief Executive Officer of the Company, was the general partner of the Partnership and owned approximately 1.5% of the total Partnership interests. The partnership was formed in 1984, prior to Mr. Washlow becoming an executive officer of the Company. Pursuant to the Agreement of Limited Partnership dated November 1, 1984 governing the Partnership (the “Partnership Agreement”), the general partner was entitled to be paid reasonable fees as compensation for managing the affairs of the Partnership. The fees were to be comparable to those charged by real estate management firms in the Chicago metropolitan area. The Company’s Board of Directors established a special committee of disinterested directors to consider the management fees to be paid pursuant to the Partnership Agreement. The special committee engaged advisors of its own selection to assist in its evaluation of the management fees, and on October 24, 2005 the special committee concluded that the appropriate management fees pursuant to the Partnership Agreement were $2,000,000, to be paid by the Partnership to Mr. Washlow on October 31, 2005. On October 24, 2005, the audit committee of the board of directors considered and approved the management fees. Also on October 24, 2005, the management fees approved by the special committee were ratified by the Board of Directors, with Mr. Washlow abstaining. In addition, Mr. Washlow also received net cash proceeds of approximately $270,500 due to his 1.5% partnership interest. The Company received net cash proceeds of approximately $15,707,000 and realized a net gain of $12,189,000 due to the 98.5% partnership interest. The Partnership was dissolved on December 22, 2005.

4/8/2005 Proxy Information

Ronald B. Port, M.D. is the son of Sidney L. Port.

Robert J. Washlow is the son-in-law of Sidney L. Port.

Sidney L. Port founded Lawson Products, Inc. in 1952 and served as its Chairman and Chief Executive Officer from 1952 to 1970.

4/8/2004 Proxy Information

Bernard Kalish is a retired Chairman and Chief Executive Officer of Lawson Products, Inc.

Robert J. Washlow, the Chairman of the Board and Chief Executive Officer, beneficially owns 48.9% of an Illinois limited liability company which owns and operates the Hilton Lisle/Naperville Hotel in Lisle, Illinois (the "Lisle Hotel"). Mr. Washlow also beneficially owns 25% of a separate Illinois limited liability company which owns and operates the Northbrook Hilton in Northbrook, Illinois (the "Northbrook Hotel"). The hotels are from time to time used by the Company among other hotels, for Company functions and for its out-of-town employees visiting the Company on business. During the last fiscal year, the Company paid the Lisle Hotel approximately $111,000 and the Northbrook Hotel approximately $150,000.

4/11/2003 Proxy Information

Mr. Melzer is a private consultant of Lawson Products, Inc.