My next door neighbor has a custom cabinet making shop and I can get the smaller left over pieces of any exotic woods he uses in the cabinets. This wood is sawn in board form.
My question is, is the wood from straight sawn boards suitable for knife handles? or does the wood have to be sawn or split a certain way to get the grain running in a special direction.

Absoloutly , I have collected "drops" and scraps from local woodworkers for years. Just avoid the narrow end-grain peices as they tend to split. You can really get some good stuff from cabinet shops , just remember that some exotic woods like purpleheart and ebony have somewhat toxic oils that could be released when sanded or machined so wear a mask and don't over heat exotic woods.