Document:

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                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") made and entered into by and between
THOMAS A. NORMAN (the "Executive") and CT COMMUNICATIONS, INC. (collectively
defined and referred to as the "Parties");

                                   WITNESSETH:

         WHEREAS, Executive has served as Senior Vice President of the Company
for more than four years and is highly knowledgeable about the business and
operations of its organization and the customers that it serves;

         WHEREAS, the Company desires to continue to employ Executive, and
Executive desires to continue to be employed, in the new position of Executive
Consultant as he transitions from his overall employment with the Company,
subject to the terms and conditions set forth in this Agreement;

         WHEREAS, the Parties acknowledge and agree that this Agreement is
supported by valuable consideration and is entered into voluntarily by the
Parties;

         NOW, THEREFORE, in exchange for the premises and mutual covenants
contained in this Agreement, the Parties, intending legally to be bound, agree
as follows:

         1. EMPLOYMENT. The Company agrees to employ Executive during the
Employment Term (as defined in Section 3 below), and Executive hereby accepts
such employment and agrees to serve the Company subject to the general
supervision and direction of the President of the Company (the "Company
President").

         2. DUTIES. During the Employment Term, Executive shall be employed as
an Executive Consultant of the Company and shall perform such general consulting
services and other duties required of his new position as the Company President
may from time to time designate commensurate with Executive's past positions,
experience and expertise with the Company. Executive further agrees to abide by
the general employment policies and procedures applicable to his position as
established from time to time by the Company. However, the Parties agree that
Executive may also be engaged as an employee or otherwise in other
non-competitive business, commercial or non-profit activities during the
Employment Term, provided that such engagements: (a) are specifically authorized
in advance by the Company President (whose authorization shall not be
unreasonably withheld); and (b) do not prevent or unduly limit Executive's
ability to perform his ongoing obligations with the Company.

         3. TERM. Unless sooner terminated as provided in Section 6 below, the
Parties agree that Executive shall be employed by the Company pursuant to this
Agreement for a period beginning March 15, 2000 and ending September 15, 2000
(the "Employment Term"), at which time Executive agrees that he shall
permanently retire from his employment with the Company in accordance with

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the Company's early retirement provisions contained in its Supplemental
Executive Retirement Plan (SERP). Executive further agrees that after execution
of this Agreement by him, he will not apply for other employment, expanded
employment, reemployment or contract work with the Company in the future except
as otherwise set forth in this Agreement.

         4. COMPENSATION.

                  A. BASE SALARY. During the Employment Term, the Company will
         pay Executive a base salary as compensation for Executive's services
         hereunder at a monthly base rate of $11,833.33, equivalent to
         $142,000.00 per year (the "Base Salary"), payable to Executive by the
         Company in monthly installments, less applicable deductions required by
         law.

                  B. OTHER BENEFITS. During the Employment Term, and except as
         set forth in Section 4.c. below, the Company will continue to provide
         to Executive those general benefits that he received and/or in which he
         participated with the Company immediately prior to his employment as
         Executive Consultant, including all pension, SERP and other retirement
         plans, and all group health, hospitalization and permanent disability
         plans or other employee welfare benefit plans, as may be amended from
         time to time and provided Executive otherwise remains eligible to
         participate in such plans by their terms.

                  C. BONUS/LEAVE. Executive will not be eligible to receive or
         participate in any Annual Incentive Program Bonus, Long-Term Incentive
         Plan (LTIP) Bonus or other bonuses or executive compensation plans for
         2000 if and as may be awarded to other employees from time to time by
         the Board of Directions of the Company, in its absolute and sole
         discretion. The Parties, however, agree that Executive shall remain
         entitled to receive and shall not forfeit any vested Annual Incentive
         Program Bonus, Long-Term Incentive Plan Bonus or other executive
         compensation plan pay earned or accrued by him for 1999. In addition,
         Executive agrees that he will not be eligible for any paid or unpaid
         vacation, sick leave or personal days for 2000.

                  D. CELLULAR PHONE/ COMPUTER. During the Employment Term,
         Executive shall continue to have the use of the Company cellular phone
         and computer currently assigned to him for use in connection with the
         performance of his duties under this Agreement. Executive agrees that
         he shall be responsible for the cost of all cellular telephone use,
         roaming charges, fees, taxes and services (excluding the current
         monthly base charge which shall be paid by the Company) associated with
         his use of the Company cellular telephone for non-Company business.
         Executive further agrees that he shall be responsible for the cost of
         all software packages, Internet service charges and any other expenses
         associated with his use of the Company computer for non-Company
         business. In addition, Executive agrees that he shall return the
         Company cellular phone and computer to the Company upon or before the
         end of the Employment Term. Executive also acknowledges and agrees that
         his authorization for business-related costs and other expenses
         associated with the use of the Company cellular phone and computer
         shall be discontinued as of the end of the Employment Term.

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         5. REIMBURSEMENT OF EXPENSES. Subject to prior approval of the Company
President, and upon submission of proper vouchers to the Company, the Company
shall pay or reimburse Executive for all normal and reasonable business expenses
incurred by Executive during the Employment Term in accordance with the
Company's policy then in effect concerning the same.

         6. TERMINATION.

                  A. TERMINATION EVENTS. The Employment Term shall terminate
         immediately upon the occurrence of any of the following events: (i)
         upon the death of Executive; (ii) upon the effective date of
         Resignation by Executive (as defined below); or (iii) upon the close of
         business on the date the Company gives Executive notice of Termination
         for Just Cause (as defined below).

                  B. RESIGNATION. For purposes of this Agreement, "Resignation
         by Executive" shall mean any voluntary termination or resignation by
         Executive of his employment with the Company. Executive is required to
         give at least thirty (30) days advance written notice of resignation to
         the Company, and the Company is entitled upon receiving such notice, in
         its discretion, to accept such resignation as effective on: (i) the
         resignation date proposed by Executive, or (ii) such other earlier date
         designated by the Company. In addition, the Company will be required to
         pay Executive his regular salary and benefits only through Executive's
         final resignation date as agreed to or revised by the Company,
         regardless of whether Executive is actually permitted to perform any
         services for the Company during that period.

                  C. TERMINATION FOR JUST CAUSE. For purposes of this Agreement,
         "Termination for Just Cause" shall mean termination of the employment
         of Executive by the Company as the result of: (i) any conviction,
         guilty plea, confession or plea of nolo contendere by Executive for any
         crime involving moral turpitude or for any felony; or (ii) any act of
         fraud or dishonesty by Executive in connection with Executive's
         employment with the Company or against any of the Company's customers;
         or (iii) the breach or threatened breach of any provision of this
         Agreement by Executive; or (iv) the refusal of Executive to follow
         specific lawful instructions given by the Board of Directors of the
         Company or the Company President.

                  D. EFFECT OF TERMINATION. If termination of the Employment
         Term is due to the death of Executive, Executive's estate or legal
         representative shall be paid Executive's then remaining, unpaid Base
         Salary (as defined in Section 4.a. above) through the end of the
         Employment Term, payable in monthly installments commencing immediately
         upon the death of Executive, less applicable deductions required by
         law. Otherwise, following the Employment Term, except for the payment
         of any earned but unpaid Base Salary and Executive's opportunity to
         obtain continuation medical coverage as allowed by and pursuant to
         COBRA, Executive's rights to his regular salary and benefits with the
         Company shall cease, and Executive shall not be entitled to receive any
         additional severance, wages, compensation, commissions, bonuses,
         incentive compensation, and/or benefits of any kind

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         from the Company, except that Executive shall not forfeit any vested
         401(k), SERP or LTIP benefits with the Company, if any.

                  E. STOCK OPTIONS AND RESTRICTED STOCK. In exchange for the
         release set forth in Section 7 below and the other terms and conditions
         of this Agreement, the Company agrees that upon Executive's upcoming
         separation from employment effective September 15, 2000, following the
         Effective Date of this Agreement (as defined in Section 13 below):

                           (i)      All outstanding, non-lapsed options to
                                    purchase the Company's stock granted to
                                    Executive under the Company's 1995
                                    Comprehensive Stock Option Plan, and, except
                                    as provided in (ii) following, outstanding,
                                    non-lapsed options to purchase the Company's
                                    stock under the Company's Omnibus Stock
                                    Compensation Plan which were granted as part
                                    of the Company's Annual Incentive Program
                                    Bonus and the LTIP for all measurement and
                                    performance periods ending before January 1,
                                    2000, may be exercised by Executive within
                                    ninety (90) days following the Employment
                                    Term;

                           (ii)     Outstanding, nonlapsed options to purchase
                                    the Company's stock under the Company's
                                    Omnibus Stock Compensation Plan which were
                                    granted as part of the Company's Annual
                                    Incentive Program Bonus and the LTIP for all
                                    measurement and performance periods ending
                                    after December 31, 1999, may be exercised by
                                    Executive under the terms and conditions
                                    applicable for such options and as provided
                                    in the grant documents; and

                           (iii)    All restrictions on shares of Company's
                                    stock granted to Executive under the
                                    Company's Restricted Stock Award Program and
                                    the Company's Omnibus Stock Compensation
                                    Plan, including all restricted shares
                                    granted at any time as part of the Company's
                                    Annual Incentive Program Bonus and the LTIP,
                                    shall lapse.

         7. RELEASE. In exchange for the Company's agreement to continue to
employ Executive pursuant to the terms outlined in this Agreement, the stock and
stock option vesting and payment terms set forth in Section 4.e. above, and the
other consideration to Executive set forth in this Agreement, Executive hereby
agrees to release and discharge the Company, as well as its officers, directors,
shareholders, employees, agents, successors and assigns, of and from any and all
claims, actions, damages or demands of any kind whatsoever, whenever or wherever
they arose, including but not limited to any claims that Executive has, may have
or may have had at the time of or prior to his execution of this Agreement
arising out of or related to Executive's entering into this Agreement,
Executive's past employment and transition as Senior Vice President of the
Company, Executive's planned early retirement from the Company, any claims
arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination
in Employment Act, 29 U.S.C. 621, et seq., the Americans with Disabilities Act,
the Family and Medical Leave Act, the North Carolina Equal Employment Practices

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Act, and any and all other state or federal claims, whether under tort or
contract, or under statute or otherwise. Executive further agrees not to file,
institute or pursue any lawsuit, claim or administrative action against such
entities and individuals relating to those claims. It is also expressly
understood that this release is and shall continue to be enforceable regardless
of whether there is a subsequent dispute between the Parties concerning any
alleged breach of this Agreement.

         8. AGREEMENT CONFIDENTIALITY. The Parties agree that the terms of this
Agreement shall remain confidential. The Parties, however, agree that: (a) the
Company may disclose the terms of this Agreement to officers, directors and
management level employees of the Company, to professionals representing it, to
its insurance agents and carriers, and to affiliates and employees of the same
with a need to know or in order to give effect to this Agreement; and (b)
Executive may disclose the terms of this Agreement to his spouse, children,
accountant and attorney; provided that such third parties comply with the
confidentiality requirements set forth above. In addition, the Parties agree
that they are permitted to disclose the terms of this Agreement to the IRS and
the North Carolina Department of Revenue, if necessary, and as otherwise
required by law. The Parties further agree that the Company may also disclose
the terms of this Agreement in its proxy statements or other public securities
filings as required by law.

         9. ADDITIONAL ONGOING OBLIGATIONS. Executive hereby acknowledges and
agrees that he will honor all confidentiality, non-compete, return of records,
and similar post-employment obligations previously agreed to by the Parties
during his employment with the Company, including but not limited to the terms
of Section II and III of his Change in Control Agreement attached as Exhibit A,
and that such obligations shall continue to remain in full force and effect.
Executive also acknowledges and agrees that any breach by him of those
post-employment obligations, including but not limited to the terms of Sections
II and III of his Change in Control Agreement attached as Exhibit A, shall be
deemed to be a breach by Executive of this Agreement.

         10. BREACH. Executive agrees to submit to the jurisdiction of the
courts of North Carolina and agrees that, in the event of any breach or
threatened breach of Section 9 of this Agreement by Executive, the Company shall
be entitled to an injunction, without bond, restraining such breach. In
addition, Executive and the Company agree that the prevailing party in any legal
action to enforce the terms of this Agreement, including but not limited to
Section 9, shall be entitled to costs and attorneys' fees relating to any such
proceeding, but nothing herein shall be construed as prohibiting the Parties
from pursuing other remedies available to them for any breach or threatened
breach.

         11. ACKNOWLEDGMENT BY EXECUTIVE. The Company specifically advises
Executive to consult a lawyer before signing this Agreement concerning the terms
of this Agreement and his rights under the Age Discrimination in Employment Act,
29 U.S.C. 621 et seq. Executive acknowledges that he has carefully read this
Agreement, that he knows and understands the contents of this Agreement, that he
has had ample opportunity to review the terms of this Agreement, that he is
under no pressure to execute this Agreement, that he has consulted with or had
the opportunity to consult with a lawyer regarding this Agreement, and that he
executes this Agreement of his own free will.

         12. WAITING PERIOD. Executive hereby acknowledges and understands that
after receiving this Agreement from the Company, he shall have at least
twenty-one (21) days to consider signing

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this Agreement, and is further aware of his right to consult with an attorney
prior to signing this Agreement. If Executive elects not to take twenty-one (21)
days to sign this Agreement, Executive acknowledges that the period of time used
by him prior to signing this Agreement was ample time to consider and review
this Agreement, it being expressly understood that the Company is imposing no
requirement or duress on Executive to take less than twenty-one (21) days to
consider signing this Agreement. If Executive does not sign this Agreement
within twenty-one (21) days of presentation by the Company, he further
acknowledges that the Company has the option to withdraw its offers set forth in
this Agreement.

         13. REVOCATION RIGHTS. Executive acknowledges and understands that he
shall have seven (7) days from the date this Agreement is signed by him to
revoke this Agreement by advising the Company in writing of the revocation. If
the Agreement is not revoked within seven (7) days from the signing of this
Agreement by Executive, this Agreement shall become effective and enforceable as
to all Parties on the eighth day following the signing of this Agreement by all
Parties (the "Effective Date").

         14. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors,
assigns, heirs and personal representatives; provided, however, that Executive
may not assign any of his rights, title or interest in this Agreement. Executive
further acknowledges and agrees that in the event of the transfer and/or
assignment of this Agreement to a successor or assignee of the Company, this
Agreement shall remain valid and be fully enforceable by such entity.

         15. APPLICABLE LAW. The Parties agree that this Agreement shall be
construed in accordance with the laws of the State of North Carolina.

         16. DISSOLUTION OR MERGER. In the event that the Company consolidates
or merges into or with, or transfers all or substantially all of its assets to,
another entity and such other entity assumes this Agreement, the term "Company"
as used herein shall mean such other entity, and the Parties agree that this
Agreement shall continue in full force and effect without any further action on
the part of either the Company, its successor or assign, or Executive.

         17. WAIVER OF BREACH. No waiver of any breach of this Agreement shall
operate or be construed as a waiver of any subsequent breach by any party. No
waiver shall be valid unless in writing and signed by the party waiving any
particular provision.

         18. SEVERABILITY. The Parties understand and agree that every provision
of this Agreement is severable from each other provision of this Agreement.
Thus, the Parties agree that if any part of the covenants or provisions
contained in this Agreement is determined by a court of competent jurisdiction
or by any arbitration panel to which a dispute is submitted to be invalid,
illegal or incapable of being enforced, then such covenant or provision, with
such modification as shall be required in order to render such covenant or
provision not invalid, illegal or incapable of being enforced, shall remain in
full force and effect, and all other covenants and provisions contained in this
Agreement shall, nevertheless, remain in full force and effect to the fullest
extent permissible by law. The Parties further agree that, if any court or panel
makes such a determination, such court or panel

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shall have the power to reduce the duration, scope and/or area of such
provisions and/or delete specific words and phrases by "blue penciling" and, in
its reduced or blue penciled form, such provisions shall then be enforceable as
allowed by law.

         19. COUNTERPARTS. This Agreement may be executed in duplicate
counterparts, each of which shall be deemed an original and all of which shall
constitute but one and the same instrument.

         20. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
among the Parties pertaining to the subject matter contained herein and
supersedes any and all prior and contemporaneous agreements, representations and
understandings of the Parties, including but not limited to Executive's
September 10, 1998 Employment Agreement with the Company and CT Global
Telecommunications, Inc. In addition, the Parties agree that nothing in this
Agreement shall impact or have any effect on any agreements or understandings
Executive has or may have had with Maxcom Telecomunicaciones, S.A. de C. V. or
Amaritel. Moreover, this Agreement shall not be modified or amended unless
executed in writing by each of the Parties. Notwithstanding the foregoing,
nothing contained herein shall prevent or restrain in any manner the Company
from instituting an action or claim in court, or such other forum as may be
appropriate, to enforce the terms of the post-employment confidentiality
obligations of Executive set forth and/or referenced in this Agreement or any
similar agreement relating to the Company's confidential or proprietary business
information or trade secrets.

         IN WITNESS WHEREOF, the undersigned hereto set their hands and seals as
of the dates set forth below.

         Executed and presented for consideration to Executive by the Company,
this the ____ day of __________, 2000.

                                            CT COMMUNICATIONS, INC.

                                            By:________________________________
                                                President

         Accepted and signed by Executive, this the ____ day of ___________,
2000.

                 ________________________________________(SEAL)
                 Thomas A. Norman

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                         SEVERANCE AGREEMENT AND RELEASE

         THIS SEVERANCE AGREEMENT AND RELEASE (the "Agreement") made and entered
into by and between CATHERINE A. DUDA (the "Executive") and CT COMMUNICATIONS,
INC. (the "Company"), a corporation organized under the laws of the State of
North Carolina (collectively defined and referred to as the "Parties");

                                   WITNESSETH:

         WHEREAS, Executive is currently employed by the Company as a Senior
Vice President at the Company's Concord, North Carolina offices;

         WHEREAS, Executive's last day of employment with the Company shall be
December 31, 2000;

         WHEREAS, the Parties desire to enter into this Agreement to conclude
their employment relationship and resolve all matters by and among them,
including but not limited to, any matters relating to Executive's employment
relationship with and separation from the Company;

         NOW, THEREFORE, in exchange for the premises and mutual covenants
contained in this Agreement, the Parties, intending legally to be bound, agree
as follows:

         1. SEPARATION FROM EMPLOYMENT. The Parties agree that Executive's last
day of employment with the Company shall be December 31, 2000, it being
expressly understood that this Agreement is and will be enforceable and the
Company will be in compliance with this provision 1 provided Executive is paid
her regular salary and benefits through December 31, 2000, whether or not she
actually performs any services for the Company during that period. The Parties
further agree that prior to Executive's separation from employment on December
31, 2000, Executive will reasonably cooperate with the Company in the transition
of her position responsibilities on an as-needed basis. Moreover, the Parties
also agree that during the period January 1, 2001 through March 31, 2001,
Executive agrees to consult with the Company on a limited, as-needed basis
concerning post-transition issues that may arise with respect to subject matters
that are within the current scope of her job duties and responsibilities.

         Except for Executive's opportunity to obtain continuation medical
coverage as allowed by and pursuant to COBRA after December 31, 2000,
Executive's rights to her regular benefits shall cease effective December 31,
2000, except that Executive shall not forfeit any bonus pay as set forth in
provision 5.a. below, vested 1998-2000 Long Term Incentive Plan benefits for the
period through December 31, 2000, or vested 401K benefits. The Parties further
acknowledge and agree that except for

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the confidentiality, non-compete, return of documents and other post-employment
obligations of Executive under the Change in Control Agreement signed by
Executive on October 1, 1997 (the "Change in Control Agreement"), which
obligations shall continue to remain in full force and effect, the Change in
Control Agreement shall be terminated, effective December 31, 2000.

         2. NATURE OF SEPARATION. The Parties agree that the end of the
employment relationship between the Parties shall be treated as a voluntary
resignation by Executive in the personnel records of the Company.

         3. VACATION PAY. Regardless of whether Executive signs this Agreement,
Executive is entitled to receive payment for all then remaining earned but
unused vacation days, if any, as of December 31, 2000, payable by the Company to
Executive in a lump sum amount on or before the next available payday following
December 31, 2000, less appropriate deductions required by law for the payment
of wages, including for state and federal taxes and FICA. The Company will
report the vacation payment as W-2 income for the applicable tax year in which
it is received. Executive also will not accrue and will not be entitled to
receive any additional vacation during any period that she is receiving
severance payments under this Agreement.

         4. EXPENSE REIMBURSEMENT. Regardless of whether Executive signs this
Agreement, the Parties agree that the total expense reimbursements due Executive
for reasonable and authorized expenses incurred by her during her employment
with the Company through December 31, 2000 but not yet reimbursed to her, shall
be payable by the Company to Executive on the next available payday following
December 31, 2000 and the submission of appropriate receipts and other
reimbursement information from Executive to the Company concerning the same,
whichever is later.

         5. SEVERANCE PAYMENTS AND BENEFITS.

                  a. BONUS PAY AND OPTIONS/RESTRICTED STOCK. Regardless of
         whether Executive signs this Agreement, the Company agrees to buy back,
         and Executive agrees to sell, the outstanding, non-lapsed restricted
         shares granted to Executive by the Company on March 1, 1997 (125
         shares, 10 year restriction) and February 27, 1998 (54 shares, 4 year
         restriction) in accordance with such applicable grant terms at a cost
         of $13,375.00 and $7,036.74, respectively, which equals such shares'
         prior value/price at their respective time of issuance. The Company
         also agrees that regardless of whether Executive signs this Agreement,
         the restricted period for the outstanding, non-lapsed restricted shares
         granted to Executive by the Company on February 18, 2000 (394 and 789
         shares, 1 year restriction) shall

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         be lifted and such restricted shares shall be deemed vested, effective
         December 31, 2000.

                  In addition, despite Executive's separation from employment
         effective December 31, 2000 in exchange for the release set forth in
         provision 7 below and the other terms and conditions of this Agreement,
         following the Effective Date of this Agreement (as defined in provision
         14 below), and provided all conditions of this Agreement are met by
         Executive, Executive shall receive payment for: (i) her 2000 Annual
         Incentive Program Bonus for the period through December 31, 2000; and
         (ii) the vested portion of her bonus and other compensation under the
         Company's 1998-2000 Long Term Incentive Plan ("LTIP") for the period
         through December 31, 2000.

                  The Company further agrees that in exchange for the release
         set forth in provision 7 below and the other terms and conditions of
         this Agreement, following the Effective Date of this Agreement, and
         provided all conditions of this Agreement are met by Executive:

                           (1) The vesting schedule for the outstanding,
                  non-lapsed stock options previously granted to Executive by
                  the Company that were originally scheduled to vest in 2001 in
                  accordance with such applicable grant terms (i.e., 2,398
                  option shares granted February 22, 1999 to originally vest
                  February 22, 2001 , 328 option shares granted February 28,
                  1998 to originally vest February 28, 2001, 995 option shares
                  granted March 1, 1997 to originally vest March 1, 2001, and
                  2,392 option shares granted February 18, 2000 to originally
                  vest March 1, 2001) shall be accelerated, and such options
                  shall be deemed vested, effective December 31, 2000, and those
                  options may be exercised thereafter in accordance with the
                  applicable stock option agreements for the same; and

                           (2) The restrictive period for the outstanding,
                  non-lapsed restricted shares granted to Executive by the
                  Company on January 10, 1996 (32 shares, 10 year restriction)
                  and March 1, 1997 (109 shares, 4 year restriction) shall be
                  lifted and such restricted shares shall be deemed vested,
                  effective December 31, 2000.

                  Executive and the Company acknowledge and agree that nothing
         in this Agreement shall alter or in any way affect the vesting schedule
         for the outstanding, non-lapsed stock options previously granted to
         Executive by the Company that were originally scheduled to vest in 2002
         and 2003 in accordance with such applicable grant terms, which options
         shall not vest and shall lapse upon Executive's separation from the
         Company, effective December 31, 2000. Executive further acknowledges
         and agrees that as set forth in Executive's Company stock option plan
         documents, if she desires,

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         Executive will be required to exercise all outstanding, non-lapsed
         vested stock options with the Company within ninety (90) days following
         her separation from employment with the Company, effective December 31,
         2000.

                  Executive's bonus amounts shall be paid less appropriate
         deductions required by law for the payment of wages, including for
         state and federal taxes and FICA, payable to Executive pursuant to the
         terms of each such plan at the same time and in the same manner as all
         other 2000 Annual Incentive Program Bonus and 1998-2000 LTIP payments
         are made by the Company to employees, if any. In addition, a schedule
         listing the outstanding, non-lapsed stock options and outstanding,
         non-lapsed restricted shares granted to Executive under any Company
         stock option agreement, the Company's 2000 Annual Incentive Program
         Bonus and the LTIP prior to December 31, 2000 is attached as Exhibit A.

                  b. SEVERANCE PAY. Following the Effective Date of this
         Agreement (as defined in provision 14 below), and provided all
         conditions of this Agreement are met by Executive, the Company shall
         pay salary continuation to Executive for a ninety (90) day period from
         January 1, 2001 through March 31, 2001 based on Executive's current
         base salary rate of $13,166.67 per month. The Company further agrees
         that in the event that Executive has not accepted or begun work as an
         employee, consultant, independent contractor or otherwise with another
         company, entity or person, has not started her own business/company, or
         has not become self-employed by March 31 , 2001, the Company shall pay
         salary continuation to Executive beginning on April 1, 2001 for an
         additional six (6) month period through September 30, 2001 or until
         Executive accepts -- or begins other work, starts her own
         business/company or becomes otherwise self-employed, whichever is
         earlier, based on Executive's current base salary rate of $13,166.67
         per month. All payments to Executive pursuant to this provision 5.b.
         shall be made by the Company at the same time and in the same manner as
         Executive's prior salary payments, less appropriate deductions required
         by law for the payment of wages, including for state and federal taxes
         and FICA. The Parties further agree that the Company will report such
         severance payments as W-2 income for the applicable tax year in which
         they are received.

                  As an additional condition precedent to Executive's
         eligibility to receive the salary continuation payments set forth in
         this provision 5.b. after March 3 1, 2001, Executive shall be required
         to provide written confirmation to Vice President, Human Resources
         Richard Garner, Jr. to be received by Mr. Garner on or before the 5th
         of each month beginning in April 2001 through September 2001, detailing
         her then work status and whether Executive has accepted or begun work
         as an employee, consultant, independent contractor or otherwise with
         another company, entity or person,

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         has started her own business/company, or has become self-employed
         following her separation from employment with the Company, effective
         December 31, 2000. In the event that Executive fails to provide such
         notice during the periods required or Executive misrepresents or omits
         her actual work status in such notices, Executive shall forfeit at the
         time of the breach the right to any additional severance pay under this
         provision 5.b., and Executive shall be required to refund to the
         Company and the Company shall be entitled to recover of Executive the
         amount of severance pay already paid to or on behalf of Executive by
         the Company under this Agreement for the period following the date of
         Executive's breach by failure to provide timely notice or
         misrepresentation or omission of her work status. Moreover, Executive
         agrees that in the event of any such breach, the Company shall be
         entitled to costs and reasonable attorneys' fees incurred relating to
         any proceeding to enforce or collect a refund of the amounts set forth
         in this provision 5.b.

                  c. COMPUTER. Following the Effective Date of this Agreement
         (as defined in provision 14 below), and provided all conditions of this
         Agreement are met by Executive, the Company shall assign to and allow
         Executive to retain possession of the Company laptop computer currently
         provided to her. In addition, Executive agrees that following her
         separation from the Company effective December 31, 2000, she shall be
         responsible for the cost of all computer and Internet use, long
         distance, hardware, software, fees, taxes, services and any other
         expenses associated with her use of such laptop computer.

         6. NO OTHER PAYMENTS OR BENEFITS. As set forth in Executive's Company
stock option plan documents, Executive acknowledges that, if she desires, she
will be required to exercise all outstanding, vested non-lapsed stock options
with the Company within ninety (90) days following her separation from
employment with the Company, effective December 31, 2000. In addition, except
for the payments described above in this Agreement and Executive's general right
to elect certain coverage continuation under COBRA, Executive acknowledges that
she is not entitled to any additional wages, pay, payments, bonuses, incentive
pay, commissions, compensation, severance pay, consideration or benefits of any
kind from the Company, except that Executive shall not forfeit any vested
1998-2000 LTIP or vested 401(k) benefits with the Company.

         7. RELEASE. In exchange for the severance pay, stock option vesting
acceleration, restricted share vesting acceleration, and other consideration set
forth in provision 5 above, Executive, for herself, her heirs, executors, legal
representatives, administrators, successors and assigns, hereby fully releases,
discharges and covenants not to sue the Company, its affiliate, subsidiary and
parent companies and divisions, as well as such entities' respective officers,

                                       5

<PAGE>   6

directors, trustees, employees, agents, predecessors, successors and assigns
(collectively, the "Releasees"), of and from any and all claims, actions,
lawsuits, damages, administrative charges, or demands of any kind whatsoever,
whenever or wherever they arose, including but not limited to any claims that
Executive has, may have or may have had at the time of or prior to her execution
of this Agreement arising out of or related to: (a) Executive's entering into
this Agreement, (b) Executive's prior employment relationship with the Company,
(c) Executive's separation from employment with the Company, (d) any claims for
breach of contract, implied or express, impairment of economic opportunity,
intentional or negligent infliction of emotional distress, prima facie tort,
defamation, libel, slander, negligent termination, wrongful discharge, or any
other tort, whether intentional or negligent, (e) any claims arising under Title
VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. ss. 2000(e), et seq.;
the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.ss. 621
et seq.; the Civil Rights Act of 1866, 1870, and 1971, 42 U.S.C.ss. 1981, et
seq.; the Civil Rights Act of 1991, Publ. L. No 102-166, 105 Stat. 1071-1100;
the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C.ss.
1001 et seq.; the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), 29
U.S.C.ss. 1161 et seq; the Americans With Disabilities Act, 42 U.S.C.ss. 12191
et seq; the Family and Medical Leave Act, 29 U.S.C.ss. 2601 et seq.; the Worker
Adjustment and Retraining Notification Act, 29 U.S.C.ss. 2101 et seq.; the
United States Constitution and any state constitution; and all applicable rules
and regulations under such acts, statutes and constitutions; (f) any claims
arising under the common law of any state, including but not limited to, the
North Carolina Handicapped Persons Protection Act, N.C.G.S.ss. 168A-l et seq.;
the North Carolina Wage and Hour Act, N.C.G.S.ss. 95-25.1 et seq.; the North
Carolina Retaliatory Employment Discrimination Act, N.C.G.S.ss. 95-240 et seq.;
the North Carolina Workers' Compensation Act, N.C.G.S.ss. 97-1 et seq.; and the
North Carolina Equal Employment Practices Act, N.C.G.S.ss. 143-422.2; and (g)
all other federal, state and local civil rights acts, regulations, and orders
relating to any term, condition, or termination of employment, whether under
tort or contract, or under statute or otherwise. Executive further agrees not to
file, institute or pursue any lawsuit, claim or administrative action against
the Releasees relating to those claims.

         The Parties, however, agree that this release shall not: (i) include
any claims relating to the obligations of the Company under this Agreement; (ii)
affect Executive's vested and accrued rights as a participant in the Company
sponsored 401(k) plan; (iii) affect Executive's right to exercise any conversion
rights provided to Executive in the Company's insurance and benefits plans, if
any; or (iv) affect any rights or claims that may arise out of events occurring
after the date this Agreement is signed. The Parties further expressly
understand and agree that this release is and shall continue to be enforceable
regardless of whether there is a subsequent dispute between the Parties
concerning any alleged breach of this Agreement.

                                       6

<PAGE>   7

         8. AGREEMENT CONFIDENTIALITY. The Parties agree that the terms of this
Agreement, including the amounts of any payments made as outlined in provision 5
above, shall remain confidential. The Parties, however, agree that: (a) the
Company may disclose the terms of this Agreement to officers, directors and
management level employees of the Company, to professionals representing it, to
its insurance agents and carriers, and to affiliates and employees of the same
with a need to know or in order to give effect to this Agreement; and (b)
Executive may disclose the terms of this Agreement to her spouse, children,
accountant or tax return preparer to the extent necessary in preparing her 2000
or 2001 tax returns or to receive relevant tax advice, and attorney in a legally
recognized privileged communication, provided that such third parties comply
with the confidentiality requirements set forth above. In addition, the Parties
agree that they are permitted to disclose the terms of this Agreement to the
IRS, the North Carolina Department of Revenue, and other applicable state
departments of taxation, if necessary, and as otherwise required by law. The
Parties further agree that the Company may also disclose the terms of this
Agreement in its proxy statements or other public securities filings as required
by law.

         9. ADDITIONAL ONGOING OBLIGATIONS. Executive hereby acknowledges and
agrees that all confidentiality, non-compete, return of documents and similar
post-employment obligations previously agreed to by the Parties during her
employment with the Company, if any, including but not limited to the terms of
Sections II and III of her Change in Control Agreement attached as Exhibit B,
shall continue to remain in full force and effect. Executive also acknowledges
and agrees that any breach by her of those post-employment obligations,
including but not limited to the terms of Sections II and III of her Change In
Control Agreement, shall be deemed to be a breach by Executive of this
Agreement.

         10. COOPERATION. Executive agrees to cooperate with and provide
assistance to the Company and its legal counsel in connection with any
litigation (including arbitration or administrative hearings) or investigation
affecting the Company in which, in the reasonable judgment of the Company's
counsel, Executive's assistance or cooperation is needed. Executive shall, when
requested by the Company, provide testimony or other assistance and shall travel
at the Company's request in order to fulfill this obligation. Provided, however,
that, in connection with such litigation or investigation, the Company shall
attempt to accommodate Executive's schedule, shall provide her with reasonable
notice in advance of the times in which her cooperation or assistance is needed,
and shall reimburse Executive for any reasonable expenses incurred in connection
with such matters.

         11. BREACH. Executive agrees to submit to the jurisdiction of the
courts of North Carolina and agrees that, in the event of any breach or
threatened breach of provisions 7-10 of this Agreement by Executive, the Company
shall be entitled to an

                                       7

<PAGE>   8

injunction. without bond, restraining such breach. In addition, Executive and
the Company agree that the prevailing party in any legal action to enforce the
terms of this Agreement, including but not limited to provisions 7-10 above,
shall be entitled to costs and attorneys' fees relating to any such proceeding,
but nothing herein shall be construed as prohibiting the Parties from pursuing
other remedies available to them for any breach or threatened breach.

         Moreover, Executive also agrees that if Executive breaches any of
provisions 7-10 above, Executive shall be required to refund to the Company and
the Company shall be entitled to recover of Executive the amount of severance
pay already paid to or on behalf of Executive by the Company under this
Agreement at the time of the breach, and Executive shall forfeit at the time of
the breach the right to any additional severance pay under the Agreement. In
such case, the Parties agree that the release contained in provision 7 and the
separation from employment of Executive shall remain valid and enforceable based
upon the consideration actually paid. Moreover, Executive agrees that in the
event of any such breach, the Company shall be entitled to costs and reasonable
attorneys' fees relating to any proceeding to enforce or collect a refund of the
amounts set forth in this provision.

         12. ACKNOWLEDGMENT BY EXECUTIVE. The Company specifically advises
Executive to consult a lawyer before signing this Agreement concerning the terms
of this Agreement and her rights under the Age Discrimination in Employment Act,
29 U.S.C. ss.621 et seq. Executive acknowledges that she has carefully read this
Agreement, that she knows and understands the contents of this Agreement, that
she has bad ample opportunity to review the terms of this Agreement, that she is
under no pressure to execute this Agreement, that she has had the opportunity to
consult with a lawyer regarding this Agreement, and that she executes this
Agreement of her own free will. Executive further acknowledges that the Company
has no prior legal obligation to make the consideration payments and benefits
that it has provided in exchange for the agreements, releases and covenants of
Executive under this Agreement.

         13. WAITING PERIOD. Executive hereby acknowledges and understands that
after receiving this Agreement from the Company, she shall have at least
twenty-one (21) days to consider signing this Agreement, and is further aware of
her right to consult with an attorney prior to signing this Agreement. If
Executive elects not to take twenty-one (21) days to sign this Agreement,
Executive acknowledges that the period of time used by her prior to signing this
Agreement was ample time to consider and review this Agreement, it being
expressly understood that the Company is imposing no requirement or duress on
Executive to take less than twenty-one (21) days to consider signing this
Agreement. If Executive does not sign this Agreement within twenty-one (21) days
of presentation by the Company, she further acknowledges that the Company has
the option to withdraw its offer set forth in this Agreement.

                                       8

<PAGE>   9

         14. REVOCATION RIGHTS. Executive acknowledges and understands that she
shall have seven (7) days from the date this Agreement is signed by her to
revoke this Agreement by advising the Company in writing of the revocation. Any
such revocation of this Agreement must be in writing, signed by Executive, and
delivered to Mr. Richard Garner, Jr., CT Communications, Inc., Post Office Box
227, Concord, NC 28026. If the Agreement is not revoked within seven (7) days
from the signing of this Agreement by Executive, this Agreement shall become
effective and enforceable as to all Parties on the eighth day following the
signing of this Agreement by all Parties (the "Effective Date"). In addition, if
Executive revokes or elects not to sign this Agreement, such revocation or
election shall in no way alter or affect Executive's last day of employment with
the Company, which shall be December 31, 2000.

         15. SUCCESSORS AND ASSIGNS. This Agreement Shall be binding upon and
inure to the benefit of Executive, the Company, and their respective successors,
assigns, heirs and personal representatives; provided, that Executive may not
assign any of her rights, title or interest in this Agreement. The Parties,
however, agree that nothing shall preclude (a) Executive from designating a
beneficiary to receive any benefit payable upon Executive's death, or (b) the
executors, administrators or other legal representatives of Executive or
Executive's estate from assigning any rights hereunder to the person or persons
entitled thereunto. Executive further acknowledges and agrees that in the event
of the transfer and/or assignment of this Agreement to a successor or assignee
of the Company, this Agreement shall remain valid and be fully enforceable by
such entity. In addition, in the event that the Company consolidates or merges
into or with, or transfers all or substantially all of its assets to, another
entity, and such other entity assumes this Agreement, the term "Company" as used
herein shall mean such other entity, and the Parties agree that this Agreement
shall continue in full force and effect without any further action on the part
of either the Company, its successor or assign, or Executive.

         16. NO ADMISSIONS. This Agreement does not constitute any admission by
the Company or the Releasees of any violation by them of any contract,
agreement, plan, statute, ordinance, constitutional provision or other law, and
this Agreement shall in no manner be deemed an admission, finding, or indication
for any purpose whatsoever that the Company or the Releasees have at any time,
including the present, committed any unlawful acts against Executive or treated
her unfairly or improperly in any way. Executive further understands and
acknowledges that the Company enters into this Agreement solely to resolve all
matters between the Parties in an amicable fashion.

         17. GOVERNING LAW. The Parties agree that this Agreement shall be
deemed to be a contract made under, and for all purposes shall be governed by
and

                                       9

<PAGE>   10

construed in accordance with, the internal laws and judicial decisions of the
State of North Carolina, except as superseded by federal law.

         18. WAIVER OF BREACH. No waiver of any breach of this Agreement shall
operate or be construed as a waiver of any subsequent breach by
any party. No waiver shall be valid unless in writing and signed by the party
waiving any particular provision.

         19. COUNTERPARTS. This Agreement may be executed in duplicate
counterparts, each of which shall be deemed an original and all of which shall
constitute but one and the same instrument.

         20. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
among the Parties pertaining to the subject matter contained in it and
supersedes any and all prior and contemporaneous agreements, representations and
understandings of the Parties related to the subject matters hereof. Moreover,
this Agreement shall not be modified or amended unless executed in writing by
each of the Parties to this Agreement. Notwithstanding the foregoing, nothing
contained in this Agreement shall prevent or restrain in any manner the Company
from instituting an action or claim in court, or such other forum as may be
appropriate, to enforce the terms of the post-employment confidentiality,
non-compete and return of documents obligations of Executive set forth in the
Change In Control Agreement or any similar agreement relating to the Company's
confidential or proprietary business information or trade secrets, to protect
the Company's proprietary or confidential business information or trade secrets,
to enforce or protect the Company's patent, copyright, trademark or trade name
rights, to redress claims of product disparagement or trade libel, or to protect
the Company's reasonable business relations.

         IN WITNESS WHEREOF, the undersigned hereto set their hands and seals as
of the dates set forth below.

         Executed and presented for consideration to Executive by the Company,
this the ____ day of December, 2000.

                                                 CT COMMUNICATIONS, INC.

                                                 By:  /s/ Richard A. Garner, Jr.
                                                      --------------------------

                                                 Title: Vice President
                                                        ------------------------

                                       10

<PAGE>   11

         Accepted and signed by Executive, this the 24th day of December, 2000.

                                                       EXECUTIVE

                                                       /s/ Catherine A. Duda
                                                       -------------------------
                                                       Catherine A. Duda

Sworn to and subscribed before
me this the __ day of
________, 2000.

______________________________
Notary Public

My Commission Expires:

______________________________

                                       11

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