<PAGE>
                                                                  EXHIBIT 4.1(e)


              THIS DOCUMENT IS SUBJECT TO A CONFIDENTIAL TREATMENT
                      REQUEST PURSUANT TO RULE 24B-2 UNDER
                 THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

                            AMENDMENT AGREEMENT NO. 5
                               TO CREDIT AGREEMENT

         THIS AMENDMENT AGREEMENT (this "Amendment Agreement") is made and
entered into as of this 28th day of January 2002, by and among INSTEEL
INDUSTRIES, INC., a North Carolina corporation (herein called the "Borrower"),
BANK OF AMERICA, N.A., a national banking association (the "Agent"), as Agent
for the lenders (the "Lenders") party to the Credit Agreement dated January 31,
2000 as amended by the Amendment Agreement No. 1 to Credit Agreement dated
January 12, 2001, by the Supplement to Amendment Agreement No. 1 to the Credit
Agreement effective January 12, 2001, by the Amendment Agreement No. 2 to Credit
Agreement dated May 21, 2001, by Amendment Agreement No. 3 to Credit Agreement
dated August 9, 2001 and by Amendment Agreement No. 4 to Credit Agreement dated
November 16, 2001 (collectively the "Agreement"), and the Equity Appreciation
Rights Agreement dated May 21, 2001 (the "EAR Agreement"), among the Borrower,
the Agent, and the Lenders, and the UNDERSIGNED LENDERS.


                              W I T N E S S E T H:

         WHEREAS, the parties hereto have entered into the Agreement pursuant to
which the Lenders have agreed to make loans to the Borrower as evidenced by the
Notes (as defined in the Agreement) and to issue Letters of Credit for the
benefit of the Borrower; and

         WHEREAS, as a condition to the making of the loans pursuant to the
Agreement the Lenders have required that the Subsidiaries of the Borrower
guarantee payment of all Obligations of the Borrower arising under the
Agreement; and

         WHEREAS, the Borrower has requested that the Lenders further amend the
Agreement and amend the EAR Agreement in the manner described herein; and

         WHEREAS, the Lenders are willing to further amend the Agreement and
amend the EAR Agreement subject to the terms and conditions set forth herein;

         NOW, THEREFORE, the Borrower, the Agent and the Lenders do hereby agree
as follows:

         1.       Definitions. The term "Agreement" as used herein and in the
Loan Documents (as defined in the Agreement) shall mean the Agreement as
hereinafter amended and modified. The term "EAR Agreement" as used herein and in
the Loan Documents (as defined in the Agreement) shall mean the EAR Agreement as
hereinafter amended and modified. Unless the context otherwise requires, other
than paragraph 6, all terms used herein without definition shall have the
definition provided therefor in the Agreement. Unless the context requires
otherwise, all terms used herein in paragraph 6 without definition shall have
the definition provided therefor in the EAR Agreement.


<PAGE>

         2.       Amendment to Agreement. Subject to the conditions set forth
herein, the Agreement is hereby amended, effective as of the date of this
Amendment No. 5 as follows:

                  (a)      Section 1.01 is hereby amended by adding the
         following new definition thereto in the appropriate alphabetical order:

                           "Amendment No. 5" means Amendment Agreement No. 5 to
                  Credit Agreement and Equity Appreciation Rights Agreement
                  which Amendment No. 5 is dated January 28, 2002;

                  (b)      The definition of "Applicable Margin" in Section 1.1
         is hereby further amended in its entirety so that as amended it shall
         read as follows:

                           "`Applicable Margin' means for each of the periods
                  set forth below that percent per annum set forth opposite each
                  such period:

<TABLE>
<CAPTION>
                                                                 Applicable
                           "Period"                                Margin
                           --------                              ----------
                <S>                                              <C>
                January 1, 2002 through March 31, 2002              3.25%

                April 1, 2002 through June 30, 2002                 3.75%

                July 1, 2002 through September 30, 2002             4.00%

                October 1, 2002 through January 15, 2003            4.25%"
</TABLE>


                  (c)      The definition of "Stated Termination Date" in
         Section 1.1 is hereby further amended in its entirety so that as
         amended it shall read as follows:

                           "`Stated Termination Date' means January 15, 2003."

                  (d)      The definition of "Term Loan Maturity Date" in
         Section 1.1 is hereby amended in its entirety so that as amended it
         shall read as follows:

                           "`Term Loan Maturity Date' means January 15, 2003."

                  (e)      The definition of "Total Revolving Credit Commitment"
         in Section 1.1 is hereby amended in its entirety so that as amended it
         shall read as follows:

                           "`Total Revolving Credit Commitment' means for the
                  period from the date of Amendment No. 4 through January 15,
                  2003 $50,000,000, subject to further reduction from time to
                  time in accordance with Section 2.2(e)."

                  (f)      Section 2.1(c) is hereby amended in its entirety so
         that as amended it shall read as follows:

                           "(c) Payment of Principal. The principal amount of
                  the Term Loan shall be repaid in monthly installments on the
                  dates and in the amounts set forth below:


                                       2
<PAGE>

<TABLE>
<CAPTION>

                           "Date                              Amount
                            ----                              ------
                           <S>                                <C>
                           April 30, 2002                     $300,000
                           May 31, 2002                       $300,000
                           June 30, 2002                      $300,000
                           July 31, 2002                      $700,000
                           August 31, 2002                    $700,000
                           September 30, 2002                 $700,000
                           October 31, 2002                   $700,000
                           November 30, 2002                  $700,000
                           December 31, 2002                  $700,000

</TABLE>
                           provided, however, that the entire amount of Term
                           Loan Outstandings shall be due and payable in full on
                           the Term Loan Termination Date."

                  (g)      The table in Section 10.1(b) is amended in its
         entirety so that as amended it shall read as follows:

<TABLE>
<CAPTION>
                                       "Period                            Amount
                                       -------                            ------
                           <S>                                            <C>
                           1st fiscal quarter of Fiscal Year 2002          $[*]
                           2nd fiscal quarter of Fiscal Year 2002          $[*]
                           3rd fiscal quarter of Fiscal Year 2002          $[*]
                           4th fiscal quarter of Fiscal Year 2002          $[*]
                           1st fiscal quarter of Fiscal Year 2003          $[*]"
</TABLE>

         3.       Subsidiary Consents. Each Subsidiary of the Borrower that has
delivered a Guaranty to the Agent has joined in the execution of this Amendment
Agreement for the purpose of (i) agreeing to the amendment to the Agreement and
(ii) confirming its guarantee of payment of all the Obligations.

         4.       Representations and Warranties. The Borrower hereby represents
and warrants that:

                  (a)      The representations and warranties made by Borrower
         in Article VIII of the Agreement are true on and as of the date hereof
         except that the financial statements referred to in Section 8.6(a)
         shall be those most recently furnished to each Lender pursuant to
         Section 9.1;

                  (b)      There has been no material adverse change in the
         condition, financial or otherwise, of the Borrower and its Subsidiaries
         since the date of the most recent financial reports of the Borrower
         received by each Lender under Section 9.1 thereof, other than changes
         in the ordinary course of business, none of which has been a material
         adverse change;


[*]      Confidential portion has been omitted and filed separately with the
         Commission.


                                       3
<PAGE>
                  (c)      The business and properties of the Borrower and its
         Subsidiaries are not and have not been adversely affected in any
         substantial way as the result of any fire, explosion, earthquake,
         accident, strike, lockout, combination of workers, flood, embargo,
         riot, activities of armed forces, war or acts of God or the public
         enemy, or cancellation or loss of any major contracts; and

                  (d)      After giving effect to this Amendment Agreement
         (including the waivers by the Lenders set forth herein), no event has
         occurred and no condition exists which, upon the consummation of the
         transaction contemplated hereby, constitutes a Default or an Event of
         Default on the part of the Borrower under the Agreement, the Notes or
         any other Loan Document either immediately or with the lapse of time or
         the giving of notice, or both.

         5.       Deferral of Amendment Fee under Amendment No. 2. The
provisions regarding the Amendment Fee as set forth in paragraph 7 of Amendment
No. 2 are modified as follows: (i) payment of $[*] is due on each of January 31,
2002, April 30, 2002, July 31, 2002 and October 15, 2002 and (ii) payment of
$[*] is due on January 15, 2003. In the event all Obligations have been paid in
full prior to the date each payment shall be due, payment of such fees shall be
waived.

         6.       Amendment to EAR Agreement. Subject to the conditions set
forth herein, the EAR Agreement is hereby amended, effective as of the date of
this Amendment No. 5 as follows:

                  (a)      Section 1.01 is hereby amended by adding the
         following new definition thereto in the appropriate alphabetical order:

                           "Amendment No. 5" means Amendment Agreement No. 5 to
                  Credit Agreement and Equity Appreciation Rights Agreement
                  which Amendment No. 5 is dated January 28, 2002;"

                  (b)      The definition of "Exercise Period" in Section 1.01
         is hereby amended in its entirety so that as amended it shall read as
         follows:

                           "`Exercise Period" means the period (a) beginning and
                  ending in the case of Section 2.02(b) and (c), upon payment in
                  full of all the Loans or (b) beginning on the earlier to occur
                  of (i) October 15, 2002 or (ii) occurrence of an Event of
                  Default under the Credit Agreement and ending on October 15,
                  2004;"

                  (c)      Section 2.02(b) is hereby amended in its entirety so
         that as amended it shall read as follows:

                           "(b) In the event all Obligations (as defined in the
                  Credit Agreement) have been paid in full by July 15, 2002 and
                  the Facility Termination Date (as



[*]      Confidential portion has been omitted and filed separately with the
         Commission.


                                       4
<PAGE>

                  defined in the Credit Agreement) shall have occurred by July
                  15, 2002, the Rights Fee shall be $[*];"

                  (d)      Section 2.02(c) is hereby amended in its entirety so
         that as amended it shall read as follows:

                           "(c) In the event all Obligations (as defined in the
                  Credit Agreement) have not been paid in full by July 15, 2002
                  but are paid in full by October 15, 2002 and the Facility
                  Termination Date (as defined in the Credit Agreement) shall
                  have occurred by October 15, 2002, the Rights Fee shall be in
                  a maximum amount of $[*] but in no event less than the greater
                  of:

                           (i)       [*]; or
                           (ii)     $[*]; and

         7.       Conditions. This Amendment Agreement shall become effective
upon the Borrower delivering or causing to be delivered to the Agent the
following:

                           (i)      five (5) counterparts of this Amendment
                  Agreement duly executed by the Borrower, the Agent and the
                  Required Lenders and consented to by each of the Subsidiaries;

                           (ii)     copy of resolutions adopted by the Board of
                  Directors of the Borrower and each Guarantor approving this
                  Amendment Agreement and authorizing its execution certified by
                  the Secretary or Assistant Secretary to be a true and correct
                  copy duly adopted; and

                           (iii)    all other fees and expenses due in
                  connection with this Amendment Agreement;

         8.       Acknowledgment; Release. The Borrower and the Guarantors
acknowledge that they have no existing defense, counterclaim, offset,
cross-complaint, claim or demand of any kind or nature whatsoever that can be
asserted to reduce or eliminate all or any part of any of their respective
liability to pay the full indebtedness outstanding under the terms of the
Agreement and any other Loan Documents which evidence, guaranty or secure the
Obligations. The Borrower and the Guarantors hereby release and forever
discharge the Agent, the Lenders and all of their officers, directors,
employees, attorneys, consultants and agents from any and all actions, causes of
action, debts, dues, claims, demands, liabilities and obligations of every kind
and nature, both in law and in equity, known or unknown, whether matured or
unmatured, absolute or contingent.

         9.       Costs and Expenses. The Borrower agrees to pay all costs and
expenses associated with the preparation, due diligence, administration and
enforcement of all documentation executed in connection with the Amendment
Agreement, including without


[*]      Confidential portion has been omitted and filed separately with the
         Commission.


                                       5
<PAGE>
limitation, the legal fees and out-of-pocket expenses of counsel to the Agent.
The Borrower also agrees to pay the expenses of the Agent and the Lenders in
connection with Collateral review, field audits and retention of consultants.

         10.      Entire Agreement. This Amendment Agreement sets forth the
entire understanding and agreement of the parties hereto in relation to the
subject matter hereof and supersedes any prior negotiations and agreements among
the parties relative to such subject matter. No promise, conditions,
representation or warranty, express or implied, not herein set forth shall bind
any party hereto, and no one of them has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except
as in this Amendment Agreement otherwise expressly stated, no representations,
warranties or commitments, express or implied, have been made by any other party
to the other. None of the terms or conditions of this Amendment Agreement may be
changed, modified, waived or canceled orally or otherwise, except by writing, in
the manner provided in the Agreement, specifying such change, modification,
waiver or cancellation of such terms or conditions, or of any proceeding or
succeeding breach thereof.

         11.      Full Force and Effect of Agreement. Except as hereby
specifically amended, modified or supplemented, the Agreement and all of the
other Loan Documents are hereby confirmed and ratified in all respects and shall
remain in full force and effect according to their respective terms.


                  [Remainder of page intentionally left blank.]


                                       6
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment
Agreement to be duly executed by their duly authorized officers, all as of the
day and year first above written.


                                               BORROWER:

                                               INSTEEL INDUSTRIES, INC.

WITNESS:


/s/ Gary D. Kniskern                           By:      /s/ H.O. Woltz III
--------------------------------------            -----------------------------
Print Name:       Gary D. Kniskern
                  --------------------         Name:        H.O. Woltz III
                                                    ---------------------------
/s/ Michael C. Gazmarian
    ----------------------------------
Print Name:       Michael C. Gazmarian         Title:       President & CEO
                  --------------------               --------------------------


                                       7




<PAGE>

                                         GUARANTORS:

                                         INSTEEL WIRE PRODUCTS COMPANY
                                         INTERCONTINENTAL METALS CORPORATION
                                         FLORIDA WIRE AND CABLE, INC.
WITNESS:


/s/ Gary D. Kniskern                     By:      /s/ H.O. Woltz III
------------------------------------        -----------------------------------
Print Name: Gary D. Kniskern
            ------------------------     Name:        H.O. Woltz III
                                              ---------------------------------
/s/ Michael C. Gazmarian
------------------------------------
Print Name: Michael C. Gazmarian         Title:       President & CEO
            ------------------------           --------------------------------


                                       8


<PAGE>


                                 BANK OF AMERICA, N.A., as Agent for the Lenders



                                 By:    /s/ Michael J. Fey
                                    -------------------------------------------
                                 Name:      Michael J. Fey
                                    -------------------------------------------
                                 Title:     Vice President
                                    -------------------------------------------




                                 BANK OF AMERICA, N.A., as a Lender



                                 By: /s/ Michael J. Fey
                                    -------------------------------------------
                                 Name:   Michael J. Fey
                                    -------------------------------------------
                                 Title:  Vice President
                                    -------------------------------------------


                                       9




<PAGE>
                                 BRANCH BANKING AND TRUST COMPANY





                                 By:    /s/ Richard  C.F. Spencer
                                    -------------------------------------------
                                 Name:      Richard C.F. Spencer
                                      -----------------------------------------
                                 Title:     Vice President
                                       ----------------------------------------


                                       10





<PAGE>
                                 FIRST UNION NATIONAL BANK



                                 By:     /s/Nancy  S. Jones
                                    -------------------------------------------
                                 Name:       Nancy S. Jones
                                      -----------------------------------------
                                 Title:      Vice President
                                       ----------------------------------------


                                       11

<PAGE>
                                  PNC BANK, National Association,
                                           Attorney-in-fact for

                                  NATIONAL BANK OF CANADA



                                 By:     /s/ Jay Stein
                                    -------------------------------------------
                                 Name:       Jay Stein
                                        ---------------------------------------
                                 Title:      Vice President
                                        ---------------------------------------


                                       12