Document:

<PAGE>   1
                                                                    EXHIBIT 4.25

                       TENTH AMENDMENT TO CREDIT AGREEMENT

         THIS TENTH AMENDMENT TO CREDIT AGREEMENT (this "Tenth Amendment") is
made and entered into as of December 15, 2000 among DANKA BUSINESS SYSTEMS PLC,
a limited liability company incorporated in England and Wales (Registered Number
1101386) ("Danka PLC"), DANKALUX SARL & CO. SCA, a Luxembourg company
("Dankalux"), and DANKA HOLDING COMPANY, a Delaware corporation ("Danka
Holding") (Danka PLC, Dankalux and Danka Holding are herein each a "Company" and
collectively the "Companies"), AMERICAN BUSINESS CREDIT CORPORATION, AMERITREND
CORPORATION, CORPORATE CONSULTING GROUP, INC., D.I. INVESTMENT MANAGEMENT, INC.,
DANKA IMAGING DISTRIBUTION, INC., DANKA MANAGEMENT COMPANY, INC., DANKA OFFICE
IMAGING COMPANY, DYNAMIC BUSINESS SYSTEMS, INC., HERMAN ENTERPRISES, INC. OF
SOUTH FLORIDA, QUALITY BUSINESS, INC. (collectively with Danka Holding, the
"Grantors"), the entities listed on the signature pages hereof as International
Swing Line Borrowers (collectively the "International Borrowers" and together
with the Grantors and the Companies, the "Danka Parties"), BANK OF AMERICA,
NATIONAL ASSOCIATION (formerly known as NationsBank, National Association, a
national banking association formerly known as NationsBank, National Association
(Carolinas)), each other Bank listed on the signature pages hereof (each
individually, a "Bank" and collectively, the "Banks"), and BANK OF AMERICA,
NATIONAL ASSOCIATION (formerly known as NationsBank, National Association), in
its capacity as agent for the Banks (in such capacity, the "Agent"):

                              W I T N E S S E T H:

         WHEREAS, the Companies, the Banks and the Agent have entered into a
Credit Agreement dated as of December 5, 1996, as amended and supplemented by a
First Amendment dated as of December 5, 1997, a Second Amendment dated as of
July 28, 1998, a Third Amendment dated as of December 31, 1998, a Fourth
Amendment dated as of March 29, 1999, a Fifth Amendment dated as of June 15,
1999, a Sixth Amendment dated as of July 9, 1999 (the "Sixth Amendment"), a
Seventh Amendment dated as of December 1, 1999, an Eighth Amendment dated as of
March 24, 2000, a Ninth Amendment dated as of October 31, 2000, a Waiver Letter
Agreement dated as of October 20, 1998 and a Waiver Letter Agreement dated as of
February 18, 1999 (as further amended hereby and as from time to time further
amended, supplemented or modified, the "Credit Agreement"), pursuant to which
the Banks agreed to make certain revolving credit, term loan and letter of
credit facilities available to the Companies; and

<PAGE>   2

         WHEREAS, Article VIII of the Credit Agreement contains financial
covenants, compliance with which cannot be waived or amended without the written
consent of the Majority Banks; and

         WHEREAS, the Danka Parties have requested that the Banks provide
written consent to the amendment of the financial covenants as provided herein;
and

         WHEREAS, the Danka Parties have requested that the Banks provide
written consent to the rescheduling of the January 1, 2001 payment of Term Loan
Outstandings; and

         WHEREAS, Danka Holding desires to sell from time to time all or part of
certain real properties which are subject to a mortgage granted to certain
lenders (the "TROL Lenders") pursuant to the tax retention lease operating
documents (the "TROL Documents") to which certain Danka Parties are party (each
such property, a "Property"); and

         WHEREAS, to release the mortgage held by the TROL Lenders so to
effectuate the sale of a Property, Danka Holding needs to repay a certain sum
(the "Termination Value") of principal indebtedness owed to the TROL Lenders;
and

         WHEREAS, Danka Holding desires to pay the Termination Value to the TROL
Lenders upon the sale of any Property from the net sale proceeds from such sale
and from funds held in a cash collateral account in which the TROL Lenders hold
a first priority security interest (the "Cash Collateral Account"); and

         WHEREAS, the Credit Agreement does not permit any required principal
payments under the TROL Documents; and

         WHEREAS, the Banks and the Danka Parties have agreed to amend certain
provisions of the Credit Agreement and to certain other agreements of the
parties, all as hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants set forth
herein and other good and sufficient consideration, receipt of which is hereby
acknowledged, the Danka Parties and the Banks do hereby agree as follows:

         1.       Definitions. Any capitalized terms used herein without
definition shall have the meaning set forth in the Credit Agreement.

         2.       Amendment of Credit Agreement. Subject to the terms and
conditions set forth herein, Section 8.3 of the Credit Agreement is amended to
add new clause (vii) as follows:

                  "(vii) Notwithstanding anything to the contrary contained in
                  this Section 8.3, compliance with the financial covenants in
                  clauses (i) through (v) of this Section 8.3 shall be deemed
                  satisfied for the period beginning on or after December 31,
                  2000 and through and including the earlier of (1)

                                      -2-
<PAGE>   3

                  March 28, 2001 and (2) the date on which there shall have
                  occurred a "Designated Event" as such term is defined in that
                  certain indenture dated March 13, 1995, between Danka PLC, as
                  issuer, and The Bank of New York, as trustee, pursuant to
                  which Danka PLC issued the Convertible Subordinated Notes, and
                  any Event of Default that may have existed on or after
                  December 31, 2000 as a result of any failure by the Danka
                  Parties to comply therewith during such period shall be
                  waived, if the Danka Parties do not permit:

                                    (a)      The Consolidated Fixed Charge
                           Coverage Ratio as at the end of the four fiscal
                           quarter period ending on December 31, 2000 to be less
                           than 0.80 to 1.00;

                                    (b)      At any time on and after December
                           31, 2000 and on or prior to March 28, 2001 the
                           Adjusted Consolidated Net Worth of Danka PLC and its
                           Subsidiaries to be less than $286,000,000;

                                    (c)      The Consolidated Total Leverage
                           Ratio as at the end of December 31, 2000 for the four
                           fiscal quarter period then ending to exceed 5.30 to
                           1.00;

                                    (d)      The cumulative Consolidated EBITDA
                           of Danka PLC and its Subsidiaries for the four fiscal
                           quarter period ending on December 31, 2000 to be less
                           than $161,000,000; and

                                    (e)      The ratio of (A) Consolidated
                           EBITDA to (B) gross interest expense in each case of
                           Danka PLC and its Subsidiaries as at the end of the
                           four fiscal quarter period ending on December 31,
                           2000 to be less than 1.90 to 1.00.

For purposes of subsections (a), (c), (d) and (e) in this Section 8.3(vii), the
calculation of the Consolidated EBITDA for the four fiscal quarter period ending
December 31, 2000 shall add to income from continuing operations the actual
restructuring charges for such period in an amount not to exceed $62,340,000. In
addition, for purposes of subsections (a), (b) and (e) in this Section 8.3(vii),
the impact of the $10,000,000 waiver extension fee under the Sixth Amendment
dated as of July 9, 1999 on the interest expense for such period shall be
excluded. Notwithstanding anything to the contrary in this Agreement, upon any
occurrence of the circumstances described in subclause (2) of clause (vii) of
this Section 8.3, then immediately, automatically and without any prior notice
thereof, an "Event of Default" as such term is defined in Section 9.1 of this
Agreement shall be deemed to have occurred."

         3.       New Borrowing. Notwithstanding anything to the contrary in the
Credit Agreement, during the period from and after December 31, 2000, the
Companies shall not request, and the Companies shall not be entitled to receive,
any new Borrowing unless the Chief

                                      -3-
<PAGE>   4

Executive Officer or Chief Financial Officer of Danka PLC shall have, on or
before the date of any such request, delivered a certificate to the Banks (in
care of the Agent) setting forth in reasonable detail the then current cash
balances and cash flow projections of the Companies and certifying that the
Companies require the proceeds from such request in order for the Companies to
be able to pay all of their costs and expenses incurred in the ordinary course
of business and to operate their businesses in the ordinary course of business
in the immediate two weeks following any such request; provided, however, that
the Companies shall not be required to deliver such certificate for any new
Borrowing where the aggregate amount outstanding against ABN Amro Bank N.V.'s
commitments under the International Swing Line Agreement after giving effect to
such new Borrowing does not exceed $7,000,000; and provided further that an
election to continue any Syndicated Loan or Bank of America Swing Line loan
pursuant to Section 2.4(a)(ii) of the Credit Agreement shall not be considered a
new Borrowing for purpose of this paragraph 3. At the request of the Banks
(acting through the Agent) the Companies shall provide to the Banks such
additional facts and evidence supporting the conclusions contained in such
certificate as may be reasonably requested by the Agent.

         4.       Dividends, Distributions, Investments. During the period from
and including December 31, 2000 and to and including March 28, 2001 (i) Danka
PLC shall not pay any dividends or make any distributions, except as permitted
pursuant to the first paragraph of Section 8.5 (as amended by the Seventh
Amendment to the Credit Agreement, dated as of December 1, 1999), (ii) neither
the Companies nor any of their Subsidiaries shall make any Acquisitions, and
(iii) neither the Companies nor any of their Subsidiaries shall make any
Investments.

         5.       Rescheduling January 1, 2001 Payment. The Companies may elect,
upon giving of the notice provided for in the proviso to this sentence, to make
the $25,000,000 payment of Term Loan Outstandings, scheduled to be made on
January 1, 2001 in accordance with the provisions of Section 2.9(c) and Schedule
V of the Credit Agreement, on December 29, 2000; provided, that in order for the
Companies to make such election, the Companies shall provide written notice to
the Agent of its election on or before December 22, 2000. Schedule V of the
Credit Agreement is hereby amended to include such scheduled installment
election.

         6.       Repayment of Tax Retention Operating Lease. Notwithstanding
any provision of the Credit Agreement or other Loan Documents to the contrary,
the Companies may make payments to the TROL Lenders of the Termination Value of
any Property, which payments shall be applied to the principal amount of such
loan and any accrued and unpaid interest thereon and "Holder Advances" as
defined in the TROL Documents (the "Permitted Application"); provided that (a)
the funds for such payments shall be derived solely from (i) funds, if any, in
the Cash Collateral Account (including any investment earnings thereon but
excluding any taxes reasonably estimated to be payable thereon), and (ii) net
proceeds from the sale of any Property (determined without any reduction in
respect of outstanding obligations under the TROL Documents) (the "Net TROL
Proceeds"), and (b) within three (3) Business Days of the receipt of the Net
TROL Proceeds, the Companies shall pay to the TROL Lenders one hundred percent

                                      -4-
<PAGE>   5

(100%) of such Net TROL Proceeds, which payment the TROL Lenders agree to apply
to a Permitted Application.

         7.       Amendment Fees; Expenses. Promptly upon the execution of this
Tenth Amendment by the Majority Banks, the Danka Parties shall pay to the Agent
for the benefit of each of the Banks which shall have executed this Tenth
Amendment an amendment fee equal to 1/4% of such Banks' Commitment (the
"Amendment Fee"). The Danka Parties agree promptly to pay or reimburse
reasonable expenses of the Steering Committee and its members (including the
reasonable fees and expenses of outside counsel for the Steering Committee and
each of its members) incurred in connection with the Credit Agreement and the
other Loan Documents. The Companies acknowledge and agree that the Agent has
caused its counsel to retain PricewaterhouseCoopers LLP as independent business
consultant (the "Consultant") to assess on behalf of the Agent, its counsel and
the Banks the operations, finances, and business affairs of Danka PLC and its
Subsidiaries and to furnish reports of its findings and recommendations solely
to the Agent, its counsel and the Banks. The Companies jointly and severally
agree to pay all reasonable fees, costs, and expenses of the Consultant incurred
in connection with the performance by the Consultant of its duties described in
this paragraph. The Companies shall, and shall cause all Subsidiaries to,
cooperate fully and in a timely manner with the Consultant, including its agents
and employees.

         8.       Effectiveness. This Tenth Amendment shall become effective
upon (a) receipt by the Agent of an executed copy of this Tenth Amendment (which
may be signed in counterparts and may be received by facsimile transmission)
signed by the Danka Parties and the Majority Banks, (b) payment by the Danka
Parties to the Agent of the Amendment Fee, and (c) receipt by the Agent of a
copy of a waiver (in form and substance satisfactory to the Agent) of violations
of the financial covenants incorporated in the tax retention operating lease
documents.

         9.       Revised Business Plan. The Danka Parties shall (i) on or
before January 5, 2001, deliver to the Steering Committee a written update on
the process of creating the business plan described in subclause (ii) to this
paragraph 9, and (ii) as soon as practicable, but in any case on or before
February 5, 2001, deliver to the Agent, for the benefit of the Lenders, a
revised five-year business plan (including without limitation a balance sheet,
income statement and statement of cash flow, in each case to include forecasts
on a monthly basis for the remainder of fiscal year 2001 and for fiscal year
2002, and then on a yearly basis for fiscal years 2003, 2004 and 2005) in
reasonable detail.

         10.      Amendments to International Swing Line Agreement. Subject to
the terms and conditions set forth herein, the International Swing Line
Agreement is amended by (a) adding after "(an `Irrevocable Notice of
International Swing Line Borrowing')" in Section 2.3(a) thereof,", if required
by the relevant International Swing Line Bank or Designated Local Lender,", (b)
by adding before the period at the end of Section 2.9 thereof "or such other
facility fee as may be agreed upon from time to time by the Companies and any
International Swing Line Bank", and (c) by adding after "For each International
Swing Line Loan," in Section 4.2(a) thereof, "if required by the relevant
International Swing Line Bank or Designated Local Lender".

                                      -5-
<PAGE>   6

         11.      Acknowledgment; Release.

                  (a)      The Companies and the Grantors 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 Credit Agreement and any other
                           documents which evidence, guaranty or secure the
                           Obligations. The Companies and the Grantors hereby
                           release and forever discharge the Agent, the
                           International Swing Line Banks, the Banks 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.

                  (b)      The International Swing Line Borrowers acknowledge
                           that they have no existing defense, counterclaim,
                           offset, cross-complaint, claim or demand or any kind
                           or nature whatsoever that can be asserted to reduce
                           or eliminate all or any part of their respective
                           liability to pay the full indebtedness owed by any of
                           them under the terms of the International Swing Line
                           Agreement or any separate facility which has been
                           made available to any of them by any International
                           Swing Line Bank or a Designated Local Lender (as
                           defined in the International Swing Line Agreement)
                           and any agreements related thereto. The International
                           Swing Line Borrowers hereby release and forever
                           discharge the Agent, the International Swing Line
                           Banks and the Designated Local Lenders (as defined in
                           the International Swing Line Agreement) 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.

                  (c)      The Danka Parties further acknowledge and agree that
                           any breach by the Danka Parties in the timely
                           performance, observance, or fulfillment of any of the
                           terms or conditions stated herein shall, unless the
                           Majority Banks shall otherwise agree in writing,
                           constitutes an Event of Default under the Credit
                           Agreement.

                                      -6-
<PAGE>   7

         12.      Entire Agreement. This Tenth Amendment 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.

         13.      Deemed Amendment of Other Loan Documents; Full Force and
Effect. To the extent necessary to give effect to the provisions hereof, the
International Swing Line Agreement and Security Agreement shall be deemed
amended and supplemented by the terms hereof. Except as hereby specifically
amended, modified or supplemented, the Credit Agreement and all other Loan
Documents are hereby confirmed and ratified in all respects and shall remain in
full force and effect according to their respective terms.

         14.      Counterparts. This Tenth Amendment may be executed in any
number of counterparts (including, without limitation, counterparts sent by
facsimile transmission), each of which shall be deemed an original as against
any party whose signature appears thereon and all of which shall together
constitute one and the same instrument.

         15.      Governing Law. This Tenth Amendment shall in all respects be
governed by the laws and judicial decisions of the State of Florida.

         16.      Enforceability. Should any one or more of the provisions of
this Tenth Amendment be determined to be illegal or unenforceable as to one of
the parties hereto, all other provisions nevertheless shall remain effective and
binding on the parties hereto.

         17.      Authorization. This Tenth Amendment has been duly authorized,
executed and delivered by the parties hereto and constitutes a legal, valid and
binding obligations of the parties hereto, except as may be limited by general
principles of equity or by the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors' rights generally.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.

WTTNESS:                            DANKA BUSINESS SYSTEMS PLC

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -7-
<PAGE>   8
                                    Danka Holding Company

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    DANKALUX SARL & CO. SCA
                                    BY: DANKALUX SARL, COMMANDITE

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    AMERICAN BUSINESS CREDIT CORPORATION
                                    AMERITREND CORPORATION
                                    CORPORATE CONSULTING GROUP, INC.
                                    D.J. INVESTMENT MANAGEMENT, INC.
                                    DANKA IMAGING DISTRIBUTION, INC.
                                    DANKA MANAGEMENT COMPANY, INC.
                                    DANKA OFFICE IMAGING COMPANY
                                    DYNAMIC BUSINESS SYSTEMS, INC.
                                    HERMAN ENTERPRISES, INC. OF SOUTH FLORIDA

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    QUALITY BUSINESS, INC.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -8-
<PAGE>   9

                                    INTERNATIONAL SWINGLINE BORROWERS

                                    DANKA CHILE COMERCIAL LTDA
                                    DANKA DO BRASIL LIMITADA
                                    DANKA MEXICANA S DE RL DE CV
                                    DANKA DE PANAMA S.A.
                                    DANKA DE COLOMBIA
                                    PUERTO RICO DANKA INC.
                                    DANKA DE VENEZUELA S.A.
                                    DANKA AUSTRALIA PTY LIMITED &
                                    DANKA NEW ZEALAND LIMITED
                                    DANKA OFFICE IMAGING (JAPAN)
                                    DANKA PHILIPPINES INC.
                                    DANKA FRANCE S.A.R.L.
                                    DANKA FRANCE SA
                                    DANKA OFFICE PRODUCTS B.V.
                                    DANKA OFFICE IMAGING GMBH,
                                    DANKA DEUTSCHLAND GMBH,
                                    DANKA DISTRIBUTION GMBH,
                                    DANKA DEUTSCHLAND HOLDING GMBH
                                    DANKA OFFICE PRODUCTS B.V.
                                    DANKA ITALIA S.P.A., BASSILLICHI INFOTEC
                                     S.P.A., DANKA S.P.A. & DANKA OFFICE
                                     IMAGING S.P.A.
                                    DANKA HOLDINGS BV, DANKA EUROPE BV,
                                     DANKA DISTRIBUTION BV (FKA INFOTEC
                                     EUROPE BV), INFOTEC NEDERLAND BV,
                                     DANKA GROUP BV, DANKA SERVICES
                                     INTERNATIONAL BV, DANKA OFFICE
                                     PRODUCTS BV, INFOTEC PARTICIPATIE
                                     BV, AND DANKA NEDERLAND BV
                                    DANKA OFFICE PRODUCTS BV
                                    DANKA BUSINESS SYSTEMS PLC,
                                     DANKALUX SARL & CO. SCA &
                                     DANKA HOLDING COMPANY

                                    By:
                                       -----------------------------------------
                                    Name:  F. Mark Wolfinger
                                    Title: Director

                                      -9-
<PAGE>   10

                                    BANK OF AMERICA, NATIONAL ASSOCIATION.
                                    (formerly known as NationsBank, N.A.), as
                                    Agent and Issuing Bank

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    BANK OF AMERICA, NATIONAL ASSOCIATION
                                    (formerly known as NationsBank, N.A.), as a
                                    Bank (Trade)

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    BANK OF AMERICA, NATIONAL ASSOCIATION
                                    (formerly known as NationsBank, N.A.), as a
                                    Bank

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    BANK OF AMERICA, NATIONAL ASSOCIATION
                                    (formerly know as Bank of America National
                                    Trust and Savings Association), as
                                    International Swing Line Bank

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -10-
<PAGE>   11

                                    BANK OF AMERICA, NATIONAL ASSOCIATION
                                    (formerly know as Bank of America National
                                    Trust and Savings Association), as a Bank

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    THE BANK OF NOVA SCOTIA

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    THE BANK OF NEW YORK

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    CREDIT LYONNAIS NEW YORK BRANCH

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    CIBC INC.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -11-
<PAGE>   12

                                    PNC BANK, KENTUCKY, INC.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    FIRST UNION NATIONAL BANK

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    SUNTRUST BANK

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    THE FUJI BANK AND TRUST COMPANY

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    ABN AMRO BANK N.V.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -12-
<PAGE>   13

                                    PARIBAS

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    HIBERNIA NATIONAL BANK

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    SAN PAOLO IMI SPA

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -13-
<PAGE>   14

                                    LLOYDS TSB BANK PLC

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    THE SUMITOMO BANK, LIMITED

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    BANCA COMMERCIALE ITALIANA
                                    New York Branch

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    AMSOUTH BANK OF FLORIDA

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -14-
<PAGE>   15

                                    THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                    NEW YORK BRANCH

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    BANKERS TRUST COMPANY

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    THE DAI-ICHI KANGYO BANK, LIMITED

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    NATIONAL AUSTRALIA BANK LIMITED
                                    ACN 004044937

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    SANWA BANK LIMITED

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -15-
<PAGE>   16

                                    THE TOKAI BANK LIMITED, NEW YORK BRANCH

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    WACHOVIA BANK OF GEORGIA, N.A.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    NATIONAL WESTMINSTER BANK PLC

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    BANCA NAZIONALE DEL LAVORO S.p.A. -
                                    LONDON BRANCH

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    CREDIT AGRICOLE INDOSUEZ

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -16-
<PAGE>   17

                                    STATE STREET BANK AND TRUST COMPANY

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    THE CHASE MANHATTAN BANK

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    LAZARD BROTHERS & CO., LIMITED

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    SOUTHTRUST BANK, N.A.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -17-
<PAGE>   18

                                    BT HOLDINGS (NEW YORK) INC.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      -18-<PAGE>   1

                                                                  EXHIBIT 4.1(A)

    THIS DOCUMENT IS SUBJECT TO A CONFIDENTIAL TREATMENT REQUEST PURSUANT TO
                          RULE 24B-2 OF THE COMMISSION

                            AMENDMENT AGREEMENT NO. 1
                               TO CREDIT AGREEMENT

         THIS AMENDMENT AGREEMENT (this "Amendment Agreement") is made and
entered into as of this 12th day of January, 2001, 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 (the "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 in the aggregate
principal amount of up to $140,000,000 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 is not in compliance with certain of the
covenants contained in the Agreement and as a result Events of Default exist
under the Agreement; and

         WHEREAS, the Borrower has requested that the Lenders waive the existing
Events of Default and further amend the Agreement in the manner described
herein; and

         WHEREAS, the Lenders are willing to further amend the 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. Unless the context otherwise requires, all
terms used herein without definition shall have the definition provided therefor
in the Agreement.

         2.       Amendment. Subject to the conditions set forth herein, the
Agreement is hereby amended, effective as of December 31, 2000, as follows:

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

<PAGE>   2
                           "Amendment No. 1" means Amendment Agreement No. 1 to
                  Credit Agreement which Amendment No. 1 is dated January 12,
                  2001;

                  (b)      The definition of "Applicable Margin" in Section 1.1
         is hereby 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>
                      Date of Amendment No. 1 through
                      March 31, 2001                                        1.75%

                      April 1, 2001 through June 30, 2001                   2.00%

                      July 1, 2001 through September 30, 2001               2.50%

                      October 1, 2001 through January 15, 2002              3.00%"
</TABLE>

                  (c)      The definition of "Borrowing Base" in Section 1.1 is
         hereby amended by (i) deleting the period at the end and inserting in
         lieu of such period a semi-colon; and (ii) adding the following proviso
         immediately following the semi-colon:

                  "provided, however, that the maximum amount of Eligible
                  Inventory that may be included in the Borrowing Base shall be
                  $45,000,000."

                  (d)      The definition of "Consolidated EBITDA" in Section
         1.1 is hereby amended in its entirety so that as amended it shall read
         as follows:

                           "'Consolidated EBITDA' means, with respect to the
                  Borrower and its Subsidiaries for any fiscal quarter period
                  ending on the date of computation thereof, the sum of, without
                  duplication, (i) Consolidated Net Income, plus any losses or
                  minus any gains [*], (ii) Consolidated Interest Expense, (iii)
                  taxes on income, (iv) amortization, (v) depreciation, (vi)
                  amendment fees payable to Lenders when and to the extent
                  actually paid and other actual cash expenses paid in each case
                  in connection with Amendment No. 1 the aggregate of such fees
                  and expenses not to exceed $[*], all determined on a
                  consolidated basis in accordance with GAAP applied on a
                  Consistent Basis."

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

                           "'Stated Termination Date' means January 15, 2002."

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

                                       2
<PAGE>   3

                  (f)      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, 2002."

                  (g)      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 (i) for
                  the period from the date of Amendment No. 1 through September
                  30, 2001 $50,000,000, (ii) for the period October 1, 2001
                  through December 30, 2001 $45,000,000, and (iii) from and
                  after December 31, 2001 $40,000,000, subject to further
                  reduction from time to time in accordance with Section
                  2.2(e)."

                  (h)      Notwithstanding any provision in the Agreement to the
         contrary, from and after the date of Amendment No. 1 the Borrower shall
         only be entitled to request Advances which bear interest at the Base
         Rate and the Borrower shall no longer be entitled to convert Loans
         pursuant to Section 4.2 to Eurodollar Rate Loans. On the effective date
         of Amendment No. 1 all Eurodollar Rate Loans shall be converted to Base
         Rate Loans. The Agreement is hereby amended to eliminate the Borrower's
         option to elect Eurodollar Rate Loans.

                  (i)       Section 9.1 is hereby amended by (i) deleting the
         word "and" appearing at the end of clause (d), (ii) deleting the period
         appearing at the end of clause (g) and inserting in lieu thereof a
         semi-colon, and (iii) adding new clauses (i) and (j) thereto which
         clauses shall read as follows:

                           "(i)     as soon as practical and in any event not
                  later than Wednesday of each week during the period from the
                  date of Amendment No. 1 through March 31, 2001 and thereafter
                  not later than Wednesday of every second week, deliver to the
                  Agent and the Lenders, a weekly (prior to April 1, 2001) and
                  bi-weekly (after March 31, 2001) cash flow report and budget
                  in form acceptable to the Agent; and

                           (j)      no less frequently than once every two weeks
                  following the date of Amendment No. 1 advise the Agent and
                  Lenders by written updates of the status of its efforts to
                  obtain financing to replace the Revolving Credit Facility and
                  Term Loan Facility."

                  (j)      Section 10.1 is hereby amended by deleting Section
         10.1(b), Section 10.1(c) and Section 10.1(d) therefrom and by adding a
         new Section 10.1(b) thereto reading as following:

                           "(b)     Consolidated EBITDA. Permit Consolidated
         EBITDA for the periods set forth below to be less than that amount set
         forth opposite each such period:

                                       3
<PAGE>   4

<TABLE>
<CAPTION>
                                            Period                     Amount
                           --------------------------------------      ------
                           <S>                                         <C>
                           2nd fiscal quarter of Fiscal Year 2001      $[*]
                           3rd fiscal quarter of Fiscal Year 2001      ${*]
                           4th fiscal quarter of Fiscal Year 2001      $[*]"
</TABLE>

                  (k)      Section 10.2 is hereby amended in its entirety so
         that as amended it shall read as follows:

                           "10.2    Acquisitions. Enter into any agreement,
                  contract, binding commitment or other arrangement providing
                  for any Acquisition."

                  (l)      Section 10.3 is hereby amended in its entirety so
         that as amended it shall read as follows:

                           "10.3    Capital Expenditures. Make or become
                  committed to make Capital Expenditures which exceed in the
                  aggregate for the Fiscal Year 2001 $4,500,000."

                  (m)      Section 10.7 is hereby amended by (i) inserting the
         word "and" at the end of clause (e), (ii) deleting the semi-colon and
         the word "and" at the end of clause (f) and inserting in lieu thereof a
         period, and (iii) deleting clause (g) in its entirety.

                  (n)      Section 10.9 is hereby amended in its entirety so
         that as amended it shall read as follows:

                           "10.9    Restricted Payments. Make any Restricted
                  Payment or apply or set apart any of their assets therefor or
                  agree to do any of the foregoing."

         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)      Except for financial covenant violations herein
         waived, 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)      Except for the financial covenant violations herein
         waived, 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

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

                                       4
<PAGE>   5

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;

                  (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.       Waiver. Each Lender party hereto by its execution of this
Amendment Agreement waives for the period beginning September 30, 2000 through
the effective date of this Amendment Agreement the Event of Default arising by
reason of the Borrower's failure to comply with Section 10.1(b) and Section
10.1(c) of the Agreement.

         6.       Amendment Fee. The Borrower agrees to pay to the Agent for the
benefit of the Lenders which join in the execution of this Amendment Agreement
an amendment fee (the "Amendment Fee") in the amount of $[*], payable as
follows: (i) $[*] on the date of this Amendment Agreement; (ii) $[*] on April 2,
2001; (iii) $[*] on July 2, 2001 and (iv) $[*] on September 1, 2001, which
Amendment Fee shall be fully earned at the date of this Amendment Agreement. In
the event all of the Obligations have been paid in full by April 2, 2001 and the
Facility Termination Date shall have occurred, the April 2, 2001, July 2, 2001
and September 1, 2001 payments will be waived. In the event all Obligations have
been paid in full by July 2, 2001 and the Facility Termination Date shall have
occurred, the July 2, 2001 and September 1, 2001 payments will be waived. In the
event all Obligations have been paid in full by September 1, 2001 and the
Facility Termination Date shall have occurred, the September 1, 2001 payment
will be waived.

         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

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

                                       5
<PAGE>   6

         adopted;

                  (iii)    that portion of the Amendment Fee described in
         paragraph 6(i) above; and

                  (iv)     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 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>   7

         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/ H.O. Woltz III
-------------------------------      By: /s/ Michael C. Gazmarian
Print Name: H.O. Woltz III           ------------------------------------
           --------------------      Name:  Michael C. Gazmarian
                                     Title: CFO and Treasurer
/s/ Gary D. Kniskern
-------------------------------
Print Name: Gary D. Kniskern
           --------------------

                                       7
<PAGE>   8

                                         GUARANTORS:

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

WITNESS:

/s/ H.O. Woltz III
-------------------------------      By: /s/ Michael C. Gazmarian
Print Name: H.O. Woltz III           ------------------------------------
           --------------------      Name:  Michael C. Gazmarian
                                     Title: CFO and Treasurer
/s/ Gary D. Kniskern
-------------------------------
Print Name: Gary D. Kniskern
           --------------------

                                       8
<PAGE>   9

                                         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>   10

                                         BRANCH BANKING AND TRUST COMPANY

                                         By: /S/ Steven G. Bullard
                                            ------------------------------------
                                         Name:   Steven G. Bullard
                                              ----------------------------------
                                         Title:  Senior Vice President
                                               ---------------------------------

                                       10
<PAGE>   11

                                          FIRST UNION NATIONAL BANK

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

                                       11
<PAGE>   12

                                         NATIONAL BANK OF CANADA

                                         By: /s/ Alex M. Council IV
                                            ------------------------------------
                                         Name: Alex M. Council IV
                                              ----------------------------------
                                         Title: Vice President
                                               ---------------------------------

                                         By: /s/ Bill Handley
                                            ------------------------------------
                                         Name: Bill Handley
                                              ----------------------------------
                                         Title: Vice President & Manager
                                               ---------------------------------

                                       12

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