BELL INDUSTRIES INC /NEW/
EXHIBIT 10.W
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<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.w</B>


<P align="right" style="font-size: 10pt"><IMG src="a07396a0739605.gif" alt="(IBM LOGO)">
<BR><B>IBM Credit LLC</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR><B>North
Castle Dr</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR><B>Armark, NY 10504</B>





<P align="left" style="font-size: 10pt">May&nbsp;11, 2004



<P align="left" style="font-size: 10pt">Mr.&nbsp;Mitchell Rosen<BR>
Bell Industries, Inc.<BR>
1960 East Grand Avenue, Suite&nbsp;560<BR>
El Segundo, CA 90245


<P align="left" style="font-size: 10pt">Dear Mr.&nbsp;Rosen



<P align="left" style="font-size: 10pt">IBM Credit LLC, formerly IBM Credit Corporation (&#147;IBM Credit&#148;) and Bell Industries, Inc.
(&#147;Bell Industries&#148;) are parties to that certain Amended and Restated Agreement for Wholesale
Financing (Security Agreement), dated July&nbsp;18, 2002 (as amended, modified or supplemented from
time to time, the &#147;Agreement&#148;).



<P align="left" style="font-size: 10pt">Capitalized terms used in this letter that are not otherwise defined shall have the meaning
ascribed thereto in the Agreement.



<P align="left" style="font-size: 10pt">IBM Credit has completed a financial review of Bell Industries. As we previously discussed and
after careful consideration, effective May&nbsp;20, 2004, IBM Credit has decided to reduce Bell
Industries&#146; credit line, as set forth in the Agreement, from Three Million Dollars ($3,000,000.00)
to One Million Dollars ($1,000,000.00). In addition, effective June&nbsp;1, 2004, IBM Credit has also
decided to modify the scheduled payment plan from 1 pay 30 to 1 pay 15. Depending upon the date of
each invoice, payments are due on the 5th, 15th, or 25th day of the month following your purchase.
There are no financing charges associated with this plan provided that payments are received by
IBM Credit during the 15&nbsp;day payment period as scheduled.



<P align="left" style="font-size: 10pt">Please sign below as your acknowledgment and agreement to the terms of this letter and mail the
original to the attention of Ms.&nbsp;Lisa Fitzpatrick at the above address on or prior to May&nbsp;19, 2004.



<P align="left" style="font-size: 10pt">If you have any questions regarding this information, please contact Richard Blatchford at (630)
568-1262.



<P align="left" style="font-size: 10pt">Sincerely,



<P align="left" style="font-size: 10pt"><IMG src="a07396a0739604.gif" alt="-s- Thomas Harahan"><BR>
Thomas Harahan<BR>
Manager of Credit


<P align="left" style="font-size: 10pt"><B>Acknowledged and Agreed to:</B>



<P align="left" style="font-size: 10pt"><U>Mitchell
Rosen&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5/12/04</U><BR>
(ADDRESSEE&#146;S
NAME)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date


<P align="left" style="font-size: 10pt"><U>VIP-Corporate Controller</U><BR>
(TITLE)



<P align="center" style="font-size: 10pt">
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