ADDENDUM TO THE LOAN AGREEMENT FOR RECEIVABLES BACKED BORROWING

                                                                    EXHIBIT 10.5


                                 ADDENDUM TO THE
                LOAN AGREEMENT FOR RECEIVABLES BACKED BORROWING


      THIS ADDENDUM to the LOAN AGREEMENT FOR RECEIVABLES BACKED BORROWING among
THE COASTAL CORPORATION SECOND PENSION TRUST, (hereinafter "COASTAL"), and
INTELECT COMMUNICATIONS, INC., (hereinafter "ICI", collectively, the "PARTIES"),
is effective as of January 13, 1999.

      WHEREAS, COASTAL has loaned Five Million Dollars ($5,000,000) to ICI under
the Loan Agreement for Receivables Backed Borrowing dated September 14, 1998
("Loan Agreement"), Note and Security Agreement of the same date ("Coastal
Receivables Facility"); and

      WHEREAS, the Loan Agreement, Note and Security Agreement mature on
August 31, 1999;

      WHEREAS, St. Xxxxx has provided a loan to ICI, as evidenced by those
certain Convertible Promissory Notes dated effective April 2, 1998 (the "St.
Xxxxx Notes"), which Notes are secured by the Common Stock of DNA Enterprises,
Inc. ("DNA"), Intelect Visual Communications Corporation ("IVC"), and Intelect
Network Technologies Company ("INT"), pursuant to that certain Borrower Pledge
Agreement dated February 12, 1998, (as amended the "St. Xxxxx Pledge
Agreement");

      WHEREAS, it is a condition of the St. Xxxxx Notes that the maturity date
of February 12, 1999, may be extended for a period of one year only if the
Maturity Date of the Coastal Receivables Facility is extended to the same date;

      WHEREAS, the Parties desire to amend the Loan Agreement in accordance with
its terms, including the receipt of consents, to extend the Maturity Date to
February 12, 2000, at which time the balance of principal and interest shall be
immediately due and payable to COASTAL;

      NOW THEREFORE, in consideration for the mutual covenants set forth herein,
agree as follows:

      1.    TERMS DEFINED

            The definitions used herein have the meaning attributed to them
in the Loan Agreement unless otherwise defined herein.

      2.    AMENDMENT

            The term "Termination Date" is amended to read "February 12, 2000".
The Parties agree that all terms and conditions of the Agreements, including
accrual of interest, shall apply as if the Maturity Date had been defined as
herein, AB INITIO.

      3.    FURTHER AMENDMENTS

      COASTAL and ICI agree that all other provisions of the Loan Agreement
shall remain unchanged and in full force and effect; provided that the Parties
may agree to further amendment or modification to the Loan Agreement but only if
evidenced by a writing signed by or on behalf of COASTAL and ICI, subject to
receipt of any consents or authorizations required by the Agreements.

      IN WITNESS WHEREOF the Parties have executed this Addendum as of the day
and year indicated above.


INTELECT COMMUNICATIONS, INC.       THE COASTAL CORPORATION SECOND
                                        PENSION TRUST


By: ___________________________      By: ________________________________
      Xxxxxx X.  Xxxxxxxx                   Xxxxxx X.  Xxxxxxxxx
      Chairman and CEO                      Trustee